Susanville City Council
November 19, 2025

1 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, November 19, 2025 – 4:30 PM
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 City Council at this time upon any subject for discussion during Closed Session.

A. PUBLIC EMPLOYMENT - pursuant to Government Code §54957

1. City Manager - Evaluation

4. Return to Open Session: (recess if necessary)
• Reconvene in open session at 5:00 PM
• Pledge of Allegiance
• Invocation
• Report any changes to agenda
• Report any action out of Closed Session
• Awards or Presentations by the City Council

5. Business from the Floor: Any person may address the City 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's November 5, 2025 regular meeting

6.B. Vendor and Payroll Warrants

6.C. Consider Resolution No. 25-6490, approving and authorizing the Mayor to execute Memorandum of Understanding with the Operating Engineers Local Union No. 3 – Fire Unit for July 1, 2025 through and including June 30, 2026

7. Public Hearings:

7.A. Consider Ordinance No. 25-1050, Amending certain Sections of Chapter 04 of Title 15 Building and Construction, of the Susanville Municipal Code to reflect the adoption of the

2 California Building Standards Code, 2025 Title 24 edition Chapters 1-12 and referenced Appendices.

8. Council Discussion/Announcements:

9. New Business:

9.A. Consider Resolution No. 25-6491, Approving and Accepting A Donation From Tractor Supply Company Foundation

9.B. Consider Resolution No. 25-6492, authorizing the City Manager to execute agreements with Pace Engineering and NST Engineering for on-call engineering services.

9.C. Consider Resolution No. 25-6493, Accepting the City of Susanville's Audited Financial Statements for the Fiscal Year ending June 30, 2024

9.D. Consider Resolution No. 25-6494, Supporting Sacred Heart Church procession in honor of Our Lady of Guadalupe and authorizing closure of Nevada Street from Maple Street to Weatherlow Street, North Street from Maple Street to Weatherlow and Union Street from North Alley to North Street on Sunday, December 14, 2025, from 12:00 pm to 1:00 pm.

9.E. Consider Resolution No. 25-6495, approving the City's modified organizational structure.

9.F. Consider Resolution No. 25-6496, Authorizing the City Manager to implement the Volunteer Firefighter Local Area Call Back Program

9.G. Consider Resolution No. 25-6497, authorizing the City Manager to execute a professional services agreement with J.U.B. Engineers, Inc. for design services (PS&E) for Riverside Dr. Pedestrian and Bicycle Trail Project

9.H. Consider Resolution No. 25-6498, Authorizing the City Manager to accept the terms and conditions of T-Mobile Contract for the Susanville Police Department

9.I. Consider Resolution No. 25-6499, authorizing the Acting Public Works Director to issue a Notice of Completion for Project No. 19-01, 2014 STIP Pavement Project ‘FD’

10. Susanville Community Redevelopment Agency:

11. Susanville Municipal Energy Corporation:

12. Continuing Business:

12.A. Discussion regarding Memorial Ball Park Grandstand Fire Emergency Operations

13. City Manager's Reports:

13.A. Department Reports - Public Works

14. Future Council Items:

14.A. Future Council Items

15. Adjournment:

3 • The next regular meeting of the Susanville City Council will be held on December 3, 2025 at 4:30 PM.

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.gov, 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 wheelchairaccessible.

I, Heidi Whitlock, certify that I caused to be posted notice of the regular meeting scheduled for November 19, 2025 in the areas designated on November 14, 2025.

Agenda Item No. 6.A.

Standard Review
Susanville City Council Agenda Item
Submitted By: Heidi Whitlock, City Clerk
Action Date: November 19, 2025
Subject: Minutes of the City Council's November 5, 2025 regular meeting Presented By: Heidi Whitlock, City Clerk
Summary: Attached for the Council’s review are the minutes of the City Council’s November 5, 2025, regular meeting.

Fiscal Impact: None.

Action Requested: Motion to waive the reading, approve, and receive and file the minutes of the City Council November 5, 2025, regular meeting.

Attachments:

1. 2025.11.05.cc.min

SUSANVILLE CITY COUNCIL
Regular Council Meeting Minutes
WEDNESDAY, NOVEMBER 5, 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:

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

2. PUBLIC COMMENT REGARDING CLOSED SESSION ITEMS: No public comment.

3. CLOSED SESSION:

The City Council convened in closed session at 4:30pm to discuss the following:

A. PUBLIC EMPLOYMENT – pursuant to Government Code §54957:

1. Public Works Director

2. Public Safety Chief

3. City Manager - Evaluation
B. CONFERENCE WITH LABOR NEGOTIATORS - pursuant to Government Code Section §54957.6

1. Agency Negotiator: Dan Newton, City Manager
Bargaining Unit(s):

Miscellaneous
Department Head:

City Clerk

4. RETURN TO OPEN SESSION:

The Pledge of Allegiance and Invocation were provided.

Dan Newton, City Manager, stated that prior to convening in closed session the Council approved the agenda as presented. He continued that they then met 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:

Theresa Phillips, LMUD, provided an update on the current power outage, including the ongoing plan, and thanked public safety for their recent assistance.

6. CONSENT CALENDAR:

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

6.A Minutes of the City Council October 15, 2025, regular and special meetings Motion to waive the reading of and approval to receive and file the minutes of the City Council October 15, 2025, regular meeting.

6.B Vendor and Payroll Warrants
Motion to Receive and File

6.C Consider Resolution No. 25-6486 adopting corrected Exhibit A to the Memorandum of Understanding with the Susanville Police Officer Association for July 1, 2025 through and including June 30, 2027

7. PUBLIC HEARINGS: No business.

8. COUNCIL DISCUSSION/ANNOUNCEMENTS:

Council Member Bortle provided the Land Acknowledgment Statement.

9. NEW BUSINESS:

9.A Discussion regarding Economic Development Strategic Plan Mr. Newton provided an explanation of the item, presented Miriam Valdez of Beacon Economics to provide additional information, and requested Council discussion.

Mayor Schuster stated that she liked the plan, and she believes that it would be useful.

She suggested the front page should state Gateway to Mount Lassen and not Gateway to Shasta.

Council Member Bortle stated that he also liked the plan and that it addresses the outdoor activities available in our area. He stated that it is referenced often therefore it’s obviously a significant asset to Susanville.

9.BConsider Resolution No. 25-6487, authorizing the Finance Director to increase the FY 2025-2026 7301 Geothermal Fund Budget by $3,400
Erik Edholm, Assistant Director of Engineering, provided an explanation of the item and requested Council approval of Resolution No. 25-6487.

Moved by Russ Brown, 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.C Consider Resolution No. 25-6488, supporting the Thanksgiving Turkey Trot and authorizing the closure of Riverside Drive from Alexander Avenue to Fairfield Street on Thursday, November 27, 2025, from 7:30AM to 10:00AM
Dan Newton, City Manager, provided an explanation of the item and requested Council approval of Resolution No. 25-6488.

Moved by Russ Brown, seconded by Dawn Miller to approve.

Motion Carried: 4-1
Voting For: Mendy Schuster, Russ Brown, Curtis Bortle, Dawn Miller Voting Against: Patrick Parrish

9.D Consider Resolution No. 25-6489, approving Employment Agreement with Heidi Whitlock, City Clerk

Mr. Newton provided an explanation of the item and requested Council approval of Resolution No. 25-6489.

Moved by Patrick Parrish; 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

10. SUSANVILLE COMMUNITY REDEVELOPMENT AGENCY: No business.

11. SUSANVILLE MUNICIPAL ENERGY CORPORATION: No business.

12. CONTINUING BUSINESS:

12.A Consider Ordinance No. 25-1049, amending section 2.04.070 of the City of Susanville Municipal Code related to the order of business.

Heidi Whitlock, City Clerk, provided an explanation of the item and requested waiving the second reading and adoption of Ordinance No. 25-1049.

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

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

12.B Discussion regarding Memorial Ball Park Grandstand Fire Emergency operations Review emergency actions taken to safeguard the public and determine if it is necessary to continue the emergency action. Motion to authorize continuation of emergency action to remediate fire damage at the Memorial Ball Park.

Mr. Newton provided an explanation of the item and requested Council approval to continue with the emergency item.

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

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

13. CITY MANAGER'S REPORTS: No business.

14. FUTURE COUNCIL ITEMS:

14.A Future Council Items
Council Member Brown requested that an item be brought forward regarding the upgrading of the City Council Chambers. Item had support and will be brought back.

15. ADJOURNMENT:

Moved by Russ Brown; seconded by Curtis Bortle to adjourn at 6:13pm.

Motion: 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:

Agenda Item No. 6.B.

Finance Review
Susanville City Council Agenda Item
Submitted By: Stefanie Steward, Asst. Director - Finance Action Date: November 19, 2025
Subject: Vendor and Payroll Warrants
Presented By: Chandra Jabbs, Finance Director
Summary: Warrants dated October 22, 2025 through November 4, 2025 numbered 225163-225166 and 225168-225263.

Fiscal Impact: Accounts Payable warrants totaling $205,824.82, plus $335,306.47 in Payroll warrants, for a total of $541,131.29.

Action Requested: Motion to file and receive.

Attachments:

1. 10-30-2025

2. 10-31-2025

3. 10-23-2025

Agenda Item No. 6.C.

Standard Review
Susanville City Council Agenda Item
Submitted By: Jolene Arredondo, Deputy City Manager
Action Date: November 19, 2025
Subject: Consider Resolution No. 25-6490, approving and authorizing the Mayor to execute Memorandum of Understanding with the
Operating Engineers Local Union No. 3 – Fire Unit for July 1, 2025 through and including June 30, 2026
Presented By: Dan Newton, City Manager
Summary: The City of Susanville and representatives from the Operating Engineers Local Union No. 3 – Firefighters Unit have negotiated a labor agreement according to the requirements of the MeyersMilias-Brown Act and the agreement has been negotiated within the parameters established by the City Council for July 1, 2025 through and including June 30, 2026.

Key Changes to this MOU are as follows:
• Cost of Living Allowance (COLA) 3% for the term of the MOU, effective 11/22/2025 through 6/30/2026,
• 5% (two Salary Matrix Ranges) reclassification of all positions within the Unit effective November 22, 2025
• 2.5% (one Salary Matrix Ranges) reclassification of
Firefighter I position effective January 3, 2026
• In lieu of retroactive increases to July 1, 2025, each member of the Unit will receive a lump sum payment
• Addition of 15-year 2.5% longevity
• Addition of life insurance coverage for each member of the Unit equal to the Police Officer coverage
• Incorporation of side letter language adopted from previous MOU term
Fiscal Impact: Subject to the terms negotiated by the Operating Engineers Local Union No. 3 – Firefighters Unit
Action Requested: Motion to approve Resolution No. 25-6490, approving and authorizing the Mayor to execute Memorandum of Understanding with the Operating Engineers Local Union No. 3 – Firefighters Unit for July 1, 2025, through and including June 30, 2026
Attachments:

1. 25-6490

2. 2025.2026 FIRE MOU

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RESOLUTION NO. 25-6490

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUSANVILLE

APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE MEMORANDUM OF UNDERSTANDING WITH THE OPERATING ENGINEERING LOCAL UNION NO. 3 FIREFIGHTERS UNIT FOR JULY 1, 2025, THROUGH AND INCLUDING JUNE 30, 2026
WHEREAS, the City of Susanville and representatives from the Operating Engineers Local Union No. 3 – Firefighter bargaining unit have negotiated a labor agreement according to the requirements of the Meyers-Milias-Brown Act; and
WHEREAS, the Bargaining Unit has ratified the respective agreement; and WHEREAS, the agreement has been negotiated within the parameters established by the City Council.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Susanville that the Memorandum of Understanding with the Operating Engineers Local Union No. 3 – Firefighter bargaining unit for the period of July 1, 2025 through and including June 30, 2026 is hereby approved.

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 19th day of November 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

_____________________________
Heidi Whitlock, City Clerk

APPROVED AS TO FORM:_____________________________
Margaret Long, City Attorney

MEMORANDUM OF UNDERSTANDING

BETWEEN AND FOR

CITY OF SUSANVILLE

AND THE
OPERATING ENGINEERS LOCAL UNION NO. 3

FIREFIGHTERS
July 1, 2025 through and including June 30, 2026

1 Table of Contents

1. INTRODUCTION..................................................................................................................................... 2

2. EMPLOYEE RIGHTS ................................................................................................................................ 2

3. CITY RIGHTS........................................................................................................................................... 2

4. NONDISCRIMINATION........................................................................................................................... 3

5. UNIT RECOGNITION .............................................................................................................................. 3

6. UNIT DESCRIPTION................................................................................................................................ 5

7. SALARY SCALE, MERIT STEP, CAREER DEVELOPMENT AND PAY PERIOD ............................................. 5

8. UNIFORMS ............................................................................................................................................ 8

9. PHYSICAL FITNESS EQUIPMENT ............................................................................................................ 9

10. IRS SECTION 125 PLAN; DEFERRED COMPENSATION ........................................................................... 9

11. RETIREMENT ......................................................................................................................................... 9

12. WORK SCHEDULE ................................................................................................................................ 10

13. HOLIDAYS ............................................................................................................................................ 11

14. VACATION ........................................................................................................................................... 12

15. OVERTIME ........................................................................................................................................... 13

16. HEALTH, DENTAL AND VISION INSURANCE ........................................................................................ 13

17. ACTING DUTY OFFICER........................................................................................................................ 14

18. SALARY PROTECTION PLAN................................................................................................................. 14

19. EMPLOYEE’S SICK LEAVE ..................................................................................................................... 14

20. MILITARY LEAVE.................................................................................................................................. 15

21. ADMINISTRATIVE LEAVE ..................................................................................................................... 16

22. JURY DUTY........................................................................................................................................... 16

23. FAMILY ILLNESS LEAVE........................................................................................................................ 16

24. BEREAVEMENT LEAVE......................................................................................................................... 16

25. LAYOFF POLICY.................................................................................................................................... 16

26. CALIFORNIA OFFICE OF EMERGENCY SERVICES (OES)........................................................................ 18

27. OES HOTEL/MOTEL COSTS .................................................................................................................. 19

28. LIFE INSURANCE .................................................................................................................................. 19

29. PAST PRACTICES.................................................................................................................................. 19

30. SOLE AGREEMENT............................................................................................................................... 19

31. RESIDENCY POLICY .............................................................................................................................. 20

32. SAVINGS CLAUSE................................................................................................................................. 20

33. TERM OF THE MEMORANDUM OF UNDERSTANDING ....................................................................... 20

34. SIGNATURES........................................................................................................................................ 21 EXHIBIT A..................................................................................................................................................... 22 EXHIBIT B..................................................................................................................................................... 23 EXHIBIT C..................................................................................................................................................... 24 EXHIBIT D .................................................................................................................................................... 25 EXHIBIT E..................................................................................................................................................... 27 EXHIBIT F ..................................................................................................................................................... 28 EXHIBIT G .................................................................................................................................................... 29

2 1. INTRODUCTION
The representatives of the City of Susanville, hereinafter called the “CITY”, and the representatives of the Firefighters Unit, hereinafter called the “UNIT”, having met and conferred in good faith, have mutually agreed to recommend to the City Council of the City of Susanville and to the Unit membership of the Firefighters Unit that the following Memorandum of Understanding (MOU) be adopted and that the wages, hours and other terms and conditions of employment in this exclusive agreement be implemented.

The purpose of the Memorandum of Understanding is to promote harmonious relations between the CITY and the employees covered herein so as to promote employer-employee relations by providing a written document enumerating the entire agreement between the employer and employees pursuant to the purpose and the intent of California Government Code Section 3500.

As of July 8, 2023, the Assistant Fire Chief has been added to this UNIT. This MOU governs Fire Department positions of Assistant Fire Chief, Fire Captain, Firefighter I, Firefighter II and Fire Apparatus Engineer. For the term of this Agreement, the Firefighters Bargaining Unit will be composed of Assistant Fire Chief, Fire Captains, Firefighter I’s, Firefighter II’s and Fire Apparatus Engineers.

2. EMPLOYEE RIGHTS
Employees of the CITY have the right to form, join and participate in the activities of employee organizations of their own choosing for the purpose of representation on all matters of employer-employee relations within the scope of representation. Employees of the CITY shall also have the right to refuse to join or participate in the activities of employee organizations and shall have the right to represent themselves individually in their employment relations with the CITY.

3. CITY RIGHTS
A. The CITY retains the right, subject to and in accordance with applicable laws and the provisions of the MOU:

1. To direct employees in the performance of their duties.

2. To hire, promote, transfer assign and discipline employees.

3. To dismiss employees because of lack of work, or in accordance with personnel rules and regulations.

4. To determine the mission of its divisions and department, number of employees, and the numbers, types, classifications, descriptions and grades

3 of positions, or employees, assigned to an organizational unit, work project, shift, or tour of duty, and the methods and technology of performing its work.

5. To take whatever action may be appropriate to carry out its mission in situations of emergency.

B. In addition, the CITY specifically retains all the rights, subject to the provisions of the MOU, to take whatever actions and set whatever policies it deems necessary, with appropriate notification to Fire Unit employees.

C. This section will not operate to deny any employee rights guaranteed by applicable law, including the Meyer-Milias-Brown Act.

4. NONDISCRIMINATION
The CITY and UNIT agree not to discriminate against any employees in accordance with applicable law. Also, it is recognized that whenever the masculine gender is referred to in this MOU, it shall include the female gender and vice versa.

5. UNIT RECOGNITION
A. Acknowledgment
The CITY agrees to acknowledge the Operating Engineers Local Union No. 3 as the only recognized employee organization representing the regular full-time nonmanagement employees itemized in Section 6.

B. Dues and other Union-Sponsored Benefit Program Deductions:

1. The CITY shall honor an employee’s check–off authorization for dues, or other Union-sponsored program, which are submitted in writing, through electronically recorded phone calls, via online deduction authorization, or by any means of indicating agreement allowable under state and federal law, regardless of whether the employee is a member of the Union.

2. Deductions for dues or other Union-sponsored program shall start the pay period after the CITY receives notification of the authorization. The employer may transmit such payment to the Union through electronic funds transfer (EFT). However, transfer of funds shall not be later than thirty (30) days after the deduction from the employee’s earnings occurs.

3. The CITY requests to authorize dues/other deduction(s), or request to change status regarding such deductions, shall be directed to the Union rather than the employer. The employer CITY shall rely on the Union’s explanations in a certified list, submitted by a representative of the Union

4 who has authority to bind the Union, regarding whether an authorization/change in deduction(s) has been requested by the employee.

4. The Union shall not be required to provide the CITY a copy of the employee’s authorization unless a dispute arises about the existence or terms of the authorization.

5. The Union shall indemnify the CITY for any claims made regarding such deductions.

6. Violations of this Section of the MOU are grieveable.

A. Data Pertaining to Deductions:

Upon request from the Union. The CITY shall produce to Operating Engineers’ Local Union No. 3, a malleable electronic file containing the following information:

1. Full Name (first, middle, last, suffix)

2. Employee Number

3. Job Classification

4. Job Type (full-time, part-time)

5. Bargaining Unit

6. Hours worked in the preceding payroll period, which are the basis for the dues deduction.

7. Pay Step

8. Pay Rate

9. Department

10. Division (sub code of the department)
B. Regular Receipt of Bargaining Lists:

It shall be The City of Susanville’s responsibility, once notified by Operating Engineers Local Union No. 3, to provide a list of all current employees covered by this Agreement, which shall include each employee’s name, home address, home and cell phone numbers, personal and work e-mail addresses, work locations, department, employee identification number, hourly rate of pay, hours worked and gross pay. This list will include all employees newly hired, rehired, reinstated, transferred into or out of the bargaining unit, transferred between departments, promoted, reclassified, downgraded, placed on leaves of absence of any type including disability, placed on or recalled from layoff, separated (including retirement), added or deleted from preceding bi-monthly period.

C. Protect Contract, Biographical and/or Demographic information of Unit members from third parties:

In order to protect bargaining unit employees from harassment or invasion of privacy, the CITY shall immediately notify the Union of any third-party request for contact, biographical and/or demographic information about the bargaining unit

5 employees. The CITY shall promptly provide the Union a copy of the request and any materials submitted with the request.

The CITY shall provide the Union at least ten (10) days to review the request and challenge the scope of the request prior to the CITY responding to the request. The CITY agrees to consider the Union’s response prior to disclosing to the third party any contact, biographical, and/or demographic information about the bargaining unit employees.

The CITY agrees that it will not create a report for a non-exclusive representative requestor that does not already exist. If the CITY is required by law to furnish a non-exclusive representative requestor with a report, it agrees not to provide it in a malleable electronic format.

The CITY shall not permit a non-exclusive representative to access bargaining unit members during working hours or in work areas.

The CITY agrees that non-exclusive representatives are prohibited from soliciting bargaining unit members on the employer’s property.

The CITY agrees to adopt further safeguards against harassment of invasion of privacy by non-exclusive representatives, including but not limited to establishing filters in the CITY’s email system to block emails from non-exclusive representatives.

6. UNIT DESCRIPTION
This UNIT shall consist of all full-time regular or probationary employees of the CITY of the Susanville Fire Department listed in Exhibits A-C of this MOU.

7. SALARY SCALE, MERIT STEP, CAREER DEVELOPMENT AND PAY PERIOD
A. Pay Period:

Pay periods will conform to 26 pay periods within a full year with the pay day occurring bi-weekly, every other Friday.

B. Salaries:

For the period of July 1, 2025 through November 21, 2025, salaries shall be paid at the rates depicted in the attached global bi-weekly salary matrix (Exhibit F).

