Yreka City Council
May 6, 2025

Corey Middleton, Mayor
Paul McCoy, Mayor Pro tempore
Colleen Baker, Councilmember
Drake Davis, Councilmember
James Clair, Councilmember
Jason Ledbetter, City Manager
Juliana Lucchesi, Asst. City Manager
Emily Aldrich, Finance Director
Matthew Bray, Public Works Director
John Elsnab, Human Resources Director
Cyndy Prohaska, City Clerk
Mark Gilman, Police Chief
Jerry Lemos, Fire Chief
Andrew Jared, City Attorney

YREKA CITY COUNCIL MEETING AGENDA
May 6, 2025
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.yrekaca.gov/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, and 24 hours before each special 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.yrekaca.gov/AgendaCenter.

Please note the following change to the City’s public comment procedures: Unless a Councilmember is participating in the meeting remotely pursuant to Government Code section 54953(f), 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 CLOSED SESSION:

2. PUBLIC COMMENT ON CLOSED SESSION ITEMS:

Public participation is limited to those items listed for closed session.

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.

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
May 6, 2025

• 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.

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—potential litigation (City initiating) (Govt C §54956.9(d)(4)) - Number of cases: 1
b. Conference with Labor Negotiator Government Code §54957.6(a) Agency Negotiator: Human Resources Director
Agency Organization: Unrepresented Employees

4. 6:30PM CALL TO ORDER REGULAR SESSION AND PLEDGE OF ALLEGIANCE:

5. ROLL CALL:

6. APPROVAL OF THE AGENDA:

7. PRESENTATIONS:
 Greenhorn Reservoir Fuels Reduction – Sarah Chaffee, Resiliency Planner  Farewell to the Community – Jason Ledbetter

8. 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 Yreka City Council Agenda
May 6, 2025

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.

9. 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 23, 2025, through April 25, 2025. b. Cash Balances, Budget to Actual and Fiscal Performance Reports for March 2025. c. Quarterly Investment Report Ending March 31, 2025.
d. Approval of Minutes of the Regular Meeting held April 15, 2025. e. Approval of the Minutes of the Special Meeting held April 24, 2025. f. Approve the Transportation Claim for the Local Transportation Fund for Fiscal Year 2025-2026 and Authorize the Mayor to Sign the Claim on Behalf of the City. g. Approval of Resolution 2025-15 of the City Council of the City of Yreka Vacating a City Easement located at 412 West Miner Street, Yreka, California, Assessor’s Parcel Number 053-352-160-000, by Title only.
h. Acceptance of the City of Yreka’s Audited Financial Statement for Fiscal Year 2023-2024.

Recommended City Council Action: Motion to Adopt the Consent Agenda of the City Council of the City of Yreka as presented.

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.

Yreka City Council Agenda
May 6, 2025

11. CITY BUSINESS:

City Attorney
a. Agenda Title: Discussion/Possible Action on the Appointment of John Elsnab as Interim City Manager, Approve Employment Agreement.

Recommended City Council Action: Motion to Approve Employment Agreement with John Elsnab as Interim City Manager.

City Manager
b. Agenda Title: Discussion / Possible Action on a Motion to Approve a Funding Agreement with the Yreka Community Resource Center to Support Public Benefit Activities in an Amount not to Exceed $48,040 Annually.

Recommended City Council Action: Motion to Approve the Attached Funding Agreement with the Yreka Community Resource Center in an Amount not to Exceed $48,040 Annually and to Authorize the City Manager to Execute the Attached Agreement.

Assistant City Manager / Community Development Director & Resilience Planner c. Agenda Title: Back-Up Generator for Power Resilience Project Recommended City Council Action: Motion to Adopt Resolution 2025-16 of the City Council of the City of Yreka Approving the City Hall Emergency Backup Generator Project, Appropriating Funds, and Adopting a California Quality Act Exemption.

City Attorney
d. Agenda Title: Appointment of Mayor and Mayor Pro Tempore.

Recommended City Council Action: Conduct Selection of Mayor and Mayor Pro Tempore Pursuant to Process Adopted in Ordinance 880.

City Clerk
d. Agenda Title: Swearing in of Mayor and Mayor Pro Tempore

12. CITY MANAGER/STAFF REPORTS:

City Manager and Staff may make brief announcements or reports at this time.

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.) Members of the Council may make brief announcements, reports, or request staff to report to the Council on any matter at a subsequent meeting.

14. ADJOURNMENT:

Yreka City Council Agenda
May 6, 2025

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 May 6, 2025 to the members of the governing agency, and caused the agenda to be posted on the City’s website at www.yrekaca.gov 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 Debits Credits Fund General-Unrestricted 01 General Operating $ 10,516,113.13 $ 482,197.72 $ 1,971,123.22 $ 9,027,187.63 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 20,860.60 - - 20,860.60 General-Designated 02 K-9 Unit - - - 0.00
General-Designated 02 YPD Donated - Hitson 7,491.82 - - 7,491.82 General-Designated 02 YPD Donated - Travellers 741.68 - - 741.68 General-Designated 02 YPD Donated - Teen Fund 3,956.43 - - 3,956.43 General-Designated 03 YVFD Volunter Fund (0.00) - - (0.00) General-Restricted 04 Crandell Cash 443,647.89 - - 443,647.89 General-Restricted 05 Property Abatement Recovery (315,782.31) 100,000.00 - (215,782.31) General-Designated 08 Grant Projects Reserve 1,526,104.93 42,708.00 - 1,568,812.93 General-Designated 08 PERS Pension Liability Reserve - - - 0.00 General-Designated 09 Reserves for Cap. Outlay 592,842.60 - - 592,842.60 General-Designated 10 Capital Outlay (484,420.88) - - (484,420.88) General-Designated 11 Capital Building Project - YPD 28,717.81 11,629.00 25,406.62 14,940.19 General - All General-Designated 12 Debt Servicing - GF (YPD Bldg) 347,200.60 126,375.00 - 473,575.60 General-Designated 12 Debt Servicing Reserves - GF (YPD Bldg) 200,000.00 - - 200,000.00 General-Designated 90 Payroll Clearing (851,739.35) 785,331.03 650,057.18 (716,465.50) $ 10,997,379.35 Spec. Rev. -Streets 20 Road and Street Funds including HUTA 306,096.46 883,764.52 47,322.24 1,142,538.74 Spec. Rev. -Streets 21 Local Transportation 1,032,828.13 - 60,000.00 972,828.13 Streets Spec. Rev. -Streets 24 Fines - Traffic Safety 197,746.21 65,618.75 5,234.15 258,130.81 $ 2,373,497.68 Special Revenue 30 Fire Assessment Spec. Rev 1,367,939.34 27,991.16 7,584.27 1,388,346.23 Special Revenue 31 Landfill Access Fee - Debt Service 74,605.14 20,162.22 3,061.80 91,705.56 Special Revenues Special Revenue 32 Developer Impact Fees 298,555.30 - - 298,555.30 $ 1,778,607.09 Solid Waste 50 Solid Waste Operating 390,956.38 13,807.94 3,051.63 401,712.69 Solid Waste Solid Waste 51 Solid Waste Capital Projects (419,932.56) - - (419,932.56) $ (18,219.87) Special Grants 60 Spec Grants Capital Outlay 667,298.52 20,000.00 148,533.73 538,764.79 Special Grants Special Grants 65 Community Development Grants 243,427.05 150,796.43 - 394,223.48 SpecialOperating 67 SUMIT Operating 409,910.75 - - 409,910.75 $ 1,342,899.02 Water Enterprise 70 Water Operating (1,676,163.74) 260,010.69 268,607.62 (1,684,760.67) Water Enterprise 71 Water Capital Projects 5,972,012.44 - 88,131.85 5,883,880.59 Water Enterprise 72 Water Debt Servicing 530,167.26 - 7,187.66 522,979.60 Water Enterprise 72 USDA COPS 2010 300,000.00 - - 300,000.00 Water Enterprise Water Enterprise 74 Water Reserves 3,842,640.23 52,915.67 - 3,895,555.90 $ 8,917,655.42 Sewer Enterprise 80 Sewer Operating (848,484.90) 283,507.64 254,942.54 (819,919.80) Sewer Enterprise 81 Sewer Capital Outlay 1,552,938.14 - 374,511.07 1,178,427.07 Sewer Enterprise 82 Sewer Debt Servicing (448,078.70) - - (448,078.70) Sewer Enterprise 82 USDA COPS 2003 610,000.00 - - 610,000.00 Enterprise-Sewer Sewer Enterprise 84 Sewer Reserves 4,630,944.86 69,605.98 - 4,700,550.84 $ 5,220,979.41 Agency
Agency 92 Agency SUMIT - Cash 3,717.17 - - 3,717.17 $ 3,717.17 COLUMN TOTALS $ 31,134,849.10 $ 3,396,421.75 $ 3,914,755.58 $ 30,616,515.27 $ 30,616,515.27 -
BANK RECAPITULATION PER BANK Market Value Unrealized Gain PER LEDGER L.A.I.F. 0.861% 25,217,627.46 24,892,960.95 (324,666.51) Pershing Bank - CD & Treas Investments 3,185,000.00 3,181,927.70 (3,072.30) Pershing Bank - Cash 278,212.66
Petty Cash Drawers 1,200.00
YVFD Petty Cash -
Banner Bank (DDA for Bank Anticipation Not -
MB SUMIT Operating x2233 412,460.84
MB SUMIT Asset Forfeiture X4281 3,707.71
Mechanics Bank - ZBA x6830 -
Mechanics Bank - MM x6505 505,556.77
Mechanics Bank - 01015102 1,159,484.97
TOTAL PER BANK 30,763,250.41

ADJUSTMENTS
Less Outstanding Checks MB (88,802.37)
Less Outstanding Checks SVB SUMIT (2,550.09)
Interest CR (GL ) (11.26)
XFER Jan 10,510.53
AFLAC (144.77)
Health (0.26)
BRMS 15.32
PERS 124.88
JE Retiree Dental R. Buker 107.01
Unreconciled Diff 558.04
Business License Adj. 5 Yreka Inc. (27,772.74)
Mechanics Money Market 6505 Jan (1,907.43)
Mechanics Money Market 6505 Feb (1,728.76)
Mechanics Money Market 6505 March (1,920.58)
MBSC Interest - Jan (8,031.14)
MBSC Interest - Feb (9,304.07)
MBSC Interest - March (15,877.45)
TOTAL PER LEDGER 30,616,515.27 30,616,515.27
(0.00)
City Mayor
Emily Aldrich, Finance Director

CITY OF YREKA

REPORT ON CASH TO THE CITY COUNCIL
Mar-2025
Yreka City Council Agenda
May 6, 2025

2024-2025 Operating Budget of Revenue and Expenditures
with Year to Date Actual Results March 31, 2025
Fund Analysis
Major 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 9,656,784.50 10,755,895.96 7,076,786.39 9,606,592.15 10,546,445.95 7,993,059.01 209,450.01 (916,272.62) 9,087,178.30 General Operating Fund 9,656,784.50 10,755,895.96 7,076,786.39 9,606,592.15 10,546,445.95 7,993,059.01 209,450.01 (916,272.62) 9,087,178.30 Gifts Donations 02 - - 621.48 1,500.00 7,500.00 2,138.25 (7,500.00) (1,516.77) 33,050.53 Trusts -Crandell-Stewart 04 - - 9,543.13 2,300.00 2,300.00 2,279.78 (2,300.00) 7,263.35 443,647.89 Property Abatement 05 - 110,000.00 100,000.00 - 110,000.00 145,555.79 - (45,555.79) (215,782.31) General Fund Reserves 08 376,000.00 - 68,875.71 376,000.00 - - - 68,875.71 1,568,812.93 Reserves for Cap. Outlay 09 - - 7,999.44 - - - - 7,999.44 592,842.60 Capital Outlay 10 75,000.00 95,000.00 29,272.63 75,000.00 95,000.00 - - 29,272.63 (484,420.88) Construction Fund 11 - - 42,747.96 - - 27,854.36 - 14,893.60 14,940.19 General Fund Debt Servicing 12 126,375.00 126,375.00 126,375.00 126,375.00 126,375.00 44,493.75 - 81,881.25 673,575.60 Payroll Clearing 90 - - - - - 123,126.04 - (123,126.04) (716,465.50) General Fund - Restricted or Designated 577,375.00 331,375.00 385,435.35 581,175.00 341,175.00 345,447.97 (9,800.00) 39,987.38 1,910,201.05 Total General Fund 10,234,159.50 11,087,270.96 7,462,221.74 10,187,767.15 10,887,620.95 8,338,506.98 199,650.01 (876,285.24) 10,997,379.35 Gas Tax & Traffic Cong. 20 1,174,786.35 1,251,257.93 1,196,753.15 1,174,786.35 1,251,257.93 767,519.48 - 429,233.67 1,142,538.74 Local Transportation 21 200,000.00 128,264.00 204,231.20 200,000.00 128,264.00 233,946.00 - (29,714.80) 972,828.13 Fines - Traffic Safety 24 76,320.14 82,819.12 78,572.98 76,320.14 82,819.12 39,184.66 - 39,388.32 258,130.81 Road, Street & Transit - Restricted 1,451,106.49 1,462,341.05 1,479,557.33 1,451,106.49 1,462,341.05 1,040,650.14 - 438,907.19 2,373,497.68 Total Road, Streets and Transit 1,451,106.49 1,462,341.05 1,479,557.33 1,451,106.49 1,462,341.05 1,040,650.14 - 438,907.19 2,373,497.68 Fire Assessment Spec. Rev 30 353,000.00 374,000.00 288,607.21 105,726.24 345,726.24 167,290.97 28,273.76 121,316.24 1,388,346.23 Landfill Access Fee - Debt Service 31 240,000.00 241,000.00 182,800.07 240,000.00 241,000.00 201,565.60 - (18,765.53) 91,705.56 Developer Impact Fees 32 26,000.00 366,500.00 34,464.03 9,500.00 24,745.00 - 341,755.00 34,464.03 298,555.30 Special Revenue - Restricted 619,000.00 981,500.00 505,871.31 355,226.24 611,471.24 368,856.57 370,028.76 137,014.74 1,778,607.09 Total Special Revenue 619,000.00 981,500.00 505,871.31 355,226.24 611,471.24 368,856.57 370,028.76 137,014.74 1,778,607.09 Spec Grants Capital Outlay 60 1,075,000.00 1,565,000.00 148,867.78 1,075,000.00 1,629,500.00 1,771,078.24 (64,500.00) (1,622,210.46) 538,764.79 Community Development Grants 65 600.00 645,800.00 167,617.54 15,000.00 660,317.92 257,491.10 (14,517.92) (89,873.56) 394,223.48 SUMIT Operating Fund 67 - - - - 200,000.00 - (200,000.00) - 409,910.75 Special Grants - Capital Projects 1,075,600.00 2,210,800.00 316,485.32 1,090,000.00 2,489,817.92 2,028,569.34 (279,017.92) (1,712,084.02) 1,342,899.02 p p g Capital Projects 1,075,600.00 2,210,800.00 316,485.32 1,090,000.00 2,489,817.92 2,028,569.34 (279,017.92) (1,712,084.02) 1,342,899.02 Solid Waste Operating 50 - - - - 13,738.22 23,925.99 - (23,925.99) 401,712.69 Solid Waste Capital Projects 51 - - - - - - - - (419,932.56) Solid Waste - - - - 13,738.22 23,925.99 - (23,925.99) (18,219.87) Solid Waste - - - - 13,738.22 23,925.99 - (23,925.99) (18,219.87) Water Operating 70 3,904,090.73 2,800,323.84 1,990,880.21 3,904,090.73 3,922,579.82 2,304,445.08 (1,122,255.98) (313,564.87) (1,684,760.67) Water Capital Projects 71 3,634,000.00 5,356,053.99 2,453,907.00 2,856,358.00 5,356,053.99 454,942.71 - 1,998,964.29 5,883,880.59 Water Debt Servicing 72 356,348.17 348,848.17 - 348,848.17 348,848.17 62,349.19 - (62,349.19) 822,979.60 Water Reserves 74 199,384.82 894,089.81 796,147.82 - - - 894,089.81 796,147.82 3,895,555.90 Water Enterprise 8,093,823.72 9,399,315.81 5,240,935.03 7,109,296.90 9,627,481.98 2,821,736.98 (228,166.17) 2,419,198.05 8,917,655.42 Sewer Operating 80 3,282,585.16 2,734,905.18 1,810,957.51 3,282,585.16 3,112,524.82 1,794,041.39 (377,619.64) 16,916.12 (819,919.80) Sewer Capital Outlay 81 1,049,982.00 5,299,982.00 5,655,349.00 1,049,982.00 5,299,982.00 2,885,204.08 - 2,770,144.92 1,178,427.07 Sewer Debt Servicing 82 401,589.00 402,539.00 - 400,455.00 402,539.00 310,063.75 - (310,063.75) 161,921.30 Sewer Reserves 84 (456,712.98) (904,427.18) 689,887.38 - - - (904,427.18) 689,887.38 4,700,550.84 Sewer Enterprise Fund 4,277,443.18 7,532,999.00 8,156,193.89 4,733,022.16 8,815,045.82 4,989,309.22 (1,282,046.82) 3,166,884.67 5,220,979.41 Total Enterprise Funds 12,371,266.90 16,932,314.81 13,397,128.92 11,842,319.06 18,442,527.80 7,811,046.20 (1,510,212.99) 5,586,082.72 14,138,634.83 SUMIT Agency Trust - Cash 92 - - - - - - - - 3,717.17
Agency Funds - - - - - - - - 3,717.17 \
Total Agency Funds - - - - - - - - 3,717.17
All Funds Combined 25,751,132.89 32,674,226.82 23,161,264.62 24,926,418.94 33,907,517.18 19,611,555.22 (1,219,552.14) 3,549,709.40 30,616,515.27 Excess of Rev over Exp.-Surplus/
R E V E N U E E X P E N S E (Deficit)
Approval:______________________________________________________City Mayor 4/22/2025 8:27 AM Yreka City Council Agenda May 6, 2025

City of Yreka Financial Statement Groupings
Summary FY 24-25 YTD Fiscal Performance
as of March 31, 2025
ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt

1. GENERAL FUNDSRevenue
801 REVENUE: PROP TAXES 1,409,333.00 1,585,845.00 915,555.82 -670,289.18807 MVLF IN LIEU 740,000.00 433,290.36 -418,463.64 851,754.00810 SALES TAX 4,392,000.00 4,392,000.00 2,459,684.34 -1,932,315.66813 REVENUE: TOT TAXES 1,200,000.00 1,005,047.72 -194,952.28 1,200,000.00814 REVENUE: FRANCHISE FEES 300,000.00 285,494.70 -14,505.30 300,000.00815 REVENUE - LICENSES AND PERMITS 260,700.00 207,846.09 -130,353.91 338,200.00825 REVENUE - FINES & FORFEITURES 250.00 10,438.56 10,188.56 250.00830 REVENUE - USE OF MONEY & PROPERTY 160,800.00 469,732.28 248,932.28 220,800.00850 REVENUE - INTERGOVERNMENTAL 1,101,616.50 1,309,579.96 1,143,599.62 -165,980.34870 REVENUE - USER FEES AND CHARGES 65,150.00 45,086.90 -55,063.10 100,150.00880 ICA ALLOCATION 598,310.00 432,000.00 -45,692.00 477,692.00882 REVENUE - OTHER 6,000.00 25,172.72 19,172.72 6,000.00883 GAIN (LOSS) ON SALE OF ASSETS 0.00 29,272.63 29,272.63 0.00898 INTERFUND TRANSFERS 0.00 0.00 -305,000.00 305,000.00

