Agenda packet — Williams City Council, September 10, 2026 (part 1 of 2)

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City of Williams
City Council Agenda
810 E Street/P.O. Box 310, Williams, CA 95987

CITY COUNCIL

COUNCIL CHAMBERS
WEDNESDAY, SEPTEMBER 16, 2026

OPEN SESSION
6:00 PM

MEETINGS CAN BE VIEWED AS A COURTESY VIA LIVESTREAM WITH THE FOLLOWING LINK:
https://media.avcaptureall.cloud/?customerGuid=d23ae512-c286-470b-b4b1- ab65a0145ac2&target=foo&view=thumbs&tabs=past|today|upcoming FULL PACKETS CAN BE FOUND WITH THE FOLLOWING LINK:
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. PRESENTATION

1. Receive a presentation on Pioneer Community Energy’s (Pioneer) planned service launch into the City of Williams in October 2027.
1 F. WRITTEN COMMUNICATIONS

2. Acknowledge Leases with Lamar Central Outdoor for two billboards located on Crawford Road.

3. Receive and file Engineer’s update on the E- Street Water and Sewer Improvement Project and Acknowledge Intent to Advertise for Construction Bids G. 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.

4. Approve the minutes of the Regular City Council Meeting of August 19, 2026.

5. Waive the second reading and adopt Ordinance 280-26, a Zoning Ordinance Amendment addressing sign maintenance and abandoned sign removal.

6. Waive the second Reading and adopt Ordinance Ordinance No. 278-26, an Ordinance Amendment allowing 2 ADUs on any property if the open space permits it.

7. Designate the City Manager as City Liaison to the Colusa County Chamber of Commerce Board of Directors. [Requested by the Chamber of Commerce]

8. E-Street Complete Streets Project Program Supplement Agreements (PSA)s:

Resolution No. 26-28 Accepting Caltrans Program Supplement Agreement (PSA) No. 00000 B 043 in the amount of $9,141,000 in Active Transportation Program funds and Authorize City Manager as authorized signer.

Resolution No. 26-29 Accepting Caltrans Program Supplement Agreement (PSA) No. 00000 B066 in the amount of $200,000 in Active Transportation Program funds for the noninfrastructure component of the E Street Complete Streets Project, and authorizing the City Manager to execute the agreement on behalf of the City.

9. Consideration of the financial hardship request by property owner of 547 7th Street and Approve Resolution No. 26-30 Authorizing a onetime payment arrangement for Utility Connection and related charges associated with 545 7th Street.

H. OLD BUSINESS

10. Receive Treasurers Investment Report and Monthly Register for July 2026; Monthly Financial Status Reports as of July 2026.
2 I. NEW BUSINESS

11. Discuss and consider the translation of the City Council Agenda to Spanish.

12. Adopt Resolution 26-31, Construction Management award to Webster Engineering for the E Streets Complete Streets Project.

13. Resolution No. 26-32 Award construction contract for wastewater collection improvement project to Ranger Pipelines, Inc. in the amount of $3,608,377.00 including the base amount plus Alternate B. [fully funded by a Clean Water Grant]

14. Review and accept the FY 2024-2025 audited financial statements, including Single Audit Reports performed in accordance with Government Auditing Standards, and accept the annual reports for Transaction and Use Taxes and Transient Occupancy Taxes as required per Municipal Code section 3.18.120.

15. Resolution No. 26-33 Authorizing the Regional Early Action Planning (REAP) 2.0 Grant Funding Allocation for the City of Williams E Street Complete Streets Project, and Approve a Funding Sub-Recipient Memorandum of Understanding with the County of Colusa. [Grant amount approximately $2.4 million]

16. Accept Cal OES $250,000 Cybersecurity Grant Award, Approve a total project budget of $357,143 including $107,143 in required City matching funds, and Authorize staff to determine project funding allocations between the Water and Sewer Enterprise Funds.

J. 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. City Attorney

2. City Manager

3. Police Chief

4. Fire Chief

5. Finance Director

6. City Planner
L. CLOSED SESSION
CONFERENCE WITH LABOR NEGOTIATORS (Gov’t. Code Sec. 54957.6) Agency Designated Representative: Andreas Booher, City Attorney Unrepresented Employee: City Manager
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City of Williams DATE: September 16, 2026
City Council ITEM: 1.

Agenda Report CATEGORY: Communications
SUBJECT: PRESENTATION

SUMMARY
Attached are written communications received for the following:
• Presentation on Pioneer Community Energy’s (Pioneer)

RECOMMENDATION
No action is required. Information only.

Reviewed and Submitted by: Yvonne Kimball, City Manager Attachments (1) PowerPoint Presentation

5 1
Planning for October 2027 Service Launch in
the City of Williams
6 Introductions
2 7
How Pioneer Works
Pioneer buys electricity on the open
market from various suppliers. Our
buying team works with sources to
negotiate pricing and ensure a
steady, affordable energy supply.

PG&E delivers electricity,
maintains the infrastructure of
power lines and poles, and
sends out bills to customers.

As a customer of both Pioneer and PG&E,
customers get a choice in electricity
providers. With Pioneer, you'll receive
competitive rates, a choice in energy
options and exceptional customer service.
3 8
Pioneer is Growing
Current members
4 Planned expansion for Fall 2027
Butte County
Nevada County
Tuolumne County
Live Oak
Orland
Willows
Town of Paradise
Glenn County
Sutter County
Chico
Oroville
Sonora
Colusa County
City of Colusa
Williams
Yuba City
El Dorado County
City of Auburn
City of Grass Valley
City of Nevada City
City of Rocklin
Placer County
City of Colfax
City of Lincoln
City of Placerville
Town of Loomis
We are excited to welcome you and become a part of your community! 9 Benefits to Williams
Pioneer Community Energy’s #1 priority is saving customers money – but being a Pioneer customer is about so much more than saving money! • Provides a choice for residents and businesses
• Local governance/representation
• Rate-setting transparency
• Opportunities to meet Climate Change/RPS goals
• Community reinvestment
• Potential for economic development projects
• Exceptional local customer service & one-on-one support availability • Money-saving programs created by the community, for the community 10 Supporting Our Shared Community
Pioneer prioritizes community partnership and local reinvestment in fun and innovative ways 6 STEM &Science Education Program Support Feeding the Foothills: Community Benefits Grant Recipient & Staff Volunteer Events
Senior Center Christmas Party
11 Programs Created By The Community, For The Community AC Tune-Up Rebate – $75 back for residential & $150 back for commercial customers who receive a tune-up service for their AC system during April-October
PowerShift Rewards – $25 bonus for signing up; earn even more rewards for conserving energy when the grid is stressed during the hot summer months
GridGen - $0 upfront, no credit check to install industry-leading solar and/or battery at customers’ home or business
• Battery retrofits for existing solar customers
• Provisions for CARE/FERA customers
GridGen customer home in Lincoln!
Community Advisory Committee (CAC):
• Pioneer’s CAC is comprised of community representatives from Pioneer service territory • The committee meets regularly to elevate community needs and discuss new program ideas • Pioneer will be recruiting new members to join the CAC and provide input 12 Programs Created By The Community, For The Community Hourly Flex Pricing – Agricultural customers can
schedule their energy usage up to a week in advance
to reduce energy usage during peak pricing times
After each 12-month program cycle, customers receive
a credit if energy savings is achieved using the
program versus previous energy cycle usage
Commercial/Agricultural
Clean Fleet Revenue Program & Solar RECs
Program: Pioneer’s member agencies
can receive quarterly payments for renewable
energy credits generated from existing electric
vehicles/infrastructure and solar arrays
As a member of Pioneer, Williams is currently
eligible to participate in both programs prior to
official launch in October of 2027
Early Access for Member Agencies
13 9
14 Collaboration and Information Sharing
Pre-launch outreach strategies are intended take the mystery out of the process, address misperceptions, and educate future customers and stakeholders on a variety of important topics. 15 Research and
Early Outreach
January – June 2026
11 Phase 1 Phase 2
Planning
.

July – December 2026
Pre-Launch
Ramp-Up
January – June 2027
Phase 4 Phase 5
Final
Countdown
July – September 2027
Launch + PostLaunch Evaluation
October – December 2027
• Join chambers
• Research community
groups, influencers
• Initial planning
• Map timeline
• Media monitoring
• Develop paid media
plan; reserve ad space
• Brief Pioneer Board
• Budget development
and approval
• Brief new member
agencies and staff
• Message and materials
development
• Early ads launch
“Pioneer Is Coming”
• Presentations to new
member governing
bodies
• Get customer data
• First Town Halls,
webinar and direct
mail #1 and #2
• Website updates
• Prep for required
regulatory notices
• Ad campaign continues
• Pre-enrollment
regulatory mailings
• Town Halls
• Presentations to civic,
fraternal, community
organizations
• Direct mail #3
• Ongoing media
relations
• SERVICE LAUNCH
• Ad campaign
adjustment
“Pioneer Is Here”
• Post-enrollment
regulatory notices
• Careful monitoring and
evaluation
• Direct mail #4
• Promote programs
• NEM enrollment
Planning A Phased Approach
16 12
Messaging will align and evolve with the timeline and take into account regulatory milestones
Meeting People Where They Are …
• Paid Media
• Direct Mail
• Website
• Earned Media
• E-mail
• On-site presence
• Town Halls
• Webinars
• Public Meetings
17 Call:
1 (844) YES-PIONEER
1 (844) 937-7466 or (916) 758-8969
Email:

[email protected]
Visit:
2510 Warren Dr., Suite B, Rocklin, CA 95677
Questions?

CONTACT
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14 19
Background
Summer 2025 • Pioneer presented to City of Colusa City Manager who authorized an Impact Assessment Study be conducted
October 2025 • An Impact Assessment Study was conducted to determine the economic feasibility of Pioneer service expansion into their respective communities • Expansion must make financial sense for all parties
• Pioneer must have the ability to serve the increased load • Study results are shared with Pioneer’s Expansion Committee and Board • Pioneer Board made recommendations on moving forward based on study findings • Pioneer issued a 30-Day Notice of Vote to Amend JPA to include Madera County, City of Chowchilla, and City of Colusa, along with a provisional expansion into Colusa County and City of Williams
• Madera County and the City of Chowchilla decided not to move forward with Pioneer
November 2025 • City of Colusa approved an ordinance and resolution to join Pioneer • Pioneer Board votes to amend JPA to include new members December 2025 • Pioneer filed an Implementation Plan with the CPUC March 2026 • CPUC approved plan; Pioneer began procuring power for Colusa after final confirmation of the desire to join
20 What is a CCA?
Community Choice Aggregators (CCA) allow local governments to purchase electricity on behalf of customers in place of investor-owned utilities (i.e., PG&E for Pioneer Community Energy’s territory)
Energy crisis in the early 2000s prompted the California Legislature to pass Assembly Bill 117 in 2002, enabling community choice in its electricity provider
The first CCA launched in 2010. Today:

More than 25 CCAs throughout California
Serving more than 200 communities
Providing generation for approximately 15 million
customers
16 21
Who is Pioneer?
• A Joint Powers Authority established in 2017 by Placer County and launched service in 2018 – community owned, not-for-profit • Prioritizes ratepayer savings, strong community partnership and reinvestment, and excellence in customer service
• $145 million in ratepayer savings since 2018
• Expansion is focused on serving like-minded areas
• Currently serves more than 170,000+ customers
• Committed to community reinvestment through local renewable energy projects, programs, and goods and services procurement • Awarded an A- issuer credit rating from S&P Global (formerly Standard and Poor’s) and an A+ rating from the Better Business Bureau
17 22
Guiding Principles
Mission
Providing electricity to
customers with a focus on
stable and competitive rates
Since launching in 2018 through 2025,
Pioneer has saved our customers an
estimated $145 million
Vision
Being a strong community
partner
Excellent customer care
Local Power Purchase Agreements
Economic development
Involvement in local chambers
Event participation and sponsorships
Support local businesses through the
purchase of goods and services
23 Benefits to Williams Citizens
19 Local
Control
Customer
Service
Energy
Future
Programs
Stability
Choice
Community
Saves money. From 2018 – 2025, customers
have saved $145 million compared to PG&E.

Customers are our shareholders. Board
is comprised of elected officials from
the communities we serve.

Excellent customer service. We
live in the community and know
most of the questions you have
and can relate.

Customers decide if they want
100% renewable energy or less
and influence what energy projects
we invest in.

Customers decide the energy
efficiency programs we launch. Not
PG&E. Approved $2M for funding.

Track record of success
Pioneer is financially stable with
an A- credit rating from S&P
Customers have a choice for
the first time in 100 years.

Customers are being served by a utility
that is a member of the community. We
buy, invest, and support the community.

Your
Citizens
24 Biomass & Advocacy
Pioneer is committed to supporting biomass energy.

1. Legislation: Pioneer sponsored and led AB 843, which passed on a unanimous bipartisan basis – this bill enabled CCAs to participate in the BioMAT program and launched in Spring 2024

2. Education: Recently hosted an event together with SPI, CalFire, and Placer APCD for legislators about the benefits of biomass to support future legislation for biomass

3. Advocacy: Ongoing advocacy with legislators and regulatory agencies to keep electricity costs low, promote biomass energy, local control, and grid stability, among other things

4. Feed-In Tariff: Pioneer-unique program that invests in biomass, storage, and small-hydro projects in our service territory to benefit the community and enhance local economic development
20 25
Commitment to Partnership
Active involvement with Rural County Representatives of California (RCRC) to identify potential biomass projects that leads to economic development
Participate in member agencies’ Chamber of Commerce committees and events
Co-sponsor League of Cities divisional event annually
Sponsor of marquee events like Lincoln Potters Baseball Club and Sierra Nevada Memorial Hospital gala as examples of
engagement
Work with Economic Development groups to entice project development and identify potential partnerships; offer Green100 product to assist with corporate climate initiatives; and prioritize competitive rates for both residents and businesses
26 Power Mix
27 Solar Customers
23 28
Money-Saving Programs
LED Discounts – subsidized LED lighting through local retailer partners. Find us in your Auburn hardware stores!
AC Tune-Up Rebate – provides rebates to incentivize tune-ups on A/C units to improve efficiency, lower customer utility bills, and make your system last longer PowerShift Rewards – provides residential customers rewards for lowering energy usage when the grid is stressed
GridGen - $0 upfront cost, no credit check program for
residents to get industry-leading solar and/or battery at their home or business, which will provide rate stability, savings, and resiliency during outages
• Battery retrofits for existing solar customers
• Provisions for CARE/FERA customers
Residential
29 Money-Saving Programs
Hourly Flex Pricing – Agriculture customers can
schedule their energy use up to a week in advance
to reduce energy usage during peak pricing times
After each 12-month program cycle, customers
receive a credit if energy savings is achieved using
the program versus previous energy cycle usage
Ice Energy – Commercial customers can install an Ice
Bear unit to their HVAC system to reduce AC
consumption during peak energy hours
The Ice Bear utilizes ice to cool the buildings during
peak energy periods, instead of using the regular
HVAC condenser, so customers save money by shifting
costly A/C load to times with lower energy costs
Commercial
30 PG&E Programs Carry Over
• Enrollment in any program with PG&E, carries over to Pioneer. Examples include but not limited to:
• CARE
• FERA
• Medical Baseline
• PG&E service will not be negatively impacted by joining Pioneer (e.g., service request placed last in queue with PG&E as a Pioneer customer)
• In addition, customers have access to Pioneer programs that are created to meet the unique needs of the communities we serve
31 How are customers billed?
PG&E Bill – Page #1
• Pioneer listed on the front page
• Customer pays total energy bill to PG&E – one payment • PG&E remits $ to Pioneer
32 Total Customer Information
28 33
City of Williams DATE: September 16, 2026
City Council ITEM: 2
Agenda Report CATEGORY: Written Communications
SUBJECT: Billboard Lease Agreement with Lamar Advertising Company - Interstate 5 at Crawford Road; CPI Underpayment Reimbursement and Proposed Updated Lease Terms

BACKGROUND
On January 29, 1997, the City of Williams entered into a lease agreement with Kunz and Company for the placement of two billboards located on the east and west sides of Interstate 5 at Crawford Road. The agreement established annual rent of $2,600, subject to an annual adjustment based on the Consumer Price Index (CPI).

In 2020, following Lamar Advertising Company's acquisition of the leases previously held by Kunz and Company, City staff initiated discussions with Lamar to update the lease agreement to better reflect current market conditions. Lamar proposed increasing the annual rent to $4,000, with future annual CPI adjustments. However, the proposed agreement was never executed by the City Administrator at that time, and the City continued to operate under the original 1997 lease, with only the annual CPI adjustments applied.

In 2026, Lamar again approached the City with a proposal to update the lease. The company initially offered annual compensation of $6,000, adjusted annually by CPI, or 20 percent of gross advertising revenue generated by the billboards, whichever amount is greater.

DISCUSSION
Proposed Lease Update. City staff researched comparable billboard lease agreements and determined that a revenue-sharing rate of 25 percent of gross advertising revenue would be more consistent with current industry standards and would provide greater value to the City than Lamar's initial 20 percent proposal. Staff presented this counterproposal to Lamar, and the company agreed to the revised terms. The proposed lease agreement presented for Council's consideration provides for annual compensation equal to $6,000, adjusted annually by CPI, or 25 percent of gross advertising revenue generated by the billboards, whichever is greater. Staff believes these terms fairly reflect the value of the billboard locations while ensuring the City shares in future increases in advertising revenue.

CPI Calculation Error and Reimbursement. On June 18, 2026, City staff met with a representative of Lamar Advertising Company to discuss the existing lease agreement. During the meeting, Lamar advised staff that one of the company's internal auditors had identified an error in the calculation of the annual CPI adjustments applied to the City's lease payments. The error originated several years earlier, and because each year's rent increase was calculated from the previous year's incorrect amount, the discrepancy compounded over time, resulting in the City being underpaid over multiple years.

Upon discovering the error, Lamar recalculated the rent owed under the lease and voluntarily remitted the full amount of the underpayment to the City. On June 18, 2026, the City received a payment of $25,350.27 to satisfy the outstanding balance. 34 Staff appreciates Lamar's proactive identification and correction of the error. This reimbursement, together with the proposed updated lease agreement, ensures that the City is appropriately compensated both for the historical underpayment and under the revised lease terms moving forward.

FISCAL IMPACT:
● One-time revenue of $25,350.27 received on June 18, 2026, representing the corrected CPI underpayment for prior years.
● Ongoing annual lease revenue will increase from the current CPI-adjusted amount (based on the original $2,600 base) to $6,000 annually, adjusted by CPI, or 25 percent of gross advertising revenue, whichever is greater, upon execution of the updated lease.

Prepared and submitted by: Katheryn Ramsaur – City Planner Reviewed by: Yvonne Kimball, City Manager
Attachments:

Lease #734-01
Lease# 736-01
West of I-5 East of I-5
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37 38
39 40
41 42
43 44
45 46
47 City of Williams DATE: September 16, 2026
City Council ITEM: 3.

Agenda Report CATEGORY: Communications
SUBJECT: WRITTEN COMMUNICATIONS

SUMMARY
Attached are written communications received for the following:
• Engineer’s update on the E- Street Water and Sewer Improvement Project and Acknowledge Intent to Advertise for Construction Bids.

RECOMMENDATION
No action is required. Information only.

Reviewed and Submitted by: Yvonne Kimball, City Manager Attachments (1) Letter from BENEN

48 E STREET WATER AND SEWER IMPROVEMENT PROJECT Page 1 of 2

MEMORANDUM
To: Honorable Mayor and Members of the City Council
From: Dave Harden, PE, City Engineer
Date: September 16, 2026
Subject: Intention to Issue Advertisement for Bid – E Street Water and Sewer Improvement Project Project: Williams E Street Water and Sewer Improvement Project (City Project No. 05-2026

RECOMMENDATION
This is an informational item; no Council action is required at this time. Staff recommends that the Council receive and file this report.

BACKGROUND
The City of Williams is advancing the E Street Complete Streets Project (City Project No. 1-2026), a reconstruction of E Street funded primarily through the California Department of Transportation's Active Transportation Program (ATP). The contract for that project has been awarded by Council and signed; construction has not yet begun.

The water and sewer mains beneath E Street within the Complete Streets project limits are in need of replacement. Consistent with sound engineering practice, this underground utility work must be completed before the street above it is reconstructed, so that the new pavement, curb, gutter, and sidewalk installed under the Complete Streets Project are not later cut open for utility work. This is not funded by the ATP moneys.

NEED TO EXPEDITE / BASIS FOR ADVERTISEMENT
Because the water and sewer replacement work must be completed, or substantially completed, before construction begins on the Complete Streets Project, staff moved forward with advertisement of the E Street Water and Sewer Improvement Project on an expedited basis. Advertising the project promptly allows the utility work to stay ahead of, and not delay, the Complete Streets construction schedule. The construction schedule for the Complete Streets Project will depend in part on the results of the water and sewer bid opening.
49 E STREET WATER AND SEWER IMPROVEMENT PROJECT Page 2 of 2 Advertisement for bid occurred prior to formal Council adoption of the plans, specifications, and working details for the water and sewer project. Staff will return to Council for that formal adoption as described in Section 6 below.

PROJECT DESCRIPTION
The project consists of the replacement of aging water and sewer mains, services, and appurtenances along E Street, generally from the alley west of Sunset Street to just east of 11th Street.

Technical plans and specifications were prepared by PACE Engineering (Laurie McCollum, PE, Project Manager). The front-end contract documents were prepared by BEN|EN and the City Attorney's office, and the complete bid package was compiled jointly by the City Attorney, City Engineer, and PACE Engineering.

ESTIMATED COST
The engineer's estimate for construction of the E Street Water and Sewer Improvement Project is approximately $2.5 million to $3 million. As with any engineer's estimate, this range may be refined once bids are received and opened.

NEXT STEPS
Public Contract Code Section 20162 requires that the plans, specifications, and working details for a city public works project be approved by the City Council. Staff will return to Council with the plans, specifications, and working details, together with the results of the bid opening, for formal adoption and consideration of contract award.

Staff anticipates that this item will be presented at the Council's next regular meeting, likely at the same time as consideration of contract award; however, the exact timing will depend on the bid schedule and the results of the bid opening.

Respectfully submitted,
Dave Harden, PE
City Engineer
50 City of Williams DATE: September 16, 2026
City Council ITEM: 4.

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 August 19, 2026 Submitted by: Mariana Pineda, City Clerk
Attachments: (1)

51 City of Williams
City Council Minutes
810 E Street/P.O. Box 310, Williams, CA 95987

CITY COUNCIL

COUNCIL CHAMBERS
WEDNESDAY, AUGUST 19, 2026

OPEN SESSION
6:00 PM
CALL TO ORDER: Mayor Dunlap called the regular meeting to order at 6:01 pm.

ROLL CALL: Council Members present, Don Parsons, Kate Dunlap, Maria Belmontes Leyva, Alfred Sellers, Jr., and John Troughton, Jr.

PLEDGE OF ALLEGIANCE: Mayor Dunlap invited everyone to join her in the Pledge of Allegiance.

PUBLIC COMMENT
Joanne Burnett, a resident of the City of Williams stated she had two concerns one being the cones over at 4th Street, the other concern is the status of the chickens. She wanted to know if they are registering like they should be. She asked if the cones were going to be left the way they are now or if they will be removed because she believes they are becoming an eye sore.

City Manager Kimball responded that those cones will be removed, but they will be replaced with permanent traffic signalization system.

City Planner Ramsaur addressed her second concern regarding the chickens. She stated that there have been people registering. There are some offenders, but Code Enforcement is still issuing letters to those who are not compliant.

Caroline Vann stated she was also before council to voice her concern about the chickens. She explained that she has chickens running around in her neighborhood plus two roosters. Mrs. Vann said she believes this ordinance has not been enforced and would like to see it removed from the City’s Municipal Code. She said she does not want the City of Williams to become like Yuba City and have a health issue because of this.

Wendy MacKaben stated she was a resident of Colusa not Williams, however her family previously owned a business in the City of Williams. Mrs. MacKaben said she was before City Council in support of the new owners of Gas Sation 76, regarding the situation on 4th Street. They met with the City Manager and came up with some ideas to remedy the situation; one was to hold off until the new Council takes office. Mrs. MacKaben thanked City Council for their time. 52 Sunny Singh Handa, the new owner of Gas Station 76 stated he was there to speak on the same issue, which was 4th Street. He stated they are concerned about the cones and the situation there because it is not good for their business and wanted to know what the plan was. He said the fact that there is no left turn is really hurting his business.

Council Member Parsons stated that was because of safety reasons and that it was a hazard.

Council Member Troughton, Jr., suggested to postpone any decision regarding this issue until December when the new Council Member come on board.

WRITTEN COMMUNICATIONS

1. Receive Notifications of Subrecipient Allocation for Cybersecurity Grant.

2. Review, discuss, and consider approval of response to the 2025-2026 Grand Jury Report.

DISCUSSION: Mayor Dunlap suggested having the review and consideration of the response to the 2025-2026 Grand Jury Report and the other item on written communication moved to the end of new business.

ACTION: Council Member Dunlap made a motion, seconded by Council Member Belmontes Leyva to have the written communications agenda moved to after new business. Motion passed 4-1 by the following roll-call vote:

AYES: Council Members Parsons, Belmontes Leyva, Dunlap, Sellers, Jr.

NOES: Council Member Troughton, Jr.

ABSTAIN: None.

ABSENT: None.

PUBLIC HEARING

3. Hold a public hearing and adopt Resolution 26-23, approving the updated Public Works, Police, and Facilities Rental User Fees, or direct staff to return with any revisions.

DISCUSSION: City Manager Kimball explained that City Planner Ramsaur had taken the lead on updating the various user fees.

Mayor Dunlap opened the Public Hearing at 6:14p.m.

City Planner stated this study is intended to improve cost recovery, establish fees for services that are currently provided without a corresponding charge, and ensure compliance with applicable California laws governing local government fees.

Planner Ramsaur explained that the last comprehensive fee study was done in 2020 and the Building and Business License fees were updated in 2025 and are adjusted on an annual basis by CPI.

Council Member Troughton, Jr. asked after these fees are collected, where would they go.

Finance Director Greenbaum said they would go into the General fund and then separated by department.
53 Mrs. Ramsaur stated that there are fees that are new because staff was already doing the work, but the City was not charging for those services. The only fee that decreased was the Old Gym rental fee.

She stated that fee was elevated and there was no interest in renting it. She mentioned that the Williams Community Center is cheaper to rent and it has a fully functional kitchen but noted that is eleven hundred square feet smaller, and the Old Gym rental does come with six tables and fifty chairs.

Mayor Pro Tem Belmontes Leyva commended City Planner Ramsaur for all her work and putting this together. She also was pleased to see that the Old Gym rental fee has come down and is hoping that will generate some interest and bring in some income for the City.

Mayor Pro Tem Belmontes Leyva inquired about a line item on the Public Works user fees. She said there is a water meter inspection fee. She wondered if someone has a bill inquiry will this fee be charged. Planner Ramsaur stated, not if it is the City’s responsibility.

Mayor Pro Tem Belmontes Leyva requested that the new rental fee for the Old Gym be posted on the marquee to generate interest.

Mayor Dunlap closed the Public Hearing at 6:22p.m.

ACTION: Council Member Parsons made a motion, seconded by Council Member Troughton, Jr., to adopt Resolution 26-23, approving the updated Public Works, Police, and Facilities Rental User Fees.

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.

4. Hold public hearing, introduce and waive the first reading of Ordinance 280-26, a Zoning Ordinance Amendment addressing sign maintenance and abandoned sign removal.

DISCUSSION: City Planner Ramsaur explained this was brought to her attention by the City Manager when she first came to the City of Williams. City Manager Kimball noticed that there were a lot of old and abandoned signs and asked if there was anything that addressed the issue and the answer was no.

Planner Ramsaur did present the ordinance to the Planning Commission for their input as well.

Mayor Dunlap opened the Public Hearing at 6:24p.m.

Mrs. Ramsaur explained that the City of Williams does not currently have an ordinance requiring the maintenance of business signs or a requirement for removal of abandoned signs. She did state that there would be a minor correction to the ordinance. On the exhibit there was a part that did not completely spell the word section out and that was the only correction.

It is staff’s recommendation to introduce and adopt the first reading of Ordinance 280-26.

With no further comments from City Council or the public, Mayor Dunlap closed the public hearing at 6:25p.m.
54 ACTION: Council Member Belmontes Leyva made a motion, seconded by Council Member Troughton, Jr., to introduce and waive the first reading of Ordinance 280-26, a Zoning Ordinance Amendment addressing sign maintenance and abandoned sign removal as corrected. Motion 5-0 passed by the following roll-call vote:

AYES: Council Members Parsons, Belmontes Leyva, Dunlap, Sellers, Jr., Troughton, Jr.

NOES: None.

ABSTAIN: None.

ABSENT: None.

CONSENT

5. Approve the Minutes of the Regular City Council Meeting of July 15, 2026.

6. Adopt of Resolution 26-24, Establishing GANN Appropriations Limit for Fiscal Year 2026-27.

DISCUSSION: Mayor Dunlap asked if there were any questions or corrections on the consent agenda. With no corrections on the minutes and no comments on the rest of the consent agenda, Council took the following action.

ACTION: Council Member Parsons made a motion, seconded by Council Member Belmontes Leyva, to approve the consent agenda. 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.

OLD BUSINESS

7. Receive Treasurers Investment Report and Monthly Register for June 2026; Monthly Financial Status Report as of June 2026.

DISCUSSION: Finance Director gave the treasurers report for the month ending June 2026.

The Finance Director presented the report, including updated economic overview of financial information as of June 2026.

Mayor Dunlap asked if the note on one of the slides under the sewer fund 271 was left there in error because the City has not been receiving sludge from Arbuckle.

Finance Director Greenbaum said the City received the last haul of sludge in November 2025.

ACTION: No action needed at this time.

8. Waive the second reading and adopt Ordinance 278-26 adding Chapter 9.15- Repeated Noise Disturbance Response Cost Recovery to the Williams Municipal Code.

DISCUSSION: Police Chief Miller said this was the second reading of Ordinance 278-26 and if Council or the public don’t have any new questions, he recommends that City Council waive the second reading and adopt 278-26.
55 ACTION: Council Member Belmontes Leyva made a motion, seconded by Council Member Troughton, Jr., to waive the second reading and adopt Ordinance 278-26 adding Chapter 9.15- Repeated Noise Disturbance Response Cost Recovery to the Williams Municipal Code. 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.

9. Waive the second reading and adopt Ordinance 279-26, adding Chapter 9.19 to the Williams Municipal Code.

DISCUSSION: Police Chief Miller explained this was also a second reading and if no one had new questions, his recommendation was for City Council to waive the second reading and adopt Ordinance 279-26, adding Chapter 9.19 to the Williams Municipal Code.

ACTION: Council Member Sellers, Jr., made a motion, seconded by Council Member Belmontes Leyva, to waive the second reading and adopt Ordinance 279-26, adding Chapter 9.19 to the Williams Municipal Code. 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.

10. Accept the 2026 Council Strategic Guidelines and Implementation Framework.

DISCUSSION: City Manager Yvonne Kimball explained this was the second time this item has been before City Council. She stated she had met with every City Council Member individually. These meetings were to discuss the framework in depth and received valuable feedback.

Mrs. Kimball asked for City Council to accept the 2026 Council Strategic Guidelines and Implementation Framework.

Mayor Pro Tem Belmontes Leyva thanked the City Manager for preparing this and for arranging to have the Strategic Planning Special Meeting in June. She stated she believes these guidelines will be very helpful for the new Council.

Council Member Sellers, Jr., asked if the Margurite Street and SR20 were for the four way stop. City Manager Kimball said it was for a traffic signal.

Council Member Troughton, Jr., requested that document be in bigger font.

ACTION: On a consensus of the City Council the 2026 Council Strategic Guidelines and Implementation Framework was accepted.

11. Adopt Resolution No. 26-25 Declaring Completion of the Emergency Repair and Rehabilitation of Municipal Well No. 10 and Terminating the Emergency Procurement Authority Under Resolution No. 26-15.
56 DISCUSSION: City Manager Kimbal explained this was before City Council because the rehabilitation of Well 10 is complete. Mrs. Kimball stated there had been so much work put into this rehabilitation. This is also procedure to adopt the resolution to declare as complete. Since late July, Well 10 has been online and operating at normal capacity. The previously authorized emergency procurement action should be terminated.

It is staff’s recommendation for City Council to adopt Resolution to declare completion of the emergency repair of Well 10. and terminating the emergency procurement pursuant to Williams Municipal Code.

Mayor Pro Tem Belmontes Leyva stated she would like to remove the word Administrator from the resolution as the City no longer uses City Administrator as a title.

With no further comments from Council and no comments from the public, Council took the following action:

ACTION: Council Member Belmontes Leyva made a motion, seconded by Council Member Troughton, Jr., to adopt Resolution No. 26-25 Declaring Completion of the Emergency Repair and Rehabilitation of Municipal Well No. 10 and Terminating the Emergency Procurement Authority Under Resolution No. 26-15 as corrected. 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.

NEW BUSINESS

12. Adopt Resolution 26-26, Rejecting the Bid Protest filed by All American Construction, finding Teichert & Son, Inc, dba Teichert Construction to be the lowest responsive bidder, and award the construction contract to Teichert Construction for the base amount of $8,894,068.00 for the E Street Complete Streets Project.

DISCUSSION: City Engineer Dave Harden thanked City Council for giving him the opportunity to present this item. He explained that there was a delay in being able to award this contract.

Mr. Harden explained to Council that there had been a bid protest from the second lowest bidder, All American construction. He stated that after collaborating with legal counsel the bis protest was rejected.

Staff finds that Teichert submitted the lowest responsive and responsible bid for City Contract No. 01-26 and recommends that the City Council reject All-American's protest and award the construction contract to Teichert in the amount of $8,894,068.00.

Mayor Dunlap asked the City Attorney if there was a recusal that needed to happen regarding this item.

City Attorney Booher stated no one specifically went to him with any property interest within the radius, therefore it would be up to the individuals to determine if they have a conflict of interest. 57 Mayor Dunlap thanked the City Attorney for the clarification.

With no further comments and questions from Council or the public, City Council took the following action.

ACTION: Council Member Troughton, Jr., made a motion, seconded by Council Member Belmontes Leyva, to adopt Resolution 26-26, rejecting the Bid Protest files by All American Construction, finding Teichert & Son, Inc. dba Teichert Construction to be the lowest responsive bidder, and award the construction contract to Teichert Construction for the base amount of $8,894,068 for the E Street Complete Streets Project. 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.

13. Authorize staff to proceed with the $20 million water infrastructure grant immediately and approve budgetary increase to the Water Enterprise Budget by $500,000.

DISCUSSION: Finance Director Greenbaum explained this was a very exciting opportunity that staff recently learned about. He said the City is currently very busy with different grants, and this makes it one more to work on. This is a rather large proposal; City staff have met with HCD as well as PACE Engineering who brought the opportunity to us. Based on those discussions, substantial funding is currently available, and the City may have a strong opportunity to obtain up to 100% grant funding for eligible water system improvements if the City can adequately demonstrate the need for the proposed projects.

Mr. Greenbaum went on to explain that the total estimated project cost could exceed $20 million if the full scope is approved. The grant opportunity is time-sensitive and includes a construction deadline of 2030. Staff noted that a complete and technically supported application is required, including environmental review, surveying, and preliminary engineering to approximately a 30% design level. These efforts will involve environmental analysis, field investigation, utility coordination, permitting review, and preliminary design.

Staff emphasized the need to begin project development immediately in order to meet application requirements and deadlines.

The estimated cost for the application, environmental, and preliminary engineering work is approximately $500,000, which was not included in the FY 2026–2027 budget. Staff noted that these costs are expected to be reimbursable if the project is awarded funding. The Water Enterprise Fund has sufficient capacity to cover the upfront expense.

