Agenda — Yreka City Council, April 7, 2026 (part 1 of 2)

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

YREKA CITY COUNCIL MEETING AGENDA
April 7, 2026
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
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• 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 Code Section §54956.9(d)(4)) - Number of cases: 1
b. Conference with legal counsel - potential litigation (exposure to litigation) (Govt Code Section §54956.9(d)(2))
- Number of cases: 1

4. 6:30PM CALL TO ORDER REGULAR SESSION, PLEDGE OF ALLEGIANCE, AND REPORT OUT FROM CLOSED SESSION:

5. ROLL CALL:

6. APPROVAL OF THE AGENDA:

7. PRESENTATIONS:
 Collier Interpretive and Information Center – Rennie Cleland

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.

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• Please speak into the microphone from the podium. The podium electronically adjusts up and down to accommodate speaker.
• Please address the Council as a whole.
• Please state your name for the record prior to providing your comments. • 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 8, 2026, through March 21, 2026. b. Treasures Report for September 2025.
c. Treasures Report for October 2025.
d. Approval of the Minutes of the Regular Meeting held March 17, 2026. e. Approval of the Minutes of the Special Meeting held March 26, 2026. f. Acceptance of the City of Yreka’s Audited Financial Statements for Fiscal Year 2024-2025. g. Adoption of Resolution 2026-12 of the City Council of the City of Yreka Approving Increasing Capitalization Thresholds.
h. Adoption of Resolution 2026-13 of the City Council of the City of Yreka Approving Destruction of Certain City Records Identified by the Chief of Police. i. Adoption of Resolution 2026-14 of the City Council of the City of Yreka Approving and Adopting an Updated Comprehensive Pay Schedule for All Full-Time Employees, Part-Time Employees, and Elected Officials in Accordance with CalPERS Guidelines.

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

10. PUBLIC HEARINGS:

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.

Planning Manager
a. Agenda Title: Introduction and First Reading of an Ordinance to Amend Title 16 of the Yreka Municipal Code in Compliance with State Accessory Dwelling Unit (ADU) Law.

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Recommended City Council Action:
(1) Open public hearing
(2) Close public hearing
(3) Motion to Introduce and waive full reading of an ordinance to amend Title 16 of the Yreka Municipal Code updating the City’s ADU Ordinance in Compliance with State Accessory Dwelling Unit (ADU) Law. (4) Read the following ordinance by Title only:
“An Ordinance of the City Council of the City of Yreka, California, Amending Section 16.46.170(E) “Accessory Dwelling Units” and Finding the Ordinance Exempt from the California Environmental Quality Act (CEQA) Pursuant to CEQA Guidelines Section 15378”

11. CITY BUSINESS: (NONE)
f. CITY MANAGER/STAFF REPORTS:

City Manager and Staff may make brief announcements or reports at this time. g. 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.
h. ADJOURNMENT:

In compliance with the requirements of the Brown Act, notice of this meeting has been posted in a publicly accessible place, 72 hours in advance of the meeting.

Public Hearings: If you wish to challenge in court any of the matters on an agenda for which a public hearing is to be conducted, you may be limited to raising only those issues which you (or someone else) raised orally at the public hearing or in written correspondence received by the City at or before the hearing. Any person seeking to challenge a City Council decision made as a result of a proceeding in which by law a hearing is required to be given, evidence is required to be taken, and the discretion in the determination of facts is vested in the City Council, shall be required to commence that action 90 days following the date on which the decision becomes final as provided in Code of Civil Procedure Section 1094.6. Please refer to Code of Civil Procedure 1094.6 to determine how to calculate when a decision becomes “final.” "CHALLENGING DECISIONS OF CITY ENTITIES The time limit within which to commence any lawsuit or legal challenge to any quasi-adjudicative decision made by the City of Yreka is governed by Section 1094.6 of the Code of Civil Procedure, unless a shorter limitation period is specified by any other provision, including without limitation Government Code section 65009 applicable to many land use and zoning decisions, Government Code section 66499.37 applicable to the Subdivision Map Act, and Public Resources Code section 21167 applicable to the California Environmental Quality Act (CEQA). Under Section 1094.6, any lawsuit or legal challenge to any quasi-adjudicative decision made by the City must be filed no later than the 90th day following the date on which such decision becomes final. Any lawsuit or legal challenge, which is not filed within that 90-day period, will be barred. Government Code section 65009 and 66499.37, and Public Resources Code section 21167, impose shorter limitations periods and requirements, including timely service in addition to filing. If a person wishes to challenge the above actions in court, they may be limited to raising only those issues they or someone else raised at the meeting described in this notice, or in written correspondence delivered to the City of Yreka, at or prior to the meeting. In addition, judicial challenge may be limited or barred where the interested party has not sought and exhausted all available administrative remedies."
The City of Yreka does not discriminate on the basis of race, color, national origin, religion, age, gender, sexual orientation, disability, or any other legally protected classes in employment or provision of services. In compliance with the Americans with Disabilities Act, those requiring accommodations for this meeting should notify the City Clerk 48 hours prior to the meeting at (530) 841-2386 or by notifying the Clerk at [email protected].

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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 5:30 PM on April 7, 2026 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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Background
Statistics
Tourism
Why Does It Matter
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Collier Rest Area
A Vital First Impression for Siskiyou County
• Named for State Senator Randolph "Randy" Collier
• Leader in California transportation & infrastructure
• Located on 1-5 near the Oregon border
• A key gateway into Siskiyou County • More than a rest stop - a regional welcome point ,, -,
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Connecting Travelers to Local
Businesses & Communities
Where Travelers Decide What's Next
• Direct conneqtion to local businesses
• Promotes lodging, dining, recreation & events • Represents towns across the Gounty • Reaches visitors before their plans are made
Today:
• Some business partners engaged
• More opportunities to be discovered
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Advertising Opportunities
What we're seeing:
• Many local businesses recognize the value and
participate.
• However, many more still haven't taken advantage of
this prime visibility.
• This means missed opportunities for both travelers and our communities.
• With thousands of people passing through each week, the potential economic impact is far greater than most realize.

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Big Impact from a Small Footprint
The Collier Visitor Center plays a quiet but significant role in supporting:

1. Tourism: By driving visitors into our towns, parks, trails, and attractions

2. Local economies~ Through referrals that lead to overnight stays, meals, and retail spending

3. Public safety: By sharing wildfire, weather, and travel information year-round

4. Community awareness: By educating visitors on history, natural resources, recreation, agriculture, and more

5. County identity: By offering a unified "welcome" that reflects our values and landscapes
When Boards ask, "Why does this matter to my district?" the answ~r is simple:

Because this center represents your community even if a traveler never drives directly through it.
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A Shared Region Opportunity
• Serves travelers headed across Siskiyou County and beyond • Often the first point of contact for Lake Siskiyou, Klamath Basin, Scott Valley, Shasta Valley & more
• Reaches visitors before they decide where to go or spend time • Nature Walk Interpretive Trail was added in 2025
• Expands visibility for local programs, destinations & services • Reflects the full diversity of Siskiyou County
• Stronger impact through collaboration
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Rennie Cleland, Board President
530-260-114 7
rennie. clela ndconsulti ng@gma ii. com
https://collierctr.org/
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Fund Type Fund Fund Description Previous Balance Debits Credits Fund General-Unrestricted 01 General Operating $ 6,912,643.31 $ 1,040,360.54 $ 1,063,666.81 $ 6,889,337.04 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 62,057.71 - - 62,057.71 General-Designated 01 Parkland Trust 300.00 - - 300.00
General-Designated 01 Police Asset Forfeit 24,698.09 - - 24,698.09 General-Designated 01 Parking Fees - - - 0.00
General-Designated 01 Campbell Tract Redemption - - - 0.00 General-Designated 02 Gifts Donations 18,372.60 - - 18,372.60 General-Designated 02 K-9 Unit - - - 0.00
General-Designated 02 YPD Donated - Hitson 8,178.51 314.77 - 8,493.28 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 452,910.29 4,550.80 2,314.68 455,146.41 General-Restricted 05 Property Abatement Recovery 23,683.10 962.50 14,240.79 10,404.81 General-Designated 08 Grant Projects Reserve 1,325,744.57 - 1,325,744.57 - General-Designated 08 PERS Pension Liability Reserve - - - 0.00 General-Designated 09 Reserves for Cap. Outlay 604,864.28 4,444.11 - 609,308.39 General-Designated 10 Capital Outlay 44,353.01 - - 44,353.01 General-Designated 11 Capital Building Project - YPD 902,860.56 144,721.46 - 758,139.10 General - All General-Designated 12 Debt Servicing - GF (YPD Bldg) 504,357.15 - 43,522.50 460,834.65 General-Designated 12 Debt Servicing Reserves - GF (YPD Bldg) 200,000.00 - - 200,000.00 General-Designated 90 Payroll Clearing (1,462,799.09) 1,245,987.64 1,182,274.32 (1,399,085.77) 9,476,124.35 $ Spec. Rev. -Streets 20 Road and Street Funds including HUTA 815,909.05 50,000.28 84,120.85 781,788.48 Spec. Rev. -Streets 21 Local Transportation 1,048,394.57 10,533.64 1,058,928.21 - Streets Spec. Rev. -Streets 24 Fines - Traffic Safety 216,795.83 4,343.60 2,895.73 218,243.70 2,058,960.39 $ Special Revenue 30 Fire Assessment Spec. Rev 1,508,553.76 41,488.92 7,577.54 1,542,465.14 Special Revenue 31 Landfill Access Fee - Debt Service 14,339.57 19,232.81 4,474.54 29,097.84 Special Revenues Special Revenue 32 Developer Impact Fees 351,977.12 3,536.40 - 355,513.52 $ 1,927,076.50 Solid Waste 50 Solid Waste Operating 393,205.06 - 6,890.67 386,314.39 Solid Waste Solid Waste 51 Solid Waste Capital Projects (419,932.56) - (419,932.56) - $ (33,618.17) Special Grants 60 Spec Grants Capital Outlay 2,241,108.38 144,036.10 - 2,097,072.28 Special Grants Special Grants 65 Community Development Grants 404,055.43 4,639.57 9,688.97 399,006.03 SpecialOperating 67 SUMIT Operating 409,910.75 - - 409,910.75 $ 2,905,989.06 Water Enterprise 70 Water Operating 196,852.55 351,936.15 392,166.56 156,622.14 Water Enterprise 71 Water Capital Projects 5,956,855.96 - 64,030.35 5,892,825.61 Water Enterprise 72 Water Debt Servicing 764,009.74 213,170.16 - 550,839.58 Water Enterprise 72 USDA COPS 2010 300,000.00 - - 300,000.00 Water Enterprise Water Enterprise 74 Water Reserves 1,574,815.72 87,710.04 1,662,525.76 - $ 8,562,813.09 Sewer Enterprise 80 Sewer Operating 200,897.56 269,628.04 220,906.96 249,618.64 Sewer Enterprise 81 Sewer Capital Outlay 5,035,095.77 - 5,035,095.77 - Sewer Enterprise 82 Sewer Debt Servicing (187,863.05) - (187,863.05) - Sewer Enterprise 82 USDA COPS 2003 610,000.00 - - 610,000.00 Enterprise-Sewer Sewer Enterprise 84 Sewer Reserves 2,402,240.62 70,764.00 2,473,004.62 - $ 8,179,855.98 Agency
Agency 92 Agency SUMIT - Cash 3,717.17 - - 3,717.17 $ 3,717.17 COLUMN TOTALS $ 33,471,183.55 $ 3,210,433.81 $ 3,600,698.99 $ 33,080,918.37 $ 33,080,918.37 -
BANK RECAPITULATION PER BANK Market Value Unrealized Gain PER LEDGER L.A.I.F. 0.861% 28,270,852.17 27,906,876.65 (363,975.52) Pershing Bank - CD & Treas Investments 3,430,000.00 3,458,380.80 28,380.80 Pershing Bank - Cash 17,986.84
Petty Cash Drawers 1,200.00
MB SUMIT Operating x2233 412,460.84
MB SUMIT Asset Forfeiture X4281 3,707.71
Mechanics Bank - ZBA x6830 -
Mechanics Bank - MM x6505 501,728.15
Mechanics Bank - 01015102 1,221,688.09
TOTAL PER BANK 33,859,623.80

ADJUSTMENTS
Less Outstanding Checks MB (706,186.60)
Less Outstanding Checks SVB SUMIT (2,550.09)
Interest (11.13)
XFER 16,833.51
Benefits - will clear in November (67,258.36)
Check voided but cashed 100.00
Remote Deposit 18,040.71
Mechanics Money Market 6505 Oct (1,728.15)
Accrual Period (18,029.25)
MBSC Interest - Oct (17,986.84)
TOTAL PER LEDGER 33,080,918.37 33,080,918.37
(0.00)
Colleen Baker, City Mayor
Emily Aldrich, Finance Director

CITY OF YREKA

REPORT ON CASH TO THE CITY COUNCIL
Oct-2025
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2025-2026 Operating Budget of Revenue and Expenditures
with Year to Date Actual Results October 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 11,658,945.09 11,658,945.09 2,051,869.41 11,656,242.78 11,656,242.78 3,854,312.23 2,702.31 (1,802,442.82) 6,979,715.19 General Operating Fund 11,658,945.09 11,658,945.09 2,051,869.41 11,656,242.78 11,656,242.78 3,854,312.23 2,702.31 (1,802,442.82) 6,979,715.19 Gifts Donations 02 - - 314.77 500.00 500.00 100.00 (500.00) 214.77 31,563.99 Trusts -Crandell-Stewart 04 - - 4,550.80 2,400.00 2,400.00 2,314.68 (2,400.00) 2,236.12 455,146.41 Property Abatement 05 125,000.00 125,000.00 23,844.11 125,000.00 125,000.00 14,240.79 - 9,603.32 10,404.81 General Fund Reserves 08 - - - - - - - - 1,325,744.57
Reserves for Cap. Outlay 09 600,000.00 600,000.00 16,465.79 - - - 600,000.00 16,465.79 609,308.39 Capital Outlay 10 95,000.00 95,000.00 29,408.28 107,000.00 107,000.00 4,999.00 (12,000.00) 24,409.28 44,353.01 Construction Fund 11 1,020,000.00 1,020,000.00 - 1,570,000.00 1,570,000.00 322,300.17 (550,000.00) (322,300.17) 758,139.10 General Fund Debt Servicing 12 126,375.00 126,375.00 - 126,375.00 126,375.00 43,522.50 - (43,522.50) 660,834.65 Payroll Clearing 90 - - - - 117,997.18 - (117,997.18) - (1,399,085.77) General Fund - Restricted or Designated 1,966,375.00 1,966,375.00 74,583.75 1,931,275.00 1,931,275.00 505,474.32 35,100.00 (430,890.57) 2,496,409.16 Total General Fund 13,625,320.09 13,625,320.09 2,126,453.16 13,587,517.78 13,587,517.78 4,359,786.55 37,802.31 (2,233,333.39) 9,476,124.35 Gas Tax & Traffic Cong. 20 1,039,411.17 1,039,411.17 111,628.79 1,039,411.17 1,039,411.17 252,796.08 (141,167.29) - 781,788.48 Local Transportation 21 240,000.00 240,000.00 10,533.64 240,000.00 240,000.00 - - 10,533.64 1,058,928.21 Fines - Traffic Safety 24 85,758.93 85,758.93 6,775.23 85,758.93 85,758.93 22,529.61 - (15,754.38) 218,243.70 Road, Street & Transit - Restricted 1,365,170.10 1,365,170.10 128,937.66 1,365,170.10 1,365,170.10 275,325.69 (146,388.03) - 2,058,960.39 Total Road, Streets and Transit 1,365,170.10 1,365,170.10 128,937.66 1,365,170.10 1,365,170.10 275,325.69 (146,388.03) - 2,058,960.39 Fire Assessment Spec. Rev 30 386,000.00 386,000.00 130,196.03 636,420.25 636,420.25 30,296.44 (250,420.25) 99,899.59 1,542,465.14 Landfill Access Fee - Debt Service 31 243,000.00 243,000.00 81,405.28 243,000.00 243,000.00 188,209.72 (106,804.44) - 29,097.84 Developer Impact Fees 32 103,000.00 103,000.00 3,536.40 36,000.00 36,000.00 - 67,000.00 3,536.40 355,513.52 Special Revenue - Restricted 732,000.00 732,000.00 215,137.71 915,420.25 915,420.25 218,506.16 (183,420.25) (3,368.45) 1,927,076.50 Total Special Revenue 732,000.00 732,000.00 215,137.71 915,420.25 915,420.25 218,506.16 (183,420.25) (3,368.45) 1,927,076.50 Spec Grants Capital Outlay 60 260,000.00 260,000.00 - 772,000.00 772,000.00 263,453.29 (512,000.00) (263,453.29) 2,097,072.28 Community Development Grants 65 300,800.00 300,800.00 4,132.83 300,000.00 300,000.00 11,134.76 800.00 (7,001.93) 399,006.03 SUMIT Operating Fund 67 - - - - - - - - 409,910.75
Special Grants - Capital Projects 560,800.00 560,800.00 4,132.83 1,072,000.00 1,072,000.00 274,588.05 (511,200.00) (270,455.22) 2,905,989.06 Special Grants - Operating &
Capital Projects 560,800.00 560,800.00 4,132.83 1,072,000.00 1,072,000.00 274,588.05 (511,200.00) (270,455.22) 2,905,989.06 Solid Waste Operating 50 42,542.60 42,542.60 33,912.84 - 92,542.60 12,317.47 42,542.60 21,595.37 386,314.39 Solid Waste Capital Projects 51 - - - - - - - - (419,932.56) Solid Waste 42,542.60 42,542.60 33,912.84 - 92,542.60 12,317.47 42,542.60 21,595.37 (33,618.17) Solid Waste 42,542.60 42,542.60 33,912.84 - 92,542.60 12,317.47 42,542.60 21,595.37 (33,618.17) Water Operating 70 3,746,741.04 3,746,741.04 1,450,169.40 3,746,741.04 3,746,741.04 1,323,387.84 126,781.56 - 156,622.14 Water Capital Projects 71 2,534,500.00 2,534,500.00 (373,650.00) 2,534,500.00 2,534,500.00 78,493.63 (452,143.63) - 5,892,825.61 Water Debt Servicing 72 314,238.30 314,238.30 - 298,238.30 298,238.30 58,168.25 16,000.00 (58,168.25) 850,839.58 Water Reserves 74 (593,154.34) (593,154.34) 87,710.04 - - - (593,154.34) 87,710.04 1,662,525.76 Water Enterprise 6,002,325.00 6,002,325.00 1,164,229.44 6,579,479.34 6,579,479.34 1,460,049.72 (577,154.34) (295,820.28) 8,562,813.09 Sewer Operating 80 3,323,508.70 3,323,508.70 1,130,621.93 3,323,508.70 3,323,508.70 889,157.19 241,464.74 - 249,618.64 Sewer Capital Outlay 81 1,900,000.00 1,900,000.00 - 1,900,000.00 1,900,000.00 - - - 5,035,095.77 Sewer Debt Servicing 82 422,457.50 422,457.50 - 402,457.50 402,457.50 204,228.75 20,000.00 (204,228.75) 422,136.95 Sewer Reserves 84 (397,408.20) (397,408.20) 70,764.00 - - - (397,408.20) 70,764.00 2,473,004.62 Sewer Enterprise Fund 5,248,558.00 5,248,558.00 1,201,385.93 5,625,966.20 5,625,966.20 1,093,385.94 (377,408.20) 107,999.99 8,179,855.98 Total Enterprise Funds 11,250,883.00 11,250,883.00 2,365,615.37 12,205,445.54 12,205,445.54 2,553,435.66 (954,562.54) (187,820.29) 16,742,669.07 SUMIT Agency Trust - Cash 92 - - - - - - - - 3,717.17
Agency Funds - - - - - - - - 3,717.17 \
Total Agency Funds - - - - - - - - 3,717.17
All Funds Combined 27,576,715.79 27,576,715.79 4,874,189.57 29,145,553.67 29,238,096.27 7,693,959.58 (1,568,837.88) (2,819,770.01) 33,080,918.37 Excess of Rev over Exp.-Surplus/
R E V E N U E E X P E N S E (Deficit)
Approval:______________________________________________________Colleen Baker, City Mayor 3/18/2026 11:44 AM Yreka City Council Agenda
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City of Yreka Financial Statement Groupings
Summary FY 25-26 YTD Fiscal Performance
as of October 31, 2025
ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt

1. GENERAL FUNDS
Revenue
801 REVENUE: PROP TAXES 1,592,950.00 1,592,950.00 6,579.09 -1,586,370.91 807 MVLF IN LIEU 875,000.00 875,000.00 0.00 -875,000.00 810 SALES TAX 6,950,000.00 6,950,000.00 1,054,286.04 -5,895,713.96 813 REVENUE: TOT TAXES 1,243,000.00 1,243,000.00 366,820.96 -876,179.04 814 REVENUE: FRANCHISE FEES 300,000.00 300,000.00 34,835.14 -265,164.86 815 REVENUE - LICENSES AND PERMITS 349,600.00 349,600.00 66,252.64 -283,347.36 825 REVENUE - FINES & FORFEITURES 250.00 250.00 5,737.17 5,487.17 830 REVENUE - USE OF MONEY & PROPERTY 385,800.00 385,800.00 122,988.54 -262,811.46 850 REVENUE - INTERGOVERNMENTAL 934,882.09 934,882.09 207,379.82 -727,502.27 870 REVENUE - USER FEES AND CHARGES 116,900.00 116,900.00 64,477.48 -52,422.52 880 ICA ALLOCATION 361,608.00 361,608.00 149,120.00 -212,488.00 882 REVENUE - OTHER 5,000.00 5,000.00 47,976.28 42,976.28 883 GAIN (LOSS) ON SALE OF ASSETS 0.00 0.00 0.00 0.00
898 INTERFUND TRANSFERS 510,330.00 510,330.00 0.00 -510,330.00

1. GENERAL FUNDS Revenue Totals 13,625,320.09 13,625,320.09 2,126,453.16 -11,498,866.93 Expense
100 MAYOR, COUNCIL, CITY MANAGER, CLERK 757,889.98 757,889.98 84,928.59 672,961.39 110 EXP. GENERAL GOVERNMENT 1,289,208.14 1,289,208.14 1,074,771.14 214,437.00 130 PUBLIC SAFETY CODE ENFORCEMENT 341,274.33 341,274.33 66,515.08 274,759.25 Wednesday, March 18, 2026 Page 1 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
200 PUBLIC SAFETY - POLICE 5,211,133.04 5,211,133.04 1,559,135.16 3,651,997.88 210 PUBLIC SAFETY - FIRE 1,472,000.26 1,472,000.26 276,027.17 1,195,973.09 215 PUBLIC SAFETY - HAZARD MITIGATION 171,482.09 171,482.09 53,473.33 118,008.76 220 PLANNING AND DEVELOPMENT 1,136,202.09 1,136,202.09 394,636.28 741,565.81 300 PUBLIC WORKS - ENGINEERING AND ADMIN 122,480.38 122,480.38 30,847.40 91,632.98 350 PUBLIC WORKS - MECHANICAL MAINT (ELIM) 0.00 0.00 203,404.13 -203,404.13 370 PUBLIC WORKS - SERVICE CENTER (ELIM) 0.00 0.00 15,184.96 -15,184.96 400 CULTURAL & REC - PARKS AND REC 601,802.37 601,802.37 157,367.45 444,434.92 600 COMMUNITY DEVELOPMENT 96,500.00 96,500.00 77,673.19 18,826.81 645 CAPITAL OUTLAY 1,645,000.00 1,645,000.00 322,300.17 1,322,699.83 740 PRINCIPAL ON LT DEBT 38,000.00 38,000.00 0.00 38,000.00 745 INTEREST ON LT DEBT 88,375.00 88,375.00 43,522.50 44,852.50 760 INTERFUND TRANSFERS 616,170.10 616,170.10 0.00 616,170.10

1. GENERAL FUNDS Expense Totals 13,587,517.78 13,587,517.78 4,359,786.55 9,227,731.23

1. GENERAL FUNDS Net Position Change 37,802.31 37,802.31 -2,233,333.39 -2,271,135.70 Wednesday, March 18, 2026 Page 2 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 1. GENERAL FUNDS (1064 detail records)

2. STREETS FUNDS
Revenue
825 REVENUE - FINES & FORFEITURES 15,000.00 15,000.00 4,523.62 -10,476.38 830 REVENUE - USE OF MONEY & PROPERTY 17,000.00 17,000.00 21,218.08 4,218.08 850 REVENUE - INTERGOVERNMENTAL 726,000.00 726,000.00 100,570.96 -625,429.04 870 REVENUE - USER FEES AND CHARGES 0.00 0.00 2,625.00 2,625.00 887 REVENUE: INKIND 11,000.00 11,000.00 0.00 -11,000.00 898 INTERFUND TRANSFERS 596,170.10 596,170.10 0.00 -596,170.10

2. STREETS FUNDS Revenue Totals 1,365,170.10 1,365,170.10 128,937.66 -1,236,232.44 Expense
300 PUBLIC WORKS - ENGINEERING AND ADMIN 90,686.10 90,686.10 18,511.16 72,174.94 310 PUBLIC WORKS - STREET MAINTENANCE 525,564.73 525,564.73 152,226.07 373,338.66 311 PUBLIC WORKS - STREET SWEEPING 86,160.98 86,160.98 29,642.67 56,518.31 312 PUBLIC WORKS - STREET LIGHTING 67,151.23 67,151.23 16,912.83 50,238.40 313 PUBLIC WORKS - WEED CONTROL STREETS 14,404.79 14,404.79 331.53 14,073.26 314 PUBLIC WORKS - PUBLIC PARKING LOTS 1,989.66 1,989.66 1,934.50 55.16 315 PUBLIC WORKS - STREETSCAPE MAINTENANCE 95,673.47 95,673.47 8,900.23 86,773.24 320 PUBLIC WORKS - TRAFFIC SAFETY 85,758.93 85,758.93 22,529.61 63,229.32 340 TRANSPORTATION 240,000.00 240,000.00 0.00 240,000.00 390 PUBLIC WORKS - STORM DRAINS 130,780.21 130,780.21 23,337.09 107,443.12 645 CAPITAL OUTLAY 27,000.00 27,000.00 1,000.00 26,000.00

2. STREETS FUNDS Expense Totals 1,365,170.10 1,365,170.10 275,325.69 1,089,844.41

2. STREETS FUNDS Net Position Change 0.00 0.00 -146,388.03 -146,388.03 Wednesday, March 18, 2026 Page 3 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 2. STREETS FUNDS (308 detail records)

3. SPECIAL REVENUE FUNDS
Revenue
811 OTHER TAXES 346,000.00 346,000.00 115,212.23 -230,787.77 815 REVENUE - LICENSES AND PERMITS 103,000.00 103,000.00 0.00 -103,000.00 830 REVENUE - USE OF MONEY & PROPERTY 40,000.00 40,000.00 18,520.20 -21,479.80 870 REVENUE - USER FEES AND CHARGES 243,000.00 243,000.00 81,405.28 -161,594.72

3. SPECIAL REVENUE FUNDS Revenue Totals 732,000.00 732,000.00 215,137.71 -516,862.29 Expense
100 COLLECTION EXPENSE 68,000.00 68,000.00 13,209.72 54,790.28 210 PUBLIC SAFETY - FIRE 45,000.00 45,000.00 54.36 44,945.64 645 CAPITAL OUTLAY 0.00 0.00 0.00 0.00
740 PRINCIPAL ON LT DEBT 211,882.34 211,882.34 151,043.41 60,838.93 745 INTEREST ON LT DEBT 54,537.91 54,537.91 54,198.67 339.24 760 INTERFUND TRANSFERS 536,000.00 536,000.00 0.00 536,000.00

3. SPECIAL REVENUE FUNDS Expense Totals 915,420.25 915,420.25 218,506.16 696,914.09

3. SPECIAL REVENUE FUNDS Net Position Change -183,420.25 -183,420.25 -3,368.45 180,051.80 Wednesday, March 18, 2026 Page 4 of 9
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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 GRANTS
Revenue
830 REVENUE - USE OF MONEY & PROPERTY 800.00 800.00 4,132.83 3,332.83 850 REVENUE - INTERGOVERNMENTAL 560,000.00 560,000.00 0.00 -560,000.00 882 REVENUE - OTHER 0.00 0.00 0.00 0.00

4. CAPITAL & CDBG GRANTS Revenue Totals 560,800.00 560,800.00 4,132.83 -556,667.17 Expense
600 COMMUNITY DEVELOPMENT 335,000.00 335,000.00 20,479.76 314,520.24 645 CAPITAL OUTLAY 737,000.00 737,000.00 254,108.29 482,891.71

4. CAPITAL & CDBG GRANTS Expense Totals 1,072,000.00 1,072,000.00 274,588.05 797,411.95

4. CAPITAL & CDBG GRANTS Net Position Change -511,200.00 -511,200.00 -270,455.22 240,744.78 Wednesday, March 18, 2026 Page 5 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 4. CAPITAL & CDBG GRANTS (116 detail records)

5. WATER FUNDS
Revenue
830 REVENUE - USE OF MONEY & PROPERTY 250,000.00 250,000.00 87,710.04 -162,289.96 850 REVENUE - INTERGOVERNMENTAL 1,984,500.00 1,984,500.00 -388,550.00 -2,373,050.00 870 REVENUE - USER FEES AND CHARGES 3,751,825.00 3,751,825.00 1,449,421.40 -2,302,403.60 882 REVENUE - OTHER 0.00 0.00 748.00 748.00
883 GAIN (LOSS) ON SALE OF ASSETS 0.00 0.00 14,900.00 14,900.00 898 INTERFUND TRANSFERS 16,000.00 16,000.00 0.00 -16,000.00

5. WATER FUNDS Revenue Totals 6,002,325.00 6,002,325.00 1,164,229.44 -4,838,095.56 Expense
100 COLLECTION EXPENSE 381,993.44 381,993.44 117,110.70 264,882.74 300 ENGINEERING 276,667.76 276,667.76 46,321.05 230,346.71 500 WATER DISTRIBUTION EXPENSE 1,385,337.99 1,385,337.99 226,319.13 1,159,018.86 510 WATER TREATMENT AND CONSERVATION 1,616,741.85 1,616,741.85 717,891.99 898,849.86 510 COST OF POWER AND WATER 386,000.00 386,000.00 149,144.97 236,855.03 645 CAPITAL OUTLAY 2,109,500.00 2,109,500.00 78,493.63 2,031,006.37 740 PRINCIPAL ON LT DEBT 183,791.43 183,791.43 0.00 183,791.43 745 INTEREST ON LT DEBT 114,446.87 114,446.87 58,168.25 56,278.62 799 ICA EXPENSE 125,000.00 125,000.00 66,600.00 58,400.00

5. WATER FUNDS Expense Totals 6,579,479.34 6,579,479.34 1,460,049.72 5,119,429.62

5. WATER FUNDS Net Position Change -577,154.34 -577,154.34 -295,820.28 281,334.06 Wednesday, March 18, 2026 Page 6 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 5. WATER FUNDS (365 detail records)

6. SEWER FUNDS
Revenue
830 REVENUE - USE OF MONEY & PROPERTY 125,000.00 125,000.00 70,764.00 -54,236.00 850 REVENUE - INTERGOVERNMENTAL 1,625,000.00 1,625,000.00 0.00 -1,625,000.00 870 REVENUE - USER FEES AND CHARGES 3,478,558.00 3,478,558.00 1,128,317.68 -2,350,240.32 882 REVENUE - OTHER 0.00 0.00 2,304.25 2,304.25
883 GAIN (LOSS) ON SALE OF ASSETS 0.00 0.00 0.00 0.00
898 INTERFUND TRANSFERS 20,000.00 20,000.00 0.00 -20,000.00

6. SEWER FUNDS Revenue Totals 5,248,558.00 5,248,558.00 1,201,385.93 -4,047,172.07 Expense
100 COLLECTION EXPENSE 366,542.31 366,542.31 111,062.99 255,479.32 300 ENGINEERING 269,243.51 269,243.51 44,641.31 224,602.20 510 COST OF POWER AND WATER 330,000.00 330,000.00 71,499.12 258,500.88 550 WASTEWATER COLLECTION EXPENSE 851,692.40 729,692.40 131,051.19 598,641.21 560 WASTEWATER TREATMENT EXPENSE 1,297,422.48 1,419,422.48 448,382.58 971,039.90 645 CAPITAL OUTLAY 1,872,000.00 1,872,000.00 0.00 1,872,000.00 740 PRINCIPAL ON LT DEBT 196,000.00 196,000.00 101,000.00 95,000.00 745 INTEREST ON LT DEBT 206,457.50 206,457.50 103,228.75 103,228.75 799 ICA EXPENSE 236,608.00 236,608.00 82,520.00 154,088.00

6. SEWER FUNDS Expense Totals 5,625,966.20 5,625,966.20 1,093,385.94 4,532,580.26

6. SEWER FUNDS Net Position Change -377,408.20 -377,408.20 107,999.99 485,408.19 Wednesday, March 18, 2026 Page 7 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 6. SEWER FUNDS (245 detail records)

7. LANDFILL FUNDS
Revenue
850 REVENUE - INTERGOVERNMENTAL 42,542.60 42,542.60 7,201.15 -35,341.45

7. LANDFILL FUNDS Revenue Totals 42,542.60 42,542.60 7,201.15 -35,341.45 Expense
380 PUBLIC WORKS - WASTE DISPOSAL 92,542.60 92,542.60 12,317.47 80,225.13

7. LANDFILL FUNDS Expense Totals 92,542.60 92,542.60 12,317.47 80,225.13

7. LANDFILL FUNDS Net Position Change -50,000.00 -50,000.00 -5,116.32 44,883.68 Wednesday, March 18, 2026 Page 8 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 7. LANDFILL FUNDS (20 detail records) Grand Total 1,661,380.48 1,661,380.48 2,846,481.70 1,185,101.22 Wednesday, March 18, 2026 Page 9 of 9
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Fund Type Fund Fund Description Previous Balance Debits Credits Fund General-Unrestricted 01 General Operating $ 6,974,974.22 $ 858,227.05 $ 920,557.96 $ 6,912,643.31 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 62,057.71 - - 62,057.71 General-Designated 01 Parkland Trust 300.00 - - 300.00
General-Designated 01 Police Asset Forfeit 24,698.09 - - 24,698.09 General-Designated 01 Parking Fees - - - 0.00
General-Designated 01 Campbell Tract Redemption - - - 0.00 General-Designated 02 Gifts Donations 18,472.60 - 100.00 18,372.60 General-Designated 02 K-9 Unit - - - 0.00
General-Designated 02 YPD Donated - Hitson 8,178.51 - - 8,178.51 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 452,910.29 - - 452,910.29 General-Restricted 05 Property Abatement Recovery 23,683.10 - - 23,683.10 General-Designated 08 Grant Projects Reserve 1,325,744.57 - 1,325,744.57 - General-Designated 08 PERS Pension Liability Reserve - - - 0.00 General-Designated 09 Reserves for Cap. Outlay 602,236.04 2,628.24 - 604,864.28 General-Designated 10 Capital Outlay 14,944.73 29,408.28 - 44,353.01 General-Designated 11 Capital Building Project - YPD 1,006,660.35 103,799.79 - 902,860.56 General - All General-Designated 12 Debt Servicing - GF (YPD Bldg) 504,357.15 - - 504,357.15 General-Designated 12 Debt Servicing Reserves - GF (YPD Bldg) 200,000.00 - - 200,000.00 General-Designated 90 Payroll Clearing (1,465,234.32) 899,316.86 896,881.63 (1,462,799.09) 9,630,244.55 $ Spec. Rev. -Streets 20 Road and Street Funds including HUTA 839,406.71 40,296.62 63,794.28 815,909.05 Spec. Rev. -Streets 21 Local Transportation 1,048,394.57 - 1,048,394.57 - Streets Spec. Rev. -Streets 24 Fines - Traffic Safety 221,695.79 2,431.63 7,331.59 216,795.83 2,081,099.45 $ Special Revenue 30 Fire Assessment Spec. Rev 1,494,922.44 29,204.79 15,573.47 1,508,553.76 Special Revenue 31 Landfill Access Fee - Debt Service (3,371.09) 21,011.73 3,301.07 14,339.57 Special Revenues Special Revenue 32 Developer Impact Fees 351,977.12 - - 351,977.12 $ 1,874,870.45 Solid Waste 50 Solid Waste Operating 388,343.85 7,809.99 2,948.78 393,205.06 Solid Waste Solid Waste 51 Solid Waste Capital Projects (419,932.56) - (419,932.56) - $ (26,727.50) Special Grants 60 Spec Grants Capital Outlay 2,462,682.85 221,574.47 - 2,241,108.38 Special Grants Special Grants 65 Community Development Grants 391,081.34 13,114.19 140.10 404,055.43 SpecialOperating 67 SUMIT Operating 409,910.75 - - 409,910.75 $ 3,055,074.56 Water Enterprise 70 Water Operating 148,850.97 390,627.27 342,625.69 196,852.55 Water Enterprise 71 Water Capital Projects 5,935,822.14 28,480.00 7,446.18 5,956,855.96 Water Enterprise 72 Water Debt Servicing 771,197.40 - 7,187.66 764,009.74 Water Enterprise 72 USDA COPS 2010 300,000.00 - - 300,000.00 Enterprise - Water Water Enterprise 74 Water Reserves 1,574,815.72 - 1,574,815.72 - $ 8,792,533.97 Sewer Enterprise 80 Sewer Operating 135,777.03 293,697.20 228,576.67 200,897.56 Sewer Enterprise 81 Sewer Capital Outlay 5,035,095.77 - 5,035,095.77 - Sewer Enterprise 82 Sewer Debt Servicing (187,863.05) - (187,863.05) - Sewer Enterprise 82 USDA COPS 2003 610,000.00 - - 610,000.00 Enterprise - Sewer Sewer Enterprise 84 Sewer Reserves 2,402,240.62 - 2,402,240.62 - $ 8,060,370.90 Agency
Agency 92 Agency SUMIT - Cash 3,717.17 - - 3,717.17 $ 3,717.17 COLUMN TOTALS $ 33,676,769.04 $ 2,616,253.85 $ 2,821,839.34 $ 33,471,183.55 $ 33,471,183.55 -
BANK RECAPITULATION PER BANK Market Value Unrealized Gain PER LEDGER L.A.I.F. 0.861% 28,485,553.87 28,118,814.16 (366,739.71) Pershing Bank - CD & Treas Investments 3,430,000.00 3,462,361.00 32,361.00 Pershing Bank - Cash 30,889.46
Petty Cash Drawers 1,200.00
MB SUMIT Operating x2233 412,460.84
MB SUMIT Asset Forfeiture X4281 3,707.71
Mechanics Bank - ZBA x6830 -
Mechanics Bank - MM x6505 505,332.35
Mechanics Bank - 01015102 1,097,465.23
TOTAL PER BANK 33,966,609.46

ADJUSTMENTS
Less Outstanding Checks MB (467,529.88)
Less Outstanding Checks SVB SUMIT (2,550.09)
Interest May (12.63)
XFER June 12,374.07
AFLAC 767.78
Health JE (176.93)
VSP JE (74.53)
BRMS JE 28.28
JE Retiree K Cobb (0.72)
Cashed checks 108.53
Accrual Period (2,062.98)
Mechanics Money Market 6505 April (1,714.47)
Mechanics Money Market 6505 Sep (1,787.93)
Mechanics Money Market 6505 July (1,829.95)
MBSC Interest - July (9,210.89)
MBSC Interest - Aug (7,548.51)
MBSC Interest - Sep (14,130.06)
TOTAL PER LEDGER 33,471,183.55 33,471,183.55
(0.00)
Colleen Baker, City Mayor
Emily Aldrich, Finance Director

CITY OF YREKA

REPORT ON CASH TO THE CITY COUNCIL
Sep-2025
Yreka City Council Agenda
April 7, 2026