1. GENERAL FUNDS Revenue Totals 10,234,159.50 11,087,270.96 7,462,221.74 -3,625,049.22Expense 100 MAYOR, COUNCIL, CITY MANAGER, CLERK 677,910.94 706,013.63 415,022.57 290,991.06110 EXP. GENERAL GOVERNMENT 1,419,562.75 1,160,469.41 1,438,371.85 -277,902.44130 PUBLIC SAFETY CODE ENFORCEMENT 173,214.92 291,004.35 -5,330.28 285,674.07 Tuesday, April 22, 2025 Page 1 of 9
Yreka City Council Agenda May 6, 2025

ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
200 PUBLIC SAFETY - POLICE 4,531,653.76 4,965,804.20 2,996,854.83 1,968,949.37210 PUBLIC SAFETY - FIRE 785,720.55 437,425.11 383,075.65 820,500.76215 PUBLIC SAFETY - HAZARD MITIGATION 0.00 104,341.73 55,690.24 160,031.97220 PLANNING AND DEVELOPMENT 964,305.38 736,626.71 304,946.03 1,041,572.74300 PUBLIC WORKS - ENGINEERING AND ADMIN 110,381.21 48,963.10 65,591.14 114,554.24350 PUBLIC WORKS - MECHANICAL MAINT (ELIM) 0.00 499,298.55 -499,298.55 0.00370 PUBLIC WORKS - SERVICE CENTER (ELIM) 0.00 36,697.52 -36,697.52 0.00400 CULTURAL & REC - PARKS AND REC 537,936.15 302,497.31 261,050.57 563,547.88600 COMMUNITY DEVELOPMENT 0.00 90,978.19 -90,978.19 0.00645 CAPITAL OUTLAY 75,000.00 27,854.36 47,145.64 75,000.00740 PRINCIPAL ON LT DEBT 38,000.00 0.00 38,000.00 38,000.00745 INTEREST ON LT DEBT 88,375.00 44,493.75 43,881.25 88,375.00760 INTERFUND TRANSFERS 785,706.49 868,077.05 0.00 868,077.05

1. GENERAL FUNDS Expense Totals 10,187,767.15 10,887,620.95 8,338,506.98 2,549,113.971. GENERAL FUNDS Net Position Change 46,392.35 199,650.01 -876,285.24 -1,075,935.25 Tuesday, April 22, 2025 Page 2 of 9
Yreka City Council Agenda May 6, 2025

ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 1. GENERAL FUNDS (1148 detail records)2. STREETS FUNDSRevenue 825 REVENUE - FINES & FORFEITURES 15,000.00 15,000.00 10,800.74 -4,199.26830 REVENUE - USE OF MONEY & PROPERTY 6,500.00 40,170.50 27,170.50 13,000.00850 REVENUE - INTERGOVERNMENTAL 632,900.00 536,509.04 -38,754.96 575,264.00882 REVENUE - OTHER 0.00 44,000.00 44,000.00 0.00887 REVENUE: INKIND 11,000.00 0.00 -11,000.00 11,000.00898 INTERFUND TRANSFERS 785,706.49 848,077.05 848,077.05 0.00

2. STREETS FUNDS Revenue Totals 1,451,106.49 1,462,341.05 1,479,557.33 17,216.28Expense 300 PUBLIC WORKS - ENGINEERING AND ADMIN 86,740.04 86,480.00 41,696.36 44,783.64310 PUBLIC WORKS - STREET MAINTENANCE 624,379.69 180,230.46 402,091.02 582,321.48311 PUBLIC WORKS - STREET SWEEPING 108,579.77 34,857.33 58,147.68 93,005.01312 PUBLIC WORKS - STREET LIGHTING 71,121.10 33,370.89 29,245.91 62,616.80313 PUBLIC WORKS - WEED CONTROL STREETS 7,545.43 2,767.13 12,445.21 15,212.34314 PUBLIC WORKS - PUBLIC PARKING LOTS 1,974.35 2,037.65 493.22 1,544.43315 PUBLIC WORKS - STREETSCAPE MAINTENANCE 0.00 28,297.14 24,993.07 53,290.21320 PUBLIC WORKS - TRAFFIC SAFETY 76,320.14 39,184.66 43,634.46 82,819.12340 TRANSPORTATION 200,000.00 233,946.00 -105,682.00 128,264.00390 PUBLIC WORKS - STORM DRAINS 184,445.97 99,526.18 95,768.26 195,294.44645 CAPITAL OUTLAY 90,000.00 346,280.77 -185,280.77 161,000.00

2. STREETS FUNDS Expense Totals 1,451,106.49 1,462,341.05 1,040,650.14 421,690.912. STREETS FUNDS Net Position Change 0.00 0.00 438,907.19 438,907.19 Tuesday, April 22, 2025 Page 3 of 9
Yreka City Council Agenda May 6, 2025

ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 2. STREETS FUNDS (329 detail records)3. SPECIAL REVENUE FUNDSRevenue 811 OTHER TAXES 335,000.00 346,000.00 260,255.05 -85,744.95815 REVENUE - LICENSES AND PERMITS 26,000.00 28,064.49 -338,435.51 366,500.00830 REVENUE - USE OF MONEY & PROPERTY 18,000.00 34,751.70 6,751.70 28,000.00870 REVENUE - USER FEES AND CHARGES 240,000.00 182,800.07 -58,199.93 241,000.00

3. SPECIAL REVENUE FUNDS Revenue Totals 619,000.00 981,500.00 505,871.31 -475,628.69Expense 100 COLLECTION EXPENSE 65,000.00 66,000.00 26,565.60 39,434.40210 PUBLIC SAFETY - FIRE 15,000.00 30,830.30 14,169.70 45,000.00645 CAPITAL OUTLAY 0.00 68,415.99 141,584.01 210,000.00740 PRINCIPAL ON LT DEBT 203,719.66 181,410.54 22,309.12 203,719.66745 INTEREST ON LT DEBT 62,006.58 61,634.14 372.44 62,006.58760 INTERFUND TRANSFERS 9,500.00 0.00 24,745.00 24,745.00

3. SPECIAL REVENUE FUNDS Expense Totals 355,226.24 611,471.24 368,856.57 242,614.673. SPECIAL REVENUE FUNDS Net Position Change 263,773.76 370,028.76 137,014.74 -233,014.02 Tuesday, April 22, 2025 Page 4 of 9
Yreka City Council Agenda May 6, 2025

ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 3. SPECIAL REVENUE FUNDS (45 detail records)4. CAPITAL & CDBG GRANTSRevenue 830 REVENUE - USE OF MONEY & PROPERTY 600.00 800.00 7,496.80 6,696.80850 REVENUE - INTERGOVERNMENTAL 1,075,000.00 283,988.52 -1,556,011.48 1,840,000.00882 REVENUE - OTHER 0.00 5,000.00 5,000.00 0.00898 INTERFUND TRANSFERS 0.00 20,000.00 -350,000.00 370,000.00

4. CAPITAL & CDBG GRANTS Revenue Totals 1,075,600.00 2,210,800.00 316,485.32 -1,894,314.68Expense 220 PLANNING AND DEVELOPMENT 0.00 0.00 0.00 0.00600 COMMUNITY DEVELOPMENT 90,000.00 278,753.23 396,246.77 675,000.00645 CAPITAL OUTLAY 1,000,000.00 1,814,817.92 1,749,816.11 65,001.81

4. CAPITAL & CDBG GRANTS Expense Totals 1,090,000.00 2,489,817.92 2,028,569.34 461,248.584. CAPITAL & CDBG GRANTS Net Position Change -14,400.00 -279,017.92 -1,712,084.02 -1,433,066.10 Tuesday, April 22, 2025 Page 5 of 9
Yreka City Council Agenda May 6, 2025

ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 4. CAPITAL & CDBG GRANTS (164 detail records)5. WATER FUNDSRevenue 830 REVENUE - USE OF MONEY & PROPERTY 80,000.00 115,000.00 181,136.77 66,136.77850 REVENUE - INTERGOVERNMENTAL 3,634,000.00 5,150,000.00 2,453,907.00 -2,696,093.00870 REVENUE - USER FEES AND CHARGES 4,372,323.72 2,605,803.02 -1,088,496.98 3,694,300.00882 REVENUE - OTHER 0.00 88.24 88.24 0.00898 INTERFUND TRANSFERS 7,500.00 0.00 -440,015.81 440,015.81

5. WATER FUNDS Revenue Totals 8,093,823.72 9,399,315.81 5,240,935.03 -4,158,380.78Expense 100 COLLECTION EXPENSE 377,096.95 351,230.13 199,923.14 151,306.99300 ENGINEERING 420,500.36 115,482.84 207,698.04 323,180.88500 WATER DISTRIBUTION EXPENSE 1,252,622.89 1,377,662.37 456,893.06 920,769.31510 WATER TREATMENT AND CONSERVATION 1,431,639.65 996,688.68 500,842.76 1,497,531.44510 COST OF POWER AND WATER 306,600.00 301,457.36 29,542.64 331,000.00645 CAPITAL OUTLAY 3,425,000.00 5,925,053.99 454,942.71 5,470,111.28690 CAPITALIZATION OF ASSETS -775,000.00 -775,000.00 0.00 -775,000.00740 PRINCIPAL ON LT DEBT 230,024.89 0.00 230,024.89 230,024.89745 INTEREST ON LT DEBT 118,823.28 62,349.19 56,474.09 118,823.28799 ICA EXPENSE 321,988.88 234,000.00 13,975.00 247,975.00

5. WATER FUNDS Expense Totals 7,109,296.90 9,627,481.98 2,821,736.98 6,805,745.005. WATER FUNDS Net Position Change 984,526.82 -228,166.17 2,419,198.05 2,647,364.22 Tuesday, April 22, 2025 Page 6 of 9
Yreka City Council Agenda May 6, 2025

ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 5. WATER FUNDS (390 detail records)6. SEWER FUNDSRevenue 830 REVENUE - USE OF MONEY & PROPERTY 95,000.00 75,500.00 90,219.77 14,719.77850 REVENUE - INTERGOVERNMENTAL 271,000.00 5,655,349.00 1,405,349.00 4,250,000.00870 REVENUE - USER FEES AND CHARGES 3,909,443.18 2,409,871.82 -907,637.18 3,317,509.00882 REVENUE - OTHER 0.00 0.00 0.00 0.00883 GAIN (LOSS) ON SALE OF ASSETS 0.00 753.30 753.30 0.00898 INTERFUND TRANSFERS 2,000.00 -110,010.00 0.00 110,010.00

6. SEWER FUNDS Revenue Totals 4,277,443.18 7,532,999.00 8,156,193.89 623,194.89Expense 100 COLLECTION EXPENSE 386,810.95 357,055.64 199,667.62 157,388.02300 ENGINEERING 324,568.36 113,743.44 200,571.28 314,314.72510 COST OF POWER AND WATER 330,135.00 216,912.01 50,287.99 267,200.00550 WASTEWATER COLLECTION EXPENSE 850,236.50 298,173.84 449,177.83 747,351.67560 WASTEWATER TREATMENT EXPENSE 1,126,513.23 1,208,885.79 767,544.48 441,341.31645 CAPITAL OUTLAY 1,037,982.00 5,287,982.00 2,885,204.08 2,402,777.92690 CAPITALIZATION OF ASSETS 0.00 0.00 0.00 0.00740 PRINCIPAL ON LT DEBT 191,000.00 99,000.00 94,000.00 193,000.00745 INTEREST ON LT DEBT 209,455.00 211,063.75 -1,524.75 209,539.00799 ICA EXPENSE 276,321.12 198,000.00 31,717.00 229,717.00

6. SEWER FUNDS Expense Totals 4,733,022.16 8,815,045.82 4,989,309.22 3,825,736.606. SEWER FUNDS Net Position Change -455,578.98 -1,282,046.82 3,166,884.67 4,448,931.49 Tuesday, April 22, 2025 Page 7 of 9
Yreka City Council Agenda May 6, 2025

ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 6. SEWER FUNDS (261 detail records)7. LANDFILL FUNDSRevenue 850 REVENUE - INTERGOVERNMENTAL 0.00 0.00 21,857.97 21,857.97

7. LANDFILL FUNDS Revenue Totals 0.00 0.00 21,857.97 21,857.97Expense 380 PUBLIC WORKS - WASTE DISPOSAL 0.00 13,738.22 23,925.99 -10,187.77645 CAPITAL OUTLAY 0.00 0.00 0.00 0.00

7. LANDFILL FUNDS Expense Totals 0.00 13,738.22 23,925.99 -10,187.777. LANDFILL FUNDS Net Position Change 0.00 -13,738.22 -2,068.02 11,670.20 Tuesday, April 22, 2025 Page 8 of 9
Yreka City Council Agenda May 6, 2025

ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 7. LANDFILL FUNDS (21 detail records) Grand Total -824,713.95 1,233,290.36 -3,571,567.37 -4,804,857.73 Tuesday, April 22, 2025 Page 9 of 9
Yreka City Council Agenda May 6, 2025

Settlement Account Par Book Market Interest Maturity Market Date Investment Number Amount Value Value Rate % Date Value % Certificates of Deposit
Various Multi-Bank Securities, Inc - PERSHING BANK *** RMB-034398 3,185,000.00 3,185,000.00 3,181,927.70 1.709% 0-5 years 99.90% Cash and Equivalents
3/31/2025 Local Agency Investment Fund - LAIF *** 98-47-996 25,217,627.46 25,217,627.46 25,124,726.78 4.313% NONE 99.63% 3/31/2025 Multi-Bank Securities, Inc - PERSHING BANK *** - Cash RMB-034398 278,212.66 278,212.66 278,212.66 0.000% NONE N/A 3/31/2025 Mechanics Bank- Checking xxxxxxx5102 1,159,484.97 1,159,484.97 1,159,484.97 0.010% NONE 100.00% 3/31/2025 Mechanics Bank-ZBA Credit Card Payments xxxxxxx6830 - - - 0.000% NONE N/A 3/31/2025 Mechanics Bank-SUMIT Non Adjudicated xxxxxxx4281 3,707.71 3,707.71 3,707.71 0.010% 100.00% 3/31/2025 Mechanics Bank-SUMIT Operating xxxxxxx2233 412,460.84 412,460.84 412,460.84 0.000% NONE 100.00% 3/31/2025 Mechanics Bank - Money Market xxxxxxx6505 505,556.77 505,556.77 505,556.77 3.040% NONE 100.00% 3/31/2025 Petty Cash - City Departments 1,200.00 1,200.00 1,200.00 NONE 100.00% TOTAL CASH AND INVESTMENTS $ 30,763,250.41 $ 30,763,250.41 $ 30,667,277.43 *** See supplemental data on Multi Bank Securities and LAIF Investment maturities, investment portfolio mix and yield Emily Aldrich, Finance Director
Approved by motion of the Yreka City Council at its meeting held May 6th, 2025 City Mayor Emily Aldrich, Appointed City Treasurer

QUARTERLY INVESTMENT REPORT
March 31, 2025
The instruments of investments used this quarter are in direct relationship with the City's investment policy. It is the opinion of the Finance Diretor and City Treasurer that the next six (6) months expenditures will be met.

Yreka City Council Agenda
May 6, 2025

Corey Middleton, Mayor
Paul McCoy, Mayor Pro Tempore
Colleen Baker, Councilmember
Drake Davis, Councilmember
James Clair, Councilmember
Jason Ledbetter, City Manager
Juliana Lucchesi, Asst. City Manager
Emily Aldrich, Finance Director
Matthew Bray, Public Works Director
John Elsnab, Human Resources Director
Cyndy Prohaska, City Clerk
Mark Gilman, Police Chief
Jerry Lemos, Fire Chief
Andrew Jared, City Attorney

YREKA CITY COUNCIL MEETING MINUTES
April 15, 2025
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.yrekaca.gov/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, and 24 hours before each special 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.yrekaca.gov/AgendaCenter.

Please note the following change to the City’s public comment procedures: Unless a Councilmember is participating in the meeting remotely pursuant to Government Code section 54953(f), 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 CLOSED SESSION:

The meeting was called to order at 5:30 pm.

2. PUBLIC COMMENT ON CLOSED SESSION ITEMS:

No public comment was received on closed session items.

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. Public Employee Appointment (Government Code Section §54957) 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
May 6, 2025

Position: City Manager, Interim City Manager

4. 6:30PM CALL TO ORDER REGULAR SESSION AND PLEDGE OF ALLEGIANCE:

Closed session adjourned at 6:31 pm.

There was no reportable action during closed session.

Regular session was called to order at 6:41 pm.

5. ROLL CALL:

Councilmembers Clair, Davis, Baker & Middleton are present. Councilmember McCoy is absent.

6. APPROVAL OF THE AGENDA:

Motion to Approve the Agenda as Presented.

MOTIONED: Councilmember Baker
SECOND: Councilmember Davis
AYES: Councilmembers Clair, Davis, Baker & Middleton
NO’S: -0-
ABSENT: Councilmember McCoy
The motion passes.

7. PRESENTATIONS: (NONE)

8. PUBLIC COMMENTS:

Public comment received by: Dawnmarie Autry and Jan Osborn

9. 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 of Minutes of the Regular Meeting held April 1, 2025. b. Motion to Direct the City Manager to Approve the Fee Waivers for the City Stage and Encroachment Permit, Downtown Street Closures, and Hanging of an Event Banner along Downtown Miner Street for Siskiyou Beef ‘N’Brew Event.

Recommended City Council Action: Motion to Adopt the Consent Agenda of the City Council of the City of Yreka as presented.

Motion to Adopt the Consent Agenda of the City Council of the City of Yreka as Presented.

MOTIONED: Councilmember Clair
SECOND: Councilmember Baker
AYES: Councilmembers Clair, Davis, Baker & Middleton
NO:’s -0-
ABSENT: Councilmember McCoy
Yreka City Council Agenda
May 6, 2025

The motion passes.

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. CITY BUSINESS:

City Manager/ City Attorney
a. Agenda Title: Second Reading and Adoption of Ordinance No. 881 Designating Fire Hazard Severity Zones and Amend Sections of the Yreka Municipal Code Regarding Fire Hazard Severity Zones.

