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CITYof BRISBANE
Thursday, May 30, 2024 at 6:00 PM ● Hybrid Meeting 50 Park Place, Brisbane, CA The public may observe/participate in City Council meetings using remote public comment options or attending in person. City Council members shall attend in person unless remote participation is permitted by law. The City Council may take action on any item listed in the agenda.
TO ADDRESS THE COUNCIL
IN PERSON
Location: 50 Park Place, Brisbane, CA 94005, Community Meeting Room Masking is not required but according to the California Department of Public Health guidelines, people at higher risk for severe illness should consider masking. To help maintain public health and safety, we respectively request that people not attend in-person if they are experiencing symptoms associated with COVID-19 or are otherwise ill and likely contagious (e.g., respiratory illnesses).
To address the City Council on any item – whether on the posted agenda or not – please fill out a Request to Speak Form located in the Community Meeting Room Lobby and submit it to the City Clerk. Speakers are not required to submit their name or address.
REMOTE PARTICIPATION
Members of the public may participate in the City Council meeting by logging into the Zoom Webinar listed below. City Council meetings may also be viewed live and/or on-demand via the City’s YouTube Channel, youtube.com/brisbaneca, or on Comcast Ch. 27. Archived videos may be replayed on the City’s website, brisbaneca.org/meetings. Please be advised that if there are technological difficulties, the meeting will nevertheless continue if remote participation is available.
The agenda materials may be viewed online at brisbaneca.org at least 72 hours prior to a Regular Meeting, and at least 24 hours prior to a Special Meeting.
Remote Public Comments:
Remote meeting participants may address the City Council. We also encourage you to submit public comments in writing in advance of a meeting. Aside from commenting personally while in the Zoom Webinar, the following email and text line will be also monitored during the meeting and public comments received will be noted for the record during Oral Communications 1 and 2 or during an agenda item.
Email: [email protected] or Text: (628) 219-2922
Join Zoom Webinar: zoom.us (please use the latest version: zoom.us/download) brisbaneca.org/cc-zoom
Webinar ID: 991 9362 8666
Call In Number: 1 (669) 900-9128
Note: Callers dial *9 to “raise hand” and dial *6 to mute/unmute.
City Council Special Meeting Agenda
1 May 30, 2024 - 2 - 6:00 PM
SPECIAL ASSISTANCE
If you need special assistance to participate in this meeting, please contact the City Clerk at (415) 508- 2113. Notification in advance of the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
WRITINGS THAT ARE RECEIVED AFTER THE AGENDA HAS BEEN POSTED Any writings that are received after the agenda has been posted but before 4pm of the day of the meeting will be available for public inspection at the front lobby in City Hall and on the internet (brisbaneca.org/meetings). Any writings that are received after 4pm of the day of the meeting will be available on the internet at the start of the meeting (brisbaneca.org/meetings), at which time the materials will be distributed to the Council.
6:00 P.M. CALL TO ORDER – PLEDGE OF ALLEGIANCE
ROLL CALL
A. Consider any request of a City Councilmember to attend the meeting remotely under the “Emergency Circumstances” of AB 2449
ADOPTION OF AGENDA
ORAL COMMUNICATIONS NO. 1
NEW BUSINESS
B. Presentation on Audit
C. Budget Workshop
i. City Manager Introduction to the 2024/25 Budget
ii. Finance Director Overview of the 2024/25 Budget
iii. Department Presentations
Public Works / Utilities / Marina/Library
Community Development
Police Department
Fire Department
Parks & Recreation / Co-Sponsorships
Finance
Human Resources
City Manager / City Council
City Clerk
Central Services / Debt
iv. Wrap Up
ADJOURNMENT
2 File Attachments for Item:
B. Presentation on Audit
3 Review FY23 Draft of Annual Comprehensive Financial Report Page 1 of 5
CITY COUNCIL AGENDA REPORT
Meeting Date: 5/30/2024
From: Carolina Yuen, Finance Director
Subject: Review of FY23 Draft of Annual Comprehensive Financial Report
Community Goal/Result
Fiscal Stability
Purpose
Review draft report of financial results of prior fiscal year to ensure funding for current approved programs and services and set funding aside for long-term liabilities.
Recommendation
City Council accept the draft of the FY 2022/23 Annual Comprehensive Financial Report to correlate with the review of the proposed FY25 Budget.
Background
The financial statements of the City of Brisbane for the fiscal year ending June 30, 2023, were prepared by the Finance staff and examined by an independent auditing firm, Maze and Associates, in accordance with Governmental Accounting Standards Board (GASB) Statement
34. The City has received and reviewed a draft of the report. Currently, the auditors have indicated the expectation that their opinion will reveal that the financial statements present fairly, in all material respects, the respective financial position of the City as of June 20, 2023, and that the financial statements were prepared in conformity with general accepted accounting principles.
The Finance staff incorporates the financial statements into the Annual Comprehensive Financial Report (ACFR), the purpose of which is to present an easily readable and organized report of the financial transaction of the City. The City has received and reviewed a draft of the financial report and is pending additional schedules to incorporate into the ACFR. A final review of the ACFR from the auditors is expected by early June. The ACFR provides members of the public with a wide variety of information needed to evaluate the financial condition of the City.
The final step in the formal process of preparing these financial statements is to transmit them to the City Council for acceptance.
Discussion of General Fund Results
The City’s General Fund revenues increased by $5.6 million, or 21.5% compared to the prior fiscal year amount of $25.9 million. General Fund revenues, including property taxes, sales 4 B.
Review FY23 Draft of Annual Comprehensive Financial Report Page 2 of 5 taxes, charges for services, business license taxes, and transient occupancy taxes increased compared to the prior year.
The City’s General Fund expenditures totaled $31.7 million, an increase of $3.8 million from prior year expenditures of $27.9 million. The increase in expenditures was primarily caused by increases in salaries and benefits per negotiated labor agreements, expansion of programming coming out of COVID, review of an org-wide technology plan, and increases in costs of fuel, shipping and services.
Additional details and information regarding the other operating and internal service funds can be found in the attached draft of the financial statements and notes to the financial statements.
FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of the City of Brisbane increased by $8.3 million, or
5.5%, to $167.7 million, of which $124.3 million represents governmental assets and deferred outflows and $43.4 million represents business-type assets and deferred outflows.
• As of June 30, 2023, the City’s total liabilities and deferred inflows increased by $7.1 million, or 11.8%, to $79.5 million, of which $67.1 million represents governmental liabilities and deferred inflows and $12.3 million represents business-type liabilities and deferred inflows.
• The assets and deferred outflows of the City exceed its liabilities and deferred inflows by $88.2 million (net position). Of this amount, ($7.6) million represents unrestricted net position which may be used to meet the government’s ongoing obligations to constituents through programs, creditors or to make payments towards unfunded retirement liabilities.
• The total net position increased by $1.3 million primarily because the City experienced an increase property and sales taxes, which offset an increase of expenses in operations. The result was favorable to budgeted decrease. • At the close of the current fiscal year, the City of Brisbane’s governmental funds reported combined fund balances of $25.5 million. Approximately 12% of this amount, $2.9 million is available for spending at the government’s discretion (unassigned fund balance).
• City-wide revenue increased by $6.3 million, or 19%, to $39.6 million, of which $31.4 million was generated by governmental activities and $8.2 million was generated by business-type activities.
• City-wide expenses increased by $1.4 million, or 3.9%, to $38.4 million, of which $29.3 million were generated by governmental activities and $9.1 million were generated by business-type activities.
5 B.
Review FY23 Draft of Annual Comprehensive Financial Report Page 3 of 5 Overview of the Financial Statements
The City of Brisbane’s basic financial statements consist of three components: 1) governmentwide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The ACFR also includes supplementary information intended to furnish additional detail to support the basic financial statements.
Government-Wide financial statements. The government-wide financial statements provide a corporate-like long-term view of the City's activities as a whole and include the Statement of Net Position and the Statement of Activities. They are presented using the accrual basis of accounting.
The statement of net position is designed to show bottom line results for the City and its governmental activities. This statement uses full-accrual basis and combines and consolidates governmental funds’ current financial resources (short-term spendable assets) with capital assets and long-term obligations.
The statement of activities is focused on both the gross and net cost of various activities that are supported by the government’s general tax and other revenues. This is intended to summarize and simplify the user’s analysis of the cost of various governmental services.
Both government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities include general government (City Council, City Manager, City Attorney, City Clerk, Human Resources, Finance, and Community Development), public safety (Police and Fire), and Public Works. These services are supported by general City revenues such as sales taxes, property taxes, hotel taxes, and by specific program revenues such as fees.
Business-type activitiesinclude the Utility Fund (Water, Sewer, and GVMID) and the Marina Fund.
Unlike governmental services, these services are supported by charges paid by users for the amount of service they use.
Fund Financial Statements. A Fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Brisbane, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the City’s funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on the near-term inflows and outflow of spendable resources, as well as on balances of spendable 6 B.
Review FY23 Draft of Annual Comprehensive Financial Report Page 4 of 5 resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains individual governmental funds. Information is presented separately in the Fund Financials by major funds. The General Fund is always considered a major fund while other major funds are determined by formula and may change from year to year. Data from the nonmajor governmental funds is combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the required supplementary information section of this report.
Proprietary funds. The City of Brisbane maintains two different types of proprietary funds.
