CITY OF WILLIAMS
City Council Agenda
810 E Street/P.O. Box 310, Williams, CA 95987
CITY COUNCIL
COUNCIL CHAMBERS
WEDNESDAY, FEBRUARY 18, 2026
OPEN SESSION
6:00 PM
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https://www.cityofwilliams.org/government/city_council/agenda_minutes/index.php#outer-211 A. CALL TO ORDER
B. ROLL CALL
C. PLEDGE OF ALLEGIANCE
D. PUBLIC COMMENT
This is an opportunity for the public to speak to the Council on any item other than those listed for public hearing on this Agenda. Speakers are requested to use the podium in front of the Council and to begin by stating their name, whether they reside in Williams and the name of the organization they represent if any. The mayor may impose a time limit on any speaker depending on the number of people wanting to speak and time available for the rest of the agenda. In the event comments are related to an item scheduled on the agenda, speakers should wait to make their comments until that item is considered.
E. PROCLAMATION
1. Authorize the Mayor to sign the Proclamation Honoring Congressman Doug LaMala.
F. CONSENT
These items are routine in nature and will be approved by a single action unless an individual Council Member or member of the public requests an item be removed from the consent calendar for special consideration.
2. Approve the minutes of the Regular City Council Meeting of January 21, 2026.
G. OLD BUSINESS
3. Receive Treasurers Investment Report and Monthly Register for December 2025.
4. Assign Council Members as Representatives to Various Boards and Committees.
H. NEW BUSINESS
5. Review and Accept the FY 2023-2024 audited financial statements performed in accordance with Government Auditing Standards. Staff also recommends that City Council accepts the annual reports for transaction and Use Taxes and Transient Occupancy Taxes as required per Municipal Code section 3.18.120.
6. Adopt Resolution 26-03, a Resolution of the City Council of the City of Williams, authorizing the City Manager to execute and submit grant and loan application and related documents through the State Water Resources Control Board Clean Water State Revolving Fund.
7. Resolution 26-04, Recognizing "City Manager" and "City Administrator" as interchangeable titles for purposes of administration, signature authority, and official City business.
8. Approve amendment "Section 6.c. of the Joint Powers Agreement" to change the termination date of April 22, 2026, to April 22, 2031.
9. Authorize city staff to collaborate with Tri Countes Community Action Partnership for the Extreme Heat and Community Resilience Grant.
10. Appoint Yvonne Kimball to the position of City Manager; review and authorize Mayor to sign employment agreement between the City and Yvonne Kimball.
I. REPORTS
1. City Attorney
2. Chief of Jackets at City Hall
COUNCIL REPORTS AND COMMITTEE UPDATES
1. Council Member Parsons
2. Council Member Belmontes Leyva
3. Council Member Dunlap
4. Council Member Sellers, Jr.
5. Council Member Troughton, Jr.
K. STAFF GENERAL REPORTS AND DISCUSSION
1. Acting City Manager
2. Police Chief
3. Fire Chief
4. City Planner
5. Finance Director
6. Parks & Recreation Director
L. ADJOURNMENT
I, Mariana Pineda, City Clerk for the City of Williams, declare that the foregoing Agenda for the February 18, 2028, Regular Meeting of the Williams City Council was posted on Friday February 13, 2026, at the office of the City of Williams, 810 E St., Williams, California, 95987 and was available for public review at that location.
Dated: February 13, 2026 Mariona Pineda
Mariana Pineda, City Clerk
In compliance with the Americans with Disabilities Act, persons needing a disability-related modification or accommodation, including xiliary aids or services, to participate in this meeting, may contact City Clerk Mariana Pineda, at (530) 473-2955 or (530) 235-3276 x at (530) 473-2445 or by email to [email protected] at least 48 hours prior to the meetir 2026 CITY COUNCIL MEETING SCHEDULE
January 21, 2026 April 15, 2026 July 15, 2026 October 21, 2026 February 18, 2026 May 20, 2026 August 19, 2026 November 18, 2026 March 18. 2026 June 17, 2026 September 16, 2026 December 16. 2026 CITY OF WILLIAMS DATE: February 18, 2026
City Council ITEM: 1.
Agenda Report CATEGORY: Proclamation
SUBJECT: Proclamation Honoring Congressman Doug LaMalfa
BACKGROUND
Congressman Doug LaMalfa has faithfully served the people of Northern California with integrity, dedication, and a deep commitment to the values of rural and small-town communities.
Throughout his tenure in public office, he has represented the interests of agricultural producers, small businesses, veterans, first responders, and working families across the region.
During his time in office, Congressman LaMalfa has advocated for policies and initiatives that address the unique needs of rural communities, including water rights protections, wildfire recovery efforts, infrastructure improvements, forest management, and economic development.
DISCUSSION
Congressman LaMalfa has worked diligently to ensure that the voices of small and rural communities were heard at the federal level. His leadership supported transportation projects, water storage initiatives, rural broadband expansion, and disaster relief efforts that have directly benefited communities throughout Northern California, including the City of Williams.
His advocacy for farmers and ranchers, commitment to strengthening regional resilience, and dedication to preserving the heritage and prosperity of Northern California reflect a sincere commitment to public service.
The attached Proclamation formally recognizes and honors Congressman Doug LaMalfa for his legacy of leadership, service, and advocacy on behalf of the residents of Northern California.
FISCAL IMPACT
No fiscal impact.
RECOMMENDATION
If it pleases the Council, staff respectfully requests that the attached Proclamation honoring Congressman Doug LaMalfa be approved by the City Council.
Prepared and submitted by: Mariana Pineda, City Clerk
Attachment: Proclamation
PROCLAMATION
HONORING CONGRESSMAN DOUG LAMALFA
FOR HIS DEDICATED SERVICE TO THE COMMUNITIES OF NORTHERN
CALIFORNIA
WHEREAS, Congressman Doug LaMalfa faithfully served the people of Northern California with integrity, dedication, and a deep commitment to the values of rural and small-town communities; and
WHEREAS, throughout his tenure in public office, Congressman LaMalfa has been a consistent advocate for the agricultural community, small businesses, water rights, wildfire recovery efforts, infrastructure improvements, and economic development across Northern California; and WHEREAS, he worked diligently to ensure that the voices of small and rural communities were heard at the federal level, recognizing the unique challenges they face and championing policies that support local livelihoods and strengthen regional resilience; and WHEREAS, Congressman LaMalfa demonstrated steadfast support for farmers, ranchers, veterans, first responders, and working families, helping secure resources and federal assistance during times of crisis, including natural disasters and economic hardship; and WHEREAS, his leadership contributed to advancing transportation projects, water storage initiatives, forest management reforms, and rural broadband expansion, improving the quality of life for residents throughout the region; and
WHEREAS, Congressman LaMalfa's dedication to public service reflected a sincere commitment to preserving the heritage, independence, and prosperity of Northern California's small communities.
NOW, THEREFORE, BE IT PROCLAIMED that the City of Williams hereby honors the life of Congressman Doug LaMalfa for his legacy of service, leadership, and advocacy on behalf of the people of Northern California; and
IN WITNESS WHEREOF, this Proclamation is hereby adopted this 18th day of February 2026.
Mayor, Kate Dunlap Mayor Pro Tem, Maria Belmontes Leyva Council Member, Don Parsons Council Member, Alfred Seller, Jr.
Council Member John Troughton, Jr.
CITY OF WILLIAMS DATE: February 18, 2026
City Council ITEM: 2.
Agenda Report CATEGORY: Consent
SUBJECT: Consent
RECOMMENDED ACTION
It is Recommended that Council Approve the following:
• Approve the Minutes of the Regular City Council Meeting of January 21, 2026.
Submitted by: Mariana Pineda, City Clerk
Attachments: (1)
CITY OF WILLIAMS
City Council Minutes
810 E Street/P.O. Box 310, Williams, CA 95987
CITY COUNCIL
COUNCIL CHAMBERS
WEDNESDAY, JANUARY 21, 2026
OPEN SESSION
6:00 PM
CALL TO ORDER: Mayor Belmontes Leyva called the regular meeting to order at 6:00 pm.
ROLL CALL: Council Members present, Don Parsons, Kate Dunlap, Maria Belmontes Leyva, Alfred Sellers, Jr., and John Troughton, Jr.
PLEDGE OF ALLEGIANCE: Mayor Belmontes Leyva invited everyone to join her in the Pledge of Allegiance.
HOLD ELECTION OF MAYOR AND MAYOR PRO TEM: Mayor Belmontes Leyva made a motion, nominating Mayor Pro Tem Dunlap for Mayor, seconded by Council Member Parsons.
Motion passed 4-1 by the following roll-call vote:
AYES: Council Members Belmontes Leyva, Dunlap, Parsons and Sellers, Jr.
NOES: None.
ABSTAIN: Council Member Troughton, Jr.
ABSENT: None.
Newly appointed Mayor Dunlap made a motion, nominating Council Member Belmontes Leyva to serve as Mayor Pro Tem, seconded by Council Member Parsons. Motion passed 5-0 by the following roll-call vote:
AYES: Council Members Belmontes Leyva, Dunlap, Parsons and Sellers, Jr. and Troughton, Jr.
NOES: None.
ABSTAIN: None.
ABSENT: None.
PUBLIC COMMENT
Mayor Dunlap reviewed the public comment procedures and noted that additional rules would apply during the later Proposition 218 public hearing, including the use of a certified translator, time limits, and Council's practice of not engaging with speakers during the hearing.
Caroline Vann, a Williams resident, addressed the Council regarding employee furloughs and asked whether Council Members had voted to reduce their own compensation.
Mayor Pro Tem Belmontes Leyva stated that she had voluntarily reduced her compensation and further stated that no other Council Members had volunteered to do so.
There being no further public comments, the Mayor closed the public comment period.
CONSENT
1. Approve the Minutes of the Regular Council Meeting of November 19.2025.
2. Approve the Minutes of the Regular City Council Meeting of December 10, 2025.
3. Approve the Minutes of the Special Council Meeting of December 10, 2025.
DISCUSSION: Mayor Pro Tem Belmontes Leyva asked that the minutes be corrected to the November 19, 2025, meeting. Specifically, to identify Council members who made the motions on page 6, item 7 and to clarify on page 7 the motion was made by Council Member Dunlap and seconded by Council Member Parsons
ACTION: Council Member Parsons., made a motion to approve with the correction, seconded by Council Member Troughton, Jr., to approve the consent agenda. Motion passed 5-0 by the following roll-call vote:
AYES: Council Members Belmontes Leyva, Dunlap, Parsons and Sellers, Jr. and Troughton, Jr.
NOES: None.
ABSTAIN: None.
ABSENT: None.
PUBLIC HEARING
4. Continue and hold a public hearing pursuant to Proposition 218 for the proposed water and sewer rate adjustments.
• Receive information from the City Clerk or Deputy City Clerk whether written protests were received by a majority of affected property owners or tenants. • Adopt Resolution No. 26-01, a Resolution of the City of Williams sewer and water service fees.
DISCUSSION: The public hearing was opened at 6:09 p.m. Mayor Dunlap outlined the public hearing procedures, including time limits, the use of a certified interpreter, and that Council would refrain from engaging in dialogue with speakers during the hearing.
Finance Director Greenbaum presented the continued public hearing regarding the proposed water and sewer rate adjustments pursuant to Proposition 218. He explained that the hearing was a continuation of the November 19, 2025, public hearing and was extended to provide additional public outreach and encourage further participation. He reviewed the legal noticing requirements, rate study methodology, and protest procedures, noting that notices were mailed to all affected parcels and that information was made available on the City's website.
He explained the proposed five-year phased rate increases and provided comparisons of current and future costs, including examples demonstrating the cost per gallon under current and proposed rates.
Staff stated that the rate adjustments were necessary due to insufficient revenues to fund ongoing 2 operations, rising regulatory compliance costs, and the need to ensure long-term financial stability and integrity of the City's water and sewer systems.
He reviewed the protest procedures and validation standards, including that one written protest was permitted per parcel, that minor errors were accepted if parcel ownership was identifiable, and that duplicate protests were not counted. Staff explained that a majority protest would require 828 valid protests, representing more than 50 percent of the affected parcels.
Members of the community expressed concerns regarding the affordability of current and proposed water and sewer rates. Several speakers stated that they had previously experienced unusually high utility bills and questioned whether residents would be reimbursed for overpayments after billing issues or property inspections were later resolved. Concerns were raised about the consistency of meter inspections and the impact of billing increases on household finances.
Residents also questioned why water and sewer rates in the City of Williams are higher than those in surrounding communities, including nearby cities that are larger or smaller in size. Speakers asked for clarification regarding how rates are determined and whether system size, infrastructure conditions, or operational practices contribute to cost differences. Additional concerns were expressed about billing increases occurring even when water usage was reportedly low.
Community members acknowledged the City's infrastructure needs but emphasized the importance of considering the financial realities faced by residents, particularly low-income households and farmworker families. Speakers urged Council to weigh basic household needs, such as access to potable water and sanitation, when considering rate increases.
Concerns were also raised regarding the overall magnitude of the proposed five-year rate increase and how it compares to wage growth experienced by residents, particularly those employed by public agencies. Questions were posed regarding long-term water supply sustainability, potential future costs related to drilling additional or deeper wells, and whether rate increases could continue beyond the current proposal.
Closed session was closed at 6:42pm
Mr. Greenbaum reported that 328 written protests had been received and tabulated. Staff stated that even if all protests were deemed valid, the total remained well below the 828-parcel majority protest threshold, and therefore Council was authorized to proceed with consideration of the proposed rate adjustments.
Council Members discussed the proposed rate adjustments and the financial condition of the City's water and sewer systems.
Council Member Parsons stated that while he did not support increases in taxes or rates, he believed the increases were necessary to avoid the risk of the State assuming control of the City's water system, which would result in significantly higher costs to residents.
Mayor Dunlap stated that she was familiar with water and sewer infrastructure conditions in surrounding communities and cited system failures in nearby jurisdictions. She emphasized that failure of the City's systems would impact residents first and foremost, not City officials or staff, and stated that maintaining local control was critical.
Mayor Pro Tem Belmontes-Leyva echoed the concerns raised by Council Member Parsons and Mayor Dunlap and stated that the City was not in a position to jeopardize its existing infrastructure by delaying necessary rate adjustments.
Council Member Sellers, Jr., stated that he did not support increases any more than the residents but expressed confidence in the process and the staff's analysis and recommendations.
Council Member Troughton stated that the City currently has several inactive wells and faces significant costs to rehabilitate its water system. He further stated that the wastewater treatment system has required major investment due to regulatory mandates and that failure to adopt the rate adjustments would result in significant hardship for the City's residents and future development.
ACTION: Council Member Troughton Jr., made a motion, seconded by Council Member Dunlap, to Adopt Resolution No. 26-01, a Resolution of the City Council of the City of Williams adopting an increase to the City of Williams sewer and water service fees. Motion passed 5-0 by the following roll-call vote:
AYES: Council Members Belmontes Leyva, Dunlap, Parsons and Sellers, Jr. and Troughton, Jr.
NOES: None.
ABSTAIN: None.
ABSENT: None.
OLD BUSINESS
5. Receive Treasurers Investment Report and Monthly Register for November 2025.
DISCUSSION: Finance Director gave the treasurers report for the month ending November 2025.
He continued to provide an economic and revenue update through the end of December 2025. Mr.
Greenbaum said there was no change from the previous meeting although there was slight economic growth with cooling consumer spending.
Finance Director also gave City Council an update on the Transient Occupancy Tax which have been updated to include actual receipts through the end of December 2025.
ACTION: No action needed at this time.
NEW BUSINESS
6. Assign Council Members as Representatives to Various Boards and Committees.
DISCUSSION: Mayor Dunlap explained she would like Council Members to please email her with their requests on what committees they would like to be part of. She will review and assign accordingly.
ACTION: No action was needed at this time.
4 7. Accept the Williams New Well and Pipeline Replacement Project as complete and authorize City Manager to take any appropriate action necessary to close out the project with the contractor and the grantor.
DISCUSSION: Finance Director Greenbaum explained this item is for the acceptance of the new well and pipeline replacement project. I would like everybody to know that project was fully funded by grant money. The project was for $5,250,000, and the city was able to get secured that money.
It is staff's recommendation to accept the Williams new Well and Pipeline Replacement Project as complete and authorize the City Manager to take any appropriate action necessary to close out the project with the contractor and grantor.
Mayor Dunlap thanked Finance Director Greenbaum for presenting that and providing the summarization of some of the details regarding the Well 11 project.
Mayor Pro Tem Belmontes Leyva thanked all staff for their efforts in securing not only this grant but all that the City has been able to secure.
ACTION: Council Member Belmontes Leyva made a motion, seconded by Council Member Troughton, Jr., to accept the Williams new Well and Pipeline Replacement Project as complete and authorize the City Manager to take any appropriate action necessary to close out the project with the contractor and grantor. Motion passed 5-0 by the following roll-call:
AYES: Council Members Belmontes Leyva, Dunlap, Parsons and Sellers, Jr. and Troughton, Jr.
NOES: None.
ABSTAIN: None.
ABSENT: None.
8. Adopt Resolution 26-02, a Resolution of the City Council of the City of Williams Confirming and Clarifying Signature Authority for the Williams New Well and Pipeline Replacement Project and Affirming Resolution No. 21-12.
DISCUSSION: Finance Director Greenbaum stated this resolution is needed so just to give you a little bit of background, we need signature authority. The City did recently change the name of the City Administrator title to City Manager. Chris is functioning as the current Acting City Manager and in order to have the final drawdowns and everything done we need this resolution authorizing him as the signer.
Staff's recommendation is to adopt Resolution 26-02.
ACTION: Council Member Parsons made a motion, seconded Council Member Dunlap, to adopt Resolution 26-02, a Resolution of the City Council of the City of Williams Confirming and Clarifying Signature Authority for the Williams New Well and Pipeline Replacement Project and Affirming Resolution No. 21-12.. Motion passed 5-0 by the following roll-call vote:
AYES: Council Members Parsons, Belmontes-Leyva, Dunlap, Sellers, Jr., Troughton, Jr.
NOES: None.
ABSTAIN: None
ABSENT: None.
5 REPORTS
City Attorney- Mr. Andreas Booher had nothing additional to report.
Chief of the Jackets at City Hall- Lupita Rivera gave City Council and shared their experience at the Police Department earlier that afternoon. Jackets at City Hall were very thankful for the opportunity to tour and learn more about the Police Department.
Council Member Parsons- met with Congressman Thompson one Saturday afternoon and here in Williams. Today he met with Senator Megan Dolly, some of our office staff, and also with Senator Gallagher's office staff up in Glenn County at the Glenn County Veterans Stand-Down.
Council Members Parsons wanted to let the public know that the Fire Protection Authority has awarded the contract to Geno Construction, they will be constructing the new fire station over on the east side of town of Husted Road and Ella Street. Groundbreaking will probably take place February or first part of March. He stated that Fire Chief Gilbert is considering Ella Street to Bill Vann Way and dedication the new Fire Department to late Congressman Doug LaMalfa.
Council Member Belmontes Leyva - attended regular meetings. She thanked Police Chief Miller and Officer Vega for having her and the Jackets at City Hall.
Council Member Sellers, Jr.- attended regular meetings.
Council Member Troughton, Jr.- attended regular meetings.
Mayor Dunlap - attended regular meetings. She got to spend some time with Congressman Mike Thompson and said she was very grateful for that time. He talked about what is relevant to his district.
STAFF GENERAL REPORTS AND DISCUSSION:
Acting City Manager reported and updated City Council on Well 11 and the E Street Project. He stated that council will need to start discussions about finding a construction management to manage that project.
Police Chief Miller- gave City Council an update on the Police Department.
Fire Chief - was absent.
City Planner Ramsaur-gave an update on the Planning Department and the status on the Old Bowling Alley.
Finance Director- gave an update on the Finance Department.
Parks and Recreation Director- was absent.
Mayor Dunlap asked for any public comment before adjourning for a five-minute break.
Citizen Stephen Dieves asked if the City can make a proclamation or something to recognize the service that Congressman LaMalfa gave to our community.
6 Mayor Dunlap agreed with
With no public comment she adjourned the regular session meeting at 7:35pm to a five minute break and will convening to Closed Session at 7:40pm
CLOSED SESSION:
1. PUBLIC EMPLOYEE APPOINTMENT (Gov. Code § 54957)
Title: City Manager
2. CONFERENCE WITH LABOR NEGOTIATORS (Gov't. Code Sec. 54957.6) Agency designated representatives: Acting City Manager.
Employee Organizations: Miscellaneous Employees Association and Police Officers Association.
Mayor Dunlap reconvened the meeting to open session at 8:30 pm reporting that City Council gave staff direction on item I of the Closed Session agenda and voted to remove the 10% furlough.
ADJOURNMENT:
Mayor Dunlap adjourned the meeting at 8:32pm
Kate Dulap, Mayor
Mariana Pineda, City Clerk
7 CITY OF WILLIAMS DATE: February 18, 2026
City Council ITEM #: 3.
Agenda Report CATEGORY: Old Business
SUBJECT: Treasurer's Investment Report and Monthly Register - December 2025 BACKGROUND:
The attached report provides the most current information on the City's investments and the check egister report for December 2025
Fence insition Done deposits and investment descried earned mom aro City's Investment Policy.
Also included is a monthly update of the City's Sales Taxes and Transient Occupancy Taxes (TOT) projections which can have a material impact on the City's annual general fund revenues. The attached Fiscal Year 2026 analysis has been updated to include receipts received through the end of January 2026.
SALES TAX UPDATE:
Through the end of January 2026, the City has received five sales tax payments so far this year epresenting 42% of the annual sales taxes.
eprese provided by the state and ta not yet refiest actual sales act ey. or thier are advastinates are revised quarterly. Early estimates can fluctuate significantly due to the volatility of sales tax revenues and the continually changing economic environment. Based on the sales taxes received through January 2026, sales tax revenues are currently trending right on budget with projections trending only $2,460 higher than budget.
