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AGENDA

REGULAR MEETING OF THE LAKEPORT CITY COUNCIL

Tuesday, November 19, 2013 City Council Chambers, 225 Park Street, Lakeport, California 95453
Any person may speak for three (3) minutes on any agenda item; however, total public input per item is not to exceed 15 minutes, extended at the discretion of the City Council. This rule does not apply to public hearings. Non-timed items may be taken up at any unspecified time.

CLOSED SESSION:

CLOSED SESSION TO START AT 5:00 p.m. 1. Threat to Public Services or Facilities (Gov. Code 54957). Consultation with Lakeport Police Department.

I. II. III.

CALL TO ORDER & ROLL CALL: PLEDGE OF ALLEGIANCE: ACCEPTANCE OF AGENDA: Urgency Items:

6:00 p.m.

Move to accept agenda as posted, or move to add or delete items. To add item, Council is required to make a majority decision that an urgency exists (as defined in the Brown Act) and a 2/3rds determination that the need to take action arose subsequent to the Agenda being posted.
The following Consent Agenda items are expected to be routine and noncontroversial. They will be acted upon by the Council at one time without any discussion. Any Council Member may request that any item be removed from the Consent Agenda for discussion under the regular Agenda. Removed items will be considered following the Consent Calendar portion of this agenda.

IV.

CONSENT AGENDA:

A. B. V. A.

Ordinances: Minutes: Citizen Input:

Waive reading except by title, of any ordinances under consideration at this meeting for either introduction or passage per Government Code Section 36934. Approve minutes of the regular City Council meeting of November 5, 2013.
Any person may speak for 3 minutes about any subject within the authority of the City Council, provided that the subject is not already on tonights agenda. Persons wishing to address the City Council are required to complete a Citizens Input form and submit it to the City Clerk prior to the meeting being called to order. While not required, please state your name and address for the record. NOTE: Per Government Code 54954.3(a), the City Council cannot take action or express a consensus of approval or disapproval on any public comments regarding matters which do not appear on the printed agenda.

PUBLIC PRESENTATIONS/REQUESTS:

Presentation: Introduction of New Employees: VI. COUNCIL BUSINESS: A. B. Public Works Director 1. 1. C. VII. VIII. Westshore Pool Downtown Improvement Project Quarterly Financial Report

Presentation of a Certificate of Recognition for Budget Preparation to the City of Lakeport Finance Director Buffalo from the Government Finance Officers Association. Introduction of the new Public Works Department Secretary, and Finance Department Intern.

Request staff direction regarding future operation of the Westshore Pool. Update on the Downtown Improvement Project, Phase II.

City Engineer

Finance Director 1. Presentation of the Fourth Quarter Financial Report.

CITY COUNCIL COMMUNICATIONS: A. Miscellaneous Reports, if any: Adjourn ADJOURNMENT:

City Council Agenda of November 19, 2013

Page 2

Materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet are available for public inspection in the City Clerks Office at 225 Park Street, Lakeport, California, during normal business hours. Such documents are also available on the City of Lakeports website, www.cityoflakeport.com, subject to staffs ability to post the documents before the meeting. The City of Lakeport, in complying with the Americans with Disabilities Act (ADA), requests individuals who require special accommodations to access, attend and/or participate in the City meeting due to disability, to please contact the City Clerks Office, (707) 263-5615, 72 hours prior to the scheduled meeting to ensure reasonable accommodations are provided.

_______________________________________ Hilary Britton, Acting Deputy City Clerk

122025.1

Tuesday, November 05, 2013 City Council Chambers, 225 Park Street, Lakeport, California 95453
CLOSED SESSION: Mayor Engstrom opened the meeting at 5:32 p.m. Mayor Engstrom announced that Item 3 was pulled from the closed session agenda. The City Council adjourned to closed session at 5:34 p.m., to discuss: 1. 2. I. CALL TO ORDER & ROLL CALL: Conference with Legal Counsel; Initiation of Litigation (Gov. Code 54956.9(d)(4)) Number of Potential Cases: 1 Conference with Labor Negotiator (Gov. Code 54957.6); Negotiator: City Manager Silveira. Employee Organization: All units

REGULAR MEETING OF THE LAKEPORT CITY COUNCIL

MINUTES

Mayor Engstrom called the regular meeting of the City Council of the City of Lakeport to order at 6:05 p.m. with Council Members Mattina, Parlet, Scheel and Spillman present. Mayor Engstrom advised there was no reportable action taken on either closed session item. The Pledge of Allegiance was led by Chief Rasmussen. A motion was made by Council member Mattina, seconded by Council member Spillman, and unanimously carried by voice vote to accept the agenda as presented. There were no urgency items.