Enterprise funds are used to report the same functions presented as business-type activities in the government-wide statements. The City uses enterprise funds to account for its Water and Sewer Utility Services and for its Marina. Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for the management of its employee’s health and retirement benefits (health, dental, fringe & OPEB), cost allocation of city-wide assets (vehicles and facility maintenance) and risk management (workers compensation and liability insurance).
Proprietary funds statements provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Utility and the Marina Funds which are both considered major funds.
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 Government-Wide Financial Statements and any related profits or losses are returned to the activities that created them, along with any residual net assets of the Internal Service Funds. Individual fund data for the internal service funds are provided in the form of combining statements in the required supplementary information section of this report.
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Review FY23 Draft of Annual Comprehensive Financial Report Page 5 of 5 Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
Fund Balance and summary
Ending Fund Balance for FY2022/23 is reported at $15,635,000, an increase of $435,000 from prior year, or 2.9%. The unassigned balance of $9.8 million would be further reduced based on fund commitments and the Reserve Policy adopted by Council to set money aside for recessions, unanticipated events and annual fluctuations in the budget, leaving $991, in available reserves.
Other notable events:
Atmospheric River Storms – Over the 2022-2023 New Year’s Day holiday weekend, recordsetting heavy rains and snow caused flooding caused dangerous flooding across the State of California. The City experienced heavy rains and high tides which caused flooding in low lying areas of the City and significant debris flow sent mud, water and other materials down several roads and recreational trails and into the storm drains and downed trees. The City is in the process of obtaining federal aid to reimburse the costs of clean-up, repairs, and mitigation to upgrade the storm drain system. Projected costs total $2,500,000, and the City expects to receive $1,900,000 as reimbursement from FEMA. Costs related to staff time are part of operating expenses. The majority of the repair costs would occur in FY24. Once payments are received from FEMA, a single audit will be required to review the accounting of related transactions.
Fiscal Impact
There is no fiscal impact by accepting this report.
Measure of Success
The City Council accepts the draft of the FY23 ACFR.
Attachments
FY2022-23 Annual Comprehensive Financial Report (Draft) Carolina Yuen ___________________________________
Carolina Yuen, Finance Director Clay Holstine, City Manager 8 B.
CITY OF BRISBANE
CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2023
Prepared by:
City of Brisbane, Finance Department
Carolina Yuen, Finance Director
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City of Brisbane
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
TABLE OF CONTENTS
i
INTRODUCTORY SECTION
Table of Contents ...................................................................................................................................... i Letter of Transmittal .................................................................................................................................v Organizational Chart .............................................................................................................................. xii Principal Officials of the City of Brisbane, California ......................................................................... xiii
FINANCIAL SECTION
Independent Auditor’s Report ..............................................................................................................1 Management’s Discussion and Analysis
(Required Supplementary Information, Unaudited) ....................................................................5 Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position ..........................................................................................................16 Statement of Activities ..............................................................................................................17 Fund Financial Statements:
Governmental Funds Financial Statements:
Balance Sheet .........................................................................................................................20 Reconciliation of the Governmental Funds Balance Sheet
with the Statement of Net Position ....................................................................................21 Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds ..........................................................................................................22 Reconciliation of the Net Change in Fund Balances – Total Governmental Funds with the Statement of Activities .........................................................................................23 Proprietary Funds Financial Statements:
Statement of Net Position ......................................................................................................26 Statement of Revenues, Expenses and Changes in Fund Net Position ..................................27 Statement of Cash Flows ........................................................................................................28 Fiduciary Funds Financial Statements:
Statement of Net Position ......................................................................................................30 Statement of Changes in Net Position ....................................................................................31 Notes to Basic Financial Statements .......................................................................................................33 UNAUDITED DRAFT - to be destroyed after review
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City of Brisbane
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
TABLE OF CONTENTS
ii
FINANCIAL SECTION (Continued)
Required Supplementary Information:
Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual:
General Fund .......................................................................................................................88 Low and Moderate Income Housing Asset Special Revenue Fund ....................................89 Schedule of Proportionate Share of the Net Pension Liability and Related Ratios - CalPERS Miscellaneous Cost-Sharing Defined Benefit Pension Plan...................................90 Schedule of Contributions -
CalPERS Miscellaneous Cost-Sharing Defined Benefit Pension Plan ..................................92 Schedule of Proportionate Share of the Net Pension Liability and Related Ratios – CalPERS Safety Cost-Sharing Defined Benefit Pension Plan ...............................................94 Schedule of Contributions –
CalPERS Safety Cost-Sharing Defined Benefit Pension Plan ...............................................96 Schedule of Changes in the Net Pension Liability and Related Ratios – PARS Miscellaneous Plan, A Single-Employer Defined Benefit Plan ..................................98 Schedule of Contributions –
PARS Miscellaneous Plan, A Single-Employer Defined Benefit Plan ................................100 Schedule of Changes in the City’s Net OPEB Liability and Related Ratios ...........................102 Schedule of Employer Contributions – OPEB Plan ................................................................103 Notes to Required Supplementary Information .......................................................................104 Supplemental Information:
Non-Major Governmental Funds:
Combining Balance Sheet ........................................................................................................110 Combined Schedule of Revenues, Expenditures and Changes in Fund Balances ...................116 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual .............................................................................................................122 Internal Service Funds:
Combining Statement of Net Position .....................................................................................130 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .................132 Combining Statement of Cash Flows ......................................................................................134 Fiduciary Funds:
Combining Statement of Net Position – Custodial Funds .......................................................138 Combining Statement of Changes in Net Positions – Custodial Funds ...................................140 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ......................143 UNAUDITED DRAFT - to be destroyed after review
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City of Brisbane
Annual Comprehensive Financial Report
For the Year Ended June 30, 2023
TABLE OF CONTENTS
iii
STATISTICAL SECTION (Unaudited)
Net Position by Component ...........................................................................................................147 Changes in Net Position .................................................................................................................148 Fund Balances of Governmental Funds .........................................................................................150 Changes in Fund Balance of Governmental Funds ........................................................................152 Governmental Activities Tax Revenues by Source ........................................................................154 Assessed Value and Estimated Actual Value of Taxable Property ................................................156 Property Tax Rates .........................................................................................................................158 Principal Property Taxpayers .........................................................................................................159 Property Tax Levies and Collections .............................................................................................160 Ratios of Outstanding Debt by Type ..............................................................................................161 Ratios of General Bonded Debt Outstanding .................................................................................162 Direct and Overlapping Governmental Activities Debt .................................................................163 Legal Debt Margin Information .....................................................................................................164 Pledged Revenue Coverage ............................................................................................................166 Demographic and Economic Statistics ...........................................................................................167 Principal Employers .......................................................................................................................168 Full-Time Equivalent City Government Employees by Function ..................................................170 Operating Indicators by Function ...................................................................................................172 Capital Asset Statistics by Function ...............................................................................................174 UNAUDITED DRAFT - to be destroyed after review
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of Brisbane, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Brisbane (City), California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
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Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would be expected to influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal controlrelated matters that we identified during the audit.
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other required supplementary information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated DATE, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Pleasant Hill, California
DATE
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STATEMENT OF NET POSITION AND
STATEMENT OF ACTIVITIES
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 summarizes the financial position of all of the City’s Governmental Activities in a single column, and the financial position of all of the City’s Business-Type Activities in a single column; these 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. The City’s Business-Type Activities include all its Enterprise Fund activities, which includes the Utility Fund (Water, Sewer, and GVMID) and Marina Enterprise Fund.
The Statement of Activities reports increases and decreases in the City’s net position. It presents the City’s expenses first, listed by program, and follows 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 businesstype program. The City’s general revenues are then listed in the Governmental Activities or BusinessType Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.
