HomeMy WebLinkAboutReso 15-2025 (25-22)City of South San Francisco California
Annual Comprehensive Financial Report
Year Ended June 30, 2024
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024
Prepared by:
Department of Finance
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CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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
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CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
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 ............................................................................................................ 104
Schedule of Contributions – Miscellaneous Plan ........................................................................ 105
Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan ...................... 106
Schedule of Contributions – Safety Plan ..................................................................................... 107
Schedule of Changes in the Net OPEB Liability and Related Ratios ......................................... 108
Schedule of Contributions – Retiree Healthcare OPEB Plan ...................................................... 109
Notes to Schedule of Employer Contributions ............................................................................ 109
Supplementary Information:
General Fund:
Combining Balance Sheets ............................................................................................................. 114
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balances ..................................................................................................................... 115
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balance Budget and Actual - (Non GAAP Legal Basis) ........................................... 116
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CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
FINANCIAL SECTION (Continued)
Non-major Governmental Funds:
Combining Balance Sheet ............................................................................................................... 122
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances ..................................................................................................................... 128
Budgeted Non-major Government Funds:
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balances – Budget and Actual ................................................................................... 134
Internal Service Funds:
Combining Statement of Net Position ............................................................................................ 142
Combining Statement of Revenues, Expenses and Changes in Fund Net Position ....................... 143
Combining Statement of Cash Flows ............................................................................................. 144
Custodial Funds:
Combining Statement of Fiduciary Net Position ............................................................................ 146
Combining Statement of Changes in Fiduciary Net Position ......................................................... 147
STATISTICAL SECTION
Net Position by Component – Last Ten Fiscal Years .................................................................... 151
Changes in Net Position – Last Ten Fiscal Years .......................................................................... 152
Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................. 156
Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ................................ 158
Assessed Value of Taxable Property – Last Ten Fiscal Years ...................................................... 160
Direct and Overlapping Governments – Property Tax Rates
Last Ten Fiscal Years ................................................................................................................ 161
Principal Property Taxpayers – Current Year and Nine Years Ago .............................................. 162
Property Tax Levies and Collections – Last Ten Fiscal Years ...................................................... 163
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CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page
STATISTICAL SECTION (Continued)
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................ 164
Computation of Direct and Overlapping Debt ............................................................................... 165
Computation of Legal Bonded Debt Margin ................................................................................. 166
Revenue Bond Coverage Sewer Rental Enterprise Fund – Last Ten Fiscal Years ....................... 167
Sewer Debt Service Coverage Sewer Rental Enterprise Fund – Last Nine Fiscal Years .............. 168
Redevelopment Pledged Revenue Coverage – Last Ten Fiscal Years .......................................... 169
Demographic and Economic Statistics – Last Ten Calendar Years .............................................. 170
Principal Employers – Current Year and Nine Years Ago ............................................................ 171
Full-Time Equivalent City Governmental Employees by Function – Last Ten Fiscal Years ....... 172
Operating Indicators by Function/Program – Last Ten Fiscal Years ............................................ 173
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ......................................... 174
Miscellaneous Information – Last Six Fiscal Years ...................................................................... 175
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December 19, 2024
To the Honorable Mayor, Members of the City Council, and residents of South San
Francisco:
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, 2024. The City of
South San Francisco is required to publish annually 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, 2024.
The financial statements in this report represent the finances of the City of South San
Francisco. Management assumes full responsibility for the completeness and fairness of
the information contained within the report, and to the best of our knowledge, the enclosed
data is accurate in all material respects. It is reported in a manner that fairly presents the
financial position and results of operations of the various funds of the City. All disclosures
necessary to enable the reader to gain a comprehensive understanding of the City’s
financial activities have been included.
To provide a reasonable basis for these representations, management has established an
internal control framework designed to protect the City’s assets from loss, theft, or misuse,
and to compile sufficient reliable information for the preparation of the City’s financial
statements in conformity with GAAP. Because the cost of internal controls should not
outweigh their benefits, the City's framework of internal controls has been designed to
provide reasonable, rather than absolute, assurance that the financial statements are free
from material misstatement.
CITY COUNCIL 2024
JAMES COLEMAN, MAYOR (DIST. 4)
EDDIE FLORES, VICE MAYOR (DIST. 5)
FLOR NICOLAS, MEMBER (DIST. 3)
MARK NAGALES, MEMBER (DIST. 2)
MARK ADDIEGO, MEMBER (DIST. 1)
SHARON RANALS, CITY MANAGER
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The City contracted with Maze & Associates (Maze), a licensed certified public accounting
firm, to conduct the annual audit. Maze concluded that the financial statements present
fairly, in all material respects, the financial position of the governmental activities,
business-type activities, each major fund, and the aggregate remaining fund information of
the City as of June 30, 2024, in conformity with GAAP. This favorable conclusion is
commonly referred to as an unmodified opinion.
In addition to the financial statement audit, the City participates in the federally mandated
"Single Audit" to meet the needs of federal grantor agencies. This audit requires that the
independent auditor report not only on the fair presentation of the financial statements, but
also on the City's internal controls and compliance with legal requirements related to the
administration of federal awards. The Single Audit report will be issued by March 2025.
The provisions of Governmental Accounting Standards Board (GASB) Statement 34,
“basic Financial Statements-and Management’s Discussion & Analysis-for State and Local
Governments” requires that management provide a narrative introduction, overview, and
analysis to accompany the basic financial statement in the form of the Management’s
Discussion & Analysis (MD&A). This letter of transmittal is designed to complement the
MD&A and should be read in conjunction with it. The MD&A is located immediately
following the report of the independent auditor in the financial section.
CITY PROFILE
The City of South San Francisco is a California general law City incorporated in 1908 and
operates under the Council-Manager form of government. The City shifted from at-large
to district elections in November 2018 for the City Council. A five-member City Council
is elected to four-year terms, with a rotating Mayor chosen by the majority vote of the
Council, for a term of one year. The Council appoints the City Manager and City Attorney.
The City Manager is responsible for carrying out the policies and ordinances of the City
Council, for overseeing the day-to-day operations of the City, and appointing department
directors. The offices of City Clerk and City Treasurer are elected and will remain at-large.
The City encompasses approximately 9.5 square miles and has a population of 64,601. 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.
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
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made South San Francisco the Birthplace of Biotech, hosting more than 250 companies in
the biotech cluster.
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
In FY 2023-24, the City experienced strong revenue growth, primarily due to higher
property tax receipts, sales taxes, and interest income. However, the City continues to face
challenges, due to negotiated increases to employee compensation, increases to health care
costs, and pension costs increases. The high inflation environment also has led to
significant increase in supplies and services cost. As a result, the City is anticipating future
expenditures will outpace revenues. The City has maintained a very healthy reserves that
allows it to weather some of these challenges. The City implemented a 5% budget reduction
in its General Fund across all departments to mitigate the anticipated shortfall in FY 2024-
25. The City placed a Business License Tax Measure on the November 2024 ballot, which
was approved by over 80% of voters, and is projected to bring in an additional of $2.6
million annually to General Fund.
Unemployment rates increased slightly during the year, from 3.1% in July 2023 to 3.9% in
June 2024. This is slightly higher than the County of San Mateo’s unemployment rate of
3.5% but significantly better than the State’s unemployment rate of 5.3% as of June 2024.
The good news is that during Fiscal Year 2023-24 the City continued to see signs of
recovery from the economic challenges associated with the global COVID-19 pandemic.
Despite immediate and longer-term challenges, the City remains well-positioned for
economic growth thanks to its key industries, strategic location, and robust infrastructure
plans. The City is known as the “Birthplace of Biotechnology,” with over 250 companies
in the biotech cluster—including Genentech—making it one of the most significant biotech
hubs globally. The biotech sector continues to thrive, supported by the city’s proximity to
leading universities and venture capital networks that foster innovation and attract talent.
Tourism also holds growth potential. This sector is poised to benefit from the City’s easy
access to major transportation routes and San Francisco International Airport, further
drawing visitors to South San Francisco and contributing to economic diversification.
Our Planning Division has also been hard at work in approving new permits for new or
expanded businesses, including commercial recreation and clean technology businesses.
3.5 million square feet of biotech space is currently under construction. Last year, our City
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was recognized by the Governor’s office for being a leader in tackling our state’s affordable
housing crisis. Many exciting affordable homes for seniors and families are in the pipeline.
With these fundamentals in place, South San Francisco is on track to leverage both local
and regional economic opportunities for continued prosperity.
MAJOR CITY SPONSORED INITIATIVES
The City is committed to providing 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 2023-24 are included as follows:
Strategic Plans
x Adopted the Lindenville Specific Plan September 2023. This plan would be the
guiding document to help realize Shape SSF 2040’s vision for the Lindenville sub-
area as a mixed-use neighborhood, employment hub, and cultural center of South
San Francisco.
x Launched the Age-Friendly Community Action Plan in collaboration with AARP
and the Center for Age-Friendly Excellence to ensure that our seniors are well
supported.
City Services
x Inaugurated the Library | Parks & Recreation Center in October 2023. This state-
of-the-art facility allows our Library and Parks and Recreation departments to
significantly expand our services to host more programs for seniors and children. It
also provides various educational workshops and health classes for our residents.
x Expanded childcare programs in partnership with the South San Francisco Unified
School District as part of the Expanded Learning Opportunities Program to provide
additional 120 before and after school spaces at no cost to low-income families.
x Expanded Every Kid Deserves a Bike program to serve students from Buri Buri,
Monte Verde, and Ponderosa Elementary schools. Since the inception of the
program three years ago, the City has distributed about 860 bicycles with helmets
and education on how to ride a bike and ride in safety.
x Created a new shuttle line connecting Westborough to Avalon, Buri Buri, Serra
Highlands and BART.
x Expanded the free Shuttle Service’s Orange Line to Colma’s Veterans Village to
provide our military veterans with free and convenient transportation and access to
medical facilities, shopping, and other essential city services.
x Extended a two-year pilot program with a mental health clinician available for
incidents involving behavioral health crises.
x Added 12 additional Automated License Plate Reader cameras.
x Saw an overall reduction in both property and violent crimes.
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Major Capital Projects Completed
x New Library | Parks and Recreation Center, an 80,000 square foot state of the art
facility located at Civic Campus Way
x Orange Memorial Park Sports Field
x Oyster Point park and dog park
x Centennial Way Park South project with a skate park and bike pump track.
x Westborough walk path update
x Completed approximately 19 miles of surface seal treatment comprised of 57
local streets and six city parking lots.
FINANCIAL INFORMATION
The City Council adopts the annual budget by June 30, following a public hearing process.
This budget serves as the cornerstone of the City’s financial planning and control
framework, organized by fund, function, and department. Budgetary control is legally
maintained at the fund level, with the City Manager authorized to transfer amounts within
any fund, including between departments and line items. Any adjustments that increase a
fund’s total expenditures, or transfers between funds, require City Council approval.
Unspent, encumbered appropriations are carried forward into the following fiscal year,
while unencumbered appropriations lapse unless otherwise authorized by the City Council
and City Manager.
The City’s internal accounting controls are designed: (1) to safeguard assets, (2) ensure the
reliability of financial records for accurate financial reporting, and (3) verify that
transactions are executed per management’s authorization. These controls provide
reasonable assurance but are not absolute due to cost-benefit considerations that
management regularly evaluates. Key internal control practices include segregation of
accounting duties, transaction approvals, and regular reconciliation of records.
All internal control evaluations occur within this framework. We believe that the City’s
internal accounting controls adequately safeguard assets and provide reasonable assurances
of proper recording of financial transactions.
The City continues to earn a triple-A credit rating, reflecting its strong financial position,
sound management, prudent policies, and effective budgetary performance. Furthermore,
the City’s Reserve Policy aligns with Government Finance Officers Association (GFOA)
best practices, maintaining reserves at 15-20 percent of operating revenues to provide
financial stability and flexibility.
L[
OTHER INFORMATION
Award
The City’s ACFR for the fiscal year ended June 30, 2023, 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. Each member of the department has our sincere
appreciation for the contributions to furthering the fiscal year-end audit while maintaining
excellent levels of financial services and accountability. Special thanks go to the City’s
acting Accounting Supervisor, Steven Lew, who oversaw the compilation and review of
the financial statements, our Accountant II, Akshay Joshi, Financial Services Manager,
Jennifer Clemente, who are also major contributors to this effort. The audit firm, Maze &
Associates, has also been very helpful in meeting the City’s audit and financial reporting
requirements.
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,
____________________________ __________________________
Sharon Ranals Karen Chang
City Manager Director of Finance
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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, 2023
Executive Director/CEO
xi
xii
City Council & Directory of Officials*
City Council
James Coleman (District 4) Mayor
Eddie Flores (District 5) Vice Mayor
Mark Addiego (District 1) Councilmember
Mark Nagales (District 2) Councilmember
Buenaflor Nicolas (District 3)) 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 Economic & Community Development Director
Leah Lockhart Human Resources Director
MaƩhew Samson Fire Chief
Eunejune Kim Public Works Director
Valerie Sommer Library Director
Greg MediaƟ Parks & RecreaƟon Director
Budget SubcommiƩee
Mark Addiego
James Coleman
*As of December 6, 2024
[LLL
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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, 2024, 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 0.60%, 0.72%, and 1.89%, 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, 2024, 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.
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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 opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and
therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it exists.
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on
the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
•Exercise professional judgment and maintain professional skepticism throughout the audit.
•Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements.
•Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the 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.
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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.
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Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 19,
2024, 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 19, 2024
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
The purpose of the Management’s Discussion and Analysis (MD&A) is to provide a narrative
overview and analysis of City of South San Francisco’s financial activities for the year ended June
30, 2024. We encourage readers to consider the information presented here in conjunction with
the additional information that we have furnished with the Transmittal Letter and Basic Financial
Statements.
FINANCIAL HIGHLIGHTS
•Total Net Position for Governmental activities in FY 2023-24 increased by $59.3 million, or
13.7%, from $434.3 million in the prior year, to $493.6 million. The reduction in other assets
was due to drawing down from bond proceeds to fund capital projects, such as Orange
Memorial Parks and Civic Campus. The growth in assets of $52.8 million is primarily due to
street, library, and parks projects of approximately $31.8 million, as well as increased cash
received from impact fees of $18.8 million. Additionally, while the net pension liability grew
by approximately $10 million, this was offset by a decrease of $11.2 million in the OPEB
liability, which further augmented the increase in net position during the fiscal year.
•Total Net Position for Business-Type activities in FY 2023-24 increased by $4.1 million, or
2.9%, from $142.9 million in the prior year, to $147 million. The growth in Net Position was
a result of increased contributions from partner cities relating to sewer services as well as
repayments on cost-sharing for improvements.
•Revenues from Governmental Activities (excluding transfers and special items) increased by
$22.9 million, or 10.6%, to $239.3 million in FY 2023-24 from $216.4 million in the prior
year.
•Total program revenues from the City’s Enterprise Funds increased by $3.3 million, or 9.5%
to $39.3 million from $35.9 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
returning to work. The City’s Parking Enterprise revenues remained flat at around $1 million.
The Storm Water Enterprise Fund experienced a slight increase of $0.2 million in capital grants
and contributions in FY 2023-24.
•Expenses from Governmental Activities (excluding transfers and special items) increased by
$7.5 million, or 4.4%, to $179.1 million in FY2023-24 from $171.6 million in the prior year
due to an $11.5 million increase in the amount of capital expenditures during the period relating
primarily to library, parks, and public works improvements. This was partially offset by
decreases in general government expenses as general fund projects were completed or neared
completion. Expenses from Business-Type Activities increased by $3.9 million, or 11.7%, to
$37.3 million compared to $33.4 million in the prior year.
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
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.
6
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
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.
The City’s Business-Type Activities also include the Parking Authority of the City of South
San Francisco, as the City Council also governs this entity.
•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.
7
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
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 2023-24 are presented versus FY 2022-23.
8
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
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, 2024 for Governmental Activities:
Governmental Net Position
Table 1
Governmental Net Position as of June 30
(In Millions)
Increase / (Decrease)
2024 2023 Amount %
Cash and investments 310.7$ 285.8$ 24.9$ 8.7%
Other assets 108.1 117.0 (8.9) (7.6%)
Capital assets 569.4 532.7 36.7 6.9%
Total assets 988.2 935.5 52.7 5.6%
Total outflows of resources 64.0 64.6 (0.6) (0.9%)
Total outflow of resources 64.0 64.6 (0.6) (0.9%)
Long-term debt outstanding 211.5 219.0 (7.5) (3.4%)
Other liabilities 321.6 331.4 (9.8) (3.0%)
Total liabilities 533.1 550.4 (17.3) (3.1%)
Deferred inflows of resources 25.6 15.4 10.2 66.2%
Total deferred inflow of resources 25.6 15.4 10.2 66.2%
Net position:
Net investment in capital assets 413.1 390.8 22.3 5.7%
Restricted 159.7 130.1 29.6 22.8%
Unrestricted (79.2) (86.6) 7.4 (8.5%)
Total net position 493.6$ 434.3$ 59.3$ 13.7%
9
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
As shown in table 1, the total net position for Governmental Activities increased by $59.3 million
in FY 2023-24 compared to the prior year, reflecting significant increases in assets. Cash and
investments increased by $24.9 million. Other assets, which includes receivables, properties held
for redevelopment, and restricted cash and investments, decreased by $8.9 million due to reduction
of the restricted cash, which represented the use of bond proceeds for capital assets such as the
Civic Campus and Orange Memorial Park that were completed in October 2023 during the present
fiscal year. Capital assets increased by $36.7 million primarily due to the capitalization of $16.8
million in bond-funded library and parks-related project activity as well as other bond funded street
and trail improvement projects of $13.9 million.
Pursuant to GASB 75 and GASB 68 requirements, respectively, the City, as in prior years,
recognized the Net OPEB liability of $48.3 million and Net Pension Liability of $216.5 million
attributable to Governmental Activities.
10
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
The following table shows the changes in net position for Governmental Activities:
Table 2
Expense and Program Revenue Comparison in Governmental Activities
(In Millions)
Increase / (Decrease)
2024 2023 Amount %
Revenues
Program revenues:
Charges for services 57.1$ 53.4$ 3.7$ 6.9%
Operating grants and contributions 19.1 12.9 6.2 48.1%
Capital grants and contributions 9.2 2.0 7.2 360.0%
Total program revenues 85.4$ 68.3$ 17.1$ 25.0%
General revenues:
Taxes:
Property taxes 52.2$ 47.7$ 4.5$ 9.4%
Sales taxes 39.5 37.7 1.8 4.8%
Transient occupancy taxes 14.9 16.3 (1.4) (8.6%)
Other taxes 12.4 13.4 (1.0) (7.5%)
Property taxes in lieu 6.6 8.8 (2.2) (25.0%)
Investment earnings 15.0 5.1 9.9 194.1%
Miscellaneous 13.2 19.1 (5.9) (30.9%)
Total general revenues 153.9$ 148.1$ 5.8$ 3.9%
Total revenues 239.3$ 216.4$ 22.9$ 10.6%
Expenses
General government 16.8$ 25.0$ (8.2)$ (32.8%)
Fire department 39.6 36.9 2.7 7.3%
Police department 40.4 37.9 2.5 6.6%
Public Works 28.8 21.9 6.9 31.5%
Parks and Recreation 26.6 23.5 3.1 13.2%
Library 8.0 6.6 1.4 21.2%
Economic and Community Development 12.1 12.9 (0.8) (6.2%)
Interest on long-term debt 6.8 6.9 (0.1) (1.4%)
Total expenses 179.1$ 171.6$ 7.5$ 4.4%
Excess / (deficiency) before transfers 60.2$ 44.8$ 15.4$ 34.4%
Special Item 0.0 (5.2) 5.2 (100.0%)
Transfers (0.9) (2.1) 1.2 (57.1%)
Change in net position 59.3 37.5 21.8 58.1%
Net position - beginning 434.3 396.8 37.5 9.5%
Net position - ending 493.6$ 434.3$ 59.3$ 13.7%
11
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
As shown in table 2, total Governmental revenues (excluding transfers and special items) increased
by $22.9 million, or 10.6%, compared to the prior year. The increase was primarily due to higher
investment earnings as well as increases in both operating and capital grants and contributions.
The increase in capital grants primarily related to state and local grants for ongoing public works
and infrastructure improvement projects. The increase in operating grants was mainly due to
increased amounts claimed and recognized by the city under the American Rescue Plan Act.
However, these increases were offset slightly by a decrease in miscellaneous revenues collected
during this fiscal year. These are amounts received from the state as part of the settlements and
obligations related to the Successor Agency, and can vary depending on the timing and activities
of associated 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
ongoing recovery from the COVID-19 pandemic. There was also an increase in the property tax
primarily due to a continued strong real estate market and the City received a higher residual tax
allocation from the Successor Agency. However, a decrease in revenue was also seen in Property
Taxes in Lieu ($2.2 million), otherwise known as the California Vehicle Licensing Fee (VLF) due
to the continuing impact of 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 $9.9 million
to $15.0 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.
12
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
Chart 1 shows the distribution of revenues from Governmental Activities by category.
Chart 1
Revenues by Source - Governmental Activities FY 2023-24
Governmental program expenses increased by $7.5 million, or 4.4%, in comparison to the prior
year. Public works expenses increased by $6.9 million due to multiple ongoing infrastructure
improvements and beautification projects that are currently underway. The remaining increase is
mainly due to higher salary and benefit costs, due to regular annual raises and cost-of-living
increases, as well as increasing headcount relating to library, parks, and recreation facilities.
13
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
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 2023-24, the net expense for governmental activities decreased by $9.6 million from $103.3
million to $93.7 million, due to a $17 million increase in program revenues primarily in grants and
contributions, offset by a $7.5 million increase in Governmental program expenses, as previously
discussed.
Increase / (Decrease)
2024 2023 Amount %
General government (0.3)$ (12.9)$ 12.6$ (97.7%)
Fire department (30.2) (27.6) (2.6) 9.4%
Police department (37.4) (34.7) (2.7) 7.8%
Public works department 6.9 (3.1) 10.0 (322.6%)
Recreation and community services (21.9) (19.1) (2.8) 14.7%
Library (7.2) (5.7) (1.5) 26.3%
Economic and community development 3.2 6.7 (3.5) (52.2%)
Interest on long-term debt (6.8) (6.9) 0.1 (1.4%)
Total (93.7)$ (103.3)$ 9.6$ (9.3%)
14
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
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, 2024 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 $4.1 million, or 2.9%, compared
to the prior year. Total assets increased slightly by $0.6 million, or 0.3%, reflecting decreases of
capital assets related primarily to regular depreciation. This was offset somewhat by higher cash
balances due to higher contributions from partner cities and an additional payment made by San
Bruno related to a loan. Total liabilities decreased by $4.4 million due to a lower notes payable
balance at year end and a $0.8 million lower net OPEB liability due to investment gains and regular
attrition during the measurement period.
Increase / (Decrease)
2024 2023 Amount %
Cash and Investments 38.9$ 32.3$ 6.6$ 20.4%
Other assets 2.1 3.2 (1.1) (34.4%)
Capital assets 187.9 192.8 (4.9) (2.5%)
Total assets 228.9 228.3 0.6 0.3%
Deferred outflows related to pension/OPEB 7.1 7.1 0.0 0.0%
Total Deferred outflows of resources 7.1 7.1 0.0 0.0%
Long-term liabilities outstanding 51.3 55.7 (4.4) (7.9%)
Other liabilities 36.7 36.7 0.0 0.0%
Total liabilities 88.0 92.4 (4.4) (4.8%)
Deferred inflows related to pension/OPEB 1.0 0.2 0.8 400.0%
Total deferred inflows of resources 1.0 0.2 0.8 400.0%
Net position:
Net investment in capital assets 132.1 132.8 (0.7) (0.5%)
Restricted 0.0 0.0 0.0 0.0%
Unrestricted 14.9 10.1 4.8 100.0%
Total net position 147.0$ 142.9$ 4.1$ 2.9%
15
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
Similar to Governmental Activities and pursuant to GASB 75 and GASB 68 requirements,
respectively, the City, as in prior years, recognized the Net OPEB liability of $5.3 million and Net
Pension Liability of $24 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 FY2023-24 increased by $3.9 million to $37.3 million
while total revenues (program and general revenues combined) increased slightly, by $3.3 million
to $39.2 million. The total change in net position of $4.1 million was a decrease of $0.9 million
after transfers compared to the $5 million increase in net position in the prior year. This was largely
due to the recovery of sewer services charge revenues resulting from the reopening of businesses
and more workers returning to work.
Increase / (Decrease)
2024 2023 Amount %
Expenses
Sewer Enterprise 32.0$ 30.6$ 1.4$ 4.6%
Parking District 1.2 1.3 (0.1) (7.7%)
Storm Water 4.1 1.5 2.6 173.3%
Total expenses 37.3 33.4 3.9 11.7%
Revenues
Program Revenues
Charges for Services 27.4 25.4 2.0 7.9%
Operating and Capital grants and contributions 11.8 10.5 1.3 12.4%
Total program revenues 39.2 35.9 3.3 9.2%
General revenues
Investment earnings 1.3 0.3 1.0 333.3%
Total general revenues 1.3 0.3 1.0 333.3%
Excess (deficiency) before transfers 3.2 2.8 0.4 14.3%
Transfers 0.9 2.2 (1.3) (59.1%)
Change in net position 4.1 5.0 (0.9) (18.0%)
Net position - beginning 142.9 137.9 5.0 3.6%
Net position - ending 147.0$ 142.9$ 4.1$ 2.9%
16
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
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, 2024, the City’s Governmental Funds reported combined fund balances of $328.3
million, an increase of $16.3 million, or 5.2%, compared to the prior year. This was primarily due
to near completion of the bond funded capital improvement projects such as Civic Campus, the
Police Station, and various Street Projects. The General Fund ending fund balance, which includes
Measure W, was $106.3 million, reflecting an increase of $17.7 million, or 20.0%, over the prior
year primarily due to stronger revenues in most major revenue categories and also from the
replenishment of revenue loss from American Rescue Plan Act.
Total Governmental Fund revenues (excluding transfers and special items) increased by $17.5
million, or 8.2%, from $214.7 million to $232.2 million, with increases primarily from interest
income. sales tax, property taxes, and charges for city services. The City saw a steady increase of
property taxes due to a strong real estate market, and investment earnings rose due to sustained
high interest rates and general economic growth.
Total Governmental Fund expenditures (excluding transfers and special items) decreased by $18.5
million, or 7.9%, from $233.3 million in the prior year to $214.7 million in FY 2023-24. This was
mainly due to significant reductions in capital expenditures as certain significant project neared
completion. These reductions were also offset by other departments seeing increases in
expenditures as personnel costs remained high as a result of annual salary adjustment and an
increase in headcounts. Additionally, higher costs of materials and supplies due to high inflation
also resulted in increased expenditures.
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:
17
Table 6
Comparison of General Fund (excluding transfers) Final Budgets to Original Adopted
Budget (in Thousands)
Original Final Pct Discussion:
Revenues Budget Budget Change Change (Items of more than 5% and $100,000 variance)
Property taxes 47,980$ 49,280$ 1,300$ 2.7%
Sales taxes 39,351 37,951 (1,400) -3.6%
Transient occupancy taxes 14,910 14,000 (910) -6.1%
Reflects taxes on hotel stays and other short term
accommodations, and was revised downwards due to an
expected slower rebound in business travel.
Other taxes 6,950 6,651 (299) -4.3%
Other taxes includes real property transfer tax, business license
and commercial parking tax. In the prior year there was a
midyear budget revision up, however revenue streams from new
business startups and traffic to returned to FY2021-22 levels
leading to a revision downward.
Franchise Fee 4,600 4,600 -
Intergovernmental 3,140 7,765 4,625 147.3%
Reflects multiple federal, state and local grants applied for during
the year, adjustments for Transit Authority grants and the
Metropolitan Transportation Commission grants for street
projects as well as a C/CAG grant for shuttle services as well as
various other projects.