Recommended City Council Action: (1) Consider Fire Hazard Severity Zone Map as recommended by the State Fire Marshal, amended to include Parcel Data (Attachment 1.B) (2) Waive the full reading of an Ordinance Designating Fire Hazard Severity Zones as recommended by the Fire State Marshal and amend Chapter 11.10 of the Yreka Municipal Code (Attachment 1.A) and (3) Read the following Ordinance by title only: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF YREKA, CALIFORNIA ADOPTING THE FIRE HAZARD SEVERITY ZONE MAP AND AMENDING TITLE 11, CHAPTER

11.10 AS “FIRE HAZARD SEVERITY ZONES”
No public comment was received.

Motion to (1) Consider Fire Hazard Severity Zone Map as recommended by the State Fire Marshal, amended to include Parcel Data (Attachment 1.B) (2) Waive the full reading of an Ordinance Designating Fire Hazard Severity Zones as recommended by the Fire State Marshal and amend Chapter 11.10 of the Yreka Municipal Code (Attachment 1.A) and (3) Read the following Ordinance by title only: AN

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF YREKA, CALIFORNIA ADOPTING THE FIRE HAZARD SEVERITY ZONE MAP AND AMENDING TITLE 11, CHAPTER 11.10 AS “FIRE HAZARD SEVERITY ZONES”
MOTIONED: Councilmember Baker
SECOND: Councilmember Middleton
AYES: Councilmembers Clair, Davis, Baker & Middleton
NO’s: -0-
ABSENT: Councilmember McCoy
The motion passes.

Human Resources Director
b. Agenda Title: Adoption of Resolution 2025-13 of the City Council of the City of Yreka Approving the Compensation Resolution for Unrepresented Dispatcher Employees.

Recommended City Council Action: Motion to Adopt Resolution 2025-13 of the City Council of the City of Yreka Approving the Compensation Resolution for Unrepresented Dispatcher Employees.

Yreka City Council Agenda
May 6, 2025

No public comment received.

Motion to Adopt Resolution 2025-13 of the City Council of the City of Yreka Approving the Compensation Resolution for Unrepresented Dispatcher Employees.

MOTIONED: Councilmember Davis
SECOND: Councilmember Baker
AYES: Councilmembers Clair, Davis, Baker & Middleton
NO’s: -0-
ABSENT: Councilmember McCoy
The motion passes.

Human Resources Director
c.Agenda Title: Discussion/Possible Action on Adopting a Resolution of the City Council of the City of Yreka Approving the Compensation Resolutions for Unrepresented Fire Employees and Authorizing the City Manager to Recruit Six Fire Positions.

Recommended City Council Action: Motion to Adopt Resolution 2025-14 of the City Council of the City of Yreka Approving the Compensation Resolution for Unrepresented Employees and Authorizing the City Manager to Recruit Six Fire Positions.

No public comment was received.

Motion to Adopt Resolution 2025-14 of the City Council of the City of Yreka Approving the Compensation Resolution for Unrepresented Employees and Authorizing the City Manager to Recruit Six Fire Positions, to Adopt the Job Descriptions as Presented and to Correct Item 6.4 Sick Leave on Page 53 of the Document to Read Employees Accrue 9.81 Hours of Paid Sick Leave Per Pay Period.

MOTIONED: Councilmember Baker
SECOND: Councilmember Davis
AYES: Councilmembers Clair, Davis, Baker & Middleton
NO’s: -0-
ABSENT: Councilmember McCoy
The motion passes.

12. CITY MANAGER/STAFF REPORTS:

City Manager Jason Ledbetter gave an update.

Police Chief Mark Gilman gave an update.

13. MAYOR/COUNCILMEMBERS REPORTS, STATEMENTS AND REQUESTS:

Councilmember Clair gave an update.

Councilmember Davis gave an update.

Councilmember Baker gave an update on the Citizen of the Year Banquet and requested a tour of the pallet shelter.

Yreka City Council Agenda
May 6, 2025

Councilmember Middleton gave an update.

14. ADJOURNMENT:

Meeting adjourned at 7:29 pm
____________________________
Mayor of the City of Yreka
Minutes approved by City Council
Motion on April 15, 2025
___________________________
Cyndy Prohaska, City Clerk
Yreka City Council Agenda
May 6, 2025

Corey Middleton, Mayor
Paul McCoy, Mayor Pro tempore
Colleen Baker, Councilmember
Drake Davis, Councilmember
James Clair, Councilmember
Jason Ledbetter, City Manager
Juliana Lucchesi, Asst. City Manager
Emily Aldrich, Finance Director
Matthew Bray, Public Works Director
John Elsnab, Human Resources Director
Cyndy Prohaska, City Clerk
Mark Gilman, Police Chief
Jerry Lemos, Fire Chief
Andrew Jared, City Attorney

YREKA CITY COUNCIL SPECIAL MEETING MINUTES
Thursday, April 24, 2025, at 5:30 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.yrekaca.gov/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, and 24 hours before each special 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.yrekaca.gov/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 5:32 pm.

Councilmembers Clair, Davis, Baker, McCoy & Middleton are present.

2. PUBLIC COMMENT ON CLOSED SESSION ITEM:

Public comment received by Jan Osborn

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—existing litigation (Govt C §54956.9(d)(1)) - Welch v. City of Yreka – Siskiyou County Case Number SCSCCVPT2021-944 b. Public Employee Appointment (Govt Code Section §54957) Yreka City Council Agenda
May 6, 2025

Position: Interim City Manager

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.)
Open session reconvened at 7:32 pm
Closed session item 3.a: No reportable action.

Closed session item 3.b: The city council has directed unanimously that a contract be brought back for adoption at the May 6th City Council meeting, to appoint John Elsnab as Interim City Manager. That item will be brought back for a vote, presentation, and consideration at that meeting.

5. ADJOURNMENT:

Meeting adjourned at 7:34 pm
____________________________
Mayor of the City of Yreka
Minutes approved by City Council
Motion on May 6, 2025
___________________________
Cyndy Prohaska, City Clerk
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council
From: Cynthia Lynch, Municipal Projects Manager
Agenda title: Discussion/Possible Action: Approve the Transportation Claim for the Local Transportation Fund for Fiscal Year 2025/2026 and Authorize the Mayor to Sign the Claim on Behalf of the City Meeting date: May 6, 2025
Recommendation and Requested Action:

That the Council approve the Transportation Claim for the Local Transportation Fund for Fiscal Year 2025/2026 and authorize the Mayor to sign the claim on behalf of the City.

Discussion:

The Transportation Development Act (TDA), passed in the late 1970’s to subsidize public transit, allows distribution from the Local Transportation Fund (LTF) to cities and counties in California. For every $7.25 the State collects in sales tax from the County, the County receives $.25. While these funds are mainly intended for local public transit, counties with a population under 200,000 are allocated a portion of the funds for local streets and roads after county transit needs are met and a Public Hearing on Unmet Needs is held.

The Siskiyou County Local Transportation Commission (LTC) determines the dollar amounts to be allocated (based on population) to Siskiyou County and its cities, and issues the Transportation Claim letters to the jurisdictions. The City Council is required to approve its annual LTF Transportation Claim at a regular City Council meeting before the LTC considers it for approval. The LTC has sent the City its Transportation Claim for FY 2025/2026, with the request that it be returned to the LTC as soon as possible.

Fiscal Impact:

The LTC staff has estimated that the allocation of streets revenue for the City of Yreka will be about $106,778 in FY 2025/2026, with another $233,946 to be allocated to County public transit needs. The amount the City will actually receive is based on receipts from the State of California and may vary from the claim amount.

Yreka City Council Agenda
May 6, 2025

Siskiyou County Local Transportation Commission
Local Transportation Fund Transportation Claim
To:

From:

A. Funding Available (Not Claimed)

1. Funds from prior years

2. Current Estimated Allocations
B. Total Amount Claimed

1. By Funding Source
c. Total Claimed

2. By Purpose
(Chapter 4, Part 11, Division 10 of P.U.C.)
2025/2026 340,724.00 $
Fiscal Year 2025/2026
Siskiyou County Local Transportation Commission
City of Yreka
(Claimant)
This applicant, qualified pursuant to section 99203 of the Public Utilities Code, hereby requests, in accordance with the applicable rules and regulations of the Transportation Development Act as enacted and amended by statute to January 1, 2011, that its claim be approved in the amount of:
$ 340,724.00
a. Estimated funds with County Auditor 7/1/2025 $ -
$ 340,724.00
a. Estimated funds with County Auditor $ -
b. Current Estimated Allocations 2025/2026 340,724.00 $ $ 340,724.00
a. Public Transit [Art 4, Sec 99260 (a)] $ 233,946.00
b. Streets/Roads [Art 8, Sec 99400 (a)] $ 106,778.00
c. Other $ -
d. Total Claimed $ 340,724.00
Yreka City Council Agenda
1 of 2
May 6, 2025

Siskiyou County Local Transportation Commission
Local Transportation Fund Transportation Claim
By:

Date:

By:

Date:

Approved:

City of Yreka
Corey Middleton, Mayor
Siskiyou County Local Transportation Commission
Transportation Commission Executive Director
The claimant herewith recognizes that any allocations for streets and roads will be made in accordance with, but not limited to, Section 99401.5, Article 8, Chapter 4, Part 11, Division 10 of the Public Utilities Code. This section stipulates that the Local Transportation Commission must annually review unmet transit needs and determine if they are reasonable to meet prior to making any allocation of funding for streets and roads.

After obtaining approval by the governing body please transmit this claim for payment from the Local Transporation Fund to the following address:

Siskiyou County Local Transportation Commission
190 Greenhorn Road
Yreka, CA 96097
Approval of the claim and payment by the County Auditor is subject to such monies being on hand and available for distribution and to the provisions that such monies will be used in accordance with the rules and regulations of the Transportation Development Act.

Yreka City Council Agenda
2 of 2
May 6, 2025

Prepared by: Juliana Lucchesi AICP, Assistant City Manager Agenda Title: 2025-19 Carnegie Library Alleyway Easement Vacation Meeting date: May 6, 2025
Recommended Action:

Motion to approve City Council Resolution 2025-15 “A Resolution Of The City Council Of The City Of Yreka, California, Vacating A City Easement Located At 412 West Miner Street, Yreka, Ca 96097, Assessor’s Parcel Number 053-352-160-000”, by Title Only
Summary:

The City of Yreka received a request to vacate an alleyway or street easement at 412 West Miner Street, Assessor’s Parcel Number 053-352-160-000, property referred to as “Carnegie Library” from Tonya Dowse, Executive Director of Siskiyou Economic Development Council.

Background:

The City of Yreka currently holds an easement in gross over a portion of real property located at 412 West Miner Street, Yreka, CA 96097. The easement is 18 feet wide and 52 feet long, located at the rear of the main building on the property. According to the topographic map and property records, this easement was created by deed recorded on December 9, 1913, for use "solely as a street or alley."
General Plan & City Code Consistency:

Staff have reviewed the City's General Plan and confirmed that there are no current or planned future uses for this alleyway easement identified in the General Plan or any other City planning document.

Environmental Review:

The action of vacating the easement is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption). The proposed vacation of easement would not create a new parcel nor result in an action that would have reasonably foreseeable impacts on the environment; therefore, the action would qualify as a “project” under CEQA.

Yreka City Council Agenda
May 6, 2025

Fiscal Impact:

There is no significant fiscal impact associated with this action. The applicant has paid the required fees to process this vacation request. Once vacated, the City will no longer have maintenance responsibility for the easement area.

Findings:

California Streets and Highways Code Section 8330 et seq. provides the procedure for summary vacation of public service easements. Specifically, Section 8333 allows a legislative body to vacate a public service easement by resolution if:

1. The easement has not been used for the purpose for which it was dedicated or acquired for five consecutive years immediately preceding the proposed vacation; or

2. The easement has been superseded by relocation; or

3. The easement has been determined to be excess by the easement holder.

In this case, the easement meets criteria #1, as the Public Works and Planning Departments have determined that the easement has not been used for the intended purpose of an alleyway in the past five consecutive years.

All City departments and utility companies have been consulted to verify that there are no existing utilities within the easement area, and no planned future utility installations that would require the easement to remain in place.

Staff Recommendation:

Based on the information provided, Staff recommend that the City Council adopt the attached resolution vacating the City easement at 412 West Miner Street, Yreka, CA 96097
Attachments:

1. City Council Resolution 2025-15 “A Resolution Of The City Council Of The City Of Yreka, California, Vacating A City Easement Located At 412 West Miner Street, Yreka, Ca 96097, Assessor’s Parcel Number 053-352-160-000”

2. Exhibit A - Legal Description of Easement

3. Exhibit B - Plat Map of Easement

4. Deed recorded December 9, 1913, creating the easement Yreka City Council Agenda
May 6, 2025

RESOLUTION NO. 2025-15

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF YREKA, CALIFORNIA, VACATING A CITY
EASEMENT LOCATED AT 412 WEST MINER STREET,
YREKA, CA 96097, ASSESSOR’S PARCEL NUMBER
053-352-160-000
WHEREAS, the City of Yreka holds an easement in gross over a portion of real property located at412 West Miner Street, Yreka, CA 96097 Assessor’s Parcel Number 053-352-160-000 in the City of Yreka, County of Siskiyou, State of California; and WHEREAS, said easement is 18 feet wide and 52 feet long, located at the rear of the main building on said property, and was created by deed recorded on December 9, 1913, for use a street or alley; and
WHEREAS, pursuant to California Streets and Highways Code Section 8324, the City Council may summarily vacate an easement if it has been determined that the easement has been superseded by relocation or determined to be excess by the easement holder, and there are no other public facilities located within the easement; and
WHEREAS, there are no utilities or other public facilities located within the easement; and WHEREAS, the City's General Plan does not identify any current or future uses for the alleyway easement; and
WHEREAS, the City Council of the City of Yreka finds that the public interest, convenience, and necessity no longer require the continuation of the easement; and WHEREAS, pursuant to California Streets and Highways Code Section 8313, the City Council of the City of Yreka finds that the subject easement is unnecessary for present or prospective public use; and
WHEREAS, the vacation of the easement is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption);
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Yreka, California, as follows:

Section 1. The City Council hereby finds that the above recitals are true and correct and incorporated herein by reference.

Section 2. Pursuant to the provisions of Chapter 4 of Part 3 of Division 9 of the California Streets and Highways Code (Section 8330 et seq.), the City Council hereby vacates the easement in gross held by the City of Yreka over a certain portion of real property as described in Exhibit "A" attached hereto and incorporated herein by this reference, and as depicted in Exhibit "B" attached hereto and incorporated herein by this reference.

Yreka City Council Agenda
May 6, 2025

Section 3. The City Clerk is directed to cause a certified copy of this Resolution to be recorded in the Office of the Siskiyou County Recorder.

Section 4. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED AND ADOPTED this 6th day of May, 2025. ______________________
[Mayor's Name], Mayor
ATTEST:
______________________
Cyndy Prohaska, City Clerk
APPROVED AS TO FORM:
_______________________
Andrew Jared, City Attorney
Yreka City Council Agenda
May 6, 2025

ALL THAT REAL PROPERTY SITUATED IN BLOCK 24 OF THE CITY OF YREKA, COUNTY OF SISKIYOU, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

THE NORTHERLY 18.00 FEET OF THOSE PORTIONS OF LOTS 9 & 10 OF SAID BLOCK 24 GRANTED TO THE TOWN OF YREKA CITY THE 12TH DAY OF JUNE 1913, AND RECORDED THE 9TH DAY OF DECEMBER 1913 IN VOLUME 89 OF DEEDS, PAGES 441 THROUGH 443 INCLUSIVE, SISKIYOU COUNTY RECORDS. __________________________________ ___________
WADE DEDOBBELEER L.S. 9458 DATE

SISKIYOU LAND SURVEYING
EXHIBIT "A"
Legal Description of Easement to be Vacated
Yreka City Council Agenda
May 6, 2025

18.0' ALLEY
PER 89 DEEDS 441 - 443 TO BE EXTINGUISHED

WEST MINER
STREET
NOTES:

1. BOUNDARY SHOWN

BASED ON RECORD OF
SURVEY 21 RSB 140

2. THE PURPOSE OF THIS

EXHIBIT IS TO ASSIST

IN THE PROCESS OF

EXTINGUISHING,

VACATING, OR

OTHERWISE REMOVING

THE CONTINGENCY

THAT THE NORTHERLY
18 FEET OF THE
PORTION OF LOTS 9 &
10 OF BLOCK 24
CONVEYED BY 89
DEEDS 441-443 ARE TO

BE USED AS A STREET
OR ALLEY.

EXHIBIT "___"
FOR

SISKIYOU ECONOMIC DEVELOPMENT
WADE DEDOBBELEER L.S.9458

SISKIYOU
LAND SURVEYING SCALE: 1"=20'
[email protected]
FILE: 02323
DATE: 4-3-25
SHEET 1 OF 1
A PORTION OF LOTS 9, & 10 OF BLOCK
24, CITY OF YREKA
WITHIN SECTION 22,T 45 N, R 7 W, M.D.M.,

SISKIYOU COUNTY, CALIFORNIA
EXHIBIT "B"
Plat Map Depicting Easement to be Vacated
Yreka City Council Agenda
May 6, 2025

bxembar 91 1913
eq bet 1-1-41
441
-
.
0 IN WITNESS WHEREOF. I have hereunto set my hand and affixed my Official Seal. the day and year in this certificate first above written.

M. P. W. Albee
(SEAL) Rotary Public in and for said County of Alameda, Sy Commiesion expires June 26th, 1915. State of California.

STATE OP OREGON. )
ss
County of Jackson
On this let day of eoember. A. D. 1913 before me. a Rotary Public for the State of Oregon, County of Jackson. personally appeared Henry D. Mullin, to me personally known to be the person described in and shoe name is subsoribed to the within instrument, and he acknowledged to me that he executed the same for the uses and purposes herein mentioned. •
It WITNESS WHEREOF. I have hereunto set um, hand and affixed my Official Seal, the day and year first above written.
(SEAL) ' A. H. Fisher
My Commission Aspires Dec. 20" A.D. 1918. Notary Public for Oregon.

Recorded at Request.of Taylor & Tebbe. December 8th, A.D. 1913 at 60 min. past 1 P.M.

County Recorder
000000000000
THIS INDENTURE. Made the 12th day of Julie one thousand nine hundred and Thirteen .

BETWEEN J. M. O'Neill, of Yreka. Sioklyou County. California. the party of the first . part. and The Town of Yreka City. a Municipal Corporation, the party of the second part, WITNESS3111: That the said patty of the first part, in consideration of the aws of
One Dollar. Lawful money of the United States of America, to him in hand paid, by the said party of the aecond fart, the receipt whereof in hereby acknowledged, does by these prevents, grant, bargain and sell, unto the said party of the second part, and to its secessors and assigns. forever; all that certain lot, piece or parcel of land situate in the Town of Yreka CIS; County of Siekiyon. State of California, and bounded and described as follows. to-wit:

All that portion of Lot Number Ten (10). of Block Number Twenty-four (24). of aald Town of Yreka City, described as follows:

Beginning at the South Teat corner thereof, extending thence. forth on a line between said Lot end Lot 9. of said Block 24. a dietanoe of 100 feet;
thence East and varallel with the North aide of Miner Street. a distance of Eleven feet; thence Swath and parallel with the rest side of said Lot 10, a distance of 100 feet. to the Borth side of said Miner Street; thence West along the North side of said Miner Street a distance of Eleven feet to the place of beginning. The grantor herein also agrees to dedicate a strip of land as an alley. eighteen (18) feet wide, adjoining the land hereby conveyed on the north.

