HomeMy WebLinkAboutReso 14-2020 (20-30)City of South San Francisco P.O. Box 711 (City Hall,
400 Grand Avenue)
South San Francisco, CA
City Council
Resolution: RES 14-2020
File Number: 20-30 Enactment Number: RES 14-2020
RESOLUTION ACKNOWLEDGING RECEIPT OF THE FISCAL
YEAR 2018-19 AUDITED FINANCIAL STATEMENTS,
INCLUDING THE COMPREHENSIVE ANNUAL FINANCIAL
REPORT AND APPROVING BUDGET AMENDMENT 20.027.
WHEREAS, the Budget Standing Committee accepted the Fiscal Year ("FY") 2018-19 year-end
financial results on January 6, 2019; and
WHEREAS, the City of South San Francisco's independent auditor opined that that the City's financial
statements present fairly, in all material respects, the City's financial position; and
WHEREAS, the Memorandum on Internal Control indicated that there were no findings in the auditor's
review of the City's internal controls; and
WHEREAS, the City's FY 2018-19 audited financial statements affirm prudent financial stewardship;
and
WHEREAS, Fiscal Year (FY) 2018-19 concluded on June 30, 2019; and
WHEREAS, staff recommends that the City Council authorize the transfer and appropriation of
$10,900,000 of the General Fund surplus to the City's Infrastructure Reserve to support future
infrastructure needs; and
WHEREAS, staff further recommends that the City Council authorize the transfer and appropriation of
$100,000 of the General Fund surplus to the Summer Jobs for Youth Program; and
WHEREAS, staff further recommends that the City Council authorize the transfer and appropriation of
$100,000 of the General Fund surplus to the 2020 Census Outreach Program.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of South San Francisco does
hereby:
1. Accept the financial results for the fiscal year ended June 30, 2019.
2. Accept the FY 2018-19 audited financial statements attached herein as Exhibit A.
3. Approve Budget Amendment 20.027, which is the transfer and appropriation of $11.1
million of General Fund surplus as detailed above.
City of South San Francisco Page 1
File Number. 20-30
Enactment Number. RES 14-2020
At a meeting of the City Council on 1/22/2020, a motion was made by Councilmember Nicolas, seconded by
Vice Mayor Addiego, that this Resolution be approved. The motion passed.
Yes: 5 Mayor Garbarino, Vice Mayor Addiego, Councilmember Nagales, Councilmember
Nicolas, and Councilmember Matsumoto
4 It. vL
Attest by
osa Govea Acosta, City Clerk
City of South San Francisco Page 2
COMPREHENSIVE ANNUAL FINANCIAL REPORT
CITY OF
SOUTH SAN FRANCISCO
CALIFORNIA
YEAR ENDED JUNE 30, 2019
Exhibit A
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2019
Prepared by:
Department of Finance
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CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Comprehensive Annual Financial Report
For the Year Ended June 30, 2019
Table of Contents
Page
INTRODUCTORY SECTION
Table of Contents ............................................................................................................................................... i
Letter of Transmittal ......................................................................................................................................... v
Certificate of Achievement for Excellence in Financial Reporting ................................................................ ix
Organization Chart ............................................................................................................................................ x
City Council and Directory of City Officials .................................................................................................. xi
FINANCIAL SECTION
Independent Auditor's Report ...................................................................................................................... 1
Management’s Discussion and Analysis ....................................................................................................... 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position .................................................................................................................. 25
Statement of Activities ...................................................................................................................... 26
Fund Financial Statements:
Major Governmental Funds:
Balance Sheet ................................................................................................................................ 30
Reconciliation of Governmental Fund Balances to Net Position of Governmental Activities .... 32
Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................... 34
Reconciliation of the Net Change in Fund Balances Total Governmental Funds with
the Statement of Activities ........................................................................................................ 36
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual –
Budgetary Basis:
General Fund ....................................................................................................................... 37
Low and Moderate Income Housing Assets ....................................................................... 38
Major Proprietary Funds:
Statement of Net Position .............................................................................................................. 40
Statement of Revenues, Expenses, and Changes in Fund Net Position ........................................ 41
Statement of Cash Flows ............................................................................................................... 42
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CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Comprehensive Annual Financial Report
For the Year Ended June 30, 2019
Table of Contents
Page
FINANCIAL SECTION (Continued)
Fiduciary Funds:
Statement of Fiduciary Net Position ............................................................................................. 44
Statement of Changes in Fiduciary Net Position .......................................................................... 45
Notes to Basic Financial Statements ...................................................................................................... 47
Required Supplementary Information:
Schedule of Changes in Net Pension Liability and Related Ratios-
Miscellaneous Plan .............................................................................................................. 92
Schedule of Contributions – Miscellaneous Plan .......................................................................... 93
Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan ........................ 94
Schedule of Contributions – Safety Plan ....................................................................................... 95
Schedule of Changes in the Net OPEB Liability and Related Ratios ........................................... 96
Schedule of Contributions – Retiree Healthcare OPEB Plan ........................................................ 97
Notes to Schedule of Employer Contributions .............................................................................. 97
Supplementary Information:
General Fund:
Combining Balance Sheets ............................................................................................................. 102
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balances ..................................................................................................................... 103
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balance Budget and Actual - (Non GAPP Legal Basis) ........................................... 104
Major Governmental Funds Other Than the General Fund and Special Revenue Funds:
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
Capital Improvement Capital Projects Fund (Non GAAP Legal Basis) .................................... 108
East of 101 Sewer Impact Fees Capital Projects Fund (Non GAAP Legal Basis) ................ 109
East of 101 Traffic Impact Fees Capital Projects Fund (Non GAAP Legal Basis) ............... 110
Child Care Impact Fees Capital Projects Fund (Non GAAP Legal Basis) ............................ 111
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CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Comprehensive Annual Financial Report
For the Year Ended June 30, 2019
Table of Contents
Page
FINANCIAL SECTION (Continued)
Developer Deposits Capital Projects Fund (Non GAAP Legal Basis) .................................. 112
Capital Infrastructure Reserve Fund (Non GAAP Legal Basis) ............................................ 113
Non-major Governmental Funds:
Combining Balance Sheet ............................................................................................................... 118
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances ..................................................................................................................... 122
Budgeted Non-major Government Funds:
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balances – Budget and Actual ................................................................................... 126
Internal Service Funds:
Combining Statement of Net Position ............................................................................................ 136
Combining Statement of Revenues, Expenses and Changes in Fund Net Position ....................... 137
Combining Statement of Cash Flows ............................................................................................. 138
Fiduciary Funds:
Statement of Changes in Assets and Liabilities – Agency Fund .................................................. 140
STATISTICAL SECTION
Net Position by Component – Last Ten Fiscal Years .................................................................... 143
Changes in Net Position - Last Ten Fiscal Years ........................................................................... 144
Fund Balances of Governmental Funds - Last Ten Fiscal Years ................................................... 148
Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ................................ 150
Assessed Value of Taxable Property - Last Ten Fiscal Years ....................................................... 152
Direct and Overlapping Governments - Property Tax Rates
Last Ten Fiscal Years ................................................................................................................ 153
Principal Property Taxpayers – Current Year and Nine Years Ago .............................................. 154
Twenty Largest Taxable Property Owners for Merged RDA Project Area .................................. 155
Property Tax Levies and Collections – Last Ten Fiscal Years ...................................................... 156
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CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Comprehensive Annual Financial Report
For the Year Ended June 30, 2019
Table of Contents
Page
STATISTICAL SECTION (Continued)
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................ 157
Computation of Direct and Overlapping Debt ............................................................................... 158
Computation of Legal Bonded Debt Margin ................................................................................. 159
Revenue Bond Coverage Sewer Rental Enterprise Fund – Last Ten Fiscal Years ....................... 160
Sewer Debt Service Coverage Sewer Rental Enterprise Fund – Last Five Fiscal Years .............. 161
Redevelopment Pledged Revenue Coverage – Last Seven Fiscal Years....................................... 162
Demographic and Economic Statistics – Last Ten Fiscal Years ................................................... 163
Principal Employers – Current Year and Nine Years Ago ............................................................ 164
Full-Time Equivalent City Governmental Employees by Function – Last Ten Fiscal Years ....... 165
Operating Indicators by Function/Program – Last Five Fiscal Years ............................................ 166
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ......................................... 167
Miscellaneous Information – Last Three Fiscal Years .................................................................. 168
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Citizens of South San Francisco
City Council
Richard Garbarino, Mayor
Mark Addiego, Vice Mayor
Karyl Matsumoto, Councilmember
Mark Nagales, Councilmember
Buenaflor Nicolas, Councilmember
City Clerk
Rosa Govea Acosta
City Treasurer
Frank Risso
City Manager
Mike Futrell
City Attorney
Sky Woodruff
Assistant to the City
Manager
Christina Fernandez
Administrative Departments Operating Departments
Fire Chief
Jess Magallanes
Public Works Director
Eunejune Kim
Library Director
Valerie Sommer
Capital Projects Director
Jacob Gilchrist
Econ. & Comm. Dev. Dir.
Alex Greenwood
Chief of Police
Jeff Azzopardi
Human Resources Director
Leah Lockhart
Finance Director
Janet Salisbury
Assistant City Manager/
Parks & Recreation Director
Sharon Ranals
Communications Director
Leslie Arroyo Information Technology
Director
Tony Barrera
*As of December 15, 2019
x
City Council & Directory of Officials*
City Council
Richard Garbarino Mayor
Mark Addiego Vice Mayor
Karyl Matsumoto Councilmember
Mark Nagales Councilmember
Buenaflor Nicolas Councilmember
Elected Officials
Rosa Govea Acosta City Clerk
Frank Risso City Treasurer
Appointed Officials
Mike Futrell City Manager
Sharon Ranals Assistant City Manager / Parks & Recreation Director
Janet Salisbury Finance Director
Leslie Arroyo Communications Director
Jeff Azzopardi Chief of Police
Tony Barrera Information Technology Director
Jacob Gilchrist Capital Projects Director
Alex Greenwood Economic & Community Development Director
Leah Lockhart Human Resources Director
Jess Magallanes Fire Chief
Eunejune Kim Public Works Director
Valerie Sommer Library Director
Budget Subcommittee
Mark Addiego
Buenaflor Nicolas
*As of December 15, 2019
xi
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INDEPENDENT AUDITOR’S REPORT
Honorable Members of the City Council
City of South San Francisco, California
Report on Financial Statements
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, 2019, and the related notes to the financial statements,
which collectively comprise the City’s basic financial statements as listed in the Table of Contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of the
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. The financial statements
of the Authority were audited by other auditors, whose report 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. 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. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
We did not audit the discretely presented component unit financial statements of the South San Francisco
Conference Center Authority (Authority), which represents 1%, 2%, and 2%, respectively, of the assets, net
position, and revenue of the primary government.
Those statements were audited by other auditors whose report 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.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the City’s preparation and fair presentation of the
financial statements 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, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
1
Opinions
In our opinion, based on our audit and the 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 aggregate discretely presented component unit, each major fund, and the aggregate
remaining information of the City as of June 30, 2019, 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.
Emphasis of Matter
Management adopted the provisions of the following Governmental Accounting Standards Board Statement,
which became effective during the year ended June 30, 2019:
Governmental Accounting Standards Board Statement 88 – Certain Disclosures Related to Debt
including Direct Borrowings and Direct placements. See Note 5 to the financial statements for relevant
disclosures.
The emphasis of these matters does not constitute a modification of our opinion.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that 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, 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.
Other 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 Introductory Section, Supplemental Information, and
Statistical Section as listed in the Table of Contents are presented for purposes of additional analysis and are not
required parts of the basic financial statements.
2
The Supplemental 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 Supplemental Information is fairly stated, in all material respects,
in relation to the basic financial statements as a whole.
The Introductory and Statistical Sections have 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 18, 2019
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 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 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 18, 2019
3
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Government Accounting Standards Board Statement 34 (GASB 34) requires the City of South
San Francisco to provide an overview of its financial activities for the fiscal year. Please read
this in conjunction with the accompanying Transmittal Letter and Basic Financial Statements.
FISCAL YEAR (FY) 2018-19 FINANCIAL HIGHLIGHTS
Summary:
The Fiscal Year 2018-19 financials reflect the continuation of a robust economy and
development climate in South San Francisco. The General Fund, excluding transfers, generated
an operating surplus of $31.3 million; this surplus includes the 2016 voter-approved Measure W
half-cent transactions and use tax collection of $12.6 million.
General Fund revenues (excluding operating transfers in) increased by $14.1million from the
prior year, representing a 11.9% increase. Much of the revenue growth stemmed from increases
in the top three tax categories (property, sales, and transient occupancy), along with an increase
in interest and rentals. Demand for residential and non-residential development in South San
Francisco remained high, which was observed in the record $15.4 million collection in licenses
and permits fees.
As in years past, the General Fund reserves were fully funded in accordance with the City’s
Reserves Policy, which follows best practices as recommended by the Government Finance
Officers’ Association (GFOA).
City-wide financial highlights of the year include the following:
Total Net Position for Governmental Activities in FY 2018-19 increased by $54 million in
comparison to prior year (from $221 million to $275 million). This increase was driven not
only by increases in taxes, but also across all program revenues (i.e., service charges and
operating grants and contributions).
Net pension liability remained fairly static at $182.7 million, representing a nominal decrease
of approximately $172,000 from prior year. The stasis was largely a result of no radical
changes in CalPERS’s actuarial assumptions; current year assumption changes were limited
to a small reduction of assumed inflation rate from 2.75% to 2.50%, which nominally
worked in the City’s favor in terms of calculating the City’s net pension liability.
Sales tax revenues increased from $28.7 million in FY 2017-18 to $32.3 million in FY 2018-
19. While a healthy increase of 12.3%, reflective the City’s strong economy, it was a slight
softening versus prior year’s increase of 17.4%.
Revenue from licenses and permits for Governmental Funds continued to increase from
$14.7 million to $15.4 million, indicative of the City’s notable and prudent investments to
strengthening development in the area. South San Francisco continues to see unprecedented
levels of new construction, especially in the East of 101 area along with high density
residential in the downtown area.
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
OVERVIEW OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT
This Comprehensive Annual Financial Report is in six parts:
1) The Introductory Section, which includes the Transmittal Letter and general information;
2) Management’s Discussion and Analysis (this part);
3) The Basic Financial Statements, which include the Government-wide and the Fund
Financial Statements, along with the notes accompanying these statements;
4) Required Supplementary Information and the accompanying notes;
5) Other Supplementary Information including combining statements for non-major
governmental funds, internal service funds, other budgetary information, and a fiduciary
statement of changes in assets and liabilities; and
6) The Statistical Section.
Basic Financial Statements
The Basic Financial Statements are comprised of the City-wide Financial Statements and the
Fund Financial Statements. These two sets of financial statements provide two different views of
the City’s financial activities and financial position.
The City-wide Financial Statements provide a longer-term view of the City’s activities as a
whole, and consist of the Statement of Net Position and the Statement of Activities. The
Statement of Net Position provides information about the financial position of the City as a
whole, including all its capital assets and long-term liabilities on the full accrual basis, similar to
the basis used by corporations. The Statement of Activities provides information about all the
City’s revenues and all its expenses, also on the full accrual basis, with the emphasis on
measuring net revenues or expenses of each the City’s programs. The Statement of Activities
provides a detailed explanation of the change in net 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 activities of the City as a whole.
The Fund Financial Statements report the City’s operations in more detail than the government-
wide statements and focus primarily on the short-term activities of the City’s General Fund and
other Major Funds. The Fund Financial Statements measure only current revenues, expenditures,
and fund balances; they exclude capital assets, long-term debt and other long-term amounts.
Major Funds account for the major financial activities of the City and are presented individually,
while the activities of Non-major funds are presented in summary, with subordinate schedules
presenting the detail for each of these other funds. Major Funds are explained below.
The fiduciary statements provide financial information about the activities of Non-Obligated
Assessment Districts, for which the City acts solely as agent.
6
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Note 1 to the Basic Financial Statements provides a summary of the City’s significant
accounting policies, fund categories, and fund types.
City-wide Financial Statements
The Statement of Net Position and the Statement of Activities present information about the
following:
Governmental activities - All of the City’s basic services are considered to be governmental
activities, including general government, fire, police, public works, parks and recreation,
library, and economic and community development. These services are supported by general
City revenues such as taxes, and by specific program revenues from grants, contributions,
and fees.
The City’s governmental activities also include the City of South San Francisco Capital
Improvements Financing Authority, as the City Council also governs this entity.
Business-type activities - All the City’s enterprise activities are reported here, including
wastewater treatment, parking, and storm water management. Unlike governmental services,
user fees fully support most of these services.
Component Unit - The City of South San Francisco Conference Center Authority comprises
the component unit. The Authority serves the City and other interests and it has a governing
body separate from the City Council.
Citywide financial statements are prepared on the accrual basis, which means they measure the
flow of all economic resources of the City as a whole.
Fund Financial Statements
The Fund Financial Statements provide detailed information about each of the City’s most
significant funds, called Major Funds. The concept of major funds, and the determination of
which are major funds, was established by GASB Statement 34 and replaces the concept of
combining like funds and presenting them in total. Instead, each Major Fund is presented
individually, with all Non-major Funds summarized and presented only in a single column.
Subordinate schedules present the detail of these Non-major funds. Major Funds present the
major activities of the City for the year, and may change from year to year as a result of changes
in the pattern of City’s activities. Fund Financial Statements include governmental, enterprise
and internal service funds as discussed below.
Governmental Fund Financial Statements are prepared on the modified accrual basis, which
mean they measure only current financial resources and uses. Capital assets and other long-lived
assets, along with long-term liabilities, are not presented in the Governmental Fund Financial
Statements.
7
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Enterprise and Internal Service Fund financial statements are prepared on the full accrual basis,
as in the past, and include all their assets and liabilities, current and long-term.
Since the City’s Internal Service Funds provide goods and services only to the City’s
governmental and business-type activities, their activities are reported only in total at the Fund
level. Internal Service Funds may not be Major Funds because their revenues are derived from
other City Funds. These revenues are eliminated in the citywide financial statements and any
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 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 2018-19 are presented against FY 2017-18.
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 deferred outflows of resources exceed the total liabilities and
deferred inflow of resources as of June 30, 2019 for governmental activities:
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Governmental Net Position
Table 1
Governmental Net Position at June 30
(In Millions)
The total net position for Governmental Activities increased by $54 million in FY 2018-19
compared to the prior year, reflecting significant increases in assets, primarily in cash and
investments. The increase in assets reflects the continued growth in the local economy,
comprised of robust development within the area. Pursuant to GASB 75 requirements, the City,
as in the prior year, recognized the full OPEB liability of $60.6 million. The City’s net pension
liability remained flat with a nominal decrease of $172,000 to $182.7 million from prior year’s
liability of $182.9 million.
2019 2018
Cash and investments 195.4$ 146.6$
Other assets 36.6 35.9
Capital assets 272.1 255.7
Total assets 504.1 438.2
Total outflows of resources 32.4 44.0
Total outflow of resources 32.4 44.0
Long‐term debt outstanding 5.3 9.1
Other liabilities 253.9 250.0
Total liabilities 259.2 259.1
Deferred inflows of resources 2.2 2.0
Total deferred inflow of resources 2.2 2.0
Net po sition:
Net investment in capital assets 271.3 254.6
Restricted 128.7 96.3
Unrestricted (124.9) (129.8)
Total net position 275.1$ 221.1$
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
The following table shows the changes in net position for governmental activities:
Table 2
Program Revenue and Expense Comparison in Governmental Activities
(In Millions)
2018‐19 2017‐18
Revenues
Program revenues:
Charges for services 62.7$ 52.9$
Operating grants and contributions 12.1 5.8
Capital grants and contributions 1.6 2.5
Total program revenues 76.4$ 61.2$
General revenues:
Taxes:
Property taxes 33.5$ 29.6$
Sales taxes 31.8 28.4
Transient occupancy taxes 17.1 14.0
Other taxes 9.5 10.3
Property taxes in lieu 7.2 6.4
Investment earnings 4.8 1.1
Miscellaneous 8.6 5.2
Extraordinary Item (0.5) (7.2)
Total general revenues 112.0$ 87.8$
Total revenues 188.4$ 149.0$
Expenses
General government 12.1$ 12.5$
Fire department 32.0 30.3
Police department 33.0 30.7
Public works department 20.4 18.4
Recreation and community development 18.0 17.2
Library 6.2 5.9
Economic and community development 10.6 10.1
Interest on long‐term debt ‐ ‐
Total expenses 132.3$ 125.1$
Excess (deficiency) before transfers 56.1$ 23.9$
Transfers (2.1) (2.0)
Change in net position 54.0 21.9
Net position ‐ beginning 221.1 199.2
Net position ‐ ending 275.1$ 221.1$
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CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Governmental program expenses increased by $7.2 million in comparison to the prior year due
to normal salary increases along with additional expenditures related to professional services.
However, compared to prior year, increases in total revenues significantly outpaced increases in
total expenditures. The almost $32.6 million increase from the prior year total revenues reflect
strong and consistent increases among almost all the revenue categories and absent of any
extraordinary items.
For FY2018-19, revenues for the City’s Governmental Activities Funds are distributed as
follows:
Chart 1
Revenues by Source - Governmental Activities 2018-19
The revenue distribution in the above chart remains relatively unchanged from the prior year,
with no more than a 2% variance in any one category versus the prior year.
Similar to Table 2 above, Table 3 below illustrates the difference between program revenues and
expenses. Program revenues consist of capital and operating grants and contributions and fees
for services. General City revenues, such as property taxes, sales taxes, transient occupancy
taxes, and investment earnings, cover the shortfall between program revenues and program
expenses.
Charges for Services
33%
Operating
Grants and
Contributions
6%
Capital Grants and
Contributions
1%
Property taxes
21%
Sales taxes
17%
Transient
occupancy
taxes 9%
Franchise fees
2%
Other taxes
3%Interest and
rentals 3%
Miscellaneous
5%
11
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Table 3
Net (Expense) Revenue from Services
Governmental Activities
(In Millions)
In FY 2018-19, the net expense for governmental activities decreased from $63.9 million to
$55.8 million, primarily driven by enhanced collections within Public Works department and
significant decreases in general government expenditures.
Business Type Activities
Table 4 below shows that total assets deferred outflows of resources exceed the total liabilities
and deferred inflow of resources as of June 30, 2019 for business-type activities:
`2018‐19 2017‐18
General government (2.8)$ (9.4)$
Fire department (25.9) (24.0)
Police department (30.0) (27.8)
Public works department 17.3 10.8
Recreation and community services (12.8) (11.9)
Library (5.7) (5.4)
Economic and community development 4.1 3.8
Interest on long‐term debt
Total (55.8)$ (63.9)$
12
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Table 4
Business-type Net Position at June 30 (in Millions)
The total net position for business-type activities increased by $7.2 million compared to the prior
year. Total assets increased by $16.3 million, or 10.9%, reflecting increases of capital assets
related to upgrades in the City’s Wastewater Treatment Plant (Wet Weather Digester Project).
However, total liabilities increased by $7.8 million due to debt service on the State Revolving
Fund loan.
2019 2018
Cash and Investments 26.1$ 24.3$
Other assets 0.5 0.5
Capital assets 138.6 124.1
Total assets 165.2 148.9
Deferred outflows related to pension 3.6 4.9
Total Deferred outflow of resources 3.6 4.9
Long‐term liabilities outstanding 33.2 29.3
Other liabilities 34.9 31.0
Total liabilities 68.1 60.3
Deferred inflows related to pension 0.2 0.2
Total deferred inflow of resources 0.2 0.2
Net position:
Net investment in capital assets 100.5 90.1
Restricted ‐ ‐
Unrestricted 0.0 3.2
Total net position 100.5$ 93.3$
13
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Table 5 below shows the changes in net position for business-type activities:
Table 5
Change in Business-type Net Position
(In Millions)
Business-type activity ended the fiscal year with a positive change in its net position by $7.2
million compared to $5.4 million the previous fiscal year. This positive $7.2 million change was
partially attributable to revenues from sanitary sewer service fee rate increases.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds
Governmental funds highlight the City’s near-term inflows, outflows, and balances of spendable
resources. Such information can be helpful in determining the City’s financial status.
Unrestricted fund balance is a major indicator of designated and uncommitted resources
available for spending in future fiscal years.
At June 30, 2019, the City’s governmental funds reported combined fund balances of $185.1
million, an increase of $45.3 million, or 32.4%, compared to the prior year. The General Fund
ending fund balance was $84.9 million, reflecting an increase of $23.6 million, or 38.6%. The
change in fund balance was largely attributable to the continuation of the robust economic
conditions in South San Francisco.
2018‐19 2017‐18
Expenses
Sewer Enterprise 25.7$ 24.4$
Parking District 0.9 1.2
Storm Water 1.2 1.0
Total expenses 27.8 26.6
Revenues
Program Revenues
Charges for Services 25.8 24.2
Operating grants and contributions 6.5 5.8
Total program revenues 32.3 30.0
General revenues
Investment earnings 0.6 0.0
Total general revenues 0.6 0.0
Excess (deficiency) before transfers 5.1 3.4
Transfers 2.1 2.0
Change in net position 7.2 5.4
Net position ‐ beginning (as adjusted) 93.3 87.9
Net position ‐ ending 100.5$ 93.3$
14
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Total governmental fund revenues increased by $31.0 million, from $156.1 million to $187.1
million, with increases among almost all the categories, indicative of the vitality of the local
economy and development environment.
Total governmental fund expenditures increased by $19.7 million, from $120.1 million to
$139.8, or 16.4%, largely stemming from increased Capital Improvement projects vis a vis the
Public Works department. In addition, the City’s personnel costs for salaries and pensions
increased in accordance with negotiated increases and increases in the cost for various benefits,
primarily pensions and healthcare.
Comparison of Final Budgets to Original Adopted Budget
The budget is initially adopted by the City Council in June, based on revenue projections that are
up to date through May. Between May and the end of the fiscal year, there can be major
fluctuations in revenues depending on the economy and/or actions by the State of California.
There can also be significant changes to departmental expenditure budgets to the extent
unforeseen expenses occur. In the Fund Financial Statements, the page titled “Statement of
Revenues, Expenditures, and Changes in Fund Balances Budget and Actual” later in this
document shows the initial adopted and final budgets for the General Fund. Significant changes
between the adopted and final budgets are described below:
15
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Table 6
Comparison of Final Budgets to Original Adopted Budget (in Thousands)
Revenues Original
Budget
Final
Budget Change
Pct
Change
Discussion:
(Items of more than 5% and $100,000 variance)
Property taxes 34,556$ 35,346$ 790$ 2.3% Received Education Revenue Augmentation fund (ERAF)
property tax refund from the County.
Sales taxes 26,935 29,361 2,426 9.0% Amended budget to account for City's consultants
projection of 1/2 cent sales tax in Measure W revenues.
Transient occupancy taxes 15,834 15,834 -
Other taxes 5,833 5,833 -
Franchise Fee 4,000 4,000 -
Intergovernmental 1,473 3,412 1,939 131.6% Reflects the Federal and State Grants that the Library,
Police, Parks and Recreation, and Economic &
Community Development Departments often receives after
the year starts. Additionally, cost reimbursement from
CAL OES for mutual aid provided by the Fire Department.
Interest and rentals 3,059 3,059 -
Licenses and permits 12,072 12,072 -
Charges for services 8,989 9,329 340 3.8% The budget was increased due to anticipated additional
revenue from Fire Services/Ambulance billing.
Fines and forfeitures 619 619 -
Other 178 289 111 62.4% Amended budget in acceptance of donation and partial
reimbursements from Risk Management.