Interest and rentals 3,940 4,450 510 12.9%
This was revised upwards during the year due to sustained high
interest rates that led to better investment performance and
higher income.
Licenses and permits 16,963 12,463 (4,500) -26.5%
A decrease in projections for Building division had led to a
decision to revise the budget downwards during the mid-year
review
Charges for services 9,709 11,569 1,860 19.2%A increase in projections for Planning division had led to a
decision to revise the budget upwards during the mid-year review
Fines and forfeitures 700 700 -
Other 338 338 -
Total 148,581$ 149,767$ 1,186$ 0.8%
Original Final Pct Discussion:
Expenditures Budget Budget Change Change (Items of more than 5% and $100,000 variance)
City Council 269$ 269$ -$
City Clerk 1,265 1,124 (141) -11.1%Overall year end budget realignment between General Fund
departments to ensure proper payroll budget allocations.
City Treasurer 133 133 -
City Attorney 1,109 1,109 -
City Manager 5,407 4,956 (451) -8.3%Overall year end budget realignment between General Fund
departments to ensure proper payroll budget allocations.
Finance 3,992 3,901 (91) -2.3%
Non-Departmental 1,394 1,394 -
Human Resources 2,885 2,849 (36) -1.2%
Economic and Community
Development 8,500 15,074 6,574 77.3%Roll over of purchase orders from the previous year for plan
review and building inspection services.
Fire 32,762 36,751 3,989 12.2%Overall year end budget realignment between General Fund
departments to ensure proper payroll budget allocations.
Police 36,838 37,355 517 1.4%
Public Works 11,954 14,239 2,285 19.1%
A roll over of purchase orders from the prior year, an increase in
expenditures due to grant funding off the Free Shuttle program &
a overall year end budget realignment between General Fund
departments to ensure proper payroll budget allocations.
Library 8,045 8,014 (31) -0.4%
Parks and Recreation 24,675 25,769 1,094 4.4%
Capital Outlays - 79 79 100.0%
Total 139,228$ 153,016$ 13,788$ 9.9%
18
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
Analysis of Major Governmental Funds
General Fund
In FY 2023-24, total General Fund revenues, excluding transfers in, were $164.0 million which
was $14.3 million, or 9.5% higher than the final amended budget. Total General Fund
expenditures, excluding transfers out and including encumbrances, ended FY 2023-24 at $139.7
million which was $13.3 million, or 8.6%, lower than the final budget due to carryover of a
significant number of purchase orders.
As of June 30, 2024, the General Fund total fund balance was $106.3 million, $20.7 million of
which was attributable to Measure W. Of the remaining fund balance, $29.67 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 $56.0 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 2023-24 were $56.4 million, which was $7.1 million or
14.3% over final budget, primarily due to the continued strong real estate market and also from
receipt of a higher residual tax allocation from the Successor Agency.
Sales tax revenue, including Measure W, was $39.0 million, which was $1.1 million or 2.7% over
final budget, reflecting sustained consumer spending due to economic growth coupled with
ongoing inflation.
Transient occupancy taxes totaled $14.9 million for the year, which was $0.9 million, or 6.5%,
over the final budget. This category was budgeted conservatively due to the expected lingering
impacts of slower recovery in business travel in the hospitality industry as was seen in the prior
year. However, travel continued its rebound leading to higher 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 $6.5 million which was $1.3 million, or 16.3%, lower than final
budget mainly due to the timing of receipt of various grants, many of which are on a reimbursement
basis so that these revenues depend on progress of projects during the year.
Licenses and permits revenues were $14.0 million, which was $1.5 million, or 12.1% 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, which have increased in the current year relative to prior
year.
19
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
Charges for services were $13.0 million, which was $1.4 million or 12.1% above budget. This
category was revised upward during the mid-year review due to higher-than-expected receipts at
the time for classes, rentals and child care. The year ended stronger than expected and ultimately
exceeded the original budget.
Measure W revenue increased slightly from $15.6 million in FY2022-23 to $15.8 million in FY
2023-24 and exceeded budget by $0.2 million primarily due to the City’s prudent budget approach
to this volatile revenue category, which ultimately ended up closely matching actual revenue.
Expenditures. Compared to the prior year, General Fund expenditures, excluding transfers and
including encumbrances, increased from $142.6 million to $147.5 million. This was driven by
increased spending on ongoing capital projects specifically relating to public works and library,
parks, and recreation facilities. The city is currently engaged in street and traffic improvement
projects as well as upgrades and construction relating to parks & recreation as well as library
facilities, which has driven the bulk of the increase. This was also offset by reduced expenditures
in other functions, due mainly to lower retiree health and workers’ compensation benefits as well
as lower IT and professional services costs allocation. Overall, due to lesser actual expenditures
incurred on the capital projects than initially budgeted, as well as the reduced general government
costs, the General Fund ended the year with a $5.5 million favorable variance versus the final
budget.
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 ($24 million) and 3) Bond funded Solar Projects ($2 million). The decrease in fund
balance for this fund was mainly due to draw down from bond proceeds to fund the streets projects.
The reduction in fund balance of $5 million for the Capital Improvement for Orange Memorial
Park also resulted from drawdowns from the bond proceeds for the projects.
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 2023-24, combined ending
fund balance for Capital Improvement Funds was $70.5 million which decreased $16.1 million
from the combined ending fund balance of $186.6 million in the prior year. As mentioned above,
the decrease was due to the spending down of previous bond proceeds. The Civic Center Campus
and the Capital Improvement Orange Memorial Park Projects were completed in the fall of 2023.
20
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
Capital Infrastructure Reserve Fund fund balance was reduced by $1.9 million to $19.4 million
due to expenditures for maintenance and repairs at city facilities and also street projects and
Caltrain station enhancements.
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 continuing high level of development activity in
the City. This includes $6.6 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
$10 million in city-wide traffic impact fees used for various street and traffic improvement
projects.
Enterprise Funds
Sewer Enterprise Fund
The Sewer Enterprise fund reported operating revenue (before non-operating revenues and
operating transfers) of $34.6 million in FY2023-24, an increase of $4.5 million, or 15.0%, from
$30.1 million in the prior year. This increase in revenue is due to increased 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 $3 million, or 8.0%, from $27.9 million to $30.9
million, due to higher payroll-related expenses.
Parking District Fund
In FY 2023-24, 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 and expenses remained flat, with insignificant changes from prior
year, as parking meter and garage usage remained consistent.
21
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
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 $2.7 million - $0.3 million from the General Fund, $0.7 million from non-Major
Governmental Funds, and $1.7 million from the Sewer Enterprise Fund. Operating expenses in
this fund totaled $4.1 million, an increase of $2.6 million, or 173.3%, from $1.3 million in the
prior year, primarily due to higher payroll-related expenditures as well as for the new storm water
master plan.
CAPITAL ASSETS
Generally accepted accounting principles require the City to add infrastructure to its reportable
capital assets. Infrastructure includes streets, drainage systems, and traffic control and safety
devices. The City has successfully reported on the depreciated value of all such assets acquired or
built since 1980. The City reports the depreciated book value of other types of capital assets such
as buildings, land, equipment and furniture, on the City-wide Statement of Net Position. Such
information is summarized below and is more completely detailed in Note 3 to the Basic Financial
Statements. The City depreciates all of its capital assets, except land and construction in progress.
At June 30, 2024, the City had $757.3 million in capital assets (as shown in table 7 below), net of
depreciation, representing an increase of $31.8 million from the prior year, driven primarily by
construction projects such as the completion of new WQCP digesters and the Civic Center
Campus.
22
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
The City’s various capital asset types used in Governmental and Business-Type Activities, are
illustrated in Table 7:
Table 7
Capital Assets (in Millions) at June 30
Increase / (Decrease)
2024 2023 Amount %
Governmental Activities:
Land 77.7$ 72.2$ 5.5$ 7.6%
Buildings and improvements 153.6 150.6 3.0 2.0%
Equipment and vehicles 27.2 25.9 1.3 5.0%
Furniture and fixtures 2.6 2.6 0.0 0.0%
Infrastructure - streets 212.8 208.3 4.5 2.2%
Infrastructure - traffic control devices 17.6 12.6 5.0 39.7%
Infrastructure - storm drains 8.9 8.9 0.0 0.0%
Construction in progress 289.1 260.9 28.2 10.8%
Less accumulated depreciation (220.1) (209.3) (10.8) 5.2%
Totals 569.4$ 532.7$ 36.7$ 6.9%
Business-Type Activities
Land 0.8$ 0.8$ -$ 0.0%
Buildings and improvements 152.2 80.1 72.1 90.0%
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 19.2 18.5 0.7 3.8%
Construction in progress 14.7 86.2 (71.5) (82.9%)
Less accumulated depreciation (92.5) (86.3) (6.2) 7.2%
Totals 187.9$ 192.8$ (4.9)$ (2.5%)
Total City 757.3$ 725.5$ 31.8$ 4.4%
23
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
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
The decrease of $5.6 million in Governmental Activities outstanding debt stems from debt service
payments of $5.6 million during FY 2023-24.
The decrease of $4.3 million in Business-Type Activities outstanding debt also stems from debt
service payments of $4.3 million made during the fiscal year. This is consistent with the prior year
decrease as well, and relates to the ongoing, regular repayment of the loan balance.
The largest remaining debt obligations are as follows:
-2004, 2008, 2018 State Water Resources Control Board Loans – Original debt:
$83,826,034; 1.8% to 2.5% interest rate; due 4/30/26, 7/15/28, 10/3/42. These loans
were used to improve and expand the City’s Water Quality Control Plant (WQCP).
Loan proceeds were issued as projects progressed. Debt service payment commenced
one year after project completion. WQCP user fees support the debt service payments.
Because of the regional benefits and equity interest in these projects, the City of San
Bruno shares in the loan repayments for the two of the three current loans.
Increase / (Decrease)
Governmental Activities 2024 2023 Amount %
Lease Revenue Bonds 185.1$ 188.4$ (3.3)$ (1.8%)
Plus: Unamortized Bond Premium 30.4 31.8 (1.4) (4.4%)
Loan payable to Successor Agency 1.2 2.1 (0.9) (42.9%)
Total Governmental Activities Outstanding Debt 216.7$ 222.3$ (5.6)$ (2.5%)
Business-type Activities
State Water Resources Board loans 54.5$ 58.4$ (3.9)$ (6.7%)
2005 Sewer Bonds 1.2 1.6 (0.4) (25.0%)
Total Business-type Activities Outstanding Debt 55.7$ 60.0$ (4.3)$ (7.2%)
24
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
For Fiscal Year Ended June 30, 2024
-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. The current outstanding principal
amount as of June 30, 2024 is $39,880,000.
-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. The current outstanding principal amount as of June 30, 2024 is
$78,805,000.
-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. The current outstanding principal amount
as of June 30, 2024 is $65,420,000.
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.
25
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CITY OF SOUTH SAN FRANCISCO
STATEMENT OF NET POSITION AND
STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial
activities and financial position.
The Statement of Net Position reports the excess of the City’s total assets and deferred outflows of
resources over the City’s total liabilities and deferred inflows of resources, including all the City’s capital
assets and all its long-term debt. The Statement of Net Position focuses the reader on the composition of
the City’s net position, by subtracting total liabilities and deferred inflows of resources from total assets
and deferred outflows of resources.
The Statement of Net Position summarizes the financial position of all the City’s Governmental Activities
in a single column, and the financial position of all the City’s Business-Type Activities in a single
column; these columns are followed by a total column which presents the financial position of the entire
City.
The City’s Governmental Activities include the activities of its General Fund, along with all its Special
Revenue, Capital Projects and Debt Service Funds. Since the City’s Internal Service Funds service these
Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund
transactions and balances. The City’s Business Type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared
on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of
when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial
statements, which reflect only current assets, current liabilities, available revenues and measurable
expenditures.
The Statement of Activities presents the City’s expenses first, listed by program, and follow these with
the expenses of its business-type activities. Program revenues—that is, revenues which are generated
directly by these programs—are then deducted from program expenses to arrive at the net expense of each
governmental and business-type program. The City’s general revenues are then listed in the
Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net
Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City, the City of South San Francisco Capital
Improvements Financing Authority, the Parking Authority of the City of South San Francisco and the
City of South San Francisco Public Facilities Financing Authority that are legally separate but are
component units of the City because they are controlled by the City, which is financially accountable for
the activities. Data for the South San Francisco Conference Center Authority is reflected as a discretely
presented component unit of the City. This data is presented separately from other funds of the City to
reflect operations under control of a governing body with a voting majority which is different from the
City Council.
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)$310,660,105 $38,859,752 $349,519,857 $4,436,299
Receivables:
Accounts 23,384,093 1,956,947 25,341,040 375,524
Accrued interest 1,831,987 194,830 2,026,817
Loans 1,133,309 1,133,309
Employee loans (Note 1T)100,000 100,000
Leases (Note 10)17,249,557 17,249,557
Deposits 309,790 309,790 42,069
Inventory 574 574
Prepaid items 1,296,700 1,296,700
Restricted cash and investments (Note 2)59,345,147 63 59,345,210
Properties held for redevelopment (Note 1O)3,552,149 3,552,149
Capital assets (Note 3):
Nondepreciable 366,871,612 15,513,216 382,384,828 23,925
Depreciable, net accumulated depreciation 202,506,489 172,337,497 374,843,986 2,431,039
Total Assets 988,241,512 228,862,305 1,217,103,817 7,308,856
DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 7)54,672,658 6,074,740 60,747,398
Related to OPEB (Note 9)9,388,568 1,043,174 10,431,742
Total Deferred Outflows of Resources 64,061,226 7,117,914 71,179,140
LIABILITIES
Accounts payable 8,596,619 841,605 9,438,224 351,365
Accrued salaries and benefits 2,359,771 2,359,771 75,709
Accrued interest payable 671,562 753,681 1,425,243
Other payables 4,009,575 182,110 4,191,685
Deposits payable 3,861,996 7,500 3,869,496 508,244
Unearned revenue 4,051,966 44,942 4,096,908
Accrued insurance losses (Note 12):
Due within one year 3,802,759 3,802,759
Due in more than one year 14,434,000 14,434,000
Compensated absences obligation (Note 1M):
Due within one year 6,465,618 693,825 7,159,443
Due in more than one year 3,362,191 311,388 3,673,579
Debt and lease financing obligations (Note 5):
Due within one year 5,170,000 4,433,082 9,603,082
Due in more than one year 211,518,616 51,265,794 262,784,410
Lease liability (Note 10):
Due within one year 370,871
Due in more than one year 1,329,017
Net pension liability - due in more than one year (Note 7) 216,473,465 24,052,607 240,526,072
Net OPEB Liability - due in more than one year (Note 9) 48,338,984 5,370,998 53,709,982
Total Liabilities 533,117,122 87,957,532 621,074,654 2,635,206
DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 7) 455,033 50,559 505,592
Related to OPEB (Note 9) 8,631,517 959,057 9,590,574
Related to leases (Note 10) 16,512,778 16,512,778
Total Deferred Inflows of Resources 25,599,328 1,009,616 26,608,944
NET POSITION (Note 6)
Net investment in capital assets 413,101,538 132,151,837 545,253,375 755,076
Restricted for:
Debt service
Special revenue projects 53,597,615 53,597,615
Capital projects 103,286,310 103,286,310
Redevelopment and community development activities 2,823,118 2,823,118
Total Restricted Net Position 159,707,043 159,707,043
Unrestricted (79,222,293) 14,861,234 (64,361,059) 3,918,574
Total Net Position $493,586,288 $147,013,071 $640,599,359 $4,673,650
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF NET POSITION
JUNE 30, 2024
29
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary Government
Governmental Activities:
General Government $16,789,551 $9,018,870 $7,471,327
Fire 39,521,911 9,241,357 98,116
Police 40,395,860 2,064,168 905,927
Public Works 28,825,661 18,318,463 8,234,308 $9,198,820
Parks and Recreation 26,613,851 4,247,632 499,078
Library 8,022,064 72,893 773,937
Economic and Community Development 12,148,452 14,136,592 1,186,182
Interest on long term debt 6,810,509
Total Governmental Activities 179,127,859 57,099,975 19,168,875 9,198,820
Business-type Activities
Sewer 32,039,611 25,987,927 8,659,655 2,692,083
Parking District 1,246,726 1,027,298
Storm Water 4,132,098 453,422 525,014
Total Business-type Activities 37,418,435 27,468,647 8,659,655 3,217,097
Total Primary Government $216,546,294 $84,568,622 $27,828,530 $12,415,917
Component Unit
Conference Center $4,989,033 $3,195,770
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
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, 2024
Program Revenues
30
Component Unit
South
San Francisco
Governmental Business-Type Conference
Activities Activities Total Center
($299,354)($299,354)
(30,182,438)(30,182,438)
(37,425,765)(37,425,765)
6,925,930 6,925,930
(21,867,141)(21,867,141)
(7,175,234)(7,175,234)
3,174,322 3,174,322
(6,810,509)(6,810,509)
(93,660,189)(93,660,189)
$5,300,054 5,300,054
(219,428)(219,428)
(3,153,662)(3,153,662)
1,926,964 1,926,964
(93,660,189)1,926,964 (91,733,225)
($1,793,263)
52,201,446 52,201,446
39,529,259 39,529,259
14,922,567 14,922,567 1,884,717
5,329,885 5,329,885
7,097,906 7,097,906
81,869 81,869
6,581,499 6,581,499
14,966,581 1,314,069 16,280,650 155,350
48,524 48,524
13,068,935 13,068,935 48,926
(917,154)917,154
152,911,317 2,231,223 155,142,540 2,088,993
59,251,128 4,158,187 63,409,315 295,730
434,335,160 142,854,884 577,190,044 4,377,920
$493,586,288 $147,013,071 $640,599,359 $4,673,650
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 2024. 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.
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 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, 2024
Capital Projects Funds
Capital
Capital Improvement
General Capital Infrastructure Orange
Fund Improvement Reserve Memorial Park
ASSETS
Cash and investments (Note 2)$94,701,752 $519,239 $19,146,909 $14
Receivables:
Accounts 16,741,316 7,267,297
Accrued interest 559,583 126,018
Loans
Employee loans (Note 1T)100,000
Leases (Note 10)16,084,447
Due from other funds (Note 4B)200,000
Inventory 574
Restricted cash and investments (Note 2)2,678,464 53,959,071
Properties held for redevelopment (Note 1O)2,823,118
Total Assets $131,110,790 $10,465,000 $19,372,927 $53,959,085
LIABILITIES
Liabilities:
Accounts payable $2,156,534 $3,677,359 $1,080,133
Accrued salaries and benefits 2,359,771
Other payable 480,065 2,081,469 160,752
Deposits payable 505,990
Unearned revenue 1,000,899 1,772,126
Due to other funds (Note 4B)
Total Liabilities 6,503,259 7,530,954 1,240,885
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 2,874,314 6,953,184
Related to leases (Note 10)15,388,754
Total Deferred Inflows of Resources 18,263,068 6,953,184
FUND BALANCE
Fund Balances (Note 6):
Nonspendable 696,267
Restricted 2,823,118 2,590,861 52,718,200
Committed 24,645,312
Assigned 7,761,552 $19,372,927
Unassigned 70,418,214 (6,609,999)
Total Fund Balances (Deficits)106,344,463 (4,019,138) 19,372,927 52,718,200
Total Liabilities, Deferred Inflows of
Resources and Fund Balances (Deficits)$131,110,790 $10,465,000 $19,372,927 $53,959,085
See accompanying notes to basic financial statements
34
Other Total
Governmental Governmental
Funds Funds
$153,162,417 $267,530,331
1,959,236 25,967,849
911,666 1,597,267
1,133,309 1,133,309
100,000
1,165,110 17,249,557
200,000
574
2,707,612 59,345,147
729,031 3,552,149
$161,768,381 $376,676,183
$718,606 $7,632,632
2,359,771
1,223,223 3,945,509
3,356,006 3,861,996
1,278,941 4,051,966
200,000 200,000
6,776,776 22,051,874
9,827,498
1,124,024 16,512,778
1,124,024 26,340,276
696,267
153,831,903 211,964,082
24,645,312
27,134,479
35,678 63,843,893
153,867,581 328,284,033
$161,768,381 $376,676,183
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 $328,284,033
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. 563,868,581
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. 29,183,859
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 (216,688,616)
Interest payable (671,562)
Deferred outflows related pension 54,672,658
Deferred outflows related to OPEB 9,388,568
Net OPEB liability (48,338,984)
Net pension liability (216,473,465)
Deferred inflows related to OPEB (8,631,517)
Deferred inflows related to pension (455,033)
Compensated absences (7,505,418)
Net position of governmental activities $493,586,288
See accompanying notes to financial statements
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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, 2024
Capital Projects Funds
Capital
Capital Improvement
General Capital Infrastructure Orange
Fund Improvement Reserve Memorial Park
REVENUES
Property taxes $56,352,378
Sales taxes 39,002,014
Transient occupancy taxes 14,922,567
Franchise Fees 5,329,885
Other taxes 7,097,906
Intergovernmental 6,497,111 $3,750,017
Interest and rentals 7,054,421 $829,323 $2,214,307
Licenses and permits 13,978,818
Charges for services 12,975,439 250,000
Fines and forfeitures 480,957
Other 339,588 2,398,929
Total Revenues 164,031,084 6,148,946 1,079,323 2,214,307
EXPENDITURES
Current:
City Council 301,415
City Clerk 972,958
City Treasurer 170,820
City Attorney 1,719,156
City Manager 3,571,928
Finance 3,267,080
Non-departmental 1,451,360
Human Resources 2,609,554
Fire 36,737,241
Police 37,093,241
Public Works 10,126,863 24,281,112 5,181 4,061,625
Parks and Recreation 22,747,701
Library 7,706,106
Economic and Community Development 11,123,819
Other
Capital Outlay 108,750
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 139,707,992 24,281,112 5,181 4,061,625
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 24,323,092 (18,132,166)1,074,142 (1,847,318)
OTHER FINANCING SOURCES (USES)
Transfers in (Note 4C)6,342,328 11,607,351
Transfers out (Note 4C)(12,880,123)(1,930,678)(3,238,588)
Total Other Financing Sources (Uses)(6,537,795) 11,607,351 (1,930,678)(3,238,588)
Net Change in Fund Balances 17,785,297 (6,524,815)(856,536)(5,085,906)
Fund balances - July 1, as previously reported 88,559,166 2,505,677 20,229,463 57,804,106
Adjustment - changes from major fund to nonmajor fund
Fund balances - July 1, as adjusted 88,559,166 2,505,677 20,229,463 57,804,106
Fund balances (deficits) - June 30 $106,344,463 ($4,019,138) $19,372,927 $52,718,200
See accompanying notes to financial statements
38
Capital Projects Funds
(Formerly Major) (Formerly Major)
Capital Capital Other Total
Improvement Improvement Governmental Governmental
Police Station Civic Campus Funds Funds
$2,430,567 $58,782,945
1,035,179 40,037,193
14,922,567
5,329,885
2,539,983 9,637,889
19,273,483 29,520,611
6,555,138 16,653,189
13,978,818
25,325,018 38,550,457
480,957
1,524,575 4,263,092
58,683,943 232,157,603
301,415
972,958
170,820
1,719,156
3,571,928
3,267,080
29,304 1,480,664
2,609,554
84,879 36,822,120
254,809 37,348,050
22,305,868 60,780,649
2,442,487 25,190,188
7,706,106
823,929 11,947,748
1,478,859 1,478,859
6,862,592 6,971,342
4,204,000 4,204,000
8,205,338 8,205,338
46,692,065 214,747,975
11,991,878 17,409,628
19,487,817 37,437,496
(20,555,261) (38,604,650)
(1,067,444)(1,167,154)
10,924,434 16,242,474
331,784 5,703,795 136,907,568 312,041,559
(331,784)(5,703,795)6,035,579
142,943,147 312,041,559
$153,867,581 $328,284,033
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, 2024
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $16,242,474
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 46,441,746
Current year depreciation (9,948,099)
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 4,204,000
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 5,541,168
Interest payable 12,216
Compensated absences (490,069)
Net pension liability, deferred outflows and inflows of resources (10,981,645)
Net OPEB liability, deferred outflows and inflows of resources 4,258,806
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.2,587,918
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $59,251,128
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, 2024
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $47,980,000 $49,280,000 $56,352,378 $7,072,378
Sales taxes 39,351,500 37,951,500 39,002,014 1,050,514
Transient occupancy taxes 14,910,000 14,000,000 14,922,567 922,567
Franchise fees 4,600,000 4,600,000 5,329,885 729,885
Other taxes 6,950,000 6,650,000 7,097,906 447,906
Intergovernmental 3,139,827 7,765,466 6,497,111 (1,268,355)
Interest and rentals 3,940,000 4,450,000 7,054,421 2,604,421
Licenses and permits 16,962,894 12,462,894 13,978,818 1,515,924
Charges for services 9,709,257 11,569,271 12,975,439 1,406,168
Fines and forfeitures 700,000 700,000 480,957 (219,043)
Other 337,826 337,826 339,588 1,762
Amounts available for appropriation 148,581,304 149,766,957 164,031,084 14,264,127
Charges to appropriations (outflows):
City Council 269,486 269,487 301,415 (31,928)
City Clerk 1,265,011 1,123,510 972,958 150,552
City Treasurer 133,428 133,428 170,820 (37,392)
City Attorney 1,108,825 1,108,825 1,719,156 (610,331)
City Manager 5,406,710 4,955,637 3,599,862 1,355,775
Finance 3,992,281 3,901,140 3,686,978 214,162
Non-departmental 1,394,367 1,394,368 1,742,622 (348,254)
Human Resources 2,884,524 2,849,228 2,857,825 (8,597)
Fire 32,761,869 36,750,577 37,327,182 (576,605)
Police 36,838,240 37,354,911 37,093,604 261,307
Public Works 11,954,045 14,239,034 11,399,312 2,839,722
Parks and Recreation 24,675,441 25,769,325 24,953,537 815,788
Library 8,044,806 8,013,719 7,712,864 300,855
Economic and Community Development 8,499,933 15,074,057 13,822,659 1,251,398
Capital Outlay 79,112 108,750 (29,638)
Total charges to appropriations 139,228,966 153,016,358 147,469,544 5,546,814
OTHER FINANCING SOURCES (USES)
Transfers in (Note 4C)7,581,177 8,992,379 6,342,328 (2,650,051)
Transfers out (Note 4C)(9,686,750) (26,359,981) (12,880,123) 13,479,858
Total Other Financing Sources (Uses)(2,105,573) (17,367,602) (6,537,795) 10,829,807
NET CHANGE IN FUND BALANCE $7,246,765 ($20,617,003) 10,023,745 $30,640,748
Fund Balance - July 1 88,559,166
Adjustment to budgetary basis:
Encumbrance adjustments 7,761,552
Fund Balance - June 30 $106,344,463
See accompanying notes to financial statements
Budgeted Amounts
41
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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, 2024
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)$31,869,399 $3,642,161 $3,348,192 $38,859,752 $43,129,774
Receivables:
Accounts 1,940,954 5,981 10,012 1,956,947 290,558
Accrued interest 154,599 22,445 17,786 194,830 234,720
Deposits 309,790
Prepaid items 1,296,700
Restricted cash and investments (Note 2)63 63
Total current assets 33,965,015 3,670,587 3,375,990 41,011,592 45,261,542
Noncurrent assets:
Capital assets (Note 3):
Nondepreciable 1,344,864 421,149 13,747,203 15,513,216
Depreciable, net accumulated depreciation 161,823,775 9,007,935 1,505,787 172,337,497 5,509,520
Total non-current assets 163,168,639 9,429,084 15,252,990 187,850,713 5,509,520
Total Assets 197,133,654 13,099,671 18,628,980 228,862,305 50,771,062
DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 7)6,074,740 6,074,740
Related to OPEB (Note 9)1,043,174 1,043,174
Total Deferred Outflows of Resources 7,117,914 7,117,914
LIABILITIES
Current liabilities:
Accounts payable 615,294 7,068 219,243 841,605 963,987
Other payable 36,058 146,052 182,110 64,066
Accrued interest payable 753,681 753,681
Deposits payable 7,500 7,500
Unearned revenue 44,942 44,942
Due to other funds (Note 4B)
Accrued insurance loss (Note 12)3,802,759
Compensated absences obligation (Note 1M)643,212 6,594 44,019 693,825 1,278,335
Current portion of long-term debt (Note 5)4,433,082 4,433,082
Total current liabilities 6,533,769 13,662 409,314 6,956,745 6,109,147
Noncurrent liabilities:
Accrued insurance losses (Note 12)14,434,000
Compensated absences obligation (Note 1M) 298,251 13,137 311,388 1,044,056
Noncurrent portion of long-term debt (Note 5)51,265,794 51,265,794
Net pension liability (Note 7)24,052,607 24,052,607
Net OPEB liability (Note 9)5,370,998 5,370,998
Total noncurrent liabilities 80,987,650 13,137 81,000,787 15,478,056
Total Liabilities 87,521,419 26,799 409,314 87,957,532 21,587,203
DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 7)50,559 50,559
Related to OPEB (Note 9)959,057 959,057
Total Deferred Inflows of resources 1,009,616 1,009,616
NET POSITION:
Net investment in capital assets 107,469,763 9,429,084 15,252,990 132,151,837 5,509,520
Unrestricted 8,250,770 3,643,788 2,966,676 14,861,234 23,674,339
Total Net Position $115,720,533 $13,072,872 $18,219,666 $147,013,071 $29,183,859
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, 2024
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds
OPERATING REVENUES
Charges for services $25,844,338 $451,722 $26,296,060 $34,876,208
Other cities' participation 8,659,655 8,659,655
Permit fees 143,589 143,589
Parking fees $1,027,298 1,027,298
Total Operating Revenues 34,647,582 1,027,298 451,722 36,126,602 34,876,208
OPERATING EXPENSES
Personnel expenses 11,824,025 362,347 1,239,132 13,425,504 21,003,586
Professional services 2,916,770 210,517 195,187 3,322,474 1,029,955
OPEB Expenses 535,039 1,613 536,652
Program supplies 2,233,224 69,000 2,541,029 4,843,253 2,346,366
Insurance 357,456 3,094 360,550 3,536,800
Self-insurance and claims 3,274,637
Repair and maintenance 1,704,928 42,514 1,747,442 1,053,697
Rents 1,689,059 1,689,059
Utilities 1,757,657 204,430 18,560 1,980,647 141,932
Administration 1,786,837 147,401 54,354 1,988,592
Depreciation 6,038,100 251,418 33,651 6,323,169 1,266,646
Other 75,514 4,577 80,091 649,434
Total Operating Expenses 30,918,609 1,246,726 4,132,098 36,297,433 34,303,053
Operating Income (Loss)3,728,973 (219,428) (3,680,376) (170,831)573,155
NONOPERATING REVENUES (EXPENSES)
Interest income 1,049,306 148,173 116,590 1,314,069 1,548,846
Gain on dispositions of capital assets 48,524
Interest expense (1,121,002)(1,121,002)
Other 1,700 1,700 167,393
Total Nonoperating Revenues (Expenses)(71,696)148,173 118,290 194,767 1,764,763
Income (loss) before contributions and transfers 3,657,277 (71,255) (3,562,086)23,936 2,337,918
TRANSFERS
Capital subventions and grants 2,692,083 525,014 3,217,097
Transfers in (Note 4C)4,327 2,657,131 2,661,458 250,000
Transfers (out) (Note 4C)(1,744,304)(1,744,304)
Change in Net Position 4,609,383 (71,255) (379,941) 4,158,187 2,587,918
Net Position - July 1 111,111,150 13,144,127 18,599,607 142,854,884 26,595,941
Net Position - June 30 $115,720,533 $13,072,872 $18,219,666 $147,013,071 $29,183,859
See accompanying notes to financial statements
45
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2024
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 $33,358,844 $1,030,598 $879,629 $35,269,071
Cash payments to suppliers for goods and services (13,329,350) (634,648) (2,559,718) (16,523,716) ($8,098,419)
Cash payments to employees for services (11,086,472) (358,483) (1,233,559) (12,678,514) (20,890,526)
Cash received from interfund service provided 35,209,359
Cash payments for judgments and claims (2,321,940)
Net Cash Provided by (Used in) Operating Activities 8,943,022 37,467 (2,913,648) 6,066,841 3,898,474
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 4,327 2,657,131 2,661,458 250,000
Transfers out (1,744,304)(1,744,304)
Net Cash Provided by Noncapital Financing Activities (1,739,977)2,657,131 917,154 250,000
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Proceeds from issuance of debt 1,776,356 1,776,356
Principal paid on long-term debt (4,368,202)(4,368,202)
Interest paid on long-term debt (1,131,820)(1,131,820)
Subventions and grants 2,692,083 525,014 3,217,097
Acquisition of capital assets, net (856,807)(493,767) (1,350,574) (1,447,666)
Proceeds from the sale of capital assets 48,524
Net Cash Used in Capital and Related Financing Activities (1,888,390)31,247 (1,857,143) (1,399,142)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received (paid)671,446 97,558 80,306 849,310 1,011,995
Changes in fair value of investments 320,913 46,591 36,920 404,424 487,229
Net Cash Provided by Investing Activities 992,359 144,149 117,226 1,253,734 1,499,224
Net Increase (Decrease) in cash and cash equivalents 6,307,014 181,616 (108,044) 6,380,586 4,248,556
Cash and cash equivalents, beginning 25,562,448 3,460,545 3,456,236 32,479,229 38,881,218
Cash and cash equivalents, ending $31,869,462 $3,642,161 $3,348,192 $38,859,815 $43,129,774
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)$3,728,973 ($219,428) ($3,680,376) ($170,831)$573,155
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation 6,038,100 251,418 33,651 6,323,169 1,266,646
Other non-operating revenue (expenses)1,700 1,700 167,393
Net change in assets and liabilities:
Accounts and lease receivables (1,284,738)3,300 426,207 (855,231)165,758
Deposit
Prepaid items 61,584
Accounts payable (64,260)(1,624) 153,550 87,666 632,455
Other payable (208,606)(63) 146,047 (62,622)(115,659)
Unearned revenue (4,000)(4,000)
Accrued insurance losses 952,697
(Decrease) increase due to retirement system 1,152,627 1,152,627
(Decrease) increase due to OPEB (473,201)(473,201)
Compensated absence obligations 58,127 3,864 5,573 67,564 194,445
Net Cash Provided by (Used in) Operating Activities $8,943,022 $37,467 ($2,913,648) $6,066,841 $3,898,474
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)$129,172
Accounts receivable $141,304
Interest receivable 15,653 1,066
Advances to the City (Note 5) 1,166,152
Loans receivable (Note 14B) 80,572
Restricted cash and investments (Note 2) 10,945,347 2,447,652
Capital assets (Note 14C):
Nondepreciable 111,219
Depreciable, net accumulated depreciation 224,938
Total Assets 12,685,185 2,577,890
LIABILITIES
Accounts payable 2,038
Total Liabilities 2,038
NET POSITION
Held in trust for other purposes 12,683,147
Restricted for others 129,894
Restricted for bondholders 2,447,996
Total Net Position $12,683,147 $2,577,890
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2024
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 $1,036,213
Plan contributions 53,635
Interest and rentals $642,233 122,612
Other 23,281
Total Additions 665,514 1,212,460
DEDUCTIONS
Economic and Community Development 11,841,451
Professional services 24,801
Payments to bondholders 962,493
Depreciation 6,593
Total Deductions 11,848,044 987,294
Change in net position (11,182,530) 225,166
NET POSITION
Beginning of the year 23,865,677 2,352,724
End of the year $12,683,147 $2,577,890
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, 2024
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 2024. 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, 2024
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, 2024
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.
