Shasta Lake MSR SOI Update Commission Approved 12 7 2023

Shasta Local Agency Formation Commission Municipal Service Review & Sphere of Influence Update City of Shasta Lake Commission Approved December 2023 SHASTA LOCAL AGENCY FORMATION COMMISSION Commissioners Patrick Jones, County Member - District 5 Supervisor Kevin Crye, County Member & Vice Chair - District 1 Supervisor Stan Neutze, City Member - City of Anderson Pamelyn Morgan, City Member – City of Shasta Lake Ronnean Lund, Special District Member – Anderson Cottonwood Irrigation District Irwin Fust, Special District Member & Chair - Clear Creek Community Services District Larry Russell, Public Member Alternate Members Mary Rickert, County Member - District 3 Supervisor Mike Dacquisto, City Member - City of Redding Fred Ryness, Special District Member – Burney Water District Michael Spencer, Public Member Shasta LAFCO Staff George Williamson, AICP, Executive Officer James M. Underwood, Legal Counsel Planwest Partners Staff Jason Barnes, GIS Analyst Krystle Heaney, AICP Senior Planner Amber Chung, Planning Technician Acknowledgements: LAFCO staff would like to thank contributors to this Municipal Service Review. Input instrumental in completing this report was provided by City Manager Jessaca Lugo and her staff. City of Shasta Lake MSR/SOI Update Table of Contents MUNICIPAL SERVICE REVIEW ....................................................................................................... 1 SPHERE OF INFLUENCE UPDATE .................................................................................................... 1 Introduction......................................................................................................................................... 1 City Overview ..................................................................................................................................... 1 Service Review Determinations ...................................................................................................... 1 Sphere of Influence Determinations .............................................................................................. 2 Uses of the Report .............................................................................................................................. 2 Review Methods ................................................................................................................................ 3 California Environmental Quality Act ............................................................................................ 3 Common Agency Profile Topics ..................................................................................................... 3 AGENCY PROFILE ......................................................................................................................... 5 Formation ............................................................................................................................................ 5 City Boundary and Sphere .............................................................................................................. 5 City Government ............................................................................................................................... 7 Annexations and Detachments since last MSR ........................................................................... 7 Other Service Providers .................................................................................................................... 7 Existing and Planned Land Uses ..................................................................................................... 8 Growth and Population.................................................................................................................. 10 Disadvantaged Communities ....................................................................................................... 10 Municipal Services ........................................................................................................................... 12 Financial Overview .......................................................................................................................... 25 MUNICIPAL SERVICE REVIEW DETERMINATIONS ....................................................................... 35 SPHERE OF INFLUENCE DETERMINATIONS .................................................................................. 36 Shasta LAFCO 2 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Figures Figure 1: City Boundary and Sphere of Influence .................................................................................... 6 Figure 2: City Land Uses, from General Plan ........................................................................................... 11 Figure 3: City Natural Resources and-Flood Zones ................................................................................ 15 Figure 4: Public Facilities, Parks and Recreation .................................................................................... 20 Figure 5: Fire Risk, Wildfire Protection-Responsibility Areas ................................................................... 23 Tables Table 1: City of Shasta Lake Overview Summary .................................................................................... 5 Table 2: City of Shasta Lake Mayor and City Council ............................................................................ 7 Table 3: City of Shasta Lake Land Use Acreage ...................................................................................... 9 Table 4: City of Shasta Lake Budgets ....................................................................................................... 26 Table 5: City of Shasta Lake Budgeted General Fund Revenues ...................................................... 27 Table 6: City of Shasta Lake Budgeted General Fund Expenses........................................................ 27 Table 7: City of Shasta Lake Budgeted Revenues by Fund Type ....................................................... 28 Table 8: City of Shasta Lake Budgeted Expenses by Fund Type ........................................................ 28 Table 9: City of Shasta Lake Actual Revenues ....................................................................................... 28 Table 10: City of Shasta Lake Actual Expenditures ............................................................................... 29 Table 11: City of Shasta Lake Operating Margin ................................................................................... 29 Table 12: City of Shasta Lake Total Margin ............................................................................................. 29 Table 13: City of Shasta Lake Five-Year Study Period ........................................................................... 30 Table 14: City of Shasta Lake Assets: Current & Non-Current ............................................................. 31 Table 15: City of Shasta Lake Liabilities: Current & Non-Current ....................................................... 32 Table 16: City of Shasta Lake Net Position ............................................................................................... 32 Shasta LAFCO 3 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update MUNICIPAL SERVICE REVIEW SPHERE OF INFLUENCE UPDATE Introduction Municipal Services Reviews (MSRs) provide agency infrastructure, management, services, and boundary information. The report is for Shasta Local Agency Formation Commission’s (LAFCO) use in conducting a statutorily required MSR review process. The Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (CKH Act) requires that the Commission conduct periodic reviews for cities & special districts in Shasta County (Government Code § 56425). State law also requires that, prior to Sphere of Influence (SOI) adoption, LAFCO must conduct a review of municipal services provided by that local agency (Government Code §56430). This report provides LAFCO with a tool to study current & future public service conditions comprehensively & evaluate organizational options for accommodating growth, preventing urban sprawl, & ensuring that critical services are provided efficiently. City Overview Cities are incorporated under California’s Chapter 2 Classification Law (Government Code §34102). They can provide a full range of municipal services including water, wastewater, solid waste disposal, fire protection services, parks and recreation, street maintenance, and other services. The City’s Planning area extends approximately 9,469 acres with about 6,930 acres in the City Limits and 2,539 acres within the SOI. Service Review Determinations Government Code §56430 requires LAFCO to conduct a review of municipal services provided in the county by region, sub-region or other designated geographic area, as appropriate, for the service or services to be reviewed, and prepare a written statement of determination with respect to each of the following topics: 1) Growth and population projections for the affected area; 2) The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the SOI; 3) Present and planned capacity of public facilities, adequacy of public services, and infrastructure needs or deficiencies (including needs or deficiencies related to sewers, municipal and industrial water, in any disadvantaged, unincorporated communities within or contiguous to the SOI) 4) Financial ability of agencies to provide services; 5) Status of, and opportunities for, shared facilities; 6) Accountability for community service needs, including governmental structure and operational efficiencies; and 7) Any other matter affecting or related to effective or efficient service delivery, as required by Commission policy. Shasta LAFCO 1 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update This service review provides an overview of the City along with an agency profile. The report also includes service review determinations and sphere of influence recommendations for: City of Shasta Lake State Guidelines and Commission policies encourage stakeholder cooperation in the municipal service review preparation. It also provides a basis to evaluate, and make changes to the Spheres of Influence, if appropriate. Sphere of Influence Determinations A SOI is a LAFCO-approved boundary that designates an agency’s probable physical service area. Spheres are planning tools used to provide guidance for individual boundary change proposals and are intended to encourage efficient provision of organized community services, discourage urban sprawl and premature conversion of agricultural and open space lands, and prevent overlapping jurisdictions and duplication of services. LAFCO is required to establish SOIs for all local agencies and enact policies to promote the logical and orderly development of areas within the SOIs. Furthermore, LAFCO must update those SOIs every five years. In updating the SOI, LAFCO is required to conduct a MSR and adopt related determinations. In addition, in adopting or amending an SOI, LAFCO must make the following determinations: 1) Present and planned area land uses, including agricultural and open-space lands; 2) Present and probable need for public facilities and services in the area; 3) Present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide; 4) Existence of any social or economic communities of