Total 113,548$ 119,154$ 5,606$ 4.9%
Expenditures Original
Budget
Final
Budget Change
Pct
Change
Discussion:
(Items of more than 5% and $100,000 variance)
City Council 280$ 280$ -$
City Clerk 818 818 -
City Treasurer 133 133 -
City Attorney 1,064 1,081 17 1.6%
City Manager 2,959 5,738 2,779 93.9% Accounts for carryover purchase orders for professional
services primarily related to community outreach, General
Plan Update and establishment of Community Facilities
Districts.
Finance 3,022 3,384 362 12.0% Accounts for carryover purchase orders related to
implementation of the new Human Capital Management
System (HCMS), Updating Policies and Procedures and
Special Tax Consultant-potential CFD.
Non-Departmental 1,072 1,131 59 5.5% Accounts for carryover purchase orders for professional
services related to Grant Writing Services.
Human Resources 1,535 1,780 245 16.0% Accounts for carryover purchase orders for professional
services for recruitment.
Fire 27,712 29,105 1,393 5.0% Accounts for carryover purchase orders primarily for Fire
plan check review services.
Police 29,174 29,254 80 0.3%
Public Works 6,285 6,512 227 3.6% Accounts for carryover purchase orders primarily for
various On-call Professional Services.
Parks and Recreation 16,295 17,103 808 5.0%
Library 5,806 6,150 344 5.9% Accounts for miscellaneous donations and grants received
after the year starts.
Economic and Community
Development
9,009 12,444 3,435 38.1% Accounts for carryover purchase orders for plan review
and building inspection professional services.
Total 105,164$ 114,913$ 9,749$ 9.3%
16
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Analysis of Major Governmental Funds
General Fund
Revenues. In FY 2018-19, total General Fund revenues, excluding transfers in, were $133.8
million, which was $12.4 million, or 10.2 percent over the final amended budget. Total General
Fund expenditures, excluding transfers out, ended FY 2018-19 at $102.5 million, which was
$12.2 million, or 10.7 percent under budget. Overall, including transfers, the General Fund
ended FY 2018-19 with a surplus of $23.7 million, predominantly due to the items discussed
below.
Property tax collections in FY 2018-19 was $38.7 million, which was $3.3 million 9.4% or over
budget. This was mainly due to higher than expected increases in assessed values.
Sales tax revenues, including Measure W, was $2.9 million or 9.9% over budget, which was
indicative of the strong economic base in South San Francisco, where nearly every business
category increased its taxable sales on a year-over-year basis.
Transient occupancy taxes saw a marked $1.3 million or 7.9% increase over budget, representing
a higher than expected demand for lodging within the area.
Permit revenues were $3.3 million over budget, setting an all-time record for a fiscal year,
largely attributable to non-residential development in the East of 101 area and high density
residential development in the downtown area. The increase in revenue also reflect the
continuing effects of City Council’s prior year approval of a comprehensive fee study that
improved the cost recovery rate from 57 to 81 percent.
Charges for services was $2.2 million over budget, largely through higher than expected fee
collection in Developer Contributions, Paramedic Service Fees, and Electric Permit Fees.
The above higher than budgeted revenues offset negative variances for other tax collection ($0.8
million below budget) and intergovernmental revenues ($0.5 million below budget).
Expenditures. General Fund expenditures, excluding transfers out, largely remained within
budget (less than $0.5 million variance). Higher than expected expenditures as a result of multi-
year encumbrances within the Economic and Community Development department ($1.8 million
over budget) were offset by expenditure “savings” as a result of staff vacancies in multiple
departments. Compared to the prior year, General Fund expenditures increased from $101
million to $114.4 million, largely driven by increased cost for necessary professional services in
addition to normal increases in employee salary and benefits.
As of June 30, 2019, the General Fund total fund balance was $85.0 million, which included
$22.6 million in committed reserves, $19.2 million in restricted reserves, and $31.2 million in
unassigned reserves. The unassigned reserves are designated by the City Council based on the
City’s Reserves Policy, which follows best practices from the Government Finance Officers’
Association (GFOA) of between 15-20 percent of General Fund operating revenue. Within the
City’s unassigned reserves, the City Council designated funds for economic contingencies,
potential catastrophe and budget contingencies.
17
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
City Housing Fund
Up until Redevelopment Agencies were abolished in FY 2011-12 by the State of California
under ABX1 26, the City set aside 20% of Redevelopment property taxes to fund the provision
of new affordable housing units, as well as the operation and maintenance of housing stock that
the Redevelopment Agency had already funded. That fund was formerly called the
Low/Moderate Income Housing Fund. With its source of funding (20% of Redevelopment
property tax dollars) abolished, the City Council voted to take on the operations of the former
housing units by becoming the Successor Housing Agency, with activities funded primarily from
the rental revenues received by the City for those City-owned occupied housing units. Any
shortfall between the rents received and the operations and maintenance costs of those housing
units are funded by either one time grants or by the General Fund. Any fund balances will be
held for future housing property maintenance needs.
As of June 30, 2019, the fund balance was $6 million. In FY 2018-19, the City Housing Fund
received for $0.3 million in revenues. The fund had $0.1 million in expenses, the majority of
which was for administrative staff costs to support the City’s Housing Division.
Capital Improvement Fund
The City consolidates and reports its governmental fund-type capital project expenditures in this
fund. Resources consist of transfers from the General Fund, major and non-major funds,
developer impact fees, and gasoline taxes and transportation sales taxes from non-major
governmental funds. Resources also come from federal, state, and local grants, contributions
from other cities, utilities and private developers. Entire capital projects are appropriated in one-
year, but expended over multiple years, with unspent appropriations carried forward year-to-year
until completion.
Developer Impact Fees
In FY 2018-19, commensurate with the robust development climate in South San Francisco, and
to ensure that new development pays its fair share of the impact on the City’s capital and
infrastructure, the City accounted for significant collection of developer impact fees, including
$1.9 million in East of 101 Sewer Impact Fees, $8.8 million in East of 101 Traffic Impact Fees,
$0.9 million in Child Care Impact Fees, and $3.5 million in Oyster Point Interchange Impact
Fees.
Other Governmental Funds
Presented as a group in the Basic Financial Statements, these funds are individually presented as
Supplementary Information.
18
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Enterprise Funds
Sewer Enterprise Fund
The Sewer Enterprise fund reported operating income (before non-operating revenues and
operating transfers) of $5 million in FY 2018-19. Operating revenues increased from $28.3
million to $29.9 million (increase of 5.9%). Operating expenses increased from $23.5 million to
$24.9 million, an increase of $1.4 million or 5.8%, reflecting the impact of increases in employee
compensation along with slight increases in normal expenditures like professional services and
supplies.
Parking District Fund
In FY 2018-19, operating revenues increased from $1.1 million to $1.2 million, principally due
to additional revenues from parking meters, reflecting the City’s investment in smart meter
technology. Operating expenses decreased from $1.3 million to $0.9 million as the prior year’s
expenditures included the purchase and implementation of smart meters. Net position increased
from $13.8 million to $14.1 million, largely driven by lower expenditures.
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, primarily
from a levy on property owners. Transfers in totaled $1.4 million, primarily comprised of $0.6
million from the General Fund and $0.8 from non-major governmental funds. Expenses totaled
just below $1.2 million, which was a $146 thousand or 14% increase from prior year. Much of
the increases were a result of higher supplies cost and depreciation. Net position increased from
$3.0 million to $4.5million, an increase of $1.5 million.
CAPITAL ASSETS
GASB Statement 34 requires the City to add infrastructure to its reportable capital assets.
Infrastructure includes streets, drainage systems, and traffic control and safety devices.
Previously, governments excluded the value of such property from their reports of capital assets.
The City has successfully reported on the depreciated value of all such assets acquired or built
since 1980. The City reports the depreciated book value of other types of capital assets such as
buildings, land, equipment and furniture, on the City-wide Statement of Net Assets. Such
information is summarized below and is more completely detailed in Note 3 to the Basic
Financial Statements. The City depreciates all its capital assets, except land and construction in
progress.
At June 30, 2019, the City had $410.7 million in capital assets, net of depreciation, representing
a sizable increase of $30.9 million from the prior year, largely driven by in progress construction
projects.
19
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
The City’s various capital asset types used in governmental and business-type activities, are
illustrated in Table 7 below:
Table 7
Capital Assets (in Millions) at June 30
2019 2018
Governmental Activities:
Land 67.9$ 67.2$
Buildings and improvements 96.2 94.9
Equipment and vehicles 22.8 21.9
Furniture and fixtures 2.6 2.6
Infrastructure ‐ streets*199.7 195.0
Infrastructure ‐ traffic control devices* 10.8 10.1
Infrastructure ‐ storm drains*8.9 8.9
Construction in progress 35.3 18.0
Less accumulated depreciation (172.1) (162.9)
Totals 272.1$ 255.7$
* Additions during the fiscal year only
Business‐type Activities
Land 0.8$ 0.8$
Buildings and improvements 67.1 66.9
Clean water facilities and transmission line 79.9 75.5
Infrastructure ‐ storm drains 5.6 4.8
Infrastructure ‐ streets 7.3 7.4
Equipment and vehicles 18.5 18.5
Construction in progress 25.1 11.2
Less accumulated depreciation (65.7) (61.0)
Totals 138.6$ 124.1$
Total City 410.7$ 379.8$
20
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
DEBT ADMINISTRATION
Each of the City’s debt issuances is discussed in detail in Note 5 to the Basic Financial
Statements. A summary of the City’s outstanding debt for the past two fiscal years is as follows:
Table 8
Outstanding Debt
(In Millions) at June 30
The increase in Business-type Activities outstanding debt of $4.1 million stems from additional
State Water Resources Board loans.
The largest remaining debt obligations are the following:
- Three loans to the City’s Sewer Enterprise Fund from the State Water Resources
Control Board to finance the expansion of the City’s water quality control plant and
pay for Wet Weather improvements which will improve environmental impacts on
the Bay. Principal and interest repayments commence on the loans upon completion
of the project related to each loan package. The three current loans outstanding
have fixed interest of 2.6%, 2.5% and 2.4% are due in 2022, 2026 and 2028.
Because of the regional benefits and equity interest in these projects, the City of San
Bruno shares in the loan repayments for the first two of the three current loans.
ECONOMIC OUTLOOK AND MAJOR ACCOMPLISHMENTS
The economic outlook and major accomplishments of the City are discussed in the
accompanying Transmittal Letter.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Comprehensive Annual Financial Report is intended to provide readers with a general
overview of the City’s finances. Questions about this report or requests for additional financial
information should be directed to the City of South San Francisco Finance Department, P.O. Box
711, South San Francisco, CA 94083, and phone (650) 877-8512. The City’s website is at
www.ssf.net.
Governmental Activities 2019 2018
Loan payable to Successor Agency 4.8$ 8.3$
Capital leases 0.8 1.1
Total Governmental Activities Outstanding Debt 5.6$ 9.4$
Business‐type Activities
State Water Resources Board loans 35.1$ 30.8$
2005 Sewer Bonds 3.0 3.2
Total Business‐type Activities Outstanding Debt 38.1$ 34.0$
21
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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 from total assets.
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 and the City of South San Francisco
Capital Improvements Financing Authority that is legally separate but a component unit of the City
because it is controlled by the City, which is financially accountable for its 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.
23
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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)$195,442,088 $26,151,985 $221,594,073 $4,399,644
Receivables:
Accounts 11,264,055 445,162 11,709,217 335,440
Accrued interest 1,006,236 118,580 1,124,816
Loans 1,699,277 1,699,277
Deposit 129,101 129,101 14,206
Inventory 372 372
Prepaid items 869,945 869,945
Restricted cash and investments (Note 2)352,222 66 352,288
Internal balances (Note 4A)54,847 (54,847)
Properties held for redevelopment (Note 1N)21,101,948 21,101,948
Capital assets (Note 3):
Nondepreciable 103,254,548 25,883,165 129,137,713 17,500
Depreciable, net accumulated depreciation 168,848,435 112,698,319 281,546,754 3,264,004
Total Assets 504,076,663 165,242,430 669,319,093 8,030,794
DEFERRED OUTFLOW OF RESOURCES
Related to pension (Note 7)28,600,842 3,177,871 31,778,713
Related to OPEB (Note 9)3,823,200 424,800 4,248,000
Total Deferred Outflow of Resources 32,424,042 3,602,671 36,026,713
LIABILITIES
Accounts payable 6,187,567 4,047,423 10,234,990 352,231
Accrued salaries and benefits 1,659,795 1,659,795 61,896
Accrued interest payable 485,800 485,800
Other payable 1,729,185 356,564 2,085,749
Deposits 2,673,535 7,500 2,681,035 312,064
Unearned revenue 902,991 199,636 1,102,627
Accrued insurance losses (Note 11):
Due within one year 712,000 712,000
Due in more than one year 13,739,253 13,739,253
Compensated absences obligation (Note 1L):
Due within one year 4,331,917 501,011 4,832,928
Due in more than one year 2,701,136 43,937 2,745,073
Debt and capital lease obligations (Note 5):
Due within one year 263,838 4,906,394 5,170,232
Due in more than one year 5,334,933 33,211,810 38,546,743
Net OPEB Liability - due in more than one year (Note 9)54,525,600 6,058,400 60,584,000
Net pension liability - due in more than one year (Note 7)164,429,247 18,269,916 182,699,163
Total Liabilities 259,190,997 68,088,391 327,279,388 726,191
DEFERRED INFLOW OF RESOURCES
Related to pension (Note 7)1,746,574 194,064 1,940,638
Related to OPEB (Note 9)489,600 54,400 544,000
Total Deferred Inflow of Resources 2,236,174 248,464 2,484,638
NET POSITION (Note 6)
Net investment in capital assets 271,349,364 100,463,280 371,812,644 3,281,504
Restricted for:
Special revenue projects 37,102,503 37,102,503
Capital projects 61,448,139 61,448,139
Redevelopment and community development activities 19,201,948 19,201,948
Total Restricted Net Position 117,752,590 117,752,590
Unrestricted (114,028,420)44,966 (113,983,454)4,023,099
Total Net Position $275,073,534 $100,508,246 $375,581,780 $7,304,603
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF NET POSITION
JUNE 30, 2019
25
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary Government
Governmental Activities:
General Government $12,139,671 $7,930,983 $1,452,636
Fire 31,986,738 6,052,804
Police 32,994,122 2,351,491 648,796
Public Works 20,425,958 27,811,701 8,301,786 $1,629,730
Parks and Recreation 17,962,298 4,293,474 852,154
Library 6,241,093 105,466 387,914
Economic and Community Development 10,557,116 14,214,991 447,793
Total Governmental Activities 132,306,996 62,760,910 12,091,079 1,629,730
Business-type Activities
Sewer 25,719,049 24,078,076 5,827,480
Parking District 896,994 1,180,538
Storm Water 1,188,182 540,679 625,470
Total Business-type Activities 27,804,225 25,799,293 6,452,950
Total Primary Government $160,111,221 $88,560,203 $18,544,029 $1,629,730
Component Unit
Conference Center $4,198,022 $2,331,740
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 from sale of property
Miscellaneous
Special Item:
Assets transferred from the Successor Agency (Note 13C)
Remittance of land sale proceeds to taxing entities
Transfers (Note 4)
Total general revenues, special item and transfers
Change in Net Position
Net Position - Beginning
Net Position - Ending
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2019
Program Revenues
26
Component Unit
South
San Francisco
Governmental Business-Type Conference
Activities Activities Total Center
($2,756,052)($2,756,052)
(25,933,934)(25,933,934)
(29,993,835)(29,993,835)
17,317,259 17,317,259
(12,816,670)(12,816,670)
(5,747,713)(5,747,713)
4,105,668 4,105,668
(55,825,277)(55,825,277)
$4,186,507 4,186,507
283,544 283,544
(22,033)(22,033)
4,448,018 4,448,018
(55,825,277)4,448,018 (51,377,259)
($1,866,282)
33,446,750 33,446,750
31,843,568 31,843,568
17,091,222 17,091,222 2,243,066
4,469,808 4,469,808
4,995,404 4,995,404
32,200 32,200
7,150,867 7,150,867
4,808,664 633,704 5,442,368 76,759
840,298 840,298
7,799,392 7,799,392 11,575
829,315 829,315
(1,360,906)(1,360,906)
(2,101,222)2,101,222
109,845,360 2,734,926 112,580,286 2,331,400
54,020,083 7,182,944 61,203,027 465,118
221,053,451 93,325,302 314,378,753 6,839,485
$275,073,534 $100,508,246 $375,581,780 $7,304,603
Primary Government
Net (Expenses) Revenues and Changes in Net Position
27
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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 2019. Individual
non-major funds may be found in the Supplemental section.
GENERAL FUND
This fund accounts for resources traditionally associated with government, such as administration, public
safety, library, parks maintenance, and recreation, outside of those accounted for in other funds.
LOW AND MODERATE INCOME HOUSING ASSETS SPECIAL REVENUE FUND
To account for the activities related to the assets assumed by the City as Housing Successor to the
housing activities of the former Redevelopment Agency of the City of South San Francisco.
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction, or improvement of City owned
facilities and infrastructure. Funding comes from the general fund, special revenue funds, grants and fees.
EAST OF 101 SEWER IMPACT FEES CAPITAL PROJECTS FUND
These fees provide new development’s share of new and rehabilitated sewer collection and treatment
facilities to serve the East of Highway 101 area.
EAST OF 101 TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND
These fees are to provide new development’s share of new and expanded roadway and intersection
improvements to serve the East of Highway 101 area.
CHILD CARE IMPACT FEES CAPITAL PROJECTS FUND
These citywide fees provide new development’s share of new and expanded childcare facilities to serve
the childcare needs of working parents.
DEVELOPER DEPOSIT FUND
To account for a deposit by a large corporation for various capital projects the developer agreed to fund.
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).
29
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2019
Low and Moderate East of 101
General Income Capital Sewer
Fund Housing Assets Improvement Impact Fees
ASSETS
Cash and investments (Note 2)$60,775,901 $5,057,889 $9,525 $4,417,241
Receivables:
Accounts 8,581,277 7,550 2,147,656
Accrued interest 274,790 30,572 18,893
Due from Conference Center 53,589
Loans 891,227
Due from other funds (Note 4B)1,100,000
Inventory 372
Prepaid items 39,205
Restricted cash and investments (Note 2)200,000
Properties held for redevelopment (Note 1N)19,201,948
$90,187,877 $5,987,238 $2,196,386 $4,436,134
Total Assets
LIABILITIES
Liabilities:
Accounts payable $2,609,145 $3,122,071
Accrued salaries and benefits 1,659,795
Other payable 65,755 906,455
Deposits 763,563
Unearned revenue 146,436
Due to other funds (Note 4B)1,100,000
Total Liabilities 5,244,694 5,128,526
Fund Balances (Note 6):
Nonspendable 372 39,205
Restricted 19,201,948 5,987,238 $4,436,134
Committed 22,619,868
Assigned 11,881,363
Unassigned 31,239,632 (2,971,345)
Total Fund Balances (Deficits)84,943,183 5,987,238 (2,932,140)4,436,134
Total Liabilities and Fund Balances (Deficits)$90,187,877 $5,987,238 $2,196,386 $4,436,134
See accompanying notes to basic financial statements
CITY OF SOUTH SAN FRANCISCO
Capital Projects Funds
30
East of 101 Capital Other Total
Traffic Child Care Developer Infrastructure Governmental Governmental
Impact Fees Impact Fees Deposit Reserve Fund Funds Funds
$20,493,141 $5,504,200 $10,055 $18,978,469 $47,248,727 $162,495,148
492,055 11,228,538
100,316 32,528 1,856 129,503 230,942 819,400
53,589
808,050 1,699,277
1,100,000
372
39,205
152,222 352,222
1,900,000 21,101,948
$20,593,457 $5,536,728 $11,911 $19,107,972 $50,831,996 $198,889,699
$223,707 $5,954,923
1,659,795
480,000 1,452,210
$2,295 1,907,677 2,673,535
756,555 902,991
1,100,000
2,295 3,367,939 13,743,454
39,577
$20,593,457 $5,536,728 9,616 $19,107,972 47,464,057 122,337,150
22,619,868
11,881,363
28,268,287
20,593,457 5,536,728 9,616 19,107,972 47,464,057 185,146,245
$20,593,457 $5,536,728 $11,911 $19,107,972 $50,831,996 $198,889,699
Capital Projects Funds
31
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2019
Total fund balances reported on the governmental funds balance sheet $185,146,245
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.267,191,425
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.21,770,119
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 (4,845,152)
Deferred outflows related pension 28,600,842
Deferred outflows related to OPEB 3,823,200
Net OPEB liability (54,525,600)
Net pension liability (164,429,247)
Deferred inflows related to OPEB (489,600)
Deferred inflows related to pension (1,746,574)
Non-current portion of compensated absences (5,422,124)
Net position of governmental activities $275,073,534
See accompanying notes to financial statements
32
This Page Left Intentionally Blank
Low and Moderate East of 101
General Income Capital Sewer
Fund Housing Assets Improvement Impact Fees
REVENUES
Property taxes $38,659,657
Sales taxes 32,251,636
Transient occupancy taxes 17,091,222
Franchise Fees 4,469,808
Other taxes 4,995,404
Intergovernmental 2,876,545 $6,641,789
Interest and rentals 4,409,185 $304,949 $100,304
Licenses and permits 15,381,416
Charges for services 11,563,755 1,781,407
Fines and forfeitures 926,729
Other 330,881 850,000
Total Revenues 132,956,238 304,949 7,491,789 1,881,711
EXPENDITURES
Current:
City Council 258,760
City Clerk 770,985
City Treasurer 123,505
City Attorney 961,588
City Manager 2,339,342
Finance 2,789,187
Non-departmental 1,219,533 2,652
Human Resources 1,621,409
Fire 27,572,488
Police 28,482,445
Public Works 5,787,782 25,688,553
Parks and Recreation 16,530,603
Library 5,628,693
Economic and Community Development 8,433,298 95,960 20,276
Other
Debt service:
Principal repayments
Total Expenditures 102,519,618 95,960 25,708,829 2,652
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 30,436,620 208,989 (18,217,040)1,879,059
OTHER FINANCING SOURCES (USES)
Proceeds from sale of property 840,298
Transfers in (Note 4C)4,906,791 15,087,484
Transfers out (Note 4C)(11,995,827)(281,827)
Total Other Financing Sources (Uses)(6,248,738)15,087,484 (281,827)
Net Change in Fund Balances before special items 24,187,882 208,989 (3,129,556)1,597,232
SPECIAL ITEMS
Assets transferred from the
Successor Agency (Note 13C)829,315
Remittance of land sale proceeds (1,360,906)
Net Change in Fund Balances 23,656,291 208,989 (3,129,556)1,597,232
Fund balances (deficits) - July 1 61,286,892 5,778,249 197,416 2,838,902
Fund balances (deficits) - June 30 $84,943,183 $5,987,238 ($2,932,140) $4,436,134
See accompanying notes to financial statements
Capital Projects Funds
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2019
34
East of 101 Capital Other Total
Traffic Child Care Developer Infrastructure Governmental Governmental
Impact Fees Impact Fees Deposit Reserve Fund Funds Funds
$1,937,960 $40,597,617
32,251,636
17,091,222
4,469,808
1,913,308 6,908,712
3,661,259 13,179,593
$533,381 $172,624 $6,371 $683,549 1,020,940 7,231,303
15,381,416
8,304,582 747,845 18,658,070 41,055,659
926,729
6,813,820 7,994,701
8,837,963 920,469 6,371 683,549 34,005,357 187,088,396
258,760
770,985
123,505
961,588
2,339,342
2,789,187
2,652 77,364 1,302,201
1,621,409
4,391 27,576,879
50,847 28,533,292
2,652 73,500 6,907,476 38,459,963
16,530,603
5,628,693
535,856 9,085,390
333,024 333,024
3,464,000 3,464,000
2,652 76,152 11,372,958 139,778,821
8,835,311 844,317 6,371 683,549 22,632,399 47,309,575
840,298
2,236,224 22,230,499
(701,659)(3,161,063)(8,441,345) (24,581,721)
(701,659)(3,161,063)(6,205,121)(1,510,924)
8,133,652 844,317 6,371 (2,477,514)16,427,278 45,798,651
829,315
(1,360,906)
8,133,652 844,317 6,371 (2,477,514)16,427,278 45,267,060
12,459,805 4,692,411 3,245 21,585,486 31,036,779 139,879,185
$20,593,457 $5,536,728 $9,616 $19,107,972 $47,464,057 $185,146,245
Capital Projects Funds
35
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, 2019
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $45,267,060
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 26,003,235
Retirement and adjustment of capital assets (634,406)
Current year depreciation (8,438,645)
Long-Term Debt Payments
Repayment of principal is an expenditure in the governmental funds, but
in the Statement of Net Position the repayment reduces long-term liabilities.
Repayment of principal is added back to fund balance 3,464,000
Accrual of Non-Current Items
of current financial resources and therefore is not reported as revenue or expenditures in
governmental funds (net change):
Compensated absences (383,849)
Net pension liability, deferred outflows and inflows of resources (11,680,328)
Net OPEB liability, deferred outflows and inflows of resources (1,116,480)
Allocation of Internal Service Fund Activity
Internal service funds are used by management to charge the costs of certain activities to
individual funds. The net revenue of the internal service fund is reported with governmental
activities.1,539,496
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $54,020,083
See accompanying notes to financial statements
The amount below included in the Statement of Activities does not require the use
36
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, 2019
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $34,555,659 $35,345,744 $38,659,657 $3,313,913
Sales taxes 26,935,176 29,361,726 32,251,636 2,889,910
Transient occupancy taxes 15,834,000 15,834,000 17,091,222 1,257,222
Franchise fees 4,000,000 4,000,000 4,469,808 469,808
Other taxes 5,833,028 5,833,028 4,995,404 (837,624)
Intergovernmental 1,473,470 3,412,076 2,876,545 (535,531)
Interest and rentals 3,059,459 3,059,459 4,409,185 1,349,726
Licenses and permits 12,072,049 12,072,049 15,381,416 3,309,367
Charges for services 8,988,527 9,328,528 11,563,755 2,235,227
Fines and forfeitures 618,500 618,500 926,729 308,229
Other 178,171 289,171 330,881 41,710
Amounts available for appropriation 113,548,039 119,154,281 132,956,238 13,801,957
Charges to appropriations (outflows):
City Council 280,694 280,694 258,760 21,934
City Clerk 817,567 817,567 803,909 13,658
City Treasurer 132,900 132,900 123,505 9,395
City Attorney 1,063,691 1,081,462 961,588 119,874
City Manager 2,958,815 5,737,833 5,364,075 373,758
Finance 3,022,116 3,384,364 3,173,973 210,391
Non-departmental 1,072,087 1,130,087 1,265,202 (135,115)
Human Resources 1,535,163 1,780,097 1,745,612 34,485
Fire 27,711,586 29,104,944 28,621,268 483,676
Police 29,174,475 29,254,475 28,482,445 772,030
Public Works 6,284,775 6,512,375 6,831,377 (319,002)
Parks and Recreation 16,294,509 17,103,184 16,795,119 308,065
Library 5,806,294 6,149,808 5,655,551 494,257
Economic and Community Development 9,009,367 12,443,981 14,318,597 (1,874,616)
Total charges to appropriations 105,164,039 114,913,771 114,400,981 512,790
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 2,250,000 2,250,000 840,298 (1,409,702)
Transfers in (Note 4C) 2,987,105 5,579,214 4,906,791 (672,423)
Transfers out (Note 4C) (2,883,001) (5,637,057) (11,995,827) (6,358,770)
Total Other Financing Sources (Uses) 2,354,104 2,192,157 (6,248,738) (8,440,895)
NET CHANGE IN FUND BALANCES BEFORE SPECIAL ITEMS 10,738,104 6,432,667 12,306,519 5,873,852
SPECIAL ITEMS
Assets transferred from the
Successor Agency (Note 13C)829,315 829,315
Remittance of land sale proceeds (1,360,906) (1,360,906)
NET CHANGE IN FUND BALANCE $10,738,104 $6,432,667 11,774,928 $5,342,261
Fund Balance - July 1 61,286,892
Adjustment to budgetary basis:
Encumbrance adjustments 11,881,363
Fund Balance - June 30 $84,943,183
See accompanying notes to financial statements
Budgeted Amounts
37
Variance with
Final Budget
Positive
Budget Actual Amounts (Negative)
REVENUES:
Interest and rental $167,000 $304,949 $137,949
Other 140,000 (140,000)
Total Revenues 307,000 304,949 (2,051)
EXPENDITURES:
Current:
Economic and Community Development 543,403 95,960 447,443
Total Expenditures 543,403 95,960 447,443
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (236,403) 208,989 445,392
NET CHANGE IN FUND BALANCE ($236,403) 208,989 $445,392
Fund balance - July 1 5,778,249
Fund balance - June 30 $5,987,238
SPECIAL REVENUE FUND
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
LOW AND MODERATE INCOME HOUSING ASSETS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2019
38
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.
