HomeMy WebLinkAboutReso 30-2022 (22-118)City of South San Francisco P.O. Box 711 (City Hall,
400 Grand Avenue)
South San Francisco, CA
• City council
' Resolution: RES 30-2022
File Number: 22-118 Enactment Number: RES 30-2022
RESOLUTION APPROVING THE ANNUAL
COMPREHENSIVE FINANCIAL REPORT FOR
FISCAL YEAR ENDED JUNE 30, 2021, MID -YEAR
UPDATE FOR FISCAL YEAR ENDING JUNE 30, 2022,
AND ADDITIONAL APPROPRIATION
CONSIDERATIONS.
WHEREAS, the Government Accounting Standards Board Statement 34 (GASB 34) requires
the City of South San Francisco to provide an overview of its financial activities for the fiscal year; and
WHEREAS, the City of South San Francisco publishes an Annual Comprehensive Financial
Report (ACFR), which includes its Basic Financial Statements as defined in Governmental Accounting
Standards, as well as Supplementary Information; and
WHEREAS, the City's independent auditor opined that that the City's financial statements
present fairly, in all material respects, the City's financial position as of year ended June 30, 2021; and
WHEREAS, the auditor has as part of its most recently completed audit prepared a letter to the
City Council, also known as the Independent Auditor's Report, outlining the scope of the audit review;
and
WHEREAS, on June 23, 2021, a resolution adopting the Fiscal Year ("FY") 2021-22 budget
was approved by the City Council; and
WHERAS, preliminary (unaudited) financial results for the first half of FY 2021-22 are
available; and
WHEREAS, additional appropriations are necessary to fund certain projects and/or programs
for FY2021-22; and
WHEREAS, the availability of unrestricted funds have been identified within the City's
General Fund as a result of the audit for year ended June, 30, 2021; and
WHEREAS, on February 8, 2022, the information related to the above was presented and
accepted by the Budget Standing Committee at a public meeting.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San
Francisco that
City of South San Francisco Page 1
File Number: 22-118
the City Council accepts the attached results of the attached ACFR.
Enactment Number: RES 30-2022
BE IT FURTHER RESOLVED that the City Council approves the revenue adjustments to the
FY2021-22 budget based upon the preliminary unaudited financial data available through December 31,
2021.
BE IT FURTHER RESOLVED that the City Council approves the additional expenditure
requests for FY2021-22 described in the report associated with this resolution and approves the
appropriation of additional funds, thereby amending the FY2022-22 expenditure budget.
BE IT FURTHER RESOLVED that the fund balance and reserve categories presented in the
report herein related to FY2020-21 are designed for decision-making and informational purposes only
for the City Council and are not intended to replace the reserve classifications supplied by GASB
Statement 54 for governmental funds.
BE IT FURTHER RESOLVED that the Director of Finance is hereby authorized to use
professional judgment to make corrections to the adopted budget schedules as necessary to follow the
intent of Council's appropriation approval if any related numbers represented herein do not match.
BE IT FURTHER RESOLVED that any adjustments to staffing levels, as detailed in the staff
report and accompanying attachments herein are hereby approved, and the Director of Finance is hereby
authorized to make commensurate budget adjustments, if necessary.
At a meeting of the City Council on 2/23/2022, a motion was made by Vice Mayor Nicolas,
seconded by Councilmember Coleman, that this Resolution be approved. The motion passed.
Yes: 5 Mayor Nagales, Vice Mayor Nicolas, Councilmember Coleman, Councilmember
Flores, and Councilmember Addiego
Attest by �_ V soo-i- �LL
�osa Govea Acosta, City Clerk
City of South San Francisco Page 2
ANNUAL COMPREHENSIVE FINANCIAL REPORT
CITY OF
SOUTH SAN FRANCISCO
CALIFORNIA
YEAR ENDED JUNE 30, 2021
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2021
Prepared by:
Department of Finance
This Page Left Intentionally Blank
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents
Page
i
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 .................................................................................................................. 29
Statement of Activities ...................................................................................................................... 30
Fund Financial Statements:
Major Governmental Funds:
Balance Sheet ................................................................................................................................ 36
Reconciliation of Governmental Fund Balances to Net Position of Governmental Activities .... 38
Statement of Revenues, Expenditures, and Changes in Fund Balances ....................................... 40
Reconciliation of the Net Change in Fund Balances Total Governmental Funds with
the Statement of Activities ........................................................................................................ 42
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual –
Budgetary Basis:
General Fund ....................................................................................................................... 43
Low and Moderate Income Housing Assets ....................................................................... 44
Major Proprietary Funds:
Statement of Net Position .............................................................................................................. 46
Statement of Revenues, Expenses, and Changes in Fund Net Position ........................................ 47
Statement of Cash Flows ............................................................................................................... 48
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents
Page
ii
FINANCIAL SECTION (Continued)
Fiduciary Funds:
Statement of Fiduciary Net Position ............................................................................................. 50
Statement of Changes in Fiduciary Net Position .......................................................................... 51
Notes to Basic Financial Statements ...................................................................................................... 53
Required Supplementary Information:
Schedule of Changes in Net Pension Liability and Related Ratios-
Miscellaneous Plan ............................................................................................................ 100
Schedule of Contributions – Miscellaneous Plan ........................................................................ 101
Schedule of Changes in Net Pension Liability and Related Ratios – Safety Plan ...................... 102
Schedule of Contributions – Safety Plan ..................................................................................... 103
Schedule of Changes in the Net OPEB Liability and Related Ratios ......................................... 104
Schedule of Contributions – Retiree Healthcare OPEB Plan ...................................................... 105
Notes to Schedule of Employer Contributions ............................................................................ 105
Supplementary Information:
General Fund:
Combining Balance Sheets ............................................................................................................. 110
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balances ..................................................................................................................... 111
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balance Budget and Actual - (Non GAAP Legal Basis) ........................................... 112
Major Governmental Funds Other Than the General Fund and Special Revenue Funds:
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:
East of 101 Sewer Impact Fees Capital Projects Fund (Non GAAP Legal Basis) ................ 116
Traffic Impact Fees Capital Projects Fund (Non GAAP Legal Basis) .................................. 117
Child Care Impact Fees Capital Projects Fund (Non GAAP Legal Basis) ............................ 118
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents
Page
iii
FINANCIAL SECTION (Continued)
Developer Deposit Capital Projects Fund (Non GAAP Legal Basis) .................................... 119
Capital Infrastructure Reserve Fund (Non GAAP Legal Basis) ............................................ 120
Capital Improvements Police Stations Capital Projects Fund (Non GAAP Legal Basis) ..... 121
Capital Improvements Civic Campus Capital Projects Fund (Non GAAP Legal Basis) ...... 122
Non-major Governmental Funds:
Combining Balance Sheet ............................................................................................................... 126
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances ..................................................................................................................... 132
Budgeted Non-major Government Funds:
Combining Schedule of Revenues, Expenditures, and Changes
in Fund Balances – Budget and Actual ................................................................................... 138
Internal Service Funds:
Combining Statement of Net Position ............................................................................................ 146
Combining Statement of Revenues, Expenses and Changes in Fund Net Position ....................... 147
Combining Statement of Cash Flows ............................................................................................. 148
STATISTICAL SECTION
Net Position by Component – Last Ten Fiscal Years .................................................................... 151
Changes in Net Position – Last Ten Fiscal Years .......................................................................... 152
Fund Balances of Governmental Funds – Last Ten Fiscal Years .................................................. 156
Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ................................ 158
Assessed Value of Taxable Property – Last Ten Fiscal Years ...................................................... 160
Direct and Overlapping Governments – Property Tax Rates
Last Ten Fiscal Years ................................................................................................................ 161
Principal Property Taxpayers – Current Year and Nine Years Ago .............................................. 163
Property Tax Levies and Collections – Last Ten Fiscal Years ...................................................... 164
CITY OF SOUTH SAN FRANCISCO, CALIFORNIA
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents
Page
iv
STATISTICAL SECTION (Continued)
Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ........................................................ 165
Computation of Direct and Overlapping Debt ............................................................................... 166
Computation of Legal Bonded Debt Margin ................................................................................. 167
Revenue Bond Coverage Sewer Rental Enterprise Fund – Last Ten Fiscal Years ....................... 168
Sewer Debt Service Coverage Sewer Rental Enterprise Fund – Last Six Fiscal Years ................ 169
Redevelopment Pledged Revenue Coverage – Last Eight Fiscal Years ........................................ 170
Demographic and Economic Statistics – Last Ten Fiscal Years ................................................... 171
Principal Employers – Current Year and Nine Years Ago ............................................................ 172
Full-Time Equivalent City Governmental Employees by Function – Last Ten Fiscal Years ....... 173
Operating Indicators by Function/Program – Last Seven Fiscal Years ......................................... 174
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ......................................... 175
Miscellaneous Information – Last Three Fiscal Years .................................................................. 176
January 4, 2022
Honorable Mayor and Members
of the City Council
City of South San Francisco
South San Francisco, California
The Annual Comprehensive Financial Report (ACFR) of the City of South San
Francisco (the City) for the fiscal year ended June 30, 2021, is hereby submitted.
Responsibility for the accuracy of the data, and the completeness and fairness of
the presentation, including all disclosures, rests with the City. To the best of our
knowledge and belief, the enclosed data is accurate in all material respects and is
reported in a manner designed to present fairly the financial position and results of
operations of the various funds of the City. All disclosures necessary to enable the
reader to gain an understanding of the City’s financial activities have been
included.
This report includes all financial activities of the City of South San Francisco,
including financial information for the City, as the primary government, and for its
component unit, for which the City is considered financially accountable. The South
San Francisco Conference Center is the component unit and is included because
of the significance of its governing, operational, and/or financial relationships with
the City. The Successor Agency that was created due to the Redevelopment
Agency dissolution is also included in this report.
Management’s Discussion & Analysis (MD&A) provides a narrative introduction
overview and analysis to accompany the Basic Financial Statements. This letter of
transmittal is designed to complement the MD&A and should be read in
conjunction with it. The MD&A is found immediately following the report of the
independent auditor in the financial section.
CITY COUNCIL 2021
MARK NAGALES, MAYOR
BUENAFLOR NICOLAS, VICE MAYOR
MARK ADDIEGO, (AT LARGE), MEMBER
JAMES COLEMAN (DISTRICT 4), MEMBER
EDDIE FLORES, (AT LARGE), MEMBER
MIKE FUTRELL, CITY MANAGER
v
BACKGROUND OF THE CITY
The City of South San Francisco encompasses approximately 9.5 square miles
and has a population of 67,408. The City employs approximately 500 full-time
regular employees and is a full-service city which includes public safety (police,
fire and paramedics), libraries, parks, cultural and recreational activities, senior
citizen services, public works, public improvements, engineering, planning,
building regulation, economic development, drainage, street lighting, and general
administrative services. Sewer service, downtown parking operations, and storm
water management are accounted for in the City’s enterprise funds. The
Conference Center Authority is included in the financial statements by discrete
presentation – that is, the Authority’s financial data is reported in a column
separate from the financial data of the City. Water and solid waste services are
provided by private entities.
South San Francisco was incorporated and became a general law city of the State
of California on September 19, 1908. The form of government is the Council-
Manager plan. Each Councilmember serves a term of four years, with a rotating
Mayor chosen by majority vote of the Council, for a term of one year. The City
Manager is the administrative head of the government of the City, under the
direction of the City Council.
On July 11, 2018, the City Council adopted Ordinance No. 1558-2018 to change
from at-large to district elections, establishing boundaries and sequencing of
elections within the districts. The Councilmembers in office will continue to
represent the City at-large until the expiration of their full term to which they were
elected and until their successor is qualified. Under this new structure, three district
Council seats are up for election in 2022.
On November 3, 2020, residents of the City of South San Francisco elected Mark
Nagales as councilmember for District 2 and James Coleman as councilmember
for District 4. Both councilmembers will serve a term of four years. The remaining
three at-large City Council seats are up for election in 2022.
The offices of City Clerk and City Treasurer are elected and will remain at-large.
The City Attorney is appointed by the City Council.
All department heads are appointed and serve under the administrative direction
of the City Manager. All other officers and employees of the City are appointed by
department heads.
vi
FINANCIAL INFORMATION
In developing and appraising the City’s accounting system, consideration is given
to the adequacy of internal accounting controls. Internal accounting controls are
designed to provide reasonable but not absolute assurance regarding: (1) the
safeguarding of assets against loss from unauthorized use or disposition; (2) the
reliability of financial records for preparing financial statements and maintaining
accountability for assets; and (3) transactions being properly executed in
accordance with management’s authorization.
The concept of reasonable assurance recognizes that: (1) the cost of a control
should not exceed the benefits likely to be derived; and (2) the evaluation of costs
and benefits requires estimates and judgments by management.
Basic characteristics of sound internal accounting control include segregation of
accounting duties, approvals of accounting transactions, and regular reconciliation
of detail and control records.
All internal control evaluations occur within this framework. We believe that the
City’s internal accounting controls adequately safeguard assets and provide
reasonable assurances of proper recording of financial transactions.
The City adopts fiscal year budgets for its general, special revenue, debt service,
enterprise, and capital project funds. The government also maintains an
encumbrance accounting system as one technique of accomplishing budgetary
control. Encumbered amounts lapse at year-end. However, encumbrances
generally are re-appropriated as a part of the following year’s budget.
In November 2015, voters in the City passed Measure W, which increased the
sales tax rate within the City by 0.50%. The tax is deposited into the City's General
Fund and will be used to pay for City services. This tax revenue is partially used to
pay the debt on bonds or other financings to accelerate projects. In February 2020,
the City issued $43.9 million of lease revenue bonds to finance the design and
construction of a new Police facility which is due to be fully operational in early
January 2022. Furthermore, in June 2021, the City issued $86.4 million in lease
revenue bonds for the construction of a new Civic Center Campus, installation of
a solar roof at the City’s Corporation Yard and funding of the City’s Road
Rehabilitation program. The Civic Center Campus will include a new building to
house a community library, the City’s department of Parks and Recreation, the City
Council chambers, and an approximately 1.3 acre community park.
vii
In February 2020, S&P Global Ratings assigned an issuer credit rating of triple A
(“AAA”) to the City. AAA is the highest rating possible and is important as higher
ratings generally results in lower borrowing costs and the City was able to benefit
from this in its FY 2020-21 bond issuance. The AAA rating is a good indicator of
the City's strong financial position, solid executive management, fiscally sound
policies and practices, and responsible budgetary performance.
The City’s Reserve Policy is aligned with the Government Finance Officers
Association (GFOA) best practices recommendation for reserves, setting aside 15-
20 percent of operating revenues.
OTHER INFORMATION
Independent Audit
The City engaged an independent accounting firm to audit the books of accounts,
financial records, transactions, and financial statements. Their report covering
Fiscal Year 2020-21 is in the Financial Section of this report.
Award
The City’s ACFR for the fiscal year ended June 30, 2020, received a Certificate of
Achievement for Excellence in Financial Reporting from the Government Finance
Officers Association. The award signified the report’s attainment of easily readable
and efficiently organized content and satisfaction of generally accepted accounting
principles and legal requirements. The award is valid for a period of one year only.
However, the City believes that this current report continues to conform to program
eligibility requirements.
Acknowledgments
The preparation of the ACFR was made possible by the dedicated services of the
entire staff of the Finance Department and our auditors. Each member of the
department has our sincere appreciation for the contributions made in the
preparation of this report.
Respectfully submitted,
____________________________ __________________________
Janet Salisbury Mike Futrell
Director of Finance City Manager
viii
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of South San Francisco
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
ix
x
City Council & Directory of Officials*
City Council
Mark Addiego Mayor
Mark Nagales (District 2) Vice Mayor
James Coleman (District 4) Councilmember
Buenaflor Nicolas (AT LARGE) Councilmember
Eddie Flores (AT LARGE) Councilmember
Elected Officials
Rosa Govea Acosta City Clerk
Frank Risso City Treasurer
Appointed Officials
Mike Futrell City Manager
Sharon Ranals Assistant City Manager / 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
Nell Selander Deputy Economic & Community Development Director
Leah Lockhart Human Resources Director
Jess Magallanes Fire Chief
Eunejune Kim Public Works Director
Valerie Sommer Library Director
Budget Subcommittee
Mark Addiego
Buenaflor Nicolas
*As of November 30, 2021
xi
This Page Left Intentionally Blank
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, 2021, 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. We did not audit the
discretely presented component unit financial statements of the South San Francisco Conference Center Authority
(Authority), which represents 0.61%, 1.20%, and 0.77%, respectively, of the assets, net position, and revenue of
the primary government. Those financial statements were audited by other auditors, whose report thereon has
been furnished to us and our opinion, insofar as it relates to the amounts included for the Authority, is based
solely on the report of the other auditors. 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.
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, 2021, 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.
Change in Accounting Principles
Management adopted the provisions of Governmental Accounting Standards Board Statement No. 84, Fiduciary
Activities, which became effective during the year ended June 30, 2021 and required the restatement of net
position as discussed in Note 1T to the financial statements.
Management also early-adopted the provisions of Governmental Accounting Standards Board Statement No. 98
-The Annual Comprehensive Financial Report for the year ended June 30, 2021, which establishes the term
annual comprehensive financial report and its acronym ACFR. That new term and acronym replace instances of
comprehensive annual financial report and its acronym in generally accepted accounting principles for state and
local governments.
The emphasis of these matters does not constitute a modification to our opinions.
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 January 4, 2022 on
our consideration of the City’s internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City’s internal control over financial reporting and
compliance.
Pleasant Hill, California
January 4, 2022
3
This Page Left Intentionally Blank
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) 2020-21 FINANCIAL HIGHLIGHTS
Summary:
Fiscal Year (FY) 2020-21 proved to be a challenging and unusual year for the City of South San
Francisco, both financially and operationally, due to the continuing COVID-19 pandemic which
began in early 2020. The various pandemic-related restrictions continued in one form or another
well into FY 2020-21, impacting all aspects of society and leading to widespread negative
economic impacts for individual citizens, businesses (hospitality, restaurant and retail industries
in particular) and government agencies alike. For the City, this meant large declines in some
revenue streams such as Transient Occupancy Tax (TOT). In response, the City sought to reduce
expenditures, all the while trying to enhance services for the most vulnerable in the community
through food drives, testing events, vaccine clinics and rental assistance programs, to name a few.
Just prior to the beginning of the COVID-19 pandemic, S&P Global Ratings (“S&P”) assigned an
issuer rating of triple A (“AAA”) to the City which is the highest rating possible and generally
results in lower borrowing costs. In a release announcing the rating, S&P noted the City's strong
financial position, bolstered by the local economic growth and development momentum seen prior
to the pandemic largely fueled by development growth from the biotechnology and housing
sectors. It was this sound financial footing, along with solid executive management, fiscally sound
policies and practices, and sound budgetary performance that allowed the City to weather the
impacts from the COVID-19 pandemic through FY 2020-21.
Part of the federal response to the COVID-19 pandemic was to pass the American Rescue Plan
Act (ARPA) in March 2021 which included $350 billion in stimulus funds for eligible state, local,
territorial and Tribal governments. The City of South San Francisco was allocated a total of $12.3
million in ARPA funds, half of which was received in June 2021 and recorded in its own fund
ready to be deployed on City Council approved projects related to the negative economic impacts
caused by the pandemic. The second half of the funding is due to be received in June 2022.
The General Fund is the main fund of the City, accounting for principal revenues including taxes,
licenses and permits, charges for services, grants and interest income, as well as expenditures
related to delivery of public services by City departments such as Police, Fire, Public Works, Parks
and Recreation, Library and Administrative Services. Performance of this fund is viewed as the
main barometer of the financial health of the City. Compared to the prior year, FY 2020-21 General
Funds revenues (excluding transfers in from other funds and special items) decreased by $7.4
million, or 5.7%.
5
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
The negative economic impact caused by the global COVID-19 pandemic is the main driver for
this reduction, primarily realized in Transient Occupancy Tax (TOT) and charges for services.
This was offset partially by continuing upward trends in property tax, reflective of the strong
fundamentals of the local economy.
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 Fiscal Year (FY) 2020-21 increased by $27.4
million, or 9.0%, from $304.7 million to $332.1 million in comparison to the prior year. The
increase is primarily due to further investment in City assets through bond issuance backed by
the underlying strength in the local economy generating Measure W tax revenue which is used
to make bond repayments as well as for direct funding of public facility projects such as the
new Police Station. The growth in assets of $149.4 million is partially offset by a $125.4
million increase in liabilities, mainly bond debt - $100.8 million.
Total Net Position for Business-Type activities in FY 2020-21 increased by $16.8 million, or
14.7%, from $114.0 million to $130.8 million in comparison to the prior year. The growth in
Net Position is due to a $7.5 million increase in cash and receivable balances at year end as
well as a $21.7 million increase in capital assets due to construction work underway at the
City’s Water Quality Control Plant (WQCP). This is partially offset by a $12.7 million
increase in liabilities which is mainly due to the loans required to undertake the work at the
WQCP.
City-wide Net Pension Liability to CalPERS for FY ending June 30, 2021 increased by $12.2
million, or 6.3%, to $205.3 million from $193.1 million in the prior year. The liability increase
was driven by revised actuarial valuations from CalPERS taking into account member
contributions and investment earnings.
Cash and investments at year end increased $12.4 million, or 5.0%, compared to the prior year,
despite the challenges from the COVID-19 pandemic, from $246.9 million to $259.3 million.
This reflects the underlying strength in the local economy as the City began to emerge from
the impacts of the pandemic during the fiscal year and the prudent policies put in place to
control expenditures.
Expenses from Governmental Activities (excluding transfers) decreased by $7.9 million, or
5.7%, to $132.4 million in FY2020-21 from $140.3 million in the prior year due to savings in
the Police department, Public Works, and Parks and Recreation. Expenses from Business-Type
Activities increased slightly by $0.4 million, or 1.3%, to $28.9 million compared to $28.5
million in the prior year.
6
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Revenues from Governmental Activities (excluding transfers and special items) decreased by
$10.3 million, or 5.9%, to $166.2 million in FY 2020-21 from $176.5 million in the prior year.
From a city-wide perspective, revenues from Business-Type Activities (excluding transfers
and special items) partially offset this with an increase of $6.7 million, or 20%, to $40.7 million
in FY2020-21 from $34.0 million in the prior year.
Property tax revenues categorized under Governmental Activities continued to increase in FY
2020-21 by $4.2 million, or 11.0%, to $41.6 million from $37.4 million in the prior year. This
was primarily due to a property market that remained buoyant and strengthened somewhat
during the pandemic as homeowners looked to make improvements or upsize for more space
while working from home.
Sales tax increased by $1.2 million, or 3.7% to $33 million in FY 2020-21 from $31.8 million
in the prior year. Early in the fiscal year, shelter-in-place orders related to the COVID-19
pandemic had a negative impact on this category but as the year progressed and vaccines were
rolled out, restrictions eased and the local and wider economy began to rebound and spending
levels increased, driving a recovery in sales tax revenue. This increase is wholly attributable
to growth in local Measure W sales tax revenues.
Transient Occupancy Tax (“TOT”) has been the most dramatically impacted revenue category
as a result of the shelter-in-place orders and travel restrictions put in place in response to the
COVID-19 pandemic. Local hotels experienced very high vacancy rates which led to a large
reduction in TOT collections. TOT revenue decreased by $7.1 million, or 51.5%, to $6.7
million in FY 2020-21 from $13.8 million in the prior year. As vaccination levels in the
population increased and restrictions began to ease during the year, hotel occupancy started to
rebound and collections increased accordingly. This trend is expected to continue.
Licenses and permits revenue for Governmental Funds decreased by a small amount in FY
2020-21 - $0.3 million, or 2.0%, from $15.9 million to $15.6 million. Despite the slight
reduction, revenues remain high in this category which is indicative of the continued growth
and development throughout the City despite the pandemic. South San Francisco continues to
see high levels of new construction, especially in the East of 101 area driven by non-residential
and biotechnology companies along with high density residential in the downtown area.
Total revenues from the City’s Sewer Enterprise increased $2.0 million, or 6.3% to $33.8
million from $31.8 million in the prior year due mainly to greater contributions from other
cities to which the City of South San Francisco’s WQCP provides services. The City’s Parking
Enterprise experienced a $0.3 million, or 32.0%, decrease in revenues to $0.8 million in
FY2020-21 compared to $1.1 million in the prior year due to reduced parking activity caused
by mandated restrictions put in place in response to the COVID-19 pandemic.
7
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
OVERVIEW OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT
This Annual Comprehensive Financial Report (ACFR) is in six parts:
1)The Introductory Section, which includes the Transmittal Letter and general information;
2) Management’s Discussion and Analysis (this part);
3)The Basic Financial Statements, which include the Government-wide and the Fund
Financial Statements, along with the notes accompanying these statements;
4) Required Supplementary Information and the accompanying notes;
5)Other Supplementary Information including combining statements for non-major
governmental funds, internal service funds, 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 of the City’s programs. The Statement of Activities provides a detailed
explanation of the change in net position for the year.
All the amounts in the Statement of Net Position and the Statement of Activities are separated into
Governmental Activities and Business-type Activities in order to provide a summary of these two
distinct activities of the City.
The Fund Financial Statements report the City’s operations in more detail than the government-
wide statements. The Governmental Fund Financial Statements focus primarily on the short-term
activities of the City’s General Fund and other Major Funds and measure only current revenues,
expenditures, and fund balances; they exclude capital assets, long-term debt and other long-term
amounts. The Proprietary Fund Financial Statements focus on the Business-Type “enterprises” of
the City, i.e. activities that are accounted for in a similar way to private sector organizations using
the full accrual basis, thereby including both short-term and long-term elements.
8
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Major Funds account for the major financial activities of the City and are presented individually,
while the activities of non-Major funds are presented in summary, with subordinate schedules
presenting the detail for each of these other funds.
The Fiduciary Fund Financial Statements provide financial information about the activities of
Non-Obligated Assessment Districts, for which the City acts solely as agent.
Note 1 to the Basic Financial Statements provides a summary of the City’s significant accounting
policies, fund categories, and fund types.
City-wide Financial Statements
The Statement of Net Position and the Statement of Activities present information about the
following:
Governmental activities - All of the City’s basic services are considered to be governmental
activities, including General Government, Fire, Public Works, Parks and Recreation, Library,
and Economic and Community Development. These services are supported by general City
revenues such as taxes and by specific program revenues from grants, contributions and fees.
The City’s Governmental Activities also include the City of South San Francisco Capital
Improvements Financing Authority and South San Francisco Public Facilities Financing
Authority, as the City Council also governs these entities.
Business-Type Activities - All the City’s enterprise activities are reported here, including
Wastewater treatment (or Sewer), Parking, and Storm Water management. Unlike
Governmental services, user fees fully support most of these services.
Component Unit - The City of South San Francisco Conference Center Authority comprises
the component unit. The Authority serves the City and other interests and it has a governing
body separate from the City Council.
City-wide financial statements are prepared on the accrual basis, which means they measure the
flow of all economic resources of the City as a whole and account for revenues when due and
expenses when incurred.
9
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Fund Financial Statements
The Fund Financial Statements provide detailed information about each of the City’s most
significant funds, called Major Funds. Each Major Fund is presented individually, with all non-
Major Funds summarized and presented only in a single column. Subordinate schedules present
the detail of these non-Major funds. Major Funds present the major activities of the City for the
year and may change from year to year as a result of changes in the pattern of City activities. Fund
Financial Statements include governmental, enterprise and internal service funds as discussed
below.
Governmental Fund Financial Statements are prepared on the modified accrual basis, which mean
they measure only current financial resources and uses. Capital assets and other long-lived assets,
along with long-term liabilities, are not presented in the Governmental Fund Financial Statements.
Enterprise and Internal Service Fund Financial Statements are prepared on the full accrual basis
and include all their assets, liabilities and deferred outflows/inflows of resources, current and long-
term.
Since the City’s Internal Service Funds provide goods and services only to the City’s governmental
and business-type activities, their activities are reported only in total at the fund level. Internal
Service Funds may not be Major Funds because their revenues are derived from other City funds.
These revenues are eliminated in the city-wide financial statements and any related profits or
losses are returned to the activities which created them, along with any residual net position of the
Internal Service Funds.
Comparisons of Budget and Actual financial information are required in the Basic Financial
Statements only for the General Fund and other Major Funds that are Special Revenue Funds.
Fiduciary Fund Financial Statements
The City is the agent for certain assessment districts, holding amounts collected from property
owners which await transfer to these Districts’ bond trustees. The City’s fiduciary activities are
reported in the separate Statement of Fiduciary Net Position and the Statement of Changes in
Fiduciary Net Position. These activities are excluded from the City’s other financial statements
because the City cannot use these assets to finance its own operations.
FINANCIAL ACTIVITIES OF THE CITY AS A WHOLE
The following analyses focus on the net position and changes in the City’s Governmental
Activities (Tables 1 through 3, and Chart 1) and Business-Type Activities (Tables 4 and 5), which
are presented in the city-wide Statement of Net Position and Statement of Activities. The
comparative results for FY 2020-21 are presented versus FY 2019-20.
10
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Governmental Activities
Net position may serve over time as a useful indicator of the City’s financial condition. Table 1
below shows that total assets and deferred outflows of resources exceed the total liabilities and
deferred inflows of resources as of June 30, 2021 for Governmental Activities:
Governmental Net Position
Table 1
Governmental Net Position at June 30
(In Millions)
The total net position for Governmental Activities increased by $27.4 million in FY 2020-21
compared to the prior year, reflecting significant increases in assets as shown in table 1. Cash and
investments increased by $9.5 million. Other assets, which includes receivables, properties held
for redevelopment and restricted cash and investments, increased by $58.2 million due to
additional proceeds received from issuance of a new bond for construction of the new Civic Center
Campus. Capital assets increased by $81.6 million due to a large increase in Construction-In-
Progress related to the new Police Station and other Capital Improvement Plan projects. Pursuant
to GASB 75 and GASB 68 requirements, respectively, the City, as in prior years, recognized the
Net OPEB liability of $57.9 million and Net Pension Liability of $184.8 million attributable to
Governmental Activities.
Increase / (Decrease)
2021 2020 Amount %
Cash and investments 229.1$ 219.6$ 9.5$ 4.3%
Other assets 148.7 90.5 58.2 64.3%
Capital assets 383.1 301.5 81.6 27.1%
Total assets 760.9 611.6 149.3 24.4%
Total outflows of resources 31.2 29.4 1.8 6.1%
Total outflow of resources 31.2 29.4 1.8 6.1%
Long‐term debt outstanding 157.5 56.8 100.7 177.3%
Other liabilities 301.0 276.3 24.7 8.9%
Total liabilities 458.5 333.1 125.4 37.6%
Deferred inflows of resources 1.6 3.2 (1.6) (50.0%)
Total deferred inflow of resources 1.6 3.2 (1.6) (50.0%)
Net position:
Net investment in capital assets 316.1 296.2 19.9 6.7%
Restricted 160.2 138.7 21.5 15.5%
Unrestricted (144.2) (130.2) (14.0) 10.8%
Total net position 332.1$ 304.7$ 27.4$ 9.0%
11
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
Expense and Program Revenue Comparison in Governmental Activities
(In Millions)
Increase / (Decrease)
2021 2020 Amount %
Revenues
Program revenues:
Charges for services 44.9$ 48.8$ (3.9)$ (8.0%)
Operating grants and contributions 8.0 8.8 (0.8) (9.1%)
Capital grants and contributions 5.5 4.9 0.6 12.2%
Total program revenues 58.4$ 62.5$ (4.1)$ (6.6%)
General revenues:
Taxes:
Property taxes 41.6$ 37.4$ 4.2$ 11.2%
Sales taxes 33.0 31.8 1.2 3.8%
Transient occupancy taxes 6.7 13.8 (7.1) (51.4%)
Other taxes 9.1 9.1 0.0 0.0%
Property taxes in l ieu 4.9 7.5 (2.6) (34.7%)
Investment earnings 0.9 6.4 (5.5) (85.9%)
Miscellaneous 11.6 9.2 2.4 26.1%
Total general revenues 107.8$ 115.2$ (7.4)$ (6.4%)
Total revenues 166.2$ 177.7$ (11.5)$ (6.5%)
Expenses
General government 19.6$ 15.4$ 4.2$ 27.3%
Fire department 34.5 34.5 0.0 0.0%
Police department 33.4 36.1 (2.7) (7.5%)
Public Works 7.6 17.7 (10.1) (57.1%)
Parks and Recreation 17.1 19.6 (2.5) (12.8%)
Library 6.3 6.7 (0.4) (6.0%)
Economic and Community Development 11.7 9.8 1.9 19.4%
Interest on long‐term debt 2.2 0.5 1.7 340.0%
Total expenses 132.4$ 140.3$ (7.9)$ (5.6%)
Excess / (deficiency) before transfers 33.8$ 37.4$ (3.6)$ (9.6%)
Special Item (1.4) 0.3 (1.7) (618.5%)
Transfers (5.0) (8.1) 3.1 (38.3%)
Change in net position 27.4 29.6 (2.2) (7.3%)
Net position ‐ beginning 304.7 275.1 29.6 10.8%
Net position ‐ ending 332.1$ 304.7$ 27.4$ 9.0%
12
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
As shown in table 2, total Governmental revenues (excluding transfers and special items)
decreased by $11.5 million compared to the prior year, primarily due to COVID-19-related
impacts on TOT which accounts for more than half ($7.1 million) of the total reduction in revenue.
