On the agenda: Placer County meeting — Data Center (Jun 11)

1. Summary Action
Documents:
6-11-26 SUMMARY ACTION.PDF
2. PCAPCD Board Meeting Agenda
Documents:
6-11-26 AGENDA.PDF
3. Board Packet
Documents:
6-11-26 APCD BOARD PACKET (E-COPY).PDF
4. FY2026-2027 Proposed Budget
Documents:
3 - ENCLOSURE - FY 2026-27 PROPOSED BUDGET.PDF
4.I. PCAPCD 2025 Audited Financial Statements And SA Report
Documents:
02 - ENCLOSURE - PLACER COUNTY APCD 2025 AUDITED FINANCIAL
STATEMENTS AND SA REPORT-FINAL.PDF
5. Resolution 26-07 Advance Budget Spending Authorization
Documents:
RESO 26-07 ADV. BUDGET SPENDING AUTH SIGNED.PDF

SUMMARY ACTION
PCAPCD Board of Directors Meeting
Thursday, June 11, 2026, at 2:30 PM
Placer County Board of Supervisors' Chambers
175 Fulweiler Avenue, Auburn, California
_________________________________________________________________________________
Call to Order: 2:30 p.m.
Flag Salute
Roll Call / Determination of a Quorum
Present: Richard Pearl, Kim Douglass, Greg Janda, Anthony Demattei, David Ring,
Karen Alvord and Suzanne Jones
Absent:
Shanti Landon, Rachel Radell-Harris and Caroline McCully
Approval of Minutes: April 9, 2026
Public Comment / Meeting’s Public Participation Procedures: No public comment.
Consent: Items 1 – 2
1. Advance Budget Spending Authorization
Adopted Resolution #26-07, thereby authorizing continuation of payroll, operations, professional
services, and maintenance of District assets, as outlined in the Proposed Budget for Fiscal Year (FY)
2026-27. Consideration of this authorization request is in advance of the Final
FY 2026-27 District Budget that is scheduled to be presented for adoption on August 13, 2026.
2. Wildfire Smoke and District Outreach
Received and filed a report on the District’s outreach and engagement regarding wildfire smoke
preparedness and smoke impacts in Placer County.
Public Hearing/No Action: Item 3
3. Proposed Budget Fiscal Year 2026-27 Public Hearing
Conducted a Public Hearing for the purpose of reviewing the District’s FY 2026-27 Proposed
Budget in accordance with the Health and Safety Code §40131(3)(A) that states: “The district
shall notice and hold a public hearing for the exclusive purpose of reviewing its budget and of
providing the public with the opportunity to comment upon the proposed district budget.” District
management also seeks guidance from the Board regarding any changes to this Proposed Budget
for FY 2026-27 for inclusion in the Final Budget, which will be presented to the District Board for
adoption on August 13, 2026.
No action on the Proposed Budget was required.
Action: Item 4
4. New Policy Regarding the Permitting of Diesel-Fired Emergency Generator Engines at
New Data Centers
Approved the “Policy - Air Pollution Emissions Requirements for Diesel-Fired Emergency
Generator Engines at New Data Centers”, requiring the use of Tier 4 Final certified diesel-fired
emergency generator engines at new Data Centers.

Summary Action: PCAPCD Board Meeting
June 11, 2026
Page 2 of 2
Information: Item 5
5. Fiscal Audit Report for the Two Years Ended June 30, 2025
No action was requested. This was an information item on the statutorily required audit of the
District biennial audit of the financial report for FY Ending June 30, 2025.
Air Pollution Control Officer Report
General APCO Updates
A. Incentive Updates:
i. Clean Air Grants
ii. Farmer
iii. Hex Chrome Funding Program
iv. RCD Pilot Agriculture Chipping Program
v. Woodstove
vi. Driving Clean Assistance Program
vii. Air Filtration in Schools
viii. Residential Air Cleaner Distribution to Low Income Households in the Lake
Tahoe Air Basin
B. Conference/Advocacy Update
i. Districts were well represented at 2026 Cap to Cap event.
ii. Other key topics: Federal funding and federal EPA deregulatory impacts
iii. Continued conversations around State budget and electricity reliability around
Data Centers
C. Fiscal Update
i. District remains on budget
Meeting Adjournment: 4:31 p.m.
Next regularly scheduled Board Meeting: August 13, 2026

AGENDA

PCAPCD Board of Directors Meeting
Thursday, June 11, 2026, at 2:30 PM
Board of Supervisors Chambers
175 Fulweiler Avenue, Auburn, CA 95603

_________________________________________________________________________________________________________________________

Call to Order
Flag Salute
Roll Call / Determination of a Quorum
Approval of Minutes: April 9, 2026
Public Comment / Meeting’s Public Participation Procedures
Any person who wishes to address the Placer County Air Pollution Control District (District) Board of
Directors (Board) regarding any item not on the agenda, but within the jurisdiction of this Board, may do so
during the public comment period. However, the Board is not permitted to take action or engage in discussion
on topics which are not on the agenda. All items on the agenda will be open for public comments before final
action is taken. The Board requests public commenters state your name and association for the record before
you speak. There is a 3-minute time limit per speaker. The Chair has the discretion to limit the total discussion
time on any item.

Consent: Items 1 – 2
These items are expected to be routine and non-controversial. The Board will act upon these items at
one time without discussion. Any Board member, Staff member, or interested citizen may request
that an item be removed from the consent calendar for discussion.
1. Advance Budget Spending Authorization
Consider Adoption of Resolution #26-07, thereby authorizing continuation of payroll, operations,
professional services, and maintenance of District assets, as outlined in the Proposed Budget for
Fiscal Year (FY) 2026-27. Consideration of this authorization request is in advance of the Final
FY 2026-27 District Budget that is scheduled to be presented for adoption on August 13, 2026.
2. Wildfire Smoke and District Outreach
Consideration to receive and file a report on the District’s outreach and engagement regarding
wildfire smoke preparedness and smoke impacts in Placer County.
Public Hearing/No Action: Item 3
3. Proposed Budget Fiscal Year 2026-27 Public Hearing
Conduct a Public Hearing for the purpose of reviewing the District’s FY 2026-27 Proposed Budget
in accordance with the Health and Safety Code §40131(3)(A) that states: “The district shall notice
and hold a public hearing for the exclusive purpose of reviewing its budget and of providing the
public with the opportunity to comment upon the proposed district budget.” District management
also seeks guidance from the Board regarding any changes to this Proposed Budget for
FY 2026-27 for inclusion in the Final Budget, which will be presented to the District Board for
adoption on August 13, 2026. No action on the Proposed Budget is required.

Agenda: PCAPCD Board Meeting
June 11, 2026
Page 2 of 2
Action: Item 4
4. New Policy Regarding the Permitting of Diesel-Fired Emergency Generator Engines at
New Data Centers
Consider approval of the “Policy - Air Pollution Emissions Requirements for Diesel-Fired
Emergency Generator Engines at New Data Centers”, requiring the use of Tier 4 Final certified
diesel-fired emergency generator engines at new Data Centers.
Information: Item 5
5. Fiscal Audit Report for the Two Years Ended June 30, 2025
No action requested. This is an information item on the statutorily required audit of the District
biennial audit of the financial report for FY Ending June 30, 2025.
Air Pollution Control Officer Report
A. General APCO Updates
B. Incentive Program Update
C. Advocacy and Conference Updates
D. Fiscal update – financial report to be provided at meeting
Meeting Adjournment
Next regularly scheduled Board Meeting: August 13, 2026
Placer County Air Pollution Control District is committed to ensuring that persons with disabilities are
provided the resources to participate fully in its public meetings. If you require disability-related
modifications or accommodations, please contact the Clerk of the Board. All requests must be in writing
and must be received by the Clerk five business days prior to the scheduled meeting for which you are
requesting accommodation. Requests received after such time will be accommodated only if time permits.
Materials related to this meeting which are provided to Board members are available for public inspection
at the meeting and during business hours at the Air Pollution Control District office at 110 Maple Street,
Auburn, CA 95603. District Office Telephone: (530) 745-2330.

AGENDA

PCAPCD Board of Directors Meeting
Thursday, June 11, 2026, at 2:30 PM
Board of Supervisors Chambers
175 Fulweiler Avenue, Auburn, CA 95603

_________________________________________________________________________________________________________________________

Call to Order
Flag Salute
Roll Call / Determination of a Quorum
Approval of Minutes: April 9, 2026
Public Comment / Meeting’s Public Participation Procedures
Any person who wishes to address the Placer County Air Pollution Control District (District) Board of
Directors (Board) regarding any item not on the agenda, but within the jurisdiction of this Board, may do so
during the public comment period. However, the Board is not permitted to take action or engage in discussion
on topics which are not on the agenda. All items on the agenda will be open for public comments before final
action is taken. The Board requests public commenters state your name and association for the record before
you speak. There is a 3-minute time limit per speaker. The Chair has the discretion to limit the total discussion
time on any item.

Consent: Items 1 – 2
These items are expected to be routine and non-controversial. The Board will act upon these items at
one time without discussion. Any Board member, Staff member, or interested citizen may request
that an item be removed from the consent calendar for discussion.
1. Advance Budget Spending Authorization
Consider Adoption of Resolution #26-07, thereby authorizing continuation of payroll, operations,
professional services, and maintenance of District assets, as outlined in the Proposed Budget for
Fiscal Year (FY) 2026-27. Consideration of this authorization request is in advance of the Final
FY 2026-27 District Budget that is scheduled to be presented for adoption on August 13, 2026.
2. Wildfire Smoke and District Outreach
Consideration to receive and file a report on the District’s outreach and engagement regarding
wildfire smoke preparedness and smoke impacts in Placer County.
Public Hearing/No Action: Item 3
3. Proposed Budget Fiscal Year 2026-27 Public Hearing
Conduct a Public Hearing for the purpose of reviewing the District’s FY 2026-27 Proposed Budget
in accordance with the Health and Safety Code §40131(3)(A) that states: “The district shall notice
and hold a public hearing for the exclusive purpose of reviewing its budget and of providing the
public with the opportunity to comment upon the proposed district budget.” District management
also seeks guidance from the Board regarding any changes to this Proposed Budget for
FY 2026-27 for inclusion in the Final Budget, which will be presented to the District Board for
adoption on August 13, 2026. No action on the Proposed Budget is required.

Agenda: PCAPCD Board Meeting
June 11, 2026
Page 2 of 2
Action: Item 4
4. New Policy Regarding the Permitting of Diesel-Fired Emergency Generator Engines at
New Data Centers
Consider approval of the “Policy - Air Pollution Emissions Requirements for Diesel-Fired
Emergency Generator Engines at New Data Centers”, requiring the use of Tier 4 Final certified
diesel-fired emergency generator engines at new Data Centers.
Information: Item 5
5. Fiscal Audit Report for the Two Years Ended June 30, 2025
No action requested. This is an information item on the statutorily required audit of the District
biennial audit of the financial report for FY Ending June 30, 2025.
Air Pollution Control Officer Report
A. General APCO Updates
B. Incentive Program Update
C. Advocacy and Conference Updates
D. Fiscal update – financial report to be provided at meeting
Meeting Adjournment
Next regularly scheduled Board Meeting: August 13, 2026
Placer County Air Pollution Control District is committed to ensuring that persons with disabilities are
provided the resources to participate fully in its public meetings. If you require disability-related
modifications or accommodations, please contact the Clerk of the Board. All requests must be in writing
and must be received by the Clerk five business days prior to the scheduled meeting for which you are
requesting accommodation. Requests received after such time will be accommodated only if time permits.
Materials related to this meeting which are provided to Board members are available for public inspection
at the meeting and during business hours at the Air Pollution Control District office at 110 Maple Street,
Auburn, CA 95603. District Office Telephone: (530) 745-2330.

MINUTES

PCAPCD Board of Directors Meeting
Thursday, April 9, 2026, at 2:30 PM
Board of Supervisors Chambers
175 Fulweiler Avenue, Auburn, CA 95603
_____________________________________________________________________________
Present:
Absent:

Shanti Landon, Greg Janda, Caroline McCully, Anthony Demattei, David Ring,
Rachel Radell-Harris, Karen Alvord (arrived after minutes vote), Suzanne Jones,
Richard Pearl

Approval of Minutes: February 12, 2026
Motion: Suzanne Jones / Caroline McCully
Action: Approved 2/12/26 Minutes / Unanimous Vote 7:0
Ayes:
Landon/McCully/Demattei/Radell-Harris/Ring/Janda/Jones
Public Comment / Meeting’s Public Participation Procedures: No public comment.
Information: Item 1
1. Overview of the Regional Spare the Air Program
No action requested. This was an informational item to provide a summary of the Regional
Spare the Air Program for the 2025 ozone season and an overview for the upcoming 2026
campaign.
2. Action: Item 2
Granite Bay Residential Burning
Approved proposal directing the Air Pollution Control Officer to align the provisions for
residential burning in Granite Bay with the rest of unincorporated Western Placer County by
allowing residential burning on any declared burn with no restrictions on burn hours. Also
approved directing staff to explore opportunities for enhanced outreach to communities
regarding residential burning, as well as opportunities to expand options to residents for noncombustion alternatives to burning.
Motion: Suzanne Jones/ Anthony Demattei
Action: Approved Item 2 / Unanimous Vote 8:0
Ayes:
Jones/Landon/McCully/Janda/Demattei/Radell-Harris/Alvord/Ring
Information: Item 3
3. Incentive Programs Update
No action was required. This was an informational item to provide an update on current
incentive programs managed by the District in Fiscal Year (FY) 2025-26.

MINUTES: PCAPCD Board Meeting
April 9, 2026
Page 2 of 2
Air Pollution Control Officer Report
A. General APCO Updates
B. Fiscal update
Meeting Adjournment: 4:13 p.m.
Next regularly scheduled Board Meeting: June 11, 2026
Minutes prepared by:

Gina Ledesma-Reyes, Clerk of the Board
Minutes approved by Board of Directors:
Attest: ______________________________

June 11, 2026

Board Agenda Item 1
Consent
Agenda Date:

June 11, 2026

Prepared By:

Kristen Monroe, Administrative & Fiscal Officer II

Topic:

Advance Budget Spending Authorization

Action Requested: Adopt Resolution #26-07 (Attachment #1), thereby authorizing continuation of
payroll, operations, professional services, and maintenance of District assets, as outlined in the
Proposed Budget for Fiscal Year (FY) 2026-27. This authorization request is in advance of the
Final FY 2026-27 District Budget that is scheduled to be presented for adoption on
August 13, 2026.
Discussion: The early authorization is requested for the continuation of payroll, operations, professional
services, and maintenance of District assets as outlined in the Proposed Budget for Fiscal Year (FY)
2026-27, for expenditures required after the end of the current fiscal year on
June 30, 2026, but prior to the scheduled Final Budget hearing date of August 13, 2026.
Fiscal Impact: Funding for the requested spending authorization is included within the Proposed
FY 2026-27 Budget that will be discussed in a public hearing on June 11, 2026. Sufficient funds
are identified in the Proposed FY 2026-27 Budget to cover the expenditures. If advance spending
authorization is granted, the Final FY 2026-27 Budget scheduled to be heard for adoption on
August 13, 2026, which will include the necessary funds to cover these expenditures.
Recommendation: Staff recommends adoption of Resolution #26-07, thereby authorizing the
continuation of payroll, operations, professional services and maintenance of District assets, effective
July 1, 2026.
Attachment #1: Resolution #26-07

ATTACHMENT # 1
SUBJECT:

Resolution #26-07

Board Resolution:
Resolution # 26-07

Before the Placer County
Air Pollution Control District Board of Directors
In the Matter Of:

Authorization of the expenditure of funds in advance of the FY 2026-27 Final
Budget approval, effective July 1, 2026, for the continuation of payroll,
operations, professional services, and maintenance of District assets.

The following RESOLUTION was duly passed by the Placer County Air Pollution Control
District Board of Directors (District Board) at a regular meeting held on June 11, 2026, by the
following vote:
Ayes:

Jones ______ Alvord ______ Pearl ______

Radell-Harris ______ Janda ______

DeMattei ______ Landon ______ McCully ______

Noes:

Alternates: __________________ ______

__________________ ______

Jones ______ Alvord ______ Pearl ______

Radell-Harris ______ Janda ______

DeMattei ______ Landon ______ McCully ______

Abstain:

Ring ______

Ring ______

Alternates: __________________ ______

__________________ ______

Jones ______ Alvord ______ Pearl ______

Radell-Harris ______ Janda ______

DeMattei ______ Landon ______ McCully ______
Alternates: __________________ ______

Ring ______

__________________ ______

Signed and approved by me after its passage:
____________________________________ Chairperson

____________________________________ Attest: Clerk of said Board

1

Resolution #26-07

WHEREAS, on June 11, 2026, the District Board held a Public Hearing for the exclusive purpose
of reviewing its budget and providing the public with an opportunity to comment upon the
proposed District budget, as required by Health and Safety Code Section 40131 (a)(3); and
WHEREAS, the District will make available to the public at least 30 days prior to the
August 13, 2026, public hearing, a summary of the final budget, as required by Health and Safety
Code Section 40131(a)(1); and
WHEREAS, the District has provided public notice to persons subject to District fees in the
preceding year, at least 30 days in advance of the scheduled public hearing on August 13, 2026,
as required by Health and Safety Code Section 40131(a)(2); and
WHEREAS, the District has a need for a continuation of payroll, operations, professional services,
and maintenance of District assets, after the end of the current fiscal year on June 30, 2026, and
before the Final Fiscal Year (FY) 2026-27 Budget will be considered for adoption on
August 13, 2026; and
WHEREAS, funds for payroll, operations, professional services and maintenance of District assets
are identified in the Proposed Budget for FY 2026-27, in advance of the Final Budget hearing.
NOW THEREFORE BE IT RESOLVED that the District Board hereby authorizes the
expenditure of funds in advance of the Final FY 2026-27 Budget adoption, effective
July 1, 2026, in accordance with the Proposed Budget for Fiscal Year 2026-27, for the continuation
of payroll, operations, professional services and maintenance of District assets.

2

Resolution #26-07

Board Agenda Item 2
Consent
Agenda Date:

June 11, 2026

Prepared By:

Heather Selvester, Air Quality Specialist

Topic:

Wildfire Smoke and District Outreach

Action Requested: Receive and file a report on the District’s outreach and engagement regarding
wildfire smoke preparedness and smoke impacts in Placer County.
Background: California wildfires have caused significant property and infrastructure damage,
high firefighting costs, and damage to natural resources. Some past wildfires that have caused
smoke impacts to Placer County include the American River Complex (2008), American
(2013), King (2014), Camp (2018), August Complex (2020), Caldor (2021), and Mosquito
(2022) wildfires.
Wildfire smoke negatively impacts our air quality and is hazardous to human health, with
pregnant women, the elderly, and children being particularly sensitive. It contains a mixture
of fine particulate matter (PM2.5), volatile organics, nitrogen oxides, and air toxics.
In 2025, Placer County was fortunate and did not experience significant wildfire smoke
impacts. CAL FIRE reported 8,232 wildfires burned 507,817 acres statewide in 2025. The
Gifford wildfire, located in Santa Barbara County, was the largest wildfire in California last
year and burned over 131,612 acres. Placer County’s largest wildfire in 2025 was the Catlett
fire, which was quickly contained at 175 acres.
Historically, June through October was considered wildfire season in California; however,
wildfire season is changing. In January 2025, the Palisades and Eaton wildfires in Southern
California dramatically highlighted the risk to the wildland urban interface and the expanding
duration of the wildfire season with potential air quality impacts from smoke to the public.
Discussion: PM2.5 in wildfire smoke is a significant public health threat. These very small
particles (and air toxics they contain) easily penetrate the human respiratory system.
Monitoring
To evaluate the real-time PM2.5 impacts from wildfire smoke, the District operates and
maintains four permanent monitoring stations located in Lincoln, Auburn, Colfax, and Tahoe
City. The California Air Resources Board (CARB) operates an additional permanent
monitoring station located in Roseville.
During smoke events, the District may strategically deploy temporary monitors to locations
without a permanent PM2.5 monitor. The existing network of low-cost Purple Air sensors is

PCAPCD Board Agenda Item 2
June 11, 2026
Page 2 of 2
also used to identify air quality impacts from wildfire smoke. The data provided by the
permanent and temporary monitors and low-cost sensors is used by the District to respond to
wildfire smoke events and provide additional focused outreach to Placer County constituents.
Response and Outreach
The District’s wildfire response and outreach program includes:
•

•

•
•
•

Interagency Collaboration -- Ensuring air quality monitoring data is provided to United
States Environmental Protection Agency (U.S. EPA)’s Fire and Smoke Map. This website
provides current air quality information and illustrates when smoke events impact
residents. When a wildfire occurs in Placer County, District staff collaborate with partner
agencies to ensure constituents get the best information available.
Partnerships -- Collaboration with the Placer County Public Health and Human Services
Department (HHS), Placer County Office of Emergency Services (OES), Placer County
Public Information Office (PIO), Placer County Office of Education (PCOE), local fire
agencies, and CARB.
Advisories -- Issuance of joint public health air quality advisory notices when smoke can
cause or is forecasted to cause unhealthy air quality, with wide distribution to news outlets.
District staff may also participate in media interviews.
Community engagement -- Participation in a wide range of community events, including
local town halls and Municipal Advisory Committees to provide current air quality
information with regards to smoke.
Integrated webpage information -- The District maintains a smoke information webpage
that provides residents information and specific strategies for reducing smoke impacts.

For the coming wildfire season, the District participated in the Placer County Library’s
Wildfire Awareness Month by providing smoke outreach materials and attending the Wildfire
Preparedness Workshops they hosted. Additionally, the District will provide an article for the
Placer County Water Agency’s 2026 Fire and Water publication, which is expected to be
distributed to 30,000 Placer County households. The District will continue enhancing smoke
information on our webpage, and work with County departments to provide useful tools for
up-to-date air quality information to residents.
Fiscal Impact: The District’s permanent ambient air quality monitoring program is a core
program, and necessary staff and equipment resources are allocated in the District’s budget. There
are no plans to increase staff resources beyond those currently allocated in the budget. However,
there is no dedicated funding or revenue source to support the District’s efforts during wildfire
events. If a federal emergency declaration is made due to wildfire, reimbursement for staff time
outside of regular business hours may be available. During prolonged periods of unhealthy air due
to wildfires, it may be necessary to divert staff resources to monitoring and public outreach, which
would delay other work performed by District staff.
Recommendation: Receive and file a report on the District’s outreach and engagement regarding
wildfire smoke preparedness and smoke impacts in Placer County.

Board Agenda Item 3
Public Hearing / No Action
Agenda Date:

June 11, 2026

Prepared By:

Kristen Moore, Administrative & Fiscal Officer II

Topic:

Proposed Budget Fiscal Year 2026-27 Public Hearing

Action Requested: Conduct a Public Hearing for the purpose of reviewing the District’s Fiscal
Year (FY) 2026-27 Proposed Budget in accordance with the Health and Safety Code
§40131(3)(A) that states: “The district shall notice and hold a public hearing for the exclusive
purpose of reviewing its budget and of providing the public with the opportunity to comment
upon the proposed district budget.” District management also seeks guidance from the Board
regarding any changes to this Proposed Budget for FY 2026-27 for inclusion in the Final
Budget, which will be presented to the District Board for adoption on August 13, 2026. No
action on the Proposed Budget is required.
Discussion: The Proposed Budget for FY 2026-27 maintains operations and program
administration while ensuring financial stability and flexibility despite economic uncertainties.
With a well-funded reserve, balanced expenditures, and continued support for critical
programs, the budget allows the District to effectively manage costs while enhancing public
outreach, environmental initiatives, and essential services. Through this budget, District staff
will focus on managing current and new clean air grant contracts, as well as continue to monitor
and plan air quality efforts, regulate open burning, increase outreach and public engagement,
and permit stationary sources in accordance with applicable laws. Overall, anticipated
operating expenses remain steady, with District management maintaining a conservative
approach to revenue projections and expenditure planning. This ensures sufficient funding for
operational needs while preserving contingency funds for unforeseen circumstances,
reinforcing the District’s commitment to long-term financial sustainability.
Included in the enclosed Budget are the District’s FY 2026-27 goals for each District Section.
These District goals are linked to the District’s Mission Statement. Also included is the
organization chart and budget overview.
Previous years’ budgets included fixed increases to the District’s fee schedule, as approved in
Resolution 18-04. This approved schedule of fee increases was fully implemented in the
FY 2022-23 budget. As a result, the fee structure for FY 2026-27 includes an increase directly
tied to the Consumer Price Index, as provided for in District Rule 601.
Future FY Budgets: As part of the development of the Preliminary Budget for FY 2026-27,
District Staff has assessed the potential financial impacts of the current economic climate on
future budgets. This evaluation includes possible fluctuations in State and Federal funding for
operational needs and clean air incentive programs, as well as anticipated changes in permit
and enforcement revenues. Despite these uncertainties, staff remain confident that the District
will uphold fiscal prudence while continuing to meet its statutory and regulatory obligations
effectively.