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CITY OF BRISBANE
STATEMENT OF NET POSITION
JUNE 30, 2023
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments available for operations (Note 3) $24,748,443 $6,462,883 $31,211,326 Restricted cash and investments (Note 3) 1,558,575 93 1,558,668 Accounts receivable 1,935,082 1,252,953 3,188,035
Taxes receivable 2,163,854 649 2,164,503
Internal balance (Note 4D) 371,320 (371,320)
Accrued interest 119,080 32,800 151,880
Prepaids 4,136 4,136
Noncurrent assets:
Loans receivable, net (Note 5) 3,326,692 2,295,996 5,622,688 Capital assets (Note 6):
Non-depreciable 17,632,054 876,202 18,508,256
Depreciable, net 53,526,804 31,541,242 85,068,046
Total Assets 105,386,040 42,091,498 147,477,538
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows (Note 9) 17,713,745 999,750 18,713,495 OPEB related deferred outflows (Note 10) 1,171,903 324,237 1,496,140 Total Deferred Outflows of Resources 18,885,648 1,323,987 20,209,635
LIABILITIES
Current liabilities:
Accounts payable 893,968 831,643 1,725,611
Accrued payroll 754,356 62,106 816,462
Interest payable 58,705 82,888 141,593
Deposits 2,361,583 211,948 2,573,531
Claims payable - due within one year (Note 12) 555,188 555,188 Compensated absences - due within one year (Note 1F) 548,638 22,527 571,165 Long-term debt - due within one year (Note 7) 761,969 845,000 1,606,969 Unearned revenue 527,901 716,346 1,244,247
Noncurrent liabilities:
Claims payable - due in more than one year (Note 12) 1,121,773 1,121,773 Compensated absences - due in more than one year (Note 1F) 666,487 67,583 734,070 Net pension liability (Note 9) 27,920,690 1,448,853 29,369,543 Net OPEB liability (Note 10) 4,098,251 897,230 4,995,481 Long-term debt - due in more than one year (Note 7) 17,696,313 6,678,000 24,374,313 Total Liabilities 57,965,822 11,864,124 69,829,946
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows (Note 9) 7,621,373 199,375 7,820,748 OPEB related deferred inflows (Note 10) 1,543,504 259,916 1,803,420 Total Deferred Inflows of Resources 9,164,877 459,291 9,624,168 NET POSITION (Note 8)
Net investment in capital assets 53,054,576 26,697,537 79,752,113 Restricted for:
Pension and employee benefits program 1,384,156 1,384,156 Capital projects 3,660,541 758,885 4,419,426
Debt service 961,736 961,736
Specific projects and programs 9,268,289 9,268,289
Total Restricted Net Position 15,274,722 758,885 16,033,607 Unrestricted (11,188,309) 3,635,648 (7,552,661)
Total Net Position $57,140,989 $31,092,070 $88,233,059
See accompanying notes to financial statements
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CITY OF BRISBANE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities:
General government $11,021,805 $9,537,272 $972,235 ($512,298) ($512,298) Public safety - police 5,689,291 61,080 400,094 (5,228,117) (5,228,117) Public safety - fire 3,864,335 586,918 (3,277,417) (3,277,417) Public works 5,418,255 548,931 $26,500 (4,842,824) (4,842,824) Parks and recreation 3,069,260 808,569 (2,260,691) (2,260,691) Interest on long-term debt 261,273 (261,273) (261,273)
Total Governmental Activities 29,324,219 11,542,770 1,372,329 26,500 (16,382,620) (16,382,620) Business-type Activities:
Water 2,416,475 1,949,472 ($467,003) (467,003)
Sewer 2,428,222 1,277,679 (1,150,543) (1,150,543)
Guadalupe Valley Municipal
Improvement District 2,580,658 2,696,251 115,593 115,593 Marina 1,646,363 2,317,877 671,514 671,514
Total Business-type Activities 9,071,718 8,241,279 (830,439) (830,439) Total Primary Government $38,395,937 $19,784,049 $1,372,329 $26,500 (16,382,620) (830,439) (17,213,059) General revenues:
Taxes:
Property taxes 6,201,371 34,827 6,236,198
Sales taxes 6,406,312 6,406,312
Transient occupancy tax 2,151,105 2,151,105
Other taxes 2,383,063 2,383,063
Miscellaneous revenues 832,925 832,925
Investment earnings 493,564 (97,398) 396,166
Developer contributions 60,000 60,000
Transfers (Note 4C) 28,892 (28,892)
Total General Revenues and Transfers 18,497,232 (31,463) 18,465,769 Change in Net Position 2,114,612 (861,902) 1,252,710
Net Position-Beginning 55,026,377 31,953,972 86,980,349 Net Position-Ending $57,140,989 $31,092,070 $88,233,059 See accompanying notes to financial statements
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FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year.
The funds described below were determined to be Major Funds by the City in fiscal year 2023.
Individual non-major funds may be found in the Supplemental Section.
General Fund
This fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except for those accounted for in another fund.
Low/Mod Income Housing Assets Special Revenue Fund
This fund accounts for the activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency. The activities are governed by California redevelopment law and must be used to provide housing for people with low and moderate incomes.
Capital Projects Fund
This fund was established to track all non-major construction and capital projects. Project budgets carryover year to year until completed.
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Low/Mod
Income Housing Non-Major Total
Assets Special Capital Governmental Governmental
General Fund Revenue Fund Projects Fund Funds Funds
ASSETS
Cash and investments (Note 3) $5,089,010 $4,477,504 $13,028,428 $22,594,942 Restricted cash and investments (Note 3) 1,384,156 1,384,156 Accounts receivable, net 1,834,113 1,834,113
Interest receivable 37,692 20,081 53,012 110,785
Taxes receivable 2,125,322 38,532 2,163,854
Prepaids 4,136 4,136
Due from other funds (Note 4A) 5,057,840 5,057,840
Loans receivable (Note 5) 443,750 2,882,942 3,326,692
Advances to other funds (Note 4B) 3,136,320 3,136,320
Total Assets $19,112,339 $7,380,527 $13,119,972 $39,612,838
LIABILITIES
Accounts payable $673,428 $21,825 $160,516 $855,769
Accrued payroll 512,580 11,762 524,342
Due to other funds (Note 4A) $4,042,874 112,907 4,155,781 Deposits payable 2,291,273 14,395 55,915 2,361,583
Interest payable 16,177 16,177
Advances from other funds (Note 4B) 2,765,000 2,765,000 Unearned revenue 527,901 527,901
Total Liabilities 3,477,281 21,825 6,838,446 869,001 11,206,553
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - loans receivable 2,882,942 2,882,942 Total Deferred Inflows of Resources 2,882,942 2,882,942 FUND BALANCES (Note 8)
Nonspendable 3,584,206 3,584,206
Restricted 1,384,156 4,475,760 7,222,958 13,082,874
Assigned 841,666 5,153,718 5,995,384
Unassigned 9,825,030 (6,838,446) (125,705) 2,860,879
Total Fund Balances (Deficit) 15,635,058 4,475,760 (6,838,446) 12,250,971 25,523,343 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $19,112,339 $7,380,527 $13,119,972 $39,612,838
CITY OF BRISBANE
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2023
See accompanying notes to financial statements
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CITY OF BRISBANE
Reconciliation of the
GOVERNMENTAL FUNDS -- BALANCE SHEET
with the
STATEMENT OF NET POSITION
JUNE 30, 2023
Total fund balances reported on the Governmental Funds Balance Sheet $25,523,343 Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following:
CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds 71,158,858
ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance and central services and maintenance to individual governmental funds. The net current assets of the Internal Service Funds are therefore included in Governmental Activities in the following line items in the Statement of Net Position.
Cash and investments 2,327,920
Accounts and interest receivable 109,264
Accounts payable and accrued liabilities (38,199)
Accrued payroll (230,014)
Due to other funds (902,059)
Accrued claims payable (1,676,961)
ACCRUAL OF NON-CURRENT REVENUES AND EXPENSES
Revenues which are unavailable on the Fund Balance Sheets because they are not available currently are taken into revenue in the Statement of Activities. 2,882,942
LONG-TERM ASSETS AND LIABILITIES
The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Funds:
Net pension liability, deferred outflows and deferred inflows (17,828,318) Long-term debt (18,458,282)
Net OPEB liability, deferred outflows and deferred inflows (4,469,852) Compensated absences (1,215,125)
Interest payable (40,288)
NET POSITION OF GOVERNMENTAL ACTIVITIES $57,140,989
See accompanying notes to financial statements
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22 B.
Low/Mod
Income Housing Non-Major Total
Assets Special Capital Governmental Governmental
General Fund Revenue Fund Projects Fund Funds Funds
REVENUES
Taxes and special assessments $16,394,318 $938,012 $17,332,330 Intergovernmental 356,839 $26,500 405,329 788,668
Licenses, permits and fees 7,174,444 345,137 1,064 7,520,645 Charges for services 3,620,043 3,620,043
Fines and forfeitures 50,974 50,974
Use of money and property 422,239 $60,727 (72,672) 186,834 597,128 Other revenues 543,390 967,235 1,510,625
Total Revenues 28,562,247 60,727 298,965 2,498,474 31,420,413
EXPENDITURES
Current:
General government 10,233,185 37,800 10,270,985
Public safety - police 5,899,495 5,899,495
Public safety - fire 4,260,084 4,260,084
Public works 2,914,950 52,238 972,141 3,939,329
Parks and recreation 2,868,778 2,868,778
Capital outlay 5,553,080 888,334 118,932 6,560,346
Debt service:
Principal 13,751 871,333 885,084
Interest and fiscal charges 453 1,745 418,577 420,775
Total Expenditures 31,743,776 52,238 890,079 2,418,783 35,104,876
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (3,181,529) 8,489 (591,114) 79,691 (3,684,463)
OTHER FINANCING SOURCES (USES)
Lease 5,544,819 5,544,819
Transfers in (Note 4C) 168,136 155,157 1,584,103 1,907,396 Transfers (out) (Note 4C) (2,096,658) (323,293) (2,419,951) Total Other Financing Sources (Uses) 3,616,297 155,157 1,260,810 5,032,264 NET CHANGES IN FUND BALANCES 434,768 8,489 (435,957) 1,340,501 1,347,801 BEGINNING FUND BALANCES (DEFICITS) 15,200,290 4,467,271 (6,402,489) 10,910,470 24,175,542 ENDING FUND BALANCES (DEFICITS) $15,635,058 $4,475,760 ($6,838,446) $12,250,971 $25,523,343 See accompanying notes to financial statements
CITY OF BRISBANE
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2023
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23 B.
CITY OF BRISBANE
Reconciliation of the
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the Statement of Activities
FOR THE YEAR ENDED JUNE 30, 2023
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $1,347,801 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.
The capital outlay and other capitalized expenditures are therefore added back to fund balance 5,504,944 Net retirements are deducted from the fund balance 401,663 Depreciation expense is deducted from the fund balance (2,085,797)
LONG-TERM LIABILITIES
Repayment of bond principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities.
Proceeds from leases (5,544,819)
Repayments of debt principal and interest are added back to fund balance 1,043,999 Pension related expenses 2,500,389
OPEB related expenses (7,733)
ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):
Accrued interest on long-term debt 587
Compensated absences 212,597
ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds.