A decrease was also seen in Property taxes in lieu ($2.6 million), otherwise known as the California
Vehicle Licensing Fee (VLF) – all cities across San Mateo County experienced a shortfall in this
category in FY 2020-21 due to a change in the ratio of basic aid to non-basic aid school districts
in the county which affects the availability of VLF. Investment earnings also reduced by $5.5
million to $0.9 million due to the mark-to-market adjustment required by Governmental
Accounting Standards Board (GASB) accounting standard #31. These reductions were partially
offset by $4.2 million and $1.2 million respective increases in property tax and sales tax. These
increases were due to a continued upward trend in property prices despite the pandemic and
recovering activity in the local economy.
Chart 1 shows the distribution of revenues from Governmental Activities by category.
Governmental program expenses decreased by $8.0 million in comparison to the prior year. This
is primarily due to a significantly greater adjustment for capital assets during FY 2020-21
particularly with respect to construction in progress of the new Police Station and Civic Center
Campus. There were also savings in some General Fund departments including Public Works,
Parks and Recreation, and Economic and Community Development which contributed to the
reduction in overall Government program expenses.
Chart 1
Revenues by Source - Governmental Activities FY 2020-21
13
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Table 3 illustrates the difference between program revenues and program expenses. Program
revenues consist of capital and operating grants and contributions, and fees for services. General
City revenues, such as property taxes, sales taxes, transient occupancy taxes, licenses and permits,
and investment earnings, cover the shortfall between program revenues and program expenses.
Table 3
Net (Expense) / Revenue from Services
Governmental Activities
(In Millions)
In FY 2020-21, the net expense for governmental activities decreased by $3.9 million from $77.9
million to $74.0 million, due to $8.0 million in reductions in Governmental program expenses, as
previously discussed, and a $4.1 million reduction in program revenues primarily in capital grants
and contributions.
Increase / (Decrease)
2021 2020 Amount %
General government (9.8)$ (9.2)$ (0.6)$ 6.5%
Fire department (28.3) (28.4) 0.1 (0.4%)
Police department (31.0) (33.3) 2.3 (6.9%)
Public works department 21.4 15.7 5.7 36.3%
Recreation and community services (15.3) (16.0) 0.7 (4.4%)
Library (2.0) (5.9) 3.9 (66.1%)
Economic and community development (6.8) (0.3) (6.5) 2166.7%
Interest on long‐term debt (2.2) (0.5) (1.7) 340.0%
Total (74.0)$ (77.9)$ 3.9$ (5.0%)
14
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Business-Type Activities
Table 4 shows that total assets and deferred outflows of resources exceed the total liabilities and
deferred inflows of resources as of June 30, 2021 for Business-Type Activities:
Table 4
Business-type Net Position at June 30 (in Millions)
The total net position for Business-Type Activities increased by $16.8 million compared to the
prior year. Total assets increased by $29.2 million, or 14.9%, reflecting increases of capital assets
related to construction in the WQCP Wet Weather and Digester Improvements Project and other
sewer-related projects. However, total liabilities increased by $12.7 million due to drawdowns of
$15.0 million on the 2018 Clean Water State Revolving Fund and partially offset by debt service
payments on the other outstanding loans. Similar to Governmental Activities and pursuant to
GASB 75 and GASB 68 requirements, respectively, the City, as in prior years, recognized the Net
OPEB liability of $6.4 million and Net Pension Liability of $20.5 million attributable to Business-
Type Activities.
Increase / (Decrease)
2021 2020 Amount %
Cash and Investments 30.2$ 27.3$ 2.9$ 10.6%
Other assets 8.3 3.6 4.7 130.6%
Capital assets 186.4 164.8 21.6 13.1%
Total assets 224.9 195.7 29.2 14.9%
Deferred outflows related to pension/OPEB 3.4 3.3 0.1 3.0%
Total Deferred outflow of resources 3.4 3.3 0.1 3.0%
Long‐term liabilities outstanding 57.6 47.8 9.8 20.5%
Other liabilities 39.7 36.8 2.9 7.9%
Total liabilities 97.3 84.6 12.7 15.0%
Deferred inflows related to pension/OPEB 0.2 0.4 (0.2) (50.0%)
Total deferred inflow of resources 0.2 0.4 (0.2) (50.0%)
Net position:
Net investment in capital assets 123.6 112.0 11.6 10.4%
Restricted 0.0 0.0 0.0 0.0%
Unrestricted 7.2 2.0 5.2 100.0%
Total net position 130.8$ 114.0$ 16.8$ 14.7%
15
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 Activities Net Position
(In Millions)
Expenses from Business-Type Activities in FY2020-21 increased marginally by $0.4 million to
$28.9 million while total revenues increased by $6.7 million to $40.7 million giving rise to a
change in net position of $16.8 million after transfers compared to the $13.5 million change in net
position in the prior year. This $16.8 million change was primarily attributable to increases in
operating grants and contributions which more than offset the reduction in transfers in from other
funds.
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
Governmental Funds
Governmental funds highlight the City’s near-term inflows, outflows, and balances of spendable
resources. Such information can be helpful in determining the City’s financial condition.
Unrestricted fund balance is a major indicator of designated and uncommitted resources available
for spending in future fiscal years.
Increase / (Decrease)
2021 2020 Amount %
Expenses
Sewer Enterprise 26.7$ 26.2$ 0.5$ 1.9%
Parking District 1.3 1.1 0.2 18.2%
Storm Water 0.9 1.2 (0.3) (25.0%)
Total expenses 28.9 28.5 0.4 1.4%
Revenues
Program Revenues
Charges for Services 25.8 25.7 0.1 0.4%
Operating grants and contributions 14.8 7.4 7.4 100.0%
Total program revenues 40.6 33.1 7.5 22.7%
General revenues
Investment earnings 0.1 0.8 (0.8) (93.8%)
Total general revenues 0.1 0.8 (0.8) (93.8%)
Excess (deficiency) before transfers 11.8 5.4 6.4 117.6%
Transfers 5.0 8.1 (3.1) (38.3%)
Change in net position 16.8 13.5 3.3 24.1%
Net position ‐ beginning (as adjusted) 114.0 100.5 13.5 13.4%
Net position ‐ ending 130.8$ 114.0$ 16.8$ 14.7%
16
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
At June 30, 2021, the City’s Governmental Funds reported combined fund balances of $310.1
million, an increase of $55.2 million, or 21.7%, compared to the prior year. The General Fund
ending fund balance, which includes Measure W, was $75.7 million, reflecting a decrease of $9.4
million, or 11.0% primarily due to allocation of Measure W funds towards construction of the new
Police Station.
Total Governmental Fund revenues (excluding transfers and special items) decreased by $10.3
million, or 5.9%, from $176.5 million to $166.2 million, with significant decreases in TOT, interest
and rentals, and charges for services, all as a direct result of the negative economic impacts of the
COVID-19 pandemic.
Total Governmental Fund expenditures (excluding transfers and special items) increased by $53.4
million or 35.0%, from $152.7 million to $206.1 million, primarily stemming from increased
project expenditures for the new Police station and new community Civic Center Campus, the
latter paid for by issuance of a new bond in FY2020-21. In addition, the City’s personnel costs for
salaries and benefits increased in accordance with negotiated Memorandums of Understanding
and general increases in healthcare costs. These were somewhat offset by departmental savings
in other areas.
Comparison of General Fund Final Budgets to Original Adopted Budget
The budget is initially adopted by the City Council in June, based on revenue projections that are
up to date through May. Between May and the end of the fiscal year, there can be major
fluctuations in revenues depending on the economy and/or actions by the State of California. There
can also be significant changes to departmental expenditure budgets to the extent unforeseen
expenditures occur. In the Fund Financial Statements, the page titled “Statement of Revenues,
Expenditures, and Changes in Fund Balances Budget and Actual” later in this document shows
the initial adopted and final budgets for the General Fund (including Measure W). Changes
between the adopted and final budgets are shown and explained in table 6:
17
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Table 6
Comparison of General Fund (excluding transfers) Final Budgets to Original Adopted
Budget (in Thousands)
Original Final Pct Discussion:
Revenues Budget Budget Change Change (Items of more than 5% and $100,000 variance)
Property taxes 41,596$ 43,052$ 1,456$ 3.5%
Sales taxes 29,608 31,208 1,600 5.4%
Sales tax collections proved to be stronger than originally
expected - City's sales tax consultant projections indicated
higher revenue for the year leading to upward revision
Transient occupancy taxes 7,873 5,904 (1,969) -25.0%
Travel industry continued to be severely impacted by
COVID-19 pandemic further into the year than originally
expected leading to downward budget revision
Other taxes 3,118 3,118 -
Franchise Fee 4,600 4,600 -
Intergovernmental 2,223 3,261 1,038 46.7%
Reflects $838k COVID-19 pandemic-related CARES Act
federal award to the City, fire and COVID-19-related
FEMA reimbursements and various other federal, state
and local grants applied for during the year
Interest and rentals 3,828 3,828 -
Licenses and permits 14,995 14,995 -
Charges for services 8,012 7,062 (950) -11.9%
COVID-19 pandemic proved more impactful on various
Parks & Recreation services including child care, picnic
rentals, and classes and events
Fines and forfeitures 789 789 -
Other 175 175 -
Total 116,817$ 117,992$ 1,175$ 1.0%
Original Final Pct Discussion:
Expenditures Budget Budget Change Change (Items of more than 5% and $100,000 variance)
City Council 285$ 285$ -$
City Clerk 1,097 1,097 -
City Treasurer 145 145 -
C ity Attorney 910 910 -
City Manager 2,163 5,460 3,297 152.4%
General Plan update work, Commission on Racial &
Social Equity, East of 101 Community Facilitites District
work and increased part-time support staff
Finance 3,239 3,640 401 12.4%
Accounts for various purchase orders carried over from the
previous FY, funds for Financial Analyst II position and
revenue consultant
Non-Departmental 1,044 1,737 693 66.4% Various programs funded by CARES Act federal award
Human Resources 1,780 2,031 251 14.1%
Accounts for carryover purchase orders, Summer Jobs for
Youth (internship) program, and personnel and payroll
system (PDS) automation
Economic and Community
Development 7,206 9,607 2,401 33.3%
Accounts for various purchase orders carried over from the
previous year for plan review and building inspection
services, and General Plan work
Fire 29,978 31,010 1,032 3.4%
Police 31,882 32,020 138 0.4%
Public Works 5,774 5,857 83 1.4%
Library 6,048 6,246 198 3.3%
Parks and Recreation 15,655 16,024 369 2.4%
Total 107,206$ 116,069$ 8,863$ 8.3%
18
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Analysis of Major Governmental Funds
General Fund
In FY 2020-21, total General Fund revenues, excluding transfers in, were $123.5 million which
was $5.5 million, or 4.7% higher than the final amended budget. Total General Fund expenditures,
excluding transfers out, ended FY 2020-21 at $108.9 million which was $7.2 million, or 6.2%,
lower than final budget due to savings realized in multiple departments.
As of June 30, 2021, the General Fund total fund balance was $75.7 million, $7.9 million of which
was attributable to Measure W. Of the remaining fund balance, $21.8 million was held in reserve
in accordance with city policy which is aligned with the Governmental Finance Officers
Association (GFOA) recommended reserve practice of between 15-20 percent of General Fund
operating revenue. The remaining $46.0 million was held in designation/reserve accounts for
various purposes including unassigned fund balance (available for operational use), encumbrances
(committed expenditure items), capital projects and land held for development. The unassigned
reserves are designated by the City Council based on the City’s Reserves Policy and include funds
for economic contingencies, potential catastrophe and budget contingencies.
Revenues. Property tax collections in FY 2020-21 were $44.2 million, which was $1.2 million or
2.8% over final budget. This was mainly due to higher than expected increases in assessed values
and new properties added to the tax roll despite the COVID-19 pandemic.
Sales tax revenue, including Measure W, was $32.7 million, which was $1.5 million or 4.9% over
final budget, proving much more resilient through the pandemic than originally expected, and
reflecting a rebound in the local economy as restrictions eased as the fiscal year progressed.
Transient occupancy taxes came in at $6.7 million, which was $0.8 million or 13.7% over final
budget. This category was budgeted very conservatively due to the severe impact of the pandemic
on the hospitality industry seen in Q4 of FY2019-20. As vaccination rates increased during
FY2020-21 and restrictions eased, TOT collections began to improve giving rise to final
collections higher than budget. By way of contrast, pre-pandemic TOT levels were approximately
$17 million (FY2018-19).
Intergovernmental revenues were $4.3 million, $1.1 million, or 32.6%, higher than final budget
mainly due to greater than expected reimbursements from the California Office of Emergency
Services for fire-related activities.
Licenses and permits revenues were $15.6 million, which was $0.6 million or 4.0% over final
budget. The continued strong demand for licenses and permits was primarily attributable to non-
residential and bio-tech development in the East of 101 area and high density residential
development in the downtown area.
19
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Charges for services was $6.5 million, which was $0.5 million or 7.7% below budget, due to the
continued negative impacts of the pandemic with respect to classes and events, child care services
and rentals.
Measure W revenue increased by $1.7 million, or 14.5%, from $11.7 million in FY2019-20 to
$13.4 million in FY 2020-21 largely due to the improving local economy as COVID-19 restrictions
eased during the course of the year enabling spending patterns of city residents to return to more
normal levels.
Expenditures. Higher than expected expenditures for the City Manager’s Office is due to
professional services related to updating the City’s General Plan, and the Fire Department as a
result of additional overtime costs related to wildfire and COVID-19 emergency response
activities. Much of this was offset by savings in other departments. Compared to the prior year,
General Fund expenditures, excluding transfers, increased slightly from $113.4 million to $114.5
million (including encumbrances), driven by a return to a more normal level of services during the
year as the city opened up following easing of COVID-19-related restrictions, but yielded a $1.6
million positive variance versus final budget.
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 Housing Successor Agency, with activities funded primarily from the rental
revenues received by the City for those City-owned occupied housing units. Any shortfall between
the rents received and the operations and maintenance costs of those housing units are funded by
either one-time grants or by the General Fund. Any fund balances will be held for future housing
property maintenance needs.
As of June 30, 2021, the fund balance was $3.2 million, a reduction from $6 million at the end of
the prior year. In FY 2020-21, the City Housing Fund received $0.2 million in revenues. The fund
had $3.0 million in expenditures, $2.5 million of which was for a developer loan for the
development of below market rate housing units at 201-219 Grand Avenue, $0.2 million for rental
assistance to households severely impacted by the COVID-19 pandemic, and the remainder for
administrative staff costs to support the City’s Housing Division.
Capital Improvement Funds
The City consolidates and reports its governmental fund-type capital project expenditures in these
funds. Resources consist of transfers from the General Fund, Major and non-Major funds,
developer impact fees, and gasoline taxes and transportation sales taxes from non-Major
governmental funds.
20
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Resources also come from federal, state, and local grants, contributions from other cities, utilities
and private developers. From time to time and when financially feasible and prudent to do so, the
City issues bonds which generate proceeds for large-scale public facility projects. In addition to
the bond issuance in FY2019-20 for the new Police station, the City issued $86.4 million in bonds
to fund the construction of the new Civic Center Campus, installation of a solar roof at the City’s
Corporation Yard and for the City’s Road Rehabilitation Program. Entire capital projects are
appropriated in one-year, but expended over multiple years, with unspent appropriations carried
forward year-to-year until completion. In FY 2020-21, combined ending fund balance for Capital
Improvement Funds (excluding Impact Fee Funds) was $136.9 million which increased $60.7
million from the combined ending fund balance of $76.2 million in the prior year. The increase
was due to the issuance of the Civic Center Campus Phase II bonds which generated $104 million
in proceeds. This increase to fund balance was partially offset by approximately $40 million of
construction-related expenditures for the new police station during the year and $3 million in
transfers out to fund street-related capital projects from the Capital Infrastructure Reserve Fund.
Developer Impact Fees
To ensure developers pay their fair share of the impact of new developments on the City’s capital
and infrastructure, the City imposes impact fees. Despite the COVID-19 pandemic, in FY2020-
21, South San Francisco continued to experience a robust development environment that
accounted for significant collection of developer impact fees and interest earned including $0.5
million in East of 101 Sewer Impact Fees to be used to maintain the sewer collection and treatment
facilities serving the east of 101 area. This fund experienced an overall $1.3 million decrease in
fund balance from $5.4 million to $4.1 million due to the transfers out to fund those capital
projects.
Park Construction Impact Fees received amounted to $3.1 million which is to be used for the
improvements and construction of City park facilities. After transfers out to fund these capital
projects, fund balance ended at $5.3 million, an increase from $2.3 million in the prior year.
Commercial Linkage Impact Fees received were $5.4 million which is to be used to provide
affordable housing and to support the City’s adopted 2015-2023 Housing Element. After transfers
out to fund these projects, fund balance rose to $10.2 million in FY 2020-21 from $8.0 million in
the prior year.
In FY 2020-21, the City also received $2 million in Traffic Impact Fees to be used for expanded
roadway and intersection improvements serving the east of 101 area, $0.6 million in Child Care
Impact Fees to be used for new and expanded childcare facilities in the City, $0.2 million in Public
Safety Impact Fees to be used for new and expanded public safety capital facility projects and
equipment, $0.8 million in Park Land Acquisition Fees to be used to acquire land for parks within
the City, and $8.9 million in Oyster Point Development Impact Fees to be used for interchange
projects in the Oyster Point area.
21
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
Other Governmental Funds
Presented as a group in the Basic Financial Statements, these funds are individually presented as
Supplementary Information.
Enterprise Funds
Sewer Enterprise Fund
The Sewer Enterprise fund reported operating revenue (before non-operating revenues and
operating transfers) of $33.8 million in FY2020-21, an increase of $2.7 million, or 8.6%, from
$31.2 million in the prior year, reflecting an increase in the amount contributed by other cities
receiving wastewater treatment services from the City of South San Francisco’s Wastewater
Quality Control Plant (WQCP). Operating expenses increased $0.6 million, or 2.0%, from $ 25.5
million to $26.1 million, reflecting the impact of increases in employee compensation along with
slight increases in normal expenses like professional services and supplies.
Parking District Fund
In FY 2020-21, the Parking District fund reported an operating loss (before non-operating
revenues and operating transfers) of $0.6 million which was an increase on the loss seen in the
prior year of $0.2 million. Operating revenues decreased by $0.2 million, or 20.0%, from $1.0
million to $0.8 million, primarily due to reduced usage of parking meters during the first half of
the year when COVID-19-related restrictions remained in force. Operating expenses increased by
$0.2 million, or 19.6% from $1.1 million to $1.3 million due to higher personnel costs and
professional services expenses.
Storm Water Fund
The Storm Water Fund is used to account for resources needed to fund storm drain and storm
infrastructure operations, maintenance, capital replacement, and compliance with various federal
and state regulations regarding storm water runoff. Revenues totaled $0.4 million, which is flat
compared to the prior year, primarily from a levy on property owners. Transfers in from other
funds totaled $0.9 million - $0.2 million from the General Fund and $0.7 million from non-Major
Governmental Funds. A one-off grant receivable for $5.7 million was recorded in the year related
to the Orange Memorial Park storm water capture CIP project. Operating expenses in this fund
totaled $0.9 million, down $0.3 million, or 24.0%, from $1.2 million in the prior year. Net position
increased $6.1 million from $5.4 million to $11.5 million, largely due to the grant received.
22
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
CAPITAL ASSETS
Generally accepted accounting principles require the City to add infrastructure to its reportable
capital assets. Infrastructure includes streets, drainage systems, and traffic control and safety
devices. The City has successfully reported on the depreciated value of all such assets acquired or
built since 1980. The City reports the depreciated book value of other types of capital assets such
as buildings, land, equipment and furniture, on the City-wide Statement of Net Position. Such
information is summarized below and is more completely detailed in Note 3 to the Basic Financial
Statements. The City depreciates all of its capital assets, except land and construction in progress.
At June 30, 2021, the City had $569.5 million in capital assets, net of depreciation, representing a
substantial increase of $103.2 million from the prior year, driven primarily by in progress
construction projects such as the new Police station.
The City’s various capital asset types used in Governmental and Business-Type Activities, are
illustrated in Table 7:
Table 7
Capital Assets (in Millions) at June 30
2021 2020 Amount %
Governmental Activities:
Land 66.7$ 66.7$ ‐$ 0.0%
Buildings and improvements 97.4 96.3 1.1 1.1%
Equipment and vehicles 24.5 24.4 0.1 0.4%
Furniture and fixtures 2.6 2.6 0.0 0.0%
Infrastructure ‐ streets 200.9 200.1 0.8 0.4%
Infrastructure ‐ traffic control devices 12.6 12.6 0.0 0.0%
Infrastructure ‐ storm drains 8.9 8.9 0.0 0.0%
Construction in progress 160.4 71.4 89.0 124.6%
Less accumulated depreciation (190.9) (181.5) (9.4) 5.2%
Totals 383.1$ 301.5$ 81.6$ 27.1%
Business‐Type Activities
Land 0.8$ 0.8$ ‐$ 0.0%
Buildings and improvements 80.1 67.1 13.0 19.4%
Clean water facilities and transmission line 79.9 79.9 0.0 0.0%
Infrastructure ‐ storm drains 6.2 6.2 0.0 0.0%
Infrastructure ‐ streets 7.4 7.3 0.1 1.4%
Equipment and vehicles 18.5 18.5 0.0 0.0%
Construction in progress 68.9 55.4 13.5 24.4%
Less accumulated depreciation (75.4) (70.4) (5.0) 7.1%
Totals 186.4$ 164.8$ 21.6$ 13.1%
Total City 569.5$ 466.3$ 103.2$ 22.1%
23
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 shown in table 8
(excluding unamortized bond premiums):
Table 8
Outstanding Debt
(In Millions) at June 30
In June 2021, the City of South San Francisco Public Facilities Financing Authority issued $86.4
million in lease revenue bonds, Series 2021A, for the construction of the new Civic Center Campus,
installation of a solar roof at the City’s Corporation Yard, and expansion and implementation of
the City’s Road Rehabilitation Program. The City received a total of $104 million in proceeds
from this issuance, of which $78 million, $2 million and $24 million was allocated to the three
projects respectively.
The increase of $10.0 million in Business-Type Activities outstanding debt stems from the
drawdown of an additional $15.0 million State Water Resources Board loan and the retirement of
$5.0 million during FY 2020-21.
The largest remaining debt obligations are the following:
-1999, 2004, 2008 State Water Resources Control Board Loans – Original debt:
$78.144.286; 2.4% to 2.6% interest rate; due 8/1/22, 4/30/26, 7/15/28. These loans
were used to improve and expand the City’s Water Quality Control Plant (WQCP).
Loan proceeds were issued as projects progressed. Debt service payment commenced
one year after project completion. WQCP user fees support the debt service payments.
Because of the regional benefits and equity interest in these projects, the City of San
Bruno shares in the loan repayments for the first two of the four current loans.
Increase / (Decrease)
Governmental Activities 2021 2020 Amount %
Lease Revenue Bonds 129.4$ 43.9$ 85.5$ 100.0%
Plus: Unamortized Bond Premium 27.6 9.9 17.7 100.0%
Loan payable to Successor Agency 3.6 3.6 0.0 0.0%
Capital leases 0.3 0.5 (0.2) (40.0%)
Total Governmental Activities Outstanding Debt 160.9$ 57.9$ 103.0$ 177.9%
Business‐type Activities
State Water Resources Board loans 60.5$ 50.1$ 10.4$ 20.8%
2005 Sewer Bonds 2.3 2.7 (0.4) (14.8%)
Total Business‐type Activities Outstanding Debt 62.8$ 52.8$ 10.0$ 18.9%
24
CITY OF SOUTH SAN FRANCISCO
MANAGEMENT’S DISCUSSION AND ANALYSIS
Required Supplementary Information
-2018 State Water Resources Control Board Loan - Original debt: $53,403,000; 1.8%
interest rate; due October 3, 2042. The loan proceeds are being used for the WQCP
Wet Weather and Digester project. Loan proceeds have been issued over time as
projects progressed. Debt service payments are due to commence on October 3, 2023,
one year after project completion. WQCP user fees support the debt service payments.
-2020A Lease Revenue Bonds - Original debt: $43,905,000; premium received:
$10,242,530; 4 - 5% interest rate; due June 1, 2046. The bonds were used for Phase I
of the Civic Center Campus project consisting of the planning and construction of a
new Police Station and Dispatch Center for the City of South San Francisco. Measure
W sales tax revenue will fund the repayments.
-2021A Lease Revenue Bonds - Original debt: $86,410,000; premium received:
$18,116,565; 4% interest rate; due June 1, 2046. $78,000,000 of the bond proceeds
are to be used for Phase II of the Civic Center Campus project consisting of the design
and construction of the new library, parks and recreation center, council chambers
and landscaping of the immediate surrounding area. $24,000,000 will be used for road
pavement rehabilitation throughout the City, and $2,000,000 will be used for solar
roof installation at the City's Corporation Yard. Measure W sales tax revenue will
fund the repayments.
ECONOMIC OUTLOOK AND MAJOR ACCOMPLISHMENTS
The economic outlook and major accomplishments of the City are discussed in the accompanying
Transmittal Letter.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This Annual Comprehensive Financial Report is intended to provide readers with a general
overview of the City’s finances. Questions about this report or requests for additional financial
information should be 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.
25
This Page Left Intentionally Blank
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF NET POSITION AND
STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the entire City’s financial
activities and financial position.
The Statement of Net Position reports the excess of the City’s total assets and deferred outflows of
resources over the City’s total liabilities and deferred inflows of resources, including all the City’s capital
assets and all its long-term debt. The Statement of Net Position focuses the reader on the composition of
the City’s net position, by subtracting total liabilities and deferred inflows of resources from total assets
and deferred outflows of resources.
The Statement of Net Position summarizes the financial position of all the City’s Governmental Activities
in a single column, and the financial position of all the City’s Business-Type Activities in a single
column; these columns are followed by a total column which presents the financial position of the entire
City.
The City’s Governmental Activities include the activities of its General Fund, along with all its Special
Revenue, Capital Projects and Debt Service Funds. Since the City’s Internal Service Funds service these
Funds, their activities are consolidated with Governmental Activities, after eliminating inter-fund
transactions and balances. The City’s Business Type Activities include all its Enterprise Fund activities.
The Statement of Activities reports increases and decreases in the City’s net position. It is also prepared
on the full accrual basis, which means it includes all the City’s revenues and all its expenses, regardless of
when cash changes hands. This differs from the “modified accrual” basis used in the Fund financial
statements, which reflect only current assets, current liabilities, available revenues and measurable
expenditures.
The Statement of Activities presents the City’s expenses first, listed by program, and follow these with
the expenses of its business-type activities. Program revenues—that is, revenues which are generated
directly by these programs—are then deducted from program expenses to arrive at the net expense of each
governmental and business-type program. The City’s general revenues are then listed in the
Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net
Position is computed and reconciled with the Statement of Net Position.
Both these Statements include the financial activities of the City, the City of South San Francisco Capital
Improvements Financing Authority, the Parking Authority of the City of South San Francisco and the
City of South San Francisco Public Facilities Financing Authority that are legally separate but are
component units of the City because they are controlled by the City, which is financially accountable for
the activities. Data for the South San Francisco Conference Center Authority is reflected as a discretely
presented component unit of the City. This data is presented separately from other funds of the City to
reflect operations under control of a governing body with a voting majority which is different from the
City Council.
27
This Page Left Intentionally Blank
Component Unit
Primary Government South San Francisco
Governmental Business-Type Conference
Activities Activities Total Center
ASSETS
Cash and investments (Note 2)$229,061,652 $30,244,358 $259,306,010 $3,322,418
Receivables:
Accounts 13,502,034 7,777,434 21,279,468 211,818
Accrued interest 606,062 71,491 677,553
Loans 1,419,000 1,419,000
Due from Conference Center 62,516 62,516
Deposits 309,790 309,790 20,805
Inventory 4,099 4,099
Restricted cash and investments (Note 2)116,473,585 339,031 116,812,616
Properties held for redevelopment (Note 1N)16,354,141 16,354,141
Capital assets (Note 3):
Nondepreciable 227,105,870 69,727,000 296,832,870
Depreciable, net accumulated depreciation 156,018,402 116,707,401 272,725,803 2,537,986
Total Assets 760,917,151 224,866,715 985,783,866 6,093,027
DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 7)25,259,482 2,806,609 28,066,091
Related to OPEB (Note 9)5,948,833 660,981 6,609,814
Total Deferred Outflows of Resources 31,208,315 3,467,590 34,675,905
LIABILITIES
Accounts payable 10,634,035 4,468,179 15,102,214 174,980
Accrued salaries and benefits 2,835,241 2,835,241 57,771
Accrued interest payable 424,820 304,993 729,813
Other payables 6,415,191 1,860,397 8,275,588
Deposits 3,541,257 7,500 3,548,757 258,386
Unearned revenue 6,260,975 33,027 6,294,002
Accrued insurance losses (Note 11):
Due within one year 2,878,797 2,878,797
Due in more than one year 12,871,000 12,871,000
Compensated absences obligation (Note 1L):
Due within one year 4,612,735 522,162 5,134,897
Due in more than one year 4,422,038 354,833 4,776,871
Debt and capital lease obligations (Note 5):
Due within one year 3,330,892 5,173,954 8,504,846
Due in more than one year 157,530,178 57,631,505 215,161,683
Net OPEB Liability - due in more than one year (Note 9)57,935,336 6,437,260 64,372,596
Net pension liability - due in more than one year (Note 7)184,769,905 20,529,990 205,299,895
Total Liabilities 458,462,400 97,323,800 555,786,200 491,137
DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 7)136,968 15,219 152,187
Related to OPEB (Note 9)1,418,330 157,592 1,575,922
Total Deferred Inflows of Resources 1,555,298 172,811 1,728,109
NET POSITION (Note 6)
Net investment in capital assets 316,169,957 123,628,942 439,798,899 2,537,986
Restricted for:
Debt service
Special revenue projects 35,439,592 35,439,592
Capital projects 108,325,323 108,325,323
Redevelopment and community development activities 16,354,141 16,354,141
Total Restricted Net Position 160,119,056 160,119,056
Unrestricted (144,181,245)7,208,752 (136,972,493)3,063,904
Total Net Position $332,107,768 $130,837,694 $462,945,462 $5,601,890
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF NET POSITION
JUNE 30, 2021
29
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions
Primary Government
Governmental Activities:
General Government $19,611,586 $6,968,307 $2,853,630
Fire 34,492,838 5,952,872 243,934
Police 33,376,962 1,642,726 739,919
Public Works 7,567,745 24,859,635 2,398,574 $1,704,698
Parks and Recreation 17,159,696 1,165,630 733,120
Library 6,274,811 19,037 398,910 3,794,000
Economic and Community Development 11,728,168 4,275,808 653,871
Interest on long term debt 2,200,344
Total Governmental Activities 132,412,150 44,884,015 8,021,958 5,498,698
Business-type Activities
Sewer 26,644,459 24,705,044 9,138,461
Parking District 1,338,092 764,514
Storm Water 922,057 410,745 5,676,999
Total Business-type Activities 28,904,608 25,880,303 14,815,460
Total Primary Government $161,316,758 $70,764,318 $22,837,418 $5,498,698
Component Unit
Conference Center $2,880,898 $195,667
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
Miscellaneous
Special Item:
Remittance of land sale proceeds to taxing entities
Transfers (Note 4)
Total general revenues, special item and transfers
Change in Net Position
Net Position - Beginning
Net Position - Ending
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
Program Revenues
30
Component Unit
South
San Francisco
Governmental Business-Type Conference
Activities Activities Total Center
($9,789,649)($9,789,649)
(28,296,032)(28,296,032)
(30,994,317)(30,994,317)
21,395,162 21,395,162
(15,260,946)(15,260,946)
(2,062,864)(2,062,864)
(6,798,489)(6,798,489)
(2,200,344)(2,200,344)
(74,007,479)(74,007,479)
$7,199,046 7,199,046
(573,578)(573,578)
5,165,687 5,165,687
11,791,155 11,791,155
(74,007,479)11,791,155 (62,216,324)
($2,685,231)
41,561,039 41,561,039
33,039,229 33,039,229
6,710,271 6,710,271 1,385,545
4,498,202 4,498,202
4,529,764 4,529,764
49,785 49,785
4,888,696 4,888,696
941,856 52,623 994,479 458
11,602,214 11,602,214 3,800
(1,378,533)(1,378,533)
(4,984,746)4,984,746
101,457,777 5,037,369 106,495,146 1,389,803
27,450,298 16,828,524 44,278,822 (1,295,428)
304,657,470 114,009,170 418,666,640 6,897,318
$332,107,768 $130,837,694 $462,945,462 $5,601,890
Primary Government
Net (Expenses) Revenues and Changes in Net Position
31
This Page Left Intentionally Blank
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 2021. Individual non-
major funds may be found in the Supplemental section.
