HomeMy WebLinkAbout02.07.2024 @630 Regular Measure W COCWednesday, February 7, 2024
6:30 PM
City of South San Francisco
P.O. Box 711 (City Hall, 400 Grand Avenue)
South San Francisco, CA
City Hall, City Manager's Conference Room
400 Grand Avenue, South San Francisco, CA
Measure W Citizens' Oversight Committee
Engy Del Rosario, Chair
Edmund de Guzman, Vice Chair
William Zemke, Committee Member
Mike Brosnan, Committee Member
Jamie Rey, Committee Member
William Romero - Alternate
Regular Meeting Agenda
February 7, 2024Measure W Citizens' Oversight
Committee
Regular Meeting Agenda
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Page 2 City of South San Francisco Printed on 2/2/2024
February 7, 2024Measure W Citizens' Oversight
Committee
Regular Meeting Agenda
CALL TO ORDER
ROLL CALL
AGENDA REVIEW
ITEMS FROM STAFF MEMBERS
PUBLIC COMMENT
MATTERS FOR CONSIDERATION
Review and approve of the meeting minutes for the Measure W Citizens’ Oversight
Committee meeting of December 6, 2023.
1.
Annual Reorganization of the Measure W Citizens’ Oversight Committee. (Kimia
Mahallati, City Attorney’s Office)
2.
Report regarding a resolution acknowledging receipt of the Fiscal Year 2022-23
Annual Comprehensive Financial Report and approving memorandum to City Council
independently verifying use of Measure W funds. (Karen Chang, Finance Director)
3.
Resolution of the Measure W Citizen’s Oversight Committee acknowledging receipt of
the Fiscal Year 2022-23 Annual Comprehensive Financial Report and approving
memorandum to City Council independently verifying use of Measure W funds.
3.a
Informational Report on Measure W FY 2023-24 financials and project update for
Measure W funded projects. (Karen Chang, Finance Director)
4.
ITEMS FROM BOARD MEMBERS, COMMISSIONERS, COMMITTEE MEMBERS
ADJOURNMENT
Page 3 City of South San Francisco Printed on 2/2/2024
CALL TO ORDER Vice Chair De Guzman called the meeting to order at 6:35 p.m.
ROLL CALL Chair Del Rosario, absent
Vice Chair De Guzman, present
Committee member Zemke, present
Committee member Brosnan, present
Committee member Rey, present
AGENDA REVIEW
No changes.
WELCOME AND INTRODUCTIONS
Finance Director Karen Chang provided a brief overview of the agenda for the evening. Assistant
City Attorney Ali Wolf advised that this was her last Measure W Meeting, and that Kimia Mahallati
would be attending moving forward.
IN PERSON PUBLIC COMMENT:
No in person public comment.
MATTERS FOR CONSIDERATION
1.Motion to approve the Minutes from the meeting on October 4, 2023.
Motion – Committee Member Zemke: To approve the minutes from October 4, 2023, Committee
Member Brosnan/Second – by roll call vote: AYES Vice Chair De Guzman, Committee Member
Zemke, Committee member Brosnan, Committee member Rey and NAYS: Non; ABSENT: Chair
Del Rosario; ABSTAIN: None. Motion passes unanimously.
2.Measure W Audit Planning Phase presentation by Amy Meyer, Maze & Associates
During presentation, Vice Chair De Guzman asked to review Audit Scope slide. Vice Chair De
Guzman asked what kind of risk assessment was performed for Measure W? Amy Meyer advised that
they do not perform any procedures specific to Measure W because it is a general tax and there are
no restrictions other than potentially city-imposed restrictions. There are no restrictions on the
fundings, it’s a general tax without specific restrictions. Maze does obtain revenue confirmation from
the State of California in how much money was sent to the City. It is being confirmed with the third
party, being the State. The revenue received and the expenditures are tied to general ledger activity
MINUTES
SPECIAL MEETING
MEASURE W CITIZENS' OVERSIGHT COMMITTEE
CITY OF SOUTH SAN FRANCISCO
Wednesday, December 6, 2023
6:30 p.m.
IN-PERSON MEETING
MEASURE W COC MEETING MINUTES December 6, 2023
PAGE 2
balancing if there is a transfer out from the fund and that there is a corresponding transfer in. The
same with the debt service whether it’s for projects or debt service. There are no other procedures we
perform specific to Measure W. Vice Chair De Guzman asked if when the audit is performed, they
are checking for reconciliation with the books of the City with the numbers of the sales tax. Amy
agreed. Vice Chair De Guzman clarified that it was to check for discrepancies. Amy confirmed. Amy
provided an additional explanation of the $2.5 million in the AR. Vice Chair De Guzman asked if
there was an audit plan. Amy clarified that the audit plan covered the City as a whole and not just
specific to Measure W. Amy advised that if there was a transaction related to Measure W and there
was an issue, it would be reported. Vice Chair De Guzman asked for clarification that test system
control is performed. Amy confirmed. Vice Chair De Guzman asked if they tested for weakness and
strengths of the system control? Amy confirmed. They are looking for overall duty assignments and
segregation of duties in significant control areas. We are testing for any weakness or conflicts that are
not mitigated. Mitigating or compensating control terms are used. Where the same people should not
have access to assets and process. There should be a segregation of duties or mitigator or
compensating control. Usually in the form of review and approval by a second person. It’s part of the
testing transaction. The city system has controls built-in, in what they call workflow. These are
programed into the system. One person reviews and initiates transaction and the next person approves.
The same person is not permitted to review and approve the same transaction.
Chair De Guzman asked if in compliance testing if expenditures are being properly spent? Amy
advised that depending on the restrictions. There is compliance testing when it comes to grants for
what the City can and cannot use funds for. They also test the City for its own purchasing policy
requirements whether there is bidding or quote requirements. Vice Chair De Guzman clarified if in
the compliance weighs over auditing due to the law or rule. Amy confirmed. Amy advised that some
of the sales tax add on measures, different cities have different restrictions. Some may be only used
for public safety or only capital projects. Since Measure W is a general tax, there is no compliance
test for expenditures because there is no restriction. If we were to pick a transaction, it is more for
compliance with the City’s own policy. Vice Chair De Guzman asked if the debt service of $8 million
noted are the funds that would be used to repay loan. Amy confirmed. Chair De Guzman asked if that
was an annual amount? Amy confirmed. Vice Chair De Guzman asked if the $8 million was a
component of payment for the $222 million loan? Director Chang provided an example of how the
loan is being repaid.
Vice Chair De Guzman commented that Ms. Richardson provided some bond information. Finance
Director Chang advised that in previous meetings she went over the bonds. Vice Chair De Guzman
asked for clarification if the city was paying $8 million per year and if the loan is being paid down.
Vice Chair De Guzman asked for an outstanding balance on the loan. Director Chang advised she
will provide the loan schedule. Director Chang advised that the initial payments were heavily on
interest in the beginning. Amy commented that it was roughly a 30-year bond and a payment of
approximately $6 million is being made.
Vice Chair De Guzman asked if a draft audit report was going to be provided. Director Chang advised
that they were still working on finalizing the report and will have it finalized for the next meeting in
February 2024.
Amy Meyer advised that they were in the middle of the wrap up phase and there are no anticipated
journal entry adjustments to this fund.
MEASURE W COC MEETING MINUTES December 6, 2023
PAGE 3
Vice Chair De Guzman asked for clarification on the difference between what was in the budget and
actual from Budget-Actual statement. Amy Meyer advised it was timing of capital projects. There
were additional expenditures expected with the project. There was just under $11 million budget
amendment to increase the transfers out. Additional capital projects were expected, and they were
expected to be transferred by June 30th and the transfer did not happen. Unsure if it was rolled over
to the following year. Director Chang confirmed, they did roll over.
Director Chang advised that besides paying for the debt service, there is still a portion that would
transfer to the capital project. Therefore, many of them had not been paid. If the funds are not utilized,
the funds will not be transferred at that time.
Vice Chair De Guzman asked for clarification of funds not being spent, are they being rolled over to
the following year. Director Chang confirmed. Director Chang advised that normally for capital
projects will have a span of more than (1) one year. It depends on the progress. Director Chang
provided an example for clarification. Vice Chair asked what project funds were rolled over. Director
of Finance Chang advised that it was for Civic Campus and Pavement project. Amy Meyers advised
that there were two small transfers this year. With the $1,054,000 million being the pavement project
that Karen mentioned and the $1,078,000 for Civic Campus. The $13 million budget variance is more
of the same.
Committee Member Zemke asked for clarification if Measure W funds were used for ball field.
Director Chang confirmed that the ball field and the remaining project, the aquatic center were and
are funded. Committee Member Zemke asked if there were any other projects the Director Chang was
aware of? Director Chang advised that no additional projects at this point. Director Chang advised
that question has been previously brought up during the last meeting. She has communicated with the
CMO’s office and has asked to be made aware of any potential projects for Measure W funds. Director
Chang advised that she will ensure that any potential projects would be communicated to the
committee.
Committee Member Brosnan asked if there was a timeline for the aquatic project. Assistant City
Manager Richard Lee advised that there is a staff report going to Council on December 13, 2023. The
intent is to start in 2024.
Committee Member Zemke asked when they would issue additional bonds. Director Chang advised
she did not want to speculate, there is no plan that she is aware of at this point. Committee Member
Zemke asked if there was a schedule to issue additional bonds. Director Chang advised that the bonds
have been issued with the third tranche.
3. Action minutes - Presentation and discussion on Measure W Financials.
Director Chang provided an informational report on Measure W fund balance and expenditures for
first quarter of 2023-24. Reiterated that Amy Meyer had just presented results for the fiscal year
ending 2022-23. Director Chang advised that her report is for first quarter FY 2023-24 (July –
September 2023). There were very few activities in the first quarter. The only revenue is the sales
tax that has two months lag time. There is $1.3 million that represent payment that Measure W
received for July, sometime in September.
MEASURE W COC MEETING MINUTES December 6, 2023
PAGE 4
The direct expenditure for the first quarter is roughly $39,000, which is the salary benefit for the
project manager. Other than that, there is no other activity. No debt service payment for this quarter
and no activity for capital improvements fund transfer yet.
Director Chang advised that last year in this quarter, the City received $1.1 million. There is a slight
increase in comparison to this year at $1.3 million, about 14% increase in revenue.
Director Chang advised that for this report, the budget associated with the capital projects has not
been rolled over yet. Currently, we only have a salary and benefits budget variance for $400,000.
The debt service payment is anticipated to be about $8.2 million. Director Chang advised that the
Committee had requested cashflow and balance sheet. The $16 million may look familiar as it was
just shown in Amy’s report. We added the revenue of $1.3 million and have expenditures of about
$39,000 leaving a fund balance of about $18 million. Director Chang opened up for questions.
Vice Chair De Guzman requested confirmation that this report is for the first quarter of 2024.
Director Chang confirmed that it was for fiscal year beginning July 1, 2023 to June 30, 2024. Vice
Chair De Guzman requested confirmation of books closing June 30, 2023. Director Chang
confirmed. Vice Chair De Guzman requested clarification of calendar year or fiscal year. Director
Chang clarified it was fiscal year 2023-24.
Committee Member Zemke asked how much funding is left in the bond proceeds and will that then
fund the next capital project which is the aquatic center. Director Chang advised that all the bond
proceeds have been appropriated to different projects. Committee Member Zemke asked for
clarification if the bond proceeds are expected to cover the full cost of the aquatic center. Director
Chang confirmed.
Director Chang advised that she will send out an email to the Committee providing the outstanding
principal amount. Director Chang reminded the Committee that in the next meeting, the
reorganization will take place.
Vice Chair De Guzman asked for clarification of the matter that was sent by Ms. Richardson. What
were her intentions? Is her intention to advise us how the bonds work? Director Chang advised that
she just passed on the information she wanted to share with the members. Committee Member
Zemke commented that he’s not sure if she has a full grasp of how bonds work. Vice Chair De
Guzman commented that the bonds she sent were regarding the school district. The expenditures
should be approved by the people who are overseeing. Director Chang advised that the City is a
different organization and that the nature of Measure W is slightly different than school bonds that
are issued for specific purpose most of the time.
MEASURE W COC MEETING MINUTES December 6, 2023
PAGE 5
ADJOURNMENT
Being no further business, Vice Chair De Guzman adjourned the meeting at 7:15 p.m.
Submitted by: Approved by:
______________________ ______________________________
Patty Gomez Del Rosario
Secretary Chair
Approved by the Measure W Citizens’ Oversight Committee: / /
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2023
CITY OF SOUTH SAN FRANCISCO
CALIFORNIA
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2023
Prepared by:
Department of Finance
This Page Left Intentionally Blank
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents
Page
INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................... i
Letter of Transmittal ......................................................................................................................................... v
Certificate of Achievement for Excellence in Financial Reporting ................................................................ xi
Organization Chart .......................................................................................................................................... xii
City Council and Directory of City Officials ................................................................................................ xiii
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 ................................................................................................................................ 34
Reconciliation of Governmental Fund Balances to Net Position of Governmental Activities .... 36
Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................... 38
Reconciliation of the Net Change in Fund Balances Total Governmental Funds with
the Statement of Activities ........................................................................................................ 40
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual –
Budgetary Basis:
General Fund ....................................................................................................................... 41
American Rescue Plan Act Special Revenue Fund ............................................................. 42
i
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents
Page
FINANCIAL SECTION (Continued)
Major Proprietary Funds:
Statement of Net Position .............................................................................................................. 44
Statement of Revenues, Expenses, and Changes in Fund Net Position ........................................ 45
Statement of Cash Flows ............................................................................................................... 46
Fiduciary Funds:
Statement of Fiduciary Net Position ............................................................................................. 48
Statement of Changes in Fiduciary Net Position .......................................................................... 49
Notes to Basic Financial Statements ...................................................................................................... 51
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
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
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 ..................................................................................................................... 130
Budgeted Non-major Government Funds:
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balances – Budget and Actual ................................................................................... 136
Internal Service Funds:
Combining Statement of Net Position ............................................................................................ 144
Combining Statement of Revenues, Expenses and Changes in Fund Net Position ....................... 145
Combining Statement of Cash Flows ............................................................................................. 146
Custodial Funds:
Combining Statement of Net Position ............................................................................................ 148
Combining Statement of Changes in Net Position ......................................................................... 149
STATISTICAL SECTION
Net Position by Component – Last Ten Fiscal Years .................................................................... 153
Changes in Net Position – Last Ten Fiscal Years .......................................................................... 154
Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................. 158
Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ................................ 160
Assessed Value of Taxable Property – Last Ten Fiscal Years ...................................................... 162
Direct and Overlapping Governments – Property Tax Rates
Last Ten Fiscal Years ................................................................................................................ 163
Principal Property Taxpayers – Current Year and Nine Years Ago .............................................. 164
Property Tax Levies and Collections – Last Ten Fiscal Years ...................................................... 165
iii
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
Table of Contents
Page
STATISTICAL SECTION (Continued)
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................ 166
Computation of Direct and Overlapping Debt ............................................................................... 167
Computation of Legal Bonded Debt Margin ................................................................................. 168
Revenue Bond Coverage Sewer Rental Enterprise Fund – Last Ten Fiscal Years ....................... 169
Sewer Debt Service Coverage Sewer Rental Enterprise Fund – Last Eight Fiscal Years ............. 170
Redevelopment Pledged Revenue Coverage – Last Ten Fiscal Years .......................................... 171
Demographic and Economic Statistics – Last Ten Calendar Years .............................................. 172
Principal Employers – Current Year and Nine Years Ago ............................................................ 173
Full-Time Equivalent City Governmental Employees by Function – Last Ten Fiscal Years ....... 174
Operating Indicators by Function/Program – Last Nine Fiscal Years ........................................... 175
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ......................................... 176
Miscellaneous Information – Last Five Fiscal Years ..................................................................... 177
iv
December 27, 2023
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 (City) for the fiscal year (FY) ended June 30, 2023.
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,
2023.
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 2023
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)
SHARON RANALS, CITY MANAGER
v
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, 2023, 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 on
or before March of 2024.
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 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 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
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. The City shifted from at-large to district elections in November 2018
for the City Council. 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.
This report includes all financial activities of the City, 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 continued to recover from the economic challenges associated with the
global COVID-19 pandemic during Fiscal Year 2022-23. Unemployment rates
increased slightly during the year from 2.60% in July 2022 to 3.10% in June 2023.
This is in-line with the County of San Mateo’s unemployment rate of 3.10% but
better than the State’s unemployment rate of 4.60% as of June 2023.
Property tax revenues remained strong in FY 2022-23, continuing a multi-year
trend that has been key to the City’s ongoing financial strength. Property taxes
rose by 8.56%, supported by stable property sales activity and receipt of an
additional $4 million from the Successor Agency Tax allocation. Permit and
inspection revenue had seen a 45.5% jump in revenues from FY 2021-22 due to
increase in activities. Revenues from transient occupancy taxes have recovered
from pandemic levels low and experienced a 34.8% increase in FY 2022-23 as
travel activities and tourism rebounded.
An exception to these positive trends occurred with sales tax receipts, which
declined by 1.1% in FY 2022-23 after an extraordinarily strong performance in FY
2021-22.
Much uncertainty remains about the City’s prospects for further economic
recovery, largely due to global economic stresses. Widespread inflation and
interest rate increases, rising energy costs, protracted war in Europe, and the
vii
potential for global recession all weigh heavily on South San Francisco’s fiscal
outlook in the wake of FY 2022-23. Amidst these near-term global crises, the City
continues to face numerous local challenges including housing affordability, traffic
congestion, growth, and crime. To the extent they impact revenue growth, negative
global economic trends may also constrain the City’s ability to address such local
policy priorities.
Despite immediate and longer-term challenges, the City remains well-positioned
to take advantage of ongoing regional economic growth. The City remains a
desirable location and continues to draw new residents and businesses. South
San Francisco is home to the largest biotech cluster in the world, with over 250
biotech companies, and 11.5-million square feet of biotech space on 500-acres.
Population growth also appears likely to recover from modest pandemic era
declines as residential construction remains robust in a region with continued
strong housing demand and a longstanding shortfall of supply. The City’s
burgeoning tourism industry is also primed for growth with added hotel capacity in
recent years. These strong fundamentals, which propelled South San Francisco’s
economy in prior years, appear likely to support renewed growth as the City
emerges from the public health crisis.
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 service on lease revenue bonds issued for construction of police
station, Civic Campus, a new Aquatic Center and facilities at Orange Memorial
Park. The Civic Center and Multi-purpose sports field opened in October 2023.
MAJOR CITY SPONSORED INITIATIVES
The City is committed to provide innovative, responsive services to enhance the
quality of life of the community through which it continued to implement services
and programs that are consistent with the community’s mission, vision, values, and
strategic goals. Major programs/projects and accomplishments for FY 2022-23
are included as follows:
Strategic Plans
Completed Master Plans for Centennial Way Trail and Orange Memorial
Park
City Services
In partnership with the South San Francisco Unified School District,
expanded free after school programs for transitional kindergarten through
sixth grade students as a part of the Expanded Learning Opportunities
Program (ELOP) through the California Department of Education
Launched the Joint Advisory Committee of the Child Care Master Plan
Expanded free South City Shuttle services
viii
Capital Projects
Completion of Water Quality Plant’s Wet Weather Digesters Improvement
Project
Electrification of City’s Fleet with addition of 18 new Electric Vehicles
Completion of Oyster Point Development Phase 1C
Pavement Management Program – 2021 Surface Seal & Rehab projects
South Airport Boulevard Improvement Project
West Orange and Hillside Pedestrian Crossing Improvement Project
Oyster Point Pump Station
Water Quality Control Plant Sludge Dewatering Improvements
Bay Trail Improvements at Oyster Point 2C
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 expenditure 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.
ix
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.
City continues to receive a triple A credit rating, which 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.
OTHER INFORMATION
Award
The City’s ACFR for the fiscal year ended June 30, 2022, 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 auditor. Each member of the
department has our sincere appreciation for the contributions made in the
preparation of this report. 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 Sharon Ranals
Director of Finance City Manager
x
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, 2022
Executive Director/CEO
xi
Citizens of South San Francisco
City Council
City Clerk
Rosa Govea Acosta
City Treasurer
Frank Risso
City Manager
Sharon Ranals
City Attorney
Sky Woodruff
Exec. Assistant to the City
Manager
Marie Patea
Administrative Departments
Operating Departments
Fire Chief
Jess Magallanes
Public Works Director
Eunejune Kim
Library Director
Valerie Sommer
Parks and Recreation Director
Greg Mediati
Econ. & Comm. Development Director
Nell Selander
Chief of Police
Scott Campbell
Human Resources Director
Leah Lockhart
Finance Director
Karen Chang
Assistant City Manager *
Richard Lee
Deputy City Manager
Buenaflor Nicolas (District 3), Mayor
Mark Nagales (District 2), Vice Mayor
Mark Addiego (District 1), Member
James Coleman (District 4), Member
Eddie Flores (District 5), Member
Information Technology
Director
Tony Barrera
Capital Projects Director Jacob Gilchrist
Phillip Vitale
Dep. Capital Projects Director
Christina Fernandez
*As of June 30, 2023, the Assistant City Manager position was vacant. Rich Lee joined the City in late August 2023
xii
City Council & Directory of Officials*
City Council
Buenaflor Nicolas (District 3) Mayor
Mark Nagales (District 2) Vice Mayor
Mark Addiego (District 1) Councilmember
James Coleman (District 4) Councilmember
Eddie Flores (District 5) Councilmember
Elected Officials
Rosa Govea Acosta City Clerk
Frank Risso City Treasurer
Appointed Officials
Sharon Ranals City Manager
Richard Lee Assistant City Manager
ChrisƟna Fernandez Deputy City Manager
Karen Chang Finance Director
ScoƩ Campbell Chief of Police
Tony Barrera InformaƟon 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 MediaƟ Parks & RecreaƟon Director
Budget SubcommiƩee
Mark Addiego
Buenaflor Nicolas
*As of November 15, 2023
xiii
This Page Left Intentionally Blank
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, 2023, 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 0.61%, 0.79%, and 1.32%, 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, 2023, 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
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 there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
•Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the 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.
2
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
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated ____, 2023, 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, 2023
4
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
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, 2023. 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 2022-23 increased by $37.5 million, or
9.5%, from $396.8 million in the prior year, to $434.3 million. The increase in cash and
investments of $46 million was mainly due to higher revenues received in the year with a
reduction in receivables at the end of the year. The reduction in restricted cash and investments
was due to drawing down from bond proceeds to fund capital projects, mainly Orange
Memorial Parks and Civic Campus. The decrease in bond trustee account was offset by the
capitalization of the Police Station at $53 million. The growth in assets of $28.1 million was
offset by a $77.4 million increase in Net Pension Liability.
Total Net Position for Business-Type activities in FY 2022-23 increased by $5 million, or
3.6%, from $137.9 million in the prior year, to $142.9 million. The growth in Net Position was
mainly due to recognition of a $4 million loan forgiven stipulated in the State Water Resources
Board loan agreement.
City-wide Net Pension Liability to CalPERS for FY 2022-23 increased by $86.0 million, or
59.6%, from $144.4 million in the prior year to $230.4 million. This significant increase in
liability was driven by revised actuarial assumption, lowered discount rates imposed by
CalPERS, and coupling with weaker investment earnings.
City-wide cash and investments at year end increased $53.3 million, or 20.1%, from $264.8
million in the prior year to $318.1 million. This reflects the underlying strength in the local
economy as the City continued to recover from the pandemic and the strong real-estate market.
Revenues from Governmental Activities (excluding transfers and special items) increased by
$12.5 million, or 6.1%, to $216.4 million in FY 2022-23 from $203.9 million in the prior year.
Revenues from Business-Type Activities (excluding transfers and special items) increased
$1.8 million, or 5.35%, to $36.2 million in FY2022-23 from $34.4 million in the prior year.
Expenses from Governmental Activities (excluding transfers and special items) increased by
$36.8 million, or 27.32%, to $171.6 million in FY2022-23 from $134.8 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 increased by $4.7 million,
or 16.4%, to $33.4 million compared to $28.7 million in the prior year.
5
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
Property tax revenues categorized under Governmental Activities increased in FY 2022-23 by
$7.7 million, or 19.3%, to $47.7 million from $40 million in the prior year. This was primarily
due to the continued strong real estate market and also from receipt of a higher tax allocation
from the Successor Agency.
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 had increased to $16.3 million, an increase of
$4.2 million, or 34.7%, from $12.1 million in the prior year. Total TOT receipts have almost
returned to pre-pandemic levels, but there is still some lag in business travel.
Revenue from Property Taxes in Lieu, otherwise known as the California Vehicle Licensing
Fee (VLF), had decreased to $8.8 million in FY 2022-23 from $12 million in the prior year, a
decrease of $3.2 million or 26.7%. This is a volatile revenue source that is difficult to predict,
and the decrease 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.
Total program revenues from the City’s Enterprise Funds increased slightly by $0.7 million,
or 2.0% to $35.9 million from $35.2 million in the prior year. This was largely due to the
recovery of sewer services charge revenues resulting from the reopening of businesses and
more workers returned to work. The City’s Parking Enterprise experienced a $0.07 million, or
6.9%, increase in revenues to $1.06 million in FY2022-23 compared to $0.99 million in the
prior year due to a higher level of parking activities as consumers returned to the City following
removal of pandemic-related restrictions.
6
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
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;
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 a 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
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
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 details 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 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
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
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 details of these non-Major funds. Major Funds present the major activities of the City for the
year and may change from year to year because 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 2022-23 are presented versus FY 2021-22.
9
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
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, 2023 for Governmental Activities:
Governmental Net Position
Table 1
Governmental Net Position as of June 30
(In Millions)
Increase / (Decrease)
2023 2022 Amount %
Cash and investments 285.8$ 239.8$ 46.0$ 19.2%
Other assets 117.0 201.9 (84.9) (42.1%)
Capital assets 532.7 465.7 67.0 14.4%
Total assets 935.5 907.4 28.1 3.1%
Total outflows of resources 64.6 28.8 35.8 124.3%
Total outflow of resources 64.6 28.8 35.8 124.3%
Long‐term debt outstanding 219.0 223.8 (4.8) (2.1%)
Other liabilities 331.4 253.4 78.0 30.8%
Total liabilities 550.4 477.2 73.2 15.3%
Deferred inflows of resources 15.4 62.1 (46.7) (75.2%)
Total deferred inflow of resources 15.4 62.1 (46.7) (75.2%)
Net position:
Net investment in capital assets 390.8 384.8 6.0 1.6%
Restricted 130.1 139.0 (8.9) (6.4%)
Unrestricted (86.6)(127.0)40.4 (31.8%)
Total net position 434.3$ 396.8$ 37.5$ 9.5%
10
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
As shown in table 1, the total net position for Governmental Activities increased by $37.5 million
in FY 2022-23 compared to the prior year, reflecting significant increases in assets. Cash and
investments increased by $46 million. Other assets, which includes receivables, properties held
for redevelopment, and restricted cash and investments, decreased by $84.9 million due to
reduction of the restricted cash, which represented the bond proceeds for capital assets such as the
Civic Campus and Orange Memorial Park that were completed in October 2023. Capital assets
increased by $67 million due to capitalization of new Police Station and other bond funded street
projects.
