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HomeMy WebLinkAbout2016-12-19 e-packet@2:00Monday, December 19, 2016 2:00 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Hall Annex, Conference Room 315 Maple Avenue, South San Francisco, CA Budget Standing Committee of the City Council Special Meeting Agenda December 19, 2016Budget Standing Committee of the City Council Special Meeting Agenda NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, the Budget Subcommittee of the City of South San Francisco will hold a Special Meeting on Monday, December 19, 2016 at 2:00 p.m., at City Hall Annex, Conference Room, 315 Maple Avenue, South San Francisco, California 94080. Call To Order. Roll Call. Public Comments. MATTERS FOR CONSIDERATION Motion to Approve the Minutes of the meeting of September 12, 2016.1. Report transmitting draft Comprehensive Annual Financial Report for Fiscal Year 2015-16 to the Budget Standing Committee of the City Council. (Richard Lee, Director of Finance) 2. Adjournment. Page 2 City of South San Francisco Printed on 12/19/2016 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:16-1010 Agenda Date:12/19/2016 Version:1 Item #:1. Motion to Approve the Minutes of the meeting of September 12, 2016. City of South San Francisco Printed on 12/15/2016Page 1 of 1 powered by Legistar™ City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:16-1001 Agenda Date:12/19/2016 Version:1 Item #:2. Report transmitting draft Comprehensive Annual Financial Report for Fiscal Year 2015-16 to the Budget Standing Committee of the City Council.(Richard Lee, Director of Finance) RECOMMENDATION No formal action is required. The attached reports are solely for information purposes. BACKGROUND/DISCUSSION The Comprehensive Annual Financial Report (CAFR)is a required document that conveys the City of South San Francisco’s financial condition.A CAFR is issued at the end of every fiscal year,which begins July 1st and ends June 30th. Draft copies of the following primary sections of the CAFR are attached for the Budget Subcommittee’s information: ·Management Discussion and Analysis; ·Basic Financial Statements; ·Notes to Basic Financial Statements; ·Supplementary Information; and ·Statistical Section. The CAFR will be finalized and sent to the Government Finance Officers Association (GFOA)by December 31,2016,to be considered for their Certificate of Achievement for Excellence in Financial Reporting.The City has received the award for the past 14 consecutive years,and is the hallmark award for public sector financial reporting. The FY 2015-16 CAFR will be formally presented to the City Council in early 2017 for acceptance. Overall,the health of the local economy was manifest through the City’s additional primary revenues:property tax;transient occupancy tax;and permit revenues.The City recorded year-over-year increases in developer impact fee revenues (East of 101 Traffic Impact Fee,East of 101 Sewer Impact,Child Care Impact Fee,etc.) resulting from a robust and accelerated development climate in South San Francisco. CONCLUSION The FY 2015-16 CAFR fairly presents,in all material respects,the City’s respective financial position.The City’s finances reflect continued prudent policy direction from the City Council. Attachments: 1.FY 2015-16 Draft Comprehensive Annual Financial Report 2.FY 2015-16 Draft Management Discussion and Analysis 3.FY 2015-16 Statistical Section City of South San Francisco Printed on 12/15/2016Page 1 of 1 powered by Legistar™ CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 18 Government Accounting Standards Board Statement 34 (GASB 34) requires the City of South San Francisco to provide an overview of its financial activities for the fiscal year. Please read this in conjunction with the accompanying Transmittal Letter and Basic Financial Statements. FISCAL 2015-16 FINANCIAL HIGHLIGHTS Summary: The General Fund ended FY 2015-16 with a surplus of $1.7 million, which included a transfer of $4.0 million to the PERS Stabilization Reserve, which was created to mitigate the negative financial impact of volatility with the California Public Employees’ Retirement System (CalPERS). General Fund reserves were fully funded in accordance with the City’s Reserves Policy, which follows the Government Finance Officers’ Association (GFOA) best practice of 15-20% of operating revenues. General Fund revenues (excluding operating transfers in) increased $7.3 million compared to the prior year. The primary drivers of the year-over-year increase were property tax, sales tax and permit revenues. The principal sources of additional property taxes were secured property taxes and the City’s share of property taxes from the former redevelopment agency, demonstrating the strength of the City’s property tax roll. The increase in sales tax reflected the final Triple Flip payment from the State and the passage and implementation of Measure W, a 0.5% transactions and use tax. Increases in permit revenues were indicative of major developments in the City’s East of 101 area. City-wide financial highlights of the year include the following: • Total Net Position for Governmental Activities in FY 2015-16 increased $18.0 million, from $145.4 million to $163.4 million. The increase was primarily attributed to increases in cash and investments, evident in the City’s impact fees driven by the accelerated development climate. • Primary Government deferred inflow of resources decreased $10.9 million, from $23.4 million to $12.5 million. The change in net difference between projected and actual earnings on plan investments related to pension was the paramount factor in the decrease. In the prior fiscal year, which was the first year of GASB 68 implementation, the entire $23.4 million in primary government deferred inflow of resources was attributed to the net difference between projected and actual earnings on plan investments. In FY 2015-16, as illustrated in the Statement of Net Position and Note 7 – Pension Plan, the primary government deferred inflow of resources of $12.5 million is attributed to changes in assumptions ($5.4 million), differences between actual and expected experience ($4.0 million), and the net differences between projected and actual earnings on plan investments ($3.1 million). • While Expenses for Governmental Activities were relatively flat compared to the prior year, revenues from Charges for Services increased from $24.1 million to $30.1 million, which CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 19 reflected the magnitude and velocity of developments that were issued permits in FY 2015- 16. • Business-type program expenses decreased by $5.3 million in FY 2015-16, most notably in the Sewer Fund. The year-over-year decrease was due to a significant amount of capital expense that was offset into construction in progress in FY 2015-16. • Property tax revenues, excluding those from the former Redevelopment Agency (RDA), increased $948 thousand, or 5.2 percent compared to the prior year. The increase was indicative of the City’s robust secured property tax base. • Property taxes from the former RDA increased $750 thousand, or 15.5 percent. As the Successor Agency pays down the obligations of the former RDA, the proportional share of property taxes to the taxing entities increases. • Sales tax revenues increased by $2.4 million, or 15.9 percent over the prior fiscal year. which In November 2015, South San Francisco residents approved Measure W, a 0.5% transactions and use tax. The transactions and use tax was implemented on April 1, 2016, and the City received $1.5 million in revenues, comprised of advances from the State Board of Equalization for the fourth quarter of FY 2015-16. • Permit revenues for all Governmental Funds increased $2.1 million, or 43.8 percent over the prior fiscal year, indicative of the current development climate in South San Francisco and the greater San Francisco Bay Area. The East of 101 area, in particular, had a number of high value developments enter the plan submission and review phase at an accelerated pace. • In FY 2015-16, the City received $13.4 million in Transient Occupancy Tax (TOT) revenues. This was the third consecutive year of record-breaking TOT revenues, which was $495 thousand more than the prior year. Sustained robust TOT revenues were driven by high room rates and occupancy rates. OVERVIEW OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT This Comprehensive Annual Financial Report is in six parts: 1) The Introductory Section, which includes the Transmittal Letter and general information; 2) Management’s Discussion and Analysis (this part); 3) The Basic Financial Statements, which include the Government-wide and the Fund Financial Statements, along with the notes accompanying these statements; 4) Required Supplementary Information and the accompanying notes; CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 20 5) Other Supplementary Information including combining statements for non-major governmental funds, internal service funds, other budgetary information, and a fiduciary statement of changes in assets and liabilities; and 6) The Statistical Section. Basic Financial Statements The Basic Financial Statements are comprised of the City-wide