TOGETEER with the tenements. bereditaments. and appurtenances thereunto belonging. or appertaining, and the reversion and reversions, remainder and remainders, rents, issuse and profits thereof.

TO RATE AND TO HOLD, the said premises. together with the appurtenances, unto the :said party of the :second part, and to its succeaSore and assigne forever.

Attachment 4: Deed recorded December 9,
1913, creating the easement
Yreka City Council Agenda
May 6, 2025

, 1442
acenbtr 9 , 11)13
Dccao 44a
IN WITNESS THERFDF, the said party of the first part has hereunto set his hand the day and year first above written.

Signed and Delivered in the Presence of )
1 J. M. O'Neill
James D. Fairchild.

STATE OP CAIIITNRRIA, )
) as.

County of. Siskiyou. )
On thie inn day of June in the year of our Lord one thousand nine hundred and Thirteen, before me. JANES D. FAIRCHILD. a Votary Public in and for said County and State, reaiding therein, duly commissioned and sworn, personally appeared J. M. O'Neill, known to me to be the person described In and whose name is subscribed to 'the within instrument, and acknowledged to me that he 'flouted the same.

IN . WITNESS WHEREOF. I have hereunto set my hand and affixed my Official Seal, the . day and year in this aertifioate first above written.
11 James. D. Fairchild
(8216) Notary Dublic in and for Siskiyou County.

California.

Recorded at the Request of J. D. Fairchild. Dec. 9th, 1912, at 30 min. peat 11 o'clock. A.M. -614-11
County Record .
p000mocooTHIS INDENTURE. Made the 12th day of June one thousand nine hundred and Thirteen BETWE-171 Herman Brinier and Emma F. Brinier, his wIfe,the parties of the ;fret part and The Town of Yreka City, a Municipal Corporation, the party of the second part.

WITNESSETH: That the said parties of the first part in consideration of the rum of One Thousand Dollars. Lawful of the United States of America. to them in hand paid, by the said party of the second pert, the reoeipt whereof is hereby acknowledged. do by these pre- ' sante grant, bargain and sell unto the said party of the eecond part, and to its successors and assigns, forever; all that certain lot, pieoe or parcel of land situate in the Town of Yreka City. County of Siekiyou. State of California. and bounded and deeoribed as follows, to-wit: ' All that portion of Lot Number Nine (9) of Block Number Twenty-four (24). of said Town of Yreka City. desoribed as follows, to wit: Beginning at the Saath East corner of '. said Lot. extending thence along the North side of Miner Street a diatanoe of Fifty-two (62) feet; thence North and parallel with the Nast line of said Lot, a distance of One Hundred ' (100) feet; thence East a distance of Fifty-two (52) feet to the East line of said Lot 9; thence South between said Lot 9. and Lot 10, a distance of One Hundred (100) feet to the place of beginning. .

Said parties of the first part do further grant. convey and dedicate unto said party of the second part, a strip of lend adjoining the above deso-ibed load on the North. described as follows: Beginning at the North East corner of the land described above, hereby conveyed, extending thence along the East side of said Lot 9, a distance of Eighteen (18) feet. to the North East corner of said Lot 9; extending thence West along the North side of said Lot

9. a distance of Fifty-two (62) feet;thenee South to the North West corner of said above de- ..
scribed hereby conveyed; thence East along said land. Fifty-two (62) feet to place of beginning. being el flip of land 18 feet wide adjoining the lend hereby conveyed on the North. to be Yreka City Council Agenda
May 6, 2025

#
r 44:3
used solely as el Street or alley.

TOGETHER with the tenements. hereditament°. and appurtenances, thereunto belonging or appertaining. and the reversion and reversions, remainder and remainders, rents. issues and profits thereof. '
TO HAVE ADD TO HOLD. the said premises, together with the appurtenauDee, unto the said party of the second part. and to its cuccessore end assigns forever.

IN WITNESS THEREOF. the said partite of the first part have hereunto set ---- handthe day and yeai first above written.

Signed and Delivered in the Presence of )
Herman Brinier
Lima F. Brinier
STATE OF CALIFORNIA. 1
I es.

County of Siskiyou. I
On this 12th day of june in the year of our Lord one thousand nine hundred and Thirteen before me, JAMES D. FAIRCHILD. a Notary Public in and for said County and State,' residing therein, duly commissioned and sworn, pereonally appeared Herman Brinier. and EmMa F. Brinier, his wife, known to me to be the persons deecrioed in and whose namesare subscribed to the within instrument, and acknowledged to me-that they executed the ammo.

IN WITNESS 7HEREOF. I have hereunto set my hand and affixed my Official Seal, the day and year in this certificate first above written.

James D. Fairchild-
(SEAL) Notary Public in and for Siekiyou County,
California.

Recorded at the Request of J. D. Fairchild. Dec. 9th. 1913, at 31 min. peat 11 o'clock. A.M. •
annc•—crtn*Zi
County Reeoroar.
0000000000
THIS INDEBTDRE. Made this 9th day of Deoember in the year of our Lord one thousand Rr
0 nine hundred and thirteen.

Brirmit Charles B. Howard. Sheriff of the County of Siakiyou. State of. California. the party of the first part. and A. S. Calkins, of the said County of Siskiyou. State of California. the party of the second part. WITNESBETH:

WHEREAS. in and by a certain Judgment or Deoree, made and entered by 'the Superior.

Court of the County of Siekiyou. State of California, on the 6th day of November. 1912, in a certain action then 'pending in said_Court. wherein said A. B. Calkins was plaintiff and Melvin Frank Bigelow and, Lillibn E. Bigelow were defendants, and of which said judgment or. decree 'a certified copy with an order of sale from said Court was delivered to said party of the' first part, as snob Sheriff for execution, it was among other things ordered, adjudged and .• decreed, that all and singular, the mortgaged premises described in the complaint in said (lotion. and specifically described in said judgment or decree, should be sold at public auction by the Sheriff of the said County of Siekiyou, in the manner required by law, and according to the course and praotioe of said Court: that such sale be made in front of the Court Rouse door (west) in the Town of Yreka City, County of Siskiyon. State of California. between the Yreka City Council Agenda
May 6, 2025

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STATE OF CALIFORNIA )
) se.

County of Siskiyou )
On July 16th, 1946, before me, Margaret Wintering, a Notary Publio in and for said Siskiyou County and State, personally appeared Ensa F. Brinier, Single known to me to be the person whose name is subeoribed to the within instrument, and aoknowledg to me that she executed the same.
(SEAL.) Margaret Wintering
Notary Publio in and for the County of Siskiyou,
State of California.

My commission expires June 18th, 1960
Recorded at the Request of SISKIYOU COUNTY ABSTRACT CO. JUL 17 1946 at 30 min. pact 2 o'clock P.M., in Volume 190 of Official Records of Sinkiyou County, California, page 83.

Fee $1.00
Ernest T. Johnson
Recorder
II a

GRANT DEED
(Joint Tanana)
For value received WA F. BRIMS, Single GRANTS to ROBERT M. STEWART and PHYLLIS M. STEWART, his wife, as JOINT TENANTS all that real property situate in the town of Yreka City County of Siskiyou, State of California, described as foliose:

Being a part of Lots 3 and 9, ?look 24 of the Town of Yreka City according to the Map thereof on file in the office of the county recorder and desoribed as:

Commencing at a point on the North line of Inner Street from which the Southeast corner of said Block 24 bears S. 74° 16' E. 146.6 feet; thence N. 74° Id' W. along the North line of Miner Street 40.2 feet to the Southwest corner of Lot 3 said Sleek 24, an iron pin; thenoe along the West line of Lot 3 N. 16° 46' lt. 117.6 feet to an iron pin from which the Southeast corner of a building bears N. 16° 46' E. 3.73 feet; thence 6.- 740 1.61 5. parallel to the North line of Miner Street 39.63 feet to a Stake; thence 5, 16° 25' W. parallel to the East line of Lot 3, Stook 24 of the town of Yreka City 118.6 feet to the plaoi of beginning.

Reserving unto the grantor, and to N.M. Barham, their heirs and aneigne, a right of way for ingress and egress over the North 17.5 feet and over the Ent 11.2 feet of the property herein conveyed.

WITNESS my hand this 16th day of July, 1946
Dna F. Brinier
voi 190 riti 83 83
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Yreka City Council Agenda
May 6, 2025

Recorded at the request of 26665
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OFFICIAL RECORDS
LRER13000 IT Marna
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cOfilan.ntesies,
..STIITITOU COUNTY. CALM
MAIL taitAth1STflt AthE O.

SPACE ABOVE THIS LINE FOR RECORDER'S USE
For value received GRANT DEED (Individual)
HAROLD E. DEXTER and LOUISE R. DEXTER, his wife
GRANT to
TOWN OF YREKA CITY, a municipal corporation
all that real property situate in the
County of Siskiyou , State of California, described as follows:

PARCEL I:

The fractional West half of Lot 2 of Block 24 of said Town of Yreka City bounded and described as follows:

COMMENCING at the Northwest corner of said Lot 2, Block 24 and running thence Easterly along the South aide of North Street, 40 feet end 6 inches to a point on the North line of said Lot 2; thence Southerly 121 feat to a point on the South aide of said Lot 2; thence Westerly along the South side of said Lot 2, 40 feet and 6 inches to the Southwest corner of said Lot 2; thence Northerly along the Nast line of said Lot 2, 121 feet to the place of commencement.

PARCEL II:

All that portion of Lot 3 in Block 24, according to the '210 of the Town of Yreka City" filed in the office of the County Recorder of Siskiyou County, California, particularly described as follows:

BEGINNING at the Northeast corner of said Lot 3; thence S. 16°30' WEst along the East line of said Lot 3, 121.2 feet to the North line of Lot 9, said Block 24; thence N. 73°30' West 46.0 feet to a point in the boundary line of said Lot 3 from which the most westerly corner of said Lot 3 bears N. 73°20' West, 9.0 feet; thence N. 16°30' East and parallel to the West boundary line of said Lot 3 and 9.0 feet from said West boundary line of said Lot 3, 121.3 feet to a point in the North line of said Lot 3; , thence S. 74°15' East along the lest mentioned line, 46.0 feet to the point of beginning.

TOGETHER with a right of way for ingress and egress over the North 17.5 feet of that portion of Lot 3 and the West 11.2 feet of Lot 9 conveyed by Enna F. Brinser to Robert M. Stewart and Phyllis M. Stewart, his wife, by instrument dated July 16, 1946, recorded July 17, 1946 in Book 190 Official Records, page 83,/and as reserved in said deed by the grantor, Emma Y. Bringer. APPROrtaThicm gitAnny

STATE OF CALIFORNIA
Counlyel Siskiyou
on AOgnat10 1970 1,4,0„„, the underaXgned , e Nolary
I. angry saki Counthored SWk personally *Wand Hawaii E. Dexter and LOUIS'S U, Jhata known to me to be the perronsils whose Rowellare otineribed In the within insIntme I nose W me hal t bet.. retooled the Jame. mu..man,...pftes Feb. 15, 1972
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VOL 598 Paa740.
fAus 24 d 45 AM 11 vol. 598 Page 740
Stessair
RPdfastE . FEE S no Gig
2071
Dated. August 7 1970 Jat E. Kleaver, City...Otto
1 / C
u se N. Dexter
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Yreka City Council Agenda
May 6, 2025

sisxxypu COUNTY

OFFXCIAL RECORDS
RESOLUTION NO. i ci •

A RESOLUTION ACCEPTING A CONVEYANCE FROM
HAROLD E. DEXTER AND LOUISE M. DEXTER
The City Council of the Town of Yreka City, also known
as City of Yreka, has heretofore authorized the acquisition of the lands and premises of Harold E. Decter and Louise M. Doctor, said lands being described as follows:

All that real property situate in the County of Siskiyou, State of California, described as follows:

PARCEL I
The fractional West half of Lot 2 of Block 24 of said
Town of Yreka City bounded and described as follows:

COMMENCING at the Northwest corner of said Lot 2, Block 24 and running thence Easterly along the South aide of
North Street, 40 feet and 6 inches to a point on the
North line of said Lot 2; thence Southerly 121 feet
to a point on the South side of said Lot 2; thence
Westerly along the South side of said Lot 2, 40 feet
and 6 inches to the Southwest corner of said Lot 2;
thence Northerly along the West line of said Lot 2, 121 feet to the place of commencement.

PARCEL II
All that portion of Lot 3 in Block 24, according to
the "Mp of the Town of Yreka City" filed in the office
of the County Recorder of Siskiyou County, California,
particularly described as:

BEGINNING at the Northeast corner of said Lot 3;
thence S 16 30' West along the East line of said Lot 3, 121.2 feet to the North line of Lot 9, said Block 24;
thence N 73 30' West, 46.0 feet to a point in the
boundary line of said Lot 3 frog which the most westerly corner of said Lot 3 bears N 73 20' West, 9.0 feet;
thence N 16 30' East and parallel to the West boundary
line of said Lot 3 and 9.0 feet from said West boundary line of said Lot 3, 121.3 feet to a point in the North
line of said Lot 3; thence S 74 15' East along the
last mentioned line, 46.0 feet to the point of beginning.

TOGETHER with a right of way for ingress and egress
over the North 17.5 feet of that portion of Lot 3
and the West 11.2 feet of Lot 9 conveyed by Emma F.

Brinzer to Robert M. Stewart and Phyllis M. Stewart,
his wife, by instrument dated July 16, 1946, recorded
July 17, 1946, in Liber 190 Official Records, page 83,
and as reserved in said deed by the grantor, Emma F.

Brinzer.

BE IT RESOLVED, That the Town of Yreka City, also
;vat 598 PAGE741 _
Yreka City Council Agenda
May 6, 2025

sump twirl

OFFICIAL RECORDS
known as City of Yreka, do and it does hereby direct acceptance of a form of Grant Deed from Harold E. Dexter and Louise M. Dexter, dated e 7 , 1970, conveying to the City the above des—
cribed lands;
BE IT FURTHER RESOLVED, that the Mayor of the.Towo
of Yreka City, also known as city of Yreka, be and he hereby ie authorized, directed and empowered to endorse upon said I Grant Deed the acceptance thereof by the Town of Yreka City, also known as City of Yreka, in pursuance of this Resolution.

PASSED AND ADOPTED this 20th day of
1970, by the following vote:

AYES: Lamson, LeBaron, Taylor
NOES: Carey
ABSENT: None
ATTEST:

James L. Di] on
City Clerk
V
August
Nal598 742
Yreka City Council Agenda
May 6, 2025

OFFICIAL RECORDS

STATE OF CALIFORNIA
TOWN OF YREKA CITY ) ss

COUNTY OF SISKIYOU )
I, JAMES L. DILLON, City Clerk of the Town
of Yreka City, do hereby certify the above and
foregoing is a full, true and correct copy of a
Resolution duly and regularly adopted at a regular
meeting of the City Council of the Town of Yreka
City, held the 20th claY of August 1970,
at the hour of 7:30 p.m., in the City Hall in the
Town of Yreka City, as the same appears of record
in my office in Book of Minutes Number 12.

IN WITNESS WHEREOF, I have hereunto set
my hand and affixed the seal of said Town of Yreka
City, at my office in the City Hall, this 21st
day of August , 1970.
vol. 598 743
Yreka City Council Agenda
May 6, 2025

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 2023-24
Meeting date: May 6, 2025
Discussion:

The City’s audited financial statements were reviewed at the Finance Committee meeting held April 24, 2025. The final reports were issued on March 3, 2025, 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.

In 2023-2024, 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 15 -16 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 2023-2024 Yreka City Council Agenda
May 6, 2025

CITY OF YREKA,

CALIFORNIA

FINANCIAL STATEMENTS

TOGETHER WITH
INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED
JUNE 30, 2024
Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Annual Financial Report
For the Year Ended June 30, 2024
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 Note to Budgetary Comparison Schedules........................................................................................... 78 Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

INTRODUCTORY SECTION
• List of Officials
Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
List of Officials
For the Year Ended June 30, 2024
-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
Juliana Lucchesi Assistant City Manager
Cindy Prohaska City Clerk
Mark Gilman Chief of Police
Andrew L. Jared City Attorney
Matthew K. Bray Director of Public Works
Emily Aldrich Finance Director, Appointed City Treasurer John Elsnab HR Director
Alia Roca Lezra Planning Director
Jerry Lemos Fire Chief
Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

FINANCIAL SECTION
• Independent Auditor’s Report
• Management’s Discussion and Analysis
• Basic Financial Statements
• Required Supplementary Information
Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

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

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be 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.

Yreka City Council Agenda
May 6, 2025

-2-
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 judgment made by a reasonable user based on the financial statements.

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

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

Yreka City Council Agenda
May 6, 2025

-3-
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 information, City OPEB Plan information, and budgetary comparison information as listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquires, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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 3, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 3, 2025
Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

Management’s Discussion and Analysis
(Unaudited)
Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

-4-
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, 2024. 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. 2023-2024 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 $76,999,580. Of this amount, $18,002,808 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 $1,515,569 from $30,619,436 in 2022-23 to $32,135,005 in 2023-24. The governmental activities unrestricted net position was $3,536,571 in 2022-23 and $3,663,660 in 2023-24.
• The increase in the governmental activities total net position balance of $1,515,569 is primarily due to a $743,392 increase in invested in capital assets net of related debt, a $645,088 increase in restricted net position, and increase to the unrestricted net position of $127,089. • Total assets for governmental activities balance increased $1,426,982 from $43,252,428 in 2022- 23 to $44,679,410 in 2023-24.
o Current assets balance increased $841,832, where $140,814 was an increase in cash and investments balances, and $104,681 was an increase to the receivables and inventory account balances.
o Restricted assets increased by $12,985 from $618,681 in 2022-23 to $631,666 in 2023-24.

Restricted assets include donor restricted cash and debt servicing cash reserve requirements. o Capital assets increased $572,165 from $22,920,267 in 2022-23 to $23,492,432 in 2023-24.

The increase was offset by depreciation expense of $1,204,340. The increase was due to expenditures for new assets of $1,760,148.

Yreka City Council Agenda
May 6, 2025

City of Yreka
Management’s Discussion and Analysis
-5-
o Deferred Outflows for governmental activities balance decreased $1,373,905 from $6,273,587 in 2022-23 to $4,899,682 in 2023-24.
o Pension related outflows decreased by $1,373,736 from $5,968,687 in 2022-23 to $4,594,951 in 2023-24.
o OPEB related outflows decreased by $169 from $304,900 in 2022-23 to $304,731 in 2023-24.
• Total liabilities for governmental activities balance decreased $2,114,476 from $16,905,328 in 2022-23 to $14,790,852 in 2023-24.
o Current liabilities balance decreased $83,764, primarily due to a $67,454 increase in accounts payable, $187,230 decrease in payroll payable, $109,005 decrease in deposits payable. o Net pension liability decreased $1,758,751.
o Net OPEB liabilities increased $34,640 from $154,857 in 2022-23 to $189,497 in 2023-24 o Long-term debt from borrowings decreased $306,601 for scheduled debt repayments. o Compensated absences decreased by a net of $26,300.
• Governmental activities deferred inflows were $2,001,251 in 2022-23 and $2,653,235 in 2023-24 for an increase of $651,984.
o Pension deferred inflows increased $683,199.
o OPEB deferred inflows decreased $31,215.