Pursuant to GASB 75 and GASB 68 requirements, respectively, the City, as in prior years,
recognized the Net OPEB liability of $58.4 million and Net Pension Liability of $207.4 million
attributable to Governmental Activities.
11
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
The following table shows the changes in net position for Governmental Activities:
Table 2
Expense and Program Revenue Comparison in Governmental Activities
(In Millions)
Increase / (Decrease)
2023 2022 Amount %
Revenues
Program revenues:
Charges for services 53.4$ 66.7$ (13.3)$ (19.9%)
Operating grants and contributions 12.9 10.9 2.0 18.3%
Capital grants and contributions 2.0 3.3 (1.3) (39.4%)
Total program revenues 68.3$ 80.9$ (12.6)$ (15.6%)
General revenues:
Taxes:
Property taxes 47.7$ 40.0$ 7.7$ 19.3%
Sales taxes 37.7 38.1 (0.4) (1.0%)
Transient occupancy taxes 16.3 12.1 4.2 34.7%
Other taxes 13.4 11.5 1.9 16.5%
Property taxes in lieu 8.8 12.0 (3.2) (26.7%)
Investment earnings 5.1 (6.7) 11.8 (176.1%)
Miscellaneous 19.1 16.0 3.1 19.4%
Total general revenues 148.1$ 123.0$ 25.1$ 20.4%
Total revenues 216.4$ 203.9$ 12.5$ 6.1%
Expenses
General government 25.0$ 20.8$ 4.2$ 20.2%
Fire department 36.9 28.5 8.4 29.5%
Police department 37.9 35.7 2.2 6.2%
Public Works 21.9 7.5 14.4 192.0%
Parks and Recreation 23.5 19.5 4.0 20.5%
Library 6.6 6.1 0.5 8.2%
Economic and Community Development 12.9 12.0 0.9 7.5%
Interest on long‐term debt 6.9 4.7 2.2 46.8%
Total expenses 171.6$ 134.8$ 36.8$ 27.3%
Excess / (deficiency) before transfers 44.8$ 69.1$ (24.3)$ (35.2%)
Special Item (5.2) (3.0) (2.2) 73.3%
Transfers (2.1) (1.4) (0.7) 50.0%
Change in net position 37.5 64.7 (27.2) (42.0%)
Net position ‐ beginning 396.8 332.1 64.7 19.5%
Net position ‐ ending 434.3$ 396.8$ 37.5$ 9.5%
12
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
As shown in table 2, total Governmental revenues (excluding transfers and special items) increased
by $12.5 million, or 6.1%, compared to the prior year. The increase was due to higher investment
earnings. However, the increase was offset by a decrease in Charges for services largely resulting
from significant reduction in impact fees collected during this fiscal year. 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. On the other hand, the Charges for Services from facility rentals,
and childcare and aquatic programs offered by the City during the year were higher due to the
City’s recovery from the COVID-19 pandemic. The recovery also gave rise to a $4.2 million
increase in TOT as travel restrictions were removed, hotel occupancy rates increased, and
consumer spending patterns normalized. There was also an increase in the property tax primarily
due to a continued strong real estate market and also from receipt of a higher tax allocation from
the Successor Agency. However, a decrease in revenue was also seen in Property taxes in lieu
($3.2 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. Investment earnings rose by $11.8 million to 5.1 million, compared to the
prior year, due to a continued rising 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.
13
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
Chart 1 shows the distribution of revenues from Governmental Activities by category.
Chart 1
Revenues by Source - Governmental Activities FY 2022-23
Governmental program expenses increased by $36.8 million, or 27.3%, in comparison to the prior
year. Increases were seen in almost all the 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 $6.9 million, from $4.7 million in the prior
year, due to repayments that began on the 2022A bonds which were issued to pay for construction
of the Aquatic Center.
14
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
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 2022-23, the net expense for governmental activities increased by $49.4 million from $53.9
million to $103.3 million, due to a $36.8 million increase in Governmental program expenses, as
previously discussed, and a $12.6 million decrease in program revenues primarily in charges for
services which included reduction in developer impact fees.
Increase / (Decrease)
2023 2022 Amount %
General government (12.9)$ (11.2)$ (1.7)$ 15.2%
Fire department (27.6) (20.7) (6.9) 33.3%
Police department (34.7) (32.0) (2.7) 8.4%
Public works department (3.1) 17.3 (20.4) (117.9%)
Recreation and community services (19.1) (15.9) (3.2) 20.1%
Library (5.7) (4.4) (1.3) 29.5%
Economic and community development 6.7 17.7 (11.0) (62.1%)
Interest on long‐term debt (6.9) (4.7) (2.2) 46.8%
Total (103.3)$ (53.9)$ (49.4)$ 91.7%
15
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
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, 2023 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 $5 million, or 3.6%, compared to
the prior year. Total assets increased slightly by $1.8 million, or 0.8%, reflecting decreases of
capital assets related primarily to regular depreciation. This was offset somewhat by higher cash
balances due to an additional $6.6 million loan drawdown from State Water Resources Board loan
and a lower receivables balance. Total liabilities, on the other hand, increased by $5.8 million due
to a higher accounts payable balance at year end and a $5.1 million higher net pension liability
due to substantial investment losses during the measurement period.
Increase / (Decrease)
2023 2022 Amount %
Cash and Investments 32.3$ 25.0$ 7.3$ 29.2%
Other assets 3.2 5.1 (1.9) (37.3%)
Capital assets 192.8 196.4 (3.6) (1.8%)
Total assets 228.3 226.5 1.8 0.8%
Deferred outflows related to pension/OPEB 7.1 3.2 3.9 121.9%
Total Deferred outflows of resources 7.1 3.2 3.9 121.9%
Long‐term liabilities outstanding 55.7 57.5 (1.8) (3.1%)
Other liabilities 36.7 29.1 7.6 26.1%
Total liabilities 92.4 86.6 5.8 6.7%
Deferred inflows related to pension/OPEB 0.2 5.3 (5.1) (96.2%)
Total deferred inflows of resources 0.2 5.3 (5.1) (96.2%)
Net position:
Net investment in capital assets 132.8 133.6 (0.8) (0.6%)
Restricted 0.0 0.0 0.0 0.0%
Unrestricted 10.1 4.3 5.8 100.0%
Total net position 142.9$ 137.9$ 5.0$ 3.6%
16
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
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 $6.5 million and Net
Pension Liability of $23 million attributable to Business-Type Activities.
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 FY2022-23 increased by $4.7 million to $33.4 million
while total revenues (program and general revenues combined) increased slightly, by $0.7 million
to $35.9 million. The total change in net position was an increase of $5 million after transfers
compared to the $7.1 million increase in net position in the prior year. Despite revenues remaining
stable in FY2022-23 and positive investment earnings, control of expenses and reduced transfers
out to other funds helped to ensure an increase in net position, albeit a lower increase than in the
prior year.
Increase / (Decrease)
2023 2022 Amount %
Expenses
Sewer Enterprise 30.6$ 26.2$ 4.4$ 16.8%
Parking District 1.3 1.2 0.1 8.3%
Storm Water 1.5 1.3 0.2 15.4%
Total expenses 33.4 28.7 4.7 16.4%
Revenues
Program Revenues
Charges for Services 25.4 24.2 1.2 5.0%
Operating and Capital grants and contributions 10.5 11.0 (0.5) (4.5%)
Total program revenues 35.9 35.2 0.7 2.0%
General revenues
Investment earnings 0.3 (0.8) 1.1 (137.5%)
Total general revenues 0.3 (0.8) 1.1 (137.5%)
Excess (deficiency) before transfers 2.8 5.7 (2.9) (50.9%)
Transfers 2.2 1.4 0.8 57.1%
Change in net position 5.0 7.1 (2.1) (29.6%)
Net position ‐ beginning 137.9 130.8 7.1 5.4%
Net position ‐ ending 142.9$ 137.9$ 5.0$ 3.6%
17
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
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, 2023, the City’s Governmental Funds reported combined fund balances of $312.0
million, a decrease of $31.6 million, or 9.21%, compared to the prior year. This was primarily due
to near completion of the bond funded capital improvement projects such as Civic Campus, Orange
Memorial Park and Street Projects. The General Fund ending fund balance, which includes
Measure W, was $88.6 million, reflecting an increase of $12 million, or 15.5%, over the prior year
primarily due to stronger revenues in most major revenue categories but also due to expenditures
being rolled over to next year.
Total Governmental Fund revenues (excluding transfers and special items) increased by $12.9
million, or 6.4%, from $201.8 million to $214.7 million, with increases in all categories except
sales tax and property taxes in lieu. City saw a steady increase of property taxes due to strong real
estate market, and investment earnings due to continue climbing interest rates and transient
occupancy taxes rebound from lifting of the travel restriction.
Total Governmental Fund expenditures (excluding transfers and special items) decreased by $3.0
million, or 1.3%, from $236.3 million in the prior year to $233.3 million in FY 2022-23. Most
departments saw increases in expenditures as public services expanded during the year as the
recovery from the pandemic continued, higher costs of materials and supplies due to high inflation.
Personnel costs remained high as a result of annual salary adjustment and increase in headcounts.
Debt service increased by $3.2 million due to principal and interest repayment beginning for the
2022A bond issuance.
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:
18
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
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 $100,000 variance)
Property taxes 43,805$ 45,805$ 2,000$ 4.6%
Sales taxes 34,791 36,191 1,400 4.0%
Transient occupancy taxes 11,161 14,161 3,000 26.9%
This revenue stream, most impacted by the pandemic imposed
travel restrictions, has demonstrated strong recovery, which led
to a $3M upward budget revision during mid-year budget cycle.
Other taxes 4,893 5,693 800 16.3%
Other taxes includes real property transfer tax, business license
and commercial parking tax. Revenue streams from new
business startups and traffic to the City continues to strengthen,
which led to increase in upward budget revision
Franchise Fee 4,600 4,600 -
Intergovernmental 2,845 4,337 1,492 52.4%
Reflects multiple federal, state and local grants applied for during
the year, adjustments for Dept of Toxic Substance Control grant,
grants to enhance Fire Department security, the Economic
Advancement Center and various other projects.
Interest and rentals 5,453 5,453 -
Licenses and permits 15,500 19,425 3,925 25.3%
Revenue from building and electric has demonstrated significant
rebound from pandemic, which led to upward budget adjustment
during mid-year.
Charges for services 8,799 8,265 (534) -6.1%
A decrease in projections for Planning division had led to a
decision to revise the budget downwards during the mid-year
review
Fines and forfeitures 711 711 -
Other 259 279 20 7.7%The increase was due to receiving support from San Mateo
County for City's Promotores Program
Total 132,817$ 144,920$ 12,103$ 9.1%
Original Final Pct Discussion:
Expenditures Budget Budget Change Change (Items of more than 5% and $100,000 variance)
City Council 259$ 260$ 1$ 0.4%
City Clerk 1,143 1,154 11 1.0%
City Treasurer 167 168 1 0.6%
City Attorney 940 940 -
City Manager 4,927 5,736 809 16.4%Increase due to receipt of DTSC grant and purchase order roll
over.
Finance 3,893 4,405 512 13.2%
Accounts for various purchase orders carried over from the
previous FY, e.g. ERP replacement project and other consultant
services.
Non-Departmental 1,544 2,153 609 39.4% Increase due to contributing additional Pension UAL payment
Human Resources 2,518 2,684 166 6.6% Roll over of purchase orders related to summer youth program
Economic and Community
Development 8,908 15,610 6,702 75.2%
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 and
Lindenville PDA
Fire 31,313 33,425 2,112 6.7%Increase due to funding for Fire boat purchase, Incentive Pay and
increase in GEMT IGT Program
Police 32,958 34,511 1,553 4.7%
Public Works 7,121 8,604 1,483 20.8%Increase was due to approval of purchase for Mini Street
Sweeper and additional consultant costs
Library 6,706 7,274 568 8.5%Adjustments for appropriations of multiple state and local grants
received for Library programs
Parks and Recreation 19,608 22,873 3,265 16.7%
Adjustments for appropriations of various projects such as
ballfield restrooms repairs, tennis courts repavement, Orange
Memorial Park Basketball court maintenance, Telia Senior
Center repair.
Total 122,005$ 139,797$ 17,792$ 14.6%
19
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
Analysis of Major Governmental Funds
General Fund
In FY 2022-23, total General Fund revenues, excluding transfers in, were $162.1 million which
was $18.1 million, or 12.6% higher than the final amended budget. Total General Fund
expenditures, excluding transfers out and including encumbrances, ended FY 2022-23 at $133.9
million which was $5.5 million, or 4.1%, lower than the final budget due to carryover of a
significant number of purchase orders.
As of June 30, 2023, the General Fund total fund balance was $88.6 million, $16.8 million of
which was attributable to Measure W. Of the remaining fund balance, $29.3 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 $42.5 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 2022-23 were $54 million, which was $8.2 million or
17.9% over final budget. primarily due to the continued strong real estate market and also from
receipt of a higher tax allocation from Successor Agency.
Sales tax revenue, including Measure W, was $37.3 million, which was $1.1 million or 3% over
final budget, reflecting steady consumer spending with high inflation price.
Transient occupancy taxes totaled $16.4 million for the year, which was $3.6 million, or 15.5%,
over the 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 $3.6 million which was $0.8 million, or 18.6%, 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 $20.5 million, which was $1 million, or 5% higher than the
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 were $11.7 million, which was $3 million or 34.78% 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.
20
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
Measure W revenue increased slightly from $15.4 million in FY2021-22 to $15.6 million in FY
2022-23 and exceeded budget by $1.9 million primarily due to the City’s prudent budget approach
to the volatile revenue category.
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 extra contribution to pension obligation
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 $129.2 million to
$142.3 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 the final budget, the General Fund ended the year with a $1.7 million
unfavorable variance.
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 2022-23, $2 million was 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.
The Capital Improvement Fund consists of 1) regular capital projects 2) Bond funded Street
Projects ($12.4 million) and 3) Bond funded Solar Projects ($4 million). The decrease in fund
balance for this fund was mainly due to draw down from bond proceeds to fund the streets projects.
21
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
The reduction in fund balance of $35 million and $12 million for the Capital Improvement for
Civic Campus and Orange Memorial Park, respectively, also resulted from significant drawdowns
from the bond proceeds for these projects. Civic Campus and Orange Ballfield were both opened
in the fall of 2023.
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 2022-23, combined
ending fund balance for Capital Improvement Funds was $86.6 million which decreased $63.2
million from the combined ending fund balance of $149.7 million in the prior year. As mentioned
above, the decrease was due to the spending down of previous bond proceeds as the new Police
Station was completed during the year, the Civic Center Campus and the Capital Improvement
Orange Memorial Park Projects were completed in the fall of 2023.
Other Governmental Funds
Presented as a group in the Basic Financial Statements, these funds are individually presented as
Supplementary Information.
It’s worth noting that impact fee funds, presented as non-major funds, received considerable
developer payments during the year owing to the high level of development activity in the City.
This includes $7.4 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, and $6.6
million in Oyster Point Development Impact Fees to be used for interchange projects in the Oyster
Point area. Also worth noting is that the city received $9 million as a Community Benefit for
building the New Fire Station.
Enterprise Funds
Sewer Enterprise Fund
The Sewer Enterprise fund reported operating revenue (before non-operating revenues and
operating transfers) of $30.1 million in FY2022-23, an increase of $1.7 million, or 6.0%, from
$28.4 million in the prior year. This increase in revenue is more water usage and therefore larger
sewer effluent volumes on which service charges are based. In addition, the revenue increase was
due to Other Cities increase in participation of Operating and Maintenance Cost sharing.
Operating expenses increased $2.1million, or 8.0%, from $ 25.8 million to $27.9 million, due to
higher payroll-related expenses.
22
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
Parking District Fund
In FY 2023, the Parking District fund reported an operating loss (before non-operating revenues
and operating transfers) of $0.2 million which was similar to the loss in the prior year of $0.2
million. Operating revenues increased by $0.7 million, or 7.0%, from $1.0 million to $1.1 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 increased by $0.1 million, or 9%, from $1.2 million to $1.3 million due to higher program
supplies.
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 $2.5 million - $0.3 million from the General Fund, $0.7 million from non-Major
Governmental Funds, and $1.5 million from the Infrastructure Reserve Fund. Operating expenses
in this fund totaled $1.5 million, an increase of $0.2 million, or 12.0%, from $1.3 million in the
prior year, primarily due to higher payroll-related expenditures. Net position increased $1.7
million from $16.8 million to $18.6 million, largely due to transfers in.
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.
23
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
At June 30, 2023, the City had $725.5 million in capital assets (as shown in table 7 below), net of
depreciation, representing a substantial increase of $63.4 million from the prior year, driven
primarily by in-progress construction projects such as the new Civic Center Campus and the
completion of the new Police Station.
The City’s various capital asset types used in Governmental and Business-Type Activities, are
illustrated in Table 7:
Table 7
Capital Assets (in Millions) at June 30
Increase / (Decrease)
2023 2022 Amount %
Governmental Activities:
Land 72.2$ 72.2$ ‐$ 0.0%
Buildings and improvements 150.6 97.4 53.2 54.6%
Equipment and vehicles 25.9 24.8 1.1 4.4%
Furniture and fixtures 2.6 2.6 0.0 0.0%
Infrastructure ‐ streets 208.3 205.6 2.7 1.3%
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 260.9 241.9 19.0 7.9%
Less accumulated depreciation (209.3) (200.3) (9.0) 4.5%
Totals 532.7$ 465.7$ 67.0$ 14.4%
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 86.2 84.0 2.2 2.6%
Less accumulated depreciation (86.3) (80.5) (5.8) 7.2%
Totals 192.8$ 196.4$ (3.6)$ (1.8%)
Total City 725.5$ 662.1$ 63.4$ 9.6%
24
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
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.
The decrease of $2.7 million in Business-Type Activities outstanding debt stems from the
drawdown of an additional $6.6 million State Water Resources Board loan and the retirement of
$5.3 million during FY 2022-23. There was also a forgiveness of $4 million in State Water
Resources Board Loan.
The largest remaining debt obligations are as follows:
-2004, 2008, 2018 State Water Resources Control Board Loans – Original debt:
$83,826,034; 1.8% to 2.5% interest rate; due 4/30/26, 7/15/28, 10/3/42. These loans
were used to improve and expand the City’s Water Quality Control Plant (WQCP).
Loan proceeds were issued as projects progressed. Debt service payment commenced
one year after project completion. WQCP user fees support the debt service payments.
Because of the regional benefits and equity interest in these projects, the City of San
Bruno shares in the loan repayments for the two of the three current loans.
Increase / (Decrease)
Governmental Activities 2023 2022 Amount %
Lease Revenue Bonds 188.4$ 191.6$ (3.2)$ 100.0%
Plus: Unamortized Bond Premium 31.8 33.2 (1.4) 100.0%
Loan payable to Successor Agency 2.1 2.2 (0.1) (4.5%)
Capital leases 0.0 0.1 (0.1) (100.0%)
Total Governmental Activities Outstanding Debt 222.3$ 227.1$ (4.8)$ (2.1%)
Business‐type Activities
State Water Resources Board loans 58.4$ 60.8$ (2.4)$ (3.9%)
2005 Sewer Bonds 1.6 2.0 (0.4) (20.0%)
Total Business‐type Activities Outstanding Debt 60.0$ 62.8$ (2.8)$ (4.5%)
25
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2023
-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 construction 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 the
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.
26
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.
27
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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) $285,835,659 $32,286,454 $318,122,113 $3,882,598
Receivables:
Accounts 17,519,645 2,878,072 20,397,717 354,694
Accrued interest 1,378,841 134,495 1,513,336
Loans 1,192,998 1,192,998
Due from Conference Center 56,072 56,072
Leases (Note 10)13,940,969 13,940,969
Deposits 309,790 309,790 38,504
Inventory 574 574
Prepaid items 1,358,284 1,358,284
Restricted cash and investments (Note 2)78,368,796 192,775 78,561,571
Properties held for redevelopment (Note 1O)2,823,118 2,823,118
Capital assets (Note 3):
Nondepreciable 333,152,532 86,985,388 420,137,920
Depreciable, net accumulated depreciation 199,550,902 105,837,920 305,388,822 2,818,855
Total Assets 935,488,180 228,315,104 1,163,803,284 7,094,651
DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 7)57,019,161 6,267,907 63,287,068
Related to OPEB (Note 9)7,615,537 846,171 8,461,708
Total Deferred Outflows of Resources 64,634,698 7,114,078 71,748,776
LIABILITIES
Accounts payable 12,796,196 753,939 13,550,135 270,580
Accrued salaries and benefits 2,697,253 2,697,253 74,573
Accrued interest payable 683,778 764,499 1,448,277
Other payables 9,417,825 244,732 9,662,557
Deposits payable 3,975,795 7,500 3,983,295 311,700
Unearned revenue 6,328,095 48,942 6,377,037
Accrued insurance losses (Note 12):
Due within one year 3,381,062 3,381,062
Due in more than one year 13,903,000 13,903,000
Compensated absences obligation (Note 1M):
Due within one year 6,059,221 656,200 6,715,421
Due in more than one year 3,084,074 281,449 3,365,523
Debt and lease financing obligations (Note 5):
Due within one year 3,320,000 4,368,201 7,688,201
Due in more than one year 218,955,229 55,698,877 274,654,106
Lease liability (Note 10):
Due within one year 359,990
Due in more than one year 1,699,888
Net pension liability - due in more than one year (Note 7) 207,355,558 23,039,506 230,395,064
Net OPEB Liability - due in more than one year (Note 9) 58,421,069 6,491,230 64,912,299
Total Liabilities 550,378,155 92,355,075 642,733,230 2,716,731
DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 7) 937,798 104,200 1,041,998
Related to OPEB (Note 9) 1,035,207 115,023 1,150,230
Related to leases (Note 10) 13,436,558 13,436,558
Total Deferred Inflows of Resources 15,409,563 219,223 15,628,786
NET POSITION (Note 6)
Net investment in capital assets 390,845,692 132,756,230 523,601,922 758,977
Restricted for:
Debt service
Special revenue projects 53,688,315 53,688,315
Capital projects 73,613,451 73,613,451
Redevelopment and community development activities 2,823,118 2,823,118
Total Restricted Net Position 130,124,884 130,124,884
Unrestricted (86,635,416) 10,098,654 (76,536,762) 3,618,943
Total Net Position $434,335,160 $142,854,884 $577,190,044 $4,377,920
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF NET POSITION
JUNE 30, 2023
29
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary Government
Governmental Activities:
General Government $24,977,978 $9,249,087 $2,830,103
Fire 36,852,200 9,231,756 19,969
Police 37,885,983 2,299,209 904,914
Public Works 21,880,934 9,071,365 7,901,412 $1,772,530
Parks and Recreation 23,539,372 3,927,532 553,268
Library 6,639,706 60,300 584,404 258,821
Economic and Community Development 12,923,609 19,532,657 125,590
Interest on long term debt 6,891,224
Total Governmental Activities 171,591,006 53,371,906 12,919,660 2,031,351
Business-type Activities
Sewer 30,654,615 23,891,045 6,237,114 4,000,000
Parking District 1,272,157 1,062,751
Storm Water 1,460,610 418,583 276,151
Total Business-type Activities 33,387,382 25,372,379 6,237,114 4,276,151
Total Primary Government $204,978,388 $78,744,285 $19,156,774 $6,307,502
Component Unit
Conference Center $3,385,350 $1,324,059
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 capital assets
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
Net Position - Ending
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
Program Revenues
30
Component Unit
South
San Francisco
Governmental Business-Type Conference
Activities Activities Total Center
($12,898,788)($12,898,788)
(27,600,475)(27,600,475)
(34,681,860)(34,681,860)
(3,135,627)(3,135,627)
(19,058,572)(19,058,572)
(5,736,181)(5,736,181)
6,734,638 6,734,638
(6,891,224)(6,891,224)
(103,268,089)(103,268,089)
$3,473,544 3,473,544
(209,406)(209,406)
(765,876)(765,876)
2,498,262 2,498,262
(103,268,089)2,498,262 (100,769,827)
($2,061,291)
47,680,587 47,680,587
37,722,042 37,722,042
16,357,104 16,357,104 1,936,096
5,240,637 5,240,637
8,059,817 8,059,817
67,937 67,937
8,760,770 8,760,770
5,104,060 291,068 5,395,128 79,389
1,807,446 1,807,446
17,335,302 17,335,302
(5,173,366)(5,173,366)
(2,195,337)2,195,337
140,766,999 2,486,405 143,253,404 2,015,485
37,498,910 4,984,667 42,483,577 (45,806)
396,836,250 137,870,217 534,706,467 4,423,726
$434,335,160 $142,854,884 $577,190,044 $4,377,920
Primary Government
Net (Expenses) Revenues and Changes in Net Position
31
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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 2023. 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.
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.
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).
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.