Staff also indicated that PACE Engineering is well positioned to assist with the project, and a separate item will be brought forward for Council consideration to authorize a professional services agreement Staff recommends that Council authorizes staff to proceed with the $20 million water infrastructure grant immediately and approve budgetary increase to the Water Enterprise Budget by $500,000.

Council Member Parsons asked Mr. Greenbaum to please remind everyone of the location of the City Wells. Mr. Greenbaum said there were two located on the Valley Ranch side and was unsure where the others were.
58 Council Member Troughton, Jr., asked if the situation at Well 9 would be taken into consideration so that the same would not happen again.

City Engineer Harden stated that with all the new technology will help with that.

Council Member Sellers, Jr., asked how many operating wells the City had.

Staff stated that there are three fully operating wells.

Mayor Dunlap thanked Finance Director and his staff, the Public Works Department and especially PACE Engineering for all their hard work.

With no further comment, Council took the following action.

ACTION: Council Member Troughton, Jr, made a motion, seconded by Council Member Parsons, to authorize staff to proceed with the $20 million water infrastructure grant immediately and approve budgetary increase to the Water Enterprise Budget by $500,000. 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.

14. Approve Amendment No. 7 and No. 8 to PACE Engineering Contract, increasing agreement amount for associated projects and extending the term through December 31, 2027.

DISCUSSION: City Manager Kimball provided an update on the City’s ongoing work with PACE Engineering. Since 2022, PACE has been providing engineering and technical support services to the City and has developed a strong understanding of the City’s water and wastewater systems and operations. Mrs. Kimball noted that PACE has played a key role in helping the City secure over $16 million in water and sewer grant funding.

Mrs. Kimball highlighted several projects PACE has worked on, including design of Well No. 11, support for the City’s automatic water meter installation program, design of the one-million-gallon water storage tank, and engineering services for a $5.5 million wastewater collection system improvement project, which has already completed the bidding phase. PACE has also assisted with water and sewer rate studies, preparation of technical specifications for Congressional funding requests that resulted in a $1 million EPA grant, and ongoing permitting and operational support for water and wastewater treatment.

Looking ahead, the City Manager explained that PACE is well positioned to continue supporting the City with current and upcoming projects. These include completion of the wastewater collection system project, design work for the E Street water and sewer improvements in coordination with the Complete E Streets project, and preparation of a State Water Resources Control Board grant application for up to $20 million in water infrastructure funding. Staff noted that this grant application will require preliminary engineering and design, and if awarded, the project must be completed by 2030. Additional work includes support for a $250,000 cybersecurity grant and continued assistance with long-term infrastructure planning. 59 To support this work, PACE has proposed two contract amendments. Amendment No. 7, in the amount of $60,000, would cover engineering services for the E Street utility improvements.

Amendment No. 8, in the amount of $500,000, would fund work related to the water infrastructure grant application and preliminary design. Both amendments would also extend the contract term through December 2027.

Staff noted that under the Williams Municipal Code, professional services are exempt from competitive bidding requirements; however, City Council approval is required for contract amendments exceeding $60,000. Given PACE’s experience, familiarity with City systems, and ongoing involvement in major projects, staff recommended approval of Amendments No. 7 and No.

8. Council Member Sellers, Jr., asked Mrs. Kimball to clarify what each amendment was for.

Mayor Dunlap stated she wanted to mention that the work being done under Amendment No. 7 will be on the E Street Complete Streets Project since the road will be under construction, it is the right time to do water and sewer infrastructure.

Mayor Pro Tem Belmontes Leyva said this comes at a very opportune time so that the City will not have to spend extra money to do the infrastructure work needed.

With no further comments from City Council or the public, City Council took the following action.

ACTION: Council Member Belmontes Leyva made a motion, seconded by Council Member Troughton, Jr., to approve Amendment No. 7 and No. 8 to PACE Engineering Contract, increasing agreement amount for associated projects and extending the term through December 31, 2027, and authorizing the City Manager to execute the amendments. Motion passed 5-0 by the following rollcall vote:

AYES: Council Members Parsons, Belmontes Leyva, Dunlap, Sellers, Jr., Troughton, Jr.

NOES: None.

ABSTAIN: None.

ABSENT: None.

15. Authorize budgetary increase totaling $139,393 in the Supplemental Law Enforcement Services Fund 370 and allow Police Chief to purchase two 2026 Ford F-150 Police Responder Pickups from Hoblit Ford at the California Statewide Contract for Fleet Vehicles bid price.

DISCUSSION: Police Chief Miller reported that two Police Department vehicles have reached the end of their useful life and are recommended for replacement, including a 2010 Ford Expedition and a 2014 Ford Utility Police Interceptor. Both vehicles have high mileage and are no longer suitable for emergency response.

The Department has transitioned to Ford F-150 Police Responder pickups, which are better suited for operational needs. Older units may be reassigned to Public Works when no longer used for patrol.

It is staff’s recommendation to declare these vehicles, along with four additional former police units, as surplus for sale, with proceeds returned to City funds.

ACTION: Council Member Parsons made a motion, seconded by Council Member Belmontes Leyva to authorize budgetary increase totaling $139,393 in the Supplemental Law Enforcement Services 60 Fund 370 and allow Police Chief to purchase two 2026 Ford F-150 Police Responder Pickups from Hoblit Ford at the California Statewide Contract for Fleet Vehicles bid price. 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.

16. Approve the Designation and Sale of Surplus Equipment from the Police Department.

DISCUSSION: Police Chief Miller stated City is required to formally declare equipment as surplus when it is no longer usable or cost-effective to maintain, and to dispose of it through a public sale process, with any proceeds returned to the City.

The Police Department identified several items as surplus, including four vehicles that are either inoperable or too costly to maintain. Staff noted that these vehicles have minimal value and would continue to deteriorate if retained.

Chief Miller explained that once the surplus property is sold that money would go back into the General Fund.

Council Member Parsons asked if those funds would go back to the General Fund or the SLESF Fund.

Chief Miller stated that SLESF Fund is for money received from the Federal Government. This money once received will go to the General Fund and then allocated to the Vehicle Internal Service Fund.

ACTION: Council Member Parsons made a motion, seconded by Council Member Belmontes Leyva, to approve the Designation and sale of Surplus Equipment from the Police Department.

Motion passed by 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.

17. Adopt Resolution 26-27 Award the Construction Contract for remodel of the Old Bowling Alley Building located at 470 7th Street for $878,783 and Authorization of CDBG Loan Purchase Funding Strategy to close the construction funding shortfall.

DISCUSSION: City Planner Ramsaur provided an update on the Old Bowling Alley property project located at 470 7th Street. The project is funded through the City’s CDBG program income and includes improvements to support food distribution and First 5 Colusa services. Staff noted that approximately $903,970 has already been invested in the project, with about $635,000 in remaining CDBG funds available. The State has approved a project extension, requiring completion by June 30, 2027.

Mrs. Ramsaur noted that the remaining construction work was competitively bid, with ABS Builders identified as the lowest responsive bidder. The original bid of $967,000 was reviewed and reduced to 61 $878,783 after removing nonessential items. Staff recommended awarding the contract in the revised amount.

Staff explained that a funding gap of approximately $243,783 remains. If the project is not completed, the City would be required to repay the $903,970 already spent using General Fund resources.

To address the funding gap, Finance Director Greenbaum proposed using the City’s Insurance Internal Service Fund to purchase eligible CDBG loan notes, which would generate additional program income to fund the project. This would not impact the terms of the existing loans.

Staff’s recommendation for Council adopt Resolution 26-27, to award the Construction Contract for remodel of the Old Bowling Alley Building.

Mayor Dunlap asked for some clarification on the project and why Public Works staff is not doing the work anymore.

Mrs. Ramsaur stated that now that the Public Works Director is gone they need someone who is experienced for safety reasons.

Citizen Joanne Burnett asked Council and City staff what the building would be used for.

Mrs. Ramsaur stated it would be used as a food distribution center, and the other half would be used by the Colusa County First Five.

Citizen Caroline Vann then asked when the building was purchased and how much it was purchased for.

Mrs. Ramsaur said the building was purchased in 2023, and it was purchased price was about three hundred and eighty thousand dollars.

Mrs. Vann said the City is spending a lot of money on this building knowing in the situation the City is in. Planner Ramsaur said the money was coming from HCD and Mrs. Vann stated that didn’t matter.

Council Member Troughton, Jr., stated he believed this was poor planning and that he would only be voting for this because the City is too far in on this.

Mayor Dunlap said she disagreed with Council Member Troughton, Jr.’s opinion.

At this time Council took the following action.

ACTION: Council Member Belmontes Leyva made a motion, seconded by Council Member Parsons, to adopt Resolution 26-27 Award the Construction Contract for remodel of the Old Bowling Alley Building located at 470 7th Street for $878,783 and Authorization of CDBG Loan Purchase Funding Strategy to close the construction funding shortfall. Motion passed 5-0 by the following roll-call:

AYES: Council Members Parsons, Belmontes Leyva, Dunlap, Sellers, Jr., Troughton, Jr.

NOES: None.

ABSTAIN: None.

ABSENT: None.
62 WRITTEN COMMUNICATIONS

1. Receive Notifications of Subrecipient Allocation for Cybersecurity Grant.

2. Review, discuss, and consider approval of response to the 2025-2026 Grand Jury Report.

DISCUSSION: No discussion from Council on the first item of the written communications agenda.

Mayor Dunlap thanked Andreas Booher for putting together the response required for the 2025-2026 Grand Jury Report.

ACTION: Council Member Belmontes Leyva made a motion, seconded by Council Member Parsons to approve the response to the 2025-2026 Grand Jury Report as written. Motion passed 4-1 by the following roll-call vote:

AYES: Council Members Parsons, Belmontes Leyva, Dunlap, Sellers, Jr.

NOES: Council Member Troughton, Jr.

ABSTAIN: None.

ABSENT: None.

REPORTS
Council Member Parsons- attended regular meetings. He said the County will be holding a flu clinic at the Library here in Williams on October 7th. More details to come on that.

Mayor Pro Tem Belmontes Leyva – attended regular meetings. She also attended the Parks and Recreation Family Night at the Pool and said it was very well attended. She thanked the owners of Gas Station 76 for their sponsorship.

Mayor Pro Tem Leyva stated that Jackets at City Hall will be starting up next month and is looking forward to it.

Council Member Sellers, Jr.- attended regular meetings and met with the City Manager.

Council Member Troughton, Jr.- attended regular meetings and met with department heads.

Mayor Dunlap – attended regular meetings. She thanked staff for making themselves available to speak with Council Members not only during meetings, but when needed.

STAFF GENERAL REPORTS AND DISCUSSION:

City Attorney- Mr. Andreas Booher had nothing additional to report on a legal standpoint, but wanted to commend staff for all their hard work and being able to bring so much grant funding back to this community.

Mayor Pro Tem Leyva asked Mr. Booher about Senate Bill 707. Mr. Booher stated that staff and himself had looked at that and SB 707 does not apply to the City of Williams.

Mayor Pro Tem Belmontes Leyva said she understood that, but wanted to ask Council to consider translating the agenda to Spanish.
63 Mr. Booher mentioned that maybe this could be discussed at the next meeting because this would bring extra costs to the City for translation services. Mayor Pro Tem Belomontes Leyva said she thought that maybe staff could do the work, but that was not her call. Mr. Booher then suggested having this as a discussion item on the next month’s meeting agenda.

City Manager-Mrs. Kimball thanked staff for all their hard work throughout the years. She said she is very excited about everything that staff has been able to accomplish and will continue to accomplish.

Police Chief Miller- gave an update on the Police Department. He also touched on National Night Out, which was another successful night.

Fire Chief – was absent.

Finance Director- gave an update on the Finance Department. He stated he is very excited for the new opportunities that have come up and he has been able to work on. Mr. Greenbaum stated staff is working hard on securing another grant for $2.4 million dollars.

City Planner Ramsaur- gave an update on the Chevron Project, the Extreme Heat Grant, the Median Household Income Survey and stated they had their monthly Planning Commission Meeting on Monday.

Mayor Dunlap asked if there were any comments from the public regarding the closed session item at this time.

With no public comment, Mayor Dunlap adjourned the open meeting at 7:47p.m. with a five-minute break before entering closed session.

CLOSED SESSION:

1. CONFERENCE WITH LABOR NEGOTIATORS (Gov’t. Code Sec. 54957.6) Agency designated representatives: City Manager
Employee Organizations: Miscellaneous Employees Association and Police Officers Association ADJOURNMENT:

Mayor Dunlap reconvened to open session at 8:57p.m. No reportable action was taken and direction was given to staff.

Mayor Dunlap adjourned the meeting at 8:57p.m.

Kate Dulap, Mayor
_____________________________
Mariana Pineda, City Clerk
64 City of Williams DATE: September 16, 2026
City Council ITEM #: 5.

Agenda Report CATEGORY: Consent
SUBJECT: ZONING CODE UPDATE (ZOA 2026-02) Consideration of Recommendation that the City Council adopt an ordinance entitled “AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WILLIAMS AMENDING SECTION 17.11.140.12 OF THE

WILLIAMS MUNICIPAL CODE RELATING TO SIGN MAINTENANCE AND

ABANDONED SIGN REMOVAL AND FINDING THE ACTION TO BE
STATUTORILY EXEMPT FROM CEQA UNDER PUBLIC RESOURCES CODE § 21080.17.”
BACKGROUND: The City of Williams does not currently have an ordinance requiring the maintenance of business signs or a requirement for removal of abandoned or dilapidated signs.

There are multiple signs in town that are in need of repair or removal.

DISCUSSION
The proposed ordinance will amend Section 17.11.140.12 of the Williams Municipal Code to create an ordinance addressing sign maintenance and abandoned sign removal. As previously discussed there are multiple signs within the city that are in a state of disrepair. The city does not currently have an ordinance to address unmaintained or abandoned signs. The Planning Commission’s action serves as a recommendation to the City Council.

Recommendation:

Waive Second reading and Adopt Zoning Ordinance No. 280-26, a Zoning Ordinance Amendment addressing sign maintenance and abandoned sign removal.

ENVIRONMENTAL REVIEW:

Under California Public Resources Code section 21080.17, CEQA does not apply to the adoption of an ordinance by a city or county implementing the provisions of Chapter 13 of Division 1 of Title 7 of the California Government Code, which is California’s ADU law. Therefore, the proposed ordinance is statutorily exempt from CEQA in that the proposed ordinance implements state ADU law.

ATTACHMENTS:

1. Planning Commission Resolution 2026-02

2. City Council Ordinance
Submitted by: Katheryn Ramsaur, City Planner
65 66
67 68
69 70
71 72
ORDINANCE NO. ________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WILLIAMS ADDING SECTION 17.11.140.12 TO THE

WILLIAMS MUNICIPAL CODE RELATING TO SIGN

MAINTENANCE AND ABANDONED SIGN REMOVAL AND

FINDING THE ACTION TO BE STATUTORILY EXEMPT

FROM CEQA UNDER PUBLIC RESOURCES CODE
§ 21080.17
WHEREAS, the City of Williams, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, state law authorizes cities to act by ordinance to provide for the creation and regulation of signage; and
WHEREAS, the City desires to amend its local regulatory scheme for sign maintenance; and
WHEREAS, on June 22, 2026, the Planning Commission held a duly noticed public hearing and considered the staff report, recommendations by staff, and public testimony concerning this proposed Ordinance. Following the public hearing, the Planning Commission voted to forward the Ordinance to the City Council with a recommendation in favor of its adoption; and
WHEREAS, on August 19, 2026 the City Council held a duly noticed public hearing to consider the Ordinance, including: (1) the public testimony and agenda reports prepared in connection with the Ordinance, (2) the policy considerations discussed therein, and (3) the consideration and recommendation by the City’s Planning Commission; and
WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.

NOW, THEREFORE, the City Council of the City of Williams does ordain as follows:

SECTION 1. Incorporation. The recitals above are each incorporated by reference and adopted as findings by the City Council.

SECTION 2. CEQA. Under California Public Resources Code section 21080.17, the California Environmental Quality Act (“CEQA”) does not apply to the adoption of an ordinance by a city or county implementing the provisions of Chapter 13 of Division 1 of Title 7 of the California Government Code, which is California’s ADU law. Therefore, adoption of the Ordinance is statutorily exempt from CEQA in that it implements state ADU law.
280-26
73 SECTION 3. General Plan. The City Council hereby finds that the adoption of the Ordinance is consistent with the General Plan as a matter of law under Government Code section 66314(c).

SECTION 4. Code Addition. Section 17.11.140.12 of the Williams Municipal Code is hereby amended and restated to read in its entirety as provided in Exhibit “A,” attached hereto and incorporated herein by reference.

SECTION 5. Effective Date. This Ordinance takes effect 30 days after its adoption.

SECTION 6. HCD Submittal. In accordance with Government Code sections 66326 and 66333.5, the City Clerk is directed to submit a copy of this Ordinance to the California Department of Housing and Community Development within 60 days after adoption.

SECTION 7. Publication. The City Clerk is directed to certify to the adoption of this Ordinance and post or publish this Ordinance as required by law.

SECTION 8. Custodian of Records. The custodian of records for this Ordinance is the City Clerk and the records comprising the administrative record are located at 810 E Street, Williams CA 95987.

SECTION 9. Severability. If any provision of this Ordinance or its application to any person or circumstance is held to be invalid by a court of competent jurisdiction, such invalidity has no effect on the other provisions or applications of the Ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this Ordinance are severable. The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any portion thereof. (Continues on next page)
74 PASSED, APPROVED AND ADOPTED by the City Council of the Williams, California, at a regular meeting of the City Council held on September 16, 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF WILLIAMS
________________________________
Mayor, Kate Dunlap
ATTEST:
________________________________
City Clerk, Mariana Pineda
APPROVED AS TO FORM:

BEST BEST & KRIEGER LLP
________________________________
City Attorney, Andreas Booher
75 EXHIBIT A
(follows this page)

17.11.140. Enforcement, legal procedures and penalties
The following signs are declared a public nuisance, subject to abatement pursuant to the provisions of Chapter 8.16 of this code:

A. Declaration of Public Nuisance.

1. Any sign that is erected or installed in violation of this chapter, after the effective date of the ordinance adopting this chapter;

2. Any sign that is abandoned as defined in subsection D of this section;

3. Any sign the owner of which has received a written notice from the Planning Director pursuant to subsection B of Section 17.28.910, and the maintenance, alterations or repairs specified in the notice are not made within thirty calendar days after the date of receipt of such notice.

B. Removal.

1. Removal Without Notice of Signs Within the Right-of-Way. All signs in the public right-ofway may be removed by the city without issuing a notice of violation.

2. Emergency Removal. Where the building official determines that the sign in question poses an imminent safety hazard or dangerous condition, such sign may be removed immediately and stored by the city.

3. Removal of Temporary Signs. Any temporary sign erected, placed or maintained in violation of any provisions of this section may be removed by the city five days after issuance of a notice of violation to the person or party who caused the sign to be erected, if known, and to the owner, lessee or person in lawful possession of the property on which the sign is located.

4. The owners of signs removed pursuant to subsections (B)(1), (B)(2) or (B)(3) of this section shall be liable to the city for all costs and expenses incurred by the city in removing and storing the signs, in accordance with the provisions and procedures of Section 8.16.140 of this code. As soon as practicable following removal pursuant to this 76 subsection B of this Section but in no case later than forty-eight hours after removal, a notice of violation shall be sent to the owner of the sign(s) via regular mail. The sign(s) will be returned to the owner only upon payment of removal and storage costs pursuant to Sect. If the sign(s) is not claimed within thirty days after the receipt of notice of violation the sign(s) may be destroyed.

C. Unauthorized Removal of Signs. No person shall remove, destroy, relocate, or otherwise disturb any sign without the permission of the party who caused the sign to be erected.

Nothing in this subsection shall prohibit the owner of a piece of property, or his or her authorized representative, from removing a sign from his or her property that was erected without his or her consent. Nothing in this subsection shall prevent the building official from taking action to abate sign violations pursuant to the provisions of this code.

D. Abandoned Signs. Signs shall be considered abandoned and subject to abatement pursuant to Chapter 8.12 under any of the following circumstances:

1. A sign other than off-premises sign, which for a period of ninety days, no longer advertises or identifies an ongoing business, product or service available on the premises where the sign is located.

2. Where a sign permit for a temporary sign has expired and the sign has not been removed within one day after the date of expiration.

3. Where the sign concerns a specific event and five days have elapsed since the occurrence of the event.

17.11.150 Maintenance responsibility of signs
A. All signs shall be kept in good condition, be legible, adequately repaired, maintained and painted by the owner thereof at all times. The standard for adequate repairs is that the repairs shall be at least equal in quality and design to the original work such as the paint, finish, materials, landscaping, illumination, structure and any required surrounding landscaping.

B. If the Planning Commission determines that a sign is not properly maintained, the Planning Director will issue a notice requiring its maintenance, alteration, or repair. Upon receiving written notice from the Planning Director, the specified maintenance, alterations, or repairs must be completed within ninety calendar days. 77 C. Appropriate easements for access and maintenance shall be secured for centers that contain more than one parcel and include center identification signs, multitenant signs, single tenant identification signs, et cetera.
78 City of Williams DATE: September 16, 2026
City Council ITEM: 6.

Agenda Report CATEGORY: Consent
SUBJECT: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF WILLIAMS AMENDING SECTION 17.01.050.12 OF THE WILLIAMS MUNICIPAL CODE RELATING TO

ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND

FINDING THE ACTION TO BE STATUTORILY EXEMPT FROM CEQA UNDER PUBLIC RESOURCES CODE § 21080.17.”

BACKGROUND
SB1211 passed the Senate Floor on 5/21/2024 with a 27-8 vote. It passed the State Assembly on 8/28/24 by a 49-8 vote. It passed the State Senate on a concurrence vote of 27-8 on 8/29/24. It was signed into law by Governor Newsom on 9/19/24. This bill allowed for single family lots with multifamily housing on it to be allowed to add two (2) ADU’s on the same lot, by right, if open space requirements and setbacks permit it. Furthermore, SB9 which passed in 2020 has allowed duplex homes (multifamily) to be built on single family lots if they are in-fill projects. These projects are ministerially approved meaning they are not required to be reviewed by Planning Commission.

According to section 17.01.050.12 Accessory Dwelling Units the city currently only allows for one ADU and one JADU on a lot with a single-family home. Since California law now allows for 2 ADUs within the residential areas given there is a duplex on the property, which Planning Commission previously indicated interest in expanding to two ADUs long as open space requirements continue to be met.

DISCUSSION
The proposed ordinance will amend Section 17.01.050.12 of the Williams Municipal Code to comply with recent changes to state law that impose new limits on local authority to regulate Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs). The Planning Commission’s action serves as a recommendation to the City Council.

STAFF RECOMMENDED ACTION
Waive second reading and Adopt Ordinance No. 278-26, an Ordinance Amendment allowing 2 ADUs on any property if the open space permits it.

ENVIRONMENTAL REVIEW:

1. Planning Commission Resolution 2026-01

2. City Council Ordinance
Prepared and submitted by: Katheryn Ramsaur – City Planner 80 81
82 83
84 ORDINANCE NO. 278-26

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WILLIAMS AMENDING SECTION 17.01.050.12 OF THE

WILLIAMS MUNICIPAL CODE RELATING TO

ACCESSORY DWELLING UNITS AND JUNIOR

ACCESSORY DWELLING UNITS AND FINDING THE

ACTION TO BE STATUTORILY EXEMPT FROM CEQA
UNDER PUBLIC RESOURCES CODE § 21080.17
WHEREAS, the City of Williams, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, state law authorizes cities to act by ordinance to provide for the creation and regulation of accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”); and
WHEREAS, in recent years, the California Legislature has approved, and the Governor has signed into law, numerous bills that, among other things, amend various sections of the Government Code to impose new limits on local authority to regulate ADUs and JADUs; and
WHEREAS, in 2025, the California Legislature approved, and the Governor signed into law, further amendments to state ADU law; and
WHEREAS, new updates to state ADU law take effect on January 1, 2026, and for the City’s ADU ordinance to remain valid, it must be amended to reflect the most recent changes to state law; and
WHEREAS, the City desires to amend its local regulatory scheme for the construction of ADUs and JADUs to reflect the most recent changes to state law; and WHEREAS, on April 27th, the Planning Commission held a duly noticed public hearing and considered the staff report, recommendations by staff, and public testimony concerning this proposed Ordinance. Following the public hearing, the Planning Commission voted to forward the Ordinance to the City Council with a recommendation in favor of its adoption; and
WHEREAS, on June 17th, the City Council held a duly noticed public hearing to consider the Ordinance, including: (1) the public testimony and agenda reports prepared in connection with the Ordinance, (2) the policy considerations discussed therein, and (3) the consideration and recommendation by the City’s Planning Commission; and WHEREAS, all legal prerequisites to the adoption of the Ordinance have occurred.

NOW, THEREFORE, the City Council of the City of Williams does ordain as follows:
85 SECTION 1. Incorporation. The recitals above are each incorporated by reference and adopted as findings by the City Council.

SECTION 3. General Plan. The City Council hereby finds that the adoption of the Ordinance is consistent with the General Plan as a matter of law under Government Code section 66314(c).

SECTION 4. Code Amendment. Section 17.01.050.12 of the Williams Municipal Code is hereby amended and restated to read in its entirety as provided in Exhibit “A,” attached hereto and incorporated herein by reference.

SECTION 5. Effective Date. This Ordinance takes effect 30 days after its adoption.

SECTION 7. Publication. The City Clerk is directed to certify to the adoption of this Ordinance and post or publish this Ordinance as required by law.

SECTION 8. Custodian of Records. The custodian of records for this Ordinance is the City Clerk and the records comprising the administrative record are located at 810 E Street, Williams CA 95987.

SECTION 9. Severability. If any provision of this Ordinance or its application to any person or circumstance is held to be invalid by a court of competent jurisdiction, such invalidity has no effect on the other provisions or applications of the Ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this Ordinance are severable. The City Council declares that it would have adopted this Ordinance irrespective of the invalidity of any portion thereof. (Continues on next page)
86 PASSED, APPROVED AND ADOPTED by the City Council of the Williams, California, at a regular meeting of the City Council held on the 16th day of September, 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

CITY OF WILLIAMS
________________________________
Mayor, Kate Dunlap
ATTEST:
________________________________
City Clerk, Mariana Pineda
APPROVED AS TO FORM:

BEST BEST & KRIEGER LLP
________________________________
City Attorney, Andreas Booher
87 EXHIBIT A
Amended ADU Regulations
(follows this page)
88 Section 17.01.050.12 Accessory Dwelling Units
(a) Purpose. The purpose of this section is to allow and regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in compliance with Chapter 13 of Division 1 of Title 7 of the California Government Code. (b) Effect of Conforming. An ADU or JADU that conforms to the standards in this section will not be:
(1) Deemed to be inconsistent with the city’s general plan and zoning designation for the lot on which the ADU or JADU is located.
(2) Deemed to exceed the allowable density for the lot on which the ADU or JADU is located.
(3) Considered in the application of any local ordinance, policy, or program to limit residential growth.
(4) Required to correct a nonconforming zoning condition, as defined in subsection (c)(8) below. This does not prevent the city from enforcing compliance with applicable building standards in accordance with Health and Safety Code section 17980.12. (c) Definitions. As used in this section, terms are defined as follows:
(1) “Accessory dwelling unit” or “ADU” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. An accessory dwelling unit also includes the following:
(A) An efficiency unit, as defined by section 17958.1 of the California Health and Safety Code; and
(B) A manufactured home, as defined by section 18007 of the California Health and Safety Code.
(2) “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot.
(3) “Complete independent living facilities” means permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated.
(4) “Efficiency kitchen” means a kitchen that includes all of the following:
(A) A cooking facility with appliances.
89 (B) A food preparation counter and storage cabinets that are of a reasonable size in relation to the size of the JADU.
(5) “Junior accessory dwelling unit” or “JADU” means a residential unit that satisfies all of the following:
(A) It is no more than 500 square feet of interior livable space in size. (B) It is contained entirely within an existing or proposed single-family structure. An enclosed use within the residence, such as an attached garage, is considered to be a part of and contained within the single-family structure. (C) It includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family structure.
(D) If the unit does not include its own separate bathroom, then it contains an interior entrance to the main living area of the existing or proposed singlefamily structure in addition to an exterior entrance that is separate from the main entrance to the primary dwelling.
(E) It includes an efficiency kitchen, as defined in subsection (c)(4) above. (6) “Livable space” means a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.
(7) “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure. (8) “Nonconforming zoning condition” means a physical improvement on a property that does not conform with current zoning standards.
(9) “Passageway” means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the ADU or JADU.
(10) “Proposed dwelling” means a dwelling that is the subject of a permit application and that meets the requirements for permitting.
(11) “Public transit” means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. (12) “Tandem parking” means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another. (d) Approvals. The following approvals apply to ADUs and JADUs created under this section:
90 (1) Ministerial ADU and Building Permits Required. Every ADU and JADU requires an ADU permit and a building permit. The city will review and approve permit applications in accordance with subsection (d)(3) below. (2) Processing Fee. The city may charge a fee to reimburse it for costs incurred in processing ADU permits, including the costs of adopting or amending the city’s ADU ordinance. The ADU-permit processing fee is determined by the City Planner and approved by the city council by resolution.
(3) Process and Timing.
(A) Completeness.
(i) Determination in 15 days. The city will determine whether an application to create or serve an ADU or JADU is complete and will provide written notice of the determination to the applicant within 15 business days after the city receives the application submittal. (ii) Incomplete items. If the city’s determination under subsection (d)(3)(A)(i) above is that the application is incomplete, the city’s notice must list the incomplete items and describe how the application can be made complete.
(iii) Cure. After receiving a notice that the application is incomplete, the applicant may cure and address the items that were deemed by the city to be incomplete.
(iv) Subsequent submittals. If the applicant submits additional information to address incomplete items, within 15 business days of the subsequent submittal the city will determine in writing whether the additional information remedies all the incomplete items that the city identified in its original notice. The city may not require the application to include an item that was not included in the original notice.
(v) Deemed complete. If the city does not make a timely determination as required by this subsection (A), the application or resubmitted application is deemed complete for the purposes of subsection (d)(3)(C) below.
(vi) Appeal of incompleteness. An applicant may appeal the city’s determination that the application is incomplete by submitting a written appeal to the city clerk. The planning commission will review the written appeal and affirm or reverse the completeness determination and provide a final written determination to the applicant within 60 business days after receipt of the appeal. 91 (B) No discretion or hearing. Ministerial permits for an ADU or JADU are considered and approved without discretionary review or a hearing. (C) Deadline to approve or deny ministerial approvals. The city must approve or deny an application to create an ADU or JADU within 60 days from the date that the city receives a complete application. If the city has not approved or denied the complete application within 60 days, the application is deemed approved unless either:
(i) The applicant requests a delay, in which case the 60-day time period is tolled for the period of the requested delay, or
(ii) When an application to create an ADU or JADU is submitted with a permit application to create a new single-family or multifamily dwelling on the lot, the city may delay acting on the permit application for the ADU or JADU until the city acts on the permit application to create the new single-family or multifamily dwelling, but the application to create the ADU or JADU will still be considered ministerially without discretionary review or a hearing. (D) Denial. If the city denies an application to create an ADU or JADU, the city must provide the applicant with comments that include, among other things, a list of all the defective or deficient items and a description of how the application may be remedied by the applicant. Notice of the denial and corresponding comments must be provided to the applicant within the 60- day time period established by subsection (d)(3)(C) above. (E) Appeal of denial. An applicant may appeal the city’s denial of the application by submitting a written appeal to the city clerk. The planning commission will review the written appeal and affirm or reverse the denial and provide a final written determination to the applicant within 60 business days after receipt of the appeal.
(F) Concurrent review of demolition. A demolition permit for a detached garage that is to be replaced with an ADU is reviewed with the application for the ADU and issued at the same time.
(e) Classes.
(1) Class 1: Statutorily Regulated. Class 1 ADUs and JADUs are approved under Government Code section 66323. If an ADU or JADU complies with each of the general requirements in subsection (f) below, it is allowed in each of the scenarios provided in this subsection (e)(1). An ADU and JADU approved under subsection (e)(1)(A) may be combined with an ADU approved under subsection (e)(1)(B), and 92 ADUs approved under subsection (e)(1)(C) may be combined with ADUs approved under subsection (e)(1)(D).
(A) Converted on Lot with Single-Family: No more than two detached ADUs on a lot with a proposed or existing single-family dwelling on it, or One ADU as described in this subsection (e)(1)(A) and one JADU (i) Is either: within the space of a proposed single-family dwelling; within the existing space of an existing single-family dwelling; or (in the case of an ADU only) within the existing space of an accessory structure, plus up to 150 additional square feet if the expansion is limited to accommodating ingress and egress; and (ii) Has exterior access that is independent of that for the single-family dwelling; and
(iii) Has side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes.
(iv) The JADU complies with the requirements of Government Code sections 66333 through 66339.
(B) Limited Detached on Lot with Single-Family: One ADU as described in this subsection (e)(1)(A) and one JADU or Two detached, newconstruction ADUs on a lot with a proposed or existing single-family dwelling, if the detached ADUs satisfies each of the following limitations:
(i) The side- and rear-yard setbacks are at least four feet. (ii) The total floor area is 800 square feet of livable space or smaller. (iii) The peak height above grade does not exceed the applicable height limit in subsection (f)(2) below.
(C) Converted on Lot with Multifamily: One or more ADUs within portions of existing multifamily dwelling structures that are not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with state building standards for dwellings. Under this subsection (e)(1)(C), at least one converted ADU is allowed within an existing multifamily dwelling, up to a quantity equal to 25 percent of the existing multifamily dwelling units.
(D) Limited Detached on Lot with Multifamily: No more than two detached ADUs on a lot with a proposed multifamily dwelling, or up to eight detached ADUs on a lot with an existing multifamily dwelling, if each detached ADU satisfies all of the following:
93 (i) The side- and rear-yard setbacks are at least four feet. If the existing multifamily dwelling has a rear or side yard setback of less than four feet, the city will not require any modification to the multifamily dwelling as a condition of approving the ADU.
(ii) The peak height above grade does not exceed the applicable height limit provided in subsection (f)(2) below.
(iii) If the lot has an existing multifamily dwelling, the quantity of detached ADUs does not exceed the number of primary dwelling units on the lot.
(2) Class 2: Locally Regulated. Class 2 ADUs are approved under Government Code sections 66314–66322. Except for Class 1 ADUs approved under subsection (e)(1) above, all ADUs are subject to the standards set forth in subsections (f) and (g) below. (f) General Requirements. The following requirements apply to all Class 1 and Class 2 ADUs and JADUs:
(1) Zoning.
(A) A Class 1 ADU approved under subsection (e)(1) may be created on a lot in a residential or mixed-use zone.
(B) A Class 2 ADU approved under subsection (e)(2) above may be created on a lot that is zoned to allow single-family dwelling residential use or multifamily dwelling residential use.
(C) In accordance with Government Code section 66333(a), a JADU may only be created on a lot zoned for single-family residences. (2) Height.
(A) Except as otherwise provided by subsections (f)(2)(B) and (f)(2)(C) below, a detached ADU created on a lot with an existing or proposed single family or multifamily dwelling unit may not exceed 16 feet in height. (B) A detached ADU may be up to 18 feet in height if it is created on a lot with an existing or proposed single family or multifamily dwelling unit that is located within one-half mile walking distance of a major transit stop or high quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code, and the ADU may be up to two additional feet in height (for a maximum of 20 feet) if necessary to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit. (C) A detached ADU created on a lot with an existing or proposed multifamily dwelling that has more than one story above grade may not exceed 18 feet in height.
94 (D) An ADU that is attached to the primary dwelling may not exceed 25 feet in height or the height limitation imposed by the underlying zone that applies to the primary dwelling, whichever is lower. Notwithstanding the foregoing, ADUs subject to this subsection (f)(2)(D) may not exceed two stories. (E) For purposes of this subsection (f)(2), height is measured from existing legal grade or the level of the lowest floor, whichever is lower, to the peak of the structure.
(3) Fire Sprinklers.
(A) Fire sprinklers are required in an ADU or JADU if sprinklers are required in the primary residence.
(B) The construction of an ADU or JADU does not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling. (4) Rental Term. No ADU or JADU may be rented for a term that is shorter than 30 days.