39
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2019
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)$20,642,375 $3,489,666 $2,019,944 $26,151,985 $32,946,940
Receivables:
Accounts 442,162 3,000 445,162 35,517
Accrued interest 91,270 19,901 7,409 118,580 186,836
Deposits 129,101
Restricted cash and investments (Note 2)66 66
Prepaid Items 830,740
Total current assets 21,175,873 3,512,567 2,027,353 26,715,793 34,129,134
Noncurrent assets:
Capital assets (Note 3):
Nondepreciable 23,699,347 421,149 1,762,669 25,883,165
Depreciable, net accumulated depreciation 101,385,468 10,271,672 1,041,179 112,698,319 4,911,558
Total non-current assets 125,084,815 10,692,821 2,803,848 138,581,484 4,911,558
Total Assets 146,260,688 14,205,388 4,831,201 165,297,277 39,040,692
DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 7)3,177,871 3,177,871
Related to OPEB (Note 9)424,800 424,800
Total Deferred Outflows of Resources 3,602,671 3,602,671
LIABILITIES
Current liabilities:
Accounts payable 4,020,181 200 27,042 4,047,423 232,644
Other payable 228,340 128,224 356,564 276,975
Accrued interest payable 485,800 485,800
Deposits payable 7,500 7,500
Unearned revenue 199,636 199,636
Accrued insurance loss (Note 11)712,000
Compensated absences obligation (Note 1L)476,973 4,589 19,449 501,011 721,104
Current portion of long-term debt (Note 5)4,906,394 4,906,394 263,838
Total current liabilities 10,125,188 4,789 374,351 10,504,328 2,206,561
Noncurrent liabilities:
Accrued insurance losses (Note 11)13,739,253
Compensated absences obligation (Note 1L)27,664 16,090 183 43,937 889,825
Noncurrent portion of long-term debt (Note 5)33,211,810 33,211,810 489,781
Net OPEB liability (Note 9)6,058,400 6,058,400
Net pension liability (Note 7)18,269,916 18,269,916
Total noncurrent liabilities 57,567,790 16,090 183 57,584,063 15,118,859
Total Liabilities 67,692,978 20,879 374,534 68,088,391 17,325,420
DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 7)194,064 194,064
Related to OPEB (Note 9)54,400 54,400
Total Deferred Inflows of resources 248,464 248,464
NET POSITION:
Net investment in capital assets 86,966,611 10,692,821 2,803,848 100,463,280 4,157,939
Unrestricted (deficit)(5,044,694) 3,491,688 1,652,819 99,813 17,557,333
Total Net Position $81,921,917 $14,184,509 $4,456,667 100,563,093 $21,715,272
Some amounts reported for business-type activities in the statement
of net position are different because certain internal service fund
assets and liabilities are included in business-type activities (54,847)
$100,508,246
See accompanying notes to financial statements
40
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2019
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds
OPERATING REVENUES
Charges for services $23,556,871 $410,600 $23,967,471 $25,835,889
Other cities' participation 5,827,480 5,827,480
Permit fees 521,205 521,205
Parking fees $1,180,538 1,180,538
Total Operating Revenues 29,905,556 1,180,538 410,600 31,496,694 25,835,889
OPERATING EXPENSES
Personnel expenses 10,406,362 295,390 704,855 11,406,607 16,609,532
Professional services 1,722,664 182,109 176,380 2,081,153 908,237
OPEB Expenses 535,039 535,039
Program supplies 1,629,685 9,317 181,413 1,820,415 1,246,415
Insurance 210,870 3,698 214,568 1,602,819
Self-insurance and claims 3,323,889
Repair and maintenance 1,212,045 1,212,045 574,807
Rents and leases 1,689,059 1,689,059
Utilities 1,593,208 48,144 19,409 1,660,761 148,225
Administration 1,380,437 107,045 66,727 1,554,209
Depreciation 4,453,302 253,826 25,032 4,732,160 830,054
Other 18,788 3,597 22,385 412,787
Total Operating Expenses 24,851,459 895,831 1,181,111 26,928,401 25,656,765
Operating Income (Loss)5,054,097 284,707 (770,511) 4,568,293 179,124
NONOPERATING REVENUES (EXPENSES)
Interest income 488,437 105,790 39,477 633,704 989,587
Gain on dispositions of capital assets 41,611
Interest expense (838,647)(838,647)(30,743)
Subventions and grants 625,470 625,470
Other 130,079 130,079 72,740
Total Nonoperating Revenues (Expenses)(350,210)105,790 795,026 550,606 1,073,195
Income (loss) before transfers 4,703,887 390,497 24,515 5,118,899 1,252,319
TRANSFERS
Transfers in (Note 4C)651,572 1,449,650 2,101,222 250,000
Change in Net Position 5,355,459 390,497 1,474,165 7,220,121 1,502,319
Net Position (Deficits) - July 1 76,566,458 13,794,012 2,982,502 93,342,972 20,212,953
Net Position (Deficits) - June 30 $81,921,917 $14,184,509 $4,456,667 100,563,093 $21,715,272
Change in Net Position 7,220,121
Some amounts reported for business-type activities in the
statement of activities are different because the net revenue
(expense) of certain internal service funds is reported
with business-type activities (37,177)
Change in Net Position of Business-Type Activities $7,182,944
See accompanying notes to financial statements
41
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2019
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $29,643,870 $1,177,538 $962,565 $31,783,973
Cash payments to suppliers for goods and services (6,283,419) (399,808) (457,820) (7,141,047) ($4,932,308)
Cash payments to employees for services (8,998,734) (292,815) (705,689) (9,997,238) (16,284,429)
Cash received from interfund service provided 25,116,781
Cash payments for judgments and claims (1,665,992)
Net Cash Provided by (Used in) Operating Activities 14,361,717 484,915 (200,944) 14,645,688 2,234,052
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Subventions and grants 625,470 625,470
Transfers in 651,572 1,449,650 2,101,222 250,000
Net Cash Provided by Noncapital Financing Activities 651,572 2,075,120 2,726,692 250,000
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Proceeds from issuance of debt 8,854,738 8,854,738
Principal paid on long-term debt (4,782,036)(4,782,036)(381,482)
Interest paid on long-term debt (925,490)(925,490)(30,743)
Acquisition of capital assets, net (18,356,759)(961,505) (19,318,264)(335,751)
Proceeds from the sale of capital assets 79,653
Net Cash Used in Capital and Related Financing Activities (15,209,547)(961,505) (16,171,052)(668,323)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 690,891 145,358 55,224 891,473 1,380,951
Changes in market value of investments (216,345)(47,174)(17,562) (281,081)(442,876)
Net Cash Provided by Investing Activities 474,546 98,184 37,662 610,392 938,075
Net Increase (Decrease) in cash and cash equivalents 278,288 583,099 950,333 1,811,720 2,753,804
Cash and cash equivalents, beginning 20,364,153 2,906,567 1,069,611 24,340,331 30,193,136
Cash and cash equivalents, ending $20,642,441 $3,489,666 $2,019,944 $26,152,051 $32,946,940
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)$5,054,097 $284,707 ($770,511) $4,568,293 $179,124
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation 4,453,302 253,826 25,032 4,732,160 830,054
Other non-operating revenue (expenses)130,079 130,079 72,740
Net change in assets and liabilities:
Accounts and lease receivables (261,686)(3,000) 222,250 (42,436)(35,517)
Deposit 74,409
Prepaid items (830,740)
Accounts payable 3,619,361 (40,598)(74,321) 3,504,442 98,660
Other payable 89,015 (12,595)67,725 144,145 111,269
Unearned revenue 199,636 199,636
Accrued insurance losses 1,657,897
(Decrease) increase due to OPEB 124,053 124,053
Compensated absence obligations (14,240)2,575 (834)(12,499)76,156
(Decrease) increase due to retirement system 1,297,815 1,297,815
Net Cash Provided by (Used in) Operating Activities $14,361,717 $484,915 ($200,944) $14,645,688 $2,234,052
See accompanying notes to basic financial statements
42
FIDUCIARY FUND
An agency fund is used to account for assets held by the City acting as an agent for another government
entity. The financial activity of this fund, excluded from the Entity-wide financial statements, is presented
in a separate Fiduciary Fund financial statement.
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.
SSF EMPLOYEE DEFERRED COMP TRUST OVERSIGHT FUND
This fund is used to pay for the administrative costs of monitoring the Deferred Compensation Funds on
behalf of City employees.
43
Agency Fund
Successor SSF Employee
Agency Def Comp
Private Purpose Trust
Trust Fund Oversight
ASSETS
Cash and investments (Note 2) $6,809,385 $105,115
Accounts receivable 3,049
Interest receivable 46,089 579
Advances to the City (Note 5) 4,845,152
Loans receivable (Note 13B) 159,320
Restricted cash and investments (Note 2) 41,781,296
Capital assets (Note 13C):
Nondepreciable 111,219
Depreciable, net accumulated depreciation 257,904
Total Assets 54,013,414 105,694
LIABILITIES
Accounts payable 1,706
Deposits 187,519
Other accrued liabilities 103,988
Noncurrent portion of pollution remediation (Note 13E) 537,000
Total Liabilities 724,519 $105,694
NET POSITION
Held in trust for other purposes $53,288,895
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2019
44
Successor
Agency
Private Purpose
Trust Fund
ADDITIONS
Intergovernmental $9,389,320
Interest and rentals 1,031,434
Total Additions 10,420,754
DEDUCTIONS
Economic and Community Development 6,572,739
Interest expense 2,375
Depreciation 6,819
Total Deductions 6,581,933
SPECIAL ITEMS
Assets transferred to the City of South San Francisco (Note 13C) 829,315
Total Special Items 829,315
Change in net position 3,009,506
NET POSITION HELD IN TRUST FOR OTHER PURPOSES
Beginning of the year 50,279,389
End of the year $53,288,895
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2019
45
This Page Left Intentionally Blank
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
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 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.
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 component unit’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.
47
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Basis of Presentation
Government-wide Statements - The Statement of Net Position and the Statement of Activities
display information about the primary government (the City) and its component units. These
statements include the financial activities of the overall City government, except for fiduciary
activities. Interfund transfers and amounts owed between funds within the primary government
have been eliminated from the statements. Amounts representing interfund services and uses
remain in the statements. These statements distinguish between the governmental and business-
type activities of the City. Governmental activities generally are financed through taxes,
intergovernmental revenues, and other nonexchange transactions. Business-type activities are
financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues
for each segment of the business-type activities of the City and for each function of the City’s
governmental activities. Direct expenses are those that are specifically associated with a program
or function and, therefore, are clearly identifiable to a particular function. Program revenues
include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants
and contributions that are restricted to meeting the operational needs of a particular program and
(c) fees, grants and contributions that are restricted to financing the acquisition or construction of
capital assets. Revenues that are not classified as program revenues, including all taxes, are
presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the City’s
funds, including fiduciary funds and blended component units. Separate statements for each fund
category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund
financial statements is on major individual governmental and enterprise funds, each of which is
displayed in a separate column. All remaining governmental and enterprise funds are aggregated
and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with the principal activity of the fund. Exchange transactions are those in
which each party receives and gives up essentially equal values. Nonoperating revenues, such as
subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
E. Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or
expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand
total. The General Fund is always a major fund. The City may also select other funds it believes
should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial
statements:
General Fund – Accounts for resources traditionally associated with government, such as
administration, public safety, library, parks, maintenance, and recreation, outside of those
accounted for in other funds.
48
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Low and Moderate Income Housing Asset 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.
Capital Improvement Capital Projects Fund – Accounts for expenditures associated with the
acquisition, construction, or improvement of City-owned facilities and infrastructure. Funding
comes from the General Fund, Special Revenue funds, grants and fees.
East of 101 Sewer Impact Fees Capital Projects Fund – These fees provide new
development’s share of new and rehabilitated sewer collection and treatment facilities to serve the
East of Highway 101 area.
East of 101 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.
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.
Developer Deposits Capital Projects Fund – Accounts for a deposit by a large corporation for
various capital projects the developer agreed to fund.
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).
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.
49
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fiduciary Funds – An agency fund is used to account for assets held by the City as an agent for
SSF Employee Deferred Comp Trust Oversight Fund. 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. The financial activities of the funds are excluded from the
Government-wide financial statements, but are presented in the separate Fiduciary Fund financial
statements.
F. Basis of Accounting
The government-wide, proprietary, private-purpose trust fund, 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.
The agency funds which only report assets and liabilities and do not have a measurement focus.
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, claims and judgments, and compensated absences, which are recognized as expenditures to
the extent they have matured. General capital asset acquisitions are reported as expenditures in
governmental funds. Proceeds from long-term debt and acquisitions under capital leases are
reported as other financing sources.
Those revenues susceptible to accrual are property and sales taxes, certain intergovernmental
revenues, interest revenue, licenses and permits, charges for services, fines and forfeitures. Sales
taxes collected and held by the state at year end on behalf of the City are also recognized as
revenue. Other receipts and taxes are recognized as revenue when the cash is received.
Non-exchange transactions, in which the City gives or receives value without directly, receiving
or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the
accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or
assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in
which all eligibility requirements have been satisfied. Under the terms of grant agreements, the
City may fund certain programs with a combination of cost-reimbursement grants, categorical
block grants, and general revenue. Thus, both restricted and unrestricted net position may be
made available to finance program expenditures. The City’s policy is to first apply restricted
grant resources to such programs, followed by general revenues if necessary.
The City considers restricted shared state revenues such as gasoline taxes and public safety sales
taxes, restricted locally imposed transportation sales taxes, fines, forfeitures, licenses, permits,
charges for services, and program grants as program revenues.
50
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
G. Budgets, Budgetary Accounting, and Encumbrances
The City is not legally required to budget any of its funds, but does so to enhance City
management's effectiveness in their financial planning efforts and to enhance control over the
City's operations. Budgets are adopted on a modified accrual basis, except for encumbrances and
for the Capital Improvement Fund. Encumbrances are considered expenditures in the year of the
purchase order issuance. The Capital Improvement Fund is 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; Capital
Projects funds except for the Developer Deposits Capital Projects Fund; 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, 2019.
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 reservations of fund balances since they do not constitute expenditures or liabilities.
Encumbrances are reappropriated in the following year.
The budgetary comparison statements present comparisons of the legally adopted budget with
actual charges to appropriations on a budgetary basis. In order to provide a meaningful
comparison, the actual charges on a budgetary basis include encumbrances, which is a basis that
differs significantly from those used to present financial statements in conformity with generally
accepted accounting principles.
Certain indirect costs are included in program expenses reported for individual functions and
activities.
H.Expenditures in Excess of Appropriations – The City’s General Fund had the following
departmental expenditures in excess of appropriations for the year ended June 30, 2019:
Expenditures in
Excess of Budget
(Non GAAP
Legal Basis)
General Fund:
Non-departmental $135,115
Public Works 319,002
Economic and Community Development 1,874,616
51
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
I. Cash Equivalents – For purposes of the statement of cash flows, the City considers all highly
liquid investments (including all restricted assets) with maturity of three months or less when
purchased to be cash equivalents. The City maintains a cash and investment pool that is available
for use by all funds. As the proprietary funds' share of this pool is readily available when needed,
such share is also considered to be cash equivalent. Deposit assets in the proprietary funds are
related to insurance and benefits and are not considered cash equivalents for purposes of the
statement of cash flows.
J. Inventory and Prepaid Items – consist of consumable supplies. Inventory is stated at cost (first-
in, first-out method). The costs are recorded as expenditures at the time the individual inventory
or prepaid item is consumed. Reported inventory and prepaid items are equally offset by a fund
balance reservation, which indicates that they do not constitute "available spendable resources"
even though they are a component of net current assets.
K. Capital Assets – Donated capital assets, donated works of art and similar items, and capital assets
received in a service concession arrangement are valued at acquisition value. All other capital assets
are valued at historical cost or estimated historical cost if actual historical cost is not available.
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 has assigned the useful lives listed below to capital assets:
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
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.
L. Vacation and Sick Pay – are accrued as earned. Upon termination, employees are paid for all
unused vacation at their current hourly rates. After five to twenty years of employment, one half
of accumulated sick leave becomes vested, up to a maximum amount as specified under labor
contract provisions. The vested portion is available for current use or, if unused, is payable at
termination or retirement.
The long-term portion of the liability for compensated absences for governmental fund type
operations is recorded as compensated absences in the government-wide financial statements. The
portion expected to be permanently liquidated is recorded in the Health and Retirement Benefits
Internal Service Fund. Proprietary fund liabilities are recorded within their respective funds.
52
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The changes of the compensated absences were as follows:
Governmental Business-Type
Activities Activities Total
Beginning Balance $6,573,048 $557,447 $7,130,495
Additions 4,939,616 505,956 5,445,572
Payments (4,479,611) (518,455) (4,998,066)
Ending Balance $7,033,053 $544,948 $7,578,001
Current Portion $4,331,917 $501,011 $4,832,928
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.
M. Property Tax Levy, Collection and Maximum Rates – State of California Constitution Article
XIII A provides that the combined maximum property tax rate on any given property may not
exceed 1% of its assessed value unless an additional amount for general obligation debt has been
approved by voters. Assessed value is calculated at 100% of market value as defined by Article
XIII A and may be adjusted by no more than 2% per year unless the property is sold, transferred,
or substantially improved. The State Legislature has determined the method of distribution of
receipts from a 1% tax levy among the counties, cities, school districts and other districts. The
County of San Mateo assesses properties, bills for and collects property taxes on the schedule that
follows:
Secured Unsecured
Valuation/lien dates January 1 January 1
Levy dates July 1 July 1
Due dates (delinquent as of) 50% on November 1 (December 10) July 1 (August 31)
50% on February 1 (April 10)
The term "unsecured" refers to taxes on personal property other than land and buildings. These
taxes are secured by liens on the property being taxed.
Property taxes levied are recorded as revenue and receivables when they are collected during the
fiscal year of levy or within 60 days of year-end.
N. Properties held for redevelopment – is stated at the lower of historical cost or net realizable value
(equal to agreed upon sales price if a disposition and development agreement has been reached
with a developer).
O. Unbilled Services – for the Sewer Rental Enterprise Fund are accrued at year-end.
53
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
P. 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.
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 position 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 position 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. New Accounting Pronouncements
Governmental Accounting Standards Board (GASB) Statement No. 83 – Certain Asset
Retirement Obligations. This Statement addresses accounting and financial reporting for certain
asset retirement obligations (AROs). An ARO is a legally enforceable liability associated with the
retirement of a tangible capital asset. A government that has legal obligations to perform future
asset retirement activities related to its tangible capital assets should recognize a liability based on
the guidance in this Statement. This statement is effective for the 2018-2019 fiscal year and had
no effect on the City’s financial statements.
Governmental Accounting Standards Board (GASB) Statement No. 88 – Certain Disclosures
Related to Debt, including Direct Borrowings and Direct Placements. The primary objective of
this Statement is to improve the information that is disclosed in notes to government financial
statements related to debt, including direct borrowings and direct placements. It also clarifies
which liabilities governments should include when disclosing information related to debt. This
Statement requires that additional essential information related to debt be disclosed in notes to
financial statements, including unused lines of credit; assets pledged as collateral for the debt; and
terms specified in debt agreements related to significant events of default with finance-related
consequences, significant termination events with finance-related consequences, and significant
subjective acceleration clauses. For notes to financial statements related to debt, this Statement
also requires that existing and additional information be provided for direct borrowings and direct
placements of debt separately from other debt. This statement is effective for the 2018-2019 fiscal
year. See Note 5 for additional information.
54
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
S. 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.
T. OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of Resources Related to
OPEB
For purposes of measure 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.
55
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
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 market value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with
a market value of 150% of the deposit, as collateral for these deposits. Under California Law this
collateral is held in a separate investment pool by another institution in the City’s name and
places the City ahead of general creditors of the institution.
The City’s investments are carried at fair value, as required by generally accepted accounting
principles. The City adjusts the carrying value of its investments to reflect their fair value at each
fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
B.Classification
Cash and investments as of June 30, 2019 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 $221,594,073
Restricted cash and investments 352,288
Total Primary Government cash and investments 221,946,361
Statement of Fiduciary Assets:
Cash and investments available for operations 6,914,500
Restricted cash and investments 41,781,296
Total Fiduciary cash and investments 48,695,796
Conference Center:
Cash and investments available for operations 4,399,644
Total South San Francisco
Conference Center cash and investments 4,399,644
Total cash and investments $275,041,801
56
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 2 - CASH AND INVESTMENTS (Continued)
The City does not allocate investments by fund. Each proprietary fund’s portion of Cash and
Investments Available for Operations is in substance a demand deposit available to finance
operations, and is considered a cash equivalent in preparing the statement of cash flows.
C. Investments Authorized by the California Government Code and the City’s Investment Policy
The City’s investment policy and the California Government Code allow the City to invest in the
following provided the credit ratings of the issuers are acceptable to the City and approved
percentages and maturities are not exceeded. The table below also identifies certain provisions of
the California Government Code, or the City’s Investment Policy where it is more restrictive:
Minimum Maximum Maximum
Maximum Credit Percentage Investment
Authorized Investment Type Maturity Quality (A) of Portfolio in One Issuer
U.S. Treasury Obligations 5 years N/A No Limit No Limit
U.S. Agency Securities 5 years N/A No Limit 25%
Asset-Backed Securities 5 years AA 20% 5%
Commercial Paper 270 days A1,P1 25% 5%
Negotiable Certificates of Deposit 5 years A-1 or A 30% 5%
Repurchase Agreements N/A AA No Limit No Limit
Local Agency Investment Fund (LAIF) Upon Demand N/A $65 million No Limit
Money Market Mutual Funds N/A Aaa 20% 10%
Corporate Medium-Term Notes 5 years A 30% 5%
Supranational Obligations 5 years AA 30% 10%
Rating System, or its equivalent.
(A) The City's Investment Policy includes credit ratings provided by Standard and Poor's Investment
The City of South San Francisco Conference Center Authority (Authority) maintains its cash and
investments separately from the City. The investment policy of the Authority contains no
limitations on the amount that can be invested in any one issue beyond that stipulated by the
California Government Code.
57
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 2 - CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
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 fails 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
U.S. Agency Securities N/A N/A No Limit
Commercial Paper 270 days Highest
Rating
Category
No Limit
State and Local Investment Pool N/A Highest
Rating
Category
No Limit
Guaranteed Investment Contracts (fully
collateralized) (A)
N/A AAA No Limit
Municipal Obligations N/A Highest
Rating
Category
No Limit
State Obligations N/A Two Highest
Rating
Categories
No Limit
(A) Guaranteed Investment Contracts must be fully collateralized with U.S. Treasury
Obligations or U.S. Agency Obligations.
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.
58
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 2 - CASH AND INVESTMENTS (Continued)
F. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity
of its fair value to changes in market interest rates. The City also manages its interest rate risk is
by holding most investments to maturity, thus reversing unrealized market gains and losses.
Information about the sensitivity of the fair values of the City’s investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by the following
table that shows the distribution of the City’s investments by maturity or earliest call date:
Remaining maturity
Less than One to Five
1 year Years Total
City and Fiduciary:
U.S. Agency Securities
Non-callable $5,514,700 $30,409,595 $35,924,295
U.S. Treasury Notes 7,514,372 23,921,198 31,435,570
Local Agency Investment Fund 63,923,845 63,923,845
Money Market Funds 41,781,800 41,781,800
Guaranteed Investment Agreements
Corporate Notes 8,189,865 25,154,699 33,344,564
Commercial Paper 3,980,718 3,980,718
Negotiable Certificates of Deposit 10,256,911 10,256,911
Asset-Backed Securities 47,439 19,937,764 19,985,203
Supranational Obligations 6,792,243 6,792,243
South San Francisco Conference Center:
Local Agency Investment Fund 4,093,496 4,093,496
Total Investments $145,303,146 $106,215,499 251,518,645
Cash in Banks and on Hand - City of South San Francisco 23,217,008
Cash in Banks and on Hand - South San Francisco Conference Center 306,148
Total Cash and Investments $275,041,801
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. 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, 2019, these investments have an
average maturity of 173 days.
Money market funds are available for withdrawal on demand and as of June 30, 2019 have an
average maturity of 20 days.
59
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
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, 2019, for each
of the Primary Government’s investment types as provided by Moody’s investment rating system,
except as noted:
Investment Type Aaa Aaa-mf Aa1-Aa3 A1-A3 P-1 Total
City and Fiduciary:
U.S. Agency Securities
Non-callable $35,924,295 $35,924,295
Money Market Funds $41,781,800 41,781,800
Corporate Notes 1,751,794 $8,193,299 $23,399,471 33,344,564
Commercial Paper $3,980,718 3,980,718
Negotiable Certificates of Deposit 10,256,911 10,256,911
Asset-Backed Securities 12,794,976 12,794,976
Supranational Obligations 6,792,243 6,792,243
Totals $57,263,308 $41,781,800 $8,193,299 $23,399,471 $14,237,629 144,875,507
City and Fiduciary:
Not rated:
Asset Backed Securities 7,190,227
Local Agency Investment Fund 63,923,845
Exempt from credit rate disclosure:
U.S. Treasury Notes 31,435,570
Not rated:
Local Agency Investment Fund 4,093,496
Total Investments $251,518,645
South San Francisco Conference Center:
H. Concentration of Credit Risk
The City’s investment policy contains limitations on the amount that can be invested in any one
issuer beyond that stipulated by the California Government Code. Investments in any one issuer,
other than U. S. Treasury securities, mutual funds, and external investment pools that represent
5% or more of total Entity-wide investments are as follows at June 30, 2019:
Issuer Investment Type Amount
Federal National Mortgage Association U.S. Agency Securities $12,781,598
60
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 2 - CASH AND INVESTMENTS (Continued)
I. 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, 2019:
Level 2 Total
Investments by Fair Value Level:
City and Fiduciary:
U.S. Agency Securities
Non-callable $35,924,295 $35,924,295
U.S. Treasury Notes 31,435,570 31,435,570
Corporate Notes 33,344,564 33,344,564
Commercial Paper 3,980,718 3,980,718
Negotiable Certificates of Deposit 10,256,911 10,256,911
Asset Backed Securities 19,985,203 19,985,203
Supranational Obligations 6,792,243 6,792,243
Totals $141,719,504 141,719,504
Investments Measured at Amortized Cost:
City and Fiduciary:
Money Market Mutual Funds 41,781,800
Investments Exempt from Fair Value Hierarchy:
City and Fiduciary:
Local Agency Investment Fund 63,923,845
South San Francisco Conference Center:
Local Agency Investment Fund 4,093,496
Total Investments $251,518,645
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 and guaranteed investment agreements were reported
at amortized cost.