33
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2023
Special
Revenue
Fund Capital Projects Funds
American Capital Capital
General Rescue Capital Infrastructure Improvement
Fund Plan Act Improvement Reserve Police Station
ASSETS
Cash and investments (Note 2)$80,739,818 $6,267,552 $563,919 $20,115,363
Receivables:
Accounts 13,715,846 1,343,145
Accrued interest 423,012 114,100
Due from Conference Center 56,072
Loans
Leases (Note 10)12,759,503
Due from other funds (Note 4B)480,000
Inventory 574
Restricted cash and investments (Note 2)4,435,367 $356,833
Properties held for redevelopment (Note 1O)2,823,118
Total Assets $110,997,943 $6,267,552 $6,342,431 $20,229,463 $356,833
LIABILITIES
Liabilities:
Accounts payable $5,939,493 $589,353
Accrued salaries and benefits 2,697,253
Other payable 776,211 1,463,713 $25,049
Deposits payable 742,865
Unearned revenue $6,267,552 60,543
Due to other funds (Note 4B)380,000
Total Liabilities 10,155,822 6,267,552 2,493,609 25,049
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 1,343,145
Related to leases (Note 10)12,282,955
Total Deferred Inflows of Resources 12,282,955 1,343,145
FUND BALANCE
Fund Balances (Note 6):
Nonspendable 477,122
Restricted 2,823,118 3,509,832 331,784
Committed 20,536,653
Assigned 8,661,539 $20,229,463
Unassigned 56,060,734 (1,004,155)
Total Fund Balances (Deficits)88,559,166 2,505,677 20,229,463 331,784
Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficits) $110,997,943 $6,267,552 $6,342,431 $20,229,463 $356,833
See accompanying notes to basic financial statements
34
Capital Projects Funds
Capital
Capital Improvement Other Total
Improvement Orange Governmental Governmental
Civic Campus Memorial Park Funds Funds
$1,391,205 $25,859 $137,850,725 $246,954,441
68,871 1,935,467 17,063,329
656,631 1,193,743
56,072
1,192,998 1,192,998
1,181,466 13,940,969
480,000
574
13,890,142 59,684,993 1,461 78,368,796
2,823,118
$15,350,218 $59,710,852 $142,818,748 $362,074,040
$3,658,577 $1,433,694 $841,361 $12,462,478
2,697,253
5,918,975 473,052 583,286 9,240,286
3,232,930 3,975,795
6,328,095
100,000 480,000
9,577,552 1,906,746 4,757,577 35,183,907
68,871 1,412,016
1,153,603 13,436,558
68,871 1,153,603 14,848,574
477,122
5,703,795 57,804,106 136,907,568 207,080,203
20,536,653
28,891,002
55,056,579
5,703,795 57,804,106 136,907,568 312,041,559
$15,350,218 $59,710,852 $142,818,748 $362,074,040
35
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2023
Total fund balances reported on the governmental funds balance sheet $312,041,559
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. 527,374,934
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. 26,595,941
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 (222,275,229)
Interest payable (683,778)
Deferred outflows related pension 57,019,161
Deferred outflows related to OPEB 7,615,537
Net OPEB liability (58,421,069)
Net pension liability (207,355,558)
Deferred inflows related to OPEB (1,035,207)
Deferred inflows related to pension (937,798)
Compensated absences (7,015,349)
Net position of governmental activities $434,335,160
See accompanying notes to financial statements
36
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CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
Special
Revenue
Fund Capital Projects Funds
American Capital Capital
General Rescue Capital Infrastructure Improvement
Fund Plan Act Improvement Reserve Police Station
REVENUES
Property taxes $54,041,117
Sales taxes 37,353,784
Transient occupancy taxes 16,357,104
Franchise Fees 5,240,637
Other taxes 8,059,817
Intergovernmental 3,558,742 $1,995,741 $1,824,995
Interest and rentals 4,247,107 $235,482 $5,480
Licenses and permits 20,467,644
Charges for services 11,673,187 434,000
Fines and forfeitures 757,019
Other 353,378 449,976
Total Revenues 162,109,536 1,995,741 2,274,971 669,482 5,480
EXPENDITURES
Current:
City Council 241,596
City Clerk 1,027,822
City Treasurer 35,279
City Attorney 1,220,059
City Manager 4,107,153
Finance 3,089,869
Non-departmental 3,484,013
Human Resources 2,221,160
Fire 35,512,513
Police 36,282,833 142,478
Public Works 7,936,326 25,995,702 500
Parks and Recreation 20,362,073
Library 6,475,274
Economic and Community Development 11,770,931
Other
Capital Outlay 141,250
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 133,908,151 25,995,702 500 142,478
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 28,201,385 1,995,741 (23,720,731)668,982 (136,998)
OTHER FINANCING SOURCES (USES)
Gain from sale of property 1,852,123
Loss from sale of property (6,439,913)
Issuance of debt
Bond premium
Transfers in (Note 4C)5,283,682 10,817,102
Transfers out (Note 4C)(11,811,401) (1,995,741)(5,329,343)
Total Other Financing Sources (Uses)(11,115,509) (1,995,741) 10,817,102 (5,329,343)
Net Change in Fund Balances before special items 17,085,876 (12,903,629) (4,660,361)(136,998)
SPECIAL ITEMS
Remittance of land sale proceeds (5,173,366)
Net Change in Fund Balances 11,912,510 (12,903,629) (4,660,361)(136,998)
Fund balances (deficits) - July 1 76,646,656 15,409,306 24,889,824 468,782
Fund balances (deficits) - June 30 $88,559,166 $2,505,677 $20,229,463 $331,784
See accompanying notes to financial statements
38
Capital Projects Funds
Capital
Capital Improvement Other Total
Improvement Orange Governmental Governmental
Civic Campus Memorial Park Funds Funds
$2,400,240 $56,441,357
912,453 38,266,237
16,357,104
5,240,637
2,838,448 10,898,265
$2,504,976 9,689,823 19,574,277
636,881 $1,115,571 1,616,678 7,857,199
20,467,644
15,369,853 27,477,040
757,019
10,518,233 11,321,587
3,141,857 1,115,571 43,345,728 214,658,366
241,596
1,027,822
35,279
1,220,059
4,107,153
3,089,869
22,809 3,506,822
2,221,160
129,027 35,641,540
67,741 36,493,052
37,617,159 11,820,253 6,621,939 89,991,879
2,235,977 22,598,050
6,475,274
1,004,730 12,775,661
2,161,116 2,161,116
141,250
3,285,000 3,285,000
8,280,065 8,280,065
37,617,159 11,820,253 23,808,404 233,292,647
(34,475,302) (10,704,682)19,537,324 (18,634,281)
1,852,123
(6,439,913)
2,898,732 11,465,065 30,464,581
(3,175,615) (11,396,260) (33,708,360)
2,898,732 (3,175,615)68,805 (7,831,569)
(31,576,570) (13,880,297)19,606,129 (26,465,850)
(5,173,366)
(31,576,570) (13,880,297)19,606,129 (31,639,216)
37,280,365 71,684,403 117,301,439 343,680,775
$5,703,795 $57,804,106 $136,907,568 $312,041,559
39
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, 2023
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS ($31,639,216)
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 75,422,642
Current year depreciation (9,190,597)
Current year retirements (149,603)
Long-Term Debt Payments
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 3,285,000
Amortization of premium is added back to fund balance 1,382,613
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 (387,371)
Interest payable 6,228
Compensated absences (499,594)
Net pension liability, deferred outflows and inflows of resources (2,851,866)
Net OPEB liability, deferred outflows and inflows of resources 937,453
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.1,183,221
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $37,498,910
See accompanying notes to financial statements
The amount below included in the Statement of Activities does not require the use
40
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, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $43,804,769 $45,804,769 $54,041,117 $8,236,348
Sales taxes 34,791,018 36,191,018 37,353,784 1,162,766
Transient occupancy taxes 11,160,752 14,160,752 16,357,104 2,196,352
Franchise fees 4,600,000 4,600,000 5,240,637 640,637
Other taxes 4,893,252 5,693,252 8,059,817 2,366,565
Intergovernmental 2,844,618 4,337,199 3,558,742 (778,457)
Interest and rentals 5,453,469 4,556,469 4,247,107 (309,362)
Licenses and permits 15,500,000 19,425,400 20,467,644 1,042,244
Charges for services 8,799,097 8,265,097 11,673,187 3,408,090
Fines and forfeitures 710,824 710,824 757,019 46,195
Other 259,383 278,902 353,378 74,476
Amounts available for appropriation 132,817,182 144,023,682 162,109,536 18,085,854
Charges to appropriations (outflows):
City Council 258,749 260,650 241,596 19,054
City Clerk 1,143,342 1,154,449 1,027,822 126,627
City Treasurer 167,292 167,904 35,279 132,625
City Attorney 940,290 940,291 1,220,059 (279,768)
City Manager 4,926,619 5,735,893 4,197,204 1,538,689
Finance 3,892,875 4,405,085 3,617,322 787,763
Non-departmental 1,544,367 2,152,699 3,486,795 (1,334,096)
Human Resources 2,518,004 2,684,109 2,331,987 352,122
Fire 31,313,293 33,424,718 36,400,487 (2,975,769)
Police 32,957,662 34,511,302 36,283,110 (1,771,808)
Public Works 7,120,654 8,603,705 8,931,895 (328,190)
Parks and Recreation 19,608,365 22,873,151 22,225,939 647,212
Library 6,706,110 7,273,746 6,518,982 754,764
Economic and Community Development 8,907,770 15,609,631 15,909,963 (300,332)
Capital Outlay 141,250 (141,250)
Total charges to appropriations 122,005,392 139,797,333 142,569,690 (2,772,357)
OTHER FINANCING SOURCES (USES)
Gain from sale of property 897,000 1,852,123 955,123
Loss from sale of property (6,439,913) (6,439,913)
Transfers in (Note 4C) 3,245,000 6,151,400 5,283,682 (867,718)
Transfers out (Note 4C) (13,344,450) (28,153,088) (11,811,401) 16,341,687
Total Other Financing Sources (Uses) (10,099,450) (21,104,688) (11,115,509) 9,989,179
712,340 (16,878,339) 8,424,337 25,302,676
SPECIAL ITEM
Remittance of land sale proceeds (5,173,366) (5,173,366)
NET CHANGE IN FUND BALANCE $712,340 ($16,878,339) 3,250,971 $20,129,310
Fund Balance - July 1 76,646,656
Adjustment to budgetary basis:
Encumbrance adjustments 8,661,539
Fund Balance - June 30 $88,559,166
See accompanying notes to financial statements
Budgeted Amounts
NET CHANGE IN FUND BALANCES BEFORE SPECIAL ITEM
41
Variance with
Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:
Intergovernmental $2,270,000 $2,270,000 $1,995,741 ($274,259)
Total Revenues 2,270,000 2,270,000 1,995,741 (274,259)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 2,270,000 2,270,000 1,995,741 (274,259)
OTHER FINANCING SOURCES (USES)
Transfers out (Note 4C) (2,270,000) (4,025,750) (1,995,741) 2,030,009
NET CHANGE IN FUND BALANCE ($1,755,750) $1,755,750
Fund balance - July 1
Fund balance - June 30
See accompanying notes to financial statements
Budgeted Amounts
CITY OF SOUTH SAN FRANCISCO
AMERICAN RESCUE PLAN ACT
SPECIAL REVENUE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2023
42
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.
43
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2023
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)$25,369,673 $3,460,545 $3,456,236 $32,286,454 $38,881,218
Receivables:
Accounts 2,432,572 9,281 436,219 2,878,072 456,316
Accrued interest 97,652 18,421 18,422 134,495 185,098
Deposits 309,790
Prepaid items 1,358,284
Restricted cash and investments (Note 2)192,775 192,775
Total current assets 28,092,672 3,488,247 3,910,877 35,491,796 41,190,706
Noncurrent assets:
Capital assets (Note 3):
Nondepreciable 73,310,803 421,149 13,253,436 86,985,388
Depreciable, net accumulated depreciation 95,039,129 9,259,353 1,539,438 105,837,920 5,328,500
Total non-current assets 168,349,932 9,680,502 14,792,874 192,823,308 5,328,500
Total Assets 196,442,604 13,168,749 18,703,751 228,315,104 46,519,206
DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 7)6,267,907 6,267,907
Related to OPEB (Note 9)846,171 846,171
Total Deferred Outflows of Resources 7,114,078 7,114,078
LIABILITIES
Current liabilities:
Accounts payable 679,554 8,692 65,693 753,939 333,718
Other payable 244,664 63 5 244,732 177,539
Accrued interest payable 764,499 764,499
Deposits payable 7,500 7,500
Unearned revenue 48,942 48,942
Due to other funds (Note 4B)
Accrued insurance loss (Note 12)3,381,062
Compensated absences obligation (Note 1M)616,326 5,641 34,233 656,200 1,294,533
Current portion of long-term debt (Note 5)4,368,201 4,368,201
Total current liabilities 6,729,686 14,396 99,931 6,844,013 5,186,852
Noncurrent liabilities:
Accrued insurance losses (Note 12)13,903,000
Compensated absences obligation (Note 1M)267,010 10,226 4,213 281,449 833,413
Noncurrent portion of long-term debt (Note 5)55,698,877 55,698,877
Net pension liability (Note 7)23,039,506 23,039,506
Net OPEB liability (Note 9)6,491,230 6,491,230
Total noncurrent liabilities 85,496,623 10,226 4,213 85,511,062 14,736,413
Total Liabilities 92,226,309 24,622 104,144 92,355,075 19,923,265
DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 7)104,200 104,200
Related to OPEB (Note 9)115,023 115,023
Total Deferred Inflows of resources 219,223 219,223
NET POSITION:
Net investment in capital assets 108,282,854 9,680,502 14,792,874 132,756,230 5,328,500
Unrestricted (deficit)2,828,296 3,463,625 3,806,733 10,098,654 21,267,441
Total Net Position $111,111,150 $13,144,127 $18,599,607 $142,854,884 $26,595,941
See accompanying notes to financial statements
44
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds
OPERATING REVENUES
Charges for services $23,180,130 $414,183 $23,594,313 $31,348,296
Other cities' participation 6,237,114 6,237,114
Permit fees 710,915 710,915
Parking fees $1,062,751 1,062,751
Total Operating Revenues 30,128,159 1,062,751 414,183 31,605,093 31,348,296
OPERATING EXPENSES
Personnel expenses 10,988,476 346,813 1,207,382 12,542,671 19,852,051
Professional services 2,038,173 284,836 79,489 2,402,498 1,132,997
OPEB Expenses 535,040 1,448 536,488
Program supplies 2,054,330 147,099 57,965 2,259,394 2,244,118
Insurance 210,870 3,698 214,568 2,890,694
Self-insurance and claims 2,807,004
Repair and maintenance 1,402,551 6,003 1,408,554 1,065,000
Rents 1,689,059 1,689,059
Utilities 1,867,151 126,330 17,351 2,010,832 104,991
Administration 1,590,725 113,007 48,535 1,752,267
Depreciation 5,475,767 252,624 33,651 5,762,042 1,045,253
Other 23,346 6,536 29,882 618,144
Total Operating Expenses 27,875,488 1,272,157 1,460,610 30,608,255 31,760,252
Operating Income (Loss)2,252,671 (209,406) (1,046,427)996,838 (411,956)
NONOPERATING REVENUES (EXPENSES)
Loan forgiveness (Note 5)4,000,000 4,000,000
Interest income 215,397 38,129 37,542 291,068 380,178
Gain on dispositions of capital assets 104,926
Interest expense (2,779,127)(2,779,127)(2,870)
Other 4,400 4,400 64,501
Total Nonoperating Revenues (Expenses)1,436,270 38,129 41,942 1,516,341 546,735
Income (loss) before contributions and transfers 3,688,941 (171,277) (1,004,485) 2,513,179 134,779
TRANSFERS
Capital subventions and grants 276,151 276,151
Transfers in (Note 4C)3,000 2,000 2,494,778 2,499,778 1,048,442
Transfers (out) (Note 4C)(304,441)(304,441)
Change in Net Position 3,387,500 (169,277) 1,766,444 4,984,667 1,183,221
Net Position (Deficits) - July 1 107,723,650 13,313,404 16,833,163 137,870,217 25,412,720
Net Position (Deficits) - June 30 $111,111,150 $13,144,127 $18,599,607 $142,854,884 $26,595,941
See accompanying notes to financial statements
45
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
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 $31,312,569 $1,053,470 $3,697,332 $36,063,371
Cash payments to suppliers for goods and services (12,293,207) (679,993) (175,764) (13,148,964) ($7,535,837)
Cash payments to employees for services (10,573,920) (331,286) (1,209,620) (12,114,826) (20,265,596)
Cash received from interfund service provided 30,956,481
Cash payments for judgments and claims (2,006,200)
Net Cash Provided by (Used in) Operating Activities 8,445,442 42,191 2,311,948 10,799,581 1,148,848
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts (630,000) (630,000)
Transfers in 3,000 2,000 2,494,778 2,499,778 1,048,442
Transfers in (304,441)(304,441)
Net Cash Provided by Noncapital Financing Activities (301,441)2,000 1,864,778 1,565,337 1,048,442
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Proceeds from issuance of debt 2,991,637 2,991,637
Principal paid on long-term debt (5,312,308)(5,312,308)(144,637)
Interest paid on long-term debt (393,601)(393,601)(2,870)
Subventions and grants 276,151 276,151
Acquisition of capital assets, net (1,834,441)(1,020,995) (2,855,436) (1,979,957)
Proceeds from the sale of capital assets 113,687
Net Cash Used in Capital and Related Financing Activities (4,548,713)(744,844) (5,293,557) (2,013,777)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received (paid)56,697 8,028 (3,165)61,560 76,260
Changes in fair value of investments 118,127 22,284 22,285 162,696 223,912
Net Cash Provided by Investing Activities 174,824 30,312 19,120 224,256 300,172
Net Increase (Decrease) in cash and cash equivalents 3,770,112 74,503 3,451,002 7,295,617 483,685
Cash and cash equivalents, beginning 21,792,336 3,386,042 5,234 25,183,612 38,397,533
Cash and cash equivalents, ending $25,562,448 $3,460,545 $3,456,236 $32,479,229 $38,881,218
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)$2,252,671 ($209,406) ($1,046,427) $996,838 ($411,956)
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation 5,475,767 252,624 33,651 5,762,042 1,045,253
Other non-operating revenue (expenses)4,400 4,400 64,501
Net change in assets and liabilities:
Accounts and lease receivables 1,168,495 (9,281) 3,278,749 4,437,963 (456,316)
Deposit
Prepaid items (153,911)
Accounts payable 126,737 (7,336)43,811 163,212 (66,577)
Other payable (1,008,699)63 2 (1,008,634)148,243
Unearned revenue 15,915 15,915
Accrued insurance losses 800,804
(Decrease) increase due to retirement system 384,430 384,430
(Decrease) increase due to OPEB (104,162)(104,162)
Compensated absence obligations 134,288 15,527 (2,238) 147,577 178,807
Net Cash Provided by (Used in) Operating Activities $8,445,442 $42,191 $2,311,948 $10,799,581 $1,148,848
NONCASH TRANSACTIONS
Retirement of capital assets ($8,761)
Forgiveness of SWRCB loan $4,000,000 $4,000,000
Interest accrued to principal on SWRCB loan ($1,831,943)($1,831,943)
See accompanying notes to basic financial statements
46
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.
47
Successor
Agency
Private Purpose
Trust Fund Custodial Funds
ASSETS
Cash and investments (Note 2) $20,617 $95,626
Accounts receivable 141,362
Interest receivable 18,417 1,399
Prepaid items
Advances to the City (Note 5) 2,050,152
Loans receivable (Note 14B) 80,572
Restricted cash and investments (Note 2) 21,245,798 2,255,699
Capital assets (Note 14C):
Nondepreciable 111,219
Depreciable, net accumulated depreciation 231,531
Total Assets 23,899,668 2,352,724
LIABILITIES
Accounts payable 33,991
Total Liabilities 33,991
NET POSITION
Held in trust for other purposes 23,865,677
Restricted for others 96,245
Restricted for bondholders 2,256,479
Total Net Position $23,865,677 $2,352,724
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2023
48
CITY OF SOUTH SAN FRANCISCO
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
Successor
Agency
Private Purpose
Trust Fund Custodial Funds
ADDITIONS
Property taxes $1,013,213
Intergovernmental $6,168,452
Plan contributions 8,225
Interest and rentals 387,064 542,489
Other 141,391
Total Additions 6,696,907 1,563,927
DEDUCTIONS
Economic and Community Development 7,000,293
Professional services 18,805,663
Payments to bondholders 764,850
Depreciation 6,593
Total Deductions 7,006,886 19,570,513
Change in net position (309,979) (18,006,586)
NET POSITION
Beginning of the year 24,175,656 20,359,310
End of the year $23,865,677 $2,352,724
See accompanying notes to financial statements
49
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CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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 2023. 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.
51
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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.South San Francisco Housing Authority
The South San Francisco Housing Authority was established by the City of South San
Francisco in 1955 under the provisions of the State Health and Safety Code to address a shortage
of low income housing in the City. Although the City Council appoints the Authority
Commissioners, the City Council can only remove those appointed Commissioners for
inefficiency, neglect of duty or misconduct. The Housing Authority operates independent of the
City and the City is not financially accountable for the Housing Authority. Therefore, the
operations of the Housing Authority are not included in the financial reporting entity of the City.
E. 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.
52
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
F. 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.
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.
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).
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.
53
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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 include
the Employee Deferred Comp Trust Oversight Fund and the Community Facilities District 2021-
01, which accounted for payments of special assessment bonds.
54
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. 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 and right to use
subscription 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.
55
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
H. 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, Affordable Housing Trust Special Revenue Fund and Transit Station
Enhancement In-Lieu Fee Special Revenue Fund; 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, 2023.
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.
56
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
I.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, 2023:
Expenditures in
Excess of Budget
(Non GAAP
Legal Basis)
General Fund:
City Attorney $279,768
Non-departmental 1,334,096
Fire 2,975,769
Police 1,771,808
Public Works 328,190
Economic and Community Development 300,332
Capital Outlay 141,250
Non-Major Funds:
Supplemental Law Enforcement Services Special Revenue Fund 67,741
City Programs Special Revenue Fund 550,723
PEG Equipment and Access Special Revenue Fund 17,209
Debt Service Fund 3,175,615
Sufficient resources were available within each fund to finance these excesses.
J. 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.
K.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.
L.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 and intangible right to use subscription assets, the measurement of which is discussed in
Note 1R 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.
57
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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.
M. 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 $8,464,894 $790,072 $9,254,966
Additions 6,754,728 806,022 7,560,750
Payments (6,076,327) (658,445) (6,734,772)
Ending Balance $9,143,295 $937,649 $10,080,944
Current Portion $6,059,221 $656,200 $6,715,421
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.
58
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
N.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.
O.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).
P. Unbilled Services – for the Sewer Rental Enterprise Fund are accrued at year-end.
Q.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.
59
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
R. 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.
S.Subscription Based Information Technology Arrangements (SBITAs)
A SBITA is a contract that conveys control of the right to use another party’s (a SBITA vendor’s)
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.
At the commencement of a SBITA, the City initially measures the subscription liability at the
present value of payments expected to be made during the contract term. Subsequently, the
subscription liability is reduced by the principal portion of payments made. The subscription asset
is initially measured as the initial amount of the subscription liability, adjusted for payments
made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently,
the subscription asset is amortized on a straight‐line basis over shorter of the subscription term or
the useful life of the underlying IT assets. The City recognizes subscription asset with an initial,
individual value of $1,000,000 or more, based on the present value of future subscription
payments remaining at the start of the agreement.
Key estimates and judgments related to SBITAs include how the City determines (1) the discount
rate it uses to discount the expected subscription payments to present value, (2) subscription term,
and (3) subscription payments as follows:
•The City uses the interest rate charged by the IT vendor as the discount rate. When the
interest rate charged by the IT vendor is not provided, the City generally uses its
estimated incremental borrowing rate as the discount rate for subscription liabilities.
•The subscription term includes the noncancellable period of the subscription.
The City monitors changes in circumstances that would require a remeasurement of its
subscription and will remeasure the subscription asset and liability if certain changes occur that
are expected to significantly affect the amount of the subscription liability.
Subscription assets are reported with other capital assets and subscription liabilities are reported
in the statement of net position.
60
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
T. 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.
U. New Funds
In fiscal year 2022-2023, the City established the following funds:
The Public Arts In-Lieu Fee Special Revenue Fund accounts for development fee revenues that
are collected and are required to be used for public art installations.
The Oyster Point CFD Special Tax B Special Revenue Fund accounts for special assessment
collections that are to be used for maintenance and administrative fees of the community facilities
district.
V. New Accounting Pronouncement
GASB Statement No. 96 – In May 2020, GASB issued Statement No. 96, Subscription-Based
Information Technology Arrangements. The objective of this Statement is to provide 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.. The provisions of this Statement were
implemented during fiscal year 2023. The implementation had no effect on the financial
statements.
GASB Statement No. 94 – In March 2020, GASB issued Statement No. 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. The provisions of this Statement were implemented
during fiscal year 2023. The implementation had no effect on the financial statements.
61
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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.
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, 2023 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 $318,122,113
Restricted cash and investments 78,561,571
Total Primary Government cash and investments 396,683,684
Statement of Fiduciary Net Position:
Cash and investments available for operations 116,243
Restricted cash and investments 23,501,497
Total Fiduciary cash and investments 23,617,740
Conference Center:
Cash and investments available for operations 3,882,598
Total South San Francisco
Conference Center cash and investments 3,882,598
Total cash and investments $424,184,022
62
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
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.
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. Government
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
63
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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.
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.
64
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 2 – CASH AND INVESTMENTS (Continued)
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 $223,922 $58,289,279 $58,513,201
U.S. Treasury Bills 67,543,129 67,543,129
Federal Agency Securities 3,097,484 50,280,270 53,377,754
Local Agency Investment Fund 108,562,894 108,562,894
Money Market Funds 35,086,693 35,086,693
Corporate Medium Term Notes 7,332,998 47,489,676 54,822,674
Negotiable Certificates of Deposit 3,994,592 3,994,592
Asset-Backed Securities 3,582,332 14,745,219 18,327,551
Supranational Obligations 6,093,964 6,093,964
South San Francisco Conference Center:
Local Agency Investment Fund 3,505,040 3,505,040
Total Investments $232,929,084 $176,898,408 409,827,492
Cash in Banks and on Hand - City of South San Francisco 13,978,972
Cash in Banks and on Hand - South San Francisco Conference Center 377,558
Total Cash and Investments $424,184,022
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, 2023, these investments have an
average maturity of 260 days.
Money market funds are available for withdrawal on demand and as of June 30, 2023 have an
average maturity of 13 to 26 days.
65
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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, 2023, 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 $53,377,754 $53,377,754
Money Market Funds $35,086,693 35,086,693
Corporate Medium Term Notes 4,721,012 $10,400,108 $39,701,554 54,822,674
Negotiable Certificates of Deposit $3,994,592 3,994,592
Asset-Backed Securities 9,853,700 9,853,700
Supranational Obligations 6,093,964 6,093,964
Totals $74,046,430 35,086,693$ 10,400,108$ 39,701,554$ 3,994,592$ 163,229,377
City and Fiduciary:Not rated:
Asset-Backed Securities 8,473,851 (A)
Local Agency Investment Fund 108,562,894
Exempt from credit rating disclosure:
U.S. Treasury Notes 58,513,201
U.S. Treasury Bills 67,543,129
Not rated:
Local Agency Investment Fund 3,505,040
Total Investments $409,827,492
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.
66
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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, 2023:
Level 2 Total
Investments by Fair Value Level:
City and Fiduciary:
U.S. Treasury Notes $58,513,201 $58,513,201
U.S. Treasury Bills 67,543,129 67,543,129
Federal Agency Securities 53,377,754 53,377,754
Corporate Medium Term Notes 54,822,674 54,822,674
Negotiable Certificates of Deposit 3,994,592 3,994,592
Asset Backed Securities 18,327,551 18,327,551
Supranational Obligations 6,093,964 6,093,964
Totals $262,672,865 262,672,865
Investments Measured at Amortized Cost:
City and Fiduciary:
Money Market Mutual Funds 35,086,693
Investments Exempt from Fair Value Hierarchy:
City and Fiduciary:
Local Agency Investment Fund 108,562,894
South San Francisco Conference Center:
Local Agency Investment Fund 3,505,040
Total Investments $409,827,492
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.