This prohibition applies regardless of when the ADU or JADU was created. (5) No Separate Conveyance. An ADU or JADU may be rented, but, except as otherwise provided in Government Code section 66341, no ADU or JADU may be sold or otherwise conveyed separately from the lot and the primary dwelling (in the case of a single-family lot) or from the lot and all of the dwellings (in the case of a multifamily lot).
(6) Septic System. If the ADU or JADU will connect to an onsite wastewater-treatment system, the owner must include with the application a percolation test completed within the last five years or, if the percolation test has been recertified, within the last 10 years.
(7) Owner Occupancy.
(A) ADUs. ADUs created under this section on or after January 1, 2020 are not subject to an owner-occupancy requirement.
(B) JADUs.
(i) Generally. As required by state law, JADUs are generally subject to an owner-occupancy requirement. A natural person with legal or equitable title to the property must reside on the property, in either the primary dwelling or JADU, as the person’s legal domicile and permanent residence.
(ii) Exceptions. The owner-occupancy requirement in this subsection (f)(7)(B) does not apply in either of the following situations:
95 (I) The JADU has separate sanitation facilities (i.e., does not share sanitation facilities with the existing primary dwelling unit structure).
(II) The property is entirely owned by another governmental agency, land trust, or housing organization.
(8) Deed Restriction. Prior to issuance of a certificate of occupancy for an JADU, a deed restriction must be recorded against the title of the property in the County Recorder’s office and a copy filed with the City Planner. The deed restriction must run with the land and bind all future owners. The form of the deed restriction will be provided by the city and must provide that:
(A) The JADU may not be sold separately from the primary dwelling. (B) The JADU is restricted to the approved size and to other attributes allowed by this section.
(C) The deed restriction runs with the land and may be enforced against future property owners.
(D) The deed restriction may be removed if the owner eliminates the JADU, as evidenced by, for example, removal of the kitchen facilities. To remove the deed restriction, an owner may make a written request of the City Planner, providing evidence that the JADU has in fact been eliminated. The City Planner may then determine whether the evidence supports the claim that the JADU has been eliminated. Appeal may be taken from the City Planner’s determination consistent with other provisions of this Code. If the JADU is not entirely physically removed, but is only eliminated by virtue of having a necessary component of an JADU removed, the remaining structure and improvements must otherwise comply with applicable provisions of this Code.
(E) The deed restriction is enforceable by the City Planner or his or her designee for the benefit of the city. Failure of the property owner to comply with the deed restriction may result in legal action against the property owner, and the city is authorized to obtain any remedy available to it at law or equity, including, but not limited to, obtaining an injunction enjoining the use of the JADU in violation of the recorded restrictions or abatement of the illegal unit.
(9) Building & Safety.
(A) Must comply with building code. Subject to subsection (f)(9)(B) below, all ADUs and JADUs must comply with all local building code requirements.
96 (B) No change of occupancy. Construction of an ADU does not constitute a Group R occupancy change under the local building code, as described in Section 310 of the California Building Code, unless the building official or Code Enforcement Division officer makes a written finding based on substantial evidence in the record that the construction of the ADU could have a specific, adverse impact on public health and safety. Nothing in this subsection (f)(9)(B) prevents the city from changing the occupancy code of a space that was uninhabitable space or that was only permitted for nonresidential use and was subsequently converted for residential use in accordance with this section.
(10) Certificate of Occupancy Timing.
(A) Generally. No certificate of occupancy for an ADU or JADU may be issued before the certificate of occupancy is issued for the primary dwelling unit. (B) Limited Exception for State-declared Emergencies. Notwithstanding subsection (f)(10)(A) above, a certificate of occupancy for an ADU may be issued before a certificate of occupancy for the primary dwelling if each of the following requirements are met:
(i) The county is subject to a proclamation of a state of emergency made by the California Governor on or after February 1, 2025. (ii) The primary dwelling was substantially damaged or destroyed by an event referenced in the Governor’s state of emergency
proclamation.
(iii) The ADU has been issued construction permits and has passed all required inspections.
(iv) The ADU is not attached to the primary dwelling.
(g) Specific ADU Requirements. The following requirements apply only to Class 2 ADUs approved under subsection (e)(2) above. This subsection (g) does not apply to Class 1 ADUs or JADUs approved under subsection (e)(1) above.
(1) Maximum Size.
(A) The maximum size of a detached or attached ADU subject to this subsection (g) is 850 square feet of interior livable space for a studio or one-bedroom unit and 1,000 square feet of interior livable space for a unit with two or more bedrooms.
(B) An attached ADU that is created on a lot with an existing primary dwelling is further limited to 50 percent of the floor area of the existing primary dwelling.
97 (C) Application of other development standards in this subsection (g), such as FAR or lot coverage, might further limit the size of the ADU, but no application of the percent-based size limit in subsection (g)(1)(B) above or of an FAR, front setback, lot coverage limit, or open-space requirement may require the ADU have less than 800 square feet of interior livable space. (2) Floor Area Ratio (FAR). No ADU subject to this subsection (g) may cause the total FAR of the lot to exceed 45 percent, subject to subsection (g)(1)(C) above. (3) Setbacks.
(A) ADUs that are subject to this subsection (g) must conform to 4-foot side and rear setbacks. ADUs that are subject to this subsection (g) must conform to 25-foot front setbacks, subject to subsection (g)(1)(C) above. (B) No setback is required for an ADU that is subject to this subsection (g) if the ADU is constructed in the same location and to the same dimensions as an existing structure.
(4) Lot Coverage. No ADU subject to this subsection (g) may cause the total lot coverage of the lot to exceed 50 percent, subject to subsection (g)(1)(C) above. (5) Minimum Open Space. No ADU subject to this subsection (g) may cause the total percentage of open space of the lot to fall below 50 percent, subject to subsection (g)(1)(C) above.
(6) Passageway. No passageway, as defined by subsection (c)(9) above, is required for an ADU.
(7) Parking.
(A) Generally. One off-street parking space is required for each ADU or bedroom, whichever is less. The parking space may be provided in setback areas or as tandem parking, as defined by subsection (c)(12) above. (B) Exceptions. No parking under subsection (g)(7)(A) is required in the following situations:
(i) The ADU is located within one-half mile walking distance of public transit, as defined in subsection (c)(11) above.
(ii) The ADU is located within an architecturally and historically significant historic district.
(iii) The ADU is part of the proposed or existing primary residence or an accessory structure.
98 (iv) When on-street parking permits are required but not offered to the occupant of the ADU.
(v) When there is an established car share vehicle stop located within one block of the ADU.
(vi) When the permit application to create an ADU is submitted with an application to create a new single-family or new multifamily dwelling on the same lot, provided that the ADU or the lot satisfies any other criteria listed in subsections (g)(7)(B)(i) through (v) above.
(C) No Replacement. When a garage, carport, covered parking structure, or uncovered parking space is demolished in conjunction with the construction of an ADU or converted to an ADU, those off-street parking spaces are not required to be replaced.
(8) Architectural Requirements.
(A) The materials and colors of the exterior walls, roof, and windows and doors must be the same as those of the primary dwelling.
(B) The roof slope must match that of the dominant roof slope of the primary dwelling. The dominant roof slope is the slope shared by the largest portion of the roof.
(C) The exterior lighting must be limited to down-lights or as otherwise required by the building or fire code.
(D) The ADU must have an independent exterior entrance, apart from that of the primary dwelling.
(E) The interior horizontal dimensions of an ADU must be at least 10 feet wide in every direction, with a minimum interior wall height of seven feet. (F) No window or door of the ADU may have a direct line of sight to an adjoining residential property. Each window and door must either be located where there is no direct line of sight or screened using fencing, landscaping, or privacy glass to prevent a direct line of sight. (G) All windows and doors in an ADU less than 30 feet from a property line that is not a public right-of-way line must either be (for windows) clerestory with the bottom of the glass at least six feet above the finished floor, or (for windows and for doors) utilize frosted or obscure glass. (9) Landscape Requirements. Evergreen landscape screening must be planted and maintained between the ADU and adjacent parcels as follows:
99 (A) At least one 15-gallon size plant must be provided for every five linear feet of exterior ADU wall. Alternatively, at least one 24” box size plant must be provided for every ten linear feet of exterior ADU wall. (B) Plant specimens must be at least six feet tall when installed. As an alternative, a solid fence of at least six feet in height may be installed. (C) All landscaping must be drought-tolerant.
(D) All landscaping must be from the city’s approved plant list. (10) Historical Protections. An ADU that is on or within 600 feet of real property that is listed in the California Register of Historic Resources must be located so as to not be visible from any public right-of-way.
(11) Allowed Stories. No ADU subject to this subsection (g) may have more than one story, except that an ADU that is attached to the primary dwelling may have the stories allowed under subparagraph (f)(2)(D) of this section.
(h) Fees. The following requirements apply to all Class 1 ADUs and JADUs and Class 2 ADUs that are approved under subsections (e)(1) or (e)(2) above. (1) Impact Fees.
(A) No impact fee is required for a JADU or for an ADU that has less than 750 square feet of interior livable space. For purposes of this subsection (h)(1), “impact fee” means a “fee” under the Mitigation Fee Act (Gov. Code § 66000(b)) and a fee under the Quimby Act (Gov. Code § 66477). “Impact fee” here does not include any connection fee or capacity charge for water or sewer service.
(B) A JADU or ADU with less than 500 square feet of interior livable space does not increase assessable space by 500 square feet for purposes of Education Code section 17620(a)(1)(C), and is therefore not subject to school fees under Education Code section 17620.
(C) Any impact fee that is required for an ADU that has 750 square feet or more of interior livable space must be charged proportionately in relation to the square footage of the primary dwelling unit. (E.g., the floor area of the ADU, divided by the floor area of the primary dwelling, times the typical fee amount charged for a new dwelling.)
(2) Utility Fees.
(A) If an ADU or JADU is constructed with a new single-family home, a separate utility connection directly between the ADU or JADU and the utility and payment of the normal connection fee and capacity charge for a new dwelling are required.
100
(B) Except as described in subsection (h)(2)(A), JADUs and converted ADUs on a single-family lot that are created under subsection (e)(1)(A) above are not required to have a new or separate utility connection directly between the JADU or ADU and the utility. Nor is a connection fee or capacity charge required. Notwithstanding the rest of this paragraph, a direct utility connection is required for separate conveyance of an ADU when separate conveyance is allowed under this code.
(C) Except as described in subsection (h)(2)(A), all ADUs that are not covered by subsection (h)(2)(B) require a new, separate utility connection directly between the ADU and the utility for any utility that is provided by the city.

All utilities that are not provided by the city are subject to the connection and fee requirements of the utility provider.
(i) The connection is subject to a connection fee or capacity charge that is proportionate to the burden created by the ADU based on either the floor area or the number of drainage-fixture units (DFU) values, as defined by the Uniform Plumbing Code, upon the water or sewer system.
(ii) The portion of the fee or charge that is charged by the city may not exceed the reasonable cost of providing this service.
(i) Nonconforming Zoning Code Conditions, Building Code Violations, and Unpermitted Structures.
(1) Generally. The city will not deny an ADU or JADU application due to a nonconforming zoning condition, building code violation, or unpermitted structure on the lot that does not present a threat to the public health and safety and that is not affected by the construction of the ADU or JADU.
(2) Unpermitted ADUs and JADUs constructed before 2020. (A) Permit to Legalize. As required by state law, the city may not deny a permit to legalize an existing but unpermitted ADU or JADU that was constructed before January 1, 2020, if denial is based on either of the following grounds:
(i) The ADU or JADU violates applicable building standards, or (ii) The ADU or JADU does not comply with state ADU or JADU law or this ADU ordinance (section 17.01.050.12)
(B) Exceptions:
(i) Notwithstanding subsection (i)(2)(A) above, the city may deny a permit to legalize an existing but unpermitted ADU or JADU that was constructed before January 1, 2020, if the city makes a finding 101
that correcting a violation is necessary to comply with the standards specified in California Health and Safety Code section 17920.3. (ii) Subsection (i)(2)(A) above does not apply to a building that is deemed to be substandard in accordance with California Health and Safety Code section 17920.3.
(j) Nonconforming ADUs and Discretionary Approval. Any proposed ADU or JADU that would otherwise be allowed under this section but that does not conform to the objective design or development standards set forth in subsections (a) through (i) of this section may be allowed by the city with a conditional use permit, in accordance with the other provisions of this title.
102
City of Williams DATE: September 16, 2026
City Council ITEM: 7.

Agenda Report CATEGORY: CONSENT
SUBJECT: Designate the City Manager as City Liaison to the Colusa County Chamber of Commerce Board of Directors as requested
BACKGROUND:

The City Manager has been invited by the Colusa County Chamber of Commerce to serve as Williams Laision to the Chamber’s Board of Directors. The City Manager is seeking Council approval to accept this appointment.

DISCUSSION:

Supporting local businesses and expanding business opportunities are City Council’s strategic priorities. The Colusa County Chamber of Commerce plays an important role in promoting business development, fostering partnerships and supporting local businesses. The City shares its interest in strengthening the business community and improving regional collaboration. To further these efforts, the Chamber formally requested that the City Manager serve as the City of Williams liaison to its Board of Directors.

In this capacity, the City Manager would provide the Chamber with City priorities, projects, and developments while providing the City with updates on the Chamber’s programs and countywide economic-development efforts. Attendance at Chamber meetings is expected. The City Manager has extensive experience working with local Chambers of commerce and is well suited to serve in this role.

In addition, both the City of Colusa and Colusa County participate in the Chamber’s government liaison program. Representation from Williams would strengthen regional collaboration and ensure City’s interests are represented.

FISCAL IMPACT:

There is no fiscal impact associated with this appointment.

RECOMMENDATION:

Designate the City Manager to serve as City Liaison to the Colusa County Chamber of Commerce as requested. Alternatively, the City Council may appoint a council member to serve as the Chamber Liaison.

Attachment(s):
• Chamber of Commerce Letter of Invitation
Prepared and Submitted by: Yvonne Kimball, City Manager 103
ColusaChamber.com
1004 Market St., Colusa, CA. 95932 (530) 458-5525 [email protected] August 27, 2026
Yvonne Kimball
City Administrator
City of Williams
810 E Street
Williams, CA 95987
Re: Invitation to Serve as City of Williams Liaison to the Colusa County Chamber of Commerce Board of Directors
Dear Ms. Kimball:

On behalf of the Colusa County Chamber of Commerce, I am pleased to invite you to serve as the City of Williams Liaison to the Chamber’s Board of Directors, subject to authorization by the Williams City Council.

The liaison position provides a direct communication channel between the City of Williams and the Chamber. Your participation would help keep the Chamber informed of City priorities, projects, and business-related developments while providing the City with updates on Chamber programs, member needs, community events, and countywide economic-development efforts.

As the Chamber continues expanding its work throughout Colusa County, we believe your perspective and participation would strengthen coordination between our organizations and help identify opportunities to support existing businesses, attract new investment, encourage tourism, and advance the economic vitality of Williams and the surrounding region.

The liaison would be invited to attend regular Chamber Board meetings and participate in relevant discussions, programs, and collaborative initiatives. This role is intended to support communication and cooperation between the City and the Chamber and does not constitute election to a director seat.

We respectfully request that the Williams City Council consider and approve your service as the City’s designated liaison to the Colusa County Chamber of Commerce Board of Directors. We would be honored to welcome you and look forward to strengthening the Chamber’s partnership with the City of Williams.

Sincerely,
Jack Cunningham
President & CEO
Colusa County Chamber of Commerce
(530) 458-5525
[email protected]
104
City of Williams DATE: September 16, 2026
City Council ITEM : 8.

Agenda Report CATEGORY: CONSENT
SUBJECT: Adopt Resolutions Accepting Active Transportation Program Funds and Authorizing the City Manager to Execute Program Supplement Agreements for the E Street Complete Streets Project

BACKGROUND
The City administers the E Street Complete Streets Project (Project) under Administering AgencyState Agreement No. 03-5246S21 with the California Department of Transportation (Caltrans), effective July 31, 2021. Caltrans has since issued two Program Supplements funding the Project:

Program Supplement No. 00000B043 (State Project No. ATPL-5246(014)), issued June 15, 2026, providing $9,141,000 in Active Transportation Program (ATP) funds toward construction, with a required $404,000 local match; and Program Supplement No. 00000B066 (State Project No.

ATPL-5246(013)), issued August 3, 2026, providing $200,000 in ATP funds for the Project's noninfrastructure outreach and education component. These two Program Supplements are the subject of Items A and B of this report, respectively.

Although a procedural item, as a condition of executing each Program Supplement, Caltrans requires a certified City Council resolution specific to each PSA that clearly states who is authorized to sign on the City's behalf. City Manager traditionally is the intended signer once authorized by the City Council through the enclosed resolutions.

DISCUSSION
Each Program Supplement is a separate grant agreement, so staff recommends the Council act on Items A and B by separate motion, as reflected in the Recommendation section below.

Item A: PSA 5246(013), Non-Infrastructure Component
Program Supplement No. 00000B066 (State Project No. ATPL-5246(013)) provides $200,000 in ATP funds, with no local match required, for community outreach and education programs supporting the Project's active transportation goals; this component does not involve construction work.

Resolution No. 26-28 (Attachment A), if adopted, accepts this Program Supplement and the ATP funds provided thereunder, and authorizes the City Manager, or their designee, to execute the agreement and related documents on the City's behalf.

Item B: PSA 5246(014), Construction Component
Program Supplement No. 00000B043 (State Project No. ATPL-5246(014)) provides $9,141,000 in ATP funds toward construction of the Project, at a total estimated cost of $9,545,000, with a required local match of $404,000.
105
On August 19, 2026, the City Council adopted Resolution No. 2026-26 awarding City Contract No. 01-26 for construction of the Project to A. Teichert & Son, Inc. dba Teichert Construction in the amount of $8,894,068.00 (Notice of Award issued August 20, 2026). A companion staff report on this agenda recommends award of a Professional Services Agreement for construction management, inspection, and contract administration services to Webster Engineering, Inc., in the negotiated amount of $980,000 plus contingency. Because the Teichert contract is less than the Project's total estimated cost, the City has requested that Caltrans amend the scope of this Program Supplement to allow construction engineering costs, including construction management, inspection, and contract administration, to be charged to the grant, which would allow the City to more fully utilize the ATP grant and required local match toward both construction and construction management. The grant and local match are not expected to cover the full combined cost of construction and construction management; additional City funding will be required. Staff is seeking reimbursement through the REAP 2.0 grant, which is included as a separate discussion item on this agenda.

Resolution No. 26-29 (Attachment C), if adopted, accepts this Program Supplement, commits the required local match, and authorizes the City Manager, or their designee, to execute the agreement and related documents on the City's behalf.

FISCAL IMPACT
Item A accepts $200,000 in ATP (state) grant funds with no local match required, and has no net fiscal impact to the General Fund.

Item B accepts $9,141,000 in ATP (state) grant funds and commits a required local match of $404,000 toward construction of the Project, awarded to Teichert Construction in the amount of $8,894,068.00, and toward construction management services being negotiated with Webster Engineering, Inc. under a companion agenda item.

RECOMMENDATION
Staff recommends the City Council take the following actions. Because each action adopts a separate resolution concerning a separate Program Supplement, staff recommends the Council act on Items A and B by separate motions:

A. Adopt Resolution No. 26-28, accepting Program Supplement No. 00000B066 (State Project No. ATPL-5246(013)) in the amount of $200,000 of Active Transportation Program funds for the non-infrastructure component of the E Street Complete Streets Project, and authorizing the City Manager to execute the agreement on behalf of the City.

B. Adopt Resolution No. 26-29, accepting Program Supplement No. 00000B043 (State Project No. ATPL-5246(014)) in the amount of $9,141,000 of Active Transportation Program funds, committing the required $404,000 local match, and authorizing the City Manager to execute the agreement on behalf of the City for construction of the E Street Complete Streets Project.

Prepared and Submitted by: Dave Harden, PE, City Engineer Reviewed by: Yvonne Kimball, City Manager
Attachments:
106
• Resolution No. 26-28, accepting Program Supplement No. 00000B066 (PSA 5246(013)) • Program Supplement Agreement No. 00000B066 (State Project No. ATPL-5246(013)) • Resolution No. 26-29, accepting Program Supplement No. 00000B043 (PSA 5246(014)) • Program Supplement Agreement No. 00000B043 (State Project No. ATPL-5246(014)) 107
RESOLUTION NO. 26-28

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILLIAMS

ACCEPTING ACTIVE TRANSPORTATION PROGRAM FUNDS UNDER PROGRAM SUPPLEMENT NO. 00000B066 (STATE PROJECT NO. ATPL-5246(013)) FOR THE E

STREET COMPLETE STREETS PROJECT NON-INFRASTRUCTURE COMPONENT,

AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT WHEREAS, the City of Williams (City) applied for and was awarded funding under the Active Transportation Program (ATP), a program administered by the California Department of Transportation (Caltrans) and the California Transportation Commission (CTC), for the E Street Complete Streets Project (Project)
WHEREAS, the City and the State of California, Department of Transportation, are parties to Administering Agency-State Agreement No. 03-5246S21 for State Funded Projects, effective July 31, 2021 (Master Agreement), which establishes the general terms and conditions governing state funded projects administered by the City
WHEREAS, Caltrans has prepared Program Supplement No. 00000B066 to the Master Agreement, State Project No. ATPL-5246(013) (Program Supplement), to fund the non-infrastructure portion of the Project consisting of community outreach and education programs, in the amount of $200,000 in ATP funds, with no local match required
WHEREAS, as a condition of executing the Program Supplement, Caltrans requires the City to submit a certified resolution of the City Council that is signed, bears an effective or adoption date, and clearly states who is authorized to sign the agreement on the City's behalf WHEREAS, on May 20, 2026, the City Council adopted a resolution generally authorizing the City Manager to execute Caltrans agreements for federal and state transportation projects, and the City Council also wishes to specifically document its acceptance of this Program Supplement and the ATP funds provided thereunder
WHEREAS, Yvonne Kimball currently holds the position of City Manager of the City of Williams WHEREAS, the City Council desires to accept the grant funds described above and to authorize the City Manager, by virtue of that office, to execute the Program Supplement and related documents necessary to administer the grant
WHEREAS, the City Council finds that acceptance of the Program Supplement and the ATP funds provided thereunder is in the best interest of the City and will further the goals of the Project NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Williams as follows:

1. Recitals. The above recitals are true and correct and are incorporated herein by this reference.

2. Acceptance of Grant Funds. The City Council hereby accepts Program Supplement No. 00000B066 to Administering Agency-State Agreement No. 03-5246S21, State Project No. ATPL-5246(013), and the $200,000 in Active Transportation Program funds provided thereunder for the noninfrastructure component of the E Street Complete Streets Project. 108

3. Authorization to Execute. The City Manager, or their designee, is hereby authorized and directed to execute Program Supplement No. 00000B066 and any subsequent amendments, allocation letters, finance letters, or other documents necessary to administer the Program Supplement, on behalf of the City of Williams. As of the date of this Resolution, Yvonne Kimball holds the office of City Manager.

4. Certification and Transmittal. The City Clerk is hereby directed to certify adoption of this Resolution and to transmit a certified copy of this Resolution, together with the executed Program Supplement, to the California Department of Transportation, Division of Local Assistance, Program Implementation Support Branch.

5. Effective Date. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Williams at a regular meeting held on September 16, 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:
_______________________________
Katherine Dunlap, Mayor of the City of Williams
ATTEST:
_______________________________
Mariana Pineda, City Clerk
109
00000B066
FOR STATE FUNDED PROJECTS NO 03-5246S21
0326000032
August 03, 2026
03-COL-0-WMS
ATPL-5246(013)
5246
This Program Supplement, effective 06/26/2026, hereby adopts and incorporates into the Administering Agency-State Agreement No. 03-5246S21 for State Funded Projects which was entered into between the ADMINISTERING AGENCY and the STATE with an effective date of 07/31/2021 and is subject to all the terms and conditions thereof. This PROGRAM SUPPLEMENT is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. approved by the ADMINISTERING AGENCY on (See copy attached).

The ADMINISTERING AGENCY further stipulates that as a condition to the payment by the State of any funds derived from sources noted below encumbered to this project, Administering Agency accepts and will comply with the Special Covenants and remarks set forth on the following pages.

Non-infrastructure portion for 6131A E Street Complete Streets Community Outreach & Education Programs 0.0(MILES)
Estimated Cost State Funds Matching Funds

CITY OF WILLIAMS
By ________________________________ By ________________________________ Title _______________________________
Date _______________________________
Attest _______________________________ Date _______________________________ Division of Local Assistance
I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance:

Accounting Officer _______________________ Date _______________ PROGRAM SUPPLEMENT NO.
to

ADMINISTERING AGENCY-STATE AGREEMENT
Adv. Project ID Date:

Location:

Project Number:

E.A. Number:

Locode:

PROJECT LOCATION:

TYPE OF WORK: LENGTH:

LOCAL OTHER
$200,000.00 $0.00 $0.00
Chief, Office of Project Implementation

STATE OF CALIFORNIA
Department of Transportation
$200,000.00
STATE $200,000.00
Program Supplement 03-5246-B066- SERIAL 1Page of 4
08/04/2026
110

SPECIAL COVENANTS OR REMARKS
03-COL-0-WMS
ATPL-5246(013)

1. A. This PROJECT will be administered in accordance with the applicable CTC STIP guidelines and the Active Transportation Program guidelines as adopted or amended, the Local Assistance Procedures Manual (LAPM), the Local Assistance Program Guidelines (LAPG), and this PROGRAM SUPPLEMENT.

B. This PROJECT is programmed to receive State funds from the Active Transportation Program (ATP). Funding may be provided under one or more components. A component(s) specific fund allocation is required, in addition to other requirements, before reimbursable work can occur for the component(s) identified. Each allocation will be assigned an effective date and identify the amount of funds allocated per component(s).

This PROGRAM SUPPLEMENT has been prepared to allow reimbursement of eligible PROJECT expenditures for the component(s) allocated. Unless otherwise determined, the effective date of the component specific allocation will constitute the start of reimbursable expenditures.

C. STATE and ADMINISTERING AGENCY agree that any additional funds made available by future allocations will be encumbered on this PROJECT by use of a STATE-approved Allocation Letter and STATE Finance Letter. ADMINISTERING AGENCY agrees that STATE funds available for reimbursement will be limited to the amount allocated by the California Transportation Commission (CTC) and/or the STATE.

D. Upon ADMINISTERING AGENCY request, the CTC and/or STATE may approve supplementary allocations, time extensions, and fund transfers between components. Funds transferred between allocated project components retain their original timely use of funds deadlines, but an approved time extension will revise the timely use of funds criteria for the component(s) and allocation(s) requested. Approved supplementary allocations, time extensions, and fund transfers between components made after the execution of this PROGRAM SUPPLEMENT will be documented and considered subject to the terms and conditions thereof.

Documentation will consist of a STATE approved Allocation Letter, Fund Transfer Letter, Time Extension Letter, and Finance Letter, as appropriate.

E. This PROJECT is subject to the timely use of funds provisions enacted by the Active Transportation Program guidelines, as adopted or amended, and by approved CTC and State procedures as outlined below.

Funds allocated for the environmental & permits (E&P), plan specifications & estimate (PS&E), and right-of-way components are available for expenditure until the end of the second fiscal year following the year in which the funds were allocated.

Funds allocated for the construction component are subject to an award deadline and contract completion deadline. ADMINISTERING AGENCY agrees to award the contract within 6 months of the construction fund allocation and to complete and accept the construction within 36 months of award.

Program Supplement 03-5246-B066- SERIAL 2Page of 4
111

SPECIAL COVENANTS OR REMARKS
03-COL-0-WMS
ATPL-5246(013)
F. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer immediately after project contract award and prior to the submittal of the ADMINISTERING AGENCY'S first invoice for the construction contract. Failure to do so will cause a delay in the State processing of invoices for the construction phase.

G. The ADMINISTERING AGENCY shall invoice STATE for environmental & permits (E&P), plans specifications & estimate (PS&E), and right-of-way costs no later than 180 days after the end of last eligible fiscal year of expenditure. For construction costs, the ADMINISTERING AGENCY has 180 days after project completion or contract acceptance to make the final payment to the contractor prepare the final Report of Expenditures and final invoice, and submit to STATE for verification and payment.

H. ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current LAPM and the Active Transportation Program (ATP) Guidelines.

I. ADMINISTERING AGENCY indirect costs, as defined in 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, to be claimed must be allocated in accordance with an Indirect Cost Allocation Plan (ICAP), submitted, reviewed, and approved in accordance with Caltrans Audits and Investigations requirements which may be accessed at: www.dot.ca.gov/hq/audits/.

ADMINISTERING AGENCY agrees to comply with, and require all sub-recipients and project sponsors to comply with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, and all applicable Federal and State laws and regulations.

ADMINISTERING AGENCY agrees, and will assure that its contractors and subcontractors will be obligated to agree, that Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., and all applicable Federal and State laws and regulations, shall be used to determine the allowability of individual PROJECT cost items.

Any Fund expenditures for costs for which ADMINISTERING AGENCY has received payment or credit that are determined by subsequent audit to be unallowable under 2 CFR, Part 200, or 48 CFR, Chapter 1, Part 3, are subject to repayment by ADMINISTERING AGENCY to STATE. Should ADMINISTERING AGENCY fail to reimburse Funds due STATE within 30 days of demand, or within such other period as may be agreed in writing between the Parties hereto, STATE is authorized to intercept and withhold future payments due ADMINISTERING AGENCY from STATE or any third-party source, including, but not limited to, the State Treasurer, the State Controller, and the California Transportation Commission.

J. By executing this PROGRAM SUPPLEMENT, ADMINISTERING AGENCY agrees to Program Supplement 03-5246-B066- SERIAL 3Page of 4
112

SPECIAL COVENANTS OR REMARKS
03-COL-0-WMS
ATPL-5246(013)
comply with all reporting requirements in accordance with the Active Transportation Program guidelines, as adopted or amended.

K. This PROJECT has received funds from Active Transportation Program (ATP). The ADMINISTERING AGENCY agrees to administer the project in accordance with the CTC Adopted SB1 Accountability and Transparency Guidelines.

2. The ADMINISTERING AGENCY shall construct the PROJECT in accordance with the scope of work presented in the application and approved by the California Transportation Commission. Any changes to the approved PROJECT scope without the prior expressed approval of the California Transportation Commission are ineligible for reimbursement and may result in the entire PROJECT becoming ineligible for reimbursement.

Program Supplement 03-5246-B066- SERIAL 4Page of 4
113
RESOLUTION NO. 26-29

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILLIAMS

ACCEPTING ACTIVE TRANSPORTATION PROGRAM FUNDS UNDER PROGRAM SUPPLEMENT NO. 00000B043 (STATE PROJECT NO. ATPL-5246(014)) FOR

CONSTRUCTION OF THE E STREET COMPLETE STREETS PROJECT, AND

AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT
WHEREAS, the City of Williams (City) applied for and was awarded funding under the Active Transportation Program (ATP), a program administered by the California Department of Transportation (Caltrans) and the California Transportation Commission (CTC), for the E Street Complete Streets Project (Project)
WHEREAS, the City and the State of California, Department of Transportation, are parties to Administering Agency-State Agreement No. 03-5246S21 for State Funded Projects, effective July 31, 2021 (Master Agreement), which establishes the general terms and conditions governing state funded projects administered by the City
WHEREAS, Caltrans has prepared Program Supplement No. 00000B043 to the Master Agreement, State Project No. ATPL-5246(014) (Program Supplement), to fund construction of the Project on E Street between Sunset Street and Husted Road, consisting of a multi-modal pathway, buffered Class II bike lanes, a pedestrian facility gap closure, and a new roundabout, at a total estimated cost of $9,545,000, comprised of $9,141,000 in ATP funds and a required local match of $404,000 WHEREAS, the City's required local match of $404,000 is or will be reflected in the City's adopted budget for the Project
WHEREAS, as a condition of executing the Program Supplement, Caltrans requires the City to submit a certified resolution of the City Council that is signed, bears an effective or adoption date, and clearly states who is authorized to sign the agreement on the City's behalf WHEREAS, on May 20, 2026, the City Council adopted a resolution generally authorizing the City Manager to execute Caltrans agreements for federal and state transportation projects, and the City Council also wishes to specifically document its acceptance of this Program Supplement and the ATP funds provided thereunder
WHEREAS, Yvonne Kimball currently holds the position of City Manager of the City of Williams WHEREAS, the City Council desires to accept the grant funds described above, to commit the required local match, and to authorize the City Manager, by virtue of that office, to execute the Program Supplement and related documents necessary to administer the grant WHEREAS, the City Council finds that acceptance of the Program Supplement and the ATP funds provided thereunder is in the best interest of the City and will further the goals of the Project NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Williams as follows:

1. Recitals. The above recitals are true and correct and are incorporated herein by this reference.

2. Acceptance of Grant Funds. The City Council hereby accepts Program Supplement No. 00000B043 to Administering Agency-State Agreement No. 03-5246S21, State Project No. ATPL-5246(014), and 114
the $9,141,000 in Active Transportation Program funds provided thereunder for construction of the E Street Complete Streets Project.

3. Local Match Commitment. The City Council hereby commits to providing the required local match of $404,000 toward the Project from local funding sources, as and when needed to satisfy the terms of the Program Supplement.

4. Authorization to Execute. The City Manager, or their designee, is hereby authorized and directed to execute Program Supplement No. 00000B043 and any subsequent amendments, allocation letters, finance letters, or other documents necessary to administer the Program Supplement, on behalf of the City of Williams. As of the date of this Resolution, Yvonne Kimball holds the office of City Manager.

5. Certification and Transmittal. The City Clerk is hereby directed to certify adoption of this Resolution and to transmit a certified copy of this Resolution, together with the executed Program Supplement, to the California Department of Transportation, Division of Local Assistance, Program Implementation Support Branch.

6. Effective Date. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Williams at a regular meeting held on September 16, 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:
_______________________________
Katherine Dunlap, Mayor of the City of Williams
ATTEST:
_______________________________
Mariana Pineda, City Clerk
115
00000B043
FOR STATE FUNDED PROJECTS NO 03-5246S21
0326000043
June 15, 2026
03-COL-0-WMS
ATPL-5246(014)
5246
This Program Supplement, effective 05/15/2026, hereby adopts and incorporates into the Administering Agency-State Agreement No. 03-5246S21 for State Funded Projects which was entered into between the ADMINISTERING AGENCY and the STATE with an effective date of 07/31/2021 and is subject to all the terms and conditions thereof. This PROGRAM SUPPLEMENT is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. approved by the ADMINISTERING AGENCY on (See copy attached).

On E Street between Sunset Street and Husted Road, in Williams.