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 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.
53
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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.
54
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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 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, 2024.
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.
55
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Certain indirect costs are included in program expenses reported for individual functions and
activities.
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, 2024:
Expenditures in
Excess of Budget
(Non GAAP
Legal Basis)
General Fund:
City Council $31,928
City Treasurer 37,392
City Attorney 610,331
Non-departmental 348,254
Human Resources 8,597
Fire 576,605
Capital Outlay 29,638
Non-Major Funds:
Supplemental Law Enforcement Services Special Revenue Fund 28,029
City Programs Special Revenue Fund 774,354
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.
56
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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 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:
City
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
Authority
Buildings 30-40 years
Improvements 5-10 years
Machinery and vehicles 5-10 years
Furniture and fixtures 5-10 years
Food service equipment 5-15 years
Kitchen tableware 5-10 years
Office and maintenance equipment 2-5 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.
57
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The long-term portion of the liability for compensated absences for governmental fund type
operations is recorded as compensated absences in the government-wide financial statements. The
portion expected to be permanently liquidated is recorded in the Health and Retirement Benefits
Internal Service Fund. Proprietary fund liabilities are recorded within their respective funds.
The changes of the compensated absences were as follows:
Governmental Business-Type
Activities Activities Total
Beginning Balance $9,143,295 $937,649 $10,080,944
Additions 7,067,577 785,301 7,852,878
Payments (6,383,063) (717,737) (7,100,800)
Ending Balance $9,827,809 $1,005,213 $10,833,022
Current Portion $6,465,618 $693,825 $7,159,443
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.
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.
58
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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.
59
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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. The City did not have any subscription agreements that met the
capitalization threshold as of June 30, 2024.
T. Employee Downpayment Assistance Loan Program – The City established an employee down
payment assistance loan program in 2017 and appropriated $1 million for the program, offering a
loan of up to $100,000 to full-time employees that have passed their probationary period and are
a first time homebuyer (meaning they have not owned a home in three years). The employee
borrower is required to put down at least 3% of the purchase price and the loan term is up to 30
years and the home must be located within the counties of San Francisco and San Mateo. The
loan does not bear interest, but is instead a shared appreciation loan. The loan becomes due and
payable upon transfer of title, the home is no longer owner-occupied, upon a cash-out refinance,
and/or when the employee no longer works for the City (the employee would have 12 months to
refinance and repay the loan, with a one-time extension for a documented hardship).
In August 2023, the City loaned $100,000 to a City employee for the purpose of purchasing a
home. The loan is secured by a deed of trust, has a term of 30 years and the shared appreciation
is 6.23% of the principal outstanding on the loan divided by the purchase price, multiplied by the
appreciation. The appreciation is calculated based on the difference between the purchase price
and the sales price at the time of resale or the fair market value in the event of prepayment of the
note or default or the amount paid by a creditor for title to the property if acquired through a deed
in lieu of foreclosure, less any fees. If the employee prepays the loan on or before the 5th
anniversary of the loan effective date, the shared appreciation is capped at the rate of 5%. In the
event the employee rents any portion of the property, the rental payments are due and payable to
the City.
U. 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.
60
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
V. New Accounting Pronouncement
GASB Statement No. 100 – In June 2022, GASB issued Statement No. 100, Accounting
Changes and Error Corrections—an Amendment of GASB Statement No. 62. The primary
objective of this Statement is to enhance accounting and financial reporting requirements for
accounting changes and error corrections to provide more understandable, reliable, relevant,
consistent, and comparable information for making decisions or assessing accountability. The
provisions of this Statement were implemented during fiscal year 2024 related to the change
within the financial reporting entity for the presentation of a new major fund’s beginning fund
balance, as noted on the Governmental Funds Statement of Revenues, Expenditures and Changes
in Fund Balances.
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.
61
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 2 – CASH AND INVESTMENTS (Continued)
B. Classification
Cash and investments as of June 30, 2024 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 $349,519,857
Restricted cash and investments 59,345,210
Total Primary Government cash and investments 408,865,067
Statement of Fiduciary Net Position:
Cash and investments available for operations 129,172
Restricted cash and investments 13,392,999
Total Fiduciary cash and investments 13,522,171
Conference Center:
Cash and investments available for operations 4,436,299
Total South San Francisco
Conference Center cash and investments 4,436,299
Total cash and investments $426,823,537
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.
62
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 2 – CASH AND INVESTMENTS (Continued)
C. Investments Authorized by the California Government Code and the City’s Investment Policy
The City’s investment policy and the California Government Code allow the City to invest in the
following provided the credit ratings of the issuers are acceptable to the City and approved
percentages and maturities are not exceeded. The table below also identifies certain provisions of
the California Government Code, or the City’s Investment Policy where it is more restrictive:
Minimum Maximum Maximum
Maximum Credit Percentage Investment
Authorized Investment Type Maturity Quality (A) of Portfolio in One Issuer
U.S. Treasury Securities 5 years N/A No Limit No Limit
Federal Agency or U.S. 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% (B)
Asset-Backed Securities 5 years AA 20%5%
Commercial Paper 270 days A1,P1 25% 5% (B)
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
per acct No Limit
Money Market Mutual Funds N/A AAAm 20% 10%
Investment Rating System, or its equivalent.
(B) No more than 10% of the outstanding commercial paper and medium-term notes
of any single issuer.
(A) The City's Investment Policy includes credit ratings provided by Standard and Poor's
63
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
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, 2024
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 More than Five
1 year Years Years Total
City and Fiduciary:
U.S. Treasury Securities $65,795,122 $59,414,471 $125,209,593
Federal Agency Securities 5,572,339 48,316,239 53,888,578
Local Agency Investment Fund 120,519,709 120,519,709
Money Market Funds 19,934,742 19,934,742
Corporate Medium Term Notes 2,231,007 48,487,533 50,718,540
Asset-Backed Securities 31,938,161 31,938,161
Supranational Obligations 8,849,054 8,849,054
South San Francisco Conference Center:
Local Agency Investment Fund 3,982,761 3,982,761
Total Investments $218,035,680 $197,005,458 415,041,138
Cash in Banks and on Hand - City of South San Francisco 11,328,861
Cash in Banks and on Hand - South San Francisco Conference Center 453,538
Total Cash and Investments $426,823,537
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, 2024, these investments have an
average maturity of 217 days.
Money market funds are available for withdrawal on demand and as of June 30, 2024 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, 2024
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, 2024, for each
of the Primary Government’s investment types as provided by Moody’s investment rating system,
except as noted:
Investment Type AAA/AAAmf Aa1-Aa3 A1-A3 Total
City and Fiduciary:
Federal Agency Securities $53,888,578 $53,888,578
Money Market Funds 19,934,742 19,934,742
Corporate Medium Term Notes 3,608,218 $16,318,485 $30,791,837 50,718,540
Asset-Backed Securities 21,836,776 21,836,776
Supranational Obligations 8,849,054 8,849,054
Totals $108,117,368 16,318,485$ 30,791,837$ 155,227,690
City and Fiduciary:
Not rated:
Asset-Backed Securities 10,101,385 (A)
Local Agency Investment Fund 120,519,709
Exempt from credit rating disclosure:
U.S. Treasury Securities 125,209,593
Not rated:
Local Agency Investment Fund 3,982,761
Total Investments $415,041,138
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, 2024
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, 2024:
Level 2 Total
Investments by Fair Value Level:
City and Fiduciary:
U.S. Treasury Securities $125,209,593 $125,209,593
Federal Agency Securities 53,888,578 53,888,578
Corporate Medium Term Notes 50,718,540 50,718,540
Asset Backed Securities 31,938,161 31,938,161
Supranational Obligations 8,849,054 8,849,054
Totals $270,603,926 270,603,926
Investments Measured at Amortized Cost:
City and Fiduciary:
Money Market Mutual Funds 19,934,742
Investments Exempt from Fair Value Hierarchy:
City and Fiduciary:
Local Agency Investment Fund 120,519,709
South San Francisco Conference Center:
Local Agency Investment Fund 3,982,761
Total Investments $415,041,138
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.
I.Concentration of Credit Risk
Investments in the securities of any individual issuer, other than U. S. Treasury securities, that
represent 5 percent or more of total investments are as follows at June 30, 2024:
Issuer Investment Type Amount
Federal Farm Credit Banks (FFCB) Federal Agency Securities $24,083,889
67
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 3 – CAPITAL ASSETS
A.Capital Asset Changes – Changes in capital assets during the fiscal year consist of:
Balance
June 30, 2023 Additions Retirements Transfers
Balance
June 30, 2024
Governmental activities
Capital assets not being depreciated:
Land $72,238,228 $5,490,074 $77,728,302
Construction in Progress 260,914,304 39,420,106 ($7,302) ($11,183,798) 289,143,310
Total capital assets not being depreciated 333,152,532 44,910,180 (7,302) (11,183,798) 366,871,612
Capital assets being depreciated:
Buildings and Improvements 150,492,534 1,372,517 1,716,144 153,581,195
Infrastructure - Streets 208,348,708 4,470,084 212,818,792
Infrastructure - Storm Drains 8,927,492 8,927,492
Infrastructure - Traffic Control Devices 12,591,370 4,997,570 17,588,940
Equipment and Vehicle 7,382,928 166,351 (36,914)7,512,365
Furniture and Fixtures 2,614,215 2,614,215
Total capital assets being depreciated 390,357,247 1,538,868 (36,914) 11,183,798 403,042,999
Less accumulated depreciation for:
Buildings and Improvements (50,319,388) (3,638,355)(53,957,743)
Infrastructure - Streets (126,957,137) (5,365,299)(132,322,436)
Infrastructure - Storm Drains (4,389,061) (204,499)(4,593,560)
Infrastructure - Traffic Control Devices (5,743,324) (579,121)(6,322,445)
Equipment and Vehicle (6,667,213) (80,846)36,914 (6,711,145)
Furniture and Fixtures (2,058,722) (79,979)(2,138,701)
Total accumulated depreciation (196,134,845) (9,948,099)36,914 (206,046,030)
Net Governmental Fund
Capital Assets Being Depreciated 194,222,402 (8,409,231)11,183,798 196,996,969
Internal Service Fund Capital Assets
Capital assets being depreciated:
Equipment and Vehicle 18,503,026 1,447,666 (319,538)19,631,154
Accumulated depreciation (13,174,526) (1,266,646) 319,538 (14,121,634)
Net Internal Service Fund Capital Assets
Being Depreciated 5,328,500 181,020 5,509,520
Governmental activities capital assets, net $532,703,434 $36,681,969 ($7,302)$569,378,101
Total capital assets not being depreciated $333,152,532 $44,910,180 ($7,302) ($11,183,798) $366,871,612
Net capital assets being depreciated 199,550,902 (8,228,211)11,183,798 202,506,489
Governmental activities capital assets, net $532,703,434 $36,681,969 ($7,302)$569,378,101
68
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 3 – CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2023 Additions Retirement Transfer June 30, 2024
Business-type activities
Capital assets, not being depreciated:
Land $794,587 $794,587
Construction in Progress 86,190,801 $586,324 ($72,058,496) 14,718,629
Total capital assets not being depreciated 86,985,388 586,324 (72,058,496) 15,513,216
Capital assets being depreciated:
Buildings and Improvements 80,173,059 72,058,496 152,231,555
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 18,455,546 764,250 ($15,029)19,204,767
Furniture and Fixtures 31,154 31,154
Total capital assets being depreciated 192,115,764 764,250 (15,029) 72,058,496 264,923,481
Less accumulated depreciation for:
Buildings and Improvements (26,924,993) (3,250,989)(30,175,982)
Clean Water Facilities and Lines (39,639,809) (1,936,594)(41,576,403)
Infrastructure - Storm Drains (1,946,692) (187,980)(2,134,672)
Infrastructure - Streets (2,888,541) (209,571)(3,098,112)
Equipment and Vehicle (14,846,655) (738,035)15,029 (15,569,661)
Furniture and Fixtures (31,154)(31,154)
Total accumulated depreciation (86,277,844) (6,323,169)15,029 (92,585,984)
Net capital assets being depreciated 105,837,920 (5,558,919)72,058,496 172,337,497
Business-type activities capital assets, net $192,823,308 ($4,972,595)$187,850,713
Balance Balance
June 30, 2023 Additions Retirements June 30, 2024
Component Unit:
South San Francisco Conference Center
Capital assets not being depreciated:
Construction in Progress $23,925 $23,925
Capital assets being depreciated:
Depreciable:
Buildings and Improvements $10,928,538 $181,687 (52,665) 11,057,560
Furniture and Fixtures 932,393 6,000 ($9,628) 928,765
Machinery and Equipment 599,715 77,027 676,742
Total Depreciable 12,460,646 264,714 (62,293) 12,663,067
Right of Use Assets:
Leased Land 8,351,928 8,351,928
20,812,574 264,714 (62,293) 21,014,995
Less accumulated depreciation and
amortization
Depreciable (11,033,779) (374,133) 62,293 (11,345,619)
Leased Land (6,959,940) (278,397)(7,238,337)
(17,993,719) (652,530) 62,293 (18,583,956)
Capital Assets Being Depreciated 2,818,855 (387,816)2,431,039
Component Unit Capital Assets, Net $2,818,855 ($363,891)$2,454,964
69
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
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 $718,001
Fire 338,295
Police 1,096,756
Public works 7,089,247
Parks and recreation 576,702
Library 58,455
Economic and community development 70,643
Total Governmental Functions 9,948,099
Internal Service Funds 1,266,646
Total Governmental Activities $11,214,745
Business-Type Activities
Sewer Enterprise $6,038,100
Parking District 251,418
Storm Water 33,651
Total Business-Type Activities $6,323,169
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, 2024
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 Community Development Block Grant Special Revenue Fund $100,000
Oyster Point Development Impact Fees Capital Projects Fund 100,000
$200,000
C.Transfers
Transfers between funds during the fiscal year ended June 30, 2024 were as follows:
FROM FUND (OUT) TO FUND (IN)AMOUNT
General Fund Capital Improvement Capital Projects Fund $896,323
Non-Major Governmental Funds 11,483,800
Storm Water Enterprise Fund 250,000
Retiree Health Benefits Internal Service Fund 250,000
Capital Infrastructure Reserve Capital Projects Fund Capital Improvement Capital Projects Fund 1,930,678
Capital Improvements Orange Memorial
Park Capital Projects Fund Non-Major Governmental Funds 3,238,588
Non-Major Governmental Funds General Fund 6,342,328
Capital Improvement Capital Projects Fund 8,719,869
Non-Major Governmental Funds 4,765,429
Sewer Enterprise Fund 4,327
Storm Water Enterprise Fund 723,308
Sewer Enterprise Fund Capital Improvement Capital Projects Fund 60,481
Storm Water Enterprise Fund 1,683,823
Total $40,348,954
71
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
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, 2024 follows:
Authorized
and Balance at Balance at Current
Issued June 30, 2023 Retirement June 30, 2024 Portion
Governmental Activities
Lease Revenue Bonds:
2020A Police Station Project, 4.00 to 5.00% (1) $43,905,000 $40,960,000 $1,080,000 $39,880,000 $1,135,000
Plus: Unamortized bond premium 8,725,118 379,353 8,345,765
2021A Community Civic Campus Project, 4.00% (2) 86,410,000 82,045,000 2,240,000 79,805,000 2,330,000
Plus: Unamortized bond premium 16,667,239 724,663 15,942,576
2022A Orange Memorial Park Project, 4.00 to 5.25% (3) 65,420,000 65,420,000 65,420,000 1,705,000
Plus: Unamortized bond premium 6,407,720 278,597 6,129,123
Total Lease Revenue Bonds 195,735,000 220,225,077 4,702,613 215,522,464 5,170,000
Direct Borrowing:
2007 Loans Payable to the Successor Agency (4)2,050,152 884,000 1,166,152
Total Direct Borrowing 2,050,152 884,000 1,166,152
Net Governmental Long-Term Debt $195,735,000 $222,275,229 $5,586,613 $216,688,616 $5,170,000
Business-Type Activities
Revenue Bonds:
2005 Water and Wastewater Revenue Bonds,$6,000,000 $1,620,000 $375,000 $1,245,000 $395,000
2.75 to 4.75%, due 04/30/26 (5)
Direct Borrowing:
2004 State Water Resources Loan, 2.5%, due 1/1/27 (6) 21,258,529 4,004,293 1,301,944 2,702,349 1,334,493
2008 State Water Resources Loan, 2.4%, (7) 9,164,505 3,207,842 503,449 2,704,393 515,532
2018 State Water Resources Loan, 1.8% (8)53,403,000 51,234,943 2,187,809 49,047,134 2,188,057
Total Direct Borrowing 83,826,034 58,447,078 3,993,202 54,453,876 4,038,082
Net Business-Type Long-Term Debt $89,826,034 $60,067,078 $4,368,202 $55,698,876 $4,433,082
(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, 2024
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)2007 Loan Payable to the Successor Agency – 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 Redevelopment 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, 2024
NOTE 5 – LONG-TERM DEBT (Continued)
(5) 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, 2024, the City is in compliance with the provisions of Article VI of the Installment
Purchase Agreement associated with the 2005D Bonds.
The 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 $9.9 million which represented coverage of 5.33 over the
$1,848,676 in total debt service.
(6) In 2004, the State Water Resources Control Board (SWRCB) authorized a single loan to
improve and expand the City’s wastewater treatment plant. Loan proceeds were issued as the
projects progressed, with debt service payments commencing one year after project completion.
The loan agreements include provisions that, in the event of default, all principal payments shall
be immediately due and payable, interest on all amounts owed shall be paid at the highest legal
rate, and any additional payments shall be made. The SWRCB shall also enforce its rights under
the agreements through any judicial proceedings, whether in law or equity.
(7)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.
(8)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.
The first debt service payment starts on 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.
74
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 5 – LONG-TERM DEBT (Continued)
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
$25.3 million which represented coverage of 6.98 over the $3,651,345 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
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 6,165,000 7,066,837
2030-2034 35,080,000 31,080,738
2035-2039 43,400,000 22,762,937
2040-2044 53,525,000 12,631,213
2045-2046 24,795,000 1,671,912
185,105,000 $106,002,187 $1,245,000 $95,375
Plus: Unamortized bond premium 30,417,464
$215,522,464
Future debt service requirements, including interest and leases financings, but excluding the 2007
Loan payable to the Redevelopment Successor Agency in the amount of $1,166,152 at June 30,
2024, were as follows:
Direct Borrowings
For the Year Business-Type Activities
Ended June 30 Principal Interest
2025 $4,038,082 $1,015,313
2026 4,123,204 930,194
2027 2,808,110 843,532
2028 2,861,900 789,443
2029 2,916,737 734,607
2030-2034 12,399,420 2,955,109
2035-2039 13,556,272 1,798,258
2040-2043 11,750,151 533,473
Totals $54,453,876 $9,599,929
75
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 5 – LONG-TERM DEBT (Continued)
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 still in service leased through the issuance of leasing arrangements
follows:
Original
Leasing Arrangement Fund/Activity Cost
Capital Leases Governmental Activity $4,674,699
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, 2024, that amount was $1,158,457,210. As of June 30, 2024,
the City did not have any outstanding debt applicable to the limit.
D. Debt without City Commitment
In April 2022 the Community Facilities District No. 2021-01 Special Tax Bonds, Series 2022 in
the amount of $19,685,000 were issued by the City of South San Francisco Community Facilities
District No. 2021-01. The City is the collecting and paying agent for the debt issued by the
District, but has no direct or contingent liability or moral obligation for the payment of this debt.
As of June 30, 2024 the outstanding balance of the issue was $19,610,000.
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.
76
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 6 – NET POSITION AND FUND BALANCE (Continued)
Restricted describes the portion of Net Position which is restricted as to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws, or other
restrictions which the City cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted to use.
B. Fund Balance
The City’s fund balances are classified in accordance with generally accepted accounting
principles which require the City to classify its fund balances based on spending constraints
imposed on the use of resources.
For programs with multiple funding sources, the City prioritizes and expends funds in the
following order: Restricted, Committed, Assigned, and Unassigned. Each category in the
following hierarchy is ranked according to the degree of spending constraint.
