Clearlake City Council Agenda Packet

CITY OF CLEARLAKE
www.clearlake.ca.us
REGULAR MEETING OF
CLEARLAKE CITY COUNCIL
& REDEVELOPMENT SUCCESSOR AGENCY
CLEARLAKE CITY HALL COUNCIL CHAMBERS
14050 OLYMPIC DRIVE
CLEARLAKE, CA 95422
THURSDAY AUGUST 8, 2019 6:00 P.M.

Written material introduced into the record: Citizens wishing to introduce written material into the record
at the public meeting on any item are requested to provide a copy of the written material to the City Clerk
prior to the meeting date so that the material may be distributed to the City Council prior to the meeting.
ROLL CALL:
_____ Mayor Russ Cremer
_____ Vice Mayor Dirk Slooten
_____ Councilmember Phil Harris
_____ Councilmember Joyce Overton
_____ Councilmember Russell Perdock
PLEDGE OF ALLEGIANCE
INVOCATION/MOMENT OF SILENCE: The City Council invites members of the clergy, as well as
interested members of the public in the City of Clearlake, to voluntarily offer an invocation before the
beginning of its meetings for the benefit and blessing of the City Council. This opportunity is voluntary,
and invocations are to be less than three minutes, offered in a solemn and respectful tone, and directed
at the City Council. Invocational speakers who do not abide by these simple rules of respect and brevity
shall be given a warning and/or not invited back to provide a subsequent invocation for a reasonable
period of time, as determined appropriate by the City. This policy is not intended and shall not be
implemented or construed in any way, to affiliate the City Council with, nor express the City Council's
preference for, any faith or religious denomination. Rather, this policy is intended to acknowledge and
express the City Council's respect for the diversity of religious denominations and faiths represented and
practiced among the citizens of Clearlake. If a scheduled invocational speaker does not appear at the
scheduled meeting, the Mayor will ask that the City Council observe a moment of silence in lieu of the
invocation. More information about the City’s invocation policy is available upon request by contacting
the City Clerk at (707) 994-8201x106 or via email at mswanson@clearlake.ca.us.
MEETING PROCEDURES:
All items on the agenda will be open for public comment before final action is taken.
Citizens wishing to introduce written material into the record at the public meeting on
any item are requested to provide a copy of the written material to the City Clerk prior
Page 1 of 4
to the meeting date so that the material may be distributed to the City Council prior to
the meeting. Speakers must restrict comments to the item as it appears on the agenda
and stay within a three-minute time limit. The Mayor has the discretion of limiting the
total discussion time for an item. As a courtesy to others, please turn off cell phones and
any other distracting devices.
ADOPTION OF THE AGENDA (This is the time for agenda modifications.)

PRESENTATIONS:
1. Presentation by Clearlake Code Enforcement Department
PUBLIC COMMENT: This is the time for any member of the public to address the City Council on any
matter not on the agenda that is within the subject matter jurisdiction of the city. Please complete a
“Speaker Information Card” and present it to the City Clerk prior to the start of the meeting. The Brown
Act, with limited exceptions, does not allow the Council or staff to discuss issues brought forth under
Public Comment. The Council cannot take action on non-agenda items. Concerns may be referred to staff
or placed on the next available agenda. Please note that comments from the public will also be taken on
each agenda item. Comments shall be limited to three minutes per person.
CONSENT AGENDA: All items listed under the Consent Agenda are considered to be routine in nature
and will be approved by one motion. There will be no separate discussion of these items unless a member
of the Council or audience requests otherwise, or if staff has requested a change under Adoption of the
Agenda, in which case the item will be removed for separate consideration. Any item so removed will be
taken up following the motion to approve the Consent Agenda.
Consent Items Recommended Action

2. Warrant Registers Receive and file
3. Minutes of the July Meetings Receive and file
4. Adoption of Resolution No. 2019-35, A Adopt resolution
Resolution of the City of Clearlake, Approving
a Temporary Street Closure for the Inaugural
Soap Box Derby
5. Second Reading and Adoption of Ordinance Hold second reading and adopt
No. 231-2019 Amending the Clearlake Ordinance No. 231-2019
Municipal Code Regarding Reserve Police
Officers
6. Acceptance of Annual Audit Report for FYE Receive and file
2018; including the Report to Those Charged
with Governance and the Appropriations
Limit Report
7. Consideration of Continuation of Declaration By motion keep declaration of emergency
of Local Emergency Issued on October 9, active and set next review for the next
2017 and Ratified by Council Action October Council meeting
12, 2017
PUBLIC HEARING:
Page 2 of 4
Notice to the Public
The City Council, when considering the matter scheduled for hearing, will take the following actions:
1. Open the Public Hearing
2. Presentations by Staff
3. Presentation by Applicant or Appellant (if applicable)
4. Accept Public Testimony
5. Applicant or Appellant Rebuttal Period (if applicable)
6. Close the Public Hearing
7. Council Comments and Questions
8. Council Action
Once the hearing is closed, no further public comment will be taken. If you wish to challenge in court
any of the matters on this 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 public hearing.
Public hearings listed for continuance will be continued as noted and posting of this agenda serves as
notice of continuance. Any matter not noted for continuance will be posted separately.
BUSINESS:
8. Consideration of Contract with H D Excavating, in the Amount of $45,000.00, for the Abatement
of Real Properties Located at 16216 34th Avenue, 14170 Konocti Street, 16052 19th Avenue and
3191 6th Street
Recommended Action: Authorize the City Manager to execute a contract with H D Excavating for
the abatement of real properties located at 16216 34th Avenue, 14170 Konocti Street, 16052 19th
Avenue and 3191 6th Street, for a not to exceed amount of $45,000.00, as part of the City’s
CalRecycle Illegal Disposal Site Abatement Grant
9. Discussion and Direction Regarding Proposed Animal Shelter

Recommended Action: Discuss and provide direction to staff regarding proposed animal shelter
and funding plan
10. Consideration of Extending a Moratorium on the Establishment of Tobacco Retailing Businesses,

Smoke Shops, or Hookah or Vapor Lounges within the City of Clearlake
Recommended Action: Adopt Extension of Moratorium – Ordinance No. 232-2019
CITY MANAGER AND COUNCILMEMBER REPORTS

FUTURE AGENDA ITEMS
CLOSED SESSION:
(1) CONFERENCE WITH LABOR NEGOTIATORS: Pursuant to Government Code Section 54957.6: Agency
Designated Representative: City Manager Alan Flora; Employee Organizations: Clearlake
Management/Confidential Employees, Clearlake Police Officer Association, Clearlake Municipal
Employees Association and Clearlake Middle Management Association.
(2) CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION: (Government Code 54956.9) – City of
Clearlake v. PG&E Corporation, et al., Case No. CV 1:17-CV-419398, Lake County Superior Court
Page 3 of 4
ANNOUNCEMENT OF ACTION(S) FROM CLOSED SESSION
ADJOURNMENT
AMERICANS WITH DISABILITY ACT (ADA) REQUESTS
If you need disability-related modification or accommodation, including auxiliary aids or services, to
participate in this meeting, please contact Melissa Swanson, City Clerk, at the Clearlake City Hall, 14050
Olympic Drive, Clearlake, California 95422, phone (707) 994-8201, ext. 106, or via email at
mswanson@clearlake.ca.us at least 72 hours prior to the meeting, to allow time to provide for special
accommodations.
AGENDA REPORTS
Staff reports for each agenda item are available for review at City Hall located at 14050 Olympic Drive
during normal business hours and on the City’s website at www.clearlake.ca.us. Members of the public
are invited to come and comment on any item under discussion.
Any writings or documents pertaining to an open session item provided to a majority of the City Council
less than 72 hours prior to the meeting, shall be made available for public inspection at the front counter
at City Hall located at 14050 Olympic Drive during normal business hours.
POSTED: August 2, 2019

BY:
_____________________________
Melissa Swanson, Administrative Services Director/City Clerk
Page 4 of 4
Item 2
CITY OF CLEARLAKE
CITY COUNCIL STAFF REPORT
MEETING OF: August 8, 2019
Agenda Item No. 4
Subject: Adoption of Resolution No. 2019-35, A Date: August 1, 2019
Resolution of the City of Clearlake, Approving a
Temporary Street Closure for the Inaugural Soap
Box Derby Reviewed & Approved:
From: Tina Viramontes- Deputy City Clerk

Recommended Action: Adopt resolution.
ISSUE STATEMENT AND DISCUSSION:
Project Description: The inaugural Soap Box Derby event is co-sponsored by the City of
Clearlake and the Clear Lake Chamber of Commerce. The event will be held on Saturday,
September 21, 2019. It is proposed that the roads be closed as follows:
a) Dam Rd. Ext. at the College Access road from 6:30am – 5:00pm on the day of the
event.
b) Dam Rd. Ext. at 18th Avenue from 6:30am – 5:00pm.
The Soap Box Derby will be a fun event for the entire family. It will have three (3) different age
divisions and an Art Division. There will be a vendor area with booths at the event, as well.
The application and permitting process includes provisions for the sponsors to assume the
responsibility for placement and removal of physical barricades as per California Motor Vehicle
Code Section 21103 and requires $1,000,000 in liability insurance coverage. Staff worked
closely with PARSAC to limit liability and provide coverage for this event.
1
RESOLUTION NO. 2019-35
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CLEARLAKE
AUTHORIZING TEMPORARY CLOSURE OF A POTRION OF DAM RD. EXT. FOR
THE INAUGURAL SOAP BOX DERBY.
WHEREAS, the Clearlake Chamber of Commerce and the City of Clearlake have requested
permission from the City Council to temporarily close a portion of Dam Rd. Extension for the
Inaugural Soap Box Derby event to be held on Saturday, September 21, 2019.
WHEREAS, the City Council of the City of Clearlake deems such closure necessary for the safety
of persons using portions of Dam Rd. Extension for said activities pursuant to Section
21101(2)(C)(E)(e) of the Vehicle Code; and
NOW, THEREFORE, the City Council of the City of Clearlake hereby authorizes the temporary
street closure of a portion of Dam Road Extension on Saturday, September 21, 2019 as follows:
a) Dam Rd. Ext. College Access road from 6:30am – 5:00pm.
b) Dam Rd. Ext. at 18th Avenue from 6:30am – 5:00pm.
PASSED AND ADOPTED on August 8, 2019 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT
Mayor, City of Clearlake
ATTEST:
_______________________________
City Clerk, City of Clearlake
CITY OF CLEARLAKE
Agenda Item No. 5

Subject: Second Reading and Adoption of Ordinance No. Date: August 2, 2019
231-2019 Amending the Clearlake Municipal
Code Regarding Reserve Police Officers
Reviewed & Approved:
From: Melissa Swanson, City Clerk

Recommended Action: Hold second reading of Ordinance No. 231-2019 and adopt
ordinance
On July 25th, Council held the first reading of Ordinance No. 231-2019. Staff is recommending
the Council hold the second reading of the ordinance by title only and adopt of the ordinance.
From the staff report of July 25th:
The Police Department utilizes reserve police officers to augment the services provided by
regular full-time police officers. Reserve officers are appointed to one of three levels based on
their training and experience and each level dictates the duties they may perform along with
required supervision. The highest level of reserve officers is Level 1, which requires the same
education and training as what is required for a full-time police officer.
When a Level 1 reserve police officer is assigned to the prevention and detection of crime and
the general enforcement of laws of this state, when authorized by City ordinance, they may be
granted the full powers and duties of a full-time peace officer as provided by California Penal
Code §830.1. The authority provided by this section includes the ability to exercise the authority
of a peace officer 24/7. This enables reserve police officers who may happen upon a serious crime
in progress, while off-duty, to intervene and act in the capacity of a peace officer. By acting in
this capacity, they are also afforded certain legal protections, and immunities based on their
peace officer status. This provides enhanced public safety at no meaningful additional cost to the
City.
1
The city does not currently have an ordinance regarding a reserve police officer program or
designation of Level 1 reserve officers. The proposed ordinance codifies the establishment of a
reserve police officer program, including designated Level 1 reserve police officers.
FINANCIAL AND/OR POLICY IMPLICATIONS:
There is no financial cost to the city for this item.
The adoption of the ordinance will support achieving the following Council adopted goal: Update
Policies & Procedures to Current Government Standards – Update ordinances.
2
ORDINANCE NO. 231-2019
AN ORDINANCE AMENDING CHAPTER 2, SECTION 2-8 OF THE

CLEARLAKE MUNICIPAL CODE REGARDING RESERVE POLICE OFFICERS
WHEREAS, pursuant to the Clearlake Municipal Code and California Government Code §38630,
the Chief of Police is responsible for organizing and maintaining the Police Department and the
direction and control of all functions assigned to the department; and
WHEREAS, California Penal Code §830.6 and §832.6 authorize the appointment of reserve police
officers to augment the services provided by regular full-time police officers. Reserve officers
are appointed to one of three levels based on their training and experience and each level
dictates the types of duties they may perform along with required supervision; and
WHEREAS, Penal Code §830.6 requires the adoption of an ordinance to “designate” Level 1
reserve officers, thereby granting them the full powers and duties of a police officer as provided
in Penal Code §830.1.
NOW, THEREFORE, the City Council of the City of Clearlake, State of California does hereby
ordain as follows:
SECTION 1. FINDINGS.
A. The above recitals are declared to be true and correct findings of the City Council of the
City of Clearlake.
SECTION 2.
Chapter 2, Section 2.8 of the Clearlake Municipal Code is amended by adding a new Subsection
2-8.5, to read:
“
2-8.5 Reserve Police Officers
a. The Chief of Police is authorized to maintain a reserve police force and may appoint persons
to the position of reserve police officer who meet the standards as set forth in law, by the
Commission on Peace Officer Standards and Training (POST) and the Police Department’s
rules and regulations. Reserve officers shall serve at the pleasure of the Chief of Police and
the Chief of Police may suspend or revoke the authority of any such officer at any time.
b. The Chief of may select and appoint any Level I reserve police officer as a “designated”
reserve police officer as provided by California Penal Code Section 830.6(a)(2). The authority
of any reserve police officers so designated includes the full powers and duties of a peace
officer as provided by California Penal Code Section 830.1.
”
SECTION 3. SEVERABILITY.
If any provision of this ordinance or the application thereof to any person or circumstance is held
invalid, the remainder of the ordinance and the application of such provision to other persons or
circumstances shall not be affected thereby.
SECTION 4. EXECUTION.
The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City
Clerk shall cause the same to be published once in the official newspaper within 15 days after its
adoption. This Ordinance shall become effective 30 days from its adoption.
Passed and Adopted this day of , 2019 by the following vote:
AYES:
NOES:
ABSENT OR NOT VOTING:
Mayor, City of Clearlake
ATTEST:
City Clerk, City of Clearlake

CITY OF CLEARLAKE

Agenda Item No. 6
Subject: Acceptance of Annual Audit Report for FYE 2018; Date: July 30, 2019
including the Report to Those Charged with
Governance and the Appropriations Limit Report
From: Jill Martin, Interim Finance Director
Recommended Action: Receive and File
The City is required to have an audit completed annually by a qualified independent Certified
Public Accounting firm. For the fiscal year 2017-2018, the City contracted with the firm JJCPA,
Inc. The audit before you is for fiscal year ending June 30, 2018. The auditor is tasked with
presenting an opinion on the financial statements based on their audit. The auditor
represents that the City's financial statements "present fairly, in all material effects, the
respective financial position of the governmental activities, each major fund, and the
aggregate remaining fund information of the City of Clearlake, California, as of June 30, 2018
and the respective changes in financial position, thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America."
In addition to the audit, he has included his report to Those Charged with Governance. In
this report he discusses several items; such as the relative responsibilities of the auditor
and the City, Significant Audit Findings, Significant and Unusual Items, any
Disagreements with Management. It indicates that there were no issues during the audit.
Several items listed are also discussed in the Management Discussion & Analysis section
of the Annual Report.
The annual audit is an ordinary and budgeted item for the City.
Attachments:
City of Clearlake Basic Financial Statements June 30, 2018