67
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 3 – CAPITAL ASSETS
A.Capital Asset Changes – Changes in capital assets during the fiscal year consist of:
Balance
June 30, 2022 Additions Retirements Transfers
Balance
June 30, 2023
Governmental activities
Capital assets not being depreciated:
Land $72,249,423 ($11,195)$72,238,228
Construction in Progress 241,858,363 $75,281,392 ($56,225,451) 260,914,304
Total capital assets not being depreciated 314,107,786 75,281,392 (11,195) (56,225,451) 333,152,532
Capital assets being depreciated:
Buildings and Improvements 97,370,638 (350,681) 53,472,577 150,492,534
Infrastructure - Streets 205,595,834 2,752,874 208,348,708
Infrastructure - Storm Drains 8,927,492 8,927,492
Infrastructure - Traffic Control Devices 12,591,370 12,591,370
Equipment and Vehicle 7,390,599 141,250 (148,921)7,382,928
Furniture and Fixtures 2,614,215 2,614,215
Total capital assets being depreciated 334,490,148 141,250 (499,602) 56,225,451 390,357,247
Less accumulated depreciation for:
Buildings and Improvements (47,449,864) (3,081,797) 212,273 (50,319,388)
Infrastructure - Streets (121,685,176) (5,271,961)(126,957,137)
Infrastructure - Storm Drains (4,184,561) (204,500)(4,389,061)
Infrastructure - Traffic Control Devices (5,240,019) (503,305)(5,743,324)
Equipment and Vehicle (6,767,147) (48,987) 148,921 (6,667,213)
Furniture and Fixtures (1,978,675) (80,047)(2,058,722)
Total accumulated depreciation (187,305,442) (9,190,597) 361,194 (196,134,845)
Net Governmental Fund
Capital Assets Being Depreciated 147,184,706 (9,049,347) (138,408)56,225,451 194,222,402
Internal Service Fund Capital Assets
Capital assets being depreciated:
Equipment and Vehicle 17,378,330 1,979,957 (855,261)18,503,026
Accumulated depreciation (12,975,773) (1,045,253) 846,500 (13,174,526)
Net Internal Service Fund Capital Assets
Being Depreciated 4,402,557 934,704 (8,761)5,328,500
Governmental activities capital assets, net $465,695,049 $67,166,749 ($158,364)$532,703,434
Total capital assets not being depreciated $314,107,786 $75,281,392 ($11,195) ($56,225,451) $333,152,532
Net capital assets being depreciated 151,587,263 (8,114,643) (147,169)56,225,451 199,550,902
Governmental activities capital assets, net $465,695,049 $67,166,749 ($158,364)$532,703,434
68
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 3 – CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2022 Additions June 30, 2023
Business-type activities
Capital assets, not being depreciated:
Land $794,587 $794,587
Construction in Progress 83,983,455 $2,207,346 86,190,801
Total capital assets not being depreciated 84,778,042 2,207,346 86,985,388
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 (24,872,437) (2,052,556) (26,924,993)
Clean Water Facilities and Lines (36,990,806) (2,649,003) (39,639,809)
Infrastructure - Storm Drains (1,758,712) (187,980) (1,946,692)
Infrastructure - Streets (2,678,971) (209,570) (2,888,541)
Equipment and Vehicle (14,183,722) (662,933) (14,846,655)
Furniture and Fixtures (31,154)(31,154)
Total accumulated depreciation (80,515,802) (5,762,042) (86,277,844)
Net capital assets being depreciated 111,599,962 (5,762,042) 105,837,920
Business-type activities capital assets, net $196,378,004 ($3,554,696) $192,823,308
Balance Balance
June 30, 2022 Additions Retirements June 30, 2023
Component Unit:
South San Francisco Conference Center
Depreciable:
Buildings and Improvements $10,909,288 $19,250 $10,928,538
Furniture and Fixtures 932,393 932,393
Machinery and Equipment 599,715 599,715
Total Depreciable 12,441,396 19,250 12,460,646
Right of Use Assets:
Leased Land 8,351,928 8,351,928
20,793,324 19,250 20,812,574
Less accumulated depreciation and
amortization
Depreciable (10,455,226) (578,553)(11,033,779)
Leased Land (6,681,543) (278,397)(6,959,940)
(17,136,769) (856,950)(17,993,719)
Component Unit Capital Assets, Net $3,656,555 ($837,700)$2,818,855
69
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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 $722,769
Fire 314,162
Police 562,031
Public works 6,926,349
Parks and recreation 555,222
Library 58,455
Economic and community development 51,609
Total Governmental Functions 9,190,597
Internal Service Funds 1,045,253
Total Governmental Activities $10,235,850
Business-Type Activities
Sewer Enterprise $5,475,767
Parking District 252,624
Storm Water 33,651
Total Business-Type Activities $5,762,042
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.
70
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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 $380,000
Community Development Block Grant Special Revenue Fund 100,000
$480,000
C.Transfers
Transfers between funds during the fiscal year ended June 30, 2023 were as follows:
FROM FUND (OUT) TO FUND (IN)AMOUNT
General Fund Capital Improvement Capital Projects Fund $1,743,360
Capital Improvement Civic Campus Capital Projects Fund 1,078,591
Storm Water Enterprise Fund 250,000
Non-Major Governmental Funds 8,289,450
Retiree Health Benefits Internal Service Fund 450,000
American Rescue Plan Act Fund General Fund 1,970,000
Capital Improvement Capital Projects Fund 25,741
Capital Infrastructure Reserve Capital Projects Fund General Fund 2,056,400
Capital Improvement Capital Projects Fund 1,717,943
Sewer Enterprise Fund 3,000
Parking District Enterprise Fund 2,000
Storm Water Enterprise Fund 1,550,000
Capital Improvements Orange Memorial Park Non-major Governmental Funds 3,175,615
Non-Major Governmental Funds General Fund 1,257,282
Capital Improvement Capital Projects Fund 7,025,617
Storm Water Enterprise Fund 694,778
Equipment Replacement Internal Service Fund 598,442
Capital Improvement Civic Campus Capital Projects Fund 1,820,141
Sewer Enterprise Fund Capital Improvement Capital Projects Fund 304,441
Total $34,012,801
71
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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, 2023 follows:
Authorized
and Balance at Balance at Current
Issued June 30, 2022 Additions Retirement June 30, 2023 Portion
Governmental ActivitiesLease Revenue Bonds:
2020A Police Station Project, 4.00 to 5.00% (1)$43,905,000 $41,990,000 $1,030,000 $40,960,000 $1,080,000
Plus: Unamortized bond premium 9,104,471 379,353 8,725,118
2021A Community Civic Campus Project, 4.00% (2)86,410,000 84,200,000 2,155,000 82,045,000 2,240,000
Plus: Unamortized bond premium 17,391,902 724,663 16,667,239
2022A Orange Memorial Park Project, 4.00 to 5.25% (3)65,420,000 65,420,000 65,420,000
Plus: Unamortized bond premium 6,686,317 278,597 6,407,720
Total Lease Revenue Bonds 195,735,000 224,792,690 4,567,613 220,225,077 3,320,000
Direct Borrowing:
2007 Loans Payable to the Successor Agency (4) 2,150,152 100,000 2,050,152
Leases Financings (5):
2013 Fire Truck 144,637 144,637
Total Leases Financings 144,637 144,637
Total Direct Borrowing 2,294,789 244,637 2,050,152
Net Governmental Long-Term Debt $195,735,000 $227,087,479 $4,812,250 $222,275,229 $3,320,000
Business-Type Activities Revenue Bonds:
2005 Water and Wastewater Revenue Bonds, $6,000,000 $1,980,000 $360,000 $1,620,000 $375,000
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 3,190,468 3,190,4682004 State Water Resources Loan, 2.5%, due 1/1/27 (7) 21,258,529 5,274,483 1,270,190 4,004,293 1,301,944
2008 State Water Resources Loan, 2.4%, (8) 9,164,505 3,699,492 491,650 3,207,842 503,449
2018 State Water Resources Loan, 1.8% (9) 53,403,000 48,635,007 $6,599,936 4,000,000 51,234,943 2,187,808
Total Direct Borrowing 131,547,286 60,799,450 6,599,936 8,952,308 58,447,078 3,993,201
Net Business-Type Long-Term Debt $137,547,286 $62,779,450 $6,599,936 $9,312,308 $60,067,078 $4,368,201
(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.
72
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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, 2023, 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 $2,050,152 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.
73
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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. The final payment on the lease financing agreements was made during the
year ended June 20, 2023.
(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, 2023, 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 $7.9 million which represented coverage of 1.52
over the $5,218,915 in total debt service.
(7) Two loans were authorized by the State Water Resources Control Board (SWRCB) in
1999 and 2004 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. The final payment on
the 1999 loan agreement was made during the year ended June 30, 2023.
(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.
74
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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,
was anticipated to be forgiven on the date of completion of construction. Construction was
completed in October 2022, and the $4 million was forgiven during the year ended June 30, 2023.
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, 2023, the City has completed the drawn down from SWRCB. There was no debt
service payment required in fiscal year 2023, 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
$23.2 million which represented coverage of 43 over the $543,443 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
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 5,910,000 7,322,988
2029-2033 33,620,000 32,540,187
2034-2038 41,590,000 24,572,888
2039-2043 51,355,000 14,805,087
2044-2048 36,400,000 3,295,475
188,425,000 $114,207,525 $1,620,000 $167,000
Plus: Unamortized bond premium 31,800,077
$220,225,077
75
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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 at June 30, 2023, were as follows:
For the Year Governmental Activities Business-Type Activities
Ended June 30 Principal Interest Principal Interest
2024 $3,993,201 $1,028,116
2025 4,038,083 988,269
2026 4,123,204 908,305
2027 2,808,110 826,622
2028 2,861,900 778,239
2029-2033 12,747,012 3,182,288
2034-2038 13,316,573 2,037,956
2039-2043 14,558,995 795,535
Totals 58,447,078 $10,545,330
2007 Loans Payable $2,050,152
$2,050,152 $58,447,078
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, 2023, that amount was $1,039,891,525. As of June 30, 2023,
the City did not have any outstanding debt applicable to the limit.
76
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 5 – LONG-TERM DEBT (Continued)
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, 2023 the outstanding balance of the issue was $19,685,000.
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.
77
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 6 – NET POSITION AND FUND BALANCE (Continued)
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.
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, 2023, are below:
Capital Project Funds
Capital Capital Capital
General Capital Infrastructure Improvements Improvements
Fund Balance Classifications Fund Improvement Reserve Fund Police Station Civic Campus
Nonspendables:
Items not in spendable form:
Inventory and prepaid items $574
Leases 476,548
Total Nonspendable Fund Balances 477,122
Restricted for:
Civic campus projects $3,509,832 $5,703,795
Police station projects $331,784
Redevelopment and community development activities 2,823,118
Total Restricted Fund Balances 2,823,118 3,509,832 331,784 5,703,795
Committed for:
Capital projects 3,775,873
Local services 16,760,780
Total Committed Fund Balances 20,536,653
Assigned to:
Capital projects 8,661,539
Capital infrastructure projects $20,229,463
Total Assigned Fund Balances 8,661,539 20,229,463
Unassigned:
General fund 56,060,734
Other fund deficits (1,004,155)
Total Unassigned Fund Balances 56,060,734 (1,004,155)
Total Fund Balances $88,559,166 $2,505,677 $20,229,463 $331,784 $5,703,795
78
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 6 – NET POSITION AND FUND BALANCE (Continued)
Capital
Projects
Fund
Capital
Improvements Other
Orange Governmental
Fund Balance Classifications (continued) Memorial Park Funds
Restricted for:
Civic campus projects $57,804,106
Gas Tax projects $498,414
Developer contributions projects 8,829,153
Community Development Block Grant projects 44,105
Maintenance districts projects 5,190,723
Transportation sales tax projects 5,678,973
City programs projects 19,935,351
Low and moderate housing projects 2,942,263
Other Special Revenues projects 10,569,333
Capital projects activities 83,219,253
Total Restricted Fund Balances 57,804,106 136,907,568
Total Fund Balances $57,804,106 $136,907,568
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, 2023, were as listed below:
Governmental funds:Amount
General Fund $8,663,789
Capital Improvement Capital Projects Fund 24,244,690
Capital Infrastructure Reserve Capital Projects Fund 1,617,350
Capital Improvements Police Station Capital Projects Fund 247,048
Capital Improvements Civic Campus Capital Projects Fund 9,970,796
Capital Improvements Orange Memorial Park 4,057,041
Other Governmental Funds 2,901,566
Total $51,702,280
79
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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.
80
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 7 – PENSION PLAN (Continued)
The Plans’ provisions and benefits in effect at June 30, 2023, 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 - 63 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 9.53% 9.53% 9.53%
Required Unfunded Actuarial Liability Contribution $7,533,535
* 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 20.45% 20.45% 20.45%
Required Unfunded Actuarial Liability Contribution $10,143,798
** 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, 2023
were $7,533,535 and $10,143,798, respectively, which were made under the lump sum payment
option. In addition, the City made additional contributions toward the unfunded liability of
$304,000 to each Plan during the year ended June 30, 2023.
Employees Covered – As of the June 30, 2021 actuarial valuation date and the June 30, 2022
measurement date, the following employees were covered by the benefit terms for the Plans:
Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 496 315
Inactive employees entitled to but not yet receiving benefits 393 99
Active employees 287 152
Total 1,176 566
81
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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. Payments made by the City to satisfy contribution
requirements that are identified by the Plan terms as Plan member contribution requirements are
classified as Plan member contributions.
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, 2022, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30,
2022 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, 2022 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)
6/30/2021
6/30/2022
Entry-Age Normal Cost Method
6.90%
(4) The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are
based on the 2021CalPERS Experience Study forthe period from2001to 2019. Pre-retirement and post-retirement
mortality rates include generationalmortality improvement using 80% of Scale MP-2020 published by the Society
ofActuaries. Formore details on this table,please referto the CalPERSExperience Study and Review ofActuarial
Assumptions report from November 2021 that can be found on the CalPERS website.
2.30%
(2)
6.90% (3)
The lesser of contract COLA or 2.30% until Purchasing Power Protection
Allowance Floor on Purchasing Power applies, 2.30% thereafter
Derived using CalPERS Membership Data for all Funds (4)
2.80%
82
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 7 – PENSION PLAN (Continued)
The underlying mortality assumptions and all other actuarial assumptions used in the June 30,
2021 valuation were based on the results of a November 2021 actuarial experience study for the
period 2001 to 2019. 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 6.90%. 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 benefit
payments of current plan members for all plans in the PERF. Therefore, the long- term expected
rate of return on plan investments was applied to all periods of projected benefit payments to
determine the total pension liability 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. Using historical returns of all the fund’s asset classes,
expected compound (geometric) returns were calculated over the next 20 years using a building-
block approach. The expected rate of return was then adjusted for assumed administrative
expenses of 10 basis points.
83
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 7 – PENSION PLAN (Continued)
The expected real rates of return by asset class are as follows:
Asset Class (a)
Assumed
Asset
Allocation
Real Return
(a), (b)
Global Equity-Cap Weighted 30.0% 4.54%
Global Equity-Non-Cap Weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100%
(a) An expected inflation of 2.30% used for this period.
(b)Figures are based on the 2021 Asset Liability Management study.
Changes of Assumptions – Effective with the June 30, 2021 valuation date (2022 measurement
date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-
term expected rate of return, CalPERS took into account long-term market return expectations as
well as the expected pension fund cash flows. Projected returns for all asset classes are estimated,
combined with risk estimates, and are used to project compound (geometric) returns over the long
term. The discount rate used to discount liabilities was informed by the long-term projected
portfolio return. In addition, demographic assumptions and the inflation rate assumption were
changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial
Assumptions.
84
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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, 2021 (Measurement Date)$264,236,232 $202,373,505 $61,862,727
Changes in the year:
Service cost 4,896,807 4,896,807
Interest on the total pension liability 18,379,820 18,379,820
Changes of benefit terms
Changes of assumptions 7,856,877 7,856,877
Differences between actual and expected experience (893,635) (893,635)
Plan to plan resource movement
Contribution - employer 9,491,964 (9,491,964)
Contribution - employees 2,293,651 (2,293,651)
Net investment income (15,367,557) 15,367,557
Benefit payments, including refunds of employee
contributions (14,547,349) (14,547,349)
Administrative expenses (126,067) 126,067
Other Miscellaneous Income/(Expense)
Net changes 15,692,520 (18,255,358) 33,947,878
Balance at June 30, 2022 (Measurement Date)$279,928,752 $184,118,147 $95,810,605
Safety Plan:
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2021 (Measurement Date)$376,140,913 $293,624,138 $82,516,775
Changes in the year:
Service cost 7,567,350 7,567,350
Interest on the total pension liability 26,419,737 26,419,737
Changes of benefit terms
Changes of assumptions 12,584,955 12,584,955
Differences between actual and expected experience (684,769)(684,769)
Plan to plan resource movement
Contribution - employer 13,387,919 (13,387,919)
Contribution - employees 2,886,541 (2,886,541)
Net investment income (22,271,961) 22,271,961
Benefit payments, including refunds of employee
contributions (17,860,080) (17,860,080)
Administrative expenses (182,910)182,910
Other Miscellaneous Income/(Expense)
Net changes 28,027,193 (24,040,491) 52,067,684
Balance at June 30, 2022 (Measurement Date)$404,168,106 $269,583,647 $134,584,459
Grand Total - Both Plans $684,096,858 $453,701,794 $230,395,064
85
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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 5.90% 5.90%
Net Pension Liability $132,741,036 $189,849,785
Current Discount Rate 6.90% 6.90%
Net Pension Liability $95,810,605 $134,584,459
1% Increase 7.90% 7.90%
Net Pension Liability $65,402,680 $89,326,118
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, 2023, the City recognized pension expense of $11,577,776 and
$17,686,519 for the Miscellaneous and Safety Plans, respectively, for total pension expense of
$29,264,295. At June 30, 2023, 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 $10,675,386
Changes of assumptions 5,147,609
Differences between actual and expected experience 264,171 ($585,485)
Net differences between projected and actual earnings on
plan investments 9,222,206
Total $25,309,372 ($585,485)
Safety Plan:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $15,352,613
Changes of assumptions 8,389,970
Differences between actual and expected experience 696,580 ($456,513)
Net differences between projected and actual earnings on
plan investments 13,538,533
Total $37,977,696 ($456,513)
Grand Total $63,287,068 ($1,041,998)
86
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 7 – PENSION PLAN (Continued)
$26,027,999 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, 2024. 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
2024 $4,133,247
2025 3,461,131
2026 611,256
2027 5,842,867
Safety Plan:
Year Ended Annual
June 30 Amortization
2024 $6,785,872
2025 5,954,090
2026 936,489
2027 8,492,119
E.Reduction of CalPERS Discount Rate
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal
year 2021-22. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, 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 6.90% (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 are
reflected in the CalPERS GASB 68 accounting valuation reports for the June 30, 2022
measurement date.
87
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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.
88
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
Benefits provided – The following is a summary of Plan benefits by employee group as of June 30,
2023:
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 2022/23:
- $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)
• Medicare ineligible retirees allowed to stay in their 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 retiree
Other OPEB • City also reimburses Medicare Part B
• No City-paid contribution for dental, vision, or life
For the year ended June 30, 2023, the City’s contributions to the Plan were $5,551,201.
Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the
measurement date of the June 30, 2022 measurement date:
Active employees 167
Inactive employees or beneficiaries currently
receiving benefit payments 360
Total 527
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.
89
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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, 2022 and the total OPEB liability used to calculate the net OPEB liability was determined by
an actuarial valuation dated June 30, 2021, rolled forward to June 30, 2022, based on the
following actuarial methods and assumptions:
Valuation Date • June 30, 2021
Measurement Date • June 30, 2022
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 19 years remaining for 2022/23
Asset Valuation Method • Investment gains and losses spread over 5-year rolling period
• 6.25% at June 30, 2022
• 6.25% at June 30, 2021
• 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
90
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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 49.0% 4.56%
Fixed income 23.0% 1.56%
TIPS 5.0% -0.08%
Commodities 3.0% 1.22%
REITs 20.0% 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.
91
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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, 2021 Measurement Date $91,920,619 $33,801,461 $58,119,158
Changes Recognized for the Measurement Period:
Service Cost 1,374,432 1,374,432
Interest on the total OPEB liability 5,703,844 5,703,844
Changes in benefit terms
Differences between expected and actual experience
Changes of assumptions
Contributions from the employer 4,868,877 (4,868,877)
Net investment income (4,575,167)4,575,167
Benefit payments (4,067,115) (4,067,115)
Administrative expenses (8,575)8,575
Net changes 3,011,161 (3,781,980)6,793,141
Balance at June 30, 2022 Measurement Date $94,931,780 $30,019,481 $64,912,299
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%
(5.25%) (6.25%) (7.25%)
$76,947,176 $64,912,299 $54,932,062
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
$53,974,449 $64,912,299 $78,173,471
92
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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, 2023, the City recognized OPEB expense of $4,509,586. At June 30,
2023, 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 $5,551,201
Differences between actual and expected experience ($1,034,056)
Changes in assumptions 448,781 (116,174)
Net differences between projected and actual earnings on
plan investments 2,461,726
Total $8,461,708 ($1,150,230)
$5,551,201 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,
2024. 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
2024 ($260,204)
2025 421,246
2026 261,134
2027 1,338,101
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 $601,585 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.
93
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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,
2023, 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.
94
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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, 2023
were:
Lease Deferred Inflows
Receivable of Resources
Governmental Activities
Leases Receivable (Lessor)
General Fund:
Conference Center $2,059,878 $2,061,362
Costco 3,886,329 3,778,655
Billboards 6,813,296 6,442,938
Low and Moderate Income Housing Assets Fund:
Magnolia 1,181,466 1,153,603
Total governmental activities leases receivable $13,940,969 $13,436,558
95
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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 was 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 $343,561 in
lease revenue and $72,279 in interest revenue during the current fiscal year related to this lease.
Also, the City has deferred inflows of resources associated with this lease 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
$121,142 in interest revenue during the current fiscal year related to this lease. Also, the City has
deferred inflows of resources associated with this lease 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, 2023, the leases had 21 to 28
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
$206,014 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 per year, and are payable through the fiscal
year 2062. The City recognized $29,579 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 this lease 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, 2023:
Balance Balance Current
June 30, 2022 Deductions June 30, 2023 Portion
Land Lease $2,409,307 $349,429 $2,059,878 $359,990
96
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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, 2023 was $1,391,988, 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, 2023
was $2,059,878. 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, 2023 are as follows:
Year Ending Principal Interest
June 30 Payments Payments Total
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
$2,059,878 $190,122 $2,250,000
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.
97
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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, 2023, the
City paid PLAN JPA $2,263,829 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.
98
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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, 2023 Fiscal Year
Workers' General 2021-2022
Compensation Liability Total Total
Balance, beginning of year $16,243,000 $240,258 $16,483,258 $15,749,797
Current year claims and changes in
estimates of prior years claims 3,329,266 395,130 3,724,396 2,891,287
Claims Paid (2,663,266) (260,326) (2,923,592) (2,157,826)
Balance, end of year $16,909,000 $375,062 $17,284,062 $16,483,258
Current portion $3,006,000 $375,062 $3,381,062 $3,047,258
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.
99
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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
2023. 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, 2023 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, 2023.
100
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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.
101
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
Capital assets recorded at June 30 are comprised of:
Balance Balance
June 30, 2022 Additions June 30, 2023
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 (91,547) ($6,593) (98,140)
Equipment and Vehicle (242,190)(242,190)
Furniture and Fixtures (21,506)(21,506)
Total accumulated depreciation (355,243) (6,593) (361,836)
Net capital assets being depreciated 238,124 (6,593) 231,531
Fiduciary activity capital assets, net $349,343 ($6,593) $342,750
D. Defeased Bonds
As of June 30, 2023, the outstanding balance of defeased debt was $3,335,000 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.
102
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2023
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.
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2023
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 6/30/2022
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 $4,896,807
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 18,379,820
Changes of benefit terms
Changes of assumptions (3,374,655) 12,421,358 (1,361,078) 7,856,877
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 (893,635)
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) (14,547,349)
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 15,692,520
Total pension liability - beginning 188,659,588 196,752,130 198,871,260 205,260,076 227,427,722 233,975,819 244,816,128 254,824,922 264,236,232
Total pension liability - ending (a)196,752,130 198,871,260 205,260,076 227,427,722 233,975,819 244,816,128 254,824,922 264,236,232 279,928,752
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 $9,491,964
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 2,293,651
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 (15,367,557)
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) (14,547,349)
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) (126,067)
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 (18,255,358)
Plan fiduciary net position - beginning 125,614,993 143,740,988 142,302,730 139,167,698 149,962,251 157,470,642 163,510,764 167,734,633 202,373,505
Plan fiduciary net position - ending (b)143,740,988 142,302,730 139,167,698 149,962,251 157,470,642 163,510,764 167,734,633 202,373,505 184,118,147
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 $95,810,605
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% 65.77%
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 $28,788,170
Net pension liability as percentage of covered
payroll 299.07% 317.83% 308.71% 263.57% 323.76% 325.31% 331.44% 223.48% 332.81%
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 fromplan
changes which occurred afterthe June 30valuation date.This applies forvoluntary benefit changes as well
as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes inassumptions: 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 2022,the accounting discount rate reduced from7.15% to 6.90%. In 2015, amounts reported
reflect an adjustment ofthe discount rate form7.5% (net ofadministrative expense)to 7.65% (without a reduction forpension
plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.
106
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2023
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 2023
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 $10,675,385
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 10,675,385
Contribution deficiency (excess)$0 $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 $31,400,311
Contributions as a percentage of covered
payroll 23.66% 25.22% 17.79% 26.09% 27.41% 29.81% 31.13% 32.97% 34.00%
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 6/30/2020
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, 2.625% for 2020, 2.50% for 2021 and 2022 and 2.30% for 2023.
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, 7.00% for
2021 and 2022 and 6.80% for 2023, 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. For
2023, pre-retirement and post-retirement mortality rates include
generational mortality improvement using 80% of Scale MP-2020
published by the Society of Actuaries
107
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2023
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 6/30/2022
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 $7,567,350
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 26,419,737
Changes of benefit terms
Changes of assumptions (4,789,129) 18,010,606 (1,293,579) 12,584,955
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 (684,769)
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) (17,860,080)
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 28,027,193
Total pension liability - beginning 256,002,648 266,884,738 268,679,186 278,764,324 314,037,249 327,073,740 343,645,905 359,168,480 376,140,913
Total pension liability - ending (a)266,884,738 268,679,186 278,764,324 314,037,249 327,073,740 343,645,905 359,168,480 376,140,913 404,168,106
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 $13,387,919
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 2,886,541
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 (22,271,961)
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) (17,860,080)
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) (182,910)
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 (24,040,491)
Plan fiduciary net position - beginning 170,937,835 195,811,152 195,205,601 192,070,665 208,630,800 220,879,754 231,869,470 240,958,874 293,624,138
Plan fiduciary net position - ending (b)195,811,152 195,205,601 192,070,665 208,630,800 220,879,754 231,869,470 240,958,874 293,624,138 269,583,647
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 $134,584,459
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% 66.70%
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 $24,325,363
Net pension liability as percentage of covered payroll 444.37% 440.49% 456.60% 538.79% 484.19% 486.51% 487.17% 338.48% 553.27%
Notes to Schedule:
*Fiscal year 2015 was the 1st year of implementation.