Business-Type Activities
• The business-type activities total net position balance increased by $10,908,228 from $33,956,347 in 2022-2023 to $44,864,575 in 2023-2024 due to:
o Invested in capital assets net of related debt increased $6,958,206. o The restricted net position represents the City’s debt servicing reserve requirements increased from $550,000 in 2022-2023 to $910,000 in 2023-2024 to satisfy full funding of the City’s debt servicing requirements.
o Unrestricted net position balance increased by $3,590,022 from $10,104,038 in 2022-23 to $13,694,060 in 2023-24. The increase is primarily due to the City receiving reimbursement of previously expended monies for capital projects.

Yreka City Council Agenda
May 6, 2025

City of Yreka
Management’s Discussion and Analysis
-6-
• Total assets for business-type activities balance increased by $11,520,179 from $52,235,810 in 2022-23 to $63,755,989 in 2023-24.
o Current asset balances increased $4,740,366 from $12,777,408 in 2022-23 to $17,517,774 in 2023-24, of which cash and investment balances decreased $4,029,633 and receivable balances increased $8,766,638, of which $8,729,464 was an increase in intergovernmental receivables. o Net OPEB assets remained at $0 in 2022-23 and 2023-24. o Restricted cash balance increased $360,000 from $550,000 in 2022-23 to $910,000 in 2023-24 for debt servicing reserves.
o Capital assets increased $6,419,813 from $38,908,402 in 2022-23 to $45,328,215 in 2023-24. o Deferred outflows decreased $171,390 from $1,983,765 in 2022-23 and $1,812,375 in 2023-

24. • Total liabilities for business-type activities balance increased $670,608 from $19,237,204 in 2022- 23 to $19,907,812 in 2023-24.
o Current liabilities balance increased $843,221.
o Net pension liability increased $272,532.
o Net OPEB liability increased $30,207 from $90,948 in 2022-23 to $121,155 in 2023-24 o Long-term liabilities balance decreased $475,352.
• Deferred inflows decreased $230,047 from $1,026,024 in 2022-23 to $795,977 in 2023-24.

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.

Yreka City Council Agenda
May 6, 2025

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 2023-2024, 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, and (5) 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.

Yreka City Council Agenda
May 6, 2025

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 2023-2024, 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,
(5) change in other post-employment benefits, compensated absences, and pension obligations, and (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 schedule for the governmental funds demonstrates compliance with the budget and is located on pages 75 through 77 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), pages 36 and 37 of this report.

Yreka City Council Agenda
May 6, 2025

City of Yreka
Management’s Discussion and Analysis
-9-
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 $32,135,005 for governmental activities and $44,864,575 for business type activities, a total of $76,999,580, at the close of fiscal year 2023-2024.

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 2022-2023 $ 30,619,436 $ 33,956,347 $ 64,575,783 Fiscal Year 2023-2024 32,135,005 44,864,575 76,999,580
Increase or (Decrease) in Net Position $ 1,515,569 $ 10,908,228 $ 12,423,797 Yreka City Council Agenda
May 6, 2025

City of Yreka
Management’s Discussion and Analysis
-10-
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
2022-2023 2023-2024
2022-2023 as
the base year
Current assets and other assets $ 19,713,480 $ 20,555,312 $ 841,832 4.3% Restricted assets 618,681 631,666 12,985 2.1%
Non-current assets 22,920,267 23,492,432 572,165 2.5%
Total Assets 43,252,428 44,679,410 1,426,982 3.3%
Deferred Outflows 6,273,587 4,899,682 (1,373,905) -21.9% Total Deferred Outflows 6,273,587 4,899,682 (1,373,905) -21.9% Current liabilities 1,507,788 1,424,024 (83,764) -5.6%
Net pension liability 10,852,496 9,093,745 (1,758,751) -16.2% Net OPEB liability 154,857 189,497 34,640 100.0%
Long-term liabilities 4,390,187 4,083,586 (306,601) -7.0% Total Liabilities 16,905,328 14,790,852 (2,114,476) -12.5% Deferred Inflows 2,001,251 2,653,235 651,984 32.6%
Total Deferred Inflows 2,001,251 2,653,235 651,984 32.6% Net position:

Net investment in capital assets 20,045,245 20,788,637 743,392 3.7% Restricted 7,037,620 7,682,708 645,088 9.2%
Unrestricted 3,536,571 3,663,660 127,089 3.6%
Total Net Position $ 30,619,436 $ 32,135,005 $ 1,515,569 4.9% Governmental Activities
Yreka City Council Agenda
May 6, 2025

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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
2022-2023 2023-2024
2022-2023 as
the base year
Current assets and other assets $ 12,777,408 $ 17,517,774 $ 4,740,366 37.1% Restricted assets 550,000 910,000 360,000 65.5%
Non-current assets 38,908,402 45,328,215 6,419,813 16.5% Total Assets 52,235,810 63,755,989 11,520,179 22.1%
Deferred Outflows 1,983,765 1,812,375 (171,390) -8.6%
Total Deferred Outflows 1,983,765 1,812,375 (171,390) -8.6% Current liabilities 387,860 1,231,081 843,221 217.4%
Net pension liability 3,147,293 3,419,825 272,532 8.7%
Net OPEB liability 90,948 121,155 30,207 100.0%
Long-term liabilities 15,611,103 15,135,751 (475,352) -3.0% Total Liabilities 19,237,204 19,907,812 670,608 3.5%
Deferred Inflows 1,026,024 795,977 (230,047) -22.4%
Total Deferred Inflows 1,026,024 795,977 (230,047) -22.4% Net position:

Net investment in capital assets 23,302,309 30,260,515 6,958,206 29.9% Restricted 550,000 910,000 360,000 65.5%
Unrestricted 10,104,038 13,694,060 3,590,022 35.5%
Total Net Position $ 33,956,347 $ 44,864,575 $ 10,908,228 32.1% Business-Type Activities
Yreka City Council Agenda
May 6, 2025

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Management’s Discussion and Analysis
-12-
Comparison of Government Wide Revenues:

Total primary government revenue increased $9,080,179 from $23,238,379 in 2022-23 to $32,318,558 in 2023-24.
2022-2023 2023-2024
Year over
Year Change
Governmental Activities:

Program Revenue
Charges for services $ 986,591 $ 1,290,357 $ 303,766
Operating grants and contributions 1,926,955 2,505,894 578,939 Capital grants and contributions 432,412 730,386 297,974 Total Program Revenue 3,345,958 4,526,637 1,180,679
General Revenue
Taxes:

Property 2,140,940 2,269,134 128,194
Sales and use 4,451,192 4,343,898 (107,294)
Transient occupancy taxes 1,118,525 1,508,855 390,330
Franchise taxes 314,153 355,203 41,050
Interest and investment earnings 287,160 821,941 534,781 Miscellaneous 203,136 207,605 4,469
Gain (loss) on disposal of
capital assets (6,732) - 6,732
Transfers (20,590) (579,172) (558,582)
Total General Revenues and Transfers 8,487,784 8,927,464 439,680 Total Governmental Activities 11,833,742 13,454,101 1,620,359 Business-Type Activities:

Program Revenue
Charges for services 6,180,933 6,348,476 167,543
Operating grants and contributions 4,864,029 11,463,849 6,599,820 Total Program Revenue 11,044,962 17,812,325 6,767,363
General Revenue
Interest and investment earnings 338,779 451,606 112,827 Miscellaneous revenue 306 21,354 21,048
Transfers 20,590 579,172 558,582
Total General Revenues and Transfers 359,675 1,052,132 692,457 Total Business-Type Activities 11,404,637 18,864,457 7,459,820 Total Primary Government $ 23,238,379 $ 32,318,558 $ 9,080,179 Yreka City Council Agenda
May 6, 2025

City of Yreka
Management’s Discussion and Analysis
-13-
Governmental Activities
Governmental activities program revenue increased $1,180,679. The increase of $303,766 charges for fees and services (development impact fee revenue) and $578,939 operating grants and contributions (reimbursement mutual aid response for public safety). Capital grants increased by $297,974 reflective of one-time revenue.

Governmental activities general revenues increased $439,680. • Sales tax decreased $107,294 from the previous earnings in 2022-23, decreased construction projects in the City has led to a decrease in purchasing. • Investment earnings increased $534,781 primarily due to changes in portfolio valuation for unrealized losses due to higher rates on CD’s.
• Net transfers out increased by $558,582 in 2023-2024 due to having one-time development impact fees transfers to the enterprise funds.

Business-Type Activities
Business-type activities program revenue increased $6,767,363. Charges for services increased $167,543, due to schedule rate increases. Revenue from capital grants increased $6,599,820.

Business-type activities general revenue increased $692,457. In 2023-24 market rates increased causing $12,827 mark to market valuation gain.

Comparison of Government-Wide Program Expenses:

Primary government expenses increased $1,620,800 from $18,240,523 in 2022-23 to $19,861,323 in 2023-

24. 2022-2023 2023-2024
Year over
Year Change
Governmental Activities:

Program Expense
General government $ 1,421,168 $ 1,402,675 $ (18,493)
Public safety 5,900,294 6,134,531 234,237
Public ways and facilities 2,132,146 1,833,233 (298,913) Culture and recreation 735,290 960,765 225,475
Community development 1,132,463 1,422,918 290,455
Interest on long-term debt 167,418 158,504 (8,914)
Total Governmental Activities 11,488,779 11,912,626 423,847 Business-Type Activities:

Program Expense
Sewer 2,969,264 3,683,839 714,575
Water 3,782,480 4,264,858 482,378
Total Business-Type Activities 6,751,744 7,948,697 1,196,953 Total Primary Government $ 18,240,523 $ 19,861,323 $ 1,620,800 Yreka City Council Agenda
May 6, 2025

City of Yreka
Management’s Discussion and Analysis
-14-
Functional expenses for governmental activities increased $423,847 from $11,488,779 in 2022-23 to $11,912,626 in 2023-24.

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 decreased $18,493.
• Public safety increased $234,237, primarily due to significant increases in pension liability, workman’s comp and operating expenses.
• Public ways and facilities expenses decreased $298,913. • Culture and recreation expense increased $225,475.
• Community development expense increased $290,455, significant increase to professional and contractual services in connection with the update of the City’s general plan. Additionally, increased community assistance expenses.
• Interest on long-term debt decreased $8,914.

Functional expenses for business-type activities increased $1,196,953 from $6,751,744 in 2022-23 to $7,948,697 in 2023-24.
• Sewer program expense increased $714,575.
• Water program expense increased $482,378.

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.

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 $19,114,233. The following describes the fund balances designations:

Nonspendable: The nonspendable governmental fund balances for the City total $122,210 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.

Yreka City Council Agenda
May 6, 2025

City of Yreka
Management’s Discussion and Analysis
-15-
Restricted: The restricted governmental fund balances for the City total $5,488,707. Of the $1,039,923 General Fund balance, $631,666 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 $0.

Assigned: The restricted fund balances for the City are $3,339,112. 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 $10,164,204 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 $44,864,575, and the unrestricted net position was $13,694,060. In the statement on Cash Flows, page 34-35, the net decrease in cash shows a net decrease of $3,669,633. The sewer cash balance decreased $2,467,963. The water utility proprietary funds cash balance decreased $1,201,670. 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
May 6, 2025

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.

General Fund:
• Total revenues were $9,579,242 in the original budget, $9,871,549 in the final budget and $10,843,612 for actuals.
• The revenue increase of $292,307 in the final budget to adopted budget is primarily due to increases in intergovernmental revenue.
• The revenue increase of $972,063 in the actual to final budget is primarily due to increases in transit occupancy taxes, “lodging tax” of $390,330. Property tax revenue increased $128,194, meanwhile sales tax decreased $107,294. Intergovernmental revenue increased in the actual to final budget $169,598. Unanticipated, COPS supplemental income was received. • Total expenses were $8,526,382 in the original budget, $9,099,154 in the final budget and $8,892,677 for actuals.
(Unfavorable) Variance With
General Fund Original Final Actual Final to Org. Actual to Final Revenue $ 9,579,242 $ 9,871,549 $ 10,843,612 $ 292,307 $ 972,063 Expense 8,526,382 9,099,154 8,892,677 (572,772) 206,477 Excess (deficiency) of revenue over (under) expenses 1,052,860 772,395 1,950,935 (280,465) 1,178,540 Other Financing Sources and (Uses) (1,608,626) (1,605,626) (1,496,584) 3,000 109,042 Net Change in Fund Balance $ (555,766) $ (833,231) $ 454,351 $ (277,465) $ 1,287,582 (Unfavorable) Variance With
Special Grants Original Final Actual Final to Org. Actual to Final Revenue $ 3,133,600 $ 3,133,600 $ 1,326,141 $ - $ (1,807,459) Expense 6,222,650 6,222,650 1,851,133 - 4,371,517
Excess (deficiency) of revenue over (under) expenses (3,089,050) (3,089,050) (524,992) - 2,564,058 Other Financing Sources and (Uses) 1,926,597 1,926,597 276,597 - (1,650,000) Net Change in Fund Balance $ (1,162,453) $ (1,162,453) $ (248,395) $ - $ 914,058 (Unfavorable) Variance With
Special Revenue Original Final Actual Final to Org. Actual to Final Revenue $ 614,000 $ 614,000 $ 802,576 $ - $ 188,576
Expense 445,726 565,576 564,580 (119,850) 996
Excess (deficiency) of revenue over (under) expenses 168,274 48,424 237,996 (119,850) 189,572 Other Financing Sources and (Uses) (9,500) (73,117) (141,214) (63,617) (68,097) Net Change in Fund Balance $ 158,774 $ (24,693) $ 96,782 $ (183,467) $ 121,475 (Unfavorable) Variance With
Streets and Roads Original Final Actual Final to Org. Actual to Final Revenue $ 660,400 $ 660,400 $ 929,648 $ - $ 269,248
Expense 2,510,014 2,510,014 1,207,131 - 1,302,883
Excess (deficiency) of revenue over (under) expenses (1,849,614) (1,849,614) (277,483) - 1,572,131 Other Financing Sources and (Uses) 782,029 782,029 782,029 - - Net Change in Fund Balance $ (1,067,585) $ (1,067,585) $ 504,546 $ - $ 1,572,131 Schedule of Revenues and Expenditures – Budget to Actual 2023-2024 Yreka City Council Agenda
May 6, 2025

City of Yreka
Management’s Discussion and Analysis
-17-
• The expense increased by $572,772 in the final budget to adopted budget in code enforcement $149,038 due to increased enforcement. Police increased $171,894 in part due to the purchase of four vehicles previously budgeted for two but due to manufacturing delays were all purchased in the same year.
• Other Financing Sources and (Uses) were ($1,608,626) in the original budget, ($1,605,626) in the final budget and ($1,496,584) for actuals.
• The change in the General Fund balance was ($555,766) in the original budget, ($833,231) in the final budget and $454,351 for actuals. The increase in revenues is mainly attributable to transient occupancy tax and investment earnings.

Special Grant Fund:
• Special grant funds were not a major special revenue fund in fiscal year 2023-2024.

Special Revenue Fund:
• Revenues were $614,000 in the original budget, $614,000 in the final budget and $802,576 for actuals.

The increase in revenues is mainly attributable to the increase in licenses and permits, due to increased compliance.
• Expenses were $445,726 in the original budget and $565,576 in the final budget, and $564,580 for actuals.
• Other Financing Sources and (Uses) were $(9,500) in the original budget, ($73,117) in the final budget and ($141,214) for actuals. Additional transfers were made to backfill the City’s portion of projects.

Streets and Roads Fund:
• Revenues were $660,400 in the original budget, $660,400 in the final budget and $929,648 for actuals. • Expenses were $2,510,014 in the original budget, $2,510,014 in the final budget and $1,207,131 for actuals.
• Other financing sources were $782,029 in the original budget and $782,029 in the final budget and actuals that reflects a transfer in of $782,029 from the general operating fund.

Yreka City Council Agenda
May 6, 2025

City of Yreka
Management’s Discussion and Analysis
-18-
Capital Assets and Debt Administration
Changes in Capital Assets
The City of Yreka’s investment in capital assets for its governmental and business type activities as of June 30, 2024, amounts to $68,820,647 (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.

Balance
June 30, 2023 Additions Retirements
Transfers/
Adjustments
Balance
June 30, 2024
Governmental Activities:

Capital assets not being depreciated;
Land $ 2,204,965 $ - $ - $ - $ 2,204,965
Construction in Progress 2,020,814 1,083,455 - (313,726) 2,790,543 Total Capital Assets, Not Being Depreciated 4,225,779 1,083,455 - (313,726) 4,995,508 Capital assets being depreciated;
Building and Structures 11,764,744 - - - 11,764,744
Machinery and Equipment 5,942,350 765,671 - 291,423 6,999,444 Subscription-based information technology
arrangements 88,686 - - (66,675) 22,011
Infrastructure 34,131,267 - - - 34,131,267
Governmental Activities Capital Assets 56,152,826 1,849,126 (88,978) - 57,912,974 Less Accumulated Depreciation (33,232,559) (1,204,340) (16,357) - (34,453,256) Governmental Activities Capital Assets, Net 22,920,267 644,786 (72,621) - 23,492,432 Business-Type Activities:

Capital assets not being depreciated;
Land 374,428 - - 374,428 -
Construction in Progress 10,010,873 7,461,467 (174,239) - 17,298,101 Total Capital Assets, Not Being Depreciated 10,385,301 7,461,467 (174,239) - 17,672,529 Capital assets being depreciated;
Building and Structures 12,493,673 - - 12,493,673 -
Machinery and Equipment 8,790,544 450,915 10 9,241,469 - Subscription-based information technology
arrangements 29,898 - (29,898) - -
Infrastructure 35,671,087 - 174,239 - 35,845,326
Total Business Activities Capital Assets 67,370,503 7,912,382 (29,898) 10 75,252,997 Less Accumulated Depreciation (28,462,101) (1,465,089) 2,408 (29,924,782) - Business-Type Capital Assets, Net 38,908,402 6,447,293 2,418 45,328,215 (29,898) Total Capital Assets, Net $ 61,828,669 $ 7,092,079 2,418$ (102,519) $ $ 68,820,647 Yreka City Council Agenda
May 6, 2025

City of Yreka
Management’s Discussion and Analysis
-19-
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 continues to improve the safety and reliability of its water and sewer systems, the City has entered into grants 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
• Transfers – There were transfers in the current year due to change in methodology and corrections. • Construction in Progress - At the end of 2023-2024 CIP totals $2,790,543. o Of the outstanding construction in progress, $1,539,370 relates to the Flood Hazard Reduction Grant for the flood corridor development project along Yreka Creek. • Machinery and Equipment - The City acquired four new vehicles for the Police Department totaling $292,737. Additionally, a new server for city hall was purchased and an Air Curtain Burner totaling $225,232.

Business-Type Activities
• Construction in Progress - Additions to construction in process projects were $7,461,467 for water distribution and sewer collection systems capital projects, primarily relating to water $2,281,561 for E.