REPORT OUT OF CLOSED SESSION: II. III. PLEDGE OF ALLEGIANCE: ACCEPTANCE OF AGENDA: Urgency Items: IV. CONSENT AGENDA: A. B. C. D. E. Ordinances: Warrants: Minutes: Application 2013-013 Addendum: Westside Park Ad Hoc Subcommittee: Vote on Consent Agenda:

Waive reading except by title, of any ordinances under consideration at this meeting for either introduction or passage per Government Code Section 36934. Approve warrant registers from October 21, 2013, and October 30, 2013. Approve minutes of the regular City Council meeting of October 15, 2013. Approve addendum to Application 2013-013 for the Very Merry Main Street event, sponsored by the Lakeport Main Street Association (LMSA). Adopt a resolution establishing the Westside Park Ad Hoc Subcommittee. A motion was made by Council member Scheel, seconded by Council member Mattina, and unanimously carried by voice vote to approve the consent calendar items A-E, as presented. There was no citizens input. Mayor Engstrom presented a Certificate of Appreciation to AmeriCorps-Lake County for their Canned Food Drive and Community Service project for Make a Difference Day, held October 26, 2013.

V.

PUBLIC PRESENTATIONS/REQUESTS: A. Citizen Input: Presentation:

VI.

COUNCIL BUSINESS: A. Planning Services Manager 1. Administrative Citation

Planning Services Manager Britton presented the staff report on the proposed fee schedule for the Administrative Citation Appeals process. Kim Beal, Lakeport resident asked a question related to recouping fees. Pat Nunes asked a question related to use of administrative citations. A motion was made by Council member Mattina, seconded by Council member

122025.1

City Council Minutes of November 5, 2013

Page 2

VII.

CITY COUNCIL COMMUNICATIONS: A. Miscellaneous Reports, if any:

Spillman, and unanimously carried by voice vote to adopt a resolution to set a fee schedule for the Administrative Citation appeals process. Council member Scheel stated that he would attend an APC and Transit meeting next week. Council member Parlet complimented Planning Services Manager Britton on his responsiveness to an issue. Council member Mattina commented on the Halloween Holiday. She expressed gratitude to the community for all of the activities and community involvement. Council member Spillman stated that Paula Duggan has been offered the position of Executive Director of the Lakeport Main Street Association. He also thanked Planning Services Manager Britton for his efforts on social media. Mayor Engstrom also commented that staff is very responsive. Planning Services Manager Britton reported that the senior housing project is moving along well and hoping for completion at the end of December. City Manager Silveira commented that the managers are taking applications. City Engineer Harter reported that he attended a pre-bid meeting related to the water tank coating.

VIII.

ADJOURNMENT:

Mayor Engstrom adjourned the meeting at 6:25 p.m.

APPROVED BY:

ATTEST:

_______________________________________ THOMAS ENGSTROM, Mayor

_____________________________________ KELLY BUENDIA, Acting City Clerk

122025.1

CITY OF LAKEPORT
City Council Lakeport Redevelopment Agency City of Lakeport Municipal Sewer District

STAFF REPORT
RE: Westshore Pool Operation and Maintenance SUBMITTED BY: Mark Brannigan, Public Works Director PURPOSE OF REPORT: Information only Discussion Action Item MEETING DATE: 11/19/2013