TRANSIENT OCCUPANCY TAXES UPDATE:
These revenues have been updated to include actual receipts through the end of January 2026. The current forecast is based on projections for each hotel adjusted for the varying number of payments received to date. TOT revenues are currently trending right on budget with projections only $3,516 higher than budget. This revenue source can fluctuate from month to month depending on travel activity and local lodging demand.
DISCUSSION:
The City invests its surplus funds in various financial institutions in accordance with the City's approved investment policy. The City's surplus funds are held in the Local Agency Investment Fund and California CLASS which are part of a Pooled Money Investment Accounts (PMIA) with other participating government agencies.
Based on current budget projections, the City's cash liquidity is sufficient to cover the expenditures anticipated for the next six months.
The attached report provides the most current information on the City's investments. The deposits and investments described in the attached report comply with the City's Investment Policy.
RECOMMENDED ACTION:
Staff recommends that City Council accept the monthly Treasurer's Investment and Register Reports.
Prepared and submitted by: Rex Greenbaum, Finance Director Attachments): Treasurer's Monthly Cash Summary
Updated Sales Taxes and Transient Occupancy Taxes Projections Monthly Check Register Report
CITY OF WILLIAMS
SUMMARY OF CASH AND INVESTMENTS
As of December 31, 2025
CASH ACCOUNTS
US Bank - Business Checking $ 81,596
US Bank - General Checking (City Treasury) $ 1,396,249
Total Cash 1,477,846
INVESTMENT PORTFOLIO
Description Interest
-
Local Agency Investment Fund (LAIF) 4.03% $ 4,608,345
California CLASS Funds 3.88% 4,639,466
Total Investments 9,247,811
Cash & Investments $ 10.725,657
Soneral alcano intent of an it verging the General Fund was as folows:
General Fund Cash & Investment Balances $ 4,834,150
Less Storm Drain Deficit (Fund 273) (63,161)
Less Street Cash Deficit (Fund 290)* (1,421,990)
Less Morning Star Street Loan (Fund 290)* $ (422,464)
Total Deficits $ (1,907,615)
Net General Fund Balance $ 2,26,535
Remaining Pledged Funds for E Street Project (Total pledge of $2,000,000) 968,744 Adjusted General Fund Balance 1,957,791
* Total E Street Project Expenditures included in Deficit $ 1,031,2567 Morning Star Loan for Highway 99 Expense of $522,464.30 to be repaid as follows:
May 15, 2025 - Paid 100,000.00
May 15, 2026 100,000.00
May 15, 2027 $ 322,464.30
Yield Comparison CA CLASS Variance
December-24 4.64% 4.43% 0.20%
January-25 4.42% 4.37% 0.06%
February-25 4.33% 0.08%
March-25 4.31% 0.08%
April-25 4.28%| 0.11%
May-25 4.27% 0.08%
June-25 4.27% 0.07%
July-25 4.26% 0.08%
August-25 4.25% 0.07%
September-25 4.21% 0.06%
October-25 4.15% 0.04%
November-25 4.04% 4.10% -0.06%
December-25 3.88% 4.03% -0.15%
Average Monthly Rate 4.31% 4.25% 0.06%
The Deposits and investments described above comply with the adopted City of Williams Investment Policy.
Prepared and Submitted by: Rex J. Greenbaum, Finance Director U: Officer Council Communications/FY2026\Treasuer's Report FY2026VDecember 2025 Investment Detail for 2.18.26 Meeting.x/s]Projections Jan2026 CITY OF WILLIAMS Updated Projections
Sales Taxes and Transient Occupancy Taxes
Current Year Fiscal Year 2026
Priections Updated for receipts received through Janu rogezed Received Projected
FY2026 through FY2026 Surplus %
Budgeted January 2026 Revenues (Shortfall) Difference
Bradley Burns
Sales Taxes 1,598,567 611,834 1,662,179 63,612 4%
Add On Tax
Sales Taxes 949,662 331,400 888,510 (61,152) -6%
Total Sales
Taxes 2,548,229 943,234 2,550,689 2,460 0.1%
Transient
Occupanci
Taxes 465,945 243,022 469,461 3,516 0.8%
Totals 5,976
CITY OF WILLIAMS Check Register - Treasurer Rpt Page: 1 FINANCE DEPARTMENT 12/25 (12/31/2025) to 12125 (12/31/2025) Feb 03, 2026 11:55AM Report Criteria:
Print Sequence Detail
Journal Code. Journal code = "CDA"
Transaction. Amount >0
Check Check
Journal Payee or Description Date Number Amount
CDA ADVANCED DOCUMENT 12/04/2025 51562 232.26
CDA AMAZON CAPITAL SERVICES 12/04/2025 51564 656.09
CDA BEST BEST & KRIEGER LLP 12/04/2025 51565 11,816.70
CDA BIDWELL H20 12/04/2025 51566 50.45
CDA CA DEPT OF JUSTICE 12/04/2025 51567 52.00
CDA CIVICPLUS LLC 12/04/2025 51568 945.00 City Clerk Ordinances Updates CDA CLOSE LUMBER 12/04/2025 51569 58.89
CDA COLUSA COUNTY ENVIRONMENTAL HEALTH 12/04/2025 51570 415.00 City permits CDA DEPT OF CONSERVATION 12/04/2025 51571 139.53
CDA HOBLIT MOTORS 12/04/2025 51573 585.20
CDA MEDICAL AIR SERVICES ASSOCIATION 12/04/2025 51577 160.00 CDA MID VALLEY AUTO CARE 12/04/2025 51578 68.12
CDA PACE SUPPLY CORP. 12/04/2025 51580 107.60
CDA PACIFIC GAS & ELECTRIC CO 12/04/2025 51581 20,495.65 CDA RAMOS OIL COMPANY, INC. 12/04/2025 51583 1,382.81
CDA SORENSON PEST CONTROL, INC. 12/04/2025 51586 505.00 CDA TEXAS LIFE INSURANCE COMPANY 12/04/2025 51589 363.50 CDA THE DOOR COMPANY 12/04/2025 51590 615.00 Planning Door CDA TRANSUNION RISK AND ALTERNATIVE 12/04/2025 51591 100.00 CDA US BANK NATIONAL ASSOCIATION 12/04/2025 51592 3,073.06 CDA VERDANT COMMERCIAL CAPITAL 12/04/2025 51593 225.16
CDA VERIZON WIRELESS 12/04/2025 51594 502.56
CDA VESTIS GROUP INC 12/04/2025 51595 290.46
CDA VISION SERVICE PLAN (CA) 12/04/2025 51596 632.15
CDA COLUSA COUNTY SHERIFF'S OFFICE 12/10/2025 51598 62.00 CDA AMAZON CAPITAL SERVICES 12/18/2025 51605 390.10
CDA AMERICAN FIDELITY ASSURANCE 12/18/2025 51606 5,608.77 CDA AMERICAN FIDELITY FLEX ACCOUNT 12/18/2025 51607 2,483.28 CDA AMERITAS LIFE INSURANCE CORP 12/18/2025 51608 3,363.40 CDA BENNETT ENGINEERING SERVICES 12/18/2025 51609 6,926.50 Streets Eng. Services CDA BIDWELL H20 12/18/2025 51610 37.45
CDA CA DEPT OF JUSTICE 12/18/2025 51611 52.00
CDA CITY OF WILLIAMS 12/18/2025 51613 360.17
CDA CLOSE LUMBER 12/18/2025 51614 42.88
CDA COLUSA COUNTY AUDITOR'S OFFICE 12/18/2025 51615 12.50 Citations CDA COLUSA COUNTY FARM SUPPLY, INC 12/18/2025 51616 25.00 CDA COMCAST BUSINESS 12/18/2025 51617 427.90
CDA CONCERN: EAP 12/18/2025 51618 7,247.00 Employee Assistance Pogram Yearfee CDA CRITICAL REACH INC 12/18/2025 51619 300.00
CDA LEAGUE OF CALIFORNIA CITIES 12/18/2025 51622 300.00 CDA MEDICAL AIR SERVICES ASSOCIATION 12/18/2025 51623 320.00 CDA MESSENGER PUBLISHING GROUP 12/18/2025 51624 350.00
CDA MID VALLEY AUTO CARE 12/18/2025 51625 185.25
CDA MUNISERVICES 12/18/2025 51626 754.89
CDA PACE ENGINEERING, ING 12/18/2025 51627 1,511.50 As Needed Services CDA PACIFIC GAS & ELECTRIC CO 12/18/2025 51629 94.50
CDA PRECISION BUSINESS ASSOC. INC 12/18/2025 51630 3,582.68 CDA RACE COMMUNICATIONS 12/18/2025 51631 1,844.10
CDA RAMOS OIL COMPANY, INC. 12/18/2025 51632 566.21
CDA TEXAS LIFE INSURANCE COMPANY 12/18/2025 51636 363.50 CDA T-MOBILE USA, INC. 12/18/2025 51637 200.00
CDA UNUM LIFE INS. COMPANY OF AMER 12/18/2025 51638 407.97 CDA VERIZON WIRELESS 12/18/2025 51639 837.27
CITY OF WILLIAMS Check Register - Treasurer Rpt Page: 2 FINANCE DEPARTMENT 12/25 (12/31/2025) to 12/25 (12/31/2025) Feb 03, 2026 11:55AM Check Check
Journal Payee or Description Date Number Amount
CDA VESTIS GROUP INC 12/18/2025 51640 226.82
CDA COLUSA COUNTY SHERIFF'S OFFICE 12/19/2025 51641 62.00 CDA PRECISION BUSINESS ASSOC. INC 12/19/2025 51643 2,897.50 CDA RAMOS OIL COMPANY, INC. 12/19/2025 51649 2,179.09
CDA BENNETT ENGINEERING SERVICES 12/29/2025 51650 789.00 CDA LDA PARTNERS DESIGNERS & ARCHITECTS 12/04/2025 51575 7.440.00 470 7 Street Phase 1-2 CDA TERRACON CONSULTANTS INC 12/04/2025 51588 9,820.00 470 7 Streel AH Evaluation CDA ADVANCED DOCUMENT 12/04/2025 51562 32.90
CDA ALPHA ANALYTICAL LABORATORIES 12/04/2025 51563 290.00 CDA COLUSA COUNTY ENVIRONMENTAL HEALTH 12/04/2025 51570 741.00 CDA PACE SUPPLY CORP. 12/04/2025 51580 161.72
CDA PACIFIC GAS & ELECTRIC CO 12/04/2025 51581 14,764.55 CDA SCP DISTRIBUTORS LLC 12/04/2025 51585 2,156.22 Water Depl Chemicals CDA SORENSON PEST CONTROL, INC. 12/04/2025 51586 90.00
CDA US BANK NATIONAL ASSOCIATION 12/04/2025 51592 3,416.59 CDA VERDANT COMMERCIAL CAPITAL 12/04/2025 51593 56.29
CDA VESTIS GROUP INC 12/04/2025 51595 98.01
CDA ALPHA ANALYTICAL LABORATORIES 12/18/2025 51604 525.00 CDA AMAZON CAPITAL SERVICES 12/18/2025 51605 70.82
CDA CASELLE, INC. 12/18/2025 51612 1,282.00
CDA CLOSE LUMBER 12/18/2025 51614 118.69
CDA COLUSA COUNTY FARM SUPPLY, INC 12/18/2025 51616 9.31 CDA PACE ENGINEERING, INC 12/18/2025 51627 31,691.09
CDA PACE SUPPLY CORP. 12/18/2025 51628 146.43
CDA PACIFIC GAS & ELECTRIC CO 12/18/2025 51629 3,934.08 CDA PRECISION BUSINESS ASSOC., INC 12/18/2025 51630 714.91 CDA RACE COMMUNICATIONS 12/18/2025 51631 307.35
CDA VERIZON WIRELESS 12/18/2025 51639 340.24
CDA VESTIS GROUP INC 12/18/2025 51640 32.67
CDA SWRCB ACCOUNTING OFFICE 12/19/2025 51645 15,040.44 State Yearly Fees CDA SWRCB ACCOUNTING OFFICE 12/19/2025 51646 881.00 State Yearly Fees CDA SWRCB ACCOUNTING OFFICE 12/19/2025 51648 3,945.00 State Yearly Fees CDA RAMOS OIL COMPANY, INC. 12/19/2025 51649 353.02
CDA ADVANCED DOCUMENT 12/04/2025 51562 32.90
CDA ALPHA ANALYTICAL LABORATORIES 12/04/2025 51563 737.00 CDA AMAZON CAPITAL SERVICES 12/04/2025 51564 425.81
CDA CLOSE LUMBER 12/04/2025 51569 70.48
CDA COLUSA COUNTY ENVIRONMENTAL HEALTH 12/04/2025 51570 497.00 CDA PACIFIC GAS & ELECTRIC CO 12/04/2025 51581 126,891.34 CDA RAMOS OIL COMPANY, INC. 12/04/2025 51583 1,076.53
CDA ROBINSON ENTERPRISES, INC. 12/04/2025 51584 2,861.26 CDA SORENSON PEST CONTROL, INC. 12/04/2025 51586 70.00
CDA SPG SOLAR FACILITY XLLC 12/04/2025 51587 25,435.04 Solar from Aug/SeptiOctober CDA US BANK NATIONAL ASSOCIATION 12/04/2025 51592 3,917.72 CDA VERDANT COMMERCIAL CAPITAL 12/04/2025 51593 56.29
CDA VESTIS GROUP INC 12/04/2025 51595 100.41
CDA ALPHA ANALYTICAL LABORATORIES 12/18/2025 51604 612.00 CDA AMAZON CAPITAL SERVICES 12/18/2025 51605 70.82
CDA COLUSA COUNTY FARM SUPPLY, INC 12/18/2025 51616 478.55 CDA DERODA INC 12/18/2025 51620 34.87
CDA KINNEY ELECTRIC, INC 12/18/2025 51621 5,202.52 Repairs WWTP CDA PACE ENGINEERING, INC 12/18/2025 51627 48,110.50 Waste Water Collection System impr.
CDA PRECISION BUSINESS ASSOC., INC 12/18/2025 51630 714.91 CDA RACE COMMUNICATIONS 12/18/2025 51631 307.35
CDA SOLENIS, LLC 12/18/2025 51633 5,237.30 WWTP LabsiTesting CDA STATE WATER RESOURCES CONTROL BOARD 12/18/2025 51634 363,964.77 WWTP Contract 09860-550-0 CDA VERIZON WIRELESS 12/18/2025 51639 745.95
CDA VESTIS GROUP INC 12/18/2025 51640 33.47
CITY OF WILLIAMS Check Register - Treasurer Rpt Page: 3 FINANCE DEPARTMENT 12/25 (12/31/2025) to 12/25 (12/31/2025) Feb 03. 2026 11:55AM Check
Journal Payee or Description Date Amount
CDA STATE WATER RESOURCES CONTROL BOARD, AO 12/18/2025
CDA SWRCB-DWOCP 12/19/2025
CDA SWRCB ACCOUNTING OFFICE 12/29/2025
CDA RAMOS OIL COMPANY, INC. 12/19/2025
CDA PACIFIC GAS & ELECTRIC CO 12/04/2025
CDA SORENSON PEST CONTROL, INC. 12/04/2025
CDA AMAZON CAPITAL SERVICES 12/18/2025
CDA CITY OF WILLIAMS 12/18/2025
CDA CLOSE LUMBER 12/04/2025
CDA DERODA INC 12/04/2025
CDA IMPACT LED SIGNS 12/04/2025
CDA M&K HARVESTING EQUIPMENT 12/04/2025
CDA MID VALLEY AUTO CARE 12/04/2025
CDA O'REILLY AUTO PARTS 12/04/2025
CDA PACIFIC GAS & ELECTRIC CO 12/04/2025
CDA PLATT 12/04/2025
CDA RAMOS OIL COMPANY, INC. 12/04/2025
CDA CASF INVESTORS A CA CORP 12/08/2025 E Street Project CDA COREY A REGNANI 12/08/2025 E Sireet Project
CDA JOHN J TROUGHTON JR 12/08/2025 E Streel Project
CDA RAFAEL & OLIVIA MADRIGAL 12/08/2025 E Sineat Project CDA RICHARD BOWEN 12/08/2025 E Streal Project
CDA BENNETT ENGINEERING SERVICES 12/18/2025
CDA CLOSE LUMBER 12/18/2025 6.48
CDA COLUSA COUNTY FARM SUPPLY, INC 12/18/2025 86.59
CDA DERODA INC 12/18/2025 11.30
CDA MID VALLEY AUTO CARE 12/19/2025 61.75
CDA RAMOS OIL COMPANY. INC. 12/19/2025
CDA BENNETT ENGINEERING SERVICES 12/29/2025
Grand Totals: 884,590.49
CITY OF WILLIAMS DATE: February 18, 2026
City Council ITEM: 4.
Agenda Report CATEGORY: Old Business
SUBJECT: REPRESENTATIVES TO COUNTY COMMISSIONS, CITY COUNCIL
COMMITTEES AND CITY COUNCIL LIAISONS
BACKGROUND:
The City Cun annually reviews its representatives on the various County Commissions, Committees and Liaisons to community organizations. In its discretion, the City Council and/or the Mayor, as appropriate, may recommend and/or appoint different representatives and may dissolve and create new committees and liaisons.
DISCUSSION:
The attached list is separated into three categories: (a) County Commissions and Joint Powers Agencies, (2) City Council Committees and (3) City Council Liaisons. Members to the Colusa County Transportation and Transit Agency and LAFCO are made by the City Selection Committee (the mayors of the two incorporated cities in Colusa County). Members to the two Joint Powers Agencies (One-Stop and the Fire Protection Authority) are made by the City Council as a whole. Members to the City Council Committees are appointed by the Mayor (Resolution No. 06-29). The process to appoint liaisons to community organizations is undefined and the Council may make such appointments or delegate authority to the Mayor to make such appointments.
FISCAL IMPACT:
None.
ALTERNATIVES:
The City Council may make changes to the existing appointments or leave them unchanged. The appointees for their own Committees and Commissions have no fixed terms and serve at the pleasure of the City Council or the Mayor.
RECOMMENDATION: Review the list of appointments and make changes as desired.
Prepared by: Mariana Pineda, City Clerk
Submitted by: Chris Miller, Acting City Manager
Attachments (2): Commissions and Committees Worksheets
COUNCIL ASSIGNMENTS TO BOARDS, COMMISSIONS, COMMITTEES AND LIAISONS - 2026 Assignment Parsons Sellers Troughton Belmonte Dunlap Staff Date and Time Location Leyva
COUNTY COMMISSIONS AND JOINT POWERS AGENCIES
Colusa County Transit Agency and 4th Tues. @ 3:00 Board of Supervisor Primary City Manager
Transportation Commission p.m. Chambers
Local Agency Formation 1st Thurs. @ 3:00 Board of Supervisor Primary
Commission of Colusa County p.m. Chambers
Colusa County One-Stop Primary Meetings held
Partnership quarterly
Williams Fire Protection Authority 3rd Mon. @ 5:00 Williams Council Primary Alternate Primary
p.m. Chambers
Colusa Groundwater Authority Quarterly on the Colusa Industrial Primary Alternate Properties, 100
4th Wednesday of
the month. Sunrise Blvd.,
Colusa, CA 95932
CITY COUNCIL COMMITTEES
Finance Committee As needed Williams City Hall
Primary Primary
Personnel Committee As needed
Primary Primary
General Plan Update Committee Primary As needed
Primary
Capital Improvement Committee As needed
Primary Primary
CITY COUNCIL LIAISON ASSIGNMENTS
Yellowjackets at City Hall 3rd [email protected] City Dept.
Primary Alternate
Williams Unified School District 3rd Thurs. @ High School Library Alternate Primary
7:00 p.m.
Williams Community Center 3rd Wed. @ 6:30 VFW Hall
Primary Alternate
p.m.
Sacramento Valley Museum 1st Thurs. @4:00 Sacramento Valley Alternate Primary
p.m. Museum
Colusa Co. Regional Medical Center 3rd Wed. @ 7:00 Colusa Co. Regional Primary
a.m. Medical Center
COUNCIL ASSIGNMENTS TO BOARDS, COMMISSIONS, COMMITTEES AND LIAISONS - 2026 Assignment Parsons Sellers Troughton Belmonte Dunlap Date and Time Location Leyva
Colusa Co. Board of Supervisors Every other Board Chambers Primary Alternate
Tues. @ 8:00
a.m.
Airport Land Use Bi-Monthly @ Colusa Industrial
Staff 2:30 p.m. Properties
Solid Waste Task Force As needed Colusa Co. Dept. of
Staff Public Works
Air Pollution Control Board As needed (same County Hall of Staff day as BOS) 8:00 Records, Board
a.m. Chambers
Program Reuse - Community As needed
Development Block Grant Staff
CITY OF WILLIAMS BOARD ANS COMMITTEES
Planning Commission 4th Mon. @ 6:00 Council Chambers
Staff p.m.
Parks and Recreation Commission First Thurs. @ Council Chambers Staff 8:00 p.m.
PARTNER AGENCIES
League of California Cities City
Manager
State Legislation Representatives Staff
Central Valley Clean Water Staff
Association
Regional Water Resources Board Bi-Weekly, every Coastal Hearing other Wed. @, Room, Cal/EPA
10:00 a.m. Building, 1001 I St.,
Sacramento
Revised 02/13/2026
CITY OF WILLIAMS DATE: February 18, 2026
City Council ITEM #: 5.
Agenda Report CATEGORY: New Business
SUBJECT FY2023 - 2024 Audit Report, Annual Reports on Transaction and Use Tax and Transient Occupancy Taxes
BACKGROUND:
The City of Williams had new auditors for the Fiscal Year Ended June 30, 2024 as we were required to rotate to a new auditor. MUN CAs, has completed the FY 2023-2024 audit of the City of Williams.
The audit and the audited financial statements were completed effective October 28, 2025.
Included with this report is the presentation of the annual reports on Transaction and Uses taxes and the Transient Occupancy Taxes as required by the City of Williams Municipal Code section 3.18.120.
DISCUSSION:
Audit Opinion
Staff is pleased to report that the City of Williams received a "clean" unqualified audit report as detailed on pages 1-3 in the audit report for the year ended June 30, 2024. This is the sixteenth consecutive unqualified report the City of Williams has received since FY2009.