Position classifications ranges for the period of July 1, 2025 through November 21, 2025 are unchanged from previous MOU as depicted in (Exhibit A).

Effective November 22, 2025, salaries shall be modified as depicted in the attached global bi-weekly salary matrix (Exhibit G), which represents an approximate 3%

6 increase above previous. Effective November 22, 2025, each position classification range will be increased by two ranges as depicted in the attached position classification table (Exhibit B).

Effective January 3rd, 2026, the Firefighter I position classification will be increased by one range as depicted in the attached position classification table (Exhibit C).

Existing UNIT members in lieu of retroactive increases to July 1, 2025, will receive a lump sum payment (subject to standard payroll withholdings, including applicable state and federal taxes) within 30-days of ratification of this agreement by the City Council. This will be issued by a separate check and will be paid as follows:

Existing employees, at time of City Council ratification of MOU, hired before September 1, 2025, shall receive: $4,062.50
Existing employees, at time of City Council ratification of MOU, hired on or after September 1, 2025, and on or before September 30, 2025, shall receive: $1,000 Existing employee, at time of City Council ratification of MOU, hired on or after October 1, 2025, and on or before City Council ratification of MOU shall receive:
$500.

C. Merit Pay:

Merit increases will not be automatic and will be based upon merit as evidenced by a performance evaluation. Employee evaluations resulting in a rating score of “Meets Job Standards” or above are eligible for a merit step increase.

Effective July 1, 2021, when an employee has been at one step for 12 months of service, employee may, according to merit, progress to the next step (B-H). Merit increases will not be automatic and will be based upon merit as indicated in paragraph above.

Effective upon ratification of this MOU, after an employee of this UNIT has been at the new step H for 12 months they may, according to merit, be granted an amount of $2,500 annually based on demonstration of “truly superior employee performance” as evidenced in an employee evaluation. Such stipend is not subject to retirement credit but is subject to taxation.

D. Professional/Educational Incentive Program:

A professional/educational incentive program is established as of January 1, 1994.

Incentive pay will be provided as follows:

7 1. Fire Officer Certification:

May be obtained through California State Fire Training after successful completion of all required subject material course. Employee will be compensated at 2.5% salary increase.

2. AA Degree in Fire Science or Certification of Completion in Related Field:

Acceptance and definition of related field will be at CITY’s discretion.

However, it will include, but not necessarily be limited to fire science, law enforcement, medical, public administration, and business administration.

Obtaining this degree will be compensated by a 2.5% salary increase.

3. Baccalaureate Degree:

A baccalaureate degree in a related field will qualify employees for an additional 2.5% salary increase.

4. City of Susanville Hazardous Materials Response Team, EOS – Hazmat Team:

Membership will be compensated at a rate of 5% salary increase.

5. California State Fair Marshal Career Track:

Employee will be compensated at 2.5% salary increase for completion of CA State Fire Marshal Career Track.

Effective January 6, 2024, the following incentives have been added:

6. Swift Water Rescue Technician 2.5% salary increase

7. CPR Instructor 2.5% salary increase

8. Low Angle Rope Operator Rescue Certification 2.5% salary increase

9. SCUBA Certification 2.5% salary increase

10. State Fire Marshall Training Instructor 2.5% salary increase These professional educational incentives may be earned in any job classification level and will continue to be carried over into any higher promotional level granted to the employees.

Each incentive pay increase will be added to the existing step and range of the employee at the time of earning the incentive recognized for compensation.

E. Training and Certification Costs:

The CITY will pay approved training costs and all costs associated with obtaining and maintaining certifications required by the CITY.

F. Flex Staffing:

8 Effective July 1, 1998 the CITY will implement flex staffing for the positions of Firefighter I, Firefighter II and Fire Apparatus Engineer. Within this group there will be no change in the number of positions but incumbents and future employees will be allowed to progress from Firefighter I to Firefighter II to Fire Apparatus Engineer based upon requirements set out in adopted job descriptions and merit.

Incumbents as of the effective date of this Agreement shall be advanced as appropriate.

G. Professional Development Plan:

The purpose of the City of Susanville Firefighters Professional Development Program is to increase and maintain high levels of professionalism among firefighters and to effectively prepare firefighters for advancement.

H. Longevity:

Effective November 22, 2025, employees’ base salary will be increased based on longevity as follows:

1. 2.5% at 7 years of service

2. 2.5% at 10 years of service

3. 2.5% at 15 years of service
Each longevity increase increment of 2.5% is achieved by providing the members of this UNIT with a salary matrix range increase. Each range in the salary matrix is

2.5% higher than the previous range.

8. UNIFORMS
A. During the term of this MOU, the CITY shall provide each employee in this UNIT with an annual uniform allowance of $1,000. Such uniform allowance shall be paid annually in June.

B. New hires will receive a $500 uniform allowance upon hire and receive the annual $1,000 uniform allowance paid in June.

C. The Public Safety Chief agrees to meet and confer with members of the Fire Department prior to changes in the currently approved uniform. In the event of a uniform change, the Chief shall provide a minimum of six (6) months before any change goes into effect. This may be waived by the UNIT. Members of this UNIT may elect to meet with the Chief as an advisory group prior to the Chief making any uniform changes.

D. Temporary Firefighters will be provided with uniforms at Public Safety Chief’s discretion.

9 9. PHYSICAL FITNESS EQUIPMENT
The CITY agrees to provide $1,500 annually toward an employee physical fitness and wellness program.

Physical Fitness and Wellness Program:

All members of this UNIT will be eligible to receive an equal share of the money available from this Section, i.e., $1,500 / 8 = $187.50 per member. This money will be available for the purchase of physical fitness equipment, athletic club membership and clothing for training. Members can provide the CITY with receipts for reimbursement for the abovementioned items pending approval of the Public Safety Chief.

Presumptive Heart/Lung Physical:

Effective July 1, 2021, the CITY agrees to cover the cost of a cardiac stress test and chest x-ray every two (2) years for each employee covered by this Memorandum of Understanding, should they elect to have one.

CITY will reimburse employees or directly pay medical provider for actual costs of a cardiac stress test and chest x-ray services up to the cumulative amount of $2,000.00 for every two CITY fiscal years. Only one cardiac stress test and/or chest x-ray will be provided for every two fiscal years beginning July 1, 2021.

10. IRS SECTION 125 PLAN; DEFERRED COMPENSATION
The CITY agrees to establish an IRS Section 125 Plan for Employees’ use. The CITY will contribute $50 per month as a contribution to an employee’s Section 125 plan; or The CITY will match on a dollar-for-dollar basis contribution to a deferred compensation plan with a maximum contribution of $50 per month.

11. RETIREMENT
A. Effective July 1, 2015, the CITY shall pay the employer’s share and the employee shall pay the employee’s 9% share of the existing retirement program of 3% at 50, single highest year, with California Public Employees Retirement System for Legacy employees.

B. New Employees as defined by the CalPERS hired after January 1, 2013 will be subject to the mandatory provisions of AB340/PEPERA.

10 12. WORK SCHEDULE
A shift trade between two employees to work the other’s shift, which does not add to department costs for overtime or compensatory time, shall be allowed provided reasonable advance notice and is approved by the Public Safety Chief or designee. A shift trade among employees must be between equal ranks and must be paid back within twelve (12) months.

The Assistant Fire Chief is not eligible for schedule changes or shift trades.

The CITY and UNIT agree to the 48/96 work schedule that consists of two consecutive twenty-four (24) hour shifts on duty followed by four (4) twenty-four hours (24) shifts off duty as follows:
48/96 Schedule – XXOOOO repeat Kelly Schedule – XOXOXOOOO repeat X = 24 hour shift on duty, O = 24 hours off duty
The CITY and UNIT have identified ten (10) performance measures and evaluation criteria for the requested 48/96 Schedule, as shown in Exhibit “E”.

The CITY and UNIT have also discussed and agreed to the following scenarios:

A. 100% member buy-in remains in effect during the evaluation period.

B. Sick Leave/Vacation Coverage: will remain per policy and past practice.

C. Long first night: If during the first night, staff respond to 3 calls, or work for hours, between the hours of midnight (2400) and six (0600), that shift will be required to take and rest an additional one (1) hour taken consecutively with the lunch break.

The Public Safety Chief reserves the right to implement the Kelly Schedule at his/her discretion. The Kelly Schedule shall remain as follows:

A. Fire Department shift personnel covered by this MOU shall work a 56-hour work week (average over a year) which shall consist of working 24 hour shifts in each work cycle, on the formula of 24 hours on-duty, 24 off duty, 24 off duty and 96 off duty. This work schedule equates to a 28-day work period (224 hours) B. A “working day” or “weekday” shall be defined as one-fifth (or 11.2 hours) of the employee’s work week, whenever those terms are used in this MOU for vacation, holidays, family illness and bereavement days.

C. From time-to-time personnel from the UNIT may be assigned to a 40-hour work week instead of the usual 24-hour shift schedule. This type of assignment will be observed as follows:

1. If the 40-hour assignment is temporary in nature (e.g., one month or less) the assignee will continue to receive vacation/sick leave accrual at their appropriate 24-hour shift rate.

11 2. If the 40-hour position becomes a permanent UNIT classification, the assignee will accrue vacation/sick leave at their shift rate until a six-month probationary period has been successfully completed. At that time, the assignee will convert to the appropriate accruals for their time in service as per the 40-hour work schedule formula.

3. Any person in this UNIT assigned to a 40-hour schedule will continue to be represented by the Firefighters Unit and be entitled to the benefits of that MOU, except in areas where the shift benefits and 40-hour MOU benefits conflict.

13. HOLIDAYS
A. An employee in the UNIT (except the Assistant Fire Chief – see 13.B.) who works on a holiday as defined in the Employee Manual shall receive 11.2 hours of straight time pay in addition to regular pay for each holiday worked. All employees in the UNIT will be paid an amount equivalent to six (60) holidays at a rate of 11.2 hours per holiday annually on the pay period preceding December 15.

B. The Assistant Fire Chief, when working a holiday as defined in the Employee Manual, may take an alternate day off work with approval of the Public Safety Chief. The Assistant Fire Chief may not defer alternate days off for more than 90 days.

C. Floating Holiday:

All members within this UNIT are entitles to take one (1) floating holiday once per calendar year (January 1 – December 31). Floating holiday can be employee’s birthday or a substitute day to be selected mutually by the employee and the supervisor.

Employees should notify their supervisor in advance of the date they intend to take their floating holiday. The floating holiday is a full day paid leave. The duration is equivalent to the employee’s regular working hours. Supervisors will work with employees to ensure operational needs are met while granting the floating holiday.

Floating holidays cannot be carried over to the following calendar year. In exceptional cases where the operational needs of the CITY cannot be met due to the absence of multiple employees on the same day, the CITY reserves the right to reschedule the floating holiday.

12 14. VACATION
A. Employees in this UNIT shall earn vacation credit as set forth in the Employee Manual except for the Assistant Fire Chief who shall earn annual vacation credit accrued per pay period as specific below:
0-1 years 3.69 hours accrued/pay period
1-5 years 4.62 hours accrued/pay period
5-10 years 5.23 hours accrued/pay period
10-15 years 6.15 hours accrued/pay period
15-20 years 7.69 hours accrued/pay period
20+ years 9.23 hours accrued/pay period
B. In order that employees obtain the maximum benefit for themselves, each vacation should be taken in a single period, if possible. It is desirable that vacations are not split to less than one calendar week.

C. Vacation schedules will be arranged to avoid the necessity of work stoppage, slowing down of work, or need for additional help
D. The time at which the employee shall be granted a vacation is at the sole discretion of the Department Head. The employee’s preference will be taken into account as far as possible. The predominant factor to be considered will be the CITY’s needs.

E. Subject to the provisions of Section 14.D above, vacation will be taken in accordance with departmental seniority regardless of classification or job assignment.

F. Vacation time shall be understood as shift time charged based upon a 24-hour period credit in lieu of an eight-hour credit for positions excluding the Assistant Fire Chief.

G. For the Assistant Fire Chief, vacation credit will vest and become available for use upon the successful completion of the introductory period. Accrued vacation time may be used during the introductory period, subject to the approval of the City Manager on a case-by-case basis. The maximum vacation accrual shall be 240 hours. The City Manager may authorize increasing the maximum vacation accrual for a defined period of time if the excess accrual was created because the City Manager canceled the Assistant Fire Chief’s scheduled vacation due to a CITY emergency. Any vacation hours accrued over 240 hours shall be bought back by the CITY at fifty percent (50%) of employee’s base salary during December special payroll.

13 15. OVERTIME
A. The Assistant Fire Chief is classified as an exempt employee and therefore is not eligible for overtime.

B. The CITY agrees that all hours worked in excess of 224 hours in a 28-day work period shall be compensated for at the rate of 1.5 times the regular rate of pay.

C. The assignment of overtime will be at the CITY’s sole discretion and scheduled by supervisory personnel. However, the CITY shall endeavor to select among those employees who are qualified, those individuals who wish to work overtime, and when reasonably possible, to schedule such overtime in advance.

D. The CITY shall have the right to require employees to work whenever necessary.

E. The CITY shall grant either pay for overtime pursuant to Section 13 of the MOU or compensatory time off at the rate of 1.5 times the number of overtime hours worked. It shall be the employee’s option to select pay or compensating time off.

No employee shall accrue more than 240 hours of compensatory time off. An employee may elect to receive lump sum cash out for compensatory time between September 1 and December 1 of each year of this MOU.

F. An employee who is called in to work for any period one hour or more following the conclusion of the work shift or a previous call-in, shall receive a minimum of three (3) hours at 1.5 times the regular rate of pay.

G. Overtime is defined as time worked in excess of 224 hours. Time worked shall include time absent with pay, such as vacation time, compensatory time off, sick leave, emergency leave, family leave or bereavement leave. Time worked will not include time worked as a result of voluntary shift trades.

H. A shift trade between two employees to work the other’s shift, which does not add to department costs for overtime pay or compensatory time, shall be allowed provided reasonable advanced notice and is approved by the Public Safety Chief or designee. A shift trade among employees must be between equal ranks and must be paid back within 12 months.

16. HEALTH, DENTAL AND VISION INSURANCE
A. Effective July 1, 2013 the CITY shall pay the cost of health, dental and vision insurance premium for each unit member covered under this MOU. Each unit

14 member shall contribute $30 per month towards the current plan premium. CITY will continue to research options for the best cost-effective coverage, at its discretion. The CITY reserves the right to select, change, administer and shall have the right to select any carrier or other method providing coverage to fund the benefits and may adjust the amount the CITY shall pay for such benefits. If the insurance provider is changed and the cost is less than $953 per month per employee, the CITY shall cap the amount of its contribution to an amount not less than 100 percent of the cost of the new plan.

B. Health insurance will be made available to retirees with no minimum vesting, if allowed under the current plan. Retirees will be eligible to purchase health insurance under the abovementioned plan with the vesting requirement if allowed by the plan. A credit of fifty (50%) percent of accumulated sick leave at time of retirement, capped at $15,000, will be paid out per month toward fifty (50%) percent of the premium. This amount is subject to CalPERS regulations.

17. ACTING DUTY OFFICER
From time-to-time a permanent employee will be named as the Acting Duty Officer who is temporarily assigned to the fire ground command duties and some responsibilities of the Public Safety Chief position. When assigned as the Acting Duty Officer, the permanent employee shall be compensated an additional two hundred twenty-five dollars ($225.00), per start of any 24-hour period. The Assistant Fire Chief is not eligible for Acting Duty Officer pay.

18. SALARY PROTECTION PLAN
A. The CITY will pay an amount not to exceed $187 per contract year per employee of the premium amount for a salary protection insurance plan. The payment will either be in the form of a reimbursement to each employee who participates in the salary protection plan, or by direct payment to the company providing the salary protection program.

B. This benefit amount ($187) is for a salary protection plan only and cannot be applied to any other program, nor can any employee receive cash in lieu of this benefit.

19. EMPLOYEE’S SICK LEAVE
A. Employees within this UNIT will receive 12 hours of sick or accident allowance for each full month of employment up to a total of 144 hours allowance per calendar year, unlimited accumulation.

15 B. Sick leave will be administered according to the rules in the Employee Manual.

C. Sick leave benefits are payable only for an employee’s regularly scheduled workdays on which he or she is off as a result of the employee’s illness or accident.

D. Under the Public Employees’ Retirement System, credit for unused sick leave (Section 20965) of the Government Code shall be a benefit provided to each employee of this UNIT upon retirement and in accordance with the rules and regulations of CalPERS.

E. At retirement, 50 percent of accumulated sick leave may be applied to 50 percent of insurance premiums per month.

F. Sick Leave Incentive Program:

Effective January 1, 2023, an employee may elect to convert sick days to vacation days based on their sick leave use during a calendar year, as part of the December special payroll and subject to vacation cap limitation pursuant to employee manual as depicted below. The Assistant Fire Chief is not eligible for sick leave incentive program.

Sick Leave Used Annually: Conversion Option:
0 sick shift used 36 hours sick leave to vacation leave 1 sick shift used 24 hours sick leave to vacation leave 2 sick shifts used 12 hours sick leave to vacation leave G. Sick leave accrual for the Assistant Fire Chief shall be as follows:

1. The position shall accrue four (4) hours of sick leave for each full pay period of employment and shall be able to use sick leave in accordance to the provisions of the Employe Manual.

2. Under the Public Employees’ Retirement System, credit for unused sick leave shall be a benefit provided to the Assistant Fire Chief upon retirement and in accordance with the rules and regulations of CalPERS. At retirement, 50% of accumulated sick leave may be applied to 50% of insurance premiums per month.

3. Sick leave benefits are payable only for an employee’s regularly scheduled workdays on which he or she is off as a result of the employee’s illness or accident.

20. MILITARY LEAVE
Military leave shall be granted in accordance with the provision of state law. All employees entitled to military leave shall give the City Manager and/or the City Manager’s authorized

16 representative an opportunity, within the limits of military regulations, to determine when such leave shall be taken.

21. ADMINISTRATIVE LEAVE
The Assistant Fire Chief shall receive sixty (60) hours of Administrative Leave per fiscal year in addition to vacation leave. Such leave will be credited July 1 of each year.

Administrative Leave will be made available from the time of hire, at fifteen (15) hours credited for each three (3) month period remaining in the fiscal year during which the employee is hired, prorated for the first three (3) month period. Administrative Leave is made available in recognition of the Assistant Fire Chief’s responsibility to perform functions after normal business hours. Administrative Leave may not accrue, and any unused leave will be extinguished as of June 30 each year. The Assistant Fire Chief may sell up to thirty (30) hours of unused Administrative Leave back to the CITY during December’s special payroll, and up to thirty (30) hours in June’s special payroll. This benefit is not available to an employee who has not successfully completed their introductory period.

22. JURY DUTY
While serving on jury duty, employees will still be paid by the CITY on the basis of a 40- hour week, at their normal rate of pay, on condition that any compensation (in excess of mileage expenses) received from the court be turned over to the CITY.

23. FAMILY ILLNESS LEAVE
Family illness leave and other associated family leaves are set out in the Employee Manual.

24. BEREAVEMENT LEAVE
Bereavement leave is available as set out in the Employee Manual.

25. LAYOFF POLICY
It is recognized by the UNIT that when due to fiscal, operational or organizational reasons, it is necessary to reduce CITY employment, such action and its implementation, except as qualified herein, shall be at the sole discretion of the CITY. When it is deemed necessary to reduce CITY employment by layoff of employees, the layoff procedure shall protect the right of the CITY to retain the most qualified employees, while also recognizing the relative seniority of affected employees. The following layoff policy is adopted to accomplish this purpose:

Section 1:

17 The CITY shall have the sole right to determine which class or classes shall be subject to layoff.

Section 2:

The order of layoff of employees within a class or classes subject to layoff shall be:

11. Provisional or temporary employees

12. Part-time employees

13. Probationary employees

14. Full-time, regular employees
Within each of the first three categories, the order of layoff shall be at the discretion of the appointing authority. Order of layoff of full-time, regular employees shall be according to the following procedure established in this Section.

In the case of layoffs for full-time, regular employees, the following factors shall be considered in the following orders:

1. Knowledge, training, ability, skill, adaptability, attitude and efficiency.

2. Physical fitness required for the job.

3. Seniority.

Section 3:

Seniority Determination: Seniority will be established by department and within a class. Among employees with equal seniority, the order of layoff shall be determined by the appointing authority.

Procedure: Each department is considered separately when layoff occurs.

Employees shall first exhaust demotion rights within a department and class in which the employee had prior full-time, regular status, provided the demote has a higher seniority than an employee working in that classification. Employees demoting to a lower classification in which they held prior full-time, regular status shall be subject to Factors 1 and 2 in 24 Section 2 above.

Section 4:

Re-employment: Employees laid off, or demoted in lieu of layoff, shall have a priority right of return to their prior class. This right shall remain effective for one year from the date of demotion or separation from the service.

Section 5:

Grievance and Arbitration Discipline Procedures:

1. Grievances shall be handled as outlined the City of Susanville Employee Manual.

2. Formal appeals for discipline involving an unpaid suspension, demotion, reduction in pay or termination may be appealed to binding arbitration in

18 lieu of appeal to the City Council. The parties agree that loss of special assignment pay due to routine operational reassignment is not to be considered discipline for the purpose of arbitration, unless such reassignment is specified in a discipline notice. Parties will share cost of any arbitration or mediation.