Nonspendables represents balances set aside to indicate items do not represent available,
spendable resources even though they are a component of assets. Fund balances required to be
maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such
as prepaids, notes receivable, and land held for redevelopment are included. However, if
proceeds realized from the sale or collection of nonspendable assets are restricted, committed or
assigned, then Nonspendable amounts are required to be presented as a component of the
applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors,
laws, regulations, or enabling legislation which requires the resources to be used only for a
specific purpose. Nonspendable amounts subject to restrictions are included along with spendable
resources.
Committed fund balances have constraints imposed by Council Resolution of the City Council
which may be altered only by Council Resolution of the City Council. Nonspendable amounts
subject to council commitments are included along with spendable resources.
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.
77
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 6 – NET POSITION AND FUND BALANCE (Continued)
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, 2024, are below:
Capital Project Funds
Capital
Capital Improvements Other
General Capital Infrastructure Orange Governmental
Fund Balance Classifications Fund Improvement Reserve Fund Memorial Park Funds
Nonspendables:
Items not in spendable form:
Inventory and prepaid items $574
Leases 695,693
Total Nonspendable Fund Balances 696,267
Restricted for:
Civic campus projects $2,590,861 $52,718,200 $2,343,160
Police station projects 110,261
Redevelopment and community
development activities 2,823,118
Gas Tax projects 852,546
Developer contributions projects 7,834,404
Community Development Block Grant projects 158,250
Maintenance districts projects 5,204,999
Transportation sales tax projects 7,352,752
City programs projects 16,654,537
Low and moderate housing projects 3,009,469
Other Special Revenues projects 12,530,658
Capital projects activities 97,780,867
Total Restricted Fund Balances 2,823,118 2,590,861 52,718,200 153,831,903
Committed for:
Capital projects 3,921,810
Local services 20,723,502
Total Committed Fund Balances 24,645,312
Assigned to:
Capital projects 7,761,552
Capital infrastructure projects $19,372,927
Total Assigned Fund Balances 7,761,552 19,372,927
Unassigned:
General fund 70,418,214
Other fund deficits (6,609,999)35,678
Total Unassigned Fund Balances 70,418,214 (6,609,999)35,678
Total Fund Balances $106,344,463 ($4,019,138) $19,372,927 $52,718,200 $153,867,581
78
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 6 – NET POSITION AND FUND BALANCE (Continued)
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, 2024, were as listed below:
General Fund $7,761,552
Capital Improvement Capital Projects Fund 23,510,183
Capital Infrastructure Reserve Capital Projects Fund 1,612,169
Capital Improvements Orange Memorial Park 39,880,126
Other Governmental Funds 9,143,094
Total $81,907,124
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.
79
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 7 – PENSION PLAN (Continued)
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.
The Plans’ provisions and benefits in effect at June 30, 2024, 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%7.25%
Required employer contribution rates 10.27%10.27%10.27%
Required Unfunded Actuarial Liability Contribution $7,310,052
* 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%12.5%
Required employer contribution rates 22.32%22.32%22.32%
Required Unfunded Actuarial Liability Contribution $10,046,255
** 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.
80
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 7 – PENSION PLAN (Continued)
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, 2024
were $7,310,052 and $10,046,255, respectively, which were made under the lump sum payment
option.
Employees Covered – As of the June 30, 2022 actuarial valuation date and the June 30, 2023
measurement date, the following employees were covered by the benefit terms for the Plans:
Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 511 326
Inactive employees entitled to but not yet receiving benefits 421 102
Active employees 290 153
Total 1,222 581
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, 2023, using an annual actuarial valuation as of June 30, 2022 rolled forward to June 30,
2023 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.
81
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 7 – PENSION PLAN (Continued)
Actuarial Assumptions – The total pension liabilities as of the June 30, 2023 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)
6/30/2022
6/30/2023
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 2021 CalPERS Experience Study & Review of Actuarial Assumptions. Mortality rates incorporate
full generational mortality improvements using 80% of Scale MP-2020 published by the Society of Actuaries.
For more details on this table, please refer to the 2021 experience study report from November 2021 that can be
found on the CalPERS website.
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%
The underlying mortality assumptions and all other actuarial assumptions used in the June 30,
2022 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.
82
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 7 – PENSION PLAN (Continued)
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.
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 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -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.
83
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
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, 2022 (Measurement Date)$279,928,752 $184,118,147 $95,810,605
Changes in the year:
Service cost 5,072,877 5,072,877
Interest on the total pension liability 19,261,245 19,261,245
Changes of benefit terms 308,146 308,146
Changes of assumptions
Differences between actual and expected experience 4,176,186 4,176,186
Plan to plan resource movement
Contribution - employer 10,651,569 (10,651,569)
Contribution - employees 2,150,828 (2,150,828)
Net investment income 11,414,408 (11,414,408)
Benefit payments, including refunds of employee
contributions (15,602,083) (15,602,083)
Administrative expenses (135,392) 135,392
Other Miscellaneous Income/(Expense)
Net changes 13,216,371 8,479,330 4,737,041
Balance at June 30, 2023 (Measurement Date)$293,145,123 $192,597,477 $100,547,646
Safety Plan:
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2022 (Measurement Date)$404,168,106 $269,583,647 $134,584,459
Changes in the year:
Service cost 7,558,887 7,558,887
Interest on the total pension liability 27,750,115 27,750,115
Changes of benefit terms 167,406 167,406
Changes of assumptions
Differences between actual and expected experience 4,909,741 4,909,741
Plan to plan resource movement
Contribution - employer 15,352,613 (15,352,613)
Contribution - employees 3,143,555 (3,143,555)
Net investment income 16,694,253 (16,694,253)
Benefit payments, including refunds of employee
contributions (21,698,219) (21,698,219)
Administrative expenses (198,239) 198,239
Other Miscellaneous Income/(Expense)
Net changes 18,687,930 13,293,963 5,393,967
Balance at June 30, 2023 (Measurement Date)$422,856,036 $282,877,610 $139,978,426
Grand Total - Both Plans $716,001,159 $475,475,087 $240,526,072
84
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
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 $138,820,419 $197,528,405
Current Discount Rate 6.90%6.90%
Net Pension Liability $100,547,646 $139,978,426
1% Increase 7.90%7.90%
Net Pension Liability $68,990,767 $92,878,819
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, 2024, the City recognized pension expense of $15,975,319 and
$22,780,883 for the Miscellaneous and Safety Plans, respectively, for total pension expense of
$38,756,202. At June 30, 2024, 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 $8,928,580
Changes of assumptions 2,438,341
Differences between actual and expected experience 2,629,450 ($277,335)
Net differences between projected and actual earnings on
plan investments 8,695,153
Total $22,691,524 ($277,335)
Safety Plan:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $17,693,350
Changes of assumptions $4,194,985 ($228,257)
Differences between actual and expected experience 3,383,141
Net differences between projected and actual earnings on
plan investments 12,784,398
Total $38,055,874 ($228,257)
Grand Total $60,747,398 ($505,592)
85
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 7 – PENSION PLAN (Continued)
$22,691,524 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, 2025. 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
2025 $5,243,093
2026 1,929,196
2027 6,078,093
2028 235,227
Safety Plan:
Year Ended Annual
June 30 Amortization
2025 $7,894,281
2026 2,876,680
2027 9,006,903
2028 356,403
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.
86
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
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.
Benefits provided – The following is a summary of Plan benefits by employee group as of June 30,
2024:
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 th eir pre-M edicare 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, 2024, the City’s contributions to the Plan were $5,215,767.
Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the
measurement date of the June 30, 2023 measurement date:
Active employees 375
Inactive employees or beneficiaries currently
receiving benefit payments 156
Total 531
87
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 9 – OTHER POST-EMPLOYMENT BENEFITS (Continued)
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.
D. Net OPEB Liability
Actuarial Methods and Assumptions – The City’s net OPEB liability was measured as of June
30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by
an actuarial valuation dated June 30, 2022, rolled forward to June 30, 2023, based on the
following actuarial methods and assumptions:
Valuation Date • June 30, 2023
Measurement Date • June 30, 2023
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 18 years remaining for 2023/24
Asset Valuation Method • Investment gains and losses spread over 5-year rolling
period
• 6.25% at June 30, 2023
• 6.25% at June 30, 2022
• Expected City contributions projected to keep sufficient
plan assets to pay all benefits from trust.
Inflation • 2.50% annually
Salary Increases • Aggregate - 2.75% annually
• Merit - CalPERS 2000-2019 Experience Study
Healthcare/Medical Trend • Non-Medicare - 8.50% for 2025, decreasing to an
ultimate rate of 3.45% in 2076
• Medicare (Non-Kaiser) - 7.50% for 2025, decreasing to
an ultimate rate of 3.45% in 2076
• Medicare (Kaiser) - 6.25% for 2025, decreasing to an
ultimate rate of 3.45% in 2076.
Mortality, Retirement, Disability,
Termination
• CalPERS 2000-2019 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
88
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
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, 2023, the medical trend rate was
updated and the Experience Study was updated to CalPERS 2000-2019.
89
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
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, 2023 Measurement Date $94,931,780 $30,019,481 $64,912,299
Changes Recognized for the Measurement Period:
Service Cost 1,306,697 1,306,697
Interest on the total OPEB liability 5,866,485 5,866,485
Changes in benefit terms
Differences between expected and actual experience (16,440,986)(16,440,986)
Changes of assumptions 5,560,618 5,560,618
Contributions from the employer 5,551,201 (5,551,201)
Net investment income 1,952,728 (1,952,728)
Benefit payments (4,749,439) (4,749,439)
Administrative expenses (8,798)8,798
Net changes (8,456,625) 2,745,692 (11,202,317)
Balance at June 30, 2024 Measurement Date $86,475,155 $32,765,173 $53,709,982
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%)
$64,481,646 $53,709,982 $44,752,882
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
$44,143,775 $53,709,982 $65,239,140
90
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
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, 2024, the City recognized OPEB expense of $483,760. At June 30,
2024, 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 $5,215,767
Differences between actual and expected experience ($9,590,574)
Changes in assumptions 3,243,693
Net differences between projected and actual earnings on
plan investments 1,972,282
Total $10,431,742 ($9,590,574)
$5,215,767 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,
2025. 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
2025 ($4,124,291)
2026 (1,564,310)
2027 1,326,051
2028 (12,049)
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 $398,600. Employer contributions of $634,838 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.
91
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
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,
2024, 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.
92
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
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, 2024
were:
Lease Deferred Inflows
Receivable of Resources
Governmental Activities
Leases Receivable (Lessor)
General Fund:
Conference Center $1,699,888 $1,782,964
Costco 3,598,989 3,450,076
Billboards 6,743,258 6,190,768
Park SFO 2,152,472 2,075,106
Bandwidth 1,889,840 1,889,840
Low and Moderate Income Housing Assets Fund:
Magnolia 1,165,110 1,124,024
Total governmental activities leases receivable $17,249,557 $16,512,778
93
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
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 $278,398 in
lease revenue and $60,010 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 $328,578 in lease revenue and
$112,660 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, 2024, the leases had 20 to 27
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 $252,170 in lease revenue and
$203,961 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.
Park SFO – The City leases land for two parking garages at the San Francisco International
Airport (SFO) to a third party under two lease agreements. The original terms of the leases were
thirty and thirty-nine years and as of June 30, 2024, the leases had twelve years remaining. The
annual rent increases 3% every five years. The City recognized $159,623 in lease revenue and
$82,256 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.
Bandwidth – In October 2023, the City entered into an agreement to lease land to a third party for
the installation of a fiber optic cable and conduit. The lease term is twenty-five years and the
annual rent is increased by the shelter component of the consumer price index. The City did not
recognize lease revenue or interest revenue during the current fiscal year related to this lease.
Also, the City has deferred inflows of resources associated with the lease 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 $35,444 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.
94
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 10 – LEASES (Continued)
C. Lease Payable
The Conference Center Authority’s lease payable consists of the following as of June 30, 2024:
Balance Balance Current
June 30, 2023 Deductions June 30, 2024 Portion
Land Lease $2,059,878 $359,990 $1,699,888 $370,871
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 $60,010 and
$359,990, 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, 2024 was $1,113,590, 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, 2024
was $1,699,888. 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, 2024 are as follows:
Year Ending Principal Interest
June 30 Payments Payments Total
2025 $370,871 $49,129 $420,000
2026 382,080 37,920 420,000
2027 393,629 26,371 420,000
2028 405,526 14,474 420,000
2029 147,782 2,219 150,001
$1,699,888 $130,113 $1,830,001
95
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
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.
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.
96
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
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 $34,000,000 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, 2024, the
City paid PLAN JPA $2,774,466 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.
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, 2024 Fiscal Year
Workers' General 2022-2023
Compensation Liability Total Total
Balance, beginning of year $16,909,000 $375,062 $17,284,062 $16,483,258
Current year claims and changes in
estimates of prior years claims 2,813,961 585,752 3,399,713 3,724,396
Claims Paid (2,237,961) (209,055) (2,447,016) (2,923,592)
Balance, end of year $17,485,000 $751,759 $18,236,759 $17,284,062
Current portion $3,051,000 $751,759 $3,802,759 $3,047,258
97
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
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.
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. A Mandatory Settlement Conference is
scheduled for September 2025, and a jury trial is scheduled for October 2025. 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.
98
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 13 – COMMITMENTS AND CONTINGENCIES (Continued)
E. Housing Successor Excess Surplus
Health and Safety Code (HSC) Section 34176.1(d) defines an excess surplus as an unencumbered
balance held by the housing successor that exceeds the greater of $1,000,000 or the aggregate
amount deposited into the housing successor fund during the housing successor’s preceding four
fiscal years, whichever is greater. If a housing successor has an excess surplus, the HSC Section
requires that the housing successor encumber the excess surplus for eligible purposes described in
the HSC Section 34176.1(a)(3) or transfer the funds to another local housing successor within
three fiscal years. If the housing successor fails to comply with this provision, the housing
successor, within 90 days of the end of the third fiscal year, is required to transfer any excess
surplus to the Department of Housing and Community Development for expenditure pursuant to
the Multifamily Housing Program or the Joe Serna, Jr. Farmworker Housing Grant Program.
In the fiscal year 2022 Housing Successor Report an excess surplus of $1,076,383 that must be
encumbered or expended within three fiscal years, or by the end of fiscal year 2025. This excess
surplus was committed to a predevelopment loan for the Rotary Gardens (522 Linden) project on
April 10, 2024 by Resolution 59-2024 and will be expended in fiscal year 2025.
Furthermore, the fiscal year 2023 Housing Successor Report identified an additional excess
surplus of $468,518, which must be encumbered or expended within three fiscal years, or by the
end of fiscal year 2026. City staff is in the process of identifying a suitable project to spend down
this excess surplus of $468,518 by the June 30, 2026 deadline.
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, 2024 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, 2024.
99
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
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.
100
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
NOTE 14 – FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
Capital assets recorded at June 30 are comprised of:
Balance Balance
June 30, 2023 Additions Deletion June 30, 2024
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 ($4,506) 237,684
Furniture and Fixtures 21,506 21,506
Total capital assets being depreciated 593,367 (4,506) 588,861
Less accumulated depreciation for:
Buildings and Improvements (98,140) ($6,593)(104,733)
Equipment and Vehicle (242,190)4,506 (237,684)
Furniture and Fixtures (21,506)(21,506)
Total accumulated depreciation (361,836) (6,593) 4,506 (363,923)
Net capital assets being depreciated 231,531 (6,593)224,938
Fiduciary activity capital assets, net $342,750 ($6,593)$336,157
D. Defeased Bonds
As of June 30, 2024, the outstanding balance of defeased debt was $2,735,000 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.
101
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2024
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.
102
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 6/30/2023
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 $5,072,877
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 19,261,245
Changes of benefit terms 308,146
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) 4,176,186
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) (15,602,083)
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 13,216,371
Total pension liability - beginning 188,659,588 196,752,130 198,871,260 205,260,076 227,427,722 233,975,819 244,816,128 254,824,922 264,236,232 279,928,752
Total pension liability - ending (a)196,752,130 198,871,260 205,260,076 227,427,722 233,975,819 244,816,128 254,824,922 264,236,232 279,928,752 293,145,123
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 $10,651,569
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 2,150,828
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) 11,414,408
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) (15,602,083)
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) (135,392)
Other miscellaneous income (443,767) 365
Ne t 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) 8,479,330
Plan fiduciary net position - beginning 125,614,993 143,740,988 142,302,730 139,167,698 149,962,251 157,470,642 163,510,764 167,734,633 202,373,505 184,118,147
Plan fiduciary net position - ending (b)143,740,988 142,302,730 139,167,698 149,962,251 157,470,642 163,510,764 167,734,633 202,373,505 184,118,147 192,597,477
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 $100,547,646
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% 65.70%
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 $31,400,311
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% 320.21%
Notes to Schedule:
Benefit changes:The figures above do not include any liability impact that may have resulted from plan changes which
occurred after the June 30 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years
Additional Service Credit (a.k.a. Golden Handshakes).
Changes in assumptions : In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019, 2020, 2021 and 2023,
there were no changes. In 2022, the accounting discount rate reduced from 7.15% to 6.90%. In 2015, amounts reported reflect an adjustment
of the discount rate form 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014,
amounts reported were based on the 7.5% discount rate.
104
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
Actuarially determined contribution $4,210,973 $5,399,856 $5,228,454 $6,166,024 $6,851,659
Contributions in relation to the actuarially
determined contributions 4,210,973 5,399,856 5,228,454 6,166,024 6,851,659
Contribution deficiency (excess)$0 $0 $0 $0 $0
Covered payroll $17,798,104 $21,409,193 $29,390,370 $23,630,354 $24,993,270
Contributions as a percentage of covered
payroll 23.66% 25.22% 17.79% 26.09% 27.41%
Valuation date:6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016
Fiscal Year Ended June 30 2020 2021 2022 2023 2024
Actuarially determined contribution $7,831,598 $8,616,536 $9,491,640 $10,675,385 $8,928,580
Contributions in relation to the actuarially
determined contributions 7,831,598 8,616,536 9,491,640 10,675,385 8,928,580
Contribution deficiency (excess)$0 $0 $0 $0 $0
Covered payroll $26,275,955 $27,681,286 $28,788,170 $31,400,311 $34,728,211
Contributions as a percentage of covered
payroll 29.81% 31.13% 32.97% 34.00% 25.71%
Valuation date:6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021
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 and 2024.
Salary increases
Investment rate of return
Retirement age
Mortality
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 and 2024, 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 and 2024, pre-retirement and post-
retirement mortality rates include generational mortality
improvement using 80% of Scale MP-2020 published by the
Societ y of Actuaries
105
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 6/30/2023
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 $7,558,887
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 27,750,115
Changes of benefit terms 167,406
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) 4,909,741
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) (21,698,219)
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 18,687,930
Total pension liability - beginning 256,002,648 266,884,738 268,679,186 278,764,324 314,037,249 327,073,740 343,645,905 359,168,480 376,140,913 404,168,106
Total pension liability - ending (a)266,884,738 268,679,186 278,764,324 314,037,249 327,073,740 343,645,905 359,168,480 376,140,913 404,168,106 422,856,036
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 $15,352,613
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 3,143,555
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) 16,694,253
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) (21,698,219)
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) (198,239)
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) 13,293,963
Plan fiduciary net position - beginning 170,937,835 195,811,152 195,205,601 192,070,665 208,630,800 220,879,754 231,869,470 240,958,874 293,624,138 269,583,647
Plan fiduciary net position - ending (b)195,811,152 195,205,601 192,070,665 208,630,800 220,879,754 231,869,470 240,958,874 293,624,138 269,583,647 282,877,610
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 $139,978,426
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% 66.90%
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 $26,580,095
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% 526.63%
Notes to Schedule:
Benefit changes.The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30
valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes in assumptions: In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019, 2020, 2021 and 2023, there were
no changes. In 2022, the accounting discount rate reduced from 7.15% to 6.90%. In 2015, amounts reported reflect an adjustment of the discount rate
form 7.5% (net of administrative expense) to 7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were
based on the 7.5% discount rate.
106
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
Actuarially determined contribution $7,191,715 $8,538,138 $8,071,060 $9,322,781 $10,164,821
Contributions in relation to the actuarially
determined contributions 7,191,715 8,538,138 8,071,060 9,322,781 10,164,821
Contribution deficiency (excess)$0 $0 $0 $0 $0
Covered payroll $16,679,857 $18,986,895 $19,563,549 $21,932,480 $22,975,254
Contributions as a percentage of covered
payroll 43.12% 44.97% 41.26% 42.51% 44.24%
Valuation date:6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016
Fiscal Year Ended June 30 2020 2021 2022 2023 2024
Actuarially determined contribution $11,401,783 $12,413,770 $13,387,919 $15,352,613 $17,693,350
Contributions in relation to the actuarially
determined contributions 11,401,783 12,413,770 13,387,919 15,352,613 17,693,350
Contribution deficiency (excess)$0 $0 $0 $0 $0
Covered payroll $24,264,339 $24,378,494 $24,325,363 $26,580,095 $28,215,841
Contributions as a percentage of covered
payroll 46.99% 50.92% 55.04% 57.76% 62.71%
Valuation date:6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021
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
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
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
107
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 6/30/2023
Total OPEB Liability
Service Cost $1,574 $1,535 $1,558 $1,604 $1,516 $1,374 $1,307
Interest 5,087 5,325 5,568 5,952 6,058 5,704 5,866
Changes in benefit terms
Differences between expected and actual experience 91 2,895 (3,332)(16,441)
Changes of assumptions (672) (1,859) 1,446 5,561
Benefit payments (2,901) (3,326) (3,378) (4,052) (4,009) (4,067) (4,749)
Net change in total OPEB liability 3,760 3,625 5,971 1,645 1,679 3,011 (8,456)
Total OPEB liability - beginning 75,240 79,000 82,625 88,596 90,241 91,920 94,931
Total OPEB liability - ending (a)$79,000 $82,625 $88,596 $90,241 $91,920 $94,931 $86,475
Plan fiduciary net position
Contributions - employer $3,703 $4,128 $4,180 $4,854 $4,810 $4,869 $5,551
Contributions - employee
Net investment income 1,803 1,566 1,402 838 7,141 (4,575) 1,953
Administrative expense (9) (37)(5) (12)(9)(9)(9)
Benefit payments (2,901) (3,326) (3,378) (4,052) (4,009) (4,067) (4,749)
Net change in plan fiduciary net position 2,596 2,331 2,199 1,628 7,933 (3,782) 2,746
Plan fiduciary net position - beginning 17,114 19,710 22,041 24,240 25,868 33,801 30,019
Plan fiduciary net position - ending (b)$19,710 $22,041 $24,240 $25,868 $33,801 $30,019 $32,765
Net OPEB liability - ending (a)-(b)$59,290 $60,584 $64,356 $64,373 $58,119 $64,912 $53,710
Plan fiduciary net position as a percentage of the total OPEB liability 24.95% 26.68% 27.36% 28.67% 36.77% 31.62% 37.89%
Covered-employee payroll $26,539 $26,986 $27,662 $28,215 $26,824 $25,079 $24,911
Net OPEB liability as a percentage of covered-employee payroll 223.41% 224.50% 232.65% 228.15% 216.67% 258.83% 215.61%
* Fiscal year 2018 was the first year of implementation.
108
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 2024
Actuarially determined contribution $6,279 $6,839 $6,995 $7,253 $7,373 $7,053 $7,058
Contributions in relation to the
actuarially determined contribution 4,128 4,180 4,854 4,810 4,869 5,551 5,216
Contribution deficiency (excess)$2,151 $2,659 $2,141 $2,443 $2,504 $1,502 $1,842
Covered-employee payroll $26,986 $27,662 $28,215 $26,824 $25,079 $24,911 $24,095
Contributions as a percentage of
covered-employee payroll 15.30% 15.11% 17.20% 17.93% 19.41% 22.28% 21.65%
* Fiscal year 2018 was the first year of implementation.
Valuation Date • June 30, 2023
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 18 years remaining for 2023/24
• 6.25% at June 30, 2023
• 6.25% at June 30, 2022
• Expected City contributions projected to keep sufficient plan assets
to pay all benefits from trust.
Inflation • 2.50% annually
Salary Increases • Aggregate - 2.75% annually
• Merit - CalPERS 2000-2019 Experience Study
Healthcare/Medical Trend • Non-Medicare - 8.50% for 2025, decreasing to an ultimate rate of
3.45% in 2076
• Medicare (Non-Kaiser) - 7.50% for 2025, decreasing to an
ultimate rate of 3.45% in 2076
• Medicare (Kaiser) - 6.25% for 2025, decreasing to an ultimate rate
of 3.45% in 2076.
Mortality, Retirement, Disability, Termination • CalPERS 2000-2019 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
109
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SUPPLEMENTARY INFORMATION
This Page Left Intentionally Blank
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.