Multi-modal pathway & buffered Class II bike lanes, pedestrian facility gap closur & new roundabout

0.0(MILES)
Estimated Cost State Funds Matching Funds

Accounting Officer _______________________ Date _______________ PROGRAM SUPPLEMENT NO.
to

ADMINISTERING AGENCY-STATE AGREEMENT
Adv. Project ID Date:

Location:

Project Number:

E.A. Number:

Locode:

PROJECT LOCATION:

TYPE OF WORK: LENGTH:

LOCAL OTHER
$9,545,000.00 $404,000.00 $0.00
Chief, Office of Project Management Oversight

STATE OF CALIFORNIA
Department of Transportation
$9,141,000.00
STATE $9,141,000.00
Program Supplement 03--524-B043- SERIAL 1Page of 4
06/16/2026
116

SPECIAL COVENANTS OR REMARKS
03-COL-0-WMS
ATPL-5246(014)

Documentation will consist of a STATE approved Allocation Letter, Fund Transfer Letter, Time Extension Letter, and Finance Letter, as appropriate.

Program Supplement 03--524-B043- SERIAL 2Page of 4
117

SPECIAL COVENANTS OR REMARKS
03-COL-0-WMS
ATPL-5246(014)
Funds allocated for the construction component are subject to an award deadline and contract completion deadline. ADMINISTERING AGENCY agrees to award the contract within 6 months of the construction fund allocation and to complete and accept the construction within 36 months of award.

F. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer immediately after project contract award and prior to the submittal of the ADMINISTERING AGENCY'S first invoice for the construction contract. Failure to do so will cause a delay in the State processing of invoices for the construction phase.

Any Fund expenditures for costs for which ADMINISTERING AGENCY has received Program Supplement 03--524-B043- SERIAL 3Page of 4
118

SPECIAL COVENANTS OR REMARKS
03-COL-0-WMS
ATPL-5246(014)
payment or credit that are determined by subsequent audit to be unallowable under 2 CFR, Part 200, or 48 CFR, Chapter 1, Part 3, are subject to repayment by ADMINISTERING AGENCY to STATE. Should ADMINISTERING AGENCY fail to reimburse Funds due STATE within 30 days of demand, or within such other period as may be agreed in writing between the Parties hereto, STATE is authorized to intercept and withhold future payments due ADMINISTERING AGENCY from STATE or any third-party source, including, but not limited to, the State Treasurer, the State Controller, and the California Transportation Commission.

J. By executing this PROGRAM SUPPLEMENT, ADMINISTERING AGENCY agrees to comply with all reporting requirements in accordance with the Active Transportation Program guidelines, as adopted or amended.

Program Supplement 03--524-B043- SERIAL 4Page of 4
119
City of Williams DATE: September 16, 2026
City Council ITEM: 9.

Agenda Report CATEGORY: Consent
SUBJECT: Request for Authorization of Payment Arrangement for Water Connection and Related Utility Charges

BACKGROUND
The City of Williams Planning Department recently identified an existing business operating at 545 7th Street that is not currently connected to the City's municipal water system. This was originally brought up as a code enforcement issue.

The property owners met with City staff on September 1, 2026, to discuss the necessary actions to bring the property into compliance. Staff explained that, at a minimum, the property owner would be responsible for the City's applicable water connection fee, meter and radio fees, and the cost of installing the water service connection.

The property owners have advised City staff that they are unable to pay the entire amount of the required costs at one time and have requested an installment payment arrangement based upon financial hardship.

Planning staff has requested that the property owners provide a written hardship statement documenting their financial circumstances. The hardship information will be reviewed by City staff and maintained as part of the City's administrative record concerning this request.

APPLICABLE CITY REQUIREMENTS
The City's Municipal Code establishes requirements governing connections to the City's water and sewer systems. Williams Municipal Code Section 13.04.030 provides that a person may not connect a service pipe to the City's water mains without first obtaining the required permit and provides that the applicable connection fee must be paid in full before a connection permit is issued. Section 13.04.050 further provides that water service from the City's mains to the premises is to be installed by the City at the cost of the property owner or applicant.

The Code also provides that water meters are furnished by the City but paid for by the consumer, and that meter installation charges are the responsibility of the consumer.

Accordingly, the requested action is not a request to eliminate or reduce the City's established fees.

Rather, the request is for Council authorization to permit the property owner to satisfy the City's established charges through a structured payment arrangement based upon documented financial hardship. City staff are currently reviewing whether a sewer connection fee would also be required.

CURRENT ESTIMATED COSTS:

Water Connection Fee $3,820.14
Water Meter Fee, including applicable tax $198.72
Radio Fee, including applicable tax $187.92
Estimated City Installation Charges $2,000.00
Estimated Water-Related Total $6,206.78
Potential Sewer Connection Fee: $11,528.02

120
The installation amount is an estimate. The actual cost of installation will be based upon the City's actual labor, materials, equipment, and other applicable costs necessary to complete the water service connection. If a sewer connection is necessary, the total estimated cost would be $17,734.80.

Staff does not recommend that the City Council waive or reduce the sewer connection fee. If the fee is determined to be applicable, it should remain due in accordance with the City's applicable fee schedule and requirements.

REQUEST FOR HARDSHIP PAYMENT ARRANGEMENT
Staff believes that a limited payment arrangement allowing the costs to be paid over time may provide a reasonable mechanism for achieving compliance while protecting the City's financial interests.

The circumstances presented to staff are somewhat unusual because:
• The property is an existing commercial business rather than a new development project; • The property is located in the City's downtown area;
• The property owners are actively working with the City to correct an identified compliance issue; • The requested hardship payment arrangement would allow the property to obtain the water service necessary to address the City's identified compliance concerns; and • The proposed arrangement would not eliminate or reduce any fee owed to the City.

Staff believes these circumstances provide a reasonable basis for Council to consider a one-time, casespecific payment arrangement without establishing a general policy that all future applicants or businesses may receive installment payment terms.

PROPOSED PAYMENT AGREEMENT
If authorized by the City Council, staff would prepare a written payment agreement with the property owner that will include the following provisions:

1. Full amount remains due. No connection fee, meter fee, radio fee, or installation charge would be waived or reduced.

2. Written agreement required. No installment arrangement would become effective until the property owner signs a written agreement approved by the City.

3. Defined payment schedule. The agreement would establish a specific initial payment and monthly installment schedule.

4. Hardship documentation. The payment arrangement would be based upon the hardship information submitted by the property owner.

5. No future precedent. The agreement would expressly state that the arrangement is a one-time accommodation based upon the specific circumstances presented and does not establish a general right to deferred payment of City connection fees.

6. Default provisions. Failure to make required payments would constitute a default under the agreement and permit the City to pursue all lawful collection remedies.

7. Current utility charges. Once water service is established, all ongoing water, sewer, and other utility charges would be due and payable in accordance with the City's normal billing requirements and would be separate from the payment arrangement for the connection costs.

8. Actual installation costs. The property owner would remain responsible for the actual cost of installation, with any adjustment from the current $2,000 estimate reflected in the final account.

9. Security/collection protections. The Finance Department may include appropriate provisions to protect the City's ability to collect the outstanding balance, including any lawful lien, security, or collection remedies available to the City.
121

FISCAL IMPACT
The proposed action would not result in a reduction of City revenue or an appropriation of City funds.

The amounts owed would be included as a utility enterprise receivable.

RECOMMENDATION
Staff recommends that the City Council:

1. Authorize a one-time payment arrangement for the property/business located at 545 7th Street, Williams, California, to allow the property owner to pay the required water and sewer connection fee, water meter fee, radio fee, and City installation costs over an approved installment period rather than requiring payment of the entire amount prior to proceeding with the water connection;

2. Confirm that the payment arrangement does not waive, reduce, or forgive any City fee or charge, and that the property owner remains responsible for payment in full of all amounts due to the City.

ALTERNATIVE
City Council may decide to not approve a one time payment arrangement. The property owner would then be required to pay for all the all the required fees upfront. In unable to comply, the business would have to shut down until they were able to pay and connect to city utilities.

Prepared and Submitted by: Rex Greenbaum, Finance Director Reviewed by: Yvonne Kimball, City Manager

ATTACHMENT(S)
• Proposed Resolution No. 26-30 AUTHORIZING A ONE TIME PAYMENT ARRANGEMENT

FOR UTILITY CONNECTION FEES AND RELATED UTILITY CHARGES ASSOCIATED WITH 545 7TH STREET
122
RESOLUTION NO. 26-30
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILLIAMS AUTHORIZING A ONETIME PAYMENT ARRANGEMENT FOR UTILIY CONNECTION FEES AND RELATED UTILITY CHARGES ASSOCIATED WITH 545 7TH STREET
WHEREAS, the City of Williams ("City") operates and maintains a municipal water and sewer system for the benefit of properties and businesses within the City; and WHEREAS, the City of Williams Planning Department has identified an existing business located at 545 7th Street, Williams, California, that is not currently connected to the City's municipal water system and is required to take corrective action to address an identified compliance issue; and WHEREAS, the property owners met with City staff on September 1, 2026, to discuss the requirements for establishing water service at the property; and
WHEREAS, the property owners have indicated their willingness to comply with the City's requirements and obtain water service; and
WHEREAS, the estimated costs associated with establishing water service currently include a water connection fee of $3,820.14, a water meter fee of $198.72, a radio fee of $187.92, and estimated City installation costs of approximately $2,000, for an estimated water-related total of $6,206.78; and WHEREAS, City staff are continuing to determine whether an additional sewer connection fee of $11,528.02 is applicable to the property; and
WHEREAS, the property owners have represented that they are unable to pay the entire amount of the required utility connection costs at one time and have requested an installment payment arrangement based upon financial hardship; and
WHEREAS, the City Council recognizes that Williams Municipal Code Section 13.04.030 generally requires applicable water connection fees to be paid before issuance of a water connection permit and that Section

13.04.050 requires the cost of water service installation to be borne by the property owner or applicant; and WHEREAS, the City Council has considered the specific circumstances presented by the property owners, including the existing commercial use of the property, its downtown location, the City's identified compliance concerns, the owners' willingness to correct the issue, and the documented financial hardship; and WHEREAS, the City Council desires to facilitate compliance while ensuring that the City receives the full amount of all applicable fees and costs and does not intend to waive, reduce, or forgive any amount otherwise owed to the City; and
123
WHEREAS, the City Council further finds that a limited payment arrangement under a written agreement serves the public interest by facilitating compliance with City requirements while protecting the City's financial interests.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Williams, County of Colusa, State of California, as follows:

Section 1. Authorization.

The City Council hereby authorizes a one-time payment arrangement for the utility connection fees and related charges associated with 545 7th Street, subject to the terms and conditions of this Resolution and a written payment agreement approved by the City Manager or his/her designee.

Section 2. No Waiver or Reduction.

Nothing in this Resolution shall be construed as waiving, reducing, forgiving, or otherwise eliminating any water connection fee, meter fee, radio fee, installation cost, sewer connection fee, or other charge otherwise lawfully imposed by the City.

The property owner shall remain responsible for payment in full of all applicable charges.

Section 3. Payment Agreement.

The Finance Director is authorized to execute a written payment agreement with the property owner establishing the payment schedule, payment deadlines, default provisions, collection remedies, and other terms deemed necessary to protect the City's interests.

Section 4. Actual Installation Costs.

The estimated installation cost of $2,000 is preliminary. The property owner shall be responsible for the actual cost of labor, materials, equipment, and other expenses incurred by the City in completing the water service connection.

Section 5. No Precedent.

The authorization provided by this Resolution is based upon the specific facts and circumstances associated with 545 7th Street and shall not be construed as establishing a general City policy or entitlement to deferred payment of connection fees or other City charges.

Section 6. Compliance with City Requirements.

Nothing in this Resolution relieves the property owner from complying with all applicable City ordinances, building and plumbing requirements, Planning Department requirements, utility requirements, permit requirements, or other applicable federal, state, or local laws.

Section 7. Effective Date.

This Resolution shall take effect immediately upon its adoption. 124
PASSED, APPROVED AND ADOPTED by the City Council of the City of Williams, California this 16th day of September, 2026 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:
_________________________________________
Katherine Dunlap, Mayor of the City of Williams
ATTEST: APPROVED AS TO FORM:
_________________________________________
Mariana Pineda, City Clerk

125

City of Williams DATE: September 16, 2026
City Council ITEM #: 10.

Agenda Report CATEGORY: Old Business
SUBJECT: Treasurer’s Investment Report and Monthly Register as of July 2026; Monthly Financial Status Reports Fiscal Year End Update as of June 2026 BACKGROUND:

The attached report provides the most current information on the City’s investments and the check register report for July 2026. The source of this information is provided monthly by various financial institutions. The deposits and investments described in the attached report comply with the 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 August 2026.

These projections are incorporated into the updated monthly financial status reports that provide a financial overview of the City’s General Fund and Water and Sewer Enterprise Funds for the Fiscal 2026 year-end update. It includes the approved budgets and year-to-date activities for both revenues and expenditures. For the General Fund, it is important to note that there is a lag in receipts for both property and sales taxes.

DISCUSSION:

SALES TAX UPDATE:

For the year ending June 30, 2026, the City has received 12 sales tax payments representing 101% of the sales taxes budgeted for the year. The first two payments of every quarter are advanced estimates provided by the State and do not yet reflect actual sales activity. For this reason, estimates 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, sales tax revenue projections are within 1% of budget and are currently trending $44,403 higher than budget.

TRANSIENT OCCUPANCY TAXES UPDATE:

The current forecast is based on projections for each hotel adjusted for the varying number of payments received to date. TOT revenues ended the year 6.9% higher than budget with a surplus of $31,966. This revenue source can fluctuate from month to month depending on travel activity and local lodging demand.

PRELIMINARY E STREET PROJECT UPDATE:

Also included is a Preliminary E Streets Project Summary including a breakdown of the Sources and Uses of related project costs. It is to be noted that this is only a preliminary analysis with projected grant fund availability and estimated project costs. It includes budgets and expenditures incurred to date.

FINANCIAL STATUS REPORTS UPDATE:
126
Dividing the year-to-date activity against the budget gives us a percentage of budgets utilized. This percentage can then be compared against the expected level of utilization at any period of time allowing us to identify if our expenditures are trending over budget or our revenues are trending under budget.

Based on current budget projections and a review of financial statements, the City’s overall actual revenues and expenditures are in line with the approved budgets. The attached General Fund Status reports include expenditure budgets by department. Notes are included for any unexpected deviations.

CITY INVESTMENTS:

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 July 2026 Treasurer’s Investment and Register Reports and monthly status report update as of June 2026.

Prepared and submitted by: Rex Greenbaum, Finance Director

Attachment(s):
• Treasurer’s Monthly Cash Summary
• General Fund Financial Status Report with Sales Taxes and Transient Occupancy Taxes Projections
• Water and Sewer Enterprise Funds Financial Status Reports • Preliminary E Streets Project Summary
• Monthly Check Register Report
127

CASH ACCOUNTS
US Bank - Business Checking $ 77,310
US Bank - General Checking (City Treasury) $ 871,614
Total Cash $ 948,924

INVESTMENT PORTFOLIO
Description Interest
Local Agency Investment Fund (LAIF) 3.84% $ 7,273,105
California CLASS Funds 3.72% $ 4,740,624
Total Investments $ 12,013,729
Cash & Investments $ 12,962,653
General Fund Apportionment of Cash & Investments
Of the total Cash & Investments, the amount belonging to the General Fund was as follows:

General Fund Cash & Investment Balances $ 6,582,881
Less Storm Drain Deficit (Fund 273) $ (43,162)
Less Street Cash Deficit (Fund 290)* $ (1,633,791)
Less Morning Star Street Loan (Fund 290)* $ (322,464)
Total Deficits $ (1,999,417)
Net General Fund Balance $ 4,583,464
Remaining Pledged Funds for E Street Project (Total pledge of $2,000,000) $ 423,586 Adjusted General Fund Balance $ 4,159,878
* Total E Street Project Expenditures included in Deficit $ 1,576,414 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 - Paid in May 2026 $ 100,000.00
May 15, 2027 $ 322,464.30
Yield Comparison CA CLASS LAIF Variance
July-25 4.34% 4.26% 0.08%
August-25 4.33% 4.25% 0.07%
September-25 4.27% 4.21% 0.06%
October-25 4.19% 4.15% 0.04%
November-25 4.04% 4.10% -0.06%
December-25 3.88% 4.03% -0.15%
January-26 3.78% 3.93% -0.15%
February-26 3.74% 3.87% -0.13%
March-26 3.70% 3.83% -0.13%
April-26 3.69% 3.81% -0.12%
May-26 3.70% 3.81% -0.11%
June-26 3.70% 3.82% -0.12%
July-26 3.72% 3.84% -0.12%
Average Monthly Rate 3.93% 3.99% -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\FY2027\Treasurer's Report FY2027\[July 2026 Investment Detail for 9.16.26 Meeting.xls]Enterprise FY26

CITY OF WILLIAMS

SUMMARY OF CASH AND INVESTMENTS
As of July 31, 2026
128
Note: Annual departmental insurance has been prorated to reflect monthly usage.

GENERAL FUND BUDGET YTD ACTIVITY
% to

BUDGET NOTES
Revenues: $ 5,744,157 $ 5,614,084 97.7% Property tax installments typically received in February, May, and July.

Forecasted Revenue $ 5,820,526 Sales tax receipts lag by 3 months with small amount of income in first 3 months.

Revenue Variance $ 76,369 Monthly reviews of Sales and Transient Occupancy Taxes included with Treasurer's Report.

Expenditures:

City Council $ 307,590 $ 186,538 60.6%
City Clerk $ 120,054 $ 112,658 93.8%
City Administrator $ 144,217 $ 116,049 80.5%
Finance $ 421,636 $ 393,831 93.4% Budgets include annual Infrastructure and vehicle contributions of $100k and $50k.

Police $ 2,330,295 $ 2,038,944 87.5%
Fire District $ 867,000 $ 867,000 100.0%
Planning $ 246,804 $ 228,774 92.7%
Building $ 182,418 $ 117,930 64.6%
Parks $ 222,040 $ 210,877 95.0%
Recreation $ 123,061 $ 115,426 93.8%
Buildings & Grounds $ 430,640 $ 344,955 80.1%
Public Works $ 154,467 $ 162,875 105.4% Includes appoximately $18k in street expenditures needed to meet maintenance of effort.

Swimming Pool $ 91,805 $ 100,544 109.5%
Storm Drain $ 60,783 $ 59,846 98.5%
Total $ 5,702,810 $ 5,056,247 88.7% Expenditures trending in line with approved budgets.

FY2026
Budgeted
Received
through
August 2026
Projected
FY2026
Revenues
Projected FY2026
Surplus (Shortfall)
%
Difference
Bradley Burns Sales Taxes (1%) 1,598,567 1,715,841 1,719,280 120,713 7.6% Add On Sales Taxes (0.5%) 949,662 868,112 873,352 (76,310) -8.0% Total Sales Taxes 2,548,229 2,583,953 2,592,632 44,403 1.7% Transient Occupancy Taxes 465,945 497,911 497,911 31,966 6.9% Totals 76,369
General Fund Financial Status Report as of June 30, 2026 Year End Update (100% of Year) Budgets include annual LAFCO and attorney fees.

Final Quarterly payment made in April 2026.

Sales Taxes and Transient Occupancy Taxes
Higher proportion of usage occurs in summer. Reflects pool use in July and August. Overage 129
Note: Annual departmental insurance has been prorated to reflect monthly usage.

Fund BUDGET YTD ACTIVITY
% to

BUDGET NOTES
Water - Fund 270
Revenues: $ 1,225,441 $ 1,320,970 107.8%
Expenditures: $ 1,318,378 $ 1,412,037 107.1%
Net Income (Loss) $ (92,937) $ (91,066)
Sewer - Fund 271
Revenues: $ 2,420,413 $ 2,554,683 105.5%
Recoverable Costs: $ 600,000 $ 659,900 110.0%
Total Revenues $ 3,020,413 $ 3,214,583
Expenditures: $ 2,849,417 $ 2,737,401 96.1%
Net Income (Loss) $ 170,996 $ 477,182
Expenditures trending in line with budgets. Annual insurance expense has been prorated for the period.

Includes prorated portion of annual Sewer Debt Service Payment of $363,965.

Water and Sewer Enterprise Funds Financial Status Report as of June 30, 2026 Year End Update (100% of Year)
Revenues trending in line with budgets, reflects higher usage in summer months and reflects rate increase.

Overage over base budget attributed to emergency well repairs. Annual insurance expense is prorated by month.

Sewer Revenues in line with budget.

Recoverable costs dependent upon continued intake of sludge. Last intake from November 2025. 130
Budgeted Expended
Remaining
Budget
Bennett Engineering Original All inclusive Budget 1,077,394 Bennett Budget Amendment for Additional Designe
Services 160,590
Total Bennett Engineering 1,237,984 1,237,984 1,138,679 99,305 Teichert E Street Bid 8,894,068
Teichert Contingency @ 5% 444,703
Construction Management E Street 980,000
10,318,771 10,318,771 10,318,771
PG&E E Street Project Expenditures 313,149 313,149 313,149 - Other Right of Way Costs Incurred* 124,751 124,751 124,751 - Total E Street Project Costs (Excluding Water & Sewer
Lines) 11,994,655 1,576,578 10,418,077
Sources of Grant Funds
E Streets Grant Funding 9,141,000
REAP 2.0 Estimated Funding 2,400,000
General Fund Needed to Complete** 453,655
Total Revenues 11,994,655
** This exceeds $404,000 local funds to be provided per 25-C report
Remaining General Fund Allocations (From $2,000,000) 1,546,345 This funding could be used to loan for Water and Sewer
Improvements
DRAFT
Enterprise Funds - Need to update
E Street Water and Sewer Line Engineering Estimate 2,700,000 E Street Water and Sewer Construction Management 122,936 2,822,936 2,822,936
Additional Funding Needed 1,276,591
Preliminary E Streets Project Summary
* These were costs paid directly by the City of Williams. Need to determine whether 131
CITY OF WILLIAMS Check Register - Treasurer Rpt Page: 1 FINANCE DEPARTMENT 07/26 (07/31/2026) to 07/26 (07/31/2026) Sep 03, 2026 3:08PM Report Criteria:

Print Sequence Detail
Journal Code.Journal code = "CDA"
Transaction.Amount >0
Journal Payee or Description Date
Check
Number
Check
Amount
CDA GOLDEN STATE RISK MANAGEMENT 07/15/2026 52267 578,283.23 CDA REFUND 07/15/2026 52300 149.30
CDA ADVANCED DOCUMENT 07/15/2026 52243 194.41
CDA AMAZON CAPITAL SERVICES 07/15/2026 52246 2,108.23
CDA AMERICAN FIDELITY ASSURANCE 07/15/2026 52247 2,040.79 CDA AMERITAS LIFE INSURANCE CORP 07/15/2026 52248 3,039.32 CDA APPEAL-DEMOCRAT 07/15/2026 52249 67.79
CDA BIDWELL H20 07/15/2026 52252 96.90
CDA BUREAU VERITAS NORTH AMER. INC 07/15/2026 52253 300.00 CDA CA DEPT OF JUSTICE-FINGERPRINT 07/15/2026 52254 32.00 CDA CALIFORNIA POLICE CHIEFS ASSOCIATION 07/15/2026 52256 442.00 CDA CASELLE, INC. 07/15/2026 52257 5,640.80
CDA CITY OF WILLIAMS 07/15/2026 52258 534.38
CDA CLOSE LUMBER 07/15/2026 52259 143.45
CDA COLUSA COUNTY AUDITOR'S OFFICE 07/15/2026 52260 12.50 CDA COLUSA COUNTY FARM SUPPLY, INC 07/15/2026 52261 309.12 CDA COMCAST BUSINESS 07/15/2026 52263 423.39
CDA DIVISION OFTHE STATE ARCHITECT 07/15/2026 52265 73.60 CDA EFUEL LLC 07/15/2026 52266 1,189.07
CDA HOBLIT MOTORS 07/15/2026 52268 510.45
CDA LAWSON PRODUCTS INC 07/15/2026 52271 504.04
CDA MESSENGER PUBLISHING GROUP 07/15/2026 52272 80.00
CDA MID VALLEY AUTO CARE 07/15/2026 52274 39.60
CDA PACIFIC GAS & ELECTRIC CO 07/15/2026 52276 10,824.26 CDA PITNEY BOWES GLOBAL 07/15/2026 52277 471.99
CDA PRECISION BUSINESS ASSOC., INC 07/15/2026 52278 2,860.00 CDA RACE COMMUNICATIONS 07/15/2026 52279 1,847.76
CDA REFUND 07/15/2026 52280 45.00
CDA REIMBURSEMENT 07/15/2026 52281 90.00
CDA RIPALOG LLC 07/15/2026 52282 2,800.00
CDA SACRAMENTO VALLEY MUSEUM ASSOC 07/15/2026 52284 2,524.30 CDA SCP DISTRIBUTORS LLC 07/15/2026 52285 3,001.68
CDA SHOP N SAVE MARKET 07/15/2026 52287 36.68
CDA SORENSON PEST CONTROL, INC. 07/15/2026 52288 425.00 CDA TEXAS LIFE INSURANCE COMPANY 07/15/2026 52290 363.50 CDA TRANSUNION RISK AND ALTERNATIVE 07/15/2026 52291 100.00 CDA U S BANK NATIONAL ASSOCIATION 07/15/2026 52292 15.99 CDA UNUM LIFE INS. COMPANY OF AMER 07/15/2026 52293 842.46 CDA VERDANT COMMERCIAL CAPITAL LLC 07/15/2026 52294 249.54 CDA VERIZON WIRELESS 07/15/2026 52295 104.11
CDA VESTIS GROUP INC 07/15/2026 52296 236.72
CDA VISION SERVICE PLAN (CA) 07/15/2026 52297 473.96
CDA WILLIAMS FIRE PROTECTION 07/15/2026 52298 1,160.74
CDA REIMBURSEMENT 07/23/2026 52302 5,000.00
CDA WILLIAMS FIRE PROTECTION 07/23/2026 52303 216,750.00 CDA AMAZON CAPITAL SERVICES 07/31/2026 52306 1,424.50
CDA BENNETT ENGINEERING SERVICES 07/31/2026 52307 48,139.73 CDA BEST BEST & KRIEGER LLP 07/31/2026 52308 3,436.70
CDA CA BUILDING STANDARDS COMM. 07/31/2026 52309 202.50 CDA CARINAS CREATIONS 07/31/2026 52312 20.00
CDA CLOSE LUMBER 07/31/2026 52313 69.11
CDA COLUSA COUNTY SHERIFF'S OFFICE 07/31/2026 52314 105.00 CDA COUNTY OF COLUSA 07/31/2026 52315 33,527.40
Annual Insurance Pmt
Quartely Rent Collected Museum House
Dispatch/Animal Control Quartley Pmt
Finance Annual License
Quartely Pmt
132
CITY OF WILLIAMS Check Register - Treasurer Rpt Page: 2 FINANCE DEPARTMENT 07/26 (07/31/2026) to 07/26 (07/31/2026) Sep 03, 2026 3:08PM Journal Payee or Description Date
Check
Number
Check
Amount
CDA DEPT OF CONSERVATION 07/31/2026 52318 48.84
CDA DERODA INC 07/31/2026 52319 39.63
CDA EFUEL LLC 07/31/2026 52320 523.90
CDA INK AND THREAD CREATIONS 07/31/2026 52324 63.30
CDA LAWSON PRODUCTS INC 07/31/2026 52327 322.35
CDA McCULLOUGH & BURNETT LLC 07/31/2026 52328 1,979.89
CDA MEDICAL AIR SERVICES ASSOCIATION B2B 07/31/2026 52329 160.00 CDA MID VALLEY AUTO CARE 07/31/2026 52331 111.44
CDA MUN CPAs 07/31/2026 52332 5,166.66
CDA OFFICE DEPOT 07/31/2026 52333 35.42
CDA PACE ENGINEERING, INC 07/31/2026 52335 2,601.50
CDA PACIFIC GAS & ELECTRIC CO 07/31/2026 52337 2,295.90 CDA PER DIEM 07/31/2026 52338 140.00
CDA PRECISION BUSINESS ASSOC., INC 07/31/2026 52339 3,582.68 CDA SCP DISTRIBUTORS LLC 07/31/2026 52342 2,603.43
CDA SHADD JANITORIAL SUPPLY, CORP 07/31/2026 52343 168.35 CDA SORENSON PEST CONTROL, INC. 07/31/2026 52344 170.00 CDA SRPSTC 07/31/2026 52346 92.00
CDA THE DOOR COMPANY 07/31/2026 52348 4,396.00
CDA U S BANK NATIONAL ASSOCIATION 07/31/2026 52349 2,739.00 CDA VESTIS GROUP INC 07/31/2026 52351 399.74
CDA VISION SERVICE PLAN (CA) 07/31/2026 52352 495.28
CDA EFUEL LLC 07/31/2026 52354 684.53
CDA PACIFIC WEST BUILDERS INC 07/08/2026 52242 14,772.60 CDA RECOLOGY BUTTE COLUSA COUNTIES 07/31/2026 52340 829.00 CDA IMPACT LED SIGNS 07/15/2026 52269 2,400.00
CDA ADVANCED DOCUMENT 07/15/2026 52243 79.68
CDA AMAZON CAPITAL SERVICES 07/15/2026 52246 136.95
CDA BAY CITY ELECTRIC WORKS 07/15/2026 52251 3,617.89
CDA CASELLE, INC. 07/15/2026 52257 5,640.80
CDA COLUSA GROUNDWATER AUTHORITY 07/15/2026 52262 3,239.73 CDA MESSICK ACE HARDWARE 07/15/2026 52273 54.36
CDA PACE SUPPLY CORP. 07/15/2026 52275 495.47
CDA PACIFIC GAS & ELECTRIC CO 07/15/2026 52276 5,356.74 CDA RACE COMMUNICATIONS 07/15/2026 52279 307.96
CDA SORENSON PEST CONTROL, INC. 07/15/2026 52288 120.00 CDA U S BANK NATIONAL ASSOCIATION 07/15/2026 52292 1,135.50 CDA VERDANT COMMERCIAL CAPITAL LLC 07/15/2026 52294 62.38 CDA VERIZON WIRELESS 07/15/2026 52295 322.53
CDA VESTIS GROUP INC 07/15/2026 52296 77.58
CDA ALPHA ANALYTICAL LABORATORIES INC 07/15/2026 52299 874.00 CDA REFUND 07/15/2026 52301 826.24
CDA WILLIAMS FIRE PROTECTION 07/23/2026 52303 750.00
CDA AMAZON CAPITAL SERVICES 07/31/2026 52306 60.22
CDA BENNETT ENGINEERING SERVICES 07/31/2026 52307 1,560.00 CDA CPM, INC. 07/31/2026 52316 116,317.98
CDA DERODA INC 07/31/2026 52319 26.33
CDA EFUEL LLC 07/31/2026 52320 1,135.07
CDA FLETCHER'S PLUMBING 07/31/2026 52321 1,870.00
CDA MUN CPAs 07/31/2026 52332 5,166.67
CDA OFFICE DEPOT 07/31/2026 52333 35.42
CDA PACE ENGINEERING, INC 07/31/2026 52335 4,855.75
CDA PACE SUPPLY CORP. 07/31/2026 52336 65.17
CDA PACIFIC GAS & ELECTRIC CO 07/31/2026 52337 12,489.74 CDA PRECISION BUSINESS ASSOC., INC 07/31/2026 52339 714.91 CDA REFUND 07/31/2026 52341 1,077.49
CDA SCP DISTRIBUTORS LLC 07/31/2026 52342 2,345.22
CDA STOHLMAN ENTERPRISES INC 07/31/2026 52347 48.17
Planning
Collections
Audit
Finance Parking Gate
Northview Senior Apartments
Streets
CGA Operations Fee 2025-2026
Well 10
133
CITY OF WILLIAMS Check Register - Treasurer Rpt Page: 3 FINANCE DEPARTMENT 07/26 (07/31/2026) to 07/26 (07/31/2026) Sep 03, 2026 3:08PM Journal Payee or Description Date
Check
Number
Check
Amount
CDA U S BANK NATIONAL ASSOCIATION 07/31/2026 52349 817.79 CDA UNDERGROUND SERVICE ALERT OF 07/31/2026 52350 1,111.38 CDA VESTIS GROUP INC 07/31/2026 52351 78.10
CDA ALPHA ANALYTICAL LABORATORIES INC 07/31/2026 52353 182.00 CDA REFUND 07/31/2026 52355 362.33
CDA ADVANCED DOCUMENT 07/15/2026 52243 79.68
CDA ALLMAX SOFTWARE, INC. 07/15/2026 52244 2,241.00
CDA ALPHA ANALYTICAL LABORATORIES INC 07/15/2026 52245 1,038.00 CDA AMAZON CAPITAL SERVICES 07/15/2026 52246 351.11
CDA CALIFORNIA NOTHERN RAILROAD CO 07/15/2026 52255 1,395.84 CDA CASELLE, INC. 07/15/2026 52257 5,640.80
CDA COLUSA COUNTY FARM SUPPLY, INC 07/15/2026 52261 228.42 CDA DERODA INC 07/15/2026 52264 100.46
CDA PACIFIC GAS & ELECTRIC CO 07/15/2026 52276 6,075.37 CDA RACE COMMUNICATIONS 07/15/2026 52279 307.96
CDA ROBINSON ENTERPRISES, INC. 07/15/2026 52283 6,341.45 CDA SCP DISTRIBUTORS LLC 07/15/2026 52285 2,265.64
CDA SHOP N SAVE MARKET 07/15/2026 52287 19.48
CDA SORENSON PEST CONTROL, INC. 07/15/2026 52288 70.00
CDA SPG SOLAR FACILITY X LLC 07/15/2026 52289 13,627.80 CDA U S BANK NATIONAL ASSOCIATION 07/15/2026 52292 695.82 CDA VERDANT COMMERCIAL CAPITAL LLC 07/15/2026 52294 62.38 CDA VERIZON WIRELESS 07/15/2026 52295 784.53
CDA VESTIS GROUP INC 07/15/2026 52296 78.22
CDA WILLIAMS FIRE PROTECTION 07/23/2026 52303 5,000.00
CDA ALL ELECTRIC MOTORS, INC. 07/31/2026 52304 4,645.67 CDA ALPHA ANALYTICAL LABORATORIES INC 07/31/2026 52305 760.00 CDA AMAZON CAPITAL SERVICES 07/31/2026 52306 163.47
CDA BENNETT ENGINEERING SERVICES 07/31/2026 52307 1,864.50 CDA CVCWA 07/31/2026 52317 3,790.00
CDA EFUEL LLC 07/31/2026 52320 1,211.61
CDA GRAINGER 07/31/2026 52322 251.28
CDA MID VALLEY AUTO CARE 07/31/2026 52331 767.79
CDA MUN CPAs 07/31/2026 52332 5,166.67
CDA OFFICE DEPOT 07/31/2026 52333 35.42
CDA PACE ENGINEERING, INC 07/31/2026 52335 7,466.75
CDA PRECISION BUSINESS ASSOC., INC 07/31/2026 52339 714.91 CDA SPG SOLAR FACILITY X LLC 07/31/2026 52345 13,620.70 CDA U S BANK NATIONAL ASSOCIATION 07/31/2026 52349 561.26 CDA VESTIS GROUP INC 07/31/2026 52351 78.22
CDA CITY OF WILLIAMS 07/15/2026 52258 428.77
CDA PACIFIC GAS & ELECTRIC CO 07/15/2026 52276 1,574.20 CDA SORENSON PEST CONTROL, INC. 07/15/2026 52288 20.00
CDA BENNETT ENGINEERING SERVICES 07/31/2026 52307 131.50 CDA CLOSE LUMBER 07/31/2026 52313 14.70
CDA PACIFIC GAS & ELECTRIC CO 07/31/2026 52337 113.91
CDA CLOSE LUMBER 07/15/2026 52259 15.14
CDA COLUSA COUNTY FARM SUPPLY, INC 07/15/2026 52261 478.09 CDA DERODA INC 07/15/2026 52264 13.92
CDA KANAPA YUNGVANITSAIT 07/15/2026 52270 5,000.00
CDA MID VALLEY AUTO CARE 07/15/2026 52274 918.97
CDA PACIFIC GAS & ELECTRIC CO 07/15/2026 52276 3,930.97 CDA BENNETT ENGINEERING SERVICES 07/31/2026 52307 25,977.03 CDA BEST BEST & KRIEGER LLP 07/31/2026 52308 393.60
CDA CA DEPT OF TRANSPORTATION 07/31/2026 52310 251.38
CDA EFUEL LLC 07/31/2026 52320 1,125.76
CDA GRANITE CONSTRUCTION COMPANY 07/31/2026 52323 5,883.13 CDA MESSENGER PUBLISHING GROUP 07/31/2026 52330 1,145.00 WWTP Support Agreement
May Solar
Solar for June
E Street Project
Streets Supplies
134
CITY OF WILLIAMS Check Register - Treasurer Rpt Page: 4 FINANCE DEPARTMENT 07/26 (07/31/2026) to 07/26 (07/31/2026) Sep 03, 2026 3:08PM Journal Payee or Description Date
Check
Number
Check
Amount
CDA MID VALLEY AUTO CARE 07/31/2026 52331 365.45
CDA PACE ENGINEERING, INC 07/31/2026 52335 1,810.00
CDA U S BANK NATIONAL ASSOCIATION 07/31/2026 52349 144.80 CDA AXON ENTERPRISE INC 07/15/2026 52250 16,945.03
CDA WILLIAMS FIRE PROTECTION 07/23/2026 52303 1,900.00
CDA SDRMA 07/15/2026 52286 3,845.96
CDA CALAFCO 07/31/2026 52311 1,617.00
CDA JOHN BENOIT 07/31/2026 52325 125.00
CDA LARKYN FEILER 07/31/2026 52326 8,262.86
CDA P. SCOTT BROWNE 07/31/2026 52334 2,229.00
Grand Totals: 1,325,765.37
WPD License Renewal
Bennet Engineering
16-606-308 E Street Project $17,213.22
23-606-600 On Call - Admin $131.50
23-606-600 On Call - Streets $8,763.81
23-606-600 On Call - Water $1,560.00
23-606-000 On Call - Sewer $1,864.50
23-606-000 On Call - Planning $65.75
23-606-000 On Call - LLAD $131.50
23-606B-02 Maverick Station $47,942.48

Pace Engineering
2290.16 Wastwater Collection System Impr. $5,940.00
2290.17 As Needed Services Original Scope $1,281.50
2290.17 As Needed Services - E Street $1,810.00
2290.17 DWSR - Water $4,855.75
2290.17 Comm. Project Funding $1,320.00
2290.20 As Needed Wastewater Operations $1,526.75

Pacific Gas & Electric Pmts In July
470 7 Street $20.49
711 Theatre $4,627.71
Ag Barn $74.81
Well 11 $7,182.43
LLAD $113.91
700 North St $2,194.73

PG&E Main Account
Pool $4,031.27
Bldgs $6,420.55
Parks $351.95
Water $729.03
Collections $255.58
WWTP $5,819.79
LLAD $1,574.20
Streets $3,930.97
135
City of Williams DATE: September 16, 2026
City Council ITEM #: 11.