Lennox Water construction, $4,582,958 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 the Clean Water State Revolving Fund totaling $205,384. • Transfers – the completion of the highway 3 replacement project in the amount of $174,239. • Machinery and Equipment - The City acquired equipment including loader accessories, an excavator, and two vehicles.

Yreka City Council Agenda
May 6, 2025

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, 2023 Additions Reductions June 30, 2024
Current
Portion
Governmental Activities:

Compensated Absences $ 292,799 $ 319,900 $ 346,200 $ 266,499 $ 266,498 Capital Lease 266,307 - 87,513 178,794 88,765
Loans Payable - Governmental
Agencies 1,222,366 - 109,073 1,113,293 114,956
Certificates of participation -
USDA Rural Development 2,562,000 - 37,000 2,525,000 38,000 Subscription-based information
technology arrangements 46,715 (46,715) - - -
Governmental Activities 4,390,187 273,185 579,786 4,083,586 508,219 Business-Type Activities:

Compensated Absences 68,310 112,872 113,131 68,051 68,051 Capital Lease 204,229 - 83,529 120,700 84,909
Loans Payable - Governmental
Agencies - - - - -
Certificates of participation -
USDA Rural Development 15,319,000 - 372,000 14,947,000 336,000 Subscription-based information
tachnology arrangements 19,564 (19,564) - - -
Business-Type Activities 15,611,103 93,308 568,660 15,135,751 488,960 Total Long-Term Liabilities $ 20,001,290 $ 366,493 $ 1,148,446 $ 19,219,337 $ 997,179 Yreka City Council Agenda
May 6, 2025

City of Yreka
Management’s Discussion and Analysis
-21-
North Street Water Main replacement, August 29,
2011
At the end of the 2023-2024, total longterm liabilities were $19,219,337. That includes $997,179 for the current
portion of long-term debt and
compensated absences. The City’s
balances for compensated absences
decreased by $26,300 for governmental
activities and decreased by $259 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 2024-2025:

Below are highlights for fiscal year 2024-25 from the City’s biannual budget, adopted by the City Council on August 2, 2023 and then amended November 19, 2024. The budget can be found on the City’s website, http://ci.yreka.ca.us .

City of Yreka
2024-25 Adopted Budget
For Governmental Activities, the City projects a $290,661 increase in fund balances. Reserves have been accumulated in prior years for planned system capital improvements within the Special Grant fund for future improvements.

Adopted
Budgeted
Revenue
Adopted
Budgeted
Expense
Excess of
Revenue over
Expense
Total General Fund $ 11,087,271 $ 10,887,621 $ 199,650
Total Special Rev. Fund 981,500 611,471 $370,029
Total Streets and Roads 1,462,341 1,462,341 $0
Special Grant Fund 2,210,800 2,489,818 ($279,018)
15,741,912 15,451,251 290,661
Sewer Fund 7,532,999 8,815,046 (1,282,047)
Water Fund 9,399,316 9,627,482 (228,166)
Total Business-Type Funds 16,932,315 18,442,528 (1,510,213) All Funds Combined $ 32,674,227 $ 33,893,779 $ (1,219,552) Total Governmental Activity Funds
Yreka City Council Agenda
May 6, 2025

City of Yreka
Management’s Discussion and Analysis
-22-
For Business-Type Activities, the City anticipates a $1,510,213 decrease to fund balance reserves. The decrease in the business-type funds reflects operational activity that was previously anticipated and held in reserves.

General Fund Revenue Projections:

General Fund - Fiscal Year Mainstream Revenue Comparison Horizon Issues for 2024-2025:

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. Implementation of a fully paid fire staff and the beginning of construction of a new fire hall.

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.

Actual
21-22
Actual
22-23
Actual
23-24
Adopted
Budget
24-25
Property Tax (secured & unsec. roll) $ 1,268,795 $ 1,395,030 $ 1,465,429 $ 1,383,425 Property Tax arising from MVLF shift (1) 691,566 737,934 794,038 740,000 Transient Lodging 1,264,820 1,118,525 1,094,011 1,200,000 Sales Tax 4,294,850 4,451,192 4,343,898 4,363,000
Franchises 268,153 314,153 355,203 300,000
Licenses and Permits 275,499 313,461 378,323 260,700
Fines and Forfeitures 6,450 (4,387) (7,671) 250
Use of Money and Property 90,383 193,670 667,014 160,800 Intergovernmental 971,434 1,050,859 1,466,822 1,099,617 User Fees and Charges 76,534 58,003 136,941 65,150
Administrative Cost Recovery (2) 526,691 368,391 528,000 573,782 Other Revenues 364,680 15,180 196,092 206,000
Subtotal General Fund Revenue $10,099,855 $10,012,011 $11,418,100 $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
May 6, 2025

City of Yreka
Management’s Discussion and Analysis
-23-
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 directed to the City’s Finance Director, 701 Fourth Street, Yreka, CA 96097, website www.yrekaca.gov.

Yreka City Council Agenda
May 6, 2025

Basic Financial Statements
• Government-Wide Financial Statements
Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Statement of Net Position
June 30, 2024
Governmental Business-Type
Activities Activities Totals
ASSETS
Cash and investments $ 17,731,314 $ 6,294,071 $ 24,025,385 Receivables:

Accounts 254,175 682,369 936,544
Intergovernmental 639,698 10,456,475 11,096,173
Interest 197,405 84,859 282,264
Taxes 1,610,510 - 1,610,510
Restricted cash and investments 631,666 910,000 1,541,666 Loans receivable, net 122,210 - 122,210
Capital assets:

Non-depreciable 4,995,508 17,672,529 22,668,037
Depreciable, net 18,496,924 27,655,686 46,152,610
Total capital assets 23,492,432 45,328,215 68,820,647
Total Assets 44,679,410 63,755,989 108,435,399

DEFERRED OUTFLOWS OF RESOURCES
Deferred pension adjustments 4,594,951 1,578,880 6,173,831 Deferred OPEB adjustments 304,731 233,495 538,226
Total Deferred Outflows of Resources 4,899,682 1,812,375 6,712,057

LIABILITIES
Accounts payable 489,742 874,582 1,364,324
Salaries and benefits payable 191,874 - 191,874
Retention payable 16,528 238,062 254,590
Interest payable 22,418 118,437 140,855
Deposits payable 40,642 - 40,642
Unearned revenue 662,820 - 662,820
Long-term liabilities:

Due within one year 508,219 488,960 997,179
Due in more than one year 3,575,367 14,646,791 18,222,158 Net pension liability 9,093,745 3,419,825 12,513,570
Net OPEB liability 189,497 121,155 310,652
Total Liabilities 14,790,852 19,907,812 34,698,664

DEFERRED INFLOWS OF RESOURCES
Deferred pension adjustments 2,521,954 673,373 3,195,327 Deferred OPEB adjustments 131,281 122,604 253,885
Total Deferred Inflows of Resources 2,653,235 795,977 3,449,212 The notes to the basic financial statements are an integral part of this statement. -24-
Continued (Page 1 of 2)
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Statement of Net Position
June 30, 2024
Governmental Business-Type
Activities Activities Totals

NET POSITION
Net investment in capital assets 20,788,637 30,260,515 51,049,152 Restricted for:

General government 601,121 - 601,121
Public safety 1,703,974 - 1,703,974
Public ways and facilities 1,537,030 - 1,537,030
Culture and recreation 34,568 - 34,568
Community development 990,139 - 990,139
Capital projects 2,113,843 - 2,113,843
Debt service 702,033 910,000 1,612,033
Unrestricted 3,663,660 13,694,060 17,357,720
Total Net Position $ 32,135,005 $ 44,864,575 $ 76,999,580 The notes to the basic financial statements are an integral part of this statement. -25-
Continued (Page 2 of 2)
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Statement of Activities
For the Year Ended June 30, 2024
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs: Expenses Services Contributions Contributions Governmental activities:

General government $ 1,402,675 $ 498,060 $ 449,617 $ -
Public safety 6,134,531 448,438 783,878 -
Public ways and facilities 1,833,233 31,694 919,711 730,386 Culture and recreation 960,765 37,145 - -
Community development 1,422,918 275,020 352,688 -
Interest on long-term debt 158,504 - - -
Total Governmental Activities 11,912,626 1,290,357 2,505,894 730,386 Business-type activities:

Sewer 3,683,839 3,256,676 - 6,417,297
Water 4,264,858 3,091,800 - 5,046,552
Total Business-Type Activities 7,948,697 6,348,476 - 11,463,849 Total $ 19,861,323 $ 7,638,833 $ 2,505,894 $ 12,194,235 General Revenues:

Taxes:

Property taxes
Sales and use taxes
Transient occupancy taxes
Franchise taxes
Interest and investment earnings
Miscellaneous
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning
Prior period adjustment
Net Position - Beginning, Restated
Net Position - Ending
The notes to the basic financial statements are an integral part of this statement. -26-
Yreka City Council Agenda
May 6, 2025

Net (Expense) Revenue and
Changes in Net Position
Governmental Business-Type
Activities Activities Totals
$ (454,998) $ - $ (454,998)
(4,902,215) - (4,902,215)
(151,442) - (151,442)
(923,620) - (923,620)
(795,210) - (795,210)
(158,504) - (158,504)
(7,385,989) - (7,385,989)
- 5,990,134 5,990,134
- 3,873,494 3,873,494
- 9,863,628 9,863,628
(7,385,989) 9,863,628 2,477,639
2,269,134 - 2,269,134
4,343,898 - 4,343,898
1,508,855 - 1,508,855
355,203 - 355,203
821,941 451,606 1,273,547
207,605 21,354 228,959
(579,172) 579,172 -
8,927,464 1,052,132 9,979,596
1,541,475 10,915,760 12,457,235
30,619,436 33,956,347 64,575,783
(25,906) (7,532) (33,438)
30,593,530 33,948,815 64,542,345
$ 32,135,005 $ 44,864,575 $ 76,999,580
The notes to the basic financial statements are an integral part of this statement. -26-
Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

Basic Financial Statements
• Fund Financial Statements
Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Balance Sheet
Governmental Funds
June 30, 2024
Streets Special Special
General and Roads Revenue Grants Totals
ASSETS
Cash and investments $ 11,389,692 $ 1,841,034 $ 1,630,737 $ 2,869,851 $ 17,731,314 Receivables:

Accounts 201,514 - 50,169 2,492 254,175
Intergovernmental 99,127 43,670 - 496,901 639,698
Interest 148,390 21,523 17,917 9,575 197,405
Taxes 1,573,299 37,211 - - 1,610,510
Restricted cash and investments 631,666 - - - 631,666
Loans receivable, net - - - 122,210 122,210
Total Assets $ 14,043,688 $ 1,943,438 $ 1,698,823 $ 3,501,029 $ 21,186,978

LIABILITIES
Accounts payable $ 207,333 $ 11,172 $ 7,607 $ 263,630 $ 489,742 Salaries and benefits payable 191,874 - - - 191,874
Retention payable - - - 16,528 16,528
Interest payable 22,418 - - - 22,418
Deposits payable 40,642 - - - 40,642
Unearned revenue 483,189 - - 179,631 662,820
Total Liabilities 945,456 11,172 7,607 459,789 1,424,024

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 495,486 - - 153,235 648,721
Total Deferred Inflows of Resources 495,486 - - 153,235 648,721

FUND BALANCES
Nonspendable - - - 122,210 122,210
Restricted 1,039,923 1,932,266 1,691,216 825,302 5,488,707 Assigned 1,398,619 - - 1,940,493 3,339,112
Unassigned 10,164,204 - - - 10,164,204
Total Fund Balances 12,602,746 1,932,266 1,691,216 2,888,005 19,114,233 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 14,043,688 $ 1,943,438 $ 1,698,823 $ 3,501,029 $ 21,186,978 The notes to the basic financial statements are an integral part of this statement. -27-
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Reconciliation of the Governmental Funds Balance
Sheet to the Government-Wide Statement of
Net Position - Governmental Activities
June 30, 2024
Total Fund Balances - Total Governmental Funds $ 19,114,233 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. 23,492,432
Other long-term assets are not available to pay for current period expenditures and therefore are reported as unavailable revenue in the governmental funds. 648,721 Deferred outflows of resources related to pension and OPEB are not reported in the governmental funds. 4,899,682 Deferred inflows of resources related to pension and OPEB are not reported in the governmental funds. (2,653,235) Certain liabilities are not due and payable in the current period and therefore are not reported in the governmental funds.

Compensated absences (266,499)
Loans payable (1,113,293)
Certificates of participation (2,525,000)
Finance purchases (178,794)
Net pension liability (9,093,745)
Net OPEB liability (189,497)
Net Position of Governmental Activities $ 32,135,005
The notes to the basic financial statements are an integral part of this statement. -28-
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Statement of Revenues, Expenditures and
Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2024
Streets Special Special
General and Roads Revenue Grants Totals

REVENUES
Taxes and assessments $ 8,052,579 $ - $ 346,012 $ - $ 8,398,591 Licenses and permits 378,323 - 166,268 - 544,591
Fines and forfeitures (2,171) 29,293 - - 27,122
Use of money 666,310 79,142 49,102 27,387 821,941
Intergovernmental 1,440,760 789,978 - 1,298,754 3,529,492 Charges for services 131,441 - 241,192 - 372,633
Other revenues 176,370 31,235 - - 207,605
Total Revenues 10,843,612 929,648 802,574 1,326,141 13,901,975

EXPENDITURES
Current:

General government 979,469 - 32,729 - 1,012,198
Public safety 5,721,768 - 46,274 9,499 5,777,541
Public ways and facilities 71,506 1,197,164 - - 1,268,670 Culture and recreation 793,801 - - - 793,801
Community development 634,731 - - 787,363 1,422,094
Debt service:

Principal 37,000 - 196,586 - 233,586
Interest and other charges 89,364 - 69,140 - 158,504
Capital outlay 565,038 9,967 219,850 1,054,271 1,849,126 Total Expenditures 8,892,677 1,207,131 564,579 1,851,133 12,515,520 Excess of Revenues Over (Under)
Expenditures 1,950,935 (277,483) 237,995 (524,992) 1,386,455

OTHER FINANCING SOURCES (USES)
Transfers in - 782,029 - 276,597 1,058,626
Transfers out (1,496,584) - (141,214) - (1,637,798)
Total Other Financing Sources (Uses) (1,496,584) 782,029 (141,214) 276,597 (579,172) Net Change in Fund Balances 454,351 504,546 96,781 (248,395) 807,283 Fund Balances - Beginning 12,148,395 1,427,720 1,594,435 3,136,400 18,306,950 Fund Balances - Ending $ 12,602,746 $ 1,932,266 $ 1,691,216 $ 2,888,005 $ 19,114,233 The notes to the basic financial statements are an integral part of this statement. -29-
Yreka City Council Agenda
May 6, 2025

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, 2024
Net Change in Fund Balances - Total Governmental Funds $ 807,283 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 1,849,126
Less current year depreciation (1,204,340)
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 233,586
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 131,298
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 (1,373,736) Changes in deferred outflows of resources related to OPEB (169) Changes in deferred inflows of resources related to pension (683,199) Changes in deferred inflows of resources related to OPEB 31,215 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 26,300
Change in net pension liability 1,758,751
Change in net OPEB liability/asset (34,640)
Change in Net Position of Governmental Activities $ 1,541,475 The notes to the basic financial statements are an integral part of this statement. -30-
Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Statement of Net Position
Proprietary Funds
June 30, 2024
Business-Type Activities - Enterprise Funds
Sewer Water Totals
ASSETS
Current Assets:

Cash and investments $ 2,224,768 $ 4,069,303 $ 6,294,071 Receivables:

Accounts 284,454 397,915 682,369
Intergovernmental 5,655,352 4,801,123 10,456,475
Interest 38,323 46,536 84,859
Total Current Assets 8,202,897 9,314,877 17,517,774
Noncurrent Assets:

Restricted cash and investments 610,000 300,000 910,000 Capital assets:

Non-depreciable 6,749,257 10,923,272 17,672,529
Depreciable, net 15,867,749 11,787,937 27,655,686
Total capital assets 22,617,006 22,711,209 45,328,215
Total Noncurrent Assets 23,227,006 23,011,209 46,238,215 Total Assets 31,429,903 32,326,086 63,755,989

DEFERRED OUTFLOWS OF RESOURCES
Deferred pension adjustments 714,508 864,372 1,578,880
Deferred OPEB adjustments 113,754 119,741 233,495
Total Deferred Outflows of Resources 828,262 984,113 1,812,375

LIABILITIES
Current Liabilities:

Accounts payable 699,296 175,286 874,582
Retention payable 238,062 - 238,062
Interest payable 58,823 59,614 118,437
Compensated absences 13,177 54,874 68,051
Certificates of participation 191,000 145,000 336,000
Finance purchases - 84,909 84,909
Total Current Liabilities 1,200,358 519,683 1,720,041
The notes to the basic financial statements are an integral part of this statement. -31-
Continued (Page 1 of 2)
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Statement of Net Position
Proprietary Funds
June 30, 2024
Business-Type Activities - Enterprise Funds
Sewer Water Totals
Noncurrent Liabilities:

Certificates of participation 9,457,000 5,154,000 14,611,000 Financed purchases - 35,791 35,791
Net pension liability 1,547,611 1,872,214 3,419,825
Net OPEB liability 59,024 62,131 121,155
Total Noncurrent Liabilities 11,063,635 7,124,136 18,187,771 Total Liabilities 12,263,993 7,643,819 19,907,812

DEFERRED INFLOWS OF RESOURCES
Deferred pension adjustments 304,729 368,644 673,373
Deferred OPEB adjustments 59,730 62,874 122,604
Total Deferred Inflows of Resources 364,459 431,518 795,977

NET POSITION
Net investment in capital assets 12,969,006 17,291,509 30,260,515 Restricted for debt service 610,000 300,000 910,000
Unrestricted 6,050,707 7,643,353 13,694,060
Total Net Position $ 19,629,713 $ 25,234,862 $ 44,864,575 The notes to the basic financial statements are an integral part of this statement. -32-
Continued (Page 2 of 2)
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Statement of Revenues, Expenses and
Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2024
Business-Type Activities - Enterprise Funds
Sewer Water Totals

OPERATING REVENUES
Charges for services $ 3,091,800 $ 3,256,676 $ 6,348,476 Other revenues 4,975 16,379 21,354
Total Operating Revenues 3,096,775 3,273,055 6,369,830

OPERATING EXPENSES
Engineering 977 - 977
Power and water 254,070 265,310 519,380
Treatment 1,119,635 1,472,173 2,591,808
Sewer collection 488,683 - 488,683
Water distribution - 750,408 750,408
Administration and billing 872,530 924,661 1,797,191
Depreciation 734,734 730,355 1,465,089
Total Operating Expenses 3,470,629 4,142,907 7,613,536
Operating Income (Loss) (373,854) (869,852) (1,243,706)

NON-OPERATING REVENUES (EXPENSES)
Intergovernmental 6,417,297 5,046,552 11,463,849
Interest income 188,646 262,960 451,606
Interest expense (213,210) (121,951) (335,161)
Total Non-Operating Revenues (Expenses) 6,392,733 5,187,561 11,580,294 Income (Loss) Before Transfers 6,018,879 4,317,709 10,336,588 Transfers in 10,628 568,544 579,172
Change in Net Position 6,029,507 4,886,253 10,915,760
Fund Balances - Beginning 13,603,990 20,352,357 33,956,347 Prior period adjustment (3,784) (3,748) (7,532)
Fund Balances - Beginning, Restated 13,600,206 20,348,609 33,948,815 Fund Balances - Ending $ 19,629,713 $ 25,234,862 $ 44,864,575 The notes to the basic financial statements are an integral part of this statement. -33-
Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Business-Type Activities - Enterprise Funds
Sewer Water Totals

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 3,088,162 $ 3,240,623 $ 6,328,785 Payments to suppliers (2,181,157) (3,331,824) (5,512,981) Payments to employees 198,949 44,874 243,823
Net Cash Provided (Used) by Operating Activities 1,105,954 (46,327) 1,059,627

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Intergovernmental revenues received 1,613,945 1,124,311 2,738,256 Transfers from other funds 10,628 568,544 579,172
Net Cash Provided (Used) by Non-Capital
Financing Activities 1,624,573 1,692,855 3,317,428

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of capital assets (4,945,463) (2,755,972) (7,701,435) Principal paid on debt (230,000) (225,529) (455,529)
Interest paid on debt (214,420) (123,549) (337,969)
Net Cash Provided (Used) by Capital and
Related Financing Activities (5,389,883) (3,105,050) (8,494,933)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 191,393 256,852 448,245
Net Cash Provided (Used) by Investing Activities 191,393 256,852 448,245 Net Increase (Decrease) in Cash and Cash Equivalents (2,467,963) (1,201,670) (3,669,633) Balances - Beginning 5,302,731 5,570,973 10,873,704
.