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2025-2026 Operating Budget of Revenue and Expenditures
with Year to Date Actual Results September 30, 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 11,658,945.09 11,658,945.09 1,111,802.95 11,656,242.78 11,656,242.78 2,806,798.66 2,702.31 (1,694,995.71) 7,003,021.46 General Operating Fund 11,658,945.09 11,658,945.09 1,111,802.95 11,656,242.78 11,656,242.78 2,806,798.66 2,702.31 (1,694,995.71) 7,003,021.46 Gifts Donations 02 - - - 500.00 500.00 100.00 (500.00) (100.00) 31,249.22 Trusts -Crandell-Stewart 04 - - - 2,400.00 2,400.00 - (2,400.00) - 452,910.29 Property Abatement 05 125,000.00 125,000.00 22,881.61 125,000.00 125,000.00 - - 22,881.61 23,683.10 General Fund Reserves 08 - - - - - - - - 1,325,744.57
Reserves for Cap. Outlay 09 600,000.00 600,000.00 12,021.68 - - - 600,000.00 12,021.68 604,864.28 Capital Outlay 10 95,000.00 95,000.00 29,408.28 107,000.00 107,000.00 4,999.00 (12,000.00) 24,409.28 44,353.01 Construction Fund 11 1,020,000.00 1,020,000.00 - 1,570,000.00 1,570,000.00 177,578.71 (550,000.00) (177,578.71) 902,860.56 General Fund Debt Servicing 12 126,375.00 126,375.00 - 126,375.00 126,375.00 - - - 704,357.15 Payroll Clearing 90 - - - - - 18,572.80 - (18,572.80) (1,462,799.09) General Fund - Restricted or Designated 1,966,375.00 1,966,375.00 64,311.57 1,931,275.00 1,931,275.00 201,250.51 35,100.00 (136,938.94) 2,627,223.09 Total General Fund 13,625,320.09 13,625,320.09 1,176,114.52 13,587,517.78 13,587,517.78 3,008,049.17 37,802.31 (1,831,934.65) 9,630,244.55 Gas Tax & Traffic Cong. 20 1,039,411.17 1,039,411.17 61,628.51 1,039,411.17 1,039,411.17 168,675.23 - (107,046.72) 815,909.05 Local Transportation 21 240,000.00 240,000.00 - 240,000.00 240,000.00 - - - 1,048,394.57 Fines - Traffic Safety 24 85,758.93 85,758.93 2,431.63 85,758.93 85,758.93 19,633.88 - (17,202.25) 216,795.83 Road, Street & Transit - Restricted 1,365,170.10 1,365,170.10 64,060.14 1,365,170.10 1,365,170.10 188,309.11 - (124,248.97) 2,081,099.45 Total Road, Streets and Transit 1,365,170.10 1,365,170.10 64,060.14 1,365,170.10 1,365,170.10 188,309.11 - (124,248.97) 2,081,099.45 Fire Assessment Spec. Rev 30 386,000.00 386,000.00 86,327.19 636,420.25 636,420.25 22,735.92 (250,420.25) 63,591.27 1,508,553.76 Landfill Access Fee - Debt Service 31 243,000.00 243,000.00 61,059.57 243,000.00 243,000.00 183,744.22 - (122,684.65) 14,339.57 Developer Impact Fees 32 103,000.00 103,000.00 - 36,000.00 36,000.00 - 67,000.00 - 351,977.12 Special Revenue - Restricted 732,000.00 732,000.00 147,386.76 915,420.25 915,420.25 206,480.14 (183,420.25) (59,093.38) 1,874,870.45 Total Special Revenue 732,000.00 732,000.00 147,386.76 915,420.25 915,420.25 206,480.14 (183,420.25) (59,093.38) 1,874,870.45 Spec Grants Capital Outlay 60 260,000.00 260,000.00 - 772,000.00 772,000.00 119,417.19 (512,000.00) (119,417.19) 2,241,108.38 Community Development Grants 65 300,800.00 300,800.00 120.69 300,000.00 300,000.00 1,445.79 800.00 (1,325.10) 404,055.43 SUMIT Operating Fund 67 - - - - - - - - 409,910.75
Special Grants - Capital Projects 560,800.00 560,800.00 120.69 1,072,000.00 1,072,000.00 120,862.98 (511,200.00) (120,742.29) 3,055,074.56 Special Grants - Operating &
Capital Projects 560,800.00 560,800.00 120.69 1,072,000.00 1,072,000.00 120,862.98 (511,200.00) (120,742.29) 3,055,074.56 Solid Waste Operating 50 42,542.60 42,542.60 33,912.84 - 92,542.60 5,426.80 42,542.60 28,486.04 393,205.06 Solid Waste Capital Projects 51 - - - - - - - - (419,932.56) Solid Waste 42,542.60 42,542.60 33,912.84 - 92,542.60 5,426.80 42,542.60 28,486.04 (26,727.50) Solid Waste 42,542.60 42,542.60 33,912.84 - 92,542.60 5,426.80 42,542.60 28,486.04 (26,727.50) Water Operating 70 3,746,741.04 3,746,741.04 1,136,103.34 3,746,741.04 3,746,741.04 933,281.55 - 202,821.79 196,852.55 Water Capital Projects 71 2,534,500.00 2,534,500.00 (373,650.00) 2,534,500.00 2,534,500.00 14,463.28 - (388,113.28) 5,956,855.96 Water Debt Servicing 72 314,238.30 314,238.30 - 298,238.30 298,238.30 166.15 16,000.00 (166.15) 1,064,009.74 Water Reserves 74 (593,154.34) (593,154.34) - - - - (593,154.34) - 1,574,815.72 Water Enterprise 6,002,325.00 6,002,325.00 762,453.34 6,579,479.34 6,579,479.34 947,910.98 (577,154.34) (185,457.64) 8,792,533.97 Sewer Operating 80 3,323,508.70 3,323,508.70 848,921.34 3,323,508.70 3,323,508.70 670,517.76 - 178,403.58 200,897.56 Sewer Capital Outlay 81 1,900,000.00 1,900,000.00 - 1,900,000.00 1,900,000.00 - - - 5,035,095.77 Sewer Debt Servicing 82 422,457.50 422,457.50 - 402,457.50 402,457.50 204,228.75 20,000.00 (204,228.75) 422,136.95 Sewer Reserves 84 (397,408.20) (397,408.20) - - - - (397,408.20) - 2,402,240.62 Sewer Enterprise Fund 5,248,558.00 5,248,558.00 848,921.34 5,625,966.20 5,625,966.20 874,746.51 (377,408.20) (25,825.17) 8,060,370.90 Total Enterprise Funds 11,250,883.00 11,250,883.00 1,611,374.68 12,205,445.54 12,205,445.54 1,822,657.49 (954,562.54) (211,282.81) 16,852,904.87 SUMIT Agency Trust - Cash 92 - - - - - - - - 3,717.17
Agency Funds - - - - - - - - 3,717.17 \
Total Agency Funds - - - - - - - - 3,717.17
All Funds Combined 27,576,715.79 27,576,715.79 3,032,969.63 29,145,553.67 29,238,096.27 5,351,785.69 (1,568,837.88) (2,318,816.06) 33,471,183.55 Excess of Rev over Exp.-Surplus/
R E V E N U E E X P E N S E (Deficit)
Approval:______________________________________________________Colleen Baker, City Mayor 3/16/2026 3:30 PM Yreka City Council Agenda
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City of Yreka Financial Statement Groupings
Summary FY 25-26 YTD Fiscal Performance
as of September 30, 2025
ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt

1. GENERAL FUNDS
Revenue
801 REVENUE: PROP TAXES 1,592,950.00 1,592,950.00 4,083.47 -1,588,866.53 807 MVLF IN LIEU 875,000.00 875,000.00 0.00 -875,000.00 810 SALES TAX 6,950,000.00 6,950,000.00 527,895.41 -6,422,104.59 813 REVENUE: TOT TAXES 1,243,000.00 1,243,000.00 188,661.87 -1,054,338.13 814 REVENUE: FRANCHISE FEES 300,000.00 300,000.00 0.00 -300,000.00 815 REVENUE - LICENSES AND PERMITS 349,600.00 349,600.00 53,698.05 -295,901.95 825 REVENUE - FINES & FORFEITURES 250.00 250.00 5,922.23 5,672.23 830 REVENUE - USE OF MONEY & PROPERTY 385,800.00 385,800.00 2,740.50 -383,059.50 850 REVENUE - INTERGOVERNMENTAL 934,882.09 934,882.09 173,557.95 -761,324.14 870 REVENUE - USER FEES AND CHARGES 116,900.00 116,900.00 49,720.76 -67,179.24 880 ICA ALLOCATION 361,608.00 361,608.00 122,560.00 -239,048.00 882 REVENUE - OTHER 5,000.00 5,000.00 47,274.28 42,274.28 898 INTERFUND TRANSFERS 510,330.00 510,330.00 0.00 -510,330.00

1. GENERAL FUNDS Revenue Totals 13,625,320.09 13,625,320.09 1,176,114.52 -12,449,205.57 Expense
100 MAYOR, COUNCIL, CITY MANAGER, CLERK 757,889.98 757,889.98 54,632.56 703,257.42 110 EXP. GENERAL GOVERNMENT 1,289,208.14 1,289,208.14 903,974.96 385,233.18 130 PUBLIC SAFETY CODE ENFORCEMENT 341,274.33 341,274.33 37,066.38 304,207.95 200 PUBLIC SAFETY - POLICE 5,211,133.04 5,211,133.04 1,024,639.95 4,186,493.09 Wednesday, March 18, 2026 Page 1 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
210 PUBLIC SAFETY - FIRE 1,472,000.26 1,472,000.26 184,926.47 1,287,073.79 215 PUBLIC SAFETY - HAZARD MITIGATION 171,482.09 171,482.09 34,313.86 137,168.23 220 PLANNING AND DEVELOPMENT 1,136,202.09 1,136,202.09 254,753.26 881,448.83 300 PUBLIC WORKS - ENGINEERING AND ADMIN 122,480.38 122,480.38 21,683.48 100,796.90 350 PUBLIC WORKS - MECHANICAL MAINT (ELIM) 0.00 0.00 152,262.65 -152,262.65 370 PUBLIC WORKS - SERVICE CENTER (ELIM) 0.00 0.00 11,508.65 -11,508.65 400 CULTURAL & REC - PARKS AND REC 601,802.37 601,802.37 104,906.65 496,895.72 600 COMMUNITY DEVELOPMENT 96,500.00 96,500.00 45,801.59 50,698.41 645 CAPITAL OUTLAY 1,645,000.00 1,645,000.00 177,578.71 1,467,421.29 740 PRINCIPAL ON LT DEBT 38,000.00 38,000.00 0.00 38,000.00 745 INTEREST ON LT DEBT 88,375.00 88,375.00 0.00 88,375.00 760 INTERFUND TRANSFERS 616,170.10 616,170.10 0.00 616,170.10

1. GENERAL FUNDS Expense Totals 13,587,517.78 13,587,517.78 3,008,049.17 10,579,468.61

1. GENERAL FUNDS Net Position Change 37,802.31 37,802.31 -1,831,934.65 -1,869,736.96 Wednesday, March 18, 2026 Page 2 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 1. GENERAL FUNDS (1047 detail records)

2. STREETS FUNDS
Revenue
825 REVENUE - FINES & FORFEITURES 15,000.00 15,000.00 2,431.63 -12,568.37 830 REVENUE - USE OF MONEY & PROPERTY 17,000.00 17,000.00 0.00 -17,000.00 850 REVENUE - INTERGOVERNMENTAL 726,000.00 726,000.00 59,003.51 -666,996.49 870 REVENUE - USER FEES AND CHARGES 0.00 0.00 2,625.00 2,625.00 887 REVENUE: INKIND 11,000.00 11,000.00 0.00 -11,000.00 898 INTERFUND TRANSFERS 596,170.10 596,170.10 0.00 -596,170.10

2. STREETS FUNDS Revenue Totals 1,365,170.10 1,365,170.10 64,060.14 -1,301,109.96 Expense
300 PUBLIC WORKS - ENGINEERING AND ADMIN 90,686.10 90,686.10 13,015.76 77,670.34 310 PUBLIC WORKS - STREET MAINTENANCE 525,564.73 525,564.73 99,942.55 425,622.18 311 PUBLIC WORKS - STREET SWEEPING 86,160.98 86,160.98 21,904.23 64,256.75 312 PUBLIC WORKS - STREET LIGHTING 67,151.23 67,151.23 13,125.91 54,025.32 313 PUBLIC WORKS - WEED CONTROL STREETS 14,404.79 14,404.79 212.56 14,192.23 314 PUBLIC WORKS - PUBLIC PARKING LOTS 1,989.66 1,989.66 0.00 1,989.66 315 PUBLIC WORKS - STREETSCAPE MAINTENANCE 95,673.47 95,673.47 7,469.75 88,203.72 320 PUBLIC WORKS - TRAFFIC SAFETY 85,758.93 85,758.93 19,633.88 66,125.05 340 TRANSPORTATION 240,000.00 240,000.00 0.00 240,000.00 390 PUBLIC WORKS - STORM DRAINS 130,780.21 130,780.21 13,004.47 117,775.74 645 CAPITAL OUTLAY 27,000.00 27,000.00 0.00 27,000.00

2. STREETS FUNDS Expense Totals 1,365,170.10 1,365,170.10 188,309.11 1,176,860.99

2. STREETS FUNDS Net Position Change 0.00 0.00 -124,248.97 -124,248.97 Wednesday, March 18, 2026 Page 3 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 2. STREETS FUNDS (296 detail records)

3. SPECIAL REVENUE FUNDS
Revenue
811 OTHER TAXES 346,000.00 346,000.00 86,327.19 -259,672.81 815 REVENUE - LICENSES AND PERMITS 103,000.00 103,000.00 0.00 -103,000.00 830 REVENUE - USE OF MONEY & PROPERTY 40,000.00 40,000.00 0.00 -40,000.00 870 REVENUE - USER FEES AND CHARGES 243,000.00 243,000.00 61,059.57 -181,940.43

3. SPECIAL REVENUE FUNDS Revenue Totals 732,000.00 732,000.00 147,386.76 -584,613.24 Expense
100 COLLECTION EXPENSE 68,000.00 68,000.00 8,744.22 59,255.78 210 PUBLIC SAFETY - FIRE 45,000.00 45,000.00 54.36 44,945.64 645 CAPITAL OUTLAY 0.00 0.00 0.00 0.00
740 PRINCIPAL ON LT DEBT 211,882.34 211,882.34 143,482.89 68,399.45 745 INTEREST ON LT DEBT 54,537.91 54,537.91 54,198.67 339.24 760 INTERFUND TRANSFERS 536,000.00 536,000.00 0.00 536,000.00

3. SPECIAL REVENUE FUNDS Expense Totals 915,420.25 915,420.25 206,480.14 708,940.11

3. SPECIAL REVENUE FUNDS Net Position Change -183,420.25 -183,420.25 -59,093.38 124,326.87 Wednesday, March 18, 2026 Page 4 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 3. SPECIAL REVENUE FUNDS (43 detail records)

4. CAPITAL & CDBG GRANTS
Revenue
830 REVENUE - USE OF MONEY & PROPERTY 800.00 800.00 120.69 -679.31 850 REVENUE - INTERGOVERNMENTAL 560,000.00 560,000.00 0.00 -560,000.00

4. CAPITAL & CDBG GRANTS Revenue Totals 560,800.00 560,800.00 120.69 -560,679.31 Expense
600 COMMUNITY DEVELOPMENT 335,000.00 335,000.00 1,445.79 333,554.21 645 CAPITAL OUTLAY 737,000.00 737,000.00 119,417.19 617,582.81

4. CAPITAL & CDBG GRANTS Expense Totals 1,072,000.00 1,072,000.00 120,862.98 951,137.02

4. CAPITAL & CDBG GRANTS Net Position Change -511,200.00 -511,200.00 -120,742.29 390,457.71 Wednesday, March 18, 2026 Page 5 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 4. CAPITAL & CDBG GRANTS (112 detail records)

5. WATER FUNDS
Revenue
830 REVENUE - USE OF MONEY & PROPERTY 250,000.00 250,000.00 0.00 -250,000.00 850 REVENUE - INTERGOVERNMENTAL 1,984,500.00 1,984,500.00 -388,550.00 -2,373,050.00 870 REVENUE - USER FEES AND CHARGES 3,751,825.00 3,751,825.00 1,135,355.34 -2,616,469.66 882 REVENUE - OTHER 0.00 0.00 748.00 748.00
883 GAIN (LOSS) ON SALE OF ASSETS 0.00 0.00 14,900.00 14,900.00 898 INTERFUND TRANSFERS 16,000.00 16,000.00 0.00 -16,000.00

5. WATER FUNDS Revenue Totals 6,002,325.00 6,002,325.00 762,453.34 -5,239,871.66 Expense
100 COLLECTION EXPENSE 381,993.44 381,993.44 84,465.51 297,527.93 300 ENGINEERING 276,667.76 276,667.76 33,500.81 243,166.95 500 WATER DISTRIBUTION EXPENSE 1,385,337.99 1,385,337.99 158,384.44 1,226,953.55 510 WATER TREATMENT AND CONSERVATION 1,616,741.85 1,616,741.85 497,002.06 1,119,739.79 510 COST OF POWER AND WATER 386,000.00 386,000.00 100,628.73 285,371.27 645 CAPITAL OUTLAY 2,109,500.00 2,109,500.00 14,463.28 2,095,036.72 740 PRINCIPAL ON LT DEBT 183,791.43 183,791.43 0.00 183,791.43 745 INTEREST ON LT DEBT 114,446.87 114,446.87 166.15 114,280.72 799 ICA EXPENSE 125,000.00 125,000.00 59,300.00 65,700.00

5. WATER FUNDS Expense Totals 6,579,479.34 6,579,479.34 947,910.98 5,631,568.36

5. WATER FUNDS Net Position Change -577,154.34 -577,154.34 -185,457.64 391,696.70 Wednesday, March 18, 2026 Page 6 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 5. WATER FUNDS (344 detail records)

6. SEWER FUNDS
Revenue
830 REVENUE - USE OF MONEY & PROPERTY 125,000.00 125,000.00 0.00 -125,000.00 850 REVENUE - INTERGOVERNMENTAL 1,625,000.00 1,625,000.00 0.00 -1,625,000.00 870 REVENUE - USER FEES AND CHARGES 3,478,558.00 3,478,558.00 846,617.09 -2,631,940.91 882 REVENUE - OTHER 0.00 0.00 2,304.25 2,304.25
898 INTERFUND TRANSFERS 20,000.00 20,000.00 0.00 -20,000.00

6. SEWER FUNDS Revenue Totals 5,248,558.00 5,248,558.00 848,921.34 -4,399,636.66 Expense
100 COLLECTION EXPENSE 366,542.31 366,542.31 80,870.80 285,671.51 300 ENGINEERING 269,243.51 269,243.51 31,817.31 237,426.20 510 COST OF POWER AND WATER 330,000.00 330,000.00 47,406.65 282,593.35 550 WASTEWATER COLLECTION EXPENSE 851,692.40 729,692.40 96,135.31 633,557.09 560 WASTEWATER TREATMENT EXPENSE 1,297,422.48 1,419,422.48 351,027.69 1,068,394.79 645 CAPITAL OUTLAY 1,872,000.00 1,872,000.00 0.00 1,872,000.00 740 PRINCIPAL ON LT DEBT 196,000.00 196,000.00 101,000.00 95,000.00 745 INTEREST ON LT DEBT 206,457.50 206,457.50 103,228.75 103,228.75 799 ICA EXPENSE 236,608.00 236,608.00 63,260.00 173,348.00

6. SEWER FUNDS Expense Totals 5,625,966.20 5,625,966.20 874,746.51 4,751,219.69

6. SEWER FUNDS Net Position Change -377,408.20 -377,408.20 -25,825.17 351,583.03 Wednesday, March 18, 2026 Page 7 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 6. SEWER FUNDS (239 detail records)

7. LANDFILL FUNDS
Revenue
850 REVENUE - INTERGOVERNMENTAL 42,542.60 42,542.60 7,201.15 -35,341.45

7. LANDFILL FUNDS Revenue Totals 42,542.60 42,542.60 7,201.15 -35,341.45 Expense
380 PUBLIC WORKS - WASTE DISPOSAL 92,542.60 92,542.60 5,426.80 87,115.80

7. LANDFILL FUNDS Expense Totals 92,542.60 92,542.60 5,426.80 87,115.80

7. LANDFILL FUNDS Net Position Change -50,000.00 -50,000.00 1,774.35 51,774.35 Wednesday, March 18, 2026 Page 8 of 9
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ACCOUNT DESCRIPTION Adopted Bdgt Current Period Favorable or (Unfavorable)
Revised Operating
Bdgt
Summary for 'Auditor Fund' = 7. LANDFILL FUNDS (20 detail records) Grand Total 1,661,380.48 1,661,380.48 2,345,527.75 684,147.27 Wednesday, March 18, 2026 Page 9 of 9
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YREKA CITY COUNCIL MEETING MINUTES
March 17, 2026
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.

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.

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

The meeting was called to order at 6:30 pm.