Benefitchanges.The figures above do not include any liability impact that may have resulted fromplan changes which occurred
afterthe June 30valuation date.This applies forvoluntary benefit changes as well as any offers of Two Years AdditionalService
Credit (a.k.a. Golden Handshakes).
Changes inassumptions: In 2017, theaccounting discount rate reduced from7.65% to 7.15%.In 2016, 2018, 2019, 2020, and 2021,
there were no changes. In 2022, the accounting discount rate reduced from7.15% to 6.90%. In2015, 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
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2023
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 2023
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 $15,352,613
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 15,352,613
Contribution deficiency (excess)$0 $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 $26,580,095
Contributions as a percentage of covered
payroll 43.12% 44.97% 41.26% 42.51% 44.24% 46.99% 50.92% 55.04% 57.76%
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 6/30/2020
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, 2.625% for 2020, 2.50% for 2021 and 2022 and 2.30% for 2023.
Salary increases Varies by entry
Investment rate of return
Retirement age
Mortality
*Fiscal year 2015 was the 1st year of implementation
7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, 7.00% for 2021
and 2022 and 6.80% for 2023, net of administrative expenses, including
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. For 2023, pre-retirement and
post-retirement mortality rates include generational mortality
improvement using 80% of Scale MP-2020 published by the Society of
Actuaries
The probabilities of Retirement are based on the CalPERS Experience
109
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2023
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 6/30/2022
Total OPEB Liability
Service Cost $1,574 $1,535 $1,558 $1,604 $1,516 $1,374
Interest 5,087 5,325 5,568 5,952 6,058 5,704
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)(4,067)
Net change in total OPEB liability 3,760 3,625 5,971 1,645 1,679 3,011
Total OPEB liability - beginning 75,240 79,000 82,625 88,596 90,241 91,920
Total OPEB liability - ending (a)$79,000 $82,625 $88,596 $90,241 $91,920 $94,931
Plan fiduciary net position
Contributions - employer $3,703 $4,128 $4,180 $4,854 $4,810 $4,869
Contributions - employee
Net investment income 1,803 1,566 1,402 838 7,141 (4,575)
Administrative expense (9)(37)(5)(12)(9)(9)
Benefit payments (2,901)(3,326)(3,378)(4,052)(4,009)(4,067)
Net change in plan fiduciary net position 2,596 2,331 2,199 1,628 7,933 (3,782)
Plan fiduciary net position - beginning 17,114 19,710 22,041 24,240 25,868 33,801
Plan fiduciary net position - ending (b)$19,710 $22,041 $24,240 $25,868 $33,801 $30,019
Net OPEB liability - ending (a)-(b)$59,290 $60,584 $64,356 $64,373 $58,119 $64,912
Plan fiduciary net position as a percentage of the total OPEB liability 24.95% 26.68% 27.36% 28.67% 36.77% 31.62%
Covered-employee payroll $26,539 $26,986 $27,662 $28,215 $26,824 $25,079
Net OPEB liability as a percentage of covered-employee payroll 223.41%224.50% 232.65% 228.15% 216.67% 258.83%
* Fiscal year 2018 was the first year of implementation.
110
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2023
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 2023
Actuarially determined contribution $6,279 $6,839 $6,995 $7,253 $7,373 $7,053
Contributions in relation to the
actuarially determined contribution 4,128 4,180 4,854 4,810 4,869 5,551
Contribution deficiency (excess) $2,151 $2,659 $2,141 $2,443 $2,504 $1,502
Covered-employee payroll $26,986 $27,662 $28,215 $26,824 $25,079 $24,911
Contributions as a percentage of
covered-employee payroll 15.30% 15.11% 17.20% 17.93% 19.41% 22.28%
* Fiscal year 2018 was the first year of implementation.
Valuation 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 19 years remaining for 2022/23
• 6.25% at June 30, 2022
• 6.25% at June 30, 2021
• 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
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
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SUPPLEMENTARY INFORMATION
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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
General Purpose Measure W Total
ASSETS
Cash and investments $66,512,172 $14,227,646 $80,739,818
Receivables:
Accounts 11,182,712 2,533,134 13,715,846
Accrued interest 423,012 423,012
Leases 12,759,503 12,759,503
Due from other funds 480,000 480,000
Due from Conference Center 56,072 56,072
Inventory 574 574
Restricted cash and investments
Properties held for redevelopment 2,823,118 2,823,118
Total Assets $94,237,163 $16,760,780 $110,997,943
LIABILITIES
Accounts payable $5,939,493 $5,939,493
Accrued salaries and benefits 2,697,253 2,697,253
Other payable 776,211 776,211
Deposits 742,865 742,865
Total Liabilities 10,155,822 10,155,822
DEFERRED INFLOWS OF RESOURCES
Related to leases 12,282,955 12,282,955
FUND BALANCES
Nonspendable 477,122 477,122
Restricted 2,823,118 2,823,118
Committed 3,775,873 $16,760,780 20,536,653
Assigned 8,661,539 8,661,539
Unassigned 56,060,734 56,060,734
Total Fund Balances 71,798,386 16,760,780 88,559,166
Total Liabilities and Fund Balances $94,237,163 $16,760,780 $110,997,943
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING BALANCE SHEETS
JUNE 30, 2023
116
General Purpose Measure W Total
REVENUES
Property taxes $54,041,117 $54,041,117
Sales taxes 21,735,087 $15,618,697 37,353,784
Transient occupancy taxes 16,357,104 16,357,104
Franchise Fees 5,240,637 5,240,637
Other taxes 8,059,817 8,059,817
Intergovernmental 3,558,742 3,558,742
Interest and rentals 4,247,107 4,247,107
Licenses and permits 20,467,644 20,467,644
Charges for services 11,673,187 11,673,187
Fines and forfeitures 757,019 757,019
Other 353,378 353,378
Total Revenues 146,490,839 15,618,697 162,109,536
EXPENDITURES
Current:
City Council 241,596 241,596
City Clerk 1,027,822 1,027,822
City Treasurer 35,279 35,279
City Attorney 1,220,059 1,220,059
City Manager 3,819,858 287,295 4,107,153
Finance 3,089,869 3,089,869
Non-departmental 3,484,013 3,484,013
Human Resources 2,221,160 2,221,160
Fire 35,512,513 35,512,513
Police 36,282,833 36,282,833
Public Works 7,936,326 7,936,326
Parks and Recreation 20,362,073 20,362,073
Library 6,475,274 6,475,274
Economic and Community Development 11,770,931 11,770,931
Capital Outlay 141,250 141,250
Total Expenditures 133,620,856 287,295 133,908,151
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 12,869,983 15,331,402 28,201,385
OTHER FINANCING SOURCES (USES)
Gain from sale of property 1,852,123 1,852,123
Loss from sale of property (6,439,913)(6,439,913)
Transfers in 5,283,682 5,283,682
Transfers out (1,388,940) (10,422,461) (11,811,401)
Total Other Financing Sources (Uses)(693,048) (10,422,461) (11,115,509)
Net Change in Fund Balances before special items 12,176,935 4,908,941 17,085,876
SPECIAL ITEMS
Remittance of land sale proceeds (5,173,366)(5,173,366)
Net Change in Fund Balances 7,003,569 11,912,510
Fund balance - July 1 64,794,817 11,851,839 76,646,656
Fund balance - June 30 $71,798,386 $16,760,780 $88,559,166
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
117
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, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $43,804,769 $45,804,769 $54,041,117 $8,236,348
Sales taxes 20,991,018 22,391,018 21,735,087 (655,931)
Transient occupancy taxes 11,160,752 14,160,752 16,357,104 2,196,352
Franchise fees 4,600,000 4,600,000 5,240,637 640,637
Other taxes 4,893,252 5,693,252 8,059,817 2,366,565
Intergovernmental 2,844,618 4,337,199 3,558,742 (778,457)
Interest and rentals 5,453,469 4,556,469 4,247,107 (309,362)
Licenses and permits 15,500,000 19,425,400 20,467,644 1,042,244
Charges for services 8,799,097 8,265,097 11,673,187 3,408,090
Fines and forfeitures 710,824 710,824 757,019 46,195
Other 259,383 278,902 353,378 74,476
Amounts available for appropriation 119,017,182 130,223,682 146,490,839 16,267,157
Charges to appropriations (outflows)
City Council 258,749 260,650 241,596 19,054
City Clerk 1,143,342 1,154,449 1,027,822 126,627
City Treasurer 167,292 167,904 35,279 132,625
City Attorney 940,290 940,291 1,220,059 (279,768)
City Manager 4,527,997 5,324,596 3,909,909 1,414,687
Finance 3,892,875 4,405,085 3,617,322 787,763
Non-departmental 1,544,367 2,152,699 3,486,795 (1,334,096)
Human Resources 2,518,004 2,684,109 2,331,987 352,122
Fire 31,313,293 33,424,718 36,400,487 (2,975,769)
Police 32,957,662 34,511,302 36,283,110 (1,771,808)
Public Works 7,120,654 8,603,705 8,931,895 (328,190)
Parks and Recreation 19,608,365 22,873,151 22,225,939 647,212
Library 6,706,110 7,273,746 6,518,982 754,764
Economic and Community Development 8,907,770 15,609,631 15,909,963 (300,332)
Capital outlay 141,250 (141,250)
Total charges to appropriations 121,606,770 139,386,036 142,282,395 (2,896,359)
OTHER FINANCING SOURCES (USES)
Gain from sale of property 897,000 1,852,123 955,123
Loss from sale of property (6,439,913)(6,439,913)
Transfers in 3,245,000 6,151,400 5,283,682 (867,718)
Transfers out (600,000)(4,533,270)(1,388,940)3,144,330
Total Other Financing Sources (Uses)2,645,000 2,515,130 (693,048)(3,208,178)
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS 55,412 (6,647,224)3,515,396 10,162,620
SPECIAL ITEMS
Remittance of land sale proceeds (5,173,366)(5,173,366)
Net Change in Fund Balances $55,412 ($6,647,224)(1,657,970) $4,989,254
Fund Balance - July 1 64,794,817
Adjustment to budgetary basis:
Encumbrance adjustments 8,661,539
Fund Balance - June 30 $71,798,386
(Continued)
Budgeted Amounts
General Purpose
118
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, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes
Sales taxes $13,800,000 $13,800,000 $15,618,697 $1,818,697
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 13,800,000 13,800,000 15,618,697 1,818,697
Charges to appropriations (outflows)
City Council
City Clerk
City Treasurer
City Attorney
City Manager 398,622 411,297 287,295 124,002
Finance
Non-departmental
Human Resources
Fire
Police
Public Works
Parks and Recreation
Library
Economic and Community Development
Capital outlay
Total charges to appropriations 398,622 411,297 287,295 124,002
OTHER FINANCING SOURCES (USES)
Gain from sale of property
Loss from sale of property
Transfers in
Transfers out (12,744,450) (23,619,818) (10,422,461) 13,197,357
Total Other Financing Sources (Uses)(12,744,450) (23,619,818) (10,422,461) 13,197,357
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS 656,928 (10,231,115)4,908,941 15,140,056
SPECIAL ITEMS
Remittance of land sale proceeds
Net Change in Fund Balances $656,928 ($10,231,115)4,908,941 $15,140,056
Fund Balance - July 1 11,851,839
Adjustment to budgetary basis:
Encumbrance adjustments
Fund Balance - June 30 $16,760,780
(Continued)
Budgeted Amounts
Measure W
119
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, 2023
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $43,804,769 $45,804,769 $54,041,117 $8,236,348
Sales taxes 34,791,018 36,191,018 37,353,784 1,162,766
Transient occupancy taxes 11,160,752 14,160,752 16,357,104 2,196,352
Franchise fees 4,600,000 4,600,000 5,240,637 640,637
Other taxes 4,893,252 5,693,252 8,059,817 2,366,565
Intergovernmental 2,844,618 4,337,199 3,558,742 (778,457)
Interest and rentals 5,453,469 4,556,469 4,247,107 (309,362)
Licenses and permits 15,500,000 19,425,400 20,467,644 1,042,244
Charges for services 8,799,097 8,265,097 11,673,187 3,408,090
Fines and forfeitures 710,824 710,824 757,019 46,195
Other 259,383 278,902 353,378 74,476
Amounts available for appropriation 132,817,182 144,023,682 162,109,536 18,085,854
Charges to appropriations (outflows)
City Council 258,749 260,650 241,596 19,054
City Clerk 1,143,342 1,154,449 1,027,822 126,627
City Treasurer 167,292 167,904 35,279 132,625
City Attorney 940,290 940,291 1,220,059 (279,768)
City Manager 4,926,619 5,735,893 4,197,204 1,538,689
Finance 3,892,875 4,405,085 3,617,322 787,763
Non-departmental 1,544,367 2,152,699 3,486,795 (1,334,096)
Human Resources 2,518,004 2,684,109 2,331,987 352,122
Fire 31,313,293 33,424,718 36,400,487 (2,975,769)
Police 32,957,662 34,511,302 36,283,110 (1,771,808)
Public Works 7,120,654 8,603,705 8,931,895 (328,190)
Parks and Recreation 19,608,365 22,873,151 22,225,939 647,212
Library 6,706,110 7,273,746 6,518,982 754,764
Economic and Community Development 8,907,770 15,609,631 15,909,963 (300,332)
Capital outlay 141,250 (141,250)
Total charges to appropriations 122,005,392 139,797,333 142,569,690 (2,772,357)
OTHER FINANCING SOURCES (USES)
Gain from sale of property 897,000 1,852,123 955,123
Loss from sale of property (6,439,913) (6,439,913)
Transfers in 3,245,000 6,151,400 5,283,682 (867,718)
Transfers out (13,344,450) (28,153,088) (11,811,401) 16,341,687
Total Other Financing Sources (Uses)(10,099,450) (21,104,688) (11,115,509) 9,989,179
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS 712,340 (16,878,339) 8,424,337 25,302,676
SPECIAL ITEMS
Remittance of land sale proceeds (5,173,366) (5,173,366)
Net Change in Fund Balances $712,340 ($16,878,339) 3,250,971 $20,129,310
Fund Balance - July 1 76,646,656
Adjustment to budgetary basis:
Encumbrance adjustments 8,661,539
Fund Balance - June 30 $88,559,166
Budgeted Amounts
Total
120
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.
Public Arts In-Lieu Fee - Accounts for development fee revenues that are collected and are
required to be used for public art installations.
121
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Oyster Point CFD Special Tax B - Accounts for special assessment collections that are to be
used for maintenance and administrative fees of the community facilities district.
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.
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.
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.
122
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
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.
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.
123
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2023
SPECIAL REVENUE FUNDS
Community
Developer Development Maintenance Transportation
Gas Tax Contributions Block Grant Districts Sales Tax
ASSETS
Cash and investments $349,087 $11,189,187 $4,990,259 $5,486,805
Receivables:
Accounts 147,252 1,315,178 $1,948 68,360 166,956
Accrued interest 2,075 58,921 25,212
Loans 667,537
Leases
Restricted cash and investments 1,461
Total Assets $498,414 $12,563,286 $670,946 $5,058,619 $5,678,973
LIABILITIES
Liabilities:
Accounts payable $501,203 $603 $34,650
Other payable 526,238
Deposits 3,232,930
Due to other funds 100,000
Total Liabilities 3,734,133 626,841 34,650
DEFERRED INFLOWS OF RESOURCES
Related to leases
Fund Balances:
Restricted $498,414 8,829,153 44,105 5,023,969 $5,678,973
Total Fund Balances 498,414 8,829,153 44,105 5,023,969 5,678,973
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $498,414 $12,563,286 $670,946 $5,058,619 $5,678,973
124
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
$1,017,425 $848 $20,005,467 $664,127 $741,784 $2,773,769 $2,948,449
88 52,690 132,750
251 76,348 4,057 9,499 14,301 12,925
14,540
$1,017,425 $1,099 $20,081,815 $682,812 $803,973 $2,788,070 $3,094,124
$146,464 $14,230
$36,723
36,723 146,464 14,230
980,702 $1,099 19,935,351 668,582 $803,973 $2,788,070 $3,094,124
980,702 1,099 19,935,351 668,582 803,973 2,788,070 3,094,124
$1,017,425 $1,099 $20,081,815 $682,812 $803,973 $2,788,070 $3,094,124
(Continued)
125
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2023
CAPITAL
PROJECTS
SPECIAL REVENUE FUNDS FUND
Low and
SMC Measure W Oyster Point Moderate Public
1/2 Cent Public Arts CFD Income Safety
Sales Tax In-Lieu Fee Special Tax B Housing Assets Impact Fee
ASSETS
Cash and investments $2,080,865 $142,400 $166,754 $2,467,559 $2,069,797
Receivables:
Accounts 5,596
Accrued interest 9,032 486 13,034 14,005
Loans 510,921
1,181,466
Restricted cash and investments
Total Assets $2,089,897 $142,886 $166,754 $4,178,576 $2,083,802
LIABILITIES
Liabilities:
Accounts payable $81,885
Other payable 825
Deposits
Due to other funds
Total Liabilities 82,710
DEFERRED INFLOWS OF RESOURCES
Related to leases 1,153,603
Fund Balances:
Restricted $2,089,897 $142,886 $166,754 2,942,263 $2,083,802
Total Fund Balances 2,089,897 142,886 166,754 2,942,263 2,083,802
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $2,089,897 $142,886 $166,754 $4,178,576 $2,083,802
126
CAPITAL PROJECTS FUNDS
Oyster Point Sewer Oyster Point Park Land Park Bicycle and Commercial
Improvement Capacity Development Acquisition Construction Pedestrian Linkage
Impact Fees Charges Impact Fees Fee Fee Impact Fee Impact Fee
$36,304 $11,576,637 $68,567 $3,278,740 $9,997,204 $225,903 $15,005,231
44,649
467 58,570 17,123 51,044 1,051 54,899
$36,771 $11,635,207 $113,216 $3,295,863 $10,048,248 $226,954 $15,060,130
$50,082 $12,244
19,500
50,082 31,744
$36,771 $11,635,207 63,134 $3,295,863 $10,048,248 $226,954 15,028,386
36,771 11,635,207 63,134 3,295,863 10,048,248 226,954 15,028,386
$36,771 $11,635,207 $113,216 $3,295,863 $10,048,248 $226,954 $15,060,130
(Continued)
127
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2023
DEBT SERVICE
CAPITAL PROJECTS FUNDS FUND
East of 101
Library Sewer Traffic Child Care Debt
Impact Fee Impact Fees Impact Fees Impact Fees Service
ASSETS
Cash and investments $4,292 $5,249,246 $21,282,308 $14,031,711
Receivables:
Accounts
Accrued interest 17 26,318 131,163 75,833
Loans
Restricted cash and investments
Total Assets $4,309 $5,275,564 $21,413,471 $14,107,544
LIABILITIES
Liabilities:
Accounts payable
Other payable
Deposits
Due to other funds
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Related to leases
Fund Balances:
Restricted $4,309 $5,275,564 $21,413,471 $14,107,544
Total Fund Balances 4,309 5,275,564 21,413,471 14,107,544
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $4,309 $5,275,564 $21,413,471 $14,107,544
128
Total
Nonmajor
Governmental
Funds
$137,850,725
1,935,467
656,631
1,192,998
1,181,466
1,461
$142,818,748
$841,361
583,286
3,232,930
100,000
4,757,577
1,153,603
136,907,568
136,907,568
$142,818,748
129
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
SPECIAL REVENUE FUNDS
Community
Developer Development Maintenance Transportation
Gas Tax Contributions Block Grant Districts Sales Tax
REVENUES
Property taxes $2,400,240
Sales taxes
Other taxes $2,256,563
Intergovernmental $1,934,261 $61,500 $214,476
Interest and rentals 4,549 119,796 13,780 53,726
Charges for services 2,014,923 60,669
Other 21,255 21,821
Total Revenues 1,938,810 2,217,474 310,746 2,400,240 2,310,289
EXPENDITURES
Current:
Fire
Police
Public works
Parks and recreation 2,235,977
Economic and community development 388,662 280,303
Non-departmental
Other
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 388,662 280,303 2,235,977
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,938,810 1,828,812 30,443 164,263 2,310,289
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (1,728,303) (567,006) (150,000)(344,994)
Total Other Financing Sources (Uses)(1,728,303) (567,006) (150,000)(344,994)
Net Change in Fund Balances 210,507 1,261,806 (119,557) 164,263 1,965,295
Fund balance - July 1 287,907 7,567,347 163,662 4,859,706 3,713,678
Fund balance - June 30 $498,414 $8,829,153 $44,105 $5,023,969 $5,678,973
130
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
$167,130 $217,980
$95,643 $1,463,532
611 $171,462 8,722 $19,737 $29,691 27,462
201,743 55,301
10,040,863 5,384 166,623 262,287
297,386 167,741 10,267,626 232,086 186,360 291,978 1,490,994
67,741
98,694
17,209
564,978 181,247
98,694 67,741 564,978 181,247 17,209
198,692 100,000 9,702,648 50,839 169,151 291,978 1,490,994
(24,778) (100,000) (675,869) (1,100,000) (419,885)
(24,778) (100,000) (675,869) (1,100,000) (419,885)
173,914 9,026,779 50,839 (930,849) 291,978 1,071,109
806,788 1,099 10,908,572 617,743 1,734,822 2,496,092 2,023,015
$980,702 $1,099 $19,935,351 $668,582 $803,973 $2,788,070 $3,094,124
(Continued)
131
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
CAPITAL
PROJECTS
SPECIAL REVENUE FUNDS FUND
Low and
SMC Measure W Oyster Point Moderate Public
1/2 Cent Public Arts CFD Income Safety
Sales Tax In-Lieu Fee Special Tax B Housing Assets Impact Fee
REVENUES
Property taxes
Sales taxes $912,453
Other taxes $196,775
Intergovernmental
Interest and rentals 19,243 $777 $248,936 $29,006
Charges for services 142,109 419,113
Other
Total Revenues 931,696 142,886 196,775 248,936 448,119
EXPENDITURES
Current:
Fire 129,027
Police
Public works
Parks and recreation
Economic and community development 335,765
Non-departmental
Other 30,021
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 30,021 335,765 129,027
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 931,696 142,886 166,754 (86,829) 319,092
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (206,476) (749,827)
Total Other Financing Sources (Uses) (206,476) (749,827)
Net Change in Fund Balances 725,220 142,886 166,754 (86,829) (430,735)
Fund balance - July 1 1,364,677 3,029,092 2,514,537
Fund balance - June 30 $2,089,897 $142,886 $166,754 $2,942,263 $2,083,802
132
CAPITAL PROJECTS FUNDS
Oyster Point Sewer Oyster Point Park Land Park Bicycle and Commercial
Improvement Capacity Development Acquisition Construction Pedestrian Linkage
Impact Fees Charges Impact Fees Fee Fee Impact Fee Impact Fee
$5,920,411
$1,022 $121,864 $35,416 $106,858 $2,206 $121,167
105,913 1,107,479 667,352 78,353 1,182,963 38,845 7,377,991
106,935 1,229,343 6,587,763 113,769 1,289,821 41,051 7,499,158
2,800 6,517,645
1,384,870
100,000
100,000 2,800 6,517,645 1,384,870
6,935 1,226,543 70,118 113,769 1,289,821 41,051 6,114,288
(47,978) (156,485)
(47,978) (156,485)
6,935 1,226,543 70,118 65,791 1,133,336 41,051 6,114,288
29,836 10,408,664 (6,984) 3,230,072 8,914,912 185,903 8,914,098
$36,771 $11,635,207 $63,134 $3,295,863 $10,048,248 $226,954 $15,028,386
(Continued)
133
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
DEBT SERVICE
CAPITAL PROJECTS FUNDS FUND
East of 101
Library Sewer Traffic Child Care Debt
Impact Fee Impact Fees Impact Fees Impact Fees Service
REVENUES
Property taxes
Sales taxes
Other taxes
Intergovernmental
Interest and rentals $13 $54,612 $268,931 $157,091
Charges for services 3,622 350,946 1,020,442 542,089
Other
Total Revenues 3,635 405,558 1,289,373 699,180
EXPENDITURES
Current:
Fire
Police
Public works 2,800
Parks and recreation
Economic and community development
Non-departmental 2,800 2,800
Other
Debt service:
Principal repayments $3,185,000
Interest and fiscal charges 8,280,065
Total Expenditures 2,800 2,800 2,800 11,465,065
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 3,635 402,758 1,286,573 696,380 (11,465,065)
OTHER FINANCING SOURCES (USES)
Transfers in 11,465,065
Transfers out (4,634,659) (490,000)
Total Other Financing Sources (Uses)(4,634,659) (490,000) 11,465,065
Net Change in Fund Balances 3,635 402,758 (3,348,086) 206,380
Fund balance - July 1 674 4,872,806 24,761,557 13,901,164
Fund balance - June 30 $4,309 $5,275,564 $21,413,471 $14,107,544
134
Total
Nonmajor
Governmental
Funds
$2,400,240
912,453
2,838,448
9,689,823
1,616,678
15,369,853
10,518,233
43,345,728
129,027
67,741
6,621,939
2,235,977
1,004,730
22,809
2,161,116
3,285,000
8,280,065
23,808,404
19,537,324
11,465,065
(11,396,260)
68,805
19,606,129
117,301,439
$136,907,568
135
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, 2023
GAS TAX
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Other taxes
Intergovernmental $2,099,642 $1,934,261 ($165,381) $562,000 $214,476 ($347,524)
Interest and rentals 15,000 4,549 (10,451) 30,000 13,780 (16,220)
Charges for services 172,878 60,669 (112,209)
Other 21,821 21,821
Total Revenues 2,114,642 1,938,810 (175,832) 764,878 310,746 (454,132)
EXPENDITURES
Current:
Police
Public works
Parks and recreation
Economic and community development 557,018 551,692 5,326
Non-departmental
Other
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 557,018 551,692 5,326
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,114,642 1,938,810 (175,832) 207,860 (240,946) (448,806)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (2,565,713) (1,728,303) 837,410 (150,000) (150,000)
Total Other Financing Sources (Uses) (2,565,713) (1,728,303) 837,410 (150,000) (150,000)
NET CHANGE IN FUND BALANCES ($451,071) 210,507 $661,578 $207,860 (390,946) ($598,806)
Adjustment to budgetary basis:
Encumbrance adjustments 271,389
Fund balance - July 1 287,907 163,662
Fund balance - June 30 $498,414 $44,105
BLOCK GRANT
COMMUNITY DEVELOPMENT
136
MAINTENANCE DISTRICTS SOLID WASTE REDUCTION
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$1,941,928 $2,400,240 $458,312
$1,920,452 $2,256,563 $336,111
$95,643 $95,643
25,000 53,726 28,726
180,000 201,743 $21,743
1,941,928 2,400,240 458,312 1,945,452 2,310,289 364,837 275,643 297,386 21,743
606,498 98,694 507,804
2,344,539 2,235,977 108,562
298,980 (298,980)
2,344,539 2,235,977 108,562 606,498 397,674 208,824
(402,611) 164,263 566,874 1,945,452 2,310,289 364,837 (330,855) (100,288) 230,567
(4,389,003) (344,994) 4,044,009 (78,086) (24,778) 53,308
(4,389,003) (344,994) 4,044,009 (78,086) (24,778) 53,308
($402,611) 164,263 $566,874 ($2,443,551) 1,965,295 $4,408,846 ($408,941) (125,066) $283,875
298,980
4,859,706 3,713,678 806,788
$5,023,969 $5,678,973 $980,702
(Continued)
TRANSPORTATION SALES TAX
137
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, 2023
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Other taxes $100,000 $167,130 $67,130
Intergovernmental
Interest and rentals 611 611 $171,462 $171,462
Charges for services 55,301 55,301
Other $4,883,255 10,040,863 5,157,608
Total Revenues 100,000 167,741 67,741 4,883,255 10,267,626 5,384,371
EXPENDITURES
Current:
Police 67,741 (67,741)
Public works
Parks and recreation
Economic and community development
Non-departmental
Other 14,255 564,978 (550,723)
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 67,741 (67,741) 14,255 564,978 (550,723)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 100,000 100,000 4,869,000 9,702,648 4,833,648
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (100,000) (100,000)(15,569,505) (675,869) 14,893,636
Total Other Financing Sources (Uses) (100,000) (100,000)(15,569,505) (675,869) 14,893,636
NET CHANGE IN FUND BALANCES ($10,700,505) 9,026,779 $19,727,284
Adjustment to budgetary basis:
Encumbrance adjustments
Fund balance - July 1 1,099 10,908,572
Fund balance - June 30 $1,099 $19,935,351
ENFORCEMENT SERVICES
SUPPLEMENTAL LAW
CITY PROGRAMS
138
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 $1,463,532 $163,532
8,722 8,722 $5,000 $19,737 $14,737 27,462 27,462
5,384 5,384 125,000 166,623 41,623
232,086 232,086 130,000 186,360 56,360 1,300,000 1,490,994 190,994
17,209 (17,209)
$384,614 262,763 121,851
384,614 262,763 121,851 17,209 (17,209)
(384,614) (30,677) 353,937 130,000 169,151 39,151 1,300,000 1,490,994 190,994
(1,125,000) (1,100,000) 25,000 (3,992,025) (419,885) 3,572,140
(1,125,000) (1,100,000) 25,000 (3,992,025) (419,885) 3,572,140
($384,614) (30,677) $353,937 ($995,000) (930,849) $64,151 ($2,692,025) 1,071,109 $3,763,134
81,516
617,743 1,734,822 2,023,015
$668,582 $803,973 $3,094,124
(Continued)
ROAD MAINTENANCE
AND REHABILITATION
139
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, 2023
SPECIAL TAX B
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes $853,534 $912,453 $58,919
Other taxes $196,775 $196,775
Intergovernmental
Interest and rentals 19,243 19,243
Charges for services
Other
Total Revenues 853,534 931,696 78,162 196,775 196,775
EXPENDITURES
Current:
Police
Public works
Parks and recreation
Economic and community development
Non-departmental
Other $71,000 30,021 40,979
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 71,000 30,021 40,979
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 853,534 931,696 78,162 (71,000) 166,754 237,754
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (1,598,291) (206,476) 1,391,815
Total Other Financing Sources (Uses) (1,598,291) (206,476) 1,391,815
NET CHANGE IN FUND BALANCES ($744,757) 725,220 $1,469,977 ($71,000) 166,754 $237,754
Adjustment to budgetary basis:
Encumbrance adjustments
Fund balance - July 1 1,364,677
Fund balance - June 30 $2,089,897 $166,754
SMC MEASURE W
1/2 CENT SALES TAX
OYSTER POINT CFD
140
HOUSING ASSETS
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
$167,000 $248,936 $81,936
15,000 (15,000)
182,000 248,936 66,936
894,001 340,834 553,167
$3,185,000 $3,185,000
5,104,450 8,280,065 ($3,175,615)
894,001 340,834 553,167 8,289,450 11,465,065 (3,175,615)
(712,001) (91,898) 620,103 (8,289,450) (11,465,065) (3,175,615)
8,289,450 11,465,065 3,175,615
8,289,450 11,465,065 3,175,615
($712,001) (91,898) $620,103
5,069
3,029,092
$2,942,263
DEBT SERVICE FUND
LOW AND MODERATE INCOME
141
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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.