26. CALIFORNIA OFFICE OF EMERGENCY SERVICES (OES)
The CITY and the UNIT agree to reopen to continue discussions regarding increased compensation to personnel deployed as part of OES out of area fire assignments during the term of this 2025/2026 MOU term.

The CITY provides firefighting services to OES under a contract between the CITY and OES. Personnel assignments under the OES contract will be made by the Public Safety Chief, based upon contractual and operational requirements. Whenever possible, firefighters’ wishes as to whether the assignment is desired will be considered. Any firefighter so assigned will keep a record of time worked in the manner prescribed and will be compensated according to the compensation provisions of this MOU and the Fair Labor Standards Act, i.e., straight-time for services under the OES contract service on regular duty days, and time and one-half for services on non-duty days. All monies received for services provided under the OES contract will be accounted for in the Fire Department budget.

The CITY will pay Mutual Aid Assignment Pay for the Assistant Fire Chief as follows:

In the course of their employment and away from their official duty station and assigned to an emergency incident, in support of an emergency incident, or prepositioned for emergency response, portal-to-portal the Assistant Fire Chief shall be compensated at a rate on one and one half (1.5) times his/her hourly salary, excluding benefits.

1. Such payment shall be made only after receipt by the CITY of the reimbursement for such services.

2. If the Assistant Fire Chief chooses and is authorized by the Public Safety Chief to take such deployment, they shall be responsible to take personal time off for portalto-portal assignment time.

3. The Public Safety Chief has sole discretion as to if and when the Assistant Fire Chief will be assigned to out-of-area fires.

4. The Assistant Fire Chief is limited to one deployment per fiscal year with a maximum of fourteen (14) days of deployment.

19 27. OES HOTEL/MOTEL COSTS
Following every seven (7) consecutive days of deployment, the CITY will provide, at the CITY’s expense, one (1) room for every two (2) employees/firefighter volunteers deployed. It is agreed that this provision is available to volunteers and full-time employees.

28. LIFE INSURANCE
Effective November 22, 2025, all members of this UNIT shall receive a life insurance policy equal to the amount of coverage received by the CITY to the members of the Susanville Police Offices Association Bargaining Unit at no cost to the employee.

29. PAST PRACTICES
Nothing contained in this MOU shall be interpreted as to imply or permit the invocation of past practice, or tradition, or accumulation or vesting of any employee rights or privileges other than those expressly stated herein.

The CITY and UNIT agree that only those past practices, standards, obligations and/or other commitments of the CITY to its employees which are expressly stated herein shall be in full force and effect during the term of this MOU.

All other past practices, standards, obligations or commitments, whether written or unwritten, are within the scope of Section 3 of this MOU.

30. SOLE AGREEMENT
A. The policies which are collected in this MOU constitute the entirety of the policies which are subject to the meet and confer obligation as agreed to by the parties. To the extent that any other agreement should be in conflict with these policies, these policies shall prevail.

B. If, during its term, the parties hereto should mutually agree to modify, amend or alter the provisions of the MOU in any respect, any such change shall be effective only if, and when, reduced to writing and executed by the authorized representatives of the CITY and the UNIT. Any such changes validly made shall become a part of this MOU and subject to its term.

C. The CITY shall pay all costs associated with members of the UNIT obtaining and maintaining special vehicle operator’s licenses, EMT/First Responder licenses, and all inoculations required by the CITY.

20 31. RESIDENCY POLICY
The CITY and UNIT agree that the Residency Policy is applicable to all UNIT members hired after January 1, 2018, as shown in Exhibit “D”.

32. SAVINGS CLAUSE
In the event that any of the policies contained in this MOU should be declared by a court of competent jurisdiction to be unenforceable or illegal, that policy, or set of policies, shall be declared void.

However, this action shall in no way invalidate the remaining policies contained in this MOU.

Should a policy within the MOU become void as outlines above, either the CITY or the UNIT may institute the meet and confer process in regard to instituting a substitute item.

33. TERM OF THE MEMORANDUM OF UNDERSTANDING
This MOU shall remain in effect for the period of July 1, 2025, through and including June 30, 2026, or until a successor agreement is reached, unless a specific provisions of this MOU shall not, however, take effect until ratified by both the City Council of the City of Susanville and the general membership of the bargaining unit.

The provision of this MOU shall not be altered, amended, or added to except by the mutual written agreement of the CITY and the UNIT. Either party may request the other to consider changes in provisions of the MOU; such requests must be in writing. Neither party is, however, obligated to agree to re-initiate the meet and confer process unless specific provisions of the Federal Fair Labors Standards Act are amended to impact or alter the provisions of this MOU. Dated this 19th day of November 2025.

21 34. SIGNATURES

CITY OF SUSANVILLE OPERATING ENGINEERS LOCAL
UNION NO. 3, FIRE FIGHERS
________________________________ ________________________________ Mendy Schuster, Mayor Art Frolli, Business Representative ________________________________ ________________________________ Dan Newton, City Manager Leon Myers, UNIT Steward
ATTEST:
________________________________ ________________________________ Heidi Clerk, City Clerk Zachary Hoffman, UNIT Steward
APPROVED AS TO FORM:
________________________________
Margaret Long, City Attorney

22 EXHIBIT A

FIREFIGHTERS POSITION CLASSIFICATION
July 1, 2025 through and including November 21, 2025

POSITION INCENTIVE
LEVEL
SALARY
MATRIX
RANGE
7 YEAR

LONGEVITY
(2.5% salary
matrix increase)
10 YEAR

LONGEVITY
(2.5% salary
matrix increase)

FIREFIGHTER I
BASE 129 130 131
LEVEL I 130 131 132
LEVEL II 131 132 133
LEVEL III 132 133 134

FIREFIGHTER
II
BASE 132 133 137
LEVEL I 133 134 138
LEVEL II 134 135 139
LEVEL III 135 136 140
FIRE

APPARATUS

ENGINEER
BASE 137 138 139
LEVEL I 138 139 140
LEVEL II 139 140 141
LEVEL III 140 141 142

FIRE CAPTAIN
BASE 141 142 143
LEVEL I 142 143 144
LEVEL II 143 144 145
LEVEL III 144 145 146

ASSISTANT

FIRE CHIEF
BASE 145 146 147
LEVEL I 146 147 148
LEVEL II 147 148 149
LEVEL III 148 149 150

23 EXHIBIT B

FIREFIGHTERSPOSITION CLASSIFICATION
November 22, 2025 through and including January 2, 2026

POSITION INCENTIVE
LEVEL
SALARY
MATRIX
RANGE
7 YEAR

LONGEVITY
(2.5% salary
matrix increase)
10 YEAR

LONGEVITY
(2.5% salary
matrix increase)
15 YEAR

LONGEVITY
(2.5% salary
matrix increase)

FIREFIGHTER I
Effective November 22, 2025
BASE 131 132 133 134
LEVEL I 132 133 134 135
LEVEL II 133 134 135 136
LEVEL III 134 135 136 137

FIREFIGHTER
II
BASE 134 135 136 137
LEVEL I 135 136 137 138
LEVEL II 136 137 138 139
LEVEL III 137 138 139 140
FIRE

APPARATUS

ENGINEER
BASE 139 140 141 142
LEVEL I 140 141 142 143
LEVEL II 141 142 143 144
LEVEL III 142 143 144 145

FIRE CAPTAIN
BASE 143 144 145 146
LEVEL I 144 145 146 147
LEVEL II 145 146 147 148
LEVEL III 146 147 148 149

ASSISTANT

FIRE CHIEF
BASE 147 148 149 150
LEVEL I 148 149 150 151
LEVEL II 149 150 151 152
LEVEL III 150 151 152 153

24 EXHIBIT C

FIREFIGHTERS POSITION CLASSIFICATION
January 3, 2026 through and including June 30, 2026

POSITION INCENTIVE
LEVEL
SALARY
MATRIX
RANGE
7 YEAR

LONGEVITY
(2.5% salary
matrix increase)
10 YEAR

LONGEVITY
(2.5% salary
matrix increase)
15 YEAR

LONGEVITY
(2.5% salary
matrix increase)

FIREFIGHTER I
Effective January 3, 2026
BASE 132 133 134 135
LEVEL I 133 134 135 136
LEVEL II 134 135 136 137
LEVEL III 135 136 137 138

FIREFIGHTER II
BASE 134 135 136 137
LEVEL I 135 136 137 138
LEVEL II 136 137 138 139
LEVEL III 137 138 139 140
FIRE

APPARATUS

ENGINEER
BASE 139 140 141 142
LEVEL I 140 141 142 143
LEVEL II 141 142 143 144
LEVEL III 142 143 144 145

FIRE CAPTAIN
BASE 143 144 145 146
LEVEL I 144 145 146 147
LEVEL II 145 146 147 148
LEVEL III 146 147 148 149

ASSISTANT

FIRE CHIEF
BASE 147 148 149 150
LEVEL I 148 149 150 151
LEVEL II 149 150 151 152
LEVEL III 150 151 152 153

25 April 5, 2017

EXHIBIT D

CITY OF SUSANVILLE
Residency Policy for Employees with Emergency/Urgent Response Duties Adopted _____________________, Last Updated ______________________

1. Introduction
This policy establishes a requirement for all employees in the below-mentioned job categories to reside within a reasonable proximity to their place of employment to allow them to respond within the timeframes set forth below. This policy applies to employees in the below-mentioned job categories hired by the City of Susanville after this policy takes effect and to current employees of the City of Susanville in the belowmentioned job categories if the current employee changes his or her residence after this policy takes effect.

The job categories for which this policy applies are:

A. All sworn officers working for the City of Susanville Police Department. This includes but is not limited to: full-time sworn officers (including supervisors), part-time sworn officers and reserve officers.

B. All City of Susanville Fire Department personnel (including supervisors).

C. All City of Susanville Public Works personnel (including supervisors).

2. Requirements
The following requirements apply to each employee hired by the City of Susanville after this policy takes effect in the above-mentioned job categories and to current employees in the above-mentioned job categories if the current employee changes his or her residence after this policy takes effect.

A. For purposes of this policy, RESIDENCE means the house or other fixed abode where the employee lives full time, the address of which the employee must have on file with the City.

B. The RESIDENCE of the employee must be within a 35-minute drive of the department office applicable to the employee's employment with the City. For example, public works employees' department office will be the public works department office.

26 C. The drive time of the employee will be determined by entering the address of the employee residence and the location of his or her respective department office in the City of Susanville into an internet based mapping system selected at the sole discretion of the City, such as Google Maps assuming fairwhether driving conditions. A copy of the printout of the mapping system showing drive time from the department office to the residence will be kept by the City.

D. When instructed by his or her employer or supervisor, each employee must respond to an emergency or urgent situation connected to his or her employment with the City of Susanville. An exception to this requirement is when the employee is on a previously authorized vacation or other approved leave, or has traveled outside of a 100-mile radius of the department office applicable to that City employee.

E. Employees will be compensated as currently outlined in their respective Memorandum of Understanding and Employee Handbook and will not be eligible for any additional compensation as a result of these requirements.

3. Purpose
The above-mentioned job categories include critical job functions that require the employees who perform the jobs to respond to emergency or urgent situations connected to their employment with the City of Susanville. From time to time, emergency or urgent situations arise and additional employees must be called to assist with the urgent or emergency situation. The City of Susanville is located in the high desert and weather conditions such as rain, snow, ice and wind cause road closures, making it difficult for employees to report to their place of employment at various times throughout the year if the location of the employee's RESIDENCE requires too much time to arrive at the worksite. Varied road types including but not limited to mountain passes, unmaintained dirt roads and steep windy roads surrounding the City of Susanville make it necessary for the proximity of the employee to his or her place of employment or the city limits to be measured in drive time and not miles. To protect the health, safety and welfare of the people and property within the City of Susanville during emergencies or urgent situations, employees with the above-mentioned job descriptions must be able to respond to an emergency or urgent situation within a reasonable time. Requiring future employees or current employees who change their residence after this policy takes effect to live within a 35-minute drive of his or her place of employment best serves the legitimate interests of the City.

4. Violation of Policy
Violation of this policy will result in a notice to cure the violation within 30 days. Failure to cure the violation within 30 days will result in termination of employment within 14 days of the deadline to cure the violation.

27 EXHIBIT E
Susanville Fire Department
48/96 Shift Schedule Pilot
Measurable Metrics

1. Increase in efficiency-labor increase 18% per shift, per month:

The Department will monitor and report on efficiency changes per the agreed upon schedule.

2. Improved employee morale during evaluation period:

The Department will evaluate and report on all employees’ morale prior to implementation and again at the close of evaluation period. Employee support for the 48/96 schedule will be evaluated based on the continued 100% support from the Unit.

3. Company Training will increase to existing average, 4 hours per shift, per month:

The Department will evaluate and report company training hours per the agreed upon schedule.

4. Overtime Costs:

The Department will monitor and report on overtime costs to determine if the new schedule has any impacts using a 5-year trend

5. Sick Leave:

The Department will monitor and report the use of sick leave to determine if the new schedule has any impacts using a 5-year trend. (Workers Comp will be removed from the trend)

6. Shift Communications:

The Department will monitor and report the impact of the new schedule with respect to shift communication using project monitoring and completion on set deadlines.

7. Training of Volunteers will increase to existing average, 2 hours per shift, per month:

The Department will monitor and report to determine if the new schedule has any effect on call back attendance and turnout times using a 5-year trend.

8. Call back attendance and turnout times:

The Department will monitor and report to determine if the new schedule has any effect on call back attendance and turnout times using a 5-year trend.

9. Vehicle Accidents:

The Department will monitor and report if the new schedule has any impact with respect to vehicle accidents using a 5-year trend.

10. Work Comp Claims:

The Department will monitor and report if the new schedule has any impacts with respect to work claims using a 5-year trend.

STEP STEP STEP STEP STEP STEP STEP STEP

A B C D E F G H
101 856.97 899.82 944.81 992.05 1041.66 1093.74 1148.42 1205.85 102 878.40 922.32 968.43 1016.85 1067.70 1121.08 1177.14 1235.99 103 900.36 945.37 992.64 1042.28 1094.39 1149.11 1206.56 1266.89 104 922.87 969.01 1017.46 1068.33 1121.75 1177.84 1236.73 1298.56 105 945.94 993.23 1042.90 1095.04 1149.79 1207.28 1267.65 1331.03 106 969.59 1018.06 1068.97 1122.42 1178.54 1237.46 1299.34 1364.30 107 993.83 1043.52 1095.69 1150.48 1208.00 1268.40 1331.82 1398.41 108 1018.67 1069.60 1123.08 1179.24 1238.20 1300.11 1365.12 1433.37 109 1044.14 1096.34 1151.16 1208.72 1269.16 1332.61 1399.24 1469.21 110 1070.24 1123.75 1179.94 1238.94 1300.88 1365.93 1434.23 1505.94 111 1097.00 1151.85 1209.44 1269.91 1333.41 1400.08 1470.08 1543.58 112 1124.42 1180.64 1239.68 1301.66 1366.74 1435.08 1506.83 1582.17 113 1152.53 1210.16 1270.67 1334.20 1400.91 1470.96 1544.50 1621.73 114 1181.35 1240.41 1302.43 1367.56 1435.93 1507.73 1583.12 1662.27 115 1210.88 1271.42 1334.99 1401.74 1471.83 1545.42 1622.69 1703.83 116 1241.15 1303.21 1368.37 1436.79 1508.63 1584.06 1663.26 1746.42 117 1272.18 1335.79 1402.58 1472.71 1546.34 1623.66 1704.84 1790.09 118 1303.98 1369.18 1437.64 1509.53 1585.00 1664.25 1747.46 1834.84 119 1336.58 1403.41 1473.58 1547.26 1624.63 1705.86 1791.15 1880.71 120 1370.00 1438.50 1510.42 1585.94 1665.24 1748.50 1835.93 1927.73 121 1404.25 1474.46 1548.18 1625.59 1706.87 1792.22 1881.83 1975.92 122 1439.35 1511.32 1586.89 1666.23 1749.54 1837.02 1928.87 2025.32 123 1475.34 1549.11 1626.56 1707.89 1793.28 1882.95 1977.10 2075.95 124 1512.22 1587.83 1667.23 1750.59 1838.12 1930.02 2026.52 2127.85 125 1550.03 1627.53 1708.91 1794.35 1884.07 1978.27 2077.19 2181.04 126 1588.78 1668.22 1751.63 1839.21 1931.17 2027.73 2129.12 2235.57 127 1628.50 1709.92 1795.42 1885.19 1979.45 2078.42 2182.34 2291.46 128 1669.21 1752.67 1840.30 1932.32 2028.94 2130.38 2236.90 2348.75 129 1710.94 1796.49 1886.31 1980.63 2079.66 2183.64 2292.82 2407.47 130 1753.71 1841.40 1933.47 2030.14 2131.65 2238.23 2350.14 2467.65 131 1797.56 1887.44 1981.81 2080.90 2184.94 2294.19 2408.90 2529.34 132 1842.50 1934.62 2031.35 2132.92 2239.57 2351.54 2469.12 2592.58 133 1888.56 1982.99 2082.14 2186.24 2295.55 2410.33 2530.85 2657.39 134 1935.77 2032.56 2134.19 2240.90 2352.94 2470.59 2594.12 2723.83 135 1984.17 2083.38 2187.54 2296.92 2411.77 2532.36 2658.97 2791.92 136 2033.77 2135.46 2242.23 2354.34 2472.06 2595.66 2725.45 2861.72 137 2084.62 2188.85 2298.29 2413.20 2533.86 2660.56 2793.58 2933.26 138 2136.73 2243.57 2355.75 2473.53 2597.21 2727.07 2863.42 3006.59 139 2190.15 2299.66 2414.64 2535.37 2662.14 2795.25 2935.01 3081.76 140 2244.90 2357.15 2475.01 2598.76 2728.69 2865.13 3008.38 3158.80 141 2301.03 2416.08 2536.88 2663.72 2796.91 2936.76 3083.59 3237.77 142 2358.55 2476.48 2600.30 2730.32 2866.83 3010.17 3160.68 3318.72 143 2417.51 2538.39 2665.31 2798.58 2938.50 3085.43 3239.70 3401.69 144 2477.95 2601.85 2731.94 2868.54 3011.97 3162.56 3320.69 3486.73 145 2539.90 2666.90 2800.24 2940.25 3087.27 3241.63 3403.71 3573.90 146 2603.40 2733.57 2870.25 3013.76 3164.45 3322.67 3488.80 3663.24 147 2668.48 2801.91 2942.00 3089.10 3243.56 3405.74 3576.02 3754.82 148 2735.20 2871.96 3015.55 3166.33 3324.65 3490.88 3665.42 3848.70 149 2803.58 2943.75 3090.94 3245.49 3407.76 3578.15 3757.06 3944.91 150 2873.67 3017.35 3168.22 3326.63 3492.96 3667.61 3850.99 4043.54 151 2945.51 3092.78 3247.42 3409.79 3580.28 3759.30 3947.26 4144.62 152 3019.14 3170.10 3328.61 3495.04 3669.79 3853.28 4045.94 4248.24 153 3094.62 3249.35 3411.82 3582.41 3761.53 3949.61 4147.09 4354.45 154 3171.99 3330.59 3497.12 3671.97 3855.57 4048.35 4250.77 4463.31 155 3251.29 3413.85 3584.55 3763.77 3951.96 4149.56 4357.04 4574.89 156 3332.57 3499.20 3674.16 3857.87 4050.76 4253.30 4465.96 4689.26 157 3415.88 3586.68 3766.01 3954.31 4152.03 4359.63 4577.61 4806.49 158 3501.28 3676.35 3860.16 4053.17 4255.83 4468.62 4692.05 4926.66 159 3588.81 3768.25 3956.67 4154.50 4362.23 4580.34 4809.35 5049.82 160 3678.53 3862.46 4055.58 4258.36 4471.28 4694.85 4929.59 5176.07 161 3770.50 3959.02 4156.97 4364.82 4583.06 4812.22 5052.83 5305.47 162 3864.76 4058.00 4260.90 4473.94 4697.64 4932.52 5179.15 5438.11 163 3961.38 4159.45 4367.42 4585.79 4815.08 5055.84 5308.63 5574.06 164 4060.41 4263.43 4476.61 4700.44 4935.46 5182.23 5441.34 5713.41 165 4161.92 4370.02 4588.52 4817.95 5058.84 5311.79 5577.38 5856.24 166 4265.97 4479.27 4703.23 4938.40 5185.32 5444.58 5716.81 6002.65 167 4372.62 4591.25 4820.81 5061.86 5314.95 5580.70 5859.73 6152.72 168 4481.94 4706.03 4941.34 5188.40 5447.82 5720.21 6006.22 6306.54 169 4593.99 4823.68 5064.87 5318.11 5584.02 5863.22 6156.38 6464.20 170 4708.83 4944.28 5191.49 5451.06 5723.62 6009.80 6310.29 6625.80 171 4826.56 5067.88 5321.28 5587.34 5866.71 6160.04 6468.05 6791.45 172 4947.22 5194.58 5454.31 5727.03 6013.38 6314.05 6629.75 6961.23 173 5070.90 5324.45 5590.67 5870.20 6163.71 6471.90 6795.49 7135.27 174 5197.67 5457.56 5730.43 6016.96 6317.80 6633.69 6965.38 7313.65 175 5327.61 5594.00 5873.69 6167.38 6475.75 6799.54 7139.51 7496.49 176 5460.80 5733.85 6020.54 6321.56 6637.64 6969.52 7318.00 7683.90 177 5597.32 5877.19 6171.05 6479.60 6803.58 7143.76 7500.95 7876.00 178 5737.26 6024.12 6325.33 6641.59 6973.67 7322.36 7688.47 8072.90 179 5880.69 6174.72 6483.46 6807.63 7148.01 7505.42 7880.69 8274.72 180 6027.71 6329.09 6645.55 6977.82 7326.72 7693.05 8077.70 8481.59 181 6178.40 6487.32 6811.69 7152.27 7509.88 7885.38 8279.65 8693.63 182 6332.86 6649.50 6981.98 7331.08 7697.63 8082.51 8486.64 8910.97 183 6491.18 6815.74 7156.53 7514.35 7890.07 8284.57 8698.80 9133.74 184 6653.46 6986.13 7335.44 7702.21 8087.32 8491.69 8916.27 9362.09 185 6819.80 7160.79 7518.83 7894.77 8289.51 8703.98 9139.18 9596.14 186 6990.29 7339.81 7706.80 8092.14 8496.74 8921.58 9367.66 9836.04 187 7165.05 7523.30 7899.47 8294.44 8709.16 9144.62 9601.85 10081.94 188 7344.18 7711.38 8096.95 8501.80 8926.89 9373.24 9841.90 10333.99 189 7527.78 7904.17 8299.38 8714.35 9150.06 9607.57 10087.94 10592.34 190 7715.97 8101.77 8506.86 8932.20 9378.81 9847.76 10340.14 10857.15 191 7908.87 8304.32 8719.53 9155.51 9613.29 10093.95 10598.65 11128.58 192 8106.60 8511.93 8937.52 9384.40 9853.62 10346.30 10863.61 11406.79 193 8309.26 8724.72 9160.96 9619.01 10099.96 10604.96 11135.20 11691.96 194 8516.99 8942.84 9389.98 9859.48 10352.46 10870.08 11413.58 11984.26 195 8729.92 9166.41 9624.73 10105.97 10611.27 11141.83 11698.92 12283.87 196 8948.16 9395.57 9865.35 10358.62 10876.55 11420.38 11991.40 12590.97 197 9171.87 9630.46 10111.99 10617.58 11148.46 11705.89 12291.18 12905.74 198 9401.17 9871.22 10364.78 10883.02 11427.18 11998.53 12598.46 13228.38 199 9636.19 10118.00 10623.90 11155.10 11712.85 12298.50 12913.42 13559.09 200 9877.10 10370.95 10889.50 11433.98 12005.68 12605.96 13236.26 13898.07