WHAT IS BEING ASKED OF THE CITY COUNCIL/AGENCY/BOARD: The City Council is being asked to provide direction to staff regarding the Channel Cats intended use of the swimming pool beginning in February 2014 for school swim team training, and provide direction in the repair of the pool pump and motor. BACKGROUND: On December 10, 2004, a 20 year agreement between the City and the Lakeport Unified School District was signed by the City Mayor and School Board President. The attached presentation lists the key points within the agreement and how it impacts the City and School. For many years, the Lakeport School District has not been contributing to the operation and maintenance of the pool under the current pool agreement. The pool agreement places the cost of operating the pool on the School District between March and June for school classes and programs, as well as for training and competitive swimming. Since the School District has not been contributing per the agreement, and the City has carried the full burden of operating the pool year-round. The City has been working with the Channel Cats swim team to help it use the pool during the out of season time frame. At the March 5, 2013 Council meeting staff recommended to the City Council to operate the pool for the "out of season" time frame to allow the Channel Cats to continue giving the youth of our County an opportunity to participate in an organized swim team. The City is planning to open the pool to the public for the months June through August as it has done in the past. At the March 5, 2013 meeting, direction was given to staff to operate and maintain the pool and pay all costs associated with opening the pool for this season, in hopes that the School would begin participating per the pool agreement next year. DISCUSSION: The Chanel Cats are planning to begin school swim team training in February, 2014. There is a lot of work that this club does to prepare for the season, and staff would like to get Council direction in regards to continuing to pay the costs to open the pool, as well as the operation and maintenance of it during the time that the School, under contract, is obligated to maintain the pool. On November 6, 2013 staff arrived at the pool to find the pump and motor inoperable. Staff is currently researching the cost to replace the pump and motor. This pump is needed to filter the pool water and circulate the chemicals (and heat during off-season) throughout the pool. This pump must be replaced to obtain a permit from the Lake County Environmental Health Department, which is needed before anyone
Meeting Date: 11/19/2013 122468.1 Page 1 Agenda Item #VI.A.1.

can use the pool. An email request to the Schools Superintendent was sent on November 12, 2013 asking if the School would participate in sharing the costs associated with repairing this pump. OPTIONS: Direct staff to draft a Memo of Understanding (MOU) between the Chanel Cats and City for the use of the pool during the months outside of the Citys obligated operational timeframe. Request that the Channel Cats seek a MOU with the School District for use of the pool during the off season, or during the months the School is obligated to operate the pool. Provide direction on how to proceed with possible School participation. FISCAL IMPACT: None $ Account Number: 110-3050-990.000 Comments: The current budget has funds set aside for anticipated capital needs of the pool, but the assumption behind the Capital Improvement Plan is to provide 50% of the total cost for any capital needs of the pool, and that the School would provide the remaining funds. SUGGESTED MOTIONS: Make a motion directing the staff to not operate the pool during the months outside of the agreement terms, which require the City to operate the pool from June through August, and to encourage the Channel Cats to approach the School for an MOU. Make a motion directing staff to continue talks with the School to get approval to replace the pump and reach an agreement as to the cost sharing. Attachments: 2004 Agreement between City and School Agreement Key Points

Meeting Date: 11/19/2013 122468.1

Page 2

Agenda Item #VI.A.1.

CityandSchoolPoolAgreement

Reviewofkeypointswithinthe2004 agreementbetweenSchoolandCity

AgreementKeyPoints
Whereas,CityandSchoolwishtocontinuejoint operationsofpoolunderthefollowingtermsand conditions.
Paragraph1.Schoolisownerofpool. Paragraph2.Needforcapitalimprovement(grant)City gets20yearagreementtousepoolforpublicpurposes. Paragraph3.Cityobtainspermitforoperationofpool Schoolpays. Paragraph5.Nomajorcapitalimprovementsshallbe madetothepoolwithoutthepriorapprovalofCityand Schoolandagreementreachedastocostsharing,ifany.

AgreementKeyPointsCont.
AgreementbetweenSchoolandCity
Paragraph6:
SchooldesirestooperatepoolbetweenMarchandJuneforschoolclasses andprograms,andfortrainingandcompetitiveswimming. CitydesirestooperatepoolfromJunethroughAugustforpublic recreation,swimlessons,andcompetitiveswimpracticeandotherevents.

Paragraph7:March Schooloperatespooluntillastdayofschool. June CityoperatespooluntilSchoolbegins.*Poolclosed SeptemberthroughFebruary. Paragraph8:Schoolpayscosttoopenpool.Citypayscoststoclose pool. Paragraph9:SchoolandCityareresponsibleforoperationand maintenancecostsduringitstimeofoperation.


Eitherpartycanenterintoagreementwithotherstoshareinthecostfor O&Mduringtheirtimeofpooloperation.