61
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 3 - CAPITAL ASSETS
A.Capital Asset Changes – Changes in capital assets during the fiscal year consist of:
Balance
6/30/2018
Additions and
Adjustments
Retirements and
Adjustments Transfers
Balance
6/30/2019
Governmental activities
Capital assets not being depreciated:
Land $67,173,001 $749,398 $67,922,399
Construction in Progress 18,087,541 25,215,794 ($634,406) ($7,336,780) 35,332,149
Total capital assets not being depreciated 85,260,542 25,965,192 (634,406) (7,336,780) 103,254,548
Capital assets being depreciated:
Buildings and Improvements 94,859,160 1,315,034 96,174,194
Infrastructure - Streets 194,928,165 4,775,247 199,703,412
Infrastructure - Storm Drains 8,927,492 8,927,492
Infrastructure - Traffic Control Devices 10,195,338 570,721 10,766,059
Equipment and Vehicle 6,654,321 38,043 675,778 7,368,142
Furniture and Fixtures 2,614,215 2,614,215
Total capital assets being depreciated 318,178,691 38,043 7,336,780 325,553,514
Less accumulated depreciation for:
Buildings and Improvements (37,330,676) (2,505,926)(39,836,602)
Infrastructure - Streets (101,358,967) (5,030,431)(106,389,398)
Infrastructure - Storm Drains (3,366,561) (204,500)(3,571,061)
Infrastructure - Traffic Control Devices (3,293,879) (439,218)(3,733,097)
Equipment and Vehicle (6,222,784) (163,009)(6,385,793)
Furniture and Fixtures (1,605,125) (95,561)(1,700,686)
Total accumulated depreciation (153,177,992) (8,438,645)(161,616,637)
Net Governmental Fund
Capital Assets Being Depreciated 165,000,699 (8,400,602)7,336,780 163,936,877
Internal Service Fund Capital Assets
Capital assets being depreciated:
Equipment and Vehicle 15,179,189 335,751 (38,043)15,476,897
Accumulated depreciation (9,735,285) (830,054)(10,565,339)
Net Internal Service Fund Capital Assets
Being Depreciated 5,443,904 (494,303) (38,043)4,911,558
Governmental activity capital assets, net $255,705,145 $17,070,287 ($672,449)$272,102,983
62
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 3 - CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2018 Additions Retirements Transfers June 30, 2019
Business-type activities
Capital assets, not being depreciated:
Land $794,587 $794,587
Construction in Progress 11,162,897 $19,318,264 ($148,029) ($5,244,554)25,088,578
Total capital assets not being depreciated 11,957,484 19,318,264 (148,029) (5,244,554)25,883,165
Capital assets being depreciated:
Buildings and Improvements 66,955,777 120,081 67,075,858
Clean Water Facilities and Lines 75,522,774 4,339,320 79,862,094
Infrastructure - Storm Drains 4,773,977 785,153 5,559,130
Infrastructure - Streets 7,377,546 7,377,546
Equipment and Vehicle 18,505,506 18,505,506
Furniture and Fixtures 31,154 31,154
Total capital assets being depreciated 173,166,734 5,244,554 178,411,288
Less accumulated depreciation for:
Buildings and Improvements (17,762,000) (1,609,793)(19,371,793)
Clean Water Facilities and Lines (29,165,952) (1,938,017)(31,103,969)
Infrastructure - Storm Drains (1,034,358) (166,984)(1,201,342)
Infrastructure - Streets (1,840,691) (209,570)(2,050,261)
Equipment and Vehicle (11,146,654) (807,796)(11,954,450)
Furniture and Fixtures (31,154)(31,154)
Total accumulated depreciation (60,980,809) (4,732,160)(65,712,969)
Net capital assets being depreciated 112,185,925 (4,732,160)5,244,554 112,698,319
Business-type activity capital assets, net $124,143,409 $14,586,104 ($148,029)$138,581,484
Balance Balance
June 30, 2018 Additions Retirements June 30, 2019
Component Unit:
South San Francisco Conference Center
Construction in Progress $43,289 $17,500 ($43,289) $17,500
Buildings and Improvements 11,148,265 218,122 (541,411) 10,824,976
Furniture and Fixtures 880,168 88,332 (42,901) 925,599
Machinery and equipment 267,151 115,037 (57,882) 324,306
Total:12,338,873 438,991 (685,483) 12,092,381
Less accumulated depreciation (8,760,696) (692,375) 642,194 (8,810,877)
Component unit, net $3,578,177 ($253,384) ($43,289) $3,281,504
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. GASB Statement 34
requires that these contributions be accounted for as revenues at the time the capital assets are
contributed.
63
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 3 - CAPITAL ASSETS (Continued)
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 $663,081
Fire 366,014
Police 93,759
Public works 6,622,326
Parks and recreation 571,118
Library 68,014
Economic and community development 54,333
Total Governmental Functions 8,438,645
Internal Service Funds 830,054
Total Governmental Activities $9,268,699
Business-Type Activities
Sewer Enterprise $4,453,302
Parking District 253,826
Storm Water 25,032
Total Business-Type Activities $4,732,160
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.
B. Inter-fund Receivables and Payables
Amounts due to or due from other funds reflect inter-fund balances for services rendered or short-
term loans expected to be repaid in the next fiscal year.
Due From Other Fund Due to Other Fund Amount
General Fund Capital Improvement Capital Projects Fund $1,100,000
64
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 4 - INTER-FUND TRANSACTIONS (Continued)
C.Transfers
Transfers between funds during the fiscal year ended June 30, 2019 were as follows:
FROM FUND (OUT) TO FUND (IN)AMOUNT
General Fund Capital Improvement Capital Projects Fund $8,887,591
Storm Water Enterprise Fund 622,012
Non-Major Governmental Funds 2,236,224
Internal Service Funds 250,000
East of 101 Sewer Impact Fees Capital Project Fund Sewer Enterprise Fund 281,827
East of 101 Traffic Impact Fees Capital Project Fund Capital Improvement Capital Projects Fund 701,659
Capital Infrastructure Reserve Capital Projects Fund Capital Improvement Capital Projects Fund 3,123,582
Storm Water Enterprise Fund 37,481
Non-major Governmental Funds General Fund 4,906,791
Capital Improvement Capital Projects Fund 2,374,652
Sewer Enterprise Fund 369,745
Storm Water Enterprise Fund 790,157
Total $24,581,721
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, 2019 follows:
Authorized
and Balance at Balance at Current
Issued June 30, 2018 Additions Retirement June 30, 2019 Portion
Governmental Activities - Direct Borrowing:
2007 Loans Payable to the Successor Agency (1) $8,309,152 $3,464,000 $4,845,152
Capital Leases (2):
2008 Two Fire Trucks 54,111 54,111
2010 Two Fire Trucks 322,306 125,154 197,152 $130,146
2013 Fire Truck 686,699 130,232 556,467 133,692
2014 Sweeper 71,985 71,985
Total Capital Leases 1,135,101 381,482 753,619 263,838
Net Governmental Long-Term Debt $9,444,253 $3,845,482 $5,598,771 $263,838
Business-Type Activities - Direct Borrowing:
1999 State Water Resources Loan, 2.6%, due 8/1/22 (3)$47,721,252 $15,164,070 $2,879,154 $12,284,916 $2,954,013
2004 State Water Resources Loan, 2.5%, due 1/1/27 (3)21,258,529 10,052,903 1,150,729 8,902,174 1,179,497
2008 State Water Resources Loan, 2.4%, (5) 9,164,505 5,553,529 447,153 5,106,376 457,884
2018 State Water Resources Loan, 1.8% (6)53,403,000 $8,854,738 8,854,738
2005 Water and Wastewater Revenue Bonds, 2.75 to 4.75%, due 04/30/26 (4) 6,000,000 3,275,000 305,000 2,970,000 315,000
Total Enterprise Fund Long-Term Debt $137,547,286 $34,045,502 $8,854,738 $4,782,036 $38,118,204 $4,906,394
Component Unit - Conference Center:
2003 Revenue Bonds, 2.25% to 4.0%, due 9/1/18 (7)$5,865,000 $460,000 $460,000
Total Conference Center $5,865,000 $460,000 $460,000
65
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 5 - LONG-TERM DEBT (Continued)
(1) As of June 30, 2019, the Oyster Point Improvements Impact Fund owed Successor Agency
(formerly the Merged Redevelopment Project Area Capital Project Fund) for developer fees in the
amount of $4,845,152 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 13). Prior to the
dissolution of all Redevelopment Agencies in California by the State, the former Redevelopment
Agency (Agency) advanced $12,176,207 to the Oyster Point Improvement Impact Fee Capital
Projects Fund (the Oyster Point Fund). The impact fees are collected according to a fee
methodology adopted under the terms of AB 1600. The fees are assessed against commercial
development in a specific geographic area that is primarily east of Highway 101 to repay the former
Agency for the funds it advanced to the Oyster Point Fund to pay for freeway interchange
improvements at Highway 101 and Oyster Point Blvd, and are assessed per an adopted Engineering
report's formula that measures each new development's impact on the area's trip traffic. While the
former Agency advanced the funds, the impact fee was put in place specifically to charge future
developers for their share of traffic trips generated prior to the construction of the improvements.
When the Agency was dissolved, the Successor Agency, and therefore, all local taxing entities, are
entitled to receive future Oyster Point Impact fees collected by the City from developers. Future
developers, not the City of South San Francisco, are legally obligated to pay the future fees until the
liability owed to the Successor Agency is paid off as long as the fee continues to be levied and is in
place. The repayment has significantly slowed since 2007, as development has subsided and fees
assessed have therefore dropped. Management believes it may take 10-30 years or more before the
Successor Agency is fully paid back.
(2) The City has entered into long-term capital leases with various financing agencies. Under
these capital leases, all leased assets shall be distributed to the City at the end of the lease terms
and shall thereafter remain the sole property of the City. Therefore, these capital leases have been
recorded at the present value of the future minimum lease payments at the date of inception of the
lease, and the corresponding assets have been included in the Statement of Net Position as
appropriate. Capital lease payments are made from revenues of the Equipment Replacement Internal
Service Fund and the General Fund. The lease agreements contain provisions that in an event of
default, the lessor may (a) seize the properties, (b) sell or lease the properties or (c) exercise any and
all remedies available to it under applicable law, including the right to enforce the terms of the
lease, recover damages from the breach of the lease, and rescind the lease as to any portion of or all
of the properties.
(3) The two loans were authorized by the State Water Resources Control Board (SWRCB) to
improve and expand the City’s wastewater treatment plant. Loan proceeds were issued as the
projects progressed and debt service payments commenced one year after project completion. The
loan agreements include provisions that in an event of default, all principal payments shall be
immediately due and payable, interests on all amounts owed shall be paid at the highest legal rate,
any additional payments shall be made and SWRCB shall enforce its rights under the agreements
by any judicial proceeding, whether in law or equity.
(4) 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 debt is $6,000,000. Proceeds were used to finance sewer system capital
improvement.
66
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 5 - LONG-TERM DEBT (Continued)
The principal payment on the debt commenced in October 2006 and is due each October 1. Final
principal payment is due on October 1, 2026. Interest payment ranging from the rates of 2.75%
to 4.75% is payable semi-annually each April 1 and October 1.
The 1999 and 2004 State Water Resources Loans and the 2005 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 $10.8 million which represented coverage of 2.1
over the $5,127,088 in total debt service.
(5)State Water Resources Control Board Loan – In November 2007, the City approved the
$11.8 million loan agreement with 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.
(6)California State Water Resources Control Board Loan – In September 2018, the City entered
into a $53.4 million loan agreement with California State Water Resources Control Board (SWRCB)
to finance the South San Francisco/San Bruno’s Water Quality Control Plant Wet Weather and
Digester Project. A portion of this amount, $4 million, is anticipated to be forgiven on the date of
completion of construction. For the remaining $49.4 million, under the terms of the loan agreement
the City has agreed to repay $59.2 million to the State. The difference between the repayment
obligation and proceeds amounted to $9.8 million and represents in-substance interest on the
outstanding balance.
At June 30, 2019, the City has drawn down $8.9 million from SWRCB and the remaining balance of
$44.5 million is expected to be drawn down in fiscal year 2020. There was no debt service payment
required in fiscal year 2019, with the first debt service payment due in fiscal year ending 2024.
Future debt service is expected to average $3 million per year through fiscal year 2043.
In the event of default has occurred, the City shall, upon demand, immediately accelerate the
payment of all principal owed under this loan agreement, if any, which shall be immediately due
and payable; pay interest at the highest legal rate on all amounts owed; and pay any additional
payments as defined in the loan agreement.
The 2008 and 2018 loans are secured by a pledge of sewer service charge revenues of the City’s
Sewer Enterprise Fund. Sewer service charge revenues available for debt service amounted to
$23.6 million which represented coverage of 44.8 over the $524,906 in debt service.
(7) On June 1, 2003, the City of South San Francisco Capital Improvement Financing Authority
(CIFA) issued $5,865,000 of 2003 Revenue Bonds. The CIFA was created through a joint
exercise of powers agreement between the City and the City of South San Francisco Financing
Authority for the purpose of obtaining financing for capital improvements. The 2003 Revenue
Bonds are obligations of the CIFA although the Authority is required to make the bond principal
and interest payments in return for the use and ownership of the improvements to the leased
buildings that comprise the Conference Center’s facilities.
67
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 5 - LONG-TERM DEBT (Continued)
The Authority has pledged the $2.50 tax imposed on the City’s hotel occupants on a per day per
room basis as the sole source of repayment of these obligations. The 2003 revenue bonds were,
in substance, obligations of the Authority and were repaid during fiscal year 2019.
The 2003 revenue bonds were issued for the purpose of refunding the 1993 revenue bonds. The
refunding reduced required interest payments and did not extend the maturities on the bonds. The
advance refunding reduced the Authority's total debt service payments by $846,859 and resulted
in an accounting loss of $401,345, which has been deferred in accordance with GASB Statement
No. 23, Accounting and Financial Reporting for Refunding of Debt Reported by Proprietary
Activities. This loss was fully amortized during fiscal year 2019.
B. Debt Service Requirements
Future debt service requirements, including interest and capital leases, but excludes the 2007 and
2008 Loans payable to the Redevelopment Successor Agency and the 2018 State Water Resource
Loan at June 30, 2019, were as follows:
For the Year Governmental Activities Business-Type Activities
Ended June 30 Principal Interest Principal Interest
2020 $263,839 $20,330 $4,906,394 $428,062
2021 204,251 11,946 5,038,676 698,146
2022 140,892 6,614 5,173,954 570,292
2023 144,637 2,870 5,312,309 347,457
2024 2,180,393 299,594
2025-2029 6,651,740 7,936
Totals 753,619 $41,760 29,263,466 $2,351,487
2007 Loans Payable 4,845,152
2018 State Water Resources Loan 8,854,738
$5,598,771 $38,118,204
Direct Borrowings
Capital Leases are issued for the purpose of financing the construction or acquisition of projects
defined in each leasing arrangement. Projects are leased to the City for lease payments which,
together with unspent proceeds of the leasing arrangement, will be sufficient to meet the debt
service obligations of the leasing arrangement. At the termination of the leasing arrangement, title
to the project will pass to the City.
Leasing arrangements are similar to debt; they allow investors to participate in a share of
guaranteed payments which are made by the City. Because they are similar to debt, the present
value of the total of the payments to be made by the City is recorded as long-term debt. The
City’s leasing arrangements are included in long term obligations discussed above.
A summary of capital assets leased through the issuance of leasing arrangements follows:
Original
Leasing Arrangement Fund/Activity Cost
Capital Leases Governmental Activity $5,342,799
68
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
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 are divided into
three captions. These captions apply only to Net Position, which is determined only at the
Government-wide level, and are described below:
Net Investment in Capital Assets describes the portion of Net Position which is represented by the
current net book value of the City’s capital assets, less the outstanding balance of any debt issued
to finance these assets.
Restricted describes the portion of Net Position which is restricted as to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws, or other
restrictions which the City cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted to use.
B. Fund Balance
The City’s fund balances are classified in accordance with Governmental Accounting Standards
Board Statement Number 54 (GASB 54), Fund Balance Reporting and Governmental Fund Type
Definitions, which requires 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.
69
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 6 - NET POSITION AND FUND BALANCE (Continued)
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific
purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its
designee and may be changed at the discretion of the City Council or its designee. The City
Council had delegated authority to the Finance Director to assign fund balances which are not
otherwise restricted or committed. This category includes nonspendables, when it is the City’s
intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of
Special Revenue, Capital Projects and Debt Service Funds which have not been restricted or
committed.
Unassigned fund balance represents residual amounts that have not been restricted, committed, or
assigned. This includes the residual general fund balance and residual fund deficits, if any, of other
governmental funds.
Minimum Fund Balance Policies - The City’s Reserve Policy is to have the General Fund
Reserves equal to at least two months of operating revenues of 15% and up to 20%, which is in
alignment with GFOA best practices. Included is an emergency reserve that reflects 2% of the
general fund operating expenditures budget as well as an economic contingency which is 7% of
general fund revenues. Funds in excess of these requirements will continue to be earmarked for
paying down long-term liabilities, such as the Retiree Health/Other Post-Employment Benefits
(OPEB) or for Infrastructure and Facilities Replacement needs.
Detailed classifications of the City’s Fund Balances, as of June 30, 2019, are below:
Low and Moderate East of 101
General Income Housing Capital Sewer
Fund Balance Classifications Fund Assets Improvement Impact Fees
Nonspendables:
Items not in spendable form:
Inventory and prepaid items $372 $39,205
Total Nonspendable Fund Balances 372 39,205
Restricted for:
Sewer Impact Fees $4,436,134
Low and moderate housing projects $5,987,238
Redevelopment and community development activities 19,201,948
Total Restricted Fund Balances 19,201,948 5,987,238 4,436,134
Committed for:
Capital projects 3,889,594
Local services 18,730,274
Total Committed Fund Balances 22,619,868
Assigned to:
Capital projects 11,881,363
Total Assigned Fund Balances 11,881,363
Unassigned:
General fund 31,239,632
Capital Improvement Fund (2,971,345)
Total Unassigned Fund Balances 31,239,632 (2,971,345)
Total Fund Balances $84,943,183 $5,987,238 ($2,932,140) $4,436,134
(Continued)
Capital Project Funds
70
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 6 - NET POSITION AND FUND BALANCE (Continued)
East of 101 Capital Other
Traffic Child Care Developer Infrastructure Governmental
Fund Balance Classifications (continued) Impact Fees Impact Fees Deposit Reserve Fund Funds
Restricted for:
Traffic impact fees projects $20,593,457
Child Care impact fees projects $5,536,728
Developer deposit fees projects $9,616
Capital infrastructure projects $19,107,972
Gas Tax projects $522,122
Developer contributions projects 5,042,661
Community Development Block Grant projects 550,587
Maintenance districts projects 3,610,759
Transportation sales tax projects 3,408,661
City programs projects 4,547,134
Other Special Revenues projects 13,433,341
Capital projects activities 16,348,792
Total Restricted Fund Balances 20,593,457 5,536,728 9,616 19,107,972 47,464,057
Total Fund Balances $20,593,457 $5,536,728 $9,616 $19,107,972 $47,464,057
Capital Project Funds
C. Net Deficit
The Capital Improvement Capital Projects Fund had net deficit in the amount of $2,932,140.
Future revenues are expected to offset the deficit.
D. 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, 2019, were as listed below:
Governmental funds:Amount
General Fund $11,881,363
Low and Moderate Income Housing Assets
Special Revenue Fund 6,267
Capital Improvement Capital Projects Fund 18,444,492
Child Care Impact Fees Capital Projects Fund 1,500
Capital Infrastructure Reserve Capital Projects Fund 1,000,000
Other Governmental Funds 665,105
Total $31,998,727
71
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 7 - PENSION PLANS
For purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of the
City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions
to/deductions from the Plans’ fiduciary net position have been determined on the same basis as
they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including
refunds of employee contributions) are recognized when due and payable in accordance with the
benefit terms. Investments are reported at fair value.
A. General Information about the Pension Plans
Plan Descriptions – All qualified permanent and probationary employees are eligible to
participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Plans,
agent multiple-employer defined benefit pension plans administered by the California Public
Employees’ Retirement System (CalPERS), which acts as a common investment and
administrative agent for its participating member employers. Benefit provisions under the Plans
are established by State statute and City resolution.
CalPERS issues publicly available reports that include a full description of the pension plans
regarding benefit provisions, assumptions and membership information that can be found on the
CalPERS website.
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of
living adjustments and death benefits to plan members, who must be public employees and
beneficiaries. Benefits are based on years of credited service, equal to one year of full time
employment. Members with five years of total service are eligible to retire at age 50 with
statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10
years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957
Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments
for each plan are applied as specified by the Public Employees’ Retirement Law.
72
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 7 - PENSION PLAN (Continued)
The Plans’ provisions and benefits in effect at June 30, 2019, are summarized as follows:
Miscellaneous
Classic Plan Classic Plan PEPRA Plan
Hire date Prior to After On or after
April 25, 2010 April 25, 2010 January 1,2013
Benefit formula 2.7% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 50 - 55 50 - 67 52 - 67
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.092% to 2.418% 1.0% to 2.5%
Required employee contribution rates 8%7%6.5%
Required employer contribution rates 29.179%29.179%6.5%
Safety
Classic Plan Classic Plan PEPRA Plan
Hire date Prior to
April 25, 2010
After
April 25, 2010
On or after
January 1, 2013
Benefit formula 3% @ 50
3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 50 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 3% 2.4% to 3.0% 2.0% to 2.7%
Required employee contribution rates 9% 9% 11.5%
Required employer contribution rates 48.901% 48.901% 11.5%
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 were $4,506,009 and $5,959,860,
respectively, which were made under the lump sum payment option.
Employees Covered – As of the June 30, 2017 actuarial valuation date and the June 30, 2018
measurement date, the following employees were covered by the benefit terms for the Plans:
Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 440 284
Inactive employees entitled to but not yet receiving benefits 334 105
Active employees 281 159
Total 1,055 548
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.
73
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 7 - PENSION PLAN (Continued)
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 of the Plans is measured
as of June 30, 2018, using an annual actuarial valuation as of June 30, 2017 rolled forward to
June 30, 2018 using standard update procedures. A summary of principal assumptions and
methods used to determine the net pension liability is shown below.
Actuarial Assumptions – For the measurement period ended June 30, 2018, the total pension
liabilities were determined by rolling forward the June 30, 2017 total pension liability. The June
30, 2018 total pension liabilities were based on the following actuarial methods and 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) Net of pension plan investment and administrative expenses, including inflation
(2) The mortality table used was developed based on CalPERS' specific data. The tale includes 15 years
of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on
this table, please refer to the December 2017 experience study report (based on CalPERS demographic data
from 1997 to 2015) that can be found on the CalPERS website.
2.50%
Varies by Entry Age and Service
7.15% (1)
Contract COLA up to 2.00% until Purchasing Power Protection
Allowance Floor on Purchasing Power applies, 2.50% thereafter
Derived using CalPERS Membership Data for all Funds (2)
3.00%
Miscellaneous and Safety
June 30, 2017
June 30, 2018
Entry-Age Normal Cost Method
7.15%
The underlying mortality assumptions and all other actuarial assumptions used in the June 30,
2017 valuation were based on the results of a December 2017 actuarial experience study for the
period 1997 to 2015. Further details of the Experience Study can be found on the CalPERS
website.
Change of Assumptions – For the measurement date of June 30, 2018, the inflation rate reduced
from 2.75 percent to 2.50 percent.
Discount Rate – The discount rate used to measure the total pension liability was 7.15%. The
projection of cash flows used to determine the discount rate for each Plan assumed that
contributions from all plan members in the Public Employees Retirement Fund (PERF) will be
made at the current member contribution rates and that contributions from employers will be
made at statutorily required rates, actuarially determined. Based on those assumptions, each
Plan’s fiduciary net position was projected to be available to make all projected future benefits
payments of current plan members for all plans in the PERF. Therefore, the long- term expected
rate of return on plan investment was applied to all periods of projected benefit payment to
determine the total pension liability for each Plan.
74
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 7 - PENSION PLAN (Continued)
The long- term expected rate of return on pension plan investments was determined using a
building- block method in which best- estimate ranges of expected future real rates of return (
expected returns, net of pension plan investment expense and inflation) are developed for each
major asset class.
In determining the long- term expected rate of return, CalPERS took into account both short- term
and long- term market return expectations as well as the expected pension fund cash flows. Using
historical returns of all the fund’s asset classes, expected compound (geometric) returns were
calculated over the short- term (first 10 years) and the long -term (11+ years) using a building-
block approach Using the expected nominal returns for both short- term and long- term, the
present value of benefits was calculated for each fund. The expected rate of return was set by
calculating the single equivalent expected return that arrived at the same present value of benefits
for cash flows as the one calculated using both short- term and long- term returns. The expected
rate of return was then set equivalent to the single equivalent rate calculated above and adjusted
for assumed administrative expenses.
The table below reflects the long-term expected real rate of return by asset class. The rate of
return was calculated using the capital market assumptions applied to determine the discount rate
and asset allocation. These rates of return are net of administrative expenses.
Asset Class(a)
New
Strategic
Allocation
Real Return
Years 1 - 10(b)
Real Return
Years 11+(c)
Global Equity 50.0% 4.80% 5.98%
Fixed Income 28.0% 1.00% 2.62%
Inflation Assets 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Assets 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% -0.92%
Total 100%
(a)In the System's CAFR, Fixed income is included in Global Debt Securities; Liquidity is included
in short-term Investments; Inflation Assets are included in both Global Equity Securities and
Global Debt Securities.
(b) An expected inflation of 2.0% used for this period.
(c) An expected inflation of 2.92% used for this period.
75
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
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, 2017 $227,427,722 $149,962,251 $77,465,471
Changes in the year:
Service cost 4,001,207 4,001,207
Interest on the total pension liability 15,885,315 15,885,315
Changes of benefit terms
Chases of assumptions (1,361,078)
Differences between actual and expected experience 187,342 187,342
Plan to plan resource movement (365) 365
Contribution - employer 6,165,764 (6,165,764)
Contribution - employees 1,727,041 (1,727,041)
Net investment income 12,458,090 (12,458,090)
Benefit payments, including refunds of employee
contributions (12,164,689) (12,164,689)
Administrative expenses (233,683) 233,683
Other Miscellaneous Income/(Expense) (443,767) 443,767
Net changes 6,548,097 7,508,391 (960,294)
Balance at June 30, 2018 $233,975,819 $157,470,642 $76,505,177
Safety Plan:
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2017 $314,037,249 $208,630,800 $105,406,449
Changes in the year:
Service cost 6,511,672 6,511,672
Interest on the total pension liability 22,129,483 22,129,483
Changes of benefit terms
Chases of assumptions (1,293,579) (1,293,579)
Differences between actual and expected experience 1,318,613 1,318,613
Plan to plan resource movement (512) 512
Contribution - employer 9,323,936 (9,323,936)
Contribution - employees 2,134,552 (2,134,552)
Net investment income 17,363,158 (17,363,158)
Benefit payments, including refunds of employee
contributions (15,629,698) (15,629,698)
Administrative expenses (325,104) 325,104
Other Miscellaneous Income/(Expense)(617,378) 617,378
Net changes 13,036,491 12,248,954 787,537
Balance at June 30, 2018 $327,073,740 $220,879,754 $106,193,986
76
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 7 - PENSION PLAN (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following
presents the net pension liability of the City for each Plan, calculated using the discount rate for
each Plan, as well as what the City’s net pension liability would be if it were calculated using a
discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pension Liability $106,628,983 $151,151,365
Current Discount Rate 7.15% 7.15%
Net Pension Liability $76,505,177 $106,193,986
1% Increase 8.15% 8.15%
Net Pension Liability $51,566,615 $69,322,327
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, 2019, the City recognized pension expenses of $12,587,621 and
$17,406,955 for the Miscellaneous and Safety Plans, respectively. At June 30, 2019, 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 $6,851,612
Changes of assumptions 3,220,352 ($874,979)
Differences between actual and expected experience 628,106
Net differences between projected and actual earnings on
plan investments 422,905
Total $11,122,975 ($874,979)
Safety Plan:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $10,164,821
Changes of assumptions 7,095,088 ($913,115)
Differences between actual and expected experience 2,711,451 (152,544)
Net differences between projected and actual earnings on
plan investments 684,378
Total $20,655,738 ($1,065,659)
Grand Total $31,778,713 ($1,940,638)
77
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 7 - PENSION PLAN (Continued)
$17,016,433 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, 2020. 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
2020 $5,252,328
2021 99,663
2022 (1,565,708)
2023 (389,899)
Safety Plan:
Year Ended Annual
June 30 Amortization
2020 $9,406,529
2021 2,680,468
2022 (2,131,680)
2023 (530,059)
NOTE 8 - DEFERRED COMPENSATION PLAN
A. 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 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) Plan
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 plans.