Report to Those Charged with Governance
JJACPA, Inc.
A Professional Accounting Services Corp.
May 8, 2019
City Council
City of Clearlake
Clearlake, California
We have audited the basic financial statements of the City of Clearlake (City) as of and for the year,
ended June 30, 2018, and have issued our report thereon dated May 8, 2019. Professional standards
require that we advise you of the following matters relating to our audit.
Our Responsibility in Relation to the Financial Statement Audit
As communicated in our engagement letter dated June 26, 2018, our responsibility, as described by
professional standards, is to form and express an opinion(s) about whether the financial statements that
have been prepared by management with your oversight are presented fairly, in all material
respects, in conformity with accounting principles generally accepted in the United States of America.
Our audit of the financial statements does not relieve you or management of your respective
responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the financial statements are free of material
misstatement. An audit of financial statements includes consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial
reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the
purpose of determining our audit procedures and not to provide any assurance concerning such internal
control.
We are also responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are no required to design procedures for the purpose of identifying other matters to
communicate to you.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to
you.
7080 Donlon Way, Suite 204, Dublin, CA 94568 • phone (925) 556-6200 • fax: (510) 217-5930
1102 South Main Street, Suite I, Fort Bragg, CA 95437 • phone (707) 964-6325
www.jjacpa.com
CITY OF CLEARLAKE, CALIFORNIA
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30, 2018
COMPREHENSIVE ANNUAL Prepared by:
FINANCIAL REPORT Finance Department
CITY OF CLEARLAKE, CALIFORNIA
This page intentionally left blank.
City of Clearlake, California
Basic Financial Statements
For the year ended June 30, 2018
Table of Contents
Page
Independent Auditors’ Report ........................................................................................................... 1
Basic Financial Statements:
Government-Wide Financial Statements:

Statement of Net position .......................................................................................................... 5
Statement of Activities .............................................................................................................. 6
Fund Financial Statements:
Governmental Funds:
Balance Sheet ................................................................................................................................ 10
Reconciliation of Governmental Funds Balance Sheet to the
Statement of Net position ........................................................................................................ 12
Reconciliation of Fund Basis Balance Sheet to Government-wide
Statement of Net position – Governmental Activities ............................................................. 13
Statement of Revenues, Expenditures, and Changes
in Fund Balances – Governmental Funds ................................................................................ 14
Reconciliation of Fund Basis Statements to Government-wide
Statement of Activities ............................................................................................................ 16
Reconciliation of the Statement of Revenues, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of Activities ............................... 17
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget to Actual – General Fund and
Major Special Revenue Funds ................................................................................................. 18
Fiduciary Activities:
Statement of Fiduciary Net position – Fiduciary Activities .......................................................... 26
Statement of Changes in Fiduciary Net position – Private Purpose Trust Funds .......................... 27
i
Table of Contents

Page
Basic Financial Statements, Continued:
Notes to Basic Financial Statements .......................................................................................... 32
Other Supplemental Information:
Required Supplementary Information:

Schedule of Contributions ............................................................................................................. 68
Schedule of the City’s Proportionate Share of the Net Pension Liability ..................................... 69
Nonmajor Special Revenue Funds:

Combining Balance Sheet.............................................................................................................. 74
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances...................................................................................................................... 76
Schedule of Revenues, Expenditures, and Changes in Fund Balances –
Budget to Actual – Low and Moderate ................................................................................... 78
Budget to Actual – Park Development ................................................................................... 79
Budget to Actual – PEG ......................................................................................................... 80
Budget to Actual – Police Grants ........................................................................................... 81
Budget to Actual – Police ABC ............................................................................................... 82
Budget to Actual – Police Asset Seizure ................................................................................. 83
Budget to Actual – Gas Tax..................................................................................................... 84
Budget to Actual – Traffic Impact ........................................................................................... 85
Budget to Actual – Traffic Impact ........................................................................................... 86
Budget to Actual – Recycle ..................................................................................................... 87
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 ....................................................... 89
ii
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council

City of Clearlake
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, the aggregate
remaining fund information, and the budgetary comparison information of the City of Clearlake, California (City), as of and
for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the City’s
basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes 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.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. 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.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, each major fund, the aggregate remaining fund information, and the budgetary
comparison information of the City, as of June 30, 2018, 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.
7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (510) 217-5930
1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325
www.jjacpa.com
The City of Clearlake
Page 2

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require the City’s Schedules of Contributions on
pages 68, and the Schedules of the City’s Proportionate Share of the Net Pension Liability on pages 69, be presented to
supplement the basic financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Management has omitted management's discussion and analysis that accounting principles generally accepted in the United
States of America require to be presented to supplement the basic financial statements. Such missing information, 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. Our opinion on the basic financial statements is not affected by this missing information.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
City’s basic financial statements. The combining and individual nonmajor fund financial statements and the introductory
section and statistical sections are presented for purposes of additional analysis and are not a required part of the basic
financial statements.
The combining and individual nonmajor fund financial statements are the responsibility of management and were derived
from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying accounting and
other records used to prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the combining and individual nonmajor fund financial statements is fairly stated, in all material respects, in
relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 8, 2019 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 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 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 City’s internal control over financial reporting and
compliance.
]]TVcT? \ÇvA
May 8, 2019 JJACPA, Inc.
Dublin, CA
BASIC FINANCIAL STATEMENTS
3
4
Statement of Net Position
June 30, 2018
Governmental
Activities
ASSETS
Cash and investments $ 10,924,295
Receivables:
Accounts 1,926,799
Loans/Notes receivable 11,492,857
Prepaids and Deposits 122,884
Capital assets:
Nondepreciable 7,448,462
Depreciable 8,540,572
Total assets 40,455,869
DEFERRED OUTFLOWS OF RESOURCES

Pension Plan 2,277,391
Total deferred outflows of resources 2,277,391
Total assets and deferred outflows of resources $ 42,733,260
LIABILITIES
Accounts payable and accrued liabilities $ 661,273
Deposits payable 18,230
Compensated absences - current portion 100,000
Noncurrent liabilities:
Claims payable 63,563
Compensated absences 180,121
Net pension liability 7,277,873
Total liabilities 8,301,060
DEFERRED INFLOWS OF RESOURCES
Pension Plan 168,114
Total defered inflows of resources 168,114
NET POSITION
Net investment in capital assets 15,989,034
Restricted 11,669,881
Unrestricted 6,605,171
Total net position 34,264,086
Total liabilities, deferred inflows of resources and net position $ 42,733,260
The accompanying notes are an integral part of these basic financial statements.
5
Statement of Activities
Program Revenues
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary government:
Governmental activities:
General government $ 2,159,206 $ 51,656 $ 953,374 $ -
Public safety 4,749,332 83,346 149,955 -
Housing 2,272,331 - 1,442,633 -
Parks and recreation 146,336 44,670 - -
Public works and streets 5,159,053 403,538 - 2,065,184
Total primary government $ 14,486,258 $ 583,210 $ 2,545,962 $ 2,065,184
General revenues:
Taxes:
Sales taxes
Property taxes, levied for general purposes
Transient occupancy tax
Franchise taxes
Special police tax
Other taxes
Intergovernmental:
State motor vehicle in-lieu tax (MVLF)
Use of money and property
Other general revenues
Total general revenues
Transfer from Fiduciary Activities
Total general revenues and transfers
Special items:
Write off investment in land held for resale
Disallowed Advance to Successor Agency Fiduciary Activities
Change in net position
Net position:
Beginning of year
End of year
6
Net (Expense) Revenue
and Changes in Net
Position
Governmental
Activities
$ (1,154,176)
(4,516,031)
(829,698)
(101,666)
(2,690,331)
(9,291,902)
1,664,815
967,079
331,121
807,592
953,992
342,444
1,127,845
33,369
435,888
6,664,145
-
6,664,145
(1,534,885)
(1,581,921)
(5,744,563)
40,008,649
$ 34,264,086
7
8
FUND FINANCIAL STATEMENTS
MAJOR FUNDS
Fund Description
Governmental Funds: Governmental funds are used for taxes and grants.
General Primary operating fund of the City; accounts for all activities
except those legally or administratively required to be accounted
for in other funds.
Police Measure P This fund is used to account for the use of a special sales tax
measure approved for funding public safety activities.
CDBG Code Enforcement CDBG funding is used to support several areas of the Code
Enforcement operations in areas of the City that meet CDBG
program requirments.
HOME RLF Revolving loan funds used to account for activities pertaining to
multi-family, first-time homebuyer, rehabilitation and other
affordable housing loan and grant programs.
Series A Infrastructure Bond Proceeds Series A Bond originally issued in 2006 and refinanced in 2017
proceeds used to complete various road and infrastructure projects
consistent with the original bond issuance.
Series B Infrastructure Bond Proceeds Series B Bond originally issued in 2006 and refinanced in 2017
proceeds used to complete various road and infrastructure projects
consistent with the original bond issuance.
Roads Measure V In 2016 the voters imposed a 1% transaction and use tax for
improving and maintaining the roads with the City. The tax
sunsets in 20 years and an Oversight Committee has been
established to review prior year expenditures
Grants This fund includes the majority of all capital projects

conducted by the City of Clearlake. The projects are funded
by grant revenue deposited in Fund 240 or transfers from
other funds within the City budget.
9
Balance Sheet
Governmental Funds
June 30, 2018
Major Funds
General Police CDBG Code

Fund Measure P Enforcement HOME RLF
ASSETS
Cash and investments $ 431,982 $ 91,473 346,122 $ 288,001
Restricted cash and investments - - - -
Receivables:
Taxes 1,049,832 82,300 - -
Interest 30,313 - - -
Intergovernmental - - - -
Loans/Notes receivable - - 2,198,361 8,314,488
Other receivable 127,823 - - -
Due from other funds - - - -
Prepaids and Deposits 121,168 - 1,716 -
Total assets $ 1,761,118 $ 173,773 $ 2,546,199 $ 8,602,489
LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:
Accounts payable $ 155,272 $ - $ 172 $ -
Accrued liabilities 193,342 - - -
Due to other funds - - -
Deposits payable 16,605 - - -
Total liabilities 365,219 - 172 -
Deferred inflows of resources:
Unavailable revenue - - 2,198,361 8,314,488
Total deferred inflows of resources: - - 2,198,361 8,314,488
Total Liabilities and deferred inflows 365,219 - 2,198,533 8,314,488
Fund balances:
Restricted for:
Capital projects - - - -
Highways and streets - - - -
Public safety - 173,773 - -
Community promotion - - - -
Affordable housing - - 347,666 288,001
Committed for:
Econcomic uncertainties 207,132 - - -
Assigned:
Self Insurance 150,000 - - -
Unassigned (Deficit) 1,038,767 - - -
Total fund balances 1,395,899 173,773 347,666 288,001
Total liabilities, deferred inflows and fund balances $ 1,761,118 $ 173,773 $ 2,546,199 $ 8,602,489
10
Major Funds
Series A Series B
Infrastructure Infrastructure Nonmajor
Bond Bond Roads Governmental
Proceeds Proceeds Measure V Grants Funds Totals
$ 4,579,956 $ 2,941,896 $ 1,230,260 $ - $ 1,014,605 $ 10,924,295

- - - - - -
- - 144,400 - - 1,276,532
- - - - - 30,313
- - - - - -
- - - - 980,008 11,492,857
- - - 418,169 73,962 619,954
998,360 - - - - 998,360
- - - - - 122,884
$ 5,578,316 $ 2,941,896 $ 1,374,660 $ 418,169 $ 2,068,575 $ 25,465,195
$ - $ - $ 107,975 $ 191,114 $ 13,398 $ 467,931

- - - - - 193,342
- - - 998,360 - 998,360
- - - - 1,625 18,230
- - 107,975 1,189,474 15,023 1,677,863
- - - - 980,008 11,492,857
- - - - 980,008 11,492,857
- - 107,975 1,189,474 995,031 13,170,720
5,578,316 2,941,896 - - 485,188 9,005,400

- - 1,266,685 - 298,861 1,565,546
- - - - 201,992 375,765
- - - - 87,503 87,503
- - - - - 635,667
- - - - - 207,132
- - - - - 150,000
- - - (771,305) - 267,462
5,578,316 2,941,896 1,266,685 (771,305) 1,073,544 12,294,475
$ 5,578,316 $ 2,941,896 $ 1,374,660 $ 418,169 $ 2,068,575 $ 25,465,195
11
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2018
Total fund balances - total governmental funds $ 12,294,475
Amounts reported for governmental activities in the Statement of Net Position are
different because:
Long-term advances are not available to pay current period expenditures and,
therefore, are deferred in the governmental funds. -
Capital assets used in governmental activities are not current financial

resources and, therefore, are not reported in the governmental funds balance
sheet. 15,989,034
Long-term liabilities are not due and payable in the current period and,
therefore, are not reported in the governmental funds balance sheet.
Compensated absences $ (280,121)
Claims (63,563)
Net pension liability (7,277,873) (7,621,557)
Governmental funds notes receivable from various loan programs are

deferred under the current financial resources measurement focus. The notes
receivable are recognized in the government-wide Statement of Net Position
under the accrual basis of accounting. 11,492,857
Pension and OPEB obligations result in deferred outflows and inflows of

resources associated with the actuarial value of contributions, assets and
Deferred outflows - Pension 2,277,391
Deferred inflows - Pension (168,114) 2,109,277
Net Position of governmental activities $ 34,264,086
12
Reconciliation of Fund Basis Balance Sheet to Government-wide Statement of Net Position
Governmental Activities
June 30, 2018
Governmental
Funds Changes Statement of
Balance Sheet Reclassifications in GAAP Net Position
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES
Current assets:
Cash and investments $ 10,924,295 $ - $ - $ 10,924,295
Receivables:
Taxes 1,276,532 - - 1,276,532
Interest 30,313 - - 30,313
Loans/Notes receivable 11,492,857 - - 11,492,857
Other receivable 619,954 - - 619,954
Due from other funds 998,360 (998,360) - -
Prepaids and Deposits 122,884 - - 122,884
Total current assets 25,465,195 (998,360) - 24,466,835
Noncurrent assets:
Capital assets, net - - 15,989,034 15,989,034
Total noncurrent assets - - 15,989,034 15,989,034
Total assets 25,465,195 (998,360) 15,989,034 40,455,869
Deferred outflows of resources:
Pension Plan - - 2,277,391 2,277,391
Total assets and deferred outflows of resources $ 25,465,195 $ (998,360) $ 18,266,425 $ 42,733,260
LIABILITIES AND DEFERRED INFLOWS OF RESOURCES

Current liabilities:
Accounts payable and accrued liabilities $ 661,273 $ - $ - $ 661,273
Due to other funds 998,360 (998,360) - -
Deposits payable 18,230 - - 18,230
Due to other governments - - - -
Compensated absences - current portion - - 100,000 100,000
Due within one year - - - -
Total current liabilities 1,677,863 (998,360) 100,000 779,503
Noncurrent liabilities:
Long-term liabilities:
Compensated absences - - 180,121 180,121
Claims - - 63,563 63,563
Net pension liability - - 7,277,873 7,277,873
Total noncurrent liabilities - - 7,521,557 7,521,557
Total liabilities 1,677,863 (998,360) 7,621,557 8,301,060
Deferred inflows of resources
Unavailable revenue 11,492,857 - (11,492,857) -
Pension plan - - 168,114 168,114
Total liabities and deferred inflows of resources: 13,170,720 (998,360) (3,703,186) 8,469,174
FUND BALANCES/NET POSITION
Fund balances:
Nonspendable - - - -
Restricted 11,669,881 (11,669,881) - -
Committed 207,132 (207,132) - -
Assigned 150,000 (150,000) - -
Unassigned (deficit) 267,462 (267,462) - -
Net position: -
Net investment in capital assets - - 15,989,034 15,989,034
Restricted - - 11,669,881 11,669,881
Unrestricted - 12,294,475 (5,689,304) 6,605,171
Total fund balances/net position 12,294,475 - 21,969,611 34,264,086
Total liabilities, deferred inflows and net position $ 25,465,195 $ (998,360) $ 18,266,425 $ 42,733,260
13
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Major Funds
General Police CDBG Code HOME

Fund Measure P Enforcement RLF
REVENUES:
Taxes and assessments $ 4,644,053 $ 953,992 $ - $ -
Licenses and permits 105,723 - - -
Fines and forfeitures 232,225 - - -
Intergovernmental 142,651 - - -
Use of money and property 78,039 - - -
Charges for services 200,592 - - -
Other revenues 332,168 - 71,540 47,951
Total revenues 5,735,451 953,992 71,540 47,951
EXPENDITURES:
Current:
General government 1,329,495 - - -
Public safety 3,846,327 818,446 - -
Housing - - 83,733 204,052
Parks and recreation 145,869 - - -
Public works and streets 447,384 - - -
Capital outlay - - 1,750 -
Total expenditures 5,769,075 818,446 85,483 204,052
REVENUES OVER (UNDER)

EXPENDITURES (33,624) 135,546 (13,943) (156,101)
OTHER FINANCING SOURCES (USES):

Write off investment in land held for resale (76,368) - (336,963) (242,173)
Transfers in 190,635 - -
Transfers out - (41,322) - -
Total other financing sources (uses) 114,267 (41,322) (336,963) (242,173)
Net change in fund balances 80,643 94,224 (350,906) (398,274)
FUND BALANCES (DEFICITS):