AgreementKeyPointsCont.
Paragraph10:DuringperiodsofSchoolusetheSchoolsliability andpropertyinsuranceisprimary.LikewiseforCity. Paragraph11.OffseasonCityandSchoolshallsharecostsfor maintenanceofpool.(Electrical,telephone,andchemical costs). Paragraph12:Eitherpartymayterminatethisagreementafter theexpirationoftheinitial20yearsleaseperiod(2024). InWitnessHereof:Executedagreementasof10December, 2004. Signedby:
CityMayorandCityClerk SchoolDistrictPresidentandSecretaryoftheBoard

CITY OF LAKEPORT
City Council City of Lakeport Municipal Sewer District

STAFF REPORT
RE: Downtown Improvement Project SUBMITTED BY: Scott Harter, City Engineer PURPOSE OF REPORT: Information only Discussion Action Item MEETING DATE: 11/19/2013

WHAT IS BEING ASKED OF THE CITY COUNCIL/BOARD: Staff is presenting information on the history of the project as well as its current and future status. BACKGROUND: The Redevelopment Agency funding for this project dates back to 2007 including some RDA bonds from 2004. In 2008 and 2009 multiple public workshops were held to gather input from stakeholders on the direction of the proposed Main Street Improvement Project. A design concept was selected, renderings were produced and desired features were identified which included street trees, patterned sidewalks and crosswalks, street furniture, decorative lighting, sidewalk curb extensions (bulb-outs) at intersections and low monument wall seating. In early 2010 a design team was selected through a competitive process and work began in earnest on the project. In September of 2011 with the design process at about the 80% phase the Redevelopment Director approached the Redevelopment Agency with options to consider reducing the scope of the project due to many factors including legislative actions, flat Redevelopment revenues, and internal budget adjustments. The September 20, 2011 meeting was a public workshop and multiple different scenarios were presented for public consideration and comment as well as RDA consideration. This was followed up by a November 1, 2011 meeting which the RDA provided direction to staff for the scope of the project reduction. The reduced scope project is to focus on Main Street and not include First or Second Streets and is to include two foot wider sidewalks, trees and tree grates, relocate the streetlights when the sidewalks are widened, provide for patterned intersections and crosswalks as well as street reconstruction. In the revised project there are no curb extensions (bulb-outs) or monument walls. Subsequent to the November 2011 meeting the Governor and State Legislature took action to eliminate Redevelopment Agencies and until recently there was a great deal of uncertainty regarding the City's ability to keep and use our redevelopment bond funds. That uncertainty has lessened and we now have the ability to use that funding for our intended project. Our current level of funding remaining is approximately two million dollars for the remaining engineering and construction of the project. The design consultant will be present at the meeting with a short presentation to highlight the features of the approved reduced scope design as well as to provide updated estimates of construction cost. OPTIONS: Review the presented information on the status of the Downtown Improvement Project. FISCAL IMPACT: None $ Account Number: Comments:

SUGGESTED MOTIONS: No action required. Attachments:

Meeting Date: 11/19/2013

Page 1

Agenda Item #VI.B.1.

QUARTERLY FINANCIAL REPORT


OCTOBER 31, 2013 FOURTH QUARTER, 2012-13

OVERVIEW
City management is pleased to present this quarterly financial report summarizing the Citys overall financial activity and position through June 30, 2013. This financial information is unaudited. For audited information, or to find greater detail, please refer to the Citys Comprehensive Annual Financial Report (CAFR), which is released by December 31 each year. ADJUSTED BUDGETS AND REVENUE ESTIMATES. The revenue projections and budget expenditures presented herein include budget adjustments approved by the City Council.