CITY OF SUSANVILLE FIREFIGHTERS BI-WEEKLY GLOBAL RANGE AND STEP MATRIX JULY 1, 2025 THROUGH AND INCLUDING NOVEMBER 21, 2025
BI-WEEKLY - 26 PAY PERIODS PER YEAR
RANGE

EXHIBIT F
28

STEP STEP STEP STEP STEP STEP STEP STEP

A B C D E F G H
101 882.68 926.82 973.16 1021.81 1072.90 1126.55 1182.88 1242.02 102 904.75 949.99 997.49 1047.36 1099.73 1154.71 1212.45 1273.07 103 927.37 973.74 1027.41 1073.54 1127.22 1183.58 1242.76 1304.90 104 950.55 998.08 1058.23 1100.38 1155.40 1213.17 1273.83 1337.52 105 974.32 1023.03 1089.98 1127.89 1184.29 1243.50 1305.68 1370.96 106 998.67 1048.61 1122.68 1156.09 1213.89 1274.59 1338.32 1405.23 107 1023.64 1074.82 1156.36 1184.99 1244.24 1306.45 1371.78 1440.36 108 1049.23 1101.69 1191.05 1214.62 1275.35 1339.11 1406.07 1476.37 109 1075.46 1129.23 1226.78 1244.98 1307.23 1372.59 1441.22 1513.28 110 1102.35 1157.47 1263.58 1276.11 1339.91 1406.91 1477.25 1551.11 111 1129.91 1186.40 1301.49 1308.01 1373.41 1442.08 1514.18 1589.89 112 1158.15 1216.06 1340.54 1340.71 1407.74 1478.13 1552.04 1629.64 113 1187.11 1246.46 1380.75 1374.23 1442.94 1515.08 1590.84 1670.38 114 1216.79 1277.63 1422.18 1408.58 1479.01 1552.96 1630.61 1712.14 115 1247.21 1309.57 1464.84 1443.80 1515.99 1591.79 1671.37 1754.94 116 1278.39 1342.31 1508.79 1479.89 1553.89 1631.58 1713.16 1798.82 117 1310.35 1375.86 1554.05 1516.89 1592.73 1672.37 1755.99 1843.79 118 1343.10 1410.26 1600.67 1554.81 1632.55 1714.18 1799.89 1889.88 119 1376.68 1445.52 1648.69 1593.68 1673.37 1757.03 1844.89 1937.13 120 1411.10 1481.65 1698.15 1633.52 1715.20 1800.96 1891.01 1985.56 121 1446.38 1518.70 1749.10 1674.36 1758.08 1845.98 1938.28 2035.20 122 1482.54 1556.66 1801.57 1716.22 1802.03 1892.13 1986.74 2086.08 123 1519.60 1595.58 1855.62 1759.13 1847.08 1939.44 2036.41 2138.23 124 1557.59 1635.47 1911.28 1803.10 1893.26 1987.92 2087.32 2191.68 125 1596.53 1676.36 1968.62 1848.18 1940.59 2037.62 2139.50 2246.48 126 1636.44 1718.26 2027.68 1894.39 1989.11 2088.56 2192.99 2302.64 127 1677.35 1761.22 2088.51 1941.75 2038.83 2140.77 2247.81 2360.20 128 1719.29 1805.25 2151.17 1990.29 2089.80 2194.29 2304.01 2419.21 129 1762.27 1850.38 2215.70 2040.05 2142.05 2249.15 2361.61 2479.69 130 1806.33 1896.64 2282.17 2091.05 2195.60 2305.38 2420.65 2541.68 131 1851.48 1944.06 2350.64 2143.32 2250.49 2363.01 2481.17 2605.22 132 1897.77 1992.66 2421.16 2196.91 2306.75 2422.09 2543.19 2670.35 133 1945.22 2042.48 2493.79 2251.83 2364.42 2482.64 2606.77 2737.11 134 1993.85 2093.54 2568.61 2308.13 2423.53 2544.71 2671.94 2805.54 135 2043.69 2145.88 2645.66 2365.83 2484.12 2608.33 2738.74 2875.68 136 2094.78 2199.52 2725.03 2424.97 2546.22 2673.53 2807.21 2947.57 137 2147.15 2254.51 2806.79 2485.60 2609.88 2740.37 2877.39 3021.26 138 2200.83 2310.87 2890.99 2547.74 2675.13 2808.88 2949.33 3096.79 139 2255.85 2368.65 2977.72 2611.43 2742.00 2879.10 3023.06 3174.21 140 2312.25 2427.86 3067.05 2676.72 2810.55 2951.08 3098.64 3253.57 141 2370.06 2488.56 3159.06 2743.64 2880.82 3024.86 3176.10 3334.91 142 2429.31 2550.77 3253.83 2812.23 2952.84 3100.48 3255.50 3418.28 143 2490.04 2614.54 3351.45 2882.53 3026.66 3177.99 3336.89 3503.74 144 2552.29 2679.91 3451.99 2954.60 3102.33 3257.44 3420.31 3591.33 145 2616.10 2746.90 3555.55 3028.46 3179.88 3338.88 3505.82 3681.11 146 2681.50 2815.58 3662.22 3104.17 3259.38 3422.35 3593.47 3773.14 147 2748.54 2885.97 3772.09 3181.78 3340.87 3507.91 3683.30 3867.47 148 2817.25 2958.11 3885.25 3261.32 3424.39 3595.61 3775.39 3964.16 149 2887.68 3032.07 4001.81 3342.85 3510.00 3685.50 3869.77 4063.26 150 2959.88 3107.87 4121.86 3426.43 3597.75 3777.63 3966.52 4164.84 151 3033.87 3185.57 4245.52 3512.09 3687.69 3872.07 4065.68 4268.96 152 3109.72 3265.20 4372.88 3599.89 3779.88 3968.88 4167.32 4375.69 153 3187.46 3346.83 4504.07 3689.89 3874.38 4068.10 4271.50 4485.08 154 3267.15 3430.51 4639.19 3782.13 3971.24 4169.80 4378.29 4597.21 155 3348.83 3516.27 4778.37 3876.69 4070.52 4274.05 4487.75 4712.14 156 3432.55 3604.17 4921.72 3973.60 4172.28 4380.90 4599.94 4829.94 157 3518.36 3694.28 5069.37 4072.94 4276.59 4490.42 4714.94 4950.69 158 3606.32 3786.64 5221.45 4174.77 4383.50 4602.68 4832.81 5074.45 159 3696.48 3881.30 5378.09 4279.14 4493.09 4717.75 4953.63 5201.32 160 3788.89 3978.33 5539.43 4386.11 4605.42 4835.69 5077.48 5331.35 161 3883.61 4077.79 5705.62 4495.77 4720.56 4956.58 5204.41 5464.63 162 3980.70 4179.74 5876.79 4608.16 4838.57 5080.50 5334.52 5601.25 163 4080.22 4284.23 6053.09 4723.37 4959.53 5207.51 5467.89 5741.28 164 4182.23 4391.34 6234.68 4841.45 5083.52 5337.70 5604.58 5884.81 165 4286.78 4501.12 6421.72 4962.49 5210.61 5471.14 5744.70 6031.93 166 4393.95 4613.65 6614.38 5086.55 5340.88 5607.92 5888.31 6182.73 167 4503.80 4728.99 6812.81 5213.71 5474.40 5748.12 6035.52 6337.30 168 4616.39 4847.21 7017.19 5344.05 5611.26 5891.82 6186.41 6495.73 169 4731.80 4968.40 7227.71 5477.66 5751.54 6039.12 6341.07 6658.12 170 4850.10 5092.60 7444.54 5614.60 5895.33 6190.09 6499.60 6824.58 171 4971.35 5219.92 7667.87 5754.96 6042.71 6344.85 6662.09 6995.19 172 5095.64 5350.42 7897.91 5898.84 6193.78 6503.47 6828.64 7170.07 173 5223.03 5484.18 8134.85 6046.31 6348.62 6666.05 6999.36 7349.32 174 5353.60 5621.28 8378.89 6197.46 6507.34 6832.70 7174.34 7533.06 175 5487.44 5761.81 8630.26 6352.40 6670.02 7003.52 7353.70 7721.38 176 5624.63 5905.86 8889.17 6511.21 6836.77 7178.61 7537.54 7914.42 177 5765.24 6053.51 9155.84 6673.99 7007.69 7358.08 7725.98 8112.28 178 5909.38 6204.84 9430.52 6840.84 7182.88 7542.03 7919.13 8315.09 179 6057.11 6359.97 9713.43 7011.86 7362.46 7730.58 8117.11 8522.96 180 6208.54 6518.96 10004.84 7187.16 7546.52 7923.84 8320.03 8736.04 181 6363.75 6681.94 10304.98 7366.84 7735.18 8121.94 8528.04 8954.44 182 6522.85 6848.99 10614.13 7551.01 7928.56 8324.99 8741.24 9178.30 183 6685.92 7020.21 10932.55 7739.78 8126.77 8533.11 8959.77 9407.76 184 6853.06 7195.72 11260.53 7933.28 8329.94 8746.44 9183.76 9642.95 185 7024.39 7375.61 11598.35 8131.61 8538.19 8965.10 9413.36 9884.02 186 7200.00 7560.00 11946.30 8334.90 8751.65 9189.23 9648.69 10131.12 187 7380.00 7749.00 12304.69 8543.27 8970.44 9418.96 9889.91 10384.40 188 7564.50 7942.73 12673.83 8756.85 9194.70 9654.43 10137.15 10644.01 189 7753.61 8141.29 13054.04 8975.78 9424.57 9895.79 10390.58 10910.11 190 7947.45 8344.83 13445.66 9200.17 9660.18 10143.19 10650.35 11182.87 191 8146.14 8553.45 13849.03 9430.18 9901.68 10396.77 10916.61 11462.44 192 8349.79 8767.28 14264.50 9665.93 10149.23 10656.69 11189.52 11749.00 193 8558.54 8986.46 14692.44 9907.58 10402.96 10923.10 11469.26 12042.72 194 8772.50 9211.13 15133.21 10155.27 10663.03 11196.18 11755.99 12343.79 195 8991.81 9441.40 15587.21 10409.15 10929.61 11476.09 12049.89 12652.39 196 9216.61 9677.44 16054.82 10669.38 11202.85 11762.99 12351.14 12968.69 197 9447.02 9919.38 16536.47 10936.11 11482.92 12057.06 12659.92 13292.91 198 9683.20 10167.36 17032.56 11209.51 11769.99 12358.49 12976.41 13625.24 199 9925.28 10421.54 17543.54 11489.75 12064.24 12667.45 13300.82 13965.87 200 10173.41 10682.08 18069.85 11777.00 12365.85 12984.14 13633.35 14315.01

CITY OF SUSANVILLE FIREFIGHTERS BI-WEEKLY GLOBAL RANGE AND STEP MATRIX November 22, 2025 - June 30, 2026
BI-WEEKLY - 26 PAY PERIODS PER YEAR
RANGE

EXHIBIT G
29

Agenda Item No. 7.A.

Standard Review
Susanville City Council Agenda Item
Submitted By: Ruth McElrath, Permit Technician
Action Date: November 19, 2025
Subject: Consider Ordinance No. 25-1050, Amending certain Sections of Chapter 04 of Title 15 Building and Construction, of the Susanville Municipal Code to reflect the adoption of the California Building Standards Code, 2025 Title 24 edition Chapters 1-12 and referenced Appendices.

Presented By: Erik Edholm, Asst. Director - Engineering Summary: Every three years, the State of California updates the California Building Standards Code Title 24 and requires its use by all local jurisdictions issuing building permits. The 2025 building standards code goes into effect on January 1, 2026, and will become effective by the City on that date. The ordinance before the City Council will adopt the 2025 California Building Standards Code Title 24 Chapters 1-12 and referenced appendices and will amend Title 15 of the Susanville Municipal Code. The 12 chapters that make up the title 24 building standards code are:
• California Building Code, 2025 edition
• California Administrative Code, 2025 edition
• California Residential Building Code, 2025 edition
• California Energy Code, 2025 edition
• California Electrical Code, 2025 edition
• California Mechanical Code, 2025 edition
• California Plumbing Code, 2025 edition
• California Green Building Standard, edition
• California Existing Building Code - Historical buildings • California Fire Code, 2025 edition
• California Wildland-Urban Interface Code, 2025 edition • California Referenced Standards codes
New for the 2025 code cycle is the adoption of the 2025 California Wildland Urban (WUI) Interface Code, which replaces the previous WUI provisions scattered among other California Codes and the International Wildland-Urban Interface Code sections creating a single location for all WUI regulations.

In addition, there are appendices to assist with the implementation of the code. While these are not mandated by the state, they are

provided for use if the local jurisdiction specifically adopts them.

Some appendixes benefit one community, but not another. The City building official and acting assistant fire chief have reviewed all appendices and agree on those being adopted for the City of Susanville. The appendixes to be adopted as part of the Susanville Municipal Code are:

California Building Code appendices:

Appendix C – Group U- Agricultural buildings. While the City of Susanville does not have many agricultural buildings it is important to have the appropriate codes in place for future and existing structures. Agricultural also include greenhouses and sheds.

Appendix G – Flood resistant construction. Appendix G is a supplemental Flood Resistant Construction code to the city’s flood plain ordinance.

Appendix H - Signs. Appendix H contains the construction standards for signs.

Appendix I - Patio covers. Patio covers are outdoor living areas used for recreation. They cannot be used for a carport, garage, or habitable room.

Appendix J – Grading. Appendix J applies to the grading, excavation and earthwork construction, including fills and embankments.

California Residential Code appendices
Appendix BF - This appendix is for patio covers attached to one and two-family dwellings.

Appendix CI - Swimming Pool Safety Act. This appendix provides the language of the Swimming Pool Safety Act for the code user’s convenience.

California Electrical Code appendices
Annex C – Conduit, tubing and cable tray fill tables for conductors and fixture wires of the same size. Annex C provides conduit material and sizing for various applications and wire configurations.

California Mechanical Code appendices
Appendix B – Procedures to place gas equipment in operation.

Appendix B provides procedures for adjusting natural gas burning equipment.

Appendix C – Installation and testing of oil fuel fired equipment.

This appendix governs the installation, testing or repair of liquid fuel burning systems or equipment.

California Plumbing Code appendices
Appendix A - Recommended Rules for Sizing Water Supply
Systems. Appendix A of the plumbing code provides methodology for determining the correct sizing of water pipe sizes.

Appendix B – Combination Waste and Vent Systems. Appendix B provides explanatory notes for combined waste and vent systems.

This will assist both inspectors and plumbers in the design and installation of these special pluming systems.

Appendix I – Installation Standards for PEX Tubing Systems.

Appendix I provides the installation requirements for cross-linked

polyethylene PEX tubing for hot and cold water distribution systems.

California Fire Code appendices
Appendix Chapter 4 - The provisions of this chapter provide special requirements based on use and occupancy such as 24- hour care facilities.

Appendix B – Fire Flow Requirements for Buildings. Appendix B contains procedures for determining fire flow requirements for buildings.

Appendix BB – Fire Flow Requirements for Buildings. This appendix provides fire-flow requirements for schools
Appendix C – Fire Hydrant Locations and Distribution. This appendix provides fire hydrant locations and distribution.

Appendix CC - Fire hydrants shall be provided in accordance with this appendix for any school buildings or portions thereof.

Appendix D – Fire Apparatus Access Roads. Fire apparatus access roads shall be in accordance with the standards set forth in this appendix.

Appendix E – Hazard Categories. This appendix provides
information, explanations and examples to illustrate and clarify the hazard categories contained in the code.

Appendix F - Hazard Ranking. Assignment of levels to be applied to specific hazard classes as required by NFPA 704.

Appendix G – Cryogenic Fluids. Appendix G is a conversion table used to calculate when cryogenic fluids are changed from liquid into gas.

Appendix H – Hazardous Materials Management Plan (HMMP) and Hazardous Materials Inventory Statement (HMIS) Instruction.

Appendix H assists businesses in establishing a HMMP and Hazardous Materials Inventory Statement based on the
classification and quantities of materials that would be found onsite, in storage or in use.

Appendix I – Fire Protection Systems- Noncompliant Conditions.

This appendix is intended to identify conditions that can occur when fire protection systems are not properly maintained or have been damaged.

Appendix J – Building Information Signs. Appendix J specifies the location, placement and lettering size for building information signs which give information on construction type, fire protection system, occupancy type and hazard content. It is a fire tool to be utilized in the crucial initial response of the firefighters to a structure fire.

Appendix K – Construction Requirements for Existing Ambulatory Care Facilities. Appendix K provides a minimum degree of fire and life safety to persons occupying an existing building containing ambulatory facilities where such buildings don’t comply with the minimum requirements of the building code.

Appendix L – Requirements for Firefighter Air Replenishment Systems. Appendix L provides for the design, installation and maintenance of permanently installed firefighter breathing air systems in buildings designated by the jurisdiction.

Appendix M High Rise Buildings – Retroactive Automatic Sprinkler Requirement.

Appendix N – Indoor Trade Shows and Exhibitions. Appendix N was created to address the hazards associated with larger, complex trade shows and exhibitions.

Appendix O – Valet trash and recycling collection in Group R-2 occupancies. Appendix O provides requirements to facilitate the enforcement of safety requirements for valet trash and recycling collection services in Group R-2 occupancies.

Appendix P- Temporary Haunted Houses, Ghost Walks and
Similar Amusement Uses. Appendix P applies to temporary uses such as haunted houses and ghost walks where decorative materials and confusing sounds and/or visual effects are present.

Appendix Q - Community Wildland-Urban Interface (WUI) Fire Hazard Evaluation Framework. Appendix Q is a tool meant to enable communities to collect, assemble and represent the associated risks within the Wildland Urban Interface fire area (WUI).

Fiscal Impact: None
Action Requested: Motion to waive the first reading and introduce Ordinance No. 25- 1050.

Attachments:

1. 25-1050 2025 Building Code Adoption

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ORDINANCE NO. 25-1050

AN ORDINANCE OF THE CITY OF SUSANVILLE
AMENDING CERTAIN SECTIONS OF CHAPTER 04 OF TITLE 15 BUILDING AND

CONSTRUCTION, OF THE SUSANVILLE MUNICIPAL CODE TO REFLECT THE ADOPTION OF THE CALIFORNIA BUILDING STANDARDS CODE, 2025 TITLE 24 EDITION CHAPTERS 1-12 AND REFERENCED APPENDICES
WHEREAS, the City of Susanville is required by law to enforce the provisions of the California Building Standards Code, 2025 Edition of the California Code of Regulations (CCR), Title 24 Chapters 1-12 adopted by the California Building Standards Commission, on or around July 1, 2025, which is effective on January 1, 2026; and WHEREAS, This ordinance is enacted pursuant to Government Code §50022.2 and Health and Safety Code §18941.5, and regulates all new construction, alternations, repairs, relocations, reconstruction or demolition of any building or any portion thereof including any electrical, mechanical, gas, plumbing or fire protection equipment installed on any property or used on or within any building within the City of Susanville; and WHEREAS, The City of Susanville proposes adopting by reference Appendix C, G, H, I and J of the California Building Code 2025 edition, Adoption of Appendix BF and CI of the California Residential Code 2025 edition, Adoption of Annex C of the California Electrical Code, 2025 edition, Adoption of Appendix B and C of the California Mechanical Code 2025 edition, Adoption of Appendix A, C and I of the California Plumbing Code 2025 edition, Adoption of Appendix B, BB, C, CC, D, E, F, G, H, I, J, K, L, M, N, O, P, Q and Appendix Chapter 4 of the California Fire Code, 2025 edition; and
The City Council of the City of Susanville does ordain as follows:

Section 1:

City of Susanville Municipal Code: Title 15 Building and Construction, Chapter 04 Sections

15.04.010, 15.04.020, 15.04.030, 15.04.040, 15.04.050, 15.04.060 and 15.04.070 shall hereby amended to read as follows:

Chapter 15.04 Building Standards Code
Section 15.04.010 California Building Standards Code - Adopted by reference The California Building Standards Code, 2025 Edition Title 24, chapters 1-2 adopted by the California Building Standards Commission, including amendments, appendices, annexes, attachments and modifications included in Title 15 Buildings and Construction of the city of Susanville Municipal Code is adopted as the building code of the city and one certified copy thereof shall be kept in the office of the building official.