The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with governmental funds is reported with governmental activities, because they service those activities.
Change in Net Position - All Internal Service Funds (1,259,019) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $2,114,612 See accompanying notes to financial statements
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REVIEW DRAFT 3/28/2024 7:38 PM
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.
The concept of major funds established by GASB Statement 34 extends to Proprietary Funds. The City has identified the funds below as major enterprise funds in fiscal 2023.
GASB 34 does not provide for the disclosure of budget vs. actual comparison regarding proprietary funds that are major funds.
Utility Fund is comprised of the following services:
Water
Represents expenses incurred in the purchase and distribution of water to City residents and businesses; water users support this activity through payment of water billings which are rendered based on read meters.
Sewer
Represents expenses incurred in the collection and pumping of sewage waste to the City of San Francisco Sewer Treatment Plant where it is treated and discharged to the bay; sewer users support this activity through payment of sewer service billings.
Guadalupe Valley Municipal Improvement District
Represents expenses related to providing water, sewer, and other municipal services to businesses and residents located within the district boundaries. Revenues to support this activity are derived from property taxes, water, and sewer billings and special assessments.
Marina Enterprise Fund
This fund accounts for expenses incurred in the operation and maintenance of a boat harbor and marina; berth rentals provide the source of revenue to support this activity.
Internal Service Funds
These funds are used to account for interdepartmental operations where it is the stated intent that costs of providing services to the departments of the City on a continuing basis be financed or recovered primarily by charges to the user departments.
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25 B.
CITY OF BRISBANE
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2023
Business-type Activities-Enterprise Funds
Governmental
ActivitiesInternal Service
Utility Marina Totals Funds
ASSETS
Current Assets:
Cash and investments (Note 3) $3,889,669 $2,573,214 $6,462,883 $2,153,501 Restricted cash and investments (Note 3) 93 93 174,419
Accounts receivable, net 1,167,059 85,894 1,252,953 100,969 Taxes receivable 649 649
Interest receivable 18,307 14,493 32,800 8,295
Total Current Assets 5,075,777 2,673,601 7,749,378 2,437,184 Noncurrent Assets:
Loans receivable (Note 5) 2,295,996 2,295,996
Capital assets (Note 6)
Non-depreciable 876,202 876,202
Depreciable, net 26,042,509 5,498,733 31,541,242
Total Noncurrent Assets 26,918,711 7,794,729 34,713,440 Total Assets 31,994,488 10,468,330 42,462,818 2,437,184
DEFERRED OUTFLOWS
Deferred outflows related to pensions (Note 9) 699,869 299,881 999,750 Deferred outflows related to OPEB (Note 10) 73,727 250,510 324,237 Total Deferred Outflows 773,596 550,391 1,323,987
LIABILITIES
Current Liabilities:
Accounts payable 791,978 39,665 831,643 38,199
Due to other funds (Note 4A) 902,059
Accrued payroll 45,254 16,852 62,106 230,014
Interest payable 70,558 12,330 82,888 2,240
Accrued claims payable (Note 12) 555,188
Compensated absences due within one year (Note 1F) 16,435 6,092 22,527 Bonds payable due within one year (Note 7) 415,000 430,000 845,000 Deposits 19,299 192,649 211,948
Unearned revenue 716,346 716,346
Total Current Liabilities 2,074,870 697,588 2,772,458 1,727,700 Noncurrent Liabilities:
Compensated absences due in more than one year (Note 1F) 49,306 18,277 67,583 Accrued claims payable (Note 12) 1,121,773
Advances from other funds (Note 4B) 371,320 371,320
Bonds payable due in more than one year (Note 7) 5,305,000 1,373,000 6,678,000 Net pension liability (Note 9) 1,014,197 434,656 1,448,853 Net OPEB liability (Note 10) 204,011 693,219 897,230
Total Noncurrent Liabilities 6,572,514 2,890,472 9,462,986 1,121,773 Total Liabilities 8,647,384 3,588,060 12,235,444 2,849,473
DEFERRED INFLOWS
Deferred inflows related to pensions (Note 9) 139,667 59,708 199,375 Deferred inflows related to OPEB (Note 10) 59,100 200,816 259,916 Total Deferred Inflows 198,767 260,524 459,291
NET POSITION (Note 8)
Net investment in capital assets 21,198,804 5,498,733 26,697,537 Restricted for capital projects 758,885 758,885
Unrestricted 1,964,244 1,671,404 3,635,648 (412,289)
Total Net Position $23,921,933 $7,170,137 $31,092,070 ($412,289) See accompanying notes to financial statements
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26 B.
CITY OF BRISBANE
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
Business-type Activities-Enterprise Funds
Governmental
ActivitiesInternal Service
Utility Marina Totals Funds
OPERATING REVENUES
Charges for services $5,923,402 $2,298,453 $8,221,855 $2,250,686 Other revenues 19,424 19,424 5,689
Total Operating Revenues 5,923,402 2,317,877 8,241,279 2,256,375
OPERATING EXPENSES
Cost of sales and services 3,965,788 617,294 4,583,082 26,399 General and administrative 2,807,395 921,587 3,728,982 2,815,499 Depreciation 652,172 107,482 759,654
Other expenses 1,204,469
Total Operating Expenses 7,425,355 1,646,363 9,071,718 4,046,367 Operating Income (Loss) (1,501,953) 671,514 (830,439) (1,789,992)
NONOPERATING REVENUES (EXPENSES)
Taxes and assessments 34,827 34,827
Investment income 127,745 55,519 183,264 (10,474)
Interest expense (216,795) (63,867) (280,662)
Total Nonoperating Revenues (Expenses) (54,223) (8,348) (62,571) (10,474) Income (Loss) Before Contributions and Transfers (1,556,176) 663,166 (893,010) (1,800,466) Developer contributions 60,000 60,000
Transfers in (Note 4C) 47,555 47,555 541,447
Transfers out (Note 4C) (60,289) (16,158) (76,447)
Net Contributions and Transfers 47,266 (16,158) 31,108 541,447 Change in net position (1,508,910) 647,008 (861,902) (1,259,019) BEGINNING NET POSITION 25,430,843 6,523,129 31,953,972 846,730 ENDING NET POSITION $23,921,933 $7,170,137 $31,092,070 ($412,289) See accompanying notes to financial statements
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27 B.
CITY OF BRISBANE
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
Business-type Activities-Enterprise Funds
Governmental
ActivitiesInternal Service
Utility Marina Totals Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $5,835,496 $2,298,188 $8,133,684 $2,259,474 Cash payments to suppliers (6,876,595) (1,573,341) (8,449,936) (3,456,005) Cash Flows from Operating Activities (1,041,099) 724,847 (316,252) (1,196,531)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Taxes and assessments 34,603 34,603
Due to other funds 249,796
Advances from other funds 1,046 1,046
Transfers in 47,555 47,555 541,447
Transfers (out) (60,289) (16,158) (76,447)
Cash Flows from Noncapital Financing Activities 21,869 (15,112) 6,757 791,243
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Adjustments of property, plant and equipment 1 49 50
Principal payment of debt (400,000) (417,000) (817,000) Interest paid (222,598) (65,727) (288,325)
Developer contributions received 60,000 60,000
Cash Flows from Capital and
Related Financing Activities (562,597) (482,678) (1,045,275)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest paid (29,006)
Investment income receipts 121,529 49,262 170,791 17,145 Cash Flows from Investing Activities 121,529 49,262 170,791 (11,861) Net Cash Flows (1,460,298) 276,319 (1,183,979) (417,149) Cash and investments at beginning of period 5,350,060 2,296,895 7,646,955 2,745,069 Cash and investments at end of period $3,889,762 $2,573,214 $6,462,976 $2,327,920 Reconciliation of Operating Income (Loss) to Cash Flows from Operating Activities:
Operating income (Loss) ($1,501,953) $671,514 ($830,439) ($1,789,992) Adjustments to reconcile operating income (Loss)
to cash flows from operating activities:
Depreciation 652,172 107,482 759,654
Change in assets, deferred outflows, liabilities
and deferred inflows:
Accounts receivable (87,906) (19,689) (107,595) 14
Accounts payable and accrued liabilities 48,542 (5,914) 42,628 (134,137) Accrued payroll 1,225 3,195 4,420 143,890
Accrued claims payable 583,694
Compensated absences 4,840 3,918 8,758
Deposits 870 5,750 6,620
Net pension liability, deferred inflows and deferred outflows (171,868) (85,509) (257,377) Net OPEB liability, deferred inflows and deferred outflows 12,979 44,100 57,079 Cash Flows from Operating Activities ($1,041,099) $724,847 ($316,252) ($1,196,531) See accompanying notes to financial statements
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REVIEW DRAFT 3/28/2024 7:38 PM
FIDUCIARY FUNDS
Fiduciary funds are presented separately from the Government-wide and Fund financial statements. The City had the following types of fiduciary funds in fiscal year 2023:
Private Purpose Trust Fund
This fund is used to account for resources legally held in trust for special purposes.
Custodial Funds
These funds are custodial in nature and do not involve measurement of results of operations. They are used to account for assets held in a custodial capacity for others and therefore cannot be used to support the City’s program.
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29 B.