100 Years of pride, progress and service.

GENERAL FUND
GENERAL FUND FINANCIAL CONDITION
General Fund Balance Rev enues Ex penditures Transfers in (out), net Surplus (deficit) Total fund balance, beginning Total fund balance, ending Spendable fund balance, ending Fund balance as a percent of total ex penditures, including transfers out $ Budget $ 4,418,646 4,257,206 (91,574) 69,866 $ YTD Actual $ 4,353,329 3,956,894 (100,818) 295,617 Percent 99% 93% 110%

GENERAL FUND FINANCIAL CONDITION. The Citys general fund is its primary source of discretionary resources for the provision of service deemed necessary and desirable by the citizens of Lakeport and the City Council. The general fund realized an increase in its fund balance of $295,617 for the year, resulting in an ending fund balance of $3.31 million. Of this amount, $1.42 million is available for spending. The remaining amount consists of interfund loans receivable and land held for resale. Total fund balance as a percent of total expenditures was approximately 79%. This constitutes the Citys general reserves, well above the adopted policy requirement of 25%. General fund revenue is reported at 99% of total budget estimates. This is slightly lower than anticipated due to sales and property taxes not meeting expectations. Expenditures are 7% lower than anticipated for the year due to cost savings from vacant positions, operational costs, and capital projects that were not completed by year end. A more detailed discussion of these sources and uses is provided below.

$ 3,011,032 3,306,649 $ 1,412,383 79%

TOP TEN REVENUES COMPARED FY 11/12 TO FY 12/13


1,200,000 1,000,000 800,000 600,000 400,000 200,000 -

TOP 10 REVENUES. The Citys top ten revenue sources account for approximately 81% of total general fund income. Focusing on these sources can provide a useful understanding of the Citys revenue position. The bar graph to the left illustrates the performance of top ten revenues as compared to a year ago.
YTD 11/12 YTD 12/13

Trash collection has been removed from the list, as it is a passthrough to the Citys franchise trash hauler and, with the exception of

CITY OF LAKEPORT
Finance Department 225 Park Street 707.263.5615, ext. 16
PAGE 1 OF 6

QUARTERLY FINANCIAL REPORT


OCTOBER 31, 2013 FOURTH QUARTER, 2012-13

a 3% administrative fee withheld by the City, not available for general governmental purposes. Sales Tax. The City collects sales tax from two sources: normal Bradley-Burns sales taxes - which are shared between City, county, and the state and a cent sales and use tax, commonly referred to as Measure I and devoted entirely to the City. Both tax sources are general taxes and can be used for any regular, general governmental purpose. Overall, sales taxes receipts were not as robust as we expected. Bradley-Burns and Measure I collections were one and two percent higher than last year respectively. Property Tax. Though the housing market is beginning to recover modestly, the increase observed here is, in part, due to the reallocation of former redevelopment funds, which were remitted by the City to the County and redistributed to local taxing agencies. Slightly less than 10.5% of property taxes paid by property owners within the City is allocated to the City. The majority is distributed to local schools and the County of Lake. Property Tax in Lieu of VLF (Vehicle License Fee). These are property tax shares allocated to cities and counties beginning in FY 04-05 as compensation for the states take of Vehicle License Fees (VLF). Collections are slightly lower than a year ago. This revenue source typically mirrors regular property tax collections. Property Tax in Lieu of Sales Tax (Triple Flip). This is a mechanism used to repay the state fiscal recovery bonds pursuant to Prop 57 of 2004. Under the Triple Flip, the local sales and use tax rate is reduced from 1.00% to 0.75% with the 0.25% diverted to repay state fiscal recovery bonds. Cities and counties are reimbursed for the lost revenue from a shift of property tax revenue. The 17% increase over last year is likely due to timing differences in payment to the City and is not indicative of significant increase in sales tax activity. Grants. The City receives two grants to fund public safety activities, known by their acronyms COPS and CHRP. CHRP funds a single officer in the Police Department, whereas the COPS grant is used for any general public safety purpose. Franchise Fees. This includes revenues from franchise fees paid by PG&E, MediaCom (Cable), and Lakeport Disposal. Revenue from this source overall is on par with estimates and modestly higher when compared to a year ago. Rents and Leases. This is revenue collected from leasing properties to private parties and other funds/agencies, i.e. water, and sewer enterprises. This revenue has declined from a year ago due to the loss of the Redevelopment Agency. Business License Tax. Businesses that operate within City limits are required to obtain a business license. A tax is assessed for the privilege of doing so, the proceeds of which are available for unrestricted use in the general fund. Receipts are up significantly from a year ago indicating new business activity in the City.