Beginning of year 1,315,256 79,549 698,572 686,275
End of year $ 1,395,899 $ 173,773 $ 347,666 $ 288,001
14
Major Funds
Series A Series B
Infrastructure Infrastructure Other
Bond Bond Roads Governmental
Proceeds Proceeds Measure V Grants Funds Totals
$ - $ - $ 2,029,678 $ - $ 183,680 $ 7,811,403

- - - - - 105,723
- - - - - 232,225
- - - 2,240,198 541,775 2,924,624
- - - - - 78,039
- - - - - 200,592
- - - - 105,804 557,463
- - 2,029,678 2,240,198 831,259 11,910,069
- - - - 28,855 1,358,350
- - - - 84,559 4,749,332
- - - - 49,283 337,068
- - - - 467 146,336
6,820 2,411 1,036,871 2,821,792 514,173 4,829,451
51,339 - - - 6,264 59,353
58,159 2,411 1,036,871 2,821,792 683,601 11,479,890
(58,159) (2,411) 992,807 (581,594) 147,658 430,179
- - - (879,381) (1,534,885)
514 173 - 57,967 847,751 1,097,040
- (847,751) (57,967) - (150,000) (1,097,040)
514 (847,578) (57,967) 57,967 (181,630) (1,534,885)
(57,645) (849,989) 934,840 (523,627) (33,972) (1,104,706)
5,635,961 3,791,885 331,845 (247,678) 1,107,516 13,399,181

$ 5,578,316 $ 2,941,896 $ 1,266,685 $ (771,305) $ 1,073,544 $ 12,294,475
15
Reconciliation of Fund Basis Statements to Government-wide Statement of Activities
Compensated Capital
Absences/ Asset Government-
Fund Based Debt (Additions)/ Pension Loss on Loan Claims wide
Functions/Programs Totals Service Depreciation Retirements Plan Receivable Payable Totals
General government $ 1,358,350 $ (16,610) $ 256,285 $ 531,191 $ 89,361 $ - $ (59,371) $ 2,159,206
Public safety 4,749,332 - - - - - - 4,749,332
Housing 337,068 - - - - 1,935,263 - 2,272,331
Parks and recreation 146,336 - - - - - - 146,336
Public works and streets 4,829,451 - 329,626 (24) - - 5,159,053
Capital outlay 59,353 - - (59,353) - - - -
Debt service/Interest - - - - - - - -
Total governmental activities $ 11,479,890 $ (16,610) $ 585,911 $ 471,814 $ 89,361 $ 1,935,263 $ (59,371) $ 14,486,258
16
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities
Net change in fund balances - total governmental funds $ (1,104,706)
Amounts reported for governmental activities in the Statement of Activities are different
because:
Governmental funds report capital outlays as expenditures while governmental

activities report depreciation expense to allocate those expenditures over the life of
Capital asset additions and retirements $ (471,814)
Depreciation expense (585,911) (1,057,725)
Certain notes receivable are reported in the governmental funds as expenditures and
then offset by a deferred revenue as they are not available to pay current
expenditures. Likewise, when the note is collected it is reflected in revenue. This is
the net change between notes receivable collected and issued.
Lien receivable 87,500
Loan payments (139,068)
Loan receivable (1,935,263)
Repayment and issuance of debt is an expenditure and other financing source in the
governmental funds, but the repayment reduces and the issuance increases long-term
liabilities in the Statement of Net Position:
Claims payable 59,371
Some expenses reported in the Statement of Activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds:
Disallowance of private purpose trust/Fiduciary Activities advances - (1,581,921)
Change in compensated absences 16,610
Certain employee benefit obligations are recorded on a pay-as-you-go basis in the

governmental funds, but are accrued as liabilities in the Statement of Net Position:
Pension Plan (89,361) (89,361)
Change in Net Position of governmental activities $ (5,744,563)
17
Schedule of Revenues, Expenditures, and Changes in Fund Balances -
Budget to Actual - Major Funds
General Fund
Variance w/Final
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Taxes and assessments $ 4,252,241 $ 4,252,241 $ 4,644,053 $ 391,812
Licenses and permits 100,300 100,300 105,723 5,423
Fines and forfeitures 25,500 25,500 232,225 206,725
Intergovernmental 181,300 181,300 142,651 (38,649)
Use of money and property 247,000 247,000 78,039 (168,961)
Charges for services 191,000 191,000 200,592 9,592
Reimbursements - - - -
Other revenues 135,100 135,100 332,168 197,068
Total revenues 5,132,441 5,132,441 5,735,451 603,010
EXPENDITURES:
Current:
General government 1,028,172 1,028,172 1,329,495 (301,323)
Public safety 3,945,279 3,945,279 3,846,327 98,952
Housing - - - -
Parks and recreation 178,913 178,913 145,869 33,044
Public works and streets 558,168 558,168 447,384 110,784
Capital outlay - - - -
Debt service:
Principal - - - -
Interest - - - -
Total expenditures 5,710,532 5,710,532 5,769,075 (58,543)

EXPENDITURES (578,091) (578,091) (33,624) 544,467

Write off investment in land held for resale - - (76,368) (76,368)
Transfers in 186,639 186,639 190,635 3,996
Transfers out - - - -
Total other financing sources (uses) 186,639 186,639 114,267 (72,372)
Net change in fund balances (391,452) (391,452) 80,643 472,095
FUND BALANCES (DEFICIT):

Beginning of year 1,315,256 1,315,256 1,315,256 -
End of year $ 923,804 $ 923,804 $ 1,395,899 $ 472,095
18
Police Measure P CDBG Code Enforcement
Variance w/Final Variance w/Final
Budgeted Amounts Positive Budgeted Amounts Positive
Original Final Actual (Negative) Original Final Actual (Negative)
1,006,000 1,006,000 $ 953,992 $ (52,008) $ - $ - $ - $ -

- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - 205,204 205,204 71,540 (133,664)
1,006,000 1,006,000 953,992 (52,008) 205,204 205,204 71,540 (133,664)
- - - - - - - -
1,053,408 1,053,408 818,446 234,962 - - - -
- - - - 86,862 86,862 83,733 3,129
- - - - - - - -
- - - - - - - -
- - - - 1,943 1,943 1,750 193
-
- - - - - - - -
- - - - - - - -
1,053,408 1,053,408 818,446 234,962 88,805 88,805 85,483 3,322
(47,408) (47,408) 135,546 182,954 116,399 116,399 (13,943) (130,342)
- - - - - - (336,963) (336,963)
- - - - - - - -
- - (41,322) (41,322) - - - -
- - (41,322) (41,322) - - (336,963) (336,963)
(47,408) (47,408) 94,224 141,632 116,399 116,399 (350,906) (467,305)
79,549 79,549 79,549 - 698,572 698,572 698,572 -

$ 32,141 $ 32,141 $ 173,773 $ 141,632 $ 814,971 $ 814,971 $ 347,666 $ (467,305)
19
HOME RLF
Variance w/Final
REVENUES:
Taxes and assessments $ - $ - $ - $ -
Licenses and permits - - - -
Fines and forfeitures - - - -
Use of money and property - - - -
Charges for services - - - -
Other revenues - - 47,951 47,951
Total revenues - - 47,951 47,951
EXPENDITURES:
Current:
General government - - - -
Public safety - - - -
Housing - - 204,052 (204,052)
Parks and recreation - - - -
Public works and streets - - - -
Debt service:
Principal - - - -
Interest - - - -
Total expenditures - - 204,052 (204,052)

EXPENDITURES - - (156,101) (156,101)

Transfers in - - - -
Total other financing sources (uses) - - (242,173) (242,173)
Net change in fund balances - - (398,274) (398,274)

Beginning of year 686,275 686,275 686,275 -
End of year $ 686,275 $ 686,275 $ 288,001 $ (398,274)
20
Series A Infrastructure Bond Proceeds Series B Infrastructure Bond Proceeds
Variance w/Final Variance w/Final
Budgeted Amounts Positive Budgeted Amounts Positive
Original Final Actual (Negative) Original Final Actual (Negative)
$ - $ - $ - $ - $ - $ - $ - $ -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - 6,820 (6,820) - - 2,411 (2,411)
- - 51,339 (51,339) - - - -
-
- - - - - - - -
- - - - - - - -
- - 58,159 (58,159) - - 2,411 (2,411)
- - (58,159) (58,159) - - (2,411) (2,411)
- - - - - - - -
- - 514 514 - - 173 173
(4,530,000) (4,530,000) - 4,530,000 - - (847,751) (847,751)
(4,530,000) (4,530,000) 514 4,530,514 - - (847,578) (847,578)
(4,530,000) (4,530,000) (57,645) 4,472,355 - - (849,989) (849,989)
5,635,961 5,635,961 5,635,961 - 3,791,885 3,791,885 3,791,885 -

$ 1,105,961 $ 1,105,961 $ 5,578,316 $ 4,472,355 $ 3,791,885 $ 3,791,885 $ 2,941,896 $ (849,989)
21
Roads Measure V
Variance w/Final
REVENUES:
Taxes and assessments 1,700,000 1,850,000 $ 2,029,678 $ 179,678
Licenses and permits - - - -
Fines and forfeitures - - - -
Use of money and property - - - -
Charges for services - - - -
Other revenues - - - -
Total revenues 1,700,000 1,850,000 2,029,678 179,678
EXPENDITURES:
Current:
General government - - - -
Public safety - - - -
Housing - - - -
Parks and recreation - - - -
Public works and streets 1,977,000 1,977,000 1,036,871 940,129
Debt service:
Principal - - - -
Interest - - - -
Total expenditures 1,977,000 1,977,000 1,036,871 940,129

EXPENDITURES (277,000) (127,000) 992,807 1,119,807

Transfers out - - (57,967) (57,967)
Net change in fund balances (277,000) (127,000) 934,840 1,061,840

End of year $ 54,845 $ 204,845 $ 1,266,685 $ 1,061,840
22
Grants
Variance w/Final
$ - $ - $ - $ -
- - - -
- - - -
- - 2,240,198 2,240,198
- - - -
- - - -
- - - -
- - - -
- - 2,240,198 2,240,198
- - - -
- - - -
- - - -
- - - -
- - 2,821,792 (2,821,792)
- - - -
- - - -
- - - -
- - 2,821,792 (2,821,792)
- - (581,594) (581,594)
- - - -
- - - -
- - 57,967 57,967
- - - -
- - 57,967 57,967
- - (523,627) (523,627)
(247,678) (247,678) (247,678) -

$ (247,678) $ (247,678) $ (771,305) $ (523,627)
23
24
FIDUCIARY ACTIVITIES
Fund Description
Private Purpose Trust Funds are used for resources held for other individuals and entities in a
manner similar to private enterprise.
Private Purpose Trust Funds

Successor Agency Accounts for funds collected and disbursed for the
dissolution of the former Redevelopment Agency
25
City Clearlake, California
Statement of Fiduciary Net Position
Fiduciary Activities
June 30, 2018
Private Purpose
Trust
Successor
Agency
ASSETS
Current assets:
Cash and investments $ 166,404
Restricted cash and investments 1,012,543
Loans receivable 5,746
Deposits 10,000
Land held for resale 2,083,877
Total current assets 3,278,570
Total assets $ 3,278,570
LIABILITIES
Current liabilities:
Interest payable $ 167,574
Other liabilities 10,000
Due within one year 632,203
Total current liabilities 809,777
Long-term liabilities:
Due after one year 12,304,647
Total long-term liabilities 12,304,647
Total liabilities 13,114,424
NET POSITION (DEFICIT)

Net position held in trust for
Redevelopment Dissolution (9,835,854)
Total Net Position (deficit) (9,835,854)
Total liabilities and net position $ 3,278,570
26
Statement of Changes in Fiduciary Net Position
Private Purpose Trust Funds
Private Purpose
Trust
Successor
Agency
ADDITIONS:
Distributions for enforceable obligations $ 1,190,302
Gain on refunding 1,026,601
Disallowance of advances from the City of Clearlake 1,581,921
Abatements 24,254
Transfer from the City of Clearlake 13,361
Total operating revenues 3,836,439
DEDUCTIONS:
Bond interest 654,999
Administrative costs 86,010
Costs of issuance 249,186
Other deductions -
Total operating expenses 990,195
CHANGE IN FIDUCIARY NET POSITION 2,846,244

NET POSITION (DEFICIT):
Beginning of year (12,682,098)
End of year $ (9,835,854)
27
28
NOTES TO BASIC FINANCIAL STATEMENTS
29
30
Index to Notes to Basic Financial Statements

The notes to the financial statements include a summary of significant accounting policies and other
notes considered essential to fully disclose and fairly present the transactions and financial position of
the City as follows:
Page
Note 1 - Summary of Significant Accounting Policies .................................................................... 32

Note 2 - Cash and Investments ........................................................................................................ 43
Note 3 - Accounts Receivable .......................................................................................................... 45
Note 4 – Loans and Notes Receivable ............................................................................................. 46
Note 5 - Capital Assets..................................................................................................................... 47
Note 6 - Accounts payable and Accrued Liabilities ........................................................................ 48
Note 7 - Long Term Liabilities ........................................................................................................ 48
Note 8 - Net Position/Fund Balances ............................................................................................... 49
Note 9 - Interfund Transactions and Interfund Borrowing .............................................................. 52
Note 10 - Risk Management ............................................................................................................ 53
Note 11 - Public Employee Retirement Plan ................................................................................... 54
Note 12 - Commitments and Contingencies .................................................................................... 60
Note 13 – Successor Agency Trust for Assets of Former Redevelopment Agency ........................ 60
Note 14 – New Accounting Pronouncements .................................................................................. 63
31
Notes to the Basic Financial Statements

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City conform to accounting principles generally accepted in the United
States of America as applied to government agencies. The Governmental Accounting Standards Board
(GASB) is the accepted standard-setting body for establishing governmental accounting and financial
reporting principles. The more significant accounting policies of the City are described below:
A. Defining the reporting entity
The City of Clearlake is a municipal corporation governed by an elected five-member City Council.
The accompanying financial statements present the government and its component units, entities for
which the City is considered to be financially accountable.
Blended Component Units – The Clearlake Public Financing Authority is a separate legal entity created
for the purpose of improving the economic conditions of the City, making public improvements and
providing financing for these purposes. This entity is governed by the City Council of the City of
Clearlake,and is therefore reported as if it was part of the City. The Authority is reported as part of the
City's special revenue, capital projects and debt service funds. The component unit redevelopment
agency was dissolved effective February 1, 2012 and all residual asset and liabilities are reported in the
Successor Agency private purpose fiduciary funds.
B. Government-wide and Fund Financial Statements
The government-wide financial statements report information on all of the non-fiduciary activities of
the primary government. For the most part, the effect of interfund activity has been removed from
these statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues are reported separately from business-type activates, which rely to a
significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include (1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and (2) grant and contributors that are restricted to meeting the operational or capital
requirements of a particular function. Taxes, and other items not properly included among program
revenues are reported instead as general revenues.
The accounts of the City are organized on the basis of funds. The operations of each fund are
accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund
equity, revenue, and expenditures or expenses, as appropriate. Government resources are allocated to,
and accounted for, in individual funds based upon the purposes for which they are to be spent and the
means by which spending activities are controlled.
32
Notes to the Basic Financial Statements, Continued

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
In the fund financial statements in the report, the various funds are grouped into generic funds within
three broad fund types. They are as follows:
Governmental Funds
The General Fund is the general operating fund of the City. It is used to account for all financial
resources except those required to be accounted for in another fund.
Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than
special assessments, expendable trust of major capital projects) that are legally restricted to
expenditures for specific purposes.
Capital Project Funds are used to account for revenue and expenditures restricted to the acquisition or
major capital facilities (other than those financed by proprietary or trust funds).
Fiduciary Funds
Trust Funds are used to account for assets held by the government in a trustee capacity. The City
reports one private purpose trust fund: Redevelopment Non-Housing Successor Private Purpose Trust
Fund which accounts for fund collect and disbursed for the dissolution of the former Clearlake
Redevelopment Agency. For more information about the Successor Agency for the Former Clearlake
Redevelopment Agency see Note 13.
An emphasis is placed on major funds within the governmental and proprietary categories. A fund is
considered major if it is the primary operating fund of the City or meets the following criteria:
1. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental
fund are at least 10 percent of the corresponding total for all funds of that category or type;
and,
2. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental
fund are at least 5 percent of the corresponding total for all governmental funds combined.
The City reports the following major funds:

 General Fund
 Police Measure P
 CDBG Code Enforcement
 HOME RLF
 Series A Infrastructure Bond Proceeds
 Series B Infrastructure Bond Proceeds
 Roads Measure V
 Grants
33