2. ROLL CALL:

Councilmembers Davis, McCoy, Middleton, Clair & Baker are present 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
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3. APPROVAL OF THE AGENDA:

Motion to Approve the Agenda as Presented
MOTIONED: Councilmember Clair
SECOND: Councilmember McCoy
AYES: Councilmembers Davis, McCoy, Middleton, Clair & Baker NO’s: -0-
The motion passes unanimously

4. PRESENTATIONS:
 First 5 Siskiyou, Jean Trevison
The Siskiyou Child Abuse Prevention Council Collaborative Proclamation

5. PUBLIC COMMENTS:

Public comment received by: Tana Gliatto, Luther Finley, Melinda King, and Sherelle Cordes

6. 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 February 22, 2026, through March 7, 2026. b. Treasures Report for July 2025.
c. Treasures Report for August 2025.
d. Approval of the Minutes of the Regular Meeting held March 3, 2026. e. Motion to Authorize the City Manager, or his designee, to sign the Agreement with LACO Associates for Professional Services to Assist with Karuk Tribal Intergovernmental Agreement Meeting Facilitation Proposed in Exhibit A of the Attached Agreement Dated February 17, 2026. f. Adoption of the Siskiyou Child Abuse Prevention Council Collaborative Proclamation.

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

7. 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.

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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.

8. CITY BUSINESS:

Assistant City Manager
a.Agenda Title: Greenhorn Grange Events, Fee Waiver Request Recommended City Council Action: (1) Motion to Approve Greenhorn Grange’s Fee Waiver Requests or (2) A Motion to Deny Greenhorn Grange’s Fee Waiver Requests.

No public comment received
Motion to Approve Greenhorn Grange’s Fee Waiver Requests MOTIONED: Councilmember Middleton
SECOND: Councilmember Clair
AYES: Councilmembers Davis, McCoy, Middleton, Clair & Baker NO’s: -0-
The motion passes unanimously
f. CITY MANAGER/STAFF REPORTS:

Interim City Manager John Elsnab gave an update
g. MAYOR/COUNCILMEMBERS REPORTS, STATEMENTS AND REQUESTS:

Councilmember Middleton gave an update on COC.

Councilmember Davis gave an update on the Outsen Road Project and Fire Safe Council.

Councilmember Clair gave an update.

Councilmember Baker requested that city staff look into creating a universal fee waiver for special events. h. ADJOURNMENT:

Meeting adjourned at 7:07 pm
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____________________________
Mayor of the City of Yreka
Minutes approved by City Council
Motion on April 7, 2026
___________________________
Cyndy Prohaska, City Clerk

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YREKA CITY COUNCIL SPECIAL MEETING MINUTES
Thursday, March 26, 2026, at 5:00 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.

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.

1. 5:00 PM CALL TO ORDER CLOSED SESSION:

The meeting was called to order at 5:00 pm.

2. ROLL CALL:

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

3. PUBLIC COMMENT ON CLOSED SESSION ITEM:

No public comment received on closed session item.

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4. CLOSED SESSION:

5. 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 6:52 PM. There was no reportable action from closed session.

6. ADJOURNMENT:

Meeting adjourned at 6:52 pm.
____________________________
Mayor of the City of Yreka
Minutes approved by City Council
Motion on April 7, 2026
___________________________
Cyndy Prohaska, City Clerk
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CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council

Prepared by: Emily Aldrich Finance Director
Agenda title: Acceptance of the City of Yreka’s Audited Financial Statements for Fiscal Year 2024-25
Meeting date: April 7, 2026
Discussion:

The City’s audited financial statements were reviewed at the Finance Committee meeting held March 26, 2026. The final reports were issued on March 3, 2026, 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 2024-2025, 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 was one 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 2024-2025 Yreka City Council Agenda
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CITY OF YREKA,

CALIFORNIA

FINANCIAL STATEMENTS

TOGETHER WITH
INDEPENDENT AUDITOR’S REPORT

FOR THE YEAR ENDED
JUNE 30, 2025
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CITY OF YREKA
Annual Financial Report
For the Year Ended June 30, 2025
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 ...............................................................................................38-67 Required Supplementary Information (Unaudited):

City Pension Plan – Schedule of Proportionate Share of the Net Pension Liability ............................ 68 City Pension Plan – Schedule of Contributions.................................................................................... 69 City Pension Plan – Notes to City Pension Plan .................................................................................. 70 City OPEB Plan – Schedule of Changes in the Net OPEB Liability and Related Ratios .................... 71 City OPEB Plan – Schedule of Contributions...................................................................................... 72 City OPEB Plan – Notes to City OPEB Plan ....................................................................................... 73 Budgetary Comparison Schedule – General Fund ............................................................................... 74 Budgetary Comparison Schedule – Streets and Roads......................................................................... 75 Budgetary Comparison Schedule – Special Revenue........................................................................... 76 Notes to Budgetary Comparison Schedules ......................................................................................... 77 Yreka City Council Agenda
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INTRODUCTORY SECTION
• List of Officials
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CITY OF YREKA
List of Officials
For the Year Ended June 30, 2025
-iCity Council
Colleen Baker Mayor
James Clair Mayor Pro-Tempore
Drake Davis Member
Paul McCoy Member
Corey Middleton Member
City Staff
John Elsnab Interim - 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 Melissa Sandberg Interim - HR Director
Jerry Lemos Fire Chief
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FINANCIAL SECTION
• Independent Auditor’s Report
• Management’s Discussion and Analysis
• Basic Financial Statements
• Required Supplementary Information
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CERTIFIED PUBLIC ACCOUNTANTS
-1-
950 THARP ROAD, SUITE 502 YUBA CITY, CA 95993 TEL: (530) 673-9790 FAX: (530) 673-1305 [email protected]

SMITH & NEWELL
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
City of Yreka
Yreka, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information of the City of Yreka, California (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

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

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

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

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

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-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.

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-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 February 19, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.

The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Smith & Newell CPAs
Yuba City, California
February 19, 2026
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Management’s Discussion and Analysis
(Unaudited)
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-4-
City of Yreka
Management’s Discussion and Analysis
For the Year Ended June 30, 2025
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, 2025. 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. 2024-2025 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 $82,114,158. Of this amount, $17,049,398 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 $2,150,098 from $32,135,005 in 2023-24 to $34,285,103 in 2024-25. The governmental activities unrestricted net position was $3,663,660 in 2023-24 and $2,888,144 in 2024-25.
• The increase in the governmental activities total net position balance of $2,150,098 is primarily due to a $1,156,968 increase in invested capital assets net of related debt, $1,768,646 increase in restricted net position, and decrease to the unrestricted net position of $775,516. • Total assets for governmental activities balance increased $1,977,206 from $44,679,410 in 2023- 24 to $46,656,616 in 2024-25.
o Current assets balance increased $920,082, where $162,506 was an increase in cash and investments balances, and $275,363 was an increase to the receivables and inventory account balances.
o Restricted assets increased by $16,644 from $631,666 in 2023-24 to $648,310 in 2024-25.

Restricted net assets include donor restricted cash and debt servicing cash reserve requirements. o Net OPEB assets increased by $9,582 from $0 in 2023-24 to $9,582 in 2024-25. o Capital assets increased $1,030,898 from $23,492,432 in 2023-24 to $24,523,330 in 2024-25.

The increase was offset by depreciation expense of $1,135,834. The increase was due to expenditures for new assets of $2,304,777.

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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-5-
o Deferred Outflows for governmental activities balance decreased $1,245,836 from $4,899,682 in 2023-24 to $3,653,846 in 2024-25.
o Pension related outflows decreased by $1,181,741 from $4,594,951 in 2023-24 to $3,413,210 in 2024-25.
o OPEB related outflows decreased by $64,095 from $304,731 in 2023-24 to $240,636 in 2024-25.
• Total liabilities for governmental activities balance decreased $570,218 from $14,790,852 in 2023- 24 to $14,220,634 in 2024-25.
o Current liabilities balance decreased $445,272, primarily due to a $25,026 increase in accounts payable, $78,832 increase in payroll payable, $584,518 decrease in unearned revenue. o Net pension liability decreased $181,287.
o Net OPEB liabilities decreased $189,497 from $189,497 in 2023-24 to $0 in 2024-25 o Long-term debt from borrowings increased $245,838 for scheduled debt repayments. o Compensated absences decreased by a net of $486,864, new GASB compliance was implemented to include sick days.
• Governmental activities deferred inflows were $2,653,235 in 2023-24 and $1,804,725 in 2024-25 for an decrease of $848,510.
o Pension deferred inflows decreased $980,624.
o OPEB deferred inflows increased $132,114.

Business-Type Activities
• The business-type activities total net position balance increased by $2,963,727 from $44,865,328 in 2023-2024 to $47,829,055 in 2024-2025 due to:
o Invested in capital assets net of related debt increased $2,497,286. o The restricted net position represents the City’s debt servicing reserve requirements that remained at $910,000 in 2023-2024 and 2024-2025 to satisfy full funding of the City’s debt servicing requirements.
o Unrestricted net position balance increased by $467,194 from $13,694,060 in 2023-24 to $14,161,254 in 2024-25. The increase is primarily due to the City receiving reimbursement of previously expended monies for capital projects.
• Total assets for business-type activities balance increased by $1,667,356 from $63,755,989 in 2023-24 to $65,423,345 in 2024-25.

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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-6-
o Current asset balances decreased $414,904 from $17,517,774 in 2023-24 to $17,102,870 in 2024-25, of which cash and investment balances increased $6,646,663 and receivable balances decreased $7,061,567, of which $7,197,469 was an decrease in intergovernmental receivables. o Net OPEB assets increased from $0 in 2023-24 to $5,873 2024-25. o Restricted cash balance remained at $910,000 in 2023-24 and 2024-25 for debt servicing reserves.
o Capital assets increased $2,076,387 from $45,328,215 in 2023-24 to $47,404,602 in 2024-25. o Deferred outflows decreased $466,072 from $1,812,375 in 2023-24 and $1,346,303 in 2024-

25. • Total liabilities for business-type activities balance decreased $1,526,892 from $19,907,812 in 2023-24 to $18,380,920 in 2024-25.
o Current liabilities balance decreased $930,406.
o Net pension liability decreased $156,682.
o Net OPEB liability decreased $121,155 from $121,155 in 2023-24 to $0 in 2024-25 o Long-term liabilities balance decreased $318,649.
• Deferred inflows decreased $236,304 from $795,977 in 2023-24 to $559,673 in 2024-25.

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.

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).

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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-7-
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:

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fiscal year 2024-2025, the differences are attributable to:
(1) the recognition of capital assets,
(2) the recognition of long-term assets that are not available to pay for current period expenditures, (3) the deferred outflows of resources related to pension and other post-employment benefits, (4) the deferred inflows of resources related to pension and other post-employment benefits, (5) and that certain liabilities are not due and payable in the current period and therefore are not reported in the government funds.

The analysis of these two statements helps the reader understand the long-term impact of the City’s capital expenditures and financing decisions.

Reconciliation of the Statement of Revenues, Expenditures and Changes in Funds Balance to the Statement of Activities - Governmental Funds:

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net position of governmental activities. In 2024-2025, the differences are attributable to:
(1) change in capital outlay net of depreciation,
(2) change in long-term debt net of repayments,
(3) change in unavailable revenues
(4) change in deferred inflows and outflows, and
(5) change in other post-employment benefits, compensated absences, and pension obligations, (6) net cost arising from the disposal of capital assets.

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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-8-
The major funds within governmental funds include the General Fund, Special Revenue Fund, Special Grants Fund, and Streets and Roads Fund. The major governmental funds are presented in (1) the governmental fund balance sheet, (2) the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the governmental funds, and (3) the reconciliation of the Statement of Revenues, Expenditures and Changes in Funds Balance to the Statement of Activities Governmental Funds, found on Pages 27 through 30 of this report.

The City of Yreka normally adopts a biannual appropriated budget for each of its governmental funds. A budgetary comparison statement for the governmental funds demonstrates compliance with the budget and is located on pages 74 through 76 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 business-type 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 governmentwide 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.

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 67 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 68 through 77 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 $34,285,103 for governmental activities and $47,829,055 for business-type activities, a total of $82,114,158, at the close of fiscal year 2024-2025.

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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-9-
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 2023-2024 $32,135,005 $ 44,865,328 $77,000,333 Fiscal Year 2024-2025 34,285,103 47,829,055 82,114,158
Increase or (Decrease) in Net Position $ 2,150,098 $ 2,963,727 $ 5,113,825 Yreka City Council Agenda
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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-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
2023-2024 2024-2025
2023-2024 as
the base year
Current assets and other assets $ 20,555,312 $ 21,475,394 $ 920,082 4.5% Restricted assets 631,666 648,310 16,644 2.6%
Net OPEB assets - 9,582 9,582 100.0%
Non-current assets 23,492,432 24,523,330 1,030,898 4.4% Total Assets 44,679,410 46,656,616 1,977,206 4.4%
Deferred Outflows 4,899,682 3,653,846 (1,245,836) -25.4% Total Deferred Outflows 4,899,682 3,653,846 (1,245,836) -25.4% Current liabilities 1,424,024 978,752 (445,272) -31.3%
Net pension liability 9,093,745 8,912,458 (181,287) -2.0% Net OPEB liability 189,497 - (189,497) 100.0%
Long-term liabilities 4,083,586 4,329,424 245,838 6.0%
Total Liabilities 14,790,852 14,220,634 (570,218) -3.9% Deferred Inflows 2,653,235 1,804,725 (848,510) -32.0%
Total Deferred Inflows 2,653,235 1,804,725 (848,510) -32.0% Net position:

Net investment in capital assets 20,788,637 21,945,605 1,156,968 5.6% Restricted 7,682,708 9,451,354 1,768,646 23.0%
Unrestricted 3,663,660 2,888,144 (775,516) -21.2%
Total Net Position $ 32,135,005 $ 34,285,103 $ 2,150,098 6.7% Governmental Activities
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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-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
2023-2024 2024-2025
2023-2024 as
the base year
Current assets and other assets $ 17,517,774 $ 17,102,870 $ (414,904) -2.4% Restricted assets 910,000 910,000 - 0.0%
Net OPEB assets - 5,873 5,873 100.0%
Non-current assets 45,328,215 47,404,602 2,076,387 4.6% Total Assets 63,755,989 65,423,345 1,667,356 2.6%
Deferred Outflows 1,812,375 1,346,303 (466,072) -25.7%
Total Deferred Outflows 1,812,375 1,346,303 (466,072) -25.7% Current liabilities 1,231,081 300,675 (930,406) -75.6%
Net pension liability 3,419,825 3,263,143 (156,682) -4.6% Net OPEB liability 121,155 - (121,155) 100.0%
Long-term liabilities 15,135,751 14,817,102 (318,649) -2.1% Total Liabilities 19,907,812 18,380,920 (1,526,892) -7.7% Deferred Inflows 795,977 559,673 (236,304) -29.7%
Total Deferred Inflows 795,977 559,673 (236,304) -29.7% Net position:

Net investment in capital assets 30,260,515 32,757,801 2,497,286 8.3% Restricted 910,000 910,000 - 0.0%
Unrestricted 13,694,060 14,161,254 467,194 3.4%
Total Net Position $ 44,864,575 $ 47,829,055 $ 2,964,480 6.6% Business-Type Activities
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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-12-
Comparison of Government-Wide Revenues:

Total primary government revenue decreased $6,777,614 from $32,318,558 in 2023-24 to $25,540,944 in 2024-25.

Governmental Activities
Governmental activities program revenue increased $521,597. There was an increase of $33,587 charges for fees and services (development impact fee revenue) and a decrease of $379,122 operating grants and contributions (reimbursement mutual aid response for public safety). Capital grants increased by $867,132 reflective of one-time revenue.
2023-2024 2024-2025
Year-OverYear Change
Governmental Activities:

Program Revenue
Charges for services $ 1,290,357 $ 1,323,944 $ 33,587
Operating grants and contributions 2,505,894 2,126,772 (379,122) Capital grants and contributions 730,386 1,597,518 867,132 Total Program Revenue 4,526,637 5,048,234 521,597
General Revenue
Taxes:

Property 2,269,134 2,486,828 217,694
Sales and use 4,343,898 4,963,347 619,449
Transient occupancy taxes 1,508,855 937,844 (571,011)
Franchise taxes 355,203 388,057 32,854
Interest and investment earnings 821,941 771,007 (50,934) Miscellaneous 207,605 209,536 1,931
Gain (loss) on disposal of
capital assets 134,567 - 134,567
Transfers (579,172) 508,060 1,087,232
Total General Revenues and Transfers 8,927,464 10,399,246 1,471,782 Total Governmental Activities 13,454,101 15,447,480 1,993,379 Business-Type Activities:

Program Revenue
Charges for services 6,348,476 6,773,527 425,051
Operating grants and contributions 11,463,849 3,289,881 (8,173,968) Total Program Revenue 17,812,325 10,063,408 (7,748,917) General Revenue
Interest and investment earnings 451,606 531,484 79,878 Miscellaneous revenue 21,354 6,632 (14,722)
Transfers 579,172 (508,060) (1,087,232)
Total General Revenues and Transfers 1,052,132 (1,022,076) 30,056 Total Business-Type Activities 18,864,457 10,093,464 (8,770,993) Total Primary Government $ 32,318,558 $ 25,540,944 $ (6,777,614) Yreka City Council Agenda
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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-13-
Governmental activities general revenues increased $1,471,782. • Sales tax increased by $619,449 from the previous earnings in 2023-24, and began collection on new Sales Tax Measure V.
• Investment earnings decreased by $50,934 primarily due to changes in portfolio valuation for unrealized losses due to lower rates on CDs.
• Net transfers out increased by $1,087,232 in 2024-2025 due to having increased sales tax revenue that the City is planning on using to assist with building a new fire hall. • Transient occupancy taxes decreased by $571,011 due to one-time catch-up payment from delinquent proprietor in 2023-2024.

Business-Type Activities
Business-type activities program revenue decreased by $7,748,917. Charges for services increased by $425,051 due to schedule rate increases. Revenue from capital grants decreased by $8,173,968.

Business-type activities general revenue decreased by $1,022,076. Net transfers decreased by $1,087,232 in 2024-2025.

Comparison of Government Wide Program Expenses:

Primary government expenses decreased $78,130 from $19,861,323 in 2023-24 to $19,783,193 in 2024-

25. Functional expenses for governmental activities increased $847,117 from $11,912,626 in 2023-24 to $12,759,743 in 2024-25.
2023-2024 2024-2025
Year-OverYear Change
Governmental Activities:

Program Expense
General government $ 1,402,675 $ 2,257,156 $ 854,481
Public safety 6,134,531 6,410,572 276,041
Public ways and facilities 1,833,233 1,634,513 (198,720) Culture and recreation 960,765 1,066,980 106,215
Community development 1,422,918 1,239,770 (183,148)
Interest on long-term debt 158,504 150,752 (7,752)
Total Governmental Activities 11,912,626 12,759,743 847,117 Business-Type Activities:

Program Expense
Sewer 3,683,839 3,270,736 (413,103)
Water 4,264,858 3,752,714 (512,144)
Total Business-Type Activities 7,948,697 7,023,450 (925,247) Total Primary Government $ 19,861,323 $ 19,783,193 $ (78,130) Yreka City Council Agenda
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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-14-
Government-wide adjustments include changes in pension valuation, other post-employment benefits, compensated absences, debt-servicing interest and capitalization and amortization of fixed assets. Detail changes in maintenance and operating expenses are detailed in the governmental fund section of this report. • General governmental expense increased $854,481.
• Public safety increased $276,041, primarily due to significant increases in pension liability, workman’s comp and operating expenses.
• Public ways and facilities expenses decreased $198,720. • Culture and recreation expense increased $106,215.
• Community development expense decreased $183,148, significant decrease to professional and contractual services in connection with the update of the City’s general plan. • Interest on long term debt decreased $7,752.

Functional expenses for business-type activities decreased $925,247 from $7,948,697 in 2023-24 to $7,023,450 in 2024-25.
• Sewer program expense decreased $413,103.
• Water program expense decreased $512,144.

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 55 to 56 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 $20,030,240. The following describes the fund balances designations:

Nonspendable: The nonspendable governmental fund balances for the City total $68,136 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.