Plan Description – The City’s Post Employment Benefit Plan is an agent multiple-employer
defined benefit OPEB plan.
78
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS (Continued)
Benefits provided – The following is a summary of Plan benefits by employee group as of June 30,
2019:
Eligibility • Hired < 4/25/20101
• 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 2017/18:
- $1,184.63/month pre-65 (Blue Shield)
- $649.97/month post-65 Medical eligible (Blue Shield)
- $1,746.70/ month post-65 not Medicare eligible (Kaiser)
• Medicare ineligible retirees allowed to stay in their pre-Medicare premium
plans after age 65
Surviving Spouse Benefit • Participation with premium payment
• AFSCME, Local 1569, Mid-Management, IAFF
surviving spouses covered 2 months following death of retiree
Other OPEB • City also reimburses Medicare Part B
• No City-paid contribution for dental, vision, or life
For the year ended June 30, 2019, the City’s contributions to the Plan were $4,180,000.
Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the
measurement date of June 30, 2018:
Active employees 388
Inactive employees or beneficiaries currently
receiving benefit payments 231
Total 619
79
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS (Continued)
B. Net OPEB Liability
Actuarial Methods and Assumptions – The City’s net OPEB liability was measured as of June
30, 2018 and the total OPEB liability used to calculate the net OPEB liability was determined by
an actuarial valuation dated June 30, 2017 that was rolled forward using standard update
procedures to determine the total OPEB liability as of June 30, 2108, based on the following
actuarial methods and assumptions:
Valuation Date • June 30, 2017
Measurement Date • June 30, 2018
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 24 years remaining for 2018/19
• 6.75% at June 30, 2018
• 6.75% at June 30, 2017
• Expected City contributions projected to keep sufficient plan
assets to pay all benefits from trust.
Inflation • 2.75% per annum
Salary Increases • Aggregate - 3%
• Merit - CalPERS 1997-2015 Experience Study
Healthcare/Medical Trend • Non-Medicare - 7.5% for 2020, decreasing to an ultimate rate
of 4.0% in 2076 and later years
• Medicare - 6.5% for 2020, decreasing to an ultimate rate of
4.0% in 2076 and later years
Mortality, Retirement, Disability, Termination • CalPERS 1997-2015 Experience Study
Mortality Improvement • Pre-retirement mortality: projected 15-year static with 90% of
MP-2016
• Post-retirement mortality: projected fully generational with
Healthcare participation for future retirees • 100% if covered, 95% if waived
Discount Rate and Long-Term Expected
Rate of Return on Assets
Actuarial Assumptions
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 57.0% 4.82%
Fixed income 27.0% 1.47%
TIPS 5.0% 1.29%
Commodities 3.0% 0.84%
REITs 8.0% 3.76%
Total 100.0%
Assumed Long-Term Rate of Inflation 2.75%
Expected Long-Term Net Rate of Return 6.75%
80
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS (Continued)
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.
C. 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, 2017 Measurement Date $79,000 $19,710 $59,290
Changes Recognized for the Measurement Period:
Service Cost 1,535 1,535
Interest on the total OPEB liability 5,325 5,325
Changes in benefit terms
Differences between expected and actual experience 91 91
Changes of assumptions
Contributions from the employer 4,128 (4,128)
Net investment income 1,566 (1,566)
Benefit payments (3,326) (3,326)
Administrative expenses (37)37
Net changes 3,625 2,331 1,294
Balance at June 20, 2018 Measurement Date $82,625 $22,041 $60,584
Increase (Decrease) Amounts in 000's
The Plan does not issue separate financial statements.
D.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) (Amounts in 000's)
Discount Rate -1% Current Discount Rate Discount Rate +1%
(5.75%) (6.75%) (7.75%)
$72,219 $60,584 $51,052
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) (Amounts in 000's)
Current Healthcare Cost
1% Decrease Trend Rates 1% Increase
$49,567 $60,584 $74,215
81
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS (Continued)
E.OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2019, the City recognized OPEB expense of $5,420,533. At June 30,
2019, the City reported deferred outflows and inflows of resources related to OPEB from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Employer contributions made subsequent to the measurement date $4,180,000
Differences between actual and expected experience 68,000
Changes of assumptions
Net differences between projected and actual earnings on
plan investments $544,000
Total $4,248,000 $544,000
$4,180,000 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,
2020. 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
2020 ($143,000)
2021 (143,000)
2022 (145,000)
2023 (45,000)
NOTE 10 - 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.
82
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 10 - JOINTLY GOVERNED ORGANIZATIONS (continued)
B.Peninsula Traffic Congestion Relief Alliance
(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 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 Daly City 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) was established in 1990 by the County of San Mateo and the Cities of San Mateo
County for preparation, adoption, monitoring and enforcing of Countywide state mandated plans.
A Board of Directors consisting of one council member from each member city and one member
from the County Board of Supervisors governs C/CAG. The city treasurer of San Carlos acts as
the treasurer of C/CAG. The individual cities and the County are not liable for the debts,
liabilities, or obligations of C/CAG. Condensed unaudited cash basis financial information may
be obtained from the City of San Carlos Finance Department, 666 Elm Street, San Carlos, CA
94070.
NOTE 11 - 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
$2,500,000 of self- funded general liability and automobile coverage and $27,500,000 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, 2019, the City paid PLAN JPA $1,188,549 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
CSAC Excess Insurance Authority $500,000 self-insured retention. For the past five fiscal years,
general liability and worker compensation settlements did not exceed insurance coverage.
83
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 11 - RISK MANAGEMENT (Continued)
B. Liability for Uninsured Claims
The City provides for the uninsured portion of claims and judgments in the Self Insurance
Internal Service Fund. Claims and judgments, including a provision for claims incurred but not
reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is
reasonably determinable. As discussed above, the City has coverage for such claims, but it has
retained the risk for the deductible or uninsured portion of these claims.
The City’s liability for uninsured claims is limited to workers’ compensation and general liability
claims, as discussed above, and was estimated by management based on prior year’s claims
experience as follows:
June 30, 2019 Fiscal Year
Workers' General 2017-2018
Compensation Liability Total Total
Balance, beginning of year $12,695,000 $98,356 $12,793,356 $12,972,942
Current year claims and changes in
estimates of prior years claims 4,537,248 496,109 5,033,357 1,851,121
Claims Paid (3,092,248) (283,212) (3,375,460) (2,030,707)
Balance, end of year $14,140,000 $311,253 $14,451,253 $12,793,356
Current portion $562,000 $150,000 $712,000 $660,356
NOTE 12 - COMMITMENTS AND CONTINGENCIES
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.
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.
84
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 12 - COMMITMENTS AND CONTINGENCIES (Continued)
A. Rental Revenues From Use of City Property
The Conference Center Authority, a discrete component unit, leases land from the City under an
operating lease commencing on January 1, 1999, with a 30-year term from February 1, 1999, to
January 31, 2029. The rent amount is subject to re-negotiation at the option of either party
between January 1 and February 28, 2009 and 2019. These leases are considered for accounting
purposes to be operating leases. Property lease revenue from the Conference Center Authority
during the year fiscal year ended June 30, 2019, was $420,000. The cost and carrying amount of
leased land under this lease receivable is $5,040,000. Future minimum lease payments from the
Conference Center Authority land leases are as follows:
Component Unit
Year ending June 30 Conference Center
2020 $420,000
2021 420,000
2022 420,000
2023 420,000
2024 420,000
2025-2029 2,100,000
Total $4,200,000
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. In fiscal 2019 lease payments were $400,000.
Magnolia Housing leases the land for Magnolia Plaza Senior Apartments from the City.
Minimum lease payments are set at $51,800, and are payable through the fiscal year 2062. In
fiscal year 2019 lease payments were $51,800.
85
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 12 - COMMITMENTS AND CONTINGENCIES (Continued)
Future minimum lease revenues for the Costco and Magnolia Plaza leases are as follows:
Year ending June 30: Costco Magnolia Plaza Total
2020 $400,000 $51,800 $451,800
2021 400,000 51,800 451,800
2022 400,000 51,800 451,800
2023 400,000 51,800 451,800
2024 400,000 51,800 451,800
2025-2029 2,000,000 259,000 2,259,000
2030-2034 2,000,000 259,000 2,259,000
2035-2039 259,000 259,000
2040-2044 259,000 259,000
2045-2049 259,000 259,000
2050-2054 259,000 259,000
2055-2059 259,000 259,000
2060-2062 155,400 155,400
$6,000,000 $2,227,400 $8,227,400
NOTE 13 - 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.
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, 2019 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, 2019.
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.
86
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 13 - FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
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.
87
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 13 - FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
Capital assets recorded at June 30 are comprised of:
Balance Transfers to the City Balance
June 30, 2018 Additions Adjustments of South San Francisco June 30, 2019
Fiduciary activities
Capital assets not being depreciated:
Land $940,534 ($829,315) $111,219
Total capital assets not
being depreciated 940,534 (829,315) 111,219
Capital assets being depreciated:
Buildings and Improvements 329,671 329,671
Equipment and Vehicle 242,190 242,190
Furniture and Fixtures 21,506 21,506
Total capital assets being depreciated 593,367 593,367
Less accumulated depreciation for:
Buildings and Improvements (65,274) ($6,593) $100 (71,767)
Equipment and Vehicle (241,965) (226) (242,191)
Furniture and Fixtures (21,505)(21,505)
Total accumulated depreciation (328,744) (6,819) 100 (335,463)
Net capital assets being depreciated 264,623 (6,819) 100 257,904
Fiduciary activity capital assets, net $1,205,157 ($6,819)$100 ($829,315) $369,123
Current year transfers to the City of South San Francisco represent property transferred from
capital assets in the Successor Agency to property held for redevelopment in the City’s General
Fund, which has been reported as a Special Item.
D. Long-Term Debt
All of the long-term debt of the Successor Agency were issued by the former Redevelopment
Agency. Current year transactions were as follows:
Balance Balance Current
Type of Obligation June 30, 2018 Retirements June 30, 2019 Portion
1999 Revenue Bonds, 3.3 to 5.0%, due 9/1/18 $285,000 ($285,000)
Total Successor Agency $285,000 ($285,000)
88
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 13 - FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
On February 1, 1999, the City of South San Francisco Capital Improvements Financing Authority
(CIFA) issued $31,720,000 of 1999 Revenue Bonds to provide funds to pay loans (Homart
Development), to finance redevelopment and housing activities and to refund the 1993 Gateway
tax allocation bonds, which were due in 2018. The 1999 revenue bonds are obligations of the
CIFA although the Redevelopment Agency is required to make bond principal and interest
payments from the Gateway increment tax and housing set-aside revenues. The 1999 Revenue
Bonds are, in substance, obligations of the Redevelopment Agency, and have therefore been
recorded as such in these financial statements. On April 16, 2006, the Gateway principal portion
of the $23,860,000 was refunded as discussed in (1) above. The housing bonds became
obligations of the Redevelopment Successor Agency. Net proceeds of $9,614,978 of the 1999
Revenue Bonds plus an additional $956,470 of 1993 bond reserve funds were used to purchase
U.S. government securities. Those securities were deposited in an irrevocable trust with an
escrow agent to provide for all future debt service payments on the 1993 bonds. As a result, the
1993 bonds are considered to be defeased and the liability for those bonds has been removed. The
1999 Revenue Bonds were repaid in fiscal year 2019.
E. POLLUTION REMEDIATION
In fiscal 2010, the former Redevelopment Agency purchased an unimproved parcel adjacent to
the Caltrain Commuter Rail station from the State of California. The current rail station is among
the oldest on the peninsula, is under the freeway, is small, has limited parking, and is not adjacent
to the Downtown due to the freeway. The Successor Agency will contribute that site to the
County Transportation Agency for the future reconfiguration of that rail station after the County
secures necessary funding from other sources. The Successor Agency’s contribution will include
use of the purchased parcel in order to make the station safer, more visually pleasing, more usable
to commuters and business shuttles, and to make the Downtown accessible to pedestrians to and
from the train station. As part of that land purchase, the price paid by the former Agency to the
State was discounted to give the former Agency credit in the amount of $537,000 against known
pollution remediation costs on the site. If the funding from the County for the station
reconfiguration does not materialize, and if construction does not occur on that site, the pollution
mitigation costs will be much less.
F. 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.
89
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2019
NOTE 13 - FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
State Asset Transfer Review
The activities of the former Redevelopment Agency and the Successor Agency are subject to
further examination by the State of California and the amount, if any, of expenditures which may
be disallowed by the State cannot be determined at this time. In addition, the State Controller’s
Office will be conducting 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 and the amount, if any, of assets that may be required to be returned to the
Successor Agency cannot be determined at this time. The City expects such amounts, if any, to
be immaterial.
90
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2019
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
Total Pension Liability
Service cost $3,449,973 $3,075,813 $3,079,994 $3,922,518 $4,001,207
Interest on total pension liability 13,930,544 14,393,013 14,870,988 15,430,998 15,885,315
Changes of benefit terms
Changes of assumptions (3,374,655)12,421,358 (1,361,078)
Difference between expected and actual experience (1,567,798) (476,337) 1,958,164 187,342
Benefit payments, including refunds of employee
contributions (9,287,975) (10,407,243) (11,085,829) (11,565,392) (12,164,689)
Net change in total pension liability 8,092,542 2,119,130 6,388,816 22,167,646 6,548,097
Total pension liability - beginning 188,659,588 196,752,130 198,871,260 205,260,076 227,427,722
Total pension liability - ending (a)$196,752,130 $198,871,260 $205,260,076 $227,427,722 $233,975,819
Plan fiduciary net position
Contributions - employer $4,235,454 $4,546,984 $5,726,981 $5,228,454 $6,165,764
Contributions - employee 1,466,176 1,411,273 1,622,453 1,720,600 1,727,041
Net investment income 21,712,340 3,221,551 687,860 15,616,363 12,458,090
Benefit payments, including refunds of employee
contributions (9,287,975) (10,407,243) (11,085,829) (11,565,392) (12,164,689)
Plan to plan resource movement (50,555) 229 (365)
Administrative expense (160,268) (86,726) (205,472) (233,683)
Other miscellaneous income (443,767)
Net change in plan fiduciary net position 18,125,995 (1,438,258) (3,135,032) 10,794,553 7,508,391
Plan fiduciary net position - beginning 125,614,993 143,740,988 142,302,730 139,167,698 149,962,251
Plan fiduciary net position - ending (b)$143,740,988 $142,302,730 $139,167,698 $149,962,251 $157,470,642
Net pension liability - ending (a)-(b)$53,011,142 $56,568,530 $66,092,378 $77,465,471 $76,505,177
Plan fiduciary net position as a percentage of the total
pension liability 73.06% 71.56% 67.80% 65.94% 67.30%
Covered payroll $17,725,581 $17,798,104 $21,409,193 $29,390,370 $23,630,354
Net pension liability as percentage of covered-employee
payroll 299.07% 317.83% 308.71% 263.57% 323.76%
Notes to Schedule:
*Fiscal year 2015 was the 1st year of implementation.
Changes in assumptions:In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In
2016 and 2018, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from
7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative
expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
Benefit changes:The figures above do not include any liability impact that may have resulted from plan changes
which occurred after the June 30, 2016 valuation date. This applies for voluntary benefit changes as well as any
offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
92
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2019
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 $6,851,612
Contributions in relation to the actuarially
determined contributions 4,210,973 5,399,856 5,228,454 6,166,024 6,851,612
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-
employee payroll 23.66% 25.22% 17.79% 26.09% 27.41%
Notes to Schedule
Valuation date: 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age
Amortization method Level percentage of payroll
Remaining amortization period 24 years as of the Valuation Date
Asset valuation method 15-year smoothed market
Inflation 2.75%
Salary increases
Investment rate of return
Retirement age
Mortality
*Fiscal year 2015 was the 1st year of implementation
Varies by entry age and service
7.50% net of administrative expenses
The probabilities of Retirement are based on the
2010 CalPERS Experience Study for the period from
1997 to 2007
The probabilities of mortality are based on the 2014
CalPERS Experience Study for the period from 1997
to 2007. Pre-retirement and Post-retirement mortality
rates include 20 years of projected mortality
improvement using Scale AA published by the
Society of Actuaries
93
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2019
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
Total Pension Liability
Service cost $5,143,842 $4,968,087 $5,329,842 $6,264,307 $6,511,672
Interest on total pension liability 18,899,544 19,398,484 20,134,558 21,238,842 22,129,483
Changes of benefit terms
Changes of assumptions (4,789,129)18,010,606 (1,293,579)
Difference between expected and actual experience (4,226,388)(915,267) 4,520,149 1,318,613
Benefit payments, including refunds of employee
contributions (13,161,296) (13,556,606) (14,463,995) (14,760,979) (15,629,698)
Net change in total pension liability 10,882,090 1,794,448 10,085,138 35,272,925 13,036,491
Total pension liability - beginning 256,002,648 266,884,738 268,679,186 278,764,324 314,037,249
Total pension liability - ending (a)$266,884,738 $268,679,186 $278,764,324 $314,037,249 $327,073,740
Plan fiduciary net position
Contributions - employer $6,535,399 $7,191,715 $8,535,737 $8,071,060 $9,323,936
Contributions - employee 2,151,163 1,714,039 1,961,907 1,980,507 2,134,552
Net investment income 29,348,051 4,264,997 950,612 21,553,126 17,363,158
Benefit payments, including refunds of employee
contributions (13,161,296) (13,556,606) (14,463,995) (14,760,979) (15,629,698)
Plan to plan resource movement (229) (512)
Administrative expense (219,696) (118,968) (283,579) (325,104)
Other miscellaneous income (617,378)
Net change in plan fiduciary net position 24,873,317 (605,551) (3,134,936) 16,560,135 12,248,954
Plan fiduciary net position - beginning 170,937,835 195,811,152 195,205,601 192,070,665 208,630,800
Plan fiduciary net position - ending (b)$195,811,152 $195,205,601 $192,070,665 $208,630,800 $220,879,754
Net pension liability - ending (a)-(b)$71,073,586 $73,473,585 $86,693,659 $105,406,449 $106,193,986
Plan fiduciary net position as a percentage of the total
pension liability 73.37%72.65%68.90%66.44%67.53%
Covered payroll $15,994,412 $16,679,857 $18,986,895 $19,563,549 $21,932,480
Net pension liability as percentage of covered-employee
payroll 444.37%440.49%456.60%538.79% 484.19%
Notes to Schedule:
*Fiscal year 2015 was the 1st year of implementation.
Benefit changes.The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30,
2016 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 percent to 7.15 percent. In 2016 and 2018, there were no
changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent
(without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
94
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2019
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-
employee payroll 43.12%44.97% 41.26% 42.51% 44.24%
Notes to Schedule
Valuation date:6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age
Amortization method Level percentage of payroll
Remaining amortization period 24 years as of the Valuation Date
Asset valuation method 15-year smoothed market
Inflation 2.75%
Salary increases
Investment rate of return
Retirement age
Mortality
Varies by entry age and service
7.50% net of administrative expenses
The probabilities of Retirement are based on the 2010
CalPERS Experience Study for the period from 1997 to
The probabilities of mortality are based on the 2014
CalPERS Experience Study for the period from 1997 to
2007. Pre-retirement and Post-retirement mortality rates
include 20 years of projected mortality improvement using
Scale AA published by the Society of Actuaries
95
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2019
Measurement Date 6/30/17 6/30/18
Total OPEB Liability
Service Cost $1,574 $1,535
Interest 5,087 5,325
Changes in benefit terms
Differences between expected and actual experience 91
Changes of assumptions
Benefit payments (2,901)(3,326)
Net change in total OPEB liability 3,760 3,625
Total OPEB liability - beginning 75,240 79,000
Total OPEB liability - ending (a)$79,000 $82,625
Plan fiduciary net position
Contributions - employer $3,703 $4,128
Contributions - employee
Net investment income 1,803 1,566
Administrative expense (9)(37)
Benefit payments (2,901)(3,326)
Net change in plan fiduciary net position 2,596 2,331
Plan fiduciary net position - beginning 17,114 19,710
Plan fiduciary net position - ending (b)$19,710 $22,041
Net OPEB liability - ending (a)-(b)$59,290 $60,584
Plan fiduciary net position as a percentage of the total OPEB liability 24.95%26.68%
Covered-employee payroll $26,539 $26,986
Net OPEB liability as a percentage of covered-employee payroll 223.41%224.50%
*Fiscal year 2018 was the first year of implementation.
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)
96
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2019
Fiscal Year Ended June 30, 2018 2019
Actuarially determined contribution $6,279 $6,839
Contributions in relation to the
actuarially determined contribution 4,128 4,180
Contribution deficiency (excess)$2,151 $2,659
Covered-employee payroll $26,986 $27,662
Contributions as a percentage of
covered-employee payroll 7.97%9.61%
*Fiscal year 2018 was the first year of implementation.
SCHEDULE OF CONTRIBUTIONS
Retiree Healthcare OPEB Plan - Agent Multiple Employer
Last 10 fiscal years*
(Amounts in 000's)
Valuation Date June 30, 2017
Actuarial Cost Method Entry Age Normal, Level Percentage of Payroll
Amortization Method Level dollar
Amortization Period Average of 24 years remaining for 2018/19
Asset Valuation Method Investment gains and losses spread over 5-year rolling period
Discount Rate 6.75%
General Inflation 2.75%
Medical Trend • Non-Medicare - 7.5% for 2020, decreasing to an ultimate rate of 4% in
2076
Mortality, Retirement,
Disability, Termination •CalPERS 1997-2015 Experience Study
Mortality Improvement
•Pre-retirement mortality: projected 15-year static with 90% of MP-2016
• Post-retirement mortality: projected fully generational with Scale MP-2017
Retiree Healthcare OPEB Plan - Agent Multiple Employer
NOTES TO SCHEDULE OF EMPLOYER CONTRIBUTION
Methods and Assumptions for Actuarially Determined Contribution
97
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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.