Financial Statements and the Fund Financial Statements. These two sets of financial statements provide two different views of the City’s financial activities and financial position. The City-wide Financial Statements provide a longer-term view of the City’s activities as a whole, and consist of the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information about the financial position of the City as a whole, including all its capital assets and long-term liabilities on the full accrual basis, similar to the basis used by corporations. The Statement of Activities provides information about all the City’s revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses of each the City’s programs. The Statement of Activities provides a detailed explanation of the change in Net Assets for the year. All the amounts in the Statement of Net Position and the Statement of Activities are separated into Governmental Activities and Business-type Activities in order to provide a summary of these two activities of the City as a whole. The Fund Financial Statements report the City’s operations in more detail than the government- wide statements and focus primarily on the short-term activities of the City’s General Fund and other Major Funds. The Fund Financial Statements measure only current revenues, expenditures and fund balances; they exclude capital assets, long-term debt and other long-term amounts. Major Funds account for the major financial activities of the City and are presented individually, while the activities of Non-major funds are presented in summary, with subordinate schedules presenting the detail for each of these other funds. Major Funds are explained below. The fiduciary statements provide financial information about the activities of Non-Obligated Assessment Districts, for which the City acts solely as agent. Note 1 to the Basic Financial Statements provides a summary of the City’s significant accounting policies, fund categories, and fund types. City-wide Financial Statements The Statement of Net Position and the Statement of Activities present information about the following: CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 21 • Governmental activities - All of the City’s basic services are considered to be governmental activities, including general government, fire, police, public works, parks and recreation, library, and economic and community development. These services are supported by general City revenues such as taxes, and by specific program revenues from grants, contributions, and fees. The City’s governmental activities also include the City of South San Francisco Capital Improvements Financing Authority, as the City Council also governs this entity. • Business-type activities - All the City’s enterprise activities are reported here, including wastewater treatment, parking, and storm water management. Unlike governmental services, user fees fully support most of these services. • Component Unit - The City of South San Francisco Conference Center Authority comprises the component unit. The Authority serves the City and other interests and it has a governing body separate from the City Council. Citywide financial statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole. Fund Financial Statements The Fund Financial Statements provide detailed information about each of the City’s most significant funds, called Major Funds. The concept of major funds, and the determination of which are major funds, was established by GASB Statement 34 and replaces the concept of combining like funds and presenting them in total. Instead, each Major Fund is presented individually, with all Non-major Funds summarized and presented only in a single column. Subordinate schedules present the detail of these Non-major funds. Major Funds present the major activities of the City for the year, and may change from year to year as a result of changes in the pattern of City’s activities. Fund Financial Statements include governmental, enterprise and internal service funds as discussed below. Governmental Fund Financial Statements are prepared on the modified accrual basis, which mean they measure only current financial resources and uses. Capital assets and other long-lived assets, along with long-term liabilities, are not presented in the Governmental Fund Financial Statements. Enterprise and Internal Service Fund financial statements are prepared on the full accrual basis, as in the past, and include all their assets and liabilities, current and long-term. Since the City’s Internal Service Funds provide goods and services only to the City’s governmental and business-type activities, their activities are reported only in total at the Fund level. Internal Service Funds may not be Major Funds because their revenues are derived from other City Funds. These revenues are eliminated in the citywide financial statements and any CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 22 related profits or losses are returned to the activities, which created them, along with any residual net assets of the Internal Service Funds. Comparisons of Budget and Actual financial information are required in the Basic Financial Statements only for the General Fund and other Major Funds that are Special Revenue Funds. Fiduciary Statements The City is the agent for certain assessment districts, holding amounts collected from property owners which await transfer to these Districts’ bond trustees. The City’s fiduciary activities are reported in the separate Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position. These activities are excluded from the City’s other financial statements because the City cannot use these assets to finance its own operations. FINANCIAL ACTIVITIES OF THE CITY AS A WHOLE This analysis focuses on net position and changes in net position of the City’s Governmental Activities (Table and Charts 1 through 3) and Business-type Activities (Tables 4 and 5) presented in the City-wide Statement of Net Position and Statement of Activities. A comparative analysis is presented for fiscal years 2014-15 and 2013-14. Governmental Activities Governmental Net Position Table 1 Governmental Net Position at June 30 (In Millions) CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 23 The total net position for Governmental Activities increased by $18.0 million in FY 2015-16 compared to the prior year. Cash and investments was a primary categorical driver for the increase, representing an increase of $9.1 million in assets, which was attributable to the breadth and magnitude of major developments via permit revenues and developer impact fees. Total deferred inflow of resources related to pension was reduced by $9.8 million. FY 2014-15 marked the first year of GASB 68 implementation, where the net differences between projected and actual earnings on plan investments represented the entire deferred inflows related to pension. In FY 2015-16, the deferred inflows related to pension was allocated to changes in assumptions ($2.0 million), Differences between actual and expected experience ($940 thousand) and net differences between projected and actual earnings on plan investments ($1.4 million). Table 2 Expense and Program Revenue Comparison in Governmental Activities (In Millions) 2016 2015 Cash and investments 99.3$ 90.2$ Other assets 12.9 9.5 Capital assets 233.4 233.3 Total assets 345.6 333.0 Total outflows related to pension 12.6 10.3 Total outflow of resources 12.6 10.3 Long-term debt outstanding 12.4 13.6 Other liabilities 171.1 163.2 Total liabilities 183.5 176.8 Deferred inflows related to pension 11.2 21.0 Total deferred inflow of resources 11.2 21.0 Net position: Invested in capital assets, net of debt 231.1 230.5 Restricted 52.4 49.3 Unrestricted (120.1) (134.4) Total net position 163.4$ 145.4$ CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 24 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 25 Governmental program revenues (Table 2) increased by $6.3 million compared to the prior year, largely due an increase in charges for services, representative of development velocity and magnitude via the increase trend in permit fees and developer impact fees. Chart 1 Revenues by Source - Governmental Activities 2015-16 Within Governmental Activity revenue sources, as shown in Chart 1, Charges for Services increased from 24% to 27%, indicative of the development climate in South San Francisco, where a number of high value projects entered the permit issuance phase in FY 2015-16. Tables 2 (above) and 3 (below) illustrate the difference between program revenues and expenses. Program revenues consist of capital and operating grants and contributions and fees for services. General City revenues, such as property taxes, sales and transient occupancy taxes, motor vehicle in-lieu taxes, and investment earnings, cover the shortfall between program revenues and program expenses. In FY 2015-16, the net expense for governmental activities decreased from $61.1 million to $54.7 million. The reduction was principally noted in the Public Works Department, reflecting the impact of major developments in the East of 101 area entering the permit issuance phase, bringing an influx of permit fees and developer impact fees. Property taxes 