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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-15-
Restricted: The restricted governmental fund balances for the City totaled $6,144,987. Of the $1,166,522 General Fund balance, $648,310 is reserved for capital outlays and represents the Crandall and Stewart specified donated funds. The City has expenditure control restricted to special capital outlays pursuant to donor wills. Restricted balances in special grant funds includes program income, generated from the City’s residential and business lending, that is restricted by the grantor in re-use. Special revenue funds have a restricted fund balance from voter-approved parcel tax assessment for fire protective services. Special revenue funds capital improvement reserves are from developer fees and are restricted to planned improvements. Street and road restricted balances are from statewide fuel (highway users tax accounts, or HUTA), restricted sales taxes (local transportation funds), and transfers in from the General Fund (restricted to transit, road and street construction, maintenance, and improvements).

Committed: The committed governmental fund balances for the City are zero.

Assigned: The restricted fund balances for the City are $4,249,129. 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 $9,567,988 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 $47,829,055, and the unrestricted net position was $14,161,254. In the statement on Cash Flows, pages 34-35, the net increase in cash shows a net increase of $6,646,663. The sewer cash balance increased $2,408,292. The water utility proprietary funds cash balance increased $4,238,371. Overall, increases to cash balances replenish 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.

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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-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 74 through 76 of this report.

General Fund:
• Total revenues were $10,234,159 in the original budget, $12,042,571 in the final budget and $11,814,459 for actuals.
• The revenue increase of $1,808,412 in the final budget to adopted budget is primarily due to increases in intergovernmental revenue and the passing of Measure V, a new 1% sales tax. • The revenue decrease of $228,112 in the actual to final budget is primarily due to inaccurate estimation of how much would be collected on the new sales tax. (Unfavorable) Variance With
General Fund Original Final Actual Final to Org. Actual to Final Revenue $ 10,234,159 $ 12,042,571 $ 11,814,459 $ 1,808,412 $ (228,112) Expense 9,402,061 10,019,544 10,068,283 (617,483) (48,739) Excess (deficiency) of revenue over (under) expenses 832,098 2,023,027 1,746,176 1,190,929 (276,851) Other Financing Sources and (Uses) (785,706) (1,613,077) (1,675,079) (827,371) (62,002) Net Change in Fund Balance $ 46,392 $ 409,950 $ 71,097 $ 363,558 $ (338,853) (Unfavorable) Variance With
Special Grants Original Final Actual Final to Org. Actual to Final Revenue $ 1,075,600 $ 1,840,800 $ 680,511 $ 765,200 $ (1,160,289) Expense 1,090,000 2,489,818 2,228,273 (1,399,818) 261,545 Excess (deficiency) of revenue over (under) expenses (14,400) (649,018) (1,547,762) (634,618) (898,744) Other Financing Sources and (Uses) - 1,420,000 1,839,340 1,420,000 419,340 Net Change in Fund Balance $ (14,400) $ 770,982 $ 291,578 $ 785,382 $ (479,404) (Unfavorable) Variance With
Special Revenue Original Final Actual Final to Org. Actual to Final Revenue $ 619,000 $ 981,500 $ 994,921 $ 362,500 $ 13,421 Expense 345,727 586,727 439,877 (241,000) 146,850
Excess (deficiency) of revenue over (under) expenses 273,273 394,773 555,044 121,500 160,271 Other Financing Sources and (Uses) (9,500) (24,745) (258,643) (15,245) (233,898) Net Change in Fund Balance $ 263,773 $ 370,028 $ 296,401 $ 106,255 $ (73,627) (Unfavorable) Variance With
Streets and Roads Original Final Actual Final to Org. Actual to Final Revenue $ 665,400 $ 614,264 $ 865,090 $ (51,136) $ 250,826 Expense 1,451,106 1,462,341 1,484,255 (11,235) (21,914) Excess (deficiency) of revenue over (under) expenses (785,706) (848,077) (619,165) (62,371) 228,912 Other Financing Sources and (Uses) 785,706 848,077 892,246 62,371 44,169 Net Change in Fund Balance $ - $ - $ 273,081 $ - $ 273,081 Schedule of Revenues and Expenditures – Budget to Actual 2024-2025 Yreka City Council Agenda
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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-17-
• Total expenses were $9,402,061 in the original budget, $10,019,544 in the final budget and $10,068,283 for actuals.
• The expense increased by $617,483 in the final budget to adopted budget in public safety fire $34,780 due to preparing for the hiring of new personnel. Police increased $434,151 in part due to the increase in personnel costs.
• Other Financing Sources and (Uses) were ($785,706) in the original budget, ($1,613,077) in the final budget and ($1,675,079) for actuals.
• The change in the General Fund balance was $46,392 in the original budget, $409,950 in the final budget and $71,097 for actuals. The increase in revenues is mainly attributable to a new sales tax measure and investment earnings.

Special Grant Fund:
• Special grant funds were not a major special revenue fund in fiscal year 2024-2025.

Special Revenue Fund:
• Revenues were $619,000 in the original budget, $981,500 in the final budget and $994,921 for actuals.

The increase in revenues is mainly attributable to the increase in licenses and permits, due to increased compliance.
• Expenses were $345,727 in the original budget and $586,727 in the final budget, and $439,877 for actuals.
• Other Financing Sources and (Uses) were $(9,500) in the original budget, ($24,745) in the final budget and ($258,643) for actuals. Additional transfers were made to backfill the City’s portion of projects.

Streets and Roads Fund:
• Revenues were $665,400 in the original budget, $614,264 in the final budget and $865,090 for actuals. • Expenses were $1,451,106 in the original budget, $1,462,341 in the final budget and $1,484,255 for actuals.
• Other financing sources were $785,706 in the original budget and $848,077 in the final budget and actuals that reflects a transfer in of $892,246 from the general operating fund.

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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-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, 2025, amounts to $71,927,930 (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, 2024 Additions Retirements
Transfers/
Adjustments
Balance
June 30, 2025
Governmental Activities:

Capital assets not being depreciated;
Land $ 2,204,965 $ - $ - $ - $ 2,204,965
Construction in Progress 2,790,543 1,891,423 (138,045) (296,592) 4,247,329 Total Capital Assets, Not Being Depreciated 4,995,508 1,891,423 (138,045) (296,592) 6,452,294 Capital assets being depreciated;
Building and Structures 11,764,744 - - - 11,764,744
Machinery and Equipment 6,999,444 396,162 595,345 7,990,951 Subscription-based information technology
arrangements 22,011 17,192 - 39,203
Infrastructure 34,131,267 - (527,368) - 33,603,899
Governmental Activities Capital Assets 57,912,974 2,304,777 (70,068) (296,592) 59,851,091 Less Accumulated Depreciation (34,420,542) (1,135,834) 228,615 - (35,327,761) Governmental Activities Capital Assets, Net 23,492,432 1,168,943 (70,068) 24,523,330 (67,977) Business-Type Activities:

Capital assets not being depreciated;
Land 374,428 - - 374,428 -
Construction in Progress 17,298,101 3,046,471 (5,793,925) - 14,550,647 Total Capital Assets, Not Being Depreciated 17,672,529 3,046,471 (5,793,925) - 14,925,075 Capital assets being depreciated;
Building and Structures 12,493,673 - - 12,493,673 -
Machinery and Equipment 9,241,469 263,451 9,504,920 -
Subscription-based information technology
arrangements - - - -
Infrastructure 35,845,326 - 5,793,925 - 41,639,251
Total Business Activities Capital Assets 75,252,997 3,309,922 - 78,562,919 - Less Accumulated Depreciation (29,924,782) (1,233,537) (31,158,319) - Business-Type Capital Assets, Net 45,328,215 2,076,385 - 47,404,600 - Total Capital Assets, Net $ 68,820,647 $ 3,245,328 (70,068)$ $ 71,927,930 (67,977) $ Yreka City Council Agenda
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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-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 2024-2025 CIP totals $4,247,329. o Of the outstanding construction in progress, $1,582,552 relates to the Flood Hazard Reduction Grant for the flood corridor development project along Yreka Creek. • Machinery and Equipment - The City acquired a new street sweeper, tractor loader, and installed a heavy equipment lift with a new concrete pad which the cost was shared with the business-type activities.

Business-Type Activities
• Construction in Progress - Additions to construction in process projects were $3,046,471 for water distribution and sewer collection systems capital projects, primarily relating to water $380,590 for the Davis well improvement project, $2,609,977 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 $17,838. • Transfers – the completion of the highway 3 replacement project in the amount of $5,793,925. • Machinery and Equipment - The City acquired equipment including street sweeper, tractor loader, and installed a heavy equipment lift with a new concrete pad.

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April 7, 2026

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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-20-
Changes in Long-Term Liabilities, Long-Term Debt and Compensated Absences:

Changes in Long-Term Liabilities
North Street Water Main replacement, August 29,
2011
At the end of 2024-2025, total longterm liabilities were $19,146,526. That includes $1,554,348 for the current
portion of long-term debt and
compensated absences. The City’s
balances for compensated absences
increased by $486,864 for
governmental activities and increased
by $102,250 for business-type
activities.

Detailed information on lenders, rates and maturities for long-term debt can be found on pages 51 through 54 of this report.

Long-Term Liabilities
June 30, 2024 Additions Reductions June 30, 2025
Current
Portion
Governmental Activities:

Compensated Absences $ 266,499 $ 537,639 $ (50,775) $ 753,363 $ 753,364 Capital Lease 178,794 - (88,069) 90,725 90,726
Loans Payable - Governmental
Agencies 1,113,293 - (114,957) 998,336 121,156
Certificates of participation -
USDA Rural Development 2,525,000 - (38,000) 2,487,000 39,000 Subscription-based information
technology arrangements - 17,192 (17,192) - -
Governmental Activities 4,083,586 554,831 (308,993) 4,329,424 1,004,246 Business-Type Activities:

Compensated Absences 68,051 106,287 (4,037) 170,301 170,301 Capital Lease 120,700 - (84,899) 35,801 35,801
Certificates of participation -
USDA Rural Development 14,947,000 - (336,000) 14,611,000 344,000 Business-Type Activities 15,135,751 106,287 (424,936) 14,817,102 550,102 Total Long-Term Liabilities $ 19,219,337 $ 661,118 $ (733,929) $ 19,146,526 $1,554,348 Yreka City Council Agenda
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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-21-
Next Year’s Budgets and Rates:

Budget Highlights for 2025-2026:

Below are highlights for fiscal year 2025-26 from the City’s biannual budget, adopted by the City Council on November 2, 2024, and then amended October 21, 2025. The budget can be found on the City’s website, http://ci.yreka.ca.us.

City of Yreka
2025-26 Adopted Budget
For governmental activities, the City projects a $656,818 decrease in fund balances. Reserves have been accumulated in prior years for planned system capital improvements within the Special Grant fund for future improvements.

For business-type activities, the City anticipates a $954,562 decrease to fund balance reserves. The decrease in the business-type funds reflects operational activity that was previously anticipated and held in reserves.

Adopted
Budgeted
Revenue
Adopted
Budgeted
Expense
Excess of
Revenue over
Expense
Total General Fund $ 13,625,320 $ 13,587,518 $ 37,802
Total Special Rev. Fund 732,000 915,420 ($183,420)
Total Streets and Roads 1,365,170 1,365,170 $0
Special Grant Fund 560,800 1,072,000 ($511,200)
16,283,290 16,940,108 (656,818)
Sewer Fund 5,248,558 5,625,966 (377,408)
Water Fund 6,002,325 6,579,479 (577,154)
Total Business-Type Funds 11,250,883 12,205,445 (954,562) All Funds Combined $ 27,534,173 $ 29,145,553 $ (1,611,380) Total Governmental Activity Funds
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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-22-
General Fund Revenue Projections:

General Fund - Fiscal Year Mainstream Revenue Comparison Horizon Issues for 2025-2026:

1. Uncertainty of the global market and potential stagnation.

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. Securing the City’s senior water rights at Fall Creek.

4. Growth in the City’s homeless population.

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

6. Retention and recruitment of human talent and increased demand for public safety services.

7. Revenue development and pension funding, including long-term financial planning.

8. Development of the City’s twenty-year general plan update.

9. Beginning a three-year water meter cellular head replacement project.

Actual
22-23
Actual
23-24
Actual
24-25
Adopted
Budget
25-26
Property Tax (secured & unsec. roll) $ 1,395,030 $ 1,465,429 $ 1,596,007 $ 1,592,950 Property Tax arising from MVLF shift (1) 737,934 794,038 890,820 875,000 Transient Lodging 1,118,525 1,094,011 1,400,288 1,243,000 Sales Tax 4,451,192 4,343,898 4,963,347 6,950,000
Franchises 314,153 355,203 388,057 300,000
Licenses and Permits 313,461 378,323 295,091 349,600
Fines and Forfeitures (4,387) (7,671) 9,762 250
Use of Money and Property 193,670 667,014 731,127 385,800 Intergovernmental 1,050,859 1,466,822 1,524,002 934,882 User Fees and Charges 58,003 136,941 62,743 116,900
Administrative Cost Recovery (2) 368,391 528,000 528,000 361,608 Other Revenues 15,180 196,092 292,155 5,000
Subtotal General Fund Revenue $10,012,011 $11,418,100 $12,681,399 $13,114,990 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.

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CITY OF YREKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2025
-23-
Request 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.

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Basic Financial Statements
• Government-Wide Financial Statements
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CITY OF YREKA
Statement of Net Position
June 30, 2025
Governmental Business-Type
Activities Activities Totals
ASSETS
Cash and investments $ 17,893,820 $ 12,940,734 $ 30,834,554 Receivables:

Accounts 269,889 756,655 1,026,544
Intergovernmental 1,418,384 3,259,006 4,677,390
Interest 177,982 146,475 324,457
Taxes 1,647,183 - 1,647,183
Restricted cash and investments 648,310 910,000 1,558,310 Loans receivable, net 68,136 - 68,136
Net OPEB asset 9,582 5,873 15,455
Capital assets:

Non-depreciable 6,452,294 14,925,076 21,377,370
Depreciable, net 18,071,036 32,479,526 50,550,562
Total capital assets 24,523,330 47,404,602 71,927,932
Total Assets 46,656,616 65,423,345 112,079,961

DEFERRED OUTFLOWS OF RESOURCES
Deferred pension adjustments 3,413,210 1,163,168 4,576,378 Deferred OPEB adjustments 240,636 183,135 423,771
Total Deferred Outflows of Resources 3,653,846 1,346,303 5,000,149

LIABILITIES
Accounts payable 514,768 185,107 699,875
Salaries and benefits payable 270,706 - 270,706
Retention payable 32,656 - 32,656
Interest payable 22,094 115,568 137,662
Deposits payable 60,226 - 60,226
Unearned revenue 78,302 - 78,302
Long-term liabilities:

Due within one year 1,004,246 550,102 1,554,348
Due in more than one year 3,325,178 14,267,000 17,592,178 Net pension liability 8,912,458 3,263,143 12,175,601
Total Liabilities 14,220,634 18,380,920 32,601,554

DEFERRED INFLOWS OF RESOURCES
Deferred pension adjustments 1,541,330 362,589 1,903,919 Deferred OPEB adjustments 263,395 197,084 460,479
Total Deferred Inflows of Resources 1,804,725 559,673 2,364,398 The notes to the basic financial statements are an integral part of this statement. -24-
Continued (Page 1 of 2)
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CITY OF YREKA
Statement of Net Position
June 30, 2025
Governmental Business-Type
Activities Activities Totals

NET POSITION
Net investment in capital assets 21,945,605 32,757,801 54,703,406 Restricted for:

Public safety 1,885,249 - 1,885,249
Public ways and facilities 2,219,333 - 2,219,333
Culture and recreation 31,349 - 31,349
Community development 925,138 - 925,138
Capital projects 3,547,720 - 3,547,720
Debt service 842,565 910,000 1,752,565
Unrestricted 2,888,144 14,161,254 17,049,398
Total Net Position $ 34,285,103 $ 47,829,055 $ 82,114,158 The notes to the basic financial statements are an integral part of this statement. -25-
Continued (Page 2 of 2)
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CITY OF YREKA
Statement of Activities
For the Year Ended June 30, 2025
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs: Expenses Services Contributions Contributions Governmental activities:

General government $ 2,257,156 $ 516,559 $ 449,617 $ -
Public safety 6,410,572 476,778 895,819 -
Public ways and facilities 1,634,513 139,597 730,991 1,597,518 Culture and recreation 1,066,980 11,315 - -
Community development 1,239,770 179,695 50,345 -
Interest on long-term debt 150,752 - - -
Total Governmental Activities 12,759,743 1,323,944 2,126,772 1,597,518 Business-type activities:

Sewer 3,270,736 3,264,378 - 2,847,191
Water 3,752,714 3,509,149 - 442,690
Total Business-Type Activities 7,023,450 6,773,527 - 3,289,881 Total $ 19,783,193 $ 8,097,471 $ 2,126,772 $ 4,887,399
General Revenues:

Taxes:

Property taxes
Sales and use taxes
Transient occupancy taxes
Franchise taxes
Interest and investment earnings
Miscellaneous
Gain (Loss) on sale of capital asset
Transfers
Total General Revenues and Transfers
Change in Net Position
Net Position - Beginning
Change in accounting principle
Net Position - Beginning, Restated
Net Position - Ending
The notes to the basic financial statements are an integral part of this statement. -26-
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Net (Expense) Revenue and
Changes in Net Position
Governmental Business-Type
Activities Activities Totals
$ (1,290,980) $ - $ (1,290,980)
(5,037,975) - (5,037,975)
833,593 - 833,593
(1,055,665) - (1,055,665)
(1,009,730) - (1,009,730)
(150,752) - (150,752)
(7,711,509) - (7,711,509)
- 2,840,833 2,840,833
- 199,125 199,125
- 3,039,958 3,039,958
(7,711,509) 3,039,958 (4,671,551)
2,486,828 - 2,486,828
4,963,347 - 4,963,347
937,844 - 937,844
388,057 - 388,057
771,007 531,484 1,302,491
209,536 6,632 216,168
134,567 - 134,567
508,060 (508,060) -
10,399,246 30,056 10,429,302
2,687,737 3,070,014 5,757,751
32,135,005 44,865,328 77,000,333
(537,639) (106,287) (643,926)
31,597,366 44,759,041 76,356,407
$ 34,285,103 $ 47,829,055 $ 82,114,158
The notes to the basic financial statements are an integral part of this statement. -26-
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Basic Financial Statements
• Fund Financial Statements
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CITY OF YREKA
Balance Sheet
Governmental Funds
June 30, 2025
Streets Special Special
General and Roads Revenue Grants Totals
ASSETS
Cash and investments $ 10,735,082 $ 2,156,914 $ 1,939,916 $ 3,061,908 $ 17,893,820 Receivables:

Accounts 219,417 - 50,080 392 269,889
Intergovernmental 58,356 117,130 - 1,242,898 1,418,384
Interest 128,885 24,065 20,990 4,042 177,982
Taxes 1,600,994 46,189 - - 1,647,183
Restricted cash and investments 648,310 - - - 648,310
Loans receivable, net - - - 68,136 68,136
Total Assets $ 13,391,044 $ 2,344,298 $ 2,010,986 $ 4,377,376 $ 22,123,704

LIABILITIES
Accounts payable $ 336,603 $ 63,421 $ 23,369 $ 91,375 $ 514,768 Salaries and benefits payable 270,706 - - - 270,706
Retention payable - - - 32,656 32,656
Interest payable 22,094 - - - 22,094
Deposits payable 60,226 - - - 60,226
Unearned revenue 27,572 - - 50,730 78,302
Total Liabilities 717,201 63,421 23,369 174,761 978,752

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 75,530 - 1,039,182 1,114,712
Total Deferred Inflows of Resources - 75,530 - 1,039,182 1,114,712

FUND BALANCES
Nonspendable - - - 68,136 68,136
Restricted 1,166,522 2,205,347 1,987,617 785,501 6,144,987 Assigned 1,939,333 - - 2,309,796 4,249,129
Unassigned 9,567,988 - - - 9,567,988
Total Fund Balances 12,673,843 2,205,347 1,987,617 3,163,433 20,030,240 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $ 13,391,044 $ 2,344,298 $ 2,010,986 $ 4,377,376 $ 22,123,704 The notes to the basic financial statements are an integral part of this statement. -27-
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CITY OF YREKA
Reconciliation of the Governmental Funds Balance
Sheet to the Government-Wide Statement of
Net Position - Governmental Activities
June 30, 2025
Total Fund Balances - Total Governmental Funds $ 20,030,240 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. 24,523,330
Other long-term assets are not available to pay for current period expenditures and therefore are reported as unavailable revenue in the governmental funds. 1,114,712 Deferred outflows of resources related to pension and OPEB are not reported in the governmental funds. 3,653,846 Deferred inflows of resources related to pension and OPEB are not reported in the governmental funds. (1,804,725) Certain liabilities are not due and payable in the current period and therefore are not reported in the governmental funds.