Financial Statements
The major financial highlights contained in the auditor's report are detailed on pages 4 - 12 in Management's Discussion and Analysis.
General Fund
For the year ending June 30, 2024, the City's unrestricted General Fund equity totaled $8,816,153. When netted off against the Street Fund deficit position of $1,651,454, the remaining equity totaled $7,164,699.
This equity represents a healthy 117.1% of budgeted general fund expenditures including transfers during the year. The net General Fund reserves increased slightly by 2.1% or $145,366 from the $7,019,333 from the previous year. The City's General Fund equity is detailed on page 15 of the report.
Findings and Recommendations / Report on Internal Controls Over Financial Reporting For the fiscal year ended June 30, 2024, MUN CPAs reported three findings related to internal control and accounting procedures. This was the firm's first year serving as the City's independent auditors, and additional review procedures were performed as part of the transition. All three findings were reported as significant deficiencies. The auditors did not report any material weaknesses. None of the findings resulted in a material misstatement of the City's total revenues, total expenditures, fund balance or overall net position.
These findings, which are detailed on pages 76 - 78, are summarized below:
Finding 2024-001 - Loans Receivable:
The auditors identified a presentation issue related to the accounting treatment of long-term loans receivable. The City appropriately recorded interest revenue only on active loans that were making payments. However, under the modified accrual basis of accounting, interest associated with nonperforming or inactive loans must be recorded as a deferred inflow of resources. The required audit adjustment reclassified amounts between loan receivables and deferred inflows of resources to properly reflect unavailable interest in accordance with governmental accounting standards. The adjustment had no effect on total fund balance or overall net position.
Management concurs with the revised accounting treatment. The prior presentation reflected previous auditor direction. Moving forward, the City will ensure to account for deferred inflows when accounting for loans receivable.
Finding 2024-002 - Grant and Tax Receivable Accruals
The auditors identified a Water Enterprise grant receivable totaling $917,446 and a tax receivable totaling $47,810 that were not included as of year-end. Management concurs with the finding noting that the grant receivable of $917,446 was received more than 100 days after year end. These receivables should have been recorded as of year end and the City has implemented an additional year end review procedure to verity that all receivables and related revenues are accurately captured going forward.
Finding 2024-003 - Net Pension Liability Calculation
The auditors noted a classification issue related to the City's CaPERS unfunded accrued liability (UAL) payment. Regular monthly CaPERS contributions and correct employer allocation expenses were properly recorded. However, a portion of the UAL payment was classified within personnel expenses rather than pension expense. Management concurs with the finding and has implemented an additional annual reconciliation of CaPERS distributions to ensure all pension-related expenses are appropriately classified in future reporting periods.
TRANSACTION AND USE TAXES
Sales taxes are detailed on page 14 of the financial statements. When looking at Sales taxes, it is helpful to look at the changes over multiple years as detailed below:
%
$ Change Change $ Change % Change
FY2024 FY2023 FY2022 One Year One Two Years Two Years
from Year from from
FY2023 From FY2022 FY2022
FY2023
Sales $2,099,842
Taxes $1,829,516 $2,428,890 ($599,374) (24.7%) ($270,326) (12.9%) Sales taxes for the year ending June 30, 2024, decreased by $599,374 or 24.7% from FY2023. Looking at sales taxes over a two-year period we can see that sales taxes decreased by $270,326 or 12.9% fron :Y2022. Overall, the large decrease in sales taxes is attributed to a decline in spending from the previou two years which had been temporarily increased by spending which can be attributed to the pandemic stimulus. Sales taxes in Williams are very volatile and will fluctuate from year to year because a large portion of our sales taxes are derived from gasoline sales. Increases and decreases will fluctuate based on demand and fluctuating gas prices and changing consumer spending patterns.
TRANSIENT OCCUPANCY TAXES
Transient occupancy taxes for the year ending June 30, 2024, totaled $501,694, a decrease of $26,590 or 5% from the $528,284 received in FY2023. Looking back over a two-year period, we see that transient occupancy taxes have decreased by $119,722 or 19.3% from the $621,416 received in FY2022. The large FY2022 transient occupancy revenues can be attributed to a surge in travel due to pent up demand caused by the pandemic. As pandemic related restrictions eased, in FY2022 people tended to travel more as a release to being cooped up at home. In FY2023, this leveling off is due to normalizing travel patterns more consistent with pre-pandemic trends. In FY2024, an additional 5% decrease correlated with the lack of any remaining stimulus funds available for travel. The transient occupancy taxes are detailed on page 12 of the financial statements.
RECOMMENDED ACTION
Staff recommends that City Council reviews and accepts the FY 2023-2024 audited financial statements performed in accordance with Government Auditing Standards. Staff also recommends that City Council accepts the annual reports for transaction and Use Taxes and Transient Occupancy Taxes as required per Municipal Code section 3.18.120.
Prepared by: Rex Greenbaum, Finance Director
Attachments):
• Audited Financial Statements for fiscal year ended June 30, 2024
CITY OF WILLIAMS
FINANCIAL STATEMENTS
AND
INDEPENDENT AUDITOR'S REPORT
FOR THE YEAR ENDED
JUNE 30, 2024
MUN CPAs, LLP
1760 Creekside Oaks Drive, Suite 160
Sacramento, California 95833
CITY OF WILLIAMS
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024
TABLE OF CONTENTS
Page
INTRODUCTORY SECTION:
Directory of Officials
FINANCIAL SECTION:
Independent Auditor's Report 1-3
Management's Discussion and Analysis 4-12
Basic Financial Statements:
Government-wide Financial Statements
Statement of Net Position 13
Statement of Activities 14
Fund Financial Statements
Governmental Funds
Balance Sheet 15
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 16
Statement of Revenues, Expenditures, and Changes in Fund Balances 17 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities 18
Proprietary Funds
Statement of Net Position 19
Statement of Revenues, Expenses, and Changes in Net Position 20 Statement of Cash Flows 21 - 22
Fiduciary Funds
Statement of Fiduciary Net Position 23
Statement of Changes in Fiduciary Net Position 24
Notes to Basic Financial Statements 25 - 49
Required Supplementary Information:
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund 50
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - CDBG Fund 51
CITY OF WILLIAMS
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024
TABLE OF CONTENTS
Page
FINANCIAL SECTION (Continued):
Required Supplementary Information (Continued):
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Development Fund 52
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Streets Fund 53
City Pension Plan - Schedule of the City's Proportionate Share of the Net Pension Liability 54 - 55 City Pension Plan - Schedule of Contributions 56-57
Notes to Budgetary Comparison Schedules 58
Combining and Individual Fund Financial Statements and Schedules:
Non-Major Governmental Funds:
Narrative Summary 59
Combining Balance Sheets 60 - 61
Combining Statements of Revenues, Expenditures, and Changes in Fund Balances 62 - 63 Budgetary Comparison Schedules:
Traffic Safety 64
Lighting and Landscaping 65
Recycling Grant 66
Law Enforcement Grant 67
Police Grant 68
Capital Projects 69
Internal Service Funds
Narrative Summary 70
Combining Statement of Net Position 71
Combining Statement of Revenues, Expenses, and Changes in Net Position 72 Combining Statement of Cash Flows 73
OTHER REPORT
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 74 - 75
Schedule of Current Year Findings 76 - 78
Schedule of Prior Year Findings 79
INTRODUCTORY SECTION
CITY OF WILLIAMS
ELECTED AND APPOINTED OFFICIALS
JUNE 30, 2024
ELECTED OFFICIALS
Don Parsons Mayor
Maria Belmontes-Leyva Mayor Pro Tempore
Kate Dunlap Council Member
Alfred Sellers, Jr. Council Member
John J. Troughton, Jr. Council Member
Mariana Pineda City Clerk
EXECUTIVE STAFF
Frank Kennedy City Administrator
Chris Miller Police Chief
Rex Greenbaum Finance Director
This listing is a reference of the structure at the time of production.
FINANCIAL SECTION
SMUN
INDEPENDENT AUDITOR'S REPORT
To the City Council of
the City of Williams
Williams, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Williams (the City) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be ndependent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethica 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.
Change in Accounting Principle
As described in Notes 1 and 13 to the financial statements, in 2024, the City adopted new accounting guidance, GASB Statement No. 100, Accounting Changes and Error Corrections. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, anc maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
MUN CPAs, LLP | 1760 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 | www.muncpas.com GLENDALE • ROSEVILLE • SACRAMENTO • ZEPHYR COVE • KAUAI 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. easonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarante and conned can wt generally accepted auditing standards and Government Auditir Standards will always detect a material misstatement when it exists. The risk of not detecting a material 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
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 preparina the information and comparina the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying combining and individual nonmajor fund financial statements and budgetary comparison schedules 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 and individual nonmajor governmental fund financial statements and budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory section but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 28, 2025, on our of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting Standards in considering the City interal apart over fancia reporting and cordance with Government Auditing WUN CPAs, LLP
Sacramento, California
October 28, 2025
This page is intentionally left blank.
CITY OF WILLIAMS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
As management of the City of Williams (the City), we offer readers this discussion and analysis of the City's financial erformance for the fiscal year ended June 30, 2024. We encourage readers to consider the information presenter here in conjunction with additional information that can be found in the City's basic financial statements, which follow this section.
FINANCIAL HIGHLIGHTS
Government-wide:
• The City's total net position increased by $3,983,535, including prior period adjustments. Of this amount 51,557,928 is attributable to governmental activities and $2,425,607 is attributable to business-type activities • Governmental revenues include program revenues of $598,864, general revenues of $7,102,107, and transfers in of $239,721 for a total of $7,940,692. Governmental expenses were $7,407,595. • Business-type revenues include program revenues of $6,747,189, general revenues of $86, 141, and transfers out of $239,721 for a total of $6,593,609. Business-type expenses were $3,945,244.
Fund Level:
• The City's governmental funds reported combined fund balances of $11,598,713, which is a decrease of $942,297 from the prior year. Approximately $7,151,829 of the combined fund balances, or 62%, is available to meet the City's current and future needs (unassigned fund balance). • Governmental fund revenues were $7,384,277, a decrease of $518,286 from the prior year balance of $7,902,563. This decrease is primarily attributable to a decline in grant revenues received totaling $1,010,078 offset by increases in interest income totaling $371,997. A majority of the prior year grants were attributed to Coronavirus relief funding which ended in Fiscal Year 2023. The rise in interest income correlated with the rise it interest rates in FY 2024. The revenues generated from sales taxes will fluctuate from year to year depending on the price of gasoline.
• Governmental fund expenditures were $7,054,594, a decrease of $322,957 from the prior year balance of $7,377,551. Notable decreases included $1,090,505 for capital outlay primarily attributed to decreased street expenditures. This decrease was offset by rising expenditures primarily out of public safety and community development.
General Fund:
• The fund balance in the City's General fund totaled $8,816,153, which is an increase of $709,852 from the prior year balance of $8, 106,301.
• General fund revenues were $6,240,097, a decrease of $504,072 from the prior year balance of $6,744, 169. This was primarily attributed to decreases in grant revenues offset by increases in interest income received. There was little growth in sales and local taxes. The revenues generated from sales taxes will fluctuate from year to year depending on the price of gasoline.
• General fund expenditures were $5,082,477, a decrease of $188,441 from the prior year balance of $5,270,918.
This decrease was primarily attributed to reduced outlays for grant related expenditures which were completed in the prior fiscal year.
OVERVIEW OF THE FINANCIAL REPORT
The City's basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other required supplementary information (RSI) in addition to the basic financial statements themselves. 4 CITY OF WILLIAMS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
Government-Wide Financial Statements
The government-wide financial statements consist of a Statement of Net Position and a Statement of Activities.
These statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private-sector business. They provide information about the activities of the City as a whole and present a long- term view of the City's finances.
The Statement of Net Position presents information on all of the City's assets, deferred outflows of resources, liabilities, and deferred inflows of resources, with the difference between the two reported as net position. Over time increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is strengthening or weakening.
The Statement of Activities presents information showing how the City's net position changed during the fiscal year.
All changes in net position are reported when the underlying event giving rise to the change occurs, regardless of the timing of related cash receipts or disbursements. Thus, revenues and expenses are reported in this statement for some items that will only result in cash receipts or disbursements in future fiscal periods, such as property taxes assessed for the current year but received after June 30, or vacation leave earned in the current year but not utilized until a subsequent year.
The government-wide financial statements of the City are divided as follows:
Governmental activities
These are activities that principally supported by taxes and intergovernmental revenues. For the City, governmental activities include general government, public safety, public works, community development, and parks and recreation.
Business-type activities
These are activities that are primarily funded through user fees and charges. The City's business-type activities include water and sewer.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The funds used by the City are divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, which focus on the long-term, governmental fund financial statements focus on short-term inflows and outflows of spendable resources and the balances of those spendable resources available for spending. This information is useful in evaluating a government's short-term financing requirements To assist the user of these financial statements in understanding the differences and the relationship between the government-wide financial statements and the governmental funds financial statements, reconciliations between the two sets of statements have been included in this report.
The reconciliation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net Position highlights the inclusion of capital assets and long-term liabilities in the government-wide financial statements.
The reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-wide Statement of Activities highlights the exclusion of capital expenditures, depreciation, and cash flows related to long-term liabilities from the governmental fund statements. 5 CITY OF WILLIAMS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
Proprietary funds
Proprietary funds are generally used to account for services for which the City charges customers - either outside Fiduciary funds
Fiduciary funds are used to account for resources held for the benefit of parties outside of the reporting government Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City's own programs. The City utilizes one type of fiduciary fund:
Custodial funds are used to record assets of separate organizations for which the City serves as a custodian.
Notes to the Financial Statements
The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
Required Supplementary Information
Combining and Individual Fund Statements and Schedules
This section of the report includes combining information for the City's non-major funds and internal service funds. 6 CITY OF WILLIAMS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
GOVERNMENT-WIDE FINANCIAL ANALYSIS
This section provides an analysis of the financial statements of the city as a whole.
Statements of Net Position
As of June 30, 2024 and 2023
(in thousands)
Governmental Activitie Business- Type Activist
Change Change Change
ASSETS
Current and other
assets $ 19,429 $ 14,362 $ 5,067 $ 2,519 $ 2,408 $ 286 $ 20348 $ 15,560 $ 5,104 Capital assets 13.152 12,634 24,933 2.286 37.567
Total Assets 26,996 5.585
DEFERRED
OUTFLOWS OF
RESOURCES 1,348 4,448 (3,100) 621 805 (184) 1,969 5,253 (3,284)
LIABILITIES
Current and other
liabilities
Long-term liabilities (197)
Total Liabilities
DEFERRED INFLOWS
OF RESOURCES 136 135 63 62 199 197
NET POSITION
Net investment in
capital assets
Restricted 182) 11200 13878
Unrestricted = 2109
Total Net Position $ 17,490 $49,535 45,552
The City's net position amounted to $49.5 million as of June 30, 2024, an increase of approximately $4 million compared to the fiscal year ended June 30, 2023. The largest portion of the City's total net position is the net investment in capital assets. This component of net position, which reflects the total amount of funds used to acquire those assets less accumulated depreciation and any outstanding debt used for such acquisition, was $32 million as of June 30, 2024.
Restricted net position of $4 million represents resources subject to external restrictions as to how they may be used.
The Governmental Activities unrestricted net position is $12 million. The Business-type Activities unrestricted net position of $1 million reflects the resources available for capital replacement. 7 CITY OF WILLIAMS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
Changes in Net Position
For the Years Ended June 30, 2024 and 2023
(in thousands)
Governmental Activities Business-Type Activities Total Government 2024 2023 Change 2024 2023 Change 2024 2023 Change
REVENUES
Program revenues
Charges for services $ 358 $ 238 $ 120 $ 3,543 $ 3,413 $ 130 $ 3,901 $ 3,651 $ 250 Operating grants and
contributions 241 1,010 (769) 202 1,557 (1,355) 443 2,567 (2,124) Capital grants and
contributions - - 3,003 3,003 3,003 - 3,003
General revenues
Taxes 5,779 5,976 (197) - 5,779 5,976 (197)
Other revenues 1,323 709 614 86 36 50 1,409 745 664
Transfers 240 205 35 (240) (205) (35)
Total Revenues 7,941 8,138 _ (197) 6,594 4,801 1,793 14,535 12.939 1,596
EXPENSES
Governmental activities
General government 1,253 1,819 (566) 1,253 1,819 (566)
Public safety 3,297 2,934 363 3,297 2,934 363
Public works 1,519 2,089 (570) 1,519 2,089 (570)
Community development 701 41 660 701 41 660
Parks and recreation 369 269 638 369 269
Water 1,461 1,112 349 1,461 1,112 349
Sewer 2,484 2,625 (141) 2,484 2,625 (141)
Total Expenses 7,408 156 3,945 3.737 208 11,353 10,989 364 Change in net position 533 886 (353) 2,649 1,064 1,585 3.182 1,950 _ 1,232 Net position - beginning of year 28,062 886 17,490 16,426 1,064 45,552 43,602 1,950 Restatement 1,025 1,025 (223) _ (223) 802 802
Net position - beginning of
year, restated 29,087 1.911 17,267 16.426 841 46,354 43,602 2,752 Net position - end of year $ 29,620 $ 1,558 $ 19.916 $ 17.490 $ 2,426 $ 49,536 $ 45,552 $ 3,984 Governmental Activities
Governmental activities net position increased to $29,619,693 during fiscal year 2023-24. • Taxes provided $5,778,870 or 74% of total governmental activities revenues. • Charges for services and operating grants provided $598,864 or 8% of total governmental activities revenues. • Other revenues provided $1,323,237 or 17% of total governmental activities revenues.
Business-Type Activities
Business-type activities net position increased by $2,425,607 to $19,915,476 during fiscal year 2023-24. $2,563,209 of the increase is attributable to the Water fund which is netted off by $137,602 of a decrease in the Sewer fund.
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
The City uses fund accounting to ensure compliance with finance-related legal requirements. The fund financial statements presented in this report address the need of the City to demonstrate compliance with financial restrictions and allow the statement's users to separately analyze individual funds. 8 CITY OF WILLIAMS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of resources that are available for spending. Such information is useful in assessing the City's financing requirements.
In particular, unassigned fund balances may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
Revenues Classified by Source
Governmental Funds
For the Years Ended June 30, 2024 and 2023
(in thousands)
2024 2023
Amount % of Total Amount % of Total Variance % Change
Property taxes $ 1,604,586 21.7% $ 1,515,685 19.1% $ 88,901 5.9% Sales taxes 1,829,516 24.8 % 2,428,890 30.7 % (599,374) (24.7)% Local taxes 1,350,945 18.3% 920,468 11.6% 430,477 46.8 % Motor vehicle in-lieu 618,711 8.4 % 582,288 7.4 % 36,423 6.3 % Transient occupancy 501,694 6.8 % 528,284 6.7 % (26,590) (5.0)% Franchise fees 305,779 4.1 % 325,206 4.1 % (19,427) (6.0)% Business license fees 63,857 0.9 % 75,305 1.0 % (11,448) (15.2)% Charges for services 305,588 4.1% 238,378 3.0 % 67,210 28.2% Intergovernmental 241,069 3.3 % 1,010,078 12.8 % (769,009) (76.1)% Interest 527,404 7.1% 155,407 2.0 % 371,997 239.4 %
Other revenues 35,128 0.5 % 122,574 1.6 % (87,446) (71.3)% 7,384,277 100.0 % $ 7,902,563 100.0 % (518,286) (6.6)%
The $518,286 decrease in governmental fund revenues can be primarily attributed to the following:
• Sales taxes decreased by $599,374, primarily due to a decrease of $597,860 in sales taxes received for Streets.
In the previous fiscal year, street funding totaling $485,397 for Local Transportation (LTF) and Regional Surface Transportation Program (RSTP) was included with Sales Taxes and now has been shifted to local taxes in the current fiscal year.
• Local taxes increased by $430,477 which was primarily attributed to FY 2023 LF and RSTP revenues totaling $485,397 being included with sales taxes.
• Intergovernmental revenues decreased by $769,009 due to decreased grant revenues. In the prior year, the City received Coronavirus grant funding with ended in FY 2023.
Interest increased by $371,997 primarily due to rising interest rates.
Expenditures by Function
Governmental Funds
For the Years Ended June 30, 2024 and 2023
(in thousands)
2024 2023
Amount % of Total Amount % of Total Variance % Change
General government $ 615,512 8.7% $ 713,912 9.7% $ (98,400) (13.8)% Public safety 2,792,195 39.7 % 2,376,170 32.2% 416,025 17.5% Public works 2,142,911 30.4 % 2,304,760 31.2 % (161,849) (7.0)% Community development 679,232 9.6 % 349,529 4.7 % 329,703 94.3 % Parks and recreation 581,662 8.2% 299,593 4.1 % 282,069 94.2 % Capital outlay 243,082 3.4 % 1,333,587 18.1 % (1,090,505) (81.8)% $ _7,054,594 100.0% $7,377,551 100.0% S_ (322,957) (4.4)% 9 CITY OF WILLIAMS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
The $322,957 decrease in governmental fund expenditures can be primarily attributed to the following • Public Safety expenditures increased by $416,025, primarily due to presentation differences. In the previous /ear, expenditures only included Police Department expenditures and starting in FY 2024, public safet corporated Fire District expenditures. had the FY 2023 Fire District expenditures been included, the actua change would have been a decrease of $34,348.
Community development expenditures increased by $329,703, primarily due to Community Development Block Grant expenditures totaling $287,290 in FY 2024 for building rehabilitation costs. • Capital Outlay expenditures decreased by $1,090,505 primarily due to large street capital expenditures incurred in the previous fiscal year.
General Fund
The General Fund is the main operating fund of the City, and accounts for general operations including public safety, public works, community development, parks and recreation and administration. The General Fund revenues of 56,240,097 decreased by $364,395 from $6,604,492 in the prior year. This decrease is attributed to the decrease ir grant revenues received primarily from Coronavirus funding which ended in FY 2023 General fund expenditures of $5,082,477 decreased by $188,441 from $5,270,918 in the prior year. This decrease is primarily attributed to lower expenditures in Public Safety with lower expenditures from the Police Department.