143
CITY OF SOUTH SAN FRANCISCO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2023
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
ASSETS
Current assets:
Cash and investments $3,022,642 $19,153,892 $10,490,855 $6,213,829 $38,881,218
Receivables:
Accounts 357,701 98,615 456,316
Accrued interest 13,495 95,910 43,466 32,227 185,098
Deposit 216,000 93,790 309,790
Prepaid items 1,358,284 1,358,284
Total current assets 3,036,137 19,823,503 12,085,010 6,246,056 41,190,706
Noncurrent assets:
Capital assets:
Depreciable, net of accumulated depreciation 5,328,500 5,328,500
Total non-current assets 5,328,500 5,328,500
Total Assets 3,036,137 19,823,503 12,085,010 11,574,556 46,519,206
LIABILITIES
Current liabilities:
Accounts payable 118,382 144,782 70,554 333,718
Other payable 29,264 148,275 177,539
Current portion of accrued insurance loss 3,381,062 3,381,062
Current portion of compensated absences 82,877 1,211,656 1,294,533
Current portion of long-term debt
Total current liabilities 230,523 3,525,844 1,430,485 5,186,852
Noncurrent liabilities:
Accrued insurance loss 13,903,000 13,903,000
Compensated absences obligation 188,806 644,607 833,413
Total noncurrent liabilities 188,806 13,903,000 644,607 14,736,413
Total Liabilities 419,329 17,428,844 2,075,092 19,923,265
NET POSITION:
Net investment in capital assets 5,328,500 5,328,500
Unrestricted 2,616,808 2,394,659 10,009,918 6,246,056 21,267,441
Total Net Position $2,616,808 $2,394,659 $10,009,918 $11,574,556 $26,595,941
144
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
OPERATING REVENUES
Charges for services $6,270,762 $6,574,776 $17,132,515 $1,370,243 $31,348,296
Total Operating Revenues 6,270,762 6,574,776 17,132,515 1,370,243 31,348,296
OPERATING EXPENSES
Personnel expenses 2,365,234 666,115 16,820,702 19,852,051
Professional services 872,671 260,326 1,132,997
Program supplies 2,218,013 1,250 24,855 2,244,118
Insurance 12,988 2,877,706 2,890,694
Self-insurance and claims 2,807,004 2,807,004
Repair and maintenance 636,840 428,160 1,065,000
Utilities 104,991 104,991
Depreciation 1,045,253 1,045,253
Other 31,220 586,924 618,144
Total Operating Expenses 6,241,957 6,611,151 17,408,876 1,498,268 31,760,252
Operating Income (Loss)28,805 (36,375) (276,361) (128,025) (411,956)
NONOPERATING
REVENUES (EXPENSES)
Interest income 27,434 200,866 86,902 64,976 380,178
Interest expense (2,870)(2,870)
Gain from disposal of capital assets 104,926 104,926
Other 64,501 64,501
Total Nonoperating
Revenues (Expenses)27,434 265,367 86,902 167,032 546,735
Net income (loss) before transfers 56,239 228,992 (189,459)39,007 134,779
TRANSFERS
Transfers in 450,000 598,442 1,048,442
Change in Net Position 56,239 228,992 260,541 637,449 1,183,221
Net Position - July 1 2,560,569 2,165,667 9,749,377 10,937,107 25,412,720
Net Position - June 30 $2,616,808 $2,394,659 $10,009,918 $11,574,556 $26,595,941
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
CITY OF SOUTH SAN FRANCISCO
145
CITY OF SOUTH SAN FRANCISCO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from interfund service provided $6,270,762 $6,281,576 $17,033,900 $1,370,243 $30,956,481
Cash payments to suppliers for goods and services (3,876,723) (3,138,032)(521,082) (7,535,837)
Cash payments to employees for services (2,296,124) (550,904) (17,418,568)(20,265,596)
Cash payments for judgments and claims (2,006,200)(2,006,200)
Net Cash Provided by Operating Activities 97,915 586,440 (384,668) 849,161 1,148,848
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 450,000 598,442 1,048,442
Net Cash Provided by Noncapital Financing Activities 450,000 598,442 1,048,442
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal paid on capital lease (144,637) (144,637)
Interest payments (2,870)(2,870)
Acquisition of capital assets, net (1,979,957) (1,979,957)
Proceeds from the sale of capital assets 113,687 113,687
Net Cash Used in Capital and Related Financing Activities (2,013,777) (2,013,777)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 6,736 41,242 15,624 12,658 76,260
Changes in fair values of investments 16,325 116,021 52,581 38,985 223,912
Net Cash Provided by Investing Activities 23,061 157,263 68,205 51,643 300,172
Net Increase (Decrease) in cash and cash equivalents 120,976 743,703 133,537 (514,531) 483,685
Cash and cash equivalents, beginning 2,901,666 18,410,189 10,357,318 6,728,360 38,397,533
Cash and cash equivalents, ending $3,022,642 $19,153,892 $10,490,855 $6,213,829 $38,881,218
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)$28,805 ($36,375) ($276,361) ($128,025) ($411,956)
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation 1,045,253 1,045,253
Other non-operating revenue (expenses)64,501 64,501
Net change in assets and liabilities:
Accounts receivable (357,701) (98,615)(456,316)
Deposit
Prepaid items (153,911)(153,911)
Accounts payable 22,497 115,211 (136,250) (68,035) (66,577)
Other payable 148,275 (32) 148,243
Accrued insurance losses 800,804 800,804
Compensated absence obligations 46,613 132,194 178,807
Net Cash Provided by (Used in) Operating Activities $97,915 $586,440 ($384,668) $849,161 $1,148,848
NONCASH TRANSACTIONS
Retirement of capital assets ($8,761) ($8,761)
146
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.
147
CITY OF SOUTH SAN FRANCISCO
CUSTODIAL FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2023
SSF Employee
Deferred Comp
Trust Oyster Point
Oversight CFD TOTAL
ASSETS
Cash and investments $95,626 $95,626
Interest receivable 619 $780 1,399
Restricted cash and investments 2,255,699 2,255,699
Total Assets 96,245 2,256,479 2,352,724
LIABILITIES
Accounts payable
Total Liabilities
NET POSITION
Restricted for others 96,245 96,245
Restricted for bondholders 2,256,479 2,256,479
Total Net Position $96,245 $2,256,479 $2,352,724
148
CITY OF SOUTH SAN FRANCISCO
CUSTODIAL FUNDS
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
SSF Employee
Deferred Comp
Trust Oyster Point
Oversight CFD TOTAL
ADDITIONS
Plan contributions $8,225 $8,225
Property taxes $1,013,213 1,013,213
Contribution from property owners
Interest and rentals 1,246 541,243 542,489
Total Additions 9,471 1,554,456 1,563,927
DEDUCTIONS
Professional services 50,777 18,754,886 18,805,663
Payments to bondholders 764,850 764,850
Total Deductions 50,777 19,519,736 19,570,513
Change in net position (41,306) (17,965,280) (18,006,586)
NET POSITION
Beginning of the year 137,551 20,221,759 20,359,310
End of the year $96,245 $2,256,479 $2,352,724
149
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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 of Taxable Property
2.Direct and 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.Redevelopment Pledged 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
151
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.
152
2014 2015 2016 2017 2018
Governmental activities
Net investment in capital assets $230,440,390 $230,517,037 $231,142,079 $254,344,554 $254,570,044
Restricted 42,367,623 49,311,828 52,406,602 54,478,093 96,316,988
Unrestricted (12,317,511) (134,389,522) (120,119,617) (86,808,434) (129,833,581)
Total governmental activities net position $260,490,502 $145,439,343 $163,429,064 $222,014,213 $221,053,451
Business-type activities
Net investment in capital assets $78,045,318 $78,598,277 $83,930,073 $86,167,704 $90,097,907
Restricted
Unrestricted 15,367,085 4,196,654 6,243,225 7,199,925 3,227,395
Total business-type activities net position $93,412,403 $82,794,931 $90,173,298 $93,367,629 $93,325,302
Primary government
Net investment in capital assets $308,485,708 $309,115,314 $315,072,152 $340,512,258 $344,667,951
Restricted 42,367,623 49,311,828 52,406,602 54,478,093 96,316,988
Unrestricted 3,049,574 (130,192,868) (113,876,392) (79,608,509) (126,606,186)
Total primary government net position $353,902,905 $228,234,274 $253,602,362 $315,381,842 $314,378,753
2019 2020 2021 2022 2023
Governmental activities
Net investment in capital assets $271,349,364 $296,243,640 $316,169,957 $384,765,508 $390,845,692
Restricted 117,752,590 138,701,991 160,119,056 139,059,768 130,124,884
Unrestricted (114,028,420) (130,288,161) (144,181,245) (126,989,026) (86,635,416)
Total governmental activities net position $275,073,534 $304,657,470 $332,107,768 $396,836,250 $434,335,160
Business-type activities
Net investment in capital assets $100,463,280 $111,968,328 $123,628,942 $133,598,554 $132,756,230
Restricted
Unrestricted 44,966 2,040,842 7,208,752 4,271,663 10,098,654
Total business-type activities net position $100,508,246 $114,009,170 $130,837,694 $137,870,217 $142,854,884
Primary government
Net investment in capital assets $371,812,644 $408,211,968 $439,798,899 $518,364,062 $523,601,922
Restricted 117,752,590 138,701,991 160,119,056 139,059,768 130,124,884
Unrestricted (113,983,454) (128,247,319) (136,972,493) (122,717,363) (76,536,762)
Total primary government net position $375,581,780 $418,666,640 $462,945,462 $534,706,467 $577,190,044
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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Unrestricted
Restricted
Invested in Capital Assets Net ofRelated Debt
153
CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2014 2015 2016 2017
Expenses
Governmental Activities:
General Government $7,155,035 $8,421,857 $9,044,518 $10,253,403
Fire Department 21,200,903 22,005,883 22,488,964 25,750,126
Police Department 24,376,379 23,910,436 23,158,168 25,838,242
Public Works 14,980,417 14,493,039 11,916,572 12,396,998
Park, Recreation and Maintenance Services 12,658,309 12,383,880 12,901,657 15,217,677
Library 4,310,550 4,300,885 4,442,577 5,184,282
Economic and Community Development 5,525,541 5,928,316 7,603,275 8,927,162
Interest on Long -Term Debt
Total Governmental Activities Expenses 90,207,134 91,444,296 91,555,731 103,567,890
Business-Type Activities:
Sewer Rental 19,301,103 23,969,579 18,273,580 22,661,768
Parking District 943,859 503,014 894,769 940,181
Storm Water 1,078,868 1,234,616 1,289,465 1,333,409
Total Business-Type Activities Expenses 21,323,830 25,707,209 20,457,814 24,935,358
Total Primary Government Expenses $111,530,964 $117,151,505 $112,013,545 $128,503,248
Program Revenues
Governmental Activities:
Charges for Services:
General Government $5,785,598 $3,946,302 $4,194,563 $2,225,049
Fire Department 3,304,952 3,520,275 3,450,524 4,242,940
Police Department 2,805,640 2,370,736 2,076,837 2,146,909
Public Works 4,734,813 5,071,729 10,361,525 10,869,608
Park, Recreation and Maintenance Services 3,571,947 3,708,272 3,744,137 3,756,369
Library 138,827 120,850 164,271 96,987
Economic and Community Development 5,800,849 5,337,177 6,131,463 3,911,597
Operating Grants and Contributions 5,601,916 5,753,845 5,581,492 4,533,539
Capital Grants and Contributions 1,538,225 632,735 1,147,337 577,995
Total Government Activities Program Revenues 33,282,767 30,461,921 36,852,149 32,360,993
Business-Type Activities:
Charges for Services:
Sewer Rental 19,155,467 19,798,033 19,569,341 19,897,769
Parking District 785,586 819,051 843,199 916,687
Storm Water 409,458 407,640 412,105 418,840
Operating Grants and Contributions 7,619,601 6,242,687 5,802,788 5,763,645
Capital Grants and Contributions
Total Business-Type Activities Program Revenue 27,970,112 27,267,411 26,627,433 26,996,941
Total Primary Government Program Revenues $61,252,879 $57,729,332 $63,479,582 $59,357,934
Net (Expense)/Revenue
Governmental Activities ($56,924,367) ($60,982,375) ($54,703,582) ($71,206,897)
Business-Type Activities 6,646,282 1,560,202 6,169,619 2,061,583
Total Primary Government Net Expense ($50,278,085) ($59,422,173) ($48,533,963) ($69,145,314)
154
2018 2019 2020 2021 2022 2023
$12,506,188 $12,139,671 $15,378,452 $19,611,586 $20,793,108 $24,977,978
30,352,387 31,986,738 34,442,874 34,492,838 28,530,628 36,852,200
30,732,288 32,994,122 36,095,698 33,376,962 35,635,007 37,885,983
18,379,278 20,425,958 17,737,243 7,567,745 7,544,142 21,880,934
17,162,377 17,962,298 19,620,848 17,159,696 19,482,582 23,539,372
5,910,406 6,241,093 6,728,102 6,274,811 6,060,920 6,639,706
10,094,626 10,557,116 9,837,938 11,728,168 12,034,671 12,923,609
512,376 2,200,344 4,686,930 6,891,224
125,137,550 132,306,996 140,353,531 132,412,150 134,767,988 171,591,006
24,397,607 25,719,049 26,213,885 26,644,459 26,246,647 30,654,615
1,202,319 896,994 1,116,840 1,338,092 1,170,305 1,272,157
1,026,948 1,188,182 1,206,694 922,057 1,309,360 1,460,610
26,626,874 27,804,225 28,537,419 28,904,608 28,726,312 33,387,382
$151,764,424 $160,111,221 $168,890,950 $161,316,758 $163,494,300 $204,978,388
$1,966,755 $7,930,983 $5,217,199 $6,968,307 $5,413,298 $9,249,087
6,327,921 6,052,804 6,073,247 5,952,872 7,857,602 9,231,756
2,230,824 2,351,491 2,092,791 1,642,726 2,878,353 2,299,209
24,727,897 27,811,701 23,355,636 24,859,635 17,734,041 9,071,365
4,489,665 4,293,474 2,872,786 1,165,630 3,058,826 3,927,532
102,124 105,466 97,603 19,037 1,054,339 60,300
13,052,441 14,214,991 9,067,781 4,275,808 28,676,546 19,532,657
5,827,149 12,091,079 8,757,554 8,021,958 10,852,746 12,919,660
2,515,868 1,629,730 4,930,640 5,498,698 3,342,651 2,031,351
61,240,644 76,481,719 62,465,237 58,404,671 80,868,402 68,322,917
22,417,156 24,078,076 24,296,811 24,705,044 22,778,206 23,891,045
1,084,472 1,180,538 1,003,222 764,514 993,986 1,062,751
656,315 540,679 412,707 410,745 412,842 418,583
5,834,455 6,452,950 7,440,041 14,815,460 5,663,695 6,237,114
5,252,622 4,276,151
29,992,398 32,252,243 33,152,781 40,695,763 35,101,351 35,885,644
$91,233,042 $108,733,962 $95,618,018 $99,100,434 $115,969,753 $104,208,561
($63,896,906) ($55,825,277) ($77,888,294) ($74,007,479) ($53,899,586) ($103,268,089)
3,365,524 4,448,018 4,615,362 11,791,155 6,375,039 2,498,262
($60,531,382) ($51,377,259) ($73,272,932) ($62,216,324) ($47,524,547) ($100,769,827)
155
2014 2015 2016 2017
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property Taxes $22,890,828 $24,650,648 $26,438,620 $29,023,618
Sales Taxes 12,725,141 13,932,125 15,188,686 24,087,776
Transient Occupancy Tax 11,174,017 12,947,473 13,393,437 13,631,507
Franchise fees 3,982,092 4,090,073
Other Taxes 8,141,010 8,650,056 5,124,574 5,708,187
Motor Vehicle In-Lieu 40,074 26,995 26,708 28,933
Property taxes in lieu of vehicle license fees 5,319,154 5,551,651 5,770,060 6,133,230
Interest Earnings 1,108,177 629,036 1,354,266 622,518
Gain from sale of property
Other 2,012,444 4,577,239 2,334,407 2,365,820
Extraordinary Item
Transfers (1,041,120) (1,429,308) (919,547) (1,105,038)
Special items 45,205,422
Total Government Activities 62,369,725 69,535,915 72,693,303 129,792,046
Business-Type Activities:
Interest Earnings 153,353 126,874 289,201 27,710
Transfers 1,041,120 1,429,308 919,547 1,105,038
Total Business-Type Activities 1,194,473 1,556,182 1,208,748 1,132,748
Total Primary Government $63,564,198 $71,092,097 $73,902,051 $130,924,794
Change in Net Position
Governmental Activities $5,445,358 $8,553,540 $17,989,721 $58,585,149
Business-Type Activities 7,840,755 3,116,384 7,378,367 3,194,331
Total Primary Government $13,286,113 $11,669,924 $25,368,088 $61,779,480
CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
Last Ten Fiscal Years
(continued)
(Accrual Basis of Accounting)
156
2018 2019 2020 2021 2022 2023
$29,551,445 $33,446,750 $37,415,367 $41,561,039 $40,011,221 $47,680,587
28,340,393 31,843,568 31,855,027 33,039,229 38,143,689 37,722,042
13,978,533 17,091,222 13,829,025 6,710,271 12,135,638 16,357,104
4,403,493 4,469,808 4,594,577 4,498,202 4,863,076 5,240,637
5,871,096 4,995,404 4,515,376 4,529,764 6,537,423 8,059,817
34,452 32,200 53,089 49,785 77,558 67,937
6,438,199 7,150,867 7,457,005 4,888,696 11,988,715 8,760,770
1,097,916 4,808,664 6,384,253 941,856 (6,724,092) 5,104,060
840,298 1,518,059 1,807,446
5,180,288 7,799,392 9,152,218 11,602,214 14,458,939 17,335,302
(1,997,377) (2,101,222) (8,060,646) (4,984,746) (1,419,235) (2,195,337)
(7,154,626) (531,591)276,939 (1,378,533) (2,962,923) (5,173,366)
85,743,812 109,845,360 107,472,230 101,457,777 118,628,068 140,766,999
37,072 633,704 824,916 52,623 (761,751) 291,068
1,997,377 2,101,222 8,060,646 4,984,746 1,419,235 2,195,337
2,034,449 2,734,926 8,885,562 5,037,369 657,484 2,486,405
$87,778,261 $112,580,286 $116,357,792 $106,495,146 $119,285,552 $143,253,404
$21,846,906 $54,020,083 $29,583,936 $27,450,298 $64,728,482 $37,498,910
5,399,973 7,182,944 13,500,924 16,828,524 7,032,523 4,984,667
$27,246,879 $61,203,027 $43,084,860 $44,278,822 $71,761,005 $42,483,577
157
CITY OF SOUTH SAN FRANCISCO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund
Nonspendable $14,163 $1,134 $33,580 $474 $106 $372 $574 $574 $4,099 $477,122
Restricted 20,582,335 19,201,948 18,372,633 18,372,633 14,763,033 2,823,118
Committed 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 20,536,653
Assigned 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 8,661,539
Unassigned 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 56,060,734
Total General Fund $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 $88,559,166 (a)
All Other Governmental Funds
Nonspendable $39,205
Restricted $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 $204,257,085
Assigned 6,188,554 367,023 29,363,924 29,363,924 24,889,824 20,229,463
Unassigned (521,604) (40,459)(88,331) (11,073) (2,971,345) 235,649 235,649 (1,437,892) (1,004,155)
Total all other governmental funds $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 $223,482,393
#REF!#REF!62,399,893 70,866,831 76,323,105 76,323,105 111,411,392 254,856,817 312,041,559
(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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Thousands
Total Committed
Total Unassigned
Total Assigned
Total Restricted
Total Nonspendable
158
This Page Left Intentionally Blank
CITY OF SOUTH SAN FRANCISCO
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2014 2015 2016 2017
Revenues
Property Taxes $23,010,136 $24,650,648 $26,438,620 $35,156,848
Other Taxes 33,931,446 38,275,478 41,811,097 49,608,385
Intergovernmental revenues 10,757,440 10,453,071 12,360,354 4,019,771
Interest and Rents 3,632,693 3,531,966 4,207,453 3,100,692
Licenses and permits 4,366,271 4,795,158 6,896,897 7,823,403
Charges for services 16,864,409 13,387,712 15,386,358 14,485,367
Fines and forfeitures 1,528,319 1,221,413 791,756 899,118
Other 2,249,728 4,660,668 2,439,579 2,906,625
Total Revenues 96,340,442 100,976,114 110,332,114 118,000,209
Expenditures
Current:
General government 5,970,429 7,167,969 8,469,924 9,399,930
Fire Department 20,163,759 21,247,989 24,175,340 25,632,366
Police Department 23,309,568 23,611,743 25,458,986 25,998,097
Public works 16,791,894 15,923,071 14,846,346 12,143,965
Recreation and Community Services 11,552,502 11,826,407 13,234,028 14,897,157
Library 3,987,928 4,247,650 4,681,188 5,157,355
Economic and Community Development 5,972,966 5,917,508 7,907,655 8,943,111
Other 480,290 395,749 274,183
Capital outlay
Debt service:
Principal repayment 453,381 352,674 656,000 23,000
Interest and fiscal charges
Total Expenditures 88,202,427 90,775,301 99,825,216 102,469,164
Excess (deficiency) of revenues over
(under) expenditures 8,138,015 10,200,813 10,506,898 15,531,045
Other Financing Sources (Uses)
Transfers in 21,870,234 17,983,227 8,143,075 14,327,130
Transfers (out)(24,149,582) (19,717,102) (13,193,699)(16,368,499)
Lease revenue bonds issued
Premium on bonds
Sale of capital assets 1,016,276
Loss on sale of property held for resale
Total other financing sources (uses)(2,279,348)(1,733,875)(5,050,624)(1,025,093)
Net Change in fund balances
before extraordinary and special items 5,858,667 8,466,938 5,456,274 14,505,952
Extraordinary item
Special item 20,582,335
Net change in fund balances $5,858,667 $8,466,938 $5,456,274 $35,088,287
Debt service as a percentage of
noncapital expenditures 0.6%0.4%0.7%0.0%
For The Fiscal Year Ended June 30,
160
2018 2019 2020 2021 2022 2023
$35,989,644 $40,597,617 $44,872,372 $46,449,735 $51,999,936 $56,441,357
54,597,272 60,721,378 57,214,783 51,008,432 64,411,396 70,762,243
8,433,240 13,179,593 18,317,060 17,867,273 24,822,304 19,574,277
3,524,727 7,231,303 8,864,998 3,620,391 (2,537,324)7,857,199
14,674,809 15,381,416 15,900,500 15,589,002 14,062,474 20,467,644
31,961,419 41,055,659 27,442,005 23,191,413 45,787,046 27,477,040
423,604 926,729 814,354 535,750 700,961 757,019
6,454,460 7,994,701 3,067,691 7,893,148 2,524,116 11,321,587
156,059,175 187,088,396 176,493,763 166,155,144 201,770,909 214,658,366
10,403,449 10,166,977 12,453,262 12,112,319 15,422,722 15,449,760
26,059,072 27,576,879 28,161,459 31,817,325 32,597,540 35,641,540
26,970,854 28,533,292 37,468,430 70,954,323 39,678,917 36,493,052
23,859,399 38,459,963 40,070,330 51,501,254 87,823,372 89,991,879
15,468,370 16,530,603 17,130,302 15,795,645 20,295,842 22,598,050
5,379,836 5,628,693 5,940,870 5,903,883 6,495,279 6,475,274
9,338,793 9,085,390 8,780,903 11,227,503 12,709,167 12,775,661
256,298 333,024 723,901 3,490,091 5,610,278 2,161,116
5,520,422 141,250
2,382,000 3,464,000 1,210,000 975,000 4,635,000 3,285,000
739,146 2,307,460 5,525,760 8,280,065
120,118,071 139,778,821 152,678,603 206,084,803 236,314,299 233,292,647
35,941,104 47,309,575 23,815,160 (39,929,659)(34,543,390)(18,634,281)
26,486,651 22,230,499 38,117,966 37,970,252 36,220,467 30,464,581
(30,795,941)(24,581,721)(46,647,023)(43,202,081)(38,772,007)(33,708,360)
43,905,000 86,410,000 65,420,000
10,242,530 18,116,565 6,686,317
3,990,605 840,298 (2,718,691)1,507,641 1,852,123
(6,439,913)
(318,685)(1,510,924)45,618,473 96,576,045 71,062,418 (7,831,569)
35,622,419 45,798,651 69,433,633 56,646,386 36,519,028 (26,465,850)
(7,154,626)(531,591)276,939 (1,378,533)(2,962,923)(5,173,366)
$28,467,793 $45,267,060 $69,710,572 $55,267,853 $33,556,105 ($31,639,216)
2.2%3.0%1.7%2.9%7.0%7.3%
For The Fiscal Year Ended June 30,
161
Real Property Net Taxable value
Fiscal
Year
Residential
Property
Commercial
Property
Industrial
Property Other
Total Secured
Property
Unsecured
Property Total Assessed (a)
Estimated Full
Market (a)
Total
Direct Tax
Rate (b)
2014 5,900,441,192$ 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%
2023 10,164,770,095$ 4,381,130,308$ 10,124,533,866$ 656,275,416$ 25,326,709,685$ 2,403,730,974$ 27,730,440,659$ 27,730,440,659$ 0.13605%
Source: HdL Coren & Cone, San Mateo County Assessor 2013/14-2022/23 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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Mi
l
l
i
o
n
s
Total Secured Property Unsecured Property
162
Fiscal Basic School Total Direct/Overlapping
Year Levy Districts Tax Rates
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)
2023 1.000 0.1408 1.1408 (1,29)
Notes:
Source: HDL, Coren & Cone (San Mateo County Assesor 2013/14 -2022/23 Tax Rate Table
(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.