101
General Purpose Measure W Total
ASSETS
Cash and investments $44,024,794 $16,751,107 $60,775,901
Receivables:
Accounts 6,589,435 1,991,842 8,581,277
Accrued interest 274,790 274,790
Due from other funds 1,100,000 1,100,000
Due from Conference Center 53,589 53,589
Advances to other funds
Inventory 372 372
Restricted cash and investments 200,000 200,000
Properties held for redevelopment 19,201,948 19,201,948
Total Assets $71,444,928 $18,742,949 $90,187,877
LIABILITIES
Accounts payable $2,609,145 $2,609,145
Accrued salaries and benefits 1,659,795 1,659,795
Other payable 65,755 65,755
Deposits 763,563 763,563
Unearned revenue 146,436 146,436
Total Liabilities 5,244,694 5,244,694
FUND BALANCES
Nonspendable 372 372
Restricted 19,201,948 19,201,948
Committed 3,889,594 $18,730,274 22,619,868
Assigned 11,868,688 12,675 11,881,363
Unassigned 31,239,632 31,239,632
Total Fund Balances 66,200,234 18,742,949 84,943,183
Total Liabilities and Fund Balances $71,444,928 $18,742,949 $90,187,877
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING BALANCE SHEETS
JUNE 30, 2019
102
Intra-Fund
Transactions
General Purpose Measure W Elimination Total
REVENUES
Property taxes $38,659,657 $38,659,657
Sales taxes 19,606,689 $12,644,947 32,251,636
Transient occupancy taxes 17,091,222 17,091,222
Franchise Fees 4,469,808 4,469,808
Other taxes 4,995,404 4,995,404
Intergovernmental 2,876,545 2,876,545
Interest and rentals 4,409,185 4,409,185
Licenses and permits 15,381,416 15,381,416
Charges for services 11,563,755 11,563,755
Fines and forfeitures 926,729 926,729
Other 330,881 330,881
Total Revenues 120,311,291 12,644,947 132,956,238
EXPENDITURES
Current:
City Council 258,760 258,760
City Clerk 770,985 770,985
City Treasurer 123,505 123,505
City Attorney 961,588 961,588
City Manager 2,298,368 40,974 2,339,342
Finance 2,789,187 2,789,187
Non-departmental 1,219,533 1,219,533
Human Resources 1,621,409 1,621,409
Fire 27,572,488 27,572,488
Police 28,482,445 28,482,445
Public Works 5,787,782 5,787,782
Parks and Recreation 16,530,603 16,530,603
Library 5,628,693 5,628,693
Economic and Community Development 8,433,298 8,433,298
Total Expenditures 102,478,644 40,974 102,519,618
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 17,832,647 12,603,973 30,436,620
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 840,298 840,298
Transfers in 4,906,791 ($2,236,224) 2,670,567
Transfers out (4,289,797) (7,706,030) 2,236,224 (9,759,603)
Total Other Financing Sources (Uses)1,457,292 (7,706,030)(6,248,738)
Net Change in Fund Balances before special items 19,289,939 4,897,943 24,187,882
SPECIAL ITEMS
Assets transferred from the
Successor Agency 829,315 829,315
Remittance of land sale proceeds (1,360,906)(1,360,906)
Net Change in Fund Balances 18,758,348 23,656,291
Fund balances (deficits) - July 1 47,441,886 13,845,006 61,286,892
Fund balances (deficits) - June 30 $66,200,234 $18,742,949 $84,943,183
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2019
103
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, 2019
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $34,555,659 $35,345,744 $38,659,657 $3,313,913
Sales taxes 17,203,726 17,203,726 19,606,689 2,402,963
Transient occupancy taxes 15,834,000 15,834,000 17,091,222 1,257,222
Franchise fees 4,000,000 4,000,000 4,469,808 469,808
Other taxes 5,833,028 5,833,028 4,995,404 (837,624)
Intergovernmental 1,473,470 3,412,076 2,876,545 (535,531)
Interest and rentals 3,059,459 3,059,459 4,409,185 1,349,726
Licenses and permits 12,072,049 12,072,049 15,381,416 3,309,367
Charges for services 8,988,527 9,328,528 11,563,755 2,235,227
Fines and forfeitures 618,500 618,500 926,729 308,229
Other 178,171 289,171 330,881 41,710
Amounts available for appropriation 103,816,589 106,996,281 120,311,291 13,315,010
Charges to appropriations (outflows)
City Council 280,694 280,694 258,760 21,934
City Clerk 817,567 817,567 803,909 13,658
City Treasurer 132,900 132,900 123,505 9,395
City Attorney 1,063,691 1,081,462 961,588 119,874
City Manager 2,958,815 5,684,184 5,310,426 373,758
Finance 3,022,116 3,384,364 3,173,973 210,391
Non-departmental 1,072,087 1,130,087 1,265,202 (135,115)
Human Resources 1,535,163 1,780,097 1,745,612 34,485
Fire 27,711,586 29,104,944 28,621,268 483,676
Police 29,174,475 29,254,475 28,482,445 772,030
Public Works 6,284,775 6,512,375 6,831,377 (319,002)
Parks and Recreation 16,294,509 17,103,184 16,795,119 308,065
Library 5,806,294 6,149,808 5,655,551 494,257
Economic and Community Development 9,009,367 12,443,981 14,318,597 (1,874,616)
Total charges to appropriations 105,164,039 114,860,122 114,347,332 512,790
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 2,250,000 2,250,000 840,298 (1,409,702)
Transfers in 2,987,105 5,579,214 4,906,791 (672,423)
Transfers out (2,883,001) (5,637,057) (4,289,797) 1,347,260
Total Other Financing Sources (Uses) 2,354,104 2,192,157 1,457,292 (734,865)
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS 1,006,654 (5,671,684) 7,421,251 13,092,935
SPECIAL ITEMS
Assets transferred from the
Successor Agency 829,315 829,315
Remittance of land sale proceeds (1,360,906) (1,360,906)
Net Change in Fund Balances $1,006,654 ($5,671,684) 6,889,660 $12,561,344
Fund Balance - July 1 47,441,886
Adjustment to budgetary basis:
Encumbrance adjustments 11,868,688
Fund Balance - June 30 $66,200,234
(Continued)
Budgeted Amounts
General Purpose
104
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, 2019
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes
Sales taxes $9,731,450 $12,158,000 $12,644,947 $486,947
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 9,731,450 12,158,000 12,644,947 486,947
Charges to appropriations (outflows)
City Council
City Clerk
City Treasurer
City Attorney
City Manager 53,649 53,649
Finance
Non-departmental
Human Resources
Fire
Police
Public Works
Parks and Recreation
Library
Economic and Community Development
Total charges to appropriations 53,649 53,649
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets
Transfers in
Transfers out (7,706,030) (7,706,030)
Total Other Financing Sources (Uses)(7,706,030) (7,706,030)
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS 9,731,450 12,104,351 4,885,268 (7,219,083)
SPECIAL ITEMS
Assets transferred from the
Successor Agency
Remittance of land sale proceeds
Net Change in Fund Balances $9,731,450 $12,104,351 4,885,268 ($7,219,083)
Fund Balance - July 1 13,845,006
Adjustment to budgetary basis:
Encumbrance adjustments 12,675
Fund Balance - June 30 $18,742,949
(Continued)
Budgeted Amounts
Measure W
105
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, 2019
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $34,555,659 $35,345,744 $38,659,657 $3,313,913
Sales taxes 26,935,176 29,361,726 32,251,636 2,889,910
Transient occupancy taxes 15,834,000 15,834,000 17,091,222 1,257,222
Franchise fees 4,000,000 4,000,000 4,469,808 469,808
Other taxes 5,833,028 5,833,028 4,995,404 (837,624)
Intergovernmental 1,473,470 3,412,076 2,876,545 (535,531)
Interest and rentals 3,059,459 3,059,459 4,409,185 1,349,726
Licenses and permits 12,072,049 12,072,049 15,381,416 3,309,367
Charges for services 8,988,527 9,328,528 11,563,755 2,235,227
Fines and forfeitures 618,500 618,500 926,729 308,229
Other 178,171 289,171 330,881 41,710
Amounts available for appropriation 113,548,039 119,154,281 132,956,238 13,801,957
Charges to appropriations (outflows)
City Council 280,694 280,694 258,760 21,934
City Clerk 817,567 817,567 803,909 13,658
City Treasurer 132,900 132,900 123,505 9,395
City Attorney 1,063,691 1,081,462 961,588 119,874
City Manager 2,958,815 5,737,833 5,364,075 373,758
Finance 3,022,116 3,384,364 3,173,973 210,391
Non-departmental 1,072,087 1,130,087 1,265,202 (135,115)
Human Resources 1,535,163 1,780,097 1,745,612 34,485
Fire 27,711,586 29,104,944 28,621,268 483,676
Police 29,174,475 29,254,475 28,482,445 772,030
Public Works 6,284,775 6,512,375 6,831,377 (319,002)
Parks and Recreation 16,294,509 17,103,184 16,795,119 308,065
Library 5,806,294 6,149,808 5,655,551 494,257
Economic and Community Development 9,009,367 12,443,981 14,318,597 (1,874,616)
Total charges to appropriations 105,164,039 114,913,771 114,400,981 512,790
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 2,250,000 2,250,000 840,298 (1,409,702)
Transfers in 2,987,105 5,579,214 4,906,791 (672,423)
Transfers out (2,883,001) (5,637,057) (11,995,827) (6,358,770)
Total Other Financing Sources (Uses) 2,354,104 2,192,157 (6,248,738) (8,440,895)
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS 10,738,104 6,432,667 12,306,519 5,873,852
SPECIAL ITEMS
Assets transferred from the
Successor Agency 829,315 829,315
Remittance of land sale proceeds (1,360,906) (1,360,906)
Net Change in Fund Balances $10,738,104 $6,432,667 11,774,928 $5,342,261
Fund Balance - July 1 61,286,892
Adjustment to budgetary basis:
Encumbrance adjustments 11,881,363
Fund Balance - June 30 $84,943,183
Budgeted Amounts
Total
106
MAJOR GOVERNMENTAL FUNDS OTHER THAN
GENERAL FUND AND SPECIAL REVENUE FUNDS
CAPITAL IMPROVEMENT FUND
To account for expenditures associated with the acquisition, construction, or improvement of City owned
facilities and infrastructure. Funding comes from the general fund, special revenue funds, grants and fees.
EAST OF 101 SEWER IMPACT FEES CAPITAL PROJECTS FUND
These fees provide new development’s share of new and rehabilitated sewer collection and treatment
facilities to serve the East of Highway 101 area.
EAST OF 101 TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND
These fees are to provide new development’s share of new and expanded roadway and intersection
improvements to serve the East of Highway 101 area.
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.
DEVELOPER DEPOSIT CAPITAL PROJECTS FUND
These fees provide new development’s share of funding for the Oyster Point at Highway 101 interchange
improvements.
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).
107
CITY OF SOUTH SAN FRANCISCO
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2019
Variance with
Final Budget
Positive
Budget Actual Amounts (Negative)
REVENUES:
Intergovernmental $20,637,483 $6,641,789 ($13,995,694)
Charges for services 2,820,480 (2,820,480)
Other 850,000 850,000
Total Revenues 24,307,963 7,491,789 (16,816,174)
EXPENDITURES:
Current:
Public works 73,285,530 44,153,321 29,132,209
Total Expenditures 73,285,530 44,153,321 29,132,209
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (48,977,567) (36,661,532) 12,316,035
OTHER FINANCING SOURCES (USES)
Transfers in 48,448,954 15,087,484 (33,361,470)
Total other financing sources (uses) 48,448,954 15,087,484 (33,361,470)
NET CHANGE IN FUND BALANCE ($528,613) (21,574,048) ($21,045,435)
Fund balance - July 1 197,416
Adjustment to budgetary basis:
Encumbrance adjustments 18,444,492
Fund balance - June 30 ($2,932,140)
108
CITY OF SOUTH SAN FRANCISCO
EAST OF 101 SEWER IMPACT FEES CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2019
Variance with
Final Budget
Positive
Budget Actual Amounts (Negative)
REVENUES:
Interest and rental $100,304 $100,304
Charges for services 1,781,407 1,781,407
Total Revenues 1,881,711 1,881,711
EXPENDITURES:
Current:
Non-departmental $2,652 2,652
Total Expenditures 2,652 2,652
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (2,652) 1,879,059 1,881,711
OTHER FINANCING SOURCES (USES)
Transfers out (3,527,395) (281,827) 3,245,568
Total other financing sources (uses) (3,527,395) (281,827) 3,245,568
NET CHANGE IN FUND BALANCE ($3,530,047) 1,597,232 $5,127,279
Fund balance (deficit) - July 1 2,838,902
Fund balance (deficit) - June 30 $4,436,134
109
CITY OF SOUTH SAN FRANCISCO
EAST OF 101 TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2019
Variance with
Final Budget
Positive
Budget Actual Amounts (Negative)
REVENUES:
Interest and rental $533,381 $533,381
Charges for services 8,304,582 8,304,582
Total Revenues 8,837,963 8,837,963
EXPENDITURES:
Current:
Public works $2,652 2,652
Total Expenditures 2,652 2,652
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (2,652) 8,835,311 8,837,963
OTHER FINANCING SOURCES (USES)
Transfers (out) (5,942,618) (701,659) 5,240,959
Total other financing sources (uses) (5,942,618) (701,659) 5,240,959
NET CHANGE IN FUND BALANCE ($5,945,270) 8,133,652 $14,078,922
Fund balance - July 1 12,459,805
Fund balance - June 30 $20,593,457
110
CITY OF SOUTH SAN FRANCISCO
CHILD CARE IMPACT FEES CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2019
Variance with
Final Budget
Positive
Budget Actual Amounts (Negative)
REVENUES:
Interest and rental $172,624 $172,624
Charges for services 747,845 747,845
Total Revenues 920,469 920,469
EXPENDITURES:
Current:
Non-departmental $2,652 2,652
Public Works 99,988 75,000 (24,988)
Total Expenditures 102,640 77,652 (24,988)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (102,640) 842,817 945,457
NET CHANGE IN FUND BALANCE ($102,640) 842,817 $945,457
Fund balance - July 1 4,692,411
Adjustment to budgetary basis:
Encumbrance adjustments 1,500
Fund balance - June 30 $5,536,728
111
CITY OF SOUTH SAN FRANCISCO
DEVELOPER DEPOSIT CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2019
Variance with
Final Budget
Final Positive
Budget Actual Amounts (Negative)
REVENUES:
Interest and rental $6,371 $6,371
Total Revenues 6,371 6,371
EXPENDITURES
Current:
Public works
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 6,371 6,371
OTHER FINANCING SOURCES (USES)
Transfers (out) ($1,525,129) 1,525,129
Total other financing sources (uses) (1,525,129) 1,525,129
NET CHANGE IN FUND BALANCE ($1,525,129)6,371 $1,531,500
Fund balance - July 1 3,245
Fund balance - June 30 $9,616
112
Variance with
Final Budget
Final Positive
Budget Actual Amounts (Negative)
REVENUES:
Interest and rental $683,549 $683,549
Total Revenues 683,549 683,549
EXPENDITURES
Current:
Public Works $1,000,000 1,000,000
Total Expenditures 1,000,000 1,000,000
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,000,000) (316,451) 683,549
OTHER FINANCING SOURCES (USES)
Transfers out (10,186,832) (3,161,063) 7,025,769
Total other financing sources (uses) (10,186,832) (3,161,063) 7,025,769
NET CHANGE IN FUND BALANCE ($11,186,832) (3,477,514) $7,709,318
Fund balance - July 1 21,585,486
Adjustment to budgetary basis:
Encumbrance adjustments 1,000,000
Fund balance - June 30 $19,107,972
CITY OF SOUTH SAN FRANCISCO
CAPITAL INFRASTRUCTURE RESERVE FUND
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2019
113
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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.
Federal Aviation Grant – This fund accounts for federal monies received for insulating
structures against airport noise.
Community Development Block Grant – Accounts for Federal monies received to be expended
for development of jobs and suitable housing for low-income residents.
Maintenance District – 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.
115
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Capital projects funds are used to account for resources used for the acquisition and construction of
capital facilities or major capital equipment, except for capital improvements financed by proprietary
funds. Capital projects funds used at the City of South San Francisco include:
Non-obligated Capital Projects – Accounts for the construction of assets financed by non-
obligated debt.
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.
116
This Page Left Intentionally Blank
Federal Community
Developer Aviation Development Maintenance
Gas Tax Contributions Grant Block Grant Districts
ASSETS
Cash and investments $395,864 $6,940,255 $751,784 $3,641,552
Receivables:
Accounts 123,420 $133,641
Accrued interest 2,838 50,177 4,771
Loans 789,824
Restricted cash and investments 152,222
Land held for resale
Total Assets $522,122 $6,990,432 $756,555 $1,075,687 $3,641,552
LIABILITIES
Liabilities:
Accounts payable $40,094 $45,100 $30,793
Other payable 480,000
Deposits 1,907,677
Unearned revenue $756,555
Total Liabilities 1,947,771 756,555 525,100 30,793
Fund Balances:
Restricted $522,122 5,042,661 550,587 3,610,759
Total Fund Balances 522,122 5,042,661 550,587 3,610,759
Total Liabilities and Fund Balances $522,122 $6,990,432 $756,555 $1,075,687 $3,641,552
SPECIAL REVENUE FUNDS
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2019
118
SPECIAL REVENUE FUNDS
Solid Supplemental Affordable PEG Transit Station
Transportation Waste Law Enforce- City Housing Equipment and Enhancement
Sales Tax Reduction ment Services Programs Trust Access In-Lieu Fee
$3,387,594 $523,393 $903 $4,624,355 $6,545,739 $1,220,782 $1,795,803
33,501 41,135
21,067 196 25,639 16,092 7,179 7,758
18,226
1,900,000
$3,408,661 $556,894 $1,099 $4,649,994 $8,480,057 $1,269,096 $1,803,561
$4,860 $102,860
4,860 102,860
$3,408,661 552,034 $1,099 4,547,134 $8,480,057 $1,269,096 $1,803,561
3,408,661 552,034 1,099 4,547,134 8,480,057 1,269,096 1,803,561
$3,408,661 $556,894 $1,099 $4,649,994 $8,480,057 $1,269,096 $1,803,561
(Continued)
119
SPECIAL
REVENUE FUND
Road Non-obligated Public Oyster Point Sewer
Maintenance Capital Safety Improvement Capacity
and Rehabilitation Projects Impact Fee Impact Fees Charges
ASSETS
Cash and investments $1,207,323 $41,857 $1,294,898 $63,714 $12,255,411
Receivables:
Accounts 115,328
Accrued interest 4,843 6,332 8,542 68,146
Loans
Restricted cash and investments
Land held for resale
Total Assets $1,327,494 $41,857 $1,301,230 $72,256 $12,323,557
LIABILITIES
Liabilities:
Accounts payable
Other payable
Deposits
Unearned revenue
Total Liabilities
Fund Balances:
Restricted $1,327,494 $41,857 $1,301,230 $72,256 $12,323,557
Total Fund Balances 1,327,494 41,857 1,301,230 72,256 12,323,557
Total Liabilities and Fund Balances $1,327,494 $41,857 $1,301,230 $72,256 $12,323,557
CAPITAL PROJECTS FUNDS
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2019
120
Total
Oyster Point Park Land Park Bicycle and Nonmajor
Development Acquisition Construction Pedestrian Governmental
Impact Fees Fee Fee Impact Fee Funds
$31,140 $362,557 $2,112,667 $51,136 $47,248,727
45,030 492,055
3,377 3,848 137 230,942
808,050
152,222
1,900,000
$76,170 $365,934 $2,116,515 $51,273 $50,831,996
$223,707
480,000
1,907,677
756,555
3,367,939
$76,170 $365,934 $2,116,515 $51,273 47,464,057
76,170 365,934 2,116,515 51,273 47,464,057
$76,170 $365,934 $2,116,515 $51,273 $50,831,996
CAPITAL PROJECTS FUNDS
121
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2019
SPECIAL REVENUE FUNDS
Federal Community
Developer Aviation Development Maintenance
Gas Tax Contributions Grants Block Grant Districts
REVENUES
Property taxes $1,937,960
Other taxes
Intergovernmental $1,805,564 $447,793
Interest and rentals 15,032 $267,807 $25,264 21,157
Charges for services 2,874,507
Other 11,130
Total Revenues 1,820,596 3,142,314 25,264 480,080 1,937,960
EXPENDITURES
Current:
Economic and community development 241,593 25,264 198,845
Public works 1,469,305
Non-departmental
Fire
Police
Other
Debt service:
Principal repayments
Total Expenditures 241,593 25,264 198,845 1,469,305
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,820,596 2,900,721 281,235 468,655
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (1,825,696) (4,187,123)
Total Other Financing Sources (Uses)(1,825,696) (4,187,123)
Net Change in Fund Balances (5,100) (1,286,402)281,235 468,655
Fund balance - July 1 527,222 6,329,063 269,352 3,142,104
Fund balance - June 30 $522,122 $5,042,661 $550,587 $3,610,759
122
SPECIAL REVENUE FUNDS
Solid Supplemental Affordable PEG Transit Station
Transportation Waste Law Enforce- City Housing Equipment and Enhancement
Sales Tax Reduction ment Services Programs Trust Access In-Lieu Fee
$1,762,540 $150,768
111,632 1,075 $106,855 $87,758 $38,073 $41,514
$201,008 4,741,200 1,338,235
1,250,312 166,476
1,874,172 201,008 151,843 1,357,167 4,828,958 204,549 1,379,749
70,154
77,364
50,847
333,024
70,154 50,847 333,024 77,364
1,874,172 130,854 100,996 1,024,143 4,828,958 127,185 1,379,749
2,236,224
(1,431,441)(4,272) (100,000) (88,274)(235,718)
(1,431,441)(4,272) (100,000) 2,147,950 (235,718)
442,731 126,582 996 3,172,093 4,828,958 127,185 1,144,031
2,965,930 425,452 103 1,375,041 3,651,099 1,141,911 659,530
$3,408,661 $552,034 $1,099 $4,547,134 $8,480,057 $1,269,096 $1,803,561
(Continued)
123
SPECIAL
REVENUE FUND
Road Non-obligated Public Oyster Point Sewer
Maintenance Capital Safety Improvement Capacity
and Rehabilitation Projects Impact Fee Impact Fees Charges
REVENUES
Property taxes
Other taxes
Intergovernmental $1,207,750 $200,152
Interest and rentals 24,436 $33,639 $46,385 161,534
Charges for services 3,460,060 2,825,571
Other 445,461
Total Revenues 1,232,186 479,100 3,506,445 3,187,257
EXPENDITURES
Current:
Economic and community development
Public works 552
Non-departmental
Fire 4,391
Police
Other
Debt service:
Principal repayments 3,464,000
Total Expenditures 4,391 3,464,000 552
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,232,186 474,709 42,445 3,186,705
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (175,641)(9,517)(369,745)
Total Other Financing Sources (Uses)(175,641)(9,517)(369,745)
Net Change in Fund Balances 1,056,545 465,192 42,445 2,816,960
Fund balance - July 1 270,949 $41,857 836,038 29,811 9,506,597
Fund balance - June 30 $1,327,494 $41,857 $1,301,230 $72,256 $12,323,557
CAPITAL PROJECTS FUNDS
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2019
124
Total
Oyster Point Park Land Park Bicycle and Nonmajor
Development Acquisition Construction Pedestrian Governmental
Impact Fees Fee Fee Impact Fee Funds
$1,937,960
1,913,308
3,661,259
$599 $16,621 $20,813 $746 1,020,940
781,238 294,649 2,092,001 49,601 18,658,070
4,940,441 6,813,820
5,722,278 311,270 2,112,814 50,347 34,005,357
535,856
5,437,619 6,907,476
77,364
4,391
50,847
333,024
3,464,000
5,437,619 11,372,958
284,659 311,270 2,112,814 50,347 22,632,399
2,236,224
(13,918)(8,441,345)
(13,918)(6,205,121)
284,659 311,270 2,098,896 50,347 16,427,278
(208,489)54,664 17,619 926 31,036,779
$76,170 $365,934 $2,116,515 $51,273 $47,464,057
CAPITAL PROJECTS FUNDS
125
GAS TAX DEVELOPER CONTRIBUTIONS
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Other taxes
Intergovernmental $1,700,688 $1,805,564 $104,876
Interest and rentals 15,000 15,032 32 $267,807 $267,807
Charges for services 2,874,507 2,874,507
Other
Total Revenues 1,715,688 1,820,596 104,908 3,142,314 3,142,314
EXPENDITURES
Current:
City Council
Economic and community development $97,670 345,017 (247,347)
Public works
Non-departmental
Fire
Police
Other
Debt service:
Principal repayments
Total Expenditures 97,670 345,017 (247,347)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,715,688 1,820,596 104,908 (97,670) 2,797,297 2,894,967
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (2,455,104) (1,825,696) 629,408 (5,836,743) (4,187,123) 1,649,620
Total Other Financing Sources (Uses) (2,455,104) (1,825,696) 629,408 (5,836,743) (4,187,123) 1,649,620
NET CHANGE IN FUND BALANCES ($739,416) (5,100) $734,316 ($5,934,413) (1,389,826) $4,544,587
Adjustment to budgetary basis:
Encumbrance adjustments 103,424
Fund balance - July 1 527,222 6,329,063
Fund balance - June 30 $522,122 $5,042,661
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2019
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
126
MAINTENANCE DISTRICTS
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$1,730,539 $1,937,960 $207,421
$415,000 $447,793 $32,793
$4,000 $25,264 $21,264 80,000 21,157 (58,843)
11,130 11,130
4,000 25,264 21,264 495,000 480,080 (14,920) 1,730,539 1,937,960 207,421
25,264 (25,264) 892,029 395,638 496,391
1,623,777 1,469,305 154,472
25,264 (25,264) 892,029 395,638 496,391 1,623,777 1,469,305 154,472
4,000 (4,000) (397,029) 84,442 481,471 106,762 468,655 361,893
(95,330)95,330
(95,330)95,330
$4,000 ($4,000) ($492,359) 84,442 $576,801 $106,762 468,655 $361,893
196,793
269,352 3,142,104
$550,587 $3,610,759
(Continued)
GRANT BLOCK GRANT
COMMUNITY DEVELOPMENTFEDERAL AVIATION
127
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Other taxes $1,468,995 $1,762,540 $293,545
Intergovernmental
Interest and rentals 25,000 111,632 86,632
Charges for services $180,000 $201,008 $21,008
Other
Total Revenues 1,493,995 1,874,172 380,177 180,000 201,008 21,008
EXPENDITURES
Current:
City Council
Economic and community development 202,024 194,040 7,984
Public works
Non-departmental
Fire
Police
Other
Debt service:
Principal repayments
Total Expenditures 202,024 194,040 7,984
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,493,995 1,874,172 380,177 (22,024) 6,968 28,992
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (4,545,940) (1,431,441) 3,114,499 (146,537) (4,272) 142,265
Total Other Financing Sources (Uses) (4,545,940) (1,431,441) 3,114,499 (146,537) (4,272) 142,265
NET CHANGE IN FUND BALANCES ($3,051,945) 442,731 $3,494,676 ($168,561) 2,696 $171,257
Adjustment to budgetary basis:
Encumbrance adjustments 123,886
Fund balance - July 1 2,965,930 425,452
Fund balance - June 30 $3,408,661 $552,034
TRANSPORTATION SALES TAX SOLID WASTE REDUCTION
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2019
128
AFFORDABLE HOUSING TRUST
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$100,000 $150,768 $50,768
1,075 1,075 $106,855 $106,855 $87,758 $87,758
4,741,200 4,741,200
$1,000,000 1,250,312 250,312
100,000 151,843 51,843 1,000,000 1,357,167 357,167 4,828,958 4,828,958
3,000
50,847 (50,847)
333,024 (333,024)
50,847 (50,847) 3,000 333,024
100,000 100,996 996 997,000 1,024,143 27,143 4,828,958 4,828,958
2,236,224 2,236,224
(100,000) (100,000)(967,596) (88,274) 879,322
(100,000) (100,000)(967,596) 2,147,950 3,115,546
996 $996 $29,404 3,172,093 $3,142,689 4,828,958 $4,828,958
103 1,375,041 3,651,099
$1,099 $4,547,134 $8,480,057
(Continued)
ENFORCEMENT SERVICES
SUPPLEMENTAL LAW
CITY PROGRAMS
129
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2019
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Other taxes
Intergovernmental
Interest and rentals $5,000 $38,073 $33,073 $41,514 $41,514
Charges for services 1,338,235 1,338,235
Other 125,000 166,476 41,476
Total Revenues 130,000 204,549 74,549 1,379,749 1,379,749
EXPENDITURES
Current:
City Council
Economic and community development
Public works
Non-departmental 68,891 77,364 (8,473)
Fire
Police
Other
Debt service:
Principal repayments
Total Expenditures 68,891 77,364 (8,473)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 61,109 127,185 66,076 1,379,749 1,379,749
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out ($743,166) (235,718) 507,448
Total Other Financing Sources (Uses)(743,166) (235,718) 507,448
NET CHANGE IN FUND BALANCES $61,109 127,185 $66,076 ($743,166) 1,144,031 $1,887,197
Adjustment to budgetary basis:
Encumbrance adjustments
Fund balance - July 1 1,141,911 659,530
Fund balance - June 30 $1,269,096 $1,803,561
PEG
EQUIPMENT AND ACCESS
TRANSIT ENHANCEMENT
IN-LIEU FEE
130
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$1,109,449 $1,207,750 $98,301
24,436 24,436 $33,639 $33,639
445,461 445,461
1,109,449 1,232,186 122,737 479,100 479,100
$4,391 4,391
4,391 4,391
1,109,449 1,232,186 122,737 (4,391) 474,709 479,100
($1,408,870) (175,641) 1,233,229 (328,601) (9,517) 319,084
(1,408,870) (175,641) 1,233,229 (328,601) (9,517) 319,084
($299,421) 1,056,545 $1,355,966 ($332,992) 465,192 $798,184
270,949 $41,857 836,038
$1,327,494 $41,857 $1,301,230
(Continued)
NONOBLIGATED
CAPITAL PROJECTS
PUBLIC SAFETY
IMPACT FEE
ROAD MAINTENANCE
AND REHABILITATION
131
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Other taxes
Intergovernmental $200,152 $200,152
Interest and rentals $46,385 $46,385 161,534 161,534
Charges for services 3,460,060 3,460,060 $200,000 2,825,571 2,625,571
Other
Total Revenues 3,506,445 3,506,445 200,000 3,187,257 2,987,257
EXPENDITURES
Current:
City Council
Economic and community development
Public works $52,561 52,561 2,652 552 2,100
Non-departmental
Fire
Police
Other
Debt service:
Principal repayments 3,464,000 (3,464,000)
Total Expenditures 52,561 3,464,000 (3,411,439) 2,652 552 2,100
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (52,561) 42,445 95,006 197,348 3,186,705 2,989,357
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (6,132,988) (369,745) 5,763,243
Total Other Financing Sources (Uses)(6,132,988) (369,745) 5,763,243
NET CHANGE IN FUND BALANCES ($52,561) 42,445 $95,006 ($5,935,640) 2,816,960 $8,752,600
Adjustment to budgetary basis:
Encumbrance adjustments
Fund balance - July 1 29,811 9,506,597
Fund balance - June 30 $72,256 $12,323,557
FOR THE YEAR ENDED JUNE 30, 2018
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
SEWER
CAPACITY CHARGES
OYSTER POINT
IMPROVEMENT IMPACT FEES
132
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$599 $599 $16,621 $16,621 $20,813 $20,813
781,238 781,238 294,649 294,649 2,092,001 2,092,001
4,940,441 4,940,441
5,722,278 5,722,278 311,270 311,270 2,112,814 2,112,814
5,678,621 (5,678,621)
5,678,621 (5,678,621)
43,657 43,657 311,270 311,270 2,112,814 2,112,814
($188,796) (13,918) 174,878
(188,796) (13,918) 174,878
43,657 $43,657 311,270 $311,270 ($188,796) 2,098,896 $2,287,692
241,002
(208,489)54,664 17,619
$76,170 $365,934 $2,116,515
(Continued)
PARK LAND
ACQUISITION FEE
PARK
CONSTRUCTION FEE
OYSTER POINT
DEVELOPMENT IMPACT FEES
133
Variance
Final Positive
Budget Actual (Negative)
REVENUES
Property taxes
Other taxes
Intergovernmental
Interest and rentals $746 $746
Charges for services 49,601 49,601
Other
Total Revenues 50,347 50,347
EXPENDITURES
Current:
City Council
Economic and community development
Public works
Non-departmental
Fire
Police
Other
Debt service:
Principal repayments
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 50,347 50,347
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES 50,347 $50,347
Adjustment to budgetary basis:
Encumbrance adjustments
Fund balance - July 1 926
Fund balance - June 30 $51,273
FOR THE YEAR ENDED JUNE 30, 2018
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
BICYCLE AND
PEDESTRIAN IMPACT FEE
134
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.