Agenda Report CATEGORY: New Business
SUBJECT: Discussion Regarding Translation of City Council Agendas (SB 707) BACKGROUND:

Mayor Pro Tem Belmontes Leyva has requested that the City consider translating City Council meeting agendas to Spanish in light of the passage of Senate Bill 707 (SB 707).

Senate Bill 707 (SB 707) was signed into law in 2025 and makes updates to the Brown Act to expand public access to local government meetings. The law focuses on requirements pertaining to remote participation and improving access for the public, including language accessibility.

SB 707 includes provisions related to increasing public access to local government meetings, including translation of meeting agendas into applicable languages for certain jurisdictions.

These requirements took effect July 1, 2026.

DISCUSSION:

Staff has reviewed the requirements of SB 707 and determined that the translation requirement applies only to “eligible legislative bodies,” which are generally defined as cities with a population of 30,000 or more, or those meeting certain additional criteria.

Based on these thresholds, the City of Williams does not meet the criteria that would require translation of City Council agendas under SB 707 at this time.

Although the City is not required to provide translated agendas, Council may choose to do so. It was discussed to have City staff complete the translations internally. While this could help reduce direct translation costs, there are still other considerations. SB 707 allows for the use of digital or internal translation methods, but agencies are still responsible for the accuracy of the final document.

The City Attorney has indicated that any translated agenda would need to be reviewed to ensure legal accuracy and consistency with the posted English version, which would result in additional legal and professional service costs.

FISCAL IMPACT:

If Council directs staff to proceed, costs would include potential translation services and additional legal review by the City Attorney. The total cost will depend on the complexity of agenda materials.

RECOMMENDED ACTION:

Staff recommends that City Council discuss the request and provide direction on whether to implement translation of City Council agendas to Spanish.

Alternatively, Council may direct Staff to explore providing an informal Spanish summary of agenda accompanied by a disclaimer. An example may be: This Spanish translation is provided as a courtesy for informational purposes only. The English-language agenda is the official version. In the event of any discrepancy, inconsistency, or conflict between the English and Spanish versions, the English-language version shall prevail.” 136
Prepared by: Mariana Pineda, City Clerk
Submitted by: Yvonne Kimball, City Manager
137
City of Williams DATE: September 16, 2026
City Council ITEM: 12.

Agenda Report CATEGORY: New Business
SUBJECT: Award of Professional Services Agreement for Construction Management, Inspection, and Contract Administration Services – E Street Complete Streets Project

BACKGROUND
The E Street Complete Streets Project (“Project”) will reconstruct approximately 3,500 feet of E Street between Sunset Street and Husted Road, including ADA-compliant curb, gutter, and sidewalk; protected bike lanes; a landscaped median; three new roundabouts; pedestrian crossing improvements; storm drainage and utility relocation; and pavement rehabilitation. The Project is a designated Safe Routes to School corridor and is funded in part through the State of California Active Transportation Program (ATP) and is therefore subject to the Caltrans Local Assistance Procedures Manual (LAPM).

The City issued a Request for Proposals (“RFP”) for Construction Management, Inspection, and Contract Administration Services to support construction of the Project. During the proposal period, the City issued two addenda:
● Addendum No. 1 (July 2, 2026) – Revised the required consultant certification forms, clarified the cost proposal format consistent with LAPM Exhibit 10-H, and made other clarifications to the RFP.
● Addendum No. 2 (July 20, 2026) – Consolidated certain certification forms into a single Attachment B – Consultant Certifications, and added two optional, price-only tasks for the City’s future consideration: Optional Task 1 (Construction Management Services for the E Street Water and Sewer Improvements) and Optional Task 2 (Partnering).

The City received timely proposals from three firms: GFT Infrastructure, Inc.; TRC Engineers, Inc.; and Webster Engineering, Inc. A selection committee, consisted of the City Manager, the Finance Director, the Public Works Superintendent, and the Chief of Police, evaluated the proposals in accordance with the evaluation criteria and point values established in RFP Section VII, which weighted project understanding, relevant experience, key staff qualifications, staffing plan, references, and the Fee Proposal (15 of 100 available points). Based on that evaluation, the selection committee ranked Webster Engineering, Inc. (“WEI”) the highest proposer. The Finance Director and the City Manager then discussed scope details with WEI, and were able to reach a mutually agreed fee schedule.

DISCUSSION
WEI's proposal was distinguished by directly relevant local Complete Streets and municipal construction management experience — including a comparable corridor project involving the same railroad operator and the same likely construction contractor as this Project — and by the qualifications of its proposed Resident Engineer and Lead Inspector. The selection committee's recommendation 138
reflects a qualifications-based evaluation consistent with RFP Section VII and standard practice for the procurement of engineering and design-related services on federally-funded projects.

This recommendation is limited to the Base Scope of Services described in RFP Section III — construction management, inspection, contract administration, materials testing coordination, public coordination support, and project closeout for the Project as bid. Optional Task 1 and Optional Task 2 were submitted by proposers as separate, price-only items under Addendum No. 2 and were not scored as part of the evaluation criteria.

WEI's proposal identified a Base Scope fee of $1,203,800.00, prepared consistent with the LAPM Exhibit 10-H1 cost proposal format required by Addendum No. 1.

Fee Negotiations
Consistent with the qualifications-based selection process, staff entered into negotiations with WEI to establish a final scope of services and compensation.

WEI’s initial proposed fee for the base scope of services was $1,203,800. Through negotiations, the City Manager and the Finance Director secured a reduction to $979,840.50, representing a cost reduction of approximately $223,959.50.

Additional cost savings were achieved in the optional tasks. Original proposal for Optional Task 1 Water and Sewer Improvements was $290,500 and through negotiations there was a reduction of $167,563.65, reducing the cost to $122,936.35. Optional Task 2 had a cost reduction of $696.85, bringing the total from $18,250 to $17,553.15, resulting in a total potential contract value reduction of approximately $392,220, or 26 percent from the original proposal. The negotiated fee reflects changes to the staffing assumptions, adjustments task allocations, and cost savings from coordinating this project with the planned water and sewer improvements.

Specific adjustments included reductions in inspection and survey support, elimination of anticipated overtime, and modifications to public outreach efforts, while maintaining the core services necessary to ensure successful project delivery.

Staff has reviewed the negotiated scope and compensation and determined that the revised proposal is reasonable, cost-effective, and consistent with the City’s project requirements.

Recommended Action: Staff finds that Webster Engineering, Inc. is the most qualified firm to provide Construction Management, Inspection, and Contract Administration Services for the Project and recommends that the City Council select WEI and authorize the City Manager to finalize negotiations and execute a Professional Services Agreement accordingly for the Base Scope of Services and all optional tasks, as determined necessary to successfully complete the project in the amount not to exceed $1,120,330.

FISCAL IMPACT
The Project is funded in part through the ATP, with local match funding budgeted for the E Street Complete Streets Project. No additional General Fund appropriation is requested at this time. 139

RECOMMENDATION
Staff recommends the City Council:
● Adopt Resolution No. 2026-31, selecting Webster Engineering, Inc. as the most qualified firm to provide Construction Management, Inspection, and Contract Administration Services for the Base Scope of Services and all Optional Tasks of the E Street Complete Streets Project, and authorizing the City Manager to execute a Professional Services Agreement accordingly in a form approved by the City Attorney.

Prepared and Submitted by: Dave Harden, PE, City Engineer; Rex Greenbaum, Finance Director Reviewed by: Yvonne Kimball, City Manager
Attachments:
● Resolution No. 2026-31Selecting Webster Engineering, Inc. and Authorizing Execution of a Professional Services Agreement – E Street Complete Streets Project .
140
RESOLUTION NO. 2026-31

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILLIAMS SELECTING WEBSTER ENGINEERING, INC. AS THE MOST QUALIFIED FIRM AND AUTHORIZING THE CITY

MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT FOR CONSTRUCTION

MANAGEMENT, INSPECTION, AND CONTRACT ADMINISTRATION SERVICES FOR THE E STREET COMPLETE STREETS PROJECT.

WHEREAS, the City of Williams (“City”) is undertaking the E Street Complete Streets Project (“Project”), which entails the reconstruction of E Street between Sunset Street and Husted Road, including ADA-compliant curb, gutter, and sidewalk, protected bike lanes, a landscaped median, three new roundabouts, pedestrian crossing improvements, storm drainage and utility relocation, and pavement rehabilitation; and WHEREAS, the Project is funded in part through the State of California Active Transportation Program (ATP) and is subject to the Caltrans Local Assistance Procedures Manual (“LAPM”); and WHEREAS, the City issued a Request for Proposals (“RFP”) for Construction Management, Inspection, and Contract Administration Services for the Project, which RFP was subsequently amended by Addendum No. 1, dated July 2, 2026, and Addendum No. 2, dated July 20, 2026; and WHEREAS, the City received timely proposals from three firms — GFT Infrastructure, Inc.; TRC Engineers, Inc.; and Webster Engineering, Inc. — in response to the RFP, as amended; and WHEREAS, a selection committee evaluated the proposals in accordance with the evaluation criteria set forth in RFP Section VII, and determined that Webster Engineering, Inc. (“WEI”) submitted the most qualified proposal to perform the required services; and
WHEREAS, WEI's proposal identified a negotiated fee for the Base Scope of Services in the amount of $979,840.50, Optional Task 1 for $ 122,936.35 and Optional Task 2 for $17,553.15 for a total potential contract value of $1,120,330.00 prepared consistent with the LAPM Exhibit 10-H1 cost proposal format required by Addendum No. 1; and
WHEREAS, the City Council has reviewed the staff report and the selection committee's recommendation, and desires to select WEI as the most qualified firm and authorize the execution of a Professional Services Agreement accordingly;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WILLIAMS DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Recitals. The above recitals are true and correct and are incorporated herein by reference.

Section 2. Selection. The City Council hereby selects Webster Engineering, Inc. as the most qualified firm to provide Construction Management, Inspection, and Contract Administration Services for the E Street Complete Streets Project, based on the recommendation of the selection committee.

Section 3. Scope of Award. This selection and the authorization granted herein apply to the Base Scope of Services described in Section III of the RFP, Optional Task 1, and Optional Task 2.

Section 4. Execution Authority. The City Manager, or designee, is hereby authorized to execute the final scope, schedule, and compensation terms with Webster Engineering, Inc. for the Base Scope of Services, Optional Task 1, Optional Task 2 and to execute a Professional Services Agreement on behalf of the City, in a form approved by the City Attorney, provided that the final compensation is consistent with the fee methodology set forth in the RFP, as amended, and is within budgeted appropriations available for this purpose. 141
Section 5. Further Actions. Staff is directed to take all actions necessary to implement this Resolution.

Section 6. Effective Date. This Resolution shall take effect immediately upon adoption.

PASSED AND ADOPTED by the City Council of the City of Williams at a regular meeting held on the 16th day of September, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________________________________
Kate Dunlap, Mayor
ATTEST:
_______________________________________
City Clerk, City of Williams
APPROVED AS TO FORM:
_______________________________________
Andreas Booher, City Attorney
142
City of Williams DATE: September 16, 2026
City Council ITEM: 13.

Agenda Report CATEGORY: New Business
SUBJECT: Award of Construction Contract – Wastewater Collection System Improvement Project (City Project No. 04-2026, City Contract No. 04-26)

BACKGROUND
The Wastewater Collection System Improvement Project ("Project") will replace approximately 8,300 feet of deficient wastewater pipeline mains and laterals. The Project is funded through the State Water Resources Control Board (SWRCB) Clean Water State Revolving Fund (CWSRF). On January 17, 2025, Amendment 1 of Construction Funding Grant Agreement No. SWRCB D2001020, Project No. C-06-8225-210 was executed making available $5,458,000 in grant funds for construction. Under the terms of that agreement, construction must be completed no later than September 1, 2029.

Following completion of the plans, specifications, and engineer's construction cost estimate, the City advertised the Project for competitive construction bids in accordance with applicable federal, state, and local requirements.

The City publicly opened bids for City Contract No. 04-26 on Thursday, August 6, 2026, at 2:00 p.m. at Williams City Hall. Seven bids were received. Ranger Pipelines, Inc. ("Ranger") submitted the lowest base bid, as summarized below:

Bidder Base Bid Amount
Ranger Pipelines, Inc. — LOWEST RESPONSIVE BIDDER $3,567,877.00 SnL Group, Inc. $3,699,989.00
Marques General Engineering, Inc. $3,705,000.00
Steve P. Rados, Inc. $3,973,000.00
Site Work Solutions $4,298,560.20
Tungsten Engineering Contractors $6,839,074.00
Mountain Cascade, Inc. $6,951,898.00

PROJECT SCOPE AND BID REVIEW
Base bid of the Project will upgrade a section of existing wastewater collection system mains, manholes, and laterals from B Street at the railroad crossing to the intersection of D and 11th Streets, and a section from the alley on D Street between 6th and 7th Steets to the intersection of I Street and the alley between 8th Street and Redinger Way.

Due to limited grant funding available, four additive alternates were included in the bid as follows:
• Additive Alternate A - Will upgrade a section of existing wastewater collection system mains, manholes, and laterals from F Street at the alley between 8th and 9th Streets to 11th Street and the alley between E and G Streets.
• Additive Alternate B – Rehabilitation of five deficient manholes throughout the City. 143
• Additive Alternate C – Installation of Aggregate Base for the base bid. • Additive Alternate D – Installation of Aggregate Base for Additive Alternate B.

Recommended Action:

Based on the foregoing, staff finds that Ranger submitted the lowest responsive and responsible bid for City Contract No. 04-26 and recommends that the City Council make the responsiveness and responsibility findings set forth in the accompanying resolution, and award the construction contract to Ranger for the Base Bid plus Additive Alternate B in the amount of $3,608,377.00.

FISCAL IMPACT
The Ranger base bid plus Additive Alternate B of $3,608,377.00 is within the $5,458,000 CWSRF grant agreement, leaving balance of $1,849,623.00. This remaining balance is require for Project construction administration costs and construction contingency. If adequate available contingency funds remain towards the end of construction, other additive alternates will be added to the construction contract if possible.

No City funds are required for completion of this Project, including construction contingency. Award information, including the executed contract, will be submitted to CWSRF promptly following City Council action, consistent with their requirements.

RECOMMENDATION
Staff recommends the City Council:
● Adopt Resolution No. 26-32, finding Ranger to be the lowest responsive and responsible bidder for City Contract No. 04-26; and awarding the construction contract to Ranger for the base bid plus Additive Alternative B in the amount of $3,608,377.00;
● Authorize the City Manager to execute the construction contract and related documents on behalf of the City, subject to Ranger’s timely submission of the required performance bond, payment bond, insurance certificates, and executed contract agreement;
● Authorize the City Manager, or designee, to execute and administer the construction contract and other documents necessary to implement the Project and funding agreement.

Prepared and Submitted by: Laurie McCollum, PE, PACE Engineering, Inc.

Reviewed by: Yvonne Kimball, City Manager
Attachments:
● Resolution No. 26-32 Awarding Construction Contract – City Contract No. 04-26 ● Recommendation of Award from PACE, dated August 31, 2026 144
RESOLUTION NO. 26-32

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILLIAMS FINDING RANGER PIPELINES, INC. TO BE THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER; AND

AWARDING THE CONSTRUCTION CONTRACT FOR THE WASTEWATER COLLECTION SYSTEM IMPROVEMENT PROJECT (CITY PROJECT NO. 04-2026; CITY CONTRACT NO. 04-26) WHEREAS, the City of Williams ("City") is undertaking the Wastewater Collection System Improvement Project ("Project"), which will construct upgrade a section of existing wastewater collection system mains, manholes, and laterals from B Street at the railroad crossing to the intersection of D and 11th Streets, and a section from the alley on D Street between 6th and 7th Steets to the intersection of I Street and the alley between 8th Street and Redinger Way; and
WHEREAS, the Project is funded through the State Water Resources Control Board (SWRCB) Clean Water State Revolving Fund (CWSRF), and on January 17, 2025 Amendment 1 of Construction Funding Grant Agreement No. SWRCB D2001020, Project No. C-06-8225-210 was executed, making available $5,458,000 in grant funds for construction; and
WHEREAS, the City advertised City Contract No. 04-26 for competitive construction bids in accordance with applicable federal, state, and local requirements; and
WHEREAS, the City publicly opened bids for City Contract No. 04-26 on August 6, 2026, at 2:00 p.m. at Williams City Hall, at which time seven bids were received, with Ranger Pipelines, Inc. ("Ranger") submitting the lowest base bid in the amount of $3,567,877.00;
WHEREAS, after review of the bids and the qualifications of the bidders, Ranger was determined to be the successful and responsive bidder for the Project; and
WHEREAS, the City Council has determined that awarding the construction contract to Ranger for the base bid plus Additive Alternate B in the amount of $3,608,377.00 is in the best interest of the City and will allow the Project to proceed; and
WHEREAS, sufficient funds have been appropriated and are available for the Project, subject to any applicable funding requirements, grant requirements, and contract conditions.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WILLIAMS DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Recitals. The above recitals are true and correct and are incorporated herein by reference.

Section 2. Award of Contract. The City Council hereby awards City Contract No. 04-26 for the Wastewater Collection System Improvement Project to Ranger Pipelines, Inc. for the base bid amount plus Additive Alternate B in the amount of $3,608,377.00, subject to the terms and conditions of the contract documents .

Section 3. Authorization to Execute. The City Manager, or designee, is hereby authorized to execute the construction contract and all related documents on behalf of the City, subject to Ranger’s timely submission of the required executed contract agreement, performance bond, payment bond, and certificates of insurance in accordance with the Contract Documents.

Section 4. Contract Administration. The City Manager is authorized to administer the contract and take such actions as are reasonably necessary to implement the Project in accordance with the approved plans, specifications, contract documents, applicable laws, and available funding.

Section 5. Effective Date. This Resolution shall take effect immediately upon adoption. 145
PASSED AND ADOPTED by the City Council of the City of Williams at a regular meeting held on the 16th day of September, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________________________
Kate Dunlap, Mayor
ATTEST:
_______________________________
Mariana Pineda, City Clerk
APPROVED AS TO FORM:
_______________________________
Andreas Booher, City Attorney
146
August 31, 2026
2290.16
Yvonne Kimball, City Manager
City of Williams
810 E Street
Williams, CA 95987
[email protected]
Members of the City Council:

Subject: WASTEWATER COLLECTION SYSTEM IMPROVEMENT PROJECT The bid opening for the subject project was held on August 6, 2026. PACE Engineering, Inc. (PACE) has reviewed the bids received, and enclosed is the Bid Summary.

The low bidder on the project was Ranger Pipelines, Inc. with a total base bid amount of $3,567,877. PACE has examined the low bidder’s proposal and finds it to be correct and acceptable. In consultation with City of Williams (City) staff, it is recommended that the City include Additive Alternate B in the Contract, with a bid amount of $40,500. Therefore, it is recommended that the City award the Contract to Ranger Pipelines, Inc. for the base bid and Additive Alternate B for a total Contract amount of $3,608,377.

Once PACE is notified that the Contract has been awarded, a Notice of Award will be sent to the Contractor together with the Agreement and Bond forms. Instructions will be included for the Contractor to sign and complete the necessary documents and return them to PACE for review.

PACE will then forward them to the City for signature, which will constitute execution of the Contract.

Sincerely,
Laurie McCollum
Project Manager
Enclosure
c: Rex Greenbaum, City of Williams, [email protected] Gabriel Berzamina, State Water Resources Control Board, [email protected] Wesley Miller, PACE Engineering, Inc., [email protected] M:\Jobs\2290 City of Williams\2290.16 Wastewater Collection System Improvements\15 Bid-Award\07 Award\Recommendation of Award - Ltr.docx 147
PROJECT: Wastewater Collection System Improvement Project OWNER: City of Williams
BID DATE: 8/6/2026
5155 Venture Parkway, Redding, CA 96002 JOB NO: 2290.16Ph: 530.244.0202

UNIT PRICE TOTAL COST UNIT PRICE TOTAL COST UNIT PRICE TOTAL COST UNIT PRICE TOTAL COST UNIT PRICE TOTAL COST UNIT PRICE TOTAL COST UNIT PRICE TOTAL COST 1 Sheeting, Shoring, and Bracing (Sheets C2.0 though C3.7), excluding work covered by Bid Items 6 through 12, complete 1 LS
$140,000.00 $75,000.00 $129,135.00 $50,000.00 $60,000.00 $7,126.17 $419,074.00 2 Materials on Hand (Sheets C2.0 through C3.7), excluding work covered by Bid Items 6 through 12, complete 1 LS
$450,000.00 $425,000.00 $0.00 $690,000.00 $500,117.00 $660,000.00 $500,000.00 3 North Williams Pipeline Improvements - Construction of all work on Sheets C2.0 through C2.12, excluding work covered by Bid Item 11, complete 1 LS
$2,126,000.00 $1,995,000.00 $2,071,174.00 $1,819,989.00 $3,791,781.00 $2,325,708.02 $3,370,000.00 4 South Williams Pipeline Improvements - Construction of all work on Sheets C3.0 through C3.7, excluding work covered by Bid Item 11, complete 1 LS
$1,238,000.00 $1,195,000.00 $1,352,568.00 $1,115,000.00 $2,525,000.00 $1,251,856.01 $2,500,000.00 5 Cost adder for additional trench stabilization effort, complete 1,000 LF $19.00 $19,000.00 $15.00 $15,000.00 $15.00 $15,000.00 $25.00 $25,000.00 $75.00 $75,000.00 $53.87 $53,870.00 $50.00 $50,000.00 TOTAL BASIS OF BID: $3,973,000.00 $3,705,000.00 $3,567,877.00 $3,699,989.00 $6,951,898.00 $4,298,560.20 $6,839,074.00 ADDITIVE ALTERNATE A - SHEETS C4.0 THROUGH C4.3
6 Sheeting, Shoring, and Bracing for Additive Alternate A, complete 1 LS $6,900.00 $25,000.00 $44,820.00 $20,000.00 $22,000.00 $3,385.55 $85,000.00 7 Materials on Hand for Additive Alternate A, complete 1 LS $30,000.00 $40,000.00 $0.00 $65,000.00 $85,000.00 $57,000.00 $50,000.00 8 Construction of all work on Sheets C4.0 through C4.3 - STA 110+00 to STA 125+72, excluding work covered by Bid Item 12, complete 1 LS
$350,000.00 $535,000.00 $627,480.00 $215,000.00 $833,534.00 $525,010.78 $1,160,000.00 TOTAL ADDITIVE ALTERNATE A: $386,900.00 $600,000.00 $672,300.00 $300,000.00 $940,534.00 $585,396.33 $1,295,000.00

ADDITIVE ALTERNATE B - MANHOLE REHABILITATION
9 Sheeting, Shoring, and Bracing for Additive Alternate B, complete 1 LS $2,900.00 $1,500.00 $500.00 $20,000.00 $2,000.00 $1,642.99 $10,000.00 10 Construction of all work of Detail 4 on Sheet C1.1 - Additive Alternate B - Manhole Rehabilitation Schedule, complete 1 LS
$92,000.00 $62,500.00 $40,000.00 $375,000.00 $78,000.00 $108,156.44 $85,000.00 TOTAL ADDITIVE ALTERNATE B: $94,900.00 $64,000.00 $40,500.00 $395,000.00 $80,000.00 $109,799.43 $95,000.00

ADDITIVE ALTERNATE C - INSTALLATION OF AGGREGATE BASE FOR BASE BID 11 Provide and place Class II aggregate base as shown on Sheets C2.2, C2.5, C2.6, C2.8, C2.10, C2.11, C2.12, C3.2, C3.3, C3.4, C3.5, C3.6, and C3.7, excluding work covered by Bid Items 1 through 5, complete 1 LS
$136,000.00 $120,000.00 $220,000.00 $300,000.00 $140,000.00 $328,599.88 $185,000.00 TOTAL ADDITIVE ALTERNATE C: $136,000.00 $120,000.00 $220,000.00 $300,000.00 $140,000.00 $328,599.88 $185,000.00

ADDITIVE ALTERNATE D - INSTALLATION OF AGGREGATE BASE FOR ADDITIVE ALTERNATE C 12 Provide and place Class II aggregate base as shown on Sheets C4.2 and C4.3, excluding work covered by Bid Items 6 through 8, complete 1 LS
$19,000.00 $21,500.00 $45,000.00 $150,000.00 $19,807.00 $43,787.09 $35,000.00 TOTAL ADDITIVE ALTERNATE D: $19,000.00 $21,500.00 $45,000.00 $150,000.00 $19,807.00 $43,787.09 $35,000.00 BASE BID RANK: 4 31275 6
SUBCONTRACTORSManhole Rehab National Coating & Lining Mason Painting Green Infrastructure SolutionN/A N/A N/A Mason Painting Paving Lamon Construction N/A N/A Isringhausen Paving & Gradin N/A Vintage Paving Company N/A CIPP Insituform Express Sewer & Drain Christian Brothers Lining Nor-Cal Pipeline Services Christian Brothers Lining Nor-Cal Pipeline Services N/A Saw Cutting N/A W.C. Maloney N/A N/A N/A N/A N/A
Striping N/A N/A Specialized Pavement Markin N/A N/A Specialized Pavement MarkinN/A Trucking N/A N/A JABI Trucking, Inc. N/A N/A N/A N/AField Coating N/A N/A N/A H&R Plumbing Techno Coatings N/A N/A SWPPP N/A N/A N/A Vestra Resources N/A N/A N/A
Backfill N/A N/A N/A Backcountry Excavating N/A N/A N/A Utility Trenching N/A N/A N/A Reed Construction N/A N/A N/A Bypass Pumping N/A N/A N/A Multiple Pump Services N/A N/A N/A Traffic Control N/A N/A N/A Statewide Traffic Safety & SigN/A N/A AP Traffic Services CCTV Inspection N/A N/A N/A N/A N/A APS Environmental N/A

BID SUMMARY
Steve P. Rados, Inc. QTY UNIT BID Marques General Engineering, Inc. Ranger Pipelines, Inc. SnL Group, Inc. ITEM DESCRIPTION Mountain Cascade, Inc. Site Work Solutions Tungsten Engineering Contractors M:\Jobs\2290 City of Williams\2290.16 Wastewater Collection System Improvements\15 Bid-Award\05 Bid\2290.16 Bid Summary & Basis of Bid.xls 148
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City of Williams DATE: September 16, 2026
City Council ITEM #: 14.

Agenda Report CATEGORY: New Business
SUBJECT FY2024 – 2025 Audit and Single Audit Report, Annual Reports on Transaction and Use Tax and Transient Occupancy Taxes
BACKGROUND:

MUN CPAs, has completed the FY 2024-2025 audit of the City of Williams. This was the second consecutive year MUN CPAs has audited the City of Williams. The audit and the audited financial statements were completed effective July 29, 2026. Included with this report is the presentation of the annual reports on Transaction and Use 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, 2025. This is the seventeenth consecutive unqualified report the City of Williams has received since FY2009.

Also included with this years report is a Single Audit report for the year ending June 30, 2025. This report is required to be done every fiscal year when the City receives Federal grant awards of $750,000 or more. For the fiscal year ending June 30, 2025, the City of Williams also received a clean opinion on the single audit report.

Financial Statements
The major financial highlights contained in the auditor’s report are detailed on pages 4 - 11 in Management’s Discussion and Analysis.

General Fund
For the year ending June 30, 2025, the City’s unrestricted General Fund equity totaled $6,035,850. When netted off against the Street Fund deficit position of $1,261,520, the remaining equity totaled $4,774,330.

This equity represents a healthy 74% of budgeted general fund expenditures including transfers during the year. The net General Fund reserves decreased by 33.4% or $2,390,369 from the $7,164,699 from the previous year. This decrease was attributed to the general fund portion of the CalPERS Unfunded Accrued Liability Payoff totaling $2,817,856. The City’s General Fund equity is detailed on page 16 of the report.

Findings and Recommendations / Report on Internal Controls Over Financial Reporting For the fiscal year ended June 30, 2025, MUN CPAs reported two findings related to internal control and accounting procedures. This was the firm’s second year serving as the City’s independent auditors, and additional review procedures were performed as part of the transition. The two 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.
149
These findings, which are detailed on pages 9 – 12 of the Single Audit report, are summarized below:

Prior Year Findings with Updated Status
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.

Finding 2024-001 Loans Receivable was implemented and cleared by the auditors as City is now properly accounting for deferred inflows with their loans.

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 verify that all receivables and related revenues are accurately captured going forward.

Finding 2024-002 Grant and Tax Receivable Accruals was implemented and cleared by the auditors.

Finding 2024-003 – Net Pension Liability Calculation
The auditors noted a classification issue related to the City’s CalPERS unfunded accrued liability (UAL) payment. Regular monthly CalPERS 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 CalPERS distributions to ensure all pension-related expenses are appropriately classified in future reporting periods.

Finding 2024-003 – Net Pension Liability Calculation was noted as partially implemented and included with Current Year Finding 2025-001.

Current Year Findings
Finding 2025-001 - Net Pension Liability Calculation
This was a carryover finding 2024-003 that was discussed above. The City notes that a portion of retirement expense was being reported as personnel expenditures. The City has corrected the payroll allocation setup to ensure proper pension reporting.

Finding 2025-002 – Long Term Debt
The auditors noted a long term liability that had been recorded in a special revenue fund. This was for the Morning Star loan recorded in the Street Fund. The proceeds had been included as a long term debt in accordance with the accrual basis of accounting rather than the modified accrual basis of accounting.

Adjustments were made to remove the long term liability from the governmental fund and reflect loan proceeds and debt service principal expenditures. This has been corrected by the City. 150

TRANSACTION AND USE TAXES
Sales taxes are detailed on page 13 of the financial statements. When looking at Sales taxes, it is helpful to look at the changes over multiple years as detailed below:

FY2025 FY2024 FY2023
$ Change
One Year
from
FY2024
%
Change
One
Year
From
FY2024
$ Change
Two Years
from
FY2023
% Change
Two Years
from
FY2023
Sales
Taxes $1,753,323 $1,829,516 $2,428,890 ($76,193) (4.2%) ($675,567) (27.8%) Sales taxes for the year ending June 30, 2025, decreased by $76,193 or 4.2% from FY2024. Looking at sales taxes over a two-year period we can see that sales taxes decreased by $675,567 or 27.8% from FY2023. Overall, the large decrease in sales taxes is attributed to a decline in spending from the previous two years which had been temporarily increased by spending 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, 2025, totaled $430,276, a decrease of $71,418 or

14.2% from the $501,694 received in FY2024. Looking back over a two-year period, we see that transient occupancy taxes have decreased by $98,008 or 18.6% from the $528,284 received in FY2023.

The larger FY2023 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 and FY2023 people tended to travel more as a release to being cooped up at home. The leveling off in FY2024 and FY2025 is due to normalizing travel patterns more consistent with pre-pandemic trends. The transient occupancy taxes are detailed on page 13 of the financial statements.