113
General Purpose Measure W Total
ASSETS
Cash and investments $76,731,090 $17,970,662 $94,701,752
Receivables:
Accounts 13,988,476 2,752,840 16,741,316
Accrued interest 559,583 559,583
Leases 16,084,447 16,084,447
Due from other funds 200,000 200,000
Due from Conference Center
Inventory 574 574
Properties held for redevelopment 2,823,118 2,823,118
Total Assets $110,387,288 $20,723,502 $131,110,790
LIABILITIES
Accounts payable $2,156,534 $2,156,534
Accrued salaries and benefits 2,359,771 2,359,771
Other payable 480,065 480,065
Deposits 505,990 505,990
Unearned revenue 1,000,899 1,000,899
Total Liabilities 6,503,259 6,503,259
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - accounts receivable 2,874,314 2,874,314
Related to leases 15,388,754 15,388,754
Total Deferred Inflows of Resources 18,263,068 18,263,068
FUND BALANCES
Nonspendable 696,267 696,267
Restricted 2,823,118 2,823,118
Committed 3,921,810 $20,723,502 24,645,312
Assigned 7,761,552 7,761,552
Unassigned 70,418,214 70,418,214
Total Fund Balances 85,620,961 20,723,502 106,344,463
Total Liabilities and Fund Balances $110,387,288 $20,723,502 $131,110,790
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING BALANCE SHEETS
JUNE 30, 2023
114
General Purpose Measure W Total
REVENUES
Property taxes $56,352,378 $56,352,378
Sales taxes 23,228,076 $15,773,938 39,002,014
Transient occupancy taxes 14,922,567 14,922,567
Franchise Fees 5,329,885 5,329,885
Other taxes 7,097,906 7,097,906
Intergovernmental 6,497,111 6,497,111
Interest and rentals 7,054,421 7,054,421
Licenses and permits 13,978,818 13,978,818
Charges for services 12,975,439 12,975,439
Fines and forfeitures 480,957 480,957
Other 339,588 339,588
Total Revenues 148,257,146 15,773,938 164,031,084
EXPENDITURES
Current:
City Council 301,415 301,415
City Clerk 972,958 972,958
City Treasurer 170,820 170,820
City Attorney 1,719,156 1,719,156
City Manager 3,405,299 166,629 3,571,928
Finance 3,267,080 3,267,080
Non-departmental 1,451,360 1,451,360
Human Resources 2,609,554 2,609,554
Fire 36,737,241 36,737,241
Police 37,093,241 37,093,241
Public Works 10,126,863 10,126,863
Parks and Recreation 22,747,701 22,747,701
Library 7,706,106 7,706,106
Economic and Community Development 11,123,819 11,123,819
Capital Outlay 108,750 108,750
Total Expenditures 139,541,363 166,629 139,707,992
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 8,715,783 15,607,309 24,323,092
OTHER FINANCING SOURCES (USES)
Transfers in 6,342,328 6,342,328
Transfers out (1,235,536) (11,644,587) (12,880,123)
Total Other Financing Sources (Uses)5,106,792 (11,644,587) (6,537,795)
Net Change in Fund Balances 13,822,575 3,962,722 17,785,297
Fund balance - July 1 71,798,386 16,760,780 88,559,166
Fund balance - June 30 $85,620,961 $20,723,502 $106,344,463
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2024
115
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, 2024
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $47,980,000 $49,280,000 $56,352,378 $7,072,378
Sales taxes 23,351,500 21,951,500 23,228,076 1,276,576
Transient occupancy taxes 14,910,000 14,000,000 14,922,567 922,567
Franchise fees 4,600,000 4,600,000 5,329,885 729,885
Other taxes 6,950,000 6,650,000 7,097,906 447,906
Intergovernmental 3,139,827 7,765,466 6,497,111 (1,268,355)
Interest and rentals 3,940,000 4,450,000 7,054,421 2,604,421
Licenses and permits 16,962,894 12,462,894 13,978,818 1,515,924
Charges for services 9,709,257 11,569,271 12,975,439 1,406,168
Fines and forfeitures 700,000 700,000 480,957 (219,043)
Other 337,826 337,826 339,588 1,762
Amounts available for appropriation 132,581,304 133,766,957 148,257,146 14,490,189
Charges to appropriations (outflows)
City Council 269,486 269,487 301,415 (31,928)
City Clerk 1,265,011 1,123,510 972,958 150,552
City Treasurer 133,428 133,428 170,820 (37,392)
City Attorney 1,108,825 1,108,825 1,719,156 (610,331)
City Manager 4,931,075 4,480,002 3,433,233 1,046,769
Finance 3,992,281 3,901,140 3,686,978 214,162
Non-departmental 1,394,367 1,394,368 1,742,622 (348,254)
Human Resources 2,884,524 2,849,228 2,857,825 (8,597)
Fire 32,761,869 36,750,577 37,327,182 (576,605)
Police 36,838,240 37,354,911 37,093,604 261,307
Public Works 11,954,045 14,239,034 11,399,312 2,839,722
Parks and Recreation 24,675,441 25,769,325 24,953,537 815,788
Library 8,044,806 8,013,719 7,712,864 300,855
Economic and Community Development 8,499,933 15,074,057 13,822,659 1,251,398
Capital outlay 79,112 108,750 (29,638)
Total charges to appropriations 138,753,331 152,540,723 147,302,915 5,237,808
OTHER FINANCING SOURCES (USES)
Transfers in 7,581,177 8,992,379 6,342,328 (2,650,051)
Transfers out (1,400,000)(4,875,873)(1,235,536)3,640,337
Total Other Financing Sources (Uses)6,181,177 4,116,506 5,106,792 990,286
Net Change in Fund Balances $9,150 ($14,657,260)6,061,023 $20,718,283
Fund Balance - July 1 71,798,386
Adjustment to budgetary basis:
Encumbrance adjustments 7,761,552
Fund Balance - June 30 $85,620,961
(Continued)
Budgeted Amounts
General Purpose
116
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, 2024
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes
Sales taxes $16,000,000 $16,000,000 $15,773,938 ($226,062)
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 16,000,000 16,000,000 15,773,938 (226,062)
Charges to appropriations (outflows)
City Council
City Clerk
City Treasurer
City Attorney
City Manager 475,635 475,635 166,629 309,006
Finance
Non-departmental
Human Resources
Fire
Police
Public Works
Parks and Recreation
Library
Economic and Community Development
Capital outlay
Total charges to appropriations 475,635 475,635 166,629 309,006
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (8,286,750) (21,484,108) (11,644,587)9,839,521
Total Other Financing Sources (Uses)(8,286,750) (21,484,108) (11,644,587)9,839,521
Net Change in Fund Balances $7,237,615 ($5,959,743)3,962,722 $9,922,465
Fund Balance - July 1 16,760,780
Adjustment to budgetary basis:
Encumbrance adjustments
Fund Balance - June 30 $20,723,502
(Continued)
Budgeted Amounts
Measure W
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, 2024
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $47,980,000 $49,280,000 $56,352,378 $7,072,378
Sales taxes 39,351,500 37,951,500 39,002,014 1,050,514
Transient occupancy taxes 14,910,000 14,000,000 14,922,567 922,567
Franchise fees 4,600,000 4,600,000 5,329,885 729,885
Other taxes 6,950,000 6,650,000 7,097,906 447,906
Intergovernmental 3,139,827 7,765,466 6,497,111 (1,268,355)
Interest and rentals 3,940,000 4,450,000 7,054,421 2,604,421
Licenses and permits 16,962,894 12,462,894 13,978,818 1,515,924
Charges for services 9,709,257 11,569,271 12,975,439 1,406,168
Fines and forfeitures 700,000 700,000 480,957 (219,043)
Other 337,826 337,826 339,588 1,762
Amounts available for appropriation 148,581,304 149,766,957 164,031,084 14,264,127
Charges to appropriations (outflows)
City Council 269,486 269,487 301,415 (31,928)
City Clerk 1,265,011 1,123,510 972,958 150,552
City Treasurer 133,428 133,428 170,820 (37,392)
City Attorney 1,108,825 1,108,825 1,719,156 (610,331)
City Manager 5,406,710 4,955,637 3,599,862 1,355,775
Finance 3,992,281 3,901,140 3,686,978 214,162
Non-departmental 1,394,367 1,394,368 1,742,622 (348,254)
Human Resources 2,884,524 2,849,228 2,857,825 (8,597)
Fire 32,761,869 36,750,577 37,327,182 (576,605)
Police 36,838,240 37,354,911 37,093,604 261,307
Public Works 11,954,045 14,239,034 11,399,312 2,839,722
Parks and Recreation 24,675,441 25,769,325 24,953,537 815,788
Library 8,044,806 8,013,719 7,712,864 300,855
Economic and Community Development 8,499,933 15,074,057 13,822,659 1,251,398
Capital outlay 79,112 108,750 (29,638)
Total charges to appropriations 139,228,966 153,016,358 147,469,544 5,546,814
OTHER FINANCING SOURCES (USES)
Transfers in 7,581,177 8,992,379 6,342,328 (2,650,051)
Transfers out (9,686,750) (26,359,981) (12,880,123) 13,479,858
Total Other Financing Sources (Uses)(2,105,573) (17,367,602) (6,537,795) 10,829,807
Net Change in Fund Balances $7,246,765 ($20,617,003) 10,023,745 $30,640,748
Fund Balance - July 1 88,559,166
Adjustment to budgetary basis:
Encumbrance adjustments 7,761,552
Fund Balance - June 30 $106,344,463
Budgeted Amounts
Total
118
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.
119
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.
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 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.
120
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Traffic Impact Fees Capital Projects Fund – These fees are to provide new developments share
of new and expanded roadway and intersection improvements to serve the East of Highway 101
area and other areas within the City.
Child Care Impact Fees Capital Projects Fund – These citywide fees provide new
development’s share of new and expanded childcare facilities to serve the City.
Capital 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.
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.
121
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2024
SPECIAL REVENUE FUNDS
Community
Developer Development Maintenance Transportation
Gas Tax Contributions Block Grant Districts Sales Tax
ASSETS
Cash and investments $691,071 $9,943,147 $4,946,013 $7,155,381
Receivables:
Accounts 157,009 1,249,158 $1,239 35,096 157,910
Accrued interest 4,466 66,287 39,461
Loans 660,032
Leases
Restricted cash and investments 99,246
Property held for redevelopment
Total Assets $852,546 $11,258,592 $760,517 $4,981,109 $7,352,752
LIABILITIES
Liabilities:
Accounts payable $61,702 $8,015 $6,970
Other payable 22,794 494,252
Deposits 3,339,692
Unearned revenue
Due to other funds 100,000
Total Liabilities 3,424,188 602,267 6,970
DEFERRED INFLOWS OF RESOURCES
Related to leases
Fund Balances:
Restricted $852,546 7,834,404 158,250 4,974,139 $7,352,752
Unrestricted
Total Fund Balances 852,546 7,834,404 158,250 4,974,139 7,352,752
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $852,546 $11,258,592 $760,517 $4,981,109 $7,352,752
122
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
$833,212 $828 $16,559,092 $557,384 $920,651 $2,885,951 $4,298,064
38,111 84 4,428 137,967
271 121,888 3,896 5,588 17,498 23,580
13,951
$871,323 $1,099 $16,680,980 $575,315 $930,667 $2,903,449 $4,459,611
$18,433 $26,443 $10,940
33,717
52,150 26,443 10,940
819,173 $1,099 16,654,537 564,375 $930,667 $2,903,449 $4,459,611
819,173 1,099 16,654,537 564,375 930,667 2,903,449 4,459,611
$871,323 $1,099 $16,680,980 $575,315 $930,667 $2,903,449 $4,459,611
(Continued)
123
SPECIAL REVENUE FUNDS
Low and
SMC Measure W Oyster Point Moderate American
1/2 Cent Public Arts CFD Income Rescue
Sales Tax In-Lieu Fee Special Tax B Housing Assets Plan Act
ASSETS
Cash and investments $2,292,264 $459,650 $250,132 $2,450,159 $1,278,941
Receivables:
Accounts 81,725 54,613
Accrued interest 15,830 2,815 15,002
Loans 459,326
Leases 1,165,110
Restricted cash and investments
Property held for redevelopment
Total Assets $2,389,819 $462,465 $250,132 $4,144,210 $1,278,941
LIABILITIES
Liabilities:
Accounts payable $19,272 $10,717
Other payable
Deposits
Unearned revenue $1,278,941
Due to other funds
Total Liabilities 19,272 10,717 1,278,941
DEFERRED INFLOWS OF RESOURCES
Related to leases 1,124,024
Fund Balances:
Restricted $2,389,819 $462,465 230,860 3,009,469
Unrestricted
Total Fund Balances 2,389,819 462,465 230,860 3,009,469
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $2,389,819 $462,465 $250,132 $4,144,210 $1,278,941
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2024
124
CAPITAL PROJECTS FUNDS
Public Oyster Point Sewer Oyster Point Park Land Park Bicycle and
Safety Improvement Capacity Development Acquisition Construction Pedestrian
Impact Fee Impact Fees Charges Impact Fees Fee Fee Impact Fee
$2,285,883 $53,367 $13,528,847 $135,678 $3,100,040 $11,953,165 $251,713
14,280 2,685 78,800 19,984 69,439 1,463
$2,300,163 $56,052 $13,607,647 $135,678 $3,120,024 $12,022,604 $253,176
$57,457
$100,000
57,457 100,000
$2,242,706 $56,052 $13,607,647 $3,120,024 $12,022,604 $253,176
35,678
2,242,706 56,052 13,607,647 35,678 3,120,024 12,022,604 253,176
$2,300,163 $56,052 $13,607,647 $135,678 $3,120,024 $12,022,604 $253,176
(Continued)
125
CAPITAL PROJECTS FUNDS
Commercial East of 101
Linkage Library Sewer Traffic Child Care
Impact Fee Impact Fee Impact Fees Impact Fees Impact Fees
ASSETS
Cash and investments $14,252,877 $43,759 $6,327,880 $29,651,541 $15,065,467
Receivables:
Accounts 35,386
Accrued interest 109,816 179 35,190 171,766 91,482
Loans
Leases
Restricted cash and investments
Property held for redevelopment 729,031
Total Assets $15,127,110 $43,938 $6,363,070 $29,823,307 $15,156,949
LIABILITIES
Liabilities:
Accounts payable $19,402
Other payable
Deposits 16,314
Unearned revenue
Due to other funds
Total Liabilities 35,716
DEFERRED INFLOWS OF RESOURCES
Related to leases
Fund Balances:
Restricted 15,091,394 $43,938 $6,363,070 $29,823,307 $15,156,949
Unrestricted
Total Fund Balances 15,091,394 43,938 6,363,070 29,823,307 15,156,949
Total Liabilities, Deferred Inflows
of Resources and Fund Balances $15,127,110 $43,938 $6,363,070 $29,823,307 $15,156,949
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2024
126
CAPITAL PROJECTS DEBT SERVICE
FUNDS FUND
Total
Capital Capital Nonmajor
Improvement Improvement Debt Governmental
Police Station Civic Campus Service Funds
$990,260 $153,162,417
6,510 1,959,236
911,666
1,133,309
1,165,110
$110,261 2,498,105 2,707,612
729,031
$110,261 $3,494,875 $161,768,381
$479,255 $718,606
672,460 1,223,223
3,356,006
1,278,941
200,000
1,151,715 6,776,776
1,124,024
$110,261 $2,343,160 153,831,903
35,678
110,261 2,343,160 153,867,581
$110,261 $3,494,875 $161,768,381
127
SPECIAL REVENUE FUNDS
Community
Developer Development Maintenance Transportation
Gas Tax Contributions Block Grant Districts Sales Tax
REVENUES
Property taxes $2,430,567
Sales taxes
Other taxes $2,154,798
Intergovernmental $2,043,297 $240,767 48,975
Interest and rentals 29,928 $430,363 13,872 263,189
Charges for services 594,146
Other
Total Revenues 2,073,225 1,024,509 254,639 2,430,567 2,466,962
EXPENDITURES
Current:
Fire
Police
Public works
Parks and recreation 2,442,487
Economic and community development 449,109 140,494
Non-departmental
Other
Capital outlay
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 449,109 140,494 2,442,487
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,073,225 575,400 114,145 (11,920) 2,466,962
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (1,719,093) (1,570,149) (37,910) (793,183)
Total Other Financing Sources (Uses) (1,719,093) (1,570,149) (37,910) (793,183)
Net Change in Fund Balances 354,132 (994,749) 114,145 (49,830) 1,673,779
Fund balance - July 1, as previously reported 498,414 8,829,153 44,105 5,023,969 5,678,973
Adjustment - changes from major fund
to nonmajor fund
Fund balances (deficits) - July 1, as adjusted 498,414 8,829,153 44,105 5,023,969 5,678,973
Fund balance - June 30 $852,546 $7,834,404 $158,250 $4,974,139 $7,352,752
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2024
128
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
$186,169
$1,676,727
1,860 $783,233 25,450 $37,042 $115,379 157,906
$228,666 62,813
1,412,923 111,652
228,666 188,029 2,258,969 25,450 148,694 115,379 1,834,633
28,029
336,887
22,000
774,354 129,657
336,887 28,029 774,354 129,657 22,000
(108,221) 160,000 1,484,615 (104,207) 126,694 115,379 1,834,633
(53,308) (160,000) (4,765,429) (469,146)
(53,308) (160,000) (4,765,429) (469,146)
(161,529) (3,280,814) (104,207) 126,694 115,379 1,365,487
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
$819,173 $1,099 $16,654,537 $564,375 $930,667 $2,903,449 $4,459,611
(Continued)
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, 2024
SPECIAL REVENUE FUNDS
Low and
SMC Measure W Oyster Point Moderate American
1/2 Cent Public Arts CFD Income Rescue
Sales Tax In-Lieu Fee Special Tax B Housing Assets Plan Act
REVENUES
Property taxes
Sales taxes $1,035,179
Other taxes $199,016
Intergovernmental $4,988,611
Interest and rentals 105,507 $19,579 $301,532
Charges for services 500,000
Other
Total Revenues 1,140,686 519,579 199,016 301,532 4,988,611
EXPENDITURES
Current:
Fire
Police
Public works
Parks and recreation
Economic and community development 234,326
Non-departmental
Other 134,910
Capital outlay
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 134,910 234,326
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,140,686 519,579 64,106 67,206 4,988,611
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (840,764) (200,000) (4,988,611)
Total Other Financing Sources (Uses) (840,764) (200,000) (4,988,611)
Net Change in Fund Balances 299,922 319,579 64,106 67,206
Fund balance - July 1, as previously reported 2,089,897 142,886 166,754 2,942,263
Adjustment - changes from major fund
to nonmajor fund
Fund balances (deficits) - July 1, as adjusted 2,089,897 142,886 166,754 2,942,263
Fund balance - June 30 $2,389,819 $462,465 $230,860 $3,009,469
130
CAPITAL PROJECTS FUNDS
Public Oyster Point Sewer Oyster Point Park Land Park Bicycle and
Safety Improvement Capacity Development Acquisition Construction Pedestrian
Impact Fee Impact Fees Charges Impact Fees Fee Fee Impact Fee
$8,478,182
$94,966 $19,086 $522,836 $131,364 $461,108 $9,672
479,709 884,195 1,453,256 49,152 6,250 2,158,780 16,550
574,675 903,281 1,976,092 8,527,334 137,614 2,619,888 26,222
84,879
3,652 8,554,790
884,000
84,879 884,000 3,652 8,554,790
489,796 19,281 1,972,440 (27,456) 137,614 2,619,888 26,222
(330,892)(313,453) (645,532)
(330,892)(313,453) (645,532)
158,904 19,281 1,972,440 (27,456) (175,839) 1,974,356 26,222
2,083,802 36,771 11,635,207 63,134 3,295,863 10,048,248 226,954
2,083,802 36,771 11,635,207 63,134 3,295,863 10,048,248 226,954
$2,242,706 $56,052 $13,607,647 $35,678 $3,120,024 $12,022,604 $253,176
(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, 2024
CAPITAL PROJECTS FUNDS
Commercial East of 101
Linkage Library Sewer Traffic Child Care
Impact Fee Impact Fee Impact Fees Impact Fees Impact Fees
REVENUES
Property taxes
Sales taxes
Other taxes
Intergovernmental
Interest and rentals $748,608 $1,268 $233,730 $1,151,395 $604,159
Charges for services 6,616,930 38,361 861,755 10,889,440 485,015
Other
Total Revenues 7,365,538 39,629 1,095,485 12,040,835 1,089,174
EXPENDITURES
Current:
Fire
Police
Public works 3,652
Parks and recreation
Economic and community development
Non-departmental 3,652 3,652
Other 439,938
Capital outlay 6,862,592
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 7,302,530 3,652 3,652 3,652
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 63,008 39,629 1,091,833 12,037,183 1,085,522
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (4,327) (3,627,347) (36,117)
Total Other Financing Sources (Uses) (4,327) (3,627,347) (36,117)
Net Change in Fund Balances 63,008 39,629 1,087,506 8,409,836 1,049,405
Fund balance - July 1, as previously reported 15,028,386 4,309 5,275,564 21,413,471 14,107,544
Adjustment - changes from major fund
to nonmajor fund
Fund balances (deficits) - July 1, as adjusted 15,028,386 4,309 5,275,564 21,413,471 14,107,544
Fund balance - June 30 $15,091,394 $43,938 $6,363,070 $29,823,307 $15,156,949
132
CAPITAL PROJECTS DEBT SERVICE
FUNDS FUND
Total
Capital Capital Nonmajor
Improvement Improvement Debt Governmental
Police Station Civic Campus Service Funds
$2,430,567
1,035,179
2,539,983
$1,796,924 19,273,483
$5,257 286,849 6,555,138
25,325,018
1,524,575
5,257 2,083,773 58,683,943
84,879
226,780 254,809
13,406,887 22,305,868
2,442,487
823,929
29,304
1,478,859
6,862,592
$3,320,000 4,204,000
8,205,338 8,205,338
226,780 13,406,887 11,525,338 46,692,065
(221,523) (11,323,114) (11,525,338) 11,991,878
7,962,479 11,525,338 19,487,817
(20,555,261)
7,962,479 11,525,338 (1,067,444)
(221,523) (3,360,635) 10,924,434
136,907,568
331,784 5,703,795 6,035,579
331,784 5,703,795 142,943,147
$110,261 $2,343,160 $153,867,581
133
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, 2024
GAS TAX
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Other taxes
Intergovernmental $2,050,003 $2,043,297 ($6,706)
Interest and rentals 15,000 29,928 14,928 $430,363 $430,363
Charges for services 594,146 594,146
Other $1,593,682 (1,593,682)
Total Revenues 2,065,003 2,073,225 8,222 1,593,682 1,024,509 (569,173)
EXPENDITURES
Current:
Police
Public works
Parks and recreation
Economic and community development 831,239 449,109 382,130
Non-departmental
Other
Capital outlay
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 831,239 449,109 382,130
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,065,003 2,073,225 8,222 762,443 575,400 (187,043)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (2,428,016) (1,719,093) 708,923 (3,468,391) (1,570,149) 1,898,242
Total Other Financing Sources (Uses) (2,428,016) (1,719,093) 708,923 (3,468,391) (1,570,149) 1,898,242
NET CHANGE IN FUND BALANCES ($363,013) 354,132 $717,145 ($2,705,948) (994,749) $1,711,199
Adjustment to budgetary basis:
Encumbrance adjustments
Fund balance - July 1 498,414 8,829,153
Fund balance - June 30 $852,546 $7,834,404
CITY OF SOUTH SAN FRANCISCO
DEVELOPER CONTRIBUTIONS
134
MAINTENANCE DISTRICTS
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$2,154,121 $2,430,567 $276,446
$2,192,837 $2,154,798 ($38,039)
$556,019 $240,767 ($315,252)48,975 48,975
5,000 13,872 8,872 25,000 263,189 238,189
200,000 (200,000)
761,019 254,639 (506,380) 2,154,121 2,430,567 276,446 2,217,837 2,466,962 249,125
2,460,055 2,442,487 17,568
827,408 391,786 435,622
827,408 391,786 435,622 2,460,055 2,442,487 17,568
(66,389) (137,147) (70,758) (305,934) (11,920) 294,014 2,217,837 2,466,962 249,125
(500,000) (37,910) 462,090 (6,115,757) (793,183) 5,322,574
(500,000) (37,910) 462,090 (6,115,757) (793,183) 5,322,574
($66,389) (137,147) ($70,758) ($805,934) (49,830) $756,104 ($3,897,920) 1,673,779 $5,571,699
251,292
44,105 5,023,969 5,678,973
$158,250 $4,974,139 $7,352,752
(Continued)
BLOCK GRANT
COMMUNITY DEVELOPMENT
TRANSPORTATION SALES TAX
135
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, 2024
SOLID WASTE REDUCTION
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Other taxes $160,000 $186,169 $26,169
Intergovernmental $17,000 ($17,000)
Interest and rentals 1,860 1,860
Charges for services 220,080 $228,666 $8,586
Other
Total Revenues 237,080 228,666 (8,414) 160,000 188,029 28,029
EXPENDITURES
Current:
Police 28,029 (28,029)
Public works 689,763 336,887 352,876
Parks and recreation
Economic and community development 292,129 (292,129)
Non-departmental
Other
Capital outlay
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 689,763 629,016 60,747 28,029 (28,029)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (452,683) (400,350) 52,333 160,000 160,000
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (53,308) (53,308)(160,000) (160,000)
Total Other Financing Sources (Uses)(53,308) (53,308)(160,000) (160,000)
NET CHANGE IN FUND BALANCES ($505,991) (453,658) $52,333
Adjustment to budgetary basis:
Encumbrance adjustments 292,129
Fund balance - July 1 980,702 1,099
Fund balance - June 30 $819,173 $1,099
CITY OF SOUTH SAN FRANCISCO
ENFORCEMENT SERVICES
SUPPLEMENTAL LAW
136
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)
$783,233 $783,233 $25,450 $25,450 $5,000 $37,042 $32,042
62,813 62,813
$5,473 1,412,923 1,407,450 125,000 111,652 (13,348)
5,473 2,258,969 2,253,496 25,450 25,450 130,000 148,694 18,694
55,000 22,000 33,000
774,354 (774,354) $505,005 151,957 353,048
774,354 (774,354) 505,005 151,957 353,048 55,000 22,000 33,000
5,473 1,484,615 1,479,142 (505,005) (126,507) 378,498 75,000 126,694 51,694
(14,893,637) (4,765,429) 10,128,208 (25,000)25,000
(14,893,637) (4,765,429) 10,128,208 (25,000)25,000
($14,888,164) (3,280,814) $11,607,350 ($505,005) (126,507) $378,498 $50,000 126,694 $76,694
22,300
19,935,351 668,582 803,973
$16,654,537 $564,375 $930,667
(Continued)
CITY PROGRAMS
137
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, 2024
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes $974,258 $1,035,179 $60,921
Other taxes
Intergovernmental $1,606,044 $1,676,727 $70,683
Interest and rentals 157,906 157,906 105,507 105,507
Charges for services
Other
Total Revenues 1,606,044 1,834,633 228,589 974,258 1,140,686 166,428
EXPENDITURES
Current:
Police
Public works
Parks and recreation
Economic and community development
Non-departmental
Other
Capital outlay
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,606,044 1,834,633 228,589 974,258 1,140,686 166,428
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (5,177,793) (469,146) 4,708,647 (1,891,815) (840,764) 1,051,051
Total Other Financing Sources (Uses) (5,177,793) (469,146) 4,708,647 (1,891,815) (840,764) 1,051,051
NET CHANGE IN FUND BALANCES ($3,571,749) 1,365,487 $4,937,236 ($917,557) 299,922 $1,217,479
Adjustment to budgetary basis:
Encumbrance adjustments
Fund balance - July 1 3,094,124 2,089,897
Fund balance - June 30 $4,459,611 $2,389,819
CITY OF SOUTH SAN FRANCISCO
SMC MEASURE W
1/2 CENT SALES TAX
ROAD MAINTENANCE
AND REHABILITATION
138
IN-LIEU FEE SPECIAL TAX B HOUSING ASSETS
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$200,000 $199,016 ($984)
$19,579 $19,579 $167,000 $301,532 $134,532
500,000 500,000
15,000 (15,000)
519,579 519,579 200,000 199,016 (984) 182,000 301,532 119,532
538,354 239,395 298,959
$200,000 134,910 65,090
$120,000 120,000
120,000 120,000 200,000 134,910 65,090 538,354 239,395 298,959
(120,000) 519,579 639,579 64,106 64,106 (356,354) 62,137 418,491
(200,000) (200,000)
(200,000) (200,000)
($320,000) 319,579 $639,579 64,106 $64,106 ($356,354) 62,137 $418,491
5,069
142,886 166,754 2,942,263
$462,465 $230,860 $3,009,469
(Continued)
OYSTER POINT CFD LOW AND MODERATE INCOMEPUBLIC ARTS
139
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, 2024
PLAN ACT
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Other taxes
Intergovernmental $4,987,373 $4,988,611 $1,238
Interest and rentals
Charges for services
Other
Total Revenues 4,987,373 4,988,611 1,238
EXPENDITURES
Current:
Police
Public works
Parks and recreation
Economic and community development
Non-departmental
Other
Capital outlay
Debt service:
Principal repayments $3,320,000 $3,320,000
Interest and fiscal charges 8,205,338 8,205,338
Total Expenditures 11,525,338 11,525,338
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 4,987,373 4,988,611 1,238 (11,525,338) (11,525,338)
OTHER FINANCING SOURCES (USES)
Transfers in 11,525,338 11,525,338
Transfers out (6,417,952) (4,988,611) 1,429,341
Total Other Financing Sources (Uses) (6,417,952) (4,988,611) 1,429,341 11,525,338 11,525,338
NET CHANGE IN FUND BALANCES ($1,430,579)$1,430,579
Adjustment to budgetary basis:
Encumbrance adjustments
Fund balance - July 1
Fund balance - June 30
CITY OF SOUTH SAN FRANCISCO
DEBT SERVICE FUND
AMERICAN RESCUE
140
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.