GENERAL FUND
This fund accounts for resources traditionally associated with government, such as administration, public
safety, library, parks maintenance, and recreation, outside of those accounted for in other funds.
LOW AND MODERATE INCOME HOUSING ASSETS SPECIAL REVENUE FUND
To account for the activities related to the assets assumed by the City as Housing Successor to the
housing activities of the former Redevelopment Agency of the City of South San Francisco. The main
source of revenue for this fund is the repayment of loans restricted for housing activities.
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction, or improvement of City owned
facilities and infrastructure. Funding comes from the general fund, special revenue funds, grants and fees.
EAST OF 101 SEWER IMPACT FEES CAPITAL PROJECTS FUND
These fees provide new development’s share of new and rehabilitated sewer collection and treatment
facilities to serve the East of Highway 101 area.
TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND
These fees are to provide new development’s share of new and expanded roadway and intersection
improvements to serve the East of Highway 101 area and other areas of the City.
CHILD CARE IMPACT FEES CAPITAL PROJECTS FUND
These citywide fees provide new development’s share of new and expanded childcare facilities to serve
the childcare needs of working parents.
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).
CAPITAL IMPROVEMENT POLICE STATION CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction, and installation of certain
capital improvements constituting the new City police station located within the City’s new Civic Center
Campus, and related improvements, facilities and equipment, and pay the costs incurred in connection
with the issuance of the Series 2020A Bonds.
33
FUND FINANCIAL STATEMENTS (Continued)
CAPITAL IMPROVEMENT CIVIC CAMPUS CAPITAL PROJECTS FUND
To account for expenditures associated with the acquisition, construction, and installation of certain
capital improvements constituting the City’s new Civic Center Campus, and related improvements,
facilities and equipment, and pay the costs incurred in connection with the issuance of the Series 2021A
Bonds.
34
This Page Left Intentionally Blank
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2021
Capital Projects Funds
Low and Moderate East of 101
General Income Capital Sewer Traffic
Fund Housing Assets Improvement Impact Fees Impact Fees
ASSETS
Cash and investments (Note 2)$56,463,292 $2,493,621 $1,207,091 $4,130,668 $24,422,340
Receivables:
Accounts 10,529,164 5,732 2,265,306
Accrued interest 164,535 11,907 13,611 67,970
Due from Conference Center 62,516
Loans 714,034
Inventory 4,099
Restricted cash and investments (Note 2)152,797 26,000,000
Properties held for redevelopment (Note 1N)16,354,141
Total Assets $83,730,544 $3,225,294 $29,472,397 $4,144,279 $24,490,310
LIABILITIES
Liabilities:
Accounts payable $3,200,919 $100 $1,057,542
Accrued salaries and benefits 2,835,241
Other payable 797,807 1,992,909
Deposits 927,576
Unearned revenue 210,000 171,504
Total Liabilities 7,971,543 100 3,221,955
FUND BALANCE
Fund Balances (Note 6):
Nonspendable 4,099
Restricted 16,354,141 3,225,194 26,000,000 $4,144,279 $24,490,310
Committed 12,372,202
Assigned 5,431,178 250,442
Unassigned 41,597,381
Total Fund Balances (Deficits)75,759,001 3,225,194 26,250,442 4,144,279 24,490,310
Total Liabilities and Fund Balances (Deficits) $83,730,544 $3,225,294 $29,472,397 $4,144,279 $24,490,310
See accompanying notes to basic financial statements
36
Capital Projects Funds
Capital Capital Capital Other Total
Child Care Developer Infrastructure Improvement Improvement Governmental Governmental
Impact Fees Deposit Reserve Police Station Civic Campus Funds Funds
$6,770,214 $25,813,755 $2,941,651 $66,875,936 $191,118,568
670,805 13,471,007
18,112 80,865 146,082 503,082
62,516
704,966 1,419,000
4,099
$11,651,459 78,660,144 9,185 116,473,585
16,354,141
$6,788,326 $25,894,620 $11,651,459 $81,601,795 $68,406,974 $339,405,998
$2,602,531 $2,941,651 $443,737 $10,246,480
2,835,241
2,260,280 685,011 661,368 6,397,375
2,613,681 3,541,257
5,879,471 6,260,975
4,862,811 3,626,662 9,598,257 29,281,328
4,099
$6,788,326 6,788,648 77,975,133 58,808,717 224,574,748
12,372,202
$25,894,620 31,576,240
41,597,381
6,788,326 25,894,620 6,788,648 77,975,133 58,808,717 310,124,670
$6,788,326 $25,894,620 $11,651,459 $81,601,795 $68,406,974 $339,405,998
37
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
BALANCE SHEET - RECONCILIATION OF GOVERNMENTAL
FUND BALANCES TO NET POSITION OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2021
Total fund balances reported on the governmental funds balance sheet $310,124,670
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. 378,171,535
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. 24,842,774
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 (160,575,541)
Interest payable (424,820)
Deferred outflows related pension 25,259,482
Deferred outflows related to OPEB 5,948,833
Net OPEB liability (57,935,336)
Net pension liability (184,769,905)
Deferred inflows related to OPEB (1,418,330)
Deferred inflows related to pension (136,968)
Non-current portion of compensated absences (6,978,626)
Net position of governmental activities $332,107,768
See accompanying notes to financial statements
38
This Page Left Intentionally Blank
CITY OF SOUTH SAN FRANCISCO
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2021
Capital Projects Funds
Low and Moderate East of 101
General Income Capital Sewer Traffic
Fund Housing Assets Improvement Impact Fees Impact Fees
REVENUES
Property taxes $44,239,406
Sales taxes 32,749,447
Transient occupancy taxes 6,710,271
Franchise Fees 4,498,202
Other taxes 4,529,764
Intergovernmental 4,323,151 $1,406,253
Interest and rentals 3,063,987 $178,385 $8,886 $44,479
Licenses and permits 15,589,002
Charges for services 6,518,254 144,241 443,483 1,962,094
Fines and forfeitures 535,750
Other 731,752
Total Revenues 123,488,986 178,385 1,550,494 452,369 2,006,573
EXPENDITURES
Current:
City Council 224,257
City Clerk 956,698
City Treasurer 38,705
City Attorney 987,044
City Manager 3,993,952
Finance 2,917,393
Non-departmental 1,336,201 1,850
Human Resources 1,654,369
Fire 31,817,325
Police 30,959,959
Public Works 5,731,652 22,098,648 1,850
Parks and Recreation 15,795,645
Library 5,903,883
Economic and Community Development 6,560,605 2,963,255
Other
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 108,877,688 2,963,255 22,098,648 1,850 1,850
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 14,611,298 (2,784,870)(20,548,154)450,519 2,004,723
OTHER FINANCING SOURCES (USES)
Loss on sale of property (818,692)
Issuance of debt 21,470,859
Bond premium 4,529,141
Transfers in (Note 4B)2,272,021 20,562,947
Transfers out (Note 4B)(24,041,188)(1,714,080)(2,530,159)
Total Other Financing Sources (Uses)(22,587,859)46,562,947 (1,714,080)(2,530,159)
Net Change in Fund Balances before special items (7,976,561)(2,784,870) 26,014,793 (1,263,561)(525,436)
SPECIAL ITEMS
Remittance of land sale proceeds (1,378,533)
Net Change in Fund Balances (9,355,094)(2,784,870) 26,014,793 (1,263,561)(525,436)
Fund balances (deficits) - July 1 85,114,095 6,010,064 235,649 5,407,840 25,015,746
Fund balances (deficits) - June 30 $75,759,001 $3,225,194 $26,250,442 $4,144,279 $24,490,310
See accompanying notes to financial statements
40
Capital Projects Funds
Capital Capital Capital Other Total
Child Care Developer Infrastructure Improvements Improvements Governmental Governmental
Impact Fees Deposit Reserve Police Station Civic Campus Funds Funds
$2,210,329 $46,449,735
751,698 33,501,145
6,710,271
4,498,202
1,769,050 6,298,814
12,137,869 17,867,273
$12,236 $890 $54,022 $117,606 139,900 3,620,391
15,589,002
629,882 250,000 13,243,459 23,191,413
535,750
7,161,396 7,893,148
642,118 890 304,022 117,606 37,413,701 166,155,144
224,257
956,698
38,705
987,044
3,993,952
2,917,393
1,850 1,339,901
1,654,369
31,817,325
39,933,467 60,897 70,954,323
672,521 $12,444,256 10,552,327 51,501,254
15,795,645
5,903,883
1,703,643 11,227,503
3,490,091 3,490,091
975,000 975,000
475,260 1,832,200 2,307,460
1,850 672,521 39,933,467 12,919,516 18,614,158 206,084,803
640,268 890 (368,499) (39,815,861) (12,919,516)18,799,543 (39,929,659)
(1,899,999)(2,718,691)
64,939,141 86,410,000
13,587,424 18,116,565
12,368,084 2,767,200 37,970,252
(37,150) (17,678)(3,100,805)(11,761,021) (43,202,081)
(37,150) (17,678)(3,100,805)90,894,649 (10,893,820)96,576,045
603,118 (16,788)(3,469,304) (39,815,861) 77,975,133 7,905,723 56,646,386
(1,378,533)
603,118 (16,788)(3,469,304) (39,815,861) 77,975,133 7,905,723 55,267,853
6,185,208 16,788 29,363,924 46,604,509 50,902,994 254,856,817
$6,788,326 $25,894,620 $6,788,648 $77,975,133 $58,808,717 $310,124,670
41
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, 2021
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $55,267,853
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 90,966,379
Current year depreciation (8,581,603)
Long-Term Debt Payments
Bond proceeds provide current financial resources to governmental funds, but
issuing debt increases long-term liabilities in the Statement of Net Position.
Proceeds from issuance of bonds (86,410,000)
Bond premium (18,116,565)
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 975,000
Amortization of premium is added back to fund balance 379,353
Accrual of Non-Current Items
of current financial resources and therefore is not reported as revenue or expenditures in
governmental funds (net change):
Interest payable (272,237)
Compensated absences (559,402)
Net pension liability, deferred outflows and inflows of resources (6,449,922)
Net OPEB liability, deferred outflows and inflows of resources (1,073,433)
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.1,324,875
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $27,450,298
See accompanying notes to financial statements
The amount below included in the Statement of Activities does not require the use
42
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, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $41,595,650 $43,051,499 $44,239,406 $1,187,907
Sales taxes 29,608,000 31,208,000 32,749,447 1,541,447
Transient occupancy taxes 7,872,437 5,904,328 6,710,271 805,943
Franchise fees 4,600,000 4,600,000 4,498,202 (101,798)
Other taxes 3,118,206 3,118,206 4,529,764 1,411,558
Intergovernmental 2,222,769 3,260,631 4,323,151 1,062,520
Interest and rentals 3,827,794 3,827,794 3,063,987 (763,807)
Licenses and permits 14,995,496 14,995,498 15,589,002 593,504
Charges for services 8,011,656 7,061,654 6,518,254 (543,400)
Fines and forfeitures 789,249 789,249 535,750 (253,499)
Other 175,341 175,341 731,752 556,411
Amounts available for appropriation 116,816,598 117,992,200 123,488,986 5,496,786
Charges to appropriations (outflows):
City Council 284,561 284,561 224,257 60,304
City Clerk 1,096,594 1,096,593 1,016,698 79,895
City Treasurer 145,524 145,525 38,705 106,820
City Attorney 910,049 910,049 987,044 (76,995)
City Manager 2,163,106 5,459,829 6,214,173 (754,344)
Finance 3,239,292 3,639,551 3,442,495 197,056
Non-departmental 1,044,277 1,737,423 1,366,323 371,100
Human Resources 1,779,644 2,031,504 1,889,976 141,528
Fire 29,978,036 31,010,490 32,023,646 (1,013,156)
Police 31,882,490 32,020,244 30,984,959 1,035,285
Public Works 5,774,064 5,856,707 5,973,424 (116,717)
Parks and Recreation 15,654,905 16,024,167 15,978,135 46,032
Library 6,048,132 6,245,898 5,903,883 342,015
Economic and Community Development 7,205,824 9,606,747 8,415,150 1,191,597
Total charges to appropriations 107,206,498 116,069,288 114,458,868 1,610,420
OTHER FINANCING SOURCES (USES)
Loss from sale of capital assets (818,692) (818,692)
Transfers in (Note 4B) 1,314,915 2,323,871 2,272,021 (51,850)
Transfers out (Note 4B) (8,443,371) (41,616,511) (24,041,188) 17,575,323
Total Other Financing Sources (Uses) (7,128,456) (39,292,640) (22,587,859) 16,704,781
2,481,644 (37,369,728) (13,557,741) 23,811,987
SPECIAL ITEM
Remittance of land sale proceeds (1,378,533) (1,378,533)
NET CHANGE IN FUND BALANCE $2,481,644 ($37,369,728) (14,936,274) $22,433,454
Fund Balance - July 1 85,114,095
Adjustment to budgetary basis:
Encumbrance adjustments 5,581,180
Fund Balance - June 30 $75,759,001
See accompanying notes to financial statements
Budgeted Amounts
NET CHANGE IN FUND BALANCES BEFORE SPECIAL ITEM
43
Variance with
Final Budget
Positive
Original Final Actual Amounts (Negative)
REVENUES:
Interest and rental $167,000 $167,000 $178,385 $11,385
Other 140,000 140,000 (140,000)
Total Revenues 307,000 307,000 178,385 (128,615)
EXPENDITURES:
Current:
Economic and Community Development 543,400 3,482,860 2,974,405 508,455
Total Expenditures 543,400 3,482,860 2,974,405 508,455
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (236,400) (3,175,860) (2,796,020) 379,840
NET CHANGE IN FUND BALANCE ($236,400) ($3,175,860) (2,796,020) $379,840
Fund balance - July 1 6,010,064
Adjustment to budgetary basis:
Encumbrance adjustments 11,150
Fund balance - June 30 $3,225,194
SPECIAL REVENUE FUND
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
LOW AND MODERATE INCOME HOUSING ASSETS
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL (NON GAAP LEGAL BASIS)
FOR THE YEAR ENDED JUNE 30, 2021
Budgeted Amounts
44
MAJOR PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private
business enterprise. The intent of the City is that the cost of providing goods and services be financed
primarily through user charges.
SEWER ENTERPRISE FUND
This fund accounts for user charges and debt proceeds supporting the operation, maintenance, and capital
expansion of the wastewater collection and treatment system.
PARKING DISTRICT FUND
This fund accounts for meter and parking permit fees used to acquire and maintain parking facilities.
STORM WATER FUND
This fund accounts for user charges sustaining the Storm Water Management Program mandated by state
and federal authorities.
45
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2021
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds
ASSETS
Current assets:
Cash and investments (Note 2)$25,660,505 $3,593,736 $990,117 $30,244,358 $37,943,084
Receivables:
Accounts 2,902,339 4,875,095 7,777,434 31,027
Accrued interest 55,441 10,517 5,533 71,491 102,980
Deposits 309,790
Restricted cash and investments (Note 2)339,031 339,031
Total current assets 28,957,316 3,604,253 5,870,745 38,432,314 38,386,881
Noncurrent assets:
Capital assets (Note 3):
Nondepreciable 61,706,481 421,149 7,599,370 69,727,000
Depreciable, net accumulated depreciation 105,329,860 9,764,615 1,612,926 116,707,401 4,952,737
Total non-current assets 167,036,341 10,185,764 9,212,296 186,434,401 4,952,737
Total Assets 195,993,657 13,790,017 15,083,041 224,866,715 43,339,618
DEFERRED OUTFLOWS OF RESOURCES
Related to pension (Note 7)2,806,609 2,806,609
Related to OPEB (Note 9)660,981 660,981
Total Deferred Outflows of Resources 3,467,590 3,467,590
LIABILITIES
Current liabilities:
Accounts payable 1,738,466 158,018 2,571,695 4,468,179 387,555
Other payable 837,388 1,023,009 1,860,397 17,816
Accrued interest payable 304,993 304,993
Deposits payable 7,500 7,500
Unearned revenue 33,027 33,027
Accrued insurance loss (Note 11)2,878,797
Compensated absences obligation (Note 1L)506,487 6,577 9,098 522,162 834,623
Current portion of long-term debt (Note 5)5,173,954 5,173,954 140,892
Total current liabilities 8,601,815 164,595 3,603,802 12,370,212 4,259,683
Noncurrent liabilities:
Accrued insurance losses (Note 11)12,871,000
Compensated absences obligation (Note 1L)339,656 15,177 354,833 1,221,524
Noncurrent portion of long-term debt (Note 5)57,631,505 57,631,505 144,637
Net OPEB liability (Note 9)6,437,260 6,437,260
Net pension liability (Note 7)20,529,990 20,529,990
Total noncurrent liabilities 84,938,411 15,177 84,953,588 14,237,161
Total Liabilities 93,540,226 179,772 3,603,802 97,323,800 18,496,844
DEFERRED INFLOWS OF RESOURCES
Related to pension (Note 7)15,219 15,219
Related to OPEB (Note 9)157,592 157,592
Total Deferred Inflows of resources 172,811 172,811
NET POSITION:
Net investment in capital assets 104,230,882 10,185,764 9,212,296 123,628,942 4,667,208
Unrestricted (deficit)1,517,328 3,424,481 2,266,943 7,208,752 20,175,566
Total Net Position $105,748,210 $13,610,245 $11,479,239 $130,837,694 $24,842,774
See accompanying notes to financial statements
46
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2021
Governmental
Business-type Activities - Enterprise Funds Activities
Sewer Parking Storm Internal
Enterprise District Water Total Service Funds
OPERATING REVENUES
Charges for services $24,526,952 $410,145 $24,937,097 $28,237,878
Other cities' participation 9,138,461 9,138,461
Permit fees 178,092 178,092
Parking fees $764,514 764,514
Total Operating Revenues 33,843,505 764,514 410,145 35,018,164 28,237,878
OPERATING EXPENSES
Personnel expenses 10,800,247 344,617 767,141 11,912,005 17,994,279
Professional services 2,681,904 515,795 37,055 3,234,754 756,217
OPEB Expenses 535,039 97 535,136
Program supplies 1,541,503 62,940 1,604,443 1,589,359
Insurance 210,870 3,698 214,568 2,223,844
Self-insurance and claims 2,772,644
Repair and maintenance 1,399,356 24,433 1,423,789 574,598
Rents and leases 1,689,059 1,689,059
Utilities 1,459,453 86,732 11,533 1,557,718 126,172
Administration 1,034,931 74,679 27,669 1,137,279
Depreciation 4,667,580 253,232 46,028 4,966,840 922,865
Other 48,970 4,500 53,470 483,302
Total Operating Expenses 26,068,912 1,338,092 922,057 28,329,061 27,443,280
Operating Income (Loss)7,774,593 (573,578) (511,912) 6,689,103 794,598
NONOPERATING REVENUES (EXPENSES)
Interest income 41,888 6,994 3,741 52,623 70,583
Gain on dispositions of capital assets 1,389
Loss from dispositions of capital assets (20,006)
Interest expense (575,547)(575,547)(11,585)
Subventions and grants 5,676,999 5,676,999
Other 600 600 242,813
Total Nonoperating Revenues (Expenses)(533,659)6,994 5,681,340 5,154,675 283,194
Income (loss) before transfers 7,240,934 (566,584) 5,169,428 11,843,778 1,077,792
TRANSFERS
Transfers in (Note 4C)4,052,198 934,632 4,986,830 250,000
Transfers (out) (Note 4C)(2,084)(2,084)(2,917)
Change in Net Position 11,293,132 (568,668) 6,104,060 16,828,524 1,324,875
Net Position (Deficits) - July 1 94,455,078 14,178,913 5,375,179 114,009,170 23,517,899
Net Position (Deficits) - June 30 $105,748,210 $13,610,245 $11,479,239 $130,837,694 $24,842,774
See accompanying notes to financial statements
47
CITY OF SOUTH SAN FRANCISCO
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2021
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 $32,873,383 $764,514 ($4,656,028) $28,981,869
Cash payments to suppliers for goods and services (12,540,984) (598,271) (224,444) (13,363,699) ($5,396,149)
Cash payments to employees for services (9,829,507) (344,401) (774,378) (10,948,286) (18,134,977)
Cash received from interfund service provided 28,447,341
Cash payments for judgments and claims (1,988,071)
Net Cash Provided by (Used in) Operating Activities 10,502,892 (178,158) (5,654,850) 4,669,884 2,928,144
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Subventions and grants 5,676,999 5,676,999
Transfers in 4,052,198 934,632 4,986,830 250,000
Transfers in (2,084)(2,084)(2,917)
Net Cash Provided by Noncapital Financing Activities 4,052,198 (2,084) 6,611,631 10,661,745 247,083
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Proceeds from issuance of debt 15,038,527 15,038,527
Principal paid on long-term debt (5,038,675)(5,038,675)(204,252)
Interest paid on long-term debt (667,827)(667,827)(11,585)
Acquisition of capital assets, net (20,941,033)(2,096,893) (23,037,926)(574,701)
Proceeds from the sale of capital assets 16,509
Net Cash Used in Capital and Related Financing Activities (11,609,008)(2,096,893) (13,705,901)(774,029)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received (143,588)(25,955)(13,681) (183,224)(262,602)
Changes in fair value of investments 209,996 39,836 20,958 270,790 390,064
Net Cash Provided by Investing Activities 66,408 13,881 7,277 87,566 127,462
Net Increase (Decrease) in cash and cash equivalents 3,012,490 (166,361) (1,132,835) 1,713,294 2,528,660
Cash and cash equivalents, beginning 22,987,046 3,760,097 2,122,952 28,870,095 35,414,424
Cash and cash equivalents, ending $25,999,536 $3,593,736 $990,117 $30,583,389 $37,943,084
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)$7,774,593 ($573,578) ($511,912) $6,689,103 $794,598
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation 4,667,580 253,232 46,028 4,966,840 922,865
Other non-operating revenue (expenses)600 600 242,813
Net change in assets and liabilities:
Accounts and lease receivables (970,122)(4,861,470) (5,831,592)(13,350)
Deposit (20,000)
Prepaid items 1,074,537
Accounts payable (1,046,642) 142,038 (115,557) (1,020,161)(838,200)
Other payable (893,257)(66)1 (893,322)(156,843)
Unearned revenue (205,303) (205,303)
Accrued insurance losses 784,573
(Decrease) increase due to OPEB 119,271 119,271
Compensated absence obligations 134,810 216 (7,237) 127,789 137,151
(Decrease) increase due to retirement system 716,659 716,659
Net Cash Provided by (Used in) Operating Activities $10,502,892 ($178,158) ($5,654,850) $4,669,884 $2,928,144
NONCASH TRANSACTIONS
Retirement of capital assets ($35,126)
See accompanying notes to basic financial statements
48
FIDUCIARY FUNDS
These funds are used to account for assets held by the City as an agent for individuals, private
organizations, and other governments. The financial activities of these funds are excluded from the
government-wide financial statements, but are presented in separate Fiduciary Fund financial statements.
SUCCESSOR AGENCY PRIVATE PURPOSE TRUST FUND
The Fund is used to account for the activities of the Successor Agency to the former Redevelopment
Agency of the City of South San Francisco.
SSF EMPLOYEE DEFERRED COMP TRUST OVERSIGHT CUSTODIAL FUND
This fund is used to pay for the administrative costs of monitoring the Deferred Compensation Funds on
behalf of City employees.
49
Custodial Fund
Successor SSF Employee
Agency Deferred Comp
Private Purpose Trust
Trust Fund Oversight
ASSETS
Cash and investments (Note 2) $4,347,412 $129,827
Accounts receivable 3,071
Interest receivable 17,033 342
Prepaid items 25,601
Advances to the City (Note 5) 3,595,152
Loans receivable (Note 13B) 96,796
Restricted cash and investments (Note 2) 25,420,934
Capital assets (Note 13C):
Nondepreciable 111,219
Depreciable, net accumulated depreciation 244,718
Total Assets 33,861,936 130,169
NET POSITION
Held in trust for other purposes $33,861,936
Restricted for others $130,169
See accompanying notes to financial statements
CITY OF SOUTH SAN FRANCISCO
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2021
50
CITY OF SOUTH SAN FRANCISCO
FIDUCIARY FUNDS
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FOR THE YEAR ENDED JUNE 30, 2020
Custodial Fund
Successor SSF Employee
Agency Deferred Comp
Private Purpose Trust
Trust Fund Oversight
ADDITIONS
Intergovernmental $1,816,900
Plan contributions $32,081
Interest and rentals 56,662 238
Total Additions 1,873,562 32,319
DEDUCTIONS
Economic and Community Development 13,701,211
Professional services 7,900
Depreciation 6,593
Total Deductions 13,707,804 7,900
Change in net position (11,834,242)24,419
NET POSITION HELD IN TRUST OR RESTRICTED FOR OTHER PURPOSES
Beginning of the year, as restated (Note 1T)45,696,178 105,750
End of the year $33,861,936 $130,169
See accompanying notes to financial statements
51
This Page Left Intentionally Blank
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A.Description of the Financial Reporting Entity
As required by generally accepted accounting principles, the financial statements present the City
of South San Francisco (the City) as the Primary Government, with its component units for which
the City is considered financially accountable. The component units discussed below are
included in the City's reporting entity because of the significance of their operational and
financial relationships with the City.
B.Description of Blended Component Units
The accompanying basic financial statements include all funds and boards and commissions that
are controlled by the City Council. The basic financial statements include the City’s blended
component units, entities for which the City is considered to be financially accountable. A
blended component unit, although a legally separate entity, is in substance, part of the City’s
operations and so data from this unit is combined with the City. The City’s following blended
component units are described below.
The City of South San Francisco Capital Improvements Financing Authority is a joint
exercise of powers authority created in 1991 between the City and the City of South San
Francisco former Redevelopment Agency. The Capital Improvements Financing Authority is
authorized to borrow money through the purchase or issuance of bonds, notes, or other
obligations for the purpose of making loans to the City and other public entities to finance capital
improvements. The City Council members serve as the Board of Directors. The financial
activities of the Capital Improvements Financing Authority are included in the Capital
Improvement Police Station Capital Projects Fund. Separate financial statements are not issued
for the Capital Improvements Financing Authority.
The Parking Authority of the City of South San Francisco was formed in October 2019
pursuant to the California Parking Law of 1949, Streets and Highways Code Section 32500, et
seq. The City Council members serve as the Board of Directors. The financial activities of the
Parking Authority are included in the Capital Improvements Police Station Capital Projects
Fund. Separate financial statements are not issued for the Parking Authority.
The City of South San Francisco Public Facilities Financing Authority is a joint exercise of
powers authority created in December 2019 between the City and the Parking Authority. The
Public Facilities Financing Authority is authorized to borrow money through the purchase or
issuance of bonds, notes, or other obligations for the purpose of making loans to the City or the
Parking Authority and other public or private entities to finance capital improvements. The City
Council members serve as the Board of Directors. The financial activities of the Public Facilities
Financing Authority are included in the Capital Improvements Police Station Capital Projects
Fund. Separate financial statements are not issued for the Public Facilities Financing Authority.
53
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
C. Description of Discrete Component Unit
The City of South San Francisco Conference Center Authority was established in 1992 to
manage and operate the South San Francisco Conference Center. The Authority is governed by a
Board of nine commissioners consisting of two Council members and seven representatives from
various businesses appointed by City Council.
The Authority does not meet the criteria of a blended component unit, since the City Council is
not the Authority’s governing body and the Authority does not provide services entirely to the
City. However, the City is financially accountable and is able to impose its will on the Authority.
The Authority is therefore considered a discrete component unit with its financial data reported
separately from the financial data of the City.
The City of South San Francisco Conference Center Authority financial statements may be
obtained from the Authority at 255 South Airport Boulevard, South San Francisco, CA 94080.
D. Basis of Presentation
Government-wide Statements - The Statement of Net Position and the Statement of Activities
display information about the primary government (the City) and its component units. These
statements include the financial activities of the overall City government, except for fiduciary
activities. Interfund transfers and amounts owed between funds within the primary government
have been eliminated from the statements. Amounts representing interfund services and uses
remain in the statements. These statements distinguish between the governmental and business-
type activities of the City. Governmental activities generally are financed through taxes,
intergovernmental revenues, and other nonexchange transactions. Business-type activities are
financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues
for each segment of the business-type activities of the City and for each function of the City’s
governmental activities. Direct expenses are those that are specifically associated with a program
or function and, therefore, are clearly identifiable to a particular function. Program revenues
include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants
and contributions that are restricted to meeting the operational needs of a particular program and
(c) fees, grants and contributions that are restricted to financing the acquisition or construction of
capital assets. Revenues that are not classified as program revenues, including all taxes, are
presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the City’s
funds, including fiduciary funds and blended component units. Separate statements for each fund
category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund
financial statements is on major individual governmental and enterprise funds, each of which is
displayed in a separate column. All remaining governmental and enterprise funds are aggregated
and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with the principal activity of the fund. Exchange transactions are those in
which each party receives and gives up essentially equal values. Nonoperating revenues, such as
subsidies and investment earnings, result from nonexchange transactions or ancillary activities.
54
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
E. Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or
expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand
total. The General Fund is always a major fund. The City may also select other funds it believes
should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial
statements:
General Fund – Accounts for resources traditionally associated with government, such as
administration, public safety, library, parks, maintenance, and recreation, outside of those
accounted for in other funds.
Low and Moderate Income Housing Assets Special Revenue Fund – This fund was
established to account for the activities related to the assets assumed by the City as Housing
Successor to the housing activities of the former Redevelopment Agency of the City. The main
source of revenue for this fund is the repayment of loans restricted for housing activities.
Capital Improvement Capital Projects Fund – Accounts for expenditures associated with the
acquisition, construction, or improvement of City-owned facilities and infrastructure. Funding
comes from the General Fund, Special Revenue funds, grants and fees.
East of 101 Sewer Impact Fees Capital Projects Fund – These fees provide new
development’s share of new and rehabilitated sewer collection and treatment facilities to serve the
East of Highway 101 area.
Traffic Impact Fees Capital Projects Fund – These fees are to provide new developments share
of new and expanded roadway and intersection improvements to serve the East of Highway 101
area and other areas within the City.
Child Care Impact Fees Capital Projects Fund – These citywide fees provide new
development’s share of new and expanded childcare facilities to serve the City.
Developer Deposit 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).
Capital Improvement Police Station – Accounts for expenditures associated with the
acquisition, construction, and installation of certain capital improvements constituting to new
City police station located within the City’s new Civic Center Campus, and related
improvements, facilities and equipment, and pay the costs incurred in connection with the
issuance of the Series 2020A Bonds.
55
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Capital Improvement Civic Campus – Accounts for expenditures associated with the
acquisition, construction, and installation of certain capital improvements constituting the City’s
new Civic Center Campus, and related improvements, facilities and equipment, and pay the costs
incurred in connection with the issuance of the Series 2021A Bonds.
The City reported all enterprise funds as major funds in the accompanying financial statements.
The enterprise funds are:
Sewer Enterprise Fund – Accounts for user charges and debt proceeds supporting the operation,
maintenance, and capital expansion of the wastewater collection and treatment system.
Parking District Fund – Accounts for meter and parking permit fees used to acquire and
maintain parking facilities.
Storm Water Fund – Accounts for user charges sustaining the Storm Water Management
Program mandated by state and federal authorities.
The City also reports the following fund types:
Internal Service Funds – These funds account for City services, self insurance, health and
retirement benefits, and equipment replacement; all of which are provided to other departments
on a cost-reimbursement basis.
Fiduciary Funds – A custodial fund is used to account for assets held by the City for the SSF
Employee Deferred Comp Trust Oversight Fund, which is outside of the City’s reporting entity.
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, fiduciary, and discretely presented component unit financial
statements are reported using the economic resources measurement focus and the full accrual
basis of accounting. Revenues are recorded when earned and expenses are recorded at the time
liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and
the modified accrual basis of accounting. Under this method, revenues are recognized when
measurable and available. The City considers all revenues reported in the governmental funds to
be available if the revenues are collected within sixty days after year-end. Expenditures are
recorded when the related fund liability is incurred, except for principal and interest on long-term
debt, 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.
56
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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, except
the American Recovery Plan Act Special Revenue Fund, Developer Contributions Special
Revenue Fund, Supplemental Law Enforcement Services Special Revenue Fund, City Programs
Special Revenue Fund, and Affordable Housing Trust Special Revenue; Capital Projects funds
except for the Developer Deposit Capital Projects Fund, Non-obligated Capital Projects Fund,
Oyster Point Improvement Impact Fees Capital Projects Fund, Oyster Point Development Impact
Fees Capital Projects Fund, Park Land Acquisition Capital Projects Fund, Bicycle and Pedestrian
Impact Fee Capital Projects Fund and Commercial Linkage Impact Fee 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.
57
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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, 2021.
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 and other funds had expenditures in excess
of appropriations for the year ended June 30, 2021:
Expenditures in
Excess of Budget
(Non GAAP
Legal Basis)
General Fund:
City Attorney $76,995
City Manager 754,344
Fire 1,013,156
Public Works 116,717
Capital Improvements Civic Campus Capital Projects Fund 161,364
Solid Waste Reduction Special Revenue Fund 27,301
Sufficient resources were available within each fund to finance these excesses.
58
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
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.
59
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
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 $8,338,220 $749,206 $9,087,426
Additions 5,860,424 720,793 6,581,217
Payments (5,163,871) (593,004) (5,756,875)
Ending Balance $9,034,773 $876,995 $9,911,768
Current Portion $4,612,735 $522,162 $5,134,897
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.
60
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
P.Deferred Outflows/Inflows of Resources – In addition to assets, the statement of financial
position or balance sheet reports a separate section for deferred outflows of resources. This
separate financial statement element, deferred outflows of resources, represents a consumption of
net 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.
Q. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The City
categorizes its fair value measurements within the fair value hierarchy established by generally
accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation
techniques used to measure fair value into three levels based on the extent to which inputs used in
measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable
for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the
fair value hierarchy, the measurement is considered to be based on the lowest priority level input
that is significant to the entire measurement.
R.Use of Estimates – The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent asset and liabilities at the
dates of the financial statements and the reported amounts of revenues and expenditures/expenses
during the reporting periods. Actual results could differ from those estimates.
S. New, Closed and Renamed Funds
In fiscal year 2020-2021, the City established the following funds:
The Capital Improvements Civic Campus Capital Projects Fund is used to account for
expenditures associated with the acquisition, construction, and installation of certain capital
improvements constituting the City’s new Civic Center Campus, and related improvements,
facilities and equipment’s, and pay the costs incurred in connection with the issuance of the
Series 2021A Bonds.
The American Rescue Plan Act Special Revenue Fund is used to account for the City’s allocation
of American Rescue Plan federal stimulus funds, as part of the federal government’s response to
the impacts of the COVID-19 pandemic.
61
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The Federal Aviation Grants Special Revenue Fund, Developer Deposit Capital Projects Fund,
Non-obligated Capital Projects Fund were closed as of June 30, 2021.
The East of 101 Traffic Impact Fees Capital Projects Fund was renamed to the Traffic Impact
Fees Capital Projects Fund.
T. New Accounting Pronouncement
In January 2017, GASB issued GASB Statement No. 84, Fiduciary Activities. The objective of
this Statement is to improve guidance regarding the identification of fiduciary activities for
accounting and financial reporting purposes and how those activities should be reported. This
Statement describes four fiduciary funds that should be reported, if applicable: (1) pension (and
other employee benefit) trust funds, (2) investment trust funds, (3) private-purpose trust funds,
and (4) custodial funds. Custodial funds generally should report fiduciary activities that are not
held in a trust or equivalent arrangement that meets specific criteria. The provisions of this
Statement were implemented during fiscal year 2021. As part of the implementation of this
Statement, it was determined that the SSF Employee Deferred Comp Trust Oversight Fund,
formerly reported as an Agency Fund, be accounted for and reported as a Custodial Fund, which
required the restatement of beginning net position of the fund in the amount of $105,750.
NOTE 2 - CASH AND INVESTMENTS
The City’s goal is to invest at the maximum yield, consistent with safety and liquidity, while
individual funds can process payments for expenditures at any time.
A. Policies
The City invests in individual investments and in investment pools. Individual investments are
evidenced by specific identifiable securities instruments, or by an electronic entry registering the
owner in the records of the institution issuing the security, called the book entry system. In order
to increase security, the City employs the Trust Department of a bank as the custodian of certain
City managed investments, regardless of their form.
California Law requires banks and savings and loan institutions to pledge government securities
with a fair value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a
fair value of 150% of the deposit, as collateral for these deposits. Under California Law this
collateral is held in a separate investment pool by another institution in the City’s name and
places the City ahead of general creditors of the institution.
The City’s investments are carried at fair value, as required by generally accepted accounting
principles. The City adjusts the carrying value of its investments to reflect their fair value at each
fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.
B.Classification
Cash and investments as of June 30, 2021 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.
62
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 2 - CASH AND INVESTMENTS (Continued)
Financial Statement Presentation:
Statement of Net Position:
City of South San Francisco:
Cash and investments available for operations $259,306,010
Restricted cash and investments 116,812,616
Total Primary Government cash and investments 376,118,626
Statement of Fiduciary Assets:
Cash and investments available for operations 4,477,239
Restricted cash and investments 25,420,934
Total Fiduciary cash and investments 29,898,173
Conference Center:
Cash and investments available for operations 3,322,418
Total South San Francisco
Conference Center cash and investments 3,322,418
Total cash and investments $409,339,217
The City does not allocate investments by fund. Each proprietary fund’s portion of Cash and
Investments Available for Operations is in substance a demand deposit available to finance
operations, and is considered a cash equivalent in preparing the statement of cash flows.
C. Investments Authorized by the California Government Code and the City’s Investment Policy
The City’s investment policy and the California Government Code allow the City to invest in the
following provided the credit ratings of the issuers are acceptable to the City and approved
percentages and maturities are not exceeded. The table below also identifies certain provisions of
the California Government Code, or the City’s Investment Policy where it is more restrictive:
Minimum Maximum Maximum
Maximum Credit Percentage Investment
Authorized Investment Type Maturity Quality (A) of Portfolio in One Issuer
U.S. Treasury Securities 5 years N/A No Limit No Limit
Federal Agency or U.S. Government
Sponsored Enterprise Obligations 5 years N/A No Limit 25%
Supranational Obligations 5 years AA 30% 10%
Corporate Medium-Term Notes 5 years A 30%5%
Asset-Backed Securities 5 years AA 20%5%
Commercial Paper 270 days A1,P1 25%5%
Negotiable Certificates of Deposit 5 years A-1 or A 30%5%
Repurchase Agreements 90 days AA No Limit No Limit
Local Agency Investment Fund (LAIF) Upon Demand N/A $75 million No Limit
Money Market Mutual Funds N/A AAAm 20% 10%
Rating System, or its equivalent.
(A) The City's Investment Policy includes credit ratings provided by Standard and Poor's Investment
63
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 2 - CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City and the Successor Agency to the former Redevelopment Agency must maintain required
amounts of cash and investments with trustees or fiscal agents under the terms of certain debt
issues. These funds are unexpended bond proceeds or are pledged as reserves to be used if the
City or Successor Agency fail to meet its obligations under these debt issues. The California
Government Code requires these funds to be invested in accordance with City ordinance bond
indentures or State statute. The table below identifies the investment types that are authorized for
investments held by fiscal agents. The table also identifies certain provisions of these debt
agreements:
Minimum Maximum
Maximum Credit Percentage
Authorized Investment Type Maturity Quality of Portfolio
U.S. Treasury Obligations N/A N/A No Limit
Federal Agency or U.S. Government
Sponsored Enterprise Obligations N/A N/A No Limit
Federal Housing Administration Debentures N/A N/A No Limit
Bankers Acceptances 30 days A-1 or A-2 No Limit
Commercial Paper 270 days A1,P1 No Limit
Negotiable Certificates of Deposit 5 years A-1 or A No Limit
Guaranteed Investment Agreements N/A A1,P1 No Limit
Municipal Obligations N/A Aaa No Limit
State Obligations N/A A2 No Limit
Money Market Mutual Funds N/A AAAm No Limit
Repurchase Agreements 90 days AA No Limit
Local Agency Investment Fund (LAIF) Upon Demand N/A No Limit
E. Investments Authorized by the Authority
The City of South San Francisco Conference Center Authority follows the California Government
Code which authorizes an agency to invest in their own bonds, certain time deposits, obligations
of the U.S. Treasury, agencies and instrumentalities, commercial paper, bankers’ acceptances
with maturities not to exceed 270 days, and medium-term notes issued by corporations operating
within the U.S., commercial paper rated P-1 or higher by Moody’s or A-1 by Standard & Poor’s
commercial paper record, repurchase agreements of obligations of the U.S. Government or its
agencies for a term of one year or less and the Local Agency Investment Fund.
64
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 2 - CASH AND INVESTMENTS (Continued)
F. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Normally, the longer the maturity of an investment, the greater the sensitivity
of its fair value to changes in market interest rates. The City also manages its interest rate risk is
by holding most investments to maturity, thus reversing unrealized market gains and losses.
Information about the sensitivity of the fair values of the City’s investments (including
investments held by bond trustee) to market interest rate fluctuations is provided by the following
table that shows the distribution of the City’s investments by maturity or earliest call date:
Remaining maturity
Less than One to Five
1 year Years Total
City and Fiduciary:
U.S. Treasury Notes $11,782,745 $45,345,470 $57,128,215
Federal Agency Securities 4,478,162 52,542,612 57,020,774
Local Agency Investment Fund 78,574,384 78,574,384
Money Market Funds 23,227,570 23,227,570
Corporate Medium Term Notes 5,846,426 29,679,785 35,526,211
Negotiable Certificates of Deposit 4,499,904 4,499,904
Asset-Backed Securities 1,661,088 20,931,654 22,592,742
Supranational Obligations 3,057,219 7,206,371 10,263,590
South San Francisco Conference Center:
Local Agency Investment Fund 2,904,202 2,904,202
Total Investments $136,031,700 $155,705,892 291,737,592
Cash in Banks and on Hand - City of South San Francisco 117,183,409
Cash in Banks and on Hand - South San Francisco Conference Center 418,216
Total Cash and Investments $409,339,217
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by
California Government Code Section 16429 under the oversight of the Treasurer of the State of
California. The City reports its investment in LAIF at the fair value amount provided by LAIF,
which is the same as the value of the pool share. The balance is available for withdrawal on
demand, and is based on the accounting records maintained by LAIF, which are recorded on an
amortized cost basis. Each regular LAIF account is permitted to have up to 15 transactions per
month, with a minimum transaction amount of $5,000, a maximum transaction amount of $75
million and at least 24 hours advance notice for withdrawals of $10 million or more. Bond
proceeds accounts are subject to a one‐time deposit with no cap and are set up with a monthly
draw down schedule. Included in LAIF’s investment portfolio are collateralized mortgage
obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds,
and floating rate securities issued by federal agencies, government-sponsored enterprises, United
States Treasury Notes and Bills, and corporations. At June 30, 2021, these investments have an
average maturity of 291 days.
Money market funds are available for withdrawal on demand and as of June 30, 2021 have an
average maturity of 25 days.
65
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
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, 2021, for each
of the Primary Government’s investment types as provided by Moody’s investment rating system,
except as noted:
Investment Type Aaa Aaa-mf Aa1-Aa3 A1-A3 P-1 Total
City and Fiduciary:
Federal Agency Securities $57,020,774 $57,020,774
Money Market Funds $23,227,570 23,227,570
Corporate Medium Term Notes 715,168 $2,820,760 $31,990,283 35,526,211
Negotiable Certificates of Deposit $4,499,904 4,499,904
Asset-Backed Securities 13,869,001 13,869,001
Supranational Obligations 10,263,590 10,263,590
Totals $81,868,533 23,227,570$ 2,820,760$ 31,990,283$ 4,499,904$ 144,407,050
City and Fiduciary:
Not rated:
Federal Agency Securities
Asset-Backed Securities 8,723,741
Local Agency Investment Fund 78,574,384
Exempt from credit rating disclosure:
U.S. Treasury Notes 57,128,215
Not rated:
Local Agency Investment Fund 2,904,202
Total Investments $291,737,592
South San Francisco Conference Center:
H.Custodial Credit Risk – Deposits
Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be
returned to it. As of June 30, 2021, the book value of the City’s cash with banks and petty cash was
$117,183,409 and the associated bank balances were $119,581,015. Of the City’s bank balance,
$103,801,305 was exposed to custodial credit risk, because it was not FDIC insured or collateralized
by securities as noted in Note 2A above.
I.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, 2021:
Issuer Investment Type Amount
Federal National Mortgage Association Federal Agency Securities $23,979,080
Federal Home Loan Mortgage Corporation Federal Agency Securities 25,131,510
66
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 2 - CASH AND INVESTMENTS (Continued)
J. 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, 2021:
Level 2 Total
Investments by Fair Value Level:
City and Fiduciary:
U.S. Treasury Notes $57,128,215 $57,128,215
Federal Agency Securities 57,020,774 57,020,774
Corporate Medium Term Notes 35,526,211 35,526,211
Negotiable Certificates of Deposit 4,499,904 4,499,904
Asset Backed Securities 22,592,742 22,592,742
Supranational Obligations 10,263,590 10,263,590
Totals $187,031,436 187,031,436
Investments Measured at Amortized Cost:
City and Fiduciary:
Money Market Mutual Funds 23,227,570
Investments Exempt from Fair Value Hierarchy:
City and Fiduciary:
Local Agency Investment Fund 78,574,384
South San Francisco Conference Center:
Local Agency Investment Fund 2,904,202
Total Investments $291,737,592
All Investments classified in Level 2 of the fair value hierarchy are valued using various pricing
techniques maintained by Interactive Data Pricing, including benchmark curves, sector groupings
and matrix pricing. These prices are obtained from various pricing sources by the City’s
investment manager. Money market funds were reported at amortized cost.
67
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 3 - CAPITAL ASSETS
A.Capital Asset Changes – Changes in capital assets during the fiscal year consist of:
Balance 6/30/2020
Additions and
Adjustments
Retirements and
Adjustments Transfers Balance 6/30/2021
Governmental activities
Capital assets not being depreciated:
Land $66,729,001 $66,729,001
Construction in Progress 71,235,808 $90,966,379 ($1,825,318) 160,376,869
Total capital assets not being depreciated 137,964,809 90,966,379 (1,825,318) 227,105,870
Capital assets being depreciated:
Buildings and Improvements 96,271,652 1,098,986 97,370,638
Infrastructure - Streets 200,138,942 726,332 200,865,274
Infrastructure - Storm Drains 8,927,492 8,927,492
Infrastructure - Traffic Control Devices 12,591,370 12,591,370
Equipment and Vehicle 7,407,729 ($17,130) 7,390,599
Furniture and Fixtures 2,614,215 2,614,215
Total capital assets being depreciated 327,951,400 (17,130) 1,825,318 329,759,588
Less accumulated depreciation for:
Buildings and Improvements (42,320,722) (2,557,003)(44,877,725)
Infrastructure - Streets (111,465,285) (5,066,113)(116,531,398)
Infrastructure - Storm Drains (3,775,561) (204,500)(3,980,061)
Infrastructure - Traffic Control Devices (4,216,790) (512,448)(4,729,238)
Equipment and Vehicle (6,554,620) (146,503)17,130 (6,683,993)
Furniture and Fixtures (1,796,472) (95,036)(1,891,508)
Total accumulated depreciation (170,129,450) (8,581,603)17,130 (178,693,923)
Net Governmental Fund
Capital Assets Being Depreciated 157,821,950 (8,581,603)1,825,318 151,065,665
Internal Service Fund Capital Assets
Capital assets not being depreciated:
Construction in Progress 80,951 (80,951)
Total capital assets not being depreciated 80,951 (80,951)
Capital assets being depreciated:
Equipment and Vehicle 17,004,543 214,019 (160,654) 80,951 17,138,859
Accumulated depreciation (11,388,785) (922,865) 125,528 (12,186,122)
Net Internal Service Fund Capital Assets
Being Depreciated 5,615,758 (708,846) (35,126) 80,951 4,952,737
Governmental activities capital assets, net $301,483,468 $81,675,930 ($35,126)$383,124,272
Total capital assets not being depreciated $138,045,760 $90,966,379 ($1,906,269) $227,105,870
Net capital assets being depreciated 163,437,708 (9,290,449) ($35,126)1,906,269 156,018,402
Governmental activities capital assets, net $301,483,468 $81,675,930 ($35,126)$383,124,272
68
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 3 - CAPITAL ASSETS (Continued)
Balance Balance
June 30, 2020 Additions Retirements Transfers June 30, 2021
Business-type activities
Capital assets, not being depreciated:
Land $794,587 $794,587
Construction in Progress 55,402,308 $26,627,306 ($13,097,201) 68,932,413
Total capital assets not being depreciated 56,196,895 26,627,306 (13,097,201) 69,727,000
Capital assets being depreciated:
Buildings and Improvements 67,075,858 13,097,201 80,173,059
Clean Water Facilities and Lines 79,862,094 79,862,094
Infrastructure - Storm Drains 6,216,365 6,216,365
Infrastructure - Streets 7,377,546 7,377,546
Equipment and Vehicle 18,470,728 ($15,182)18,455,546
Furniture and Fixtures 31,154 31,154
Total capital assets being depreciat ed 179,033,745 (15,182)13,097,201 192,115,764
Less accumulated depreciation for:
Buildings and Improvements (20,981,917) (1,834,131)(22,816,048)
Clean Water Facilities and Lines (33,091,933) (1,962,279)(35,054,212)
Infrastructure - Storm Drains (1,382,750) (187,982)(1,570,732)
Infrastructure - Streets (2,259,831) (209,570)(2,469,401)
Equipment and Vehicle (12,709,120) (772,878) 15,182 (13,466,816)
Furniture and Fixtures (31,154)(31,154)
Total accumulated depreciation (70,456,705) (4,966,840) 15,182 (75,408,363)
Net capital assets being depreciated 108,577,040 (4,966,840)13,097,201 116,707,401
Business-type activities capital assets, net $164,773,935 $21,660,466 $186,434,401
Balance Balance
June 30, 2020 Additions Retirements June 30, 2021
Component Unit:
South San Francisco Conference Center
Construction in Progress $77,670 ($77,670)
Buildings and Improvements 10,909,288 $10,909,288
Furniture and Fixtures 950,814 950,814
Machinery and Equipment 479,698 $103,024 582,722
Total 12,417,470 103,024 (77,670) 12,442,824
Less accumulated depreciation (9,306,201) (598,637)(9,904,838)
Component Unit Capital Assets, Net $3,111,269 ($495,613) ($77,670) $2,537,986
B.Capital Asset Contributions - Some capital assets may have been acquired using federal and
State grant funds, or were contributed by developers or other governments. Contributed capital
assets are valued at their estimated acquisition value on the date contributed. Generally accepted
accounting principles require that these contributions be accounted for as revenues at the time the
capital assets are contributed.
69
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
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 $742,137
Fire 333,069
Police 101,676
Public works 6,730,394
Parks and recreation 546,691
Library 76,027
Economic and community development 51,609
Total Governmental Functions 8,581,603
Internal Service Funds 922,865
Total Governmental Activities $9,504,468
Business-Type Activities
Sewer Enterprise $4,667,580
Parking District 253,232
Storm Water 46,028
Total Business-Type Activities $4,966,840
NOTE 4 - INTER-FUND TRANSACTIONS
A. Internal Balances
Internal balances are presented in the entity-wide financial statements only. They represent the
net interfund receivables and payables remaining after the elimination of all such balances within
governmental and business-type activities.
70
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 4 - INTER-FUND TRANSACTIONS (Continued)
B.Transfers
Transfers between funds during the fiscal year ended June 30, 2021 were as follows:
FROM FUND (OUT) TO FUND (IN)AMOUNT
General Fund Capital Improvements Capital Projects Fund $8,405,904
Capital Improvements Civic Campus Capital Projects Fund 12,368,084
Storm Water Enterprise Fund 250,000
Non-Major Governmental Funds 2,767,200
Internal Service Fund 250,000
East of 101 Sewer Impact Fees Capital Project Fund Sewer Enterprise Fund 1,714,080
Traffic Impact Fees Capital Projects Fund Capital Improvement Capital Projects Fund 2,530,159
Child Care Impact Fees Capital Projects Fund Capital Improvement Capital Projects Fund 37,150
Developer Deposit Capital Projects Fund General Fund 17,678
Capital Infrastructure Reserve Capital Projects Fund Capital Improvement Capital Projects Fund 3,100,805
Non-Major Governmental Funds General Fund 2,254,343
Capital Improvement Capital Projects Fund 6,483,928
Sewer Enterprise Fund 2,338,118
Storm Water Enterprise Fund 684,632
Parking District Enterprise Fund Capital Improvement Capital Projects Fund 2,084
Internal Service Fund Capital Improvement Capital Projects Fund 2,917
Total $43,207,082
71
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
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, 2021 follows:
Authorized
and Balance at Balance at Current
Issued June 30, 2020 Additions Retirement June 30, 2021 Portion
Governmental Activities
Lease Revenue Bonds:
2020A Police Station Project, 4.00 to 5.00% (1)$43,905,000 $43,905,000 $935,000 $42,970,000 $980,000
Plus: Unamortized bond premium 9,863,177 379,353 9,483,824
2021A Community Civic Campus Project, 4.00% (2)86,410,000 $86,410,000 86,410,000 2,210,000
Plus: Unamortized bond premium 18,116,565 18,116,565
Total Lease Revenue Bonds 130,315,000 53,768,177 104,526,565 1,314,353 156,980,389 3,190,000
Direct Borrowing:
2007 Loans Payable to the Successor Agency (3) 3,635,152 40,000 3,595,152
Capital Leases (4):
2010 Two Fire Trucks 67,006 67,006
2013 Fire Truck 422,775 137,246 285,529 140,892
Total Capital Leases 489,781 204,252 285,529 140,892
Total Direct Borrowing 4,124,933 244,252 3,880,681 140,892
Net Governmental Long-Term Debt $130,315,000 $57,893,110 $104,526,565 $1,558,605 $160,861,070 $3,330,892
Business-Type Activities
Revenue Bonds:
2005 Water and Wastewater Revenue Bonds, 2.75 to 4.75%, $6,000,000 $2,655,000 $330,000 $2,325,000 $345,000
due 04/30/26 (5)
Direct Borrowing:
1999 State Water Resources Loan, 2.6%, due 8/1/22 (6)47,721,252 9,330,903 3,030,817 6,300,086 3,109,618
2004 State Water Resources Loan, 2.5%, due 1/1/27 (6)21,258,529 7,722,677 1,208,985 6,513,692 1,239,209
2008 State Water Resources Loan, 2.4%, (7)9,164,505 4,648,492 468,873 4,179,619 480,127
2018 State Water Resources Loan, 1.8% (8)53,403,000 28,448,535 $15,038,527 43,487,062
Total Direct Borrowing 131,547,286 50,150,607 15,038,527 4,708,675 60,480,459 4,828,954
Net Business-Type Long-Term Debt $137,547,286 $52,805,607 $15,038,527 $5,038,675 $62,805,459 $5,173,954
(1)2020A Lease Revenue Bonds – In February 2020, the City of South San Francisco Public
Facilities Financing Authority entered into a $43.9 million lease agreement to finance costs of the
acquisition, construction, and installation of certain capital improvements constituting the new
City police station, located within the City’s new Civic Center Campus, and related
improvements, facilities and equipment, and pay the costs incurred in connection with the
issuance of the Series 2020A Bonds. The Series 2020A Bonds are equally and ratably payable
from base rental payments to be made by the City for the right to use certain real property
consisting of a City-owned parking garage and a City-owned park. The lease agreement contains
provisions that in an event of default, the lessor may exercise any and all remedies available to it
under the lease agreement, including the right to enforce the terms of the lease.
72
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 5 - LONG-TERM DEBT (Continued)
(2)2021A Lease Revenue Bonds – In May 2021, the City of South San Francisco Public
Facilities Financing Authority entered into a $86.4 million lease agreement to finance costs of the
acquisition, construction, and installation of certain capital improvements constituting a new City
library, council chamber, parks and recreation facilities, and a community theater to be located
within the City’s new Civic Center Campus, street and roadway improvements located within the
City, solar equipment to be located on City property, and related improvements, facilities and
equipment, and pay the costs incurred in connection with the issuance of the Series 2021A Bonds.
The Series 2021A Bonds are equally and ratably payable from base rental payments to be made
by the City for the right to use certain real property consisting of the same City-owned parking
garage and City-owned park pledged under the 2020A Bonds and six additional properties,
including the property on which the first two phases of the Community Civic Campus project is
being constructed. The lease agreement contains provisions that in an event of default, the lessor
may exercise any and all remedies available to it under the lease agreement, including the right to
enforce the terms of the lease.
(3) As of June 30, 2021, the Oyster Point Improvements Impact Fund owed the Successor Agency
(formerly the Merged Redevelopment Project Area Capital Project Fund) for developer fees in the
amount of $3,595,152 for the Flyover and Hookramps Projects that were completed in prior years.
The outstanding balance will be paid off from the future developer fees. With the dissolution of the
Agency effective January 31, 2012, the Successor Agency assumed the asset which the City is to
repay. This payable is recorded as a long-term obligation (see also Note 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.
73
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 5 - LONG-TERM DEBT (Continued)
(4) 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.
(5) On October 25, 2005, the California Statewide Communities Development Authority issued
2005D Water and Wastewater Revenue Bonds. The City participated in the pooled bond sale
and the City’s portion of the debt is $6,000,000. Proceeds were used to finance sewer system
capital improvement.
The principal payments on the debt commenced in October 2006 and principal is due each
October 1. The final principal payment is due on October 1, 2026. Interest payments ranging
from the rates of 2.75% to 4.75% are payable semi-annually each April 1 and October 1.
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 $13.3 million which represented coverage of 2.6
over the $5,124,491 in total debt service.
(6) 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.
(7)2008 State Water Resources Control Board Loan – In November 2007, the City approved
the $11.8 million loan agreement with the SWRCB to finance the City’s Wet Weather Program
project. Under the terms of the contract, the City has agreed to repay $11.8 million to the State in
exchange for receiving $9.2 million in proceeds to be used to fund the Project. The difference
between the repayment obligation and proceeds amounted to $2.6 million and represents in-
substance interest on the outstanding balance. Debt service payments commenced on August 15,
2009.
74
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 5 - LONG-TERM DEBT (Continued)
(8)2018 State Water Resources Control Board Loan – In September 2018, the City entered into a
$53.4 million loan agreement with the SWRCB to finance the South San Francisco/San Bruno’s
Water Quality Control Plant Wet Weather and Digester Project. A portion of this amount, $4 million,
is anticipated to be forgiven on the date of completion of construction. For the remaining $49.4
million, under the terms of the loan agreement the City has agreed to repay $59.2 million to the
State. The difference between the repayment obligation and proceeds amounted to $9.8 million
and represents in-substance interest on the outstanding balance.
As of June 30,2021, the City has drawn down $43.5 million from SWRCB, with the remaining
balance of $9.9 million expected to be drawn down in fiscal year 2022. There was no debt service
payment required in fiscal year 2021, with the first debt service payment due in fiscal year ending
2024. Future debt service is expected to average $3 million per year through fiscal year 2043.
In the event default has occurred, the City shall, upon demand, immediately accelerate the
payment of all principal owed under this loan agreement, if any, which shall be immediately due
and payable; pay interest at the highest legal rate on all amounts owed; and pay any additional
payments as defined in the loan agreement.
The 2008 and 2018 loans are secured by a pledge of sewer service charge revenues of the City’s
Sewer Enterprise Fund. Sewer service charge revenues available for debt service amounted to
$24.5 million which represented coverage of 45.9 over the $533,952 in debt service.
B. Debt Service Requirements
Annual debt service requirements are shown below for all long-term debt with specified
repayment terms:
Governmental Activities Business-Type Activities
For the Year Lease Revenue Bonds
2005 Water and
Wastewater Revenue Bonds
Ended June 30 Principal Interest Principal Interest
2022 $3,190,000 $5,097,833 $345,000 $106,331
2023 3,185,000 5,104,450 360,000 90,000
2024 3,320,000 4,966,750 375,000 71,625
2025 3,465,000 4,823,150 395,000 52,375
2026 3,615,000 4,673,200 415,000 32,125
2027-2031 20,475,000 20,960,700 435,000 10,875
2032-2036 24,920,000 16,510,800
2037-2041 30,320,000 11,111,400
2042-2046 36,890,000 4,542,600
129,380,000 $77,790,883 $2,325,000 $363,331
Plus: Unamortized bond premium 27,600,389
$156,980,389
75
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 5 - LONG-TERM DEBT (Continued)
Future debt service requirements, including interest and capital leases, but excluding the 2007
Loan payable to the Redevelopment Successor Agency and the 2018 State Water Resources Loan
at June 30, 2021, were as follows:
For the Year Governmental Activities Business-Type Activities
Ended June 30 Principal Interest Principal Interest
2022 $140,892 $6,614 $4,828,954 $385,159
2023 144,637 2,870 4,952,309 266,607
2024 1,805,393 145,017
2025 1,850,025 105,421
2026 1,895,761 64,842
2027-2031 1,660,955 46,874
Totals 285,529 $9,484 16,993,397 $1,013,920
2007 Loans Payable 3,595,152
2018 State Water Resources Loan 43,487,062
$3,880,681 $60,480,459
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 $5,842,799
C. Legal Debt Margin
The City is subject to a debt limit that is 3.75% of the total assessed value of property, net of
exempt real property. At June 30, 2021, that amount was $870,065,495. As of June 30, 2021, the
City did not have any outstanding debt applicable to the limit.
76
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
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 generally accepted accounting
principles which require the City to classify its fund balances based on spending constraints
imposed on the use of resources.
For programs with multiple funding sources, the City prioritizes and expends funds in the
following order: Restricted, Committed, Assigned, and Unassigned. Each category in the
following hierarchy is ranked according to the degree of spending constraint.
Nonspendables represents balances set aside to indicate items do not represent available,
spendable resources even though they are a component of assets. Fund balances required to be
maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such
as prepaids, notes receivable, and land held for redevelopment are included. However, if
proceeds realized from the sale or collection of nonspendable assets are restricted, committed or
assigned, then Nonspendable amounts are required to be presented as a component of the
applicable category.
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors,
laws, regulations, or enabling legislation which requires the resources to be used only for a
specific purpose. Nonspendable amounts subject to restrictions are included along with spendable
resources.
Committed fund balances have constraints imposed by Council Resolution of the City Council
which may be altered only by Council Resolution of the City Council. Nonspendable amounts
subject to council commitments are included along with spendable resources.
77
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
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, 2021, are below:
Low and Moderate East of 101
General Income Housing Capital Sewer Traffic
Fund Balance Classifications Fund Assets Improvement Impact Fees Impact Fees
Nonspendables:
Items not in spendable form:
Inventory and prepaid items $4,099
Total Nonspendable Fund Balances 4,099
Restricted for:
Sewer Impact Fees $4,144,279
Traffic impact fees projects $24,490,310
Civic campus projects $26,000,000
Low and moderate housing projects $3,225,194
Redevelopment and community development activities 16,354,141
Total Restricted Fund Balances 16,354,141 3,225,194 26,000,000 4,144,279 24,490,310
Committed for:
Capital projects 4,451,157
Local services 7,921,045
Total Committed Fund Balances 12,372,202
Assigned to:
Capital projects 5,431,178 250,442
Total Assigned Fund Balances 5,431,178 250,442
Unassigned:
General fund 41,597,381
Total Unassigned Fund Balances 41,597,381
Total Fund Balances $75,759,001 $3,225,194 $26,250,442 $4,144,279 $24,490,310
Capital Project Funds
78
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 6 - NET POSITION AND FUND BALANCE (Continued)
Capital Capital Capital Other
Child Care Developer Infrastructure Improvements Improvements Governmental
Fund Balance Classifications (continued) Impact Fees Deposit Reserve Fund Police Station Civic Campus Funds
Restricted for:
Child Care impact fees projects $6,788,326
Developer deposit fees projects
Police station projects $6,788,648
Civic campus projects $77,975,133
Gas Tax projects $330,272
Developer contributions projects 6,444,901
Community Development Block Grant projects 108,386
Maintenance districts projects 4,816,402
Transportation sales tax projects 2,524,599
City programs projects 11,401,167
Other Special Revenues projects 6,588,671
Capital projects activities 26,594,319
Total Restricted Fund Balances 6,788,326 6,788,648 77,975,133 58,808,717
Assigned to:
Capital infrastructure projects $25,894,620
Total Assigned Fund Balances 25,894,620
Total Fund Balances $6,788,326 $25,894,620 $6,788,648 $77,975,133 $58,808,717
Capital Project Funds
C. Encumbrances
The City uses an encumbrance system as an extension of normal budgetary accounting for
governmental funds. Under this system, purchase orders, contracts, and other commitments for
the expenditure of monies are recorded in order to reserve that portion of applicable
appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed or
assigned fund balance, depending on the classification of the resources to be used to liquidate the
encumbrance, since they do not constitute expenditures or liabilities. Unexpended appropriations
lapse at year-end and must be reappropriated in the following year. Encumbrances outstanding in
governmental funds as of June 30, 2021, were as listed below:
Governmental funds:Amount
General Fund $5,581,180
Capital Improvement Capital Projects Fund 11,563,114
Capital Infrastructure Reserve Capital Projects Fund 963,000
Capital Improvements Police Station Capital Projects Fund 6,029,988
Capital Improvements Civic Campus Capital Projects Fund 2,241,848
Other Governmental Funds 1,769,105
Total $28,148,235
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.
79
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 7 - PENSION PLAN (Continued)
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.
The Plans’ provisions and benefits in effect at June 30, 2021, are summarized as follows:
Miscellaneous
Classic Plan* Tier 2 Plan*PEPRA Plan
Prior to After On or after
Hire date April 25, 2010 April 25, 2010 January 1,2013
Benefit formula 2.7% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 50 - 55 50 - 67 52 - 67
Monthly benefits, as a % of eligible compensation 2.0% to 2.7% 1.092% to 2.418% 1.0% to 2.5%
Required employee contribution rates 8%7%6.5%
Required employer contribution rates 10.277%10.277%10.277%
Required Unfunded Actuarial Liability Contribution $5,845,814
*Effective July 2020, Classic Plan members in the Executive Management Unit were required to pay an additional 1% for their
share of pension costs.
Safety
Classic Plan Tier 2 Plan PEPRA Plan
Hire date Prior to
April 25, 2010
After
April 25, 2010
On or after
January 1, 2013
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service
Benefit payments monthly for life monthly for life monthly for life
Retirement age 50 50 - 55 50 - 57
Monthly benefits, as a % of eligible compensation 3% 2.4% to 3.0% 2.0% to 2.7%
Required employee contribution rates 9%9%11.5%
Required employer contribution rates 21.214%21.214%21.214%
Required Unfunded Actuarial Liability Contribution $7,829,383
80
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 7 - PENSION PLAN (Continued)
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a
percentage of payroll for the normal cost portion as noted in the rates above and as a dollar
amount for contributions toward the unfunded liability (UAL). The dollar amounts are billed on a
monthly basis or the City can elect a lump sum payment option. The City’s required contributions
for the unfunded liability in the Miscellaneous and Safety Plans for the year ended June 30, 2021
were $5,845,814 and $7,829,383, respectively, which were made under the lump sum payment
option.
Employees Covered – As of the June 30, 2019 actuarial valuation date and the June 30, 2020
measurement date, the following employees were covered by the benefit terms for the Plans:
Miscellaneous Safety
Inactive employees or beneficiaries currently receiving benefits 473 291
Inactive employees entitled to but not yet receiving benefits 381 106
Active employees 290 163
Total 1,144 560
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.
B. Net Pension Liability
The City’s net pension liability for each Plan is measured as the total pension liability, less the
pension plan’s fiduciary net position. The net pension liability of each Plan is measured as of
June 30, 2020, using an annual actuarial valuation as of June 30, 2019 rolled forward to June 30,
2020 using standard update procedures. A summary of principal assumptions and methods used
to determine the net pension liability is shown below.
81
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 7 - PENSION PLAN (Continued)
Actuarial Assumptions – The total pension liabilities as of the June 30, 2020 measurement date
were based on the following actuarial assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Payroll Growth
Salary Increase
Investment Rate of Return
Mortality
Post Retirement Benefit Increase
(1) Actuarial assumptions are the same for all benefi tiers (Classic Tier 1, Classic Tier II, and PEPRA)
(2) Depending on age, service and type of employment.
(3) Net of pension plan investment expenses, including inflation.
(4) The mortality table used was developed based on CalPERS' specific data. The probabilities of mortality are
based on the 2017CalPERS Experience Study forthe period from1997to 2015. Pre-retirement and post-retirement
mortality rates include 15years ofprojected mortality improvement using 90% ofScale MP-2016published by the
Society of Actuaries. For more details on this table, please refer to the CalPERSExperience Study and Reviewof
Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.
2.50%
(2)
7.15% (3)
The lesser of contract COLA or 2.50% until Purchasing Power Protection
Allowance Floor on Purchasing Power applies, 2.50% thereafter
Derived using CalPERS Membership Data for all Funds (4)
2.75%
Miscellaneous and Safety (1)
6/30/2019
6/30/2020
Entry-Age Normal Cost Method
7.15%
The underlying mortality assumptions and all other actuarial assumptions used in the June 30,
2019 valuation were based on the results of a December 2017 actuarial experience study for the
period 1997 to 2015. Further details of the Experience Study can be found on the CalPERS
website.
Discount Rate – The discount rate used to measure the total pension liability was 7.15%. The
projection of cash flows used to determine the discount rate for each Plan assumed that
contributions from all plan members in the Public Employees Retirement Fund (PERF) will be
made at the current member contribution rates and that contributions from employers will be
made at statutorily required rates, actuarially determined. Based on those assumptions, each
Plan’s fiduciary net position was projected to be available to make all projected future benefits
payments of current plan members for all plans in the PERF. Therefore, the long- term expected
rate of return on plan investment was applied to all periods of projected benefit payment to
determine the total pension liability for each Plan.
The long- term expected rate of return on pension plan investments was determined using a
building- block method in which expected future real rates of return (expected returns, net of
pension plan investment expense and inflation) are developed for each major asset class.
82
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 7 - PENSION PLAN (Continued)
In determining the long- term expected rate of return, CalPERS took into account both short- term
and long- term market return expectations as well as the expected pension fund cash flows. Using
historical returns of all the fund’s asset classes, expected compound (geometric) returns were
calculated over the short- term (first 10 years) and the long -term (11+ years) using a building-
block approach. Using the expected nominal returns for both short- term and long- term, the
present value of benefits was calculated for each fund. The expected rate of return was set by
calculating the rounded single equivalent expected return that arrived at the same present value of
benefits for cash flows as the one calculated using both short- term and long- term returns. The
expected rate of return was then set equal to the single equivalent rate calculated above and
adjusted for assumed administrative expenses.
The table below reflects the long-term expected real rates of return by asset class.
Asset Class(a)
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 CalPERS's Comprehensive Annual Financial Reports, Fixed income is included in
Global Debt Securities; Liquidity is included in short-term Investments; Inflation Assets are
included in both Global Equity Securities and Global Debt Securities.
(b)An expected inflation of 2.0% used for this period.
(c)An expected inflation of 2.92% used for this period.
83
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
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, 2019 (Measurement Date)$244,816,128 $163,510,764 $81,305,364
Changes in the year:
Service cost 4,267,487 4,267,487
Interest on the total pension liability 17,306,781 17,306,781
Changes of benefit terms
Chases of assumptions
Differences between actual and expected experience 1,771,483 1,771,483
Plan to plan resource movement (32) 32
Contribution - employer 7,823,463 (7,823,463)
Contribution - employees 1,883,698 (1,883,698)
Net investment income 8,084,207 (8,084,207)
Benefit payments, including refunds of employee
contributions (13,336,957) (13,336,957)
Administrative expenses (230,510) 230,510
Other Miscellaneous Income/(Expense)
Net changes 10,008,794 4,223,869 5,784,925
Balance at June 30, 2020 (Measurement Date)$254,824,922 $167,734,633 $87,090,289
Safety Plan:
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2019 (Measurement Date)$343,645,905 $231,869,470 $111,776,435
Changes in the year:
Service cost 6,880,000 6,880,000
Interest on the total pension liability 24,284,010 24,284,010
Changes of benefit terms
Chases of assumptions
Differences between actual and expected experience 742,624 742,624
Plan to plan resource movement 32 (32)
Contribution - employer 11,402,434 (11,402,434)
Contribution - employees 2,890,991 (2,890,991)
Net investment income 11,506,885 (11,506,885)
Benefit payments, including refunds of employee
contributions (16,384,059) (16,384,059)
Administrative expenses (326,879) 326,879
Other Miscellaneous Income/(Expense)
Net changes 15,522,575 9,089,404 6,433,171
Balance at June 30, 2020 (Measurement Date)$359,168,480 $240,958,874 $118,209,606
Grand Total - Both Plans $613,993,402 $408,693,507 $205,299,895
84
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
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 $119,735,409 $166,899,641
Current Discount Rate 7.15% 7.15%
Net Pension Liability $87,090,289 $118,209,606
1% Increase 8.15% 8.15%
Net Pension Liability $60,053,403 $78,199,917
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, 2021, the City recognized pension expense of $11,032,435 and
$17,164,451 for the Miscellaneous and Safety Plans, respectively, for total pension expense of
$28,196,886. At June 30, 2021, the City reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Miscellaneous Plan:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $8,616,536
Changes of assumptions
Differences between actual and expected experience 1,930,792
Net differences between projected and actual earnings on
plan investments 1,303,366
Total $11,850,694 $0
Safety Plan:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $12,413,770
Changes of assumptions ($152,187)
Differences between actual and expected experience 1,742,850
Net differences between projected and actual earnings on
plan investments 2,058,777
Total $16,215,397 ($152,187)
Grand Total $28,066,091 ($152,187)
85
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 7 - PENSION PLAN (Continued)
$21,030,306 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, 2022. 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
2022 $762,512
2023 926,075
2024 856,702
2025 688,869
Safety Plan:
Year Ended Annual
June 30 Amortization
2022 $228,393
2023 1,116,594
2024 1,310,769
2025 993,684
E.Subsequent Event – Reduction of CalPERS Discount Rates
In July 2021, CalPERS reported a preliminary 21.3% net return on investments for the 12-month
period that ended June 30, 2021. Under the Funding Risk Mitigation Policy, approved by the
CalPERS Board of Administration in 2015, the 21.3% net return will trigger a reduction in the
discount rate used to calculate employer and Public Employees' Pension Reform Act (PEPRA)
member contributions. The Funding Risk Mitigation Policy seeks to reduce CalPERS funding
risk over time, in which CalPERS investment performance that significantly outperforms the
discount rate will trigger adjustments to the discount rate, expected investment return, and
strategic asset allocation targets. This is the first time it has been triggered. The discount rate, or
assumed rate of return, will drop to 6.8%, from its current level of 7%.
Based on these preliminary fiscal year returns, the CalPERS has announced the funded status of
the overall Public Employees Retirement Fund (PERF) is an estimated 82%. This estimate is
based on a 7% discount rate. Under the new 6.8% discount rate, however, CalPERS indicated the
funded status of the overall PERF drops to 80%. This is because existing assets are assumed to
grow at a slightly slower rate annually into the future. As intended under the Funding Risk
Mitigation Policy, the lower discount rate increases the likelihood that CalPERS can reach its
target over the longer term. The CalPERS Board of Administration will continue to review the
discount rate through its Asset Liability Management process during the rest of the calendar year.
CalPERS' final fiscal year 2021 investment performance will be calculated based on audited
figures and will be reflected in contribution levels for contracting cities, counties, and special
districts in fiscal year 2024.
86
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 8 - DEFERRED COMPENSATION PLAN
City employees may defer a portion of their compensation under a City sponsored Deferred
Compensation Plan created in accordance with Internal Revenue Code Section 457. Under this
Plan, participants are not taxed on the deferred portion of their compensation until it is distributed
to them; distributions may be made only at termination, retirement, death or in an emergency as
defined by the Plan.
The laws governing deferred compensation plan assets require plan assets to be held by a Trust
for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under
these plans are not the City’s property and are not subject to City control, they have been
excluded from these financial statements.
NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS
A.General Information about the City’s Other Post Employment Benefit (OPEB) Plans
The City provides certain health care benefits for all employees who retire after attaining age 50
with at least five years of service or disability at any age. The City provides certain health care
benefits for those employees hired prior to April 25, 2010. In order to reduce the City’s OPEB
obligations over time, the City changed to a defined contribution post-retirement health plan for
employees hired as of April 25, 2010 or after. For those new hires, the City is now providing a
medical after retirement health plan (MARA), and contributes 1.5% of salary for those
employees.
B.Defined Benefit Plan Description
The City’s Post Employment Benefit Plan for employees hired prior to April 25, 2010 is an agent
multiple-employer defined benefit OPEB plan.
The City joined the California Employers’ Retiree Benefit Trust (CERBT), an agent multiple-
employer plan administered by CalPERS, consisting of an aggregation of single-employer
plans. The CERBT issues a publicly available financial report that includes financial statements
and required supplementary information. That report may be obtained from the California Public
Employees’ Retirement System, CERBT, P.O. Box 942703, Sacramento, CA 94229-2703.
87
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS (Continued)
Benefits provided – The following is a summary of Plan benefits by employee group as of June 30,
2020:
Eligibility • Hired < 4/25/2010
• Retire directly from City and elect coverage:
• A ge 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 2019/20:
- $1,430.80/month pre-65 (Blue Shield)
- $785.04/month post-65 Medicare eligible (Blue Shield)
- $1,971.53/ month post-65 not Medicare eligible (Kaiser)
• Medicare ineligible retirees allowed to stay in their pre-Medicare premium plans
after age 65
Surviving Spouse Benefit • Participation with premium payment
• AFSCME, Local 1569, Mid-Management, IAFF
surviving spouses covered 2 months following death of retiree
Other OPEB • City also reimburses Medicare Part B
• No City-paid contribution for dental, vision, or life
For the year ended June 30, 2021, the City’s contributions to the Plan were $4,810,361.
Employees Covered by Benefit Terms – Membership in the plan consisted of the following at the
measurement date of June 30, 2020:
Active employees 196
Inactive employees or beneficiaries currently
receiving benefit payments 360
Total 556
C.OPEB Liabilities, OPEB Expenses, and Deferred Outflows/Inflows of Resources Related to
OPEB
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred
inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net
position of the City’s OPEB Plan and additions to/deductions from the OPEB Plan’s fiduciary net
position have been determined on the same basis as they are reported by the California
Employers’ Retiree Benefit Trust (CERBT). For this purpose, benefit payments are recognized
when currently due and payable in accordance with the benefit terms. Investments are reported at
fair value.
88
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS (Continued)
D. Net OPEB Liability
Actuarial Methods and Assumptions – The City’s net OPEB liability was measured as of June
30, 2020 and the total OPEB liability used to calculate the net OPEB liability was determined by
an actuarial valuation dated June 30, 2019, rolled forward to June 30, 2020 using standard
updated procedures, based on the following actuarial methods and assumptions:
Valuation Date • June 30, 2019
Measurement Date • June 30, 2020
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 22 years remaining for 2020/21
• 6.75% at June 30, 2020
• 6.75% at June 30, 2019
• Expected City contributions projected to keep sufficient plan assets to
pay all benefits from trust.
Inflation • 2.75% per annum
Salary Increases • Aggregate - 3% annually
• Merit - CalPERS 1997-2015 Experience Study
Healthcare/Medical Trend • Non-Medicare - 7% for 2022, decreasing to an ultimate rate of 4.0% in
2076 and later years
• Medicare - 6.1%% for 2022, decreasing to an ultimate rate of 4.0% in
2076 and later years
Mortality, Retirement, Disability, Termination • CalPERS 1997-2015 Experience Study
Mortality Improvement • Mortality projected fully generational with Scale MP-2019
Healthcare participation for future retirees • 100% if covered, 95% if waived
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 59.0% 4.82%
Fixed income 25.0% 1.47%
TIPS 5.0% 1.29%
Commodities 3.0% 0.84%
REITs 8.0% 3.76%
Total 100.0%
89
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
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.
E. Changes in Net OPEB Liability
The changes in the net OPEB liability follows:
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (a) - (b)
Balance at June 30, 2018 Measurement Date $88,596,000 $24,240,000 $64,356,000
Changes Recognized for the Measurement Period:
Service Cost 1,604,244 1,604,244
Interest on the total OPEB liability 5,951,761 5,951,761
Changes in benefit terms
Differences between expected and actual experience
Changes of assumptions (1,858,796) (1,858,796)
Contributions from the employer 4,854,000 (4,854,000)
Net investment income 838,481 (838,481)
Benefit payments (4,052,000) (4,052,000)
Administrative expenses (11,868) 11,868
Net changes 1,645,209 1,628,613 16,596
Balance at June 20, 2019 Measurement Date $90,241,209 $25,868,613 $64,372,596
Increase (Decrease)
F.Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost
Trend Rates
The following presents the net OPEB liability of the City, as well as what the City's net OPEB
liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.75%)
or 1-percentage-point higher (7.75%) than the current discount rate:
Net OPEB Liability/(Asset)
Discount Rate -1% Current Discount Rate Discount Rate +1%
(5.75%) (6.75%) (7.75%)
$76,569,553 $64,372,596 $54,326,961
The following presents the net OPEB liability of the City, as well as what the City's net OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point
lower or 1-percentage-point higher than the current healthcare cost trend rates as discussed in the
assumptions above:
Net OPEB Liability/(Asset)
Current Healthcare Cost
1% Decrease Trend Rates 1% Increase
$52,802,929 $64,372,596 $78,567,339
90
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS (Continued)
G.OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 201, the City recognized OPEB expense of $6,003,065. At June 30,
2021, 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 $4,810,361
Differences between actual and expected experience 1,309,000
Changes of assumptions ($1,575,922)
Net differences between projected and actual earnings on
plan investments 490,453
Total $6,609,814 ($1,575,922)
$4,810,361 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,
2022. 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
2022 $72,239
2023 (72,761)
2024 63,939
2025 160,114
H.Defined Contribution Plan Description
The City of South San Francisco funded HRA Plan is a defined contribution OPEB plan for
employees hired on or after April 25, 2010. For those new hires, the City provides a medical after
retirement health plan (MARA), and contributes 1.5% of salary for those employees. In addition,
employees contribute to the MARA plan as directed by their respective bargaining unit’s
Memorandum of Understanding or compensation plan.
The plan is administered by Matrix Trust Company. Employee contributions for the fiscal year
totaled $478,173. Employer contributions of $425,683 were paid into the Defined Contribution
Plan. No liability for the defined contribution has been included in the report since the City fully
paid the annual required contribution. Since the assets held under this plan are not the City’s
property and are not subject to claims by general creditors of the City, the assets have been
excluded from these financial statements.
91
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
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.
B.Peninsula Traffic Congestion Relief Alliance (PTCRA)
PTCRA was formed from the merger of the Inter City Transportation Systems Management
Agency and Multi-City Transportation Systems Management Agency (MCTSMA) in 2000. The
members are the cities of South San Francisco, Brisbane, Colma, Daly City, Half Moon Bay,
Millbrae, Pacifica and San Bruno and seven other members for the purpose of mitigating traffic
congestion. The governing board consists of one council member from each member city. The
finance director of the City of San Carlos acts as the treasurer and controller of PTCRA. The
individual cities are not liable for the debts, liabilities or obligations of PTCRA. Each member
city has an equal interest in PTCRA. Condensed accrual basis unaudited financial information
may be obtained from the City of San Carlos Finance Department, 666 Elm Street, San Carlos,
CA 94070.
C.City/County Association of Governments (C/CAG)
C/CAG was established in 1990 by the County of San Mateo and the Cities of San Mateo County
for preparation, adoption, monitoring and enforcing of Countywide state mandated plans. A Board
of Directors consisting of one council member from each member city and one member from the
County Board of Supervisors governs C/CAG. The city treasurer of San Carlos acts as the treasurer
of C/CAG. The individual cities and the County are not liable for the debts, liabilities, or obligations
of C/CAG. Condensed unaudited cash basis financial information may be obtained from the City of
San Carlos Finance Department, 666 Elm Street, San Carlos, CA 94070.
92
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
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, 2021, the City paid PLAN JPA $1,752,289 in premiums and did not receive a refund of
premiums paid in prior years. Financial statements may be obtained from PLAN JPA 1750
Creekside Oaks Drive, Suite 200, Sacramento, CA 95833.
The City has also purchased excess coverage insurance for worker’s compensation claims from
Public Risk, Innovation, Solutions and Management (PRISM) (formerly CSAC Excess Insurance
Authority (CSAC-EIA)). PRISM provides coverage up to statutory limits in excess of the City’s
$500,000 self-insured retention. For the past five fiscal years, general liability and worker
compensation settlements did not exceed insurance coverage.
B. Liability for Uninsured Claims
The City provides for the uninsured portion of claims and judgments in the Self Insurance
Internal Service Fund. Claims and judgments, including a provision for claims incurred but not
reported, are recorded when a loss is deemed probable of assertion and the amount of the loss is
reasonably determinable. As discussed above, the City has coverage for such claims, but it has
retained the risk for the deductible or uninsured portion of these claims.
The City’s liability for uninsured claims is limited to workers’ compensation and general liability
claims, as discussed above, and was estimated by management based on prior year’s claims
experience as follows:
June 30, 2021 Fiscal Year
Workers' General 2019-2020
Compensation Liability Total Total
Balance, beginning of year $14,884,000 $81,224 $14,965,224 $14,451,253
Current year claims and changes in
estimates of prior years claims 3,612,071 25,534 3,637,605 2,969,958
Claims Paid (2,800,071) (52,961) (2,853,032) (2,455,987)
Balance, end of year $15,696,000 $53,797 $15,749,797 $14,965,224
Current portion $2,825,000 $53,797 $2,878,797 $643,224
93
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 12 - COMMITMENTS AND CONTINGENCIES
A. Litigation
The City is subject to litigation arising in the normal course of business. In the opinion of the
City Attorney there is no pending litigation which is likely to have a material adverse effect on
the financial position of the City.
B. Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs have been audited by
the City’s independent auditors in accordance with the provisions of the Federal Single Audit Act
as amended and applicable State requirements. No cost disallowances were proposed as a result
of these audits; however, these programs are still subject to further examination by the grantors
and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot
be determined at this time. The City expects such amounts, if any, to be immaterial.
C. 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, 2021 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
2022 $420,000
2023 420,000
2024 420,000
2025 420,000
2026 420,000
2027-2029 1,085,000
T otal $3,185,000
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 2021, 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 2021, lease payments were $51,800.
94
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
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
2022 $400,000 $51,800 $451,800
2023 400,000 51,800 451,800
2024 400,000 51,800 451,800
2025 400,000 51,800 451,800
2026 400,000 51,800 451,800
2027-2031 2,000,000 259,000 2,259,000
2032-2036 1,200,000 259,000 1,459,000
2037-2041 259,000 259,000
2042-2046 259,000 259,000
2047-2051 259,000 259,000
2052-2056 259,000 259,000
2057-2061 259,000 259,000
2062 51,800 51,800
$5,200,000 $2,123,800 $7,323,800
D.Miller Parking Garage
The Miller Parking Garage (“Parking Garage)”, constructed in 2011, is located at 329 Miller
Avenue in the City. The Parking Garage consists of a five-level open-air concrete structure
building of approximately 100,000 square feet with 244 parking spaces. Approximately 14,350
square feet of commercial and office space (the “Commercial Space”) is located on the ground
floor of the Parking Garage.
In February 2020, the City sold the Commercial Space for $1,247,950. In connection with the
sale of the Commercial Space, a condominium map was recorded with the County to create
separate assessor parcel numbers for the Commercial Space and the balance of the property
included within the Parking Garage. No rights to the parking spaces were granted to the owners
of the Commercial Space in connection with its sale. However, the owners of the Commercial
Space may use such spaces upon payment to the City of the applicable parking fees.
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.
On July 1, 2018, the duties of the South San Francisco Oversight Board transferred to a new San
Mateo Countywide Oversight Board, which will now be responsible for overseeing the winddown
affairs of all Successor Agencies in San Mateo County, including the Successor Agency to the
South San Francisco Redevelopment Agency.
Information presented in the following footnotes represents assets and liabilities of the Successor
Agency.
95
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 13 - FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
A. Cash and Investments
Cash and investments of the Successor Agency as of June 30, 2021 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, 2021.
B. Loans Receivable
The Successor Agency assumed the non-housing loans receivable of the former Redevelopment
Agency as of February 1, 2012. The former Redevelopment Agency engaged in programs
designed to encourage construction of or improvement to low-to-moderate income housing.
Under these programs, grants or loans were provided to homeowners or developers who agreed to
expend these funds in accordance with the Agency’s terms.
C. Capital Assets
The Successor Agency assumed the capital assets of the former Redevelopment Agency as of
February 1, 2012. All capital assets are valued at historical cost or estimated historical cost if
actual historical cost is not available. Contributed capital assets are valued at their acquisition
value. The Successor Agency’s policy is to capitalize all assets with costs exceeding certain
minimum thresholds and with useful lives exceeding two years.
All capital assets with limited useful lives are depreciated over their estimated useful lives. The
purpose of depreciation is to spread the cost of capital assets equitably among all users over the
life of these assets. The amount charged to depreciation expense each year represents that year’s
pro rata share of the cost of capital assets.
Depreciation of all capital assets is charged as an expense against operations each year and the
total amount of depreciation taken over the years, called accumulated depreciation, is reported on
the balance sheet as a reduction in the book value of capital assets.
Depreciation is provided using the straight line method which means the cost of the asset is
divided by its expected useful life in years and the result is charged to expense each year until the
asset is fully depreciated. The Successor Agency has assigned the useful lives listed below to
capital assets:
Buildings 50 years
Improvements 30 years
Machinery and equipment 5-20 years
Furniture and fixtures 12 years
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase is reflected in the capitalized value of the asset
constructed, net of interest earned on the invested proceeds over the same period. The
capitalization level is $20,000 for vehicles, and $100,000 for all else, including all other
equipment that is not a vehicle.
96
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 13 - FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
Capital assets recorded at June 30 are comprised of:
Balance Balance
June 30, 2020 Retirement June 30, 2021
Fiduciary activities
Capital assets not being depreciated:
Land $111,219 $111,219
Total capital assets not
being depreciated 111,219 111,219
Capital assets being depreciated:
Buildings and Improvements 329,671 329,671
Equipment and Vehicle 242,190 242,190
Furniture and Fixtures 21,506 21,506
Total capital assets being depreciated 593,367 593,367
Less accumulated depreciation for:
Buildings and Improvements (78,360) ($6,593) (84,953)
Equipment and Vehicle (242,190)(242,190)
Furniture and Fixtures (21,506)(21,506)
Total accumulated depreciation (342,056) (6,593) (348,649)
Net capital assets being depreciated 251,311 (6,593) 244,718
Fiduciary activity capital assets, net $362,530 ($6,593) $355,937
D. POLLUTION REMEDIATION
In fiscal year 2009-10, the former Redevelopment Agency purchased an unimproved parcel
adjacent to the Caltrain Commuter Rail station from the State of California. The Successor
Agency’s purchase includes use of the 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 from the 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 with respect to the previous existence of
underground petroleum storage tanks. This amount was recorded in the Successor Agency
accounts in fiscal year 2011-12 as a liability for future remediation efforts. In fiscal year 2013-14,
it was determined by the San Mateo County Health System, in response to investigative reports
provided and corrective action by the City of South San Francisco, that no further remediation
action with respect to the petroleum tanks was required. In fiscal year 2020-21, the City released
the liability from the Successor Agency accounts.
97
CITY OF SOUTH SAN FRANCISCO
NOTES TO BASIC FINANCIALS STATEMENTS
For the Fiscal Year Ended June 30, 2021
NOTE 13 - FORMER REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR
AGENCY ACTIVITIES (Continued)
E. DEFEASED BONDS
As of June 30, 2021, the outstanding balance of defeased debt was $4,445,000 for the 1997
Downtown /Central Redevelopment Tax Allocation Bonds.
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.
State Asset Transfer Review
The activities of the former Redevelopment Agency and the Successor Agency were also subject
to further examination by the State of California. The State Controller’s Office conducted a
review of the propriety of asset transfers between the former Redevelopment Agency or the
Successor Agency and any public agency that occurred on or after January 1, 2011. The results of
that review were issued in July 2015 and although the review did identify ineligible transfers of
assets from the former Redevelopment Agency to the City, the report reflected the current year
and prior year transfers and made no further demands for the return of assets to the Successor
Agency.
98
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2021
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020
Total Pension Liability
Service cost $3,449,973 $3,075,813 $3,079,994 $3,922,518 $4,001,207 $4,118,735 $4,267,487
Interest on total pension liability 13,930,544 14,393,013 14,870,988 15,430,998 15,885,315 16,624,514 17,306,781
Changes of benefit terms
Changes of assumptions (3,374,655)12,421,358 (1,361,078)
Difference between expected and actual experience (1,567,798) (476,337) 1,958,164 187,342 2,853,948 1,771,483
Benefit payments, including refunds of employee
contributions (9,287,975) (10,407,243) (11,085,829) (11,565,392) (12,164,689) (12,756,888) (13,336,957)
Net change in total pension liability 8,092,542 2,119,130 6,388,816 22,167,646 6,548,097 10,840,309 10,008,794
Total pension liability - beginning 188,659,588 196,752,130 198,871,260 205,260,076 227,427,722 233,975,819 244,816,128
Total pension liability - ending (a)$196,752,130 $198,871,260 $205,260,076 $227,427,722 $233,975,819 $244,816,128 $254,824,922
Plan fiduciary net position
Contributions - employer $4,235,454 $4,546,984 $5,726,981 $5,228,454 $6,165,764 $6,851,659 $7,823,463
Contributions - employee 1,466,176 1,411,273 1,622,453 1,720,600 1,727,041 1,816,507 1,883,698
Net investment income 21,712,340 3,221,551 687,860 15,616,363 12,458,090 10,240,873 8,084,207
Benefit payments, including refunds of employee
contributions (9,287,975) (10,407,243) (11,085,829) (11,565,392) (12,164,689) (12,756,888) (13,336,957)
Plan to plan resource movement (50,555) 229 (365) (20) (32)
Administrative expense (160,268) (86,726) (205,472) (233,683) (112,374) (230,510)
Other miscellaneous income (443,767) 365
Net change in plan fiduciary net position 18,125,995 (1,438,258) (3,135,032) 10,794,553 7,508,391 6,040,122 4,223,869
Plan fiduciary net position - beginning 125,614,993 143,740,988 142,302,730 139,167,698 149,962,251 157,470,642 163,510,764
Plan fiduciary net position - ending (b)$143,740,988 $142,302,730 $139,167,698 $149,962,251 $157,470,642 $163,510,764 167,734,633
Net pension liability - ending (a)-(b) $53,011,142 $56,568,530 $66,092,378 $77,465,471 $76,505,177 $81,305,364 $87,090,289
Plan fiduciary net position as a percentage of the total
pension liability 73.06% 71.56% 67.80% 65.94% 67.30% 66.79% 65.82%
Covered payroll $17,725,581 $17,798,104 $21,409,193 $29,390,370 $23,630,354 $24,993,270 $26,275,955
Net pension liability as percentage of covered payroll 299.07% 317.83% 308.71% 263.57% 323.76% 325.31% 331.44%
Notes to Schedule:
*Fiscal year 2015 was the 1st year of implementation.
Benefit changes:The figures above do not include any liability impact that may have resulted from plan changes
which occurred after the June 30 valuation date. This applies for voluntary benefit changes as well as any offers of
Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes in assumptions: In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019, and 2020, there
were no changes. In 2015, amounts reported reflect an adjustment of the discount rate form 7.5% (net of administrative expense) to
7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount rate.
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
100
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2021
Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 2021
Actuarially determined contribution $4,210,973 $5,399,856 $5,228,454 $6,166,024 $6,851,659 $7,831,598 $8,616,536
Contributions in relation to the actuarially
determined contributions 4,210,973 5,399,856 5,228,454 6,166,024 6,851,659 7,831,598 8,616,536
Contribution deficiency (excess)$0 $0 $0 $0 $0 $0 $0
Covered payroll $17,798,104 $21,409,193 $29,390,370 $23,630,354 $24,993,270 $26,275,955 $27,681,286
Contributions as a percentage of covered
payroll 23.66% 25.22% 17.79% 26.09% 27.41% 29.81% 31.13%
Notes to Schedule
Valuation date: 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation 2.75% for 2015 to 2019, an d 2.625% for 2020, and 2.50% for 2021
Salary increases
Investment rate of return
Retirement age
Mortality
*Fiscal year 2015 was the 1st year of implementation
Varies by entry age and service
7.50% for 2015 to 2018, 7.375% fo r 2019, 7.25% for 2020, and 7.00%
for 2021, net of administrative expenses, including inflation
The probabilities of Retirement are based on the CalPERS
Experience Study.
The probabilities of mortality are based on the CalPERS Experience
Study. Pre-retirement and Post-retirement mortality rates include 20
years of projected mortality improvement using Scale AA
published by the Society of Actuaries for 2015 to 2018. For 2019,
2020 and 2021, pre-retirement and post-retirement mortality rates
include 15 years of projected mortality improvement using 90% of
Scale MP-2016 published by the Society of Actuaries.
Miscellaneous Agent Multiple-Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
101
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2021
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020
Total Pension Liability
Service cost $5,143,842 $4,968,087 $5,329,842 $6,264,307 $6,511,672 $6,379,124 $6,880,000
Interest on total pension liability 18,899,544 19,398,484 20,134,558 21,238,842 22,129,483 23,249,091 24,284,010
Changes of benefit terms
Changes of assumptions (4,789,129)18,010,606 (1,293,579)
Difference between expected and actual experience (4,226,388) (915,267) 4,520,149 1,318,613 2,853,684 742,624
Benefit payments, including refunds of employee
contributions (13,161,296) (13,556,606) (14,463,995) (14,760,979) (15,629,698) (15,909,734) (16,384,059)
Net change in total pension liability 10,882,090 1,794,448 10,085,138 35,272,925 13,036,491 16,572,165 15,522,575
Total pension liability - beginning 256,002,648 266,884,738 268,679,186 278,764,324 314,037,249 327,073,740 343,645,905
Total pension liability - ending (a)$266,884,738 $268,679,186 $278,764,324 $314,037,249 $327,073,740 $343,645,905 $359,168,480
Plan fiduciary net position
Contributions - employer $6,535,399 $7,191,715 $8,535,737 $8,071,060 $9,323,936 $10,164,921 $11,402,434
Contributions - employee 2,151,163 1,714,039 1,961,907 1,980,507 2,134,552 2,486,989 2,890,991
Net investment income 29,348,051 4,264,997 950,612 21,553,126 17,363,158 14,404,633 11,506,885
Benefit payments, including refunds of employee
contributions (13,161,296) (13,556,606) (14,463,995) (14,760,979) (15,629,698) (15,909,734) (16,384,059)
Plan to plan resource movement (229) (512) 20 32
Administrative expense (219,696) (118,968) (283,579) (325,104) (157,625) (326,879)
Other miscellaneous income (617,378) 512
Net change in plan fiduciary net position 24,873,317 (605,551) (3,134,936) 16,560,135 12,248,954 10,989,716 9,089,404
Plan fiduciary net position - beginning 170,937,835 195,811,152 195,205,601 192,070,665 208,630,800 220,879,754 231,869,470
Plan fiduciary net position - ending (b)$195,811,152 $195,205,601 $192,070,665 $208,630,800 $220,879,754 $231,869,470 $240,958,874
Net pension liability - ending (a)-(b)$71,073,586 $73,473,585 $86,693,659 $105,406,449 $106,193,986 $111,776,435 $118,209,606
Plan fiduciary net position as a percentage of the total
pension liability 73.37% 72.65% 68.90% 66.44% 67.53% 67.47% 67.09%
Covered payroll $15,994,412 $16,679,857 $18,986,895 $19,563,549 $21,932,480 $22,975,254 $24,264,339
Net pension liability as percentage of covered payroll 444.37% 440.49% 456.60% 538.79% 484.19% 486.51% 499.47%
Notes to Schedule:
*Fiscal year 2015 was the 1st year of implementation.
Benefit changes.The figures above do not include any liability impact that may have resulted fromplan changes which occurred
afterthe June 30valuation date.This applies forvoluntary benefit changes as well as any offers of Two Years AdditionalService
Credit (a.k.a. Golden Handshakes).
Changes in assumptions: In 2017, the accounting discount rate reduced from 7.65% to 7.15%. In 2016, 2018, 2019 and 2020, there
were no changes.In 2015,amounts reported reflect an adjustment ofthe discount rate form7.5% (net ofadministrative expense)to
7.65% (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5% discount
rate.
Safety Agent Multiple-Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
102
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2021
Fiscal Year Ended June 30 2015 2016 2017 2018 2019 2020 2021
Actuarially determined contribution $7,191,715 $8,538,138 $8,071,060 $9,322,781 $10,164,821 $11,401,783 $12,413,770
Contributions in relation to the actuarially
determined contributions 7,191,715 8,538,138 8,071,060 9,322,781 10,164,821 11,401,783 12,413,770
Contribution deficiency (excess)$0 $0 $0 $0 $0 $0 $0
Covered payroll $16,679,857 $18,986,895 $19,563,549 $21,932,480 $22,975,254 $24,264,339 $24,378,494
Contributions as a percentage of covered
payroll 43.12% 44.97% 41.26% 42.51% 44.24% 46.99% 50.92%
Notes to Schedule
Valuation date:6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age
Amortization method Level percentage of payroll
Asset valuation method Fair value of assets
Inflation 2.75% for 2015 to 2019, and 2.625% for 2020, and 2.50% for 2021
Salary increases
Investment rate of return
Retirement age
Mortality
*Fiscal year 2015 was the 1st year of implementation
Varies by entry age and service
7.50% for 2015 to 2018, 7.375% for 2019, 7.25% for 2020, and 7.00% for 2021, net of
pension plan investment expense, including inflation.
The probabilities of Retirement are based on the CalPERS Experience Study.
The probabilities of mortality are based on the CalPERS Experience Study. Pre-retirement
and Post-retirement mortality rates include 20 years of projected mortality improvement
using Scale AA published by the Society of Actuaries for 2015 to 2018. For 2019, 2020,
and 2021, pre-retirement and post-retirement mortality rates include 15 years of projected
mortality improvement using 90% of Scale MP-2016 published by the Society of
Actuaries.
Safety Agent Multiple-Employer Defined Benefit Pension Plans
Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
103
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2021
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS
Retiree Healthcare OPEB Plan - Agent Multiple Employer
Last 10 fiscal years*
(Amounts in 000's)
Measurement Date 6/30/17 6/30/18 6/30/2019 6/30/2020
Total OPEB Liability
Service Cost $1,574 $1,535 $1,558 $1,604
Interest 5,087 5,325 5,568 5,952
Changes in benefit terms
Differences between expected and actual experience 91 2,895
Changes of assumptions (672) (1,859)
Benefit payments (2,901) (3,326) (3,378) (4,052)
Net change in total OPEB liability 3,760 3,625 5,971 1,645
Total OPEB liability - beginning 75,240 79,000 82,625 88,596
Total OPEB liability - ending (a)$79,000 $82,625 $88,596 $90,241
Plan fiduciary net position
Contributions - employer $3,703 $4,128 $4,180 $4,854
Contributions - employee
Net investment income 1,803 1,566 1,402 838
Administrative expense (9) (37) (5) (12)
Benefit payments (2,901) (3,326) (3,378) (4,052)
Net change in plan fiduciary net position 2,596 2,331 2,199 1,628
Plan fiduciary net position - beginning 17,114 19,710 22,041 24,240
Plan fiduciary net position - ending (b)$19,710 $22,041 $24,240 $25,868
Net OPEB liability - ending (a)-(b) $59,290 $60,584 $64,356 $64,373
Plan fiduciary net position as a percentage of the total OPEB liability 24.95% 26.68% 27.36% 28.67%
Covered-employee payroll $26,539 $26,986 $27,662 $28,215
Net OPEB liability as a percentage of covered-employee payroll 223.41% 224.50% 232.65% 228.15%
* Fiscal year 2018 was the first year of implementation.
104
CITY OF SOUTH SAN FRANCISCO
REQUIRED SUPPLEMENTARY INFORMATION
For the Fiscal Year Ended June 30, 2021
SCHEDULE OF CONTRIBUTIONS
Retiree Healthcare OPEB Plan - Agent Multiple Employer
Last 10 fiscal years*
(Amounts in 000's)
Fiscal Year Ended June 30, 2018 2019 2020 2021
Actuarially determined contribution $6,279 $6,839 $6,995 $7,253
Contributions in relation to the
actuarially determined contribution 4,128 4,180 4,854 4,810
Contribution deficiency (excess)$2,151 $2,659 $2,141 $2,443
Covered-employee payroll $26,986 $27,662 $28,215 $26,824
Contributions as a percentage of
covered-employee payroll 7.97%9.61%7.59%9.11%
* Fiscal year 2018 was the first year of implementation.
Valuation Date •June 30, 2019
Contribution Policy • City contributes $802,000 per year into trust
Actuarial Cost Method •Entry Age Normal, Level Percentage of Payroll
Amortization Method •Level dollar
Amortization Period •Average of 22 years remaining for 2020/21
•6.75% at June 30, 2020
•6.75% at June 30, 2019
•Expected City contributions projected to keep sufficient plan assets to pay all
benefits from trust.
Inflation •2.75% per annum
Salary Increases •Aggregate - 3% annually
•Merit - CalPERS 1997-2015 Experience Study
Healthcare/Medical Trend •Non-Medicare - 7.00% for 2022, decreasing to an ultimate rate of 4.0% in
2076 and later years
•Medicare - 6.1% for 2022, decreasing to an ultimate rate of 4.0% in 2076 and
later yearsMortality, Retirement, Disability, Termination •CalPERS 1997-2015 Experience Study
Mortality Improvement • Mortality projected fully generational with Scale MP-2019
Healthcare participation for future retirees •100% if covered, 95% if waived
Retiree Healthcare OPEB Plan - Agent Multiple Employer
NOTES TO SCHEDULE OF EMPLOYER CONTRIBUTION
Methods and Assumptions for Actuarially Determined Contribution
Discount Rate and Long-Term Expected
Rate of Return on Assets
105
This Page Left Intentionally Blank
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.
109
General Purpose Measure W Total
ASSETS
Cash and investments $51,412,156 $5,051,136 $56,463,292
Receivables:
Accounts 7,646,580 2,882,584 10,529,164
Accrued interest 164,535 164,535
Due from other funds
Due from Conference Center 62,516 62,516
Advances to other funds
Inventory 4,099 4,099
Restricted cash and investments 152,797 152,797
Properties held for redevelopment 16,354,141 16,354,141
Total Assets $75,796,824 $7,933,720 $83,730,544
LIABILITIES
Accounts payable $3,200,919 $3,200,919
Accrued salaries and benefits 2,835,241 2,835,241
Other payable 797,807 797,807
Deposits 927,576 927,576
Unearned revenue 210,000 210,000
Total Liabilities 7,971,543 7,971,543
FUND BALANCES
Nonspendable 4,099 4,099
Restricted 16,354,141 16,354,141
Committed 4,451,157 $7,921,045 12,372,202
Assigned 5,418,503 12,675 5,431,178
Unassigned 41,597,381 41,597,381
Total Fund Balances 67,825,281 7,933,720 75,759,001
Total Liabilities and Fund Balances $75,796,824 $7,933,720 $83,730,544
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING BALANCE SHEETS
JUNE 30, 2021
110
General Purpose Measure W Total
REVENUES
Property taxes $44,239,406 $44,239,406
Sales taxes 19,370,155 $13,379,292 32,749,447
Transient occupancy taxes 6,710,271 6,710,271
Franchise Fees 4,498,202 4,498,202
Other taxes 4,529,764 4,529,764
Intergovernmental 4,323,151 4,323,151
Interest and rentals 3,063,987 3,063,987
Licenses and permits 15,589,002 15,589,002
Charges for services 6,518,254 6,518,254
Fines and forfeitures 535,750 535,750
Other 731,752 731,752
Total Revenues 110,109,694 13,379,292 123,488,986
EXPENDITURES
Current:
City Council 224,257 224,257
City Clerk 956,698 956,698
City Treasurer 38,705 38,705
City Attorney 987,044 987,044
City Manager 3,725,991 267,961 3,993,952
Finance 2,917,393 2,917,393
Non-departmental 1,336,201 1,336,201
Human Resources 1,654,369 1,654,369
Fire 31,817,325 31,817,325
Police 30,959,959 30,959,959
Public Works 5,731,652 5,731,652
Parks and Recreation 15,795,645 15,795,645
Library 5,903,883 5,903,883
Economic and Community Development 6,560,605 6,560,605
Total Expenditures 108,609,727 267,961 108,877,688
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,499,967 13,111,331 14,611,298
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets (818,692)(818,692)
Transfers in 2,272,021 2,272,021
Transfers out (3,884,196) (20,156,992) (24,041,188)
Total Other Financing Sources (Uses)(2,430,867) (20,156,992) (22,587,859)
Net Change in Fund Balances before special items (930,900) (7,045,661) (7,976,561)
SPECIAL ITEMS
Proceeds from sale of common interest
Remittance of land sale proceeds (1,378,533)(1,378,533)
Net Change in Fund Balances (2,309,433)(9,355,094)
Fund balance - July 1 70,134,714 14,979,381 85,114,095
Fund balance - June 30 $67,825,281 $7,933,720 $75,759,001
CITY OF SOUTH SAN FRANCISCO
GENERAL FUND
COMBINING SCHEDULE OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2021
111
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, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $41,595,650 $43,051,499 $44,239,406 $1,187,907
Sales taxes 16,900,000 18,500,000 19,370,155 870,155
Transient occupancy taxes 7,872,437 5,904,328 6,710,271 805,943
Franchise fees 4,600,000 4,600,000 4,498,202 (101,798)
Other taxes 3,118,206 3,118,206 4,529,764 1,411,558
Intergovernmental 2,222,769 3,260,631 4,323,151 1,062,520
Interest and rentals 3,827,794 3,827,794 3,063,987 (763,807)
Licenses and permits 14,995,496 14,995,498 15,589,002 593,504
Charges for services 8,011,656 7,061,654 6,518,254 (543,400)
Fines and forfeitures 789,249 789,249 535,750 (253,499)
Other 175,341 175,341 731,752 556,411
Amounts available for appropriation 104,108,598 105,284,200 110,109,694 4,825,494
Charges to appropriations (outflows)
City Council 284,561 284,561 224,257 60,304
City Clerk 1,096,594 1,096,593 1,016,698 79,895
City Treasurer 145,524 145,525 38,705 106,820
City Attorney 910,049 910,049 987,044 (76,995)
City Manager 2,163,106 5,132,003 5,933,537 (801,534)
Finance 3,239,292 3,639,551 3,442,495 197,056
Non-departmental 1,044,277 1,737,423 1,366,323 371,100
Human Resources 1,779,644 2,031,504 1,889,976 141,528
Fire 29,978,036 31,010,490 32,023,646 (1,013,156)
Police 31,882,490 32,020,244 30,984,959 1,035,285
Public Works 5,774,064 5,856,707 5,973,424 (116,717)
Parks and Recreation 15,654,905 16,024,167 15,978,135 46,032
Library 6,048,132 6,245,898 5,903,883 342,015
Economic and Community Development 7,205,824 9,606,747 8,415,150 1,191,597
Total charges to appropriations 107,206,498 115,741,462 114,178,232 1,563,230
OTHER FINANCING SOURCES (USES)
Proceeds (Loss) from sale of capital assets (818,692) (818,692)
Transfers in 1,314,915 2,323,871 2,272,021 (51,850)
Transfers out (5,009,171) (8,029,073) (3,884,196) 4,144,877
Total Other Financing Sources (Uses) (3,694,256) (5,705,202) (2,430,867) 3,274,335
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS (6,792,156) (16,162,464) (6,499,405) 9,663,059
SPECIAL ITEMS
Remittance of land sale proceeds (1,378,533) (1,378,533)
Net Change in Fund Balances ($6,792,156) ($16,162,464)(7,877,938) $8,284,526
Fund Balance - July 1 70,134,714
Adjustment to budgetary basis:
Encumbrance adjustments 5,568,505
Fund Balance - June 30 $67,825,281
(Continued)
Budgeted Amounts
General Purpose
112
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, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes
Sales taxes $12,708,000 $12,708,000 $13,379,292 $671,292
Transient occupancy taxes
Franchise fees
Other taxes
Intergovernmental
Interest and rentals
Licenses and permits
Charges for services
Fines and forfeitures
Other
Amounts available for appropriation 12,708,000 12,708,000 13,379,292 671,292
Charges to appropriations (outflows)
City Council
City Clerk
City Treasurer
City Attorney
City Manager 327,826 280,636 47,190
Finance
Non-departmental
Human Resources
Fire
Police
Public Works
Parks and Recreation
Library
Economic and Community Development
Total charges to appropriations 327,826 280,636 47,190
OTHER FINANCING SOURCES (USES)
Proceeds (Loss) from sale of capital assets
Transfers in
Transfers out (3,434,200) (33,587,438) (20,156,992) 13,430,446
Total Other Financing Sources (Uses) (3,434,200) (33,587,438) (20,156,992) 13,430,446
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS 9,273,800 (21,207,264) (7,058,336) 14,148,928
SPECIAL ITEMS
Remittance of land sale proceeds
Net Change in Fund Balances $9,273,800 ($21,207,264) (7,058,336) $14,148,928
Fund Balance - July 1 14,979,381
Adjustment to budgetary basis:
Encumbrance adjustments 12,675
Fund Balance - June 30 $7,933,720
(Continued)
Budgeted Amounts
Measure W
113
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, 2021
Variance with
Final Budget
Actual Positive
Original Final Amount (Negative)
Resources (inflows):
Property taxes $41,595,650 $43,051,499 $44,239,406 $1,187,907
Sales taxes 29,608,000 31,208,000 32,749,447 1,541,447
Transient occupancy taxes 7,872,437 5,904,328 6,710,271 805,943
Franchise fees 4,600,000 4,600,000 4,498,202 (101,798)
Other taxes 3,118,206 3,118,206 4,529,764 1,411,558
Intergovernmental 2,222,769 3,260,631 4,323,151 1,062,520
Interest and rentals 3,827,794 3,827,794 3,063,987 (763,807)
Licenses and permits 14,995,496 14,995,498 15,589,002 593,504
Charges for services 8,011,656 7,061,654 6,518,254 (543,400)
Fines and forfeitures 789,249 789,249 535,750 (253,499)
Other 175,341 175,341 731,752 556,411
Amounts available for appropriation 116,816,598 117,992,200 123,488,986 5,496,786
Charges to appropriations (outflows)
City Council 284,561 284,561 224,257 60,304
City Clerk 1,096,594 1,096,593 1,016,698 79,895
City Treasurer 145,524 145,525 38,705 106,820
City Attorney 910,049 910,049 987,044 (76,995)
City Manager 2,163,106 5,459,829 6,214,173 (754,344)
Finance 3,239,292 3,639,551 3,442,495 197,056
Non-departmental 1,044,277 1,737,423 1,366,323 371,100
Human Resources 1,779,644 2,031,504 1,889,976 141,528
Fire 29,978,036 31,010,490 32,023,646 (1,013,156)
Police 31,882,490 32,020,244 30,984,959 1,035,285
Public Works 5,774,064 5,856,707 5,973,424 (116,717)
Parks and Recreation 15,654,905 16,024,167 15,978,135 46,032
Library 6,048,132 6,245,898 5,903,883 342,015
Economic and Community Development 7,205,824 9,606,747 8,415,150 1,191,597
Total charges to appropriations 107,206,498 116,069,288 114,458,868 1,610,420
OTHER FINANCING SOURCES (USES)
Proceeds (Loss) from sale of capital assets (818,692)(818,692)
Transfers in 1,314,915 2,323,871 2,272,021 (51,850)
Transfers out (8,443,371) (41,616,511) (24,041,188) 17,575,323
Total Other Financing Sources (Uses)(7,128,456) (39,292,640) (22,587,859) 16,704,781
NET CHANGE IN FUND BALANCES
BEFORE SPECIAL ITEMS 2,481,644 (37,369,728) (13,557,741) 23,811,987
SPECIAL ITEMS
Remittance of land sale proceeds (1,378,533) (1,378,533)
Net Change in Fund Balances $2,481,644 ($37,369,728) (14,936,274) $22,433,454
Fund Balance - July 1 85,114,095
Adjustment to budgetary basis:
Encumbrance adjustments 5,581,180
Fund Balance - June 30 $75,759,001
Budgeted Amounts
Total
114
MAJOR GOVERNMENTAL FUNDS OTHER THAN
GENERAL FUND AND SPECIAL REVENUE FUNDS
EAST OF 101 SEWER IMPACT FEES CAPITAL PROJECTS FUND
These fees provide new development’s share of new and rehabilitated sewer collection and treatment
facilities to serve the East of Highway 101 area.
TRAFFIC IMPACT FEES CAPITAL PROJECTS FUND
These fees are to provide new development’s share of new and expanded roadway and intersection
improvements to serve the East of Highway 101 area and other areas within the City.
CHILD CARE IMPACT FEES CAPITAL PROJECTS FUND
These citywide fees provide new development’s share of new and expanded childcare facilities to serve the
City.
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).
CAPITAL IMPROVEMENT POLICE STATION CAPITAL PROJECTS FUND
Accounts for expenditures associated with the acquisition, construction, and installation of certain capital
improvements constituting to new City police station located within the City’s new Civic Center Campus,
and related improvements, facilities and equipment’s, and pay the costs incurred in connection with the
issuance of the Series 2020A Bonds.
CAPITAL IMPROVEMENT CIVIC CAMPUS CAPITAL PROJECTS FUND
Accounts for expenditures associated with the acquisition, construction, and installation of certain capital
improvements constituting the City’s new Civic Center Campus, and related improvements, facilities and
equipment’s, and pay the costs incurred in connection with the issuance of the Series 2021A Bonds.
115
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, 2021
Variance with
Final Budget
Final Positive
Budget Actual Amounts (Negative)
REVENUES:
Interest and rental $8,886 $8,886
Charges for services 443,483 443,483
Total Revenues 452,369 452,369
EXPENDITURES:
Current:
Non-departmental $1,850 1,850
Total Expenditures 1,850 1,850
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,850) 450,519 452,369
OTHER FINANCING SOURCES (USES)
Transfers out (6,686,470) (1,714,080) 4,972,390
Total other financing sources (uses) (6,686,470) (1,714,080) 4,972,390
NET CHANGE IN FUND BALANCE ($6,688,320) (1,263,561) $5,424,759
Fund balance (deficit) - July 1 5,407,840
Fund balance (deficit) - June 30 $4,144,279
116
CITY OF SOUTH SAN FRANCISCO
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, 2021
Variance with
Final Budget
Final Positive
Budget Actual Amounts (Negative)
REVENUES:
Interest and rental $44,479 $44,479
Charges for services 1,962,094 1,962,094
Total Revenues 2,006,573 2,006,573
EXPENDITURES:
Current:
Public works $1,850 1,850
Total Expenditures 1,850 1,850
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,850) 2,004,723 2,006,573
OTHER FINANCING SOURCES (USES)
Transfers (out) (22,949,612) (2,530,159) 20,419,453
Total other financing sources (uses) (22,949,612) (2,530,159) 20,419,453
NET CHANGE IN FUND BALANCE ($22,951,462) (525,436) $22,426,026
Fund balance - July 1 25,015,746
Fund balance - June 30 $24,490,310
117
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, 2021
Variance with
Final Budget
Final Positive
Budget Actual Amounts (Negative)
REVENUES:
Interest and rental $12,236 $12,236
Charges for services 629,882 629,882
Total Revenues 642,118 642,118
EXPENDITURES:
Current:
Non-departmental $1,850 1,850
Total Expenditures 1,850 1,850
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,850) 640,268 642,118
OTHER FINANCING SOURCES (USES)
Transfers (out) (5,500,000) (37,150) 5,462,850
Total other financing sources (uses) (5,500,000) (37,150) 5,462,850
NET CHANGE IN FUND BALANCE ($5,501,850) 603,118 $6,104,968
Fund balance - July 1 6,185,208
Fund balance - June 30 $6,788,326
118
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, 2021
Variance with
Final Budget
Final Positive
Budget Actual Amounts (Negative)
REVENUES:
Interest and rental $890 $890
Total Revenues 890 890
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 890 890
OTHER FINANCING SOURCES (USES)
Transfers (out) (17,678) (17,678)
Total other financing sources (uses) (17,678) (17,678)
NET CHANGE IN FUND BALANCE (16,788) ($16,788)
Fund balance - July 1 16,788
Fund balance - June 30
119
Variance with
Final Budget
Final Positive
Budget Actual Amounts (Negative)
REVENUES:
Charges for services $250,000 $250,000
Interest and rental 54,022 54,022
Total Revenues 304,022 304,022
EXPENDITURES
Current:
Public Works $1,638,521 1,635,521 3,000
Total Expenditures 1,638,521 1,635,521 3,000
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,638,521) (1,331,499) 307,022
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (5,630,817) (3,100,805) 2,530,012
Total other financing sources (uses) (5,630,817) (3,100,805) 2,530,012
NET CHANGE IN FUND BALANCE ($7,269,338) (4,432,304) $2,837,034
Fund balance - July 1 29,363,924
Adjustment to budgetary basis:
Encumbrance adjustments 963,000
Fund balance - June 30 $25,894,620
CITY OF SOUTH SAN FRANCISCO
CAPITAL INFRASTRUCTURE RESERVE 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, 2021
120
Variance with
Final Budget
Final Positive
Budget Actual Amounts (Negative)
REVENUES:
Interest and rental $57,615 $117,606 $59,991
Total Revenues 57,615 117,606 59,991
EXPENDITURES
Current:
Police 46,639,582 45,963,455 676,127
Total Expenditures 46,639,582 45,963,455 676,127
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (46,581,967) (45,845,849) 736,118
NET CHANGE IN FUND BALANCE ($46,581,967) (45,845,849) $736,118
Fund balance - July 1 46,604,509
Adjustment to budgetary basis:
Encumbrance adjustments 6,029,988
Fund balance - June 30 $6,788,648
CITY OF SOUTH SAN FRANCISCO
CAPITAL IMPROVEMENTS POLICE STATION 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, 2021
121
Variance with
Final Budget
Final Positive
Budget Actual Amounts (Negative)
EXPENDITURES
Current:
Public Works $15,000,000 $14,686,104 $313,896
Debt service:
Interest and fiscal charges 475,260 (475,260)
Total Expenditures 15,000,000 15,161,364 (161,364)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (15,000,000) (15,161,364) (161,364)
OTHER FINANCING SOURCES (USES)
Issuance of debt 64,939,141 64,939,141
Bond premium 13,587,424 13,587,424
Transfers in 15,000,000 12,368,084 (2,631,916)
Total other financing sources (uses) 15,000,000 90,894,649 75,894,649
NET CHANGE IN FUND BALANCE 75,733,285 $75,733,285
Fund balance - July 1
Adjustment to budgetary basis:
Encumbrance adjustments 2,241,848
Fund balance - June 30 $77,975,133
CITY OF SOUTH SAN FRANCISCO
CAPITAL IMPROVEMENTS CIVIC CAMPUS 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, 2021
122
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 Districts – Accounts for a portion of property tax dedicated to provide for the
maintenance of landscaped areas within housing developments.
Transportation Sales Tax – Accounts for the sales tax that provides resources for street
improvements and repairs.
Solid Waste Reduction – Accounts for revenues and expenditures associated with the waste
reduction, recycling, composting and household hazardous waste programs for residents and
businesses.
Supplemental Law Enforcement Services – Accounts for State monies provided for designated
Police department services.
City Programs – Organizations and individuals provide revenues that fund certain programs and
services.
Affordable Housing Trust – The inclusionary housing requirement in the City provides that 20%
of new residential housing units (for projects of 4 or more units) be affordable. These in-lieu fees
(in-lieu of production of affordable housing units by the developer) provide new residential
development’s share of affordable housing units.
PEG Equipment and Access – Accounts for the one percent of money set-aside from cable
franchise fees that are used to support public, educational and governmental (PEG) channels.
Transit Station Enhancement in-Lieu Fee – Accounts for revenues that are collected as a
negotiated community benefit.
Road Maintenance and Rehabilitation – Accounts for State monies received and expended for
road maintenance and rehabilitation pursuant to Senate Bill 1, approved in 2017.
San Mateo County (SMC) Measure W ½ Sales Tax – Accounts for the City’s portion of the
special half cent sales tax receipts restricted for congestion relief and transit improvements.
American Rescue Plan Act – Accounts for the City’s allocation of American Rescue Plan federal
stimulus funds, as part of the federal government’s response to the impacts of the COVID-19
pandemic.
123
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.
Commercial Linkage Impact Fee – Accounts for affordable housing funding created by new
commercial development.
Debt service funds are used to account for resources used for the payment of debt service on long-term
debt. Debt service funds used at the City of South San Francisco include:
2020A Police Station - Accounts for expenditures associated with the acquisition, construction,
and installation of certain capital improvements constituting the new City police station located
within the City’s new Civic Center Campus, and related improvements, facilities and equipment,
and pay the costs incurred in connection with the issuance of the Series 2020A Bonds.
124
This Page Left Intentionally Blank
Federal Community
Developer Aviation Development Maintenance
Gas Tax Contributions Grant Block Grant Districts
ASSETS
Cash and investments $329,254 $8,972,389 $4,787,169
Receivables:
Accounts 214,001 $2,750 67,746
Accrued interest 1,018 28,837
Loans 688,888
Restricted cash and investments 9,185
Total Assets $330,272 $9,215,227 $700,823 $4,854,915
LIABILITIES
Liabilities:
Accounts payable $119,158 $43,457 $38,513
Other payable 37,487 548,980
Deposits 2,613,681
Unearned revenue
Total Liabilities 2,770,326 592,437 38,513
Fund Balances:
Restricted $330,272 6,444,901 108,386 4,816,402
Total Fund Balances 330,272 6,444,901 108,386 4,816,402
Total Liabilities and Fund Balances $330,272 $9,215,227 $700,823 $4,854,915
SPECIAL REVENUE FUNDS
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2021
126
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
$2,516,047 $759,499 $981 $11,521,916 $815,747 $1,593,114 $1,770,815
17,191 331 38,874
8,552 118 30,647 4,669 4,363 6,150
16,078
$2,524,599 $776,690 $1,099 $11,552,563 $836,825 $1,636,351 $1,776,965
$80 $151,344 $7,800
74,849 52
74,929 151,396 7,800
$2,524,599 701,761 $1,099 11,401,167 829,025 $1,636,351 $1,776,965
2,524,599 701,761 1,099 11,401,167 829,025 1,636,351 1,776,965
$2,524,599 $776,690 $1,099 $11,552,563 $836,825 $1,636,351 $1,776,965
(Continued)
127
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2021
CAPITAL PROJECTS
SPECIAL REVENUE FUNDS FUNDS
Road
Maintenance SMC Measure W American Non-obligated Public
and 1/2 Cent Rescue Capital Safety
Rehabilitation Sales Tax Plan Act Projects Impact Fee
ASSETS
Cash and investments $901,622 $459,438 $5,879,471 $1,495,466
Receivables:
Accounts 122,667 153,148
Accrued interest 4,920 1,675 3,920
Loans
Restricted cash and investments
Total Assets $1,029,209 $614,261 $5,879,471 $1,499,386
LIABILITIES
Liabilities:
Accounts payable
Other payable
Deposits
Unearned revenue $5,879,471
Total Liabilities 5,879,471
Fund Balances:
Restricted $1,029,209 $614,261 $1,499,386
Total Fund Balances 1,029,209 614,261 1,499,386
Total Liabilities and Fund Balances $1,029,209 $614,261 $5,879,471 $1,499,386
128
CAPITAL PROJECTS FUNDS
Oyster Point Sewer Oyster Point Park Land Park Bicycle and Commercial
Improvement Capacity Development Acquisition Construction Pedestrian Linkage
Impact Fees Charges Impact Fees Fee Fee Impact Fee Impact Fee
$38,596 $7,703,134 $62,061 $1,600,996 $5,336,002 $116,578 $10,215,641
54,097
113 22,994 2,777 8,780 235 16,314
$38,709 $7,726,128 $116,158 $1,603,773 $5,344,782 $116,813 $10,231,955
$63,055 $20,330
63,055 20,330
$38,709 $7,726,128 53,103 $1,603,773 $5,344,782 $116,813 10,211,625
38,709 7,726,128 53,103 1,603,773 5,344,782 116,813 10,211,625
$38,709 $7,726,128 $116,158 $1,603,773 $5,344,782 $116,813 $10,231,955
(Continued)
129
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2021
DEBT SERVICE
FUND
Total
Nonmajor
2020A Governmental
Bonds Funds
ASSETS
Cash and investments $66,875,936
Receivables:
Accounts 670,805
Accrued interest 146,082
Loans 704,966
Restricted cash and investments 9,185
Total Assets $68,406,974
LIABILITIES
Liabilities:
Accounts payable $443,737
Other payable 661,368
Deposits 2,613,681
Unearned revenue 5,879,471
Total Liabilities 9,598,257
Fund Balances:
Restricted 58,808,717
Total Fund Balances 58,808,717
Total Liabilities and Fund Balances $68,406,974
130
This Page Left Intentionally Blank
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2021
SPECIAL REVENUE FUNDS
Federal Community
Developer Aviation Development Maintenance
Gas Tax Contributions Grants Block Grant Districts
REVENUES
Property taxes $2,210,329
Sales taxes
Other taxes
Intergovernmental $1,806,304 $653,871
Interest and rentals 642 $16,274 $1,252 18,826
Charges for services 1,134,536 30,000
Other 11,109
Total Revenues 1,806,946 1,161,919 1,252 702,697 2,210,329
EXPENDITURES
Current:
Economic and community development 616,973 903,801
Public works 1,667,899
Police
Other 500,000
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 1,116,973 903,801 1,667,899
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,806,946 44,946 1,252 (201,104) 542,430
OTHER FINANCING SOURCES (USES)
Loss on sale of property
Transfers in
Transfers out (1,916,433) (1,538,895) (1,252) (43,096)
Total Other Financing Sources (Uses)(1,916,433) (1,538,895) (1,252) (43,096)
Net Change in Fund Balances (109,487) (1,493,949)(244,200) 542,430
Fund balance - July 1 439,759 7,938,850 352,586 4,273,972
Fund balance - June 30 $330,272 $6,444,901 $108,386 $4,816,402
132
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
$1,608,269 $160,781
5,729 116 $44,186 $4,132 $2,974 $4,099
$206,295
6,747,552 4,500 154,348
1,613,998 206,295 160,897 6,791,738 8,632 157,322 4,099
182,869
60,897
1,370,081 1,238,299
182,869 60,897 1,370,081 1,238,299
1,613,998 23,426 100,000 5,421,657 (1,229,667) 157,322 4,099
(1,899,999)
(1,889,208) (14,632) (100,000) (567,270)(475,659)
(1,889,208) (14,632) (100,000) (567,270) (1,899,999)(475,659)
(275,210) 8,794 4,854,387 (3,129,666) 157,322 (471,560)
2,799,809 692,967 1,099 6,546,780 3,958,691 1,479,029 2,248,525
$2,524,599 $701,761 $1,099 $11,401,167 $829,025 $1,636,351 $1,776,965
(Continued)
133
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2021
CAPITAL PROJECTS
SPECIAL REVENUE FUNDS FUNDS
Road
Maintenance SMC Measure W American Non-obligated Public
and 1/2 Cent Rescue Capital Safety
Rehabilitation Sales Tax Plan Act Projects Impact Fee
REVENUES
Property taxes
Sales taxes $751,698
Other taxes
Intergovernmental $1,245,493 $260,000
Interest and rentals 3,263 1,022 $2,580
Charges for services
Other 243,887
Total Revenues 1,248,756 752,720 260,000 246,467
EXPENDITURES
Current:
Economic and community development
Public works
Police
Other 260,000
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 260,000
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 1,248,756 752,720 246,467
OTHER FINANCING SOURCES (USES)
Loss on sale of property
Transfers in
Transfers out (1,921,293) (733,382)($41,857) (143,753)
Total Other Financing Sources (Uses)(1,921,293) (733,382)(41,857) (143,753)
Net Change in Fund Balances (672,537)19,338 (41,857) 102,714
Fund balance - July 1 1,701,746 594,923 41,857 1,396,672
Fund balance - June 30 $1,029,209 $614,261 $1,499,386
134
CAPITAL PROJECTS FUNDS
Oyster Point Sewer Oyster Point Park Land Park Bicycle and Commercial
Improvement Capacity Development Acquisition Construction Pedestrian Linkage
Impact Fees Charges Impact Fees Fee Fee Impact Fee Impact Fee
$8,172,201
$75 15,652 92 $1,918 $6,469 $174 $10,425
1,900,697 723,211 769,296 3,063,248 50,727 5,365,449
75 1,916,349 8,895,504 771,214 3,069,717 50,901 5,375,874
1,850 8,882,578
121,711
40,000
40,000 1,850 8,882,578 121,711
(39,925) 1,914,499 12,926 771,214 3,069,717 50,901 5,254,163
(2,338,118) (36,173)
(2,338,118) (36,173)
(39,925) (423,619) 12,926 735,041 3,069,717 50,901 5,254,163
78,634 8,149,747 40,177 868,732 2,275,065 65,912 4,957,462
$38,709 $7,726,128 $53,103 $1,603,773 $5,344,782 $116,813 $10,211,625
(Continued)
135
CITY OF SOUTH SAN FRANCISCO
NONMAJOR GOVERNMENTAL FUNDS
COMBINING STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2021
DEBT SERVICE
FUND
Total
Nonmajor
2020A Governmental
Bonds Funds
REVENUES
Property taxes $2,210,329
Sales taxes 751,698
Other taxes 1,769,050
Intergovernmental 12,137,869
Interest and rentals 139,900
Charges for services 13,243,459
Other 7,161,396
Total Revenues 37,413,701
EXPENDITURES
Current:
Economic and community development 1,703,643
Public works 10,552,327
Police 60,897
Other 3,490,091
Debt service:
Principal repayments $935,000 975,000
Interest and fiscal charges 1,832,200 1,832,200
Total Expenditures 2,767,200 18,614,158
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (2,767,200) 18,799,543
OTHER FINANCING SOURCES (USES)
Loss on sale of property (1,899,999)
Transfers in 2,767,200 2,767,200
Transfers out (11,761,021)
Total Other Financing Sources (Uses)2,767,200 (10,893,820)
Net Change in Fund Balances 7,905,723
Fund balance - July 1 50,902,994
Fund balance - June 30 $58,808,717
136
This Page Left Intentionally Blank
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Other taxes
Intergovernmental $1,989,358 $1,806,304 ($183,054)
Interest and rentals 15,000 642 (14,358) $4,000 $1,252 ($2,748)
Charges for services
Other
Total Revenues 2,004,358 1,806,946 (197,412) 4,000 1,252 (2,748)
EXPENDITURES
Current:
City Council
Economic and community development
Public works
Fire
Police
Other
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,004,358 1,806,946 (197,412) 4,000 1,252 (2,748)
OTHER FINANCING SOURCES (USES)
Loss on sale of property
Transfers in
Transfers out (2,486,329) (1,916,433) 569,896 (1,252) (1,252)
Total Other Financing Sources (Uses) (2,486,329) (1,916,433) 569,896 (1,252) (1,252)
NET CHANGE IN FUND BALANCES ($481,971) (109,487) $372,484 $4,000 ($4,000)
Adjustment to budgetary basis:
Encumbrance adjustments
Fund balance - July 1 439,759
Fund balance - June 30 $330,272
GRANT
FEDERAL AVIATION
GAS TAX
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, 2021
138
MAINTENANCE DISTRICTS
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$1,798,633 $2,210,329 $411,696
$1,527,755 $1,608,269 $80,514
$700,000 $653,871 ($46,129)
120,000 18,826 (101,174)25,000 5,729 (19,271)
574,525 30,000 (544,525)
1,394,525 702,697 (691,828) 1,798,633 2,210,329 411,696 1,552,755 1,613,998 61,243
1,815,292 1,282,890 532,402
2,224,835 1,706,402 518,433
1,815,292 1,282,890 532,402 2,224,835 1,706,402 518,433
(420,767) (580,193) (159,426) (426,202) 503,927 930,129 1,552,755 1,613,998 61,243
(43,096) (43,096)(4,202,484) (1,889,208) 2,313,276
(43,096) (43,096)(4,202,484) (1,889,208) 2,313,276
($463,863) (623,289) ($159,426) ($426,202) 503,927 $930,129 ($2,649,729) (275,210) $2,374,519
379,089 38,503
352,586 4,273,972 2,799,809
$108,386 $4,816,402 $2,524,599
(Continued)
BLOCK GRANT
COMMUNITY DEVELOPMENT
TRANSPORTATION SALES TAX
139
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Other taxes
Intergovernmental
Interest and rentals $5,000 $2,974 ($2,026)
Charges for services $180,000 $206,295 $26,295
Other 125,000 154,348 29,348
Total Revenues 180,000 206,295 26,295 130,000 157,322 27,322
EXPENDITURES
Current:
City Council
Economic and community development 238,309 265,610 (27,301)
Public works
Fire
Police
Other
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 238,309 265,610 (27,301)
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (58,309) (59,315) (1,006) 130,000 157,322 27,322
OTHER FINANCING SOURCES (USES)
Loss on sale of property
Transfers in
Transfers out (121,258) (14,632) 106,626
Total Other Financing Sources (Uses) (121,258) (14,632) 106,626
NET CHANGE IN FUND BALANCES ($179,567) (73,947) $105,620 $130,000 157,322 $27,322
Adjustment to budgetary basis:
Encumbrance adjustments 82,741
Fund balance - July 1 692,967 1,479,029
Fund balance - June 30 $701,761 $1,636,351
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, 2021
SOLID WASTE REDUCTION
PEG
EQUIPMENT AND ACCESS
140
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$600,000 $751,698 $151,698
$1,209,685 $1,245,493 $35,808
$4,099 $4,099 3,263 3,263 1,022 1,022
4,099 4,099 1,209,685 1,248,756 39,071 600,000 752,720 152,720
4,099 4,099 1,209,685 1,248,756 39,071 600,000 752,720 152,720
($939,895) (475,659) 464,236 (3,315,253) (1,921,293) 1,393,960 (775,136) (733,382) 41,754
(939,895) (475,659) 464,236 (3,315,253) (1,921,293) 1,393,960 (775,136) (733,382) 41,754
($939,895) (471,560) $468,335 ($2,105,568) (672,537) $1,433,031 ($175,136) 19,338 $194,474
2,248,525 1,701,746 594,923
$1,776,965 $1,029,209 $614,261
(Continued)
SMC MEASURE W
1/2 CENT SALES TAX
TRANSIT ENHANCEMENT
IN-LIEU FEE
ROAD MAINTENANCE
AND REHABILITATION
141
SEWER
CAPACITY CHARGES
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
REVENUES
Property taxes
Sales taxes
Other taxes
Intergovernmental
Interest and rentals $2,580 $2,580 $15,652 $15,652
Charges for services $200,000 1,900,697 1,700,697
Other 243,887 243,887
Total Revenues 246,467 246,467 200,000 1,916,349 1,716,349
EXPENDITURES
Current:
City Council
Economic and community development
Public works 1,850 1,850
Fire $9,446 9,446
Police
Other
Debt service:
Principal repayments
Interest and fiscal charges
Total Expenditures 9,446 9,446 1,850 1,850
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (9,446) 237,021 246,467 198,150 1,914,499 1,716,349
OTHER FINANCING SOURCES (USES)
Loss on sale of property
Transfers in
Transfers out (276,150) (143,753) 132,397 (3,794,783) (2,338,118) 1,456,665
Total Other Financing Sources (Uses) (276,150) (143,753) 132,397 (3,794,783) (2,338,118) 1,456,665
NET CHANGE IN FUND BALANCES ($285,596) 93,268 $378,864 ($3,596,633) (423,619) $3,173,014
Adjustment to budgetary basis:
Encumbrance adjustments 9,446
Fund balance - July 1 1,396,672 8,149,747
Fund balance - June 30 $1,499,386 $7,726,128
PUBLIC SAFETY
IMPACT FEE
FOR THE YEAR ENDED JUNE 30, 2021
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)
142
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative)
$1,918 $1,918 $6,469 $6,469
769,296 769,296 3,063,248 3,063,248
771,214 771,214 3,069,717 3,069,717
$935,000 $935,000
1,832,200 1,832,200
2,767,200 2,767,200
771,214 771,214 3,069,717 3,069,717 (2,767,200) (2,767,200)
2,767,200 2,767,200
($60,000) (36,173) 23,827 ($98,177)98,177
(60,000) (36,173) 23,827 (98,177)98,177 2,767,200 2,767,200
($60,000) 735,041 $795,041 ($98,177) 3,069,717 $3,167,894
868,732 2,275,065
$1,603,773 $5,344,782
2020A BONDS
PARK LAND
ACQUISITION FEE
PARK
CONSTRUCTION FEE
143
This Page Left Intentionally Blank
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.
145
CITY OF SOUTH SAN FRANCISCO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2021
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
ASSETS
Current assets:
Cash and investments $2,764,616 $17,440,935 $11,927,701 $5,809,832 $37,943,084
Receivables:
Accounts 31,027 31,027
Accrued interest 7,253 45,720 34,738 15,269 102,980
Deposit 216,000 93,790 309,790
Prepaid items
Total current assets 2,802,896 17,702,655 12,056,229 5,825,101 38,386,881
Noncurrent assets:
Capital assets:
Depreciable, net of accumulated depreciation 4,952,737 4,952,737
Total non-current assets 4,952,737 4,952,737
Total Assets 2,802,896 17,702,655 12,056,229 10,777,838 43,339,618
LIABILITIES
Current liabilities:
Accounts payable 107,508 107,707 122,253 50,087 387,555
Other payable 17,813 3 17,816
Current portion of accrued insurance loss 2,878,797 2,878,797
Current portion of compensated absences 72,148 762,475 834,623
Current portion of long-term debt 140,892 140,892
Total current liabilities 197,469 2,986,504 884,728 190,982 4,259,683
Noncurrent liabilities:
Accrued insurance loss 12,871,000 12,871,000
Compensated absences obligation 137,454 1,084,070 1,221,524
Noncurrent portion of long-term debt 144,637 144,637
Total noncurrent liabilities 137,454 12,871,000 1,084,070 144,637 14,237,161
Total Liabilities 334,923 15,857,504 1,968,798 335,619 18,496,844
NET POSITION:
Net investment in capital assets 4,667,208 4,667,208
Unrestricted 2,467,973 1,845,151 10,087,431 5,775,011 20,175,566
Total Net Position $2,467,973 $1,845,151 $10,087,431 $10,442,219 $24,842,774
146
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
OPERATING REVENUES
Charges for services $5,537,007 $6,323,537 $14,938,761 $1,438,573 $28,237,878
Total Operating Revenues 5,537,007 6,323,537 14,938,761 1,438,573 28,237,878
OPERATING EXPENSES
Personnel expenses 2,201,877 887,450 14,904,952 17,994,279
Professional services 701,191 52,961 2,065 756,217
Program supplies 1,556,093 500 32,766 1,589,359
Insurance 12,988 2,210,856 2,223,844
Self-insurance and claims 2,772,644 2,772,644
Repair and maintenance 455,308 119,290 574,598
Utilities 126,172 126,172
Depreciation 922,865 922,865
Other 14,901 468,401 483,302
Total Operating Expenses 5,068,530 5,923,911 15,375,918 1,074,921 27,443,280
Operating Income (Loss)468,477 399,626 (437,157)363,652 794,598
NONOPERATING
REVENUES (EXPENSES)
Interest income 5,214 31,801 23,089 10,479 70,583
Interest expense (11,585) (11,585)
Gain from disposal of capital assets 1,389 1,389
Loss on disposal of capital assets (20,006) (20,006)
Other 40,414 202,399 242,813
Total Nonoperating
Revenues (Expenses)47,017 234,200 23,089 (21,112) 283,194
Net income (loss) before transfers 515,494 633,826 (414,068)342,540 1,077,792
TRANSFERS
Transfers in 250,000 250,000
Transfers (out)(2,917)(2,917)
Change in Net Position 515,494 633,826 (164,068)339,623 1,324,875
Net Position - July 1 1,952,479 1,211,325 10,251,499 10,102,596 23,517,899
Net Position - June 30 $2,467,973 $1,845,151 $10,087,431 $10,442,219 $24,842,774
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2021
CITY OF SOUTH SAN FRANCISCO
147
CITY OF SOUTH SAN FRANCISCO
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2021
Health and
Self Retirement Equipment
City Service Insurance Benefits Replacement Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from interfund service provided $5,564,071 $6,525,936 $14,918,761 $1,438,573 $28,447,341
Cash payments to suppliers for goods and services (2,866,653) (2,296,492)(233,004) (5,396,149)
Cash payments to employees for services (2,263,830) (929,727) (14,941,420)(18,134,977)
Cash payments for judgments and claims (1,988,071)(1,988,071)
Net Cash Provided by Operating Activities 433,588 1,311,646 (22,659) 1,205,569 2,928,144
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Transfers in 250,000 250,000
Transfers (out)(2,917)(2,917)
Net Cash Provided by Noncapital Financing Activities 250,000 (2,917) 247,083
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Principal paid on capital lease (204,252) (204,252)
Interest payments (11,585) (11,585)
Acquisition of capital assets, net (574,701) (574,701)
Proceeds from the sale of capital assets 1,389 15,120 16,509
Net Cash Used in Capital and Related Financing Activities 1,389 (775,418) (774,029)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received (20,141) (115,602) (88,286) (38,573) (262,602)
Changes in fair values of investments 27,472 173,176 131,580 57,836 390,064
Net Cash Provided by Investing Activities 7,331 57,574 43,294 19,263 127,462
Net Increase (Decrease) in cash and cash equivalents 442,308 1,369,220 270,635 446,497 2,528,660
Cash and cash equivalents, beginning 2,322,308 16,071,715 11,657,066 5,363,335 35,414,424
Cash and cash equivalents, ending $2,764,616 $17,440,935 $11,927,701 $5,809,832 $37,943,084
Reconciliation of operating income (loss) to net cash
provided by operating activities:
Operating income (loss)$468,477 $399,626 ($437,157) $363,652 $794,598
Adjustments to reconcile operating income (loss)
to cash flows from operating activities:
Depreciation 922,865 922,865
Other non-operating revenue (expenses)40,414 202,399 242,813
Net change in assets and liabilities:
Accounts and lease receivables (13,350)(13,350)
Deposit (20,000)(20,000)
Prepaid items 1,074,537 1,074,537
Accounts payable (51,087) (42,277) (744,836)(838,200)
Other payable (32,675) (43,220) (80,948) (156,843)
Accrued insurance losses 784,573 784,573
Compensated absence obligations (10,866)148,017 137,151
Net Cash Provided by (Used in) Operating Activities $433,588 $1,311,646 ($22,659) $1,205,569 $2,928,144
NONCASH TRANSACTIONS
Retirement of capital assets ($35,126) ($35,126)
148
STATISTICAL SECTION
This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and required
supplementary information says about the City’s overall financial health. In contrast to the financial
section, the statistical section information is not subject to independent audit.
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial
performance and well being have changed over time:
1.Net Position by Component
2.Changes in Net Position
3.Fund Balances of Governmental Funds
4.Changes in Fund Balance of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue
source, the property tax:
1.Assessed Value and Estimated Market Value of Taxable Property
2.All Overlapping Property Tax Rates
3.Principal Property Tax Payers
4.Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels
of outstanding debt and the City’s ability to issue additional debt in the future:
1.Ratio of Outstanding Debt by Type
2.Computation of Direct and Overlapping Debt
3.Computation of Legal Bonded Debt Margin
4.Continuing Disclosure Requirements:
a.Revenue Bond Coverage
b.Sewer Debt Service Coverage
c.Bonded Debt Pledge Revenue Coverage
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the City’s financial activities take place:
1.Demographic and Economic Statistics
2.Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information
in the City’s financial report relates to the services the City provides and the activities it performs:
1.Full-Time City Government Employees by Function
2.Operating Indicators by Function/Program
3.Capital Asset Statistics by Function/Program
149
STATISTICAL SECTION - (Continued)
Miscellaneous Information
1.Collection and Use of 1% Special Transient Occupancy Tax
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive
Financial Reports for the relevant year.
150
2012 2013 2014 2015 2016
Governmental activities
Net investment in capital assets $218,218,696 $216,508,668 $230,440,390 $230,517,037 $231,142,079
Restricted 43,321,286 30,514,986 42,367,623 49,311,828 52,406,602
Unrestricted (3,837,201) 8,021,490 (12,317,511) (134,389,522) (120,119,617)
Total governmental activities net position $257,702,781 $255,045,144 $260,490,502 $145,439,343 $163,429,064
Business-type activities
Net investment in capital assets $70,653,841 $72,217,660 $78,045,318 $78,598,277 $83,930,073
Restricted
Unrestricted 10,877,105 13,353,988 15,367,085 4,196,654 6,243,225
Total business-type activities net position $81,530,946 $85,571,648 $93,412,403 $82,794,931 $90,173,298
Primary government
Net investment in capital assets $288,872,537 $288,726,328 $308,485,708 $309,115,314 $315,072,152
Restricted 43,321,286 30,514,986 42,367,623 49,311,828 52,406,602
Unrestricted 7,039,904 21,375,478 3,049,574 (130,192,868) (113,876,392)
Total primary government net position $339,233,727 $340,616,792 $353,902,905 $228,234,274 $253,602,362
2017 2018 2019 2020 2021
Governmental activities
Net investment in capital assets $254,344,554 $254,570,044 $271,349,364 $296,243,640 $316,169,957
Restricted 54,478,093 96,316,988 117,752,590 138,701,991 160,119,056
Unrestricted (86,808,434) (129,833,581) (114,028,420) (130,288,161) (144,181,245)
Total governmental activities net position $222,014,213 $221,053,451 $275,073,534 $304,657,470 $332,107,768
Business-type activities
Net investment in capital assets $86,167,704 $90,097,907 $100,463,280 $111,968,328 $123,628,942
Restricted
Unrestricted 7,199,925 3,227,395 44,966 2,040,842 7,208,752
Total business-type activities net position $93,367,629 $93,325,302 $100,508,246 $114,009,170 $130,837,694
Primary government
Net investment in capital assets $340,512,258 $344,667,951 $371,812,644 $408,211,968 $439,798,899
Restricted 54,478,093 96,316,988 117,752,590 138,701,991 160,119,056
Unrestricted (79,608,509) (126,606,186) (113,983,454) (128,247,319) (136,972,493)
Total primary government net position $315,381,842 $314,378,753 $375,581,780 $418,666,640 $462,945,462
Source: City of South San Francisco, Department of Finance
(a) The City adjusted certain beginning balances during fiscal years 2014-15 and 2017-18 due to the implementation of GASB
Statements 68 and 75. Financial data shown for the proceeding year were not adjusted for the presentation.
CITY OF SOUTH SAN FRANCISCO
(accrual basis of accounting)
Last Ten Fiscal Years (a)
Net Position by Component
($200)
($100)
$0
$100
$200
$300
$400
$500
$600
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Millions
Unrestricted
Restricted
Invested in Capital Assets Net of
Related Debt
151
CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2012 2013 2014 2015
Expenses
Governmental Activities:
General Government $7,801,328 $8,360,945 $7,155,035 $8,421,857
Fire Department 20,749,323 22,746,291 21,200,903 22,005,883
Police Department 23,330,208 24,756,958 24,376,379 23,910,436
Public Works 21,269,281 15,773,710 14,980,417 14,493,039
Park, Recreation and Maintenance Services 11,641,892 12,570,236 12,658,309 12,383,880
Library 4,754,760 4,615,967 4,310,550 4,300,885
Economic and Community Development 8,702,949 16,126,427 5,525,541 5,928,316
Interest on Long -Term Debt 3,328,244 52,139
Total Governmental Activities Expenses 101,577,985 105,002,673 90,207,134 91,444,296
Business-Type Activities:
Sewer Rental 19,446,739 20,870,522 19,301,103 23,969,579
Parking District 769,117 792,609 943,859 503,014
Storm Water 1,010,093 1,655,950 1,078,868 1,234,616
Total Business-Type Activities Expenses 21,225,949 23,319,081 21,323,830 25,707,209
Total Primary Government Expenses $122,803,934 $128,321,754 $111,530,964 $117,151,505
Program Revenues
Governmental Activities:
Charges for Services:
General Government $2,032,292 $1,951,016 $5,785,598 $3,946,302
Fire Department 3,697,665 2,987,956 3,304,952 3,520,275
Police Department 2,599,149 2,640,146 2,805,640 2,370,736
Public Works 3,607,224 2,926,227 4,734,813 5,071,729
Park, Recreation and Maintenance Services 3,178,276 3,433,567 3,571,947 3,708,272
Library 143,971 125,416 138,827 120,850
Economic and Community Development 4,968,383 3,457,020 5,800,849 5,337,177
Operating Grants and Contributions 5,650,685 5,455,010 5,601,916 5,753,845
Capital Grants and Contributions 1,471,416 4,036,786 1,538,225 632,735
Total Government Activities Program Revenues 27,349,061 27,013,144 33,282,767 30,461,921
Business-Type Activities:
Charges for Services:
Sewer Rental 19,310,286 19,338,107 19,155,467 19,798,033
Parking District 760,248 732,932 785,586 819,051
Storm Water 409,498 427,291 409,458 407,640
Operating Grants and Contributions 5,936,527 6,137,401 7,619,601 6,242,687
Capital Grants and Contributions
Total Business-Type Activities Program Revenue 26,416,559 26,635,731 27,970,112 27,267,411
Total Primary Government Program Revenues $53,765,620 $53,648,875 $61,252,879 $57,729,332
Net (Expense)/Revenue
Governmental Activities ($74,228,924) ($77,989,529) ($56,924,367) ($60,982,375)
Business-Type Activities 5,190,610 3,316,650 6,646,282 1,560,202
Total Primary Government Net Expense ($69,038,314) ($74,672,879) ($50,278,085) ($59,422,173)
152
2016 2017 2018 2019 2020 2021
$9,044,518 $10,253,403 $12,506,188 $12,139,671 $15,378,452 $19,611,586
22,488,964 25,750,126 30,352,387 31,986,738 34,442,874 34,492,838
23,158,168 25,838,242 30,732,288 32,994,122 36,095,698 33,376,962
11,916,572 12,396,998 18,379,278 20,425,958 17,737,243 7,567,745
12,901,657 15,217,677 17,162,377 17,962,298 19,620,848 17,159,696
4,442,577 5,184,282 5,910,406 6,241,093 6,728,102 6,274,811
7,603,275 8,927,162 10,094,626 10,557,116 9,837,938 11,728,168
512,376 2,200,344
91,555,731 103,567,890 125,137,550 132,306,996 139,841,155 132,412,150
18,273,580 22,661,768 24,397,607 25,719,049 26,213,885 26,644,459
894,769 940,181 1,202,319 896,994 1,116,840 1,338,092
1,289,465 1,333,409 1,026,948 1,188,182 1,206,694 922,057
20,457,814 24,935,358 26,626,874 27,804,225 28,537,419 28,904,608
$112,013,545 $128,503,248 $151,764,424 $160,111,221 $168,378,574 $161,316,758
$4,194,563 $2,225,049 $1,966,755 $7,930,983 $5,217,199 $6,968,307
3,450,524 4,242,940 6,327,921 6,052,804 6,073,247 5,952,872
2,076,837 2,146,909 2,230,824 2,351,491 2,092,791 1,642,726
10,361,525 10,869,608 24,727,897 27,811,701 23,355,636 24,859,635
3,744,137 3,756,369 4,489,665 4,293,474 2,872,786 1,165,630
164,271 96,987 102,124 105,466 97,603 19,037
6,131,463 3,911,597 13,052,441 14,214,991 9,067,781 4,275,808
5,581,492 4,533,539 5,827,149 12,091,079 8,757,554 8,021,958
1,147,337 577,995 2,515,868 1,629,730 4,930,640 5,498,698
36,852,149 32,360,993 61,240,644 76,481,719 62,465,237 58,404,671
19,569,341 19,897,769 22,417,156 24,078,076 24,296,811 24,705,044
843,199 916,687 1,084,472 1,180,538 1,003,222 764,514
412,105 418,840 656,315 540,679 412,707 410,745
5,802,788 5,763,645 5,834,455 6,452,950 7,440,041 14,815,460
26,627,433 26,996,941 29,992,398 32,252,243 33,152,781 40,695,763
$63,479,582 $59,357,934 $91,233,042 $108,733,962 $95,618,018 $99,100,434
($54,703,582) ($71,206,897) ($63,896,906) ($55,825,277) ($77,375,918) ($74,007,479)
6,169,619 2,061,583 3,365,524 4,448,018 4,615,362 11,791,155
($48,533,963) ($69,145,314) ($60,531,382) ($51,377,259) ($72,760,556) ($62,216,324)
153
CITY OF SOUTH SAN FRANCISCO
Changes in Net Position
(continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2012 2013 2014 2015
General Revenues and Other Changes in Net Position
Governmental Activities:
Taxes:
Property Taxes $37,379,175 $26,420,861 $22,890,828 $24,650,648
Sales Taxes 11,691,564 12,931,805 12,725,141 13,932,125
Transient Occupancy Tax 8,619,170 9,659,281 11,174,017 12,947,473
Franchise fees
Other Taxes 7,089,687 7,588,471 8,141,010 8,650,056
Motor Vehicle In-Lieu 168,214 33,767 40,074 26,995
Property taxes in lieu of vehicle license fees 5,153,384 4,955,873 5,319,154 5,551,651
Interest Earnings 2,384,207 809,721 1,108,177 629,036
Gain from sale of property
Other 9,300,137 1,965,744 2,012,444 4,577,239
Extraordinary Item (107,717,428)
Transfers (785,309) (906,857) (1,041,120) (1,429,308)
Special items 11,873,226
Total Government Activities (26,717,199) 75,331,892 62,369,725 69,535,915
Business-Type Activities:
Interest Earnings 149,242 95,177 153,353 126,874
Transfers 785,309 906,857 1,041,120 1,429,308
Total Business-Type Activities 934,551 1,002,034 1,194,473 1,556,182
Total Primary Government ($25,782,648) $76,333,926 $63,564,198 $71,092,097
Change in Net Position
Governmental Activities ($100,946,123) ($2,657,637) $5,445,358 $8,553,540
Business-Type Activities 6,125,161 4,318,684 7,840,755 3,116,384
Total Primary Government ($94,820,962) $1,661,047 $13,286,113 $11,669,924
154
2016 2017 2018 2019 2020 2021
$26,438,620 $29,023,618 $29,551,445 $33,446,750 $37,415,367 $41,561,039
15,188,686 24,087,776 28,340,393 31,843,568 31,855,027 33,039,229
13,393,437 13,631,507 13,978,533 17,091,222 13,829,025 6,710,271
3,982,092 4,090,073 4,403,493 4,469,808 4,594,577 4,498,202
5,124,574 5,708,187 5,871,096 4,995,404 4,515,376 4,529,764
26,708 28,933 34,452 32,200 53,089 49,785
5,770,060 6,133,230 6,438,199 7,150,867 7,457,005 4,888,696
1,354,266 622,518 1,097,916 4,808,664 6,384,253 941,856
840,298
2,334,407 2,365,820 5,180,288 7,799,392 9,152,218 11,602,214
(919,547) (1,105,038) (1,997,377) (2,101,222) (8,060,646) (4,984,746)
45,205,422 (7,154,626) (531,591) 276,939 (1,378,533)
72,693,303 129,792,046 85,743,812 109,845,360 107,472,230 101,457,777
289,201 27,710 37,072 633,704 824,916 52,623
919,547 1,105,038 1,997,377 2,101,222 8,060,646 4,984,746
1,208,748 1,132,748 2,034,449 2,734,926 8,885,562 5,037,369
$73,902,051 $130,924,794 $87,778,261 $112,580,286 $116,357,792 $106,495,146
$17,989,721 $58,585,149 $21,846,906 $54,020,083 $30,096,312 $27,450,298
7,378,367 3,194,331 5,399,973 7,182,944 13,500,924 16,828,524
$25,368,088 $61,779,480 $27,246,879 $61,203,027 $43,597,236 $44,278,822
155
CITY OF SOUTH SAN FRANCISCO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Fund
Nonspendable $90,167 $805,677 $14,163 $1,134 $33,580 $474 $106 $372 $574 $4,099
Restricted 20,582,335 19,201,948 18,372,633 16,354,141
Committed 208,054 1,406,430 3,879,451 2,536,790 3,654,283 11,780,724 16,725,897 22,619,868 17,723,338 12,372,202
Assigned 840,365 566,104 743,746 1,458,029 1,578,153 5,244,279 4,334,322 11,881,363 5,720,788 5,431,178
Unassigned 17,347,445 23,498,194 15,891,899 17,285,422 17,751,169 39,278,746 19,644,232 31,239,632 43,296,762 41,597,381
Total General Fund $18,486,031 $26,276,405 $20,529,259 $21,281,375 $23,017,185 $56,304,223 $61,286,892 $84,943,183 $85,114,095 $75,759,001 (a)
All Other Governmental Funds
Nonspendable $39,205
Restricted $43,364,540 $30,539,396 $42,392,238 $43,437,361 $52,938,897 $55,195,500 $78,603,366 103,135,202 $140,143,149 $208,220,607
Assigned 2,076,065 1,105,320 6,188,554 367,023 29,363,924 26,145,062
Unassigned (1,388,956) (1,379,895) (521,604) (40,459)(88,331) (11,073) (2,971,345) 235,649
Total all other governmental funds $44,051,649 $30,264,821 $41,870,634 $49,585,456 $53,305,920 $55,107,169 $78,592,293 $100,203,062 $169,742,722 $234,365,669
#REF!#REF!62,537,680 56,541,226 62,399,893 62,399,893 70,866,831 139,879,185 310,124,670
(a) The change in total fund balance for the General Fund and other governmental funds is explained in Management's Discussion and Analysis.
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Thousands
Total Committed
Total Unassigned
Total Assigned
Total Restricted
Total Nonspendable
156
This Page Left Intentionally Blank
CITY OF SOUTH SAN FRANCISCO
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
2012 2013 2014 2015
Revenues
Property Taxes $38,174,655 $27,077,697 $23,010,136 $24,650,648
Other Taxes 28,866,546 31,894,811 33,931,446 38,275,478
Intergovernmental revenues 11,580,530 13,054,594 10,757,440 10,453,071
Interest and Rents 4,955,223 3,238,089 3,632,693 3,531,966
Licenses and permits 3,056,507 3,054,451 4,366,271 4,795,158
Charges for services 10,088,070 9,275,724 16,864,409 13,387,712
Fines and forfeitures 2,184,234 1,753,682 1,528,319 1,221,413
Other 3,000,563 1,837,675 2,249,728 4,660,668
Total Revenues 101,906,328 91,186,723 96,340,442 100,976,114
Expenditures
Current:
General government 6,485,219 6,658,532 5,970,429 7,167,969
Fire Department 18,812,861 20,877,917 20,163,759 21,247,989
Police Department 21,217,818 22,542,135 23,309,568 23,611,743
Public works 14,253,609 9,186,493 16,791,894 15,923,071
Recreation and Community Services 10,101,408 10,927,433 11,552,502 11,826,407
Library 4,272,701 4,112,570 3,987,928 4,247,650
Economic and Community Development 8,184,334 20,512,545 5,972,966 5,917,508
Other 480,290
Capital outlay 8,894,514
Debt service:
Principal repayment 1,752,000 453,381 352,674
Interest and fiscal charges 1,817,764 52,139
Total Expenditures 95,792,228 94,869,764 88,202,427 90,775,301
Excess (deficiency) of revenues over
(under) expenditures 6,114,100 (3,683,041)8,138,015 10,200,813
Other Financing Sources (Uses)
Transfers in 108,413,018 4,467,530 21,870,234 17,983,227
Transfers (out)(109,646,766)(6,780,943) (24,149,582)(19,717,102)
Lease revenue bonds issued
Premium on bonds
Sale of capital assets
Total other financing sources (uses)(1,233,748)(2,313,413)(2,279,348)(1,733,875)
Net Change in fund balances
before extraordinary and special items 4,880,352 (5,996,454)5,858,667 8,466,938
Extraordinary item (110,397,363)
Special item
Net change in fund balances ($105,517,011) ($5,996,454)$5,858,667 $8,466,938
Debt service as a percentage of
noncapital expenditures 4.1%0.1%0.6%0.4%
For The Fiscal Year Ended June 30,
158
2016 2017 2018 2019 2020 2021
$26,438,620 $35,156,848 $35,989,644 $40,597,617 $44,872,372 $46,449,735
41,811,097 49,608,385 54,597,272 60,721,378 57,214,783 51,008,432
12,360,354 4,019,771 8,433,240 13,179,593 18,317,060 17,867,273
4,207,453 3,100,692 3,524,727 7,231,303 8,864,998 3,620,391
6,896,897 7,823,403 14,674,809 15,381,416 15,900,500 15,589,002
15,386,358 14,485,367 31,961,419 41,055,659 27,442,005 23,191,413
791,756 899,118 423,604 926,729 814,354 535,750
2,439,579 2,906,625 6,454,460 7,994,701 3,067,691 7,893,148
110,332,114 118,000,209 156,059,175 187,088,396 176,493,763 166,155,144
8,469,924 9,399,930 10,403,449 10,166,977 12,453,262 12,112,319
24,175,340 25,632,366 26,059,072 27,576,879 28,161,459 31,817,325
25,458,986 25,998,097 26,970,854 28,533,292 37,468,430 70,954,323
14,846,346 12,143,965 23,859,399 38,459,963 40,070,330 51,501,254
13,234,028 14,897,157 15,468,370 16,530,603 17,130,302 15,795,645
4,681,188 5,157,355 5,379,836 5,628,693 5,940,870 5,903,883
7,907,655 8,943,111 9,338,793 9,085,390 8,780,903 11,227,503
395,749 274,183 256,298 333,024 723,901 3,490,091
656,000 23,000 2,382,000 3,464,000 1,210,000 975,000
739,146 2,307,460
99,825,216 102,469,164 120,118,071 139,778,821 152,678,603 206,084,803
10,506,898 15,531,045 35,941,104 47,309,575 23,815,160 (39,929,659)
8,143,075 14,327,130 26,486,651 22,230,499 38,117,966 37,970,252
(13,193,699)(16,368,499)(30,795,941)(24,581,721)(46,647,023)(43,202,081)
43,905,000 86,410,000
10,242,530 18,116,565
1,016,276 3,990,605 840,298 (2,718,691)
(5,050,624)(1,025,093)(318,685)(1,510,924)45,618,473 96,576,045
5,456,274 14,505,952 35,622,419 45,798,651 69,433,633 56,646,386
20,582,335 (7,154,626)(531,591)276,939 (1,378,533)
$5,456,274 $35,088,287 $28,467,793 $45,267,060 $69,710,572 $55,267,853
0.7%0.0%2.2%3.0%1.7%2.9%
For The Fiscal Year Ended June 30,
159
Real Property Net Taxable value Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct
Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b)
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%
2020 8,459,303,983 2,717,851,133 7,535,473,093 491,981,925 19,204,610,134 1,727,590,717 20,932,200,851 20,932,200,851 0.13638%
2021 9,020,710,463 2,872,601,136 8,744,250,213 507,383,957 21,144,945,769 2,056,800,753 23,201,746,522 23,201,746,522 0.13622%
Source: HdL Coren & Cone, San Mateo County Assessor 2011/12-2020/21 Tax Property Values.
(a)
(b)
CITY OF SOUTH SAN FRANCISCO
The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-
rides. These values are considered to be full market values.
California cities do not set their own direct tax rate. The state constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities
within a tax rate area.
ASSESSED VALUE
OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
$0
$5,000
$10,000
$15,000
$20,000
$25,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Millions
Series1 Series2
160
Fiscal Basic School Total Direct/Overlapping
Year Levy Districts Tax Rates
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)
2020 1.000 0.1648
1.1648 (1,26)
2021 1.000 0.1893
1.1893 (1,27)
Notes:
Source: HDL, Coren & Cone (San mateo County Assessor 2010/11- 2020/21 Tax Rate Table).
(27) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0563, which includes SSFUSD & San Mateo Jr College
bond. 4 has a rate of 1.1543 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College
bonds. 1 has a rate of 1.1112, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond
and San Mateo Jr. Coll bonds.
(26) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0647, which includes SSFUSD & San Mateo Jr College
bond. 4 has a rate of 1.1267 which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr College
bonds. 1 has a rate of 1.1148, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College bond
and San Mateo Jr. Coll bonds.
CITY OF SOUTH SAN FRANCISCO
DIRECT AND OVERLAPPING
PROPERTY TAX RATES
LAST TEN FISCAL YEARS
(1) Like other cities, South San Francisco includes several property tax rate areas with different rates.
(23) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0714 percent, which includes SSFUSD bonds & San Mateo Jr
College bond. 4 has a rate of 1.1282 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr
College bonds. 1 has a rate of 1.0910 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College
bond and San Mateo Comm Coll bond.
(24) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0601 percent, which includes SSFUSD bonds & San Mateo Jr
College bond. 4 has a rate of 1.1276 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD, SM Jr
College bonds. 1 has a rate of 1.0900 percent, which includes San Bruno Pk Elem bond, SM Union High, SM High, SM Jr College
bond and San Mateo Comm Coll bond.
(25) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0597 percent, which includes SSFUSD & San Mateo Jr
College bond. 4 has a rate of 1.1126 percent which includes Brisbane ESD Bond, Jefferson High bonds, Jefferson USHD,
SM Jr College bonds. 1 has a rate of 1.0801 percent, which includes San Bruno Pk Elem bond, SM Union High, SM
High, SM Jr College bond and San Mateo Jr. Coll bonds.
(18) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0420 percent, which includes SSFUSD bonds and San mateo Jr
College bond. 3 has a rate of 1.0893 percent and one at 1.0854 percent which includes Jefferson Union School bond, Brisbane ESD
bonds & San Mateo JR College bonds and one has a rate of 1.0909 percent which includes San Bruno Park Elementary.
(19) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0521 percent, which includes SSFUSD bonds, San Mateo Jr College
bond, and San Mateo Comm College. 4 has a rate of 1.0921 percent which includes Brisbane ESD Bond, Jefferson High bonds, SM
Jr College bond and San Mateo Comm College. 1 has a rate of 1.0905 percent, which includes San Bruno Pk Elem bond, SM
Union High, SM Jr College bond and San Mateo Comm Coll bond.
(20) Of the 68 tax rate areas in the City, 63 have a tax rate of 1.0522 percent, which includes SSFUSD bonds, San Mateo Jr College
bond, and San Mateo Comm College. 4 has a rate of 1.1048 percent which includes Brisbane ESD Bond, Jefferson High bonds, SM
Jr College bond and San Mateo Comm College. 1 has a rate of 1.0864 percent, which includes San Bruno Pk Elem bond, SM
Union High, SM High, 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.
161
This Page Left Intentionally Blank
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.$2,953,030,213 1 12.73% $1,918,102,967 1 13.87%
HCP Oyster Point III LLC 795,928,157 2 3.43% -- ----
ARE San Francisco LLC 738,355,548 3 3.18% -- ----
Slough SSF LLC 685,393,965 4 2.95% -- ----
GNS South Tower LP 633,313,121 5 2.73% -- ----
United Airlines Inc 426,814,705 6 1.84% 157,685,825 6 1.14%
Britannia Pointe Grand LP 322,530,116 7 1.39% 274,970,686 5 1.99%
ARE East Grand Avenue Owner LLC 240,428,480 8 1.04% -- ----
KP Oyster Point LLC 224,702,833 9 0.97% -- ----
BMR 1000 Gateway LP 217,352,597 10 0.94% -- ----
Slough BTC LLC -- ---- 549,058,893 2 3.97%
Slough SSF LLC De -- ---- 467,741,887 3 3.38%
ARE San Francisco -- ---- 355,928,252 4 2.57%
ASN Solaire LLC -- ---- 144,242,296 7 1.04%
Gateway Center LLC De -- ---- 132,623,657 8 0.96%
Britannia Biotech Gateway LP -- ---- 129,898,536 9 0.94%
Myers Peninsula Venture LLC -- ---- 121,804,011 10 0.88%
Subtotal $7,237,849,735 31.20% $4,252,057,010 30.75%
Total Net Assessed Valuation:
Fiscal Year 2020-21 $23,201,746,522
Fiscal Year 2011-12 $13,827,036,118
HdL Coren & Cone, 2011/12 & 2020/21 Top Ten Property Taxpayers (Net Values).
San Mateo County Assessor 2011/12 & 2020/21 Combined Tax Rolls and the SBE Non Unitary Tax Roll
Source:
2020-21 2011-12
CITY OF SOUTH SAN FRANCISCO
Principal Property Tax Payers
Current Year and Nine Years Ago
163
Fiscal Percent of
Year Allocations (5) Collections Delinquencies Delinquent taxes
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%
2020 20,651,650 (4)(4)0.0%
2021 22,660,544 (4)(4)0.0%
Notes:
(1) Excludes State Reimbursed Exemptions and deductions for County property tax administration.
(2) County adopted full cash value method of valuation rather than assessed valuation.
(3) Levies include real and personal property.
(5) San Mateo County controller's Office. Adjusted estimated revenue for City of South San Francisco.
Source: San Mateo County Auditor -- Controller's Office; Finance Department Revenue Reports
(4) Information not applicable. All general purpose property taxes are levied by the County and
allocated to other governmental entities.
CITY OF SOUTH SAN FRANCISCO
PROPERTY TAX LEVIES AND COLLECTIONS (1)
LAST TEN FISCAL YEARS
$6
$7
$8
$9
$10
$11
$12
$13
$14
$15
$16
$17
$18
$19
$20
$21
$22
$23
$24
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Millions
164
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
2012 $14,120,927 $4,445,000 $2,056,382 $3,324,000 $23,946,309
2013 13,343,039 3,084,553 16,427,592
2014 11,722,826 3,316,836 15,039,662
2015 11,370,152 2,786,573 14,156,725
2016 10,714,152 2,238,998 12,953,150
2017 10,691,152 1,673,522 12,364,674
2018 8,309,152 1,135,102 9,444,254
2019 4,845,152 753,619 5,598,771
2020 3,635,152 $43,905,000 489,781 48,029,933
2021 3,595,152 156,980,389 285,529 160,861,070
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)
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 35,148,205 38,118,205 43,716,976 1.63% 644.04
2020 2,655,000 50,150,607 52,805,607 100,835,540 3.48% 1,501.98
2021 2,325,000 60,480,459 62,805,459 223,666,529 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
$20
$40
$60
$80
$100
$120
$140
$160
$180
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021MillionsTotal Governmental Total Business
165
CITY OF SOUTH SAN FRANCISCO
COMPUTATION OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2021
2019-20 Assessed Valuation:$23,201,746,522
Redevelopment Incremental Valuation:-
Adjusted Assessed Valuation:$23,201,746,522
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/2021 % Applicable (1) Debt 6/30/21
San Mateo Community College District $761,305,961 9.062% $68,989,546
Jefferson Union High School District 265,554,630 3.416 9,071,346
South San Francisco Unified School District 163,485,887 90.949 148,688,779
Brisbane School District 15,356,439 20.302 3,117,664
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $229,867,335
OVERLAPPING FUND DEBT:
San Mateo County General Fund Obligations $640,119,345 9.062% $58,007,615
San Mateo County Board of Education Certificates of Participation 6,840,000 9.062 619,841
San Mateo County Flood Control and Sea LRR District General Fund Obligations 15,425,000 61.030 9,413,878
South San Francisco Unified School District General Fund Obligations 3,185,000 90.949 2,896,726
Jefferson Union High School District Certificates of Participation 47,490,000 3.416 $1,622,258
City of South San Francisco Lease Revenue Bonds 156,980,389 100.000 129,380,000
City of South San Francisco Loans Payable 3,595,152 100.000 $3,595,152
City of South San Francisco Capital Leases 285,529 100.000 285,529
TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT:$205,820,999
TOTAL DIRECT DEBT 133,260,681
Total Overlapping Debt $302,427,653
COMBINED TOTAL DEBT $435,688,334 (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 0.99%
Total Direct Debt 0.57%
Combined Total Debt 1.88%
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.
166
ASSESSED VALUATION:$23,201,746,522
BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a)$870,065,495
LESS AMOUNT OF DEBT SUBJECT TO LIMIT:0
LEGAL BONDED DEBT MARGIN $870,065,495
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
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%
2020 784,957,532 0 784,957,532 0.00%
2021 870,065,495 0 870,065,495 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, 2021
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.
167
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
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
2020 31,807,110 21,064,165 10,742,945 315,000 134,019 449,019 23.93
2021 33,885,393 21,401,332 12,484,061 330,000 120,593 450,593 27.71
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) Gross revenue includes operating revenue and non-operating revenue.
(2)Direct operating expenses include operating expenses (except depreciation) and non-operating expenses
(except interest expense).
(3) Retirement of principal for 2005 Sewer Revenue Bonds begins in fiscal year 2008.
(4) The requirement does not include loan payments on State Water Resources Board loans. See schedule of Sewer Debt
service coverage for details.
Source: City of South San Francisco, Department of Finance
$5
$10
$15
$20
$25
$30
$35
$40
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021MillionsRevenue (1)
Expenses (2)
168
Fiscal Year
2016 2017 2018 2019 2020 2021
Revenues
Service Charges $19,515,093 $19,750,636 $22,188,154 $23,556,871 $24,150,139 $24,526,952
Connection and Other Fees 104,283 147,134 229,002 521,205 146,672 178,092
Interest Income 238,389 23,552 31,061 488,437 623,256 41,888
Developer Fees
Other Cities' Participation (1)5,752,765 5,763,644 5,834,455 5,827,480 6,887,043 9,138,461
Total Revenues $25,610,530 $25,684,966 $28,282,672 $30,393,993 $31,807,110 $33,885,393
Operating Expenses (2)$18,759,650 $13,514,718 $19,073,943 $20,398,147 $21,064,167 $21,401,332
Wastewater System Net Revenues $6,850,880 $12,170,248 $9,208,729 $9,995,846 $10,742,943 $12,484,061
Parity Debt Service (3)
State Water Resources Control Board Loans $5,449,692 $5,454,747 $5,469,175 $5,477,075 $5,485,587 $5,497,048
CSCDA Series 2005D Revenue Bonds 178,036 167,284 155,706 143,608 130,815 117,175
Total Parity Debt $5,627,728 $5,622,031 $5,624,881 $5,620,683 $5,616,402 $5,614,223
Total Parity Debt Service Coverage 1.22 2.16 1.64 1.78 1.91 2.22
10,012,867 10,012,867 10,012,867 10,012,867 10,012,867 10,012,867
(2) Excludes depreciation, capital expenditures and debt service.
(3) Includes Sewer Revenue Bonds and State Water Loan payments
(1) Primarily consists of payments from the City of San Bruno. The City of San Bruno is a co-owner of the Plant and pays the City in advance on a quarterly basis for the City of
San Bruno's share of operating costs. See "Wastewater System" herein.
(4) Reflects an adopted increase in rates for Fiscal Year 2004-05 of 25% per Resolution No. 68-2004, adopted by the City Council on July 14, 2004 and effective on and after July
1, 2004 and an adopted increase in rates for Fiscal Year 2005-06 of 9% per Resolution No. 68-2005, adopted by the City Council on June 22, 2005 and effective on and after June
22, 2005.
CITY OF SOUTH SAN FRANCISCO
SEWER DEBT SERVICE COVERAGE
SEWER RENTAL ENTERPRISE FUND
LAST SIX FISCAL YEARS
169
CITY OF SOUTH SAN FRANCISCO
REDEVELOPMENT PLEDGED REVENUE COVERAGE
LAST EIGHT FISCAL YEARS
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements Fiscal Available Debt Service Requirements
Year Revenue Principal Interest Total Coverage Year Revenue Principal Interest Total Coverage
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
2020 2020
2021 2021
Bond was paid off in fiscal year 2017
Funding Source: RDA tax increment revenues
Fiscal Available Debt Service Requirements
Year Revenue Principal Interest Total Coverage
2014 $1,545,000 $2,971,344 $4,516,344
2015 1,605,000 2,904,331 4,509,331
2016 1,680,000 2,834,619 4,514,619
2017 1,745,000 2,761,756 4,506,756
2018 0 0 0
2019 0 0 0
2020 0 0 0
2021 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)
170
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
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%
2019 67,879 2,684,438 39,547 2.3% 766,573 8.85%
2020 67,135 2,895,980 43,136 8.9% 765,245 8.77%
Notes:
** All data were updated to reflect the City of South San Francisco's current information available
through HDL, Coren & Cone
Data Sources:
(1) City Population: HDL/California State Dept of Finance.
(2) Personal and per capita income: HDL, Coren & Cone
(3) Unemployment Data: HDL/California Employment Development Department
(4) San Mateo County Population- https://www.census.gov/quickfacts/fact/table/sanmateocountycalifornia,CA/PST045219
CITY OF SOUTH SAN FRANCISCO
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
City Personal Income
(in Thousands)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
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
$45,000
City Per Capita Personal Income
171
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% 8,451 1 13.2%
ABBVIE 1,000 2 1.5% 0.0%
Costco Wholesale (4 stores) 834 3 1.2% 485 2
Amazon.com Services, Inc 706 4 1.1% 0.0%
Life Technologies Corporation 622 5 0.9%
Verily Life Sciences LLC 555 6 0.8%
Goodwill Industries of SF 375 7 0.6%
Sutro Biopharma, Inc 321 8 0.5%
MRL San Francisco, LLC 317 9 0.5%
ZS Associates, Inc 317 9 0.5%
Frank & Grossman Landscape Contractors 265 10 0.4% 0.0%
Amgen San Francisco LLC 451 3 0.7%
Guardsmark LLC 347 4 0.5%
American Etc Inc/ Royal Laundry 321 5 0.5%
Bay Bread LLC (2 stores) 288 6 0.4%
Elan Pharmaceuticals (3 locations) 283 7 0.4%
DBI Beverage 232 8 0.4%
SBM Site Services, LLC 232 8 0.4%
Oroweat/ Entenmann's 233 9 0.4%
Monogram Biosciences Inc 210 10 0.3%
Subtotal 13,944 20.8% 11,533 18.0%
Total City Population 67,135 64,067
Data Sources:
(1) SSF Business License Database- Business licenses expiring 12/31/21.
(2) City of South San Francisco CAFR 2011-12
(3) Population: HDL/California State Dept of Finance 2020.
2011-122020-21
CITY OF SOUTH SAN FRANCISCO
Principal Employers
Current Year and Nine Years Ago
172
Function 2012 2013 2014 2015 2016 2017 2018 2019
2020 2021
General Government (1) 36.60 36.60 37.60 40.60 47.10 47.10 43.60 41.60 46.60 46.60
Fire Department (2)82.48 82.48 82.98 83.48 92.68 92.68 92.68 91.93 91.68 91.68
Police Department 110.65 115.65 119.75 118.87 120.87 120.87 120.87 122.87 121.87 120.92
Park, Rec. & Maintenance Services 107.86 111.66 117.21 121.31 134.16 137.19 144.29 144.79 151.75 143.84
Library 35.34 35.35 37.66 37.71 38.71 39.26 40.49 41.49 41.49 38.56
Economic and Comm. Development 24.45 23.45 24.40 26.15 27.15 29.40 30.40 30.40 31.40 29.00
Public Works (2) 43.03 45.02 47.21 47.68 49.00 49.00 49.00 53.00 52.00 47.00
Water Quality Control Plant 38.82 38.82 39.63 39.06 41.74 41.50 41.50 41.50 41.50 41.50
Total 479.23 489.03 506.44 514.86 551.41 557.00 562.83 567.58 578.29 559.10
Notes:
1. City Council, City Treasurer, City Clerk, City Manager, HR, IT and Finance are under General Government.
2. Oversight of the Code Enforcement has been moved from Fire to Public Works Department.
Source: City of South San Francisco's FY2012-FY2021 Adopted Operating budget.
CITY OF SOUTH SAN FRANCISCO
Full-Time Equivalent City Government
Employees by Function
Last Ten Fiscal Years (Adopted Operating Budget)
0.00
100.00
200.00
300.00
400.00
500.00
600.00
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Government (1)Fire Department (2)Police Department
Park, Rec. & Maintenance Services Library Economic and Comm. Development
Public Works (2)Water Quality Control Plant
173
2015 2016 2017 2018 2019 2020 2021
Function/Program
Public safety:
Fire:
Inspections conducted 1,817 2,563 3,426 2,292 2,511 2,375 3,888
Police:
Police calls for service 31,532 32,477 33,313 34,811 38,299 38,541 40,503
Law violations:
Part I crimes 1,874 2,126 2,103 2,276 2,007 2,070 3,481
Physical arrests (adult and juvenile) 1,933 2,071 1,870 1,891 1,943 1,871 1,635
Traffic violations 3,828 4,211 3,785 3,359 3,620 4,172 2,119
Parking violations 13,378 12,006 15,291 18,339 26,228 12,269 13,276
Public works
Street resurfacing (miles) (Eng Div) 0 2 8 3.3 7.0 7.9 19.57
Potholes repaired (square miles prior)/(square feet) 0.11 2 0 (2) 3221 410 190 165
Asphalt used for street repairs (tons) 250 151 94 148 13 46 69
Culture and recreation:
Recreation class participants (5) 26,879 23,399 23,939 25,688 23,394 17,333 (4) 5,282
Library:
Total items borrowed 643,630 565,806 558,106 544,059 582,497 (3) 450,637 (3) 245,869
Items in collection 130,106 (1) 208,400 209,895 219,114 228,224 247,393 260,205
Wastewater
Residential connections 16,470 16,491 16,488 12,556 12,559 12,549 12,571
Commercial connections 1,560 1,561 1,562 1,575 1,576 1,582 1,575
Other connections 128 131 140 140 140 140 140
Average daily sewage treatment (millions of gallons) 8.89 7.92 8.41 8.62 8.62 7.12 6.76
Note: N/A denotes information not available.
(1) New items added for Grand Library and electronic books are also included.
(2) Beginning 2018, pothole repairs will be measured by square feet instead of square miles.
(3) Fewer items borrowed in FY2020 and FY2021 due to COVID-19 closures.
(4) Summer camp and traditional sports programs included. Lower participant counts due to COVID-19 limitations and closures.
(5) Registration counts have excluded all withdrawals from the classes for the year while the numbers in 2015 did not.
CITY OF SOUTH SAN FRANCISCO
Operating Indicators by Function/Program
Last Seven Fiscal Years
174
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Function/Program
Public safety:
Fire stations 5555555555
Police stations (2)1111111111
Police Fleet 51 51 50 53 53 52 59 63 60 63
Public works
Miles of streets 127 127 127 127 127 127 127 127 127 127
Street lights (5) 4,160 4,505 4,505 4,505 4,505 4,505 4,531 4,531 4,531 4,581
Parking District lights (6) 20 20 20 20 20 16 16 16 16 16
Traffic Signals 74 74 74 74 76 76 76 76 76 80
Culture and recreation:
Community services:
City parks 28 28 28 28 28 28 28 28 28 28
City parks acreage 190 190 190 190 190 190 190 210 210 210
Playgrounds (7) 24 24 24 24 24 24 24 24 34 34
City trails 6666666666
Community gardens 1111111111
Community centers 4444444444
Senior centers (3)1111111111
Skate Park (4)1111111111
Dog park (4)1111111111
Swimming pools 1111111111
Tennis courts 7777777777
Basketball Courts 12 12 12 12 12 12 12 12 12 12
Baseball/softball diamonds11111111111111111111
Soccer/football fields 5555555555
Library:
City Libraries (1)2222222222
Wastewater
Miles of sanitary sewers 164 164 164 164 164 164 164 164 164 164
Miles of storm sewers 125 125 125 125 125 125 125 125 125 125
Number of treatment plants 1111111111
Source: ssf.net/depts/rcs; Director of Rec & Comm Services; Superintendent of parks & Maintenance
(1) Community Learning Center not included on count as it is only a homework center not a library.
(2) Year 2012 the Police substation located behind Miller parking garage is not included.
(3) The only senior center is Magnolia Center but programming still continues at El Camino.
(4) Year 2010, Skate park and dog park was added on the list.
(5) Year 2013- Includes all lights in SSF billed as LS-2 from PG&E.
(6) Year 2017- Lot 6 sold for Rotary Plaza development.
(7) Year 2020 -Playgrounds in the Common Greens areas are now included.
CITY OF SOUTH SAN FRANCISCO
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
175
2019 2020 2021
Transient Occupancy Tax Detail
13% TOT collected $15,535,213 $12,591,459 $6,215,172
1% Measure I Special Tax 1,556,009 1,114,911 495,099
Total TOT Collection $17,091,222 $13,706,371 $6,710,270
1% Measure I Special Tax Use
Police 311,202 222,982 99,020
Fire 311,202 222,982 99,020
Library 311,202 222,982 99,020
Parks 311,202 222,982 99,020
Recreation 311,202 222,982 99,020
Total 1% Measure I Special Tax $1,556,009 $1,114,911 $495,099
* Note: The current TOT consists of three components - a 9% general excise tax (Measure FF) that generates General Fund revenues;
a 1% special tax (Measure I- effective January 1, 2005) was earmarked for use to supplement funding parks, recreation, library, and
public safety services (SSFMC 4.20.033) and a $2.50 tax devoted to the acquisition, renovation, maintenance and operation of the
South San Francisco Conference Center. The City Council last increased the total TOT rate from 9% to 10% in 2009 with the
incremental 1% increase being a general tax. City's TOT rate from 10% to 12% effective January 1, 2019. A subsequent 2% increase
over the next two years would revise the TOT rate to 13% (effective January 1, 2020) and 14% (effective January 1, 2021).
CITY OF SOUTH SAN FRANCISCO
Collection and Use of 1% Special Transient Occupancy Tax (TOT) Approved by Voters as Measure I *
Miscellaneous Information
Last Three Fiscal Years
176