Balances - Ending $ 2,834,768 $ 4,369,303 $ 7,204,071
The notes to the basic financial statements are an integral part of this statement. -34-
Continued (Page 1 of 2)
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2024
Business-Type Activities - Enterprise Funds
Sewer Water Totals

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED (USED) BY OPERATING

ACTIVITIES
Operating income (loss) $ (373,854) $ (869,852) $ (1,243,706) Adjustments to reconcile operating income to net cash
provided (used) by operating activities:

Depreciation 734,734 730,355 1,465,089
Decrease (increase) in:

Accounts receivable (8,613) (32,432) (41,045)
Deferred outflows - pension adjustments 7,884 163,607 171,491 Deferred outflows - OPEB adjustments (6,519) 6,418 (101) Increase (decrease) in:

Accounts payable 554,738 80,728 635,466
Compensated absences (2,360) 2,101 (259)
Net pension liability 248,698 23,834 272,532
Net OPEB liability 17,237 12,970 30,207
Deferred inflows - pension adjustments (56,912) (145,978) (202,890) Deferred inflows - OPEB adjustments (9,079) (18,078) (27,157) Net Cash Provided (Used) by Operating Activities $ 1,105,954 $ (46,327) $ 1,059,627 The notes to the basic financial statements are an integral part of this statement. -35-
Continued (Page 2 of 2)
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
Custodial
Fund
Court
Nonadjudicated
Seizure Fund
ASSETS
Cash and investments $ 3,717
Total Assets 3,717

LIABILITIES
Accounts payable -
Total Liabilities -

NET POSITION
Restricted for individuals, organizations, or other governments 3,717 Total Net Position $ 3,717
The notes to the basic financial statements are an integral part of this statement. -36-
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2024
Custodial
Fund
Court
Nonadjudicated
Seizure Fund

ADDITIONS
Interest and investment income $ -
Total Addisions -

DEDUCTIONS
Distribution of funds held for others -
Total Deductions -
Total Increase (Decrease) in Fiduciary Net Position -
Total Net Position - Beginning 3,717
Total Net Position - Ending $ 3,717
The notes to the basic financial statements are an integral part of this statement. -37-
Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

Basic Financial Statements
• Notes to Basic Financial Statements
Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-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
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-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
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-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
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-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 $631,666.

Restricted assets in the proprietary funds represent cash and investments held in the Sewer fund for debt service of $610,000 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 $122,210 was recorded as loans receivable at June 30, 2024. Of this amount, $122,210 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 $107,484.

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
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-42-
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
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-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, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022 to June 30, 2023
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
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-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, 2023
Measurement Period June 30, 2022 to June 30, 2023
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 assets that applies to future periods 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 assets that applies to future periods 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. 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.

Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-45-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) R. Implementation of Governmental Accounting Standards Board (GASB) Statements (Continued) Statement No. 100, Accounting Changes and Error Corrections. The requirements of this Statement will improve the clarity of the accounting and financial reporting requirements for accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users for making decisions or assessing accountability. In addition, the display and note disclosure requirements will result in more consistent, decision useful, understandable, and comprehensive information for users about accounting changes and error corrections.

S. Future Accounting Pronouncements
The following GASB Statements will be implemented, if applicable, in future financial statements:

Statement No. 101 “Compensated Absences” The requirements of this statement are effective for fiscal years beginning after December 15, 2023. (FY 24/25)
Statement No. 102 “Certain Risk Disclosures” The requirements of this statement are effective for fiscal years beginning after June 15, 2024. (FY 24/25)
Statement No. 103 “Financial Reporting Model Improvements” The requirements of this statement are effective for fiscal years beginning after June 15, 2025. (FY 25/26) Statement No. 104 “Disclosure of Certain Capital Assets” The requirements of this statement are effective for fiscal years beginning after June 15, 2025. (FY 25/26) NOTE 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Restatement of Net Position/Fund Balance
During the fiscal year ended June 30, 2024, the City determined that there were GASB 96 subscriptionbased information technology arrangements that did not meet the City’s established threshold included in the prior year. Therefore, subscription-based technology arrangement assets, including amortization, and the related subscription-based technology arrangement liabilities were overstated by $11,135 for the fiscal year ended June 30, 2023. In addition, the City determined that soil remediation expenditures previously reported as construction in progress no longer were considered construction in progress or capital assets.

Therefore, capital assets were overstated by $22,303. The effect of the corrections is shown below.

During the fiscal year 2024, error corrections resulted in restatements of beginning fund balance and net position as follows:

Reporting Units Affected by Adjustments to
and Restatements of Beginning Balances
Governmental
Activities
Business-Type
Activities
Net Position, June 30, 2023 as previously reported $ 30,619,436 $ 33,956,347 Error correction of GASB 96 subscription-based information technology arrangements ( 3,603) ( 7,532)
Error correction of construction in progress ( 22,303) - Net Position, July 1, 2023 as restated $ 30,593,530 $ 33,948,815 Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-46-
NOTE 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED) A. Restatement of Net Position/Fund Balance (Continued) The impact of the restatement on the fund balance of the fund financial statements as previously reported is presented below:

Sewer Water
Fund Balance, June 30, 2023 as previously reported $ 13,603,990 $ 20,352,357 Adjustment associated with:

Removal of subscription-based information technology arrangements ( 3,784) ( 3,748) Total Adjustments ( 3,784) ( 3,748)
Fund Balance, July 1, 2023 as restated $ 13,600,206 $ 20,348,609 NOTE 3: CASH AND INVESTMENTS
A. Financial Statement Presentation
As of June 30, 2024, the City’s cash and investments are reported in the financial statements as follows:

Governmental activities $ 18,362,980
Business-type activities 7,204,071
Fiduciary funds 3,717
Total Cash and Investments $ 25,570,768
As of June 30, 2024, the City’s cash and investments consisted of the following:

Cash:

Cash on hand $ 1,200
Deposits (less outstanding checks) 1,902,727
Total Cash 1,903,927
Investments:

In City’s pool 23,666,841
Total Investments 23,666,841
Total Cash and Investments $ 25,570,768
B. Cash
At year end, the carrying amount of the City’s cash deposits (including amounts in checking accounts) was $1,902,727 and the bank balance was $2,150,681. 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.

Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-47-
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
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.

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, 2024, 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 $ 3,168,291 $ 3,168,291 $ - $ - Total Investments Measured at Fair Value 3,168,291 $ 3,168,291 $ - $ - Investments in External Investment Pool
LAIF 20,498,550
Total Investments $ 23,666,841
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-48-
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
C. Investments (Continued)
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.

As of June 30, 2024, 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% $ 1,221,599 $ 1,946,692 $ 3,168,291 1.87 LAIF Variable 20,498,550 - 20,498,550 -
Total Investments $ 21,720,149 $ 1,946,692 $ 23,666,841 1.87 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 13.39%
LAIF N/A NR NR 86.61%
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, 2024 did not exceed 5 percent.

Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-49-
NOTE 3: 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, 2024, the City’s investment in LAIF valued at amortized cost was $20,498,550 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 $178.0 billion. Of that amount, 97.00 percent is invested in non-derivative financial products and 3.00 percent in structured notes and asset-backed securities.

NOTE 4: CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2024, was as follows:

Balance Adjustments/ Balance
July 1, 2023 Additions Retirements June 30, 2024
Governmental Activities
Capital Assets, Not Being Depreciated
Land $ 2,204,965 $ - $ - $ 2,204,965
Construction in progress 2,020,814 1,083,455 ( 313,726) 2,790,543 Total Capital Assets, Not Being Depreciated 4,225,779 1,083,455 ( 313,726) 4,995,508 Capital Assets, Being Depreciated
Building and structures 11,764,744 - - 11,764,744
Machinery and equipment 5,942,350 765,671 291,423 6,999,444 Subscription-based information technology
arrangements 88,686 - ( 66,675) 22,011
Infrastructure 34,131,267 - - 34,131,267
Total Capital Assets, Being Depreciated 51,927,047 765,671 224,748 52,917,466 Less Accumulated Depreciation For:

Building and structures ( 4,709,211) ( 275,486) - ( 4,984,697) Machinery and equipment ( 3,662,559) ( 377,238) - ( 4,039,797) Subscription-based information technology
arrangements ( 17,906) ( 7,337) 16,357 ( 8,886)
Infrastructure ( 24,842,883) ( 544,279) - ( 25,387,162) Total Accumulated Depreciation ( 33,232,559) ( 1,204,340) 16,357 ( 34,420,542) Total Capital Assets, Being Depreciated, Net 18,694,488 ( 438,669) 241,105 18,496,924 Governmental Activities Capital Assets, Net $ 22,920,267 $ 644,786 ($ 72,621) $ 23,492,432 Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-50-
NOTE 4: CAPITAL ASSETS (CONTINUED)
Balance Adjustments/ Balance
July 1, 2023 Additions Retirements Transfers June 30, 2024 Business-Type Activities
Capital Assets,
Not Being Depreciated
Land $ 374,428 $ - $ - $ - $ 374,428
Construction in progress 10,010,873 7,461,467 - ( 174,239) 17,298,101 Total Capital Assets,
Not Being Depreciated

10,385,301 7,461,467 - ( 174,239) 17,672,529
Capital Assets, Being Depreciated
Building and structures 12,493,673 - - - 12,493,673
Machinery and equipment 8,790,544 450,915 10 - 9,241,469 Subscription-based information
technology arrangements 29,898 - ( 29,898) - -
Infrastructure 35,671,087 - - 174,239 35,845,326
Total Capital Assets,
Being Depreciated

56,985,202 450,915 ( 29,888) 174,239

57,580,468
Less Accumulated
Depreciation For:

Building and structures ( 6,038,954) ( 294,192) - - ( 6,333,146) Machinery and equipment ( 5,818,656) ( 273,728) 2 - ( 6,092,382) Subscription-based information
technology arrangements ( 2,406) - 2,406 - -
Infrastructure ( 16,602,085) ( 897,169) - - ( 17,499,254) Total Accumulated Depreciation ( 28,462,101) ( 1,465,089) 2,408 - ( 29,924,782) Total Capital Assets,
Being Depreciated, Net 28,523,101 ( 1,014,174) ( 27,480) - 27,655,686 Business-Type Activities
Capital Assets, Net $ 38,908,402 $ 6,447,293 ($ 27,480) $ - $ 45,328,215 Depreciation
Depreciation expense was charged to governmental activities as follows:

General government $ 83,424
Public safety 380,433
Public ways and facilities 573,736
Culture and recreation 166,747
Total Depreciation Expense – Governmental Activities $ 1,204,340 Depreciation expense was charged to the business-type activities as follows:

Sewer $ 734,734
Water 730,355
Total Depreciation Expense – Business-Type Activities $ 1,465,089 Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-51-
NOTE 4: CAPITAL ASSETS (CONTINUED)
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.

NOTE 5: 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, 2024:

Transfers In Transfers Out
General fund $ - $ 1,496,584
Streets and Roads 782,029 -
Special Revenue - 141,214
Special Grants 276,597 -
Sewer 10,628 -
Water 568,544 -
Total $ 1,637,798 $ 1,637,798
NOTE 6: UNEARNED REVENUES
At June 30, 2024, the components of unearned revenue were as follows:

Unearned
General Fund
Coronavirus State and Local Fiscal Relief Funds received in advance $ 449,616 Juniper Street Park Restoration Project funding 22,659
Immaterial 10,914
Special Grants
Funds received in advance 80,000
Theater reroofing 99,631
Total $ 662,820
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-52-
NOTE 7: LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the year ended June 30, 2024:

Amounts
Balance Additions/ Balance Due Within
Type of Indebtedness July 1, 2023 Adjustments Retirements June 30, 2024 One Year Governmental Activities
Compensated absences $ 292,799 $ 319,900 ($ 346,200) $ 266,499 $ 266,498 Loans from direct borrowings 1,222,366 - ( 109,073) 1,113,293 114,956 Certificates of participation 2,562,000 - ( 37,000) 2,525,000 38,000 Financed purchases 266,307 - ( 87,513) 178,794 88,765
Subscription-based information
technology arrangements 46,715 ( 46,715) - - -
Total Governmental Activities $ 4,390,187 $ 273,185 ($ 579,786) $ 4,083,586 $ 508,219 Business-Type Activities
Compensated absences $ 68,310 $ 112,872 ($ 113,131) $ 68,051 $ 68,051 Certificates of participation 15,319,000 - ( 372,000) 14,947,000 336,000 Financed purchases 204,229 - ( 83,529) 120,700 84,909
Subscription-based information
technology arrangements 19,564 ( 19,564) - - -
Total Business-Type Activities $ 15,611,103 $ 93,308 ($ 568,660) $ 15,135,751 $ 488,960 Compensated absences are generally liquidated by the fund where the accrued liability occurred. Individual issues of debt payable outstanding at June 30, 2024, 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. $ 1,113,293 Total Loans 1,113,293
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. 2,525,000 Total Pension Obligation Bonds 2,525,000
Total Governmental Activities $ 3,638,293
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. $ 4,188,000
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-53-
NOTE 7: LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities (Continued)
Certificates of Participation (Continued):
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. 5,299,000 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. 5,460,000 Total Certificates of Participation 14,947,000
Total Business-Type Activities $ 14,947,000
Following is a schedule of debt payment requirements to maturity for long-term debt, excluding compensated absences that have indefinite maturities and leases which are reported in Note 8.

Governmental Activities
Loans from Direct Borrowings
Year Ended
June 30 Principal Interest Total
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 141,836 33,164 175,000
2030-2032 473,078 51,922 525,000
Total $ 1,113,293 $ 286,707 $ 1,400,000

Certificates of Participation
Year Ended
June 30 Principal Interest Total
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 44,000 82,775 126,775
2030-2034 242,000 389,830 631,830
2035-2039 285,000 344,575 629,575
2040-2044 340,000 290,990 630,990
2045-2049 404,000 227,150 631,150
2050-2054 480,000 151,340 631,340
2055-2059 570,000 61,250 631,250
Total $ 2,525,000 $ 1,893,255 $ 4,418,255
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-54-
NOTE 7: LONG-TERM LIABILITIES (CONTINUED)
Business-Type Activities
Certificates of Participation
Year Ended
June 30 Principal Interest Totals
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 367,000 294,657 661,657
2030-2034 1,966,000 1,344,051 3,310,051
2035-2039 2,196,000 1,109,846 3,305,846
2040-2044 2,455,000 847,195 3,302,195
2045-2049 2,747,000 552,525 3,299,525
2050-2054 2,222,000 249,650 2,471,650
2055-2059 860,000 103,253 963,253
2060-2063 744,000 26,322 770,322
Total $ 14,947,000 $ 5,785,833 $ 20,732,833
NOTE 8: LEASES
Financed Purchases
The City has entered into certain 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, 2024
Governmental activities 1.40% $ 178,794
Business-type activities 1.64% 120,700
Total $ 299,494
Equipment and related accumulated depreciation under financed purchases are as follows:

Governmental Business-Type
Activities Activities
Equipment $ 437,652 $ 413,780
Less: accumulated depreciation ( 58,354) ( 55,171)
Net Value $ 379,298 $ 358,609
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-55-
NOTE 8: LEASES (CONTINUED)
Financed Purchases (Continued)
As of June 30, 2024, annual amortization is as follows:

Year Ended Governmental Business-Type
June 30 Activities Activities
2025 $ 90,727 $ 86,252
2026 90,727 35,938
Total Requirements 181,454 122,190
Less: interest ( 2,660) ( 1,490)
Present Value of Remaining Payments $ 178,794 $ 120,700 Subscription-Based Information Technology Arrangements
The City has one Subscription-Based Information Technology Arrangement (SBITA), which meets the criteria as defined by GASB Statement No. 96, Subscription-Based Information Technology Arrangements.

The SBITA for the Citizenlab software expires in April 2026. As of June 30, 2024, the City’s subscription liability was $0. The City made a payment in full in April 2023. The lease has an interest rate of 3.67%.

The value of the right-to-use asset and accumulated amortization as of June 30, 2024 were $21,011 and $9,497, respectively.

NOTE 9: 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”.

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.

Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-56-
NOTE 9: NET POSITION (CONTINUED)
Net Position Restricted by Enabling Legislation
The government-wide Statement of Net Position reports $7,947,620 of restricted net position, of which $3,623,482 is restricted by enabling legislation.

NOTE 10: 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.

The fund balances for all major and nonmajor governmental funds as of June 30, 2024, were distributed as follows:

Streets and Special Special
General Roads Revenue Grants Totals
Nonspendable:

Loans Receivable $ - $ - $ - $ 122,210 $ 122,210
Subtotal - - - 122,210 122,210
Restricted for:

Community Services 34,568 - - - 34,568
Capital Improvements 436,385 - - - 436,385
Streets and Sidewalks - 1,932,266 - - 1,932,266
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-57-
NOTE 10: FUND BALANCES (CONTINUED)
Streets and Special Special
General Roads Revenue Grants Totals
Restricted for (Continued):

Fire Protection - - 1,294,063 - 1,294,063
Debt Servicing 568,970 - 397,153 - 966,123
Revolving Loans - - - 431,544 431,544
Public Safety - - - 393,758 393,758
Subtotal 1,039,923 1,932,266 1,691,216 825,302 5,488,707 Assigned for:

Capital Improvements 71,149 - - 1,940,493 2,011,642
Planning and Development - - - - -
Budget Stabilization - - - - -
Grant Contingencies 1,327,470 - - - 1,327,470
Subtotal 1,398,619 - - 1,940,493 3,339,112
Unassigned 10,164,204 - - - 10,164,204
Total $ 12,602,746 $ 1,932,266 $ 1,691,216 $ 2,888,005 $ 19,114,233 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.