Compensated absences (753,363)
Loans payable (998,336)
Certificates of participation (2,487,000)
Finance purchases (90,725)
Net pension liability (8,912,458)
Net OPEB asset 9,582
Net Position of Governmental Activities $ 34,285,103
The notes to the basic financial statements are an integral part of this statement. -28-
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CITY OF YREKA
Statement of Revenues, Expenditures and
Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2025
Streets Special Special
General and Roads Revenue Grants Totals

REVENUES
Taxes and assessments $ 9,214,281 $ - $ 346,935 $ - $ 9,561,216 Licenses and permits 295,091 - 346,529 - 641,620
Fines and forfeitures 9,762 19,042 - - 28,804
Use of money 614,799 83,844 57,616 14,748 771,007
Intergovernmental revenue 1,420,020 750,461 - 649,613 2,820,094 Charges for services 62,743 - 243,842 - 306,585
Other revenues 197,763 11,743 30 - 209,536
Total Revenues 11,814,459 865,090 994,952 664,361 14,338,862

EXPENDITURES
Current:

General government 2,050,493 - 41,603 - 2,092,096
Public safety 5,912,943 - 132,578 46,263 6,091,784
Public ways and facilities 78,575 1,095,729 - - 1,174,304 Culture and recreation 909,413 - - - 909,413
Community development 798,272 - - 441,103 1,239,375
Debt service:

Principal 55,192 - 203,026 - 258,218
Interest and other charges 88,051 - 62,701 - 150,752
Capital outlay 175,344 388,526 - 1,740,907 2,304,777
Total Expenditures 10,068,283 1,484,255 439,908 2,228,273 14,220,719 Excess of Revenues Over (Under)
Expenditures 1,746,176 (619,165) 555,044 (1,563,912) 118,143

OTHER FINANCING SOURCES (USES)
Proceeds from sale of assets 228,612 44,000 - - 272,612 Subscription and lease proceeds 17,192 - - - 17,192
Transfers in 569,435 848,246 - 1,839,340 3,257,021
Transfers out (2,490,318) - (258,643) - (2,748,961)
Total Other Financing Sources (Uses) (1,675,079) 892,246 (258,643) 1,839,340 797,864 Net Change in Fund Balances 71,097 273,081 296,401 275,428 916,007 Fund Balances - Beginning 12,602,746 1,932,266 1,691,216 2,888,005 19,114,233 Fund Balances - Ending $ 12,673,843 $ 2,205,347 $ 1,987,617 $ 3,163,433 $ 20,030,240 The notes to the basic financial statements are an integral part of this statement. -29-
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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, 2025
Net Change in Fund Balances - Total Governmental Funds $ 916,007 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 2,304,777
Less current year depreciation (1,135,834)
Governmental funds only report the disposal of assets to the extent proceeds are received from the sale.

In the Statement of Activities, a gain or loss is reported for each disposal. This is the net cost of capital assets disposed. Proceeds from the sale of capital assets is $272,612. (138,045) 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 258,218
Proceeds related to subscription-based information technology arrangements (17,192) 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 465,991
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 (1,181,741) Changes in deferred outflows of resources related to OPEB (64,095) Changes in deferred inflows of resources related to pension 980,624 Changes in deferred inflows of resources related to OPEB (132,114) 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 50,775
Change in net pension liability 181,287
Change in net OPEB liability/asset 199,079
Change in Net Position of Governmental Activities $ 2,687,737 The notes to the basic financial statements are an integral part of this statement. -30-
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CITY OF YREKA
Statement of Net Position
Proprietary Funds
June 30, 2025
Business-Type Activities - Enterprise Funds
Sewer Water Totals
ASSETS
Current Assets:

Cash and investments $ 4,633,060 $ 8,307,674 $ 12,940,734 Receivables:

Accounts 316,404 440,251 756,655
Intergovernmental 2,847,194 411,812 3,259,006
Interest 55,244 91,231 146,475
Total Current Assets 7,851,902 9,250,968 17,102,870
Noncurrent Assets:

Restricted cash and investments 610,000 300,000 910,000 Net OPEB asset 2,782 3,091 5,873
Capital assets:

Non-depreciable 9,377,072 5,548,004 14,925,076
Depreciable, net 15,298,412 17,181,114 32,479,526
Total capital assets 24,675,484 22,729,118 47,404,602
Total Noncurrent Assets 25,288,266 23,032,209 48,320,475 Total Assets 33,140,168 32,283,177 65,423,345

DEFERRED OUTFLOWS OF RESOURCES
Deferred pension adjustments 527,530 635,638 1,163,168
Deferred OPEB adjustments 86,748 96,387 183,135
Total Deferred Outflows of Resources 614,278 732,025 1,346,303

LIABILITIES
Current Liabilities:

Accounts payable 56,810 128,297 185,107
Interest payable 57,585 57,983 115,568
Compensated absences 78,069 92,232 170,301
Certificates of participation 196,000 148,000 344,000
Financed purchases - 35,801 35,801
Total Current Liabilities 388,464 462,313 850,777
The notes to the basic financial statements are an integral part of this statement. -31-
Continued (Page 1 of 2)
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CITY OF YREKA
Statement of Net Position
Proprietary Funds
June 30, 2025
Business-Type Activities - Enterprise Funds
Sewer Water Totals
Noncurrent Liabilities:

Certificates of participation 9,261,000 5,006,000 14,267,000 Net pension liability 1,479,929 1,783,214 3,263,143
Total Noncurrent Liabilities 10,740,929 6,789,214 17,530,143 Total Liabilities 11,129,393 7,251,527 18,380,920

DEFERRED INFLOWS OF RESOURCES
Deferred pension adjustments 164,444 198,145 362,589
Deferred OPEB adjustments 93,356 103,728 197,084
Total Deferred Inflows of Resources 257,800 301,873 559,673

NET POSITION
Net investment in capital assets 15,218,484 17,539,317 32,757,801 Restricted for debt service 610,000 300,000 910,000
Unrestricted 6,538,769 7,622,485 14,161,254
Total Net Position $ 22,367,253 $ 25,461,802 $ 47,829,055 The notes to the basic financial statements are an integral part of this statement. -32-
Continued (Page 2 of 2)
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CITY OF YREKA
Statement of Revenues, Expenses and
Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2025
Business-Type Activities - Enterprise Funds
Sewer Water Totals

OPERATING REVENUES
Charges for services $ 3,264,378 $ 3,509,149 $ 6,773,527 Other revenues 3,113 3,519 6,632
Total Operating Revenues 3,267,491 3,512,668 6,780,159

OPERATING EXPENSES
Engineering 170,923 - 170,923
Power and water 324,126 368,527 692,653
Treatment 1,127,897 1,417,226 2,545,123
Sewer collection 283,530 - 283,530
Water distribution - 788,869 788,869
Administration and billing 526,658 456,223 982,881
Depreciation 628,986 604,551 1,233,537
Total Operating Expenses 3,062,120 3,635,396 6,697,516
Operating Income (Loss) 205,371 (122,728) 82,643

NON-OPERATING REVENUES (EXPENSES)
Intergovernmental revenue 2,847,191 442,690 3,289,881
Interest income 185,425 346,059 531,484
Gain (loss) on sale of capital assets 753 - 753
Interest expense (208,616) (117,318) (325,934)
Total Non-Operating Revenues (Expenses) 2,824,753 671,431 3,496,184 Income (Loss) Before Transfers 3,030,124 548,703 3,578,827 Transfers out (231,351) (276,709) (508,060)
Change in Net Position 2,798,773 271,994 3,070,767
Fund Balances - Beginning 19,629,713 25,234,862 44,864,575 Change in accounting principle (61,233) (45,054) (106,287) Fund Balances - Beginning, Restated 19,568,480 25,189,808 44,758,288 Fund Balances - Ending $ 22,367,253 $ 25,461,802 $ 47,829,055 The notes to the basic financial statements are an integral part of this statement. -33-
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CITY OF YREKA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Business-Type Activities - Enterprise Funds
Sewer Water Totals

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $ 3,235,541 $ 3,470,332 $ 6,705,873 Payments to suppliers (3,075,620) (3,077,835) (6,153,455) Payments to employees (18,504) (39,474) (57,978)
Net Cash Provided (Used) by Operating Activities 141,417 353,023 494,440

CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Intergovernmental revenues received 5,655,349 4,832,001 10,487,350 Transfers to other funds (231,351) (276,709) (508,060)
Net Cash Provided (Used) by Non-Capital
Financing Activities 5,423,998 4,555,292 9,979,290

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition of capital assets (2,924,773) (622,460) (3,547,233) Principal paid on debt (191,000) (229,899) (420,899)
Interest paid on debt (209,854) (118,949) (328,803)
Net Cash Provided (Used) by Capital and
Related Financing Activities (3,325,627) (971,308) (4,296,935)

CASH FLOWS FROM INVESTING ACTIVITIES
Interest on investments 168,504 301,364 469,868
Net Cash Provided (Used) by Investing Activities 168,504 301,364 469,868 Net Increase (Decrease) in Cash and Cash Equivalents 2,408,292 4,238,371 6,646,663 Balances - Beginning 2,834,768 4,369,303 7,204,071
.

Balances - Ending $ 5,243,060 $ 8,607,674 $ 13,850,734
The notes to the basic financial statements are an integral part of this statement. -34-
Continued (Page 1 of 2)
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CITY OF YREKA
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2025
Business-Type Activities - Enterprise Funds
Sewer Water Totals

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH PROVIDED (USED) BY OPERATING

ACTIVITIES
Operating income (loss) $ 205,371 $ (122,728) $ 82,643
Adjustments to reconcile operating income to net cash
provided (used) by operating activities:

Depreciation 628,986 604,551 1,233,537
Decrease (increase) in:

Accounts receivable (31,950) (42,336) (74,286)
Deferred outflows - pension adjustments 186,978 228,734 415,712 Deferred outflows - OPEB adjustments 27,006 23,354 50,360 Increase (decrease) in:

Accounts payable (642,486) (46,990) (689,476)
Compensated absences 3,659 (7,695) (4,036)
Net pension liability (67,682) (89,000) (156,682)
Net OPEB liability/asset (61,806) (65,222) (127,028)
Deferred inflows - pension adjustments (140,285) 40,854 (99,431) Deferred inflows - OPEB adjustments 33,626 (170,499) (136,873) Net Cash Provided (Used) by Operating Activities $ 141,417 $ 353,023 $ 494,440 The notes to the basic financial statements are an integral part of this statement. -35-
Continued (Page 2 of 2)
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CITY OF YREKA
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
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-
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CITY OF YREKA
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
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-
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Basic Financial Statements
• Notes to Basic Financial Statements
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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-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.

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

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

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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-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 $648,310.

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 $68,136 was recorded as loans receivable at June 30, 2025. Of this amount, $68,136 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.

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

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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-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 accordance with GASB Statement No. 101, Compensated Absences, leave is recognized when it is attributable to services already rendered, the leave accumulates, and the leave is more likely that not to be used for time off or otherwise paid in cash or settled through noncash means. Management evaluates sick leave for other District employees to determine the amount that is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. 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.

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, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023, to June 30, 2024
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.

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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-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, 2024
Measurement Date June 30, 2024
Measurement Period June 30, 2023, to June 30, 2024
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. 101, Compensated Absences. The objective of this statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.

Statement No. 102, Certain Risk Disclosures. The objective of this statement is to provide users of government financial statements with essential information about its risks related to a government’s vulnerabilities due to certain concentrations or constraints.

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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-45-
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) S. Future Accounting Pronouncements
The following GASB Statements will be implemented, if applicable, in future financial statements:

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, 2025, the City recorded an additional expenditure for sick leave due to the implementation of GASB No. 101, Compensated Absences, which was not previously reported in the financial statements resulting in an understatement of prior year expenditures of $643,926. The effect of implementing GASB No. 101 is shown in the table below.

During the fiscal year 2025, a change in accounting principle 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, 2024, as previously reported $ 32,135,005 $ 44,865,328 Change in accounting principle – GASB No. 101 ( 537,639) ( 106,287) Net Position, July 1, 2024, as restated $ 31,597,366 $ 44,759,041 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, 2024, as previously reported $ 19,629,713 $ 25,234,862 Adjustment associated with:

Change in accounting principle – GASB No. 101 ( 61,233) ( 45,054) Total Adjustments ( 61,233) ( 45,054)
Fund Balance, July 1, 2024, as restated $ 19,568,480 $ 25,189,808 Yreka City Council Agenda
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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-46-
NOTE 3: CASH AND INVESTMENTS
A. Financial Statement Presentation
As of June 30, 2025, the City’s cash and investments are reported in the financial statements as follows:

Governmental activities $ 18,542,130
Business-type activities 13,850,734
Fiduciary funds 3,717
Total Cash and Investments $ 32,396,581
As of June 30, 2025, the City’s cash and investments consisted of the following:

Cash:

Cash on hand $ 1,200
Deposits (less outstanding checks) 2,630,516
Total Cash 2,631,716
Investments:

In City’s pool 29,764,865
Total Investments 29,764,865
Total Cash and Investments $ 32,396,581
B. Cash
At year end, the carrying amount of the City’s cash deposits (including amounts in checking accounts) was $2,630,516 and the bank balance was $2,759,597. The difference between the bank balance and the carrying amount represents outstanding checks and deposits in transit. In addition, the City had cash on hand of $1,200.

Custodial Credit Risk for Deposits - Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or collateral securities that are in the possession of an outside party. The City’s investment policy requires that deposits in banks must meet the requirements of the California Government Code. Under this code, deposits of more than $250,000 must be collateralized at 105 percent to 150 percent of the value of the deposit to guarantee the safety of the public funds. The first $250,000 of the City’s deposits are insured by the Federal Deposit Insurance Corporation (FDIC). Deposits of more than the $250,000 insured amount are collateralized.

C. Investments
The City has an investment policy, the purpose of which is to establish guidelines for prudent investment of the City’s funds and outline the policies for maximizing the efficiency of the City’s cash management program. The ultimate goal is to enhance the economic status of the City while protecting its pooled investments.

The investment policy provides the basis for the management of a prudent, conservative investment program. Funds are invested to provide the maximum security of principal with secondary emphasis on achieving the highest return, while meeting daily cash flow needs. All investments are made in accordance with the Government Code and, in general, the investment policy is more restrictive than state law.

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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-47-
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
C. Investments (Continued)
Under the provisions of the City’s investment policy the City may invest or deposit in the following:

U.S. Treasury Obligations
U.S. Government Agency Securities and Instrumentalities of Government Sponsored Corporations Bankers’ Acceptances
Commercial Paper
Repurchase Agreements
Time Deposits and Certificates of Deposit
Negotiable Certificates of Deposit
State of California Local Agency Investment Fund (LAIF) Fair Value of Investments - The City measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a threetiered fair value hierarchy as follows:

Level 1: Quoted prices for identical investments in active markets; Level 2: Observable inputs other than quoted market prices; and, Level 3: Unobservable inputs
The City’s position in external investment pools is in itself regarded as a type of investment and looking through to the underlying investments of the pool is not appropriate. Therefore, the City’s investments in external investment pools are not recognized in the three-tiered fair value hierarchy described above.

At June 30, 2025, 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 $ 3,434,393 $ 3,434,393 $ - $ - Total Investments Measured at Fair Value 3,434,393 $ 3,434,393 $ - $ - Investments in External Investment Pool
LAIF 26,330,472
Total Investments $ 29,764,865
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.

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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-48-
NOTE 3: CASH AND INVESTMENTS (CONTINUED)
C. Investments (Continued)
As of June 30, 2025, 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% $ 973,260 $ 2,461,133 $ 3,434,393 1.87 LAIF Variable 26,330,472 - 26,330,472 -
Total Investments $ 27,303,732 $ 2,461,133 $ 29,764,865 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 11.54%
LAIF N/A NR NR 88.46%
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, 2025, did not exceed 5 percent.

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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-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, 2025, the City’s investment in LAIF valued at amortized cost was $26,330,472 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 $178.1 billion. Of that amount, 96.19 percent is invested in non-derivative financial products and 3.81 percent in structured notes and asset-backed securities.

NOTE 4: CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2025, was as follows:

Balance Adjustments/ Balance
July 1, 2024 Additions Retirements June 30, 2025
Governmental Activities
Capital Assets, Not Being Depreciated
Land $ 2,204,965 $ - $ - $ 2,204,965
Construction in progress 2,790,543 1,891,423 ( 434,637) 4,247,329 Total Capital Assets, Not Being Depreciated 4,995,508 1,891,423 ( 434,637) 6,452,294 Capital Assets, Being Depreciated
Buildings and structures 11,764,744 - - 11,764,744
Machinery and equipment 6,999,444 396,162 595,345 7,990,951 Subscription-based information technology
arrangements 22,011 17,192 - 39,203
Infrastructure 34,131,267 - ( 527,368) 33,603,899
Total Capital Assets, Being Depreciated 52,917,466 413,354 67,977 53,398,797 Less Accumulated Depreciation For:

Buildings and structures ( 4,984,697) ( 275,026) - ( 5,259,725) Machinery and equipment ( 4,039,797) ( 374,906) 228,615 ( 4,186,088) Subscription-based information technology
arrangements ( 8,886) ( 11,620) - ( 20,506)
Infrastructure ( 25,387,162) ( 474,282) - ( 25,861,442) Total Accumulated Depreciation ( 34,420,542) ( 1,135,834) 228,615 ( 35,327,761) Total Capital Assets, Being Depreciated, Net 18,496,924 ( 722,480) 296,592 18,071,036 Governmental Activities Capital Assets, Net $ 23,492,432 $ 1,168,943 ($ 138,045) $ 24,523,330 Yreka City Council Agenda
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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-50-
NOTE 4: CAPITAL ASSETS (CONTINUED)
Balance Balance
July 1, 2024 Additions Transfers June 30, 2025
Business-Type Activities
Capital Assets, Not Being Depreciated
Land $ 374,428 $ - $ - $ 374,428
Construction in progress 17,298,101 3,046,471 ( 5,793,925) 14,550,647 Total Capital Assets, Not Being Depreciated 17,672,529 3,046,471 ( 5,793,925) 14,925,076 Capital Assets, Being Depreciated
Building and structures 12,493,673 - - 12,493,672
Machinery and equipment 9,241,469 263,451 - 9,504,921
Infrastructure 35,845,326 - 5,793,925 41,639,251
Total Capital Assets, Being Depreciated 57,580,468 263,451 5,793,925 63,637,844 Less Accumulated Depreciation For:

Building and structures ( 6,333,146) ( 285,553) - ( 6,618,699) Machinery and equipment ( 6,092,382) ( 316,851) - ( 6,409,233) Infrastructure ( 17,499,254) ( 631,133) - ( 18,130,387) Total Accumulated Depreciation ( 29,924,782) ( 1,233,537) - ( 31,158,319) Total Capital Assets, Being Depreciated, Net 27,655,686 ( 970,086) 5,793,925 32,479,526 Business-Type Activities Capital Assets, Net $ 45,328,215 $ 2,076,385 $ - $ 47,404,602 Depreciation
Depreciation expense was charged to governmental activities as follows:

General government $ 152,457
Public safety 333,626
Public ways and facilities 496,403
Culture and recreation 153,348
Total Depreciation Expense – Governmental Activities $ 1,135,834 Depreciation expense was charged to the business-type activities as follows:

Sewer $ 628,986
Water 604,551
Total Depreciation Expense – Business-Type Activities $ 1,233,537 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.