CITY OF BRISBANE
FIDUCIARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2023
Successor
Agency
Private-Purpose
Trust Custodial
Fund Funds
ASSETS
Cash and investments (Note 3) $229,251
Restricted cash and investments (Note 3) $3,022,173
Accounts receivable, net 4,133 92,066
Interest receivable 380
Total Assets 3,026,306 321,697
DEFERRED OUTFLOW OF RESOURCES
Deferred charges on refunding (Note 15C) 938,431
Total Deferred Outflow of Resources 938,431
LIABILITIES
Accounts payable 1,891 1,224,046
Deposits payable 2,607,118
Interest payable 88,061
Loans payable to City (Note 15B) 2,295,996
Long Term Debt (Note 15B):
Due within one year 1,570,000
Due in more than one year 3,535,000
Total Liabilities 7,490,948 3,831,164
NET POSITION (DEFICIT)
Restricted for:
Held in trust for private-purpose (3,526,211)
Organizations and other governments (3,509,467)
Total Net Position (Deficit) ($3,526,211) ($3,509,467)
See accompanying notes to financial statements
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30 B.
Successor
Agency
Private-Purpose
Trust Custodial
Fund Funds
ADDITIONS
Investment income $1,157 $630
Other revenue 2,324,280 288,385
Total additions 2,325,437 289,015
DEDUCTIONS
Public works 12,000
Interest and fiscal charges 500,412
Professional services 2,252,393
Total deductions 512,412 2,252,393
CHANGES IN NET POSITION 1,813,025 (1,963,378)
(5,339,236) (1,546,089)
ENDING NET POSITION (DEFICIT) ($3,526,211) ($3,509,467) See accompanying notes to financial statements
BEGINNING NET POSITION (DEFICIT)
CITY OF BRISBANE
STATEMENT OF CHANGES IN NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
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31 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City was incorporated on November 27, 1961, under the General Laws of the State of California and enjoys all the rights and privileges pertaining to such “General Law” cities. The City uses the City Council/Manager form of government. The financial reporting entity consists of (a) the primary government, the City, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.
The financial statements and accounting policies of the City conform with generally accepted accounting principles applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Significant accounting policies are summarized below:
A. Reporting Entity
The accompanying basic financial statements present the financial activity of the City, which is the primary government presented, along with the financial activities of its component units, which are entities for which the City is financially accountable. Although they are separate legal entities, blended component units are in substance part of the City’s operations and are reported as an integral part of the City’s financial statements. The term City, as used in this report, refers to the City and its component units as a consolidated entity. The City’s component units, which are described below, are all blended. • Brisbane Public Financing Authority (Authority)
• Guadalupe Valley Municipal Improvement District (District) • Brisbane – Guadalupe Valley Municipal Improvement District Finance Authority (B/GVM District)
Brisbane Public Financing Authority was formed on April 8, 1991, by and between the City and the former Redevelopment Agency (Agency) of the City. The Authority was created for the purpose of providing financing of public capital improvements for the City and the Former Agency. The Authority has the power to issue bonds to pay the cost of any public capital improvement. The Authority has no independent staff and consequently is dependent upon the City’s officers and employees. The Governing Board of the Authority is comprised of the members of the City Council of the City and the members of the Board of the Former Agency.
Guadalupe Valley Municipal Improvement District was formed as an enterprise activity in May 1990. The purpose of the District is to provide capital and infrastructure improvements to residents of the area. The members of the City Council act as the governing body of the District.
Brisbane – Guadalupe Valley Municipal Improvement District Finance Authority was formed as a financing activity in September 2014. The purpose of the B/GVM District is to provide a financing mechanism for residents of the area. The members of the City Council act as the governing body of the B/GVM District.
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32 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation
The City’s Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard-setting body for establishing accounting and financial reporting standards followed by governmental entities in the U.S.A.
These Statements require that the financial statements described below be presented.
Government-Wide Financial 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. Eliminations have been made to minimize the double counting of internal activities. 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 blended component units and fiduciary funds. 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 non-exchange transactions or ancillary activities.
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33 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Major Funds
The City’s major governmental and business-type funds are identified and presented separately in the fund financial statements. All other funds, called non-major funds, are combined and reported in a single column, regardless of their fund types.
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 - The General Fund is established to account for the revenues and expenditures to carry out basic governmental activities of the City such as general government, public safety, parks and recreation and public works. This fund accounts for all financial transactions not accounted for in the other funds.
Low/Mod Income Housing Assets Special Revenue Fund - This fund accounts for the activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency. The activities are governed by California redevelopment law and must be used to provide housing for people with low and moderate incomes.
Capital Projects Fund - This fund was established to track all non-major construction and capital projects. Project budgets carryover year to year until completed.
The City reported all of its enterprise funds as major funds:
Utility Enterprise Fund - This fund accounts for revenues and expenses incurred for the water, sewer and Guadalupe Valley Municipal Improvement District.
Marina Enterprise Fund - This fund accounts for expenses incurred in the operation and maintenance of a boat harbor and marina; berth rentals provide the source of revenue to support this activity.
Internal Service Funds account for activities related to dental self-insurance, fringe benefits, flexible benefits, workers’ compensation, general liability, vehicle replacement, facilities maintenance and other post-employment benefits (OPEB).
Fiduciary Funds financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City's fiduciary funds represent custodial funds and private-purpose trust funds and are accounted for using the “economic resources” measurement focus. The private-purpose trust funds are used to account for resources legally held in trust for special purposes. The Custodial funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Both types of the funds are accounted for using accrual basis of accounting.
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CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Basis of Accounting
The government-wide and proprietary fund 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 general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources.
Those revenues susceptible to accrual are property, sales, transient occupancy and franchise taxes, special assessments, licenses for services and interest revenue. Fines, permits, and charges for services are not susceptible to accrual because they are not measurable until received in cash.
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.
The City may fund programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be 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.
Certain indirect costs are included in program expenses reported for individual functions and activities.
E. Interest Payable
In the Government-Wide Financial Statements, interest payable of long-term debt is recognized as the liability is incurred.
In the fund financial statements, proprietary fund types recognize the interest payable when the liability is incurred.
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35 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Compensated Absences
The City’s compensated absences include regular vacation, compensatory time-off, and personal leave. Employees earn varying amounts of vacation depending upon continuous tenure with the City. Use of vacation may be deferred to the following year, but the total amount of vacation may not exceed two years annual accrual without City Manager approval.
Vested compensated absence amounts are payable upon the employee’s separation from employment. Compensated absences for governmental activities are recorded as current and non-current in the Government-Wide Financial Statements. For proprietary funds, current and non-current liabilities for compensated absences are recorded as expenses in the GovernmentWide Financial Statements and the Fund Financial Statements.
The change in compensated absences was as follows at June 30, 2023:
Governmental
Activities
Business-Type
Activities Total
Beginning Balance $ 1,427,722 $ 81,353 $ 1,509,075
Additions 393,651 56,642 450,293
Payments (606,248) (47,885) (654,133)
Ending Balance $ 1,215,125 $ 90,110 $ 1,305,235
Current Portion $ 548,638 $ 22,527 $ 571,165
Non-current Portion $ 666,487 $ 67,583 $ 734,070
G. Property Taxes
Under California law, secured property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool and are then allocated to the cities based on complex formulas.
Lien Date January 1
Levy Date July 1
Due Date November 1 and February 1
Collection Date December 10 and April 10
Property taxes levied are recorded as revenue when received, in the fiscal year of levy, because of the adoption of the “alternate method of property tax distribution,” known as the Teeter Plan, by the City and the County of San Mateo. The Teeter Plan authorizes the Auditor/Controller of the County of San Mateo to allocate 100% of the secured property taxes billed, but not yet paid.
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36 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Use of Estimates
The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.
I. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of net position or balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
J. Pensions
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 Public Agency Retirement Services (PARS) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS and PARS. 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.
K. Other Post-Employment Benefits Other than Pensions
For purposes of measuring the net OPEB liability, deferred outflows/inflows of resources related to OPEB, and OPEB expense and information about the fiduciary net position of the City Retiree Benefits Plan (the Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the Plan recognizes benefits payments when due and payable in accordance with benefit terms. Investments are reported at fair value.
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37 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) L. 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.
M. New Governmental Accounting Standards Board Statement Implementation GASB Statement No. 91 – In May 2019, GASB issued Statement No. 91, Conduit Debt Obligations. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. The provisions of this Statement were implemented during fiscal year 2023. The implementation had no effect on the financial statements.
GASB Statement No. 94 – In March 2020, GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Some PPPs meet the definition of a service concession arrangement (SCA), which the Board defines in this Statement as a PPP in which (1) the operator collects and is compensated by fees from third parties; (2) the transferor determines or has the ability to modify or approve which services the operator is required to provide, to whom the operator is required to provide the services, and the prices or rates that can be charged for the services; and (3) the transferor is entitled to significant residual interest in the service utility of the underlying PPP asset at the end of the arrangement.
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38 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. New Governmental Accounting Standards Board Statement Implementation (Continued) This Statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). As defined in this Statement, an APA is an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction. The provisions of this Statement were implemented during fiscal year 2023. The implementation had no effect on the financial statements.
GASB Statement No. 96 – In May 2020, GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. The objective of this Statement is to provide guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. The provisions of this Statement were implemented during fiscal year 2023. The City inventoried it’s SBITAs and determined that there weren’t any meeting the criteria to be recorded under GASB 96.