Section 15.04.020 California Building Code appendices – Adopted by reference.

Appendices C, G, H, I and J of the California Building Code, 2025 Edition, are adopted as part of the building code of the city.

Section 15.04.030 California Residential Building Code appendices – Adoption by reference.

Appendix BF and CI of the California Residential Building Code, 2025 Edition, is adopted as part of the building code of the city.

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Section 15.04.040 California Electrical Code appendices - Adopted by reference.

Annex C of the California Electrical Code, 2025 Edition, is adopted as part of the building code of the city.

Section 15.04.050 California Mechanical Code appendices – Adopted by reference.

Appendices B and C of the California Mechanical Code, 2025 Edition, are adopted as part of the building code of the city.

Section 15.04.060 California Plumbing Code appendices- Adopted by reference.

A. Appendices A, C and I of the California Mechanical Code, 2025 Edition, are adopted as part of the building code of the city.

B. A pressure expansion tank with a minimum acceptance capacity of one gallon shall be installed in every new potable water system connected to the city’s water system.

Additionally, when a water heater is replaced and there is not an expansion tank present one shall be installed.

C. A pressure regulator in compliance with California Plumbing Code, 2025 and with a maximum supply pressure setting of 80psi shall be installed in each water system where the City determines that there may be the potential for excess water pressure.

D. All proposed gray water systems shall require planning division use permit approval prior to issuance of a plumbing permit.

Section 15.04.070 California Fire Code Appendices - Adopted by reference.

Appendices B, BB, C, CC, D, E, F, G, H, I, J, K, L, M, N, O, P, Q and Appendix Chapter 4 of the California Fire Code, 2025 Edition, are adopted as part of the fire code of the city.

Section 3: The City Clerk shall, within fifteen days after its passage, cause this Ordinance to be published at least once in the InterMountain News, an adjudicated newspaper of general circulation, published and circulated within the City.

Section 4: If any section, subsection, sentence, clause or phrase of this Ordinance is, for any reason, held to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this Ordinance, it being expressly declared that this Ordinance and each section, subsection, clause and phrase hereof would have been prepared, proposed, adopted, approved and ratified irrespective of the fact that any one or more other sections, subsections, sentences, clause or phrases be declared invalid or unconstitutional.

Section 4. This Ordinance shall take effect upon the thirty-first day after its final passage.

INTRODUCED at a regular meeting of the City Council of the City of Susanville, California, on the 19th day of November 2025, and adopted at a regular meeting of the City Council of the City of Susanville, California, on the ______ day of _________2025.

APPROVED: ________________________
Mendy Schuster, Mayor

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ATTEST: ________________________
Heidi Whitlock, City Clerk
The foregoing Ordinance was adopted at a regular meeting of the City Council of the City of Susanville, held on the ______day of __________2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

__________________________
Heidi Whitlock, City Clerk
APPROVED AS TO FORM: __________________________
Margaret Long, City Attorney

Agenda Item No. 9.A.

Standard Review
Susanville City Council Agenda Item
Submitted By: Victoria Estrada, Admin Assistant - Police Action Date: November 19, 2025
Subject: Consider Resolution No. 25-6491, Approving and Accepting A Donation From Tractor Supply Company Foundation
Presented By: Allen Sobol, Police Lieutenant
Summary: Tractor Supply Company Foundation is a charitable corporation that provides funding. Each year, the Foundation awards local cash awards to a First Responder entity that are designed to address the unique needs of the communities where we operate. Some of the needs that are addressed and awarded pertain to Public Safety Awareness and Prevention Programs. The Susanville Police Department was selected this year by our local Tractor Supply store to receive Foundation funds from the corporate office to help fulfill needs to continue to provide educational outreach to our community. Tractor Supply Company Foundation has awarded the department with a donation of $500.00. Upon approval and acceptance by the City Council, the Susanville Police Department plans to utilize this funding for Police Prevention supplies, materials and educational promotions.

Fiscal Impact: Susanville Police Department to receive $500.00 in charitable donations to purchase educational supplies
Action Requested: Motion to approve Resolution No. 25-6491, Approving and Accepting A Donation From Tractor Supply Company Foundation Attachments:

1. 25-6491

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RESOLUTION NO. 25-6491

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUSANVILLE APPROVING AND ACCEPTING A DONATION OF $500 FROM

TRACTOR SUPPLY FOR THE SUSANVILLE POLICE DEPARTMENT
WHEREAS, the Susanville Police Department has been awarded funding to Tractor Supply which provides funding to public safety programs, prevention and education programs for youth and funding support for local public safety department programs; and WHEREAS, the Susanville Police Department has a need to purchase public education supplies, prevention supplies, and safety hand-out brochures; and WHEREAS, the City being authorized to accept gifts and donations; and WHEREAS, the City Council acknowledges that prevention supplies, education supplies, and safety hand-out brochures are valuable resources to the community.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Susanville hereby accepts the donation from Tractor Supply in the amount of $500 for the Susanville Police Department; and
BE IT FURTHER RESOVLED, that the Mayor is authorized to approve this donation on behalf of the City of Susanville and authorizes the Finance Director to modify the budget as necessary to accommodate the expenditure of funds received.

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 19th day of November 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
Heidi Whitlock, City Clerk
APPROVED AS TO FORM:_____________________________
Margaret Long, City Attorney

Agenda Item No. 9.B.

Standard Review
Susanville City Council Agenda Item
Submitted By: Dan Newton, City Manager
Action Date: November 19, 2025
Subject: Consider Resolution No. 25-6492, authorizing the City Manager to execute agreements with Pace Engineering and NST
Engineering for on-call engineering services.

Presented By: Dan Newton, City Manager
Summary: On-call engineering support is needed for the efficient completion of various City projects. Due to limited City staffing resources, utilizing external consultants will enable the City to meet project deadlines, address infrastructure system requirements, and comply with funding deadlines effectively.

Project Examples:

City Hall Interior Repairs
Police Department Roof/Interior Repairs
Museum Storage
Little League Bathroom
Fire Department Roof/HVAC
Street Projects (Non-STIP)
Water Utilities System Mapping
Water Facility Improvements - e.g. water line replacements Golf Course - e.g. flood damaged old clubhouse
Airport Projects (Non-FAA) - e.g. hangar repairs/renovations The agreements are structured as on-call engineering agreements, allowing the City to request services from one of the two selected firms when needed. Each time, the firm will provide an estimate to perform specific tasks, which may include preparing engineering drawings, technical reports, conducting construction inspections, material testing, plan reviews, or other engineering services necessary to advance projects toward completion.

In accordance with the authorizing resolution, the City Manager is authorized to execute task orders only when sufficient budget is available in the fund covering the work. If the necessary budget is not available, the item will be presented to City Council for consideration of a budget increase. Currently, all ARPA projects are included in the FY 25/26 budget. The ARPA projects must be completed by December 31, 2026.

Fiscal Impact: Fiscal Impact for on-call services includes design services for ARPA projects, miscellaneous utility/facility repairs, and others. No specific fiscal impact beyond what is already budgeted.

Action Requested: Motion to approve Resolution No. 25-6492, authorizing City Manager to execute agreements with Pace Engineering and NST Engineering for on-call engineering services.

Attachments:

1. 25-6492

2. EXAMPLE On-Call Engineering Agreement

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RESOLUTION NO. 25-6492

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUSANVILLE

AUTHORIZING THE CITY MANAGER TO EXECUTE AGREEMENTS WITH PACE

ENGINEERING AND NST ENGINEERING FOR ON-CALL ENGINEERING SERVICES WHEREAS, the City of Susanville (City) provides a variety of programs and services to the public; and
WHEREAS, many programs and services require professional assistance of qualified engineering firms; and
WHEREAS, examples of these services include engineering design, consultation, procurement of specialized services, construction inspection and testing, and others; and WHEREAS, in accordance with the City’s procurement policy City staff has solicited the interest of qualified engineering firms, reviewed submitted qualifications and fee schedules; and WHEREAS, PACE Engineering and NST Engineering have been determined to be qualified to perform engineering services in a variety of disciplines that may be needed by the City at a reasonable cost; and
WHEREAS, Professional Services Agreements have been prepared for Council’s consideration and approval in an amount not to exceed $250,000 over a three-year term.

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

1. The City Manager is authorized to execute an on-call engineering agreement with PACE Engineering in an amount not to exceed $250,000 over a three-year term; and

2. The City Manager is authorized to execute an on-call engineering agreement with NST Engineering in an amount not to exceed $250,000 over a three-year term; and

3. The City Manager is authorized to execute task orders, as needed and subject to budget availability, for on-call engineering services up to and including the full amount of each agreement.

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 19th day of November 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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____________________________
Heidi Whitlock, City Clerk

APPROVED AS TO FORM:_____________________________
Margaret Long, City Attorney

EXAMPLE - ENGINEERING ON-CALL AGREEMENT 1

SERVICES AGREEMENT

BETWEEN

THE CITY OF SUSANVILLE
AND

ENGINEERING CONTRACTOR
THIS SERVICES AGREEMENT (“Agreement”) is made and entered into this _______ day of November 2025, by and between the CITY OF SUSANVILLE (“City”), and ____________("Contractor").

RECITALS
WHEREAS, City desires to retain a person or firm to provide the following services:

On-call professional engineering services on as-needed basis, services including planning, design, engineering, bid and specifications, permitting, and construction support for City projects of various scopes and scales; and WHEREAS, Contractor warrants that it is qualified and agreeable to render the aforesaid services.

AGREEMENT
NOW, THEREFORE, for and in consideration of the agreement made, and the payments to be made by City, the parties agree to the following:

I. SCOPE OF SERVICES: Contractor agrees to provide services described in Exhibit A, services under this agreement shall be performed only upon the City’s issuance of a written Task Order as outlined in Exhibit C.

II. CITY FURNISHED SERVICES: The City agrees to:

A. Facilitate access to and make provisions for the Contractor to enter upon public and private lands as required to perform their work.

B. Make available to Contractor those services, supplies, equipment and staff that are normally provided for the services required by the type of services to be rendered by Contractor hereunder and as set forth in Exhibit A.

C. Make available all pertinent data and records for review.

III. TERM OF AGREEMENT: This Agreement shall commence upon full execution and shall remain in effect for three (3) years, unless sooner terminated in accordance with the terms hereunder. The City may extend this Agreement for up to two (2) additional one-year periods upon written mutual agreement.

EXAMPLE - ENGINEERING ON-CALL AGREEMENT 2
IV. FEES: The fees for furnishing services under this Agreement shall be based on the rate schedule which is attached hereto as Exhibit B. Said fees shall remain in effect for the entire term of this Agreement, unless otherwise approved by City Manager. City Manager may approve a fee schedule increase if Contractor provides evidence that fee schedule increase is reasonable and consistent with rates Contractor charges other comparable clients for similar services.

V. MAXIMUM COST TO CITY: Notwithstanding any other provision of this Agreement, in no event will the cost to City for the services to be provided herein exceed the maximum sum of $250,000.00, including direct non-salary expenses.

VI. PAYMENT: The fees for services under this Agreement shall be due within 60 calendar days after receipt and approval by City of an invoice covering the service(s) rendered to date.

For any services involving a public works or construction project, the City shall retain 10 percent of each monthly progress payment, which shall be due upon completion and acceptance by City of the work or termination of this Agreement.

With respect to any additional services provided under this Agreement as specified in Paragraph II hereof, Contractor shall not be paid unless Contractor has received written authorization from City for the additional services prior to incurring the costs associated therewith. Said additional services shall be charged at the rates set forth on Exhibit B.

Invoices or applications for payment to the City shall be sufficiently detailed and shall contain full documentation of all work performed and all reimbursable expenses incurred. Where the scope of work on the Agreement is divided into various tasks, invoices shall detail the related expenditures accordingly. Labor expenditures need documentation to support time, subsistence, travel and field expenses. No expense will be reimbursed without adequate documentation. This documentation will include, but not be limited to, receipts for material purchases, rental equipment and subcontractor work.

Notwithstanding any other provision herein, payment may be delayed, without penalty, for any period in which the State or Federal Government has delayed distribution of funds that are intended to be used by the City for funding payment to Contractor.

VII. INSURANCE: Contractor shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Contractor, his agents, representatives, employees, or subcontractors.

Minimum Scope and Limit of Insurance

EXAMPLE - ENGINEERING ON-CALL AGREEMENT 3
A. The Contractor shall maintain a commercial general liability (CGL) insurance policy (Insurance Services Office Form CG 00 01) covering CGL on an occurrence basis, including products and completed operations, property damage, bodily injury, and personal & advertising injury, with limits in the amount of $1,000,000, and a general aggregate limit of $2,000,000.

The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the General Liability Policy with respect to liability arising out of work or operations performed by or on behalf of the Contractor, including materials, parts, or equipment furnished in connection with such work or operations. Additional insured should read as follows:

City of Susanville
66 N. Lassen Street
Susanville, CA 96130
B. The Contractor shall be required to carry professional coverage in the amount of $1,000,000 per occurrence or claim, and $2,000,000 aggregate.

Prior to the commencement of any work hereunder, the Contractor shall supply a Certificate of Insurance and endorsements, signed by the insurer, evidencing such insurance as specified above to City. However, failure to obtain and provide the required documents to City prior to the work beginning shall not waive the Contractor’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. Each insurance policy required above shall provide that coverage and shall not be canceled, except with prior written notice to the City.

Insurance is to be placed with an insurer with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

Any deductibles or self-insured retentions must be declared to and approved by the City. The City may require the Contractor to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.

For any claims related to this Agreement, the Contractor’s insurance coverage shall be primary coverage at least as broad as ISO CG 20 01 04 13 with respect to the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers, shall be in excess of the Contractor’s insurance and shall not contribute with it.

EXAMPLE - ENGINEERING ON-CALL AGREEMENT 4
Contractor hereby grants to City a waiver of any right to subrogation which any insurer of said Contractor may acquire against the City by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

VIII. WORKER'S COMPENSATION: The Contractor acknowledges that it is aware of the provisions of the Labor Code of the State of California which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that Code and it certifies that it will comply with such provisions before commencing the performance of the services to be performed under this Agreement and at all times during the performance of the services to be performed hereunder. A copy of the certificates evidencing such insurance with policy limits of at least $1,000,000 per accident for bodily injury or disease (or, in the alternative, a signed City Workers’ Compensation Exemption form) shall be provided to City prior to commencement of work.

IX. INDEMNIFICATION:

A. General Indemnification. To the fullest extent permitted by law, Contractor shall indemnify, defend, and hold harmless the City, its officers, officials, employees, agents, and volunteers from and against all claims, damages, losses, and expenses, including but not limited to reasonable attorneys' fees, arising out of or resulting from the performance of Contractor's services under this Agreement, but only to the extent caused by the negligent acts, errors, or omissions, recklessness, or willful misconduct of Contractor, its officers, agents, employees, or subconsultants.

B. Proportionate Liability. In claims involving the concurrent negligence of the Contractor and the City, the Contractor's indemnification obligation shall be limited to the extent of the Contractor's negligence. This provision is intended to comply with California Civil Code Section 2782 and does not require Contractor to indemnify the City for claims arising from the City's sole negligence or willful misconduct.

X. NONDISCRIMINATORY EMPLOYMENT: In connection with the execution of this Agreement and the services to be provided hereunder, the Contractor shall not discriminate against any employee or applicant for employment because of race, color, religion, age, sex, national origin, political affiliation, ancestry, marital status or disability. This policy does not require the employment of unqualified persons.

XI. INTEREST OF PUBLIC OFFICIALS: No officer, agent or employee of the City during their tenure, nor for one year thereafter, shall have any interest, direct or indirect, in this Agreement or the proceeds thereof.

EXAMPLE - ENGINEERING ON-CALL AGREEMENT 5
XII. SUBCONTRACTING AND ASSIGNMENT: The rights, responsibilities and duties established under this Agreement are personal to the Contractor and may not be subcontracted, transferred or assigned without the express prior written consent of the City.

XIII. LICENSING AND PERMITS: The Contractor shall maintain the appropriate licenses throughout the life of this Agreement. Contractor shall also obtain any and all permits which might be required by the work to be performed herein.

Failure to maintain the licenses, permits, certificates, and credentials shall be deemed a breach of this agreement and constitutes grounds for the termination of this agreement.

XIV. BOOKS OF RECORD AND AUDIT PROVISION: Contractor shall maintain on a current basis, complete books and records relating to this Agreement. Such records shall include, but not be limited to, documents supporting all bids and all expenditures for which any reimbursement is sought. The books and records shall be original entry books. In addition, Contractor shall maintain detailed payroll records, including all subsistence, travel and field expenses, and canceled checks, receipts and invoices for all items for which any reimbursement is sought. These documents and records shall be retained for at least ten years from the completion of this Agreement (42CFR Sections 433.32, 438.3(h) and (u)).

Contractor will permit City to audit all books, accounts or records relating to this Agreement or all books, accounts or records of any business entities controlled by Contractor who participated in this Agreement in any way. Any such audit may be conducted on Contractor's premises or, at City's option, Contractor shall provide all books and records within a maximum of 15 calendar days upon receipt of written notice from City.

Contractor shall promptly refund any moneys erroneously charged. If City ascertains that it has been billed erroneously by Contractor for an amount equaling 5% or more of the original bid, Contractor shall be liable for the costs of the audit in addition to any other penalty to be imposed. This paragraph applies to any contract which provides for reimbursement of expenses.

XV. CONFIDENTIALITY: All information and records obtained in the course of providing services under this Agreement shall be confidential and shall not be open to examination for any purpose not directly connected to the administration of this program or the services provided hereunder. Both parties shall comply with State and Federal requirements regarding confidential information.

XVI. TITLE: It is understood that any and all documents, information, computer disks, and reports of any kind concerning the services provided hereunder, prepared by and/or submitted to the Contractor, shall be the sole property of the City. The Contractor may retain reproducible copies of drawings and copies of other documents. In the event of the termination of this Agreement, for any reason whatsoever, Contractor shall promptly turn over all information, writing, computer

EXAMPLE - ENGINEERING ON-CALL AGREEMENT 6
disks, and documents to City without exception or reservation. Contractor shall transfer from computer hard drive to disk any information or documents stored on hard drive and provide City with said disk.

XVII. TERMINATION:

A. Either party hereto may terminate this Agreement for any reason by giving thirty (30) calendar days written notice to the other party. Notice of Termination shall be by written notice to the other party and shall be sent by registered mail.

B. If the Contractor fails to provide in any manner the services specified under this Agreement or otherwise fails to comply with the terms of this Agreement, or violates any ordinance, regulation, or other law which applies to its performance herein, the City may terminate this Agreement by giving five calendar days written notice to Contractor.

C. The Contractor shall be excused for failure to perform services herein if such services are prevented by acts of God, strikes, labor disputes or other forces over which the Contractor has no control.

D. In the event of termination, not the fault of the Contractor, the Contractor shall be paid for services performed up to the date of termination in accordance with the terms of this Agreement.

XVIII. RELATIONSHIP BETWEEN THE PARTIES: It is expressly understood that in the performances of the services herein, the Contractor, and the agents and employees thereof, shall act in an independent capacity and as an independent contractor and not as officers, employees or agents of the City.

XIX. AMENDMENT: This Agreement may be amended or modified only by a written instrument signed by both parties.

XX. ASSIGNMENT OF PERSONNEL: The Contractor shall not substitute any personnel for those specifically named in its proposal unless personnel with substantially equal or better qualifications and experience are provided, acceptable to City, as evidenced in writing.

XXI. WAIVER: No provision of this Agreement or the breach thereof shall be deemed waived, except by written consent of the party against whom the waiver is claimed.

XXII. SEVERABILITY: If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall not be affected thereby. Each provision shall be valid and enforceable to the fullest extent permitted by law.

EXAMPLE - ENGINEERING ON-CALL AGREEMENT 7
XXIII. JURISDICTION AND VENUE: This Agreement and the obligations hereunder shall be construed in accordance with the laws of the State of California. The parties hereto agree that venue for any legal disputes or litigation arising out of this Agreement shall be in Glenn County, California.

XXIV. ENTIRE AGREEMENT: This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof, and all prior or contemporaneous agreements, understandings, and representations, oral or written, are superseded.