24% Sales taxes 14% Transient occupancy taxes 12% Other taxes 5% Property Taxes in lieu 5% Interest and Rentals 1% Franchise Fee 4% Miscellaneous 2%Charges for Services 27% Operating Grants and Contributions 5% Capital Grants and Contributions 1% CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 26 Table 3 Net (Expense) Revenue from Services Governmental Activities (In Millions) 2015-16 2014-15 General government (4.8)$ (4.1)$ Fire department (19.0) (18.5) Police department (20.2) (20.2) Public works department 1.9 (6.4) Recreation and community services (8.3) (7.8) Library (3.1) (3.6) Economic and community development (1.1) (0.4) Interest on long-term debt Total (54.6)$ (61.0)$ CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 27 Business-type Activities Table 4 Business-type Net Position at June 30 (in Millions) The total net position for business-type activities increased by $7.3 million, or 8.8 percent, primarily due to a reduction in outstanding long-term liabilities, notably the City’s debt service payments on three State Water Resources loans and one sewer revenue bond. 2016 2015 Cash and Investments 20.1$ 18.9$ Other assets 0.7 0.6 Capital assets 127.2 126.3 Total assets 148.0 145.8 Deferred outflows related to pension 1.4 1.1 Total Deferred outflow of resources 1.4 1.1 Long-term liabilities outstanding 38.7 43.2 Other liabilities 19.2 18.6 Total liabilities 57.9 61.8 Deferred inflows related to pension 1.2 2.3 Total deferred inflow of resources 1.2 2.3 Net position: Investment in capital assets 83.9 78.6 Restricted - - Unrestricted 6.2 4.2 Total net position 90.1$ 82.8$ CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 28 Table 5 Change in Business-type Net Position (In Millions) Business activity expenses decreased $5.3 million compared to the prior year, particularly in Sewer Enterprise activities, due to $4.8 million in capital expense in FY 2015-16 that was offset into construction in progress. Business activity revenues slightly decreased by $0.7 million, primarily due to the impact of a rate increase offset by a reduction in contributions from participating agencies. FINANCIAL ANALYSIS OF THE CITY’S FUNDS Governmental Funds Governmental funds highlight the City’s near-term inflows, outflows, and balances of spendable resources. Such information can be helpful in determining the City’s financial status. Unrestricted fund balance is a major indicator of designated and uncommitted resources available for spending in future fiscal years. At June 30, 2016, the City’s governmental funds reported combined fund balances of $76.3 million, an increase of $5.5 million, or 7.7 percent compared to the prior year. The General Fund ending fund balance was $23.0 million, reflecting an increase of $1.7 million, or 8.2 2015-16 2014-15 Expenses Sewer Enterprise 18.3$ 24.0$ Parking District 0.8 0.5 Storm Water 1.3 1.2 Total expenses 20.4 25.7 Revenues Program Revenues Charges for Services 20.8 21.0 Operating grants and contributions 5.8 6.2 Total program revenues 26.6 27.3 General revenues Investment earnings 0.3 0.1 Total general revenues 0.3 0.1 Excess (deficiency) before transfers 6.5 1.7 Transfers 0.9 1.4 Change in net position 7.4 3.1 Net position - beginning (as adjusted)82.8 79.7 Net position - ending 90.2$ 82.8$ CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 29 percent. The City’s Reserves Policy follows the GFOA-recommended threshold (20% of operating revenues). As such, additional revenues from the passage and implementation of Measure W, a 0.5 percent transactions and use tax, increased the reserves requirement. Total governmental fund revenues increased by $9.4 million, from $101.0 million to $110.3 million, primarily attributable to a vibrant local economy, evident through permit revenues and transient occupancy tax. Total governmental fund expenditures increased by $9.0 million, from $90.8 million to $99.8 million, or 10.0 percent. Within FY 2015-16, the City completed its labor negotiations process, which included a number of classification and compensation studies, cost of living adjustments and other incentives for labor units. In addition, as a result of increases in the employer pension contribution rate increases from CalPERS, the City paid $2.5 million more than the prior year for employee pension benefits. The City Council authorized transfer of $4.0 million from the General Fund to the City’s Benefits Fund to mitigate the impact of CalPERS’ volatility with respect to its return on investment. Comparison of Final Budgets to Original Adopted Budget The budget is initially adopted by the City Council in June, based on revenue projections that are up to date through May. Between May and the end of the fiscal year, there can be major fluctuations in revenues depending on the economy and/or actions by the State of California. There can also be significant changes to departmental expenditure budgets to the extent unforeseen expenses occur. In the Fund Financial Statements, the page titled “Statement of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual” later in this document shows the initial adopted and final budgets for the General Fund. Significant changes between the adopted and final budgets are described below: CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 30 Table 6 Comparison of Final Budgets to Original Adopted Budget (in Thousands) Original Final Pct Discussion: Revenues Budget Budget Change Change (Items of more than 5% and $100,000 variance) Property taxes 24,314$ 24,314$ -$ Sales taxes 16,530 17,832 1,302 7.9%The budget was adjusted to account for 1. Final Triple Flip payment from the State. Transient occupancy taxes 12,000 13,430 1,430 11.9% The budget increase reflects the City's third consecutive record for Transient Occupancy Tax revenues, driven by sustained higher occupancy and room rates. Other taxes 4,385 4,385 - Franchise Fee 3,344 3,344 - Intergovernmental 6,370 7,702 1,332 20.9% The majority of the budget adjustments reflected reimbursements from the California Office of Emergency Servies (Cal OES) for the Fire Department's response to mutual aid. In addition, the City received grant funds from the California Office of Traffic Safety (OTS) for various traffic enforcement efforts. Interest and rentals 2,932 2,932 - Licenses and permits 3,877 5,962 2,085 53.8% A number of high value building permits were issued in the fiscal year that were not contemplated during the budget development process, primarily in the East of 101 biotechnology business area. Charges for services 8,786 8,717 (69) -0.8% Fines and forfeitures 839 839 - Other 234 248 14 6.0% Total 83,611$ 89,705$ 6,094$ 7.3% CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 31 Table 6 (continued) Comparison of Final Budgets to Original Adopted Budget (in Thousands) Original Final Pct Discussion: Expenditures Budget Budget Change Change (Items of more than 5% and $100,000 variance) City Council 238$ 268$ 30$ 12.7% City Clerk 691 751 60 8.6% City Treasurer 131 131 (0) -0.1% City Attorney 783 783 0 0.1% City Manager 1,588 1,671 83 5.2%Budget amendments reflect more robust communications and community outreach efforts. Finance 2,028 2,213 185 9.1% Budget amendments include TOT/Parking Tax audit services and temporary acting pay for staff serving in a higher classification for a limited duration. Non-Departmental 1,014 1,305 291 28.8% The primary budget adjustment reflects approval of a new employee safety program. Human Resources 1,476 1,527 51 3.5% Fire 21,755 24,104 2,349 10.8% The budget increase was required to address overtime incurred due to minimum staffing needs and responding to calls for mutual aid. Police 24,959 25,357 398 1.6%The budget increase was required to address overtime incurred due to minimum staffing needs. Public Works 3,912 5,071 1,159 29.6% The additional budget reflects continuation of operation of the South City Shuttle, and site preparation services for the Civic Campus. Parks and Recreation 13,904 13,464 (440) -3.2% Library 4,607 4,769 162 3.5% Economic and Community Development 5,732 6,830 1,098 19.2% The additional budgeted reflects professional plan check services needed to support the pace and magnitude of the developments that were the primary drivers of the budget adjustment for license and permit revenues. Total 82,818$ 88,244$ 5,426$ 6.6% CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 32 Analysis of Major Governmental Funds General Fund Total General Fund revenues in FY 2015-16 were $94.6 million, $1.2 million, or 1.3 percent over the final amended budget. Total General Fund expenditures ended FY 2015-16 at 92.9 million; $4.4 million, or 4.5 percent under budget. Overall, the General Fund ended FY 2015-16 with a surplus of $1.7 million, notably for the items discussed below. Property Tax, Sales Tax and Transient Occupancy Tax (TOT), the City’s primary revenue sources, serve as a bellwether of local economic vitality, and also represented the largest year over year gains. Property Tax revenues were $1.7 million more than the prior year, principally evident in property tax from the secured roll and from the former Redevelopment Agency (RDA). Sales tax revenues increased $2.4 million in additional Sales Tax revenues were comprised of the final