NOTE 2 – BUDGETS AND BUDGETARY ACCOUNTING
A. Budgeting Procedures
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. A City Council goal setting session is scheduled to determine the major objectives of the City’s financial plan for the year. Goals are approved by the Council and incorporated into a detailed preliminary budget, which is issued for public comment. After a series of public hearings, the budget is adopted by the City Council prior to the beginning of the ensuing fiscal year (July 1).
2. The Administrative Services Director is authorized to transfer budgetary amounts within a single fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council.
3. Legally adopted budgets and formal budgetary integration is employed as a management control device during the year for the General Fund, certain special revenue funds, and the debt service funds. The Fire Training, Contract Employees, Tree Plant and Habitat Conservation Program Special Revenue Funds are special revenue funds with single focus purpose that when needed are approved by City Council or part of an existing contract and therefore did not have adopted budgets for the fiscal year. The capital projects funds did not have adopted budgets for the fiscal year, but all capital projects are approved by City Council prior to commitment. The legal level of budgetary control is the fund level.
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39 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 2 – BUDGETS AND BUDGETARY ACCOUNTING (Continued)
4. Budgets for those governmental funds budgeted are adopted on a basis consistent with GAAP.
5. Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended June 30, 2023, based on the calculations by City Management, proceeds of taxes did not exceed the appropriations limit.
6. Budgeted revenue amounts represent the original budget modified by adjustments authorized during the year. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the year which were contingent upon new or additional revenue sources and reappropriated amounts for prior year encumbrances. These necessary supplemental appropriations were immaterial in relation to the budget as originally adopted. The Administrative Services Director must approve adjustments to departmental budgets; however, management may amend the budgeted amounts within departmental expenditure classifications.
7. Appropriations lapse at the end of the fiscal year to the extent they have not been expended or encumbered and then are rebudgeted for the coming year.
B. Encumbrances
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders and contracts) outstanding at year-end are recorded. The commitments will be reappropriated and honored in the subsequent year.
C. Expenditures in Excess of Appropriations
The following funds had expenditures in excess of appropriations:
TABLE PENDING
The funds had sufficient fund balances or revenues to finance these expenditures.
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40 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 3 – CASH & INVESTMENTS
The City invests all funds, except cash with fiscal agents, in investment pools. The goal is to invest at the maximum yield, consistent with safety and liquidity, while individual funds can process payments for expenditures at any time. 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.
A. Classification
Cash and investments as of June 30, 2023, are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or agency agreements.
Cash and investments available for operations $ 31,211,326 Restricted cash and investments with fiscal agent 1,558,668 Total City Cash and Investments 32,769,994
Cash and investments in Fiduciary Funds 229,251
Restricted cash and investments in Fiduciary Funds 3,022,173 Total Fiduciary Cash and Investments 3,251,424
Total Cash and Investments $ 36,021,418
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.
B. Authorized Investments by the City
The City’s Investment Policy and the California Government Code allow the City to invest in the following, provided the credit ratings are acceptable of the issuers are acceptable to the City. The following also identifies certain provisions of the City and California Government Code that address interest rate risk, credit risk, and concentration of credit risk. This does not address the City’s investments of debt proceeds held by fiscal agents that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the Entity’s investment policy.
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41 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 3 – CASH AND INVESTMENTS (Continued)
Maximum Maximum
Maximum Minimum Allowed in Investment in
Authorized Investment Type Maturity Credit Quality Portfolio One Issuer California Local Agency Investment Fund N/A None None $75 million Negotiable Certificates of Deposit 5 years None 30% 15% Time Certificates of Deposit N/A None 30% 15%
Bankers Acceptances 180 days None 40% 15%
Commercial Paper 270 days A-1 25% 15%
Government Agency Securities 5 years None None None
Treasury Bonds, Bills, and Notes 5 years None None None Medium-Term Corporate Notes 5 years A 30% 15%
Mutual Funds 5 years None 20% 15%
C. Authorized Investments by Debt Agreements
The City 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 reserves to be used if the City fails to meet its obligations under these debt issues.
The California Government Code requires these funds to be invested in accordance with City ordinances, bond indentures or State statutes. The following identifies the investment types that are authorized for investments held by fiscal agents. The table also identifies certain permitted investments of these debt agreements:
Maximum Minimum
Authorized Investment Type Maturity Credit Quality
Treasury Bonds, Bills, and Notes 5 years None
Government Agency Securities 5 years None
Bankers Acceptances 180 days None
Repurchase Agreements 30 days N/A
Money Market Mutual Funds N/A AAAm
Commercial Paper 270 days A-1
Negotiable Certificates of Deposit 5 years None
California Local Agency Investment Fund N/A None
Time Certificates of Deposit N/A None
Medium-Term Corporate Notes 5 years AA
Mutual Funds 5 years None
There are no restrictions on the maximum amount invested in each security type or a maximum that can be invested in any one issuer.
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42 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 3 – CASH AND INVESTMENTS (Continued)
D. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value is to changes in market interest rates.
Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by the following table that shows the distribution to the City’s investments by maturity:
Investment Maturities
12 months 13 to 48 49 to 60
Investment Type or less months months Total
Securities of U.S. Government Agencies:
Federal Farm Credit Banks $973,470 $976,140 $1,949,610
Federal Home Loan Banks 974,730 12,528,040 $983,560 14,486,330 Time Certificates of Deposit:
Goldman Sachs Bank 240,200 240,200
Wells Fargo Bank 243,577 243,577
American Express National Bank 243,597 243,597
Money Market Mutual Funds 11,964,677 11,964,677
Local Agency Investment Fund 1,989,629 1,989,629
Total Investments $16,142,706 $13,991,354 $983,560 31,117,620 Cash in banks and on hand 4,903,798
Total Cash and Investments $36,021,418
E. 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 minimum rating required by the California Government Code, the City’s investment policy, or debt agreements and the actual rating as of June 30, 2023, for each investment type:
Investment Type Aaa/AAAm Not Rated Total
Securities of U.S. Government Treasury
and Agencies:
Federal Farm Credit Banks $1,949,610 $1,949,610
Federal Home Loan Banks 14,486,330 14,486,330
Money Market Mutual Funds 11,964,677 11,964,677
Local Agency Investment Fund $1,989,629 1,989,629
Time Certificates of Deposit 727,374 727,374
Total Investments $28,400,617 $2,717,003 31,117,620
Cash in banks and on hand 4,903,798
Total Cash and Investments $36,021,418
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43 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 3 – CASH AND INVESTMENTS (Continued)
F. Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. Under California Government Code Section 53651, depending on specific types of eligible securities, a bank must deposit eligible securities posted as collateral with its Agent having a fair value of 105% to 150% of the City’s cash on deposit. All of the City’s deposits are either insured by the Federal Depository Insurance Corporation (FDIC) or collateralized with pledged securities held in the trust department of the financial institutions in the City’s name.
G. Local Agency Investment Fund
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. The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF’s investment portfolio are collateralized mortgage obligation, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, and corporations. At June 30, 2023, these investments matured in an average of 260 days.
H. Cash, Cash Equivalents, and Investments
Each proprietary fund’s portion of Cash and Investments is in substance a demand deposit available to finance operations and is considered a cash equivalent in preparing the statement of cash flows.
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value.
Market value is used as fair value for those securities for which market quotations are readily available.
I. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation input used to measure the fair value of asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs.
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44 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 3 – CASH AND INVESTMENTS (Continued)
The following is a summary of the fair value hierarchy of the fair value of investments of the City as of June 30, 2023:
Level 2 Total
Investments by Fair Value Level:
Securities of U.S. Government Treasury
and Agencies: $16,435,940 $16,435,940
Time Certificates of Deposit 727,374 727,374
Total $17,163,314 17,163,314
Investments Measured at Amortized Cost:
Money Market Mutual Funds 6,841,116
Held by Trustee:
Money Market Mutual Funds 5,123,561
Investments Exempt from Fair Value Hierarchy:
Local Agency Investment Fund 1,989,629
Total Investments $31,117,620
Securities of the U.S. Government Agency’s $16.4 million and the Time Certificates of Deposits totaling $.7 million is classified in Level 2 of the fair value hierarchy, are valued using quoted prices for a non-active market portfolio at fiscal year-end. Fair value is defined as the quoted market value on the last trading day of the period. These prices are obtained from various pricing sources by the custodian banks.
NOTE 4 – INTERFUND TRANSACTIONS
A. Due To/From Other Funds
All due to/from other funds represent temporary loans from the General Fund to cover cash flow shortfalls and are expected to be repaid shortly after the end of the fiscal year.
At June 30, 2023, the City had the following due to/from other funds:
Due from Fund:
Capital Projects
Fund
Non-Major
Governmental
Funds
Internal Service
Funds Amount
General Fund $4,042,874 $112,907 $902,059 $5,057,840
Total $4,042,874 $112,907 $902,059 $5,057,840
Due to Fund:
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45 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 4 – INTERFUND TRANSACTIONS (Continued)
B. Advances To/From Other Funds
At June 30, 2023, the City had the following advances to/from other funds:
Capital Marina
From Fund: Projects Fund Enterprise Fund Amount
General Fund $2,765,000 $371,320 $3,136,320
Total $2,765,000 $371,320 $3,136,320
To Fund:
In March 2013, the City approved an advance from the General Fund to the Capital Improvement Fund in the amount of $850,000. It was issued for the purpose of financing a property purchase from the Brisbane Housing Authority. The term of the advance is ten years.