XXV. EXHIBITS: All “Exhibits” referred to below or attached to herein are by this reference incorporated into this Agreement:

Exhibit Designation Exhibit Title
Exhibit A Services to be provided by Contractor
Exhibit B Compensation or Fees to be Paid to Contractor Exhibit C Task Order
XXVI. DESIGNATED AGENTS: The parties represent and warrant that they have full power and authority to execute and fully perform their obligations under this Agreement pursuant to their governing instruments, without the need for any further action, and that the person(s) executing this Agreement on behalf of each party are the duly designated agents of each party and are authorized to do so.

XXVII. COMPLIANCE WITH APPLICABLE LAWS: The Contractor shall comply with any and all federal, state and local laws, regulations, and ordinances affecting the services covered by this Agreement.

XXVIII. ATTORNEY’S FEES: If any party hereto employs an attorney for the purpose of enforcing or construing this Agreement, or any judgment based on this Agreement, in any legal proceeding whatsoever, including insolvency, bankruptcy, arbitration, declaratory relief or other litigation, including appeals or rehearing, the prevailing party shall be entitled to receive from the other party, or parties thereto, reimbursement for all attorneys’ fees and all costs, including but not limited to service of process, filing fees, court and court reporter costs, investigative costs, expert witness fees, and the cost of any bonds, whether taxable or not. If any judgment or final order be issued in that proceeding, said reimbursement shall be specified therein.

XXIX. NOTICES: Any notice required to be given pursuant to the terms and conditions hereof shall be in writing, and shall be via one of the following methods: personal delivery, prepaid Certified First-Class Mail, or prepaid Priority Mail with delivery confirmation. Unless others designated by either party, such notice shall be mailed to the address shown below:

EXAMPLE - ENGINEERING ON-CALL AGREEMENT 8
If to City:

City of Susanville
66 N. Lassen Street
Susanville, CA 96130
530-252-5100
If to Contractor:

___________________
___________________
___________________
XXX. PUBLIC WORKS PROJECTS: No contractor or subcontractor may be listed on a bid proposal for a Public Works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 (with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)). No contractor or subcontractor may be awarded a Public Works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. [signature page to follow]

EXAMPLE - ENGINEERING ON-CALL AGREEMENT 9
IN WITNESS WHEREOF, the parties hereunto have executed this Agreement on the date written below.

CITY OF SUSANVILLE: CONTRACTOR:

By: ___________________________ By: ____________________________ Mendy Schuster, Mayor Name:_______________________
City of Susanville, City Council Title: _________________ ____ Date: ___________________ Date: ________________________ Approved as to form:

By: _____________________________
Margaret E. Long
City Attorney

EXAMPLE - ENGINEERING ON-CALL AGREEMENT 10

EXHIBIT A

SERVICES TO BE PROVIDED BY CONTRACTOR
Contractor shall:
• Perform all services in a professional and competent manner consistent with the standards of the engineering profession;
• Comply with all applicable federal, state, and local laws and regulations; • Maintain all required professional licenses and certifications; and • Provide sufficient staff and resources to complete assigned tasks in a timely manner.

Contractor shall perform professional engineering services as requested by the City, which may include but are not limited to:
• Civil and structural engineering services;
• Professional Land Surveying services;
• Project planning, cost estimating, and construction support; • Preparation of technical reports, bids and specifications, and drawings; • Development review, utility, roadway, and drainage design; • Engineering consultation on public works and infrastructure projects; and • Other related services as assigned in writing by the City.

Each task or assignment will be authorized by the City through a Task Order that identifies the specific scope, deliverables, schedule, and not-to-exceed cost.

EXAMPLE - ENGINEERING ON-CALL AGREEMENT 11

EXHIBIT B

CONTRACTOR FEE SCHEDULE

EXAMPLE - ENGINEERING ON-CALL AGREEMENT 12

EXHIBIT C

TASK ORDER PROCEDURE
Authorization of Services
• Services under this Agreement shall be performed only upon the City’s issuance of a written Task Order (TO).
• Each Task Order shall describe the specific scope of work, deliverables, schedule, and not-to-exceed fee for that assignment.
• No work shall commence until the Task Order is fully executed by both the City’s authorized representative and the Contractor.

Task Order Format
Each Task Order shall, at a minimum, include the following information:
• Task Order Number and Title
• Description of Services / Scope of Work
• Project Location (if applicable)
• Deliverables and Performance Schedule
• Estimated Level of Effort and Personnel Assignments
• Fee Schedule (lump sum or time-and-materials not-to-exceed) • Reimbursable Expenses (if any)
• City Project Manager / Contractor Project Manager
• Special Conditions (as applicable)
• Signatures of Authorized Representatives
Compensation and Invoicing
• Compensation for each Task Order shall be based on the approved rates in Exhibit A – Fee Schedule, unless otherwise negotiated for a specific task. • Each Task Order shall include a not-to-exceed amount that shall not be exceeded without written amendment approved by the City. • Contractor shall invoice the City for work completed under a Task Order on a monthly basis, referencing the Task Order number and itemizing all labor, materials, and expenses.

Modification or Termination of Task Orders
The City may, at its discretion, modify, suspend, or terminate a Task Order at any time by written notice to Contractor. Upon receipt of such notice, Contractor shall immediately stop work on the affected task, except as necessary to safely close out work in progress. Contractor shall be compensated for all services satisfactorily performed to the effective date of the modification or termination.

Independent Scope
Each Task Order shall stand alone and be governed by the terms of this Agreement.

EXAMPLE - ENGINEERING ON-CALL AGREEMENT 13
In the event of a conflict between a Task Order and the Agreement, the terms of the Agreement shall control unless the Task Order specifically identifies and modifies a provision with City approval.

Cumulative Not-to-Exceed Total
The total cumulative amount of all Task Orders issued under this Agreement shall not exceed the overall Agreement limit established by the City without formal amendment to this Agreement.

Task Order Closeout
Upon completion of services under a Task Order, Consultant shall provide all deliverables and final documentation as required. The City shall review, accept, and formally close the Task Order before authorizing final payment.

Agenda Item No. 9.C.

Standard Review
Susanville City Council Agenda Item
Submitted By: Chandra Jabbs, Finance Director
Action Date: November 19, 2025
Subject: Consider Resolution No. 25-6493, Accepting the City of Susanville's Audited Financial Statements for the Fiscal Year ending June 30, 2024
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, 2024. 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 Financial Report (AFR). The AFR 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. For FY2023-24, the City elected not to include the statistical information in order to help the City progress on returning to standard auditing timelines. The auditor 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 2023-24 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 were the combined result of staffing issues and prioritizing identifying additional revenues for city solvency during the last few fiscal years. Delays are expected to continue into FY2024-25, but the City expects to return to a more appropriate timeline for FY 2025-26. For the full report on 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. 25-6493, Accepting the City of Susanville's Audited Financial Statements for the Fiscal Year ending June 30, 2024.

Attachments:

1. Resolution No. 25-6493

2. Audit Conclusion letter 2024

3. Internal Control Report Susanville 2024

4. Final FS Susanville 2024

5. Appropriations Limit Report 2024

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RESOLUTION NO. 25-6493

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, 2024
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, 2024; and
WHEREAS, Van Lant and Fankhanel, LLP CPAs, have performed the audit and submitted an Annual Financial Report (AFR) 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 AFR for the fiscal year ended June 30, 2024 is hereby accepted for the City of Susanville.

Dated:

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 19th day of November, 2025 by the following vote:

AYES:

ABSENT:

ABSTAIN:
_____________________________
Heidi Whitlock, City Clerk
APPROVED AS TO FORM: _____________________________
Margaret Long, City Attorney

November 10, 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, 2024. 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 August 29, 2025. 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.
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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 November 10, 2025. 2

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 section, which accompanies the financial statements but is 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,
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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, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated November 10, 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 2024-001, that we consider to be a material weakness.
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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.

November 10, 2025
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CITY OF SUSANVILLE

SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2024
2024-001 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 August of 2025 for the 2023-24 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 2023-24 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

CITY OF SUSANVILLE

SCHEDULE OF FINDINGS AND RESPONSES
Year Ended June 30, 2024
2024-001 Timeliness and Accuracy of Accounting Records - Continued Views of Responsible Officials:

The City’s management team acknowledges and agrees with the auditors’ comments and recommendations. Several factors contributed to delays in the FY23/24 audit process, many of which stem from challenges experienced in prior fiscal years.

During FY2020-21 and FY2021-22, the City adopted deficit budgets due to increasing CalPERS UAL repayment obligations. In response, the City focused on identifying new revenue sources, including the development and promotion of a sales tax measure aimed at boosting municipal revenues. Additionally, an Expenditure Reduction Plan was adopted in April 2022 to prepare for the possibility that the tax measure might not pass in the June 2022 election.

These efforts impacted the timeline for adopting the FY2022-23 budget, which was postponed until September 2022 to allow for the election results to be incorporated. Compounding these delays, the region was significantly affected by the Dixie Fire from July to October 2021. The fire led to evacuations, rolling power outages, and widespread internet disruptions, all of which hindered the City’s ability to complete the year-end close and budget adoption processes on schedule.

Staffing challenges also played a major role. The Administration Department experienced high turnover, including vacancies in key leadership positions such as the City Administrator and Finance Manager—both critical to the audit process. The Finance Division faced a 60% turnover rate at the technician level over the past three years, resulting in senior staff having to manage daily operations, leaving limited capacity for higher-level tasks. During the deficit budget periods, the Finance Department operated with minimal staffing, making it difficult to recover once timelines were disrupted. As a result, audits and budgets were often completed concurrently rather than sequentially, further straining resources.

While delays have affected the delivery of the FY2023-24 audit, it will be passed only seven months after the approval of the FY2022-23 audit, signaling positive movement toward the intent to return to a regular and timely audit cycle. This progress reflects the City's ongoing commitment to improving internal processes, stabilizing staffing, and aligning financial operations with standard reporting timelines. Staff remains focused on sustaining this momentum and anticipates a full return to expected audit timelines by FY2025-26. 4

Fiscal Year Ended June 30
City of Susanville
Annual Financial Report
2024
Photo Credit: Dan Newton

City of Susanville
Annual Financial Report
Year Ended June 30, 2024

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 4-22
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 58 Schedule of Plan Contributions 59
Budgetary Comparison Schedules - Major Governmental Funds:

General Fund 60
Gas Tax Special Revenue Fund 61
Notes to Required Supplementary Information 62
Supplementary Information:

Non-major Governmental Funds: 63
Combining Balance Sheet 64 - 67
Combining Statement of Revenues, Expenditures and Changes in Fund Balances 68 - 71 Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual:

Local Law Enforcement Grant Special Revenue Fund 72
Street Mitigation Special Revenue Fund 73
Police Mitigation Special Revenue Fund 74
Fire Mitigation Special Revenue Fund 75
Park Land In-lieu Special Revenue Fund 76
State Revolving Loan Special Revenue Fund 77
HOME Revolving Special Revenue Fund 78
Traffic Safety Special Revenue Fund 79
Skyline Bicycle Special Revenue Fund 80

City of Susanville
Annual Financial Report
Year Ended June 30, 2024
TABLE OF CONTENTS – Continued
Supplementary Information - Continued: PAGE
Traffic Signals Special Revenue Fund 81
CDBG Special Revenue Fund 82
Road Special Revenue Fund 83
Tobacco Grant Special Revenue Fund 84
Asset Forfeiture Special Revenue Fund 85
FEMA AFG Grant Special Revenue Fund 86
LEAP Grant Special Revenue Fund 87
OTS Grant Special Revenue Fund 88
City Hall Debt Service Fund 89
Community Swimming Pool Debt Service Fund 90
City Hall Parking Lot Capital Projects Fund 91
Non-major Enterprise Funds 92
Combining Statement of Net Position – Nonmajor Enterprise Funds 93 Combining Statement of Revenues, Expenses and Changes in Net Position - Nonmajor Enterprise Funds 94
Combining Statement of Cash Flows – Nonmajor Enterprise Funds 95 Internal Service Funds 96
Combining Statement of Net Position - Internal Service Funds 97 Combining Statement of Revenues, Expenses and Changes in Net Position - Internal Service Funds 98
Combining Statement of Cash Flows - Internal Service Funds 99 Fiduciary Funds 100
Combining Statement of Fiduciary Net Position - Custodial Funds 101 Combining Statement of Changes in Fiduciary Net Position - Custodial Funds 102

INTRODUCTORY SECTION

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66 North Lassen Street
Susanville, California 93130
Telephone (530) 252-5112
Fax (530) 257-4725
November 10, 2025
To the Honorable Mayor, Members of the
City Council and Citizens of the City of Susanville:

The Annual Financial Report for the City of Susanville for the fiscal year ended June 30, 2024 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, 2024 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.

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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 two-year term.

Council Members are elected to serve
alternating four-year terms. The City
Council appoints the City Manager
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 restricted funds requiring a 4/5ths vote. The City Manager is authorized to transfer between departments of

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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 modestly in FY 2023-24 from the lingering economic effects of the COVID-19 pandemic. 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. As a small city, we elected to claim these funds under the standard allowance for revenue loss, and have identified projects to use these funds through FY 2024-25 and FY 2025-26. Funds must be spent by December 31, 2026. The COVID-19 pandemic affected our sales and use taxes considerably during FY 2019-20, seeing a drop in BradleyBurns sales tax of 15.7% from FY2018-19. The City began to see a recovery of these taxes from FY 2020-21 through FY 2022-23, increasing 18% over pre-COVID (FY2018-19) levels, however, FY 2023-24 saw a modest decline of 2.15% from FY 2022-23. In 2022, the voters passed Measure P, which instituted a 1% Sales and Use Tax, generating more sales tax revenue to support these losses. 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, as wildfires in the region brought fire personnel into the community and stimulated TOT. FY 2023-24 saw losses in TOT of 18.1% from FY 2022-23 as the inflationary impacts and the prison closure are slowing tourism and transient activities.

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

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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 in population briefly in 2023, and population estimates increased by 6.7% from 2024 to 2025, the 4th highest growth rate by city in the state.

The three major sources of General Fund revenue include Sales and Use Tax, Other Property Tax and Property Tax In-Lieu of Vehicle License Fees. These three revenue sources account for approximately 75% of the General Fund Revenues.

Sales and Use Tax
Sales and Use Tax is the City’s largest source of revenue, representing approximately 45% of all general fund revenues in FY 2023/24. Sales and Use Tax increased 13.71% over Fiscal Year 2022-23. In 2022, the Susanville voters passed Measure P, a sales and use tax increase of 1% to maintain and enhance existing public safety services (police and fire) and provide funding to support infrastructure improvements. The funds could also be used to support economic development efforts designed to increase businesses, jobs and visitors to Susanville. The collection of these taxes began on October 1, 2022, and FY 2023-24 is the first year we received receipts from this measure for the entire fiscal year. FY 2023-24 Measure P receipts were over $2.3 million, or 52% of all the sales tax revenues. However, economic forecasts project sales tax revenue losses moving into FY 2024-25 and small growth FY 2025-26 due to inflation, high interest rates, and continued weak consumer confidence.

Property Tax
In Lieu of VLF
18%
Other Property
Taxes
12%
Sales & Use Taxes
45%
TOT
5%
Business License
3%
Charges for
Services
6%
Intergovernmental
5%
Investment
Earnings
4%
Other
2%
General Fund Revenues FY 23-24

v
Property Tax
Property Taxes represent approximately 12% of all general fund revenues. The initial announcement of the CCC closure impacted the housing market briefly as housing sales declined in FY 2022-23, due to fears of a large decrease of residents in the community.

However, FY 2023-24 is reporting increased property taxes of 9.45% over FY 2022-23 levels as Susanville remains one of the most affordable housing markets in California. Population estimates are continuing to increase into 2025, and preliminary numbers indicate continued growth in FY 2024-25.

Property Tax In-Lieu of Vehicle License Fees
Property Tax In-Lieu of VLF represents approximately 18% of all general fund revenues.

This revenue increased by 3.9% from the previous year due to increased assessed value of taxable properties in the city.

Long Range Planning
The City plans to continue 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, and aid with contract negotiations for employee costs.

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 2025-26 is $643,940. Actuarial forecasts prior to the refinancing anticipated UAL payments of $1,339,400 in FY 2025-26. The refinance saved the City over $148,000 in FY 2022-23 and savings 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

vi
 Strategic Planning for each department to identify needs for ongoing development  Funding deferred capital improvements
 Federally Funded Pavement Rehabilitation projects throughout the City including programming of funds for the Riverside Dr. Rehabilitation Project  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  City Transportation Infrastructure Maintenance Plan
 Pat Murphy Ball Field bathroom improvements
 General Plan Update
 Memorial Park Ballfield Grandstand Project
 Museum Storage Project
 Fire and Police Facility Improvements
 Airport Taxiway B Project
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 Manager Finance Director

vii

City Council
Fiscal Year 2023-24
_________________________________
Council Members
Mendy Schuster – Mayor
Russ Brown – Mayor Pro-Tempore
Curtis Bortle
Dawn Miller

Patrick Parrish
viii

City of Susanville
Executive Staff
City Manager Dan Newton

City Clerk Heidi Whitlock
Public Safety Chief Michael Bengoa-Bollinger
Public Works Director Robert Godman
Finance Director Chandra Jabbs
ix

FINANCIAL SECTION

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, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the 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, 2024, 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

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

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 November 10, 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.

November 10, 2025
3

City of Susanville
Management’s Discussion & Analysis
Year Ended June 30, 2024
This is the management’s discussion and analysis of the financial performance of the City of Susanville for the fiscal year ended June 30, 2024. 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

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

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:
 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
 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 nonmajor proprietary (enterprise) funds, please refer to the Supplementary Information pages in the financial statements.
6

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 $23.6 million as of June 30, 2023 ($8.8 million for governmental activities and $14.8 million for business-type activities), and by $25.8 million as of June 30, 2024 ($8.9 million for governmental activities and $16.9 million for business-type activities).

In fiscal year 2023-24, Cash and Investments increased by $4,459,999, ($3,269,532 in governmental activities and $1,190,467 in business-type activities), and restricted Cash and Investments increased by $674. Deferred outflows of resources decreased by $2,751,146 ($1,160,235 in governmental activities and $1,590,911 in business-type activities). Capital Assets decreased by $1,392,015 from FY2022-23. Governmental activities included the purchase of three new police vehicles and a UTV vehicle for parks.

Business-type activities included the purchase of a new vehicle e for the gas division, and the golf course purchased a new greens mower. In the fiscal year 2023-24, liabilities decreased by $1,461,394, ($647,570 increase in governmental activities and $2,108,964 decrease 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

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, 2023, and 2024.