PCAPCD Board Agenda Item 3
June 11, 2026
Page 2 of 2
Should it be necessary, District Staff are prepared to quickly respond to changing budget
environments. Potential responses include identifying options for salary savings, cutting
operational expenses, delaying planned investments (such as Building Fund repayments) and
utilizing reserve funds.
In the upcoming fiscal year District Management will be evaluating the existing fee structure
and cost recovery practices. This review will focus on assessing the actual cost of providing
key services, examining current recovery levels within statutory limits, available subsidies, and
determining whether adjustments may be warranted to support equitable and sustainable
funding. Upon completion of the review, management may return to the Board with a
recommendation to engage a comprehensive fee study to ensure continued alignment with the
District’s strategic and financial priorities.
Fiscal Impact: The District provides a balanced Preliminary Budget for FY 2026-27:
The total Preliminary Proposed Budget for FY 2026-27 is $19,840,896 (FD32400
$19,394,743 and FD32404 $446,153), a 41% decrease from the previous fiscal year. The
decrease is directly related to a correction in how advance state funding is now recognized
as unearned revenue until eligible costs are incurred, rather than when the revenue is
received, to be compliant with GASB 33.
Revenue is estimated in the amount of $11,590,114 and Fund Balance is estimated in the
amount of $8,250,782, for total revenue in the amount of $19,840,896.
Appropriations are budgeted in the amount of $18,204,521 for operating expenses and projects,
and an estimated ending Fund Balance of $1,636,375 represented as Appropriations for
Contingency, for a total of $19,840,896.
The Preliminary Budget for FY 2026-27 is structurally balanced and supplies the costs for
operations, maintains services and program delivery, and provides for selected critical resource
needs.
Additional details of fund balances, revenues, and appropriations can be found in the enclosed
budget package.

Recommendation: It is recommended that the District Board provide direction to District Staff
regarding any changes to this Proposed Budget for FY 2026-27 for inclusion into the Final
Budget. The Final Budget will be presented to the Board for its approval and adoption at the
regular Board Meeting scheduled for August 13, 2026.
Enclosure: Proposed Budget FY 2026-27

Board Agenda Item 4
Action
Agenda Date:

June 11, 2026

Prepared By:

Murat Onder, Air Pollution Control Engineer

Topic:

Consideration of a New Policy Regarding the Permitting of Diesel-Fired
Emergency Generator Engines at New Data Centers

Action Requested: Approval of the “Policy -- Permitting of Diesel-Fired Emergency Generator
Engines at New Data Centers” (Attachment #1), requiring the use of Tier 4 Final certified
diesel-fired emergency generator engines at new Data Centers.
Background: The siting of new “Data Centers” (DCs) -- buildings housing and powering large
computer systems -- is increasing state- and nationwide to meet the demand of Artificial
Intelligence workloads (e.g., Feiger 2026). DC computers utilize electricity for operations
and cooling. DC electricity requirements vary widely (Han et al. 2024). Smaller DCs
(serving individual companies or close to end-users) may only require 0.5-10 megawatts
(MW) of electricity, while large (hyperscale) recent DCs (cloud and AI) can require a range of
anywhere from 100 to 1,000 MW of electricity.
DCs typically use on-site emergency (back-up) generators (BUGs) to ensure reliable and
uninterrupted power. Typically, reliability for DCs is designed for over 99.99% uptime.
Currently, diesel-fired BUGs (D-BUGs) are the most cost-effective alternative to provide onsite emergency electricity generation. The large number of D-BUGs needed to provide
adequate power at DCs could significantly increase public health risk from diesel engine
exhaust and prompt the need for best available control measures. Diesel engine exhaust
includes diesel particulate matter (DPM) and acrolein, harmful carcinogens causing cancer
and cardiovascular disease; as well as oxides of nitrogen (NOx), a primary contributor to
formation of ground level ozone (IARC, 2014).
Discussion: To issue a permit for D-BUGs, the District conducts a “New Source Review”
according to District Rule 502, New Source Review. This includes an evaluation of the use of
“Best Available Control Technology” (BACT) and air toxics risk to the local neighboring
community.
Currently the District considers BACT for D-BUGs as the use of “Tier 3” certified engines (or
better). Lower emitting “Tier 4 Final” (Tier 4F) engines are now widely available in most
engine sizes and applications. Table 1 compares air pollutant emissions from Tier 3 and Tier
4F engines. Tier 4F engines have significantly lower NOx (∼85%) and DPM (∼95%)
emissions due to the add-on use of Selective Catalytic Reduction and DPM filters,
respectively. Additionally, Tier 4F engines have lower acrolein emissions due to better fuel
efficiency and more complete combustion.

PCAPCD Board Agenda Item 4
June 11, 2026
Page 2 of 3
The District does not currently require BACT for all applications of D-BUGs as Tier 4F
because:
•

•
•

Tier 4F emission reduction cost effectiveness ($/ton reduced) is high for smaller DBUGs (more typical in non-DC applications). The cost of a smaller Tier 4F engine
can be 50% higher than a similar-sized Tier 3 engine (PGA 2026, Turnkey Industries
2026).
Emissions reductions are small due to limited allowable (permitted) hours of use for
testing and maintenance, and typically very low emergency usage due to the excellent
reliability of the local electricity grid.
Most Districts do not require Tier 4F engines as BACT for all D-BUGs. Only a few
Districts have made such a determination, including the Sacramento Air Quality
Management District and the San Joaquin Valley Air Pollution Control District.

However, for D-BUGs at all new DCs, the District is proposing to require the use of Tier 4F
engines. This is because:
•
•
•

•
•

Because of the high reliability requirements at DCs, it is expected that D-BUGs at DCs
will run for significantly greater lengths of time relative to D-BUGs in non-DC
applications/locations.
For the typically larger-sized DC D-BUGs, the cost difference between Tier 4F and
Tier 3 is only around 20% (PGA 2026, Turnkey Industries 2026).
The potential for new DCs with many large D-BUGs near communities with sensitive
receptors. The requirement for Tier 4F engines ensures proactively mitigating air
pollution impacts on neighboring communities. Air pollution from DC D-BUG testing
and maintenance operations alone can be significant (EPRI 2024).
Tier 4F D-BUGs would be required to meet DPM and acrolein air toxics risk
thresholds for applications where DCs are sited near sensitive receptors, particularly if
D-BUGs are needed to operate during extended emergency periods.
Requiring Tier 4F engines will provide a significant (85%) reduction in D-BUG NOx
emissions. Limiting NOx emission impacts from D-BUG operations is critical for the
District to attain and maintain Federal Ambient Air Quality Standards for ground level
ozone.

Fiscal Impact: The proposed policy is not expected to have any impact on District resources.
However, for facilities that are seeking a permit for a new DC, the proposed policy may, in
some limited cases – i.e., for smaller engines (e.g., < 300 kilowatt combined) and where the
distance to nearby receptors is great -- require a Tier 4F engine whereas otherwise a Tier 3
might have been accepted under current permitting procedures. However, the number of these
situations is expected to be low, as new DCs are not expected to have small generators and/or
be located in non-populated areas.
Recommendation: District staff recommends approval of the “Policy -- Permitting of DieselFired Emergency Generator Engines at New Data Centers” requiring the use of Tier 4F
certified diesel-fired emergency generator engines at new Data Centers.
Attachment #1: Policy -- Permitting of Diesel-Fired Emergency Generator Engines at New Data
Centers

PCAPCD Board Agenda Item 4
June 11, 2026
Page 3 of 3
References:
EPRI, Powering intelligence: Analyzing artificial intelligence and data center energy
consumption, Product ID 3002028905, 2024.
Feiger E, “It Snuck up on a Lot of Communities’: Data Center Expansion is Forcing Residents to
Find New Power Providers,” The Cool Down, May 11, 2026.
Han Y, Z WU, P LI, A Wierman, S Ren. “The Unpaid Toll: Quantifying and Addressing the
Public Health Impact of Data Centers,” Working Paper arXiv:2412.06288, Dec. 9, 2024.
IARC, “Diesel and Gasoline Engine Exhausts and Some Nitroarenes”, IARC Monographs on the
Evaluation of Carcinogenic Risks to Humans Volume 105, 2014.
PGA (Power Generation Enterprises), EPA Tier 3 v Tier 4 Final: Generator Emissions Guide,
https://powergenenterprises.com/tier-3-vs-tier-4-diesel-generator-emissions, January 27,
2026
Turnkey Industries, “Is Your Generator Tier 3 or Tier 4 – and Does Your State Require It?,”
https://turnkey-industries.com/generator-tips/tier-3-vs-tier-4-diesel-generators-staterequirements, May 2026.
Table 1. Comparison of air pollutant emission standards for Tier 3 and Tier 4 Final off-road
diesel engines.
Engine Size
NOx

PM10

37 ≤ kW < 56
56 ≤ kW < 75
75 ≤ kW < 130
130 ≤ kW < 225
225 ≤ kW < 450
450 ≤ kW < 560
560 < kW
37 ≤ kW < 56
56 ≤ kW < 75
75 ≤ kW < 130
130 ≤ kW < 225
225 ≤ kW < 450
450 ≤ kW < 560
560 < kW

Tier 3
g/kW-hr
4.46
4.46
3.82
3.82
3.82
3.82
3.57
-0.40
0.30
0.20
0.20
0.20
0.12

Tier 4F
g/kW-hr
4.46
0.40
0.40
0.40
0.40
0.40
0.67
0.03
0.01
0.01
0.01
0.01
0.01
0.03

ATTACHMENT #1
SUBJECT:
Policy – Permitting of Diesel-Fired Emergency Generator Engines at New Data Centers

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT POLICY 5H
AIR POLLUTION EMISSIONS REQUIREMENTS FOR DIESEL-FIRED EMERGENCY GENERATOR
ENGINES AT NEW DATA CENTERS

Background/Purpose:
The siting of new “Data Centers” -- buildings housing and powering large computer systems -- is
increasing state- and nationwide to meet the demand of Artificial Intelligence workloads. Data
Center computers require significant electricity for operations and cooling, requiring as much as
100 to 1,000 MW per Data Center. Data Centers typically use on-site emergency (back-up)
generators to ensure reliable and uninterrupted power. Diesel-fired engine generators are the most
cost-effective alternative to provide on-site emergency electricity generation. Diesel engine
exhaust contains toxics constituents including Diesel Particulate Matter and Acrolein, which cause
cancer and cardiovascular disease, as well as NOx, a primary contributor to the formation of
ground level ozone. To ensure the protection of community health and to achieve regional air
quality goals, diesel engines for emergency generators at new Data Centers are required to be Tier
4 Final certified.
Applicability:
This policy applies to the review and approval of Authority to Construct applications for dieselfired engines for emergency generators used at new Data Centers. It requires Tier 4 Final certified
diesel engines for emergency generators used at new Data Centers. It applies to engines of all
rated sizes. A Data Center is a “facility housing information technology infrastructure (networked
computers, servers, and data storage drives) for storing, processing, and delivering digital
information to power everything from cloud computing, mobile, apps, AI, and streaming services.”
Any engines not utilized for Data Center operations, including on-site computing and cooling, but
still under the same facility (at the same site), are exempt from this Policy, granted they satisfy at
least Tier 3 Engine Standards and AB 2588 Air Toxics Analysis.
Policy Statement:
It is the policy of the Placer County Air Pollution Control District to require the use of Tier 4 Final
certified diesel-fired engines used for emergency generators at new Data Centers, at the discretion
of the APCO.
Prepared By: Murat Onder. Air Pollution Control Engineer
Board Adoption Date: June 11, 2026
Attest:

Clerk of the Board

PCAPCD POLICY 5H
PAGE 1 OF 1

DIESEL-FIRED EMERGENCY GENERATOR ENGINES AT NEW DATA CENTERS
JUNE 11, 2026

Board Agenda Item 5
Information
Agenda Date: June 11, 2026
Prepared By: Kristen Monroe, Administrative & Fiscal Officer - II
Topic: Fiscal Audit Report for the Two Years Ended June 30, 2025 (Information Only)
Action Requested: No action requested. This is an information item on the statutorily required
Placer County Air Pollution Control District (District) biennial audit of the financial report for
Fiscal Year Ending June 30, 2025. The letter from the Independent Auditors to the District
Board of Directors (Directors) is attached hereto as Attachment #1, and the Independent
Auditor’s Report is provided with this packet as an Enclosure.
Discussion: The District completed its biennial financial audit for the two-year period ending
June 30, 2025, in accordance with Government Code Section 26909. Since 1996, the District
has operated under an approved biennial audit cycle, with results presented to the Board every
two years (Resolution 96-26).
This audit cycle also included the District’s first Federal Single Audit, triggered by the level
of federal expenditure during the period. As part of this expanded scope, the auditors reviewed
the District’s Schedule of Expenditures of Federal Awards (SEFA) and evaluated internal
controls and compliance related to federal program requirements.
The audit was completed and the final report issued on March 25, 2026, meeting the federal
requirement that Single Audit reports be filed with the Federal Audit Clearinghouse no later
than March 31 following the end of the audit period.
The biennial financial audit and the Single Audit were conducted by LSL, LLP under the
County’s audit services agreement, with all associated costs charged to the District.
Auditors’ results:
1. Financial Statements
a.
b.
c.
d.

Type of auditors’ report: Unmodified
Material weakness identified: Yes (described below)
Significant deficiencies identified: None Reported
Noncompliance material to financial statements noted: No

2. Federal Awards
a.
b.
c.
d.

Type of auditors’ report issued on compliance for major federal programs:
Unmodified
Material weaknesses identified: No
Significant deficiencies identified: None Reported
Audit findings disclosed that are required to be reported in accordance with
2 CFR 200.516(a): No

PCAPCD Board Agenda Item 5
June 11, 2026
Page 2 of 2
The financial statement audit report identified one material weakness in internal control
(Item 2025-001) related to how the District recorded certain advance State grant revenues in a
prior audit period. In earlier years, these grants were recognized as revenue when the funds
were received, rather than when all eligibility requirements were met. During the audit, staff
reviewed this issue and determined that the earlier treatment did not meet required accounting
standards, resulting in a $1.1 million restatement to the prior period ending June 30, 2023. Staff
agreed with the finding, had corrected the issue for the current audit period before closing FY
2025, and had already implemented procedures to ensure that grant revenue is recognized only
after all eligibility requirements are fully met, consistent with GASB Statement No. 33.
The Independent Auditor’s letter identified one uncorrected misstatement in the financial
statements. The item was evaluated and determined to be immaterial. The variance resulted
from the annual year end accrual for DMV surcharge revenue, which must be estimated
because the District receives these funds on a two-month lag. For the June 2025 accrual,
revenue was estimated according to historical trends and was understated by $24,246 compared
to the actual amount received in August after the fiscal year end close. Auditor Controller staff
reviewed the variance, concurred that it was immaterial, and determined that a prior period
adjustment was not necessary.
There were no findings or questioned costs of federal awards required to be reported in
accordance with 2 CFR 200.516(a).
It is the opinion of the independent auditors that: “…the financial statements referred to above
present fairly, in all material respects, the respective financial position of the governmental
activities and the general fund of the District as of June 30, 2025, and the respective changes
in financial position, for the two years then ended in accordance with accounting principles
generally accepted in the United States of America.
Fiscal Impact: The fee for this audit was budgeted in the FY 2025-26 budget.
Recommendation: No action is necessary.
Attachment #1: Placer County APCD Auditor Communication Letter 2025-FINAL
Enclosure: Placer County APCD 2025 Audited Financial Statements and SA Report-FINAL

ATTACHMENT #1
SUBJECT:

Placer County APCD Auditor Communication Letter 2025-FINAL

March 25, 2026
The Board of Directors
Placer County Air Pollution Control District
Auburn, California
We have audited the financial statements of the governmental activities and the general fund of the Placer
County Air Pollution Control District (the District) for the two years ended June 30, 2025. Professional
standards require that we provide you with information about our responsibilities under generally accepted
auditing standards, Government Auditing Standards, and the Uniform Guidance, as well as certain
information related to the planned scope and timing of our audit. We have communicated such information
in our letter to you dated May 5, 2025. Professional standards also require that we communicate to you the
following information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the District are described in Note 2 to the financial statements. As described in
Note 2 to the financial statements, the District changed accounting policies related to compensated
absences by adopting Statement Governmental Accounting Standards (GASB Statement) No. 101,
Compensated Absences, in fiscal year 2024. Accordingly, the cumulative effect of the accounting change
as of the beginning of the year is reported in the Statement of Activities. We noted no transactions entered
into by the District during the year for which there is a lack of authoritative guidance or consensus. All
significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management’s knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ significantly
from those expected. The most sensitive estimates affecting the District’s financial statements were:
Management’s estimates of the net pension liability and net other post-employment benefits
asset are based on actuarial valuations. We evaluated the methods, assumptions, and data
used to develop the net pension liability and net other post-employment benefits asset in
determining that they are reasonable in relation to the financial statements taken as a
whole.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.

LSLCPAS.COM

To the Board of Directors
Placer County Air Pollution Control District
Auburn, California
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. The restatement of net position and fund balance detected and corrected by management,
is described in detail in our separately issued Independent Auditors’ Report on Internal Control over
Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards dated March 25, 2026. The attached
schedule summarizes uncorrected misstatements of the financial statements. Management has determined
that their effects are immaterial, both individually and in the aggregate, to the financial statements taken as
a whole. The uncorrected misstatements or the matters underlying them could potentially cause future
period financial statements to be materially misstated, even though, in our judgment, such uncorrected
misstatements are immaterial to the financial statements under audit.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing
matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or
the auditors’ report. We are pleased to report that no such disagreements arose during the course of our
audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated March 25, 2026.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application
of an accounting principle to the District’s financial statements or a determination of the type of auditor’s
opinion that may be expressed on those statements, our professional standards require the consulting
accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge,
there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the District’s auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
Other Matters
We applied certain limited procedures to management’s discussion and analysis, the budgetary comparison
schedules for the General Fund, and the required pension and other post-employment benefits schedules,
which are required supplementary information (RSI) that supplements the basic financial statements. Our
procedures consisted of inquiries of management regarding the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We did
not audit the RSI and do not express an opinion or provide any assurance on the RSI.

To the Board of Directors
Placer County Air Pollution Control District
Auburn, California
We were engaged to report on the schedule of expenditures of federal awards (supplementary information)
which accompany the financial statements but are not RSI. With respect to this supplementary information,
we made certain inquiries of management and evaluated the form, content, and methods of preparing the
information to determine that the information complies with accounting principles generally accepted in the
United States of America, the method of preparing it has not changed from the prior period, and the
information is appropriate and complete in relation to our audit of the financial statements. We compared
and reconciled the supplementary information to the underlying accounting records used to prepare the
financial statements or to the financial statements themselves.
Future GASB Pronouncements and Projects
The following Government Accounting Standards Board (GASB) pronouncements will be effective for the
two years ended June 30, 2027’s audit and should be reviewed for proper implementation by management:
GASB Statement No. 103, Financial Reporting Model Improvements.
GASB Statement No. 104, Disclosure of Certain Capital Assets.
GASB Statement No. 105, Subsequent Events.
The following are GASB projects that are ongoing and will be implemented as applicable in future fiscal
years.
Comprehensive Project, Revenue and Expense Recognition.
Major Project, Going Concern Uncertainties and Severe Financial Stress.
Major Project, Infrastructure Assets.
Restriction on Use
This information is intended solely for the information and use of the Board of Directors and management
of the District and is not intended to be, and should not be, used by anyone other than these specified
parties.
Very truly yours,

Sacramento, California

To the Board of Directors
Placer County Air Pollution Control District
Auburn, California

SUMMARY OF AUDIT DIFFERENCES
General Fund
Year Ended June 30, 2025

Unadjusted audit differences:
The District estimated May and June 2025 DMV revenues based on
historical activity. Estimate was $24,246 less than actual was received.
Cumulative effect (before effect of prior year differences)
Cumulative effect (after effect of prior year differences)

Current Year over (under)
Revenues and
Expenditures/Expenses
and Changes in
Fund Balance/Equity
$ (24,246)
$ (24,246)

Proposed
Budget
Fiscal Year
2026-27

PLACER COUNTY AIR POLLUTION CONTROL
DISTRICT
PROPOSED BUDGET FY 2026-27
Erik C. White
Air Pollution Control Officer

Table of Contents
Page(s)
District Overview
Directors and Staff ...................................................................................................... 1
Organization Chart ...................................................................................................... 2
District Mission Statement ..................................................................................... 3 - 4
Section Goals and Objectives .............................................................................. 5 - 19
Planning & Monitoring Section
Grants & Incentives Section
Permitting & Engineering Section
Compliance & Enforcement Section
Administrative Services Section
Budget Overview ................................................................................................... 20 - 26
FY 2026-27 Air Pollution Control District Fund FD32400 Budget Summary ......... 27
FY 2026-27 FARMER Fund FD32404 Budget Summary .......................................... 28
FY 2026-27 Revenue Source and Expense Use Pie Charts………………………….29

110 Maple Street, Auburn, CA 95603 ∙ (530) 745-2330 ∙ Fax (530) 745-2373 ∙ www.placerair.org
Erik C. White, Air Pollution Control Officer

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT

GOVERNING BOARD OF DIRECTORS:
Shanti Landon
Anthony De Mattei
Suzanne Jones
Rachel Radell-Harris - Chair
Caroline McCully – Vice Chair
Richard Pearl
David Ring
Greg Janda
Karen Alvord

Placer County Supervisor – District II
Placer County Supervisor - District III
Placer County Supervisor – District IV
City of Auburn Councilmember
City of Colfax Mayor
City of Lincoln Mayor
Town of Loomis Councilmember
City of Rocklin Councilmember
City of Roseville Councilmember

DISTRICT STAFF:

POSITION

SECTION

Erik White
Adam Baughman
Kristen Monroe
Stacey Francis
Russell Moore
Shannon Harroun
Gina Ledesma-Reyes
Daniel Hayes
Bruce Springsteen
Vacant
Heather Selvester
Arthur Soma
Vacant
Zach Lee
Phillip Montoya
Murat Onder
Yu-Shuo Chang
Vacant
Emily Moore
David Buck
Vacant
Molly Johnson
Lauren Moore
Vacant

Air Pollution Control Officer
Deputy Air Pollution Control Officer
Administrative & Fiscal Officer
Accounting Technician
Information Technology Technician II
Staff Services Analyst II
Administrative Technician & Board Clerk
Accountant I
Principal Air Pollution Control Engineer
Air Quality Specialist – Senior
Air Quality Specialist II
Air Quality Specialist I
Air Pollution Control Engineer - Senior
Administrative Technician
Air Pollution Control Engineer – Associate
Air Pollution Control Engineer - Assistant
Supervising Planner
Planner - Senior
Planner - Assistant
Air Quality Specialist II
Air Quality Specialist – Senior
Air Quality Specialist II
Air Quality Specialist II
Air Quality Specialist I/II

Director, Air Pollution Control District
Deputy Director, Air Pollution Control District
Administrative Services Manager & Fiscal Officer
Administrative Services
Administrative Services
Administrative Services
Administrative Services
Administrative Services
Permitting Division Manager
Compliance & Enforcement
Compliance & Enforcement
Compliance & Enforcement
Permitting & Engineering
Permitting & Engineering
Permitting & Engineering
Permitting & Engineering
Planning Division Manager
Planning & Monitoring
Planning & Monitoring
Planning & Monitoring
Grants & Incentives
Grants & Incentives
Grants & Incentives
Grants & Incentives

Air Quality Specialist I
Planner – Associate
Student Intern

Compliance & Enforcement
Planning & Monitoring
Permitting & Engineering

EXTRA HELP:
Tim Murphy
Ann Hobbs
Vacant

1

Placer County Air Pollution Control District
Organization Chart

BOARD OF DIRECTORS

Director of Air Pollution
P
Po
Control
Air Pollution Control Officer
Erik White
Legal
g Counsel
Co
County
County Counsel
Counsel and
and
Contracted Legal Services

Deputy
p y Air
Air Pollution
P ll i
Control Officer
Adam Baughman

Admin Division Manager

Planning Division Manager

Permitting Division Manager

Kristen Moore
Administrative & Fiscal Officer II

Yu-Shuo
Chang
Vacant
Supervising
Planner
(NEW)
Supervising
Planner

BruceVacant
Springsteen
Principal
APCAPC
Engineer
(NEW)
Principal
Engineer

Planning & Monitoring
Section

Grants & Incentives
Section

Permitting & Enginnering
Section

Compliance & Enforcement
Section

Contracts/Grants Analyst

Planning Supervisor
Supervisor
Planning

Grants Supervisor

Permitting
Supervisor
Permitting
g Supervisor
p

Compliance Supervisor

Shannon Harroun
Staff Services Analyst I

Vacant
Yu-shuo
Senior Senior
Planner
Chang

Vacant
Senior Senior
Air Quality
(NEW)
APCSpecialist
Specialist

BruceVacant
Springsteen
Senior APC Engineer

Vacant
(NEW) Senior APC

Administrative Services
Section

Clerk
Cl k off the
th Board**
Board**
rd
d**
Administrative Services
Gina Ledesma-Reyes
Ledesma-Reyes
LedesmaAdministrative Technician