141
CITY OF SOUTH SAN FRANCISCO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2024
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
ASSETS
Current assets:
Cash and investments $3,333,680 $20,364,607 $12,249,279 $7,182,208 $43,129,774
Receivables:
Accounts 290,558 290,558
Accrued interest 19,167 113,880 26,876 74,797 234,720
Deposit 216,000 93,790 309,790
Prepaid items 1,296,700 1,296,700
Total current assets 3,352,847 20,985,045 13,666,645 7,257,005 45,261,542
Noncurrent assets:
Capital assets:
Depreciable, net of accumulated depreciation 5,509,520 5,509,520
Total non-current assets 5,509,520 5,509,520
Total Assets 3,352,847 20,985,045 13,666,645 12,766,525 50,771,062
LIABILITIES
Current liabilities:
Accounts payable 377,028 321,012 265,947 963,987
Other payable 31,450 32,616 64,066
Current portion of accrued insurance loss 3,802,759 3,802,759
Current portion of compensated absences 108,066 1,170,269 1,278,335
Current portion of long-term debt
Total current liabilities 516,544 4,156,387 1,436,216 6,109,147
Noncurrent liabilities:
Accrued insurance loss 14,434,000 14,434,000
Compensated absences obligation 228,392 815,664 1,044,056
Total noncurrent liabilities 228,392 14,434,000 815,664 15,478,056
Total Liabilities 744,936 18,590,387 2,251,880 21,587,203
NET POSITION:
Net investment in capital assets 5,509,520 5,509,520
Unrestricted 2,607,911 2,394,658 11,414,765 7,257,005 23,674,339
Total Net Position $2,607,911 $2,394,658 $11,414,765 $12,766,525 $29,183,859
142
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
OPERATING REVENUES
Charges for services $6,643,230 $6,912,847 $18,845,552 $2,474,579 $34,876,208
Total Operating Revenues 6,643,230 6,912,847 18,845,552 2,474,579 34,876,208
OPERATING EXPENSES
Personnel expenses 2,795,657 757,995 17,449,934 21,003,586
Professional services 902,459 127,496 1,029,955
Program supplies 2,345,286 80 1,000 2,346,366
Insurance 10,867 3,525,933 3,536,800
Self-insurance and claims 3,274,637 3,274,637
Repair and maintenance 708,136 345,561 1,053,697
Utilities 141,932 141,932
Depreciation 1,266,646 1,266,646
Other 23,285 626,149 649,434
Total Operating Expenses 6,927,622 7,686,141 18,077,083 1,612,207 34,303,053
Operating Income (Loss)(284,392) (773,294) 768,469 862,372 573,155
NONOPERATING
REVENUES (EXPENSES)
Interest income 126,373 755,022 386,378 281,073 1,548,846
Interest expense
Gain from disposal of capital assets 48,524 48,524
Other 149,122 18,271 167,393
Total Nonoperating
Revenues (Expenses)275,495 773,293 386,378 329,597 1,764,763
Net income (loss) before transfers (8,897)(1) 1,154,847 1,191,969 2,337,918
TRANSFERS
Transfers in 250,000 250,000
Change in Net Position (8,897)(1) 1,404,847 1,191,969 2,587,918
Net Position - July 1 2,616,808 2,394,659 10,009,918 11,574,556 26,595,941
Net Position - June 30 $2,607,911 $2,394,658 $11,414,765 $12,766,525 $29,183,859
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2024
CITY OF SOUTH SAN FRANCISCO
143
CITY OF SOUTH SAN FRANCISCO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2024
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from interfund service provided $6,792,352 $6,998,261 $18,944,167 $2,474,579 $35,209,359
Cash payments to suppliers for goods and services (4,131,965) (3,620,893)(345,561) (8,098,419)
Cash payments to employees for services (2,470,050) (581,765) (17,838,711)(20,890,526)
Cash payments for judgments and claims (2,321,940)(2,321,940)
Net Cash Provided by Operating Activities 190,337 473,663 1,105,456 2,129,018 3,898,474
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 250,000 250,000
Net Cash Provided by Noncapital Financing Activities 250,000 250,000
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition of capital assets, net (1,447,666) (1,447,666)
Proceeds from the sale of capital assets 48,524 48,524
Net Cash Used in Capital and Related Financing Activities (1,399,142) (1,399,142)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 80,913 500,661 280,284 150,137 1,011,995
Changes in fair values of investments 39,788 236,391 122,684 88,366 487,229
Net Cash Provided by Investing Activities 120,701 737,052 402,968 238,503 1,499,224
Net Increase (Decrease) in cash and cash equivalents 311,038 1,210,715 1,758,424 968,379 4,248,556
Cash and cash equivalents, beginning 3,022,642 19,153,892 10,490,855 6,213,829 38,881,218
Cash and cash equivalents, ending $3,333,680 $20,364,607 $12,249,279 $7,182,208 $43,129,774
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)($284,392) ($773,294) $768,469 $862,372 $573,155
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation 1,266,646 1,266,646
Other non-operating revenue (expenses)149,122 18,271 167,393
Net change in assets and liabilities:
Accounts receivable 67,143 98,615 165,758
Deposit
Prepaid items 61,584 61,584
Accounts payable 260,832 176,230 195,393 632,455
Other payable 32,616 (148,275)(115,659)
Accrued insurance losses 952,697 952,697
Compensated absence obligations 64,775 129,670 194,445
Net Cash Provided by (Used in) Operating Activities $190,337 $473,663 $1,105,456 $2,129,018 $3,898,474
144
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.
145
CITY OF SOUTH SAN FRANCISCO
CUSTODIAL FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2024
SSF Employee
Deferred Comp
Trust Oyster Point
Oversight CFD TOTAL
ASSETS
Cash and investments $129,172 $129,172
Interest receivable 722 $344 1,066
Restricted cash and investments 2,447,652 2,447,652
Total Assets 129,894 2,447,996 2,577,890
NET POSITION
Restricted for others $129,894 $129,894
Restricted for bondholders $2,447,996 2,447,996
Total Net Position $129,894 $2,447,996 $2,577,890
146
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 $53,635 $53,635
Property taxes $1,036,213 1,036,213
Interest and rentals 4,815 117,797 122,612
Total Additions 58,450 1,154,010 1,212,460
DEDUCTIONS
Professional services 24,801 24,801
Payments to bondholders 962,493 962,493
Total Deductions 24,801 962,493 987,294
Change in net position 33,649 191,517 225,166
NET POSITION
Beginning of the year 96,245 2,256,479 2,352,724
End of the year $129,894 $2,447,996 $2,577,890
147
This Page Left Intentionally Blank
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
149
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.
150
2015 2016 2017 2018 2019
Governmental activities
Net investment in capital assets $230,517,037 $231,142,079 $254,344,554 $254,570,044 $271,349,364
Restricted 49,311,828 52,406,602 54,478,093 96,316,988 117,752,590
Unrestricted (134,389,522) (120,119,617) (86,808,434) (129,833,581) (114,028,420)
Total governmental activities net position $145,439,343 $163,429,064 $222,014,213 $221,053,451 $275,073,534
Business-type activities
Net investment in capital assets $78,598,277 $83,930,073 $86,167,704 $90,097,907 $100,463,280
Restricted
Unrestricted 4,196,654 6,243,225 7,199,925 3,227,395 44,966
Total business-type activities net position $82,794,931 $90,173,298 $93,367,629 $93,325,302 $100,508,246
Primary government
Net investment in capital assets $309,115,314 $315,072,152 $340,512,258 $344,667,951 $371,812,644
Restricted 49,311,828 52,406,602 54,478,093 96,316,988 117,752,590
Unrestricted (130,192,868) (113,876,392) (79,608,509) (126,606,186) (113,983,454)
Total primary government net position $228,234,274 $253,602,362 $315,381,842 $314,378,753 $375,581,780
2020 2021 2022 2023 2024
Governmental activities
Net investment in capital assets $296,243,640 $316,169,957 $384,765,508 $390,845,692 $413,101,538
Restricted 138,701,991 160,119,056 139,059,768 130,124,884 159,707,043
Unrestricted (130,288,161) (144,181,245) (126,989,026) (86,635,416) (79,222,293)
Total governmental activities net position $304,657,470 $332,107,768 $396,836,250 $434,335,160 $493,586,288
Business-type activities
Net investment in capital assets $111,968,328 $123,628,942 $133,598,554 $132,756,230 $132,151,837
Restricted
Unrestricted 2,040,842 7,208,752 4,271,663 10,098,654 14,861,234
Total business-type activities net position $114,009,170 $130,837,694 $137,870,217 $142,854,884 $147,013,071
Primary government
Net investment in capital assets $408,211,968 $439,798,899 $518,364,062 $523,601,922 $545,253,375
Restricted 138,701,991 160,119,056 139,059,768 130,124,884 159,707,043
Unrestricted (128,247,319) (136,972,493) (122,717,363) (76,536,762) (64,361,059)
Total primary government net position $418,666,640 $462,945,462 $534,706,467 $577,190,044 $640,599,359
Source: City of South San Francisco, Department of Finance
(a) The City adjusted certain beginning balances during fiscal years 2014-15 and 2017-18 due to the implementation of GASB
Statements 68 and 75. Financial data shown for the proceeding year were not adjusted for the presentation.
CITY OF SOUTH SAN FRANCISCO
(accrual basis of accounting)
Last Ten Fiscal Years (a)
Net Position by Component
($200)
($100)
$0
$100
$200
$300
$400
$500
$600
$700
$800
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Millions
Unrestricted
Restricted
Invested in Capital Assets Net of
Related Debt
151
CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2015 2016 2017 2018
Expenses
Governmental Activities:
General Government $8,421,857 $9,044,518 $10,253,403 $12,506,188
Fire Department 22,005,883 22,488,964 25,750,126 30,352,387
Police Department 23,910,436 23,158,168 25,838,242 30,732,288
Public Works 14,493,039 11,916,572 12,396,998 18,379,278
Park, Recreation and Maintenance Services 12,383,880 12,901,657 15,217,677 17,162,377
Library 4,300,885 4,442,577 5,184,282 5,910,406
Economic and Community Development 5,928,316 7,603,275 8,927,162 10,094,626
Interest on Long -Term Debt
Total Governmental Activities Expenses 91,444,296 91,555,731 103,567,890 125,137,550
Business-Type Activities:
Sewer Rental 23,969,579 18,273,580 22,661,768 24,397,607
Parking District 503,014 894,769 940,181 1,202,319
Storm Water 1,234,616 1,289,465 1,333,409 1,026,948
Total Business-Type Activities Expenses 25,707,209 20,457,814 24,935,358 26,626,874
Total Primary Government Expenses $117,151,505 $112,013,545 $128,503,248 $151,764,424
Program Revenues
Governmental Activities:
Charges for Services:
General Government $3,946,302 $4,194,563 $2,225,049 $1,966,755
Fire Department 3,520,275 3,450,524 4,242,940 6,327,921
Police Department 2,370,736 2,076,837 2,146,909 2,230,824
Public Works 5,071,729 10,361,525 10,869,608 24,727,897
Park, Recreation and Maintenance Services 3,708,272 3,744,137 3,756,369 4,489,665
Library 120,850 164,271 96,987 102,124
Economic and Community Development 5,337,177 6,131,463 3,911,597 13,052,441
Operating Grants and Contributions 5,753,845 5,581,492 4,533,539 5,827,149
Capital Grants and Contributions 632,735 1,147,337 577,995 2,515,868
Total Government Activities Program Revenues 30,461,921 36,852,149 32,360,993 61,240,644
Business-Type Activities:
Charges for Services:
Sewer Rental 19,798,033 19,569,341 19,897,769 22,417,156
Parking District 819,051 843,199 916,687 1,084,472
Storm Water 407,640 412,105 418,840 656,315
Operating Grants and Contributions 6,242,687 5,802,788 5,763,645 5,834,455
Capital Grants and Contributions
Total Business-Type Activities Program Revenue 27,267,411 26,627,433 26,996,941 29,992,398
Total Primary Government Program Revenues $57,729,332 $63,479,582 $59,357,934 $91,233,042
Net (Expense)/Revenue
Governmental Activities ($60,982,375) ($54,703,582) ($71,206,897) ($63,896,906)
Business-Type Activities 1,560,202 6,169,619 2,061,583 3,365,524
Total Primary Government Net Expense ($59,422,173) ($48,533,963) ($69,145,314) ($60,531,382)
152
2019 2020 2021 2022 2023 2024
$12,139,671 $15,378,452 $19,611,586 $20,793,108 $24,977,978 $16,789,551
31,986,738 34,442,874 34,492,838 28,530,628 36,852,200 39,521,911
32,994,122 36,095,698 33,376,962 35,635,007 37,885,983 40,395,860
20,425,958 17,737,243 7,567,745 7,544,142 21,880,934 28,825,661
17,962,298 19,620,848 17,159,696 19,482,582 23,539,372 26,613,851
6,241,093 6,728,102 6,274,811 6,060,920 6,639,706 8,022,064
10,557,116 9,837,938 11,728,168 12,034,671 12,923,609 12,148,452
512,376 2,200,344 4,686,930 6,891,224 6,810,509
132,306,996 140,353,531 132,412,150 134,767,988 171,591,006 179,127,859
25,719,049 26,213,885 26,644,459 26,246,647 30,654,615 32,039,611
896,994 1,116,840 1,338,092 1,170,305 1,272,157 1,246,726
1,188,182 1,206,694 922,057 1,309,360 1,460,610 4,132,098
27,804,225 28,537,419 28,904,608 28,726,312 33,387,382 37,418,435
$160,111,221 $168,890,950 $161,316,758 $163,494,300 $204,978,388 $216,546,294
$7,930,983 $5,217,199 $6,968,307 $5,413,298 $9,249,087 $9,018,870
6,052,804 6,073,247 5,952,872 7,857,602 9,231,756 9,241,357
2,351,491 2,092,791 1,642,726 2,878,353 2,299,209 2,064,168
27,811,701 23,355,636 24,859,635 17,734,041 9,071,365 18,318,463
4,293,474 2,872,786 1,165,630 3,058,826 3,927,532 4,247,632
105,466 97,603 19,037 1,054,339 60,300 72,893
14,214,991 9,067,781 4,275,808 28,676,546 19,532,657 14,136,592
12,091,079 8,757,554 8,021,958 10,852,746 12,919,660 19,168,875
1,629,730 4,930,640 5,498,698 3,342,651 2,031,351 9,198,820
76,481,719 62,465,237 58,404,671 80,868,402 68,322,917 85,467,670
24,078,076 24,296,811 24,705,044 22,778,206 23,891,045 25,987,927
1,180,538 1,003,222 764,514 993,986 1,062,751 1,027,298
540,679 412,707 410,745 412,842 418,583 453,422
6,452,950 7,440,041 14,815,460 5,663,695 6,237,114 8,659,655
5,252,622 4,276,151 3,217,097
32,252,243 33,152,781 40,695,763 35,101,351 35,885,644 39,345,399
$108,733,962 $95,618,018 $99,100,434 $115,969,753 $104,208,561 $124,813,069
($55,825,277) ($77,888,294) ($74,007,479) ($53,899,586) ($103,268,089) ($93,660,189)
4,448,018 4,615,362 11,791,155 6,375,039 2,498,262 1,926,964
($51,377,259) ($73,272,932) ($62,216,324) ($47,524,547) ($100,769,827) ($91,733,225)
153
CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2015 2016 2017 2018
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property Taxes $24,650,648 $26,438,620 $29,023,618 $29,551,445
Sales Taxes 13,932,125 15,188,686 24,087,776 28,340,393
Transient Occupancy Tax 12,947,473 13,393,437 13,631,507 13,978,533
Franchise fees 3,982,092 4,090,073 4,403,493
Other Taxes 8,650,056 5,124,574 5,708,187 5,871,096
Motor Vehicle In-Lieu 26,995 26,708 28,933 34,452
Property taxes in lieu of vehicle license fees 5,551,651 5,770,060 6,133,230 6,438,199
Interest Earnings 629,036 1,354,266 622,518 1,097,916
Gain from sale of property
Other 4,577,239 2,334,407 2,365,820 5,180,288
Extraordinary Item
Transfers (1,429,308) (919,547) (1,105,038) (1,997,377)
Special items 45,205,422 (7,154,626)
Total Government Activities 69,535,915 72,693,303 129,792,046 85,743,812
Business-Type Activities:
Interest Earnings 126,874 289,201 27,710 37,072
Transfers 1,429,308 919,547 1,105,038 1,997,377
Total Business-Type Activities 1,556,182 1,208,748 1,132,748 2,034,449
Total Primary Government $71,092,097 $73,902,051 $130,924,794 $87,778,261
Change in Net Position
Governmental Activities $8,553,540 $17,989,721 $58,585,149 $21,846,906
Business-Type Activities 3,116,384 7,378,367 3,194,331 5,399,973
Total Primary Government $11,669,924 $25,368,088 $61,779,480 $27,246,879
154
2019 2020 2021 2022 2023 2024
$33,446,750 $37,415,367 $41,561,039 $40,011,221 $47,680,587 $52,201,446
31,843,568 31,855,027 33,039,229 38,143,689 37,722,042 39,529,259
17,091,222 13,829,025 6,710,271 12,135,638 16,357,104 14,922,567
4,469,808 4,594,577 4,498,202 4,863,076 5,240,637 5,329,885
4,995,404 4,515,376 4,529,764 6,537,423 8,059,817 7,097,906
32,200 53,089 49,785 77,558 67,937 81,869
7,150,867 7,457,005 4,888,696 11,988,715 8,760,770 6,581,499
4,808,664 6,384,253 941,856 (6,724,092) 5,104,060 14,966,581
840,298 1,518,059 1,807,446 48,524
7,799,392 9,152,218 11,602,214 14,458,939 17,335,302 13,068,935
(2,101,222) (8,060,646) (4,984,746) (1,419,235) (2,195,337) (917,154)
(531,591)276,939 (1,378,533) (2,962,923) (5,173,366)
109,845,360 107,472,230 101,457,777 118,628,068 140,766,999 152,911,317
633,704 824,916 52,623 (761,751) 291,068 1,314,069
2,101,222 8,060,646 4,984,746 1,419,235 2,195,337 917,154
2,734,926 8,885,562 5,037,369 657,484 2,486,405 2,231,223
$112,580,286 $116,357,792 $106,495,146 $119,285,552 $143,253,404 $155,142,540
$54,020,083 $29,583,936 $27,450,298 $64,728,482 $37,498,910 $59,251,128
7,182,944 13,500,924 16,828,524 7,032,523 4,984,667 4,158,187
$61,203,027 $43,084,860 $44,278,822 $71,761,005 $42,483,577 $63,409,315
155
CITY OF SOUTH SAN FRANCISCO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Nonspendable $1,134 $33,580 $474 $106 $372 $574 $574 $4,099 $477,122 $696,267
Restricted 20,582,335 19,201,948 18,372,633 18,372,633 14,763,033 2,823,118 2,823,118
Committed 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 24,645,312
Assigned 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 7,761,552
Unassigned 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 70,418,214
Total General Fund $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 $106,344,463 (a)
All Other Governmental Funds
Nonspendable $39,205
Restricted $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 $209,140,964
Assigned 6,188,554 367,023 29,363,924 29,363,924 24,889,824 20,229,463 19,372,927
Unassigned (40,459)(88,331) (11,073) (2,971,345) 235,649 235,649 (1,437,892) (1,004,155) (6,574,321)
Total all other governmental funds $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 $221,939,570
#REF!#REF! 70,866,831 76,323,105 111,411,392 111,411,392 139,879,185 254,856,817 328,284,033
(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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Thousands
Total Committed
Total Unassigned
Total Assigned
Total Restricted
Total Nonspendable
156
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)
2015 2016 2017 2018
Revenues
Property Taxes $24,650,648 $26,438,620 $35,156,848 $35,989,644
Other Taxes 38,275,478 41,811,097 49,608,385 54,597,272
Intergovernmental revenues 10,453,071 12,360,354 4,019,771 8,433,240
Interest and Rents 3,531,966 4,207,453 3,100,692 3,524,727
Licenses and permits 4,795,158 6,896,897 7,823,403 14,674,809
Charges for services 13,387,712 15,386,358 14,485,367 31,961,419
Fines and forfeitures 1,221,413 791,756 899,118 423,604
Other 4,660,668 2,439,579 2,906,625 6,454,460
Total Revenues 100,976,114 110,332,114 118,000,209 156,059,175
Expenditures
Current:
General government 7,167,969 8,469,924 9,399,930 10,403,449
Fire Department 21,247,989 24,175,340 25,632,366 26,059,072
Police Department 23,611,743 25,458,986 25,998,097 26,970,854
Public works 15,923,071 14,846,346 12,143,965 23,859,399
Recreation and Community Services 11,826,407 13,234,028 14,897,157 15,468,370
Library 4,247,650 4,681,188 5,157,355 5,379,836
Economic and Community Development 5,917,508 7,907,655 8,943,111 9,338,793
Other 480,290 395,749 274,183 256,298
Capital outlay
Debt service:
Principal repayment 352,674 656,000 23,000 2,382,000
Interest and fiscal charges
Total Expenditures 90,775,301 99,825,216 102,469,164 120,118,071
Excess (deficiency) of revenues over
(under) expenditures 10,200,813 10,506,898 15,531,045 35,941,104
Other Financing Sources (Uses)
Transfers in 17,983,227 8,143,075 14,327,130 26,486,651
Transfers (out)(19,717,102) (13,193,699) (16,368,499)(30,795,941)
Lease revenue bonds issued
Premium on bonds
Sale of capital assets 1,016,276 3,990,605
Loss on sale of property held for resale
Total other financing sources (uses)(1,733,875)(5,050,624)(1,025,093)(318,685)
Net Change in fund balances
before extraordinary and special items 8,466,938 5,456,274 14,505,952 35,622,419
Extraordinary item
Special item 20,582,335 (7,154,626)
Net change in fund balances $8,466,938 $5,456,274 $35,088,287 $28,467,793
Debt service as a percentage of
noncapital expenditures 0.4%0.7%0.0%2.2%
For The Fiscal Year Ended June 30,
158
2019 2020 2021 2022 2023 2024
$40,597,617 $44,872,372 $46,449,735 $51,999,936 $56,441,357 $58,782,945
60,721,378 57,214,783 51,008,432 64,411,396 70,762,243 69,927,534
13,179,593 18,317,060 17,867,273 24,822,304 19,574,277 29,520,611
7,231,303 8,864,998 3,620,391 (2,537,324)7,857,199 16,653,189
15,381,416 15,900,500 15,589,002 14,062,474 20,467,644 13,978,818
41,055,659 27,442,005 23,191,413 45,787,046 27,477,040 38,550,457
926,729 814,354 535,750 700,961 757,019 480,957
7,994,701 3,067,691 7,893,148 2,524,116 11,321,587 4,263,092
187,088,396 176,493,763 166,155,144 201,770,909 214,658,366 232,157,603
10,166,977 12,453,262 12,112,319 15,422,722 15,449,760 14,093,575
27,576,879 28,161,459 31,817,325 32,597,540 35,641,540 36,822,120
28,533,292 37,468,430 70,954,323 39,678,917 36,493,052 37,348,050
38,459,963 40,070,330 51,501,254 87,823,372 89,991,879 60,780,649
16,530,603 17,130,302 15,795,645 20,295,842 22,598,050 25,190,188
5,628,693 5,940,870 5,903,883 6,495,279 6,475,274 7,706,106
9,085,390 8,780,903 11,227,503 12,709,167 12,775,661 11,947,748
333,024 723,901 3,490,091 5,610,278 2,161,116 1,478,859
5,520,422 141,250 6,971,342
3,464,000 1,210,000 975,000 4,635,000 3,285,000 4,204,000
739,146 2,307,460 5,525,760 8,280,065 8,205,338
139,778,821 152,678,603 206,084,803 236,314,299 233,292,647 214,747,975
47,309,575 23,815,160 (39,929,659)(34,543,390)(18,634,281)17,409,628
22,230,499 38,117,966 37,970,252 36,220,467 30,464,581 37,437,496
(24,581,721)(46,647,023)(43,202,081)(38,772,007)(33,708,360)(38,604,650)
43,905,000 86,410,000 65,420,000
10,242,530 18,116,565 6,686,317
840,298 (2,718,691)1,507,641 1,852,123
(6,439,913)
(1,510,924)45,618,473 96,576,045 71,062,418 (7,831,569)(1,167,154)
45,798,651 69,433,633 56,646,386 36,519,028 (26,465,850)16,242,474
(531,591)276,939 (1,378,533)(2,962,923)(5,173,366)
$45,267,060 $69,710,572 $55,267,853 $33,556,105 ($31,639,216)$16,242,474
3.0%1.7%2.9%7.0%7.3%7.4%
For The Fiscal Year Ended June 30,
159
Real Property Net Taxable value Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct
Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b)
2015 6,313,393,048$ 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%
2024 10,795,600,492$ 4,711,933,520$ 11,823,798,494$ 830,930,966$ 28,162,263,472$ 2,729,928,793$ 30,892,192,265$ 30,892,192,265$ 0.13627%
Source: HdL Coren & Cone, San Mateo County Assessor 2014/15-2023/24 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
$35,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Mi
l
l
i
o
n
s
Unsecured Secured
160
Fiscal Basic School Total Direct/Overlapping
Year Levy Districts Tax Rates
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)
2024 1.000 0.2086 1.2086 (1,30)
Notes:
Source: HDL, Coren & Cone (San Mateo County Assesor 2014/15 -2023/24 Tax Rate Table
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.
(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.
(30) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0946, which includes SSFUSD & San Mateo Jr College bond. 4
has a rate of 1.133 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SMCCCD 2021 and SM Jr
College bonds. 1 has a rate of 1.0934, which includes San Bruno Pk Elem bond, SM Union High bond, SM High, SMCCCD
2021 and San Mateo Jr. Coll bonds.
(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.
161
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.*$3,399,735,882 1 11.01% $1,763,579,111 1 11.84%
HCP Oyster Point III LLC 878,687,935 2 2.84%--
Slough SSF LLC 720,471,416 3 2.33% 1,062,682,272 2 7.13%
Kilroy Realty LP 618,062,536 4 2.00%--
ARE San Francisco LLC*514,616,833 5 1.67% 407,673,426 3 --
GNS North Tower LP*484,932,971 6 1.57%--
BMR 1000 Gateway LP 477,565,994 7 1.55%--
GNS South Tower LP*444,194,987 8 1.44%--
BMR 750 800 850 Gateway LP 441,131,485 9 1.43%--
ARE-San Francisco No 65 LLC*389,661,285 10 1.26%--
Britannia Pointe Grand LP -- 287,378,265 4 1.93%
United Airlines Inc -- 215,075,660 5 1.44%
Myers Peninsula Venture LLC*-- 153,235,444 6 1.03%
BMR 750 800 850 Gateway LP NA*-- 152,901,550 7 1.03%
Gateway Center LLC*-- 138,821,232 8 0.93%
BMR 180 Oyster Point LLC -- 130,222,375 9 0.87%
SFF Logistics Inc -- 118,000,000 10 0.79%
Subtotal $8,369,061,324 27.09% $4,429,569,335 29.74%
Total Net Assessed Valuation:
Fiscal Year 2023-24 $30,892,192,265
Fiscal Year 2014-15 $14,895,624,272
* Pending Appeals on Parcels
Source:
HdL Coren & Cone, 2014/15 & 2023/24 Top Ten Property Taxpayers (Net Values).
San Mateo County Assessor 2014/15 & 2023/24 Combined Tax Rolls and the SBE Non Unitary Tax Roll
2023-24 2014-15
CITY OF SOUTH SAN FRANCISCO
Principal Property Tax Payers
Current Year and Nine Years Ago
162
Fiscal Percent of
Year Allocations (5) Collections Delinquencies Delinquent taxes
2015 15,184,788$ (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%
2024 29,600,068 (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
$28
$29
$30
$31
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Mi
l
l
i
o
n
s
163
CITY OF SOUTH SAN FRANCISCO
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Loans from Lease
Fiscal Successor Revenue Capital
Year Agency Bonds Lease Total
2015 11,370,152$ -$ 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
2024 1,166,152 215,522,464 -216,688,616
Business-Type Activities
Sewer State Water Total Percentage
Fiscal Revenue Resources Primary of Personal Per
Year Bonds Loans Total Government Income (a) Capita (a)
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 1.81% 651.73
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 7.42% 4,370.56
2024 1,245,000 54,453,876 55,698,876 272,387,492 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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Mi
l
l
i
o
n
s
Total Governmental Total Business
164
CITY OF SOUTH SAN FRANCISCO
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2024
2023-24 Assessed Valuation:$30,892,192,265
Redevelopment Incremental Valuation:-
Adjusted Assessed Valuation:$30,892,192,265
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2024 % Applicable (1) Debt 6/30/24
San Mateo Community College District $682,237,216 10.004% $68,251,011
Jefferson Union High School District 338,312,020 4.203 14,219,254
South San Francisco Unified School District 303,407,351 91.994 279,116,558
Brisbane School District 29,056,439 22.100 6,421,473
City of South San Francisco Community Facilities District No. 2021-1 19,610,000 100.000 19,610,000
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $387,618,296
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Mateo County General Fund Obligations $656,146,645 10.004% $56,537,270
San Mateo County Board of Education Certificates of Participation 5,735,000 10.004 573,729
San Mateo County Flood Control and Sea LRR District General Fund Obligations 13,065,000 63.447 8,289,351
South San Francisco Unified School District General Fund Obligations 2,560,000 91.994 2,355,046
Jefferson Union High School District Certificates of Participation 46,845,000 4.203 1,968,895
City of South San Francisco Lease Revenue Bonds 215,522,464 100.000 215,522,464
City of South San Francisco Loans Payable 1,166,152 100.000 1,166,152
City of South San Francisco Capital Leases -- -
San Mateo County Mosquito and Vector Control District General Fund Obligations 3,404,654 10.004 340,602
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT:$286,753,509
TOTAL DIRECT DEBT $216,688,616
Total Overlapping Debt $457,683,189
COMBINED TOTAL DEBT $674,371,805 (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 asses
Ratios to Adjusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.26%
Total Direct Debt 0.70%
Combined Total Debt 2.19%
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.