It bears interest at 1.89% annually and payments are due each March 1 in the amount of $94,084. In fiscal year 2018, the City approved another advance from the General Fund to the Capital Improvement Fund in the amount of $3,615,000. It was issued for the purpose of financing a new public library. The balance of the advance as of June 30, 2023 was $2,765,000.
In fiscal year 2015 and 2018, the City approved an advance of $117,929 and $253,391 respectively, from the General Fund to the Marina Enterprise Fund for dredging. The balance of the advance as of June 30, 2023 was $371,320.
C. Transfers In/Out
The City had the following transfers in/out for the year ended June 30, 2023:
Transfers In
Capital Non-Major Utility Internal
General Projects Governmental Enterprise Service
Fund Fund Funds Fund Fund Total
Transfers Out
General Fund $1,584,103 $47,555 $465,000 $2,096,658
Non-Major Governmental Funds $168,136 $155,157 323,293
Enterprise Fund:
Utility 60,289 60,289
Marina 16,158 16,158
Total $168,136 $155,157 $1,584,103 $47,555 $541,447 $2,496,398 Transfers out from the General Fund, Special Revenue Funds, Utility Enterprise Fund, and the Marina Enterprise Fund were for debt service payments.
Transfers into the Internal Service funds were for reimbursement of retirement payments and to initiate the Facilities Maintenance Fund.
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46 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 4 – INTERFUND TRANSACTIONS (Continued)
D. 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.
NOTE 5 – LOANS RECEIVABLE
At June 30, 2023, the City had the following loans receivable:
Balance Balance
June 30, 2022 Deletions June 30, 2023
Governmental Funds:
Loan to Administrative Services Director $318,750 $318,750 Loan to City Manager 200,000 $75,000 125,000
Bridge Housing Corporation Loan 2,336,086 2,336,086
First Time Home Buyers 546,856 546,856
Total Governmental Funds 3,401,692 75,000 3,326,692
Proprietary Funds:
Loan to City Engineer/Director
of Public Works 1,046 1,046 -
Loan to Successor Agency 2,295,996 2,295,996
Total Proprietary Funds 2,297,042 1,046 2,295,996
Total $5,698,734 $76,046 $5,622,688
A. On April 1, 2002, the City made a loan to the Administrative Services Director in the amount of $318,750 for the purchase of a home. The entire principal balance together with payment of the “equity sharing amount” is due and payable immediately upon any sale or transfer of the property, except for a transfer of legal title for estate planning purposes to a revocable living trust for which the borrower is trust or and trustee. The loan is secured by the deed of trust.
B. On September 10, 2008, the City modified the City Manager loan agreement for an additional $200,000. The additional amount, together with the payment of the “equity sharing amount” is due and payable upon any sale or transfer of the property without the prior written consent of the City (except for the transfer of legal title for estate planning purposes to a revocable living trust of which borrowers are the trustors and trustee), or eighteen months after the effective date of termination of City Manager’s employment with the City.
C. In 1999, the Bridge Housing Corporation entered into a loan agreement with the former Redevelopment Agency (now housing successor) for an amount not to exceed $2,500,000.
The obligation to repay the loan is evidenced by a promissory note. The terms of the note provide that Bridge Housing Corporation make repayments to the extent of surplus cash.
Annual payments are due and payable in arrears no later than June 1 each year with respect to the previous calendar year, and shall be accompanied by the developer’s report of surplus cash. As of June 30, 2023, the balance of the loan was $2,336,086.
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47 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 5 – LOANS RECEIVABLES (Continued)
D. The former Redevelopment Agency (now housing successor) has provided various loan programs for First Time Homebuyers. In general, they provide secondary financing for low and moderate buyers in the City. The loans have deferred payments in order to allow the buyers to maximize their purchasing capacity. Payment of principal and interest is due upon sale of property. Units are sold at market value and the former Agency also receives as payment a share of the appreciation based on the percentage of the former Agency loan to original purchase price. The former Agency has first right of refusal to purchase unit to roll over to new eligible buyer.
E. City Loans to Successor Agency
The Marina Enterprise Fund had recorded a loan receivable in the amount of $2,295,996 from the Successor Agency Private Purpose Trust Fund. The loan will be paid from future redevelopment property tax trust fund (RPTTF) distribution revenue from the County. The loan comprises of the following:
On March 1, 2001, the former Agency issued $15,000,000 of Brisbane Community Redevelopment Project Area #1 2001 Tax Allocation Bonds (2001 Tax Allocation Bonds) to refund the 1984 Tax Allocation Bonds and to satisfy the former Agency’s obligation under the 1984 Lease/Leaseback agreement (Deferred Rent Payable). A portion of the proceeds of the 1984 Tax Allocation Bonds were used to build the Marina.
Concurrently, the former Agency and the Authority also entered into a bond purchase contract (Contract) on March 1, 2001. According to the Contract, the Authority issued Brisbane Public Financing Authority (BPFA) 2001 Revenue Bonds, Series A in the amount of $26,300,000 to acquire the Bonds.
As part of the funding for this debt, the former Agency provided an equity contribution of $295,996 to be placed in an Escrow Fund along with the proceeds of the former Agency Bonds. The City contributed $2,000,000 towards the purchase of the 2001 Tax Allocation Bonds.
Therefore, prior to fiscal 2015, a total of $2,295,996 was recorded as an advance from the Marina Fund to the BPFA 2001 Revenue Bonds Series A Debt Service Fund which in turn advanced the amount to the former Agency. The advance was to be paid from future tax increment of the former Agency after the bonds have matured. With the dissolution of the Agency effective February 1, 2012, the Successor Agency assumed the obligation to repay the advance above.
In fiscal year 2014, the City unwound the advance from the Marina Fund (formerly the Parks and Recreations Enterprise Fund) to the BPFA 2001 Revenue Bonds Series A Debt Service Fund and the loan receivable from the BPFA 2001 Revenue Bonds Series A Debt Service Fund to the former Agency. As of June 30, 2023, the Successor Agency recorded a loan payable in the amount of $2,295,966 and the City Marina Enterprise Fund recorded a loan receivable in the amount of $2,295,996.
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48 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 5 – LOANS RECEIVABLE (Continued)
F. On October 22, 2001, the City made a loan to the City Engineer/Director of Public Works in the amount of $320,000 for the purchase of a home. The entire principal balance together with payment of the “equity sharing amount” is due and payable immediately upon any sale or transfer of the property, except for a transfer of legal title for estate planning purposes to a revocable living trust for which borrower is trustor and trustee. The loan is secured by the Deed of Trust. On October 1, 2005, the City modified the agreement to include interest in the amount of $45,479. As of June 30, 2023, the balance of the loan was paid off.
NOTE 6 – CAPITAL ASSETS
Capital assets, which include land, buildings, improvements, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or businesstype activities in the Government-Wide Financial Statements. Capital assets are recorded at historical cost or estimated historical cost if actual cost is not available. Gifts or contributions of capital assets are recorded at fair market value when received. City policy has set the capitalization threshold for reporting capital assets at the following:
General Capital Assets $5,000
Infrastructure Capital Assets 25,000
Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets as follows:
Buildings and structures 65 years
Machinery and equipment 5 – 20 years
Infrastructure 50 – 65 years
Improvements other than buildings 20 – 59 years
Water distribution and sewer collection 65 years
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49 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 6 – CAPITAL ASSETS (Continued)
Changes in capital assets during the year ended June 30, 2023 comprise of the following:
Balance at Transfers and Balance at
June 30, 2022 Additions Retirements Adjustments June 30, 2023 Governmental activities
Non-depreciable capital assets:
Land $16,716,300 $16,716,300
Artwork 5,500 $5,500
Construction in progress 11,327,782 $1,163,625 ($401,663) ($11,179,490) 910,254 Total non-depreciable capital assets: 28,049,582 1,163,625 (401,663) (11,179,490) 17,632,054 Capital assets being depreciated:
Land Improvements 6,332,993 1,891,425 8,224,418
Building and Structures 17,537,741 8,651,284 26,189,025 Machinery and Equipment 4,890,687 59,555 153,370 5,103,612 Right-to-use leased property 3,152,216 5,568,501 8,720,717 Infrastructure 31,758,104 31,758,104
Total capital assets, depreciable 63,671,741 5,628,056 10,696,079 79,995,876 Less accumulated depreciation:
Capital assets being depreciated:
Land Improvements (2,648,269) (198,715) (2,846,984)
Building and Structures (6,519,503) (455,431) (6,974,934) Machinery and Equipment (3,560,798) (310,193) (3,870,991) Right-to-use leased property (128,153) (569,505) (697,658) Infrastructure (11,526,552) (551,953) (12,078,505)
Total accumulated depreciation (24,383,275) (2,085,797) (26,469,072) Depreciable capital assets 39,288,466 3,542,259 10,696,079 53,526,804 Governmental activity
capital assets, net $67,338,048 $4,705,884 ($401,663) ($483,411) $71,158,858 UNAUDITED DRAFT - to be destroyed after review
50 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 6 – CAPITAL ASSETS (Continued)
Balance at Balance at
June 30, 2022 Additions Deletions Transfers June 30, 2023 Business-type activities
Capital assets not being depreciated:
Land $647,815 $647,815
Construction in Progress 4,130,445 ($50) ($3,902,008) 228,387 Total non-depreciable capital assets: 4,778,260 (50) (3,902,008) 876,202 Capital assets, being depreciated:
Land Improvements 12,309,095 1,382,631 13,691,726
Building and Structures 9,526,843 2,495,377 12,022,220
Machinery and Equipment 859,161 24,000 883,161
Infrastructure 32,245,204 32,245,204
Total capital assets being depreciated 54,940,303 3,902,008 58,842,311 Less accumulated depreciation for:
Land Improvements (6,706,192) ($75,426) (6,781,618)
Building and Structures (3,190,006) (162,427) (3,352,433) Machinery and Equipment (618,327) (30,370) (648,697)
Infrastructure (16,026,890) (491,431) (16,518,321)
Total accumulated depreciation (26,541,415) (759,654) (27,301,069) Depreciable capital assets 28,398,888 (759,654) 3,902,008 31,541,242 Business-type activity capital assets, net $33,177,148 ($759,654) ($50) $32,417,444 A. Capital Asset Contributions
Some capital assets may be acquired using federal and State grant funds, or they may be contributed by developers or other governments. GASB Statement 34 requires that these contributions be accounted for as revenues at the time the capital assets are contributed.