135
CITY OF SOUTH SAN FRANCISCO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2019
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
ASSETS
Current assets:
Cash and investments $1,841,373 $15,406,142 $10,731,265 $4,968,160 $32,946,940
Receivables:
Accounts 35,517 35,517
Accrued interest 11,366 79,099 69,476 26,895 186,836
Deposit 83,091 46,010 129,101
Prepaid items 830,740 830,740
Total current assets 1,888,256 15,568,332 11,677,491 4,995,055 34,129,134
Noncurrent assets:
Capital assets:
Depreciable, net of accumulated depreciation 4,911,558 4,911,558
Total Assets 1,888,256 15,568,332 11,677,491 9,906,613 39,040,692
LIABILITIES
Current liabilities:
Accounts payable 107,492 59,532 65,620 232,644
Other payable 126,688 150,287 276,975
Current portion of accrued insurance loss 712,000 712,000
Current portion of compensated absences 88,689 632,415 721,104
Current portion of long-term debt 263,838 263,838
Total current liabilities 322,869 771,532 848,322 263,838 2,206,561
Noncurrent liabilities:
Accrued insurance loss 13,739,253 13,739,253
Compensated absences obligation 87,545 802,280 889,825
Noncurrent portion of long-term debt 489,781 489,781
Total noncurrent liabilities 87,545 13,739,253 802,280 489,781 15,118,859
Total Liabilities 410,414 14,510,785 1,650,602 753,619 17,325,420
NET POSITION:
Net investment in capital assets 4,157,939 4,157,939
Unrestricted 1,477,842 1,057,547 10,026,889 4,995,055 17,557,333
Total Net Position $1,477,842 $1,057,547 $10,026,889 $9,152,994 $21,715,272
136
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
OPERATING REVENUES
Charges for services $4,417,021 $6,002,793 $13,781,114 $1,634,961 $25,835,889
Total Operating Revenues 4,417,021 6,002,793 13,781,114 1,634,961 25,835,889
OPERATING EXPENSES
Personnel expenses 1,968,994 925,210 13,715,328 16,609,532
Professional services 630,525 277,712 908,237
Program supplies 1,220,322 5,500 1,400 19,193 1,246,415
Insurance 12,988 1,589,831 1,602,819
Self-insurance and claims 3,323,889 3,323,889
Repair and maintenance 437,100 137,707 574,807
Utilities 148,225 148,225
Depreciation 290 829,764 830,054
Other 10,424 402,363 412,787
Total Operating Expenses 4,428,868 6,122,142 14,119,091 986,664 25,656,765
Operating Income (Loss)(11,847) (119,349) (337,977)648,297 179,124
NONOPERATING
REVENUES (EXPENSES)
Interest income 60,486 419,878 366,555 142,668 989,587
Interest expense (30,743) (30,743)
Gain from disposal of capital assets 41,611 41,611
Other 72,740 72,740
Total Nonoperating
Revenues (Expenses)60,486 492,618 366,555 153,536 1,073,195
Net income (loss) before transfers 48,639 373,269 28,578 801,833 1,252,319
TRANSFERS
Transfers in 250,000 250,000
Change in Net Position 48,639 373,269 278,578 801,833 1,502,319
Net Position - (deficits) July 1 1,429,203 684,278 9,748,311 8,351,161 20,212,953
Net Position - (deficits) June 30 $1,477,842 $1,057,547 $10,026,889 $9,152,994 $21,715,272
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2019
CITY OF SOUTH SAN FRANCISCO
137
CITY OF SOUTH SAN FRANCISCO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2019
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from interfund service provided $4,381,504 $6,149,942 $12,950,374 $1,634,961 $25,116,781
Cash payments to suppliers for goods and services (2,459,584) (1,885,776) (403,763) (183,185) (4,932,308)
Cash payments to employees for services (1,910,654) (975,514) (13,398,261)(16,284,429)
Cash payments for judgments and claims (1,665,992)(1,665,992)
Net Cash Provided by Operating Activities 11,266 1,622,660 (851,650) 1,451,776 2,234,052
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
Principal paid on capital lease (381,482) (381,482)
Interest payments (30,743) (30,743)
Acquisition of capital assets, net (335,751) (335,751)
Proceeds from the sale of capital assets 79,653 79,653
Net Cash Used in Capital and Related Financing Activities (668,323) (668,323)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 83,939 593,529 511,974 191,509 1,380,951
Changes in market values of investments (26,942) (187,497) (164,685) (63,752) (442,876)
Net Cash Provided by Investing Activities 56,997 406,032 347,289 127,757 938,075
Net Increase (Decrease) in cash and cash equivalents 68,263 2,028,692 (254,361) 911,210 2,753,804
Cash and cash equivalents, beginning 1,773,110 13,377,450 10,985,626 4,056,950 30,193,136
Cash and cash equivalents, ending $1,841,373 $15,406,142 $10,731,265 $4,968,160 $32,946,940
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)($11,847) ($119,349) ($337,977) $648,297 $179,124
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation 290 829,764 830,054
Other non-operating revenue (expenses)72,740 72,740
Net change in assets and liabilities:
Accounts and lease receivables (35,517)(35,517)
Deposit 74,409 74,409
Prepaid items (830,740)(830,740)
Accounts payable 83,750 (50,304) 65,214 98,660
Other payable (12,733) 150,287 (26,285) 111,269
Accrued insurance losses 1,657,897 1,657,897
Compensated absence obligations (25,410)101,566 76,156
Net Cash Provided by (Used in) Operating Activities $11,266 $1,622,660 ($851,650) $1,451,776 $2,234,052
138
AGENCY FUND
An agency fund is used to account for monies where the City is acting as an agent for another government
entity. The agency fund used at the City of South San Francisco consisted of:
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.
139
Balance Balance
June 30, 2018 Additions Deductions June 30, 2019
ASSETS
Cash and investments $82,265 $105,115 $82,265 $105,115
Interest receivable 400 579 400 579
Total Assets $82,665 $105,694 $82,665 $105,694
LIABILITIES
Accounts payable $2,602 $1,706 $2,602 $1,706
Other accrued liabilities 80,063 103,988 80,063 103,988
Total Liabilities $82,665 $105,694 $82,665 $105,694
CITY OF SOUTH SAN FRANCISCO
AGENCY FUND
STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FOR THE YEAR ENDED JUNE 30, 2019
SSF Employee Deferred Comp Trust Oversight
140
STATISTICAL SECTION
This part of the City’s Comprehensive Annual Financial Report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City’s overall financial health. In contrast to the financial
section, the statistical section information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial
performance and well being have changed over time:
1.Net Position by Component
2.Changes in Net Position
3.Fund Balances of Governmental Funds
4.Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue
source, the property tax:
1.Assessed Value and Estimated Market Value of Taxable Property
2.All Overlapping Property Tax Rates
3.Principal Property Tax Payers
4.Twenty Largest Taxable Property Owners for Merged RDA Project Area
5.Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels
of outstanding debt and the City’s ability to issue additional debt in the future:
1.Ratio of Outstanding Debt by Type
2.Computation of Direct and Overlapping Debt
3.Computation of Legal Bonded Debt Margin
4.Continuing Disclosure Requirements:
a.Revenue Bond Coverage
b.Sewer Debt Service Coverage
c.Bonded Debt Pledge Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City’s financial activities take place:
1.Demographic and Economic Statistics
2.Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information
in the City’s financial report relates to the services the City provides and the activities it performs:
1.Full-Time City Government Employees by Function
2.Operating Indicators by Function/Program
3.Capital Asset Statistics by Function/Program
141
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 Comprehensive Annual
Financial Reports for the relevant year.
142
2010 2011 2012 2013 2014
Governmental activities
Net investment in capital assets $209,507,012 $214,246,561 $214,246,561 $216,508,668 $230,440,390
Restricted 78,625,094 163,669,353 163,669,353 30,514,986 42,367,623
Unrestricted 65,537,953 (19,267,010) (19,267,010) 8,021,490 (12,317,511)
Total governmental activities net position $353,670,059 $358,648,904 $358,648,904 $255,045,144 $260,490,502
Business-type activities
Net investment in capital assets $58,522,676 $66,113,596 $66,113,596 $72,217,660 $78,045,318
Restricted
Unrestricted 792,921 9,292,189 9,292,189 13,353,988 15,367,085
Total business-type activities net position $59,315,597 $75,405,785 $75,405,785 $85,571,648 $93,412,403
Primary government
Net investment in capital assets $268,029,688 $280,360,157 $280,360,157 $288,726,328 $308,485,708
Restricted 78,625,094 163,669,353 163,669,353 30,514,986 42,367,623
Unrestricted 66,330,874 (9,974,821) (9,974,821) 21,375,478 3,049,574
Total primary government net position $412,985,656 $434,054,689 $434,054,689 $340,616,792 $353,902,905
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
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 $308,485,708 $315,072,152 $340,512,258 $344,667,951 $371,812,644
Restricted 42,367,623 52,406,602 54,478,093 96,316,988 117,752,590
Unrestricted 3,049,574 (113,876,392) (79,608,509) (126,606,186) (113,983,454)
Total primary government net position $353,902,905 $253,602,362 $315,381,842 $314,378,753 $375,581,780
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
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Millions
Unrestricted
Restricted
Invested in Capital Assets Net of
Related Debt
143
CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2010 2011 2012 2013
Expenses
Governmental Activities:
General Government $6,538,052 $7,711,156 $7,801,328 $8,360,945
Fire Department 17,868,050 20,032,141 20,749,323 22,746,291
Police Department 20,352,570 22,429,782 23,330,208 24,756,958
Public Works 15,873,783 17,127,086 21,269,281 15,773,710
Park, Recreation and Maintenance Services 10,411,821 10,866,568 11,641,892 12,570,236
Library 4,616,658 4,664,490 4,754,760 4,615,967
Economic and Community Development 23,147,877 15,018,495 8,702,949 16,126,427
Interest on Long -Term Debt 5,035,780 4,249,454 3,328,244 52,139
Total Governmental Activities Expenses 103,844,591 102,099,172 101,577,985 105,002,673
Business-Type Activities:
Sewer Rental 18,944,267 19,277,959 19,446,739 20,870,522
Parking District 338,995 571,261 769,117 792,609
Storm Water 722,232 710,903 1,010,093 1,655,950
Total Business-Type Activities Expenses 20,005,494 20,560,123 21,225,949 23,319,081
Total Primary Government Expenses $123,850,085 $122,659,295 $122,803,934 $128,321,754
Program Revenues
Governmental Activities:
Charges for Services:
General Government $2,539,316 $2,688,990 $2,032,292 $1,951,016
Fire Department 2,851,984 3,221,837 3,697,665 2,987,956
Police Department 1,479,104 1,815,405 2,599,149 2,640,146
Public Works 4,412,581 3,805,824 3,607,224 2,926,227
Park, Recreation and Maintenance Services 3,032,399 3,004,435 3,178,276 3,433,567
Library 187,380 168,505 143,971 125,416
Economic and Community Development 4,652,031 4,944,328 4,968,383 3,457,020
Operating Grants and Contributions 5,786,227 5,549,711 5,650,685 5,455,010
Capital Grants and Contributions 217,877 2,728,543 1,471,416 4,036,786
Total Government Activities Program Revenues 25,158,899 27,927,578 27,349,061 27,013,144
Business-Type Activities:
Charges for Services:
Sewer Rental 17,486,418 18,087,695 19,310,286 19,338,107
Parking District 616,578 722,807 760,248 732,932
Storm Water 422,467 406,589 409,498 427,291
Operating Grants and Contributions 5,679,902 5,509,874 5,936,527 6,137,401
Capital Grants and Contributions 24,720 31,670
Total Business-Type Activities Program Revenue 24,230,085 24,758,635 26,416,559 26,635,731
Total Primary Government Program Revenues $49,388,984 $52,686,213 $53,765,620 $53,648,875
Net (Expense)/Revenue
Governmental Activities ($78,685,692) ($74,171,594) ($74,228,924) ($77,989,529)
Business-Type Activities 4,224,591 4,198,512 5,190,610 3,316,650
Total Primary Government Net Expense ($74,461,101) ($69,973,082) ($69,038,314) ($74,672,879)
144
2014 2015 2016 2017 2018 2019
$7,155,035 $8,421,857 $9,044,518 $10,253,403 $12,506,188 $12,139,671
21,200,903 22,005,883 22,488,964 25,750,126 30,352,387 31,986,738
24,376,379 23,910,436 23,158,168 25,838,242 30,732,288 32,994,122
14,980,417 14,493,039 11,916,572 12,396,998 18,379,278 20,425,958
12,658,309 12,383,880 12,901,657 15,217,677 17,162,377 17,962,298
4,310,550 4,300,885 4,442,577 5,184,282 5,910,406 6,241,093
5,525,541 5,928,316 7,603,275 8,927,162 10,094,626 10,557,116
90,207,134 91,444,296 91,555,731 103,567,890 125,137,550 132,306,996
19,301,103 23,969,579 18,273,580 22,661,768 24,397,607 25,719,049
943,859 503,014 894,769 940,181 1,202,319 896,994
1,078,868 1,234,616 1,289,465 1,333,409 1,026,948 1,188,182
21,323,830 25,707,209 20,457,814 24,935,358 26,626,874 27,804,225
$111,530,964 $117,151,505 $112,013,545 $128,503,248 $151,764,424 $160,111,221
$5,785,598 $3,946,302 $4,194,563 $2,225,049 $1,966,755 $7,930,983
3,304,952 3,520,275 3,450,524 4,242,940 6,327,921 6,052,804
2,805,640 2,370,736 2,076,837 2,146,909 2,230,824 2,351,491
4,734,813 5,071,729 10,361,525 10,869,608 24,727,897 27,811,701
3,571,947 3,708,272 3,744,137 3,756,369 4,489,665 4,293,474
138,827 120,850 164,271 96,987 102,124 105,466
5,800,849 5,337,177 6,131,463 3,911,597 13,052,441 14,214,991
5,601,916 5,753,845 5,581,492 4,533,539 5,827,149 12,091,079
1,538,225 632,735 1,147,337 577,995 2,515,868 1,629,730
33,282,767 30,461,921 36,852,149 32,360,993 61,240,644 76,481,719
19,155,467 19,798,033 19,569,341 19,897,769 22,417,156 24,078,076
785,586 819,051 843,199 916,687 1,084,472 1,180,538
409,458 407,640 412,105 418,840 656,315 540,679
7,619,601 6,242,687 5,802,788 5,763,645 5,834,455 6,452,950
27,970,112 27,267,411 26,627,433 26,996,941 29,992,398 32,252,243
$61,252,879 $57,729,332 $63,479,582 $59,357,934 $91,233,042 $108,733,962
($56,924,367) ($60,982,375) ($54,703,582) ($71,206,897) ($63,896,906) ($55,825,277)
6,646,282 1,560,202 6,169,619 2,061,583 3,365,524 4,448,018
($50,278,085) ($59,422,173) ($48,533,963) ($69,145,314) ($60,531,382) ($51,377,259)
145
CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2010 2011 2012 2013
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property Taxes $55,014,367 $54,323,420 $37,379,175 $26,420,861
Sales Taxes 9,146,620 11,199,175 11,691,564 12,931,805
Transient Occupancy Tax 5,820,675 7,191,938 8,619,170 9,659,281
Franchise fees
Other Taxes 6,768,753 7,071,446 7,089,687 7,588,471
Motor Vehicle In-Lieu 192,035 211,503 168,214 33,767
Property taxes in lieu of vehicle license fees 5,224,547 5,086,144 5,153,384 4,955,873
Interest Earnings 5,127,255 3,944,785 2,384,207 809,721
Gain from sale of property
Other 1,496,744 1,891,421 9,300,137 1,965,744
Extraordinary Item (107,717,428)
Transfers (1,459,296) (11,769,393) (785,309) (906,857)
Special items 11,873,226
Total Government Activities 87,331,700 79,150,439 (26,717,199) 75,331,892
Business-Type Activities:
Interest Earnings 175,188 122,283 149,242 95,177
Transfers 1,459,296 11,769,393 785,309 906,857
Total Business-Type Activities 1,634,484 11,891,676 934,551 1,002,034
Total Primary Government $88,966,184 $91,042,115 ($25,782,648) $76,333,926
Change in Net Position
Governmental Activities $8,646,008 $4,978,845 ($100,946,123) ($2,657,637)
Business-Type Activities 5,859,075 16,090,188 6,125,161 4,318,684
Total Primary Government $14,505,083 $21,069,033 ($94,820,962) $1,661,047
146
2014 2015 2016 2017 2018 2019
$22,890,828 $24,650,648 $24,650,648 $29,023,618 $29,551,445 $33,446,750
12,725,141 13,932,125 13,932,125 24,087,776 28,340,393 31,843,568
11,174,017 12,947,473 12,947,473 13,631,507 13,978,533 17,091,222
4,090,073 4,403,493 4,469,808
8,141,010 8,650,056 8,650,056 5,708,187 5,871,096 4,995,404
40,074 26,995 26,995 28,933 34,452 32,200
5,319,154 5,551,651 5,551,651 6,133,230 6,438,199 7,150,867
1,108,177 629,036 629,036 622,518 1,097,916 4,808,664
840,298
2,012,444 4,577,239 4,577,239 2,365,820 5,180,288 7,799,392
(1,041,120) (1,429,308) (1,429,308) (1,105,038) (1,997,377) (2,101,222)
45,205,422 (7,154,626) (531,591)
62,369,725 69,535,915 69,535,915 129,792,046 85,743,812 109,845,360
153,353 126,874 126,874 27,710 37,072 633,704
1,041,120 1,429,308 1,429,308 1,105,038 1,997,377 2,101,222
1,194,473 1,556,182 1,556,182 1,132,748 2,034,449 2,734,926
$63,564,198 $71,092,097 $71,092,097 $130,924,794 $87,778,261 $112,580,286
$5,445,358 $8,553,540 $8,553,540 $58,585,149 $21,846,906 $54,020,083
7,840,755 3,116,384 3,116,384 3,194,331 5,399,973 7,182,944
$13,286,113 $11,669,924 $11,669,924 $61,779,480 $27,246,879 $61,203,027
147
CITY OF SOUTH SAN FRANCISCO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(b)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General Fund
Reserved $889,186
Unreserved 14,841,958
Nonspendable $67,129 $90,167 $805,677 $14,163 $1,134 $33,580 $474 $106 $372
Restricted 20,582,335 19,201,948
Committed 401,797 208,054 1,406,430 3,879,451 2,536,790 3,654,283 11,780,724 16,725,897 22,619,868
Assigned 771,849 840,365 566,104 743,746 1,458,029 1,578,153 5,244,279 4,334,322 11,881,363
Unassigned 15,049,168 17,347,445 23,498,194 15,891,899 17,285,422 17,751,169 39,278,746 19,644,232 31,239,632
Total General Fund $15,731,144 $16,289,943 $18,486,031 $26,276,405 $20,529,259 $21,281,375 $23,017,185 $56,304,223 $61,286,892 (a) $84,943,183
All Other Governmental Funds
Reserved $64,163,373
Unreserved, reported in:
Special revenue funds 11,079,390
Debt service funds 3,198,600
Capital project funds 69,286,211
Nonspendable $39,205
Restricted $163,727,096 $43,364,540 $30,539,396 $42,392,238 $43,437,361 $52,938,897 $55,195,500 $78,603,366 103,135,202
Assigned 2,390,904 2,076,065 1,105,320 6,188,554 367,023
Unassigned (14,353,252) (1,388,956) (1,379,895) (521,604) (40,459)(88,331) (11,073) (2,971,345)
Total all other governmental funds $147,727,574 $151,764,748 $44,051,649 $30,264,821 $41,870,634 $49,585,456 $53,305,920 $55,107,169 $78,592,293 $100,203,062
#REF!#REF! 163,458,718 168,054,691 62,537,680 56,541,226 56,541,226 62,399,893 111,411,392 185,146,245
(a) The change in total fund balance for the General Fund and other governmental funds is explained in Management's Discussion and Analysis.
(b) In fiscal year 2011, the City implemented GASB 54, Fund Balance Reporting and Governmental Fund Type Definitions,
which requires the City to classify its fund balances based on spending constraints imposed on the use of resources.
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Thousands
Total Committed
Total Unassigned
Total Assigned
Total Restricted
Total Nonspendable
Total Unreserved
Total Reserved
148
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)
For The Fiscal Year Ended June 30,
2010 2011 2012 2013
Revenues
Property Taxes $54,718,916 $54,128,998 $38,174,655 $27,077,697
Other Taxes 19,771,310 23,412,992 28,866,546 31,894,811
Intergovernmental revenues 10,609,605 11,860,658 11,580,530 13,054,594
Interest and Rents 7,680,293 7,612,223 4,955,223 3,238,089
Licenses and permits 7,270,081 7,004,603 3,056,507 3,054,451
Charges for services 9,986,352 10,010,541 10,088,070 9,275,724
Fines and forfeitures 1,054,549 2,133,677 2,184,234 1,753,682
Other 2,542,492 2,261,247 3,000,563 1,837,675
Total Revenues 113,633,598 118,424,939 101,906,328 91,186,723
Expenditures
Current:
General government 5,916,364 6,407,094 6,485,219 6,658,532
Fire Department 16,790,834 18,140,954 18,812,861 20,877,917
Police Department 19,359,770 20,272,684 21,217,818 22,542,135
Public works 8,416,242 9,856,201 14,253,609 9,186,493
Recreation and Community Services 9,960,090 10,168,425 10,101,408 10,927,433
Library 4,342,662 4,231,762 4,272,701 4,112,570
Economic and Community Development 26,279,406 19,894,692 8,184,334 20,512,545
Other
Capital outlay 6,724,022 6,969,052 8,894,514
Debt service:
Principal repayment 1,887,434 1,842,000 1,752,000
Interest and fiscal charges 4,255,050 4,274,170 1,817,764 52,139
Total Expenditures 103,931,874 102,057,034 95,792,228 94,869,764
Excess (deficiency) of revenues over
(under) expenditures 9,701,724 16,367,905 6,114,100 (3,683,041)
Other Financing Sources (Uses)
Transfers in 18,047,351 88,175,882 108,413,018 4,467,530
Transfers (out) (22,175,268) (99,947,814) (109,646,766) (6,780,943)
Tax allocation bonds issued
Premium on bonds
Payments to refunded bond escrow
Other debt proceeds
Sale of capital assets
Total other financing sources (uses) (4,127,917) (11,771,932) (1,233,748) (2,313,413)
Net Change in fund balances
before extraordinary and special items 5,573,807 4,595,973 4,880,352 (5,996,454)
Extraordinary item (110,397,363)
Special item
Net change in fund balances $5,573,807 $4,595,973 ($105,517,011) ($5,996,454)
Debt service as a percentage of
noncapital expenditures 6.6% 6.7% 4.2% 0.1%
150
For The Fiscal Year Ended June 30,
2014 2015 2016 2017 2018 2019
$23,010,136 $24,650,648 $26,438,620 $35,156,848 $35,989,644 $40,597,617
33,931,446 38,275,478 $41,811,097 $49,608,385 54,597,272 60,721,378
10,757,440 10,453,071 12,360,354 4,019,771 8,433,240 13,179,593
3,632,693 3,531,966 4,207,453 3,100,692 3,524,727 7,231,303
4,366,271 4,795,158 6,896,897 7,823,403 14,674,809 15,381,416
16,864,409 13,387,712 15,386,358 14,485,367 31,961,419 41,055,659
1,528,319 1,221,413 791,756 899,118 423,604 926,729
2,249,728 4,660,668 2,439,579 2,906,625 6,454,460 7,994,701
96,340,442 100,976,114 110,332,114 118,000,209 156,059,175 187,088,396
5,970,429 7,167,969 8,469,924 9,399,930 10,403,449 10,166,977
20,163,759 21,247,989 24,175,340 25,632,366 26,059,072 27,576,879
23,309,568 23,611,743 25,458,986 25,998,097 26,970,854 28,533,292
16,791,894 15,923,071 14,846,346 12,143,965 23,859,399 38,459,963
11,552,502 11,826,407 13,234,028 14,897,157 15,468,370 16,530,603
3,987,928 4,247,650 4,681,188 5,157,355 5,379,836 5,628,693
5,972,966 5,917,508 7,907,655 8,943,111 9,338,793 9,085,390
480,290 395,749 274,183 256,298 333,024
453,381 352,674 656,000 23,000 2,382,000 3,464,000
88,202,427 90,775,301 99,825,216 102,469,164 120,118,071 139,778,821
8,138,015 10,200,813 10,506,898 15,531,045 35,941,104 47,309,575
21,870,234 17,983,227 8,143,075 14,327,130 26,486,651 22,230,499
(24,149,582)(19,717,102)(13,193,699)(16,368,499)(30,795,941)(24,581,721)
1,016,276 3,990,605 840,298
(2,279,348)(1,733,875)(5,050,624)(1,025,093)(318,685)(1,510,924)
5,858,667 8,466,938 5,456,274 14,505,952 35,622,419 45,798,651
20,582,335 (7,154,626)(531,591)
$5,858,667 $8,466,938 $5,456,274 $35,088,287 $28,467,793 $45,267,060
0.6%0.4%0.7%2.0%2.1%2.5%
151
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)
2010 $5,467,563,992 $1,429,401,205 $5,197,739,403 $498,656,817 $12,593,361,417 $1,424,610,941 $14,017,972,358 $14,017,972,358 0.36462%
2011 5,547,292,029 1,509,554,164 4,922,422,763 387,673,530 12,366,942,486 1,279,681,193 13,646,623,679 13,646,623,679 0.36933%
2012 5,579,044,758 1,581,852,456 4,967,158,758 403,895,119 12,531,951,091 1,295,085,027 13,827,036,118 13,827,036,118 0.37860%
2013 5,606,400,603 1,628,754,902 5,050,279,321 418,927,733 12,704,362,559 1,288,434,392 13,992,796,951 13,992,796,951 0.42174%
2014 5,900,441,192 1,713,575,060 4,273,694,531 1,204,288,116 13,091,998,899 1,212,353,871 14,304,352,770 14,304,352,770 0.13474%
2015 6,313,393,048 2,402,335,027 4,588,967,014 345,957,716 13,650,652,805 1,244,971,467 14,895,624,272 14,895,624,272 0.13804%
2016 6,716,642,000 2,000,204,271 5,189,813,366 376,874,603 14,283,534,240 1,197,263,526 15,480,797,766 15,480,797,766 0.13634%
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%
Source: HdL Coren & Cone, San Mateo County Assessor 2009/10-2018/19 Combined Tax Rolls.