NOTE 11: 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.

Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-58-
NOTE 11: PENSION PLAN (CONTINUED)
A. General Information about the Pension Plan (Continued) Plan Description (Continued)
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, 2024, 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 – Police 2.7% @ 57 50-57 2.000% to 2.700%
Safety PEPRA – Fire 2.7% @ 57 50-57 2.000% to 2.700%
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-59-
NOTE 11: 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 11.840% 7.000% 0.000%
Miscellaneous PEPRA 7.680% 7.750% 0.000%
Safety 19.950% 9.000% 0.000%
Safety PEPRA – Police 13.540% 13.750% 0.000%
Safety PEPRA – Fire 13.540% 13.750% 0.000%
For the year ended June 30, 2024, the contributions recognized as part of pension expense were as follows:

Contributions-Employee
Contributions-Employer (Paid by Employer)
Miscellaneous $ 740,536 $ -
Safety 537,336 -
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, 2023, 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, 2022 rolled forward to June 30, 2023 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for the Plan as of June 30, 2023 and 2024 was as follows:

Proportion Proportion Change-
June 30, 2023 June 30, 2024 Increase (Decrease)
Miscellaneous .14846% .14771% ( .00075%)
Safety .10264% .06859% ( .03405%)
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-60-
NOTE 11: PENSION PLAN (CONTINUED)
B. Pension Liability, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension (Continued)
As of June 30, 2024, 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 $ 7,386,215
Safety 5,127,355
Total Net Pension Liability $ 12,513,570
For the year ended June 30, 2024, the City recognized pension expense of $2,050,017. At June 30, 2024, 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 $ 1,510,703 $ - Changes in assumptions 745,179 -
Difference between expected and actual experience 753,771 ( 90,759) Difference between projected and actual earnings on
pension plan investments 1,897,573 -
Difference between City contributions and proportionate share of contributions 1,085,906 ( 2,665,856)
Adjustment due to differences in proportions 180,699 ( 438,712) Total $ 6,173,831 ($ 3,195,327)
$1,510,703 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized as pension expense as follows:

Fiscal
Year Ended
June 30
2025 $ 475,225
2026 ( 108,480)
2027 1,047,155
2028 53,901
Thereafter -
Total $ 1,467,801
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-61-
NOTE 11: 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, 2022 actuarial valuation was determined using the following actuarial assumptions:

Valuation Date June 30, 2022
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
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.

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

In determining the long-term expected rate of return, CalPERS took into account 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
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-62-
NOTE 11: PENSION PLAN (CONTINUED)
B. Pension Liability, 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 2021-22 Asset Liability Management Study Discount Rate
The discount rate used to measure the total pension liability was 6.90 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

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 $ 10,758,163 $ 7,386,215 $ 4,610,811
Safety 7,450,792 5,127,355 3,227,778
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-63-
NOTE 11: PENSION PLAN (CONTINUED)
B. Pension Liability, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension (Continued)
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

NOTE 12: 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 $151 per month in 2023 and increased to $157 per month in 2024.

Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-64-
NOTE 12: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) A. General Information about the OPEB Plan (Continued)
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, 2024, the City’s cash contributions were $117,016 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.

Employees Covered by Benefit Terms
At June 30, 2024 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 $310,652, was measured as of June 30, 2023, 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% to 3.90% step 0.1%; PEMHCA min Demographic actuarial assumptions used in the June 30, 2023 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.

Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-65-
NOTE 12: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) B. Net OPEB Liability (Continued)
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.

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
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-66-
NOTE 12: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) C. Changes in the Net OPEB Liability
The table below shows the changes in the total OPEB liability, the Plan Fiduciary Net Position (i.e. Fair value of the Plan assets), and the net OPEB liability during the measurement period ending on June 30, 2023 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, 2023 $ 1,548,524 $ 1,302,719 $ 245,805 Changes during the period:

Service cost 97,173 - 97,173
Interest cost 91,411 - 91,411
Contributions - employer - 77,026 ( 77,026)
Net investment income - 74,198 ( 74,198)
Differences between expected and actual experience - - - Investment experience - ( 27,112) 27,112
Benefit payments ( 55,611) ( 55,611) -
Administrative expense - ( 375) 375
Net Changes 132,973 68,126 64,847
Balances at Fiscal Year Ending June 30, 2024 $ 1,681,497 $ 1,370,845 $ 310,652 Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the City, as well as what the City’s net OPEB 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 discount rate:
1% Decrease Discount Rate 1% Increase

4.65% 5.65% 6.65%
Net OPEB Liability $ 525,145 $ 310,652 $ 133,393
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability 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 $ 106,174 $ 310,652 $ 566,783
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-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, 2024, the City recognized an OPEB expense of $123,620. At June 30, 2024, 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 $ 117,076 $ - Change of assumptions 73,035 ( 15,229)
Differences between expected and actual experience 215,801 ( 238,656) Net difference between projected and actual earnings on investments 132,314 - Total $ 538,226 ($ 253,885)
$117,076 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 in the year ended June 30, 2025. 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
2025 $ 10,635
2026 8,824
2027 39,064
2028 ( 4,738)
2029 17,924
Thereafter 95,556
$ 167,265
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
May 6, 2025

CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2024
-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, 2024 through March 3, 2025, 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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May 6, 2025

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Yreka City Council Agenda
May 6, 2025

Required Supplementary Information
(Unaudited)
Yreka City Council Agenda
May 6, 2025

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May 6, 2025

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Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Required Supplementary Information
City Pension Plan
Schedule of Proportionate Share of the Net Pension Liability For the Year Ended June 30, 2024
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%
-69-
Yreka City Council Agenda
May 6, 2025

2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023

0.13147% 0.13557% 0.13950% 0.19465% 0.10955% 0.14606%
$ 4,954,547 $ 5,428,694 $ 5,884,112 $ 3,696,100 $ 6,910,295 $ 7,303,484 1,624,634 1,605,006 1,618,342 1,576,614 1,278,644 1,321,114 304.96% 338.24% 363.59% 234.43% 540.44% 552.83%

76.11% 74.43% 73.18% 83.48% 70.59% 69.73%

0.00007% 0.00021% 0.00044% -0.00150% 0.00279% 0.00165%
$ 2,578 $ 8,467 $ 18,706 $ (28,531) $ 36,532 $ 82,731
483,923 620,488 746,534 861,936 1,337,805 1,622,282

0.53% 1.36% 2.51% -3.31% 2.73% 5.10%

96.12% 93.89% 92.28% 107.72% 93.90% 89.68%

0.05808% 0.05929% 0.06109% 0.07267% 0.05698% 0.06779%
$ 3,407,746 $ 3,701,061 $ 4,069,838 $ 2,550,230 $ 4,738,160 $ 5,066,911 973,986 889,848 938,030 913,940 661,355 698,271
349.88% 415.92% 433.87% 279.04% 716.43% 725.64%

73.77% 73.31% 72.49% 83.01% 70.38% 69.40%

0.00007% 0.00012% 0.00019% -0.00011% 0.00900% 0.00081%
$ 4,172 $ 7,299 $ 12,794 $ (3,747) $ 2,314,802 $ 60,444 121,049 177,102 186,154 219,378 364,320 568,485

3.45% 4.12% 6.87% -1.71% 635.38% 10.63%

93.45% 92.59% 91.40% 102.62% 8.39% 84.08%
-69-
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Required Supplementary Information
City Pension Plan
Schedule of Contributions
For the Year Ended June 30, 2024
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% -70-
Yreka City Council Agenda
May 6, 2025

2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 $ 394,947 $ 470,384 $ 525,137 $ 558,963 $ 622,309 $ 746,340 (394,947) (470,384) (525,137) (558,963) (622,309) (746,340) $ - $ - $ - $ - $ - $ -
$ 1,605,006 $ 1,618,342 $ 1,576,614 $ 1,278,644 $ 1,321,114 $ 1,342,985

24.61% 29.07% 33.31% 43.72% 47.10% 55.57%
$ 43,599 $ 55,191 $ 68,563 $ 105,965 $ 118,227 $ 147,828 (43,599) (55,191) (68,563) (105,965) (118,227) (147,828) $ - $ - $ - $ - $ - $ -
$ 620,488 $ 746,534 $ 861,936 $ 1,337,805 $ 1,622,282 $ 1,930,650

7.03% 7.39% 7.95% 7.92% 7.29% 7.66%
$ 316,062 $ 375,035 $ 394,723 $ 419,336 $ 464,812 $ 583,932 (316,062) (375,035) (394,723) (419,336) (464,812) (583,932) $ - $ - $ - $ - $ - $ -
$ 889,848 $ 938,030 $ 913,940 $ 661,355 $ 698,271 $ 694,421

35.52% 39.98% 43.19% 63.41% 66.57% 84.09%
$ 22,867 $ 25,888 $ 31,770 $ 50,317 $ 72,524 $ 105,863
(22,867) (25,888) (31,770) (50,317) (72,524) (105,863)
$ - $ - $ - $ - $ - $ -
$ 177,102 $ 186,154 $ 219,378 $ 364,320 $ 568,485 $ 650,642

12.91% 13.91% 14.48% 13.81% 12.76% 16.27%
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Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Required Supplementary Information
City Pension Plan
Notes to City Pension Plan
For the Year Ended June 30, 2024
-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 and Direct Rate Smoothing Remaining Amortization Period Differs by employer rate plan but no more than 30 years Asset valuation method Fair value
Discount Rate 6.80%
Inflation 2.30%
Salary increases Varies based on entry age and service
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May 6, 2025

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Yreka City Council Agenda
May 6, 2025

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, 2024
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 seven years are shown. -72-
Yreka City Council Agenda
May 6, 2025

2020/2021 2021/2022 2022/2023
$ 52,289 $ 53,858 $ 97,173
69,392 73,555 91,411
- 268,955 -
- 90,708 -
(67,217) (50,174) (55,611)
54,464 436,902 132,973
1,057,158 1,111,622 1,548,524
$ 1,111,622 $ 1,548,524 $ 1,681,497
$ 193,368 $ 96,438 $ 77,026
225,750 (187,520) 47,086
(67,217) (50,174) (55,611)
(421) (373) (375)
351,480 (141,629) 68,126
1,092,868 1,444,348 1,302,719
$ 1,444,348 $ 1,302,719 $ 1,370,845
$ (332,726) $ 245,805 $ 310,652
129.93% 84.13% 81.53%
$ 3,571,115 $ 3,725,290 $ 4,874,774
-9.32% 6.60% 6.37%
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Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Required Supplementary Information
City OPEB Plan
Schedule of Contributions
For the Year Ended June 30, 2024
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 seven years are shown. -73-
Yreka City Council Agenda
May 6, 2025

2021/2022 2022/2023 2023/2024
$ 56,535 $ 54,681 $ 124,725
(96,438) (77,026) (117,076)
$ (39,903) $ (22,345) $ 7,649
$ 3,725,290 $ 4,874,774 $ 5,113,134

2.59% 1.58% 2.29%
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Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Required Supplementary Information
City OPEB Plan
Notes to City OPEB Plan
For the Year Ended June 30, 2024
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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 20 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 Mortality improvement MW Scale 2022 generationally
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Required Supplementary Information
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2024
Actual Variance with
Amounts Final Budget
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)

REVENUES
Taxes and assessments $ 7,986,725 $ 8,076,425 $ 8,052,579 $ (23,846) Licenses and permits 260,700 260,700 378,323 117,623
Fines and forfeitures 250 250 (2,171) (2,421)
Use of money 160,800 160,800 666,310 505,510
Intergovernmental 1,099,617 1,297,224 1,440,760 143,536 Charges for services 65,150 65,150 131,441 66,291
Other revenues 6,000 11,000 176,370 165,370
Total Revenues 9,579,242 9,871,549 10,843,612 972,063

EXPENDITURES
Current:

General government 1,071,202 1,113,274 979,469 133,805
Public safety 5,408,064 5,395,314 5,721,768 (326,454)
Public ways and facilities 108,271 108,271 71,506 36,765 Culture and recreation 512,162 512,162 793,801 (281,639) Community development 1,225,013 1,327,463 634,731 692,732 Debt service:

Principal 37,000 37,000 37,000 -
Interest and other charges 89,670 89,670 89,364 306
Capital outlay 75,000 516,000 565,038 (49,038)
Total Expenditures 8,526,382 9,099,154 8,892,677 206,477 Excess of Revenues Over (Under) Expenditures 1,052,860 772,395 1,950,935 1,178,540

OTHER FINANCING SOURCES (USES)
Transfers out (1,608,626) (1,605,626) (1,496,584) 109,042 Total Other Financing Sources (Uses) (1,608,626) (1,605,626) (1,496,584) 109,042 Net Change in Fund Balances (555,766) (833,231) 454,351 1,287,582 Fund Balances - Beginning 12,148,395 12,148,395 12,148,395 - Fund Balances - Ending $ 11,592,629 $ 11,315,164 $ 12,602,746 $ 1,287,582 -75-
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Required Supplementary Information
Budgetary Comparison Schedule
Special Grants - Major Special Revenue Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Use of money $ 3,133,000 $ 3,133,000 $ 27,387 $ (3,105,613) Intergovernmental 600 600 1,298,754 1,298,154
Total Revenues 3,133,600 3,133,600 1,326,141 (1,807,459)

EXPENDITURES
Current:

General government 395,000 395,000 9,499 385,501
Commmunity development - - 787,363 (787,363)
Capital outlay 5,827,650 5,827,650 1,054,271 4,773,379
Total Expenditures 6,222,650 6,222,650 1,851,133 4,371,517 Excess of Revenues Over (Under) Expenditures (3,089,050) (3,089,050) (524,992) 2,564,058

OTHER FINANCING SOURCES (USES)
Transfers in 1,926,597 1,926,597 276,597 (1,650,000)
Total Other Financing Sources (Uses) 1,926,597 1,926,597 276,597 (1,650,000) Net Change in Fund Balances (1,162,453) (1,162,453) (248,395) 914,058 Fund Balances - Beginning 3,136,400 3,136,400 3,136,400 - Fund Balances - Ending $ 1,973,947 $ 1,973,947 $ 2,888,005 $ 914,058 -76-
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Required Supplementary Information
Budgetary Comparison Schedule
Streets and Roads - Major Special Revenue Fund
For the Year Ended June 30, 2024
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Fines and forfeitures $ 15,000 $ 15,000 $ 29,293 $ 14,293 Use of money 6,500 6,500 79,142 72,642
Intergovernmental 627,900 627,900 789,978 162,078
Other revenues 11,000 11,000 31,235 20,235
Total Revenues 660,400 660,400 929,648 269,248

EXPENDITURES
Current:

Public ways and facilities 2,420,014 2,420,014 1,197,164 1,222,850 Capital outlay 90,000 90,000 9,967 80,033
Total Expenditures 2,510,014 2,510,014 1,207,131 1,302,883 Excess of Revenues Over (Under) Expenditures (1,849,614) (1,849,614) (277,483) 1,572,131

OTHER FINANCING SOURCES (USES)
Transfers in 782,029 782,029 782,029 -
Total Other Financing Sources (Uses) 782,029 782,029 782,029 - Net Change in Fund Balances (1,067,585) (1,067,585) 504,546 1,572,131 Fund Balances - Beginning 1,427,720 1,427,720 1,427,720 - Fund Balances - Ending $ 360,135 $ 360,135 $ 1,932,266 $ 1,572,131 -77-
Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Required Supplementary Information
Note to Budgetary Comparison Schedules
For the Year Ended June 30, 2024
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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.

Yreka City Council Agenda
May 6, 2025

CITY OF YREKA,

CALIFORNIA

SINGLE AUDIT ACT

REPORTS AND SCHEDULES

FOR THE YEAR ENDED
JUNE 30, 2024
Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Single Audit Act
For the Year Ended June 30, 2024
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, 2024 ........................................ 6 Notes to Schedule of Expenditures of Federal Awards .............................................................................7-8 Schedule of Findings and Questioned Costs............................................................................................9-13 Schedule of Prior Year Findings and Questioned Costs............................................................................. 14 Management’s Corrective Action Plan ..................................................................................................15-16 Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

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, 2024, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated March 3, 2025.

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 2024-002 and 2024-003 that we consider to be significant deficiencies.

Yreka City Council Agenda
May 6, 2025

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To the Honorable Mayor and Members of the City Council
City of Yreka
Yreka, California
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

City’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Smith & Newell CPAs
Yuba City, California
March 3, 2025
Yreka City Council Agenda
May 6, 2025

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 COMPLIANCE FOR EACH MAJOR PROGRAM

AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY

THE UNIFORM GUIDANCE
To the Honorable Mayor and Members of the City Council
City of Yreka
Yreka, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Yreka, California's (City) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended June 30, 2024. The City's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2024.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

Yreka City Council Agenda
May 6, 2025

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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 Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures, including examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance.

Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Other Matters
The results of our auditing procedures disclosed instances of noncompliance which are required to be reported in accordance with the Uniform Guidance and which are described in the accompanying schedule of findings and questioned costs as item 2024-001. Our opinion on each major federal program is not modified with respect to these matters.

Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the noncompliance findings identified in our compliance audit described in the accompanying schedule of findings and questioned costs. The City’s response was not subjected to the other auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

Yreka City Council Agenda
May 6, 2025

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To the Honorable Mayor and Members of the City Council
City of Yreka
Yreka, California
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Yreka, California, (City) as of and for the year ended June 30, 2024 and the related notes to the financial statements, which collectively comprise the City's basic financial statements. We issued our report thereon dated March 3, 2025, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Smith & Newell CPAs
Yuba City, California
March 3, 2025
Yreka City Council Agenda
May 6, 2025

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Yreka City Council Agenda
May 6, 2025

CITY OF YREKA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2024
Pass-Through
Assistance Entity Passed Total
Federal Grantor/Pass-Through Listing Identifying Through to Federal Grantor/Program Title Number Number Subrecipients Expenditures U.S. Department of Commerce
Siskiyou Economic Development Council:

Economic Adjustment Assistance 11.307 11-Unknown $ - $ 146,206 Subtotal 11.307 - Economic Development Cluster 146,206
Total U.S. Department of Commerce - 146,206
U.S. Department of Housing and Urban Development
State Department of Housing and Community Development:

Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 20-CDBG-12037 - 22,861 Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 20-CDBG-12091 - 550,000 Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 21-CDBG-PL-30004 - 227,376 Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 - - 310,773 Subtotal 14.228 - 1,111,010
Total U.S. Department of Housing and Urban Development - 1,111,010 U.S. Department of the Treasury
State Department of Finance:

Coronavirus State and Local Fiscal Recovery Funds 21.027 21-Unknown - 449,617 Total U.S. Department of the Treasury - 449,617
Environmental Protection Agency
State Water Resource Control Board:

Brownfields Multipurpose, Assessment, Revolving Loan Fund, and Cleanup Cooperative Agreements 66.818 BF99T61601 - 140,480 Total Environmental Protection Agency - 140,480
Total $ - $ 1,847,313
See the accompanying Notes to Schedule of Expenditures of Federal Awards -6-
Yreka City Council Agenda
May 6, 2025