CAP / EPA TAG / Wood
Stove Grants

Land Use Planning / Airr
Quality Planning /
Emission Inventory

Molly Johnson
AQ Specialist
APC
A
SpecialistII

Emily Moore
Assistant Planner

Accounting Support

Lauren Moore
AQ Specialist
APC
A
SpecialistIIII

David Buck
AQ
APCSpecialist
SpecialistII

Accounting / Payroll /
Payables
Stacey Francis
Accounting Technician

Moyer / FARMER /
Chrome Plating Grants

Air Monitoring &
Building
Superintendent

Daniel Hayes
Accountant I

Permit Engineer

Stationary Source
Inspections

Phillip Montoya
Assistant
Assistant APC
APC Engineer
Engineer

+HDWKHU6HOYHVWHU
$46SHFLDOLVW,,

er
Permit Enginee
Engineer

6WDWLRQDU\6RXUFH
,QVSHFWLRQV

Murat Onder
Assistant
Engineer
A
APC Engineer
Engi
neer

$UWKXU6RPD
$46SHFLDOLVW,

Permitting Technician
Technician
Permitting
Land Use / Burn
Program - Extra Help

Grants support

Ann Hobbs
Associate Planner

Vacant
AQ Vacant
Specialist

Database Management
& IT Support

=DFK/HH
$GPLQLVWUDWLYH7HFKQLFLDQ
Engineering Student
Student
Engineering
Intern

Russell Moore
IT Technician II

Grant
Grant
Support
Support
Services

Contract
Services
Contract Services

Vacant
Student Intern

Contract Support
Support
Contract
Services
Spatial Informatics Group

Vacant
Civic
Spark Fellow
Fellow
CivicSpark

Alarm & Fire Monitoring
Alarm
Monitoring

E
H l
Extra-Help
7LP0XUSK\
$46SHFLDOLVW,

Janitorial
Janitorial
Landscaping
Landscaping

MOUs
MOUs

Elevator Maint.
Elevator

Fire Agency Mutual Support
Agreements

Contract IT Services
MootsPoint
TruePoint Solutions

ADMIN

PERMITTING

PLANNING

** The "Clerk of the Board" function reports to the Director
Effective February 2026

2

The Placer County Air Pollution Control District
Whatȱweȱareȱallȱabout…ȱ


ȱ
ȱ
1. Regulateȱairȱpollutantȱemissionsȱfromȱstationaryȱsourcesȱ



Ourȱvisionȱisȱtoȱ
achieveȱandȱmaintainȱ
cleanȱairȱstandardsȱ
throughoutȱPlacerȱ
Countyȱ
ȱ
ȱ
Weȱstriveȱtowardsȱthisȱ
endȱbyȱmanagingȱtheȱ
County’sȱairȱqualityȱinȱ
aȱmannerȱtoȱprotectȱandȱ
promoteȱpublicȱhealthȱ
byȱcontrollingȱandȱ
seekingȱreductionsȱofȱ
airȱpollutantsȱwhileȱ
recognizingȱandȱ
consideringȱtheȱ
economicȱandȱ
environmentalȱimpactsȱ
ȱ
ȱ
Weȱdoȱthisȱbyȱfocusingȱ
onȱnineȱspecificȱgoalsȱ
andȱapplyingȱourȱ
resourcesȱtowardȱ
accomplishingȱtheirȱ
associatedȱobjectivesȱ



a. Evaluateȱ emissions,ȱ potentialȱ emissions,ȱ andȱ establishȱ
permitȱ limitationsȱ consistentȱ withȱ Districtȱ rulesȱ andȱ
regulationsȱandȱapplicableȱairȱpollutionȱcontrolȱlawsȱ
b. Developȱandȱmaintainȱaȱvigilantȱinspectionȱprogramȱtoȱ
ensureȱcomplianceȱofȱpermittedȱtermsȱandȱconditionsȱȱ
c. Provideȱ guidanceȱ onȱ implementationȱ ofȱ rulesȱ andȱ
regulationsȱtoȱregulatedȱsourcesȱ
d. Establishȱpartnershipsȱwithȱindustryȱbyȱprovidingȱbothȱ
aȱ technicalȱ andȱ personalȱ levelȱ ofȱ serviceȱ toȱ promoteȱ
innovativeȱreductionsȱofȱemissionsȱȱ
e. Adoptȱprogressive,ȱsensible,ȱfactȬbased,ȱandȱeffectiveȱairȱ
pollutionȱcontrolȱrulesȱandȱregulationsȱasȱareȱnecessaryȱ
toȱfurtherȱtheȱgoalsȱofȱtheȱDistrictȱandȱtoȱmeetȱstateȱandȱ
federalȱmandatesȱ
ȱ

2. Seekȱ quantitativeȱ reductionsȱ inȱ amountsȱ ofȱ airȱ pollutantsȱ
beingȱreleasedȱwithinȱtheȱCountyȱ
a. Identifyȱandȱregulateȱnewȱsourcesȱofȱemissionsȱȱ
b. Alleviateȱtoxicȱandȱnuisanceȱemissionȱimpactsȱuponȱtheȱ
publicȱ
c. Provideȱeconomicȱincentivesȱforȱemissionȱreductionsȱ
d. Deterȱ emissionȱ violationsȱ throughȱ theȱ enforcementȱ ofȱ
Districtȱrules,ȱandȱairȱpollutionȱcontrolȱlawsȱ
e. Increaseȱresourcesȱappliedȱtoȱmitigationȱmeasuresȱ
f. Provideȱ publicȱ educationȱ aboutȱ sources,ȱ effects,ȱ andȱ
methodsȱofȱreductionȱ
g. Modifyȱand/orȱincorporateȱnewȱrulesȱandȱregulationsȱasȱ
appropriateȱtoȱobtainȱreductionsȱsuitedȱforȱtheȱCountyȱ
h. Seekȱ Greenhouseȱ Gasȱ (GHG)ȱ emissionȱ reductionsȱ inȱ
keepingȱwithȱstateȱandȱfederalȱlawsȱandȱregulations,ȱandȱ
Districtȱpoliciesȱ
ȱ

3. Respondȱ toȱ andȱ investigateȱ nonȬcompliantȱ eventsȱ andȱ
sourcesȱofȱemissionsȱinȱanȱefficientȱmannerȱandȱimpartiallyȱ
upholdȱandȱenforceȱairȱpollutionȱlawsȱandȱregulationsȱ
a. Initiateȱmeasuresȱtoȱallowȱsourcesȱtoȱgainȱcomplianceȱbyȱ
providingȱqualityȱserviceȱwithinȱacceptableȱlimitsȱ
b. Establishȱaȱhierarchicalȱenforcementȱsystemȱthatȱyieldsȱ
appropriateȱ sanctionsȱ forȱ theȱ violationȱ ofȱ permitȱ
conditions,ȱ rules,ȱ regulations,ȱ andȱ laws,ȱ andȱ
considering,ȱamongȱotherȱrelevantȱfactors,ȱtheȱseverity,ȱ
frequency,ȱ andȱ airȱ quantityȱ ofȱ pollutionȱ dischargedȱ toȱ
theȱatmosphereȱ
c. Partnerȱ withȱ otherȱ agenciesȱ whenȱ feasibleȱ toȱ assistȱ inȱ
fieldȱresponseȱandȱinspections/investigationsȱ
3



4. Mitigateȱeffectsȱofȱgrowthȱthroughȱqualityȱplanningȱmeasuresȱ
a. Maintainȱ andȱ enhanceȱ aȱ dataȱ andȱ informationȱ collectionȱ systemȱ regardingȱ emissionȱ
inventoryȱandȱairȱshedȱpropertiesȱthroughoutȱtheȱbasinsȱ
b. Prepareȱandȱupdateȱairȱqualityȱplansȱtoȱeffectivelyȱmaintainȱorȱachieveȱattainmentȱofȱairȱ
qualityȱstandardsȱthroughȱmeasuresȱbestȱsuitedȱforȱtheȱCountyȱ
c. Reviewȱ developmentȱ plansȱ forȱ impactsȱ onȱ airȱ qualityȱ andȱ climate,ȱ andȱ workȱ towardȱ
mitigatingȱthoseȱimpactsȱthroughȱprogramsȱthatȱreduceȱemissionsȱ
d. Developȱandȱimplementȱinitiatives,ȱandȱsupportȱlocalȱjurisdictions,ȱtoȱaddressȱtheȱgrowthȱ
ofȱtheȱCountyȱwithȱrespectȱtoȱmaintainingȱandȱimprovingȱairȱqualityȱ
ȱ

5. Poolȱresourcesȱwithȱotherȱagencies,ȱdistricts,ȱjurisdictions,ȱandȱstakeholdersȱ
a. Partnerȱ withȱ localȱ municipalitiesȱ inȱ areasȱ ofȱ mutualȱ interestȱ andȱ whereȱ mandatesȱ crossȱ
jurisdictionalȱboundariesȱ
b. Formȱ strategicȱ alliancesȱ withȱ otherȱ airȱ districts,ȱ academia,ȱ stakeholdersȱ andȱ agenciesȱ asȱ
appropriateȱtoȱdevelopȱtechnicalȱresourcesȱandȱgainȱneededȱassistanceȱ
c. Contractȱ outȱ forȱ services/programȱ managementȱ toȱ areasȱ whereȱ theȱ cost/benefitȱ ofȱ doingȱ
suchȱisȱfavorableȱ
ȱ

6. Marketȱ andȱ promoteȱ theȱ positiveȱ impactsȱ theȱ Districtȱ isȱ makingȱ onȱ theȱ airȱ qualityȱ inȱ theȱ
Countyȱ



7. Developȱ andȱ supportȱ innovativeȱ andȱ nonȬtraditionalȱ emissionȱ reductionȱ strategiesȱ andȱ
initiativesȱforȱallȱsourcesȱofȱemissionsȱ
a. Supportȱ zeroȱ emissionȱ andȱ alternativeȱ andȱ renewableȱ fuelsȱ technologies,ȱ andȱ
accompanyingȱinfrastructure,ȱincludingȱwasteȱtoȱenergyȱandȱbiomassȱtoȱenergyȱinitiatives,ȱ
asȱwellȱasȱcleanerȱburningȱfossilȱfuels.ȱ
b. LeverageȱDistrictȱandȱlocalȱfundingȱwithȱStateȱandȱFederalȱmoniesȱtoȱmaximizeȱbenefitsȱtoȱ
localȱjurisdictions.ȱ
c. SupportȱeconomicallyȱselfȬsustainingȱforestȱmanagementȱinitiativesȱtoȱrestoreȱourȱforestsȱ
toȱaȱfireȬresilientȱconditionȱwhileȱreducingȱemissionsȱfromȱprescribedȱburningȱandȱwildfiresȱ
–ȱ includingȱ hazardousȱ fuelȱ reductionȱ thinningȱ andȱ useȱ ofȱ biomassȱ wasteȱ forȱ energy,ȱ
biochar,ȱandȱwoodȱproductsȱasȱanȱalternateȱtoȱopenȱpileȱburningȱȱ
d. Assistȱinȱtheȱimplementation/fundingȱofȱTransportationȱControlȱMeasuresȱ(TCMs)ȱcalledȱ
forȱinȱAirȱQualityȱPlansȱ
ȱ

8. ImproveȱDistrictȱbusinessȱprocessesȱandȱinternalȱoperationsȱsoȱasȱtoȱprovideȱcostȱeffectiveȱandȱ
qualityȱserviceȱtoȱtheȱcitizensȱandȱindustryȱofȱPlacerȱCounty.ȱȱ
a. Continuallyȱ assessȱ theȱ abilityȱ ofȱ staff,ȱ funding,ȱ andȱ contractȱ resources,ȱ toȱ meetȱ Districtȱ
serviceȱ levelȱ priorities,ȱ satisfactionȱ ofȱ mandates,ȱ andȱ achievementȱ ofȱ missionȱ objectives,ȱ
andȱmakeȱnecessaryȱadjustments.ȱ
b. Identifyȱmeansȱtoȱstreamlineȱandȱenhanceȱbusinessȱprocessesȱtoȱachieveȱgainsȱinȱefficiencyȱ
andȱ effectiveness,ȱ reduceȱ costsȱ andȱ alignȱ costsȱ withȱ revenueȱ streams,ȱ andȱ improveȱ
customerȱserviceȱandȱpublicȱtransparency.ȱ
ȱ

9. Provideȱaȱfinanciallyȱstable,ȱsafe,ȱandȱpositiveȱworkingȱenvironmentȱforȱDistrictȱstaff,ȱwhereȱ
staffȱareȱhealthyȱandȱmotivated,ȱwellȱpreparedȱandȱqualified,ȱrespectedȱbyȱtheirȱpeers,ȱwithȱ
highȱethicalȱandȱworkȱstandards,ȱandȱwhereȱstaffȱareȱencouragedȱtoȱutilizeȱtheirȱfullȱpotential.ȱ



KWdzd,/^dZ/dKZ&ZhZzϵ͕ϮϬϭϳ



4

Placer County Air Pollution Control District
Fiscal Year 2026-27 Section Goals
Mission
Goal/Objective

Planning & Monitoring Section:
The Planning & Monitoring Section is responsible for air quality planning
required to guide local emission reduction efforts and to demonstrate that these
efforts satisfy state and federal planning requirements. The Section also
conducts assessments of land use projects with respect to their impact on air
quality. Air quality planning efforts, and the determination of whether state and
local emission control measures have been successful, are verified by the air
monitors that measure ambient air quality in the District. The Section is also
responsible for preparing inventories of emissions in the District, regulating
open burning and burning from wood-fired appliances, and managing the Clean
Air Grant and other incentive programs. Specific activities of the Section
include:
 Working with federal, state, and other local agencies to develop regional
planning documents to attain and maintain compliance with state and federal
ambient air quality standards.
 Ensuring compliance with federal conformity requirements.
 Developing emission inventories for air quality planning purposes and new
or amended rules and regulations for District adoption.












Assisting in the development of land use plans, such as specific and general
plans.
Reviewing land use projects and environmental documents submitted by
lead agencies, in compliance with the California Environmental Quality Act
(CEQA).
Preparing environmental documents when the District is the lead agency.
Inspecting new development projects to verify mitigation measures were
implemented.
Administering grant funding from the federal, state, and local programs
including Section 103 PM2.5 Network Operation Program, AB 197
Emission Inventory, Community Air Protection Program, and District’s
Land Use Offsite Mitigation Program.
Providing public outreach and information.
Coordinate with the other air districts in Sacramento Region for the Spare
the Air Program
Operating air quality monitoring equipment at five (5) stations including one
to acquire data for short-term research purposes.
Submitting air monitoring data to the State and Federal governments.
Analyzing air monitoring data to identify poor air quality episodes and
recommend health alerts when warranted, to identify violations of air quality
standards, and to evaluate trends for decision making with regard to air
quality plans.

5

4(b), 4(d), 5a),
5(b)
7(b)
1(e), 2(a), 2(b),
2(g), 4(a), 4(b),
4(c)
4(c), 5(a), 7(b)
4(c), 5(a), 7(b)
2(a), 2(g), 4(c)
1(b), 4(c), 4(d)
1(d), 2(c), 2(e),
4(c), 4(d), 5(a),

1(c), 2(f), 6
2(f), 6
4(a), 4(b), 4(d)
4(a), 4(b), 4(d)
4(a), 4(b), 4(d)

Placer County Air Pollution Control District
Fiscal Year 2026-27 Section Goals




Support the District burn program to minimize smoke impacts, including
residential burning, rice burning, and forest management prescribed
burning–through smoke management plan approval, permitting, burn project
authorization, and burn day declarations.
Collaborating with various emergency response agencies to deliver effective
air quality data for the public and decision makers when an incident such as
wildfire occurs and impacts the air quality within Placer County.

Section tasks and projects to be advanced in the 2026-2027 fiscal year are:
Air Quality Plans for Federal Standards: Staff continues working with
United States Environmental Protection Agency (U.S. EPA) and California
Air Resources Board (CARB) and other local air districts in the Sacramento
Federal Nonattainment Area (SFNA) to: 1) accomplish the necessary
redesignation request and maintenance plan for the 1979 federal 1-hour
ozone standard, as well as 1997 and 2008 8-hour ozone standard, 2) develop
the State Implementation Plan Revision for the 2015 8-hour ozone standard
due to the federal actions on California mobile source strategies, and 3) work
with CARB and U.S. EPA to finalize the area designation determination for
the 2024 federal PM2.5 annual average standard.
 AB197 Emission Inventory District Grant Program: CARB continues
providing the District grant funding in FY 2026-27 to conduct a quality
assurance review of data being uploaded into the California Emission
Inventory Development and Reporting System (CEIDARS) database. The
grant requires the District to review, update, and submit quality assured
criteria and toxic pollutant emissions data meeting the statewide Criteria and
Toxic Emission Reporting Regulation (CTR) requirements for calendar year
2025. The timeline to implement the project and submit a final report to
CARB is at the end of May 2027.
 CEQA Review Program: Staff proposed to update the District’s CEQA
Review Policy and Handbook in FY 2026-27. The purpose for the CEQA
Review Policy update is to address how the off-site mitigation fee is
determined during the project planning period if the land use developer
chooses to apply off-site mitigation measures to offset the project’s related
potential emissions. The CEQA Handbook update is to address recent
legislation and courts’ decisions regarding the CEQA cases, available
modeling tools for emission determination, and the list of feasible mitigation
measures. The purpose for these updates is to continue providing a useful
resources for local jurisdictions as well as project’s developers and
consultants to determine the land use project’s related air quality impacts.
 Land Use Mitigation Funds: Staff continue working with local jurisdictions
and public agencies to explore the feasible projects that can generate
emission reductions to offset the potential air quality impacts from new land
use developments in Placer County.


6

1(a), 1(b), 2(f),
5(b)

1(a), 1(c), 2(f),
4(a), 6

1(a), 1(e), 2(f),
2(g), 4(a), 4(b),
4(d), 5(b)

1(e), 2(a), 2(b),
2(g), 4(a), 4(b),
4(c)

1(b), 2(a), 2(g),
4(c), 4(d), 5(a),
7(b)

4(c), 4(d), 7(b)

Placer County Air Pollution Control District
Fiscal Year 2026-27 Section Goals






Community Air Protection Program Implementation Grant: AB 617
established a Community Air Protection Program (CAPP) requiring local air
districts, in conjunction with CARB and local communities, to identify
communities which may be significantly impacted by local sources of criteria
pollutants and toxic emissions. The Legislature appropriates funds, though
the State annual budget cycle, to local air districts for CAPP implementation.
The funds can be used to cover local air districts’ activities with specific
tasks, including identifying locations for monitoring, deploying community
air monitoring systems or fence-line monitoring, reporting facility
emissions, developing a community emission reduction program,
establishing requirements and adopting schedules for best available retrofit
control technology (BART) implementation, and conducting local
community meetings or public outreach. The District is allocated to receive
the amount of $93,285 to cover the tasks for CAPP implementation in FY
2026-27.
Air Monitoring Network Operation: Staff continues upgrading the District’s
air monitoring network in FY 2026-27. The proposed upgrade includes the
installation of smart AC units and surveillance cameras to enhance the site
environmental control and security. The District applied and received federal
air monitoring funding in January 2025. The is a five-year grant award and
the funding is used to upgrade instruments for air monitoring and enhance
station security. The instrument has been purchased and installed for on-site
ozone analyzer calibration in FY 2025-26. These network upgrades will
enhance the District’s ability to ensure data collection, data handling
procedures, data quality assurance/quality control and station security and
safety.
Spare the Air Program: Staff continue working with Prosio
Communications, the Spare the Air (STA) contractor, to promote the Spare
the Air program in Placer County. It includes the coordination of public
events participation, promotional items preparation and educational
materials development, local partnership development, and program’s
mascot “Scooter” schedules for community event participation.

7

1(c), 1(e), 2(a),
2(b), 2(f), 2(g),
4(a), 4(b), 4(c),
6

4(a), 4(b), 4(d)

2(f), 6

Placer County Air Pollution Control District
Fiscal Year 2026-27 Section Goals
Section:
Grants & Incentives Section:
The Grants and Incentives Section is responsible for managing a range of grant
and incentive programs that support businesses, organizations, public agencies,
and Placer County residents in reducing air pollutant emissions. These programs
are funded through a combination of federal, state, and local sources and include
both locally focused as well as statewide programs administered on behalf of the
other air districts. The funding is administered in accordance with the related
guidance to ensure the funding is appropriately spent. Specific activities of the
Section include:
 Administering the District’s Clean Air Grant (CAG) program to reduce
criteria pollutant emissions. The CAG funding sources consist of the federal,
state, and local programs to fund projects reducing reactive organic gases
(ROG), nitrogen oxides (NOx), and particulate matter (PM) from heavyduty diesel mobile sources while encouraging the use of alternative fuel
technologies and supporting infrastructure.
 Administering the statewide incentive programs on behalf of CARB and
other air districts to facilitate the program participation and streamline the
administrative process for CARB and participated air districts.
 Coordinating the incentive programs administered by the other air districts
or regional agencies to benefit the residents, businesses, organizations, and
public agencies in Placer County.
 Exploring possible grant funding opportunities from the state and federal
agencies for Placer County residents and business.

2(c), 2(f), 5(a),
5(c), 6, 7(a),
7(b), 8(b)



2(f), 6,

Conducting the public outreach program to promote the grant and incentive
programs that are eligible for the Placer residents, public agencies, and
businesses.

Mission
Goal/Objective

5(a), 7(a), 7(b),
8(b)
2(c), 2(f), 5(a),
7(a), 7(b)
2(c), 2(f), 5(a),
7(a), 7(b)

Section tasks and projects to be advanced in the 2026-2027 fiscal year are:
Clean Air Grant Program: Staff continue administering the District’s Clean
Air Grant (CAG) program in FY 2026-27. The CAG program is the District’s
primary annual grant program funded by the federal, state, and local
agencies. The available funding sources for FY 2026-27 include U.S. EPA
Targeted Airshed Grant (TAG) and CARB’s Carl Moyer Program (Moyer
Program), Community Air Protection Incentive Program (CAP Incentive),
Climate Heat Impact Response Program (CHIRP), as well as DMV
surcharge (AB923). Each incentive program has its own specific
requirement requirements for eligible project categories and costeffectiveness limitation to meet the goals of funding sources.
 Woodstove Changeout Incentive Program: Staff continues managing the
woodstove changeout program in FY 2026-27. The major funding sources
are from U.S. EPA TAG funding and CARB’s Woodsmoke Reduction
Program. The TAG funding is limited to offer the incentives to the heat pump


8

2(c), 2(f), 5(a),
5(c), 6, 7(a),
7(b), 8(b)

2(c), 2(f), 5(a),
5(c), 6, 7(a),
7(b), 8(b)

Placer County Air Pollution Control District
Fiscal Year 2026-27 Section Goals
application in Sacramento Valley Air Basin (SVAB) portions of the District
and the CARB’s funding is applied to offer incentives countywide. The
standard incentive is $2,500 for a woodstove replacement and $5,000 for an
electric heat pump replacement. The enhanced incentive for low-income
eligible applicants is $5,000 for a woodstove replacement and $10,000 for
an electric heat pump replacement.
 Community Based Supplemental Environmental Project Program: Staff
continue working on the Community Based Supplemental Environmental
Project (CBSEP) program in FY 2026-27. The program is established to
periodically receive Supplemental Environmental Project (SEP) funds from
CARB’s settlement of enforcement actions. The funds are used to provide
installation and maintenance of high-performance air filtration systems in
schools located in Placer’s local communities near major transportation
corridors, including rail. Fifteen (15) schools in Placer County have been
installed with the air filtration system through the program. Staff will work
on at least one additional school to use the remaining funds of approximately
$200,000
 Commercial Lawn and Garden Equipment Electrification Program: Staff
continue coordinating with the Yolo-Solano Air Quality Management
District (YSAQMD) to promote the commercial lawn and garden equipment
electrification program. YSAQMD administers this replacement program on
behalf of the District to provide vouchers to eligible public agencies, school
districts, and parks and recreation districts that conduct commercial-scale
landscaping work in Placer County to reduce the cost of replacing existing
gas or diesel-powered lawn and garden equipment with battery-operated
zero-emission lawn and garden equipment. Staff anticipates expending the
rest of funding for Placer County applications in FY 2026-27.