C. Basis of Accounting and Measurement Focus

Basis of accounting refers to when revenue and expenditures (or expenses) are recognized in the
accounts and reported in the financial statements. Basis of accounting relates to the timing of
measurements made, regardless of the measurement focus applied.
Measurement focus is the determination of (1) which assets and which liabilities are included on a
government's balance sheet and where they are reported, and (2) whether an operating statement
presents information on the flow of financial resources (revenues and expenditures) or information on
the flow of economic resources (revenues and expenses).
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund financial statement. Revenue is
recorded when earned and expenses are recorded when liabilities are incurred, regardless of the timing
of related cash flows. Property taxes are recognized as revenue in the year for which they are levied.
Grants and similar items are recognized as revenue as soon as all eligibility requirements have been
met.
In the fund financial statements, all governmental funds are accounted for using the modified accrual
basis of accounting. Revenue is recognized when they become both measurable and available to
finance the expenditures of the current period (susceptible to accrual). Major revenue sources
susceptible to accrual include substantially all property taxes, taxpayer-assessed taxes (such as sales
and use, utility users, business license, transient occupancy, franchise fees and gas taxes), interest,
special assessments levied, state and federal grants and charges for current services. For this purpose,
the City considers revenues to be available if they are collected within 90 days of the end of the current
fiscal period. Revenue from licenses, permits, fines and forfeits is recorded as received. Expenditures
are recorded when the related fund liability is incurred.
All governmental funds are accounted for using a current financial resources measurement focus. This
means that only current assets and current liabilities are generally included on their balance sheets.
Their reported fund balance (net current assets) is considered a measure of “available spendable
resources.” Governmental fund operating statements present increases (revenue and other financing
sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they
present a summary of sources and uses of “available spendable resources” during a period.
The government-wide financial statements, as well as the proprietary funds and fiduciary funds
(including agency funds) financial statements, are accounted for on a flow of economic resources
measurement focus. This means that all assets and all liabilities (whether current or noncurrent)
associated with their activity are included on their balance sheets. Proprietary fund operating
statements present increases (revenues) in net total assets.
34

D. Use of Estimates
Financial statement preparation in conformity with accounting principles generally accepted in the
United States of America requires the use of estimates and assumptions that affect the reported amount
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenditures/expenses during the reporting period.
Actual results could differ from those estimates.
E. Cash and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-
term investments with original maturities of three months or less from the date of acquisition.
The City pools cash and investments from all funds for the purpose of increasing income through
investment activities. Highly liquid money market investments with maturities of one year or less at
time of purchase are stated at amortized cost. All other investments are stated at fair value in
accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain
Investments and for External Investment Pools. Market value is used as fair value for those securities
for which market quotations are readily available.
F. Receivables and Payables
Balances representing lending/borrowing transactions between funds outstanding at the end of the
fiscal year are reported as either “due to/due from other funds” (amounts due within one year),
“advances to/from other funds” (non-current portions of interfund lending/borrowing transactions), or
“loans to/from other funds” (long-term lending/borrowing transactions as evidenced by loan
agreements). Advances and loans to other funds are offset by a fund balance reserve in applicable
governmental funds to indicate they are not available for appropriation, and are not expendable
available financial resources.
Property, sales, use, and utility user taxes related to the current fiscal year are accrued as revenue and
accounts receivable and considered available if received within 60 days of year end. Federal and state
grants are considered receivable and accrued as revenue when reimbursable costs are incurred under
the accrual basis of accounting in the government-wide statement of net position. The amount
recognized as revenue under the modified accrual basis of accounting is limited to the amount that is
deemed measureable and available. The City considers these taxes available if they are received during
the period when settlement of prior fiscal year accounts payable and payroll charges normally occur.
35

Grants, entitlements or shared revenue is recorded as receivables and revenue in the general, special
revenue and capital project funds when they are received or susceptible to accrual. Notes receivables
represent individual loans, secured by property liens in favor of the City and the Redevelopment
Agency, made through various sources, including the Community Development Block Grant (CDBG)
and federal HOME housing programs. When repaid, these amounts are designated for purposes
allowed under the aforementioned reuse guidelines.
G. Allowance for Doubtful Accounts
Management has elected to record bad debts using the allowance method.
H. Capital Assets
Government-Wide Statements
Public domain (infrastructure) capital assets include roads, bridges, curbs and gutters, streets,
sidewalks, drainage systems, and lighting systems.
The accounting treatment of property, plant and equipment (capital assets) depends on whether the
assets are used in governmental fund operations or proprietary fund operations and whether they are
reported in the government-wide or fund financial statements.
Prior to July 1, 2003, governmental funds’ infrastructure assets were not capitalized, since then these
assets have been valued at estimated historical cost.
Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of
Activities, with accumulated depreciation reflected in the Statement of Net Position. Depreciation is
provided over the assets’ estimated useful lives using the straight-line method of depreciation. The
City capitalizes assets with an original cost greater than $5,000 and with a useful lifespan longer than
three years. No depreciation is recorded in the year of acquisition or in the year of disposition.
36

I. Capital Assets, Continued
The range of estimated useful lives by type of asset is as follows:
Buildings and improvements 5 – 50 years

Roadway improvements 50 years
Sidewalks, curbs and gutters 50 years
Storm drain pipes/structures 50 years
Traffic signal devices 5 – 40 years
Landscaping 30 years
Signage 25 years
Leasehold improvements 5 years
Machinery and equipment 3 – 5 years
Vehicles 3 years
Fund Financial Statements
In the fund financial statements, capital assets used in governmental fund operations are accounted for
as capital outlay expenditures of the governmental fund upon acquisition.
J. Compensated Absences
Compensated absences represent the vested portion of accumulate vacation and sick leave. In
governmental funds, the cost of vacation and sick leave benefits is recognized when payments are
made to employees. Upon separation, 100% of accrued vacation leave (up to a maximum of 400 hours)
and accrued comp time is paid and, depending on longevity, sick leave is paid out up to 50% of the
accrued amount.
K. Long-term Liabilities
In the fund financial statements, governmental fund types recognized bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as
other financing sources.
37

L. Equity Classification
Government-Wide Statements
Equity is classified as net position and is displayed in three components:
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 by external groups
such as creditors, grantors, contributors, or by laws or regulations of other governments or law through
constitutional provisions or enabling legislation.
Unrestricted net position – all other net position that do not meet the definition of “restricted” or “net
investment in capital assets.”
Fund Financial Statements
Governmental fund equity is classified as fund balance. Fund balance is classified as nonspendable,
restricted, committed, assigned or unassigned. Proprietary fund equity is classified the same as in the
government-wide statements. The classifications for governmental funds are defined as follows for the
City:
Nonspendable Fund Balance –

 Assets that will never convert to cash (prepaid items, inventory).
 Assets that will not convert to cash soon enough to affect the current period (long-term notes or
loans receivable).
 Resources that must be maintained intact pursuant to legal or contractual requirements (the
principal of an endowment).
Restricted Fund Balance –

 Resources that are subject to externally enforceable legal restrictions imposed by parties altogether
outside the government (Creditors, Grantors, Contributors and Other Governments).
 Resources that are subject to limitations imposed by law through constitutional provisions or
enabling legislation (Gas Tax).
38

Committed Fund Balance –

 Self-imposed limitations set in place prior to the end of the period. (Encumbrances, economic
contingencies and uncertainties).
 Limitation at the highest level of decision-making (Council) that requires formal action at the same
level to remove, done typically through resolution during the budget process.
Assigned Fund Balance –

 Amounts in excess of nonspendable, restricted, and committed fund balance in funds other than the
general fund automatically are reported as assigned fund balance and are done so by the City
Manager through the budget process.
Unassigned Fund Balance –

 Residual net resources
 Total fund balance in the general fund in excess of nonspendable, restricted, committed and
assigned fund balance (surplus).
 Excess of nonspendable, restricted, and committed fund balance over total fund balance (deficit).
When both restricted and unrestricted resources are available for use, it is the City’s policy to use
restricted fund balance resources first, followed by the unrestricted resources in the Committed and
Unassigned fund balances, as they are needed.
The general fund is the only fund that reports a positive unassigned fund balance. In other
governmental funds it is not appropriate to report a positive unassigned fund balance amount.
However, in governmental funds other than the general fund, if expenditures incurred for specific
purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be
necessary to report a negative unassigned fund balance in that fund.
39

M. Property Taxes
Property taxes in the State of California are administered for all local agencies at the county level and
consist of secured, unsecured and utility tax rolls. The following is a summary of major policies and
practices relating to property taxes:
Property Valuations are established by the Lake County Assessor for the secured and unsecured
property tax rolls; the utility property tax roll is valued by the State Board of Equalization. Under
the provision of Article XIII-A of the State Constitution (Proposition 13, adopted by the voters
on June 6, 1978), properties are assessed at 100% of full value. From this base assessment,
subsequent annual increases in valuation are limited to a maximum of two percent. However, an
increase to full value is allowed for property improvements or upon change in ownership.
Personal property is excluded from these limitations and is subject to annual reappraisal.
Tax Levies are limited to one percent of full assessed value which results in a tax rate of one
percent assessed valuation under the provisions of Proposition 13. Tax rates for voter-approved
indebtedness are excluded from this limitation.
Tax Levy Dates are attached annually on January 1, preceding the fiscal year for which the taxes
are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied
on both real and unsecured personal property as it exists at that time. Liens against real estate, as
well as the tax on personal property are not relieved by subsequent renewal or change in
ownership.
Tax Collections are the responsibility of the Lake County Treasurer-Tax Collector. Taxes and
assessments on secured and utility rolls, which constitute a lien against the property, may be paid
in two installments.
 The First is due on November 1 of the fiscal year and is delinquent if not paid by
December 10;
 The second is due on March 1 of the fiscal year and is delinquent if not paid by April 10.
Unsecured personal property taxes do not constitute a lien against property unless the taxes become
delinquent. Payments must be made in one installment, which is delinquent if not paid by August 31 of
the fiscal year. Significant penalties are imposed by the county for late payments. The City has elected
to receive the City’s portion of the property taxes from the county under the county Teeter Bill
program. Under this program, the City receives 100% of the City’s share of the levied property taxes in
periodic payments with the county assuming the responsibility for the delinquencies.
40

N. Property Taxes, Continued
Property Tax Administration Fees – the state of California FY 90-91 Budget Act authorized
counties to collect an administrative fee for collection and distribution of property taxes.
Tax Levy Apportionments – due to the nature of the City-wide maximum levy, it is not possible to
identify general-purpose tax rates for specific entities. Under State legislation adopted subsequent
to the passage of Proposition 13, apportionments to local agencies are made by the county’s
auditor-controller based primarily on the ratio that each agency represented of the total City-wide
levy for the three fiscal years prior to fiscal year 1979.
O. Interfund Transfers
Resources are reallocated between funds by reporting them as interfund transfers. For the purposes of
the Statement of Activities, all interfund transfers between individual governmental funds have been
eliminated.
P. Reclassifications
Certain amounts have been reclassified to provide for comparable results on a year to year basis.
Q. Budgetary Information
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 proposed draft budget for the fiscal year
commencing July 1 of the next fiscal year. The budget includes proposed expenditures and
the means of financing them.
2. If use of fund balance is recommended by the City Manager, resources to be used will be in
the following order:
a. unassigned fund balance
b. assigned
c. committed
3. The City Council reviews the proposed budget at special scheduled sessions which are open
to the public. The Council also conducts a public hearing on the proposed budget to obtain
comments from interested persons.
4. Prior to July 1, the budget is to be adopted by resolution of the City Council.
41

Q. Budgetary Information, Continued
5. From the effective date of the budget, which is adopted and controlled at the fund level, the
amounts stated therein as proposed expenditures become appropriations to the various City
funds and departments. The City Council may amend the budget by minute action during the
fiscal year. The City Manager may authorize transfers from one object or purpose to another
within the same fund, and between departments within the General Fund. All appropriations
lapse at year end unless encumbered and carried forward upon the approval of the City
Manager.
Budgets are adopted for all fund types and are reported on a basis consistent with generally accepted
accounting principles. Budgeted amounts presented are as originally adopted and as further amended
by the City Council.
R. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related
to pensions, and pension expense, information about the fiduciary net position of the Local
Government of Example's California Public Employees' Retirement System (CaIPERS) plans (Plans)
and additions to/deductions from the Plans' fiduciary net position have been determined on the same
basis as they are reported by CaIPERS. 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.
42

2. CASH AND INVESTMENTS
The City follows the practice of pooling cash and investments of all funds except for the restricted
funds required to be held by outside custodians, fiscal agents or trustees under the provisions of bond
indentures. Cash and investments as of June 30, 2018, are classified in the accompanying financial
statements as follows:
Maturities (in years) Fair

<1 1 to 3 3 to 5 Deposits Market Value
Cash equivalents and investments pooled
Pooled cash, at fair value
Cash in bank $ - $ - $ - $ 4,701,827 $ 4,701,827
Petty cash - - - 580 580
Total pooled items - - - 4,702,407 4,702,407
Pooled investments, at fair value
Interest obligations:
Cash equivalent 1,012,543 - - - 1,012,543
State of California Local Agency Investment Fund 6,388,292 - - - 6,388,292
Total pooled investments - interest obligations 7,400,835 - - - 7,400,835
Total cash equivalents and investments pooled $ 7,400,835 $ - $ - $ 4,702,407 $ 12,103,242
Amounts reported in:
Governmental activities $ 10,924,295
Fiduciary activities 1,178,947
Total $ 12,103,242
Collateral and Categorization Requirements
At the fiscal year end, the City’s carrying amount of demand deposits was $4,701,827 and the bank
account balance was $4,697,461. The difference represents outstanding checks and deposits in transit.
Of the total deposit balance, $250,000 was insured by Federal Depository Insurance Corporation
(FDIC), the remaining amount of $790,125 was collateralized in accordance with California
Government Code Section 53600-53609.
43

2. CASH AND INVESTMENTS, Continued
Interest Rate Risk
As a means of limiting its exposure to fair value losses arising from rising interest rates, the City has a
formal policy which limits City purchased investments to securities having a remaining maturity date
from time of purchases to five years or less.
Credit Risk
The City's investment policy limits investments in mutual and money market funds to the top two
ratings issued by nationally recognized statistical ratings organizations. Investments in obligations
explicitly guaranteed by the U.S. Government are not considered to have credit risk and do not require
the disclosure of credit quality. The Local Agency Investment Fund is unrated. The First American
Government Obligation Market Fund was rated AAA.
Concentration of Credit Risk
Investments explicitly guaranteed by the U.S. government and investments in mutual funds, and
external investment pools such as those held by the City are excluded from concentration of credit risk
disclosures.
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty,
the City will not be able to recover the value of its investments or the collateral securities that are in the
possession of an outside party. Investments in mutual funds and external investment pools are not
subject to custodial credit risk because these investments are not evidenced by specific securities.
Fair Value Measurements - Investments.
The City categorizes its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure the fair value of the asset. Level 1 inputs are quoted market prices in active markets for
identical assets; Level 2 inputs are significant other observable inputs, and Level 3 inputs are
significant unobservable inputs. The City has no separately held investments and its funds are held
primarily by the Bond Trustee as to bond proceeds and the Local Agency Investment Fund (LAIF) of
the State of California. The LAIF and unspent bond proceeds held by Trustee are valued by pricing
methods viewed as Level 1 inputs.
Fair Value Measurements - Land Held for Resale.
The land held for resale by the City represents primarily properties underlying foreclosed housing
loans and are valued at Level 3 inputs based upon other unobservable inputs.
44

2. CASH AND INVESTMENTS, Continued
Participation in an External Investment Pool
The City is a voluntary participant in the California Local Agency Investment Fund (LAIF), which is
regulated by California Government Code Section under the oversight of the Local Investment
Advisory Board (Board). The Board consists of five members as designated by state statue, and is
chaired by the State Treasurer who is responsible for the day to day administration of LAIF. The
balance available for withdrawal is based on the accounting records maintained by LAIF, which are
recorded on an amortized cost basis, which is different from the fair value of the City’s position in the
LAIF pool. The State Treasurer determines fair value on its investment portfolio based on market
quotations for those securities where market quotations are readily available. As of June 30, 2018, the
City’s investment in LAIF was $6,388,292. The total amount invested by all public agencies at that
date was $22.71 billion. LAIF is part of the California Pooled Money Investment Account (PMIA),
which at June 30, 2018 has a balance of $75.44 billion. Financial Statements of LAIF and PMIA may
be obtained from the California Treasurer’s web site at www.treasurer.ca.gov.
3. ACCOUNTS RECEIVABLE
Accounts receivable consisted of the following at June 30, 2018:
Receivables
Governmental Activities
Taxes $ 1,276,532
Interest 30,313
Other receivables 619,954
$ 1,926,799
These amounts resulted in the following concentrations in receivables:
Other Governments 66%

Financial 2%
Individuals/Business 32%
Amounts do not indicate a significant concentration (greater than 25%) with any single individual,
business or agency.
45

4. LOANS AND NOTES RECEIVABLE
Through the City’s various housing rehabilitation funds, first-time home buyer’s funds, and
business/economic development loan funds, the City has loaned funds to qualifying individuals and
businesses. Interest rates vary depending on the terms of the loan. Interest is accrued on the loans that
bear interest.
Loans and notes receivable for the year ended June 30, 2018, consisted of the following:
Beginning Ending
Description July 1, 2017 Additions (Deletions) June 30, 2018
Major governmental funds:
CDBG Code Enforcement $ 2,380,724 $ 7,848 $ (190,211) $ 2,198,361
HOME RLF 8,360,534 1,194 (47,240) 8,314,488
Nonmajor governmental funds:
Low and Moderate Income Housing 869,067 6,188 (12,080) 863,174
EDBG RLF 121,008 4,476 (8,651) 116,834
Total loans receivable $ 11,731,333 $ 19,706 $ (258,182) $ 11,492,857
46

5. CAPITAL ASSETS
Governmental capital asset activity for the year ended June 30, 2018, was as follows:
Balance Adjustments/ Balance

Additions Deletions
July 1, 2017 Reclassifications June 30, 2018
Nondepreciable assets:
Land $ 7,011,000 - - - $ 7,011,000
Construction in progress 437,462 - - 437,462
Total non depreciable assets 7,448,462 - - - 7,448,462
Depreciable assets:
Buildings & Improvements 2,375,277 - - - 2,375,277
Equipment 802,805 3,229 - - 806,034
Vehicles 1,792,895 56,148 - 62,381 1,911,424
Infrastructure 9,888,788 - - - 9,888,788
Total depreciable assets 14,859,765 59,377 - 62,381 14,981,523
Total assets 22,308,227 59,377 - 62,381 22,429,985
Accumulated depreciation
Buildings (1,286,966) (79,176) - (79,178) (1,445,320)
Equipment (604,474) (30,719) - (32,840) (668,033)
Vehicles (1,013,383) (146,390) - (151,931) (1,311,704)
Infrastructure (2,356,643) (329,626) - (329,625) (3,015,894)
Total accumulated depreciation (5,261,466) (585,911) - (593,574) (6,440,951)
Net depreciable assets 9,598,299 (526,534) - (531,193) 8,540,572
Total net capital assets $ 17,046,761 $ (526,534) $ - $ (531,193) $ 15,989,034
Depreciation expense of $585,911 was allocated in the Statement of Activities as follows:
General governement $ 256,285

Public works and streets 329,626
$ 585,911
47

6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued liabilities consisted of the following at June 30, 2018:
Governmental
Activities
Accounts payable $ 467,931
Accrued payroll and related liabilities 193,342
Total $ 661,273
These amounts resulted in the following concentrations in payables:
Vendors 71%
Employees 29%
Amounts do not indicate a significant concentration (greater than 25%) with any single vendor or
employee.
7. LONG TERM LIABILITIES
The following is a summary of changes in long-term liabilities for the year ended June 30, 2018:
Beginning
Balance Ending Balance Due within
Governmental Activities 7/1/2017 Additions Reductions 6/30/2018 One Year
Claims $ 122,934 $ - $ (59,371) $ 63,563 $ -
Compensated Absences 296,731 21,368 - 318,099 100,000
Total $ 419,665 $ 21,368 $ (59,371) $ 381,662 $ 100,000
Compensated Absences
The City records employee absences, such as vacation, illness, deferred overtime, and holidays, for
which it is expected that employees will be paid as compensated absences. The governmental activities
compensated absences balance at June 30, 2018 was $318,099 with $100,000 expected to be paid
within a year and to be liquidated by the general fund.
48

8. NET POSITION/FUND BALANCES
Restricted Net Position Detail

Governmental
Activities
Restricted for:
Capital projects $ 9,005,400
Highways and streets 1,565,546
Public safety 375,765
Community promotion 87,503
Affordable housing 635,667
Total $ 11,669,881
Restricted balances are for the same purposes as fund balance restrictions because external restriction
requirements are the same. See descriptions of the restrictions below.
Fund Balance Detail
Restricted:
Capital projects $ 9,005,400
Highways and streets 1,565,546
Public safety 375,765
Community promotion 87,503
Affordable housing 635,667
Total restricted 11,669,881
Committed:
Econcomic unertainties 207,132
Total committed 207,132
Assigned:
Self insurance 150,000
Total assigned 150,000
Unassigned:
General fund 1,038,767
Grants (771,305)
Total unassigned 267,462
Total fund balance $ 12,294,475
49

8. NET POSITION/FUND BALANCES, Continued
The following describe the purpose of each restricted, committed, assigned, and unassigned category
used by the City:
Restricted
 Capital projects – represents amounts restricted for capital projects.

 Highways and streets – represents amounts restricted for use on maintenance and construction of
City streets and highways.
 Public safety – represents amounts restricted for use on public safety.
 Community promotion – represents amounts restricted for use on community promotion.
 Affordable housing – represents amounts restricted for use on affordable housing.
Committed
 Economic uncertainties – represents amounts designated by the City Council for economic
uncertainties
Assigned
 Self insurance – represents amounts assigned by management for self-insurance.
Unassigned
 Grants – deficit fund balances in Grants special revenue fund
50

8. NET POSITION/FUND BALANCES, Continued
Fund Deficits
Deficit fund balances consisted of the following:
Non-Major Special Revenue Funds

Deficit
Fund Name Amount Discussion/Explanation
Grants $ (771,305) The deficit fund balance occurred due to the spending of funds prior to
the receipt of revenues (cost reimbursements). The Fund balance will be
restored in the near future as revenues are received.
51

9. INTERFUND TRANSACTIONS AND INTERFUND BORROWING
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to
the fund that statute or budget requires to expend them, and (2) use unrestricted revenues collected in
the general fund to finance various programs accounted for in other funds in accordance with
budgetary authorizations.
Transfers consisted of the following at June 30, 2018:
Transfers In Transfers Out

Governmental Funds
Major Funds:
General Fund $ 190,635 $ -
Measure P Police - 41,322
Series A Infrastructure Bond Proceeds 514 -
Series B Infrastructure Bond Proceeds 173 847,751
Roads Measure V - 57,967
Grants 57,967 -
Total Major Funds 249,289 947,040
Nonmajor Funds:
Special Revenue Funds
Low and Moderate Income Housing 847,751 -
Police Grants - 100,000
Recycle - 50,000
Total Nonmajor Funds 847,751 150,000
Total Governmental Funds 1,097,040 1,097,040
Total $ 1,097,040 $ 1,097,040
The Due to other funds amount of $998,360 in the Grants Capital Projects Fund came from the Series
A Infrastructure Bond Capital Projects Fund for amounts expended on advance grants for joint
projects.
52

10. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; errors and omissions; and natural disasters for which the City carries insurance.
The City is a member of the Public Agency Risk Sharing Authority of California- (PARSAC), a joint
powers authority, which provides joint protection programs for public entities covering automobile,
general liability, errors and omission losses, property and workers compensation claims. Under the
program, the City has a$ 50,000 general liability retention limit similar to a deductible with the
Authority being responsible for losses above that amount up to $ 1 million. The Authority carries an
excess commercial liability policy of $34 million in excess of its $ 1 million retention limit to cover
losses through affiliated risk management authorities. The Authority also provides one billion dollars
aggregate per occurrence property coverage to its members with such coverage provided by purchased
insurance.
The Authority covers workers compensation claims up to its self-insurance limit of$ 500,000. The
Local Agency Workers Compensation Excess Pool provides excess coverage to statutory limits. The
City pays an annual premium to the Authority; the City may share in surplus revenues or may be
required to pay additional assessments based upon the Authority's operating results. The City has a
$50,000 workers compensation retention deductible with the Authority being responsible for losses
above that amount. Financial statements of Public Agency risk Sharing Authority of California may be
obtained from its administrative offices located at 1525 Response Road, Suite One, Sacramento,
California, 95815.
Liabilities of the City are reported when it is probable that a loss has occurred and the amount of the
loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but
not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount
as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage
awards. Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent
claim settlement trends (including frequency and amount of pay-outs), and other economic and social
factors. The estimate of the claims liability also includes amounts for incremental claim adjustment
expenses related to specific claims and other claim adjustment expenses regardless of whether
allocated to specific claims. Estimated recoveries, for example from salvage or subrogation, are
another component of the claims liability estimate. Settlements have not exceeded coverage for each of
the past three fiscal years.
Changes in the balances of claims liabilities during the past two years are as follows:
6/30/2018 6/30/2017
Unpaid claims, beginning of fiscal year $ 122,934 $ 75,030
Incurred claims (including IBNRs) - 127,564
Claim reductions (59,371) (79,660)
Unpaid Claims, end of fiscal year $ 63,563 $ 122,934
53

11. PUBLIC EMPLOYEE RETIREMENT PLAN
Plan Description
The City contributes to the California Public Employees Retirement System (CalPERS), an agent
multiple-employer public employee defined benefit pension plan. PERS provides retirement and
disability benefits, annual cost-of-living adjustments, and death benefits to plan members and
beneficiaries. PERS acts as a common investment and administrative agent for participating public
entities within the State of California. Benefit provisions and all other requirements are established by
state statue and city ordinance. Copies of PERS annual financial report may be obtained from the
Executive Office, 400 “P” Street, Sacramento, California, 95814.
General Information about the Pension Plans
Plan Descriptions - All qualified permanent and probationary employees are eligible to participate in
the Local Government's separate Safety (police) and Miscellaneous (all other) Employee Pension
Plans, cost-sharing multiple employer defined benefit pension plans administered by the California
Public Employees' Retirement System (CaIPERS). Benefit provisions under the Plans are established
by State statute and Local Government resolution. CalPERS issues publicly available reports that
include a full description of the pension plans regarding benefit provisions, assumptions and
membership information that can be found on the CalPERS website.
Benefits Provided - The CalPERS provides retirement, disability and death benefits. Retirement
benefits are defined as 2.5 percent of the employees final 12 months average compensation times the
employee's years of service (2.0 percent for safety employees) Employees with 10 years of continuous
are eligible to retire at age 55 (age 50 for safety employees) Employees are eligible for service-related
disability benefits regardless of the length of service. Five years of service is required for non-service
related disability eligibility. Disability benefits are determined in the same manner as retirement
benefits but are payable immediately without an actuarial reduction. Pre-retirement death benefits
equal an employee's final full-year salary. Both plans provide for a 2 percent Cost of Living
Adjustment (COLA). The public safety plan is closed to new entrants.
54

11. PUBLIC EMPLOYEE RETIREMENT PLAN (CONTINUED)
The Plans' provisions and benefits in effect at June 30, 2018, are summarized as follows:
Miscellaneous PEPRA Miscellaneous

Prior to On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 2.0% @ 55 2% @ 62
Benefit vesting schedule 5 years service 5 years service
Benefit payments monthly for life monthly for life
Retirement age 50 - 63 52 - 67
Monthly benefits, as a % of eligible compensation 1.426% - 2.418% 1.0% to 2.5%
Required employee contribution rates 7% 6.25%
Required employer contribution rates 8.418% 6.533%
Safety Police PEPRA Safety Police

On or after On or after
Hire date January 1, 2013 January 1, 2013
Benefit formula 3% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service
Benefit payments monthly for life monthly for life
Retirement age 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 3% 2.0% to 2.7%
Required employee contribution rates 9.0% 12.0%
Required employer contribution rates 18.615% 11.990%
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 both Plans
are determined annually on an actuarial basis as of June 30 by CaIPERS. 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 Local Government is
required to contribute the difference between the actuarially determined rate and the contribution rate
of employees.
For the year ended June 30, 2018, the contributions recognized as part of pension expense for each
Plan were as follows:
PEPRA - PEPRA
Miscellaneous Safety Miscellaneous Safety
Contributions - employer $ 77,531 $ 175,408 $ 46,883 $ 54,411
Contributions - employee (paid employer) $ 64,471 $ 84,807 $ 44,853 $ 52,186
55

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to
Pensions
As of June 30, 2017, the Local Government reported net pension liabilities for its proportionate shares
of the net pension liability of each Plan as follows:
Proportionate Share
of Net Pension Liability
Miscellaneous $ 1,958,779
Safety 5,319,094
Total Net Pension Liability $ 7,277,873
The Local Government's net pension liability for each Plan is measured as the proportionate share of
the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2017,
and the total pension liability for each Plan used to calculate the net pension liability was determined
by an actuarial valuation as of June 30, 2016 rolled forward to June 30, 2017 using standard update
procedures. The Local Government's proportion of the net pension liability was based on a projection
of the Local Government's long-term share of contributions to the pension plans relative to the
projected contributions of all participating employers, actuarially determined. The Local Government’s
proportionate share of the net pension liability for each Plan as of June 30, 2018 and 2017 was as
follows:
Miscellaneous Safety
Proportion - June 30, 2017 0.04870% 0.09358%

Proportion - June 30, 2018 0.04969% 0.08902%
Change - Increase (Decrease) 0.00099% -0.00456%
For the year ended June 30, 2018, the City recognized a pension expense of $511,188. At June 30,
2018, the Local Government reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Deferred Outflows Deferred Inflow
of Resources of Resources
Differences between expected and actual experiences $ 1,076 $ -
Changes in assumptions 972,895 -
Differences between projected and actual investment earnings 232,418 -
Differences between the employer's contributions and proportionate
share of the contributions 296,343 51,963
Change in employer's proportion 174,109 116,151
Pension contributions subsequent to measurement date 600,550 -
Total $ 2,277,391 $ 168,114
56

The $600,550 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, 2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized as pension expense as follows:
Year Ended
30-Jun
2018 $ 459,132
2019 727,256
2020 458,980
2021 (136,641)
2022 -
Thereafter -
Actuarial Assumptions
The total pension liabilities in the June 30, 2017 actuarial valuations were determined using the
following actuarial assumptions:
Actuarial Assumptions
Actuarial cost method Entry-age normal cost method
Actuarial assumptions:
Discount rate 7.15%
Inflation 2.75%
Salary increases Varies by entry age and service
Mortality Rate Table Derived using CalPERS’ Membership Data for all Funs
Post-retirement benefit Contract COLA up to 2.75% until purchasing power
increase protection allowance floor on purchasing power applies,
2.75% thereafter.
The underlying mortality table used was developed based on CalPERS’ specific data. The table
includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details,
please refer to the 2014 experience study report.
All other actuarial assumptions used in the June 30, 2014 valuation were based on the results of an
actuarial experience study for the fiscal years 1997 to 2011, including updates to salary increase,
mortality and retirement rates. The Experience Study can be obtained at CalPERS’ website under
Forms and Publications.
57

Discount Rate - The discount rate used to measure the total pension liability was 7.15 percent. To
determine whether the municipal bond rate should be used in the calculation of the discount rate for
each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be
different from the actuarially assumed discount rate. The tests revealed the assets would not run out.
Therefore, the current 7.15 percent discount rate is appropriate and the use of the municipal bond rate
calculation is not deemed necessary. The long-term expected discount rate of 7.15 percent is applied to
all plans in the Public Employees' Retirement Fund (PERF). The cash flows used in the testing were
developed assuming that both members and employers will make their required contributions on time
and as scheduled in all future years. The stress test results are presented in a detailed report called
"GASB Crossover Testing Report" that can be obtained at CalPERS website under the GASB 68
section.
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, staff took into account both short-term and
long-term market return expectations as well as the expected pension fund (PERF) cash flows. Taking
into account historical returns of all the Public Employees Retirement Funds' asset classes (which
includes the agent plan and two cost-sharing plans or PERF A, B, and C funds), expected compound
(geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 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 PERF fund. The expected rate of return was
set by calculating the 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 rounded down to the
nearest one quarter of one percent.
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. The
target allocation shown was adopted by the Board effective on July 1, 2014.
58

Current Target Real Return Real Return

Asset Class Allocation Years 1 - 101 Year 11+2
Global Equity 47.0% 4.90% 5.38%
Global Fixed Income 19.0% 0.80% 2.27%
Inflation Sensitive 6.0% 0.60% 1.39%
Private Equity 12.0% 6.60% 6.63%
Real Estate 11.0% 2.80% 5.21%
Infrastructure and Forestland 3.0% 3.90% 5.36%
Liquidity 2.0% -0.55% -90.00%
(1) An expected inflation of 2.5% used for this period.

(2) An expected inflation of 3.0% used for this period.
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 Plan,
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:
Current
1% Decrease Discount Rate 1% Increase
(6.15%) (7.15%) (8.15%)
Net Pension Liability as of
June 30, 2017
Miscellaneous $ 3,054,123 $ 1,958,779 $ 1,051,594
Safety 7,701,886 5,319,094 3,371,282
Total $ 10,756,009 $ 7,277,873 $ 4,422,876
Pension Plan Fiduciary Net Position - Detailed information about each pension plan's fiduciary net
position is available in the separately issued CalPERS financial reports.
59

12. COMMITMENTS AND CONTINGENCIES
Grants and Allocations
The City receives funding from a number of federal, state and local grant programs, principally
Community Development Block Grants (CDBG). These programs are subject to financial and
compliance review by grantors. Expenditures, if any, which may be disallowed by the granting
agencies, cannot be determined at this time. The City does not expect the undeterminable amounts of
disallowed expenditures, if any, to materially affect the financial statements. Receipt of these federal,
state and local grant revenues is not assured in the future.
13. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT

AGENCY
On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that
provides for the dissolution of all redevelopment agencies in the State of California. This action
impacted the reporting entity of the City of Clearlake that previously had reported a redevelopment
agency within the reporting entity of the City as a blended component unit.
The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of
local government will agree to serve as the “successor agency” to hold the assets until they are
distributed to other units of state and local government. On January 10, 2012, the City Council elected
to become the Successor Agency for the former redevelopment agency in accordance with the Bill as
part of City resolution number 2441 (2012).
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of
California cannot enter into new projects, obligations or commitments. Subject to the control of a
newly established oversight board, remaining assets can only be used to pay enforceable obligations in
existence at the date of dissolution (including the completion of any unfinished projects that were
subject to legally enforceable contractual commitments).
In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary
to pay the estimated annual installment payments on enforceable obligations of the former
redevelopment agency until all enforceable obligations of the prior redevelopment agency have been
paid in full and all assets have been liquidated.
The Bill directs the State Controller of the State of California to review the propriety of any transfers
of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011.
If the public body that received such transfers is not contractually committed to a third party for the
expenditure or encumbrance of those assets, the State Controller is required to order the available
assets to be transferred to the public body designated as the successor agency by the Bill.
60

AGENCY, Continued
Management believes, in consultation with legal counsel, that the obligations of the former
redevelopment agency due to the City are valid enforceable obligations payable by the successor
agency trust under the requirements of the Bill. The City’s position on this issue is not a position of
settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that
a legal determination may be made at a later date by an appropriate judicial authority that would
resolve this issue unfavorably to the City.
In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on
December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to
operate as a legal entity as of February 1, 2013. Prior to that date, the final seven months of the activity
of the redevelopment agency continued to be reported in the governmental funds of the City included
in the fund financial statements as Former Redevelopment Agency Special Revenue Fund and
Low/Moderate Income Housing Fund.
After the date of dissolution, the assets and activities of the dissolved redevelopment agency are
reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City. The
transfer of the assets and liabilities of the former redevelopment agency as of February 1, 2012
(effectively the same date as January 31, 2012) from governmental funds of the City to fiduciary funds
was reported in the governmental funds as an extraordinary loss (or gain) in the governmental fund
financial statements. The receipt of these assets and liabilities as of January 31, 2012 was reported in
the private-purpose trust fund as an extraordinary gain (or loss).
Loans and Notes Receivable
Through the City’s various housing rehabilitation funds and first-time home buyer’s funds, the City
has loaned funds to qualifying individuals and businesses. Interest rates vary depending on the terms
of the loan. Interest is accrued on the loans that bear interest. Some of these loans were transferred to
the successor agency and are reported in the respective trust fund.
Loans and notes receivable for the fiscal year 2018 consisted of the following:
Redevelopment Successor Private Purpose Trust Notes Receivable

Beginning Ending
July 1, 2017 Additions Deletions June 30, 2018
Redevelopment Facade Enhancement Loans $ 5,746 $ - $ - $ 5,746
Total loans/notes receivable $ 5,746 $ - $ - $ 5,746
61

AGENCY, Continued
The following is a summary of changes in long-term liabilities for the year ended June 30, 2018:
Redevelopment Successor Private Purpose Trust

Debt Service Activity
Balance Balance Due within
Fiduciary activities: July 1, 2017 Additions Retirements June 30, 2018 one year
2006 Series A RDA Tax Exempt Bonds $ 11,105,000 $ - $ (11,105,000) $ - $ -
2006 Series B RDA Tax Exempt Bonds 3,075,000 (3,075,000) - -
2017 Taxable Refunding Revenue Bonds - 13,275,000 - 13,275,000 650,000
Less: Bond discount - (338,150) - (338,150) (17,797)
Total fiduciary activities $ 14,180,000 $ 12,936,850 $ (14,180,000) $ 12,936,850 $ 632,203
2017 Taxable Refunding Revenue Bonds
In December 2017, the Clearlake Successor Agency sold $13,275,000 in 2017 Taxable Refunding
Bonds in order to refund its 2006A and 20068 Series bonds at a discount of $338,150. The Agency
issued the refunding bonds in order to reduce the debt service payments on the debt by $2,944,271
over the next 19 years and to recognize an economic gain of $846,052 (the difference between the net
present values of the payments on the old and the new debt. Payments are made beginning October 1,
2018 and continue through October 1, 2036.
62

AGENCY, Continued
Future debt service for Fiduciary Activities at June 30, 2018, is as follows:
2017 Taxable
Refunding Bonds
June 30, Principal Interest
2019 $ 650,000 $ 346,005
2020 545,000 421,131
2021 555,000 410,912
2022 560,000 399,813
2023 575,000 386,513
2024-2028 3,150,000 1,685,813
2029-2033 3,720,000 1,122,437
2034-2037 3,520,000 356,525
$ 13,275,000 $ 5,129,149
Due within one year $ 650,000 $ 346,005

Due after one year 12,625,000 4,783,144
$ 13,275,000 $ 5,129,149
14. NEW ACCOUNTING PRONOUNCEMENTS
The GASB has issued Statement No. 75, “Accounting and Financial Reporting for Postemployment
Benefits Other Than Pensions”. The primary objective of this Statement is to improve accounting and
financial reporting by state and local governments for postemployment benefits other than pensions
(other postemployment benefits or OPEB). It also improves information provided by state and local
governmental employers about financial support for OPEB that is provided by other entities. This
Statement results from a comprehensive review of the effectiveness of existing standards of accounting
and financial reporting for all postemployment benefits (pensions and OPEB) with regard to providing
decision-useful information, supporting assessments of accountability and interperiod equity, and
creating additional transparency. This Statement replaces the requirements of Statements No. 45,
“Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions”, as amended, and No. 57, “OPEB Measurements by Agent Employers and Agent Multiple-
Employer Plans”, for OPEB. Statement No. 74, “Financial Reporting for Postemployment Benefit
Plans Other Than Pension Plans”, establishes new accounting and financial reporting requirements for
OPEB plans. The provisions in Statement 75 are effective for fiscal years beginning after June 15,
2018. The City implemented during fiscal year ended June 30, 2018.
63

14. NEW ACCOUNTING PRONOUNCEMENTS, CONTINUED
The GASB has issued Statement No. 81, "Irrevocable Split-Interest Agreements." The requirements of
this Statement will take effect for financial statements starting with the fiscal year that ends December
31, 2017. This statement had no effect on these financial statements.
The GASB has issued Statement No. 82, "Pension Issues-an amendment of GASB Statements No. 67,
No. 68, and No. 73." The requirements of this Statement will take effect for financial statements
starting with the fiscal year that ends June 30, 2017, except for the requirements of this Statement for
the selection of assumptions in a circumstance in which an employer's pension liability is measured as
of a date other than the employer's most recent fiscal year-end. In that circumstance, the requirements
for the selection of assumptions will take effect for that employer in the first reporting period in which
the measurement date of the pension liability is on or after June 15, 2017. This statement had no effect
on these financial statements.
The GASB has issued Statement No. 83, "Certain Asset Retirement Obligations." The requirements of
this Statement are effective for reporting periods beginning after June 15, 2018. Earlier application is
encouraged. This Statement addresses accounting and financial reporting for certain asset retirement
obligations (AROs). An ARO is a legally enforceable liability associated with the retirement of a
tangible capital asset. A government that has legal obligations to perform future asset retirement
activities related to its tangible capital assets should recognize a liability based on the guidance in this
Statement. The City will implement this statement, as applicable, to its financial statements for the
year ending June 30, 2019.
The GASB has issued Statement No. 84, "Fiduciary Activities." The requirements of this Statement
are effective for reporting periods beginning after December 15, 2018. Earlier application is
encouraged. The objective of this Statement is to improve guidance regarding the identification of
fiduciary activities for accounting and financial reporting purposes and how those activities should be
reported. The City will implement this statement, as applicable, to its financial statements for the year
ending June 30, 2020.
The GASB has issued Statement No. 85, "Omnibus 2017." The provisions of this Statement are
effective for periods beginning after June 15, 2017. Earlier application is encouraged. The objective of
this Statement is to address practice issues that have been identified during implementation and
application of certain GASB Statements. This Statement addresses a variety of topics including issues
related to blending component units, goodwill, fair value measurement and application, and
postemployment benefits (pensions and other postemployment benefits [OPEB]). This statement had
no effect on these financial statements.
64

14. NEW ACCOUNTING PRONOUNCEMENTS, CONTINUED
The GASB has issued Statement No. 86, "Certain Debt Extinguishment Issues.” The requirements of
this Statement are effective for reporting periods beginning after June 15, 2017. Earlier application is
encouraged. The primary objective of this Statement is to improve consistency in accounting and
financial reporting for in-substance defeasance of debt by providing guidance for transactions in which
cash and other monetary assets acquired with only existing resources—resources other than the
proceeds of refunding debt—are placed in an irrevocable trust for the sole purpose of extinguishing
debt. This Statement also improves accounting and financial reporting for prepaid insurance on debt
that is extinguished and notes to financial statements for debt that is defeased in substance. This
statement had no effect on these financial statements.
The GASB has issued Statement No. 87, "Leases." The requirements of this Statement are effective
for reporting periods beginning after December 15, 2019. The objective of this Statement is to better
meet the information needs of financial statement users by improving accounting and financial
reporting for leases by governments. This Statement increases the usefulness of governments’ financial
statements by requiring recognition of certain lease assets and liabilities for leases that previously were
classified as operating leases and recognized as inflows of resources or outflows of resources based on
the payment provisions of the contract. It establishes a single model for lease accounting based on the
foundational principle that leases are financings of the right to use an underlying asset. Under this
Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset,
and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby
enhancing the relevance and consistency of information about governments’ leasing activities. The
City will implement this statement, as applicable, to its financial statements for the year ending June
30, 2021.
65
66
REQUIRED SUPPLEMENTARY INFORMATION
67
Required Supplementary Information - Schedule of Contributions
Last 10 Fiscal Years*
Miscellaneous Plan 2017 2016 2015
Contractually required contribution (actuarially determined) $ 233,738 $ 188,641 $ 150,162
Contributions in relation to the actuarially determined

contributions (233,738) (188,641) (150,162)
Contribution deficiency (excess) $ - $ - $ -
Covered-employee payroll $ 1,739,148 $ 1,082,692 $ 921,163
Contribution as a percentage of covered-employee payroll 13.44% 17.42% 16.30%
Safety Plan
Contractually required contribution (actuarially determined) $ 366,812 $ 381,833 $ 356,688
Contributions in relation to the actuarially determined

contributions (366,812) (381,833) (356,688)
Contribution deficiency (excess) $ - $ - $ -
Covered-employee payroll $ 1,195,102 $ 1,417,512 $ 1,269,022
Contribution as a percentage of covered-employee payroll 30.69% 26.94% 28.11%
Notes to Schedule
1) Covered employee payroll represents compensation earnable and pensionable compensation. Only
compensation earnable and pensionable compensation that would possibly go into the determination of
retirement benefits are included.
*Due to a change in CalPERS reporting information, only the last three years were available. Additional
years will be presented as they become available.
68
Required Supplementary Information - Schedule of the City's Proportionate
Share of the Net Pension Liability
Last 10 Fiscal Years*
Miscellaneous Pan 2017 2016 2015

Plan's Proportion of the Net Pension Liability/(Asset) 0.04969% 0.04870% 0.04772%
Plan's Proportionate Share of the Net Pension
Liability/(Asset) $ 1,958,779 $ 1,691,824 $ 1,309,012
Plan's Covered-Employee Payroll $ 1,739,148 $ 807,077 $ 924,040
Liability/(Asset) as a Percentage of its Covered-Employee
Payroll 112.63% 209.62% 141.66%
Plan's Proportionate Share of the Fiduciary Net Position as a
Percentage of the Plan’s Total Pension Liability 75.40% 75.96% 80.28%
Plan's Proportionate Share of Aggregate Employer Contribution $ 227,194 $ 199,120 $ 184,313
Safety Plan
Plan's Proportion of the Net Pension Liability/(Asset) 0.08902% 0.09358% 0.10113%
Liability/(Asset) $ 5,319,095 $ 4,846,539 $ 4,167,159
Plan's Covered-Employee Payroll $ 1,195,102 $ 1,246,571 $ 1,849,155
Liability/(Asset) as a Percentage of its Covered-Employee
Payroll 445.07% 388.79% 225.47%
Plan's Proportionate Share of the Fiduciary Net Position as a
Percentage of the Plan’s Total Pension Liability 68.77% 68.44% 72.20%
Plan's Proportionate Share of Aggregate Employer Contribution $ 404,145 $ 363,157 $ 368,171
Notes to Schedule
1) Covered employee payroll represents compensation earnable and pensionable compensation. Only
compensation earnable and pensionable compensation that would possibly go into the determination of
retirement benefits are included.
*Due to a change in CalPERS reporting information, only the last three years were available. Additional years
will be presented as they become available.
69
70
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
71
72
NON-MAJOR SPECIAL REVENUE FUNDS
Fund Description
Low and Moderate Income Housing Accounts for activities realted to housing activities for the Former
City of Clearlake Redevelopment Agency.
Park Development Fund for Highlands Park recent renovation of the building to be
used as a County Visitor Center. The Visitor Center has been
completed and is being operated by the Clearlake Chamber of
Commerce.
PEG The Public Education and Government fund accounts for the
costs of operating and maintaining the local channel TV8. The
City of Clearlake is the lead agency for PEG.
Police Grants Supplemental Law Enforcement Services Fund collects state grant
funds to be used for police services.
Police ABC The City does not currently receive ABC Funds. but uses this
fund for AB 109 Grant received from the Local Community
Corrections Partnership (LCCP). These funds can be used to
cover costs incurred by the Police Department to deliver
specific services as outlined in each years application for funds
through the LCCP.
Police Asset Seizure To account for monies obtained from seized assets of criminal
activities. The funds are used solely to support law enforcement
purposes.
Gas Tax Gas Tax or Highway Users Tax Account (HUTA) funds can be
used for, “the research, planning, construction, improvement,
maintenance, and operation of public streets and highways,
including the mitigation of their environmental effects, the
payment for property taken or damaged for such purposes, and
the administrative costs necessarily incurred in the foregoing
purposes.”
Traffic Impact Fund for Traffic impact fees paid by developers for their share
of future street improvements and intersections. These funds
will be used as appropriate for mitigation of the traffic impacts
of development and will accumulate until such time as they are
used.
EDBG RLF CDBG Program Income used to assist with rehabilitation of

housing under the City’s Code Enforcement Program.
Recycle Fund derived from depositing a portion (50%) of the City's
franchise fees from solid waste service providers in the City in
order to support street maintenance activities. CalRecycle is
not currently providing grants for this purpose any longer.
73
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2018

Low and
Moderate
Income Park
Housing Development PEG Police Grants Police ABC
ASSETS
Cash and investments $ 10,853 $ 55 $ 198,360 $ 204,608 $ 9,040
Receivables:
Loans/Notes receivable 863,174 - - - -
Other receivable - - 3,993 13,648 -
Total assets $ 874,027 $ 55 $ 202,353 $ 218,256 $ 9,040
LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:
Accounts payable 1,520 $ 55 $ 361 $ - $ -
Deposits payable 1,625 - - - -
Total liabilities: 3,145 55 361 - -
Deferred inflows of resources:
Unavailable revenue 863,174 - - -
Total liabilities and deferred inflows 866,319 55 361 - -
Fund Balances:
Restricted
Highways and streets - - - - -
Public safety - - - 218,256 9,040
Community promotion - - 201,992 - -
Affordable housing 7,708 - - - -
Unassigned (deficit) - - - - -
Total fund balances 7,708 - 201,992 218,256 9,040
Total liabilities deferred inflows and
$ 874,027 $ 55 $ 202,353 $ 218,256 $ 9,040
fund balances
74
Police Asset
Seizure Gas Tax Traffic Impact EDBG RLF Recycle Totals
$ 71,565 $ 266,966 $ 18,774 79,795 $ 154,589 $ 1,014,605

-
- - - 116,834 - 980,008
- - - - 56,321 73,962
$ 71,565 $ 266,966 $ 18,774 $ 196,629 $ 210,910 $ 2,068,575
$ - $ 11,462 $ - $ - $ - 13,398
- - - - - 1,625
- 11,462 - - - 15,023
-
-
- - - 116,834 - 980,008
-
- 11,462 - 116,834 - 995,031
- 255,504 18,774 - 210,910 485,188

71,565 - - - - 298,861
- - - - - 201,992
- - - 79,795 - 87,503
- - - - - -
-
71,565 255,504 18,774 79,795 210,910 1,073,544
-
$ 71,565 $ 266,966 $ 18,774 $ 196,629 $ 210,910 $ 2,068,575
75
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Special Revenue Funds

Low and
Moderate
Income Park
Housing Development PEG Police Grants
REVENUES:
Intergovernmental - - - 90,497
Other revenues 29,823 - 66,485 -
Total revenues 29,823 - 66,485 90,497
EXPENDITURES:
Current:
General government - - 28,855 -
Public safety - - - 10,005
Housing 39,733 - - -
Parks and recreation - 467 - -
Capital outlay - 2,612 - -
Total expenditures 39,733 3,079 28,855 10,005

EXPENDITURES (9,910) (3,079) 37,630 80,492

Write off investment in land held for resale (879,381) - -
Transfers in 847,751 - -
Transfers out - - - (100,000)
Total other financing
sources and uses (31,630) - - (100,000)
REVENUES AND OTHER FINANCING

SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES) (41,540) (3,079) 37,630 (19,508)
FUND BALANCES (DEFICITS):

Beginning of year 49,248 3,079 164,362 237,764
End of year $ 7,708 $ - $ 201,992 $ 218,256
76
Police Asset
Police ABC Seizure Gas Tax Traffic Impact EDBG RLF Recycle Totals
$ - $ - $ - $ - $ - $ 183,680 $ 183,680
16,912 42,546 377,950 - - 13,870 541,775
- - - - 9,496 - 105,804
16,912 42,546 377,950 - 9,496 197,550 831,259
- - - - - - 28,855
59,760 14,794 - - - - 84,559
- - - - 9,550 - 49,283
- - - - - - 467
- - 497,256 - - 16,917 514,173
- - 3,652 - - - 6,264
59,760 14,794 500,908 - 9,550 16,917 683,601
(42,848) 27,752 (122,958) - (54) 180,633 147,658
- - - - - (879,381)
- - - - - - 847,751
- - - - - (50,000) (150,000)
- - - - - (50,000) (181,630)
(42,848) 27,752 (122,958) - (54) 130,633 (33,972)
51,888 43,813 378,462 18,774 79,849 80,277 1,107,516

$ 9,040 $ 71,565 $ 255,504 $ 18,774 $ 79,795 $ 210,910 $ 1,073,544
77
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual
Low and Moderate Income Housing Special Revenue Fund
Variance w/Final
REVENUES:
Other revenues $ - $ - $ 29,823 $ 29,823
EXPENDITURES:
Current:
Housing 33,265 33,265 39,733 (6,468)
Total expenditures 33,265 33,265 39,733 (6,468)

EXPENDITURES (33,265) (33,265) (9,910) 23,355

Transfers in - - 847,751 847,751
Net change in fund balances (33,265) (33,265) (41,540) (8,275)
FUND BALANCES:
End of year $ 15,983 $ 15,983 $ 7,708 $ (8,275)
78
Park Development Special Revenue Fund
Variance w/Final
REVENUES:
Total revenues - - - -
EXPENDITURES:
Current:
Parks and recreation - - 467 (467)
Capital outlay - - 2,612 (2,612)

EXPENDITURES - - (3,079) (3,079)

Total other financing sources (uses) - - - -

End of year $ 3,079 $ 3,079 $ - $ (3,079)
79
PEG Special Revenue Fund
Variance w/Final
REVENUES:
Other revenues $ 83,500 $ 83,500 $ 66,485 $ (17,015)
Total revenues 83,500 83,500 66,485 (17,015)
EXPENDITURES:
Current:
General government 93,500 93,500 28,855 64,645
Capital outlay 0 0 - -
Total expenditures 93,500 93,500 28,855 64,645

EXPENDITURES (10,000) (10,000) 37,630 47,630

Transfers out 8,000 8,000 - (8,000)
Total other financing sources (uses) 8,000 8,000 - (8,000)
Net change in fund balances (2,000) (2,000) 37,630 39,630
FUND BALANCES:
End of year $ 162,362 $ 162,362 $ 201,992 $ 39,630
80
Police Grants Special Revenue Fund
Variance w/Final
REVENUES:
Intergovernmental $ 100,000 $ 100,000 $ 90,497 $ (9,503)
Total revenues 100,000 100,000 90,497 (9,503)
EXPENDITURES:
Current:
Public safety - - 10,005 (10,005)

EXPENDITURES 100,000 100,000 80,492 (19,508)

Transfers in
Transfers out (100,000) (100,000) (100,000) -
Total other financing sources (uses) (100,000) (100,000) (100,000) -

End of year $ 237,764 $ 237,764 $ 218,256 $ (19,508)
81
Police ABC Special Revenue Fund
Variance w/Final
REVENUES:
Intergovernmental $ - $ - $ 16,912 $ 16,912
EXPENDITURES:
Current:
Public safety - - 59,760 (59,760)

EXPENDITURES - - (42,848) (42,848)

Transfers out - - -

End of year $ 51,888 $ 51,888 $ 9,040 $ (42,848)
82
Police Asset Seizure Special Revenue Fund
Variance w/Final
REVENUES:
Intergovernmental $ - $ - $ 42,546 $ 42,546
EXPENDITURES:
Current:
Public safety - - 14,794 (14,794)
Capital outlay - - 0 -

EXPENDITURES - - 27,752 27,752

Net change in fund balances - - 27,752 27,752
FUND BALANCES:
End of year $ 43,813 $ 43,813 $ 71,565 $ 27,752
83
Gas Tax Special Revenue Fund
Variance w/Final
REVENUES:
Intergovernmental $ 509,477 $ 420,277 $ 377,950 $ (42,327)
Other revenues 194,698 194,698 - (194,698)
Total revenues 704,175 614,975 377,950 (237,025)
EXPENDITURES:
Current:
Public works and streets 447,678 429,980 497,256 (67,276)
Capital outlay 20,000 20,000 3,652 16,348

EXPENDITURES 236,497 164,995 (122,958) (287,953)

Transfers out 280,000 280,000 - (280,000)
Total other financing sources (uses) 280,000 280,000 - (280,000)
Net change in fund balances 516,497 444,995 (122,958) (567,953)
FUND BALANCES:
End of year $ 894,959 $ 823,457 $ 255,504 $ (567,953)
84
Traffic Impact Special Revenue Fund
Variance w/Final
REVENUES:
Use of money and property $ - $ - $ - $ -
Total revenues - - - -
EXPENDITURES:
Current:
Total expenditures - - - -

EXPENDITURES - - - -

Net change in fund balances - - - -
FUND BALANCES:
End of year $ 18,774 $ 18,774 $ 18,774 $ -
85
EDBG RLF Special Revenue Fund
Variance w/Final
REVENUES:
Other revenues $ - $ - $ 9,496 $ 9,496
EXPENDITURES:
Current:
Housing - - 9,550 (9,550)

EXPENDITURES - - (54) (54)
Net change in fund balances - - (54) (54)
FUND BALANCES:
End of year $ 79,849 $ 79,849 $ 79,795 $ (54)
86
Recycle Special Revenue Fund
Variance w/Final
REVENUES:
Taxes and assessments 87,000 87,000 $ 183,680 $ 96,680
Intergovernmental - - 13,870 13,870
Total revenues 87,000 87,000 197,550 110,550
EXPENDITURES:
Current:
Public works and streets 15,458 15,458 16,917 (1,459)

EXPENDITURES 71,542 71,542 180,633 109,091

Transfers out (50,000) (50,000) (50,000) -
Total other financing sources (uses) (50,000) (50,000) (50,000) -
Net change in fund balances 21,542 21,542 130,633 109,091
FUND BALANCES:
End of year $ 101,819 $ 101,819 $ 210,910 $ 109,091
87
88
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
Independent Auditor’s Report

of the City of Clearlake
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, each major
fund, the aggregate remaining fund information, and the budgetary comparison information of the City of
Clearlake (City), as of and for the year ended June 30, 2018, and the related notes to the financial statements,
which collectively comprise the City’s basic financial statements, and have issued our report thereon dated May
8, 2019.
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) to determine the 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. Given these limitations, during our audit we did not identify any deficiencies in internal
control that we consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (510) 217-5930
1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325
www.jjacpa.com

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 determination of
financial statement amounts. 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.
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.
]]TVcT? \ÇvA
May 8, 2019 JJACPA, Inc.
Dublin, CA
CITY OF CLEARLAKE
Agenda Item No. 7

Subject: Consideration of Continuation of Declaration of Date: August 2, 2019
Local Emergency Issued on October 9, 2017 and
Ratified by Council Action October 12, 2017
From: Melissa Swanson, City Clerk

Recommended Action: By motion keep declaration of emergency active and set next
review for the next Council meeting
On October 9th, 2017, City Manager Folsom, as the Director of Emergency Services for the City
of Clearlake, declared in a Proclamation by the Director of Emergency Services Declaring a Local
Emergency:
“That conditions of extreme peril to the safety of the persons and property have arisen
within the City of Clearlake caused by the wildfire on October 9th, 2017.”
According to California Government Code Section 8630:
(a) A local emergency may be proclaimed only by the governing body of a city, county,
or city and county, or by an official designated by ordinance adopted by that governing
body.
(b) Whenever a local emergency is proclaimed by an official designated by ordinance,

the local emergency shall not remain in effect for a period in excess of seven days unless
it has been ratified by the governing body.
(c) The governing body shall review the need for continuing the local emergency at least
once every 30 days until the governing body terminates the local emergency.
(d) The governing body shall proclaim the termination of the local emergency at the
earliest possible date that conditions warrant.
1
On October 12th the Council ratified the Proclamation of the Local Emergency by adoption of
Resolution No. 2017-78. The Council must continue the Proclamation every 30 days or
terminate the local emergency.
It is recommended that the City Council again continue the Proclamation of Emergency ratified
in Resolution No. 2017-78 and continued on October 26th, November 9th, November 16th,
November 30th, December 14th, December 21st, January 11th, February 8, March 8, March 22nd,
April 12th, May 10th, May 24th, June 14th, July 12, August 9, September 6, October 11, and
November 8, December 6th, December 13th, January 10th, January 28th, February 14th, March
14th, April 11th, May 9th, June 6th, June 13th, and July 11th and review the status of the
Proclamation again within 30 days.
There is potential for recovery of costs by the City due to the declared state of emergency.
2
CITY OF CLEARLAKE
Agenda Item No. 8
Subject: Consider contract with H D Excavating, in the Date: 08/01/19

amount of $45,000.00, for the abatement of real
properties located at 16216 34th Avenue, 14170
Konocti Street, 16052 19th Avenue and 3191 6th Reviewed & Approved:
Street;
From: Lee Lambert, Code Enforcement Supervisor
Recommended Action: Authorize the City Manager to execute a contract with H D

Excavating for the abatement of real properties located at 16216
34th Avenue, 14170 Konocti Street, 16052 19th Avenue and 3191
6th Street, for a not to exceed amount of $45,000.00, as part of the
City’s CalRecycle Illegal Disposal Site Abatement Grant
The City of Clearlake was successful in obtaining a grant from CalRecycle for Illegal Disposal Site
Abatement. The grant award amount was $214,090.00. Abatement of 14 properties have
already been completed through the grant over the past year, leaving a remaining balance of
$41,221.97.
The Code Enforcement Bureau identified additional properties warranting abatement via the
grant and issued an RFP for the abatement, following proper notice to the respective property
owners. Chernoh Excavating and H D Excavating, attended the mandatory pre-bid meeting and
walkthrough. H D Excavating submitted a bid prior to the advertised deadline and was the sole
bidder.
The following is a summary identifying subject property, property owner(s) and the proposed
bid amount from H D Excavating:
1. Location: 16216 34th Avenue Clearlake, CA 95422 A.P.N.# 041-212-470

Owner: Ernest, Lannie & Mary
Action(s): Abatement of real property
Abatement Assessment: $13,000.00
2. Location: 14170 Konocti Street Clearlake, CA 95422 A.P.N.# 039-065-230
Owner: Gilliam, Bret

Owner: Koll, Shelley
4. Location: 3191 6th Street Clearlake, CA 95422 A.P.N.# 038-181-650

Owner: Ernest, Estate of Wayne Normile
The proposed bid for all the properties exceeds the grant funding by approximately $4,000.00.
Staff proposes utilizing existing appropriations in Code Enforcement’s general fund budget to
cover this difference.
Staff recommends that the Council Approve the bid as submitted and authorize the City
Manager to execute a contract with H D Excavating. Attached is the proposed statement of
expenses and Notice Inviting Bids and Contract for the proposed abatements.
POLICY AND/OR FINANCIAL IMPLICATIONS:

Approval of bid will have a negative monetary impact of approximate $4,000.00 to the City’s
budget.
STRATEGIC PLAN IMPLEMENTATION:

The abatement of hazardous and nuisance properties and assessments helps to enforce
compliance with Clearlake’s Municipal Code, thereby helping to achieve Goal #1 of the Strategic
Plan, Make Clearlake a Visibly Cleaner City and Goal #2 Make Clearlake a Statistically Safer City.
EXHIBIT A
STATEMENT OF EXPENSES

Owner: Ernest, Lannie & Mary
2. Location: 14170 Konocti Street Clearlake, CA 95422 A.P.N.# 039-065-230

Owner: Gilliam, Bret

Owner: Koll, Shelley
4. Location: 3191 6th Street Clearlake, CA 95422 A.P.N.# 038-181-650

Owner: Ernest, Estate of Wayne Normile
CITY OF CLEARLAKE
Agenda Item No. 9
Subject: Discussion and Direction Regarding Proposed Date: August 1, 2019

Animal Shelter
From: Andrew White, Chief of Police
Recommended Action: Discuss and provide direction to staff regarding proposed animal
shelter and funding plan.
The Clearlake Animal Shelter operates out of the Public Works Corporation Yard. The shelter
consists of kennels located inside the old hangar building and a collection of outdoor kennels.
Another old airport building holds the laundry room and an office that doubles as a cat kennel.
The facility was not built for the current use and lacks adequate space for the volume of animals
regularly taken in. The indoor kennels are often doubled up from their intended capacity. The
outdoor kennels, which were intended for overflow, are also often filled with animals. There is
no exam room for the contract vet to conduct comprehensive exams on animals. There is also a
lack of space for proper quarantine.
The office building is in major disrepair and lacks enough space to support the operations. The
site itself is not conducive to a animal shelter operations due a lack of fenced corridors and access
ways to prevent the escape of animals. There is also no defined area for potential adopters to
visit with animals.
Over the past year, the Animal Control Ad Hoc Committee and department staff have explored
and discussed various options for the upgrade of the shelter. The options explored have included
relocating to other sites in the city as well as renovating an existing building or erecting new
buildings.
The Ad Hoc Committee and staff have reached consensus and are proposing the acquisition and
installation of 2 modular kennel buildings and 1 modular office along with site improvements.
The site improvements include secure fencing and pathways, a landscaped central area for
visiting with animals, concrete walkways and ADA parking.
The modular kennel buildings are purpose-built structures that are delivered, placed onto a
concrete pad and connected to utilities. The structures include HVAC, a combined capacity of 18
kennel boxes and 18 runs, a storage room, cat room, exam room and lobby area.
The City Engineer has completed an engineer’s estimate for the project in the amount of
$376,000. They have also completed a preliminary site plan, which is attached to this report. The
estimate includes relocation of existing items at the corporation yard and demolition of the
current office building.
Staff has been in contact with the USDA regarding grant funding opportunities. The City is eligible
to submit for a grant before the end of September for up to 35% of the project cost. Staff’s
proposed funding is as follows:
Series A Bond Funds $200,000

USDA Grant Funds $131,600
General Fund $44,400
Staff is requesting discussion and direction by City Council on the proposed project. If there is
consensus regarding the project, staff requests City Council approval to move forward with a
formal application for the USDA funding and to move forward on an RFP for the project.
The cost of the project as proposed is approximately $376,000. The city contribution to this
project will depend on whether the grant is awarded.
The project will support achieving the following Council adopted goal: Improve the Quality of Life
in Clearlake with Improved Public Facilities.
03
19-718
EX. ENTRANCE
01
GATE
EXISTING ANIMAL CONTROL SITE PLAN

X
X
CITY OF CLEARLAKE
AIRPORT ROAD
X
X
X
X
151'
X
X
EX. STRUCTURE TO EX. FENCE
X
BE RELOCATED
X
X
EX. STRUCTURE
TO BE DEMOLISHED
X
X
X
X
314'
X
50'
X
69'
X
50'
30'X
X
X
DLS
1"=30'
MRH
05/21/2019
MRH
EX. STRUCTURES
X
TO REMAIN
X
60'
X
X
110'
EX. KENNELS
X
TO REMAIN
X
X
EX. STRUCTURE TO
X
BE RELOCATED
X
X X X X X X X X X X X X X
251'
*DISTANCES ARE APPROXIMATE

03
19-718
02
EX. ROLLING GATE
PROPOSED ANIMAL CONTROL SITE PLAN

OFFICE BUILDING
X
-12' X 32' X
31'
CITY OF CLEARLAKE
AIRPORT ROAD
X
D
X
O A
R X 9' PARKING
X
14X52 KENNEL GRAVEL PATH
NE
X
-SEE DETAIL 1, SHEET 3
W
6'
OF
X
X
4'
FI
X 18'
CE
L 31'
N NE X
X
KE
X
X
W
NE X 12'
X
X
X
R T 8' X
RE
PO
LO
X
R
CA
NE
AI 6' GATED AREA
T
W
X
ED
X
X
KE
X
NN
GRASS AREA
EL
14X50 KENNEL PLAY YARD

X
-SEE DETAIL 2, SHEET 3
X
HOSE BIB 4' CHAIN LINK FENCE
TRASH ENCLOSURE
15'
X
X
X
S
O P NEL
H N
X
. S KE
EX
X
E ITH
X
.K
DLS
1"=30'
MRH
05/21/2019
MRH
W
EN
X
NE
X
L
X
A GE
OR
X
. ST
X
EX
X
X
X
EX. KENNEL RELOCATED
X
X X X X X X X X X X X X X
*DISTANCES ARE APPROXIMATE

03
19-718
14'X52' COMMERCIAL 8 RUN KENNEL WITH CAT ROOM
03
BY HORIZON STRUCTURES
INCLUDES:
(8) 4X5 DOG BOXES
(8) 4X6 DOG RUNS
ANIMAL CONTROL SITE PLAN

LOBBY
OFFICE
CAT ROOM
CITY OF CLEARLAKE
AIRPORT ROAD
EXAM ROOM
(3) WALL MOUNT HEAT AND AC UNITS
STAINLESS FLOOR DRAIN
14X52 KENNEL BUILDING

1
14'X50' COMMERCIAL 10 RUN KENNEL
BY HORIZON STRUCTURES
INCLUDES:
(10) 4X5 DOG BOXES
(10) 4X6 DOG RUNS
10X14 LOBBY
WASHER AND DRYER HOOKUPS
DLS
NONE
MRH
05/21/2019
MRH
(1) WALL MOUNT HEAT AND AC UNIT
(1) MINI SPLIT UNIT HEAT/AC (FOR KENNEL AREA)
STAINLESS FLOOR DRAIN
14X50 KENNEL BUILDING

2
CITY OF CLEARLAKE

Agenda Item No. 10
Subject: Consideration of Extending a Moratorium on the Date: August 2, 2019

Establishment of Tobacco Retailing Businesses,
Smoke Shops, or Hookah or Vapor Lounges within
the City of Clearlake Reviewed & Approved:
From: Melissa Swanson, Administrative Services

Director/City Clerk
Recommended Action: Adopt Extension of Moratorium – Ordinance No. 232-2019
Pursuant to Government Code Section 65858, at the City Council meeting on August 15, 2018,
the City Council adopted Ordinance 210-2018, which was an urgency ordinance that placed a
moratorium on the establishment of tobacco retailing businesses, smoke shops, or hookah or
vapor lounges within the City of Clearlake. The Council determined that such action was
necessary to protect the public safety, health, and welfare of the community. On September 27,
2018, the City Council approved extending that moratorium for an additional ten months and
fifteen days.
The City has been approached by a company that wants a business license to open a smoke shop
on Lakeshore Drive. The City’s zoning ordinance does not distinguish between tobacco retailers,
smoke shops, or hookah or vapor lounges and any other type of retailer. At the July 25th City
Council meeting, Council gave staff direction to develop regulations for a future Tobacco Retail
License ordinance. Extension of the moratorium allows additional time to research and
determine specific regulations for tobacco retailing businesses.
Additionally, Government Code Section 65858(c)(3)(d) ten days prior to the expiration of the
interim ordinance or any extension, the legislative body shall issue a written report describing
the measures taken to alleviate the condition which led to the adoption of the ordinance. A copy
of the report released on July 30 is attached. Finally, an urgency ordinance extension requires a
4/5th vote to pass.
No financial implications.
Attachments:
Council Report on Interim Urgency Ordinance No. 210-2018

Ordinance No. 210-2018 (Interim Urgency Ordinance for 45 days, adopted August 15, 2018)
Ordinance No. 213-2018 (Extension of an Urgency Ordinance, adopted September 27, 2018)
Ordinance No. 232-2019 (Proposed Extension of an Urgency Ordinance)
REPORT OF THE CITY COUNCIL OF THE CITY OF CLEARLAKE
ON INTERIM URGENCY ORDINANCE NO. 210-2018 IMPOSING A MORATORIUM
ON THE ESTABLISHMENT OF TOBACCO RETAILING BUSINESSES, SMOKE
SHOPS, OR HOOKAH OR VAPOR LOUNGES
I. Introduction
On August 16, 2018, the City Council of the City of Clearlake enacted Ordinance No.
210-2018, an interim urgency ordinance imposing a moratorium on the of tobacco retailing
businesses, smoke shops, or hookah or vapor lounges. Pursuant to Government Code Section
65858, the interim urgency ordinance remains in effect for forty-five (45) days. Thereafter, state
law allows the City Council to extend the ordinance for ten (10) months and fifteen (15) days
and, if necessary, to adopt a second extension for an additional year.
Ten days prior to the expiration of the interim urgency ordinance, the City Council must
issue a written report describing the measures taken to alleviate the conditions which led to the
adoption of the ordinance. The City has prepared this report in satisfaction of the requirements
of Section 65858.
II. Background to the Adoption of the Interim Urgency Ordinance
In support of the interim urgency ordinance, the City Council made the following
findings:
A. There is a public urgency and a need to immediately protect the public health, safety and
welfare by placing a moratorium on and prohibiting the opening of tobacco retailers, smoke
shops, hookah lounges, or vapor lounges at any location in the City of Clearlake.
B. The facts constituting the urgency are that a business has expressed intent to proceed with
opening a smoke shop. The City’s zoning code does not currently regulate the location of these
types of businesses.
C. There is insufficient time for the City to adopt a regular, non-urgency ordinance
applicable to these types of businesses. This ordinance both complies with applicable state law
(California Government Code §36937) and preserves the status quo, so that the City may either
prohibit such uses or establish reasonable rules and regulations protecting the public health,
safety and welfare of Clearlake residents and businesses regarding the sales of tobacco
products, smoke shops, hookah lounges, and vapor lounges.
D. The potential adverse direct and secondary effects of tobacco retailers, smoke shops,
hookah lounges, and vapor lounges present a clear and present danger to the immediate
preservation of the public health, safety, and welfare of the community as these businesses may
be incompatible with existing businesses and neighborhoods located in the City.
-1-
E. The ordinance was hereby found to be categorically exempt from environmental review
pursuant to CEQA Guidelines Section 15061 (b)(3).
III. Measures Taken Since the Adoption of the Interim Urgency Ordinance
As the City Council’s findings demonstrate, the interim urgency ordinance was enacted
in response to the likelihood that the City of Clearlake would receive an application for a
business license for a tobacco retailing business, smoke shop or hookah or vapor lounge before it
could put into place satisfactory regulations to protect against the adverse impacts that typically
accompany such establishments.
To alleviate the conditions that led to the adoption of the interim urgency ordinance, the
City has begun to take the following steps:
1. City staff has studied the potential impacts of tobacco retail businesses, smoke
shops and/or hookah or vapor lounges on the public health, safety, and welfare, and possible
amendments to the City’s Zoning Ordinance.
2. City staff has gathered factual data regarding the adverse impacts experienced by
other cities that have permitted such businesses. This information is currently being processed to
determine the likelihood that such impacts might result in Clearlake.
3. City staff has also conducted research into the City’s options for permanent
regulation of tobacco retail businesses. This research, which is ongoing, includes a review of
city ordinances in California that either prohibit or regulate tobacco retail businesses.
For these reasons, on August 11, 2019, the City Council will consider extending the
interim urgency ordinance for an additional year to permit City staff to complete its research and
to provide sufficient time for City staff to formulate appropriate recommendations in light of that
research.
-2-
ORDINANCE NO. 232-2019
EXTENSION OF AN URGENCY ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF CLEARLAKE PLACING A
MORATORIUM ON THE ESTABLISHMENT OF TOBACCO
RETAILING BUSINESSES, SMOKE SHOPS, OR HOOKAH OR
VAPOR LOUNGES
WHEREAS, on August 15, 2018, the City Council of the City of Clearlake voted 5-0 to adopt
Urgency Ordinance No. 210-2018 placing a moratorium on and prohibiting the establishment of
tobacco retailing business, smoke shops, or hookah or vape lounges within the City.
WHEREAS, on September 27, 2018, the City Council of the City of Clearlake voted 5-0 to adopt
Urgency Ordinance No. 213-2018 extending said moratorium for an additional ten (10) months
and fifteen (15) days.
The City Council of the City of Clearlake does hereby ordain as follows:
Section 1. Findings. The City Council of the City of Clearlake finds and determines that:
A. There is a public urgency and a need to immediately protect the public health,
safety and welfare by placing a moratorium on and prohibiting the opening of tobacco retailers,
smoke shops, hookah lounges, or vapor lounges at any location in the City of Clearlake.
B. The facts constituting the urgency are that a business has expressed intent to
proceed with opening a smoke shop. The City’s zoning code does not currently regulate the
location of these types of businesses.
C. There is insufficient time for the City to adopt a regular, non-urgency ordinance
applicable to these types of businesses. This ordinance both complies with applicable state law
(California Government Code §36937) and preserves the status quo, so that the City may either
prohibit such uses or establish reasonable rules and regulations protecting the public health,
safety and welfare of Clearlake residents and businesses regarding the sales of tobacco
products, smoke shops, hookah lounges, and vapor lounges.
D. The potential adverse direct and secondary effects of tobacco retailers, smoke
shops, hookah lounges, and vapor lounges present a clear and present danger to the immediate
preservation of the public health, safety, and welfare of the community as these businesses may
be incompatible with existing businesses and neighborhoods located in the City.
E. This ordinance is hereby found to be categorically exempt from environmental

review pursuant to CEQA Guidelines Section 15061 (b)(3).
Section 2. Extension. The City Council of the City of Clearlake hereby extends Urgency
Ordinance 210-2018, in its entirely, which thereby places a moratorium on and prohibiting the
opening of the opening of tobacco retailers, smoke shops, hookah lounges, or vapor lounges
at any location in the City of Clearlake, for a period of one (1) year. The urgency ordinance is
necessary for the protection of the public health, safety, and welfare to become effective
immediately upon its adoption; and to protect the health, safety and welfare of the residents
of the City.
Section 3. Immediate Effect. Consistent with Government Code Section 65858, this
ordinance shall take effect immediately upon the expiration of the ten (10) months and
fifteen (15) days from the date the extension of the Urgency Ordinance No. 213-2018 which
was approved on September 27, 2018, for a period of one (1) year and the existing provisions
of the code previously affected by this ordinance will continue in force unaffected upon the
expiration of this time period consistent with Government Code Section 65858 or as
amended during this time period by the Clearlake City Council.
Section 4. Interpretation. Any provision of the City of Clearlake Municipal Code

or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of
such inconsistencies and no further valid, is hereby repealed or modified to that extent
necessary to effect the provisions of this Ordinance.
Section 5. Severability. Should any provision of this Ordinance, or its application to any
person or circumstance, be determined by a court of competent jurisdiction to be unlawful,
unenforceable or otherwise void, that determination shall have no effect on any other provision
of this Ordinance or the application of this Ordinance to any other person or circumstance and, to
that end, the provisions hereof are severable. The City Council of the City of Clearlake declares
that it would have adopted all the provisions of this ordinance that remain valid if any provisions
of this ordinance are declared invalid.
Section 6. The Mayor shall sign and the City Clerk shall attest to the passage of this
Ordinance. The City Clerk shall cause the same to be published once in the official newspaper
within 15 days after its adoption. This Ordinance shall become effective immediately upon its
adoption. The publication of a summary of the ordinance in lieu of the full text of the ordinance is
authorized only where the requirements of Government Code section 36933(c)(1) are met.
I hereby certify that the foregoing Ordinance was PASSED, APPROVED and ADOPTED this 8th
day of August, 2019.
AYES:
NOES:
ABSENT OR NOT VOTING
_______________________________
MAYOR
ATTEST:
____________________________________
CITY CLERK

Clearlake City Council Agenda Packet

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Clearlake City Council Agenda Packet

Загружено:

Авторское право:

Доступные форматы

CITY OF CLEARLAKE

THURSDAY AUGUST 8, 2019 6:00 P.M.

ADOPTION OF THE AGENDA (This is the time for agenda modifications.)

Consent Items Recommended Action

9. Discussion and Direction Regarding Proposed Animal Shelter

10. Consideration of Extending a Moratorium on the Establishment of Tobacco Retailing Businesses,

CITY MANAGER AND COUNCILMEMBER REPORTS

POSTED: August 2, 2019

From: Tina Viramontes- Deputy City Clerk

ISSUE STATEMENT AND DISCUSSION:

a) Dam Rd. Ext. College Access road from 6:30am – 5:00pm.

b) Dam Rd. Ext. at 18th Avenue from 6:30am – 5:00pm.

PASSED AND ADOPTED on August 8, 2019 by the following vote:

Mayor, City of Clearlake

Agenda Item No. 5

From: Melissa Swanson, City Clerk

ISSUE STATEMENT AND DISCUSSION:

From the staff report of July 25th:

ISSUE STATEMENT AND DISCUSSION:

FINANCIAL AND/OR POLICY IMPLICATIONS:

There is no financial cost to the city for this item.

AN ORDINANCE AMENDING CHAPTER 2, SECTION 2-8 OF THE

ABSENT OR NOT VOTING:

Mayor, City of Clearlake

City Clerk, City of Clearlake

CITY COUNCIL STAFF REPORT

Agenda Item No. 6

From: Jill Martin, Interim Finance Director

Recommended Action: Receive and File

ISSUE STATEMENT AND DISCUSSION:

FINANCIAL AND/OR POLICY IMPLICATIONS:

City of Clearlake Basic Financial Statements June 30, 2018

Our Responsibility in Relation to the Financial Statement Audit

Planned Scope and Timing of the Audit

ANNUAL FINANCIAL REPORT

FOR THE FISCAL YEAR ENDED

JUNE 30, 2018

COMPREHENSIVE ANNUAL Prepared by:

FINANCIAL REPORT Finance Department

Independent Auditors’ Report ........................................................................................................... 1

Basic Financial Statements:

Government-Wide Financial Statements:

Fund Financial Statements:

Notes to Basic Financial Statements .......................................................................................... 32

Other Supplemental Information:

Required Supplementary Information:

Nonmajor Special Revenue Funds:

Report on Internal Control Over Financial Reporting and on

To the Honorable Mayor and City Council

Report on the Financial Statements

Management’s Responsibility for the Financial Statements

Required Supplementary Information

Other Reporting Required by Government Auditing Standards

DEFERRED OUTFLOWS OF RESOURCES

Grants This fund includes the majority of all capital projects

General Police CDBG Code

LIABILITIES, DEFERRED INFLOWS

$ 4,579,956 $ 2,941,896 $ 1,230,260 $ - $ 1,014,605 $ 10,924,295

$ - $ - $ 107,975 $ 191,114 $ 13,398 $ 467,931

5,578,316 2,941,896 - - 485,188 9,005,400

Total fund balances - total governmental funds $ 12,294,475

Capital assets used in governmental activities are not current financial

Governmental funds notes receivable from various loan programs are