Table A-1
Government-wide Net Position as of June 30, 2023, and 2024 Governmental Activities
2023 2024
Cash & Investments 9,259,823 12,529,355
Capital Assets 12,290,554 11,866,554
Other Assets 2,857,184 1,300,212
TOTAL ASSETS $24,407,561 25,696,121
Deferred Ouƞlows of
Resources
7,455,123 6,294,888
Current liabiliƟes 1,396,289 1,541,250
Net pension liabiliƟes 5,421,952 6,324,088
Other non-current
liabiliƟes
8,934,377 8,534,850
TOTAL

LIABILITIES
$15,752,618 $16,400,188
Deferred Inflows of
Resources
7,281,547 6,601,961
Net investment in
Capital Assets
11,017,453 10,791,091
Restricted 2,988,762 3,529,852
Unrestricted (5,177,696) (5,332,083)
TOTAL NET POSITION $8,828,519 $8,988,860
8

Table A-2
Government-wide Net Position as of June 30, 2023, and 20243 Business-type Activities

2023 2024
Cash & Investments 10,418,019 11,609,160
Capital Assets 31,311,401 30,343,356
Other Assets 2,986,466 2,778,368
TOTAL ASSETS 44,715,886 44,730,884
Deferred Ouƞlows of Resources 3,568,437 1,977,526
Current liabiliƟes 1,699,680 1,803,551
Net pension liabiliƟes 1,440,008 486,923
Other non-current liabiliƟes 28,294,411 27,034,661
TOTAL LIABILITIES 31,434,099 29,325,135
Deferred Inflows of Resources 2,015,514 480,115
Net investment in Capital Assets 5,636,796 5,709,354
Restricted 0 0
Unrestricted 9,197,914 11,193,806
TOTAL NET POSITION $14,834,710 $16,903,160
The Statement of Activities presents program revenues and expenses and general revenues in detail. These elements are summarized for the years ended June 30, 2023, and 2024 in Tables B-1 and B-2 on the following pages.
9

Table B-1
Changes in Government-wide Net Position
For the Fiscal Years Ended June 30, 2023, and 2024
Governmental Activities

2023 2024
Expenses (by FuncƟon)
General Government 2,331,966 1,062,833
Public Safety 7,199,915 6,796,637
Streets 1,521,435 1,592,381
Community services 1,198,098 1,591,164
Community development 247,754 218,949
Interest 409,156 362,461
TOTAL EXPENSES $12,908,324 $11,624,425
Program revenues (by major source)
Charges for services 1,244,112 752,869
OperaƟng grants and contribuƟons 2,320,511 761,016
Capital grants and contribuƟons 2,914,425 1,590,244
TOTAL PROGRAM REVENUES $6,479,048 3,104,129
General revenues and transfers
Property Taxes 1,068,192 1,179,706
Property Tax in lieu of VLF 1,702,570 1,772,213
Sales & Use 3,833,632 4,436,457
Transient lodging taxes 594,682 509,758
Franchise taxes 11,001 6,673
Business license taxes 359,427 273,660
Other taxes 19,628
Investment earnings 193,180 497,377
Miscellaneous Income 50,000 -
Transfers 0 -19,189
TOTAL GENERAL REVENUES AND TRANSFERS $7,832,312 $8,680,637 Change in net posiƟon 1,403,036 160,341
Net posiƟon, beginning of year 7,425,483* 8,828,519
Net posiƟon, end of year $8,828,519 8,988,860
*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.
10

Table B-2
Changes in Government-wide Net Position
For the Fiscal Years Ended June 30, 2023, and 2024
Business-type Activities
2023 2024
Expenses (by FuncƟon)
Airport 278,439 352,445
Water 2,896,297 2,106,719
Geothermal 116,011 132,051
Natural Gas 4,820,031 3,458,750
Golf Course 453,728 452,505
TOTAL EXPENSES $8,564,506 $6,502,470
Program revenues (by major
source)
Charges for services 8,731,733 7,848,987
OperaƟng grants and
contribuƟons
0 Capital grants and
contribuƟons
0 111,209
TOTAL PROGRAM REVENUES $8,731,733 $7,960,196
General revenues and transfers
Miscellaneous 0 0
Investment Income 187,742 591,535
Transfers 0 19,189

TOTAL GENERAL REVENUES AND

TRANSFERS
$187,742
Change in net posiƟon 354,969 2,068,450
Net posiƟon, beginning of year 14,479,741 14,834,710
Net posiƟon, end of year $14,834,710 $16,903,160
On June 30, 2024, the total cash and investments for all funds increased by $1,058,739 (from $19,677,842 to $24,138,515). The primary reasons for this increase are:
 General Fund cash increased by $2,792,913, (from $5,995,995 to $8,788,908) during fiscal year 2023/24. The General Fund loaned $2,125,068 to the Gas Tax Special Revenue Fund in FY 2022/23 to cover the costs of the STIP FD project (Richmond Road Street Improvement Project) until reimbursement was received in FY 2023/24.
 General Fund taxes and assessments increased by $609,929 (from $7,572,621 to $8,182,550). The Measure P took effect in FY 22/23, beginning October 1, 2023, 11

which created a sales & use tax of 1% within city limits. FY 2023/24 would be the first year to receive a full year of revenues.
 General Fund Expenses increased by $1,200,873 (from $7,164,813 to $8,365,686). Much of this difference is due to increasing expenditures in Public Safety.
 The Water Fund cash and investments increased by $257,094 (from $4,156,039 to $4,413,133). This is primarily due to an increase in cash flows from operating activities.
 The Natural Gas Fund cash and investments increased by $783,233 (from $5,935,408 to $6,718,641). Receipts from customers decreased by $630,089 bringing the City back to average sales. Payments to Suppliers and Contractors decreased by $567,479 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 $1,686,046 (Administrative Services $320,991, Public Safety Police $945,139, and Public Safety Fire $419,916), Streets Fund $146,105, Water Fund $259,084 and Public Works Administration $44,042. 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 2023-24:

General Fund
The fiscal year 2023-24 annual budget began with a continuing resolution adopted and approved on June 19, 2023, by Resolution 23-6324 and with the final operating budget adopted and approved on July 16, 2024, by Resolution 24-6332 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, 2024, currently has $1,484,652. As part of the budget policies adopted by Resolution No. 24-6332, the City will strive to maintain General Fund reserves equal to twenty percent (20%) of annual operating revenues. 12

BUDGET VARIANCES IN THE GENERAL FUND

Original
Budget Final Budget Difference Actual
Actual vs
Final
Budget
Revenues 9,520,181 10,731,561 1,211,380 9,779,433 (952,128) Expenditures 9,516,948 11,443,554 1,926,606 8,365,686 3,077,868 Other Financing Sources and (uses):

Transfers In 35,000 111,300 100,369 - (111,300)
Transfers out (432,915) (459,915) - (502,652) (42,737)
Net change in
Fund Balance $(394,682) $(1,060,608) $(614,857) $911,095 $1,971,703 After the 2023-24 budget was adopted, the City Council approved several budget amendments.

Changes throughout the year resulted in the final budget. Changes were as follows:

Revenues
(29,000)
12,300
Property Tax & Sales Tax Projections Midyear Adjustment Right of Way Reimbursement
1,000 Walmart Donation (Police 2023)
127,080 PLHA Grant
1,100,000 DWR Johnstonville Dam Grant
1,211,380
Expenditures
1,100,000 DWR Johnstonville Dam Grant
6,100 Next Request Software
5,700 CalMuni Advisors
6,160 Hazard Mitigation Plan
4,000 Express Evaluations
25,000 Elections
18,000 Attorney Contract
192,365 UAL CalPERS Payoff Obligation
96,368 Negotiated Salary Adjustments
27,000 Golf Course Pump Repair
35,320 PD Emergency Facility
16,500 PD Tahoe Outfitting
1,000 WalMart Grant (PD)
91,046 PLHA Grant
40,000 PD Overtime Increase
20,000 Animal Control Contract
10,000 PD Gym Equipment
10,000 PD Management Training
5,000 Bullet Proof Vest purchase
4,000 Copier Contract (PD)
23,000 ATV Grant (LMUD)
9,000 Memorial Park Granite
2,500 Pickleball
42,720 Abatements
68,040 Mitigation Plan
7,000 Little League Bleachers
59,800 Pickleball Courts Resurfacing
$1,926,606
13

As of June 30, 2024, total General Fund revenues and other financing sources were $952,128 less than budgeted. During FY 2023-24, the City received a grant award on behalf of the Lahontan Basin Water Management District for $1,100,000. This grant is predominately a pass-through grant, as the City acts as the implementing agency for projects selected by the Lahontan Basin Water Management District. The entirety of the grant was initially budgeted for FY 2023-24; however, work on this project did not actually begin until FY 2024-25. The Fire Department budgets for $425,000 in revenues from out-of-area fires to allow the department to activate crews, but no personnel were dispatched during FY 2024-25. Taxes and assessments exceeded budgeted amounts by $111,423, and investment earnings exceeded budgeted amounts by $366,441.

Actual expenditures and other financing sources were $8,365,686 or $3,077,868 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 FY23-24 ($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..

The General Fund ended Fiscal Year 2023-24 with an increase in fund balance of $991,095, (from $7,419,797 to $8,330,892) compared to the prior year. This increase in fund balance can be primarily attributed to an increase in taxes and assessments, investment earnings, and charges for services.

Total General Fund revenues decreased from the prior year by $1,059,005 (from $10,838,438 to $9,779,433). In FY 2022-23, we received multiple one-time payments increasing our revenues. These one-time payments included ARPA funding or $1,029,635 and PG&E Settlement funding of $516,583, reducing intergovernmental transfers by $2,031,210 from FY 2022-23. Taxes and assessments had an increase of $689,550, investment earnings increased by $307,033, and charges for services increased by $76,620. Decreases included $12,464 in license and permits and $8,913 in fines and forfeitures.

For the year, General Fund total revenues exceeded total expenditures (excluding transfers) by $1,413,747, as compared to $36,73,625 for fiscal year 2022-23.

Compared to the prior year, the General Fund expenditures increased by $1,200,873 (from $7,164,813 to $8,365,686). Government expenses decreased by $68,281 and Public Safety expenses increased by $808,262 (from $4,908,434 to $5,716,696).

Community Services now includes Protective Inspections and Community Development, and these expenses combined increased by $387,615 (from $1,116,583 to $1,504,198).

Debt Service decreased by $8,486.
14

General Fund transfers out increased from the prior year by $207,572 (from $295,080 to $502,652). This is primarily due to debt service payments to the Gas fund loan repayment, a loan to the golf course, and a tennis court resurfacing project.

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 2023-24 with a increase in fund balance of $263,946. Revenues decreased over the previous year by $2,047,439 (from $2,827,134 to $779,695) primarily due to payments from the State of California for various STIP projects. Expenses decreased over the previous year by $2,408,269, from $3,193,683 to $785,414. A major STIP project which was completed 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. The next major STIP project is scheduled to being in FY 2024-25.

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 2023-24:

Water Enterprise Fund
On June 30, 2024, the Water Fund ending net position shows an increase of $855,767 (from $6,249,235 to $7,105,002). Overall the assets of the water fund decreased by $81,759, excluding Deferred Outflows of Resources. This is primarily due to an increase in cash of $258,002, an increase in accounts receivable of $59,140 and an increase in interest receivable of $11,482. Total capital assets decreased $412,701 over the prior fiscal year.

The total liabilities decreased by $969,264, (from $8,832,485 to $7,863,221). Current liabilities increased by $66,673, and non-current liabilities decreased by $1,035,937 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 $165,967 (from $2,905,783 to $2,739,816) 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 FY23-24 year. Administration costs decreased by $755,646, as the CalPERS payments in FY 2022- 23 were greater due to the refinancing of the UAL debt. Interest income increased over the prior year by $163,942.

Total expenses (operating and nonoperating) decreased by $789,578 (from $2,896,297 to $2,106,719). This is primarily due to a decrease in operating expenses from the refinancing of the UAL costs and reduced CalPERS obligations. 15

There were approximately 3,756 water customer accounts on June 30, 2024.

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 2023-24 (from $2,821,617 to $4,185,374). The 2023-24 usage increased by 17%; residential usage increased by 22% than the previous year while commercial usage increased by 9%. Natural Gas sales and charges for services decreased by $630,089, returning revenues back to average as FY 2021-22 and FY 2022-23 had a recording breaking winters. LAIF interest allocation increased by $226,343 due to higher returns in the investment fund.

Expenses including interest expense and transfers out decreased from the previous year by $1,587,624 (from $4,696,995 to $3,109,371). This is primarily due to the decreasing -
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 2024
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 4,917,216 7,026,196 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 3,218,653 6,609,334 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 5,481,787 5,733,122 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 5,344,796 7,933,482 4,101,521 2024 3,613,233 3,427,791 3,487,673 3,518,427 4,640,520 11,493,486 9,816,917 14,152,466 9,404,469 3,417,635 6,793,654 3,416,913 16

purchasing of natural gas due to lighter winters and the decreased administrative costs of the lower CalPERS obligations and increased interest revenues.

Total Assets excluding Deferred Outflows, increased by $212,656 (from $24,705,211 to $24,917,867), primarily due to an increase in cash and investments of $781,651 and interest receivable of $30,764, a decrease in accounts receivable ($37,554), a decrease in depreciable assets of ($361,557) and a decrease in other noncurrent assets of ($161,390).

Total liabilities decreased by $1,174,875 (from $22,809,301 to 21,634,426), primarily due to payments made on debt obligations as noncurrent liabilities decreased by $1,179,371.

During fiscal year 2023-24, natural gas prices in the wholesale market decreased following the cold winter of fiscal year 2022-23. Monthly and daily market prices were moderate throughout fiscal year 2023-24, compared to the previous year.

The first long-term purchase for winter 23/24 was done in April 2021 at $3.09 per MMBtu covered 44 percent of the City’s 23/24 winter supply. The second long-term purchase was done in June 2023 at $5.96 per MMBtu to cover the balance of the City’s 23/24 winter supply.
17

The city continues to strategically purchase winter gas in advance to avoid wholesale price volatility and to assure price stability for residents. The city’s current policy is to purchase at least 80% of anticipated winter supply prior to November 1st preceding the winter. The policy further requires annual reporting each year by August to the City Council on 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 18% of the expenses for FY 2023- 24, 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 location and condition for use. Ancillary charges include costs that are directly Personnel
16%
Debt Service
23%
Depreciation
9%
Gas Purchase
18%
Operations
34%
Natural Gas Expenses FY 2023-24
18

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 2023-24 was the purchase of vehicles for the police and natural gas departments, Memorial Park Bathroom project, and beginning the Gateway road project.

Long-term Debt Activity
The principal amount of the City’s outstanding debt on June 30, 2024, was as follows:
2019 Refunding Revenue Bonds $17,925,000 Secured by natural gas revenues.

Series 2022A & 2022B Lease $9,800,727 Secured by leased certain real (UAL Pension Refunding) property.

Water Refunding Project $5,268,300 Secured by water revenues.

City Hall Bonds $447,463 Secured by 2013 lease financing agreement with Compass Bank.

USDA Note $675,000 Secured by Water Fund
Infrastructure
Community Pool Debt Service $628,000 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

Scheduled principal repayments of $1,704,859 were made during fiscal year 2023-24.

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.

HISTORICAL SUMMARY OF KNOWN FACTS, DECISIONS AND

CONDITIONS
The City of Susanville continues to face significant fiscal challenges, particularly related to rising CalPERS pension costs. Revenue growth remains modest compared to increasing expenses. Prior to the COVID-19 pandemic and the statewide shutdown in March 2020, the City was actively developing an economic development plan. The pandemic led to a 15% decline in Sales and Use Tax and Transient Occupancy Tax (TOT) revenues from FY 2018–19 to FY 2019–20.

Revenue Trends
Sales Tax rebounded with increases of 7.8% in FY 2020–21, 14.9% in FY 2021–22, and

8.8% over FY 2020–21 levels in FY 2022–23. However, FY 2023–24 saw a modest decline of 2.15% due to inflationary impacts on consumer spending. TOT remained flat from FY 2019–20 to FY 2020–21, followed by growth of 9.6% in FY 2021–22, 16.4% in FY 2022– 23, and continued strength into FY 2023–24.

CalPERS Refinancing
In May 2022, the City refinanced its CalPERS Unfunded Accrued Liability (UAL), stabilizing payments during the ramp-up period. This refinancing saved over $140,000 in FY 2023–24, with cumulative savings expected to grow annually. The City is also exploring the establishment of a Section 115 trust to further mitigate future pension cost volatility.

Water Utility
The winters of 2022–23 and 2023–24 were among the wettest on record, reducing water demand. Additionally, customer habits shaped by drought regulations have further decreased usage. The Water Utility passed a rate increase in FY 2024–25 to offset revenue losses and support infrastructure improvements. This rate increase proposes to increase rates each year through FY 2028-29.

Sales Tax Measure P
In June 2022, voters approved a 1% Sales and Use Tax increase (Measure P), with advisory Measure Q recommending the funds be used to:
20

 Maintain and enhance public safety services (police and fire),  Support street infrastructure improvements,
 Promote economic development.

The City began receiving revenue from this measure in October 2022, generating:
 $1.6 million in FY 2022–23
 Over $2.3 million in FY 2023–24
These funds have provided critical stability to General Fund departments, enabling continued service delivery at expected levels.

The City of Susanville continues to face significant fiscal challenges, particularly related to rising CalPERS pension costs. Revenue growth remains modest compared to increasing expenses. Prior to the COVID-19 pandemic and the statewide shutdown in March 2020, the City was actively developing an economic development plan. The pandemic led to a 15% decline in Sales and Use Tax and Transient Occupancy Tax (TOT) revenues from FY 2018–19 to FY 2019–20.

FY 2024–25 Budget
The City Council adopted the FY 2024–25 budget on July 16, 2024, reflecting Council priorities and maintaining service levels from FY 2022–23. Key budget highlights include:
 Southeast Gateway Entrance Project $2,507,000
 Airport Taxiway B Reconstruction $520,368
 General Plan Update $400,000
 Purchase of a New Fire Engine $929,000
 Fire Department HVAC Replacement $520,000
 Johnstonville Dam $1,100,000
General Fund expenditures budget for fiscal year 2024-25 is $11,502,707, 20% more than the prior fiscal year due to these projects as well as inflationary impacts. The increase 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 by 4%, (from increase $9,520,181 to $9,941,210) primarily due to increases in property tax projections.

FY 2025–26 Outlook
While the City has experienced modest growth in property and sales tax revenues, the General Fund budget for FY 2025-26 is projected to close with an operational deficit of approximately $80,000. In response, City staff conducted a comprehensive budget analysis in June 2025 to identify one-time expenditures. These expenditures were offset using available cash and other one-time revenue sources to help stabilize the budget. 21

Looking ahead, the City recognizes the importance of maintaining long-term financial sustainability for operations. To avoid future fiscal challenges, efforts will focus on controlling expenditure growth and enhancing revenue generation. As part of this strategic shift, the City revised its mission statement and adopted a new vision statement in 2025. These updates reflect a renewed commitment to streamlining municipal services and investing our limited resources into initiatives that support economic development and revenue growth.

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.
22

BASIC FINANCIAL STATEMENTS

City of Susanville
Statement of Net Position
June 30, 2024
Governmental Business-type
Activities Activities Total
ASSETS
Cash and Investments 12,529,355 $ 11,384,452 $ 23,913,807 $ Restricted Cash and Investments - 224,708 224,708
Accounts Receivable 1,952,718 633,909 2,586,627
Interest Receivable 118,955 124,751 243,706
Prepaid Items 80,100 13,992 94,092
Prepaid Bond Insurance - 92,930 92,930
Internal Balances (1,857,864) 1,857,864 -
Inventory 30,644 54,922 85,566
Due From Other Governments - - -
Leases Receivable 160,540 - 160,540
Loans Receivable 815,119 - 815,119
Capital Assets, Not Depreciated 4,097,637 4,023,604 8,121,241 Capital Assets, Depreciated, Net 7,768,917 26,319,752 34,088,669 Total Assets 25,696,121 44,730,884 70,427,005

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charges on Refunding - 1,485,393 1,485,393
Deferred Outflows Related to Pensions 6,294,888 492,133 6,787,021 Total Deferred Outflows of Resources 6,294,888 1,977,526 8,272,414

LIABILITIES
Accounts Payable 462,895 167,117 630,012
Accrued Liabilities 308,804 9,500 318,304
Interest Payable 84,058 89,480 173,538
Deposits Payable 32,953 224,708 257,661
Unearned Revenue - 31,914 31,914
Long-Term Liabilities:

Due Within One Year 652,540 1,262,503 1,915,043
Due in More Than One Year 14,858,938 27,539,913 42,398,851 Total Liabilities 16,400,188 29,325,135 45,725,323

DEFERRED INFLOWS OF RESOURCES
Lease Related 160,540 - 160,540
Deferred Inflows Related to Pensions 6,441,421 480,115 6,921,536 Total Deferred Inflows of Resources 6,601,961 480,115 7,082,076

NET POSITION
Net Investment in Capital Assets 10,791,091 5,709,354 16,500,445 Restricted for:

Public Safety 344,292 - 344,292
Parks & Recreation 166,682 - 166,682
Housing and Economic Development 723,695 - 723,695
HOME Program 811,351 - 811,351
Traffic Safety 48,714 - 48,714
Traffic Signals 91,087 - 91,087
Streets and Roads 1,344,031 - 1,344,031
Unrestricted (5,332,083) 11,193,806 5,861,723
Total Net Position $ 8,988,860 $ 16,903,160 $ 25,892,020 The accompanying notes are an integral part of this statement. 23

City of Susanville
Statement of Activities
Year Ended June 30, 2024
Charges Operating Capital
for Grants and Grants and
Expenses Services Contributions Contributions
Governmental Activities:

General Government $ 1,062,833 $ 39,891 $ - $ -
Public Safety 6,796,637 286,594 342,532 63,250
Streets 1,592,381 - - 1,524,489
Community Services 1,591,164 263,941 - 2,505
Community Development 218,949 162,443 418,484 -
Interest Expense & Issuance Costs 362,461 - - -
Total Governmental Activities 11,624,425 752,869 761,016 1,590,244 Business-type Activities:

Water 2,106,719 2,739,816 - -
Natural Gas 3,458,750 4,473,128 - -
Airport 352,445 109,481 - 111,209
Golf Course 452,505 427,271 - -
Geothermal 132,051 99,291 - -
Total Business-type Activities 6,502,470 7,848,987 - 111,209 Total Primary Government $ 18,126,895 $ 8,601,856 $ 761,016 $ 1,701,453 General Revenues:

Taxes:

Property
Sales and Use
Transient Occupancy Taxes
Business License Taxes
Franchise
Other Taxes
Investment Income
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning of Year
Net Position - End of Year
Functions/Programs
Program Revenues
The accompanying notes are an integral part of this statement. 24

Governmental Business-type
Activities Activities Total
$ (1,022,942) $ (1,022,942) - $
(6,104,261) (6,104,261) -
(67,892) - (67,892)
(1,324,718) (1,324,718) -
361,978 361,978 -
(362,461) (362,461) -
(8,520,296) (8,520,296) -
- 633,097 633,097
1,014,378 - 1,014,378
(131,755) - (131,755)
- (25,234) (25,234)
- (32,760) (32,760)
1,457,726 - 1,457,726
(8,520,296) 1,457,726 (7,062,570)
2,951,919 2,951,919 -
4,436,457 4,436,457 -
509,758 509,758 -
273,660 273,660 -
6,673 - 6,673
23,982 - 23,982
497,377 591,535 1,088,912
(19,189) 19,189 -
8,680,637 610,724 9,291,361
160,341 2,068,450 2,228,791
8,828,519 14,834,710 23,663,229
$ 8,988,860 $ 16,903,160 $ 25,892,020
Net (Expense) Revenue and Changes in Net Position
25

City of Susanville
Balance Sheet
Governmental Funds
June 30, 2024
Gas Tax Non-major
General Special Governmental
Fund Revenue Fund Funds Total
ASSETS
Cash and Investments $ 8,788,908 $ 21,632 $ 2,804,107 $ 11,614,647 Accounts Receivable 1,329,389 221,792 395,099 1,946,280 Interest Receivable 79,947 - 28,546 108,493
Prepaid Expenditures 74,319 311 - 74,630
Inventory 30,644 - - 30,644
Due From Other Funds 291,008 - 291,008 -
Leases Receivable 160,540 - 160,540 -
Loans Receivable 52,136 762,983 - 815,119
Total Assets $ 10,806,891 $ 243,735 $ 3,990,735 $ 15,041,361