At June 30, 2024, the General Fund fund balance was $8,816,153 which is an increase of $709,852 over the prio year. As a measure of the General Fund's ability to meet operating expenditures, it is useful to note that unassigne fund balance represents approximately 0.6% of total General Fund expenditures.
Other Major Governmental Funds
CDBG Fund
The CDBG fund accounts for the City's CDBG and HOME program loans. Assets consist of restricted cash and investments and loans receivable. Fund balance decreased due to current year expenditures along with a prior period adjustment to correct the deferred inflows of resources related to unavailable revenues Development Fund
The Development fund accounts for fees paid by developers and used for public facilities improvements.
Streets Fund
Enterprise Funds
The City has two Enterprise funds - the Water fund and the Sewer fund. The City's Enterprise funds generally account for services charged to external or internal customers through fees he Water fund net position increased $2,563,209 from the prior year. The increase is attributed to grant procee ceived from the State of California Department of Water Resources for the Williams New Well and Pipeli Replacement Project.
10 CITY OF WILLIAMS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
The Sewer fund net position increase $(137,602) from the prior year. The increase is primarily attributed to the recognition of depreciation expense, which represents a noncash accounting adjustment to reflect the use of capital assets over time. Although this expense reduces reported net position, it does not impact the fund's cash flow or ability to meet current obligations.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
Detailed information regarding composition and activity in capital assets is provided in Note 5 to the financial statements. The City's investment in capital assets as of June 30, 2024 totaled $40,371,039 (net of accumulate depreciation). The investment in capital assets includes land, construction in progress, buildings and improvements, machinery and equipment, and water and sewer assets.
Capital Assets at the End of the Year
Governmental Activities Business-type Activities Total
2024 2023 2024 2023 2024 2023
Land 3,913,214 3,913,214 216,067 $ 216,067 $ 4,129,281 $ 4,129,281 Construction in progress 423,801 8,811,999 6,825,689 9,235,800 6,825,689 Water system 6,418,986 5,340,961 6,418,986 5,340,961
ewer syster 20,401,695 20,401,695 20,401,695 20,401,695 uildings and improvement 34,193,037 33,670,572 34,193,037 33,670,572 Machinery and equipment 1,497,401 1,497,401 4,110,608 4,110,608 5,608,009 5,608,009 Accumulated depreciation (26,875,886) (26,447,007) (12,739,883) (11,962,483) (39,615,769) (38,409,490) Total $ 13,151,567 $_12,634,180 $_27,219,472 $_24,932,537 : $_40,371,039 $_37,566,717 Debt Administration
The City's total long-term debt for governmental activities increased by $31,480.
The City's total debt for its business-type activities decreased $395,206 primarily due to the payment of scheduled debt service.
Detailed information regarding composition and activity in long-term debt is provided in Note 6 to the financial statements.
Long-Term Debt
Governmental Activities Business-type Activities Total
2024 2023 2024 2023 2024 2023
-
2013 USDA Water Loan $ - $ $ 2,076,500 $ 2,120,700 $ 2,076,500 $ 2,120,700 2010 SRF Funds 6,551,366 6,915,331 6,551,366 6,915,331
Compensated absences 211,858 180.378 128,646 115,687 340,504 296,065 Total $_ 211,858 $ 180,378 $ 8.756.512 $_9,151,718 $ 8,968,370 $_9,332,096
GENERAL FUND BUDGETARY HIGHLIGHTS
The City's annual budget is the legally adopted expenditure control document of the City. Budgets are prepared on a nodified accrual basis consistent with GAAP, except that for budgetary purposes: revenues are recorded when received; interfund loans and repayments are recorded as revenues and expenditures; and capital expenses are For the City's General Fund, actual revenues recognized were $115,269 more than budgeted, while actual expenditures were $484,169 less than budgeted.
11 CITY OF WILLIAMS
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide a general overview of the City's finances, and to demonstrate the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be directed to:
City of Williams Finance Department
P.O. Box 310
810 E Street
Williams, California 95987.
12 This page is intentionally left blank.
CITY OF WILLIAMS
STATEMENT OF NET POSITION
JUNE 30, 2024
Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments (Note 2) $ 8,832,173 $ 1,858,024 $ 10,690,197 Receivables
Accounts 57,686 392,428 450,114
Taxes 753,335 753,335
Grants 917.446 917,446
Loans (Note 3) 5,002,545 5,002,545
Internal balances (Note 4) 649,536 (649,536)
Restricted cash and investments (Note 2) 4,134,420 4,134,420 Capital assets (Note 5):
Non-depreciable 4,337,015 9,028,066 13,365,081
Depreciable, ne 8.814,552 18,191,406 27,005,958
•otal capital assets, ne 13,151,567 27,219.472 40,371.039 Total Assets 32,581,262 29.737.834 62.319.096
DEFERRED OUTFLOWS OF RESOURCES
Changes in the net pension liability (Note 7) 1.347.557 621,134 1,968.691 Total Deferred Outflows of Resources 1,347,557 621,134 1,968,691
LIABILITIES
Accounts payable and accrued liabilities 970,957 1,336,532 Accrued payroll and benefits 109,171 205.575 109,171
Deposits payable 71,950 71,950
Long-term liabilities (Note 6):
Due within one year 211,858 538,011 749,869
Due in more than one year 8.218,501 8.218,501
Net pension liability (Note 7):
Due in more than one year 2,308.994 1,258.631 4.067.625 Total Liabilities 4,172,930 10,380,718 14,553,648
DEFERRED INFLOWS OF RESOURCES
Changes in the net pension liability (Note 7) 136,196 62,774 198.970 Total Deferred Inflows of Resources 136,196 62.774 198.970
NET POSITION
Net investment in capital assets 12,939,709 18,591,606 31,531,315 Restricted for:
70,248 70,248
192,479 192,479
4,068,407 : 4,068,407
Grants 13,451 13,451
Capital projects 102,299 102,299
Unrestricted 12,233,100 1.323,870 13.556,970
Total Net Position 29.619.693 19,915,476 $ 49.535.169
See accompanying notes to the basic financial statements.
FOR THE ENA NO ONE 5. 20
Program Revenues Net (Expense) Revenue and Changes in Net Positior Primary Governmen
Operating Capital
Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
PRIMARY GOVERNMENT
Governmental activities:
General government
Public safety
Public works
Community development
Parks and recreation
Total governmental activities
Business-type activities:
Water
Sewer
Total business-type activities --E3523
Total primary government
General revenues:
Taxes:
Property taxe: 1,478,004 1,478,004
Sales and use taxes 1,829,516 1,829,516
Local 1,350,945 1,350,945
Motor vehicle in-lieu 618,711 618.711
Transient occupancy tax 501,694 501,694
Franchise fees 305,779 305,779
Business licenses 63,827 63,827
Investment income 821,087 76,211 897,298
Other revenues 132,544 9,930 142,474
Transfers 239,721 (239,721)
Total general revenues and transfers 7,341,828 (153,580) 7,188,248 Change in net position 533.097 2,648,365 3.181,462
let position - July 1, 202 28,061,765 17,489,869 45,551,634 rior period restatement (Note 13 1.024,831 (222,758 802,073 Net position - July 1, 2023, restated 29.086,596 17,267,111 46,353,707 Net position - June 30, 2024 29.619,693 $, 19.915,476 3. 49.535,169 See accompanying notes to the basic financial statements.
CITY OF WILLIAMS
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2024
General Governmental Governmental
CDBG Development Streets Fund Funds
ASSETS
Cash and investments $6,749,075 $ - $ - $ - $ 378,636 $ 7,127,711 Receivables:
Accounts 6,785 38,185 12,716 57,686
Taxes 753,335 : 753,335
Loans 1,659,058 4,963,871 : 4,963,871
Due from other funds 1,659,058
Restricted cash and
investments 514,525 3.619,895 4,134,420
Total Assets $ 9.168,253 $ 5.478,396 $ 3,619,895 $ 38.185 391.352 $ 18.696.081
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
(DEFICITS)
LIABILITIES
Accounts payable and accrued
liabilities $ 170,979 19,365 $ 46,648 $ 692,987 $ 12,875 $ 942,854 Accrued payroll and benefits 109,171 109,171
Deposits payable 71,950 71,950
Due to other funds 996,652 12,870 1,009,522
Total Liabilities 352,100 19.365 46,648 1.689,639 25,745 2,133,497
DEFERRED INFLOWS OF
RESOURCES
Unavailable revenues 4,963,871 4.963,871
Total Deferred Inflows of
Resources 4.963.871 4.963.871
FUND BALANCES (DEFICITS)
Restricted 495,160 3,573,247 378,477 7.161.824
Unassigned 8.816.153 (1.551.454) (12,870)
Total Fund Balances
(Deficits) 8,816,153 495,160 3,573,247 (1,651,454) 365,607 11,598,713 Total Liabilities, Deferred
Inflows of Resources
and Fund Balances
(Deficits) $9.168.253 $5.478.396 $ 3019895 $ 38.185 $ 391.352 $_18.696,081 See accompanying notes to the basic financial statements.
CITY OF WILLIAMS
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
JUNE 30, 2024
Total fund balances reported on the governmental funds balance sheet $ 11,598,713 Amounts reported for governmental activities in the statement of net position are different because of the following:
Capital assets of $40,027,453, net of accumulated depreciation of $26,875,886, used ir governmental activities are not financial resources and therefore are not reported in the governmental funds. 13,151,567
ertain notes, loans, and interest receivables are not available to pay for current perio xpenditures and therefore are offset by deferred inflows of resources in the governmenta 4,963,871
Deferred outflows of resources related to changes in the net pension liability are not applicable to the current period. 1,347,557
Long term liabilities are not due and payable in the current period and, therefore are not reported in the governmental funds:
Compensated absences (211,858)
Net pension liability (2,808,994)
Deferred inflows related to changes in the net pension liability (136,196) Internal service funds are used by management to charge costs of certain activities, such as equipment replacement, to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the Statement of Net Position. 1.715,033 Net position of governmental activities $ 29.619,693
See accompanying notes to the basic financial statements. 16 CITY OF WILLIAMS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
General Governmental Governmental
Dovalopment Strets Fund Funds Funds
REVENUES
Property taxes $1,478,004 $ - $ : $ - $ 126,582 $ 1,604,586 Sales taxes 1,676,177 - 153,339 1,829,516
Local taxes 964,599 386,346 : 1,350,945
Motor vehicle in lieu 618,711 618,711
Transient occupancy 501,694 501,694
Franchise fees 305,779 305,779
Business license fees 63,857 63,857
Charges for services 204,689 : 86,469 : 11,430 305,588
Intergovernmental 49,910 - 191,159 241,069
Interest 341,549 33,116 133.647 19,092 527,404
-
Other revenues 35,128 35,128
Total Revenues 6.240.097 33.116 220,116 539,685 351,263 7,384,277
EXPENDITURES
Current operations:
General government 615,512 615,512
Public safety 2,633,958 : 48,134 1.104.171 110,103 2,792,195 Public works 936,543 102,197 2,142,911
Community development 379,597 299,635 89.175 : 5,000 679,232 Parks and recreation 487,487 581,662
Capital outlay 29,380 213.702 243.082
Total Expenditures 5.082.477 299,635 137,309 1,104,171 431,002 7.054,594 Excess (deficiency) of revenues
over expenditures 1,157,620 (266,519) 82,807 (564.486) (79,739) 329,683
OTHER FINANCING SOURCES (USES)
Transfers out (515.679) (11,417) (527.096)
Total Other Financing
Sources (Uses) (515,679) (11,417) (527.096)
Net change in fund balances 641,941 (266.519) 82,807 (564,486) (91,156) (197.413) Fund balance (deficit) -
July 1,2023 8,106,301 1,574,474 3,490,440 (1,086,968) 456,763 12,541,010 Prior period restatement (Note
13) 67.911 _(812,795) (744,884)
Fund balance (deficit) - July 1,
2023, restated 8,174.212 761,679 3,490,440 (1,086.968) 456,763 11,796,126 Fund balance (deficit) -
June 30, 2024 $ 8.816.153 $ 495,160 $ 3.573,247 $ (1.651,454) $ 365,607 $ 11.598.713 See accompanying notes to the basic financial statements.
CITY OF WILLIAMS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
Reconciliation of the change in fund balances - total governmental funds to the change in net position of governmental activities:
Net change in fund balances - total governmental funds $ (197,413) 946,266
Depreciation expense (428,879)
Receipts of payments and disbursements of funds related to notes and loans receivable are reported as revenues and expenditures, respectively, in governmental funds, but an ncrease and decrease, respectively, in notes receivable in the Statement of Net Position (74,405)
235,202
Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds Change in accrued compensated absences (31,480)
Pension expense related to deferred outflows and inflows of resources (279,043) Internal service funds are used by management to charge the costs of certain activities, such as equipment replacement, to individual funds. The net revenue (expense) of the internal service funds is reported with the governmental funds. 362,849 Change in net position of governmental activities $. 533.097 See accompanying notes to the basic financial statements. 18 OCITY OF WILLIAMS
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2024
Governmental
Business-type Activities Activities
Internal Service
Water Sewer Totals Fund
ASSETS
Current assets:
Cash and investments $ 6,171 $ 1,851,853 $ 1,858,024 $ 1,704,462 Receivables:
Accounts 145,995 246,433 392,428
Grants 917,446 917,446
Loans - 38,674
Total Current Assets 1,069,612 2,098,286 3,167,898 1,743,136 Non-current assets
Advances to other funds - 286,460 286,460
Capital assets:
Non-depreciable 8,389,132 638,934 9,028,066
Depreciable, net 4,448,909 13.742,497 18,191,406
Total capital assets net 12,838,041 14.381,431 27,219.472 Total Non-Current Assets 12.838,041 - 14.667,891 27,505,932 Total Assets 13,907,653 16.766.177 30.673,830 1,743,136
DEFERRED OUTFLOWS OF RESOURCES
Changes in net pension liability 201,565 419.569 621,134 Total Deferred Outflows of Resources 201,565 419,569 621,134
LIABILITIES
Current liabilities:
291,896 73,679 365,575 28,103
Do one mences aren 39,265 89,381 128,646
649,536 649,536
Bonds payable - current 45,400 363.965 409.365
Total Current Liabilities 1.026,097 527.025 1,553,122 28,103 Long-term liabilities:
Advances from other funds 286,46ł 286,460
Bonds payable - non-current 2.031,100 6,187.401 8,218,501 Net pension liability 406,389 852.242 1,258,631
Total Long-term Liabilities 2,723.949 7,039,643 9,763,592 Total Liabilities 3.750.046 7,566,668 11.316,714 28,103
DEFERRED INFLOWS OF RESOURCES
Changes in net pension liabilit 20,372 42,402 62,774
Total Deferred Outflows of Resources 20,372 42,402 62,774 NET POSITION:
Net investment in capital assets 10,761,541 7,830,065 18,591,606 Unrestricted (422,741) 1,746,611 1,323,870 1.715,033
Total Net Position - 10,338,800 $ 9,576,676 $ _ 19.915,476 $ - 1,715.033 See accompanying notes to the basic financial statements.
CITY OF WILLIAMS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
Governmental
Business-type Activities Activities
Internal
Water Sewer Totals Service Fund
OPERATING REVENUES
Utility revenues $ 1,198,181 $ 2,344,640 $ 3,542,821 $
Other revenues 9,930 9,930 97.416
Total Operating Revenue 1,208,111 2,344,640 3.552,751 97,416
OPERATING EXPENSES
Salaries and benefits 473,423 793,613 1,267,036
Other fringe benefits 278,022 426,330 704,352 s0805
General administration 54,297 56,962 111,259
Maintenance and operations 311,867 517,808 829,675
Professional services 44,735 19,097 63,832
Contracted services 11,804 115,970 127,774
Depreciation 222,928 554,472 777,400
Total Operating Expenses 1,397,076 2,484,252 3,881,328 559,865 Operating Income (Loss) (188,965) (139,612) (328,577) (462,449)
NON-OPERATING REVENUE (EXPENSES)
Intergovernmental revenue 201,560 3,204,368
Interest income 3,002,808 76,209 58,481
76,211
Interest expense (63,916) (63,916)
Total Non-Operating Revenues (Expenses) 2,938,894 277,769 3,216,663 58,481 Income (Loss) Before Transfers 2.749,929 138,157 2,888,086 (403,968)
TRANSFERS
Transfers in 766,817
Transfers out (68,491) (171,230) (239,721)
Change in net position 2,681,438 (33.073) 2,648,365 362,849 et Position - July 1, 202 7,775,591 9,714,278 17,489,869 1,352,184 ior Period Restatement (Note 1; (118,229) (104,529) (222,758) Net Position - July 1, 2023, restated 7,657,362 9.609,749 17,267,111 1,352,184 Net Position - June 30, 2024 $ 10,338,800 $_ 9.576.676 $ 19.915,476 $ 1,715,033 See accompanying notes to the basic financial statements.
CITY OF WILLIAMS
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
Governmental
Business-type Activities Activities
Internal
Water Sewer Totals Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers 1,197,612 $ 2,348,008 3,545,620 100,145 ash paid to supplie (415,270) (697,539) (1,112,809) (625,565) ash paid to employe (707,598) (1.126,115) (1.833.713)
Net Cash Provided by (Used for) Operating
Activities 74.744 524,354 599,098 (525,420)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Interfund loan repayments received 628,621 20,915 649,536 Intergovernmental 2,110,397 201,560 2,311,957 706817
Transfers from other funds
Transfers to other funds (68.491) (171,230) (239.721)
1. Net Cash Provided by Noncapital
Financing Activities 2.670.527 51,245 2,721,772 766,817
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (3,043,411) (20,924) (3,064,335) Principal paid on capital debl (44,200) (363,965) (408,165) Interest paid on capital debt (63,916) (63,916)
Net Cash Used for Capital and Related
Financing Activities (3,151.527) (384,889) (3,536,416)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends 2 76,209 76,211 58.481
Net Cash Provided by Investing Activities 2 76.209 76.211 58,481 Net Increase (Decrease) in Cash and Cash
Equivalents (406,254) 266,919 (139,335) 299,878
Cash and Cash Equivalents - July 1, 2023 412,425 1,584,934 1,997,359 1.404,584 Cash and Cash Equivalents - June 30, 2024 - 6,171 1,851,853 $1,858.024 $ 1,704,462 See accompanying notes to the basic financial statements.
CITY OF WILLIAMS
STATEMENT OF CASH FLOWS (CONTINUED)
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
Business-type Activities
Internal
Water Sewer Totals Service Fund
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED BY (USED
FOR) OPERATING ACTIVITIES:
Operating Income (Loss) $ (188,965) $ (139,612) $ (328,577) $ (462,449) djustments to reconcile operating income (loss
o net cash provided by (used for) operatir
activities:
Depreciation expense 222,928 554,472 777,400
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable (10,499) 3.368 (7,131)
Loans receivable 2,729
Pension related deferred outflows of
59,831 124,540 184,371 -
Increase (decrease) in:
Accounts payable 7,433 12,298 19,731 (65,700)
Net pension liability (19,808) (40,546) (60,354)
Compensated absences 3,597 9,362 12,959
Pension related deferred inflows of resources 227 472 699 Net Cash Provided by (Used for) Operating
Activities $_ 74,744 $ 524,354 599,098 $. (525,420)
See accompanying notes to the basic financial statements. 22 CITY OF WILLIAMS
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2024
Colusa LAFGO
ASSETS
Cash and investments (Note 2) $_ 162.432
Total Assets 162,432
LIABILITIES
Accounts payable 12,112
Total Liabilities 12.112
NET POSITION
Restricted for individuals, organizations, and other governments 150,320 Total Net Position 150.320
See accompanying notes to the basic financial statements.
CITY OF WILLIAMS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
Colusa LAFCO
ADDITIONS
Interest income $ 4,455
Other revenues 166,233
Total Additions 170,688
DEDUCTIONS
General and administration 86,014
Professional services 10,918
Contracted services 20,060
Total Deductions 116.992
Change in Fiduciary Net Position 53,696
Fiduciary Net Position - July 1, 2023 96,624
Fiduciary Net Position - June 30, 2024 $ 150,320
See accompanying notes to the basic financial statements. 24 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Description of Reporting Entity
The City of Williams ("the City") operates under the City Council - Manager form of government and provides or As required by accounting principles generally accepted in the United States of America, these basic financial statements present the City of Williams (the primary government) and any component units.
Blended Component Unit
The City of Williams Public Financing Corporation (the Corporation) is a nonprofit benefit corporation organizec under the nonprofit public benefit corporation law of the state of California to provide financial assistance to the City by acquiring, constructing, and financing various facilities, land, and equipment, and by leasing certain facilities, land, and equipment for the use, benefit, and enjoyment of the public served by the City. It is reported as if it were part of the primary government because the City Council, although acting in a different capacity, is the controlling Joint Agencies
The Williams Fire Protection Authority (the Authority) is a separate government entity, which was created by a Joint Powers Agreement between the City and the Williams Fire Protection District of Colusa County. The Authority provides fire protection services to the City. The governing board of the Authority is comprised of two members appointed by the City, two members appointed by the Williams Fire Protection District, and one member appointed by the Williams Volunteer Fire Department. Financial data of the Williams Fire Protection Authority is not included in the financial statements of the City because the City does not exercise accountability over the organization.
B. Basis of Presentation
The City's basic financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America. These standards require that the financial statements described below be presented.
Government-wide Financial Statements
The Statement of Net Position and Statement of Activities display information about the reporting government as a whole. They include the activities of the overall City government except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Interfund services provided and used are eliminated in the process of consolidation. The City's net position is reported in three parts - net investment in capital assets; restricted net position; and unrestricted net position. The City first utilizes restricted resources to finance qualifying activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities are financed in part by fees charged to external parties for goods or services.
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 those 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, and 2) grants and contributions that are restricted to meeting operational or capital requirements
program revenues are reported instead as general revenues. 25 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fund Financial Statements
the means by which spending activities are controlled.
Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories with each major fund displayed in a separate column. A fund is considered major if it is the primary operating fund of the City or meets the following criteria:
a. Total assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type; and b. Total assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined.
All remaining governmental funds are aggregated and reported as nonmajor funds in a single column, regardless of their fund type.
The funds of the financial reporting entity are described below:
Governmental Funds
General Fund - The General Fund is the general operating fund of the City and is always classified as a major fund.
It is used to account for all activities except those legally or administratively required to be accounted for in other funds.
Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted or committed to expenditures for specified purposes other than debt service or capital projects.
Capital Project Funds - Capital Project Funds are used to account for financial resources that are restricted, committed, or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other capital assets.
Proprietary Funds
Enterprise Funds - Enterprise Funds are used to account for business-like activities provided to the general public.
These activities are financed primarily by user charges and the measurement of financial activity focuses on net income measurement similar to the private sector.
ternal Service Funds - Internal service funds are used to account for, and finance, services and commoditie irished by a designated department of a governmental unit to other departments of the same governmental uni The City uses internal service funds to account for vehicle, benefits, insurance, and infrastructure activities.
Fiduciary Funds (not included in government-wide statements) Custodial Funds - Custodial Funds are used to report resources held by the City in a purely custodial capacity, which involves only the receipt, temporary investment, and remittance of fiduciary resources to individuals and private organizations. The Custodial funds of the City are used for funds related to the Colusa LAFCO 26 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Major Funds
The City reports the following major governmental funds in the accompanying financial statements:
eneral Fund - This is the general operating fund of the City. It is used to account for all financial resources expec hose required to be accounted for in a separate fun
CDBG Fund - This fund accounts for revenues and expenditures from repayment of CDBG loans and HOME brogram administration funds
Development Fund - This fund accounts for fees paid by developers for public facilities improvements along with water and sewer connection fees collected from developers and property owners that are required by the California Government Code to be expended for capacity expansion..
Streets Fund- This fund accounts for revenues and expenditures for street improvements. Funding is primarily from monies apportioned for street improvements under the Street and Highway Code Section 2105, 2106, 2107 and 2107.5 of the State of California, the Colusa County Transportation Commission, Regional Surface Transportation Program, and Road Maintenance and Rehabilitation Account.
The City reports the following major proprietary funds in the accompanying financial statements:
Water Fund - This fund accounts for the operation and maintenance of the City's water distribution system.
Sewer Fund - This fund accounts for the operation and maintenance of the City's wastewater collection system.
C. Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe "which" transactions are recorded within the various financial statements. Basis of accounting refers to "when" revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements regardless of the measurement focus applied Measurement Focus
On the government-wide Statement of Net Position and the Statement of Activities, both governmental an proprietary activities are presented using the economic resources measurement focus as defined in item "b" below In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate:
a. All governmental funds are accounted for using a "current financial resources" measurement focus. With this measurement focus, only current assets and deferred outflows of resources, and current liabilities and deferred inflows of resources generally are included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. b. All proprietary funds utilize an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets and deferred outflows of resources, and all liabilities and deferred inflows of resources (whether current or noncurrent) associated with the operation of these funds are reported. Proprietary fund equity is classified as net position. c. Fiduciary funds use the "economic resources" measurement focus and the accrual basis of accounting. 27 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
Basis of Accounting
are recognized when the exchange takes place.
In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting.
Under the modified accrual basis of accounting, revenues are recognized when "measurable and available." Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or soon enough thereafter to pay current liabilities. The City defines available to be within 60 days of year-end. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and interest which are reported when due. Governmental capital asset acquisitions are reported expenditures in governmental funds. Proceeds from governmental long-term liabilities and acquisitions under capital leases are reported as other financing sources.
Those revenues susceptible to accrual include taxes, intergovernmental revenues, interest and charges for services.
Certain indirect costs are included in program expenses reported for individual functions and activities.
Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the terms of grant agreements, the City may fund certain programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position are available to finance program expenditures. The City's policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.
All proprietary funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are and expenses are recorded when the liability is incurred or economic asset is used 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 operations. The principal operating revenues of the enterprise funds are charges for services. 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. 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.
D. Cash and Investments
In order to maximize investment return, the City pools its available cash for investment purposes. The cash 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. Receivables
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. eceivables are recorded in the financial statements net of any allowance for doubtful accounts, if applicable, an stimated refunds due. Major receivable balances for the governmental activities include sales and use taxes franchise taxes, grants, fines, interest, and other fees. Federal and state grants are considered receivable and accrued as revenue when reimbursable costs are incurred. 28 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) in the fund financial statements, material receivables in governmental funds include revenue accruals such as sales tax, franchise tax, and grants and similar intergovernmental revenues since they are usually both measurable and available. Nonexchange transactions collectible but not available are recorded as deferred inflows of resources in the fund financial statements in accordance with modified accrual, but are not deferred in the government-wide financial statements in accordance with the accrual basis. Interest and investment earnings are recorded when earned only if paid within 60 days since they would be considered both measurable and available. Long-term loans in governmental funds are treated as expenditures in the year advanced and as revenues in the year repayment is measurable and available. Loans receivable are recorded in the fund financial statements, but are recorded as deferred inflows of resources to indicate they do not represent current financial resources. Proprietary fund material receivables consist of all revenues earned at year-end and not yet received. Service charges and interest earnings comprise the majority of proprietary fund receivables.
F. Capital Assets
Capital assets, which include land, structures and improvements, machinery and equipment and infrastructure assets, are defined by the City as assets with a cost of $100,000 and an estimated useful life in excess of five years Such assets are recorded at historical cost if purchased or constructed. Contributed capital assets received are recorded at acquisition value as of the date received. Capital outlay is recorded as expenditures in the governmental funds and as assets in the government-wide financial statements to the extent the City's capitalization threshold is Capital assets used in operations are depreciated or amortized using the straight-line method over the assets estimated useful life in the government-wide financial statements. The range of estimated useful lives by type of asset is as follows:
Depreciable Asset Estimated Lives
Buildings 20 - 50 years
Improvements 20 years
Machinery and equipment 5 - 10 years
Licenses and vehicles 5 years
Maintenance and repairs are charged to operations when incurred. Betterments and major improvements which significantly increase values, change capacities or extend useful lives are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.
G. Compensated Absences
A liability is calculated for all the costs of compensated absences based upon benefits earned by employees in the current period for which there is a probability of payment at termination. The salary and related payroll costs are those in effect at June 30, 2024. It is the City's policy to record sick leave as an operating expense when taken. The current memorandum of understanding between the City and its employees allows the payments of one third of unused sick leave upon termination of employment if employee meets the defined longevity criteria. Otherwise, such benefits do not vest, nor is payment probable; however, unused sick leave is added to the creditable service period for calculation of retirement benefits when the employee retires. All vacation and sick leave is accrued when incurred in the government-wide and proprietary fund financial statements. In governmental funds, the cost of vacation and sick leave benefits is recognized when payments are made to employees.
H. Long-Term Liabilities
In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business- type activities, or proprietary fund type statement of net position. Initial-issue bond premiums, discounts, and insurance costs are deferred and amortized over the life of the bonds using the straight-line method (which approximates the effective interest method).
29 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Interfund Transactions
Interfund transactions are reflected as either loans, services provided or used, reimbursements or transfers. Loans are reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are eterred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from othe unds" (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmenta activities and the business-type activities are reported in the government-wide financial statements as "internal balances". Advances between funds, as reported in the fund financial statements, are offset by nonspendable fund balance in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources.
Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental and proprietary funds are netted as part of the reconciliation to the government-wide presentation.
J. Unearned Revenue
Under the accrual and modified accrual basis of accounting, revenue may be recognized only when it is earned.
When assets are recognized in connection with a transaction before the earnings process is complete, those assets are offset by a corresponding liability for unearned revenue.
K. Pensions
been determined on the same basis as they are reported by CaPERS. 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.
L. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet will sometimes report a separate section for separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City currently reports deferred outflows related to pensions. See Note 7 more information.
In addition to liabilities, the statement of net position or balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has two items that qualify for reporting in this category, unavailable revenues and inflows from changes in the net pension liability. Unavailable revenue is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from intergovernmental revenues that have not been received within the modified accrual period. In the government-wide financial statements. the City reports deferred inflows of resources related to inflows from changes in the net pension liability. See Note 7 for more information on the deferred inflows of resources from the net pension liability 30 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Equity Classifications
Government-wide Financial Statements
Net position is the excess of all the City's assets and deferred outflows of resources over all its liabilities and deferred inflows of resources, regardless of fund. Net position is divided into three categories. These categories apply only to net position, which is determined at the government-wide level, and are described below:
a. Net investment in capital assets - Consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or othe borrowings that are attributable to the acquisition, construction, or improvement of those assets b. Restricted net position - Consists of net position with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation.
Unrestricted net position - All other net position that does not meet the definition of "restricted" or "net investment in capital assets".
Fund Financial Statements
The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows:
Nonspendable - Amounts that cannot be spent because they are either (1) not in spendable form or (2) legally or contractually required to be maintained intact. o. Restricted - Amounts that are restricted for specific purposes when constraints placed on the use of resources are either (1) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (2) imposed by law through constitutional provisions or enabling legislation.
C. Committed - Amounts that can only be used for specific purposes pursuant to constraints imposed by formal action (resolution) of the government's highest level of decision-making authority. d. Assigned - Amounts that are constrained by the City Council's intent to be used for specific purposes through a resolution, but are neither restricted or committed. Fund balances may be assigned by the City Administrator or department heads with City Council approval.
Unassigned - Amounts representing the residual balance for the general fund or any other fund with a negative fund balance
Further detail about the City's fund balance classification is described in Note 8.
N. Property Taxes
Assessed values for purposes of property taxes are determined on an annual basis for the period July 1 to June 30 y the Colusa County Assessor as of January 1. Taxes are levied annually on July 1 and become a lien on rea roperty at January 1. Taxes are due November 1 and February 1 and are delinquent if not paid by December 10 and April 10, respectively, at which time applicable penalties and interest are assessed. Unsecured taxes become delinquent if not paid by August 31.
31 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from these estimates.
P. Implementation of Government Accounting Standards Board Statements Effective July 1, 2023, the City implemented the following accounting and financial reporting standards:
Government Accounting Standards Board Statement No. 99
In April 2022, GASB issued Statement No. 99, Omnibus 2022. The primary objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve consistency of authoritative literature by ddressing (1) practice issues that have been identified during implementation and application of certain GASI statements and (2) accounting and financial reporting for guarantees. There was no significant impact to the City's financial statements as a result of implementation.
Government Accounting Standards Board Statement No. 100 In June 2022, GASB issued Statement No. 100, Accounting Changes and Error Corrections - An Amendment of GASB Statement No. 62. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The City adopted this accounting guidance for its June 30, 2024 year-end. See Note 13 for further details.
Q. Future Governmental Accounting Standards Board Statements These statements are not effective until July 1, 2024 or later. The City has not determined the effects, if any, on the financial statements.
Government Accounting Standards Board Statement No. 101 In June 2022, GASB issued Statement No. 101, Compensated Absences. The primary objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences by aligning the recognition and measurement guidance under a unified model and amending certain previously required disclosures. The requirements of this statement are effective for the City's fiscal year ending June 30, 2025.
Government Accounting Standards Board Statement No. 102 In December 2023, GASB issued Statement No. 102, Certain Risk Disclosures. The primary objective of this Statement is to provide users of government financial statements with essential information about risks related to a government's vulnerabilities due to certain concentrations or constraints. A concentration is defined as a lack of diversity related to an aspect of a significant inflow of resources or outflow of resources. A constraint is a limitation imposed on a government by an external party or by formal action of the government's highest level of decision- making authority. The requirements of this statement are effective for the City's fiscal year ending June 30, 2025.
Government Accounting Standards Board Statement No. 103 In April 2024, GASB issued Statement No. 103, Financial Reporting Model Improvements. The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government's accountability. This Statement also addresses certain application issues. The requirements of this statement are effective for the Citv's fiscal vear ending June 30, 2026.
32 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Governmental Accounting Standards Board Statement No. 104 NOTE 2: CASH AND INVESTMENTS
Cash and investments as of June 30, 2024 were classified in the accompanying financial statements as follows:
Restricted Cash
Cash and and
Investments Investments Total
Governmental activities $ 8,832,173 $ 4,134,420 $ 12,966,593 Business-type activities 1.858.024 1.858.024
Total government-wide cash
and investments 10.690,197 4,134,420 14,824.617
Fiduciary activities 162,432 162,432
Total Cash and Investments $ 10,852,629 $ 4,134,420 $ 14,987.049 Cash and investments at June 30, 2024 consisted of the following:
Cash on hand $ 1,815
Cash in banks 2,932,174
Total cash 2.933,989
California CLASS 8,764,041
Local Agency Investment Fund (LAIF) 3.289,019
Total investments 12,053,060
Total Cash and Investments $ 14,987,049
33 CITY OF WILLIAMS
VOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code and the City's Investment Policy Maximum Maximum
Minimum Credit Maximum ercentage o Individual
Authorized Investment Type Rating Maturity Portfolio Holding Local Agency Investment Fund (LAIF) N/A N/A Unlimited 100% U.S. Treasury Obligations AAA 5 years None 100%
U.S. Government Agency Securities AAA 5 years None 100% California CLASS N/A N/A None 100%
Repurchase Agreements A-1, P-1, or F-1 1 year 25% $1 million Banker's Acceptances A-1, P-1, or F-1 30% $1 million
9 months
Commercial Paper A-1, P-1, or F-1 25% $1 million
A-1, P-1, or F-1
Negotiable Time Certificates of Deposit or AA 3 years 30% $1 million Medium Term Corporate Notes AA 5 years 30% $1 million
Money Market Funds AA N/A 15% $1 million
Mutual Funds AA N/A 20% $1 million
Asset Backed Securities AAA 5 years 20% $1 million
Investment Valuation
nvestments 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 a the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to neasure 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. The City did not have any investments subject to valuation on a recurring basis at June 30, 2024 Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. 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 portfolio (in relation to the amortized cost of that portfolio).
The balance available for withdrawal is based on the accounting records maintained by LAF, which is recorded on an amortized cost basis. The investment of $3,289,019 is not subject to valuation on a recurring basis.
Investment in California CLASS
California CLASS is a joint powers authority created by public agencies to provide a convenient method for agencies to pool their assets for investment purposes. California CLASS is governed by a Board of Trustees made up on experienced local agency executives. The Prime portfolio is a stable $1.00 net asset value investment that is rated AAAm by Standard & Poor's. It offers safety, daily liquidity, and a competitive yield to California public agency participants. The investment of $8,764,041 is not subject to valuation on a recurring basis. 34 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Disclosure 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.
Remaining Maturity
Investment Type < 12 months 1 - 5 years > 5 years Fair Value California CLASS $ 8,764,041 $ 8,764,041
Local Agency Investment Funds = _
3,289.019 3.289.019
Total Investments $ 12,053.060 $ $ 12,053,060
Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City had no investments that were highly sensitive to interest rate fluctuations as of June 30, 2024.
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 (where applicable) the California Government Code, the investment policy, or debt agreements, and the actual rating as of the fiscal year end for each investment type.
Rating as of Fiscal Year End
Investment Type Total S&P Moody's
California CLASS $ 8,764,041 AAAm Not rated
Local Agency Investment Fund 3.289,019 Not rated Not rated Total $ 12.053.060
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of the City's investment in a single issuer o securities. When investments are concentrated in one issuer, this concentration presents a heightened risk o 35 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the government unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City's deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits.
NOTE 3: LOANS RECEIVABLE
The City administers various residential rehabilitation, first-time homebuyer, and down payment assistance loa rograms for low-and moderate-income families. In addition, the City has loaned monies to developers for affordable housing projects. The loans have different stated interest rates, payback periods and may be forgivable assuming all conditions are met.
The balance of the loans receivable has been offset in the fund financial statements by deferred inflows of resources as they are not deemed measurable and available (within 60 days) except those accounts that have current payment At June 30, 2024, the outstanding balance of loans receivable totaled $5,002,545 for governmental activities.
NOTE 4: INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Advances to/from Other Funds
Advances to/from other funds are non-current interfund loans. In 2013, an interfund loan was approved between the Water and Sewer funds for $500,000 for the purpose of paying off Water fund debt resulting in savings to the City The loan was issued at a rate of 2% and matures in March 2036. Annual principal and interest payments are made totaling $27,118. As of June 30, 2024 the Water fund owed the Sewer fund $286,460. 36 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 4: INTERFUND TRANSACTIONS (CONTINUED)
Due To/From Other Funds
During the course of operations, transactions occur between funds to account for goods received or services endered. These receivables and payables are classified as due from or due to other funds. In addition, when funds overdraw their share of pooled cash, the receivables and payables are also classified as due from or due to other unds. The following are due to and due from balances as of June 30, 2024 Receivable Fund Payable Fund Description Amount
Major Governmental Funds
General Fund Streets Fund Cover negative cash $ 996,652 General Fund Traffic Safety Cover negative cash 12,870
General Fund Water Cover negative cash 649.536
Total Major Governmental Due From/Due To 1,659,058
Total Due From/Due To $_ 1.659.058
Transfers
operations, and dealet us of peril pital res the raleia are the dealt a ran ers to scal year enced.
Transfer From Transfer To Description of Transfer Amount Major Governmental Funds
General Fund Side Fund transfer $ 46,050
General Fund Insurance Insurance costs 319,629
General Fund Vehicle Annual contribution 50,000
General Fund Infrastructure Annual contribution 100,000 Total Major Governmental Interfund Transfers 515,679
Jon-Major Governmental Funds
ighting & Landscaping Insurance Insurance costs 11,417
Total Non-Major Governmental Interfund Transfers 11,417 Total Governmental Interfund Transfers 527,096
Proprietary Funds
Water Insurance 68,491
Insurance cos
Sewer Insurance 171,230
Total Proprietary Interfund Transfers $ 239.721
37 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 5: CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2024, was as follows:
Balance at Balance at
Governmental Activities: July 1, 2023 Additions Retirements June 30, 2024 Capital assets, not being depreciated:
Land $ 3,913,214 $ - $ 3,913,214
Construction-in-progress 423,801 423,801
Total capital assets not being depreciated 3.913.214 423,801 4.337.015 Capital assets being depreciated
Buildings and improvements 33,670,572 522,465 1.. 34,193,037 Machinery and equipment 1,497,401 1,497,401
Total capital assets being depreciated 35,167,973 522,465 35,690,438 Less accumulated depreciation:
Buildings and improvements (25,298,118) (327,850) : (25,625,968) Machinery and equipment (1,148,889) (101,029) (1,249,918) Total accumulated depreciation (26.447,007) (428,879) (26,875,886) Total capital assets being depreciated, net 8.720.966 93,586 8,814,552 Total Capital Assets, net $ 12,634, 180 $ 517,387 $ 13,151,567 Depreciation expense was charged to functions based on their usage of the related assets as follows:
Governmental Activities:
General government $ 21,527
Public safety 56,720
Public works 56,844
Parks and recreation 53,242
Streets and highways 240,546
Total governmental activities depreciation expense 428,879 38 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 5: CAPITAL ASSETS (CONTINUED)
Balance at Balance at
Business-type Activities: July 1, 2023 Additions Retirements Transfers June 30, 2024 Capital assets, not being
depreciated:
Land $ 216,067 $ - $ - $ - $ 216,067
Construction-in-progress 6,825,689 3.064,335 (1,078,025) 8.811,999 Total capital assets not being
depreciated 7.041,756 3.064,335 (1,078.025) 9.028.066
Capital assets being depreciated
Water system 5,340,961 : 1,078,025 6,418,986
Sewer system 20,401,695 : 20,401,695
Machinery and equipment 4,110,608 4,110,608
Total capital assets being
depreciated 29.853.264 1,078.025 30.931,289
Less accumulated depreciation:
Water system (1,946,063) (222,928) (2,168,991)
Sewer system (6,276,181) (508,276) : (6,784,457)
Machinery and equipment (3,740,239) (46,196) (3.786,435) Total accumulated depreciation (11,962,483) (777,400) (12,739,883) Total capital assets being
depreciated, net 17,890,781 (777,400) 1,078.025 18,191.406 Total Capital Assets, net $ 24.932.537 $ 2,286.935 $ $. $ 27,219.472 Depreciation expense was charged to business-type functions as follows:
Business-type Activities:
Water $ 222,928
Sewer 554,472
Total business-type activities depreciation expense $ 777,400 NOTE 6: LONG-TERM LIABILITIES
A. Governmental Activities
The following is a summary of changes in governmental long-term liabilities for the year ended June 30, 2024:
Balance Balance
July 1, 2023 Additions Reductions June 30, 2024 Portion $ 180,378 $_ 31,480 $ $ 211,858
Total $ 180.378$31,480 _211.858 $ 211,858
39 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 6: LONG-TERM LIABILITIES (CONTINUED)
A description of long-term liabilities related to governmental activities at June 30, 2024 follows:
Compensated Absences
At June 30, 2024, compensated absences totaled $211,858, of which $211,858 was recorded as a current liability.
For governmental activities, compensated absences are generally liquidated by the general fund.
B. Business-type Activities
The following is a summary of changes in business-type long-term liabilities for the year ended June 30, 2024:
Balance Balance Current
July 1, 2023 Additions Reductions June 30, 2024 Portion Business-type Activities:
Loans payable:
2013 USDA Water Loan $ 2,120,700 $ (44,200) $2,076,500 1$ 45,400 2010 SRF Funds 6,915,331 (363,965) 6,551,366 363,965
Total loans payable 9.036,031 (408,165) 8.627,866 409,365 Other liabilities:
Compensated absences 115,687 12,959 128,646 128,646
Total $ 9,151.718 • $_ 12,959 $_ (408,165) $_ 8.756,512 $_ 538,011 A description of long-term liabilities related to business-type activities at June 30, 2024 follows:
2013 USDA Water Loan
In January 2014, the City entered into an installment sales agreement with the United States Department of Agriculture for construction and improvement of water facilities in the amount of $2,457,000. Semi-annual principal and interest payments are due each March 1 and September 1. The loan bears interest at a rate of 2.75% and matures in September 2053. The payments are secured by a pledge of net water revenues.
