THE 2026-27 GRAND JURY REPORT paints a clear picture of what ails the City of Loyalton. It describes the City and County of Sierra’s relationship as “strained,” and how past costly management decisions have negatively affected desirable interagency partnerships.
According to the report, “The city’s budget floats just over $1 million dollars a year, compared to the $67 million that Sierra County uses to operate.”
It points out, “There are few revenue sources that the city can tap into with such a small population.
“Because of this, the city relies on grants or low interest loans to obtain funding for improvements throughout the city. The city’s small budget does not allow for the addition of key staff, nor does it allow for competitive compensation and benefits that similar positions in the county and surrounding area afford. Full time employees are not offered health benefits, PERS retirement or paid time off.
“An unstable water supply’s biggest impact is to the 406 users that the city serves. Besides the residents and businesses that make up these users, the Sierra-Plumas Joint School District has 369 students that attend school inside the City of Loyalton, along with the District Office. The number represents an astonishing 89% of students in the school district. Sierra County occupies many offices in Loyalton as well, including Health and Human Services, Probation Office, Behavioral Health Advisory Board, Office of Education, and Social Services. In addition to these offices, Eastern Plumas Health Care maintains the Loyalton Medical Clinic, the ALS Ambulance station, and the Skilled Nursing Care Facility that houses 35 patients.
“These services that are provided in Loyalton are vital to the health, safety and well-being of the residents of Sierra and adjacent Plumas Counties.”
On Disincorporation, the report states, “disincorporation is a complicated process, pointing out the need to meet with the county, hold a special election, meet with LAFCO, form a water and sewer district, and consider the pensions of previous employees. It is noted that after consulting our own legal counsel, that the price of disincorporation could reach 1 million dollars and can take a year or more to complete.
“Disincorporation would also mean that the City of Loyalton would lose its ability to obtain and remain eligible for grants, including the current grant that the city is utilizing for water infrastructure projects. It would also lose eligibility for law enforcement funding, meaning the county would lose out on roughly $100,000 of revenue a year.”
Loyalton’s roads are well covered: “The total budget for the town is $1.2 million, with roads receiving a budget nearing $33,000...... The roads budget within the City of Loyalton is extremely small, and not adequate for the extensive repairs that the city’s streets need.”
Recommendations require the County and City work together: “The Sierra County Director of Public Works and The City of Loyalton develop and deploy a user friendly, effective citizen complaint policy;
“Sierra County Director of Public Works shall adopt and enact formal snow removal training for snow removal equipment operators;
“Sierra County and City of Loyalton develop and implement a plan to address the maintenance of neglected road intersection safety ‘STOP’ and other markings;
“work collaboratively to formalize that road safety issues receive the highest priority above and before optional projects and expansions.;
“The Sierra County Director of Public Works develop a map to display to the public that clearly shows which roads are county roads, state highways and private roads to improve public communication about road responsibility by the end of November 2026;
“The Sierra County Director of Public Works shall develop a written document that explains how road maintenance is prioritized, to help residents understand why some roads are fixed before others by the end of 2026.”
According to the report, “The city’s budget floats just over $1 million dollars a year, compared to the $67 million that Sierra County uses to operate.”
It points out, “There are few revenue sources that the city can tap into with such a small population.
“Because of this, the city relies on grants or low interest loans to obtain funding for improvements throughout the city. The city’s small budget does not allow for the addition of key staff, nor does it allow for competitive compensation and benefits that similar positions in the county and surrounding area afford. Full time employees are not offered health benefits, PERS retirement or paid time off.
“An unstable water supply’s biggest impact is to the 406 users that the city serves. Besides the residents and businesses that make up these users, the Sierra-Plumas Joint School District has 369 students that attend school inside the City of Loyalton, along with the District Office. The number represents an astonishing 89% of students in the school district. Sierra County occupies many offices in Loyalton as well, including Health and Human Services, Probation Office, Behavioral Health Advisory Board, Office of Education, and Social Services. In addition to these offices, Eastern Plumas Health Care maintains the Loyalton Medical Clinic, the ALS Ambulance station, and the Skilled Nursing Care Facility that houses 35 patients.
“These services that are provided in Loyalton are vital to the health, safety and well-being of the residents of Sierra and adjacent Plumas Counties.”
On Disincorporation, the report states, “disincorporation is a complicated process, pointing out the need to meet with the county, hold a special election, meet with LAFCO, form a water and sewer district, and consider the pensions of previous employees. It is noted that after consulting our own legal counsel, that the price of disincorporation could reach 1 million dollars and can take a year or more to complete.
“Disincorporation would also mean that the City of Loyalton would lose its ability to obtain and remain eligible for grants, including the current grant that the city is utilizing for water infrastructure projects. It would also lose eligibility for law enforcement funding, meaning the county would lose out on roughly $100,000 of revenue a year.”
Loyalton’s roads are well covered: “The total budget for the town is $1.2 million, with roads receiving a budget nearing $33,000...... The roads budget within the City of Loyalton is extremely small, and not adequate for the extensive repairs that the city’s streets need.”
Recommendations require the County and City work together: “The Sierra County Director of Public Works and The City of Loyalton develop and deploy a user friendly, effective citizen complaint policy;
“Sierra County Director of Public Works shall adopt and enact formal snow removal training for snow removal equipment operators;
“Sierra County and City of Loyalton develop and implement a plan to address the maintenance of neglected road intersection safety ‘STOP’ and other markings;
“work collaboratively to formalize that road safety issues receive the highest priority above and before optional projects and expansions.;
“The Sierra County Director of Public Works develop a map to display to the public that clearly shows which roads are county roads, state highways and private roads to improve public communication about road responsibility by the end of November 2026;
“The Sierra County Director of Public Works shall develop a written document that explains how road maintenance is prioritized, to help residents understand why some roads are fixed before others by the end of 2026.”