RECOMMENDED ACTION
Staff recommends that City Council reviews and accepts the FY 2024-2025 audited financial statements and single audit reports 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 and Submitted by: Rex Greenbaum, Finance Director Reviewed by: Yvonne Kimball, City Manager
Attachment(s):
• Audited Financial Statements for fiscal year ended June 30, 2025 • Single Audit and Related Reports for fiscal year ended June 30, 2025 151

CITY OF WILLIAMS

FINANCIAL STATEMENTS
AND

INDEPENDENT AUDITOR'S REPORT

FOR THE YEAR ENDED
JUNE 30, 2025
MUN CPAs, LLP
1760 Creekside Oaks Drive, Suite 160
Sacramento, California 95833
152

CITY OF WILLIAMS

ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025

TABLE OF CONTENTS
Page
INTRODUCTORY SECTION:

Elected and Appointed Officials i
FINANCIAL SECTION:

Independent Auditor's Report 1 - 3
Management's Discussion and Analysis 4 - 11
Basic Financial Statements:

Government-wide Financial Statements
Statement of Net Position 12
Statement of Activities 13
Fund Financial Statements
Governmental Funds
Balance Sheet 14
Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 15
Statement of Revenues, Expenditures, and Changes in Fund Balances 16 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities 17
Proprietary Funds
Statement of Net Position 18
Statement of Revenues, Expenses, and Changes in Net Position 19 Statement of Cash Flows 20 - 21
Fiduciary Funds
Statement of Fiduciary Net Position 22
Statement of Changes in Fiduciary Net Position 23
Notes to Basic Financial Statements 24 - 48
Required Supplementary Information:

Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - General Fund 49
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - CDBG Fund 50
153

CITY OF WILLIAMS

ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025

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 51
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual - Streets Fund 52
City Pension Plan - Schedule of the City's Proportionate Share of the Net Pension Liability 53 - 54 City Pension Plan - Schedule of Contributions 55 - 56
Notes to Budgetary Comparison Schedules 57
Combining and Individual Fund Financial Statements and Schedules:

Non-Major Governmental Funds:

Narrative Summary 58
Combining Balance Sheets 59 - 61
Combining Statements of Revenues, Expenditures, and Changes in Fund Balances 62 - 64 Budgetary Comparison Schedules:

Traffic Safety 65
Lighting and Landscaping 66
Recycling Grant 67
Law Enforcement Grant 68
Internal Service Funds
Narrative Summary 69
Combining Statement of Net Position 70
Combining Statement of Revenues, Expenses, and Changes in Net Position 71 Combining Statement of Cash Flows 72
154

INTRODUCTORY SECTION
155

CITY OF WILLIAMS

ELECTED AND APPOINTED OFFICIALS
JUNE 30, 2025

ELECTED OFFICIALS
Kate Dunlap Mayor
Maria Belmontes-Leyva Mayor Pro Tempore
Dan Parsons Council Member
Alfred Sellers, Jr. Council Member
John J. Troughton, Jr. Council Member
Mariana Pineda City Clerk

EXECUTIVE STAFF
Yvonne Kimball City Manager
Chris Miller Police Chief
Rex Greenbaum Finance Director
This listing is a reference of the structure at the time of production. i
156

FINANCIAL SECTION
157

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, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

U
MUN CPAs, LLP 1760 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 www.muncpas.com GLENDALE•ROSEVILLE•SACRAMENTO•ZEPHYR COVE•KAUAI
158
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information, and pension related schedules as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
2 159
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 July 29, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Sacramento, California
July 29, 2026
3 MUNCPAsLIP
160

CITY OF WILLIAMS

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
As management of the City of Williams (the City), we offer readers this discussion and analysis of the City's financial performance for the fiscal year ended June 30, 2025. We encourage readers to consider the information presented 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 $4,346,368. Of this amount, $946,929 is attributable to governmental activities and $3,399,439 is attributable to business-type activities. · Governmental revenues include program revenues of $3,921,740, general revenues of $9,453,660, and transfers out of $2,091,920 for a total of $11,283,480. Governmental expenses were $10,336,551. · Business-type revenues include program revenues of $5,378,808, general revenues of $159,870, and transfers in of $2,091,920 for a total of $7,630,598. Business-type expenses were $4,231,159.

Fund Level:
· The City's governmental funds reported combined fund balances of $7,325,564, which is a decrease of $4,273,149 from the prior year. $4,774,330 of the combined fund balances, or 65%, is available to meet the City's current and future needs (unassigned fund balance). · Governmental fund revenues were $10,547,651, an increase of $3,163,374 from the prior year balance of $7,384,277. This increase is primarily attributable to grant revenues received totaling $3,104,984. A majority of the grant revenues were attributed to the HOME grant funding which is being used to provide funding for construction of a low-income senior housing complex.
· Governmental fund expenditures were $12,958,865, an increase of $5,904,271 from the prior year balance of $7,054,594. Notable increases included $2,817,587 for public safety primarily attributed to the payment to CalPERS to pay down the unfunded liability, and $2,585,985 for community development primarily attributed to the funding provided for the construction of the low-income senior housing complex noted above.

General Fund:
· The fund balance in the City's General fund totaled $6,035,850, which is a decrease of $2,780,303 from the prior year balance of $8,816,153.
· General fund revenues were $6,128,316, a decrease of $111,781 from the prior year balance of $6,240,097. This was primarily attributed to a decrease of $102,490 in interest income which was impacted by decreases to the interest rates. 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 $8,410,221, an increase of $3,327,744 from the prior year balance of $5,082,477. This increase was primarily attributed to the CalPERS payments to pay down the unfunded liability.

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.

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 longterm view of the City’s finances. 4 161

CITY OF WILLIAMS

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
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 are 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.

Proprietary funds
Proprietary funds are generally used to account for services for which the City charges customers - either outside customers, or internal units of departments within the City. Proprietary funds provide the same type of information as shown in the government-wide financial statements, only in more detail. Proprietary funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses proprietary funds to account for the Water and Sewer funds and internal service funds. 5 162

CITY OF WILLIAMS

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
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
This report presents required supplementary information concerning the City’s progress in its obligation to provide pension benefits to its employees, and budgetary comparison information for the City's general fund and major special revenue funds as well as a description of the City's accounting policies with regard to the annual budget.

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.

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, 2025 and 2024
(in thousands)
Governmental Activities Business-Type Activities Total Government 2025 2024
Net
Change 2025 2024
Net
Change 2025 2024
Net
Change
ASSETS
Current and other
assets $ 17,168 $ 19,429 $ (2,261) $ 2,779 $ 2,519 $ 260 $ 19,947 $ 21,948 $ (2,001) Capital assets 13,125 13,152 (27) 28,557 27,219 1,338 41,682 40,371 1,311 Total Assets 30,293 32,581 (2,288) 31,336 29,738 1,598 61,629 62,319 (690)

DEFERRED

OUTFLOWS OF
RESOURCES 4,190 1,348 2,842 1,931 621 1,310 6,121 1,969 4,152

LIABILITIES
Current and other
liabilities 755 1,364 (609) 872 904 (32) 1,627 2,268 (641) Long-term liabilities 3,094 2,809 285 9,050 9,477 (427) 12,144 12,286 (142) Total Liabilities 3,849 4,173 (324) 9,922 10,381 (459) 13,771 14,554 (783)

DEFERRED INFLOWS
OF RESOURCES 67 136 (69) 31 63 (32) 98 199 (101)

NET POSITION
Net investment in
capital assets 12,703 12,940 (237) 20,338 18,592 1,746 33,041 31,532 1,509 Restricted 2,551 4,447 (1,896) 932 - 932 3,483 4,447 (964) Unrestricted 15,313 12,233 3,080 2,044 1,323 721 17,357 13,556 3,801 Total Net Position $ 30,567 $ 29,620 $ 947 $ 23,314 $ 19,915 $ 3,399 $ 53,881 $ 49,535 $ 4,346 6 163

CITY OF WILLIAMS

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
The City's net position amounted to $53.9 million as of June 30, 2025, an increase of approximately $4 million compared to the fiscal year ended June 30, 2024. 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 $33 million as of June 30, 2025.

Restricted net position of $3 million represents resources subject to external restrictions as to how they may be used.

The Governmental Activities unrestricted net position is $15 million. The Business-type Activities unrestricted net position of $2 million reflects the resources available for capital replacement.

Changes in Net Position
For the Years Ended June 30, 2025 and 2024
(in thousands)
Governmental Activities Business-Type Activities Total Government 2025 2024
Net
Change 2025 2024
Net
Change 2025 2024
Net
Change

REVENUES
Program revenues
Charges for services $ 763 $ 358 $ 405 $ 3,803 $ 3,543 $ 260 $ 4,566 $ 3,901 $ 665 Operating grants and
contributions 3,159 241 2,918 45 202 (157) 3,204 443 2,761 Capital grants and
contributions - - - 1,530 3,003 (1,473) 1,530 3,003 (1,473) General revenues
Taxes 5,735 5,779 (44) - - - 5,735 5,779 (44)
Other revenues 3,719 1,323 2,396 160 86 74 3,879 1,409 2,470 Transfers (2,092) 240 (2,332) 2,092 (240) 2,332 - - -
Total Revenues 11,284 7,941 3,343 7,630 6,594 1,036 18,914 14,535 4,379

EXPENSES
Governmental activities
General government 1,903 1,253 650 - - - 1,903 1,253 650 Public safety 3,716 3,297 419 - - - 3,716 3,297 419
Public works 1,289 1,519 (230) - - - 1,289 1,519 (230)
Community development 3,030 701 2,329 - - - 3,030 701 2,329 Parks and recreation 399 638 (239) - - - 399 638 (239)
Water - - - 1,556 1,461 95 1,556 1,461 95
Sewer - - - 2,675 2,485 190 2,675 2,485 190
Total Expenses 10,337 7,408 2,929 4,231 3,946 285 14,568 11,354 3,214 Change in net position 947 533 414 3,399 2,648 751 4,346 3,181 1,165 Net position - beginning of year 29,620 29,087 533 19,915 17,267 2,648 49,535 46,354 3,181 Net position - end of year $ 30,567 $ 29,620 $ 947 $ 23,314 $ 19,915 $ 3,399 $ 53,881 $ 49,535 $ 4,346 Governmental Activities
Governmental activities net position increased to $30,566,622 during fiscal year 2024-25. · Taxes provided $5,734,604 or 51% of total governmental activities revenues. · Charges for services and operating grants provided $3,921,740 or 35% of total governmental activities revenues.
· Other revenues provided $3,719,056 or 33% of total governmental activities revenues. 7 164

CITY OF WILLIAMS

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
Business-Type Activities
Business-type activities net position increased by $3,399,439 to $23,314,915 during fiscal year 2024-25. $2,370,064 of the increase is attributable to the Water fund and $1,029,375 is attributable to 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.

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, 2025 and 2024
(in thousands)
2025 2024
Amount % of Total Amount % of Total Variance % Change
Property taxes $ 1,703,094 16.1 % $ 1,604,586 21.7 % $ 98,508 6.1 % Sales taxes 1,753,323 16.6 % 1,829,516 24.8 % (76,193) (4.2)% Local taxes 1,334,487 12.7 % 1,350,945 18.3 % (16,458) (1.2)% Motor vehicle in-lieu 645,465 6.1 % 618,711 8.4 % 26,754 4.3 % Transient occupancy 430,276 4.1 % 501,694 6.8 % (71,418) (14.2)% Franchise fees 320,316 3.0 % 305,779 4.1 % 14,537 4.8 % Business license fees 70,666 0.7 % 63,857 0.9 % 6,809 10.7 % Charges for services 627,669 6.0 % 305,588 4.1 % 322,081 105.4 % Intergovernmental 3,104,984 29.4 % 241,069 3.3 % 2,863,915 1,188.0 % Interest 353,031 3.4 % 527,404 7.1 % (174,373) (33.1)%
Other revenues 204,340 %1.9 35,128 %0.5 169,212 %481.7
$ 10,547,651 %100.0 $ 7,384,277 %100.0 $ 3,163,374 %42.8 The $3,163,374 increase in governmental fund revenues can be primarily attributed to the following:
· Charges for services increased by $322,081, primarily due to increased development resulting in higher impact fees.
· Intergovernmental revenues increased by $2,863,915 due to increased grant revenues. · Interest decreased by $174,373 primarily due to decreasing interest rates. 8 165

CITY OF WILLIAMS

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
Expenditures by Function
Governmental Funds
For the Years Ended June 30, 2025 and 2024
(in thousands)
2025 2024
Amount % of Total Amount % of Total Variance % Change
General government $ 1,267,775 9.8 % $ 615,512 8.7 % $ 652,263 106.0 % Public safety 5,609,782 43.3 % 2,792,195 39.7 % 2,817,587 100.9 % Public works 1,285,929 9.9 % 2,142,911 30.4 % (856,982) (40.0)% Community development 3,265,217 25.2 % 679,232 9.6 % 2,585,985 380.7 % Parks and recreation 548,707 4.2 % 581,662 8.2 % (32,955) (5.7)% Capital outlay 881,455 6.8 % 243,082 3.4 % 638,373 262.6 % Debt service: principal 100,000 %0.8 - %- 100,000 %DIV/0 $ 12,958,865 %100.0 $ 7,054,594 %100.0 $ 5,904,271 %83.7 The $5,904,271 increase in governmental fund expenditures can be primarily attributed to the following:
· Public Safety expenditures increased by $2,817,587, primarily due to payoff of the unfunded accrued liability with CalPERS.
· Community development expenditures increased by $2,585,985, primarily due to HOME Grant expenditures. · Capital Outlay expenditures increased by $638,373 primarily due to the purchase of a vactor truck that was contributed to the water and sewer enterprise funds.

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 $6,128,316 decreased by $111,781 from $6,240,097 in the prior year.

General fund expenditures of $8,410,221 increased by $3,327,744 from $5,082,477 in the prior year. This increase is primarily attributed to higher expenditures in Public Safety related to paydown of the CalPERS UAL.

At June 30, 2025, the General Fund fund balance was $6,035,850 which is a decrease of $2,780,303 over the prior year. As a measure of the General Fund's ability to meet operating expenditures, it is useful to note that unassigned fund balance represents approximately 71.8% 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
The Streets fund accounts for revenues and expenditures for street maintenance and capital improvement projects.

As of June 30, 2025, the fund has a deficit fund balance of $1,261,520 which decreased by $389,934 from the prior year deficit balance of $1,651,454. The deficit reflects the timing difference between street expenditures incurred and the receipt of related revenues. Although the E Street Complete Project was not incurred as of June 30, 2025, the project is expected to significantly increase the deficit through its completion. The City plans to gradually reduce the deficit thereafter using recurring and eligible street funding sources. 9 166

CITY OF WILLIAMS

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
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.

The Water fund net position increased $2,370,064 from the prior year. The increase is attributed to grant proceeds received from the State of California Department of Water Resources for the Williams New Well and Pipeline Replacement Project along with a transfer of connection fees that were previously recorded in the Development special revenue fund.

The Sewer fund net position increased $1,029,375 from the prior year. The increase is primarily attributed to the transfer of connection fees that were previously recorded in the Development special revenue fund.

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, 2025 totaled $41,682,109 (net of accumulated 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
2025 2024 2025 2024 2025 2024
Land $ 3,913,214 $ 3,913,214 $ 216,067 $ 216,067 $ 4,129,281 $ 4,129,281 Construction in progress 825,600 423,801 10,478,285 8,811,999 11,303,885 9,235,800 Water system - - 6,418,986 6,418,986 6,418,986 6,418,986 Sewer system - - 20,401,695 20,401,695 20,401,695 20,401,695 Buildings and improvements 34,193,037 34,193,037 - - 34,193,037 34,193,037 Machinery and equipment 1,497,401 1,497,401 4,590,264 4,110,608 6,087,665 5,608,009 Accumulated depreciation (27,303,980) (26,875,886) (13,548,460) (12,739,883) (40,852,440) (39,615,769) Total $ 13,125,272 $ 13,151,567 $ 28,556,837 $ 27,219,472 $ 41,682,109 $ 40,371,039 Debt Administration
The City's total long-term debt for governmental activities increased by $470,578 primarily due to the inception of the loan from Morning Star.

The City's total debt for its business-type activities decreased $407,618 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
2025 2024 2025 2024 2025 2024
Morning Star Loan $ 422,467 $ - $ - $ - $ 422,467 $ -
2013 USDA Water Loan - - 2,031,100 2,076,500 2,031,100 2,076,500 2010 SRF Funds - - 6,187,401 6,551,366 6,187,401 6,551,366 Compensated absences 259,969 211,858 130,393 128,646 390,362 340,504 Total $ 682,436 $ 211,858 $ 8,348,894 $ 8,756,512 $ 9,031,330 $ 8,968,370 10 167

CITY OF WILLIAMS

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025

GENERAL FUND BUDGETARY HIGHLIGHTS
The City's annual budget is the legally adopted expenditure control document of the City. Budgets are prepared on a modified 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 budgeted as an expense.

For the City's General Fund, actual revenues recognized were $115,712 less than budgeted, while actual expenditures were $265,186 more than budgeted.

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.
11 168

CITY OF WILLIAMS

STATEMENT OF NET POSITION
JUNE 30, 2025
Governmental
Activities
Business-type
Activities Total
ASSETS
Cash and investments (Note 2) $ 6,269,706 $ 1,720,814 $ 7,990,520 Receivables:

Accounts 60,000 518,371 578,371
Taxes 791,680 - 791,680
Grants 54,164 685,697 739,861
Loans (Note 3) 7,691,898 - 7,691,898
Internal balances (Note 4) 145,521 (145,521) -
Restricted cash and investments (Note 2) 2,155,108 - 2,155,108 Capital assets (Note 5):

Non-depreciable 4,738,814 10,694,352 15,433,166
Depreciable, net 8,386,458 17,862,485 26,248,943
Total capital assets, net 13,125,272 28,556,837 41,682,109 Total Assets 30,293,349 31,336,198 61,629,547

DEFERRED OUTFLOWS OF RESOURCES
Changes in the net pension liability (Note 7) 4,189,667 1,931,157 6,120,824 Total Deferred Outflows of Resources 4,189,667 1,931,157 6,120,824

LIABILITIES
Accounts payable and accrued liabilities 221,113 330,637 551,750 Accrued payroll and benefits 113,634 - 113,634
Deposits payable 60,273 - 60,273
Long-term liabilities (Note 6):

Due within one year 359,969 541,058 901,027
Due in more than one year 322,467 7,807,836 8,130,303
Net pension liability (Note 7):

Due in more than one year 2,771,903 1,242,012 4,013,915 Total Liabilities 3,849,359 9,921,543 13,770,902

DEFERRED INFLOWS OF RESOURCES
Changes in the net pension liability (Note 7) 67,035 30,897 97,932 Total Deferred Inflows of Resources 67,035 30,897 97,932

NET POSITION
Net investment in capital assets 12,702,805 20,338,336 33,041,141 Restricted for:

Public safety 70,411 - 70,411
Public works and streets 209,103 - 209,103
Community development 2,151,183 - 2,151,183
Grants 13,451 - 13,451
Capital projects 107,086 931,563 1,038,649
Unrestricted 15,312,583 2,045,016 17,357,599
Total Net Position $ 30,566,622 $ 23,314,915 $ 53,881,537 See accompanying notes to the basic financial statements. 12 169

CITY OF WILLIAMS

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2025
Program Revenues Net (Expense) Revenue and Changes in Net Position Primary Government
Functions/Programs Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Governmental
Activities
Business-type
Activities Total

PRIMARY GOVERNMENT
Governmental activities:

General government $ 1,903,359 $ 92,640 $ 25,180 $ - $ (1,785,539) $ - $ (1,785,539) Public safety 3,716,051 284,710 194,663 - (3,236,678) - (3,236,678) Public works 1,289,088 191,141 35,455 - (1,062,492) - (1,062,492) Community development 3,029,348 144,911 2,903,850 - 19,413 - 19,413 Parks and recreation 398,705 49,190 - - (349,515) - (349,515) Total governmental activities 10,336,551 762,592 3,159,148 - (6,414,811) - (6,414,811) Business-type activities:

Water 1,556,381 1,369,132 - 1,530,417 - 1,343,168 1,343,168 Sewer 2,674,778 2,433,962 45,297 - - (195,519) (195,519) Total business-type activities 4,231,159 3,803,094 45,297 1,530,417 - 1,147,649 1,147,649 Total primary government $ 14,567,710 $ 4,565,686 $ 3,204,445 $ 1,530,417 (6,414,811) 1,147,649 (5,267,162) General revenues:

Taxes:

Property taxes 1,571,053 - 1,571,053
Sales and use taxes 1,753,323 - 1,753,323
Local 1,334,487 - 1,334,487
Motor vehicle in-lieu 645,465 - 645,465
Transient occupancy tax 430,276 - 430,276
Franchise fees 320,316 - 320,316
Business licenses 67,784 - 67,784
Investment income 3,287,820 72,886 3,360,706
Other revenues 43,136 86,984 130,120
Transfers (2,091,920) 2,091,920 -
Total general revenues and transfers 7,361,740 2,251,790 9,613,530 Change in net position 946,929 3,399,439 4,346,368
Net position - July 1, 2024 29,619,693 19,915,476 49,535,169 Net position - June 30, 2025 $ 30,566,622 $ 23,314,915 $ 53,881,537 See accompanying notes to the basic financial statements. 13 170

CITY OF WILLIAMS

BALANCE SHEET

GOVERNMENTAL FUNDS
JUNE 30, 2025
General
Fund CDBG
Development
Fund Streets Fund
Other
Governmental
Funds
Total
Governmental
Funds
ASSETS
Cash and investments $ 4,154,382 $ - $ - $ - $ 388,611 $ 4,542,993 Receivables:

Accounts 6,589 - - 39,860 13,551 60,000
Taxes 791,680 - - - - 791,680
Grants - 54,164 - - - 54,164
Loans - 7,656,035 - - - 7,656,035
Due from other funds 1,412,435 - - - - 1,412,435
Restricted cash and
investments - 689,981 1,465,127 - - 2,155,108
Total Assets $ 6,365,086 $ 8,400,180 $ 1,465,127 $ 39,860 $ 402,162 $ 16,672,415

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES
(DEFICITS)

LIABILITIES
Accounts payable and accrued
liabilities $ 155,329 $ 3,925 $ - $ 34,466 $ 2,111 $ 195,831 Accrued payroll and benefits 113,634 - - - - 113,634
Deposits payable 60,273 - - - - 60,273
Due to other funds - - - 1,266,914 - 1,266,914
Total Liabilities 329,236 3,925 - 1,301,380 2,111 1,636,652

DEFERRED INFLOWS OF

RESOURCES
Unavailable revenues - 7,710,199 - - - 7,710,199
Total Deferred Inflows of
Resources - 7,710,199 - - - 7,710,199

FUND BALANCES (DEFICITS)
Restricted - 686,056 1,465,127 - 400,051 2,551,234
Unassigned 6,035,850 - - (1,261,520) - 4,774,330
Total Fund Balances
(Deficits) 6,035,850 686,056 1,465,127 (1,261,520) 400,051 7,325,564 Total Liabilities, Deferred
Inflows of Resources
and Fund Balances
(Deficits) $ 6,365,086 $ 8,400,180 $ 1,465,127 $ 39,860 $ 402,162 $ 16,672,415 See accompanying notes to the basic financial statements. 14 171

CITY OF WILLIAMS

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION
JUNE 30, 2025
Total fund balances reported on the governmental funds balance sheet $ 7,325,564 Amounts reported for governmental activities in the statement of net position are different because of the following:

Capital assets of $40,429,252, net of accumulated depreciation of $27,303,980, used in governmental activities are not financial resources and therefore are not reported in the governmental funds. 13,125,272
Other long-term assets are not available to pay for current period expenditures and therefore, are reported as unavailable revenues in the governmental funds. 54,164 Certain notes, loans, and interest receivables are not available to pay for current period expenditures and therefore are offset by deferred inflows of resources in the governmental funds. 7,656,035
Deferred outflows of resources related to changes in the net pension liability are not applicable to the current period. 4,189,667
Long term liabilities are not due and payable in the current period and, therefore are not reported in the governmental funds:

Loans payable (422,467)
Compensated absences (259,969)
Net pension liability (2,771,903)
Deferred inflows related to changes in the net pension liability (67,035) 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. 1,737,294 Net position of governmental activities $ 30,566,622
See accompanying notes to the basic financial statements. 15 172

CITY OF WILLIAMS

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
General
Fund CDBG
Development
Fund Streets Fund
Other
Governmental
Funds
Total
Governmental
Funds

REVENUES
Property taxes $ 1,571,053 $ - $ - $ - $ 132,041 $ 1,703,094 Sales taxes 1,596,680 - - 156,643 - 1,753,323
Local taxes 905,304 - - 429,183 - 1,334,487
Motor vehicle in lieu 645,465 - - - - 645,465
Transient occupancy 430,276 - - - - 430,276
Franchise fees 320,316 - - - - 320,316
Business license fees 67,784 - - - 2,882 70,666
Charges for services 311,911 - 301,899 - 13,859 627,669 Intergovernmental 20,180 2,849,686 - 35,455 199,663 3,104,984 Interest 239,059 39,515 55,307 - 19,150 353,031
Other revenues 20,288 184,052 - - - 204,340
Total Revenues 6,128,316 3,073,253 357,206 621,281 367,595 10,547,651

EXPENDITURES
Current operations:

General government 1,267,775 - - - - 1,267,775
Public safety 5,308,737 - 101,648 - 199,397 5,609,782
Public works 917,605 - - 252,015 116,309 1,285,929
Community development 382,860 2,882,357 - - - 3,265,217 Parks and recreation 533,244 - 10,463 - 5,000 548,707
Debt service:

Principal - - - 100,000 - 100,000
Capital outlay - - 479,656 401,799 - 881,455
Total Expenditures 8,410,221 2,882,357 591,767 753,814 320,706 12,958,865 Excess (deficiency) of revenues
over expenditures (2,281,905) 190,896 (234,561) (132,533) 46,889 (2,411,214)

OTHER FINANCING SOURCES (USES)
Proceeds from debt issuance - - - 522,467 - 522,467
Transfers out (498,398) - (1,873,559) - (12,445) (2,384,402) Total Other Financing
Sources (Uses) (498,398) - (1,873,559) 522,467 (12,445) (1,861,935) Net change in fund balances (2,780,303) 190,896 (2,108,120) 389,934 34,444 (4,273,149) Fund balance (deficit) -
July 1, 2024 8,816,153 495,160 3,573,247 (1,651,454) 365,607 11,598,713 Fund balance (deficit) -
June 30, 2025 $ 6,035,850 $ 686,056 $ 1,465,127 $ (1,261,520) $ 400,051 $ 7,325,564 See accompanying notes to the basic financial statements. 16 173

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, 2025
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 $ (4,273,149) Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets:

Capital asset purchases 881,455
Depreciation expense (428,094)
Capital assets acquired with governmental fund resources were transferred to enterprise funds and are capitalized in business-type activities. Accordingly, these expenditures are not added to capital assets in governmental activities and are reported as transfers to business-type activities. (479,656)
Some revenues reported in the Statement of Activities will not be collected for several months after the City's year-end and do not provide current financial resources and therefore are not reported as revenues in the governmental funds. Some revenues reported in the prior year statement of activities were recognized in the governmental funds in the current year.

This is the net change in revenues. 54,164
Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position:

Debt principal payments 100,000
Debt issuances are an other financing source in governmental funds, but an increase in longterm liabilities in the Statement of Net Position:

Proceeds from loan issuance (522,467)
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 increase and decrease, respectively, in notes receivable in the Statement of Net Position:

Loan program receipts (194,844)
Loans made during the year 2,725,857
Accrued interest on loans 161,151
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 (48,111)
Pension expense related to deferred outflows and inflows of resources 2,948,362 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. 22,261 Change in net position of governmental activities $ 946,929 See accompanying notes to the basic financial statements. 17 174

CITY OF WILLIAMS

STATEMENT OF NET POSITION

PROPRIETARY FUNDS
JUNE 30, 2025
Business-type Activities
Governmental
Activities
Water Sewer Totals
Internal Service
Fund
ASSETS
Current assets:

Cash and investments $ - $ 1,720,814 $ 1,720,814 $ 1,726,713 Receivables:

Accounts 151,361 367,010 518,371 -
Grants 685,697 - 685,697 -
Loans - - - 35,863
Total Current Assets 837,058 2,087,824 2,924,882 1,762,576 Non-current assets:

Advances to other funds - 265,124 265,124 -
Capital assets:

Non-depreciable 10,017,702 676,650 10,694,352 -
Depreciable, net 4,378,109 13,484,376 17,862,485 -
Total capital assets net 14,395,811 14,161,026 28,556,837 - Total Non-Current Assets 14,395,811 14,426,150 28,821,961 - Total Assets 15,232,869 16,513,974 31,746,843 1,762,576

DEFERRED OUTFLOWS OF RESOURCES
Changes in net pension liability 626,682 1,304,475 1,931,157 - Total Deferred Outflows of Resources 626,682 1,304,475 1,931,157 -

LIABILITIES
Current liabilities:

Accounts payable 257,801 72,836 330,637 25,282
Compensated absences - current 40,091 90,302 130,393 -
Due to other funds 145,521 - 145,521 -
Bonds payable - current 46,700 363,965 410,665 -
Total Current Liabilities 490,113 527,103 1,017,216 25,282 Long-term liabilities:

Advances from other funds 265,124 - 265,124 -
Bonds payable - non-current 1,984,400 5,823,436 7,807,836 - Net pension liability 401,023 840,989 1,242,012 -
Total Long-term Liabilities 2,650,547 6,664,425 9,314,972 - Total Liabilities 3,140,660 7,191,528 10,332,188 25,282

DEFERRED INFLOWS OF RESOURCES
Changes in net pension liability 10,027 20,870 30,897 - Total Deferred Inflows of Resources 10,027 20,870 30,897 - NET POSITION:

Net investment in capital assets 12,364,711 7,973,625 20,338,336 - Restricted 931,563 - 931,563 -
Unrestricted (587,410) 2,632,426 2,045,016 1,737,294
Total Net Position $ 12,708,864 $ 10,606,051 $ 23,314,915 $ 1,737,294 See accompanying notes to the basic financial statements. 18 175

CITY OF WILLIAMS

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Business-type Activities
Governmental
Activities
Water Sewer Totals
Internal
Service Fund

OPERATING REVENUES
Utility revenues $ 1,369,132 $ 2,433,962 $ 3,803,094 $ - Other revenues 4,212 82,772 86,984 22,848
Total Operating Revenue 1,373,344 2,516,734 3,890,078 22,848

OPERATING EXPENSES
Salaries and benefits 513,007 809,962 1,322,969 339,765 Other fringe benefits 276,403 435,958 712,361 -
General administration 56,356 46,662 103,018 491,533
Maintenance and operations 349,498 571,769 921,267 -
Professional services 23,831 34,090 57,921 -
Contracted services 44,339 198,445 242,784 -
Depreciation 230,685 577,892 808,577 -
Total Operating Expenses 1,494,119 2,674,778 4,168,897 831,298 Operating Income (Loss) (120,775) (158,044) (278,819) (808,450)

NON-OPERATING REVENUE (EXPENSES)
Intergovernmental revenue 1,530,417 45,297 1,575,714 -
Interest income 1 72,885 72,886 58,573
Interest expense (62,262) - (62,262) -
Total Non-Operating Revenues (Expenses) 1,468,156 118,182 1,586,338 58,573 Income (Loss) Before Transfers and
Contributions 1,347,381 (39,862) 1,307,519 (749,877)

TRANSFERS AND CONTRIBUTIONS
Capital contribution 159,885 319,771 479,656 -
Transfers in 937,453 936,106 1,873,559 772,138
Transfers out (74,655) (186,640) (261,295) -
Total Transfers and Contributions 1,022,683 1,069,237 2,091,920 772,138 Change in net position 2,370,064 1,029,375 3,399,439 22,261 Net Position - July 1, 2024 10,338,800 9,576,676 19,915,476 1,715,033 Net Position - June 30, 2025 $ 12,708,864 $ 10,606,051 $ 23,314,915 $ 1,737,294 See accompanying notes to the basic financial statements. 19 176

CITY OF WILLIAMS

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Business-type Activities
Governmental
Activities
Water Sewer Totals
Internal
Service Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 1,367,978 $ 2,396,157 $ 3,764,135 $ 25,659 Cash paid to suppliers (508,119) (851,809) (1,359,928) (494,354) Cash paid to employees (1,229,412) (2,162,690) (3,392,102) (339,765) Net Cash Used for Operating Activities (369,553) (618,342) (987,895) (808,460)

CASH FLOWS FROM NONCAPITAL FINANCING

ACTIVITIES
Interfund loan repayments received - 21,336 21,336 -
Interfund loan repayments made (525,351) - - -
Intergovernmental 1,762,166 45,297 1,807,463 -
Transfers from other funds 937,453 936,106 1,873,559 772,138 Transfers to other funds (74,655) (186,640) (261,295) - Net Cash Provided by Noncapital
Financing Activities 2,099,613 816,099 3,441,063 772,138

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and construction of capital assets (1,628,570) (37,716) (1,666,286) - Principal paid on capital debt (45,400) (363,965) (409,365) - Interest paid on capital debt (62,262) - (62,262) -
Net Cash Used for Capital and Related
Financing Activities (1,736,232) (401,681) (2,137,913) -

CASH FLOWS FROM INVESTING ACTIVITIES
Interest and dividends 1 72,885 72,886 58,573
Net Cash Provided by Investing Activities 1 72,885 72,886 58,573 Net Increase (Decrease) in Cash and Cash
Equivalents (6,171) (131,039) 388,141 22,251
Cash and Cash Equivalents - July 1, 2024 6,171 1,851,853 1,858,024 1,704,462 Cash and Cash Equivalents - June 30, 2025 $ - $ 1,720,814 $ 2,246,165 $ 1,726,713 See accompanying notes to the basic financial statements. 20 177

CITY OF WILLIAMS

STATEMENT OF CASH FLOWS (CONTINUED)

PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Business-type Activities
Water Sewer Totals
Internal
Service Fund

RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH USED FOR OPERATING
ACTIVITIES:

Operating Income (Loss) $ (120,775) $ (158,044) $ (278,819) $ (808,450) Adjustments to reconcile operating income (loss)
to net cash used for operating activities:

Depreciation expense 230,685 577,892 808,577 -
Changes in assets and liabilities:
(Increase) decrease in:

Accounts receivable (5,366) (120,577) (125,943) -
Loans receivable - - - 2,811
Pension related deferred outflows of
resources (425,117) (884,906) (1,310,023) -
Increase (decrease) in:

Accounts payable (34,095) (843) (34,938) (2,821)
Net pension liability (5,366) (11,253) (16,619) -
Compensated absences 826 921 1,747 -
Pension related deferred inflows of resources (10,345) (21,532) (31,877) - Net Cash Used for Operating Activities $ (369,553) $ (618,342) $ (987,895) $ (808,460) NON CASH SUPPLEMENTAL DISCLOSURE:

Acquisition of capital assets through contributed
capital $ 159,885 $ 319,771 $ 479,656 $ -
See accompanying notes to the basic financial statements. 21 178

CITY OF WILLIAMS

STATEMENT OF FIDUCIARY NET POSITION

FIDUCIARY FUNDS
JUNE 30, 2025
Colusa LAFCo
ASSETS
Cash and investments (Note 2) $ 191,339
Total Assets 191,339

LIABILITIES
Accounts payable 7,509
Total Liabilities 7,509

NET POSITION
Restricted for individuals, organizations, and other governments 183,830 Total Net Position $ 183,830
See accompanying notes to the basic financial statements. 22 179

CITY OF WILLIAMS

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2025
Colusa LAFCo

ADDITIONS
Interest income $ 7,181
Other revenues 96,500
Total Additions 103,681

DEDUCTIONS
General and administration 45,652
Contracted services 24,519
Total Deductions 70,171
Change in Fiduciary Net Position 33,510
Fiduciary Net Position - July 1, 2024 150,320
Fiduciary Net Position - June 30, 2025 $ 183,830
See accompanying notes to the basic financial statements. 23 180

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 contracts for the following services: public safety (Police and Fire), highways and streets, water, sewer, culturerecreation, public improvements, planning and zoning, and general administration. Authority and responsibility for operations is given to the City Council by the voters of the City of Williams. The City Council has the authority to employ administrative and support personnel to carry out its directives. The primary method used to monitor the performance of the City’s management is the financial budget which is adopted annually by the City Council. The City operates as a self-governing governmental unit within the State of California.

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 organized 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 authority. The Corporation does not issue separate financial statements.

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 of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. 24 181

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

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.

Internal Service Funds - Internal service funds are used to account for, and finance, services and commodities furnished by a designated department of a governmental unit to other departments of the same governmental unit.

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. 25 182

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Major Funds
The City reports the following major governmental funds in the accompanying financial statements:

General Fund - This is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in a separate fund.

CDBG Fund - This fund accounts for revenues and expenditures from repayment of CDBG loans and HOME program administration funds.

Development Fund - This fund accounts for fees paid by developers for public facilities improvements.

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 and 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. 26 183

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Basis of Accounting
In the government-wide Statement of Net Position and Statement of Activities, both governmental and proprietary activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset is used.

Revenues, expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like transactions 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 as expenditures in governmental funds. Proceeds from governmental long-term liabilities and financing through 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 recognized when earned 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 management pool is used essentially as a demand deposit account by the participating funds. The City has defined cash and cash equivalents, for purposes of the preparation of its statement of cash flows, as deposits and investments purchased with a maturity date of 90 days or less.

