Corey Middleton, Mayor
Paul McCoy, Mayor Pro tempore
Colleen Baker, Councilmember
Drake Davis, Councilmember
Duane Kegg, Councilmember
Jason Ledbetter, City Manager
Rhetta Hogan, Asst. City Manager
Emily Aldrich, Finance Director
Matthew Bray, Public Works Director
John Elsnab, Human Resources Director
Mark Gilman, Police Chief
Andrew Jared, City Attorney
Jerry Lemos, Fire Chief
Juliana Lucchesi, Community Dev. Director
Cyndy Prohaska, City Clerk
YREKA CITY COUNCIL MEETING AGENDA
April 16, 2024
Closed Session: 5:30 PM
Regular Session: 6:30 PM
Yreka City Council Chamber, 701 Fourth Street, Yreka, CA Phone 530-841-2386, Facsimile 530-842-4836, email: [email protected] Regular Meetings of the Yreka City Council are held the 1st and 3rd Tuesday of every month.
The full agenda packet can be found on the City’s website at www.ci.yreka.ca.us/AgendaCenter. Copies of all staff reports and documents subject to disclosure that relate to any item of business referred to on the agenda are available for public inspection 72 hours before each regularly scheduled meeting at the City Clerk’s office at City Hall, located at 701 4th St, Yreka, California during normal business hours. Any writing that is subject to disclosure that relates to an agenda item for open session distributed less than 72 hours prior to the meeting will be available for public inspection at the City Clerk’s office during normal business hours.
Materials distributed to a majority of councilmembers less than 72 hours before a meeting will be available for public inspection on the City’s website at www.ci.yreka.ca.us/AgendaCenter.
Please note the following change to the City’s public comment procedures: Unless a Councilmember is participating in the meeting remotely pursuant to AB 2449, remote public comment will not be accepted.
Public comment may be provided in-person or via email, as set forth below. Members of the public desiring to provide comments as a part of the meeting are encouraged to either submit written comments by 3:00 p.m. to the City Clerk prior to the meeting or to attend the meeting in person." Written comments will be distributed to the Councilmembers but will not be read aloud at the meeting.
1. 5:30PM CALL TO ORDER:
2. PUBLIC COMMENT ON CLOSED SESSION:
3. CLOSED SESSION:
The City Council will recess to Closed Session to discuss the below item(s). At the conclusion of the Closed Session, Open Session will reconvene and reportable action, if any, will be announced. a. Conference with real property negotiator (Govt C §54956.8) - Property: APN 062-031-190-000
- Agency negotiator: Jason Ledbetter
- Negotiating parties: Darrel Collins
- Under negotiation: Price and Terms
This meeting is being livestreamed and can be viewed on Siskiyou Media Council’s YouTube Channel https://www.youtube.com/channel/UCzx2GSYFCrgE5przvnzitXQ Yreka City Council Agenda
April 16, 2024
4. 6:30PM CALL TO ORDER REGULAR SESSION AND PLEDGE OF ALLEGIANCE:
5. SPECIAL PRESENTATIONS AND/OR ANNOUNCEMENTS:
This time slot is for informational presentations, appointments, or awards to be presented by the City Council or to the City Council.
6. PUBLIC COMMENTS:
Public participation is welcomed and invited at all City Council meetings. This time is set aside for residents to address the City Council on matters listed on the Consent Agenda as well as other items not included on the Regular Agenda. If your comments concern an item noted on the Regular Agenda, please address the Council when that item is open for public comment.
The City requests that persons addressing the City Council refrain from making personal, slanderous, profane, or disruptive remarks.
Councilmembers, when recognized by the Mayor, may ask clarifying questions of presenter but no action may be taken by the City Council during the public comment section of the meeting. Under the Brown Act, the City Council is prohibited from discussing or taking action on any item not listed on the posted agenda.
This time is set aside for residents to address the City Council on matters listed on the Consent Agenda as well as other items not included on the Agenda. If your comments concern an item listed under the Public Hearing or New Business sections of the Agenda, please address the Council when that item is open for public comment.
• Please speak into the microphone from the podium. The podium electronically adjusts up and down to accommodate speaker.
• Please state your name for the record prior to providing your comments. • Please address the Council as a whole.
• If you have documents to present, please provide a minimum of seven (7) copies. These become a public record.
• Please limit your remarks to five (5) minutes.
• Since Council is unable to take action on issues not on the agenda, your matter may be referred to staff for follow up or be placed on a future agenda.
The public comment period is not intended to be a “Question and Answer” period or conversations with the Council or City staff.
7. CONSENT AGENDA:
All matters listed under the consent agenda are considered routine and non-controversial and will be enacted by one motion unless any member of the Council wishes to remove an item for discussion, a. Approval/ratification of payments issued from March 25, 2024, to April 7, 2024. b. Cash Balances, Budget to Actual and Fiscal Performance Reports for February 2024. c. Approval of Minutes of the Regular Meeting held April 2, 2024. d. Approval of Minutes of the Special Meeting held April 10, 2024. e. Approval of Resolution 2024-16 of the City Council of the City of Yreka Approving Downtown Miner Street Closures for the Special Event Known as “Yreka Farmer’s Market”. f. Approval of Resolution 2024-17 of the City Council of the City of Yreka Approving Salary Schedule Amendments for the Wastewater Manager and Water Manager Classifications.
Yreka City Council Agenda
April 16, 2024
g. Acceptance of the City of Yreka’s Audited Financial Statements for Fiscal Year 2022-23. h. Adoption of Resolution 2024-18 of the City Council of the City of Yreka Authorizing an Application for Funding and the Execution of a Grant Agreement and any Amendments Thereto for the 2025 Community Project Funding Grant Through Congressman LaMalfa’s Office.
Recommended City Council Action: Motion to Adopt the Consent Agenda of the City Council of the City of Yreka as presented.
8. OLD BUSINESS:
City Manager/City Attorney
a. Agenda Title: Ballot Measure Draft Language Development Draft ballot measure language is being presented, with the intent to receive feedback and direction on ballot measure language for introduction at a future City Council meeting.
Recommended City Council Action: Discussion and direction to City staff regarding the proposed draft ballot measure language.
9. PUBLIC HEARINGS: (None)
Public Hearing Protocol:
i. Mayor will describe the purpose of the Public Hearing. ii. City Staff will provide the Staff Report.
iii. City Staff will respond to questions from the City Council. iv. Mayor will open the Public Hearing.
v. Public wanting to comment will come to the podium, provide the City Clerk with their name and address, and provide their comments.
vi. Mayor will close the Public Hearing.
vii. City Council will deliberate and act on the item.
10. NEW BUSINESS:
City Manager/ Siskiyou Food Bank
a. Agenda Title: Citizen of the Year Banquet
On February 6, 2024, The City of Yreka City Council voted 5/0 in favor of partnering with a local non-profit to bring back the Yreka Citizen of the Year Event. City of Yreka staff placed a post on the City of Yreka Facebook page asking non-profits to inquire with the City of Yreka if they had interest in organizing the Yreka Citizen of the Year Event. City staff received one letter of interest from the Siskiyou Community Food Bank.
Recommended City Council Action: A motion to approve the formation of the Yreka Citizen of the Year Committee, consisting of 2 Yreka City Council Members, the Siskiyou County District 4 Supervisor, and 2 representatives of the Siskiyou Community Food Bank.
11. CITY MANAGER/STAFF REPORTS:
City Manager and Staff may make brief announcements or reports at this time.
12. MAYOR/COUNCILMEMBERS REPORTS, STATEMENTS AND REQUESTS:
AB 1234* Conference and Meeting Report (verbal, if any) *(In accordance with AB 1234, Councilmembers shall make a brief report or file a written report on any meeting/event/conference attended at City expense.) Yreka City Council Agenda
April 16, 2024
Members of the Council may make brief announcements, reports, or request staff to report to the Council on any matter at a subsequent meeting.
13. ADJOURNMENT:
In compliance with the requirements of the Brown Act, notice of this meeting has been posted in a publicly accessible place, 72 hours in advance of the meeting.
Public Hearings: If you wish to challenge in court any of the matters on an agenda for which a public hearing is to be conducted, you may be limited to raising only those issues which you (or someone else) raised orally at the public hearing or in written correspondence received by the City at or before the hearing. Any person seeking to challenge a City Council decision made as a result of a proceeding in which by law a hearing is required to be given, evidence is required to be taken, and the discretion in the determination of facts is vested in the City Council, shall be required to commence that action 90 days following the date on which the decision becomes final as provided in Code of Civil Procedure Section 1094.6. Please refer to Code of Civil Procedure 1094.6 to determine how to calculate when a decision becomes “final.”
"CHALLENGING DECISIONS OF CITY ENTITIES The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City of Yreka is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision, including without limitation Government Code section 65009 applicable to many land use and zoning decisions, Government Code section 66499.37 applicable to the Subdivision Map Act, and Public Resources Code section 21167 applicable to the California Environmental Quality Act (CEQA). Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. Government Code section 65009 and 66499.37, and Public Resources Code section 21167, impose shorter limitations periods and requirements, including timely service in addition to filing. If a person wishes to challenge the above actions in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Yreka, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies." The City of Yreka does not discriminate on the basis of race, color, national origin, religion, age, gender, sexual orientation, disability, or any other legally protected classes in employment or provision of services. In compliance with the Americans with Disabilities Act, those requiring accommodations for this meeting should notify the City Clerk 48 hours prior to the meeting at (530) 841-2386 or by notifying the Clerk at [email protected].
AFFIDAVIT OF NOTIFICATION AND POSTING
STATE OF CALIFORNIA)
COUNTY OF SISKIYOU) SS
CITY OF YREKA )
I, Cyndy Prohaska, City Clerk for the City of Yreka, hereby declare under penalty of perjury that a copy of the above Agenda of the Regular Meeting of the City Council of the City of Yreka, California, was delivered and/or notice by email not less than 72 hours, before the hour of 5:30PM on April 16, 2024 to the members of the governing agency, and caused the agenda to be posted on the City’s website at www.ci.yreka.ca.us and posted at Yreka City Hall, 701 Fourth St., Yreka, California. /s/: Cyndy Prohaska
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Fund Type Fund Fund Description Previous Balance
Receipts /
Debits
Disbursements /
Credits
Cash Balance by
Fund
General-Unrestricted 01 General Operating $ 8,522,684.40 $ 794,907.73 $ 613,481.22 $ 8,704,110.91 General-Designated 01 General Oper. - Other - - - 0.00
General-Designated 01 Comm Art - - - 0.00
General-Designated 01 Fire Museum 3,322.35 - - 3,322.35 General-Designated 01 Planning Deposits - - - 0.00
General-Designated 01 Sidewalk in Lieu 39,278.46 - - 39,278.46 General-Designated 01 Parkland Trust 300.00 - - 300.00
General-Designated 01 Police Asset Forfeit 17,089.86 - - 17,089.86 General-Designated 01 Parking Fees - - - 0.00
General-Designated 01 Campbell Tract Redemption - - - 0.00 General-Designated 02 Gifts Donations 24,788.45 - 108.00 24,680.45 General-Designated 02 K-9 Unit - - - 0.00
General-Designated 02 YPD Donated - Hitson 6,145.69 - - 6,145.69 General-Designated 02 YPD Donated - Travellers 741.68 - - 741.68 General-Designated 02 YPD Donated - Teen Fund 3,956.43 - - 3,956.43 General-Restricted 04 Crandell Cash 427,359.24 - - 427,359.24 General-Restricted 05 Property Abatement Recovery (129,640.93) 4,883.80 (124,757.13) - General-Designated 08 Grant Projects Reserve 1,448,318.22 - 1,448,318.22 - General-Designated 08 PERS Pension Liability Reserve - - - 0.00 General-Designated 09 Reserves for Cap. Outlay 584,843.16 - - 584,843.16 General-Designated 10 Capital Outlay (338,508.38) - 973.54 (339,481.92) General-Designated 11 Capital Building Project - YPD (66,106.97) 27,365.18 279.73 (39,021.52) General - All General-Designated 12 Debt Servicing - GF (YPD Bldg) 409,605.48 - - 409,605.48 General-Designated 12 Debt Servicing Reserves - GF (YPD Bldg) 200,000.00 - - 200,000.00 General-Designated 90 Payroll Clearing (575,452.61) 746,952.49 620,084.00 (448,584.12) 10,917,907.24 $ Spec. Rev. -Streets 20 Road and Street Funds including HUTA 961,199.88 37,024.93 35,498.47 962,726.34 Spec. Rev. -Streets 21 Local Transportation 775,905.35 - - 775,905.35 Streets Spec. Rev. -Streets 24 Fines - Traffic Safety 237,433.31 1,425.79 6,755.07 232,104.03 1,970,735.72 $ Special Revenue 30 Fire Assessment Spec. Rev 1,132,886.30 31,259.28 7,761.22 1,156,384.36 Special Revenue 31 Landfill Access Fee - Debt Service 26,509.51 20,532.99 2,759.32 44,283.18 Special Revenues Special Revenue 32 Developer Impact Fees 259,622.34 - - 259,622.34 $ 1,460,289.88 Solid Waste 51 Solid Waste Capital Projects - 194,700.85 - (194,700.85) Solid Waste Special Grants 60 Spec Grants Capital Outlay 2,604,550.26 22,988.79 21,652.10 2,605,886.95 Special Grants Special Grants 65 Community Development Grants 925,294.08 617.19 1,220.80 924,690.47 SpecialOperating 67 SUMIT Operating 462,438.56 - - 462,438.56 $ 3,993,015.98 Water Enterprise 70 Water Operating (943,649.41) 238,613.72 276,396.52 (981,432.21) Water Enterprise 71 Water Capital Projects 3,191,885.41 757,710.48 - 2,434,174.93 Water Enterprise 72 Water Debt Servicing 869,290.56 - 7,187.66 862,102.90 Water Enterprise 72 USDA COPS 2010 300,000.00 - - 300,000.00 Water Enterprise Water Enterprise 74 Water Reserves 2,867,507.57 46,289.68 2,913,797.25 - $ 5,528,642.87 Sewer Enterprise 80 Sewer Operating (734,802.31) 263,748.52 257,802.51 (728,856.30) Sewer Enterprise 81 Sewer Capital Outlay (954,344.81) 446,869.33 - (1,401,214.14) Sewer Enterprise 82 Sewer Debt Servicing (57,854.08) - - (57,854.08) Sewer Enterprise 82 USDA COPS 2003 250,000.00 - - 250,000.00 Enterprise-Sewer Sewer Enterprise 84 Sewer Reserves 4,144,639.98 63,695.22 4,208,335.20 - $ 2,270,410.68 Agency
Agency 92 Agency SUMIT - Cash 3,717.17 - - 3,717.17 $ 3,717.17 COLUMN TOTALS $ 26,900,954.20 $ 2,300,305.31 $ 3,251,240.82 $ 25,950,018.69 $ 26,144,719.54 -
BANK RECAPITULATION PER BANK Market Value Unrealized Gain PER LEDGER L.A.I.F. 0.861% 20,849,870.89 20,581,437.43 (268,433.46) Pershing Bank - CD & Treas Investments 3,187,000.00 3,168,253.16 (18,746.84) Pershing Bank - Cash 19,737.94
Petty Cash Drawers 1,200.00
YVFD Petty Cash -
Banner Bank (DDA for Bank Anticipation Note -
MB SUMIT Operating x2233 464,988.65
MB SUMIT Asset Forfeiture X4281 3,707.34
Mechanics Bank - ZBA x6830 -
Mechanics Bank - MM x6505 503,578.83
Mechanics Bank - 01015102 996,301.93
TOTAL PER BANK 26,026,385.58
ADJUSTMENTS
Less Outstanding Checks MB (67,079.83)
Less Outstanding Checks SVB SUMIT (2,550.09)
Interest CR (GL ) February 2024 (11.29)
Transfer 2/29 - Posted 3/1 at Bank 20,601.92
Credit Card charge for SUMIT (2,865.68)
TASC 1.44
Health (0.02)
FCM Deposit (6,468.09)
Unreconciled Diff 4,108.39
Taxes Receivable 1,212.96
Mechanics Money Market (1,903.81)
Mechanics Money Market (1,674.85)
MBSC Interest - Jan (10,249.47)
MBSC Interest - Feb (9,488.47)
TOTAL PER LEDGER 25,950,018.69 25,950,018.69
(0.00)
Corey Middleton, City Mayor
Emily Aldrich, Finance Director
CITY OF YREKA
REPORT ON CASH TO THE CITY COUNCIL
2/29/2023
Yreka City Council Agenda
April 16, 2024
2023-2024 Operating Budget of Revenue and Expenditures
with Year to Date Actual Results January 31, 2024
Fund AnalysisMajor Grp Fund 2 Adopted Operating Budget Year to Date 3 Adopted Operating Budget Year to Date 4 Operating Budget Net Actual
Year to Date
Current Cash
Balance
Investment in LAIF 00 - - - - - - -
General Operating 01 10,026,053.00 10,026,053.00 5,960,233.43 9,969,884.10 9,959,884.10 6,903,781.32 (943,547.89) 66,168.90 8,764,101.58 General Operating Fund 10,026,053.00 10,026,053.00 5,960,233.43 9,969,884.10 9,959,884.10 6,903,781.32 66,168.90 (943,547.89) 8,764,101.58 Gifts Donations 02 - - 664.11 1,500.00 1,500.00 3,578.18 (2,914.07) (1,500.00) 35,524.25 Trusts -Crandell-Stewart 04 - - 7,761.85 2,200.00 2,200.00 2,236.58 5,525.27 (2,200.00) 427,359.24 Property Abatement 05 - - 2,576.45 - 10,000.00 158,692.37 (156,115.92) (10,000.00) (124,757.13) General Fund Reserves 08 - - 6,030.42 - - 12,724.00 (6,693.58) - 1,448,318.22 Reserves for Cap. Outlay 09 180,000.00 180,000.00 180,545.27 513,535.00 513,535.00 513,535.00 (333,535.00) (332,989.73) 584,843.16 Capital Outlay 10 20,000.00 20,000.00 (180,000.00) 95,000.00 95,000.00 161,684.86 (75,000.00) (341,684.86) (339,481.92) Construction Fund 11 - - 30,637.55 - - 52,942.17 - (22,304.62) (39,021.52)General Fund Debt Servicing 12 126,670.00 126,670.00 126,670.00 126,670.00 126,670.00 22,111.25 104,558.75 - 609,605.48Payroll Clearing 90 - - - - - 84,990.28 - (84,990.28) (448,584.12) General Fund - Restricted or Designated 326,670.00 326,670.00 174,885.65 738,905.00 748,905.00 1,012,494.69 (422,235.00) (837,609.04) 2,153,805.66 Total General Fund 10,352,723.00 10,352,723.00 6,135,119.08 10,708,789.10 10,708,789.10 7,916,276.01 (356,066.10) (1,781,156.93) 10,917,907.24 Gas Tax & Traffic Cong. 20 1,167,948.01 1,167,948.01 1,039,903.36 1,167,948.01 1,167,948.01 480,637.69 559,265.67 - 962,726.34 Local Transportation 21 200,000.00 200,000.00 (45,955.47) 200,000.00 200,000.00 - - (45,955.47) 775,905.35Fines - Traffic Safety 24 74,480.66 74,480.66 70,760.48 74,480.66 74,480.66 41,054.59 - 29,705.89 232,104.03 Road, Street & Transit - Restricted 1,442,428.67 1,442,428.67 1,064,708.37 1,442,428.67 1,442,428.67 521,692.28 543,016.09 - 1,970,735.72 Total Road, Streets and Transit 1,442,428.67 1,442,428.67 1,064,708.37 1,442,428.67 1,442,428.67 521,692.28 543,016.09 - 1,970,735.72 Fire Assessment Spec. Rev 30 348,000.00 348,000.00 254,173.99 205,726.24 205,726.24 326,608.36 142,273.76 (72,434.37) 1,156,384.36 Landfill Access Fee - Debt Service 31 240,000.00 240,000.00 160,781.30 240,000.00 240,000.00 193,814.90 - (33,033.60) 44,283.18 Developer Impact Fees 32 26,000.00 26,000.00 20,584.78 9,500.00 9,500.00 - 16,500.00 20,584.78 259,622.34Special Revenue - Restricted 614,000.00 614,000.00 435,540.07 455,226.24 455,226.24 520,423.26 158,773.76 (84,883.19) 1,460,289.88 Total Special Revenue 614,000.00 614,000.00 435,540.07 455,226.24 455,226.24 520,423.26 158,773.76 (84,883.19) 1,460,289.88 Spec Grants Capital Outlay 60 4,096,535.00 4,096,535.00 1,184,381.38 4,489,650.00 4,489,650.00 439,881.43 (393,115.00) 744,499.95 2,605,886.95Community Development Grants 65 1,063,662.00 1,063,662.00 333,152.48 1,515,000.00 1,515,000.00 53,317.34 (451,338.00) 279,835.14 924,690.47 SUMIT Operating Fund 67 - - 4.96 218,000.00 218,000.00 5,311.73 (218,000.00) (5,306.77) 462,438.56Special Grants - Capital Projects 5,160,197.00 5,160,197.00 1,517,538.82 6,222,650.00 6,222,650.00 498,510.50 (1,062,453.00) 1,019,028.32 3,993,015.98Special Grants - Operating & Capital Projects 5,160,197.00 5,160,197.00 1,517,538.82 6,222,650.00 6,222,650.00 498,510.50 (1,062,453.00) 1,019,028.32 3,993,015.98 Solid Waste Capital Projects 51 - - - - - 194,700.85 (194,700.85) - (194,700.85) Solid Waste - - - - - 194,700.85 - (194,700.85) (194,700.85) Solid Waste - - - - 194,700.8 - 5 - (194,700.85) (194,700.85) Water Operating 70 3,700,811.98 3,700,811.98 1,341,039.00 3,700,811.98 3,700,811.98 2,035,465.21 (694,426.21) - (981,432.21) Water Capital Projects 71 3,565,779.00 3,565,779.00 2,475,428.72 3,419,968.00 3,419,968.00 1,300,349.76 1,175,078.96 145,811.00 2,434,174.93 Water Debt Servicing 72 356,576.92 356,576.92 349,076.92 349,076.92 349,076.92 1,967.79 347,109.13 7,500.00 1,162,102.90 Water Reserves 74 (2,030,615.18) (2,030,615.18) (1,565,327.23) - - - (1,565,327.23) (2,030,615.18) 2,913,797.25 Water Enterprise 5,592,552.72 5,592,552.72 2,600,217.41 7,469,856.90 7,469,856.90 3,337,782.76 (1,877,304.18) (737,565.35) 5,528,642.87 Sewer Operating 80 3,160,288.95 3,160,288.95 1,094,860.63 3,160,288.95 3,160,288.95 1,534,724.10 (439,863.47) - (728,856.30) Sewer Capital Outlay 81 8,210,203.00 8,210,203.00 543,981.99 8,210,203.00 8,210,203.00 3,194,097.14 (2,650,115.15) - (1,401,214.14) Sewer Debt Servicing 82 449,538.50 449,538.50 447,538.50 444,407.50 444,407.50 294,387.50 153,151.00 5,131.00 192,145.92 Sewer Reserves 84 (1,073,712.98) (1,073,712.98) (746,767.79) - - - (1,073,712.98) (746,767.79) 4,208,335.20 Sewer Enterprise Fund 10,746,317.47 10,746,317.47 1,339,613.33 11,814,899.45 11,814,899.45 5,023,208.74 (1,068,581.98) (3,683,595.41) 2,270,410.68Total Enterprise Funds 16,338,870.19 16,338,870.19 3,939,830.74 19,284,756.35 19,284,756.35 8,360,991.50 (2,945,886.16) (4,421,160.76) 7,799,053.55 SUMIT Agency Trust - Cash 92 - - - - - - - - 3,717.17Agency Funds - - - - - - - - 3,717.17 \ Total Agency Funds - - - - - - - - 3,717.17
All Funds Combined 33,908,218.86 33,908,218.86 13,092,737.08 38,113,850.36 38,113,850.36 17,817,893.55 (4,205,631.50) (4,725,156.47) 25,950,018.69 Excess of Rev over Exp.-Surplus/
R E V E N U E E X P E N S E (Deficit)
Approval:______________________________________________________Corey Middleton, Mayor Yreka City Council Agenda
4/9/2024 8:24 AM
April 16, 2024
City of Yreka Financial Statement Groupings
Summary FY 23-24 YTD Fiscal Performance
as of February 29, 2024
ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
1. GENERAL FUNDSRevenue
801 REVENUE: PROP TAXES 1,383,425.00 1,383,425.00 846,482.50 -536,942.50807 MVLF IN LIEU 740,000.00 397,018.78 -342,981.22 740,000.00810 SALES TAX 4,363,000.00 2,232,006.76 -2,130,993.24 4,363,000.00813 REVENUE: TOT TAXES 1,200,000.00 621,464.72 -578,535.28 1,200,000.00814 REVENUE: FRANCHISE FEES 300,000.00 263,915.10 -36,084.90 300,000.00815 REVENUE - LICENSES AND PERMITS 260,700.00 166,848.71 -93,851.29 260,700.00825 REVENUE - FINES & FORFEITURES 250.00 2,366.01 2,116.01 250.00830 REVENUE - USE OF MONEY & PROPERTY 160,800.00 448,905.23 288,105.23 160,800.00850 REVENUE - INTERGOVERNMENTAL 1,099,616.50 612,704.72 -486,911.78 1,099,616.50870 REVENUE - USER FEES AND CHARGES 65,150.00 81,616.15 16,466.15 65,150.00880 ICA ALLOCATION 573,781.50 384,000.00 -189,781.50 573,781.50882 REVENUE - OTHER 6,000.00 77,790.40 71,790.40 6,000.00883 GAIN (LOSS) ON SALE OF ASSETS 200,000.00 0.00 -200,000.00 200,000.00898 INTERFUND TRANSFERS 0.00 0.00 0.00 0.00
1. GENERAL FUNDS Revenue Totals 10,352,723.00 10,352,723.00 6,135,119.08 -4,217,603.92Expense 100 MAYOR, COUNCIL, CITY MANAGER, CLERK 646,797.14 661,797.14 331,441.40 330,355.74110 EXP. GENERAL GOVERNMENT 998,187.34 1,089,740.33 -106,552.99 983,187.34130 PUBLIC SAFETY CODE ENFORCEMENT 171,805.57 228,832.83 -57,027.26 171,805.57 Tuesday, April 9, 2024 Page 1 of 9
Yreka City Council Agenda April 16, 2024
ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
200 PUBLIC SAFETY - POLICE 4,458,899.93 4,458,899.93 2,771,694.75 1,687,205.18210 PUBLIC SAFETY - FIRE 777,358.21 312,278.73 465,079.48 777,358.21215 PUBLIC SAFETY - HAZARD MITIGATION 0.00 6,265.62 -6,265.62 0.00220 PLANNING AND DEVELOPMENT 1,225,012.66 1,225,012.66 504,048.73 720,963.93300 PUBLIC WORKS - ENGINEERING AND ADMIN 108,270.72 50,220.65 58,050.07 108,270.72350 PUBLIC WORKS - MECHANICAL MAINT (ELIM) 0.00 474,430.47 -474,430.47 0.00370 PUBLIC WORKS - SERVICE CENTER (ELIM) 0.00 23,254.17 -23,254.17 0.00400 CULTURAL & REC - PARKS AND REC 512,161.86 240,303.81 271,858.05 512,161.86600 COMMUNITY DEVELOPMENT 0.00 57,238.00 -57,238.00 0.00645 CAPITAL OUTLAY 75,000.00 195,789.60 -120,789.60 75,000.00740 PRINCIPAL ON LT DEBT 37,000.00 0.00 37,000.00 37,000.00745 INTEREST ON LT DEBT 89,670.00 22,111.25 67,558.75 89,670.00760 INTERFUND TRANSFERS 1,608,625.67 1,608,625.67 0.00 1,608,625.67
1. GENERAL FUNDS Expense Totals 10,708,789.10 10,708,789.10 7,916,276.01 2,792,513.091. GENERAL FUNDS Net Position Change -356,066.10 -356,066.10 -1,781,156.93 -1,425,090.83 Tuesday, April 9, 2024 Page 2 of 9
Yreka City Council Agenda April 16, 2024
ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 1. GENERAL FUNDS (1120 detail records)2. STREETS FUNDSRevenue 825 REVENUE - FINES & FORFEITURES 15,000.00 15,000.00 9,705.57 -5,294.43830 REVENUE - USE OF MONEY & PROPERTY 6,500.00 37,763.50 31,263.50 6,500.00850 REVENUE - INTERGOVERNMENTAL 627,900.00 235,210.63 -392,689.37 627,900.00887 REVENUE: INKIND 11,000.00 0.00 -11,000.00 11,000.00898 INTERFUND TRANSFERS 782,028.67 782,028.67 0.00 782,028.67
2. STREETS FUNDS Revenue Totals 1,442,428.67 1,442,428.67 1,064,708.37 -377,720.30Expense 300 PUBLIC WORKS - ENGINEERING AND ADMIN 84,844.99 84,844.99 36,189.53 48,655.46310 PUBLIC WORKS - STREET MAINTENANCE 613,255.50 331,364.82 281,890.68 613,255.50311 PUBLIC WORKS - STREET SWEEPING 106,813.12 37,635.79 69,177.33 106,813.12312 PUBLIC WORKS - STREET LIGHTING 81,024.54 23,031.95 57,992.59 81,024.54313 PUBLIC WORKS - WEED CONTROL STREETS 7,543.04 510.00 7,033.04 7,543.04314 PUBLIC WORKS - PUBLIC PARKING LOTS 1,959.91 469.37 1,490.54 1,959.91320 PUBLIC WORKS - TRAFFIC SAFETY 74,480.66 74,480.66 41,054.59 33,426.07340 TRANSPORTATION 200,000.00 0.00 200,000.00 200,000.00390 PUBLIC WORKS - STORM DRAINS 182,506.91 51,436.23 131,070.68 182,506.91645 CAPITAL OUTLAY 90,000.00 0.00 90,000.00 90,000.00
2. STREETS FUNDS Expense Totals 1,442,428.67 1,442,428.67 521,692.28 920,736.392. STREETS FUNDS Net Position Change 0.00 0.00 543,016.09 543,016.09 Tuesday, April 9, 2024 Page 3 of 9
Yreka City Council Agenda April 16, 2024
ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 2. STREETS FUNDS (299 detail records)3. SPECIAL REVENUE FUNDSRevenue 811 OTHER TAXES 330,000.00 330,000.00 230,272.84 -99,727.16815 REVENUE - LICENSES AND PERMITS 26,000.00 15,978.61 -10,021.39 26,000.00830 REVENUE - USE OF MONEY & PROPERTY 18,000.00 28,507.32 10,507.32 18,000.00870 REVENUE - USER FEES AND CHARGES 240,000.00 160,781.30 -79,218.70 240,000.00
3. SPECIAL REVENUE FUNDS Revenue Totals 614,000.00 614,000.00 435,540.07 -178,459.93Expense 100.3 COLLECTION EXPENSE 65,000.00 65,000.00 18,814.90 46,185.10 210 PUBLIC SAFETY - FIRE 15,000.00 46,273.86 -31,273.86 15,000.00645 CAPITAL OUTLAY 100,000.00 219,850.34 -119,850.34 100,000.00740 PRINCIPAL ON LT DEBT 196,586.16 167,277.14 29,309.02 196,586.16745 INTEREST ON LT DEBT 69,140.08 68,207.02 933.06 69,140.08760 INTERFUND TRANSFERS 9,500.00 0.00 9,500.00 9,500.00
3. SPECIAL REVENUE FUNDS Expense Totals 455,226.24 455,226.24 520,423.26 -65,197.023. SPECIAL REVENUE FUNDS Net Position Change 158,773.76 158,773.76 -84,883.19 -243,656.95 Tuesday, April 9, 2024 Page 4 of 9
Yreka City Council Agenda April 16, 2024
ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 3. SPECIAL REVENUE FUNDS (43 detail records)4. CAPITAL & CDBG GRANTSRevenue 830 REVENUE - USE OF MONEY & PROPERTY 600.00 600.00 17,880.48 17,280.48850 REVENUE - INTERGOVERNMENTAL 3,133,000.00 573,061.34 -2,559,938.66 3,133,000.00882 REVENUE - OTHER 100,000.00 100,000.00 0.00 100,000.00898 INTERFUND TRANSFERS 1,926,597.00 826,597.00 -1,100,000.00 1,926,597.00
4. CAPITAL & CDBG GRANTS Revenue Totals 5,160,197.00 5,160,197.00 1,517,538.82 -3,642,658.18Expense 220 PLANNING AND DEVELOPMENT 0.00 0.00 20,702.50 -20,702.50600 COMMUNITY DEVELOPMENT 395,000.00 176,892.23 218,107.77 395,000.00645 CAPITAL OUTLAY 5,827,650.00 300,915.77 5,526,734.23 5,827,650.00
4. CAPITAL & CDBG GRANTS Expense Totals 6,222,650.00 6,222,650.00 498,510.50 5,724,139.504. CAPITAL & CDBG GRANTS Net Position Change -1,062,453.00 -1,062,453.00 1,019,028.32 2,081,481.32 Tuesday, April 9, 2024 Page 5 of 9
Yreka City Council Agenda April 16, 2024
ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 4. CAPITAL & CDBG GRANTS (182 detail records)5. WATER FUNDSRevenue 830 REVENUE - USE OF MONEY & PROPERTY 80,000.00 80,000.00 176,165.25 96,165.25850 REVENUE - INTERGOVERNMENTAL 2,650,000.00 260,616.79 -2,389,383.21 2,650,000.00870 REVENUE - USER FEES AND CHARGES 4,169,273.72 2,163,435.37 -2,005,838.35 4,169,273.72898 INTERFUND TRANSFERS -1,306,721.00 0.00 1,306,721.00 -1,306,721.00
5. WATER FUNDS Revenue Totals 5,592,552.72 5,592,552.72 2,600,217.41 -2,992,335.31Expense 100.3 COLLECTION EXPENSE 353,852.41 353,852.41 214,999.65 138,852.76300.1 ENGINEERING 399,218.30 136,777.93 262,440.37 399,218.30 500 WATER DISTRIBUTION EXPENSE 1,186,227.05 364,960.78 821,266.27 1,186,227.05510 WATER TREATMENT AND CONSERVATION 1,480,260.01 890,690.66 589,569.35 1,480,260.01 510.1 COST OF POWER AND WATER 297,670.00 220,398.06 77,271.94 297,670.00 645 CAPITAL OUTLAY 3,480,000.00 1,217,257.15 2,262,742.85 3,480,000.00690 CAPITALIZATION OF ASSETS -764,000.00 82,730.74 -846,730.74 -764,000.00740 PRINCIPAL ON LT DEBT 225,642.76 225,642.76 0.00 225,642.76745 INTEREST ON LT DEBT 123,434.16 1,967.79 121,466.37 123,434.16760 INTERFUND TRANSFERS 375,000.00 0.00 375,000.00 375,000.00799 ICA EXPENSE 312,552.21 208,000.00 104,552.21 312,552.21
5. WATER FUNDS Expense Totals 7,469,856.90 7,469,856.90 3,337,782.76 4,132,074.145. WATER FUNDS Net Position Change -1,877,304.18 -1,877,304.18 -737,565.35 1,139,738.83 Tuesday, April 9, 2024 Page 6 of 9
Yreka City Council Agenda April 16, 2024
ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 5. WATER FUNDS (389 detail records)6. SEWER FUNDSRevenue 830 REVENUE - USE OF MONEY & PROPERTY 95,000.00 95,000.00 131,581.84 36,581.84850 REVENUE - INTERGOVERNMENTAL 5,500,000.00 -852,000.01 -6,352,000.01 5,500,000.00870 REVENUE - USER FEES AND CHARGES 3,835,096.47 2,055,056.36 -1,780,040.11 3,835,096.47882 REVENUE - OTHER 0.00 4,975.14 4,975.14 0.00898 INTERFUND TRANSFERS 1,316,221.00 1,316,221.00 0.00 -1,316,221.00
6. SEWER FUNDS Revenue Totals 10,746,317.47 10,746,317.47 1,339,613.33 -9,406,704.14Expense 100.3 COLLECTION EXPENSE 372,518.41 372,518.41 209,067.70 163,450.71300.1 ENGINEERING 358,029.30 123,007.08 235,022.22 358,029.30510.1 COST OF POWER AND WATER 277,400.00 157,634.99 119,765.01 277,400.00 550 WASTEWATER COLLECTION EXPENSE 772,375.75 201,026.12 571,349.63 772,375.75560 WASTEWATER TREATMENT EXPENSE 1,128,736.20 667,988.21 460,747.99 1,128,736.20645 CAPITAL OUTLAY 7,825,203.00 3,172,196.14 4,653,006.86 7,825,203.00690 CAPITALIZATION OF ASSETS 0.00 0.00 21,901.00 -21,901.00740 PRINCIPAL ON LT DEBT 230,000.00 140,000.00 90,000.00 230,000.00745 INTEREST ON LT DEBT 214,407.50 154,387.50 60,020.00 214,407.50760 INTERFUND TRANSFERS 375,000.00 0.00 375,000.00 375,000.00799 ICA EXPENSE 261,229.29 176,000.00 85,229.29 261,229.29
6. SEWER FUNDS Expense Totals 11,814,899.45 11,814,899.45 5,023,208.74 6,791,690.716. SEWER FUNDS Net Position Change -1,068,581.98 -1,068,581.98 -3,683,595.41 -2,615,013.43 Tuesday, April 9, 2024 Page 7 of 9
Yreka City Council Agenda April 16, 2024
ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 6. SEWER FUNDS (263 detail records)7. LANDFILL FUNDSExpense 645 CAPITAL OUTLAY 0.00 0.00 194,700.85 -194,700.85
7. LANDFILL FUNDS Expense Totals 0.00 0.00 194,700.85 -194,700.857. LANDFILL FUNDS Net Position Change 0.00 0.00 -194,700.85 -194,700.85 Tuesday, April 9, 2024 Page 8 of 9
Yreka City Council Agenda April 16, 2024
ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 7. LANDFILL FUNDS (1 detail record) Grand Total 4,205,631.50 4,205,631.50 4,919,857.32 714,225.82 Tuesday, April 9, 2024 Page 9 of 9
Yreka City Council Agenda April 16, 2024
Corey Middleton, Mayor
Paul McCoy, Mayor Pro tempore
Colleen Baker, Councilmember
Drake Davis, Councilmember
Duane Kegg, Councilmember
Jason Ledbetter, City Manager
Rhetta Hogan, Asst. City Manager
Emily Aldrich, Finance Director
Matthew Bray, Public Works Director
John Elsnab, Human Resources Director
Mark Gilman, Police Chief
Andrew Jared, City Attorney
Jerry Lemos, Fire Chief
Juliana Lucchesi, Community Dev. Director
Cyndy Prohaska, City Clerk
YREKA CITY COUNCIL MEETING MINUTES
April 2, 2024
Closed Session: 5:30 PM
Regular Session: 6:30 PM
Yreka City Council Chamber, 701 Fourth Street, Yreka, CA Phone 530-841-2386, Facsimile 530-842-4836, email: [email protected] Regular Meetings of the Yreka City Council are held the 1st and 3rd Tuesday of every month.
The full agenda packet can be found on the City’s website at www.ci.yreka.ca.us/AgendaCenter.
Copies of all staff reports and documents subject to disclosure that relate to any item of business referred to on the agenda are available for public inspection 72 hours before each regularly scheduled meeting at the City Clerk’s office at City Hall, located at 701 4th St, Yreka, California during normal business hours. Any writing that is subject to disclosure that relates to an agenda item for open session distributed less than 72 hours prior to the meeting will be available for public inspection at the City Clerk’s office during normal business hours.
Materials distributed to a majority of councilmembers less than 72 hours before a meeting will be available for public inspection on the City’s website at www.ci.yreka.ca.us/AgendaCenter.
Please note the following change to the City’s public comment procedures: Unless a Councilmember is participating in the meeting remotely pursuant to AB 2449, remote public comment will not be accepted. Public comment may be provided in-person or via email, as set forth below. Members of the public desiring to provide comments as a part of the meeting are encouraged to either submit written comments by 3:00 p.m. to the City Clerk prior to the meeting or to attend the meeting in person." Written comments will be distributed to the Councilmembers but will not be read aloud at the meeting.
1. 5:30PM CALL TO ORDER:
The meeting was called to order at 5:31 pm.
2. PUBLIC COMMENT ON CLOSED SESSION:
No public comment was received.
3. CLOSED SESSION:
The City Council will recess to Closed Session to discuss the below item(s). At the conclusion of the Closed Session, Open Session will reconvene and reportable action, if any, will be announced.
This meeting is being livestreamed and can be viewed on Siskiyou Media Council’s YouTube Channel https://www.youtube.com/channel/UCzx2GSYFCrgE5przvnzitXQ Yreka City Council Agenda
April 16, 2024
a. Conference with legal counsel—anticipated litigation (City Initiating) (Govt C §54956.9(d)(4))
- Number of cases: 1
b. Conference with legal with counsel – pending litigation (Govt C §54956.9(d)(1)) - Miners LLC v. Miner’s Hospitality LLC, et al
- Siskiyou County Case Number 24CV00784
4. RETURN TO OPEN SESSION AT 6:30 PM:
Announcement of any action taken by the City Council in Closed Session required by the Ralph M.
Brown Act. (Government Code § 54950 et. seq.)
There was no reportable action.
5. 6:30PM CALL TO ORDER REGULAR SESSION AND PLEDGE OF ALLEGIANCE:
The meeting was called to order at 6:29 pm.
6. SPECIAL PRESENTATIONS AND/OR ANNOUNCEMENTS:
This time slot is for informational presentations, appointments, or awards to be presented by the City Council or to the City Council.
a. Yreka Fire Department – Appointment of Austin Winklehausen as a volunteer to the Yreka Fire Department by Fire Chief Jerry Lemos.
b. First5 Siskiyou – Child Abuse Prevention Council Collaborative Proclamation - Steve Bryan c. Siskiyou County Local Transportation Commission – Melissa Cummins
7. PUBLIC COMMENTS:
Public participation is welcomed and invited at all City Council meetings. This time is set aside for residents to address the City Council on matters listed on the Consent Agenda as well as other items not included on the Regular Agenda. If your comments concern an item noted on the Regular Agenda, please address the Council when that item is open for public comment.
The City requests that persons addressing the City Council refrain from making personal, slanderous, profane, or disruptive remarks.
Councilmembers, when recognized by the Mayor, may ask clarifying questions of presenter but no action may be taken by the City Council during the public comment section of the meeting. Under the Brown Act, the City Council is prohibited from discussing or taking action on any item not listed on the posted agenda.
This time is set aside for residents to address the City Council on matters listed on the Consent Agenda as well as other items not included on the Agenda. If your comments concern an item listed under the Public Hearing or New Business sections of the Agenda, please address the Council when that item is open for public comment.
Yreka City Council Agenda
April 16, 2024
• Please speak into the microphone from the podium. The podium electronically adjusts up and down to accommodate speaker.
• Please state your name for the record prior to providing your comments. • Please address the Council as a whole.
• If you have documents to present, please provide a minimum of seven (7) copies. These become a public record.
• Please limit your remarks to five (5) minutes.
• Since Council is unable to take action on issues not on the agenda, your matter may be referred to staff for follow up or be placed on a future agenda.
The public comment period is not intended to be a “Question and Answer” period or conversations with the Council or City staff.
Public comment was received by: Tad White, Jan Osborne, and Suzanne Verdal McAlister
8. CONSENT AGENDA:
All matters listed under the consent agenda are considered routine and non-controversial and will be enacted by one motion unless any member of the Council wishes to remove an item for discussion, a. Approval/ratification of payments issued from March 10, 2024, to March 24, 2024. b. Approval of Minutes of the Regular Meeting held March 19, 2024. c. Appointment of Austin Winklehausen as a Volunteer to the Yreka Fire Department. d. Adoption of the April 2024 Siskiyou Child Abuse Prevention Council Collaborative Proclamation. e. Approval of Resolution 2024-15 of the City Council of the City of Yreka Authorizing the Submission of an Application to the California Department of Housing and Community Development for Funding Under the Homes Investment Partnerships Program and Execution of a Standard Agreement if Selected.
f. Approval of the Yreka Police Department to Apply for an Equipment Grant Through the Arthur R.
Dubbs Foundation.
g. Approval of Lease Agreement Through June 30, 2027, for 400 S. Foothill Drive (APN: 54-191-290- 000) to the County of Siskiyou for Bridge Housing and Supportive Services Recommended City Council Action: Motion to Adopt the Consent Agenda of the City Council of the City of Yreka as presented.
Motion to Adopt Consent Agenda Items 7a, 7b, 7c, 7d, 7f, & 7g of the City Council of the City of Yreka as presented.
MOTIONED: Councilmember Kegg
SECOND: Councilmember Davis
AYES: Councilmembers Davis, Kegg, Baker, Middleton, & McCoy NO’s: -0-
ABSTAIN: -0-
ABSENT: -0-
Motion to Adopt Consent Agenda item 7e of the City Council of the City of Yreka as presented.
Yreka City Council Agenda
April 16, 2024
MOTIONED: Councilmember Baker
SECOND: Councilmember Kegg
AYES: Councilmembers Kegg, Davis, Baker, McCoy, & Middleton NO’s: -0-
ABSTAIN: -0-
ABSENT: -0-
9. OLD BUSINESS: (None)
10. PUBLIC HEARINGS: (None)
Public Hearing Protocol:
i. Mayor will describe the purpose of the Public Hearing. ii. City Staff will provide the Staff Report.
iii. City Staff will respond to questions from the City Council. iv. Mayor will open the Public Hearing.
v. Public wanting to comment will come to the podium, provide the City Clerk with their name and address, and provide their comments.
vi. Mayor will close the Public Hearing.
vii. City Council will deliberate and act on the item.
11. NEW BUSINESS: (None)
12. CITY MANAGER/STAFF REPORTS:
City Manager and Staff may make brief announcements or reports at this time.
City Manager Jason Ledbetter stated that public works is working on the HVAC contract for the community theatre project as well as went over the upcoming street projects, Burgess Street Sewer Project, Southern Oregon Rehabilitation Project, and chip sealing projects.
13. MAYOR/COUNCILMEMBERS REPORTS, STATEMENTS AND REQUESTS:
AB 1234* Conference and Meeting Report (verbal, if any) *(In accordance with AB 1234, Councilmembers shall make a brief report or file a written report on any meeting/event/conference attended at City expense.) Councilmember Baker requested that the Transportation Plan Survey be linked on the city’s website in addition to being posted on the city’s Facebook page. Councilmember Baker asked if there will be any participants from the city that will be attending The Walk Audit that is calendared for April 24th.
Councilmember Davis stated that the Fire Safe council met via zoom. Councilmember Davis gave an update as to the fire protection that CalFire is currently doing around the city. Councilmember Davis suggested that a change be made to the agenda to allow a separate special presentation for the new volunteer fire fighters.
Councilmember Kegg will be attending the CLC meeting at Behavioral Health on April 3rd.
Councilmember Kegg inquired about volunteers assisting with the cleanup of the Blacksmith building located at Greenhorn Park. Councilmember Kegg spoke to the repeal of Proposition 47.
Councilmember McCoy spoke to being interested in volunteering at Discovery High School if the need arises.
Yreka City Council Agenda
April 16, 2024
Councilmember Middleton attended the Fire Department Fundraiser dinner on March 23rd.
Councilmember Middleton stated that he will be attending the LOLA dinner April 10th in Mt. Shasta.
14. ADJOURNMENT:
The meeting was adjourned at 7:57 pm.
____________________________
Corey Middleton, Mayor
Minutes approved by City Council
Motion on April 16, 2024
__________________________
Cyndy Prohaska, City Clerk
Yreka City Council Agenda
April 16, 2024
Corey Middleton, Mayor
Paul McCoy, Mayor Pro tempore
Colleen Baker, Councilmember
Drake Davis, Councilmember
Duane Kegg, Councilmember
Jason Ledbetter, City Manager
Rhetta Hogan, Asst. City Manager
Emily Aldrich, Finance Director
Matthew Bray, Public Works Director
John Elsnab, Human Resources Director
Mark Gilman, Police Chief
Andrew Jared, City Attorney
Jerry Lemos, Fire Chief
Juliana Lucchesi, Community Dev. Director
Cyndy Prohaska, City Clerk
YREKA CITY COUNCIL SPECIAL MEETING MINUTES
Wednesday, April 10, 2024, at 2:30 PM
Yreka City Council Chamber, 701 Fourth Street, Yreka, CA 96097 Phone 530-841-2386, Facsimile 530-842-4836, email: [email protected] Regular Meetings of the Yreka City Council are held the 1st and 3rd Tuesday of every month.
The full agenda packet can be found on the City’s website at www.ci.yreka.ca.us/AgendaCenter. Copies of all staff reports and documents subject to disclosure that relate to any item of business referred to on the agenda are available for public inspection 72 hours before each regularly scheduled meeting at the City Clerk’s office at City Hall, located at 701 4th St, Yreka, California during normal business hours. Any writing that is subject to disclosure that relates to an agenda item for open session distributed less than 72 hours prior to the meeting will be available for public inspection at the City Clerk’s office during normal business hours.
Materials distributed to a majority of councilmembers less than 72 hours before a meeting will be available for public inspection on the City’s website at www.ci.yreka.ca.us/AgendaCenter.
Please note the following change to the City’s public comment procedures: Unless a Councilmember is participating in the meeting remotely pursuant to AB 2449, remote public comment will not be accepted.
Public comment may be provided in-person or via email, as set forth below. Members of the public desiring to provide comments as a part of the meeting are encouraged to either submit written comments by 3:00 p.m. to the City Clerk prior to the meeting or to attend the meeting in person." Written comments will be distributed to the Councilmembers but will not be read aloud at the meeting.
1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE:
The meeting was called to order at 2:33 pm
2. PUBLIC COMMENT:
Public participation is limited to those items listed on the agenda.
If your comments do not concern an item listed on this Agenda, please address the City Council at the next regular meeting.
The City requests that persons addressing the City Council refrain from making personal, slanderous, profane, or disruptive remarks.
Councilmembers, when recognized by the Mayor, may ask questions of presenter but no action may be taken by the City Council during the public comment section of the meeting. Under the Brown Act, the City Council is prohibited from discussing or taking action on any item not listed on the posted agenda.
Yreka City Council Agenda
April 16, 2024
• Please speak into the microphone from the podium. The podium electronically adjusts up and down to accommodate speaker.
• Please state your name for the record prior to providing your comments. • Please address the Council as a whole.
• If you have documents to present, please provide a minimum of seven (7) copies. These become a public record.
• Please limit your remarks to five (5) minutes.
• Since Council is unable to take action on issues not on the agenda, your matter may be referred to staff for follow up or be placed on a future agenda.
Public comment period is not intended to be a “Question and Answer” period or conversations with the Council or City staff.
No public comment was received.
3. CLOSED SESSION:
The City Council will recess to Closed Session to discuss the following item(s). At the conclusion of the Closed Session, Open Session will reconvene and reportable action, if any, will be announced:
a. Conference with legal counsel—anticipated litigation (City Initiating) (Govt C §54956.9(d)(4)) - Number of cases: 1
b. Conference with legal with counsel – pending litigation (Govt C §54956.9(d)(1)) - Yreka Properties LLC dba Yreka Truck Stop, et al v. City of Yreka - Siskiyou County Case Number 24CV00401
c. Public Employee Performance Evaluation § 54957
- Review Attorney Contracts
4. RETURN TO OPEN SESSION:
Announcement of any action taken by the City Council in Closed Session required by the Ralph M. Brown Act. (Government Code § 54950 et. seq.)
There was no reportable action.
5. ADJOURNMENT:
The meeting was adjourned at 4:18 pm.
____________________________
Corey Middleton, Mayor
Minutes approved by City Council
Motion on April 16, 2024
__________________________
Cyndy Prohaska, City Clerk
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council
From: Jason Ledbetter, City Manager
Prepared by: Alia Roca Lezra, Planning Manager
Agenda title: Recommended Action: A Motion to Approve Resolution #2024-16 of the City Council of the City of Yreka Approving Downtown Miner Street Closures for the Special Event Known as the “Yreka Farmer’s Market.” Meeting date: April 16, 2024
Summary: This Staff Report and Resolution #2024-16 are a continuation of the discussion regarding the Special Event known as the Yreka Farmer’s Market, which was approved by the City Council at the March 19, 2024, Regular Meeting. The Event Coordinator has requested the exclusive use of the 300 Block of Downtown Miner Street for the Farmer’s Market each Friday beginning May 31st, 2024, and ending November 1st, 2024, for a total of twenty-five street closures.
Pursuant to Government Code Section 21101(e), the City Council has authority to designate by resolution a temporary closing of a through street where the closing is necessary for the safety and protection of persons who are to use that portion of the street during temporary closing. Staff recommend the approval of the requested street closures for the Event.
Fiscal Impact: The City Council committed $12,600 from the City Council Community Fund for the event at the City Council Regular Meeting on March 19, 2024, which will cover the cost of City Staff time and equipment needed to close the streets. No fiscal impact is associated with the approval of Resolution #2024-16.
Recommendation and Requested Action: A Motion to Approve Resolution #2024-16 of the City Council of the City of Yreka Approving Downtown Miner Street Closures for the Special Event Known as the “Yreka Farmer’s Market.”
Yreka City Council Agenda
April 16, 2024
1 RESOLUTION NO. 2024-16
2 3 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YREKA 4 APPROVING DOWNTOWN MINER STREET CLOSURES FOR THE SPECIAL EVENT 5 KNOWN AS “YREKA FARMER’S MARKET”
6 7 WHEREAS, the City, a municipal corporation is the owner of certain lands within City of Yreka 8 which are operated by the City as public municipal facilities; and 9 10 WHEREAS, Debbie Scott (hereafter also referred to as “Event Coordinator”) is coordinating a 11 special event known as the “Yreka Farmer’s Market” (hereafter also referred to as “Special 12 Event”); and
13 14 WHEREAS, the Special Event would require street closures on Downtown Miner Street; and 15 16 WHEREAS, due to the proposed plan submitted for the events, the event Coordinator has 17 demonstrated that the following provisions of the Yreka Municipal Code (YMC) are not 18 adversely implicated by this event:
19 20 Vehicle controls – YMC Chapter 10.73,
21 Sound Amplifying Devices – YMC Chapter 9.28,
22 Temporary Signs – YMC Section 13.16.020(d),
23 Business License – YMC Section 5.04; and
24 25 WHEREAS, in conjunction with this Special Event, the event Coordinator requests temporary 26 closures of Downtown Miner Street; and
27 28 WHEREAS, pursuant to Government Code Section 21101(e) the City Council has authority to 29 designate by resolution a temporary closing of a through street where the closing is necessary for 30 the safety and protection of persons who are to use that portion of the street during the temporary 31 closing; and
32 33 WHEREAS, the City Council finds that the closing of the requested streets is necessary for the 34 safety and protection of persons who are to use that portion of the street during the temporary 35 closing; and
36 37 WHEREAS, the Event Coordinator has demonstrated to the City its eligibility under YMC 38 5.04.160, and that the event will not disrupt traffic within the City beyond practical solution; will 39 not interfere with the access to fire stations and fire hydrants; the location of the special event will 40 not require the diversion of so many public employees that allowing the event would 41 unreasonably deny service to the remainder of the city; and, 42 43 WHEREAS, pursuant to Title 14 of the California Code of Regulations, Section 15061(b)(3) that 44 this action is exempt from the requirements of the California Environmental Quality Act (CEQA) 45 in that it is not a Project which has potential for causing a significant effect on the environment; 46 and
47 Yreka City Council Agenda
April 16, 2024
48 WHEREAS, the City Council has determined it would be in the best interest of the City to 49 approve and authorize the action outlined in this Resolution. 50 51 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF YREKA DOES HEREBY 52 RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
53 54 Section 1. The Council hereby finds and determines that the foregoing recitals are true and 55 correct.
56 57 Section 2. The City Council directs as follows:
58 a) Temporary Street Closures: Contingent on the Event Coordinator’s submission of an 59 engineered Traffic Control Plan, a portion of Downtown Miner Street (between Oregon 60 St and Fourth St.) shall be reserved for the Special Event and shall be subject to the terms 61 and conditions as set forth hereafter and as required by the Planning Department. The closures will occur from 2pm-7pm every Friday beginning May 31st 62 , 2024, and ending November 1st 63 , 2024, for a total of twenty-five street closures. The Event Coordinator 64 shall submit the engineered Traffic Control Plan to the Planning Department at least two 65 (2) weeks prior to the first day of the Farmer’s Market. The Department of Public Works 66 shall prepare a Use and Encroachment Permit to that effect to be executed by the Event 67 Coordinator prior to any use.
68 b) A permit is granted for the exclusive use of Downtown Miner Street contingent on the 69 City’s approval of a Traffic Control Plan. The Event Coordinator shall install reservation 70 signs in the closure area prior to and during the event. Reservation signs must be posted 71 48 hours prior to the start of the event.
72 c) The Event Coordinator is hereby issued a temporary use permit and business license for 73 this event and is exempt from the business license tax. The exemption from the tax shall 74 not apply to vendors at the event unless each vendor can separately demonstrate 75 eligibility for exemption. The Event Coordinator may add vendors to their event and the 76 City will work with the Event Coordinator to facilitate issuance of the daily business 77 licenses for the event.
78 d) The Event Coordinator shall work with the Planning Manager on items related to the 79 event which require action from City departments.
80 e) The Event Coordinator shall provide the City with proof of general liability insurance of 81 not less than $1,000,000 and separate endorsement naming the City of Yreka as 82 additionally insured specific to the event dates and location no fewer than two (2) weeks 83 prior to the event. Event Coordinator will be responsible and hold harmless the City for 84 acts of volunteers and vendors.
85 f) The Event Coordinator shall provide the City with a Detailed Special Event Site Plan 86 containing all elements indicated on their Special Event Application. The Detailed 87 Special Event Site Plan shall be submitted to the City at least four (4) weeks prior to the 88 first date listed on the attached Special Event Schedule. Major elements not depicted in 89 the Event Coordinator’s City-approved Detailed Special Event Site Plan shall not be 90 permitted at the event.
91 g) The Event Coordinator shall comply with all other City of Yreka ordinances and shall 92 comply with such further conditions and requirements as may be set by the Planning, 93 Public Works, Fire, or Police Departments.
Yreka City Council Agenda
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94 h) The Event Coordinator shall not place any paint on park areas, street pavement, curb, 95 gutter, or sidewalk. Any markings on park areas, street pavement, curb, gutter, and 96 sidewalk shall be included in the Detailed Special Event Site Plan, shall be of a 97 temporary nature, and shall be removed by the event Coordinator within one (1) day after 98 the end of the event.
99 i) The Event Coordinator shall be responsible for requested City services that are not 100 covered by the $12,600 in operations support committed by the City Council on March 101 19, 2024.
102 j) The Department of Public Works is directed to prepare the Use and Encroachment Permit 103 to be signed by the Event Coordinator setting forth the terms of use in accordance with 104 this Resolution.
105
106 Section 3. It is further resolved, if any section, subsection, part, clause, sentence or phrase of this 107 Resolution or application thereof is for any reason held to be invalid or unconstitutional by a 108 decision of any court of competent jurisdiction, the validity of the remaining portions of this 109 Resolution, the application thereof, shall not be effected thereby but shall remain in full force and 110 effect, it being the intention of the City Council to adopt each and every section, subsection, part, 111 clause, sentence phrase regardless of whether any other section, subsection, part, clause, sentence 112 or phrase or the application thereof is held to be invalid or unconstitutional. 113
114 Section 4. The City Manager, Community Development Director, Public Works Director, and all 115 other proper officers and officials of the City are hereby authorized and directed to execute such 116 other agreements, documents, and certificates, and to perform such other acts and deeds, as may 117 be necessary or convenient to affect the purposes of this Resolution and the transactions herein 118 authorized.
119
120 Section 5. The City Clerk of the City shall forward a copy of this Resolution to the Event 121 Coordinator, Public Works Maintenance Manager, Planning Manager, and Chief of Police. This 122 Resolution shall take effect immediately upon its passage. 123
Passed and adopted this 16th 124 day of April 2024, by the following vote:
125
126 AYES:
127 NAYS:
128 ABSENT:
129 ABSTAIN:
130
131 ________________________
132 Corey Middleton, Mayor
133
134
135 Attest:__________________
136 Cyndy Prohaska,
137 City Clerk
138
139
140
Yreka City Council Agenda
April 16, 2024
CITY COUNCIL AGENDA MEMORANDUM
TO:
FROM:
PREPARED BY:
Yreka City Council
Jason Ledbetter, City Manager
Matt Bray, Director of Public Works
John Elsnab, Human Resources Director
AGENDA TITLE: Discussion/Possible Action – Adopt a Resolution by the City Council Approving Salary Schedule Amendment for the
Wastewater Manager and Water Manager Classifications
MEETING DATE: April 16, 2024
Background
The City’s wastewater and water treatment plants have historically operated under a Grade III classification system through the California State Water Board. The City is also mandated by the State of California to have a licensed Operator present to respond to plant emergencies and maintain safe operations. Over the past few years, the City has experienced marginal growth, as well as upgrades to the treatment plants that have increased the licensing requirements to operate. Some of the upgrades that increased the licensing requirement to a Grade IV plant are associated with tertiary treatment methods, design flow, treatment volume, and the filter design of the plant.
Discussion
After assessing the current licensing requirements for the wastewater and water treatment plants, both facilities are either currently a Grade IV plant, or they are going in the direction of becoming a Grade IV plant following infrastructure improvements and residential developments. To maintain licensed operators that are critical to maintaining the City’s infrastructure, City staff believes additional compensation of 5% will incentivize and retain current license holders, as well as increase the salary range to attract licensed operators, if a vacancy occurs. The chief plant operators at both plants have also obtained a Grade IV license on their own, prior to the City acknowledging the classification changes.
City staff have completed the meet and confer process with the Yreka Management Employees Unit (YMEU) to discuss the proposed changes to compensation. There are Yreka City Council Agenda
April 16, 2024
two budgeted positions that would benefit from the increased compensation, which includes the Wastewater Manager and Water Manager. Lastly, along with the increase in compensation, the job classifications for both positions have been updated to include a Grade IV license in the qualifications. The effective date of the salary schedule increases will be the first full pay period following adoption by the City Council.
Fiscal Impact:
The fiscal impact of the Wastewater Manager and Water Manager’s wages will be increased by approximately $11,470.35 over the term of the contract.
Recommendation and Requested Action:
Adopt a Resolution by the City Council of the City of Yreka Authorizing the City Manager to Engage in a Side Letter Agreement with the Yreka Management Employees Unit (YMEU) to Amend the Salary Schedule Ranges for the Wastewater Manager and Water Manager.
Approved by: __________________________________
Jason Ledbetter, City Manager
Attachments:
• Updated Job Classification - Wastewater Treatment Manager • Updated Job Classification - Water Manager
Yreka City Council Agenda
April 16, 2024
APRIL 2024 MAY 2017
FLSA STATUS: NON-EXEMPT
WASTEWATER TREATMENT PLANT MANAGER
DEFINITION
Under general direction, plans, organizes, oversees, coordinates, reviews, and participates in the work of staff performing difficult and complex duties in the operation and maintenance of the City’s wastewater treatment plant and related appurtenances; assists with short- and long-term project planning; ensures plant operations and treatment systems are compliant with regulatory agency regulations; coordinates assigned activities with other City departments and outside agencies; provides complex and responsible support to the Director of Public Works, and others in areas of expertise; and performs related work as required
SUPERVISION RECEIVED AND EXERCISED
Receives general direction from the Director of Public Works. Exercises supervision over technical and administrative support staff.
CLASS CHARACTERISTICS
This is a management classification that manages the operations, maintenance, and repair of the City’s wastewater treatment system, including treatment plant equipment, facilities, pump stations and related appurtenances. Responsibilities include performing diverse, specialized, and complex work involving significant accountability and decision-making responsibility. The incumbent participates in short- and long-term capital improvement planning and development, and the administration of funds for capital improvements and expansions. Successful performance of the work requires an extensive professional background as well as skill in coordinating work with that of other City departments and public agencies.
This class is distinguished from Director of Public Works in that the latter has overall responsibility for all City public works engineering, maintenance and operations functions, as well as implementing and interpreting public policy.
EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only)
Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job.
➢ Plans, manages, and oversees the daily functions, operations, and activities of the City’s wastewater treatment system, including treatment plant equipment, facilities, pump stations and related appurtenances; ensures operational compliance with regulatory agency regulations. ➢ Participates in the development and implementation of goals, objectives, policies, and priorities for assigned areas; recommends within departmental policy, appropriate service and staffing levels; recommends and administers policies and procedures.
➢ Participates in the development and administration of, and oversees, the division’s budget.
Yreka City Council Agenda
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Wastewater Treatment Plant Manager
➢ Develops and standardizes procedures and methods to improve and continuously monitors the efficiency and effectiveness of assigned programs, service delivery methods, and procedures; assesses and monitors workload, administrative and support systems, and internal reporting relationships; identifies opportunities for improvement and recommends to the Director of Public Works. ➢ Participates in the selection of, trains, motivates, and evaluates assigned personnel; provides or coordinates staff training; works with employees on performance issues; implements discipline and termination procedures.
➢ Recommends and administers policies and procedures such as treatment procedure guidelines, standards and specifications while ensuring that operation and maintenance, financial, regulatory, and legal requirements are met.
➢ Oversees the development of consultant requests for proposal for professional and/or construction services and the advertising and bid processes; evaluates proposals and recommends project award; administers contracts after award.
➢ Manages the work of engineers, consultants, inspectors, and contractors responsible for capital and operational engineering projects, construction management, and plant operations and maintenance improvements.
➢ Based on plant licensure requirements, supervises the work of operators and/or serves in a Chief Operator capacity; monitors plant operations equipment and processes to ensure compliance with environmental and public health standards, including monitoring and making adjustments as needed to optimize efficiency, making chemical dosage changes, changing pumping rates, and monitoring all equipment daily.
➢ Reviews and analyzes automated information and control system data and revises equipment settings as appropriate; conducts inspections and corrects system problems as necessary. ➢ Reads, records, and calculates readings of meters and gauges; interprets information into operational characteristics; changes flow meter charts; makes process adjustments according to information gathered, samples collected, readings, and records.
➢ Schedules treatment monitoring operations; ensure the use of effective and sufficient sampling techniques; submits required paperwork to regulatory agencies. ➢ Serves as a liaison for the assigned division to other City departments, divisions, and outside agencies; attends meetings, as necessary; negotiates and resolves significant and controversial issues. ➢ Provides highly complex staff assistance to the Director of Public Works; develops and reviews staff reports related to assigned activities and services.
➢ Attends and participates in professional group meetings; stays abreast of new trends and innovations in the field of wastewater treatment; researches emerging products and enhancements and their applicability to City needs.
➢ Monitors changes in regulations and technology that may affect operations; implements policy and procedural changes after approval.
➢ Receives, investigates, and responds to difficult and sensitive problems and complaints in a professional manner; identifies and reports findings and takes necessary corrective action. ➢ Ensures operators follow City policies and procedures including safety rules and OSHA guidelines. ➢ Responsible for Federal, State, and local agency documentation and reporting requirements such as plant outages, environmental discharges, and recordkeeping compliance. ➢ Performs other duties as assigned.
QUALIFICATIONS
Knowledge of:
Yreka City Council Agenda
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Wastewater Treatment Plant Manager
➢ Administrative principles and practices, including goal setting, program development, implementation, and evaluation, and project management. ➢ Principles and practices of budget development and administration. ➢ Principles and practices of employee supervision, including work planning, assignment, review and evaluation, and the training of staff in work procedures. ➢ Organization and management practices as applied to the development, analysis, and evaluation of programs, policies, and operational needs of the assigned functional area. ➢ Methods, materials, and techniques used in the construction of wastewater system and treatment infrastructure and facilities.
➢ Contract management practices in a public agency setting. ➢ Principles and practices of construction project management. ➢ Principles, practices, tools, and materials as they relate to the operation, cleaning, and preventive maintenance of wastewater treatment and disposal facilities and equipment. ➢ The operation and preventive maintenance of piping systems, including pipes, valves, and related appurtenances.
➢ Methods and techniques of troubleshooting, maintaining and repairing equipment used in a wastewater treatment plant.
➢ Methods and techniques of collecting sufficient samples to conduct testing. ➢ Standard chemical and physical tests of wastewater, sludge, and related materials. ➢ Industrial waste processes and permitting.
➢ Mechanical, electrical, and hydraulic principles.
➢ Occupational hazards and safety equipment and practices related to the work, including the handling of hazardous chemicals and confined space entry.
➢ Applicable Federal, State, and local laws, regulatory codes, ordinances, and procedures relevant to assigned area of responsibility.
➢ Practices of researching operations and maintenance issues, evaluating alternatives, making sound recommendations, and preparing and presenting effective staff reports. ➢ General principles of risk management related to the functions of the assigned area. ➢ Recent and on-going developments, current literature, and sources of information related to wastewater treatment and management.
➢ Record keeping principles and procedures.
➢ Modern office practices, methods, and computer equipment which may include, but is not limited to, mobile technology and electronic devices, and software programs related to the work. ➢ English usage, grammar, spelling, vocabulary, and punctuation. ➢ Techniques for effectively representing the City in contacts with governmental agencies, community groups, and various business, professional, regulatory, and legislative organizations. ➢ Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.
Ability to:
➢ Recommend and implement goals, objectives, and practices for providing effective and efficient services.
➢ Administer complex and technical wastewater treatment operations, maintenance, and related programs in an independent and cooperative manner.
➢ Maintain compliance with regulatory permits.
➢ Plan, organize, assign, review, and evaluate the work of staff; train staff in work procedures. ➢ Evaluate and develop improvements in operations, procedures, policies, or methods. ➢ Research, analyze, and evaluate new service delivery methods, procedures, and techniques.
Yreka City Council Agenda
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Wastewater Treatment Plant Manager
➢ Read and interpret complex design and construction plans and specifications. ➢ Operate, maintain, and repair a variety of wastewater treatment and disposal facilities and equipment.
➢ Recognize and correct unusual, inefficient, or dangerous operating conditions. ➢ Read a variety of gauges, charts, and meters, record data accurately and make appropriate process adjustments.
➢ Conduct standard chemical and physical tests of wastewater, sludge, and related materials. ➢ Handle hazardous chemicals in a safe manner
➢ Direct accurate sample collection techniques to ensure proper testing of wastewater. ➢ Observe, interpret and apply information obtained through various systems and instruments to make adjustments to processes or materials.
➢ Prepare clear and concise reports, correspondence, policies, procedures, and other written materials including reports to regulatory agencies.
➢ Analyze, interpret, summarize, and present administrative and technical information and data in an effective manner.
➢ Interpret, apply, explain, and ensure compliance with Federal, State, and local policies, procedures, laws, and regulations.
➢ Conduct complex research projects, evaluate alternatives, make sound recommendations, and prepare effective technical staff reports.
➢ Effectively represent the department and the City in meetings with governmental agencies, community groups, and various businesses, professional, and regulatory organizations and in meetings with individuals.
➢ Establish and maintain a variety of filing, record keeping, and tracking systems. ➢ Operate modern office equipment including computer equipment and software programs relevant to work performed.
➢ Organize and prioritize a variety of projects and multiple tasks in an effective and timely manner; organize own work, set priorities, and meet critical time deadlines. ➢ Make sound, independent decisions within established policy and procedural guidelines. ➢ Use tact, initiative, prudence, and independent judgment within general policy and legal guidelines. ➢ Use English effectively to communicate in person, over the telephone, and in writing. ➢ Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.
Education and Experience:
Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be A two-year college degree and at least two (2) years of supervisory experience is preferred.
Equivalent to completion of the twelfth (12th) grade supplemented by college-level coursework and/or specialized technical training in wastewater treatment or a related field and five (5) years of increasingly responsible experience in wastewater treatment program management, including two (2) years of supervisory and/or administrative experience. A two-year college degree is preferred.
Licenses and Certifications:
➢ Possession of, or ability to obtain, a valid California Driver’s License by date of appointment.
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Wastewater Treatment Plant Manager
➢ Possess and maintain a valid Grade IVIII or higher Wastewater Treatment Operator Certificate issued by the State of California.
PHYSICAL DEMANDS
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer; to operate a motor vehicle and to visit various City and meeting sites; vision to read printed materials and a computer screen; and hearing and speech to communicate in person, before groups, and over the telephone. This is primarily a sedentary office classification although standing and walking between work areas may be required. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office equipment. Positions in this classification occasionally bend, stoop, kneel, reach, push, and pull drawers open and closed to retrieve and file information. Employees must possess the ability to lift, carry, push, and pull materials and objects up to 25 pounds. When working in the plant environment, employees must possess the ability to lift, carry, push, and pull materials and objects up to 50 pounds and heavier weights with the use of proper equipment.
ENVIRONMENTAL ELEMENTS
Employees work in an office environment with moderate noise levels, controlled temperature conditions, and no direct exposure to hazardous physical substance. Employees may interact with frustrated or irritated individuals in interpreting and enforcing department policies and procedures.
When working in a field environment, employees work partially indoors and partially outdoors and are exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, vibration, confining workspace, chemicals, mechanical and/or electrical hazards, and hazardous physical substances, odors, and fumes.
Yreka City Council Agenda
April 16, 2024
APRIL 2024MAY 2017
FLSA STATUS: NON-EXEMPT
WATER SERVICES MANAGER
DEFINITION
Under general direction, plans, organizes, oversees, coordinates, reviews, and participates in the work of staff performing difficult and complex duties in the operation and maintenance of the City’s water supply, treatment plant and related appurtenances; assists with short- and long-term project planning; ensures the availability of safe and high quality water to the City; manages the City’s Water Efficiency Program; coordinates assigned activities with other City departments and outside agencies; provides complex and responsible support to the Director of Public Works, and others in areas of expertise; and performs related work as required
SUPERVISION RECEIVED AND EXERCISED
Receives general direction from the Director of Public Works. Exercises supervision over technical and administrative support staff.
CLASS CHARACTERISTICS
This is a management classification that manages the operations, maintenance, and repair of the City’s water treatment supply and system, including the treatment plant and related appurtenances.
Responsibilities include performing diverse, specialized, and complex work involving significant accountability and decision-making responsibility. The incumbent participates in short- and long-term capital improvement planning, and development, and the administration of funds for capital improvements and expansions. Successful performance of the work requires an extensive professional background as well as skill in coordinating work with that of other City departments and public agencies.
This class is distinguished from Director of Public Works in that the latter has overall responsibility for all City public works engineering, maintenance and operations functions, as well as implementing and interpreting public policy.
EXAMPLES OF TYPICAL JOB FUNCTIONS (Illustrative Only)
Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job.
➢ Plans, manages, and oversees the daily functions, operations, and activities of the City’s water supply and treatment system, as well as the Water Efficiency program. ➢ Participates in the development and implementation of goals, objectives, policies, and priorities for assigned areas; recommends within departmental policy, appropriate service and staffing levels; recommends and administers policies and procedures.
➢ Participates in the development and administration of, and oversees, the division’s budget. ➢ Develops and standardizes procedures and methods to improve and continuously monitors the efficiency and effectiveness of assigned programs, service delivery methods, and procedures; assesses Yreka City Council Agenda
April 16, 2024
Water Services Manager
and monitors workload, administrative and support systems, and internal reporting relationships; identifies opportunities for improvement and recommends to the Director of Public Works. ➢ Participates in the selection of, trains, motivates, and evaluates assigned personnel; provides or coordinates staff training; works with employees on performance issues; implements discipline and termination procedures.
➢ Recommends and administers policies and procedures such as treatment procedure guidelines, standards and specifications while ensuring that operation and maintenance, financial, regulatory, and legal requirements are met.
➢ Oversees the development of consultant requests for proposal for professional and/or construction services and the advertising and bid processes; evaluates proposals and recommends project award; administers contracts after award.
➢ Manages the work of engineers, consultants, inspectors, and contractors responsible for capital and operational engineering projects, construction management, plant operations, and maintenance improvements.
➢ Based on plant licensure requirements, supervises the work of operators and/or serves in a Chief Operator capacity; operates water supplement and treatment systems including chemical feeding equipment; utilizes telemetry system, filtration equipment, pumping stations, pressure zones through pressure reducing valves, pipelines and storage tanks.
➢ Schedules water quality monitoring operations; ensure the use of effective and sufficient sampling techniques; submits required paperwork to regulatory agencies. ➢ Manages the City’s Water Efficiency Program; maintains compliance with the California Urban Water Conservation Council’s Best Management Practices; ensures reporting and compliance with regulatory agency drought and conservation related regulations. ➢ Serves as a liaison for the assigned division to other City departments, divisions, and outside agencies; attends meetings, as necessary; negotiates and resolves significant and controversial issues. ➢ Provides highly complex staff assistance to the Director of Public Works; develops and reviews staff reports related to assigned activities and services.
➢ Attends and participates in professional group meetings; stays abreast of new trends and innovations in the field of water supply, treatment and conservation; researches emerging products and enhancements and their applicability to City needs.
➢ Monitors changes in regulations and technology that may affect operations; implements policy and procedural changes after approval.
➢ Receives, investigates, and responds to difficult and sensitive problems and complaints in a professional manner; identifies and reports findings and takes necessary corrective action. ➢ Ensures operators follow City policies and procedures including safety rules and OSHA guidelines. ➢ Responsible for Federal, State, and local agency documentation and reporting requirements. ➢ Performs other duties as assigned.
QUALIFICATIONS
Knowledge of:
➢ Administrative principles and practices, including goal setting, program development, implementation, and evaluation, and project management. ➢ Principles and practices of budget development and administration. ➢ Principles and practices of employee supervision, including work planning, assignment, review and evaluation, and the training of staff in work procedures. ➢ Organization and management practices as applied to the development, analysis, and evaluation of programs, policies, and operational needs of the assigned functional area.
Yreka City Council Agenda
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Water Services Manager
➢ Methods, materials, and techniques used in the construction of water systems and treatment infrastructure and facilities.
➢ Contract management practices in a public agency setting. ➢ Principles and practices of construction project management. ➢ Principles, practices, tools, equipment, and supplies required to maintain, operate, and control water treatment and distribution systems, reservoirs, and pump stations. ➢ Methods and techniques of calibrating equipment and appurtenances used in water treatment plants. ➢ Computer software related to the work, including the operation of the water telemetry system (SCADA) and related devices/components such as programmable logic controllers. ➢ Occupational hazards and safety equipment and practices related to the work, including the handling of hazardous chemicals and confined space entry.
➢ Principles and practices of water conservation including best management practices and regulations. ➢ Applicable Federal, State, and local laws, regulatory codes, ordinances, and procedures relevant to assigned area of responsibility.
➢ Practices of researching operations and maintenance issues, evaluating alternatives, making sound recommendations, and preparing and presenting effective staff reports. ➢ General principles of risk management related to the functions of the assigned area. ➢ Recent and on-going developments, current literature, and sources of information related to water treatment, quality and conservation.
➢ Record keeping principles and procedures.
➢ Modern office practices, methods, and computer equipment which may include, but is not limited to, mobile technology and electronic devices, and software related to the work. ➢ English usage, grammar, spelling, vocabulary, and punctuation. ➢ Techniques for effectively representing the City in contacts with governmental agencies, community groups, and various business, professional, regulatory, and legislative organizations. ➢ Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and City staff.
Ability to:
➢ Recommend and implement goals, objectives, and practices for providing effective and efficient services.
➢ Administer complex and technical operations, maintenance, and related programs in an independent and cooperative manner.
➢ Maintain compliance with regulatory permits.
➢ Plan, organize, assign, review, and evaluate the work of staff; train staff in work procedures. ➢ Evaluate and develop improvements in operations, procedures, policies, or methods. ➢ Research, analyze, and evaluate new service delivery methods, procedures, and techniques. ➢ Read and interpret complex design and construction plans and specifications. ➢ Operate and maintain systems and equipment used in the treatment of clean and safe water. ➢ Diagnose and resolve system and equipment operational problems. ➢ Direct accurate sample collection techniques to ensure proper testing of water. ➢ Observe, interpret and apply information obtained through various systems and instruments to make adjustments to processes or materials.
➢ Prepare clear and concise reports, correspondence, policies, procedures, and other written materials. ➢ Analyze, interpret, summarize, and present administrative and technical information and data in an effective manner.
➢ Interpret, apply, explain, and ensure compliance with Federal, State, and local policies, procedures, laws, and regulations.
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Water Services Manager
➢ Conduct complex research projects, evaluate alternatives, make sound recommendations, and prepare effective technical staff reports.
➢ Effectively represent the department and the City in meetings with governmental agencies, community groups, and various businesses, professional, and regulatory organizations and in meetings with individuals.
➢ Establish and maintain a variety of filing, record keeping, and tracking systems. ➢ Operate modern office equipment including computer equipment and software programs relevant to work performed.
➢ Organize and prioritize a variety of projects and multiple tasks in an effective and timely manner; organize own work, set priorities, and meet critical time deadlines. ➢ Make sound, independent decisions within established policy and procedural guidelines. ➢ Use tact, initiative, prudence, and independent judgment within general policy and legal guidelines. ➢ Use English effectively to communicate in person, over the telephone, and in writing. ➢ Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.
Education and Experience:
Any combination of training and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be A two-year college degree and at least two (2) years of supervisory experience is preferred.
Equivalent to completion of the twelfth (12th) grade supplemented by college-level coursework and/or specialized technical training in water treatment and quality, or a related field and five (5) years of increasingly responsible experience in water supply and treatment program management, including two (2) years of supervisory and/or administrative experience. A two-year college degree is preferred.
Licenses and Certifications:
➢ Possession of, or ability to obtain, a valid California Driver’s License by date of appointment. ➢ Possess and maintain a valid Grade IV III or higher Water Treatment Operator Certificate issued by the State of California.
➢ Possess and maintain a valid Grade II Water Distribution Operator Certificate issued by the State of California.
PHYSICAL DEMANDS
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer; to operate a motor vehicle and to visit various City and meeting sites; vision to read printed materials and a computer screen; and hearing and speech to communicate in person, before groups, and over the telephone. This is primarily a sedentary office classification although standing and walking between work areas may be required. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office equipment. Positions in this classification occasionally bend, stoop, kneel, reach, push, and pull drawers open and closed to retrieve and file information. Employees must possess the ability to lift, carry, push, and pull materials and objects up to 25 pounds. When working in the plant or field environment, employees must possess the ability to Yreka City Council Agenda
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Water Services Manager
lift, carry, push, and pull materials and objects weighing up to 50 pounds, or heavier weights with the use of proper equipment.
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Water Services Manager
ENVIRONMENTAL ELEMENTS
Employees work in an office environment with moderate noise levels, controlled temperature conditions, and no direct exposure to hazardous physical substances. Employees may interact with frustrated or irritated individuals in interpreting and enforcing department policies and procedures.
When working in the field environment, employees are exposed to loud noise levels, cold and hot temperatures, inclement weather conditions, road hazards, vibration, confining workspace, chemicals, mechanical and/or electrical hazards, and hazardous physical substances and fumes.
Yreka City Council Agenda
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RESOLUTION NO. 2024-17
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YREKA
APPROVING SALARY SCHEDULE AMENDMENTS FOR THE
WASTEWATER MANAGER AND WATER MANAGER CLASSIFICATIONS
WHEREAS, the Personnel Officer, has met and conferred in good faith with representatives from the United Public Employees of California (LiUNA Local 792), and the Yreka Management Employees Unit (YMEU); and,
WHEREAS, the parties have agreed to amend the salary schedule range of 2144 listed on the salary schedule for the Wastewater Manager and Water Manager to reflect a five percent (5%) increase following a side letter agreement signed by both parties; and, WHEREAS, the parties have agreed to the updated job classifications for the Wastewater Manager and Water Manager through meet and confer; and; WHEREAS, the City Council authorizes the Personnel Manager to engage in a side letter agreement with the Yreka Management Employees Unit to amend the salary schedule ranges for the Wastewater Manager and Water Manager classifications; and, WHEREAS, this Council finds that the provisions and agreements contained in this resolution are fair and proper and in the best interests of the City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF YREKA DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The Council hereby finds and determines that the foregoing recitals are true and correct.
Section 2. This Resolution is hereby approved, and the City Manager or designee is hereby authorized and directed to execute said document, with such changes, insertions and omissions as may be approved by the City Manager.
Section 3. The City Manager, the Finance Director, and all other proper officers and officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized.
Section 4. It is further resolved, If any section, subsection, part, clause, sentence or phrase of this Resolution or the application thereof is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, the validity of the remaining portions of this Resolution, the application thereof, shall not be effected thereby but shall remain in full force and effect, it being the intention of the City Council to adopt each and every section, subsection, part, clause, sentence phrase regardless Yreka City Council Agenda
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of whether any other section, subsection, part, clause, sentence or phrase or the application thereof is held to be invalid or unconstitutional.
Section 5. This resolution shall take effect immediately upon its passage.
Passed and adopted this 16th day of April 2024, by the following vote:
AYES:
NAYS:
ABSENT:
__________________
Corey Middleton
Mayor
Attest:
_____________________
Cyndy Prohaska, City Clerk
Yreka City Council Agenda
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CITY OF YREKA
CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council
Prepared by: Emily Aldrich Finance Director
Agenda title: Acceptance of the City of Yreka’s Audited Financial Statements for Fiscal Year 2022-23
Meeting date: April 16, 2024
Discussion:
The City’s audited financial statements were reviewed at the Finance Committee meeting held April 9, 2024. The final reports were issued on March 13, 2024, and the report is available on the City’s website https://ci.yreka.ca.us .
The independent auditor’s report (letter to the City Council) covers internal controls over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with government auditing standards. The letter states that there was one audit findings in areas of internal control over financial reporting; which has been addressed and satisfied.
In 2022-2023, the City of Yreka was subject to the Federal Single Audit Act. The single audit act is required when the City has expended over $750,000 of federal funds (grants and loans), during the audit period, and the City’s is subject to focused review of expenditures pursuant to those grant and loan awards. Within the Single Audit Act Reports and Schedules, there were three significant findings in areas of compliance and other matters (pages 14 -15 of that report) where staff has made corrective plan.
Fiscal Impact:
Required compliance reporting for grants, debt, and State of California, State Controller’s Office per Government Code 12410.
Recommendation and Requested Action:
Acceptance of the City of Yreka’s Audited Financial Statement Fiscal Year 2022-2023 Yreka City Council Agenda
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CITY OF YREKA,
CALIFORNIA
FINANCIAL STATEMENTS
TOGETHER WITH
INDEPENDENT AUDITOR’S REPORT
FOR THE YEAR ENDED
JUNE 30, 2023
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CITY OF YREKA
Annual Financial Report
For the Year Ended June 30, 2023
Table of Contents
Page
INTRODUCTORY SECTION
List of Officials..............................................................................................................................................i
FINANCIAL SECTION
Independent Auditor’s Report....................................................................................................................1-3 Management’s Discussion and Analysis (Unaudited) .............................................................................4-23 Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position .........................................................................................................24-25 Statement of Activities................................................................................................................... 26 Fund Financial Statements:
Governmental Funds:
Balance Sheet .......................................................................................................................... 27 Reconciliation of the Governmental Funds Balance Sheet to the GovernmentWide Statement of Net Position – Governmental Activities................................................ 28 Statement of Revenues, Expenditures and Changes in Fund Balances................................... 29 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities – Governmental Activities............................................................................... 30 Proprietary Funds:
Statement of Net Position...................................................................................................31-32 Statement of Revenues, Expenses and Changes in Net Position............................................. 33 Statement of Cash Flows....................................................................................................34-35 Fiduciary Fund:
Statement of Fiduciary Net Position........................................................................................ 36 Statement of Changes in Fiduciary Net Position..................................................................... 37 Notes to Basic Financial Statements ...............................................................................................38-68 Required Supplementary Information (Unaudited):
City Pension Plan – Schedule of Proportionate Share of the Net Pension Liability ............................ 69 City Pension Plan – Schedule of Contributions.................................................................................... 70 City Pension Plan – Notes to City Pension Plan .................................................................................. 71 City OPEB Plan – Schedule of Changes in the Net OPEB Liability and Related Ratios .................... 72 City OPEB Plan – Schedule of Contributions...................................................................................... 73 City OPEB Plan – Notes to City OPEB Plan ....................................................................................... 74 Budgetary Comparison Schedule – General Fund ............................................................................... 75 Budgetary Comparison Schedule – Streets and Roads......................................................................... 76 Budgetary Comparison Schedule – Special Revenue........................................................................... 77 Notes to Budgetary Comparison Schedules ......................................................................................... 78 Yreka City Council Agenda
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INTRODUCTORY SECTION
• List of Officials
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CITY OF YREKA
List of Officials
For the Year Ended June 30, 2023
-iCity Council
Corey Middleton Mayor
Paul McCoy Mayor Pro-Tempore
Duane Kegg Member
Drake Davis Member
Colleen Baker Member
City Staff
Jason Ledbetter City Manager
Shella Rhetta Hogan Assistant City Manager, City Clerk, and Elected City Treasurer Mark Gilman Chief of Police
Andrew L. Jared City Attorney
Matthew K. Bray Director of Public Works
Emily Aldrich Finance Director
John Elsnab HR Director
Juliana Lucchesi Planning Director
Jerry Lemos Fire Chief
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FINANCIAL SECTION
• Independent Auditor’s Report
• Management’s Discussion and Analysis
• Basic Financial Statements
• Required Supplementary Information
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CERTIFIED PUBLIC ACCOUNTANTS
-1-
950 THARP ROAD, SUITE 502 YUBA CITY, CA 95993 TEL: (530) 673-9790 FAX: (530) 673-1305 [email protected]
SMITH & NEWELL
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
City of Yreka
Yreka, 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 Yreka, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the 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, 2023, 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.
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To the Honorable Mayor and Members of the City Council
City of Yreka
Yreka, California
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgement 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 judgement 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 judgement, 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.
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To the Honorable Mayor and Members of the City Council
City of Yreka
Yreka, California
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, City Pension Plan, City OPEB Plan, and budgetary comparison information as listed in the table of contents to be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquires, the basic financial statements, and other knowledge we obtain during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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 March 13, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Smith & Newell CPAs
Yuba City, California
March 13, 2024
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Management’s Discussion and Analysis
(Unaudited)
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City of Yreka
Management’s Discussion and Analysis
As management of the City of Yreka (City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2023. We provide this discussion and analysis to 1) assist the reader in focusing on significant financial issues, 2) provide an overview of the City’s financial activity, and 3) identify changes in the City’s financial position. 2022-2023 Financial Highlights:
• The financial highlights briefly describe changes in the City’s net position. Readers of the City of Yreka’s financial report will learn more about the events that affected the changes in the net position while reading the full management discussion and analysis and accompanying financial statement. • In the primary government statement of net position for both governmental and business-type activities, the total net position for the City was $64,575,783. Of this amount, $13,640,609 of the unrestricted net position may be used to meet the government’s ongoing obligations to citizens and creditors.
Governmental Activities
• Governmental activities total net position balance increased by $344,963 from $30,274,473 in 2021-22 to $30,619,436 in 2022-23. The governmental activities unrestricted net position was $3,008,189 in 2021-22 and $3,536,571 in 2022-23.
• The increase in the governmental activities total net position balance of $344,963 is primarily due to a $382,010 decrease in invested in capital assets net of related debt, a $198,591 increase in restricted net position, and increase to the unrestricted net position of $528,382. • Total assets for governmental activities balance increased $801,382 from $42,451,046 in 2021-22 to $43,252,428 in 2022-23.
o Current assets balance increased $1,490,349, where $1,670,960 was an increase in cash and investments balances, and $82,791 was a decrease to the receivables and inventory account balances.
o Restricted assets decreased by $19,448 from $638,129 in 2021-22 to $618,681 in 2022-23.
Restricted assets include donor restricted cash and debt servicing cash reserve requirements. o Net OPEB assets decreased by $212,944 from $212,944 in 2021-22 to $0 in 2022-23. o Capital assets decreased $456,575 from $23,376,842 in 2021-22 to $22,920,267 in 2022-23.
The decrease was due to depreciation expense of $1,207,307. The decrease was offset by expenditures for new assets of $836,699.
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City of Yreka
Management’s Discussion and Analysis
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o Deferred Outflows for governmental activities balance increased $3,431,921 from $2,841,666 in 2021-22 to $6,273,587 in 2022-23.
o Pension related outflows increased by $3,188,958 from $2,779,729 in 2021-22 to $5,968,687 in 2022-23.
o OPEB related outflows increased by $242,963 from $61,937 in 2021-22 to $304,900 in 2022-23.
• Total liabilities for governmental activities balance increased $6,054,172 from $10,851,156 in 2021-22 to $16,905,328 in 2022-23.
o Current liabilities balance decreased $224,935, primarily due to a $402,319 decrease in accounts payable, $214,803 decrease in payroll payable, $85,971 decrease in deposits payable, and $297 decrease in interest payable. This was offset by a $478,275 increase to unearned revenue.
o Net pension liability increased $6,253,325.
o Net OPEB liabilities increased $154,857 from $0 in 2021-22 to $154,857 in 2022-23 o Long-term debt from borrowings decreased $266,743 for scheduled debt repayments. o Compensated absences increased by a net of $48,982.
• Governmental activities deferred inflows were $4,167,083 in 2021-22 and $2,001,251 in 2022-23 for a decrease of $2,165,832.
o Pension deferred inflows decreased $2,017,522.
o OPEB deferred inflows decreased $148,310.
Business-Type Activities
• The business-type activities total net position balance increased by $4,652,893 from $29,303,454 in 2021-2022 to $33,956,347 in 2022-2023 due to:
o Invested in capital assets net of related debt increased $3,108,481. o The restricted net position represents the City’s debt servicing reserve requirements remained the same at $550,000 to satisfy full funding of the City’s debt servicing requirements. o Unrestricted net position balance increased by $1,544,412 from $8,559,626 in 2021-22 to $10,104,038 in 2022-23. The increase is primarily due to the City’s reimbursement of previously expended monies for capital projects.
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City of Yreka
Management’s Discussion and Analysis
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• Total assets for business-type activities balance increased by $3,480,547 from $48,755,263 in 2021-22 to $52,235,810 in 2022-23.
o Current asset balances decreased $249,272 from $13,026,680 in 2021-22 to $12,777,408 in 2022-23, of which cash and investment balances decreased $1,606,187 and receivable balances increased $30,290, of which $1,271,529 was an increase in intergovernmental receivables. o Net OPEB assets decreased $119,782 from $119,782 in 2021-22 to $0 in 2022-23. o Restricted cash balance remained the same at $550,000 for debt servicing reserves. o Capital assets increased $3,849,601 from $35,058,801 in 2021-22 to $38,908,402 in 2022-23. o Deferred outflows increased $841,758 from $1,142,007 in 2021-22 and $1,983,765 in 2022-
23. • Total liabilities for business-type activities balance increased $407,306 from $18,829,898 in 2021- 22 to $19,237,204 in 2022-23.
o Current liabilities balance decreased $1,904,020.
o Net pension liability increased $1,532,412.
o Net OPEB liabilities increased $90,948 from $0 in 2021-22 to $90,948 in 2022-23 o Long-term liabilities balance increased $687,966.
• Deferred inflows decreased $737,894 from $1,763,918 in 2021-22 to $1,026,024 in 2022-23.
Overview of the Financial Statements:
The discussion and analysis are intended to serve as an introduction to the City of Yreka’s basic financial statements. The City of Yreka’s basic financial statements comprise of three components: 1) governmentwide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report contains other supplementary information in addition to the basic financial statements.
Government-Wide Financial Statements:
The government-wide financial statements are designed to provide readers with a broad overview of the City of Yreka’s finances in a manner like a private-sector business. The Statement of Net Position presents information on all of the City of Yreka’s assets and liabilities, with the difference between the two reported as the net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Yreka is improving or deteriorating. The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying events giving rise to the changes occur, regardless of the timing of related cash flows. Revenues and expenses are reported in this statement. For some items, this will only result in cash flows in future fiscal periods; an example would be the reporting for capital leases.
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City of Yreka
Management’s Discussion and Analysis
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The government-wide financial statements distinguish functions of the City of Yreka that are principally supported by taxes, intergovernmental revenues and grants (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (businesstype activities).
The governmental activities of the City of Yreka include general government, public safety, recreation and culture, public works, and planning and community development.
The business-type activities of the City of Yreka include water and sewer operations.
The government-wide financial statements can be found on pages 24 through 26 of this report.
Fund Financial Statements:
A fund is a grouping of related accounts 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. All City funds 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, governmental fund financial statements focus on near-term cash flows and ending fund balances available at the end of the fiscal year.
Balance Sheet and the Reconciliation of Total Governmental Fund Balance to the Statement of Net Position - Governmental Activities/Governmental Funds:
fiscal year 2022-2023, the differences are attributable to:
(1) the recognition of capital assets,
(2) the recognition of long-term assets that are not available to pay for current period expenditures, (3) the deferred outflows of resources related to pension and other post-employment benefits, (4) the deferred inflows of resources related to pension and other post-employment benefits, (5) and that certain liabilities are not due and payable in the current period and therefore are not reported in the government funds.
The analysis of these two statements helps the reader understand the long-term impact of the City’s capital expenditures and financing decisions.
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City of Yreka
Management’s Discussion and Analysis
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Reconciliation of the Statement of Revenues, Expenditures and Changes in Funds Balance to the Statement of Activities - Governmental Funds:
net position of governmental activities. In 2022-2023, the differences are attributable to:
(1) change in capital outlay net of depreciation,
(2) change in long-term debt net of repayments,
(3) change in unavailable revenues
(4) change in deferred inflows and outflows, and
(5) change in other post-employment benefits, compensated absences, and pension obligations, (6) net cost arising from the disposal of capital assets.
The major funds within governmental funds include the General Fund, Special Revenue Fund, Special Grants Fund, and Streets and Roads Fund. The major governmental funds are presented in (1) the governmental fund balance sheet, (2) the governmental fund Statement of Revenues, Expenditures and Changes in Fund Balances for the governmental funds, and (3) the reconciliation of the Statement of Revenues, Expenditures and Changes in Funds Balance to the Statement of Activities Governmental Funds, found on Pages 27 through 30 of this report.
The City of Yreka normally adopts a biannual appropriated budget for each of its governmental funds. A budgetary comparison statement for the governmental funds demonstrates compliance with the budget and is located on pages 75 through 78 of this report.
Proprietary Funds:
The City of Yreka maintains two different types of proprietary funds for its business-type activities. These are also referred to as Enterprise Funds and are used to report the same functions presented as businesstype activities in the government-wide financial statements. The City of Yreka uses these funds to account for its water and sewer operations. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water and sewer funds, each of which is considered a major fund. The basic proprietary fund financial statements can be found on pages 31 through 35 of this report.
Fiduciary Funds:
Fiduciary funds are used to account for resources held for the benefit of parties outside the government. A fiduciary fund represents an agency fund, which is custodial in nature (assets equal liabilities) and does not involve measurement of results of operation. The City’s only agency fund accounts are for the nonadjudicated cash seizures arising from activities of the Siskiyou Unified Major Investigations Team, (SUMIT), page 36 through 37 of this report.
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City of Yreka
Management’s Discussion and Analysis
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Notes to the Financial Statements:
The notes provide additional information that is essential in understanding the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 38 through 68 of this report.
Other Supplemental Information:
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information that found on pages 69 through 78 of this report.
Financial Analysis of the City as a Whole:
Government-Wide Financial Analysis:
As noted earlier, the net position may serve over time as a useful indicator of a government’s financial position. The City of Yreka’s net position was $30,619,436 for governmental activities and $33,956,347 for business type activities, a total of $64,575,783, at the close of fiscal year 2022-2023.
City of Yreka – Changes in Net Position
The largest portion of the City’s net position reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment as well as infrastructure assets such as roads, bridges, water and sewer systems), less any related debt used to acquire those assets that is still outstanding. The City of Yreka uses these capital assets to provide services to its citizens. Consequently, these assets are generally not available for future spending. Although the City of Yreka’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Total Net Position for:
Governmental
Activities
Business-Type
Activities Total
Fiscal Year 2021-2022 $ 30,274,473 $ 29,303,454 $ 59,577,927 Fiscal Year 2022-2023 30,619,436 33,956,347 64,575,783
Increase or (Decrease) in Net Position $ 344,963 $ 4,652,893 $ 4,997,856 Yreka City Council Agenda
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City of Yreka
Management’s Discussion and Analysis
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City of Yreka – Governmental Activities Net Position
The schedule below displays a year over year comparative summary of the City’s governmental activities net position, previously discussed in the financial highlights:
City of Yreka - Net Position
Governmental Activities
Increase/
(Decrease)
Percentage
Change
2021-2022 2022-2023
2021-2022 as
the base year
Current assets and other assets $ 18,223,131 $ 19,713,480 $ 1,490,349 8.2% Restricted assets 638,129 618,681 (19,448) -3.0%
Net OPEB assets 212,944 - (212,944) -100.0%
Non current assets 23,376,842 22,920,267 (456,575) -2.0% Total Assets 42,451,046 43,252,428 801,382 1.9%
Deferred Outflows 2,841,666 6,273,587 3,431,921 120.8%
Total Deferred Outflows 2,841,666 6,273,587 3,431,921 120.8% Current liabilities 1,732,723 1,507,788 (224,935) -13.0% Net pension liability 4,599,171 10,852,496 6,253,325 136.0% Net OPEB liability - 154,857 154,857 100.0%
Long-term liabilities 4,519,262 4,390,187 (129,075) -2.9% Total Liabilities 10,851,156 16,905,328 6,054,172 55.8% Deferred Inflows 4,167,083 2,001,251 (2,165,832) -52.0% Total Deferred Inflows 4,167,083 2,001,251 (2,165,832) -52.0% Net position:
Net investment in capital assets 20,427,255 20,045,245 (382,010) -1.9% Restricted 6,839,029 7,037,620 198,591 2.9%
Unrestricted 3,008,189 3,536,571 528,382 17.6%
Total Net Position $ 30,274,473 $ 30,619,436 $ 344,963 1.1% Governmental Activities
Yreka City Council Agenda
April 16, 2024
City of Yreka
Management’s Discussion and Analysis
-11-
City of Yreka – Business-Type Activities Net Position
The schedule below displays a year over year comparative summary of the City’s business-type activities net position, previously discussed in the financial highlights:
City of Yreka - Net Position BusinessType Activities
Increase/
(Decrease)
Percentage
Change
2021-2022 2022-2023
2021-2022 as
the base year
Current assets and other assets $ 13,026,680 $ 12,777,408 $ (249,272) -1.9% Restricted assets 550,000 550,000 - 0.0%
Net OPEB assets 119,782 - (119,782) -100.0%
Non current assets 35,058,801 38,908,402 3,849,601 11.0% Total Assets 48,755,263 52,235,810 3,480,547 7.1%
Deferred Outflows 1,142,007 1,983,765 841,758 73.7%
Total Deferred Outflows 1,142,007 1,983,765 841,758 73.7% Current liabilities 2,291,880 387,860 (1,904,020) -83.1% Net pension liability 1,614,881 3,147,293 1,532,412 94.9% Net OPEB liability - 90,948 90,948 100.0%
Long-term liabilities 14,923,137 15,611,103 687,966 4.6% Total Liabilities 18,829,898 19,237,204 407,306 2.2%
Deferred Inflows 1,763,918 1,026,024 (737,894) -41.8%
Total Deferred Inflows 1,763,918 1,026,024 (737,894) -41.8% Net position:
Net investment in capital assets 20,193,828 23,302,309 3,108,481 15.4% Restricted 550,000 550,000 - 0.0%
Unrestricted 8,559,626 10,104,038 1,544,412 18.0%
Total Net Position $ 29,303,454 $ 33,956,347 $ 4,652,893 15.9% Business-Type Activities
Yreka City Council Agenda
April 16, 2024
City of Yreka
Management’s Discussion and Analysis
-12-
Comparison of Government Wide Revenues:
Total primary government revenue increased $5,317,207 from $17,921,172 in 2021-22 to $23,238,379 in 2022-23.
2021-2022 2022-2023
Year over
Year Change
Governmental Activities:
Program Revenue
Charges for services $ 1,352,805 $ 986,591 $ (366,214)
Operating grants and contributions 2,172,826 1,926,955 (245,871) Capital grants and contributions 157,089 432,412 275,323 Total Program Revenue 3,682,720 3,345,958 (336,762)
General Revenue
Taxes:
Property 1,969,332 2,140,940 171,608
Sales and use 4,294,849 4,451,192 156,343
Transient occupancy taxes 1,264,820 1,118,525 (146,295) Franchise taxes 268,153 314,153 46,000
Interest and investment earnings (66,005) 287,160 353,165 Miscellaneous 2,248 203,136 200,888
Gain (loss) on disposal of
capital assets 232,024 (6,732) (238,756)
Transfers (207,304) (20,590) 186,714
Total General Revenues and Transfers 7,758,117 8,487,784 729,667 Total Governmental Activities 11,440,837 11,833,742 392,905 Business-Type Activities:
Program Revenue
Charges for services 5,943,306 6,180,933 237,627
Operating grants and contributions 501,570 4,864,029 4,362,459 Total Program Revenue 6,444,876 11,044,962 4,600,086
General Revenue
Interest and investment earnings (171,845) 338,779 510,624 Miscellaneous revenue - 306 306
Transfers 207,304 20,590 (186,714)
Total General Revenues and Transfers 35,459 359,675 324,216 Total Business-Type Activities 6,480,335 11,404,637 4,924,302 Total Primary Government $ 17,921,172 $ 23,238,379 $ 5,317,207 Yreka City Council Agenda
April 16, 2024
City of Yreka
Management’s Discussion and Analysis
-13-
Governmental Activities
Governmental activities program revenue decreased $336,762. The decrease of $366,214 charges for fees and services (development impact fee revenue) and $245,871 operating grants and contributions (reimbursement mutual aid response for public safety). Capital grants increased by $275,323 reflective of one-time revenue.
Governmental activities general revenues increased $729,667. • Sales tax increased $156,343 from the previous earnings in 2021-22, increased construction projects in the City has led to additional construction workers doing more purchasing. • Investment earnings increased $353,165 primarily due to change in portfolio valuation for unrealized losses due to higher rates on CD’s.
• Net transfers out decreased by $186,714 in 2022-2023 due to not having one-time development impact fees transfers to the enterprise funds.
Business-Type Activities
Business-type activities program revenue increased $4,600,086. Charges for services increased $237,627, due to schedule rate increases. Revenue from capital grants increased $4,362,459.
Business-type activities general revenue increased $324,216. In 2022-23 market rates increased causing $510,624 mark to market valuation gain.
Comparison of Government Wide Program Expenses:
2021-2022 2022-2023
Year over
Year Change
Governmental Activities:
Program Expense
General government $ 1,417,555 $ 1,421,168 $ 3,613
Public safety 4,480,738 5,900,294 1,419,556
Public ways and facilities 1,647,485 2,132,146 484,661
Culture and recreation 652,874 735,290 82,416
Community development 700,772 1,132,463 431,691
Interest on long-term debt 174,997 167,418 (7,579)
Total Governmental Activities 9,074,421 11,488,779 2,414,358 Business-Type Activities:
Program Expense
Sewer 2,856,529 2,969,264 112,735
Water 3,196,852 3,782,480 585,628
Total Business-Type Activities 6,053,381 6,751,744 698,363 Total Primary Government $ 15,127,802 $ 18,240,523 $ 3,112,721 Yreka City Council Agenda
April 16, 2024
City of Yreka
Management’s Discussion and Analysis
-14-
Primary government expenses increased $3,112,721 from $15,127,802 in 2021-22 to $18,240,523 in 2022-
23. Functional expenses for governmental activities increased $2,414,358 from $9,074,421 in 2021-22 to $11,488,779 in 2022-23.
Government wide adjustments include changes in pension valuation, other post-employment benefits, compensated absences, debt-servicing interest and capitalization and amortization of capital assets. Detail changes in maintenance and operating expenses are detailed in the governmental fund section of this report. • General governmental expense increased $3,613.
• Public safety increased $1,419,556, primarily due to significant increases in pension liability, workers’ compensation and operating expenses. Specialized attorneys were added to assist with code enforcement issues.
• Public ways and facilities expenses increased $484,661. • Culture and recreation expense increased $82,416, primarily due to addition of parks employees. • Community development expense increased $431,691, due to significant increase to professional and contractual services in connection with the update of the City’s general plan. • Interest on long-term debt decreased $7,579.
Functional expenses for business-type activities increased $698,363 from $6,053,381 in 2021-22 to $6,751,744 in 2022-23.
• Sewer program expense increased $112,735.
• Water program expense increased $585,628.
Financial Analysis of the City’s Funds:
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental Funds:
The focus of the City of Yreka’s governmental funds is to provide information on near-term cash and available ending balances and reserves for operations. Such information is useful in assessing the City of Yreka’s financing requirements. Fund balances serve as a useful measure of a government’s net capital available for spending at the end of the fiscal year. More detailed information on the City’s governmental fund balances can be found on pages 56 to 57 of this report.
Yreka City Council Agenda
April 16, 2024
City of Yreka
Management’s Discussion and Analysis
-15-
The General Fund is the chief operating fund of the City of Yreka, and at the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $18,306,950. The following describes the fund balances designations:
Nonspendable: The nonspendable governmental fund balances for the City total $185,054 and represent medium and long-term loans to residents and businesses. These loans arise from housing and economic development grant lending programs and from City-issued promissory notes due to the sale of real City property.
Restricted: The restricted governmental fund balances for the City total $5,098,266. Of the $965,319 General Fund balance, $618,681 is reserved for capital outlays and represents the Crandall and Stewart specified donated funds. The City has expenditure control restricted to special capital outlays pursuant to donor wills. Restricted balances in special grant funds includes program income, generated from the City’s residential and business lending, that is restricted by the grantor in re-use. Special revenue funds have a restricted fund balance from voter-approved parcel tax assessment for fire protective services. Special revenue funds capital improvement reserves are from developer fees and are restricted to planned improvements. Street and road restricted balances are from statewide fuel (highway users tax accounts, or HUTA), restricted sales taxes (local transportation funds), and transfers in from the General Fund (restricted to transit, road and street construction, maintenance, and improvements).
Committed: The committed governmental fund balances for the City are zero.
Assigned: The restricted fund balances for the City are $4,401,812. The City has assigned these balances to cover capital improvements, planning and development, budget stabilization, other post employments benefits, grant contingencies and general liability reserves.
Unassigned: The City has $8,621,818 of unassigned governmental fund balances.
Proprietary Funds:
The City of Yreka’s proprietary funds, also referred to as business-type activities or Enterprise Funds, provide the same type of information found in the government-wide financial statements but in more detail.
Total net position of the water and sewer funds at the end of the year amounted to $33,956,347, and the unrestricted net position was $10,040,738. In the Statement on Cash Flows, pages 34 to 35, the net increase in cash shows a net decrease of $1,606,187. The sewer cash balance decreased $587,665. The water utility proprietary funds cash balance decreased $1,018,522. Overall, decreases to cash balances deplete reserves for future scheduled capital outlay projects, whereas decreases to cash reflect planned capital outlay or debt repayment.
Agency Funds:
Agency funds consist of fiduciary funds that are used to account for assets held in a trustee or agent capacity for others. The City holds non-adjudicated seizure money on behalf of the SUMIT, a state recognized locally operated major crimes investigation team task force. In 2019, the SUMIT task force dissolved.
However, the funds on deposit represent seizure funds that have not been adjudicated.
Yreka City Council Agenda
April 16, 2024
City of Yreka
Management’s Discussion and Analysis
-16-
General Fund Budgetary Highlights:
Below is a table comparing the differences between the original budget and the final amended budget for revenue and expenses in the General Fund, Special Grant Fund, Special Revenue and Streets and Roads Fund. More information is available on pages 75 through 78 of this report. (Unfavorable) Variance With
General Fund Original Final Actual Final to Org. Actual to Final Revenue $ 7,250,343 $ 7,699,959 $ 9,793,987 $ 449,616 $ 2,094,028 Expense 7,043,673 7,193,609 7,719,031 (149,936) (525,422) Excess (deficiency) of revenue over (under) expenses 206,670 506,350 2,074,956 299,680 1,568,606 Other Financing Sources and (Uses) (589,867) (589,867) (730,784) - (140,917) Net Change in Fund Balance $ (383,197) $ (83,517) $ 1,344,172 $ 299,680 $ 1,427,689 (Unfavorable) Variance With
Special Grants Original Final Actual Final to Org. Actual to Final Revenue $ 2,249,000 $ 2,249,000 $ 381,249 $ - $ (1,867,751) Expense 3,049,750 3,049,750 1,016,422 - 2,033,328
Excess (deficiency) of revenue over (under) expenses (800,750) (800,750) (635,173) - 165,577 Other Financing Sources and (Uses) 750,000 750,000 313,535 - (436,465) Net Change in Fund Balance $ (50,750) $ (50,750) $ (321,638) $ - $ (270,888) (Unfavorable) Variance With
Special Revenue Original Final Actual Final to Org. Actual to Final Revenue $ 563,500 $ 563,500 $ 645,929 $ - $ 82,429
Expense 345,726 345,726 303,835 - 41,891
Excess (deficiency) of revenue over (under) expenses 217,774 217,774 342,094 - 124,320 Other Financing Sources and (Uses) (9,500) (9,500) (25,285) - (15,785) Net Change in Fund Balance $ 208,274 $ 208,274 $ 316,809 $ - $ 108,535 (Unfavorable) Variance With
Streets and Roads Original Final Actual Final to Org. Actual to Final Revenue $ 633,000 $ 633,000 $ 1,099,651 $ - $ 466,651
Expense 1,222,867 1,222,867 1,273,271 - (50,404)
Excess (deficiency) of revenue over (under) expenses (589,867) (589,867) (173,620) - 416,247 Other Financing Sources and (Uses) 589,867 589,867 589,865 - (2) Net Change in Fund Balance $ - $ - $ 416,245 $ - $ 416,245 Schedule of Revenues and Expenditures – Budget to Actual 2022-2023 Yreka City Council Agenda
April 16, 2024
City of Yreka
Management’s Discussion and Analysis
-17-
General Fund:
• Total revenues were $7,250,343 in the original budget, $7,699,959 in the final budget and $9,793,987 for actuals.
• The revenue increase of $449,616 in the final budget to adopted budget is primarily due to increases in intergovernmental revenue.
• The revenue increase of $2,094,028 in the actual to final budget is primarily due to increases in transit occupancy taxes, “lodging tax” of $288,525. Property tax revenue and sales tax increased $274,314 and $851,192 respectively. Intergovernmental revenue increased in the actual to final budget $252,826, where $30,633 is federal reimbursement for Coronavirus Relief reimbursement from 2021. Additionally, the Police department engaged in two new agreements, the school resource officer and the homeless liaison officer.
• Total expenses were $7,043,673 in the original budget, $7,193,609 in the final budget and $7,719,031 for actuals.
• The expense increased by $149,936 in the final budget to adopted budget, which included an increase for police of $41,936 due to the addition of the School Resource Officer. City administration increased $67,500 in part due to increase in wages associated with the hiring of a full time Clerk. Final budget was increased for community promotions of $26,500 due to Council’s approval of providing financial support to the Night of Lights event and Gold Rush Days.
• Other Financing Sources and (Uses) were ($589,867) in the original budget, ($589,867) in the final budget and ($730,784) for actuals.
• The change in the General Fund balance was ($383,197) in the original budget, ($83,517) in the final budget and $1,344,172 for actuals. The increase in revenues mainly attributable to sales tax.
Special Grant Fund:
• Special grant funds were not a major special revenue fund in fiscal year 2022-2023.
Special Revenue Fund:
• Revenues were $563,500 in the original budget, $563,500 in the final budget and $645,929 for actuals. • Expenses were $345,726 in the original budget and $345,726 in the final budget, and $303,835 for actuals.
• Other Financing Sources and (Uses) were $(9,500) in the original budget, ($9,500) in the final budget and ($25,285) for actuals.
Yreka City Council Agenda
April 16, 2024
City of Yreka
Management’s Discussion and Analysis
-18-
Streets and Roads Fund:
• Revenues were $633,000 in the original budget, $633,000 in the final budget and $1,099,651 for actuals.
• Expenses were $1,222,867 in the original budget, $1,222,867 in the final budget and $1,273,271 for actuals.
• Other financing sources were $589,867 in the original budget and $589,867 in the final budget and actuals that reflects a transfer in of $589,865 from the general operating fund.
Capital Assets and Debt Administration
Changes in Capital Assets
Balance
June 30, 2022 Additions Retirements
Transfers/
Adjustments
Balance
June 30, 2023
Governmental Activities:
Capital assets not being depreciated;
Land $ 2,204,965 $ - $ - $ - $ 2,204,965
Construction in Progress 1,404,382 702,399 (85,967) - 2,020,814 Total Capital Assets, Not Being Depreciated 3,609,347 702,399 (85,967) - 4,225,779 Capital assets being depreciated;
Building and Structures 11,764,744 - - - 11,764,744
Machinery and Equipment 5,896,736 45,614 - - 5,942,350
Subscription-based information technology
arrangements - 88,686 - - 88,686
Infrastructure 34,131,267 - - - 34,131,267
Governmental Activities Capital Assets 55,402,094 836,699 (85,967) 56,152,826 - Less Accumulated Depreciation (32,025,252) (1,207,307) - (33,232,559) - Governmental Activities Capital Assets, Net 23,376,842 (370,608) (85,967) 22,920,267 - Business-Type Activities:
Capital assets not being depreciated;
Land 374,428 - - 374,428 -
Construction in Progress 11,364,445 4,887,673 (6,241,245) - 10,010,873 Total Capital Assets, Not Being Depreciated 11,738,873 4,887,673 (6,241,245) - 10,385,301 Capital assets being depreciated;
Building and Structures 12,493,673 - - 12,493,673 -
Machinery and Equipment 8,558,796 231,748 - 8,790,544 - Subscription-based information technology
arrangements - 29,898 - 29,898 -
Infrastructure 29,429,842 - 6,241,245 - 35,671,087
Total Business Activities Capital Assets 62,221,184 5,149,319 - 67,370,503 - Less Accumulated Depreciation (27,162,383) (1,299,718) - (28,462,101) - Business-Type Capital Assets, Net 35,058,801 3,849,601 - 38,908,402 - Total Capital Assets, Net $ 58,435,643 $ 3,478,993 (85,967)$ -$ 61,828,669 $ Yreka City Council Agenda
April 16, 2024
City of Yreka
Management’s Discussion and Analysis
-19-
The City of Yreka’s investment in capital assets for its governmental and business type activities as of June 30, 2023, amounts to $61,828,669 (net of accumulated depreciation). Non-depreciable capital assets are land and land right of ways, used primarily for streets and construction that is in progress. Depreciable assets include buildings and structures, equipment, and vehicles. Capital assets for infrastructure include streets and sidewalks, curbs and gutters, drainage systems, bridges, and lighting systems.
The City has numerous master plan studies where engineers have identified the capital improvement projects needed within the next five to ten years for the City’s infrastructure assets of streets, storm water drainage, water and sewer utilities. To that end, the City remains focused in its efforts to deal with ways to fund infrastructure improvements.
Capital grants remain a primary source of funding for capital outlay to the City’s aging infrastructure. The City’s streets and roads need routine maintenance and rehabilitation. Fuel or gas taxes for streets and roads do not provide an adequate revenue stream for repairs, and the City has relied on competitive grants, sales tax revenues and street reserves for road improvements.
The City plans to improve the safety and reliability of its water and sewer systems. The City has entered into grant and lending agreements to upgrade these systems. Planned utility rate increases from 2023 to 2028, seek to (a) adequately fund these utilities, (b) demonstrate the City’s ability to debt service its loan obligations, and (c) maintain an adequate level of reserves.
Major capital asset events during the year are listed as follows:
Governmental Activities:
• Land - The City sold a small parcel of land near Greenhorn Park. • Transfers – There were no transfers in the current year as projects not completed. • Construction in Progress - At the end of 2022-2023 CIP totals $2,204,965. o Of the outstanding construction in progress, $1,481,811 relates to the Flood Hazard Reduction Grant for flood corridor development project along Yreka Creek. • Machinery and Equipment - The City acquired a loader for use in street projects, water and sewer projects, the streets portion was $45,614.
Business Type Activities:
• Construction in Progress - Additions to construction in progress projects were $4,887,673 for water distributions and sewer collection systems capital projects, primarily relating to water $2,445,299 and sewer $394,904 utility replacement projects underneath California State Highway 3. An additional construction in progress of $878,414 for E. Lennox Water construction, $852,001 for sewer collection improvements system design, both pursuant to Prop. 1 State of California grant projects. Additionally, improvements to the wastewater treatment plant pursuant to Clean Water State Revolving Fund totaling $201,291.
• Transfers – the completion of the highway 3 replacement project in the amount of $6,241,245. • Machinery and Equipment - The City acquired equipment including a loader and a vehicle.
Yreka City Council Agenda
April 16, 2024
City of Yreka
Management’s Discussion and Analysis
-20-
Changes in Long-term Liabilities, Long-term Debt and Compensated Absences:
Changes in Long-term Liabilities
Long-Term Liabilities
June 30, 2022 Additions Reductions June 30, 2023
Current
Portion
Governmental Activities:
Compensated Absences $ 243,817 $ 297,277 $ 248,295 $ 292,799 $ 292,799 Capital Lease 352,587 - 86,280 266,307 87,514
Loans Payable - Governmental
Agencies 1,325,858 - 103,492 1,222,366 109,073
Certificates of participation -
USDA Rural Development 2,597,000 - 35,000 2,562,000 37,000 Subscription-based information
technology arrangements - 88,686 41,971 46,715 22,897
Governmental Activities 4,519,262 385,963 515,038 4,390,187 549,283 Business-Type Activities:
Compensated Absences 58,164 100,242 90,096 68,310 68,310 Capital Lease 286,400 - 82,171 204,229 83,529
Loans Payable 4,632,573 967,427 5,600,000 - -
Certificates of participation -
USDA Rural Development 9,946,000 5,600,000 227,000 15,319,000 372,000 Subscription-based information
tachnology arrangements - 29,898 10,334 19,564 9,602
Business-Type Activities 14,923,137 6,697,567 6,009,601 15,611,103 533,441 Total Long-Term Liabilities $ 19,442,399 $ 7,083,530 $ 6,524,639 $ 20,001,290 $1,082,724 Yreka City Council Agenda
April 16, 2024
City of Yreka
Management’s Discussion and Analysis
-21-
North Street Water Main replacement, August 29,
2011
At the end of the 2022-2023, total longterm liabilities were $20,001,290. That includes $1,082,724 for the current
portion of long-term debt and
compensated absences. The City’s
balances for compensated absences
increased by $48,982 for governmental
activities and increased by $10,146 for
business-type activities.
Detailed information on lenders, rates and maturities for long-term debt are found on pages 52 through 55 of this report.
Next Year’s Budgets and Rates:
Budget Highlights for 2023-2024:
Below are highlights for fiscal year 2023-24 from the City’s biannual budget, adopted by the City Council on August 2, 2023. The budget can be found on the City’s website, http://ci.yreka.ca.us .
City of Yreka
2023-24 Adopted Budget
Adopted
Budgeted
Revenue
Adopted
Budgeted
Expense
Excess of
Revenue over
Expense
Total General Fund $ 10,352,723 $ 10,707,289 $ (354,566) Total Special Rev. Fund 614,000 455,226 $158,774
Total Streets and Roads 1,451,106 1,442,429 $8,677
Special Grant Fund 4,810,197 5,872,650 ($1,062,453)
17,228,026 18,477,594 (1,249,568)
Sewer Fund 10,746,318 11,814,900 (1,068,582)
Water Fund 9,653,783 7,469,857 2,183,926
Total Business-Type Funds 20,400,101 19,284,757 1,115,344 All Funds Combined $ 37,628,127 $ 37,762,351 $ (134,224) Total Governmental Activity Funds
Yreka City Council Agenda
April 16, 2024
City of Yreka
Management’s Discussion and Analysis
-22-
For Governmental Activities, the City projects a $1,249,568 decrease in fund balances. Reserves have been accumulated in prior years for planned system capital improvements within the Special Grant fund for City Hall accessibility building improvements.
For Business-Type Activities, the City anticipates a $1,115,344 increase to fund balance reserves. The increase in the business type funds reflects reimbursement of capital projects through grants that are still waiting reimbursement.
General Fund Revenue Projections:
General Fund - Fiscal Year Mainstream Revenue Comparison Actual
20-21
Actual
21-22
Actual
22-23
Adopted
Budget
23-24
Property Tax (secured & unsec. roll) $1,186,188 $ 1,268,795 $ 1,395,030 $ 1,383,425 Property Tax arising from MVLF shift (1) 654,120 691,566 737,934 740,000 Transient Lodging 1,201,139 1,264,820 1,118,525 1,200,000 Sales Tax (2) 4,422,757 4,294,850 4,451,192 4,363,000
Franchises 274,117 268,153 314,153 300,000
Licenses and Permits 230,172 275,499 313,461 260,700
Fines and Forfeitures 2,292 6,450 (4,387) 250
Use of Money and Property 3,223 90,383 193,670 160,800
Intergovernmental 605,484 971,434 1,050,859 1,099,617
User Fees and Charges 50,505 76,534 58,003 65,150
Administrative Cost Recovery (3) 456,184 526,691 368,391 573,782 Other Revenues 306,529 364,680 15,180 206,000
Subtotal General Fund Revenue $9,392,710 $10,099,855 $10,012,011 $10,352,724 Financial Statements, but represented as a revenue for budgeting purposes. (2) Administrative Cost Recovery is netted against the departmental administrative and general governmental expense in the (1) Prop tax arising from the MVLF shift.
Yreka City Council Agenda
April 16, 2024
City of Yreka
Management’s Discussion and Analysis
-23-
Horizon Issues for 2023-2024:
1. Supply chain constraints arising from global trade impacts relating to construction projects pending and or under contract, for example availability of water and sewer mainline pipe.
2. Rental market and inventory of available housing is restricted both from impacts relating to wildfires displacing residents in Siskiyou County and the relocation of urban dwellers to the area due to affordability, remote work opportunities and lifestyle decisions.
3. Growth in the City’s homeless population.
4. Impacts to storefronts, unemployment, and economic impacts to businesses within the areas arising from the highway 3 construction.
5. Retention and recruitment of human talent and increased demand for public safety services.
6. Revenue development and pension funding.
7. Development of the City’s twenty-year general plan update.
Requests for Information:
This financial report is designed to provide to all interested readers a general overview of the City of Yreka’s finances. Questions concerning any of the information provided in this report, or requests for additional financial information, can be directed to the City’s Finance Director, 701 Fourth Street, Yreka, CA 96097, website www.ci.yreka.ca.us.
Yreka City Council Agenda
April 16, 2024
Basic Financial Statements
• Government-Wide Financial Statements
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Yreka City Council Agenda
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CITY OF YREKA
Statement of Net Position
June 30, 2023
Governmental Business-Type
Activities Activities Totals
ASSETS
Cash and investments $ 17,590,500 $ 10,323,704 $ 27,914,204 Receivables:
Accounts 149,494 641,324 790,818
Intergovernmental 524,474 1,730,882 2,255,356
Interest 138,561 81,498 220,059
Taxes 1,125,397 - 1,125,397
Restricted cash and investments 618,681 550,000 1,168,681 Loans receivable, net 164,222 - 164,222
Inventory 20,832 - 20,832
Capital assets:
Non-depreciable 4,225,779 10,385,301 14,611,080
Depreciable, net 18,694,488 28,523,101 47,217,589
Total capital assets 22,920,267 38,908,402 61,828,669
Total Assets 43,252,428 52,235,810 95,488,238
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension adjustments 5,968,687 1,750,371 7,719,058 Deferred OPEB adjustments 304,900 233,394 538,294
Total Deferred Outflows of Resources 6,273,587 1,983,765 8,257,352
LIABILITIES
Accounts payable 209,686 239,116 448,802
Retention payable - 27,115 27,115
Salaries and benefits payable 186,526 - 186,526
Interest payable 22,724 121,629 144,353
Deposits payable 60,960 - 60,960
Unearned revenue 1,027,892 - 1,027,892
Long-term liabilities:
Due within one year 549,283 533,441 1,082,724
Due in more than one year 3,840,904 15,077,662 18,918,566 Net pension liability 10,852,496 3,147,293 13,999,789
Net OPEB liability 154,857 90,948 245,805
Total Liabilities 16,905,328 19,237,204 36,142,532
DEFERRED INFLOWS OF RESOURCES
Deferred pension adjustments 1,838,755 876,263 2,715,018 Deferred OPEB adjustments 162,496 149,761 312,257
Total Deferred Inflows of Resources 2,001,251 1,026,024 3,027,275 The notes to the basic financial statements are an integral part of this statement. -24-
Continued (Page 1 of 2)
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Statement of Net Position
June 30, 2023
Governmental Business-Type
Activities Activities Totals
NET POSITION
Net investment in capital assets 20,045,245 23,302,309 43,347,554 Restricted for:
Public safety 1,723,543 - 1,723,543
Public ways and facilities 1,806,803 - 1,806,803
Culture and recreation 38,439 - 38,439
Community development 1,229,102 - 1,229,102
Capital projects 1,635,087 - 1,635,087
Debt service 604,646 550,000 1,154,646
Unrestricted 3,536,571 10,104,038 13,640,609
Total Net Position $ 30,619,436 $ 33,956,347 $ 64,575,783 The notes to the basic financial statements are an integral part of this statement. -25-
Continued (Page 2 of 2)
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Statement of Activities
For the Year Ended June 30, 2023
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs: Expenses Services Contributions Contributions Governmental activities:
General government $ 1,421,168 $ 380,580 $ 480,249 $ -
Public safety 5,900,294 387,054 560,586 -
Public ways and facilities 2,132,146 15,307 884,072 432,412 Culture and recreation 735,290 15,905 - -
Community development 1,132,463 187,745 2,048 -
Interest on long-term debt 167,418 - - -
Total Governmental Activities 11,488,779 986,591 1,926,955 432,412 Business-type activities:
Sewer 2,969,264 2,960,128 - 852,000
Water 3,782,480 3,220,805 - 4,012,029
Total Business-Type Activities 6,751,744 6,180,933 - 4,864,029 Total $ 18,240,523 $ 7,167,524 $ 1,926,955 $ 5,296,441
General Revenues:
Taxes:
Property taxes
Sales and use taxes
Transient occupancy taxes
Franchise taxes
Interest and investment earnings
Miscellaneous
Gain on sale of capital assets
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning
Net Position - Ending
The notes to the basic financial statements are an integral part of this statement. -26-
Yreka City Council Agenda
April 16, 2024
Net (Expense) Revenue and
Changes in Net Position
Governmental Business-Type
Activities Activities Totals
$ (560,339) $ - $ (560,339)
(4,952,654) - (4,952,654)
(800,355) - (800,355)
(719,385) - (719,385)
(942,670) - (942,670)
(167,418) - (167,418)
(8,142,821) - (8,142,821)
- 842,864 842,864
- 3,450,354 3,450,354
- 4,293,218 4,293,218
(8,142,821) 4,293,218 (3,849,603)
2,140,940 - 2,140,940
4,451,192 - 4,451,192
1,118,525 - 1,118,525
314,153 - 314,153
287,160 338,779 625,939
203,136 306 203,442
(6,732) - (6,732)
(20,590) 20,590 -
8,487,784 359,675 8,847,459
344,963 4,652,893 4,997,856
30,274,473 29,303,454 59,577,927
$ 30,619,436 $ 33,956,347 $ 64,575,783
The notes to the basic financial statements are an integral part of this statement. -26-
Yreka City Council Agenda
April 16, 2024
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Yreka City Council Agenda
April 16, 2024
Basic Financial Statements
• Fund Financial Statements
Yreka City Council Agenda
April 16, 2024
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Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Balance Sheet
Governmental Funds
June 30, 2023
Streets Special Special
General and Roads Revenue Grants Totals
ASSETS
Cash and investments $ 11,597,648 $ 1,354,092 $ 1,535,012 $ 3,103,748 $ 17,590,500 Receivables:
Accounts 99,409 - 48,143 1,942 149,494
Intergovernmental 33,268 33,747 - 457,459 524,474
Interest 104,289 10,981 11,280 12,011 138,561
Taxes 1,074,381 51,016 - - 1,125,397
Restricted cash and investments 618,681 - - - 618,681
Loans receivable, net - - - 164,222 164,222
Inventory 20,832 - - - 20,832
Total Assets $ 13,548,508 $ 1,449,836 $ 1,594,435 $ 3,739,382 $ 20,332,161
LIABILITIES
Accounts payable $ 137,807 $ 13,908 $ - $ 57,971 $ 209,686 Salaries and benefits payable 186,526 - - - 186,526
Interest payable 22,724 - - - 22,724
Deposits payable 60,960 - - - 60,960
Unearned revenue 927,892 - - 100,000 1,027,892
Total Liabilities 1,335,909 13,908 - 157,971 1,507,788
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 64,204 8,208 - 445,011 517,423
Total Deferred Inflows of Resources 64,204 8,208 - 445,011 517,423
FUND BALANCES
Nonspendable 20,832 - - 164,222 185,054
Restricted 965,319 1,427,720 1,594,435 1,110,792 5,098,266 Assigned 2,540,426 - - 1,861,386 4,401,812
Unassigned 8,621,818 - - - 8,621,818
Total Fund Balances 12,148,395 1,427,720 1,594,435 3,136,400 18,306,950 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 13,548,508 $ 1,449,836 $ 1,594,435 $ 3,739,382 $ 20,332,161 The notes to the basic financial statements are an integral part of this statement. -27-
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Reconciliation of the Governmental Funds Balance
Sheet to the Government-Wide Statement of
Net Position - Governmental Activities
June 30, 2023
Total Fund Balances - Total Governmental Funds $ 18,306,950 Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not reported in the governmental funds balance sheet. 22,920,267
Other long-term assets are not available to pay for current period expenditures and therefore are reported as unavailable revenue in the governmental funds. 517,423 Deferred outflows of resources related to pension and OPEB are not reported in the governmental funds. 6,273,587 Deferred inflows of resources related to pension and OPEB are not reported in the governmental funds. (2,001,251) Certain liabilities are not due and payable in the current period and therefore are not reported in the governmental funds.
Compensated absences (292,799)
Loans payable (1,222,366)
Certificates of participation (2,562,000)
Capital leases (266,307)
Subscription-based information technology arrangements (46,715) Net pension liability (10,852,496)
Net OPEB liability (154,857)
Net Position of Governmental Activities $ 30,619,436
The notes to the basic financial statements are an integral part of this statement. -28-
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Statement of Revenues, Expenditures and
Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2023
Streets Special Special
General and Roads Revenue Grants Totals
REVENUES
Taxes and assessments $ 8,016,834 $ - $ 331,988 $ - $ 8,348,822 Licenses and permits 313,461 - 32,934 - 346,395
Fines and forfeitures (4,387) 13,457 - - 9,070
Use of money 193,670 26,489 39,872 27,129 287,160
Intergovernmental 1,050,859 1,048,618 - 354,120 2,453,597 Charges for services 58,003 - 241,135 - 299,138
Other revenues 165,547 11,087 - - 176,634
Total Revenues 9,793,987 1,099,651 645,929 381,249 11,920,816
EXPENDITURES
Current:
General government 1,332,940 - (33,466) - 1,299,474
Public safety 4,766,496 - - - 4,766,496
Public ways and facilities 92,004 1,227,658 - 63,082 1,382,744 Culture and recreation 480,135 - - - 480,135
Community development 771,685 - - 341,165 1,112,850
Debt service:
Principal 76,971 - 189,772 - 266,743
Interest and other charges 91,462 - 75,956 - 167,418
Capital outlay 107,338 45,613 71,573 612,175 836,699
Total Expenditures 7,719,031 1,273,271 303,835 1,016,422 10,312,559 Excess of Revenues Over (Under)
Expenditures 2,074,956 (173,620) 342,094 (635,173) 1,608,257
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 79,235 - - - 79,235 Debt proceeds 88,686 - - - 88,686
Transfers in - 589,865 - 313,535 903,400
Transfers out (898,705) - (25,285) - (923,990)
Total Other Financing Sources (Uses) (730,784) 589,865 (25,285) 313,535 147,331 Net Change in Fund Balances 1,344,172 416,245 316,809 (321,638) 1,755,588 Fund Balances - Beginning 10,804,223 1,011,475 1,277,626 3,458,038 16,551,362 Fund Balances - Ending $ 12,148,395 $ 1,427,720 $ 1,594,435 $ 3,136,400 $ 18,306,950 The notes to the basic financial statements are an integral part of this statement. -29-
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Government-Wide Statement of Activities - Governmental Activities For the Year Ended June 30, 2023
Net Change in Fund Balances - Total Governmental Funds $ 1,755,588 Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlay as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.
Expenditures for capital outlay 748,013
Capital outlay related to subscription based information technology arrangements 88,686 Less current year depreciation (1,207,307)
Governmental funds only report the disposal of assets to the extent proceeds are received from the sale.
In the Statement of Activities, a gain or loss is reported for each disposal. This is the net cost of the capital assets disposed. Proceeds from the sale of capital assets were $79,235. (85,967) Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Statement of Net Position. Repayment of principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position.
Principal retirements 266,743
Proceeds related to subscription based information technology arrangements (88,686) Some revenues reported in the Statement of Activities will not be collected for several months after the City's year-end and do not provide current financial resources and therefore are not reported as revenues in the governmental funds.
Change in unavailable revenue (59,752)
Certain changes in deferred outflows and deferred inflows of resources reported in the Statement of Activities relate to long-term liabilities and are not reported in the governmental funds.
Changes in deferred outflows of resources related to pension 3,188,958 Changes in deferred outflows of resources related to OPEB 242,963 Changes in deferred inflows of resources related to pension 2,017,522 Changes in deferred inflows of resources related to OPEB 148,310 Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds.
Change in compensated absences (48,982)
Change in net pension liability (6,253,325)
Change in net OPEB liability/asset (367,801)
Change in Net Position of Governmental Activities $ 344,963 The notes to the basic financial statements are an integral part of this statement. -30-
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April 16, 2024
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Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Statement of Net Position
Proprietary Funds
June 30, 2023
Business-Type Activities - Enterprise Funds
Sewer Water Totals
ASSETS
Current Assets:
Cash and investments $ 5,052,731 $ 5,270,973 $ 10,323,704 Receivables:
Accounts 275,841 365,483 641,324
Intergovernmental 852,000 878,882 1,730,882
Interest 41,070 40,428 81,498
Total Current Assets 6,221,642 6,555,766 12,777,408
Noncurrent Assets:
Restricted cash and investments 250,000 300,000 550,000 Capital assets:
Non-depreciable 1,897,091 8,488,210 10,385,301
Depreciable, net 16,306,771 12,216,330 28,523,101
Total Noncurrent Assets 18,453,862 21,004,540 39,458,402 Total Assets 24,675,504 27,560,306 52,235,810
DEFERRED OUTFLOWS OF RESOURCES
Deferred pension adjustments 722,392 1,027,979 1,750,371 Deferred OPEB adjustments 107,235 126,159 233,394
Total Deferred Outflows of Resources 829,627 1,154,138 1,983,765
LIABILITIES
Current Liabilities:
Accounts payable 144,558 94,558 239,116
Retention payable 21,901 5,214 27,115
Interest payable 60,213 61,416 121,629
Compensated absences 15,537 52,773 68,310
Subscription based information technology agreements 4,801 4,801 9,602 Certificates of participation 230,000 142,000 372,000
Capital leases - 83,529 83,529
Total Current Liabilities 477,010 444,291 921,301
The notes to the basic financial statements are an integral part of this statement. -31-
Continued (Page 1 of 2)
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Statement of Net Position
Proprietary Funds
June 30, 2023
Business-Type Activities - Enterprise Funds
Sewer Water Totals
Noncurrent Liabilities:
Subscription based information technology agreements 4,981 4,981 9,962 Certificates of participation 9,648,000 5,299,000 14,947,000 Capital leases - 120,700 120,700
Net pension liability 1,298,913 1,848,380 3,147,293
Net OPEB asset 41,787 49,161 90,948
Total Noncurrent Liabilities 10,993,681 7,322,222 18,315,903 Total Liabilities 11,470,691 7,766,513 19,237,204
DEFERRED INFLOWS OF RESOURCES
Deferred pension adjustments 361,641 514,622 876,263
Deferred OPEB adjustments 68,809 80,952 149,761
Total Deferred Inflows of Resources 430,450 595,574 1,026,024
NET POSITION
Net investment in capital assets 8,316,080 15,049,529 23,365,609 Restricted for debt service 250,000 300,000 550,000
Unrestricted 5,037,910 5,002,828 10,040,738
Total Net Position $ 13,603,990 $ 20,352,357 $ 33,956,347 The notes to the basic financial statements are an integral part of this statement. -32-
Continued (Page 2 of 2)
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Statement of Revenues, Expenses and
Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2023
Business-Type Activities - Enterprise Funds
Sewer Water Totals
OPERATING REVENUES
Charges for services $ 2,960,128 $ 3,220,805 $ 6,180,933 Other revenues 153 153 306
Total Operating Revenues 2,960,281 3,220,958 6,181,239
OPERATING EXPENSES
Power and water 195,891 255,602 451,493
Treatment 887,222 1,244,166 2,131,388
Sewer collection 385,007 - 385,007
Water distribution - 719,146 719,146
Administration and billing 727,390 701,213 1,428,603
Depreciation 595,343 704,375 1,299,718
Total Operating Expenses 2,790,853 3,624,502 6,415,355
Operating Income (Loss) 169,428 (403,544) (234,116)
NON-OPERATING REVENUES (EXPENSES)
Intergovernmental 852,000 4,012,029 4,864,029
Interest income 160,205 178,574 338,779
Interest expense (178,411) (157,978) (336,389)
Total Non-Operating Revenues (Expenses) 833,794 4,032,625 4,866,419 Income (Loss) Before Transfers 1,003,222 3,629,081 4,632,303 Transfers in 4,623 15,967 20,590
Change in Net Position 1,007,845 3,645,048 4,652,893
Total Net Position - Beginning 12,596,145 16,707,309 29,303,454 Total Net Position - Ending $ 13,603,990 $ 20,352,357 $ 33,956,347 The notes to the basic financial statements are an integral part of this statement. -33-
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April 16, 2024
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Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
Business-Type Activities - Enterprise Funds
Sewer Water Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 2,938,705 $ 3,212,244 $ 6,150,949 Payments to suppliers (1,890,769) (3,346,440) (5,237,209) Payments to employees (738,667) (516,300) (1,254,967)
Net Cash Provided (Used) by Operating Activities 309,269 (650,496) (341,227)
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Intergovernmental revenues received - 3,592,500 3,592,500 Interfund loans received/repaid 67,754 (67,754) -
Transfers from other funds 4,623 15,967 20,590
Net Cash Provided (Used) by Non-Capital
Financing Activities 72,377 3,540,713 3,613,090
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition of capital assets (1,781,692) (3,722,304) (5,503,996) Proceeds from debt 6,582,376 14,949 6,597,325
Principal paid on debt (5,693,167) (226,338) (5,919,505) Interest paid on debt (207,606) (127,951) (335,557)
Net Cash Provided (Used) by Capital and
Related Financing Activities (1,100,089) (4,061,644) (5,161,733)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 130,778 152,905 283,683
Net Cash Provided (Used) by Investing Activities 130,778 152,905 283,683 Net Increase (Decrease) in Cash and Cash Equivalents (587,665) (1,018,522) (1,606,187) Balances - Beginning 5,890,396 6,589,495 12,479,891
.
Balances - Ending $ 5,302,731 $ 5,570,973 $ 10,873,704
The notes to the basic financial statements are an integral part of this statement. -34-
Continued (Page 1 of 2)
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2023
Business-Type Activities - Enterprise Funds
Sewer Water Totals
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
Operating income (loss) $ 169,428 $ (403,544) $ (234,116) Adjustments to reconcile operating income to net cash
provided (used) by operating activities:
Depreciation 595,343 704,375 1,299,718
Decrease (increase) in:
Accounts receivable (21,576) (8,714) (30,290)
Deferred outflows - pension adjustments (223,950) (419,254) (643,204) Deferred outflows - OPEB adjustments (90,783) (107,771) (198,554) Increase (decrease) in:
Accounts payable (422,649) (1,127,526) (1,550,175)
Compensated absences 714 9,432 10,146
Net pension liability 571,900 960,512 1,532,412
Net OPEB liability/asset 98,351 112,379 210,730
Deferred inflows - pension adjustments (353,761) (359,067) (712,828) Deferred inflows - OPEB adjustments (13,748) (11,318) (25,066) Net Cash Provided (Used) by Operating Activities $ 309,269 $ (650,496) $ (341,227) The notes to the basic financial statements are an integral part of this statement. -35-
Continued (Page 2 of 2)
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2023
Custodial
Fund
Court
Nonadjudicated
Seizure Fund
ASSETS
Cash and investments $ 19,221
Total Assets 19,221
LIABILITIES
Accounts payable -
Total Liabilities -
NET POSITION
Restricted for individuals, organizations, or other governments 19,221 Total Net Position $ 19,221
The notes to the basic financial statements are an integral part of this statement. -36-
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2023
Custodial
Fund
Court
Nonadjudicated
Seizure Fund
ADDITIONS
Interest and investment income $ 2
Total Addisions 2
DEDUCTIONS
Distribution of funds held for others -
Total Deductions -
Total Increase (Decrease) in Fiduciary Net Position 2
Total Net Position - Beginning 19,219
Total Net Position - Ending $ 19,221
The notes to the basic financial statements are an integral part of this statement. -37-
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April 16, 2024
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Yreka City Council Agenda
April 16, 2024
Basic Financial Statements
• Notes to Basic Financial Statements
Yreka City Council Agenda
April 16, 2024
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Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-38-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Yreka operates under a Council-Manager form of government and provides the following services: public safety, streets and roads, culture and recreation, public improvements, planning and zoning, general administrative services and water and sewer.
Component Units
Generally accepted accounting principles require government financial statements to include the primary government and its component units. Component units of a governmental entity are legally separate entities for which the primary government is considered to be financially accountable and for which the nature and significance of their relationship with the primary government are such that exclusion would cause the combined financial statements to be misleading. The primary government is considered to be financially accountable if it appoints a majority of an organization’s governing body and is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to or impose specific financial burdens on the primary government.
Based on the application of the criteria set forth by the Governmental Accounting Standards Board, management has determined that there are no component units of the City.
Joint Agencies
The City is a participant in Small Cities Organized Risk Effort (SCORE), the purpose of which is for member cities to share in the administrative costs of providing liability and workers’ compensation insurance. SCORE is composed of 18 member cities and is governed by a board of directors appointed by the member cities. Complete financial information can be obtained from the SCORE offices at 2180 Harvard Street, Suite 460, Sacramento, CA 95815. The City is not financially accountable for this organization and therefore, it is not a component unit under Statement Nos. 14, 39 and 61 of the Governmental Accounting Standards Board.
B. Basis of Presentation
Government-Wide Financial Statements
The Statement of Net Position and Statement of Activities display information on all of the nonfiduciary activities of the City. These statements include the financial activities of the overall government, except fiduciary activities. Eliminations have been made to minimize the double counting of internal activities.
Interfund services provided and used are not eliminated in the process of consolidation. These statements distinguish between the governmental and business-type activities of the City. Governmental activities, which are normally supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues for each different identifiable activity of the City's business-type activities and each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and; therefore, are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods and services offered by the program, 2) operating grants and contributions, and 3) capital grants and contributions. Taxes and other items not properly included among program revenues are presented instead as general revenues.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-39-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation (Continued)
Fund Financial Statements
The fund financial statements provide information about the City’s funds, including fiduciary funds. Funds are organized into three major categories: governmental, proprietary, and fiduciary. The emphasis is placed on major funds within the governmental and proprietary categories; each is displayed in a separate column.
The City reports the following major governmental funds:
• The General fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General fund includes such activities as public safety, planning and zoning, general administrative services, culture and recreation, and public works.
• The Streets and Roads fund is a special revenue fund used to account for revenues received from the State of California which must be spent for street maintenance or repairs. Funding comes primarily from state grants.
• The Special Revenue fund is a special revenue fund used to account for revenues and expenditures related to fire assessments, landfill assessments and development fees. Funding comes primarily from assessment income.
• The Special Grants fund is a capital projects fund used to account for various federal and state grants which must be spent for infrastructure capital outlays, such as streets and parks, and economic and community development. Funding comes primarily from federal and state grants.
The City reports the following major proprietary funds:
• The Sewer fund is an enterprise fund used to account for activity related to providing customers with sewer services and billing for sewer services provided by the City. • The Water fund is an enterprise fund used to account for activity related to providing customers with water service and billing for water services provided by the City.
The City reports the following additional fund type:
• The Custodial fund accounts for resources held by the City as an agent for the Court Nonadjudicated Seizure fund. The fund is used for safekeeping of cash deposits arising from seizures performed by the Siskiyou Unified Major Crime Investigation Unit (SUMIT), a recognized state task force.
As cases are adjudicated, funds are transferred to the court ordered recipients and/or participating agencies involved with the case.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-40-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Accounting and Measurement Focus
The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include property and sales tax, grants, entitlements, and donations. Under the accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied.
Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available.
Property and sales taxes, interest, certain state and federal grants and charges for services are considered susceptible to accrual and are accrued when their receipt occurs within 60 days after the end of the fiscal year. Expenditures are generally recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures as well as expenditures related to claims and judgments are recorded only when payment is paid. General capital asset acquisitions are reported as expenditures in the various functions of the governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
Fiduciary funds include custodial funds. All fiduciary funds are reported using the economic resources measurement focus and the accrual basis of accounting.
D. Non-Current Governmental Assets/Liabilities
Non-current governmental assets and liabilities, such as capital assets and long-term liabilities, are reported in the governmental activities column in the government-wide Statement of Net Position.
E. Cash and Cash Equivalents
For purposes of the accompanying Statement of Cash Flows, the City considers all highly liquid investments with a maturity of three months or less when purchased including amounts held in the City’s investment pool, to be cash and cash equivalents.
F. Investments
The City pools cash and investments of all funds. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-41-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Investments (Continued)
Investment transactions are recorded on the trade date. The fair value of investments is determined annually.
Investments in nonparticipating interest-earning investment contracts are reported at cost; short-term investments are reported at amortized cost, investments in the State of California Local Agency Investment Fund, an external pool, are reported at amortized cost which approximates fair value, and the fair value of all other investments are obtained by using quotations obtained from independent published sources or by the safekeeping institution. The fair value represents the amount the City could reasonably expect to receive for an investment in a current sale between a willing buyer and seller.
Income from pooled investments is allocated to the individual funds based on the fund or participant’s average daily cash balance at quarter end in relation to the total pool investments. Income from non-pooled investments is recorded based on the specific investments held by the fund.
G. Restricted Cash and Investments
Restricted assets in the governmental funds represent cash and investments held in the General fund for capital outlay per the trust documents that govern the bequests of these funds to the City of $618,681.
Restricted assets in the proprietary funds represent cash and investments held in the Sewer fund for debt service of $250,000 and in the Water fund for debt service of $300,000.
H. Receivables
Receivables for governmental activities consist mainly of accounts, intergovernmental, interest and taxes receivable. Management believes its receivables are fully collectible and, accordingly, no allowance for doubtful accounts is required.
Receivables for business-type activities consist mainly of user fees, intergovernmental revenue and interest.
Management believes its receivables are fully collectible and, accordingly, no allowance for doubtful accounts is required.
I. Loans Receivable
A total of $164,222 was recorded as loans receivable at June 30, 2023. Of this amount, $164,222 represents low interest notes and related accrued interest to finance multi-family and single-family construction and rehabilitation projects and homebuyer assistance for low-income families. Loan terms are 15 to 55 years with an interest rate at 0 to 5 percent. The primary source of funding for these loans comes from grants from the federal Community Development Block Grant (CDBG) program. The CDBG grants contain monitoring requirements to ensure grant compliance. These requirements are reflected in the loan agreements. The loans receivable balance is reported net of an allowance for uncollectible accounts of $144,250.
J. Capital Assets
Capital assets, including public domain (infrastructure such as roads, bridges, sidewalks, water, sewer, and similar items) are defined by the City as assets with a cost greater than $15,000 for property, plant and equipment and $50,000 for infrastructure assets. Capital assets are recorded at historical or estimated historical cost if actual historical cost is unavailable. Contributed capital assets are recorded at their acquisition value at the date of donation.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) J. Capital Assets (Continued)
Capital assets used in operations are depreciated or amortized using the straight-line method over the assets’ estimated useful lives in the government-wide financial statements. The range of estimated useful lives by type of asset is as follows:
Depreciable Asset Estimated Lives
Vehicles 5 to 10 years
Equipment 3 to 20 years
Water and sewer mains 50 years
Land improvements 20 to 30 years
Structures and improvements 50 years
Infrastructure 15 to 50 years
Maintenance and repairs are charged to operations when incurred. Betterments and major improvements which significantly increase values, change capacities, or extend useful lives are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.
K. Property Tax
Siskiyou County assesses properties, bills, collects, and distributes property taxes to the City. The County remits the entire amount levied and handles all delinquencies, retaining interest and penalties.
Property taxes are levied on a fiscal year (July 1 - June 30). The secured property tax assessments are due on November 1 and February 1 and become delinquent after December 10 and April 10, respectively. The unsecured property tax assessments are due on August 1 and become delinquent after August 31. Property taxes become a lien on the property effective January 1 of the preceding year.
The City recognizes property taxes when the individual installments are due, provided they are collected within 60 days after year-end.
L. Interfund Transactions
Interfund transactions are reflected as either loans, services provided or used, reimbursements or transfers.
Loans reported as receivables and payables are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the noncurrent portion of interfund loans) as appropriate and are subject to elimination upon consolidation. Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund balance account in applicable governmental funds to indicate that they are not in spendable form.
Services provided or used, deemed to be at market or near market rates, are treated as revenues and expenditures or expenses. These services provide information on the net cost of each government function and therefore are not eliminated in the process of preparing the government-wide Statement of Activities.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-43-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) L. Interfund Transactions (Continued)
Reimbursements occur when the funds responsible for particular expenditures or expenses repay the funds that initially paid for them. Such reimbursements are reflected as expenditures or expenses in the reimbursing fund and reductions to expenditures or expenses in the reimbursed fund.
All other interfund transactions are treated as transfers. Transfers between funds are netted as part of the reconciliation to the government-wide presentation.
M. Compensated Absences
In the government-wide financial statements, vested or accumulated vacation leave and compensated time off that is expected to be liquidated with expendable available financial resources is recorded as an expense and related liability with the current portion estimated based on historical trends. In the governmental fund financial statements, the expenditures and liabilities related to those obligations are recognized only when they mature. Vested or accumulated vacation leave and compensated time off of proprietary funds and in the government-wide financial statements is recorded as an expense and liability of those funds as the benefits accrue to employees.
Sick leave, however, does not vest with the employees and is payable only when sick leave is taken. In accordance with GASB Statement No. 16, no liability is recorded for non-vesting accumulating rights to receive sick pay benefits.
N. Pension
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pension, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
O. Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability/asset, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-44-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. Other Postemployment Benefits (OPEB) (Continued)
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2022
Measurement Date June 30, 2022
Measurement Period June 30, 2021 to June 30, 2022
P. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period and so will not be recognized as an outflow of resources (expense) until then. The City has two items that qualify for reporting in this category. These items relate to the outflows from changes in the net pension liability and net OPEB liability/asset and are reportable on the Statement of Net Position.
In addition to liabilities, the statement of financial position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The City has three items which qualify for reporting in this category. The first item, unavailable revenue is reported only in the governmental funds balance sheet.
The governmental funds report unavailable revenue for receivables that have not been received within the modified accrual period. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second and third items relate to the inflows from changes in the net pension liability and net OPEB liability/asset and are reportable on the Statement of Net Position.
Q. Estimates
The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
R. Implementation of Governmental Accounting Standards Board (GASB) Statements The following Governmental Accounting Standards Board (GASB) Statements have been implemented, if applicable, in the current financial statements.
Statement No. 91, Conduit Debt Obligations. This statement improves the comparability of financial reporting for issuers by eliminating the option to recognize a liability for a conduit debt obligation.
Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements.
This statement will improve financial reporting by establishing the definitions of PPPs and APAs and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-45-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) R. Implementation of Governmental Accounting Standards Board (GASB) Statements (Continued) Statement No. 96, Subscription-Based Information Technology Arrangements. This statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. The definition and uniform guidance will result in greater consistency in practice.
Statement No. 99, Omnibus 2022. This statement will enhance comparability in the application of accounting and financial reporting requirements and will improve the consistency of authoritative literature.
Consistent authoritative literature enables governments and other stakeholders to more easily locate and apply the correct accounting and financial reporting provisions, which improves the consistency with which such provisions are applied. The comparability of financial statements also will improve as a result of this Statement. Better consistency and comparability improve the usefulness of information for users of state and local government financial statements.
S. Future Accounting Pronouncements
The following GASB Statements will be implemented, if applicable, in future financial statements:
Statement No. 99 “Omnibus 2022” The requirements of this statement related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023. (FY 23/24) Statement No. 100 “Accounting Changes and Error Corrections – an amendment of GASB Statement No. 62” The requirements of this statement are effective for fiscal years beginning after June 15, 2023. (FY 23/24)
Statement No. 101 “Compensated Absences” The requirements of this statement are effective for fiscal years beginning after December 15, 2023. (FY 24/25)
NOTE 2: CASH AND INVESTMENTS
A. Financial Statement Presentation
As of June 30, 2023, the City’s cash and investments are reported in the financial statements as follows:
Governmental activities $ 18,209,181
Business-type activities 10,873,704
Fiduciary funds 19,221
Total Cash and Investments $ 29,102,106
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-46-
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
A. Financial Statement Presentation (Continued)
As of June 30, 2023, the City’s cash and investments consisted of the following:
Cash:
Cash on hand $ 1,200
Deposits (less outstanding checks) 2,014,128
Total Cash 2,015,328
Investments:
In City’s pool 27,086,778
Total Investments 27,086,778
Total Cash and Investments $ 29,102,106
B. Cash
At year end, the carrying amount of the City’s cash deposits (including amounts in checking accounts) was $2,014,128 and the bank balance was $2,797,573. The difference between the bank balance and the carrying amount represents outstanding checks and deposits in transit. In addition, the City had cash on hand of $1,200.
Custodial Credit Risk for Deposits - Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or collateral securities that are in the possession of an outside party. The City’s investment policy requires that deposits in banks must meet the requirements of the California Government Code. Under this code, deposits of more than $250,000 must be collateralized at 105 percent to 150 percent of the value of the deposit to guarantee the safety of the public funds. The first $250,000 of the City’s deposits are insured by the Federal Deposit Insurance Corporation (FDIC). Deposits of more than the $250,000 insured amount are collateralized.
C. Investments
The City has an investment policy, the purpose of which is to establish guidelines for prudent investment of the City’s funds, and outline the policies for maximizing the efficiency of the City’s cash management program. The ultimate goal is to enhance the economic status of the City while protecting its pooled investments.
The investment policy provides the basis for the management of a prudent, conservative investment program. Funds are invested to provide the maximum security of principal with secondary emphasis on achieving the highest return, while meeting daily cash flow needs. All investments are made in accordance with the Government Code and, in general, the investment policy is more restrictive than state law.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-47-
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
C. Investments (Continued)
Under the provisions of the City’s investment policy the City may invest or deposit in the following:
U.S. Treasury Obligations
U.S. Government Agency Securities and Instrumentalities of Government Sponsored Corporations Bankers’ Acceptances
Commercial Paper
Repurchase Agreements
Time Deposits and Certificates of Deposit
Negotiable Certificates of Deposit
State of California Local Agency Investment Fund (LAIF) Fair Value of Investments - The City measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a threetiered fair value hierarchy as follows:
Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs
The City’s position in external investment pools is in itself regarded as a type of investment and looking through to the underlying investments of the pool is not appropriate. Therefore, the City’s investments in external investment pools are not recognized in the three-tiered fair value hierarchy described above.
At June 30, 2023, the City had the following recurring fair value measurements:
Fair Value Measurements Using
Investment Type Fair Value Level 1 Level 2 Level 3
Investments by Fair Value Level
Certificates of Deposit $ 3,120,699 $ 3,120,699 $ - $ - Total Investments Measured at Fair Value 3,120,699 $ 3,120,699 $ - $ - Investments in External Investment Pool
LAIF 23,966,079
Total Investments $ 27,086,778
Interest Rate Risk - Interest rate risk is the risk of loss due to the fair value of an investment falling due to interest rates rising. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. To limit the exposure to fair value losses resulting from increases in interest rates, the City’s investment policy limits investment maturities to a term appropriate to the need for funds so as to permit the City to meet all projected obligations.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-48-
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
C. Investments (Continued)
As of June 30, 2023, the City had the following investments, all of which had a maturity of 5 years or less:
Maturities Weighted
Average
Interest Fair Maturity
Investment Type Rates 0-1 year 1-5 years Value (Years)
Certificates of Deposit 0.900-2.700% $ 965,543 $ 2,155,156 $ 3,120,699 1.89 LAIF Variable 23,966,079 - 23,966,079 -
Total Investments $ 24,931,622 $ 2,155,156 $ 27,086,778 0.22 Credit Risk - Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City’s investment policy sets specific parameters by type of investment to be met at the time of purchase. Presented below is the minimum rating required (where applicable) by the California Government Code or the City’s investment policy and the actual rating as of year-end for each investment type.
Standard &
Minimum Legal Poor’s Moody’s % of
Investment Type Rating Rating Rating Portfolio
Certificates of Deposit N/A NR NR 11.52%
LAIF N/A NR NR 88.48%
Total 100.00%
Custodial Credit Risk - Custodial credit risk for investments is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or collateral securities that are in the possession of an outside party. To mitigate the custodial credit risk the City’s investment policy requires that all securities owned by the City shall be held in safekeeping by a third-party bank trust department.
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 states that no more than 50 percent of the City’s total investment portfolio shall be invested in a single security type or with a single financial institution. Unless matched to a specific cash flow, the City shall not directly invest in securities maturing more than five years from the date of purchase. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) at June 30, 2023 did not exceed 5 percent.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-49-
NOTE 2: CASH AND INVESTMENTS (CONTINUED)
D. Investment in External Investment Pool
The City of Yreka maintains an investment in the State of California Local Agency Investment Fund (LAIF), managed by the State Treasurer. This fund is not registered with the Securities and Exchange Commission as an investment company, but is required to invest according to California State Code. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. At June 30, 2023, the City’s investment in LAIF valued at amortized cost was $23,966,079 and is the same as the value of the pool shares. There are no restrictions on withdrawal of funds. The total amount invested by all public agencies in LAIF on that day was $178.4 billion. Of that amount, 97.22 percent is invested in non-derivative financial products and 2.78 percent in structured notes and asset-backed securities.
NOTE 3: CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2023, was as follows:
Balance Balance
July 1, 2022 Additions Retirements June 30, 2023
Governmental Activities
Capital Assets, Not Being Depreciated
Land $ 2,204,965 $ - $ - $ 2,204,965
Construction in progress 1,404,382 702,399 ( 85,967) 2,020,814 Total Capital Assets, Not Being Depreciated 3,609,347 702,399 ( 85,967) 4,225,779 Capital Assets, Being Depreciated
Building and structures 11,764,744 - - 11,764,744
Machinery and equipment 5,896,736 45,614 - 5,942,350
Subscription-based information technology
arrangements - 88,686 - 88,686
Infrastructure 34,131,267 - - 34,131,267
Total Capital Assets, Being Depreciated 51,792,747 134,300 - 51,927,047 Less Accumulated Depreciation For:
Building and structures ( 4,433,726) ( 275,485) - ( 4,709,211) Machinery and equipment ( 3,292,922) ( 369,637) - ( 3,662,559) Subscription-based information technology
arrangements - ( 17,906) - ( 17,906)
Infrastructure ( 24,298,604) ( 544,279) - ( 24,842,883) Total Accumulated Depreciation ( 32,025,252) ( 1,207,307) - ( 33,232,559) Total Capital Assets, Being Depreciated, Net 19,767,495 ( 1,073,007) - 18,694,488 Governmental Activities Capital Assets, Net $ 23,376,842 ($ 370,608) ($ 85,967) $ 22,920,267 Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-50-
NOTE 3: CAPITAL ASSETS (CONTINUED)
Balance Transfers/ Balance
July 1, 2022 Additions Retirements June 30, 2023
Business-Type Activities
Capital Assets, Not Being Depreciated
Land $ 374,428 $ - $ - $ 374,428
Construction in progress 11,364,445 4,887,673 ( 6,241,245) 10,010,873 Total Capital Assets, Not Being Depreciated 11,738,873 4,887,673 ( 6,241,245) 10,385,301 Capital Assets, Being Depreciated
Building and structures 12,493,673 - - 12,493,673
Machinery and equipment 8,558,796 231,748 - 8,790,544
Subscription-based information technology
arrangements - 29,898 - 29,898
Infrastructure 29,429,842 - 6,241,245 35,671,087
Total Capital Assets, Being Depreciated 50,482,311 261,646 6,241,245 56,985,202 Less Accumulated Depreciation For:
Building and structures ( 5,744,763) ( 294,191) - ( 6,038,954) Machinery and equipment ( 5,587,878) ( 230,778) - ( 5,818,656) Subscription-based information technology
arrangements - ( 2,406) - ( 2,406)
Infrastructure ( 15,829,742) ( 772,343) - ( 16,602,085) Total Accumulated Depreciation ( 27,162,383) ( 1,299,718) - ( 28,462,101) Total Capital Assets, Being Depreciated, Net 23,319,928 ( 1,038,072) 6,241,245 28,523,101 Business-Type Activities Capital Assets, Net $ 35,058,801 $ 3,849,601 $ - $ 38,908,402 Depreciation
Depreciation expense was charged to governmental activities as follows:
General government $ 93,993
Public safety 141,915
Public ways and facilities 732,881
Culture and recreation 238,518
Total Depreciation Expense – Governmental Activities $ 1,207,307 Depreciation expense was charged to the business-type activities as follows:
Sewer $ 595,343
Water 704,375
Total Depreciation Expense – Business-Type Activities $ 1,229,718 Construction in Progress
Construction in progress for governmental activities relates primarily to work performed on street improvements, storm drains and information system improvements. Construction in progress for businesstype activities relates primarily to sewer and water upgrades.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-51-
NOTE 4: INTERFUND TRANSACTIONS
Transfers
Transfers are indicative of funding for capital projects, lease payments or debt service and re-allocations of special revenues. The following are the interfund transfers for fiscal year ended June 30, 2023:
Transfers In Transfers Out
General fund $ - $ 898,705
Streets and Roads fund 589,865 -
Special Revenue fund - 25,285
Special Grants fund 313,535 -
Sewer fund 4,623 -
Water fund 15,967 -
Total $ 923,990 $ 923,990
NOTE 5: UNEARNED REVENUES
At June 30, 2023, the components of unearned revenue were as follows:
Unearned
General Fund
Coronavirus State and Local Fiscal Relief Funds received in advance $ 899,233 Miner Street Park Restoration Project funding 6,000
Juniper Street Fencing Project funding 22,659
Special Grants
Funds received in advance 100,000
Total $ 1,027,892
NOTE 6: LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the year ended June 30, 2023:
Amounts
Balance Additions/ Balance Due Within
Type of Indebtedness July 1, 2022 Adjustments Retirements June 30, 2023 One Year Governmental Activities
Compensated absences $ 243,817 $ 297,277 ($ 248,295) $ 292,799 $ 292,799 Loans from direct borrowings 1,325,858 - ( 103,492) 1,222,366 109,073 Certificates of participation 2,597,000 - ( 35,000) 2,562,000 37,000 Capital leases 352,587 - ( 86,280) 266,307 87,514
Subscription-based information
technology arrangements - 88,686 ( 41,971) 46,715 22,897 Total Governmental Activities $ 4,519,262 $ 385,963 ($ 515,038) $ 4,390,187 $ 549,283 Business-Type Activities
Compensated absences $ 58,164 $ 100,242 ($ 90,096) $ 68,310 $ 68,310 Loans from direct borrowings 4,632,573 967,427 ( 5,600,000) - - Certificates of participation 9,946,000 5,600,000 ( 227,000) 15,319,000 372,000 Capital leases 286,400 - ( 82,171) 204,229 83,529
Subscription-based information
technology arrangements - 29,898 ( 10,334) 19,564 9,602 Total Business-Type Activities $ 14,923,137 $ 6,697,567 ($ 6,009,601) $ 15,611,103 $ 533,441 Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-52-
NOTE 6: LONG-TERM LIABILITIES (CONTINUED)
Compensated absences are generally liquidated by the fund where the accrued liability occurred. Individual issues of debt payable outstanding at June 30, 2023, are as follows:
For the business-type activities, all debt is accounted for in the proprietary fund where the liability occurred.
Governmental Activities
Loans from Direct Borrowings:
County of Siskiyou loan, dated May 8, 2007, payable in annual installments of $175,000, with an interest rate of 5.93% and maturity of May 8, 2032. This loan was used to finance the sale of the landfill site. The loan is secured by an assessment to the taxpayers’ property.
Total Loans from Direct Borrowings
Certificates of Participation:
2019 Certificates of Participation, dated September 7, 2018, payable in annual installments of $36,000 to $122,000, with an interest rate of 3.50% and maturity of April 1, 2059. These Certificates of Participation were used to finance the construction of the City’s police department facilities and are secured by the facilities.
Total Certificates of Participation
Total Governmental Activities
$ 1,222,366
1,222,366
2,562,000
2,562,000
$ 3,784,366
Business-Type Activities
Certificates of Participation:
2012 Wastewater Certificates of Participation, dated February 6, 2014, payable in semiannual principal installments of $84,000 to $164,000, with an interest rate of
2.75%, and maturity of January 1, 2054. These Certificates of Participation were used to finance improvements to the City’s wastewater collection, treatment and disposal system and are secured by the wastewater system. 2010 Water Certificates of Participation, dated October 1, 2010, payable in annual principal installments of $111,000 to $257,000, with an interest rate of 2.25%, and maturity of October 1, 2050. These Certificates of Participation were used to finance improvements to the City’s water facilities and are secured by the water system.
Series 2022 Wastewater Revenue Certificates of Participation, dated December 1, 2022, payable in annual principal installments of $99,000 to $191,000, with an interest rate of 2.43%, and a maturity of July 1, 2062. These Certificates of Participation were used to refinance the bond anticipation note with Banner Bank that was used to finance the Main Street Sewer Interceptor Improvement Project.
Total Certificates of Participation
Total Business-Type Activities
$ 4,278,000
5,441,000
5,600,000
15,319,000
$ 15,319,000
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-53-
NOTE 6: LONG-TERM LIABILITIES (CONTINUED)
Following is a schedule of debt payment requirements to maturity for long-term debt, excluding compensated absences that have indefinite maturities.
Governmental Activities
Loans from Direct Borrowings
Year Ended
June 30 Principal Interest Total
2024 $ 109,073 $ 65,927 $ 175,000
2025 114,956 60,044 175,000
2026 121,156 53,844 175,000
2027 127,690 47,310 175,000
2028 134,577 40,423 175,000
2029-2032 614,914 85,086 700,000
Total $ 1,222,366 $ 352,634 $ 1,575,000
Certificates of Participation
Year Ended
June 30 Principal Interest Total
2024 $ 37,000 $ 89,670 $ 126,670
2025 38,000 88,375 126,375
2026 39,000 87,045 126,045
2027 41,000 85,680 126,680
2028 42,000 84,245 126,245
2029-2033 234,000 398,020 632,020
2034-2038 276,000 354,235 630,235
2039-2043 328,000 302,470 630,470
2044-2048 391,000 240,835 631,835
2049-2053 463,000 167,545 630,545
2054-2058 551,000 80,535 631,535
2059 122,000 4,270 126,270
Total $ 2,562,000 $ 1,982,925 $ 4,544,925
Business-Type Activities
Certificates of Participation
Year Ended
June 30 Principal Interest Totals
2024 $ 372,000 $ 338,364 $ 710,364
2025 336,000 326,185 662,185
2026 344,000 318,568 662,568
2027 351,000 310,774 661,774
2028 359,000 302,807 661,807
2029-2033 1,923,000 1,387,792 3,310,792
2034-2038 2,147,000 1,158,848 3,305,848
2039-2043 2,401,000 902,161 3,303,161
2044-2048 2,686,000 614,209 3,300,209
2049-2053 2,469,000 303,158 2,772,158
2054-2058 1,009,000 120,426 1,129,426
2059-2063 922,000 40,900 962,900
Total $ 15,319,000 $ 6,124,192 $ 21,443,192
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-54-
NOTE 7: LEASES
Capital Leases
The City has entered into certain capital lease agreements under which the related equipment will become the property of the City when all terms of the lease agreements are met.
Present Value
of Remaining
Stated Payments at
Interest Rate June 30, 2023
Governmental activities 1.40% $ 266,307
Business-type activities 1.64% 204,229
Total $ 470,536
Equipment and related accumulated depreciation under capital lease are as follows:
Governmental Business-Type
Activities Activities
Equipment $ 437,652 $ 413,780
Less: accumulated depreciation ( 29,177) ( 27,586)
Net Value $ 408,475 $ 386,194
As of June 30, 2023, capital lease annual amortization is as follows:
Year Ended Governmental Business-Type
June 30 Activities Activities
2024 $ 90,727 $ 86,252
2025 90,727 86,252
2026 90,727 35,938
Total Requirements 272,181 208,442
Less: interest ( 5,874) ( 4,213)
Present Value of Remaining Payments $ 266,307 $ 204,229 Subscription-Based Information Technology Arrangements
The City has four Subscription-Based Information Technology Arrangements (SBITA), which meet the criteria as defined by GASB Statement No. 96, Subscription-Based Information Technology Arrangements.
The SBITA for the Digital Forensics software expires in April, 2025. As of June 30, 2023, the City’s subscription liability was $12,443. The City is required to make annual principal and interest payments of $6,573. The lease has an interest rate of 3.67%. The value of the right-to-use asset and accumulated amortization as of June 30, 2023 were $19,016 and $1,143, respectively.
The SBITA for Microsoft Office 365 expires in June, 2025. As of June 30, 2023, the City’s subscription liability was $18,031. The City is required to make monthly principal and interest payments of $616 to $785. The lease has an interest rate of 3.67%. The value of the right-to-use asset and accumulated amortization as of June 30, 2023 were $24,684 and $8,221, respectively.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-55-
NOTE 7: LEASES (CONTINUED)
Subscription-Based Information Technology Arrangements (Continued) The SBITA for Microsoft Office 365 yearly expires in September, 2024. As of June 30, 2023, the City’s subscription liability was $16,241. The City is required to make annual principal and interest payments of $8,556. The lease has an interest rate of 3.67%. The value of the right-to-use asset and accumulated amortization as of June 30, 2023 were $22,976 and $6,993, respectively.
The SBITA for the Water/Sewer Esri software expires in April, 2025. As of June 30, 2023, the City’s subscription liability was $19,564. The City is required to make annual principal and interest payments of $10,334. The lease has an interest rate of 3.67%. The value of the right-to-use asset and accumulated amortization as of June 30, 2023 were $29,898 and $2,406, respectively.
The future principal and lease payments as of June 30, 2023 are as follows:
Governmental Activities
Year Ended
June 30 Principal Interest Total
2024 $ 22,897 $ 1,520 $ 24,417
2025 23,818 703 24,521
Total $ 46,715 $ 2,223 $ 48,938
Business-Type Activities
Year Ended
June 30 Principal Interest Total
2024 $ 9,602 $ 732 $ 10,334
2025 9,962 372 10,334
Total $ 19,564 $ 1,104 $ 20,668
NOTE 8: NET POSITION
The government-wide and proprietary fund financial statements utilize a net position presentation. Net position is categorized as net investment in capital assets, restricted and unrestricted. • Net investment in capital assets - consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction or improvement of those assets.
• Restricted net position - consists of net position with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. These principally include restrictions for capital projects, debt service requirements and other special revenue fund purposes.
• Unrestricted net position - all other net position that does not meet the definition of “restricted” or “net investment in capital assets”.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-56-
NOTE 8: NET POSITION (CONTINUED)
Net Position Flow Assumption
When a government funds outlays for a particular purpose from both restricted and unrestricted resources, a flow assumption must be made about the order in which the resources are considered to be applied. When both restricted and unrestricted net position are available, it is considered that restricted resources are used first, followed by the unrestricted resources.
Net Position Restricted by Enabling Legislation
The government-wide Statement of Net Position reports $7,587,620 of restricted net position, of which $3,022,155 is restricted by enabling legislation.
NOTE 9: FUND BALANCES
As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances for governmental funds can be made up of the following:
• Nonspendable fund balance - amounts that cannot be spent because they are either (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, for example:
inventories and prepaid amounts.
• Restricted fund balance - amounts with constraints placed on their use that are either (a) externally imposed by creditors, grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers. • Committed fund balance - amounts that can only be used for the specific purposes determined by formal action of the City’s highest level of decision-making authority. The City Council is the highest level of decision-making authority for the City that can, by adoption of an ordinance, commit fund balance. Once adopted, the limitation imposed remains in place until a similar action is taken to remove or revise the limitation. The underlying action that imposed the limitation needs to occur no later than the close of the reporting period. • Assigned fund balance - amounts that are constrained by the City’s intent to be used for specific purposes. The intent can be established at either the highest level of decision-making authority, or by a body or an official designated for that purpose.
• Unassigned fund balance - the residual classification for the City’s General fund that includes all amounts not contained in the other classifications. In other funds, the unassigned classification is used only if expenditures incurred for specific purposes exceed the amounts restricted, committed, or assigned to those purposes.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-57-
NOTE 9: FUND BALANCES (CONTINUED)
The fund balances for all major and nonmajor governmental funds as of June 30, 2023, were distributed as follows:
Streets and Special Special
General Roads Revenue Grants Totals
Nonspendable:
Loans Receivable $ - $ - $ - $ 164,222 $ 164,222
Inventory 20,832 - - - 20,832
Subtotal 20,832 - - 164,222 185,054
Restricted for:
Community Services 38,439 - - - 38,439
Capital Improvements 421,834 - - - 421,834
Streets and Sidewalks - 1,427,720 - - 1,427,720
Fire Protection - - 1,255,797 - 1,255,797
Debt Servicing 505,046 - 338,638 - 843,864
Revolving Loans - - - 643,046 643,046
Public Safety - - - 467,746 467,716
Subtotal 965,319 1,427,720 1,594,435 1,110,792 5,098,266 Assigned for:
Capital Improvements 920,036 - - 1,861,386 2,781,422
Planning and Development 134,020 - - - 134,020
Budget Stabilization 100,000 - - - 100,000
Grant Contingencies 1,386,370 - - - 1,386,370
Subtotal 2,540,426 - - 1,861,386 4,401,812
Unassigned 8,621,818 - - - 8,621,818
Total $ 12,148,395 $ 1,427,720 $ 1,594,435 $ 3,136,400 $ 18,306,950 Fund Balance Flow Assumption
When a government funds outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance), a flow assumption must be made about the order in which the resources are considered to be applied. When both restricted and unrestricted fund balance are available, it is considered that restricted fund balance is depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance.
Unassigned fund balance is applied last.
Fund Balance Policy
The City Council has adopted a fund balance policy for financial statement reporting. The policy establishes procedures for reporting fund balance classifications, establishes prudent reserve requirements and establishes a hierarchy of fund balance expenditures.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-58-
NOTE 10: PENSION PLAN
A. General Information about the Pension Plan
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Employee Pension Plan, a cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plan are established by State statute and City resolution.
CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
Effective January 1, 2013, the City added retirement tiers for the Miscellaneous and Safety Rate Tiers for new employees as required under the Public Employee Pension Reform Act (PEPRA). New employees hired on or after January 1, 2013 will be subject to new, lower pension formulas, caps on pensionable income levels and new definitions of pensionable income. In addition, new employees will be required to contribute half of the total normal cost of the pension benefit unless impaired by an existing Memorandum of Understanding. The cumulative effect of these PEPRA changes will ultimately reduce the City’s retirement costs.
Summary of Rate Tiers and Eligible Participants
Open for New Enrollment
Miscellaneous PEPRA Miscellaneous members hired on or after January 1, 2013 Safety PEPRA Safety members hired on or after January 1, 2013 Closed to New Enrollment
Miscellaneous Miscellaneous members hired before January 1, 2013 Safety Safety members hired before January 1, 2013
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 (age 52 for Miscellaneous Plan members if the membership date is on or after January 1, 2013) with statutorily reduced benefits. Retirement benefits are paid monthly for life. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
Each Rate Tier’s specific provisions and benefits in effect at June 30, 2023, are summarized as follows:
Monthly Benefits
Benefit Retirement as a % of
Formula Age Eligible Compensation
Miscellaneous 2.0% @ 55 50-62 1.426% to 2.418%
Miscellaneous PEPRA 2.0% @ 62 52-67 1.000% to 2.500%
Safety 2.0% @ 50 50-55 2.000% to 2.700%
Safety PEPRA 2.7% @ 57 50-57 2.000% to 2.700%
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-59-
NOTE 10: PENSION PLAN (CONTINUED)
A. General Information about the Pension Plan (Continued) Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for all Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
Employer Employee Employer Paid
Contribution Contribution Member
Rates Rates Contribution Rates
Miscellaneous 10.320% 7.000% 0.000%
Miscellaneous PEPRA 7.470% 6.750% 0.000%
Safety 18.170% 9.000% 0.000%
Safety PEPRA 12.780% 13.000% 0.000%
For the year ended June 30, 2023, the contributions recognized as part of pension expense were as follows:
Contributions-Employee
Contributions-Employer (Paid by Employer)
Miscellaneous $ 664,928 $ -
Safety 469,653 -
B. Pension Liability, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2022, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined.
The City’s proportionate share of the net pension liability for the Plan as of June 30, 2022 and 2023 was as follows:
Proportion Proportion Change-
June 30, 2022 June 30, 2023 Increase (Decrease)
Miscellaneous .19315% .14846% ( .04469%)
Safety .07256% .10264% .03008%
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-60-
NOTE 10: PENSION PLAN (CONTINUED)
B. Pension Liability, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension (Continued)
As of June 30, 2023, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan as follows:
Proportionate
Share of Net
Pension Liability
Miscellaneous $ 6,946,827
Safety 7,052,962
Total Net Pension Liability $ 13,999,789
For the year ended June 30, 2023, the City recognized pension expense of $2,501,099. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to the measurement date $ 1,277,872 $ - Changes in assumptions 1,423,000 -
Difference between expected and actual experience 431,402 ( 170,024) Difference between projected and actual earnings on
pension plan investments 2,386,235 -
Difference between City contributions and proportionate share of contributions 2,069,331 ( 1,772,294)
Adjustment due to differences in proportions 131,218 ( 772,700) Total $ 7,719,058 ($ 2,715,018)
$1,277,872 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized as pension expense as follows:
Fiscal
Year Ended
June 30
2024 $ 1,172,682
2025 878,702
2026 217,086
2027 1,457,698
Thereafter -
Total $ 3,726,168
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-61-
NOTE 10: PENSION PLAN (CONTINUED)
B. Pension Liability, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension (Continued)
Actuarial Assumptions
The total pension liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions:
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.90%
Investment Rate of Return 6.90%
Inflation 2.30%
Salary Increases Varies by entry-age and service
Mortality Rate Table Derived using CalPERS’ membership data for all funds Post-Retirement Benefit Increase Contract COLA up to 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power
applies
The mortality table used was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing mortality improvement using 80 percent of Scale MP-2020 published by the Society of Actuaries. For more details, please refer to the CalPERS 2021 experience study that can be found on the CalPERS website.
Discount Rate
The discount rate used to measure the total pension liability for PERFC 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
In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and, combined with risk estimates, are used to project compound (geometric) returns over the long-term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-62-
NOTE 10: PENSION PLAN (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension (Continued)
Long-Term Expected Rate of Return (Continued)
The expected real rates of return by asset class are as follows:
Assumed Real Return
Asset Years 1-10
Asset Class Allocation (1, 2)
Global Equity – Cap-Weighted 30.0% 4.54%
Global Equity – Non-Cap-Weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage ( 5.0%) ( 0.59%)
Total 100.0%
(1) An expected price inflation of 2.30% used for this period (2) Figures are based on the 2021 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 each Rate Tier as of the measurement date, calculated using the discount rate for each Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1- percentage point lower or 1-percentage point higher than the current rate:
1% Discount 1%
Decrease Rate Increase
5.90% 6.90% 7.90%
Miscellaneous $ 10,231,582 $ 6,946,827 $ 4,244,290
Safety 9,611,180 7,052,962 4,962,196
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-63-
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB)
A. General Information about the OPEB Plan
Plan Description
The City’s defined benefit OPEB plan (the Plan) provides OPEB to retirees of the City. The Plan is an agent multiple-employer defined benefit plan administered by the California Public Employees’ Retirement System (CalPERS). The City Council reserves the authority to review and amend the funding policy from time to time, in order to ensure that the funding policy continues to best suit the circumstances of the City.
Benefits Provided
The City provides retiree medical, dental and vision insurance coverage. Only medical coverage is subsidized by the City.
If dental and/or vision coverage is selected, the retiree must pay 100 percent of the premiums. Since no OPEB liability is expected with respect to dental or vision coverage for retirees, neither is considered in the valuation of the net OPEB liability.
Medical coverage is currently provided through CalPERS as permitted under the Public Employees’ Medical and Hospital Care Act (PEMHCA). This coverage requires the employee to satisfy the requirements for retirement under CalPERS: either (a) attainment of age 50 (age 52, if a miscellaneous PEPRA employee) with 5 years of State or public agency service or (b) an approved disability retirement.
The employee must begin his or her retirement (“pension”) benefit within 120 days of terminating employment with the City to be eligible to continue medical coverage through the City and be entitled to the employer subsidy described below.
If an eligible employee is not already enrolled in the medical plan, he or she may enroll within 60 days of retirement or during any future open enrollment period. Coverage may be continued at the retiree’s option for his or her lifetime. A surviving spouse and other eligible dependents may also continue coverage.
As a PEMHCA employer, the City is obligated to contribute toward the cost of retiree medical coverage for the retiree’s lifetime or until coverage is discontinued. The City’s current PEMHCA resolution on file with CalPERS, executed in 2001, defines the City’s contribution toward the cost of medical plan premiums for active and retired employees to be the PEMHCA Minimum Employer Contribution (MEC). The MEC was $149 per month in 2022 and increased to $151 per month in 2023.
Contributions
The City plans to prefund its OPEB liability by contributing 100 percent or more of the Actuarially Determined Contributions each year. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2023, the City’s cash contributions were $77,026 in payments to the trust. The City has created a trust with California Employers’ Retiree Benefit Trust (CERBT) for the purpose of prefunding obligations for past services.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-64-
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) A. General Information about the OPEB Plan (Continued)
Employees Covered by Benefit Terms
At June 30, 2023 the following employees were covered by the benefit terms:
Active employees waiving coverage 19
Inactive employees or beneficiaries currently receiving benefit payments 16 Active employees 42
Total 77
B. Net OPEB Liability
The City’s net OPEB liability of $245,805, was measured as of June 30, 2022, and was determined by the actuarial valuation as of June 30, 2022.
Actuarial Assumptions and Other Inputs
The net OPEB liability in the June 30, 2022 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified:
Valuation Date June 30, 2022
Funding Method Entry Age Normal Cost, level of percent of pay Asset Valuation Method Market value of assets
Discount Rate 5.65%
Participants Valued Only current active and retired participants. No future entrants are considered in the valuation.
Salary Increase 3.00% per year; allocates the cost of benefits between service years General Inflation Rate 2.50% per year
Healthcare cost trend rates 6.80% for 2024, decreasing to an ultimate rate of 3.90% for 2076 and later years
Demographic actuarial assumptions used in the June 30, 2022 valuation are based on the 2021 experience study of the California Public Employees Retirement System using data from 1997 to 2019, except for a different basis used to project future mortality improvements. The representative mortality rates were those published by CalPERS’ adjusted to back out 15 years of Scale MD 2016 to central year 2015.
Discount Rate
The discount rate used to measure the total OPEB liability was 5.65 percent. The projection of cash flows used to determine the discount rate assumed that 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 OPEB liability.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-65-
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) Long-Term Expected Rate of Return
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and longterm market return expectations as well as the expected pension fund cash flows. Using historical and forecasted information for all of the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 5 years) and the long-term (6-20 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.
The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.
These rates of return are net of administrative expenses.
Expected Expected
Target Real Return Real Return
Asset Class Allocation Years 1-5(a) Years 6-20(b)
Global Equity 34.0% 4.40% 4.50%
Fixed Income 41.0% -1.00% 2.20%
Global Real Estate (REITs) 17.0% 3.00% 3.90%
Treasury Inflation Protected Securities 5.0% -1.80% 1.30% Real Asset Commodities 3.0% 0.80% 1.20%
Total 100.0%
(a) An expected inflation of 2.40% used for this period (b) An expected inflation of 2.30% used for this period Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-66-
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) C. Changes in the Net OPEB Liability (Asset)
The table below shows the changes in the total OPEB liability (asset), the Plan Fiduciary Net Position (i.e.
Fair value of the Plan assets), and the net OPEB liability (asset) during the measurement period ending on June 30, 2022 for the City’s proportionate share.
Increases (Decreases)
Total OPEB Plan Net OPEB
Liability Fiduciary Liability
(Asset) Net Position (Asset)
(a) (b) (a) – (b)
Balances at Fiscal Year Ending June 30, 2022 $ 1,111,622 $ 1,444,348 ($ 332,726) Changes during the period:
Service cost 53,858 - 53,858
Interest cost 73,555 - 73,555
Contributions - employer - 96,438 ( 96,438)
Net investment income - ( 187,520) 187,520
Differences between expected and actual experience 268,955 - 268,955 Changes of assumptions 90,708 - 90,708
Benefit payments ( 50,174) ( 50,174) -
Administrative expense - ( 373) 373
Net Changes 436,902 ( 141,629) 578,531
Balances at Fiscal Year Ending June 30, 2023 $ 1,548,524 $ 1,302,719 $ 245,805 Sensitivity of the Net OPEB Liability (Asset) to Changes in the Discount Rate The following presents the net OPEB liability (asset) of the City, as well as what the City’s net OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower or 1- percentage-point higher than the current discount rate:
1% Decrease Discount Rate 1% Increase
4.65% 5.65% 6.65%
Net OPEB Liability (Asset) $ 444,243 $ 245,805 $ 81,632 Sensitivity of the Net OPEB Liability (Asset) to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability (asset) of the City, as well as what the City’s net OPEB liability (asset) would be if it were calculated using healthcare cost trend rates that are 1-percentage point lower or 1-percentage point higher than the current healthcare cost trend rates:
Current Trend Current Trend
-1% Current Trend +1%
Net OPEB Liability (Asset) $ 57,496 $ 245,805 $ 481,680 Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-67-
NOTE 11: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) D. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
For the year ended June 30, 2023, the City recognized an OPEB expense of $40,663. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Contributions made subsequent to the measurement date $ 77,026 $ - Change of assumptions 82,041 ( 19,357)
Differences between expected and actual experience 242,378 ( 292,900) Net difference between projected and actual earnings on investments 136,849 - Total $ 538,294 ($ 312,257)
$77,026 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability (asset) in the year ended June 30, 2024.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Fiscal
Year Ended
June 30
2023 $ 3,436
2024 5,213
2025 3,402
2026 33,642
2027 ( 10,162)
Thereafter 113,480
$ 149,011
OPEB Plan Fiduciary Net Position
Detailed information about the OPEB plan’s fiduciary net position is available in separately issued CalPERS financial reports and can be found on their website.
NOTE 12: RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters.
There is no claims liability to be reported based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.
There are no significant reductions in insurance coverage from prior years and there have been no settlements exceeding the insurance coverages for each of the past three fiscal years.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
-68-
NOTE 12: RISK MANAGEMENT (CONTINUED)
The City is a member of the Small Cities Organized Risk Effort joint powers authority (SCORE), which provides the City with liability coverage with limits of $40,000,000 for each occurrence, workers’ compensation coverage with limits to $4,850,000 for each occurrence and property coverage for replacement. SCORE provides these limits and coverage by participating in the California Joint Powers Risk Management Authority (CJPRMA) for excess liability and Local City Workers’ Compensation Excess Liability joint powers authority (LAWCX) for excess workers’ compensation. Property coverage is obtained by a group purchase from insurance companies with the City’s deductible being $10,000 each claim for vehicles and property.
NOTE 13: OTHER INFORMATION
A. Commitments and Contingencies
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies.
Any disallowed claims, including amounts already collected, may constitute a liability of the appreciable 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.
B. Subsequent Events
Management has evaluated events subsequent to June 30, 2023 through March 13, 2024, the date on which the financial statements were available for issuance. Management has determined no subsequent events requiring disclosure have occurred.
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April 16, 2024
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Yreka City Council Agenda
April 16, 2024
Required Supplementary Information
(Unaudited)
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April 16, 2024
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April 16, 2024
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Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Required Supplementary Information
City Pension Plan
Schedule of Proportionate Share of the Net Pension Liability For the Year Ended June 30, 2023
Last 10 Years*
Measurement Date 2013/2014 2014/2015 2015/2016 2016/2017 Miscellaneous
Proportion of the net pension liability 0.04824% 0.11561% 0.12410% 0.12737% Proportionate share of the net pension liability $ 3,001,876 $ 3,171,703 $ 4,311,099 $ 5,021,119 Covered payroll 1,702,490 1,603,577 1,532,020 1,524,699 Proportionate share of the net pension liability
as a percentage of covered payroll 176.32% 197.79% 281.40% 329.32% Plan fiduciary net position as a percentage of the
total pension liability 83.03% 83.86% 77.23% 75.07%
Miscellaneous PEPRA
Proportion of the net pension liability 0.00001% -0.00003% 0.00001% 0.00010% Proportionate share of the net pension liability $ 416 $ (842) $ 196 $ 3,842 Covered payroll 32,329 106,953 295,758 307,014
Proportionate share of the net pension liability
as a percentage of covered payroll 1.29% -0.79% 0.07% 1.25% Plan fiduciary net position as a percentage of the
total pension liability 83.01% 149.81% 98.64% 89.10%
Safety
Proportion of the net pension liability 0.03180% 0.04683% 0.05637% 0.05612% Proportionate share of the net pension liability $ 1,978,889 $ 1,929,584 $ 2,919,427 $ 3,353,532 Covered payroll 860,036 909,068 890,370 910,448
Proportionate share of the net pension liability
as a percentage of covered payroll 230.09% 212.26% 327.89% 368.34% Plan fiduciary net position as a percentage of the
total pension liability 81.42% 82.46% 75.69% 73.76%
Safety PEPRA
Proportion of the net pension liability 0.00000% 0.00001% 0.00003% 0.00008% Proportionate share of the net pension liability $ 12 $ (312) $ 1,562 $ 4,688 Covered payroll 43,053 48,981 104,559 105,369
Proportionate share of the net pension liability
as a percentage of covered payroll 0.03% -0.64% 1.49% 4.45% Plan fiduciary net position as a percentage of the
total pension liability 80.95% 103.20% 92.51% 87.68%
* The City implemented GASB 68 for the fiscal year June 30, 2015, therefore only nine years are shown. -69-
Yreka City Council Agenda
April 16, 2024
2017/2018 2018/2019 2019/2020 2020/2021 2021/2022
0.13147% 0.13557% 0.13950% 0.19465% 0.10955%
$ 4,954,547 $ 5,428,694 $ 5,884,112 $ 3,696,100 $ 6,910,295 1,624,634 1,605,006 1,618,342 1,576,614 1,278,644
304.96% 338.24% 363.59% 234.43% 540.44%
76.11% 74.43% 73.18% 83.48% 70.59%
0.00007% 0.00021% 0.00044% -0.00150% 0.00279%
$ 2,578 $ 8,467 $ 18,706 $ (28,531) $ 36,532
483,923 620,488 746,534 861,936 1,337,805
0.53% 1.36% 2.51% -3.31% 2.73%
96.12% 93.89% 92.28% 107.72% 93.90%
0.05808% 0.05929% 0.06109% 0.07267% 0.05698%
$ 3,407,746 $ 3,701,061 $ 4,069,838 $ 2,550,230 $ 4,738,160 973,986 889,848 938,030 913,940 661,355
349.88% 415.92% 433.87% 279.04% 716.43%
73.77% 73.31% 72.49% 83.01% 70.38%
0.00007% 0.00012% 0.00019% -0.00011% 0.00900%
$ 4,172 $ 7,299 $ 12,794 $ (3,747) $ 2,314,802
121,049 177,102 186,154 219,378 364,320
3.45% 4.12% 6.87% -1.71% 635.38%
93.45% 92.59% 91.40% 102.62% 8.39%
-69-
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Required Supplementary Information
City Pension Plan
Schedule of Contributions
For the Year Ended June 30, 2023
Last 10 Years*
Fiscal Year 2014/2015 2015/2016 2016/2017 2017/2018
Miscellaneous
Contractually required contributions (actuarially determined) $ 172,274 $ 171,267 $ 222,568 $ 331,273 Contributions in relation to the actuarially determined contributions (172,274) (171,267) (222,568) (331,273)
Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 1,603,577 $ 1,532,020 $ 1,524,699 $ 1,624,634 Contributions as a percentage of covered payroll 10.74% 11.18% 14.60% 20.39% Miscellaneous PEPRA
Contractually required contributions (actuarially determined) $ 2,064 $ 6,596 $ 6,505 $ 32,068 Contributions in relation to the actuarially determined contributions (2,064) (6,596) (6,505) (32,068)
Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 106,953 $ 295,758 $ 307,014 $ 483,923 Contributions as a percentage of covered payroll 1.93% 2.23% 2.12% 6.63% Safety
Contractually required contributions (actuarially determined) $ 182,105 $ 182,568 $ 253,942 $ 283,769 Contributions in relation to the actuarially determined contributions (182,105) (182,568) (253,942) (283,769)
Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 909,068 $ 890,370 $ 910,448 $ 973,986 Contributions as a percentage of covered payroll 20.03% 20.50% 27.89% 29.13% Safety PEPRA
Contractually required contributions (actuarially determined) $ 5,154 $ 5,633 $ 9,567 $ 14,657 Contributions in relation to the actuarially determined contributions (5,154) (5,633) (9,567) (14,657)
Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 48,981 $ 104,559 $ 105,369 $ 121,049
Contributions as a percentage of covered payroll 10.52% 5.39% 9.08% 12.11% * The City implemented GASB 68 for the fiscal year June 30, 2015, therefore only nine years are shown. -70-
Yreka City Council Agenda
April 16, 2024
2018/2019 2019/2020 2020/2021 2021/2022 2022/2023
$ 394,947 $ 470,384 $ 525,137 $ 558,963 $ 622,309
(394,947) (470,384) (525,137) (558,963) (622,309)
$ - $ - $ - $ - $ -
$ 1,605,006 $ 1,618,342 $ 1,576,614 $ 1,278,644 $ 1,321,114
24.61% 29.07% 33.31% 43.72% 47.10%
$ 43,599 $ 55,191 $ 68,563 $ 105,965 $ 118,227
(43,599) (55,191) (68,563) (105,965) (118,227)
$ - $ - $ - $ - $ -
$ 620,488 $ 746,534 $ 861,936 $ 1,337,805 $ 1,622,282
7.03% 7.39% 7.95% 7.92% 7.29%
$ 316,062 $ 375,035 $ 394,723 $ 419,336 $ 464,812
(316,062) (375,035) (394,723) (419,336) (464,812)
$ - $ - $ - $ - $ -
$ 889,848 $ 938,030 $ 913,940 $ 661,355 $ 698,271
35.52% 39.98% 43.19% 63.41% 66.57%
$ 22,867 $ 25,888 $ 31,770 $ 50,317 $ 72,524
(22,867) (25,888) (31,770) (50,317) (72,524)
$ - $ - $ - $ - $ -
$ 177,102 $ 186,154 $ 219,378 $ 364,320 $ 568,485
12.91% 13.91% 14.48% 13.81% 12.76%
-70-
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Required Supplementary Information
City Pension Plan
Notes to City Pension Plan
For the Year Ended June 30, 2023
-71-
NOTE 1: SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY Summary of Changes of Benefits or Assumptions
Benefit Changes: None
Changes of Assumption: None
NOTE 2: SCHEDULE OF CONTRIBUTIONS
Methods and assumptions used to determine the contribution rates were as follows:
Valuation Date June 30, 2021
Actuarial cost method Individual Entry Age Normal
Amortization method Level Percentage of Payroll (Pre-2019 basis). Level Dollar Remaining Amortization Period Differs by employer rate plan but no more than 30 years Asset valuation method Fair value
Discount Rate 7.00%
Payroll Growth 2.75%
Inflation 2.50%
Salary increases Varies based on entry age and service
Investment rate of return 7.00%
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April 16, 2024
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Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Required Supplementary Information
City OPEB Plan
Schedule of Changes in the Net OPEB Liability and Related Ratios For the Year Ended June 30, 2023
Last 10 Years*
Measurement Date 2016/2017 2017/2018 2018/2019 2019/2020 Total OPEB Liability
Service Cost $ 61,524 $ 63,524 $ 50,734 $ 52,256
Interest 84,282 90,967 71,533 76,548
Difference between expected and actual experience - (354,506) - (174,296) Change of assumptions - (39,997) - 425
Benefit payments (44,431) (45,488) (46,880) (46,374)
Net Change in Total OPEB Liability 101,375 (285,500) 75,387 (91,441) Total OPEB Liability - Beginning 1,257,337 1,358,712 1,073,212 1,148,599 Total OPEB Liability - Ending (a) $ 1,358,712 $ 1,073,212 $ 1,148,599 $ 1,057,158 Plan Fiduciary Net Position
Contributions - employer $ 44,431 $ 640,362 $ 234,801 $ 252,743 Net investment income - (1,070) 53,584 51,907
Benefit payments (44,431) (45,488) (46,880) (46,374)
Administrative expenses - (109) (147) (461)
Net Change in Plan Fiduciary Net Position - 593,695 241,358 257,815 Plan Fiduciary Net Position - Beginning - - 593,695 835,053 Plan Fiduciary Net Position - Ending (b) $ - $ 593,695 $ 835,053 $ 1,092,868 Net OPEB Liability (Asset) - Ending (a) - (b) $ 1,358,712 $ 479,517 $ 313,546 $ (35,710) Plan fiduciary net position as a percentage of the total OPEB liability 0.00% 55.32% 72.70% 103.38%
Covered-employee payroll $ 3,537,524 $ 3,537,524 $ 3,261,752 $ 3,442,309 Net OPEB liability as a percentage of covered-employee payroll 38.41% 13.56% 9.61% -1.04% * The City implemented GASB 75 for the fiscal year June 30, 2018, therefore only six years are shown. -72-
Yreka City Council Agenda
April 16, 2024
2020/2021 2021/2022
$ 52,289 $ 53,858
69,392 73,555
- 268,955
- 90,708
(67,217) (50,174)
54,464 436,902
1,057,158 1,111,622
$ 1,111,622 $ 1,548,524
$ 193,368 $ 96,438
225,750 (187,520)
(67,217) (50,174)
(421) (373)
351,480 (141,629)
1,092,868 1,444,348
$ 1,444,348 $ 1,302,719
$ (332,726) $ 245,805
129.93% 84.13%
$ 3,571,115 $ 3,725,290
-9.32% 6.60%
-72-
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Required Supplementary Information
City OPEB Plan
Schedule of Contributions
For the Year Ended June 30, 2023
Last 10 Years*
Fiscal Year 2017/2018 2018/2019 2019/2020 2020/2021
Actuarially determined contributions $ 212,915 $ 86,272 $ 88,800 $ 91,397 Contributions in relation to the actuarially determined contribution (640,362) (242,423) (252,743) (193,368) Contribution deficiency (excess) $ (427,447) $ (156,151) $ (163,943) $ (101,971) Covered-employee payroll $ 3,537,524 $ 3,261,752 $ 3,442,309 $ 3,571,115 Contributions as a percentage of covered-employee payroll 18.10% 7.43% 7.34% 5.41% * The City implemented GASB 75 for the fiscal year June 30, 2018, therefore only six years are shown. -73-
Yreka City Council Agenda
April 16, 2024
2021/2022 2022/2023
$ 56,535 $ 54,681
(96,438) (77,026)
$ (39,903) $ (22,345)
$ 3,725,290 $ 4,874,774
2.59% 1.58%
-73-
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Required Supplementary Information
City OPEB Plan
Notes to City OPEB Plan
For the Year Ended June 30, 2023
-74-
NOTE 1: SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS
General Inflation Rate 2.5% per year
Salary Increase 3.0% per year
Spouse Coverage The percentage of retirees assumed to cover a spouse in retirement was assumed to be 70%.
Medical Trend Updated to use the Getzen healthcare trend model sponsored by the Society of Actuaries.
Excise Tax on High-Cost Coverage The excise tax was excluded from the results given the December 2019 repeal of this provision of the Affordable Care Act.
NOTE 2: SCHEDULE OF CONTRIBUTIONS
The actuarially determined contribution (ADC) developed for the City’s fiscal year ending June 30, 2023 was determined and presented in the June 30, 2022 Actuarial Valuation report.
Methods and Assumptions Used to Determine Contributions:
Actuarial cost method Entry Age Normal
Amortization method Level percent of pay
Amortization period 18 years
Asset valuation method Market
Discount rate 5.65%
Salary increases 3.00%
Inflation 2.50%
Healthcare cost trend rates 6.8% to 3.9% step 0.1%; PEMHCA min 4% Mortality improvement MW Scale 2022 generationally
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Required Supplementary Information
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2023
Actual Variance with
Amounts Final Budget
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)
REVENUES
Taxes and assessments $ 6,573,650 $ 6,573,650 $ 8,016,834 $ 1,443,184 Licenses and permits 189,900 189,900 313,461 123,561
Fines and forfeitures 250 250 (4,387) (4,637)
Use of money 70,800 70,800 193,670 122,870
Intergovernmental 348,418 798,034 1,050,859 252,825
Charges for services 50,825 50,825 58,003 7,178
Other revenues 16,500 16,500 165,547 149,047
Total Revenues 7,250,343 7,699,959 9,793,987 2,094,028
EXPENDITURES
Current:
General government 987,442 1,054,942 1,332,940 (277,998) Public safety 4,576,347 4,618,283 4,766,496 (148,213)
Public ways and facilities 150,103 164,103 92,004 72,099 Culture and recreation 574,386 574,386 480,135 94,251
Community development 557,000 583,500 771,685 (188,185) Debt service:
Principal 35,000 35,000 76,971 (41,971)
Interest and other charges 90,895 90,895 91,462 (567)
Capital outlay 72,500 72,500 107,338 (34,838)
Total Expenditures 7,043,673 7,193,609 7,719,031 (525,422) Excess of Revenues Over (Under) Expenditures 206,670 506,350 2,074,956 1,568,606
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets - - 79,235 79,235
Debt proceeds 88,686 88,686
Transfers out (589,867) (589,867) (898,705) (308,838)
Total Other Financing Sources (Uses) (589,867) (589,867) (730,784) (140,917) Net Change in Fund Balances (383,197) (83,517) 1,344,172 1,427,689 Fund Balances - Beginning 10,804,223 10,804,223 10,804,223 - Fund Balances - Ending $10,421,026 $10,720,706 $12,148,395 $ 1,427,689 -75-
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Required Supplementary Information
Budgetary Comparison Schedule
Streets and Roads - Major Special Revenue Fund
For the Year Ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)
REVENUES
Fines and forfeitures $ 15,000 $ 15,000 $ 13,457 $ (1,543) Use of money 3,500 3,500 26,489 22,989
Intergovernmental 614,500 614,500 1,048,618 434,118
Other revenues - - 11,087 11,087
Total Revenues 633,000 633,000 1,099,651 466,651
EXPENDITURES
Current:
Public ways and facilities 887,867 901,597 1,029,190 (127,593) Transportation 200,000 200,000 198,468 1,532
Debt service:
Principal 90,000 26,270 - 26,270
Interest and other charges 5,000 5,000 - 5,000
Capital outlay 40,000 90,000 45,613 44,387
Total Expenditures 1,222,867 1,222,867 1,273,271 (50,404) Excess of Revenues Over (Under) Expenditures (589,867) (589,867) (173,620) 416,247
OTHER FINANCING SOURCES (USES)
Transfers in 589,867 589,867 589,865 (2)
Total Other Financing Sources (Uses) 589,867 589,867 589,865 (2) Net Change in Fund Balances - - 416,245 416,245
Fund Balances - Beginning 1,011,475 1,011,475 1,011,475 - Fund Balances - Ending $ 1,011,475 $ 1,011,475 $ 1,427,720 $ 416,245 -76-
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Required Supplementary Information
Budgetary Comparison Schedule
Special Revenue - Major Special Revenue Fund
For the Year Ended June 30, 2023
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)
REVENUES
Taxes and assessments $ 305,000 $ 305,000 $ 331,988 $ 26,988 Licenses and permits 16,000 16,000 32,934 16,934
Use of money 2,500 2,500 39,872 37,372
Charges for services 240,000 240,000 241,135 1,135
Other revenues - - - -
Total Revenues 563,500 563,500 645,929 82,429
EXPENDITURES
Current:
General government 65,000 65,000 (33,466) 98,466
Public safety 15,000 15,000 - 15,000
Debt service:
Principal 185,708 189,770 189,772 (2)
Interest and other charges 80,018 75,956 75,956 -
Capital outlay - - 71,573 (71,573)
Total Expenditures 345,726 345,726 303,835 41,891
Excess of Revenues Over (Under) Expenditures 217,774 217,774 342,094 124,320
OTHER FINANCING SOURCES (USES)
Transfers out (9,500) (9,500) (25,285) (15,785)
Total Other Financing Sources (Uses) (9,500) (9,500) (25,285) (15,785) Net Change in Fund Balances 208,274 208,274 316,809 108,535 Fund Balances - Beginning 1,277,626 1,277,626 1,277,626 - Fund Balances - Ending $ 1,485,900 $ 1,485,900 $ 1,594,435 $ 108,535 -77-
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Required Supplementary Information
Notes to Budgetary Comparison Schedules
For the Year Ended June 30, 2023
-78-
NOTE 1: BUDGETARY BASIS OF ACCOUNTING
Formal budgetary integration is employed as a management control device during the year. The City presents a comparison of annual budget to actual results for the General fund and major special revenue funds. The amounts reported on the budgetary basis are generally on a basis consistent with accounting principles generally accepted in the United States of America (GAAP).
The City follows these procedures annually in establishing the budgetary data reflected in the financial statements:
(1) The City Manager submits to the City Council a recommended draft budget for the fiscal year commencing the following July 1. The budget includes recommended expenditures and the means of financing them.
(2) The City Council reviews the recommended budget at regularly scheduled meetings, which are open to the public. The Council also conducts a public hearing on the recommended budget to obtain comments from interested persons.
(3) Prior to July 1, the budget is adopted through the passage of a resolution. (4) From the effective date of the budget, which is adopted and controlled at the department level, the amounts stated therein, as recommended expenditures become appropriations to the various City departments. The City Council may amend the budget by motion during the fiscal year. The City Manager may authorize transfers from one object or purpose to another within the same department.
The City does not use an encumbrance system as an extension of normal budgetary accounting for the General and other governmental funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations.
NOTE 2: EXPENDITURES IN EXCESS OF APPROPRIATIONS
For the fiscal year ended June 30, 2023, the City incurred expenditures in excess of appropriations as follows:
Appropriations Expenditures
Excess of
Expenditures
Over
Appropriations
General fund $ 7,193,609 $ 7,719,031 $ 525,422
Streets and Roads fund 1,222,867 1,273,271 50,404
Yreka City Council Agenda
April 16, 2024
CERTIFIED PUBLIC ACCOUNTANTS
950 THARP ROAD, SUITE 502 YUBA CITY, CA 95993 TEL: (530) 673-9790 FAX: (530) 673-1305 [email protected]
SMITH & NEWELL
INDEPENDENT AUDITOR’S MANAGEMENT LETTER
To the Honorable Mayor and Members of the City Council
City of Yreka
Yreka, California
In planning and performing our audit of the financial statements of the City of Yreka, (City) as of and for the year ended June 30, 2023, 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, we considered the City’s internal control over financial reporting (internal control) as a basis for designing auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion 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.
However, during our audit we became aware of matters that are opportunities for strengthening internal controls and operating deficiency. The appendix that accompanies this letter summarizes our comments and suggestions regarding those matters. This letter does not affect our report dated March 13, 2024 on the financial statements of the City.
We will review the status of these comments during our next audit engagement. We have already discussed many of these comments and suggestions with City management, and we will be pleased to discuss them in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations.
This communication is intended solely for the information and use of management and the City Council, and is not intended to be, and should not be, used by anyone other than these specified parties.
Smith & Newell CPAs
Yuba City, California
March 13, 2024
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CITY OF YREKA
Appendix A: Management Letter Comments
For the Year Ended June 30, 2023
CURRENT YEAR FINDING AND RECOMMENDATION
Debt Reserve Requirement
Criteria
The USDA COP loan requires that the City set aside 10% of one annual installment payment per year for ten years or until the balance is equal to one installment.
Condition
The City had not set aside the reserve requirement.
Cause
The City has had staff turnover.
Effect
The City is not in compliance with the COP loan agreement.
Questioned Cost
No questioned costs were identified as a result of our procedures.
Context
We reviewed the loan requirements of City debt.
Repeat Finding
This is not a repeat finding.
Recommendation
We recommend that the City establish a loan reserve.
Views of Responsible Officials and Planned Corrective Action Refer to separate Management’s Corrective Action Plan for views of responsible officials and management’s responses.
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA
Appendix B: Management’s Corrective Action Plan
For the Year Ended June 30, 2023
Debt Reserve Requirement
We recommend that the City establish a loan reserve.
Management’s Response: The City does have an established loan reserve. Unfortunately, it was slightly less than the required reserve. The newly acquired loan had an additional requirement of reserve in addition to the 10% requirement.
Responsible Individual: The Finance Director is responsible for reviewing loan requirements and establishing an appropriate loan reserve balance.
Corrective Action Plan: The Finance Director will establish a loan reserve balance for one full installment payment plus the additional required amount.
Anticipated Completion Date: Immediately
Yreka City Council Agenda
April 16, 2024
CITY OF YREKA,
CALIFORNIA
SINGLE AUDIT ACT
REPORTS AND SCHEDULES
FOR THE YEAR ENDED
JUNE 30, 2023
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CITY OF YREKA
Single Audit Act
For the Year Ended June 30, 2023
Table of Contents
Page
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards............................................................................1-2 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance.................................................3-5 Schedule of Expenditures of Federal Awards for the Year Ended June 30, 2023 ........................................ 6 Notes to Schedule of Expenditures of Federal Awards .............................................................................7-8 Schedule of Findings and Questioned Costs............................................................................................9-12 Schedule of Prior Year Findings and Questioned Costs............................................................................. 13 Management’s Corrective Action Plan ....................................................................................................... 14 Yreka City Council Agenda
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CERTIFIED PUBLIC ACCOUNTANTS
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950 THARP ROAD, SUITE 502 YUBA CITY, CA 95993 TEL: (530) 673-9790 FAX: (530) 673-1305 [email protected]
SMITH & NEWELL
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of the City Council
City of Yreka
Yreka, 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 Yreka, California, (City) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated March 13, 2024.
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 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 2023-001 through 2023-003 that we consider to be significant deficiencies.
Yreka City Council Agenda
April 16, 2024