Future debt service payments on the bonds are as follows:
For the Year
Ending June 30, Principal Interest Total
2025 $ 45,400 $ 56,480 $ 101,880
2026 46,700 55,214 101,914
2027 48,000 53,912 101,912
2028 49,300 52,574 101,874
2029 50,700 1,199 51,899
2030 - 203 275,000 234,014 509,014
035 - 203: 314,900 193,510 508,410
2040 - 2044 360,700 147,133 507,833
2045 - 2049 412,900 94,024 506,924
2050 - 2054 472,900 33.218 506,118
-
Total 2,076,500 $. 921,278 $ 2,997.778
40 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 6: LONG-TERM LIABILITIES (CONTINUED)
2010 SRF Funds
In May 2009, the City entered into an agreement with the Clean Water State Revolving Fund for the wastewater reatment plant improvement project in the amount of $16,918,943. Annual principal payments are due eac December 31. The loan has a 0% interest rate and matures in December 2041. The payments are secured by pledge of net sewer revenues.
Future debt service payments on the bonds are as follows:
For the Year
Ending June 30, Principal Interest Total
2025 $ 363,965 $ $ 363,965
2026 :
363,965 363,965
2027 363.965 - 363,965
2028 363,965 - 363,965
2029 363,965 363,965
2030 - 2034 1,819,825 1,819,825
2035 - 2039 1,819,825 1,819,825
2040 - 2044 1,091,891 1.091,891
-
Total 6,551,366 $ $ 6,551,366
NOTE 7: PENSION PLAN
A. General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (the Plan), administered by the California Public Employees Benefits Provided
CaPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 41 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 7: PENSION PLAN (CONTINUED)
The Plans' provisions and benefits in effect at June 30, 2024, are summarized as follows:
Miscellaneous
Tier 1 PEPRA
Prior to On or after
Hire Date January 1, 2013 January 1, 2013
Benefit formula 2.0% @55 2.0% @ 62
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as of % of eligible Highest single
compensation year 3-year average
Required employee contribution rates 7.00% 6.75%
Required employer contribution rates 11.84% 7.68%
Required UAL contribution $108,164 $-
Safety Police
Tier l PEPRA
Prior to On or after
Hire Date February 7.2011 January 1, 2013
Benefit formula 3.0% @50 2.7% @ 57
Benefit vesting schedule 5 years of service
Benefit payments Monthly for life
Retirement age
Monthly benefits, as of % of eligible
compensation 3-year average 3-year average
Required employee contribution rates 9.00% 13.00%
Required employer contribution rates 25.65% 13.54%
Required UAL contribution $132,840 $-
Contributions
basis as of June 30 by CaPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The City's contributions to the Plan for the year ended June 30, 2024 were $580,534.
B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2024, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $4,067,625. $2,808,994 of the liability is reported in governmental activities and $1,258,631 of the liability is reported in business-type activities.
42 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 7: PENSION PLAN (CONTINUED)
all participating employers, actuarially determined. The City's proportionate share of the net pension liability for the Total
Proportion - June 30, 2022 0.03141 %
Proportion - June 30, 2023 0.03261 %
Change - increase (decrease) 0.00120%
Deferred Deferred
Outflows of Inflows of
Resources Resources
Pension contributions subsequent to measurement date $ 580,534 $ Changes of assumptions 241,030 28529
Differences between expected and actual experience 258,281 Differences between projected and actual investment earnings 601,939 Difference between the employer's contributions and proportionate share of 19,858 170,441 contributions
Change in employer's proportior 267.049
Total $ 1.968.691 $. 198,970
$580,534 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ended
June 30,
2025 $ 407,864
2026 273,117
2027 491,174
2028 17,032
43 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 7: PENSION PLAN (CONTINUED)
Actuarial Assumptions
The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.50%
Salary Increases Varies by Entry Age and Service
Investment Rate of Return 6.90% net of pension plan investment expenses; includes inflation.
Mortality (1) Derived using CaPERS membership data for all funds Post Retirement Benefit Increase Contract COLA up to 2.50% until purchasing power protectio allowance floor on purchasing power applies, 2.50% thereafter (1) The mortality table used was developed based on CaPERS' membership data for all funds. The table includes 15 years of mortality improvements using 90 percent of scale MP 2016 published by the Society of Actuaries. For more details on this table, please refer to the 2021 experience study report available on CaPERS website.
Changes in Assumptions
For the measurement period June 30, 2023, there were no changes in assumptions.
Discount Rate
The discount rate used to measure the total pension liability was 6.90 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Long-term Expected Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CaPERS took into account both short-term and long-term market return expectations. Using historical returns of all the Public Employees Retirement Funds' asset classes (which includes the agent plan and two cost-sharing plans or PERF A, B, and C funds), expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 basis points. 44 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 7: PENSION PLAN (CONTINUED)
The table below reflects long-term expected real rates of return by asset class.
Real Return
Assumed Asset Years 1 - 10
Asset Class Allocation (1.2)
Global Equity - Cap-weighted 30.0% 4.45%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage (5.0%) (0.59%)
(1) An expected inflation of 2.3% used for this period. (2) Figures are based on the 2021-22 Asset Liability Management Study.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City's proportionate share of the net pension liability for the Plan as of the measurement ate, calculated using the discount rate for the Plan, as well as what the City's proportionate share of the net pensio ability would be if it were calculated using a discount rate that is one-percentage point lower or one-percentag Discount Rate - 1% Current Discount Rate Discount Rate +1% (5.90%) (6.90%) (7.90%)
Net Pension Liability $ 6,490,148 $ 4,067,625 $ 2,081,212 Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately issued CaPERS financial reports.
NOTE 8: FUND BALANCE
GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government's fund balances more transparent. The following classifications describe the relative strength of the spending constraints:
Non-Spendable: Amounts that cannot be spent because they are either (a) not in spendable form (not expected to be converted to cash) or (b) legally or contractually required to be maintained intact.
Restricted: Amounts subject to externally enforceable legal restrictions or constrained for a specific purpose by external parties, constitutional provisions, or enabling legislation. This fund balance type is essentially the same definition as restricted net position under GASB Statement No. 34.
Committed: Amounts that can only be used for specific purposes pursuant to constraints imposed by the formal action of the City Council. Committed amounts cannot be used for any other purpose unless the government removes or changes the specified use by taking the same type of action (legislation, resolution, ordinance) it employed to previously commit those amounts. Action to constrain resources must occur prior to year-end; however, the amount can be determined in the subsequent period.
45 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 8: FUND BALANCE (CONTINUED)
not classified as non-spendable, restricted, or committed. nassigned: Residual amounts in the general fund, not classified as non-spendable, restricted, committed, o ssigned. For other governmental fund types, unassigned is only used when a deficit or negative fund balanc When a government funds outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance), a flow assumption must be made about the order in which the resources are considered to be applied. It is the City'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 As of June 30, 2024, fund balances were comprised of the following:
Non-Major Total
Development Governmenta Governmental
CDBG Streets Fund Funds
Restricted for:
Community development - $ - $ 3,573,247
Loans 495,160
provements & maintenan : 192,479 192,479
blic safe 70,248 70,248
Grants : 13,451 13,451
-
Capital projects 102,299 102,299
Unassigned 8,816,153 (1,651,454) (12,870) 7,151,829
$ 8,816,153 $ 495,160 $ 3,573,247 365.507 $ 11.598,713
Total Fund Balance
NOTE 9: DEFICIT FUND BALANCE
As of June 30, 2024, the following governmental funds had a fund balance deficit:
Fund Deficit
Streets Fund 1,651,454
Traffic Safety
These deficits were a result of expenditures incurred in advance of receipt of revenue and will be eliminated through future revenues.
46 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 10: EXCESS EXPENDITURES AND TRANSFERS OVER APPROPRIATIONS The following funds incurred expenditures and transfers in excess of appropriations in the following amounts for the year ended June 30, 2024
Excess of
Expenditures
Fund and Transfers
Development $ 87,309
Streets 396,917
Law Enforcement Grant 213,702
Police Grant 10,103
NOTE 11: RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions, and natural disasters. The City manages its risk by participating in a public entity risk pool described below and by retaining certain risks.
Golden State Risk Management Insurance Authority
The City is a member of the Golden State Risk Management Authority (GRMA), a public entity risk pool that is currently operating as a common risk management agency. GSRMA is governed by seven members of their Board of Directors consisting of representatives from their member agencies. The Board controls the operations of the risk pool, including selection of management and approval of operation budgets, independent of any influence by nember agencies. Obligations and liabilities of the risk pool are not the City's responsibilities.
GSRMA covers general liability up to $250,000 per occurrence. GSRMA purchases excess general liability coverage rom the CSAC Excess Insurance Authority (EIA) that provides a $49,750,000 limit in excess of GSRMA's $250,000 for a total limit of $50,000,000 per occurrence. The City has no deductible for general liability.
The City is a participant in the GSRMA workers' compensation risk pool, which provides $300,000 per occurrence coverage. GSRMA participates in the EIA Excess Workers' Compensation program, which provides statutory limits in excess of GRMA's $300,000 limit for workers' compensation losses and $5,000,000 per occurrence limits for employers' liability.
During the fiscal year ended June 30, 2024, the City incurred costs of $559,865 for coverage premiums including general liability, workers compensation, property, automobile, cyber, and crime bond.
There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year.
Audited financial information for GRMA for the year ended June 30, 2024 (the latest available) was as follows:
Total assets $ 35,603,249
Total liabilities 22,945,278
Net position 12,657,971
Total revenues 41,420,605
Total expenses 40,809,113
Change in net position $ 611,492
47 CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 12: COMMITMENTS AND CONTINGENCIES
A. Contractual Obligations
At June 30, 2024, the City had construction contracts outstanding of approximately $1,369,693 for the New Well and Pipeline Replacement project.
B. Contingencies
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies including the federal government. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the government expects such amounts, if any, to be immaterial.
The City is subject to various lawsuits and claims involving public liability and other actions incidental to the ordinary course of City operations. In the aggregate, those claims seek monetary damages in significant amounts, To the extent the outcome of such litigation may be determined to result in financial loss to the City, in the opinion of City management, any potential liability for these actions is adequately provided for in the basic financial statements. The NOTE 13: PRIOR PERIOD ADJUSTMENT
In 2024, the City determined the following items had been incorrectly recorded in a prior year:
1. Deferred inflows of resources related to long-term loans receivable had been incorrectly recognized as revenues:
2. Net pension liability and related deferred outflows and deferred inflows of resources were incorrectly stated;
3. Expenses were recorded in the General fund rather than the Water fund; The impact of the restatements on the net position of the government-wide financial statements as previously reported is presented below:
Governmental Business-Type
Activities Activities Total
Net Position, July 1, 2023, as previously reported $ 28,061,765 $ 17,489,869 $ 45,551,634 Adjustment associated with
Correction of deferred inflows of resources 1,290,279 1,290,279 Correction of net pension liability (333,359) (154,847) (488,206) Correction of expense 67,911 (67,911)
Total Prior Period Adjustment 1.024,831 (222,758) 802,073 Net Position, July 1, 2023, as restated $29,086,596 $ 17,267,111 $46,353,707
CITY OF WILLIAMS
NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2024
NOTE 13: PRIOR PERIOD ADJUSTMENT (CONTINUED)
The impact of the restatement on fund balance on the governmental fund financial statements as previously reported is presented below:
Total
Governmental
General Fund CDBG Funds
Fund balance, July 1, 2023, as previously reported $ 8,106,301 1,574,474 $ 12,541,010 Adjustment associated with:
Correction of deferred inflows of resources 67.911 (812,795) (812,795) Correction of expense 67.911
Total Prior Period Adjustment 67.911 (812,795) (744.884) Fund balance, July 1, 2023, as restated $ 8,174.212 $. _ 761,679 $ 11.796.126 The impact of the restatement on fund balance on the proprietary fund financial statements as previously reported is presented below:
Water Sewer Total
Net Position, July 1, 2023, as previously reported $ 7,775,591 $ 9,714,278 $ 17,489,869 Adjustment associated with:
Correction of net pension liability (50,318) (104,529) (154,847) Correction of expense (67.911) (67.911)
Total Prior Period Adjustment (118,229) (104,529) (222,758) Net Position, July 1, 2023, as restated $ - 7,657,362 $ -9.609,749 $ 17,267,111 NOTE 14: SUBSEQUENT EVENTS
Matinema tee avaluat or subace. anage no nas dier 2 a sus equeen reacher naste. 49 REQUIRED SUPPLEMENTARY INFORMATION
CITY OF WILLIAMS
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Budgeted Amounts
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Property taxes $ 1,438,521 $ 1,478,004 $ 39,483
Sales taxes 1,928,236 1,676,177 (252,059)
Local taxes 1,036,939 964,599 (72,340)
Motor vehicle in lieu 593,934 593,934 618,711 24,777
Transient occupancy 561,000 561,000 501,694 (59,306)
Franchise fees 291,276 291,276 305,779 14,503
Business license fees 42,840 42,840 63,857 21,017
Charges for service 211,682 211,682 204,689 (6,993)
Intergovernmental 49,910 49,910
Interest 15,300 15,300 341,549 326,249
Other revenues 5,100 5,100 35.128 30,028
Total Revenues 6,124.828 6,124.828 6,240,097 115,269
EXPENDITURES
Current operations:
General government 766,135 766,135 615,512 150,623
Public safety 3,004,982 3,004,982 2,633,958 371,024
Public works 898,203 898,203 936,543 (38,340)
Community development 379,931 379,931 379,597 334'
Parks and recreation 489,395 489,395 487,487 1,908
Capital outlay 28,000 28,000 29,380 (1,380)
Total Expenditures 5.566,646 5.566,646 5,082,477 484,169 Excess (deficiency) of revenues over
expenditures 558,182 558,182 1,157.620 599,438
OTHER FINANCING SOURCES (USES)
Transfers out _ (553,132) (553,132) (515,679) 37,453
Total other financing sources (uses) (553,132) (553,132) (515,679) 37,453 Net change in fund balance 5.050 $- 5.050 641.941 $ 636.891 Fund balance - July 1, 2023 8,106,301
Prior period restatement 67,911
Fund balance - July 1, 2023, restated 8,174.212
Fund balance - June 30, 2024 $ 8.816,153
50 CITY OF WILLIAMS
CDBG
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Budgeted Amounts
Final Budget
Actual Positive
Original Amounts (Negative)
REVENUES
Interest $- 70,000 $_ 70,000 $_ 33,116 $_ (36,884)
Total Revenues 70,000 70,000 33.116 (36,884)
EXPENDITURES
Current operations:
Community development 570,000 570,000 299.635 270,365
Total Expenditures 570,000 570,000 299,635 270,365
Net change in fund balance $_ (500,000) $. (500,000) (266,519) $_ 233,481 Fund balance - July 1, 202: 1,574,474
Prior period restatement (812,795)
Fund balance - July 1, 2023, restated 761,679
Fund balance - June 30, 2024 $. 495,160
51 CITY OF WILLIAMS
DEVELOPMENT FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Budgeted Amounts
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for service $ 50,000 $ 50,000 $ 86,469 $ 36,469 Interest 133.647 133.647
Total Revenues 50,000 50,000 220,116 170.116
EXPENDITURES
Current operations:
General government 50,000 50,000 50,000
Public safety 48,134 (48,134)
Parks and recreation 89,175 (89,175)
Total Expenditures 50,000 50,000 137,309 (87,309)
Net change in fund balance $. 82,807 $ 82,807
Fund balance - July 1, 2023 3.490,440
Fund balance - June 30, 2024 $ 3.573.247
52 CITY OF WILLIAMS
STREETS FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Budgeted Amounts
Variance with
Final Budget
Actual Positive
Original Amounts (Negative)
REVENUES
Sales taxes 148,873 148,873 153,339 $ 4,466
Local taxes 134,800 134,800 386,346 251,546
Total Revenues 283.673 283,673 539,685 256.012
EXPENDITURES
Current operations:
Public works 151,448 707.254 1,104,171 (396,917)
Total Expenditures 151,448 707,254 1,104,171 (396,917)
Net change in fund balance $_ 132,225 (423.581) (564,486) $. (140,905) Fund balance (deficit) - July 1, 2023 (1,086,968)
Fund balance (deficit) - June 30, 2024 (1,651,454)
53 CITY OF WILLIAMS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY As of June 30, 2024
Last 10 Years*
Measurement Period
2023 2022 2021 2020 2019
Proportion of the net pension
liability 0.03261 % 0.03141 % 0.02508 % 0.02706 % 0.02547 % Proportionate share of the net
pension liability $ 4,067,625 $ 3,627,898 $ 1,356,303 $ 2,944,783 $ 2,609,670 Covered payroll $ 3,373,186 $ 3,084,891 $ 2,713,771 $ 2,664,639 $ 2,472,304 Proportionate share of the net
pension liability as a
percentage of covered payroll 120.59 % 117.60% 49.98 % 110.51% 105.56% Plan fiduciary net position as a
percentage of the total pension
76.21 % 76.68 % 88.29 % 75.10 % 75.30 %
Notes to Schedule:
Changes in assumptions - In 2022, the accounting discount rate was reduced from 7.15 percent to 6.90 percent. Ir 2021, 2020 and 2019, there were no changes in assumptions. In 2018, assumptions for individual salary increases plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate. 54 CITY OF WILLIAMS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (CONTINUED) As of June 30, 2024
Last 10 Years*
Measurement Period
2018 2017 2016 2015 2014
Proportion of the net pension
liability 0.02426 % 0.02367% 0.00131 % 0.00200 % 0.00200% Proportionate share of the ne
ension liabilit $ 2,337,926 $ 2,347,830 1,975,856 •$ 1,621,237 $ 1,241,498 Covered payroll 2,343,484 $ 2,241,833 1,765,251 $ 1,795,574 $ 2,063,434 Proportionate share of the net
pension liability as a
percentage of covered payroll 99.76 % 104.73% 111.93% 90.29 % 60.17 % Plan fiduciary net position as a
percentage of the total pension
liability 73.69 % 73.29 % 74.06 % 78.40 % 79.82 %
55 CITY OF WILLIAMS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
Prepared for the City's Miscellaneous and Safety Cost Sharing Defined Benefit Pension Plan As of June 30, 2024
Last 10 Years*
Fiscal Year-End
2024 2023 2022 2021 2020
Contractually required contribution
(actuarially determined) $ 580,534 $ 564,351 $ 510,998 $ 454,857 $ 549,281 Contributions in relation to
the actuarially determined
contributions 580,534 564,351 510.998 454,857 549,281
Contribution deficiency (excess) $.
Covered payroll 3,683,199 3,373,186 $ 3,084,891 $ 2,713,771 $ 2,664,639 Contributions as a percentage of
covered payroll 15.76 % 16.73% 16.56 % 16.76% 20.61%
56 CITY OF WILLIAMS
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS (CONTINUED)
Prepared for the City's Miscellaneous and Safety Cost Sharing Defined Benefit Pension Plan As of June 30, 2024
Last 10 Years*
Fiscal Year-End
2019 2018 2017 2016 2015
Contractually required contribution
(actuarially determined) 488,958 $ 426,409 $ 451,245 $ 484,435 $ 333,020 Contributions in relation to
the actuarially determined
contributions 488,958 426,409 451,245 484,435 333,020
Contribution deficiency (excess) $.
Covered payroll $ 2,472,304 $ 2,343,484 $ 2,241,833 $ 1,765,251 $ 1,795,574 Contributions as a percentage of
covered payroll 19.78% 18.20% 20.13% 27.44 % 18.55%
57 CITY OF WILLIAMS
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION ON
BUDGETARY ACCOUNTING AND CONTROL
FOR THE YEAR ENDED JUNE 30, 2024
NOTE A: BUDGETARY BASIS OF ACCOUNTING
The following procedures are performed by the City in establishing the budgetary data reflected in the financial statements:
(2) Public hearings, when required, are conducted at City Hall to obtain taxpayer comments. (3) Prior to June 30, the budget is legally enacted through passage of a formal resolution. t) Any revisions which alter the total expenditures of any fund must be approved by the City Council. Budgete nounts are as originally adopted or as subsequently revised by the City Council. All unused appropriations fi budgeted amounts lapse at the end of the year.
Annual appropriated budgets are not adopted for certain funds. For the fiscal year ended June 30, 2024, the following nonmajor special revenue and nonmajor capital projects fund did not have annual appropriated budgets:
Gaming Grant
Police Grant
Capital Projects
The City does not use encumbrance accounting under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation.
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS
AND SCHEDULES
NON-MAJOR GOVERNMENTAL FUNDS
The following funds are reported in total on the Governmental Fund Financial Statements under the column Other Governmental Funds.
SPECIAL REVENUE FUNDS
Traffic Safety Fund
This fund is used to account for parking violation revenues and the expenditures that are legally restricted to the enforcement of parking codes.
Lighting & Landscaping Fund
This fund is used to account for assessments on properties that are specifically restricted to the maintenance of Cit arks and street lighting
Recycling Grant Fund
This fund is used to account for revenues and expenditures of the recycling grant:
Law Enforcement Grant Fund
This fund is used to account for revenues and expenditures of the State of California Funded Supplemental Law Enforcement Services grant.
Gaming Grant Fund
This fund is used to account for revenues and expenditures of the gaming grant.
Police Grant Fund
This fund is used to account for revenues and expenditures of the police grant.
CAPITAL PROJECTS FUNDS
Capital Projects Fund
his fund is used for expenditures for replacement and renovation of existing infrastructure, and renovation ar uilding of new city facilities. The revenues for this fund are generated from operations over expenditures for thos operations.