Investments are stated at fair value (the value at which an investment could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale).

E. Receivables
In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received.

Receivables are recorded in the financial statements net of any allowance for doubtful accounts, if applicable, and estimated 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. 27 184

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 met.

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
The City accounts for compensated absences in accordance with GASB Statement No. 101, Compensated Absences. Compensated absences include leave for which employees may receive cash payments or other forms of settlement, either during employment or upon termination. These include, but are not limited to, vacation leave, management leave, sick leave, holidays, and bereavement leave. Under GASB 101, a liability is recognized for: (1) leave that has been earned but not yet used, and (2) leave that has been used but not yet paid or settled. The liability is measured based on the amount of leave that is more likely than not to be paid or settled. This includes applicable salary-related payments, if those contributions are directly associated with the payment of compensated absences.

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, businesstype 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).
28 185

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) In the fund financial statements, governmental fund types recognize bond premiums, discounts, and issuance costs during the period issued. The face amount of debt issued is reported as other financing sources. Premiums received are reported as other financing sources, while discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

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 referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as "internal balances". Advances between funds, as reported in the fund financial statements, are offset by 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
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City's California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.

Investments are reported at fair value.

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 deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(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 for 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 29 186

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 other 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. c. 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:
a. 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. b. 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. e. 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 by the Colusa County Assessor as of January 1. Taxes are levied annually on July 1 and become a lien on real property 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.
30 187

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 Governmental Accounting Standards Board Statements Effective July 1, 2024, the City implemented the following accounting and financial reporting standards:

Governmental 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. There was no significant impact to the financial statements as a result of this statement.

Governmental 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 decisionmaking authority. There was no significant impact to the financial statements as a result of this statement.

Q. Future Governmental Accounting Standards Board Statements These statements are not effective until July 1, 2025 or later. The City has not determined the effects, if any, on the financial statements.

Governmental 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 City's fiscal year ending June 30, 2026.

Governmental Accounting Standards Board Statement No. 104 In September 2024, GASB issued Statement No, 104, Disclosure of Certain Capital Assets. The objective of this Statement is to provide users of government financial statements with essential information about certain types of capital assets. This Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34 and also requires additional disclosures for capital assets held for sale.

The requirements of this statement are effective for the City's fiscal year ending June 30, 2026. 31 188

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Governmental Accounting Standards Board Statement No. 105 In December 2025, GASB issued Statement No. 105, Subsequent Events. The primary objective of this Statement is to improve the financial reporting requirements for subsequent events. The requirements of this Statement will improve financial reporting related to subsequent events by (1) clarifying the subsequent events time frame and the subsequent events that constitute recognized and nonrecognized events and (2) specifying the information items that are required to be disclosed about subsequent events. The requirements of this Statement are effective for the City’s year ending June 30, 2027.

NOTE 2: CASH AND INVESTMENTS
Cash and investments as of June 30, 2025 were classified in the accompanying financial statements as follows:

Cash and
Investments
Restricted
Cash and
Investments Total
Governmental activities $ 6,269,706 $ 2,155,108 $ 8,424,814 Business-type activities 1,720,814 - 1,720,814
Total government-wide cash
and investments 7,990,520 2,155,108 10,145,628
Fiduciary activities 191,339 - 191,339
Total Cash and Investments $ 8,181,859 $ 2,155,108 $ 10,336,967 Cash and investments at June 30, 2025 consisted of the following:

Cash on hand $ 1,815
Cash in banks 679,916
Total cash 681,731
California CLASS 4,543,021
Local Agency Investment Fund (LAIF) 5,112,215
Total investments 9,655,236
Total Cash and Investments $ 10,336,967
32 189

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's Investment Policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy.

Authorized Investment Type
Minimum
Credit Rating
Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Individual
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 6 months 30% $1 million Commercial Paper A-1, P-1, or F-1 9 months 25% $1 million Negotiable Time Certificates of Deposit
A-1, P-1, or F-1
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
Investments are measured at fair value on a recurring basis. Recurring fair value measurements are those that Governmental Accounting Standards Board (GASB) Statements require or permit in the statement of net position at the end of each reporting period. Fair value measurements are categorized based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City did not have any investments subject to valuation on a recurring basis at June 30, 2025.

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 of 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 $4,543,021 is not subject to valuation on a recurring basis.

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 prorata 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 LAIF, which is recorded on an amortized cost basis. The investment of $5,112,215 is not subject to valuation on a recurring basis. 33 190

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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.

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of short-term investments, and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's investments to market rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity as of June 30, 2025:

Remaining Maturity
Investment Type < 12 months 1 - 5 years > 5 years Fair Value California CLASS $ 4,543,021 $ - $ - $ 4,543,021
Local Agency Investment Funds 5,112,215 - - 5,112,215
Total Investments $ 9,655,236 $ - $ - $ 9,655,236
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, 2025.

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 $ 4,543,021 AAAm Not rated
Local Agency Investment Fund 5,112,215 Not rated Not rated Total $ 9,655,236
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of the City's investment in a single issuer of securities. When investments are concentrated in one issuer, this concentration presents a heightened risk of potential loss. The City's investment policy contains limitations on the amount that can be invested in any one issuer.

There were no investments in any one issuer (other than mutual funds and external investment pools) at June 30, 2025, that represented 5 percent or more of total City investments. 34 191

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 loan programs 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 activity.

At June 30, 2025, the outstanding balance of loans receivable totaled $7,691,898 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, 2025 the Water fund owed the Sewer fund $265,124.

Due To/From Other Funds
During the course of operations, transactions occur between funds to account for goods received or services rendered. These receivables and payables are classified as due from or due to other funds. In addition, when funds overdraw their share of pooled cash, the receivables and payables are also classified as due from or due to other funds. The following are due to and due from balances as of June 30, 2025:

Receivable Fund Payable Fund Description Amount
Major Governmental Funds
General Fund Streets Fund Cover negative cash $ 1,266,914 General Fund Water Cover negative cash 145,521
Total Major Governmental Due From/Due To 1,412,435
Total Due From/Due To $ 1,412,435
35 192

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 4: INTERFUND TRANSACTIONS (CONTINUED)
Transfers
Transfers are indicative of funding for capital projects, lease payments or debt service, subsidies of various City operations, and re-allocations of special revenues. The following are the interfund transfers for fiscal year ended June 30, 2025:

Transfer From Transfer To Description of Transfer Amount Major Governmental Funds
General Fund Internal Service - Insurance Insurance costs $ 348,398 General Fund Internal Service - Vehicle Annual contribution 50,000 General Fund Internal Service - Infrastructure Annual contribution 100,000 Development Fund Water Connection fees 937,453
Development Fund Sewer Connection fees 936,106
Total Major Governmental Interfund Transfers 2,371,957
Non-Major Governmental Funds
Lighting & Landscaping Internal Service - Insurance Insurance costs 12,445 Total Non-Major Governmental Interfund Transfers 12,445 Total Governmental Interfund Transfers 2,384,402
Proprietary Funds
Water Internal Service - Insurance Insurance costs 74,655 Sewer Internal Service - Insurance Insurance costs 186,640 Total Proprietary Interfund Transfers $ 261,295
36 193

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 5: CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2025, was as follows:

Governmental Activities:

Balance at
July 1, 2024 Additions Retirements Transfers
Balance at
June 30, 2025
Capital assets, not being
depreciated:

Land $ 3,913,214 $ - $ - $ - $ 3,913,214
Construction-in-progress 423,801 401,799 - - 825,600
Total capital assets not being
depreciated 4,337,015 401,799 - - 4,738,814
Capital assets being depreciated
Buildings and improvements 34,193,037 - - - 34,193,037
Machinery and equipment 1,497,401 479,656 - (479,656) 1,497,401 Total capital assets being
depreciated 35,690,438 479,656 - (479,656) 35,690,438
Less accumulated depreciation:

Buildings and improvements (25,625,968) (342,102) - - (25,968,070) Machinery and equipment (1,249,918) (85,992) - - (1,335,910) Total accumulated depreciation (26,875,886) (428,094) - - (27,303,980) Total capital assets being
depreciated, net 8,814,552 51,562 - (479,656) 8,386,458 Total Capital Assets, net $ 13,151,567 $ 453,361 $ - $ (479,656) $ 13,125,272 Depreciation expense was charged to functions based on their usage of the related assets as follows:

Governmental Activities:

General government $ 21,527
Public safety 52,188
Public works 52,102
Parks and recreation 26,900
Streets and highways 275,377
Total governmental activities depreciation expense $ 428,094 37 194

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 5: CAPITAL ASSETS (CONTINUED)
Business-type Activities:

Balance at
July 1, 2024 Additions Retirements Transfers
Balance at
June 30, 2025
Capital assets, not being
depreciated:

Land $ 216,067 $ - $ - $ - $ 216,067
Construction-in-progress 8,811,999 1,666,286 - - 10,478,285 Total capital assets not being
depreciated 9,028,066 1,666,286 - - 10,694,352
Capital assets being depreciated
Water system 6,418,986 - - - 6,418,986
Sewer system 20,401,695 - - - 20,401,695
Machinery and equipment 4,110,608 - - 479,656 4,590,264 Total capital assets being
depreciated 30,931,289 - - 479,656 31,410,945
Less accumulated depreciation:

Water system (2,168,991) (183,696) - 31,000 (2,321,687) Sewer system (6,784,457) (508,276) - - (7,292,733)
Machinery and equipment (3,786,435) (116,605) - (31,000) (3,934,040) Total accumulated depreciation (12,739,883) (808,577) - - (13,548,460) Total capital assets being
depreciated, net 18,191,406 (808,577) - 479,656 17,862,485 Total Capital Assets, net $ 27,219,472 $ 857,709 $ - $ 479,656 $ 28,556,837 Depreciation expense was charged to business-type functions as follows:

Business-type Activities:

Water $ 230,685
Sewer 577,892
Total business-type activities depreciation expense $ 808,577 38 195

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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, 2025:

Balance
July 1, 2024 Additions Reductions
Balance
June 30, 2025
Current
Portion
Governmental Activities:

Loans payable:

Morning Star $ - $ 522,467 $ (100,000) $ 422,467 $ 100,000 Other liabilities:

Compensated absences* 211,858 48,111 - 259,969 259,969
Total $ 211,858 $ 570,578 $ (100,000) $ 682,436 $ 359,969 * Reported at net amounts
A description of long-term liabilities related to governmental activities at June 30, 2025 follows:

Morning Star Loan
In December 2024, the City entered into a loan agreement with the Morning Star Company, Inc. for improvements to Old Highway 99 in the amount of $522,467. The loan term is five years with no interest due for the first three years.

Interest in the amount of prime plus 2% shall accrue on any unpaid balance remaining after the first three years.

Annual principal payments are due each June 1. The schedule below utilizes a maturity date of June 30, 2027, which reflects the City's intent to repay the loan within the first three years.

Future debt service payments on the loan are as follows:

For the Year
Ending June 30, Principal
2026 $ 100,000
2027 322,467
Total $ 422,467
Compensated Absences
At June 30, 2025, compensated absences totaled $259,969, of which $259,969 was recorded as a current liability.

For governmental activities, compensated absences are generally liquidated by the general fund. 39 196

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 6: LONG-TERM LIABILITIES (CONTINUED)
B. Business-type Activities
The following is a summary of changes in business-type long-term liabilities for the year ended June 30, 2025:

Balance
July 1, 2024 Additions Reductions
Balance
June 30, 2025
Current
Portion
Business-type Activities:

Loans payable:
2013 USDA Water Loan $ 2,076,500 $ - $ (45,400) $ 2,031,100 $ 46,700 2010 SRF Funds 6,551,366 - (363,965) 6,187,401 363,965
Total loans payable 8,627,866 - (409,365) 8,218,501 410,665 Other liabilities:

Compensated absences* 128,646 1,747 - 130,393 130,393
Total $ 8,756,512 $ 1,747 $ (409,365) $ 8,348,894 $ 541,058 *Reported at net amounts
A description of long-term liabilities related to business-type activities at June 30, 2025 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
2026 $ 46,700 $ 55,214 $ 101,914
2027 48,000 53,912 101,912
2028 49,300 52,574 101,874
2029 50,700 51,199 101,899
2030 52,000 49,787 101,787
2031 - 2035 282,600 226,346 508,946
2036 - 2040 323,600 184,730 508,330
2041 - 2045 370,600 137,079 507,679
2046 - 2050 424,200 82,513 506,713
2051 - 2054 383,400 21,444 404,844
Total $ 2,031,100 $ 914,798 $ 2,945,898
40 197

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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 treatment plant improvement project in the amount of $16,918,943. Annual principal payments are due each December 31. The loan has a 0% interest rate and matures in December 2041. The payments are secured by a pledge of net sewer revenues.

Future debt service payments on the bonds are as follows:

For the Year
Ending June 30, Principal Interest Total
2026 $ 363,965 $ - $ 363,965
2027 363,965 - 363,965
2028 363,965 - 363,965
2029 363,965 - 363,965
2030 363,965 - 363,965
2031 - 2035 1,819,825 - 1,819,825
2036 - 2040 1,819,825 - 1,819,825
2041 - 2042 727,926 - 727,926
Total $ 6,187,401 $ - $ 6,187,401
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’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors four rate plans (two miscellaneous and two safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 (age 62 for Miscellaneous Plan members if membership date is on or after January 1, 2013) with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. 41 198

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 7: PENSION PLAN (CONTINUED)
The Plans’ provisions and benefits in effect at June 30, 2025, are summarized as follows:

Miscellaneous
Tier 1 PEPRA
Hire Date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.0% @ 55 2.0% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life
Retirement age 55 62
Monthly benefits, as of % of eligible
compensation
Highest single
year 3-year average
Required employee contribution rates 7.00% 6.75%
Required employer contribution rates 11.88% 7.87%
Required UAL contribution $133,924 $3,375
Safety Police
Tier I PEPRA
Hire Date
Prior to
February 7, 2011
On or after
January 1, 2013
Benefit formula 3.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life
Retirement age 50 57
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 25.86% 13.76%
Required UAL contribution $167,081 $3,789
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. The City’s contributions to the Plan for the year ended June 30, 2025 were $5,271,921.

B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2025, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan of $4,013,915. $2,771,903 of the liability is reported in governmental activities and $1,242,012 of the liability is reported in business-type activities.
42 199

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 7: PENSION PLAN (CONTINUED)
The City's net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2024, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. The City's proportionate share of the net pension liability for the Plan as of June 30, 2023 and 2024 was as follows:

Total
Proportion – June 30, 2023 0.03261 %
Proportion – June 30, 2024 0.03310 %
Change – increase (decrease) 0.00049 %
For the year ended June 30, 2025, the City recognized pension expense of $965,038. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to measurement date $ 5,271,921 $ - Changes of assumptions 100,808 -
Differences between expected and actual experience 336,291 11,945 Differences between projected and actual investment earnings 210,615 - Difference between the employer's contributions and proportionate share of contributions
46,754 85,987
Change in employer's proportion 154,435 -
Total $ 6,120,824 $ 97,932
$5,271,921 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 subsequent fiscal year. 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,
2026 $ 292,654
2027 514,749
2028 15,686
2029 (72,118)
43 200

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 7: PENSION PLAN (CONTINUED)
Actuarial Assumptions
The total pension liabilities in the June 30, 2024 actuarial valuations were determined using the following actuarial assumptions:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
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 CalPERS membership data for all funds Post Retirement Benefit Increase Contract COLA up to 2.30% until purchasing power protection allowance floor on purchasing power applies, 2.30% thereafter. (1) The mortality table used was developed based on CalPERS specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on CalPERS' website.

Changes in Assumptions
For the measurement period June 30, 2024, 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, CalPERS took into account 20-year market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long-term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. 44 201

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 7: PENSION PLAN (CONTINUED)
The table below reflects long-term expected real rates of return by asset class.

Asset Class
Assumed Asset
Allocation
Real Return
Years 1 - 10
(1, 2)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage (5.0%) (0.59%)
(1) An expected inflation of 2.03% 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 date, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one-percentage point lower or one-percentage point higher than the current rate:

Discount Rate -1%
(5.90%)
Current Discount Rate
(6.90%)
Discount Rate +1%
(7.90%)
Net Pension Liability $ 6,623,638 $ 4,013,915 $ 1,873,382 Pension Plan Fiduciary Net Position
Detailed information about the pension plan's fiduciary net position is available in the separately issued CalPERS 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.
45 202

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 8: FUND BALANCE (CONTINUED)
Assigned: Amounts that are not restricted by the funding agency but are for specific purposes and assigned by City Council for that purpose. City Council's action in creating the fund is to ensure that the funds are used for their intended purpose. That purpose is not always planned for the current fiscal year as it may take several years to build up a sufficient fund balance to be able to implement the stated purpose. This classification also represents all remaining amounts (except negative balances) reported in governmental funds, other than the general fund, that are not classified as non-spendable, restricted, or committed.

Unassigned: Residual amounts in the general fund, not classified as non-spendable, restricted, committed, or assigned. For other governmental fund types, unassigned is only used when a deficit or negative fund balance occurs.

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, 2025, fund balances were comprised of the following:

General
Fund CDBG
Development
Fund Streets Fund
Non-Major
Governmental
Funds
Total
Governmental
Funds
Restricted for:

Community development $ - $ - $ 1,465,127 $ - $ - $ 1,465,127 Loans - 686,056 - - - 686,056
Improvements & maintenance - - - - 209,103 209,103
Public safety - - - - 70,411 70,411
Grants - - - - 13,451 13,451
Capital projects - - - - 107,086 107,086
Unassigned 6,035,850 - - (1,261,520) - 4,774,330
Total Fund Balance $ 6,035,850 $ 686,056 $ 1,465,127 $ (1,261,520) $ 400,051 $ 7,325,564 NOTE 9: DEFICIT FUND BALANCE
As of June 30, 2025, the following governmental funds had a fund balance deficit:

Fund Deficit
Streets Fund $ 1,261,520
This deficit was a result of expenditures incurred in advance of receipt of revenue and will be eliminated through future revenues.
46 203

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
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, 2025:

Fund
Excess of
Expenditures
and Transfers
General fund $ 171,008
CDBG 2,652,357
Development 996,685
Streets 599,860
Law Enforcement Grant 94,500
Police Grant 4,897
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 (GSRMA), a public entity risk pool that is currently operating as a common risk management agency. GSRMA is governed by a seven member 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 operating budgets, independent of any influence by member 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 from 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 GSRMA'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, 2025, the City incurred costs of $407,169 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 GSRMA for the year ended June 30, 2025 (the latest available) was as follows:

Total assets $ 43,811,085
Total liabilities 28,052,218
Net position 15,758,868
Total revenues 45,525,066
Total expenses 42,424,169
Change in net position $ 3,100,897
47 204

CITY OF WILLIAMS

NOTES TO BASIC FINANCIAL STATEMENTS
JUNE 30, 2025
NOTE 12: COMMITMENTS AND CONTINGENCIES
A. Contractual Obligations
At June 30, 2025, the City had construction contracts outstanding of approximately $34,666 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 timing of potential payment of such losses cannot presently be determined.

NOTE 13: SUBSEQUENT EVENTS
Management has evaluated subsequent events through July 29, 2026, the date on which the financial statements were available for issuance. Management has determined no subsequent events requiring disclosure have occurred. 48 205

REQUIRED SUPPLEMENTARY INFORMATION
206

CITY OF WILLIAMS

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Property taxes $ 1,467,292 $ 1,467,292 $ 1,571,053 $ 103,761 Sales taxes 1,966,801 1,966,801 1,596,680 (370,121)
Local taxes 1,057,678 1,057,678 905,304 (152,374)
Motor vehicle in lieu 605,813 605,813 645,465 39,652
Transient occupancy 572,220 572,220 430,276 (141,944)
Franchise fees 294,189 294,189 320,316 26,127
Business license fees 43,697 43,697 67,784 24,087
Charges for service 215,530 215,530 311,911 96,381
Intergovernmental - - 20,180 20,180
Interest 15,606 15,606 239,059 223,453
Other revenues 5,202 5,202 20,288 15,086
Total Revenues 6,244,028 6,244,028 6,128,316 (115,712)

EXPENDITURES
Current operations:

General government 796,080 1,413,843 1,267,775 146,068
Public safety 3,188,695 4,889,036 5,308,737 (419,701)
Public works 931,366 931,366 917,605 13,761
Community development 400,208 400,208 382,860 17,348
Parks and recreation 510,582 510,582 533,244 (22,662)
Total Expenditures 5,826,931 8,145,035 8,410,221 (265,186) Excess (deficiency) of revenues over
expenditures 417,097 (1,901,007) (2,281,905) (380,898)

OTHER FINANCING SOURCES (USES)
Transfers out (592,576) (592,576) (498,398) 94,178
Total other financing sources (uses) (592,576) (592,576) (498,398) 94,178 Net change in fund balance $ (175,479) $ (2,493,583) (2,780,303) $ (286,720) Fund balance - July 1, 2024 8,816,153
Fund balance - June 30, 2025 $ 6,035,850
49 207

CITY OF WILLIAMS
CDBG

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $ - $ - $ 2,849,686 $ 2,849,686
Interest 70,000 70,000 39,515 (30,485)
Other revenues - - 184,052 184,052
Total Revenues 70,000 70,000 3,073,253 3,003,253

EXPENDITURES
Current operations:

Community development 230,000 230,000 2,882,357 (2,652,357) Total Expenditures 230,000 230,000 2,882,357 (2,652,357) Net change in fund balance $ (160,000) $ (160,000) 190,896 $ 350,896 Fund balance - July 1, 2024 495,160
Fund balance - June 30, 2025 $ 686,056
50 208

CITY OF WILLIAMS

DEVELOPMENT FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Charges for service $ 50,000 $ 50,000 $ 301,899 $ 251,899 Interest - - 55,307 55,307
Total Revenues 50,000 50,000 357,206 307,206

EXPENDITURES
Current operations:

General government 50,000 50,000 - 50,000
Public safety - - 101,648 (101,648)
Public works - 1,418,641 - 1,418,641
Parks and recreation - - 10,463 (10,463)
Capital outlay - - 479,656 (479,656)
Total Expenditures 50,000 1,468,641 591,767 876,874
Excess (deficiency) of revenues over
expenditures - (1,418,641) (234,561) 1,184,080

OTHER FINANCING SOURCES (USES)
Transfers out - - (1,873,559) (1,873,559)
Total other financing sources (uses) - - (1,873,559) (1,873,559) Net change in fund balance $ - $ (1,418,641) (2,108,120) $ (689,479) Fund balance - July 1, 2024 3,573,247
Fund balance - June 30, 2025 $ 1,465,127
51 209

CITY OF WILLIAMS

STREETS FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Sales taxes $ 148,873 $ 148,873 $ 156,643 $ 7,770
Local taxes 140,473 140,473 429,183 288,710
Intergovernmental - - 35,455 35,455
Total Revenues 289,346 289,346 621,281 331,935

EXPENDITURES
Current operations:

Public works 153,954 153,954 252,015 (98,061)
Debt service:

Principal - - 100,000 (100,000)
Capital outlay - - 401,799 (401,799)
Total Expenditures 153,954 153,954 753,814 (599,860)
Excess (deficiency) of revenues over
expenditures 135,392 135,392 (132,533) (267,925)

OTHER FINANCING SOURCES (USES)
Proceeds from debt issuance - - 522,467 522,467
Total other financing sources (uses) - - 522,467 522,467 Net change in fund balance $ 135,392 $ 135,392 389,934 $ 254,542 Fund balance (deficit) - July 1, 2024 (1,651,454)
Fund balance (deficit) - June 30, 2025 $ (1,261,520)
52 210

CITY OF WILLIAMS

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY As of June 30, 2025
Last 10 Years*
Measurement Period
2024 2023 2022 2021 2020
Proportion of the net pension
liability 0.03310 % 0.03261 % 0.03141 % 0.02508 % 0.02706 % Proportionate share of the net
pension liability $ 4,013,915 $ 4,067,625 $ 3,627,898 $ 1,356,303 $ 2,944,783 Covered payroll $ 3,683,199 $ 3,373,186 $ 3,084,891 $ 2,713,771 $ 2,664,639 Proportionate share of the net
pension liability as a
percentage of covered payroll 108.98 % 120.59 % 117.60 % 49.98 % 110.51 % Plan fiduciary net position as a
percentage of the total pension
liability 78.10 % 76.21 % 76.68 % 88.29 % 75.10 %
Notes to Schedule:

Changes in assumptions – In 2024 and 2023, there were no changes in assumptions. In 2022, the accounting discount rate was reduced from 7.15 percent to 6.90 percent. In 2021, 2020 and 2019, there were no changes in assumptions. In 2018, assumptions for individual salary increases and overall payroll growth were reduced from

3.00 percent to 2.75 percent. In 2017, the discount rate was lowered from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate. 53 211

CITY OF WILLIAMS

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (CONTINUED) As of June 30, 2025
Last 10 Years*
Measurement Period
2019 2018 2017 2016 2015
Proportion of the net pension
liability 0.02547 % 0.02426 % 0.02367 % 0.00131 % 0.00200 % Proportionate share of the net
pension liability $ 2,609,670 $ 2,337,926 $ 2,347,830 $ 1,975,856 $ 1,621,237 Covered payroll $ 2,472,304 $ 2,343,484 $ 2,241,833 $ 1,765,251 $ 1,795,574 Proportionate share of the net
pension liability as a
percentage of covered payroll 105.56 % 99.76 % 104.73 % 111.93 % 90.29 % Plan fiduciary net position as a
percentage of the total pension
liability 75.30 % 73.69 % 73.29 % 74.06 % 78.40 %
54 212

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, 2025
Last 10 Years*
Fiscal Year-End
2025 2024 2023 2022 2021
Contractually required contribution
(actuarially determined) $ 695,659 $ 580,534 $ 564,351 $ 510,998 $ 454,857 Contributions in relation to
the actuarially determined
contributions 5,271,921 580,534 564,351 510,998 454,857 Contribution deficiency (excess) $ (4,576,262) $ - $ - $ - $ - Covered payroll $ 4,111,026 $ 3,683,199 $ 3,373,186 $ 3,084,891 $ 2,713,771 Contributions as a percentage of
covered payroll 128.24 % 15.76 % 16.73 % 16.56 % 16.76 % 55 213

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, 2025
Last 10 Years*
Fiscal Year-End
2020 2019 2018 2017 2016
Contractually required contribution
(actuarially determined) $ 549,281 $ 488,958 $ 426,409 $ 451,245 $ 484,435 Contributions in relation to
the actuarially determined
contributions 549,281 488,958 426,409 451,245 484,435
Contribution deficiency (excess) $ - $ - $ - $ - $ -
Covered payroll $ 2,664,639 $ 2,472,304 $ 2,343,484 $ 2,241,833 $ 1,765,251 Contributions as a percentage of
covered payroll 20.61 % 19.78 % 18.20 % 20.13 % 27.44 % 56 214

CITY OF WILLIAMS

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION ON

BUDGETARY ACCOUNTING AND CONTROL
FOR THE YEAR ENDED JUNE 30, 2025
NOTE A: BUDGETARY BASIS OF ACCOUNTING
Formal budgetary integration is employed as a management control device during the year for the General Fund, Special Revenue funds, and Capital Project fund and is controlled at the department level for the City. Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP).

The following procedures are performed by the City in establishing the budgetary data reflected in the financial statements:
(1) The City Administrator submits to the City Council a recommended operating budget for the fiscal year commencing the following July 1. The operating budget includes recommended expenditures and the means of financing them.
(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. (4) Any revisions which alter the total expenditures of any fund must be approved by the City Council. Budgeted amounts are as originally adopted or as subsequently revised by the City Council. All unused appropriations for 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, 2025, the following nonmajor special revenue and nonmajor capital projects fund did not have annual appropriated budgets:
· CFD No. 2023-1
· 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. 57 215

COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS

AND SCHEDULES
216

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 City parks and street lighting.

CFD No. 2023-1
This fund is used to account for revenues and expenditures related to the Community Facilities District (CFD) No. 2023-1.

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
This fund is used for expenditures for replacement and renovation of existing infrastructure, and renovation and building of new city facilities. The revenues for this fund are generated from operations over expenditures for those operations.
58 217

CITY OF WILLIAMS

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS
JUNE 30, 2025
Special Revenue Funds
Traffic Safety
Lighting &
Landscaping
CFD No.
2023-1
ASSETS
Cash and investments $ 109 $ 195,070 $ 2,593
Receivables:

Accounts - 13,262 289
Total Assets $ 109 $ 208,332 $ 2,882

LIABILITIES
Accounts payable and accrued liabilities $ - $ 2,111 $ - Total Liabilities - 2,111 -
FUND BALANCES (DEFICITS):

Restricted 109 206,221 2,882
Total fund balances (deficits) 109 206,221 2,882
Total Liabilities and Fund Balances (Deficits) $ 109 $ 208,332 $ 2,882 59 218

CITY OF WILLIAMS

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS (CONTINUED)
JUNE 30, 2025
Special Revenue Funds
Recycling
Grant
Law
Enforcement
Grant Gaming Grant
ASSETS
Cash and investments $ - $ 70,302 $ 13,451
Receivables:

Accounts - - -
Total Assets $ - $ 70,302 $ 13,451

LIABILITIES
Accounts payable and accrued liabilities $ - $ - $ -
Total Liabilities - - -
FUND BALANCES (DEFICITS):

Restricted - 70,302 13,451
Total fund balances (deficits) - 70,302 13,451
Total Liabilities and Fund Balances (Deficits) $ - $ 70,302 $ 13,451 60 219

CITY OF WILLIAMS

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEETS (CONTINUED)
JUNE 30, 2025
Special
Revenue
Funds Capital Projects
Police Grant Capital Projects
Total
Non-major
Governmental
Funds
ASSETS
Cash and investments $ - $ 107,086 $ 388,611
Receivables:

Accounts - - 13,551
Total Assets $ - $ 107,086 $ 402,162

LIABILITIES
Accounts payable and accrued liabilities $ - $ - $ 2,111 Total Liabilities - - 2,111
FUND BALANCES (DEFICITS):

Restricted - 107,086 400,051
Total fund balances (deficits) - 107,086 400,051
Total Liabilities and Fund Balances (Deficits) $ - $ 107,086 $ 402,162 61 220

CITY OF WILLIAMS

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED JUNE 30, 2025
Special Revenue Funds
Traffic Safety
Lighting &
Landscaping
CFD No.
2023-1

REVENUES
Property taxes $ - $ 132,041 $ -
Business license fees - - 2,882
Charges for services 13,859 - -
Intergovernmental - - -
Interest - 9,575 -
Total Revenues 13,859 141,616 2,882

EXPENDITURES
Current operations:

Public safety - - -
Public works 880 115,429 -
Parks and recreation - - -
Total Expenditures 880 115,429 -
Excess (deficiency) of revenues over expenditures 12,979 26,187 2,882

OTHER FINANCING SOURCES (USES)
Transfers out - (12,445) -
Total Other Financing Sources (Uses) - (12,445) -
Net change in fund balance 12,979 13,742 2,882
Fund balance (deficit) - July 1, 2024 (12,870) 192,479 - Fund balance (deficit) - June 30, 2025 $ 109 $ 206,221 $ 2,882 62 221

CITY OF WILLIAMS

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2025
Special Revenue Funds
Recycling
Grant
Law
Enforcement
Grant Gaming Grant

REVENUES
Property taxes $ - $ - $ -
Business license fees - - -
Charges for services - - -
Intergovernmental 5,000 194,663 -
Interest - 4,788 -
Total Revenues 5,000 199,451 -

EXPENDITURES
Current operations:

Public safety - 194,500 -
Public works - - -
Parks and recreation 5,000 - -
Total Expenditures 5,000 194,500 -
Excess (deficiency) of revenues over expenditures - 4,951 -

OTHER FINANCING SOURCES (USES)
Transfers out - - -
Total Other Financing Sources (Uses) - - -
Net change in fund balance - 4,951 -
Fund balance (deficit) - July 1, 2024 - 65,351 13,451
Fund balance (deficit) - June 30, 2025 $ - $ 70,302 $ 13,451 63 222

CITY OF WILLIAMS

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENTS OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2025
Special
Revenue
Funds Capital Projects
Police Grant Capital Projects
Total
Non-major
Governmental
Funds

REVENUES
Property taxes $ - $ - $ 132,041
Business license fees - - 2,882
Charges for services - - 13,859
Intergovernmental - - 199,663
Interest - 4,787 19,150
Total Revenues - 4,787 367,595

EXPENDITURES
Current operations:

Public safety 4,897 - 199,397
Public works - - 116,309
Parks and recreation - - 5,000
Total Expenditures 4,897 - 320,706
Excess (deficiency) of revenues over expenditures (4,897) 4,787 46,889

OTHER FINANCING SOURCES (USES)
Transfers out - - (12,445)
Total Other Financing Sources (Uses) - - (12,445)
Net change in fund balance (4,897) 4,787 34,444
Fund balance (deficit) - July 1, 2024 4,897 102,299 365,607 Fund balance (deficit) - June 30, 2025 $ - $ 107,086 $ 400,051 64 223

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, 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Charges for service $ 34,000 $ 34,000 $ 13,859 $ (20,141) Total Revenues 34,000 34,000 13,859 (20,141)

EXPENDITURES
Current operations:

Public works 34,000 34,000 880 33,120
Total Expenditures 34,000 34,000 880 33,120
Net change in fund balance $ - $ - 12,979 $ 12,979
Fund balance (deficit) - July 1, 2024 (12,870)
Fund balance - June 30, 2025 $ 109
65 224

CITY OF WILLIAMS

LIGHTING & LANDSCAPING - SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Property taxes $ 128,275 $ 128,275 $ 132,041 $ 3,766
Interest - - 9,575 9,575
Total Revenues 128,275 128,275 141,616 13,341

EXPENDITURES
Current operations:

Public works 115,830 115,830 115,429 401
Total Expenditures 115,830 115,830 115,429 401
Excess (deficiency) of revenues over
expenditures 12,445 12,445 26,187 13,742

OTHER FINANCING SOURCES (USES)
Transfers out (12,445) (12,445) (12,445) -
Total other financing sources (uses) (12,445) (12,445) (12,445) - Net change in fund balance $ - $ - 13,742 $ 13,742
Fund balance - July 1, 2024 192,479
Fund balance - June 30, 2025 $ 206,221
66 225

CITY OF WILLIAMS

RECYCLING GRANT - NONMAJOR SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(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, 2024 -
Fund balance - June 30, 2025 $ -
67 226

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, 2025
Budgeted Amounts
Original Final
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)

REVENUES
Intergovernmental $ 100,000 $ 100,000 $ 194,663 $ 94,663 Use of money and property - - 4,788 4,788
Total Revenues 100,000 100,000 199,451 99,451

EXPENDITURES
Current operations:

Public safety 100,000 100,000 194,500 (94,500)
Total Expenditures 100,000 100,000 194,500 (94,500)
Net change in fund balance $ - $ - 4,951 $ 4,951
Fund balance - July 1, 2024 65,351
Fund balance - June 30, 2025 $ 70,302
68 227

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.