LIABILITIES
Accounts Payable $ 317,180 $ 18,955 $ 96,868 $ 433,003
Accrued Liabilities 275,050 - 275,050 -
Deposits 25,985 6,968 - 32,953
Due to Other Funds - 272,679 - 272,679
Advances from Other Funds 1,686,046 146,105 1,832,151 - Total Liabilities 2,304,261 172,028 369,547 2,845,836

DEFERRED INFLOWS OF RESOURCES
Lease Related 160,540 - 160,540 -
Unavailable Revenues - Grants 11,198 24,240 190,485 225,923 Total Deferred Inflows of Resources 171,738 24,240 190,485 386,463

FUND BALANCES
Nonspendable 157,099 311 157,410 -
Restricted 25,985 47,156 3,572,412 3,645,553
Assigned 232,135 - 66,926 299,061
Unassigned 7,915,673 (208,635) - 7,707,038
Total Fund Balances 8,330,892 47,467 3,430,703 11,809,062 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances $ 10,806,891 $ 243,735 $ 3,990,735 $ 15,041,361 The accompanying notes are an integral part of this statement. 26

City of Susanville
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2024
Fund Balances for Governmental Funds $ 11,809,062
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 22,166,542
Accumulated Depreciation (10,299,988)
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, 2024:

Compensated Absences (417,364)
Net Pension Liability (6,324,088)
Lease Financing (City Hall Project) (447,463)
Community Swimming Pool Loan (628,000)
Series 2022A & B Lease Agreement (7,654,127)
Interest Payable on Long-term Debt (84,058)
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 6,294,888
Deferred Inflows Related to Pensions (6,441,421)
Other long-term receivables are not available to pay for current period expenditures and, therefore, are reported as unavailable revenue in the funds. 225,923 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. 788,954
Net Position of Governmental Activities $ 8,988,860
The accompanying notes are an integral part of this statement. 27

City of Susanville
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2024
Gas Tax Non-major
General Special Governmental
Fund Revenue Fund Funds Total

REVENUES
Taxes and Assessments 8,182,550 $ - $ - $ 8,182,550 $
Licenses and Permits 139,565 - - 139,565
Fines and Forfeitures 20,193 - 166 20,359
Investment Earnings 371,163 (4,578) 130,786 497,371
Intergovernmental 472,794 702,604 916,188 2,091,586
Charges for Services 593,168 81,669 79,123 753,960
Total Revenues 9,779,433 779,695 1,126,263 11,685,391

EXPENDITURES
Current:

General Government 394,659 - - 394,659
Public Safety 5,716,696 - 136,805 5,853,501
Streets - 751,183 285,864 1,037,047
Community Services 1,504,198 - - 1,504,198
Community Development - - 218,949 218,949
Capital Outlay 171,597 - 346,756 518,353
Debt Service:

Principal 252,913 18,098 197,638 468,649
Interest and Fiscal Charges 325,623 16,133 39,859 381,615 Total Expenditures 8,365,686 785,414 1,225,871 10,376,971 Excess of Revenues Over (Under)
Expenditures 1,413,747 (5,719) (99,608) 1,308,420

OTHER FINANCING SOURCES (USES)
Transfers In - 269,665 237,564 507,229
Transfers Out (502,652) - (23,983) (526,635)
Total Other Financing Sources (Uses) (502,652) 269,665 213,581 (19,406) Net Change in Fund Balances 911,095 263,946 113,973 1,289,014 Fund Balances, Beginning of Year 7,419,797 (216,479) 3,316,730 10,520,048 Fund Balances, End of Year 8,330,892 $ 47,467 $ 3,430,703 $ 11,809,062 $ The accompanying notes are an integral part of this statement. 28

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, 2024
Net Change in Fund Balances - Total Governmental Funds $ 1,289,014 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 560,684
Depreciation Expense (984,684)
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 117,638
Principal payment on Community Swimming Pool Loan 80,000 Principal payment on Series 2022A and B Lease Agreement 271,011 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 (38,811)
Net Pension Liability (902,136)
Accrued Interest Payable 19,154
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 (1,160,235)
Deferred Inflows Related to Pensions 668,055
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. 118,781
The change in net position of the internal service funds is reported with governmental activities. 121,870
Change in Net Position of Governmental Activities $ 160,341 The accompanying notes are an integral part of this statement. 29

City of Susanville
Statement of Net Position
Proprietary Funds
June 30, 2024
Governmental
Activities
Internal Service
Water Natural Gas Airport Nonmajor Totals Funds
ASSETS
Current Assets:

Cash and Investments 4,366,157 $ 6,540,909 $ 112,151 $ 365,235 $ 11,384,452 $ 914,708 $ Accounts Receivable 362,314 244,076 8,668 18,851 633,909 6,438 Interest Receivable 47,995 73,248 1,007 2,501 124,751 10,462 Prepaid Expenses 5,773 7,756 40 423 13,992 5,470
Inventory 19,878 34,575 - 469 54,922 -
Total Current Assets 4,802,117 6,900,564 121,866 387,479 12,212,026 937,078 Noncurrent Assets:

Restricted Cash and Investments 46,976 177,732 - - 224,708 - Advances to Other Funds - 2,135,277 - - 2,135,277 -
Prepaid Bond Insurance - 92,930 - - 92,930 -
Capital Assets:

Non-depreciable 1,563,184 - 43,189 2,417,231 4,023,604 - Depreciable, net 7,960,468 15,611,364 2,466,044 281,876 26,319,752 - Total Capital Assets 9,523,652 15,611,364 2,509,233 2,699,107 30,343,356 - Total Noncurrent Assets 9,570,628 18,017,303 2,509,233 2,699,107 32,796,271 - Total Assets 14,372,745 24,917,867 2,631,099 3,086,586 45,008,297 937,078

DEFERRED OUTFLOWS OF RESOURCES
Deferred Charges on Refundings 590,022 895,371 - 1,485,393 - - Pension Actuarial Amounts 223,424 268,709 - 492,133 - - Total Deferred Outflows of Resources 813,446 1,164,080 - 1,977,526 - -

LIABILITIES
Current Liabilities:

Accounts Payable 87,687 24,772 1,013 53,645 167,117 29,892 Accrued Liabilities 9,500 - - - 9,500 33,754
Interest Payable 25,184 64,296 - - 89,480 -
Deposits Payable 46,976 177,732 - 224,708 - -
Due to Other Funds - - 18,329 18,329 -
Unearned Revenue - - - 31,914 31,914 -
Current Portion of Compensated Absences 3,080 7,809 - - 10,889 6,257 Current Portion of Long-term Debt 538,866 712,748 - 1,251,614 - - Total Current Liabilities 711,293 987,357 1,013 103,888 1,803,551 69,903 Noncurrent Liabilities:

Advances from Other Funds 259,084 - - 259,084 - 44,042
Compensated Absences 10,919 27,691 - - 38,610 34,179
Net Pension Liability 221,059 265,864 - 486,923 - -
Notes Payable 752,781 - - 752,781 - -
Bonds Payable 5,908,085 20,353,514 - 26,261,599 - -
Total Noncurrent Liabilities 7,151,928 20,647,069 - 27,798,997 - 78,221 Total Liabilities 7,863,221 21,634,426 1,013 103,888 29,602,548 148,124

DEFERRED INFLOWS OF RESOURCES
Pension Actuarial Amounts 217,968 262,147 - 480,115 - - Total Deferred Inflows of Resources 217,968 262,147 - 480,115 - -

NET POSITION
Net Investment In Capital Assets 3,974,516 (3,473,502) 2,509,233 2,699,107 5,709,354 - Unrestricted 3,130,486 7,658,876 120,853 283,591 11,193,806 788,954 Total Net Position $ 7,105,002 $ 4,185,374 $ 2,630,086 $ 2,982,698 $ 16,903,160 $ 788,954 Enterprise Funds
Business-type Activities
The accompanying notes are an integral part of this statement. 30

City of Susanville
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
Year Ended June 30, 2024
Governmental
Activities
Internal Service
Water Natural Gas Airport Nonmajor Totals Funds

OPERATING REVENUES
Sales and Charges for Services 2,739,816 $ 4,473,128 $ 109,481 $ 526,562 $ 7,848,987 $ 2,506,206 $ Total Operating Revenues 2,739,816 4,473,128 109,481 526,562 7,848,987 2,506,206

OPERATING EXPENSES
Purchases of Natural Gas - 1,033,932 - - 1,033,932 -
Administration 1,419,552 1,268,879 123,399 558,137 3,369,967 1,551,835 Insurance Costs and Claims - - - - - 867,379
Depreciation and Amortization 412,700 458,933 228,660 26,201 1,126,494 - Total Operating Expenses 1,832,252 2,761,744 352,059 584,338 5,530,393 2,419,214 Operating Income (Loss) 907,564 1,711,384 (242,578) (57,776) 2,318,594 86,992

NONOPERATING REVENUES (EXPENSES)
Interest Income 222,670 349,379 3,089 16,397 591,535 34,661 Interest Expense (274,467) (697,006) (386) (218) (972,077) - Other Revenues - - - - - -
Total Nonoperating Revenues (Expenses) (51,797) (347,627) 2,703 16,179 (380,542) 34,661 Income Before Capital Contributions
and Transfers 855,767 1,363,757 (239,875) (41,597) 1,938,052 121,653 Capital Contributions - - 111,209 - 111,209 -
Transfers In - - - 19,189 19,189 217
Transfers Out - - - - - -
Change in Net Position 855,767 1,363,757 (128,666) (22,408) 2,068,450 121,870 Net Position, Beginning of Year 6,249,235 2,821,617 2,758,752 3,005,106 14,834,710 667,084 Net Position, End of Year $ 7,105,002 $ 4,185,374 $ 2,630,086 $ 2,982,698 $ 16,903,160 $ 788,954 Business-type Activities
Enterprise Funds
The accompanying notes are an integral part of this statement. 31

City of Susanville
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2024
Governmental
Activities
Internal Service
Water Natural Gas Airport Nonmajor Totals Funds
Cash Flows from Operating Activities
Receipts from Customers and Users 2,679,768 $ 4,512,264 $ $ 107,416 $ 606,785 $ 7,906,233 $ 2,506,769 Payments to Suppliers and Contractors (1,347,640) (2,273,737) (105,584) (395,213) (4,122,174) (1,312,775) Payments to Employees (516,403) (494,083) (31,101) (135,931) (1,177,518) (1,067,050) Net Cash Flows from Operating Activities 815,725 1,744,444 (29,269) 75,641 2,606,541 126,944 Cash Flows from Noncapital Financing Activities
Transfers from (To) Other Funds - - - 19,189 19,189 217 Payments on Long-term Debt (44,015) (45,049) - - (89,064) - Payments Received from (Paid to) Other Funds (20,802) 171,420 - 18,329 168,947 (3,529) Net Cash Flows from Noncapital Financing Activities (64,817) 126,371 - 37,518 99,072 (3,312) Cash Flows from Capital Financing Activites
Acquisition of Capital Assets - (97,376) - (61,074) (158,450) - Capital Grants - - 111,209 - 111,209 -
Interest Paid (226,007) (655,401) (386) (218) (882,012) - Proceeds from Insurance Reimbursement - - - - -
Payments on Long-term Debt (478,996) (653,420) - - (1,132,416) - Net Cash Flows from Capital Financing Activities (705,003) (1,406,197) 110,823 (61,292) (2,061,669) - Cash Flows from Investing Activities
Interest Received 211,189 318,615 2,610 14,783 547,197 32,271 Net Increase (Decrease) in Cash and Cash Equivalents 257,094 783,233 84,164 66,650 1,191,141 155,903 Cash and Cash Equivalents - Beginning of Year 4,156,039 5,935,408 27,987 298,585 10,418,019 758,805 Cash and Cash Equivalents - End of Year $ 4,413,133 $ 6,718,641 $ 112,151 $ 365,235 $ 11,609,160 $ 914,708 Reconciliation of Operating Income (Loss) to Net
Cash Provided (Used) by Operating Activities:

Operating Income (Loss) $ 907,564 $ 1,711,384 $ (242,578) $ (57,776) $ 2,318,594 $ 86,992 Adjustments to Reconcile Operating Income (Loss)
to Net Cash Provided by Operating Activities:

Depreciation 412,700 458,933 228,660 26,201 1,126,494 - Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (59,140) 37,554 (2,065) 76,655 53,004 563 (Increase) Decrease in Prepaids (249) (5,500) (5) 115 (5,639) 5,663 (Increase) Decrease in Inventory (2,977) 36,310 - 2,792 36,125 - (Increase) Decrease in Deferred Outflows - Pensions 759,105 739,993 - - 1,499,098 - Increase (Decrease) in Accounts Payable 53,267 (5,405) (13,281) 24,086 58,667 (3,817) Increase (Decrease) in Accrued Liabilities 4,000 - - - 4,000 29,104 Increase (Decrease) in Deposits Payable (908) 1,582 - - 674 Increase (Decrease) in Unearned Revenue - - - 3,568 3,568 Increase (Decrease) in Compenstated Absences 8,387 (7,947) - - 440 8,439 Increase (Decrease) in Net Pension Liability (489,481) (463,604) - - (953,085) - Increase (Decrease) in Deferred Inflows - Pensions (776,543) (758,856) - - (1,535,399) - Net Cash Provided by Operating Activities $ 815,725 $ 1,744,444 $ (29,269) $ 75,641 $ 2,606,541 $ 126,944 Noncash Capital and Related Financing Activities
Amortization Related to Long-term Debt $ 49,176 $ 42,637 $ - $ - $ 91,813 $ - Business-type Activities
Enterprise Funds
The accompanying notes are an integral part of this statement. 32

City of Susanville
Statement of Fiduciary Net Position
Custodial Funds
June 30, 2024
Custodial Funds
ASSETS
Cash and Investments $ 1,385,424
Accounts Receivable 198,584
Interest Receivable 13,145
Total Assets 1,597,153

LIABILITIES
Accounts Payable 8,196
Due to City of Susanville -
Total Liabilities 8,196

NET POSITION
Restricted
Held for the Benefit of Others 1,588,957
Total Net Position $ 1,588,957
The accompanying notes are an integral part of this statement. 33

City of Susanville
Statement of Changes in Fiduciary Net Position
Custodial Funds
Year Ended June 30, 2024
Custodial Funds

ADDITIONS
Contributions:

Donations and Other Charges 5,142,570 $
Investment Earnings:

Interest Income 25,653
Total Additions 5,168,223

DEDUCTIONS
General and Administrative 3,874,925
Total Deductions 3,874,925
Net Increase (Decrease) in Net Position 1,293,298
Net Position, Beginning of Year 295,659
Net Position, End of Year $ 1,588,957
The accompanying notes are an integral part of this statement. 34

City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2024

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

City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2024

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

City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2024

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.

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
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 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.
37

City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued 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

City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2024

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

City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2024

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.

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 40

City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2024

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued 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, 2024 the balances of the lease receivable and deferred inflow of resources were $160,540.

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, 2024, consist of the following:

B. Deposits
The carrying amount of the City’s deposits was $735,362 at June 30, 2024. Bank balances before reconciling items amounted to $934,731 at June 30, 2024. 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.

Governmental Business-Type Fiduciary
Activities Activities Funds Total
Cash and Investments $ 12,529,355 $ 11,384,452 $ 1,385,424 $ 25,299,231 Restricted Cash and Investments - 224,708 - 224,708
Total Cash and Investments $ 12,529,355 $ 11,609,160 $ 1,385,424 $ 25,523,939 Government-wide
Statement of Net Position
Cash on Hand $ 1,450
Deposits with Financial Institutions 735,362
Local Agency Investment Fund 24,787,127
Total Cash and Investments $ 25,523,939
41

City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2024

2. CASH AND INVESTMENTS – Continued
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
12 Months 13 to 36 37 to 60 More than
Investment Type Total Or Less Months Months 60 Months
LAIF $ 24,787,127 $ 24,787,127 $ - $ - $ - Total Investments $ 24,787,127 $ 24,787,127 $ - $ - $ - Remaining Maturity (in Months) 42

City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2024

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.

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.

Minimum Exempt from
Investment Type Total Legal Rating Rating
LAIF 24,787,127 N/A 24,787,127 Total Pooled Investments 24,787,127 $ $ 24,787,127 43

City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2024

2. CASH AND INVESTMENTS – Continued
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, 2024 are subject to the fair value hierarchy measurements (LAIF only).

3. LOANS RECEIVABLE
As of June 30, 2024, total Loans Receivable of $815,119 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, 2024.

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 $604,983 as of June 30, 2024.

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, 2024.

4. CAPITAL ASSETS
The following represents capital asset activity for the fiscal year ended June 30, 2024:
44

City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2024

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 158,289 354,137 512,426 - Total Capital Assets Not Depreciated 3,743,500 354,137 4,097,637 - Capital Assets, Being Depreciated:

Infrastructure 8,633,378 - 8,633,378 - Buildings 1,092,436 - 1,092,436 - Machinery and Equipment 4,957,142 206,547 5,163,689 - Other Improvements 3,179,402 - 3,179,402 - Total Capital Assets Being Depreciated 17,862,358 206,547 18,068,905 - Less Accumulated Depreciation:

Infrastructure (2,279,189) (585,591) (2,864,780) - Buildings (1,076,904) (4,905) (1,081,809) - Machinery and Equipment (3,367,474) (312,753) (3,680,227) - Other Improvements (2,591,737) (81,435) (2,673,172) - Total Accumulated Depreciation (9,315,304) (984,684) (10,299,988) - Net Capital Assets Being Depreciated 8,547,054 (778,137) 7,768,917 - Total Capital Assets $ 12,290,554 $ (424,000) $ 11,866,554 - $ Beginning Ending
Business-type Activities: Balance Increases Decreases Balance Capital Assets, Not Depreciated:

Land $ 4,023,604 $ - $ 4,023,604 - $
Construction in Progress - - - - Total Capital Assets Not Depreciated 4,023,604 - 4,023,604 - Capital Assets, Being Depreciated:

Infrastructure 29,407,650 35,896 29,443,546 - Buildings 862,483 - 862,483 - Machinery and Equipment 5,548,626 122,553 5,671,179 - Other Improvements 13,550,824 - 13,550,824 - Total Capital Assets Being Depreciated 49,369,583 158,449 49,528,032 - Less Accumulated Depreciation:

Infrastructure (8,988,091) (539,541) (9,527,632) - Buildings (602,918) (13,834) (616,752) - Machinery and Equipment (4,975,233) (113,572) (5,088,805) - Other Improvements (7,515,544) (459,547) (7,975,091) - Total Accumulated Depreciation (22,081,786) (1,126,494) (23,208,280) - Net Capital Assets Being Depreciated 27,287,797 (968,045) 26,319,752 - Total Capital Assets $ 31,311,401 $ (968,045) $ 30,343,356 - $ 45

City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2024

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 54,075 $
Public Safety 245,978
Streets 597,665
Community Services 86,966
Total Depreciation Expense 984,684 $
Business-type Activities
Water 412,700 $
Natural Gas 458,933
Airport 228,660
Golf Course 24,062
Geothermal 2,139
Total Depreciation Expense 1,126,494 $
Beginning Ending Due in
Governmental Activities Balance Additions Retirements Balance One Year Compensated Absences $ 410,550 $ 47,250 $ 457,800 - $ $ 137,340 Net Pension Liability 5,421,952 902,136 6,324,088 - -
Direct Borrowings:

Lease Financing (City Hall Project) 565,101 (117,638) - 447,463 120,783 Community Swimming Pool Loan 708,000 (80,000) - 628,000 82,000 Series 2022A & B Lease Agreement 7,925,138 (271,011) - 7,654,127 312,417 Total Government Activities $ 15,030,741 $ 949,386 $ (468,649) $ 15,511,478 $ 652,540 46

City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2024

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
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 $ 447,463 $ 32,064 $ 479,527
Fiscal Year Ending
June 30, Principal Interest Total
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 $ 628,000 $ 71,990 $ 699,990
47

City of Susanville
Notes to the Financial Statements
Year Ended June 30, 2024

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 $4.5 million per year. For the 2023-24 fiscal year, net revenues were approximately $2.17 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
2025 400,034 343,026 743,060
2026 414,036 329,024 743,060
2027 428,527 314,533 743,060
2028 443,526 299,534 743,060
2029 459,049 284,011 743,060
2030 - 2034 2,547,792 1,167,508 3,715,300
2035 - 2039 3,025,977 689,323 3,715,300
2040 - 2042 2,081,785 147,405 2,229,190
Totals $ 9,800,726 $ 3,574,364 $ 13,375,090
Beginning Ending Due in
Business-type Actvities Balance Additions Retirements Balance One Year Compensated Absences $ 49,059 $ 440 $ 49,499 - $ $ 10,889 Net Pension Liability 1,440,008 (953,085) - 486,923 - 2019 Natural Gas Revenue Refunding Bonds 18,485,000 (560,000) - 17,925,000 575,000 Premium on Bonds 2,148,657 (93,420) - 2,055,237 93,420
2019 Water Revenue Refunding Bonds 5,635,600 (367,300) - 5,268,300 377,500 Direct Borrowings:

USDA Note Payable 697,000 (22,000) - 675,000 23,000
Note Payable (Land Purchase) 285,554 (89,696) - 195,858 95,077 Series 2022A & B Lease Agreement 2,235,663 (89,064) - 2,146,599 87,617 Total Business-type Activities $ 30,976,541 $ (2,174,565) 440 $ $ 28,802,416 $ 1,262,503 48