59 CITY OF WILLIAMS
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS
JUNE 30, 2024
Special Revenue Funds
Law
Lighting & Recycling Enforcement
Traffic Safety Landscaping Grant Grant
ASSETS
Cash and investments $ - $ 181,688 $ - $ 76,301
Receivables:
Accounts 12.716
-
Total Assets $, 194.404 $ 76,301
LIABILITIES
Accounts payable and accrued liabilities : - S 1,925 $ 10,950 Due to other funds 12,870
Total Liabilities - 12,870 1,925 10.950
FUND BALANCES (DEFICITS):
Restricted 192,479 : 65,351
Unassigned (12,870)
-
Total fund balances (deficits) (12,870) 192,479 65.351
-
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(Deficits) $ 194.404 $, 76,301
CITY OF WILLIAMS
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEETS (CONTINUED)
JUNE 30, 2024
Special Revenue Funds Capital Projects
Non-major
Governmental
Gaming Grant Police Grant Capital Projects Funds
ASSETS
Cash and investments $ 13,451 $ 4,897 $ 102,299 $ 378,636 Receivables:
Accounts 12,716
-
Total Assets 13.451 $ 4,897 $. 102.299 $. 391.352
LIABILITIES
Accounts payable and accrued liabilities $ - $ 12,875
Due to other funds 12,870
Total Liabilities - 25,745
FUND BALANCES (DEFICITS):
Restricted 13,451 4,897 102,299 378,477
Unassigned - (12,870)
Total fund balances (deficits) - 13.451 4,897 102,299 365,607 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(Deficits) 13.451 $ 4,897 $. 102,299 $. 391,352
CITY OF WILLIAMS
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2024
Special Revenue Funds
Law
Lighting & Recycling Enforcement
Traffic Safety Landscaping Grant Grant
REVENUES
Property taxes $ 14,4308 126,582 $ : s :
Charges for services :
ntergovernmental 5,000 186,159
nterest 6.364 6.364
Total Revenues 14,430 132.946 5,000 192,523
EXPENDITURES
Current operations:
Public safety 102,197 100,000
Public works : :
Parks and recreation
Capital outlay 213,702
Total Expenditures 102,197 5,000 313,702
Excess (deficiency) of revenues over expenditures 14,430 30,749 (121,179)
OTHER FINANCING SOURCES (USES)
Transfers out (11,417)
Total Other Financing Sources (Uses) (11,417)
Net change in fund balance 14,430 19,332 - (121,179)
Fund balance (deficit) - July 1, 2023 (27,300) 173,147 186,530 Fund balance (deficit) - June 30, 2024 $ (12,870) $_ 192,479 $ 65,351 62 CITY OF WILLIAMS
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2024
Special Revenue Funds Capital Projects
Total
Non-major
Governmental
Gaming Grant Police Grant Capital Projects Funds
REVENUES
Property taxes $ 126,582
Charges for services 14,430
Intereovernmental 191,159
6.364 19.092
Total Revenues 6.364 351,263
EXPENDITURES
Current operations:
Public safety 10,103 110,103
Public works : : 102,197
Parks and recreation 5,000
Capital outlay 213,702
Total Expenditures 10,103 431,002
Excess (deficiency) of revenues over expenditures (10,103) 6,364 (79,739)
OTHER FINANCING SOURCES (USES)
Transfers out (11,417)
Total Other Financing Sources (Uses) (11.417)
Net change in fund balance - (10,103) 6,364 (91,156)
Fund balance (deficit) - July 1, 2023 13,451 15,000 95,935 456,763 Fund balance (deficit) - June 30, 2024 13.451 4,897 102,299 365,607 63 CITY OF WILLIAMS
TRAFFIC SAFETY FUND - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Budgeted Amounts
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 34,000 $- 34,000 $- 14,430 $- (19,570) Total Revenues 34,000 34,000 14,430 (19,570)
EXPENDITURES
Current operations:
Public works 34,000 34,000 34,000
-
Total Expenditures 34,000 34,000 34,000
Net change in fund balance $. 14,430 $ 14,430
Fund balance (deficit) - July 1, 2023 (27,300)
Fund balance (deficit) - June 30, 2024 $_ (12,870)
64 LIGHTING & LANDSCAPONG - SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Budgeted Amounts
Variance with
Final Budget
Actual Positive
- Original Final Amounts (Negative)
REVENUES
Property taxes 123,833 $ 123,833 $ 126,582 $ 2,749
Interest 6,364 6,364
-
Total Revenues - 123,833 123,833 132,946 9,113
EXPENDITURES
Current operations:
Public works - 112,416 112.416 102,197 10.219
Total Expenditures 112,416 112,416 102,197 10,219
Excess (deficiency) of revenues over
expenditures - 11.417 11.417 30,749 19.332
OTHER FINANCING SOURCES (USES)
Transfers out - (11,417) (11,417) (11,417)
Total other financing sources (uses) - (11,417) (11,417) (11,417) Net change in fund balance 19,332 $- 19.332
Fund balance - July 1, 2023 173.147
Fund balance - June 30, 2024 _ 192,479
65 CITY OF WILLIAMS
RECYCLING GRANT - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2024 BUDGET AND ACTUAL
Budgeted Amounts
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental 5.000 $. 5.000 5,000 $
Total Revenues 5,000 5,000 5,000
EXPENDITURES
Current operations:
Parks and recreation 5,000 5,000 5,000
Total Expenditures 5,000 5.000 5,000
Net change in fund balance $ - $
Fund balance - July 1, 2023
Fund balance - June 30, 2024 $
66 CITY OF WILLIAMS
LAW ENFORCEMENT GRANT - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Budgeted Amounts
Variance with
Final Budget
Actual Positive
Original Amounts (Negative)
REVENUES
Intergovernmental $ 100,000 100,000 $ 186,159 $ 86,159
Use of money and property - 6,364 6.364
Total Revenues - 100,000 100,000 192.523 92,523
EXPENDITURES
Current operations:
Public safety 100,000 100,000 100,000
Capital outlay - 213.702 (213.702)
Total Expenditures - 100,000 100.000 313.702 (213,702)
Net change in fund balance $, (121,179) $ (121,179)
Fund balance - July 1, 2023 186,530
Fund balance - June 30, 2024 65.351
67 CITY OF WILLIAMS
POLICE GRANT - NONMAJOR SPECIAL REVENUE FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Budgeted Amounts
Variance with
Final Budget
Actual Positive
Original Amounts (Negative)
REVENUES
Total Revenues $_ $_
EXPENDITURES
Current operations:
Public safety 10,103 (10,103)
Total Expenditures 10,103 (10,103)
Net change in fund balance $ (10,103) $. (10,103)
Fund balance - July 1, 2023 15,000
Fund balance - June 30, 2024 $ 4,897
68 CITY OF WILLIAMS
CAPITAL PROJECTS - NONMAJOR CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
- Budgeted Amounts
Variance with
Final Budget
Actual Positive
Original Amounts (Negative)
REVENUES
Use of money and property $- = $. 6.364 $- 6,364
Total Revenues - 6.364 6,364
EXPENDITURES
Total Expenditures
Net change in fund balance $. 6,364 5. 6.364
Fund balance - July 1, 2023 95,935
Fund balance - June 30, 2024 $ 102,299
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments on a cost-reimbursement basis. Internal funds used at the City are listed below:
Vehicle Internal Service
This fund is used to account for the City's vehicle maintenance and replacement program which provides services to other departments on a cost reimbursement basis.
CaPERS Internal Service
This fund is used to account for funds set aside to pay the City's CaPERS liability.
Insurance Internal Service
This fund is used to account for the City's insurance program which provides services to other departments on a cost reimbursement basis.
Infrastructure Project Internal Service
This fund is used to account for the City's infrastructure maintenance program which provides services to other departments on a cost reimbursement basis.
70 CITY OF WILLIAMS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2024
Vehicle CaPERS Insurance Infrastructure Total
ASSETS
Cash and investments 119,151 $ 339,765 $ 728,620 $ 516,926 $ 1,704,462 Receivables:
Loans 38.674 38,674
Total Assets 119.151 339,765 767,294 516,926 1.743,136
LIABILITIES
Accounts payable 28,103 28,103
Total Liabilities 28,103 28,103
NET POSITION
Unrestricted 339.765 739,191 516,926 1.715,033
11915 3285 32221 • 516928 $ 1715033
Total Net Position $ 119,151 $
71 CITY OF WILLIAMS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION FOR THE YEAR ENDED JUNE 30, 2024
Vehicle CalPERS Insurance Infrastructure Total
OPERATING REVENUES
Other revenues 209 97.207 : $. $ 97.416
Total Operating Revenues 209 97,207 97.416
OPERATING EXPENSES
General administration 559.865 559,865
Total Operating Expenses 559,865 559,865
Operating Income (Loss) 209 (462,658) (462,449)
NON-OPERATING REVENUE
Interest income 6,364 12,728 26,661 12,728 58,481
Total Non-Operating Revenue 6.364 12,728 26.661 12,728 58,481
TRANSFERS
Transfers In 50.000 46.050 570,767 100,000 766,817
Change in Net Position 56,573 58,778 134,770 112,728 362,849 Net Position - July 1, 2023 62,578 280,987 604.421 404,198 1,352,184 Net Position - June 30, 2024 $ 119.151 - 339,765 739,191 $_ 516,926 $ 1,715.033 72 CITY OF WILLIAMS
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
JUNE 30, 2024
Vehicle CalPERS Insurance Infrastructure Total
CASH FLOWS FROM OPERATING
ACTIVITIES
Cash received from customers $ 209 $ 99,936 $ - $ 100,145 Cash paid to suppliers (625,565) (625,565)
Net Cash Provided by (Used for)
Operating Activities 209 (525,629) (525,420)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers from other funds 50,000 46.050 570,767 100,000 766,817 Net Cash Provided by Noncapital
Financing Activities 50,000 46,050 570,767 100,000 766.817
CASH FLOWS FROM INVESTING
ACTIVITIES
Interest income 6,364 12,728 26,661 12,728 58,481
Net Cash Provided by Investing
Activities 6.364 12,728 26.661 12,728 58,481
Net Increase in Cash and
Investments 56,573 58,778 71,799 112,728 299,878
Cash and Investments - July 1, 2023 62,578 280.987 656.821 404,198 1,404.584 Cash and Investments - June 30, 2024 $ 119,151 339.765 $ 728.620 $ 516.926 $ 1.704,462
RECONCILIATION OF OPERATING
INCOME (LOSS) TO NET CASH
PROVIDED BY (USED FOR)
OPERATING ACTIVITIES:
Operating Income (Loss) $ 209 $ - $ (462,658) $ - $ (462,449) Adjustments to reconcile operating
income (loss) to net cash provided by
(used for) operating activities:
Changes in assets and liabilities:
(Increase) decrease in:
Loans receivable - - 2,729 - 2,729
Increase (decrease) in:
Accounts payable (65,700) (65,700)
Net Cash Provided by (Used for)
Operating Activities 209 $ _ (525.629) $ (525.420)
73 OTHER REPORT
SMUN
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the City Council of
the City of Williams
Williams, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Williams (the 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 Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control as a basis for designing audit procedures that circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. We identified certain deficiencies in internal control, described in the accompanying schedule of current year findings as items 2024-001 - 2024-003 that we consider to be significant deficiencies.
Report on Compliance and Other Matters
providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
City's Responses to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City's responses to the findings identified in our audit and described in the accompanying schedule of current year findings. The City's responses were not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
MUN CPAs, LLP | 1760 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 | www.muncpas.com GLENDALE • ROSEVILLE • SACRAMENTO • ZEPHYR COVE • KAUAI Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for an other purpose.
AUN CPAS, LU
acramento, Calitorn
ctober 28. 202
CITY OF WILLIAMS
SCHEDULE OF CURRENT YEAR FINDINGS
JUNE 30, 2024
Finding 2024-001 Loans Receivable (Significant Deficiency) Criteria
In accordance with the modified accrual basis of accounting, long-term receivables should be offset in the governmental fund financial statements by deferred inflows of resources to indicate they do not represent current financial resources. In the governmental fund statements, long-term loans are treated as expenditures in the year advances and as revenues in the year repayment is measurable and available.
Condition
Errors were identified in the prior year recorded amounts of loans receivable, deferred outflows of resources, and deferred inflows of resources.
Cause
le City applied an accounting treatment based on prior auditor guidance that did not align with the modified accru asis of accounting for long-term receivables in governmental func Effect
Adjustments were required to properly reflect loans receivables and deferred inflows of resources.
Recommendation
We recommend the City continue to ensure all loan activity is recorded in accordance with the modified accrual basis of accounting in the governmental fund statements.
Views of Responsible Officials
The City concurs with the revised accounting treatment. The prior presentation reflected previous auditor direction Moving forward, the City will ensure to account for deferred inflows when accounting for loans receivable 76 CITY OF WILLIAMS
SCHEDULE OF CURRENT YEAR FINDINGS (CONTINUED)
JUNE 30, 2024
Finding 2024-002 Grants and Taxes (Significant Deficiency) Criteria
GASB Statement No. 33 requires that governmental entities recognize receivables and revenues from nonexchange transactions, such as grants and taxes, when all applicable eligibility requirements have been met and the resources Condition
Certain grant and tax receivables along with associated revenues, were not recorded at year-end.
Cause
This appears to have been an oversight of the individual items during the accrual process.
Grant and tax receivables and related revenues were understated by $965,256, consisting of a Water enterprise grant receivable of $917,446 and a tax receivable of $47,810.
Recommendation
le recommend the City continue to review all potential receivables at year-end to ensure that all earned ar easurable revenues are properly recorded under the appropriate basis of accounting for each fund typ Views of Responsible Officials
The City concurs with this finding and has recorded the necessary adjustments to properly reflect year end receivables and revenues. The omission was the result of an oversight rather than a misunderstanding of accounting requirements, as evidenced by the City's proper treatment of other receivables in both governmental and enterprise funds. The Water Enterprise grant receivable of $917,446 was received more than 100 days after year end and should have been fully accrued under the accrual basis of accounting. Similarly, a tax receivable has been properly recorded. The City has implemented an additional year end review procedure to verify that all receivables and related revenues are accurately captured going forward. 77 CITY OF WILLIAMS
SCHEDULE OF CURRENT YEAR FINDINGS (CONTINUED)
JUNE 30, 2024
Finding 2024-003 Net Pension Liability Calculation (Significant Deficiency) Criteria
employer allocation percentages.
Condition
During our review of the net pension liability, we noted:
1. The City misclassified portions of their CaPERS contributions as personnel expense versus retirement expense.
This misclassification resulted in an incorrect calculation of deferred outflows of resources related to the net pension liability in prior and current year.
As part of the CaPERS cost-sharing multiple employer defined benefit plan, each employer is provided with audited allocation factors of the total pool's total pension liability and fiduciary net position. These allocation actors are used to determine an employer's proportionate share of the net pension liability. The City mistaken!! used the incorrect employer allocations in the calculation of the net pension liability for the prior and curren Cause
The misclassification of certain CaPERS contributions resulted in the use of an incorrect amount applied to the calculation of deferred outflows of resources related to the net pension liability.
The City used the audited employer allocation factors from an incorrect measurement period report.
Effect
Prior period adjustments were required to properly reflect the balances of the net pension liability (overstatement of approximately $134,000), deferred outflows of resources (overstatement of approximately $493,000) and deferred inflows of resources (understatement of approximately $129,000) related to pension.
Recommendation
We recommend the City reconcile all CaPERS contributions to the general ledger on a monthly basis and ensure proper classification of CaPERS contributions. We recommend the City ensure they are using the correct measurement period report in obtaining the employer allocation factors to be used in the net pension liability calculation.
Views of Responsible Officials
The City concurs with the recommendation. The City has implemented additional year end review procedures including an annual reconciliation of total CaPERS contributions, to ensure all pension related expenses are properly classified going forward
78 CITY OF WILLIAMS
SCHEDULE OF PRIOR YEAR FINDINGS
JUNE 30, 2024
None
79 CITY OF WILLIAMS DATE: February 18, 2026
City Council ITEM #: 6.
Agenda Report CATEGORY: New Business
SUBJECT: Adopt Resolution 26-03, a Resolution of the City Council of the City of Williams, authorizing the City Manager to execute and submit grant and loan applications and related documents through the State Water Resources Control Board Clean Water State Revolving Fund.
BACKGROUND
On March 21, 2018, the City Council adopted Resolution No. 18-13 authorizing the City Administrator to execute and submit financial assistance applications and related documents for funding through the State Water Resources Control Board Clean Water State Revolving Fund (CWSRF) for wastewater collection system improvements.
Since that time, the City has transitioned from the title of City Administrator to City Manager.
The Existing resolution references the former title and should be updated to reflect the current administrative structure.
DISCUSSION
Updating the resolution ensures consistency with the City's current administrative structure, clear authorization for the City Manager to execute applications and agreements, and compliance with the State Water Resources Control Board requirements for authorized representatives.
This amendment does not change the scope of the authority or project intent; it only updates the authorized position title.
FISCAL IMPACT
There is no financial impact as this action is administrative only and does not create any new financial obligations.
RECOMMENDATION
Adopt Resolution 26-03, a Resolution of the City Council of the City of Williams, authorizing hruity Manage at cresured outri Board Clean later Slate Revolving and documents Prepared and Submitted by: Mariana Pineda, City Clerk
Attachment: (1) Resolution 26-03
RESOLUTION NO. 26-03
A RESOLUTION OF THE CITY OF WILLIAMS CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO EXECUTE AND SUBMIT GRANT AND
LOAN APPLICATIONS AND RELATED DOCUMENTS THROUGH THE STATE
WATER RESOURCES CONTROL BOARD CLEAN WATER STATE REVOLVING FUND
WHEREAS, on March 21, 2018, the City Council of the City of Williams adopted Resolution No. 18-13, authorizing the Administrator execute and submit grant and loan applications and related documents through the State Water Resources Control Board Clean Water State Revolving Fund; and
WHEREAS, subsequent to the adoption of Resolution No. 18-13, the City Council of the City of Williams formally changed the executive title of City Administrator to City Manager, without altering the underlying authority of the position; and
WHEREAS, Christopher Miller is currently serving as the Acting City Manager of the City of Williams; and
WHEREAS, the City of Williams intends to apply for grants and loans through the State Water Resources Control Board Clean Water State Revolving Fund for the planning, design, and construction of wastewater system improvements; and,
WHEREAS, the City desires to designate an authorized representative to execute and submit all necessary applications, agreements, and related documents for such funding;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WILLIAMS AS FOLLOWS:
The City Manager (the "Authorized Representative") or designee is hereby authorized and directed to sign and file, for and on behalf of the City of Williams, applications for financial assistance from the State Water Resources Control Board for the planning, design, and construction of Wastewater Collection System Improvement Projects.
The City Manager, or his/her designee, is authorized to provide all assurances, certifications, and commitments required for the financial assistance application, including executing a financial assistance agreement from the State Water Resources Control Board and any amendments or changes thereto.
The City Manager, or his/her designee, is further authorized to represent the City of Williams in carrying out the City of Williams' responsibilities under any financing agreement, including certifying disbursement requests and ensuring compliance on behalf of the City of Williams with applicable state and federal laws.
CERTIFICATION
I do hereby certify that the foregoing resolution was duly adopted by the City Council of the City of Williams at their regular City Council Meeting held on February 18, 2026.
PASSED AND ADOPTED:
AYES:
NOES:
ABSTAIN:
ABSENT:
Katherine Dunlap, Mayor
ATTEST:
Mariana Pineda, City Clerk
CITY OF WILLIAMS
DATE: February 18, 2026
City Council ITEM #: 7.
Agenda Report CATEGORY: New Business
SUBJECT: RESOLUTION 26-04 RECOGNIZING "CITY MANAGER" AND "CITY ADMINISTRATOR" AS INTERCHANGEABLE TITLES FOR PURPOSES OF
ADMINISTRATION, SIGNATURE AUTHORITY, AND OFFICIAL CITY
BUSINESS
BACKGROUND:
The City Council has expressed interest in updating the title of the City's chief administrative officer from City Administrator to City Manager to better reflect the leadership role and responsibilities associated with the position. This change is consistent with titles used by a other city municipalities.
DISCUSSION:
The City currently has numerous official documents including grant agreements, resolutions, contracts and policy manuals that confer signature authority and administrative responsibilities specifically to the City Administrator. Changing the title outright would require amendments to the Municipal Code, Personnel Manual, Memorandums of Understanding (MOU's) and numerous other City policies and procedures, which would be time consuming and could introduce inconsistencies across documents and legal instruments.
To maintain compliance with existing agreements while adopting the preferred title, staff recommends designating the position as "City Manager / City Administrator".
This dual-title approach:
• Preserves all existing authority and compliance requirements under the title "City Administrator".
• Allows the City to publicly use "City Manager" in hiring materials and communication to align with current professional standards.
• Avoids the need for costly and time intensive updates to codes, MOUs and manuals. • Provides immediate clarity for both internal operations and external agencies.
This approach is straightforward, efficient and fully compliant with existing legal and grant- related obligations.
RECOMMENDATION:
Staff recommends adoption of Resolution 26-04 RECOGNIZING "CITY MANAGER" AND "CITY ADMINISTRATOR" ÁS INTERCHANGEABLE TITLES FOR PURPOSES OF ADMINISTRATION, SIGNATURE AUTHORITY, AND OFFICIAL CITY BUSINESS. This ensures continuity in signature authority, avoids the need to revise existing codes and documents, and modernizes the City's public presentation.
Prepared and Submitted by: Rex J. Greenbaum, Finance Director Reviewed by: Mariana Pineda, City Clerk
Attachments (1): Resolution 26-04 RECOGNIZING "CITY MANAGER" AND "CITY ADMINISTRATOR" AS INTERCHANGEABLE TITLES FOR PURPOSES OF
ADMINISTRATION, SIGNATURE AUTHORITY, AND OFFICIAL CITY
BUSINESS
RESOLUTION NO. 26-04
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILLIAMS RECOGNIZING "CITY MANAGER" AND "CITY ADMINISTRATOR" AS INTERCHANGEABLE
TITLES FOR PURPOSES OF ADMINISTRATION, SIGNATURE AUTHORITY, AND
OFFICIAL CITY BUSINESS
WHEREAS, the City Council of the City of Williams has historically designated its chief administrative officer as the City Administrator; and
WHEREAS, the City Council desires to update the title to City Manager to reflect contemporary municipal governance practices and align with similar cities in California; and WHEREAS, the City currently maintains active grant agreements, contracts, and legal documents that expressly confer administrative and signature authority to the City Administrator; and WHEREAS, to ensure continuity of administrative functions and maintain compliance with all existing legal, financial, and contractual obligations, it is necessary to recognize both titles as interchangeable for all official purposes;
NOW, THEREFORE, the City Council of the City of Williams DOES HEREBY RESOLVE, DETERMINE, AND ORDER as follows:
1. The titles "City Manager" and "City Administrator" shall be deemed interchangeable for all purposes related to City administration, signature authority, contracts, grants, and any other official City matters.