Driving Clean Assistance Program: Staff works to promote the Driving
Clean Assistance Program (DCAP) to Placer residents. In early 2025, the
Community Housing Development Corporation (CHDC) announced its
DCAP expanded to Placer County. This innovative program helps lowincome Californians purchase or lease reliable clean air vehicles and join
the fight against climate change. The program provides funding and an
array of financial support services including counseling, assistance in
accessing low-interest loans and grants, financial education, budget
planning, and personalized case management. DCAP continues accepting
applications in FY 2026-27.
Funding Agricultural Replacement Measures for Emission Reduction
Program: the Funding Agricultural Replacement Measures for Emission
Reductions (FARMER) Program is a statewide incentive program that
reduces criteria pollutant emissions from the agricultural sector. The
District serves as the administrator, on behalf of CARB, to work with the
air districts within the Shared Allocation Pool (SAP) to solicit and review
project applications, recommend projects for funding, transfer funds to
participating districts, and coordinate required reporting. According to FY

9

2(c), 2(f), 5(a),
5(c), 6, 7(a),
7(b), 8(b)

2(c), 2(f), 5(a),
5(c), 6, 7(a),
7(b), 8(b)

2(c), 2(f), 6,
7(a), 7(b), 8(b)

5(a), 7(a), 7(b),
8(b)

Placer County Air Pollution Control District
Fiscal Year 2026-27 Section Goals





24-25 state budget, the SAP receives a tentative allocation of only $83,800,
including $69,554 for projects and $14,246 for administration. However,
the FARMER Guidelines were updated in 2024, which would require
substantial updates to the District’s policies and procedures, contracts with
SAP districts, and application materials before launching a new solicitation.
Given the limited amount of funding and complied with the requirements
from the revised guideline in 2024, the District has opted out of
administering the FY 24–25 SAP allocation. District staff will continue
administering projects from prior funding years and may resume
administering the SAP if more substantial funding becomes available.
Hexavalent Chromium Funding Program: In June 2023, the state legislature
appropriated $10 million in FY 23-24 funding to CARB with a liquidation
deadline of June 30, 2028, to reduce emissions from chrome plating
operations by transitioning away from the use of hexavalent chromium. The
District serves as the funding administer on behalf of CARB to collaborate
with participating air districts to solicit and review applications, evaluate
projects applications for funding, award and contract funds directly to grant
recipients, and complete required reporting to CARB. The District
developed program policies and procedures and officially launched the Hex
Chrome Funding Program on September 10, 2025. Staff continue working
with the participated air districts to implement this statewide incentive
program.
Incentive Program Advertising and Outreach: Statt continue maintaining a
website that provides the latest information on all available incentive
programs to Placer residents, public agencies, and businesses who seek for
grant opportunities to fund their emission reduction projects. In addition,
staff uses advertisements in local newspapers, distributes press releases to
local media outlets, participates in local community events such as Earth
day events, County Fairs, and Colfax Railroad Days to promote grants and
incentive programs. These outreach efforts will continue to be used in FY
2026-27.

10

5(a), 7(a), 7(b),
8(b)

2(f), 6,

Placer County Air Pollution Control District
Fiscal Year 2026-27 Section Goals
& Engineering Section:
Permitting & Engineering Section:

Mission
Goal/Objective

The Permitting & Engineering Section has the primary responsibility of
permitting stationary sources of emissions, in accordance with applicable state
and federal laws and District regulations. Specific responsibilities of the Section
include:
 Evaluation of new Authority to Construct applications, annually reviewing
Permits to Operate prior to renewal and invoicing, and Permit to Operate
renewal.
 Supporting the Hearing Board’s consideration of Variances and Abatement
Orders.
 Administering the Emission Reduction Credit (ERC) banking program by
issuing ERCs and tracking them in a Registry.
 Evaluating air toxic emissions from existing facilities through
implementation of the AB 2588 Air Toxics Hot Spots program, and
evaluation of air toxic emissions from new and modified facilities.
 Preparation and review of annual throughput information requests sent to
stationary sources, which gather information used to calculate emissions and
determine compliance with permit limits.
 Conducting comparison of state and federal control measure guidelines to
District rules and emission sources to demonstrate compliance or identify
rule deficiencies that will need to be corrected through new rules or rule
amendments and assisting in new or amended rule development.
 Assisting in regulation compliance education and response to business
inquiries and public information requests about sources.
 Identifying business operations that should be permitted by the District
through a permitting outreach effort, in conjunction with Compliance and
Enforcement Section staff.

1(a), 1(c), 1(d)
2(a), 2(d), 3(a),
3(b)
1(a), 2(c)
2(a), 2(b)
1(a), 4(a)
1(a), 1(e), 2(g)

1(c), 2(f), 3(a)
1(a), 1(b), 1(c),
2(d), 2(f), 3(a),
3(b)

Section tasks and projects to be advanced in the 2026-2027 fiscal year are:
 Database Development: Accela database development work will continue 1(c), 4(a), 8(b)
on the: (1) criteria and air toxics emission calculation and inventory module,
and (2) Citizen Access Portal throughput and authority to construct permit
application public user interfaces.
1(a), 1(c), 1(d),
 Title V Permit Renewal: Federal “Title V” permits are issued by the District
for five facilities – four “Major Sources” of air pollution Roseville Energy 2(d), 2(g)
Park, Gladding McBean, Sierra Pacific Industries – Lincoln, and Rio Bravo
Rocklin), and the Western Regional Sanitary Landfill. Title V permits are
issued for a five year period. In FY 2026-2027, the Title V permit for Rio
Bravo Rocklin will be renewed. The Title V permit for Gladding McBean
might be cancelled in 2026 due to acceptance of permit limits that reduce
emissions below major source thresholds.

11

Placer County Air Pollution Control District
Fiscal Year 2026-27 Section Goals
























Air Toxics Risk: Refined air toxic risk assessments will continue for existing
coating operations (including autobody refinishing shops and wood, metal,
and plastic coaters) and back up diesel engine generators). Particular
consideration
will
be
given
to
coatings
which
contain
parachlorobenzotrifluoride (PCBTF). Participation will continue in the
CAPCOA air toxic subgroup to monitor and implement anticipated CARB
developments on the toxics of acrolein, iso-cyanates, and ethylene oxide.
Criteria and Toxics Emissions Reporting (CTR): The Accela database will
be used for automated reporting.

1(a), 1(c), 2(a),
2(b)

Emission Reduction Credits (ERC): Opportunities to create ERCs, through
either existing permitted facility closures or use of enhanced controls not
required by regulations, will continue to be evaluated.
Data Center Permitting: In anticipation of new data centers, permitting
requirements for diesel internal combustion engine and novel linear
generators will be tracked and developed.
U.S. EPA Rules: The District will continue to implement Federal U.S. EPA
Maximum Achievable Control Technology and New Source Performance
requirements for permitted sources and apply New Source Review “emission
projection” and “common control” permitting considerations.

1(a), 2(c), 7

California Environmental Quality Act (CEQA) for Permitting: CEQA
review requirements for permitting new or modified stationary sources will
continue.
Inspections and Source Testing: Inspection of newly permitted sources and
review and approval of source test plans, source test observations, and source
test reports, will be conducted.
Agricultural Engine Registration Program: The compliance status of the
County’s agricultural community’s diesel engines registered in the District
Agricultural Engine Registration Program will be reviewed.
Best Available Control Technology (BACT): Federal, state and local air
district BACT determinations will be tracked, particularly those for
emergency backup diesel generators, gas dispensing vapor recovery, landfill
gas control, and compost management systems.
Landfill Gas Control: The requirements of the recently revised CARB
Landfill Gas Methane Rule will be implemented.
Public Safety Power Shutoff (PSPS) Events: Permitting guidelines and
policies will be developed to provide flexibility to operators of portable
emergency generator engines while ensuring the engines do not adversely
impact local air quality.
Permitting of Forest Biomass Waste Management Technologies: Continue
permitting innovative technologies that help manage forest biomass waste
generated from forest fuels reduction projects. This includes air curtain
incinerators, mobile biomass pyrolysis units, small boilers for community
heat and power, and “burn-bots”.

1(a), 1(c), 2(f)

12

1(a), 1(c), 2(a),
3(a)

1(a), 1(c), 2(f)

1(a), 2(a), 2(b),
2(g)

1(b)

1(a), 1(c), 1(c)

1(a), 2(a), 2(b),
2(g)
1(a), 2(a), 2(b),
2(g)
1(a), 1(c), 2(a),
2(b), 5(a)

1(a), 1(c), 2(a),
5(b), 7(c)

Placer County Air Pollution Control District
Fiscal Year 2026-27 Section Goals


Staffing: Currently staffed full-time positions will be maintained.
Engineering Intern may be added depending on resource needs.

13

An

8(a), 9

Placer County Air Pollution Control District
Fiscal Year 2026-27 Section Goals
Compliance and Enforcement Section:
The Compliance and Enforcement Section is responsible for ensuring
compliance with permit conditions, District rules and regulations, and
applicable state and federal air pollution laws. This is achieved through
investigations and on-site inspections, and pursuing enforcement actions when
violations are found. Specific responsibilities of the Section include:
 Inspecting permitted and unpermitted stationary sources of air pollution
(i.e., facilities) for compliance with applicable rules and regulations. This
includes portable engines and equipment that are registered with the state.
 Investigating and resolving air pollution complaints from the public
regarding odors, smoke, dust, or air pollutant emissions from any source.








Reviewing monitoring data and reports, and observing source tests, for
compliance with applicable rules and regulations.
Issuing Notices of Violation or Corrective Action Notices when violations
are discovered.
Resolving enforcement cases for violations through: mutual civil
settlement; orders of abatement through the District’s Hearing Board; small
claims court adjudication; or referral of cases to the District’s contract legal
counsel for enforcement, the Placer County District Attorney’s Office, or
the State Attorney General’s Office.
Educating the public and permitted sources on air pollution rules and
regulations.
Assisting with emission control measures and rule development.
Enforcing open burning regulations in cooperation with local fire agencies,
through mutual support agreements, and obtaining fire agency costrecovery for response to air pollution violation incidents.

Section tasks and projects to be advanced in the 2026-2027 fiscal year are:
 Stationary Source Inspections: Target inspection schedules will be
maintained for a continually increasing number of stationary source
permits and portable engines and equipment in the State Registration
Program. For our federally permitted Title V and synthetic minor sources
(5 and 9 facilities respectively), inspections will be conducted with
procedures and at a frequency consistent with U.S. EPA guidelines.
 Asbestos from Construction and Demolition (C&D): In 2021, CARB
ended their oversight of the asbestos C&D Federal NESHAP and State
ATCM for air districts not authorized for this responsibility (which
includes Placer). Work will continue with CAPCOA, CARB, and the U.S.
EPA to implement an asbestos C&D program as may be necessary.


Consumer Product Retailers: As resources allow, we will continue pointof-sale inspections of retailers of consumer products – including
architectural and automotive coatings, water heaters, and wood stoves – for

14

Mission
Goal/Objective

1(a), 1(b), 1(c),
2(a), 2(b), 2(d),
3(a), 3(b), 3(c)
1(a), 1(b), 2(a),
2(b), 2(d), 2(f),
3(a), 3(b), 3(c)
1(a), 1(b)
2(d), 3(a), 3(b)
3(b)

1(c), 2(f)
1(e), 2(g), 4(b)
1(b), 3(c), 5(b)

1(b), 1(c), 2(a),
2(b), 2(d), 2(f)

1(b), 1(c), 2(a),
2(b), 2(d), 2(f)

1(a), 1(b), 2(a),
2(b), 2(d)

Placer County Air Pollution Control District
Fiscal Year 2026-27 Section Goals

















compliance with District rules.
Continuous Emissions Monitoring System Data Compliance Audits:
Audits of continuous emissions system monitoring data from our biomass
and natural gas burning electricity generation facilities will continue.
Field Safety: Compliance will be maintained with California Division of
Occupational Safety and Health requirements for field staff (including risks
from wildfire smoke events).
Visual Emissions Evaluation: Certifications will be conducted at the
office using the virtual reality headset methodology.
Inter-agency Cooperation: Collaboration will continue with allied
agencies, including CARB, the agricultural commissioner, planning,
building and public works departments, law enforcement, fire agencies,
code enforcement, animal control, and environmental health.
Nuisance Odors: Reports of foul odors in West Roseville and Lincoln will
be investigated. Sources, including the Western Regional Landfill,
Roseville and Lincoln sewage treatment plants, and organic agricultural
fields, will continue to be evaluated. In the fall of 2025, the District
received over 100 complaints of odors resulting from the application of
fertilizer on agricultural fields west of the landfill. While odors from
legitimate agricultural operations are exempt from both state and local
nuisance regulations, the District will continue to pursue collaboration with
farmers and the County Agricultural Commissioner to inform constituents
of potential odors.
Wood Burning Appliance Smoke: Efforts to reduce smoke impacts from
wood burning fireplaces and stoves will continue to be refined and
implemented.
Smoke from Prescribed Burning: Strategies to reduce smoke impacts from
open pile and broadcast burning will continue to be developed and
implemented, including:
- Enhanced community outreach, air quality monitoring, and
implementation of Smoke Management Plan requirements.
- Collaborate with other agencies to increase the pace and scale of
prescribed fire while mitigating air quality impacts, as directed by the
Governor’s Proclamation of March 1, 2025, Expanding Beneficial
Fire.
Smoke Management Program: Collaboration will continue with other air
districts in the Sacramento Valley Air Basin to implement the Smoke
Management Program developed in partnership to manage smoke from
agricultural burning. The District will monitor all categories of burning
for potential localized air quality impacts and implement outreach,
education, and enforcement, as appropriate. The Smoke Management
Program seeks to minimize smoke impacts on the public and avoid any air
quality standard exceedances.
Notice of Violation Settlement: Mutual negotiated settlement in a timely
basis will continue to prioritized. Alternative settlement through small
claims court, contract attorney, or District attorney will be utilized as

15

1(a), 1(b), 2(a),
2(b), 2(d)
1(b), 8, 9
1(b), 8, 9
3(c), 5(a), 5(b),
5(c)
1(a), 1(b), 2(b),
2(d), 2(f), 8

2(b), 2(c), 2(f)
1(a), 1(b), 2(b),
2(d), 2(f), 8

1(a), 1(b), 2(b),
2(d), 2(f), 8

3(b)

Placer County Air Pollution Control District
Fiscal Year 2026-27 Section Goals




needed to ensure District enforcement objectives are achieved.
Staffing: Extra help part-time specialists will continue to be used as needed 8(a)
for after-business hours on-call complaint response, patrol/surveillance,
and for an increasing number of stationary source permit inspections and
portable engines and equipment inspections.
Prescribed Burn Reporting and Monitoring Support Program Grant: In 2018, 1(a), 1(d), 2(a),
the legislature passed several bills signed by the governor to reduce wildfire 2(f), 3(c), 5(b)
risk. SB 865 appropriated $2 million to assist air districts in implementing
prescribed fire smoke management programs, enhancing smoke
monitoring, and providing public outreach. The District received an
allocation of $120,000 for FY 2026. Some of this will be used for
prescribed fire smoke management training and smoke monitoring.

16

Placer County Air Pollution Control District
Fiscal Year 2026-27 Section Goals
Services Section:
Administrative Services Section:

Mission
Goal/Objective

The Administrative Services Section is responsible for providing overall
administrative services and support for the District. Specific responsibilities of
the Section include:
 Preparation of monthly fiscal statements and review for management and
Board information.

















8

Clerk of the Board functions, including preparation of the Board Meeting
Agenda and the Board Packet that includes information and action items.
Track, file, and archive District documents.

8

Maintain District Policies and Procedures, including periodic review and
updates
Safety and risk, ensure training, regulatory compliance, and manage
incident response and prevention efforts.
Process payroll, accounts receivable, accounts payable, purchasing, cost
accounting, cost allocation, and participate in the biennial audit conducted by
outside auditors.
Preparation, oversight, management, and administration of grant and
professional services contracts, including inter-agency Memorandums of
Understanding.
Ensure the accounting and financial reporting practices comply with all
applicable governmental accounting standards and regulatory requirements,
including federal grant rules and audit expectations. This includes
maintaining accurate financial records, managing grant budgeting and fiscal
reporting, implementing internal controls, and ensuring ongoing audit
readiness to support the integrity of the District’s financial operations.
Assisting the Air Pollution Control Officer (APCO) in preparing the annual
budget, providing monthly fiscal status summaries, quarterly performance
statistics, and conducting financial projections and stability analyses to
support long‑term planning and decision‑making.
Maintenance of the District’s networked computers and office equipment,
and recommendations for equipment replacement.

8

Maintenance and upgrade of the District database program to the Accela
platform as well as train District staff on the use of the Accela program.
Oversee the maintenance of District motor vehicles and their sign-out by
staff.
Maintenance and control of personnel files and training logs (Personnel
Liaison).
Facility maintenance and operations for the District offices at 110 Maple
Street, Auburn, including management of repairs and scheduled preventive
maintenance, and oversight of building related service contracts.
Complete office management functions, including answering caller
inquiries, directing the public to the proper staff, and facilitating all business
transactions with the District.

5(b), 5(c), 8

17

5(c), 8

8, 9
5(b), 8
5(a), 5(b), 5(c), 8
8, 9

8

5(b), 5(c), 8

5(b), 5(c), 8
8
5(c), 8
8

Placer County Air Pollution Control District
Fiscal Year 2026-27 Section Goals
This effort will focus on analyzing the actual cost of providing these
Administrative Services Section:

Mission
Goal/Objective

Section tasks and projects to be advanced in the 2026-27 fiscal year are:






Technology Improvement Program: Management of the Strategic
Information Technology Master Plan and continued improvements to the
Accela platform.
 Client Access Portal Project: The District continues to expand its
delivery of electronic information and services to District clients and
the public through the Accela Citizen Access Portal. The Accela
platform allows the District to facilitate a client access portal that
provides online access to permit and billing information and client
contact profiles. The District will continue to expand the types of
available online applications to further enhance service to the
community.
ADA Compliance for Electronic Information: In the upcoming fiscal
year, staff will work collaboratively with internal program teams and
County IT to ensure that all electronic information made available to the
public complies with ADA accessibility standards. This effort will include
reviewing existing digital documents, forms, and web‑based content;
identifying formatting or structural barriers; and implementing necessary
updates to improve accessibility.
 Given the federal requirement for public‑facing electronic
documents to be fully accessible by April 26, 2027, the District has
begun prioritizing high‑use materials and developing internal
practices to support ongoing compliance. This includes establishing
consistent formatting standards, improving document creation
workflows, and ensuring that new materials are produced in an
accessible, user‑friendly format aligned with statutory accessibility
requirements.
Evaluation of Fee Structure and Cost Recovery: In the upcoming fiscal
year, management will evaluate the District’s fee structure and
cost-recovery practices for key program areas. This effort will focus on
analyzing the actual cost of providing these services, reviewing current
recovery rates and regulatory requirements, and identifying areas where
adjustments may be warranted to ensure equitable and sustainable funding.
• While the District is not yet prepared to engage a consultant for a
comprehensive fee study, this internal review will establish the
foundation for future evaluation and potential refinement of the fee
structure.
• Following completion of this analysis, District management
anticipates bringing recommended actions to the Board for
consideration, ensuring that any proposed adjustments support
effective cost recovery, maintain regulatory compliance, and align
with the District’s strategic and financial priorities.

18

1(a), 1(b), 1(c),
1(d), 2(d), 3(b),
4(a), 5(c), 8
8(b)

8

5(c), 8, 9

Placer County Air Pollution Control District
Fiscal Year 2026-27 Section Goals


Capital Facility Maintenance Plan for District Offices at 110 Maple
Street, Auburn: The on-going plan includes a schedule of required long
term maintenance for the building exterior, parking lot, roof, and interior
flooring. The plan provides an assessment and timeline for anticipated
services, to preserve the service life of the building. The FY 2026-27
Proposed Budget includes funds for the maintenance of the District in the
• amount of $25K.

5(c), 8



Continued Organization and Resource Assessment: In the prior fiscal
year, District management obtained Board approval to revise the
organizational structure to better support succession planning, staff
retention, and professional advancement opportunities. This action followed
a thorough evaluation of organizational needs and staffing resources.
• Ensuring that the District remains competitive in attracting and
retaining qualified personnel continue to be a key focus, along with
efforts to optimize workloads in alignment with statutory
requirements, available resources, and the evolving needs of Placer
County communities. Management will continue evaluating the
organizational structure in relation to workloads and available
resources to maintain operational efficiency and support long-term
strategic goals.

8(a), 9



Continuous Process Improvement: The Administrative Services Section
is committed to continuous process improvement to strengthen the
efficiency, accuracy, and reliability of the District’s administrative and
fiscal operations. This includes regularly reviewing workflows, identifying
opportunities to streamline procedures, enhancing internal controls, and
reducing operational and financial risk. By refining processes and adopting
best practices, the Section supports effective service delivery, promotes
accountability, and ensures that District resources are managed responsibly
and transparently.

8

19

Erik C. White, Air Pollution Control Officer

FY 2026-27 Proposed Budget
The Proposed Budget for FY 2026–27 provides a structurally balanced plan that maintains
services to the community, operations, and program administration, while also supporting
the District’s substantial investments in projects and clean air programs and promoting
long‑term financial stability and flexibility.
The District continues to evolve in response to increasing regulatory complexity, rising
community expectations, and the need for long-term organizational stability. Following the
recent organizational restructuring, the District is now in the process of implementing the
new structure. During this transition, management will continue to closely monitor
workflows, staffing needs, revenue trends, and overall operational impacts to ensure the
reorganization functions as intended and supports effective service delivery. This ongoing
oversight will allow the District to make timely adjustments and maintain continuity as the
new structure is phased in.
As part of ongoing fiscal oversight, district staff will evaluate the fee structure and
cost-recovery practices in the upcoming fiscal year. This review will focus on assessing the
actual cost of providing key services, examining current recovery levels within statutory
limits, and determining whether adjustments may be warranted to support equitable and
sustainable funding. While the District’s fees will continue to be adjusted based on the
annual CPI, staff will conduct a more detailed internal analysis to better understand
long-term cost trends and revenue needs. Upon completion of this review, management
may return to the Board with a recommendation to initiate a comprehensive fee and
cost-recovery study to ensure continued alignment with the District’s strategic and financial
priorities.
To further strengthen long-term financial stability, staff is also recommending an increase
to the reserve target, bringing it to 35 percent of operating appropriations. This enhanced
reserve level is intended to help mitigate financial risks associated with factors outside the
District’s control, including economic fluctuations, grant timing, and unforeseen
operational needs. Establishing a more robust reserve position supports continuity of
services and reinforces the District’s commitment to prudent financial planning. Additional
detail on the reserve target and related fund balance considerations is provided in the fund
balance section below.

Staffing Changes:
There are no proposed staffing changes to the upcoming budget.

Budget Overview:
The total Final Budget for FY 2026-27 is $19,840,896, comprising $5,816,928 for District
Operations, $12,387,593 for Incentives and Projects, and $1,636,375 in Appropriations for
Contingency. This reflects a 41% decrease from the adopted FY 2025-26 budget of
110 Maple Street, Auburn, CA 95603  (530) 745-2330  Fax (530) 745-2373  www.placerair.org
20

Erik C. White, Air Pollution Control Officer

$33,830,508. The decrease is primarily driven by a correction in accounting practices,
specifically the recognition of advance grant revenue only when it is earned rather than
when it is received. Under this GASB 33 compliant approach, advance grant revenues are
now budgeted in alignment with eligible expense appropriations. As a result, the prior
budget increase associated with the Hexavalent Chromium (Hex Chrome) Grant and the
incorporation of FARMER Fund grant administration into the formal budget no longer
appears as an upfront revenue spike. Despite this change in timing, overall revenue
projections remain stable.

Fund Summaries:


The Air Pollution Control District Fund (FD32400) contains seven Programs
within the Air Pollution Control District Cost Center (CC73000). Four of these
programs were newly introduced beginning FY 2025–26, following the district’s
revision of its chart of accounts. This update was implemented to enhance clarity and
transparency by clearly distinguishing revenues and appropriations between core
district operations and project-based or pass-through incentive funds. These programs
are components of the District’s chart of accounts described below:














General Administration (PG730011): General administration and facilities
costs are pooled here for allocation to benefiting programs and grants in
accordance with 2 CFR 200 for maximized cost recovery.
Operations (PG730000): The Operations Program is primarily focused on
administering incentive programs that fund equipment replacement and other
clean-air projects. Core responsibilities include processing applications,
evaluating project cost-effectiveness based on expected pollution-reduction
benefits, awarding funds to high-impact projects, and contracting with grant
award beneficiaries. The Program also manages funding agreements with
granting agencies and maintains policies and procedures to ensure effective
and compliant program administration.
Compliance and Enforcement (PG730008) This program captures District’s
efforts to uphold environmental standards and regulatory requirements. It tracks
both costs and revenues tied to inspections, investigations, and enforcement
actions.
Planning and Monitoring (PG730009) Focused on the strategic and operational
oversight of air quality initiatives, this program accounts for expenditures and
income related to planning, data collection, and air quality monitoring across the
County.
Permitting and Engineering (PG730010) This program reflects the District’s
technical operations, including permit processing, engineering evaluations, and
support services. It tracks the resources invested in ensuring projects meet
regulatory and environmental benchmarks.
DMV (PG730001): The DMV Program is restricted to grant awards for
incentives and funding for clean air projects. These funds are not available for
general operational use and must be awarded to eligible recipients in support of
specific air quality improvement initiatives.
Mitigation (PG730006): The Mitigation Program is a restricted program that
110 Maple Street, Auburn, CA 95603  (530) 745-2330  Fax (530) 745-2373  www.placerair.org
21

Erik C. White, Air Pollution Control Officer

is used only for the purposes described in each individual mitigation plan. The
revenue sources for this fund come from mitigation plans approved at the
discretion of the Land Use Authorities.



The FARMER Fund (Funding Agricultural Replacement Measures for Emission
Reductions) (FD32404), consisting of one Program (PG730020), is included in the
FY 2026-27 budget for approval and supports three multi-years, overlapping grants.
These grants provide incentive funding to reduce agricultural emissions through the
replacement of older diesel-powered equipment. The State began annual
appropriations for the FARMER program in FY 2017-18; however, funding was
discontinued in the FY 2024-25 State Budget and has not been reinstated. The
remaining three grant agreements, covering FY 2021–22 through FY 2023–24, are
expected to conclude by the end of FY 2028. Most of the project funding has already
been advanced or obligated, with all associated administrative activities expected to
be completed by that time.

Estimated Beginning Fund Balance Summary (FD32400) District Operations:
Beginning Fund Balances Budgeted for Fiscal Year (FY) 2026-27:
 Unassigned Fund Balance of $8,250,782
o $6,506,710 AB 923 DMV and Mitigation Designated for Projects
o $1,744,072 District Operations
 Restricted and Assigned Fund Balances of $4,837,280
o $2,035,925 Assigned - Reserves
o $25,000 Assigned - Capital Improvements
o $2,776,355 Restricted - PARS retirement
Unassigned Fund Balance:
The beginning unassigned fund balance related to District operations is currently estimated
at $1,744,072, reflecting a $2.5 million decrease from the prior year. This decline is
primarily attributable to the recommended $1.4 million increase in assigned reserves and the
$1.1 million reclassification of fund balance to unearned revenue for advanced
administrative grant funding.
The estimated beginning fund balance designated for projects, totaling $6,506,710,
represents a $2.7 million decrease from the prior year. This reduction is also driven by the
reclassification of fund balance to unearned revenue for advanced grant funding.
Although these fund balances decreased, District revenues remain strong, and the changes
reflect a correction in accounting treatment rather than a decline in financial performance.
The reclassification aligns the District’s reporting with the Governmental Accounting
Standards Board Statement No. 33 (GASB 33), ensuring that advanced grant funding is
recorded as unearned revenue until eligible costs are incurred.

110 Maple Street, Auburn, CA 95603  (530) 745-2330  Fax (530) 745-2373  www.placerair.org
22

Erik C. White, Air Pollution Control Officer

Assigned Reserve Funds:
In the FY 2007–08 budget, the Board designated $595,000 to the assigned fund balance. For
the upcoming fiscal year, District management recommends increasing the assigned reserve
to $2,035,925, representing 35% of budgeted operating expenditures. This level provides
the District with approximately four months of operating reserves, giving sufficient time to
respond to sudden economic shifts and mitigate the impacts of revenue volatility.
This recommendation reflects the relatively high-risk nature of the District’s revenue
sources. A significant portion of staffing and operations is supported by grant funding,
service and permit fees, and DMV registration surcharges, each of which is influenced by
external factors outside the District’s control. Grant revenue depends on legislative budget
decisions and statewide economic conditions, and fee and permit revenues fluctuate with
local development activity and broader economic cycles. In other air districts throughout
California, flattened or declining DMV registration surcharges, and slowing development
driven by population shifts, have contributed to structural budget deficits. While the District
is currently experiencing growth, these revenue streams can change quickly, making it
prudent to maintain reserves that safeguard the continuity of operations.
In addition to the operating reserve, the District will retain $25,000 within the assigned fund
balance specifically dedicated to emergency building maintenance.
Restricted Cash & Investments (PARS Account):
Funds related to the Public Agency Retirement Services (PARS) account for pensions were
designated as restricted fund balance in FY 2022-23. The District reconciles PARS earnings
and the restricted fund balance with the PARS Trust account balance at each fiscal year-end.
Given the District’s strong financial position in pension funding, no additional contributions
are anticipated for FY 2026-27. Additionally, based on current investment performance and
healthcare trend rates, Other Post Employment Benefits (OPEB) funding is anticipated to
remain stable at current contribution levels. Moving forward, the District will continue
working closely with Placer County to strategically balance pension and OPEB liabilities,
ensuring long-term financial sustainability.

Revenue Summary:


FD32400 APCD - $11,143,961
 Permits/Fines/Fees of $2,175,000 represent a 12% increase which includes
estimations for increasing fees by the annual CPI of 3.09% and bringing
revenues more in line with actuals.
 Investment Income of $343,858, representing a 13% increase over the prior year.
Lease income from the LAFCO office space increases by the 3.09% CPI
adjustment and earned interest increases based on current investment performance
and higher cash balances.
110 Maple Street, Auburn, CA 95603  (530) 745-2330  Fax (530) 745-2373  www.placerair.org
23

Erik C. White, Air Pollution Control Officer









Federal Intergovernmental Transfers of 1,843,904, representing a 42%
decrease to reflect the balance of the EPA Targeted Air Shed Clean Air and
Woodstove incentive multi-year grants that are set to expire at the end of the next
fiscal year. The EPA 103 and EPA 105 funding remains flat.
o $168,908 District Operations EPA Funding
o $1,674,996 EPA TAG Incentive Grant Funding
State Intergovernmental Transfers of $6,417,288, representing a 54% decrease
from the prior year mostly due to the change in recording multi-year advance grant
revenues as unearned until costs are incurred. This amount includes $2,580,000 in
DMV Surcharge revenues (a 3% increase due to historical growth), $627,970 for
grant administration, $90,000 for state subvention, $229,583 for clean air
monitoring, reporting, and burn programs, and $2,889,735 for incentive grant
projects.
Other Charges of $363,911, representing a 23% decrease from the prior year
primarily due to a reclassification of Other Fees to the Permit/Fines/Fees
classification and correcting advance grant funding for Tahoe area woodstove
replacement incentives. This amount includes $80,000 in aid from other
agencies, mostly for the Tahoe Regional Planning Agency (TRPA) Woodstove
Replacement Program, $217,411 for the Per Capita Assessment, $6,500 for BCC
fees, $10,000 for Health Fees related to Air Toxics, and $50,000 in Mitigation
Fees.

FD32404 FARMER - $446,153
 Investment Income of $100,000
 State Aid of $346,153

Appropriation Summary:


FD32400 APCD - $19,394,743
 Capital Assets total $84,000, representing a 29% decrease from the prior year.
This amount provides funding for the purchase of one new vehicle and for
air-monitoring equipment replacements that may be required in the event of
equipment failure. The decrease from the prior year is due to one-time,
grant-funded equipment purchases that are not planned for the upcoming year.
 Salaries and Benefits total $4,327,514, reflecting 0% change from the prior
year. This amount incorporates recently negotiated wage increases and key
elements of organizational restructuring. The total remains flat compared to the
prior budget primarily because several vacant positions that were previously
budgeted at higher more conservative salary and benefit levels were filled with
lower-cost, entry-level staff, generating savings that offset the increases in the
current year. Additionally, there is a modest vacancy included as the
restructuring continues to be implemented and workloads and needs monitored.
 Services and Supplies total of $1,092,038 remaining flat (0%) from the prior year.
The total includes an increase in the cost of general insurance, software licensing
for air monitoring data collection, and offset with slightly lower travel and training
110 Maple Street, Auburn, CA 95603  (530) 745-2330  Fax (530) 745-2373  www.placerair.org
24

Erik C. White, Air Pollution Control Officer

costs to bring the budget more in line with actual spending levels.









Projects and Incentives total $11,941,441, representing a 48% reduction from
the prior year. This decrease is driven by a change in how advance grant funding
is recorded, which in turn affects how related appropriations are budgeted. Rather
than budgeting for all available grant funds to be spent in the upcoming year, the
budget now includes only projects carried forward from prior years, project funds
included in the current Clean Air Program solicitation, and available mitigation
and estimated Hex Chrome related project spending.
County 2 CFR 200 Cost Allocation of $263,375 reflects a reduction of 18% from
the prior year.
Operating Transfers of $50,000 to the Settlement Fund for the annual building
purchase repayment.
Appropriations for Contingency of $1,636,375, representing a decrease of 64%
from the prior year. This reduction is directly tied to the change in how advance
grant funding is recorded, which lowers the unassigned fund balance carried
forward from prior years. The decrease is also influenced by the recommended
increase in assigned reserves.

FD32404 FARMER - $446,153
 Projects and incentive passthroughs of $446,153

Settlement Fund:
In FY 2007-08, the District received $2,742,500 in litigation settlement funds and $700,000
in litigation cost recovery funds from the Sierra Pacific Industries (SPI) case, initiated by the
State Attorney General’s Office on behalf of the District and other parties. These funds were
placed in an interest-bearing account, with the accrued interest designated for special projects
and programs.
In FY 2010-11, the Board approved the use of $1,500,000 from the Settlement Fund for the
purchase of the District facility at 110 Maple Street in Auburn. Additionally, $361,500 from
the Litigation Cost Recovery Fund was allocated for one-time facility relocation costs. In
approving this use, the Board directed staff, on an annual basis as appropriate, to repay funds
back to these Funds in order to return them to their original amounts.
For FY 2026-27, the District will allocate an annual $50,000 operating transfer to the
Settlement Fund to facilitate repayment for the facility purchase with funds drawn from the
Operations Fund. As of May 2026, the Settlement Fund maintains a balance of $2,417,500,
while the Litigation Cost Recovery Fund holds $338,500.

New Programs and Grants:
As part of the efforts to expand community engagement and strengthen public awareness of
District programs, the District recently completed a competitive Request for Proposals
(RFP) process for outreach and engagement services. Following the evaluation of submitted
110 Maple Street, Auburn, CA 95603  (530) 745-2330  Fax (530) 745-2373  www.placerair.org
25

Erik C. White, Air Pollution Control Officer

proposals, the District is preparing to enter into a contract with the selected firm to support
enhanced communication, outreach planning, and stakeholder engagement activities. This
new partnership will help advance the District’s strategic goals by improving the
accessibility, clarity, and reach of information provided to residents, businesses, and
community partners.

110 Maple Street, Auburn, CA 95603  (530) 745-2330  Fax (530) 745-2373  www.placerair.org
26

Erik C. White, Air Pollution Control Officer

Placer Air Pollution Control District (APCD) Budget
FY 2026-27
PCAPCD Fund 32400, Cost Center 73000
PROPOSED BUDGET
REVENUE
FY 2026-27

FY 2026-27

FY 2026-27

FY 2024-25

FY 2025-26

Total Operations and
Projects

Operations Budget

Projects Budget

Actuals

Adopted Budget

2,175,000

2,175,000

-

2,265,764

1,946,666

12%

228,334

Total Investment Income

343,858

343,858

-

984,443

304,107

13%

39,751

Total Federal Revenue

1,843,904

168,908

1,674,996

607,212

3,165,989

-42%

(1,322,085)

Total State Revenue

6,417,288

2,717,553

3,699,735

2,383,473

13,966,741

-54%

(7,549,453)

363,912

303,912

60,000

990,169

469,723

-23%

(105,812)

11,143,961

5,709,230

5,434,731

7,231,061

19,853,226

-44%

(8,709,265)

Ledger Account Group
Total Permits/Fines/Penalties

Total Other Charges/Misc
TOTAL REVENUES
Variance Checks

Variance from FY 2025-26
Adopted Budget

-

-

-

84,000

84,000

-

120,420

118,985

-29%

(34,985)

4,327,514

4,327,514

-

3,530,263

4,345,825

0%

(18,311)

4,546,407

23,957,928

-46%

(10,924,449)

EXPENSES
Total Capital Assets
Total Salaries and Benefits
Variance Check

Total Services and Supplies

-

13,033,479

1,092,038

11,941,441

-

Total Other Charges

263,375

263,375

-

202,285

321,205

-18%

(57,830)

Total Operating Transfers and Contingency

1,686,375

1,686,375

-

240,276

4,640,412

-64%

(2,954,037)

TOTAL EXPENSES

19,394,743

7,453,302

8,639,650

33,384,355

-42%

(13,989,612)

Variance Check

Ledgers Summary

-

Total Operations and
Projects

11,941,441

-

-

Final Operational
Budget

Final Project
Budget

-

FY 23-24 Actuals

-

Variance

FY 2025-26

TOTAL REVENUES

11,143,961

5,709,230

5,434,731

7,231,061

19,853,226

44%

(8,709,265)

TOTAL EXPENSES

19,394,743

7,453,302

11,941,441

8,639,650

33,384,355

42%

(13,989,612)

NET REV-EXP Budgeted (Dec)/Inc to Fund Balance

(8,250,782)

(1,744,072)

(6,506,710)

(1,408,589)

(13,531,129)

39%

5,280,347

Beginning Fund Balances

8,250,782

1,744,072

6,506,710

13,531,129

39%

(5,280,347)

Assigned Fund Balance Contingency
Building
Restricted Fund Balance Retirement
Total Assigned/Restricted Fund Balance

2,035,925
25,000
2,776,355
4,837,280

110 Maple Street, Auburn, CA 95603 • (530) 745-2330 • Fax (530) 745-2373 • www.placerair.org

27

Erik C. White, Air Pollution Control Officer

Placer Air Pollution Control District (APCD) Budget
FY 2026-27
FARMER Fund 32404, Cost Center 73002
PROPOSED BUDGET
REVENUE
FY 2026-27
Final Budget

Ledger
Total Investment Income

PG730011

100,000

FARMER
100,000

Total Federal Revenue

-

-

Total State Revenue

346,153

346,153

TOTAL REVENUES

446,153

446,153

Variance Checks

-

-

EXPENSES
Variance Check

-

Total Services and Supplies

446,153

446,153

-

-

446,153

446,153

Total Operating Transfers and Contingency
TOTAL EXPENSES

-

Ledgers Summary

-

Final Budget

FARMER

TOTAL REVENUES

446,153

446,153

TOTAL EXPENSES

446,153

446,153

0

0

NET REV-EXP Budgeted (Dec)/Inc to Fund Balance
Beginning FB Variance Check (Rounding)

-

Projected Beginning Fund Balances

-

Budgeted Ending Unassigned Fund Balances

0

0

110 Maple Street, Auburn, CA 95603 • (530) 745-2330 • Fax (530) 745-2373 • www.placerair.org
28

Air Pollution Control District
FY 2026-27 Proposed Budget

Total Revenue: $19,840,896
Permits & Fees,
$2,050,000 , 10%

Fund Balance Carryover,
$8,250,782 , 42%

Fines, Forfeitures, Penalties,
$125,000 , 1%

Investment Income,
$443,858 , 2%

Federal,
$1,843,904 , 9%

Charges and
Assessments,
$363,912 , 2%
State,
$6,763,441 , 34%

Air Pollution Control District

Total Expenses: $19,840,896

FY 2026-27 Proposed Budget
Transfers/Other Financing
Uses, $50,000 , 0%

County Cost
Allocation,
$263,375 , 1%

Appropriation for
Contingencies, $1,636,375
, 8%

Capital Assets,
$84,000 , 0%

Salaries & Benefits,
$4,327,514 , 22%
Projects and
Incentives,
$12,387,594 , 63%
Services &
Supplies,
$1,092,038 , 6%

29

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Audited Financial Statements and
Single Audit Report and Schedules
For the Two Fiscal Years Ended June 30, 2025

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PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Table of Contents
For the Two Fiscal Years Ended June 30, 2025
Page(s)
Independent Auditors’ Report .................................................................................................................... 1-3
Management’s Discussion and Analysis .................................................................................................. 4-12
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position ........................................................................................................ 15
Statement of Activities ............................................................................................................. 16
Governmental Fund Financial Statements:
Balance Sheet ......................................................................................................................... 17
Reconciliation of the Balance Sheet to the Statement of Net Position .................................. 18
Statement of Revenues, Expenditures and Changes in Fund Balance .................................. 19
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund
Balance to the Statement of Activities .................................................................................. 20
Notes to the Basic Financial Statements .................................................................................. 21-38
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual ................................................................................................................. 41-42
Schedule of District’s Proportionate Share of the Plan’s Net Pension Liability and
Related Ratios ............................................................................................................................ 43
Schedule of District’s Pension Contributions ................................................................................ 44
Schedule of District’s Proportionate Share of the Plan’s Net OPEB Liability (Asset)
and Related Ratios ..................................................................................................................... 45
Schedule of District’s OPEB Contributions ................................................................................... 46
Notes to the Required Supplementary Information ........................................................................ 47
Single Audit Section:
Independent Auditors’ Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards .......................................... 51-52
Independent Auditors’ Report on Compliance for Each Major Federal Program
and on Internal Control over Compliance Required by the Uniform Guidance...................... 53-55
Schedule of Expenditures of Federal Awards ................................................................................ 56
Notes to the Schedule of Expenditures of Federal Awards ................................................... ...57-58

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Table of Contents
For the Two Fiscal Years Ended June 30, 2025
Schedule of Findings and Questioned Costs:
I.
II.
III.

Summary of Auditors’ Results .................................................................................... 59
Financial Statement Findings ..................................................................................... 60
Federal Award Findings and Questioned Costs ......................................................... 60

INDEPENDENT AUDITORS’ REPORT
To the Board of Directors
Placer County Air Pollution Control District
Auburn, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and the general
fund of the Placer County Air Pollution Control District, (the District) as of and for the two years ended
June 30, 2025, and the related notes to the financial statements, which collectively comprise the District’s
basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and the general fund of the District as of
June 30, 2025, and the respective changes in financial position, for the two years then ended in accordance
with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the District and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.

1

LSLCPAS.COM

To the Board of Directors
Placer County Air Pollution Control District
Auburn, California
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes
our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control. Misstatements are considered material if there is a substantial likelihood that, individually
or in the aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
•

Exercise professional judgment and maintain professional skepticism throughout the audit.

•

Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.

•

Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the District’s internal control. Accordingly, no such opinion is expressed.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.

•

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the District’s ability to continue as a going concern for a
reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis, budgetary comparison information, and required pension and other postemployment benefits schedules as listed on the table of contents be presented to supplement the basic
financial statements. Such information is the responsibility of management and, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board who considers it
to be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.

2

To the Board of Directors
Placer County Air Pollution Control District
Auburn, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District’s basic financial statements. The accompanying schedule of expenditures of federal
awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards, is presented for purposes of
additional analysis and is not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the basic financial statements. The information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United States
of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation
to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 25, 2026,
on our consideration of the District’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the District’s internal control over financial reporting or on compliance. That report is an integral part of
an audit performed in accordance with Government Auditing Standards in considering District’s internal
control over financial reporting and compliance.

Sacramento, California
March 25, 2026

3

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Management’s Discussion and Analysis
For the Two Fiscal Years Ended June 30, 2025
As management of the Placer County Air Pollution Control District (the District), we offer readers of the
District’s financial statements this narrative overview and analysis of the financial activities of the District
for the two fiscal years ended June 30, 2025. We encourage readers to consider the information
presented here in conjunction with the District’s basic financial statements commencing on page 15.
Financial Highlights
•

The assets and deferred outflows of resources of the District exceeded its liabilities and deferred
inflows of resources at the close of the most recent fiscal year by $12,944,055 (net position).

•

As of the close of the most recent fiscal year, the District’s General Fund reported an ending fund
balance of $15,646,140.

•

The District had program and general revenues of $27,581,768 and program expenses of
$28,216,314 for the two fiscal years ended June 30, 2025.

Overview of the Financial Statements
The discussion and analysis is intended to serve as an introduction to the District’s basic financial
statements. The following three components comprise the District’s basic financial statements: 1)
government-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial
statements.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the
District’s finances, in a manner similar to a private-sector business.
The statement of net position presents information on all of the District’s assets, deferred outflows of
resources, liabilities and deferred inflows of resources as of the end of the fiscal year, with the differences
reported as net position. Over time, increases or decreases in net position may serve as a useful indicator
of whether the financial position of the District is improving or deteriorating.
The statement of activities presents information showing how the District’s net position changed during
the most recent fiscal years. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future fiscal
periods.
The government-wide financial statements report on the function of the District that is principally
supported by charges for services and intergovernmental revenues. The District's objective is to maintain
and improve Placer County's air quality for an aesthetically pleasing and healthful environment. Program
activities include administration, enforcement, engineering, ambient air quality monitoring, and planning
as related to air quality. This program is mandated by State and Federal laws and grant conditions to
provide an active and effective air pollution control program.
The government-wide financial statements can be found on pages 15 and 16 of this report.

4

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Management’s Discussion and Analysis
For the Two Fiscal Years Ended June 30, 2025
Governmental Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The District, like other state and local governments, uses
fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
General Fund
The General Fund is used to account for essentially the same function reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial
statements, the General Fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal year. Such
information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of the District’s General Fund is narrower than that of the government-wide financial
statements, it is useful to compare the information presented in the General Fund with similar information
presented for governmental activities in the government-wide financial statements. By doing so, readers
may better understand the long-term impact of the District’s near-term financial decisions. Both the
General Fund balance sheet and statement of revenues, expenditures, and changes in fund balances
provide a reconciliation to facilitate this comparison between the General Fund and the government-wide
financial statements. The General Fund financial statements can be found on pages 17 through 20 of this
report.
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in
the government-wide and fund financial statements. The notes to the basic financial statements can be
found on pages 21 through 38 of this report.
Government-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s financial
position. In the case of the District, assets and deferred outflows of resources exceeded liabilities and
deferred inflows of resources by $12,944,055, which represented a decrease of $634,546 or 4.7% in net
position at the close of fiscal year ended June 30, 2025.

5

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Management’s Discussion and Analysis
For the Two Fiscal Years Ended June 30, 2025
The District’s condensed statement of net position consists of the following as of June 30, 2025, and June
30, 2023:
Statement of Net Position
Increase (Decrease)

Current and other assets

2025

2023 (*)

Dollar
Change

Percent
Change

$ 21,447,153

$ 17,848,922

Net OPEB asset
Capital assets, net
Total assets

299,042
1,429,628
23,175,823

64,150
1,393,287
19,306,359

$ 3,598,231
234,892
36,341
3,869,464

20.2%
366.2%
2.6%
20.0%

Deferred outflows related to pensions
Deferred outflows related to OPEB
Total deferred outflows of resources

1,052,463
284,317
1,336,780

1,456,180
386,689
1,842,869

(403,717)
(102,372)
(506,089)

-27.7%
-26.5%
-27.5%

Current and other liabilities

5,703,366

1,812,004

3,891,362

214.8%

Long-term liabilities
Total liabilities

5,512,009
11,215,375

5,405,268
7,217,272

106,741
3,998,103

2.0%
55.4%

6,606
248,920
97,647
353,173

39,474
307,604
6,277
353,355

(32,868)
(58,684)
91,370
(182)

-83.3%
-19.1%
1455.6%
-0.1%

Investment in capital assets
Restricted for grants

1,429,628
-

1,393,287
6,500,831

36,341
(6,500,831)

2.6%
-100.0%

Restricted for pensions

2,623,972

1,972,235

651,737

33.0%

8,890,455
$ 12,944,055

3,712,248
$ 13,578,601

5,178,207
$ (634,546)

139.5%
-4.7%

Deferred inflows related to pensions
Deferred inflows related to OPEB
Deferred inflows of resources - leases
Total deferred inflows of resources

Unrestricted
Total net position

(*) Certain balances as of June 30, 2023 were revised resulting from restatement for error reported as of
June 30, 2025.

The increase in current and other assets of $3,598,231 or 20.2% was mainly due to the increases in total
cash and investments and in lease receivable offset by the decrease in due from other governments and
receivable. The increase in total cash and investments was due to advance State grants received and not
spent as of June 30, 2025. The increase in lease receivable was due to a lease amendment that
extended a lease with a third party for office space. The decrease in due from other governments and
receivable was due to a combination of fewer reimbursable grant revenues not received prior to fiscal
year end and the timing of reimbursement payments from granting agencies compared to the prior year.

6

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Management’s Discussion and Analysis
For the Two Fiscal Years Ended June 30, 2025
The decreases in deferred outflows and inflows of resources related to pension of $403,717 or 27.7% and
$32,868 or 83.3%, respectively, were mainly due to the differences between expected and actual plan
experience and higher than expected investment returns.
The increase in current and other liabilities of $3,891,362 or 214.8% was mostly attributable to increases
in accounts payables and accrued expenses and unearned revenue. The increase in accounts payables
and accrued expenses was largely due to the timing of grant-related invoices that were received near
year end and approved for payment thereafter. The increase in unearned revenue was due to the District
receiving advance State grants as of June 30, 2025, and had not spent the grant fundings.
The increase in long-term liabilities of $106,741 or 2.0% was mainly due to the increase in compensated
absences resulting from the implementation of GASB Statement 101, Compensated Absences.
The increase in net OPEB asset of $234,892 or 366.2% and the decreases in deferred outflows and
inflows of resources related to OPEB of $102,372 or 26.5% and $58,684 or 19.1%, respectively, were
mainly due to updated healthcare trend rates and the increase in discount rate from 6.8% to 7.25%. The
increase in deferred inflows of resources related to leases of $91,370 or 1455.6% was due to the lease
amendment (District as Lessor).
The decrease in net position restricted for grants of approximately $6.5 million or 100.0% was due to
unspent grant proceeds prior to fiscal year ended June 30, 2023, which were reported as restricted net
position. The District properly recorded unspent grant proceeds as unearned revenue until all eligibility
requirements were met for the two fiscal years ended June 30, 2025. The increase in net position
restricted for Public Agency Retirement Services (PARS) pension of $651,737 or 33.0% is due to the
District continues to set aside amounts to fund their pension obligation.

7

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Management’s Discussion and Analysis
For the Two Fiscal Years Ended June 30, 2025
For the two fiscal years ending June 30, 2025, and June 30, 2023, the District’s statement of activities
were as follows:
Statement of Activities
Increase (Decrease)
2025

2023 (*)

Dollar
Change

Percent
Change

$ 28,216,314

$ 19,068,308

$ 9,148,006

48.0%

Charges for services
Operating grants and contributions

5,577,317
19,696,453

6,393,205
19,137,002

(815,888)
559,451

-12.8%
2.9%

Total program revenues

25,273,770

25,530,207

(256,437)

-1.0%

Net Program Revenues (Expenses)

(2,942,544)

6,461,899

(9,404,443)

-145.5%

Investment earnings

2,251,219

(143,316)

2,394,535

1670.8%

Rental income
Total general revenues

56,779
2,307,998

56,384
(86,932)

395
2,394,930

0.7%
2754.9%

Changes in net position

(634,546)

6,374,967

(7,009,513)

-110.0%

13,578,601
$ 12,944,055

7,203,634
$ 13,578,601

6,374,967
$ (634,546)

88.5%
-4.7%

Program Expenses
Air pollution control
Program Revenues

General Revenues

Net position, July 1, 2023, as restated
Net position, June 30, 2025

(*) Certain balances for the two fiscal years ended June 30, 2023 were revised resulting from restatement for error
reported for the two fiscal years ended June 30, 2025.

Net position decreased by $634,546 for the two fiscal years ended June 30, 2025. The District’s program
expenses increased by approximately $9.1 million or 48.0% primarily due to the increases in salaries and
benefits of approximately $1.0 million and DMV projects expenses of $7.9 million. Program revenues
decreased by $256,437 or 1.0% mainly due to the decrease in charges for services of $815,888 or 12.8%
offset by the increase in operating grants and contributions of $559,451 or 2.9%. Refer to the fund
financial analysis section for reasons for the changes. General revenue increased by approximately $2.4
million mainly due to the increase in investment earnings resulting from the increase in cash and
investments balance and strong investment performance.

8

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Management’s Discussion and Analysis
For the Two Fiscal Years Ended June 30, 2025
Fund Financial Analysis
The focus of the District’s General Fund is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the District’s financing
requirements. In particular, fund balance may serve as a useful measure of the District’s net resources
available for spending for program purposes at the end of the fiscal year. As of the end of the most recent
fiscal year, the District’s General Fund reported an ending fund balance of $15,646,140.
The following table presents revenues by source for the two fiscal years ended June 30, 2025, and June
30, 2023:
Revenues by Source
2023

2025
Amount
Licenses and permits
Fines, forfeitures and penalties
Investment earnings
Rental income
Intergovernmental
Mitigation fees
Charges for services
Miscellaneous
Total

$

Percentage
of Total

3,847,429
394,349

13.95%
1.43%

2,251,219
56,779
19,688,959

8.16%
0.21%
71.38%

845,171
490,368
7,494
$ 27,581,768

Amount
$ 2,997,306
612,918

Increase (Decrease)
Percentage
of Total

Dollar
Change

Percent
Change

11.78%
2.41%

$ 850,123
(218,569)

28.4%
-35.7%

(143,316)
56,384
19,010,533 *

-0.56%
0.22%
74.72%

2,394,535
395
678,426

1670.8%
0.7%
3.6%

3.06%

2,341,484

9.20%

(1,496,313)

-63.9%

1.78%
0.04%
100.00%

441,497
126,469
$ 25,443,275

1.74%
0.49%
100.00%

48,871
(118,975)
$ 2,138,493

11.1%
-94.1%
8.4%

(*) Balance was revised resulting from restatement for error reported for the two fiscal years ended June 30, 2025.

The key factors attributable to the revenue changes were as follows:
•

Licenses and permits increased by $850,123 or 28.4% as a result of additional permits issued
and a modest increase in permit fees.

•

Fines, forfeitures, and penalties decreased by $218,569 or 35.7% as a result of a decline in the
amount of penalties assessed.

•

Investment earnings increased by $2,394,535 due to the increase in cash and investments
balance along with a strong investment performance.

•

Intergovernmental revenue increased by $678,426 or 3.6% driven largely by increased EPA
reimbursements for Targeted Airshed Grant projects. The growth reflects higher fiscal year 2024
funding for Placer County school district bus replacement initiatives approved under the program.

•

Mitigation fees decreased by $1,496,313 or 63.9% due to reduced residential and commercial
development planning activity compared to the prior two fiscal years, resulting in fewer fees
assessed. In addition, revenue received in lieu of fines declined for the period, which is used to
fund school air-filtration projects.

9

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Management’s Discussion and Analysis
For the Two Fiscal Years Ended June 30, 2025
The following table presents expenditures by function for the two fiscal years ended June 30, 2025, and
June 30, 2023:
Expenditures by Function
FY 2025
Percentage
Amount
of Total

FY 2023
Percentage
Amount
of Total

Increase (Decrease)
Dollar
Percent
Change
Change

6,779,307
18,714,284
1,487,087

24.24%
66.92%
5.32%

$ 5,772,751

29.92%

$ 1,006,556

17.4%

10,822,761
1,841,900

56.10%
9.55%

7,891,523
(354,813)

72.9%
-19.3%

Mitigation
Rents and leases
Communications and postage
Office equipment and supplies
Insurance

391,633
40,067
50,958
132,129

1.40%
0.00%
0.14%
0.18%
0.47%

457,647
9,774
56,147
55,803
65,117

2.37%
0.05%
0.29%
0.29%
0.34%

(66,014)
(9,774)
(16,080)
(4,845)
67,012

-14.4%
-100.0%
-28.6%
-8.7%
102.9%

Utilities
Travel and transportation
Maintenance
Fuels and lubricants
Membership dues and subscriptions

49,694
82,502
15,400
16,382
26,788

0.18%
0.30%
0.06%
0.06%
0.10%

39,928
42,815
12,219
14,553
12,539

0.21%
0.22%
0.06%
0.08%
0.06%

9,766
39,687
3,181
1,829
14,249

24.5%
92.7%
26.0%
12.6%
113.6%

33,794
146,244
$ 27,966,269

0.12%
0.53%
100.00%

31,638
56,520
$ 19,292,112

0.16%
0.30%
100.00%

2,156
89,724
$ 8,674,157

6.8%
158.7%
45.0%

Salaries and benefits
DMV projects
Other professional services

Training and education
Capital outlay
Total

$

The key factors attributable to the expenditure changes were as follows:
•

Salaries and benefits increased by $1,006,556 or 17.4% due to adding two new administrative
and fiscal positions in FY2023-24, along with negotiated wage increases and the higher cost of
health and retirement benefits.

•

DMV projects increased by $7,891,523 or 72.9% as a result of an increase in approved incentive
grant funded clean air projects (e.g., replacement of existing buses with efficient/clean air school
buses, electric charging stations, etc.)

•

Other professional services decreased by $354,813 or 19.3%, reflecting modestly reduced
expenditures for consultant and other professional services due to the decrease in consulting
activities for the two fiscal years ended June 30, 2025.

•

Capital outlay increased by $89,724 or 158.7% mainly due to the purchases of one vehicle and
several Ozone Calibrators.

10

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Management’s Discussion and Analysis
For the Two Fiscal Years Ended June 30, 2025
Budgetary Highlights
Differences between the actual revenues and the actual expenditures for the fiscal year ended June 30,
2025, resulted in a fund deficit of $3,096,937. For the fiscal year ended 2024-2025, total actual revenue
was higher than total budgeted revenue by $336,778. The revenue variance with the final budget was due
to largely due to increased permit, investment, mitigation, and state DMV revenue, offset by
lower-than-budgeted federal revenue. Total actual expenditures were lower than total budgeted
expenditures by $4,192,150. The expenditure variance with the final budget was primarily due to the
timing of planned grant funded incentive projects, with some projects being deferred to a future year.
Differences between the actual revenues and the actual expenditures for the fiscal year ended June 30,
2024, resulted in the increase in fund balance of $2,712,436. For the fiscal year ended 2023-2024, total
actual revenues were higher than total budgeted revenues by $9,031,915. The revenue variance with the
final budget was due to increased state and federal incentive grant funding and robust investment
income. Total actual expenditures were lower than total budgeted expenditures by $767,156. The
expenditure variance with the final budget was primarily due to staffing vacancies and lower than
budgeted benefit costs.
Capital Assets
The District’s investment in capital assets was $1,429,628 as of June 30, 2025, net of accumulated
depreciation, comprised of land, equipment, and building and improvements. Refer to Note 5 for
additional details on capital assets.
Long-Term Liabilities
The District’s total compensated absences and net pension liabilities were $549,380 and $4,962,629,
respectively, as of June 30, 2025. Refer to Notes 6 and 9 for additional details on long-term liabilities.
Economic Factors and Next Year’s Budget and Rates
The following factors were considered in preparing the District’s budget for the fiscal year 2025-2026:
•

Pass-through grants supporting clean air projects are budgeted in the amount of approximately
$23.3 million from the DMV AB923, Carl Moyer, FARMER, and various clean air and climate
investment program grant funds, as well as the approved mitigation plan funds. As mitigation
plans are approved, the funds from these plans will be available to increase the amount granted
to those worthy projects. These Clean Air Grants are issued to entities which have projects that
lower the emission of air pollutants in Placer County.

•

Professional Services Agreements in the amount of approximately $987.2 thousand are budgeted
to provide support to the District for county services, consulting, and increased outreach and
public engagement services.

•

The District includes modest increases to permit fees as a part of the annual budget process per
the District Rule 601.

•

The District’s budget provides for 22 full-time positions, 20 of which are currently filled, along with
three extra-help employees. Following an organizational review by the District in fiscal year 20242025, the District Board approved two new management positions to oversee four programmatic
divisions. Fiscal year 2025-2026 permanent staffing adjustments also include overfilling the
Accounting Assistant role with an Accountant I/II and underfilling a Senior Air Pollution Control

11

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Management’s Discussion and Analysis
For the Two Fiscal Years Ended June 30, 2025
Engineer at the Assistant level. A small vacancy factor is included to account for anticipated
turnover during the reorganization implementation period.
•

The purchase of up to two District replacement vehicles for the aging fleet was budgeted in the
amount of $60,000 and clean air monitoring equipment of approximately $59,000.

•

Building operations and maintenance costs were budgeted in the amount of $25,000 for the
preservation of the District building at 110 Maple Street in Auburn.

Contacting the District’s Financial Management
This financial report is designed to provide a general overview of the District’s finances for all those with
an interest. Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to Mr. Erik White, Placer County Air Pollution Control District,
110 Maple Street, Auburn, California 95603.

12

Basic Financial Statements

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PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Statement of Net Position
June 30, 2025
Assets
Cash and investments
Restricted cash and investments
Due from other governments
Receivable
Interest receivable
Lease receivable
Net OPEB asset
Capital assets:
Nondepreciable
Depreciable, net
Total assets

$

13,780,841
6,984,804
507,556
12,575
58,350
103,027
299,042
275,000
1,154,628
23,175,823

Deferred Outflows of Resources
Deferred outflows related to pensions
Deferred outflows related to OPEB
Total deferred outflows of resources

1,052,463
284,317
1,336,780

Liabilities
Accounts payable and accrued expenses
Unearned revenue
Long-term liabilities:
Due within one year:
Compensated absences
Due in more than one year:
Compensated absences
Net pension liability
Total liabilities

1,342,534
4,360,832

54,938
494,442
4,962,629
11,215,375

Deferred Inflows of Resources
Deferred inflows related to pensions
Deferred inflows related to OPEB
Deferred inflows related to leases
Total deferred inflows of resources

6,606
248,920
97,647
353,173

Net Position
Net investment in capital assets
Restricted for pensions
Unrestricted
Total net position

$

1,429,628
2,623,972
8,890,455
12,944,055

The notes to the basic financial statements are an integral part of this statement.

15

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Statement of Activities
For the Two Fiscal Years Ended June 30, 2025
Program Expenses:
Governmental activities:
Air pollution control

$

28,216,314

Program Revenues:
Charges for services
Operating grants and contributions
Total program revenues

5,577,317
19,696,453
25,273,770

Net Program Expenses

(2,942,544)

General Revenues:
Investment earnings
Rental income
Total general revenues

2,251,219
56,779
2,307,998

Change in net position

(634,546)

Net position, July 1, 2023, as previously presented
Restatement for error correction
Net position, July 1, 2023, as restated
Net position, June 30, 2025

$

14,692,568
(1,113,967)
13,578,601
12,944,055

The notes to the basic financial statements are an integral part of this statement.

16

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Balance Sheet
June 30, 2025
Assets
Cash and investments
Restricted cash and investments
Due from other governments
Receivable
Interest receivable
Lease receivable
Total assets

$

$

13,780,841
6,984,804
507,556
12,575
58,350
103,027
21,447,153

Liabilities
Accounts payable
Salaries and wages payable
Unearned revenue
Total liabilities

$

1,203,199
139,335
4,360,832
5,703,366

Deferred Inflows of Resources
Leases

97,647

Fund Balance
Restricted for pensions
Unassigned
Total fund balance

2,623,972
13,022,168
15,646,140

Total liabilities, deferred inflows of resources, and fund balance

$

21,447,153

The notes to the basic financial statements are an integral part of this statement.

17

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Reconciliation of the Balance Sheet to the Statement of Net Position
June 30, 2025
Amounts reported for governmental activities in the statement of net position
are different because:
Total fund balance

$

15,646,140

Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the fund.
Nondepreciable
Depreciable, net

275,000
1,154,628

Net OPEB asset reported in governmental activities are not current
financial resources and are not reported in the fund.

299,042

Differences between expected and actual experiences, assumption
changes and net differences between projected and actual earnings and
contributions subsequent to the measurement date for the postretirement
benefits (pension and OPEB) are recognized as deferred outflows of
resources and deferred inflows of resources on the statement of net
position.
Deferred outflows - pension related
Deferred outflows - OPEB related
Deferred inflows - pension related
Deferred inflows - OPEB related

1,052,463
284,317
(6,606)
(248,920)

Long term liabilities that are not due and payable in the current period, and
therefore, are not reported in the fund.
Compensated absences
Net pension liability

(549,380)
(4,962,629)

Net position of governmental activities

$

12,944,055

The notes to the basic financial statements are an integral part of this statement.

18

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Statement of Revenues, Expenditures, and Changes in Fund Balance
Two Fiscal Years Ended June 30, 2025
Revenues:
Licenses and permits
Fines, forfeitures and penalties
Investment earnings/(loss)
Rental income
Intergovernmental:
Federal
State
Mitigation fees
Charges for services
Miscellaneous
Total revenues

$

3,847,429
394,349
2,251,219
56,779
3,024,897
16,664,062
845,171
490,368
7,494
27,581,768

Expenditures:
Current:
Air Pollution Control:
Salaries and benefits
DMV projects
Other professional services
Mitigation
Communications and postage
Office equipment and supplies
Insurance
Utilities
Travel and transportation
Maintenance
Fuels and lubricants
Membership dues and subscriptions
Training and education
Capital outlay
Total expenditures

6,779,307
18,714,284
1,487,087
391,633
40,067
50,958
132,129
49,694
82,502
15,400
16,382
26,788
33,794
146,244
27,966,269

Net change in fund balance

(384,501)

Fund balance, July 1, 2023, as previously presented
Restatement for error correction
Fund balance, July 1, 2023, as restated
Fund balance, June 30, 2025

$

17,144,608
(1,113,967)
16,030,641
15,646,140

The notes to the basic financial statements are an integral part of this statement.

19

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balance to the Statement of Activities
For the Two Fiscal Years Ended June 30, 2025
Amounts reported for governmental activities in the statement of activities are
different because:
Net change in fund balance

$

(384,501)

Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of these assets is allocated over their estimated
useful lives and reported as depreciation/amortization expense. This is the
amount by which capital outlays exceeded depreciation/amortization expense in
the current period.
Capital outlay
Depreciation expense

146,244
(109,903)

Some expenses reported in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in the
governmental funds.
Changes in deferred outflows and inflows of resources related to pension
Changes in deferred outflows and inflows of resources related to OPEB
Change in compensated absences
Change in net pension liability
Change in OPEB asset
Change in net position of governmental activities

(370,849)
(43,688)
(138,455)
31,714
234,892
$

(634,546)

The notes to the basic financial statements are an integral part of this statement.

20

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 1 – Reporting Entity
Organization
The Placer County Air Pollution Control District (District) is one of 35 local air pollution control agencies
established pursuant to Section 40002 of the California Health and Safety Code (HSC). The District has
primary responsibility for the control of air pollution from all local sources, other than the emissions from
motor vehicles which is the responsibility of the California Air Resources Board (CARB).
The District's objective is to maintain and improve Placer County's air quality for an aesthetically pleasing
and healthful environment. Program activities include administration, enforcement, engineering, ambient
air quality monitoring, and planning as related to air quality. This program is mandated by State and Federal
laws and grant conditions to provide an active and effective air pollution control program.
The governing board of the District is composed of nine members, three members from the Placer County
Board of Supervisors and six members who are Mayors or City Council Members of cities incorporated
within Placer County: Auburn, Colfax, Lincoln, Loomis, Rocklin, and Roseville.
Note 2 – Summary of Significant Accounting Policies
Accounting Policies
The District accounts for its financial transactions in accordance with the policies and procedures of the
County of Placer. The accounting policies of the District conform to accounting principles generally
accepted in the United States of America as prescribed by the Governmental Accounting Standards Board
(GASB).
Government-Wide and Governmental Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of activities)
report information on the District’s activities. The District is only engaged in governmental activities and is
primarily supported by intergovernmental revenues and charges for services.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment is offset by program revenues. Program revenues include 1) charges paid by the recipients of
goods or services offered by the District and 2) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular program. Program expenses are those that are clearly
identifiable with a specific function or segment.
Separate financial statements are provided for the District’s governmental fund. The General Fund is the
general operating fund of the District and is used to account for all the District’s financial resources and
activities.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded
when a liability is incurred, regardless of the timing of cash flows.

21

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 2 – Summary of Significant Accounting Policies (Continued)
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.
The General Fund is accounted for on a spending or "financial flow" measurement focus. The reported fund
balance is considered a measure of "available spendable resources."
The General Fund is accounted for using the modified accrual basis of accounting. Revenues are
recognized in the accounting period in which they become both measurable and available to finance
expenditures of the current accounting period. Expenditures are recognized when the related fund liability
is incurred (when goods are received, or services rendered). Revenues are considered to be available if
they are collected within 180 days of the end of the fiscal year.
Cash and Investments
The District maintains cash in the Placer County Treasury where it is pooled with other County funds. The
County Treasurer’s investment pool is subject to oversight by the Placer County Treasurer’s Review Panel.
The District’s share of the pooled cash account is separately accounted for and interest earned, net of
related expenses, is apportioned at the end of each month based upon the relationship of its average daily
cash balance of the total of the pooled account. The County’s pooled investments are stated at fair value.
The value of the District’s pool shares that may be withdrawn is determined on an amortized cost basis,
which approximates fair value. The County’s Annual Comprehensive Financial Report (ACFR), containing
information relating to the County’s cash and investments by risk category, can be obtained from Placer
County Auditor-Controller’s Office.
The district also maintains restricted cash and investments in the Public Agency Retirement Services
(PARS) Index Plus Moderately Conservative investment pool, a separate pension trust, to prefund the
District’s pension obligations. The District’s share of the pooled cash and investments is separately
accounted for and investment earnings (or losses) and expenses, are allocated at the end of each month
based on the District’s proportionate share of the investment pool.
Lease Receivable
The District serves as a lessor and leases District-owned office space. The financial statements recognize
a lease receivable and a deferred inflow of resources, based on the present value of the future lease
payments expected to be received during the contracted lease term, and the deferred inflow of resources
is amortized evenly over the life of the lease.
If amendments or other certain circumstances occur that are expected to significantly affect the amount of
the lease, the present value is remeasured, and corresponding adjustments are made. Lease contracts
include increases to rent payments related to the consumer price index (CPI) or similar indices, and the
available index increase is included in the present value at the commencement of the lease or upon
remeasurement. Payments based on future performance are not included in the measurement of the lease
liability or lease receivable but recognized as revenue or expense in the period performed. Residual value
guarantees and exercise options will be included in the measurement if they are reasonably certain to be
paid or exercised.

22

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 2 – Summary of Significant Accounting Policies (Continued)
Capital Assets
Capital assets are stated at cost unless they are donated, in which case they are stated at their acquisition
value at the date of donation. The District defines capital assets as assets with an estimated useful life in
excess of one year and an initial individual cost of $5,000 for equipment and $100,000 for building and
improvements. All land acquisitions are capitalized regardless of value.
Capital assets are depreciated using the straight-line method. The estimated useful lives are as follows:
building and improvements – 10 to 50 years and equipment – 2 to 25 years.
Due from Other Governments
Receivables consist primarily of permits and grants. Management believes its receivables to be fully
collectable and, accordingly, no allowance for doubtful accounts is recorded.
Compensated Absences
The District recognizes a liability for compensated absences for leave time that 1) has been earned for
services previously rendered by employees, 2) accumulates and is allowed to be carried over to subsequent
years, and 3) is more likely than not to be used as time off or settled (paid in cash or payment to an
employee’s flex spending account) during or upon separation from employment. The liability is calculated
based on pay rates in effect on June 30, 2025, in addition to those salary-related payments that are directly
and incrementally associated with payments made for compensated absences on termination, such as
Social Security and Medicare taxes.
All regular employees of the District earn paid vacation hours. The amount of vacation hours earned is
based on the years of continuous service and the various conditions negotiated by the bargaining unit to
which the employee belongs. Except for management employees, no more than 400 hours, or 520 hours
after 10 continuous years of service, may be accumulated as of the last day of the first full pay period of
each calendar year. Management employees can accumulate up to 520 hours. Upon termination,
employees are entitled to a lump sum payment for accrued vacation and compensatory time off.
All regular employees are given credit for eight hours of sick leave during each month of employment with
accumulation limits based on contract term with each bargaining unit. Unless otherwise stated below, upon
termination of employment, for employees working 40 hours per week, no pay shall be given for the first 24
days of sick leave in the employee’s account. The remaining sick leave shall be paid at the rate of 50% of
the hourly pay rate of the employee at the time of termination. No employee shall receive more than two
thousand dollars for such unused sick leave.
Each bargaining unit will be entitled to use sick leave balances upon retirement as summarized below:
•

Placer Public Employees Organization General Unit (PPEO) – Effective June 9, 2018, employees with
balances in excess of 1,000 hours will no longer accrue sick leave hours until their balance falls below
1,000 hours. Effective January 2023, all employees and current retirees shall receive reimbursement
for monthly group health insurance premiums utilizing the dollar value of the employee’s sick leave
balance, up to 1,500 hours, at the time of retirement; any excess will be applied to CalPERS Service
Credit.

23

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 2 – Summary of Significant Accounting Policies (Continued)
•

Management and Confidential Employees – On May 24, 2011, the Board of Supervisors approved
the following change: upon retirement, Management and Confidential employees will have 100%
of unused sick leave hours placed in a retiree health savings plan for reimbursement of health
insurance premiums and expenses incurred for health care expenditures as allowable under the
IRC Section 213. There is no sick leave cap for this group.

Unearned Revenue
Unearned revenue represents State grants that have been received but have not been earned and spent.
Deferred Outflows and Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred outflows of
resources, which represents a consumption of net assets that applies to future periods and so will not be
recognized as an expense until then. The District reports deferred outflows of resources related to pensions
and OPEB.
In addition to liabilities, the statement of net position and balance sheet report a separate section for
deferred inflows of resources, which represent an acquisition of net assets that applies to future periods
and will not be recognized as revenue until that time. The District reports deferred inflows of resources
related to pensions, OPEB, and leases.
Pensions
For purposes of measuring the net pension liability and deferred outflows and deferred inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of the County of
Placer, California Public Employees’ Retirement System (CalPERS)’s Miscellaneous Plan (the Plan) and
additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as
they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms. Investments
are reported at fair value.
Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability (asset), deferred outflows and deferred inflows of
resources related to OPEB, and OPEB expense, information about the fiduciary net position of the County
of Placer’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net position have been
determined on the same basis as they are reported by CalPERS. For this purpose, the OPEB Plan
recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are
reported at fair value, except for money market investments and participating interest-earning investment
contracts that have a maturity at the time of purchase of one year or less, which are reported at cost.

24

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 2 – Summary of Significant Accounting Policies (Continued)
Net Position
The government-wide financial statements utilize a net position presentation. Net position represents the
difference between assets, deferred outflows of resources, liabilities, and deferred inflows of resources.
The District’s net position is categorized as follows:
•

Net investment in capital assets – This category groups all capital assets into one component of net
position. Accumulated depreciation reduces the net position balance. Debt incurred and outstanding to
construct and/or acquire capital assets, net of unspent proceeds, also reduces the balance in this
category.

•

Restricted – This category consists of restricted assets reduced by liabilities related to those assets
and represents restricted cash and investments for contributions made to PARS to prefund the District’s
pension obligation.

•

Unrestricted – This category represents the net position of the District that is not restricted for any
project or other purpose.

The District’s policy is to first apply restricted resources when an expense is incurred for purposes for which
both restricted and unrestricted net position are available.
Fund Balance
In the governmental fund financial statements, the General Fund reports fund balance as restricted and
unassigned based primarily on the extent to which the District is bound to honor constraints on how specific
amounts can be spent. The District’s fund balance is categorized as follows:
•

Restricted fund balance – amounts with constraints placed on their use that are either (a) externally
imposed by creditors, grantors, contributors, or laws or regulations of other governments or (b) imposed
by law through constitutional provisions or enabling legislation.

•

Unassigned fund balance – is the residual classification for the General Fund and includes all amounts
not contained in the other classifications. Unassigned amounts are available for any purpose.

In circumstances when an expenditure is made for a purpose for which amounts are available in multiple
fund balance classifications, fund balance is generally depleted in the order of restricted and unassigned.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

25

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 2 – Summary of Significant Accounting Policies (Continued)
Current Governmental Accounting Standards Board (GASB) Pronouncements
The District adopted the following GASB pronouncements for the two fiscal years ended June 30, 2025:
The GASB issued Statement No. 100, Accounting Changes and Error Corrections, in June 2022. This
Statement improves the clarity of the accounting and financial reporting requirements for accounting
changes and error corrections, which results in greater consistency in application in practice.
The GASB issued Statement No. 101, Compensated Absences, in June 2022. The objective of this
Statement is to better meet the information needs of financial statement users by updating the recognition
and measurement guidance for compensated absences and by aligning the recognition and measurement
guidance under a unified model and by amending certain previously required disclosures. With the
implementation of this statement, the District disclosed the net change in compensated absences liability.
The District adopted GASB Statement No. 102, Certain Risk Disclosures, effective fiscal year ended June
30, 2025. The objective of this Statement is to provide users of government financial statements with
information about risks related to a government’s vulnerabilities due to certain concentrations or constraints
that is essential to their analyses for making decisions or assessing accountability. The implementation of
this Statement does not have an impact on the District’s financial statements for the fiscal year ended June
30, 2025.
Note 3 – Cash and Investments
The District’s cash and investments as of June 30, 2025, consisted of the following:
Cash and investments in Treasury Pool
Restricted cash and investments in Treasury Pool
Restricted cash and investments in PARS
Imprest cash
Total

$

$

13,780,541
4,360,832
2,623,972
300
20,765,645

As discussed in Note 2, the District maintains cash and investments with the County and involuntarily
participates in the County Pool, which is not rated by the credit rating agencies. As of June 30, 2025, the
District’s investment in the County Pool totaled $18,141,373, which included restricted cash and
investments of $4,360,832. The weighted average to maturity of the County’s Pool was 659 days as of June
30, 2025. Additional information regarding the County Pool, including the investment portfolio and related
interest rate, custodial credit, credit and concentration of credit risks, is presented in Note 2 of the County’s
ACFR. The District has not formally adopted an investment policy that addresses any of the risks previously
noted as the District follows the County’s investment policy. Deposits and withdrawals from the County Pool
are made on the basis of cost, and not fair value.
The County Pool is subject to regulatory oversight by the Treasurer’s Review Panel of the County, as
required by Section 27134 of the California Government Code. The County Pool is not registered with the
U.S. Securities and Exchange Commission (SEC) as an investment company.

26

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 3 – Cash and Investments (Continued)
The District’s restricted cash and investments in the County pool of $4,360,832 as of June 30, 2025,
represented advance funds received from the State related to AB923 for the reduction of mobile source
emissions and carry out California Clean Air Act activities such as air monitoring and air quality planning.
The district also maintains restricted cash and investments with PARS in a separate pension trust to prefund
the District’s pension obligations, which totaled $2,623,972 as of June 30, 2025. The District’s cash and
investments are held in an Index Plus Moderately Conservative investment pool, which comprised of 3% in
cash, 73% in mutual fund equity, and 24% in mutual fund fixed income. The investment pool was not rated,
and the weighted average maturity of the Pool was 2,865 days as of June 30, 2025.
Fair Value Measurement
The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s
fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are
significant other observable inputs; Level 3 inputs are significant unobservable inputs. As the District
participates in the County Pool and the PARS' Index Plus Moderately Conservative pool, external
investment pools, it is not subject to the fair value hierarchy. The District’s investments are valued at net
asset value.
Required disclosure information regarding categorization of investments and other deposit and investment
risk disclosures can be found in the County’s ACFR and may be obtained by contacting Placer County
Auditor-Controller’s Office at 2970 Richardson Drive, Auburn, California 95603 or by visiting
www.placer.ca.gov.
Note 4 – Lease Receivable
The District entered into a sublease agreement as lessor with a third party for office space. The lease terms
include the noncancelable lease period. The District’s lease arrangement does not contain any material
residual value guarantees. As the interest rate implicit in the District’s lease is not readily determinable, the
District utilizes its incremental borrowing rate to discount the lease payments.
The total amount of deferred inflows of resources relating to lease principal and interest recognized for the
two fiscal years ended June 30, 2025 were $49,868 and $6,911, respectively.
The following table presents principal and interest requirements to maturity associated with the lease
revenue to be received:
Fiscal Year
Ending June 30,
2026
2027
2028
2029
Total

Principal
$
24,702
25,392
26,102
26,831
$
103,027

27

$

$

Interest
2,470
1,780
1,070
340
5,660

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 5 – Capital Assets
Capital asset activities for the two fiscal years ended June 30, 2025, were as follows:
Balance
July 1, 2023

Additions

Balance
July 1, 2025

Deletions

Capital assets, not being depreciated
Land

$

275,000

$

-

$

-

$

275,000

Capital assets, being depreciated
Building and improvements

1,562,892

-

-

499,081

146,244

(49,361)

595,964

2,061,973

146,244

(49,361)

2,158,856

Building and improvements

(590,771)

(57,234)

-

(648,005)

Equipment

(352,915)

(52,669)

49,361

(356,223)

(943,686)

(109,903)

49,361

(1,004,228)

Equipment
Total capital assets, being depreciated

1,562,892

Less accumulated depreciation for:

Total accumulated depreciation
Total capital assets, being depreciated, net
Total capital assets

$

1,118,287
1,393,287

$

36,341
36,341

-

$

$

1,154,628
1,429,628

Note 6 – Long-Term Liabilities
Changes in long-term liabilities during the two fiscal years ended June 30, 2025, were as follows:

Balance
July 1, 2023
Compensated absences

$

410,925

Additions
$

138,455 (*) $

Amount
Due Within
One Year

Balance
June 30, 2025

Deletions
-

$

549,380

$

54,938

(*) The change in the compensated absences liability is presented as a net change.

Note 7 – Self-Insurance
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The District participates in the County
of Placer's Self Insurance Program. The County provides general liability, workers' compensation,
unemployment, vision care, and dental benefits under self-insured plans.
The District purchases commercial insurance for general liability coverage, which has no deductible and
provides coverage to a maximum of $1,000,000 for each occurrence. To date there has been no significant
reduction in any of the District’s insurance coverage, and no settlement amounts have exceeded
commercial insurance coverage for the last three years.

28

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 8 – Related Party Transactions
The County of Placer provides and charges for a variety of services to the District including accounting and
legal services, which are derived from the County of Placer Countywide Cost Allocation Plan. The district
also signs a Memorandum of Understanding (MOU) with the Auditor-Controller’s Office to provide additional
general accounting, payroll, and financial reporting services. The charges for these services are included
in the financial statements as other professional services. For the two fiscal years ended June 30, 2025,
the total amount charged was $779,427.
Note 9 – Pension Plan
Plan Description
The District participates and contributes to the County’s Miscellaneous Plan administered by the California
Public Employees Retirement System (CalPERS), an agent multiple-employer defined benefit public
employee retirement plan, that acts as a common investment and administrative agent for various local and
state governmental agencies within the State of California. The County’s Miscellaneous Plan is part of the
Public Agency portion of CalPERS’ agent multiple-employer defined benefit plan. The benefits for the public
agencies are established by contract with CalPERS in accordance with the provisions of the Public
Employees Retirement Law (PERL). CalPERS issues a publicly available financial report that includes a
full description of the pension plans regarding benefit provisions, assumptions and membership information
that can be found on the CalPERS website.
For financial reporting purposes, the District reports a proportionate share of the County’s net pension
liability, pension expense, and deferred outflows and inflows of resources. Accordingly, the disclosures and
required supplementary information (RSI) have been reported for the District as a cost-sharing pension
plan.
All full and part-time permanent employees of the District and certain extra help employees who have
worked over 1,000 hours in a fiscal year are eligible to participate in CalPERS. Per diem employees and
extra help employees working less than 1,000 hours in a fiscal year are not eligible. Benefits vest after five
years of service. To be eligible for retirement an employee must be at least 50 years of age and have five
years of CalPERS credited service. Effective January 1, 2013, new CalPERS members are subject to the
Public Employees’ Pension Reform Act (PEPRA) and to be eligible for retirement, an employee must be at
least 52 years of age and have five years of CalPERS credited service.
All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one
of the following: the basic death benefit, the optional settlement 2, special, or lump sum. The cost-of-living
adjustments for each plan are applied as specified by the PERL.

29

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 9 – Pension Plan (Continued)
Benefits Provided
The benefits in effect as of June 30, 2025, are summarized as follows:

Benefit formula
Minimum service years to vest
Benefit payments
Earliest allowable retirement age
Monthly benefits, as a % of eligible compensation

Tier 1
Hired on or before

Tier 2
Hired on or after

Tier 3
Hired on or after

March 12, 2011

March 13, 2011

January 1, 2013

2.5 % @ 55
5
monthly for life
50
2.00% - 2.50%

2% @ 55
5
monthly for life
50
1.43% - 2.42%

2% @ 62
5
monthly for life
52
1.00% - 2.50%

Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer
contribution rates for all public employers be determined on an annual basis by the actuary and shall be
effective on July 1 following a notice of a change in the rate. Funding contributions are determined through
CalPERS' annual actuarial valuation process. The actuarially determined rate is the estimated amount
necessary to finance the costs of benefits earned by employees during the year, with an additional amount
to finance any unfunded accrued liability. The District is required to contribute the difference between the
actuarially determined rate and the contribution rate of employees.
The Placer Public Employee Organization’s represented employees pay 100.00% of their employee
pension contribution ranging from 7.00% to 8.00%. For Management employees, the County pays 7.00%
of the 8.00% of the Tier 1 employee contribution. Management employees hired on or after March 13, 2011
(Tier 2 and Tier 3 employees) pay 100.00% of their employee contribution ranging from 7.00% to 8.00%,
respectively. For Confidential and Unclassified Nonmanagement employees, the County pays 6.00% of the
8.00% of the Tier 1 employee contribution. Confidential and Unclassified Nonmanagement employees hired
on or after March 13, 2011 (Tier 2 and Tier 3 employees) pay 100.00% of their employee contribution
ranging from 7.00% to 8.00%, respectively. For the fiscal year ended June 30, 2025, the average active
employee contribution rate was 7.79% of annual pay, and the employer’s contribution rate was 10.34%.
Employer contribution rates may change if Plan contracts are amended. The District’s contributions to the
Miscellaneous Plan for the fiscal years ended June 30, 2025, and 2024 were $691,693 and $635,876,
respectively.
Pension Liability, Pension Expense, and Deferred Outflows/Inflows of Resources Related to
Pensions
As of June 30, 2025, the District reported a net pension liability of $4,962,629 for its proportionate share of
the County’s Miscellaneous Plan’s net pension liability. The District’s net pension liability is measured as
the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the plan
is measured as of June 30, 2024, using an annual actuarial valuation as of June 30, 2023, rolled forward
to June 30, 2024. The District’s proportionate share of the County’s Miscellaneous Plan’s net pension
liability as of June 30, 2025, was 0.872%, which was an increase of 0.003% from fiscal year ended June
30, 2023.

30

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 9 – Pension Plan (Continued)
For the two years ended June 30, 2025, the District recognized total pension expense of $1,666,704. As of
June 30, 2025, the District reported deferred outflows of resources and deferred inflows of resources related
to pension from the following sources:

Contributions subsequent to measurement date

Deferred Outflows
of Resources

Deferred Inflows
of Resources

$

$

691,693

-

Changes of assumptions

51,048

-

Differences between expected and actual experiences

172,568

6,606

Net differences between projected and actual earnings
on pension plan investments
Total

137,154
1,052,463

6,606

$

$

The amount of $691,693 reported as deferred outflows of resources related to pensions, resulting from the
District’s contributions to the County’s Plan subsequent to the measurement date, will be recognized as a
reduction of the net pension liability in the year ending June 30, 2026. Other amounts reported as deferred
outflows and deferred inflows of resources related to pensions will be recognized over five years for the net
differences between projected and actual earnings on pension plan investments and over the expected
average remaining service lifetime (EARSL) of employees for the remaining items as follows:
Fiscal Year
Ending June 30,

Pension
Expense Amount

2026
2027

$

2028
2029
Total

$

120,014
313,801
(25,529)
(54,122)
354,164

The EARSL for the County’s Miscellaneous Plan was 3.3 years for the measurement period ended June
30, 2024.

31

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 9 – Pension Plan (Continued)
Actuarial Assumptions
The total pension liability in the Miscellaneous Plan’s actuarial valuation as of June 30, 2025, was
determined using the following actuarial assumptions:

Valuation date
Measurement date
Actuarial cost method
Actuarial assumptions
Discount rate
Inflation
Projected salary increase
(1)

Mortality
Post-retirement benefit increase

June 30, 2023
June 30, 2024
Entry age actuarial cost method
6.90%
2.30%
Varies by entry age and service
Derived using CalPERS' membership data for all funds
The lesser of contract COLA or 2.30% until purchasing
power protection allowance floor, 2.30% thereafter

(1)

The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the
2021 CalPERS Experience Study and Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality
improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer
to the 2021 experience study report from November 2021 that can be found on the CalPERS website.

Changes of Assumptions
There were no changes of assumptions in fiscal year ended June 30, 2025.
Long-Term Expected Real Rate of Return
The long-term expected rate of return on pension plan investments was determined using a building-block
method in which expected future real rates of return (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class. In determining the long-term expected
rate of return, CalPERS took into account both short-term and long-term market return expectations. Using
historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated
over the next 20 years using a building-block approach. The expected rate of return was then adjusted to
account for assumed administrative expenses of 10 Basis points.

32

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 9 – Pension Plan (Continued)
The expected real rates of return by class are as follows:

Asset Class

Assumed Asset
Allocation

(1)

Global Equity - Cap-Weighted
Global Equity - Non-Cap-Weighted
Private Equity
Treasury
Mortgage-Backed Securities
Investment Grade Corporates
High Yield
Emerging Market Debt
Private Debt
Real Assets
Leverage
Total
(1)
(2)

Discount Rate

Real

Return (1) (2)

30.00%
12.00%

4.54%

13.00%
5.00%

7.28%
0.27%
0.50%
1.56%
2.27%
2.48%
3.57%
3.21%
-0.59%

5.00%
10.00%
5.00%
5.00%
5.00%
15.00%
-5.00%
100.00%

3.84%

An expected inflation of 2.30% used for this period.
Figures are based on the 2021 Asset Liability Management study.

The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used
to determine the discount rate assumed that contributions from plan members will be made at the current
member contribution rates and that contributions from employers will be made at statutorily required rates,
actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members. Therefore, the long-term
expected rate of return on plan investments was applied to all periods of projected benefit payments to
determine the total pension liability.
Sensitivity of the District’s proportionate share of the County’s Miscellaneous Plan’s Net Pension
Liability to Changes in the Discount Rate
The following presents the District’s proportionate share of the County’s net pension liability as of June 30,
2025, calculated using the discount rate of 6.90%, as well as what the District’s proportionate share of the
County’s net pension liability would be if it were calculated using a discount rate that is one percentage
point lower or one percentage point higher than the current rate.

Current
Discount Rate
6.90%

1% Decrease
5.90%
Net Pension Liability

$

6,895,425

33

$

4,962,629

1% Increase
7.90%
$

3,355,977

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 9 – Pension Plan (Continued)
Pension Plan Fiduciary Net Position
Detailed information about the County’s collective net pension liability is available in the County’s separately
issued ACFR. The County’s ACFR may be obtained by contacting the Placer County Auditor-Controller’s
Office at 2970 Richardson Drive, Auburn, California 95603.
Detailed information about the pension plan’s collective fiduciary net position is available in the separately
issued CalPERS financial reports.
Note 10 – Other Postemployment Benefits Plan
Plan Description
The District contributes to the other postemployment healthcare benefits provided by the County to its
retirees under its Retiree Healthcare Plan in accordance with various labor agreements. The County
contributes to the California Employers’ Retiree Benefit Trust (CERBT), an agent multiple employer plan
administered by CalPERS. CalPERS issues a publicly available ACFR that includes financial statements
and RSI. Copies of CalPERS’ ACFR may be obtained from their Executive Office, 400 Q Street, P.O. Box
942701, Sacramento, California 94229.
For financial reporting purposes, the District reports a proportionate share of the County’s net OPEB liability
(asset), OPEB expense, and deferred outflows and inflows of resources. Accordingly, the disclosures and
RSI have been reported for the District as a cost-sharing OPEB plan.
Benefits Provided
In accordance with California Government Code, all employees electing a CalPERS retirement date within
120 days of retiring from the County are eligible to receive healthcare benefits for life. The District provides
postretirement medical and dental benefits to employees who retire after the age of 50 and with five years
of service and ten years of CalPERS service if hired after January 1, 2005. Eligible retirees can continue
participation in the medical and dental plans, with the District contributing up to a cap, which varies by
bargaining unit.
Contributions
The County Board of Supervisors is granted the authority to establish and amend contribution requirements
of the County, employees, and retirees. The Board establishes rates based on an actuarially determined
rate based on annual actuarial valuation reports. For the fiscal year ended June 30, 2025, the annual
required contribution rate was $4,113 per employee (excluding extra help) to prefund as determined
annually through the County budget process. The District’s contribution to the plan for fiscal years ended
June 30, 2025 and 2024 were $76,379 and $131,320, respectively.
OPEB Liability (Asset), OPEB Expenses and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to OPEB
At June 30, 2025, the District reported an asset of $299,042 for its proportionate share of the County’s net
OPEB asset. The net OPEB asset was measured as of June 30, 2024, and the total OPEB liability used to
calculate the net OPEB asset was determined by an actuarial valuation as of that date.

34

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 10 – Other Postemployment Benefits Plan (Continued)
The District’s proportion of the net OPEB asset was based on the number of full-time equivalents of eligible
employees employed by the District in relation to the total number of eligible employees as of the
measurement date. The District’s proportionate share of the County’s net OPEB asset as of June 30, 2025,
was 0.5938% which was an increase of 0.0449% from fiscal year June 30, 2023.
For the two fiscal years ended June 30, 2025, the District recognized OPEB expense of $16,495. OPEB
expense represents the change in the total OPEB asset during the measurement period, adjusted for actual
contributions and the deferred recognition of changes in actuarial assumptions or method.
As of June 30, 2025, the District reported deferred outflows of resources and deferred inflows of resources
related to OPEB from the following sources:
Deferred Outflows
of Resources
OPEB contributions subsequent to measurement date
Changes of assumptions

$

Differences between expected and actual experience
Net differences between projected and actual earnings
on OPEB plan investments
Total

$

76,379
39,662

Deferred Inflows
of Resources
$

66,288

161,813

182,632

6,463
284,317

248,920

$

The amount of $76,379 reported as deferred outflows of resources related to OPEB resulting from the
District’s contributions subsequent to the measurement date will be recognized as a reduction of the net
OPEB asset in the fiscal year ended June 30, 2026. Other amounts reported as deferred outflows and
deferred inflows of resources related to OPEB will be recognized over five years for the net differences
between projected and actual earnings on OPEB plan investments and over the expected average
remaining service lifetime (EARSL) of employees for the remaining items as follows:
Fiscal Year
Ending June 30,

OPEB Expense
Amount

2026
2027
2028
2029
2030
Thereafter
Total

$

(73,313)

$

62,329
(37,125)
(33,496)
27,083
13,540
(40,982)

The EARSL for the County’s OPEB plan was 6.5 years for the measurement period ended June 30, 2024.

35

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 10 – Other Postemployment Benefits Plan (Continued)
Actuarial Assumptions
The District’s net OPEB asset was measured as of June 30, 2024, and the total OPEB liability used to
calculate the net OPEB asset was determined by an actuarial valuation as of June 30, 2024.

Valuation date

June 30, 2024

Measurement date
Actuarial assumptions:

June 30, 2024

Discount rate

7.25%

Inflation
Mortality

2.30%
Based on assumptions for Public Agency Miscellaneous and
Police members published in the 2021 CalPERS Experience
Study. These tables include generational mortality
improvement using 80% of scale MP-2020.

Healthcare Cost Trend

6.80% for fiscal year 2025, trending down to 4.04% over 51
years. Applies to calendar years.

Changes of Assumptions
The inflation actuarial assumption decreased from 2.50% from fiscal year ended 2023 to 2.30% in fiscal
year ended 2025, and the discount rate increased from 6.80% to 7.25% for the same periods.
The CERBT enables employers to pre-fund liabilities for OPEB. Three diversified policy portfolios (Strategy
1, 2, and 3) are available for employers to select depending on employer preferences for return and risk
(volatility) expectations. By comparison, Strategy 1 has the higher long-term expected rate of return and
return volatility, Strategy 2 has a moderate long-term expected rate of return and return volatility, and
Strategy 3 has the lower long-term expected rate of return and return volatility. The County’s OPEB plan
invested in Strategy 1 in the CERBT; however the OPEB plan’s long-term expected rate of return was
based on the assets held by PARS and was determined using the long-term rates of return developed by
PFM Asset Management for PARS as follows:

Asset Class

Target
Allocation

Domestic Equity
International Developed Equity
Emerging Markets Equity
Real Estate Investment Trusts
Short-Term Bonds
Core Fixed Income
High Yield
Cash
Total

57.4%
10.3%
5.3%
2.0%
3.0%
16.0%
1.0%
5.0%
100.0%

36

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 10 – Other Postemployment Benefits Plan (Continued)
Discount Rate Development
The discount rate used to measure the total OPEB liability was 7.25%. GASB 75 requires that the liability
discount rate be the single rate that reflects the following:
a. The long-term expected rate of return on OPEB plan investments used to finance the payment of
benefits, to the extent that (1) the OPEB plan’s fiduciary net position is projected to be sufficient to
make projected benefit payments and (2) OPEB plan assets are expected to be invested using a
strategy to achieve that return; and
b. A yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average
rating of AA/Aa or higher (or equivalent quality on another rating scale), to the extent that the
conditions in a are not met.
GASB 75 has very specific rules regarding the projection of benefit payments, contributions, and Fiduciary
Net Position used to determine the discount rate. Regardless of an employer's actual funding policy, the
valuation assumes that (1) benefits are paid out of the OPEB trust until assets are depleted, and (2)
projected employer contributions are first applied to employee service costs in each period (including future
employees) before paying for current accrued benefit costs.
The liability discount rate was developed using the alternative method described in paragraph 39 of GASB
75, which states that "if the evaluations required by paragraph 37 can be made with sufficient reliability
without a separate projection of cash flows into and out of the OPEB plan, alternative methods may be
applied in making the evaluations."
Based on these parameters and GASB 75 guidelines, the future plan assets are projected to be sufficient
to pay all future benefits. Therefore, the discount rate is equal to the long-term expected investment return
assumption.
Sensitivity of the Net OPEB Liability (Asset) to Changes in the Discount Rate and Healthcare Cost
Trend Rate
The following table presents the District’s proportionate share of the County’s net OPEB liability (asset), as
well as what the District’s proportionate share of the County’s net OPEB liability (asset) would be if it were
calculated using a discount rate that is one percentage point lower or one percentage point higher than the
current discount rate:

1% Decrease
6.25%
Net OPEB Liability (Asset)

$

20,064

37

Current
Discount Rate
7.25%
$

(299,042)

1% Increase
8.25%
$

(566,658)

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Basic Financial Statements
For the Two Fiscal Years Ended June 30, 2025
Note 10 – Other Postemployment Benefits Plan (Continued)
The following table presents the District’s proportionate share of the County’s net OPEB liability (asset) as
well as what the District’s proportionate share of the County’s net OPEB liability (asset) would be if it were
calculated using healthcare cost trend rates that are one percentage point lower or one percentage point
higher than the current healthcare cost trend rates:
Current
Trend Rate
(6.80%)

1% Decrease
(5.80%)
Net OPEB Liability (Asset)

$

(595,960)

$

(299,042)

1% Increase
(7.80%)
$

61,245

OPEB Plan Fiduciary Net Position
Detailed information about the OPEB plan’s collective fiduciary net position is available in the separately
issued CalPERS financial reports and detailed information about the County’s collective net OPEB asset is
available in the County’s separately issued ACFR. The County’s ACFR may be obtained by contacting the
Placer County Auditor-Controller’s Office at 2970 Richardson Drive, Auburn, California 95603.
Note 11 – Restatement of Net Position and Fund Balance
During the two fiscal years ended June 30, 2025, the Districted restated beginning net position and fund
balance of $1,113,967 to properly record unearned revenue. State grant proceeds were previously recorded
as revenue upon receipt, rather than being recorded as unearned revenue until all eligibility requirements
were met.

38

Required Supplementary Information

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PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual
For the Fiscal Year Ended June 30, 2025

Budgeted Amounts
Original
Final

Variance with
Final Budget
Positive (Negative)

Actual
Amounts

Revenues:
Licenses and permits
Fines, forfeitures and penalties
Investment earnings
Rental income
Intergovernmental - Federal
Intergovernmental - State
Mitigation fees
Charges for services
Miscellaneous
Total revenues

$

1,727,484
79,240
288,162
27,564
2,438,040
4,741,323
216,302
1,000
9,519,115

$

1,727,484
79,240
288,162
27,564
2,595,471
4,994,823
216,302
1,000
9,930,046

$

2,140,473
125,291
1,408,899
28,608
620,472
5,096,726
594,219
239,928
12,208
10,266,824

$

412,989
46,051
1,120,737
1,044
(1,974,999)
101,903
594,219
23,626
11,208
336,778

Expenditures:
Current:
Air Pollution Control:
Salaries and benefits
DMV projects
Other professional services
Mitigation
Communications and postage
Office equipment and supplies
Insurance
Utilities
Travel and transportation
Maintenance
Fuels and lubricants
Membership dues and subscriptions
Training and education
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over expenditures

3,588,416
5,400,427
717,934
2,000
73,282
60,896
71,420
35,800
79,372
25,390
10,500
10,620
24,346
130,610
10,231,013

3,588,416
10,690,990
878,430
1,718,408
73,282
60,896
71,420
35,800
79,372
36,618
10,500
10,620
24,346
276,813
17,555,911

3,530,263
8,485,721
752,187
243,150
15,278
33,964
70,810
30,798
38,913
7,847
5,903
11,992
16,515
120,420
13,363,761

58,153
2,205,269
126,243
1,475,258
58,004
26,932
610
5,002
40,459
28,771
4,597
(1,372)
7,831
156,393
4,192,150

(711,898)

(7,625,865)

(3,096,937)

(3,855,372)

500,000
500,000
1,000,000

500,000
500,000
1,000,000

-

500,000
500,000
1,000,000

Other Financing Uses
Transfers out
Appropriation for contingencies
Total other financing uses
Net change in fund balance

$

288,102

$

(6,625,865)

$

(3,096,937)

$

(2,855,372)

The notes to the required supplementary information are an integral part of this schedule.

41

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Required Supplementary Information
Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual
For the Fiscal Year Ended June 30, 2024

Budgeted Amounts
Original
Final

Variance with
Final Budget
Positive (Negative)

Actual
Amounts

Revenues:
Licenses and permits
Fines, forfeitures and penalties
Investment earnings
Rental income
Intergovernmental - Federal
Intergovernmental - State
Mitigation fees
Charges for services
Miscellaneous
Total revenues

$

1,525,900
97,680
74,999
20,679
1,866,892
4,427,168
55,133
213,578
1,000
8,283,029

$

1,525,900
97,680
74,999
20,679
1,866,892
4,427,168
55,133
213,578
1,000
8,283,029

$

1,706,956
269,058
842,320
28,171
2,404,425
11,567,336
250,952
250,440
(4,714)
17,314,944

$

181,056
171,378
767,321
7,492
537,533
7,140,168
195,819
36,862
(5,714)
9,031,915

Expenditures:
Current:
Air Pollution Control:
Salaries and benefits
DMV projects
Other professional services
Mitigation
Communications and postage
Office equipment and supplies
Insurance
Utilities
Travel and transportation
Maintenance
Fuels and lubricants
Membership dues and subscriptions
Training and education
Capital outlay
Total expenditures

3,993,743
4,006,912
747,518
57,133
41,000
53,986
59,946
30,476
71,482
22,622
10,000
4,000
29,094
81,600
9,209,512

3,993,743
8,256,948
799,157
1,915,110
41,000
54,486
59,946
30,476
71,482
22,622
10,000
4,000
29,094
81,600
15,369,664

3,249,044
10,228,563
734,900
148,483
24,789
16,994
61,319
18,896
43,589
7,553
10,479
14,796
17,279
25,824
14,602,508

744,699
(1,971,615)
64,257
1,766,627
16,211
37,492
(1,373)
11,580
27,893
15,069
(479)
(10,796)
11,815
55,776
767,156

Excess (deficiency) of revenues
over expenditures

(926,483)

(7,086,635)

2,712,436

8,264,759

50,000
500,000
550,000

50,000
500,000
550,000

-

50,000
500,000
550,000

Other Financing Uses
Transfers out
Appropriation for contingencies
Total other financing uses
Net change in fund balance

$

(376,483)

$

(6,536,635)

$

2,712,436

$

8,814,759

The notes to the required supplementary information are an integral part of this schedule.

42

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Required Supplementary Information
Schedule of District's Proportionate Share of the Plan's Net Pension Liability and Related Ratios
Last Ten Fiscal Years

Fiscal
Year

District's
Proportion of
the Plan's Net
Pension
Liability

2016
2017
2018
2019
2020
2021
2022
2023
2024
2025

1.04%
1.03%
0.90%
0.86%
0.83%
0.84%
0.84%
0.87%
0.89%
0.87%

District's
Proportionate
Share of the
Plan's Net
Pension Liability
$

3,466,452
4,043,784
4,448,258
4,382,233
4,714,972
4,350,260
3,159,009
4,994,343
5,208,150
4,962,629

District's
Covered
Payroll
$ 1,502,764
1,564,099
1,479,996
1,457,540
1,509,569
1,639,916
1,487,426
1,530,431
1,741,313
1,805,520

43

District's
Proportionate
Share of the
Plan's Net
Pension Liability
as a Percentage
of its Covered
Payroll

Plan's Fiduciary
Net Position as a
Percentage of the
Plan's Total
Pension Liability

Measurement
Date

230.67%
258.54%
300.56%
300.66%
312.34%
265.27%
212.38%
326.34%
299.09%
274.86%

69.18%
65.40%
64.88%
66.53%
65.59%
64.71%
75.33%
64.55%
65.28%
67.70%

6/30/2015
6/30/2016
6/30/2017
6/30/2018
6/30/2019
6/30/2020
6/30/2021
6/30/2022
6/30/2023
6/30/2024

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Required Supplementary Information
Schedule of District's Pension Contributions
Last Ten Fiscal Years

Fiscal
Year

Actuarially
Determined
Contributions

Contributions in
Relation to the
Actuarially
Determined
Contribution

2016

$

$

328,006

Contribution
Deficiency
(Excess)

Covered
Payroll

Contributions as
a Percentage of
Covered Payroll

328,006

-

1,564,099

20.97%

2017

350,252

350,252

-

1,479,996

23.67%

2018

357,551

357,551

-

1,457,540

24.53%

2019

368,923

368,923

-

1,509,569

24.44%

2020

398,652

398,652

-

1,639,916

24.31%

2021

446,142

446,142

-

1,487,426

29.99%

2022

540,318

540,318

-

1,530,431

35.30%

2023

656,068

656,068

-

1,741,313

37.68%

2024

635,876

635,876

-

1,805,520

35.22%

2025

691,693

691,693

-

1,941,882

35.62%

Notes to Schedule:
Valuation date

$

The ADC for the fiscal year ended June 30, 2025 was based on the June 30, 2022 actuarial
funding valuation report.

Methods and assumptions used to determine contribution rates:
Actuarial cost method
Asset valuation method
Inflation

Entry age normal cost method
1

Projected salary increases

Market value of asset.
2.30%
Varies by entry age and service

6.80%, net of investment and administrative expenses
Investment rate of return 2
Retirement age and mortality The probabilities of mortality are based on the 2021 CalPERS Experience Study and
Review of Actuarial Assumptions. Mortality rates incorporate full generational mortality
improvement using 80% of Scale MP-2020 published by the Society of Actuaries.
(1)

Asset valuation method prior to fiscal year ended June 30, 2022 was fixed 30-year period with a 5-year ramp up
at the beginning and a 5-year ramp down at the end of the amortization period.

(2)

Investment rate of return was 7.5% for fiscal years ended June 30, 2015-2018, 7.375% for fiscal year ended June
30, 2019, 7.25% for fiscal years ended June 30, 2020, 7.00% for fiscal years ended June 30, 2021-2023, 6.80%
starting in fiscal year ended 2024.

44

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Required Supplementary Information
Schedule of District's Proportionate Share of the Plan's Net OPEB
Liability (Asset) and Related Ratios
Last Ten Fiscal Years (1)

Fiscal
Year

District's
Proportion of
the Plan's Net
OPEB Liability

2018
2019
2020
2021
2022
2023
2024
2025

0.69%
0.68%
0.68%
0.73%
0.53%
0.55%
0.59%
0.59%

(1)

District's
Proportionate
Share of the
Plan's Net OPEB
Liability (Asset)
$

675,000
283,000
276,000
132,000
(634,314)
(64,150)
(258,680)
(299,042)

District's
Covered
Payroll
$ 1,479,996
1,457,540
1,509,569
1,639,916
1,487,426
1,530,431
1,741,313
1,876,583

District's
Proportionate
Share of the
Plan's Net OPEB
Liability (Asset)
as a Percentage
of Covered
Payroll

Plan's Fiduciary
Net Position as
a Percentage of
the Total OPEB
Liability

Measurement
Date

45.61%
19.42%
18.28%
8.05%
-42.65%
-4.19%
-14.86%
-15.94%

76.60%
91.24%
92.15%
97.15%
129.44%
102.72%
110.42%
110.88%

6/30/2017
6/30/2018
6/30/2019
6/30/2020
6/30/2021
6/30/2022
6/30/2023
6/30/2024

Fiscal year 2018 was the first year of implementation of GASB Statement No. 68, therefore only eight years are shown.

45

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Required Supplementary Information
Schedule of District's OPEB Contributions
Last Ten Fiscal Years (1)

Fiscal
Year

Actuarially
Determined
Contributions
(ADC)

Contributions
in Relation to
the ADC

Contribution
Deficiency
(Excess)

2018

$

$

$

175,000

175,000

$

Contribution as
a Percentage of
Covered Payroll

1,457,540

12.01%

2019

219,000

219,000

-

1,509,569

14.51%

2020

145,000

145,000

-

1,639,916

8.84%

2021

160,000

160,000

-

1,487,426

10.76%

2022

58,294

58,294

-

1,530,431

3.81%

2023

52,062

52,062

-

1,741,313

2.99%

2024

131,320

131,320

-

1,876,583

7.00%

2025

76,379

76,379

-

2,079,691

3.67%

Notes to schedule:
Valuation date for setting the ADC

-

Covered
Payroll

June 30, 2024

Methods and assumptions used to determine contribution rates:
Actuarial cost method

Entry Age Normal

Amortization method

Level percentage of payroll

Amortization period

13 years

Asset valuation method

The actuarial value of assets changed to the market value of
assets.

Inflation (2)
Healthcare cost trend rates

2.30%

Salary increases

2.80%

Investment rate of return
Mortality improvement

(3)

6.80% for 2025, gradually decreasing over several decades to
an ultimate rate of 4.04% in 2076 and later years.
7.25% net of OPEB plan investment expense, including inflation.
Based on assumptions for Public Agency Miscellaneous and
Police members published in the 2021 CalPERS Experience
Study. These tables include generational mortality
improvement using 80% of scale MP-2020.

(1)

Fiscal year 2018 was the first year of implementation of GASB 75; therefore, only eight years are shown.

(2)

In fiscal year ended 2025 the inflation rate decreased to 2.30% from 2.50% in fiscal year ended 2023. In fiscal year ended
2023 the inflation rate increased to 2.50% from 2.25% in fiscal year ended 2022. In fiscal year ended 2022, the inflation rate
decreased to 2.25% from 2.5% in fiscal year ended 2021. In fiscal year ended 2019, the inflation rate decreased to 2.50%
from 2.75% in fiscal year ended 2018.

(3)

In fiscal year ended 2024 the investment rate increased to 7.25% from 6.80 % in fiscal year ended 2023. In fiscal year
2023, the investment rate of return decreased to 6.8% from 7.0% in fiscal year 2022. In fiscal year 2019, the investment
rate of return increased to 7.0% from 6.5% in fiscal year 2018.

46

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Required Supplementary Information
For the Two Fiscal Years Ended June 30, 2025
Note 1 – Budgets and Budgetary Accounting
Formal budgetary accounting is employed by the District as a management control for the General Fund.
The Board of Directors adopts an annual budget each fiscal year. The budget is adopted on a basis
consistent with accounting principles generally accepted in the United States of America. Budgetary control
is exercised at the total current expenditure and total capital outlay expenditure level. All amendments to
the budget are reflected in the financial statements and require the approval of the Board of Directors. All
unencumbered annual appropriations lapse at the end of each fiscal year.
Note 2 – Reconciliation of Budget to Actual Schedules to Statement of Revenues, Expenditures
and Changes in Fund Balance

Fiscal Year
Total revenues
Total expenditures
Net change in fund balance

2025

2024

Total

$ 10,438,078

$ 17,314,944

$ 27,753,022

(13,535,015)

(14,602,508)

(28,137,523)

2,712,436

(384,501)

$ (3,096,937)

$

Fund balance, July 1, 2023, as previously presented

17,144,608

Restatement for error correction

(1,113,967)

Fund balance, July 1, 2023, as stated

16,030,641

Fund balance, June 30, 2025

$ 15,646,140

47

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Single Audit Section

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INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors
Placer County Air Pollution Control District
Auburn, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States, the financial statements of the governmental activities and general fund
of Placer County Air Pollution Control District (the District), as of and for the two fiscal years ended June 30, 2025,
and the related notes to the financial statements, which collectively comprise the District’s basic financial
statements, and have issued our report thereon dated March 25, 2026.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s internal control over
financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an
opinion on the effectiveness of the District’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements
will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We
identified a deficiency in internal control, described in the accompanying schedule of findings and responses as
item 2025-001 that we consider to be a material weakness.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free from material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit, and
accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance
or other matters that are required to be reported under Government Auditing Standards.

51

LSLCPAS.COM

To the Board of Directors
Placer County Air Pollution Control District
Auburn, California
Placer County Air Pollution Control District’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the District’s response to the
findings identified in our audit and described in the accompanying schedule of findings and responses. The District’s
response was not subjected to the other auditing procedures applied in the audit of the financial statements and,
accordingly, we express no opinion on the response.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards
in considering the District’s internal control and compliance. Accordingly, this communication is not suitable for any
other purpose.

Sacramento, California
March 25, 2026

52

INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR FEDRAL PROGRAM
AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Board of Directors
Placer County Air Pollution Control District
Auburn, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the Placer County Air Pollution Control District’s (the District) compliance with the types of
compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct
and material effect on each of the District’s major federal programs for the two fiscal years ended June 30, 2025.
The District’s major federal programs are identified in the summary of auditors’ results section of the accompanying
schedule of findings and questioned costs.
In our opinion, the District complied, in all material respects, with the types of compliance requirements referred to
above that could have a direct and material effect on each of its major federal programs for the two fiscal years
ended June 30, 2025.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United
States of America; the standards applicable to financial audits contained in Government Auditing Standards issued
by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further
described in the Auditors’ Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with
relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does
not provide a legal determination of the District’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws,
statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the District’s federal
programs.

53

LSLCPAS.COM

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

Exercise professional judgment and maintain professional skepticism throughout the audit.



Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and
perform audit procedures responsive to those risks. Such procedures include examining, on a test basis,
evidence regarding the District’s compliance with the compliance requirements referred to above and
performing such other procedures as we considered necessary in the circumstances.



Obtain an understanding of the District’s internal control over compliance relevant to the audit in order to
design audit procedures that are appropriate in the circumstances and to test and report on internal control
over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion
on the effectiveness of the District’s internal control over compliance. Accordingly, no such opinion is
expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over
compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis.
A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal
control over compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal
control over compliance with a type of compliance requirement of a federal program that is less severe than a
material weakness in internal control over compliance, yet important enough to merit attention by those charged
with governance.

54

To the Board of Directors
Placer County Air Pollution Control District
Auburn, California
Our consideration of internal control over compliance was for the limited purpose described in the Auditors’
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in
internal control over compliance that might be material weaknesses or significant deficiencies in internal control
over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or
significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal
control over compliance and the results of that testing based on the requirements of the Uniform Guidance.
Accordingly, this report is not suitable for any other purpose.

Sacramento, California
March 25, 2026

55

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Schedule of Expenditures of Federal Awards
For the Two Fiscal Years Ended June 30, 2025

Federal Grantor/Pass-Through Grantor/Program Title

Federal
Assistance
Listing
Number

Pass-through
Entity
Identification
Number

Federal
Expenditures

$

U.S. Environmental Protection Agency
Passed through California Air Pollution Control Officers Association
Air Pollution Control Program Support

66.001

TL7JVMBJMA48

157,073

Surveys, Studies, Research, Investigations,
Demonstrations, and Special Purpose Activities
Relating to the Clean Air Act

66.034

TL7JVMBJMA48

141,556

D95DUST1M9Q5

2,726,268

Passed through Sacramento Metropolitan Air Quality Management District
Targeted Airshed Grant Program

66.956

Total

$

See accompanying Notes to the Schedule of Expenditures of Federal Awards.

56

3,024,897

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Schedule of Expenditures of Federal Awards
For the Two Fiscal Years Ended June 30, 2025
Note 1 – Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal activity of
the Placer County Air Pollution Control District (District) under programs of the federal government for the
two fiscal years ended June 30, 2025. The information in this Schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule
presents only a selected portion of the operations of the District, it is not intended to and does not present
the financial position and changes in net position of the District.
Note 2 – Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting for
governmental funds. Such expenditures are recognized following the cost principles contained in the
Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
Note 3 – Relation to Basic Financial Statements
Federal award revenues are reported principally in the District’s financial statements as program revenues
in the governmental activities.
Note 4 – Assistance Listing Number (ALN)
The Assistance Listing Numbers included in this report were determined based on the program name,
review of grant or contract information and the Office of Management and Budget’s Catalog of Federal
Domestic Assistance.
Note 5 – Pass-Through Entity’s Identifying Number
When federal awards were received from a pass-through entity, the Schedule shows, if available, the
identifying number assigned by the pass-through entity. When no identifying number is shown, the District
has determined that no identifying number is assigned for the program, or the District was unable to obtain
an identifying number from the pass-through entity.
Note 6 – Indirect Cost Rate
The District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform
Guidance.

57

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Notes to the Schedule of Expenditures of Federal Awards
For the Two Fiscal Years Ended June 30, 2025
Note 7 – Reconciliation to the Schedule of Expenditures of Federal Awards
The following table summarizes the expenditures of federal awards for each fiscal year with the total
agreeing to the Schedule:

Fiscal Year
Program Title

ALN

2025
$

66.001

Surveys, Studies, Research, Investigations,
Demonstrations, and Special Purpose
Activities Relating to the Clean Air Act

66.034

133,556

8,000

141,556

Targeted Airshed Grant Program

66.956

405,405

2,320,863

2,726,268

$

58

615,243

$

$

80,791

Total

Air Pollution Control Program Support

Total

76,282

2024

2,409,654

$

$

157,073

3,024,897

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Schedule of Findings and Questioned Costs
For the Two Fiscal Years Ended June 30, 2025
I.

Summary of Auditors’ Results
Financial Statements
1. Type of auditors' report issued:

Unmodified Opinion

2. Internal control over financial reporting:
•

Material weaknesses identified?

Yes

•

Significant deficiencies identified?

None Reported

3. Noncompliance material to financial statements noted?

No

Federal Awards
1. Internal control over major federal programs:
•

Material weaknesses identified?

No

•

Significant deficiencies identified?

None Reported

2. Type of auditors' report issued on compliance
for major federal programs:

Unmodified Opinion

3. Any audit findings disclosed that are required
to be reported in accordance with 2 CFR 200.516(a)?

No

Identification of Major Federal Programs
Assistance Listing Number

Name of Federal Program or Cluster

66.956

Targeted Airshed Grant Program

Dollar threshold used to distinguish
between Type A and Type B programs:

$750,000

Auditee qualified as low-risk auditee?

No

59

PLACER COUNTY AIR POLLUTION CONTROL DISTRICT
Schedule of Findings and Questioned Costs
For the Two Fiscal Years Ended June 30, 2025
II.

Financial Statement Findings
Reference Number
2025-001 - Restatement of Net Position and Fund Balance
Type of Finding
Material Weakness in Internal Control Over Financial Reporting
Condition
Prior to the commencement of the audit, District personnel identified an error related to the
recording of advanced State grants for Moyer, MCAP, and FARMER in the prior periods. The District
corrected this error, which resulted in a restatement of beginning net position and fund balance as
of June 30, 2025.
Criteria
Governmental Accounting Standards Board (GASB) Statement No. 33, Accounting and Financial
Reporting for Nonexchange Transactions, requires that revenue from expenditure-driven grants be
recognized in the period when qualifying expenditures are incurred and measurable. Effective
internal controls should ensure that advance grant revenues received, eligible expenditures
incurred and related unearned revenue be reconciled and reviewed as part of the year-end close
process. In this instance, management identified the adjustment internally and consulted with
external auditors to obtain concurrence of the proper accounting treatment and to determine
required disclosures and presentation.
Cause of Condition
The District receives most of its State grants in advance and in the past recognized the total
advanced amount as revenue upon receipt based on the understanding that the grant funds were
discretionary. During the audit period, the District reevaluated these advanced State grants and
determined that these grants should be categorized as government-mandated nonexchange
transactions as defined by GASB Statement No. 33, and that the District should recognize revenue
when eligibility requirements are met.
Effect or Potential Effect of Condition
An adjustment of $1,113,967 was recorded to unearned revenue and the beginning net position
and fund balance in the District’s financial statements as of June 30, 2025.
Recommendation
We recommend the District thoroughly review all applicable grant eligibility requirements for proper
revenue recognition to ensure that expenditures, revenue, and unearned revenue are recorded in
the correct fiscal year.
Management’s Response
The District concurs with the finding and has already revised our internal procedures and processes
to properly evaluate and record grant revenues and the related unearned revenue. The District has
already implemented a process to only recognize revenue when all eligibility requirements have
been fully met as outlined in GASB Statement No. 33.

III.

Federal Award Findings and Questioned Costs
Our audit did not disclose any matters required to be reported in accordance with 2 CFR
200.516(a).

60