interest in the area if the Commission determines that they are relevant to the agency; and 5) Present and probable need for public facilities and services related to sewers, municipal or industrial water, or structural fire protection of any disadvantaged unincorporated communities in the existing SOI (effective July 1, 2012). Uses of the Report This service review provides the opportunity to identify trends relating to the adequacy, capacity, and cost of providing services in rural areas of Shasta County. Service reviews may identify district boundary changes, where appropriate, to extend services; evaluate consolidation feasibility, where appropriate, and implement other measures to address community water and wastewater service needs. The potential uses of this report are described below. To Update Spheres of Influence This MSR serves as the basis for an SOI update which considers territory LAFCO believes represents an agency’s appropriate future jurisdiction and service area. All boundary changes, such as annexations, must be consistent with an affected agency’s SOI with limited exceptions. Shasta LAFCO 2 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update To Consider Jurisdictional Boundary Changes LAFCO is not required to initiate any boundary changes based on service reviews. However, LAFCO, other local agencies (including cities, special districts, or the County), or the public may subsequently use this report together with additional research and analysis, where necessary, to pursue changes in jurisdictional boundaries. Resource for Further Studies Other entities and the public may use this report for further study and analysis of issues relating to the City and municipal services in Shasta County. Review Methods The following information was considered in the service review: Agency-specific data: responses to LAFCO Requests for Information from City of Shasta o Lake, maps, district plans and agency correspondence; Land Use and Shasta County General Plan data: Shasta County Resource Management o –Planning Division; Demographic data: U.S. Census; CA Department of Finance; CA Water Resources Board; o Finances: budgets, rates and fees; and o Other Reports and Assessments: State Water Resources Control Board citation. o Information gathered was analyzed and applied to make the required determinations for the agency and reach conclusions about the focus issues identified in the service review. All information gathered for this report is filed by LAFCO for future reference. California Environmental Quality Act The California Environmental Quality Act (CEQA) is contained in Public Resources Code §21000 et seq. Under this law, public agencies are required to evaluate the potential environmental effects of their actions. MSRs are statutorily exempt from CEQA pursuant to §15262 (feasibility or planning studies) and categorically exempt pursuant to CEQA Guidelines §15306 (information collection). It should be noted that when LAFCO acts to update an SOI, CEQA requirements must be satisfied. The lead agency for CEQA compliance would most likely be LAFCO. Common Agency Profile Topics Several topics are evaluated in an agency profile. Those topics are defined in this section and discussed further in the agency profile. Disadvantaged Unincorporated Communities LAFCO is required to evaluate disadvantaged unincorporated communities (DUCs) as part of its municipal service review process. Per California Senate Bill 244, a DUC is defined as any area with 12 or more registered voters where the median household income (MHI) is less than 80 percent of the statewide MHI. Within a DUC, three basic services are evaluated: water, sewer and fire protection. The most recently available data for US Census Block Groups, Tracts and Places from the US Census American Community Survey (ACS) 5-Year Data is used to determine disadvantaged communities in the region of interest. Using this information, each district or agency is evaluated to determine whether it is a DUC, or in the case of cities, whether there are DUCs within the city’s Shasta LAFCO 3 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update SOI. In many cases, Census Block Groups are larger than Districts. In these cases, LAFCO’s evaluation was conducted with an abundance of caution to ensure no DUCs are overlooked. City Growth Projections Local governments can prepare for future growth with actions that protect the residents’ health and safety. The City of Shasta Lake has a Compound Annual Growth Rate (CAGR) of 0.9%. This is an increase in population of 104 annually. The 20-year projection estimates a population increase of 2,083. The City experienced the most rapid growth in the early 2000’s, with 2002 to 2003 being the fastest at a 3.8 percent average annual growth rate. According to the most recent California Department of Finance estimate, the Shasta County population decreased by 0.1% from 2018 to 2019. This could be the result of recent wildfires. Although, the Department of Finance projects the County’s population will increase from 179,412 to 188,154, between 2020 and 2030, an average annual growth rate of 0.49%. Governance and Accountability The city of Shasta Lake operates as a General Law City. General Law Cities are those who operate under the general laws of the state. They do not have their own charter. The City is governed by a five-member City Council that is elected by the residents of Shasta Lake. Shasta LAFCO 4 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update AGENCY PROFILE This section profiles the City listed below. Included in the profile is a description of the agency’s organizational development, tables listing key service information, and maps showing jurisdictional boundaries. City of Shasta Lake City of Shasta Lake The City of Shasta Lake serves the community of Shasta Lake, north of the City of Redding. Table 1: City of Shasta Lake Overview Summary Primary Contact Jessaca Lugo, City Manager Address: 4477 Main Street Shasta Lake, CA 96019 Website https://www.cityofshastalake.org/ Water, Wastewater, Stormwater, Electric, Animal Control, Streets, Services Provided Parks and Recreation Services, Law Enforcement, and Emergency Management Population Served: 10,423 (2021) Service Area Size: 10.93 sq. mi /6,930 acres Formation The City of Shasta Lake was incorporated in July of 1993 and encompassed approximately 10.9 square miles. The City was created to provide area inhabitants with water, sewer, and electric services. City Boundary and Sphere The City boundary is shown in Figure 1. The City of Shasta Lake size: City of Shasta Lake Boundary - 6,930 acres o City of Shasta Lake Boundary and SOI - 9,469 acres o City of Shasta Lake SOI only (outside district) - 2,539 acres o Shasta LAFCO 5 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Figure 1: City Boundary and Sphere of Influence Shasta LAFCO 6 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update City Government The City of Shasta Lake is governed by a five-person council elected to staggered 4-year terms (Table 2). Meetings are held every first and third Thursday of the month at 6pm at the Council Chambers located at 4488 Red Bluff Street. The City maintains a website (https://cityofshastalake.org/). Meeting agendas are available at least 72 hours in advance and meeting minutes are available after adoption on the website. Meeting agendas are also available at two local post offices, as well as posted at City Hall. Table 2: City of Shasta Lake Mayor and City Council Title Current Term Expiration Member Greg Watkins Mayor December 2024 Janice Powell Vice Mayor December 2024 Justin Jones Council Member December 2026 Pamelyn Morgan Council Member December 2026 Tena Eisenbeisz Council Member December 2024 Annexations and Detachments since last MSR None Other Service Providers Shasta Lake Fire Protection District The Shasta Lake Fire Protection District (SLFPD) provides fire protection, fire prevention, and emergency medical services to the City and one square mile east of the City in unincorporated Shasta County. The SLFPD was created in September of 1940 to provide fire services to the area. Currently, the SLFPD employs nine full-time professionals and one admin clerk. The District relies on volunteers to help respond to calls and provide fire protection. They provide 24 hour a day coverage of the City of Shasta Lake and the surrounding areas. The SLFPD responds to approximately 1,500 incidents a year. The SLFPD has three fire stations and personnel and equipment in City limits. Shasta County Office of Emergency Services The Shasta County Office of Emergency Services (OES) coordinates with local agencies and jurisdictions, along with state and federal agencies, to prepare for, respond to, and recover from emergencies and disasters. Their office is located south of the City in Redding, CA. OES must maintain and update the Shasta County Emergency Operation Plan. This acts as a guide to ensure optimum flexibility during emergencies and is the county’s all-hazards plan. The City participates and uses the County’s plan, as well as the Emergency Alert System to transmit emergency information to the public. The Shasta County OES maintains the Emergency Operation Center (EOC). From there, emergency incident responses are coordinated and supported. The main responsibility of maintaining the EOC is to keep staff trained and ready to respond quickly and efficiently in the event of an emergency. The Shasta County OES assists local agencies in emergency preparedness plans and disaster training. The City is in Office of Emergency Services Region III as part of the Shasta Operational Area. This is the region where they request aid. The Shasta County OES is the Law Enforcement Mutual Aid Coordinator for Region III and gives technical advice and assistance to the Sheriff’s Shasta LAFCO 7 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Office on local emergency declarations. They can work directly with the California Governor’s Office of Emergency Services in order to obtain Presidential proclamations for major incidents. Shasta Mosquito Abatement Vector Control District The Shasta Mosquito Abatement Vector Control District (SMVCD) extends from the northern Shasta County boundary to the southern Shasta County boundary, covering about a third of the County. It encapsulates the areas of Lakehead, Mountain Gate, Shasta Lake, French Gulch, Bella Vista, Keswick, Redding, Millville, Palo Cedro, Anderson, Cottonwood, and Shingletown. The SMVCD monitors and controls mosquito populations by focusing on juvenile populations where they are most concentrated and easier to abate through physical, biological, and chemical methods. The SMVCD handles adult mosquito control activities and monitors for other vectors, including ticks and rodents. Telecommunications and Broadband Providers The City of Shasta Lake has a number of broadband providers with home services, including specialized server message block (smb), enterprise, mobile, and line-of-sight providers. Broadband is available throughout most of the City and several small areas are eligible for the California Advanced Services Fund (CASF) infrastructure grants. These grants are for telephone corporations to help bring service to unserved or underserved areas. Solid Waste & Recycling Contractors Solid waste and recycling services are provided by a private entity, Waste Management. Solid waste is flow controlled to the West Central Landfill, located in