2. Any references to the City Administrator in existing or future agreements, resolutions, ordinances, or documents shall be construed to include the City Manager, and vice versa.
3. The City Clerk and City Attorney are hereby authorized and directed to make minor wording adjustments as necessary in City documents to ensure consistency with this resolution.
4. This resolution shall take effect immediately upon adoption.
Resolution 26-04
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Williams on this 18"h day of February 2026 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
APPROVED:
Katherine Dunlap, Mayor
ATTEST: APPROVED AS TO FORM:
Mariana Pineda, City Clerk Andreas Booher, City Attorney Resolution 26-04
CITY OF WILLIAMS DATE: February 18, 2026
City Council ITEM: 8.
Agenda Report CATEGORY: New Business
SUBJECT: Proposed Fifth Amendment to Joint Powers Agreement executed January 10, 2006, for the purpose of maintaining a public transportation system within Colusa County.
BACKGROUND
On January 10, 2006, the county of Colusa (JPA) and the Cities of Colusa and Williams, executed a Joint Powers Agreement to provide a public transportation system within the county of Colusa.
On April 19, 2011, the County and Cities executed a First Amendment (C11- 064) to the JPA
1. The First Amendment modified Section 6. a. to change the method of termination to require written notice of termination.
2. The First Amendment modified Section 6. c. to extend the termination date of the JPA from April 22, 2011, to April 22, 2016; and
3. The First Amendment deleted Section 6. d. of the JPA in its entirety.
On January 1, 2012, the County and Cites executed a Second Amendment (C12- 002) to the JPA repealing Section 3 of the JPA in its entirety and replacing it with a new Section 3.
On November 17, 2015, the County and the Cities executed a Third Amendment (C15-183) to extend the termination date to April 22, 2021.
On March 30, 2021, the County and the Cities executed a Fourth Amendment (C21-045) to extend the termination date through April 22, 2021.
DISCUSSION
The parties now desire to change the termination date of the JPA and are proposing the following:
Amendment
Section 6.c. of the JPA, Termination, is amended to change the termination date of the JPA from April 22, 2026, to April 22, 2031.
FISCAL IMPACT
None
RECOMMENDATION
Staff recommends council vote to approve the amendment "Section 6.c. of the JPA" to change the Termination date from April 22, 2026, to April 22, 2031.
Prepared and Submitted by: Acting City Manager Chris Miller Attachment: (1) Fifth Amendment to Joint Powers Agreement Fifth Amendment to Joint Powers Agreement between the County of Colusa, he City of Colusa, and the City of Williams Providing
ublic Transportation System within the County of Colus
This Fifth Amendment to the Joint Powers Agreement Providing a Public Transportation System within the county of Colusa (JPA) is between the County of Colusa, a political subdivision of the State of California (County), and the Cities of Colusa and Williams, both municipal Background
On January 10, 2006, the County and Cities executed the JPA for the purpose of maintaining a public transportation system within the County and the Cities; On April 19, 2011, the County and Cities executed a First Amendment (C11- 064) to the JPA
1. The First Amendment modified Section 6. a. to change the method of termination to require written notice of termination.
2. The First Amendment modified Section 6. c. to extend the termination date of the JPA from April 22, 2011, to April 22, 2016; and
3. The First Amendment deleted Section 6. d. of the JPA in its entirety.
On January 1, 2012, the County and Cites executed a Second Amendment (C12- 002) to the JPA repealing Section 3 of the JPA in its entirety, and replacing it with a new Section 3.
On November 17, 2015, the County and the Cities executed a Third Amendment (C15- 183) to extend the termination date to April 22, 2021.
On March 30, 2021, the County and the Cities executed a Fourth Amendment (C21-045) to extend the termination date through April 22, 2021.
The parties now desire to change the termination date of the JPA.
Amendment
Section 6.c. of the JPA, Termination, is amended to change the termination date of the JPA from April 22, 2026, to April 22, 2031.
Construction
All other terms and conditions of the JPA shall remain in full force and effect.
This Fifth Amendment is executed in Colusa, California on this 24th day of March 2026.
SIGNATURES FOLLOW ON PAGE 2
Fifth Amendment to Public Transportation System JPA
COUNTY OF COLUSA CITY OF COLUSA
J. Merced Corona, Chair Denise Conrado, Mayor
ATTEST: Joshua Pack, Clerk to ATTEST:
the Board of Supervisors
By
Patricia Rodriguez, Deputy Shelley Kittle, City Clerk
APPROVED AS TO FORM CITY OF WILLIAMS
Jennifer K. Sutton, Kate Dunlap, Mayor
Senior Deputy County Counsel
ATTEST:
Mariana Pineda, City Clerk
Fifth Amendment to Public Transportation System JPA
CITY OF WILLIAMS DATE: February 18, 2026
City Council ITEM: 9.
Agenda Report CATEGORY: New Business
SUBJECT: AUTHORIZE CITY STAFF TO PROCEED IN COLLABORATION WITH
TRI COUNTIES COMMUNITY ACTION PARTNERSHIP (TCCAP) FOR THE EXTREME
HEAT AND COMMUNITY RESILIENCE PROGRAM
BACKGROUND
The Extreme Heat and Community Resilience Program is a program within the Governor's Office of Land Use and Climate Innovation (LCI). The Program supports planning and implementation projects to protect California communities most vulnerable from the impacts of extreme heat. Round 2 of the Program focuses on funding the planning and building of infrastructure to address extreme heat through two project types:
Early Transformative Projects focus on planning for infrastructure to reduce heat-related harm, with demonstration infrastructure projects serving as key components to inform the planning product. A total of $7.5 million will be available, with each award ranging from $600,000 to $1 million.
Advanced Transformative Projects fund the implementation of extreme heat infrastructure that is ready or nearly ready for deployment, based on rigorous prior planning and identified needs. A total of $20 million will be available, with each award ranging from $2.5 million to $4 million.
There is a condition of eligibility to apply, local or regional public entities need a co-applicant.
This co applicant must be a community-based organization (CBO) or California Native American Tribe.
DISCUSSION
The Planning and Parks and Recreation Departments are working together to apply for an advanced transformative project that would push toward long-term protection from extreme heat.
Both departments have already identified a need within the community for shade structures at our local parks.
During periods of extreme heat, many soccer teams rotate their practices to Northview Park, as it is currently the only park equipped with a shade cover. Coincidentally, Northview Park is also the only park utilized for party rentals. In 2025, there were 20 park rentals at Northview Park.
However, actual demand was likely higher, as on high-demand days there were multiple rental applications submitted, and reservations were made on a first-come, first-served basis.
If received, the Extreme Heat and Community Resilience Grant could be huge for the city, transforming all the city parks and expanding recreation for the city. It is well known that recreation plays a vital role in the City of Williams, with strong community participation across a wide range of activities from soccer and kickball to horseshoes. Both youth and adult soccer population of 5000 people, implying roughly 14% of our community utilizing our parks 6 days a week.
With a co-applicant as a requirement for eligibility, city staff has reached out to Tri Counties Community Action Partnership, a non-profit that was formed during the economic downturn in the early 2000's when the Colusa, Glenn, Trinity Community Action Partnership (CGTCAP) board identified the need for an increase in non-profit presence in their counties to address challenges in funding and restrictions. A feasibility study was conducted that supported the strategy of developing a nonprofit. Their focus is to be a trusted and flexible partner that fills gaps without duplicating services. Having worked with TCCAP in the past, city staff is confident that they are the best partner to lead the community outreach necessary for this grant.
FISCAL IMPACT
Costs for this work will be minimal. Full expenses for this work are eligible for reimbursement from the grant. Planning Department has some budget for contractual services that could be used to cover the expense if the grant is not received.
RECOMMENDATION
It is recommended that the City Council authorize city staff to collaborate with Tri Countes Community Action Partnership for the Extreme Heat and Community Resilience Grant Prepared and Submitted by: Kathern Ramsaur, City Planner CITY OF WILLIAMS DATE: February 18, 2026
City Council ITEM: 10.
Agenda Report CATEGORY: New Business
Subject:
Appoint Yvonne Kimball to the position of City Manager; review and authorize Mayor to sign employment agreement between the City and Yvonne Kimball.
Background:
The City Council discussed recruitment for the permanent City Manager position several months ago. Following that meeting, the City Council solicited resumes from qualified individuals and subsequently interviewed candidates on December 10, 2025, at a special meeting. Based on those interviews, background checks, and deliberations at the January 21, 2026, City Council meeting during closed session, the City Council directed staff to negotiate an agreement with Yvonne Kimball for the permanent City Manager position.
Discussion:
While the City has been in the capable hands of Police Chief Chris Miller for the past several months as he has taken on the role of Acting City Manager, the City's ongoing success necessitates that a permanent City Manager fill this position. This item is before the City Council to accomplish just that by formally appointing Ms. Kimball to serve as the City's new permanent City Manager beginning tomorrow, February 19, 2026, and to approve the attached employment contract with Ms. Kimball.
Recommended Action:
Staff respectfully requests the City Council:
1. Formally appoint Yvonne Kimball to serve as the new permanent City Manager for the City of Williams beginning tomorrow, February 19, 2026;
2. Authorize the Mayor to sign the attached employment agreement with Ms. Kimball; and
3. Authorize the City Clerk to administer the oath of office to Ms. Kimball.
Attachments:
1. Employment Agreement Between the City of Williams and Yvonne Kimball Prepared and submitted by: City Attorney, Andreas Booher
EMPLOYMENT AGREEMENT
BETWEEN CITY OF WILLIAMS AND YVONNE KIMBALL
This Employment Agreement ("Agreement") is entered into this 18th day of February, 2026 by and between the City of Williams, California ('City"), and Yvonne Kimball ("Employee").
WHEREAS, the City requires the services of a City Manager; and WHEREAS, Employee agrees to provide the necessary skills and expertise of a City Manager beginning February 19, 2026; and
WHEREAS, the City, acting by and through its City Council, desires to employ the services of Employee and to appropriately compensate Employee for such services.
NOW, THEREFORE, in consideration of the mutual covenants and conditions, the parties agree as follows:
Duties and Authority. City hereby confers upon and delegates to Employee all of the duties, powers, and responsibilities of City Manager as set forth in Section 2.06 of the Williams Municipal Code, the ordinances, resolutions, policies, rules, and regulations of the City. Employee is subject to the direction and oversight of the City Council.
2. Days and Hours of Work.
A. Hours. The City Manager is a full-time, exempt employee who is expected to devote the hours necessary to fulfill the obligations of the position.
B. Location of Work. Employee shall, each business week, work Monday through Friday at the City and/or in City Hall, during normal business hours. Employee shall also be available at City, as reasonably needed, for meetings, projects, and other similar or non-routine special events or circumstances.
C. Full Energy and Skill. Employee shall faithfully, diligently, and to the best of Employee's abilities, perform all duties that may be required under this Agreement. Employee agrees that Employee has a duty of loyalty and a general fiduciary duty to the City. Employee shall devote the whole of Employee's working time, skill, experience, knowledge, ability, labor, energy, attention and best effort exclusively to the City's business and affairs.
Term of Employment.
A. Term. Subject to the Employee's and City right to terminate this Agreement and Employee's employment at any time pursuant to the terms of this Agreement, this Agreement shall be for an initial term of three (3) years, beginning February 19,
2026 and ending February 18, 2029. This term is subject to the Employee's and City's right to terminate this Agreement and Employee's employment at any time pursuant to the terms of this Agreement.
B. Automatic Extension. This Agreement shall automatically be renewed for subsequent one (1) year periods unless the City provides written notice to the Employee no less than ninety (90) days prior to the expiration of the current term or an extended term that the Agreement will be terminated. Unless otherwise provided for by a subsequent written agreement between the Parties, the terms and conditions of this Agreement shall apply to any extended term of this Agreement.
C. Right to Terminate. Nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of the City to terminate the services of Employee and this Agreement, at any time, subject only to the provisions set forth in this Agreement.
Furthermore, nothing in this Agreement shall prevent, limit, or otherwise interfere with the right of the Employee to resign at any time from their position with the City, subject only to the provisions set forth in this Agreement.
D. Exclusivity. Employee agrees to remain in the exclusive employment of the City during the term of this Agreement and shall neither accept other employment nor become employed by any other person, business, or organization during the term of this Agreement without the written approval of the City Council. As used in this section, the term "employed" shall not be construed to include occasional teaching, writing, or consulting on Employee's time off, which may be undertaken by the Employee, provided they are conducted with persons, businesses, or organizations not within the City limits. Under no circumstances, however, may Employee engage in outside employment or other activities that present a real or potential conflict of interest with Employee's employment with the City.
Compensation. The City agrees to provide the following compensation to Employee during the term of this Agreement:
A. Salary. City agrees to pay Employee for services rendered a base salary of One Hundred and Seventy-Five Thousand Dollars ($175,000.00) per year, less required and authorized deductions, in periodic installments at the same time as other employees of the City are paid. City agrees to provide Employee with the same annual cost of living adjustment granted to management employees, if any.
Vehicle Allowance. City agrees to pay Employee a vehicle allowance of Two Hundred and Fifty Doilars ($250) per month. This amount will be treated and paid as taxable income to Employee.
Expenses. City will reimburse Employee for all expenses necessarily incurred in
performing duties under this Agreement for the benefit of the City. Expenses will be processed in accordance with established City policy. Employee must obtain approval from the Mayor before incurring any travel-related expenses related to attendance at any conferences associated with City management functions.
Reimbursable expenses include travel, accommodations, and registration for conferences and other professional events related to City affairs, professional training and continuing education, and memberships in professional organizations.
D. Relocation Allowance. City will reimburse Employee for relocation-related expenses up to Five-Thousand Dollars ($5,000). Receipts for this reimbursement must be submitted within the first six (6) months of employment and will be paid within thirty (30) days of submission of receipts.
Education Incentive. Employee possess a Master's Degree in Public Administration and a Graduate Certificate in Urban and Regional Planning from an accredited university, and shall receive the education incentive pay provided to regular full time management employees as set forth in the Miscellaneous Employees Association Memorandum of Understanding ("MOU"), currently $125 a month.
Benefits.
A. Health Benefits. Employee shall be eligible for the same employee health benefits as regular full time Department Heads of the City as said benefits exist from time to time and/or as set forth in Sections Ill and IV of the Miscellaneous Employees Association Memorandum of Understanding ("MOU").
Paid Administrative Leave. Employee shall accrue one hundred twenty (120) hours per calendar year of paid administrative leave, accrued on a pro rata basis each pay period as hours are worked with forty-eight (48) hours made available for use upon hire. For calendar year 2026, Employee will accrue a total of 104 hours of paid administrative leave (based on the fact that she will be employed for 45 out of 52 weeks). To account for the front-loading of 48 hours, Employee will commence accruing a pro rata amount of administrative leave in July 2026.
Vacation and Sick Leave. Employee shall accrue vacation and sick leave in accordance with the terms and conditions set forth in the City's Personnel Rules.
D. Holidays. Employee is eligible to take holidays recognized by the City as set forth in Section IV, Article 44, Section 44.1 of the MOU. Employee is not eligible for any additional amounts as floating holiday pay.
Cellular Phone. Employee shall be provided with a cellular phone for exclusive use related to City business. Employee shall not use Employee's personal mobile devices in performing duties under this Agreement. The City-issued phone will be returned to the City upon the termination of this Agreement and upon City request, along with any passcodes, passwords, and other necessary information to retrieve information stored on the City-issued phone.
F. Retirement Plans. The City participates in CaPERS and will enroll Employee in accordance with CaPERS requirements. Both employer and employee contributions will be made in accordance with the City's contract with CaPERS.
Additionally, Employee shall be eligible to participate in the same deferred compensation program as regular full time Department Heads of the City as set forth in the Miscellaneous Employees Association Memorandum of Understanding ("MOU") and shall be entitled to the same matching contribution provided to regular full-time Department Heads.
G. Deductions. Payroll deductions and/or taxes will be applied as required by law to any Employee benefits.
Termination and Severance Pay.
A. At-Will Employment. Employee serves at the will and pleasure of the City Council and may be terminated with or without cause, and without right of any administrative appeal or hearing, at any time. Consequently, nothing in this Agreement shall in any way affect or limit the City Council's right to terminate the employment of Employee and this Agreement on an at-will basis, with or without cause, and without right of appeal or hearing, at any time.
B. Severance Pay. If Employee and this Agreement are terminated without cause, City agrees to provide Employee with severance pay in a lump sum cash payment equal to three (3) months' base salary or the remaining term of this Agreement (whichever is less), less deductions required by law, and subject to the following condition. Payment of severance pay shall be conditioned upon Employee executing a release and waiver of any and all claims against City, its officers, employees and agents, arising out of Employee's employment with City, and the termination thereof, in such form as may reasonably be required by City.
Severance pay shall not be payable unless and until Employee executes such release and waiver and all revocation rights as provided by law have expired. The intent is that this Agreement is construed in compliance with Government Code section 53260.
C. For-Cause Termination. In the event Employee and this Agreement are terminated for cause, Employee shall not be entitled to any severance pay.
1. Termination for cause is defined as follows:
i. Breach of this Agreement which is not cured within thirty (30) days of the City providing notice of the breach to the Employee. li. Habitual neglect of duties required to be performed under this Agreement.
ili. Any acts of dishonesty, fraud, misrepresentation or other acts of moral turpitude.
iv. Unreasonable refusal or failure to act in accordance with any directive or order of the City Council.
2. In the event that Employee and this Agreement are terminated for cause, Employee will be presented with a general description of the basis for said cause. If Employee seeks to challenge that determination, Employee's sole remedy shall be a judicial action in declaratory relief to determine whether there was substantial evidence of "cause" as defined in Section 6.C. If the court determines there was not substantial evidence, Employee shall receive the severance pay provided in this subsection, but no other damages or entitlement (Employee is not entitled to attorneys' fees in connection with any declaratory relief action that may be filed under this provision). Under no circumstances shall the Employee be entitled to reinstatement as a result of such action.
3. Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Employee to resign at any time from the position with City, subject only to the provisions set forth in this Agreement. In the event the Employee resigns from the position with the City, Employee is requested to voluntarily provide the City sixty (60) days' notice in advance, unless the Parties agree otherwise. In the event the Employee resigns, the Employee shall not be entitled to any severance pay, but the City shall pay the Employee for accrued vacation benefits.
4. Notwithstanding any other provision herein, in accordance with Government Code Section 53260, the cash payment that Employee may receive in the event of the termination of this Agreement, as set forth in Section 6.B. above, shall not exceed an amount equal to the monthly base salary of Employee multiplied by the number of months left on the unexpired term of this Agreement.
Miscellaneous Provisions.
A. Performance Evaluation. The City Council will review and evaluate the performance of the Employee after approximately the first six (6) months of employment and at least annuallv thereafter.
B. Amendments. This Agreement may be amended at any time by mutual agreement of the City and Employee. Any amendments are to be negotiated, in writing, and are not binding unless and until formally adopted by the City Council.
C. Indemnification. In accordance with and subject to California's Government Claims Act, the City shall defend and indemnify Employee against and for all losses sustained by Employee in direct consequences of the discharge of duties on the City's behalf for the period of Employee's employment.
D. Severability. If any clause, sentence, part, section, or portion of this Agreement is found by a court of competent jurisdiction to be illegal or unenforceable, such clause, sentence, part, section, or portion so found shall be regarded as though it were not part of this Agreement and the remaining parts of this Agreement shall be fully binding and enforceable by the parties hereto.
E. Conflict of Interest. During the term of this Agreement, Employee shall not engage in any business or transaction or have a financial or other personal interest or association, direct or indirect, which is in conflict with the proper discharge of official duties or would tend to impair independence of judgment or action in the performance of official duties. Personal as distinguished from financial interest includes an interest arising from blood or marriage relationships or close business or personal associations. Employee shall not, during the term of this Agreement, individually, as a partner, joint venturer, officer or shareholder, invest or participate in any business venture conducting business in the corporate limits of Williams, without the prior approval of the City Council. For and during the term of this Agreement, Employee further agrees, except for a personal residence or residential property acquired or held for future use as a personal residence, not to invest in any other real estate or real property improvements within the corporate limits of Williams, without prior consent of the City Council.
F. Attorney's Fees. With the exception of a declaratory relief action under paragraph
6.C., if any legal action or proceeding is brought to enforce or interpret this Agreement, the prevailing party, as determined by the court, shall be entitled to recover from the other party all reasonable costs and attorney's fees, including such fees and costs as may be incurred in enforcing any judgment or order entered in any such action.
Jurisdiction and Venue. This Agreement shall be construed in accordance with the laws of the State of California and the parties hereto agree that venue shall be in Colusa County, California.
H. Entire Agreement. This Agreement represents the entire Agreement of the parties, and no representations have been made or relied upon except as set forth herein. This Agreement may be amended or modified only by a written, fully executed amendment signed by both parties.
Notice. Any notices required under this Agreement shall be in writing and shall be sent by prepaid first class mail or hand-delivered to the respective parties as To the City: To the Employee:
Mayor Yvonne Kimball
City of Williams Address last on file
810 E Street
P.O. Box 310
Williams, CA 95987
IN WITNESS THEREOF, the parties have executed this Agreement the date and year first above written.
CITY OF WILLIAMS EMPLOYEE
Kate Dunlap, Mayor Yvonne Kimball
APPROVED AS TO FORM:
Andreas Booher, City Attorney