165
ASSESSED VALUATION:$30,892,192,265
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)$1,158,457,210
LESS AMOUNT OF DEBT SUBJECT TO LIMIT:-
LEGAL BONDED DEBT MARGIN $1,158,457,210
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2015 558,585,910$ -$ 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%
2024 1,158,457,210 - 1,158,457,210 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, 2024
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.
166
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
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
2024 35,696,888 24,880,509 10,816,379 375,000 71,625 446,625 24.22
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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Mi
l
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n
s
Revenue (1)
Expenses (2)
167
CITY OF SOUTH SAN FRANCISCO
SEWER DEBT SERVICE COVERAGE
SEWER RENTAL ENTERPRISE FUND
LAST NINE FISCAL YEARS
Fiscal Year
2016 2017 2018 2019 2020 2021 2022 2023 2024
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 $25,844,338
Connection and Other Fees 104,283 147,134 229,002 521,205 146,672 178,092 210,980 710,915 143,589
Interest Income 238,389 23,552 31,061 488,437 623,256 41,888 (652,348) 215,397 1,049,306
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 8,659,655
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 $35,696,888
Operating Expenses (2)$18,759,650 $13,514,718 $19,073,943 $20,398,147 $21,064,167 $21,401,330 $21,049,553 $22,399,717 $24,880,510
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 $7,943,839 $10,816,378
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 $5,355,201
CSCDA Series 2005D Revenue Bonds 178,036 167,284 155,706 143,608 130,815 117,175 102,716 85,562 67,001
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 $5,422,202
Total Parity Debt Service Coverage 1.22 2.16 1.64 1.78 1.91 2.22 1.20 1.29 1.99
10,012,867 10,012,867 10,012,867 10,012,867 10,012,867 10,012,867 10,012,867 10,012,867 10,012,867
(2) Excludes depreciation, capital expenditures and debt service.
(3) Includes Sewer Revenue Bonds and State Water Loan payments
(1) Primarily consists of payments from the City of San Bruno. The City of San Bruno is a co-owner of the Plant and pays the City in advance on a quarterly basis for the City of San Bruno's share of operating costs. See "Wastewater System" herein.
(4) Reflects an adopted increase in rates for Fiscal Year 2004-05 of 25% per Resolution No. 68-2004, adopted by the City Council on July 14, 2004 and effective on and after July 1, 2004 and an adopted increase in rates for Fiscal Year 2005-06 of 9% per
Resolution No. 68-2005, adopted by the City Council on June 22, 2005 and effective on and after June 22, 2005.
6
CITY OF SOUTH SAN FRANCISCO
REDEVELOPMENT PLEDGED REVENUE COVERAGE
LAST TEN FISCAL YEARS
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements Fiscal Available Debt Service Requirements
Year Revenue Principal Interest Total Coverage Year Revenue Principal Interest Total Coverage
2015 1,605,000$ 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
2024 2024
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
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 - - -
2024 - - -
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)
169
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
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%
2023 64,601 3,806,610 58,924 3.1% 726,353 8.89%
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
$4,000,000
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%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City Unemployment Rate
8.20%
8.30%
8.40%
8.50%
8.60%
8.70%
8.80%
8.90%
9.00%
City Population % of County
$‐
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
City Per Capita Personal Income
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment
Genentech Inc.8,637 1 13.4% 8,451 1 12.9%
Verily Life Sciences *2,220 2 3.4%
Stripe, Inc 1,088 3 1.7%
Costco*834 4 1.3% 616 5 0.9%
ABBVIE *650 5 1.0%
Life Technologies Corporation 622 6 1.0% 622 4 0.9%
AMGEN, Inc 600 7 0.9%
Amazon.com Services*427 8 0.7%
Goodwill Industries of San Francisco*375 9 0.6%
Archstone South San Francisco 360 10 0.6%
Layton Construction Co Inc 779 2 1.2%
Onyx Pharmaceuticals Inc 650 3 1.0%
The New French Bakery, Inc 414 6 0.6%
AMGEN San Francisco LLC 406 7 0.6%
Successfactors, Inc 400 8 0.6%
SBM Site Services LLC 388 9 0.6%
Wave Division Holdings LLC 344 10 0.5%
Subtotal 15,813 24.5% 13,070 19.9%
Total City Population 64,601 65,749
* Multiple locations combined
Data Sources:
(1) SSF Business License Database- Business licenses expiring 12/31/24.
(2) City of South San Francisco CAFR 2014-15
(3) Population: HDL/California State Dept of Finance 2023.
2014-152023-24
CITY OF SOUTH SAN FRANCISCO
Principal Employers
Current Year and Nine Years Ago
171
Function 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Government (1) 40.60 47.10 47.10 43.60 41.60 46.60 46.60 51.30 59.38 59.38
Fire Department (2)83.48 92.68 92.68 92.68 91.93 91.68 91.68 93.49 93.49 93.70
Police Department 118.87 120.87 120.87 120.87 122.87 121.87 120.92 122.09 122.44 122.94
Park, Rec. & Maintenance Services 121.31 134.16 137.19 144.29 144.79 151.75 143.84 150.44 179.26 187.41
Library 37.71 38.71 39.26 40.49 41.49 41.49 38.56 38.15 44.06 46.06
Economic and Comm. Development 26.15 27.15 29.40 30.40 30.40 31.40 29.00 31.40 32.40 32.40
Public Works (2) 47.68 49.00 49.00 49.00 53.00 52.00 47.00 52.85 59.37 58.37
Water Quality Control Plant 39.06 41.74 41.50 41.50 41.50 41.50 41.50 41.50 41.50 43.00
Total 514.86 551.41 557.00 562.83 567.58 578.29 559.10 581.22 631.90 643.26
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 FY2015-2024 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
700.00
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Government (1)Fire Department (2)Police Department
Park, Rec. & Maintenance Services Library Economic and Comm. Development
Public Works (2)Water Quality Control Plant
172
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function/ProgramPublic safety:Fire:
Inspections conducted 1,817 2,563 3,426 2,292 2,511 2,375 3,888 3,060 2,421 2,062Police: Police calls for service 31,532 32,477 33,313 34,811 38,299 38,541 40,503 60,333 59,580 55,248 Law violations: Part I crimes 1,874 2,126 2,103 2,276 2,007 2,070 3,481 1,955 1,892 2,734 Physical arrests (adult and juvenile)1,933 2,071 1,870 1,891 1,943 1,871 1,635 2,025 1,780 1,418 Traffic violations 3,828 4,211 3,785 3,359 3,620 4,172 2,119 1,985 1,799 1,742 Parking violations 13,378 12,006 15,291 18,339 26,228 12,269 13,276 17,667 16,995 11,859Public worksStreet resurfacing (miles) (Eng Div) 0 2 8 3.3 7.0 7.9 19.57 9.60 6.55 18.00
Potholes repaired (square miles
prior)/(square feet)0.11 2 0 (2) 3221 410 190 165 264 267 450Asphalt used for street repairs (tons) 250 151 94 148 13 46 69 68 44.5 51.1
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 11,489
Library:Total items borrowed 643,630 565,806 558,106 544,059 582,497 (3) 450,637 (3) 245,869 456,652 439,846 (5) 448,054
Items in collection 130,106 (1) 208,400 (1) 209,895 (1) 219,114 (1) 228,224 (1 ) 247,393 (1) 260,205 (1) 229,891 (1) 283,792 (1) 207,610
WastewaterResidential connections 16,470 16,491 16,488 12,556 12,559 12,549 12,571 12,672 12,673 12,674Commercial connections 1,560 1,561 1,562 1,575 1,576 1,582 1,575 1,523 1,508 1,493Other connections 128 131 140 140 140 140 140 140 140 140
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 8.86
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.
(5) Main Library closed for 4 months to move to the new facility
CITY OF SOUTH SAN FRANCISCO
Operating Indicators by Function/Program
Last Ten Fiscal Years
173
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Function/ProgramPublic safety:
Fire stations 5555555555Police stations 1111111111Police Fleet 53 53 52 59 63 60 63 60 63 63
Public worksMiles of streets 127 127 127 127 127 127 127 127 139.6 139.6Street lights 4,505 4,505 4,505 4,531 4,531 4,531 4,581 4,581 4,581 4,668Parking District lights (3) 20 20 16 16 16 16 16 16 16 16Traffic Signals 74 76 76 76 76 76 80 80 80 83
Culture and recreation:Community services:City parks 28 28 28 28 28 28 28 28 30 30City parks acreage 190 190 190 190 210 210 210 210 225 225Playgrounds (4) 24 24 24 24 24 34 34 34 35 35City trails 6666666666Community gardens 1111111111Community centers 4444444444Senior centers (2)1111111111Skate Park 1111111111Dog park 1111111111Swimming pools 1111111111Tennis courts 7777777777Basketball Courts 12 12 12 12 12 12 12 12 12 12Baseball/softball diamonds11111111111111111313Soccer/football fields 5555555544
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.
Last Ten Fiscal Years
Capital Asset Statistics by Function/Program
CITY OF SOUTH SAN FRANCISCO
174
2019 2020 2021 2022 2023 2024
Transient Occupancy Tax Detail
TOT Collected $15,535,213 $12,591,459 $6,215,172 $11,268,807 $15,188,739 $13,856,669
1% Measure I Special Tax 1,556,009 1,114,911 495,099 866,831 1,168,365 1,065,898
Total TOT Collection 17,091,222$ 13,706,370$ 6,710,270$ 12,135,638$ 16,357,104$ 14,922,567$
1% Measure I Special Tax Use
Police 311,202$ 222,982$ 99,020$ 173,366$ 233,673$ 213,180$
Fire 311,202 222,982 99,020 173,366 233,673 213,180
Library 311,202 222,982 99,020 173,366 233,673 213,180
Parks 311,202 222,982 99,020 173,366 233,673 213,180
Recreation 311,202 222,982 99,020 173,366 233,673 213,180
Total 1% Measure I Special Tax 1,556,010$ 1,114,910$ 495,099$ 866,831$ 1,168,365$ 1,065,898$
* 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 acquisition, 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 Six Fiscal Years
175
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CITY OF SOUTH SAN FRANCISCO
MEASURE A FUNDS
Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure A Funds for Local Transportation Purposes
For the Year Ended June 30, 2024
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CITY OF SOUTH SAN FRANCISCO
MEASURE A FUNDS
For the Year Ended June 30, 2024
Table of Contents
Page
Independent Accountant’s Report on Management’s Assertion .................................................... 1
Financial Statements:
Balance Sheet .................................................................................................................................. 2
Schedule of Revenues, Expenditures and Changes in Fund Balance ............................................. 3
Notes to Financial Statements ......................................................................................................... 5
Management’s Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure A Funds for Local Transportation Purposes ................................................................. 7
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INDEPENDENT ACCOUNTANT'S REPORT
ON MANAGEMENT’S ASSERTION
Honorable Mayor and Members of City Council of the
City of South San Francisco, California
We have examined management of the City of South San Francisco’s assertion, included in accompanying
Management’s Report on Compliance with the Agreement for Distribution of San Mateo County Measure A
Funds for Local Transportation Purposes (the Agreement) between the City of South San Francisco and the
San Mateo County Transportation Authority dated March 5, 2009, that the City complied with the requirements
of the Agreement during the year ended June 30, 2024. Management is responsible for that assertion. Our
responsibility is to express an opinion on management’s assertion about the City’s compliance based upon our
examination.
Our examination was conducted in accordance with the attestation standards established by the American
Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to
obtain reasonable assurance about whether management’s assertion that the City complied with the
requirements of the Agreement is fairly stated, in all material respects. An examination involves performing
procedures to obtain evidence about management’s assertion. The nature, timing and extent of procedures
selected depend on our judgment, including an assessment of the risks of material misstatement of
management’s assertion, whether due to fraud or error. We believe that the evidence we obtained is sufficient
and appropriate to provide a reasonable basis for our opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance with relevant
ethical requirements relating to the engagement.
In our opinion, management’s assertion that the City complied with the requirements of the Agreement for the
year ended June 30, 2024 is fairly stated, in all material respects.
This report is intended solely for the information and use of management, the City Council and the San
Mateo County Transportation Authority and is not intended to be and should not be used by anyone other
than those specified parties; however, this restriction is not intended to limit the distribution of this report,
which is a matter of public record.
Pleasant Hill, California
December 19, 2024
1
CITY OF SOUTH SAN FRANCISCO
MEASURE A FUNDS
BALANCE SHEET
JUNE 30, 2024
ASSETS:
Cash and investments $7,155,381
Accounts receivable 157,910
Accrued interest receivable 39,461
TOTAL ASSETS $7,352,752
FUND BALANCE:
Restricted for Measure A capital projects and maintenance $7,352,752
TOTAL FUND BALANCE $7,352,752
See accompanying notes to the financial statements.
2
CITY OF SOUTH SAN FRANCISCO
MEASURE A FUNDS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2024
REVENUES
Sales tax from the County of San Mateo $2,154,798
County grants 48,975
Interest and investment income 263,189
Total Revenues 2,466,962
TRANSFERS OUT
Capital Improvements Projects:
Street Rehabilitation Program FY 18-19 870
Grand Blvd Project - Street Improvements 13,701
Oyster Point Peninsula Flood Improvements 82,184
South Linden Grade Separation 186
2023 Surface Seal Project 223,130
HSIP Curb Ramp Improvements 200,000
General Fund Projects:
South City Shuttle 273,112
Total Transfers Out 793,183
Net Change in Fund Balance 1,673,779
Fund Balance, July 1 5,678,973
Fund Balance, June 30 $7,352,752
See accompanying notes to the financial statements.
3
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CITY OF SOUTH SAN FRANCISCO
MEASURE A FUNDS
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
At the General Election of June 7, 1988, the voters of City of San Mateo County approved
Measure A, which is an ordinance providing for the creation of the San Mateo County
Transportation Authority for the imposition of a one-half of one percent sales transaction and
use tax. Twenty percent of the aforementioned tax is to be allocated to the cities of San Mateo
County and to the County of San Mateo for the improvement of local transportation, including
streets and roads in accordance with Measure A requirements.
B.Basis of Accounting
The Schedule of Measure A Funds (Transportation Sales Tax), a special revenue fund of the
City of South San Francisco, California, have been prepared in conformity with accounting
principles generally accepted in the United States of America as applied to governmental units.
The Governmental Accounting Standards Board is the accepted standard-setting body for
establishing governmental accounting and financial reporting principles.
The Measure A Funds are accounted for using the modified accrual basis of accounting. Under
this basis, revenues are recognized when they become both measurable and available to finance
expenditures of the fiscal period. Expenditures are recognized when the liability is incurred.
5
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December 19, 2024
San Mateo County Transportation Authority
120 San Carlos Avenue
San Carlos, California 94070
Management’s Report on Compliance with the Agreement for Distribution of San Mateo County
Measure A Funds for Local Transportation Purposes
The City of South San Francisco is responsible for complying with the Agreement for Distribution of San
Mateo County Measure A Funds for Local Transportation Purposes (the Agreement) between the City and
the San Mateo County Transportation Authority entered into on March 5, 2009. The Agreement states that in
return for receiving an annual allocation of a specified portion of the retail transactions and use tax approved
by Measure A – San Mateo County Transportation Expenditure Plan (the Measure), the City agrees that funds
“shall not be used to replace funds previously provided by property tax or other local revenues for public
transportation purposes, and that City will limit the use of funds provided pursuant to this Agreement to the
improvement and maintenance of local transportation, including streets and road improvements.”
With respect to compliance with the Agreement, management attests to the following for the year ended June
30, 2024:
x Management is responsible for establishing and maintaining an effective internal control structure
with respect to compliance with the Agreement;
x Management is responsible for complying with the Agreement;
x Management has evaluated the City’s compliance with the requirements of the Agreement;
x All Transactions, as summarized in the preceding Balance Sheet and Schedule of Revenues,
Expenditures and Changes in Fund Balance for the Year Ended June 30, 2024, are in compliance
with the Agreement.
__________________________ ____________________________
City Manager, Sharon Ranals Director of Finance, Karen Chang
CITY COUNCIL 2024
JAMES COLEMAN, MAYOR (DIST. 4)
EDDIE FLORES, VICE MAYOR (DIST. 5)
FLOR NICOLAS, MEMBER (DIST. 3)
MARK NAGALES, MEMBER (DIST. 2)
MARK ADDIEGO, MEMBER (DIST. 1)
SHARON RANALS, CITY MANAGER
7
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City of South San Francisco
Measure W Funds
Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure W Funds for
Local Transportation Purposes in Accordance
with the San Mateo County Congestion Relief Plan
For the Year Ended June 30, 2024
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CITY OF SOUTH SAN FRANCISCO
MEASURE W FUNDS
For the Year Ended June 30, 2024
Table of Contents
Page
Independent Accountant’s Report on Management’s Assertion ..................................................... 1
Financial Statements:
Balance Sheet ................................................................................................................................... 2
Schedule of Revenues, Expenditures and Changes in Fund Balance .............................................. 3
Notes to Financial Statements .......................................................................................................... 5
Management’s Report on Compliance with the
Agreement for Distribution of San Mateo County
Measure W Funds for Local Transportation Purposes in
Accordance with the San Mateo County Congestion Relief Plan ................................................. 7
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INDEPENDENT ACCOUNTANT'S REPORT
ON MANAGEMENT’S ASSERTION
Honorable Mayor and Members of City Council of the
City of South San Francisco, California
We have examined management of the City of South San Francisco’s assertion, included in accompanying
Management’s Report on Compliance with the Agreement for Distribution of San Mateo County Measure W
Funds for Local Transportation Purposes in Accordance with the San Mateo County Congestion Relief Plan
(the Agreement) between the City of South San Francisco and the San Mateo County Transportation
Authority dated October 1, 2019, that the City complied with the requirements of the Agreement during the
year ended June 30, 2024. Management is responsible for that assertion. Our responsibility is to express an
opinion on management’s assertion about the City’s compliance based upon our examination.
Our examination was conducted in accordance with the attestation standards established by the American
Institute of Certified Public Accountants. Those standards require that we plan and perform the examination
to obtain reasonable assurance about whether management’s assertion that the City complied with the
requirements of the Agreement is fairly stated, in all material respects. An examination involves performing
procedures to obtain evidence about management’s assertion. The nature, timing and extent of procedures
selected depend on our judgment, including an assessment of the risks of material misstatement of
management’s assertion, whether due to fraud or error. We believe that the evidence we obtained is
sufficient and appropriate to provide a reasonable basis for our opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance with relevant
ethical requirements relating to the engagement.
In our opinion, management’s assertion that the City complied with the requirements of the Agreement for
the year ended June 30, 2024 is fairly stated, in all material respects.
This report is intended solely for the information and use of management, the City Council and the San
Mateo County Transportation Authority and is not intended to be and should not be used by anyone other
than those specified parties; however, this restriction is not intended to limit the distribution of this report,
which is a matter of public record.
Pleasant Hill, California
December 19, 2024
1
CITY OF SOUTH SAN FRANCISCO
MEASURE W FUNDS
BALANCE SHEET
JUNE 30, 2024
ASSETS:
Cash and investments $2,292,264
Accounts receivable 81,725
Accrued interest receivable 15,830
TOTAL ASSETS $2,389,819
FUND BALANCE:
Restricted for Measure W capital projects and maintenance $2,389,819
TOTAL FUND BALANCE $2,389,819
See accompanying notes to the financial statements.
2
CITY OF SOUTH SAN FRANCISCO
MEASURE W FUNDS
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2024
REVENUES
Sales tax from the County of San Mateo $1,035,179
Interest and investment income 105,507
Total Revenues 1,140,686
TRANSFERS OUT
Capital Improvements Projects:
Street Rehabilitation Program FY 18-19 721
2022 West of 101 Pavement Rehabilitation Project 8,734
HSIP Curb Ramp Improvements 554,397
2023 Surface Seal Project 100,000
2024 Surface Seal Project 176,912
Total Transfers Out 840,764
Net Change in Fund Balance 299,922
Fund Balance, July 1 2,089,897
Fund Balance, June 30 $2,389,819
See accompanying notes to the financial statements.
3
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CITY OF SOUTH SAN FRANCISCO
MEASURE W FUNDS
Notes to Financial Statements
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
At the General Election of November 6, 2018, the voters of City of San Mateo County approved
Measure W, which is an ordinance providing for the San Mateo County Transportation Authority to
impose a one-half of one percent sales transaction and use tax. The San Mateo County Congestion
Relief Plan includes an annual allocation of 12.5% of the total revenue generated by the
aforementioned tax for the Local Safety, Pothole and Congestion Relief Improvement Program
Category, of which 10% is to be allocated to the cities of San Mateo County and to the County of
San Mateo for transportation and public transit in accordance with the Congestion Relief Plan.
B.Basis of Accounting
The Schedule of Measure W Funds (Transportation Sales Tax), a special revenue fund of the City
of South San Francisco, California, have been prepared in conformity with accounting principles
generally accepted in the United States of America as applied to governmental units. The
Governmental Accounting Standards Board is the accepted standard-setting body for establishing
governmental accounting and financial reporting principles.
The Measure W Funds are accounted for using the modified accrual basis of accounting. Under this
basis, revenues are recognized when they become both measurable and available to finance
expenditures of the fiscal period. Expenditures are recognized when the liability is incurred.
5
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December 19, 2024
San Mateo County Transportation Authority
120 San Carlos Avenue
San Carlos, California 94070
Management’s Report on Compliance with the Agreement for Distribution of San Mateo County
Measure W Funds for Local Transportation Purposes in accordance with the San Mateo County
Congestion Relief Plan
The City of South San Francisco is responsible for complying with the Agreement for Distribution of San
Mateo County Measure W Funds for Local Transportation Purposes in Accordance with the San Mateo
County Congestion Relief Plan (the Agreement) between the City and the San Mateo County Transportation
Authority entered into on October 1, 2019. The Agreement states that in return for receiving an annual
allocation of a specified portion of the retail transactions and use tax approved by Measure W – San Mateo
County Transportation Expenditure Plan (the Measure), the City agrees that funds shall not be used to replace
funds previously provided for public transportation investments, and that City will limit the use of funds
provided pursuant to this Agreement to invest in major arterial and local roadway improvements in key
congested areas throughout the County, focusing on improving safety, reducing congestion, and supporting
all modes of travel on the County’s roadway system.
With respect to compliance with the Agreement, management attests to the following for the year ended June
30, 2024:
x Management is responsible for establishing and maintaining an effective internal control structure
with respect to compliance with the Agreement;
x Management is responsible for complying with the Agreement;
x Management has evaluated the City’s compliance with the requirements of the Agreement;
x All Transactions, as summarized in the preceding Balance Sheet and Schedule of Revenues,
Expenditures and Changes in Fund Balance for the Year Ended June 30, 2024, are in compliance
with the Agreement.
__________________________ ____________________________
City Manager, Sharon Ranals Director of Finance, Karen Chang
CITY COUNCIL 2024
JAMES COLEMAN, MAYOR (DIST. 4)
EDDIE FLORES, VICE MAYOR (DIST. 5)
FLOR NICOLAS, MEMBER (DIST. 3)
MARK NAGALES, MEMBER (DIST. 2)
MARK ADDIEGO, MEMBER (DIST. 1)
SHARON RANALS, CITY MANAGER
7
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INDEPENDENT ACCOUNTANT’S REPORT ON
APPLYING AGREED UPON PROCEDURES FOR
COMPLIANCE WITH THE PROPOSITION 111
2023-2024 APPROPRIATIONS LIMIT INCREMENT
Honorable Mayor and Members of the City Council
City of South San Francisco, California
We have performed the procedures enumerated below on the Appropriations Limit Worksheet (Worksheet)
of the City of South San Francisco, California, for the year ended June 30, 2024. The City’s management is
responsible for the Worksheet.
The City has agreed to and acknowledged that the procedures performed are appropriate to meet the
intended purpose of these procedures, which were suggested by the League of California Cities and
presented in their Article XIIIB Appropriations Limitation Uniform Guidelines, performed solely to assist
you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report
may not be suitable for any other purpose. The procedures performed may not address all the items of
interest to a user of this report and may not meet the needs of all users of this report and, as such, users are
responsible for determining whether the procedures performed are appropriate for their purposes.
The procedures and associated findings were as follows:
A. We obtained the Worksheet and determined that the 2023-2024 Appropriations Limit of
$168,641,010 and annual adjustment factors were adopted by Resolution of the City Council. We
also determined the population and inflation options were selected by a recorded vote of the City
Council.
B. We recomputed the 2023-2024 Appropriations Limit by multiplying the 2022-2023 Prior Year
Appropriations Limit by the Total Growth Factor. We recomputed the Total Growth Factor by
multiplying the population option by the inflation option.
C. For the Worksheet, we agreed the Per Capita Income Factor and City Population Factor to
California State Department of Finance Worksheets. We agreed the County Population Factor to
the California State Department of Finance Worksheet, but it was not included on the City’s
Worksheet.
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our
engagement in accordance with attestation standards established by the American Institute of Certified
Public Accountants. We were not engaged to and did not conduct an examination or review engagement,
the objective of which would be the expression of an opinion or conclusion, respectively, on the Worksheet.
Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures,
other matters might have come to our attention that would have been reported to you.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance
with the relevant ethical requirements related to our agreed-upon procedures engagement.
This report is intended solely for the information and use of management and the City Council and is not
intended to be and should not be used by anyone other than those specified parties; however, this
restriction is not intended to limit the distribution of this report, which is a matter of public record.
Pleasant Hill, California
December 19, 2024
CITY OF SOUTH SAN FRANCISCO
REQUIRED COMMUNICATIONS
FOR THE YEAR ENDED
JUNE 30, 2024
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CITY OF SOUTH SAN FRANCISCO
REQUIRED COMMUNICATIONS
For the Year Ended June 30, 2024
Table of Contents
Page
Required Communications ................................................................................................................................ 1
Significant Audit Matters:
Qualitative Aspects of Accounting Practices ................................................................................... 1
Difficulties Encountered in Performing the Audit ........................................................................... 3
Corrected and Uncorrected Misstatements ...................................................................................... 3
Disagreements with Management .................................................................................................... 3
Management Representations ............................................................................................................ 3
Management Consultations with Other Independent Accountants ................................................. 4
Other Audit Findings or Issues .......................................................................................................... 4
Other Matters ............................................................................................................................................ 4
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REQUIRED COMMUNICATIONS
To the City Council of
the City of South San Francisco, California
We have audited the basic financial statements of the City of South San Francisco, California, for the year
ended June 30, 2024. We did not audit the financial statements of the South San Francisco Conference
Center Authority, a discretely presented component unit of the City, as of and for the year ended June 30,
2024, which represents 0.60%, 0.72%, and 1.89%, of the assets, net position and revenues, respectively,
of the primary government. The component unit financial statements were audited by another auditor,
whose report thereon has been furnished to us, and our opinion, insofar as it relates to the amounts
included for this entity, is based solely on the report of the other auditors.