(a)
(b)
CITY OF SOUTH SAN FRANCISCO
The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local
over-rides. These values are considered to be full market values.
California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing
entities within a tax rate area.
ASSESSED VALUE
OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
$0
$5,000
$10,000
$15,000
$20,000
$25,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Millions
Unsecured Secured
152
Fiscal Basic School Total Direct/Overlapping
Year Levy Districts Tax Rates
2010 1.000 0.1600
1.1600 (1,16)
2011 1.000 0.1707
1.1707 (1,17)
2012 1.000 0.1824
1.1824 (1,18)
2013 1.000 0.1959
1.1959 (1,19)
2014 1.000 0.2046
1.2046 (1,20)
2015 1.000 0.1822
1.1822 (1,21)
2016 1.000 0.1750
1.1750 (1,22)
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)
Notes:
Source: HDL, Coren & Cone (San mateo County Assessor 2009/10- 2018/19 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.
(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.
(16) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0377 percent, which includes South San Francisco Unified School
District bonds and San Mateo Jr. College bond. 3 have the rate of 1.0783 and one has a rate of 1.0748, which includes Jefferson
Union School bonds, and Brisbane ESD bonds, and one has a rate of 1.0804 which includes San Bruno Park Elementary.
(18) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0420 percent, which includes SSFUSD bonds and San Mateo Jr
College bond. 3 has a rate of 1.0893 percent and one at 1.0854 percent which includes Jefferson Union School bond, Brisbane ESD
bonds & San Mateo JR College bonds and one has a rate of 1.0909 percent which includes San Bruno Park Elementary.
(17) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0389 percent, which includes SSFUSD bonds and San Mateo Jr
College bond. 3 has a rate of 1.0870 percent and one at 1.0832 percent which includes Jefferson Union School bonds and Brisbane
ESD bonds. One has a rate of 1.0834 percent which includes San Bruno Park Elementary.
(19) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0521 percent, which includes SSFUSD bonds, San Mateo Jr College
bond, and San Mateo Comm College. 4 has a rate of 1.0921 percent which includes Brisbane ESD Bond, Jefferson High bonds, SM
Jr College bond and San Mateo Comm College. 1 has a rate of 1.0905 percent, which includes San Bruno Pk Elem bond, SM
Union High, SM Jr College bond and San Mateo Comm Coll bond.
(20) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0522 percent, which includes SSFUSD bonds, San Mateo Jr College
bond, and San Mateo Comm College. 4 has a rate of 1.1048 percent which includes Brisbane ESD Bond, Jefferson High bonds, SM
Jr College bond and San Mateo Comm College. 1 has a rate of 1.0864 percent, which includes San Bruno Pk Elem bond, SM
Union High, SM High, and San Mateo Comm College. 1 has a rate of 1.0864 percent, which includes San Bruno Pk Elem bond,
SM Union High, SM High, SM Jr College bond and San Mateo Comm Coll bond.
(21) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0703 percent, which includes SSFUSD bonds, San Mateo Jr College
bond, and San Mateo Comm College. 4 has a rate of 1.0991 percent which includes Brisbane ESD Bond, Jefferson High bonds, SM
Jr College bond and San Mateo Comm College. 1 has a rate of 1.0983 percent, which includes San Bruno Pk Elem bond, SM
Union High, SM High, SM Jr College bond and San Mateo Comm Coll bond.
(22) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0707 percent, which includes SSFUSD bonds, San Mateo Jr College
bond, and San Mateo Comm College. 3 has a rate of 1.1080 percent and 1 with 1.1068 percent rate which includes College bond
Brisbane ESD Bond, Jefferson High bonds, SM Jr and San Mateo Comm College. 1 has a rate of 1.0929 percent, which includes
San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond and San Mateo Comm Coll bond.
153
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. $2,628,033,718 1 13.70% $2,198,149,937 1 15.68%
Slough SSF LLC 646,570,261 2 3.37% 465,349,000 3 3.32%
ARE San Francisco LLC 454,787,159 3 2.37% 255,371,399 6 1.82%
HCP Oyster Point III LLC 439,463,289 4 2.29% --
Brittania Pointe Grand LP 309,612,762 5 1.61% 273,564,000 5 1.95%
United Airlines Inc 271,668,869 6 1.42% 289,968,749 4 2.07%
AP3-SF2 CT South LLC 216,949,238 7 1.13% --
KR Oyster Point LLC 169,580,792 8 0.88% --
Gateway Center LLC 149,332,226 9 0.78% 131,945,178 9 0.94%
SSF Logistics Inc 127,129,688 10 0.66% --
Slough BTC LLC De -- -- -- 546,250,000 2 3.90%
ASN Solaire LLC -- -- -- 143,578,457 7 1.02%
Myers Peninsula Venture -- -- -- 143,394,742 8 1.02%
Oyster Point LLC -- -- -- 84,000,000 10 0.60%
Subtotal $5,413,128,002 28.21% $4,531,571,462 32.33%
Total Net Assessed Valuation:
Fiscal Year 2018-19 $19,186,478,413
Fiscal Year 2009-10 $14,017,972,358
HdL Coren & Cone, 2009-10 & 2018-19 Top Ten Property Taxpayers (Net Values).
San Mateo County Assessor 2009-10 & 2018-19 Combined Tax Rolls and the SBE Non Unitary Tax Roll
Source:
2018-19 2009-10
CITY OF SOUTH SAN FRANCISCO
Principal Property Tax Payers
Current Year and Nine Years Ago
154
June 30, 2018Total % of TotalAssessed AV in ProjectProperty Tax PayerSecured Unsecured ValueAreaLand UseGenentech$641,198,159 $102,646,681 $743,844,840 16.02% Industrial, Office, R&DSlough SSF LLC DE683,563,1570 $683,563,157 14.72% IndustrialBritannia Pointe Grand LP446,937,794$446,937,794 9.63% IndustrialARE San Francisco LLC$233,684,862$233,684,862 5.03% Industrial, CommercialBMR 180 Oyster Point LLC217,408,355$217,408,355 4.68% CommercialGateway Center LLC DE146,404,145$146,404,145 3.15% CommercialASN Solaire LLC113,178,0850 $113,178,085 2.44% ResidentialHCP Inc101,628,279$101,628,279 2.19% UnknownCostco Wholesale Corp42,344,580 41,633,076 $83,977,656 1.81% CommercialAmgen SF LLC72,829,868 $72,829,868 1.57% IndustrialHPTMI II Properties Trust67,514,607$67,514,607 1.45% Residential, Hotels, MotelsGateway Boulevard LLC 62,372,093 $62,372,093 1.34% IndustrialPR 701 Gateway LLC 60,114,250 362,729 $60,476,979 1.30% CommercialBP Gateway Center LLC 60,446,565 $60,446,565 1.30% Commercial, Office, 2+ storiesBlue Line Transfer Inc. 47,956,558 $47,956,558 1.03% IndustrialFelcor CMB SSF Holdings LP 40,259,080 $40,259,080 0.87% Residential, Hotels, MotelsAreus Inc 35,946,914 $35,946,914 0.77% Commercial, Office, 2+ storiesCRP 6000 Shoreline LLC 34,105,000 $34,105,000 0.73% Commercial, Office, 2+ storiesTheravance Biopharma 32,362,536 $32,362,536 0.70% Industrial, Office, R&DOCI San Francisco LLC $29,392,581 26,780,291 $56,172,872 0.63% Residential, Hotels, MotelsTotal Top Twenty 3,064,455,064 276,615,181 3,341,070,245 71.36%Percent of AV 91.7% 8.3%Source: San Mateo County Assessor , RDA Secured & Unsecured SSF 2017 Tax RollsSource: Muni Services(1) Given the nature of the research performed at Genentech, a significant portion of the total assessed value of the Genentech Property is likely equipment. It would appear on the secured roll as that contains the value of personal property/improvements CITY OF SOUTH SAN FRANCISCOTwenty Largest Taxable Property Owners for Merged RDA Project Area155
Fiscal Percent of
Year Allocations (5) Collections Delinquencies Delinquent taxes
2010 13,697,389 (4)(4)0.0%
2011 13,351,506 (4)(4)0.0%
2012 13,360,854 (4)(4)0.0%
2013 13,740,246 (4)(4)0.0%
2014 14,928,197 (4)(4)0.0%
2015 15,184,788 (4)(4)0.0%
2016 15,994,773 (4)(4)0.0%
2017 17,065,875 (4)(4)0.0%
2018 17,894,855 (4)(4)0.0%
2019 19,365,814 (4)(4)0.0%
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
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Millions
156
CITY OF SOUTH SAN FRANCISCO
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
Governmental Activities
Loans from Lease Certificates
Fiscal Successor Revenue of Capital
Year Agency Bonds Participation Lease Loans Total
2010 0 $4,765,000 $961,671 $3,548,000 $9,274,671
2011 0 4,610,000 2,342,892 3,436,000 10,388,892
2012 $14,120,927 0 4,445,000 2,056,382 3,324,000 23,946,309
2013 13,343,039 0 0 3,084,553 0 16,427,592
2014 11,722,826 0 0 3,316,836 0 15,039,662
2015 11,370,152 0 0 2,786,573 0 14,156,725
2016 10,714,152 0 0 2,238,998 0 12,953,150
2017 10,691,152 0 0 1,673,522 0 12,364,674
2018 8,309,152 0 0 1,135,102 0 9,444,254
2019 4,845,152 0 0 753,619 0 5,598,771
Business-Type Activities
Sewer Certificates State Water Total Percentage
Fiscal Revenue of Resources Primary of Personal Per
Year Bonds Participation Loans Total Government Income (a) Capita (a)
2010 $5,350,000 $65,028,410 $70,378,410 $79,653,081 4.15% 1,209.21
2011 5,120,000 60,831,038 65,951,038 76,339,930 3.95% 1,187.12
2012 4,885,000 56,530,946 61,415,946 85,362,255 4.31% 1,310.70
2013 4,640,000 52,118,587 56,758,587 73,186,179 3.65% 1,113.78
2014 4,385,000 47,591,019 51,976,019 67,015,681 3.30% 1,019.27
2015 4,120,000 43,543,614 47,663,614 61,820,339 2.92% 957.19
2016 3,850,000 39,392,832 43,242,832 56,195,982 2.59% 858.60
2017 3,570,000 35,136,032 38,706,032 51,070,706 2.22% 761.32
2018 3,275,000 30,770,503 34,045,503 43,489,757 1.80% 648.35
2019 2,970,000 35,148,204 38,118,204 43,716,975 n/a n/a
Note : Debt amounts exclude any premiums, discounts, or other amortization amounts.
Sources: City of South San Francisco
State of California, Department of Finance (population)
U.S. Department of commerce, Bureau of the Census (income)
(a) See Schedule of Demographic and Economic Statistics for personal income and population data.
$0
$10
$20
$30
$40
$50
$60
$70
$80
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019MillionsTotal Governmental Total Business
157
CITY OF SOUTH SAN FRANCISCO
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2019
2018-19 Assessed Valuation:$19,186,478,413
Redevelopment Incremental Valuation:-
Adjusted Assessed Valuation:$19,186,478,413
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2019 % Applicable (1) Debt 6/30/19
San Mateo Community College District $801,050,076 8.586% $68,778,160
Jefferson Union High School District 237,695,639 2.154% 5,119,964
South San Francisco Unified School District 170,343,972 89.493% 152,445,931
Brisbane School District 4,835,437 14.707% 711,148
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $227,055,203
OVERLAPPING FUND DEBT:
San Mateo County General Fund Obligations $551,005,360 8.586% $47,309,320
San Mateo County Board of Education Certificates of Participation 8,140,000 8.586% 698,900
San Mateo County Flood Control District Certificates of Participation 16,815,000 58.921% 9,907,566
South San Francisco Unified School District Certificates of Participation 3,585,000 89.493% 3,208,324
Jefferson Union High School District Certificates of Participation 655,601 2.154% $14,122
City of South San Francisco Loans Payable 4,845,152 100.000% 4,845,152
City of South San Francisco Capital Leases 753,619 100.000% 753,629
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT:$66,737,013
TOTAL DIRECT DEBT $5,598,781
Total Overlapping Debt $288,193,435
COMBINED TOTAL DEBT $293,792,207 (2)
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the city.
Ratios to Adjusted Assessed Valuation:
Total Overlapping Tax and Assessment Debt 1.18%
Total Direct Debt 0.03%
Combined Total Debt 1.53%
Source: California Municipal Statistics, Inc. and City of South San Francisco
510-658-2640 Austin Busch
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, tax allocation bonds, and Successor Agency Debt.
158
ASSESSED VALUATION:$19,186,478,413
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)719,492,940
LESS AMOUNT OF DEBT SUBJECT TO LIMIT:0
LEGAL BONDED DEBT MARGIN $719,492,940
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
2010 $525,673,963 0 $525,673,963 0.00%
2011 511,748,388 0 511,748,388 0.00%
2012 518,513,854 0 518,513,854 0.00%
2013 524,729,886 0 524,729,886 0.00%
2014 536,413,229 0 536,413,229 0.00%
2015 558,585,910 0 558,585,910 0.00%
2016 580,561,386 0 580,561,386 0.00%
2017 617,102,145 0 617,102,145 0.00%
2018 647,787,001 0 647,787,001 0.00%
2019 719,492,940 0 719,492,940 0.00%
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, 2019
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.
159
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
2010 $23,321,582 $13,774,757 $9,546,825 $225,000 $230,941 $455,941 20.94
2011 23,735,469 13,527,544 10,207,925 230,000 223,973 453,973 22.49
2012 25,365,824 13,924,334 11,441,490 235,000 216,501 451,501 25.34
2013 24,782,587 15,151,968 9,630,619 245,000 208,459 453,459 21.24
2014 26,908,316 14,904,225 12,004,091 255,000 199,831 454,831 26.39
2015 26,147,550 18,630,672 7,516,878 265,000 190,533 455,533 16.50
2016 25,610,518 13,514,706 12,095,812 270,000 180,566 450,566 26.85
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
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
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019MillionsRevenue (1)
Expenses (2)
160
SEWER DEBT SERVICE COVERAGE
SEWER RENTAL ENTERPRISE FUND
LAST FIVE FISCAL YEARS
Fiscal Year
2015 2016 2017 2018 2019
Revenues
Service Charges $19,758,128 $19,515,093 $19,750,636 $22,188,154 $23,556,871
Connection and Other Fees 122,640 104,283 147,134 229,002 521,205
Interest Income 106,830 238,389 23,552 31,061 488,437
Developer Fees
Other Cities' Participation (1)6,159,937 5,752,765 5,763,644 5,834,455 5,827,480
Total Revenues $26,147,535 $25,610,530 $25,684,966 $28,282,672 $30,393,993
Operating Expenses (2)$14,987,305 $18,759,650 $13,514,718 $19,073,943 $20,398,157
Wastewater System Net Revenues $11,160,230 $6,850,880 $12,170,248 $9,208,729 $9,995,836
Parity Debt Service (3)
State Water Resources Control Board Loans $5,445,162 $5,449,692 $5,454,747 $5,469,175 $5,477,075
CSCDA Series 2005D Revenue Bonds 188,148 178,036 167,284 155,706 143,608
Total Parity Debt $5,633,310 $5,627,728 $5,622,031 $5,624,881 $5,620,683
Total Parity Debt Service Coverage 1.98 1.22 2.16 1.64 1.78
10,012,867 10,012,867 10,012,867 10,012,867 10,012,867
(2) Excludes depreciation, capital expenditures and debt service.
(3) Includes Sewer Revenue Bonds and State Water Loan payments
(1) Primarily consists of payments from the City of San Bruno. The City of San Bruno is a co-owner of the Plant and pays the City in advance on a quarterly basis for the City of San Bruno's
share of operating costs. See "Wastewater System" herein.
(4) Reflects an adopted increase in rates for Fiscal Year 2004-05 of 25% per Resolution No. 68-2004, adopted by the City Council on July 14, 2004 and effective on and after July 1, 2004 and an
adopted increase in rates for Fiscal Year 2005-06 of 9% per Resolution No. 68-2005, adopted by the City Council on June 22, 2005 and effective on and after June 22, 2005.
CITY OF SOUTH SAN FRANCISCO
161
CITY OF SOUTH SAN FRANCISCO
REDEVELOPMENT PLEDGED REVENUE COVERAGE
LAST SEVEN FISCAL YEARS
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements Fiscal Available Debt Service Requirements
Year Revenue Principal Interest Total Coverage Year Revenue Principal Interest Total Coverage
2013 $1,490,000 $3,030,181 $4,520,181 2013 $210,000 $79,995 $289,995
2014 1,545,000 2,971,344 4,516,344 2014 220,000 69,780 289,780
2015 1,605,000 2,904,331 4,509,331 2015 230,000 58,750 288,750
2016 1,680,000 2,834,619 4,514,619 2016 245,000 46,875 291,875
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
Bond was paid off in fiscal year 2017
Funding Source: RDA tax increment revenues Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements Fiscal Available Debt Service Requirements
Year Revenue Principal Interest Total Coverage Year Revenue Principal Interest Total Coverage
2013
2014
2015
2016
2017
2018
2019
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements
Year Revenue Principal Interest Total Coverage
2013 $1,490,000 $3,030,181 $4,520,181
2014 1,545,000 2,971,344 4,516,344
2015 1,605,000 2,904,331 4,509,331
2016 1,680,000 2,834,619 4,514,619
2017 1,745,000 2,761,756 4,506,756
2018 0 0 0
2019 0 0 0
Note: Redevelopment Agencies abolished as of 1/31/2012.
Numbers for 2012 include the first and second RPTTF distributions received.
(A) Shows coverage of all non-housing bonds pledged to tax increment.
Source: City of South San Francisco, Department of Finance
RDA All Non-housing (A)
2006 RDA Revenue Bonds
Funding Source: RDA Gateway and Low Moderate Income Housing tax increment revenues.
Gateway bonds defeased in FY 05-06.
1999 RDA Revenue Bonds (Housing)
1989 Cal Health Facilities Financing Authority Revenue Bonds1999 Certificates of Participation
162
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
2009 65,000 $1,948,798 $29,982 10.3% 745,858 8.71%
2010 65,872 1,918,061 29,118 10.7% 754,285 8.73%
2011 64,307 1,932,618 30,053 9.7% 729,443 8.82%
2012 65,127 1,982,857 30,446 6.3% 735,678 8.85%
2013 65,710 2,005,666 30,523 5.2% 747,373 8.79%
2014 65,749 2,033,156 30,923 4.5% 745,635 8.82%
2015 64,585 2,114,826 32,744 3.6% 765,135 8.44%
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%
Notes:
** All data were updated to reflect the City of South San Francisco's current information available
through HDL, Coren & Cone
Data Sources:
(1) Population: HDL/California State Dept of Finance.
(2) Personal and per capita income: HDL, Coren & Cone
(3) Unemployment Data: HDL/California Employment Development Department
(4) County population: https://www.smcgov.org/fast-facts
CITY OF SOUTH SAN FRANCISCO
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN YEARS
$1,000,000
$1,500,000
$2,000,000
$2,500,000
City Personal Income
(in Thousands)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
City Unemployment Rate
8.20%
8.30%
8.40%
8.50%
8.60%
8.70%
8.80%
8.90%
City Population % of County
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
City Per Capita Personal Income
163
Percentage Percentage
Number of of Total City Number of of Total City
Employer Employees Rank Employment Employees Rank Employment
Genentech Inc.8,632 1 12.9% 8,552 1 13.0%
Costco Wholesale (3 stores)834 2 1.2% 403 3 0.6%
Life Technologies Corporation 622 3 0.9%
Amgen San Francisco LLC 500 4 0.7% 751 2 1.1%
MRL San Francico LLC (2 locations)449 5 0.7%
Successfactors, Inc.352 6 0.5%
ZS Associates, Inc 300 7 0.4%
Amazon.com Services, Inc 291 8 0.4%
Fluidigm Corporation 223 9 0.3%
American Etc Inc./Royal Laundry 211 10 0.3% 307 4 0.5%
Orowheat/Entenmanns 300 5 0.5%
Guckenheimer Enterprises Inc 200 6 0.3%
Columbus Manufacturing Inc 191 7 0.3%
Matagramo Inc.183 8 0.3%
Actelion Pharmaceuticals US Inc.176 9 0.3%
Nippon Express USA, Inc 174 10 0.3%
Subtotal 12,414 18.5% 11,237 17.1%
Total City Population 67,078 65,872
Data Sources:
(1) SSF Business License Database- Business licenses expiring 12/31/19.
(2) City of South San Francisco CAFR 2009-10
(3) Population: HDL/California State Dept of Finance
2009-102018-19
CITY OF SOUTH SAN FRANCISCO
Principal Employers
Current Year and Nine Years Ago
164
CITY OF SOUTH SAN FRANCISCO
Full-Time Equivalent City Government Employees by Function
Last Ten Fiscal Years (Adopted Operating Budget)
Functions 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
General Government (1) 37.00 37.00 36.60 36.60 37.60 40.60 47.10 47.10 43.60 44.60
Fire Department 82.48 82.48 82.48 82.48 82.98 83.48 92.68 92.68 92.68 91.93
Police Department 114.65 112.65 110.65 115.65 119.75 118.87 120.87 120.87 120.87 122.87
Park, Rec. & Maintenance Services (3)116.34 116.05 107.86 111.66 117.21 121.31 134.16 137.19 144.29 144.79
Library 40.81 40.81 35.34 35.35 37.66 37.71 38.71 39.26 40.49 41.49
Economic and Comm. Development (2) 26.45 28.95 24.45 23.45 24.40 26.15 27.15 29.40 30.40 30.40
Public Works (2) (3) 43.85 40.05 43.03 45.02 47.21 47.68 49.00 49.00 49.00 53.00
Water Quality Control Plant 39.54 40.64 38.82 38.82 39.63 39.06 41.74 41.50 41.50 41.50
Total 501.12 498.63 479.23 489.03 506.44 514.86 551.41 557.00 562.83 570.58
Notes:
1. City Manager, Council members, City Treasurer, City Clerk, HR, IT and Finance are under General Government.
2. Oversight of the Engineering has been moved from Economic and Community Development to Public Works.
3.Oversight of Parks and Common Greens was moved from PW to Parks, Rec and Maintenance Services
Source: City of South San Francisco Adopted Operating Budget FY 2018-19
0
100
200
300
400
500
600
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Employee
General Government (1)Fire Department
Police Department Public Works (2) (3)
Park, Rec. & Maintenance Services (3)Library
Economic and Comm. Development (2)Water Quality Control Plant
165
2015 2016 2017 2018 2019
Function/Program
Public safety:
Fire:
Inspections conducted 1,817 2,563 3,426 2,292 2,511
Police:
Police calls for service 31,532 32,477 33,313 34,811 38,299
Law violations:
Part I crimes 1,874 2,126 2,103 2,276 2,007
Physical arrests (adult and juvenile) 1,933 2,071 1,870 1,891 1,943
Traffic violations 3,828 4,211 3,785 3,359 3,620
Parking violations 13,378 12,006 15,291 18,339 26,228
Public works
Street resurfacing (miles) (Eng Div)(2) 0 2 8 3.3 7.0
Potholes repaired (square miles prior) /(square feet)0.11 2 0 (5) 3221 410
Asphalt used for street repairs (tons) 250 151 94 148 13
Culture and recreation:
Recreation class participants 26,879
(3) 23,399 23,939 25,688 23,394
Library:
Total items borrowed (1) 643,630 565,806 558,106 544,059 582,497
Items in collection (1) 130,106 (4) 208,400 209,895 219,114 228,224
Wastewater
Residential connections 16,470 16,491 16,488 12,556 12,559
Commercial connections 1,560 1,561 1,562 1,575 1,576
Other connections 128 131 140 140 140
Average daily sewage treatment (millions of gallons)8.89 7.92 8.41 8.62 8.62
Note: N/A denotes information not available.
(1) Year 2015 decrease is due to clearing out of outdated and damaged items in the collection. Prior to Grand library's remodel,
most of the outdated items are already cleaned out.
(2) Street resurfacing project estimated early next year (2016).
(3) Registration counts have excluded all withdrawals from the classes for the year while the numbers in 2011-2015 did not.
(4) New items added for Grand Library and electronic books are also included.
(5) Beginning 2018, pothole repairs will be measured by square feet instead of square miles.
CITY OF SOUTH SAN FRANCISCO
Operating Indicators by Function/Program
Last Five Fiscal Years
166
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Function/Program
Public safety:
Fire stations 5 5 5 5555555
Police stations (5) 1 1 1 1111111
Police Fleet (1) 48 52 51 51 50 53 53 52 59 63
Public works
Miles of streets 127 127 127 127 127 127 127 127 127 127
Street lights (6) 4,156 4,160 4,160 4,505 4,505 4,505 4,505 4,505 4,531 4,531
Parking District lights (8) 20 20 20 20 20 20 20 16 16 16
Traffic Signals 73 74 74 74 74 74 76 76 76 76
Culture and recreation:
Community services:
City parks 28 28 28 28 28 28 28 28 28 28
City parks acreage 190 190 190 190 190 190 190 190 190 210
Playgrounds 24 24 24 24 24 24 24 24 24 24
City trails 6 6 6 6666666
Community gardens 1 1 1 1111111
Community centers 4 4 4 4444444
Senior centers (3) 2 1 1 1111111
Skate Park (2) 1 1 1 1111111
Dog park (2) 1 1 1 1111111
Swimming pools 1 1 1 1111111
Tennis courts 7 7 7 7777777
Basketball Courts 12 12 12 12 12 12 12 12 12 12
Baseball/softball diamonds11 1111 11111111111111
Soccer/football fields 5 5 5 5555555
Library:
City Libraries (4) 2 2 2 2222222
Wastewater
Miles of sanitary sewers 164 164 164 164 164 164 164 164 164 164
Miles of storm sewers 125 125 125 125 125 125 125 125 125 125
Number of treatment plants 1 1 1 1111111
Source: ssf.net/depts/rcs; Director of Rec & Comm Services; Superintendent of parks & Maintenance
(1) Year 2009, the 3 units added are not new. These are units that was not included on the previous Fleet count.
(2) Year 2010, Skate park and dog park was added on the list.
(3) The only senior center is Magnolia Center but programming still continues at El Camino.
(4) Community Learning Center not included on count as it is only a homework center not a library.
(5) Year 2012 the Police substation located behind Miller parking garage is not included.
(6) Year 2013- Includes all lights in SSF billed as LS-2 from PG&E
(8) Year 2017- Lot 6 sold for Rotary Plaza development.
CITY OF SOUTH SAN FRANCISCO
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
167
2017 2018 2019
Transient Occupancy Tax Detail
9% TOT collected $12,256,007 $12,580,680 $15,535,213
1% Measure I Special Tax 1,361,779 1,397,853 1,556,009
Total TOT Collection $13,617,786 $13,978,533 $17,091,222
1% Measure I Special Tax Use
Police $272,356 $279,571 $311,202
Fire 272,356 279,571 311,202
Library 272,356 279,571 311,202
Parks 272,356 279,571 311,202
Recreation 272,356 279,571 311,202
Total 1% Measure I Special Tax $1,361,779 $1,397,853 $1,556,009
CITY OF SOUTH SAN FRANCISCO
Collection and Use of 1% Special Transient Occupancy Tax (TOT) Approved by Voters as Measure I *
Miscellaneous Information
Last Three Fiscal Years
* Note: Measure I, a one percent supplemental special tax to the already existing 9% general transient occupancy tax (TOT) was approved on Nov. 2, 2004 and took
effect January 1, 2005. Special tax was earmarked for use to supplement Police, Fire, Library, and Parks and Recreation expenditures.
168