Triple Flip payment from the State, as well as passage and implementation of Measure W, a 0.5% transactions and use tax. For the third year in a row, Transient Occupancy Tax (TOT) revenues reached record levels at $13.4 million, $495 thousand more than the prior year. A robust and fast paced development climate led to $2.1 million more in license and permit revenues. Revenue from fines and forfeitures decreased by $430 thousand, and was the only General Fund revenue category that noted a significant year over year decline. Parking citation revenue continued to decline, with revenues nearly reduced by half compared to two years prior, reflecting the elimination of the City’s red light camera program in the prior year. General Fund expenditures increased $10.0 million, or 13.0% over the prior fiscal year. FY 2015-16 marked the completion of labor negotiations for all of the City’s labor units. The labor packages included classification and compensation studies, cost of living adjustments and other incentives that provided employees with competitive compensation. As of June 30, 2016, the General Fund total fund balance was $23.0 million, which included $3.8 million in committed reserves, $1.4 million in assigned reserves, and $17.8 million in unassigned reserves. The unassigned reserves are designated by the City Council based on the City’s Reserves Policy, which follows best practices from the Government Finance Officers’ Association (GFOA) of between 15-20 percent of General Fund operating revenue. Within the City’s unassigned reserves, the City Council designated funds for economic contingencies, potential catastrophe and budget contingencies. Other Post Employment Benefit (OPEB) Liability Impact on Fund Balance The City has a particularly rich retiree health benefit for employees hired prior to April 25, 2010 (legacy employees). Those legacy employees who retire from CalPERS and from the City concurrently with at least 5 years of service are entitled to 100% coverage of retiree medical insurance premiums paid by the City. This benefit resulted in an OPEB Unfunded Actuarial Accrued Liability of $57 million as of June 30, 2015, based the most recent external actuarial CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 33 analysis which reflects investment of $13.5 million with the California Employers’ Retiree Benefit Trust (CERBT) in February 2014. In addition, the City Council approved an appropriation of over $800 thousand ($250 thousand from the General Fund, and the remainder from enterprise funds) to be contributed to CERBT on an annual basis. City Housing Fund Up until Redevelopment Agencies were abolished in FY 2011-12 by the State of California under ABX1 26, the City set aside 20% of Redevelopment property taxes to fund the provision of new affordable housing units, as well as the operation and maintenance of housing stock that the Redevelopment Agency had already funded. That fund was formerly called the Low/Moderate Income Housing Fund. With its source of funding (20% of Redevelopment property tax dollars) abolished, the City Council voted to take on the operations of the former housing units by becoming the Successor Housing Agency, with activities funded primarily from the rental revenues received by the City for those City-owned occupied housing units. Any shortfall between the rents received and the operations and maintenance costs of those housing units are funded by either one time grants or by the General Fund. Any fund balances will be held for future housing property maintenance needs. In FY 2015-16, the City Housing Fund received for $416 thousand in revenues, which included $188 thousand in rent, and $76 thousand in interest income. The fund also had $492 thousand in expenses, the majority of which was for professional services related to an affordable housing development. Capital Improvement Fund The City consolidates and reports its governmental fund-type capital project expenditures in this fund. Resources consist of transfers from the General Fund, major and non-major funds, developer impact fees, and gasoline taxes and transportation sales taxes from non-major governmental funds. Resources also come from federal, state, and local grants, contributions from other cities, utilities and private developers. Entire capital projects are appropriated in one- year, but expended over multiple years, with unspent appropriations carried forward year-to-year until completion. East of 101 Sewer Impact Fee Fund In FY 2015-16, this fund received $551 thousand in revenues, indicative of the pace and magnitude of development in the East of 101 area, which drove fund balance to a positive $504 thousand. The fund had a negative fund balance for many years due to prepayment of impact fees by a large biotech firm to front-fund a now completed project. In 2007, the City entered into an agreement with this firm to pre-fund the sewer impact fees for the East Grand Avenue Sewer Trunk project in order for the project to be completed prior to the issuance of building permits. As a result, the pre-funding is reported as unearned revenue, a liability on the fund’s balance sheet, until sufficient development generates impact fees to cover CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 34 the prepayment of those fees, or until the City has a new agreement with the firm. As of June 30, 2016, the remaining balance of the pre-funding is nearly $2.0 million. East of 101 Traffic Impact Fee Fund In FY 2015-16, the City received $1.6 million in traffic impact fees, and transferred out $475 thousand for capital improvements. As of June 30, 2016, the fund has a balance of $7.2 million. Child Care Impact Fee Fund The City received $341 thousand in child care impact fees in FY 2015-16. Factoring in limited expenditures, this fund has a balance of $2.9 million as of June 30, 2016. Larger scale projects can be funded once a sufficient balance has been accumulated. Developer Deposit Since 2007, the City has entered into agreements with a large biotech firm to front-fund sewer and streetscape projects. The remaining balances of the pre-funding are reported as liability which will be reduced as related project expenditures are incurred. CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 35 Other Governmental Funds Presented as a group in the Basic Financial Statements, these funds are individually presented as Supplementary Information. Enterprise Funds Sewer Enterprise Fund The Sewer Enterprise fund reported operating income (before non-operating revenues and expenses transfers) of $8.0 million in FY 2015-16. Operating revenues decreased by $0.6 million, or 2.4 percent. The Water Quality Control Plant is a shared facility, with the cities of San Bruno, Millbrae and Burlingame sharing in the cost of operations and capital improvements. At $4.8 million, FY 2015-16 was closer to the historical average for cash flows out for acquisition of capital assets compared to the prior year. The City’s accounting practice dictates that capital outlay for enterprise funds are offset by a contra account and the resulting debit balance recorded to capital assets. Therefore, in comparison to the prior year, operating expenses decreased by $5.1 million or 22.8 percent. Net position increased $7.1 million to end the year at $75.0 million. Parking District Fund In FY 2015-16, revenues increased by 2.9 percent to $843 thousand, while expenses increased by $153 thousand, or 20.5 percent. The additional expenses reflected implementation of pilot program to install new parking meters that employed current technology, including payment by credit card. Net position decreased slightly by $20 thousand to $13.9 million. Storm Water Fund The Storm Water Fund is used to account for resources needed to fund storm drain and storm infrastructure operations, maintenance, capital replacement, and compliance with various federal and state regulations regarding storm water runoff. Revenues totaled $405 thousand, primarily from a levy on property owners. Transfers totaled $930 thousand, the majority of which came from the Gas Tax Fund in the amount of $670,000 and $250,000 from the General Fund. Expenses totaled $1.3 million, $1.6 million less than the amended budget, due to the trash capture devices capital project, which did not enter the construction phase in FY 2015-16 as projected. Rather, the construction contract is projected to be sent out for bid by the end of FY 2016-17. Reserves as of the fiscal year ended June 30, 2016, totaled $1.2 million. Service fee revenues remain static in this fund without a ballot measure to increase assessed fees. CAPITAL ASSETS GASB Statement 34 requires the City to add infrastructure to its reportable capital assets. Infrastructure includes streets, drainage systems, and traffic control and safety devices. Previously, governments excluded the value of such property from their reports of capital assets. CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 36 The City has successfully reported on the depreciated value of all such assets acquired or built since 1980. The City reports the depreciated book value of other types of capital assets such as buildings, land, equipment and furniture, on the City-wide Statement of Net Assets. Such information is summarized below and is more completely detailed in Note 3 to the Basic Financial Statements. The City depreciates all its capital assets, except land and construction in progress. At June 30, 2016, the City had $360.6 million in capital assets, net of depreciation, representing an increase of $1.0 million from the prior year. The increase reflects the return to a more typical capital asset addition trend within Business-type activities compared to more typical fiscal years. The City’s various capital asset types used in governmental and business-type activities, are illustrated in Table 7 below: Table 7 Capital Assets (in Millions) at June 30 CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 37 DEBT ADMINISTRATION Each of the City’s debt issuances is discussed in detail in Note 5 to the Basic Financial Statements. A summary of the City’s outstanding debt for the past two fiscal years is as follows: Table 8 Outstanding Debt (In Millions) at June 30 2016 2015 Governmental Activities: Land 47.6$ 47.6$ Buildings and improvements 85.0 85.0 Equipment and vehicles 19.8 19.6 Furniture and fixtures 1.8 1.8 Infrastructure - streets*183.1 183.1 Infrastructure - traffic control devices*5.1 5.1 Infrastructure - storm drains*8.9 8.9 Construction in progress 26.8 18.4 Less accumulated depreciation (144.7) (136.2) Totals 233.4$ 233.3$ * Additions during the fiscal year only Business-type Activities Land 1.4$ 1.4$ Buildings and improvements 66.7 66.7 Clean water facilities and transmission line 75.5 75.5 Infrastructure - storm drains 4.8 4.8 Infrastructure - streets 7.4 7.4 Equipment and vehicles 11.2 11.2 Construction in progress 12.1 7.1 Less accumulated depreciation (51.9) (47.8) Totals 127.2$ 126.3$ Total City 360.6$ 359.6$ CITY OF SOUTH SAN FRANCISCO MANAGEMENT’S DISCUSSION AND ANALYSIS Required Supplementary Information 38 The decline in Business-type Activities outstanding debt of $4.4 million is the result of scheduled repayments. The largest remaining debt obligations are the following: - Three loans to the City’s Sewer Enterprise Fund from the State Water Resources Control Board to finance the expansion of the City’s water quality control plant and pay for Wet Weather improvements which will improve environmental impacts on the Bay. Principal and interest repayments commence on the loans upon completion of the project related to each loan package. The three current loans outstanding have fixed interest of 2.6%, 2.5% and 2.4% are due in 2022, 2026 and 2028. Because of the regional benefits and equity interest in these projects, the City of San Bruno shares in the loan repayments for the first two of the three current loans. ECONOMIC OUTLOOK AND MAJOR ACCOMPLISHMENTS The economic outlook and major accomplishments of the City are discussed in the accompanying Transmittal Letter. CONTACTING THE CITY’S FINANCIAL MANAGEMENT This Comprehensive Annual Financial Report is intended to provide readers with a general overview of the City’s finances. Questions about this report or requests for additional financial information should be directed to the City of South San Francisco Finance Department, P.O. Box 711, South San Francisco, CA 94083, and phone (650) 877-8512. The City’s website is at www.ssf.net. Governmental Activities 2016 2015 Loan payable to Successor Agency 10.7$ 11.4$ Capital leases 2.2 2.8 Total Governmental Activities Outstanding Debt 12.9$ 14.2$ Business-type Activities State Water Resources Board loans 39.4$ 43.5$ 2005 Sewer Bonds 3.8 4.1 Total Business-type Activities Outstanding Debt 43.2$ 47.6$ Real Property Net Taxable value Total Real Total Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct Year Property Property Property Other Property Property Assessed (a)Full Market (a)Tax Rate (b) 2007 5,088,269,711 1,166,696,622 3,456,741,386 280,811,705 9,992,519,424 1,294,249,195 11,286,768,619 11,286,768,619 0.30977% 2008 5,484,465,766 1,227,775,836 3,934,414,550 324,421,836 10,971,077,988 1,365,179,480 12,336,257,468 12,336,257,468 0.31878% 2009 5,790,070,116 1,368,274,141 4,871,255,093 523,110,471 12,552,709,821 2,373,808,053 14,926,517,874 14,926,517,874 0.34939% 2010 5,467,563,992 1,429,401,205 5,197,739,403 498,656,817 12,593,361,417 1,424,610,941 14,017,972,358 14,017,972,358 0.36462% 2011 5,547,292,029 1,509,554,164 4,922,422,763 387,673,530 12,366,942,486 1,279,681,193 13,646,623,679 13,646,623,679 0.36933% 2012 5,579,044,758 1,581,852,456 4,967,158,758 403,895,119 12,531,951,091 1,295,085,027 13,827,036,118 13,827,036,118 0.37860% 2013 5,606,400,603 1,628,754,902 5,050,279,321 418,927,733 12,704,362,559 1,288,434,392 13,992,796,951 13,992,796,951 0.42174% 2014 5,900,441,192 1,713,575,060 4,273,694,531 1,204,288,116 13,091,998,899 1,212,353,871 14,304,352,770 14,304,352,770 0.13474% 2015 6,313,393,048 2,402,335,027 4,588,967,014 345,957,716 13,650,652,805 1,244,971,467 14,895,624,272 14,895,624,272 0.13804% 2016 6,716,642,000 2,000,204,271 5,189,813,366 376,874,603 14,283,534,240 1,197,263,526 15,480,797,766 15,480,797,766 0.13634% Source: HdL Coren & Cone, San Mateo County Assessor 2015-16 Combined Tax Rolls. (a) (b) CITY OF SOUTH SAN FRANCISCO The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides. These values are considered to be full market values. California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area. ASSESSED VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Mi l l i o n s Unsecured Secured Fiscal Basic School Total Direct/Overlapping Year Levy Districts Tax Rates 2007 1.000 0.1287 1.1287 (1,13) 2008 1.000 0.1370 1.1370 (1,14) 2009 1.000 0.1426 1.1426 (1,15) 2010 1.000 0.1600 1.1600 (1,16) 2011 1.000 0.1707 1.1707 (1,17) 2012 1.000 0.1824 1.1824 (1,18) 2013 1.000 0.1959 1.1959 (1,19) 2014 1.000 0.2046 1.2046 (1,20) 2015 1.000 0.1822 1.1822 (1,21) 2016 1.000 0.1750 1.1750 (1,22) Notes: (1) Like other cities, South San Francisco includes several property tax rate areas with different rates. A mean average is indicated. (13) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0379 percent, which includes South San Francisco Unified School District bonds and San Mateo Jr. College bond, 3 have a rate of 1.0612, which includes Jefferson Union School bonds, one has a rate of 1.0664, which includes San Bruno Park Elementary and San Mateo High bonds, and one at a tax rate of 1.0575, for Brisbane ESD bonds and Jefferson Union High School bonds. (14) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0360 percent which includes South San Francisco Unified School Distirct bonds and San Mateo Jr. College bond, 3 have the rate of 1.0756, which includes Jefferson Union School bonds, one has a rate of 1.0716, which includes San Bruno Park Elementary and San Mateo High bonds, and one at a tax rate of of 1.0596 percent, for Brisbane ESD bonds and Jefferson union High School bonds. (15) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0327 percent, which includes South San francisco Unified School District bonds and San Mateo Jr. College bond. 2 have the rate of 1.0719 and one has a rate of 1.0689, which includes Jefferson Union School bonds and Brisbane ESD bonds, and one has a rate of 1.0710 which includes San BrunoPark Elementary. (16) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0377 percent, which includes South San francisco Unified School District bonds and San Mateo Jr. College bond. 3 have the rate of 1.0783 and one has a rate of 1.0748, which includes Jefferson Union School bonds, and Brisbane ESD bonds, and one has a rate of 1.0804 which includes San BrunoPark Elementary. (17) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0389 percent, which includes SSFUSD bonds and San mateo Jr College bond. 3 has a rate of 1.0870 percent and one at 1.0832 percent which includes Jefferson Union School bonds and Brisbane ESD bonds. One has a rate of 1.0834 percent which includes San Bruno Park Elementary. (18) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0420 percent, which includes SSFUSD bonds and San mateo Jr College bond. 3 has a rate of 1.0893 percent and one at 1.0854 percent which includes Jefferson Union School bond, Brisbane ESD bonds & San Mateo JR College bonds and one has a rate of 1.0909 percent which includes San Bruno Park Elementary. (19) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0521 percent, which includes SSFUSD bonds, San Mateo Jr College bond, and San Mateo Comm College. 4 has a rate of 1.0921 percent which includes Brisbane ESD Bond, Jefferson High bonds, SM Jr College bond and San Mateo Comm College. 1 has a rate of 1.0905 percent, which includes San Bruno Pk Elem bond, SM Union High, SM Jr College bond and San Mateo Comm Coll bond. (20) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0522 percent, which includes SSFUSD bonds, San Mateo Jr College bond, and San Mateo Comm College. 4 has a rate of 1.1048 percent which includes Brisbane ESD Bond, Jefferson High bonds, SM Jr College bond and San Mateo Comm College. 1 has a rate of 1.0864 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Comm Coll bond. (21) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0703 percent, which includes SSFUSD bonds, San Mateo Jr College bond, and San Mateo Comm College. 