Professional standards require that we provide you with information about our responsibilities under
generally accepted auditing standards and Government Auditing Standards and the Uniform Guidance, as
well as certain information related to the planned scope and timing of our audit. We have communicated
such information in our letter to you dated June 7, 2024 and in our meeting with the City Manager on
June 4, 2024. Professional standards also require that we communicate to you the following information
related to our audit.
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Accounting Policies - Management is responsible for the selection and use of appropriate accounting
policies. The significant accounting policies used by the City are described in Note 1 to the financial
statements. No new accounting policies were adopted and the application of existing policies was not
changed during the year, except as follows:
GASB 100 – Accounting for Changes and Error Corrections
The primary objective of this Statement is to enhance accounting and financial reporting
requirements for accounting changes and error corrections to provide more understandable,
reliable, relevant, consistent, and comparable information for making decisions or assessing
accountability.
This Statement defines accounting changes as changes in accounting principles, changes in
accounting estimates, and changes to or within the financial reporting entity and describes the
transactions or other events that constitute those changes. As part of those descriptions, for (1)
certain changes in accounting principles and (2) certain changes in accounting estimates that
result from a change in measurement methodology, a new principle or methodology should be
justified on the basis that it is preferable to the principle or methodology used before the change.
That preferability should be based on the qualitative characteristics of financial reporting—
understandability, reliability, relevance, timeliness, consistency, and comparability. This
Statement also addresses corrections of errors in previously issued financial statements.
The City implemented the provisions of the statement related to the change within the financial
reporting entity for the movement of two funds from major funds to nonmajor funds and the
presentation of the funds’ beginning fund balance, as noted on the Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances.
1
The following pronouncement also became effective, but did not have a material effect on the financial
statements:
GASB 99 – Omnibus 2022, paragraphs 4-10 (related to financial guarantees and the
classification and reporting of derivative instruments)
Unusual Transactions, Controversial or Emerging Areas - We noted no transactions entered into by the
City during the year for which there is a lack of authoritative guidance or consensus. All significant
transactions have been recognized in the financial statements in the proper period.
Accounting Estimates - Accounting estimates are an integral part of the financial statements prepared by
management and are based on management’s knowledge and experience about past and current events
and assumptions about future events. Certain accounting estimates are particularly sensitive because of
their significance to the financial statements and because of the possibility that future events affecting
them may differ significantly from those expected. The most sensitive estimates affecting the City’s
financial statements were:
Estimated Fair Value of Investments: As of June 30, 2024, the City held approximately $426.8
million of cash and investments as measured by fair value as disclosed in Note 2 to the financial
statements. Fair value is essentially market pricing in effect as of June 30, 2024. These fair
values are not required to be adjusted for changes in general market conditions occurring
subsequent to June 30, 2024.
Estimate of Depreciation: Management’s estimate of the depreciation is based on useful lives
determined by management. These lives have been determined by management based on the
expected useful life of assets as disclosed in Note 1L to the financial statements. We evaluated
the key factors and assumptions used to develop the depreciation estimate and determined that it
is reasonable in relation to the basic financial statements taken as a whole.
Estimated Net Pension Liabilities and Pension-Related Deferred Outflows and Inflows of
Resources: Management’s estimate of the net pension liabilities and deferred outflows/inflows of
resources are disclosed in Note 7 to the financial statements and are based on actuarial studies and
accounting valuations determined by the California Public Employees Retirement System, which
are based on the experience of the City. We evaluated the key factors and assumptions used to
develop the estimates and determined that the estimates are reasonable in relation to the basic
financial statements taken as a whole.
Estimated Net OPEB Liability and OPEB-Related Deferred Outflows and Inflows of Resources:
Management’s estimate of the net OPEB liability and deferred outflows/inflows of resources are
disclosed in Note 9 to the financial statements and are based on an actuarial study determined by
a consultant, which is based on the experience of the City. We evaluated the key factors and
assumptions used to develop the estimates and determined that the estimates are reasonable in
relation to the basic financial statements taken as a whole.
Estimated Leases Receivable, Leases Payable and Deferred Inflows of Resources Related to
Leases: Management’s estimates of leases receivable and leases payable, as disclosed in Note 10
to the financial statements, are based on the agreement term, including any assumptions related to
whether extensions may be exercised, and the discount rate net present value calculation is based
on the estimated borrowing rate at the measurement date. We evaluated the key factors and
assumptions used to develop the leases receivable and deferred inflows of resources related to
leases estimates and determined that they are reasonable in relation to the basic financial
statements taken as a whole.
2
Estimated Compensated Absences: Accrued compensated absences, which are comprised of
accrued vacation and sick leave, is estimated using accumulated unpaid leave hours and hourly
pay rates in effect at the end of the fiscal year, and are disclosed in Note 1M to the financial
statements. We evaluated the key factors and assumptions used to develop the accrued
compensated absences and determined that it is reasonable in relation to the basic financial
statements taken as a whole.
Estimated Claims Liabilities: Management’s estimate of the claims liabilities payable is disclosed
in Note 12 to the financial statements and the worker’s compensation claims payable is based on
an actuarial study determined by a consultant and the general liability claims payable is based on
estimates determined by the City’s third party claims administrator, which are both based on the
claims experience of the City. We evaluated the key factors and assumptions used to develop the
estimate and determined that it is reasonable in relation to the basic financial statements taken as
a whole.
Disclosures - The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. Management has corrected all such misstatements. In addition, none of the misstatements
detected as a result of audit procedures and corrected by management were material, either individually or
in the aggregate, to each opinion unit’s financial statements taken as a whole.
Professional standards require us to accumulate all known and likely uncorrected misstatements identified
during the audit, other than those that are trivial, and communicate them to the appropriate level of
management. We have no such misstatements to report to the City Council.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor’s report. We are pleased to report that no such disagreements arose during the
course of our audit.
Management Representations
We have requested certain representations from management that are included in a management
representation letter dated December 19, 2024.
3
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves
application of an accounting principle to the City’s financial statements or a determination of the type of
auditor’s opinion that may be expressed on those statements, our professional standards require the
consulting accountant to check with us to determine that the consultant has all the relevant facts. To our
knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City’s auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
Other Matters
We applied certain limited procedures to the required supplementary information that accompanies and
supplements the basic financial statements. Our procedures consisted of inquiries of management
regarding the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We did not audit the required supplementary information
and do not express an opinion or provide any assurance on the required supplementary information.
We were engaged to report on the supplementary information which accompany the financial statements,
but are not required supplementary information. With respect to this supplementary information, we made
certain inquiries of management and evaluated the form, content, and methods of preparing the
information to determine that the information complies with accounting principles generally accepted in
the United States of America, the method of preparing it has not changed from the prior period, and the
information is appropriate and complete in relation to our audit of the financial statements. We compared
and reconciled the supplementary information to the underlying accounting records used to prepare the
financial statements or to the financial statements themselves.
We were not engaged to report on the Introductory and Statistical Sections which accompany the financial
statements, but are not required supplementary information. Such information has not been subjected to the
auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express
an opinion or provide any assurance on them.
******
This information is intended solely for the use of City Council and management and is not intended to be,
and should not be, used by anyone other than these specified parties.
Pleasant Hill, California
December 19, 2024
4
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
FOR THE YEAR ENDED
JUNE 30, 2024
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CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
For the Year Ended June 30, 2024
Table of Contents
Page
Memorandum on Internal Control ................................................................................................................... 1
Schedule of Significant Deficiencies ....................................................................................................... 3
Schedule of Other Matters ....................................................................................................................... 5
Status of Prior Year Other Matters ........................................................................................................ 11
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1
MEMORANDUM ON INTERNAL CONTROL
To the City Council of
The City of South San Francisco, California
We have audited the basic financial statements of the City of South San Francisco, California, for the year
ended June 30, 2024, and have issued our report thereon dated December 19, 2024. Our opinions on the
basic financial statements and this report, insofar as they relate to the South San Francisco Conference
Center Authority, are based solely on the report of other auditors. In planning and performing our audit
of the basic financial statements of the City as of and for the year ended June 30, 2024, in accordance
with auditing standards generally accepted in the United States of America, we considered the City’s
internal control over financial reporting (internal control) as a basis for designing our audit procedures
that are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal
control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph
and was not designed to identify all deficiencies in internal control that might be material weaknesses or
significant deficiencies and therefore material weaknesses or significant deficiencies may exist that were
not identified. In addition, because of inherent limitations in internal control, including the possibility of
management override of controls, misstatements due to error or fraud may occur and not be detected by
such controls. However, as discussed below, we identified certain deficiencies in internal control that we
consider to be significant deficiencies.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. We
did not identify any deficiencies in internal control that we consider to be material weaknesses.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance. We consider the deficiencies in internal control included on the Schedule of Significant
Deficiencies to be significant deficiencies.
Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we
believe are opportunities for strengthening internal controls and operating efficiency or other
informational items.
Government Auditing Standards require the auditor to perform limited procedures on the City’s response
to the findings identified in our audit and described in the accompanying Schedule of Significant
Deficiencies and Schedule of Other Matters. The City’s responses were not subjected to the other
auditing procedures applied in the audit of the financial statements and, accordingly, we express no
opinion on the responses.
1
This communication is intended solely for the information and use of management, City Council, others
within the organization, and agencies and pass-through entities requiring compliance with Government
Auditing Standards and is not intended to be and should not be used by anyone other than these specified
parties.
Pleasant Hill, California
December 19, 2024
2
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF SIGNIFICANT DEFICIENCIES
2024-01 Trial Balance Review and Analysis During Year-End Close
The year-end financial closing and preparation of the general ledger data should be completed timely and
accurately. The year-end closing procedures should provide enough time for a final analysis and review
of general ledger balances to ensure closing entries were not overlooked.
During the year-end audit, City staff provided twelve post-closing adjustments, some of which were
known at the start of the audit and some that were discovered as the audit progressed, including
corrections to beginning fund balance in two funds of $102,651 and $27,045, correction to increase cash
and investments of $719,980, correction to balance interfund transfers of $30,980, correction to reduce
accounts receivable for a transposition of $270,000, correction to record sewer service charges receivable
of $961,093, entry to record a lease receivable of $1,889,840 that had been issued during the year, and
corrections to revenue of $51,076 and $201,752 recorded in the wrong funds and accounts.
We understand the beginning fund balance issues were due to one entry being posted to beginning fund
balance in error and one entry being posted backward. However, the errors went undetected, until the
general ledger was provided for audit. We understand the significant number of post-closing adjustments
were a byproduct of staff retirements and turnover in the Finance Department that put the analysis of
some activities during the year and the closing procedures behind and did not allow enough time to
complete the analysis of balances prior to providing the general ledger for audit.
When the closing procedures do not include time to analyze fund activity to ensure closing entries are
accurate and not missing, it increases the risk that errors or misstatements may go undetected by staff and
corrections may not be made in a timely manner. In addition, for corrections that were for activities
posted during the fiscal year, it means interim reports provided to City Council or other internal and
external parties may be inaccurate.
The City should develop procedures to ensure that accounts are analyzed throughout the fiscal year and
after the year end close to ensure that all funds are in balance and additional closing entries or corrections
to existing balances are not required prior to providing the general ledger for audit.
Management’s Response:
In order to reduce the risk of missed entries and/or unidentified errors and misstatements, Finance
will investigate the feasibility of implementing additional internal analytical reviews and account
analysis at the end of the fiscal year on a fund level, in order to identify any significant variances
that may indicate potential items to be recorded or adjustments to be made. Additionally, the
city’s finance department will proactively coordinate with various other departments to confirm
all necessary adjustments and amounts have been recognized and recorded, and that any
corrections needed are identified and made in a timely manner.
3
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CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
2024-02 Timely Payment of Disbursements
Payments to vendors should be made timely, usually within thirty to forty-five days of receiving the
related invoice from the vendor.
During the audit we selected 25 disbursements to test for compliance with the City’s Purchasing Policy
and timeliness of the payments. We noted one disbursement in the amount of $229,245 that was paid in
May 2024 for the purchase of information technology equipment that was due in April 2024, and one
disbursement in the amount of $270 that was paid in April 2024 for the purchase of office supplies that
was due in March 2024.
Although both invoices were paid within four days of being received by the Finance Department, we
understand the delay for the first invoice being provided to Finance for payment was due to an
Information Technology staff being on administrative leave and the second payment was delayed in being
provided to Finance due to turnover in mail room staff.
When invoices are not paid timely, it increases the likelihood of late fees from the vendor and increases
the risk that errors or misstatements surrounding the invoice payment may occur.
The City should develop procedures to ensure that all invoices are paid timely, usually within thirty to
forty-five days after being received by the mail room or Department staff, regardless of whether there is
staff turnover.
Management’s Response:
The City acknowledges that two specific invoices went unpaid beyond the invoice due date,
noting that timely payments were hampered due to employee turnover and absences. Overall, the
City intends to work closely with its respective departments to enable greater internal
coordination, thereby ensuring that vital functions within departments are not dependent on solely
one or two people, as well as to overhaul leave procedures to ensure that key personnel are not
simultaneously absent without any backup capacity or staffing. The City also recognizes a need
for departments to have more proactive leave management policies to ensure important, time-
critical functions are planned for in advance of absences and leaves of key employees.
2024-03 Developer Deposits Receivable
Developers often make deposits with the City to pay for project plan check and other fees. As the City
incurs costs related to the project, the deposit payable is reduced. In the event costs incurred exceed the
amount on deposit, the City must bill the developer for the amount due.
We noted the Developer Contributions Special Revenue Fund had an accounts receivable balance of
$1.2m as of June 30, 2024 that is primarily comprised of amounts due from developers related to the cost
of work performed by City staff that exceeded the developer deposit. The majority of that balance is
related to amounts dating from fiscal years 2020 to 2023 and the individual deposits receivable amounts
range from $60 to $108 thousand.
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CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
2024-03 Developer Deposits Receivable (Continued)
We understand that Economic and Community Development staff are working to bill the developers and
determine if the amounts are collectible. When balances due age, the likelihood of collection is reduced.
The City should develop procedures to ensure developers are notified when the deposit may be exhausted
and ensure additional amounts are paid to replenish the deposit in a timely manner. City staff should also
confirm that all applicable developers have been billed for the amounts due and pursue collection.
Management’s Response:
The City acknowledges the shortcoming noted by the auditors regarding developer deposits.
Management is currently overhauling the previous, deposit-based process in which services,
primarily inspections, were performed while deposits were not fully collected or tracked.
Management is currently working on replacing this prior system with a fee-based model in which
there are no longer deposits made, but fees billed and received as part of the regular development
process and approval. This will eliminate the need for tracking deposits specifically as a separate
item and reduce the risk of missed payments and uncollected receivables.
6
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE
The following comment represents new pronouncements taking affect in the next few years. We have
cited them here to keep you informed of developments:
EFFECTIVE FISCAL YEAR 2024/25:
GASB 101 – Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by
updating the recognition and measurement guidance for compensated absences. That objective is
achieved by aligning the recognition and measurement guidance under a unified model and by amending
certain previously required disclosures.
GASB 102 – Certain Risk Disclosures
State and local governments face a variety of risks that could negatively affect the level of service they
provide or their ability to meet obligations as they come due. Although governments are required to
disclose information about their exposure to some of those risks, essential information about other risks
that are prevalent among state and local governments is not routinely disclosed because it is not explicitly
required. The objective of this Statement is to provide users of government financial statements with
essential information about risks related to a government’s vulnerabilities due to certain concentrations or
constraints.
This Statement defines a concentration as a lack of diversity related to an aspect of a significant inflow of
resources or outflow of resources. A constraint is a limitation imposed on a government by an external
party or by formal action of the government’s highest level of decision-making authority. Concentrations
and constraints may limit a government’s ability to acquire resources or control spending.
This Statement requires a government to assess whether a concentration or constraint makes the primary
government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the
risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event
or events associated with a concentration or constraint that could cause the substantial impact have
occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date
the financial statements are issued.
If a government determines that those criteria for disclosure have been met for a concentration or
constraint, it should disclose information in notes to financial statements in sufficient detail to enable
users of financial statements to understand the nature of the circumstances disclosed and the
government’s vulnerability to the risk of a substantial impact. The disclosure should include descriptions
of the following:
•The concentration or constraint.
•Each event associated with the concentration or constraint that could cause a substantial impact if
the event had occurred or had begun to occur prior to the issuance of the financial statements.
•Actions taken by the government prior to the issuance of the financial statements to mitigate the
risk.
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CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
EFFECTIVE FISCAL YEAR 2025/26:
GASB 103 – Financial Reporting Model Improvements
The objective of this Statement is to improve key components of the financial reporting model to enhance
its effectiveness in providing information that is essential for decision making and assessing a
government’s accountability. This Statement also addresses certain application issues.
Management’s Discussion and Analysis
This Statement continues the requirement that the basic financial statements be preceded by
management’s discussion and analysis (MD&A), which is presented as required supplementary
information (RSI). MD&A provides an objective and easily readable analysis of the government’s
financial activities based on currently known facts, decisions, or conditions and presents comparisons
between the current year and the prior year. This Statement requires that the information presented in
MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial
Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long-Term
Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions. Furthermore, this
Statement stresses that the detailed analyses should explain why balances and results of operations
changed rather than simply presenting the amounts or percentages by which they changed. This Statement
emphasizes that the analysis provided in MD&A should avoid unnecessary duplication by not repeating
explanations that may be relevant to multiple sections and that “boilerplate” discussions should be
avoided by presenting only the most relevant information, focused on the primary government. In
addition, this Statement continues the requirement that information included in MD&A distinguish
between that of the primary government and its discretely presented component units.
Unusual or Infrequent Items
This Statement describes unusual or infrequent items as transactions and other events that are either
unusual in nature or infrequent in occurrence. Furthermore, governments are required to display the
inflows and outflows related to each unusual or infrequent item separately as the last presented flow(s) of
resources prior to the net change in resource flows in the government-wide, governmental fund, and
proprietary fund statements of resource flows.
Presentation of the Proprietary Fund Statement of Revenues, Expenses, and Changes in Fund Net
Position
This Statement requires that the proprietary fund statement of revenues, expenses, and changes in fund
net position continue to distinguish between operating and nonoperating revenues and expenses.
Operating revenues and expenses are defined as revenues and expenses other than nonoperating revenues
and expenses. Nonoperating revenues and expenses are defined as (1) subsidies received and provided,
(2) contributions to permanent and term endowments, (3) revenues and expenses related to financing, (4)
resources from the disposal of capital assets and inventory, and (5) investment income and expenses.
8
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 103 – Financial Reporting Model Improvements (Continued)
In addition to the subtotals currently required in a proprietary fund statement of revenues, expenses, and
changes in fund net position, this Statement requires that a subtotal for operating income (loss) and
noncapital subsidies be presented before reporting other nonoperating revenues and expenses. Subsidies
are defined as (1) resources received from another party or fund (a) for which the proprietary fund does
not provide goods and services to the other party or fund and (b) that directly or indirectly keep the
proprietary fund’s current or future fees and charges lower than they would be otherwise, (2) resources
provided to another party or fund (a) for which the other party or fund does not provide goods and
services to the proprietary fund and (b) that are recoverable through the proprietary fund’s current or
future pricing policies, and (3) all other transfers.
Major Component Unit Information
This Statement requires governments to present each major component unit separately in the reporting
entity’s statement of net position and statement of activities if it does not reduce the readability of the
statements. If the readability of those statements would be reduced, combining statements of major
component units should be presented after the fund financial statements.
Budgetary Comparison Information
This Statement requires governments to present budgetary comparison information using a single method
of communication—RSI. Governments also are required to present (1) variances between original and
final budget amounts and (2) variances between final budget and actual amounts. An explanation of
significant variances is required to be presented in notes to RSI.
How the Changes in this Statement Will Improve Financial Reporting
The requirements for MD&A will improve the quality of the analysis of changes from the prior year,
which will enhance the relevance of that information. They also will provide clarity regarding what
information should be presented in MD&A.
The requirements for the separate presentation of unusual or infrequent items will provide clarity
regarding which items should be reported separately from other inflows and outflows of resources.
The definitions of operating revenues and expenses and of nonoperating revenues and expenses will
replace accounting policies that vary from government to government, thereby improving comparability.
The addition of a subtotal for operating income (loss) and noncapital subsidies will improve the relevance
of information provided in the proprietary fund statement of revenues, expenses, and changes in fund net
position.
The requirement for presentation of major component unit information will improve comparability.
The requirement that budgetary comparison information be presented as RSI will improve comparability,
and the inclusion of the specified variances and the explanations of significant variances will provide
more useful information for making decisions and assessing accountability.
9
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
EFFECTIVE FISCAL YEAR 2026/27:
GASB 104 – Disclosure of Certain Capital Assets
State and local governments are required to provide detailed information about capital assets in notes to
financial statements. GASB Statement No. 34, Basic Financial Statements—and Management’s
Discussion and Analysis—for State and Local Governments, requires certain information regarding
capital assets to be presented by major class. The objective of this Statement is to provide users of
government financial statements with essential information about certain types of capital assets.
This Statement requires certain types of capital assets to be disclosed separately in the capital assets note
disclosures required by Statement 34. Lease assets recognized in accordance with GASB Statement No.
87, Leases, and intangible right-to-use assets recognized in accordance with GASB Statement No. 94,
Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be
disclosed separately by major class of underlying asset in the capital as-sets note disclosures. Subscription
assets recognized in accordance with GASB Statement No. 96, Subscription-Based Information
Technology Arrangements, also should be separately disclosed. In addition, this Statement requires
intangible assets other than those three types to be disclosed separately by major class.
This Statement also requires additional disclosures for capital assets held for sale. A capital asset is a
capital asset held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it
is probable that the sale will be finalized within one year of the financial statement date. Governments
should consider relevant factors to evaluate the likelihood of the capital asset being sold within the
established time frame. This Statement requires that capital assets held for sale be evaluated each
reporting period. Governments should disclose (1) the ending balance of capital assets held for sale, with
separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the
carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major
class of asset.
How the Changes in This Statement Will Improve Financial Reporting
The requirements of this Statement will improve financial reporting by providing users of financial
statements with essential information about certain types of capital assets in order to make informed
decisions and assess accountability. Additionally, the disclosure requirements will im-prove consistency
and comparability between governments.
10
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
STATUS OF PRIOR YEAR
OTHER MATTERS
2023-01 Timely Escrow Retention Account Reconciliations
Certain arrangements with construction contract vendors require that the City deposit the retentions
payable into an escrow account. At the end of the project, the retention is then released to the vendor and
withdrawn from the account. The balance in the escrow account should be recorded in the general ledger
and agree to the balance of the retention payable.
The City had five escrow accounts recorded in the general ledger when we started the audit. After we
asked for the associated June 2023 bank statements and account reconciliations in October 2023, City
staff determined that transactions in four of the accounts had not been recorded in the general ledger and
the balances did not agree to the retentions payable.
One account had been closed in December 2022 when the retention was released to the vendor, but the
balance in the general ledger provided for audit was $244,715, and one account had been closed in June
2023, but the balance in the general ledger provided for audit was $434,324. In addition, two other
accounts required adjustments to the cash and retentions payable in the amounts of $258 and $1,401.
Although we understand that Finance staff attempted to obtain the retention account information from
other departments well before the year-end closing, the final information was not provided to the Finance
Department until October 2023 and the final reconciliation and adjustment was completed after the year-
end audit began. We also understand that the Finance department performs these reconciliations on an
annual basis and relies upon other departments to notify Finance when retentions are released and to
provide the escrow account statements.
When bank account activity is not reconciled to the general ledger and recorded in a timely manner, errors
or unauthorized transactions could go undetected. And, when retention escrow account activity is not
recorded in the general ledger, the cash and retentions payable balances could be over- or understated.
The City should develop procedures to ensure that the escrow account statements are provided to the
Finance Department throughout the fiscal year and when accounts are opened and closed, and the City
should consider adjusting the balance in the general ledger on a more frequent basis, such as monthly or
quarterly.
Current Status:
Implemented.
11
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
STATUS OF PRIOR YEAR
OTHER MATTERS
2023-02 Timely Journal Entry Posting
Journal entries should be prepared and reviewed in a timely manner for the period in which the entry is to
be posted, in order to keep accounts up to date with the current information. Generally, journal entries
should be posted within 30-45 days of the transaction. In addition, to have a complete audit trail of the
journal entry process, the dates of preparation and review should be documented for all journal entries.
And, the post date of journal entries should normally be the date when the transactions occurred.
We selected forty journal entries for testing of controls over the journal entry process and supporting
documentation and noted 13 of the journal entries were prepared and posted to the general ledger more
than a month after the activity of the transaction took place. Although once the journal entries were
prepared, they were reviewed and approved in a timely manner, the posting dates of the journal entries
ranged from two to four months after the transaction dates.
Update for June 30, 2024:
We again selected forty journal entries for testing and noted 15 were prepared and posted to the general
ledger more than thirty days after the activity of the transaction took place. Although once the journal
entries were prepared, they were reviewed and approved in a timely manner, the posting dates of the
journal entries ranged from two to six months after the transaction dates. We understand the delays were
due to staff turnover and other tasks being considered a higher priority.
Without the timely preparation, review and approval of journal entries, there is an increased risk of errors
going undetected and inaccurate interim reporting.
The City should develop procedures to ensure that all journal entries are prepared, reviewed, approved
and posted to the general ledger in a timely manner (generally within 30-45 days of the date of activity).
Current Status:
The City agrees that the journal entries should be prepared and posted to General Ledger within
reasonable time. Due to significant staff turnover in FY 2023-24, City is aware of posting delays
and have implemented measures to have other staff to help with the review and approval.
12
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
STATUS OF PRIOR YEAR
OTHER MATTERS
2023-03 Unrecorded Loan Receivable
Loans issued by the City to outside agencies should be recorded in the general ledger.
During our review of the City Council minutes for fiscal year 2023, one action item mentioned a prior
loan to a nonprofit agency and we noted that the loan was not recorded in the general ledger and was not
included in the City’s loans inventory listing.
City staff determined that the loan in the amount of $100,000 had been expensed when the loan was
issued in fiscal year 2018.
Although the loan has a forgiveness provision and the City historically offsets such loans with an
allowance for collectability, which means the net impact on the general ledger is zero, the City should
develop procedures to ensure that all loans are recorded in the general ledger as a receivable when issued.
Current Status:
The City agrees with this finding. The loan receivable happened in 2018 and our Economic and
Community Development Department (ECD) had experienced a high staff turnover. Finance will
review all the outstanding loans with ECD staff to ensure that all the loans receivable that have a
forgivable clause will be reflected properly in the general ledger.
13
CITY OF SOUTH SAN FRANCISCO
MEMORANDUM ON INTERNAL CONTROL
STATUS OF PRIOR YEAR
OTHER MATTERS
2023-04 Develop Policy for Processing Terminated Employees
The City should process terminated employees in a timely manner. This includes terminating the
employee from both the payroll and general ledger systems upon issuance of their last check, or shortly
thereafter.
We selected twenty terminated employees for testing of proper and timely cutoff in the City’s computer
system and noted seven were not terminated from the payroll system from four months to up to four years
after their last check date, as follows:
Termination
Date
Last Check
Date
10/14/2022 11/21/2018
11/28/2022 7/28/2022
1/5/2023 3/18/2022
2/17/2023 8/26/2021
2/17/2023 10/7/2021
3/31/2023 7/16/2020
3/31/2023 9/9/2021
The majority of the employees were part-time seasonal employees, and the department did not determine
they would be separated from employment until fiscal year 2023. And, although we understand the City’s
departmental staff like the flexibility of being able to utilize the employees for special events, keeping
inactive employees in the payroll and accounting system for extended periods of time could lead to
unauthorized payroll payments or unintended access to the City’s accounting system.
We also understand the City’s payroll system does not have an option for deactivating employees, so
seasonal employees will remain active in the system until the department submits a Personnel Action
Form (PAF) to the Human Resources department to terminate them. Therefore, the City should work to
develop a policy to define a reasonable timeframe for which employees may be inactive in the system
before they are terminated.
Current Status:
Implemented.
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