unincorporated Shasta County southwest of Redding. The facility provides solid waste disposal, recycling, and green waste collection. Municipal residential waste is accepted at the Buckeye Transfer station located in the City of Shasta Lake. The transfer station is owned by Shasta County and operated by Waste Management. Existing and Planned Land Uses Land Use City General Plan 2040 land use designations include: Rural Residential B (RB), Rural Residential A (RA), Suburban Residential (SR), Urban Residential (UR), Urban Residential High (URH), Mixed Use (MU), Village Mixed Use (VMU), Commercial (C), Industrial (I), Industrial Light (IL), Public Facilities (PF), Parks (or improved Open Space) (P), Open Space (OS). Shasta LAFCO 8 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Table 3: City of Shasta Lake Land Use Acreage Land Use Code Sum of Acres Commercial C 118.9 Industrial I 725.3 Industrial Light IL 67.2 Mixed Use MU 884.2 Community Park NP 164.5 Open Space OS 113.9 Public Facilities PF 344.1 Rural Residential A RA 351.2 Rural Residential B RB 701.2 Rural Residential B RB (USA) 71.6 Suburban Residential SR 1426.3 Urban Residential UR 1136.3 Urban Residential High URH 0.2 Urban Residential High A URH-A 5.4 Urban Residential High B URH-B 96.9 Village Mixed Use VMU 37.4 Grand Total 6244.7 The City’s zoning includes Rural Residential (R-R), Interim Residential (I-R), One-Family Residential (R-1), One-Family Mobile Home (R-M), Two-Family Residential (R-2), Multiple-Family Residential (R-3), Multiple-Family Residential – Office (R-4), Mobile Home (T), Mobile Home Park (MHP), City Center Commercial (CC), Village Commercial (VC), Mixed Use (MU), Local Convenience Center (C-1), and Community Commercial (C-2). City Land Use Diagram shown in Figure 2. Zoning Base Zoning in the City is varied with Rural Residential (R-R), Interim Residential (I-R), One-Family Residential (R-1), One-Family Mobile Home (R-M), Two-Family Residential (R-2), Multiple-Family Residential (R-3), Multiple-Family Residential – Office (R-4), Mobile Home (T), Mobile Home Park (MHP), City Center Commercial (CC), Village Commercial (VC), Mixed Use (MU), Local Convenience Center (C-1), Mineral Resource (MR), commercial Recreation (C-R), Commercial- Light Industrial (C-M), Light Industrial (M-L), General Industrial (M), Public Facilities (PF), and Community Commercial (C-2). The City is operating under an interim zoning ordinance that provides consistency with the updated 2040 General Plan. The Interim Zoning Ordinance will be in effect until the City completes the comprehensive development code update. Interim zoning districts match the General Plan Land use designations. Land Use Planning The Planning Division helps with current and long-range planning in the City. They review all land use proposals and ensure compliance with state and local regulations, such as with the City’s General Plan, Housing Element, California Subdivision Map Act, and the California Environmental Quality Act. The Planning and Zoning Divisions lead the implementation of the goals, objectives, and policies of the City as adopted by the City Council. Shasta LAFCO 9 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update The General Plan, Interim Zoning Ordinance, and base Zoning districts regulate land uses in the City. The City’s parcels are assigned a zone district that describes allowable land uses within that zone, land use permit requirements, and site development standards pertaining to setbacks, maximum structural height, landscaping, lighting, parking, and signs. Growth and Population The City’s 2021 population estimate was 10,423. The City General Plan Update 2040 includes 20- year unit and population projections. As shown in General Plan 2040 Table 2-2 an additional 837 units, and an additional population of 2,083 is projected. The population is estimated by calculation of 2.49 persons per housing unit (US Census Bureau, Shasta County 2019). Disadvantaged Communities The Shasta County 2021 Median Household Income (MHI) was approximately $48,257 (US Census Bureau, Table S1901 Income in the Past 12 Months (in 2020 Inflation-Adjusted Dollars). This is 61% of the California 2020 MHI of $78,672. The City is therefore considered to be a disadvantaged community and it is likely that residential areas within and adjacent to the City’s boundary and SOI may also qualify as Disadvantaged Unincorporated Communities (DUCs). The City of Shasta Lake is a Census Designated Place (CDP). The boundary encompasses the entirety of the City. The southeastern corner of Shasta Lake’s CDP boundary borders the northern CDP boundary of the City of Redding. Shasta LAFCO 10 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Figure 2: City Land Uses, from General Plan Shasta LAFCO 11 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Municipal Services City of Shasta Lake provides water, wastewater, stormwater, electric, animal control, circulation planning and street maintenance, parks and recreation services, law enforcement, and emergency management services to the Shasta Lake community and surrounding area within the City Boundary. There are also rental and utility payment assistance programs for many of the services provided by the City. Water Services The City provides clean safe drinking water to the City of Shasta Lake, as well as a small portion of the City of Redding in their Buckeye service area and adequate fire flows for residential, commercial and industrial use. Water Supply The City water supply is received from diverted surface water from Shasta Lake. There are two sets of intakes that draw water from the face of the dam. The City receives raw water to their Fisherman’s Point Water Treatment Plant (WTP) via a Raw Water Pumping Station (RWPS) and transmission line owned and operated by the U.S. Bureau of Reclamation (USBR) located at the base of Shasta Dam. The City of Shasta Lake has the following long-term water contracts: 4,480 Acre-Feet (AF) via a Central Valley Project (CVP) contract with USBR; and 2,000 AF via a transfer agreement with the Anderson Cottonwood Irrigation District (ACID). They have emergency interties with Bella Vista Water District and the City of Redding. Currently, the City uses approximately 60% of their CVP allocation of 4,480 AF. During low precipitation years, the allocation can be drastically reduced, dependent on USBR’s water supply projections. In 2008, the City negotiated a 40-year take-or-pay water transfer with ACID in an attempt to ensure a long-term supply solution and provide drought protection. Before the City’s incorporation, the Shasta Dam Area Public Utilities District (PUD) had a CVP contract with USBR for an unknown amount of water being administered from SCWA. Once incorporated, a portion of the PUD contract was allocated to the City as a shortage supply at first and later as a direct transfer. The City has added this contract into the larger City CVP contract on a permanent basis. Storage and Infrastructure The City’s water system has eight active treated water reservoirs at six different locations. The City has 5.7 million gallons (MG) of storage capacity and one active raw water reservoir totaling 0.17 MG. The City’s storage reservoirs are all ground-level reservoirs that range in volume from 0.17 to 2.9 MG each. Storage tank 1 named Picard was built in 1948 and has a volume of 0.2 MG. The storage tank number 2 named Rouge was built in 1953 and has a volume of 0.2 MG. The 3A storage tank named Shasta Way A was built in 1954 and had a volume of 0.2 MG. The storage tank numbered 4A and named Montana A was built in 2006 with a volume of 2.9 MG. Storage tank 4B named Montana B was built in 1978 and has a volume of 1 MG. Storage tank 5 named Toyon was built in 1971 with volume of 0.6 MG. Finished Tank 1, or FW 1, was constructed in 1942 and has a volume of 0.20 MG. Finished Tank 2, or FW 2, was built in 1948 and has a volume of 0.30 MG. The distribution system has approximately 79 miles of pipeline that range from 1 inch to 24 inches. The Raw Water Pump Station (RWPS) has five pumping units: two 125 horsepower (HP) pumps, one 200 HP pump, one 350 HP pump, and one 400 HP pump. It is currently undergoing design review by USBR for installing upgrades in the next several years. Shasta LAFCO 12 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update From two sets of intakes located at 750 feet and 950 feet within Shasta Dam, raw water is pumped through a single 16 inch raw water transmission line up the hill to the City’s Raw Water Tank and treatment plant. During drought conditions, the RWPS pumping capacity can be affected by the low water levels at Shasta Lake. Demand The City provides water service to the following number and types of connections: 3,549 to Residences, 141 to Multi-Family/Mobile Home Parks, 168 to Commercial/Industrial/Civic uses, 24 to irrigation sites, and nine to schools. Rates The City maintains a water services rate structure, as shown below in Table 2. Table 4: City of Shasta Lake Water Use Rates RESIDENTIAL Tier 1 Rate (per Meter Size Base (100 cubic ft.) 5/8" $31.08 $2.44 1" $70.45 $2.44 COMMERCIAL 5/8" $31.08 $2.63 1" $70.45 $2.63 1.5" $136.06 $2.63 2" $214.79 $2.63 The City will be preparing a new rate study with new rates anticipated in Summer/Fall 2024. Wastewater The City owns, operates, and maintains the wastewater collection system and treatment plant. The City serves approximately 3,800 residential, commercial, industrial, and institutional accounts. Within the City limits, there are more than 500 on-site wastewater treatment systems. Most of these are within City limits, but outside of the current wastewater service area to the west. This area is known as Summit City and their septic tanks are regulated by Shasta County. The system consists of six lift stations, about 58 miles of gravity mains, four miles of force mains, with up to 21-inch pipe sizes conveying flow to the City’s wastewater treatment plant (WWTP) located in southwest corner of the City adjacent to Churn Creek. The WWTP is designed to treat a maximum average dry weather flow (ADWF) of 1.3 million gallons per day (MGD) and a peak wet weather flow of up to 5.3 MGD. Due to water efficiency implementation efforts throughout the City over the last 15 years, the current ADWF being treated has decreased from 0.69 MGD in 2004 to 0.50 MGD in 2022 and 0.58 MGD in 2023. About 80 percent of gravity sewer pipes in the City consist of the original VCP system. The other 20 percent is PVC that has been installed as the collection system expands. Lift Station 1 is a dry pit submersible station consisting of two pumps with a firm capacity of 0.5 MGD. Lift Station 2 is an ejector pot station consisting of one pot with a capacity of 0.06 MGD. Lift Station 3 is a dry pit station consisting of three pumps with a firm capacity of 2.4 MGD. Lift Station 4 is a dry pit submersible station with a firm capacity of 1.44 MGD. Lift Station 5 is a wet pit submersible station with a firm capacity of 2.9 MGD. Lift Station 6 is a wet pit submersible Shasta LAFCO 13 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update station with a firm capacity of 0.31 MGD. There are onsite standby replacement pumps at Lift Stations 1, 3, 4, 5, and 6 to reduce downtime if a pump fails. Stormwater Management Drainage Facilities The City’s storm drain system consists of natural and manmade open channels and ditches, and a system of storm drainpipes, inlets/outlets, area drains and catch