TOP TEN GENERAL FUND REVENUES BUDGET TO ACTUAL


Top Ten Rev enues Sales Tax - Bradley -Burns Sales and Use Tax - Measure I Property Tax Property Tax in lieu of VLF Property Tax in lieu of Sales Tax Grants Franchise Fees Rents and Leases Business License Tax Permits Total Budget 965,007 724,157 600,054 406,782 349,277 191,880 126,664 116,852 69,215 50,919 3,600,807 YTD Actual 974,855 702,889 525,079 395,960 343,753 184,475 136,288 123,467 95,215 62,148 3,544,129 Percent 101% 97% 88% 97% 98% 96% 108% 106% 138% 122% 98%

TOP TEN GENERAL FUND REVENUES COMPARED


Percent Top Ten Rev enues Compared Sales Tax - Bradley -Burns Sales and Use Tax - Measure I Property Tax Property Tax in lieu of VLF Property Tax in lieu of Sales Tax Grants Rents and Leases Franchise Fees Business License Tax Permits Total YTD 11-12 964,797 689,536 431,077 398,805 294,042 173,855 138,442 131,609 78,154 38,049 3,300,317 YTD 12-13 974,855 702,889 525,079 395,960 343,753 184,475 123,467 136,288 95,215 62,148 3,481,981 Change 1% 2% 22% -1% 17% 6% -11% 4% 22% 63% 6%

Permits. Fees collected from the issuance of building and planning permits join the top 10 list for the first time. This revenue source is significantly higher than last year due to increased building and planning activity.

CITY OF LAKEPORT
Finance Department 225 Park Street 707.263.5615, ext. 16
PAGE 2 OF 6

QUARTERLY FINANCIAL REPORT


OCTOBER 31, 2013 FOURTH QUARTER, 2012-13

DEPARTMENT EXPENDITURES
Departmental expenditures City-wide (i.e., general fund, special revenues funds, RDA Successor Agency, water and sewer) ended the year at 66% of budgeted appropriations. This large variance mostly is attributable to capital projects that were budgeted but not attempted, including Safe Routes to School, the Lakeshore Drive Storm Damage Repair, and the Downtown Main Street Revitalization. Cost savings from position vacancies and general operations also played a large role in keeping expenditures within budget for many departments. For those departments that exceeded their budgetary appropriation, the following events are most responsible: City Attorney: Unanticipated costs associated with special litigation was the largest contributor to budget overruns. The amount of these costs were largely unknown by year-end making budget adjustments difficult. The legal services that generated these costs were approved by the City Council. Housing: Grant-driven housing activities were more robust than anticipated. Expenditures were driven by housing loan issuances and associated administrative costs, all of which are funded through program income or reimbursed by state or federal sources. No general fund or enterprise funds are used for this purpose. Engineering and Information Technology: The overrun in this department derived from the loss of the Safe Routes to School Grant, which required the general fund to absorb over $17,000 in unrecoverable costs. Although departmental expenditures were 66% of budgeted appropriations for the year, City-wide budgeted expenditures, including non-departmental, ended 68% of appropriations. A reconciliation has been provided at the bottom of the chart to the right to help understand the relationship of departmental to total City-wide expenditures. Non-departmental expenditures include items for which the Finance Department administers but are not considered part of its operating costs. These items include most debt service, bank and merchant fees, retiree health premium payments, and other miscellaneous administrative expenses charged by outside agencies. The City maintains budget control at the fund level. However, the Finance Department monitors expenditures at the object or account level (i.e., salaries and benefits, electricity, professional services, etc.) and reports that information monthly to all departments and the City Manager.
City Council

EXPENDITURES BY DEPARTMENT CITY-WIDE BUDGET TO ACTUAL


Ex penditures by Department Administration City Manager: Econ Dev City Attorney Finance Planning Building Housing Engineering and Information Technology Police Public Works: Roads & Infrastructure Parks, Building, Grounds Solid Waste Management Westshore Pool Water O&M Sew er O&M Total 2,133,400 324,222 445,000 108,343 1,461,344 1,570,930 12,097,996 870,174 291,744 437,459 99,910 1,339,193 1,222,216 8,020,091 41% 90% 98% 92% 92% 78% 66% Budget 91,251 405,144 2,298,866 101,442 440,039 220,398 221,299 346,261 266,293 1,663,764 YTD Actual 70,109 383,977 35,877 151,824 434,189 208,794 197,849 374,825 276,952 1,624,999 Percent 77% 95% 2% 150% 99% 95% 89% 108% 104% 98%

EXPENDITURES BY MAJOR CATEGORY CITY-WIDE BUDGET TO ACTUAL


Ex penditures by Major Category Salaries and Benefits Activ e Employ ee Retiree Operations Departmental Non-Departmental Debt Serv ice Capital Improv ements Total 1,237,268 3,668,696 13,222,811 3,785,868 Budget 4,530,979 YTD Actual 4,175,244 3,875,512 299,732 3,103,934 3,018,120 85,814 1,194,367 567,933 9,041,478 97% 15% 68% 82% Percent 92%

Reconciliation to Expenditures by Department Departmental Non-Departmental Total 12,097,996 1,124,815 13,222,811 8,020,091 1,021,387 9,041,478 68%

CITY OF LAKEPORT
Finance Department 225 Park Street 707.263.5615, ext. 16
PAGE 3 OF 6

QUARTERLY FINANCIAL REPORT


OCTOBER 31, 2013 FOURTH QUARTER, 2012-13

ENTERPRISE FUNDS
The City conducts two enterprise activities: water and sewer, housed administratively within the Public Works Department (merged with the Utilities Department in FY 2012-2013). Through the collection of fees and charges, these funds should collect revenues sufficient enough to finance costs associated with administration, operations, capital improvements (CIP), and debt service. Water and sewer activities are accounted for like a business in the private sector. This is starkly different than governmental fund accounting, which is concerned only with current spendable resources, what we call fund balance. This can cause confusion for users of government financial information, because the reconciliation between these two types of accounting can be nebulous. Information presented here is budgetary-based and not GAAP. Working capital is defined as the difference between current assets and current liabilities. It approximates fund balance in governmental funds. In other words, its the resources available to meet ongoing operating, debt service, and capital activities. Non-cash expenses are excluded from this presentation. WATER ENTERPRISE New rates went into effect January 1, 2013. Although operating revenue increased by only four percent from the prior year, revenue from rates averaged 20% higher compared to the same time the previous year. There are several reasons for the discrepancy, including the recognition of only six months of adjusted rate revenues and decreases in other revenue sources, but revenues overall are in line with our expectations. Expenditures overall are down from the year prior due entirely to reduced capital activities. Operating expenditures in personnel, materials, supplies, and service costs were up as work in preparing the USDA loan application and preparing for large capital projects consumed considerable resources. Debt service was up this year due to timing differences in payments from last year. SEWER ENTERPRISE Rate adjustments for sewer were scheduled to go into effect July 1, 2013. Monthly revenue from rates did increase on average from the same month a year ago, but the increase was nominal. Expenditures overall are up from the year prior due to increased capital projects. Congruent to water activities, operating expenditures in personnel, materials, supplies, and service costs were up in preparing for USDA financing. Debt service was down this year compared to last due to timing differences in payments.
Rev enues Operating

WATER ENTERPRISE OPERATIONS


Water O&M Working Capital FY 11-12 $1,409,877 705,026 2,114,903 667,176 404,912 700,000 231,810 2,003,898 111,005 484,257 $ 595,262 FY 12-13 $1,470,681 8,182 1,478,863 695,924 481,142 128,357 257,430 1,562,853 (83,990) 595,262 $ 511,272 Percent Change 4% -99% 70% 4% 19% -82% 11% -22% -176% 23% -14%

Non-operating Total Operating ex penditures Salaries and benefits Materials, supplies and serv ice costs CIP Debt Serv ice Total ex penditures Change in w orking capital Working capital, beginning Working capital, ending

SEWER ENTERPRISE OPERATIONS


Sew er O&M Working Capital FY 11-12 Rev enues Operating Non-operating Total Operating ex penditures Salaries and benefits Materials, supplies and serv ice costs CIP Debt Serv ice Total ex penditures Change in w orking capital Working capital, beginning Working capital, ending 678,953 517,230 9,549 187,259 1,392,991 365,780 717,571 $1,083,351 756,355 608,901 83,809 172,964 1,622,029 146,270 1,083,351 $1,229,621 11% 18% 778% -8% 16% -60% 51% 14% $1,702,739 56,032 1,758,771 $1,728,143 40,156 1,768,299 1% -28% 101% FY 12-13 Percent Change