(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.
(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.
(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.
(29) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0499, which includes SSFUSD & San Mateo Jr College bond. 4
has a rate of 1.1102 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SMCCCD 2021 and SM Jr
College bonds. 1 has a rate of 1.1026, which includes San Bruno Pk Elem bond, SM Union High bond, SM High, SMCCCD
2021 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.
(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.
163
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.*3,156,586,644$ 1 11.38% 1,786,247,540$ 1 12.49%
HCP Oyster Point III LLC 861,135,005 2 3.11%--
Slough SSF LLC 706,344,528 3 2.55% 1,057,879,509 2 7.40%
ARE San Francisco LLC*560,376,454 4 2.02% 227,558,340 4 1.59%
GNS North Tower LP*475,429,011 5 1.71%--
BMR 1000 Gateway LP*455,894,074 6 1.64%--
Kilroy Realty 447,345,388 7 1.61%--
GNS South Tower LP*435,506,434 8 1.57%--
Britannia Pointe Grand LP 332,388,936 9 1.20% 286,079,475 3 --
United Airlines Inc 292,552,819 10 1.05% 192,172,702 5 --
Myers Peninsula Venture LLC*-- 138,793,737 6 0.97%
Gateway Center LLC -- 137,981,651 7 0.96%
BMR 180 Oyster Point LLC*-- 129,633,840 8 0.91%
ASN Solaire LLC -- 106,660,104 9 0.75%
ARE San Francisco No 41 EXCH LLC -- 103,253,158 10 0.72%
Subtotal 7,723,559,293$ 27.85% 4,166,260,056$ 29.13%
Total Net Assessed Valuation:
Fiscal Year 2022-23 27,730,440,659$
Fiscal Year 2013-14 14,304,352,770$
* Pending Appeals on Parcels
HdL Coren & Cone, 2013/14 & 2022/23 Top Ten Property Taxpayers (Net Values).
San Mateo County Assessor 2013/14 & 2022/23 Combined Tax Rolls and the SBE Non Unitary Tax Roll
Source:
2022-23 2013-14
CITY OF SOUTH SAN FRANCISCO
Principal Property Tax Payers
Current Year and Nine Years Ago
164
Fiscal Percent of
Year Allocations (5) Collections Delinquencies Delinquent taxes
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%
2023 25,780,768 (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
$26
$27
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Mi
l
l
i
o
n
s
165
CITY OF SOUTH SAN FRANCISCO
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Loans from Lease
Fiscal Successor Revenue Financing
Year Agency Bonds Lease Total
2014 11,722,826$ -$ 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
2023 2,050,152 220,225,077 - 222,275,229
Business-Type Activities
Sewer State Water Total Percentage
Fiscal Revenue Resources Primary of Personal Per
Year Bonds Loans Total Government Income (a) Capita (a)
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 8.55% 4,506.43
2023 1,620,000 58,447,078 60,067,078 282,342,307 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
$250
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Mi
l
l
i
o
n
s
Total Governmental Total Business
166
CITY OF SOUTH SAN FRANCISCO
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2023
2022-23 Assessed Valuation:27,730,440,659$
Redevelopment Incremental Valuation:-
Adjusted Assessed Valuation:27,730,440,659$
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2023 % Applicable (1) Debt 6/30/23
San Mateo Community College District 708,837,622$ 9.614% 68,147,649$
Jefferson Union High School District 289,848,562 4.350 12,608,412
South San Francisco Unified School District 308,886,397 91.506 282,649,586
Brisbane School District 30,481,439 24.203 7,377,423
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 390,468,070$
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Mateo County General Fund Obligations 589,931,687$ 9.614% 56,716,032$
San Mateo County Board of Education Certificates of Participation 6,120,000 9.614 588,377
San Mateo County Flood Control and Sea LRR District General Fund Obligations 13,890,000 62.238 8,644,858
South San Francisco Unified School District General Fund Obligations 2,770,000 91.506 2,534,716
Jefferson Union High School District Certificates of Participation 47,490,000 4.350 2,065,815
City of South San Francisco Lease Revenue Bonds 220,225,077 100.000 220,225,077
City of South San Francisco Loans Payable 2,050,152 100.000 2,050,152
San Mateo County Mosquito and Vector Control District General Fund Obligations 3,617,831 9.614 347,818
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT:293,172,845$
TOTAL DIRECT DEBT 222,275,229$
Total Overlapping Debt 461,365,686$
COMBINED TOTAL DEBT 683,640,915$ (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 asse
Ratios to Adjusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.41%
Total Direct Debt 0.80%
Combined Total Debt 2.47%
Source: California Municipal Statistics, Inc. and City of South San Francisco
510-658-2640 Austin Busch
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
167
ASSESSED VALUATION:27,730,440,659$
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)1,039,891,525$
LESS AMOUNT OF DEBT SUBJECT TO LIMIT:-
LEGAL BONDED DEBT MARGIN 1,039,891,525$
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
2014 536,413,229$ -$ 536,413,229$ 0.00%
2015 558,585,910 - 558,585,910 0.00%
2016 580,561,386 - 580,561,386 0.00%
2017 617,102,145 - 617,102,145 0.00%
2018 647,787,001 - 647,787,001 0.00%
2019 719,492,940 - 719,492,940 0.00%
2020 784,957,532 - 784,957,532 0.00%
2021 870,065,495 - 870,065,495 0.00%
2022 924,439,440 - 924,439,440 0.00%
2023 1,039,891,525 - 1,039,891,525 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, 2023
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.
168
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
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
2023 30,343,556 22,399,721 7,943,835 360,000 90,000 450,000 17.65
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
$40
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Mi
l
l
i
o
n
s
Revenue (1)
Expenses (2)
169
CITY OF SOUTH SAN FRANCISCO
SEWER DEBT SERVICE COVERAGE
SEWER RENTAL ENTERPRISE FUND
LAST EIGHT FISCAL YEARS
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023
Revenues
Service Charges 19,515,093$ 19,750,636$ 22,188,154$ 23,556,871$ 24,150,139$ 24,526,952$ 22,567,226$ 23,180,130$
Connection and Other Fees 104,283 147,134 229,002 521,205 146,672 178,092 210,980 710,915
Interest Income 238,389 23,552 31,061 488,437 623,256 41,888 (652,348) 215,397
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 6,237,114
Total Revenues 25,610,530$ 25,684,966$ 28,282,672$ 30,393,993$ 31,807,110$ 33,885,393$ 27,789,553$ 30,343,556$
Operating Expenses (2)18,759,650$ 13,514,718$ 19,073,943$ 20,398,147$ 21,064,167$ 21,401,330$ 21,049,553$ 22,399,721$
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$ 7,943,835$
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$ 6,088,369$
CSCDA Series 2005D Revenue Bonds 178,036 167,284 155,706 143,608 130,815 117,175 102,716 85,562
Total Parity Debt 5,627,728$ 5,622,031$ 5,624,881$ 5,620,683$ 5,616,402$ 5,614,223$ 5,613,163$ 6,173,931$
Total Parity Debt Service Coverage 1.22 2.16 1.64 1.78 1.91 2.22 1.20 1.29
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 excluding construction interest
(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.
170
CITY OF SOUTH SAN FRANCISCO
REDEVELOPMENT PLEDGED REVENUE COVERAGE
LAST TEN 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
2014 1,545,000$ 2,971,344$ 4,516,344$ 2014 220,000$ 69,780$ 28,780$
2015 1,605,000 2,904,331 4,509,331 2015 230,000 58,750 288,750
2016 1,680,000 2,834,619 4,514,619 2016 245,000 46,875 291,875
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
2023 2023
Bond was paid off in fiscal year 2017
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements
Year Revenue Principal Interest Total Coverage
2014 1,545,000$ 2,971,344$ 4,516,344$
2015 1,605,000 2,904,331 4,509,331
2016 1,680,000 2,834,619 4,514,619
2017 1,745,000 2,761,756 4,506,756
2018 - - -
2019 - - -
2020 - - -
2021 - - -
2022 - - -
2023 - - -
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)
171
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
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%
2022 64,323 3,391,203 52,721 2.6% 729,181 8.82%
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%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
City Unemployment Rate
8.20%
8.30%
8.40%
8.50%
8.60%
8.70%
8.80%
8.90%8.79%8.82%
8.44%
8.56%
8.70%8.72%
8.85%
8.77%8.74%
8.82%
City Population % of County
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
City Per Capita Personal Income
172
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment
Genentech Inc.8,637 1 13.4% 7,945 1 12.2%
Verily Life Sciences LLC 2,220 2 3.5%
ABBVIE 1,000 3 1.6%
Costco Wholesale (4 stores)834 4 1.3% 510 4 0.8%
Life Technologies Corporation 622 5 1.0% 600 3 0.9%
Amgen Inc 600 6 0.9% 406 5 0.6%
Amazon.com Services 409 7 0.6%
ZS Associates, Inc 390 8 0.6%
Goodwill Industries of San Francisco 384 9 0.6%
MRL San Francisco, LLC 317 10 0.5%
Onyx Pharmaceuticals Inc 650 2 1.0%
Successfactors, Inc 400 6 0.6%
American Etc Inc/ Royal Laundry 284 7 0.4%
The New French Bakery, Inc 281 8 0.4%
Oroweat/ Entenmann's 264 9 0.4%
Theravance Biopharma U.S.258 10 0.4%
Subtotal 15,413 24.0% 11,598 17.8%
Total City Population 64,323 65,127
Data Sources:
(1) SSF Business License Database- Business licenses expiring 12/31/23.
(2) City of South San Francisco CAFR 2013-14
(3) Population: HDL/California State Dept of Finance 2022.
2013-142022-23
CITY OF SOUTH SAN FRANCISCO
Principal Employers
Current Year and Nine Years Ago
173
Function 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Government (1) 37.60 40.60 47.10 47.10 43.60 41.60 46.60 46.60 51.30 59.38
Fire Department (2)82.98 83.48 92.68 92.68 92.68 91.93 91.68 91.68 93.49 93.49
Police Department 119.75 118.87 120.87 120.87 120.87 122.87 121.87 120.92 122.09 122.44
Park, Rec. & Maintenance Services 117.21 121.31 134.16 137.19 144.29 144.79 151.75 143.84 150.44 179.26
Library 37.66 37.71 38.71 39.26 40.49 41.49 41.49 38.56 38.15 44.06
Economic and Comm. Development 24.40 26.15 27.15 29.40 30.40 30.40 31.40 29.00 31.40 32.40
Public Works (2) 47.21 47.68 49.00 49.00 49.00 53.00 52.00 47.00 52.85 59.37
Water Quality Control Plant 39.63 39.06 41.74 41.50 41.50 41.50 41.50 41.50 41.50 41.50
Total 506.44 514.86 551.41 557.00 562.83 567.58 578.29 559.10 581.22 631.90
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 FY2014-2023 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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Government (1)Fire Department (2)Police Department Park, Rec. & Maintenance Services
Library Economic and Comm. Development Public Works (2)Water Quality Control Plant
174
CITY OF SOUTH SAN FRANCISCO
Operating Indicators by Function/Program
Last Nine Fiscal Years
2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
Public safety:
Fire:
Inspections conducted 1,817 2,563 3,426 2,292 2,511 2,375 3,888 3,060 2,421Police: Police calls for service 31,532 32,477 33,313 34,811 38,299 38,541 40,503 60,333 59,580
Law violations:
Part I crimes 1,874 2,126 2,103 2,276 2,007 2,070 3,481 1,955 1,892
Physical arrests (adult and juvenile)1,933 2,071 1,870 1,891 1,943 1,871 1,635 2,025 1,780
Traffic violations 3,828 4,211 3,785 3,359 3,620 4,172 2,119 1,985 1,799
Parking violations 13,378 12,006 15,291 18,339 26,228 12,269 13,276 17,667 16,995Public worksStreet resurfacing (miles) (Eng Div) 0 2 8 3.3 7.0 7.9 19.57 9.60 6.55
Potholes repaired (square miles
prior)/(square feet)0.11 2 0 (2) 3221 410 190 165 264 267Asphalt used for street repairs (tons) 250 151 94 148 13 46 69 68 44.5
Culture and recreation: Recreation class participants* 26,879 23,399 23,939 25,688 23,394 17,333 (4) 5,282 8,631 10,021
Library:Total items borrowed 643,630 565,806 558,106 544,059 582,497 (3) 450,637 (3) 245,869 456,652 439,846Items in collection 130,106 (1) 208,400 209,895 219,114 228,224 247,393 260,205 229,891 283,792
WastewaterResidential connections 16,470 16,491 16,488 12,556 12,559 12,549 12,571 12,672 12,673Commercial connections 1,560 1,561 1,562 1,575 1,576 1,582 1,575 1,523 1,508Other connections 128 131 140 140 140 140 140 140 140
Average daily sewage treatment
(millions of gallons)8.89 7.92 8.41 8.62 8.62 7.12 6.76 7.35 7.45
Note: N/A denotes information not available.
* Registration counts excludes all withdrawals from the classes for the year.
(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.
175
CITY OF SOUTH SAN FRANCISCO
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/ProgramPublic safety:
Fire stations 5555555555Police stations 1111111111Police Fleet 50 53 53 52 59 63 60 63 60 63
Public worksMiles of streets 127 127 127 127 127 127 127 127 127 139.6Street lights 4,505 4,505 4,505 4,505 4,531 4,531 4,531 4,581 4,581 4,581Parking District lights (3)20 20 20 16 16 16 16 16 16 16Traffic Signals 74 74 76 76 76 76 76 80 80 80
Culture and recreation:
Community services:City parks 28 28 28 28 28 28 28 28 28 30City parks acreage 190 190 190 190 190 210 210 210 210 225Playgrounds (4)24 24 24 24 24 24 34 34 34 35City trails 6666666666
Community gardens 1111111111
Community centers 4444444444Senior centers (2)1111111111Skate Park 1111111111Dog park 1111111111Swimming pools 1111111111
Tennis courts 7777777777
Basketball Courts 12 12 12 12 12 12 12 12 12 12Baseball/softball diamonds11111111111111111113
Soccer/football fields 5555555554
Library:City Libraries (1)2222222222
WastewaterMiles of sanitary sewers 164 164 164 164 164 164 164 164 164 164Miles of storm sewers 125 125 125 125 125 125 125 125 125 125Number of treatment plants 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 2017- Lot 6 sold for Rotary Plaza development.
(4) Year 2020 -Playgrounds in the Common Greens areas are now included.
176
2019 2020 2021 2022 2023
Transient Occupancy Tax Detail
TOT Collected 15,535,213$ 12,591,459$ 6,215,172$ 11,268,807$ 15,188,739$
1% Measure I Special Tax 1,556,009 1,114,911 495,099 866,831 1,168,365
Total TOT Collection 17,091,222$ 13,706,371$ 6,710,270$ 12,135,638$ 16,357,104$
1% Measure I Special Tax Use
Police 311,202$ 222,982$ 99,020$ 173,366$ 233,673$
Fire 311,202 222,982 99,020 173,366 233,673
Library 311,202 222,982 99,020 173,366 233,673
Parks 311,202 222,982 99,020 173,366 233,673
Recreation 311,202 222,982 99,020 173,366 233,673
Total 1% Measure I Special Tax 1,556,010$ 1,114,911$ 495,099$ 866,831$ 1,168,365$
* 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 Five Fiscal Years
177
This Page Left Intentionally Blank
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM
DATE: February 7, 2024
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, City Manager
SUBJECT: Independent Verification of Fiscal Year 2022-23 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 2022-23
Annual Comprehensive Financial Report, independently verifies the accuracy of the audited
reports regarding Measure W revenues and expenditures for Fiscal Year 2022-23, and
independently confirms the Measure W funds collected were received and spent in accordance
with the Measure W ballot measure language in FY 2022-23.