4 has a rate of 1.0991 percent which includes Brisbane ESD Bond, Jefferson High bonds, SM Jr College bond and San Mateo Comm College. 1 has a rate of 1.0983 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Comm Coll bond. (22) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0707 percent, which includes SSFUSD bonds, San Mateo Jr College bond, and San Mateo Comm College. 3 has a rate of 1.1080 percent and 1 with 1.1068 percent rate which includes College bond Brisbane ESD Bond, Jefferson High bonds, SM Jr and San Mateo Comm College. 1 has a rate of 1.0929 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Comm Coll bond. Source: HDL, Coren & Cone (San mateo County Assessor 2006/07- 2015/16 Tax Rate Table). CITY OF SOUTH SAN FRANCISCO DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS Percentage Percentage of Total City of Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Genentech Inc.$1,789,391,673 1 11.56%$1,594,845,246 1 14.13% Slough SSF LLC 1,083,914,651 2 7.00%271,624,939 3 2.41% ARE San Francisco LLC 434,382,623 3 2.81% Brittania Pointe Grand LP 293,120,070 4 1.89%150,263,303 4 1.33% United Airlines Inc 209,576,648 5 1.35%304,050,480 2 2.69% Gateway Center LLC 141,377,473 6 0.91%124,334,894 5 1.10% AP3-SF2 CT South LLC 139,343,336 7 0.90% BMR 180 Oyster Point LLC 120,500,000 8 0.78% SSF Logistics Inc 120,357,640 9 0.78% ASN Solaire LLC 109,279,633 10 0.71% Fairfiled South San Francisco LLC ----72,634,893 6 0.64% SFO Fuel Company LLC ------66,320,744 7 0.59% AMB Fund III Spruce LLC ------63,340,000 8 0.56% Costco Wholesale Corporatio ------60,590,226 9 0.54% Britannia Biotech Gateway L ------60,219,288 10 0.53% Subtotal $4,441,243,747 28.69%$2,768,224,013 24.53% Total Net Assessed Valuation: Fiscal Year 2015-16 $15,480,797,766 Fiscal Year 2006-07 $11,286,768,619 HdL Coren & Cone, 2006-07 & 2015-16 Top Ten Property Taxpayers (Net Values). San Mateo County Assessor 2015/16 combined Tax Rolls and the SBE Non Unitary Tax Roll Source: 2015-16 2006-07 CITY OF SOUTH SAN FRANCISCO Principal Property Tax Payers Current Year and Nine Years Ago CITY OF SOUTH SAN FRANCISCO Twenty Largest Taxable Property Owners for Merged RDA Project Area Total % of Total Assessed AV in Project Property Tax Payer Secured Unsecured Value Area Land Use Slough $951,082,474 $951,082,474 22.37%Industrial Britannia Pointe Grand LP 431,592,545 $431,592,545 10.15%Industrial Genentech 241,615,172 148,019,736 $389,634,908 9.16%Industrial, Office, R&D ARE San Francisco Exch LLC $225,661,481 $225,661,481 5.31%Industrial, Commercial BMR Gateway LLC 218,063,299 $218,063,299 5.13%Commercial Gateway Center LLC 142,364,847 0 $142,364,847 3.35%Commercial ASN Solaire LLC 109,279,633 $109,279,633 2.57%Residential Costco Wholesale Corp 40,874,057 38,659,230 $79,533,287 1.87%Commercial HCP Oyster Point III LLC 69,183,717 $69,183,717 1.63%Unknown Gateway Boulevard LLC 60,230,598 $60,230,598 1.42%Industrial BP Gateway Center LLC 58,371,181 $58,371,181 1.37%Commercial, Office, 2+ stories PR 701 Gateway LLC 57,700,000 $57,700,000 1.36%Commercial HPTMI II Properties Trust 49,750,000 $49,750,000 1.17%Residential, Hotels, Motels Blue Line Transfer Inc.49,721,835 $49,721,835 1.17%Industrial Amgen SF LLC 45,219,511 $45,219,511 1.06%Industrial OIK Sierra Point LLC 43,197,509 $43,197,509 1.02%Commercial, Office, 2+ stories Felcor CMB SSF Holdings LP 37,016,695 $37,016,695 0.87%Residential, Hotels, Motels San Mateo Health commission 35,564,235 $35,564,235 0.84%Commercial, Office, 2+ stories Areus Inc 34,712,708 $34,712,708 0.82%Commercial, Office, 2+ stories Theravance Inc.30,546,805 $30,546,805 0.72%Industrial, Office, R&D Total Top Twenty 2,855,981,986 262,445,282 3,118,427,268 73.36% Percent of AV 91.6%8.4% Source: San Mateo County Assessor , RDA Secured & Unsecured SSF 2015 Tax Rolls Source: Muni Services (1) Given the nature of the research performed at Genentech, a significant portion of the total assessed value of the Genentech Property is likely equipment. It would appear on the secured roll as that contains the value of personal property/improvements Fiscal Percent of Year Rate (2)Levies (3)Allocations (5)Collections Delinquencies Delinquent taxes 2007 1.00 (4)12,281,105 (4)(4)0.0% 2008 1.00 (4)13,177,156 (4)(4)0.0% 2009 1.00 (4)14,979,798 (4)(4)0.0% 2010 1.00 (4)13,697,389 (4)(4)0.0% 2011 1.00 (4)13,351,506 (4)(4)0.0% 2012 1.00 (4)13,360,854 (4)(4)0.0% 2013 1.00 (4)13,740,246 (4)(4)0.0% 2014 1.00 (4)14,928,197 (4)(4)0.0% 2015 1.00 (4)15,184,788 (4)(4)0.0% 2016 1.00 (4)15,994,773 (4)(4)0.0% Notes: (1) Excludes State Reimbursed Exemptions and deductions for County property tax administration. (2) County adopted full cash value method of valuation rather than assessed valuation. (3) Levies include real and personal property. (5) San Mateo County controller's Office. Adjusted estimated revenue for City of South San Francisco. Source: San Mateo County Auditor -- Controller's Office; Finance Department Revenue Reports (4) Information not applicable. All general purpose property taxes are levied by the County and allocated to other governmental entities. CITY OF SOUTH SAN FRANCISCO PROPERTY TAX LEVIES AND COLLECTIONS (1)LAST TEN FISCAL YEARS 6 7 8 9 10 11 12 13 14 15 16 17 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Mi l l i o n s CITY OF SOUTH SAN FRANCISCO Ratio of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities RDA Tax Lease Certificates Special Fiscal Allocation Revenue of Assessment Year Bonds Bonds Participation Debt Loans Total200772,400,000 194,156 5,200,000 3,884,000 81,678,156 2008 71,000,000 153,860 5,060,000 3,772,000 79,985,860 2009 69,545,000 110,434 4,915,000 3,660,000 78,230,434 2010 68,030,000 0 4,765,000 3,548,000 76,343,000 2011 66,455,000 0 4,610,000 3,436,000 74,501,000 2012 64,815,000 0 4,445,000 3,324,000 72,584,000 2013 63,115,000 0 0 0 63,115,000 2014 61,350,000 0 0 0 61,350,000 2015 59,515,000 0 0 0 59,515,000 2016 57,590,000 0 0 0 57,590,000 Business-Type Activities Sewer Certificates State Water Total Percentage Fiscal Revenue of Resources Primary of Personal Per Year Bonds Participation Loans Total Government Income (a)Capita (a) 2007 6,000,000 67,133,165 73,133,165 154,811,321 8.14%2,491.21 2008 5,790,000 67,878,194 73,668,194 153,654,054 7.82%2,419.29 2009 5,575,000 69,025,322 74,600,322 152,830,756 7.84%2,351.24 2010 5,350,000 65,028,410 70,378,410 146,721,410 7.65%2,227.37 2011 5,120,000 60,831,038 65,951,038 140,452,038 7.27%2,184.09 2012 4,885,000 56,530,946 61,415,946 133,999,946 6.76%2,057.52 2013 4,640,000 52,118,587 56,758,587 119,873,587 5.98%1,824.28 2014 4,385,000 47,591,019 51,976,019 113,326,019 5.57%1,723.62 2015 4,120,000 43,543,614 47,663,614 107,178,614 5.07%1,659.50 2016 3,850,000 39,392,832 43,242,832 100,832,832 n/a n/a Note : Debt amounts exclude any premiums, discounts, or other amortization amounts. Sources:City of South San Francisco State of California, Department of Finance (population) U.S. Department of commerce, Bureau of the Census (income) (a) See Schedule of Demographic and Economic Statistics for personal income and population data. 0 10 20 30 40 50 60 70 80 90 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Mi l l i o n s Total Governmental Total Business CITY OF SOUTH SAN FRANCISCO Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years DO NOT USE IN 2007 Probably N/A 2008 and going forward unless we have GO bond General Bonded Debt Outstanding Percentage of General Actual Taxable Fiscal Obligation Value of Per Year Bonds (1)Total Property Capita 1998 NA NA NA NA 1999 NA NA NA NA 2000 NA NA NA NA 2001 NA NA NA NA 2002 NA NA NA NA 2003 NA NA NA NA 2004 NA NA NA NA 2005 NA NA NA NA 2006 NA NA NA NA 2007 NA NA NA NA (1) The City has no general obligation bonded debt. CITY OF SOUTH SAN FRANCISCO COMPUTATION OF DIRECT AND OVERLAPPING DEBT JUNE 30, 2016 2015-16 Assessed Valuation:$15,481,636,953 Redevelopment Incremental Valuation:- Adjusted Assessed Valuation:$15,481,636,953 Total Debt City's Share of OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2016 % Applicable (1)Debt 6/30/16 San Mateo Community College District $644,384,027 8.680%$55,932,534 Jefferson Union High School District 183,678,786 1.627 2,988,454 South San Francisco Unified School District 181,153,045 89.127 161,456,274 Brisbane School District 6,255,437 11.743 734,576 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $221,111,838 Ratio to 2015-16 Assessed Valuation: Total Overlapping Tax and Assessment Debt………1.43% OVERLAPPING FUND DEBT: San Mateo County General Fund Obligations $432,359,816 8.680%$37,528,832 San Mateo County Board of Education Certificates of Participation 9,890,000 8.680 858,452 San Mateo County Flood Control District Certificates of Participation $18,725,000 6057.500%$11,342,669 South San Francisco Unified School District Certificates of Participation 493,946 89.127 440,239 Jefferson Union High School District Certificates of Participation $1,580,000 162.700%$25,707 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT:$50,195,899 OVERLAPPING TAX INCREMENT DEBT (Successor Agency):$57,590,000 100.000%$57,590,000 TOTAL DIRECT DEBT $0 Total Overlapping Debt $328,897,737 COMBINED TOTAL DEBT $328,897,737 (2) (1) Percentage of overlapping agency's assessed valuation located within boundaries of the city. Ratios to Adjusted Assessed Valuation: Total Overlapping Tax and Assessment Debt 1.43% Total Direct Debt 0.00% Combined Total Debt 2.12% Ratios to Redevelopment Successor Agnecy Incremental Valuation ($3,902,722,067): Total Overlapping Tax Increment Debt 1.47% Source: California Municipal Statistics, Inc. and City of South San Francisco 510-658-2640 Austin Busch (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, tax allocation bonds, and Successor Agency Debt. ASSESSED VALUATION:$15,481,636,953 BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)580,561,386 LESS AMOUNT OF DEBT SUBJECT TO LIMIT:0 LEGAL BONDED DEBT MARGIN $580,561,386 Total net debt Total Net Debt Legal applicable to the limit Fiscal Debt Applicable to Debt as a percentage Year Limit Limit Margin of debt limit 2007 423,253,823 0 423,253,823 0.00% 2008 469,575,123 0 469,575,123 0.00% 2009 559,744,420 0 559,744,420 0.00% 2010 525,673,963 0 525,673,963 0.00% 2011 511,748,388 0 511,748,388 0.00% 2012 518,513,854 0 518,513,854 0.00% 2013 524,729,886 0 524,729,886 0.00% 2014 536,413,229 0 536,413,229 0.00% 2015 558,585,910 0 558,585,910 0.00% 2016 580,561,386 0 580,561,386 0.00% NOTE: (a) Source: HDL Coren & Cone, San Mateo County Assessor - Combined Tax Rolls CITY OF SOUTH SAN FRANCISCO COMPUTATION OF LEGAL BONDED DEBT MARGIN JUNE 30, 2016 California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is one-fourth the limit to account for the adjustment of showing assessed valuation at full cash value. CITY OF SOUTH SAN FRANCISCO Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years Pass, do not use General Bonded Debt Outstanding Percentage of General Actual Taxable Fiscal Obligation Value of Per Year Bonds (1)Total Property Capita 1998 NA NA NA NA 1999 NA NA NA NA 2000 NA NA NA NA 2001 NA NA NA NA 2002 NA NA NA NA 2003 NA NA NA NA 2004 NA NA NA NA 2005 NA NA NA NA 2006 NA NA NA NA 2007 NA NA NA NA (1) The City has no general obligation bonded debt. CITY OF SOUTH SAN FRANCISCO REVENUE BOND COVERAGE SEWER RENTAL ENTERPRISE FUND LAST TEN FISCAL YEARS Net Revenue Debt Service Requirements (4) Fiscal Gross Operating Available for Year Revenue (1)Expenses (2)Debt Service Principal Interest Total Coverage 2007 21,409,055 11,146,870 10,262,185 (3)248,914 248,914 41.23 2008 18,418,866 12,096,256 6,322,610 (3)241,846 241,846 26.14 2009 20,722,778 13,228,883 7,493,895 215,000 235,897 450,897 16.62 2010 23,321,582 13,774,757 9,546,825 225,000 230,941 455,941 20.94 2011 23,735,469 13,527,544 10,207,925 230,000 223,973 453,973 22.49 2012 25,365,824 13,924,334 11,441,490 235,000 216,501 451,501 25.34 2013 24,782,587 15,151,968 9,630,619 245,000 208,459 453,459 21.24 2014 26,908,316 14,904,225 12,004,091 255,000 199,831 454,831 26.39 2015 26,147,550 18,630,672 7,516,878 265,000 190,533 455,533 16.50 2016 25,610,518 13,514,706 12,095,812 270,000 180,566 450,566 26.85 Notes:Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) Gross revenue includes operating revenue and non-operating revenue. (2) Direct operating expenses include operating expenses (except depreciation) and non-operating expenses (except interest expense). (3) Retirement of principal for 2005 Sewer Revenue Bonds begins in fiscal year 2008. (4) The requirement does not include loan payments on State Water Resources Board loans. See schedule of Sewer Debt service coverage for details. Source: City of South San Francisco, Department of Finance $5 $10 $15 $20 $25 $30 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Mi l l i o n s Revenue (1) Expenses (2) SEWER DEBT SERVICE COVERAGE SEWER RENTAL ENTERPRISE FUND LAST FIVE FISCAL YEARS Fiscal Year 2012 2013 2014 2015 Revenues Service Charges $19,193,259 $19,310,559 $19,129,475 $19,758,128 Connection and Other Fees 117,027 27,548 25,992 122,640 Interest Income 119,011 80,692 133,248 106,830 Developer Fees Other Cities' Participation (1)5,936,526 6,137,401 7,619,601 6,159,937 Total Revenues $25,365,824 $25,556,200 $26,908,316 $26,147,535 Operating Expenses (2)$13,924,334 $15,151,968 $14,904,225 $18,759,650 Wastewater System Net Revenues $11,441,490 $10,404,232 $12,004,091 $7,387,885 Parity Debt Service (3) State Water Resources Control Board Loans $5,997,459 $6,012,716 $6,022,799 $5,445,162 CSCDA Series 2005D Revenue Bonds 214,589 206,405 197,630 188,148 Total Parity Debt $6,212,048 $6,219,121 $6,220,429 $5,633,310 Total Parity Debt Service Coverage 1.84 1.67 1.93 1.31 10,012,867 10,012,867 10,012,867 10,012,867 (2) Excludes depreciation, capital expenditures and debt service. (3) Includes Sewer Revenue Bonds and State Water Loan payments 3,177,041.00 768,946.30 190,607.00 95,594.00 69,558.00 421,615.50 1,245,491.67 1,449,554.67 29,620.47 87,327.09 54,517.45 29,727.95 (1) Primarily consists of payments from the City of San Bruno. The City of San Bruno is a co-owner of the Plant and pays the City in advance on a quarterly basis for the C share of operating costs. See "Wastewater System" herein. (4) Reflects an adopted increase in rates for Fiscal Year 2004-05 of 25% per Resolution No. 68-2004, adopted by the City Council on July 14, 2004 and effective on and af an adopted increase in rates for Fiscal Year 2005-06 of 9% per Resolution No. 68-2005, adopted by the City Council on June 22, 2005 and effective on and after June 22, 2 CITY OF SOUTH SAN FRANCISCO 7,619,601.10 7,619,601 0 total 20,229,244.89 less transfers out -51,297.02 less debt service -1,437,860.25 total 18,740,087.62 less depreciation -3,752,782.67 14,987,304.95 on the report 14,904,225.00 difference immaterial 83,079.95 2016 2,009 $19,515,093 a 15,770,470 104,283 b 162,599 238,389 c 231,431 d -44,468 5,752,765 e 4,602,746 $25,610,530 13,414,507 20,722,778 -2,267,637 $13,514,718 f 23,320 13,228,883 $12,095,812 11,170,190 7,493,895 From Trial balance fund 71 on s drive. By fund. $5,449,692 2,016 2,015 5,507,077 2,014 2,013 178,036 92,848 97,684 235,897 102,147 106,312 110,189 $5,627,728 87,718 92,848 $5,742,974 $97,684 $102,147 106,312 -45,788 -48,173 -50,374 -52,428 -54,340 2.15 43,258 45,788 1.30 48,173.00 50,374.00 52,428 10,012,867 178,036 188,148 197,630 206,405 214,589 5 1,102,499 126,016 525,029 4,102 2,015 2,014 2,013 1 run expenditure by object report 710-*-7* 2 add 7001 and 7004 to get a total 5,633,310 6,220,429 6,219,121 3 then back out the other debt service 188,148 197,630 206,405 5,445,162 6,022,799 6,012,716 2,994,656 817,134 151,532 74,179 53,519 205,032 1,048,022 751,592 34,333 19,376 10,562 City of San Bruno's fter July 1, 2004 and 2005. 6,159,937 2,015 2,016 23,872,588.21 18,528,383.66 -6,882.63 -16,009.91 -1,320,905.32 -1,206,946.76 22,544,800.26 17,305,426.99 -3,785,150.27 -3,790,708.96 18,759,649.99 13,514,718.03 15,601,508 16,900,395 -2,372,625 -3,372,851 13,228,883 13,527,544 Expenditure by object Report 710-*-7* 2,008 2,009 2,010 113,783 117,158 123,163 120,276 cscda 2005 swr interest 110,189 113,783 120,276 117,158 cscda interest pymt 3,744,491 3,842,458 4,221,809 -54,340 -57,777 -60,907 -59,314 reverse rev bond accrual 1,918,895 1,900,516 1,883,443 52,428 56,112 59,314 57,777 rev bond inter accural -241,846 -235,897 -229,276 5,421,540 5,507,077 5,875,977 222,061 229,276 241,846 235,897 84,377 4 3 1 2 503,104 898,948 503,104 59,690 501,145 97,248 1,046,056 2,227,365 1,046,056 1,693,226 3,627,458 1,646,408 accr int prin int 2,016 total 5,627,728 backout 178,036 remaining 5,449,692 4,427,372.08 4,535,092 2,065,548 1,676,957 -197,630 -188,148 6,295,290 6,023,900 CITY OF SOUTH SAN FRANCISCO REDEVELOPMENT PLEDGED REVENUE COVERAGE LAST SEVEN FISCAL YEARS Funding Source: RDA tax increment revenues Fiscal Available Debt Service Requirements Fiscal Available Debt Service Requirements Year Revenue Principal Interest Total Coverage Year Revenue Principal Interest Total Coverage 2010 35,871,577 1,330,000 3,193,869 4,523,869 7.93 2010 5,798,618 185,000 107,205 292,205 19.84 2011 44,300,878 1,380,000 3,141,394 4,521,394 9.80 2011 5,732,171 195,000 98,748 293,748 19.51 2012 25,114,631 1,435,000 3,086,819 4,521,819 5.55 2012 25,114,631 205,000 89,645 294,645 85.24 2013 1,490,000 3,030,181 4,520,181 2013 210,000 79,995 289,995 2014 1,545,000 2,971,344 4,516,344 2014 220,000 69,780 289,780 2015 1,605,000 2,904,331 4,509,331 2015 230,000 58,750 288,750 2016 1,680,000 2,834,619 4,514,619 2016 245,000 46,875 291,875 (1) New issuance. Retirement of principal and interest begins in fiscal year 2007. Funding Source: RDA tax increment revenues Funding Source: RDA tax increment revenues Fiscal Available Debt Service Requirements Fiscal Available Debt Service Requirements Year Revenue Principal Interest Total Coverage Year Revenue Principal Interest Total Coverage 2010 35,871,577 150,000 244,775 394,775 90.87 2010 35,871,577 110,434 6,428 116,862 306.96 2011 44,300,878 155,000 238,250 393,250 112.65 2012 25,114,631 165,000 230,500 395,500 63.50 2013 2014 2015 2016 Funding Source: RDA tax increment revenues Fiscal Available Debt Service Requirements Year Revenue Principal Interest Total Coverage 2010 35,871,577 1,590,434 3,445,072 5,035,506 7.12 2011 44,300,878 1,535,000 3,379,644 4,914,644 9.01 2012 25,114,631 1,600,000 3,317,319 4,917,319 5.11 2013 1,490,000 3,030,181 4,520,181 2014 1,545,000 2,971,344 4,516,344 2015 1,605,000 2,904,331 4,509,331 2016 1,680,000 2,834,619 4,514,619 Note: Redevelopment Agencies abolished as of 1/31/2012.Numbers for 2012 include the first and second RPTTF distributions received. (A) Shows coverage of all non-housing bonds pledged to tax increment. Source: City of South San Francisco, Department of Finance RDA All Non-housing (A) 2006 RDA Revenue Bonds Funding Source: RDA Gateway and Low Moderate Income Housing tax increment revenues. Gateway bonds defeased in FY 05-06. 1999 RDA Revenue Bonds (Housing) 1989 Cal Health Facilities Financing Authority Revenue Bonds1999 Certificates of Participation City City Estimated Personal Per Capita City San Mateo City City Income (2)Personal Unemployment County Population Year Population (1)(in thousands)Income (2)Rate (3)Population (1) % of County 2005 61,444 1,681,507 27,366 5.3%723,453 8.49% 2006 61,729 1,810,075 29,323 4.6%724,104 8.52% 2007 62,143 1,903,016 30,623 4.7%733,496 8.47% 2008 63,512 1,964,028 30,924 6.0%739,469 8.59% 2009 65,000 1,948,798 29,982 10.3%745,858 8.71% 2010 65,872 1,918,061 29,118 10.7%754,285 8.73% 2011 64,307 1,932,618 30,053 9.7%729,443 8.82% 2012 65,127 1,982,857 30,446 6.3%735,678 8.85% 2013 65,710 2,005,666 30,523 5.2%747,373 8.79% 2014 65,749 2,033,156 30,923 4.5%745,635 8.82% 2015 64,585 2,114,826 32,744 3.6%765,135 8.44% Notes: ** All data were updated to reflect the City of South San Francisco's current information available through HDL, Coren & Cone Data Sources: (1) Population: HDL/California State Dept of Finance. (2) Personal and per capita income: HDL, Coren & Cone (3) Unemployment Data: HDL/California Employment Development Department CITY OF SOUTH SAN FRANCISCO DEMOGRAPHIC AND ECONOMIC STATISTICS LAST TEN YEARS 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 2,000,000 2,200,000 City Personal Income (in Thousands) 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 City Unemployment Rate 8.20% 8.30% 8.40% 8.50% 8.60% 8.70% 8.80% 8.90% City Population % of County 24,000 25,000 26,000 27,000 28,000 29,000 30,000 31,000 32,000 33,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 City Per Capita Personal Income Percentage Percentage Number of of Total City Number of of Total City Employer Employees Rank Employment Employees Rank Employment Genentech 8,446 1 13.1%8,170 2 13.0% Layton Construction Co Inc 779 2 1.2% Onyx Pharmaceuticals Inc 650 3 1.0% Life Technologies Corporation 622 4 1.0% Costo Wholesalers (2 stores)616 5 1.0%798 4 1.3% Amgen San Francisco LLC 406 6 0.6% Successfactors, Inc.400 7 0.6%675 6 1.1% SBM Site Services LLC 388 8 0.6% Wave Division Holdings LLC 344 9 0.5% Tobi.com, LLC 328 10 0.5% United Airlines 9,000 1 14.4% Kaiser Medical Center 1,100 3 1.8% United Parcel Service 790 5 1.3% Elan Pharmaceuticals 650 7 1.0% Exelixis 550 8 0.9% Cell Genesis 375 9 0.6% Monogram Biosciences 350 10 0.6% Subtotal 12,979 20.1%22,458 35.9% Total City Population 64,585 62,614 Source: SSF Business License Database- Business licenses expiring 12/31/16. CAFR 2006-07 2006-072015-16 CITY OF SOUTH SAN FRANCISCO Principal Employers Current Year and Nine Years Ago CITY OF SOUTH SAN FRANCISCO Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years (Adopted Operating Budget) Functions 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 General Government (1) 35.48 35.67 35.60 37.00 37.00 36.60 36.60 37.60 40.60 47.10 Fire Department 76.48 77.48 80.48 82.48 82.48 82.48 82.48 82.98 83.48 92.68 Police Department 107.45 110.85 111.65 114.65 112.65 110.65 115.65 119.75 118.87 120.87 Park, Rec. & Maintenance Services (3)105.49 115.15 116.37 116.34 116.05 107.86 111.66 117.21 121.31 134.16 Library 38.54 38.68 40.21 40.81 40.81 35.34 35.35 37.66 37.71 38.71 Economic and Comm. Development (2) 37.21 33.35 35.35 26.45 28.95 24.45 23.45 24.40 26.15 27.15 Public Works (2) (3)39.76 42.00 42.10 43.85 40.05 43.03 45.02 47.21 47.68 49.00 Water Quality Control Plant 37.59 38.59 38.59 39.54 40.64 38.82 38.82 39.63 39.06 41.74 Total 478.00 491.77 500.35 501.12 498.63 479.23 489.03 506.44 514.86 551.41 Notes: 1. City Manager, Council members, City Clerk, HR, IT and Finance are under General Government. 2. Oversight of the Engineering has been moved from Economic and Community Development to Public Works. 3.Oversight of Parks and Common Greens was moved from PW to Parks, Rec and Maintenance Services Source: City of South San Francisco Adopted Operating Budget FY 2015-16 0 100 200 300 400 500 600 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Em p l o y e e General Government (1)Fire Department Police Department Public Works (2) (3) Park, Rec. & Maintenance Services (3)Library Economic and Comm. Development (2)Water Quality Control Plant 2012 2013 2014 2015 2016 Function/ProgramPublic safety:Fire: Inspections 1,997 2,369 2,574 1,817 2,563Police: Police calls for service 29,195 33,657 29,359 31,532 32,477 Law violations: Part I crimes 2,012 1,874 1,780 1,874 2,126 Physical arrests (adult and juvenile)1,790 2,081 2,158 1,933 2,071 Traffic violations 3,954 3,632 4,175 3,828 4,211 Parking violations 19,108 14,648 16,597 13,378 12,006Public worksStreet resurfacing (miles) (Eng Div)4.75 3 22 (2) 0 2Potholes repaired (square miles)0.37 0.13 0.20 0.11 2Asphalt used for street repairs (tons)420 287 435 250 151 Culture and recreation: Recreation class participants 26,737 27,184 26,694 26,879 (3) 23,399 Library:Total items borrowed 731,911 701,721 686,491 (1) 643,630 565,806Items in collection 181,905 188,394 185,482 (1) 130,106 (4) 208,400 WastewaterResidential connections 16,466 16,466 16,482 16,470 16,491Commercial connections 1,576 1,566 1,562 1,560 1,561Other connections 140 127 128 128 131Average daily sewage treatment (millions of gallons 9.18 9.27 8.28 8.89 7.92 Note: N/A denotes information not available. (1) Year 2015 decrease is due to clearing out of outdated and damaged items in the collection. Prior to Grand library's remodel, most of the outdated items are already cleaned out. (2) Street resurfacing project estimated early next year (2016). (3) Registration counts have excluded all withdrawals from the classes for the year while the numbers in 2011-2015 did not. (4) New items added for Grand Library and electronic books are also included. CITY OF SOUTH SAN FRANCISCO Operating Indicators by Function/Program Last Five Fiscal Years ` 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Function/ProgramPublic safety: Fire stations 5 5 5 5 5 5 5 5 5 5Police stations 1 1 1 1 1 (6) 1 (6) 1 1 1 1Police Fleet 41 (1) 45 (2) 48 (2) 48 52 51 51 (8) 50 53 53 Public worksMiles of streets 127 127 127 127 127 127 127 127 127 127Street lights 3,738 3,779 3,779 4,156 4,160 4,160 (7) 4,505 4,505 4,505 4,505Parking District lights 20 20 20 20 20 20 20 20 20 20Traffic Signals 70 70 70 73 74 74 74 74 74 76 Culture and recreation:Community services:City parks 25 28 28 28 28 28 28 28 28 28City parks acreage 189 190 190 190 190 190 190 190 190 190Playgrounds24242424242424242424City trails 6 6 6 6 6 6 6 6 6 6Community gardens 1 1 1 1 1 1 1 1 1 1Community centers 4 4 4 4 4 4 4 4 4 4Senior centers 2 2 2 2 (4) 1 1 1 1 1 1Skate Park (3) 1 1 1 1 1 1 1Dog park (3) 1 1 1 1 1 1 1Swimming pools 1 1 1 1 1 1 1 1 1 1Tennis courts 7 7 7 7 7 7 7 7 7 7Basketball Courts 12 12 12 12 12 12 12 12 12 12Baseball/softball diamonds 11 11 11 11 11 11 11 11 11 11Soccer/football fields 5 5 5 5 5 5 5 5 5 5 Library:City Libraries (6)2 2 2 2 2 2 2 2 2 2 WastewaterMiles of sanitary sewers 164 164 164 164 164 164 164 164 164 164Miles of storm sewers 125 125 125 125 125 125 125 125 125 125Number of treatment plants 1 1 1 1 1 1 1 1 1 1 Source: ssf.net/depts/rcs; Director of Rec & Comm Services; Superintendent of parks & Maintenance (1) Police patrol units consists of 35 marked/unmarked cars, 6 motorcycles, 1 SWAT and 3 cushman. (2) Year 2009, the 3 units added are not new. These are units that was not included on the previous Fleet count. (3) Year 2010, Skate park and dog park was added on the list. (4) The only senior center is Magnolia Center but programming still continues at El Camino. (5) Community Learning Center not included on count as it is only a homework center not a library. (6) Police substation located behind Miller parking garage not included. (7) Includes all lights in SSF billed as LS-2 from PG&E (8) One less motorcycle from last year. CITY OF SOUTH SAN FRANCISCO Capital Asset Statistics by Function/Program Last Ten Fiscal Years 2014 2015 2016 Transient Occupancy Tax Detail 8% TOT collected 10,056,615 11,652,726 12,054,093 1% Measure I Special Tax 1,117,402 1,294,747 1,339,344 Total TOT Collection 11,174,017 12,947,474 13,393,436 1% Measure I Special Tax Use Police 223,480 258,949 267,869 Fire 223,480 258,949 267,869 Library 223,480 258,949 267,869 Parks 223,480 258,949 267,869 Recreation 223,480 258,949 267,869 Total 1% Measure I Special Tax 1,117,402 1,294,747 1,339,344 CITY OF SOUTH SAN FRANCISCO Collection and Use of 1% Special Transient Occupancy Tax (TOT) Approved by Voters as Measure I * Miscellaneous Information Last Three Fiscal Years * Note: Measure I, a one percent supplemental special tax to the already existing 8% general transient occupancy tax (TOT) was approved on Nov. 2, 2004 and took effect January 1, 2005. Special tax was earmarked for use to supplement Police, Fire, Library, and Parks and Recreation expenditures.