basins. New development runoff is commonly controlled with detention basins. Pyrethroid Pesticide Management Pyrethroids are a class of synthetic insecticides found in household pesticides and remain in the environment for a long period of time, frequently transported to aquatic environments by surface runoff. The concentration of these pesticides results in impaired water quality standards and aquatic health; the Central Valley Regional Water Quality Control Board (CVRWQCB) passed a Pyrethroid Pesticide Control Program in 2017 to control the discharge of pyrethroid pesticides. In 2021, the City of Shasta Lake developed a Pyrethroid Management Plan to respond to the CVRWQCB Program. Pyrethroid pesticides are still allowed and sold in City limits, but consumers and businesses are encouraged to reduce their sales of these pesticides. The full Pyrethroid Management Plan can be found on the City’s website. Shasta LAFCO 14 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Figure 3: City Natural Resources and-Flood Zones Shasta LAFCO 15 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Flooding Past City flood events have been localized when precipitation exceeds channel capacity including backyard, garage, and some street flooding. Flooding also occurs in areas adjacent to creeks following prolonged rain events that generate high runoff volume in areas with saturated soils from previous rain events. The Federal Emergency Management Agency (FEMA) Flood Insurance Rate Maps (FIRM) identify several properties in the City within designated flood hazard zones. These areas are shown in Figure 3. The City General Plan 2040 includes policy and programs to reduce flooding hazards in specific areas while minimizing the need for construction of flood control facilities. Electric Services The City of Shasta Lake provides safe, reliable, environmentally friendly electric service at the lowest possible cost consistent with sound business practices to customers within its electric service territory. The City’s customers are served by the Central Valley substation and the Knauf substation. The City has four small solar installations they own and operate located on City facilities. The City serves the following number of customers: 4,288 Residential, 223 Commercial, 16 Industrial, 14 Schools, 18 Civic, and 68 City/Government. City electrical assets include transmission lines, distribution lines, substations, and small-scale generation assets, among others. They own 15 miles of 115 kV transmission lines, about 60 circuit miles of overhead primary distribution lines, and approximately eight miles of underground primary distribution lines. According to the City’s 2040 General Plan, they plan to explore locations and projects for “community solar,” or utility-scale photovoltaic systems that have supporting programs to directly serve the City’s end-users’ electricity needs. Customer-Generator Interconnection Policy The City of Shasta Lake allows their electric service customers to install a permanent Renewable Electrical Generation Facility to offset part or all of the customer’s own electrical requirements and is no more than one megawatt. It is allowed to be located on the customer’s owned, leased, or rented premises and must be interconnected and operate in parallel with the City’s electric grid. The customer pays a one-time fee to help fund the City’s activities related to electric service review, evaluation, inspections, and deactivation/activation during the installation of the Customer-Generator Renewable Electricity Generation Equipment. Animal Control The Animal Control Department strives to provide residents with effective and cost-efficient services through active enforcement of state and local laws, humane sheltering, disposal of stray and unwanted animals, and the promotion of responsible pet ownership and animal welfare. Shasta Lake Municipal Code 6.12.090 describes the requirements for surrendering an animal to the shelter. The surrenderer must have a valid California driver’s license or ID with a valid Shasta Lake address, a City of Shasta Lake utility bill that matches the name and address on the license or ID, licensing through the City of Shasta Lake showing proof of ownership and must pay a fee of $10 for an adult cats or dogs, $25 for a female with a litter, and $5 per weaned puppy/kitten. The same requirements apply to non-owned trapped animals. If a resident traps wildlife within the City, they shall not transport it and call animal control to help release or dispatch the wildlife. Shasta LAFCO 16 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Calls for larger wildlife, such as mountain lions, are now directed to the Department of Fish and Wildlife of California. An impounded animal is held for four days not including the day of impoundment to locate a suspected owner to reclaim their pet. Owned animals not reclaimed within fourteen (14) days will be put up for adoption. When an owner surrenders a pet, the animal will be put up for adoption at the end of four (4) days not including the day of surrender. All adoptions are final. There is an adoption fee of $10 if the animal is already spay/neutered. For a male feline, the alteration fee is $119.50 and $195.50 for a female feline (canine alteration is based on weight). These services include a rabies vaccine, microchip and alteration. Pet owners in the City must have their canines licensed 6.12.011(D). They are available to purchase at City Hall, and the owner must provide proof of vaccination and pay the fee. If an owner requests a reduced licensing fee, they must provide proof of alteration. The fees are $25 for one year for unaltered dogs, or for altered dogs it is $5 for one year, $9 for two years, and $12 for three years. Senior citizens get half off the altered dog fees and pay $5 for one year for unaltered dogs. Circulation Planning, Accessibility and Transportation Management, Street Maintenance The City transportation system serves a mix of local, commuter, recreational, visitor, industrial and commercial trips. Tourists pass through the City for destinations like the Shasta Lake Reservoir and Shasta Dam. Circulation Classification System Principal/Major Arterial Streets: Serve primarily long-distance travel and typically designed as either access-controlled or partially access controlled with limited locations at which vehicles can enter and exit the roadway. Arterials typically have higher posted speed limits because vehicles encounter few or no at-grade intersections. There are currently no roadways in the City that are designated as principal/major arterials. Minor Arterial Streets: Provide service for moderate length trips and distribute traffic to smaller geographic areas than major arterials. Minor arterials are typically designed to provide relatively high overall travel speeds, with minimum through traffic delay. Major Collector Streets: Route traffic from local streets to the arterial roadway network. Major collector streets are typically longer in length, serve higher-density residential and commercial/industrial areas, have higher annual average traffic volumes, have lower connecting driveway densities, are spaced at greater intervals, have higher speed limits, and may have more travel lanes than minor collector streets. Minor Collector Streets: Route traffic from local streets to the arterial roadway network. Minor collector streets are typically shorter in length, serve lower-density residential and commercial/industrial areas, have lower annual average traffic volumes, have higher connecting driveway densities, are spaced at smaller intervals, have lower speed limits, and may have less travel lanes than major collector streets. Local Streets: Provide access for 25 to 50 potential residences. Shasta LAFCO 17 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Active Transportation The City prioritizes infill development to help create opportunities for active transportation by lessening the distance between origins and destinations. The City was involved in the development of the Healthy Shasta Health Impact Assessment and Shasta Walks which help to encourage active transportation. The encouragement of active transportation helps to decrease passenger vehicle use, which in turn reduces greenhouse gas emissions. The Shasta area has had significant investment in bicycle infrastructure. Although, they are generally not well-connected, diminishing their utility. The pedestrian network has also been substantially invested in. Similar to the bike network, the pedestrian network is not complete, having gaps in sidewalks and walkways. To improve active transportation, the City plans to inventory and assess existing and needed repairs, updates, and newly constructed bikeways and sidewalks. In 2018, the GoShasta Regional Active Transportation Plan (GoShasta Plan or Plan) was published and serves as an active transportation plan for the City of Anderson, the Shasta Regional Transportation Agency (SRTA), Shasta County, and the City of Shasta Lake. This Plan provides the current status of active transportation in the region, the goals of the plan, program and project recommendations, and project prioritization standards and funding opportunities. Program and project recommendations cover topics such as pedestrian and bicycle facilities, transit connections, bike theft prevention, employer incentives, pedestrian networks, corridor improvements, and more. The City was an agency partner in the development of the GoShasta Plan, which serves as a critical resource for sourcing active transportation grant funding within the City. Local Road Safety Plan The City was awarded a grant from Caltrans in 2020 to create a Local Road Safety Plan (LRSP), which was published in 2021. The LRSP allowed for the City to conduct an analysis of the roadways, including current collision patterns and high-risk characteristics, and identify mitigation measures to reduce collision severity. To improve the City’s roadway safety, it is important to focus on mitigating high injury collisions and loss of life. According to the stakeholder working group, the emphasis areas should be to find ways to reduce wrong way driving on Shasta Dam Boulevard; evaluate ways to improve pedestrian crossings; promote walking and bicycling; safe routes to school; encouragement and education efforts; evaluate traffic calming options; address COVID-19 related changes to traffic; circulation changes from development projects; and prioritize based on collision frequency, Equivalent Property Damage Only (EDPO) ranking, and crash rates. To combat the identified problem areas, the City plans to prioritize and incorporate strategies in relation to engineering projects, systemic safety applications, education, emerging technologies, enforcement, and emergency response. The engineering and systemic safety strategies include improving city intersections, such as upgrading signage and a potential roundabout. Another possible strategy is to create an education campaign for drivers and pedestrians. The campaign will address safe driving and safe crossing behaviors in order to reduce collisions, injury, and death. The City is considering implementing emerging technologies, such as Intelligent Transportation Systems (ITS) or crash warning systems. The City would like to improve enforcement of traffic laws, as well as emergency response’s ability to provide services. The LRSP lays out a prioritized list of projects that may be incorporated with the Capital Improvement Program (CIP). This funding is very limited and is typically allocated for roadway paving, so additional funding opportunities will likely need to be sourced from grants. The LRSP is updated every five years and the next version is expected to be published in 2026. Shasta LAFCO 18 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Redding Area Bus Authority The City’s transit services are provided by the Redding Area Bus Authority (RABA). Current service issues include a single route serving the City, long wait times (up to an hour) for buses on that route, and a lack of transit stops with shelters. Shasta Regional Transportation Agency (SRTA) The SRTA 2018-2022 Regional Transportation Plan had a goal of starting an on-demand transit pilot project service. The pilot project was to begin a Sunday service in high-demand areas and in the City of Shasta Lake. Based on the project’s real-world performance and lessons, SRTA wanted to explore possible expansion of service area and time of day. According to the SRTA’s Ways and means Report from 2021, the project, named ShastaConnect On-Demand Transit, began in October of 2019, but was paused for 6-months due to COVID-19. It was relaunched in November 2020, with an expanded service area that includes the cities of Shasta Lake and Anderson. In December of 2020, eligibility for social services transportation was also expanded to include anyone 18 years and older. The project pilot continued through 2022 using new funding, and they continue to evaluate the potential for long-term operations. Public Facilities, Parks and Recreation The City is currently the primary provider of parks and recreational facilities. The Gateway Unified School District provides varying athletic facilities but are not available for public use. The Winn- Price field, owned by the City, is used by Central Valley High School for its baseball functions. The City has 1.25 acres of mini parks, 2.92 acres of neighborhood parks, 25.84 acres of community parks, 14.4 acres of special use areas, and 130.52 acres of undeveloped park land. The City identified their needs for specialized facilities and recreation programs. They found their facilities needs include tourist related facilities (museum, campground, golf course), restrooms in parks, group picnic facilities, and a water playground. The recreation program needs include adult softball, adult basketball, adult volleyball, special interest classes, and youth programs (summer recreation and ongoing programming for teens). Since the identification of these needs, many of the needed recreation programs are now offered through a partnership with the City of Redding Parks and Recreation Department, Recreation Division. Additional youth sports activities offered in this partnership may have subsidized costs provided by the City of Shasta Lake. The City plans to create a more accessible, Citywide Park system, including interconnected and accessible facilities, with new and upgraded neighborhood and community parks providing basic recreational opportunities within walking distance of most residents. The City proposes to connect parks and neighborhoods with on and off-street trails. The City has several meeting areas available for use, including the Larry J. Farr Community Center located at 4499 Main Street and the community room at the Shasta Lake Visitor’s Center located at 1525 Median Avenue. The Community Center has one event room available to rent and has a capacity of 300 max, or 280 seated. A full day, 6 hours or more, costs $600 and a partial day, 6 hours or less, costs $400. Local nonprofits get a 50 percent discount. The rental has a cleaning deposit of $200 with no alcohol and $500 with alcohol, and comes with 260 stacking chairs, 10 8’ rectangular tables, 32 6’ round tables, and a basic AV system. The Visitor Center’s meeting room has a max capacity standing or seated of 30, costs $15/hour, and has no cleaning deposit. The Community Center is open Monday through Friday 8am to 10pm and from 8am to 12am on the weekend. Shasta LAFCO 19 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Figure 4: Public Facilities, Parks and Recreation Shasta LAFCO 20 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Law Enforcement The City contracts with the Shasta County Sheriff's Office for law enforcement services within City limits. The Shasta Lake station is located at 4488 Red Bluff Street adjacent next to Shasta Lake City Hall and primarily serves the incorporated areas of the City. It is their goal to maintain a safe and secure environment for community members and visitors through fair and ethical law enforcement practices. In addition to general law enforcement services, the Sheriff’s Office operates the Lake Shasta Boating Safety Unit, Shasta County Jail, Shasta County Coroner’s Office, the Office of Emergency Services, Search and Rescue, K-9, Bomb Squad, Dive Team, Special Weapons and Tactics (SWAT), and Citizens Volunteer Patrol. They also provide investigative services for major crimes, such as homicide, sexual assault, and robbery. Emergency and non-emergency dispatch is provided by SHASCOM (Shasta Area Safety Communications Agency), a local joint powers agency. Shasta Lake substation staffing includes one Lieutenant (Station Commander), two Sergeants, nine Deputies, two Community Service Officers, and two Cadets. Emergency Preparedness Flooding, Natural Resources Surface Water The three major creeks in the City are Churn Creek, Salt Creek, and Moody Creek, each of which drains sizeable areas ranging between 2,400 and 6,000 acres. Salt Creek collects runoff from the central core of Shasta Lake and converges with Churn Creek in the City of Redding. Moody Creek drains a small area in the northeastern area of the City. Other streams include Rich Gulch, Little Churn, Nelson and Rancheria Creeks. The City’s topography and drainage patterns generally flow northwest to southeast. The Sacramento River Watershed Program (SRWP) identifies no comprehensive Churn Creek or Stillwater Creek water quality studies and no known studies prepared for other streams within the City, although some data exists from periodic sampling by state water resource agencies and from the City’s WWTP which discharges treated effluent to Churn Creek. Available data indicates that water quality is generally good; however, there have been concerns with turbidity and suspended solids from channel erosion sources. High sediment loads can be carried to the Sacramento River during peak runoff events. There is also a potential for elevated bacterial concentrations from urban runoff and failing septic systems. The federal Clean Water Act Section 303(d)(1) requires states to identify surface waters that do not meet applicable water quality standards (impaired water bodies) and prioritize such surface waters for the purposes of developing a total maximum daily load (TMDL). According to the SWRCB 2020-2022 Integrated Report, there are no impaired water bodies within the City limits on the 303(d) list (SWRCB, 2022). The closest impaired water body located near the City is the Sacramento River. Groundwater and Groundwater Recharge The DWR is responsible for designating State groundwater basins. Designated groundwater basins reflect where most of the groundwater production in the State occurs. The City of Shasta Lake is not included in a State-designated groundwater basin. Non-basin areas generally consist of impermeable rocks, where groundwater is found in fractures or other voids. In non-basin areas, groundwater typically yields quantities sufficient only for limited domestic use or for agricultural stock use (DWR, 2021). Groundwater use in the City has been limited to a few domestic wells for individual single-family homes. Although not a considerable source of water Shasta LAFCO 21 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update supply, non-basin areas provide for groundwater recharge, which occurs when water seeps into the ground to replenish underground aquifers. The City is located immediately north and west of the Enterprise Groundwater Subbasin, and recharge within the City may benefit the aquifer system. Groundwater recharge in the City is mostly by infiltration of stream flows. However, extensive use of groundwater basins within the City SOI for domestic purposes is not possible. Wildfire The 2019 City of Shasta Lake Wildfire Mitigation Plan for the City’s Electric Department and the 2016 Shasta County Community Wildfire Protection Plan (CWPP) lay out wildfire prevention priorities for the City. The 2016 Shasta County Community Wildfire Protection Plan (CWPP) is being updated, which may encourage the City to develop their first CWPP. The City continually works on wildfire mitigation by focusing on the ground defensible space projects in partnership with local agencies such as Western Shasta RCD, and through planning documents like the hazard mitigation plan and wildfire mitigation planning for the Electric Utility. The City has been proactive with wildfire prevention efforts by completing fire fuel reduction projects in fire-prone areas. Planned fuel reductions include removal of dense brush and trees, woody debris distribution, as well as removal and trimming of hazardous trees and vegetation management. The City has also been very successful over the last 10 years in obtaining wildfire prevention grants and has implemented these grants to perform wildfire mitigation work at various locations throughout the City. Previously, the City was awarded $1.45 million in funding from CAL FIRE for a large hazardous fire fuel reduction project. The project consisted of approximately ±272 acres of hazardous fuel clearing in the northern and western parts of the City and its surrounding areas. Most recently in August 2023, the City received a $1.37 million grant from CAL FIRE for fuel reduction on 56 acres of land in the City. The City borders hundreds of acres of federal lands, dense with brush and trees, on rugged terrain, paired with increasingly dry conditions and additional grant funding is ongoing at any time. To date, the City has received over $3.1 million in grant funding for wildfire prevention. Local Responsibility Area (LRA) fire protection is provided by the Shasta Lake Fire Protection District. Those areas may still include areas of flammable vegetation and the wildland urban interface (WUI). Besides a few federal properties located within the City, it is considered an LRA. State Responsibility Areas (SRAs) are lands in the state where CAL FIRE has legal and financial responsibility for wildfire protection. CAL FIRE is in charge of fire hazard classifications and building standard regulations in these areas. The areas are defined as unincorporated county areas, not federally owned, that have watershed, range, or forage values. CAL FIRE adopts and updates SRA boundaries every five years. Some areas around the City are considered SRAs. According to CAL FIRE’s Fire Hazard Severity Zones in State Responsibility Areas interactive map, the City is surrounded by Very High and High severity zones. Shasta LAFCO 22 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Figure 5: Fire Risk, Wildfire Protection-Responsibility Areas Shasta LAFCO 23 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update City Utility and Rental Assistance Resources City of Shasta Lake Life Line Rate Program This program provides a discount on customers monthly electric, water, and sewer utility bill for those aged 62 or older or are disabled and fall under income guidelines. City of Shasta Lake SHARES Program Every 12 months, the program offers financial assistance to utility customers in the area. LiHEAP Program The Home Energy Assistance Program helps give assistance with home energy bills. Customers may apply every 12 months. The amount of assistance depends on income, household size, funding, and current priority plan. Self Help Home Improvement Program (SHHIP) LIHEAP Weatherization Program The California Department of Community Services and Development (CSD) funded the Low- Income Home Energy Assistance Program (LIHEAP) and Department of Energy Weatherization Assistance Program (DOE WAP). Veterans Resource Center (VRC) Supportive Services for Veterans and Families (SSVF) Veterans can receive funding to pay for motels, rent payments, and utility payments from the VRC’s SSVF funding. Shasta County Tenant Based Rental Assistance Program Low-income households can receive direct assistance to pay for rent through the TBRA funds. TBRA is a rental subsidy that helps make up the difference between what a renter is able to afford and the actual rent for a home. Federal Housing Administration (FHA) Through this program, homeowners that have an FHA-insured single family home mortgage and trouble making payments due to COVID-19 may receive assistance. Shasta LAFCO 24 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Financial Overview Budget Information The City of Shasta Lake adopts biennial budgets for each of two fiscal years running from July 1st to June 30th. The most recent budget for the City for FY2022-24 (FY22-23 & FY23-24) was adopted in June 2022. As such, the years under review for this report span from FY 2018-20 to FY 2022-24. The City’s budget is generally divided into its major governmental and enterprise funds. Governmental funds are utilized to operate the day-to-day functions and responsibilities of the City, as well as grants. The City uses enterprise funds to account for utilities. In total, the City’s major governmental funds include: • General Fund - accounts for the resources to carry out basic governmental activities of the City such as general government, public protection, community development, public ways and facilities, planning, and culture and recreation services. • State Trafficway Fund - for transportation revenues and expenditures. • CDBG Project Fund - for CDBG program funding primarily from grant revenues. The City has proprietary funds and uses internal service funds to report activities that provide supplies and services for the City’s other programs and activities such as the City’s maintenance and public works operating costs. The internal services funds are reported with governmental activities in the Government-Wide Financial Statements. The City’s proprietary funds include: • Water Fund - accounts for activity related to providing customers with water service and billing for water service provided by the City. • Electric Fund - accounts for activity related to providing customers with electric service and billing for electric service provided by the City. • Wastewater Fund - accounts for activity related to providing customers with wastewater service and billing for wastewater service provided by the City. Internal Service: • Internal Service Funds (ISF) - accounts for the City’s motor pool and public works departments, which provide services to other departments on a cost reimbursement basis. Other: • Private-Purpose Trust Funds - accounts for fiduciary activities that (a) are not required to be reported in pension (and other employee benefit) trust funds or investment trust funds and (b) are held in a trust in which the assets are (a) administered through a trust in which the government itself is not a beneficiary, (b) dedicated to providing benefits to recipients in accordance with the benefit terms, and (c) legally protected from government creditors. • Custodial Funds - accounts for fiduciary activities that are not required to be reported in pension (and other employee benefit) trust funds, investment trust funds, or private- purpose trust funds. These include unapportionable property taxes and other custodial funds. The General Fund is Shasta Lake’s principal discretionary funding source and covers general government, public protection, community development, public ways and facilities, planning, and culture and recreation services. The City also maintains fiduciary funds used to account for resources held for the benefit of parties outside the government. Shasta LAFCO 25 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Table 4: City of Shasta Lake Budgets Revenue Expenditures FY 2018-20 FY 2020-22 FY 2022-24 FY 2018-20 FY 2020-22 FY 2022-24 General Fund $15,633,430 $19,064,385 $18,838,676 $8,273,524 $20,547,64 $21,718,171 Special Revenue Funds Water Plant & Facilities $300,300 $360,000 $360,000 $17,377 $18,436 $18,436 Electric Plant & Facilities $61,000 $60,000 $60,000 $3,530 $3,745 $3,745 WWr Plant & Facilities $414,767 $290,226 $495,000 $484,691 $486,104 $510,431 Parks Plant & Facilities $101,000 $120,000 $120,000 $5,844 $6,200 $6,200 CDBG Project Fund $0 $300,000 $0 $0 $300,000 $0 CDBG Housing Rehab $4,000 $0 $0 $54,365 $100,000 $100,000 CDBG HOME Program $600,000 $700,000 $200,000 $552,890 $654,000 $603,000 Housing Authority $0 $0 $0 $31,500 $110,000 $17,000 Trafficway - $1,344,991 $3,786,587 - $2,634,288 $1,735,824 Transportation - $1,294,000 $1,480,000 - $1,136,868 $698,953 Transportation/Traffic $2,163,714 - $3,140,860 - - Law Enforce Grant $200,000 $200,000 $200,000 $200,000 $200,000 $100,000 Grant Fund $0 $0 $3,350,875 $0 $0 $1,873,457 Debt Services Fund 1995 WW Treatment $502,000 $500,000 $500,000 $478,000 $458,773 $228,370 Riddle Rd Water Bond $7,500 $7,500 $7,500 $7,000 $6,600 $3,150 David-Grunsky Loan $23,200 $23,000 $0 $26,868 $22,154 $0 Enterprise Funds Water $7,926,785 $8,240,024 $8,240,024 $6,484,795 $8,312,638 $6,668,790 Electric $41,458,650 $44,370,195 $57,941,027 $43,388,117 $48,809,583 $30,068,877 Wastewater $6,799,738 $6,951,938 $7,458,552 $5,476,801 $9,536,368 $8,421,578 Industrial Park $114,000 $100,000 $100,000 $184,035 $164,031 $78,720 Internal Service Funds Motor Pool $1,610,434 $1,845,548 $2,646,025 $1,546,856 $1,745,548 $1,132,908 Community Facils Dist. $110,500 $140,000 $140,000 $114,510 $114,510 $67,255 Public Works $4,290,992 $4,781,645 $5,316,458 $4,349,992 $4,781,645 $2,598,464 Total All Funds $81,625,235 $89,187,726 $111,240,724 $81,751,560 $98,332,154 $129,067,218 Budgeted General Fund revenues for FY2022-24 totaled $18.8 million. General Fund monies are primarily drawn from charges for services and taxes which account for over eight-tenths or 80.8% of the budgeted total. The remaining two-tenths of the General Fund monies are drawn from revenue from other agencies, other revenue, licenses and permits, revenue from use of money, and fines and forfeitures. Budgeted General Fund revenues have increased over the corresponding five-year study cycle by 21.5%. Shasta LAFCO 26 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Table 5: City of Shasta Lake Budgeted General Fund Revenues General Fund – Budgeted Revenues FY 2022-24 % of Fund Charges for Services 5,892,383 31.3% Taxes 419,200 2.2% Revenue from Other Agencies 2,233,000 11.9% Other Revenues 9,229,933 49.0% Licenses and Permits 18,500 0.1% Revenue from Use of Money 150,000 0.8% Fines and Forfeitures 895,660 4.8% Totals $18,838,676 100.0% Budgeted General Fund expenses for FY2022-24 totaled $21.7 million. Budgeted expenses for public safety, customer services, central services, and personnel and labor relations make up almost three-fourths or 72.4% of all allocated General Fund costs. Notably, the percentage of General Fund allocations for City Manager, development services, personnel and labor relations, animal control, customer services, and City Council have increased over the five-year study cycle by approximately and are the primary factors underlying an overall rise in General Fund budgeted expenses of 94.6%. Table 6: City of Shasta Lake Budgeted General Fund Expenses General Fund – Budgeted Expenses FY 2022-24 % of Fund Public Safety 8,686,834 40.0% Customer Services 2,825,107 13.0% Central Services 2,164,433 10.0% Personnel & Labor Relations 2,042,646 9.4% City Manager 1,607,500 7.4% Development Services 1,578,296 7.3% Parks 900,507 4.1% Animal control 796,573 3.7% Public Services 514,308 2.4% Capital Outlay - General 214,445 1.0% Finance Services 161,000 0.7% Building Services 98,000 0.5% City Council 83,772 0.4% Capital Outlay - Public Ways 44,750 0.2% Totals $21,718,171 100.1% The General Fund only accounts for approximately 16.9% of the City’s total revenues. The other 83.1% comes from the City’s special revenue, debt service, enterprise service, and internal service funds and that help support infrastructure maintenance and improvements. A summary of the City’s total budgeted revenues and expenditures by fund type is provided below in Tables 7 and 8. Shasta LAFCO 27 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Table 7: City of Shasta Lake Budgeted Revenues by Fund Type Budgeted Revenues by Fund Type FY 2022-24 % of Fund General Fund 18,838,676 16.9% Special Revenue Funds 10,052,462 9.0% Debt Service Funds 507,500 0.5% Enterprise Funds 73,739,603 66.3% Internal Service Funds 8,102,483 7.3% Totals $111,240,724 100.0% Table 8: City of Shasta Lake Budgeted Expenses by Fund Type Budgeted Expenses by Fund Type FY 2022-24 % of Fund General Fund 21,718,171 16.8% Special Revenue Funds 10,448,600 8.1% Debt Service Funds 465,888 0.4% Enterprise Funds 88,430,867 68.5% Internal Service Funds 8,003,692 6.2% Totals $129,067,218 100.0% Actual Total Revenues and Expenses The City of Shasta Lake most recent fiscal year actuals ended in $8.8 million in General Fund revenues and is an increase of $0.367 million from the prior fiscal year. The average total revenue for the five-year study period is $8.3 million. Actual revenues have increased 21.4% and largely comprise of sales taxes and assessments. A summary of recent actual revenues in the General Fund follows. Table 9: City of Shasta Lake Actual Revenues Actual Revenues FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 Average Trend Actuals Actuals Actuals Actuals Actuals Taxes and 2,545,804 3,011,001 3,483,183 3,795,954 3,297,672 3,226,723 29.5% Assessments Licenses and 134,205 188,582 233,871 308,509 289,917 231,017 116.0% Permits Fines -Forfeitures 13,838 8,779 8,455 6,904 5,562 8,708 (59.8%) Money - Property 13,838 6,873 109,982 120,184 21,808 54,537 57.6% Intergovernmental 854,904 871,379 894,508 1,052,793 1,296,828 994,082 51.7% Services Charges 3,671,721 3,781,525 3,746,539 3,842,408 3,848,113 3,778,061 4.8% Other Revenues 9,267 10,788 76,384 32,283 32,536 32,252 251.1% Totals $7,243,577 $7,878,927 $8,552,922 $9,159,035 $8,792,436 $8,325,379 21.4% The City of Shasta Lake’s most recent fiscal year General Fund actuals ended in 9.6 million in expenses and is an increase of $1.7 million from the prior fiscal year. The average total expenses for the five-year study period are $9.0 million. Actual expenses have increased 41.9%. The average operating and total margin based on the five-year study cycle is (8.8%) and (25.8%), respectively. A summary of recent actual expenses, operating and total margins in the General Fund follows. Shasta LAFCO 28 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Table 10: City of Shasta Lake Actual Expenditures Actual FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 Average Trend Expenditures Actuals Actuals Actuals Actuals Actuals General 2,392,659 2,505,638 2,808,056 2,945,096 3,427,574 2,815,805 43.3% Government Public Safety 2,876,402 3,116,529 3,260,354 3,462,465 3,825,125 3,308,175 33.0% Public Ways and 43,986 47,025 49,464 67,740 138,445 69,332 214.7% Facilities Planning 613,211 656,802 551,883 587,176 706,800 623,174 15.3% Culture and 193,793 309,626 297,571 316,592 283,411 280,199 46.2% Recreation Community - 6,930 - - - 1,386 N/A Development Debt Service 9,487 43,536 73,969 273,514 777,752 235,652 8098.1% Capital Outlay 613,869 6,424,840 617,388 176,475 408,118 1,648,138 (33.5%) Totals $6,743,407 $13,110,926 $7,658,685 $7,829,058 $9,567,225 $8,981,860 41.9 % Table 11: City of Shasta Lake Operating Margin Operating Margin FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 Average Trend Actuals Actuals Actuals Actuals Actuals Operating Revenues 7,243,577 7,878,927 8,552,922 9,159,035 8,792,436 8,325,379 21.4% Operating Expenses 6,743,407 13,110,926 7,658,685 7,829,058 9,567,225 8,981,860 41.9% Totals 6.91% (66.4%) 10.5% 14.5% (8.8%) (8.7%) (227.6%) Table 12: City of Shasta Lake Total Margin Total Margin FY 2016-17 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 Average Trend Actuals Actuals Actuals Actuals Actuals Total Revenues 9,720,982 9,804,803 11,707,038 11,748,351 11,281,946 10,852,624 16.1% Total Expenses 9,165,903 14,701,492 9,797,871 18,472,888 14,196,305 13,266,892 54.9% Totals 5.7% (49.9%) 16.3% (57.2%) (25.8%) (22.2%) (552.4%) Financial Statements The City of Shasta Lake contracts with an independent auditor to prepare an annual report to audit the City’s financial statements in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. This includes auditing the City’s financial statements with respect to verifying overall assets, liabilities, and net position. The current independent auditor is Smith & Newell, CPA. The City of Shasta Lake’s most recent audited financial for the five-year study cycle was issued for 2021-2022. The City experienced a significant improvement as the overall net position (full accrual basis) increased by 18.6% from $112.3 million to $133.2 million. The independent auditor’s report did not identify any notable weakness or concerns in the City’s accounting policy and/ or practices. A detail of the year end totals and trends during the report period follows with respect to assets, liabilities, and net position. ‐ Shasta LAFCO 29 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Table 13: City of Shasta Lake Five-Year Study Period FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 Assets 138,044,589 153,261,628 166,454,200 173,507,611 Liabilities 23,789,148 29,673,489 44,796,954 39,857,173 Net Deferred Resources Net Position $110,212,147 $120,603,904 $121,388,559 $133,154,982 Net Position Change $10,391,757 $784,655 $11,766,423 Agency Assets The City of Shasta Lake’s audited assets at the end of 2020-2021 totaled $173.5 million and reflect an increase of $7.1 million from the prior fiscal year. Assets are items of value held by the City, such as cash, investments, fixed assets, etc. Assets that are classified as current assets have the expectation they could be liquidated within a year and represent $62.0 million – or 35.7% of the total assets – and largely tied to cash and investments and receivables. Assets classified as non current assets and not readily liquid within a year make up the remainder and total $111.5 million ‐ and involve capital assets tied to property, infrastructure, and equipment. Overall, the City’s total audited assets have increased by $44.9 million – or 34.9% – over the corresponding five- year study cycle. Shasta LAFCO 30 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Table 14: City of Shasta Lake Assets: Current & Non-Current Assets FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 Average Trend Current Assets Cash and 27,427,204 27,812,148 33,531,894 44,476,732 49,864,848 Investments Accounts 2,688,526 3,299,486 3,323,887 4,187,868 4,776,826 Receivable Interest Receivable 21,298 25,176 103,978 93,917 34,242 Taxes Receivable 364,601 466,819 781,961 482,279 538,736 Intergovernmental 852,796 2,375,489 481,626 430,864 1,933,353 Receivable Assessments 3,451,422 3,316,729 3,176,036 3,163,002 3,002,002 Receivable Deposits 643,198 593,874 412,700 428,849 543,406 Prepaid Costs 628,119 116,468 191,363 94,821 112,252 Inventory 364,236 392,891 429,001 437,894 486,715 Internal Balances 0 0 0 0 0 Cash Fiscal Agents 678,927 677,316 Total Current 36,441,400 38,399,080 42,432,446 54,475,153 61,969,696 46,743,555 70.1% Non-Current Assets Restricted Cash 855,542 2,326,316 1,664,576 968,530 382,772 and Investments Loans Receivable 4,896,494 5,177,155 4,819,976 4,553,546 4,279,123 Land Held for 594,927 594,927 594,927 534,984 534,984 Resale Capital Assets - 9,756,722 17,941,860 25,601,771 7,149,149 10,898,968 Nondepreciable Capital Assets - 74,260,674 73,605,251 78,147,932 98,454,437 95,202,422 Depreciable Net OPEB 1,826,165 318,401 239,646 Total Non-Current 92,190,524 99,645,509 110,829,182 111,979,047 111,537,915 105,236,435 21.0% TOTAL ASSETS $128,631,924 $138,044,589 $153,261,628 $166,454,200 $173,507,611 $151,979,990 34.9% Agency Liabilities The City’s 2020-2021 audited liabilities total $39.9 million and reflect a decrease of $4.9 million from the prior fiscal year. Liabilities are monies due, such as accounts payable, loans and bonds payable, money due to other governmental agencies, etc. Liabilities that are classified as current liabilities have the expectation, they will become due within a year and represent $7.4 million of the total liabilities – and largely tied to accounts payable, accrued payroll, and compensated absences. Liabilities classified as non current and considered longer termed debts make up the remainder of the total amount. Overall, the City’s total audited liabilities ‐ increased by $22.3 million or 127.0% over the corresponding five-year study cycle. Shasta LAFCO 31 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Table 15: City of Shasta Lake Liabilities: Current & Non-Current Liabilities FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 Average Trend Current Liabilities Accounts Payable 852,264 2,168,488 1,917,473 865,395 4,113,603 Retentions Payable 29,568 474,698 787,370 25,943 169,777 Salaries + Payable 199,238 212,548 222,234 279,316 297,205 other Governments 848,762 1,154,832 1,246,801 1,124,130 1,740,509 Deposits Payable 551,916 547,481 616,218 657,402 675,535 Interest Payable 105,588 105,747 135,600 389,791 405,591 Unearned Revenues 24,867 43,955 26,233 22,408 22,263 Total Current $2,612,203 $4,707,749 $4,951,929 $3,364,385 $7,424,483 $4,612,150 184.2% Non-Current Liabilities Long-term debt - 1 year 757,192 794,951 800,121 1,570,880 1,376,403 Long-term debt - 1 yr. + 7,146,347 9,243,168 14,687,466 31,685,842 30,825,604 Net Pension Liability 6,485,096 7,588,576 7,416,000 8,175,847 230,683 Total OPEB liability 555,814 1,454,704 1,817,973 - - Total Non-Current $14,944,449 $19,081,399 $24,721,560 $41,432,569 $32,432,690 $26,522,533 117% TOTAL LIABILITIES $17,556,652 $23,789,148 $29,673,489 $44,796,954 $39,857,173 $31,134,683 127% Net Position The City of Shasta Lake’s audited net position at the end of 2021-2022 totaled $133.2 million and reflects an increase of $11.8 million from the prior fiscal year. The net position represents the difference between the City’s total assets and total liabilities along with adjusting for deferred resources (i.e., pension outflows and inflows). Most of the net position – $83.4 million – is tied to capital assets. Capital assets are generally a tangible or intangible asset that is used in operations and that has a useful life of more than one year, such as land and improvements to land; buildings and building improvements; vehicles; machinery; equipment; and wastewater, water, and roadway infrastructures. The remainder is comprised of restricted monies tied to establishing new pension related trusts in FY2021. The unrestricted portion of the City’s net position as of the last audited fiscal year totaled $34.3 million. This represents the accrued spendable portion of the fund balance and is only subject to discretionary designations (commitments and assignments) established by the City. The City has sufficient reserves to cover its expenses in the event of a fiscal emergency, such as an economic recession or natural disaster. Table 16: City of Shasta Lake Net Position Category FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 Average Trend Capital Assets 76,514,842 81,900,784 87,801,684 82,058,020 83,364,994 82,328,065 9.0% Restricted 9,899,676 4,941,877 5,078,097 10,445,637 15,502,999 9,173,657 56.6% Unrestricted 25,880,514 23,369,486 27,724,123 28,884,902 34,286,989 28,029,203 32.5% Net Position $112,295,032 $110,212,147 $120,603,904 $121,388,559 $133,154,982 $119,530,925 18.6% Shasta LAFCO 32 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Debt – Budget source The David-Grunsky Loan is repaid through a tax override against properties inside the improvement area. The load is for the debt service requirements to retire the voter-approved override that was issued in 1974 to finance the construction of a water system in Summit City. The Wastewater Reclamation Facilities Assessment District is a fund for the debt service requirements for retiring an assessment in September 1996 which financed the expansion for the Wastewater Treatment Plant. The first payment was in September 1995 and will mature in September 2034. Riddle Road Waster Bond accounts for the debt service needed to retire the voter-approved assessments issued in August of 1989 to finance the construction costs for the Riddle Road water system. The first payment was in March 1990 and will mature in September 2029. Financial Governance Budgets are approved annually by the City Council which then establishes the scope of work and improvements that can be performed. Annual budgets and audits are available upon request to the District. Annual reporting is provided to the State Controller’s Office per state law. The City is a participant in Small Cities Organized Risk Effort (SCORE), the purpose of which is for member cities to share in the administrative costs of providing liability and workers’ compensation insurance. SCORE is composed of 18 member cities and is governed by a board of directors appointed by the member cities. Water Water System administrative charges include permits, insurance, depreciation, administrative fees, Motor Pool, and debt expense. Water Distribution services include maintaining distribution mains and service lines, performing routine and emergency maintenance on valves/boxes, meters/boxes and fire hydrants. Water Supply and Treatment services include administering the water conservation program, obtaining an adequate supply of domestic water and treating the water to meet (as a minimum) State health standards. The Water Department is responsible for providing adequate capacity for future growth with infrastructure development and replacement. The capital outlay budget includes capital improvements and capital replacement of the Water Treatment Plant and distribution facilities. Wastewater Administrative charges for the Wastewater System Utility include expenses such as permits, insurance, depreciation, administrative fees, Motor Pool, and debt expense. Wastewater Treatment and Reclamation is responsible for processing the City’s wastewater to meet state health standards and to provide reclaimed water for industrial and agriculture/landscaping uses. The Department includes the City’s reclamation plant and spays fields surrounding the plant as well as the 410 acre reclamation pond. Wastewater Collection is responsible for all types of maintenance, installation, operation, and repair of approximately forty miles of sewer lines and the maintenance of seven pump stations located throughout the City. Capital Outlay provides for the funding of capital improvements and capital replacement of materials and equipment at the Wastewater Treatment Plant and in the Wastewater Collection System. Electric Electric System Utility administrative charges include insurance, depreciation, administrative fee, lease payments, debt service and Public Benefit Program expenses. Electric operations are responsible for providing electric utility service to customers within its electric service territory. The Department operates and maintains the distribution system, establishes electric service to Shasta LAFCO 33 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update new customers per applicable City policies, plans for future growth, and handles infrastructure replacements. Electric resource management is responsible for electric energy resource and plant management, including the planning, scheduling, purchasing and sales of electric power for the City. The capital outlay budget includes funding for capital replacements, facility improvements, additions, distribution system automation, wildfire mitigation, SMART grid technology, and long-term utility system development. Animal Control The Animal Control Department carries out the California Health and Safety agenda for the public’s health and animal welfare being. The Department is responsible for collecting stray animals, enforcing the City’s Animal Control Ordinance, ensuring animals are licensed and have requisite inoculations, coordinate rabies clinics, spaying and neutering of animals, and is responsible for issuing nuisance citations to local citizenry who do not abide by the City’s ordinance in support of neighborly pet ownership. Public Facilities, Parks and Recreation The Parks & Recreation Department is responsible for the maintenance of all City park facilities. Recreation services include the administering summer programs. In partnership with the Gateway Unified School District, and the Shasta Lake Garden Project, the Park Department works to help beautify the City. Law Enforcement, Public Safety Services The Contract services agreement between the City of Shasta Lake and the Shasta County Sheriff’s Offices is a year-to-year agreement. The partnership encompasses law enforcement personnel, equipment, services which include traffic enforcement. The alliance with the community, staff, and the volunteer patrol. This Contract is overseen by the City Manager Department. Public Services Under the direction of the City Engineer, the Public Services program is dedicated to the efficient design, construction, operation, and maintenance of public works systems and programs that protect and enhance the quality of life of the citizens of Shasta Lake. Development Services Department: Building, Planning, and Code Enforcement Development Services is responsible for building, code enforcement, current and long-range planning in the City. The Planning Division reviews land use proposals and ensures compliance with federal, state, and local regulations. The Division provides direction and leadership in implementing the goals, objectives, and policies of the City as adopted by the City Council. The Building Division provides enforcement of minimum standards to safeguard life, health, property, and public welfare. The Division is responsible for Code Enforcement and the abatement of dangerous buildings, site conditions, and accumulations of junk and debris on private property. Shasta LAFCO 34 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update Municipal Service Review Determinations (1) Growth and population projections for the affected area a) The estimated 2021 City population was 10,423. Based on housing and population projections from the City’s General Plan 2040, there could be an additional population of 2,083 and 837 additional housing units by 2040. (2) The location and characteristics of any disadvantaged unincorporated communities within or contiguous to the sphere of influence a) Shasta County had a 2021 MHI of $48,257 which is 61% of the California MHI and qualifies the County as a disadvantaged area. As such, it is likely that DUCs exist adjacent to the City boundary and should be considered carefully prior to any annexations. 3) Present and planned capacity of public facilities and adequacy of public services, including infrastructure needs or deficiencies. a) The City is a retail water supplier that receives water from Lake Shasta. They have an existing contract through the Central Valley Project for 4,480 AF per year of which they are utilizing approximately 60%. They also have an additional 40 year take-or-pay transfer contract with ACID for 2,000 AF per year. As of 2023, the City has 3,549 water service connections. b) The City provides wastewater collection and treatment to 3,800 connections. The WWTP is designed to treat a maximum average dry weather flow of 1.3 million gallons per day (MGD) and a peak wet weather flow of up to 5.3 MGD. The City has decreased the average dry weather flow through water efficiency implementation efforts. c) The City of Shasta Lake provides safe, reliable, environmentally friendly electric service to a total of 4,627 customers of which 93% are residential. The City is interested in developing a community solar or utility-scale photovoltaic systems to help serve customer needs. d) The City’s Animal Control Department strives to provide residents with effective and cost- efficient services through active enforcement of state and local laws, humane sheltering, disposal of stray and unwanted animals, and the promotion of responsible pet ownership and animal welfare. e) The City also provides a number of other services including stormwater conveyance, street maintenance, short and long term planning, and economic development. The City strives to provide excellent service to all its residents. f) The City currently has a total of 174.93 acres of park land of which 75% is undeveloped open space. The Cities of Shasta Lake and Redding have partnered to subsidize recreation programs that are now available to Shasta Lake residents. 4) Financial ability of agencies to provide services. a) The City adopts a biennial budget and provides for regular audits. The City’s overall net position increased by 18.6% over the five year review period from $112.3 million to $133.2 million. 5) Status of and, opportunities for, shared facilities a) Shasta Lake currently obtains fire services from the Shasta Lake Fire Protection District and law enforcement services from the Shasta County Sheriff’s Office. The City of Shasta Lake has also partnered with the City of Redding on recreational services are area residents. Shasta LAFCO 35 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update 6) Accountability for community service needs, including governmental structure and operational efficiencies. a) The City of Shasta Lake is governed by a five-member council elected to staggered four year terms. Meetings are held twice monthly and agendas are posted to the City’s website at least 72 hours in advance of the meeting. b) The City maintains a website in accordance with state law that includes information about all City departments and public utilities including water, wastewater, and electricity. 7) Any other matter related to effective or efficient service delivery. a) No others noted. Sphere of Influence Determinations In order to carry out its purposes and responsibilities for planning and shaping the logical and orderly development of local governmental agencies, to advantageously provide for the present and future needs of the county and its communities, the commission shall develop and determine the sphere of influence, as defined by GC § 56036, and enact policies designed to promote the logical and orderly development of areas within the sphere. In determining each local agency’s SOI, the commission shall consider and prepare a written statement of its determinations with respect to the following: (1) Present and planned land uses in the area, including agricultural and open-space lands. a) A wide range of land uses exist within the City of Shasta Lake. The most prominent land use type is Suburban Residential (23%) followed by Urban Residential (18%). Combined, residential designations make up 60% of all land uses within the City. b) Existing and planned uses in the City also include Public facilities parks and open space designated lands. The General Plan 2040 includes a land use policy that states: ‘As the community grows and faces development pressure along I-5 and on its fringes, the City must be both deliberate and resolute in its commitment to preserve the character and economic vitality of downtown. The City shall encourage economic growth and continued improvement in the downtown area, on already-developed areas, and on underutilized parcels.’ This should be sufficient for planned growth without further Sphere of Influence expansion. (2) Present and probable need for public facilities and services in the area. a) The City of Shasta Lake remains populated and is expected to have an annual growth rate of 1% resulting in an estimated population of 12,506 by 2040. This indicates there is a continued need for services in the area. (3) Present capacity of public facilities and adequacy of public services that the agency provides or is authorized to provide. a) City services appear adequate to serve current and future needs. The City is currently using less than its contracted annual water allocation from the CVP and has excess wastewater capacity to meet future demands. The City has also been able to increase its overall net position, indicating adequate financial planning. Shasta LAFCO 36 Commission Approved – December 2023 City of Shasta Lake MSR/SOI Update (4) Existence of any social or economic communities of interest in the area if the commission determines that they are relevant to the agency. a) The City of Redding, located directly south of the City of Shasta Lake provides commercial opportunities, service industry, and social activities for residents and visitors. It is the largest of the County’s three cities with an estimated 2020 population of 93,393. (5) For an update of a sphere of influence of a city or special district that provides public facilities or services related to sewers, municipal and industrial water, or structural fire protection, the present and probable need for those public facilities and services of any disadvantaged unincorporated communities within the existing sphere. a) There are no proposed changes to the City’s SOI at this time. The existing SOI is reaffirmed as shown in Figure 1 – City Boundary and Sphere of Influence. b) Water and wastewater services are currently being provided by the City of Shasta Lake. Fire and emergency response services are provided by the Shasta Lake FPD. Shasta LAFCO 37 Commission Approved – December 2023