Respectfully Submitted,
Engy del Rosario
Chair, Measure W Citizen’s Oversight Committee
Orange Memorial Park - Sports Field
Library | Parks and Recreation Center
Library | Parks and Recreation Center
Library | Parks and Recreation Center
Orange Memorial Park - Aquatic Center
Orange Memorial Park - Aquatic Center
Pavement
Management Program
Projects
Measure W Citizens’ Oversight Committee
Feb 7, 2024
Pavement Management Program Projects
Innovative
Maintenance
Approach
•Measure W and Lease Revenue Bonds
•Historically low interest rates
•Front loaded funds
•Maximize economy of paving scale
•>$2 million per year savings in future
maintenance
•Significant roadway improvements
Pavement Management Program Projects
Pavement Management Program Projects
2022 West of 101 Rehabilitation Projects
$19.7 M in
Construction Costs
Focused on Streets with
Poor/Very Poor Condition
Treated 21.0 CL miles
(18% of entire network)
Pavement Management Program Projects
Pavement Condition Index (PCI)
Before & After Construction
PCI Before = 71
9/30/2021
PCI After = 78
10/31/2023
Pavement Management Program Projects
Pavement Maintenance Plan –Surface Seal Schedule
Innovative Program Allows
for Surface Seal by Area to
Reduce Construction Costs
and
Future Maintenance Costs
Pavement Management Program Projects
2023 Surface Seal Project (Areas 3 & 4)
$5.145 M in
Construction Costs
(Measure W $2.2 M)
Focused on Preventive
Maintenance
Surface Seal Treatment
Treat 302,000 Sq Yards
of Asphalt Pavement
(11% of entire network)
Pavement Management Program Projects
2023 Street Surface Seal (Areas 3 & 4)
Construction in
Spring of 2024
Pavement Management Program Projects
Refreshed Lane Line Striping, Legends and Crosswalks
Karen Chang, Director of Finance
February 7, 2024
Presentation to
Measure W Citizens’
Oversight Committee
Financial Update
2
Date Principal Interest Debt Service
6/1/2020 0 407,156 407,156
6/1/2021 935,000 1,832,200 2,767,200
6/1/2022 980,000 1,785,450 2,765,450
6/1/2023 1,030,000 1,736,450 2,766,450
6/1/2024 1,080,000 1,684,950 2,764,950
6/1/2025 1,135,000 1,630,950 2,765,950
6/1/2026 1,190,000 1,574,200 2,764,200
6/1/2027 1,250,000 1,514,700 2,764,700
6/1/2028 1,310,000 1,452,200 2,762,200
6/1/2029 1,365,000 1,399,800 2,764,800
6/1/2030 1,420,000 1,345,200 2,765,200
6/1/2031 1,475,000 1,288,400 2,763,400
6/1/2032 1,535,000 1,229,400 2,764,400
6/1/2033 1,595,000 1,168,000 2,763,000
6/1/2034 1,660,000 1,104,200 2,764,200
6/1/2035 1,725,000 1,037,800 2,762,800
6/1/2036 1,795,000 968,800 2,763,800
6/1/2037 1,870,000 897,000 2,767,000
6/1/2038 1,940,000 822,200 2,762,200
6/1/2039 2,020,000 744,600 2,764,600
6/1/2040 2,100,000 663,800 2,763,800
6/1/2041 2,185,000 579,800 2,764,800
6/1/2042 2,270,000 492,400 2,762,400
6/1/2043 2,365,000 401,600 2,766,600
6/1/2044 2,460,000 307,000 2,767,000
6/1/2045 2,555,000 208,600 2,763,600
6/1/2046 2,660,000 106,400 2,766,400
Total 43,905,000 28,383,256 72,288,256
Outstanding 40,960,000 22,622,000 63,582,000
Series 2020 Bond Debt Service
3
Date Principal Interest Debt Service
6/1/2020 0 0 0
6/1/2021 0 0 0
6/1/2022 2,210,000 3,312,383 5,522,383
6/1/2023 2,155,000 3,368,000 5,523,000
6/1/2024 2,240,000 3,281,800 5,521,800
6/1/2025 2,330,000 3,192,200 5,522,200
6/1/2026 2,425,000 3,099,000 5,524,000
6/1/2027 2,520,000 3,002,000 5,522,000
6/1/2028 2,625,000 2,901,200 5,526,200
6/1/2029 2,725,000 2,796,200 5,521,200
6/1/2030 2,835,000 2,687,200 5,522,200
6/1/2031 2,950,000 2,573,800 5,523,800
6/1/2032 3,065,000 2,455,800 5,520,800
6/1/2033 3,190,000 2,333,200 5,523,200
6/1/2034 3,315,000 2,205,600 5,520,600
6/1/2035 3,450,000 2,073,000 5,523,000
6/1/2036 3,590,000 1,935,000 5,525,000
6/1/2037 3,730,000 1,791,400 5,521,400
6/1/2038 3,880,000 1,642,200 5,522,200
6/1/2039 4,035,000 1,487,000 5,522,000
6/1/2040 4,195,000 1,325,600 5,520,600
6/1/2041 4,365,000 1,157,800 5,522,800
6/1/2042 4,540,000 983,200 5,523,200
6/1/2043 4,720,000 801,600 5,521,600
6/1/2044 4,905,000 612,800 5,517,800
6/1/2045 5,105,000 416,600 5,521,600
6/1/2046 5,310,000 212,400 5,522,400
Total 86,410,000 51,646,983 138,056,983
Outstanding 82,045,000 44,966,600 127,011,600
Series 2021 Bond Debt Service
4
Date Principal Interest Debt Service
6/1/2020 0 0 0
6/1/2021 0 0 0
6/1/2022 0 0 0
6/1/2023 0 3,175,615 3,175,615
6/1/2024 0 3,238,588 3,238,588
6/1/2025 1,705,000 3,238,588 4,943,588
6/1/2026 1,795,000 3,153,338 4,948,338
6/1/2027 1,880,000 3,063,588 4,943,588
6/1/2028 1,975,000 2,969,588 4,944,588
6/1/2029 2,075,000 2,870,838 4,945,838
6/1/2030 2,180,000 2,767,088 4,947,088
6/1/2031 2,290,000 2,658,088 4,948,088
6/1/2032 2,400,000 2,543,588 4,943,588
6/1/2033 2,520,000 2,423,588 4,943,588
6/1/2034 2,650,000 2,297,588 4,947,588
6/1/2035 2,780,000 2,165,088 4,945,088
6/1/2036 2,920,000 2,026,088 4,946,088
6/1/2037 3,065,000 1,880,088 4,945,088
6/1/2038 3,220,000 1,726,838 4,946,838
6/1/2039 3,380,000 1,565,838 4,945,838
6/1/2040 3,550,000 1,396,838 4,946,838
6/1/2041 3,725,000 1,219,338 4,944,338
6/1/2042 3,875,000 1,070,338 4,945,338
6/1/2043 4,030,000 915,338 4,945,338
6/1/2044 4,240,000 703,763 4,943,763
6/1/2045 4,465,000 481,163 4,946,163
6/1/2046 4,700,000 246,750 4,946,750
Total 65,420,000 49,797,540 115,217,540
Outstanding 65,420,000 46,621,925 112,041,925
Series 2022 Bond Debt Service
5
Date Principal Interest Debt Service
6/1/2020 0 407,156 407,156
6/1/2021 935,000 1,832,200 2,767,200
6/1/2022 3,190,000 5,097,833 8,287,833
6/1/2023 3,185,000 8,280,065 11,465,065
6/1/2024 3,320,000 8,205,338 11,525,338
6/1/2025 5,170,000 8,061,738 13,231,738
6/1/2026 5,410,000 7,826,538 13,236,538
6/1/2027 5,650,000 7,580,288 13,230,288
6/1/2028 5,910,000 7,322,988 13,232,988
6/1/2029 6,165,000 7,066,838 13,231,838
6/1/2030 6,435,000 6,799,488 13,234,488
6/1/2031 6,715,000 6,520,288 13,235,288
6/1/2032 7,000,000 6,228,788 13,228,788
6/1/2033 7,305,000 5,924,788 13,229,788
6/1/2034 7,625,000 5,607,388 13,232,388
6/1/2035 7,955,000 5,275,888 13,230,888
6/1/2036 8,305,000 4,929,888 13,234,888
6/1/2037 8,665,000 4,568,488 13,233,488
6/1/2038 9,040,000 4,191,238 13,231,238
6/1/2039 9,435,000 3,797,438 13,232,438
6/1/2040 9,845,000 3,386,238 13,231,238
6/1/2041 10,275,000 2,956,938 13,231,938
6/1/2042 10,685,000 2,545,938 13,230,938
6/1/2043 11,115,000 2,118,538 13,233,538
6/1/2044 11,605,000 1,623,563 13,228,563
6/1/2045 12,125,000 1,106,363 13,231,363
6/1/2046 12,670,000 565,550 13,235,550
Total 195,735,000 129,827,779 325,562,779
Outstanding 188,425,000 114,210,525 302,635,525
Aggregate Bond Debt Service
6
$-
$2,500,000
$5,000,000
$7,500,000
$10,000,000
$12,500,000
$15,000,000
$17,500,000
$20,000,000
$22,500,000
$25,000,000
$27,500,000
$30,000,000
2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045
FY19 Measure W Receipts = $12.6 million
FY20 Measure W Receipts = $11.7 million
FY21 Measure W Receipts = $13.4 million
FY22 Measure W Receipts = $15.4 million
FY23 Measure W Receipts = $15.6 million
Civic Campus Cash
Expenditures SERIES 2022A – Aquatic Center and Sports Field Debt Service
SERIES 2020A – Police Station Debt Service
SERIES 2021A – Library, Parks and Recreation Debt Service
Measure W Cashflow
Measure W Projected
Revenues1
71Assumes 2.00% growth in sales tax receipts from FY 2023 – 2046
Bond Sale Statistics
Series 2022
(Pool + Sports Field)
Series 2021
(LPR + Streets)
Series 2020
(Police Station)
Description
6/8/20226/16/20213/11/2020Delivery Date
$ 65,000,000$ 104,000,000$ 53,800,000Bond Proceeds
4.03%2.29%2.27%Total Interest Cost
$ 4,804,623$ 5,531,499$ 2,756,755 Average Annual Debt Service
$ 115,217,540$ 138,056,983$ 72,288,256Total Debt Service
LPR Project $76 M
Streets Project $24 M
Solar Project $ 4 M
Sports Field $12.3 M
Aquatic Center $49.0 M
Bridges $1.5 M
Playground $2.2 M
8
QUESTIONS
9
01/26/2024
CITY OF SOUTH SAN FRANCISCO
1
1:00PM
Page:revdetl.rpt Revenue Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
Account Number
Adjusted
Estimate
Revenues
Year-to-date
Revenues
Balance
Prct
Rcvd
101-00000 NON EXPENSE ACCT
101-00000-30000 TAXES
101-00000-30207 MEASURE W AND USE TAX (0.5%) 16,000,000.00 0.00 0.00 16,000,000.00 0.00
1,373,964.27 1017/24/2023 gl_crj CR 78121
Line Description: Measure W Sales Tax
-1,373,964.27 1017/24/2023 acrul_r_je GJ 78224-R
Line Description: FY 22-23 LOCAL TAXES-ST OF CA
-1,159,169.73 1018/28/2023 acrul_r_je GJ 78298-R
Line Description: 2nd qtr sales tax accrual
1,159,169.73 1018/28/2023 gl_crj CR 78272
Line Description: Measure W Sales Tax
1,288,074.61 1019/25/2023 gl_crj CR 78429
Line Description: Measure W Sales Tax
1,305,470.59 10110/24/2023 gl_crj CR 78561
Line Description: Measure W Sales Tax
1,612,952.70 10111/27/2023 gl_crj CR 78680
Line Description: Measure W Sales Tax
1,159,943.19 10112/26/2023 gl_crj CR 78912
Line Description: Measure W Sales Tax
101-00000-30207 MEASURE W AND USE TAX (0.5%) 5,366,441.09 5,366,441.09 33.54 16,000,000.00 10,633,558.91
Total MEASURE W 33.54 5,366,441.09 5,366,441.09 16,000,000.00 10,633,558.91
Grand Total 5,366,441.09 5,366,441.09 33.54 16,000,000.00 10,633,558.91
1Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
1
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
NON EXPENSE ACCT00000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-00000-6000 CAPITAL OUTAY
Total CAPITAL OUTAY 0.00 0.00 0.00 0.00 0.00 0.00
101-00000-9000 TRANSFERS
101-00000-9461 TRANSFER OUT TO DEBT SERVICE 0.00 0.00 8,286,750.00 0.00 8,286,750.00 0.00
1,640,900.00 11/22/2023 invoice IN CT2113941
101Line Description: CIVIC CAMPUS & CAPITAL PROJECT
Vendor: 025051 BANK OF NEW YORK MELLON Check # 11302023
842,475.00 11/22/2023 invoice IN SOSANFRAN20A
101Line Description: PUBLIC FACILITIES FINANCING AU
Vendor: 025051 BANK OF NEW YORK MELLON Check # 11302023
2,483,375.00 2,483,375.00 29.97101-00000-9461 TRANSFER OUT TO DEBT SERVICE 0.00 5,803,375.00 8,286,750.00
29.97 2,483,375.00 2,483,375.00 0.00 5,803,375.00 8,286,750.00Total NON EXPENSE ACCT
1Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
2
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
CITY COUNCIL01000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-01000-5000 SUPPLIES & SERVICES
0.00 0.00 0.00 0.00 0.00 0.00Total CITY COUNCIL
2Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
3
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
CITY CLERK02000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-02000-5000 SUPPLIES & SERVICES
0.00 0.00 0.00 0.00 0.00 0.00Total CITY CLERK
3Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
4
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
CITY TREASURER03000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-03000-5000 SUPPLIES & SERVICES
0.00 0.00 0.00 0.00 0.00 0.00Total CITY TREASURER
4Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
5
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
CITY ATTORNEY04000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-04000-5000 SUPPLIES & SERVICES
0.00 0.00 0.00 0.00 0.00 0.00Total CITY ATTORNEY
5Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
6
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
CITY MANAGER05000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-05000-4000 PAYROLL
101-05101-4001 REGULAR SALARIES 0.00 0.00 273,212.16 0.00 273,212.16 0.00
1,414.56 7/6/2023 payexp LD LD07/06/2
101Line Description: Wages
2,081.44 7/20/2023 payexp LD LD07/20/2
101Line Description: Wages
4,162.88 8/17/2023 payexp LD LD08/17/2
101Line Description: Wages
3,122.16 8/31/2023 payexp LD LD08/31/2
101Line Description: Wages
5,203.60 9/28/2023 payexp LD LD09/28/2
101Line Description: Wages
3,122.16 10/12/2023 payexp LD LD10/12/2
101Line Description: Wages
4,162.88 10/26/2023 payexp LD LD10/26/2
101Line Description: Wages
4,162.88 11/9/2023 payexp LD LD11/09/2
101Line Description: Wages
3,122.16 11/23/2023 payexp LD LD11/23/2
101Line Description: Wages
2,081.44 12/7/2023 payexp LD LD12/07/2
101Line Description: Wages
3,122.16 12/21/2023 payexp LD LD12/21/2
101Line Description: Wages
35,758.32 35,758.32 13.09101-05101-4001 REGULAR SALARIES 0.00 237,453.84 273,212.16
101-05101-4008 REGULAR HOLIDAY 0.00 0.00 0.00 0.00 0.00 0.00
404.16 7/6/2023 payexp LD LD07/06/2
101Line Description: Wages
1,040.72 9/14/2023 payexp LD LD09/14/2
101Line Description: Wages
6Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
7
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
CITY MANAGER05000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-05101-4008 REGULAR HOLIDAY (Continued)
1,040.72 10/12/2023 payexp LD LD10/12/2
101Line Description: Wages
2,081.44 11/23/2023 payexp LD LD11/23/2
101Line Description: Wages
1,040.72 12/7/2023 payexp LD LD12/07/2
101Line Description: Wages
5,607.76 5,607.76 0.00101-05101-4008 REGULAR HOLIDAY 0.00 -5,607.76 0.00
101-05101-4009 VACATION PAY 0.00 0.00 0.00 0.00 0.00 0.00
2,081.44 7/20/2023 payexp LD LD07/20/2
101Line Description: Wages
2,081.44 2,081.44 0.00101-05101-4009 VACATION PAY 0.00 -2,081.44 0.00
101-05101-4010 SICK PAY 0.00 0.00 0.00 0.00 0.00 0.00
1,040.72 8/31/2023 payexp LD LD08/31/2
101Line Description: Wages
1,040.72 12/7/2023 payexp LD LD12/07/2
101Line Description: Wages
1,040.72 12/21/2023 payexp LD LD12/21/2
101Line Description: Wages
3,122.16 3,122.16 0.00101-05101-4010 SICK PAY 0.00 -3,122.16 0.00
101-05101-4011 ACCRUED VACATION/SICK LEAVE 0.00 0.00 0.00 0.00 0.00 0.00
201.99 7/31/2023 genjrnl GJ 78771
101Line Description: Accrued Vacation/Sick Leave
201.99 8/31/2023 genjrnl GJ 78772
101Line Description: Accrued Vacation/Sick Leave
201.99 9/30/2023 genjrnl GJ 78773
101Line Description: Accrued Vacation/Sick Leave
201.99 10/31/2023 genjrnl GJ 78774
101Line Description: Accrued Vacation/Sick Leave
201.99 11/30/2023 genjrnl GJ 78775
101Line Description: Accrued Vacation/Sick Leave
7Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
8
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
CITY MANAGER05000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-05101-4011 ACCRUED VACATION/SICK LEAVE (Continued)
201.99 12/31/2023 genjrnl GJ 78864
101Line Description: Accrued Vacation/Sick Leave
1,211.94 1,211.94 0.00101-05101-4011 ACCRUED VACATION/SICK LEAVE 0.00 -1,211.94 0.00
101-05101-4016 ADMINISTRATIVE LEAVE 0.00 0.00 0.00 0.00 0.00 0.00
4,162.88 8/3/2023 payexp LD LD08/03/2
101Line Description: Wages
4,162.88 9/14/2023 payexp LD LD09/14/2
101Line Description: Wages
8,325.76 8,325.76 0.00101-05101-4016 ADMINISTRATIVE LEAVE 0.00 -8,325.76 0.00
101-05101-4308 CITY SPONSORED MEDICAL 0.00 0.00 0.00 0.00 0.00 0.00
315.41 7/6/2023 payexp LD LD07/06/2
101Line Description: Benefits/Contributions
700.90 7/20/2023 payexp LD LD07/20/2
101Line Description: Benefits/Contributions
700.91 8/3/2023 payexp LD LD08/03/2
101Line Description: Benefits/Contributions
700.90 8/17/2023 payexp LD LD08/17/2
101Line Description: Benefits/Contributions
700.90 8/31/2023 payexp LD LD08/31/2
101Line Description: Benefits/Contributions
876.14 9/14/2023 payexp LD LD09/14/2
101Line Description: Benefits/Contributions
876.14 9/28/2023 payexp LD LD09/28/2
101Line Description: Benefits/Contributions
700.90 10/12/2023 payexp LD LD10/12/2
101Line Description: Benefits/Contributions
700.90 10/26/2023 payexp LD LD10/26/2
101Line Description: Benefits/Contributions
8Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
9
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
CITY MANAGER05000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-05101-4308 CITY SPONSORED MEDICAL (Continued)
700.90 11/9/2023 payexp LD LD11/09/2
101Line Description: Benefits/Contributions
876.14 11/23/2023 payexp LD LD11/23/2
101Line Description: Benefits/Contributions
700.90 12/7/2023 payexp LD LD12/07/2
101Line Description: Benefits/Contributions
700.90 12/21/2023 payexp LD LD12/21/2
101Line Description: Benefits/Contributions
9,251.94 9,251.94 0.00101-05101-4308 CITY SPONSORED MEDICAL 0.00 -9,251.94 0.00
101-05101-4311 PERS-EMPLOYER 0.00 0.00 0.00 0.00 0.00 0.00
136.95 7/6/2023 payexp LD LD07/06/2
101Line Description: Benefits/Contributions
427.52 7/20/2023 payexp LD LD07/20/2
101Line Description: Benefits/Contributions
427.53 8/3/2023 payexp LD LD08/03/2
101Line Description: Benefits/Contributions
427.52 8/17/2023 payexp LD LD08/17/2
101Line Description: Benefits/Contributions
427.52 8/31/2023 payexp LD LD08/31/2
101Line Description: Benefits/Contributions
534.41 9/14/2023 payexp LD LD09/14/2
101Line Description: Benefits/Contributions
534.40 9/28/2023 payexp LD LD09/28/2
101Line Description: Benefits/Contributions
427.52 10/12/2023 payexp LD LD10/12/2
101Line Description: Benefits/Contributions
427.52 10/26/2023 payexp LD LD10/26/2
101Line Description: Benefits/Contributions
9Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
10
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
CITY MANAGER05000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-05101-4311 PERS-EMPLOYER (Continued)
427.52 11/9/2023 payexp LD LD11/09/2
101Line Description: Benefits/Contributions
534.40 11/23/2023 payexp LD LD11/23/2
101Line Description: Benefits/Contributions
427.52 12/7/2023 payexp LD LD12/07/2
101Line Description: Benefits/Contributions
427.52 12/21/2023 payexp LD LD12/21/2
101Line Description: Benefits/Contributions
5,587.85 5,587.85 0.00101-05101-4311 PERS-EMPLOYER 0.00 -5,587.85 0.00
101-05101-4315 AUTO ALLOWANCE 0.00 0.00 0.00 0.00 0.00 0.00
83.08 7/6/2023 payexp LD LD07/06/2
101Line Description: Benefits/Contributions
207.70 7/20/2023 payexp LD LD07/20/2
101Line Description: Benefits/Contributions
207.70 8/3/2023 payexp LD LD08/03/2
101Line Description: Benefits/Contributions
207.70 8/17/2023 payexp LD LD08/17/2
101Line Description: Benefits/Contributions
207.70 8/31/2023 payexp LD LD08/31/2
101Line Description: Benefits/Contributions
207.70 9/14/2023 payexp LD LD09/14/2
101Line Description: Benefits/Contributions
207.70 9/28/2023 payexp LD LD09/28/2
101Line Description: Benefits/Contributions
207.70 10/12/2023 payexp LD LD10/12/2
101Line Description: Benefits/Contributions
207.70 10/26/2023 payexp LD LD10/26/2
101Line Description: Benefits/Contributions
10Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
11
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
CITY MANAGER05000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-05101-4315 AUTO ALLOWANCE (Continued)
207.70 11/9/2023 payexp LD LD11/09/2
101Line Description: Benefits/Contributions
207.70 11/23/2023 payexp LD LD11/23/2
101Line Description: Benefits/Contributions
207.70 12/7/2023 payexp LD LD12/07/2
101Line Description: Benefits/Contributions
207.70 12/21/2023 payexp LD LD12/21/2
101Line Description: Benefits/Contributions
2,575.48 2,575.48 0.00101-05101-4315 AUTO ALLOWANCE 0.00 -2,575.48 0.00
101-05101-4326 WORKERS COMP INSURANCE 0.00 0.00 0.00 0.00 0.00 0.00
5.11 7/6/2023 payexp LD LD07/06/2
101Line Description: Benefits/Contributions
11.62 7/20/2023 payexp LD LD07/20/2
101Line Description: Benefits/Contributions
11.62 8/3/2023 payexp LD LD08/03/2
101Line Description: Benefits/Contributions
11.62 8/17/2023 payexp LD LD08/17/2
101Line Description: Benefits/Contributions
11.62 8/31/2023 payexp LD LD08/31/2
101Line Description: Benefits/Contributions
14.55 9/14/2023 payexp LD LD09/14/2
101Line Description: Benefits/Contributions
14.54 9/28/2023 payexp LD LD09/28/2
101Line Description: Benefits/Contributions
11.62 10/12/2023 payexp LD LD10/12/2
101Line Description: Benefits/Contributions
11.62 10/26/2023 payexp LD LD10/26/2
101Line Description: Benefits/Contributions
11Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
12
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
CITY MANAGER05000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-05101-4326 WORKERS COMP INSURANCE (Continued)
11.62 11/9/2023 payexp LD LD11/09/2
101Line Description: Benefits/Contributions
14.54 11/23/2023 payexp LD LD11/23/2
101Line Description: Benefits/Contributions
11.62 12/7/2023 payexp LD LD12/07/2
101Line Description: Benefits/Contributions
11.62 12/21/2023 payexp LD LD12/21/2
101Line Description: Benefits/Contributions
153.32 153.32 0.00101-05101-4326 WORKERS COMP INSURANCE 0.00 -153.32 0.00
101-05101-4329 RHS ER EXPENSE 0.00 0.00 0.00 0.00 0.00 0.00
27.28 7/6/2023 payexp LD LD07/06/2
101Line Description: Benefits/Contributions
62.45 7/20/2023 payexp LD LD07/20/2
101Line Description: Benefits/Contributions
62.44 8/3/2023 payexp LD LD08/03/2
101Line Description: Benefits/Contributions
62.45 8/17/2023 payexp LD LD08/17/2
101Line Description: Benefits/Contributions
62.45 8/31/2023 payexp LD LD08/31/2
101Line Description: Benefits/Contributions
78.05 9/14/2023 payexp LD LD09/14/2
101Line Description: Benefits/Contributions
78.05 9/28/2023 payexp LD LD09/28/2
101Line Description: Benefits/Contributions
62.45 10/12/2023 payexp LD LD10/12/2
101Line Description: Benefits/Contributions
62.45 10/26/2023 payexp LD LD10/26/2
101Line Description: Benefits/Contributions
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01/26/2024
CITY OF SOUTH SAN FRANCISCO
13
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
CITY MANAGER05000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-05101-4329 RHS ER EXPENSE (Continued)
62.45 11/9/2023 payexp LD LD11/09/2
101Line Description: Benefits/Contributions
78.05 11/23/2023 payexp LD LD11/23/2
101Line Description: Benefits/Contributions
62.45 12/7/2023 payexp LD LD12/07/2
101Line Description: Benefits/Contributions
62.45 12/21/2023 payexp LD LD12/21/2
101Line Description: Benefits/Contributions
823.47 823.47 0.00101-05101-4329 RHS ER EXPENSE 0.00 -823.47 0.00
101-05101-4338 OTHER BENEFITS - LIFE / ADD / LTD / STD 0.00 0.00 0.00 0.00 0.00 0.00
10.89 7/6/2023 payexp LD LD07/06/2
101Line Description: Benefits/Contributions
24.20 7/20/2023 payexp LD LD07/20/2
101Line Description: Benefits/Contributions
24.21 8/3/2023 payexp LD LD08/03/2
101Line Description: Benefits/Contributions
24.20 8/17/2023 payexp LD LD08/17/2
101Line Description: Benefits/Contributions
24.20 8/31/2023 payexp LD LD08/31/2
101Line Description: Benefits/Contributions
30.26 9/14/2023 payexp LD LD09/14/2
101Line Description: Benefits/Contributions
30.26 9/28/2023 payexp LD LD09/28/2
101Line Description: Benefits/Contributions
24.20 10/12/2023 payexp LD LD10/12/2
101Line Description: Benefits/Contributions
24.20 10/26/2023 payexp LD LD10/26/2
101Line Description: Benefits/Contributions
13Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
14
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
CITY MANAGER05000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-05101-4338 OTHER BENEFITS - LIFE / ADD / LTD / STD (Continued)
24.20 11/9/2023 payexp LD LD11/09/2
101Line Description: Benefits/Contributions
30.26 11/23/2023 payexp LD LD11/23/2
101Line Description: Benefits/Contributions
24.20 12/7/2023 payexp LD LD12/07/2
101Line Description: Benefits/Contributions
24.20 12/21/2023 payexp LD LD12/21/2
101Line Description: Benefits/Contributions
319.48 319.48 0.00101-05101-4338 OTHER BENEFITS - LIFE / ADD / LTD / STD 0.00 -319.48 0.00
101-05101-4340 FICA ER AND MEDICARE ER EXPENSE 0.00 0.00 0.00 0.00 0.00 0.00
140.29 7/6/2023 payexp LD LD07/06/2
101Line Description: Benefits/Contributions
333.65 7/20/2023 payexp LD LD07/20/2
101Line Description: Benefits/Contributions
99.87 8/3/2023 payexp LD LD08/03/2
101Line Description: Benefits/Contributions
61.15 8/17/2023 payexp LD LD08/17/2
101Line Description: Benefits/Contributions
63.04 8/31/2023 payexp LD LD08/31/2
101Line Description: Benefits/Contributions
75.71 9/14/2023 payexp LD LD09/14/2
101Line Description: Benefits/Contributions
78.34 9/28/2023 payexp LD LD09/28/2
101Line Description: Benefits/Contributions
61.15 10/12/2023 payexp LD LD10/12/2
101Line Description: Benefits/Contributions
63.25 10/26/2023 payexp LD LD10/26/2
101Line Description: Benefits/Contributions
14Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
15
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
CITY MANAGER05000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-05101-4340 FICA ER AND MEDICARE ER EXPENSE (Continued)
61.15 11/9/2023 payexp LD LD11/09/2
101Line Description: Benefits/Contributions
78.31 11/23/2023 payexp LD LD11/23/2
101Line Description: Benefits/Contributions
61.15 12/7/2023 payexp LD LD12/07/2
101Line Description: Benefits/Contributions
63.38 12/21/2023 payexp LD LD12/21/2
101Line Description: Benefits/Contributions
1,240.44 1,240.44 0.00101-05101-4340 FICA ER AND MEDICARE ER EXPENSE 0.00 -1,240.44 0.00
101-05101-4350 BUDGETED P/R BENEFITS 0.00 0.00 202,422.89 0.00 202,422.89 0.00
Total PAYROLL 15.99 76,059.36 0.00 399,575.69 76,059.36 475,635.05
101-05000-5000 SUPPLIES & SERVICES
Total SUPPLIES & SERVICES 0.00 0.00 0.00 0.00 0.00 0.00
15.99 76,059.36 76,059.36 0.00 399,575.69 475,635.05Total CITY MANAGER
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01/26/2024
CITY OF SOUTH SAN FRANCISCO
16
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
FINANCE DEPARTMENT06000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-06000-5000 SUPPLIES & SERVICES
0.00 0.00 0.00 0.00 0.00 0.00Total FINANCE DEPARTMENT
16Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
17
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
NON-DEPARTMENTAL07000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-07000-5000 SUPPLIES & SERVICES
0.00 0.00 0.00 0.00 0.00 0.00Total NON-DEPARTMENTAL
17Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
18
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
HUMAN RESOURCES09000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-09000-5000 SUPPLIES & SERVICES
0.00 0.00 0.00 0.00 0.00 0.00Total HUMAN RESOURCES
18Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
19
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
ECONOMIC & COMMUNITY DEVELOPMENT DEPT10000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-10000-5000 SUPPLIES & SERVICES
0.00 0.00 0.00 0.00 0.00 0.00Total ECONOMIC & COMMUNITY DEVELOPMENT DEPT
19Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
20
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
FIRE DEPARTMENT11000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-11000-5000 SUPPLIES & SERVICES
0.00 0.00 0.00 0.00 0.00 0.00Total FIRE DEPARTMENT
20Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
21
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
POLICE DEPARTMENT12000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-12000-5000 SUPPLIES & SERVICES
0.00 0.00 0.00 0.00 0.00 0.00Total POLICE DEPARTMENT
21Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
22
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
PUBLIC WORKS13000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-13000-5000 SUPPLIES & SERVICES
0.00 0.00 0.00 0.00 0.00 0.00Total PUBLIC WORKS
22Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
23
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
LIBRARY DEPARTMENT15000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-15000-5000 SUPPLIES & SERVICES
0.00 0.00 0.00 0.00 0.00 0.00Total LIBRARY DEPARTMENT
23Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
24
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
INFORMATION TECHNOLOGY DEPARTMENT16000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-16000-5000 SUPPLIES & SERVICES
0.00 0.00 0.00 0.00 0.00 0.00Total INFORMATION TECHNOLOGY DEPARTMENT
24Page:
01/26/2024
CITY OF SOUTH SAN FRANCISCO
25
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
PARKS & RECREATION DEPARTMENT17000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-17000-5000 SUPPLIES & SERVICES
0.00 0.00 0.00 0.00 0.00 0.00Total PARKS & RECREATION DEPARTMENT
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01/26/2024
CITY OF SOUTH SAN FRANCISCO
26
1:03PM
Page:expdetl.rpt Expenditure Detail Report
07/01/2023 through 12/31/2023
Periods: 0 through 6
MEASURE W101
CIP99000
Prct
Used
Balance
Year-to-date
Encumbrances
Year-to-date
Expenditures
Expenditures
Adjusted
Appropriation
Account Number
101-99000-9000 TRANSFERS
101-99999-9510 TRANSFER OUT TO CAPITAL IMPROV 0.00 0.00 0.00 0.00 0.00 0.00
513,695.94 7/1/2023 budadj BA st1903
101Line Description: Project Accounting AJ
572,535.20 7/1/2023 budadj BA st2104
101Line Description: Project Accounting AJ
6,205,343.71 7/1/2023 budadj BA pf1707
101Line Description: Project Accounting AJ
0.00 0.00 0.00101-99999-9510 TRANSFER OUT TO CAPITAL IMPROV 0.00 7,291,574.85 7,291,574.85
101-99999-9516 TRANSFER OUT TO FUND 516 CIVIC CAMPUS 0.00 0.00 0.00 0.00 0.00 0.00
5,905,783.09 7/1/2023 budadj BA pf2103
101Line Description: Project Accounting AJ
0.00 0.00 0.00101-99999-9516 TRANSFER OUT TO FUND 516 CIVIC CAMPUS 0.00 5,905,783.09 5,905,783.09
0.00 0.00 0.00 0.00 13,197,357.94 13,197,357.94Total CIP
11.66 2,559,434.36 2,559,434.36 0.00 19,400,308.63 21,959,742.99Total MEASURE W
Grand Total 2,559,434.36 2,559,434.36 11.66 0.00 19,400,308.63 21,959,742.99
26Page: