HomeMy WebLinkAbout02.08.2023 Regular CC 0600Wednesday, February 8, 2023
6:00 PM
City of South San Francisco
P.O. Box 711
South San Francisco, CA
HYBRID IN-PERSON /VIRTUAL MEETING
33 Arroyo Drive, South San Francisco, CA
City Council
Regular Meeting Agenda
1
February 8, 2023City Council Regular Meeting Agenda
HYBRID IN-PERSON/VIRTUAL MEETING NOTICE
The purpose of conducting the meeting as described in this notice is to provide the safest environment for staff
and the public while allowing for public participation.
Councilmembers Coleman, Flores and Addiego, Vice Mayor Nagales and Mayor Nicolas and essential City
staff may participate via Teleconference.
Pursuant to Ralph M. Brown Act, Government Code Section 54953, all votes shall be by roll call due to
council members participating by teleconference.
The City Council may meet by teleconference, consistent with the Brown Act as amended by AB 361 (2021).
Under the amended rules, the City will not provide a physical location for members of the public to participate
in the teleconference meeting.
American Disability Act:
The City Clerk will provide materials in appropriate alternative formats to comply with the Americans with
Disabilities Act. Please send a written request to City Clerk Rosa Govea Acosta at 400 Grand Avenue, South
San Francisco, CA 94080, or email at all-cc@ssf.net. Include your name, address, phone number, a brief
description of the requested materials, and preferred alternative format service at least 72-hours before the
meeting.
Accommodations: Individuals who require special assistance of a disability -related modification or
accommodation to participate in the meeting, including Interpretation Services, should contact the Office of the
City Clerk by email at all-cc@ssf.net, 72-hours before the meeting.
Notification in advance of the meeting will enable the City of South San Francisco to make reasonable
arrangements to ensure accessibility to the meeting.
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February 8, 2023City Council Regular Meeting Agenda
How to observe the Meeting (no public comment):
1) Local cable channel: Astound, Channel 26, Comcast, Channel 27, or AT&T, Channel 99
2) https://www.ssf.net/government/city-council/video-streaming-city-and-council-meetings/city-council
ZOOM LINK BELOW -NO REGISTRATION REQUIRED
Join Zoom meeting: https://ssf-net.zoom.us/j/83872968569 (Enter your email and name)
Webinar ID: 838 7296 8569
Join by Telephone: +1 669 900 6833
How to submit written Public Comment before the City Council Meeting:
Members of the public are encouraged to submit public comments in writing in advance of the meeting via the
eComment tab by 4:00 p.m. on the meeting date. Use the eComment portal by clicking on the following link :
https://ci-ssf-ca.granicusideas.com/meetings or by visiting the City Council meeting's agenda page. eComments
are also directly sent to the iLegislate application used by City Council and staff.
How to provide Public Comment during the City Council Meeting:
COMMENTS ARE LIMITED TO THREE (3) MINUTES PER SPEAKER
1. By Zoom: When the Clerk calls for the item on which you wish to speak, click on "raise hand." Speakers will
be notified shortly before they are called to speak.
2. By Phone: Enter the conference ID fund on the agenda. When the Clerk calls for the item on which you wish
to speak, Click *9 to raise a hand to speak. Click *6 to unmute when called.
3. In Person: Complete a Digital Speaker Card located at the entrance to the Council Chamber ’s. Be sure to
indicate the Agenda Item # you wish to address or the topic of your public comment. When your name is
called, please come to the podium, state your name and address (optional) for the Minutes.
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February 8, 2023City Council Regular Meeting Agenda
PEOPLE OF SOUTH SAN FRANCISCO
The City Council's regular meetings are held on the second and fourth Wednesday of each month at 6:00 p.m.
BUENAFLOR NICOLAS, Mayor (District 3)
MARK NAGALES, Vice Mayor (District 2)
MARK ADDIEGO, Councilmember (District 1)
JAMES COLEMAN, Councilmember (District 4)
EDDIE FLORES, Councilmember (District 5)
ROSA GOVEA ACOSTA, City Clerk
FRANK RISSO, City Treasurer
SHARON RANALS, Interim City Manager
SKY WOODRUFF, City Attorney
In accordance with California Government Code Section 54957.5, any writing or document that is a public
record, relates to an open session agenda item, and is distributed less than 72 hours prior to a regular
meeting will be made available for public inspection in the City Clerk’s Office located at City Hall. If,
however, the document or writing is not distributed until the regular meeting to which it relates, then the
document or writing will be made available to the public at the location of the meeting, as listed on this
agenda. The address of City Hall is 400 Grand Avenue, South San Francisco, California 94080.
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February 8, 2023City Council Regular Meeting Agenda
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
AGENDA REVIEW
ANNOUNCEMENTS FROM STAFF
PRESENTATIONS
Proclamation recognizing February as Black History Month. (Flor Nicolas, Mayor)1.
PUBLIC COMMENTS
Under the Public Comment section of the agenda, members of the public may speak on any item not listed
on the Agenda and on items listed under the Consent Calendar. Individuals may not share or offer time to
another speaker. Pursuant to provisions of the Brown Act, no action may be taken on a matter unless it is
listed on the agenda, or unless certain emergency or special circumstances exist. The City Council may
direct staff to investigate and/or schedule certain matters for consideration at a future Council meeting .
Written comments on agenda items received prior to 4:00 p.m. on the day of the meeting will be included as
part of the meeting record but will not be read aloud.
If there appears to be a large number of speakers, the Mayor may reduce speaking time to limit the total
amount of time for public comments (Gov. Code sec. 54954.3(b)(1).). Speakers that are not in compliance
with the City Council's rules of decorum will be muted.
COUNCIL COMMENTS/REQUESTS
CONSENT CALENDAR
Matters under the Consent Calendar are considered to be routine and noncontroversial. These items will
be enacted by one motion and without discussion. If, however, any Council member (s) wishes to comment
on an item, they may do so before action is taken on the Consent Calendar. Following comments, if a
Council member wishes to discuss an item, it will be removed from the Consent Calendar and taken up in
order after adoption of the Consent Calendar.
Motion to approve the Minutes for January 17, 2023, January 18, 2023, and January
25, 2023. (Rosa Govea Acosta, City Clerk)
2.
Report regarding a resolution accepting $5,003.67 from the South San Francisco
Friends of the Library to support library collections and programs in the New Main
Library, and approving Budget Amendment # 23.044. (Valerie Sommer, Library
Director)
3.
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February 8, 2023City Council Regular Meeting Agenda
Resolution accepting $5,003.67 from the South San Francisco Friends of the Library
to support library collections and programs in the New Main Library, and approving
Budget Amendment # 23.044.
3a.
Report regarding a resolution making findings and declaring the property located at
367 Marina Boulevard (APN 015-011-350) as surplus land and authorizing transmittal
of a Notice of Availability. (Ernesto Lucero, Acting Deputy Director, Economic and
Community Development Department)
4.
Resolution making findings and declaring the property located at 367 Marina
Boulevard (APN 015-011-350) as surplus land and authorizing transmission of Notices
of Availability.
4a.
Report regarding a resolution authorizing the acceptance of $20,500 in donations from
the South San Francisco Association of Firefighters Local 1507 Charity Foundation.
(Jess Magallanes, Fire Chief)
5.
Resolution authorizing the acceptance of $20,500 in donations from the South San
Francisco Association of Firefighters Local 1507 Charity Foundation.
5a.
ADMINISTRATIVE BUSINESS
Motion to accept Measure W Citizens’ Oversight Committee report independently
verifying Fiscal Year 2021-22 Measure W revenues and expenditures. (Karen Chang,
Director of Finance; and Sharon Ranals, Interim City Manager)
6.
Report regarding a resolution accepting the Annual Comprehensive Financial Report
(ACFR) and other related Miscellaneous reports for Fiscal Year 2021-22 (Karen
Chang, Finance Director)
7.
Resolution approving the Annual Comprehensive Financial Report and other related
Miscellaneous reports for Fiscal Year 2021-22
7a.
Motion to approve the Schematic Design of the Orange Memorial Park Aquatic Center
(Project No. pk2310). (Philip Vitale, Deputy Director of Capital Projects)
8.
Report regarding a resolution approving the acceptance of specified grant funds from
the California Budget Act of 2022, item 3790-101-0001 as amended by Assembly Bill
179, in an amount of $3,200,000 for the Linden Park project at 616 and 700 Linden
Avenue pursuant to budget amendment #23.043. (Greg Mediati, Director of Parks and
Recreation, Philip Vitale, Deputy Director of Capital Projects, and Christina
Fernandez, Deputy City Manager)
9.
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February 8, 2023City Council Regular Meeting Agenda
Resolution authorizing the acceptance of specified grant funds from the Budget Act of
2022, item 3790-101-0001 as amended by Assembly Bill 179, Section 19.56 item# (b)
(1)(AK) in an amount of $3,200,000 for the Linden Avenue Park project pursuant to
budget amendment #23.043.
9a.
Report regarding a recommendation to authorize the submittal of two applications for
the San Mateo County Shuttle program funding in a total amount of $1,661,876.25,
committing a 25% total matching contribution of $553,958.75 from South San
Francisco Local Measure A funds, in support of the South City Shuttle program.
(Marissa Garren, Management Analyst I)
10.
Resolution authorizing the submittal of an application for the San Mateo County
Shuttle Program Funding in an amount of $1,064,400 and committing a 25% matching
contribution of $354,800 from South San Francisco Local Measure A funds, in
support of the South City Shuttle program
10a.
Resolution authorizing the submittal of a second application for the San Mateo County
Shuttle program funding in an amount of $597,476.25 and committing a 25%
matching contribution of $199,158.75 from South San Francisco Local Measure A
funds, to provide additional shuttle services in South San Francisco
10b.
ITEMS FROM COUNCIL – COMMITTEE REPORTS AND ANNOUNCEMENTS
ADJOURNMENT
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-103 Agenda Date:2/8/2023
Version:1 Item #:1.
Proclamation recognizing February as Black History Month.(Flor Nicolas, Mayor)
City of South San Francisco Printed on 2/3/2023Page 1 of 1
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Dated: February 6, 2023
RECOGNITION OF FEBRUARY AS BLACK HISTORY MONTH
February 6, 2023
WHEREAS, the City of South San Francisco’s elected officials, city staff and
residents are committed to a vision that reflects the cultures of our diverse community;
and
WHEREAS, each February, National Black History Month serves as both a
celebration and a powerful reminder that Black history is American history, Black
culture is American culture, and Black stories are essential to the ongoing story of
America; and
WHEREAS, shining a light on Black history today is as important to
understanding ourselves and growing stronger as a Nation as it has ever been. That is
why it is essential that we take time to celebrate the immeasurable contributions of Black
Americans, honor the legacies and achievements of generations past, reckon with
centuries of injustice, and confront those injustices that still fester today; and
WHEREAS, today, Black Americans lead industries and movements for change,
serve our communities and our Nation at every level, and advance every field across the
board, including arts and sciences, business and law, health and education, and many
more. Black Americans can be seen in every part of our society today, strengthening and
uplifting all of America; and
WHEREAS, the City of South San Francisco continues to work toward becoming
an inclusive community in which all citizens – past, present, and future – are respected
and recognized for their contributions and potential contributions to our community, the
state, the country, and the world; and
WHEREAS, as we celebrate National Black History Month, let us all recommit
ourselves to continue to fight for the equity, opportunity, and dignity to which every Black
American is due in equal measure.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
South San Francisco does hereby proclaim February as Black History Month and
encourages all citizens to celebrate our diverse heritage and culture, and continue our
efforts to create a world that is more just, peaceful, and prosperous for all.
________________________________
Buenaflor Nicolas, Mayor
________________________________
Mark Nagales, Vice Mayor
________________________________
Mark Addiego, Councilmember
________________________________
James Coleman, Councilmember
________________________________
Eddie Flores, Councilmember
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-102 Agenda Date:2/8/2023
Version:2 Item #:2.
Motion to approve the Minutes for January 17, 2023, January 18, 2023, and January 25, 2023. (Rosa Govea Acosta, City
Clerk)
City of South San Francisco Printed on 2/3/2023Page 1 of 1
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CALL TO ORDER Mayor Nicolas called the meeting to order at 6:01 p.m.
ROLL CALL Councilmember Addiego, present
Councilmember Coleman, present
Councilmember Flores, present
Vice Mayor Nagales, present
Mayor Nicolas, present
AGENDA REVIEW
None.
REMOTE PUBLIC COMMENTS – comments are limited to items on the Special Meeting Agenda.
None.
ADMINISTRATIVE BUSINESS
1. Report regarding Boards and Commissions interviews and appointments to the Cultural Arts
Commission, Library Board, Parks and Recreation Commission, Planning Commission, and
Parking Place Commission. (Rosa Govea Acosta, City Clerk).
a. Interview Applicants for Multiple Positions:
6:10 p.m. Joseph Monitiano
6:20 p.m. Monita Sharma
6:30 p.m. Joanne Sun
6:40 p.m. Eyad Ibrahim
6:50 p.m. Brandon Chan
Council interviewed applicants Monitiano, Sharma, Sun, Ibrahim, and Chan.
Meeting recessed: 7:24 p.m.
Meeting resumed: 7:32 p.m.
MINUTES
SPECIAL MEETING
CITY COUNCIL
CITY OF SOUTH SAN FRANCISCO
TUESDAY, JANUARY 17, 2023
6:00 p.m.
Teleconference via Zoom
The City Council may meet by teleconference, consistent with the Brown Act as amended by
AB 361 (2021. Under the amended rules, the City will not provide a physical location for
members of the public to participate in the teleconference meeting.
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SPECIAL CITY COUNCIL MEETING JANUARY 17, 2023
MINUTES PAGE 2
b. Interview Applicants for Cultural Arts Commission:
7:10 p.m. Frances Luster
7:20 p.m. Cesilia Baeza
Council interviewed applicant Luster. Applicant Baeza did not show up for her interview.
c. Interview Applicants for Library Board:
7:30 p.m. Mary Giusti
7:40 p.m. Stephanie Marfo
7:50 p.m. Catherine Abalos
Council interviewed applicants Giusti, Marfo and Abalos.
d. Discussion and consideration of appointment of applicants to the Library Board. Council
may appoint one (1) applicant to a term expiring January 17, 2026. Applicants: Catherine
Abalos, Mary Giusti, Stephanie Marfo, Monita Sharma, Joanne Sun
After discussion and voting, Council re-appointed Applicant Mary Giusti to the Library Board.
Motion− Councilmember Addiego/Second− Councilmember Coleman to appoint Mary Giusti to the
Library Board for a term expiring January 17, 2026. Unanimously approved by roll call vote.
ADJOURNMENT
Being no further business Mayor Nicolas adjourned the meeting at 8:13 p.m.
Submitted by: Approved:
Jazmine Miranda Buenaflor Nicolas
Assistant City Clerk Mayor
Approved: / /
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CALL TO ORDER Mayor Nicolas called the meeting to order at 6:00 p.m.
ROLL CALL Councilmember Addiego, present
Councilmember Coleman, present
Councilmember Flores, present
Vice Mayor Nagales, present
Mayor Nicolas, present
AGENDA REVIEW
None.
REMOTE PUBLIC COMMENTS – comments are limited to items on the Special Meeting Agenda.
None.
ADMINISTRATIVE BUSINESS
1. Report regarding Boards and Commissions interviews and appointments to the Cultural Arts
Commission, Parking Place Commission, Parks and Recreation Commission, and Planning
Commission. (Rosa Govea Acosta, City Clerk).
a. Interview Applicants for Parking Place Commission:
6:10 p.m. Dana Abarca
6:20 p.m. Hermes Monzon-Ruiz
Council interviewed applicants Abarca and Monzon-Ruiz.
b. Interview Applicants for Parks & Recreation Commission:
6:30 p.m. Ruben Martin
6:40 p.m. Betty Battaglia
6:50 p.m. Kristy Camacho
7:00 p.m. Steve Firpo
7:10 p.m. Jericko Gonzalez
Council interviewed applicant Martin, Battaglia, Camacho, and Firpo. Applicant Gonzalez did not
show up for his interview.
MINUTES
SPECIAL MEETING
CITY COUNCIL
CITY OF SOUTH SAN FRANCISCO
TUESDAY, JANUARY 18, 2023
6:00 p.m.
Teleconference via Zoom
The City Council may meet by teleconference, consistent with the Brown Act as amended by AB
361 (2021. Under the amended rules, the City will not provide a physical location for members of
the public to participate in the teleconference meeting.
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SPECIAL CITY COUNCIL MEETING JANUARY 18, 2023
MINUTES PAGE 2
Meeting recessed: 7:30 p.m.
Meeting resumed: 7:40 p.m.
c. Interview Applicants for Planning Commission:
7:30 p.m. Tony Alejandre
7:40 p.m. Lyman Chao
7:50 p.m. Michele Evans
8:00 p.m. Norman Faria
8:10 p.m. Richard Garbarino
Council interviewed applicants Alejandre, Chao, Evans, Faria, and Garbarino.
d. Interview Applicant for Cultural Arts Commission:
8:20 p.m. Jamie Rey
Council interviewed applicant Rey.
e. Discussion and consideration of appointment of applicants to the Cultural Arts
Commission. Council may appoint one (1) applicant to a term expiring January 18,
2027.
Applicants: Ibrahim, Luster, Sharma, Sun, and Rey.
After discussion and voting, Council re-appointed Applicant Frances Luster to the Cultural Arts
Commission.
Motion− Councilmember Addiego/Second− Vice Mayor Nagales to re-appoint Frances Luster to the
Cultural Arts Commission for a term expiring January 18, 2027. Unanimously approved by roll call
vote.
f. Discussion and consideration of appointment of applicants to the Parking Place
Commission. Council may appoint two (2) applicants to a term expiring January 18,
2026.
Applicants: Abarca, Chan, and Monzon-Ruiz.
After discussion and voting, Council re-appointed Applicants Dana Abarca and Hermes Monzon-
Ruiz to the Parking Place Commission.
Motion− Councilmember Addiego/Second− Councilmember Coleman to re-appoint Dana Abarca
and Hermes Mozon-Ruiz to the Parking Place Commission for a term expiring January 18, 2027.
Approved by roll call vote: AYES: Councilmembers Addiego, Vice Mayor Nagales, and Mayor
Nicolas; NAYS: None; ABSTAIN: Councilmember Coleman and Flores.
g. Discussion and consideration of appointment of applicants to the Parks & Recreation
Commission. Council may appoint three (3) applicants to a term expiring January 18, 2027.
Applicants: Battaglia, Chan, Camacho, Firpo, Martin, and Monitiano.
After discussion and voting, Council re-appointed Applicants Betty Battaglia, Kristy Camacho, and
Steve Firpo to the Parks & Recreation Commission.
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SPECIAL CITY COUNCIL MEETING JANUARY 18, 2023
MINUTES PAGE 3
Motion− Councilmember Flores/Second− Vice Mayor Nagales to appoint Betty Battaglia, Kristy
Camacho, and Steve Firpo to the Parks & Recreation Commission for a term expiring January 18,
2027. Approved by roll call vote: AYES: Councilmembers Addiego, and Flores, Vice Mayor Nagales,
and Mayor Nicolas; NAYS: None; ABSTAIN: Councilmember Coleman
h. Discussion and consideration of appointment of applicants to the Planning Commission.
Council may appoint three (3) applicants to a term expiring January 18, 2027.
Applicants: Alejandre, Chao, Evans, Faria, Garbarino, Ibrahim, and Monitiano.
After discussion and voting, Council re-appointed Applicants Michele Evans and Norman Faria to
the Planning Commission and extend recruitment to fill the third vacancy.
Motion− Councilmember Addiego/Second− Councilmember Flores to appoint Michele Evans and
Norman Faria to the Planning Commission for a term expiring January 18, 2027 and extend
recruitment to fill the third vacancy. Unanimously approved by roll call vote.
ADJOURNMENT
Being no further business Mayor Nicolas adjourned the meeting at 9:47 p.m.
Submitted by: Approved:
Jazmine Miranda Buenaflor Nicolas
Assistant City Clerk Mayor
Approved: / /
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CALL TO ORDER
Mayor Nicolas called the meeting to order at 6:00 p.m.
ROLL CALL
Councilmember Addiego, present in Council Chambers
Councilmember Coleman, present via Zoom
Councilmember Flores, present in Council Chambers
Vice Mayor Nagales, present in Council Chambers
Mayor Nicolas, present in Council Chambers
PLEDGE OF ALLEGIANCE
Parks and Recreation Director Mediati led the pledge.
AGENDA REVIEW
No changes.
ANNOUNCEMENTS FROM STAFF
Deputy City Manager Fernandez provided an update on the storm recovery and shared how
departments are actively working to mitigate against future storms. Mayor Nicolas thanked Deputy
City Manager Fernandez for her report.
Interim City Manager Ranals shared that the YMCA Community Resource Agency sponsors a food
distribution program that occurs the 4th Wednesday of every month at the City parking lot adjacent to
the Boys and Girls Club. Due to them being asked to find a new site for their distributions that occurs
on Huntington Ave on the 2nd and 4th Thursdays of the month, YMCA asked for City assistance in
finding a new site. Beginning Thursday, February 23, 2023 distributions will be done at the County
Courthouse on Mission Road.
MINUTES
REGULAR MEETING
CITY COUNCIL
CITY OF SOUTH SAN FRANCISCO
WEDNESDAY, JANUARY 25, 2023
6:00 p.m.
HYBRID IN-PERSON/VIRTUAL MEETING
Municipal Services Building, Council Chambers
33 Arroyo Drive, South San Francisco, CA
Via Zoom
The City Council may meet by teleconference, consistent with the Brown Act as amended
by AB 361 (2021). Under the amended rules, the City will not provide a physical location
for members of the public to participate in the teleconference meeting.
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REGULAR CITY COUNCIL MEETING JANUARY 25, 2023
MINUTES PAGE 2
PRESENTATIONS
1. Proclamation recognizing January as National Slavery and Human Trafficking in the Bay
Area Month. (Flor Nicolas, Mayor)
Councilmember Addiego presented the proclamation to San Mateo County Human Trafficking
Program Coordinator, Pamela Estes. Coordinator Estes thanked Council and provided contact
information to report and prevent human trafficking.
2. Proclamation recognizing January as National Biotechnology Month. (Flor Nicolas, Mayor)
Mayor Nicolas presented the proclamation to Co-Founder of InterVenn Biosciences, Aldo
Carrascoso. Co-Founder Carrascoso thanked City Council and shared his experience in starting his
company while explaining how InterVenn Biosciences detects diseases. He concluded with
expressing his excitement in continuing his partnership with the City of South San Francisco
indefinitely.
3. Certificate recognizing Bimbo Bakeries USA for generous donation to enhance the December
2022 Holiday Food Distribution event. (Tamiko Huey, Management Analyst II)
Mayor Nicolas thanked Bimbo Bakeries for the generosity to the City of South San Francisco
throughout the years and shared the various events in which they have provided donations. She
presented the certificate to Plant Manager, Patrick Li, Senior Director, Carlos Quiros, and Associate,
Sheriel Pan.
Plant Manager of Bimbo Bakeries USA, Patrick Li thanked City Council and accepted the certificate.
He shared they have a good neighbor program which allows them to create a financial budget and
provide resources to support local organizations and community members. It has been their tradition
to participate in events and are happy to continue the tradition.
Councilmember Addiego recognized Bimbo Bakeries as a legacy business that has been successfully
operating for over 70 years.
PUBLIC COMMENTS
The following individuals provided public comment:
In-Person:
• Cory David
• Wendy Sinclair-Smith
Via Zoom:
• Tom Carney
• Anna
• Angelique Valdez
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REGULAR CITY COUNCIL MEETING JANUARY 25, 2023
MINUTES PAGE 3
COUNCIL COMMENTS/REQUESTS
Vice Mayor Nagales shared that he represented the City at the Board of Supervisors to speak about
our guaranteed income pilot program and thanked the staff that assisted with the presentation. Due to
the interest in our program, the County has created a subcommittee to explore the idea of creating a
county wide program. He also thanked Mayor Nicolas for putting together the Lunar New Year
celebration. Additionally, he shared that he is heartbroken over the tragedies and gun violence
throughout the Country. As a policy maker, he wishes to speak to staff to see what can be done. He
implores our leaders in Congress and in the Senate to act.
Councilmember Flores shared that he and Vice Mayor Nagales are on the Executive Board of the
Peninsula Division for the California League of Cities. They attended the New Mayor Academy and
shared how rewarding it was to see excitement regarding post elections. He also gave a shoutout to
public safety workers in the Police Department and Fire Department for their work in the month of
January. He thanked them not only for their response to the storm but for their professional response
to mental health issues. He requested to adjourn the meeting in memory of Jose Quintero, father of
Gabriel Quintero (Fire Department). Additionally, he asked to adjourn the meeting in memory of the
Monterey Park and Half Moon Bay victims. Lastly, he shared that there are fundraising mechanisms
for those who want to help to donate online, one being Ayudando a Latinos a Soñar (ALAS), which
is working closely with the families.
Councilmember Addiego encouraged Mayor Nicolas to set up a community meeting in response to
interest and several public comments regarding the Municipal Services Building to explore options
and ideas. Additionally, he noted that he wanted to discuss the Council Handbook in the near future
to visit the rotation of Mayor and Vice Mayor. Lastly, he asked to adjourn the meeting in memory of
retired City of South San Francisco employee, Nelson Yuk (WQCP).
Councilmember Coleman joined in adjourning the meeting in memory of the Half Moon Bay victims,
Zhishen Liu, Aixiang Zhang, Qizhong Cheng, Jingzhi Lu, Marciano Martinez Jimenez, Yetao Bing,
and Jose Romero Perez. He stated how heartbreaking it was to see another tragedy occur after the
Monterey Park shooting. He shared he would also like to explore to see what South San Francisco
can do to increase safety in our community surrounding gun violence.
Mayor Nicolas highlighted the collaboration between the City Manager’s Office and the Library
Department for the Lunar New Year Celebration. She shared that several scholarships are being
launched around this time of year and noted summer internships are also available. She stated
information regarding both could be found on her Facebook. Additionally, she expressed it was
heartbreaking to know that mass shootings occurred in our state. She stated gun violence must be
stopped and has no place in our society. She requested to have the meeting adjourned in memory of
the victims Half Moon Bay and Monterey Park. Lastly, she also requested to have the meeting
adjourned in memory of Harry Melvin Wolfe, father of Kamala Wolfe.
CONSENT CALENDAR
The Assistant City Clerk duly read the Consent Calendar, after which Council voted and engaged in
discussion of specific item as follows. Item No. 9, Item No. 11, Item No. 12, and Item No. 13 were
pulled for further discussion by Vice Mayor Nagales.
4. Motion to approve the Minutes for January 11, 2023. (Rosa Govea Acosta, City Clerk).
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REGULAR CITY COUNCIL MEETING JANUARY 25, 2023
MINUTES PAGE 4
5. Motion to authorize the Mayor to sign a letter urging State Legislators to amend the Brown
Act to provide increased local control over options for teleconference meetings. (Sharon
Ranals, Interim City Manager, and Sky Woodruff, City Attorney)
6. Report regarding Resolution No. 08-2023 authorizing the acceptance of approximately 1,000
units of baked goods (valued at $5,000) and $3,250 donation to the Fire Department from
Bimbo Bakeries USA to purchase food and gift cards for the annual Holiday Food Drive
Distribution. (Tamiko Huey, Management Analyst II)
7. Report regarding Resolution No. 09-2023 authorizing the acceptance of a donation of two
Police eBikes valued at $11,235.57 from Genentech, Inc., adding to the police fleet to be used
by C.O.T (Community Outreach Team). (Scott Campbell, Chief of Police)
8. Report regarding Resolution No. 10-2023 authorizing submittal of an application for the
Department of Resources Recycling and Recovery funds allocated through the State of
California in their fiscal year 2022-2023 budget in the amount of $16,369 to support beverage
container recycling programs in South San Francisco and authorizing the City’s fiscal year
2022-2023 revenue budget adjustment upon receipt of funds pursuant to budget amendment
23.041. (Marissa Garren, Management Analyst I)
9. Report regarding Resolution No. 14-2023 awarding a construction contract to Mercoza for the
CDBG - Curb Ramp Replacement Project (Project No. st2106, Bid No. 2674) in an amount
not to exceed $197,860.40 for a total budget of $250,000.00; (Angel Torres, Senior Civil
Engineer)
10. Report regarding Resolution No. 11-2023 to amend the Professional Services Agreement with
Maze and Associates Authorizing a One-Year Contract Extension for Professional Audit
Services for Fiscal Year 2022-23 (Paul Harris, Financial Services Manager)
11. Report regarding Resolution No. 15-2023 accepting a Congressionally Directed Spending
appropriations award in the amount of $1,500,000 for the South San Francisco Library, Parks
and Recreation Civic Campus Project and approving Budget Amendment # 23.042. (Christina
Fernandez, Deputy City Manager and Greg Mediati, Director of Parks and Recreation)
12. Report regarding a recommendation to rescind the award of a shuttle operations services
agreement to ACE Mobility Solutions and to award said agreement to Parking Company of
America, LLC for operations of the South San Francisco Community Shuttle. (Marissa
Garren, Management Analyst I)
12a. Resolution No. 16-2023 rescinding the award of a shuttle operations services agreement to
ACE Mobility Solutions for the amount of $350,000 for operations of the South San
Francisco Community Shuttle
12b. Resolution No. 17-2023 awarding a shuttle operations services agreement with Parking
Company of America, LLC in an amount not to exceed $350,000 for South San Francisco
Community Shuttle Operations
13. Report regarding Resolution No. 18-2023 approving a consulting services agreement with
Wilsey Ham, Inc. of San Mateo, California for design services of the Oyster Point Sanitary
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REGULAR CITY COUNCIL MEETING JANUARY 25, 2023
MINUTES PAGE 5
Sewer Pump Station Relocation (Project No. ss2202) in an amount of $760,000, authorizing
the City Manager to execute the agreement, and authorizing a design contingency in the
amount of $76,000 for unforeseen consulting scope of services for a total authorized design
budget of $836,000. (Matthew Ruble, Principal Engineer).
14. Report regarding Resolution No. 12-2023 approving and authorizing the City Manager to
execute a legal services agreement with Sher Edling LLP to join a lawsuit filed by the County
of San Mateo and other cities in the County against Monsanto to recover costs of remediating
PCB contamination. (Sky Woodruff, City Attorney)
15. Report regarding Resolution No. 13-2023 continuing to declare and ratify the existence of a
local emergency relating to major storm and flooding events. (Sharon Ranals, Interim City
Manager and Sky Woodruff, City Attorney)
The following individual provided public comment on Consent Calendar Item No. 7 and Item No. 13
• Tom Carney
Motion – Councilmember Addiego /Second – Councilmember Flores: To approve Consent
Calendar 4-8, 10, and 14-15 by roll call vote: AYES: Councilmembers Addiego, Coleman, and
Flores, Vice Mayor Nagales, and Mayor Nicolas; NAYS: None; ABSTAIN: None
Item No. 9: Vice Mayor Nagales inquired about improving the curb design as residents have
expressed concerns. He shared his appreciation for staff with informing residents of the construction
schedule.
Public Works Director Kim mentioned there are various federal and state standards and regulations
they need to abide by, however there is some discretion in how the City transitions into them.
Mayor Nicolas asked for clarification regarding non-responsive or disqualified bids. Public Works
Director Kim shared that this suggests that Contractors have not submitted the appropriate paperwork
for the proposal and may have not verified and reviewed all amendments.
Councilmember Flores inquired about the contingency percentage and the responsibility in notifying
residents. Public Works Director Kim provided an explanation and stated the Contractors are
responsible however the City works closely with them to ensure the notifications occur.
Item No. 11: Vice Mayor Nagales thanked Congresswoman Jackie Speier for assisting in obtaining
$1.5 million for our new Library Park & Recreation Civic Campus project. Mayor Nicolas joined in
thanking Congresswoman Speier.
Item No. 12: Vice Mayor Nagales inquired about the reasoning for rescinding the awarded contract
and if this would cause a delay in current services. He also asked if there if we have pursued funding
for additional services. Director Kim shared the vendor did not prepare a proposal in line with what
was shown and that there would be no delay in services.
Management Analyst Garren confirmed there was a miscalculation on the vendors end and stated that
the department plans on submitting an application to obtain additional funding for the current
transportation route as well as for a secondary route.
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REGULAR CITY COUNCIL MEETING JANUARY 25, 2023
MINUTES PAGE 6
Item No. 13: Mayor Nicolas inquired about the impact of delaying the design for the Oyster Point
Sanitary Sewer Pump Station. Additionally, she questioned the number of submittals for request for
proposals. Director Kim stated the existing pump is old, antiquated, and unreliable therefore
suggested replacing the pump as soon as possible.
Principal Engineer Ruble stated multiple engineering firms were contacted, however the feedback
received suggested the site complications and time of proposal deterred interest.
Motion –Vice Mayor Nagales /Second –Councilmember Flores: To approve Consent Calendar
9 and 11-13 by roll call vote: AYES: Councilmembers Addiego, Coleman, and Flores, Vice
Mayor Nagales, and Mayor Nicolas; NAYS: None; ABSTAIN: None
PUBLIC HEARING
Public hearing opened: 7:25 p.m.
16. Report regarding determinations under CEQA for the proposed Housing Element of the
General Plan for the period of 2023-2031 and adoption of the Housing Element in compliance
with state Housing Element Law. (Tony Rozzi, Chief Planner)
Chief Planner Rozzi provided a presentation on the proposed Housing Element of the General Plan.
The following individuals provided public comments:
In-Person:
• Cynthia Marcopulos
• Fionnola Villamejor
• Ethan Mizzi
Via Zoom:
• Kianna Simmons
• Noelle Langmack
• Tom Carney
• Angelina Soldatos
Public hearing closed: 8:16 p.m.
Councilmember Flores inquired about the intent of the language as some of it does not appear fully
binding. He also inquired about CRT 4.6, which states the City must set a minimum number of
affordable units as the program reads “up to 300 units”, and requests that the language be changed to
“at least 300 units”. Chief Planner Rozzi responded by noting that wherever possible, the intent of the
language is to facilitate a conversation between Council and residents resulting in direction for
changes and guidance.
Vice Mayor Nagales emphasized the recommendations added by City Council. Additionally, he
inquired about the language of EQ 3.4. He noted the significance of CRT 8.3 as the County is
interested in partnering to study and build Veteran’s Housing in the City of South San Francisco. He
asked that language be modified from “target minimum density” to “allow minimum density” in CRT
7.2. He also asked for clarification regarding the zoning for the parcel land of the Municipal Services
Building which was zoned for housing in 2017. Additionally, he inquired about the East of 101 traffic
impact fee.
Chief Planner Rozzi stated EQ 3.4 was a recommendation from a community advocate and should
read “evaluate and if directed”. He provided an overview of the Municipal Services Building (MSB)
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REGULAR CITY COUNCIL MEETING JANUARY 25, 2023
MINUTES PAGE 7
future use and designation.
City Attorney Woodruff stated under the Mitigation Fee Act, the funds have a legal limitation on how
they could be used to address the traffic impact East of 101, while the 2020 Citywide transportation
impact fee is more flexible and can be spent anywhere in the City.
Vice Mayor Nagales thanked staff and residents for the comments that were made and submitted. He
recognized that the City of South San Francisco is ahead in terms of their housing element and looks
forward to passing it.
Councilmember Flores asked for the Builders Remedy to be defined. Chief Planner Rozzi stated the
concept is the ability for the State to penalize a city for not adopting the zoning to make housing
possible.
Councilmember Coleman agreed with suggestions made by Councilmember Flores and Vice Mayor
Nagales to edit the appropriate sections of the proposed plan. He also asked for SB 330 to be
defined. Chief Planner Rozzi and City Attorney Woodruff provided a definition and overview of the
future use and development of the MSB.
16b. Resolution No. 19-2023 making findings and determination under California Environmental
Quality Act (CEQA) that the Housing Element Update for the Period of 2023-2031 is covered
by prior environmental analysis prepared for the Updated General Plan and there are no new
impacts not previously analyzed and is also exempt from CEQA under Section 15061(b)(3)
Motion –Councilmember Addiego /Second Vice Mayor Nagales: To approve Resolution No. 19-2023
by roll call vote: AYES: Councilmembers Addiego, Coleman, and Flores, Vice Mayor Nagales, and
Mayor Nicolas; NAYS: None; ABSTAIN: None
16a. Resolution No. 20-2023 adopting a General Plan Amendment (GPA23-0001) to repeal the
2015-2023 Housing Element and adopt the Housing Element for the Period of 2023-2031
in compliance with state housing element law.
Motion –Vice Mayor Nagales /Second – Councilmember Flores: To approve Resolution No. 20-2023
by roll call vote: AYES: Councilmembers Addiego, Coleman, and Flores, Vice Mayor Nagales, and
Mayor Nicolas; NAYS: None; ABSTAIN: None
ADMINISTRATIVE BUSINESS
17. Report regarding Resolution No. 21-2023 approving a Professional Services Agreement with
SmartWAVE Technologies to build a Community Wi-Fi Network in the Oldtown area of South
San Francisco. (Tony Barrera, Director of Information Technology)
Information Technology Director Barrera presented the report.
Councilmember Flores thanked Director Barrera for bridging the gap and including the community.
He asked if there was an opportunity to expand the area to additional schools. Additionally, he
inquired about what will happen beyond the pilot program and funds. He also suggested that surveys
be done periodically to capture the utilization of service. Director Barrera stated he could work with
School District to explore options. He also stated the department is in the process of developing a
Broadband Master Plan to discuss the community’s needs. He also stated they can explore additional
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REGULAR CITY COUNCIL MEETING JANUARY 25, 2023
MINUTES PAGE 8
means of funding upon the results of usage.
Councilmember Coleman inquired if coverage would be expanded to Orange Park. Director Barrera
shared that it would. Councilmember Addiego shared his excitement for the program and inquired if
the equipment is owned by the City in which Director Barrera stated we did. Director Barrera stated
the useful life for the equipment purchased is four to five years.
Mayor Nicolas stated the need not only for students but for economic mobility. She inquired about
the OAK Wifi experience. Kevin Brangers, President of SmartWAVE Technologies, shared that
Oakland saw the success implemented in San Jose in 2012 and decided to join months later. He shared
pilot areas are very successful in demonstrating the success of connectivity throughout the
community. Mayor Nicolas requested staff to contact the California Public Utilities Commission in
order to facilitate and expedite the request for the use of the 76 PG&E poles.
Motion – Councilmember Flores/Second Vice Mayor Nagales: To approve Resolution No. 21-2023
by roll call vote: AYES: Councilmembers Addiego, Coleman, and Flores, Vice Mayor Nagales, and
Mayor Nicolas; NAYS: None; ABSTAIN: None
ITEMS FROM COUNCIL – COMMITTEE REPORTS AND ANNOUNCEMENTS
Councilmember Flores shared that San Mateo Council of Cities would be hosting a joint event with
Peninsula Division and the Santa Clara Association of Cities hosted with the California Life Sciences
this Friday, January 27, 2023.
CLOSED SESSION
Entered into Closed Session: 8:43 p.m.
18. Closed Session
Public Employment
(Pursuant to Government Code Section 54957)
Title: City Manager
Resumed from Closed Session: 9:12 p.m.
Report out of Closed Session by Mayor Nicolas: Direction given. No reportable action.
ADJOURNMENT
Being no further business Mayor Nicolas adjourned the meeting in memory of Jose Quintero, Nelson
Yuk, Harry Melvin Wolfe, and the victims of the Half Moon Bay and Monterey Park shootings at
9:13 p.m.
Submitted by: Approved by:
Jazmine Miranda Buenaflor Nicolas
Assistant City Clerk Mayor
Approved by the City Council: / /
23
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-82 Agenda Date:2/8/2023
Version:1 Item #:3.
Report regarding a resolution accepting $5,003.67 from the South San Francisco Friends of the Library to
support library collections and programs in the New Main Library,and approving Budget Amendment #
23.044.(Valerie Sommer, Library Director)
RECOMMENDATION
It is recommended that the City Council adopt a resolution accepting $5,003.67 from the South San
Francisco Friends of the Library to support library collections and programs in the New Main Library,
and approving Budget Amendment # 23.044.
BACKGROUND/DISCUSSION
The South San Francisco Friends of the Library (FOL)has received a $5,000 donation from Summer Hill
Housing Group “in honor of City Manager Mike Futrell’s contribution to the City of South San Francisco”and
wish to use this donation,plus an additional $3.67 from previously identified FOL donations,to support New
Main Library collections and programs.Recent FOL donations to the New Main Library include $1,000,000 to
support third floor library services and $29,454.17 to support an opening day collection.This additional
$5,003.67 will be used for library collections and programs that will further enhance services at the new
facility.
FISCAL IMPACT
The Library Department’s 2022-23 general fund budget will be amended via Budget Amendment #23.044 to
reflect an increase from the donated funds from the South San Francisco Friends of the Library in the amount
of $5,003.67 .
RELATIONSHIP TO STRATEGIC PLAN
Building a New Main Library as part of the Community Civic Campus is an action item in the City Strategic
Plan under Priority #2:Quality of Life.This funding will support library collections and programs in our New
Main Library.
CONCLUSION
Acceptance of this resolution will support exciting and engaging collections and programs in our New Main
Library.It is recommended that the City Council accept $5,003.67 from the South San Francisco Friends of the
Library and approve Budget Amendment 23.044.
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-83 Agenda Date:2/8/2023
Version:1 Item #:3a.
Resolution accepting $5,003.67 from the South San Francisco Friends of the Library to support library
collections and programs in the New Main Library, and approving Budget Amendment # 23.044.
WHEREAS,the South San Francisco Friends of the Library (FOL)advocates for and supports the diversity of
library services, programs and collections; and
WHEREAS, the FOL has received a donation from Summerhill Housing Group for $5,000; and
WHEREAS, the FOL has identified an additional $3.67 from previous donations; and
WHEREAS,the FOL will donate a total of $5,003.67 to be used to support library collections and programs in
the New Main Library; and
WHEREAS,staff recommends the acceptance of the donation in the amount of $5,003.67 from the FOL to
support library collections and programs in the New Main Library; and
WHEREAS,the grant funds will be used to amend Fiscal Year (FY)2022-2023 Operating Budget of the
Library Department in order to reflect an increase of $5,003.67 via Budget Amendment # 23.044.
NOW,THEREFORE,BE IT RESOLVED,that the City Council of the City of South San Francisco does
hereby accept $5,003.67 in donations from the South San Francisco Friends of the Library,to support library
collections and programs in the New Main Library.
BE IT FURTHER RESOLVED,that the City Council approves Budget Amendment #23.044 to amend the
Library Department’s FY 2022-2023 Operating Budget in order to reflect an increase of $5,003.67.
BE IT FURTHER RESOLVED,that the City Council hereby authorizes the City Manager to execute the
documents necessary to accept the grant funding and take any other actions necessary to carry out the intent of
this resolution on behalf of the City Council, subject to approval as to form by the City Attorney.
*****
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-97 Agenda Date:2/8/2023
Version:1 Item #:4.
Report regarding a resolution making findings and declaring the property located at 367 Marina Boulevard
(APN 015-011-350)as surplus land and authorizing transmittal of a Notice of Availability.(Ernesto Lucero,
Acting Deputy Director, Economic and Community Development Department)
RECOMMENDATION
Staff recommends adopting a resolution making findings and declaring the property located at 367
Marina Boulevard as surplus land and authorizing transmittal of a Notice of Availability.
BACKGROUND
The City owns an approximately 4.7 acre site in Oyster Point within the Oyster Point Specific Plan which has
California Environmental Quality Act (“CEQA”)clearance for up to 350 rooms for a hotel development on the
site.The City Council approved the First Amendment to a Purchase and Sale Agreement (“PSA”)with hotel
developer,Ensemble Investments (“Ensemble”),on December 19,2022 for the disposition of the site for a full
service hotel development.As the deliverables within the PSA are still underway,the First Amendment
provides an extension of the closing date of an additional six months after the City has completed a required
statutory disposition process under the California Land Surplus Act.
On November 17,2022,the Planning Commission approved the design,Use Permit,draft Development
Agreement,and Transportation Demand Management Plan for the project,consisting of the new construction of
a 12-story,165 foot tall,350 room,261,000 square foot building,with 232 surface parking space and site
improvements,as well as the determination that the project is within the scope of the previously adopted
Programmatic EIR under CEQA Guidelines.
DISCUSSION
The Surplus Land Act (“SLA”),Government Code Section 54220,et seq.,as amended by Assembly Bill 1486
effective January 1,2020,provides that local public agencies must determine whether land owned by the public
agency is “surplus land”or “exempt surplus land,”and must send notices of the availability of surplus land to
specified parties prior to the disposition of such land.The City is the owner of a property located at 367 Marina
Boulevard,which as discussed above,is the site of a former municipal landfill.The City has long-intended to
convey the property to a third-party for development.
In accordance with the SLA,the City is required to follow a detailed statutory process prior to any disposition
of the property.The first step of the process is to declare the property “surplus land”and send notices of
availability (“NOA”)to certain specified parties,including the California Department of Housing and
Community Development (“HCD”).Adoption of the associated resolution will declare the property as “surplus
land”and will authorize staff to transmit the required NOAs in accordance with the procedures outlined in the
SLA.Interested parties have 60 days after the City transmits NOAs to notify the City of their desire to purchase
the property.If the City receives a notice of interest in the property,then the City is required to enter into a 90-
day good faith negotiation period beginning on the first day after the 60-day notice period ends.If the City and
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File #:23-97 Agenda Date:2/8/2023
Version:1 Item #:4.
day good faith negotiation period beginning on the first day after the 60-day notice period ends.If the City and
an interested party cannot agree on price and terms after the conclusion of the full 90-day good faith negotiation
period,then the City may dispose of the surplus land without further regard to the SLA.The City must send a
summary of the City’s actions in compliance with the SLA process to HCD prior to any such disposition.
FISCAL IMPACT
There is no fiscal impact associated with the proposed resolution.
RELATIONSHIP TO STRATEGIC PLAN
This item supports the City Council Strategic Goal of improving quality of life for the local economy and
residents.
CONCLUSION
The approval of the resolution will allow the City to meet its statutory requires under the SLA.The First
Amendment to the PSA with Ensemble will remain effective during the SLA process.The City will remain
committed to the disposition processes of the site.
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-87 Agenda Date:2/8/2023
Version:1 Item #:4a.
Resolution making findings and declaring the property located at 367 Marina Boulevard (APN 015-011-350) as
surplus land and authorizing transmission of Notices of Availability.
WHEREAS, the City is the owner of a property located at 367 Marina Boulevard (APN 015-011-350), which is
the site of a former municipal landfill; and
WHEREAS, the City has identified the property as a City-owned site that is suitable for disposition to a third-
party for development; and
WHEREAS, the City Council finds that the property is not needed for City use and is therefore declaring the
property “surplus land” in accordance with the definition of “surplus land” as provided in Section 102(x) of the
Surplus Land Act Guidelines; and
WHEREAS, the City intends to dispose of the property in accordance with the requirements of the Surplus
Land Act and therefore, authorizes staff to prepare and transmit Notices of Availability and commence the
required Surplus Land Act noticing period and associated 90-day good-faith negotiation period if notices of
interest are received.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of South San Francisco that
1.The foregoing recitals are true and correct and made a part of this Resolution; and
2.The City-owned property located at 367 Marina Boulevard is surplus land and is not necessary for City
use; and
3.The City Manager, or designee, is authorized to transmit Notices of Availability for the property in
accordance with the requirements of the Surplus Land Act; and
4.The City Manager is authorized to take any related action in furtherance of the intent of this Resolution.
City of South San Francisco Printed on 2/3/2023Page 1 of 1
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-92 Agenda Date:2/8/2023
Version:1 Item #:5.
Report regarding a resolution authorizing the acceptance of $20,500 in donations from the South San Francisco
Association of Firefighters Local 1507 Charity Foundation.(Jess Magallanes, Fire Chief)
RECOMMENDATION
It is recommended that the City Council adopt a resolution authorizing the acceptance of $20,500 in
donations from the South San Francisco Association of Firefighters Local 1507 Charity Foundation.
BACKGROUND/DISCUSSION
The Fire Department received a donation from the South San Francisco Association of Firefighters Local 1507
Charity Foundation,a local non-profit organization that supports various community efforts such as holding
breast cancer awareness programs,sponsoring burn victims’attendance at summer burn camps,hosting an
annual pancake breakfast to support the local Veterans of Foreign Wars,and assisting with the annual Holiday
Toy Drive.
In December 2022,Fire,Police and other City Departments provided gift cards to approximately 670 children
during the annual Holiday Food distribution.The overwhelming support from the community resulted in each
child receiving a $35 gift card allowing them to shop for a toy of their choice.
FISCAL IMPACT
Funds from the Local 1507 Charity Foundation will be used to offset the cost of purchasing Toy Drive gift
cards and other peripheral items,with any remaining monies being held as reserves to support like programs in
the future.
RELATIONSHIP TO STRATEGIC PLAN
Acceptance of these donations supports Strategic Plan Priority #2: Quality of Life.
CONCLUSION
It is recommended that the City Council adopt a resolution authorizing the acceptance of $20,500 in donations
from the South San Francisco Association of Firefighters Local 1507 Charity Foundation to support the annual
Holiday Toy Drive and similar future programs.
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-93 Agenda Date:2/8/2023
Version:1 Item #:5a.
Resolution authorizing the acceptance of $20,500 in donations from the South San Francisco Association of
Firefighters Local 1507 Charity Foundation.
WHEREAS,the Fire Department received a donation from the South San Francisco Association of Firefighters
Local 1507 Charity Foundation,a local non-profit organization that supports various community efforts,
including assisting with the annual Holiday Toy Drive and other volunteering efforts; and
WHEREAS,in December 2022,the Fire,Police and other City Departments provided gift cards to
approximately 670 children during the Holiday Food distribution wherein each child received a $35 gift card
allowing them to shop for a toy of their choice; and
WHEREAS,funds from the Local 1507 Charity Foundation will be used to offset the cost of purchasing Toy
Drive gift cards and peripheral items for the annual Holiday Toy Drive,and any remaining monies held as
reserves to support similar future programs.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of South San Francisco that the City
hereby accepts $20,500 in donations from the South San Francisco Association of Firefighters Local 1507 to
support the annual Holiday Toy Drive and similar future programs.
*****
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-101 Agenda Date:2/8/2023
Version:1 Item #:6.
Motion to accept Measure W Citizens’Oversight Committee report independently verifying Fiscal Year 2021-
22 Measure W revenues and expenditures.(Karen Chang,Director of Finance;and Sharon Ranals,Interim City
Manager)
RECOMMENDATION
It is recommended that the City Council move to accept the Measure W Citizens’Oversight Committee
report independently verifying Fiscal Year 2021-22 Measure W revenues and expenditures.
BACKGROUND/DISCUSSION
In November 2015,South San Francisco residents approved Measure W,a half-cent transaction and use tax.
Pursuant to the Measure W resolution adopted by the City Council,members of the South San Francisco
community were appointed to the Measure W Citizens’Oversight Committee (COC),and the City Council
adopted the COC bylaws.The COC bylaws establish that the COC will periodically report to the City Council
regarding the collection and expenditure of Measure W revenue.The bylaws direct the COC to meet with the
City’s independent auditor to receive the audit findings for the prior fiscal year’s collection and expenditure of
revenue from the tax authorized by Measure W and to report in writing to the City Council regarding the
accuracy of the auditors’ findings regarding Measure W revenues and expenditures.
During the 2021-2022 fiscal year (FY),COC conducted regular bi-monthly meetings to review Measure W
revenues and expenditures.COC also received periodic updates from the project teams on Measure W’s project
status.
On December 7,2022,the City’s auditor,Maze &Associates (Maze)provided COC an overview of the audit
and the draft Measure W financial results.On January 3,2023,the City provided a copy of the Annual
Comprehensive Financial Report FY 2021-22 to COC for review.On January 23,2023,the COC met and
adopted a resolution acknowledging receipt of the draft FY 2021-22 Annual Comprehensive Financial Report
and approving a memorandum to the City Council independently verifying use of Measure W funds.
The COC report,in the form of the COC resolution and memorandum (Attachment 1),independently verifies
that the City received $15.4 million in Measure W revenues and spent $11.5 million in expenditures in
accordance with the terms of Measure W for FY 2021-22.The COC’s report provides independent verification
regarding the independent auditor’s findings related to whether the funds collected are being spent in
accordance with the terms of Measure W.
CONCLUSION
On January 23,2023,the COC adopted a resolution acknowledging receipt of the draft FY 2021-22 Annual
Comprehensive Financial Report and approving a memorandum to the City Council independently verifying
the use of Measure W funds.The FY 2021-22 Annual Comprehensive Financial Report reviewed by the COC is
also attached (Attachment 2).Staff recommends City Council move to accept the Measure W Citizens’
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File #:23-101 Agenda Date:2/8/2023
Version:1 Item #:6.
Oversight Committee report independently verifying FY 2021-22 Measure W revenues and expenditures.
Attachments:
1.Measure W Oversight Committee resolution independently verifying use of Measure W funds.
2.Annual Comprehensive Financial Report FY 2021-22
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File Number: 23-67
City of South San Francisco
Measure W Citizens' Oversight Committee
Resolution: RES 01-2023
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
Enactment Number: RES 01-2023
RESOLUTION OF THE MEASURE W CITIZENS'
OVERSIGHT COMMITTEE ACKNOWLEDGING RECEIPT
OF THE DRAFT FISCAL YEAR 2021-22 ANNUAL
COMPREHENSIVE FINANCIAL REPORT AND
APPROVING MEMORANDUM TO THE CITY COUNCIL
INDEPENDENTLY VERIFYING USE OF MEASURE W
FUNDS
WHEREAS, the City of South San Francisco Measure W Citizens' Oversight Committee (COC)
received preliminary reports from the City of South San Francisco Finance Department regarding FY 2021-22
Measure W Revenues and Expenditures at a regular meeting of the COC on December 7, 2022; and
WHEREAS, Measure W revenues and expenditures, as stated in the audited draft Fiscal Year 2021-
22 Annual Comprehensive Financial Report, reconcile with the preliminary reports presented to the COC.
NOW, THEREFORE, BE IT RESOLVED that the Measure W Citizens' Oversight Committee does
hereby acknowledge receipt of the draft Fiscal Year 2021-22 Annual Comprehensive Financial Report.
BE IT FURTHER RESOLVED that the Measure W Citizens' Oversight Committee approves the
memorandum to City Council, attached as Exhibit A, which shall be transmitted through the City Manager's
Office at the next regular City Council Meeting, attesting to the following items:
1. Independently verify the accuracy of the audited reports regarding Measure W revenues and
expenditures for Fiscal Year 2021-22; and
2 . Independently confirm that Measure W funds collected were used in accordance with Measure W
ballot language in FY 2021-22.
* * * * *
At a meeting of the Measure W Citizens' Oversight Committee on 1/23/2023, a motion was made by
Committee member Zemke, seconded by Chair Del Rosario, that this Resolution be adopted. The motion
passed.
Yes: 4 Chairperson Del Rosario, Vice Chair DeGuzman, Brosnan, and Zemke
Absent: 1 Rey
C ity of South San Francisco
Attachment 1
33
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM
DATE: January 23, 2023
TO: Mayor, Vice Mayor and Councilmembers of the City of South San Francisco
FROM: Engy del Rosario, Chair, Measure W Citizens’ Oversight Committee
CC: Sharon Ranals, Interim City Manager
SUBJECT: Independent Verification of Fiscal Year 2021-22 Measure W Revenues and
Expenditures
Honorable Mayor, Vice Mayor, and Councilmembers,
The purpose of this memo is to inform the City Council of the City of South San Francisco that
the Measure W Citizens’ Oversight Committee acknowledges receipt of the Fiscal Year 2021-22
Annual Comprehensive Financial Report, independently verifies the accuracy of the audited
reports regarding Measure W revenues and expenditures for Fiscal Year 2021-22, and
independently confirms the Measure W funds collected were received and spent in accordance
with the Measure W ballot measure language in FY 2021-22.
Respectfully Submitted,
Engy del Rosario
Chair, Measure W Citizen’s Oversight Committee
DocuSign Envelope ID: 5FE6519B-5592-47FF-889F-3871B5D1710D Exhibit A
34
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2022
CITY OF SOUTH SAN FRANCISCO
CALIFORNIA
Attachment 2
35
36
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
Prepared by:
Department of Finance
37
This Page Left Intentionally Blank
38
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................... i
Letter of Transmittal ......................................................................................................................................... v
Certificate of Achievement for Excellence in Financial Reporting ............................................................... xii
Organization Chart ......................................................................................................................................... xiii
City Council and Directory of City Officials ................................................................................................ xiv
FINANCIAL SECTION
Independent Auditor's Report ...................................................................................................................... 1
Management’s Discussion and Analysis ....................................................................................................... 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position .................................................................................................................. 29
Statement of Activities ...................................................................................................................... 30
Fund Financial Statements:
Major Governmental Funds:
Balance Sheet ................................................................................................................................ 36
Reconciliation of Governmental Fund Balances to Net Position of Governmental Activities .... 38
Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................... 40
Reconciliation of the Net Change in Fund Balances Total Governmental Funds with
the Statement of Activities ........................................................................................................ 42
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual –
Budgetary Basis:
General Fund ....................................................................................................................... 43
Low and Moderate Income Housing Assets ....................................................................... 44
i 39
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
FINANCIAL SECTION (Continued)
Major Proprietary Funds:
Statement of Net Position .............................................................................................................. 46
Statement of Revenues, Expenses, and Changes in Fund Net Position ........................................ 47
Statement of Cash Flows ............................................................................................................... 48
Fiduciary Funds:
Statement of Fiduciary Net Position ............................................................................................. 50
Statement of Changes in Fiduciary Net Position .......................................................................... 51
Notes to Basic Financial Statements ...................................................................................................... 53
Required Supplementary Information:
Schedule of Changes in Net Pension Liability and Related Ratios –
Miscellaneous Plan ............................................................................................................ 106
Schedule of Contributions – Miscellaneous Plan ........................................................................ 107
Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan ...................... 108
Schedule of Contributions – Safety Plan ..................................................................................... 109
Schedule of Changes in the Net OPEB Liability and Related Ratios ......................................... 110
Schedule of Contributions – Retiree Healthcare OPEB Plan ...................................................... 111
Notes to Schedule of Employer Contributions ............................................................................ 111
Supplementary Information:
General Fund:
Combining Balance Sheets ............................................................................................................. 116
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balances ..................................................................................................................... 117
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balance Budget and Actual - (Non GAAP Legal Basis) ........................................... 118
ii 40
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
FINANCIAL SECTION (Continued)
Non-major Governmental Funds:
Combining Balance Sheet ............................................................................................................... 124
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances ..................................................................................................................... 128
Budgeted Non-major Government Funds:
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balances – Budget and Actual ................................................................................... 132
Internal Service Funds:
Combining Statement of Net Position ............................................................................................ 138
Combining Statement of Revenues, Expenses and Changes in Fund Net Position ....................... 139
Combining Statement of Cash Flows ............................................................................................. 140
Custodial Funds:
Combining Statement of Net Position ............................................................................................ 142
Combining Statement of Changes in Net Position ......................................................................... 143
STATISTICAL SECTION
Net Position by Component – Last Ten Fiscal Years .................................................................... 147
Changes in Net Position – Last Ten Fiscal Years .......................................................................... 148
Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................. 152
Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ................................ 154
Assessed Value of Taxable Property – Last Ten Fiscal Years ...................................................... 156
Direct and Overlapping Governments – Property Tax Rates
Last Ten Fiscal Years ................................................................................................................ 157
Principal Property Taxpayers – Current Year and Nine Years Ago .............................................. 159
Property Tax Levies and Collections – Last Ten Fiscal Years ...................................................... 160
iii 41
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
STATISTICAL SECTION (Continued)
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................ 161
Computation of Direct and Overlapping Debt ............................................................................... 162
Computation of Legal Bonded Debt Margin ................................................................................. 163
Revenue Bond Coverage Sewer Rental Enterprise Fund – Last Ten Fiscal Years ....................... 164
Sewer Debt Service Coverage Sewer Rental Enterprise Fund – Last Seven Fiscal Years............ 165
Redevelopment Pledged Revenue Coverage – Last Nine Fiscal Years ......................................... 166
Demographic and Economic Statistics – Last Ten Fiscal Years ................................................... 167
Principal Employers – Current Year and Nine Years Ago ............................................................ 168
Full-Time Equivalent City Governmental Employees by Function – Last Ten Fiscal Years ....... 169
Operating Indicators by Function/Program – Last Eight Fiscal Years .......................................... 170
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ......................................... 171
Miscellaneous Information – Last Four Fiscal Years .................................................................... 172
iv 42
December 28, 2022
Honorable Mayor and Members
of the City Council
City of South San Francisco
South San Francisco, California
We are pleased to submit the Annual Comprehensive Financial Report (ACFR) for
the City of South San Francisco (the City) for the fiscal year (FY) ended June 30,
2022. The City of South San Francisco is required to publish a complete set of
financial statements presented in conformance with generally accepted accounting
principles (GAAP) and audited by an independent, certified public accounting firm.
This report is published to fulfill this requirement for the fiscal year ending June 30,
2022.
The report presents the finances of the City of South San Francisco. Management
assumes full responsibility for the completeness and fairness of the information
presented in this report. To the best of our knowledge and belief, the enclosed data
is accurate in all material respects and is reported in a manner designed to present
fairly the financial position and results of operations of the various funds of the City.
All disclosures necessary to enable the reader to gain an understanding of the
City’s financial activities have been included.
This report consists of management’s representations concerning the finances of
the City. To provide a reasonable basis for making these representations,
management established a comprehensive internal control framework designed to
both protect the City’s assets from loss, theft, or misuse, compiled sufficient
reliable information for the preparation of the City’s financial statements in
conformity with the Generally Accepted Accounting Principles (GAAP), and
complied with applicable laws and regulations.
CITY COUNCIL 2022
FLOR NICOLAS, MAYOR (DIST. 3)
MARK NAGALES, VICE MAYOR (DIST. 2)
MARK ADDIEGO, MEMBER (DIST. 1)
JAMES COLEMAN, MEMBER (DIST. 4)
EDDIE FLORES, MEMBER (DIST. 5)
MIKE FUTRELL, CITY MANAGER
v 43
The City contracted with Maze & Associates (Maze), a public accounting firm
licensed to perform local government audits in California, to complete the annual
audit. Maze concluded that the financial statements present fairly the respective
financial position of the government activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City, and the
respective changes in financial position, and where applicable, cash flows for the
year ended June 30, 2022, in accordance with GAAP. This is a favorable
conclusion and is commonly referred to as an unmodified opinion.
The independent audit of the City’s financial statements is part of a broader,
federally mandated “Single Audit” designed to meet the needs of federal grantor
agencies. The standards governing Single Audit engagements require the
independent auditor to report not only on the fair presentation of the City’s financial
statements, but also on the City’s internal controls and compliance with legal
requirements, with special emphasis on internal controls and legal requirements
involving the administration of federal awards. Maze will issue the Single Audit in
March of 2023.
GAAP requires that management provide a narrative introduction, overview, and
analysis to accompany the basic financial statement in the form of the
Management’s Discussion & Analysis (MD&A). This letter of transmittal is
designed to complement the MD&A and should be read in conjunction with it. The
MD&A is located immediately following the report of the independent auditor in the
financial section.
CITY PROFILE
The City of South San Francisco proudly remains the Industrial City, a reflection of
its steel mill and shipbuilding past, redefined to reflect the innovative,
entrepreneurial, and industrious spirit which has made South San Francisco the
Biotech Capital of the World, with over 250 active biotech companies and growing.
The City of South San Francisco encompasses approximately 9.5 square miles
and has a population of 66,105. The City employs approximately 500 full-time
regular employees and is a full-service city which includes public safety (police,
fire and paramedics), libraries, parks, cultural and recreational activities, senior
citizen services, public works, public improvements, engineering, planning,
building regulation, economic development, drainage, street lighting, and general
administrative services. Sewer service, downtown parking operations, and storm
water management are accounted for in the City’s enterprise funds. The
Conference Center Authority is included in the financial statements by discrete
presentation – that is, the Authority’s financial data is reported in a column
separate from the financial data of the City. Water and solid waste services are
provided by private entities.
vi 44
South San Francisco was incorporated and became a general law city of the State
of California on September 19, 1908. The form of government is the Council-
Manager plan. Each Councilmember serves a term of four years, with a rotating
Mayor chosen by majority vote of the Council, for a term of one year. The Council
appoints the City Manager and City Attorney. The City Manager is responsible for
carrying out the policies and ordinances of the City Council, for overseeing the
day-to-day operations of the City and appointing department directors.
The offices of City Clerk and City Treasurer are elected and will remain at-large.
The incumbent City Clerk, Rosa Govea Acosta, and City Treasurer, Frank Risso,
were elected for another term in the November 2022 election.
This report includes all financial activities of the City of South San Francisco,
including financial information for the City, as the primary government, and for its
component units, for which the City is considered financially accountable. The
blended component units include the City of South San Francisco Capital
Improvements Financing Authority, the Parking Authority of the City of South San
Francisco, and the City of South San Francisco Public Facilities Financing
Authority. The South San Francisco Conference Center is a discretely presented
component unit and is included because of the significance of its governing,
operational, and/or financial relationships with the City. The Successor Agency that
was created due to the Redevelopment Agency dissolution is also included in this
report.
ASSESSING THE CITY’S ECONOMIC CONDITION
The City of South San Francisco continued to demonstrate its resilience and
strength during Fiscal Year (FY) 2021-22 following a particularly challenging prior
year in which the COVID-19 pandemic took hold and impacted all sectors of
society and the economy at the national, state and local levels. Restrictions on
travel continued to be loosened as FY2021-22 began, bringing about a substantial
recovery in the year in Transient Occupancy Tax (TOT) to above 70% of pre-
pandemic levels, up from 39% in the prior year, as well as Commercial Parking
Tax collected from San Francisco airport and the surrounding hotels. The upward
trend in TOT went hand-in-hand with a strong recovery in sales tax revenue as
shopping and spending patterns also continued to return to normal. This recovery
and various revenue streams enabled the City to re-open and expand classes and
services to residents and subsequently unfreeze employee vacancies, thereby
driving an increase in expenditures.
vii 45
The resilience of local businesses and residents was bolstered by assistance
programs provided by the City during the COVID-19 pandemic. These continued
into FY2021-22, with new ones beginning during the year, and included the
Guaranteed Basic Income pilot program (utilizing American Rescue Plan Act
funding) whereby 160 City residents received $500 per month for a year, the
Rental Assistance program for residential tenants facing pandemic-related
economic hardship, the opening of the Economic Advancement Center on Grand
Avenue to assist individuals with job placement, training and business start-up,
and creation of the Business Façade and Tenant Improvement program to help
local businesses improve storefronts and American Disabilities Act (ADA)
compliance.
Development within the City continued apace during FY2021-22 with multiple new
housing units coming online and new developments added to the pipeline.
Significant work continued through the year with the biotech development at Oyster
Point, and the Southline project to develop a 28-acre site for office space and
biotech research and development on the City’s southern border gained
considerable traction (target completion in 2024).
The City further demonstrated its strong emergence from the pandemic through its
ambitious Capital Improvement Plan (CIP) with twenty new projects budgeted in
the fiscal year alone including the $78 million bond-funded portion of the
Community Civic Campus construction project, the $24 million bond-funded street
rehabilitation projects and the $2 million bond-funded solar roof at the City’s
Corporation Yard. A capital project to replace the City pool complex was also
included in the CIP plan, the outreach and design of which began during the year.
The bonds to fund the new pool complex were issued in June 2022 in readiness
for the forthcoming construction phase. Also, during FY2021-22, the new Police
Station and new Caltrain Station were both opened and became fully operational,
and work on the Colma Creek Storm Water capture project and the Sports Fields,
both located at Orange Memorial Park, neared completion by year end.
In June 2022, the City issued its third tranche of lease revenue bonds, taking
advantage of a very favorable interest rate environment. The bond proceeds will
fund multiple CIP projects, including the aforementioned city pool complex (Aquatic
Center), and replacement of the sports fields, playground and Colma Creek
bridges at Orange Memorial Park.
viii 46
The General Fund is the main fund of the City, accounting for principal revenues
including taxes, licenses and permits, charges for services, grants and interest
income, as well as expenditures related to delivery of public services by City
departments such as Police, Fire, Public Works, Parks and Recreation, Library and
Administrative Services. Performance of this fund is viewed as the main barometer
of the financial health of the City. Compared to the prior year, FY 2021-22 General
Fund revenues (excluding transfers in from other funds and special items)
increased by $17.4 million, or 14.1%. This significant increase is mainly driven by
greater TOT, sales tax, commercial parking tax and charges for service revenues,
all as a result of the City emerging and recovering from the COVID-19 pandemic.
In November 2015, voters in the City passed Measure W, which increased the
sales tax rate within the City by 0.50%. The tax is deposited into the City's General
Fund and will be used to pay for City services. This tax revenue is primarily used
to pay the debt on bonds or other financings to accelerate projects. In February
2020, the City issued $43.9 million of lease revenue bonds to finance the design
and construction of a new Police facility which became fully operational in January
2022. In June 2021, the City issued $86.4 million in lease revenue bonds for the
construction of a new Civic Center Campus, installation of a solar roof at the City’s
Corporation Yard and funding of the City’s Road Rehabilitation program.
Furthermore, in June 2022, the City issued $65.4 million in lease revenue bonds
to fund the construction of a new Aquatic Center and ballfields at Orange Memorial
Park, and the replacement of a playground and two bridges over Colma Creek,
also at Orange Memorial Park.
MAJOR CITY SPONSORED INITIATIVES
The City completed the following major construction projects in FY 2021-22,
improving the City’s infrastructure, facilities and enhanced business processes
with contemporary technology:
•Pavement Management Program – 2020 Surface Seal & Rehab projects
•Pump station #2 Upgrade
•Linden Avenue Street Improvements – Aspen to Miller
•Signalize Commercial and Spruce Intersection
•WQCP Plant-wide Industrial re-coat project
•Orange Memorial Park Storm Water Capture project
•New Police Operations Center
•Caltrain Station
ix 47
FINANCIAL INFORMATION
The City Council is required to adopt a final budget by passing a budget resolution
no later than June 30th, following a public hearing process. This annual budget
serves as the foundation for the City’s financial planning and control. The budget
is prepared by fund, function and department. The legal level of budgetary control
is at the fund level. The City Manager is authorized to transfer budgeted amounts
between departments and line items within any fund. Any revisions that alter the
total expenditures of any fund must be approved by the City Council. Transfers
between funds must be approved by the City Council. At the end of the fiscal year,
encumbered appropriations are carried forward and become part of the following
year’s budget while appropriations that have not been encumbered lapse, unless
otherwise authorized by the City Council and the City Manager.
In developing and appraising the City’s accounting system, consideration is given
to the adequacy of internal accounting controls. Internal accounting controls are
designed to provide reasonable but not absolute assurance regarding: (1) the
safeguarding of assets against loss from unauthorized use or disposition; (2) the
reliability of financial records for preparing financial statements and maintaining
accountability for assets; and (3) transactions being properly executed in
accordance with management’s authorization.
The concept of reasonable assurance recognizes that: (1) the cost of a control
should not exceed the benefits likely to be derived; and (2) the evaluation of costs
and benefits requires estimates and judgments by management.
Basic characteristics of sound internal accounting control include segregation of
accounting duties, approval of accounting transactions, and regular reconciliation
of detail and control records.
All internal control evaluations occur within this framework. We believe that the
City’s internal accounting controls adequately safeguard assets and provide
reasonable assurances of proper recording of financial transactions.
In February 2020, S&P Global Ratings assigned an issuer credit rating of triple A
(“AAA”) to the City. AAA is the highest rating possible and is important as higher
ratings generally results in lower borrowing costs and the City was able to benefit
from this in its FY 2020-21 bond issuance. S&P re-affirmed this rating prior to the
FY 2021-22 bond issuance. The AAA rating is a good indicator of the City's strong
financial position, solid executive management, fiscally sound policies and
practices, and responsible budgetary performance.
The City’s Reserve Policy is aligned with the Government Finance Officers
Association (GFOA) best practices recommendation for reserves, setting aside 15-
20 percent of operating revenues.
x 48
OTHER INFORMATION
Award
The City’s ACFR for the fiscal year ended June 30, 2021, received a Certificate of
Achievement for Excellence in Financial Reporting from the Government Finance
Officers Association. The award signified the report’s attainment of easily readable
and efficiently organized content and satisfaction of generally accepted accounting
principles and legal requirements. The award is valid for a period of one year only.
However, the City believes that this current report continues to conform to program
eligibility requirements.
Acknowledgments
The preparation of the ACFR was made possible by the dedicated services of the
entire staff of the Finance Department and our auditors. Each member of the
department has our sincere appreciation for the contributions made in the
preparation of this report. Special thanks are extended to Finance Services
Managers, Paul Harris and Jennifer Clemente, and Senior Accountant Steven Lew
for their commitment and diligence in the preparation of this document.
Furthermore, we would like to thank the City Council for its leadership and
commitment to ensuring the long-term fiscal health of the City.
Respectfully submitted,
____________________________ __________________________
Karen Chang Mike Futrell
Director of Finance City Manager
obo
xi
I, DocuSigned by:
~CB~
49
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of South San Francisco
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
xii 50
Citizens of South San Francisco
City Council
City Clerk
Rosa Govea Acosta
City Treasurer
Frank Risso
City Manager
Mike Futrell
City Attorney
Sky Woodruff
Assistant to the City
Manager
Christina Fernandez
Administrative Departments Operating Departments
Fire Chief
Jess Magallanes
Public Works Director
Eunejune Kim
Library Director
Valerie Sommer
Econ. & Comm. Development
Director
Nell Selander
Chief of Police
Scott Campbell
Human Resources Director
Leah Lockhart
Finance Director
Karen Chang
Assistant City Manager/Chief
Sustainability Officer
Sharon Ranals
Communications Director
Leslie Arroyo
Mark Nagales (District 2), Mayor
Buenaflor Nicolas (AT LARGE), Vice Mayor
Mark Addiego (AT LARGE), Member
James Coleman (District 4), Member
Eddie Flores (AT LARGE), Member
Information Technology
Director
Tony Barrera
Capital Projects Director
Jacob Gilchrist
Dep. Capital Projects Director
Philip Vitale Parks and Recreation
Director
Greg Mediati
xiii 51
City Council & Directory of Officials*
City Council
Mark Nagales (District 2) Mayor
Buenaflor Nicolas (AT LARGE) Vice Mayor
Mark Addiego (AT LARGE) Councilmember
James Coleman (District 4) Councilmember
Eddie Flores (AT LARGE) Councilmember
Elected Officials
Rosa Govea Acosta City Clerk
Frank Risso City Treasurer
Appointed Officials
Mike Futrell City Manager
Sharon Ranals Assistant City Manager
Karen Chang Finance Director
Leslie Arroyo Communications Director
Scott Campbell Chief of Police
Tony Barrera Information Technology Director
Jacob Gilchrist Capital Projects Director
Nell Selander Deputy Economic & Community Development Director
Leah Lockhart Human Resources Director
Jess Magallanes Fire Chief
Eunejune Kim Public Works Director
Valerie Sommer Library Director
Greg Mediati Parks & Recreation Director
Budget Subcommittee
Mark Addiego
Buenaflor Nicolas
*As of October 31, 2022
xiv 52
INDEPENDENT AUDITOR’S REPORT
Honorable Members of the City Council
City of South San Francisco, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of South San
Francisco (City), California, as of and for the year ended June 30, 2022, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
Table of Contents.
We did not audit the discretely presented component unit financial statements of the South San Francisco
Conference Center Authority (Authority), which represents 0.64%, 0.82%, and 1.08%, respectively, of the
assets, net position, and revenue of the primary government. Those financial statements were audited by
other auditors, whose report thereon has been furnished to us and our opinion, insofar as it relates to the
amounts included for the Authority, is based solely on the report of the other auditors.
In our opinion, based on our audit and report of the other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the governmental activities, the
business-type activities, the discretely presented component unit, each major fund, and the aggregate
remaining fund information of the City as of June 30, 2022, and the respective changes in financial position
and, where applicable, cash flows thereof and the respective budgetary comparisons listed in the Table of
Contents as part of the basic financial statements for the year 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 Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirement 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 these 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 the financial statements that are free from material misstatement, whether due to fraud or
error.
1 53
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 City’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.
Auditor’s 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 auditor’s report that
includes our opinion. 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, individually or in the aggregate,
they could reasonably be expected to 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 City’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 City’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.
Change in Accounting Principles
Management adopted the provisions of Governmental Accounting Standards Board Statement No. 87,
Leases, which became effective during the year ended June 30, 2022 and had material effects on the
financial statements as discussed in Note 1T to the financial statements.
The emphasis of this matter does not constitute a modification to our opinions.
2 54
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis and other Required Supplementary Information as listed in 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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in
the Table of Contents, 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 Information
Management is responsible for the other information included in the annual report. The other information
comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not
include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form of assurance
thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
3 55
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 27,
2022, on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is 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 City’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 the
City’s internal control over financial reporting and compliance.
Pleasant Hill, California
December 27, 2022
4 56
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
The Management’s Discussion and Analysis (MD&A) provides an overview of City of South San
Francisco’s financial activities and fiscal performance for the year ended June 30, 2022. Please read
this in conjunction with the accompanying Transmittal Letter and Basic Financial Statements to
obtain a complete picture of the City’s financial condition.
FINANCIAL HIGHLIGHTS
Total Net Position for Governmental activities in FY 2021-22 increased by $64.7 million, or
19.5%, from $332.1 million in the prior year, to $396.8 million. The increase is primarily due to
further investment in City assets through bond issuance, an increase in cash and investments due
to stronger revenues in the year, as well as a greater restricted cash balance due to the 2022A
bond issuance prior to year-end. The growth in assets of $146.5 million is partially offset by a
$66.3 million increase in long-term debt liabilities but this offset is reduced by lower “other
liabilities” ($47.6 million lower than prior year) due to a significant drop in the net pension
liability at year-end.
Total Net Position for Business-Type activities in FY 2021-22 increased by $7.1 million, or
5.4%, from $130.8 million in the prior year, to $137.9 million. The growth in Net Position is
due to a $10 million increase in capital assets due to construction work underway at the City’s
Water Quality Control Plant (WQCP), lower accounts payable at year-end and a drop in the net
pension liability. This is partially offset by lower cash and investments, and accounts receivable
balances at year-end.
City-wide Net Pension Liability to CalPERS for FY 2021-22 decreased by $60.9 million, or
29.7%, from $205.3 million in the prior year to $144.4 million. This significant decrease in
liability was driven by revised actuarial valuations from CalPERS taking into account member
contributions and strong investment earnings in FY2020-21.
City-wide cash and investments at year end increased $5.5 million, or 2.1%, from $259.3 million
in the prior year to $264.8 million. This reflects the underlying strength in the local economy as
the City continued to rebound from the impacts of the COVID-19 pandemic.
Revenues from Governmental Activities (excluding transfers and special items) increased by
$37.7 million, or 22.7%, to $203.9 million in FY 2021-22 from $166.2 million in the prior year.
Revenues from Business-Type Activities (excluding transfers and special items) partially offset
this with a decrease of $5.4 million, or 13.3%, to $35.2 million in FY2021-22 from $40.6 million
in the prior year.
Expenses from Governmental Activities (excluding transfers and special items) increased by
$2.4 million, or 1.8%, to $134.8 million in FY2021-22 from $132.4 million in the prior year due
to a greater amount of interest paid on debt (due to additional bonds having been issued in the
prior year). Expenses from Business-Type Activities decreased slightly by $0.2 million, or 0.7%,
to $28.7 million compared to $28.9 million in the prior year.
5 57
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Property tax revenues categorized under Governmental Activities dropped in FY 2021-22 by
$1.6 million, or 3.8%, to $40 million from $41.6 million in the prior year. This was primarily
due to a reduction in the amount of tax received from the Educational Revenue Augmentation
Fund (ERAF) which has historically been a volatile revenue source related to the split of basic
and non-basic aid schools in the county of San Mateo.
Sales tax increased by $5.1 million, or 15.5% to $38.1 million in FY 2021-22 from $33.0 million
in the prior year. This represents the return to normal spending patterns for the local population
as the City continued its recovery during the FY 2021-22 from the COVID-19 pandemic.
Transient Occupancy Tax (“TOT”) was the most dramatically impacted revenue category during
the height of the pandemic due to the restrictions on travel and shelter-in-place orders. By the
beginning of FY 2021-22, these had largely been removed allowing this revenue category to
rebound significantly. TOT revenue almost doubled to $12.1 million, an increase of $5.4 million,
or 80.6%, from $6.7 million in the prior year. Total TOT receipts for the year rose to
approximately 70% of pre-pandemic levels indicating there is still some way to go in the
recovery.
Revenue from Property Taxes in Lieu, otherwise known as the California Vehicle Licensing Fee
(VLF), more than doubled to $12.0 million in FY 2021-22 from $4.9 million in the prior year,
an increase of $7.1 million or 144.9%. This is a volatile revenue source that is difficult to predict
and the increase was partially due to a change in the ratio of basic aid to non-basic aid school
districts in San Mateo County which affects the availability of VLF. Part of the variance is due
to the City being allocated $3.7 million in additional VLF in FY2021-22 as a result of a county-
wide reimbursement from the state for a VLF shortfall in the prior year.
Total revenues from the City’s Sewer Enterprise decreased $5.4 million, or 16.0% to $28.4
million from $33.8 million in the prior year. This was largely due to lower sewer charge
revenues which, for FY2021-22, are based on the 2020 calendar year. Commercial water usage
dropped considerably during 2020 as workers remained at home during the pandemic and
reduced water usage means less sewer effluent volume on which commercial businesses are
charged. Water conservation drives by many businesses further led to reduced overall water
usage and resulting sewer effluent volumes. The City’s Parking Enterprise experienced a $0.2
million, or 30.0%, increase in revenues to $1.0 million in FY2021-22 compared to $0.8 million
in the prior year due to a greater level of parking activity as shoppers returned to the City
following removal of pandemic-related restrictions.
6 58
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
This Annual Comprehensive Financial Report (ACFR) 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;
5) Other Supplementary Information including combining statements for non-major
governmental funds, internal service funds, custodial funds and other budgetary information;
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 of the City’s programs. The Statement of Activities provides a detailed explanation of the
change in net position 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
distinct activities of the City.
The Fund Financial Statements report the City’s operations in more detail than the government-wide
statements. The Governmental Fund Financial Statements focus primarily on the short-term
activities of the City’s General Fund and other Major Funds and measure only current revenues,
expenditures, and fund balances; they exclude capital assets, long-term debt and other long-term
amounts. The Proprietary Fund Financial Statements focus on the Business-Type “enterprises” of
the City, i.e. activities that are accounted for in a similar way to private sector organizations using
the full accrual basis, thereby including both short-term and long-term elements.
7 59
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
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.
The Fiduciary Fund Financial 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:
Governmental activities - All of the City’s basic services are considered to be governmental
activities, including General Government, Fire, 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 and South San Francisco Public Facilities Financing
Authority, as the City Council also governs these entities.
Business-Type Activities - All the City’s enterprise activities are reported here, including
Wastewater treatment (or Sewer), 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.
City-wide financial statements are prepared on the accrual basis, which means they measure the
flow of all economic resources of the City as a whole and account for revenues when due and
expenses when incurred.
8 60
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Fund Financial Statements
The Fund Financial Statements provide detailed information about each of the City’s most
significant funds, called Major Funds. 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 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 means
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 and
include all their assets, liabilities and deferred outflows/inflows of resources, 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 city-wide financial statements and any related profits or losses
are returned to the activities which created them, along with any residual net position 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 Fund Financial 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
The following analyses focus on the net position and changes in the City’s Governmental Activities
(Tables 1 through 3, and Chart 1) and Business-Type Activities (Tables 4 and 5), which are
presented in the city-wide Statement of Net Position and Statement of Activities. The comparative
results for FY 2021-22 are presented versus FY 2020-21.
9 61
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Governmental Activities
Net position may serve over time as a useful indicator of the City’s financial condition. Table 1
below shows that total assets and deferred outflows of resources exceed the total liabilities and
deferred inflows of resources as of June 30, 2022 for Governmental Activities:
Governmental Net Position
Table 1
Governmental Net Position at June 30
(In Millions)
As shown in table 1, the total net position for Governmental Activities increased by $64.7 million
in FY 2021-22 compared to the prior year, reflecting significant increases in assets. Cash and
investments increased by $10.7 million. Other assets, which includes receivables, properties held
for redevelopment, and restricted cash and investments, increased by $53.2 million due to proceeds
received from issuance of an additional bond for construction of a new Aquatic Center and various
other CIP projects at Orange Memorial Park. Capital assets increased by $82.6 million due to a large
increase in Construction-In-Progress related to the new Civic Center Campus and multiple other
Capital Improvement Plan (CIP) projects. Pursuant to GASB 75 and GASB 68 requirements,
respectively, the City, as in prior years, recognized the Net OPEB liability of $52.3 million and Net
Pension Liability of $129.9 million attributable to Governmental Activities.
Increase / (Decrease)
2022 2021 Amount %
Cash and investments 239.8$ 229.1$ 10.7$ 4.7%
Other assets 201.9 148.7 53.2 35.8%
Capital assets 465.7 383.1 82.6 21.6%
Total assets 907.4 760.9 146.5 19.3%
Total outflows of resources 28.8 31.2 (2.4) (7.7%)
Total outflow of resources 28.8 31.2 (2.4) (7.7%)
Long‐term debt outstanding 223.8 157.5 66.3 42.1%
Other liabilities 253.4 301.0 (47.6) (15.8%)
Total liabilities 477.2 458.5 18.7 4.1%
Deferred inflows of resources 62.1 1.6 60.5 3781.3%
Total deferred inflow of resources 62.1 1.6 60.5 3781.3%
Net position:
Net investment in capital assets 452.7 316.1 136.6 43.2%
Restricted 139.0 160.2 (21.2) (13.2%)
Unrestricted (194.9) (144.2) (50.7) 35.2%
Total net position 396.8$ 332.1$ 64.7$ 19.5%
10 62
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
The following table shows the changes in net position for Governmental Activities:
Table 2
Expense and Program Revenue Comparison in Governmental Activities
(In Millions)
Increase / (Decrease)
2022 2021 Amount %
Revenues
Program revenues:
Charges for services 66.7$ 44.9$ 21.8$ 48.6%
Operating grants and contributions 10.9 8.0 2.9 36.3%
Capital grants and contributions 3.3 5.5 (2.2) (40.0%)
Total program revenues 80.9$ 58.4$ 22.5$ 38.5%
General revenues:
Taxes:
Property taxes 40.0$ 41.6$ (1.6)$ (3.8%)
Sales taxes 38.1 33.0 5.1 15.5%
Transient occupancy taxes 12.1 6.7 5.4 80.6%
Other taxes 11.5 9.1 2.4 26.4%
Property taxes in l ieu 12.0 4.9 7.1 144.9%
Investment earnings (6.7) 0.9 (7.6) (844.4%)
Miscellaneous 16.0 11.6 4.4 37.9%
Total general revenues 123.0$ 107.8$ 15.2$ 14.1%
Total revenues 203.9$ 166.2$ 37.7$ 22.7%
Expenses
General government 20.8$ 19.6$ 1.2$ 6.1%
Fire department 28.5 34.5 (6.0) (17.4%)
Police department 35.7 33.4 2.3 6.9%
Public Works 7.5 7.6 (0.1) (1.3%)
Parks and Recreation 19.5 17.1 2.4 14.0%
Library 6.1 6.3 (0.2) (3.2%)
Economic and Community Development 12.0 11.7 0.3 2.6%
Interest on long‐term debt 4.7 2.2 2.5 113.6%
Total expenses 134.8$ 132.4$ 2.4$ 1.8%
Excess / (deficiency) before transfers 69.1$ 33.8$ 35.3$ 104.4%
Special Item (3.0) (1.4) (1.6) 114.3%
Transfers (1.4) (5.0) 3.6 (72.0%)
Change in net position 64.7 27.4 37.3 136.1%
Net position ‐ beginning 332.1 304.7 27.4 9.0%
Net position ‐ ending 396.8$ 332.1$ 64.7$ 19.5%
11 63
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
As shown in table 2, total Governmental revenues (excluding transfers and special items) increased
by $37.7 million, or 22.7%, compared to the prior year. A significant increase in Charges for
Services specifically contributed to the greater revenue – this category accounted for $21.8 million
of the increase and largely consists of impact fees such as the Park Land Acquisition Fee, the Park
Construction Fee, the East of 101 Traffic Impact Fee and the Childcare Impact Fee. These are fees
paid by developers on new development projects within the City and revenue levels can vary
depending on the timing of such projects. There was also an increase in revenue, accounted for in
Charges for Services, from facility rentals, and childcare and aquatic programs offered by the City
during the year mainly due to the City’s recovery from the COVID-19 pandemic. The recovery also
gave rise to a $5.4 million increase in TOT and $5.1 million increase in Sales Tax as travel
restrictions were removed, hotel occupancy rates increased and consumer spending patterns
normalized. An increase in revenue was also seen in Property taxes in lieu ($7.1 million), otherwise
known as the California Vehicle Licensing Fee (VLF) due to a change in the ratio of basic aid to
non-basic aid school districts in San Mateo County which affects the availability of VLF, and a $3.7
million allocation from the state (distributed by the County) related to a shortfall in VLF in FY2020-
21. Investment earnings fell by $7.6 million to -$6.7 million, compared to the prior year, due to a
downward trend in the stock and bond markets brought about rising inflation and subsequent rises
in interest rates. The annual mark-to-market adjustment required by Governmental Accounting
Standards Board (GASB) accounting standard #31 results in the recognition of this temporary
change in value of the City’s investments.
Chart 1 shows the distribution of revenues from Governmental Activities by category.
Chart 1
Revenues by Source - Governmental Activities FY 2021-22
12 64
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Governmental program expenses increased by $2.4 million, or 1.8%, in comparison to the prior year.
Increases were seen in most departments partially due to higher salary and benefit costs as positions
were unfrozen during the year but also due to increased spending on operational supplies in response
to expanded public services provided as the City continued to recover from the pandemic. Interest
on long-term debt increased to $4.7 million, from $2.2 million in the prior year, due to repayments
beginning on the 2021A bonds which were issued to pay for construction of the new Civic Center
Campus.
Table 3 illustrates the difference between program revenues and program expenses. Program
revenues consist of capital and operating grants and contributions, and fees for services. General
City revenues, such as property taxes, sales taxes, transient occupancy taxes, licenses and permits,
and investment earnings, cover the shortfall between program revenues and program expenses.
Table 3
Net (Expense) / Revenue from Services
Governmental Activities
(In Millions)
In FY 2021-22, the net expense for governmental activities decreased by $20.1 million from $74.0
million to $53.9 million, due to a $2.4 million increase in Governmental program expenses, as
previously discussed, and a $22.5 million increase in program revenues primarily in charges for
services which includes developer impact fees.
Increase / (Decrease)
2022 2021 Amount %
General government (11.2)$ (9.8)$ (1.4)$ 14.3%
Fire department (20.7) (28.3) 7.6 (26.9%)
Police department (32.0) (31.0) (1.0) 3.2%
Public works department 17.3 21.4 (4.1) (19.2%)
Recreation and community services (15.9) (15.3) (0.6) 3.9%
Library (4.4) (2.0) (2.4) 120.0%
Economic and community development 17.7 (6.8) 24.5 (360.3%)
Interest on long‐term debt (4.7) (2.2) (2.5) 113.6%
Total (53.9)$ (74.0)$ 20.1$ (27.2%)
13 65
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Business-Type Activities
Table 4 shows that total assets and deferred outflows of resources exceed the total liabilities and
deferred inflows of resources as of June 30, 2022 for Business-Type Activities:
Table 4
Business-type Net Position at June 30 (in Millions)
The total net position for Business-Type Activities increased by $7.1 million, or 5.4%, compared to
the prior year. Total assets increased slightly by $1.6 million, or 0.7%, reflecting increases of capital
assets related primarily to construction in the Water Quality Control Plant (WQCP) Wet Weather
and Digester Improvements project, the rehabilitation of the WQCP secondary clarifiers and the
Orange Memorial Park Stormwater capture project. This was offset somewhat by lower cash
balances due to reduced sewer charge revenues as previously discussed, and a lower receivables
balance. Total liabilities, on the other hand, decreased by $10.7 million due to a lower accounts
payable balance at year end and a $6.1 million lower net pension liability due to substantial gains
made during the measurement period. Similar to Governmental Activities and pursuant to GASB
75 and GASB 68 requirements, respectively, the City, as in prior years, recognized the Net OPEB
liability of $5.8 million and Net Pension Liability of $14.4 million attributable to Business-Type
Activities.
Increase / (Decrease)
2022 2021 Amount %
Cash and Investments 25.0$ 30.2$ (5.2)$ (17.2%)
Other assets 5.1 8.3 (3.2) (38.6%)
Capital assets 196.4 186.4 10.0 5.4%
Total assets 226.5 224.9 1.6 0.7%
Deferred outflows related to pension/OPEB 3.2 3.4 (0.2) (5.9%)
Total Deferred outflow of resources 3.2 3.4 (0.2) (5.9%)
Long‐term liabilities outstanding 57.5 57.6 (0.1) (0.2%)
Other liabilities 29.1 39.7 (10.6) (26.7%)
Total liabilities 86.6 97.3 (10.7) (11.0%)
Deferred inflows related to pension/OPEB 5.3 0.2 5.1 2550.0%
Total deferred inflow of resources 5.3 0.2 5.1 2550.0%
Net position:
Net investment in capital assets 133.6 123.6 10.0 8.1%
Restricted 0.0 0.0 0.0 0.0%
Unrestricted 4.3 7.2 (2.9) 100.0%
Total net position 137.9$ 130.8$ 7.1$ 5.4%
14 66
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Table 5 below shows the changes in net position for Business-Type Activities:
Table 5
Change in Business-Type Activities Net Position
(In Millions)
Expenses from Business-Type Activities in FY2021-22 decreased slightly by $0.2 million to $28.7
million while total revenues (program and general revenues combined) also decreased, more
significantly, by $6.3 million to $34.4 million. The total change in net position was an increase of
$7.1 million after transfers compared to the $16.8 million increase in net position in the prior year.
Despite lower revenues in FY2021-22 and a negative mark to market in investment earnings,
control of expenses and reduced transfers out to other funds helped to ensure an increase in net
position, albeit a lower increase than in the prior year.
Increase / (Decrease)
2022 2021 Amount %
Expenses
Sewer Enterprise 26.2$ 26.7$ (0.5)$ (1.9%)
Parking District 1.2 1.3 (0.1) (7.7%)
Storm Water 1.3 0.9 0.4 44.4%
Total expenses 28.7 28.9 (0.2) (0.7%)
Revenues
Program Revenues
Charges for Services 24.2 25.8 (1.6) (6.2%)
Operating and Capital grants and contributions 11.0 14.8 (3.8) (25.7%)
Total program revenues 35.2 40.6 (5.4) (13.3%)
General revenues
Investment earnings (0.8) 0.1 (0.9) (1700.0%)
Total general revenues (0.8) 0.1 (0.9) (1700.0%)
Excess (deficiency) before transfers 5.7 11.8 (6.1) (51.5%)
Transfers 1.4 5.0 (3.6) (72.0%)
Change in net position 7.1 16.8 (9.7) (57.6%)
Net position ‐ beginning 130.8 114.0 16.8 14.7%
Net position ‐ ending 137.9$ 130.8$ 7.1$ 5.5%
15 67
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
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 condition.
Unrestricted fund balance is a major indicator of designated and uncommitted resources available
for spending in future fiscal years.
At June 30, 2022, the City’s Governmental Funds reported combined fund balances of $343.7
million, an increase of $33.6 million, or 10.8%, compared to the prior year. This was primarily due
to the creation of new governmental funds for the capital improvement projects at Orange Memorial
Park funded by the series 2022A bond issuance. The General Fund ending fund balance, which
includes Measure W, was $76.6 million, reflecting an increase of $0.9 million, or 1.2%, over the
prior year primarily due to stronger revenues in most major revenue categories.
Total Governmental Fund revenues (excluding transfers and special items) increased by $35.6
million, or 21.4%, from $166.2 million to $201.8 million, with increases in all categories except
interest and rentals, licenses and permits and other revenues. Property tax, sales tax, TOT and
intergovernmental revenues all saw increases of at least $5 million in each category with charges
for services rising by $22.6 million mainly due to greater impact fee receipts from various
development projects in progress throughout the City.
Total Governmental Fund expenditures (excluding transfers and special items) increased by $30.2
million, or 14.7%, from $206.1 million in the prior year to $236.3 million in FY 2021-22, primarily
due to increased project expenditures for the new Civic Center Campus, partially offset by reduced
expenditures on the Police station which was completed during the year. In addition, most
departments saw increases in expenditures as public services expanded during the year as the
recovery from the pandemic continued and vacant positions were unfrozen. Debt service increased
by $6.9 million due to repayments beginning for the 2021A bond issuance. Capital outlay expenses
of $5.5 million were also incurred related to the purchase of land for the new fire station at 71
Camaritas Avenue.
Comparison of General Fund 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 expenditures
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 (including Measure W). Changes between the adopted and final
budgets are shown and explained in table 6:
16 68
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Comparison of General Fund (excluding transfers) Final Budgets to Original Adopted
Budget (in Thousands)
Table 6
Original Final Pct Discussion:
Revenues Budget Budget Change Change (Items of more than 5% and $100,000 variance)
Property taxes 41,075$ 41,075$ -$
Sales taxes 32,239 32,989 750 2.3%
Transient occupancy taxes 7,085 8,585 1,500 21.2%
Travel industry continued to recover strongly from the
COVID-19 pandemic leading to higher hotel occupancy
rates and upward budget revision
Other taxes 3,615 3,615 -
Franchise Fee 4,600 4,600 -
Intergovernmental 2,325 5,820 3,495 150.3%
Reflects multiple federal, state and local grants applied for
during the year, adjustments for General Plan update, fire
rescue vehicles, Colma Creek project work, the Economic
Advancement Center and various other projects
Interest and rentals 3,565 3,505 (60) -1.7%
Licenses and permits 16,453 16,453 -
Charges for services 9,287 7,848 (1,439) -15.5%
Lingering effects of the COVID-19 pandemic on child care,
classes and facility rentals leading to a decision to revise
the budget downwards during the mid-year review
Fines and forfeitures 677 677 -
Other 233 394 161 69.1%Multiple small donations received during the year leading
to upward budget revision
Total 121,154$ 125,561$ 4,407$ 3.6%
Original Final Pct Discussion:
Expenditures Budget Budget Change Change (Items of more than 5% and $100,000 variance)
City Council 292$ 292$ -$
City Clerk 1,152 1,231 79 6.9%
City Treasurer 160 160 -
City Attorney 910 910 -
City Manager 3,608 4,512 904 25.1%Roll over of purchase orders related to General Plan
update, incentive pay adjustment
Finance 3,808 4,386 578 15.2%
Accounts for various purchase orders carried over from the
previous FY, e.g. ERP replacement project consultant,
incentive pay adjustment
Non-Departmental 1,294 1,369 75 5.8%
Human Resources 2,042 2,307 265 13.0%
Roll over of purchase orders related to summer jobs for
youth program and MOU labor negotiations, employee
incentive pay adjustment
Economic and Community
Development 8,228 16,293 8,065 98.0%
Roll over of purchase orders from the previous year for
plan review and building inspection services, General Plan
update and work related to the Economic Advancement
Center
Fire 29,508 29,892 384 1.3%
Police 32,388 32,844 456 1.4%
Public Works 5,978 6,396 418 7.0%
Roll over of purchase orders from the previous year plus
adjustments for employee incentive pay, part-time workers
for graffiti remediation and free South City shuttle outreach
Library 6,222 6,898 676 10.9%Adjustments for appropriations of multiple state and local
grants received for Library programs
Parks and Recreation 16,729 18,372 1,643 9.8%
Adjustments for appropriations of local grants received
during the year, roll over of purchase orders from the
previous year, adjustments for additional vehicles, concert
in the park, breezeway improvements, master arts plan
and employee incentive pay
Total 112,319$ 125,862$ 13,543$ 12.1%
17 69
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Analysis of Major Governmental Funds
General Fund
In FY 2021-22, total General Fund revenues, excluding transfers in, were $140.9 million which was
$15.3 million, or 12.2% higher than the final amended budget. Total General Fund expenditures,
excluding transfers out and including encumbrances, ended FY 2021-22 at $129.5 million which
was $3.7 million, or 2.9%, higher than final budget due to overspends in various departments and
carry over of a significant number of purchase orders.
As of June 30, 2022, the General Fund total fund balance was $76.6 million, $11.9 million of which
was attributable to Measure W. Of the remaining fund balance, $25.1 million was held in reserve in
accordance with city policy which is aligned with the Governmental Finance Officers Association
(GFOA) recommended reserve practice of between 15-20 percent of General Fund operating
revenue. The remaining $39.6 million was held in designation/reserve accounts for various purposes
including unassigned fund balance (available for operational use), encumbrances (committed
expenditure items), capital projects and land held for development.
Revenues. Property tax collections in FY 2020-21 were $49.8 million, which was $8.7 million or
21.2% over final budget. This was mainly due to higher-than-expected Vehicle Licensing Fee (VLF)
payments which included an additional $3.7 million allocated to the City by the state in relation to
a VLF shortfall in the prior year.
Sales tax revenue, including Measure W, was $37.8 million, which was $4.8 million or 14.5% over
final budget, reflecting the City’s strong recovery from the COVID-19 pandemic.
Transient occupancy taxes totaled $12.1 million for the year, which was $3.6 million, or 41.4%,
over final budget. This category was budgeted conservatively due to the expected lingering impacts
of the pandemic on the hospitality industry seen in the prior year. However, travel rebounded quickly
leading to high hotel occupancy rates and considerably higher final collections than budget. By way
of contrast, pre-pandemic TOT levels were approximately $17 million (FY2018-19).
Intergovernmental revenues were $3.2 million which is $2.6 million, or 45.1%, lower than final
budget mainly due to the timing of receipt of various grants, many of which are on a reimbursement
basis so it depends on progress of projects during the year.
Licenses and permits revenues were $14.1 million, which was $2.4 million or 14.5% under final
budget. This category can be very difficult to budget since receipts depend on the timing of
development projects within the City.
Charges for services was $9.7 million, which was $1.9 million or 24.2% above budget. This category
was revised downward during the mid-year review due to lower than expected receipts at the time
for classes, rentals and child care but the year ended much stronger than expected and exceeded the
original budget.
18 70
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Measure W revenue increased by $2.0 million, or 15.1%, from $13.4 million in FY2020-21 to $15.4
million in FY 2021-22 and exceeded budget by $2.7 million primarily due to the City’s strong
continued recovery from the COVID-19 pandemic.
Expenditures. Higher than expected expenditures in the Fire department are primarily payroll-
related, particularly in overtime due to regular staff working additional hours to cover unfilled
vacancies. To a lesser extent, the Police department also saw payroll-related expenditures exceed
budget but this was partially offset by underspends in supplies and services. The Non-Departmental
category was over budget due to a one-time transfer to the City Benefits Fund to address a deficit in
the fund. These overspends were offset by savings in other departments, including Finance, Library
and Economic and Community Development. Compared to the prior year, General Fund
expenditures, excluding transfers and including encumbrances, increased from $114.5 million to
$129.2 million. This was driven by the recovery from the pandemic and the commensurate return
to a more normal level of services to residents which led to more staffing and operational
expenditures. Versus final budget, the General Fund ended the year with a $3.7 million unfavorable
variance.
Low and Moderate Income Housing Assets 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 Housing Successor 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.
As of June 30, 2022, the fund balance was $3.0 million, a slight reduction from $3.2 million at the
end of the prior year. In FY 2021-22, the City Housing Fund received $0.1 million in revenues. The
fund had $0.3 million in expenditures, $0.1 million of which was for rental assistance to households
severely impacted by the COVID-19 pandemic and $0.2 million for administrative staff costs to
support the City’s Housing Division.
19 71
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
American Rescue Plan Act Fund
In response to the COVID-19 pandemic, the federal government passed the American Rescue Plan
Act (ARPA) in March 2021 which included financial aid to be provided to cities. The City of South
San Francisco was awarded $12.3 million in ARPA funds, received in two equal tranches in June
2021 and June 2022. During FY 2021-22, $1.1 million was spent on the Guaranteed Income Pilot
Program and other minor projects to support communities impacted by the pandemic. $2.6 million
was also transferred to the General Fund to replace revenues lost as a direct result of pandemic
impacts. ARPA funds are held as unearned revenue on the balance sheet, netting off against the cash
balance, and recognized as revenue as project expenditures are incurred. This results in a zero fund
balance at year end.
Capital Improvement Funds
The City consolidates and reports its governmental fund-type capital project expenditures in these
funds. 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. From time to time and when financially feasible and prudent to do so, the
City issues bonds which generate proceeds for large-scale public facility projects. In addition to the
bond issuances in FY2019-20 for the new Police station (series 2020A) and in FY2020-21 for the
Civic Center Campus (series 2021A), the City issued $65.4 million in bonds to fund the construction
of the new Aquatic Center and ballfields at Orange Memorial Park as well as the replacement of the
playground and two bridges over Colma Creek also at Orange Memorial Park (series 2022A). Entire
capital projects are appropriated in one-year, but expended over multiple years, with unspent
appropriations carried forward year-to-year until completion. In FY 2021-22, combined ending fund
balance for Capital Improvement Funds (excluding Impact Fee Funds) was $149.7 million which
increased $12.8 million from the combined ending fund balance of $130.9 million in the prior year.
The increase was due to the issuance of the $65.4 million series 2022A bonds which generated
proceeds for projects which was largely offset by the spending down of the series 2020A bond
proceeds as the new Police Station neared completion during the year, and the series 2021A bond
proceeds as the Civic Center Campus construction continued apace.
Developer Impact Fees Capital Projects Funds
To ensure developers pay their fair share of the impact of new developments on the City’s capital
and infrastructure, the City imposes impact fees. As South San Francisco emerged from the COVID-
19 pandemic during FY2021-22, the City continued to experience a robust development
environment that accounted for significant collection of developer impact fees including $1.0
million in East of 101 Sewer Impact Fees to be used for capital projects to maintain the sewer
collection and treatment facilities serving the east of 101 area. This fund experienced an overall $0.8
million increase during the year in fund balance from $4.1 million to $4.9 million.
20 72
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
The City also received $7.1 million in Traffic Impact Fees from developers to be used for expanded
roadway and intersection improvements serving the east of 101 area. After the effect of the negative
mark-to-market of city investments and transfer out of $6 million to fund CIP projects, the fund
balance increased slightly to $24.8 million from $24.5 million in the prior year.
Childcare impact fees in the amount of $7.7 million were also received in the year from developers.
These funds will be used for new and expanded childcare facilities in the City. As a result of these
receipts, fund balance climbed to $13.9 million in FY 2021-22 from $7.1 million in the prior year.
Other Governmental Funds
Presented as a group in the Basic Financial Statements, these funds are individually presented as
Supplementary Information.
In addition to the impact fees classified as major funds in FY 2021-22 discussed previously, it’s
worth noting that other impact fee funds, presented as non-major funds, also received considerable
developer payments during the year owing to the high level of development activity in the City. This
includes $4.0 million in Park Construction Impact Fees which will be used for the improvements
and construction of City-park facilities, $3.4 million in Commercial Linkage Impact Fees which
will be used to provide affordable housing and to support the City’s adopted 2015-2023 Housing
Element, $1.7 million in Public Safety Impact Fees to be used for new and expanded public safety
capital facility projects and equipment, $1.7 million in Park Land Acquisition Fees to be used to
acquire land for parks within the City, and $14.0 million in Oyster Point Development Impact Fees
to be used for interchange projects in the Oyster Point area.
Enterprise Funds
Sewer Enterprise Fund
The Sewer Enterprise fund reported operating revenue (before non-operating revenues and
operating transfers) of $28.4 million in FY2021-22, a decrease of $5.4 million, or 16.0%, from $33.8
million in the prior year. This substantial reduction in revenue is a direct impact from the COVID-
19 pandemic during which many commercial locations closed for long periods of time resulting in
substantially less water usage and therefore smaller sewer effluent volumes on which service
charges are based. This was combined with an overall drive by large commercial sites within the
City to conserve water which subsequently reduces service charge revenues. Since charges are
always based on the prior year water use, revenues for FY2021-22 were lower than normal.
Operating expenses decreased $0.3 million, or 1.0%, from $ 26.1 million to $25.8 million, due to
lower payroll-related expenses from vacancies, partially offset by increases in professional services,
program supplies and utilities.
21 73
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Parking District Fund
In FY 2022, the Parking District fund reported an operating loss (before non-operating revenues and
operating transfers) of $0.2 million which was a reduction on the loss in the prior year of $0.6 million.
Operating revenues increased by $0.2 million, or 30.0%, from $0.8 million to $1.0 million, primarily
due to increased usage of parking meters as businesses opened up as the City continued to recover
from the pandemic and shoppers returned in their cars to the downtown area. Operating expenses
decreased by $0.1 million, or 12.5%, from $1.3 million to $1.2 million due to lower professional
services expenses.
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 $0.4 million, which is flat
compared to the prior year, primarily from a levy on property owners. Transfers in from other funds
totaled $0.9 million - $0.2 million from the General Fund and $0.7 million from non-Major
Governmental Funds. A total of $5.3 million in grant reimbursements was received during the year
from the state in relation to the Orange Memorial Park storm water capture CIP project. Operating
expenses in this fund totaled $1.3 million, an increase of $0.4 million, or 42.0%, from $0.9 million
in the prior year, primarily due to higher payroll-related expenditures. Net position increased $5.4
million from $11.5 million to $16.8 million, largely due to the grant received, and year-end accruals
for additional grant reimbursements for work completed during the year.
22 74
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
CAPITAL ASSETS
Generally accepted accounting principles require the City to add infrastructure to its reportable
capital assets. Infrastructure includes streets, drainage systems, and traffic control and safety devices.
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 Position. Such information is
summarized below and is more completely detailed in Note 3 to the Basic Financial Statements. The
City depreciates all of its capital assets, except land and construction in progress.
At June 30, 2022, the City had $662.1 million in capital assets (as shown in table 7 below), net of
depreciation, representing a substantial increase of $92.6 million from the prior year, driven
primarily by in-progress construction projects such as the new Civic Center Campus.
The City’s various capital asset types used in Governmental and Business-Type Activities, are
illustrated in Table 7:
Table 7
Capital Assets (in Millions) at June 30
Increase / (Decrease)
2022 2021 Amount %
Governmental Activities:
Land 72.2$ 66.7$ 5.5$ 8.2%
Buildings and improvements 97.4 97.4 0.0 0.0%
Equipment and vehicles 24.8 24.5 0.3 1.2%
Furniture and fixtures 2.6 2.6 0.0 0.0%
Infrastructure ‐ streets 205.6 200.9 4.7 2.3%
Infrastructure ‐ traffic control devices 12.6 12.6 0.0 0.0%
Infrastructure ‐ storm drains 8.9 8.9 0.0 0.0%
Construction in progress 241.9 160.4 81.5 50.8%
Less accumulated depreciation (200.3) (190.9) (9.4) 4.9%
Totals 465.7$ 383.1$ 82.6$ 21.6%
Business‐Type Activities
Land 0.8$ 0.8$ ‐$ 0.0%
Buildings and improvements 80.1 80.1 0.0 0.0%
Clean water facilities and transmission line 79.9 79.9 0.0 0.0%
Infrastructure ‐ storm drains 6.2 6.2 0.0 0.0%
Infrastructure ‐ streets 7.4 7.4 0.0 0.0%
Equipment and vehicles 18.5 18.5 0.0 0.0%
Construction in progress 84.0 68.9 15.1 21.9%
Less accumulated depreciation (80.5) (75.4) (5.1) 6.8%
Totals 196.4$ 186.4$ 10.0$ 5.4%
Total City 662.1$ 569.5$ 92.6$ 16.3%
23 75
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
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 shown in table 8 (excluding
unamortized bond premiums):
Table 8
Outstanding Debt
(In Millions) at June 30
In June 2022, the City of South San Francisco Public Facilities Financing Authority issued $65.4
million in lease revenue bonds, Series 2022A, for the construction of the new Aquatic Center and
ballfields, and the replacement of the playground and two bridges over Colma Creek at Orange
Memorial Park. The City received a total of $72.1 million in proceeds from this issuance, of which
$49 million, $12.3 million, $2.2 million and $1.5 million was allocated to the four projects
respectively, and $7.1 million reserved for capitalized interest and fees.
Outstanding debt for Business-Type Activities remained static when compared to the prior year
since the $5.1 million drawdown against the State Water Resources Board loan was equivalent to
the amount of the loan retired during FY 2021-22.
The largest remaining debt obligations are as follows:
- 1999, 2004, 2008 State Water Resources Control Board Loans – Original debt:
$78.144.286; 2.4% to 2.6% interest rate; due 8/1/22, 4/30/26, 7/15/28. These loans
were used to improve and expand the City’s Water Quality Control Plant (WQCP).
Loan proceeds were issued as projects progressed. Debt service payment commenced
one year after project completion. WQCP user fees support the debt service payments.
Because of the regional benefits and equity interest in these projects, the City of San
Bruno shares in the loan repayments for the first two of the four current loans.
Increase / (Decrease)
Governmental Activities 2022 2021 Amount %
Lease Revenue Bonds 191.6$ 129.4$ 62.2$ 100.0%
Plus: Unamortized Bond Premium 33.2 27.6 5.6 100.0%
Loan payable to Successor Agency 2.2 3.6 (1.4) (38.9%)
Capital leases 0.1 0.3 (0.2) (66.7%)
Total Governmental Activities Outstanding Debt 227.1$ 160.9$ 66.2$ 41.1%
Business ‐type Activities
State Water Resources Board loans 60.8$ 60.5$ 0.3$ 0.5%
2005 Sewer Bonds 2.0 2.3 (0.3) (13.0%)
Total Business‐type Activities Outstanding Debt 62.8$ 62.8$ ‐$ 0.0%
24 76
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
- 2018 State Water Resources Control Board Loan - Original debt: $53,403,000; 1.8%
interest rate; due October 3, 2042. The loan proceeds are being used for the WQCP
Wet Weather and Digester project. Loan proceeds have been issued over time as
projects progressed. Debt service payments are due to commence on October 3, 2023,
one year after project completion. WQCP user fees support the debt service payments.
- 2020A Lease Revenue Bonds - Original debt: $43,905,000; premium received:
$10,242,530; 4 - 5% interest rate; due June 1, 2046. The bonds were used for Phase I
of the Civic Center Campus project consisting of the planning and construction of a
new Police Station and Dispatch Center for the City of South San Francisco. Measure
W sales tax revenue will fund the repayments.
- 2021A Lease Revenue Bonds - Original debt: $86,410,000; premium received:
$18,116,565; 4% interest rate; due June 1, 2046. $78,000,000 of the bond proceeds are
to be used for Phase II of the Civic Center Campus project consisting of the design and
construction of the new library, parks and recreation center, council chambers and
landscaping of the immediate surrounding area. $24,000,000 will be used for road
pavement rehabilitation throughout the City, and $2,000,000 will be used for solar roof
installation at the City's Corporation Yard. Measure W sales tax revenue will fund the
repayments.
- 2022A Lease Revenue Bonds - Original debt: $65,420,000; premium received:
$6,686,317; 4-5.25% interest rate; due June 1, 2046. $49,000,000 of the bond proceeds
are to be used for construction of the new Aquatic Center. $12.3 million will be used
for constructions of new ballfields. $2.2 million will be used for replacement of the
playground at Orange Memorial Park. $1.5 million will be used for replacement of two
bridges over Colma Creek at Orange Memorial Park. Measure W sales tax revenue will
fund the repayments.
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 Annual Comprehensive 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 addressed to the City of South San Francisco, Finance Department, P.O. Box 711, South
San Francisco, CA 94083.
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78
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF NET POSITION AND
STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial
activities and financial position.
The Statement of Net Position reports the excess of the City’s total assets and deferred outflows of
resources over the City’s total liabilities and deferred inflows of resources, including all the City’s capital
assets and all its long-term debt. The Statement of Net Position focuses the reader on the composition of
the City’s net position, by subtracting total liabilities and deferred inflows of resources from total assets
and deferred outflows of resources.
The Statement of Net Position summarizes the financial position of all the City’s Governmental Activities
in a single column, and the financial position of all the City’s Business-Type Activities in a single
column; these columns are followed by a total column which presents the financial position of the entire
City.
The City’s Governmental Activities include the activities of its General Fund, along with all its Special
Revenue, Capital Projects and Debt Service Funds. Since the City’s Internal Service Funds service these
Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund
transactions and balances. The City’s Business Type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared
on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of
when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial
statements, which reflect only current assets, current liabilities, available revenues and measurable
expenditures.
The Statement of Activities presents the City’s expenses first, listed by program, and follow these with
the expenses of its business-type activities. Program revenues—that is, revenues which are generated
directly by these programs—are then deducted from program expenses to arrive at the net expense of each
governmental and business-type program. The City’s general revenues are then listed in the
Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net
Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City, the City of South San Francisco Capital
Improvements Financing Authority, the Parking Authority of the City of South San Francisco and the
City of South San Francisco Public Facilities Financing Authority that are legally separate but are
component units of the City because they are controlled by the City, which is financially accountable for
the activities. Data for the South San Francisco Conference Center Authority is reflected as a discretely
presented component unit of the City. This data is presented separately from other funds of the City to
reflect operations under control of a governing body with a voting majority which is different from the
City Council.
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80
Component Unit
Primary Government South San Francisco
Governmental Business-Type Conference
Activities Activities Total Center
ASSETS
Cash and investments (Note 2)$239,818,986 $25,001,166 $264,820,152 $3,374,045
Receivables:
Accounts 22,031,560 5,539,679 27,571,239 239,569
Accrued interest 656,639 67,683 724,322
Loans 3,253,202 3,253,202
Due from Conference Center 40,379 40,379
Leases (Note 10)14,653,121 14,653,121
Internal balances (Note 4A)630,000 (630,000)
Deposits 309,790 309,790 17,042
Inventory 4,099 4,099
Prepaid items 1,204,373 1,204,373
Restricted cash and investments (Note 2)144,307,312 182,446 144,489,758
Properties held for redevelopment (Note 1N)14,763,033 14,763,033
Capital assets (Note 3):
Nondepreciable 314,107,786 84,778,042 398,885,828
Depreciable, net accumulated depreciation 151,587,263 111,599,962 263,187,225 3,656,555
Total Assets 907,367,543 226,538,978 1,133,906,521 7,287,211
DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 7)23,087,021 2,565,225 25,652,246
Related to OPEB (Note 9)5,669,372 629,930 6,299,302
Total Deferred Outflows of Resources 28,756,393 3,195,155 31,951,548
LIABILITIES
Accounts payable 21,665,787 590,727 22,256,514 148,705
Accrued salaries and benefits 1,766,827 1,766,827 49,167
Accrued interest payable 690,006 210,916 900,922
Other payables 4,952,192 1,901,456 6,853,648
Deposits payable 5,348,610 7,500 5,356,110 256,306
Unearned revenue 8,481,273 33,027 8,514,300
Accrued insurance losses (Note 12):
Due within one year 3,047,258 3,047,258
Due in more than one year 13,436,000 13,436,000
Compensated absences obligation (Note 1L):
Due within one year 5,432,020 589,258 6,021,278
Due in more than one year 3,032,874 200,814 3,233,688
Debt and lease financing obligations (Note 5):
Due within one year 3,329,637 5,312,308 8,641,945
Due in more than one year 223,757,842 57,467,142 281,224,984
Lease liability (Note 10):
Due within one year 349,429
Due in more than one year 2,059,878
Net pension liability - due in more than one year (Note 7)129,941,552 14,437,950 144,379,502
Net OPEB Liability - due in more than one year (Note 9)52,307,242 5,811,916 58,119,158
Total Liabilities 477,189,120 86,563,014 563,752,134 2,863,485
DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 7)41,567,798 4,618,644 46,186,442
Related to OPEB (Note 9)6,140,322 682,258 6,822,580
Related to leases (Note 10)14,390,446 14,390,446
Total Deferred Inflows of Resources 62,098,566 5,300,902 67,399,468
NET POSITION (Note 6)
Net investment in capital assets 452,722,446 133,598,554 586,321,000 1,247,248
Restricted for:
Debt service
Special revenue projects 39,574,200 39,574,200
Capital projects 84,722,535 84,722,535
Redevelopment and community development activities 14,763,033 14,763,033
Total Restricted Net Position 139,059,768 139,059,768
Unrestricted (194,945,964)4,271,663 (190,674,301)3,176,478
Total Net Position $396,836,250 $137,870,217 $534,706,467 $4,423,726
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF NET POSITION
JUNE 30, 2022
29 81
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary Government
Governmental Activities:
General Government $20,793,108 $5,413,298 $4,195,664
Fire 28,530,628 7,857,602 14,500
Police 35,635,007 2,878,353 775,579
Public Works 7,544,142 17,734,041 3,745,967 $3,342,651
Parks and Recreation 19,482,582 3,058,826 485,986
Library 6,060,920 1,054,339 566,457
Economic and Community Development 12,034,671 28,676,546 1,068,593
Interest on long term debt 4,686,930
Total Governmental Activities 134,767,988 66,673,005 10,852,746 3,342,651
Business-type Activities
Sewer 26,246,647 22,778,206 5,663,695
Parking District 1,170,305 993,986
Storm Water 1,309,360 412,842 5,252,622
Total Business-type Activities 28,726,312 24,185,034 5,663,695 5,252,622
Total Primary Government $163,494,300 $90,858,039 $16,516,441 $8,595,273
Component Unit
Conference Center $2,959,376 $752,191
General revenues:
Taxes:
Property taxes
Sales taxes
Transient occupancy taxes
Franchise Fees
Other taxes
Motor vehicle in lieu, unrestricted
Property taxes in lieu of vehicle license fees
Investment earnings
Gain on sale of property
Miscellaneous
Special Item:
Remittance of land sale proceeds to taxing entities
Transfers (Note 4)
Total general revenues, special item and transfers
Change in Net Position
Net Position - Beginning, as Restated (Note 1T)
Net Position - Ending
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
Program Revenues
30 82
Component Unit
South
San Francisco
Governmental Business-Type Conference
Activities Activities Total Center
($11,184,146)($11,184,146)
(20,658,526)(20,658,526)
(31,981,075)(31,981,075)
17,278,517 17,278,517
(15,937,770)(15,937,770)
(4,440,124)(4,440,124)
17,710,468 17,710,468
(4,686,930)(4,686,930)
(53,899,586)(53,899,586)
$2,195,254 2,195,254
(176,319)(176,319)
4,356,104 4,356,104
6,375,039 6,375,039
(53,899,586)6,375,039 (47,524,547)
($2,207,185)
40,011,221 40,011,221
38,143,689 38,143,689
12,135,638 12,135,638 1,817,344
4,863,076 4,863,076
6,537,423 6,537,423
77,558 77,558
11,988,715 11,988,715
(6,724,092)(761,751)(7,485,843)11,377
1,518,059 1,518,059
14,458,939 14,458,939
(2,962,923)(2,962,923)
(1,419,235)1,419,235
118,628,068 657,484 119,285,552 1,828,721
64,728,482 7,032,523 71,761,005 (378,464)
332,107,768 130,837,694 462,945,462 4,802,190
$396,836,250 $137,870,217 $534,706,467 $4,423,726
Primary Government
Net (Expenses) Revenues and Changes in Net Position
31 83
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84
FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year.
The funds described below were determined to be Major Funds by the City in fiscal 2022. Individual non-
major funds may be found in the Supplemental section.
GENERAL FUND
This fund accounts for resources traditionally associated with government, such as administration, public
safety, library, parks maintenance, and recreation, outside of those accounted for in other funds.
LOW AND MODERATE INCOME HOUSING ASSETS SPECIAL REVENUE FUND
To account for the activities related to the assets assumed by the City as Housing Successor to the
housing activities of the former Redevelopment Agency of the City of South San Francisco. The main
source of revenue for this fund is the repayment of loans restricted for housing activities.
AMERICAN RESCUE PLAN ACT SPECIAL REVENUE FUND
To account for the City’s allocation of American Rescue Plan federal stimulus funds, as part of the federal
government’s response to the impacts of the COVID-19 pandemic.
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction, or improvement of City owned
facilities and infrastructure. Funding comes from the general fund, special revenue funds, grants and fees.
EAST OF 101 SEWER IMPACT FEES CAPITAL PROJECTS FUND
These fees provide new development’s share of new and rehabilitated sewer collection and treatment
facilities to serve the East of Highway 101 area.
TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND
These fees are to provide new development’s share of new and expanded roadway and intersection
improvements to serve the East of Highway 101 area and other areas of the City.
CHILD CARE IMPACT FEES CAPITAL PROJECTS FUND
These citywide fees provide new development’s share of new and expanded childcare facilities to serve
the childcare needs of working parents.
CAPITAL INFRASTRUCTURE RESERVE FUND
Replacement, upgrade, and maintenance of the City’s infrastructure are backlogged, constituting a
significant liability. Funds are set aside in this fund as part of the budget process and as part of the City’s
reserve policy to address the replacement and/or upgrade of the city infrastructure (such as parks,
buildings, facilities, streets, sidewalks, and storm water facilities).
33 85
FUND FINANCIAL STATEMENTS (Continued)
CAPITAL IMPROVEMENT POLICE STATION CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction, and installation of certain
capital improvements constituting the new City police station located within the City’s new Civic Center
Campus, and related improvements, facilities and equipment, and pay the costs incurred in connection
with the issuance of the Series 2020A Bonds.
CAPITAL IMPROVEMENT CIVIC CAMPUS CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction, and installation of certain
capital improvements constituting the City’s new Civic Center Campus, and related improvements,
facilities and equipment, and pay the costs incurred in connection with the issuance of the Series 2021A
Bonds.
CAPITAL IMPROVEMENT ORANGE MEMORIAL PARK CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction and installation of certain capital
improvements at the City-owned Orange Memorial Park and pay the costs incurred in connection with the
issuance of the Series 2022A Bonds.
34 86
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87
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2022
Special Revenue Funds Capital Projects Funds
Low and
Moderate American East of 101
General Income Rescue Capital Sewer
Fund Housing Assets Plan Act Improvement Impact Fees
ASSETS
Cash and investments (Note 2)$50,061,615 $2,469,920 $8,263,293 $54,317 $4,860,145
Receivables:
Accounts 18,303,062 5,075 2,443,532
Accrued interest 161,122 7,634 12,661
Due from Conference Center 40,379
Loans 560,238
Leases (Note 10)13,455,776 1,197,345
Due from other funds (Note 4B)1,270,000
Inventory 4,099
Restricted cash and investments (Note 2)152,797 21,296,576
Properties held for redevelopment (Note 1N)14,763,033
Total Assets $98,211,883 $4,240,212 $8,263,293 $23,794,425 $4,872,806
LIABILITIES
Liabilities:
Accounts payable $4,589,446 $27,938 $5,128,420
Accrued salaries and benefits 1,766,827
Other payable 842,046 1,027,312
Deposits payable 1,159,644
Unearned revenue $8,263,293
Due to other funds (Note 4B)430,000
Total Liabilities 8,357,963 27,938 8,263,293 6,585,732
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 1,799,387
Related to leases (Note 10)13,207,264 1,183,182
Total Deferred Inflows of Resources 13,207,264 1,183,182 1,799,387
FUND BALANCE
Fund Balances (Note 6):
Nonspendable 4,099
Restricted 14,763,033 3,029,092 16,847,198 $4,872,806
Committed 16,083,977
Assigned 7,482,439
Unassigned 38,313,108 (1,437,892)
Total Fund Balances (Deficits)76,646,656 3,029,092 15,409,306 4,872,806
Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficits) $98,211,883 $4,240,212 $8,263,293 $23,794,425 $4,872,806
See accompanying notes to basic financial statements
36 88
Capital Projects Funds
Capital
Capital Capital Capital Improvement Other Total
Traffic Child Care Infrastructure Improvement Improvement Orange Governmental Governmental
Impact Fees Impact Fees Reserve Police Station Civic Campus Memorial Park Funds Funds
$24,685,029 $13,862,533 $24,822,132 $72,342,469 $201,421,453
1,279,891 22,031,560
76,528 38,631 68,792 186,179 551,547
40,379
2,692,964 3,253,202
14,653,121
1,270,000
4,099
$708,008 $50,463,437 $71,684,403 2,091 144,307,312
14,763,033
$24,761,557 $13,901,164 $24,890,924 $708,008 $50,463,437 $71,684,403 $76,503,594 $402,295,706
$1,100 $10,875,293 $614,031 $21,236,228
1,766,827
$239,226 2,307,779 535,797 4,952,160
4,188,966 5,348,610
217,980 8,481,273
210,000 640,000
1,100 239,226 13,183,072 5,766,774 42,425,098
1,799,387
14,390,446
16,189,833
4,099
$24,761,557 $13,901,164 468,782 37,280,365 $71,684,403 70,736,820 258,345,220
16,083,977
24,889,824 32,372,263
36,875,216
24,761,557 13,901,164 24,889,824 468,782 37,280,365 71,684,403 70,736,820 343,680,775
$24,761,557 $13,901,164 $24,890,924 $708,008 $50,463,437 $71,684,403 $76,503,594 $402,295,706
37 89
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2022
Total fund balances reported on the governmental funds balance sheet $343,680,775
Amounts reported for Governmental Activities in the Statement of Net Position are
different from those reported in the Governmental Funds because of the following:
Capital assets used in Governmental Activities are not financial resources and,
therefore, are not reported in the Governmental Funds. 461,292,492
Internal service funds are used by management to charge the cost of management of
communication, telephone, building, fleet maintenance, equipment replacement, workers'
compensation, employee benefits, insurance, and post-retirement healthcare benefits to
individual funds. The assets and liabilities are included in Governmental Activities in the
Statement of Net Position. 25,412,720
The assets and liabilities below are not due and payable in the current period and
therefore are not reported in the funds:
Long-term debt (226,942,842)
Interest payable (690,006)
Deferred outflows related pension 23,087,021
Deferred outflows related to OPEB 5,669,372
Net OPEB liability (52,307,242)
Net pension liability (129,941,552)
Deferred inflows related to OPEB (6,140,322)
Deferred inflows related to pension (41,567,798)
Compensated absences (6,515,755)
Net position of governmental activities $396,836,250
See accompanying notes to financial statements
38 90
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91
Special Revenue Funds Capital Projects Funds
Low and
Moderate American East of 101
General Income Rescue Capital Sewer
Fund Housing Assets Plan Act Improvement Impact Fees
REVENUES
Property taxes $49,779,284
Sales taxes 37,760,777
Transient occupancy taxes 12,135,638
Franchise Fees 4,863,076
Other taxes 6,537,423
Intergovernmental 3,196,346 $3,755,648 $842,462
Interest and rentals 1,553,209 $98,417 ($145,957)
Licenses and permits 14,062,474
Charges for services 9,747,605 59,335 985,102
Fines and forfeitures 700,961
Other 515,004 47,076 146,037
Total Revenues 140,851,797 145,493 3,755,648 1,047,834 839,145
EXPENDITURES
Current:
City Council 252,677
City Clerk 887,678
City Treasurer 39,852
City Attorney 1,138,457
City Manager 4,191,480
Finance 3,148,914
Non-departmental 2,580,748 1,111,389 2,800
Human Resources 2,065,927
Fire 32,560,468
Police 33,281,487
Public Works 6,294,564 26,413,361
Parks and Recreation 18,092,526
Library 6,495,279
Economic and Community Development 11,006,922 344,379
Other
Capital Outlay
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 122,036,979 344,379 1,111,389 26,413,361 2,800
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 18,814,818 (198,886)2,644,259 (25,365,527)836,345
OTHER FINANCING SOURCES (USES)
Gain from sale of property 1,507,641
Issuance of debt
Bond premium
Transfers in (Note 4C)4,763,729 2,784 14,526,753
Transfers out (Note 4C)(21,235,610)(2,644,259)(2,362)(107,818)
Total Other Financing Sources (Uses)(14,964,240)2,784 (2,644,259) 14,524,391 (107,818)
Net Change in Fund Balances before special items 3,850,578 (196,102)(10,841,136)728,527
SPECIAL ITEMS
Remittance of land sale proceeds (2,962,923)
Net Change in Fund Balances 887,655 (196,102)(10,841,136)728,527
Fund balances (deficits) - July 1 75,759,001 3,225,194 26,250,442 4,144,279
Fund balances (deficits) - June 30 $76,646,656 $3,029,092 $15,409,306 $4,872,806
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022
40 92
Capital Projects Funds
Capital
Capital Capital Capital Improvement Other Total
Traffic Child Care Infrastructure Improvement Improvement Orange Governmental Governmental
Impact Fees Impact Fees Reserve Police Station Civic Campus Memorial Park Funds Funds
$2,220,652 $51,999,936
825,500 38,586,277
12,135,638
4,863,076
2,288,982 8,826,405
17,027,848 24,822,304
($880,148) ($441,678)($797,634)$13,028 $138,823 (2,075,384)(2,537,324)
14,062,474
7,083,871 7,656,815 20,254,318 45,787,046
700,961
1,815,999 2,524,116
6,203,723 7,215,137 (797,634)13,028 138,823 42,357,915 201,770,909
252,677
887,678
39,852
1,138,457
4,191,480
3,148,914
2,800 3,697,737
2,065,927
37,072 32,597,540
6,332,894 64,536 39,678,917
2,800 45,150 $40,930,120 14,137,377 87,823,372
2,203,316 20,295,842
6,495,279
1,357,866 12,709,167
5,610,278 5,610,278
5,520,422 5,520,422
4,635,000 4,635,000
6,013 421,914 5,097,833 5,525,760
2,800 2,800 5,565,572 6,332,894 40,936,133 421,914 33,143,278 236,314,299
6,200,923 7,212,337 (6,363,206) (6,319,866) (40,797,310)(421,914)9,214,637 (34,543,390)
1,507,641
65,420,000 65,420,000
6,686,317 6,686,317
8,500,000 102,542 8,324,659 36,220,467
(5,929,676) (99,499)(3,141,590)(5,611,193) (38,772,007)
(5,929,676) (99,499)5,358,410 102,542 72,106,317 2,713,466 71,062,418
271,247 7,112,838 (1,004,796) (6,319,866) (40,694,768) 71,684,403 11,928,103 36,519,028
(2,962,923)
271,247 7,112,838 (1,004,796) (6,319,866) (40,694,768) 71,684,403 11,928,103 33,556,105
24,490,310 6,788,326 25,894,620 6,788,648 77,975,133 58,808,717 310,124,670
$24,761,557 $13,901,164 $24,889,824 $468,782 $37,280,365 $71,684,403 $70,736,820 $343,680,775
41 93
CITY OF SOUTH SAN FRANCISCO
Reconciliation of the
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $33,556,105
Amounts reported for Governmental Activities in the Statement of Activities are
different because of the following:
Capital Assets Transactions
Governmental funds report capital outlays as expenditures. However, in the Statement of
Activities the cost of those assets is capitalized and allocated over their estimated useful
lives and reported as depreciation expense.
Capital assets additions 91,732,476
Current year depreciation (8,611,519)
Long-Term Debt Payments
Bond proceeds provide current financial resources to governmental funds, but
issuing debt increases long-term liabilities in the Statement of Net Position.
Proceeds from issuance of bonds (65,420,000)
Bond premium (6,686,317)
Repayment of principal is an expenditure in the governmental funds, but
in the Statement of Net Position the repayment reduces long-term liabilities.
Repayment of principal is added back to fund balance 4,635,000
Amortization of premium is added back to fund balance 1,104,016
Accrual of Non-Current Items
of current financial resources and therefore is not reported as revenue or expenditures in
governmental funds (net change):
Unavailable revenue 1,799,387
Interest payable (265,186)
Compensated absences 462,871
Net pension liability, deferred outflows and inflows of resources 11,225,062
Net OPEB liability, deferred outflows and inflows of resources 626,641
Allocation of Internal Service Fund Activity
Internal service funds are used by management to charge the costs of certain activities to
individual funds. The net revenue of the internal service fund is reported with governmental
activities.569,946
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $64,728,482
See accompanying notes to financial statements
The amount below included in the Statement of Activities does not require the use
42 94
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $41,074,710 $41,074,710 $49,779,284 $8,704,574
Sales taxes 32,239,177 32,989,177 37,760,777 4,771,600
Transient occupancy taxes 7,085,194 8,585,194 12,135,638 3,550,444
Franchise fees 4,600,000 4,600,000 4,863,076 263,076
Other taxes 3,614,753 3,614,753 6,537,423 2,922,670
Intergovernmental 2,325,338 5,818,982 3,196,346 (2,622,636)
Interest and rentals 3,564,976 3,504,976 1,553,209 (1,951,767)
Licenses and permits 16,453,166 16,453,166 14,062,474 (2,390,692)
Charges for services 9,287,470 7,848,478 9,747,605 1,899,127
Fines and forfeitures 676,975 676,975 700,961 23,986
Other 232,718 394,382 515,004 120,622
Amounts available for appropriation 121,154,477 125,560,793 140,851,797 15,291,004
Charges to appropriations (outflows):
City Council 292,426 292,427 252,677 39,750
City Clerk 1,151,844 1,231,044 887,678 343,366
City Treasurer 160,245 160,244 39,852 120,392
City Attorney 910,049 910,049 1,138,457 (228,408)
City Manager 3,607,557 4,512,195 4,451,837 60,358
Finance 3,807,781 4,385,682 3,603,809 781,873
Non-departmental 1,294,252 1,369,252 2,581,079 (1,211,827)
Human Resources 2,042,597 2,307,004 2,184,942 122,062
Fire 29,508,065 29,892,151 32,975,264 (3,083,113)
Police 32,386,774 32,843,169 33,383,916 (540,747)
Public Works 5,978,429 6,396,059 6,743,595 (347,536)
Parks and Recreation 16,729,027 18,371,855 18,920,003 (548,148)
Library 6,221,935 6,897,585 6,495,735 401,850
Economic and Community Development 8,227,651 16,293,222 15,860,574 432,648
Total charges to appropriations 112,318,632 125,861,938 129,519,418 (3,657,480)
OTHER FINANCING SOURCES (USES)
Gain from sale of property 630,000 690,000 1,507,641 817,641
Transfers in (Note 4C) 1,187,080 5,519,792 4,763,729 (756,063)
Transfers out (Note 4C) (9,771,783) (34,516,335) (21,235,610) 13,280,725
Total Other Financing Sources (Uses) (7,954,703) (28,306,543) (14,964,240) 13,342,303
881,142 (28,607,688) (3,631,861) 24,975,827
SPECIAL ITEM
Remittance of land sale proceeds (2,962,923) (2,962,923)
NET CHANGE IN FUND BALANCE $881,142 ($28,607,688) (6,594,784) $22,012,904
Fund Balance - July 1 75,759,001
Adjustment to budgetary basis:
Encumbrance adjustments 7,482,439
Fund Balance - June 30 $76,646,656
See accompanying notes to financial statements
Budgeted Amounts
NET CHANGE IN FUND BALANCES BEFORE SPECIAL ITEM
43 95
Variance with
Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:
Interest and rental $167,000 $167,000 $98,417 ($68,583)
Other 140,000 140,000 47,076 (92,924)
Total Revenues 307,000 307,000 145,493 (161,507)
EXPENDITURES:
Current:
Economic and Community Development 671,489 685,423 355,122 330,301
Total Expenditures 671,489 685,423 355,122 330,301
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (364,489) (378,423) (209,629) 168,794
OTHER FINANCING SOURCES (USES)
Transfers in (Note 4C) 2,784 2,784
NET CHANGE IN FUND BALANCE ($364,489) ($375,639) (206,845) $168,794
Fund balance - July 1 3,225,194
Adjustment to budgetary basis:
Encumbrance adjustments 10,743
Fund balance - June 30 $3,029,092
SPECIAL REVENUE FUND
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
LOW AND MODERATE INCOME HOUSING ASSETS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
44 96
MAJOR PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private
business enterprise. The intent of the City is that the cost of providing goods and services be financed
primarily through user charges.
SEWER ENTERPRISE FUND
This fund accounts for user charges and debt proceeds supporting the operation, maintenance, and capital
expansion of the wastewater collection and treatment system.
PARKING DISTRICT FUND
This fund accounts for meter and parking permit fees used to acquire and maintain parking facilities.
STORM WATER FUND
This fund accounts for user charges sustaining the Storm Water Management Program mandated by state
and federal authorities.
45 97
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2022
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds
ASSETS
Current assets:
Cash and investments (Note 2)$21,609,890 $3,386,042 $5,234 $25,001,166 $38,397,533
Receivables:
Accounts 1,824,711 3,714,968 5,539,679
Accrued interest 57,079 10,604 67,683 105,092
Deposits 309,790
Prepaid items 1,204,373
Restricted cash and investments (Note 2)182,446 182,446
Total current assets 23,674,126 3,396,646 3,720,202 30,790,974 40,016,788
Noncurrent assets:
Capital assets (Note 3):
Nondepreciable 71,476,360 421,149 12,880,533 84,778,042
Depreciable, net accumulated depreciation 100,514,898 9,511,977 1,573,087 111,599,962 4,402,557
Total non-current assets 171,991,258 9,933,126 14,453,620 196,378,004 4,402,557
Total Assets 195,665,384 13,329,772 18,173,822 227,168,978 44,419,345
DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 7)2,565,225 2,565,225
Related to OPEB (Note 9)629,930 629,930
Total Deferred Outflows of Resources 3,195,155 3,195,155
LIABILITIES
Current liabilities:
Accounts payable 552,817 16,028 21,882 590,727 429,559
Other payable 1,253,363 648,093 1,901,456 32
Accrued interest payable 210,916 210,916
Deposits payable 7,500 7,500
Unearned revenue 33,027 33,027
Due to other funds (Note 4B)630,000 630,000
Accrued insurance loss (Note 12)3,047,258
Compensated absences obligation (Note 1L)562,874 340 26,044 589,258 1,221,145
Current portion of long-term debt (Note 5)5,312,308 5,312,308 144,637
Total current liabilities 7,932,805 16,368 1,326,019 9,275,192 4,842,631
Noncurrent liabilities:
Accrued insurance losses (Note 12)13,436,000
Compensated absences obligation (Note 1L)186,174 14,640 200,814 727,994
Noncurrent portion of long-term debt (Note 5)57,467,142 57,467,142
Net pension liability (Note 7)14,437,950 14,437,950
Net OPEB liability (Note 9) 5,811,916 5,811,916
Total noncurrent liabilities 77,903,182 14,640 77,917,822 14,163,994
Total Liabilities 85,835,987 16,368 1,340,659 87,193,014 19,006,625
DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 7)4,618,644 4,618,644
Related to OPEB (Note 9)682,258 682,258
Total Deferred Inflows of resources 5,300,902 5,300,902
NET POSITION:
Net investment in capital assets 109,211,808 9,933,126 14,453,620 133,598,554 4,257,919
Unrestricted (deficit) (1,488,158) 3,380,278 2,379,543 4,271,663 21,154,801
Total Net Position $107,723,650 $13,313,404 $16,833,163 $137,870,217 $25,412,720
See accompanying notes to financial statements
46 98
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds
OPERATING REVENUES
Charges for services $22,567,226 $412,517 $22,979,743 $28,536,570
Other cities' participation 5,663,695 5,663,695
Permit fees 210,980 210,980
Parking fees $993,986 993,986
Total Operating Revenues 28,441,901 993,986 412,517 29,848,404 28,536,570
OPERATING EXPENSES
Personnel expenses 9,088,372 367,524 1,126,715 10,582,611 18,194,228
Professional services 3,346,076 339,154 51,169 3,736,399 567,727
OPEB Expenses 535,039 554 535,593
Program supplies 1,754,099 1,264 1,067 1,756,430 2,037,346
Insurance 210,870 3,698 214,568 2,623,826
Self-insurance and claims 2,248,076
Repair and maintenance 1,178,368 19,382 1,197,750 856,617
Rents 1,689,059 1,689,059
Utilities 1,742,123 96,164 12,781 1,851,068 176,937
Administration 1,427,208 113,007 48,535 1,588,750
Depreciation 4,814,962 252,638 39,839 5,107,439 967,562
Other 21,262 6,174 27,436 555,977
Total Operating Expenses 25,807,438 1,170,305 1,309,360 28,287,103 28,228,296
Operating Income (Loss) 2,634,463 (176,319) (896,843) 1,561,301 308,274
NONOPERATING REVENUES (EXPENSES)
Interest income (652,348) (121,962) 12,559 (761,751) (1,209,727)
Gain on dispositions of capital assets 10,418
Interest expense (439,209) (439,209) (6,614)
Other 325 325 335,290
Total Nonoperating Revenues (Expenses) (1,091,557) (121,962) 12,884 (1,200,635) (870,633)
Income (loss) before contributions and transfers 1,542,906 (298,281) (883,959) 360,666 (562,359)
TRANSFERS
Capital subventions and grants 5,252,622 5,252,622
Transfers in (Note 4C) 489,610 1,440 985,261 1,476,311 1,132,305
Transfers (out) (Note 4C) (57,076) (57,076)
Change in Net Position 1,975,440 (296,841) 5,353,924 7,032,523 569,946
Net Position (Deficits) - July 1 105,748,210 13,610,245 11,479,239 130,837,694 24,842,774
Net Position (Deficits) - June 30 $107,723,650 $13,313,404 $16,833,163 $137,870,217 $25,412,720
See accompanying notes to financial statements
47 99
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2022
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $29,519,529 $993,986 $1,572,969 $32,086,484
Cash payments to suppliers for goods and services (12,673,778) (692,133) (126,245) (13,492,156) ($6,258,323)
Cash payments to employees for services (10,502,325) (388,938) (1,095,129) (11,986,392) (20,041,496)
Cash received from interfund service provided 28,902,887
Cash payments for judgments and claims (1,514,615)
Net Cash Provided by (Used in) Operating Activities 6,343,426 (87,085) 351,595 6,607,936 1,088,453
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts 630,000 630,000
Transfers in 489,610 1,440 985,261 1,476,311 1,132,305
Transfers in (57,076) (57,076)
Net Cash Provided by Noncapital Financing Activities 432,534 1,440 1,615,261 2,049,235 1,132,305
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Proceeds from issuance of debt 5,147,945 5,147,945
Principal paid on long-term debt (5,173,954) (5,173,954) (140,892)
Interest paid on long-term debt (533,286) (533,286) (6,614)
Subventions and grants 5,252,622 5,252,622
Acquisition of capital assets, net (9,769,879) (8,222,453) (17,992,332) (424,683)
Proceeds from the sale of capital assets 17,719
Net Cash Used in Capital and Related Financing Activities (10,329,174) (2,969,831) (13,299,005) (554,470)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received (paid) (1,476,607) (274,869) 4,707 (1,746,769) (2,726,433)
Changes in fair value of investments 822,621 152,820 13,385 988,826 1,514,594
Net Cash Provided by Investing Activities (653,986) (122,049) 18,092 (757,943) (1,211,839)
Net Increase (Decrease) in cash and cash equivalents (4,207,200) (207,694) (984,883) (5,399,777) 454,449
Cash and cash equivalents, beginning 25,999,536 3,593,736 990,117 30,583,389 37,943,084
Cash and cash equivalents, ending $21,792,336 $3,386,042 $5,234 $25,183,612 $38,397,533
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss) $2,634,463 ($176,319) ($896,843) $1,561,301 $308,274
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation 4,814,962 252,638 39,839 5,107,439 967,562
Other non-operating revenue (expenses)325 325 335,290
Net change in assets and liabilities:
Accounts and lease receivables 1,077,628 1,160,127 2,237,755 31,027
Deposit
Prepaid items (1,204,373)
Accounts payable (1,185,649) (141,990) 16,562 (1,311,077) 24,191
Other payable 415,975 (1) 415,974 29
Unearned revenue
Accrued insurance losses 733,461
(Decrease) increase due to retirement system (1,247,231) (1,247,231)
(Decrease) increase due to OPEB (69,627) (69,627)
Compensated absence obligations (97,095) (21,414) 31,586 (86,923) (107,008)
Net Cash Provided by (Used in) Operating Activities $6,343,426 ($87,085) $351,595 $6,607,936 $1,088,453
NONCASH TRANSACTIONS
Retirement of capital assets ($7,301)
See accompanying notes to basic financial statements
48 100
FIDUCIARY FUNDS
These funds are used to account for assets held by the City as an agent for individuals, private
organizations, and other governments. The financial activities of these funds are excluded from the
government-wide financial statements, but are presented in separate Fiduciary Fund financial statements.
SUCCESSOR AGENCY PRIVATE PURPOSE TRUST FUND
The Fund is used to account for the activities of the Successor Agency to the former Redevelopment
Agency of the City of South San Francisco.
CUSTODIAL FUNDS are used to report resources, not in a trust, that are held by the City for other
parties outside of the City’s reporting entity.
49 101
Successor
Agency
Private Purpose
Trust Fund Custodial Funds
ASSETS
Cash and investments (Note 2) $1,697,719 $139,655
Accounts receivable
Interest receivable 19,610 396
Prepaid items
Advances to the City (Note 5) 2,150,152
Loans receivable (Note 14B) 80,572
Restricted cash and investments (Note 2) 19,879,521 20,221,759
Capital assets (Note 14C):
Nondepreciable 111,219
Depreciable, net accumulated depreciation 238,124
Total Assets 24,176,917 20,361,810
LIABILITIES
Accounts payable 1,261 2,500
Total Liabilities 1,261 2,500
NET POSITION
Held in trust for other purposes 24,175,656
Restricted for others 137,551
Restricted for bondholders 20,221,759
Total Net Position $24,175,656 $20,359,310
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2022
50 102
CITY OF SOUTH SAN FRANCISCO
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
Successor
Agency
Private Purpose
Trust Fund Custodial Funds
ADDITIONS
Intergovernmental $4,248,681
Plan contributions $32,041
Contributions from property owners 20,764,872
Interest and rentals (218,539) 6,893
Total Additions 4,030,142 20,803,806
DEDUCTIONS
Economic and Community Development 13,709,828
Professional services 20,100
Payments to bondholders 554,565
Depreciation 6,594
Total Deductions 13,716,422 574,665
Change in net position (9,686,280) 20,229,141
NET POSITION
Beginning of the year 33,861,936 130,169
End of the year $24,175,656 $20,359,310
See accompanying notes to financial statements
51 103
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104
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.Description of the Financial Reporting Entity
As required by generally accepted accounting principles, the financial statements present the City
of South San Francisco (the City) as the Primary Government, with its component units for which
the City is considered financially accountable. The component units discussed below are
included in the City's reporting entity because of the significance of their operational and
financial relationships with the City.
B.Description of Blended Component Units
The accompanying basic financial statements include all funds and boards and commissions that
are controlled by the City Council. The basic financial statements include the City’s blended
component units, entities for which the City is considered to be financially accountable. A
blended component unit, although a legally separate entity, is in substance, part of the City’s
operations and so data from this unit is combined with the City. The City’s following blended
component units are described below.
The City of South San Francisco Capital Improvements Financing Authority is a joint
exercise of powers authority created in 1991 between the City and the City of South San
Francisco former Redevelopment Agency. The Capital Improvements Financing Authority is
authorized to borrow money through the purchase or issuance of bonds, notes, or other
obligations for the purpose of making loans to the City and other public entities to finance capital
improvements. The City Council members serve as the Board of Directors. The Capital
Improvements Financing Authority did not have any activity during fiscal year 2022. Separate
financial statements are not issued for the Capital Improvements Financing Authority.
The Parking Authority of the City of South San Francisco was formed in October 2019
pursuant to the California Parking Law of 1949, Streets and Highways Code Section 32500, et
seq. The City Council members serve as the Board of Directors. The financial activities of the
Parking Authority are included in the Parking District Enterprise Fund. Separate financial
statements are not issued for the Parking Authority.
The City of South San Francisco Public Facilities Financing Authority is a joint exercise of
powers authority created in December 2019 between the City and the Parking Authority. The
Public Facilities Financing Authority is authorized to borrow money through the purchase or
issuance of bonds, notes, or other obligations for the purpose of making loans to the City or the
Parking Authority and other public or private entities to finance capital improvements. The City
Council members serve as the Board of Directors. The financial activities of the Public Facilities
Financing Authority are included in the Capital Improvements Police Station, Capital
Improvements Civic Campus and Capital Improvement Orange Memorial Park Capital Projects
Funds. Separate financial statements are not issued for the Public Facilities Financing Authority.
53 105
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C.Description of Discrete Component Unit
The City of South San Francisco Conference Center Authority was established in 1992 to
manage and operate the South San Francisco Conference Center. The Authority is governed by a
Board of nine commissioners consisting of two Council members and seven representatives from
various businesses appointed by City Council.
The Authority does not meet the criteria of a blended component unit, since the City Council is
not the Authority’s governing body and the Authority does not provide services entirely to the
City. However, the City is financially accountable and is able to impose its will on the Authority.
The Authority is therefore considered a discrete component unit with its financial data reported
separately from the financial data of the City.
The City of South San Francisco Conference Center Authority financial statements may be
obtained from the Authority at 255 South Airport Boulevard, South San Francisco, CA 94080.
D. Basis of Presentation
Government-wide Statements – The Statement of Net Position and the Statement of Activities
display information about the primary government (the City) and its component units. These
statements include the financial activities of the overall City government, except for fiduciary
activities. Interfund transfers and amounts owed between funds within the primary government
have been eliminated from the statements. Amounts representing interfund services and uses
remain in the statements. These statements distinguish between the governmental and business-
type activities of the City. Governmental activities generally are financed through taxes,
intergovernmental revenues, and other nonexchange transactions. Business-type activities are
financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues
for each segment of the business-type activities of the City and for each function of the City’s
governmental activities. Direct expenses are those that are specifically associated with a program
or function and, therefore, are clearly identifiable to a particular function. Program revenues
include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants
and contributions that are restricted to meeting the operational needs of a particular program and
(c) fees, grants and contributions that are restricted to financing the acquisition or construction of
capital assets. Revenues that are not classified as program revenues, including all taxes, are
presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the City’s
funds, including fiduciary funds and blended component units. Separate statements for each fund
category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund
financial statements is on major individual governmental and enterprise funds, each of which is
displayed in a separate column. All remaining governmental and enterprise funds are aggregated
and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with the principal activity of the fund. Exchange transactions are those in
which each party receives and gives up essentially equal values. Nonoperating revenues, such as
subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
54 106
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
E. Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or
expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand
total. The General Fund is always a major fund. The City may also select other funds it believes
should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial
statements:
General Fund – Accounts for resources traditionally associated with government, such as
administration, public safety, library, parks, maintenance, and recreation, outside of those
accounted for in other funds.
Low and Moderate Income Housing Assets Special Revenue Fund – This fund was
established to account for the activities related to the assets assumed by the City as Housing
Successor to the housing activities of the former Redevelopment Agency of the City. The main
source of revenue for this fund is the repayment of loans restricted for housing activities.
American Rescue Plan Act Special Revenue Fund – This Fund was established to account for
the City’s allocation of American Rescue Plan federal stimulus funds, as part of the federal
government’s response to the impacts of the COVID-19 pandemic.
Capital Improvement Capital Projects Fund – Accounts for expenditures associated with the
acquisition, construction, or improvement of City-owned facilities and infrastructure. Funding
comes from the General Fund, Special Revenue funds, grants and fees.
East of 101 Sewer Impact Fees Capital Projects Fund – These fees provide new
development’s share of new and rehabilitated sewer collection and treatment facilities to serve the
East of Highway 101 area.
Traffic Impact Fees Capital Projects Fund – These fees are to provide new developments share
of new and expanded roadway and intersection improvements to serve the East of Highway 101
area and other areas within the City.
Child Care Impact Fees Capital Projects Fund – These citywide fees provide new
development’s share of new and expanded childcare facilities to serve the City.
Capital Infrastructure Reserve Fund – Replacement, upgrade, and maintenance of the City’s
infrastructure are backlogged, constituting a significant liability. Funds are set aside in this fund
as part of the budget process and as part of the City’s reserve policy to address the replacement
and/or upgrade of the city infrastructure (such as parks, buildings, facilities, streets, sidewalks,
and storm water facilities).
55 107
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Capital Improvement Police Station – Accounts for expenditures associated with the
acquisition, construction, and installation of certain capital improvements constituting the new
City police station located within the City’s new Civic Center Campus, and related
improvements, facilities and equipment, and pay the costs incurred in connection with the
issuance of the Series 2020A Bonds.
Capital Improvement Civic Campus – Accounts for expenditures associated with the
acquisition, construction, and installation of certain capital improvements constituting the City’s
new Civic Center Campus, and related improvements, facilities and equipment, and pay the costs
incurred in connection with the issuance of the Series 2021A Bonds.
Capital Improvement Orange Memorial Park Capital Projects Fund – Accounts for
expenditures associated with the acquisition, construction and installation of certain capital
improvements at the City-owned Orange Memorial Park and pay the costs incurred in connection
with the issuance of the Series 2022A Bonds.
The City reported all enterprise funds as major funds in the accompanying financial statements.
The enterprise funds are:
Sewer Enterprise Fund – Accounts for user charges and debt proceeds supporting the operation,
maintenance, and capital expansion of the wastewater collection and treatment system.
Parking District Fund – Accounts for meter and parking permit fees used to acquire and
maintain parking facilities.
Storm Water Fund – Accounts for user charges sustaining the Storm Water Management
Program mandated by state and federal authorities.
The City also reports the following fund types:
Internal Service Funds – These funds account for City services, self insurance, health and
retirement benefits, and equipment replacement; all of which are provided to other departments
on a cost-reimbursement basis.
Fiduciary Funds – The Fiduciary fund financial statements normally include a Statement of Net
Position and a Statement of Changes in Fiduciary Net Position. The financial activities of the
funds are excluded from the government-wide financial statements. The City’s fiduciary funds
represent a private purpose trust fund and custodial funds. The Successor Agency Private-
Purpose Trust Fund accounts for the accumulation of resources to be used for payments at
appropriate amounts and times in the future. Custodial funds are used to account for assets held
by the City on behalf of other agencies for other purposes. The City’s Custodial Funds includes
the Employee Deferred Comp Trust Oversight Fund and the Community Facilities District 2021-
01, which accounted for payments of special assessment bonds.
56 108
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. Basis of Accounting
The government-wide, proprietary, fiduciary, and discretely presented component unit financial
statements are reported using the economic resources measurement focus and the full accrual
basis of accounting. Revenues are recorded when earned and expenses are recorded at the time
liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Under this method, revenues are recognized when
measurable and available. The City considers all revenues reported in the governmental funds to
be available if the revenues are collected within sixty days after year-end. Expenditures are
recorded when the related fund liability is incurred, except for principal and interest on long-term
debt, including lease liabilities, claims and judgments, and compensated absences, which are
recognized as expenditures to the extent they have matured. General capital asset acquisitions,
including entering into contracts giving the City the right to use leased assets, are reported as
expenditures in governmental funds. Proceeds from long-term debt and financing through leases
are reported as other financing sources.
Those revenues susceptible to accrual are property and sales taxes, certain intergovernmental
revenues, interest revenue, licenses and permits, charges for services, fines and forfeitures. Sales
taxes collected and held by the state at year end on behalf of the City are also recognized as
revenue. Other receipts and taxes are recognized as revenue when the cash is received.
Non-exchange transactions, in which the City gives or receives value without directly, receiving
or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the
accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or
assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in
which all eligibility requirements have been satisfied. Under the terms of grant agreements, the
City may fund certain programs with a combination of cost-reimbursement grants, categorical
block grants, and general revenue. Thus, both restricted and unrestricted net position may be
made available to finance program expenditures. The City’s policy is to first apply restricted
grant resources to such programs, followed by general revenues if necessary.
The City considers restricted shared state revenues such as gasoline taxes and public safety sales
taxes, restricted locally imposed transportation sales taxes, fines, forfeitures, licenses, permits,
charges for services, and program grants as program revenues.
57 109
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. Budgets, Budgetary Accounting, and Encumbrances
The City is not legally required to budget any of its funds, but does so to enhance City
management's effectiveness in their financial planning efforts and to enhance control over the
City's operations. Budgets are adopted on a modified accrual basis, except for encumbrances and
for the Capital Improvement Fund. Encumbrances are considered expenditures in the year of the
purchase order issuance. All Capital Projects Funds are adopted on a multi-year project basis
with unexpended and unencumbered budgets reappropriated in the following year. The City
operates under the general laws of the State of California (the State) and annually adopts a budget
effective July 1 for the ensuing fiscal year for the General fund; Special Revenue funds, except
the American Recovery Plan Act Special Revenue Fund, Developer Contributions Special
Revenue Fund, Supplemental Law Enforcement Services Special Revenue Fund, City Programs
Special Revenue Fund, and Affordable Housing Trust Special Revenue; Capital Projects Funds;
and Enterprise funds.
The budget is adopted by the City Council and controlled at the department level for the General
Fund and at the fund level or lower for all other funds with adopted budgets. From the effective
date of the budget, the amounts stated therein as proposed expenditures become appropriations to
the various City departments. The City Council may amend the budget by resolution during the
fiscal year. The department heads may authorize transfers within one object category within the
same department within a fund. The City Manager may authorize transfers between object
categories and departments within a fund.
All appropriations lapse at year-end, except for capital projects and encumbrances. Original
adopted budgets and final amended budgets are presented in the basic financial statements.
Supplementary budget appropriations were necessary during the year ended June 30, 2022.
Encumbrance accounting, under which, purchase orders, contracts and other commitments for the
expenditure of funds are recorded in order to reserve that portion of the applicable appropriation,
is employed as an extension of the budgetary process. Encumbrances outstanding at year-end are
reported as a component of fund balances since they do not constitute expenditures or liabilities.
Encumbrances are reappropriated in the following year.
The budgetary comparison statements present comparisons of the legally adopted budget with
actual charges to appropriations on a budgetary basis. In order to provide a meaningful
comparison, the actual charges on a budgetary basis include encumbrances, which is a basis that
differs significantly from those used to present financial statements in conformity with generally
accepted accounting principles.
Certain indirect costs are included in program expenses reported for individual functions and
activities.
58 110
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
H.Expenditures in Excess of Appropriations – The City’s General Fund had the following
departmental expenditures in excess of appropriations and other funds had expenditures in excess
of appropriations for the year ended June 30, 2022:
Expenditures in
Excess of Budget
(Non GAAP
Legal Basis)
General Fund:
City Attorney $228,408
Non-departmental 1,211,827
Fire 3,083,113
Police 540,747
Public Works 347,536
Parks and Recreation 548,148
Non-Major Funds:
Community Development Block Grant Special Revenue Fund 216,389
Maintenance Districts Special Revenue Fund 10,617
Supplemental Law Enforcement Services Special Revenue Fund 64,536
City Programs Special Revenue Fund 1,049,683
Sufficient resources were available within each fund to finance these excesses.
I. Cash Equivalents – For purposes of the statement of cash flows, the City considers all highly
liquid investments (including all restricted assets) with maturity of three months or less when
purchased to be cash equivalents. The City maintains a cash and investment pool that is available
for use by all funds. As the proprietary funds' share of this pool is readily available when needed,
such share is also considered to be cash equivalent. Deposit assets in the proprietary funds are
related to insurance and benefits and are not considered cash equivalents for purposes of the
statement of cash flows.
J.Inventory and Prepaid Items – consist of consumable supplies. Inventory is stated at cost (first-
in, first-out method). The costs are recorded as expenditures at the time the individual inventory
or prepaid item is consumed. Reported inventory and prepaid items are equally offset by a fund
balance reservation, which indicates that they do not constitute "available spendable resources"
even though they are a component of net current assets.
K.Capital Assets – Donated capital assets, donated works of art and similar items, and capital assets
received in a service concession arrangement are valued at acquisition value. All other capital assets
are valued at historical cost or estimated historical cost if actual historical cost is not available
except for intangible right to‐use lease assets, the measurement of which is discussed in Note 10
below.
The purpose of depreciation is to spread the cost of capital assets equitably among all users over
the life of these assets. The amount charged to depreciation expense each year represents that
year’s pro rata share of the cost of capital assets.
59 111
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Depreciation is provided using the straight line method which means the cost of the asset is
divided by its expected useful life in years and the result is charged to expense each year until the
asset is fully depreciated. The City and Authority have assigned the useful lives listed below to
capital assets and right to use leased building:
Buildings 50 years
Clean water facilities and transmission lines 40 years
Improvements 30 years
Machinery and equipment 5-20 years
Furniture and fixtures 12 years
Infrastructure 20-40 years
Right to use leased building 30 years
Major outlays for capital assets and improvements are capitalized as projects are constructed.
The capitalization level is $20,000 for vehicles, and $100,000 for all else, including all other
equipment that is not a vehicle.
L. Vacation and Sick Pay – are accrued as earned. Upon termination, employees are paid for all
unused vacation at their current hourly rates. After five to twenty years of employment, one half
of accumulated sick leave becomes vested, up to a maximum amount as specified under labor
contract provisions. The vested portion is available for current use or, if unused, is payable at
termination or retirement.
The long-term portion of the liability for compensated absences for governmental fund type
operations is recorded as compensated absences in the government-wide financial statements. The
portion expected to be permanently liquidated is recorded in the Health and Retirement Benefits
Internal Service Fund. Proprietary fund liabilities are recorded within their respective funds.
The changes of the compensated absences were as follows:
Governmental Business-Type
Activities Activities Total
Beginning Balance $9,034,773 $876,995 $9,911,768
Additions 6,367,587 630,228 6,997,815
Payments (6,937,466)(717,151) (7,654,617)
Ending Balance $8,464,894 $790,072 $9,254,966
Current Portion $5,432,020 $589,258 $6,021,278
Compensated absences are liquidated by the fund that has recorded the liability. The long-term
portion of governmental activities compensated absences is liquidated primarily by the Health
and Retirement Benefits Internal Service Fund.
60 112
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
M. Property Tax Levy, Collection and Maximum Rates – State of California Constitution Article
XIII A provides that the combined maximum property tax rate on any given property may not
exceed 1% of its assessed value unless an additional amount for general obligation debt has been
approved by voters. Assessed value is calculated at 100% of market value as defined by Article
XIII A and may be adjusted by no more than 2% per year unless the property is sold, transferred,
or substantially improved. The State Legislature has determined the method of distribution of
receipts from a 1% tax levy among the counties, cities, school districts and other districts. The
County of San Mateo assesses properties, bills for and collects property taxes on the schedule that
follows:
Secured Unsecured
Valuation/lien dates January 1 January 1
Levy dates July 1 July 1
Due dates (delinquent as of) 50% on November 1 (December 10) July 1 (August 31)
50% on February 1 (April 10)
The term "unsecured" refers to taxes on personal property other than land and buildings. These
taxes are secured by liens on the property being taxed.
Property taxes levied are recorded as revenue and receivables when they are collected during the
fiscal year of levy or within 60 days of year-end.
N. Properties held for redevelopment – is stated at the lower of historical cost or net realizable value
(equal to agreed upon sales price if a disposition and development agreement has been reached
with a developer).
O. Unbilled Services – for the Sewer Rental Enterprise Fund are accrued at year-end.
P. Deferred Outflows/Inflows of Resources – In addition to assets, the statement of financial
position or balance sheet reports a separate section for deferred outflows of resources. This
separate financial statement element, deferred outflows of resources, represents a consumption of
net assets or fund balance that applies to a future period(s) and so will not be recognized as an
outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of
financial position or balance sheet reports a separate section for deferred inflows of resources.
This separate financial statement element, deferred inflows of resources, represents an acquisition
of net assets or fund balance that applies to a future period(s) and so will not be recognized as an
inflow of resources (revenue) until that time.
61 113
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Q. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The City
categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation
techniques used to measure fair value into three levels based on the extent to which inputs used in
measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable
for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the
fair value hierarchy, the measurement is considered to be based on the lowest priority level input
that is significant to the entire measurement.
R. Use of Estimates – The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent asset and liabilities at the
dates of the financial statements and the reported amounts of revenues and expenditures/expenses
during the reporting periods. Actual results could differ from those estimates.
S. New and Renamed Funds
In fiscal year 2021-2022, the City established the following funds:
The Capital Improvement Orange Memorial Park Capital Projects Fund accounts for expenditures
associated with the acquisition, construction and installation of certain capital improvements at
the City-owned Orange Memorial Park and pay the costs incurred in connection with the issuance
of the Series 2022A Bonds.
The Library Impact Capital Projects Fund accounts for citywide fees to provide new
development’s share of the expansion, rehabilitation and replacement of library facilities and
collections to accommodate the increased demand for library services caused by future
development
The Oyster Point CFD Custodial Fund accounts for Community Facilities District No. 2021-01
special assessment collections and debt service payments.
The 2020 A Bonds Debt Service Fund was renamed the Debt Service Fund.
62 114
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
T. New Accounting Pronouncement
In June 2017, the Governmental Accounting Standards Board issued Statement No. 87, Leases.
The objective of this Statement is to better meet the information needs of financial statement
users by improving accounting and financial reporting for leases by governments. This Statement
increases the usefulness of governments’ financial statements by requiring recognition of certain
lease assets and liabilities for leases that previously were classified as operating leases and
recognized as inflows of resources or outflows of resources based on the payment provisions of
the contract. It establishes a single model for lease accounting based on the foundational principle
that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is
required to recognize a lease liability and an intangible right‐to‐use lease asset, and a lessor is
required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the
relevance and consistency of information about governments’ leasing activities.
A lease is defined as a contract that conveys control of the right to use another entity’s
nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an
exchange or exchange‐like transaction. Examples of nonfinancial assets include buildings, land,
vehicles, and equipment. Any contract that meets this definition should be accounted for under
the leases guidance, unless specifically excluded in this Statement.
The pronouncement became effective, and as disclosed in Note 10 to the financial statements
required a prior period restatement for the cumulative effect on the financial statements. The
beginning balances of leases receivable and deferred inflows of resources related to leases for the
City were $15,344,334 as of July 1, 2021 and restated and increased the balances in that amount,
and the net effect on beginning net position and fund balance was zero. In addition, the
Conference Center Authority’s beginning balances of right to use leased assets and the lease
liability were increased and restated in the amounts of $1,948,783 and $2,748,483, respectively,
and the net position was reduced and restated in the amount of $799,700 as of July 1, 2021. See
the Leases disclosure in Note 10.
NOTE 2 – CASH AND INVESTMENTS
The City’s goal is to invest at the maximum yield, consistent with safety and liquidity, while
individual funds can process payments for expenditures at any time.
A. Policies
The City invests in individual investments and in investment pools. Individual investments are
evidenced by specific identifiable securities instruments, or by an electronic entry registering the
owner in the records of the institution issuing the security, called the book entry system. In order
to increase security, the City employs the Trust Department of a bank as the custodian of certain
City managed investments, regardless of their form.
California Law requires banks and savings and loan institutions to pledge government securities
with a fair value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a
fair value of 150% of the deposit, as collateral for these deposits. Under California Law this
collateral is held in a separate investment pool by another institution in the City’s name and
places the City ahead of general creditors of the institution.
63 115
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
The City’s investments are carried at fair value, as required by generally accepted accounting
principles. The City adjusts the carrying value of its investments to reflect their fair value at each
fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
B. Classification
Cash and investments as of June 30, 2022 are classified in the financial statements as shown
below, based on whether or not their use is restricted under the terms of City debt instruments or
agency agreements.
Financial Statement Presentation:
Statement of Net Position:
City of South San Francisco:
Cash and investments available for operations $264,820,152
Restricted cash and investments 144,489,758
Total Primary Government cash and investments 409,309,910
Statement of Fiduciary Assets:
Cash and investments available for operations 1,837,374
Restricted cash and investments 40,101,280
Total Fiduciary cash and investments 41,938,654
Conference Center:
Cash and investments available for operations 3,374,045
Total South San Francisco
Conference Center cash and investments 3,374,045
Total cash and investments $454,622,609
The City does not allocate investments by fund. Each proprietary fund’s portion of Cash and
Investments Available for Operations is in substance a demand deposit available to finance
operations, and is considered a cash equivalent in preparing the statement of cash flows.
64 116
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
C. Investments Authorized by the California Government Code and the City’s Investment Policy
The City’s investment policy and the California Government Code allow the City to invest in the
following provided the credit ratings of the issuers are acceptable to the City and approved
percentages and maturities are not exceeded. The table below also identifies certain provisions of
the California Government Code, or the City’s Investment Policy where it is more restrictive:
Minimum Maximum Maximum
Maximum Credit Percentage Investment
Authorized Investment Type Maturity Quality (A) of Portfolio in One Issuer
U.S. Treasury Securities 5 years N/A No Limit No Limit
Federal Agency or U.S.
Sponsored Enterprise Obligations 5 years N/A No Limit 25%
Supranational Obligations 5 years AA 30% 10%
Corporate Medium-Term Notes 5 years A 30% 5%
Asset-Backed Securities 5 years AA 20% 5%
Commercial Paper 270 days A1,P1 25% 5%
Negotiable Certificates of Deposit 5 years A-1 or A 30%5%
Repurchase Agreements 90 days AA No Limit No Limit
Local Agency Investment Fund (LAIF) Upon Demand N/A $75 million No Limit
Money Market Mutual Funds N/A AAAm 20% 10%
Rating System, or its equivalent.
(A) The City's Investment Policy includes credit ratings provided by Standard and Poor's Investment
65 117
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City and the Successor Agency to the former Redevelopment Agency must maintain required
amounts of cash and investments with trustees or fiscal agents under the terms of certain debt
issues. These funds are unexpended bond proceeds or are pledged as reserves to be used if the
City or Successor Agency fail to meet its obligations under these debt issues. The California
Government Code requires these funds to be invested in accordance with City ordinance bond
indentures or State statute. The table below identifies the investment types that are authorized for
investments held by fiscal agents. The table also identifies certain provisions of these debt
agreements:
Minimum Maximum
Maximum Credit Percentage
Authorized Investment Type Maturity Quality of Portfolio
U.S. Treasury Obligations N/A N/A No Limit
Federal Agency or U.S. Government
Sponsored Enterprise Obligations N/A N/A No Limit
Federal Housing Administration Debentures N/A N/A No Limit
Bankers Acceptances 30 days A-1 or A-2 No Limit
Commercial Paper 270 days A1,P1 No Limit
Negotiable Certificates of Deposit 5 years A-1 or A No Limit
Guaranteed Investment Agreements N/A A1,P1 No Limit
Municipal Obligations N/A Aaa No Limit
State Obligations N/A A2 No Limit
Money Market Mutual Funds N/A AAAm No Limit
Repurchase Agreements 90 days AA No Limit
Local Agency Investment Fund (LAIF) Upon Demand N/A No Limit
E. Investments Authorized by the Authority
The City of South San Francisco Conference Center Authority follows the California Government
Code which authorizes an agency to invest in their own bonds, certain time deposits, obligations
of the U.S. Treasury, agencies and instrumentalities, commercial paper, bankers’ acceptances
with maturities not to exceed 270 days, and medium-term notes issued by corporations operating
within the U.S., commercial paper rated P-1 or higher by Moody’s or A-1 by Standard & Poor’s
commercial paper record, repurchase agreements of obligations of the U.S. Government or its
agencies for a term of one year or less and the Local Agency Investment Fund.
66 118
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
F. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity
of its fair value to changes in market interest rates. The City also manages its interest rate risk is
by holding most investments to maturity, thus reversing unrealized market gains and losses.
Information about the sensitivity of the fair values of the City’s investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by the following
table that shows the distribution of the City’s investments by maturity or earliest call date:
Remaining maturity
Less than One to Five
1 year Years Total
City and Fiduciary:
U.S. Treasury Notes $2,099,668 $52,601,590 $54,701,258
Federal Agency Securities 8,459,753 33,990,359 42,450,112
Local Agency Investment Fund 199,044,480 199,044,480
Money Market Funds 58,100,862 58,100,862
Corporate Medium Term Notes 499,974 46,106,533 46,606,507
Negotiable Certificates of Deposit 3,989,919 3,989,919
Asset-Backed Securities 212,664 22,608,817 22,821,481
Supranational Obligations 499,666 6,188,331 6,687,997
South San Francisco Conference Center:
Local Agency Investment Fund 2,963,633 2,963,633
Total Investments $275,870,619 $161,495,630 437,366,249
Cash in Banks and on Hand - City of South San Francisco 16,845,948
Cash in Banks and on Hand - South San Francisco Conference Center 410,412
Total Cash and Investments $454,622,609
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by
California Government Code Section 16429 under the oversight of the Treasurer of the State of
California. The City reports its investment in LAIF at the fair value amount provided by LAIF,
which is the same as the value of the pool share. The balance is available for withdrawal on
demand, and is based on the accounting records maintained by LAIF, which are recorded on an
amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per
month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75
million and at least 24 hours advance notice for withdrawals of $10 million or more. Bond
proceeds accounts are subject to a one‐time deposit with no cap and are set up with a monthly
draw down schedule. Included in LAIF’s investment portfolio are collateralized mortgage
obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds,
and floating rate securities issued by federal agencies, government-sponsored enterprises, United
States Treasury Notes and Bills, and corporations. At June 30, 2022, these investments have an
average maturity of 311 days.
Money market funds are available for withdrawal on demand and as of June 30, 2022 have an
average maturity of 43 to 49 days.
67 119
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
G. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the actual rating as of June 30, 2022, for each
of the Primary Government’s investment types as provided by Moody’s investment rating system,
except as noted:
Investment Type Aaa Aaa-mf Aa1-Aa3 A1-A3 P-1 Total
City and Fiduciary:
Federal Agency Securities $42,450,112 $42,450,112
Money Market Funds $58,100,862 58,100,862
Corporate Medium Term Notes 2,130,720 $7,229,229 $37,246,558 46,606,507
Negotiable Certificates of Deposit $3,989,919 3,989,919
Asset-Backed Securities 12,183,362 12,183,362
Supranational Obligations 6,687,997 6,687,997
Totals $63,452,191 58,100,862$ 7,229,229$ 37,246,558$ 3,989,919$ 170,018,759
City and Fiduciary:
Not rated:
Asset-Backed Securities 10,638,119 (A)
Local Agency Investment Fund 199,044,480
Exempt from credit rating disclosure:
U.S. Treasury Notes 54,701,258
Not rated:
Local Agency Investment Fund 2,963,633
Total Investments $437,366,249
South San Francisco Conference Center:
(A) Investments are not rated by Moody’s, but are rated AAA by Standard and Poor’s or Fitch investment
rating systems.
68 120
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
H. Fair Value Hierarchy
The City categorized its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure fair value of assets. Level 1 inputs are quoted prices in an active market for identical
assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant
unobservable inputs.
The following is a summary of the fair value hierarchy of the fair value of investments of the City
as of June 30, 2022:
Level 2 Total
Investments by Fair Value Level:
City and Fiduciary:
U.S. Treasury Notes $54,701,258 $54,701,258
Federal Agency Securities 42,450,112 42,450,112
Corporate Medium Term Notes 46,606,507 46,606,507
Negotiable Certificates of Deposit 3,989,919 3,989,919
Asset Backed Securities 22,821,481 22,821,481
Supranational Obligations 6,687,997 6,687,997
Totals $177,257,274 177,257,274
Investments Measured at Amortized Cost:
City and Fiduciary:
Money Market Mutual Funds 58,100,862
Investments Exempt from Fair Value Hierarchy:
City and Fiduciary:
Local Agency Investment Fund 199,044,480
South San Francisco Conference Center:
Local Agency Investment Fund 2,963,633
Total Investments $437,366,249
All Investments classified in Level 2 of the fair value hierarchy are valued using various pricing
techniques maintained by Interactive Data Pricing, including benchmark curves, sector groupings
and matrix pricing. These prices are obtained from various pricing sources by the City’s
investment manager. Money market funds were reported at amortized cost.
69 121
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 3 – CAPITAL ASSETS
A. Capital Asset Changes – Changes in capital assets during the fiscal year consist of:
Balance 6/30/2021
Additions and
Adjustments
Retirements and
Adjustments Transfers Balance 6/30/2022
Governmental activities
Capital assets not being depreciated:
Land $66,729,001 $5,520,422 $72,249,423
Construction in Progress 160,376,869 86,212,054 ($4,730,560) 241,858,363
Total capital assets not being depreciated 227,105,870 91,732,476 (4,730,560) 314,107,786
Capital assets being depreciated:
Buildings and Improvements 97,370,638 97,370,638
Infrastructure - Streets 200,865,274 4,730,560 205,595,834
Infrastructure - Storm Drains 8,927,492 8,927,492
Infrastructure - Traffic Control Devices 12,591,370 12,591,370
Equipment and Vehicle 7,390,599 7,390,599
Furniture and Fixtures 2,614,215 2,614,215
Total capital assets being depreciated 329,759,588 4,730,560 334,490,148
Less accumulated depreciation for:
Buildings and Improvements (44,877,725) (2,572,139) (47,449,864)
Infrastructure - Streets (116,531,398) (5,153,778) (121,685,176)
Infrastructure - Storm Drains (3,980,061) (204,500) (4,184,561)
Infrastructure - Traffic Control Devices (4,729,238) (510,781) (5,240,019)
Equipment and Vehicle (6,683,993) (83,154) (6,767,147)
Furniture and Fixtures (1,891,508) (87,167) (1,978,675)
Total accumulated depreciation (178,693,923) (8,611,519) (187,305,442)
Net Governmental Fund
Capital Assets Being Depreciated 151,065,665 (8,611,519)4,730,560 147,184,706
Internal Service Fund Capital Assets
Capital assets being depreciated:
Equipment and Vehicle 17,138,859 424,683 ($185,212) 17,378,330
Accumulated depreciation (12,186,122) (967,562) 177,911 (12,975,773)
Net Internal Service Fund Capital Assets
Being Depreciated 4,952,737 (542,879) (7,301) 4,402,557
Governmental activities capital assets, net $383,124,272 $82,578,078 ($7,301) $465,695,049
Total capital assets not being depreciated $227,105,870 $91,732,476 ($4,730,560) $314,107,786
Net capital assets being depreciated 156,018,402 (9,154,398) ($7,301) 4,730,560 151,587,263
Governmental activities capital assets, net $383,124,272 $82,578,078 ($7,301) $465,695,049
70 122
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 3 – CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2021 Additions Retirements Transfers June 30, 2022
Business-type activities
Capital assets, not being depreciated:
Land $794,587 $794,587
Construction in Progress 68,932,413 $15,051,042 83,983,455
Total capital assets not being depreciated 69,727,000 15,051,042 84,778,042
Capital assets being depreciated:
Buildings and Improvements 80,173,059 80,173,059
Clean Water Facilities and Lines 79,862,094 79,862,094
Infrastructure - Storm Drains 6,216,365 6,216,365
Infrastructure - Streets 7,377,546 7,377,546
Equipment and Vehicle 18,455,546 18,455,546
Furniture and Fixtures 31,154 31,154
Total capital assets being depreciated 192,115,764 192,115,764
Less accumulated depreciation for:
Buildings and Improvements (22,816,048) (2,056,389)(24,872,437)
Clean Water Facilities and Lines (35,054,212) (1,936,594)(36,990,806)
Infrastructure - Storm Drains (1,570,732) (187,980)(1,758,712)
Infrastructure - Streets (2,469,401) (209,570)(2,678,971)
Equipment and Vehicle (13,466,816) (716,906)(14,183,722)
Furniture and Fixtures (31,154)(31,154)
Total accumulated depreciation (75,408,363) (5,107,439)(80,515,802)
Net capital assets being depreciated 116,707,401 (5,107,439)111,599,962
Business-type activities capital assets, net $186,434,401 $9,943,603 $196,378,004
Balance
June 30, 2021 Balance
(as restated) Additions Retirements June 30, 2022
Component Unit:
South San Francisco Conference Center
Depreciable:
Buildings and Improvements $10,909,288 $10,909,288
Furniture and Fixtures 950,814 ($18,421) 932,393
Machinery and Equipment 582,722 $40,220 (23,227) 599,715
Total Depreciable 12,442,824 40,220 (41,648) 12,441,396
Right of Use Assets:
Leased Land 1,948,783 1,948,783
14,391,607 40,220 (41,648) 14,390,179
Less accumulated depreciation and
amortization
Depreciable (9,904,838) (592,036) 41,648 (10,455,226)
Leased Land (278,398) (278,398)
(9,904,838) (870,434) 41,648 (10,733,624)
Component Unit Capital Assets, Net $4,486,769 ($830,214) $3,656,555
71 123
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 3 – CAPITAL ASSETS (Continued)
B. Capital Asset Contributions – Some capital assets may have been acquired using federal and
State grant funds, or were contributed by developers or other governments. Contributed capital
assets are valued at their estimated acquisition value on the date contributed. Generally accepted
accounting principles require that these contributions be accounted for as revenues at the time the
capital assets are contributed.
C. Depreciation Allocation – Depreciation expense is charged to functions and programs based on
their usage of the related assets. The amounts allocated to each function or program are as
follows:
Governmental Activities
Governmental functions
General government $729,438
Fire 316,406
Police 64,491
Public works 6,815,642
Parks and recreation 566,692
Library 67,241
Economic and community development 51,609
Total Governmental Functions 8,611,519
Internal Service Funds 967,562
Total Governmental Activities $9,579,081
Business-Type Activities
Sewer Enterprise $4,814,962
Parking District 252,638
Storm Water 39,839
Total Business-Type Activities $5,107,439
NOTE 4 – INTER-FUND TRANSACTIONS
A. Internal Balances
Internal balances are presented in the entity-wide financial statements only. They represent the
net interfund receivables and payables remaining after the elimination of all such balances within
governmental and business-type activities.
72 124
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 4 – INTER-FUND TRANSACTIONS (Continued)
B. Inter-Fund Receivables and Payables
Amounts due to or due from other funds reflect inter-fund balances for services rendered or short-
term loans expected to be repaid in the next fiscal year.
Due From Other Fund Due to Other Fund Amount
General Fund Capital Improvement Capital Projects Fund $430,000
Storm Water Enterprise Fund 630,000
Community Development Block Grant Special Revenue Fund 210,000
$1,270,000
C. Transfers
Transfers between funds during the fiscal year ended June 30, 2022 were as follows:
FROM FUND (OUT) TO FUND (IN)AMOUNT
General Fund Capital Improvements Capital Projects Fund $3,642,829
Capital Infrastructure Reserve Capitol Projects Fund 8,500,000
Capital Improvements Civic Campus Capital Projects Fund 102,542
Non-Major Governmental Funds 8,287,833
Storm Water Enterprise Fund 250,000
Internal Service Fund 452,406
American Rescue Plan Act Special Revenue Fund General Fund 2,560,000
Capital Improvement Capital Projects Fund 84,259
Capital Improvements Capital Projects Fund Non-Major Governmental Funds 2,362
East of 101 Sewer Impact Fees Capital Projects Fund Sewer Enterprise Fund 107,818
Traffic Impact Fees Capital Projects Fund Capital Improvement Capital Projects Fund 5,929,676
Child Care Impact Fees Capital Projects Fund Capital Improvement Capital Projects Fund 99,499
Capital Infrastructure Reserve Capital Projects Fund General Fund 1,104,832
Low and Moderate Income Housing Asset Special Revenue Fund 2,784
Capital Improvement Capital Projects Fund 1,107,190
Non-Major Governmental Funds 34,464
Sewer Enterprise Fund 234,720
Parking District Enterprise Fund 1,440
Storm Water Enterprise Fund 36,720
Internal Service Fund 619,440
Non-Major Governmental Funds General Fund 1,098,897
Capital Improvement Capital Projects Fund 3,606,224
Sewer Enterprise Fund 147,072
Storm Water Enterprise Fund 698,541
Internal Service Fund 60,459
Sewer Enterprise Capital Improvement Capital Projects Fund 57,076
Total $38,829,083
73 125
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 5 – LONG-TERM DEBT
A. Current Year Transactions and Balances
A summary of governmental and business-type activities transactions for the fiscal year ended
June 30, 2022 follows:
Authorized
and Balance at Balance at Current
Issued June 30, 2021 Additions Retirement June 30, 2022 Portion
Governmental Activities
Lease Revenue Bonds:
2020A Police Station Project, 4.00 to 5.00% (1) $43,905,000 $42,970,000 $980,000 $41,990,000 $1,030,000
Plus: Unamortized bond premium 9,483,824 379,353 9,104,471
2021A Community Civic Campus Project, 4.00% (2) 86,410,000 86,410,000 2,210,000 84,200,000 2,155,000
Plus: Unamortized bond premium 18,116,565 724,663 17,391,902
2022A Orange Memorial Park Project, 4.00 to 5.25% (3) 65,420,000 $65,420,000 65,420,000
Plus: Unamortized bond premium 6,686,317 6,686,317
Total Lease Revenue Bonds 195,735,000 156,980,389 72,106,317 4,294,016 224,792,690 3,185,000
Direct Borrowing:
2007 Loans Payable to the Successor Agency (4) 3,595,152 1,445,000 2,150,152
Leases Financings (5):
2013 Fire Truck 285,529 140,892 144,637 144,637
Total Leases Financings 285,529 140,892 144,637 144,637
Total Direct Borrowing 3,880,681 1,585,892 2,294,789 144,637
Net Governmental Long-Term Debt $195,735,000 $160,861,070 $72,106,317 $5,879,908 $227,087,479 $3,329,637
Business-Type Activities
Revenue Bonds:
2005 Water and Wastewater Revenue Bonds, $6,000,000 $2,325,000 $345,000 $1,980,000 $360,000
2.75 to 4.75%, due 04/30/26 (6)
Direct Borrowing:
1999 State Water Resources Loan, 2.6%, due 8/1/22 (7) 47,721,252 6,300,086 3,109,618 3,190,468 3,190,468
2004 State Water Resources Loan, 2.5%, due 1/1/27 (7) 21,258,529 6,513,692 1,239,209 5,274,483 1,270,190
2008 State Water Resources Loan, 2.4%, (8) 9,164,505 4,179,619 480,127 3,699,492 491,650
2018 State Water Resources Loan, 1.8% (9) 53,403,000 43,487,062 $5,147,945 48,635,007
Total Direct Borrowing 131,547,286 60,480,459 5,147,945 4,828,954 60,799,450 4,952,308
Net Business-Type Long-Term Debt $137,547,286 $62,805,459 $5,147,945 $5,173,954 $62,779,450 $5,312,308
(1) 2020A Lease Revenue Bonds – In February 2020, the City of South San Francisco Public
Facilities Financing Authority entered into a $43.9 million lease agreement to finance costs of the
acquisition, construction, and installation of certain capital improvements constituting the new
City police station, located within the City’s new Civic Center Campus, and related
improvements, facilities and equipment, and pay the costs incurred in connection with the
issuance of the Series 2020A Bonds. The Series 2020A Bonds are equally and ratably payable
from base rental payments to be made by the City for the right to use certain real property
consisting of a City-owned parking garage and a City-owned park. The lease agreement contains
provisions that in an event of default, the lessor may exercise any and all remedies available to it
under the lease agreement, including the right to enforce the terms of the lease.
74 126
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 5 – LONG-TERM DEBT (Continued)
(2) 2021A Lease Revenue Bonds – In May 2021, the City of South San Francisco Public
Facilities Financing Authority entered into a $86.4 million lease agreement to finance costs of the
acquisition, construction, and installation of certain capital improvements constituting a new City
library, council chamber, parks and recreation facilities, and a community theater to be located
within the City’s new Civic Center Campus, street and roadway improvements located within the
City, solar equipment to be located on City property, and related improvements, facilities and
equipment, and pay the costs incurred in connection with the issuance of the Series 2021A Bonds.
The Series 2021A Bonds are equally and ratably payable from base rental payments to be made
by the City for the right to use certain real property consisting of the same City-owned parking
garage and City-owned park pledged under the 2020A Bonds and six additional properties,
including the property on which the first two phases of the Community Civic Campus project is
being constructed. The lease agreement contains provisions that in an event of default, the lessor
may exercise any and all remedies available to it under the lease agreement, including the right to
enforce the terms of the lease.
(3) 2022A Lease Revenue Bonds – In May 2022, the City of South San Francisco Public
Facilities Financing Authority entered into a $65.4 million lease agreement to finance costs of the
acquisition, construction and installation of certain capital improvements of the City to be located
at the City-owned Orange Memorial Park and pay the costs incurred in connection with the
issuance of the Series 2022A Bonds. The Series 2022A Bonds are equally and ratably payable
from base rental payments to be made by the City for the right to use certain real property
consisting of the same properties pledged under the 2021A Bonds. The lease agreement contains
provisions that in an event of default, the lessor may exercise any and all remedies available to it
under the lease agreement, including the right to enforce the terms of the lease.
(4) As of June 30, 2022, the Oyster Point Improvements Impact Fund owed the Successor Agency
(formerly the Merged Redevelopment Project Area Capital Project Fund) for developer fees in the
amount of $3,595,152 for the Flyover and Hookramps Projects that were completed in prior years.
The outstanding balance will be paid off from the future developer fees. With the dissolution of the
Agency effective January 31, 2012, the Successor Agency assumed the asset which the City is to
repay. This payable is recorded as a long-term obligation (see also Note 14). Prior to the dissolution
of all Redevelopment Agencies in California by the State, the former Redevelopment Agency
(Agency) advanced $12,176,207 to the Oyster Point Improvement Impact Fee Capital Projects Fund
(the Oyster Point Fund). The impact fees are collected according to a fee methodology adopted
under the terms of AB 1600. The fees are assessed against commercial development in a specific
geographic area that is primarily east of Highway 101 to repay the former Agency for the funds it
advanced to the Oyster Point Fund to pay for freeway interchange improvements at Highway 101
and Oyster Point Blvd, and are assessed per an adopted Engineering report's formula that measures
each new development's impact on the area's trip traffic. While the former Agency advanced the
funds, the impact fee was put in place specifically to charge future developers for their share of
traffic trips generated prior to the construction of the improvements. When the Agency was
dissolved, the Successor Agency, and therefore, all local taxing entities, are entitled to receive
future Oyster Point Impact fees collected by the City from developers. Future developers, not the
City of South San Francisco, are legally obligated to pay the future fees until the liability owed to
the Successor Agency is paid off as long as the fee continues to be levied and is in place. The
repayment has significantly slowed since 2007, as development has subsided and fees assessed have
therefore dropped. Management believes it may take 10-30 years or more before the Successor
Agency is fully paid back.
75 127
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 5 – LONG-TERM DEBT (Continued)
(5) The City has entered into long-term lease financing agreements with various financing
agencies. Under these leases, all leased assets shall be distributed to the City at the end of the
lease terms and shall thereafter remain the sole property of the City. Therefore, these leases have
been recorded at the present value of the future minimum lease payments at the date of inception
of the lease, and the corresponding assets have been included in the Statement of Net Position as
appropriate. Lease financing payments are made from revenues of the Equipment Replacement
Internal Service Fund and the General Fund. The lease agreements contain provisions that in an
event of default, the lessor may (a) seize the properties, (b) sell or lease the properties or (c) exercise
any and all remedies available to it under applicable law, including the right to enforce the terms of
the lease, recover damages from the breach of the lease, and rescind the lease as to any portion of or
all of the properties.
(6) On October 25, 2005, the California Statewide Communities Development Authority issued
2005D Water and Wastewater Revenue Bonds. The City participated in the pooled bond sale
and the City’s portion of the debt is $6,000,000. Proceeds were used to finance sewer system
capital improvement.
The principal payments on the debt commenced in October 2006 and principal is due each
October 1. The final principal payment is due on October 1, 2026. Interest payments ranging
from the rates of 2.75% to 4.75% are payable semi-annually each April 1 and October 1.
As of June 30, 2022, the City is in compliance with the provisions of Article VI of the Installment
Purchase Agreement associated with the 2005D Bonds.
The 1999 and 2004 State Water Resources Loans and the 2005D Water and Wastewater Revenue
Bonds are secured by a pledge of net revenues of the City’s Sewer Enterprise Fund. Net
Revenues available for debt service amounted to $8.3 million which represented coverage of 1.62
over the $5,126,802 in total debt service.
(7) The two loans were authorized by the State Water Resources Control Board (SWRCB) to
improve and expand the City’s wastewater treatment plant. Loan proceeds were issued as the
projects progressed and debt service payments commenced one year after project completion. The
loan agreements include provisions that in an event of default, all principal payments shall be
immediately due and payable, interests on all amounts owed shall be paid at the highest legal rate,
any additional payments shall be made and SWRCB shall enforce its rights under the agreements
by any judicial proceeding, whether in law or equity.
(8) 2008 State Water Resources Control Board Loan – In November 2007, the City approved
the $11.8 million loan agreement with the SWRCB to finance the City’s Wet Weather Program
project. Under the terms of the contract, the City has agreed to repay $11.8 million to the State in
exchange for receiving $9.2 million in proceeds to be used to fund the Project. The difference
between the repayment obligation and proceeds amounted to $2.6 million and represents in-
substance interest on the outstanding balance. Debt service payments commenced on August 15,
2009.
76 128
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 5 – LONG-TERM DEBT (Continued)
(9)2018 State Water Resources Control Board Loan – In September 2018, the City entered into a
$53.4 million loan agreement with the SWRCB to finance the South San Francisco/San Bruno’s
Water Quality Control Plant Wet Weather and Digester Project. A portion of this amount, $4 million,
is anticipated to be forgiven on the date of completion of construction. For the remaining $49.4
million, under the terms of the loan agreement the City has agreed to repay $59.2 million to the
State. The difference between the repayment obligation and proceeds amounted to $9.8 million
and represents in-substance interest on the outstanding balance.
As of June 30,2022, the City has drawn down $48.6 million from SWRCB, with the remaining
balance of $4.8 million expected to be drawn down in fiscal year 2023. There was no debt service
payment required in fiscal year 2022, with the first debt service payment due in fiscal year ending
2024. Future debt service is expected to average $3 million per year through fiscal year 2043.
In the event default has occurred, the City shall, upon demand, immediately accelerate the
payment of all principal owed under this loan agreement, if any, which shall be immediately due
and payable; pay interest at the highest legal rate on all amounts owed; and pay any additional
payments as defined in the loan agreement.
The 2008 and 2018 loans are secured by a pledge of sewer service charge revenues of the City’s
Sewer Enterprise Fund. Sewer service charge revenues available for debt service amounted to
$22.6 million which represented coverage of 42 over the $538,642 in debt service.
B. Debt Service Requirements
Annual debt service requirements are shown below for all long-term debt with specified
repayment terms:
Governmental Activities Business-Type Activities
For the Year Lease Revenue Bonds
2005 Water and
Wastewater Revenue Bonds
Ended June 30 Principal Interest Principal Interest
2023 $3,185,000 $8,280,065 $360,000 $90,000
2024 3,320,000 8,205,338 375,000 71,625
2025 5,170,000 8,058,737 395,000 52,375
2026 5,410,000 7,826,538 415,000 32,125
2027 5,650,000 7,580,287 435,000 10,875
2028-2032 32,225,000 33,938,388
2033-2037 39,855,000 26,306,437
2038-2042 49,280,000 16,877,788
2043-2047 47,515,000 5,414,012
191,610,000 $122,487,590 $1,980,000 $257,000
Plus: Unamortized bond premium 33,182,690
$224,792,690
77 129
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 5 – LONG-TERM DEBT (Continued)
Future debt service requirements, including interest and leases financings, but excluding the 2007
Loan payable to the Redevelopment Successor Agency and the 2018 State Water Resources Loan
at June 30, 2022, were as follows:
For the Year Governmental Activities Business-Type Activities
Ended June 30 Principal Interest Principal Interest
2023 $144,637 $2,870 $4,952,308 $266,607
2024 1,805,393 145,017
2025 1,850,025 105,421
2026 1,895,761 64,842
2027 540,574 23,253
2028-2032 1,120,382 23,621
Totals 144,637 $2,870 12,164,443 $628,761
2007 Loans Payable 2,150,152
2018 State Water Resources Loan 48,635,007
$2,294,789 $60,799,450
Direct Borrowings
Lease financing agreements are issued for the purpose of financing the construction or acquisition
of projects defined in each leasing arrangement. Projects are leased to the City for lease
payments which, together with unspent proceeds of the leasing arrangement, will be sufficient to
meet the debt service obligations of the leasing arrangement. At the termination of the leasing
arrangement, title to the project will pass to the City.
Leasing arrangements are similar to debt; they allow investors to participate in a share of
guaranteed payments which are made by the City. Because they are similar to debt, the present
value of the total of the payments to be made by the City is recorded as long-term debt. The
City’s leasing arrangements are included in long term obligations discussed above.
A summary of capital assets leased through the issuance of leasing arrangements follows:
Original
Leasing Arrangement Fund/Activity Cost
Capital Leases Governmental Activity $5,842,799
C. Legal Debt Margin
The City is subject to a debt limit that is 3.75% of the total assessed value of property, net of
exempt real property. At June 30, 2022, that amount was $924,439,440. As of June 30, 2022, the
City did not have any outstanding debt applicable to the limit.
D. Debt without City Commitment
In April 2022 the Community Facilities District No. 2021-01 Special Tax Bonds, Series 2022 in
the amount of $19,685,000 were issued by the City of South San Francisco Community Facilities
District No. 2021-01. The City is the collecting and paying agent for the debt issued by the
District, but has no direct or contingent liability or moral obligation for the payment of this debt.
As of June 30, 2022 the outstanding balance of the issue was $19,685,000.
78 130
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 6 – NET POSITION AND FUND BALANCES
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows of resources over all its
liabilities and deferred inflows of resources, regardless of fund. Net Position is divided into three
captions. These captions apply only to Net Position, which is determined only at the
Government-wide level, and are described below:
Net Investment in Capital Assets describes the portion of Net Position which is represented by the
current net book value of the City’s capital assets, less the outstanding balance of any debt issued
to finance these assets.
Restricted describes the portion of Net Position which is restricted as to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws, or other
restrictions which the City cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted to use.
B. Fund Balance
The City’s fund balances are classified in accordance with generally accepted accounting
principles which require the City to classify its fund balances based on spending constraints
imposed on the use of resources.
For programs with multiple funding sources, the City prioritizes and expends funds in the
following order: Restricted, Committed, Assigned, and Unassigned. Each category in the
following hierarchy is ranked according to the degree of spending constraint.
Nonspendables represents balances set aside to indicate items do not represent available,
spendable resources even though they are a component of assets. Fund balances required to be
maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such
as prepaids, notes receivable, and land held for redevelopment are included. However, if
proceeds realized from the sale or collection of nonspendable assets are restricted, committed or
assigned, then Nonspendable amounts are required to be presented as a component of the
applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors,
laws, regulations, or enabling legislation which requires the resources to be used only for a
specific purpose. Nonspendable amounts subject to restrictions are included along with spendable
resources.
Committed fund balances have constraints imposed by Council Resolution of the City Council
which may be altered only by Council Resolution of the City Council. Nonspendable amounts
subject to council commitments are included along with spendable resources.
79 131
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 6 – NET POSITION AND FUND BALANCE (Continued)
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific
purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its
designee and may be changed at the discretion of the City Council or its designee. The City
Council had delegated authority to the Finance Director to assign fund balances which are not
otherwise restricted or committed. This category includes nonspendables, when it is the City’s
intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of
Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or
committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or
assigned. This includes the residual general fund balance and residual fund deficits, if any, of other
governmental funds.
Minimum Fund Balance Policies – The City’s Reserve Policy is to have the General Fund
Reserves equal to at least two months of operating revenues of 15% and up to 20%, which is in
alignment with GFOA best practices. Included is an emergency reserve that reflects 2% of the
general fund operating expenditures budget as well as an economic contingency which is 7% of
general fund revenues. Funds in excess of these requirements will continue to be earmarked for
paying down long-term liabilities, such as the Retiree Health/Other Post-Employment Benefits
(OPEB) or for Infrastructure and Facilities Replacement needs.
Detailed classifications of the City’s Fund Balances, as of June 30, 2022, are below:
Low and Moderate East of 101
General Income Housing Capital Sewer Traffic
Fund Balance Classifications Fund Assets Improvement Impact Fees Impact Fees
Nonspendables:
Items not in spendable form:
Inventory and prepaid items $4,099
Total Nonspendable Fund Balances 4,099
Restricted for:
Sewer Impact Fees $4,872,806
Traffic impact fees projects $24,761,557
Civic campus projects $16,847,198
Low and moderate housing projects $3,029,092
Redevelopment and community development activities 14,763,033
Total Restricted Fund Balances 14,763,033 3,029,092 16,847,198 4,872,806 24,761,557
Committed for:
Capital projects 4,244,813
Local services 11,839,164
Total Committed Fund Balances 16,083,977
Assigned to:
Capital projects 7,482,439
Total Assigned Fund Balances 7,482,439
Unassigned:
General fund 38,313,108
Other fund deficits (1,437,892)
Total Unassigned Fund Balances 38,313,108 (1,437,892)
Total Fund Balances $76,646,656 $3,029,092 $15,409,306 $4,872,806 $24,761,557
Capital Project Funds
80 132
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 6 – NET POSITION AND FUND BALANCE (Continued)
Capital Project Funds
Capital
Capital Capital Capital Improvements Other
Child Care Infrastructure Improvements Improvements Orange Governmental
Fund Balance Classifications (continued) Impact Fees Reserve Fund Police Station Civic Campus Memorial Park Funds
Restricted for:
Child Care impact fees projects $13,901,164
Police station projects $468,782
Civic campus projects $37,280,365 $71,684,403
Gas Tax projects $287,907
Developer contributions projects 7,567,347
Community Development Block Grant projects 163,662
Maintenance districts projects 4,859,706
Transportation sales tax projects 3,713,678
City programs projects 10,908,572
Other Special Revenues projects 9,044,236
Capital projects activities 34,191,712
Total Restricted Fund Balances 13,901,164 468,782 37,280,365 71,684,403 70,736,820
Assigned to:
Capital infrastructure projects $24,889,824
Total Assigned Fund Balances 24,889,824
Total Fund Balances $13,901,164 $24,889,824 $468,782 $37,280,365 $71,684,403 $70,736,820
C. Encumbrances
The City uses an encumbrance system as an extension of normal budgetary accounting for
governmental funds. Under this system, purchase orders, contracts, and other commitments for
the expenditure of monies are recorded in order to reserve that portion of applicable
appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed or
assigned fund balance, depending on the classification of the resources to be used to liquidate the
encumbrance, since they do not constitute expenditures or liabilities. Unexpended appropriations
lapse at year-end and must be reappropriated in the following year. Encumbrances outstanding in
governmental funds as of June 30, 2022, were as listed below:
Governmental funds:Amount
General Fund $7,482,439
Low and Moderate Income Housing Assets Special Revenue Fund 10,743
Capital Improvement Capital Projects Fund 27,517,978
Capital Infrastructure Reserve Capital Projects Fund 1,617,850
Capital Improvements Police Station Capital Projects Fund 47,722
Capital Improvements Civic Campus Capital Projects Fund 34,182,728
Other Governmental Funds 2,677,758
Total $73,537,218
81 133
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLANS
For purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of the
City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions
to/deductions from the Plans’ fiduciary net position have been determined on the same basis as
they are reported by the CalPERS Financial Office. 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.
A. General Information about the Pension Plans
Plan Descriptions – All qualified permanent and probationary employees are eligible to
participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans,
agent multiple-employer defined benefit pension plans administered by the California Public
Employees’ Retirement System (CalPERS), which acts as a common investment and
administrative agent for its participating member employers. Benefit provisions under the Plans
are established by State statute and City resolution.
CalPERS issues publicly available reports that include a full description of the pension plans
regarding benefit provisions, assumptions and membership information that can be found on the
CalPERS website.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of
living adjustments and death benefits to plan members, who must be public employees and
beneficiaries. Benefits are based on years of credited service, equal to one year of full time
employment. Members with five years of total service are eligible to retire at age 50 with
statutorily reduced benefits. 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 1957
Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments
for each plan are applied as specified by the Public Employees’ Retirement Law.
82 134
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows:
Miscellaneous
Classic Plan* Tier 2 Plan* PEPRA Plan
Prior to After On or after
Hire date April 25, 2010 April 25, 2010 January 1,2013
Benefit formula 2.7% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 50 - 55 50 - 67 52 - 67
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.092% to 2.418% 1.0% to 2.5%
Required employee contribution rates 8%7%6.5%
Required employer contribution rates 9.99%9.99%9.99%
Required Unfunded Actuarial Liability Contribution $6,718,047
* Effective July 2021, Classic Plan and Tier 2 Plan members in the Executive Management Unit are required to pay an
additional 2% for their share of pension costs.
Safety
Classic Plan ** Tier 2 Plan ** PEPRA Plan
Hire date Prior to
April 25, 2010
After
April 25, 2010
On or after
January 1, 2013
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 50 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 3% 2.4% to 3.0% 2.0% to 2.7%
Required employee contribution rates 9%9%11.5%
Required employer contribution rates 20.59%20.59%20.59%
Required Unfunded Actuarial Liability Contribution $8,906,578
** Effective October 2018, Classic Plan and Tier 2 Plan members in the Executive Management Unit are required to pay an
additional 2% for their share of pension costs.
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a
percentage of payroll for the normal cost portion as noted in the rates above and as a dollar
amount for contributions toward the unfunded liability (UAL). The dollar amounts are billed on a
monthly basis or the City can elect a lump sum payment option. The City’s required contributions
for the unfunded liability in the Miscellaneous and Safety Plans for the year ended June 30, 2022
were $6,718,047 and $8,906,578, respectively, which were made under the lump sum payment
option.
Employees Covered – As of the June 30, 2020 actuarial valuation date and the June 30, 2021
measurement date, the following employees were covered by the benefit terms for the Plans:
Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 481 297
Inactive employees entitled to but not yet receiving benefits 396 104
Active employees 283 158
Total 1,160 559
83 135
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires
that the employer contribution rates for all public employers be determined on an annual basis by
the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding
contributions for both Plans are determined annually on an actuarial basis as of June 30 by
CalPERS. 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 City is required to contribute the difference between the
actuarially determined rate and the contribution rate of employees. Employer Contribution rates
may change if plan contracts are amended.
B. Net Pension Liability
The City’s net pension liability for each Plan is measured as the total pension liability, less the
pension plan’s fiduciary net position. The net pension liability of each Plan is measured as of
June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30,
2021 using standard update procedures. The long-term portion of governmental activities net
pension liability is liquidated primarily by the General Fund. A summary of principal
assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions – The total pension liabilities as of the June 30, 2021 measurement date
were based on the following actuarial assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Payroll Growth
Salary Increase
Investment Rate of Return
Mortality
Post Retirement Benefit Increase
(1) Actuarial assumptions are the same for all benefi tiers (Classic Tier 1, Classic Tier II, and PEPRA)
(2) Depending on age, service and type of employment.
(3)Net of pension plan investment expenses, including inflation.
Miscellaneous and Safety (1)
6/30/2020
6/30/2021
Entry-Age Normal Cost Method
7.15%
(4) The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are based
on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality
rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of
Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial
Assumptions report from December 2017 that can be found on the CalPERS website.
2.50%
(2)
7.15% (3)
The lesser of contract COLA or 2.50% until Purchasing Power Protection
Allowance Floor on Purchasing Power applies, 2.50% thereafter
Derived using CalPERS Membership Data for all Funds (4)
2.75%
84 136
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
The underlying mortality assumptions and all other actuarial assumptions used in the June 30,
2020 valuation were based on the results of a December 2017 actuarial experience study for the
period 1997 to 2015. Further details of the Experience Study can be found on the CalPERS
website.
Discount Rate – The discount rate used to measure the total pension liability was 7.15%. The
projection of cash flows used to determine the discount rate for each Plan assumed that
contributions from all plan members in the Public Employees Retirement Fund (PERF) 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, each
Plan’s fiduciary net position was projected to be available to make all projected future benefits
payments of current plan members for all plans in the PERF. Therefore, the long- term expected
rate of return on plan investment was applied to all periods of projected benefit payment to
determine the total pension liability for each Plan.
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 as well as the expected pension fund cash flows. Using
historical returns of all the fund’s asset classes, expected compound (geometric) returns were
calculated over the short- term (first 10 years) and the long -term (11+ years) using a building-
block approach. Using the expected nominal returns for both short- term and long- term, the
present value of benefits was calculated for each fund. The expected rate of return was set by
calculating the rounded single equivalent expected return that arrived at the same present value of
benefits for cash flows as the one calculated using both short- term and long- term returns. The
expected rate of return was then set equal to the single equivalent rate calculated above and
adjusted for assumed administrative expenses.
The table below reflects the long-term expected real rates of return by asset class.
Asset Class(a)
Assumed
Asset
Allocation
Real Return
Years 1 - 10(b)
Real Return
Years 11+(c)
Public Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
Total 100%
(a) In the CalPERS's Annual Comprehensive Financial Reports, Fixed income is included in
Global Debt Securities; Liquidity is included in Short-Term Investments; Inflation Assets are
included in both Global Equity Securities and Global Debt Securities.
(b) An expected inflation of 2.0% used for this period.
(c) An expected inflation of 2.92% used for this period.
85 137
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
C. Changes in the Net Pension Liability
The changes in the Net Pension Liability for each Plan are as follows:
Miscellaneous Plan:
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2020 (Measurement Date)$254,824,922 $167,734,633 $87,090,289
Changes in the year:
Service cost 4,274,015 4,274,015
Interest on the total pension liability 17,951,111 17,951,111
Changes of benefit terms
Chases of assumptions
Differences between actual and expected experience 1,018,943 1,018,943
Plan to plan resource movement
Contribution - employer 8,623,876 (8,623,876)
Contribution - employees 2,006,497 (2,006,497)
Net investment income 38,008,815 (38,008,815)
Benefit payments, including refunds of employee
contributions (13,832,759) (13,832,759)
Administrative expenses (167,557) 167,557
Other Miscellaneous Income/(Expense)
Net changes 9,411,310 34,638,872 (25,227,562)
Balance at June 30, 2021 (Measurement Date)$264,236,232 $202,373,505 $61,862,727
Safety Plan:
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2020 (Measurement Date)$359,168,480 $240,958,874 $118,209,606
Changes in the year:
Service cost 7,072,216 7,072,216
Interest on the total pension liability 25,441,168 25,441,168
Changes of benefit terms
Chases of assumptions
Differences between actual and expected experience 1,772,836 1,772,836
Plan to plan resource movement
Contribution - employer 12,413,770 (12,413,770)
Contribution - employees 2,893,339 (2,893,339)
Net investment income 54,912,645 (54,912,645)
Benefit payments, including refunds of employee
contributions (17,313,787) (17,313,787)
Administrative expenses (240,703) 240,703
Other Miscellaneous Income/(Expense)
Net changes 16,972,433 52,665,264 (35,692,831)
Balance at June 30, 2021 (Measurement Date)$376,140,913 $293,624,138 $82,516,775
Grand Total - Both Plans $640,377,145 $495,997,643 $144,379,502
86 138
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following
presents the net pension liability of the City for each Plan, calculated using the discount rate for
each Plan, as well as what the City’s net pension liability would be if it were calculated using a
discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pension Liability $95,542,624 $133,020,062
Current Discount Rate 7.15% 7.15%
Net Pension Liab ility $61,862,727 $82,516,775
1% Increase 8.15% 8.15%
Net Pension Liability $33,959,512 $40,965,167
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary
net position is available in the separately issued CalPERS financial reports.
D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the City recognized pension expense of $4,436,373 and
$5,970,893 for the Miscellaneous and Safety Plans, respectively, for total pension expense of
$10,407,266. At June 30, 2022, the City reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Miscellaneous Plan:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $9,491,640
Changes of assumptions
Differences between actual and expected experience 1,100,830
Net differences between projected and actual earning s on
plan investments ($18,914,071)
Total $10,592,470 ($18,914,071)
Safety Plan:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $13,387,919
Changes of assumptions
Differences between actual and expected experience 1,671,857
Net differences between projected and actual earning s on
plan investments ($27,272,371)
Total $15,059,776 ($27,272,371)
Grand Total $25,652,246 ($46,186,442)
87 139
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
$22,879,559 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended
June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized as pension expense as follows:
Miscellaneous Plan:
Year Ended Annual
June 30 Amortization
2023 ($3,928,150)
2024 (4,110,738)
2025 (4,542,742)
2026 (5,231,611)
Safety Plan:
Year Ended Annual
June 30 Amortization
2023 ($5,867,151)
2024 (5,672,976)
2025 (6,504,757)
2026 (7,555,630)
E.Subsequent Event – Reduction of CalPERS Discount Rate
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal
year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy
approved by the CalPERS Board in 2015, the excess return of 14.3% prescribes a reduction in
investment volatility that corresponds to a reduction in the discount rate used for funding
purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year
Asset Liability Management (ALM) cycle, the CalPERS Board elected to defer any changes to
the asset allocation until the ALM process concluded, and the board could make its final decision
on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset
allocation along with the new capital market assumptions, economic assumptions and
administrative expense assumption support a discount rate of 6.80% (net of investment expense,
but without a reduction for administrative expense) for financial reporting purposes. This
includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in
the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This
study also recommended modifications to retirement rates, termination rates, mortality rates and
rates of salary increases that were adopted by the CalPERS Board. These new assumptions will
be reflected in the CalPERS GASB 68 accounting valuation reports for the June 30, 2022,
measurement date.
88 140
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 8 – DEFERRED COMPENSATION PLAN
City employees may defer a portion of their compensation under a City sponsored Deferred
Compensation Plan created in accordance with Internal Revenue Code Section 457. Under this
Plan, participants are not taxed on the deferred portion of their compensation until it is distributed
to them; distributions may be made only at termination, retirement, death or in an emergency as
defined by the Plan. The City does not make any contributions to the Plan.
The City has no liability for any losses incurred by the Plan and does not participate in any gains,
but does have the duty of due care that would be required of an ordinary prudent investor. The
City has a contract with Empower Retirement to manage and invest the assets of the Plan. The
assets in the Plan are the sole property of the participants or their beneficiaries. Since the assets
held under the Plan are not the City’s property and are not subject to claims by general creditors
of the City, they have been excluded from these financial statements. The Plan requires
investments to be stated at fair value and it requires all gains and losses on Plan investments to
accrue directly to participant accounts.
The laws governing deferred compensation plan assets require plan assets to be held by a Trust
for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under
these plans are not the City’s property and are not subject to City control, they have been
excluded from these financial statements.
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS
A. General Information about the City’s Other Post Employment Benefit (OPEB) Plans
The City provides certain health care benefits for all employees who retire after attaining age 50
with at least five years of service or disability at any age. The City provides certain health care
benefits for those employees hired prior to April 25, 2010. In order to reduce the City’s OPEB
obligations over time, the City changed to a defined contribution post-retirement health plan for
employees hired as of April 25, 2010 or after. For those new hires, the City is now providing a
medical after retirement health plan (MARA), and contributes 1.5% of salary for those
employees.
B. Defined Benefit Plan Description
The City’s Post Employment Benefit Plan for employees hired prior to April 25, 2010 is an agent
multiple-employer defined benefit OPEB plan.
The City joined the California Employers’ Retiree Benefit Trust (CERBT), an agent multiple-
employer plan administered by CalPERS, consisting of an aggregation of single-employer
plans. The CERBT issues a publicly available financial report that includes financial statements
and required supplementary information. That report may be obtained from the California Public
Employees’ Retirement System, CERBT, P.O. Box 942703, Sacramento, CA 94229-2703.
89 141
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
Benefits provided – The following is a summary of Plan benefits by employee group as of June 30,
2022:
Eligibility • Hired < 4/25/2010
• Retire directly from City and elect coverage:
• Age 50 and 5 years City service or
• Disability retirement with 5 years City service
Benefit • City pays single premium up to largest HMO single premium
Cap for 2021/22:
- $1,430.80/month pre-65 (Blue Shield)
- $785.04/month post-65 Medicare eligible (Blue Shield)
- $1,971.53/ month post-65 not Medicare eligible (Kaiser)
• Medi care ine ligible retirees allowed to stay in t heir pre-
Medicare premium plans after age 65
Surviving Spouse
Benefit
• Participation with premium payment
• AFSCME, Local 1569, Mid-Management, IAFF
surviving spouses covered 2 months following death of
Other OPEB • City also reimburses Medicare Part B
• No City-paid contribution for dental, vision, or life
For the year ended June 30, 2022, the City’s contributions to the Plan were $4,810,361.
Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the
measurement date of June 30, 2020:
Active employees 181
Inactive employees or beneficiaries currently
receiving benefit payments 368
Total 549
C. OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of Resources Related to
OPEB
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred
inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net
position of the City’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 the California
Employers’ Retiree Benefit Trust (CERBT). For this purpose, benefit payments are recognized
when currently due and payable in accordance with the benefit terms. Investments are reported at
fair value. The long-term portion of governmental activities net OPEB liability is liquidated
primarily by the General Fund.
90 142
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
D. Net OPEB Liability
Actuarial Methods and Assumptions – The City’s net OPEB liability was measured as of June
30, 2021 and the total OPEB liability used to calculate the net OPEB liability was determined by
an actuarial valuation dated June 30, 2021, based on the following actuarial methods and
assumptions:
Valuation Date • June 30, 2021
Measurement Date • June 30, 2021
Contribution Policy • City contributes $802,000 per year into trust
Actuarial Cost Method • Entry Age Normal, Level Percentage of Payroll
Amortization Method • Level dollar
Amortization Period • Average of 21 years remaining for 2021/22
• 6.25% at June 30, 2021
• 6.75% at June 30, 2020
• Expected City contributions projected to keep sufficient plan
assets to pay all benefits from trust.
Inflation • 2.50% per annum
Salary Increases • Aggregate - 2.75% annually
• Merit - CalPERS 1997-2015 Experience Study
Healthcare/Medical Trend • Non-Medicare - 6.75% for 2022, decreasing to an ultimate
rate of 3.75% in 2076 and later years
• Medicare (Non-Kaiser) - 5.85% for 2022, decreasing to an
ultimate rate of 3.75% in 2076 and later years
• Medicare (Kaiser) - 4.75 for 2022, decreasing to an ultimate
rate of 3.75% in 2076 and later years
Mortality, Retirement, Disability, Termination • CalPERS 1997-2015 Experience Study
Mortality Improvement • Mortality projected fully generational with Scale MP-2021
Healthcare participation for future retirees • 100% if covered, 95% if waived
Discount Rate and Long-Term Expected
Rate of Return on Assets
Actuarial Assumptions
91 143
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
The long-term expected rate of return on OPEB plan investments was determined using a building-
block method in which expected future real rates of return (expected returns, net of OPEB plan
investment expense and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected future real
rates of return by the target asset allocation percentage and by adding expected inflation. The target
allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Global equity 59.0%4.56%
Fixed income 25.0%0.78%
TIPS 5.0%0.08%
Commodities 3.0%1.22%
REITs 8.0%4.06%
Total 100.0%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Term Net Rate of Return, Rounded 6.25%
Discount Rate – The discount rate used to measure the total OPEB liability was 6.75%. The
projection of cash flows used to determine the discount rate assumed that City contributions will be
made at rates equal to actuarially determined contribution rates. Based on those assumptions, the
OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB
payments for current active and inactive employees and beneficiaries. Therefore, the long-term
expected rate of return on OPEB plan investments was applied to all periods of projected benefit
payments to determine the total OPEB liability.
Changes of Assumptions – For the measurement date of June 30, 2022, the discount rate decreased
from 6.75% to 6.25%, the inflation rate decreased from 2.75% to 2.50%, the payroll growth rate
decreased from 3.00% to 2.75%, the medical trend rate for Kaiser Senior Advantage decreased from
7.0% to 6.75% and the mortality improvement scale was updated to Scale MP- 2021.
92 144
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
E. Changes in Net OPEB Liability
The changes in the net OPEB liability follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (a) - (b)
Balance at June 30, 2020 Measurement Date $90,241,209 $25,868,613 $64,372,596
Changes Recognized for the Measurement Period:
Service Cost 1,515,601 1,515,601
Interest on the total OPEB liability 6,058,295 6,058,295
Changes in benefit terms
Differences between expected and actual experience (3,331,956) (3,331,956)
Changes of assumptions 1,446,069 1,446,069
Contributions from the employer 4,810,361 (4,810,361)
Net investment income 7,140,915 (7,140,915)
Benefit payments (4,008,599) (4,008,599)
Administrative expenses (9,829)9,829
Net changes 1,679,410 7,932,848 (6,253,438)
Balance at June 20, 2021 Measurement Date $91,920,619 $33,801,461 $58,119,158
Increase (Decrease)
F. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost
Trend Rates
The following presents the net OPEB liability of the City, as well as what the City's net OPEB
liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.75%)
or 1-percentage-point higher (7.75%) than the current discount rate:
Net OPEB Liability/(Asset)
Discount Rate -1% Current Discount Rate Discount Rate +1%
(5.75%) (6.75%) (7.75%)
$70,042,838 $58,119,158 $48,248,701
The following presents the net OPEB liability of the City, as well as what the City's net OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point
lower or 1-percentage-point higher than the current healthcare cost trend rates as discussed in the
assumptions above:
Net OPEB Liability/(Asset)
Current Healthcare Cost
1% Decrease Trend Rates 1% Increase
$48,009,017 $58,119,158 $70,365,417
93 145
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
G. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2022, the City recognized OPEB expense of $4,372,607. At June 30,
2022, the City reported deferred outflows and inflows of resources related to OPEB from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Employer contributions made subsequent to the measurement date $4,868,877
Differences between actual and expected experience 483,000 ($2,183,006)
Changes of assumptions 947,425 (808,048)
Net differences between projected and actual earnings on
plan investments (3,831,526)
Total $6,299,302 ($6,822,580)
$4,868,877 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30,
2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized as part of OPEB expense as follows:
Year Annual
Ended June 30 Amortization
2023 ($1,800,034)
2024 (1,598,303)
2025 (916,853)
2026 (1,076,965)
H. Defined Contribution Plan
The City of South San Francisco funded HRA Plan is a defined contribution OPEB plan for
employees hired on or after April 25, 2010. For those new hires, the City provides a medical after
retirement health plan (MARA), and contributes 1.5% of salary for those employees. In addition,
employees contribute to the MARA plan as directed by their respective bargaining unit’s
Memorandum of Understanding or compensation plan.
The plan is administered by Matrix Trust Company. Employee contributions for the fiscal year
totaled $397,012. Employer contributions of $493,299 were paid into the Defined Contribution
Plan. No liability for the defined contribution has been included in the report since the City fully
paid the annual required contribution. Since the assets held under this plan are not the City’s
property and are not subject to claims by general creditors of the City, the assets have been
excluded from these financial statements.
94 146
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 10 – LEASES
A. Policies
A lease is defined as a contract that conveys control of the right to use another entity’s
nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an
exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land,
vehicles, and equipment. The City recognizes lease receivable or liabilities with an initial,
individual value of $1,000,000 or more, based on the present value of future lease payments
remaining at the start of the lease.
Lessee – The City does not have any noncancellable leases of nonfinancial assets as of June 30,
2022, other than the financed purchase discussed in Note 5. The Conference Center Authority is
a lessee for the noncancellable lease of the Conference Center from the City. At the
commencement of a lease, City or Conference Center Authority recognize a lease liability and an
intangible right‐to‐use lease asset (lease asset) in the government‐wide financial statements.
At the commencement of a lease, the City or Conference Center Authority initially measures the
lease liability at the present value of payments expected to be made during the lease term.
Subsequently, the lease liability is reduced by the principal portion of lease payments made. The
lease asset is initially measured as the initial amount of the lease liability, adjusted for lease
payments made at or before the lease commencement date, plus certain initial direct costs.
Subsequently, the lease asset is amortized on a straight‐line basis over its useful life.
Key estimates and judgments related to leases include how the City or Conference Center
Authority determines (1) the discount rate it uses to discount the expected lease payments to
present value, (2) lease term, and (3) lease payments as follows:
• The City or Conference Center Authority uses the interest rate charged by the lessor as
the discount rate. When the interest rate charged by the lessor is not provided, the City or
Conference Center Authority generally uses its respective estimated incremental
borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease.
• Lease payments included in the measurement of the lease liability are composed of fixed
payments and purchase option price that the City or Conference Center Authority is
reasonably certain to exercise.
The City and Conference Center Authority monitor changes in circumstances that would require a
remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur
that are expected to significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with long-term
debt on the statement of net position.
Lessor – The City is a lessor for a noncancellable leases of buildings, billboards and facilities.
The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide
and fund financial statements.
95 147
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 10 – LEASES (Continued)
At the commencement of a lease, the City initially measures the lease receivable at the present
value of payments expected to be received during the lease term. Subsequently, the lease
receivable is reduced by the principal portion of lease payments received. The deferred inflow of
resources is initially measured as the initial amount of the lease receivable, adjusted for lease
payments received at or before the lease commencement date. Subsequently, the deferred inflow
of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to
discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as
follows:
• The City uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease.
• Lease receipts included in the measurement of the lease receivable is composed of fixed
payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and
will remeasure the lease receivable and deferred inflows of resources if certain changes occur that
are expected to significantly affect the amount of the lease receivable.
B. Leases Receivable
The balances related to leases receivable and deferred inflows of resources as of June 30, 2022
were:
Lease Deferred Inflows
Receivable of Resources
Governmental Activities
Leases Receivable (Lessor)
General Fund:
Conference Center $2,409,308 $2,404,923
Costco 4,165,186 4,107,234
Billboards 6,881,282 6,695,107
Low and Moderate Income Housing Assets Fund:
Magnolia 1,197,345 1,183,182
Total governmental activities leases receivable $14,653,121 $14,390,446
96 148
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 10 – LEASES (Continued)
Conference Center – The Conference Center Authority, a discrete component unit, leases land
from the City under an operating lease commencing on January 1, 1999, with a 30-year term from
February 1, 1999, to January 31, 2029. The rent amount is subject to re-negotiation at the option
of either party between January 1 and February 28, 2009 and 2019. The cost and carrying
amount of leased land under this lease receivable is $5,040,000. The City recognized $343,560 in
lease revenue and $82,454 in interest revenue during the current fiscal year related to this lease.
Also, the City has deferred inflows of resources associated with these leases that will be
recognized as revenue over the lease term.
Costco – Price Club Associates leases the land for the Costco store on South Airport Boulevard
from the City. Lease payments are based on a percentage of Costco’s gross annual sales, with
minimum annual rent set at $400,000, payable in monthly installments of $33,333. In fiscal
2014, Costco exercised the option to extend the lease through fiscal year 2029, with an option for
a 6 year extension through fiscal year 2035. The City recognized $328,579 in lease revenue and
$129,373 in interest revenue during the current fiscal year related to this lease. Also, the City has
deferred inflows of resources associated with these leases that will be recognized as revenue over
the lease term.
Billboards – The City leases digital billboard space to third parties under three lease agreements.
The original terms of the leases were thirty years and as of June 30, 2022, the leases had 22 to 29
years remaining. The rent is based on a minimum annual guaranteed payment, paid on an annual
basis, which increases 15% every five years. The City recognized $252,169 in lease revenue and
$208,007 in interest revenue during the current fiscal year related to these leases. Also, the City
has deferred inflows of resources associated with these leases that will be recognized as revenue
over the lease term.
Magnolia – Magnolia Housing leases the land for Magnolia Plaza Senior Apartments from the
City. Minimum lease payments are set at $51,800, and are payable through the fiscal year 2062.
The City recognized $29,580 in lease revenue and $36,383 in interest revenue during the current
fiscal year related to this lease. Also, the City has deferred inflows of resources associated with
these leases that will be recognized as revenue over the lease term.
C. Lease Payable
The Conference Center Authority’s lease payable consists of the following as of June 30, 2022:
Balance
June 30, 2021 Balance Current
(as restated) Deductions June 30, 2022 Portion
Land Lease $2,748,483 $339,176 $2,409,307 $349,429
97 149
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 10 – LEASES (Continued)
The Authority has a property lease agreement with the City of South San Francisco for 30 years
expiring in 2029. Under the agreement, the City subleases to the Authority, the property in
exchange for the annual lease payment for the use of land. During the fiscal year, the lease
payments totaled $420,000. The total principal and interest paid during the year was $80,824 and
$339,176, respectively. The initial present value of the right of use asset and lease liability, at a
treasury bond rate of 3.00% over the thirty years, was $2,748,483. The balance of the right of use
asset as of June 30, 2022 was $1,948,783, net of accumulated amortization, which is reported
with the Authority’s capital assets in Note 3. The balance of the lease liability as of June 30, 2022
was $2,409,307. There are termination clauses included in the lease agreement, however
management has determined that it is not likely that those clauses will be exercised.
Future minimum lease payments as of June 30, 2022 are as follows:
Year Ending Principal Interest
June 30 Payments Payments Total
2023 $349,429 $70,571 $420,000
2024 359,990 60,010 420,000
2025 370,871 49,129 420,000
2026 382,080 37,920 420,000
2027 393,629 26,371 420,000
2028-2029 553,308 16,692 570,000
$2,409,307 $260,693 $2,670,000
NOTE 11 – JOINTLY GOVERNED ORGANIZATIONS
The City participates in the jointly governed organizations discussed below through formally
organized and separate entities established under the Joint Exercise of Powers Act of the State of
California. As separate legal entities, these entities exercise full powers and authorities within the
scope of the related Joint Powers Agreements including the preparation of annual budgets,
accountability for all funds, the power to make and execute contracts and the right to sue and be
sued. Each joint organization is governed by a board consisting of representatives from member
municipalities. Each board controls the operations of the respective joint organization, including
selection of management and approval of operating budgets, independent of any influence by
member municipalities beyond their representation on that board. Obligations and liabilities of
this joint organization are not the City’s responsibility and the City does not have an equity
interest in the assets of each joint organization except upon dissolution of the joint organization.
A. Oyster Point Marina
(OPM) was established in 1977 by the City and the San Mateo County Harbor District (Harbor
District) for the purpose of expanding, improving and operating the Oyster Point Marina and
Park. The governing board consists of two of the City's council members and two Harbor District
commissioners. The Harbor District operates OPM. Operation of the Marina provides revenues
for the marina's operations. The City retains title to the land; however, the City is not liable for
any obligations of the San Mateo County Harbor District. Condensed unaudited financial
information may be obtained from San Mateo County Harbor District, #1 Johnson Pier, Half
Moon Bay, CA 94019.
98 150
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 11 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
B.Peninsula Traffic Congestion Relief Alliance (PTCRA)
PTCRA was formed from the merger of the Inter City Transportation Systems Management
Agency and Multi-City Transportation Systems Management Agency (MCTSMA) in 2000. The
members are the cities of South San Francisco, Brisbane, Colma, Daly City, Half Moon Bay,
Millbrae, Pacifica and San Bruno and seven other members for the purpose of mitigating traffic
congestion. The governing board consists of one council member from each member city. The
finance director of the City of San Carlos acts as the treasurer and controller of PTCRA. The
individual cities are not liable for the debts, liabilities or obligations of PTCRA. Each member
city has an equal interest in PTCRA. Condensed accrual basis unaudited financial information
may be obtained from the City of San Carlos Finance Department, 666 Elm Street, San Carlos,
CA 94070.
C.City/County Association of Governments (C/CAG)
C/CAG was established in 1990 by the County of San Mateo and the Cities of San Mateo County
for preparation, adoption, monitoring and enforcing of Countywide state mandated plans. A Board
of Directors consisting of one council member from each member city and one member from the
County Board of Supervisors governs C/CAG. The city treasurer of San Carlos acts as the treasurer
of C/CAG. The individual cities and the County are not liable for the debts, liabilities, or obligations
of C/CAG. Condensed unaudited cash basis financial information may be obtained from the City of
San Carlos Finance Department, 666 Elm Street, San Carlos, CA 94070.
NOTE 12 – RISK MANAGEMENT
A.Insurance Coverage
The City participates in Pooled Liability Assurance Network Joint Powers Authority (PLAN
JPA), a nonprofit benefit corporation established to provide liability insurance coverage, claims
and risk management, and legal defense to its participating members. PLAN JPA provides
$1,000,000 of self- funded general liability and automobile coverage (except $250,000 is for the
Employee benefits Plan Administration liability) and $29,000,000 excess liability coverage per
occurrence and is responsible for paying claims in excess of the City’s $100,000 self-insured
retention. The Plan includes a per occurrence or wrongful act or employee benefit wrongful act
up to $10,000,000 with two retained limits of $5,000,000. For the year ended June 30, 2022, the
City paid PLAN JPA $2,036,357 in premiums and did not receive a refund of premiums paid in
prior years. Financial statements may be obtained from PLAN JPA 1750 Creekside Oaks Drive,
Suite 200, Sacramento, CA 95833.
The City has also purchased excess coverage insurance for worker’s compensation claims from
Public Risk, Innovation, Solutions and Management (PRISM) (formerly CSAC Excess Insurance
Authority (CSAC-EIA)). PRISM provides coverage up to statutory limits in excess of the City’s
$500,000 self-insured retention. For the past five fiscal years, general liability and worker
compensation settlements did not exceed insurance coverage.
99 151
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 12 – RISK MANAGEMENT (Continued)
B. Liability for Uninsured Claims
The City provides for the uninsured portion of claims and judgments in the Self Insurance
Internal Service Fund. Claims and judgments, including a provision for claims incurred but not
reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is
reasonably determinable. As discussed above, the City has coverage for such claims, but it has
retained the risk for the deductible or uninsured portion of these claims.
The City’s liability for uninsured claims is limited to workers’ compensation and general liability
claims, as discussed above, and was estimated by management based on prior year’s claims
experience as follows:
June 30, 2022 Fiscal Year
Workers' General 2020-2021
Compensation Liability Total Total
Balance, beginning of year $15,696,000 $53,797 $15,749,797 $14,965,224
Current year claims and changes in
estimates of prior years claims 2,608,615 282,672 2,891,287 3,637,605
Claims Paid (2,061,615) (96,211) (2,157,826) (2,853,032)
Balance, end of year $16,243,000 $240,258 $16,483,258 $15,749,797
Current portion $2,807,000 $240,258 $3,047,258 $2,878,797
NOTE 13 – COMMITMENTS AND CONTINGENCIES
A. Litigation
The City is subject to litigation arising in the normal course of business. In the opinion of the
City Attorney there is no pending litigation which is likely to have a material adverse effect on
the financial position of the City.
B. Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs have been audited by
the City’s independent auditors in accordance with the provisions of the Federal Single Audit Act
as amended and applicable State requirements. No cost disallowances were proposed as a result
of these audits; however, these programs are still subject to further examination by the grantors
and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot
be determined at this time. The City expects such amounts, if any, to be immaterial.
100 152
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 13 – COMMITMENTS AND CONTINGENCIES (Continued)
C.Miller Parking Garage
The Miller Parking Garage (“Parking Garage)”, constructed in 2011, is located at 329 Miller
Avenue in the City. The Parking Garage consists of a five-level open-air concrete structure
building of approximately 100,000 square feet with 244 parking spaces. Approximately 14,350
square feet of commercial and office space (the “Commercial Space”) is located on the ground
floor of the Parking Garage.
In February 2020, the City sold the Commercial Space for $1,247,950. In connection with the
sale of the Commercial Space, a condominium map was recorded with the County to create
separate assessor parcel numbers for the Commercial Space and the balance of the property
included within the Parking Garage. No rights to the parking spaces were granted to the owners
of the Commercial Space in connection with its sale. However, the owners of the Commercial
Space may use such spaces upon payment to the City of the applicable parking fees.
D. Construction Contract Dispute
Following a competitive bid process, the City awarded a contract for construction of certain
improvements related to the Grand Boulevard Initiative. The project finished well past the
contract completion date and the City withheld funds for late completion and to correct
incomplete and defective work. The City and the contractor engaged a third-party mediator, but
were unable to resolve the dispute at mediation in August 2022. The contractor filed a complaint
in San Mateo County Superior Court on September 14, 2022, seeking $6,500,000 in
compensatory damages, interest, and costs of suit. No trial date has been set as of November
2022. The City disputes the allegations and intends to vigorously pursue affirmative claims
against the contractor. The City may be negatively impacted should the court rule in favor of the
contractor, however any such impact cannot be determined at this time.
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES
The activities of the Successor Agency are reported in the Successor Agency to the former
Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the
Oversight Board. The City provides administrative services to the Successor Agency to wind
down the affairs of the former Redevelopment Agency.
On July 1, 2018, the duties of the South San Francisco Oversight Board transferred to a new San
Mateo Countywide Oversight Board, which will now be responsible for overseeing the winddown
affairs of all Successor Agencies in San Mateo County, including the Successor Agency to the
South San Francisco Redevelopment Agency.
Information presented in the following footnotes represents assets and liabilities of the Successor
Agency.
A. Cash and Investments
Cash and investments of the Successor Agency as of June 30, 2022 are discussed in Note 2 to the
financial statements. Information presented in the following footnotes represents other assets and
liabilities of the Successor Agency as of June 30, 2022.
101 153
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
B. Loans Receivable
The Successor Agency assumed the non-housing loans receivable of the former Redevelopment
Agency as of February 1, 2012. The former Redevelopment Agency engaged in programs
designed to encourage construction of or improvement to low-to-moderate income housing.
Under these programs, grants or loans were provided to homeowners or developers who agreed to
expend these funds in accordance with the Agency’s terms.
C. Capital Assets
The Successor Agency assumed the capital assets of the former Redevelopment Agency as of
February 1, 2012. All capital assets are valued at historical cost or estimated historical cost if
actual historical cost is not available. Contributed capital assets are valued at their acquisition
value. The Successor Agency’s policy is to capitalize all assets with costs exceeding certain
minimum thresholds and with useful lives exceeding two years.
All capital assets with limited useful lives are depreciated over their estimated useful lives. The
purpose of depreciation is to spread the cost of capital assets equitably among all users over the
life of these assets. The amount charged to depreciation expense each year represents that year’s
pro rata share of the cost of capital assets.
Depreciation of all capital assets is charged as an expense against operations each year and the
total amount of depreciation taken over the years, called accumulated depreciation, is reported on
the balance sheet as a reduction in the book value of capital assets.
Depreciation is provided using the straight line method which means the cost of the asset is
divided by its expected useful life in years and the result is charged to expense each year until the
asset is fully depreciated. The Successor Agency has assigned the useful lives listed below to
capital assets:
Buildings 50 years
Improvements 30 years
Machinery and equipment 5-20 years
Furniture and fixtures 12 years
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase is reflected in the capitalized value of the asset
constructed, net of interest earned on the invested proceeds over the same period. The
capitalization level is $20,000 for vehicles, and $100,000 for all else, including all other
equipment that is not a vehicle.
102 154
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
Capital assets recorded at June 30 are comprised of:
Balance Balance
June 30, 2021 Retirement June 30, 2022
Fiduciary activities
Capital assets not being depreciated:
Land $111,219 $111,219
Total capital assets not
being depreciated 111,219 111,219
Capital assets being depreciated:
Buildings and Improvements 329,671 329,671
Equipment and Vehicle 242,190 242,190
Furniture and Fixtures 21,506 21,506
Total capital assets being depreciated 593,367 593,367
Less accumulated depreciation for:
Buildings and Improvements (84,953) ($6,594) (91,547)
Equipment and Vehicle (242,190)(242,190)
Furniture and Fixtures (21,506)(21,506)
Total accumulated depreciation (348,649) (6,594) (355,243)
Net capital assets being depreciated 244,718 (6,594) 238,124
Fiduciary activity capital assets, net $355,937 ($6,594) $349,343
D. Defeased Bonds
As of June 30, 2022, the outstanding balance of defeased debt was $3,905,000 for the 1997
Downtown /Central Redevelopment Tax Allocation Bonds.
E. Commitments And Contingencies
State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semi-
annually that contains all proposed expenditures for the subsequent six-month period. The ROPS
is subject to the review and approval of the Oversight Board as well as the State Department of
Finance. Although the State Department of Finance may not question items included on the
ROPS in one period, they may question the same items in a future period and disallow associated
activities. The amount, if any, of current obligations that may be denied by the State Department
of Finance cannot be determined at this time. The City expects such amounts, if any, to be
immaterial.
103 155
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
State Asset Transfer Review
The activities of the former Redevelopment Agency and the Successor Agency were also subject
to further examination by the State of California. The State Controller’s Office conducted a
review of the propriety of asset transfers between the former Redevelopment Agency or the
Successor Agency and any public agency that occurred on or after January 1, 2011. The results of
that review were issued in July 2015 and although the review did identify ineligible transfers of
assets from the former Redevelopment Agency to the City, the report reflected the current year
and prior year transfers and made no further demands for the return of assets to the Successor
Agency.
104 156
REQUIRED SUPPLEMENTARY INFORMATION
157
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021
Total Pension Liability
Service cost $3,449,973 $3,075,813 $3,079,994 $3,922,518 $4,001,207 $4,118,735 $4,267,487 $4,274,015
Interest on total pension liability 13,930,544 14,393,013 14,870,988 15,430,998 15,885,315 16,624,514 17,306,781 17,951,111
Changes of benefit terms
Changes of assumptions (3,374,655)12,421,358 (1,361,078)
Difference between expected and actual experience (1,567,798) (476,337) 1,958,164 187,342 2,853,948 1,771,483 1,018,943
Benefit payments, including refunds of employee
contributions (9,287,975) (10,407,243) (11,085,829) (11,565,392) (12,164,689) (12,756,888) (13,336,957) (13,832,759)
Net change in total pension liability 8,092,542 2,119,130 6,388,816 22,167,646 6,548,097 10,840,309 10,008,794 9,411,310
Total pension liability - beginning 188,659,588 196,752,130 198,871,260 205,260,076 227,427,722 233,975,819 244,816,128 254,824,922
Total pension liability - ending (a)$196,752,130 $198,871,260 $205,260,076 $227,427,722 $233,975,819 $244,816,128 $254,824,922 $264,236,232
Plan fiduciary net position
Contributions - employer $4,235,454 $4,546,984 $5,726,981 $5,228,454 $6,165,764 $6,851,659 $7,823,463 $8,623,876
Contributions - employee 1,466,176 1,411,273 1,622,453 1,720,600 1,727,041 1,816,507 1,883,698 2,006,497
Net investment income 21,712,340 3,221,551 687,860 15,616,363 12,458,090 10,240,873 8,084,207 38,008,815
Benefit payments, including refunds of employee
contributions (9,287,975) (10,407,243) (11,085,829) (11,565,392) (12,164,689) (12,756,888) (13,336,957) (13,832,759)
Plan to plan resource movement (50,555) 229 (365) (20) (32)
Administrative expense (160,268) (86,726) (205,472) (233,683) (112,374) (230,510) (167,557)
Other miscellaneous income (443,767) 365
Net change in plan fiduciary net position 18,125,995 (1,438,258) (3,135,032) 10,794,553 7,508,391 6,040,122 4,223,869 34,638,872
Plan fiduciary net position - beginning 125,614,993 143,740,988 142,302,730 139,167,698 149,962,251 157,470,642 163,510,764 167,734,633
Plan fiduciary net position - ending (b)$143,740,988 $142,302,730 $139,167,698 $149,962,251 $157,470,642 $163,510,764 167,734,633 202,373,505
Net pension liability - ending (a)-(b)$53,011,142 $56,568,530 $66,092,378 $77,465,471 $76,505,177 $81,305,364 $87,090,289 $61,862,727
Plan fiduciary net position as a percentage of the total
pension liability 73.06% 71.56% 67.80% 65.94% 67.30% 66.79% 65.82% 76.59%
Covered payroll $17,725,581 $17,798,104 $21,409,193 $29,390,370 $23,630,354 $24,993,270 $26,275,955 $27,681,286
Net pension liability as percentage of covered payroll 299.07% 317.83% 308.71% 263.57% 323.76% 325.31% 331.44% 223.48%
Notes to Schedule:
*Fiscal year 2015 was the 1st year of implementation.
Benefit changes:The figures above do not include any liability impact that may have resulted from plan changes
which occurred after the June 30 valuation date. This applies for voluntary benefit changes as well as any offers of
Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes in assumptions: In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019, 2020, and 2021,
there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate form 7.5% (net of administrative expense)
to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount
rate.
106 158
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 2021 2022
Actuarially determined contribution $4,210,973 $5,399,856 $5,228,454 $6,166,024 $6,851,659 $7,831,598 $8,616,536 $9,491,640
Contributions in relation to the actuarially
determined contributions 4,210,973 5,399,856 5,228,454 6,166,024 6,851,659 7,831,598 8,616,536 9,491,640
Contribution deficiency (excess)$0 $0 $0 $0 $0 $0 $0 $0
Covered payroll $17,798,104 $21,409,193 $29,390,370 $23,630,354 $24,993,270 $26,275,955 $27,681,286 $28,788,170
Contributions as a percentage of covered payroll 23.66% 25.22% 17.79% 26.09% 27.41% 29.81% 31.13% 32.97%
Notes to Schedule
Valuation date: 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation 2.75% for 2015 to 2019, and 2.625% for 2020, and 2.50% for 2021 and 2022
Salary increases
Investment rate of return
Retirement age
Mortality
*Fiscal year 2015 was the 1st year of implementation
Varies by entry age and service
7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, and 7.00%
for 2021 and 2022, net of administrative expenses, including inflation
The probabilities of Retirement are based on the CalPERS Experience
Study.
The probabilities of mortality are based on the CalPERS Experience
Study. Pre-retirement and Post-retirement mortality rates include 20
years of projected mortality improvement using Scale AA published by
the Society of Actuaries for 2015 to 2018. For 2019, 2020, 2021, and
2022, pre-retirement and post-retirement mortality rates include 15 years
of projected mortality improvement using 90% of Scale MP-2016
published by the Society of Actuaries.
107 159
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022
Safety Agent Multiple-Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021
Total Pension Liability
Service cost $5,143,842 $4,968,087 $5,329,842 $6,264,307 $6,511,672 $6,379,124 $6,880,000 $7,072,216
Interest on total pension liability 18,899,544 19,398,484 20,134,558 21,238,842 22,129,483 23,249,091 24,284,010 25,441,168
Changes of benefit terms
Changes of assumptions (4,789,129)18,010,606 (1,293,579)
Difference between expected and actual experience (4,226,388) (915,267) 4,520,149 1,318,613 2,853,684 742,624 1,772,836
Benefit payments, including refunds of employee
contributions (13,161,296) (13,556,606) (14,463,995) (14,760,979) (15,629,698) (15,909,734) (16,384,059) (17,313,787)
Net change in total pension liability 10,882,090 1,794,448 10,085,138 35,272,925 13,036,491 16,572,165 15,522,575 16,972,433
Total pension liability - beginning 256,002,648 266,884,738 268,679,186 278,764,324 314,037,249 327,073,740 343,645,905 359,168,480
Total pension liability - ending (a)$266,884,738 $268,679,186 $278,764,324 $314,037,249 $327,073,740 $343,645,905 $359,168,480 $376,140,913
Plan fiduciary net position
Contributions - employer $6,535,399 $7,191,715 $8,535,737 $8,071,060 $9,323,936 $10,164,921 $11,402,434 $12,413,770
Contributions - employee 2,151,163 1,714,039 1,961,907 1,980,507 2,134,552 2,486,989 2,890,991 2,893,339
Net investment income 29,348,051 4,264,997 950,612 21,553,126 17,363,158 14,404,633 11,506,885 54,912,645
Benefit payments, including refunds of employee
contributions (13,161,296) (13,556,606) (14,463,995) (14,760,979) (15,629,698) (15,909,734) (16,384,059) (17,313,787)
Plan to plan resource movement (229) (512) 20 32
Administrative expense (219,696) (118,968) (283,579) (325,104) (157,625) (326,879) (240,703)
Other miscellaneous income (617,378) 512
Net change in plan fiduciary net position 24,873,317 (605,551) (3,134,936) 16,560,135 12,248,954 10,989,716 9,089,404 52,665,264
Plan fiduciary net position - beginning 170,937,835 195,811,152 195,205,601 192,070,665 208,630,800 220,879,754 231,869,470 240,958,874
Plan fiduciary net position - ending (b)$195,811,152 $195,205,601 $192,070,665 $208,630,800 $220,879,754 $231,869,470 $240,958,874 $293,624,138
Net pension liability - ending (a)-(b) $71,073,586 $73,473,585 $86,693,659 $105,406,449 $106,193,986 $111,776,435 $118,209,606 $82,516,775
Plan fiduciary net position as a percentage of the total
pension liability 73.37% 72.65% 68.90% 66.44% 67.53% 67.47% 67.09% 78.06%
Covered payroll $15,994,412 $16,679,857 $18,986,895 $19,563,549 $21,932,480 $22,975,254 $24,264,339 $24,378,494
Net pension liability as percentage of covered payroll 444.37% 440.49% 456.60% 538.79% 484.19% 486.51% 487.17% 338.48%
Notes to Schedule:
*Fiscal year 2015 was the 1st year of implementation.
Benefit changes.The figures above do not include any liability impact that may have resulted from plan changes which occurred after the
June 30 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a.
Golden Handshakes).
Changes in assumptions: In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019, 2020, and 2021, there
were no changes. In 2015, amounts reported reflect an adjustment of the discount rate form 7.5% (net of administrative expense) to 7.65%
(without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.
108 160
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022
Safety Agent Multiple-Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 2021 2022
Actuarially determined contribution $7,191,715 $8,538,138 $8,071,060 $9,322,781 $10,164,821 $11,401,783 $12,413,770 $13,387,919
Contributions in relation to the actuarially
determined contributions 7,191,715 8,538,138 8,071,060 9,322,781 10,164,821 11,401,783 12,413,770 13,387,919
Contribution deficiency (excess)$0 $0 $0 $0 $0 $0 $0 $0
Covered payroll $16,679,857 $18,986,895 $19,563,549 $21,932,480 $22,975,254 $24,264,339 $24,378,494 $24,325,363
Contributions as a percentage of covered payroll 43.12%44.97% 41.26% 42.51% 44.24% 46.99% 50.92% 55.04%
Notes to Schedule
Valuation date:6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation 2.75% for 2015 to 2019, and 2.625% for 2020, and 2.50% for 2021 and 2022
Salary increases Varies by entry
Investment rate of return 7.50% for 2015
to 2018, 7.375%
Retirement age The
Mortality The
probabilities of
mortality are
based on the
CalPERS
Experience
Study. Pre-
*Fiscal year 2015 was the 1st year of implementation
109 161
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS
Retiree Healthcare OPEB Plan - Agent Multiple Employer
Last 10 fiscal years*
(Amounts in 000's)
Measurement Date 6/30/17 6/30/18 6/30/2019 6/30/2020 6/30/2021
Total OPEB Liability
Service Cost $1,574 $1,535 $1,558 $1,604 $1,516
Interest 5,087 5,325 5,568 5,952 6,058
Changes in benefit terms
Differences between expected and actual experience 91 2,895 (3,332)
Changes of assumptions (672)(1,859)1,446
Benefit payments (2,901)(3,326)(3,378)(4,052)(4,009)
Net change in total OPEB liability 3,760 3,625 5,971 1,645 1,679
Total OPEB liability - beginning 75,240 79,000 82,625 88,596 90,241
Total OPEB liability - ending (a)$79,000 $82,625 $88,596 $90,241 $91,920
Plan fiduciary net position
Contributions - employer $3,703 $4,128 $4,180 $4,854 $4,810
Contributions - employee
Net investment income 1,803 1,566 1,402 838 7,141
Administrative expense (9)(37)(5)(12)(9)
Benefit payments (2,901)(3,326)(3,378)(4,052)(4,009)
Net change in plan fiduciary net position 2,596 2,331 2,199 1,628 7,933
Plan fiduciary net position - beginning 17,114 19,710 22,041 24,240 25,868
Plan fiduciary net position - ending (b)$19,710 $22,041 $24,240 $25,868 $33,801
Net OPEB liability - ending (a)-(b)$59,290 $60,584 $64,356 $64,373 $58,119
Plan fiduciary net position as a percentage of the total OPEB liability 24.95%26.68%27.36%28.67%36.77%
Covered-employee payroll $26,539 $26,986 $27,662 $28,215 $26,824
Net OPEB liability as a percentage of covered-employee payroll 223.41% 224.50% 232.65% 228.15% 216.67%
* Fiscal year 2018 was the first year of implementation.
110 162
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022
SCHEDULE OF CONTRIBUTIONS
Retiree Healthcare OPEB Plan - Agent Multiple Employer
Last 10 fiscal years*
(Amounts in 000's)
Fiscal Year Ended June 30, 2018 2019 2020 2021 2022
Actuarially determined contribution $6,279 $6,839 $6,995 $7,253 $7,373
Contributions in relation to the
actuarially determined contribution 4,128 4,180 4,854 4,810 4,869
Contribution deficiency (excess) $2,151 $2,659 $2,141 $2,443 $2,504
Covered-employee payroll $26,986 $27,662 $28,215 $26,824 $25,079
Contributions as a percentage of
covered-employee payroll 15.30%15.11%17.20%17.93%19.41%
*Fiscal year 2018 was the first year of implementation.
Valuation Date •June 30, 2019
Contribution Policy • City contributes $802,000 per year into trust
Actuarial Cost Method •Entry Age Normal, Level Percentage of Payroll
Amortization Method •Level dollar
Amortization Period •Average of 21 years remaining for 2021/22
•6.75% at June 30, 2020
•6.75% at June 30, 2019
•Expected City contributions projected to keep sufficient plan assets to pay all
benefits from trust.
Inflation •2.75% per annum
Salary Increases •Aggregate - 3% annually
•Merit - CalPERS 1997-2015 Experience Study
Healthcare/Medical Trend •Non-Medicare - 7.00% for 2022, decreasing to an ultimate rate of 4.0% in
2076 and later years
•Medicare - 6.1% for 2022, decreasing to an ultimate rate of 4.0% in 2076 and
later yearsMortality, Retirement, Disability, Termination •CalPERS 1997-2015 Experience Study
Mortality Improvement •Mortality projected fully generational with Scale MP-2019
Healthcare participation for future retirees •100% if covered, 95% if waived
Retiree Healthcare OPEB Plan - Agent Multiple Employer
NOTES TO SCHEDULE OF EMPLOYER CONTRIBUTION
Methods and Assumptions for Actuarially Determined Contribution
Discount Rate and Long-Term Expected
Rate of Return on Assets
111 163
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164
SUPPLEMENTARY INFORMATION
165
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166
GENERAL FUND
The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund. The General Fund is comprised of
the following:
GENERAL PURPOSE FUND
This fund accounts for resources traditionally associated with government, such as administration, public
safety, library, parks maintenance, and recreation, outside of those accounted for in other funds.
MEASURE W FUND
This fund accounts for revenue as the result of the voter-approved one-half percent sales and use tax that
was passed on November 3, 2015. The tax went into effect April 1, 2016 and will last for 30 years until
March 31, 2046. Revenues are committed for maintenance and enhancement of local services.
115 167
General Purpose Measure W Total
ASSETS
Cash and investments $41,281,273 $8,780,342 $50,061,615
Receivables:
Accounts 15,224,674 3,078,388 18,303,062
Accrued interest 161,122 161,122
Leases 13,455,776 13,455,776
Due from other funds 1,270,000 1,270,000
Due from Conference Center 40,379 40,379
Inventory 4,099 4,099
Restricted cash and investments 152,797 152,797
Properties held for redevelopment 14,763,033 14,763,033
Total Assets $86,353,153 $11,858,730 $98,211,883
LIABILITIES
Accounts payable $4,582,555 $6,891 $4,589,446
Accrued salaries and benefits 1,766,827 1,766,827
Other payable 842,046 842,046
Deposits 1,159,644 1,159,644
Total Liabilities 8,351,072 6,891 8,357,963
DEFERRED INFLOWS OF RESOURCES
Related to leases 13,207,264 13,207,264
FUND BALANCES
Nonspendable 4,099 4,099
Restricted 14,763,033 14,763,033
Committed 4,244,813 11,839,164 16,083,977
Assigned 7,469,764 12,675 7,482,439
Unassigned 38,313,108 38,313,108
Total Fund Balances 64,794,817 11,851,839 76,646,656
Total Liabilities and Fund Balances $86,353,153 $11,858,730 $98,211,883
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING BALANCE SHEETS
JUNE 30, 2022
116 168
General Purpose Measure W Total
REVENUES
Property taxes $49,779,284 $49,779,284
Sales taxes 22,361,011 $15,399,766 37,760,777
Transient occupancy taxes 12,135,638 12,135,638
Franchise Fees 4,863,076 4,863,076
Other taxes 6,537,423 6,537,423
Intergovernmental 3,196,346 3,196,346
Interest and rentals 1,553,209 1,553,209
Licenses and permits 14,062,474 14,062,474
Charges for services 9,747,605 9,747,605
Fines and forfeitures 700,961 700,961
Other 515,004 515,004
Total Revenues 125,452,031 15,399,766 140,851,797
EXPENDITURES
Current:
City Council 252,677 252,677
City Clerk 887,678 887,678
City Treasurer 39,852 39,852
City Attorney 1,138,457 1,138,457
City Manager 3,911,694 279,786 4,191,480
Finance 3,148,914 3,148,914
Non-departmental 2,580,748 2,580,748
Human Resources 2,065,927 2,065,927
Fire 32,560,468 32,560,468
Police 33,281,487 33,281,487
Public Works 6,294,564 6,294,564
Parks and Recreation 18,092,526 18,092,526
Library 6,495,279 6,495,279
Economic and Community Development 11,006,922 11,006,922
Total Expenditures 121,757,193 279,786 122,036,979
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,694,838 15,119,980 18,814,818
OTHER FINANCING SOURCES (USES)
Gain from sale of property 1,507,641 1,507,641
Transfers in 4,763,729 4,763,729
Transfers out (10,033,749) (11,201,861) (21,235,610)
Total Other Financing Sources (Uses)(3,762,379) (11,201,861) (14,964,240)
Net Change in Fund Balances before special items (67,541) 3,918,119 3,850,578
SPECIAL ITEMS
Remittance of land sale proceeds (2,962,923)(2,962,923)
Net Change in Fund Balances (3,030,464)887,655
Fund balance - July 1 67,825,281 7,933,720 75,759,001
Fund balance - June 30 $64,794,817 $11,851,839 $76,646,656
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022
117 169
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $41,074,710 $41,074,710 $49,779,284 $8,704,574
Sales taxes 19,531,177 20,281,177 22,361,011 2,079,834
Transient occupancy taxes 7,085,194 8,585,194 12,135,638 3,550,444
Franchise fees 4,600,000 4,600,000 4,863,076 263,076
Other taxes 3,614,753 3,614,753 6,537,423 2,922,670
Intergovernmental 2,325,338 5,818,982 3,196,346 (2,622,636)
Interest and rentals 3,564,976 3,504,976 1,553,209 (1,951,767)
Licenses and permits 16,453,166 16,453,166 14,062,474 (2,390,692)
Charges for services 9,287,470 7,848,478 9,747,605 1,899,127
Fines and forfeitures 676,975 676,975 700,961 23,986
Other 232,718 394,382 515,004 120,622
Amounts available for appropriation 108,446,477 112,852,793 125,452,031 12,599,238
Charges to appropriations (outflows)
City Council 292,426 292,427 252,677 39,750
City Clerk 1,151,844 1,231,044 887,678 343,366
City Treasurer 160,245 160,244 39,852 120,392
City Attorney 910,049 910,049 1,138,457 (228,408)
City Manager 3,214,467 4,106,430 4,159,376 (52,946)
Finance 3,807,781 4,385,682 3,603,809 781,873
Non-departmental 1,294,252 1,369,252 2,581,079 (1,211,827)
Human Resources 2,042,597 2,307,004 2,184,942 122,062
Fire 29,508,065 29,892,151 32,975,264 (3,083,113)
Police 32,386,774 32,843,169 33,383,916 (540,747)
Public Works 5,978,429 6,396,059 6,743,595 (347,536)
Parks and Recreation 16,729,027 18,371,855 18,920,003 (548,148)
Library 6,221,935 6,897,585 6,495,735 401,850
Economic and Community Development 8,227,651 16,293,222 15,860,574 432,648
Total charges to appropriations 111,925,542 125,456,173 129,226,957 (3,770,784)
OTHER FINANCING SOURCES (USES)
Gain from sale of property 630,000 690,000 1,507,641 817,641
Transfers in 1,187,080 5,519,792 4,763,729 (756,063)
Transfers out (1,125,000) (13,098,660) (10,033,749) 3,064,911
Total Other Financing Sources (Uses) 692,080 (6,888,868) (3,762,379) 3,126,489
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS (2,786,985) (19,492,248) (7,537,305) 11,954,943
SPECIAL ITEMS
Remittance of land sale proceeds (2,962,923) (2,962,923)
Net Change in Fund Balances ($2,786,985) ($19,492,248)(10,500,228) $8,992,020
Fund Balance - July 1 67,825,281
Adjustment to budgetary basis:
Encumbrance adjustments 7,469,764
Fund Balance - June 30 $64,794,817
(Continued)
Budgeted Amounts
General Purpose
118 170
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes
Sales taxes $12,708,000 $12,708,000 $15,399,766 $2,691,766
Transient occupancy taxes
Franchise fees
Other taxes
Intergovernmental
Interest and rentals
Licenses and permits
Charges for services
Fines and forfeitures
Other
Amounts available for appropriation 12,708,000 12,708,000 15,399,766 2,691,766
Charges to appropriations (outflows)
City Council
City Clerk
City Treasurer
City Attorney
City Manager 393,090 405,765 292,461 113,304
Finance
Non-departmental
Human Resources
Fire
Police
Public Works
Parks and Recreation
Library
Economic and Community Development
Total charges to appropriations 393,090 405,765 292,461 113,304
OTHER FINANCING SOURCES (USES)
Gain from sale of property
Transfers in
Transfers out (8,646,783) (21,417,675) (11,201,861) 10,215,814
Total Other Financing Sources (Uses)(8,646,783) (21,417,675) (11,201,861) 10,215,814
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS 3,668,127 (9,115,440)3,905,444 13,020,884
SPECIAL ITEMS
Remittance of land sale proceeds
Net Change in Fund Balances $3,668,127 ($9,115,440)3,905,444 $13,020,884
Fund Balance - July 1 7,933,720
Adjustment to budgetary basis:
Encumbrance adjustments 12,675
Fund Balance - June 30 $11,851,839
(Continued)
Budgeted Amounts
Measure W
119 171
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $41,074,710 $41,074,710 $49,779,284 $8,704,574
Sales taxes 32,239,177 32,989,177 37,760,777 4,771,600
Transient occupancy taxes 7,085,194 8,585,194 12,135,638 3,550,444
Franchise fees 4,600,000 4,600,000 4,863,076 263,076
Other taxes 3,614,753 3,614,753 6,537,423 2,922,670
Intergovernmental 2,325,338 5,818,982 3,196,346 (2,622,636)
Interest and rentals 3,564,976 3,504,976 1,553,209 (1,951,767)
Licenses and permits 16,453,166 16,453,166 14,062,474 (2,390,692)
Charges for services 9,287,470 7,848,478 9,747,605 1,899,127
Fines and forfeitures 676,975 676,975 700,961 23,986
Other 232,718 394,382 515,004 120,622
Amounts available for appropriation 121,154,477 125,560,793 140,851,797 15,291,004
Charges to appropriations (outflows)
City Council 292,426 292,427 252,677 39,750
City Clerk 1,151,844 1,231,044 887,678 343,366
City Treasurer 160,245 160,244 39,852 120,392
City Attorney 910,049 910,049 1,138,457 (228,408)
City Manager 3,607,557 4,512,195 4,451,837 60,358
Finance 3,807,781 4,385,682 3,603,809 781,873
Non-departmental 1,294,252 1,369,252 2,581,079 (1,211,827)
Human Resources 2,042,597 2,307,004 2,184,942 122,062
Fire 29,508,065 29,892,151 32,975,264 (3,083,113)
Police 32,386,774 32,843,169 33,383,916 (540,747)
Public Works 5,978,429 6,396,059 6,743,595 (347,536)
Parks and Recreation 16,729,027 18,371,855 18,920,003 (548,148)
Library 6,221,935 6,897,585 6,495,735 401,850
Economic and Community Development 8,227,651 16,293,222 15,860,574 432,648
Total charges to appropriations 112,318,632 125,861,938 129,519,418 (3,657,480)
OTHER FINANCING SOURCES (USES)
Gain from sale of property 630,000 690,000 1,507,641 817,641
Transfers in 1,187,080 5,519,792 4,763,729 (756,063)
Transfers out (9,771,783) (34,516,335) (21,235,610) 13,280,725
Total Other Financing Sources (Uses)(7,954,703) (28,306,543) (14,964,240) 13,342,303
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS 881,142 (28,607,688) (3,631,861) 24,975,827
SPECIAL ITEMS
Remittance of land sale proceeds (2,962,923) (2,962,923)
Net Change in Fund Balances $881,142 ($28,607,688) (6,594,784) $22,012,904
Fund Balance - July 1 75,759,001
Adjustment to budgetary basis:
Encumbrance adjustments 7,482,439
Fund Balance - June 30 $76,646,656
Budgeted Amounts
Total
120 172
NON-MAJOR GOVERNMENTAL FUNDS
Special revenue funds are used to account for revenue sources that are restricted by law or administrative
action to expenditures for specified purposes. Special revenue funds used by the City of South San
Francisco include:
Gas Tax – Accounts for State monies received and expended for street improvements, repairs,
engineering, and administration under Streets and Highway Code Sections 2105, 2106, 2107, and
2107.5. Includes sales taxes on gasoline received from the State’s Traffic Congestion Relief Fund.
Developer Contributions – Accounts for fees deposited for planning and engineering reviews or
for future project development.
Community Development Block Grant – Accounts for Federal monies received to be expended
for development of jobs and suitable housing for low-income residents.
Maintenance Districts – Accounts for a portion of property tax dedicated to provide for the
maintenance of landscaped areas within housing developments.
Transportation Sales Tax – Accounts for the sales tax that provides resources for street
improvements and repairs.
Solid Waste Reduction – Accounts for revenues and expenditures associated with the waste
reduction, recycling, composting and household hazardous waste programs for residents and
businesses.
Supplemental Law Enforcement Services – Accounts for State monies provided for designated
Police department services.
City Programs – Organizations and individuals provide revenues that fund certain programs and
services.
Affordable Housing Trust – The inclusionary housing requirement in the City provides that 20%
of new residential housing units (for projects of 4 or more units) be affordable. These in-lieu fees
(in-lieu of production of affordable housing units by the developer) provide new residential
development’s share of affordable housing units.
PEG Equipment and Access – Accounts for the one percent of money set-aside from cable
franchise fees that are used to support public, educational and governmental (PEG) channels.
Transit Station Enhancement in-Lieu Fee – Accounts for revenues that are collected as a
negotiated community benefit.
Road Maintenance and Rehabilitation – Accounts for State monies received and expended for
road maintenance and rehabilitation pursuant to Senate Bill 1, approved in 2017.
San Mateo County (SMC) Measure W ½ Sales Tax – Accounts for the City’s portion of the
special half cent sales tax receipts restricted for congestion relief and transit improvements.
121 173
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Capital projects funds are used to account for resources used for the acquisition and construction of
capital facilities or major capital equipment, except for capital improvements financed by proprietary
funds. Capital projects funds used at the City of South San Francisco include:
Public Safety Impact Fee – These fees are to provide new development’s share of funding for
the replacement of public safety capital equipment, vehicles and facilities.
Oyster Point Improvements Impact Fees – These fees provide new development’s share of
funding for the Oyster Point at Highway 101 interchange improvements.
Sewer Capacity Charges – Accounts for cost recovery charged to new development based on
proportional benefit, associated with providing sewer collection and treatment capacity to new
development, both through existing infrastructure provided, and through future capital projects
not funded by other sources.
Oyster Point Development Impact Fees – Accounts for expenditures associated with the
acquisition, construction, or improvement related to Oyster Point Development.
Park Land Acquisition Fee – Accounts for monies received and expended pursuant to SSFMC
Chapter 8.67 and Mitigation Fee Act for park land acquisition.
Park Construction Fee – Accounts for monies received and expended pursuant to SSFMC
Chapter 8.67 and Mitigation Fee Act for park construction.
Bicycle and Pedestrian Impact Fee – Accounts for monies received and expended pursuant to
SSFMC Chapter 8.68 for mitigation of impacts of new development on bicycle and pedestrian
improvements in the City.
Commercial Linkage Impact Fee – Accounts for affordable housing funding created by new
commercial development.
Library Impact Fee – Accounts for citywide fees to provide new development’s share of the
expansion, rehabilitation and replacement of library facilities and collections to accommodate the
increased demand for library services caused by future development
Debt service funds are used to account for resources used for the payment of debt service on long-term
debt. Debt service funds used at the City of South San Francisco include:
Debt Service – Accounts for expenditures associated with the acquisition, construction, and
installation of certain capital improvements constituting the new City police station located within
the City’s new Civic Center Campus, and related improvements, facilities and equipment, and
pay the costs incurred in connection with the issuance of the Series 2020A Bonds, as well as
capital improvements constituting the City’s new Civic Center Campus, and related
improvements, facilities and equipment, and pay the costs incurred in connection with the
issuance of the Series 2021A Bonds.
122 174
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175
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2022
SPECIAL REVENUE FUNDS
Community
Developer Development Maintenance Transportation
Gas Tax Contributions Block Grant Districts Sales Tax
ASSETS
Cash and investments $163,649 $11,435,046 $4,824,117 $3,680,937
Receivables:
Accounts 123,159 453,481 $249,130 55,850 22,727
Accrued interest 1,099 29,183 10,014
Loans 677,858
Restricted cash and investments 2,091
Total Assets $287,907 $11,917,710 $929,079 $4,879,967 $3,713,678
LIABILITIES
Liabilities:
Accounts payable $161,397 $30,630 $20,261
Other payable 524,787
Deposits 4,188,966
Unearned revenue
Due to other funds 210,000
Total Liabilities 4,350,363 765,417 20,261
Fund Balances:
Restricted $287,907 7,567,347 163,662 4,859,706 $3,713,678
Total Fund Balances 287,907 7,567,347 163,662 4,859,706 3,713,678
Total Liabilities and Fund Balances $287,907 $11,917,710 $929,079 $4,879,967 $3,713,678
124 176
SPECIAL REVENUE FUNDS
Road
Solid Supplemental Affordable PEG Transit Station Maintenance
Waste Law Enforce- City Housing Equipment and Enhancement and
Reduction ment Services Programs Trust Access In-Lieu Fee Rehabilitation
$774,021 $965 $11,008,982 $872,019 $1,690,372 $2,490,013 $1,898,482
34,871 332 39,335 119,856
134 35,175 2,815 5,115 6,079 4,677
15,106
$808,892 $1,099 $11,044,157 $890,272 $1,734,822 $2,496,092 $2,023,015
$2,104 $135,585 $43,539
11,010
217,980
2,104 135,585 272,529
806,788 $1,099 10,908,572 617,743 $1,734,822 $2,496,092 $2,023,015
806,788 1,099 10,908,572 617,743 1,734,822 2,496,092 2,023,015
$808,892 $1,099 $11,044,157 $890,272 $1,734,822 $2,496,092 $2,023,015
(Continued)
125 177
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2022
SPECIAL
REVENUE
FUND CAPITAL PROJECTS FUNDS
SMC Measure W Public Oyster Point Sewer Oyster Point
1/2 Cent Safety Improvement Capacity Development
Sales Tax Impact Fee Impact Fees Charges Impact Fees
ASSETS
Cash and investments $1,278,810 $2,546,153 $29,149 $10,382,735 $38,906
Receivables:
Accounts 83,097 98,053
Accrued interest 2,770 5,456 687 25,929
Loans
Restricted cash and investments
Total Assets $1,364,677 $2,551,609 $29,836 $10,408,664 $136,959
LIABILITIES
Liabilities:
Accounts payable $37,072 $143,943
Other payable
Deposits
Unearned revenue
Due to other funds
Total Liabilities 37,072 143,943
Fund Balances:
Restricted $1,364,677 2,514,537 $29,836 $10,408,664 (6,984)
Total Fund Balances 1,364,677 2,514,537 29,836 10,408,664 (6,984)
Total Liabilities and Fund Balances $1,364,677 $2,551,609 $29,836 $10,408,664 $136,959
126 178
DEBT SERVICE
CAPITAL PROJECTS FUNDS FUND
Total
Park Land Park Bicycle and Commercial Nonmajor
Acquisition Construction Pedestrian Linkage Library Debt Governmental
Fee Fee Impact Fee Impact Fee Impact Fee Service Funds
$3,223,001 $8,895,473 $185,475 $6,923,491 $673 $72,342,469
1,279,891
7,071 19,439 428 30,107 1 186,179
2,000,000 2,692,964
2,091
$3,230,072 $8,914,912 $185,903 $8,953,598 $674 $76,503,594
$39,500 $614,031
535,797
4,188,966
217,980
210,000
39,500 5,766,774
$3,230,072 $8,914,912 $185,903 8,914,098 $674 70,736,820
3,230,072 8,914,912 185,903 8,914,098 674 70,736,820
$3,230,072 $8,914,912 $185,903 $8,953,598 $674 $76,503,594
127 179
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022
SPECIAL REVENUE FUNDS
Community
Developer Development Maintenance Transportation
Gas Tax Contributions Block Grant Districts Sales Tax
REVENUES
Property taxes $2,220,652
Sales taxes
Other taxes $2,122,941
Intergovernmental $1,716,706 $664,707
Interest and rentals (12,714) ($332,865) 15,258 (114,917)
Charges for services 2,613,506 203,639
Other 37,299
Total Revenues 1,703,992 2,317,940 883,604 2,220,652 2,008,024
EXPENDITURES
Current:
Fire
Police
Public works
Parks and recreation 2,203,316
Economic and community development 529,538 828,328
Other
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 529,538 828,328 2,203,316
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,703,992 1,788,402 55,276 17,336 2,008,024
OTHER FINANCING SOURCES (USES)
Transfers in 8,496 25,968 2,362
Transfers out (1,746,357) (674,452)(821,307)
Total Other Financing Sources (Uses)(1,746,357) (665,956)25,968 (818,945)
Net Change in Fund Balances (42,365) 1,122,446 55,276 43,304 1,189,079
Fund balance - July 1 330,272 6,444,901 108,386 4,816,402 2,524,599
Fund balance - June 30 $287,907 $7,567,347 $163,662 $4,859,706 $3,713,678
128 180
SPECIAL REVENUE FUNDS
Road
Solid Supplemental Affordable PEG Transit Station Maintenance
Waste Law Enforce- City Housing Equipment and Enhancement and
Reduction ment Services Programs Trust Access In-Lieu Fee Rehabilitation
$166,041
$1,343,632
(1,505) ($358,098) ($31,346) ($58,804) ($70,109) (53,544)
$209,224 1,041,789
362,502 5,450 157,275 1,253,473
209,224 164,536 1,046,193 (25,896)98,471 1,183,364 1,290,088
64,536
75,656
1,049,683 185,386
75,656 64,536 1,049,683 185,386
133,568 100,000 (3,490) (211,282)98,471 1,183,364 1,290,088
(28,541) (100,000) (489,105)(464,237) (296,282)
(28,541) (100,000) (489,105)(464,237) (296,282)
105,027 (492,595) (211,282)98,471 719,127 993,806
701,761 1,099 11,401,167 829,025 1,636,351 1,776,965 1,029,209
$806,788 $1,099 $10,908,572 $617,743 $1,734,822 $2,496,092 $2,023,015
(Continued)
129 181
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022
SPECIAL
REVENUE
FUND CAPITAL PROJECTS FUNDS
SMC Measure W Public Oyster Point Sewer Oyster Point
1/2 Cent Safety Improvement Capacity Development
Sales Tax Impact Fee Impact Fees Charges Impact Fees
REVENUES
Property taxes
Sales taxes $825,500
Other taxes
Intergovernmental $13,302,803
Interest and rentals (31,622) ($62,973) ($8,080) ($298,394)
Charges for services 1,744,396 1,444,207 3,130,802 696,031
Other
Total Revenues 793,878 1,681,423 1,436,127 2,832,408 13,998,834
EXPENDITURES
Current:
Fire 37,072
Police
Public works 2,800 14,058,921
Parks and recreation
Economic and community development
Other
Debt service:
Principal repayments 1,445,000
Interest and fiscal charges
Total Expenditures 37,072 1,445,000 2,800 14,058,921
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 793,878 1,644,351 (8,873) 2,829,608 (60,087)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (43,462) (629,200) (147,072)
Total Other Financing Sources (Uses) (43,462) (629,200) (147,072)
Net Change in Fund Balances 750,416 1,015,151 (8,873) 2,682,536 (60,087)
Fund balance - July 1 614,261 1,499,386 38,709 7,726,128 53,103
Fund balance - June 30 $1,364,677 $2,514,537 $29,836 $10,408,664 ($6,984)
130 182
DEBT SERVICE
CAPITAL PROJECTS FUNDS FUND
Total
Park Land Park Bicycle and Commercial Nonmajor
Acquisition Construction Pedestrian Linkage Library Debt Governmental
Fee Fee Impact Fee Impact Fee Impact Fee Service Funds
$2,220,652
825,500
2,288,982
17,027,848
($79,929) ($223,229) ($4,891) ($347,603) ($19) (2,075,384)
1,707,708 3,963,057 73,981 3,425,285 693 20,254,318
1,815,999
1,627,779 3,739,828 69,090 3,077,682 674 42,357,915
37,072
64,536
14,137,377
2,203,316
1,357,866
4,375,209 5,610,278
$3,190,000 4,635,000
5,097,833 5,097,833
4,375,209 8,287,833 33,143,278
1,627,779 3,739,828 69,090 (1,297,527) 674 (8,287,833) 9,214,637
8,287,833 8,324,659
(1,480) (169,698)(5,611,193)
(1,480) (169,698) 8,287,833 2,713,466
1,626,299 3,570,130 69,090 (1,297,527) 674 11,928,103
1,603,773 5,344,782 116,813 10,211,625 58,808,717
$3,230,072 $8,914,912 $185,903 $8,914,098 $674 $70,736,820
131 183
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
GAS TAX
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Other taxes
Intergovernmental $1,886,008 $1,716,706 ($169,302) $610,685 $664,707 $54,022
Interest and rentals 15,000 (12,714) (27,714) 72,569 15,258 (57,311)
Charges for services 203,639 203,639
Other
Total Revenues 1,901,008 1,703,992 (197,016) 683,254 883,604 200,350
EXPENDITURES
Current:
Police
Public works
Parks and recreation
Economic and community development 856,551 1,072,940 (216,389)
Other
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 856,551 1,072,940 (216,389)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,901,008 1,703,992 (197,016) (173,297) (189,336) (16,039)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (2,421,465) (1,746,357) 675,108
Total Other Financing Sources (Uses) (2,421,465) (1,746,357) 675,108
NET CHANGE IN FUND BALANCES ($520,457) (42,365) $478,092 ($173,297) (189,336) ($16,039)
Adjustment to budgetary basis:
Encumbrance adjustments 244,612
Fund balance - July 1 330,272 108,386
Fund balance - June 30 $287,907 $163,662
BLOCK GRANT
COMMUNITY DEVELOPMENT
132 184
MAINTENANCE DISTRICTS SOLID WASTE REDUCTION
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$1,903,851 $2,220,652 $316,801
$1,527,755 $2,122,941 $595,186
25,000 (114,917) (139,917)
$180,000 $209,224 $29,224
1,903,851 2,220,652 316,801 1,552,755 2,008,024 455,269 180,000 209,224 29,224
26,754 (26,754)214,843 75,656 139,187
2,219,453 2,203,316 16,137
126,753 (126,753)
2,219,453 2,230,070 (10,617)214,843 202,409 12,434
(315,602) (9,418) 306,184 1,552,755 2,008,024 455,269 (34,843) 6,815 41,658
25,968 25,968 2,362 2,362
(1,882,795) (821,307) 1,061,488 (106,627) (28,541) 78,086
25,968 25,968 (1,882,795) (818,945) 1,063,850 (106,627) (28,541) 78,086
($289,634) 16,550 $306,184 ($330,040) 1,189,079 $1,519,119 ($141,470) (21,726) $119,744
26,754 126,753
4,816,402 2,524,599 701,761
$4,859,706 $3,713,678 $806,788
(Continued)
TRANSPORTATION SALES TAX
133 185
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Other taxes $100,000 $166,041 $66,041
Intergovernmental
Interest and rentals (1,505) (1,505)($358,098) ($358,098)
Charges for services 1,041,789 $1,041,789
Other 362,502 362,502
Total Revenues 100,000 164,536 64,536 1,046,193 1,046,193
EXPENDITURES
Current:
Police 64,536 (64,536)
Public works
Parks and recreation
Economic and community development
Other 1,049,683 (1,049,683)
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 64,536 (64,536)1,049,683 (1,049,683)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 100,000 100,000 (3,490) (3,490)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (100,000) (100,000)($1,934,611) (489,105) 1,445,506
Total Other Financing Sources (Uses) (100,000) (100,000)(1,934,611) (489,105) 1,445,506
NET CHANGE IN FUND BALANCES ($1,934,611) (492,595) $1,442,016
Adjustment to budgetary basis:
Encumbrance adjustments
Fund balance - July 1 1,099 11,401,167
Fund balance - June 30 $1,099 $10,908,572
CITY PROGRAMSENFORCEMENT SERVICES
SUPPLEMENTAL LAW
134 186
PEG
AFFORDABLE HOUSING TRUST EQUIPMENT AND ACCESS
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$217,980 (217,980)$1,300,000 $1,343,632 $43,632
($31,346) ($31,346) $5,000 ($58,804) ($63,804)(53,544) (53,544)
5,450 5,450 125,000 157,275 32,275
217,980 (25,896) (243,876) 130,000 98,471 (31,529) 1,300,000 1,290,088 (9,912)
374,227 280,336 93,891
374,227 280,336 93,891
(156,247) (306,232) (149,985) 130,000 98,471 (31,529) 1,300,000 1,290,088 (9,912)
(2,477,055) (296,282) 2,180,773
(2,477,055) (296,282) 2,180,773
($156,247) (306,232) ($149,985) $130,000 98,471 ($31,529) ($1,177,055) 993,806 $2,170,861
94,950
829,025 1,636,351 1,029,209
$617,743 $1,734,822 $2,023,015
(Continued)
ROAD MAINTENANCE
AND REHABILITATION
135 187
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes $600,000 $825,500 $225,500
Other taxes
Intergovernmental
Interest and rentals (31,622) (31,622)
Charges for services
Other
Total Revenues 600,000 793,878 193,878
EXPENDITURES
Current:
Police
Public works
Parks and recreation
Economic and community development
Other
Debt service:
Principal repayments $3,190,000 $3,190,000
Interest and fiscal charges 5,097,833 5,097,833
Total Expenditures 8,287,833 8,287,833
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 600,000 793,878 193,878 (8,287,833) (8,287,833)
OTHER FINANCING SOURCES (USES)
Transfers in 8,287,833 8,287,833
Transfers out (641,753) (43,462) 598,291
Total Other Financing Sources (Uses) (641,753) (43,462) 598,291 8,287,833 8,287,833
NET CHANGE IN FUND BALANCES ($41,753) 750,416 $792,169
Adjustment to budgetary basis:
Encumbrance adjustments
Fund balance - July 1 614,261
Fund balance - June 30 $1,364,677
DEBT SERVICE FUND
SMC MEASURE W
1/2 CENT SALES TAX
136 188
INTERNAL SERVICE FUNDS
Internal service funds account for department services and financing performed for other departments
within the same governmental jurisdiction. Funding comes from charges assessed to the departments
benefiting from the service. Internal service funds used at the City include:
City Service – Accounts for vehicle maintenance and information technology services provided
to City departments.
Self Insurance – Accounts for workers' compensation, general liability and property damage
claim activity and financing is represented in this fund.
Health and Retirement Benefits – Accounts for health and retirement benefits paid on the
behalf of eligible City employees.
Equipment Replacement – Accounts for resources set-aside for the future replacement of City
vehicles and equipment.
137 189
CITY OF SOUTH SAN FRANCISCO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2022
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
ASSETS
Current assets:
Cash and investments $2,901,666 $18,410,189 $10,357,318 $6,728,360 $38,397,533
Receivables:
Accounts
Accrued interest 9,122 52,307 24,769 18,894 105,092
Deposit 216,000 93,790 309,790
Prepaid items 1,204,373 1,204,373
Total current assets 2,910,788 18,678,496 11,680,250 6,747,254 40,016,788
Noncurrent assets:
Capital assets:
Depreciable, net of accumulated depreciation 4,402,557 4,402,557
Total non-current assets 4,402,557 4,402,557
Total Assets 2,910,788 18,678,496 11,680,250 11,149,811 44,419,345
LIABILITIES
Current liabilities:
Accounts payable 125,149 29,571 206,804 68,035 429,559
Other payable 32 32
Current portion of accrued insurance loss 3,047,258 3,047,258
Current portion of compensated absences 64,204 1,156,941 1,221,145
Current portion of long-term debt 144,637 144,637
Total current liabilities 189,353 3,076,829 1,363,745 212,704 4,842,631
Noncurrent liabilities:
Accrued insurance loss 13,436,000 13,436,000
Compensated absences obligation 160,866 567,128 727,994
Total noncurrent liabilities 160,866 13,436,000 567,128 14,163,994
Total Liabilities 350,219 16,512,829 1,930,873 212,704 19,006,625
NET POSITION:
Net investment in capital assets 4,257,919 4,257,919
Unrestricted 2,560,569 2,165,667 9,749,377 6,679,188 21,154,801
Total Net Position $2,560,569 $2,165,667 $9,749,377 $10,937,107 $25,412,720
138 190
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
OPERATING REVENUES
Charges for services $5,387,183 $6,420,013 $15,359,131 $1,370,243 $28,536,570
Total Operating Revenues 5,387,183 6,420,013 15,359,131 1,370,243 28,536,570
OPERATING EXPENSES
Personnel expenses 2,199,493 876,699 15,118,036 18,194,228
Professional services 469,266 98,461 567,727
Program supplies 1,707,775 1,125 328,446 2,037,346
Insurance 12,988 2,610,838 2,623,826
Self-insurance and claims 2,248,076 2,248,076
Repair and maintenance 657,991 198,626 856,617
Utilities 176,937 176,937
Depreciation 967,562 967,562
Other 14,972 541,005 555,977
Total Operating Expenses 5,239,422 5,834,074 15,660,166 1,494,634 28,228,296
Operating Income (Loss)147,761 585,939 (301,035) (124,391) 308,274
NONOPERATING
REVENUES (EXPENSES)
Interest income (104,605) (600,713) (287,019) (217,390) (1,209,727)
Interest expense (6,614)(6,614)
Gain from disposal of capital assets 10,418 10,418
Other 335,290 335,290
Total Nonoperating
Revenues (Expenses)(104,605) (265,423) (287,019) (213,586) (870,633)
Net income (loss) before transfers 43,156 320,516 (588,054) (337,977) (562,359)
TRANSFERS
Transfers in 49,440 250,000 832,865 1,132,305
Change in Net Position 92,596 320,516 (338,054)494,888 569,946
Net Position - July 1 2,467,973 1,845,151 10,087,431 10,442,219 24,842,774
Net Position - June 30 $2,560,569 $2,165,667 $9,749,377 $10,937,107 $25,412,720
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
CITY OF SOUTH SAN FRANCISCO
139 191
CITY OF SOUTH SAN FRANCISCO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2022
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from interfund service provided $5,418,210 $6,755,303 $15,359,131 $1,370,243 $28,902,887
Cash payments to suppliers for goods and services (3,039,929) (2,709,299)(509,095) (6,258,323)
Cash payments to employees for services (2,184,197) (954,835) (16,902,464)(20,041,496)
Cash payments for judgments and claims (1,514,615)(1,514,615)
Net Cash Provided by Operating Activities 194,084 1,576,554 (1,543,333) 861,148 1,088,453
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 49,440 250,000 832,865 1,132,305
Net Cash Provided by Noncapital Financing Activities 49,440 250,000 832,865 1,132,305
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal paid on capital lease (140,892) (140,892)
Interest payments (6,614)(6,614)
Acquisition of capital assets, net (424,683) (424,683)
Proceeds from the sale of capital assets 17,719 17,719
Net Cash Used in Capital and Related Financing Activities (554,470) (554,470)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received (paid)(237,931) (1,361,148) (634,023) (493,331) (2,726,433)
Changes in fair values of investments 131,457 753,848 356,973 272,316 1,514,594
Net Cash Provided by Investing Activities (106,474) (607,300) (277,050) (221,015) (1,211,839)
Net Increase (Decrease) in cash and cash equivalents 137,050 969,254 (1,570,383) 918,528 454,449
Cash and cash equivalents, beginning 2,764,616 17,440,935 11,927,701 5,809,832 37,943,084
Cash and cash equivalents, ending $2,901,666 $18,410,189 $10,357,318 $6,728,360 $38,397,533
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)$147,761 $585,939 ($301,035) ($124,391) $308,274
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation 967,562 967,562
Other non-operating revenue (expenses)335,290 335,290
Net change in assets and liabilities:
Accounts and lease receivables 31,027 31,027
Deposit
Prepaid items (1,204,373)(1,204,373)
Accounts payable (172) (78,136) 84,551 17,948 24,191
Other payable 29 29
Accrued insurance losses 733,461 733,461
Compensated absence obligations 15,468 (122,476)(107,008)
Net Cash Provided by (Used in) Operating Activities $194,084 $1,576,554 ($1,543,333) $861,148 $1,088,453
NONCASH TRANSACTIONS
Retirement of capital assets ($7,301) ($7,301)
140 192
CUSTODIAL FUNDS
Custodial Funds report resources, not in a trust, that are held by the City for other parties outside of the
City’s reporting entity.
SSF Employee Deferred Comp Trust Oversight – This fund is used to pay for the
administrative costs of monitoring the Deferred Compensation Funds on behalf of City
employees. The City does not make any contributions to the fund.
Oyster Point CFD – Accounts for Community Facilities District No. 2021-01 special assessment
collections and debt service payments.
141 193
CITY OF SOUTH SAN FRANCISCO
CUSTODIAL FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2022
SSF Employee
Deferred Comp
Trust Oyster Point
Oversight CFD TOTAL
ASSETS
Cash and investments $139,655 $139,655
Interest receivable 396 396
Restricted cash and investments $20,221,759 20,221,759
Total Assets 140,051 20,221,759 20,361,810
LIABILITIES
Accounts payable 2,500 2,500
Total Liabilities 2,500 2,500
NET POSITION
Restricted for others 137,551 137,551
Restricted for bondholders 20,221,759 20,221,759
Total Net Position $137,551 $20,221,759 $20,359,310
142 194
CITY OF SOUTH SAN FRANCISCO
CUSTODIAL FUNDS
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
SSF Employee
Deferred Comp
Trust Oyster Point
Oversight CFD TOTAL
ADDITIONS
Plan contributions $32,041 $32,041
Contribution from property owners $20,764,872 20,764,872
Interest and rentals (4,559) 11,452 6,893
Total Additions 27,482 20,776,324 20,803,806
DEDUCTIONS
Professional services 20,100 20,100
Payments to bondholders 554,565 554,565
Total Deductions 20,100 554,565 574,665
Change in net position 7,382 20,221,759 20,229,141
NET POSITION
Beginning of the year 130,169 130,169
End of the year $137,551 $20,221,759 $20,359,310
143 195
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196
STATISTICAL SECTION
This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City’s overall financial health. In contrast to the financial
section, the statistical section information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial
performance and well-being have changed over time:
1.Net Position by Component
2.Changes in Net Position
3.Fund Balances of Governmental Funds
4.Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue
source, the property tax:
1.Assessed Value and Estimated Market Value of Taxable Property
2.All Overlapping Property Tax Rates
3.Principal Property Tax Payers
4.Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels
of outstanding debt and the City’s ability to issue additional debt in the future:
1.Ratio of Outstanding Debt by Type
2.Computation of Direct and Overlapping Debt
3.Computation of Legal Bonded Debt Margin
4.Continuing Disclosure Requirements:
a.Revenue Bond Coverage
b.Sewer Debt Service Coverage
c.Bonded Debt Pledge Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City’s financial activities take place:
1.Demographic and Economic Statistics
2.Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information
in the City’s financial report relates to the services the City provides and the activities it performs:
1.Full-Time City Government Employees by Function
2.Operating Indicators by Function/Program
3.Capital Asset Statistics by Function/Program
145 197
STATISTICAL SECTION - (Continued)
Miscellaneous Information
1.Collection and Use of 1% Special Transient Occupancy Tax
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive
Financial Reports for the relevant year.
146 198
2013 2014 2015 2016 2017
Governmental activities
Net investment in capital assets $216,508,668 $230,440,390 $230,517,037 $231,142,079 $254,344,554
Restricted 30,514,986 42,367,623 49,311,828 52,406,602 54,478,093
Unrestricted 8,021,490 (12,317,511) (134,389,522) (120,119,617) (86,808,434)
Total governmental activities net position $255,045,144 $260,490,502 $145,439,343 $163,429,064 $222,014,213
Business-type activities
Net investment in capital assets $72,217,660 $78,045,318 $78,598,277 $83,930,073 $86,167,704
Restricted
Unrestricted 13,353,988 15,367,085 4,196,654 6,243,225 7,199,925
Total business-type activities net position $85,571,648 $93,412,403 $82,794,931 $90,173,298 $93,367,629
Primary government
Net investment in capital assets $288,726,328 $308,485,708 $309,115,314 $315,072,152 $340,512,258
Restricted 30,514,986 42,367,623 49,311,828 52,406,602 54,478,093
Unrestricted 21,375,478 3,049,574 (130,192,868) (113,876,392) (79,608,509)
Total primary government net position $340,616,792 $353,902,905 $228,234,274 $253,602,362 $315,381,842
2018 2019 2020 2021 2022
Governmental activities
Net investment in capital assets $254,570,044 $271,349,364 $296,243,640 $316,169,957 $452,722,446
Restricted 96,316,988 117,752,590 138,701,991 160,119,056 139,059,768
Unrestricted (129,833,581) (114,028,420) (130,288,161) (144,181,245) (194,945,964)
Total governmental activities net position $221,053,451 $275,073,534 $304,657,470 $332,107,768 $396,836,250
Business-type activities
Net investment in capital assets $90,097,907 $100,463,280 $111,968,328 $123,628,942 $133,598,554
Restricted
Unrestricted 3,227,395 44,966 2,040,842 7,208,752 4,271,663
Total business-type activities net position $93,325,302 $100,508,246 $114,009,170 $130,837,694 $137,870,217
Primary government
Net investment in capital assets $344,667,951 $371,812,644 $408,211,968 $439,798,899 $586,321,000
Restricted 96,316,988 117,752,590 138,701,991 160,119,056 139,059,768
Unrestricted (126,606,186) (113,983,454) (128,247,319) (136,972,493) (190,674,301)
Total primary government net position $314,378,753 $375,581,780 $418,666,640 $462,945,462 $534,706,467
Source: City of South San Francisco, Department of Finance
(a) The City adjusted certain beginning balances during fiscal years 2014-15 and 2017-18 due to the implementation of GASB
Statements 68 and 75. Financial data shown for the proceeding year were not adjusted for the presentation.
CITY OF SOUTH SAN FRANCISCO
(accrual basis of accounting)
Last Ten Fiscal Years (a)
Net Position by Component
($200)
($100)
$0
$100
$200
$300
$400
$500
$600
$700
$800
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Unrestricted
Restricted
Invested in Capital Assets Net of
Related Debt
147 199
CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2013 2014 2015 2016
Expenses
Governmental Activities:
General Government $8,360,945 $7,155,035 $8,421,857 $9,044,518
Fire Department 22,746,291 21,200,903 22,005,883 22,488,964
Police Department 24,756,958 24,376,379 23,910,436 23,158,168
Public Works 15,773,710 14,980,417 14,493,039 11,916,572
Park, Recreation and Maintenance Services 12,570,236 12,658,309 12,383,880 12,901,657
Library 4,615,967 4,310,550 4,300,885 4,442,577
Economic and Community Development 16,126,427 5,525,541 5,928,316 7,603,275
Interest on Long -Term Debt 52,139
Total Governmental Activities Expenses 105,002,673 90,207,134 91,444,296 91,555,731
Business-Type Activities:
Sewer Rental 20,870,522 19,301,103 23,969,579 18,273,580
Parking District 792,609 943,859 503,014 894,769
Storm Water 1,655,950 1,078,868 1,234,616 1,289,465
Total Business-Type Activities Expenses 23,319,081 21,323,830 25,707,209 20,457,814
Total Primary Government Expenses $128,321,754 $111,530,964 $117,151,505 $112,013,545
Program Revenues
Governmental Activities:
Charges for Services:
General Government $1,951,016 $5,785,598 $3,946,302 $4,194,563
Fire Department 2,987,956 3,304,952 3,520,275 3,450,524
Police Department 2,640,146 2,805,640 2,370,736 2,076,837
Public Works 2,926,227 4,734,813 5,071,729 10,361,525
Park, Recreation and Maintenance Services 3,433,567 3,571,947 3,708,272 3,744,137
Library 125,416 138,827 120,850 164,271
Economic and Community Development 3,457,020 5,800,849 5,337,177 6,131,463
Operating Grants and Contributions 5,455,010 5,601,916 5,753,845 5,581,492
Capital Grants and Contributions 4,036,786 1,538,225 632,735 1,147,337
Total Government Activities Program Revenues 27,013,144 33,282,767 30,461,921 36,852,149
Business-Type Activities:
Charges for Services:
Sewer Rental 19,338,107 19,155,467 19,798,033 19,569,341
Parking District 732,932 785,586 819,051 843,199
Storm Water 427,291 409,458 407,640 412,105
Operating Grants and Contributions 6,137,401 7,619,601 6,242,687 5,802,788
Capital Grants and Contributions
Total Business-Type Activities Program Revenue 26,635,731 27,970,112 27,267,411 26,627,433
Total Primary Government Program Revenues $53,648,875 $61,252,879 $57,729,332 $63,479,582
Net (Expense)/Revenue
Governmental Activities ($77,989,529) ($56,924,367) ($60,982,375) ($54,703,582)
Business-Type Activities 3,316,650 6,646,282 1,560,202 6,169,619
Total Primary Government Net Expense ($74,672,879) ($50,278,085) ($59,422,173) ($48,533,963)
148 200
2017 2018 2019 2020 2021 2022
$10,253,403 $12,506,188 $12,139,671 $15,378,452 $19,611,586 $20,793,108
25,750,126 30,352,387 31,986,738 34,442,874 34,492,838 28,530,628
25,838,242 30,732,288 32,994,122 36,095,698 33,376,962 35,635,007
12,396,998 18,379,278 20,425,958 17,737,243 7,567,745 7,544,142
15,217,677 17,162,377 17,962,298 19,620,848 17,159,696 19,482,582
5,184,282 5,910,406 6,241,093 6,728,102 6,274,811 6,060,920
8,927,162 10,094,626 10,557,116 9,837,938 11,728,168 12,034,671
512,376 2,200,344 4,686,930
103,567,890 125,137,550 132,306,996 140,353,531 132,412,150 134,767,988
22,661,768 24,397,607 25,719,049 26,213,885 26,644,459 26,246,647
940,181 1,202,319 896,994 1,116,840 1,338,092 1,170,305
1,333,409 1,026,948 1,188,182 1,206,694 922,057 1,309,360
24,935,358 26,626,874 27,804,225 28,537,419 28,904,608 28,726,312
$128,503,248 $151,764,424 $160,111,221 $168,890,950 $161,316,758 $163,494,300
$2,225,049 $1,966,755 $7,930,983 $5,217,199 $6,968,307 $5,413,298
4,242,940 6,327,921 6,052,804 6,073,247 5,952,872 7,857,602
2,146,909 2,230,824 2,351,491 2,092,791 1,642,726 2,878,353
10,869,608 24,727,897 27,811,701 23,355,636 24,859,635 17,734,041
3,756,369 4,489,665 4,293,474 2,872,786 1,165,630 3,058,826
96,987 102,124 105,466 97,603 19,037 1,054,339
3,911,597 13,052,441 14,214,991 9,067,781 4,275,808 28,676,546
4,533,539 5,827,149 12,091,079 8,757,554 8,021,958 10,852,746
577,995 2,515,868 1,629,730 4,930,640 5,498,698 3,342,651
32,360,993 61,240,644 76,481,719 62,465,237 58,404,671 80,868,402
19,897,769 22,417,156 24,078,076 24,296,811 24,705,044 22,778,206
916,687 1,084,472 1,180,538 1,003,222 764,514 993,986
418,840 656,315 540,679 412,707 410,745 412,842
5,763,645 5,834,455 6,452,950 7,440,041 14,815,460 5,663,695
5,252,622
26,996,941 29,992,398 32,252,243 33,152,781 40,695,763 35,101,351
$59,357,934 $91,233,042 $108,733,962 $95,618,018 $99,100,434 $115,969,753
($71,206,897) ($63,896,906) ($55,825,277) ($77,888,294) ($74,007,479) ($53,899,586)
2,061,583 3,365,524 4,448,018 4,615,362 11,791,155 6,375,039
($69,145,314) ($60,531,382) ($51,377,259) ($73,272,932) ($62,216,324) ($47,524,547)
149 201
2013 2014 2015 2016
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property Taxes $26,420,861 $22,890,828 $24,650,648 $26,438,620
Sales Taxes 12,931,805 12,725,141 13,932,125 15,188,686
Transient Occupancy Tax 9,659,281 11,174,017 12,947,473 13,393,437
Franchise fees 3,982,092
Other Taxes 7,588,471 8,141,010 8,650,056 5,124,574
Motor Vehicle In-Lieu 33,767 40,074 26,995 26,708
Property taxes in lieu of vehicle license fees 4,955,873 5,319,154 5,551,651 5,770,060
Interest Earnings 809,721 1,108,177 629,036 1,354,266
Gain from sale of property
Other 1,965,744 2,012,444 4,577,239 2,334,407
Extraordinary Item
Transfers (906,857) (1,041,120) (1,429,308) (919,547)
Special items 11,873,226
Total Government Activities 75,331,892 62,369,725 69,535,915 72,693,303
Business-Type Activities:
Interest Earnings 95,177 153,353 126,874 289,201
Transfers 906,857 1,041,120 1,429,308 919,547
Total Business-Type Activities 1,002,034 1,194,473 1,556,182 1,208,748
Total Primary Government $76,333,926 $63,564,198 $71,092,097 $73,902,051
Change in Net Position
Governmental Activities ($2,657,637) $5,445,358 $8,553,540 $17,989,721
Business-Type Activities 4,318,684 7,840,755 3,116,384 7,378,367
Total Primary Government $1,661,047 $13,286,113 $11,669,924 $25,368,088
CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
Last Ten Fiscal Years
(continued)
(Accrual Basis of Accounting)
150 202
2017 2018 2019 2020 2021 2022
$29,023,618 $29,551,445 $33,446,750 $37,415,367 $41,561,039 $40,011,221
24,087,776 28,340,393 31,843,568 31,855,027 33,039,229 38,143,689
13,631,507 13,978,533 17,091,222 13,829,025 6,710,271 12,135,638
4,090,073 4,403,493 4,469,808 4,594,577 4,498,202 4,863,076
5,708,187 5,871,096 4,995,404 4,515,376 4,529,764 6,537,423
28,933 34,452 32,200 53,089 49,785 77,558
6,133,230 6,438,199 7,150,867 7,457,005 4,888,696 11,988,715
622,518 1,097,916 4,808,664 6,384,253 941,856 (6,724,092)
840,298 1,518,059
2,365,820 5,180,288 7,799,392 9,152,218 11,602,214 14,458,939
(1,105,038) (1,997,377) (2,101,222) (8,060,646) (4,984,746) (1,419,235)
45,205,422 (7,154,626) (531,591) 276,939 (1,378,533) (2,962,923)
129,792,046 85,743,812 109,845,360 107,472,230 101,457,777 118,628,068
27,710 37,072 633,704 824,916 52,623 (761,751)
1,105,038 1,997,377 2,101,222 8,060,646 4,984,746 1,419,235
1,132,748 2,034,449 2,734,926 8,885,562 5,037,369 657,484
$130,924,794 $87,778,261 $112,580,286 $116,357,792 $106,495,146 $119,285,552
$58,585,149 $21,846,906 $54,020,083 $29,583,936 $27,450,298 $64,728,482
3,194,331 5,399,973 7,182,944 13,500,924 16,828,524 7,032,523
$61,779,480 $27,246,879 $61,203,027 $43,084,860 $44,278,822 $71,761,005
151 203
CITY OF SOUTH SAN FRANCISCO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Fund
Nonspendable $805,677 $14,163 $1,134 $33,580 $474 $106 $372 $574 $574 $4,099
Restricted 20,582,335 19,201,948 18,372,633 18,372,633 14,763,033
Committed 1,406,430 3,879,451 2,536,790 3,654,283 11,780,724 16,725,897 22,619,868 17,723,338 17,723,338 16,083,977
Assigned 566,104 743,746 1,458,029 1,578,153 5,244,279 4,334,322 11,881,363 5,720,788 5,720,788 7,482,439
Unassigned 23,498,194 15,891,899 17,285,422 17,751,169 39,278,746 19,644,232 31,239,632 43,296,762 43,296,762 38,313,108
Total General Fund $26,276,405 $20,529,259 $21,281,375 $23,017,185 $56,304,223 $61,286,892 $84,943,183 $85,114,095 $85,114,095 $76,646,656 (a)
All Other Governmental Funds
Nonspendable $39,205
Restricted $30,539,396 $42,392,238 $43,437,361 $52,938,897 $55,195,500 $78,603,366 103,135,202 $140,143,149 $140,143,149 $243,582,187
Assigned 1,105,320 6,188,554 367,023 29,363,924 29,363,924 24,889,824
Unassigned (1,379,895) (521,604) (40,459)(88,331) (11,073) (2,971,345) 235,649 235,649 (1,437,892)
Total all other governmental funds $30,264,821 $41,870,634 $49,585,456 $53,305,920 $55,107,169 $78,592,293 $100,203,062 $169,742,722 $169,742,722 $267,034,119
#REF!#REF!56,541,226 62,399,893 70,866,831 70,866,831 76,323,105 185,146,245 343,680,775
(a) The change in total fund balance for the General Fund and other governmental funds is explained in Management's Discussion and Analysis.
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Thousands
Total Committed
Total Unassigned
Total Assigned
Total Restricted
Total Nonspendable
152 204
This Page Left Intentionally Blank
205
CITY OF SOUTH SAN FRANCISCO
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2013 2014 2015 2016
Revenues
Property Taxes $27,077,697 $23,010,136 $24,650,648 $26,438,620
Other Taxes 31,894,811 33,931,446 38,275,478 41,811,097
Intergovernmental revenues 13,054,594 10,757,440 10,453,071 12,360,354
Interest and Rents 3,238,089 3,632,693 3,531,966 4,207,453
Licenses and permits 3,054,451 4,366,271 4,795,158 6,896,897
Charges for services 9,275,724 16,864,409 13,387,712 15,386,358
Fines and forfeitures 1,753,682 1,528,319 1,221,413 791,756
Other 1,837,675 2,249,728 4,660,668 2,439,579
Total Revenues 91,186,723 96,340,442 100,976,114 110,332,114
Expenditures
Current:
General government 6,658,532 5,970,429 7,167,969 8,469,924
Fire Department 20,877,917 20,163,759 21,247,989 24,175,340
Police Department 22,542,135 23,309,568 23,611,743 25,458,986
Public works 9,186,493 16,791,894 15,923,071 14,846,346
Recreation and Community Services 10,927,433 11,552,502 11,826,407 13,234,028
Library 4,112,570 3,987,928 4,247,650 4,681,188
Economic and Community Development 20,512,545 5,972,966 5,917,508 7,907,655
Other 480,290 395,749
Capital outlay
Debt service:
Principal repayment 453,381 352,674 656,000
Interest and fiscal charges 52,139
Total Expenditures 94,869,764 88,202,427 90,775,301 99,825,216
Excess (deficiency) of revenues over
(under) expenditures (3,683,041)8,138,015 10,200,813 10,506,898
Other Financing Sources (Uses)
Transfers in 4,467,530 21,870,234 17,983,227 8,143,075
Transfers (out)(6,780,943) (24,149,582) (19,717,102)(13,193,699)
Lease revenue bonds issued
Premium on bonds
Sale of capital assets
Total other financing sources (uses)(2,313,413)(2,279,348)(1,733,875)(5,050,624)
Net Change in fund balances
before extraordinary and special items (5,996,454)5,858,667 8,466,938 5,456,274
Extraordinary item
Special item
Net change in fund balances ($5,996,454)$5,858,667 $8,466,938 $5,456,274
Debt service as a percentage of
noncapital expenditures 0.1%0.6%0.4%0.7%
For The Fiscal Year Ended June 30,
154 206
2017 2018 2019 2020 2021 2022
$35,156,848 $35,989,644 $40,597,617 $44,872,372 $46,449,735 $51,999,936
49,608,385 54,597,272 60,721,378 57,214,783 51,008,432 64,411,396
4,019,771 8,433,240 13,179,593 18,317,060 17,867,273 24,822,304
3,100,692 3,524,727 7,231,303 8,864,998 3,620,391 (2,537,324)
7,823,403 14,674,809 15,381,416 15,900,500 15,589,002 14,062,474
14,485,367 31,961,419 41,055,659 27,442,005 23,191,413 45,787,046
899,118 423,604 926,729 814,354 535,750 700,961
2,906,625 6,454,460 7,994,701 3,067,691 7,893,148 2,524,116
118,000,209 156,059,175 187,088,396 176,493,763 166,155,144 201,770,909
9,399,930 10,403,449 10,166,977 12,453,262 12,112,319 15,422,722
25,632,366 26,059,072 27,576,879 28,161,459 31,817,325 32,597,540
25,998,097 26,970,854 28,533,292 37,468,430 70,954,323 39,678,917
12,143,965 23,859,399 38,459,963 40,070,330 51,501,254 87,823,372
14,897,157 15,468,370 16,530,603 17,130,302 15,795,645 20,295,842
5,157,355 5,379,836 5,628,693 5,940,870 5,903,883 6,495,279
8,943,111 9,338,793 9,085,390 8,780,903 11,227,503 12,709,167
274,183 256,298 333,024 723,901 3,490,091 5,610,278
5,520,422
23,000 2,382,000 3,464,000 1,210,000 975,000 4,635,000
739,146 2,307,460 5,525,760
102,469,164 120,118,071 139,778,821 152,678,603 206,084,803 236,314,299
15,531,045 35,941,104 47,309,575 23,815,160 (39,929,659)(34,543,390)
14,327,130 26,486,651 22,230,499 38,117,966 37,970,252 36,220,467
(16,368,499)(30,795,941)(24,581,721)(46,647,023)(43,202,081)(38,772,007)
43,905,000 86,410,000 65,420,000
10,242,530 18,116,565 6,686,317
1,016,276 3,990,605 840,298 (2,718,691)1,507,641
(1,025,093)(318,685)(1,510,924)45,618,473 96,576,045 71,062,418
14,505,952 35,622,419 45,798,651 69,433,633 56,646,386 36,519,028
20,582,335 (7,154,626)(531,591)276,939 (1,378,533)(2,962,923)
$35,088,287 $28,467,793 $45,267,060 $69,710,572 $55,267,853 $33,556,105
0.0%2.2%3.0%1.7%2.9%7.0%
For The Fiscal Year Ended June 30,
155 207
Real Property Net Taxable value Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct
Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b)
2013 5,606,400,603$ 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%
2017 7,087,550,257$ 2,160,377,671$ 5,414,028,340$ 412,344,220$ 15,074,300,488$ 1,381,715,511$ 16,456,015,999$ 16,456,015,999$ 0.13632%
2018 7,458,269,085$ 2,171,084,856$ 5,838,028,479$ 383,589,586$ 15,850,972,006$ 1,423,348,022$ 17,274,320,028$ 17,274,320,028$ 0.13631%
2019 7,882,766,880$ 2,511,501,574$ 6,673,522,321$ 353,621,189$ 17,421,411,964$ 1,765,066,449$ 19,186,478,413$ 19,186,478,413$ 0.13640%
2020 8,459,303,983$ 2,717,851,133$ 7,535,473,093$ 491,981,925$ 19,204,610,134$ 1,727,590,717$ 20,932,200,851$ 20,932,200,851$ 0.13638%
2021 9,020,710,463$ 2,872,601,136$ 8,744,250,213$ 507,383,957$ 21,144,945,769$ 2,056,800,753$ 23,201,746,522$ 23,201,746,522$ 0.13622%
2022 9,440,006,474$ 4,059,376,407$ 8,650,209,742$ 508,430,937$ 22,658,023,560$ 1,993,694,829$ 24,651,718,389$ 24,651,718,389$ 0.13587%
Source: HdL Coren & Cone, San Mateo County Assessor 2012/13-2021/22 Tax Property Values.
(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
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Millions
Series1 Series2
156 208
Fiscal Basic School Total Direct/Overlapping
Year Levy Districts Tax Rates
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)
2017 1.000 0.1749
1.1749 (1,23)
2018 1.000 0.1642
1.1642 (1,24)
2019 1.000 0.1548
1.1548 (1,25)
2020 1.000 0.1648
1.1648 (1,26)
2021 1.000 0.1893
1.1893 (1,27)
2022 1.000 0.1542
1.1542 (1,28)
Notes:
(28) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0579, which includes SSFUSD & San Mateo Jr College
bond. 4 has a rate of 1.1190 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SMCCCD 2021
and SM Jr College bonds. 1 has a rate of 1.1103, which includes San Bruno Pk Elem bond, SM Union High, SM High,
SMCCCD 2021 and San Mateo Jr. Coll bonds.
(27) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0563, which includes SSFUSD & San Mateo Jr College
bond. 4 has a rate of 1.1543 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College
bonds. 1 has a rate of 1.1112, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond
and San Mateo Jr. Coll bonds.
(26) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0647, which includes SSFUSD & San Mateo Jr College
bond. 4 has a rate of 1.1267 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College
bonds. 1 has a rate of 1.1148, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond
and San Mateo Jr. Coll bonds.
CITY OF SOUTH SAN FRANCISCO
DIRECT AND OVERLAPPING
PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(1) Like other cities, South San Francisco includes several property tax rate areas with different rates.
(23) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0714 percent, which includes SSFUSD bonds & San Mateo Jr
College bond. 4 has a rate of 1.1282 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr
College bonds. 1 has a rate of 1.0910 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College
bond and San Mateo Comm Coll bond.
(24) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0601 percent, which includes SSFUSD bonds & San Mateo Jr
College bond. 4 has a rate of 1.1276 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr
College bonds. 1 has a rate of 1.0900 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College
bond and San Mateo Comm Coll bond.
(25) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0597 percent, which includes SSFUSD & San Mateo Jr
College bond. 4 has a rate of 1.1126 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD,
SM Jr College bonds. 1 has a rate of 1.0801 percent, which includes San Bruno Pk Elem bond, SM Union High, SM
High, SM Jr College bond and San Mateo Jr. Coll bonds.
(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, 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.
157 209
This Page Left Intentionally Blank
210
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.*$3,007,406,548 1 12.20% $1,886,267,716 1 13.48%
HCP Oyster Point III LLC 842,373,175 2 3.42%--
ARE San Francisco LLC*802,990,156 3 3.26% 333,776,264 4 2.39%
Slough SSF LLC*692,494,640 4 2.81% 477,096,721 3 3.41%
GNS North Tower LP*467,753,941 5 1.90%--
GNS South Tower LP*427,069,629 6 1.73%--
United Airlines Inc 346,047,018 7 1.40% 206,348,820 6 1.47%
Britannia Pointe Grand LP 325,871,517 8 1.32% 280,470,089 5 2.00%
ARE East Grand Ave Owner LLC 242,919,318 9 0.99%--
BMR 1000 Gateway LP*232,173,757 10 0.94%--
Slough BTC LLC -- ---- 560,040,064 2 4.00%
BMR 180 Oyster Point LLC*-- ---- 135,762,000 7 0.97%
Gateway Center LLC -- ---- 135,430,223 8 0.97%
Britannia Biotech Gateway LP -- ---- 132,496,505 9 0.95%
Myers Peninsula Venture LLC*-- ---- 122,122,090 10 0.87%
Subtotal $7,387,099,699 29.97% $4,269,810,492 30.51%
Total Net Assessed Valuation:
Fiscal Year 2021-22 $24,651,718,389
Fiscal Year 2012-13 $13,992,796,951
* Pending Appeals on Parcels
HdL Coren & Cone, 2012/13 & 2021/22 Top Ten Property Taxpayers (Net Values).
San Mateo County Assessor 2012/13 & 2021/22 Combined Tax Rolls and the SBE Non Unitary Tax Roll
Source:
2021-22 2012-13
CITY OF SOUTH SAN FRANCISCO
Principal Property Tax Payers
Current Year and Nine Years Ago
159 211
Fiscal Percent of
Year Allocations (5) Collections Delinquencies Delinquent taxes
2013 13,740,246$ (4)(4)0.0%
2014 14,928,197 (4)(4)0.0%
2015 15,184,788 (4)(4)0.0%
2016 15,994,773 (4)(4)0.0%
2017 17,065,875 (4)(4)0.0%
2018 17,894,855 (4)(4)0.0%
2019 19,365,814 (4)(4)0.0%
2020 20,651,650 (4)(4)0.0%
2021 22,660,544 (4)(4)0.0%
2022 23,680,782 (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
$18
$19
$20
$21
$22
$23
$24
$25
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Millions
160 212
CITY OF SOUTH SAN FRANCISCO
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Loans from Lease
Fiscal Successor Revenue Capital
Year Agency Bonds Lease Total
2013 13,343,039$ 3,084,553$ 16,427,592$
2014 11,722,826 3,316,836 15,039,662
2015 11,370,152 2,786,573 14,156,725
2016 10,714,152 2,238,998 12,953,150
2017 10,691,152 1,673,522 12,364,674
2018 8,309,152 1,135,102 9,444,254
2019 4,845,152 753,619 5,598,771
2020 3,635,152 43,905,000 489,781 48,029,933
2021 3,595,152 156,980,389 285,529 160,861,070
2022 2,150,152 224,792,690 144,637 227,087,479
Business-Type Activities
Sewer State Water Total Percentage
Fiscal Revenue Resources Primary of Personal Per
Year Bonds Loans Total Government Income (a) Capita (a)
2013 4,640,000$ 52,118,587$ 56,758,587$ 73,186,179$ 3.65% 1,113.78
2014 4,385,000 47,591,019 51,976,019 67,015,681 3.30% 1,019.27
2015 4,120,000 43,543,614 47,663,614 61,820,339 2.92% 957.19
2016 3,850,000 39,392,832 43,242,832 56,195,982 2.59% 858.60
2017 3,570,000 35,136,032 38,706,032 51,070,706 2.22% 761.32
2018 3,275,000 30,770,503 34,045,503 43,489,757 1.80% 648.35
2019 2,970,000 35,148,205 38,118,205 43,716,976 1.63% 644.04
2020 2,655,000 50,150,607 52,805,607 100,835,540 3.48% 1,501.98
2021 2,325,000 60,480,459 62,805,459 223,666,529 7.10% 3,468.13
2022 1,980,000 60,799,450 62,779,450 289,866,929 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.
$-
$50
$100
$150
$200
$250
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022MillionsTotal Governmental Total Business
161 213
CITY OF SOUTH SAN FRANCISCO
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2022
2021-22 Assessed Valuation:$24,651,718,389
Redevelopment Incremental Valuation:-
Adjusted Assessed Valuation:$24,651,718,389
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2022 % Applicable (1) Debt 6/30/22
San Mateo Community College District $733,897,184 9.255% $67,922,184
Jefferson Union High School District 250,808,014 4.467 11,203,594
South San Francisco Unified School District 164,131,912 90.986 149,337,061
Brisbane School District 24,851,439 24.834 6,171,606
City of South San Francisco Community Facilities District No. 2021-1 19,685,000 100.000 19,685,000
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $254,319,445
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Mateo County General Fund Obligations $612,605,687 9.255% $56,696,656
San Mateo County Board of Education Certificates of Participation 6,490,000 9.255 600,650
San Mateo County Flood Control and Sea LRR District General Fund Obligations 14,675,000 61.572 9,035,691
South San Francisco Unified School District General Fund Obligations 2,980,000 90.986 2,711,383
Jefferson Union High School District Certificates of Participation 47,490,000 4.467 $2,121,378
City of South San Francisco Lease Revenue Bonds 224,792,690 100.000 224,792,690
City of South San Francisco Loans Payable 2,150,152 100.000 $2,150,152
City of South San Francisco Capital Leases 144,637 100.000 144,637
San Mateo County Mosquito and Vector Control District General Fund Obligations 3,825,000 9.255 $354,004
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT:$298,607,241
TOTAL DIRECT DEBT 227,087,479
Total Overlapping Debt $325,839,207
COMBINED TOTAL DEBT $552,926,686 (2)
(1) Percentage of overlapping debt applicable to the city is estimated uisng taxable assessed property value. Applicable percentages were estimated
by determining the portion of the overlapping district's asseessed value that is within the boundaries of the city divided by the destrict's total taxable ass
Ratios to Adjusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.03%
Total Direct Debt 0.92%
Combined Total Debt 2.24%
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 and non-bonded capital lease obligations.
162 214
ASSESSED VALUATION:$24,651,718,389
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)$924,439,440
LESS AMOUNT OF DEBT SUBJECT TO LIMIT:0
LEGAL BONDED DEBT MARGIN $924,439,440
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2013 524,729,886$ 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%
2017 617,102,145 0 617,102,145 0.00%
2018 647,787,001 0 647,787,001 0.00%
2019 719,492,940 0 719,492,940 0.00%
2020 784,957,532 0 784,957,532 0.00%
2021 870,065,495 0 870,065,495 0.00%
2022 924,439,440 0 924,439,440 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, 2022
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.
163 215
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
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
2017 25,684,966 17,357,273 8,327,693 280,000 169,976 449,976 18.51
2018 28,287,485 19,073,940 9,213,545 295,000 158,616 453,616 20.31
2019 30,393,993 20,398,157 9,995,836 305,000 146,616 451,616 22.13
2020 31,807,110 21,064,165 10,742,945 315,000 134,019 449,019 23.93
2021 33,885,393 21,401,332 12,484,061 330,000 120,593 450,593 27.71
2022 27,789,553 20,992,476 6,797,077 345,000 106,331 451,331 15.06
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
$35
$40
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022MillionsRevenue (1)
Expenses (2)
164 216
Fiscal Year
2016 2017 2018 2019 2020 2021 2022
Revenues
Service Charges $19,515,093 $19,750,636 $22,188,154 $23,556,871 $24,150,139 $24,526,952 $22,567,226
Connection and Other Fees 104,283 147,134 229,002 521,205 146,672 178,092 210,980
Interest Income 238,389 23,552 31,061 488,437 623,256 41,888 (652,348)
Developer Fees
Other Cities' Participation (1)5,752,765 5,763,644 5,834,455 5,827,480 6,887,043 9,138,461 5,663,695
Total Revenues $25,610,530 $25,684,966 $28,282,672 $30,393,993 $31,807,110 $33,885,393 $27,789,553
Operating Expenses (2)$18,759,650 $13,514,718 $19,073,943 $20,398,147 $21,064,167 $21,401,330 $21,049,553
Wastewater System Net Revenues $6,850,880 $12,170,248 $9,208,729 $9,995,846 $10,742,943 $12,484,063 $6,740,000
Parity Debt Service (3)
State Water Resources Control Board Loans $5,449,692 $5,454,747 $5,469,175 $5,477,075 $5,485,587 $5,497,048 $5,510,447
CSCDA Series 2005D Revenue Bonds 178,036 167,284 155,706 143,608 130,815 117,175 102,716
Total Parity Debt $5,627,728 $5,622,031 $5,624,881 $5,620,683 $5,616,402 $5,614,223 $5,613,163
Total Parity Debt Service Coverage 1.22 2.16 1.64 1.78 1.91 2.22 1.20
10,012,867 10,012,867 10,012,867 10,012,867 10,012,867 10,012,867 10,012,867
(2) Excludes depreciation, capital expenditures and debt service.
(3) Includes Sewer Revenue Bonds and State Water Loan payments
(1) Primarily consists of payments from the City of San Bruno. The City of San Bruno is a co-owner of the Plant and pays the City in advance on a quarterly basis for the City of San Bruno's share of
operating costs. See "Wastewater System" herein.
(4) Reflects an adopted increase in rates for Fiscal Year 2004-05 of 25% per Resolution No. 68-2004, adopted by the City Council on July 14, 2004 and effective on and after July 1, 2004 and an adopted
increase in rates for Fiscal Year 2005-06 of 9% per Resolution No. 68-2005, adopted by the City Council on June 22, 2005 and effective on and after June 22, 2005.
CITY OF SOUTH SAN FRANCISCO
SEWER DEBT SERVICE COVERAGE
SEWER RENTAL ENTERPRISE FUND
LAST SEVEN FISCAL YEARS
165 217
CITY OF SOUTH SAN FRANCISCO
REDEVELOPMENT PLEDGED REVENUE COVERAGE
LAST EIGHT FISCAL YEARS
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements Fiscal Available Debt Service Requirements
Year Revenue Principal Interest Total Coverage Year Revenue Principal Interest Total Coverage
2015 1,605,000$ 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
2017 1,745,000 2,761,756 4,506,756 2017 255,000 34,375 289,375
2018 2018 275,000 21,125 296,125
2019 2019 285,000 7,125 292,125
2020 2020
2021 2021
2022 2022
Bond was paid off in fiscal year 2017
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
2015
2016
2017
2018
2019
2020
2021
2022
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements
Year Revenue Principal Interest Total Coverage
2015 1,605,000 2,904,331 4,509,331
2016 1,680,000 2,834,619 4,514,619
2017 1,745,000 2,761,756 4,506,756
2018 0 0 0
2019 0 0 0
2020 0 0 0
2021 0 0 0
2022 0 0 0
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
166 218
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 (4) % of County
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%
2016 65,451 2,167,750$ 33,120$ 3.2% 764,797 8.56%
2017 67,082 2,303,425$ 35,193$ 3.2% 771,410 8.70%
2018 67,078 2,421,033$ 36,092$ 2.3% 769,545 8.72%
2019 67,879 2,684,438$ 39,547$ 2.3% 766,573 8.85%
2020 67,135 2,895,980$ 43,136$ 8.9% 765,245 8.77%
2021 64,492 3,148,543$ 48,820$ 5.7% 737,888 8.74%
Notes:
** All data were updated to reflect the City of South San Francisco's current information available
through HDL, Coren & Cone
Data Sources:
(1) City Population: HDL/California State Dept of Finance.
(2) Personal and per capita income: HDL, Coren & Cone
(3) Unemployment Data: HDL/California Employment Development Department
(4) San Mateo County Population- https://www.census.gov/quickfacts/fact/table/sanmateocountycalifornia,CA/PST045219
CITY OF SOUTH SAN FRANCISCO
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
City Personal Income
(in Thousands)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
City Unemployment Rate
8.20%
8.30%
8.40%
8.50%
8.60%
8.70%
8.80%
8.90%
City Population % of County
$-
$10,000
$20,000
$30,000
$40,000
$50,000
City Per Capita Personal Income
167 219
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment
Genentech Inc.8,632 1 13.4% 7,777 1 11.9%
ABBVIE 1,000 2 1.6%
Costco Wholesale (4 stores)834 3 1.3% 508 3 0.8%
Life Technologies Corporation 622 4 1.0% 650 2 1.0%
Amgen Inc 600 5 0.9% 419 4 0.6%
Verily Life Sciences LLC 555 6 0.9%
Amazon.com Services 425 7 0.7%
ZS Associates, Inc 390 8 0.6%
MRL San Francisco, LLC 317 9 0.5%
Frank & Grossman Landscape Contractors 265 10 0.4%
Successfactors, Inc 400 5 0.6%
Guardsmark LLC 351 6 0.5%
American Etc Inc/ Royal Laundry 318 7 0.5%
The New French Bakery, Inc 300 8 0.5%
DBI Beverage 232 9 0.4%
Oroweat/ Entenmann's 230 10 0.4%
Subtotal 13,640 21.1% 11,185 17.2%
Total City Population 64,492 65,127
Data Sources:
(1) SSF Business License Database- Business licenses expiring 12/31/22.
(2) City of South San Francisco CAFR 2012-13
(3) Population: HDL/California State Dept of Finance 2021.
2012-132021-22
CITY OF SOUTH SAN FRANCISCO
Principal Employers
Current Year and Nine Years Ago
168 220
Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Government (1) 36.60 37.60 40.60 47.10 47.10 43.60 41.60 46.60 46.60 51.30
Fire Department (2)82.48 82.98 83.48 92.68 92.68 92.68 91.93 91.68 91.68 93.49
Police Department 115.65 119.75 118.87 120.87 120.87 120.87 122.87 121.87 120.92 122.09
Park, Rec. & Maintenance Services 111.66 117.21 121.31 134.16 137.19 144.29 144.79 151.75 143.84 150.44
Library 35.35 37.66 37.71 38.71 39.26 40.49 41.49 41.49 38.56 38.15
Economic and Comm. Development 23.45 24.40 26.15 27.15 29.40 30.40 30.40 31.40 29.00 31.40
Public Works (2) 45.02 47.21 47.68 49.00 49.00 49.00 53.00 52.00 47.00 52.85
Water Quality Control Plant 38.82 39.63 39.06 41.74 41.50 41.50 41.50 41.50 41.50 41.50
Total 489.03 506.44 514.86 551.41 557.00 562.83 567.58 578.29 559.10 581.22
Notes:
1. City Council, City Treasurer, City Clerk, City Manager, HR, IT and Finance are under General Government.
2. Oversight of the Code Enforcement has been moved from Fire to Public Works Department.
Source: City of South San Francisco's FY2013-2022 Adopted Operating budget.
CITY OF SOUTH SAN FRANCISCO
Full-Time Equivalent City Government
Employees by Function
Last Ten Fiscal Years (Adopted Operating Budget)
0.00
100.00
200.00
300.00
400.00
500.00
600.00
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Government (1)Fire Department (2)Police Department Park, Rec. & Maintenance Services
Library Economic and Comm. Development Public Works (2)Water Quality Control Plant
169 221
2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
Public safety:
Fire:
Inspections conducted 1,817 2,563 3,426 2,292 2,511 2,375 3,888 3,060
Police:
Police calls for service 31,532 32,477 33,313 34,811 38,299 38,541 40,503 60,333
Law violations:
Part I crimes 1,874 2,126 2,103 2,276 2,007 2,070 3,481 1,955
Physical arrests (adult and juvenile)1,933 2,071 1,870 1,891 1,943 1,871 1,635 2,025
Traffic violations 3,828 4,211 3,785 3,359 3,620 4,172 2,119 1,985
Parking violations 13,378 12,006 15,291 18,339 26,228 12,269 13,276 17,667
Public works
Street resurfacing (miles) (Eng Div) 0 2 8 3.3 7.0 7.9 19.57 9.60
Potholes repaired (square miles
prior)/(square feet)0.11 2 0 (2) 3221 410 190 165 264
Asphalt used for street repairs (tons) 250 151 94 148 13 46 69 68
Culture and recreation:
Recreation class participants (5) 26,879 23,399 23,939 25,688 23,394 17,333 (4) 5,282 8,631
Library:
Total items borrowed 643,630 565,806 558,106 544,059 582,497
(3) 450,637 (3) 245,869 456,652
Items in collection 130,106 (1) 208,400 209,895 219,114 228,224 247,393 260,205 229,891
Wastewater
Residential connections 16,470 16,491 16,488 12,556 12,559 12,549 12,571 12,672
Commercial connections 1,560 1,561 1,562 1,575 1,576 1,582 1,575 1,523
Other connections 128 131 140 140 140 140 140 140
Average daily sewage treatment
(millions of gallons)8.89 7.92 8.41 8.62 8.62 7.12 6.76 7.35
Note: N/A denotes information not available.
(1) New items added for Grand Library and electronic books are also included.
(2) Beginning 2018, pothole repairs will be measured by square feet instead of square miles.
(3) Fewer items borrowed in FY2020 and FY2021 due to COVID-19 closures.
(4) Summer camp and traditional sports programs included. Lower participant counts due to COVID-19 limitations and closures.
(5) Registration counts have excluded all withdrawals from the classes for the year while the numbers in 2015 did not.
CITY OF SOUTH SAN FRANCISCO
Operating Indicators by Function/Program
Last Eight Fiscal Years
170 222
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
Public safety:
Fire stations 5555555555
Police stations 1111111111
Police Fleet 51 50 53 53 52 59 63 60 63 60
Public works
Miles of streets 127 127 127 127 127 127 127 127 127 127
Street lights (3)4,505 4,505 4,505 4,505 4,505 4,531 4,531 4,531 4,581 4,581
Parking District lights (4)20 20 20 20 16 16 16 16 16 16
Traffic Signals 74 74 74 76 76 76 76 76 80 80
Culture and recreation:
Community services:
City parks 28 28 28 28 28 28 28 28 28 28
City parks acreage 190 190 190 190 190 190 210 210 210 210
Playgrounds (5)24 24 24 24 24 24 24 34 34 34
City trails 6666666666
Community gardens 1111111111
Community centers 4444444444
Senior centers (2)1111111111
Skate Park 1111111111
Dog park 1111111111
Swimming pools 1111111111
Tennis courts 7777777777
Basketball Courts 12 12 12 12 12 12 12 12 12 12
Baseball/softball diamonds11111111111111111111
Soccer/football fields 5555555555
Library:
City Libraries (1)2222222222
Wastewater
Miles of sanitary sewers 164 164 164 164 164 164 164 164 164 164
Miles of storm sewers 125 125 125 125 125 125 125 125 125 125
Number of treatment plants 1111111111
Source: ssf.net/depts/rcs; Director of Rec & Comm Services; Superintendent of parks & Maintenance
(1) Community Learning Center not included on count as it is only a homework center not a library.
(2) The only senior center is Magnolia Center but programming still continues at El Camino.
(3) Year 2013- Includes all lights in SSF billed as LS-2 from PG&E.
(4) Year 2017- Lot 6 sold for Rotary Plaza development.
(5) Year 2020 -Playgrounds in the Common Greens areas are now included.
CITY OF SOUTH SAN FRANCISCO
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
171 223
2019 2020 2021 2022
Transient Occupancy Tax Detail
TOT Collected 15,535,213$ 12,591,459$ 6,215,172$ 11,268,807$
1% Measure I Special Tax 1,556,009 1,114,911 495,099 866,831
Total TOT Collection 17,091,222$ 13,706,371$ 6,710,270$ 12,135,638$
1% Measure I Special Tax Use
Police 311,202$ 222,982$ 99,020$ 173,366$
Fire 311,202 222,982 99,020 173,366
Library 311,202 222,982 99,020 173,366
Parks 311,202 222,982 99,020 173,366
Recreation 311,202 222,982 99,020 173,366
Total 1% Measure I Special Tax 1,556,009$ 1,114,911$ 495,099$ 866,831$
* Note: The current TOT consists of three components - a 9% general excise tax (Measure FF) that generates General Fund revenues; a 1% special tax (Measure I-
effective January 1, 2005) was earmarked for use to supplement funding parks, recreation, library, and public safety services (SSFMC 4.20.033) and a $2.50 tax
devoted to the acquistion, renovation, maintenance and operation of the South San Francisco Conference Center. The City Council last increased the total TOT
rate from 9% to 10% in 2009 with the incremental 1% increase being a general tax. City's TOT rate from 10% to 12% effective january 1, 2019. A subsequent 2%
increase over the next two years would revise the TOT rate to 13% (effective January 1, 2020) and 14% (effective January 1, 2021).
CITY OF SOUTH SAN FRANCISCO
Collection and Use of 1% Special Transient Occupancy Tax (TOT) Approved by Voters as Measure I *
Miscellaneous Information
Last Four Fiscal Years
172 224
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-104 Agenda Date:2/8/2023
Version:1 Item #:7.
Report regarding a resolution accepting the Annual Comprehensive Financial Report (ACFR)and other related
Miscellaneous reports for Fiscal Year 2021-22 (Karen Chang, Finance Director)
RECOMMENDATION
Staff recommends that the City Council review and accept the Audited Financial Statements for the City of
South San Francisco for the fiscal year ended June 30, 2022.
BACKGROUND/DISCUSSION
Summary
Each year the City of South San Francisco is required to prepare audited financial statements in addition to a
number of related reports.This action requests that City Council formally accept these reports.A copy of the
Annual Comprehensive Financial Report (ACFR) is available for public inspection at the City’s website.
For FY 2021-22,the City has received an unmodified or clean opinion on the financial statements from its
auditors Maze &Associates (Maze).In addition,all requirements have been met to achieve the highest
standard in government accounting and financial reporting:the Certificate of Achievement for Excellence in
Financial Reporting issued by the Government Finance Officers Association (GFOA)of the United States and
Canada.The City of South San Francisco has received this certificate annually for the last 20 consecutive
years.
Background
The City’s independent auditors,Maze,have completed the audit of the City’s financial transactions and
internal controls for FY 2021-22.The following reports are prepared by the City of South San Francisco and
audited by the City’s independent auditors.Maze also reviewed the City’s Appropriations Limit Calculation for
fiscal year 2021-22.
·Annual Comprehensive Financial Report (ACFR)is the overall financial report for the entire city
organization and provides information about the financial results of operations and numerous required
disclosures.This is the financial report prepared by the City and audited by the independent auditors to
provide reasonable assurance that the financial statements are fairly presented in accordance with
generally accepted accounting principles (GAAP)in the United States.This report contains the
Independent Auditors’Report,which is prepared by the auditors based on their examination of the
City’s financial transactions for the fiscal year ending June 30, 2022.
The ACFR shows the total of all financial accounting for the fiscal year.The financial reporting
provided in the ACFR is in greater detail than the basic financial statements and is made up of three
primary sections:
·Introductory Section:provides general information about the City including the letter of
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·Introductory Section:provides general information about the City including the letter of
transmittal, list of principal officers, and an organization chart.
·Financial Section:provides the overall financial information for the City including the report of
the independent auditor,management’s discussion and analysis (MD&A),the basic financial
statements,notes to the basic financial statements,required supplementary information,and
other supplementary statements and schedules.
·Statistical Section:provides a broad range of operational,economic,and historical data
providing context for assessing the City’s fiscal condition.This section provides information
about general financial trends,revenue and debt capacities,economic and demographic trends,
and operating information.
·The City of South San Francisco Transportation Development Act Article III Fund Financial
Statements and Independent Auditors’Reports (TDA)is the required audit report for the grant funds
received by the City for local streets and roads,construction and maintenance,sidewalk ramp and
pedestrian trail projects.Copies of the report are submitted to the Metropolitan Transportation
Commission and State Controller’s Office for their review to show that the City is in compliance with
the requirements governing expenditures of MTC funds for the year ending June 30, 2022.
·San Mateo County Measure A Funds financial statements and Independent Auditors’Report is
required by San Mateo County Transportation Authority.Measure A funds,the one-half of one percent
sales and use tax approved by the San Mateo County voters in 1988 to provide funding for
improvements of local transportation.Copies of the report are submitted to SamTrans to show that the
City is in compliance with the requirements governing expenditures of Measure A funds for the year
ending June 30, 2022.
·San Mateo County Measure W Funds financial statements and Independent Auditors’Report is
required by San Mateo County Transportation Authority.Measure W funds,the one-half of one percent
sales and use tax approved by the San Mateo County voters in 2018 to provide funding for local safety,
pothole and congestion relief improvement program that includes transportation and public transit.
Copies of the report are submitted to SamTrans to show that the City is in compliance with the
requirements governing expenditures of Measure W funds for the year ending June 30, 2022.
·Independent Accountants’Report on Agreed-Upon Procedures Applied to Appropriations Limit
Schedule is required by the State of California in Section 1.5 of Article XIIIB of the California
Constitution.Article XIIIB of the California Constitution limits the amount that governmental agencies
can annually appropriate from proceeds of taxes.An annual calculation,factoring in population and
inflation changes,is performed each year to determine the new appropriation limit.The appropriation
limit for the FY 2022-23 was approved by Council by resolution in June 2022.
·The Auditors’Required Communications Letter includes the auditors’letter,addressed to the City,
communicating their responsibilities in performing the audit and if any,significant findings,and issues
detected during the course of the audit.The report references the City of South San Francisco
Management Representation Letter,addressed to the auditors,communicating management’s opinion of
the City’s financial condition, internal controls, and adherence with laws and regulations.
·The Independent Auditors’Memorandum on Internal Control report includes a review of the City’s
internal controls,based on the audits of the ACFR and Measure A and W financial reports.If the
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internal controls,based on the audits of the ACFR and Measure A and W financial reports.If the
auditor identifies deficiencies, they identify recommendations to improve internal controls.
Discussion
Financial Highlights
Maze found the City’s financial statements present fairly,in all material ways,the respective financial position
of the City as of as of June 30, 2022 (Independent Auditor’s Report, Opinions).
The audited financial statements include the statement of net position,statement of activities and changes in net
position,balance sheets,statement of revenues,expenditures,and changes in fund balance,and statements of
cash flows.
Please refer to the Management’s Discussion and Analysis section in the ACFR for detailed discussion
regarding the City’s financial performance and position.All references to the General Fund within the ACFR
include Measure W.Please refer to pages 116-118 for financials relating only to the main general purpose fund.
Key financial highlights for the year ended June 30, 2022 are as follows:
·Total Net Position for Governmental activities in FY 2021-22 increased by $64.7 million,or 19.5%,
from $332.1 million in the prior year,to $396.8 million.The increase is primarily due to further
investment in City assets through bond issuance,an increase in cash and investments due to stronger
revenues in the year,as well as a greater restricted cash balance due to the 2022A bond issuance prior to
year-end.The growth in assets of $146.5 million is partially offset by a $66.3 million increase in long-
term debt liabilities but this offset is reduced by lower “other liabilities”($47.6 million lower than prior
year) due to a significant drop in the net pension liability at year-end.
·Total Net Position for Business-Type activities,which includes Wastewater treatment (or Sewer),
Parking and Storm Water Funds,in FY 2021-22 increased by $7.1 million,or 5.4%,from $130.8 million
in the prior year,to $137.9 million.The growth in Net Position is due to a $10 million increase in
capital assets due to construction work underway at the City’s Water Quality Control Plant (WQCP),
lower accounts payable at year-end and a drop in the net pension liability.This is partially offset by
lower cash and investments, and accounts receivable balances at year-end.
·The City’s Governmental Funds reported combined fund balances of $343.7 million,an increase of
$33.6 million,or 10.8%,compared to the prior year.This was primarily due to the creation of new
governmental funds for the capital improvement projects at Orange Memorial Park funded by the series
2022A bond issuance.The General Fund ending fund balance,which includes Measure W,was $76.6
million,reflecting an increase of $0.9 million,or 1.2%,over the prior year primarily due to stronger
revenues in most major revenue categories.
·The combined General Fund balance was $76.6 million,of which $11.9 million was attributable to
Measure W.Of the remaining fund balance of $64.7 million,$25.1 million was held in reserve in
accordance with the city policy which is aligned with the Governmental Finance Officers Association
(GFOA)recommended reserve practice.The remaining $39.6 million was held in designation/reserve
accounts for various purposes such as encumbrances,capital projects,land held for development and
unassigned fund balances.
·Combined General Fund revenues,excluding transfers in and special items,were $140.9 million whichCity of South San Francisco Printed on 2/3/2023Page 3 of 5
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·Combined General Fund revenues,excluding transfers in and special items,were $140.9 million which
was $15.3 million,or 12.2%higher than the final amended budget.The increase was largely due to
higher-than-expected Vehicle Licensing Fee (VLF)payments,higher sales tax revenue,including
Measure W,and higher than expected transient occupancy taxes.The increases were offset by reduced
intergovernmental revenue,licenses and permits.The general purpose General Fund revenues,
excluding transfers in and special items, were $125.5 million.
·Combined General Fund expenditures,excluding transfers and including encumbrances,were $129.5
million,which was $3.7 million,or 2.9%,higher than final budget due to overspends in various
departments and carry over of a significant number of purchase orders.However,if we excluded the
$7.5 million encumbrances carried over,the combined General Fund expenditure for FY 2021-22 was
$122.0 million.The general purpose General Fund expenditures,excluding transfers and special items
and including encumbrances was $129.2 million.
·Overall,the general purpose General Fund experienced a $3 million deficit in FY 2021-22,including all
transfers and one-time special items but excluding encumbrances,compared with a projected $2.8
million in the original adopted budget.
·The Sewer Enterprise fund reported operating revenue (before non-operating revenues and operating
transfers)of $28.4 million in FY2021-22,a decrease of $5.4 million,or 16.0%,from $33.8 million in
the prior year.This substantial reduction in revenue is a direct impact from the COVID-19 pandemic
during which many commercial locations closed for long periods of time.Since charges are always
based on the prior year water use,revenues for FY2021-22 were lower than normal.Operating expenses
decreased $0.3 million,or 1.0%,from $26.1 million to $25.8 million,due to lower payroll-related
expenses from vacancies,partially offset by increases in professional services,program supplies and
utilities.
Auditors’ Communication with Those Charged with Governance
Professional auditing standards require the auditors to communicate in writing to management and those
charged with governance.Maze and Associates has issued the Memorandum on Internal Control and Required
Communications, and the memorandum is attached to this staff report for your review.
Staff is pleased to inform the Council that there were no findings that resulted from the audit.
Staff and Maze will issue a Single Audit Report in March 2022.The Single Audit Report is the audit report
required by the Single audit Uniform Guidance.This report contains a schedule of Federal Financial Assistance
that summarizes Federal grant activity in the City of South San Francisco for the fiscal year.
CONCLUSION
In Summary,Maze found the general-purpose financial statements present fairly the City’s financial position as
of June 30,2022.This is the highest-level opinion that can be rendered by the auditors.This opinion assures
that the City’s financial statements are in conformity with accounting principles generally accepted in the
United States and was rendered on all City funds.Other reports such as TDA,Measure A and W also meet the
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compliance requirements.
Staff recommend that the City Council formally accepts these reports.
Attachments:
1.City’s Presentation
2.Auditor’s Presentation
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FY 2021-22
Annual Comprehensive Financial Report (ACFR)
City Council Meeting
Karen Chang, Director of Finance
FEBRUARY 8, 2023 230
FY 2021-22 ACFR Overview
2
Annually audited by Maze & Associates –the City’s
independent audit firm
Prepared following the guidelines recommended
by:
•Government Finance Officers Association (GFOA) of the United
States and Canada
•Standards adopted by the Governmental Accounting
Standards Board (GASB)
231
FY 2021-22 ACFR Layout
•Introductory Section
•Letter of Transmittal
•Provides the formal transmittal of the ACFR from
management
•Provides information useful in assessing an entity’s
economic condition
•GFOA Certificate of Achievement
•Organization Chart
•City Council & Principal Officers
3232
FY 2021-22
ACFR Layout
•Financial Section:
•Independent Auditor’s Report (Opinion)
•Maze
•Unmodified Opinion
•Auditors rendered City’s Financial Position is presented fairly
•Management’s Discussion and Analysis
•Overview of the entity’s basic financial statements
•Provides comparative data from prior years
•Provides the results of the entity’s overall financial position and results of operations
•Discussion of capital assets and long-term debt activity
•Basic Financial Statements of the City
•Government-wide financial statements, fund financial statements, notes to the financial statements, and supplementary information
4233
FY 2021-22 ACFR Layout
•Financial Section (continued):
•Notes to the Financial Statements
•Presents detailed information as a context for
understanding the information in the financial
statements
•Statistical Section:
•Presents supplementary information about the City’s
overall Fiscal condition.
5234
General Funds Highlights
•Revenues* (excluding transfers) = $125.5 million
•Expenditures (excluding transfers) = $121.8 million
•General Fund* Operating Surplus = $3.7M
•Revenues = $125.5 million
•Expenditures = $121.8 million
•Transfers = -$5.3 million
•* Excludes Measure W Sales Tax & Encumbrances
6235
General
Fund
Highlights
General Fund’s fund balance* = $64.8M
•$3M Deficit in FY 2021-22
•$-2.8M per Adopted budget
* Excludes Measure W Sales Tax
7236
FY2021-22 GF Reserves & Surplus Fund Balance
City Reserves
General Reserves (City Policy)$ 25,100,000*
Pension Reserves 5,545,000
Infrastructure Reserves 18,033,000**
TOTAL Reserve at 6/30/22 $ 48,678,000
Available Unassigned GF Fund Balance $ 12,327,000 Combined:
$61,005,000
8
* Per GFOA best practices. Represents approx. 2-3 months operating needs
**Approx. $10m has been budgeted for use to date in FY2022-23
237
QUESTIONS?
Q&A
9238
1/27/2023
1
Independent Auditor Presentation for the
Fiscal Year Ended June 30, 2022
Annual Comprehensive Financial Report and
Other Related Annual Audit Reports
City of South San Francisco
City Council February 8, 2023
Amy L. Meyer, CPA
Partner
1
Annual Audit
Maze and Associates – we are an independent
CPA firm, independent from the City of South San
Francisco and its component units.
Audit was conducted in accordance with auditing
standards generally accepted in the United States of
America and Government Auditing Standards issued by
the Comptroller General of the United States of America.
2
1
2
239
1/27/2023
2
We Audit
City (Annual Comprehensive Financial Report)
Transportation Development Act (TDA)
Financial Statements and Compliance
Compliance Testing for Measure A and W
programs
Single Audit required in current year -later
(federal award programs)
3
Results of Audit
Independent Auditor’s Report (pg 1 of ACFR)
Unmodified/clean opinions…fairly stated, in all material
respects…in conformity with accounting principles generally
accepted (GAAP) in the USA.
TDA (pg 1)
Unmodified/clean opinion
No compliance findings
Measures A and W
Unmodified/clean opinions
No compliance findings
4
3
4
240
1/27/2023
3
Results of Audit
Management’s Discussion and Analysis
(prepared by Finance Staff – pg 5 of ACFR)
Discusses significant activity for the fiscal year
Major Events Include
Implemented GASB 87, Leases - Restatement – Notes 1T and 10
Recorded receivables of $14.7m
Second tranche of ARPA Funding received - $6.1m
Orange Memorial Park Bonds – $65m
Pension – decreased $60.9m (!!) – but beware…
OPEB – decreased $6.2m
5
Results of Audit
Memorandum on Internal Control
Three possible categories for comments:
Material Weakness
Significant Deficiency
Other Matters
6
5
6
241
1/27/2023
4
Results of Audit
Memorandum on Internal Control
No material weaknesses noted
Other informational items
Current status of prior matters
7
Results of Audit
Required Communications
Changes in Accounting Policies
None, other than
Implementation of GASB 87, Leases
Implementation of GASB 97, Certain Component Unit Criteria….and
Financial Reporting for Internal Revenue Code Section 457 Deferred
Compensation Plans…
Other GASBs effective, but little to no impact
Unusual Transactions, Controversial or Emerging Areas
None
8
7
8
242
1/27/2023
5
Results of Audit
Required Communications (Continued)
Significant Accounting Estimates Include
Pension and OPEB Liabilities and Related Def Outflows/Inflows
Fair Value of Investments
Depreciation
Compensated Absences
Claims Liabilities
No difficulties encountered or disagreements with
management
No material adjustments
No uncorrected misstatements to report (deemed trivial)
9
Other Reports
Agreed Upon Procedures – recalculation of the
Gann Limit (Appropriations Limit)
City and District – no errors noted
10
9
10
243
1/27/2023
6
QUESTIONS?
11
“We are in the business to help our clients succeed”
11
244
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-105 Agenda Date:2/8/2023
Version:1 Item #:7a.
Resolution approving the Annual Comprehensive Financial Report and other related Miscellaneous reports for
Fiscal Year 2021-22
WHEREAS,the 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; and
WHEREAS,the City of South San Francisco publishes an Annual Comprehensive Financial Report
(ACFR),which includes its Basic Financial Statements as defined in Governmental Accounting Standards,as
well as Supplementary Information; and other related Miscellaneous report for Fiscal Year 2021-22;
WHEREAS,the City’s independent auditor opined that that the City’s financial statements present
fairly, in all material respects, the City’s financial position as of year ended June 30, 2022; and
WHEREAS,the auditor has as part of its most recently completed audit prepared a letter to the City
Council,also known as the Auditors’Required Communications Letter and Independent Auditors’
Memorandum on Internal Control, outlining the scope of the audit review and findings, if any; and
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of South San Francisco that
the City Council accepts the attached results of the attached ACFR and other related Miscellaneous reports.
* * * **
Attachments:
1.Annual Comprehensive Financial Report (ACFR)
2.Transportation Development Act, Article III Fund Program
3.San Mateo County Transportation Authority - Measure A Funds Financial Statements and Independent
Auditors’ Report
4.San Mateo County Transportation Authority - Measure W Funds Financial Statements and Independent
Auditors’ Report
5.Independent Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations Limit
Schedule
6.Auditors’ Required Communications Letter
7.Independent Auditors’ Memorandum on Internal Control
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ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2022
CITY OF SOUTH SAN FRANCISCO
CALIFORNIA
Attachment 1
246
247
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2022
Prepared by:
Department of Finance
248
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249
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................... i
Letter of Transmittal ......................................................................................................................................... v
Certificate of Achievement for Excellence in Financial Reporting ............................................................... xii
Organization Chart ......................................................................................................................................... xiii
City Council and Directory of City Officials ................................................................................................ xiv
FINANCIAL SECTION
Independent Auditor's Report ...................................................................................................................... 1
Management’s Discussion and Analysis ....................................................................................................... 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position .................................................................................................................. 29
Statement of Activities ...................................................................................................................... 30
Fund Financial Statements:
Major Governmental Funds:
Balance Sheet ................................................................................................................................ 36
Reconciliation of Governmental Fund Balances to Net Position of Governmental Activities .... 38
Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................... 40
Reconciliation of the Net Change in Fund Balances Total Governmental Funds with
the Statement of Activities ........................................................................................................ 42
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual –
Budgetary Basis:
General Fund ....................................................................................................................... 43
Low and Moderate Income Housing Assets ....................................................................... 44
i 250
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
FINANCIAL SECTION (Continued)
Major Proprietary Funds:
Statement of Net Position .............................................................................................................. 46
Statement of Revenues, Expenses, and Changes in Fund Net Position ........................................ 47
Statement of Cash Flows ............................................................................................................... 48
Fiduciary Funds:
Statement of Fiduciary Net Position ............................................................................................. 50
Statement of Changes in Fiduciary Net Position .......................................................................... 51
Notes to Basic Financial Statements ...................................................................................................... 53
Required Supplementary Information:
Schedule of Changes in Net Pension Liability and Related Ratios –
Miscellaneous Plan ............................................................................................................ 106
Schedule of Contributions – Miscellaneous Plan ........................................................................ 107
Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan ...................... 108
Schedule of Contributions – Safety Plan ..................................................................................... 109
Schedule of Changes in the Net OPEB Liability and Related Ratios ......................................... 110
Schedule of Contributions – Retiree Healthcare OPEB Plan ...................................................... 111
Notes to Schedule of Employer Contributions ............................................................................ 111
Supplementary Information:
General Fund:
Combining Balance Sheets ............................................................................................................. 116
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balances ..................................................................................................................... 117
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balance Budget and Actual - (Non GAAP Legal Basis) ........................................... 118
ii 251
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
FINANCIAL SECTION (Continued)
Non-major Governmental Funds:
Combining Balance Sheet ............................................................................................................... 124
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances ..................................................................................................................... 128
Budgeted Non-major Government Funds:
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balances – Budget and Actual ................................................................................... 132
Internal Service Funds:
Combining Statement of Net Position ............................................................................................ 138
Combining Statement of Revenues, Expenses and Changes in Fund Net Position ....................... 139
Combining Statement of Cash Flows ............................................................................................. 140
Custodial Funds:
Combining Statement of Net Position ............................................................................................ 142
Combining Statement of Changes in Net Position ......................................................................... 143
STATISTICAL SECTION
Net Position by Component – Last Ten Fiscal Years .................................................................... 147
Changes in Net Position – Last Ten Fiscal Years .......................................................................... 148
Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................. 152
Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ................................ 154
Assessed Value of Taxable Property – Last Ten Fiscal Years ...................................................... 156
Direct and Overlapping Governments – Property Tax Rates
Last Ten Fiscal Years ................................................................................................................ 157
Principal Property Taxpayers – Current Year and Nine Years Ago .............................................. 159
Property Tax Levies and Collections – Last Ten Fiscal Years ...................................................... 160
iii 252
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2022
Table of Contents
Page
STATISTICAL SECTION (Continued)
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................ 161
Computation of Direct and Overlapping Debt ............................................................................... 162
Computation of Legal Bonded Debt Margin ................................................................................. 163
Revenue Bond Coverage Sewer Rental Enterprise Fund – Last Ten Fiscal Years ....................... 164
Sewer Debt Service Coverage Sewer Rental Enterprise Fund – Last Seven Fiscal Years............ 165
Redevelopment Pledged Revenue Coverage – Last Nine Fiscal Years ......................................... 166
Demographic and Economic Statistics – Last Ten Fiscal Years ................................................... 167
Principal Employers – Current Year and Nine Years Ago ............................................................ 168
Full-Time Equivalent City Governmental Employees by Function – Last Ten Fiscal Years ....... 169
Operating Indicators by Function/Program – Last Eight Fiscal Years .......................................... 170
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ......................................... 171
Miscellaneous Information – Last Four Fiscal Years .................................................................... 172
iv 253
December 28, 2022
Honorable Mayor and Members
of the City Council
City of South San Francisco
South San Francisco, California
We are pleased to submit the Annual Comprehensive Financial Report (ACFR) for
the City of South San Francisco (the City) for the fiscal year (FY) ended June 30,
2022. The City of South San Francisco is required to publish a complete set of
financial statements presented in conformance with generally accepted accounting
principles (GAAP) and audited by an independent, certified public accounting firm.
This report is published to fulfill this requirement for the fiscal year ending June 30,
2022.
The report presents the finances of the City of South San Francisco. Management
assumes full responsibility for the completeness and fairness of the information
presented in this report. To the best of our knowledge and belief, the enclosed data
is accurate in all material respects and is reported in a manner designed to present
fairly the financial position and results of operations of the various funds of the City.
All disclosures necessary to enable the reader to gain an understanding of the
City’s financial activities have been included.
This report consists of management’s representations concerning the finances of
the City. To provide a reasonable basis for making these representations,
management established a comprehensive internal control framework designed to
both protect the City’s assets from loss, theft, or misuse, compiled sufficient
reliable information for the preparation of the City’s financial statements in
conformity with the Generally Accepted Accounting Principles (GAAP), and
complied with applicable laws and regulations.
CITY COUNCIL 2022
FLOR NICOLAS, MAYOR (DIST. 3)
MARK NAGALES, VICE MAYOR (DIST. 2)
MARK ADDIEGO, MEMBER (DIST. 1)
JAMES COLEMAN, MEMBER (DIST. 4)
EDDIE FLORES, MEMBER (DIST. 5)
MIKE FUTRELL, CITY MANAGER
v 254
The City contracted with Maze & Associates (Maze), a public accounting firm
licensed to perform local government audits in California, to complete the annual
audit. Maze concluded that the financial statements present fairly the respective
financial position of the government activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City, and the
respective changes in financial position, and where applicable, cash flows for the
year ended June 30, 2022, in accordance with GAAP. This is a favorable
conclusion and is commonly referred to as an unmodified opinion.
The independent audit of the City’s financial statements is part of a broader,
federally mandated “Single Audit” designed to meet the needs of federal grantor
agencies. The standards governing Single Audit engagements require the
independent auditor to report not only on the fair presentation of the City’s financial
statements, but also on the City’s internal controls and compliance with legal
requirements, with special emphasis on internal controls and legal requirements
involving the administration of federal awards. Maze will issue the Single Audit in
March of 2023.
GAAP requires that management provide a narrative introduction, overview, and
analysis to accompany the basic financial statement in the form of the
Management’s Discussion & Analysis (MD&A). This letter of transmittal is
designed to complement the MD&A and should be read in conjunction with it. The
MD&A is located immediately following the report of the independent auditor in the
financial section.
CITY PROFILE
The City of South San Francisco proudly remains the Industrial City, a reflection of
its steel mill and shipbuilding past, redefined to reflect the innovative,
entrepreneurial, and industrious spirit which has made South San Francisco the
Biotech Capital of the World, with over 250 active biotech companies and growing.
The City of South San Francisco encompasses approximately 9.5 square miles
and has a population of 66,105. The City employs approximately 500 full-time
regular employees and is a full-service city which includes public safety (police,
fire and paramedics), libraries, parks, cultural and recreational activities, senior
citizen services, public works, public improvements, engineering, planning,
building regulation, economic development, drainage, street lighting, and general
administrative services. Sewer service, downtown parking operations, and storm
water management are accounted for in the City’s enterprise funds. The
Conference Center Authority is included in the financial statements by discrete
presentation – that is, the Authority’s financial data is reported in a column
separate from the financial data of the City. Water and solid waste services are
provided by private entities.
vi 255
South San Francisco was incorporated and became a general law city of the State
of California on September 19, 1908. The form of government is the Council-
Manager plan. Each Councilmember serves a term of four years, with a rotating
Mayor chosen by majority vote of the Council, for a term of one year. The Council
appoints the City Manager and City Attorney. The City Manager is responsible for
carrying out the policies and ordinances of the City Council, for overseeing the
day-to-day operations of the City and appointing department directors.
The offices of City Clerk and City Treasurer are elected and will remain at-large.
The incumbent City Clerk, Rosa Govea Acosta, and City Treasurer, Frank Risso,
were elected for another term in the November 2022 election.
This report includes all financial activities of the City of South San Francisco,
including financial information for the City, as the primary government, and for its
component units, for which the City is considered financially accountable. The
blended component units include the City of South San Francisco Capital
Improvements Financing Authority, the Parking Authority of the City of South San
Francisco, and the City of South San Francisco Public Facilities Financing
Authority. The South San Francisco Conference Center is a discretely presented
component unit and is included because of the significance of its governing,
operational, and/or financial relationships with the City. The Successor Agency that
was created due to the Redevelopment Agency dissolution is also included in this
report.
ASSESSING THE CITY’S ECONOMIC CONDITION
The City of South San Francisco continued to demonstrate its resilience and
strength during Fiscal Year (FY) 2021-22 following a particularly challenging prior
year in which the COVID-19 pandemic took hold and impacted all sectors of
society and the economy at the national, state and local levels. Restrictions on
travel continued to be loosened as FY2021-22 began, bringing about a substantial
recovery in the year in Transient Occupancy Tax (TOT) to above 70% of pre-
pandemic levels, up from 39% in the prior year, as well as Commercial Parking
Tax collected from San Francisco airport and the surrounding hotels. The upward
trend in TOT went hand-in-hand with a strong recovery in sales tax revenue as
shopping and spending patterns also continued to return to normal. This recovery
and various revenue streams enabled the City to re-open and expand classes and
services to residents and subsequently unfreeze employee vacancies, thereby
driving an increase in expenditures.
vii 256
The resilience of local businesses and residents was bolstered by assistance
programs provided by the City during the COVID-19 pandemic. These continued
into FY2021-22, with new ones beginning during the year, and included the
Guaranteed Basic Income pilot program (utilizing American Rescue Plan Act
funding) whereby 160 City residents received $500 per month for a year, the
Rental Assistance program for residential tenants facing pandemic-related
economic hardship, the opening of the Economic Advancement Center on Grand
Avenue to assist individuals with job placement, training and business start-up,
and creation of the Business Façade and Tenant Improvement program to help
local businesses improve storefronts and American Disabilities Act (ADA)
compliance.
Development within the City continued apace during FY2021-22 with multiple new
housing units coming online and new developments added to the pipeline.
Significant work continued through the year with the biotech development at Oyster
Point, and the Southline project to develop a 28-acre site for office space and
biotech research and development on the City’s southern border gained
considerable traction (target completion in 2024).
The City further demonstrated its strong emergence from the pandemic through its
ambitious Capital Improvement Plan (CIP) with twenty new projects budgeted in
the fiscal year alone including the $78 million bond-funded portion of the
Community Civic Campus construction project, the $24 million bond-funded street
rehabilitation projects and the $2 million bond-funded solar roof at the City’s
Corporation Yard. A capital project to replace the City pool complex was also
included in the CIP plan, the outreach and design of which began during the year.
The bonds to fund the new pool complex were issued in June 2022 in readiness
for the forthcoming construction phase. Also, during FY2021-22, the new Police
Station and new Caltrain Station were both opened and became fully operational,
and work on the Colma Creek Storm Water capture project and the Sports Fields,
both located at Orange Memorial Park, neared completion by year end.
In June 2022, the City issued its third tranche of lease revenue bonds, taking
advantage of a very favorable interest rate environment. The bond proceeds will
fund multiple CIP projects, including the aforementioned city pool complex (Aquatic
Center), and replacement of the sports fields, playground and Colma Creek
bridges at Orange Memorial Park.
viii 257
The General Fund is the main fund of the City, accounting for principal revenues
including taxes, licenses and permits, charges for services, grants and interest
income, as well as expenditures related to delivery of public services by City
departments such as Police, Fire, Public Works, Parks and Recreation, Library and
Administrative Services. Performance of this fund is viewed as the main barometer
of the financial health of the City. Compared to the prior year, FY 2021-22 General
Fund revenues (excluding transfers in from other funds and special items)
increased by $17.4 million, or 14.1%. This significant increase is mainly driven by
greater TOT, sales tax, commercial parking tax and charges for service revenues,
all as a result of the City emerging and recovering from the COVID-19 pandemic.
In November 2015, voters in the City passed Measure W, which increased the
sales tax rate within the City by 0.50%. The tax is deposited into the City's General
Fund and will be used to pay for City services. This tax revenue is primarily used
to pay the debt on bonds or other financings to accelerate projects. In February
2020, the City issued $43.9 million of lease revenue bonds to finance the design
and construction of a new Police facility which became fully operational in January
2022. In June 2021, the City issued $86.4 million in lease revenue bonds for the
construction of a new Civic Center Campus, installation of a solar roof at the City’s
Corporation Yard and funding of the City’s Road Rehabilitation program.
Furthermore, in June 2022, the City issued $65.4 million in lease revenue bonds
to fund the construction of a new Aquatic Center and ballfields at Orange Memorial
Park, and the replacement of a playground and two bridges over Colma Creek,
also at Orange Memorial Park.
MAJOR CITY SPONSORED INITIATIVES
The City completed the following major construction projects in FY 2021-22,
improving the City’s infrastructure, facilities and enhanced business processes
with contemporary technology:
•Pavement Management Program – 2020 Surface Seal & Rehab projects
•Pump station #2 Upgrade
•Linden Avenue Street Improvements – Aspen to Miller
•Signalize Commercial and Spruce Intersection
•WQCP Plant-wide Industrial re-coat project
•Orange Memorial Park Storm Water Capture project
•New Police Operations Center
•Caltrain Station
ix 258
FINANCIAL INFORMATION
The City Council is required to adopt a final budget by passing a budget resolution
no later than June 30th, following a public hearing process. This annual budget
serves as the foundation for the City’s financial planning and control. The budget
is prepared by fund, function and department. The legal level of budgetary control
is at the fund level. The City Manager is authorized to transfer budgeted amounts
between departments and line items within any fund. Any revisions that alter the
total expenditures of any fund must be approved by the City Council. Transfers
between funds must be approved by the City Council. At the end of the fiscal year,
encumbered appropriations are carried forward and become part of the following
year’s budget while appropriations that have not been encumbered lapse, unless
otherwise authorized by the City Council and the City Manager.
In developing and appraising the City’s accounting system, consideration is given
to the adequacy of internal accounting controls. Internal accounting controls are
designed to provide reasonable but not absolute assurance regarding: (1) the
safeguarding of assets against loss from unauthorized use or disposition; (2) the
reliability of financial records for preparing financial statements and maintaining
accountability for assets; and (3) transactions being properly executed in
accordance with management’s authorization.
The concept of reasonable assurance recognizes that: (1) the cost of a control
should not exceed the benefits likely to be derived; and (2) the evaluation of costs
and benefits requires estimates and judgments by management.
Basic characteristics of sound internal accounting control include segregation of
accounting duties, approval of accounting transactions, and regular reconciliation
of detail and control records.
All internal control evaluations occur within this framework. We believe that the
City’s internal accounting controls adequately safeguard assets and provide
reasonable assurances of proper recording of financial transactions.
In February 2020, S&P Global Ratings assigned an issuer credit rating of triple A
(“AAA”) to the City. AAA is the highest rating possible and is important as higher
ratings generally results in lower borrowing costs and the City was able to benefit
from this in its FY 2020-21 bond issuance. S&P re-affirmed this rating prior to the
FY 2021-22 bond issuance. The AAA rating is a good indicator of the City's strong
financial position, solid executive management, fiscally sound policies and
practices, and responsible budgetary performance.
The City’s Reserve Policy is aligned with the Government Finance Officers
Association (GFOA) best practices recommendation for reserves, setting aside 15-
20 percent of operating revenues.
x 259
OTHER INFORMATION
Award
The City’s ACFR for the fiscal year ended June 30, 2021, received a Certificate of
Achievement for Excellence in Financial Reporting from the Government Finance
Officers Association. The award signified the report’s attainment of easily readable
and efficiently organized content and satisfaction of generally accepted accounting
principles and legal requirements. The award is valid for a period of one year only.
However, the City believes that this current report continues to conform to program
eligibility requirements.
Acknowledgments
The preparation of the ACFR was made possible by the dedicated services of the
entire staff of the Finance Department and our auditors. Each member of the
department has our sincere appreciation for the contributions made in the
preparation of this report. Special thanks are extended to Finance Services
Managers, Paul Harris and Jennifer Clemente, and Senior Accountant Steven Lew
for their commitment and diligence in the preparation of this document.
Furthermore, we would like to thank the City Council for its leadership and
commitment to ensuring the long-term fiscal health of the City.
Respectfully submitted,
____________________________ __________________________
Karen Chang Mike Futrell
Director of Finance City Manager
obo
xi
I, DocuSigned by:
~CB~
260
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of South San Francisco
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
xii 261
Citizens of South San Francisco
City Council
City Clerk
Rosa Govea Acosta
City Treasurer
Frank Risso
City Manager
Mike Futrell
City Attorney
Sky Woodruff
Assistant to the City
Manager
Christina Fernandez
Administrative Departments Operating Departments
Fire Chief
Jess Magallanes
Public Works Director
Eunejune Kim
Library Director
Valerie Sommer
Econ. & Comm. Development
Director
Nell Selander
Chief of Police
Scott Campbell
Human Resources Director
Leah Lockhart
Finance Director
Karen Chang
Assistant City Manager/Chief
Sustainability Officer
Sharon Ranals
Communications Director
Leslie Arroyo
Mark Nagales (District 2), Mayor
Buenaflor Nicolas (AT LARGE), Vice Mayor
Mark Addiego (AT LARGE), Member
James Coleman (District 4), Member
Eddie Flores (AT LARGE), Member
Information Technology
Director
Tony Barrera
Capital Projects Director
Jacob Gilchrist
Dep. Capital Projects Director
Philip Vitale Parks and Recreation
Director
Greg Mediati
xiii 262
City Council & Directory of Officials*
City Council
Mark Nagales (District 2) Mayor
Buenaflor Nicolas (AT LARGE) Vice Mayor
Mark Addiego (AT LARGE) Councilmember
James Coleman (District 4) Councilmember
Eddie Flores (AT LARGE) Councilmember
Elected Officials
Rosa Govea Acosta City Clerk
Frank Risso City Treasurer
Appointed Officials
Mike Futrell City Manager
Sharon Ranals Assistant City Manager
Karen Chang Finance Director
Leslie Arroyo Communications Director
Scott Campbell Chief of Police
Tony Barrera Information Technology Director
Jacob Gilchrist Capital Projects Director
Nell Selander Deputy Economic & Community Development Director
Leah Lockhart Human Resources Director
Jess Magallanes Fire Chief
Eunejune Kim Public Works Director
Valerie Sommer Library Director
Greg Mediati Parks & Recreation Director
Budget Subcommittee
Mark Addiego
Buenaflor Nicolas
*As of October 31, 2022
xiv 263
INDEPENDENT AUDITOR’S REPORT
Honorable Members of the City Council
City of South San Francisco, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of South San
Francisco (City), California, as of and for the year ended June 30, 2022, and the related notes to the
financial statements, which collectively comprise the City’s basic financial statements as listed in the
Table of Contents.
We did not audit the discretely presented component unit financial statements of the South San Francisco
Conference Center Authority (Authority), which represents 0.64%, 0.82%, and 1.08%, respectively, of the
assets, net position, and revenue of the primary government. Those financial statements were audited by
other auditors, whose report thereon has been furnished to us and our opinion, insofar as it relates to the
amounts included for the Authority, is based solely on the report of the other auditors.
In our opinion, based on our audit and report of the other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the governmental activities, the
business-type activities, the discretely presented component unit, each major fund, and the aggregate
remaining fund information of the City as of June 30, 2022, and the respective changes in financial position
and, where applicable, cash flows thereof and the respective budgetary comparisons listed in the Table of
Contents as part of the basic financial statements for the year 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 Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirement 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 these 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 the financial statements that are free from material misstatement, whether due to fraud or
error.
1 264
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 City’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.
Auditor’s 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 auditor’s report that
includes our opinion. 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, individually or in the aggregate,
they could reasonably be expected to 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 City’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 City’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.
Change in Accounting Principles
Management adopted the provisions of Governmental Accounting Standards Board Statement No. 87,
Leases, which became effective during the year ended June 30, 2022 and had material effects on the
financial statements as discussed in Note 1T to the financial statements.
The emphasis of this matter does not constitute a modification to our opinions.
2 265
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis and other Required Supplementary Information as listed in 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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in
the Table of Contents, 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 Information
Management is responsible for the other information included in the annual report. The other information
comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not
include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial
statements do not cover the other information, and we do not express an opinion or any form of assurance
thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and the
basic financial statements, or the other information otherwise appears to be materially misstated. If, based
on the work performed, we conclude that an uncorrected material misstatement of the other information
exists, we are required to describe it in our report.
3 266
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 27,
2022, on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is 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 City’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 the
City’s internal control over financial reporting and compliance.
Pleasant Hill, California
December 27, 2022
4 267
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
The Management’s Discussion and Analysis (MD&A) provides an overview of City of South San
Francisco’s financial activities and fiscal performance for the year ended June 30, 2022. Please read
this in conjunction with the accompanying Transmittal Letter and Basic Financial Statements to
obtain a complete picture of the City’s financial condition.
FINANCIAL HIGHLIGHTS
Total Net Position for Governmental activities in FY 2021-22 increased by $64.7 million, or
19.5%, from $332.1 million in the prior year, to $396.8 million. The increase is primarily due to
further investment in City assets through bond issuance, an increase in cash and investments due
to stronger revenues in the year, as well as a greater restricted cash balance due to the 2022A
bond issuance prior to year-end. The growth in assets of $146.5 million is partially offset by a
$66.3 million increase in long-term debt liabilities but this offset is reduced by lower “other
liabilities” ($47.6 million lower than prior year) due to a significant drop in the net pension
liability at year-end.
Total Net Position for Business-Type activities in FY 2021-22 increased by $7.1 million, or
5.4%, from $130.8 million in the prior year, to $137.9 million. The growth in Net Position is
due to a $10 million increase in capital assets due to construction work underway at the City’s
Water Quality Control Plant (WQCP), lower accounts payable at year-end and a drop in the net
pension liability. This is partially offset by lower cash and investments, and accounts receivable
balances at year-end.
City-wide Net Pension Liability to CalPERS for FY 2021-22 decreased by $60.9 million, or
29.7%, from $205.3 million in the prior year to $144.4 million. This significant decrease in
liability was driven by revised actuarial valuations from CalPERS taking into account member
contributions and strong investment earnings in FY2020-21.
City-wide cash and investments at year end increased $5.5 million, or 2.1%, from $259.3 million
in the prior year to $264.8 million. This reflects the underlying strength in the local economy as
the City continued to rebound from the impacts of the COVID-19 pandemic.
Revenues from Governmental Activities (excluding transfers and special items) increased by
$37.7 million, or 22.7%, to $203.9 million in FY 2021-22 from $166.2 million in the prior year.
Revenues from Business-Type Activities (excluding transfers and special items) partially offset
this with a decrease of $5.4 million, or 13.3%, to $35.2 million in FY2021-22 from $40.6 million
in the prior year.
Expenses from Governmental Activities (excluding transfers and special items) increased by
$2.4 million, or 1.8%, to $134.8 million in FY2021-22 from $132.4 million in the prior year due
to a greater amount of interest paid on debt (due to additional bonds having been issued in the
prior year). Expenses from Business-Type Activities decreased slightly by $0.2 million, or 0.7%,
to $28.7 million compared to $28.9 million in the prior year.
5 268
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Property tax revenues categorized under Governmental Activities dropped in FY 2021-22 by
$1.6 million, or 3.8%, to $40 million from $41.6 million in the prior year. This was primarily
due to a reduction in the amount of tax received from the Educational Revenue Augmentation
Fund (ERAF) which has historically been a volatile revenue source related to the split of basic
and non-basic aid schools in the county of San Mateo.
Sales tax increased by $5.1 million, or 15.5% to $38.1 million in FY 2021-22 from $33.0 million
in the prior year. This represents the return to normal spending patterns for the local population
as the City continued its recovery during the FY 2021-22 from the COVID-19 pandemic.
Transient Occupancy Tax (“TOT”) was the most dramatically impacted revenue category during
the height of the pandemic due to the restrictions on travel and shelter-in-place orders. By the
beginning of FY 2021-22, these had largely been removed allowing this revenue category to
rebound significantly. TOT revenue almost doubled to $12.1 million, an increase of $5.4 million,
or 80.6%, from $6.7 million in the prior year. Total TOT receipts for the year rose to
approximately 70% of pre-pandemic levels indicating there is still some way to go in the
recovery.
Revenue from Property Taxes in Lieu, otherwise known as the California Vehicle Licensing Fee
(VLF), more than doubled to $12.0 million in FY 2021-22 from $4.9 million in the prior year,
an increase of $7.1 million or 144.9%. This is a volatile revenue source that is difficult to predict
and the increase was partially due to a change in the ratio of basic aid to non-basic aid school
districts in San Mateo County which affects the availability of VLF. Part of the variance is due
to the City being allocated $3.7 million in additional VLF in FY2021-22 as a result of a county-
wide reimbursement from the state for a VLF shortfall in the prior year.
Total revenues from the City’s Sewer Enterprise decreased $5.4 million, or 16.0% to $28.4
million from $33.8 million in the prior year. This was largely due to lower sewer charge
revenues which, for FY2021-22, are based on the 2020 calendar year. Commercial water usage
dropped considerably during 2020 as workers remained at home during the pandemic and
reduced water usage means less sewer effluent volume on which commercial businesses are
charged. Water conservation drives by many businesses further led to reduced overall water
usage and resulting sewer effluent volumes. The City’s Parking Enterprise experienced a $0.2
million, or 30.0%, increase in revenues to $1.0 million in FY2021-22 compared to $0.8 million
in the prior year due to a greater level of parking activity as shoppers returned to the City
following removal of pandemic-related restrictions.
6 269
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
This Annual Comprehensive Financial Report (ACFR) 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;
5) Other Supplementary Information including combining statements for non-major
governmental funds, internal service funds, custodial funds and other budgetary information;
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 of the City’s programs. The Statement of Activities provides a detailed explanation of the
change in net position 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
distinct activities of the City.
The Fund Financial Statements report the City’s operations in more detail than the government-wide
statements. The Governmental Fund Financial Statements focus primarily on the short-term
activities of the City’s General Fund and other Major Funds and measure only current revenues,
expenditures, and fund balances; they exclude capital assets, long-term debt and other long-term
amounts. The Proprietary Fund Financial Statements focus on the Business-Type “enterprises” of
the City, i.e. activities that are accounted for in a similar way to private sector organizations using
the full accrual basis, thereby including both short-term and long-term elements.
7 270
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
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.
The Fiduciary Fund Financial 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:
Governmental activities - All of the City’s basic services are considered to be governmental
activities, including General Government, Fire, 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 and South San Francisco Public Facilities Financing
Authority, as the City Council also governs these entities.
Business-Type Activities - All the City’s enterprise activities are reported here, including
Wastewater treatment (or Sewer), 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.
City-wide financial statements are prepared on the accrual basis, which means they measure the
flow of all economic resources of the City as a whole and account for revenues when due and
expenses when incurred.
8 271
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Fund Financial Statements
The Fund Financial Statements provide detailed information about each of the City’s most
significant funds, called Major Funds. 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 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 means
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 and
include all their assets, liabilities and deferred outflows/inflows of resources, 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 city-wide financial statements and any related profits or losses
are returned to the activities which created them, along with any residual net position 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 Fund Financial 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
The following analyses focus on the net position and changes in the City’s Governmental Activities
(Tables 1 through 3, and Chart 1) and Business-Type Activities (Tables 4 and 5), which are
presented in the city-wide Statement of Net Position and Statement of Activities. The comparative
results for FY 2021-22 are presented versus FY 2020-21.
9 272
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Governmental Activities
Net position may serve over time as a useful indicator of the City’s financial condition. Table 1
below shows that total assets and deferred outflows of resources exceed the total liabilities and
deferred inflows of resources as of June 30, 2022 for Governmental Activities:
Governmental Net Position
Table 1
Governmental Net Position at June 30
(In Millions)
As shown in table 1, the total net position for Governmental Activities increased by $64.7 million
in FY 2021-22 compared to the prior year, reflecting significant increases in assets. Cash and
investments increased by $10.7 million. Other assets, which includes receivables, properties held
for redevelopment, and restricted cash and investments, increased by $53.2 million due to proceeds
received from issuance of an additional bond for construction of a new Aquatic Center and various
other CIP projects at Orange Memorial Park. Capital assets increased by $82.6 million due to a large
increase in Construction-In-Progress related to the new Civic Center Campus and multiple other
Capital Improvement Plan (CIP) projects. Pursuant to GASB 75 and GASB 68 requirements,
respectively, the City, as in prior years, recognized the Net OPEB liability of $52.3 million and Net
Pension Liability of $129.9 million attributable to Governmental Activities.
Increase / (Decrease)
2022 2021 Amount %
Cash and investments 239.8$ 229.1$ 10.7$ 4.7%
Other assets 201.9 148.7 53.2 35.8%
Capital assets 465.7 383.1 82.6 21.6%
Total assets 907.4 760.9 146.5 19.3%
Total outflows of resources 28.8 31.2 (2.4) (7.7%)
Total outflow of resources 28.8 31.2 (2.4) (7.7%)
Long‐term debt outstanding 223.8 157.5 66.3 42.1%
Other liabilities 253.4 301.0 (47.6) (15.8%)
Total liabilities 477.2 458.5 18.7 4.1%
Deferred inflows of resources 62.1 1.6 60.5 3781.3%
Total deferred inflow of resources 62.1 1.6 60.5 3781.3%
Net position:
Net investment in capital assets 452.7 316.1 136.6 43.2%
Restricted 139.0 160.2 (21.2) (13.2%)
Unrestricted (194.9) (144.2) (50.7) 35.2%
Total net position 396.8$ 332.1$ 64.7$ 19.5%
10 273
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
The following table shows the changes in net position for Governmental Activities:
Table 2
Expense and Program Revenue Comparison in Governmental Activities
(In Millions)
Increase / (Decrease)
2022 2021 Amount %
Revenues
Program revenues:
Charges for services 66.7$ 44.9$ 21.8$ 48.6%
Operating grants and contributions 10.9 8.0 2.9 36.3%
Capital grants and contributions 3.3 5.5 (2.2) (40.0%)
Total program revenues 80.9$ 58.4$ 22.5$ 38.5%
General revenues:
Taxes:
Property taxes 40.0$ 41.6$ (1.6)$ (3.8%)
Sales taxes 38.1 33.0 5.1 15.5%
Transient occupancy taxes 12.1 6.7 5.4 80.6%
Other taxes 11.5 9.1 2.4 26.4%
Property taxes in l ieu 12.0 4.9 7.1 144.9%
Investment earnings (6.7) 0.9 (7.6) (844.4%)
Miscellaneous 16.0 11.6 4.4 37.9%
Total general revenues 123.0$ 107.8$ 15.2$ 14.1%
Total revenues 203.9$ 166.2$ 37.7$ 22.7%
Expenses
General government 20.8$ 19.6$ 1.2$ 6.1%
Fire department 28.5 34.5 (6.0) (17.4%)
Police department 35.7 33.4 2.3 6.9%
Public Works 7.5 7.6 (0.1) (1.3%)
Parks and Recreation 19.5 17.1 2.4 14.0%
Library 6.1 6.3 (0.2) (3.2%)
Economic and Community Development 12.0 11.7 0.3 2.6%
Interest on long‐term debt 4.7 2.2 2.5 113.6%
Total expenses 134.8$ 132.4$ 2.4$ 1.8%
Excess / (deficiency) before transfers 69.1$ 33.8$ 35.3$ 104.4%
Special Item (3.0) (1.4) (1.6) 114.3%
Transfers (1.4) (5.0) 3.6 (72.0%)
Change in net position 64.7 27.4 37.3 136.1%
Net position ‐ beginning 332.1 304.7 27.4 9.0%
Net position ‐ ending 396.8$ 332.1$ 64.7$ 19.5%
11 274
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
As shown in table 2, total Governmental revenues (excluding transfers and special items) increased
by $37.7 million, or 22.7%, compared to the prior year. A significant increase in Charges for
Services specifically contributed to the greater revenue – this category accounted for $21.8 million
of the increase and largely consists of impact fees such as the Park Land Acquisition Fee, the Park
Construction Fee, the East of 101 Traffic Impact Fee and the Childcare Impact Fee. These are fees
paid by developers on new development projects within the City and revenue levels can vary
depending on the timing of such projects. There was also an increase in revenue, accounted for in
Charges for Services, from facility rentals, and childcare and aquatic programs offered by the City
during the year mainly due to the City’s recovery from the COVID-19 pandemic. The recovery also
gave rise to a $5.4 million increase in TOT and $5.1 million increase in Sales Tax as travel
restrictions were removed, hotel occupancy rates increased and consumer spending patterns
normalized. An increase in revenue was also seen in Property taxes in lieu ($7.1 million), otherwise
known as the California Vehicle Licensing Fee (VLF) due to a change in the ratio of basic aid to
non-basic aid school districts in San Mateo County which affects the availability of VLF, and a $3.7
million allocation from the state (distributed by the County) related to a shortfall in VLF in FY2020-
21. Investment earnings fell by $7.6 million to -$6.7 million, compared to the prior year, due to a
downward trend in the stock and bond markets brought about rising inflation and subsequent rises
in interest rates. The annual mark-to-market adjustment required by Governmental Accounting
Standards Board (GASB) accounting standard #31 results in the recognition of this temporary
change in value of the City’s investments.
Chart 1 shows the distribution of revenues from Governmental Activities by category.
Chart 1
Revenues by Source - Governmental Activities FY 2021-22
12 275
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Governmental program expenses increased by $2.4 million, or 1.8%, in comparison to the prior year.
Increases were seen in most departments partially due to higher salary and benefit costs as positions
were unfrozen during the year but also due to increased spending on operational supplies in response
to expanded public services provided as the City continued to recover from the pandemic. Interest
on long-term debt increased to $4.7 million, from $2.2 million in the prior year, due to repayments
beginning on the 2021A bonds which were issued to pay for construction of the new Civic Center
Campus.
Table 3 illustrates the difference between program revenues and program expenses. Program
revenues consist of capital and operating grants and contributions, and fees for services. General
City revenues, such as property taxes, sales taxes, transient occupancy taxes, licenses and permits,
and investment earnings, cover the shortfall between program revenues and program expenses.
Table 3
Net (Expense) / Revenue from Services
Governmental Activities
(In Millions)
In FY 2021-22, the net expense for governmental activities decreased by $20.1 million from $74.0
million to $53.9 million, due to a $2.4 million increase in Governmental program expenses, as
previously discussed, and a $22.5 million increase in program revenues primarily in charges for
services which includes developer impact fees.
Increase / (Decrease)
2022 2021 Amount %
General government (11.2)$ (9.8)$ (1.4)$ 14.3%
Fire department (20.7) (28.3) 7.6 (26.9%)
Police department (32.0) (31.0) (1.0) 3.2%
Public works department 17.3 21.4 (4.1) (19.2%)
Recreation and community services (15.9) (15.3) (0.6) 3.9%
Library (4.4) (2.0) (2.4) 120.0%
Economic and community development 17.7 (6.8) 24.5 (360.3%)
Interest on long‐term debt (4.7) (2.2) (2.5) 113.6%
Total (53.9)$ (74.0)$ 20.1$ (27.2%)
13 276
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Business-Type Activities
Table 4 shows that total assets and deferred outflows of resources exceed the total liabilities and
deferred inflows of resources as of June 30, 2022 for Business-Type Activities:
Table 4
Business-type Net Position at June 30 (in Millions)
The total net position for Business-Type Activities increased by $7.1 million, or 5.4%, compared to
the prior year. Total assets increased slightly by $1.6 million, or 0.7%, reflecting increases of capital
assets related primarily to construction in the Water Quality Control Plant (WQCP) Wet Weather
and Digester Improvements project, the rehabilitation of the WQCP secondary clarifiers and the
Orange Memorial Park Stormwater capture project. This was offset somewhat by lower cash
balances due to reduced sewer charge revenues as previously discussed, and a lower receivables
balance. Total liabilities, on the other hand, decreased by $10.7 million due to a lower accounts
payable balance at year end and a $6.1 million lower net pension liability due to substantial gains
made during the measurement period. Similar to Governmental Activities and pursuant to GASB
75 and GASB 68 requirements, respectively, the City, as in prior years, recognized the Net OPEB
liability of $5.8 million and Net Pension Liability of $14.4 million attributable to Business-Type
Activities.
Increase / (Decrease)
2022 2021 Amount %
Cash and Investments 25.0$ 30.2$ (5.2)$ (17.2%)
Other assets 5.1 8.3 (3.2) (38.6%)
Capital assets 196.4 186.4 10.0 5.4%
Total assets 226.5 224.9 1.6 0.7%
Deferred outflows related to pension/OPEB 3.2 3.4 (0.2) (5.9%)
Total Deferred outflow of resources 3.2 3.4 (0.2) (5.9%)
Long‐term liabilities outstanding 57.5 57.6 (0.1) (0.2%)
Other liabilities 29.1 39.7 (10.6) (26.7%)
Total liabilities 86.6 97.3 (10.7) (11.0%)
Deferred inflows related to pension/OPEB 5.3 0.2 5.1 2550.0%
Total deferred inflow of resources 5.3 0.2 5.1 2550.0%
Net position:
Net investment in capital assets 133.6 123.6 10.0 8.1%
Restricted 0.0 0.0 0.0 0.0%
Unrestricted 4.3 7.2 (2.9) 100.0%
Total net position 137.9$ 130.8$ 7.1$ 5.4%
14 277
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Table 5 below shows the changes in net position for Business-Type Activities:
Table 5
Change in Business-Type Activities Net Position
(In Millions)
Expenses from Business-Type Activities in FY2021-22 decreased slightly by $0.2 million to $28.7
million while total revenues (program and general revenues combined) also decreased, more
significantly, by $6.3 million to $34.4 million. The total change in net position was an increase of
$7.1 million after transfers compared to the $16.8 million increase in net position in the prior year.
Despite lower revenues in FY2021-22 and a negative mark to market in investment earnings,
control of expenses and reduced transfers out to other funds helped to ensure an increase in net
position, albeit a lower increase than in the prior year.
Increase / (Decrease)
2022 2021 Amount %
Expenses
Sewer Enterprise 26.2$ 26.7$ (0.5)$ (1.9%)
Parking District 1.2 1.3 (0.1) (7.7%)
Storm Water 1.3 0.9 0.4 44.4%
Total expenses 28.7 28.9 (0.2) (0.7%)
Revenues
Program Revenues
Charges for Services 24.2 25.8 (1.6) (6.2%)
Operating and Capital grants and contributions 11.0 14.8 (3.8) (25.7%)
Total program revenues 35.2 40.6 (5.4) (13.3%)
General revenues
Investment earnings (0.8) 0.1 (0.9) (1700.0%)
Total general revenues (0.8) 0.1 (0.9) (1700.0%)
Excess (deficiency) before transfers 5.7 11.8 (6.1) (51.5%)
Transfers 1.4 5.0 (3.6) (72.0%)
Change in net position 7.1 16.8 (9.7) (57.6%)
Net position ‐ beginning 130.8 114.0 16.8 14.7%
Net position ‐ ending 137.9$ 130.8$ 7.1$ 5.5%
15 278
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
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 condition.
Unrestricted fund balance is a major indicator of designated and uncommitted resources available
for spending in future fiscal years.
At June 30, 2022, the City’s Governmental Funds reported combined fund balances of $343.7
million, an increase of $33.6 million, or 10.8%, compared to the prior year. This was primarily due
to the creation of new governmental funds for the capital improvement projects at Orange Memorial
Park funded by the series 2022A bond issuance. The General Fund ending fund balance, which
includes Measure W, was $76.6 million, reflecting an increase of $0.9 million, or 1.2%, over the
prior year primarily due to stronger revenues in most major revenue categories.
Total Governmental Fund revenues (excluding transfers and special items) increased by $35.6
million, or 21.4%, from $166.2 million to $201.8 million, with increases in all categories except
interest and rentals, licenses and permits and other revenues. Property tax, sales tax, TOT and
intergovernmental revenues all saw increases of at least $5 million in each category with charges
for services rising by $22.6 million mainly due to greater impact fee receipts from various
development projects in progress throughout the City.
Total Governmental Fund expenditures (excluding transfers and special items) increased by $30.2
million, or 14.7%, from $206.1 million in the prior year to $236.3 million in FY 2021-22, primarily
due to increased project expenditures for the new Civic Center Campus, partially offset by reduced
expenditures on the Police station which was completed during the year. In addition, most
departments saw increases in expenditures as public services expanded during the year as the
recovery from the pandemic continued and vacant positions were unfrozen. Debt service increased
by $6.9 million due to repayments beginning for the 2021A bond issuance. Capital outlay expenses
of $5.5 million were also incurred related to the purchase of land for the new fire station at 71
Camaritas Avenue.
Comparison of General Fund 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 expenditures
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 (including Measure W). Changes between the adopted and final
budgets are shown and explained in table 6:
16 279
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Comparison of General Fund (excluding transfers) Final Budgets to Original Adopted
Budget (in Thousands)
Table 6
Original Final Pct Discussion:
Revenues Budget Budget Change Change (Items of more than 5% and $100,000 variance)
Property taxes 41,075$ 41,075$ -$
Sales taxes 32,239 32,989 750 2.3%
Transient occupancy taxes 7,085 8,585 1,500 21.2%
Travel industry continued to recover strongly from the
COVID-19 pandemic leading to higher hotel occupancy
rates and upward budget revision
Other taxes 3,615 3,615 -
Franchise Fee 4,600 4,600 -
Intergovernmental 2,325 5,820 3,495 150.3%
Reflects multiple federal, state and local grants applied for
during the year, adjustments for General Plan update, fire
rescue vehicles, Colma Creek project work, the Economic
Advancement Center and various other projects
Interest and rentals 3,565 3,505 (60) -1.7%
Licenses and permits 16,453 16,453 -
Charges for services 9,287 7,848 (1,439) -15.5%
Lingering effects of the COVID-19 pandemic on child care,
classes and facility rentals leading to a decision to revise
the budget downwards during the mid-year review
Fines and forfeitures 677 677 -
Other 233 394 161 69.1%Multiple small donations received during the year leading
to upward budget revision
Total 121,154$ 125,561$ 4,407$ 3.6%
Original Final Pct Discussion:
Expenditures Budget Budget Change Change (Items of more than 5% and $100,000 variance)
City Council 292$ 292$ -$
City Clerk 1,152 1,231 79 6.9%
City Treasurer 160 160 -
City Attorney 910 910 -
City Manager 3,608 4,512 904 25.1%Roll over of purchase orders related to General Plan
update, incentive pay adjustment
Finance 3,808 4,386 578 15.2%
Accounts for various purchase orders carried over from the
previous FY, e.g. ERP replacement project consultant,
incentive pay adjustment
Non-Departmental 1,294 1,369 75 5.8%
Human Resources 2,042 2,307 265 13.0%
Roll over of purchase orders related to summer jobs for
youth program and MOU labor negotiations, employee
incentive pay adjustment
Economic and Community
Development 8,228 16,293 8,065 98.0%
Roll over of purchase orders from the previous year for
plan review and building inspection services, General Plan
update and work related to the Economic Advancement
Center
Fire 29,508 29,892 384 1.3%
Police 32,388 32,844 456 1.4%
Public Works 5,978 6,396 418 7.0%
Roll over of purchase orders from the previous year plus
adjustments for employee incentive pay, part-time workers
for graffiti remediation and free South City shuttle outreach
Library 6,222 6,898 676 10.9%Adjustments for appropriations of multiple state and local
grants received for Library programs
Parks and Recreation 16,729 18,372 1,643 9.8%
Adjustments for appropriations of local grants received
during the year, roll over of purchase orders from the
previous year, adjustments for additional vehicles, concert
in the park, breezeway improvements, master arts plan
and employee incentive pay
Total 112,319$ 125,862$ 13,543$ 12.1%
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Analysis of Major Governmental Funds
General Fund
In FY 2021-22, total General Fund revenues, excluding transfers in, were $140.9 million which was
$15.3 million, or 12.2% higher than the final amended budget. Total General Fund expenditures,
excluding transfers out and including encumbrances, ended FY 2021-22 at $129.5 million which
was $3.7 million, or 2.9%, higher than final budget due to overspends in various departments and
carry over of a significant number of purchase orders.
As of June 30, 2022, the General Fund total fund balance was $76.6 million, $11.9 million of which
was attributable to Measure W. Of the remaining fund balance, $25.1 million was held in reserve in
accordance with city policy which is aligned with the Governmental Finance Officers Association
(GFOA) recommended reserve practice of between 15-20 percent of General Fund operating
revenue. The remaining $39.6 million was held in designation/reserve accounts for various purposes
including unassigned fund balance (available for operational use), encumbrances (committed
expenditure items), capital projects and land held for development.
Revenues. Property tax collections in FY 2020-21 were $49.8 million, which was $8.7 million or
21.2% over final budget. This was mainly due to higher-than-expected Vehicle Licensing Fee (VLF)
payments which included an additional $3.7 million allocated to the City by the state in relation to
a VLF shortfall in the prior year.
Sales tax revenue, including Measure W, was $37.8 million, which was $4.8 million or 14.5% over
final budget, reflecting the City’s strong recovery from the COVID-19 pandemic.
Transient occupancy taxes totaled $12.1 million for the year, which was $3.6 million, or 41.4%,
over final budget. This category was budgeted conservatively due to the expected lingering impacts
of the pandemic on the hospitality industry seen in the prior year. However, travel rebounded quickly
leading to high hotel occupancy rates and considerably higher final collections than budget. By way
of contrast, pre-pandemic TOT levels were approximately $17 million (FY2018-19).
Intergovernmental revenues were $3.2 million which is $2.6 million, or 45.1%, lower than final
budget mainly due to the timing of receipt of various grants, many of which are on a reimbursement
basis so it depends on progress of projects during the year.
Licenses and permits revenues were $14.1 million, which was $2.4 million or 14.5% under final
budget. This category can be very difficult to budget since receipts depend on the timing of
development projects within the City.
Charges for services was $9.7 million, which was $1.9 million or 24.2% above budget. This category
was revised downward during the mid-year review due to lower than expected receipts at the time
for classes, rentals and child care but the year ended much stronger than expected and exceeded the
original budget.
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Measure W revenue increased by $2.0 million, or 15.1%, from $13.4 million in FY2020-21 to $15.4
million in FY 2021-22 and exceeded budget by $2.7 million primarily due to the City’s strong
continued recovery from the COVID-19 pandemic.
Expenditures. Higher than expected expenditures in the Fire department are primarily payroll-
related, particularly in overtime due to regular staff working additional hours to cover unfilled
vacancies. To a lesser extent, the Police department also saw payroll-related expenditures exceed
budget but this was partially offset by underspends in supplies and services. The Non-Departmental
category was over budget due to a one-time transfer to the City Benefits Fund to address a deficit in
the fund. These overspends were offset by savings in other departments, including Finance, Library
and Economic and Community Development. Compared to the prior year, General Fund
expenditures, excluding transfers and including encumbrances, increased from $114.5 million to
$129.2 million. This was driven by the recovery from the pandemic and the commensurate return
to a more normal level of services to residents which led to more staffing and operational
expenditures. Versus final budget, the General Fund ended the year with a $3.7 million unfavorable
variance.
Low and Moderate Income Housing Assets 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 Housing Successor 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.
As of June 30, 2022, the fund balance was $3.0 million, a slight reduction from $3.2 million at the
end of the prior year. In FY 2021-22, the City Housing Fund received $0.1 million in revenues. The
fund had $0.3 million in expenditures, $0.1 million of which was for rental assistance to households
severely impacted by the COVID-19 pandemic and $0.2 million for administrative staff costs to
support the City’s Housing Division.
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
American Rescue Plan Act Fund
In response to the COVID-19 pandemic, the federal government passed the American Rescue Plan
Act (ARPA) in March 2021 which included financial aid to be provided to cities. The City of South
San Francisco was awarded $12.3 million in ARPA funds, received in two equal tranches in June
2021 and June 2022. During FY 2021-22, $1.1 million was spent on the Guaranteed Income Pilot
Program and other minor projects to support communities impacted by the pandemic. $2.6 million
was also transferred to the General Fund to replace revenues lost as a direct result of pandemic
impacts. ARPA funds are held as unearned revenue on the balance sheet, netting off against the cash
balance, and recognized as revenue as project expenditures are incurred. This results in a zero fund
balance at year end.
Capital Improvement Funds
The City consolidates and reports its governmental fund-type capital project expenditures in these
funds. 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. From time to time and when financially feasible and prudent to do so, the
City issues bonds which generate proceeds for large-scale public facility projects. In addition to the
bond issuances in FY2019-20 for the new Police station (series 2020A) and in FY2020-21 for the
Civic Center Campus (series 2021A), the City issued $65.4 million in bonds to fund the construction
of the new Aquatic Center and ballfields at Orange Memorial Park as well as the replacement of the
playground and two bridges over Colma Creek also at Orange Memorial Park (series 2022A). Entire
capital projects are appropriated in one-year, but expended over multiple years, with unspent
appropriations carried forward year-to-year until completion. In FY 2021-22, combined ending fund
balance for Capital Improvement Funds (excluding Impact Fee Funds) was $149.7 million which
increased $12.8 million from the combined ending fund balance of $130.9 million in the prior year.
The increase was due to the issuance of the $65.4 million series 2022A bonds which generated
proceeds for projects which was largely offset by the spending down of the series 2020A bond
proceeds as the new Police Station neared completion during the year, and the series 2021A bond
proceeds as the Civic Center Campus construction continued apace.
Developer Impact Fees Capital Projects Funds
To ensure developers pay their fair share of the impact of new developments on the City’s capital
and infrastructure, the City imposes impact fees. As South San Francisco emerged from the COVID-
19 pandemic during FY2021-22, the City continued to experience a robust development
environment that accounted for significant collection of developer impact fees including $1.0
million in East of 101 Sewer Impact Fees to be used for capital projects to maintain the sewer
collection and treatment facilities serving the east of 101 area. This fund experienced an overall $0.8
million increase during the year in fund balance from $4.1 million to $4.9 million.
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
The City also received $7.1 million in Traffic Impact Fees from developers to be used for expanded
roadway and intersection improvements serving the east of 101 area. After the effect of the negative
mark-to-market of city investments and transfer out of $6 million to fund CIP projects, the fund
balance increased slightly to $24.8 million from $24.5 million in the prior year.
Childcare impact fees in the amount of $7.7 million were also received in the year from developers.
These funds will be used for new and expanded childcare facilities in the City. As a result of these
receipts, fund balance climbed to $13.9 million in FY 2021-22 from $7.1 million in the prior year.
Other Governmental Funds
Presented as a group in the Basic Financial Statements, these funds are individually presented as
Supplementary Information.
In addition to the impact fees classified as major funds in FY 2021-22 discussed previously, it’s
worth noting that other impact fee funds, presented as non-major funds, also received considerable
developer payments during the year owing to the high level of development activity in the City. This
includes $4.0 million in Park Construction Impact Fees which will be used for the improvements
and construction of City-park facilities, $3.4 million in Commercial Linkage Impact Fees which
will be used to provide affordable housing and to support the City’s adopted 2015-2023 Housing
Element, $1.7 million in Public Safety Impact Fees to be used for new and expanded public safety
capital facility projects and equipment, $1.7 million in Park Land Acquisition Fees to be used to
acquire land for parks within the City, and $14.0 million in Oyster Point Development Impact Fees
to be used for interchange projects in the Oyster Point area.
Enterprise Funds
Sewer Enterprise Fund
The Sewer Enterprise fund reported operating revenue (before non-operating revenues and
operating transfers) of $28.4 million in FY2021-22, a decrease of $5.4 million, or 16.0%, from $33.8
million in the prior year. This substantial reduction in revenue is a direct impact from the COVID-
19 pandemic during which many commercial locations closed for long periods of time resulting in
substantially less water usage and therefore smaller sewer effluent volumes on which service
charges are based. This was combined with an overall drive by large commercial sites within the
City to conserve water which subsequently reduces service charge revenues. Since charges are
always based on the prior year water use, revenues for FY2021-22 were lower than normal.
Operating expenses decreased $0.3 million, or 1.0%, from $ 26.1 million to $25.8 million, due to
lower payroll-related expenses from vacancies, partially offset by increases in professional services,
program supplies and utilities.
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
Parking District Fund
In FY 2022, the Parking District fund reported an operating loss (before non-operating revenues and
operating transfers) of $0.2 million which was a reduction on the loss in the prior year of $0.6 million.
Operating revenues increased by $0.2 million, or 30.0%, from $0.8 million to $1.0 million, primarily
due to increased usage of parking meters as businesses opened up as the City continued to recover
from the pandemic and shoppers returned in their cars to the downtown area. Operating expenses
decreased by $0.1 million, or 12.5%, from $1.3 million to $1.2 million due to lower professional
services expenses.
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 $0.4 million, which is flat
compared to the prior year, primarily from a levy on property owners. Transfers in from other funds
totaled $0.9 million - $0.2 million from the General Fund and $0.7 million from non-Major
Governmental Funds. A total of $5.3 million in grant reimbursements was received during the year
from the state in relation to the Orange Memorial Park storm water capture CIP project. Operating
expenses in this fund totaled $1.3 million, an increase of $0.4 million, or 42.0%, from $0.9 million
in the prior year, primarily due to higher payroll-related expenditures. Net position increased $5.4
million from $11.5 million to $16.8 million, largely due to the grant received, and year-end accruals
for additional grant reimbursements for work completed during the year.
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
CAPITAL ASSETS
Generally accepted accounting principles require the City to add infrastructure to its reportable
capital assets. Infrastructure includes streets, drainage systems, and traffic control and safety devices.
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 Position. Such information is
summarized below and is more completely detailed in Note 3 to the Basic Financial Statements. The
City depreciates all of its capital assets, except land and construction in progress.
At June 30, 2022, the City had $662.1 million in capital assets (as shown in table 7 below), net of
depreciation, representing a substantial increase of $92.6 million from the prior year, driven
primarily by in-progress construction projects such as the new Civic Center Campus.
The City’s various capital asset types used in Governmental and Business-Type Activities, are
illustrated in Table 7:
Table 7
Capital Assets (in Millions) at June 30
Increase / (Decrease)
2022 2021 Amount %
Governmental Activities:
Land 72.2$ 66.7$ 5.5$ 8.2%
Buildings and improvements 97.4 97.4 0.0 0.0%
Equipment and vehicles 24.8 24.5 0.3 1.2%
Furniture and fixtures 2.6 2.6 0.0 0.0%
Infrastructure ‐ streets 205.6 200.9 4.7 2.3%
Infrastructure ‐ traffic control devices 12.6 12.6 0.0 0.0%
Infrastructure ‐ storm drains 8.9 8.9 0.0 0.0%
Construction in progress 241.9 160.4 81.5 50.8%
Less accumulated depreciation (200.3) (190.9) (9.4) 4.9%
Totals 465.7$ 383.1$ 82.6$ 21.6%
Business‐Type Activities
Land 0.8$ 0.8$ ‐$ 0.0%
Buildings and improvements 80.1 80.1 0.0 0.0%
Clean water facilities and transmission line 79.9 79.9 0.0 0.0%
Infrastructure ‐ storm drains 6.2 6.2 0.0 0.0%
Infrastructure ‐ streets 7.4 7.4 0.0 0.0%
Equipment and vehicles 18.5 18.5 0.0 0.0%
Construction in progress 84.0 68.9 15.1 21.9%
Less accumulated depreciation (80.5) (75.4) (5.1) 6.8%
Totals 196.4$ 186.4$ 10.0$ 5.4%
Total City 662.1$ 569.5$ 92.6$ 16.3%
23 286
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
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 shown in table 8 (excluding
unamortized bond premiums):
Table 8
Outstanding Debt
(In Millions) at June 30
In June 2022, the City of South San Francisco Public Facilities Financing Authority issued $65.4
million in lease revenue bonds, Series 2022A, for the construction of the new Aquatic Center and
ballfields, and the replacement of the playground and two bridges over Colma Creek at Orange
Memorial Park. The City received a total of $72.1 million in proceeds from this issuance, of which
$49 million, $12.3 million, $2.2 million and $1.5 million was allocated to the four projects
respectively, and $7.1 million reserved for capitalized interest and fees.
Outstanding debt for Business-Type Activities remained static when compared to the prior year
since the $5.1 million drawdown against the State Water Resources Board loan was equivalent to
the amount of the loan retired during FY 2021-22.
The largest remaining debt obligations are as follows:
- 1999, 2004, 2008 State Water Resources Control Board Loans – Original debt:
$78.144.286; 2.4% to 2.6% interest rate; due 8/1/22, 4/30/26, 7/15/28. These loans
were used to improve and expand the City’s Water Quality Control Plant (WQCP).
Loan proceeds were issued as projects progressed. Debt service payment commenced
one year after project completion. WQCP user fees support the debt service payments.
Because of the regional benefits and equity interest in these projects, the City of San
Bruno shares in the loan repayments for the first two of the four current loans.
Increase / (Decrease)
Governmental Activities 2022 2021 Amount %
Lease Revenue Bonds 191.6$ 129.4$ 62.2$ 100.0%
Plus: Unamortized Bond Premium 33.2 27.6 5.6 100.0%
Loan payable to Successor Agency 2.2 3.6 (1.4) (38.9%)
Capital leases 0.1 0.3 (0.2) (66.7%)
Total Governmental Activities Outstanding Debt 227.1$ 160.9$ 66.2$ 41.1%
Business ‐type Activities
State Water Resources Board loans 60.8$ 60.5$ 0.3$ 0.5%
2005 Sewer Bonds 2.0 2.3 (0.3) (13.0%)
Total Business‐type Activities Outstanding Debt 62.8$ 62.8$ ‐$ 0.0%
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2022
- 2018 State Water Resources Control Board Loan - Original debt: $53,403,000; 1.8%
interest rate; due October 3, 2042. The loan proceeds are being used for the WQCP
Wet Weather and Digester project. Loan proceeds have been issued over time as
projects progressed. Debt service payments are due to commence on October 3, 2023,
one year after project completion. WQCP user fees support the debt service payments.
- 2020A Lease Revenue Bonds - Original debt: $43,905,000; premium received:
$10,242,530; 4 - 5% interest rate; due June 1, 2046. The bonds were used for Phase I
of the Civic Center Campus project consisting of the planning and construction of a
new Police Station and Dispatch Center for the City of South San Francisco. Measure
W sales tax revenue will fund the repayments.
- 2021A Lease Revenue Bonds - Original debt: $86,410,000; premium received:
$18,116,565; 4% interest rate; due June 1, 2046. $78,000,000 of the bond proceeds are
to be used for Phase II of the Civic Center Campus project consisting of the design and
construction of the new library, parks and recreation center, council chambers and
landscaping of the immediate surrounding area. $24,000,000 will be used for road
pavement rehabilitation throughout the City, and $2,000,000 will be used for solar roof
installation at the City's Corporation Yard. Measure W sales tax revenue will fund the
repayments.
- 2022A Lease Revenue Bonds - Original debt: $65,420,000; premium received:
$6,686,317; 4-5.25% interest rate; due June 1, 2046. $49,000,000 of the bond proceeds
are to be used for construction of the new Aquatic Center. $12.3 million will be used
for constructions of new ballfields. $2.2 million will be used for replacement of the
playground at Orange Memorial Park. $1.5 million will be used for replacement of two
bridges over Colma Creek at Orange Memorial Park. Measure W sales tax revenue will
fund the repayments.
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 Annual Comprehensive 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 addressed to the City of South San Francisco, Finance Department, P.O. Box 711, South
San Francisco, CA 94083.
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CITY OF SOUTH SAN FRANCISCO
STATEMENT OF NET POSITION AND
STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial
activities and financial position.
The Statement of Net Position reports the excess of the City’s total assets and deferred outflows of
resources over the City’s total liabilities and deferred inflows of resources, including all the City’s capital
assets and all its long-term debt. The Statement of Net Position focuses the reader on the composition of
the City’s net position, by subtracting total liabilities and deferred inflows of resources from total assets
and deferred outflows of resources.
The Statement of Net Position summarizes the financial position of all the City’s Governmental Activities
in a single column, and the financial position of all the City’s Business-Type Activities in a single
column; these columns are followed by a total column which presents the financial position of the entire
City.
The City’s Governmental Activities include the activities of its General Fund, along with all its Special
Revenue, Capital Projects and Debt Service Funds. Since the City’s Internal Service Funds service these
Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund
transactions and balances. The City’s Business Type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared
on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of
when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial
statements, which reflect only current assets, current liabilities, available revenues and measurable
expenditures.
The Statement of Activities presents the City’s expenses first, listed by program, and follow these with
the expenses of its business-type activities. Program revenues—that is, revenues which are generated
directly by these programs—are then deducted from program expenses to arrive at the net expense of each
governmental and business-type program. The City’s general revenues are then listed in the
Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net
Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City, the City of South San Francisco Capital
Improvements Financing Authority, the Parking Authority of the City of South San Francisco and the
City of South San Francisco Public Facilities Financing Authority that are legally separate but are
component units of the City because they are controlled by the City, which is financially accountable for
the activities. Data for the South San Francisco Conference Center Authority is reflected as a discretely
presented component unit of the City. This data is presented separately from other funds of the City to
reflect operations under control of a governing body with a voting majority which is different from the
City Council.
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Component Unit
Primary Government South San Francisco
Governmental Business-Type Conference
Activities Activities Total Center
ASSETS
Cash and investments (Note 2)$239,818,986 $25,001,166 $264,820,152 $3,374,045
Receivables:
Accounts 22,031,560 5,539,679 27,571,239 239,569
Accrued interest 656,639 67,683 724,322
Loans 3,253,202 3,253,202
Due from Conference Center 40,379 40,379
Leases (Note 10)14,653,121 14,653,121
Internal balances (Note 4A)630,000 (630,000)
Deposits 309,790 309,790 17,042
Inventory 4,099 4,099
Prepaid items 1,204,373 1,204,373
Restricted cash and investments (Note 2)144,307,312 182,446 144,489,758
Properties held for redevelopment (Note 1N)14,763,033 14,763,033
Capital assets (Note 3):
Nondepreciable 314,107,786 84,778,042 398,885,828
Depreciable, net accumulated depreciation 151,587,263 111,599,962 263,187,225 3,656,555
Total Assets 907,367,543 226,538,978 1,133,906,521 7,287,211
DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 7)23,087,021 2,565,225 25,652,246
Related to OPEB (Note 9)5,669,372 629,930 6,299,302
Total Deferred Outflows of Resources 28,756,393 3,195,155 31,951,548
LIABILITIES
Accounts payable 21,665,787 590,727 22,256,514 148,705
Accrued salaries and benefits 1,766,827 1,766,827 49,167
Accrued interest payable 690,006 210,916 900,922
Other payables 4,952,192 1,901,456 6,853,648
Deposits payable 5,348,610 7,500 5,356,110 256,306
Unearned revenue 8,481,273 33,027 8,514,300
Accrued insurance losses (Note 12):
Due within one year 3,047,258 3,047,258
Due in more than one year 13,436,000 13,436,000
Compensated absences obligation (Note 1L):
Due within one year 5,432,020 589,258 6,021,278
Due in more than one year 3,032,874 200,814 3,233,688
Debt and lease financing obligations (Note 5):
Due within one year 3,329,637 5,312,308 8,641,945
Due in more than one year 223,757,842 57,467,142 281,224,984
Lease liability (Note 10):
Due within one year 349,429
Due in more than one year 2,059,878
Net pension liability - due in more than one year (Note 7)129,941,552 14,437,950 144,379,502
Net OPEB Liability - due in more than one year (Note 9)52,307,242 5,811,916 58,119,158
Total Liabilities 477,189,120 86,563,014 563,752,134 2,863,485
DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 7)41,567,798 4,618,644 46,186,442
Related to OPEB (Note 9)6,140,322 682,258 6,822,580
Related to leases (Note 10)14,390,446 14,390,446
Total Deferred Inflows of Resources 62,098,566 5,300,902 67,399,468
NET POSITION (Note 6)
Net investment in capital assets 452,722,446 133,598,554 586,321,000 1,247,248
Restricted for:
Debt service
Special revenue projects 39,574,200 39,574,200
Capital projects 84,722,535 84,722,535
Redevelopment and community development activities 14,763,033 14,763,033
Total Restricted Net Position 139,059,768 139,059,768
Unrestricted (194,945,964)4,271,663 (190,674,301)3,176,478
Total Net Position $396,836,250 $137,870,217 $534,706,467 $4,423,726
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF NET POSITION
JUNE 30, 2022
29 292
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary Government
Governmental Activities:
General Government $20,793,108 $5,413,298 $4,195,664
Fire 28,530,628 7,857,602 14,500
Police 35,635,007 2,878,353 775,579
Public Works 7,544,142 17,734,041 3,745,967 $3,342,651
Parks and Recreation 19,482,582 3,058,826 485,986
Library 6,060,920 1,054,339 566,457
Economic and Community Development 12,034,671 28,676,546 1,068,593
Interest on long term debt 4,686,930
Total Governmental Activities 134,767,988 66,673,005 10,852,746 3,342,651
Business-type Activities
Sewer 26,246,647 22,778,206 5,663,695
Parking District 1,170,305 993,986
Storm Water 1,309,360 412,842 5,252,622
Total Business-type Activities 28,726,312 24,185,034 5,663,695 5,252,622
Total Primary Government $163,494,300 $90,858,039 $16,516,441 $8,595,273
Component Unit
Conference Center $2,959,376 $752,191
General revenues:
Taxes:
Property taxes
Sales taxes
Transient occupancy taxes
Franchise Fees
Other taxes
Motor vehicle in lieu, unrestricted
Property taxes in lieu of vehicle license fees
Investment earnings
Gain on sale of property
Miscellaneous
Special Item:
Remittance of land sale proceeds to taxing entities
Transfers (Note 4)
Total general revenues, special item and transfers
Change in Net Position
Net Position - Beginning, as Restated (Note 1T)
Net Position - Ending
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
Program Revenues
30 293
Component Unit
South
San Francisco
Governmental Business-Type Conference
Activities Activities Total Center
($11,184,146)($11,184,146)
(20,658,526)(20,658,526)
(31,981,075)(31,981,075)
17,278,517 17,278,517
(15,937,770)(15,937,770)
(4,440,124)(4,440,124)
17,710,468 17,710,468
(4,686,930)(4,686,930)
(53,899,586)(53,899,586)
$2,195,254 2,195,254
(176,319)(176,319)
4,356,104 4,356,104
6,375,039 6,375,039
(53,899,586)6,375,039 (47,524,547)
($2,207,185)
40,011,221 40,011,221
38,143,689 38,143,689
12,135,638 12,135,638 1,817,344
4,863,076 4,863,076
6,537,423 6,537,423
77,558 77,558
11,988,715 11,988,715
(6,724,092)(761,751)(7,485,843)11,377
1,518,059 1,518,059
14,458,939 14,458,939
(2,962,923)(2,962,923)
(1,419,235)1,419,235
118,628,068 657,484 119,285,552 1,828,721
64,728,482 7,032,523 71,761,005 (378,464)
332,107,768 130,837,694 462,945,462 4,802,190
$396,836,250 $137,870,217 $534,706,467 $4,423,726
Primary Government
Net (Expenses) Revenues and Changes in Net Position
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295
FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year.
The funds described below were determined to be Major Funds by the City in fiscal 2022. Individual non-
major funds may be found in the Supplemental section.
GENERAL FUND
This fund accounts for resources traditionally associated with government, such as administration, public
safety, library, parks maintenance, and recreation, outside of those accounted for in other funds.
LOW AND MODERATE INCOME HOUSING ASSETS SPECIAL REVENUE FUND
To account for the activities related to the assets assumed by the City as Housing Successor to the
housing activities of the former Redevelopment Agency of the City of South San Francisco. The main
source of revenue for this fund is the repayment of loans restricted for housing activities.
AMERICAN RESCUE PLAN ACT SPECIAL REVENUE FUND
To account for the City’s allocation of American Rescue Plan federal stimulus funds, as part of the federal
government’s response to the impacts of the COVID-19 pandemic.
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction, or improvement of City owned
facilities and infrastructure. Funding comes from the general fund, special revenue funds, grants and fees.
EAST OF 101 SEWER IMPACT FEES CAPITAL PROJECTS FUND
These fees provide new development’s share of new and rehabilitated sewer collection and treatment
facilities to serve the East of Highway 101 area.
TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND
These fees are to provide new development’s share of new and expanded roadway and intersection
improvements to serve the East of Highway 101 area and other areas of the City.
CHILD CARE IMPACT FEES CAPITAL PROJECTS FUND
These citywide fees provide new development’s share of new and expanded childcare facilities to serve
the childcare needs of working parents.
CAPITAL INFRASTRUCTURE RESERVE FUND
Replacement, upgrade, and maintenance of the City’s infrastructure are backlogged, constituting a
significant liability. Funds are set aside in this fund as part of the budget process and as part of the City’s
reserve policy to address the replacement and/or upgrade of the city infrastructure (such as parks,
buildings, facilities, streets, sidewalks, and storm water facilities).
33 296
FUND FINANCIAL STATEMENTS (Continued)
CAPITAL IMPROVEMENT POLICE STATION CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction, and installation of certain
capital improvements constituting the new City police station located within the City’s new Civic Center
Campus, and related improvements, facilities and equipment, and pay the costs incurred in connection
with the issuance of the Series 2020A Bonds.
CAPITAL IMPROVEMENT CIVIC CAMPUS CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction, and installation of certain
capital improvements constituting the City’s new Civic Center Campus, and related improvements,
facilities and equipment, and pay the costs incurred in connection with the issuance of the Series 2021A
Bonds.
CAPITAL IMPROVEMENT ORANGE MEMORIAL PARK CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction and installation of certain capital
improvements at the City-owned Orange Memorial Park and pay the costs incurred in connection with the
issuance of the Series 2022A Bonds.
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298
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2022
Special Revenue Funds Capital Projects Funds
Low and
Moderate American East of 101
General Income Rescue Capital Sewer
Fund Housing Assets Plan Act Improvement Impact Fees
ASSETS
Cash and investments (Note 2)$50,061,615 $2,469,920 $8,263,293 $54,317 $4,860,145
Receivables:
Accounts 18,303,062 5,075 2,443,532
Accrued interest 161,122 7,634 12,661
Due from Conference Center 40,379
Loans 560,238
Leases (Note 10)13,455,776 1,197,345
Due from other funds (Note 4B)1,270,000
Inventory 4,099
Restricted cash and investments (Note 2)152,797 21,296,576
Properties held for redevelopment (Note 1N)14,763,033
Total Assets $98,211,883 $4,240,212 $8,263,293 $23,794,425 $4,872,806
LIABILITIES
Liabilities:
Accounts payable $4,589,446 $27,938 $5,128,420
Accrued salaries and benefits 1,766,827
Other payable 842,046 1,027,312
Deposits payable 1,159,644
Unearned revenue $8,263,293
Due to other funds (Note 4B)430,000
Total Liabilities 8,357,963 27,938 8,263,293 6,585,732
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 1,799,387
Related to leases (Note 10)13,207,264 1,183,182
Total Deferred Inflows of Resources 13,207,264 1,183,182 1,799,387
FUND BALANCE
Fund Balances (Note 6):
Nonspendable 4,099
Restricted 14,763,033 3,029,092 16,847,198 $4,872,806
Committed 16,083,977
Assigned 7,482,439
Unassigned 38,313,108 (1,437,892)
Total Fund Balances (Deficits)76,646,656 3,029,092 15,409,306 4,872,806
Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficits) $98,211,883 $4,240,212 $8,263,293 $23,794,425 $4,872,806
See accompanying notes to basic financial statements
36 299
Capital Projects Funds
Capital
Capital Capital Capital Improvement Other Total
Traffic Child Care Infrastructure Improvement Improvement Orange Governmental Governmental
Impact Fees Impact Fees Reserve Police Station Civic Campus Memorial Park Funds Funds
$24,685,029 $13,862,533 $24,822,132 $72,342,469 $201,421,453
1,279,891 22,031,560
76,528 38,631 68,792 186,179 551,547
40,379
2,692,964 3,253,202
14,653,121
1,270,000
4,099
$708,008 $50,463,437 $71,684,403 2,091 144,307,312
14,763,033
$24,761,557 $13,901,164 $24,890,924 $708,008 $50,463,437 $71,684,403 $76,503,594 $402,295,706
$1,100 $10,875,293 $614,031 $21,236,228
1,766,827
$239,226 2,307,779 535,797 4,952,160
4,188,966 5,348,610
217,980 8,481,273
210,000 640,000
1,100 239,226 13,183,072 5,766,774 42,425,098
1,799,387
14,390,446
16,189,833
4,099
$24,761,557 $13,901,164 468,782 37,280,365 $71,684,403 70,736,820 258,345,220
16,083,977
24,889,824 32,372,263
36,875,216
24,761,557 13,901,164 24,889,824 468,782 37,280,365 71,684,403 70,736,820 343,680,775
$24,761,557 $13,901,164 $24,890,924 $708,008 $50,463,437 $71,684,403 $76,503,594 $402,295,706
37 300
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2022
Total fund balances reported on the governmental funds balance sheet $343,680,775
Amounts reported for Governmental Activities in the Statement of Net Position are
different from those reported in the Governmental Funds because of the following:
Capital assets used in Governmental Activities are not financial resources and,
therefore, are not reported in the Governmental Funds. 461,292,492
Internal service funds are used by management to charge the cost of management of
communication, telephone, building, fleet maintenance, equipment replacement, workers'
compensation, employee benefits, insurance, and post-retirement healthcare benefits to
individual funds. The assets and liabilities are included in Governmental Activities in the
Statement of Net Position. 25,412,720
The assets and liabilities below are not due and payable in the current period and
therefore are not reported in the funds:
Long-term debt (226,942,842)
Interest payable (690,006)
Deferred outflows related pension 23,087,021
Deferred outflows related to OPEB 5,669,372
Net OPEB liability (52,307,242)
Net pension liability (129,941,552)
Deferred inflows related to OPEB (6,140,322)
Deferred inflows related to pension (41,567,798)
Compensated absences (6,515,755)
Net position of governmental activities $396,836,250
See accompanying notes to financial statements
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302
Special Revenue Funds Capital Projects Funds
Low and
Moderate American East of 101
General Income Rescue Capital Sewer
Fund Housing Assets Plan Act Improvement Impact Fees
REVENUES
Property taxes $49,779,284
Sales taxes 37,760,777
Transient occupancy taxes 12,135,638
Franchise Fees 4,863,076
Other taxes 6,537,423
Intergovernmental 3,196,346 $3,755,648 $842,462
Interest and rentals 1,553,209 $98,417 ($145,957)
Licenses and permits 14,062,474
Charges for services 9,747,605 59,335 985,102
Fines and forfeitures 700,961
Other 515,004 47,076 146,037
Total Revenues 140,851,797 145,493 3,755,648 1,047,834 839,145
EXPENDITURES
Current:
City Council 252,677
City Clerk 887,678
City Treasurer 39,852
City Attorney 1,138,457
City Manager 4,191,480
Finance 3,148,914
Non-departmental 2,580,748 1,111,389 2,800
Human Resources 2,065,927
Fire 32,560,468
Police 33,281,487
Public Works 6,294,564 26,413,361
Parks and Recreation 18,092,526
Library 6,495,279
Economic and Community Development 11,006,922 344,379
Other
Capital Outlay
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 122,036,979 344,379 1,111,389 26,413,361 2,800
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 18,814,818 (198,886)2,644,259 (25,365,527)836,345
OTHER FINANCING SOURCES (USES)
Gain from sale of property 1,507,641
Issuance of debt
Bond premium
Transfers in (Note 4C)4,763,729 2,784 14,526,753
Transfers out (Note 4C)(21,235,610)(2,644,259)(2,362)(107,818)
Total Other Financing Sources (Uses)(14,964,240)2,784 (2,644,259) 14,524,391 (107,818)
Net Change in Fund Balances before special items 3,850,578 (196,102)(10,841,136)728,527
SPECIAL ITEMS
Remittance of land sale proceeds (2,962,923)
Net Change in Fund Balances 887,655 (196,102)(10,841,136)728,527
Fund balances (deficits) - July 1 75,759,001 3,225,194 26,250,442 4,144,279
Fund balances (deficits) - June 30 $76,646,656 $3,029,092 $15,409,306 $4,872,806
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022
40 303
Capital Projects Funds
Capital
Capital Capital Capital Improvement Other Total
Traffic Child Care Infrastructure Improvement Improvement Orange Governmental Governmental
Impact Fees Impact Fees Reserve Police Station Civic Campus Memorial Park Funds Funds
$2,220,652 $51,999,936
825,500 38,586,277
12,135,638
4,863,076
2,288,982 8,826,405
17,027,848 24,822,304
($880,148) ($441,678)($797,634)$13,028 $138,823 (2,075,384)(2,537,324)
14,062,474
7,083,871 7,656,815 20,254,318 45,787,046
700,961
1,815,999 2,524,116
6,203,723 7,215,137 (797,634)13,028 138,823 42,357,915 201,770,909
252,677
887,678
39,852
1,138,457
4,191,480
3,148,914
2,800 3,697,737
2,065,927
37,072 32,597,540
6,332,894 64,536 39,678,917
2,800 45,150 $40,930,120 14,137,377 87,823,372
2,203,316 20,295,842
6,495,279
1,357,866 12,709,167
5,610,278 5,610,278
5,520,422 5,520,422
4,635,000 4,635,000
6,013 421,914 5,097,833 5,525,760
2,800 2,800 5,565,572 6,332,894 40,936,133 421,914 33,143,278 236,314,299
6,200,923 7,212,337 (6,363,206) (6,319,866) (40,797,310)(421,914)9,214,637 (34,543,390)
1,507,641
65,420,000 65,420,000
6,686,317 6,686,317
8,500,000 102,542 8,324,659 36,220,467
(5,929,676) (99,499)(3,141,590)(5,611,193) (38,772,007)
(5,929,676) (99,499)5,358,410 102,542 72,106,317 2,713,466 71,062,418
271,247 7,112,838 (1,004,796) (6,319,866) (40,694,768) 71,684,403 11,928,103 36,519,028
(2,962,923)
271,247 7,112,838 (1,004,796) (6,319,866) (40,694,768) 71,684,403 11,928,103 33,556,105
24,490,310 6,788,326 25,894,620 6,788,648 77,975,133 58,808,717 310,124,670
$24,761,557 $13,901,164 $24,889,824 $468,782 $37,280,365 $71,684,403 $70,736,820 $343,680,775
41 304
CITY OF SOUTH SAN FRANCISCO
Reconciliation of the
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2022
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $33,556,105
Amounts reported for Governmental Activities in the Statement of Activities are
different because of the following:
Capital Assets Transactions
Governmental funds report capital outlays as expenditures. However, in the Statement of
Activities the cost of those assets is capitalized and allocated over their estimated useful
lives and reported as depreciation expense.
Capital assets additions 91,732,476
Current year depreciation (8,611,519)
Long-Term Debt Payments
Bond proceeds provide current financial resources to governmental funds, but
issuing debt increases long-term liabilities in the Statement of Net Position.
Proceeds from issuance of bonds (65,420,000)
Bond premium (6,686,317)
Repayment of principal is an expenditure in the governmental funds, but
in the Statement of Net Position the repayment reduces long-term liabilities.
Repayment of principal is added back to fund balance 4,635,000
Amortization of premium is added back to fund balance 1,104,016
Accrual of Non-Current Items
of current financial resources and therefore is not reported as revenue or expenditures in
governmental funds (net change):
Unavailable revenue 1,799,387
Interest payable (265,186)
Compensated absences 462,871
Net pension liability, deferred outflows and inflows of resources 11,225,062
Net OPEB liability, deferred outflows and inflows of resources 626,641
Allocation of Internal Service Fund Activity
Internal service funds are used by management to charge the costs of certain activities to
individual funds. The net revenue of the internal service fund is reported with governmental
activities.569,946
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $64,728,482
See accompanying notes to financial statements
The amount below included in the Statement of Activities does not require the use
42 305
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $41,074,710 $41,074,710 $49,779,284 $8,704,574
Sales taxes 32,239,177 32,989,177 37,760,777 4,771,600
Transient occupancy taxes 7,085,194 8,585,194 12,135,638 3,550,444
Franchise fees 4,600,000 4,600,000 4,863,076 263,076
Other taxes 3,614,753 3,614,753 6,537,423 2,922,670
Intergovernmental 2,325,338 5,818,982 3,196,346 (2,622,636)
Interest and rentals 3,564,976 3,504,976 1,553,209 (1,951,767)
Licenses and permits 16,453,166 16,453,166 14,062,474 (2,390,692)
Charges for services 9,287,470 7,848,478 9,747,605 1,899,127
Fines and forfeitures 676,975 676,975 700,961 23,986
Other 232,718 394,382 515,004 120,622
Amounts available for appropriation 121,154,477 125,560,793 140,851,797 15,291,004
Charges to appropriations (outflows):
City Council 292,426 292,427 252,677 39,750
City Clerk 1,151,844 1,231,044 887,678 343,366
City Treasurer 160,245 160,244 39,852 120,392
City Attorney 910,049 910,049 1,138,457 (228,408)
City Manager 3,607,557 4,512,195 4,451,837 60,358
Finance 3,807,781 4,385,682 3,603,809 781,873
Non-departmental 1,294,252 1,369,252 2,581,079 (1,211,827)
Human Resources 2,042,597 2,307,004 2,184,942 122,062
Fire 29,508,065 29,892,151 32,975,264 (3,083,113)
Police 32,386,774 32,843,169 33,383,916 (540,747)
Public Works 5,978,429 6,396,059 6,743,595 (347,536)
Parks and Recreation 16,729,027 18,371,855 18,920,003 (548,148)
Library 6,221,935 6,897,585 6,495,735 401,850
Economic and Community Development 8,227,651 16,293,222 15,860,574 432,648
Total charges to appropriations 112,318,632 125,861,938 129,519,418 (3,657,480)
OTHER FINANCING SOURCES (USES)
Gain from sale of property 630,000 690,000 1,507,641 817,641
Transfers in (Note 4C) 1,187,080 5,519,792 4,763,729 (756,063)
Transfers out (Note 4C) (9,771,783) (34,516,335) (21,235,610) 13,280,725
Total Other Financing Sources (Uses) (7,954,703) (28,306,543) (14,964,240) 13,342,303
881,142 (28,607,688) (3,631,861) 24,975,827
SPECIAL ITEM
Remittance of land sale proceeds (2,962,923) (2,962,923)
NET CHANGE IN FUND BALANCE $881,142 ($28,607,688) (6,594,784) $22,012,904
Fund Balance - July 1 75,759,001
Adjustment to budgetary basis:
Encumbrance adjustments 7,482,439
Fund Balance - June 30 $76,646,656
See accompanying notes to financial statements
Budgeted Amounts
NET CHANGE IN FUND BALANCES BEFORE SPECIAL ITEM
43 306
Variance with
Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:
Interest and rental $167,000 $167,000 $98,417 ($68,583)
Other 140,000 140,000 47,076 (92,924)
Total Revenues 307,000 307,000 145,493 (161,507)
EXPENDITURES:
Current:
Economic and Community Development 671,489 685,423 355,122 330,301
Total Expenditures 671,489 685,423 355,122 330,301
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (364,489) (378,423) (209,629) 168,794
OTHER FINANCING SOURCES (USES)
Transfers in (Note 4C) 2,784 2,784
NET CHANGE IN FUND BALANCE ($364,489) ($375,639) (206,845) $168,794
Fund balance - July 1 3,225,194
Adjustment to budgetary basis:
Encumbrance adjustments 10,743
Fund balance - June 30 $3,029,092
SPECIAL REVENUE FUND
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
LOW AND MODERATE INCOME HOUSING ASSETS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Budgeted Amounts
44 307
MAJOR PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private
business enterprise. The intent of the City is that the cost of providing goods and services be financed
primarily through user charges.
SEWER ENTERPRISE FUND
This fund accounts for user charges and debt proceeds supporting the operation, maintenance, and capital
expansion of the wastewater collection and treatment system.
PARKING DISTRICT FUND
This fund accounts for meter and parking permit fees used to acquire and maintain parking facilities.
STORM WATER FUND
This fund accounts for user charges sustaining the Storm Water Management Program mandated by state
and federal authorities.
45 308
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2022
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds
ASSETS
Current assets:
Cash and investments (Note 2)$21,609,890 $3,386,042 $5,234 $25,001,166 $38,397,533
Receivables:
Accounts 1,824,711 3,714,968 5,539,679
Accrued interest 57,079 10,604 67,683 105,092
Deposits 309,790
Prepaid items 1,204,373
Restricted cash and investments (Note 2)182,446 182,446
Total current assets 23,674,126 3,396,646 3,720,202 30,790,974 40,016,788
Noncurrent assets:
Capital assets (Note 3):
Nondepreciable 71,476,360 421,149 12,880,533 84,778,042
Depreciable, net accumulated depreciation 100,514,898 9,511,977 1,573,087 111,599,962 4,402,557
Total non-current assets 171,991,258 9,933,126 14,453,620 196,378,004 4,402,557
Total Assets 195,665,384 13,329,772 18,173,822 227,168,978 44,419,345
DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 7)2,565,225 2,565,225
Related to OPEB (Note 9)629,930 629,930
Total Deferred Outflows of Resources 3,195,155 3,195,155
LIABILITIES
Current liabilities:
Accounts payable 552,817 16,028 21,882 590,727 429,559
Other payable 1,253,363 648,093 1,901,456 32
Accrued interest payable 210,916 210,916
Deposits payable 7,500 7,500
Unearned revenue 33,027 33,027
Due to other funds (Note 4B)630,000 630,000
Accrued insurance loss (Note 12)3,047,258
Compensated absences obligation (Note 1L)562,874 340 26,044 589,258 1,221,145
Current portion of long-term debt (Note 5)5,312,308 5,312,308 144,637
Total current liabilities 7,932,805 16,368 1,326,019 9,275,192 4,842,631
Noncurrent liabilities:
Accrued insurance losses (Note 12)13,436,000
Compensated absences obligation (Note 1L)186,174 14,640 200,814 727,994
Noncurrent portion of long-term debt (Note 5)57,467,142 57,467,142
Net pension liability (Note 7)14,437,950 14,437,950
Net OPEB liability (Note 9) 5,811,916 5,811,916
Total noncurrent liabilities 77,903,182 14,640 77,917,822 14,163,994
Total Liabilities 85,835,987 16,368 1,340,659 87,193,014 19,006,625
DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 7)4,618,644 4,618,644
Related to OPEB (Note 9)682,258 682,258
Total Deferred Inflows of resources 5,300,902 5,300,902
NET POSITION:
Net investment in capital assets 109,211,808 9,933,126 14,453,620 133,598,554 4,257,919
Unrestricted (deficit) (1,488,158) 3,380,278 2,379,543 4,271,663 21,154,801
Total Net Position $107,723,650 $13,313,404 $16,833,163 $137,870,217 $25,412,720
See accompanying notes to financial statements
46 309
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds
OPERATING REVENUES
Charges for services $22,567,226 $412,517 $22,979,743 $28,536,570
Other cities' participation 5,663,695 5,663,695
Permit fees 210,980 210,980
Parking fees $993,986 993,986
Total Operating Revenues 28,441,901 993,986 412,517 29,848,404 28,536,570
OPERATING EXPENSES
Personnel expenses 9,088,372 367,524 1,126,715 10,582,611 18,194,228
Professional services 3,346,076 339,154 51,169 3,736,399 567,727
OPEB Expenses 535,039 554 535,593
Program supplies 1,754,099 1,264 1,067 1,756,430 2,037,346
Insurance 210,870 3,698 214,568 2,623,826
Self-insurance and claims 2,248,076
Repair and maintenance 1,178,368 19,382 1,197,750 856,617
Rents 1,689,059 1,689,059
Utilities 1,742,123 96,164 12,781 1,851,068 176,937
Administration 1,427,208 113,007 48,535 1,588,750
Depreciation 4,814,962 252,638 39,839 5,107,439 967,562
Other 21,262 6,174 27,436 555,977
Total Operating Expenses 25,807,438 1,170,305 1,309,360 28,287,103 28,228,296
Operating Income (Loss) 2,634,463 (176,319) (896,843) 1,561,301 308,274
NONOPERATING REVENUES (EXPENSES)
Interest income (652,348) (121,962) 12,559 (761,751) (1,209,727)
Gain on dispositions of capital assets 10,418
Interest expense (439,209) (439,209) (6,614)
Other 325 325 335,290
Total Nonoperating Revenues (Expenses) (1,091,557) (121,962) 12,884 (1,200,635) (870,633)
Income (loss) before contributions and transfers 1,542,906 (298,281) (883,959) 360,666 (562,359)
TRANSFERS
Capital subventions and grants 5,252,622 5,252,622
Transfers in (Note 4C) 489,610 1,440 985,261 1,476,311 1,132,305
Transfers (out) (Note 4C) (57,076) (57,076)
Change in Net Position 1,975,440 (296,841) 5,353,924 7,032,523 569,946
Net Position (Deficits) - July 1 105,748,210 13,610,245 11,479,239 130,837,694 24,842,774
Net Position (Deficits) - June 30 $107,723,650 $13,313,404 $16,833,163 $137,870,217 $25,412,720
See accompanying notes to financial statements
47 310
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2022
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $29,519,529 $993,986 $1,572,969 $32,086,484
Cash payments to suppliers for goods and services (12,673,778) (692,133) (126,245) (13,492,156) ($6,258,323)
Cash payments to employees for services (10,502,325) (388,938) (1,095,129) (11,986,392) (20,041,496)
Cash received from interfund service provided 28,902,887
Cash payments for judgments and claims (1,514,615)
Net Cash Provided by (Used in) Operating Activities 6,343,426 (87,085) 351,595 6,607,936 1,088,453
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts 630,000 630,000
Transfers in 489,610 1,440 985,261 1,476,311 1,132,305
Transfers in (57,076) (57,076)
Net Cash Provided by Noncapital Financing Activities 432,534 1,440 1,615,261 2,049,235 1,132,305
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Proceeds from issuance of debt 5,147,945 5,147,945
Principal paid on long-term debt (5,173,954) (5,173,954) (140,892)
Interest paid on long-term debt (533,286) (533,286) (6,614)
Subventions and grants 5,252,622 5,252,622
Acquisition of capital assets, net (9,769,879) (8,222,453) (17,992,332) (424,683)
Proceeds from the sale of capital assets 17,719
Net Cash Used in Capital and Related Financing Activities (10,329,174) (2,969,831) (13,299,005) (554,470)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received (paid) (1,476,607) (274,869) 4,707 (1,746,769) (2,726,433)
Changes in fair value of investments 822,621 152,820 13,385 988,826 1,514,594
Net Cash Provided by Investing Activities (653,986) (122,049) 18,092 (757,943) (1,211,839)
Net Increase (Decrease) in cash and cash equivalents (4,207,200) (207,694) (984,883) (5,399,777) 454,449
Cash and cash equivalents, beginning 25,999,536 3,593,736 990,117 30,583,389 37,943,084
Cash and cash equivalents, ending $21,792,336 $3,386,042 $5,234 $25,183,612 $38,397,533
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss) $2,634,463 ($176,319) ($896,843) $1,561,301 $308,274
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation 4,814,962 252,638 39,839 5,107,439 967,562
Other non-operating revenue (expenses)325 325 335,290
Net change in assets and liabilities:
Accounts and lease receivables 1,077,628 1,160,127 2,237,755 31,027
Deposit
Prepaid items (1,204,373)
Accounts payable (1,185,649) (141,990) 16,562 (1,311,077) 24,191
Other payable 415,975 (1) 415,974 29
Unearned revenue
Accrued insurance losses 733,461
(Decrease) increase due to retirement system (1,247,231) (1,247,231)
(Decrease) increase due to OPEB (69,627) (69,627)
Compensated absence obligations (97,095) (21,414) 31,586 (86,923) (107,008)
Net Cash Provided by (Used in) Operating Activities $6,343,426 ($87,085) $351,595 $6,607,936 $1,088,453
NONCASH TRANSACTIONS
Retirement of capital assets ($7,301)
See accompanying notes to basic financial statements
48 311
FIDUCIARY FUNDS
These funds are used to account for assets held by the City as an agent for individuals, private
organizations, and other governments. The financial activities of these funds are excluded from the
government-wide financial statements, but are presented in separate Fiduciary Fund financial statements.
SUCCESSOR AGENCY PRIVATE PURPOSE TRUST FUND
The Fund is used to account for the activities of the Successor Agency to the former Redevelopment
Agency of the City of South San Francisco.
CUSTODIAL FUNDS are used to report resources, not in a trust, that are held by the City for other
parties outside of the City’s reporting entity.
49 312
Successor
Agency
Private Purpose
Trust Fund Custodial Funds
ASSETS
Cash and investments (Note 2) $1,697,719 $139,655
Accounts receivable
Interest receivable 19,610 396
Prepaid items
Advances to the City (Note 5) 2,150,152
Loans receivable (Note 14B) 80,572
Restricted cash and investments (Note 2) 19,879,521 20,221,759
Capital assets (Note 14C):
Nondepreciable 111,219
Depreciable, net accumulated depreciation 238,124
Total Assets 24,176,917 20,361,810
LIABILITIES
Accounts payable 1,261 2,500
Total Liabilities 1,261 2,500
NET POSITION
Held in trust for other purposes 24,175,656
Restricted for others 137,551
Restricted for bondholders 20,221,759
Total Net Position $24,175,656 $20,359,310
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2022
50 313
CITY OF SOUTH SAN FRANCISCO
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
Successor
Agency
Private Purpose
Trust Fund Custodial Funds
ADDITIONS
Intergovernmental $4,248,681
Plan contributions $32,041
Contributions from property owners 20,764,872
Interest and rentals (218,539) 6,893
Total Additions 4,030,142 20,803,806
DEDUCTIONS
Economic and Community Development 13,709,828
Professional services 20,100
Payments to bondholders 554,565
Depreciation 6,594
Total Deductions 13,716,422 574,665
Change in net position (9,686,280) 20,229,141
NET POSITION
Beginning of the year 33,861,936 130,169
End of the year $24,175,656 $20,359,310
See accompanying notes to financial statements
51 314
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315
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.Description of the Financial Reporting Entity
As required by generally accepted accounting principles, the financial statements present the City
of South San Francisco (the City) as the Primary Government, with its component units for which
the City is considered financially accountable. The component units discussed below are
included in the City's reporting entity because of the significance of their operational and
financial relationships with the City.
B.Description of Blended Component Units
The accompanying basic financial statements include all funds and boards and commissions that
are controlled by the City Council. The basic financial statements include the City’s blended
component units, entities for which the City is considered to be financially accountable. A
blended component unit, although a legally separate entity, is in substance, part of the City’s
operations and so data from this unit is combined with the City. The City’s following blended
component units are described below.
The City of South San Francisco Capital Improvements Financing Authority is a joint
exercise of powers authority created in 1991 between the City and the City of South San
Francisco former Redevelopment Agency. The Capital Improvements Financing Authority is
authorized to borrow money through the purchase or issuance of bonds, notes, or other
obligations for the purpose of making loans to the City and other public entities to finance capital
improvements. The City Council members serve as the Board of Directors. The Capital
Improvements Financing Authority did not have any activity during fiscal year 2022. Separate
financial statements are not issued for the Capital Improvements Financing Authority.
The Parking Authority of the City of South San Francisco was formed in October 2019
pursuant to the California Parking Law of 1949, Streets and Highways Code Section 32500, et
seq. The City Council members serve as the Board of Directors. The financial activities of the
Parking Authority are included in the Parking District Enterprise Fund. Separate financial
statements are not issued for the Parking Authority.
The City of South San Francisco Public Facilities Financing Authority is a joint exercise of
powers authority created in December 2019 between the City and the Parking Authority. The
Public Facilities Financing Authority is authorized to borrow money through the purchase or
issuance of bonds, notes, or other obligations for the purpose of making loans to the City or the
Parking Authority and other public or private entities to finance capital improvements. The City
Council members serve as the Board of Directors. The financial activities of the Public Facilities
Financing Authority are included in the Capital Improvements Police Station, Capital
Improvements Civic Campus and Capital Improvement Orange Memorial Park Capital Projects
Funds. Separate financial statements are not issued for the Public Facilities Financing Authority.
53 316
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C.Description of Discrete Component Unit
The City of South San Francisco Conference Center Authority was established in 1992 to
manage and operate the South San Francisco Conference Center. The Authority is governed by a
Board of nine commissioners consisting of two Council members and seven representatives from
various businesses appointed by City Council.
The Authority does not meet the criteria of a blended component unit, since the City Council is
not the Authority’s governing body and the Authority does not provide services entirely to the
City. However, the City is financially accountable and is able to impose its will on the Authority.
The Authority is therefore considered a discrete component unit with its financial data reported
separately from the financial data of the City.
The City of South San Francisco Conference Center Authority financial statements may be
obtained from the Authority at 255 South Airport Boulevard, South San Francisco, CA 94080.
D. Basis of Presentation
Government-wide Statements – The Statement of Net Position and the Statement of Activities
display information about the primary government (the City) and its component units. These
statements include the financial activities of the overall City government, except for fiduciary
activities. Interfund transfers and amounts owed between funds within the primary government
have been eliminated from the statements. Amounts representing interfund services and uses
remain in the statements. These statements distinguish between the governmental and business-
type activities of the City. Governmental activities generally are financed through taxes,
intergovernmental revenues, and other nonexchange transactions. Business-type activities are
financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues
for each segment of the business-type activities of the City and for each function of the City’s
governmental activities. Direct expenses are those that are specifically associated with a program
or function and, therefore, are clearly identifiable to a particular function. Program revenues
include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants
and contributions that are restricted to meeting the operational needs of a particular program and
(c) fees, grants and contributions that are restricted to financing the acquisition or construction of
capital assets. Revenues that are not classified as program revenues, including all taxes, are
presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the City’s
funds, including fiduciary funds and blended component units. Separate statements for each fund
category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund
financial statements is on major individual governmental and enterprise funds, each of which is
displayed in a separate column. All remaining governmental and enterprise funds are aggregated
and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with the principal activity of the fund. Exchange transactions are those in
which each party receives and gives up essentially equal values. Nonoperating revenues, such as
subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
54 317
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
E. Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or
expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand
total. The General Fund is always a major fund. The City may also select other funds it believes
should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial
statements:
General Fund – Accounts for resources traditionally associated with government, such as
administration, public safety, library, parks, maintenance, and recreation, outside of those
accounted for in other funds.
Low and Moderate Income Housing Assets Special Revenue Fund – This fund was
established to account for the activities related to the assets assumed by the City as Housing
Successor to the housing activities of the former Redevelopment Agency of the City. The main
source of revenue for this fund is the repayment of loans restricted for housing activities.
American Rescue Plan Act Special Revenue Fund – This Fund was established to account for
the City’s allocation of American Rescue Plan federal stimulus funds, as part of the federal
government’s response to the impacts of the COVID-19 pandemic.
Capital Improvement Capital Projects Fund – Accounts for expenditures associated with the
acquisition, construction, or improvement of City-owned facilities and infrastructure. Funding
comes from the General Fund, Special Revenue funds, grants and fees.
East of 101 Sewer Impact Fees Capital Projects Fund – These fees provide new
development’s share of new and rehabilitated sewer collection and treatment facilities to serve the
East of Highway 101 area.
Traffic Impact Fees Capital Projects Fund – These fees are to provide new developments share
of new and expanded roadway and intersection improvements to serve the East of Highway 101
area and other areas within the City.
Child Care Impact Fees Capital Projects Fund – These citywide fees provide new
development’s share of new and expanded childcare facilities to serve the City.
Capital Infrastructure Reserve Fund – Replacement, upgrade, and maintenance of the City’s
infrastructure are backlogged, constituting a significant liability. Funds are set aside in this fund
as part of the budget process and as part of the City’s reserve policy to address the replacement
and/or upgrade of the city infrastructure (such as parks, buildings, facilities, streets, sidewalks,
and storm water facilities).
55 318
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Capital Improvement Police Station – Accounts for expenditures associated with the
acquisition, construction, and installation of certain capital improvements constituting the new
City police station located within the City’s new Civic Center Campus, and related
improvements, facilities and equipment, and pay the costs incurred in connection with the
issuance of the Series 2020A Bonds.
Capital Improvement Civic Campus – Accounts for expenditures associated with the
acquisition, construction, and installation of certain capital improvements constituting the City’s
new Civic Center Campus, and related improvements, facilities and equipment, and pay the costs
incurred in connection with the issuance of the Series 2021A Bonds.
Capital Improvement Orange Memorial Park Capital Projects Fund – Accounts for
expenditures associated with the acquisition, construction and installation of certain capital
improvements at the City-owned Orange Memorial Park and pay the costs incurred in connection
with the issuance of the Series 2022A Bonds.
The City reported all enterprise funds as major funds in the accompanying financial statements.
The enterprise funds are:
Sewer Enterprise Fund – Accounts for user charges and debt proceeds supporting the operation,
maintenance, and capital expansion of the wastewater collection and treatment system.
Parking District Fund – Accounts for meter and parking permit fees used to acquire and
maintain parking facilities.
Storm Water Fund – Accounts for user charges sustaining the Storm Water Management
Program mandated by state and federal authorities.
The City also reports the following fund types:
Internal Service Funds – These funds account for City services, self insurance, health and
retirement benefits, and equipment replacement; all of which are provided to other departments
on a cost-reimbursement basis.
Fiduciary Funds – The Fiduciary fund financial statements normally include a Statement of Net
Position and a Statement of Changes in Fiduciary Net Position. The financial activities of the
funds are excluded from the government-wide financial statements. The City’s fiduciary funds
represent a private purpose trust fund and custodial funds. The Successor Agency Private-
Purpose Trust Fund accounts for the accumulation of resources to be used for payments at
appropriate amounts and times in the future. Custodial funds are used to account for assets held
by the City on behalf of other agencies for other purposes. The City’s Custodial Funds includes
the Employee Deferred Comp Trust Oversight Fund and the Community Facilities District 2021-
01, which accounted for payments of special assessment bonds.
56 319
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
F. Basis of Accounting
The government-wide, proprietary, fiduciary, and discretely presented component unit financial
statements are reported using the economic resources measurement focus and the full accrual
basis of accounting. Revenues are recorded when earned and expenses are recorded at the time
liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Under this method, revenues are recognized when
measurable and available. The City considers all revenues reported in the governmental funds to
be available if the revenues are collected within sixty days after year-end. Expenditures are
recorded when the related fund liability is incurred, except for principal and interest on long-term
debt, including lease liabilities, claims and judgments, and compensated absences, which are
recognized as expenditures to the extent they have matured. General capital asset acquisitions,
including entering into contracts giving the City the right to use leased assets, are reported as
expenditures in governmental funds. Proceeds from long-term debt and financing through leases
are reported as other financing sources.
Those revenues susceptible to accrual are property and sales taxes, certain intergovernmental
revenues, interest revenue, licenses and permits, charges for services, fines and forfeitures. Sales
taxes collected and held by the state at year end on behalf of the City are also recognized as
revenue. Other receipts and taxes are recognized as revenue when the cash is received.
Non-exchange transactions, in which the City gives or receives value without directly, receiving
or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the
accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or
assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in
which all eligibility requirements have been satisfied. Under the terms of grant agreements, the
City may fund certain programs with a combination of cost-reimbursement grants, categorical
block grants, and general revenue. Thus, both restricted and unrestricted net position may be
made available to finance program expenditures. The City’s policy is to first apply restricted
grant resources to such programs, followed by general revenues if necessary.
The City considers restricted shared state revenues such as gasoline taxes and public safety sales
taxes, restricted locally imposed transportation sales taxes, fines, forfeitures, licenses, permits,
charges for services, and program grants as program revenues.
57 320
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. Budgets, Budgetary Accounting, and Encumbrances
The City is not legally required to budget any of its funds, but does so to enhance City
management's effectiveness in their financial planning efforts and to enhance control over the
City's operations. Budgets are adopted on a modified accrual basis, except for encumbrances and
for the Capital Improvement Fund. Encumbrances are considered expenditures in the year of the
purchase order issuance. All Capital Projects Funds are adopted on a multi-year project basis
with unexpended and unencumbered budgets reappropriated in the following year. The City
operates under the general laws of the State of California (the State) and annually adopts a budget
effective July 1 for the ensuing fiscal year for the General fund; Special Revenue funds, except
the American Recovery Plan Act Special Revenue Fund, Developer Contributions Special
Revenue Fund, Supplemental Law Enforcement Services Special Revenue Fund, City Programs
Special Revenue Fund, and Affordable Housing Trust Special Revenue; Capital Projects Funds;
and Enterprise funds.
The budget is adopted by the City Council and controlled at the department level for the General
Fund and at the fund level or lower for all other funds with adopted budgets. From the effective
date of the budget, the amounts stated therein as proposed expenditures become appropriations to
the various City departments. The City Council may amend the budget by resolution during the
fiscal year. The department heads may authorize transfers within one object category within the
same department within a fund. The City Manager may authorize transfers between object
categories and departments within a fund.
All appropriations lapse at year-end, except for capital projects and encumbrances. Original
adopted budgets and final amended budgets are presented in the basic financial statements.
Supplementary budget appropriations were necessary during the year ended June 30, 2022.
Encumbrance accounting, under which, purchase orders, contracts and other commitments for the
expenditure of funds are recorded in order to reserve that portion of the applicable appropriation,
is employed as an extension of the budgetary process. Encumbrances outstanding at year-end are
reported as a component of fund balances since they do not constitute expenditures or liabilities.
Encumbrances are reappropriated in the following year.
The budgetary comparison statements present comparisons of the legally adopted budget with
actual charges to appropriations on a budgetary basis. In order to provide a meaningful
comparison, the actual charges on a budgetary basis include encumbrances, which is a basis that
differs significantly from those used to present financial statements in conformity with generally
accepted accounting principles.
Certain indirect costs are included in program expenses reported for individual functions and
activities.
58 321
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
H.Expenditures in Excess of Appropriations – The City’s General Fund had the following
departmental expenditures in excess of appropriations and other funds had expenditures in excess
of appropriations for the year ended June 30, 2022:
Expenditures in
Excess of Budget
(Non GAAP
Legal Basis)
General Fund:
City Attorney $228,408
Non-departmental 1,211,827
Fire 3,083,113
Police 540,747
Public Works 347,536
Parks and Recreation 548,148
Non-Major Funds:
Community Development Block Grant Special Revenue Fund 216,389
Maintenance Districts Special Revenue Fund 10,617
Supplemental Law Enforcement Services Special Revenue Fund 64,536
City Programs Special Revenue Fund 1,049,683
Sufficient resources were available within each fund to finance these excesses.
I. Cash Equivalents – For purposes of the statement of cash flows, the City considers all highly
liquid investments (including all restricted assets) with maturity of three months or less when
purchased to be cash equivalents. The City maintains a cash and investment pool that is available
for use by all funds. As the proprietary funds' share of this pool is readily available when needed,
such share is also considered to be cash equivalent. Deposit assets in the proprietary funds are
related to insurance and benefits and are not considered cash equivalents for purposes of the
statement of cash flows.
J.Inventory and Prepaid Items – consist of consumable supplies. Inventory is stated at cost (first-
in, first-out method). The costs are recorded as expenditures at the time the individual inventory
or prepaid item is consumed. Reported inventory and prepaid items are equally offset by a fund
balance reservation, which indicates that they do not constitute "available spendable resources"
even though they are a component of net current assets.
K.Capital Assets – Donated capital assets, donated works of art and similar items, and capital assets
received in a service concession arrangement are valued at acquisition value. All other capital assets
are valued at historical cost or estimated historical cost if actual historical cost is not available
except for intangible right to‐use lease assets, the measurement of which is discussed in Note 10
below.
The purpose of depreciation is to spread the cost of capital assets equitably among all users over
the life of these assets. The amount charged to depreciation expense each year represents that
year’s pro rata share of the cost of capital assets.
59 322
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Depreciation is provided using the straight line method which means the cost of the asset is
divided by its expected useful life in years and the result is charged to expense each year until the
asset is fully depreciated. The City and Authority have assigned the useful lives listed below to
capital assets and right to use leased building:
Buildings 50 years
Clean water facilities and transmission lines 40 years
Improvements 30 years
Machinery and equipment 5-20 years
Furniture and fixtures 12 years
Infrastructure 20-40 years
Right to use leased building 30 years
Major outlays for capital assets and improvements are capitalized as projects are constructed.
The capitalization level is $20,000 for vehicles, and $100,000 for all else, including all other
equipment that is not a vehicle.
L. Vacation and Sick Pay – are accrued as earned. Upon termination, employees are paid for all
unused vacation at their current hourly rates. After five to twenty years of employment, one half
of accumulated sick leave becomes vested, up to a maximum amount as specified under labor
contract provisions. The vested portion is available for current use or, if unused, is payable at
termination or retirement.
The long-term portion of the liability for compensated absences for governmental fund type
operations is recorded as compensated absences in the government-wide financial statements. The
portion expected to be permanently liquidated is recorded in the Health and Retirement Benefits
Internal Service Fund. Proprietary fund liabilities are recorded within their respective funds.
The changes of the compensated absences were as follows:
Governmental Business-Type
Activities Activities Total
Beginning Balance $9,034,773 $876,995 $9,911,768
Additions 6,367,587 630,228 6,997,815
Payments (6,937,466)(717,151) (7,654,617)
Ending Balance $8,464,894 $790,072 $9,254,966
Current Portion $5,432,020 $589,258 $6,021,278
Compensated absences are liquidated by the fund that has recorded the liability. The long-term
portion of governmental activities compensated absences is liquidated primarily by the Health
and Retirement Benefits Internal Service Fund.
60 323
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
M. Property Tax Levy, Collection and Maximum Rates – State of California Constitution Article
XIII A provides that the combined maximum property tax rate on any given property may not
exceed 1% of its assessed value unless an additional amount for general obligation debt has been
approved by voters. Assessed value is calculated at 100% of market value as defined by Article
XIII A and may be adjusted by no more than 2% per year unless the property is sold, transferred,
or substantially improved. The State Legislature has determined the method of distribution of
receipts from a 1% tax levy among the counties, cities, school districts and other districts. The
County of San Mateo assesses properties, bills for and collects property taxes on the schedule that
follows:
Secured Unsecured
Valuation/lien dates January 1 January 1
Levy dates July 1 July 1
Due dates (delinquent as of) 50% on November 1 (December 10) July 1 (August 31)
50% on February 1 (April 10)
The term "unsecured" refers to taxes on personal property other than land and buildings. These
taxes are secured by liens on the property being taxed.
Property taxes levied are recorded as revenue and receivables when they are collected during the
fiscal year of levy or within 60 days of year-end.
N. Properties held for redevelopment – is stated at the lower of historical cost or net realizable value
(equal to agreed upon sales price if a disposition and development agreement has been reached
with a developer).
O. Unbilled Services – for the Sewer Rental Enterprise Fund are accrued at year-end.
P. Deferred Outflows/Inflows of Resources – In addition to assets, the statement of financial
position or balance sheet reports a separate section for deferred outflows of resources. This
separate financial statement element, deferred outflows of resources, represents a consumption of
net assets or fund balance that applies to a future period(s) and so will not be recognized as an
outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of
financial position or balance sheet reports a separate section for deferred inflows of resources.
This separate financial statement element, deferred inflows of resources, represents an acquisition
of net assets or fund balance that applies to a future period(s) and so will not be recognized as an
inflow of resources (revenue) until that time.
61 324
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Q. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The City
categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation
techniques used to measure fair value into three levels based on the extent to which inputs used in
measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable
for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the
fair value hierarchy, the measurement is considered to be based on the lowest priority level input
that is significant to the entire measurement.
R. Use of Estimates – The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent asset and liabilities at the
dates of the financial statements and the reported amounts of revenues and expenditures/expenses
during the reporting periods. Actual results could differ from those estimates.
S. New and Renamed Funds
In fiscal year 2021-2022, the City established the following funds:
The Capital Improvement Orange Memorial Park Capital Projects Fund accounts for expenditures
associated with the acquisition, construction and installation of certain capital improvements at
the City-owned Orange Memorial Park and pay the costs incurred in connection with the issuance
of the Series 2022A Bonds.
The Library Impact Capital Projects Fund accounts for citywide fees to provide new
development’s share of the expansion, rehabilitation and replacement of library facilities and
collections to accommodate the increased demand for library services caused by future
development
The Oyster Point CFD Custodial Fund accounts for Community Facilities District No. 2021-01
special assessment collections and debt service payments.
The 2020 A Bonds Debt Service Fund was renamed the Debt Service Fund.
62 325
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
T. New Accounting Pronouncement
In June 2017, the Governmental Accounting Standards Board issued Statement No. 87, Leases.
The objective of this Statement is to better meet the information needs of financial statement
users by improving accounting and financial reporting for leases by governments. This Statement
increases the usefulness of governments’ financial statements by requiring recognition of certain
lease assets and liabilities for leases that previously were classified as operating leases and
recognized as inflows of resources or outflows of resources based on the payment provisions of
the contract. It establishes a single model for lease accounting based on the foundational principle
that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is
required to recognize a lease liability and an intangible right‐to‐use lease asset, and a lessor is
required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the
relevance and consistency of information about governments’ leasing activities.
A lease is defined as a contract that conveys control of the right to use another entity’s
nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an
exchange or exchange‐like transaction. Examples of nonfinancial assets include buildings, land,
vehicles, and equipment. Any contract that meets this definition should be accounted for under
the leases guidance, unless specifically excluded in this Statement.
The pronouncement became effective, and as disclosed in Note 10 to the financial statements
required a prior period restatement for the cumulative effect on the financial statements. The
beginning balances of leases receivable and deferred inflows of resources related to leases for the
City were $15,344,334 as of July 1, 2021 and restated and increased the balances in that amount,
and the net effect on beginning net position and fund balance was zero. In addition, the
Conference Center Authority’s beginning balances of right to use leased assets and the lease
liability were increased and restated in the amounts of $1,948,783 and $2,748,483, respectively,
and the net position was reduced and restated in the amount of $799,700 as of July 1, 2021. See
the Leases disclosure in Note 10.
NOTE 2 – CASH AND INVESTMENTS
The City’s goal is to invest at the maximum yield, consistent with safety and liquidity, while
individual funds can process payments for expenditures at any time.
A. Policies
The City invests in individual investments and in investment pools. Individual investments are
evidenced by specific identifiable securities instruments, or by an electronic entry registering the
owner in the records of the institution issuing the security, called the book entry system. In order
to increase security, the City employs the Trust Department of a bank as the custodian of certain
City managed investments, regardless of their form.
California Law requires banks and savings and loan institutions to pledge government securities
with a fair value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a
fair value of 150% of the deposit, as collateral for these deposits. Under California Law this
collateral is held in a separate investment pool by another institution in the City’s name and
places the City ahead of general creditors of the institution.
63 326
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
The City’s investments are carried at fair value, as required by generally accepted accounting
principles. The City adjusts the carrying value of its investments to reflect their fair value at each
fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
B. Classification
Cash and investments as of June 30, 2022 are classified in the financial statements as shown
below, based on whether or not their use is restricted under the terms of City debt instruments or
agency agreements.
Financial Statement Presentation:
Statement of Net Position:
City of South San Francisco:
Cash and investments available for operations $264,820,152
Restricted cash and investments 144,489,758
Total Primary Government cash and investments 409,309,910
Statement of Fiduciary Assets:
Cash and investments available for operations 1,837,374
Restricted cash and investments 40,101,280
Total Fiduciary cash and investments 41,938,654
Conference Center:
Cash and investments available for operations 3,374,045
Total South San Francisco
Conference Center cash and investments 3,374,045
Total cash and investments $454,622,609
The City does not allocate investments by fund. Each proprietary fund’s portion of Cash and
Investments Available for Operations is in substance a demand deposit available to finance
operations, and is considered a cash equivalent in preparing the statement of cash flows.
64 327
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
C. Investments Authorized by the California Government Code and the City’s Investment Policy
The City’s investment policy and the California Government Code allow the City to invest in the
following provided the credit ratings of the issuers are acceptable to the City and approved
percentages and maturities are not exceeded. The table below also identifies certain provisions of
the California Government Code, or the City’s Investment Policy where it is more restrictive:
Minimum Maximum Maximum
Maximum Credit Percentage Investment
Authorized Investment Type Maturity Quality (A) of Portfolio in One Issuer
U.S. Treasury Securities 5 years N/A No Limit No Limit
Federal Agency or U.S.
Sponsored Enterprise Obligations 5 years N/A No Limit 25%
Supranational Obligations 5 years AA 30% 10%
Corporate Medium-Term Notes 5 years A 30% 5%
Asset-Backed Securities 5 years AA 20% 5%
Commercial Paper 270 days A1,P1 25% 5%
Negotiable Certificates of Deposit 5 years A-1 or A 30%5%
Repurchase Agreements 90 days AA No Limit No Limit
Local Agency Investment Fund (LAIF) Upon Demand N/A $75 million No Limit
Money Market Mutual Funds N/A AAAm 20% 10%
Rating System, or its equivalent.
(A) The City's Investment Policy includes credit ratings provided by Standard and Poor's Investment
65 328
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City and the Successor Agency to the former Redevelopment Agency must maintain required
amounts of cash and investments with trustees or fiscal agents under the terms of certain debt
issues. These funds are unexpended bond proceeds or are pledged as reserves to be used if the
City or Successor Agency fail to meet its obligations under these debt issues. The California
Government Code requires these funds to be invested in accordance with City ordinance bond
indentures or State statute. The table below identifies the investment types that are authorized for
investments held by fiscal agents. The table also identifies certain provisions of these debt
agreements:
Minimum Maximum
Maximum Credit Percentage
Authorized Investment Type Maturity Quality of Portfolio
U.S. Treasury Obligations N/A N/A No Limit
Federal Agency or U.S. Government
Sponsored Enterprise Obligations N/A N/A No Limit
Federal Housing Administration Debentures N/A N/A No Limit
Bankers Acceptances 30 days A-1 or A-2 No Limit
Commercial Paper 270 days A1,P1 No Limit
Negotiable Certificates of Deposit 5 years A-1 or A No Limit
Guaranteed Investment Agreements N/A A1,P1 No Limit
Municipal Obligations N/A Aaa No Limit
State Obligations N/A A2 No Limit
Money Market Mutual Funds N/A AAAm No Limit
Repurchase Agreements 90 days AA No Limit
Local Agency Investment Fund (LAIF) Upon Demand N/A No Limit
E. Investments Authorized by the Authority
The City of South San Francisco Conference Center Authority follows the California Government
Code which authorizes an agency to invest in their own bonds, certain time deposits, obligations
of the U.S. Treasury, agencies and instrumentalities, commercial paper, bankers’ acceptances
with maturities not to exceed 270 days, and medium-term notes issued by corporations operating
within the U.S., commercial paper rated P-1 or higher by Moody’s or A-1 by Standard & Poor’s
commercial paper record, repurchase agreements of obligations of the U.S. Government or its
agencies for a term of one year or less and the Local Agency Investment Fund.
66 329
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
F. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity
of its fair value to changes in market interest rates. The City also manages its interest rate risk is
by holding most investments to maturity, thus reversing unrealized market gains and losses.
Information about the sensitivity of the fair values of the City’s investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by the following
table that shows the distribution of the City’s investments by maturity or earliest call date:
Remaining maturity
Less than One to Five
1 year Years Total
City and Fiduciary:
U.S. Treasury Notes $2,099,668 $52,601,590 $54,701,258
Federal Agency Securities 8,459,753 33,990,359 42,450,112
Local Agency Investment Fund 199,044,480 199,044,480
Money Market Funds 58,100,862 58,100,862
Corporate Medium Term Notes 499,974 46,106,533 46,606,507
Negotiable Certificates of Deposit 3,989,919 3,989,919
Asset-Backed Securities 212,664 22,608,817 22,821,481
Supranational Obligations 499,666 6,188,331 6,687,997
South San Francisco Conference Center:
Local Agency Investment Fund 2,963,633 2,963,633
Total Investments $275,870,619 $161,495,630 437,366,249
Cash in Banks and on Hand - City of South San Francisco 16,845,948
Cash in Banks and on Hand - South San Francisco Conference Center 410,412
Total Cash and Investments $454,622,609
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by
California Government Code Section 16429 under the oversight of the Treasurer of the State of
California. The City reports its investment in LAIF at the fair value amount provided by LAIF,
which is the same as the value of the pool share. The balance is available for withdrawal on
demand, and is based on the accounting records maintained by LAIF, which are recorded on an
amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per
month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75
million and at least 24 hours advance notice for withdrawals of $10 million or more. Bond
proceeds accounts are subject to a one‐time deposit with no cap and are set up with a monthly
draw down schedule. Included in LAIF’s investment portfolio are collateralized mortgage
obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds,
and floating rate securities issued by federal agencies, government-sponsored enterprises, United
States Treasury Notes and Bills, and corporations. At June 30, 2022, these investments have an
average maturity of 311 days.
Money market funds are available for withdrawal on demand and as of June 30, 2022 have an
average maturity of 43 to 49 days.
67 330
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
G. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the actual rating as of June 30, 2022, for each
of the Primary Government’s investment types as provided by Moody’s investment rating system,
except as noted:
Investment Type Aaa Aaa-mf Aa1-Aa3 A1-A3 P-1 Total
City and Fiduciary:
Federal Agency Securities $42,450,112 $42,450,112
Money Market Funds $58,100,862 58,100,862
Corporate Medium Term Notes 2,130,720 $7,229,229 $37,246,558 46,606,507
Negotiable Certificates of Deposit $3,989,919 3,989,919
Asset-Backed Securities 12,183,362 12,183,362
Supranational Obligations 6,687,997 6,687,997
Totals $63,452,191 58,100,862$ 7,229,229$ 37,246,558$ 3,989,919$ 170,018,759
City and Fiduciary:
Not rated:
Asset-Backed Securities 10,638,119 (A)
Local Agency Investment Fund 199,044,480
Exempt from credit rating disclosure:
U.S. Treasury Notes 54,701,258
Not rated:
Local Agency Investment Fund 2,963,633
Total Investments $437,366,249
South San Francisco Conference Center:
(A) Investments are not rated by Moody’s, but are rated AAA by Standard and Poor’s or Fitch investment
rating systems.
68 331
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 2 – CASH AND INVESTMENTS (Continued)
H. Fair Value Hierarchy
The City categorized its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure fair value of assets. Level 1 inputs are quoted prices in an active market for identical
assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant
unobservable inputs.
The following is a summary of the fair value hierarchy of the fair value of investments of the City
as of June 30, 2022:
Level 2 Total
Investments by Fair Value Level:
City and Fiduciary:
U.S. Treasury Notes $54,701,258 $54,701,258
Federal Agency Securities 42,450,112 42,450,112
Corporate Medium Term Notes 46,606,507 46,606,507
Negotiable Certificates of Deposit 3,989,919 3,989,919
Asset Backed Securities 22,821,481 22,821,481
Supranational Obligations 6,687,997 6,687,997
Totals $177,257,274 177,257,274
Investments Measured at Amortized Cost:
City and Fiduciary:
Money Market Mutual Funds 58,100,862
Investments Exempt from Fair Value Hierarchy:
City and Fiduciary:
Local Agency Investment Fund 199,044,480
South San Francisco Conference Center:
Local Agency Investment Fund 2,963,633
Total Investments $437,366,249
All Investments classified in Level 2 of the fair value hierarchy are valued using various pricing
techniques maintained by Interactive Data Pricing, including benchmark curves, sector groupings
and matrix pricing. These prices are obtained from various pricing sources by the City’s
investment manager. Money market funds were reported at amortized cost.
69 332
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 3 – CAPITAL ASSETS
A. Capital Asset Changes – Changes in capital assets during the fiscal year consist of:
Balance 6/30/2021
Additions and
Adjustments
Retirements and
Adjustments Transfers Balance 6/30/2022
Governmental activities
Capital assets not being depreciated:
Land $66,729,001 $5,520,422 $72,249,423
Construction in Progress 160,376,869 86,212,054 ($4,730,560) 241,858,363
Total capital assets not being depreciated 227,105,870 91,732,476 (4,730,560) 314,107,786
Capital assets being depreciated:
Buildings and Improvements 97,370,638 97,370,638
Infrastructure - Streets 200,865,274 4,730,560 205,595,834
Infrastructure - Storm Drains 8,927,492 8,927,492
Infrastructure - Traffic Control Devices 12,591,370 12,591,370
Equipment and Vehicle 7,390,599 7,390,599
Furniture and Fixtures 2,614,215 2,614,215
Total capital assets being depreciated 329,759,588 4,730,560 334,490,148
Less accumulated depreciation for:
Buildings and Improvements (44,877,725) (2,572,139) (47,449,864)
Infrastructure - Streets (116,531,398) (5,153,778) (121,685,176)
Infrastructure - Storm Drains (3,980,061) (204,500) (4,184,561)
Infrastructure - Traffic Control Devices (4,729,238) (510,781) (5,240,019)
Equipment and Vehicle (6,683,993) (83,154) (6,767,147)
Furniture and Fixtures (1,891,508) (87,167) (1,978,675)
Total accumulated depreciation (178,693,923) (8,611,519) (187,305,442)
Net Governmental Fund
Capital Assets Being Depreciated 151,065,665 (8,611,519)4,730,560 147,184,706
Internal Service Fund Capital Assets
Capital assets being depreciated:
Equipment and Vehicle 17,138,859 424,683 ($185,212) 17,378,330
Accumulated depreciation (12,186,122) (967,562) 177,911 (12,975,773)
Net Internal Service Fund Capital Assets
Being Depreciated 4,952,737 (542,879) (7,301) 4,402,557
Governmental activities capital assets, net $383,124,272 $82,578,078 ($7,301) $465,695,049
Total capital assets not being depreciated $227,105,870 $91,732,476 ($4,730,560) $314,107,786
Net capital assets being depreciated 156,018,402 (9,154,398) ($7,301) 4,730,560 151,587,263
Governmental activities capital assets, net $383,124,272 $82,578,078 ($7,301) $465,695,049
70 333
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 3 – CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2021 Additions Retirements Transfers June 30, 2022
Business-type activities
Capital assets, not being depreciated:
Land $794,587 $794,587
Construction in Progress 68,932,413 $15,051,042 83,983,455
Total capital assets not being depreciated 69,727,000 15,051,042 84,778,042
Capital assets being depreciated:
Buildings and Improvements 80,173,059 80,173,059
Clean Water Facilities and Lines 79,862,094 79,862,094
Infrastructure - Storm Drains 6,216,365 6,216,365
Infrastructure - Streets 7,377,546 7,377,546
Equipment and Vehicle 18,455,546 18,455,546
Furniture and Fixtures 31,154 31,154
Total capital assets being depreciated 192,115,764 192,115,764
Less accumulated depreciation for:
Buildings and Improvements (22,816,048) (2,056,389)(24,872,437)
Clean Water Facilities and Lines (35,054,212) (1,936,594)(36,990,806)
Infrastructure - Storm Drains (1,570,732) (187,980)(1,758,712)
Infrastructure - Streets (2,469,401) (209,570)(2,678,971)
Equipment and Vehicle (13,466,816) (716,906)(14,183,722)
Furniture and Fixtures (31,154)(31,154)
Total accumulated depreciation (75,408,363) (5,107,439)(80,515,802)
Net capital assets being depreciated 116,707,401 (5,107,439)111,599,962
Business-type activities capital assets, net $186,434,401 $9,943,603 $196,378,004
Balance
June 30, 2021 Balance
(as restated) Additions Retirements June 30, 2022
Component Unit:
South San Francisco Conference Center
Depreciable:
Buildings and Improvements $10,909,288 $10,909,288
Furniture and Fixtures 950,814 ($18,421) 932,393
Machinery and Equipment 582,722 $40,220 (23,227) 599,715
Total Depreciable 12,442,824 40,220 (41,648) 12,441,396
Right of Use Assets:
Leased Land 1,948,783 1,948,783
14,391,607 40,220 (41,648) 14,390,179
Less accumulated depreciation and
amortization
Depreciable (9,904,838) (592,036) 41,648 (10,455,226)
Leased Land (278,398) (278,398)
(9,904,838) (870,434) 41,648 (10,733,624)
Component Unit Capital Assets, Net $4,486,769 ($830,214) $3,656,555
71 334
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 3 – CAPITAL ASSETS (Continued)
B. Capital Asset Contributions – Some capital assets may have been acquired using federal and
State grant funds, or were contributed by developers or other governments. Contributed capital
assets are valued at their estimated acquisition value on the date contributed. Generally accepted
accounting principles require that these contributions be accounted for as revenues at the time the
capital assets are contributed.
C. Depreciation Allocation – Depreciation expense is charged to functions and programs based on
their usage of the related assets. The amounts allocated to each function or program are as
follows:
Governmental Activities
Governmental functions
General government $729,438
Fire 316,406
Police 64,491
Public works 6,815,642
Parks and recreation 566,692
Library 67,241
Economic and community development 51,609
Total Governmental Functions 8,611,519
Internal Service Funds 967,562
Total Governmental Activities $9,579,081
Business-Type Activities
Sewer Enterprise $4,814,962
Parking District 252,638
Storm Water 39,839
Total Business-Type Activities $5,107,439
NOTE 4 – INTER-FUND TRANSACTIONS
A. Internal Balances
Internal balances are presented in the entity-wide financial statements only. They represent the
net interfund receivables and payables remaining after the elimination of all such balances within
governmental and business-type activities.
72 335
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 4 – INTER-FUND TRANSACTIONS (Continued)
B. Inter-Fund Receivables and Payables
Amounts due to or due from other funds reflect inter-fund balances for services rendered or short-
term loans expected to be repaid in the next fiscal year.
Due From Other Fund Due to Other Fund Amount
General Fund Capital Improvement Capital Projects Fund $430,000
Storm Water Enterprise Fund 630,000
Community Development Block Grant Special Revenue Fund 210,000
$1,270,000
C. Transfers
Transfers between funds during the fiscal year ended June 30, 2022 were as follows:
FROM FUND (OUT) TO FUND (IN)AMOUNT
General Fund Capital Improvements Capital Projects Fund $3,642,829
Capital Infrastructure Reserve Capitol Projects Fund 8,500,000
Capital Improvements Civic Campus Capital Projects Fund 102,542
Non-Major Governmental Funds 8,287,833
Storm Water Enterprise Fund 250,000
Internal Service Fund 452,406
American Rescue Plan Act Special Revenue Fund General Fund 2,560,000
Capital Improvement Capital Projects Fund 84,259
Capital Improvements Capital Projects Fund Non-Major Governmental Funds 2,362
East of 101 Sewer Impact Fees Capital Projects Fund Sewer Enterprise Fund 107,818
Traffic Impact Fees Capital Projects Fund Capital Improvement Capital Projects Fund 5,929,676
Child Care Impact Fees Capital Projects Fund Capital Improvement Capital Projects Fund 99,499
Capital Infrastructure Reserve Capital Projects Fund General Fund 1,104,832
Low and Moderate Income Housing Asset Special Revenue Fund 2,784
Capital Improvement Capital Projects Fund 1,107,190
Non-Major Governmental Funds 34,464
Sewer Enterprise Fund 234,720
Parking District Enterprise Fund 1,440
Storm Water Enterprise Fund 36,720
Internal Service Fund 619,440
Non-Major Governmental Funds General Fund 1,098,897
Capital Improvement Capital Projects Fund 3,606,224
Sewer Enterprise Fund 147,072
Storm Water Enterprise Fund 698,541
Internal Service Fund 60,459
Sewer Enterprise Capital Improvement Capital Projects Fund 57,076
Total $38,829,083
73 336
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 5 – LONG-TERM DEBT
A. Current Year Transactions and Balances
A summary of governmental and business-type activities transactions for the fiscal year ended
June 30, 2022 follows:
Authorized
and Balance at Balance at Current
Issued June 30, 2021 Additions Retirement June 30, 2022 Portion
Governmental Activities
Lease Revenue Bonds:
2020A Police Station Project, 4.00 to 5.00% (1) $43,905,000 $42,970,000 $980,000 $41,990,000 $1,030,000
Plus: Unamortized bond premium 9,483,824 379,353 9,104,471
2021A Community Civic Campus Project, 4.00% (2) 86,410,000 86,410,000 2,210,000 84,200,000 2,155,000
Plus: Unamortized bond premium 18,116,565 724,663 17,391,902
2022A Orange Memorial Park Project, 4.00 to 5.25% (3) 65,420,000 $65,420,000 65,420,000
Plus: Unamortized bond premium 6,686,317 6,686,317
Total Lease Revenue Bonds 195,735,000 156,980,389 72,106,317 4,294,016 224,792,690 3,185,000
Direct Borrowing:
2007 Loans Payable to the Successor Agency (4) 3,595,152 1,445,000 2,150,152
Leases Financings (5):
2013 Fire Truck 285,529 140,892 144,637 144,637
Total Leases Financings 285,529 140,892 144,637 144,637
Total Direct Borrowing 3,880,681 1,585,892 2,294,789 144,637
Net Governmental Long-Term Debt $195,735,000 $160,861,070 $72,106,317 $5,879,908 $227,087,479 $3,329,637
Business-Type Activities
Revenue Bonds:
2005 Water and Wastewater Revenue Bonds, $6,000,000 $2,325,000 $345,000 $1,980,000 $360,000
2.75 to 4.75%, due 04/30/26 (6)
Direct Borrowing:
1999 State Water Resources Loan, 2.6%, due 8/1/22 (7) 47,721,252 6,300,086 3,109,618 3,190,468 3,190,468
2004 State Water Resources Loan, 2.5%, due 1/1/27 (7) 21,258,529 6,513,692 1,239,209 5,274,483 1,270,190
2008 State Water Resources Loan, 2.4%, (8) 9,164,505 4,179,619 480,127 3,699,492 491,650
2018 State Water Resources Loan, 1.8% (9) 53,403,000 43,487,062 $5,147,945 48,635,007
Total Direct Borrowing 131,547,286 60,480,459 5,147,945 4,828,954 60,799,450 4,952,308
Net Business-Type Long-Term Debt $137,547,286 $62,805,459 $5,147,945 $5,173,954 $62,779,450 $5,312,308
(1) 2020A Lease Revenue Bonds – In February 2020, the City of South San Francisco Public
Facilities Financing Authority entered into a $43.9 million lease agreement to finance costs of the
acquisition, construction, and installation of certain capital improvements constituting the new
City police station, located within the City’s new Civic Center Campus, and related
improvements, facilities and equipment, and pay the costs incurred in connection with the
issuance of the Series 2020A Bonds. The Series 2020A Bonds are equally and ratably payable
from base rental payments to be made by the City for the right to use certain real property
consisting of a City-owned parking garage and a City-owned park. The lease agreement contains
provisions that in an event of default, the lessor may exercise any and all remedies available to it
under the lease agreement, including the right to enforce the terms of the lease.
74 337
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 5 – LONG-TERM DEBT (Continued)
(2) 2021A Lease Revenue Bonds – In May 2021, the City of South San Francisco Public
Facilities Financing Authority entered into a $86.4 million lease agreement to finance costs of the
acquisition, construction, and installation of certain capital improvements constituting a new City
library, council chamber, parks and recreation facilities, and a community theater to be located
within the City’s new Civic Center Campus, street and roadway improvements located within the
City, solar equipment to be located on City property, and related improvements, facilities and
equipment, and pay the costs incurred in connection with the issuance of the Series 2021A Bonds.
The Series 2021A Bonds are equally and ratably payable from base rental payments to be made
by the City for the right to use certain real property consisting of the same City-owned parking
garage and City-owned park pledged under the 2020A Bonds and six additional properties,
including the property on which the first two phases of the Community Civic Campus project is
being constructed. The lease agreement contains provisions that in an event of default, the lessor
may exercise any and all remedies available to it under the lease agreement, including the right to
enforce the terms of the lease.
(3) 2022A Lease Revenue Bonds – In May 2022, the City of South San Francisco Public
Facilities Financing Authority entered into a $65.4 million lease agreement to finance costs of the
acquisition, construction and installation of certain capital improvements of the City to be located
at the City-owned Orange Memorial Park and pay the costs incurred in connection with the
issuance of the Series 2022A Bonds. The Series 2022A Bonds are equally and ratably payable
from base rental payments to be made by the City for the right to use certain real property
consisting of the same properties pledged under the 2021A Bonds. The lease agreement contains
provisions that in an event of default, the lessor may exercise any and all remedies available to it
under the lease agreement, including the right to enforce the terms of the lease.
(4) As of June 30, 2022, the Oyster Point Improvements Impact Fund owed the Successor Agency
(formerly the Merged Redevelopment Project Area Capital Project Fund) for developer fees in the
amount of $3,595,152 for the Flyover and Hookramps Projects that were completed in prior years.
The outstanding balance will be paid off from the future developer fees. With the dissolution of the
Agency effective January 31, 2012, the Successor Agency assumed the asset which the City is to
repay. This payable is recorded as a long-term obligation (see also Note 14). Prior to the dissolution
of all Redevelopment Agencies in California by the State, the former Redevelopment Agency
(Agency) advanced $12,176,207 to the Oyster Point Improvement Impact Fee Capital Projects Fund
(the Oyster Point Fund). The impact fees are collected according to a fee methodology adopted
under the terms of AB 1600. The fees are assessed against commercial development in a specific
geographic area that is primarily east of Highway 101 to repay the former Agency for the funds it
advanced to the Oyster Point Fund to pay for freeway interchange improvements at Highway 101
and Oyster Point Blvd, and are assessed per an adopted Engineering report's formula that measures
each new development's impact on the area's trip traffic. While the former Agency advanced the
funds, the impact fee was put in place specifically to charge future developers for their share of
traffic trips generated prior to the construction of the improvements. When the Agency was
dissolved, the Successor Agency, and therefore, all local taxing entities, are entitled to receive
future Oyster Point Impact fees collected by the City from developers. Future developers, not the
City of South San Francisco, are legally obligated to pay the future fees until the liability owed to
the Successor Agency is paid off as long as the fee continues to be levied and is in place. The
repayment has significantly slowed since 2007, as development has subsided and fees assessed have
therefore dropped. Management believes it may take 10-30 years or more before the Successor
Agency is fully paid back.
75 338
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 5 – LONG-TERM DEBT (Continued)
(5) The City has entered into long-term lease financing agreements with various financing
agencies. Under these leases, all leased assets shall be distributed to the City at the end of the
lease terms and shall thereafter remain the sole property of the City. Therefore, these leases have
been recorded at the present value of the future minimum lease payments at the date of inception
of the lease, and the corresponding assets have been included in the Statement of Net Position as
appropriate. Lease financing payments are made from revenues of the Equipment Replacement
Internal Service Fund and the General Fund. The lease agreements contain provisions that in an
event of default, the lessor may (a) seize the properties, (b) sell or lease the properties or (c) exercise
any and all remedies available to it under applicable law, including the right to enforce the terms of
the lease, recover damages from the breach of the lease, and rescind the lease as to any portion of or
all of the properties.
(6) On October 25, 2005, the California Statewide Communities Development Authority issued
2005D Water and Wastewater Revenue Bonds. The City participated in the pooled bond sale
and the City’s portion of the debt is $6,000,000. Proceeds were used to finance sewer system
capital improvement.
The principal payments on the debt commenced in October 2006 and principal is due each
October 1. The final principal payment is due on October 1, 2026. Interest payments ranging
from the rates of 2.75% to 4.75% are payable semi-annually each April 1 and October 1.
As of June 30, 2022, the City is in compliance with the provisions of Article VI of the Installment
Purchase Agreement associated with the 2005D Bonds.
The 1999 and 2004 State Water Resources Loans and the 2005D Water and Wastewater Revenue
Bonds are secured by a pledge of net revenues of the City’s Sewer Enterprise Fund. Net
Revenues available for debt service amounted to $8.3 million which represented coverage of 1.62
over the $5,126,802 in total debt service.
(7) The two loans were authorized by the State Water Resources Control Board (SWRCB) to
improve and expand the City’s wastewater treatment plant. Loan proceeds were issued as the
projects progressed and debt service payments commenced one year after project completion. The
loan agreements include provisions that in an event of default, all principal payments shall be
immediately due and payable, interests on all amounts owed shall be paid at the highest legal rate,
any additional payments shall be made and SWRCB shall enforce its rights under the agreements
by any judicial proceeding, whether in law or equity.
(8) 2008 State Water Resources Control Board Loan – In November 2007, the City approved
the $11.8 million loan agreement with the SWRCB to finance the City’s Wet Weather Program
project. Under the terms of the contract, the City has agreed to repay $11.8 million to the State in
exchange for receiving $9.2 million in proceeds to be used to fund the Project. The difference
between the repayment obligation and proceeds amounted to $2.6 million and represents in-
substance interest on the outstanding balance. Debt service payments commenced on August 15,
2009.
76 339
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 5 – LONG-TERM DEBT (Continued)
(9)2018 State Water Resources Control Board Loan – In September 2018, the City entered into a
$53.4 million loan agreement with the SWRCB to finance the South San Francisco/San Bruno’s
Water Quality Control Plant Wet Weather and Digester Project. A portion of this amount, $4 million,
is anticipated to be forgiven on the date of completion of construction. For the remaining $49.4
million, under the terms of the loan agreement the City has agreed to repay $59.2 million to the
State. The difference between the repayment obligation and proceeds amounted to $9.8 million
and represents in-substance interest on the outstanding balance.
As of June 30,2022, the City has drawn down $48.6 million from SWRCB, with the remaining
balance of $4.8 million expected to be drawn down in fiscal year 2023. There was no debt service
payment required in fiscal year 2022, with the first debt service payment due in fiscal year ending
2024. Future debt service is expected to average $3 million per year through fiscal year 2043.
In the event default has occurred, the City shall, upon demand, immediately accelerate the
payment of all principal owed under this loan agreement, if any, which shall be immediately due
and payable; pay interest at the highest legal rate on all amounts owed; and pay any additional
payments as defined in the loan agreement.
The 2008 and 2018 loans are secured by a pledge of sewer service charge revenues of the City’s
Sewer Enterprise Fund. Sewer service charge revenues available for debt service amounted to
$22.6 million which represented coverage of 42 over the $538,642 in debt service.
B. Debt Service Requirements
Annual debt service requirements are shown below for all long-term debt with specified
repayment terms:
Governmental Activities Business-Type Activities
For the Year Lease Revenue Bonds
2005 Water and
Wastewater Revenue Bonds
Ended June 30 Principal Interest Principal Interest
2023 $3,185,000 $8,280,065 $360,000 $90,000
2024 3,320,000 8,205,338 375,000 71,625
2025 5,170,000 8,058,737 395,000 52,375
2026 5,410,000 7,826,538 415,000 32,125
2027 5,650,000 7,580,287 435,000 10,875
2028-2032 32,225,000 33,938,388
2033-2037 39,855,000 26,306,437
2038-2042 49,280,000 16,877,788
2043-2047 47,515,000 5,414,012
191,610,000 $122,487,590 $1,980,000 $257,000
Plus: Unamortized bond premium 33,182,690
$224,792,690
77 340
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 5 – LONG-TERM DEBT (Continued)
Future debt service requirements, including interest and leases financings, but excluding the 2007
Loan payable to the Redevelopment Successor Agency and the 2018 State Water Resources Loan
at June 30, 2022, were as follows:
For the Year Governmental Activities Business-Type Activities
Ended June 30 Principal Interest Principal Interest
2023 $144,637 $2,870 $4,952,308 $266,607
2024 1,805,393 145,017
2025 1,850,025 105,421
2026 1,895,761 64,842
2027 540,574 23,253
2028-2032 1,120,382 23,621
Totals 144,637 $2,870 12,164,443 $628,761
2007 Loans Payable 2,150,152
2018 State Water Resources Loan 48,635,007
$2,294,789 $60,799,450
Direct Borrowings
Lease financing agreements are issued for the purpose of financing the construction or acquisition
of projects defined in each leasing arrangement. Projects are leased to the City for lease
payments which, together with unspent proceeds of the leasing arrangement, will be sufficient to
meet the debt service obligations of the leasing arrangement. At the termination of the leasing
arrangement, title to the project will pass to the City.
Leasing arrangements are similar to debt; they allow investors to participate in a share of
guaranteed payments which are made by the City. Because they are similar to debt, the present
value of the total of the payments to be made by the City is recorded as long-term debt. The
City’s leasing arrangements are included in long term obligations discussed above.
A summary of capital assets leased through the issuance of leasing arrangements follows:
Original
Leasing Arrangement Fund/Activity Cost
Capital Leases Governmental Activity $5,842,799
C. Legal Debt Margin
The City is subject to a debt limit that is 3.75% of the total assessed value of property, net of
exempt real property. At June 30, 2022, that amount was $924,439,440. As of June 30, 2022, the
City did not have any outstanding debt applicable to the limit.
D. Debt without City Commitment
In April 2022 the Community Facilities District No. 2021-01 Special Tax Bonds, Series 2022 in
the amount of $19,685,000 were issued by the City of South San Francisco Community Facilities
District No. 2021-01. The City is the collecting and paying agent for the debt issued by the
District, but has no direct or contingent liability or moral obligation for the payment of this debt.
As of June 30, 2022 the outstanding balance of the issue was $19,685,000.
78 341
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 6 – NET POSITION AND FUND BALANCES
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows of resources over all its
liabilities and deferred inflows of resources, regardless of fund. Net Position is divided into three
captions. These captions apply only to Net Position, which is determined only at the
Government-wide level, and are described below:
Net Investment in Capital Assets describes the portion of Net Position which is represented by the
current net book value of the City’s capital assets, less the outstanding balance of any debt issued
to finance these assets.
Restricted describes the portion of Net Position which is restricted as to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws, or other
restrictions which the City cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted to use.
B. Fund Balance
The City’s fund balances are classified in accordance with generally accepted accounting
principles which require the City to classify its fund balances based on spending constraints
imposed on the use of resources.
For programs with multiple funding sources, the City prioritizes and expends funds in the
following order: Restricted, Committed, Assigned, and Unassigned. Each category in the
following hierarchy is ranked according to the degree of spending constraint.
Nonspendables represents balances set aside to indicate items do not represent available,
spendable resources even though they are a component of assets. Fund balances required to be
maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such
as prepaids, notes receivable, and land held for redevelopment are included. However, if
proceeds realized from the sale or collection of nonspendable assets are restricted, committed or
assigned, then Nonspendable amounts are required to be presented as a component of the
applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors,
laws, regulations, or enabling legislation which requires the resources to be used only for a
specific purpose. Nonspendable amounts subject to restrictions are included along with spendable
resources.
Committed fund balances have constraints imposed by Council Resolution of the City Council
which may be altered only by Council Resolution of the City Council. Nonspendable amounts
subject to council commitments are included along with spendable resources.
79 342
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 6 – NET POSITION AND FUND BALANCE (Continued)
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific
purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its
designee and may be changed at the discretion of the City Council or its designee. The City
Council had delegated authority to the Finance Director to assign fund balances which are not
otherwise restricted or committed. This category includes nonspendables, when it is the City’s
intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of
Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or
committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or
assigned. This includes the residual general fund balance and residual fund deficits, if any, of other
governmental funds.
Minimum Fund Balance Policies – The City’s Reserve Policy is to have the General Fund
Reserves equal to at least two months of operating revenues of 15% and up to 20%, which is in
alignment with GFOA best practices. Included is an emergency reserve that reflects 2% of the
general fund operating expenditures budget as well as an economic contingency which is 7% of
general fund revenues. Funds in excess of these requirements will continue to be earmarked for
paying down long-term liabilities, such as the Retiree Health/Other Post-Employment Benefits
(OPEB) or for Infrastructure and Facilities Replacement needs.
Detailed classifications of the City’s Fund Balances, as of June 30, 2022, are below:
Low and Moderate East of 101
General Income Housing Capital Sewer Traffic
Fund Balance Classifications Fund Assets Improvement Impact Fees Impact Fees
Nonspendables:
Items not in spendable form:
Inventory and prepaid items $4,099
Total Nonspendable Fund Balances 4,099
Restricted for:
Sewer Impact Fees $4,872,806
Traffic impact fees projects $24,761,557
Civic campus projects $16,847,198
Low and moderate housing projects $3,029,092
Redevelopment and community development activities 14,763,033
Total Restricted Fund Balances 14,763,033 3,029,092 16,847,198 4,872,806 24,761,557
Committed for:
Capital projects 4,244,813
Local services 11,839,164
Total Committed Fund Balances 16,083,977
Assigned to:
Capital projects 7,482,439
Total Assigned Fund Balances 7,482,439
Unassigned:
General fund 38,313,108
Other fund deficits (1,437,892)
Total Unassigned Fund Balances 38,313,108 (1,437,892)
Total Fund Balances $76,646,656 $3,029,092 $15,409,306 $4,872,806 $24,761,557
Capital Project Funds
80 343
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 6 – NET POSITION AND FUND BALANCE (Continued)
Capital Project Funds
Capital
Capital Capital Capital Improvements Other
Child Care Infrastructure Improvements Improvements Orange Governmental
Fund Balance Classifications (continued) Impact Fees Reserve Fund Police Station Civic Campus Memorial Park Funds
Restricted for:
Child Care impact fees projects $13,901,164
Police station projects $468,782
Civic campus projects $37,280,365 $71,684,403
Gas Tax projects $287,907
Developer contributions projects 7,567,347
Community Development Block Grant projects 163,662
Maintenance districts projects 4,859,706
Transportation sales tax projects 3,713,678
City programs projects 10,908,572
Other Special Revenues projects 9,044,236
Capital projects activities 34,191,712
Total Restricted Fund Balances 13,901,164 468,782 37,280,365 71,684,403 70,736,820
Assigned to:
Capital infrastructure projects $24,889,824
Total Assigned Fund Balances 24,889,824
Total Fund Balances $13,901,164 $24,889,824 $468,782 $37,280,365 $71,684,403 $70,736,820
C. Encumbrances
The City uses an encumbrance system as an extension of normal budgetary accounting for
governmental funds. Under this system, purchase orders, contracts, and other commitments for
the expenditure of monies are recorded in order to reserve that portion of applicable
appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed or
assigned fund balance, depending on the classification of the resources to be used to liquidate the
encumbrance, since they do not constitute expenditures or liabilities. Unexpended appropriations
lapse at year-end and must be reappropriated in the following year. Encumbrances outstanding in
governmental funds as of June 30, 2022, were as listed below:
Governmental funds:Amount
General Fund $7,482,439
Low and Moderate Income Housing Assets Special Revenue Fund 10,743
Capital Improvement Capital Projects Fund 27,517,978
Capital Infrastructure Reserve Capital Projects Fund 1,617,850
Capital Improvements Police Station Capital Projects Fund 47,722
Capital Improvements Civic Campus Capital Projects Fund 34,182,728
Other Governmental Funds 2,677,758
Total $73,537,218
81 344
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLANS
For purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of the
City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions
to/deductions from the Plans’ fiduciary net position have been determined on the same basis as
they are reported by the CalPERS Financial Office. 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.
A. General Information about the Pension Plans
Plan Descriptions – All qualified permanent and probationary employees are eligible to
participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans,
agent multiple-employer defined benefit pension plans administered by the California Public
Employees’ Retirement System (CalPERS), which acts as a common investment and
administrative agent for its participating member employers. Benefit provisions under the Plans
are established by State statute and City resolution.
CalPERS issues publicly available reports that include a full description of the pension plans
regarding benefit provisions, assumptions and membership information that can be found on the
CalPERS website.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of
living adjustments and death benefits to plan members, who must be public employees and
beneficiaries. Benefits are based on years of credited service, equal to one year of full time
employment. Members with five years of total service are eligible to retire at age 50 with
statutorily reduced benefits. 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 1957
Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments
for each plan are applied as specified by the Public Employees’ Retirement Law.
82 345
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows:
Miscellaneous
Classic Plan* Tier 2 Plan* PEPRA Plan
Prior to After On or after
Hire date April 25, 2010 April 25, 2010 January 1,2013
Benefit formula 2.7% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 50 - 55 50 - 67 52 - 67
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.092% to 2.418% 1.0% to 2.5%
Required employee contribution rates 8%7%6.5%
Required employer contribution rates 9.99%9.99%9.99%
Required Unfunded Actuarial Liability Contribution $6,718,047
* Effective July 2021, Classic Plan and Tier 2 Plan members in the Executive Management Unit are required to pay an
additional 2% for their share of pension costs.
Safety
Classic Plan ** Tier 2 Plan ** PEPRA Plan
Hire date Prior to
April 25, 2010
After
April 25, 2010
On or after
January 1, 2013
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 50 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 3% 2.4% to 3.0% 2.0% to 2.7%
Required employee contribution rates 9%9%11.5%
Required employer contribution rates 20.59%20.59%20.59%
Required Unfunded Actuarial Liability Contribution $8,906,578
** Effective October 2018, Classic Plan and Tier 2 Plan members in the Executive Management Unit are required to pay an
additional 2% for their share of pension costs.
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a
percentage of payroll for the normal cost portion as noted in the rates above and as a dollar
amount for contributions toward the unfunded liability (UAL). The dollar amounts are billed on a
monthly basis or the City can elect a lump sum payment option. The City’s required contributions
for the unfunded liability in the Miscellaneous and Safety Plans for the year ended June 30, 2022
were $6,718,047 and $8,906,578, respectively, which were made under the lump sum payment
option.
Employees Covered – As of the June 30, 2020 actuarial valuation date and the June 30, 2021
measurement date, the following employees were covered by the benefit terms for the Plans:
Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 481 297
Inactive employees entitled to but not yet receiving benefits 396 104
Active employees 283 158
Total 1,160 559
83 346
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires
that the employer contribution rates for all public employers be determined on an annual basis by
the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding
contributions for both Plans are determined annually on an actuarial basis as of June 30 by
CalPERS. 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 City is required to contribute the difference between the
actuarially determined rate and the contribution rate of employees. Employer Contribution rates
may change if plan contracts are amended.
B. Net Pension Liability
The City’s net pension liability for each Plan is measured as the total pension liability, less the
pension plan’s fiduciary net position. The net pension liability of each Plan is measured as of
June 30, 2021, using an annual actuarial valuation as of June 30, 2020 rolled forward to June 30,
2021 using standard update procedures. The long-term portion of governmental activities net
pension liability is liquidated primarily by the General Fund. A summary of principal
assumptions and methods used to determine the net pension liability is shown below.
Actuarial Assumptions – The total pension liabilities as of the June 30, 2021 measurement date
were based on the following actuarial assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Payroll Growth
Salary Increase
Investment Rate of Return
Mortality
Post Retirement Benefit Increase
(1) Actuarial assumptions are the same for all benefi tiers (Classic Tier 1, Classic Tier II, and PEPRA)
(2) Depending on age, service and type of employment.
(3)Net of pension plan investment expenses, including inflation.
Miscellaneous and Safety (1)
6/30/2020
6/30/2021
Entry-Age Normal Cost Method
7.15%
(4) The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are based
on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality
rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of
Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial
Assumptions report from December 2017 that can be found on the CalPERS website.
2.50%
(2)
7.15% (3)
The lesser of contract COLA or 2.50% until Purchasing Power Protection
Allowance Floor on Purchasing Power applies, 2.50% thereafter
Derived using CalPERS Membership Data for all Funds (4)
2.75%
84 347
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
The underlying mortality assumptions and all other actuarial assumptions used in the June 30,
2020 valuation were based on the results of a December 2017 actuarial experience study for the
period 1997 to 2015. Further details of the Experience Study can be found on the CalPERS
website.
Discount Rate – The discount rate used to measure the total pension liability was 7.15%. The
projection of cash flows used to determine the discount rate for each Plan assumed that
contributions from all plan members in the Public Employees Retirement Fund (PERF) 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, each
Plan’s fiduciary net position was projected to be available to make all projected future benefits
payments of current plan members for all plans in the PERF. Therefore, the long- term expected
rate of return on plan investment was applied to all periods of projected benefit payment to
determine the total pension liability for each Plan.
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 as well as the expected pension fund cash flows. Using
historical returns of all the fund’s asset classes, expected compound (geometric) returns were
calculated over the short- term (first 10 years) and the long -term (11+ years) using a building-
block approach. Using the expected nominal returns for both short- term and long- term, the
present value of benefits was calculated for each fund. The expected rate of return was set by
calculating the rounded single equivalent expected return that arrived at the same present value of
benefits for cash flows as the one calculated using both short- term and long- term returns. The
expected rate of return was then set equal to the single equivalent rate calculated above and
adjusted for assumed administrative expenses.
The table below reflects the long-term expected real rates of return by asset class.
Asset Class(a)
Assumed
Asset
Allocation
Real Return
Years 1 - 10(b)
Real Return
Years 11+(c)
Public Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
Total 100%
(a) In the CalPERS's Annual Comprehensive Financial Reports, Fixed income is included in
Global Debt Securities; Liquidity is included in Short-Term Investments; Inflation Assets are
included in both Global Equity Securities and Global Debt Securities.
(b) An expected inflation of 2.0% used for this period.
(c) An expected inflation of 2.92% used for this period.
85 348
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
C. Changes in the Net Pension Liability
The changes in the Net Pension Liability for each Plan are as follows:
Miscellaneous Plan:
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2020 (Measurement Date)$254,824,922 $167,734,633 $87,090,289
Changes in the year:
Service cost 4,274,015 4,274,015
Interest on the total pension liability 17,951,111 17,951,111
Changes of benefit terms
Chases of assumptions
Differences between actual and expected experience 1,018,943 1,018,943
Plan to plan resource movement
Contribution - employer 8,623,876 (8,623,876)
Contribution - employees 2,006,497 (2,006,497)
Net investment income 38,008,815 (38,008,815)
Benefit payments, including refunds of employee
contributions (13,832,759) (13,832,759)
Administrative expenses (167,557) 167,557
Other Miscellaneous Income/(Expense)
Net changes 9,411,310 34,638,872 (25,227,562)
Balance at June 30, 2021 (Measurement Date)$264,236,232 $202,373,505 $61,862,727
Safety Plan:
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2020 (Measurement Date)$359,168,480 $240,958,874 $118,209,606
Changes in the year:
Service cost 7,072,216 7,072,216
Interest on the total pension liability 25,441,168 25,441,168
Changes of benefit terms
Chases of assumptions
Differences between actual and expected experience 1,772,836 1,772,836
Plan to plan resource movement
Contribution - employer 12,413,770 (12,413,770)
Contribution - employees 2,893,339 (2,893,339)
Net investment income 54,912,645 (54,912,645)
Benefit payments, including refunds of employee
contributions (17,313,787) (17,313,787)
Administrative expenses (240,703) 240,703
Other Miscellaneous Income/(Expense)
Net changes 16,972,433 52,665,264 (35,692,831)
Balance at June 30, 2021 (Measurement Date)$376,140,913 $293,624,138 $82,516,775
Grand Total - Both Plans $640,377,145 $495,997,643 $144,379,502
86 349
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following
presents the net pension liability of the City for each Plan, calculated using the discount rate for
each Plan, as well as what the City’s net pension liability would be if it were calculated using a
discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pension Liability $95,542,624 $133,020,062
Current Discount Rate 7.15% 7.15%
Net Pension Liab ility $61,862,727 $82,516,775
1% Increase 8.15% 8.15%
Net Pension Liability $33,959,512 $40,965,167
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary
net position is available in the separately issued CalPERS financial reports.
D. Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For the year ended June 30, 2022, the City recognized pension expense of $4,436,373 and
$5,970,893 for the Miscellaneous and Safety Plans, respectively, for total pension expense of
$10,407,266. At June 30, 2022, the City reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Miscellaneous Plan:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $9,491,640
Changes of assumptions
Differences between actual and expected experience 1,100,830
Net differences between projected and actual earning s on
plan investments ($18,914,071)
Total $10,592,470 ($18,914,071)
Safety Plan:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $13,387,919
Changes of assumptions
Differences between actual and expected experience 1,671,857
Net differences between projected and actual earning s on
plan investments ($27,272,371)
Total $15,059,776 ($27,272,371)
Grand Total $25,652,246 ($46,186,442)
87 350
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 7 – PENSION PLAN (Continued)
$22,879,559 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the net pension liability in the year ended
June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized as pension expense as follows:
Miscellaneous Plan:
Year Ended Annual
June 30 Amortization
2023 ($3,928,150)
2024 (4,110,738)
2025 (4,542,742)
2026 (5,231,611)
Safety Plan:
Year Ended Annual
June 30 Amortization
2023 ($5,867,151)
2024 (5,672,976)
2025 (6,504,757)
2026 (7,555,630)
E.Subsequent Event – Reduction of CalPERS Discount Rate
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal
year 2020-21. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy
approved by the CalPERS Board in 2015, the excess return of 14.3% prescribes a reduction in
investment volatility that corresponds to a reduction in the discount rate used for funding
purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year
Asset Liability Management (ALM) cycle, the CalPERS Board elected to defer any changes to
the asset allocation until the ALM process concluded, and the board could make its final decision
on the asset allocation in November 2021.
On November 17, 2021, the board adopted a new strategic asset allocation. The new asset
allocation along with the new capital market assumptions, economic assumptions and
administrative expense assumption support a discount rate of 6.80% (net of investment expense,
but without a reduction for administrative expense) for financial reporting purposes. This
includes a reduction in the price inflation assumption from 2.50% to 2.30% as recommended in
the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This
study also recommended modifications to retirement rates, termination rates, mortality rates and
rates of salary increases that were adopted by the CalPERS Board. These new assumptions will
be reflected in the CalPERS GASB 68 accounting valuation reports for the June 30, 2022,
measurement date.
88 351
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 8 – DEFERRED COMPENSATION PLAN
City employees may defer a portion of their compensation under a City sponsored Deferred
Compensation Plan created in accordance with Internal Revenue Code Section 457. Under this
Plan, participants are not taxed on the deferred portion of their compensation until it is distributed
to them; distributions may be made only at termination, retirement, death or in an emergency as
defined by the Plan. The City does not make any contributions to the Plan.
The City has no liability for any losses incurred by the Plan and does not participate in any gains,
but does have the duty of due care that would be required of an ordinary prudent investor. The
City has a contract with Empower Retirement to manage and invest the assets of the Plan. The
assets in the Plan are the sole property of the participants or their beneficiaries. Since the assets
held under the Plan are not the City’s property and are not subject to claims by general creditors
of the City, they have been excluded from these financial statements. The Plan requires
investments to be stated at fair value and it requires all gains and losses on Plan investments to
accrue directly to participant accounts.
The laws governing deferred compensation plan assets require plan assets to be held by a Trust
for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under
these plans are not the City’s property and are not subject to City control, they have been
excluded from these financial statements.
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS
A. General Information about the City’s Other Post Employment Benefit (OPEB) Plans
The City provides certain health care benefits for all employees who retire after attaining age 50
with at least five years of service or disability at any age. The City provides certain health care
benefits for those employees hired prior to April 25, 2010. In order to reduce the City’s OPEB
obligations over time, the City changed to a defined contribution post-retirement health plan for
employees hired as of April 25, 2010 or after. For those new hires, the City is now providing a
medical after retirement health plan (MARA), and contributes 1.5% of salary for those
employees.
B. Defined Benefit Plan Description
The City’s Post Employment Benefit Plan for employees hired prior to April 25, 2010 is an agent
multiple-employer defined benefit OPEB plan.
The City joined the California Employers’ Retiree Benefit Trust (CERBT), an agent multiple-
employer plan administered by CalPERS, consisting of an aggregation of single-employer
plans. The CERBT issues a publicly available financial report that includes financial statements
and required supplementary information. That report may be obtained from the California Public
Employees’ Retirement System, CERBT, P.O. Box 942703, Sacramento, CA 94229-2703.
89 352
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
Benefits provided – The following is a summary of Plan benefits by employee group as of June 30,
2022:
Eligibility • Hired < 4/25/2010
• Retire directly from City and elect coverage:
• Age 50 and 5 years City service or
• Disability retirement with 5 years City service
Benefit • City pays single premium up to largest HMO single premium
Cap for 2021/22:
- $1,430.80/month pre-65 (Blue Shield)
- $785.04/month post-65 Medicare eligible (Blue Shield)
- $1,971.53/ month post-65 not Medicare eligible (Kaiser)
• Medi care ine ligible retirees allowed to stay in t heir pre-
Medicare premium plans after age 65
Surviving Spouse
Benefit
• Participation with premium payment
• AFSCME, Local 1569, Mid-Management, IAFF
surviving spouses covered 2 months following death of
Other OPEB • City also reimburses Medicare Part B
• No City-paid contribution for dental, vision, or life
For the year ended June 30, 2022, the City’s contributions to the Plan were $4,810,361.
Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the
measurement date of June 30, 2020:
Active employees 181
Inactive employees or beneficiaries currently
receiving benefit payments 368
Total 549
C. OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of Resources Related to
OPEB
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred
inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net
position of the City’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 the California
Employers’ Retiree Benefit Trust (CERBT). For this purpose, benefit payments are recognized
when currently due and payable in accordance with the benefit terms. Investments are reported at
fair value. The long-term portion of governmental activities net OPEB liability is liquidated
primarily by the General Fund.
90 353
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
D. Net OPEB Liability
Actuarial Methods and Assumptions – The City’s net OPEB liability was measured as of June
30, 2021 and the total OPEB liability used to calculate the net OPEB liability was determined by
an actuarial valuation dated June 30, 2021, based on the following actuarial methods and
assumptions:
Valuation Date • June 30, 2021
Measurement Date • June 30, 2021
Contribution Policy • City contributes $802,000 per year into trust
Actuarial Cost Method • Entry Age Normal, Level Percentage of Payroll
Amortization Method • Level dollar
Amortization Period • Average of 21 years remaining for 2021/22
• 6.25% at June 30, 2021
• 6.75% at June 30, 2020
• Expected City contributions projected to keep sufficient plan
assets to pay all benefits from trust.
Inflation • 2.50% per annum
Salary Increases • Aggregate - 2.75% annually
• Merit - CalPERS 1997-2015 Experience Study
Healthcare/Medical Trend • Non-Medicare - 6.75% for 2022, decreasing to an ultimate
rate of 3.75% in 2076 and later years
• Medicare (Non-Kaiser) - 5.85% for 2022, decreasing to an
ultimate rate of 3.75% in 2076 and later years
• Medicare (Kaiser) - 4.75 for 2022, decreasing to an ultimate
rate of 3.75% in 2076 and later years
Mortality, Retirement, Disability, Termination • CalPERS 1997-2015 Experience Study
Mortality Improvement • Mortality projected fully generational with Scale MP-2021
Healthcare participation for future retirees • 100% if covered, 95% if waived
Discount Rate and Long-Term Expected
Rate of Return on Assets
Actuarial Assumptions
91 354
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
The long-term expected rate of return on OPEB plan investments was determined using a building-
block method in which expected future real rates of return (expected returns, net of OPEB plan
investment expense and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected future real
rates of return by the target asset allocation percentage and by adding expected inflation. The target
allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Global equity 59.0%4.56%
Fixed income 25.0%0.78%
TIPS 5.0%0.08%
Commodities 3.0%1.22%
REITs 8.0%4.06%
Total 100.0%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Term Net Rate of Return, Rounded 6.25%
Discount Rate – The discount rate used to measure the total OPEB liability was 6.75%. The
projection of cash flows used to determine the discount rate assumed that City contributions will be
made at rates equal to actuarially determined contribution rates. Based on those assumptions, the
OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB
payments for current active and inactive employees and beneficiaries. Therefore, the long-term
expected rate of return on OPEB plan investments was applied to all periods of projected benefit
payments to determine the total OPEB liability.
Changes of Assumptions – For the measurement date of June 30, 2022, the discount rate decreased
from 6.75% to 6.25%, the inflation rate decreased from 2.75% to 2.50%, the payroll growth rate
decreased from 3.00% to 2.75%, the medical trend rate for Kaiser Senior Advantage decreased from
7.0% to 6.75% and the mortality improvement scale was updated to Scale MP- 2021.
92 355
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
E. Changes in Net OPEB Liability
The changes in the net OPEB liability follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (a) - (b)
Balance at June 30, 2020 Measurement Date $90,241,209 $25,868,613 $64,372,596
Changes Recognized for the Measurement Period:
Service Cost 1,515,601 1,515,601
Interest on the total OPEB liability 6,058,295 6,058,295
Changes in benefit terms
Differences between expected and actual experience (3,331,956) (3,331,956)
Changes of assumptions 1,446,069 1,446,069
Contributions from the employer 4,810,361 (4,810,361)
Net investment income 7,140,915 (7,140,915)
Benefit payments (4,008,599) (4,008,599)
Administrative expenses (9,829)9,829
Net changes 1,679,410 7,932,848 (6,253,438)
Balance at June 20, 2021 Measurement Date $91,920,619 $33,801,461 $58,119,158
Increase (Decrease)
F. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost
Trend Rates
The following presents the net OPEB liability of the City, as well as what the City's net OPEB
liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.75%)
or 1-percentage-point higher (7.75%) than the current discount rate:
Net OPEB Liability/(Asset)
Discount Rate -1% Current Discount Rate Discount Rate +1%
(5.75%) (6.75%) (7.75%)
$70,042,838 $58,119,158 $48,248,701
The following presents the net OPEB liability of the City, as well as what the City's net OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point
lower or 1-percentage-point higher than the current healthcare cost trend rates as discussed in the
assumptions above:
Net OPEB Liability/(Asset)
Current Healthcare Cost
1% Decrease Trend Rates 1% Increase
$48,009,017 $58,119,158 $70,365,417
93 356
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
G. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2022, the City recognized OPEB expense of $4,372,607. At June 30,
2022, the City reported deferred outflows and inflows of resources related to OPEB from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Employer contributions made subsequent to the measurement date $4,868,877
Differences between actual and expected experience 483,000 ($2,183,006)
Changes of assumptions 947,425 (808,048)
Net differences between projected and actual earnings on
plan investments (3,831,526)
Total $6,299,302 ($6,822,580)
$4,868,877 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30,
2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized as part of OPEB expense as follows:
Year Annual
Ended June 30 Amortization
2023 ($1,800,034)
2024 (1,598,303)
2025 (916,853)
2026 (1,076,965)
H. Defined Contribution Plan
The City of South San Francisco funded HRA Plan is a defined contribution OPEB plan for
employees hired on or after April 25, 2010. For those new hires, the City provides a medical after
retirement health plan (MARA), and contributes 1.5% of salary for those employees. In addition,
employees contribute to the MARA plan as directed by their respective bargaining unit’s
Memorandum of Understanding or compensation plan.
The plan is administered by Matrix Trust Company. Employee contributions for the fiscal year
totaled $397,012. Employer contributions of $493,299 were paid into the Defined Contribution
Plan. No liability for the defined contribution has been included in the report since the City fully
paid the annual required contribution. Since the assets held under this plan are not the City’s
property and are not subject to claims by general creditors of the City, the assets have been
excluded from these financial statements.
94 357
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 10 – LEASES
A. Policies
A lease is defined as a contract that conveys control of the right to use another entity’s
nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an
exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land,
vehicles, and equipment. The City recognizes lease receivable or liabilities with an initial,
individual value of $1,000,000 or more, based on the present value of future lease payments
remaining at the start of the lease.
Lessee – The City does not have any noncancellable leases of nonfinancial assets as of June 30,
2022, other than the financed purchase discussed in Note 5. The Conference Center Authority is
a lessee for the noncancellable lease of the Conference Center from the City. At the
commencement of a lease, City or Conference Center Authority recognize a lease liability and an
intangible right‐to‐use lease asset (lease asset) in the government‐wide financial statements.
At the commencement of a lease, the City or Conference Center Authority initially measures the
lease liability at the present value of payments expected to be made during the lease term.
Subsequently, the lease liability is reduced by the principal portion of lease payments made. The
lease asset is initially measured as the initial amount of the lease liability, adjusted for lease
payments made at or before the lease commencement date, plus certain initial direct costs.
Subsequently, the lease asset is amortized on a straight‐line basis over its useful life.
Key estimates and judgments related to leases include how the City or Conference Center
Authority determines (1) the discount rate it uses to discount the expected lease payments to
present value, (2) lease term, and (3) lease payments as follows:
• The City or Conference Center Authority uses the interest rate charged by the lessor as
the discount rate. When the interest rate charged by the lessor is not provided, the City or
Conference Center Authority generally uses its respective estimated incremental
borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease.
• Lease payments included in the measurement of the lease liability are composed of fixed
payments and purchase option price that the City or Conference Center Authority is
reasonably certain to exercise.
The City and Conference Center Authority monitor changes in circumstances that would require a
remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur
that are expected to significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with long-term
debt on the statement of net position.
Lessor – The City is a lessor for a noncancellable leases of buildings, billboards and facilities.
The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide
and fund financial statements.
95 358
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 10 – LEASES (Continued)
At the commencement of a lease, the City initially measures the lease receivable at the present
value of payments expected to be received during the lease term. Subsequently, the lease
receivable is reduced by the principal portion of lease payments received. The deferred inflow of
resources is initially measured as the initial amount of the lease receivable, adjusted for lease
payments received at or before the lease commencement date. Subsequently, the deferred inflow
of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to
discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as
follows:
• The City uses its estimated incremental borrowing rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease.
• Lease receipts included in the measurement of the lease receivable is composed of fixed
payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and
will remeasure the lease receivable and deferred inflows of resources if certain changes occur that
are expected to significantly affect the amount of the lease receivable.
B. Leases Receivable
The balances related to leases receivable and deferred inflows of resources as of June 30, 2022
were:
Lease Deferred Inflows
Receivable of Resources
Governmental Activities
Leases Receivable (Lessor)
General Fund:
Conference Center $2,409,308 $2,404,923
Costco 4,165,186 4,107,234
Billboards 6,881,282 6,695,107
Low and Moderate Income Housing Assets Fund:
Magnolia 1,197,345 1,183,182
Total governmental activities leases receivable $14,653,121 $14,390,446
96 359
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 10 – LEASES (Continued)
Conference Center – The Conference Center Authority, a discrete component unit, leases land
from the City under an operating lease commencing on January 1, 1999, with a 30-year term from
February 1, 1999, to January 31, 2029. The rent amount is subject to re-negotiation at the option
of either party between January 1 and February 28, 2009 and 2019. The cost and carrying
amount of leased land under this lease receivable is $5,040,000. The City recognized $343,560 in
lease revenue and $82,454 in interest revenue during the current fiscal year related to this lease.
Also, the City has deferred inflows of resources associated with these leases that will be
recognized as revenue over the lease term.
Costco – Price Club Associates leases the land for the Costco store on South Airport Boulevard
from the City. Lease payments are based on a percentage of Costco’s gross annual sales, with
minimum annual rent set at $400,000, payable in monthly installments of $33,333. In fiscal
2014, Costco exercised the option to extend the lease through fiscal year 2029, with an option for
a 6 year extension through fiscal year 2035. The City recognized $328,579 in lease revenue and
$129,373 in interest revenue during the current fiscal year related to this lease. Also, the City has
deferred inflows of resources associated with these leases that will be recognized as revenue over
the lease term.
Billboards – The City leases digital billboard space to third parties under three lease agreements.
The original terms of the leases were thirty years and as of June 30, 2022, the leases had 22 to 29
years remaining. The rent is based on a minimum annual guaranteed payment, paid on an annual
basis, which increases 15% every five years. The City recognized $252,169 in lease revenue and
$208,007 in interest revenue during the current fiscal year related to these leases. Also, the City
has deferred inflows of resources associated with these leases that will be recognized as revenue
over the lease term.
Magnolia – Magnolia Housing leases the land for Magnolia Plaza Senior Apartments from the
City. Minimum lease payments are set at $51,800, and are payable through the fiscal year 2062.
The City recognized $29,580 in lease revenue and $36,383 in interest revenue during the current
fiscal year related to this lease. Also, the City has deferred inflows of resources associated with
these leases that will be recognized as revenue over the lease term.
C. Lease Payable
The Conference Center Authority’s lease payable consists of the following as of June 30, 2022:
Balance
June 30, 2021 Balance Current
(as restated) Deductions June 30, 2022 Portion
Land Lease $2,748,483 $339,176 $2,409,307 $349,429
97 360
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 10 – LEASES (Continued)
The Authority has a property lease agreement with the City of South San Francisco for 30 years
expiring in 2029. Under the agreement, the City subleases to the Authority, the property in
exchange for the annual lease payment for the use of land. During the fiscal year, the lease
payments totaled $420,000. The total principal and interest paid during the year was $80,824 and
$339,176, respectively. The initial present value of the right of use asset and lease liability, at a
treasury bond rate of 3.00% over the thirty years, was $2,748,483. The balance of the right of use
asset as of June 30, 2022 was $1,948,783, net of accumulated amortization, which is reported
with the Authority’s capital assets in Note 3. The balance of the lease liability as of June 30, 2022
was $2,409,307. There are termination clauses included in the lease agreement, however
management has determined that it is not likely that those clauses will be exercised.
Future minimum lease payments as of June 30, 2022 are as follows:
Year Ending Principal Interest
June 30 Payments Payments Total
2023 $349,429 $70,571 $420,000
2024 359,990 60,010 420,000
2025 370,871 49,129 420,000
2026 382,080 37,920 420,000
2027 393,629 26,371 420,000
2028-2029 553,308 16,692 570,000
$2,409,307 $260,693 $2,670,000
NOTE 11 – JOINTLY GOVERNED ORGANIZATIONS
The City participates in the jointly governed organizations discussed below through formally
organized and separate entities established under the Joint Exercise of Powers Act of the State of
California. As separate legal entities, these entities exercise full powers and authorities within the
scope of the related Joint Powers Agreements including the preparation of annual budgets,
accountability for all funds, the power to make and execute contracts and the right to sue and be
sued. Each joint organization is governed by a board consisting of representatives from member
municipalities. Each board controls the operations of the respective joint organization, including
selection of management and approval of operating budgets, independent of any influence by
member municipalities beyond their representation on that board. Obligations and liabilities of
this joint organization are not the City’s responsibility and the City does not have an equity
interest in the assets of each joint organization except upon dissolution of the joint organization.
A. Oyster Point Marina
(OPM) was established in 1977 by the City and the San Mateo County Harbor District (Harbor
District) for the purpose of expanding, improving and operating the Oyster Point Marina and
Park. The governing board consists of two of the City's council members and two Harbor District
commissioners. The Harbor District operates OPM. Operation of the Marina provides revenues
for the marina's operations. The City retains title to the land; however, the City is not liable for
any obligations of the San Mateo County Harbor District. Condensed unaudited financial
information may be obtained from San Mateo County Harbor District, #1 Johnson Pier, Half
Moon Bay, CA 94019.
98 361
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 11 – JOINTLY GOVERNED ORGANIZATIONS (Continued)
B.Peninsula Traffic Congestion Relief Alliance (PTCRA)
PTCRA was formed from the merger of the Inter City Transportation Systems Management
Agency and Multi-City Transportation Systems Management Agency (MCTSMA) in 2000. The
members are the cities of South San Francisco, Brisbane, Colma, Daly City, Half Moon Bay,
Millbrae, Pacifica and San Bruno and seven other members for the purpose of mitigating traffic
congestion. The governing board consists of one council member from each member city. The
finance director of the City of San Carlos acts as the treasurer and controller of PTCRA. The
individual cities are not liable for the debts, liabilities or obligations of PTCRA. Each member
city has an equal interest in PTCRA. Condensed accrual basis unaudited financial information
may be obtained from the City of San Carlos Finance Department, 666 Elm Street, San Carlos,
CA 94070.
C.City/County Association of Governments (C/CAG)
C/CAG was established in 1990 by the County of San Mateo and the Cities of San Mateo County
for preparation, adoption, monitoring and enforcing of Countywide state mandated plans. A Board
of Directors consisting of one council member from each member city and one member from the
County Board of Supervisors governs C/CAG. The city treasurer of San Carlos acts as the treasurer
of C/CAG. The individual cities and the County are not liable for the debts, liabilities, or obligations
of C/CAG. Condensed unaudited cash basis financial information may be obtained from the City of
San Carlos Finance Department, 666 Elm Street, San Carlos, CA 94070.
NOTE 12 – RISK MANAGEMENT
A.Insurance Coverage
The City participates in Pooled Liability Assurance Network Joint Powers Authority (PLAN
JPA), a nonprofit benefit corporation established to provide liability insurance coverage, claims
and risk management, and legal defense to its participating members. PLAN JPA provides
$1,000,000 of self- funded general liability and automobile coverage (except $250,000 is for the
Employee benefits Plan Administration liability) and $29,000,000 excess liability coverage per
occurrence and is responsible for paying claims in excess of the City’s $100,000 self-insured
retention. The Plan includes a per occurrence or wrongful act or employee benefit wrongful act
up to $10,000,000 with two retained limits of $5,000,000. For the year ended June 30, 2022, the
City paid PLAN JPA $2,036,357 in premiums and did not receive a refund of premiums paid in
prior years. Financial statements may be obtained from PLAN JPA 1750 Creekside Oaks Drive,
Suite 200, Sacramento, CA 95833.
The City has also purchased excess coverage insurance for worker’s compensation claims from
Public Risk, Innovation, Solutions and Management (PRISM) (formerly CSAC Excess Insurance
Authority (CSAC-EIA)). PRISM provides coverage up to statutory limits in excess of the City’s
$500,000 self-insured retention. For the past five fiscal years, general liability and worker
compensation settlements did not exceed insurance coverage.
99 362
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 12 – RISK MANAGEMENT (Continued)
B. Liability for Uninsured Claims
The City provides for the uninsured portion of claims and judgments in the Self Insurance
Internal Service Fund. Claims and judgments, including a provision for claims incurred but not
reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is
reasonably determinable. As discussed above, the City has coverage for such claims, but it has
retained the risk for the deductible or uninsured portion of these claims.
The City’s liability for uninsured claims is limited to workers’ compensation and general liability
claims, as discussed above, and was estimated by management based on prior year’s claims
experience as follows:
June 30, 2022 Fiscal Year
Workers' General 2020-2021
Compensation Liability Total Total
Balance, beginning of year $15,696,000 $53,797 $15,749,797 $14,965,224
Current year claims and changes in
estimates of prior years claims 2,608,615 282,672 2,891,287 3,637,605
Claims Paid (2,061,615) (96,211) (2,157,826) (2,853,032)
Balance, end of year $16,243,000 $240,258 $16,483,258 $15,749,797
Current portion $2,807,000 $240,258 $3,047,258 $2,878,797
NOTE 13 – COMMITMENTS AND CONTINGENCIES
A. Litigation
The City is subject to litigation arising in the normal course of business. In the opinion of the
City Attorney there is no pending litigation which is likely to have a material adverse effect on
the financial position of the City.
B. Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs have been audited by
the City’s independent auditors in accordance with the provisions of the Federal Single Audit Act
as amended and applicable State requirements. No cost disallowances were proposed as a result
of these audits; however, these programs are still subject to further examination by the grantors
and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot
be determined at this time. The City expects such amounts, if any, to be immaterial.
100 363
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 13 – COMMITMENTS AND CONTINGENCIES (Continued)
C.Miller Parking Garage
The Miller Parking Garage (“Parking Garage)”, constructed in 2011, is located at 329 Miller
Avenue in the City. The Parking Garage consists of a five-level open-air concrete structure
building of approximately 100,000 square feet with 244 parking spaces. Approximately 14,350
square feet of commercial and office space (the “Commercial Space”) is located on the ground
floor of the Parking Garage.
In February 2020, the City sold the Commercial Space for $1,247,950. In connection with the
sale of the Commercial Space, a condominium map was recorded with the County to create
separate assessor parcel numbers for the Commercial Space and the balance of the property
included within the Parking Garage. No rights to the parking spaces were granted to the owners
of the Commercial Space in connection with its sale. However, the owners of the Commercial
Space may use such spaces upon payment to the City of the applicable parking fees.
D. Construction Contract Dispute
Following a competitive bid process, the City awarded a contract for construction of certain
improvements related to the Grand Boulevard Initiative. The project finished well past the
contract completion date and the City withheld funds for late completion and to correct
incomplete and defective work. The City and the contractor engaged a third-party mediator, but
were unable to resolve the dispute at mediation in August 2022. The contractor filed a complaint
in San Mateo County Superior Court on September 14, 2022, seeking $6,500,000 in
compensatory damages, interest, and costs of suit. No trial date has been set as of November
2022. The City disputes the allegations and intends to vigorously pursue affirmative claims
against the contractor. The City may be negatively impacted should the court rule in favor of the
contractor, however any such impact cannot be determined at this time.
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES
The activities of the Successor Agency are reported in the Successor Agency to the former
Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the
Oversight Board. The City provides administrative services to the Successor Agency to wind
down the affairs of the former Redevelopment Agency.
On July 1, 2018, the duties of the South San Francisco Oversight Board transferred to a new San
Mateo Countywide Oversight Board, which will now be responsible for overseeing the winddown
affairs of all Successor Agencies in San Mateo County, including the Successor Agency to the
South San Francisco Redevelopment Agency.
Information presented in the following footnotes represents assets and liabilities of the Successor
Agency.
A. Cash and Investments
Cash and investments of the Successor Agency as of June 30, 2022 are discussed in Note 2 to the
financial statements. Information presented in the following footnotes represents other assets and
liabilities of the Successor Agency as of June 30, 2022.
101 364
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
B. Loans Receivable
The Successor Agency assumed the non-housing loans receivable of the former Redevelopment
Agency as of February 1, 2012. The former Redevelopment Agency engaged in programs
designed to encourage construction of or improvement to low-to-moderate income housing.
Under these programs, grants or loans were provided to homeowners or developers who agreed to
expend these funds in accordance with the Agency’s terms.
C. Capital Assets
The Successor Agency assumed the capital assets of the former Redevelopment Agency as of
February 1, 2012. All capital assets are valued at historical cost or estimated historical cost if
actual historical cost is not available. Contributed capital assets are valued at their acquisition
value. The Successor Agency’s policy is to capitalize all assets with costs exceeding certain
minimum thresholds and with useful lives exceeding two years.
All capital assets with limited useful lives are depreciated over their estimated useful lives. The
purpose of depreciation is to spread the cost of capital assets equitably among all users over the
life of these assets. The amount charged to depreciation expense each year represents that year’s
pro rata share of the cost of capital assets.
Depreciation of all capital assets is charged as an expense against operations each year and the
total amount of depreciation taken over the years, called accumulated depreciation, is reported on
the balance sheet as a reduction in the book value of capital assets.
Depreciation is provided using the straight line method which means the cost of the asset is
divided by its expected useful life in years and the result is charged to expense each year until the
asset is fully depreciated. The Successor Agency has assigned the useful lives listed below to
capital assets:
Buildings 50 years
Improvements 30 years
Machinery and equipment 5-20 years
Furniture and fixtures 12 years
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase is reflected in the capitalized value of the asset
constructed, net of interest earned on the invested proceeds over the same period. The
capitalization level is $20,000 for vehicles, and $100,000 for all else, including all other
equipment that is not a vehicle.
102 365
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
Capital assets recorded at June 30 are comprised of:
Balance Balance
June 30, 2021 Retirement June 30, 2022
Fiduciary activities
Capital assets not being depreciated:
Land $111,219 $111,219
Total capital assets not
being depreciated 111,219 111,219
Capital assets being depreciated:
Buildings and Improvements 329,671 329,671
Equipment and Vehicle 242,190 242,190
Furniture and Fixtures 21,506 21,506
Total capital assets being depreciated 593,367 593,367
Less accumulated depreciation for:
Buildings and Improvements (84,953) ($6,594) (91,547)
Equipment and Vehicle (242,190)(242,190)
Furniture and Fixtures (21,506)(21,506)
Total accumulated depreciation (348,649) (6,594) (355,243)
Net capital assets being depreciated 244,718 (6,594) 238,124
Fiduciary activity capital assets, net $355,937 ($6,594) $349,343
D. Defeased Bonds
As of June 30, 2022, the outstanding balance of defeased debt was $3,905,000 for the 1997
Downtown /Central Redevelopment Tax Allocation Bonds.
E. Commitments And Contingencies
State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semi-
annually that contains all proposed expenditures for the subsequent six-month period. The ROPS
is subject to the review and approval of the Oversight Board as well as the State Department of
Finance. Although the State Department of Finance may not question items included on the
ROPS in one period, they may question the same items in a future period and disallow associated
activities. The amount, if any, of current obligations that may be denied by the State Department
of Finance cannot be determined at this time. The City expects such amounts, if any, to be
immaterial.
103 366
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2022
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
State Asset Transfer Review
The activities of the former Redevelopment Agency and the Successor Agency were also subject
to further examination by the State of California. The State Controller’s Office conducted a
review of the propriety of asset transfers between the former Redevelopment Agency or the
Successor Agency and any public agency that occurred on or after January 1, 2011. The results of
that review were issued in July 2015 and although the review did identify ineligible transfers of
assets from the former Redevelopment Agency to the City, the report reflected the current year
and prior year transfers and made no further demands for the return of assets to the Successor
Agency.
104 367
REQUIRED SUPPLEMENTARY INFORMATION
368
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021
Total Pension Liability
Service cost $3,449,973 $3,075,813 $3,079,994 $3,922,518 $4,001,207 $4,118,735 $4,267,487 $4,274,015
Interest on total pension liability 13,930,544 14,393,013 14,870,988 15,430,998 15,885,315 16,624,514 17,306,781 17,951,111
Changes of benefit terms
Changes of assumptions (3,374,655)12,421,358 (1,361,078)
Difference between expected and actual experience (1,567,798) (476,337) 1,958,164 187,342 2,853,948 1,771,483 1,018,943
Benefit payments, including refunds of employee
contributions (9,287,975) (10,407,243) (11,085,829) (11,565,392) (12,164,689) (12,756,888) (13,336,957) (13,832,759)
Net change in total pension liability 8,092,542 2,119,130 6,388,816 22,167,646 6,548,097 10,840,309 10,008,794 9,411,310
Total pension liability - beginning 188,659,588 196,752,130 198,871,260 205,260,076 227,427,722 233,975,819 244,816,128 254,824,922
Total pension liability - ending (a)$196,752,130 $198,871,260 $205,260,076 $227,427,722 $233,975,819 $244,816,128 $254,824,922 $264,236,232
Plan fiduciary net position
Contributions - employer $4,235,454 $4,546,984 $5,726,981 $5,228,454 $6,165,764 $6,851,659 $7,823,463 $8,623,876
Contributions - employee 1,466,176 1,411,273 1,622,453 1,720,600 1,727,041 1,816,507 1,883,698 2,006,497
Net investment income 21,712,340 3,221,551 687,860 15,616,363 12,458,090 10,240,873 8,084,207 38,008,815
Benefit payments, including refunds of employee
contributions (9,287,975) (10,407,243) (11,085,829) (11,565,392) (12,164,689) (12,756,888) (13,336,957) (13,832,759)
Plan to plan resource movement (50,555) 229 (365) (20) (32)
Administrative expense (160,268) (86,726) (205,472) (233,683) (112,374) (230,510) (167,557)
Other miscellaneous income (443,767) 365
Net change in plan fiduciary net position 18,125,995 (1,438,258) (3,135,032) 10,794,553 7,508,391 6,040,122 4,223,869 34,638,872
Plan fiduciary net position - beginning 125,614,993 143,740,988 142,302,730 139,167,698 149,962,251 157,470,642 163,510,764 167,734,633
Plan fiduciary net position - ending (b)$143,740,988 $142,302,730 $139,167,698 $149,962,251 $157,470,642 $163,510,764 167,734,633 202,373,505
Net pension liability - ending (a)-(b)$53,011,142 $56,568,530 $66,092,378 $77,465,471 $76,505,177 $81,305,364 $87,090,289 $61,862,727
Plan fiduciary net position as a percentage of the total
pension liability 73.06% 71.56% 67.80% 65.94% 67.30% 66.79% 65.82% 76.59%
Covered payroll $17,725,581 $17,798,104 $21,409,193 $29,390,370 $23,630,354 $24,993,270 $26,275,955 $27,681,286
Net pension liability as percentage of covered payroll 299.07% 317.83% 308.71% 263.57% 323.76% 325.31% 331.44% 223.48%
Notes to Schedule:
*Fiscal year 2015 was the 1st year of implementation.
Benefit changes:The figures above do not include any liability impact that may have resulted from plan changes
which occurred after the June 30 valuation date. This applies for voluntary benefit changes as well as any offers of
Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes in assumptions: In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019, 2020, and 2021,
there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate form 7.5% (net of administrative expense)
to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount
rate.
106 369
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 2021 2022
Actuarially determined contribution $4,210,973 $5,399,856 $5,228,454 $6,166,024 $6,851,659 $7,831,598 $8,616,536 $9,491,640
Contributions in relation to the actuarially
determined contributions 4,210,973 5,399,856 5,228,454 6,166,024 6,851,659 7,831,598 8,616,536 9,491,640
Contribution deficiency (excess)$0 $0 $0 $0 $0 $0 $0 $0
Covered payroll $17,798,104 $21,409,193 $29,390,370 $23,630,354 $24,993,270 $26,275,955 $27,681,286 $28,788,170
Contributions as a percentage of covered payroll 23.66% 25.22% 17.79% 26.09% 27.41% 29.81% 31.13% 32.97%
Notes to Schedule
Valuation date: 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation 2.75% for 2015 to 2019, and 2.625% for 2020, and 2.50% for 2021 and 2022
Salary increases
Investment rate of return
Retirement age
Mortality
*Fiscal year 2015 was the 1st year of implementation
Varies by entry age and service
7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, and 7.00%
for 2021 and 2022, net of administrative expenses, including inflation
The probabilities of Retirement are based on the CalPERS Experience
Study.
The probabilities of mortality are based on the CalPERS Experience
Study. Pre-retirement and Post-retirement mortality rates include 20
years of projected mortality improvement using Scale AA published by
the Society of Actuaries for 2015 to 2018. For 2019, 2020, 2021, and
2022, pre-retirement and post-retirement mortality rates include 15 years
of projected mortality improvement using 90% of Scale MP-2016
published by the Society of Actuaries.
107 370
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022
Safety Agent Multiple-Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021
Total Pension Liability
Service cost $5,143,842 $4,968,087 $5,329,842 $6,264,307 $6,511,672 $6,379,124 $6,880,000 $7,072,216
Interest on total pension liability 18,899,544 19,398,484 20,134,558 21,238,842 22,129,483 23,249,091 24,284,010 25,441,168
Changes of benefit terms
Changes of assumptions (4,789,129)18,010,606 (1,293,579)
Difference between expected and actual experience (4,226,388) (915,267) 4,520,149 1,318,613 2,853,684 742,624 1,772,836
Benefit payments, including refunds of employee
contributions (13,161,296) (13,556,606) (14,463,995) (14,760,979) (15,629,698) (15,909,734) (16,384,059) (17,313,787)
Net change in total pension liability 10,882,090 1,794,448 10,085,138 35,272,925 13,036,491 16,572,165 15,522,575 16,972,433
Total pension liability - beginning 256,002,648 266,884,738 268,679,186 278,764,324 314,037,249 327,073,740 343,645,905 359,168,480
Total pension liability - ending (a)$266,884,738 $268,679,186 $278,764,324 $314,037,249 $327,073,740 $343,645,905 $359,168,480 $376,140,913
Plan fiduciary net position
Contributions - employer $6,535,399 $7,191,715 $8,535,737 $8,071,060 $9,323,936 $10,164,921 $11,402,434 $12,413,770
Contributions - employee 2,151,163 1,714,039 1,961,907 1,980,507 2,134,552 2,486,989 2,890,991 2,893,339
Net investment income 29,348,051 4,264,997 950,612 21,553,126 17,363,158 14,404,633 11,506,885 54,912,645
Benefit payments, including refunds of employee
contributions (13,161,296) (13,556,606) (14,463,995) (14,760,979) (15,629,698) (15,909,734) (16,384,059) (17,313,787)
Plan to plan resource movement (229) (512) 20 32
Administrative expense (219,696) (118,968) (283,579) (325,104) (157,625) (326,879) (240,703)
Other miscellaneous income (617,378) 512
Net change in plan fiduciary net position 24,873,317 (605,551) (3,134,936) 16,560,135 12,248,954 10,989,716 9,089,404 52,665,264
Plan fiduciary net position - beginning 170,937,835 195,811,152 195,205,601 192,070,665 208,630,800 220,879,754 231,869,470 240,958,874
Plan fiduciary net position - ending (b)$195,811,152 $195,205,601 $192,070,665 $208,630,800 $220,879,754 $231,869,470 $240,958,874 $293,624,138
Net pension liability - ending (a)-(b) $71,073,586 $73,473,585 $86,693,659 $105,406,449 $106,193,986 $111,776,435 $118,209,606 $82,516,775
Plan fiduciary net position as a percentage of the total
pension liability 73.37% 72.65% 68.90% 66.44% 67.53% 67.47% 67.09% 78.06%
Covered payroll $15,994,412 $16,679,857 $18,986,895 $19,563,549 $21,932,480 $22,975,254 $24,264,339 $24,378,494
Net pension liability as percentage of covered payroll 444.37% 440.49% 456.60% 538.79% 484.19% 486.51% 487.17% 338.48%
Notes to Schedule:
*Fiscal year 2015 was the 1st year of implementation.
Benefit changes.The figures above do not include any liability impact that may have resulted from plan changes which occurred after the
June 30 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a.
Golden Handshakes).
Changes in assumptions: In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019, 2020, and 2021, there
were no changes. In 2015, amounts reported reflect an adjustment of the discount rate form 7.5% (net of administrative expense) to 7.65%
(without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.
108 371
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022
Safety Agent Multiple-Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 2021 2022
Actuarially determined contribution $7,191,715 $8,538,138 $8,071,060 $9,322,781 $10,164,821 $11,401,783 $12,413,770 $13,387,919
Contributions in relation to the actuarially
determined contributions 7,191,715 8,538,138 8,071,060 9,322,781 10,164,821 11,401,783 12,413,770 13,387,919
Contribution deficiency (excess)$0 $0 $0 $0 $0 $0 $0 $0
Covered payroll $16,679,857 $18,986,895 $19,563,549 $21,932,480 $22,975,254 $24,264,339 $24,378,494 $24,325,363
Contributions as a percentage of covered payroll 43.12%44.97% 41.26% 42.51% 44.24% 46.99% 50.92% 55.04%
Notes to Schedule
Valuation date:6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation 2.75% for 2015 to 2019, and 2.625% for 2020, and 2.50% for 2021 and 2022
Salary increases Varies by entry
Investment rate of return 7.50% for 2015
to 2018, 7.375%
Retirement age The
Mortality The
probabilities of
mortality are
based on the
CalPERS
Experience
Study. Pre-
*Fiscal year 2015 was the 1st year of implementation
109 372
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS
Retiree Healthcare OPEB Plan - Agent Multiple Employer
Last 10 fiscal years*
(Amounts in 000's)
Measurement Date 6/30/17 6/30/18 6/30/2019 6/30/2020 6/30/2021
Total OPEB Liability
Service Cost $1,574 $1,535 $1,558 $1,604 $1,516
Interest 5,087 5,325 5,568 5,952 6,058
Changes in benefit terms
Differences between expected and actual experience 91 2,895 (3,332)
Changes of assumptions (672)(1,859)1,446
Benefit payments (2,901)(3,326)(3,378)(4,052)(4,009)
Net change in total OPEB liability 3,760 3,625 5,971 1,645 1,679
Total OPEB liability - beginning 75,240 79,000 82,625 88,596 90,241
Total OPEB liability - ending (a)$79,000 $82,625 $88,596 $90,241 $91,920
Plan fiduciary net position
Contributions - employer $3,703 $4,128 $4,180 $4,854 $4,810
Contributions - employee
Net investment income 1,803 1,566 1,402 838 7,141
Administrative expense (9)(37)(5)(12)(9)
Benefit payments (2,901)(3,326)(3,378)(4,052)(4,009)
Net change in plan fiduciary net position 2,596 2,331 2,199 1,628 7,933
Plan fiduciary net position - beginning 17,114 19,710 22,041 24,240 25,868
Plan fiduciary net position - ending (b)$19,710 $22,041 $24,240 $25,868 $33,801
Net OPEB liability - ending (a)-(b)$59,290 $60,584 $64,356 $64,373 $58,119
Plan fiduciary net position as a percentage of the total OPEB liability 24.95%26.68%27.36%28.67%36.77%
Covered-employee payroll $26,539 $26,986 $27,662 $28,215 $26,824
Net OPEB liability as a percentage of covered-employee payroll 223.41% 224.50% 232.65% 228.15% 216.67%
* Fiscal year 2018 was the first year of implementation.
110 373
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2022
SCHEDULE OF CONTRIBUTIONS
Retiree Healthcare OPEB Plan - Agent Multiple Employer
Last 10 fiscal years*
(Amounts in 000's)
Fiscal Year Ended June 30, 2018 2019 2020 2021 2022
Actuarially determined contribution $6,279 $6,839 $6,995 $7,253 $7,373
Contributions in relation to the
actuarially determined contribution 4,128 4,180 4,854 4,810 4,869
Contribution deficiency (excess) $2,151 $2,659 $2,141 $2,443 $2,504
Covered-employee payroll $26,986 $27,662 $28,215 $26,824 $25,079
Contributions as a percentage of
covered-employee payroll 15.30%15.11%17.20%17.93%19.41%
*Fiscal year 2018 was the first year of implementation.
Valuation Date •June 30, 2019
Contribution Policy • City contributes $802,000 per year into trust
Actuarial Cost Method •Entry Age Normal, Level Percentage of Payroll
Amortization Method •Level dollar
Amortization Period •Average of 21 years remaining for 2021/22
•6.75% at June 30, 2020
•6.75% at June 30, 2019
•Expected City contributions projected to keep sufficient plan assets to pay all
benefits from trust.
Inflation •2.75% per annum
Salary Increases •Aggregate - 3% annually
•Merit - CalPERS 1997-2015 Experience Study
Healthcare/Medical Trend •Non-Medicare - 7.00% for 2022, decreasing to an ultimate rate of 4.0% in
2076 and later years
•Medicare - 6.1% for 2022, decreasing to an ultimate rate of 4.0% in 2076 and
later yearsMortality, Retirement, Disability, Termination •CalPERS 1997-2015 Experience Study
Mortality Improvement •Mortality projected fully generational with Scale MP-2019
Healthcare participation for future retirees •100% if covered, 95% if waived
Retiree Healthcare OPEB Plan - Agent Multiple Employer
NOTES TO SCHEDULE OF EMPLOYER CONTRIBUTION
Methods and Assumptions for Actuarially Determined Contribution
Discount Rate and Long-Term Expected
Rate of Return on Assets
111 374
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375
SUPPLEMENTARY INFORMATION
376
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377
GENERAL FUND
The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund. The General Fund is comprised of
the following:
GENERAL PURPOSE FUND
This fund accounts for resources traditionally associated with government, such as administration, public
safety, library, parks maintenance, and recreation, outside of those accounted for in other funds.
MEASURE W FUND
This fund accounts for revenue as the result of the voter-approved one-half percent sales and use tax that
was passed on November 3, 2015. The tax went into effect April 1, 2016 and will last for 30 years until
March 31, 2046. Revenues are committed for maintenance and enhancement of local services.
115 378
General Purpose Measure W Total
ASSETS
Cash and investments $41,281,273 $8,780,342 $50,061,615
Receivables:
Accounts 15,224,674 3,078,388 18,303,062
Accrued interest 161,122 161,122
Leases 13,455,776 13,455,776
Due from other funds 1,270,000 1,270,000
Due from Conference Center 40,379 40,379
Inventory 4,099 4,099
Restricted cash and investments 152,797 152,797
Properties held for redevelopment 14,763,033 14,763,033
Total Assets $86,353,153 $11,858,730 $98,211,883
LIABILITIES
Accounts payable $4,582,555 $6,891 $4,589,446
Accrued salaries and benefits 1,766,827 1,766,827
Other payable 842,046 842,046
Deposits 1,159,644 1,159,644
Total Liabilities 8,351,072 6,891 8,357,963
DEFERRED INFLOWS OF RESOURCES
Related to leases 13,207,264 13,207,264
FUND BALANCES
Nonspendable 4,099 4,099
Restricted 14,763,033 14,763,033
Committed 4,244,813 11,839,164 16,083,977
Assigned 7,469,764 12,675 7,482,439
Unassigned 38,313,108 38,313,108
Total Fund Balances 64,794,817 11,851,839 76,646,656
Total Liabilities and Fund Balances $86,353,153 $11,858,730 $98,211,883
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING BALANCE SHEETS
JUNE 30, 2022
116 379
General Purpose Measure W Total
REVENUES
Property taxes $49,779,284 $49,779,284
Sales taxes 22,361,011 $15,399,766 37,760,777
Transient occupancy taxes 12,135,638 12,135,638
Franchise Fees 4,863,076 4,863,076
Other taxes 6,537,423 6,537,423
Intergovernmental 3,196,346 3,196,346
Interest and rentals 1,553,209 1,553,209
Licenses and permits 14,062,474 14,062,474
Charges for services 9,747,605 9,747,605
Fines and forfeitures 700,961 700,961
Other 515,004 515,004
Total Revenues 125,452,031 15,399,766 140,851,797
EXPENDITURES
Current:
City Council 252,677 252,677
City Clerk 887,678 887,678
City Treasurer 39,852 39,852
City Attorney 1,138,457 1,138,457
City Manager 3,911,694 279,786 4,191,480
Finance 3,148,914 3,148,914
Non-departmental 2,580,748 2,580,748
Human Resources 2,065,927 2,065,927
Fire 32,560,468 32,560,468
Police 33,281,487 33,281,487
Public Works 6,294,564 6,294,564
Parks and Recreation 18,092,526 18,092,526
Library 6,495,279 6,495,279
Economic and Community Development 11,006,922 11,006,922
Total Expenditures 121,757,193 279,786 122,036,979
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,694,838 15,119,980 18,814,818
OTHER FINANCING SOURCES (USES)
Gain from sale of property 1,507,641 1,507,641
Transfers in 4,763,729 4,763,729
Transfers out (10,033,749) (11,201,861) (21,235,610)
Total Other Financing Sources (Uses)(3,762,379) (11,201,861) (14,964,240)
Net Change in Fund Balances before special items (67,541) 3,918,119 3,850,578
SPECIAL ITEMS
Remittance of land sale proceeds (2,962,923)(2,962,923)
Net Change in Fund Balances (3,030,464)887,655
Fund balance - July 1 67,825,281 7,933,720 75,759,001
Fund balance - June 30 $64,794,817 $11,851,839 $76,646,656
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022
117 380
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $41,074,710 $41,074,710 $49,779,284 $8,704,574
Sales taxes 19,531,177 20,281,177 22,361,011 2,079,834
Transient occupancy taxes 7,085,194 8,585,194 12,135,638 3,550,444
Franchise fees 4,600,000 4,600,000 4,863,076 263,076
Other taxes 3,614,753 3,614,753 6,537,423 2,922,670
Intergovernmental 2,325,338 5,818,982 3,196,346 (2,622,636)
Interest and rentals 3,564,976 3,504,976 1,553,209 (1,951,767)
Licenses and permits 16,453,166 16,453,166 14,062,474 (2,390,692)
Charges for services 9,287,470 7,848,478 9,747,605 1,899,127
Fines and forfeitures 676,975 676,975 700,961 23,986
Other 232,718 394,382 515,004 120,622
Amounts available for appropriation 108,446,477 112,852,793 125,452,031 12,599,238
Charges to appropriations (outflows)
City Council 292,426 292,427 252,677 39,750
City Clerk 1,151,844 1,231,044 887,678 343,366
City Treasurer 160,245 160,244 39,852 120,392
City Attorney 910,049 910,049 1,138,457 (228,408)
City Manager 3,214,467 4,106,430 4,159,376 (52,946)
Finance 3,807,781 4,385,682 3,603,809 781,873
Non-departmental 1,294,252 1,369,252 2,581,079 (1,211,827)
Human Resources 2,042,597 2,307,004 2,184,942 122,062
Fire 29,508,065 29,892,151 32,975,264 (3,083,113)
Police 32,386,774 32,843,169 33,383,916 (540,747)
Public Works 5,978,429 6,396,059 6,743,595 (347,536)
Parks and Recreation 16,729,027 18,371,855 18,920,003 (548,148)
Library 6,221,935 6,897,585 6,495,735 401,850
Economic and Community Development 8,227,651 16,293,222 15,860,574 432,648
Total charges to appropriations 111,925,542 125,456,173 129,226,957 (3,770,784)
OTHER FINANCING SOURCES (USES)
Gain from sale of property 630,000 690,000 1,507,641 817,641
Transfers in 1,187,080 5,519,792 4,763,729 (756,063)
Transfers out (1,125,000) (13,098,660) (10,033,749) 3,064,911
Total Other Financing Sources (Uses) 692,080 (6,888,868) (3,762,379) 3,126,489
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS (2,786,985) (19,492,248) (7,537,305) 11,954,943
SPECIAL ITEMS
Remittance of land sale proceeds (2,962,923) (2,962,923)
Net Change in Fund Balances ($2,786,985) ($19,492,248)(10,500,228) $8,992,020
Fund Balance - July 1 67,825,281
Adjustment to budgetary basis:
Encumbrance adjustments 7,469,764
Fund Balance - June 30 $64,794,817
(Continued)
Budgeted Amounts
General Purpose
118 381
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes
Sales taxes $12,708,000 $12,708,000 $15,399,766 $2,691,766
Transient occupancy taxes
Franchise fees
Other taxes
Intergovernmental
Interest and rentals
Licenses and permits
Charges for services
Fines and forfeitures
Other
Amounts available for appropriation 12,708,000 12,708,000 15,399,766 2,691,766
Charges to appropriations (outflows)
City Council
City Clerk
City Treasurer
City Attorney
City Manager 393,090 405,765 292,461 113,304
Finance
Non-departmental
Human Resources
Fire
Police
Public Works
Parks and Recreation
Library
Economic and Community Development
Total charges to appropriations 393,090 405,765 292,461 113,304
OTHER FINANCING SOURCES (USES)
Gain from sale of property
Transfers in
Transfers out (8,646,783) (21,417,675) (11,201,861) 10,215,814
Total Other Financing Sources (Uses)(8,646,783) (21,417,675) (11,201,861) 10,215,814
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS 3,668,127 (9,115,440)3,905,444 13,020,884
SPECIAL ITEMS
Remittance of land sale proceeds
Net Change in Fund Balances $3,668,127 ($9,115,440)3,905,444 $13,020,884
Fund Balance - July 1 7,933,720
Adjustment to budgetary basis:
Encumbrance adjustments 12,675
Fund Balance - June 30 $11,851,839
(Continued)
Budgeted Amounts
Measure W
119 382
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $41,074,710 $41,074,710 $49,779,284 $8,704,574
Sales taxes 32,239,177 32,989,177 37,760,777 4,771,600
Transient occupancy taxes 7,085,194 8,585,194 12,135,638 3,550,444
Franchise fees 4,600,000 4,600,000 4,863,076 263,076
Other taxes 3,614,753 3,614,753 6,537,423 2,922,670
Intergovernmental 2,325,338 5,818,982 3,196,346 (2,622,636)
Interest and rentals 3,564,976 3,504,976 1,553,209 (1,951,767)
Licenses and permits 16,453,166 16,453,166 14,062,474 (2,390,692)
Charges for services 9,287,470 7,848,478 9,747,605 1,899,127
Fines and forfeitures 676,975 676,975 700,961 23,986
Other 232,718 394,382 515,004 120,622
Amounts available for appropriation 121,154,477 125,560,793 140,851,797 15,291,004
Charges to appropriations (outflows)
City Council 292,426 292,427 252,677 39,750
City Clerk 1,151,844 1,231,044 887,678 343,366
City Treasurer 160,245 160,244 39,852 120,392
City Attorney 910,049 910,049 1,138,457 (228,408)
City Manager 3,607,557 4,512,195 4,451,837 60,358
Finance 3,807,781 4,385,682 3,603,809 781,873
Non-departmental 1,294,252 1,369,252 2,581,079 (1,211,827)
Human Resources 2,042,597 2,307,004 2,184,942 122,062
Fire 29,508,065 29,892,151 32,975,264 (3,083,113)
Police 32,386,774 32,843,169 33,383,916 (540,747)
Public Works 5,978,429 6,396,059 6,743,595 (347,536)
Parks and Recreation 16,729,027 18,371,855 18,920,003 (548,148)
Library 6,221,935 6,897,585 6,495,735 401,850
Economic and Community Development 8,227,651 16,293,222 15,860,574 432,648
Total charges to appropriations 112,318,632 125,861,938 129,519,418 (3,657,480)
OTHER FINANCING SOURCES (USES)
Gain from sale of property 630,000 690,000 1,507,641 817,641
Transfers in 1,187,080 5,519,792 4,763,729 (756,063)
Transfers out (9,771,783) (34,516,335) (21,235,610) 13,280,725
Total Other Financing Sources (Uses)(7,954,703) (28,306,543) (14,964,240) 13,342,303
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS 881,142 (28,607,688) (3,631,861) 24,975,827
SPECIAL ITEMS
Remittance of land sale proceeds (2,962,923) (2,962,923)
Net Change in Fund Balances $881,142 ($28,607,688) (6,594,784) $22,012,904
Fund Balance - July 1 75,759,001
Adjustment to budgetary basis:
Encumbrance adjustments 7,482,439
Fund Balance - June 30 $76,646,656
Budgeted Amounts
Total
120 383
NON-MAJOR GOVERNMENTAL FUNDS
Special revenue funds are used to account for revenue sources that are restricted by law or administrative
action to expenditures for specified purposes. Special revenue funds used by the City of South San
Francisco include:
Gas Tax – Accounts for State monies received and expended for street improvements, repairs,
engineering, and administration under Streets and Highway Code Sections 2105, 2106, 2107, and
2107.5. Includes sales taxes on gasoline received from the State’s Traffic Congestion Relief Fund.
Developer Contributions – Accounts for fees deposited for planning and engineering reviews or
for future project development.
Community Development Block Grant – Accounts for Federal monies received to be expended
for development of jobs and suitable housing for low-income residents.
Maintenance Districts – Accounts for a portion of property tax dedicated to provide for the
maintenance of landscaped areas within housing developments.
Transportation Sales Tax – Accounts for the sales tax that provides resources for street
improvements and repairs.
Solid Waste Reduction – Accounts for revenues and expenditures associated with the waste
reduction, recycling, composting and household hazardous waste programs for residents and
businesses.
Supplemental Law Enforcement Services – Accounts for State monies provided for designated
Police department services.
City Programs – Organizations and individuals provide revenues that fund certain programs and
services.
Affordable Housing Trust – The inclusionary housing requirement in the City provides that 20%
of new residential housing units (for projects of 4 or more units) be affordable. These in-lieu fees
(in-lieu of production of affordable housing units by the developer) provide new residential
development’s share of affordable housing units.
PEG Equipment and Access – Accounts for the one percent of money set-aside from cable
franchise fees that are used to support public, educational and governmental (PEG) channels.
Transit Station Enhancement in-Lieu Fee – Accounts for revenues that are collected as a
negotiated community benefit.
Road Maintenance and Rehabilitation – Accounts for State monies received and expended for
road maintenance and rehabilitation pursuant to Senate Bill 1, approved in 2017.
San Mateo County (SMC) Measure W ½ Sales Tax – Accounts for the City’s portion of the
special half cent sales tax receipts restricted for congestion relief and transit improvements.
121 384
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Capital projects funds are used to account for resources used for the acquisition and construction of
capital facilities or major capital equipment, except for capital improvements financed by proprietary
funds. Capital projects funds used at the City of South San Francisco include:
Public Safety Impact Fee – These fees are to provide new development’s share of funding for
the replacement of public safety capital equipment, vehicles and facilities.
Oyster Point Improvements Impact Fees – These fees provide new development’s share of
funding for the Oyster Point at Highway 101 interchange improvements.
Sewer Capacity Charges – Accounts for cost recovery charged to new development based on
proportional benefit, associated with providing sewer collection and treatment capacity to new
development, both through existing infrastructure provided, and through future capital projects
not funded by other sources.
Oyster Point Development Impact Fees – Accounts for expenditures associated with the
acquisition, construction, or improvement related to Oyster Point Development.
Park Land Acquisition Fee – Accounts for monies received and expended pursuant to SSFMC
Chapter 8.67 and Mitigation Fee Act for park land acquisition.
Park Construction Fee – Accounts for monies received and expended pursuant to SSFMC
Chapter 8.67 and Mitigation Fee Act for park construction.
Bicycle and Pedestrian Impact Fee – Accounts for monies received and expended pursuant to
SSFMC Chapter 8.68 for mitigation of impacts of new development on bicycle and pedestrian
improvements in the City.
Commercial Linkage Impact Fee – Accounts for affordable housing funding created by new
commercial development.
Library Impact Fee – Accounts for citywide fees to provide new development’s share of the
expansion, rehabilitation and replacement of library facilities and collections to accommodate the
increased demand for library services caused by future development
Debt service funds are used to account for resources used for the payment of debt service on long-term
debt. Debt service funds used at the City of South San Francisco include:
Debt Service – Accounts for expenditures associated with the acquisition, construction, and
installation of certain capital improvements constituting the new City police station located within
the City’s new Civic Center Campus, and related improvements, facilities and equipment, and
pay the costs incurred in connection with the issuance of the Series 2020A Bonds, as well as
capital improvements constituting the City’s new Civic Center Campus, and related
improvements, facilities and equipment, and pay the costs incurred in connection with the
issuance of the Series 2021A Bonds.
122 385
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386
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2022
SPECIAL REVENUE FUNDS
Community
Developer Development Maintenance Transportation
Gas Tax Contributions Block Grant Districts Sales Tax
ASSETS
Cash and investments $163,649 $11,435,046 $4,824,117 $3,680,937
Receivables:
Accounts 123,159 453,481 $249,130 55,850 22,727
Accrued interest 1,099 29,183 10,014
Loans 677,858
Restricted cash and investments 2,091
Total Assets $287,907 $11,917,710 $929,079 $4,879,967 $3,713,678
LIABILITIES
Liabilities:
Accounts payable $161,397 $30,630 $20,261
Other payable 524,787
Deposits 4,188,966
Unearned revenue
Due to other funds 210,000
Total Liabilities 4,350,363 765,417 20,261
Fund Balances:
Restricted $287,907 7,567,347 163,662 4,859,706 $3,713,678
Total Fund Balances 287,907 7,567,347 163,662 4,859,706 3,713,678
Total Liabilities and Fund Balances $287,907 $11,917,710 $929,079 $4,879,967 $3,713,678
124 387
SPECIAL REVENUE FUNDS
Road
Solid Supplemental Affordable PEG Transit Station Maintenance
Waste Law Enforce- City Housing Equipment and Enhancement and
Reduction ment Services Programs Trust Access In-Lieu Fee Rehabilitation
$774,021 $965 $11,008,982 $872,019 $1,690,372 $2,490,013 $1,898,482
34,871 332 39,335 119,856
134 35,175 2,815 5,115 6,079 4,677
15,106
$808,892 $1,099 $11,044,157 $890,272 $1,734,822 $2,496,092 $2,023,015
$2,104 $135,585 $43,539
11,010
217,980
2,104 135,585 272,529
806,788 $1,099 10,908,572 617,743 $1,734,822 $2,496,092 $2,023,015
806,788 1,099 10,908,572 617,743 1,734,822 2,496,092 2,023,015
$808,892 $1,099 $11,044,157 $890,272 $1,734,822 $2,496,092 $2,023,015
(Continued)
125 388
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2022
SPECIAL
REVENUE
FUND CAPITAL PROJECTS FUNDS
SMC Measure W Public Oyster Point Sewer Oyster Point
1/2 Cent Safety Improvement Capacity Development
Sales Tax Impact Fee Impact Fees Charges Impact Fees
ASSETS
Cash and investments $1,278,810 $2,546,153 $29,149 $10,382,735 $38,906
Receivables:
Accounts 83,097 98,053
Accrued interest 2,770 5,456 687 25,929
Loans
Restricted cash and investments
Total Assets $1,364,677 $2,551,609 $29,836 $10,408,664 $136,959
LIABILITIES
Liabilities:
Accounts payable $37,072 $143,943
Other payable
Deposits
Unearned revenue
Due to other funds
Total Liabilities 37,072 143,943
Fund Balances:
Restricted $1,364,677 2,514,537 $29,836 $10,408,664 (6,984)
Total Fund Balances 1,364,677 2,514,537 29,836 10,408,664 (6,984)
Total Liabilities and Fund Balances $1,364,677 $2,551,609 $29,836 $10,408,664 $136,959
126 389
DEBT SERVICE
CAPITAL PROJECTS FUNDS FUND
Total
Park Land Park Bicycle and Commercial Nonmajor
Acquisition Construction Pedestrian Linkage Library Debt Governmental
Fee Fee Impact Fee Impact Fee Impact Fee Service Funds
$3,223,001 $8,895,473 $185,475 $6,923,491 $673 $72,342,469
1,279,891
7,071 19,439 428 30,107 1 186,179
2,000,000 2,692,964
2,091
$3,230,072 $8,914,912 $185,903 $8,953,598 $674 $76,503,594
$39,500 $614,031
535,797
4,188,966
217,980
210,000
39,500 5,766,774
$3,230,072 $8,914,912 $185,903 8,914,098 $674 70,736,820
3,230,072 8,914,912 185,903 8,914,098 674 70,736,820
$3,230,072 $8,914,912 $185,903 $8,953,598 $674 $76,503,594
127 390
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022
SPECIAL REVENUE FUNDS
Community
Developer Development Maintenance Transportation
Gas Tax Contributions Block Grant Districts Sales Tax
REVENUES
Property taxes $2,220,652
Sales taxes
Other taxes $2,122,941
Intergovernmental $1,716,706 $664,707
Interest and rentals (12,714) ($332,865) 15,258 (114,917)
Charges for services 2,613,506 203,639
Other 37,299
Total Revenues 1,703,992 2,317,940 883,604 2,220,652 2,008,024
EXPENDITURES
Current:
Fire
Police
Public works
Parks and recreation 2,203,316
Economic and community development 529,538 828,328
Other
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 529,538 828,328 2,203,316
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,703,992 1,788,402 55,276 17,336 2,008,024
OTHER FINANCING SOURCES (USES)
Transfers in 8,496 25,968 2,362
Transfers out (1,746,357) (674,452)(821,307)
Total Other Financing Sources (Uses)(1,746,357) (665,956)25,968 (818,945)
Net Change in Fund Balances (42,365) 1,122,446 55,276 43,304 1,189,079
Fund balance - July 1 330,272 6,444,901 108,386 4,816,402 2,524,599
Fund balance - June 30 $287,907 $7,567,347 $163,662 $4,859,706 $3,713,678
128 391
SPECIAL REVENUE FUNDS
Road
Solid Supplemental Affordable PEG Transit Station Maintenance
Waste Law Enforce- City Housing Equipment and Enhancement and
Reduction ment Services Programs Trust Access In-Lieu Fee Rehabilitation
$166,041
$1,343,632
(1,505) ($358,098) ($31,346) ($58,804) ($70,109) (53,544)
$209,224 1,041,789
362,502 5,450 157,275 1,253,473
209,224 164,536 1,046,193 (25,896)98,471 1,183,364 1,290,088
64,536
75,656
1,049,683 185,386
75,656 64,536 1,049,683 185,386
133,568 100,000 (3,490) (211,282)98,471 1,183,364 1,290,088
(28,541) (100,000) (489,105)(464,237) (296,282)
(28,541) (100,000) (489,105)(464,237) (296,282)
105,027 (492,595) (211,282)98,471 719,127 993,806
701,761 1,099 11,401,167 829,025 1,636,351 1,776,965 1,029,209
$806,788 $1,099 $10,908,572 $617,743 $1,734,822 $2,496,092 $2,023,015
(Continued)
129 392
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2022
SPECIAL
REVENUE
FUND CAPITAL PROJECTS FUNDS
SMC Measure W Public Oyster Point Sewer Oyster Point
1/2 Cent Safety Improvement Capacity Development
Sales Tax Impact Fee Impact Fees Charges Impact Fees
REVENUES
Property taxes
Sales taxes $825,500
Other taxes
Intergovernmental $13,302,803
Interest and rentals (31,622) ($62,973) ($8,080) ($298,394)
Charges for services 1,744,396 1,444,207 3,130,802 696,031
Other
Total Revenues 793,878 1,681,423 1,436,127 2,832,408 13,998,834
EXPENDITURES
Current:
Fire 37,072
Police
Public works 2,800 14,058,921
Parks and recreation
Economic and community development
Other
Debt service:
Principal repayments 1,445,000
Interest and fiscal charges
Total Expenditures 37,072 1,445,000 2,800 14,058,921
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 793,878 1,644,351 (8,873) 2,829,608 (60,087)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (43,462) (629,200) (147,072)
Total Other Financing Sources (Uses) (43,462) (629,200) (147,072)
Net Change in Fund Balances 750,416 1,015,151 (8,873) 2,682,536 (60,087)
Fund balance - July 1 614,261 1,499,386 38,709 7,726,128 53,103
Fund balance - June 30 $1,364,677 $2,514,537 $29,836 $10,408,664 ($6,984)
130 393
DEBT SERVICE
CAPITAL PROJECTS FUNDS FUND
Total
Park Land Park Bicycle and Commercial Nonmajor
Acquisition Construction Pedestrian Linkage Library Debt Governmental
Fee Fee Impact Fee Impact Fee Impact Fee Service Funds
$2,220,652
825,500
2,288,982
17,027,848
($79,929) ($223,229) ($4,891) ($347,603) ($19) (2,075,384)
1,707,708 3,963,057 73,981 3,425,285 693 20,254,318
1,815,999
1,627,779 3,739,828 69,090 3,077,682 674 42,357,915
37,072
64,536
14,137,377
2,203,316
1,357,866
4,375,209 5,610,278
$3,190,000 4,635,000
5,097,833 5,097,833
4,375,209 8,287,833 33,143,278
1,627,779 3,739,828 69,090 (1,297,527) 674 (8,287,833) 9,214,637
8,287,833 8,324,659
(1,480) (169,698)(5,611,193)
(1,480) (169,698) 8,287,833 2,713,466
1,626,299 3,570,130 69,090 (1,297,527) 674 11,928,103
1,603,773 5,344,782 116,813 10,211,625 58,808,717
$3,230,072 $8,914,912 $185,903 $8,914,098 $674 $70,736,820
131 394
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
GAS TAX
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Other taxes
Intergovernmental $1,886,008 $1,716,706 ($169,302) $610,685 $664,707 $54,022
Interest and rentals 15,000 (12,714) (27,714) 72,569 15,258 (57,311)
Charges for services 203,639 203,639
Other
Total Revenues 1,901,008 1,703,992 (197,016) 683,254 883,604 200,350
EXPENDITURES
Current:
Police
Public works
Parks and recreation
Economic and community development 856,551 1,072,940 (216,389)
Other
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 856,551 1,072,940 (216,389)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,901,008 1,703,992 (197,016) (173,297) (189,336) (16,039)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (2,421,465) (1,746,357) 675,108
Total Other Financing Sources (Uses) (2,421,465) (1,746,357) 675,108
NET CHANGE IN FUND BALANCES ($520,457) (42,365) $478,092 ($173,297) (189,336) ($16,039)
Adjustment to budgetary basis:
Encumbrance adjustments 244,612
Fund balance - July 1 330,272 108,386
Fund balance - June 30 $287,907 $163,662
BLOCK GRANT
COMMUNITY DEVELOPMENT
132 395
MAINTENANCE DISTRICTS SOLID WASTE REDUCTION
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$1,903,851 $2,220,652 $316,801
$1,527,755 $2,122,941 $595,186
25,000 (114,917) (139,917)
$180,000 $209,224 $29,224
1,903,851 2,220,652 316,801 1,552,755 2,008,024 455,269 180,000 209,224 29,224
26,754 (26,754)214,843 75,656 139,187
2,219,453 2,203,316 16,137
126,753 (126,753)
2,219,453 2,230,070 (10,617)214,843 202,409 12,434
(315,602) (9,418) 306,184 1,552,755 2,008,024 455,269 (34,843) 6,815 41,658
25,968 25,968 2,362 2,362
(1,882,795) (821,307) 1,061,488 (106,627) (28,541) 78,086
25,968 25,968 (1,882,795) (818,945) 1,063,850 (106,627) (28,541) 78,086
($289,634) 16,550 $306,184 ($330,040) 1,189,079 $1,519,119 ($141,470) (21,726) $119,744
26,754 126,753
4,816,402 2,524,599 701,761
$4,859,706 $3,713,678 $806,788
(Continued)
TRANSPORTATION SALES TAX
133 396
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Other taxes $100,000 $166,041 $66,041
Intergovernmental
Interest and rentals (1,505) (1,505)($358,098) ($358,098)
Charges for services 1,041,789 $1,041,789
Other 362,502 362,502
Total Revenues 100,000 164,536 64,536 1,046,193 1,046,193
EXPENDITURES
Current:
Police 64,536 (64,536)
Public works
Parks and recreation
Economic and community development
Other 1,049,683 (1,049,683)
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 64,536 (64,536)1,049,683 (1,049,683)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 100,000 100,000 (3,490) (3,490)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (100,000) (100,000)($1,934,611) (489,105) 1,445,506
Total Other Financing Sources (Uses) (100,000) (100,000)(1,934,611) (489,105) 1,445,506
NET CHANGE IN FUND BALANCES ($1,934,611) (492,595) $1,442,016
Adjustment to budgetary basis:
Encumbrance adjustments
Fund balance - July 1 1,099 11,401,167
Fund balance - June 30 $1,099 $10,908,572
CITY PROGRAMSENFORCEMENT SERVICES
SUPPLEMENTAL LAW
134 397
PEG
AFFORDABLE HOUSING TRUST EQUIPMENT AND ACCESS
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$217,980 (217,980)$1,300,000 $1,343,632 $43,632
($31,346) ($31,346) $5,000 ($58,804) ($63,804)(53,544) (53,544)
5,450 5,450 125,000 157,275 32,275
217,980 (25,896) (243,876) 130,000 98,471 (31,529) 1,300,000 1,290,088 (9,912)
374,227 280,336 93,891
374,227 280,336 93,891
(156,247) (306,232) (149,985) 130,000 98,471 (31,529) 1,300,000 1,290,088 (9,912)
(2,477,055) (296,282) 2,180,773
(2,477,055) (296,282) 2,180,773
($156,247) (306,232) ($149,985) $130,000 98,471 ($31,529) ($1,177,055) 993,806 $2,170,861
94,950
829,025 1,636,351 1,029,209
$617,743 $1,734,822 $2,023,015
(Continued)
ROAD MAINTENANCE
AND REHABILITATION
135 398
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2022
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes $600,000 $825,500 $225,500
Other taxes
Intergovernmental
Interest and rentals (31,622) (31,622)
Charges for services
Other
Total Revenues 600,000 793,878 193,878
EXPENDITURES
Current:
Police
Public works
Parks and recreation
Economic and community development
Other
Debt service:
Principal repayments $3,190,000 $3,190,000
Interest and fiscal charges 5,097,833 5,097,833
Total Expenditures 8,287,833 8,287,833
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 600,000 793,878 193,878 (8,287,833) (8,287,833)
OTHER FINANCING SOURCES (USES)
Transfers in 8,287,833 8,287,833
Transfers out (641,753) (43,462) 598,291
Total Other Financing Sources (Uses) (641,753) (43,462) 598,291 8,287,833 8,287,833
NET CHANGE IN FUND BALANCES ($41,753) 750,416 $792,169
Adjustment to budgetary basis:
Encumbrance adjustments
Fund balance - July 1 614,261
Fund balance - June 30 $1,364,677
DEBT SERVICE FUND
SMC MEASURE W
1/2 CENT SALES TAX
136 399
INTERNAL SERVICE FUNDS
Internal service funds account for department services and financing performed for other departments
within the same governmental jurisdiction. Funding comes from charges assessed to the departments
benefiting from the service. Internal service funds used at the City include:
City Service – Accounts for vehicle maintenance and information technology services provided
to City departments.
Self Insurance – Accounts for workers' compensation, general liability and property damage
claim activity and financing is represented in this fund.
Health and Retirement Benefits – Accounts for health and retirement benefits paid on the
behalf of eligible City employees.
Equipment Replacement – Accounts for resources set-aside for the future replacement of City
vehicles and equipment.
137 400
CITY OF SOUTH SAN FRANCISCO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2022
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
ASSETS
Current assets:
Cash and investments $2,901,666 $18,410,189 $10,357,318 $6,728,360 $38,397,533
Receivables:
Accounts
Accrued interest 9,122 52,307 24,769 18,894 105,092
Deposit 216,000 93,790 309,790
Prepaid items 1,204,373 1,204,373
Total current assets 2,910,788 18,678,496 11,680,250 6,747,254 40,016,788
Noncurrent assets:
Capital assets:
Depreciable, net of accumulated depreciation 4,402,557 4,402,557
Total non-current assets 4,402,557 4,402,557
Total Assets 2,910,788 18,678,496 11,680,250 11,149,811 44,419,345
LIABILITIES
Current liabilities:
Accounts payable 125,149 29,571 206,804 68,035 429,559
Other payable 32 32
Current portion of accrued insurance loss 3,047,258 3,047,258
Current portion of compensated absences 64,204 1,156,941 1,221,145
Current portion of long-term debt 144,637 144,637
Total current liabilities 189,353 3,076,829 1,363,745 212,704 4,842,631
Noncurrent liabilities:
Accrued insurance loss 13,436,000 13,436,000
Compensated absences obligation 160,866 567,128 727,994
Total noncurrent liabilities 160,866 13,436,000 567,128 14,163,994
Total Liabilities 350,219 16,512,829 1,930,873 212,704 19,006,625
NET POSITION:
Net investment in capital assets 4,257,919 4,257,919
Unrestricted 2,560,569 2,165,667 9,749,377 6,679,188 21,154,801
Total Net Position $2,560,569 $2,165,667 $9,749,377 $10,937,107 $25,412,720
138 401
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
OPERATING REVENUES
Charges for services $5,387,183 $6,420,013 $15,359,131 $1,370,243 $28,536,570
Total Operating Revenues 5,387,183 6,420,013 15,359,131 1,370,243 28,536,570
OPERATING EXPENSES
Personnel expenses 2,199,493 876,699 15,118,036 18,194,228
Professional services 469,266 98,461 567,727
Program supplies 1,707,775 1,125 328,446 2,037,346
Insurance 12,988 2,610,838 2,623,826
Self-insurance and claims 2,248,076 2,248,076
Repair and maintenance 657,991 198,626 856,617
Utilities 176,937 176,937
Depreciation 967,562 967,562
Other 14,972 541,005 555,977
Total Operating Expenses 5,239,422 5,834,074 15,660,166 1,494,634 28,228,296
Operating Income (Loss)147,761 585,939 (301,035) (124,391) 308,274
NONOPERATING
REVENUES (EXPENSES)
Interest income (104,605) (600,713) (287,019) (217,390) (1,209,727)
Interest expense (6,614)(6,614)
Gain from disposal of capital assets 10,418 10,418
Other 335,290 335,290
Total Nonoperating
Revenues (Expenses)(104,605) (265,423) (287,019) (213,586) (870,633)
Net income (loss) before transfers 43,156 320,516 (588,054) (337,977) (562,359)
TRANSFERS
Transfers in 49,440 250,000 832,865 1,132,305
Change in Net Position 92,596 320,516 (338,054)494,888 569,946
Net Position - July 1 2,467,973 1,845,151 10,087,431 10,442,219 24,842,774
Net Position - June 30 $2,560,569 $2,165,667 $9,749,377 $10,937,107 $25,412,720
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
CITY OF SOUTH SAN FRANCISCO
139 402
CITY OF SOUTH SAN FRANCISCO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2022
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from interfund service provided $5,418,210 $6,755,303 $15,359,131 $1,370,243 $28,902,887
Cash payments to suppliers for goods and services (3,039,929) (2,709,299)(509,095) (6,258,323)
Cash payments to employees for services (2,184,197) (954,835) (16,902,464)(20,041,496)
Cash payments for judgments and claims (1,514,615)(1,514,615)
Net Cash Provided by Operating Activities 194,084 1,576,554 (1,543,333) 861,148 1,088,453
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 49,440 250,000 832,865 1,132,305
Net Cash Provided by Noncapital Financing Activities 49,440 250,000 832,865 1,132,305
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal paid on capital lease (140,892) (140,892)
Interest payments (6,614)(6,614)
Acquisition of capital assets, net (424,683) (424,683)
Proceeds from the sale of capital assets 17,719 17,719
Net Cash Used in Capital and Related Financing Activities (554,470) (554,470)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received (paid)(237,931) (1,361,148) (634,023) (493,331) (2,726,433)
Changes in fair values of investments 131,457 753,848 356,973 272,316 1,514,594
Net Cash Provided by Investing Activities (106,474) (607,300) (277,050) (221,015) (1,211,839)
Net Increase (Decrease) in cash and cash equivalents 137,050 969,254 (1,570,383) 918,528 454,449
Cash and cash equivalents, beginning 2,764,616 17,440,935 11,927,701 5,809,832 37,943,084
Cash and cash equivalents, ending $2,901,666 $18,410,189 $10,357,318 $6,728,360 $38,397,533
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)$147,761 $585,939 ($301,035) ($124,391) $308,274
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation 967,562 967,562
Other non-operating revenue (expenses)335,290 335,290
Net change in assets and liabilities:
Accounts and lease receivables 31,027 31,027
Deposit
Prepaid items (1,204,373)(1,204,373)
Accounts payable (172) (78,136) 84,551 17,948 24,191
Other payable 29 29
Accrued insurance losses 733,461 733,461
Compensated absence obligations 15,468 (122,476)(107,008)
Net Cash Provided by (Used in) Operating Activities $194,084 $1,576,554 ($1,543,333) $861,148 $1,088,453
NONCASH TRANSACTIONS
Retirement of capital assets ($7,301) ($7,301)
140 403
CUSTODIAL FUNDS
Custodial Funds report resources, not in a trust, that are held by the City for other parties outside of the
City’s reporting entity.
SSF Employee Deferred Comp Trust Oversight – This fund is used to pay for the
administrative costs of monitoring the Deferred Compensation Funds on behalf of City
employees. The City does not make any contributions to the fund.
Oyster Point CFD – Accounts for Community Facilities District No. 2021-01 special assessment
collections and debt service payments.
141 404
CITY OF SOUTH SAN FRANCISCO
CUSTODIAL FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2022
SSF Employee
Deferred Comp
Trust Oyster Point
Oversight CFD TOTAL
ASSETS
Cash and investments $139,655 $139,655
Interest receivable 396 396
Restricted cash and investments $20,221,759 20,221,759
Total Assets 140,051 20,221,759 20,361,810
LIABILITIES
Accounts payable 2,500 2,500
Total Liabilities 2,500 2,500
NET POSITION
Restricted for others 137,551 137,551
Restricted for bondholders 20,221,759 20,221,759
Total Net Position $137,551 $20,221,759 $20,359,310
142 405
CITY OF SOUTH SAN FRANCISCO
CUSTODIAL FUNDS
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2022
SSF Employee
Deferred Comp
Trust Oyster Point
Oversight CFD TOTAL
ADDITIONS
Plan contributions $32,041 $32,041
Contribution from property owners $20,764,872 20,764,872
Interest and rentals (4,559) 11,452 6,893
Total Additions 27,482 20,776,324 20,803,806
DEDUCTIONS
Professional services 20,100 20,100
Payments to bondholders 554,565 554,565
Total Deductions 20,100 554,565 574,665
Change in net position 7,382 20,221,759 20,229,141
NET POSITION
Beginning of the year 130,169 130,169
End of the year $137,551 $20,221,759 $20,359,310
143 406
This Page Left Intentionally Blank
407
STATISTICAL SECTION
This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City’s overall financial health. In contrast to the financial
section, the statistical section information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial
performance and well-being have changed over time:
1.Net Position by Component
2.Changes in Net Position
3.Fund Balances of Governmental Funds
4.Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue
source, the property tax:
1.Assessed Value and Estimated Market Value of Taxable Property
2.All Overlapping Property Tax Rates
3.Principal Property Tax Payers
4.Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels
of outstanding debt and the City’s ability to issue additional debt in the future:
1.Ratio of Outstanding Debt by Type
2.Computation of Direct and Overlapping Debt
3.Computation of Legal Bonded Debt Margin
4.Continuing Disclosure Requirements:
a.Revenue Bond Coverage
b.Sewer Debt Service Coverage
c.Bonded Debt Pledge Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City’s financial activities take place:
1.Demographic and Economic Statistics
2.Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information
in the City’s financial report relates to the services the City provides and the activities it performs:
1.Full-Time City Government Employees by Function
2.Operating Indicators by Function/Program
3.Capital Asset Statistics by Function/Program
145 408
STATISTICAL SECTION - (Continued)
Miscellaneous Information
1.Collection and Use of 1% Special Transient Occupancy Tax
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive
Financial Reports for the relevant year.
146 409
2013 2014 2015 2016 2017
Governmental activities
Net investment in capital assets $216,508,668 $230,440,390 $230,517,037 $231,142,079 $254,344,554
Restricted 30,514,986 42,367,623 49,311,828 52,406,602 54,478,093
Unrestricted 8,021,490 (12,317,511) (134,389,522) (120,119,617) (86,808,434)
Total governmental activities net position $255,045,144 $260,490,502 $145,439,343 $163,429,064 $222,014,213
Business-type activities
Net investment in capital assets $72,217,660 $78,045,318 $78,598,277 $83,930,073 $86,167,704
Restricted
Unrestricted 13,353,988 15,367,085 4,196,654 6,243,225 7,199,925
Total business-type activities net position $85,571,648 $93,412,403 $82,794,931 $90,173,298 $93,367,629
Primary government
Net investment in capital assets $288,726,328 $308,485,708 $309,115,314 $315,072,152 $340,512,258
Restricted 30,514,986 42,367,623 49,311,828 52,406,602 54,478,093
Unrestricted 21,375,478 3,049,574 (130,192,868) (113,876,392) (79,608,509)
Total primary government net position $340,616,792 $353,902,905 $228,234,274 $253,602,362 $315,381,842
2018 2019 2020 2021 2022
Governmental activities
Net investment in capital assets $254,570,044 $271,349,364 $296,243,640 $316,169,957 $452,722,446
Restricted 96,316,988 117,752,590 138,701,991 160,119,056 139,059,768
Unrestricted (129,833,581) (114,028,420) (130,288,161) (144,181,245) (194,945,964)
Total governmental activities net position $221,053,451 $275,073,534 $304,657,470 $332,107,768 $396,836,250
Business-type activities
Net investment in capital assets $90,097,907 $100,463,280 $111,968,328 $123,628,942 $133,598,554
Restricted
Unrestricted 3,227,395 44,966 2,040,842 7,208,752 4,271,663
Total business-type activities net position $93,325,302 $100,508,246 $114,009,170 $130,837,694 $137,870,217
Primary government
Net investment in capital assets $344,667,951 $371,812,644 $408,211,968 $439,798,899 $586,321,000
Restricted 96,316,988 117,752,590 138,701,991 160,119,056 139,059,768
Unrestricted (126,606,186) (113,983,454) (128,247,319) (136,972,493) (190,674,301)
Total primary government net position $314,378,753 $375,581,780 $418,666,640 $462,945,462 $534,706,467
Source: City of South San Francisco, Department of Finance
(a) The City adjusted certain beginning balances during fiscal years 2014-15 and 2017-18 due to the implementation of GASB
Statements 68 and 75. Financial data shown for the proceeding year were not adjusted for the presentation.
CITY OF SOUTH SAN FRANCISCO
(accrual basis of accounting)
Last Ten Fiscal Years (a)
Net Position by Component
($200)
($100)
$0
$100
$200
$300
$400
$500
$600
$700
$800
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Unrestricted
Restricted
Invested in Capital Assets Net of
Related Debt
147 410
CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2013 2014 2015 2016
Expenses
Governmental Activities:
General Government $8,360,945 $7,155,035 $8,421,857 $9,044,518
Fire Department 22,746,291 21,200,903 22,005,883 22,488,964
Police Department 24,756,958 24,376,379 23,910,436 23,158,168
Public Works 15,773,710 14,980,417 14,493,039 11,916,572
Park, Recreation and Maintenance Services 12,570,236 12,658,309 12,383,880 12,901,657
Library 4,615,967 4,310,550 4,300,885 4,442,577
Economic and Community Development 16,126,427 5,525,541 5,928,316 7,603,275
Interest on Long -Term Debt 52,139
Total Governmental Activities Expenses 105,002,673 90,207,134 91,444,296 91,555,731
Business-Type Activities:
Sewer Rental 20,870,522 19,301,103 23,969,579 18,273,580
Parking District 792,609 943,859 503,014 894,769
Storm Water 1,655,950 1,078,868 1,234,616 1,289,465
Total Business-Type Activities Expenses 23,319,081 21,323,830 25,707,209 20,457,814
Total Primary Government Expenses $128,321,754 $111,530,964 $117,151,505 $112,013,545
Program Revenues
Governmental Activities:
Charges for Services:
General Government $1,951,016 $5,785,598 $3,946,302 $4,194,563
Fire Department 2,987,956 3,304,952 3,520,275 3,450,524
Police Department 2,640,146 2,805,640 2,370,736 2,076,837
Public Works 2,926,227 4,734,813 5,071,729 10,361,525
Park, Recreation and Maintenance Services 3,433,567 3,571,947 3,708,272 3,744,137
Library 125,416 138,827 120,850 164,271
Economic and Community Development 3,457,020 5,800,849 5,337,177 6,131,463
Operating Grants and Contributions 5,455,010 5,601,916 5,753,845 5,581,492
Capital Grants and Contributions 4,036,786 1,538,225 632,735 1,147,337
Total Government Activities Program Revenues 27,013,144 33,282,767 30,461,921 36,852,149
Business-Type Activities:
Charges for Services:
Sewer Rental 19,338,107 19,155,467 19,798,033 19,569,341
Parking District 732,932 785,586 819,051 843,199
Storm Water 427,291 409,458 407,640 412,105
Operating Grants and Contributions 6,137,401 7,619,601 6,242,687 5,802,788
Capital Grants and Contributions
Total Business-Type Activities Program Revenue 26,635,731 27,970,112 27,267,411 26,627,433
Total Primary Government Program Revenues $53,648,875 $61,252,879 $57,729,332 $63,479,582
Net (Expense)/Revenue
Governmental Activities ($77,989,529) ($56,924,367) ($60,982,375) ($54,703,582)
Business-Type Activities 3,316,650 6,646,282 1,560,202 6,169,619
Total Primary Government Net Expense ($74,672,879) ($50,278,085) ($59,422,173) ($48,533,963)
148 411
2017 2018 2019 2020 2021 2022
$10,253,403 $12,506,188 $12,139,671 $15,378,452 $19,611,586 $20,793,108
25,750,126 30,352,387 31,986,738 34,442,874 34,492,838 28,530,628
25,838,242 30,732,288 32,994,122 36,095,698 33,376,962 35,635,007
12,396,998 18,379,278 20,425,958 17,737,243 7,567,745 7,544,142
15,217,677 17,162,377 17,962,298 19,620,848 17,159,696 19,482,582
5,184,282 5,910,406 6,241,093 6,728,102 6,274,811 6,060,920
8,927,162 10,094,626 10,557,116 9,837,938 11,728,168 12,034,671
512,376 2,200,344 4,686,930
103,567,890 125,137,550 132,306,996 140,353,531 132,412,150 134,767,988
22,661,768 24,397,607 25,719,049 26,213,885 26,644,459 26,246,647
940,181 1,202,319 896,994 1,116,840 1,338,092 1,170,305
1,333,409 1,026,948 1,188,182 1,206,694 922,057 1,309,360
24,935,358 26,626,874 27,804,225 28,537,419 28,904,608 28,726,312
$128,503,248 $151,764,424 $160,111,221 $168,890,950 $161,316,758 $163,494,300
$2,225,049 $1,966,755 $7,930,983 $5,217,199 $6,968,307 $5,413,298
4,242,940 6,327,921 6,052,804 6,073,247 5,952,872 7,857,602
2,146,909 2,230,824 2,351,491 2,092,791 1,642,726 2,878,353
10,869,608 24,727,897 27,811,701 23,355,636 24,859,635 17,734,041
3,756,369 4,489,665 4,293,474 2,872,786 1,165,630 3,058,826
96,987 102,124 105,466 97,603 19,037 1,054,339
3,911,597 13,052,441 14,214,991 9,067,781 4,275,808 28,676,546
4,533,539 5,827,149 12,091,079 8,757,554 8,021,958 10,852,746
577,995 2,515,868 1,629,730 4,930,640 5,498,698 3,342,651
32,360,993 61,240,644 76,481,719 62,465,237 58,404,671 80,868,402
19,897,769 22,417,156 24,078,076 24,296,811 24,705,044 22,778,206
916,687 1,084,472 1,180,538 1,003,222 764,514 993,986
418,840 656,315 540,679 412,707 410,745 412,842
5,763,645 5,834,455 6,452,950 7,440,041 14,815,460 5,663,695
5,252,622
26,996,941 29,992,398 32,252,243 33,152,781 40,695,763 35,101,351
$59,357,934 $91,233,042 $108,733,962 $95,618,018 $99,100,434 $115,969,753
($71,206,897) ($63,896,906) ($55,825,277) ($77,888,294) ($74,007,479) ($53,899,586)
2,061,583 3,365,524 4,448,018 4,615,362 11,791,155 6,375,039
($69,145,314) ($60,531,382) ($51,377,259) ($73,272,932) ($62,216,324) ($47,524,547)
149 412
2013 2014 2015 2016
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property Taxes $26,420,861 $22,890,828 $24,650,648 $26,438,620
Sales Taxes 12,931,805 12,725,141 13,932,125 15,188,686
Transient Occupancy Tax 9,659,281 11,174,017 12,947,473 13,393,437
Franchise fees 3,982,092
Other Taxes 7,588,471 8,141,010 8,650,056 5,124,574
Motor Vehicle In-Lieu 33,767 40,074 26,995 26,708
Property taxes in lieu of vehicle license fees 4,955,873 5,319,154 5,551,651 5,770,060
Interest Earnings 809,721 1,108,177 629,036 1,354,266
Gain from sale of property
Other 1,965,744 2,012,444 4,577,239 2,334,407
Extraordinary Item
Transfers (906,857) (1,041,120) (1,429,308) (919,547)
Special items 11,873,226
Total Government Activities 75,331,892 62,369,725 69,535,915 72,693,303
Business-Type Activities:
Interest Earnings 95,177 153,353 126,874 289,201
Transfers 906,857 1,041,120 1,429,308 919,547
Total Business-Type Activities 1,002,034 1,194,473 1,556,182 1,208,748
Total Primary Government $76,333,926 $63,564,198 $71,092,097 $73,902,051
Change in Net Position
Governmental Activities ($2,657,637) $5,445,358 $8,553,540 $17,989,721
Business-Type Activities 4,318,684 7,840,755 3,116,384 7,378,367
Total Primary Government $1,661,047 $13,286,113 $11,669,924 $25,368,088
CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
Last Ten Fiscal Years
(continued)
(Accrual Basis of Accounting)
150 413
2017 2018 2019 2020 2021 2022
$29,023,618 $29,551,445 $33,446,750 $37,415,367 $41,561,039 $40,011,221
24,087,776 28,340,393 31,843,568 31,855,027 33,039,229 38,143,689
13,631,507 13,978,533 17,091,222 13,829,025 6,710,271 12,135,638
4,090,073 4,403,493 4,469,808 4,594,577 4,498,202 4,863,076
5,708,187 5,871,096 4,995,404 4,515,376 4,529,764 6,537,423
28,933 34,452 32,200 53,089 49,785 77,558
6,133,230 6,438,199 7,150,867 7,457,005 4,888,696 11,988,715
622,518 1,097,916 4,808,664 6,384,253 941,856 (6,724,092)
840,298 1,518,059
2,365,820 5,180,288 7,799,392 9,152,218 11,602,214 14,458,939
(1,105,038) (1,997,377) (2,101,222) (8,060,646) (4,984,746) (1,419,235)
45,205,422 (7,154,626) (531,591) 276,939 (1,378,533) (2,962,923)
129,792,046 85,743,812 109,845,360 107,472,230 101,457,777 118,628,068
27,710 37,072 633,704 824,916 52,623 (761,751)
1,105,038 1,997,377 2,101,222 8,060,646 4,984,746 1,419,235
1,132,748 2,034,449 2,734,926 8,885,562 5,037,369 657,484
$130,924,794 $87,778,261 $112,580,286 $116,357,792 $106,495,146 $119,285,552
$58,585,149 $21,846,906 $54,020,083 $29,583,936 $27,450,298 $64,728,482
3,194,331 5,399,973 7,182,944 13,500,924 16,828,524 7,032,523
$61,779,480 $27,246,879 $61,203,027 $43,084,860 $44,278,822 $71,761,005
151 414
CITY OF SOUTH SAN FRANCISCO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Fund
Nonspendable $805,677 $14,163 $1,134 $33,580 $474 $106 $372 $574 $574 $4,099
Restricted 20,582,335 19,201,948 18,372,633 18,372,633 14,763,033
Committed 1,406,430 3,879,451 2,536,790 3,654,283 11,780,724 16,725,897 22,619,868 17,723,338 17,723,338 16,083,977
Assigned 566,104 743,746 1,458,029 1,578,153 5,244,279 4,334,322 11,881,363 5,720,788 5,720,788 7,482,439
Unassigned 23,498,194 15,891,899 17,285,422 17,751,169 39,278,746 19,644,232 31,239,632 43,296,762 43,296,762 38,313,108
Total General Fund $26,276,405 $20,529,259 $21,281,375 $23,017,185 $56,304,223 $61,286,892 $84,943,183 $85,114,095 $85,114,095 $76,646,656 (a)
All Other Governmental Funds
Nonspendable $39,205
Restricted $30,539,396 $42,392,238 $43,437,361 $52,938,897 $55,195,500 $78,603,366 103,135,202 $140,143,149 $140,143,149 $243,582,187
Assigned 1,105,320 6,188,554 367,023 29,363,924 29,363,924 24,889,824
Unassigned (1,379,895) (521,604) (40,459)(88,331) (11,073) (2,971,345) 235,649 235,649 (1,437,892)
Total all other governmental funds $30,264,821 $41,870,634 $49,585,456 $53,305,920 $55,107,169 $78,592,293 $100,203,062 $169,742,722 $169,742,722 $267,034,119
#REF!#REF!56,541,226 62,399,893 70,866,831 70,866,831 76,323,105 185,146,245 343,680,775
(a) The change in total fund balance for the General Fund and other governmental funds is explained in Management's Discussion and Analysis.
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Thousands
Total Committed
Total Unassigned
Total Assigned
Total Restricted
Total Nonspendable
152 415
This Page Left Intentionally Blank
416
CITY OF SOUTH SAN FRANCISCO
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2013 2014 2015 2016
Revenues
Property Taxes $27,077,697 $23,010,136 $24,650,648 $26,438,620
Other Taxes 31,894,811 33,931,446 38,275,478 41,811,097
Intergovernmental revenues 13,054,594 10,757,440 10,453,071 12,360,354
Interest and Rents 3,238,089 3,632,693 3,531,966 4,207,453
Licenses and permits 3,054,451 4,366,271 4,795,158 6,896,897
Charges for services 9,275,724 16,864,409 13,387,712 15,386,358
Fines and forfeitures 1,753,682 1,528,319 1,221,413 791,756
Other 1,837,675 2,249,728 4,660,668 2,439,579
Total Revenues 91,186,723 96,340,442 100,976,114 110,332,114
Expenditures
Current:
General government 6,658,532 5,970,429 7,167,969 8,469,924
Fire Department 20,877,917 20,163,759 21,247,989 24,175,340
Police Department 22,542,135 23,309,568 23,611,743 25,458,986
Public works 9,186,493 16,791,894 15,923,071 14,846,346
Recreation and Community Services 10,927,433 11,552,502 11,826,407 13,234,028
Library 4,112,570 3,987,928 4,247,650 4,681,188
Economic and Community Development 20,512,545 5,972,966 5,917,508 7,907,655
Other 480,290 395,749
Capital outlay
Debt service:
Principal repayment 453,381 352,674 656,000
Interest and fiscal charges 52,139
Total Expenditures 94,869,764 88,202,427 90,775,301 99,825,216
Excess (deficiency) of revenues over
(under) expenditures (3,683,041)8,138,015 10,200,813 10,506,898
Other Financing Sources (Uses)
Transfers in 4,467,530 21,870,234 17,983,227 8,143,075
Transfers (out)(6,780,943) (24,149,582) (19,717,102)(13,193,699)
Lease revenue bonds issued
Premium on bonds
Sale of capital assets
Total other financing sources (uses)(2,313,413)(2,279,348)(1,733,875)(5,050,624)
Net Change in fund balances
before extraordinary and special items (5,996,454)5,858,667 8,466,938 5,456,274
Extraordinary item
Special item
Net change in fund balances ($5,996,454)$5,858,667 $8,466,938 $5,456,274
Debt service as a percentage of
noncapital expenditures 0.1%0.6%0.4%0.7%
For The Fiscal Year Ended June 30,
154 417
2017 2018 2019 2020 2021 2022
$35,156,848 $35,989,644 $40,597,617 $44,872,372 $46,449,735 $51,999,936
49,608,385 54,597,272 60,721,378 57,214,783 51,008,432 64,411,396
4,019,771 8,433,240 13,179,593 18,317,060 17,867,273 24,822,304
3,100,692 3,524,727 7,231,303 8,864,998 3,620,391 (2,537,324)
7,823,403 14,674,809 15,381,416 15,900,500 15,589,002 14,062,474
14,485,367 31,961,419 41,055,659 27,442,005 23,191,413 45,787,046
899,118 423,604 926,729 814,354 535,750 700,961
2,906,625 6,454,460 7,994,701 3,067,691 7,893,148 2,524,116
118,000,209 156,059,175 187,088,396 176,493,763 166,155,144 201,770,909
9,399,930 10,403,449 10,166,977 12,453,262 12,112,319 15,422,722
25,632,366 26,059,072 27,576,879 28,161,459 31,817,325 32,597,540
25,998,097 26,970,854 28,533,292 37,468,430 70,954,323 39,678,917
12,143,965 23,859,399 38,459,963 40,070,330 51,501,254 87,823,372
14,897,157 15,468,370 16,530,603 17,130,302 15,795,645 20,295,842
5,157,355 5,379,836 5,628,693 5,940,870 5,903,883 6,495,279
8,943,111 9,338,793 9,085,390 8,780,903 11,227,503 12,709,167
274,183 256,298 333,024 723,901 3,490,091 5,610,278
5,520,422
23,000 2,382,000 3,464,000 1,210,000 975,000 4,635,000
739,146 2,307,460 5,525,760
102,469,164 120,118,071 139,778,821 152,678,603 206,084,803 236,314,299
15,531,045 35,941,104 47,309,575 23,815,160 (39,929,659)(34,543,390)
14,327,130 26,486,651 22,230,499 38,117,966 37,970,252 36,220,467
(16,368,499)(30,795,941)(24,581,721)(46,647,023)(43,202,081)(38,772,007)
43,905,000 86,410,000 65,420,000
10,242,530 18,116,565 6,686,317
1,016,276 3,990,605 840,298 (2,718,691)1,507,641
(1,025,093)(318,685)(1,510,924)45,618,473 96,576,045 71,062,418
14,505,952 35,622,419 45,798,651 69,433,633 56,646,386 36,519,028
20,582,335 (7,154,626)(531,591)276,939 (1,378,533)(2,962,923)
$35,088,287 $28,467,793 $45,267,060 $69,710,572 $55,267,853 $33,556,105
0.0%2.2%3.0%1.7%2.9%7.0%
For The Fiscal Year Ended June 30,
155 418
Real Property Net Taxable value Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct
Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b)
2013 5,606,400,603$ 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%
2017 7,087,550,257$ 2,160,377,671$ 5,414,028,340$ 412,344,220$ 15,074,300,488$ 1,381,715,511$ 16,456,015,999$ 16,456,015,999$ 0.13632%
2018 7,458,269,085$ 2,171,084,856$ 5,838,028,479$ 383,589,586$ 15,850,972,006$ 1,423,348,022$ 17,274,320,028$ 17,274,320,028$ 0.13631%
2019 7,882,766,880$ 2,511,501,574$ 6,673,522,321$ 353,621,189$ 17,421,411,964$ 1,765,066,449$ 19,186,478,413$ 19,186,478,413$ 0.13640%
2020 8,459,303,983$ 2,717,851,133$ 7,535,473,093$ 491,981,925$ 19,204,610,134$ 1,727,590,717$ 20,932,200,851$ 20,932,200,851$ 0.13638%
2021 9,020,710,463$ 2,872,601,136$ 8,744,250,213$ 507,383,957$ 21,144,945,769$ 2,056,800,753$ 23,201,746,522$ 23,201,746,522$ 0.13622%
2022 9,440,006,474$ 4,059,376,407$ 8,650,209,742$ 508,430,937$ 22,658,023,560$ 1,993,694,829$ 24,651,718,389$ 24,651,718,389$ 0.13587%
Source: HdL Coren & Cone, San Mateo County Assessor 2012/13-2021/22 Tax Property Values.
(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
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Millions
Series1 Series2
156 419
Fiscal Basic School Total Direct/Overlapping
Year Levy Districts Tax Rates
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)
2017 1.000 0.1749
1.1749 (1,23)
2018 1.000 0.1642
1.1642 (1,24)
2019 1.000 0.1548
1.1548 (1,25)
2020 1.000 0.1648
1.1648 (1,26)
2021 1.000 0.1893
1.1893 (1,27)
2022 1.000 0.1542
1.1542 (1,28)
Notes:
(28) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0579, which includes SSFUSD & San Mateo Jr College
bond. 4 has a rate of 1.1190 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SMCCCD 2021
and SM Jr College bonds. 1 has a rate of 1.1103, which includes San Bruno Pk Elem bond, SM Union High, SM High,
SMCCCD 2021 and San Mateo Jr. Coll bonds.
(27) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0563, which includes SSFUSD & San Mateo Jr College
bond. 4 has a rate of 1.1543 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College
bonds. 1 has a rate of 1.1112, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond
and San Mateo Jr. Coll bonds.
(26) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0647, which includes SSFUSD & San Mateo Jr College
bond. 4 has a rate of 1.1267 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College
bonds. 1 has a rate of 1.1148, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond
and San Mateo Jr. Coll bonds.
CITY OF SOUTH SAN FRANCISCO
DIRECT AND OVERLAPPING
PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(1) Like other cities, South San Francisco includes several property tax rate areas with different rates.
(23) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0714 percent, which includes SSFUSD bonds & San Mateo Jr
College bond. 4 has a rate of 1.1282 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr
College bonds. 1 has a rate of 1.0910 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College
bond and San Mateo Comm Coll bond.
(24) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0601 percent, which includes SSFUSD bonds & San Mateo Jr
College bond. 4 has a rate of 1.1276 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr
College bonds. 1 has a rate of 1.0900 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College
bond and San Mateo Comm Coll bond.
(25) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0597 percent, which includes SSFUSD & San Mateo Jr
College bond. 4 has a rate of 1.1126 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD,
SM Jr College bonds. 1 has a rate of 1.0801 percent, which includes San Bruno Pk Elem bond, SM Union High, SM
High, SM Jr College bond and San Mateo Jr. Coll bonds.
(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, 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.
157 420
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421
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.*$3,007,406,548 1 12.20% $1,886,267,716 1 13.48%
HCP Oyster Point III LLC 842,373,175 2 3.42%--
ARE San Francisco LLC*802,990,156 3 3.26% 333,776,264 4 2.39%
Slough SSF LLC*692,494,640 4 2.81% 477,096,721 3 3.41%
GNS North Tower LP*467,753,941 5 1.90%--
GNS South Tower LP*427,069,629 6 1.73%--
United Airlines Inc 346,047,018 7 1.40% 206,348,820 6 1.47%
Britannia Pointe Grand LP 325,871,517 8 1.32% 280,470,089 5 2.00%
ARE East Grand Ave Owner LLC 242,919,318 9 0.99%--
BMR 1000 Gateway LP*232,173,757 10 0.94%--
Slough BTC LLC -- ---- 560,040,064 2 4.00%
BMR 180 Oyster Point LLC*-- ---- 135,762,000 7 0.97%
Gateway Center LLC -- ---- 135,430,223 8 0.97%
Britannia Biotech Gateway LP -- ---- 132,496,505 9 0.95%
Myers Peninsula Venture LLC*-- ---- 122,122,090 10 0.87%
Subtotal $7,387,099,699 29.97% $4,269,810,492 30.51%
Total Net Assessed Valuation:
Fiscal Year 2021-22 $24,651,718,389
Fiscal Year 2012-13 $13,992,796,951
* Pending Appeals on Parcels
HdL Coren & Cone, 2012/13 & 2021/22 Top Ten Property Taxpayers (Net Values).
San Mateo County Assessor 2012/13 & 2021/22 Combined Tax Rolls and the SBE Non Unitary Tax Roll
Source:
2021-22 2012-13
CITY OF SOUTH SAN FRANCISCO
Principal Property Tax Payers
Current Year and Nine Years Ago
159 422
Fiscal Percent of
Year Allocations (5) Collections Delinquencies Delinquent taxes
2013 13,740,246$ (4)(4)0.0%
2014 14,928,197 (4)(4)0.0%
2015 15,184,788 (4)(4)0.0%
2016 15,994,773 (4)(4)0.0%
2017 17,065,875 (4)(4)0.0%
2018 17,894,855 (4)(4)0.0%
2019 19,365,814 (4)(4)0.0%
2020 20,651,650 (4)(4)0.0%
2021 22,660,544 (4)(4)0.0%
2022 23,680,782 (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
$18
$19
$20
$21
$22
$23
$24
$25
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Millions
160 423
CITY OF SOUTH SAN FRANCISCO
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Loans from Lease
Fiscal Successor Revenue Capital
Year Agency Bonds Lease Total
2013 13,343,039$ 3,084,553$ 16,427,592$
2014 11,722,826 3,316,836 15,039,662
2015 11,370,152 2,786,573 14,156,725
2016 10,714,152 2,238,998 12,953,150
2017 10,691,152 1,673,522 12,364,674
2018 8,309,152 1,135,102 9,444,254
2019 4,845,152 753,619 5,598,771
2020 3,635,152 43,905,000 489,781 48,029,933
2021 3,595,152 156,980,389 285,529 160,861,070
2022 2,150,152 224,792,690 144,637 227,087,479
Business-Type Activities
Sewer State Water Total Percentage
Fiscal Revenue Resources Primary of Personal Per
Year Bonds Loans Total Government Income (a) Capita (a)
2013 4,640,000$ 52,118,587$ 56,758,587$ 73,186,179$ 3.65% 1,113.78
2014 4,385,000 47,591,019 51,976,019 67,015,681 3.30% 1,019.27
2015 4,120,000 43,543,614 47,663,614 61,820,339 2.92% 957.19
2016 3,850,000 39,392,832 43,242,832 56,195,982 2.59% 858.60
2017 3,570,000 35,136,032 38,706,032 51,070,706 2.22% 761.32
2018 3,275,000 30,770,503 34,045,503 43,489,757 1.80% 648.35
2019 2,970,000 35,148,205 38,118,205 43,716,976 1.63% 644.04
2020 2,655,000 50,150,607 52,805,607 100,835,540 3.48% 1,501.98
2021 2,325,000 60,480,459 62,805,459 223,666,529 7.10% 3,468.13
2022 1,980,000 60,799,450 62,779,450 289,866,929 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.
$-
$50
$100
$150
$200
$250
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022MillionsTotal Governmental Total Business
161 424
CITY OF SOUTH SAN FRANCISCO
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2022
2021-22 Assessed Valuation:$24,651,718,389
Redevelopment Incremental Valuation:-
Adjusted Assessed Valuation:$24,651,718,389
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2022 % Applicable (1) Debt 6/30/22
San Mateo Community College District $733,897,184 9.255% $67,922,184
Jefferson Union High School District 250,808,014 4.467 11,203,594
South San Francisco Unified School District 164,131,912 90.986 149,337,061
Brisbane School District 24,851,439 24.834 6,171,606
City of South San Francisco Community Facilities District No. 2021-1 19,685,000 100.000 19,685,000
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $254,319,445
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Mateo County General Fund Obligations $612,605,687 9.255% $56,696,656
San Mateo County Board of Education Certificates of Participation 6,490,000 9.255 600,650
San Mateo County Flood Control and Sea LRR District General Fund Obligations 14,675,000 61.572 9,035,691
South San Francisco Unified School District General Fund Obligations 2,980,000 90.986 2,711,383
Jefferson Union High School District Certificates of Participation 47,490,000 4.467 $2,121,378
City of South San Francisco Lease Revenue Bonds 224,792,690 100.000 224,792,690
City of South San Francisco Loans Payable 2,150,152 100.000 $2,150,152
City of South San Francisco Capital Leases 144,637 100.000 144,637
San Mateo County Mosquito and Vector Control District General Fund Obligations 3,825,000 9.255 $354,004
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT:$298,607,241
TOTAL DIRECT DEBT 227,087,479
Total Overlapping Debt $325,839,207
COMBINED TOTAL DEBT $552,926,686 (2)
(1) Percentage of overlapping debt applicable to the city is estimated uisng taxable assessed property value. Applicable percentages were estimated
by determining the portion of the overlapping district's asseessed value that is within the boundaries of the city divided by the destrict's total taxable ass
Ratios to Adjusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.03%
Total Direct Debt 0.92%
Combined Total Debt 2.24%
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 and non-bonded capital lease obligations.
162 425
ASSESSED VALUATION:$24,651,718,389
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)$924,439,440
LESS AMOUNT OF DEBT SUBJECT TO LIMIT:0
LEGAL BONDED DEBT MARGIN $924,439,440
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2013 524,729,886$ 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%
2017 617,102,145 0 617,102,145 0.00%
2018 647,787,001 0 647,787,001 0.00%
2019 719,492,940 0 719,492,940 0.00%
2020 784,957,532 0 784,957,532 0.00%
2021 870,065,495 0 870,065,495 0.00%
2022 924,439,440 0 924,439,440 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, 2022
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.
163 426
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
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
2017 25,684,966 17,357,273 8,327,693 280,000 169,976 449,976 18.51
2018 28,287,485 19,073,940 9,213,545 295,000 158,616 453,616 20.31
2019 30,393,993 20,398,157 9,995,836 305,000 146,616 451,616 22.13
2020 31,807,110 21,064,165 10,742,945 315,000 134,019 449,019 23.93
2021 33,885,393 21,401,332 12,484,061 330,000 120,593 450,593 27.71
2022 27,789,553 20,992,476 6,797,077 345,000 106,331 451,331 15.06
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
$35
$40
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022MillionsRevenue (1)
Expenses (2)
164 427
Fiscal Year
2016 2017 2018 2019 2020 2021 2022
Revenues
Service Charges $19,515,093 $19,750,636 $22,188,154 $23,556,871 $24,150,139 $24,526,952 $22,567,226
Connection and Other Fees 104,283 147,134 229,002 521,205 146,672 178,092 210,980
Interest Income 238,389 23,552 31,061 488,437 623,256 41,888 (652,348)
Developer Fees
Other Cities' Participation (1)5,752,765 5,763,644 5,834,455 5,827,480 6,887,043 9,138,461 5,663,695
Total Revenues $25,610,530 $25,684,966 $28,282,672 $30,393,993 $31,807,110 $33,885,393 $27,789,553
Operating Expenses (2)$18,759,650 $13,514,718 $19,073,943 $20,398,147 $21,064,167 $21,401,330 $21,049,553
Wastewater System Net Revenues $6,850,880 $12,170,248 $9,208,729 $9,995,846 $10,742,943 $12,484,063 $6,740,000
Parity Debt Service (3)
State Water Resources Control Board Loans $5,449,692 $5,454,747 $5,469,175 $5,477,075 $5,485,587 $5,497,048 $5,510,447
CSCDA Series 2005D Revenue Bonds 178,036 167,284 155,706 143,608 130,815 117,175 102,716
Total Parity Debt $5,627,728 $5,622,031 $5,624,881 $5,620,683 $5,616,402 $5,614,223 $5,613,163
Total Parity Debt Service Coverage 1.22 2.16 1.64 1.78 1.91 2.22 1.20
10,012,867 10,012,867 10,012,867 10,012,867 10,012,867 10,012,867 10,012,867
(2) Excludes depreciation, capital expenditures and debt service.
(3) Includes Sewer Revenue Bonds and State Water Loan payments
(1) Primarily consists of payments from the City of San Bruno. The City of San Bruno is a co-owner of the Plant and pays the City in advance on a quarterly basis for the City of San Bruno's share of
operating costs. See "Wastewater System" herein.
(4) Reflects an adopted increase in rates for Fiscal Year 2004-05 of 25% per Resolution No. 68-2004, adopted by the City Council on July 14, 2004 and effective on and after July 1, 2004 and an adopted
increase in rates for Fiscal Year 2005-06 of 9% per Resolution No. 68-2005, adopted by the City Council on June 22, 2005 and effective on and after June 22, 2005.
CITY OF SOUTH SAN FRANCISCO
SEWER DEBT SERVICE COVERAGE
SEWER RENTAL ENTERPRISE FUND
LAST SEVEN FISCAL YEARS
165 428
CITY OF SOUTH SAN FRANCISCO
REDEVELOPMENT PLEDGED REVENUE COVERAGE
LAST EIGHT FISCAL YEARS
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements Fiscal Available Debt Service Requirements
Year Revenue Principal Interest Total Coverage Year Revenue Principal Interest Total Coverage
2015 1,605,000$ 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
2017 1,745,000 2,761,756 4,506,756 2017 255,000 34,375 289,375
2018 2018 275,000 21,125 296,125
2019 2019 285,000 7,125 292,125
2020 2020
2021 2021
2022 2022
Bond was paid off in fiscal year 2017
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
2015
2016
2017
2018
2019
2020
2021
2022
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements
Year Revenue Principal Interest Total Coverage
2015 1,605,000 2,904,331 4,509,331
2016 1,680,000 2,834,619 4,514,619
2017 1,745,000 2,761,756 4,506,756
2018 0 0 0
2019 0 0 0
2020 0 0 0
2021 0 0 0
2022 0 0 0
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
166 429
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 (4) % of County
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%
2016 65,451 2,167,750$ 33,120$ 3.2% 764,797 8.56%
2017 67,082 2,303,425$ 35,193$ 3.2% 771,410 8.70%
2018 67,078 2,421,033$ 36,092$ 2.3% 769,545 8.72%
2019 67,879 2,684,438$ 39,547$ 2.3% 766,573 8.85%
2020 67,135 2,895,980$ 43,136$ 8.9% 765,245 8.77%
2021 64,492 3,148,543$ 48,820$ 5.7% 737,888 8.74%
Notes:
** All data were updated to reflect the City of South San Francisco's current information available
through HDL, Coren & Cone
Data Sources:
(1) City Population: HDL/California State Dept of Finance.
(2) Personal and per capita income: HDL, Coren & Cone
(3) Unemployment Data: HDL/California Employment Development Department
(4) San Mateo County Population- https://www.census.gov/quickfacts/fact/table/sanmateocountycalifornia,CA/PST045219
CITY OF SOUTH SAN FRANCISCO
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
City Personal Income
(in Thousands)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
City Unemployment Rate
8.20%
8.30%
8.40%
8.50%
8.60%
8.70%
8.80%
8.90%
City Population % of County
$-
$10,000
$20,000
$30,000
$40,000
$50,000
City Per Capita Personal Income
167 430
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment
Genentech Inc.8,632 1 13.4% 7,777 1 11.9%
ABBVIE 1,000 2 1.6%
Costco Wholesale (4 stores)834 3 1.3% 508 3 0.8%
Life Technologies Corporation 622 4 1.0% 650 2 1.0%
Amgen Inc 600 5 0.9% 419 4 0.6%
Verily Life Sciences LLC 555 6 0.9%
Amazon.com Services 425 7 0.7%
ZS Associates, Inc 390 8 0.6%
MRL San Francisco, LLC 317 9 0.5%
Frank & Grossman Landscape Contractors 265 10 0.4%
Successfactors, Inc 400 5 0.6%
Guardsmark LLC 351 6 0.5%
American Etc Inc/ Royal Laundry 318 7 0.5%
The New French Bakery, Inc 300 8 0.5%
DBI Beverage 232 9 0.4%
Oroweat/ Entenmann's 230 10 0.4%
Subtotal 13,640 21.1% 11,185 17.2%
Total City Population 64,492 65,127
Data Sources:
(1) SSF Business License Database- Business licenses expiring 12/31/22.
(2) City of South San Francisco CAFR 2012-13
(3) Population: HDL/California State Dept of Finance 2021.
2012-132021-22
CITY OF SOUTH SAN FRANCISCO
Principal Employers
Current Year and Nine Years Ago
168 431
Function 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Government (1) 36.60 37.60 40.60 47.10 47.10 43.60 41.60 46.60 46.60 51.30
Fire Department (2)82.48 82.98 83.48 92.68 92.68 92.68 91.93 91.68 91.68 93.49
Police Department 115.65 119.75 118.87 120.87 120.87 120.87 122.87 121.87 120.92 122.09
Park, Rec. & Maintenance Services 111.66 117.21 121.31 134.16 137.19 144.29 144.79 151.75 143.84 150.44
Library 35.35 37.66 37.71 38.71 39.26 40.49 41.49 41.49 38.56 38.15
Economic and Comm. Development 23.45 24.40 26.15 27.15 29.40 30.40 30.40 31.40 29.00 31.40
Public Works (2) 45.02 47.21 47.68 49.00 49.00 49.00 53.00 52.00 47.00 52.85
Water Quality Control Plant 38.82 39.63 39.06 41.74 41.50 41.50 41.50 41.50 41.50 41.50
Total 489.03 506.44 514.86 551.41 557.00 562.83 567.58 578.29 559.10 581.22
Notes:
1. City Council, City Treasurer, City Clerk, City Manager, HR, IT and Finance are under General Government.
2. Oversight of the Code Enforcement has been moved from Fire to Public Works Department.
Source: City of South San Francisco's FY2013-2022 Adopted Operating budget.
CITY OF SOUTH SAN FRANCISCO
Full-Time Equivalent City Government
Employees by Function
Last Ten Fiscal Years (Adopted Operating Budget)
0.00
100.00
200.00
300.00
400.00
500.00
600.00
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Government (1)Fire Department (2)Police Department Park, Rec. & Maintenance Services
Library Economic and Comm. Development Public Works (2)Water Quality Control Plant
169 432
2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
Public safety:
Fire:
Inspections conducted 1,817 2,563 3,426 2,292 2,511 2,375 3,888 3,060
Police:
Police calls for service 31,532 32,477 33,313 34,811 38,299 38,541 40,503 60,333
Law violations:
Part I crimes 1,874 2,126 2,103 2,276 2,007 2,070 3,481 1,955
Physical arrests (adult and juvenile)1,933 2,071 1,870 1,891 1,943 1,871 1,635 2,025
Traffic violations 3,828 4,211 3,785 3,359 3,620 4,172 2,119 1,985
Parking violations 13,378 12,006 15,291 18,339 26,228 12,269 13,276 17,667
Public works
Street resurfacing (miles) (Eng Div) 0 2 8 3.3 7.0 7.9 19.57 9.60
Potholes repaired (square miles
prior)/(square feet)0.11 2 0 (2) 3221 410 190 165 264
Asphalt used for street repairs (tons) 250 151 94 148 13 46 69 68
Culture and recreation:
Recreation class participants (5) 26,879 23,399 23,939 25,688 23,394 17,333 (4) 5,282 8,631
Library:
Total items borrowed 643,630 565,806 558,106 544,059 582,497
(3) 450,637 (3) 245,869 456,652
Items in collection 130,106 (1) 208,400 209,895 219,114 228,224 247,393 260,205 229,891
Wastewater
Residential connections 16,470 16,491 16,488 12,556 12,559 12,549 12,571 12,672
Commercial connections 1,560 1,561 1,562 1,575 1,576 1,582 1,575 1,523
Other connections 128 131 140 140 140 140 140 140
Average daily sewage treatment
(millions of gallons)8.89 7.92 8.41 8.62 8.62 7.12 6.76 7.35
Note: N/A denotes information not available.
(1) New items added for Grand Library and electronic books are also included.
(2) Beginning 2018, pothole repairs will be measured by square feet instead of square miles.
(3) Fewer items borrowed in FY2020 and FY2021 due to COVID-19 closures.
(4) Summer camp and traditional sports programs included. Lower participant counts due to COVID-19 limitations and closures.
(5) Registration counts have excluded all withdrawals from the classes for the year while the numbers in 2015 did not.
CITY OF SOUTH SAN FRANCISCO
Operating Indicators by Function/Program
Last Eight Fiscal Years
170 433
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Program
Public safety:
Fire stations 5555555555
Police stations 1111111111
Police Fleet 51 50 53 53 52 59 63 60 63 60
Public works
Miles of streets 127 127 127 127 127 127 127 127 127 127
Street lights (3)4,505 4,505 4,505 4,505 4,505 4,531 4,531 4,531 4,581 4,581
Parking District lights (4)20 20 20 20 16 16 16 16 16 16
Traffic Signals 74 74 74 76 76 76 76 76 80 80
Culture and recreation:
Community services:
City parks 28 28 28 28 28 28 28 28 28 28
City parks acreage 190 190 190 190 190 190 210 210 210 210
Playgrounds (5)24 24 24 24 24 24 24 34 34 34
City trails 6666666666
Community gardens 1111111111
Community centers 4444444444
Senior centers (2)1111111111
Skate Park 1111111111
Dog park 1111111111
Swimming pools 1111111111
Tennis courts 7777777777
Basketball Courts 12 12 12 12 12 12 12 12 12 12
Baseball/softball diamonds11111111111111111111
Soccer/football fields 5555555555
Library:
City Libraries (1)2222222222
Wastewater
Miles of sanitary sewers 164 164 164 164 164 164 164 164 164 164
Miles of storm sewers 125 125 125 125 125 125 125 125 125 125
Number of treatment plants 1111111111
Source: ssf.net/depts/rcs; Director of Rec & Comm Services; Superintendent of parks & Maintenance
(1) Community Learning Center not included on count as it is only a homework center not a library.
(2) The only senior center is Magnolia Center but programming still continues at El Camino.
(3) Year 2013- Includes all lights in SSF billed as LS-2 from PG&E.
(4) Year 2017- Lot 6 sold for Rotary Plaza development.
(5) Year 2020 -Playgrounds in the Common Greens areas are now included.
CITY OF SOUTH SAN FRANCISCO
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
171 434
2019 2020 2021 2022
Transient Occupancy Tax Detail
TOT Collected 15,535,213$ 12,591,459$ 6,215,172$ 11,268,807$
1% Measure I Special Tax 1,556,009 1,114,911 495,099 866,831
Total TOT Collection 17,091,222$ 13,706,371$ 6,710,270$ 12,135,638$
1% Measure I Special Tax Use
Police 311,202$ 222,982$ 99,020$ 173,366$
Fire 311,202 222,982 99,020 173,366
Library 311,202 222,982 99,020 173,366
Parks 311,202 222,982 99,020 173,366
Recreation 311,202 222,982 99,020 173,366
Total 1% Measure I Special Tax 1,556,009$ 1,114,911$ 495,099$ 866,831$
* Note: The current TOT consists of three components - a 9% general excise tax (Measure FF) that generates General Fund revenues; a 1% special tax (Measure I-
effective January 1, 2005) was earmarked for use to supplement funding parks, recreation, library, and public safety services (SSFMC 4.20.033) and a $2.50 tax
devoted to the acquistion, renovation, maintenance and operation of the South San Francisco Conference Center. The City Council last increased the total TOT
rate from 9% to 10% in 2009 with the incremental 1% increase being a general tax. City's TOT rate from 10% to 12% effective january 1, 2019. A subsequent 2%
increase over the next two years would revise the TOT rate to 13% (effective January 1, 2020) and 14% (effective January 1, 2021).
CITY OF SOUTH SAN FRANCISCO
Collection and Use of 1% Special Transient Occupancy Tax (TOT) Approved by Voters as Measure I *
Miscellaneous Information
Last Four Fiscal Years
172 435
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT
ARTICLE III FUND
BASIC FINANCIAL STATEMENTS
FOR THE YEARS ENDED
JUNE 30, 2022 AND 2021
Attachment 2
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437
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
Basic Financial Statements
For the Years Ended June 30, 2022 and 2021
Table of Contents
Page
Independent Auditor's Report ........................................................................................................................ 1
Fund Financial Statements:
Comparative Balance Sheets ................................................................................................................... 3
Comparative Statements of Revenues and Expenditures ........................................................................ 4
Notes to the Financial Statements ............................................................................................................ 5
Independent Auditor’s Report on Internal Control Over Financial Reporting,
on Compliance with the Transportation Development Act
and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards .............................................................. 7
Status of Prior Year Findings and Responses ............................................................................................... 9
438
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439
INDEPENDENT AUDITOR'S REPORT
Honorable Members of the City Council of the
City of South San Francisco
South San Francisco, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the City of South San Francisco Transportation
Development Act Article III Fund (TDA Fund), which are included in the Capital Projects Fund of the City
of South San Francisco (City), California, as of and for the years ended June 30, 2022 and 2021, and related
notes to the 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 TDA Fund as of June 30, 2022 and 2021, and the respective changes in
financial position for the years then ended in accordance with accounting principles generally accepted in
the United States of America.
Basis for Opinions
We conducted our audits 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 Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We
are required to be independent of the City and to meet our other ethical responsibilities, in accordance with
the relevant ethical requirement 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.
Emphasis of Matter
As discussed in Note 1, the financial statements present only the TDA Fund and do not purport to, and do
not present fairly the financial positions of the City as of June 30, 2022 and 2021 or the changes in its
financial position for the years then ended in accordance with accounting principles generally accepted in
the United States of America. Our opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of the financial statements that are free from material misstatement, whether due to fraud or error.
1 440
Auditor’s 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 auditor’s report that includes our
opinion. 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, individually or in the aggregate, they could reasonably
be expected to 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 TDA Fund’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.
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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 16,
2022, on our consideration of the TDA Fund’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 TDA Fund’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
the TDA Fund’s internal control over financial reporting and compliance.
Pleasant Hill, California
December 16, 2022
2 441
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
COMPARATIVE BALANCE SHEETS
FOR THE YEARS ENDED JUNE 30, 2022 AND 2021
2022 2021
ASSETS
Due from Metropolitan Transportation Commission 400,000$ -$
Total Assets $400,000 -$
LIABILITIES
Due to the City 400,000$ -$
Total Liabilities 400,000 -
FUND BALANCE - -
Total Fund Balance - -
Total Liabilities, Deferred Inflows of Resources
and Fund Balance -$ -$
See accompanying notes to financial statements
3 442
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
COMPARATIVE STATEMENTS OF REVENUES AND EXPENDITURES
FOR THE YEARS ENDED JUNE 30, 2022 AND 2021
2022 2021
REVENUES
TDA Article 3.0 (Note 2) 400,000$ 325,847$
Total Revenues 400,000 325,847
EXPENDITURES
Linden Avenue Complete Streets Safety Project - 325,847
East Grand Avenue - CalTrain Bicycle and Pedestrian Access 400,000 -
Total Expenditures 400,000 325,847
Net change in fund balance - -
Fund balance at beginning of year, as restated (Note 2)- -
Fund balance at end of year -$ -$
See accompanying notes to financial statements
4 443
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
Notes to the Financial Statements
For the Years Ended June 30, 2022 and 2021
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of South San Francisco, California (City), Transportation Development Act Article III Fund
(TDA Fund) includes the financial activities associated with the State of California Transportation
Development Act. The State of California created a local transportation fund for each County funded
by a portion of the State sales tax.
The TDA Fund is distributed through the Metropolitan Transportation Commission (MTC) which is
the agency responsible for allocation of funds to eligible claimants within the greater San Francisco
Bay Area.
The TDA Fund is included in a Capital Projects Fund of the Annual Comprehensive Financial Report
of the City. The financial statements are intended to present the financial position and results of
operation for the TDA Fund, and not those of the City as a whole.
B. Basis of Accounting
Basis of accounting refers to when revenues and expenditures are recognized. The TDA Fund is
accounted for in a governmental fund type and the modified accrual basis of accounting is used.
Under the modified accrual basis, revenues are recognized when they become measurable and
available as net current assets. TDA Article 3.0 revenues are recognized when qualifying project
expenditures are incurred. Expenditures are generally recognized when they are incurred.
C. Deferred Inflows of Resources
In addition to liabilities, the balance sheet reports a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources, represents an
acquisition of fund balance that applies to a future period(s) and so will not be recognized as an
inflow of resources (revenue) until that time. The City has only one item, which arises only under
a modified accrual basis of accounting, that qualifies for reporting in this category. Accordingly,
the item, unavailable revenue, is reported only in the balance sheet. The TDA Fund reports
unavailable revenues from grants receivable. These amounts are deferred and recognized as an
inflow of resources in the period that the amounts become available.
5 444
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
Notes to the Financial Statements
For the Years Ended June 30, 2022 and 2021
NOTE 2 – TDA ARTICLE 3.0 REVENUE
For the years ended June 30, 2022 and 2021 the City received allocation instructions from the
Metropolitan Transportation Commission for the following projects:
Instruction
Number Project Name Grant Award
Expended in
June 30, 2022
Revenue in
June 30, 2022
Expenditures
to date
through
June 30, 2022
Revenue to
date through
June 30, 2022
18001094 and
20001115 (A)
Linden Avenue Complete Streets
Safety Project 363,300$ -$ -$ 363,300$ 363,300$
20001106 East Grand Avenue - CalTrain Bicycle
and Pedestrian Access 400,000 400,000 400,000 400,000 400,000
763,300$ 400,000$ 400,000$ 763,300$ 763,300$
(A) Instruction number 18001094 expired on June 30, 2020, but the remaining balance of $325,847 was reallocated
under Instruction Number 20001115 in July 2020, with a new expiration date of June 30, 2022.
During fiscal year 2021, the City determined that prior year expenditures for the Linden Avenue
Complete Streets Safety Project (Allocation Instruction #18001094/20001115) had been overstated
in the amount of $40,789 during the year ended June 30, 2020 and in the amount of $89,253 prior to
July 1, 2019. As a result, beginning fund balance as of July 1, 2020 has been restated and increased
in the amount of $130,042 and due from Metropolitan Transportation Commission and Due to the
City have been reduced and restated in the same amount.
NOTE 3 – COMMITMENTS AND CONTINGENCIES
The City participates in several grant programs. These programs have been audited by the City’s
independent accountants in accordance with the provisions of applicable State requirements. No cost
disallowances were proposed as a result of these audits; however, these programs are still subject to
further examination by the grantors and the amount, if any, of expenditures which may be disallowed
by the granting agencies cannot be determined at this time. The City expects such amounts to be
immaterial.
The City is subject to litigation arising in the normal course of business. In the opinion of the City
Attorney, there is no pending litigation which is likely to have a material adverse effect on the financial
position of the City.
6 445
INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING,
ON COMPLIANCE WITH THE TRANSPORTATION DEVELOPMENT ACT
AND OTHER MATTERS BASED ON
AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Honorable Members of the City Council of
City of South San Francisco
South San Francisco, 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 Transportation Development Act
Article III Fund (the TDA Fund) of the City of South San Francisco (City), California, as of and for the year
ended June 30, 2022, and the related notes to the financial statements, and have issued our report thereon
dated December 16, 2022
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the TDA Fund’s internal
control over financial reporting (internal control) as a basis for designing the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but
not for the purpose of expressing an opinion on the effectiveness of the TDA Fund’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the TDA Fund’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 TDA Fund’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. Given these limitations, during our audit we did not identify any deficiencies in internal control
that we consider to be material weaknesses. However, material weaknesses may exist that have not been
identified.
7 446
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we performed tests of its compliance with certain TDA Fund’s provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. Our procedures included the applicable audit
procedures contained in §6666 of Title 21 of California Code of Regulations and tests of compliance with
the applicable provisions of the Transportation Development Act and the Allocation Instructions and
Resolutions of the Metropolitan Transportation Commission. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the TDA Fund’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 TDA Fund’s internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.
This report is intended solely for the information and use of the Metropolitan Transportation Commission,
management, City Council, others within the City, and federal awarding agencies and pass-through entities
and is not intended to be and should not be used by anyone other than these specified parties; however, this
restriction is not intended to limit the distribution of this report, which is a matter of public record.
Pleasant Hill, California
December 16, 2022
8 447
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
STATUS OF PRIOR YEAR FINDINGS AND RESPONSES
TDA2021-01 – Accurate TDA Program Reimbursement Requests and Reporting
Criteria: Transportation Development Act (TDA) program expenditures should be reported in the proper
period and requests for reimbursement should include only those costs that are eligible to be charged to the
TDA program.
Condition: The original reports of TDA project expenditures provided for audit totaled to $757,519 across
three projects that incurred costs during fiscal year 2021.
As we began testing the amounts reported, we noted the following:
•The December 2020 reimbursement request of $325,847 for the Linden Avenue Complete Streets
Safety Project (Allocation Instruction #20001115) included three vendor payments that had
occurred in fiscal year 2021. However, expenditures had been included in the prior year TDA
reports totaling $130,042, which were comprised of $40,789 in the fiscal year 2020 report and
$89,253 of expenditures incurred prior to July 1, 2019.
•The City reported expenditures of $5,506 for the Regional Bike Network Connectivity Project
North (Allocation Instruction #18001084), but that project had been completed and fully
reimbursed in the prior fiscal year.
•The City reported expenditures of $5,337 for the SSF Pedestrian and Bicycle Master Planning
Project (Allocation Instruction #18001085), but that project had been completed and fully
reimbursed in the prior fiscal year.
After we discussed the above issues with City staff, City staff determined that the project expenditures for the
Linden Avenue Complete Streets Safety Project (Allocation Instruction #20001115) had been overstated in
the prior year TDA reports, because those project costs were not applied to the TDA funding. And, the
other two projects listed above incurred project expenditures during fiscal year 2021, but they should not
have been included in the expenditures provided for the fiscal year 2021 TDA report.
Cause: We understand that City staff that are responsible for preparing the reimbursement requests do not
reconcile the project accounting information to the general ledger data for the projects or to the data previously
reported in the Transportation Development Act Article III Fund financial statements, which lead to inaccurate
reporting in the TDA financial statements.
Effect: When the worksheet provided for audit does not agree with the actual project costs incurred and
reimbursed, it leads to inaccurate reporting and the City is not in compliance with the requirements of the
TDA program.
Recommendation: The City must develop procedures to ensure that the TDA financial statements include
only eligible project costs that will be applied to the TDA funding and requested for reimbursement from
MTC. In addition, the TDA financial statements should be reviewed when reimbursement requests are filed
to determine whether eligible project costs incurred reconcile and agree to those previously reported in the
TDA financial statements.
9 448
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
STATUS OF PRIOR YEAR FINDINGS AND RESPONSES
TDA2021-01 – Accurate TDA Program Reimbursement Requests and Reporting (Continued)
Current Status:
Implemented – The City has taken to steps to improve internal controls related to TDA program
reimbursements, requiring program managers to provide data to Finance prior to requesting reimbursement
such that reconciliation to the general ledger can be performed and invoices checked to ensure no
consolidation of multiple projects on a single invoice. A requirement to request reimbursement on a more
regular basis has also been communicated to avoid time pressures when requesting reimbursement at year
end.
TDA2020-01 – Accurate TDA Program Reimbursement Requests and Reporting
Criteria: Transportation Development Act (TDA) program expenditures should be reported in the proper
period and requests for reimbursement should include only those costs that are eligible to be charged to the
TDA program.
Condition: The original worksheet of TDA project expenditures provided for audit totaled to $215,213 across
the three projects that incurred costs during fiscal year 2020.
As we began testing the worksheet, we noted the following:
•The City had received reimbursement of $100,000 for the SSF Pedestrian and Bicycle Master
Planning Project (Allocation Instruction #18001085) for expenditures incurred in fiscal year 2019,
but the worksheet included expenditures of only $90,198.
•The City had received reimbursement of $311,994 in August 2020 for the Regional Bike Network
Connectivity Project North (Allocation Instruction #18001084) for expenditures incurred in fiscal
years 2019 and 2020, but the worksheet included expenditures of only $200,199 for those fiscal
years.
•The July 2020 reimbursement request of $311,994 for the Regional Bike Network Connectivity
Project North (Allocation Instruction #18001084) included two duplicate vendor payments totaling
$5,141, included ineligible costs related to a vendor payment of $16,994 for a non-TDA funded
project, and included two vendor payments in the amounts of $62,991 and $91,458 that were gross
of the vendor retention that was not paid to the vendor until December 2020.
After we discussed the above issues with City staff, City staff determined that the project expenditures for the
SSF Pedestrian and Bicycle Master Planning Project (Allocation Instruction #18001085) had been
understated on the worksheet provided for audit by the $9,802. We also noted that the reimbursement
request filed with the Metropolitan Transportation Commission for the project in February 2020 included
eligible project expenditures totaling $105,699, but also included unrelated expenditures of $66,109.
10 449
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
STATUS OF PRIOR YEAR FINDINGS AND RESPONSES
TDA2020-01 – Accurate TDA Program Reimbursement Requests and Reporting (Continued)
For the Regional Bike Network Connectivity Project North (Allocation Instruction #18001084), the City
filed a revised reimbursement request with the Metropolitan Transportation Commission in January 2021
to replace the ineligible costs of $16,224 and the duplicate costs of $5,141 with eligible costs, which was
approved by the grantor. Although the City did not make the correction to the revised invoice to remove
the retention payments that had not been paid to the vendor as of the date of the original reimbursement
request filing in July 2020, we did note that the retention had been paid to the vendor in December 2020,
which was prior to the revised reimbursement request filing date in January 2021.
The final, revised worksheet included project expenditures to be reported of $339,430 for the three
Allocation Instructions that incurred costs in fiscal year 2020 and the identification of expenditures in fiscal
year 2019 that were not deemed to be eligible project costs until fiscal year 2020.
Cause: We understand that City staff that are responsible for preparing the reimbursement requests do not
reconcile the project accounting information to the general ledger data for the projects or to the data previously
reported in the Transportation Development Act Article III Fund financial statements, which leads to
inaccurate reporting in the reimbursement requests and the TDA program worksheet.
Effect: When the City requests reimbursement for ineligible costs, the City is not in compliance with the
requirements of the TDA program. And, when the worksheet provided for audit does not agree with the actual
project costs incurred and reimbursed, it could lead to inaccurate reporting.
Recommendation: The City must develop procedures to ensure that reimbursement requests for the TDA
program include only eligible costs incurred and that the amounts reported in the Transportation Development
Act Article III Fund financial statements accurately include the eligible costs incurred for each project in each
fiscal year.
In addition, the City should confirm with the Metropolitan Transportation Commission that the City does not
need to return interest earned on the reimbursement of the retention payable total from the date the
reimbursement was received in August 2020 to the date the retention was paid to the vendor in December
2020.
Current Status: The City agrees with the audit finding that internal controls need to be strengthened to prevent
inaccuracies related to grant reporting and reimbursement requests. Upon realizing the errors related to the
TDA program expenditures, the City has actively changed procedures to broaden and strengthen the oversight
of grant-funded projects and is in the process of developing a new model that includes training and coaching
for all new program managers on the grants process as a preventive measure. In addition, all reimbursement
requests will require additional review by divisional management staff and require the reconciling of revenues
and expenditures to the general ledger as outlined in the City’s Grant Management Policy, which was adopted
in April 2020.
To enhance future oversight of grant-related projects, vendors for the City will no longer be allowed to submit
a consolidated invoice for work related to multiple projects. The administrative change of requiring itemized
invoices for specific projects will mitigate the chances of the inadvertent reimbursement requests for unrelated
projects.
11 450
CITY OF SOUTH SAN FRANCISCO
TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND
STATUS OF PRIOR YEAR FINDINGS AND RESPONSES
TDA2020-01 – Accurate TDA Program Reimbursement Requests and Reporting (Continued)
Related to the accurate tracking of project expenditures in each fiscal year, program managers will be required
to reconcile all project expenditures quarterly. Any reconciliations that do not occur within the quarter the
expense was incurred will require appropriate documentation as to why the request did not occur within the
quarterly timeframe.
Lastly, City did not receive a request from MTC to return any interest earned. If required to return any interest
earnings, the City will reimburse MTC from its General Fund.
See also finding TDA2021-01.
12 451
CITY OF SOUTH SAN FRANCISCO
MEASURE A FUNDS
Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure A Funds for Local Transportation Purposes
For the Year Ended June 30, 2022
Attachment 3
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CITY OF SOUTH SAN FRANCISCO
MEASURE A FUNDS
For the Year Ended June 30, 2022
Table of Contents
Page
Independent Accountant’s Report on Management’s Assertion .................................................... 1
Financial Statements:
Balance Sheet .................................................................................................................................. 2
Schedule of Revenues, Expenditures and Changes in Fund Balance ............................................. 3
Notes to Financial Statements ......................................................................................................... 5
Management’s Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure A Funds for Local Transportation Purposes ................................................................. 7
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455
INDEPENDENT ACCOUNTANT'S REPORT
ON MANAGEMENT’S ASSERTION
Honorable Mayor and Members of City Council of the
City of South San Francisco, California
We have examined management of the City of South San Francisco’s assertion, included in accompanying
Management’s Report on Compliance with the Agreement for Distribution of San Mateo County Measure A
Funds for Local Transportation Purposes (the Agreement) between the City of South San Francisco and the
San Mateo County Transportation Authority dated March 5, 2009, that the City complied with the requirements
of the Agreement during the year ended June 30, 2022. Management is responsible for that assertion. Our
responsibility is to express an opinion on management’s assertion about the City’s compliance based upon our
examination
Our examination was conducted in accordance with the attestation standards established by the American
Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to
obtain reasonable assurance about whether management’s assertion that the City complied with the
requirements of the Agreement is fairly stated, in all material respects. An examination involves performing
procedures to obtain evidence about management’s assertion. The nature, timing and extent of procedures
selected depend on our judgment, including an assessment of the risks of material misstatement of
management’s assertion, whether due to fraud or error. We believe that the evidence we obtained is sufficient
and appropriate to provide a reasonable basis for our opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance with relevant
ethical requirements relating to the engagement.
In our opinion, management’s assertion that the City complied with the requirements of the Agreement for the
year ended June 30, 2022 is fairly stated, in all material respects.
This report is intended solely for the information and use of management, the City Council and the San
Mateo County Transportation Authority and is not intended to be and should not be used by anyone other
than those specified parties; however, this restriction is not intended to limit the distribution of this report,
which is a matter of public record.
Pleasant Hill, California
December 16, 2022
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CITY OF SOUTH SAN FRANCISCO
MEASURE A FUNDS
BALANCE SHEET
JUNE 30, 2022
ASSETS:
Cash and investments $3,680,937
Accounts receivable 22,727
Accrued interest receivable 10,014
TOTAL ASSETS $3,713,678
FUND BALANCE:
Restricted for Measure A capital projects and maintenance $3,713,678
TOTAL FUND BALANCE $3,713,678
See accompanying notes to the financial statements.
2 457
CITY OF SOUTH SAN FRANCISCO
MEASURE A FUNDS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2022
REVENUES
Sales tax from the County of San Mateo $2,022,215
County grants 100,726
Reimbursement from South Linden Avenue Grade Separation Partner 2,362
Interest and investment income (114,917)
Total Revenues 2,010,386
TRANSFERS OUT
Capital Improvements Projects:
Street Rehabilitation Program FY 18-19 9,677
2020 Pavement Rehabilitation 39,015
Grand Blvd Project - Chestnut to Arroyo 21,584
Linden Avenue Complete Streets (Aspen-Miller) 264,159
West Orange and Hillside Pedestrian Crossing Improvements 53,912
Oyster Point Peninsula Flood Improvements 47,934
Commercial and Spruce Signalized Intersection 308,615
General Fund Projects:
South City Shuttle 76,411
Total Transfers Out 821,307
Net Change in Fund Balance 1,189,079
Fund Balance, July 1 2,524,599
Fund Balance, June 30 $3,713,678
See accompanying notes to the financial statements.
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459
CITY OF SOUTH SAN FRANCISCO
MEASURE A FUNDS
Notes to Financial Statements
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
At the General Election of June 7, 1988, the voters of City of San Mateo County approved
Measure A, which is an ordinance providing for the creation of the San Mateo County
Transportation Authority for the imposition of a one-half of one percent sales transaction and
use tax. Twenty percent of the aforementioned tax is to be allocated to the cities of San Mateo
County and to the County of San Mateo for the improvement of local transportation, including
streets and roads in accordance with Measure A requirements.
B. Basis of Accounting
The Schedule of Measure A Funds (Transportation Sales Tax), a special revenue fund of the
City of South San Francisco, California, have been prepared in conformity with accounting
principles generally accepted in the United States of America as applied to governmental units.
The Governmental Accounting Standards Board is the accepted standard-setting body for
establishing governmental accounting and financial reporting principles.
The Measure A Funds are accounted for using the modified accrual basis of accounting. Under
this basis, revenues are recognized when they become both measurable and available to finance
expenditures of the fiscal period. Expenditures are recognized when the liability is incurred.
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461
December 16, 2022
San Mateo County Transportation Authority
120 San Carlos Avenue
San Carlos, California 94070
Management’s Report on Compliance with the Agreement for Distribution of San Mateo County
Measure A Funds for Local Transportation Purposes
The City of South San Francisco is responsible for complying with the Agreement for Distribution of San
Mateo County Measure A Funds for Local Transportation Purposes (the Agreement) between the City and
the San Mateo County Transportation Authority entered into on March 5, 2009. The Agreement states that
in return for receiving an annual allocation of a specified portion of the retail transactions and use tax
approved by Measure A – San Mateo County Transportation Expenditure Plan (the Measure), the City
agrees that funds “shall not be used to replace funds previously provided by property tax or other local
revenues for public transportation purposes, and that City will limit the use of funds provided pursuant to
this Agreement to the improvement and maintenance of local transportation, including streets and road
improvements.”
With respect to compliance with the Agreement, management attests to the following for the year ended
June 30, 2022:
Management is responsible for establishing and maintaining an effective internal control
structure with respect to compliance with the Agreement;
Management is responsible for complying with the Agreement;
Management has evaluated the City’s compliance with the requirements of the Agreement;
All Transactions, as summarized in the preceding Balance Sheet and Schedule of Revenues,
Expenditures and Changes in Fund Balance for the Year Ended June 30, 2022, are in
compliance with the Agreement.
__________________________ ________________________
City Manager Finance Director
CITY COUNCIL 2022
FLOR NICOLAS, MAYOR (DIST. 3)
MARK NAGALES, VICE MAYOR (DIST. 2)
MARK ADDIEGO, MEMBER (DIST. 1)
JAMES COLEMAN, MEMBER (DIST. 4)
EDDIE FLORES, MEMBER (DIST. 5)
MIKE FUTRELL, CITY MANAGER
SHARON RANALS, INTERIM CITY MANAGER
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, Acting
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463
City of South San Francisco
Measure W Funds
Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure W Funds for
Local Transportation Purposes in Accordance
with the San Mateo County Congestion Relief Plan
For the Year Ended June 30, 2022
Attachment 4
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465
CITY OF SOUTH SAN FRANCISCO
MEASURE W FUNDS
For the Year Ended June 30, 2022
Table of Contents
Page
Independent Accountant’s Report on Management’s Assertion ..................................................... 1
Financial Statements:
Balance Sheet ................................................................................................................................... 2
Schedule of Revenues, Expenditures and Changes in Fund Balance .............................................. 3
Notes to Financial Statements .......................................................................................................... 5
Management’s Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure W Funds for Local Transportation Purposes in
Accordance with the San Mateo County Congestion Relief Plan ................................................. 7
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467
INDEPENDENT ACCOUNTANT'S REPORT
ON MANAGEMENT’S ASSERTION
Honorable Mayor and Members of City Council of the
City of South San Francisco, California
We have examined management of the City of South San Francisco’s assertion, included in accompanying
Management’s Report on Compliance with the Agreement for Distribution of San Mateo County Measure W
Funds for Local Transportation Purposes in Accordance with the San Mateo County Congestion Relief Plan
(the Agreement) between the City of South San Francisco and the San Mateo County Transportation
Authority dated October 1, 2019, that the City complied with the requirements of the Agreement during the
year ended June 30, 2022. Management is responsible for that assertion. Our responsibility is to express an
opinion on management’s assertion about the City’s compliance based upon our examination.
Our examination was conducted in accordance with the attestation standards established by the American
Institute of Certified Public Accountants. Those standards require that we plan and perform the examination
to obtain reasonable assurance about whether management’s assertion that the City complied with the
requirements of the Agreement is fairly stated, in all material respects. An examination involves performing
procedures to obtain evidence about management’s assertion. The nature, timing and extent of procedures
selected depend on our judgment, including an assessment of the risks of material misstatement of
management’s assertion, whether due to fraud or error. We believe that the evidence we obtained is
sufficient and appropriate to provide a reasonable basis for our opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance with relevant
ethical requirements relating to the engagement.
In our opinion, management’s assertion that the City complied with the requirements of the Agreement for
the year ended June 30, 2022 is fairly stated, in all material respects.
This report is intended solely for the information and use of management, the City Council and the San
Mateo County Transportation Authority and is not intended to be and should not be used by anyone other
than those specified parties; however, this restriction is not intended to limit the distribution of this report,
which is a matter of public record.
Pleasant Hill, California
December 16, 2022
1 468
CITY OF SOUTH SAN FRANCISCO
MEASURE W FUNDS
BALANCE SHEET
JUNE 30, 2022
ASSETS:
Cash and investments $1,278,810
Accounts receivable 83,097
Accrued interest receivable 2,770
TOTAL ASSETS $1,364,677
FUND BALANCE:
Restricted for Measure W capital projects and maintenance $1,364,677
TOTAL FUND BALANCE $1,364,677
See accompanying notes to the financial statements.
2 469
CITY OF SOUTH SAN FRANCISCO
MEASURE W FUNDS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2022
REVENUES
Sales tax from the County of San Mateo $825,500
Interest and investment income (31,622)
Total Revenues 793,878
TRANSFERS OUT
Capital Improvements Projects:
Street Rehabilitation Program 43,462
Total Transfers Out 43,462
Net Change in Fund Balance 750,416
Fund Balance, July 1 614,261
Fund Balance, June 30 $1,364,677
See accompanying notes to the financial statements.
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471
CITY OF SOUTH SAN FRANCISCO
MEASURE W FUNDS
Notes to Financial Statements
For the Year Ended June 30, 2022
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
At the General Election of November 6, 2018, the voters of City of San Mateo County approved
Measure W, which is an ordinance providing for the San Mateo County Transportation Authority to
impose a one-half of one percent sales transaction and use tax. The San Mateo County Congestion
Relief Plan includes an annual allocation of 12.5% of the total revenue generated by the
aforementioned tax for the Local Safety, Pothole and Congestion Relief Improvement Program
Category, of which 10% is to be allocated to the cities of San Mateo County and to the County of
San Mateo for transportation and public transit in accordance with the Congestion Relief Plan.
B. Basis of Accounting
The Schedule of Measure W Funds (Transportation Sales Tax), a special revenue fund of the City
of South San Francisco, California, have been prepared in conformity with accounting principles
generally accepted in the United States of America as applied to governmental units. The
Governmental Accounting Standards Board is the accepted standard-setting body for establishing
governmental accounting and financial reporting principles.
The Measure W Funds are accounted for using the modified accrual basis of accounting. Under this
basis, revenues are recognized when they become both measurable and available to finance
expenditures of the fiscal period. Expenditures are recognized when the liability is incurred.
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473
December 16, 2022
San Mateo County Transportation Authority
120 San Carlos Avenue
San Carlos, California 94070
Management’s Report on Compliance with the Agreement for Distribution of San Mateo County
Measure W Funds for Local Transportation Purposes in accordance with the San Mateo County
Congestion Relief Plan
The City of South San Francisco is responsible for complying with the Agreement for Distribution of San
Mateo County Measure W Funds for Local Transportation Purposes in Accordance with the San Mateo
County Congestion Relief Plan (the Agreement) between the City and the San Mateo County Transportation
Authority entered into on October 1, 2019. The Agreement states that in return for receiving an annual
allocation of a specified portion of the retail transactions and use tax approved by Measure W – San Mateo
County Transportation Expenditure Plan (the Measure), the City agrees that funds shall not be used to
replace funds previously provided for public transportation investments, and that City will limit the use of
funds provided pursuant to this Agreement to invest in major arterial and local roadway improvements in
key congested areas throughout the County, focusing on improving safety, reducing congestion, and
supporting all modes of travel on the County’s roadway system.
With respect to compliance with the Agreement, management attests to the following for the year ended
June 30, 2022:
Management is responsible for establishing and maintaining an effective internal control
structure with respect to compliance with the Agreement;
Management is responsible for complying with the Agreement;
Management has evaluated the City’s compliance with the requirements of the Agreement;
All Transactions, as summarized in the preceding Balance Sheet and Schedule of Revenues,
Expenditures and Changes in Fund Balance for the Year Ended June 30, 2022, are in
compliance with the Agreement.
__________________________ ________________________
City Manager Finance Director
CITY COUNCIL 2022
FLOR NICOLAS, MAYOR (DIST. 3)
MARK NAGALES, VICE MAYOR (DIST. 2)
MARK ADDIEGO, MEMBER (DIST. 1)
JAMES COLEMAN, MEMBER (DIST. 4)
EDDIE FLORES, MEMBER (DIST. 5)
MIKE FUTRELL, CITY MANAGER
SHARON RANALS, INTERIM CITY MANAGER
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Acting
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475
INDEPENDENT ACCOUNTANT’S REPORT ON
APPLYING AGREED UPON PROCEDURES FOR
COMPLIANCE WITH THE PROPOSITION 111
2021-2022 APPROPRIATIONS LIMIT INCREMENT
Honorable Mayor and Members of the City Council
City of South San Francisco, California
We have performed the procedures enumerated below on the Appropriations Limit Worksheet (Worksheet)
of the City of South San Francisco, California, for the year ended June 30, 2022. The City’s management is
responsible for the Worksheet.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the
intended purpose of these procedures, which were suggested by the League of California Cities and
presented in their Article XIIIB Appropriations Limitation Uniform Guidelines, were performed solely to
assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This
report may not be suitable for any other purpose. The procedures performed may not address all the items
of interest to a user of this report and may not meet the needs of all users of this report and, as such, users
are responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and associated findings were as follows:
A. We obtained the Worksheet and determined that the 2021-2022 Appropriations Limit of
$158,259,206 and annual adjustment factors were adopted by Resolution of the City Council.
However, we were not able to determine if the population and inflation options were selected by a
recorded vote of the City Council.
B. We recomputed the 2021-2022 Appropriations Limit by multiplying the 2020-2021 Prior Year
Appropriations Limit by the Total Growth Factor.
C. For the Worksheet, we agreed the Per Capita Income Factor and City Population Factor to
California State Department of Finance Worksheets. The County Population Factor was not
included in the City’s Worksheet.
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our
engagement in accordance with attestation standards established by the American Institute of Certified
Public Accountants. We were not engaged to and did not conduct an examination or review engagement,
the objective of which would be the expression of an opinion or conclusion, respectively, on the Worksheet.
Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures,
other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance
with the relevant ethical requirements related to our agreed-upon procedures engagement.
Attachment 5
476
This report is intended solely for the information and use of management and the City Council and is not
intended to be and should not be used by anyone other than those specified parties; however, this
restriction is not intended to limit the distribution of this report, which is a matter of public record.
Pleasant Hill, California
December 27, 2022
477
CITY OF SOUTH SAN FRANCISCO
REQUIRED COMMUNICATIONS
FOR THE YEAR ENDED
JUNE 30, 2022
Attachment 6
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479
CITY OF SOUTH SAN FRANCISCO
REQUIRED COMMUNICATIONS
For the Year Ended June 30, 2022
Table of Contents
Page
Required Communications ................................................................................................................................ 1
Significant Audit Matters:
Qualitative Aspects of Accounting Practices ................................................................................... 1
Difficulties Encountered in Performing the Audit ........................................................................... 4
Corrected and Uncorrected Misstatements ...................................................................................... 4
Disagreements with Management .................................................................................................... 4
Management Representations ............................................................................................................ 4
Management Consultations with Other Independent Accountants ................................................. 4
Other Audit Findings and Issues ........................................................................................................ 4
Other Information Accompanying the Financial Statements ................................................................... 5
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481
REQUIRED COMMUNICATIONS
To the City Council of
the City of South San Francisco, California
We have audited the basic financial statements of the City of South San Francisco, California, for the year
ended June 30, 2022. We did not audit the financial statements of the South San Francisco Conference
Center Authority, a discretely presented component unit of the City, as of and for the year ended June 30,
2022, which represents 0.64%, 0.82%, and 1.08%, of the assets, net position and revenues, respectively,
of the primary government. The component unit financial statements were audited by another auditor,
whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts
included for this entity, is based solely on the report of the other auditors.
Professional standards require that we provide you with information about our responsibilities under
generally accepted auditing standards and 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 July 12, 2022 and in our meeting with the City Manager on
October 8, 2022. Professional standards also require that we communicate to you the following
information related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Accounting Policies - Management is responsible for the selection and use of appropriate accounting
policies. The significant accounting policies used by the City are described in Note 1 to the financial
statements. No new accounting policies were adopted, and the application of existing policies was not
changed during the year, except the following Governmental Accounting Standards Board (GASB)
pronouncements became effective:
GASB 87 – Leases
The objective of this Statement is to better meet the information needs of financial statement
users by improving accounting and financial reporting for leases by governments. This Statement
increases the usefulness of governments’ financial statements by requiring recognition of certain
lease assets and liabilities for leases that previously were classified as operating leases and
recognized as inflows of resources or outflows of resources based on the payment provisions of
the contract. It establishes a single model for lease accounting based on the foundational principle
that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is
required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is
required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the
relevance and consistency of information about governments’ leasing activities.
1 482
A lease is defined as a contract that conveys control of the right to use another entity’s
nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an
exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land,
vehicles, and equipment. Any contract that meets this definition should be accounted for under
the leases guidance, unless specifically excluded in this Statement.
The pronouncement became effective, and as disclosed in Note 1T to the financial statements
required a prior period restatement for the cumulative effect on the financial statements.
GASB 97 – Certain Component Unit Criteria, and Accounting and Financial Reporting for
Internal Revenue Code Section 457 Deferred Compensation Plans—An
Amendment of GASB Statements No. 14 and No. 84, and a Supersession of GASB
Statement No. 32
The primary objectives of this Statement are to (1) increase consistency and comparability related
to the reporting of fiduciary component units in circumstances in which a potential component
unit does not have a governing board and the primary government performs the duties that a
governing board typically would perform; (2) mitigate costs associated with the reporting of
certain defined contribution pension plans, defined contribution other postemployment benefit
(OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other
employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and
(3) enhance the relevance, consistency, and comparability of the accounting and financial
reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457
plans) that meet the definition of a pension plan and for benefits provided through those plans.
The pronouncement became effective, and required revisions to the disclosures related to the
City’s deferred compensation plan as disclosed in Note 8 to the financial statements.
The following pronouncements became effective, but did not have a material effect on the financial
statements:
GASB 89 – Accounting for Interest Cost Incurred before the End of a Construction Period
GASB 90 – Majority Equity Interests (an amendment of GASB Statements No. 14 and No. 61)
GASB 92 – Omnibus 2020
GASB 93 – Replacement of Interbank Offered Rates
GASB 99 – Omnibus 2022 (paragraphs 26-32)
Unusual Transactions, Controversial or Emerging Areas - We noted no transactions entered into by the
City 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.
2 483
Accounting Estimates - 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 City’s
financial statements were:
Estimated Fair Value of Investments: As of June 30, 2022, the City held approximately $454.6
million of cash and investments as measured by fair value as disclosed in Note 2 to the financial
statements. Fair value is essentially market pricing in effect as of June 30, 2022. These fair
values are not required to be adjusted for changes in general market conditions occurring
subsequent to June 30, 2022.
Estimate of Depreciation: Management’s estimate of the depreciation is based on useful lives
determined by management. These lives have been determined by management based on the
expected useful life of assets as disclosed in Note 1K to the financial statements. We evaluated
the key factors and assumptions used to develop the depreciation estimate and determined that it
is reasonable in relation to the basic financial statements taken as a whole.
Estimated Net Pension Liabilities and Pension-Related Deferred Outflows and Inflows of
Resources: Management’s estimate of the net pension liabilities and deferred outflows/inflows of
resources are disclosed in Note 7 to the financial statements and are based on actuarial studies and
accounting valuations determined by the California Public Employees Retirement System, which
are based on the experience of the City. We evaluated the key factors and assumptions used to
develop the estimates and determined that the estimates are reasonable in relation to the basic
financial statements taken as a whole.
Estimated Net OPEB Liability and OPEB-Related Deferred Outflows and Inflows of Resources:
Management’s estimate of the net OPEB liability and deferred outflows/inflows of resources are
disclosed in Note 9 to the financial statements and are based on an actuarial study determined by
a consultant, which is based on the experience of the City. We evaluated the key factors and
assumptions used to develop the estimates and determined that the estimates are reasonable in
relation to the basic financial statements taken as a whole.
Estimated Compensated Absences: Accrued compensated absences, which are comprised of
accrued vacation and sick leave, is estimated using accumulated unpaid leave hours and hourly
pay rates in effect at the end of the fiscal year, and are disclosed in Note 1L to the financial
statements. We evaluated the key factors and assumptions used to develop the accrued
compensated absences and determined that it is reasonable in relation to the basic financial
statements taken as a whole.
\
Estimated Claims Liabilities: Management’s estimate of the claims liabilities payable is disclosed
in Note 12 to the financial statements and the worker’s compensation claims payable is based on
an actuarial study determined by a consultant and the general liability claims payable is based on
estimates determined by the City’s third party claims administrator, which are both based on the
claims experience of the City. We evaluated the key factors and assumptions used to develop the
estimate and determined that it is reasonable in relation to the basic financial statements taken as
a whole.
Disclosures - The financial statement disclosures are neutral, consistent, and clear.
3 484
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
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. Management has corrected all such misstatements. In addition, none of the misstatements
detected as a result of audit procedures and corrected by management were material, either individually or
in the aggregate, to each opinion unit’s financial statements taken as a whole.
Professional standards require us to accumulate all known and likely uncorrected misstatements identified
during the audit, other than those that are trivial, and communicate them to the appropriate level of
management. We have no such misstatements to report to the City Council.
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 auditor’s 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 a management
representation letter dated December 27, 2022.
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 City’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 City’s auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
4 485
Other Information Accompanying the Financial Statements
We applied certain limited procedures to the required supplementary information that accompanies and
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 required supplementary information
and do not express an opinion or provide any assurance on the required supplementary information.
We were engaged to report on the supplementary information which accompany the financial statements,
but are not required supplementary information. 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.
We were not engaged to report on the Introductory and Statistical Sections which accompany the financial
statements, but are not required supplementary information. Such information has not been subjected to the
auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express
an opinion or provide any assurance on them.
******
This information is intended solely for the use of City Council and management and is not intended to be,
and should not be, used by anyone other than these specified parties.
Pleasant Hill, California
December 27, 2022
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487
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
FOR THE YEAR ENDED
JUNE 30, 2022
Attachment 7
488
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489
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
For the Year Ended June 30, 2022
Table of Contents
Page
Memorandum on Internal Control ................................................................................................................... 1
Schedule of Other Matters ....................................................................................................................... 3
Status of Prior Year Other Matters ........................................................................................................ 13
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491
1
MEMORANDUM ON INTERNAL CONTROL
To the City Council of
The City of South San Francisco, California
We have audited the basic financial statements of the City of South San Francisco, California, for the year
ended June 30, 2022, and have issued our report thereon dated December 27, 2022. Our opinions on the
basic financial statements and this report, insofar as they relate to the South San Francisco Conference
Center Authority, are based solely on the report of other auditors. In planning and performing our audit
of the basic financial statements of the City as of and for the year ended June 30, 2022, in accordance
with auditing standards generally accepted in the United States of America, we considered the City’s
internal control over financial reporting (internal control) as a basis for designing our audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal
control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control was for the limited purpose described in the first paragraph and was
not designed to identify all deficiencies in internal control that might be material weaknesses. In addition,
because of inherent limitations in internal control, including the possibility of management override of
controls, misstatements due to error or fraud may occur and not be detected by such controls. Given these
limitations, during our audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we
believe are opportunities for strengthening internal controls and operating efficiency or other
informational items.
This communication is intended solely for the information and use of management, City Council, others
within the organization, and agencies and pass-through entities requiring compliance with Government
Auditing Standards and is not intended to be and should not be used by anyone other than these specified
parties.
Pleasant Hill, California
December 27, 2022
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NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE
The following comment represents new pronouncements taking affect in the next few years. We have
cited them here to keep you informed of developments:
EFFECTIVE FISCAL YEARS 2021/22, 2022/23 and 2023/24:
GASB 99 – Omnibus 2022
The objectives of this Statement are to enhance comparability in accounting and financial reporting and to
improve the consistency of authoritative literature by addressing (1) practice issues that have been
identified during implementation and application of certain GASB Statements and (2) accounting and
financial reporting for financial guarantees. The practice issues addressed by this Statement are as
follows:
• Classification and reporting of derivative instruments within the scope of Statement No. 53,
Accounting and Financial Reporting for Derivative Instruments, that do not meet the definition of
either an investment derivative instrument or a hedging derivative instrument
• Clarification of provisions in Statement No. 87, Leases, as amended, related to the determination
of the lease term, classification of a lease as a short term lease, recognition and measurement of a
lease liability and a lease asset, and identification of lease incentives
• Clarification of provisions in Statement No. 94, Public-Private and Public-Public Partnerships
and Availability Payment Arrangements, related to (a) the determination of the public-private and
public-public partnership (PPP) term and (b) recognition and measurement of installment
payments and the transfer of the underlying PPP asset
• Clarification of provisions in Statement No. 96, Subscription-Based Information Technology
Arrangements, related to the subscription-based information technology arrangement (SBITA)
term, classification of a SBITA as a short term SBITA, and recognition and measurement of a
subscription liability
• Extension of the period during which the London Interbank Offered Rate (LIBOR) is considered
an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an
interest rate swap that hedges the interest rate risk of taxable debt
• Accounting for the distribution of benefits as part of the Supplemental Nutrition Assistance
Program (SNAP)
• Disclosures related to nonmonetary transactions
• Pledges of future revenues when resources are not received by the pledging government
• Clarification of provisions in Statement No. 34, Basic Financial Statements—and Management’s
Discussion and Analysis—for State and Local Governments, as amended, related to the focus of
the government-wide financial statements
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GASB 99 – Omnibus 2022 (Continued)
• Terminology updates related to certain provisions of Statement No. 63, Financial Reporting of
Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position
• Terminology used in Statement 53 to refer to resource flows statements.
The Requirements of this Statement are Effective as Follows:
The requirements in paragraphs 26–32 related to extension of the use of LIBOR, accounting for SNAP
distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging
governments, clarification of certain provisions in Statement 34, as amended, and terminology updates
related to Statement 53 and Statement 63 are effective upon issuance.
The requirements in paragraphs 11–25 related to leases, PPPs, and SBITAs are effective for fiscal years
beginning after June 15, 2022, and all reporting periods thereafter.
The requirements in paragraphs 4–10 related to financial guarantees and the classification and reporting
of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after
June 15, 2023, and all reporting periods thereafter.
Earlier application is encouraged and is permitted by individual topic.
How the Changes in This Statement Will Improve Financial Reporting
The requirements of this Statement will enhance comparability in the application of accounting and
financial reporting requirements and will improve the consistency of authoritative literature. Consistent
authoritative literature enables governments and other stakeholders to more easily locate and apply the
correct accounting and financial reporting provisions, which improves the consistency with which such
provisions are applied. The comparability of financial statements also will improve as a result of this
Statement. Better consistency and comparability improve the usefulness of information for users of state
and local government financial statements.
EFFECTIVE FISCAL YEAR 2022/23:
GASB 91 – Conduit Debt Obligations
The primary objectives of this Statement are to provide a single method of reporting conduit debt
obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by
issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This
Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation;
establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for
accounting and financial reporting of additional commitments and voluntary commitments extended by
issuers and arrangements associated with conduit debt obligations; and improving required note
disclosures.
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GASB 91 – Conduit Debt Obligations (Continued)
A conduit debt obligation is defined as a debt instrument having all of the following characteristics:
• There are at least three parties involved:
(1) an issuer
(2) a third-party obligor, and
(3) a debt holder or a debt trustee.
• The issuer and the third-party obligor are not within the same financial reporting entity.
• The debt obligation is not a parity bond of the issuer, nor is it cross-collateralized with other debt
of the issuer.
• The third-party obligor or its agent, not the issuer, ultimately receives the proceeds from the debt
issuance.
• The third-party obligor, not the issuer, is primarily obligated for the payment of all amounts
associated with the debt obligation (debt service payments).
All conduit debt obligations involve the issuer making a limited commitment. Some issuers extend
additional commitments or voluntary commitments to support debt service in the event the third party is,
or will be, unable to do so.
An issuer should not recognize a conduit debt obligation as a liability. However, an issuer should
recognize a liability associated with an additional commitment or a voluntary commitment to support debt
service if certain recognition criteria are met. As long as a conduit debt obligation is outstanding, an
issuer that has made an additional commitment should evaluate at least annually whether those criteria are
met. An issuer that has made only a limited commitment should evaluate whether those criteria are met
when an event occurs that causes the issuer to reevaluate its willingness or ability to support the obligor’s
debt service through a voluntary commitment.
This Statement also addresses arrangements—often characterized as leases—that are associated with
conduit debt obligations. In those arrangements, capital assets are constructed or acquired with the
proceeds of a conduit debt obligation and used by third-party obligors in the course of their activities.
Payments from third-party obligors are intended to cover and coincide with debt service payments.
During those arrangements, issuers retain the titles to the capital assets. Those titles may or may not pass
to the obligors at the end of the arrangements.
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GASB 91 – Conduit Debt Obligations (Continued)
Issuers should not report those arrangements as leases, nor should they recognize a liability for the related
conduit debt obligations or a receivable for the payments related to those arrangements. In addition, the
following provisions apply:
• If the title passes to the third-party obligor at the end of the arrangement, an issuer should not
recognize a capital asset.
• If the title does not pass to the third-party obligor and the third party has exclusive use of the
entire capital asset during the arrangement, the issuer should not recognize a capital asset until the
arrangement ends.
• If the title does not pass to the third-party obligor and the third party has exclusive use of only
portions of the capital asset during the arrangement, the issuer, at the inception of the
arrangement, should recognize the entire capital asset and a deferred inflow of resources. The
deferred inflow of resources should be reduced, and an inflow recognized, in a systematic and
rational manner over the term of the arrangement.
This Statement requires issuers to disclose general information about their conduit debt obligations,
organized by type of commitment, including the aggregate outstanding principal amount of the issuers’
conduit debt obligations and a description of each type of commitment. Issuers that recognize liabilities
related to supporting the debt service of conduit debt obligations also should disclose information about
the amount recognized and how the liabilities changed during the reporting period.
How the Changes in this Statement will Improve Financial Reporting
The requirements of this Statement will improve financial reporting by eliminating the existing option for
issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in
practice. The clarified definition will resolve stakeholders’ uncertainty as to whether a given financing is,
in fact, a conduit debt obligation. Requiring issuers to recognize liabilities associated with additional
commitments extended by issuers and to recognize assets and deferred inflows of resources related to
certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby
improving comparability in reporting by issuers. Revised disclosure requirements will provide financial
statement users with better information regarding the commitments issuers extend and the likelihood that
they will fulfill those commitments. That information will inform users of the potential impact of such
commitments on the financial resources of issuers and help users assess issuers’ roles in conduit debt
obligations.
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GASB 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements
The primary objective of this Statement is to improve financial reporting by addressing issues related to
public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an
arrangement in which a government (the transferor) contracts with an operator (a governmental or
nongovernmental entity) to provide public services by conveying control of the right to operate or use a
nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of
time in an exchange or exchange-like transaction. Some PPPs meet the definition of a service concession
arrangement (SCA), which the Board defines in this Statement as a PPP in which (1) the operator collects
and is compensated by fees from third parties; (2) the transferor determines or has the ability to modify or
approve which services the operator is required to provide, to whom the operator is required to provide
the services, and the prices or rates that can be charged for the services; and (3) the transferor is entitled to
significant residual interest in the service utility of the underlying PPP asset at the end of the arrangement.
This Statement also provides guidance for accounting and financial reporting for availability payment
arrangements (APAs). As defined in this Statement, an APA is an arrangement in which a government
compensates an operator for services that may include designing, constructing, financing, maintaining, or
operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like
transaction.
PPPs – This Statement requires that PPPs that meet the definition of a lease apply the guidance in
Statement No. 87, Leases, as amended, if existing assets of the transferor that are not required to be
improved by the operator as part of the PPP arrangement are the only underlying PPP assets and the PPP
does not meet the definition of an SCA. This Statement provides accounting and financial reporting
requirements for all other PPPs: those that either (1) meet the definition of an SCA or (2) are not within
the scope of Statement 87, as amended (as clarified by this Statement). The PPP term is defined as the
period during which an operator has a noncancelable right to use an underlying PPP asset, plus, if
applicable, certain periods if it is reasonably certain, based on all relevant factors, that the transferor or the
operator either will exercise an option to extend the PPP or will not exercise an option to terminate the
PPP.
A transferor generally should recognize an underlying PPP asset as an asset in financial statements
prepared using the economic resources measurement focus. However, in the case of an underlying PPP
asset that is not owned by the transferor or is not the underlying asset of an SCA, a transferor should
recognize a receivable measured based on the operator’s estimated carrying value of the underlying PPP
asset as of the expected date of the transfer in ownership. In addition, a transferor should recognize a
receivable for installment payments, if any, to be received from the operator in relation to the PPP.
Measurement of a receivable for installment payments should be at the present value of the payments
expected to be received during the PPP term. A transferor also should recognize a deferred inflow of
resources for the consideration received or to be received by the transferor as part of the PPP. Revenue
should be recognized by a transferor in a systematic and rational manner over the PPP term.
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GASB 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements
(Continued)
This Statement requires a transferor to recognize a receivable for installment payments and a deferred
inflow of resources to account for a PPP in financial statements prepared using the current financial
resources measurement focus. Governmental fund revenue would be recognized in a systematic and
rational manner over the PPP term.
This Statement also provides specific guidance in financial statements prepared using the economic
resources measurement focus for a government that is an operator in a PPP that either (1) meets the
definition of an SCA or (2) is not within the scope of Statement 87, as amended (as clarified in this
Statement). An operator should report an intangible right-to-use asset related to an underlying PPP asset
that either is owned by the transferor or is the underlying asset of an SCA. Measurement of the right-to-
use asset should be the amount of consideration to be provided to the transferor, plus any payments made
to the transferor at or before the commencement of the PPP term, and certain direct costs. For an
underlying PPP asset that is not owned by the transferor and is not the underlying asset of an SCA, an
operator should recognize a liability measured based on the estimated carrying value of the underlying
PPP asset as of the expected date of the transfer in ownership. In addition, an operator should recognize a
liability for installment payments, if any, to be made to the transferor in relation to the PPP. Measurement
of a liability for installment payments should be at the present value of the payments expected to be made
during the PPP term. An operator also should recognize a deferred outflow of resources for the
consideration provided or to be provided to the transferor as part of the PPP. Expense should be
recognized by an operator in a systematic and rational manner over the PPP term.
This Statement also requires a government to account for PPP and non-PPP components of a PPP as
separate contracts. If a PPP involves multiple underlying assets, a transferor and an operator in certain
cases should account for each underlying PPP asset as a separate PPP. To allocate the contract price to
different components, a transferor and an operator should use contract prices for individual components
as long as they do not appear to be unreasonable based on professional judgment or use professional
judgment to determine their best estimate if there are no stated prices or if stated prices appear to be
unreasonable. If determining the best estimate is not practicable, multiple components in a PPP should be
accounted for as a single PPP.
This Statement also requires an amendment to a PPP to be considered a PPP modification, unless the
operator’s right to use the underlying PPP asset decreases, in which case it should be considered a partial
or full PPP termination. A PPP termination should be accounted for by a transferor by reducing, as
applicable, any receivable for installment payments or any receivable related to the transfer of ownership
of the underlying PPP asset and by reducing the related deferred inflow of resources. An operator should
account for a termination by reducing the carrying value of the right-to-use asset and, as applicable, any
liability for installment payments or liability to transfer ownership of the underlying PPP asset. A PPP
modification that does not qualify as a separate PPP should be accounted for by remeasuring PPP assets
and liabilities.
APAs – An APA that is related to designing, constructing, and financing a nonfinancial asset in which
ownership of the asset transfers by the end of the contract should be accounted for by a government as a
financed purchase of the underlying nonfinancial asset. This Statement requires a government that
engaged in an APA that contains multiple components to recognize each component as a separate
arrangement. An APA that is related to operating or maintaining a nonfinancial asset should be reported
by a government as an outflow of resources in the period to which payments relate.
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GASB 96 – Subscription-Based Information Technology Arrangements
This Statement provides guidance on the accounting and financial reporting for subscription-based
information technology arrangements (SBITAs) for government end users (governments). This Statement
(1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an
intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for
outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires
note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the
standards established in Statement No. 87, Leases, as amended.
A SBITA is defined as a contract that conveys control of the right to use another party’s (a SBITA
vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the
underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like
transaction.
The subscription term includes the period during which a government has a noncancelable right to use the
underlying IT assets. The subscription term also includes periods covered by an option to extend (if it is
reasonably certain that the government or SBITA vendor will exercise that option) or to terminate (if it is
reasonably certain that the government or SBITA vendor will not exercise that option).
Under this Statement, a government generally should recognize a right-to-use subscription asset—an
intangible asset—and a corresponding subscription liability. A government should recognize the
subscription liability at the commencement of the subscription term, —which is when the subscription
asset is placed into service. The subscription liability should be initially measured at the present value of
subscription payments expected to be made during the subscription term. Future subscription payments
should be discounted using the interest rate the SBITA vendor charges the government, which may be
implicit, or the government’s incremental borrowing rate if the interest rate is not readily determinable. A
government should recognize amortization of the discount on the subscription liability as an outflow of
resources (for example, interest expense) in subsequent financial reporting periods.
The subscription asset should be initially measured as the sum of (1) the initial subscription liability
amount, (2) payments made to the SBITA vendor before commencement of the subscription term, and (3)
capitalizable implementation costs, less any incentives received from the SBITA vendor at or before the
commencement of the subscription term. A government should recognize amortization of the subscription
asset as an outflow of resources over the subscription term.
Activities associated with a SBITA, other than making subscription payments, should be grouped into the
following three stages, and their costs should be accounted for accordingly:
• Preliminary Project Stage, including activities such as evaluating alternatives, determining needed
technology, and selecting a SBITA vendor. Outlays in this stage should be expensed as incurred.
• Initial Implementation Stage, including all ancillary charges necessary to place the subscription
asset into service. Outlays in this stage generally should be capitalized as an addition to the
subscription asset.
• Operation and Additional Implementation Stage, including activities such as subsequent
implementation activities, maintenance, and other activities for a government’s ongoing
operations related to a SBITA. Outlays in this stage should be expensed as incurred unless they
meet specific capitalization criteria.
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GASB 96 – Subscription-Based Information Technology Arrangements (Continued)
In classifying certain outlays into the appropriate stage, the nature of the activity should be the
determining factor. Training costs should be expensed as incurred, regardless of the stage in which they
are incurred.
If a SBITA contract contains multiple components, a government should account for each component as a
separate SBITA or nonsubscription component and allocate the contract price to the different
components. If it is not practicable to determine a best estimate for price allocation for some or all
components in the contract, a government should account for those components as a single SBITA.
This Statement provides an exception for short-term SBITAs. Short-term SBITAs have a maximum
possible term under the SBITA contract of 12 months (or less), including any options to extend,
regardless of their probability of being exercised. Subscription payments for short-term SBITAs should
be recognized as outflows of resources.
This Statement requires a government to disclose descriptive information about its SBITAs other than
short-term SBITAs, such as the amount of the subscription asset, accumulated amortization, other
payments not included in the measurement of a subscription liability, principal and interest requirements
for the subscription liability, and other essential information.
How the Changes in this Statement will Improve Financial Reporting
The requirements of this Statement will improve financial reporting by establishing a definition for
SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet
that definition. That definition and uniform guidance will result in greater consistency in practice.
Establishing the capitalization criteria for implementation costs also will reduce diversity and improve
comparability in financial reporting by governments. This Statement also will enhance the relevance and
reliability of a government’s financial statements by requiring a government to report a subscription asset
and subscription liability for a SBITA and to disclose essential information about the arrangement. The
disclosures will allow users to understand the scale and important aspects of a government’s SBITA
activities and evaluate a government’s obligations and assets resulting from SBITAs.
EFFECTIVE FISCAL YEAR 2023/24:
GASB 100 – Accounting for Changes and Error Corrections
The primary objective of this Statement is to enhance accounting and financial reporting requirements for
accounting changes and error corrections to provide more understandable, reliable, relevant, consistent,
and comparable information for making decisions or assessing accountability
This Statement defines accounting changes as changes in accounting principles, changes in accounting
estimates, and changes to or within the financial reporting entity and describes the transactions or other
events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting
principles and (2) certain changes in accounting estimates that result from a change in measurement
methodology, a new principle or methodology should be justified on the basis that it is preferable to the
principle or methodology used before the change. That preferability should be based on the qualitative
characteristics of financial reporting—understandability, reliability, relevance, timeliness, consistency,
and comparability. This Statement also addresses corrections of errors in previously issued financial
statements.
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GASB 100 – Accounting for Changes and Error Corrections (Continued)
This Statement prescribes the accounting and financial reporting for (1) each type of accounting change
and (2) error corrections. This Statement requires that (a) changes in accounting principles and error
corrections be reported retroactively by restating prior periods, (b) changes to or within the financial
reporting entity be reported by adjusting beginning balances of the current period, and (c) changes in
accounting estimates be reported prospectively by recognizing the change in the current period. The
requirements of this Statement for changes in accounting principles apply to the implementation of a new
pronouncement in absence of specific transition provisions in the new pronouncement. This Statement
also requires that the aggregate amount of adjustments to and restatements of beginning net position, fund
balance, or fund net position, as applicable, be displayed by reporting unit in the financial statements.
This Statement requires disclosure in notes to financial statements of descriptive information about
accounting changes and error corrections, such as their nature. In addition, information about the
quantitative effects on beginning balances of each accounting change and error correction should be
disclosed by reporting unit in a tabular format to reconcile beginning balances as previously reported to
beginning balances as restated.
Furthermore, this Statement addresses how information that is affected by a change in accounting
principle or error correction should be presented in required supplementary information (RSI) and
supplementary information (SI). For periods that are earlier than those included in the basic financial
statements, information presented in RSI or SI should be restated for error corrections, if practicable, but
not for changes in accounting principles.
EFFECTIVE FISCAL YEAR 2024/25:
GASB 101 – Compensated Absences
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. That objective is
achieved by aligning the recognition and measurement guidance under a unified model and by amending
certain previously required disclosures.
Recognition And Measurement
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not
been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A
liability should be recognized for leave that has not been used if (a) the leave is attributable to services
already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time
off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already
rendered when an employee has performed the services required to earn the leave. Leave that accumulates
is carried forward from the reporting period in which it is earned to a future reporting period during which
it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not
to be used or otherwise paid or settled, a government should consider relevant factors such as
employment policies related to compensated absences and historical information about the use or
payment of compensated absences. However, leave that is more likely than not to be settled through
conversion to defined benefit postemployment benefits should not be included in a liability for
compensated absences.
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GASB 101 – Compensated Absences (Continued)
This Statement requires that a liability for certain types of compensated absences—including parental
leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement
also requires that a liability for specific types of compensated absences not be recognized until the leave
is used.
This Statement also establishes guidance for measuring a liability for leave that has not been used,
generally using an employee’s pay rate as of the date of the financial statements. A liability for leave that
has been used but not yet paid or settled should be measured at the amount of the cash payment or
noncash settlement to be made. Certain salary-related payments that are directly and incrementally
associated with payments for leave also should be included in the measurement of the liabilities.
With respect to financial statements prepared using the current financial resources measurement focus,
this Statement requires that expenditures be recognized for the amount that normally would be liquidated
with expendable available financial resources.
Notes To Financial Statements
This Statement amends the existing requirement to disclose the gross increases and decreases in a liability
for compensated absences to allow governments to disclose only the net change in the liability (as long as
they identify it as a net change). In addition, governments are no longer required to disclose which
governmental funds typically have been used to liquidate the liability for compensated absences.
How the Changes in this Statement Will Improve Financial Reporting
The unified recognition and measurement model in this Statement will result in a liability for
compensated absences that more appropriately reflects when a government incurs an obligation. In
addition, the model can be applied consistently to any type of compensated absence and will eliminate
potential comparability issues between governments that offer different types of leave.
The model also will result in a more robust estimate of the amount of compensated absences that a
government will pay or settle, which will enhance the relevance and reliability of information about the
liability for compensated absences.
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STATUS OF PRIOR YEAR OTHER MATTERS
2021-01 Uninsured and Uncollateralized Bank Deposits
Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned
to it. California Law requires banks and savings and loan institutions to pledge government securities
with a fair value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a fair value
of 150% of the deposit, as collateral for these deposits that are in excess of the FDIC insurance level of
$250,000. Under California Law this collateral is held in a separate investment pool by another
institution in the City’s name and places the City ahead of general creditors of the institution.
The City’s account balances with its fiscal agent that processes transactions related to bond issuances are
only insured up to the FDIC level of $250,000. Cash balances held by the fiscal agent in excess of that
balance are not insured or collateralized. As of June 30, 2021, $103,801,305 of the City’s bank balances
of $119,581,015 were exposed to custodial credit risk, because the balance in the fiscal agent account
related to the 2021A Community Civic Campus Project Lease Revenue Bonds was uninsured and
uncollateralized.
We understand the large cash balance was held by the fiscal agent due to timing of receipt of the bond
proceeds for the Bonds, as well as delays on the bank’s side in opening up a new investment account. As
a result, the City was not able to transfer the bond proceeds to a Local Agency Investment Fund (LAIF)
investment account until August 2021.
In the future, the City should ensure that all cash balances in excess of FDIC insurance are collateralized
to minimize custodial credit risk.
Current Status:
Implemented
2020-01 Documentation of Timely Preparation and Review of Bank and Investment
Reconciliations
Bank account and investment reconciliations are one of the most important internal controls a City can
have, and the reconciliation cannot be considered complete until it has been reviewed and approved. To
be an effective control, reconciliations and the associated review should be completed in their entirety as
soon as reasonably possible after each month-end, usually within thirty to forty-five days of the bank
statement date. The dates of preparation and performance of review of the reconciliations should be
documented to clearly indicate proper internal controls are in place and the reconciliation process was
completed timely. In addition, the Reporting Section of the City’s Investment Policy requires that the
City provide a quarterly investment report to the City Council.
We selected the October 2019, January 2020 and June 2020 reconciliations for testing and noted that they
were reviewed in December 2019, April 2020, and September 2020, respectively, but there was no
documentation of when the reconciliations had been prepared. In addition, we noted that the June 30,
2020 quarterly Investment Report was not provided to the City Council until October 2020.
We understand that City staff did not realize that the preparation date of the reconciliations should be
formally documented, and we also understand that during the fiscal year the City fell behind on the bank
and investment reconciliations and the preparation of the Investment Report due to the COVID-19
pandemic and City staff working remotely.
13 504
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
STATUS OF PRIOR YEAR OTHER MATTERS
2020-01 Documentation of Timely Preparation and Review of Bank and Investment
Reconciliations (Continued)
Update for June 30, 2021: We selected the September 2020, March 2021 and June 2021 reconciliations
for testing and noted that they were reviewed on December 7, 2020, May 17, 2021 and October 28, 2021.
Although we noted the March 2021 reconciliation was prepared and reviewed timely, the others were not.
We understand that during the fiscal year the City continued to fall behind on the bank and investment
reconciliations due to the COVID-19 pandemic and City staff working remotely.
By not completing and reviewing the bank reconciliations timely, accounting errors, misstatements and/or
unauthorized activities may not be identified or corrected in a timely manner and could accumulate to
amounts that cannot be identified and resolved.
The City should develop procedures to ensure the timely preparation and review of bank reconciliations
throughout the fiscal year and that the date the reconciliations are prepared is documented in some formal
manner. In addition, the City should ensure that the quarterly investment report is provided timely to the
City Council throughout the fiscal year.
Current Status:
Implemented
14 505
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-100 Agenda Date:2/8/2023
Version:1 Item #:8.
Motion to approve the Schematic Design of the Orange Memorial Park Aquatic Center (Project No.pk2310).
(Philip Vitale, Deputy Director of Capital Projects)
RECOMMENDATION
It is recommended that the City Council motion to approve the Schematic Design of the Orange
Memorial Park Aquatic Center Project (Project No.pk2310)authorizing staff to move forward with the
Design Development phase of the project.
BACKGROUND/DISCUSSION
Orange Pool is South San Francisco’s only indoor municipal swimming pool.Opened in 1970,it continues to
serve as a community-wide destination for residents of all ages.Despite the City’s attentive custodianship of
the building,overall,the building’s age and heavy use have resulted in very worn condition of the shell and
interior. The facility is well beyond the point of meriting replacement.
In April 2021,staff presented to the City Council Budget Standing Committee the Wong and Logan Feasibility
Study with recommendation of the construction of a new two-pool facility.In May 2021,staff engaged Group4
Architects from the City’s on-call architecture firm list to explore alternative Aquatic Center locations within
Orange Memorial Park and validate construction costs.
Working from the two-pool facility approach identified in the Wong and Logan study,Group4 refined the
program to include an 8-lane 25-meter lap pool,separate teaching pool,swimmer’s lounge,rentable multi-
use/party room,staff offices,locker rooms and support spaces for mechanical equipment within a 28,500
square-foot single-story facility.
In February 2022,City Council authorized the execution of a professional services agreement with ELS
Architecture and Urban Design for design,construction documentation and construction administration for the
project.In April 2022,City Council authorized the execution of a consulting services agreement with
Swinerton Management and Consulting for project and construction management services for the project.
Community engagement for the Aquatic Center commenced in April 2022,with three workshops and online
surveys. Conceptual Design of the project was completed in September 2022.
In October 2022 Schematic Design commenced,detailing the size and function of the two pools as well as the
layout and size of the natatorium.The Schematic Design Phase concluded in December 2022 with review of the
construction budget for the project,with both Swinerton and ELS providing independent construction cost
estimates based on the Schematic Design Documents.Both estimates were reviewed and reconciled with City
staff,Swinerton and ELS.The reconciled construction cost estimate is $39.6 million,which was 9%above the
City’s budget of $36.0 million.City Staff,Swinerton,and ELS have met several times to develop a list of
design revisions which maintain the Aquatic Center program while reducing cost to meet the $36 million
construction budget.
The City’s geotechnical engineer,Ninyo and Moore,identified a soils issue,advising that the site soil
conditions have a high liquefaction factor resulting in a requirement to amend the soils to support theCity of South San Francisco Printed on 2/3/2023Page 1 of 4
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conditions have a high liquefaction factor resulting in a requirement to amend the soils to support the
foundations of the pools and the building.Solutions include over-excavation at the depths needed for the pool
and building foundations with the addition of geotech fabric and rock to reinforce the bedding for the
foundation.Piers and/or mixing the soils with concrete and steel to stiffen the soils to support the foundation
are also under review and consideration.Once the most cost-effective solution has been agreed to by the
geotechnical,structural and civil engineers,the cost for this additional effort will be estimated and performed as
part of the base project scope of work.
Design Revisions / Cost Savings
City staff,Swinerton,and ELS developed a list of potential design revisions which maintain the Aquatic Center
program while reducing cost to meet the $36 million construction budget.Design revision options to reduce the
overall project cost included the following:
•Reduce width of indoor swimming pool lanes from eight feet to seven feet.Current pool widths are
seven feet.
•Reduction in size of the natatorium (indoor pool building, if lane widths are reduced)
•Delete the canopy trellis at perimeter of outdoor deck
•Delete outdoor terraced seating (sloped lawn and bleacher seating instead)
•Reduce area of new landscaping to the north and west of the project
In January of 2023,staff and the project team presented the Schematic Design to the South San Francisco Parks
and Recreation Commission.The presentation provided an overall project update,explored potential cost
saving measures noted above,examined potential locations for relocating the Veterans Memorial,an operations
cost and fee study and a study to develop an all-electric facility.
Staff also presented the Schematic Design and project update to City Councilmembers through individual
update meetings.
The Commission and members of the public provided comments that support an all-electric facility,prioritized
maintaining 10-lanes with both 25-yard as 25-meter lengths at the outdoor pool,maintaining seven-lanes and
beach-entry at the indoor pool.While the multipurpose room would be nice to have,there was a preference for
including aquatics serving elements over the multipurpose room.
Considering feedback provided by Councilmembers,Commissioners and community members,staff directed
changes to the design that prioritized program,maintain number of lanes,scaled back landscape and building
material to produce $4.6 million in saving. The updated the Schematic Design includes the following program:
•Indoor pool with seven (25-yard) lap lanes and beach entry
•Outdoor pool with 10 (25-yard x 25-meter) lap lanes
•Two sets of locker rooms for each pool
•Two individual family locker rooms
•Activity room (26’ x 32’)
•Pool equipment storage
•Mechanical equipment rooms
•Lobby and circulation space
•Drop-off and ADA parking
•Landscaping integrated with Orange Memorial Park
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The cost savings not only address program overage,but also solved for developing an all-electric facility.The
project will be designed as all-electric as staff works with Peninsula Clean Energy (PCE)to understand how
much they can fund for installation of photovoltaic and possibly photovoltaic thermal systems.
Budget and Schedule
The project is tracking to the following budget:
•Soft Costs (design, permits, and fees)$ 9,000,000
•Hard Costs (construction)$40,000,000
•Total Budget $49,000,000
The $49 million budget is not sufficient to address the soil mitigation costs estimated between $2-3 million.
The approximately $3 million soil issue will likely be funded through the additional bond sale proceeds
originally intended for the Colma Creek Pedestrian Bridge Replacement (pk2306)and Orange Memorial Park
Main Playground Replacement (pk2301) projects.
The project is tracking to the following schedule:
•Design Documents Complete Summer 2023
•Construction Start Fall 2023
•Opening Spring 2025
While the current schedule reflects construction starting approximately eight months later than anticipated,
mostly due to extra time spent on community engagement and design,the project team believes construction
will take less than an initially projected,resulting in approximately six-month overall delay compared to the
schedule shared in Fall 2021.
Community Engagement
Since completing Conceptual Design in October 2022,the project team continued to engage the community on
the project through regular email newsletter announcements,updates to the project webpage
(www.ssf.net/newpool)including presentation materials and frequently asked questions (FAQ).Stakeholder
meetings were held with coaches from the South San Francisco Aquatics Club to review the pool layout,depth,
and amenities.Schematic designs were posted at the lobby of Orange Pool providing opportunities for pool
users to submit written and electronic comments.
Environmental Review
As the entity responsible for carrying out the proposed project,the City is also responsible for examining the
environmental effects of the proposed project and determining the environmental analysis required for the
project to evaluate any impacts.In reviewing the current circumstances and proposed work,City staff is
currently conducting additional environmental analysis to determine whether the proposed project may be
categorically exempt from the California Environmental Quality Act (CEQA)under CEQA Guidelines Section
15302, as a Class 2 “Replacement or Reconstruction” project.
The exemption under Section 15302 applies to the replacement or reconstruction of existing structures and
facilities where the new structure will be located on the same site as the structure replaced and will have
substantially the same purpose and capacity as the structure replaced.In this case,the project is proposing to
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substantially the same purpose and capacity as the structure replaced.In this case,the project is proposing to
replace the existing Orange Pool with an indoor and outdoor pool,both of which will continue to serve as
community swim facilities at the park.
City staff will be working with an on-call environmental consultant to review the project site to confirm if the
project meets the requirements for a Categorical Exemption or if further studies are required to comply with
CEQA requirements.The facts and circumstances being taken into consideration for this environmental review
include the following:demolition of a portion of the existing soccer field at the park site;construction of
associated parking lot,locker rooms,activity room and administrative facilities for the new pools;and increase
in new pools’capacity with additional swim lanes and activity room.The environmental analysis will examine
among other things,whether the proposed construction is anticipated to produce additional or different impacts
from those of the existing facilities.
As the proposed project moves forward with Design Development,City staff will continue to evaluate issues
such as noise,traffic,lighting and reflective sources,and other environmental factors to determine whether the
project would result in significant environmental impacts.Such evaluation would allow the City to confirm
whether the proposed project would be categorically exempt under CEQA,or whether additional environmental
analysis such as an Initial Study/Negative Declaration would be required.
Summary
If the approach and amenities presented in this report meet with City Council approval,the design team will
move into the Design Development phase.Cost estimates will be refined,and the team will endeavor to
maximize pool features wherever possible.Staff will keep City Council apprised as design refinements are
made.
FISCAL IMPACT
This project is included in the City of South San Francisco’s Fiscal Year 2022-23 Capital Improvement
Program with $49 million from bond sales (fund 524).
RELATIONSHIP TO STRATEGIC PLAN
Approval of this action will contribute to the City’s Strategic Plan.It aligns with Priority #2,which is focused
on enhancing quality of life by building and maintaining a sustainable city,making the city a great place to live,
learn and play.
CONCLUSION
Staff recommends that the City Council review the Schematic Design of the Orange Memorial Park Aquatic
Center Project (Project No. pk2310) and authorize staff to move forward with the Design Development phase
of the project.
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Orange Memorial Park
Aquatic Center
City Council Meeting
February 8, 2023
Schematic Design Presentation
510
o Construct a new 24,000 sf facility
o Two pools
•Outdoor, 10-lane cool-water lap pool with wind screen
•Indoor, 7-lane warm-water teaching/recreation pool
o Swimmer's Lounge & Activity Room
o Maintain operation of existing pool throughout construction
of the new pool facility
PROJECT SCOPE
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3
COMMUNITY ENGAGEMENT SCHEMATIC DESIGN
•Stakeholder Meeting (SSF Aquatics Club)
•Eblasts
•Webpage (Presentation Materials & FAQ)
•Tabling at Orange Pool (January 8-20, 2023)
•Parks and Recreation Commission Update (January 17, 2023)
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4
PROJECT BUDGET
Soft Costs (design, permits, fees)$9M
Hard Costs (construction)$40M ($36M + $4M Contingency)
Total Project Budget $49M
Soil Stabilization / Mitigation $2-3M
Measure W Bond Sale Projects –Round 3
Total Project Budget Bond Sale Other Sources
New Aquatic Center $49M $49M
Colma Creek Bridge Replacement $3M $1.5M $1.5M
All-Abilities Playground Replacement $6M $2.2M $3.8M
Orange Memorial Park Sports Fields $14M $12.3M $1.7M
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5
PROJECT BUDGET
Soft Costs (design, permits, fees)$9M
Hard Costs (construction)$40M ($36M + $4M Contingency)
Total Project Budget $49M
Soil Stabilization / Mitigation $3M
Measure W Bond Sale Projects –Round 3
Total Project Budget Bond Sale Other Sources
New Aquatic Center $49M $49M
Colma Creek Bridge Replacement $3M $1.5M $1.5M
All-Abilities Playground Replacement $6M $2.2M $3.8M
Orange Memorial Park Sports Fields $14M $12.3M $1.7M
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PROJECT BUDGET
Soft Costs (design, permits, fees)$9M
Hard Costs (construction)$40M ($36M + $4M Contingency)
Total Project Budget $49M
Soil Stabilization / Mitigation $3M
Measure W Bond Sale Projects –Round 3
Total Project Budget Bond Sale Other Sources
New Aquatic Center $49M $49M
Colma Creek Bridge Replacement $3M $1.5M $1.5M
All-Abilities Playground Replacement $6M $2.2M $3.8M
Orange Memorial Park Sports Fields $14M $12.3M $1.7M
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SCHEMATIC DESIGN
•Indoor Pool: 7 lap lanes and beach entry
(25-yard)
•Outdoor Pool: 10 lap lanes with Wind Screen
(25-yard x 25-meter)
•Activity Room & Swim Lounge
•Indoor and Outdoor Locker Rooms
•Two Family Changing Rooms
•Entry Plaza
•All-Electric Facility
•CAL Green Standards
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SCHEMATIC DESIGN
517
518
519
520
521
522
523
524
BASE DESIGN
ALL ELECTRIC FACILITY
NO ON-SITE RENEWABLE ENERGY
Included in Base Project Budget
OPTION 1
TRADITIONAL PHOTOVOLTAIC
Estimated Additional Cost
$0
(Peninsula Clean Energy)
OPTION 2
PHOTOVOLTAIC + SOLAR THERMAL
Estimated Additional Cost
$1.6M
ALL-ELECTRIC STUDY
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SCHEDULE
City Council Meeting Schematic Design Update February 2023
Design Review Board Presentation March 2023
Planning Commission April 2023
Park and Recreation Commission –Design Update Spring 2023
City Council Meeting –Design Development Update Spring 2023
Design Documents Complete Summer 2023
Bid/Award/Start Construction Fall 2023
Pool Opening Spring 2025
526
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-21 Agenda Date:2/8/2023
Version:1 Item #:9.
Report regarding a resolution approving the acceptance of specified grant funds from the California Budget Act
of 2022,item 3790-101-0001 as amended by Assembly Bill 179,in an amount of $3,200,000 for the Linden
Park project at 616 and 700 Linden Avenue pursuant to budget amendment #23.043.(Greg Mediati,Director of
Parks and Recreation,Philip Vitale,Deputy Director of Capital Projects,and Christina Fernandez,Deputy
City Manager)
RECOMMENDATION
It is recommended that the City Council adopt a resolution approving the acceptance of grant funding
from the State of California’s Budget Act of 2022 in an amount of $3,200,000 for the Linden Park project
at 616 and 700 Linden Avenue.
BACKGROUND/DISCUSSION
The City intends to purchase two parcels,616 and 700 Linden Avenue,totaling nearly one acre of land to
develop the new Linden Avenue Park.The site of the proposed park is located within an existing residential
neighborhood in the Old Town area.One parcel is currently an unprogrammed green space while the other is a
parking lot.The City is currently negotiating with the San Mateo Countywide Oversight Board to complete the
purchase of the parcels from the Successor Agency to the Former Redevelopment Agency in order to begin
construction of this community amenity.
In early 2022,City staff submitted grant requests to State Senator Becker’s office and then-Assemblymember
Mullin’s office for funding consideration in the State of California’s 2022 budget,including a $3,200,000
request for funding for park improvements on these two parcels.
In August 2022,staff learned that Assemblymember Mullin’s office had successfully lobbied for the inclusion
of a $3,200,000 grant to the City of South San Francisco to fund these improvements.The budget,California
Assembly Bill 179,was approved by the State of California legislature on August 31,2022 and signed by
Governor Gavin Newsom on September 9, 2022.
Funding was requested to transform two adjacent lots on Linden Avenue into a vibrant neighborhood park and
cultural plaza for the community to enjoy.Situated in the historical Old Town neighborhood,this is a highly
visible public site due to its centralized location and cultural significance.This densely populated area is
considered one of South San Francisco’s most socio-economically diverse communities.
The Old Town neighborhood has been identified in the 2015 Parks and Recreation Master Plan and 2022
General Plan as an area of concern for its lack of parks and open space.To address this need,the 616 and 700
Linden Avenue parcels were identified in these plans as future park locations.
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File #:23-21 Agenda Date:2/8/2023
Version:1 Item #:9.
Additionally,in July 2022,the City was tentatively awarded Land and Water Conservation Fund grant funding
in the amount of $830,000 for acquisition of the two parcels,pending approval by the United States National
Parks Service. Final award of this grant should be confirmed this spring.
Design of the park does require significant public outreach to define the site program and amenities desired by
community members,however,as currently envisioned,it would include a children’s play area,public
artworks,high-speed internet,a multi-purpose sports court,and lawn and hardscape areas for fitness activities,
picnics,and other community gatherings.Some environmental cleanup is required for the 616 Linden Avenue
property,which will be completed before construction.Community outreach and design is expected to begin
later this year.
FISCAL IMPACT
Acceptance of $3,200,000 in grant funding has no impact to the General Fund.
RELATIONSHIP TO STRATEGIC PLAN
This item before the City Council supports the City’s Quality of Life strategic goal by providing additional
funding for improved park amenities for residents.
CONCLUSION
It is recommended that the City Council adopt a resolution approving the acceptance of grant funding from the
State of California’s Budget Act of 2022 in an amount of $3,200,000 for the Linden Park project at 616 and 700
Linden Avenue and approve budget amendment #23.043
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2022-23
Procedural Guide
for
Local Assistance Specified Grants – Capital
September 2022
State of California
The Natural Resources Agency
Department of Parks and Recreation
Office of Grants and Local Services (OGALS)
“Creating Community through People, Parks, and Programs”
Send Application and correspondence to your
Administrative Project Officer listed at: www.parks.ca.gov/grants/contacts
Mailing Address:
State of California
Dept. of Parks and Recreation
P.O. Box 942896
Floor 13
Sacramento, CA 94296-0001
Attn: Office of Grants and Local Services
www.parks.ca.gov/grants
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GRANTEE SPECIFIED GRANT PROCEDURAL GUIDE - CAPITAL
STATE OF CALIFORNIA
DEPARTMENT OF PARKS AND RECREATION
Department Mission
The mission of the California Department of Parks and Recreation is to provide for the
health, inspiration, and education of the people of California by helping to preserve the
state’s extraordinary biological diversity, protecting its most valued natural and cultural
resources, and creating opportunities for high-quality outdoor recreation.
Office of Community Engagement Mission
The mission of the Community Engagement Division is to encourage healthy communities by
connecting people to parks, supporting innovative recreational opportunities, embracing
diversity, fostering inclusivity, and delivering superior customer leadership through quality
customer services.
The Office of Grants and Local Services (OGALS) Mission Statement
The mission of the Office of Grants and Local Services is to address California’s diverse
recreational, cultural and historical resource needs by developing grant programs,
administering funds, offering technical assistance, building partnerships and providing
leadership through quality customer service.
OGALS VISION GOALS
To Be:
A leader among park and recreation professionals.
Proactive in anticipating public park and recreation needs and how new legislation
and grant programs could best meet these needs.
Honest, knowledgeable, and experienced grant administration facilitators.
Sensitive to local concerns while mindful of prevailing laws, rules, and regulations.
Perceptive to opportunities for partnerships, growth and renewal where few existed
before.
Committed to providing quality customer service in every interaction and
transaction.
Responsive to the needs of applicants, GRANTEES, nonprofit organizations, local
governments, legislative members, and department employees.
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TABLE OF CONTENTS
I.INTRODUCTION ....................................................................................................... 4
II.GRANT PROCESS ................................................................................................... 4
Resolution Form......................................................................................................... 7
III.APPLICATION SECTION .......................................................................................... 8
APPLICATION PACKET checklist and directions.............................................................. 8
Additional Non-Profit Requirements ......................................................................... 10
Project Application Form .......................................................................................... 11
PROJECT SCOPE/Cost Estimate Form ........................................................................ 12
Funding Sources Form ............................................................................................ 13
CEQA Compliance Certification Form ...................................................................... 14
Development Project Eligible Costs and Rules ........................................................ 15
Acquisition Projects .................................................................................................. 17
IV.CONTRACT SECTION ............................................................................................ 19
Grant Contract ......................................................................................................... 19
Status Report ........................................................................................................... 27
V.GRANT PAYMENT SECTION ................................................................................ 28
Payment Request Form ........................................................................................... 33
Grant Expenditure Form .......................................................................................... 35
Project Completion Packet ....................................................................................... 31
PROJECT COMPLETION Certification ............................................................................ 36
VI.ACCOUNTING AND AUDIT SECTION ................................................................... 37
Accounting Requirements ........................................................................................ 37
State Audit ............................................................................................................... 37
Audit Checklist ......................................................................................................... 38
VII.DEFINITIONS .......................................................................................................... 39
Words and terms shown in SMALL CAPS in this procedural guide are defined
beginning on page 39.
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4
I. Introduction
This specified grant originated from a line item in the State of California Budget for fiscal
year 2022-23. A resolution is required before a CONTRACT will be issued, and an
approved APPLICATION PACKET is required before GRANT payments can be approved. The
GRANT PERFORMANCE PERIOD is July 1, 2022 – June 30, 2026.
1. Costs incurred before or after the GRANT PERFORMANCE PERIOD are not eligible for
reimbursement.
2. Costs incurred after the APPROPRIATION DATE but before OGALS approves the
APPLICATION PACKET are eligible if they are consistent with the GRANT SCOPE
approved by OGALS and are ELIGIBLE COSTS.
II. Grant Process
Grant Process Key Dates
• Grant Performance Period: July 1, 2021 – June 30, 2026
• Resolution: Submit by December 31, 2023
• Contract: Sign and return by January 31, 2024
• Projects Complete by December 31, 2025
• Project Completion Packets: Submit by: January 31, 2026
Grant Process Detail
1. Resolution: APPLICANT sends resolution to OGALS by December 31, 2023, to
allow approval within the CONTRACT ENCUMBRANCE PERIOD, which ends
June 30, 2024.
2. CONTRACT: OGALS sends CONTRACT to APPLICANT. APPLICANT becomes GRANTEE
when CONTRACT is fully executed during CONTRACT ENCUMBRANCE PERIOD.
a. The CONTRACT section includes a sample contract and the contract
provisions.
b. The APPLICANT must return the CONTRACT signed by the AUTHORIZED
REPRESENTATIVE to OGALS no later than January 31, 2024. The APPLICANT
becomes a GRANTEE when the CONTRACT is signed by OGALS.
c. OGALS returns a copy of the fully executed CONTRACT to the GRANTEE.
3. APPLICATION PACKET(s): The GRANTEE defines the SCOPE(s) and amount of grant
funds needed for each PROJECT. As PROJECTS are identified, the GRANTEE
submits individual APPLICATION PACKET(s) to OGALS. OGALS reviews each
APPLICATION PACKET and sends a letter of approval to the GRANTEE or requests
additional information.
After each PROJECT is approved by OGALS, OGALS will send a Status Report to
the GRANTEE approximately every six months until OGALS receives a PROJECT
COMPLETION PACKET. The GRANTEE must return the Status Report within thirty
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5
(30) days from receipt. Payment requests will not be processed if Status
Reports are overdue.
4. Payments and end of GRANT PERFORMANCE PERIOD: GRANTEE requests
payments for ELIGIBLE COSTS. OGALS recommends that GRANTEE provide all
PROJECT COMPLETION PACKET(S) no later than January 31, 2026. The grant
payments section provides payment request instructions and forms.
a. The GRANTEE may request payments after each PROJECT is approved by
OGALS. GRANT funds may only be expended on ELIGIBLE COSTS incurred within
the GRANT PERFORMANCE PERIOD.
b. The GRANTEE completes PROJECT SCOPE(s) and sends PROJECT COMPLETION
PACKET(s) to OGALS no later than January 31, 2026.
c. The State of California receives a high volume of payment requests at the
end of the fiscal year. If the PROJECT COMPLETION PACKET is received after
January 31, 2026, OGALS cannot guarantee final payment by the State
Controller’s Office. If the State Controller’s Office is unable to process the
payment before the end of the GRANT PERFORMANCE PERIOD, the unpaid
balance of grant funds will revert to the Legislature.
d. OGALS processes the final payment request after each PROJECT is complete
as documented by the GRANTEE in the PROJECT COMPLETION PACKET, and as
verified by OGALS when conducting a site inspection.
5. Accounting and Audit: DPR’s Audits Office may conduct an audit. The GRANTEE
is required to retain all PROJECT records for five years following receipt of the
final GRANT payment. The Accounting and Audit Section provides directions and
an Audit Checklist for DPR audit and accounting requirements.
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Authorizing Resolution
GRANTEE passes one resolution approving the filing of all applications associated with
the CONTRACT and forwards a copy to OGALS.
The Authorizing Resolution on the following page may be reformatted; however, the
language provided in the resolution must remain unchanged.
The Authorizing Resolution serves two purposes:
1. It is how the GRANTEE’S Governing Body agrees to the terms of the CONTRACT; it
provides confirmation that the GRANTEE has the funding to complete, operate and
maintain PROJECTS associated with the CONTRACT.
2. It designates a position title to represent the Governing Body on all matters
regarding PROJECTS associated with the CONTRACT. The incumbent in this
position is referred to as the AUTHORIZED REPRESENTATIVE.
The AUTHORIZED REPRESENTATIVE can delegate signatory authority to other individuals
(by position title) either in entirety or for particular documents. The delegation process
requires the AUTHORIZED REPRESENTATIVE to submit a letter (on letterhead) or email to
OGALS delegating authority.
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7
Resolution Form
Resolution No: __________________
RESOLUTION OF THE ___________ (Title of Governing Body/City Council, Board of
Supervisors) OF ___________ (City, County, or District) APPROVING
APPLICATION(S) FOR SPECIFIED GRANT FUNDS from Budget Act 2022/23
(Budget line item and language)
WHEREAS, the State Department of Parks and Recreation has been delegated the
responsibility by the Legislature of the State of California for the administration of a
grant to the [grantee name], setting up necessary procedures governing application(s);
and
WHEREAS, said procedures established by the State Department of Parks and
Recreation require the applicant’s Governing Body to certify by resolution the approval
of project application(s) before submission of said applications to the State; and
WHEREAS, the applicant will enter into a contract with the State of California to
complete project(s);
NOW, THEREFORE, BE IT RESOLVED that the ___________ (grantee’s governing
body) hereby:
1. Approves the filing of project application(s) for specified grant project(s); and
2. Certifies that said applicant has or will have available, prior to commencement of
project work utilizing specified grant funds, sufficient funds, including those
provided by this grant, to complete the project; and
3. Certifies that the applicant has or will provide sufficient funds to operate and
maintain the project(s); and
4. Certifies that the applicant has reviewed, understands, and agrees to the
Provisions contained in the contract in this Procedural Guide; and
5. Delegates the authority to the ___________ (designated position, not name of
person occupying position), or designee to conduct all negotiations, sign and
submit all documents, including, but not limited to applications, agreements,
amendments, and payment requests, which may be necessary for the completion
of the project scope(s); and
6. Agrees to comply with all applicable federal, state and local laws, ordinances,
rules, regulations and guidelines.
Approved and adopted the _____day of ______________, 20_______.
I, the undersigned, hereby certify that the foregoing Resolution Number_____ was duly
adopted by the ___________ (grantee’s governing body) following a roll call vote:
Ayes:
Noes:
Absent: __________________________
(Clerk)
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III. APPLICATION SECTION
• GRANTEE may submit multiple APPLICATION PACKETS to OGALS.
• Provide the APPLICATION PACKET items in the order shown in the following
checklist.
• Please number the pages.
• If a checklist item is not applicable to the PROJECT, provide a brief explanation.
• If an application item is incomplete send a draft with a timeline for completion.
Application packet checklist and directions
GRANTEES must complete the checklist below and submit it with the APPLICATION PACKET.
An APPLICATION PACKET is not complete unless all items on the checklist are submitted.
Each PROJECT requires its own APPLICATION PACKET. Check if included Check if not applicable
Application Item
Procedural
Guide
Page #
Check when
signed by
AUTHORIZED
REPRESENTATIVE
Application
Packet
Page #
Application Packet Checklist
Digital file name: checklist.pdf Pg. 8 Pg._____
Application
Digital file name: application.pdf Pg. 11 Pg._____
Project Scope/Cost Estimate
Digital file name: costestimate.pdf Pg. 12 Pg._____
Funding Sources Form
Digital file name: fundingsources.pdf Pg. 13
CEQA Compliance Certification
Digital file name: ceqa.pdf Pg. 14 Pg._____
Acquisition Requirements
Digital file names: acqscope.pdf & acqdocs.pdf Pg. 17 Pg._____
Land Tenure documentation
Digital file names: ownership.pdf or
nonownership.pdf
Pg. 9 Pg._____
Sub-Leases or Agreements
Digital file name: otheragreements.pdf Pg. 9 Pg._____
Site Plan
Digital file name: siteplan.pdf Pg. 9 Pg._____
PROJECT Location Map
Digital file name: map.pdf Pg. 9 Pg. _____
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Site Plan
• Provide a drawing showing where each feature and support amenity listed in the
Project Scope/Cost Estimate Form will be located.
• Include the function and approximate square footage of each room within
buildings that are part of the project SCOPE, and the approximate total square
footage of the buildings.
Land Tenure and Site Control
If the property is owned in fee simple by the APPLICANT, provide one of the following:
• Deed or deed recordation number
• Title report
• Tract map (if owner’s name provided)
If the property is not owned in fee simple, provide the lease, easement, joint powers
agreement, etc.
Sub-leases or Agreements
Provide a list of all other leases, agreements, memoranda of understanding, etc.,
affecting PROJECT property or its operation and maintenance, or
California Environmental Quality Act (CEQA)
The APPLICANT should check with its local city or county planning agency for CEQA
compliance information.
• If CEQA is complete: provide the CEQA Compliance Certification Form and its
required attachment, filed and stamped by the County Recorder.
• If CEQA is not complete: provide a timeline for completion and state “completing
CEQA is a Project Scope Item.”
PROJECT Location Map
Provide a map showing highway and street access to the PROJECT site.
537
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Additional Non-Profit Requirements
Fidelity Bond (For Non-profit grantees only)
Non-profit GRANTEES must provide a copy of a current Fidelity Bond policy to their
PROJECT OFFICERS before OGALS will approve any payment requests. The premium for a
Fidelity Bond is an eligible cost.
A Fidelity Bond provides insurance covering fraudulent acts of GRANTEES’ employees,
volunteers, officers, and directors. The GRANTEE is the insured party. DPR must be
named as a Third-Party Loss Payee. OGALS address is State of California, Dept. of
Parks and Recreation, P.O. Box 942896, Floor 13, Sacramento, CA 94296-0001, Attn:
Office of Grants and Local Services.
Coverage must be at least equal to the GRANT amount. Fidelity Bond insurance must be
kept current for at least six months after the date of the final GRANT payment.
GRANTEES may obtain the Fidelity Bond through a general liability carrier, a major
casualty insurance carrier, or a bonds specialty company. There are Fidelity Bond
frequently asked questions available on the OGALS web site.
Competitive Solicitation Process (For non-profit grantees only)
1. Non-profit GRANTEE must attempt to obtain three bids for services greater than
$5,000 and for construction work greater than $25,000.
2. To ensure bidders understand the required PROJECT elements, the non-profit
GRANTEE provides each bidder (potential contractor) the same written invitation for
bid describing the PROJECT work to be performed based on “Best Value” factors, and
the required PROJECT elements based on the Project Scope/Cost Estimate Form,
and concept level site plan.
3. Solicit bids by contacting at least three potential contractors or by invitation for bids
advertising, or a combination of both methods.
The non-profit GRANTEE’s Board of Directors evaluates the bids to determine which
contractor will provide the “best value” and will meet PROJECT requirements. “Best
value” should be determined by price, quality of materials, equipment, and
workmanship. The evaluation process must ensure no conflict of interest between
the contractor and the non-profit GRANTEE’s Board of Directors. The non-profit
GRANTEE’s Board of Directors need not necessarily accept the lowest bid, but a
reasonable justification for the decision should be recorded in writing.
4. The Board of Directors selects a contractor and awards a contract.
5. For audit purposes, the GRANTEE keeps records of Steps 1 – 4 above.
Competitive Solicitation Requirement
The non-profit GRANTEE may request a waiver of the competitive solicitation process
requirement. To request a waiver, the GRANTEE must send a written request to the
PROJECT OFFICER assigned to the GRANT PROJECT and explain why a waiver is required.
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11
State of California – The Resources Agency
DEPARTMENT OF PARKS AND RECREATION
Project Application Form
PROJECT NAME REQUESTED GRANT AMOUNT
$
PROJECT SITE NAME and PHYSICAL ADDRESS where
PROJECT is located (including zip code)
(Use latitude and longitude if there is no street address)
LAND TENURE ( all that apply)
Owned in fee simple by APPLICANT
Available (or will be available) under
a _________year lease or easement
NEAREST CROSS STREET
COUNTY OF PROJECT LOCATION
APPLICANT NAME AND MAILING ADDRESS
AUTHORIZED REPRESENTATIVE AS SHOWN IN RESOLUTION
___________________________________________________________________________________
Name (typed or printed) and Title Email address Phone
GRANT CONTACT - For administration of grant (if different from AUTHORIZED REPRESENTATIVE)
___________________________________________________________________________________
Name (typed or printed) and Title Email address Phone
GRANT SCOPE: I represent and warrant that this APPLICATION PACKET describes the intended use of the
requested GRANT to complete the items listed in the attached Project Scope/Cost Estimate Form. I declare
under penalty of perjury, under the laws of the State of California, that the information contained in this
APPLICATION PACKET, including required attachments, is accurate.
____________________
Signature of AUTHORIZED REPRESENTATIVE as shown in Resolution Date
Print Name
Title
539
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Project Scope/Cost Estimate Form
GRANTEE: PROJECT Name:
Grant Scope (Describe the project in 30 words or less):
GRANT SCOPE ITEMS
ACQUISITION: List each parcel number, acreage, estimated date of purchase
and cost.
DEVELOPMENT: List each major project element and major support amenity.
Estimated Cost
$
$
$
$
$
$
$
$
$
$
$
$ Total GRANT amount: $
AUTHORIZED REPRESENTATIVE Signature Date
Print Name and Title
The APPLICANT understands that this form will be used to establish ELIGIBLE COSTS, and that all of
the items listed on this form must be completed before the final PROJECT payment is processed as
specified in the Final Payments section of this guide.
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State of California – The Natural Resources Agency
DEPARTMENT OF PARKS AND RECREATION Funding Sources
Grantee Name:_______________________________________
Project Name:________________________________________
PROJECTs funded by the program are not complete until all SCOPE items are complete
and open to the public.
If Specified GRANT funds will be used as part of the funding for a larger project, briefly
describe the scope of that larger project:
The total cost of the larger project that these GRANT funds will contribute to is
$____________
Anticipated completion date: _________________
List all funds that will be used:
Funding source Date Committed Amount
State of California 2022-23 Budget Act July 1, 2022 $
I represent and warrant that I have fully authority to execute this Funding Sources Form
on behalf of the GRANTEE. I declare under penalty of perjury, under the laws of the State
of California, that this Funding Sources Form, and any accompanying documents, for
the above-mentioned grant is true and correct to the best of my knowledge.
AUTHORIZED REPRESENTATIVE Signature Date
Print Name and Title
NOTE: Submit a revised Funding Sources Form should funding sources be modified.
541
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State of California – The Resources Agency
DEPARTMENT OF PARKS AND RECREATION
CEQA Compliance Certification Form
GRANTEE:
Project Name:
Project Address:
Is CEQA complete? Yes No Is completing CEQA a PROJECT SCOPE item? Yes No
What document was filed, or is expected to be filed for this project’s CEQA analysis:
__________________________________
Date complete/expected to be completed: ___________________
Notice of Exemption (attach recorded copy if filed)
Notice of Determination (attach recorded copy if filed)
Other:
If CEQA is complete, and a Notice of Exemption or Notice of Determination was not filed, attach
a letter from the Lead Agency explaining why, certifying the project has complied with CEQA
and noting the date that the project was approved by the Lead Agency.
Lead Agency Contact Information
Agency Name:
Contact Person:
Mailing Address:
Phone: ( ) Email:
Certification:
I hereby certify that the above referenced Lead Agency has complied or will comply with the
California Environmental Quality Act (CEQA) and that the project is described in adequate and
sufficient detail to allow the project’s construction or acquisition.
I further certify that the CEQA analysis for this project encompasses all aspects of the work to
be completed with grant funds.
AUTHORIZED REPRESENTATIVE Signature Date
Print Name and Title
FOR OGALS USE ONLY
CEQA Document Date Received PO Initials
NOE NOD
542
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Development Projects
Development Project Rules
1. Contracted work must comply with the provisions of §1771.5 of the State Labor Code.
2. GRANTEE must have adequate liability insurance, performance bond, or other security
necessary to protect the State and GRANTEE’S interest against poor workmanship,
fraud, or other potential loss associated with the completion of the PROJECT.
3. PROJECTS must be accessible, including an accessible path of travel to the PROJECT.
Eligible Development Costs
All costs must be incurred within the GRANT PERFORMANCE PERIOD. Costs listed below are
examples of eligible costs, and not inclusive. Contact OGALS if you have any questions
regarding a PROJECT cost.
Eligible Pre-construction Costs – incurred prior to groundbreaking as determined
by the GRANTEE
• Public meetings, focus groups, design workshops
• Plans, specifications, construction documents, and cost estimates
• Permits
• CEQA and/or environmental review
• Bid preparation and packages
• IN-HOUSE EMPLOYEE SERVICES prior to groundbreaking
• GRANT/PROJECT administration and accounting prior to groundbreaking
Eligible Construction Costs – up to 100% of the PROJECT costs; incurred after
groundbreaking
• Construction – necessary labor and construction activities to complete the PROJECT,
including site preparation (demolition, clearing and grubbing, excavation, grading),
onsite implementation and construction supervision
• Equipment – Equipment use charges (rental and in-house) must be made in
accordance with GRANTEE’S normal accounting practices
• Premiums on hazard and liability insurance to cover personnel or property
• Site preparation
• Purchase and installation of equipment: security cameras, lighting, signs, display
boards, sound systems, video equipment, etc.
• Construction management: including site inspections and PROJECT administration
• Miscellaneous: other costs incurred during the construction phase, such as
transporting materials, equipment, or personnel, and communications
• IN-HOUSE EMPLOYEE SERVICES after groundbreaking
• GRANT/PROJECT administration and accounting after groundbreaking
Ineligible Development Costs – Cannot be charged to the grant
• Furniture or equipment not site specific and not necessary for the core function of a
new facility (non-capital outlay)
• Costs incurred before or after the GRANT PERFORMANCE PERIOD
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16
• Indirect costs – overhead business expenses of the GRANTEE’S fixed or ordinary
operating costs (rent, mortgage payments, property taxes, utilities, etc.)
• Food and beverages
• Out-of-state travel
• Fundraising and grant writing
Accounting Rules for In-House Employee Services
GRANTEES must follow these accounting practices for services performed by its
employees to be eligible for reimbursement:
• Maintain time and attendance records as charges are incurred, identifying the
employee through a name or other tracking system, and that employee’s actual
hours worked on the PROJECT.
• Time estimates, including percentages, for work performed on the PROJECT are
not acceptable.
• Time sheets that do not identify the specific employee’s actual hours worked on
the PROJECT are not acceptable.
• Costs of the salaries and wages must be calculated according to the GRANTEE’S
wage and salary scales, and may include benefit costs such as vacation, health
insurance, pension contributions and workers’ compensation.
• Overtime costs may be allowed under the GRANTEE’S established policy,
provided that the regular work time was devoted to the same PROJECT.
• May not include overhead or cost allocation. These are the costs generally
associated with supporting an employee, such as rent, personnel support, IT,
utilities, etc.
• If planning to claim IN-HOUSE EMPLOYEE SERVICES costs, provide a sample
timesheet for OGALS review to confirm these accounting practices are being
followed.
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17
Acquisition Projects and Rules
1. Purchase price cannot exceed the appraised value, even if the GRANTEE is willing to
pay the difference.
2. Land cannot be acquired through eminent domain.
3. GRANTEE must provide Title Insurance.
Acquisition Grant Scope/Cost Estimate
Provide the following information on a document signed by the AUTHORIZED
REPRESENTATIVE:
• A brief description, for example, “Acquisition of approximately (ENTER TOTAL
ACREAGE to be acquired) for the development of [NAME] Park by (ENTER DATE
no later than three years from the date final payment is issued by the SCO).”
• Estimated total costs for land and relocation
• Estimated total costs other than the purchase price and relocation costs, such as
appraisals, escrow fees, title insurance fees, deed restriction recordation costs
Acquisition Documentation
For each parcel to be acquired, submit these documents:
1. An appraisal conducted within the last twelve months
2. A separate letter from an independent third party, AG rated appraiser certified by the
California Office of Real Estate Appraisers stating the appraisal was reviewed, and
was completed using acceptable methods
3. County Assessor’s parcel map, showing parcel number and parcel to be acquired
4. Estimated value of each parcel to be acquired with a description of how that value
was determined (such as the listed price on MLS, in-house estimation, website
evaluation, assessed value)
5. Acreage of each parcel to be acquired
For easement acquisitions, in addition to the requirements above, provide:
6. A copy of the proposed easement guaranteeing the authority to use the property for
the purposes specified in the application.
For relocation costs, in addition to the requirements above, provide: A letter signed by the
AUTHORIZED REPRESENTATIVE, listing the relocation costs for each displaced tenant,
certifying that the relocation amount does not exceed the maximum allowed pursuant to
Government Code §7260-7277.
Eligible Acquisition Costs
• IN-HOUSE EMPLOYEE SERVICES – see accounting rules
• GRANT/PROJECT administration and accounting
• Public meetings/focus groups/design workshop
• Appraisals, escrow fees, surveying, other costs associated with acquisition
• Cost of land
• Surveying and/or lot line adjustments
• CEQA and/or environmental review
545
18
Ineligible Acquisition Costs – Cannot be charged to the grant
• Acquisitions where purchase price is greater than appraised value
• Costs for land acquired through eminent domain or condemnation
• Costs incurred outside the GRANT performance period
• Development costs
546
19
IV. CONTRACT SECTION
The following section contains a sample CONTRACT, CONTRACT provisions, and a sample
status report form.
State of California – The Resources Agency
DEPARTMENT OF PARKS AND RECREATION
Grant Contract
Specified Grants
GRANTEE: Grantee
GRANT PERFORMANCE PERIOD is from July 1, 2022 through June 30, 2026
CONTRACT PERFORMANCE PERIOD is from July 1, 2022 through June 30, 2026
The GRANTEE agrees to the terms and conditions of this Contract, and the State of
California, acting through its Director of Parks and Recreation, pursuant to the State of
California, agrees to fund the total State grant amount indicated below.
The GRANTEE agrees to complete the PROJECT SCOPE(s) as defined in the
PROJECT SCOPE /Cost Estimate Form of the application(s) filed with the State of
California.
Total State grant amount not to exceed $ Grant amount
The General and Special Provisions attached are made a part of and incorporated
into the Contract.
STATE OF CALIFORNIA
DEPARTMENT OF PARKS AND RECREATION
By______________________________________
Date____________________________________
_______________________________________________
GRANTEE
By _________________________________________
(Typed or printed name of Authorized
Representative)
________________________________________
(Signature of AUTHORIZED REPRESENTATIVE)
Title _________________________________________
Date _________________________________________
CERTIFICATION OF FUNDING (FOR STATE USE ONLY)
AMOUNT OF ESTIMATE $ CONTRACT NUMBER FUND
ADJ. INCREASING ENCUMBRANCE $ APPROPRIATION
ADJ. DECREASING ENCUMBRANCE $ ITEM VENDOR NUMBER
UNENCUMBERED BALANCE $ LINE ITEM ALLOTMENT CHAPTER STATUTE FISCAL YEAR
T.B.A. NO. B.R. NO. INDEX
PCA OBJ. EXPEND
I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance.
SIGNATURE OF ACCOUNTING OFFICER
DATE
547
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I. RECITALS
This AGREEMENT is entered into between the California Department of Parks and Recreation
(hereinafter referred to as “GRANTOR,” “DEPARTMENT” or “STATE”) and [Name of grantee]
(hereinafter referred to as “grantee”).
The DEPARTMENT hereby grants to GRANTEE a sum (also referred to as “GRANT MONIES”) not to
exceed $[grant amount], subject to the terms and conditions of this AGREEMENT and the [2022-
2023 California State Budget, AB 178, Chapter 45, Statutes of 2022, as amended by AB 179,
Chapter 249, Section 19.56 Item number – 3790-493-0001] (appropriation chapter and budget item
number hereinafter referred to as “SPECIFIED GRANT”). These funds shall be used for completion
of the GRANT SCOPE(S).
The Grant Performance Period is from July 1, 2022 to June 30, 2026.
II. GENERAL PROVISIONS
A. Definitions
As used in this CONTRACT, the following words shall have the following meanings:
1. The term “APPLICATION” means the individual project APPLICATION packet for a project
pursuant to the enabling legislation and/or grant program PROCEDURAL GUIDE requirements.
2. The term “CONTRACT PERFORMANCE PERIOD” means the duration of time during which this
CONTRACT is in effect.
3. The term “DEPARTMENT” or “STATE” means the California Department of Parks and
Recreation.
4. The term “DEVELOPMENT” means capital improvements to real property by means of, but not
limited to, construction, expansion, and/or renovation, of permanent or fixed features of the
property.
5. The term “GRANTEE” means the party described as the GRANTEE in Section I of this
AGREEMENT.
6. The term “GRANT PERFORMANCE PERIOD” means the period of time during which eligible
costs may be incurred by the GRANTEE and paid for by the DEPARTMENT, as specified in
the fully executed CONTRACT.
7. The term “GRANT PROJECT” means all real estate, leases, subleases, buildings, and other
property acquired or developed with GRANT monies.
8. The term “PROJECT SCOPE” means the items listed in the PROJECT SCOPE/Cost Estimate
Form found in each of the APPLICATIONS submitted pursuant to this grant.
9. The term “PROCEDURAL GUIDE” means the document identified as the “2022-23 Procedural
Guide for Specified Grants.” The PROCEDURAL GUIDE provides the procedures and policies
controlling the administration of the grant.
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21
B. Project Execution
1. Subject to the availability of GRANT MONIES, the STATE hereby grants to the GRANTEE a
sum of money not to exceed the amount stated in Section I of this CONTRACT, in consideration
of, and on condition that, the sum be expended in carrying out the purposes as set forth in the
scope described in the enabling legislation and referenced in the APPLICATION, Section I of
this CONTRACT, and under the terms and conditions set forth in this CONTRACT.
The GRANTEE shall assume any obligation to furnish any additional funds that may be
necessary to complete the GRANT SCOPE(S).
During the CONTRACT PERFORMANCE PERIOD, the GRANTEE agrees to submit any
proposed change or alteration from the original GRANT SCOPE(S) in writing to the STATE for
prior approval. This applies to any and all proposed changes that will occur after STATE has
approved the APPLICATION. Changes in the GRANT SCOPE(S) must first be approved in
writing by the STATE.
2. The GRANTEE shall complete the GRANT SCOPE(S) in accordance with the time of the
Performance Period set forth in Section I of this CONTRACT, and under the terms and
conditions of this contract.
3. The GRANTEE shall comply with the California Environmental Quality Act (Public Resources
Code, Section 21000, et seq., Title 14, California Code of Regulations, Section 15000 et seq.).
4. The GRANTEE shall comply with all applicable current laws and regulations affecting
DEVELOPMENT projects, including, but not limited to, legal requirements for construction
contracts, building codes, health and safety codes, and laws and codes pertaining to individuals
with disabilities, including but not limited to the Americans with Disabilities Act of 1990 (42
U.S.C. §12101 et seq.) and the California Unruh Act (California Civil Code §51 et seq.)
C. Project Costs
1. GRANTEE agrees to abide by the PROCEDURAL GUIDE.
2. GRANTEE acknowledges that STATE may make reasonable changes to its procedures as set
forth in the PROCEDURAL GUIDE. If STATE makes any changes to its procedures and
guidelines, STATE agrees to notify GRANTEE within a reasonable time.
D. Project Administration
1. If GRANT MONIES are advanced for DEVELOPMENT projects, the advanced funds shall be
placed in an interest-bearing account until expended. Interest earned on the advanced funds
shall be used on the project as approved by the STATE. If grant monies are advanced and not
expended, the unused portion of the grant and any interest earned shall be returned to the
STATE within 60 days after project completion or end of the GRANT PERFORMANCE
PERIOD, whichever is earlier.
2. During the GRANT PERFORMANCE PERIOD, the GRANTEE shall submit written project
status reports within 30 calendar days after the STATE has made a specific request. All such
project status reports shall be signed and certified as complete and accurate by the authorized
representative of the GRANTEE. In any event, the GRANTEE shall provide the STATE a report
showing total final project expenditures within 60 days of project completion or the end of the
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GRANT PERFORMANCE PERIOD, whichever is earlier. The GRANT PERFORMANCE
PERIOD is identified in Section I of this CONTRACT.
3. The GRANTEE shall make property or facilities acquired and/or developed pursuant to this
contract available for inspection upon request by the STATE.
E. Project Termination
1. Project Termination refers to the non-completion of a GRANT SCOPE. Any grant funds that
have not been expended by the GRANTEE shall revert to the STATE.
2. The GRANTEE may unilaterally rescind this contract at any time prior to the commencement of
the project. The commencement of the project means the date of the letter notifying GRANTEE
of the award or when the funds are appropriated, whichever is later. After project
commencement, this contract may be rescinded, modified or amended only by mutual
CONTRACT in writing between the GRANTEE and the STATE, unless the provisions of this
contract provide that mutual CONTRACT is not required.
3. Failure by the GRANTEE to comply with the terms of the (a) PROCEDURAL GUIDE, (b) any
legislation applicable to the ACT, (c) this CONTRACT or any other grant contracts, specified or
general, that GRANTEE has entered into with STATE or any other department, agency,
commission or other subdivision of California State government, may be cause for suspension
of all obligations of the STATE unless the STATE determines that such failure was due to no
fault of the GRANTEE. In such case, STATE may reimburse GRANTEE for eligible costs
properly incurred in performance of this CONTRACT despite non-performance of the
GRANTEE. To qualify for such reimbursement, GRANTEE agrees to mitigate its losses to the
best of its ability.
4. Any breach of any term, provision, obligation, or requirement of this CONTRACT by the
GRANTEE shall be a default of this CONTRACT. In the case of any default by GRANTEE,
STATE shall be entitled to all remedies available under law and equity, including but not limited
to: a) Specific Performance; b) Return of all GRANT MONIES; c) Payment to the STATE of the
fair market value of the project property or the actual sales price, whichever is higher; and d)
Payment to the STATE of the costs of enforcement of this CONTRACT, including but not limited
to court and arbitration costs, fees, expenses of litigation, and reasonable attorney fees.
5. The GRANTEE and the STATE agree that if the GRANT SCOPE includes DEVELOPMENT,
final payment may not be made until the work described in the GRANT SCOPE is complete and
the GRANT PROJECT is open to the public.
F. Budget Contingency Clause
If funding for any fiscal year is reduced or deleted by the budget act for purposes of this program,
the STATE shall have the option to either cancel this contract with no liability occurring to the
STATE or offer a contract amendment to GRANTEE to reflect the reduced grant amount. This
Paragraph shall not require the mutual CONTRACT as addressed in Paragraph E, subsection 2 of
this CONTRACT
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23
G. Hold Harmless
1. The GRANTEE shall waive all claims and recourse against the STATE including the right to
contribution for loss or damage to persons or property arising from, growing out of or in any way
connected with or incident to this CONTRACT except claims arising from the concurrent or sole
negligence of the STATE, its officers, agents, and employees.
2. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and
employees against any and all claims, demands, damages, costs, expenses or liability costs
arising out of the ACQUISITION, DEVELOPMENT, construction, operation or maintenance of
the property described as the project which claims, demands or causes of action arise under
California Government Code Section 895.2 or otherwise except for liability arising out of the
concurrent or sole negligence of the STATE, its officers, agents, or employees.
3. The GRANTEE agrees that in the event the STATE is named as codefendant under the
provisions of California Government Code Section 895 et seq., the GRANTEE shall notify the
STATE of such fact and shall represent the STATE in the legal action unless the STATE
undertakes to represent itself as codefendant in such legal action in which event the GRANTEE
agrees to pay the STATE’s litigation costs, expenses, and reasonable attorney fees.
4. The GRANTEE and the STATE agree that in the event of judgment entered against the STATE
and the GRANTEE because of the concurrent negligence of the STATE and the GRANTEE,
their officers, agents, or employees, an apportionment of liability to pay such judgment shall be
made by a court of competent jurisdiction. Neither party shall request a jury apportionment.
5. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and
employees against any and all claims, demands, costs, expenses or liability costs arising out of
legal actions pursuant to items to which the GRANTEE has certified. The GRANTEE
acknowledges that it is solely responsible for compliance with items to which it has certified.
H. Financial Records
1. The GRANTEE shall maintain satisfactory financial accounts, documents, including loan
documents, and all other records for the project and shall make them available to the STATE for
auditing at reasonable times. The GRANTEE also agrees to retain such financial accounts,
documents and records for five years following project termination or final payment.
2. The GRANTEE shall keep such records as the STATE shall prescribe, including records which
fully disclose (a) the disposition of the proceeds of STATE funding assistance, (b) the total cost
of the project in connection with such assistance that is given or used, (c) the amount, source
and nature of that portion of the project cost supplied by other sources, and (d) any other such
records that will facilitate an effective audit.
3. The GRANTEE agrees that the STATE shall have the right to inspect and make copies of any
books, records or reports pertaining to this contract or matters related thereto during regular
office hours. The GRANTEE shall maintain and make available for inspection by the STATE
accurate records of all of its costs, disbursements and receipts with respect to its activities under
this contract, and shall provide copies of all such records to STATE in its certified status reports
upon request by the STATE. Such accounts, documents, and records shall be retained by the
GRANTEE for at least five years following final payment.
4. The GRANTEE shall use a generally accepted accounting system.
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I. Use of Facilities
1. The GRANTEE agrees that the GRANTEE shall operate and maintain and retain full control of
the property acquired or developed with the GRANT MONIES, for the duration of the
CONTRACT PERFORMANCE PERIOD.
2. The GRANTEE agrees that, during the CONTRACT PERFORMANCE PERIOD, the
GRANTEE shall use the property acquired or developed with grant funds under this contract
only for the purposes of this grant and no other use, sale, assignment, transfer, mortgage, or
other disposition or change of the control or use of the property or of any interest in the
property to one not consistent with the grant purpose shall be permitted except as authorized
by the DEPARTMENT and the property shall be replaced with property of equivalent value
and usefulness as determined by the STATE.
3. The property acquired or developed may be transferred or assigned to another entity only if
the successor entity assumes the obligations imposed under this contract and only with the
prior approval of STATE.
4. Any real Property (including any portion of it or any interest in it, including any leases) may
not be used as security or collateral for any debt, loan or mitigation, without the prior written
approval of the STATE, provided that such approval shall not be unreasonably withheld as
long as the purposes for which the grant was awarded are maintained. Any such permission
that is granted does not make STATE a guarantor or a surety for any debt, loan or mitigation,
nor does it waive STATE’s rights to enforce performance under the CONTRACT.
5. All real property (including any portion or interest in it, including any leases), or rights thereto,
acquired with GRANT MONIES shall be subject to an appropriate form of restrictive title,
rights, or covenants approved by the STATE. If the project property is taken by use of
eminent domain, GRANTEE shall reimburse STATE an amount at least equal to the amount
of grant monies received from STATE or the pro-rated full market value of the real property,
including improvements, at the time of sale, whichever is higher.
6. If eminent domain proceedings are initiated against GRANTEE, GRANTEE shall notify
STATE within 10 days of receiving the complaint.
J. Nondiscrimination
1. The GRANTEE shall not discriminate against any person on the basis of race, religious
creed, color, national origin, ancestry, physical disability, mental disability, medical condition,
genetic information, marital status, sex, gender, gender identity, gender expression, age,
sexual orientation, or military and veteran status in the administration and in the use of any
property or facility developed pursuant to this contract.
2. The GRANTEE shall not discriminate against any person on the basis of residence except to
the extent that reasonable differences in admission or other fees may be maintained on the
basis of residence and pursuant to law.
3. All facilities shall be open to members of the public generally, except as noted under the
special provisions of this project contract or under provisions of the enabling legislation and/or
grant program.
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K. Severability
If any provision of this CONTRACT or the application thereof is held invalid, that invalidity shall
not affect other provisions or applications of the CONTRACT which can be given effect without
the invalid provision or application, and to this end the provisions of this CONTRACT are
severable.
L. Liability
1. STATE assumes no responsibility for assuring the safety or standards of construction, site
improvements or programs related to the GRANT SCOPE. The STATE’S rights under this
CONTRACT to review, inspect and approve the GRANT SCOPE and any final plans of
implementation shall not give rise to any warranty or representation that the GRANT SCOPE
and any plans or improvements are free from hazards or defects.
2. GRANTEE shall ensure that any contractor hired has adequate liability insurance,
performance bond, or other security necessary to protect the GRANTEE interest and the
STATE’s interest against poor workmanship, fraud, or other potential loss associated with the
completion of the grant project.
M. Assignability
Without the written consent of the STATE, the GRANTEE’S interest in and control of any portion
of the GRANT PROJECT and responsibilities under this CONTRACT shall not be assignable or
transferable by the GRANTEE either in whole or in part.
N. Use of Grant Monies
GRANTEE shall not use any grant funds (including any portion thereof) for the purpose of
making any leverage loan, pledge, promissory note or similar financial device or transaction,
without: 1) the prior written approval of the STATE; and 2) any financial or legal interests created
by any such leverage loan, pledge, promissory note or similar financial device or transaction in
the project property shall be completely subordinated to this CONTRACT through a
Subordination Agreement provided and approved by the STATE, signed by all parties involved
in the transaction, and recorded in the County Records against the fee title of the project
property.
O. Section Headings
The headings and captions of the various sections of this CONTRACT have been inserted only
for the purpose of convenience and are not a part of this CONTRACT and shall not be deemed
in any manner to modify, explain, or restrict any of the provisions of this CONTRACT
P. Waiver
Any failure by a party to enforce its rights under this CONTRACT, in the event of a breach or
default, shall not be construed as a waiver of said rights; and the waiver of any breach or default
under this CONTRACT shall not be construed as a waiver of any subsequent breach.
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III. SPECIAL PROVISIONS
On March 4, 2022, Governor Gavin Newsom issued Executive Order N-6-22 (the EO) regarding
Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions”
refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine,
as well as any sanctions imposed under state law. The EO directs state agencies to terminate
contracts with, and to refrain from entering any new contracts with, individuals or entities that are
determined to be a target of Economic Sanctions. This Executive order extends to recipients of
any State Grants (Grantee). Grantees include those who have contracted or will contract to
receive State grants funds. Accordingly, should the State determine that a Grantee is a target of
Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or
entities, that shall be grounds for termination of this agreement. The State shall provide the
Grantee advance written notice of such termination, allowing the Grantee at least 30 calendar
days to provide a written response. Termination of any contract found to be in violation of this
Executive Order shall be at the sole discretion of the State.
_____________________________________
GRANTEE
By:__________________________________
Signature of Authorized Representative
Title: _________________________________
Date: _________________________________
STATE OF CALIFORNIA
DEPARTMENT OF PARKS AND RECREATION
By: _________________________________
Date: _________________________________
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Status Report
To monitor progress, every six months OGALS will send Status Reports to GRANTEE to complete for
each PROJECT. GRANTEE must return Status Reports to OGALS within thirty days from receipt. This
requirement continues until OGALS receives GRANT COMPLETION PACKETS. Payment requests will not
be processed if Status Reports are overdue. See the sample Status Report below, which is subject
to change.
Status Report
Grantee:
Project Number:
Project Name:
Advances to date without documentation (attach a Grant Expenditure Form documenting expenditure
of the balance, if applicable):
If a portion of the advanced funds have not been spent, and more than six months have passed since the Grantee
received the advanced funds, the balance must be spent on eligible costs or returned to OGALS within 60 days from
receipt of this form.
Briefly describe completed work funded by the grant since the last Status Report [DATE]:
(Continue on another sheet if needed.)
Pre-Construction/Pre-Acquisition (Planning, CEQA, etc.):
1) ___________________________________________________________________________
___________________________________________________________________________
Acquisition and/or Construction -- and Provide photos showing work completed since [DATE]
2) ___________________________________________________________________________
___________________________________________________________________________
Potential Obstacles Affecting Completion
3) ___________________________________________________________________________
___________________________________________________________________________
4) Total Funds Spent To Date Using This Grant $_____________
5) Percentage of Project Complete:________________
6) Estimated Date of Project Completion: ___________________
7) On Time: Yes / No If not, explain:
8) Within Budget: Yes / No If not, explain:
9) Within Scope: Yes / No If not, explain:
I represent and warrant that I have full authority to execute this Grant Progress Status Report on behalf of the
Grantee. I declare under penalty of perjury, under the laws of the State of California, that this status report,
and any accompanying documents, for the above-mentioned Grant is true and correct to the best of my
knowledge.
__________________________ _______________________ _____________
Authorized Representative* Title Date
(*Certification to above information requires a signature by a person authorized in the resolution)
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V. Grant Payment Section
There are three types of payments:
• Pre-construction and Construction Reimbursement payments
• ADVANCE payments for construction and ACQUISITION ADVANCES into escrow
• Final payments
Payment requests are processed through the State Controller’s Office and are mailed to the
GRANTEE eight to ten weeks from the date the request is approved by OGALS.
OGALS will not approve payment requests that do not meet the requirements described in this
GRANT ADMINISTRATION GUIDE.
OGALS may withhold payment if the GRANTEE has outstanding issues, such as:
• Breach of any other contract with OGALS
• An unresolved audit exception
• An outstanding conversion
• Park sites closed or inadequately maintained
• Overdue Project Status Reports
• Other unmet grant requirements
Payment Rules
• GRANT payments before the final payment may not exceed 80% of the PROJECT amount.
20% of the PROJECT amount is retained for the final payment as a REIMBURSEMENT.
• The GRANTEE should group costs together to avoid frequent payment requests. Payment
requests greater than $10,000 are encouraged.
• Complete CEQA prior to requesting any reimbursement.
• Provide a sample timesheet to the PROJECT OFFICER prior to incurring any IN-HOUSE
EMPLOYEE SERVICES costs, AND if claiming such costs, provide a sample timesheet with
each reimbursement payment request.
• Provide (1) a list of the bidders; (2) the recommendation and/or notice of award made by
the governing board; and (3) the resulting signed contract agreement to the PROJECT
OFFICER PRIOR to requesting reimbursement for costs on contracts requiring a
competitive solicitation or bidding process.
• Provide construction progress photos with all construction payment requests.
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Pre-construction Reimbursement
Payment Type When to Request Document to
Send to PROJECT OFFICER
PRE-CONSTRUCTION
REIMBURSEMENT(s)
After the CONTRACT has
been ENCUMBERED
• Payment Request Form
• Grant Expenditure Form
• Timesheet sample, if applicable
Construction Reimbursement
Advance Payments
ADVANCE payments may be requested for costs the GRANTEE will incur within the next six months.
ADVANCE funds, and any interest earned on those funds, must be spent with six months of receipt, or
returned to OGALS. ADVANCE payments are made at the discretion of OGALS. OGALS considers
ADVANCE payments to be a privilege and reserves the right to disapprove ADVANCE payments.
Pre-construction Advance
Payment
Type
When to Request Documents to
Send to PROJECT OFFICER
PRE-
CONSTRUCTION
ADVANCE(s)
After the GRANT
CONTRACT has been
ENCUMBERED
• Payment Request Form
• ADVANCE justification (see below)
Construction Advance
Payment Type When to Request Documents to
Send to PROJECT OFFICER
ADVANCE(s) up
to 50% of
PROJECT
amount
After the GRANT
CONTRACT has been
ENCUMBERED, and
construction will
commence during
the next six months
• Payment Request Form
• ADVANCE justification (see below)
• Copy of signed construction contract and a
notice to proceed or IN-HOUSE EMPLOYEE
SERVICES labor schedule.
Advance Justification
An ADVANCE justification is required for an ADVANCE. It must provide the following information:
Payment Type When to Request Documents to
Send to PROJECT OFFICER
REIMBURSEMENT of
up to 80% of
PROJECT amount
before final payment
After the CONTRACT is
ENCUMBERED and the
GRANTEE incurred costs
for work related to the
GRANT SCOPE
• Payment Request Form
• Grant Expenditure Form
• Timesheet sample, if applicable
• Construction progress photos
• If payment request includes
reimbursement to contractor/service
providers, Competitive Solicitation
documentation
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• Why an ADVANCE is needed instead of a reimbursement.
• A payment schedule, with a month-by-month estimate, for up to six months, showing the
anticipated amount needed, and to whom the funds will be paid (IN-HOUSE EMPLOYEE or name of
contractor).
• A funding plan, indicating how the GRANTEE intends to fund the percentage of the PROJECT
exceeding the 50% advance limit.
• A statement indicating the GRANTEE will put the funds into a separate, interest-bearing account.
OGALS may not approve the total amount of the requested ADVANCE payment if the requested funds
will not be spent within six months from the date that the payment request is submitted by the
GRANTEE.
Clearing the Advance
ADVANCES must be cleared with six months of receipt. An ADVANCE is cleared by submitting:
• A Grant Expenditure Form documenting expenditures on eligible costs equal to the ADVANCE
amount plus any earned interest.
• Photos of any construction completed with the ADVANCE funds (for construction ADVANCES).
Acquisition Advance
Payment Type When to Request Documents to Send
ADVANCES up to
100% of the
acquisition amount
After the contract is
encumbered and escrow is
open
See following instructions
1. Escrow letter
2. Title report cover page
3. Payment request form
The following items are required to request an ADVANCE payment into escrow:
1. A letter on the GRANTEE’s letterhead, addressing all the following elements, and signed
by the GRANTEE’s AUTHORIZED REPRESENTATIVE:
a) Name, address and telephone number of the title company or escrow holder, and
the escrow account number to which the GRANT funds will be disbursed
b) Copy of the property appraisal and written concurrence
c) GRANT CONTRACT number and amount of GRANT funds requested
d) A statement by the GRANTEE that “the preliminary title report shows that there are
no liens, easements, or any other restrictions that would prevent completion of the
SCOPE and fulfillment of the CONTRACT provisions.”
e) A statement by the GRANTEE that “all funds (exclusive of the GRANT funds to be
provided under this agreement) needed for the completion of the acquisition of the
property or properties have been secured and have been or will be deposited to
escrow on or about the same date as the requested GRANT funds.” The GRANTEE is
entitled to reasonably rely on the representations of the seller.
2. Cover page of the preliminary title report.
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3. Payment Request Form: the “Send Warrant To” item 7 on the Payment Request Form
must be completed using the title company’s or escrow holder’s name, mailing address,
and contact person.
After approval by OGALS, the payment will be mailed by the State Controller’s Office to the
designated escrow company within approximately 30 working days.
Returning Unexpended Advanced Funds or Interest
The balance of unspent GRANT funds must be returned to OGALS no later than thirty days after the end
of the six-month ADVANCE period. OGALS will then return the GRANT funds to the CONTRACT balance.
OGALS cannot return interest to the CONTRACT balance.
If interest was earned on the ADVANCED funds, interest must be spent on ELIGIBLE COSTS, and the
unspent GRANT funds returned to OGALS.
Subsequent Payments
Any outstanding ADVANCE payments must be cleared before any additional reimbursements or
ADVANCE payments will be approved.
This requirement may be waived in cases where a PROJECT requires timely payments to contractors,
and the remaining balance of unspent ADVANCED funds cannot cover the next PROJECT payment.
The following items are required to request a waiver:
1. A letter to the PROJECT OFFICER, signed by the AUTHORIZED REPRESENTATIVE explaining why the
waiver is needed.
2. The majority of ADVANCED funds has been cleared.
3. A payment schedule with month-by-month estimates detailing the anticipated amount needed
including the unspent balance of previously ADVANCED funds, along with the additional
requested reimbursement or ADVANCE.
Final Payments / Project Completion Packets
OGALS recommends all PROJECT COMPLETION PACKETS be submitted by January 31, 2026.
The final payment (20% of the PROJECT amount) will be processed after PROJECT COMPLETION
and the following occurs:
1. Approval of the PROJECT COMPLETION PACKET and additional required
documents in the charts below.
2. Site inspection by the PROJECT OFFICER to verify PROJECT COMPLETION.
Project Completion Packet
To request final payment and complete the PROJECT, the GRANTEE must submit the following
documents:
1. Payment Request Form (pg. 33)
2. Grant Expenditure Form (pg. 35)
3. Final Funding Sources Form (if any changes from original submission) (pg. 13)
4. Project Completion Certification Form (pg. 36)
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5. Completed CEQA, if not already provided (pg. 14)
6. Notice of Completion (optional)2
7. Audit Checklist with items marked that the GRANTEE will retain for five years following receipt
of final payment (pg. 38)
For acquisition PROJECTS, the GRANTEE must submit these additional documents:
1. A copy of the recorded deed to the property
2. A map sufficient to verify the description of the property including parcel numbers and
acreage
3. Copy of title insurance policy
4. Copy of title report
5. Final Escrow Closing Statement
____________________
2 OGALS recommends that the GRANTEE file a “Notice of Completion” with the County Recorder pursuant to State of
California Civil Code §3093. Filing the “Notice of Completion” is not a PROJECT COMPLETION requirement.
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Payment Request Form
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34
Payment Request Form Instructions
• Visit Grant Forms (ca.gov) for current forms
• Type or print legibly all entries
• Round all amounts to the nearest whole dollar
The following instructions correspond to items on the Payment Request Form:
1. PROJECT Number - The number assigned by OGALS to this project
2. CONTRACT Number - As shown in Certification of Funding section of the CONTRACT
3. GRANTEE - GRANTEE name as shown on the CONTRACT
4. PROJECT Title - Name of the PROJECT as shown in the Application
5. Type of Payment – check appropriate box on form:
6. Payment Information
a. GRANT amount
b. Funds received to date - amount paid out from this GRANT
c. Available - (a. minus b.)
d. Amount of this request
e. Remaining funds after this payment - (c. minus d.)
7. Send Warrant To - GRANTEE name, address and contact person
8. Signature of AUTHORIZED REPRESENTATIVE according to the Resolution
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Grant Expenditure Form
PROJECT Number_______________________ GRANTEE NAME __________________________
Warrant/Check # (1)
Date (2)
Recipient (3)
Purpose (4)
Pre-
Construction
Amount (5)
Construction
Amount (6)
_________________________________________________________________________
PRE-CONSTRUCTION Subtotal (5) $_____________
Construction Subtotal (6) $_____________
Grand Total (5) + (6) $_____________
List only ELIGIBLE COSTS charged to the GRANT.
Column (1) Use of electronic payment numbers/electronic funds transfer numbers in the “Warrant/Check
Number” column is acceptable. Please include an “EP” next to the electronic payment
numbers/electronic funds transfer numbers.
If IN-HOUSE EMPLOYEE SERVICES or GRANTEE’S own equipment was used, a work order or other tracking
number can be used instead of a check/warrant number.
Column (2) Date payment was made to recipient. If IN-HOUSE EMPLOYEE SERVICES were used, the date
that the work was performed may be used.
Column (3) Name of Contractor, IN-HOUSE EMPLOYEE SERVES, or other entity performing work.
Column (4) Brief description of cost, such as “design”, “permits”, “construction.” When describing such
costs, such as “design”, state what the design is for, and who prepared it. For items such as “permits”,
state what kind of permit(s). For items such as “construction,” state what type or portion of construction,
or what was constructed. (For instance, “community center”, “walkway”, etc.)
Column (5) PRE-CONSTRUCTION costs.
Column (6) DEVELOPMENT costs eligible for up to 100% of GRANT amount.
Visit Grant Forms (ca.gov) for current forms.
GRANTEES may use their own spreadsheet if it contains the required information shown above.
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Project Completion Certification Form
Grantee: ______________________________________ Project Number: _________________
Grantee contact for audit purposes
Name: __________________________________________________________________________
Address: ________________________________________________________________________
Phone: (_____) __________________ Email: _______________________________________
Project completion – list the features and support amenities (use additional pages, if needed):
List other funds (sources and amounts) used on Project (use additional pages, if needed):
Interest earned on advanced Grant funds: $ ________________
Interest spent on eligible costs: $ ________________
Did the grantee file a “Notice of Completion” with the County Recorder? Yes __ No __
Certification:
I hereby certify that all Grant funds were expended on the above-named Project and that the Project is
complete and we have made final payment for all work done.
I have read California Penal Code §118 and understand that every person who testifies, declares, deposes,
or certifies under penalty of perjury and willfully states as true any material matter which he or she knows to
be false, is guilty of perjury, which is a felony punishable by imprisonment in state prison for two, three, or four
years.
Furthermore, I have read California Penal Code §72 and understand that every person who, with the intent to
defraud, presents for allowance or for payment to any state board or officer, or to any county, city, or District
board or officer, authorized to allow or pay the same if genuine, any false or fraudulent claim, bill, account,
voucher, or writing, is guilty of a felony-misdemeanor punishable either by imprisonment in county jail for a
period of not more than one year, by a fine not exceeding one thousand dollars, or both, or by imprisonment
in state prison, by a fine not exceeding ten thousand dollars, or both.
I represent and warrant that I have full authority to execute this Project Completion Certification on behalf of
the Grantee. I declare under penalty of perjury that the foregoing certification of Project Completion for the
above-mentioned Grant is true and correct.
__________________________________________ ______________________________
Grantee’s Authorized Representative Title
(Printed or Typed name)
__________________________________________ ______________________________
Grantee’s Authorized Representative (Signature) Date
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VI. ACCOUNTING AND AUDIT SECTION
Contact the DPR Audits Office for questions about the following requirements.
Accounting Requirements
GRANTEES must use accounting practices that:
• Provide accounting data that clearly records costs incurred on the PROJECT and accurately
reflects fiscal transactions, with the necessary controls and safeguards.
• Provide good audit trails, especially the source documents (purchase orders, receipts,
progress payments, invoices, timecards, cancelled warrants, warrant numbers, etc.) specific
to the PROJECT.
Accounting Rules for Employee Services (IN-HOUSE EMPLOYEE SERVICES)
GRANTEES must follow these accounting practices for employee services:
• Maintain time and attendance records as charges are incurred, identifying the employee through
a name or other tracking system, and that employee’s actual time spent on the PROJECT.
• Time estimates for work performed on the PROJECT are not acceptable.
• Time sheets that do not identify the specific employee’s time spent on the PROJECT are not
acceptable.
• Costs of the salaries and wages must be calculated according to the GRANTEE’S wage and salary
scales, and may include benefit costs such as “workers’ compensation.”
• Overtime costs may be allowed under the GRANTEE’S established policy, provided that the regular
work time was devoted to the same PROJECT.
State Audit
Grants are subject to audit by DPR (see Audit Checklist). All PROJECT records must be retained for
five years after final payment was received.
The GRANTEE must provide the following when an audit date and time has been confirmed by DPR:
• All PROJECT records, including the source documents and cancelled warrants, books, papers,
accounts, time sheets, or other records listed in the Audit Checklist or requested by the DPR.
• An employee having knowledge of the PROJECT and its records to assist DPR’s auditor.
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Audit Checklist
An audit of the project may be performed before or following project completion. The GRANTEE must retain and make
available all project related records for five years following project termination or final payment of grant funds. Listed
below are some of the items the auditor will examine during the review of your records as applicable. It is the
responsibility of the GRANTEE to have these records available in a central location ready for review once an audit date
and time has been confirmed. If you have any questions regarding these documents, you may contact the State
Department of Parks and Recreation Audits Office.
CONTRACTS
Summary list of bidders (including individual bid
packages)
Recommendation by reviewer of bids
Awarding by governing body (minutes of the
meeting/resolution)
Construction contract agreement
CONTRACT bonds (bid, performance, payment)
CONTRACT change orders
Contractor's progress billings
Payments to contractor (cancelled checks/warrants,
bank statements and EFT receipts**)
Stop Notices (filed by sub-contractors and release if
applicable)
Liquidated damages (claimed against the contractor)
Notice of completion (recorded)
IN-HOUSE EMPLOYEE SERVICES*
Authorization/work order identifying project
Daily time sheets signed by employee and supervisor
Hourly rate (salary schedules/payroll register)
Fringe benefits (provide breakdown)
IN-HOUSE EQUIPMENT*
Authorization/work order
Daily time records identifying the project site
Hourly rate related backup documents
MINOR CONTRACTS/MATERIALS/SERVICES/EQUIPMENT
RENTALS
Purchase orders/Contracts/Service Agreements
Invoices
Payments (actual cancelled checks/warrants, bank
statements and EFT receipts **)
ACQUISITION
Appraisal Report
Did the owner accompany the appraiser?
10 year history
Statement of just compensation (signed by seller)
Statement of difference (if purchased above
appraisal)
Waiver of just compensation (if purchased below
appraisal: signed by seller)
Final Escrow Closing Statement
Cancelled checks/warrants, bank statements and EFT
receipts, [payment(s) to seller(s)]
GRANT deed (vested to the participant) or final order of
condemnation
Title insurance policy (issued to participant)
Relocation documents
Income (rental, grazing, sale of improvements, etc.)
INTEREST
Schedule of interest earned on State funds advanced
Note: Interest on grant ADVANCES is accountable,
even if commingled in a pooled fund account and/or
interest was never allocated back to the grant fund.
AGREEMENT/CONTRACTS
Leases, agreements, etc., pertaining to
developed/acquired property
* Estimated time expended on the projects is not acceptable. Actual time records and all supporting
documentation must be maintained as charges are incurred and made available for verification at the time
of audit.
** Front and back if copied.
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VII. DEFINITIONS
Capitalized words and terms used in this process guide are defined below.
ADVANCE – payment made to the GRANTEE for work that will occur in the future or
work that has already occurred during the GRANT PERFORMANCE PERIOD and has
not been paid for by the GRANTEE.
APPLICANT – an entity which does not yet have a fully-executed CONTRACT with DPR and
is identified as a GRANT recipient through a legislatively specified budget line item.
APPLICATION PACKET – the Application form and its required attachments described in
the Application Checklist and Directions.
APPROPRIATION DATE – July 1 of the State of California fiscal year when the
funding of State budget line items is approved by the legislature. The
APPROPRIATION DATE is the start of the GRANT PERFORMANCE PERIOD.
AUTHORIZED REPRESENTATIVE – the APPLICANT’S/ GRANTEE’S designated position
authorized in the Resolution to sign all required GRANT documents.
CEQA – the California Environmental Quality Act as stated in the Public Resources Code
§21000 et seq.; Title 14 California Code of Regulations §15000 et seq. CEQA is a law
establishing policies and procedures that require entities to identify, disclose to decision
makers and the public, and attempt to lessen significant impacts to environmental and
historical resources that may occur as a result of the entities’ proposed PROJECT. For
more information refer to https://opr.ca.gov/ceqa/
CONSTRUCTION COSTS – costs incurred starting with the date when ground-breaking
construction activities such as site preparation, grading, or gutting begins, and
continuing to the end of the GRANT PERFORMANCE PERIOD.
CONTRACT – an agreement between the DPR and the GRANTEE specifying the
performance of the GRANT SCOPE within the GRANT PERFORMANCE PERIOD, payment of
funds by DPR, and requirements for maintenance and use of the PROJECT.
CONTRACT ENCUMBRANCE PERIOD – the time starting with the APPROPRIATION DATE, when
a CONTRACT must be fully executed between the GRANTEE and DPR to encumber the
GRANT funds.
CONTRACT PERFORMANCE PERIOD – the period during which the grantee has obligations
under the contract.
DEVELOPMENT – construction, installation, replacement, expansion, or renovation.
DPR – the California Department of Parks and Recreation.
ELIGIBLE COSTS – expenses incurred during the grant performance period to complete
the SCOPE approved by OGALS through an encumbered contract.
GRANT – funds made available to a GRANTEE for completion of the PROJECT SCOPE(s)
during the GRANT PERFORMANCE PERIOD.
GRANTEE – an entity having a fully executed CONTRACT with DPR.
GRANT PERFORMANCE PERIOD – period of time that ELIGIBLE COSTS may be incurred by the
GRANTEE and paid for by DPR, as specified in the fully executed CONTRACT.
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IN-HOUSE EMPLOYEE SERVICES – use of the GRANTEE’s employees working on the SCOPE.
OGALS – DPR’s Office of Grants and Local Services.
PRE-CONSTRUCTION COSTS – costs incurred during the planning, design, and permit
phase of the PROJECT before construction can begin.
PROJECT – the recreation features and support amenities listed in the Project
SCOPE/Cost Estimate Form.
PROJECT COMPLETION – when the features and support amenities listed in the Project
SCOPE/Cost Estimate Form are complete and the facilities are open and useable by the
public.
PROJECT COMPLETION PACKET – The documents required in order to request final
payment following PROJECT COMPLETION
PROJECT OFFICER – an OGALS employee, who acts as a liaison with the applicants and
GRANTEES, administers GRANT funds, and facilitates compliance with the Procedural
Guide and CONTRACT.
SCOPE – the features and support amenities listed in the Project SCOPE/Cost Estimate
Form that must be completed prior to final GRANT payment.
568
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-22 Agenda Date:2/8/2023
Version:1 Item #:9a.
Resolution authorizing the acceptance of specified grant funds from the Budget Act of 2022,item 3790-101-
0001 as amended by Assembly Bill 179,Section 19.56 item#(b)(1)(AK)in an amount of $3,200,000 for the
Linden Avenue Park project pursuant to budget amendment #23.043.
WHEREAS, the City intends to develop two parcels, 616 and 700 Linden Avenue, totaling nearly one acre for
the new Linden Avenue Park; and
WHEREAS, in early 2022, City staff submitted a $3,200,0000 specified grant funding request to the State of
California for funding consideration in the 2022 budget to fund park improvements on these two parcels; and
WHEREAS, this grant request was included in the Budget Act of 2022 signed by Governor Newsom on
September 9, 2022; and
WHEREAS, the State Department of Parks and Recreation has been delegated the responsibility by the
Legislature of the State of California for the administration of a grant to the City of South San Francisco,
setting up necessary procedures governing application(s); and
WHEREAS, said procedures established by the State Department of Parks and Recreation require the
applicant’s Governing Body to certify by resolution the approval of project application(s) before submission of
said applications to the State; and
WHEREAS, the applicant will enter into a contract with the State of California to complete project(s);
NOW, THEREFORE, BE IT RESOLVED that the City of South San Francisco City Council hereby:
1.Approves the filing of project application(s) for specified grant project(s); and
2.Certifies that said applicant has or will have available, prior to commencement of project work utilizing
specified grant funds, sufficient funds, including those provided by this grant, to complete the
project; and
3.Certifies that the applicant has or will provide sufficient funds to operate and maintain the project(s);
and
4.Certifies that the applicant has reviewed, understands, and agrees to the Provisions contained in the
contract in the Procedural Guide, included as Exhibit A; and
5.Delegates the authority to the City Manager, or designee to conduct all negotiations, sign and submit all
documents, including, but not limited to applications, agreements, amendments, and payment
requests, which may be necessary for the completion of the project scope(s); and
6.Agrees to comply with all applicable federal, state, and local laws, ordinances, rules, regulations and
guidelines.
*****
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-62 Agenda Date:2/8/2023
Version:1 Item #:10.
Report regarding a recommendation to authorize the submittal of two applications for the San Mateo County
Shuttle program funding in a total amount of $1,661,876.25,committing a 25%total matching contribution of
$553,958.75 from South San Francisco Local Measure A funds,in support of the South City Shuttle program.
(Marissa Garren, Management Analyst I)
RECOMMENDATION
Staff recommends that the City Council take the following necessary actions regarding the submittal of
two San Mateo County Shuttle program funding applications in support of the South City Shuttle
program:
1)Adopt a resolution authorizing the submittal of an application for the San Mateo County Shuttle
program funding in an amount of $1,064,400 and committing a 25%matching contribution of
$354,800 from South San Francisco Local Measure A funds,in support of the continuation of the
existing South City Shuttle program; and
2)Adopt a resolution authorizing the submittal of a second application for the San Mateo County
Shuttle program funding in an amount of $597,476.25 and committing a 25%matching
contribution of $199,158.75 from South San Francisco Local Measure A funds,to provide
additional shuttle services in South San Francisco.
BACKGROUND/DISCUSSION
The South City Shuttle has been in operation since November 2014,funded by four rounds of San Mateo
County Transportation Authority (TA)Shuttle Program funds.Staff applied for the TA Shuttle Program funds
for South City Shuttle operations in February of 2014,2016,2018 and 2020;all four applications were
successful.The TA provided the City with $1,437,225 in funding for the current cycle,fiscal year (FY)2020-
2023 and the City provided a 25%match of $475,075 in local Measure A funding,for a total project cost of
$1,912,300.
Since its inception,the South City Shuttle has become a vital service to the South San Francisco community;
providing a critical connection between the regional South San Francisco BART station,SamTrans stops,and
numerous pedestrian generators throughout the City,such as the downtown,recreation centers,libraries,local
shops,parks,and others.The City has two shuttles,running in opposite directions that provide service
throughout the City.The current routes begin and end at the SSF BART station and provide access to Sunshine
Gardens,Hillside Boulevard,Linden Avenue,and Grand Avenue.They also serve the Terrabay Recreation
Center,downtown South San Francisco,both libraries,the Roberta Cerri Teglia Senior Center,Orange
Memorial Park and Pool, Rotary Plaza, the Municipal Services Building, and Kaiser Medical Center.
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File #:23-62 Agenda Date:2/8/2023
Version:1 Item #:10.
The second bus was added to the program in October 2018.Since its addition,the South City Shuttle has served
as a transportation option to an average of 350 riders per day,an increase of approximately 20 passengers per
day since the 2020 funding cycle.The shuttle program averages 16 passengers per hour at an average cost of
$7.16 per passenger.These metrics place the South City Shuttle among the best performing community shuttles
in San Mateo County,exceeding the performance benchmarks of the TA of 10 passengers per hour at $11 per
passenger.
Staff also provided the Shuttle’s General Transit Feed Specification (GTFS)data to the Metropolitan
Transportation Commission’s (MTC)511 Open Data Portal.Sharing this data to the portal allows MTC to share
the Shuttle’s data with private sector disseminators to maximize the number of travelers benefitting from 511
data.Private sector partners include Google,Apple,TomTom,HERE,and INRIX.Similarly,the Open Data
Portal provides several APIs for developers who would like to create applications,widgets,and other tools
using 511 data.
Community Feedback and Shuttle Study
Staff has been working with transportation consultant,Fehr &Peers to proactively address common requests
staff had received from the community and to assess potential service changes including the effects of the new
Civic Campus and Caltrain station.Common requests included the increase of service frequency,improving
travel times,and to expand the shuttle’s service area.To better improve service frequency,travel times of the
current routes, plus connection options, the following tentative changes have been recommended:
1)Elimination of West Orange Avenue stops (currently on both clockwise and counter clockwise routes)-
most ridership on this stretch is received from patrons and staff of the library.With the tentative
completion date for the new Civic Campus scheduled for late 2023,the new library will be relocating to
this facility.There are currently two stops located near this location,plus the additional route will also
stop at this location,if approved.(Note -Staff plans to return the West Orange Avenue stops in a future
funding application once the current West Orange Library has completed its conversion into a childcare
facility).
2)Addition of Caltrain stop - to increase connections to alternate forms of transportation.
New Proposed Route
In response to Council and community feedback and requests for expanded service,staff is submitting a second
application for an additional shuttle route.This conceptual route will operate for a 12-hour period on Mondays
through Fridays from approximately 7 a.m.until 7 p.m.The route will begin and end at the South San
Francisco BART station and travel to or near the Treasure Island RV Park,Winston Manor,Buri Buri,Avalon,
and Westborough neighborhoods and includes access to parks,schools,the Civic Campus,Rotary Plaza,and
provide connections to the current South City Shuttles and SamTrans.
Call for Projects
The TA,in conjunction with the City/County Association of Governments of San Mateo County (C/CAG),
issued a Call for Projects on January 13,2022 for the San Mateo Shuttle Program.The estimated $11 million
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File #:23-62 Agenda Date:2/8/2023
Version:1 Item #:10.
issued a Call for Projects on January 13,2022 for the San Mateo Shuttle Program.The estimated $11 million
program is a combination of City/County Association of Governments of San Mateo County (C/CAG)Local
Transportation Services Program and the San Mateo County Transportation Authority (TA)Measure A sales tax
funds.The funding is available on a competitive basis for a two-year funding cycle:fiscal years 2023-2024 and
2024-2025.To seek funding pursuant to this Call for Projects,TA and C/CAG require a governing board
resolution from the City committing the City to the completion of the South City Shuttle.
The shuttle has proven to be successful and staff recommends requesting funds for the next two funding cycles
for the continuation of the current routes and one additional route.Based off feedback received from
community surveys,staff is recommending minor changes to the current routes to improve frequency.The
current tracking technology and the 511 Open Data Portal has attracted more riders to the shuttle routes and
increased program participation in the last couple years.The program includes new shuttle wraps,additional
route stops,new signs designed and installed,and curb painting to improve safety and enhance sidewalk
connectivity. The costs for these improvements are included in the projected cost.
FISCAL IMPACT
The projected cost of the Free South City Shuttle program over the next two years is $2,215,835.If approved,
new Measure A or C/CAG congestions relief funds will cover 75 percent ($1,661,876.25)of the projected costs.
The proposed city match for the next two years is 25%of the projected costs ($553,958.75).This amounts to
approximately $276,979.38 per year for FY 2023 -2024 and FY 2024 -2025.Staff proposes the matching
funds come from the City’s Local Measure A fund.
RELATIONSHIP TO STRATEGIC PLAN
The Free South City Shuttle program supports Priority Area 2:Quality of Life of the South San Francisco
Strategic Plan by providing access to multi-modal transportation options.
CONCLUSION
City Council’s support of the two (2)applications for the San Mateo County Shuttle program will allow the
City to provide and expand free public transportation options to the South San Francisco community.
Attachments:
1.Presentation slides
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South City Shuttle
Grant Application
City Council Presentation
February 8, 2023
Marissa Garren, Public Works
573
Clockwise Counter Clockwise
15 trips per day 12 trips per day
7:15 a.m. – 7 p.m. service per day 8 a.m. – 6 p.m. service per day
Start and end at SSF BART station
Average 350 riders per day
Services Sunshine Gardens, Hillside Boulevard, Terrabay, Downtown,
Libraries, Roberta CerriTeglia Center, city parks, schools, Rotary
Plaza, MSB, Kaiser Hospital
Quick Facts
574
Shuttle Program Benchmark Targets
Shuttle Type Operating Cost per Passenger Passengers per Service Hour
Commuter $9.00 15
Community $11.00 10
Door-to-Door $22.00 2
FY 2023-24 and FY 2024-25 Shuttle Operation Benchmarks
South City Shuttle – Current Performance Metrics*
Shuttle Type Operating Cost per Passenger Passengers per Service Hour
Community $7.16 16.7
*As of January 24, 2023
575
Proposed Routes
576
Shuttle Program Funding Request
FY 2023-24 & FY 2024-25
TA / C/CAG
Contribution
(75%)
SSF
Contribution
(25%)
Total
Project Cost
$1,064,400 $354,800 $1,419,200
ExistingClockwise and Counter ClockwiseShuttle Routes (funding application 1)
Proposed Western Route (funding application 2)
TA / C/CAG
Contribution
(75%)
SSF
Contribution
(25%)
Total
Project Cost
$597,476.25 $199,158.75 $796,635
Totals TA / C/CAG SSF Total
$1,661,876.25 $553,958.75 $2,215,835
577
Thank you!
578
City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-63 Agenda Date:2/8/2023
Version:1 Item #:10a.
Resolution authorizing the submittal of an application for the San Mateo County Shuttle Program Funding in an
amount of $1,064,400 and committing a 25%matching contribution of $354,800 from South San Francisco
Local Measure A funds, in support of the South City Shuttle program
WHEREAS,there is a need to provide free public transportation options within the City of South San
Francisco (“City”); and
WHEREAS,the South City Shuttle is a project to provide shuttle service beginning and ending at the
South San Francisco Bay Area Rapid Transit (“BART”)station,circling the City,and making stops at key
public facilities (“Project”); and
WHEREAS,there is sufficient ridership on the existing South City Shuttle to indicate the Project
provides an important service to the South San Francisco community; and
WHEREAS,maintaining the current routes and timetable continues to provide service to current riders;
and
WHEREAS,improving marketing and outreach will increase community awareness of the shuttle and
increase ridership; and
WHEREAS,the estimated project cost to implement the continuation of the current South City Shuttle
is $1,419,200, which includes a required local match of twenty-five percent; and
WHEREAS, the City wishes to continue to sponsor the South City Shuttle Project; and
WHEREAS, the City seeks $1,064,400 in grant funding to continue the Project; and
WHEREAS,the City commits a 25%matching contribution of $354,800 for the Project over two fiscal
years (FY 2023 - 2024 and FY 2024 - 2025); and
WHEREAS,on June 7,1988,the voters of San Mateo County approved a ballot measure to allow the
collection and distribution by the San Mateo County Transportation Authority (TA)of a half-cent transactions
and use tax in San Mateo County for 25 years,with the tax revenues to be used for highway and transit
improvements pursuant to the Transportation Expenditure Plan presented to the voters (Original Measure A);
and
City of South San Francisco Printed on 2/3/2023Page 1 of 3
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File #:23-63 Agenda Date:2/8/2023
Version:1 Item #:10a.
WHEREAS,on November 2,2004,the voters of San Mateo County approved the continuation of the
collection and distribution by the TA the half-cent transactions and use tax for an additional 25 years to
implement the 2004 Transportation Expenditure Plan beginning January 1, 2009 (New Measure A); and
WHEREAS,the Board of Directors of the City/County Association of Governments (C/CAG)of San
Mateo County at its February 14,2002 meeting approved the Congestion Relief Plan and subsequently
reauthorized the Congestion Relief Plan in 2007, 2010, 2015 and 2019; and
WHEREAS,a component of the C/CAG Congestion Relief Plan is to support Local and Employer
Based Shuttle Programs; and
WHEREAS,the TA and C/CAG issued a joint Call for Projects for the San Mateo County Shuttle
Program on January 13, 2023, and
WHEREAS, the TA and C/CAG require the City's governing board to adopt a resolution:
1.Supporting the South City Shuttle Project and the City's application for $1,064,400 in TA
Measure A Shuttle Program funds for the Project;
2.Committing the City to the completion of the Project, including the commitment of matching
funds in the amount of $354,800 needed for implementation;
3.Certifying that any funds awarded by the TA or C/CAG will be used to supplement existing
funds for program activities, and will not replace existing funds or resources; and
4.If funds are awarded, authorizing the City Manager, or designee, to sign a funding agreement or
memorandum of understanding (MOU) with the TA and, if necessary, C/CAG, for Shuttle Program
funding for the Project and to take any other actions necessary to give effect to this resolution.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco:
1.Directs staff to submit an application for funding from the San Mateo County Shuttle Program
for $1,064,400 for the South City Shuttle Project;
2.Authorizes the City Manager, or designee, to execute a funding agreement or MOU with the San
Mateo County Transportation Authority and, if necessary, the City/County Association of
Governments of San Mateo County to encumber San Mateo County Shuttle Program funds;
3.Commits to completing the Project, including contributing $354,800 of matching funds needed
for Project implementation, if the requested funds are awarded;
4.Certifies that any funds awarded by the TA or C/CAG will be used to supplement existing funds
for program activities, and will not replace existing funds or resources; and
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File #:23-63 Agenda Date:2/8/2023
Version:1 Item #:10a.
5.Authorizes the City Manager, or designee, to take any other actions necessary to give effect to
this resolution.
*****
City of South San Francisco Printed on 2/3/2023Page 3 of 3
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City of South San Francisco
Legislation Text
P.O. Box 711 (City Hall, 400
Grand Avenue)
South San Francisco, CA
File #:23-106 Agenda Date:2/8/2023
Version:1 Item #:10b.
Resolution authorizing the submittal of a second application for the San Mateo County Shuttle program funding
in an amount of $597,476.25 and committing a 25%matching contribution of $199,158.75 from South San
Francisco Local Measure A funds, to provide additional shuttle services in South San Francisco
WHEREAS,there is a need to provide free public transportation options within the City of South San
Francisco (“City”); and
WHEREAS,the South City Shuttle is a project to provide shuttle service beginning and ending at the
South San Francisco Bay Area Rapid Transit (“BART”)station,circling the City,and making stops at key
public facilities (“Project”); and
WHEREAS,there is sufficient ridership on the existing South City Shuttle to indicate the Project
provides an important service to the South San Francisco community; and
WHEREAS,based on the feedback received from the community,there is a demand for expansion of
South City Shuttle service to additional neighborhoods of South San Francisco; and
WHEREAS,to meet this demand,the city desires to expand shuttle operations into neighborhoods not
currently serviced by existing routes; and
WHEREAS,the estimated project cost to implement an additional route of the South City Shuttle is
$796,635, which includes a required local match of twenty-five percent; and
WHEREAS, the City wishes to sponsor the expansion of the South City Shuttle Project; and
WHEREAS, the City seeks $597,476.25 in grant funding to implement the Project; and
WHEREAS,the City commits a 25%matching contribution of $199,158.75 for the Project over two
fiscal years (FY 2023 - 2024 and FY 2024 - 2025); and
WHEREAS,on June 7,1988,the voters of San Mateo County approved a ballot measure to allow the
collection and distribution by the San Mateo County Transportation Authority (TA)of a half-cent transactions
and use tax in San Mateo County for 25 years,with the tax revenues to be used for highway and transit
improvements pursuant to the Transportation Expenditure Plan presented to the voters (Original Measure A);
and
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File #:23-106 Agenda Date:2/8/2023
Version:1 Item #:10b.
WHEREAS,on November 2,2004,the voters of San Mateo County approved the continuation of the
collection and distribution by the TA the half-cent transactions and use tax for an additional 25 years to
implement the 2004 Transportation Expenditure Plan beginning January 1, 2009 (New Measure A); and
WHEREAS,the Board of Directors of the City/County Association of Governments (C/CAG)of San
Mateo County at its February 14,2002 meeting approved the Congestion Relief Plan and subsequently
reauthorized the Congestion Relief Plan in 2007, 2010, 2015 and 2019; and
WHEREAS,a component of the C/CAG Congestion Relief Plan is to support Local and Employer
Based Shuttle Programs; and
WHEREAS,the TA and C/CAG issued a joint Call for Projects for the San Mateo County Shuttle
Program on January 13, 2023, and
WHEREAS, the TA and C/CAG require the City's governing board to adopt a resolution:
1.Supporting the expansion of the South City Shuttle Project and the City's application for
$597,476.25 in TA Measure A Shuttle Program funds for the Project;
2.Committing the City to the completion of the Project,including the commitment of matching
funds in the amount of $199,158.75 needed for implementation.
3.Certifying that any funds awarded by the TA or C/CAG will be used to supplement existing
funds for program activities, and will not replace existing funds or resources; and
4.If funds are awarded,authorizing the City Manager,or designee,to sign a funding agreement or
memorandum of understanding (MOU)with the TA and,if necessary,C/CAG,for Shuttle Program
funding for the Project and to take any other actions necessary to give effect to this resolution.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco:
1.Directs staff to submit an application for funding from the San Mateo County Shuttle Program
for $597,476.25 for the expansion of the South City Shuttle Project;
2.Authorizes the City Manager,or designee,to execute a funding agreement or MOU with the San
Mateo County Transportation Authority and,if necessary,the City/County Association of
Governments of San Mateo County to encumber San Mateo County Shuttle Program funds;
3.Commits to completing the Project,including contributing $199,158.75 of matching funds
needed for Project implementation, if the requested funds are awarded;
4.Certifies that any funds awarded by the TA or C/CAG will be used to supplement existing funds
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File #:23-106 Agenda Date:2/8/2023
Version:1 Item #:10b.
for program activities, and will not replace existing funds or resources; and
5.Authorizes the City Manager,or designee,to take any other actions necessary to give effect to
this resolution.
*****
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ID Start time Completion time Email Name / Nombre Would you like to speak If you would like to speak on an agenda item(s), Enter the Agenda Item Number(s) below. If adding more than one item, please add a comma between each number.Por favor ingrese el número de artíc...1 2/8/23 15:45:53 2/8/23 17:36:08 anonymous Raymond Miller No Yes, Agenda 82 2/8/23 17:36:17 2/8/23 17:37:04 anonymous Cynthia Marcopulos Yes / Si Public comment and item 63 2/8/23 17:42:12 2/8/23 17:42:46 anonymous Tom Carney Yes / Si Item 9 linden lots designed for park4 2/8/23 17:46:06 2/8/23 17:51:20 anonymous Alison Madden Yes / Si No 5 2/8/23 17:55:02 2/8/23 17:55:19 anonymous Cory David Yes / Si Public Comment6 2/8/23 18:04:29 2/8/23 18:07:53 anonymous Robert Richardson Yes / Si Na7 2/8/23 18:07:45 2/8/23 18:08:22 anonymous Fionnola Villamejor Yes / Si Public Comment8 2/8/23 18:07:59 2/8/23 18:12:02 anonymous Tom Carney Yes / Si Item 4 surplus land item 49 2/8/23 18:23:01 2/8/23 18:23:43 anonymous Fionnola Villamejor No Measure W