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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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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, 2025:

Transfers In Transfers Out
General Fund $ 569,435 ($ 2,490,318)
Streets and Roads 848,246 -
Special Revenue - ( 258,643)
Special Grants 1,839,340 -
Sewer - ( 231,351)
Water - ( 276,709)
Total $ 3,257,021 ($ 3,257,021)
NOTE 6: UNEARNED REVENUES
At June 30, 2025, the components of unearned revenue were as follows:

Unearned
General Fund
Juniper Street Park Restoration Project funding $ 22,659 Immaterial 4,913
Subtotal 27,572
Special Grants
Funds received in advance 50,730
Total $ 78,302
NOTE 7: LONG-TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the year ended June 30, 2025:

Amounts
Balance Additions/ Balance Due Within
Type of Indebtedness July 1, 2024 Adjustments Retirements June 30, 2025 One Year Governmental Activities
Compensated absences $ 266,499 $ 537,639 ($ 50,775) $ 753,363 $ 753,364 Loans from direct borrowings 1,113,293 - ( 114,957) 998,336 121,156 Certificates of participation 2,525,000 - ( 38,000) 2,487,000 39,000 Financed purchases 178,794 - ( 88,069) 90,725 90,726
Subscription-based information
technology arrangements - 17,192 ( 17,192) - -
Total Governmental Activities $ 4,083,586 $ 554,831 ($ 308,993) $ 4,329,424 $ 1,004,246 Business-Type Activities
Compensated absences $ 68,051 $ 106,287 ($ 4,037) $ 170,301 $ 170,301 Certificates of participation 14,947,000 - ( 336,000) 14,611,000 344,000 Financed purchases 120,700 - ( 84,899) 35,801 35,801
Total Business-Type Activities $ 15,135,751 $ 106,287 ($ 424,936) $ 14,817,102 $ 550,102 Yreka City Council Agenda
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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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NOTE 7: LONG-TERM LIABILITIES (CONTINUED)
Compensated absences are generally liquidated by the fund where the accrued liability occurred. Individual issues of debt payable outstanding at June 30, 2025, 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. $ 998,336 Total Loans from Direct Borrowings 998,336
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. 2,487,000 Total Certificates of Participation 2,487,000
Total Governmental Activities $ 3,485,337
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. $ 4,096,000
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. 5,154,000 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. 5,361,000 Total Certificates of Participation 14,611,000
Total Business-Type Activities $ 14,611,000
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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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NOTE 7: LONG-TERM LIABILITIES (CONTINUED)
Following is a schedule of debt payment requirements to maturity for long-term debt, excluding compensated absences that have indefinite maturities and leases which are reported in Note 8.

Governmental Activities
Loans from Direct Borrowings
Year Ended
June 30 Principal Interest Total
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 149,485 25,515 175,000
2031-2032 323,592 26,408 350,000
Total $ 998,336 $ 226,664 $ 1,225,000

Certificates of Participation
Year Ended
June 30 Principal Interest Total
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 45,000 81,235 126,235
2031-2035 250,000 381,360 631,360
2036-2040 295,000 334,600 629,600
2041-2045 352,000 279,090 631,090
2046-2050 418,000 213,010 631,010
2051-2055 497,000 134,540 631,540
2056-2059 464,000 41,300 505,300
Total $ 2,487,000 $ 1,804,880 $ 4,291,880
Business-Type Activities
Certificates of Participation
Year Ended
June 30 Principal Interest Totals
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 376,000 286,311 662,311
2031-2035 2,009,000 1,299,311 3,308,311
2036-2040 2,246,000 1,059,694 3,305,694
2041-2045 2,511,000 790,947 3,301,947
2046-2050 2,809,000 489,407 3,298,407
2051-2055 1,801,000 204,210 2,005,210
2056-2060 875,000 88,071 963,071
2061-2063 563,000 14,886 577,886
Total $ 14,611,000 $ 5,459,643 $ 20,070,643
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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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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, 2025
Governmental activities 1.40% $ 90,725
Business-type activities 1.64% 35,801
Total $ 126,526
Equipment and related accumulated depreciation under financed purchases are as follows:

Governmental Business-Type
Activities Activities
Equipment $ 437,652 $ 413,780
Less: accumulated depreciation ( 87,531) ( 82,757)
Net Value $ 350,121 $ 331,023
As of June 30, 2025, annual amortization is as follows:

Year Ended Governmental Business-Type
June 30 Activities Activities
2026 $ 90,727 $ 35,938
Total Requirements 90,727 35,938
Less: interest ( 2) ( 137)
Present Value of Remaining Payments $ 90,725 $ 35,801
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, 2025, the City’s subscription liability was $0. The City made a payment in full in April 2024. The lease has an interest rate of 3.67%.

The value of the right-to-use asset and accumulated amortization as of June 30, 2025, were $17,192 and $4,182, respectively.

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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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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.

Net Position Restricted by Enabling Legislation
The government-wide Statement of Net Position reports $10,361,354 of restricted net position, of which $8,484,178 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.

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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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NOTE 10: FUND BALANCES (CONTINUED)
• 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, 2025, were distributed as follows:

Streets and Special Special
General Roads Revenue Grants Totals
Nonspendable:

Loans Receivable $ - $ - $ - $ 68,136 $ 68,136
Subtotal - - - 68,136 68,136
Restricted for:

Community Services 31,349 - - - 31,349
Capital Improvements 452,910 - - - 452,910
Streets and Sidewalks - 2,205,347 - - 2,205,347
Fire Protection - - 1,475,338 - 1,475,338
Debt Servicing 682,263 - 512,279 - 1,194,542
Revolving Loans - - - 341,725 341,725
Public Safety - - - 443,776 443,776
Subtotal 1,166,522 2,205,347 1,987,617 785,501 6,144,987 Assigned for:

Capital Improvements 612,787 - - 2,309,796 2,922,583
Grant Contingencies 1,326,546 - - - 1,326,546
Subtotal 1,939,333 - - 2,309,796 4,249,129
Unassigned 9,567,988 - - - 9,567,988
Total $ 12,673,843 $ 2,205,347 $ 1,987,617 $ 3,163,433 $ 20,030,240 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.

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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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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.

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, 2025, 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%
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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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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 20.090% 9.000% 0.000%
Safety PEPRA – Police 13.760% 13.750% 0.000%
Safety PEPRA – Fire 13.760% 13.750% 0.000%
For the year ended June 30, 2025, the contributions recognized as part of pension expense were as follows:

Contributions-Employee
Contributions-Employer (Paid by Employer)
Miscellaneous $ 894,168 $ -
Safety 689,795 -
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, 2024, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023, rolled forward to June 30, 2024, using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for the Plan as of June 30, 2024, and 2025, was as follows:

Proportion Proportion Change-
June 30, 2024 June 30, 2025 Increase (Decrease)
Miscellaneous .14771% .14972% .00201%
Safety .06860% .06768% ( .00092%)
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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
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NOTE 11: PENSION PLAN (CONTINUED)
B. Pension Liability, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pension (Continued)
As of June 30, 2025, 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 $ 7,240,992
Safety 4,934,609
Total Net Pension Liability $ 12,175,601
For the year ended June 30, 2025, the City recognized pension expense of $1,942,179. At June 30, 2025, 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 $ 1,900,843 $ - Changes in assumptions 307,686 -
Difference between expected and actual experience 1,028,757 ( 37,521) Difference between projected and actual earnings on
pension plan investments 655,368 -
Difference between City contributions and proportionate share of contributions 290,044 ( 1,710,017)
Adjustment due to differences in proportions 393,680 ( 156,381) Total $ 4,576,378 ($ 1,903,919)
$1,900,843 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, 2026. 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
2026 ($ 91,986)
2027 1,066,861
2028 21,201
2029 ( 224,460)
Thereafter -
Total $ 771,616
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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-60-
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, 2023, actuarial valuation was determined using the following actuarial assumptions:

Valuation Date June 30, 2023
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
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.

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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-61-
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 $ 10,711,419 $ 7,240,992 $ 4,384,318
Safety 7,450,792 4,934,609 3,227,778
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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-62-
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 $157 per month in 2024 and increased to $158 per month in 2025.

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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-63-
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, 2025, the City’s cash contributions were $99,550 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, 2025, the following employees were covered by the benefit terms:

Active employees waiving coverage 23
Inactive employees or beneficiaries currently receiving benefit payments 47 Active employees 16
Total 86
B. Net OPEB Liability/Asset
The City’s net OPEB asset of $15,455, was measured as of June 30, 2024, and was determined by the actuarial valuation as of that date.

Actuarial Assumptions and Other Inputs
The net OPEB asset in the June 30, 2024, 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, 2024
Funding Method Entry Age Normal Cost, level of percent of pay Asset Valuation Method Market value of assets
Discount Rate 6.20%
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 4.00% Demographic actuarial assumptions used in the June 30, 2024, 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.

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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-64-
NOTE 12: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) B. Net OPEB Liability/Asset (Continued)
Discount Rate
The discount rate used to measure the total OPEB liability was 6.20 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(a)
Global Equity 34.0% 3.90% 4.70%
Fixed Income 41.0% 2.70% 2.60%
Global Real Estate (REITs) 17.0% 3.70% 4.00%
Treasury Inflation Protected Securities 5.0% 1.70% 1.40% Commodities 3.0% 2.90% 2.00%
Total 100.0%
(a) An expected inflation of 2.40% used for this period Yreka City Council Agenda
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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-65-
NOTE 12: OTHER POSTEMPLOYMENT BENEFITS (OPEB) (CONTINUED) C. Changes in the Net OPEB Liability/Asset
The table below shows the changes in the total OPEB asset, the Plan Fiduciary Net Position (i.e. Fair value of the Plan assets), and the net OPEB asset during the measurement period ending on June 30, 2024, 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, 2024 $ 1,681,497 $ 1,370,845 $ 310,652 Changes during the period:

Service cost 100,088 - 100,088
Interest cost 97,689 - 97,689
Contributions - employer - 117,076 ( 117,076)
Net investment income - 112,680 ( 112,680)
Benefit payments ( 105,143) ( 105,143) -
Administrative expense - ( 443) 443
Assumption changes ( 111,178) - ( 111,178)
Plan experience ( 183,393) - ( 183,393)
Net Changes ( 201,937) 124,170 ( 326,107)
Balances at Fiscal Year Ending June 30, 2025 $ 1,479,560 $ 1,495,015 ($ 15,455) Sensitivity of the Net OPEB Liability/Asset to Changes in the Discount Rate The following presents the net OPEB asset of the City, as well as what the City’s net OPEB asset would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate:
1% Decrease Discount Rate 1% Increase

5.20% 6.20% 7.20%
Net OPEB Asset $ 173,175 ($ 15,455) ($ 172,883)
Sensitivity of the Net OPEB Liability/Asset to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB asset of the City, as well as what the City’s net OPEB asset would be if it were calculated using healthcare cost trend rates that are 1-percentage point lower or 1-percentage point higher than the current healthcare cost trend rates:

Current Trend Current Trend
-1% Current Trend +1%
Net OPEB Asset ($ 202,354) ($ 15,455) $ 217,484
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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-66-
NOTE 12: 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, 2025, the City recognized an OPEB expense of $94,492. At June 30, 2025, 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 $ 99,550 $ - Change of assumptions 64,029 ( 111,105)
Differences between expected and actual experience 189,224 ( 349,374) Net difference between projected and actual earnings on investments 70,968 - Total $ 423,771 ($ 460,479)
$99,550 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB asset in the year ended June 30, 2026. 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
2026 ($ 27,762)
2027 2,478
2028 ( 41,324)
2029 ( 18,660)
2030 ( 9,392)
Thereafter ( 41,598)
($ 136,258)
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 13: 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.

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CITY OF YREKA
Notes to Basic Financial Statements
For the Year Ended June 30, 2025
-67-
NOTE 13: 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 14: 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, 2025, through February 19, 2026, 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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Required Supplementary Information
(Unaudited)
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CITY OF YREKA
Required Supplementary Information
City Pension Plan
Schedule of Proportionate Share of the Net Pension Liability For the Year Ended June 30, 2025
Last 10 Years
Measurement Date 2014/2015 2015/2016 2016/2017 2017/2018 Miscellaneous
Proportion of the net pension liability 0.11561% 0.12410% 0.12737% 0.13147% Proportionate share of the net pension liability $ 3,171,703 $ 4,311,099 $ 5,021,119 $ 4,954,547 Covered payroll 1,603,577 1,532,020 1,524,699 1,624,634 Proportionate share of the net pension liability
as a percentage of covered payroll 197.79% 281.40% 329.32% 304.96% Plan fiduciary net position as a percentage of the
total pension liability 83.86% 77.23% 75.07% 76.11%
Miscellaneous PEPRA
Proportion of the net pension liability -0.00003% 0.00001% 0.00010% 0.00007% Proportionate share of the net pension liability $ (842) $ 196 $ 3,842 $ 2,578 Covered payroll 106,953 295,758 307,014 483,923
Proportionate share of the net pension liability
as a percentage of covered payroll -0.79% 0.07% 1.25% 0.53% Plan fiduciary net position as a percentage of the
total pension liability 149.81% 98.64% 89.10% 96.12%
Safety
Proportion of the net pension liability 0.04683% 0.05637% 0.05612% 0.05808% Proportionate share of the net pension liability $ 1,929,584 $ 2,919,427 $ 3,353,532 $ 3,407,746 Covered payroll 909,068 890,370 910,448 973,986
Proportionate share of the net pension liability
as a percentage of covered payroll 212.26% 327.89% 368.34% 349.88% Plan fiduciary net position as a percentage of the
total pension liability 82.46% 75.69% 73.76% 73.77%
Safety PEPRA
Proportion of the net pension liability 0.00001% 0.00003% 0.00008% 0.00007% Proportionate share of the net pension liability $ (312) $ 1,562 $ 4,688 $ 4,172 Covered payroll 48,981 104,559 105,369 121,049
Proportionate share of the net pension liability
as a percentage of covered payroll -0.64% 1.49% 4.45% 3.45% Plan fiduciary net position as a percentage of the
total pension liability 103.20% 92.51% 87.68% 93.45%
-68-
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2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024

0.13557% 0.13950% 0.19465% 0.10955% 0.14606% 0.14788%
$ 5,428,694 $ 5,884,112 $ 3,696,100 $ 6,910,295 $ 7,303,484 $ 7,152,122 1,605,006 1,618,342 1,576,614 1,278,644 1,321,114 1,342,985 338.24% 363.59% 234.43% 540.44% 552.83% 532.55%

74.43% 73.18% 83.48% 70.59% 69.73% 70.94%

0.00021% 0.00044% -0.00150% 0.00279% 0.00165% 0.00184%
$ 8,467 $ 18,706 $ (28,531) $ 36,532 $ 82,731 $ 88,870
620,488 746,534 861,936 1,337,805 1,622,282 1,930,650

1.36% 2.51% -3.31% 2.73% 5.10% 4.60%

93.89% 92.28% 107.72% 93.90% 89.68% 91.96%

0.05929% 0.06109% 0.07267% 0.05698% 0.06779% 0.06734%
$ 3,701,061 $ 4,069,838 $ 2,550,230 $ 4,738,160 $ 5,066,911 $ 4,909,603 889,848 938,030 913,940 661,355 698,271 694,421
415.92% 433.87% 279.04% 716.43% 725.64% 707.01%

73.31% 72.49% 83.01% 70.38% 69.40% 71.21%

0.00012% 0.00019% -0.00011% 0.00900% 0.00081% 0.00034%
$ 7,299 $ 12,794 $ (3,747) $ 2,314,802 $ 60,444 $ 25,006 177,102 186,154 219,378 364,320 568,485 650,642

4.12% 6.87% -1.71% 635.38% 10.63% 3.84%

92.59% 91.40% 102.62% 8.39% 84.08% 96.37%
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CITY OF YREKA
Required Supplementary Information
City Pension Plan
Schedule of Contributions
For the Year Ended June 30, 2025
Last 10 Years
Fiscal Year 2015/2016 2016/2017 2017/2018 2018/2019
Miscellaneous
Contractually required contributions (actuarially determined) $ 171,267 $ 222,568 $ 331,273 $ 394,947 Contributions in relation to the actuarially determined contributions (171,267) (222,568) (331,273) (394,947)
Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 1,532,020 $ 1,524,699 $ 1,624,634 $ 1,605,006 Contributions as a percentage of covered payroll 11.18% 14.60% 20.39% 24.61% Miscellaneous PEPRA
Contractually required contributions (actuarially determined) $ 6,596 $ 6,505 $ 32,068 $ 43,599 Contributions in relation to the actuarially determined contributions (6,596) (6,505) (32,068) (43,599)
Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 295,758 $ 307,014 $ 483,923 $ 620,488 Contributions as a percentage of covered payroll 2.23% 2.12% 6.63% 7.03% Safety
Contractually required contributions (actuarially determined) $ 182,568 $ 253,942 $ 283,769 $ 316,062 Contributions in relation to the actuarially determined contributions (182,568) (253,942) (283,769) (316,062)
Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 890,370 $ 910,448 $ 973,986 $ 889,848 Contributions as a percentage of covered payroll 20.50% 27.89% 29.13% 35.52% Safety PEPRA
Contractually required contributions (actuarially determined) $ 5,633 $ 9,567 $ 14,657 $ 22,867 Contributions in relation to the actuarially determined contributions (5,633) (9,567) (14,657) (22,867)
Contribution deficiency (excess) $ - $ - $ - $ -
Covered payroll $ 104,559 $ 105,369 $ 121,049 $ 177,102 Contributions as a percentage of covered payroll 5.39% 9.08% 12.11% 12.91% -69-
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2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 $ 470,384 $ 525,137 $ 558,963 $ 622,309 $ 746,340 $ 914,315 (470,384) (525,137) (558,963) (622,309) (746,340) (914,315) $ - $ - $ - $ - $ - $ -
$ 1,618,342 $ 1,576,614 $ 1,278,644 $ 1,321,114 $ 1,342,985 $ 1,207,247

29.07% 33.31% 43.72% 47.10% 55.57% 75.74%
$ 55,191 $ 68,563 $ 105,965 $ 118,227 $ 147,828 $ 186,474 (55,191) (68,563) (105,965) (118,227) (147,828) (186,474) $ - $ - $ - $ - $ - $ -
$ 746,534 $ 861,936 $ 1,337,805 $ 1,622,282 $ 1,930,650 $ 2,213,423

7.39% 7.95% 7.92% 7.29% 7.66% 8.42%
$ 375,035 $ 394,723 $ 419,336 $ 464,812 $ 583,932 $ 678,177 (375,035) (394,723) (419,336) (464,812) (583,932) (678,177) $ - $ - $ - $ - $ - $ -
$ 938,030 $ 913,940 $ 661,355 $ 698,271 $ 694,421 $ 715,693

39.98% 43.19% 63.41% 66.57% 84.09% 94.76%
$ 25,888 $ 31,770 $ 50,317 $ 72,524 $ 105,863 $ 121,877 (25,888) (31,770) (50,317) (72,524) (105,863) (121,877) $ - $ - $ - $ - $ - $ -
$ 186,154 $ 219,378 $ 364,320 $ 568,485 $ 650,642 $ 741,040

13.91% 14.48% 13.81% 12.76% 16.27% 16.45%
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CITY OF YREKA
Required Supplementary Information
City Pension Plan
Notes to City Pension Plan
For the Year Ended June 30, 2025
-70-
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, 2022
Actuarial cost method Entry Age Actuarial Cost method
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 Market Value of Assets
Discount rate 6.80%
Payroll Growth 2.80%
Inflation 2.30%
Salary increases Varies based on entry age and service
Investment Rate of Return 6.80%
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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, 2025
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 (asset) 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 (asset) 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 eight years are shown. -71-
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2020/2021 2021/2022 2022/2023 2023/2024
$ 52,289 $ 53,858 $ 97,173 $ 100,088
69,392 73,555 91,411 97,689
- 268,955 - (183,393)
- 90,708 - (111,178)
(67,217) (50,174) (55,611) (105,143)
54,464 436,902 132,973 (201,937)
1,057,158 1,111,622 1,548,524 1,681,497
$ 1,111,622 $ 1,548,524 $ 1,681,497 $ 1,479,560
$ 193,368 $ 96,438 $ 77,026 $ 117,076
225,750 (187,520) 47,086 112,680
(67,217) (50,174) (55,611) (105,143)
(421) (373) (375) (443)
351,480 (141,629) 68,126 124,170
1,092,868 1,444,348 1,302,719 1,370,845
$ 1,444,348 $ 1,302,719 $ 1,370,845 $ 1,495,015
$ (332,726) $ 245,805 $ 310,652 $ (15,455)
129.93% 84.13% 81.53% 101.04%
$ 3,571,115 $ 3,725,290 $ 4,874,774 $ 5,113,134
-9.32% 6.60% 6.37% -0.30%
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CITY OF YREKA
Required Supplementary Information
City OPEB Plan
Schedule of Contributions
For the Year Ended June 30, 2025
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 eight years are shown. -72-
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2021/2022 2022/2023 2023/2024 2024/2025
$ 56,535 $ 54,681 $ 124,725 $ 128,467
(96,438) (77,026) (117,076) (99,550)
$ (39,903) $ (22,345) $ 7,649 $ 28,917
$ 3,725,290 $ 4,874,774 $ 5,113,134 $ 5,081,593