CITY OF LAKEPORT
Finance Department 225 Park Street 707.263.5615, ext. 16
PAGE 4 OF 6

QUARTERLY FINANCIAL REPORT


OCTOBER 31, 2013 FOURTH QUARTER, 2012-13

REDEVELOPMENT
The Lakeport Redevelopment Agency was officially dissolved February 1, 2012. The City retained the function as the Successor Agency to both the housing and non-housing assets for the purpose of winding down the former agencys affairs, while an oversight board was established, pursuant to AB1X 26 and further revised under AB 1484 to review and oversee the dissolution process. The primary duties of the oversight board are to review and approve a Recognized Obligation Payment Schedule (ROPS), dispose of all remaining, former agency assets, and approve an administrative budget for the Successor Agency (provided to the right). Under AB1X 26 and AB 1484, the City is due an annual administrative cost allowance of $250,000. As of June 30, 2013, the City expended the full amount of that allowance in the performance of dissolution activities and in the planning of remaining projects identified in the most recent Recognized Obligation Payment Schedule (ROPS). The cash assets of the former agencys housing and non-housing funds totaling $638,354 have been surrendered to the county. Of this amount, the Citys general fund received a portion, as did the other taxing entities within the former agencys jurisdiction. The Lakeport Unified School District received the largest share of this redistribution followed by the County of Lake, ERAF (additional amount to the local school district), and the City.

SUCCESSOR AGENCY ACTIVITIES


Successor Agency Activ ities July 1, 2012 - June 30, 2013 EXPENSES General administration Remittance to County Auditor-Controller Debt serv ice Other obligations Total $ 250,000 638,354 296,832 5,909 $ 1,191,095

SUCCESSOR AGENCY ADMINISTRATIVE BUDGET TO ACTUAL


Successor Agency Administrativ e Budget to Actual July 1, 2012 - June 30, 2013 Budget ADMINISTRATIVE COSTS BY FUNCTION General administrativ e ov erhead Successor Agency operational costs Financial management and debt administration Planning and Engineering for dissolution Project and contract completion Total SOURCES OF FUNDING Low and moderate income housing fund Bond proceeds Reserv e balances Administrativ e cost allow ance Redev elopment Property Tax Trust Fund Total Funding sufficiency (deficiency ) 250,000 250,000 250,000 250,000 53,056 30,907 67,253 98,784 250,000 15,014 87,092 62,598 85,296 250,000 Actual to 6/30/2013

CITY OF LAKEPORT
Finance Department 225 Park Street 707.263.5615, ext. 16
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QUARTERLY FINANCIAL REPORT


OCTOBER 31, 2013 FOURTH QUARTER, 2012-13

CITY COUNCIL, REDEVELOPMENT SUCCESSOR AGENCY BOARD, CLMSD BOARD OF DIRECTORS

TOM ENGSTROM MAYOR AND BOARDS CHAIR

STACEY MATTINA MAYOR PRO TEM BOARDS VICE CHAIR

KENNETH PARLET

MARTIN SCHEEL

MARC SPILLMAN

CITY MANAGEMENT TEAM


CITY MANAGER
MARGARET SILVEIRA 263.5615, EXT 32

FINANCE DIRECTOR
DANIEL BUFFALO 263.5615, EXT 16

CITY CLERK
JANEL CHAPMAN 263.5615, EXT 12

CHIEF OF POLICE
BRAD RASMUSSEN 263.5615, EXT 13

CITY ATTORNEY, INTERIM


DAVID RUDERMAN 263.5615. EXT 44

CITY ENGINEER & IT DIRECTOR


SCOTT HARTER 263.5615, EXT 11

ADMINISTRATIVE SERVICES DIRECTOR


KELLY BUENDIA 263.5615, EXT 30

PUBLIC WORKS DIRECTOR


MARK BRANNIGAN 263.263.3578, EXT 104

For More Information. This report is prepared by the Citys Finance Department and is a summary based on detailed information produced by its financial management system. If you would like additional information, or have questions about this report, please call the Finance Department at 263.5615, ext 16.

CITY OF LAKEPORT
Finance Department 225 Park Street 707.263.5615, ext. 16
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