CalPERS Internal Service
This fund is used to account for funds set aside to pay the City's CalPERS 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 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.
69 228

CITY OF WILLIAMS

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET POSITION
JUNE 30, 2025
Vehicle CalPERS Insurance Infrastructure Total
ASSETS
Cash and investments $ 84,787 $ - $ 1,005,849 $ 636,077 $ 1,726,713 Receivables:

Loans - - 35,863 - 35,863
Total Assets 84,787 - 1,041,712 636,077 1,762,576

LIABILITIES
Accounts payable - - 25,282 - 25,282
Total Liabilities - - 25,282 - 25,282

NET POSITION
Unrestricted 84,787 - 1,016,430 636,077 1,737,294
Total Net Position $ 84,787 $ - $ 1,016,430 $ 636,077 $ 1,737,294 70 229

CITY OF WILLIAMS

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION FOR THE YEAR ENDED JUNE 30, 2025
Vehicle CalPERS Insurance Infrastructure Total

OPERATING REVENUES
Other revenues $ - $ - $ 22,848 $ - $ 22,848
Total Operating Revenues - - 22,848 - 22,848

OPERATING EXPENSES
General administration 84,364 - 407,169 - 491,533
Salaries and benefits - 339,765 - - 339,765
Total Operating Expenses 84,364 339,765 407,169 - 831,298 Operating Income (Loss) (84,364) (339,765) (384,321) - (808,450)

NON-OPERATING REVENUE
Interest income - - 39,422 19,151 58,573
Total Non-Operating Revenue - - 39,422 19,151 58,573

TRANSFERS
Transfers In 50,000 - 622,138 100,000 772,138
Change in Net Position (34,364) (339,765) 277,239 119,151 22,261 Net Position - July 1, 2024 119,151 339,765 739,191 516,926 1,715,033 Net Position - June 30, 2025 $ 84,787 $ - $ 1,016,430 $ 636,077 $ 1,737,294 71 230

CITY OF WILLIAMS

INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS
JUNE 30, 2025
Vehicle CalPERS Insurance Infrastructure Total

CASH FLOWS FROM OPERATING

ACTIVITIES
Cash received from customers $ - $ - $ 25,659 $ - $ 25,659 Cash paid to suppliers (84,364) - (409,990) - (494,354) Cash paid to employees - (339,765) - - (339,765)
Net Cash Used for Operating
Activities (84,364) (339,765) (384,331) - (808,460)

CASH FLOWS FROM NONCAPITAL

FINANCING ACTIVITIES
Transfers from other funds 50,000 - 622,138 100,000 772,138 Net Cash Provided by Noncapital
Financing Activities 50,000 - 622,138 100,000 772,138

CASH FLOWS FROM INVESTING

ACTIVITIES
Interest income - - 39,422 19,151 58,573
Net Cash Provided by Investing
Activities - - 39,422 19,151 58,573
Net (Decrease) Increase in Cash
and Cash Equivalents (34,364) (339,765) 277,229 119,151 22,251 Cash and Cash Equivalents - July 1,
2024 119,151 339,765 728,620 516,926 1,704,462
Cash and Cash Equivalents - June 30,
2025 $ 84,787 $ - $ 1,005,849 $ 636,077 $ 1,726,713

RECONCILIATION OF OPERATING

LOSS TO NET CASH USED FOR
OPERATING ACTIVITIES:

Operating Loss $ (84,364) $ (339,765) $ (384,321) $ - $ (808,450) Adjustments to reconcile operating loss
to net cash used for operating
activities:

Changes in assets and liabilities:
(Increase) decrease in:

Loans receivable - - 2,811 - 2,811
Increase (decrease) in:

Accounts payable - - (2,821) - (2,821)
Net Cash Used for Operating
Activities $ (84,364) $ (339,765) $ (384,331) $ - $ (808,460) 72 231
____________________________________________________________________________________________

CITY OF WILLIAMS

SINGLE AUDIT AND RELATED REPORTS

FOR THE YEAR ENDED
JUNE 30, 2025
___________________________________________________________________________________________ MUN CPAs, LLP
1760 CREEKSIDE OAKS DRIVE, SUITE 160
SACRAMENTO, CALIFORNIA 95833
232

CITY OF WILLIAMS

SINGLE AUDIT AND RELATED REPORTS
FOR THE YEAR ENDED JUNE 30, 2025

TABLE OF CONTENTS
Page
Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1 - 2
Independent Auditor's Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance 3 - 5 Schedule of Expenditures of Federal Awards 6
Notes to the Schedule of Expenditures of Federal Awards 7 Schedule of Findings and Questioned Costs 8 - 11
Schedule of Prior Year Findings 12
233
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
City of 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, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated July 29, 2026.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

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

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. 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 findings and questioned costs as items 2025-001 and 2025-002 that we consider to be significant deficiencies.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

City's Response to 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 findings and questioned costs. 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 responses.

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MUN CPAs, LLP 1760 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 www.muncpas.com GLENDALE•ROSEVILLE•SACRAMENTO•ZEPHYR COVE•KAUAI
234
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Sacramento, California
July 29, 2026
2 MUNCPASLLP
235
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL

CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the City Council
City of Williams, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of Williams’s (the City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2025. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2025.

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

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

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

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

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MUN CPAs, LLP 1760 Creekside Oaks Drive, Suite 160, Sacramento, CA 95833 www.muncpas.com GLENDALE•ROSEVILLE•SACRAMENTO•ZEPHYR COVE•KAUAI
236
In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
· Exercise professional judgment and maintain professional skepticism throughout the audit. · Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. · Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.

A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

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

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

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.

Accordingly, this report is not suitable for any other purpose. 4 237
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated July 29, 2026, which contained unmodified opinions on those financial statements.

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

Sacramento, California
July 29, 2026
5 MUN CPAs LLP
238

CITY OF WILLIAMS

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2025
Federal Grantor/Pass-Through Grantor Program
Federal AL
Number
Pass-Through Entity
Identifying Number/
Grant Number
Federal
Expenditures
U.S. Department of Housing and Urban Development
Passed-Through State of California Department of
Housing and Community Development:

HOME Investment Partnerships Program 14.239 21-HOME-16102 $ 2,880,644 Total U.S. Department of Housing and Urban Development 2,880,644 Total Expenditures of Federal Awards $ 2,880,644
6 239

CITY OF WILLIAMS

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2025
NOTE 1: REPORTING ENTITY
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Williams (the City). The City reporting entity is defined in Note 1 of the City's Financial Report. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the schedule. When federal awards were received from a passthrough entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity.

NOTE 2: BASIS OF ACCOUNTING
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the City and is presented on accounting principles generally accepted in the United States of America. The information in this schedule is presented on the accrual basis of accounting and in accordance with requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

NOTE 3: RELATIONSHIP TO FINANCIAL STATEMENTS
The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree, in all material respects, to amounts reported within the City's basic financial statements. Federal award revenues are reported principally in the City's financial statements as intergovernmental revenues in the governmental funds.

NOTE 4: CLAIMS
The City has received federal grants for specific purposes that are subject to review and audit by the Federal Government pass-through entity. Although such audits could result in expenditure disallowance under grant terms, any required reimbursements are not expected to be material which have not already been recorded.

NOTE 5: INDIRECT COSTS
The City elected not to use the 10% de minimis indirect cost rate, and did not charge indirect costs to federal grants during the year ended June 30, 2025.
7 240

CITY OF WILLIAMS

SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2025

SECTION I - SUMMARY OF AUDITOR'S RESULTS
Financial Statements
Type of auditor's report issued: Unmodified
Internal control over financial reporting:

Material weakness(es) identified? No
Significant deficiency(ies) identified Yes
Noncompliance material to financial statements noted? No Federal Awards
Internal control over major programs:

Material weakness(es) identified? No
Significant deficiency(ies) identified? None reported
Type of auditor's report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with section 200.516 of the Uniform Guidance No
Identification of Major Programs:

HOME Investment Partnerships Program, 14.239
Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee? No
8 241

CITY OF WILLIAMS

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2025

SECTION II - FINANCIAL STATEMENT FINDINGS
Findings relating to the financial statements which are required to be reported in accordance with Generally Accepted Government Auditing Standards.

Finding 2025-001: Net Pension Liability Calculation (Significant Deficiency - Repeat Finding) Criteria
Under GASB Statement No. 68, employers participating in cost-sharing defined benefit pension plans must recognize their proportionate share of the net pension liability (NPL), pension expense, and deferred inflows/outflows of resources. Accurate reporting requires reconciliation of contributions to the general ledger.

Condition
During our review of the net pension liability, we noted:

1. The City misclassified portions of their CalPERS contributions as personnel expenses versus retirement expense. The misclassification resulted in an incorrect calculation of deferred outflows of resources related to the net pension liability.

2. The City paid down the unfunded actuarial liability (UAL), however, the City utilized restricted connection fees in the Development special revenue fund for the portion of the payment related to the Water and Sewer enterprise funds. This resulted in the incorrect use of restricted funds and expenditures recorded in the incorrect fund.

3. The City was not recording GASB 68 activity in their general ledger for the past 2 years, affecting beginning fund balance/net position.

Cause
The misclassification of certain CalPERS 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 misinterpreted the California Government Code regarding the use of restricted connection fees.

Effect
Adjustments were required to properly reflect balances of the net pension liability, deferred outflows of resources and deferred inflows of resources related to pension. In addition, transfer adjustments were made to properly reflect restricted net position in the Water and Sewer funds.

Recommendation
We recommend the City reconcile all CalPERS contributions to the general ledger on a monthly basis and ensure proper classification of CalPERS contributions. We recommend the City properly record restricted connection fees received, related expenditures, and restricted net position in the Water and Sewer funds to ensure the fees are utilized appropriately.

View of Responsible Officials
The City concurs with the recommendation. During fiscal year 2025, the City identified and corrected a payroll allocation setup issue that had resulted in certain CalPERS empoyer contributions being recorded to wage expense rather than retirement expense. The City has implemented additional year-end review procedures to verify the proper classification of pension-related expenditures and funding allocations.

In addition, the City will perform an annual reconciliation of all CalPERS contributions to the general ledger and amounts used in the GASB 68 pension calculation to ensure pension-related expenses, deferred inflows and outflows, and net pension liability balances are accurately reported. The City has also reviewed procedures related to the use of restricted connection fee revenues and will ensure that expenditures and related funding sources are recorded in the appropriate funds and in accordance with applicable restrictions. Management believes these enhanced review and reconciliation procedures will strengthen internal controls and help prevent similar issues in future reporting periods.
9 242

CITY OF WILLIAMS

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2025
Finding 2025-002: Long-term Debt (Significant Deficiency) Criteria
Governmental funds are accounted for using the current financial resources measurement focus. Under this measurement focus, only current liabilities are included on the balance sheet with proceeds from governmental longterm liabilities reported as other financing sources on the operating statement.

Condition
During our procedures over governmental long-term liabilities, we noted the City received loan proceeds during the year and incorrectly recorded a long-term liability on the balance sheet in a special revenue fund.

Cause
The City incorrectly recorded governmental long-term liabilities in accordance with the accrual basis of accounting rather than the modified accrual basis of accounting.

Effect
Adjustments were required to remove the long-term liability from the governmental fund and properly reflect loan proceeds and debt service principal expenditures.

Recommendation
We recommend the City record long-term liabilities in governmental funds in accordance with the modified accrual basis of accounting.

View of Responsible Officials
The City concurs with the recommendation. The City has reviewed the accounting treatment for governmental longterm debt and the distinction between modified accrual accounting in governmental funds and full accrual accounting used in the government-wide financial statements.

To address this finding, the City has corrected the accounting entry identified during the audit and implemented additional year-end financial reporting review procedures for debt transactions. Going forward, management will review all loan proceeds, debt issuances, and debt service activity to ensure governmental fund transactions are recorded in accordance with the modified accrual basis of accounting and that long-term liabilities are reported only in the government-wide financial statements. These procedures are expected to reduce the risk of similar reporting errors in future years.
10 243

CITY OF WILLIAMS

SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2025

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS None
11 244

CITY OF WILLIAMS

SCHEDULE OF PRIOR YEAR FINDINGS
JUNE 30, 2025
Finding 2024-001: Loans Receivable (Significant Deficiency) Condition
Errors were identified in the prior year recorded amounts of loans receivable, deferred outflows of resources, 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.

Status
Implemented
Finding 2024-002: Grants and Taxes (Significant Deficiency) Condition
Certain grant and tax receivables along with associated revenues were not recorded at year-end.

Recommendation
We recommend the City continue to review all potential receivables at year-end to ensure that all earned and measurable revenues are properly recorded under the appropriate basis of accounting for each fund type.

Status
Implemented
Finding 2024-003: Net Pension Liability Calculation (Significant Deficiency) Condition
During our review of the net pension liability, we noted:

1. The City misclassified portions of their CalPERS 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.

2. As part of the CalPERS 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 factors are used to determine an employer's proportionate share of the net pension liability. The City mistakenly used the incorrect employer allocations in the calculation of the net pension liability for the prior and current year.

Recommendation
We recommend the City reconcile all CalPERS contributions to the general ledger on a monthly basis and ensure proper classification of CalPERS 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.

Status
Partially implemented.
12 245
City of Williams DATE: September 16, 2026
City Council ITEM: 15.

Agenda Report CATEGORY: New Business
SUBJECT: Adopt Resolution No. 26 - 33 Authorizing the Regional Early Action Planning Grants of 2021 (REAP 2.0) Funding Allocation and Memorandum of Understanding(MOU) with the County of Colusa for the Williams “E” Street Corridor Improvements.

BACKGROUND
The County of Colusa was awarded $2.4 million in REAP 2.0 Tribal and Rural Allocation funding for place-based planning and implementation activities supporting the program’s housing and vehicle-miles-traveled (VMT) objectives. The County’s original planned uses, approved by the Board of Supervisors on December 20, 2022, did not come to fruition. Rather than allow the awarded funding to remain tied to projects that cannot proceed, the County and City of Williams worked with the California Department of Housing and Community Development (HCD) to identify an eligible and timely use that would provide a direct local transportation and community benefit.

The resulting opportunity is to direct the REAP 2.0 funding to the City of Williams’ “E” Street Corridor Improvements. The City has received funding to support a comprehensive redesign of the “E” Street corridor. The corridor improvements are intended to improve multimodal transportation and provide a direct connection to the downtown area, with particular benefits to alternative transportation options serving the elementary, middle, and high school campuses.

In conjunction with the County, the City worked with HCD on an amendment to the County’s REAP 2.0 application to authorize expenditures for the Williams “E” Street Corridor Improvements. HCD approved the amendment on August 3, 2026, allocating the $2.4 million REAP 2.0 award for the Williams “E” Street Corridor Improvements.

REAP 2.0 PROGRAM OVERVIEW
REAP 2.0 is administered by HCD in collaboration with other state partners and supports planning and implementation activities that advance housing and climate goals. HCD identifies eligible activities that include, among other categories, realizing multimodal communities, shifting travel behavior by reducing driving, increasing transit ridership, and infrastructure investments that support infill development and housing supply, choice, and affordability.

The proposed use is therefore structured as a suballocation from the County to the City, with the City responsible for using the funds only for eligible expenditures associated with the amended project and complying with the applicable REAP 2.0 requirements. HCD guidance states that the County, as the grantee, remains responsible for suballocations meeting REAP 2.0 requirements.

PROPOSED FUNDING ALLOCATION
Funding Source Amount Proposed Use
County of Colusa REAP 2.0
Tribal and Rural Allocation
$2,406,513.04 Williams “E” Street Corridor
Improvements
246
The allocation is limited to the amount actually available under the County’s amended REAP 2.0 award and the approved project. The MOU is intended to establish the administrative and compliance framework for the transfer, use, reimbursement, monitoring, reporting, records retention, and closeout of the suballocated funds.

TIME-SENSITIVE EXPENDITURE REQUIREMENTS
Time is of the essence. Based on the grant information provided to the City, the eligible expenditure period is between July 1, 2021 through December 31, 2026, and final expenditures must be incurred by December 31, 2026. The City and County must therefore move promptly from authorization to implementation, contracting, invoicing, and reimbursement.

The final draw for grant reimbursement is identified as being due to HCD by June 30, 2027. This post-expenditure reimbursement deadline does not extend the December 31, 2026 deadline for incurring eligible expenditures.

The proposed allocation provides a practical and timely path to deploy the County’s otherwise unused REAP 2.0 funding to a City project that advances multimodal transportation objectives and provides a direct connection to downtown and nearby schools. HCD’s August 3, 2026 approval of the grant amendment creates the necessary basis for the County and City to proceed with a formal subrecipient arrangement. Council approval of the resolution and MOU will allow staff to move forward immediately while maintaining appropriate grant controls and accountability.

MOU FRAMEWORK
The proposed MOU replaces the prior agreement used for the County’s REAP 2.0 suballocation.

The revised agreement is between the County of Colusa and the City of Williams only and removes all references to the former subrecipient. It retains the substantive administrative and compliance protections of the prior MOU while revising the project, parties, term, jurisdiction, invoicing, oversight, and other provisions to fit the Williams “E” Street Corridor Improvements. • Eligible Use of Funds – City funds will be used only for eligible project costs authorized by the amended REAP 2.0 application and applicable program requirements. • Financial Oversight and Records – City will maintain accounting records and supporting documentation sufficient to demonstrate eligible expenditures and compliance. • Invoicing and Reimbursement – City will submit invoices and supporting documentation to the County in a timely manner, using procedures established by the County and consistent with HCD requirements.
• Monitoring and Reporting – County and HCD may monitor project performance and expenditures; City will provide documentation and reports reasonably required for grant administration.
• Compliance and Remedies – The MOU incorporates applicable REAP 2.0 requirements and provides remedies for noncompliance, including termination and repayment to the extent required.
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• Term and Closeout – The agreement is structured to remain in effect through completion of required expenditures and grant closeout.

FISCAL IMPACT
The proposed action makes up to $2,406,513.04 in REAP 2.0 funding available for eligible costs of the Williams “E” Street Corridor Improvements. The funding is grant revenue and is subject to the conditions of the County’s REAP 2.0 award, the HCD-approved amendment, and the MOU.

The grant funding allows the City to be reimbursed for eligible “E” Corridor improvement expenditures incurred on or after July 1, 2021, and through December 31, 2026.

RECOMMENDATION
Staff recommends that the City Council: (1) approve the allocation and acceptance of up to $2,406,513.04 of Regional Early Action Planning Grants of 2021 (REAP 2.0) Tribal and Rural Allocation funding made available through the County of Colusa for the Williams “E” Street Corridor Improvements; (2) approve and authorize execution of the Memorandum of Understanding (“MOU”) between the County of Colusa and the City of Williams governing the suballocation and administration of the REAP 2.0 funds; (3) adopt the attached resolution authorizing the MOU and the use of the funds for eligible project expenditures; and (4) authorize the City Manager, or designee, to execute documents and take administrative actions necessary to implement the MOU and comply with applicable REAP 2.0 requirements, subject to the limits of the grant award and approved project.

ATTACHMENTS
• Resolution No. 26 -33 Authorizing the REAP 2.0 Funding Allocation and Memorandum of Understanding with the County of Colusa
• Memorandum of Understanding Between the County of Colusa and the City of Williams Regarding REAP 2.0 Funding for the Williams “E” Street Corridor Improvements Submitted and Prepared by:

Rex Greenbaum, Finance Director
Reviewed by:

Yvonne Kimball, City Manager
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RESOLUTION NO. 26-33

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WILLIAMS AUTHORIZING THE REAP 2.0 FUNDING ALLOCATION AND MEMORANDUM OF UNDERSTANDING WITH THE COUNTY OF COLUSA FOR THE WILLIAMS “E” STREET CORRIDOR
WHEREAS the Regional Early Action Planning Grants of 2021 (“REAP 2.0”) Tribal and Rural Allocation provides funding for eligible place-based planning and implementation activities that advance housing, multimodal transportation, and related program objectives; and WHEREAS, the County of Colusa was awarded approximately $2.4 million in REAP 2.0 funding, and the original planned uses approved by the County Board of Supervisors on December 20, 2022 did not come to fruition; and
WHEREAS, the County of Colusa and the City of Williams have worked cooperatively to identify an eligible use of the REAP 2.0 funds that will provide a direct local benefit through the Williams “E” Street Corridor Improvements; and
WHEREAS, the City’s “E” Street Corridor Improvements will improve multimodal transportation and provide a direct connection to the downtown area, including enhanced alternative transportation options in the vicinity of the elementary, middle, and high school campuses; and WHEREAS, the County and City worked with the California Department of Housing and Community Development (“HCD”) to amend the County’s REAP 2.0 application to permit the use of REAP

2.0 funds for the Williams “E” Street Corridor Improvements; and WHEREAS, HCD formally approved the amendment on August 3, 2026, allocating the $2.4 million REAP 2.0 award for the Williams “E” Street Corridor Improvements; and WHEREAS, the eligible expenditure period identified for the REAP 2.0 award is July 1, 2021 through December 31, 2026, and the final eligible expenditures must be incurred by December 31, 2026; and
WHEREAS, the County, as the REAP 2.0 grantee, and the City, as subrecipient, desire to enter into a Memorandum of Understanding establishing the terms and conditions governing the suballocation, use, reimbursement, monitoring, reporting, records, and closeout of the REAP 2.0 funds; and WHEREAS, the City Council finds that authorizing the MOU and accepting the REAP 2.0 suballocation will allow the City to proceed promptly with eligible project activities while maintaining appropriate fiscal and grant compliance controls.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Williams, County of Colusa, State of California, as follows:

1. The City Council approves and authorizes acceptance of a suballocation of up to $2,400,000 in REAP 2.0 Tribal and Rural Allocation funds from the County of Colusa for eligible expenditures associated with the Williams “E” Street Corridor Improvements, subject to the HCD-approved amendment, the County’s REAP 2.0 award, and applicable program requirements. 249

2. The City Council approves the Memorandum of Understanding between the County of Colusa and the City of Williams, attached hereto as Exhibit A and incorporated herein by reference, governing the REAP 2.0 suballocation.

3. The Mayor is authorized to execute the MOU on behalf of the City, and the City Manager, or designee, is authorized to execute such implementation, reimbursement, reporting, and grant-administration documents as are reasonably necessary to carry out the MOU, provided such actions are consistent with the approved project, available funding, and applicable REAP 2.0 requirements.

4. City staff is directed to establish and administer the appropriate accounting and budgetary procedures for the REAP 2.0 funds and to ensure that expenditures are documented and incurred within the applicable grant expenditure period.

5. The City Manager, or designee, is authorized to coordinate with the County of Colusa and HCD regarding grant administration, reporting, reimbursement, and closeout, including actions necessary to meet the December 31, 2026 expenditure deadline and the applicable final reimbursement deadline.

6. All actions previously taken by City staff that are consistent with the intent and purposes of this Resolution are hereby ratified and confirmed.

PASSED AND ADOPTED this 16th day of September, 2026 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

APPROVED:
_________________________________________
Katherine Dunlap, Mayor of the City of Williams
ATTEST: APPROVED AS TO FORM:
_________________________________________
Mariana Pineda, City Clerk

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MEMORANDUM OF UNDERSTANDING
REAP 2.0 Suballocation – Williams “E” Street Corridor Improvements

BETWEEN THE COUNTY OF COLUSA AND THE CITY OF WILLIAMS
This Memorandum of Understanding (“MOU”) is entered into by and between the County of Colusa, California (“County”), and the City of Williams, California (“City”), collectively referred to as the “Parties.”

RECITALS
WHEREAS, the Regional Early Action Planning Grants of 2021 (“REAP 2.0”) is a State of California program administered by the California Department of Housing and Community Development (“HCD”) in collaboration with other state partners and is intended to advance housing and climate goals through eligible planning and implementation activities;
WHEREAS, the REAP 2.0 Tribal and Rural Allocation provides funding to eligible rural communities for place-based planning and implementation activities that support REAP 2.0 goals and objectives; WHEREAS, the County of Colusa was awarded approximately $2,406,513.04 million in REAP 2.0 funding, and the original planned uses approved by the County Board of Supervisors on December 20, 2022 did not come to fruition;
WHEREAS, the County and City identified an opportunity to partner on the Williams “E” Street Corridor Improvements, a project intended to improve multimodal transportation and provide a direct connection to the downtown area, including enhanced alternative transportation options in the vicinity of the City’s elementary, middle, and high school campuses; WHEREAS, the County and City worked with HCD to amend the County’s REAP 2.0 application to permit the use of the REAP 2.0 funds for the Williams “E” Street Corridor Improvements; WHEREAS, HCD formally approved the amendment on August 3, 2026, allocating the $2,406,513.04 REAP 2.0 award for the Williams “E” Street Corridor Improvements; WHEREAS, the County, as the REAP 2.0 grantee, must remain responsible for ensuring that any suballocation satisfies applicable REAP 2.0 requirements, and the City, as subrecipient, desires to accept and administer the suballocated funds for eligible project expenditures; WHEREAS, the Parties desire to establish the terms and conditions under which the County will suballocate REAP 2.0 funds to the City and the City will use, document, report, and close out those funds.
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AGREEMENT

1. SUBALLOCATION
The County hereby suballocates to the City an amount not to exceed $2,406,513.04 from the County’s REAP 2.0 award, subject to the amount actually available, the HCD-approved amended grant application, and all applicable REAP 2.0 requirements. The City accepts the suballocation for the purposes and subject to the conditions of this MOU.

2. PROJECT AND ELIGIBLE USE OF FUNDS
The City shall use the suballocated funds solely for eligible expenditures associated with the Williams “E” Street Corridor Improvements as authorized by the HCD-approved amendment to the County’s REAP 2.0 application. The project is intended to improve multimodal transportation and provide a direct connection to the downtown area, including improvements supporting alternative transportation options in the vicinity of the elementary, middle, and high school campuses. No funds shall be used for an activity that is ineligible under REAP 2.0, the County’s Standard Agreement with HCD, the amended application, or applicable law.

3. FLOW-DOWN OF PROGRAM REQUIREMENTS
The City shall comply with all REAP 2.0 requirements applicable to a subrecipient, including requirements contained in the HCD Standard Agreement, approved application and amendment, final guidelines, reporting and reimbursement procedures, and applicable state and federal laws and regulations. To the extent the County receives additional written requirements from HCD applicable to the suballocation, the County shall provide them to the City, and the City shall comply with those requirements.

4. FINANCIAL OVERSIGHT; ACCOUNTING AND RECORDS
The City shall maintain financial oversight procedures and complete accounting records for all REAP 2.0 funds. Records shall identify the source and use of funds, document eligible costs, and support invoices and reimbursement requests. The City shall maintain records in accordance with applicable HCD and County requirements and shall make records available to the County and HCD upon reasonable request.

5. INVOICING AND REIMBURSEMENT
The City shall submit reimbursement requests and supporting documentation to the County in the form and manner reasonably prescribed by the County and consistent with HCD requirements. Each request shall identify the costs incurred, and include supporting documentation sufficient for the County to determine that the requested costs are eligible. Payment by the County is contingent upon receipt of adequate documentation and the availability of REAP 2.0 funds. The County may withhold or reject costs that are unsupported, ineligible, untimely, or otherwise inconsistent with program requirements. 252

6. REPORTING
The City shall provide the County with project and financial information necessary for the County to satisfy its reporting obligations to HCD. The City shall promptly provide additional information or documentation requested by the County or HCD concerning project progress, expenditures, invoices, performance, or compliance.

7. MONITORING AND AUDIT
The County and HCD shall have the right to monitor the City’s performance and expenditures under this MOU. The City shall cooperate with monitoring, audits, reviews, and other oversight activities and shall provide access to relevant records and personnel as reasonably required.

8. TIMELY EXPENDITURE OF FUNDS
The Parties acknowledge that time is of the essence. Based on the applicable grant requirements, eligible expenditures must be incurred no later than December 31, 2026. The City shall plan and administer the project so that eligible costs are incurred within the authorized expenditure period. The Parties shall cooperate in processing final invoices and reimbursement requests necessary for grant closeout. The final draw for grant reimbursement is expected to be submitted to HCD by June 30, 2027, consistent with the applicable grant instructions.

9. NONCOMPLIANCE; REPAYMENT
If the City uses REAP 2.0 funds for an ineligible or unauthorized purpose, fails to provide required documentation, or otherwise fails to comply with applicable grant requirements, the County may suspend reimbursement, require corrective action, terminate this MOU, and/or require repayment of funds to the extent required by the County’s agreement with HCD or applicable law. The City shall be responsible for any disallowed costs attributable to the City’s failure to comply with this MOU or applicable REAP 2.0 requirements.

10. CONFLICT OF INTEREST
The City and its officers, employees, agents, consultants, and contractors performing work under this MOU shall comply with applicable Federal and State conflict-of-interest laws, regulations, and policies and any applicable County requirements incorporated into the grant program.

11. MUTUAL LIABILITY; INDEMNIFICATION
Each Party shall indemnify, defend, and hold harmless the other Party and its officers, officials, employees, and agents from claims, damages, losses, liabilities, costs, and expenses, including reasonable attorneys’ fees, to the extent arising from the indemnifying Party’s negligent acts or omissions, willful misconduct, or violation of law in connection with performance under this MOU, except to the extent caused by the negligence or willful misconduct of the indemnified Party. 253

12. INDEPENDENT PARTIES
The Parties are independent governmental entities. Nothing in this MOU shall be construed to create a partnership, joint venture, employment relationship, or agency relationship between the Parties. Neither Party may bind the other except as expressly provided in this MOU.

13. AMENDMENTS
This MOU may be amended only by a written instrument executed by authorized representatives of both Parties. Any amendment affecting the approved use, budget, term, or other material grant condition shall also be subject to any required HCD approval.

14. TERM
This MOU shall become effective upon execution by both Parties and shall remain in effect until the later of: (a) completion of the City’s eligible project expenditures and required reporting; or (b) completion of the County’s and City’s responsibilities necessary for HCD grant closeout, unless earlier terminated pursuant to this MOU. Any extension shall be in writing and, where required, approved by HCD.

15. TERMINATION FOR CONVENIENCE
Either Party may terminate this MOU upon not less than thirty (30) days written notice to the other Party. Upon termination, the City shall be reimbursed only for eligible costs properly incurred and documented through the effective date of termination, subject to HCD approval and availability of grant funds. This provision shall not relieve either Party of obligations that by their nature survive termination.

16. NOTICES
All notices required under this MOU shall be in writing and delivered by personal delivery, recognized overnight courier, or certified mail to the addresses designated by the Parties in their respective signature blocks, or to such other address as a Party may designate in writing.

17. SECTION HEADINGS
The headings of the sections are for convenience only and shall not affect the meaning, construction, or interpretation of this MOU.

18. SEVERABILITY
If any provision of this MOU is determined to be invalid, illegal, or unenforceable, that provision shall be severed or limited to the minimum extent necessary, and the remaining provisions shall remain in full force and effect.

19. REMEDIES NOT EXCLUSIVE
Except as otherwise limited by law, the remedies provided in this MOU are cumulative and are not exclusive of any other remedies available at law or in equity. 254

20. NO WAIVER OF DEFAULT
No delay or omission by either Party to exercise a right or remedy arising from a default shall constitute a waiver of that or any subsequent default.

21. CALIFORNIA LAW; VENUE
This MOU shall be governed by and construed in accordance with the laws of the State of California. Any litigation concerning this MOU shall be brought in a court of competent jurisdiction in Colusa County, California, unless applicable law requires otherwise.

22. COUNTERPARTS; ELECTRONIC SIGNATURES
This MOU may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. Signatures transmitted electronically or by approved electronic-signature technology shall be deemed effective to the extent permitted by applicable law.

23. AUTHORITY
Each signatory represents and warrants that he or she has the authority to execute this MOU on behalf of the Party identified below and that all necessary governmental approvals have been obtained.

24. SURVIVAL
All provisions that by their nature are intended to survive expiration or termination of this MOU, including record retention, audit, repayment, indemnification, and applicable compliance obligations, shall survive.

SIGNATURES
IN WITNESS WHEREOF, the Parties have executed this Memorandum of Understanding as of the dates set forth below.

COUNTY OF COLUSA CITY OF WILLIAMS
By: ______________________________
Name: _Joshua Pack ________________
Title: __County Administrative Officer __
By: ______________________________
Name: Yvonne Kimball ___________
Title: _City Manager ________________
Date: _____________________________ Date: _____________________________ City of Williams • REAP 2.0 / E Street Corridor Improvements Memorandum of Understanding 255
City of Williams DATE: September 16, 2026
City Council ITEM: 16.

Agenda Report CATEGORY: New Business
SUBJECT: Acceptance of $250,000 California Office of Emergency Services (Cal OES) Grant Award and Authorization of $357,143 Project Budget

BACKGROUND
The City of Williams was notified by Cal OES that its application under the Federal Fiscal Year 2024 State and Local Cybersecurity Grant Program – Local and Tribal Governments Program has been approved for a $250,000 award, the maximum amount available. The award letter is included as an attachment. Expenditures must be incurred from 7/1/2026 through 8/31/2028.

This grant required a 30% local match of the total project cost. This equates to a total project budget of $357,143 ($250,000 grant plus $107,143 match).This funding is to strengthen cybersecurity capabilities and address vulnerabilities within local government infrastructure. The City intends to use the grant funding to focus on critical water and sewer systems and address needed cybersecurity and security infrastructure improvements that will enhance the City's ability to protect utility systems, data, operations, and critical services.

DISCSUSSION
Although the grant requires a local financial match, the proposed expenditures are necessary security infrastructure improvements that the City would otherwise need to address through its existing resources.

City staff along with PACE Engineering are currently developing a project scope. A priority list includes radio communications connecting (water distribution) wells, relocation and modernization of water system automation control, automation and synchronization of sewer lift stations. Potential improvements may involve technology, systems, equipment, network security, access controls, cybersecurity protection, and other eligible security infrastructure. Although the specific projects have not yet been finalized, staff recommends that the Council authorize the overall project budget as soon as possible. The final funding allocations will be based on project allocations between the Water and Sewer Enterprise Funds.

FISCAL IMPACT
Acceptance of the grant will provide the City with $250,000 in external grant funding for eligible cybersecurity improvements. The required City match of $107,143 results in a total authorized project budget of $357,143. The City's matching funds will be allocated to the appropriate City funds based upon the final projects selected and the portion of the improvements benefiting General Fund and enterprise operations.
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ALTERNATIVE(S)
Council may consider to not authorize use of matching funds and not take advantage of Cal OES Cybersecurity grant award.

RECOMMENDED ACTION
Staff recommends City Council:
• Accept the $250,000 Cybersecurity Grant Award from Cal OES • Approve a total project budget of $357,143 including $107,143 in required City matching funds • Authorize staff to determine project funding allocations between the Water and Sewer Enterprise Funds.

RECOMMENDATION
Prepared and Submitted by: Rex Greenbaum, Finance Director Reviewed by: Yvonne Kimball, City Manager
Attachment(s):
• Cal OES Cybersecurity Grant Award Notification
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DELIVERED VIA E-MAIL: [email protected]
August 4, 2026
Yvonne Kimball
City Manager
City Of Williams
810 E Street
Williams, CA 95987
SUBJECT: NOTIFICATION OF SUBRECIPIENT ALLOCATION
Federal Fiscal Year (FFY) 2024 State and Local Cybersecurity Grant Program (SLCGP) – Local and Tribal Governments (SL) Program Subaward #2024-0090, Cal OES ID#TBD
Subaward Performance Period: 7/1/2026 to 8/31/2028
Dear Yvonne Kimball:

We are pleased to announce the approval of your FFY 2024 STATE & LOCAL CYBERSECURITY GRANT - LOCAL & TRIBAL (SL) PROGRAM proposal. Provided there are no successful appeals, and pending completion and/or revision of all required application forms, your agency will be awarded the amount of $250,000.

Once the completed application is received and approved, reimbursement of eligible subaward expenditures may be requested using the California Governor’s Office of Emergency Services (Cal OES) Financial Management Forms Workbook.

Supporting documentation and/or additional information may be required as part of the reimbursement process.

This subaward is subject to requirements in 2 CFR, Part 200, including the Notice of Funding Opportunity (NOFO), the Preparedness Grants Manual, the California Supplement to the NOFO, FY 2025 Standard Assurances, reporting requirements, and all applicable federal, state, and local requirements. All activities funded with this subaward must be completed within the subaward performance period. 258
Yvonne Kimball
August 4, 2026

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Williams City CouncilSeptember 10, 2026

Williams City Council
September 10, 2026