2.59% 1.58% 2.29% 1.96%
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CITY OF YREKA
Required Supplementary Information
City OPEB Plan
Notes to City OPEB Plan
For the Year Ended June 30, 2025
-73-
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, 2025, 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
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CITY OF YREKA
Required Supplementary Information
Budgetary Comparison Schedule
General Fund
For the Year Ended June 30, 2025
Actual Variance with
Amounts Final Budget
Original Final (Budgetary Positive
Budget Budget Basis) (Negative)

REVENUES
Taxes and assessments $ 8,041,333 $ 9,384,099 $ 9,214,281 $ (169,818) Licenses and permits 260,700 304,200 295,091 (9,109)
Fines and forfeitures 250 9,850 9,762 (88)
Use of money 160,800 220,800 614,799 393,999
Intergovernmental revenue 1,101,616 1,524,080 1,420,020 (104,060) Charges for services 65,150 62,650 62,743 93
Other revenues 604,310 536,892 197,763 (339,129)
Total Revenues 10,234,159 12,042,571 11,814,459 (228,112)

EXPENDITURES
Current:

General government 2,097,474 1,834,483 2,050,493 (216,010) Public safety 5,490,589 6,232,011 5,912,943 319,068
Public ways and facilities 110,381 114,554 78,575 35,979 Culture and recreation 537,936 563,548 909,413 (345,865) Community development 964,305 1,073,573 798,272 275,301 Debt service:

Principal 38,000 38,000 55,192 (17,192)
Interest and other charges 88,375 88,375 88,051 324
Capital outlay 75,000 75,000 175,344 (100,344)
Total Expenditures 9,402,061 10,019,544 10,068,283 (48,739) Excess of Revenues Over (Under) Expenditures 832,098 2,023,027 1,746,176 (276,851)

OTHER FINANCING SOURCES (USES)
Proceeds from sale of assets - - 228,612 228,612
Subscription and lease proceeds - - 17,192 17,192
Transfers in - 305,000 569,435 264,435
Transfers out (785,706) (1,918,077) (2,490,318) (572,241) Total Other Financing Sources (Uses) (785,706) (1,613,077) (1,675,079) (62,002) Net Change in Fund Balances 46,392 409,950 71,097 (338,853) Fund Balances - Beginning 12,602,746 12,602,746 12,602,746 - Fund Balances - Ending $ 12,649,138 $ 13,012,696 $ 12,673,843 $ (338,853) -74-
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CITY OF YREKA
Required Supplementary Information
Budgetary Comparison Schedule
Streets and Roads - Major Special Revenue Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Fines and forfeitures $ 15,000 $ 15,000 $ 19,042 $ 4,042 Use of money 6,500 13,000 83,844 70,844
Intergovernmental revenue 632,900 575,264 750,461 175,197 Other revenues 11,000 11,000 11,743 743
Total Revenues 665,400 614,264 865,090 250,826

EXPENDITURES
Current:

Public ways and facilities 1,361,106 1,372,341 1,095,729 276,612 Capital outlay 90,000 90,000 388,526 (298,526)
Total Expenditures 1,451,106 1,462,341 1,484,255 (21,914) Excess of Revenues Over (Under) Expenditures (785,706) (848,077) (619,165) 228,912

OTHER FINANCING SOURCES (USES)
Proceeds from sale of assets - - 44,000 44,000
Transfers in 785,706 848,077 848,246 169
Total Other Financing Sources (Uses) 785,706 848,077 892,246 44,169 Net Change in Fund Balances - - 273,081 273,081
Fund Balances - Beginning 1,932,266 1,932,266 1,932,266 - Fund Balances - Ending $ 1,932,266 $ 1,932,266 $ 2,205,347 $ 273,081 -75-
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CITY OF YREKA
Required Supplementary Information
Budgetary Comparison Schedule
Special Revenue - Major Special Revenue Fund
For the Year Ended June 30, 2025
Variance with
Final Budget
Original Final Actual Positive
Budget Budget Amounts (Negative)

REVENUES
Taxes and assessments $ 335,000 $ 346,000 $ 346,935 $ 935 Licenses and permits 26,000 366,500 346,529 (19,971)
Use of money 18,000 28,000 57,616 29,616
Charges for services 240,000 241,000 243,842 2,842
Other revenues - - 30 30
Total Revenues 619,000 981,500 994,952 13,452

EXPENDITURES
Current:

General government 65,000 66,000 41,603 24,397
Public safety 15,000 45,000 132,578 (87,578)
Debt service:

Principal 203,720 203,720 203,026 694
Interest and other charges 62,007 62,007 62,701 (694)
Capital outlay - 210,000 - 210,000
Total Expenditures 345,727 586,727 439,908 146,819
Excess of Revenues Over (Under) Expenditures 273,273 394,773 555,044 160,271

OTHER FINANCING SOURCES (USES)
Transfers out (9,500) (24,745) (258,643) (233,898)
Total Other Financing Sources (Uses) (9,500) (24,745) (258,643) (233,898) Net Change in Fund Balances 263,773 370,028 296,401 (73,627) Fund Balances - Beginning 1,691,216 1,691,216 1,691,216 - Fund Balances - Ending $ 1,954,989 $ 2,061,244 $ 1,987,617 $ (73,627) -76-
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CITY OF YREKA
Required Supplementary Information
Notes to Budgetary Comparison Schedules
For the Year Ended June 30, 2025
-77-
NOTE 1: BUDGETARY BASIS OF ACCOUNTING
Formal budgetary integration is employed as a management control device during the year. The City presents a comparison of annual budget to actual results for the General fund and major special revenue funds. The amounts reported on the budgetary basis are generally on a basis consistent with accounting principles generally accepted in the United States of America (GAAP).

The City follows these procedures annually in establishing the budgetary data reflected in the financial statements:
(1) The City Manager submits to the City Council a recommended draft budget for the fiscal year commencing the following July 1. The budget includes recommended expenditures and the means of financing them.
(2) The City Council reviews the recommended budget at regularly scheduled meetings, which are open to the public. The Council also conducts a public hearing on the recommended budget to obtain comments from interested persons.
(3) Prior to July 1, the budget is adopted through the passage of a resolution. (4) From the effective date of the budget, which is adopted and controlled at the department level, the amounts stated therein, as recommended expenditures become appropriations to the various City departments. The City Council may amend the budget by motion during the fiscal year. The City Manager may authorize transfers from one object or purpose to another within the same department.

The City does not use an encumbrance system as an extension of normal budgetary accounting for the General and other governmental funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations.

NOTE 2: EXPENDITURES IN EXCESS OF APPROPRIATIONS
For the fiscal year ended June 30, 2025, the City incurred expenditures in excess of appropriations as follows:

Excess of
Expenditures
Over
Appropriations Expenditures Appropriations
General Fund $ 10,019,544 $ 10,068,283 $ 48,739
Streets and Roads 1,462,341 1,484,255 21,914
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CITY OF YREKA,

CALIFORNIA

SINGLE AUDIT ACT

REPORTS AND SCHEDULES

FOR THE YEAR ENDED
JUNE 30, 2025
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CITY OF YREKA
Single Audit Act
For the Year Ended June 30, 2025
Table of Contents
Page
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards............................................................................1-2 Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance.................................................3-5 Schedule of Expenditures of Federal Awards for the Year Ended June 30, 2025 ........................................ 6 Notes to Schedule of Expenditures of Federal Awards .............................................................................7-8 Schedule of Findings and Questioned Costs............................................................................................9-10 Schedule of Prior Year Findings and Questioned Costs............................................................................. 11 Management’s Corrective Action Plan ....................................................................................................... 12 Yreka City Council Agenda
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CERTIFIED PUBLIC ACCOUNTANTS
-1-
950 THARP ROAD, SUITE 502 YUBA CITY, CA 95993 TEL: (530) 673-9790 FAX: (530) 673-1305 [email protected]

SMITH & NEWELL
INDEPENDENT AUDITOR’S REPORT 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, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated February 19, 2026.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control we consider to be material weaknesses. We identified a certain deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item 2025-001 that we consider to be a significant deficiency.

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-2-
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 Finding
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the finding 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
February 19, 2026
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CERTIFIED PUBLIC ACCOUNTANTS
-3-
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, 2025. The City's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2025.

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

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

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

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-4-
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.

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.

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-5-
To the Honorable Mayor and Members of the City Council
City of Yreka
Yreka, California
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, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements. We issued our report thereon dated February 19, 2026, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Smith & Newell CPAs
Yuba City, California
February 19, 2026
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CITY OF YREKA
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2025
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 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 22-CDBG-ED-30045 - 408,575 Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 21-CDBG-PL-30004 - 17,304 Community Development Block Grants/State's Program
and Non-Entitlement Grants in Hawaii 14.228 Outstanding Loans - 226,994 Subtotal 14.228 - 652,873
Total U.S. Department of Housing and Urban Development - 652,873 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
Total $ - $ 1,102,490
See the accompanying Notes to Schedule of Expenditures of Federal Awards -6-
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CITY OF YREKA
Notes to Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2025
-7-

1. REPORTING ENTITY
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the City of Yreka, California (City). The City’s reporting entity is defined in Note 1 to the City’s basic financial statements. All federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the Schedule of Expenditures of Federal Awards. The information in this Schedule is presented in accordance with the 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). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows of the City.

2. BASIS OF ACCOUNTING
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. The accompanying Schedule of Expenditures of Federal Awards, is presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in the notes to the City financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursements. In addition, the outstanding balance of prior years’ loans that have significant continuing compliance requirements have been included in total federal expenditures.

3. INDIRECT COST RATE
The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

4. RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree or can be reconciled with amounts reported in the related federal financial assistance reports.

5. RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
The amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree or can be reconciled with amounts reported in the City’s basic financial statements.

6. PASS-THROUGH ENTITIES’ IDENTIFYING NUMBER
When federal awards were received from a pass-through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City determined that no identifying number is assigned for the program or the City was unable to obtain an identifying number from the pass-through entity.

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CITY OF YREKA
Notes to Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2025
-8-

7. LOANS WITH CONTINUING COMPLIANCE REQUIREMENTS
The City participates in certain federal award programs that sponsor revolving loan programs, which are administered by the City. These programs require servicing arrangements with the City. The funds are returned to the programs upon repayment of the principal and interest. In accordance with Section 200.510 of the Uniform Guidance, the City has reported the outstanding balance of loans from previous years that have significant continuing compliance requirements as of June 30, 2024, along with the value of total outstanding and new loans made during the current year.

The programs listed below had the following aggregate, federally funded loans outstanding at June 30, 2025:

Assistance Amount Outstanding
Listing
Number Program Title July 1, 2024 June 30, 2025

14.228 Community Development Block Grants/State’s Program and Non-Entitlement Grants in Hawaii $ 226,994 $ 175,620 Total Loans Outstanding $ 226,994 $ 175,620
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CITY OF YREKA
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2025
-9-
SECTION I - SUMMARY OF AUDITOR’S RESULTS
Financial Statements Status

1. Type of auditor’s report issued Unmodified

2. Internal controls over financial reporting:
a. Material weaknesses identified? No
b. Significant deficiencies identified and not considered to be material weaknesses? Yes

3. Noncompliance material to financial statements noted? No Federal Awards

1. Internal control over major programs:
a. Material weaknesses identified? No
b. Significant deficiencies identified and not considered to be material weaknesses? No

2. Type of auditor’s report issued on compliance for major programs: Unmodified

3. Any audit findings disclosed that are required to be reported in accordance with 2 CFR Section 200.516(a)? No

4. Identification of major programs:

21.027 Coronavirus State and Local Fiscal Recovery Funds

5. Dollar threshold used to distinguish between Type A and Type B programs? $750,000

6. Auditee qualified as a low-risk auditee under 2 CFR Section 200.520? Yes

SECTION II - FINANCIAL STATEMENT FINDINGS
Budget 2025-001

SECTION III - FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS None.

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CITY OF YREKA
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2025
-10-
2025-001 Budget (Significant Deficiency)
Criteria
California Government Code requires that appropriate operating budgets be adopted and amended as needed and that expenditures not exceed the approved budget.

Condition
For the year ended June 30, 2025, we noted that the City incurred expenditures in excess of appropriations of $48,739 in the General Fund and $21,914 in the Streets and Roads fund.

Cause
The City did not amend its budget for changes in the estimate of expenditures during the fiscal year.

Effect
Expenditures exceeded appropriations by $48,739 in the General Fund and $21,914 in the Streets and Roads fund.

Questioned Cost
No questioned costs were identified as a result of our procedures.

Context
Not applicable.

Repeat Finding
This is not a repeat finding.

Recommendation
We recommend that the City control and monitor expenditures so that they do not exceed the approved budget. If budget revisions are required, we recommend that the City take appropriate action to amend the budget.

Views of Responsible Officials and Planned Corrective Action Refer to separate Management’s Corrective Action Plan for views of responsible officials and management’s responses.

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CITY OF YREKA, CALIFORNIA
Status of Prior Year Findings and Questioned Costs
And
Corrective Action Plan
For the Year Ended June 30, 2025
Compiled by: Emily Aldrich, Finance Director
City of Yreka
701 Fourth Street • Yreka, CA 96097
(530) 841-2386 • FAX (530) 842-4836
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CITY OF YREKA
Schedule of Prior Year Findings and Questioned Costs
For the Year Ended June 30, 2025
-11-
Audit Reference
2024-001
2024-002
2024-003
Status of Prior Year Audit Recommendations
Community Development Block Grants/State’s Program and NonEntitlement Grants in Hawaii Recommendation
We recommend that the City reconcile federal expenditures claimed to the City’s general ledger and SEFA.

Status
Implemented
Audit Adjustments
Recommendation
We recommend that the City reconcile all accounts and make the necessary adjustments prior to the start of the annual audit.

Status
Implemented
Filing of Project Reimbursement Claims
Recommendation
We recommend that all reimbursement claims for projects be filed timely with the grant agency.

Status
Implemented
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CITY OF YREKA
Management’s Corrective Action Plan
For the Year Ended June 30, 2025
-12-
2025-001 Budget (Significant Deficiency)
We recommend that the City control and monitor expenditures so that they do not exceed the approved budget. If budget revisions are required, we recommend that the City take appropriate action to amend the budget.

Management’s Response: The Finance Department did review the budgetary needs and adjustments were made. Unfortunately, last minute items were not adjusted for.

Responsible Individual: It is the Finance Director's responsibility to ensure that all appropriate budget transfers are accomplished timely.

Corrective Action Plan: The Finance Department will implement monthly budget reviews and make necessary budget transfers or bring budgetary requests to the Council.

Anticipated Completion Date: Immediately
Yreka City Council Agenda
April 7, 2026

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CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council
Prepared by: Emily Aldrich, Finance Director
Agenda title: Raising the Capitalization Limits
Meeting date: April 7, 2026
Discussion:

Generally Accepted Accounting Principles (GAAP) requires that agencies establish a policy for capitalization of assets. There is no threshold or limit on the amounts associated with such policies and each agency is allowed to create a policy that is appropriate for their circumstances.

The City of Yreka currently has resolution number 2506 which set capitalization thresholds of $15,000 per item for equipment and $50,000 for facility improvements in 2005.

Additionally, the City of Yreka has resolution number 2024-10 setting the capitalization thresholds for subscription based assets at $15,000 passed in 2024.

Staff has reviewed current expenditures for these types of assets and recommends that the City reevaluate these thresholds as they are not reflective of 2026 prices. Staff recommends raising the threshold limits to $30,000 for equipment and subscription based assets and $100,000 for facility improvements.

Fiscal Impact:

None
Recommendation and Requested Action:

Adopt resolution 2026-12 in its entirety.

Yreka City Council Agenda
April 7, 2026

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RESOLUTION NO. 2026-12

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YREKA

APPROVING INCREASING THE CAPITALIZATION THRESHOLDS
WHEREAS, the City, currently has established resolution No. 2506 Resolution Of The City Council Of The City Of Yreka Authorizing Implementation Of The Capitalization Threshold and
WHEREAS, the City has resolution No. 2024-10 Resolution By The City Council Of The City Of Yreka Adopting A Capitalization Policy For Implementation Of The Governmental Accounting Standards Board’s Statement No. 87 And Statement No.96; ; and
WHEARAS, current threshold limits are $15,000 per item for equipment and subscription based assets and $50,000 for facilities and capital improvements.

WHEREAS, the City Council has determined it would be in the best interest of the City to increase the threshold limits to $30,000 per item for equipment and subscription based assets and $100,000 for facilities and capital improvements approve and authorize the action outlined in this Resolution.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF YREKA DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. The Council hereby finds and determines that the foregoing recitals are true and correct.

Section 2. The City Council directs as follows:
a) Commencing Fiscal Year 2026 increase capitalization thresholds to $30,000 per item for equipment and subscription based assets and $100,000 for facilities and capital improvements
Section 3. It is further resolved, if any section, subsection, part, clause, sentence or phrase of this Resolution or application thereof is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, the validity of the remaining portions of this Resolution, the application thereof, shall not be effected thereby but shall remain in full force and effect, it being the intention of the City Council to adopt each and every section, subsection, part, clause, sentence phrase regardless of whether any other section, subsection, part, clause, sentence or phrase or the application thereof is held to be invalid or unconstitutional.

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Passed and adopted this 7th day of April 2026, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:
________________________
Colleen Baker, Mayor
Attest:__________________
Cyndy Prohaska,
City Clerk
Yreka City Council Agenda
April 7, 2026

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CITY OF YREKA

CITY COUNCIL AGENDA MEMORANDUM
To: Yreka City Council
From: Mark Gilman, Chief of Police
Prepared by: Cyndy Prohaska, City Clerk
Agenda title: Discussion/Possible Action – Adopt a Resolution Approving the Destruction of Certain City Records from the Yreka Police Department.

Meeting date: April 7, 2026
Discussion
The Yreka Police Department from time-to time purges cases that have no investigative value, and the law allows for their destruction. Reports written from January 1, 2011, to December 31, 2015, numbered 11-0001 through 11-13489, 12-0001 through 12-16310, 13-0001 through 13-4700, 14- 0001 through 14-2590 and 15-0001 through 15-2390 have been reviewed and are ready for destruction.

Reports numbered 11-2739, 12-0520, 12-0772, 12-1246, 12-16153, 13-2800, 13-2834, 13-2862, 14- 0092, 14-0963, 14-1696, 14-2307, 15-1109, 15-1189, 15-2012 and 15-2200 are expressly exempted from this order and shall be retained as requested by the Chief of Police for evidentiary purposes.

Fiscal Impact:

None. Staff on duty will be assigned to shred cases.

Recommendation:

Adopt Resolution 2026-13 of the City Council of the City of Yreka approving the Destruction of Certain City Records identified by the Chief of Police.

APPROVED BY: _________________________
John Elsnab, Interim City Manager
Yreka City Council Agenda
April 7, 2026

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RESOLUTION NO. 2026-13

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YREKA

APPROVING THE DESTRUCTION OF CERTAIN CITY RECORDS

YREKA POLICE DEPARTMENT
WHEREAS, the Chief of Police has requested destruction of certain City documents and records, as hereinafter set forth; and
WHEREAS the destruction of said records is consented to by the City Manager and City Attorney;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Yreka as follows:

SECTION 1: The Yreka Police Department is hereby authorized to destroy the following records, which have been determined by the Chief of Police to have no investigative value:

Reports written from January 1, 2011, to December 31, 2015, numbered 11-0001 through 11- 13489, 12-0001 through 12-16310, 13-0001 through 13-4700, 14-0001 through 14-2590 and 15- 0001 through 15-2390 have been reviewed and are ready for destruction.

Reports numbered 11-2739, 12-0520, 12-0772, 12-1246, 12-16153, 13-2800, 13-2834, 13-2862, 14-0092, 14-0963, 14-1696, 14-2307, 15-1109, 15-1189, 15-2012 and 15-2200 are expressly excepted from this order and shall be retained as requested by the Chief of Police for evidentiary purposes.

SECTION 2: The City Council hereby expressly determines that said records are no longer required and that the same have no historical value.

SECTION 3: The City Manager and City Attorney hereby consent to the destruction of the Records.

SECTION 4: The City Council hereby expressly determines that said records are no longer required and may be destroyed.

PASSED AND ADOPTED First day of April 7, 2026, by the following vote:

AYES:

NOES:

ABSENT:

Colleen Baker, Mayor
Yreka City Council Agenda
April 7, 2026

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Yreka City CouncilApril 7, 2026

Yreka City Council
April 7, 2026