B. 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
General Government $1,013,491
Public Safety 255,400
Public Works 616,424
Parks and Recreation 200,482
Total Governmental Activities $2,085,797
Business-Type Activities
Water $233,335
Sewer 82,565
Guadalupe Valley Municipal Improvement District 336,272 Marina 107,482
Total Business-Type Activities $759,654
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51 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 7 – LONG-TERM DEBT
The City generally incurs long-term debt to finance projects or purchase assets which will have useful lives equal to or greater than the related debt.
The following is a summary of long-term debt transactions for the year ended June 30, 2023:
Balance at Balance at Current Non-Current
June 30, 2022 Additions Retirements June 30, 2023 Portion Portion Governmental Activities
2013 Pension Side Fund Bank Loan (Direct Borrowing) $382,000 ($382,000) 2014 Lease Revenue Refunding Bonds 3,910,000 (245,000) $3,665,000 $255,000 $3,410,000 Leases payable (see Note 11) 3,024,063 $5,544,819 (158,915) 8,409,967 170,747 8,239,220 2017 Lease Revenue Refunding Bonds (Direct Placement) 991,000 (131,000) 860,000 138,000 722,000 2018 San Mateo County Library Loan (Direct Borrowing) 1,246,667 (113,333) 1,133,334 113,334 1,020,000 2022 Bank of West Loan (Direct Borrowing) 4,355,000 4,355,000 71,000 4,284,000 Energy Conservation Loan (Direct Borrowing) 48,732 (13,751) 34,981 13,888 21,093 Total Governmental Long-Term Debt $13,957,462 $5,544,819 ($1,043,999) $18,458,282 $761,969 $17,696,313 Balance Balance at Current Non-Current
June 30, 2022 Additions Retirements June 30, 2023 Portion Portion Business-type Activities
2015 Utility Revenue Bonds $6,120,000 ($400,000) $5,720,000 $415,000 $5,305,000 2015 Installment Sale Agreement (Direct Placement) 2,220,000 (417,000) 1,803,000 430,000 1,373,000 Total Business-Type Long-Term Debt $8,340,000 ($817,000) $7,523,000 $845,000 $6,678,000 A. 2013 Pension Side Fund Bank Loan (Direct Borrowing)
On June 26, 2013, the City, through the Brisbane Public Financing Authority, entered into a loan agreement with a bank in the amount of $1,611,000. Proceeds in amount of $1,533,433 were wire transferred to CalPERS to pay off the City’s Miscellaneous Pension Side Fund. The remaining proceeds were used for issuance financing costs. Principal and interest payments are due semiannually on June 1 and December 1, with an interest rate of 3.98% per annum.
Repayments made by the City are payable from any revenues lawfully available to the City.
The loan agreement contains events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City. As of June 30, 2023, the City has fully paid off the Loan.
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52 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 7 – LONG-TERM DEBT (Continued)
B. 2014 Lease Revenue Refunding Bonds, Series 2014
On December 1, 2014, the Brisbane/Guadalupe Valley Municipal Improvement District Financing Authority issued $5,470,000 principal amount Lease Revenue Refunding Bonds, Series 2014. The Bonds being issued are to refund the outstanding Brisbane Public Financing Authority Lease Revenue Bonds, Series 2005B (City Hall Renovation and Expansion Project).
Repayments made by the City are payable from any revenues lawfully available to the City.
The City intends to make all payments from proceeds of its transient occupancy tax, but such tax proceeds are not pledged as security for the repayment of the Bonds. The bond covenant contains events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City.
The bonds mature annually through April 1, 2035, in amounts ranging from $108,152 to $379,380. The interest on the bonds is payable semiannually on each April 1 and October 1, with rates ranging from 2.00% to 4.00%. The bonds are subject to optional and mandatory redemption prior to maturity.
The annual debt service requirements on the bonds are as follows:
Year ending
June 30: Principal Interest Total
2024 $255,000 $124,380 $379,380
2025 265,000 114,180 379,180
2026 270,000 106,230 376,230
2027 280,000 98,130 378,130
2028 290,000 89,730 379,730
2029-2033 1,590,000 299,069 1,889,069
2034-2038 715,000 39,150 754,150
Total $3,665,000 $870,869 $4,535,869
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53 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 7 – LONG-TERM DEBT (Continued)
C. 2017 Lease Revenue Refunding Bonds, Series 2017 (Direct Placement) On August 1, 2017, the City issued $1,630,000 in Lease Revenue Refunding Bonds. The proceeds of the bonds were used to refund the 2009 Brisbane Public Financing Authority Lease Revenue Bonds. The refunding was completed to realize net present value savings related to the leases securing the prior bonds. Principal payment will be due each April 1, commencing in April 2018. Interest will be payable semiannually on April and October 1 each year. The bonds mature in 2029 and bear an annual interest percentage rate in the range from 4.5% to 6.0%.
The refunding resulted in an overall debt service savings of $212,054, and the net present value of the debt service savings, called an economic gain, amounted to $164,575.
Repayments made by the City are payable from any revenues lawfully available to the City.
The loan agreement contains events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City.
On August 1, 2017, the City deposited $1,741,405 for the 2009 Brisbane Public Financing Authority Lease Revenue Bonds in an irrevocable trust with an escrow agent to provide funds for the future debt service on the refunded bonds. As a result, the bonds are considered defeased and the liability for those bonds have been removed from the statement of net position.
The annual debt service requirements on the bonds are as follows:
Year ending
June 30: Principal Interest Total
2024 $138,000 $19,006 $157,006
2025 138,000 15,956 153,956
2026 143,000 12,906 155,906
2027 147,000 9,746 156,746
2028 145,000 6,498 151,498
2028-2030 149,000 3,292 152,292
Total $860,000 $67,404 $927,404
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54 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 7 – LONG-TERM DEBT (Continued)
D. 2018 San Mateo County Library Construction Loan (Direct Borrowing) During the fiscal year ended June 30, 2018, the City entered into a loan agreement with the County of San Mateo in the amount of $1.7 million to ensure completion of the Library Project.
The Project currently includes construction and construction management of the new library.
Principal payment will be due each April and December 15, commencing in December 2018.
Interest will be payable semiannually on April and December 15 each year. With an annual interest percentage rate of 1.2%. Final payment shall be made no later than April 15, 2033.
Repayments made by the City are payable from secured property tax revenues lawfully available to the City. In the event that there are insufficient property tax revenues due to the City on any given payment due date, the County shall take from any other available tax apportionments otherwise due to the City to fulfill the balance of the payment. In the event the Library changes use or the construction of the Library is delayed, the County has the option to require that the City immediately repay to the County all funds disbursed to the City pursuant to the loan agreement, including interest accrued at 1.2% annually.
The annual payment requirements on the loan are as follows:
Year ending
June 30: Principal Interest Total
2024 $113,334 $16,095 $129,429
2025 113,333 14,735 128,068
2026 113,334 13,399 126,733
2027 113,334 11,992 125,326
2028 113,334 10,654 123,988
2029-2033 566,665 19,260 585,925
Total $1,133,334 $86,135 $1,219,469
E. 2022 Bank of the West Loan (Direct Borrowing)
During the fiscal year ended June 30, 2022, the Brisbane/ Guadalupe Valley Municipal Improvement District Financing Authority and the City of Brisbane entered into a lease agreement with the Bank of the West in the amount of $4.355 million to finance the costs associated with acquisition of the building and land of the former Bank of America branch located at 70 Old County Road in Brisbane.
On March 1, 2022, the City & Brisbane/ Guadalupe Valley Municipal Improvement District Financing Authority entered into Lease Agreement with the Bank of the West (Bank), under which the Bank funded $4,355,000 to the Brisbane/Guadalupe Valley Municipal Improvement District Financing Authority (Authority), which amount will be paid by the Authority to the City and, in consideration therefor, the City has agreed to cause the Authority to assign its rights, title and interest under the Site and Facility Lease, dated as of March 1, 2022, by and between the City and the Authority (the "Site and Facility Lease"), and the Lease Agreement, dated as of March 1, 2022 (the "Lease Agreement"), by and between the City and the Authority, including its rights to receive lease payments to be made by the City to the Bank under the Lease Agreement.
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55 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 7 – LONG-TERM DEBT (Continued)
The City will make the annual lease payments over a lease term of 20 years, at a fixed interest rate of 3.25% per year. The lease is secured by the leased located at 70 Old County Road. The lease is repayable in semi-annual payments beginning September 1, 2023 through March 1, 2042.
The pledge of repayment is from the City’s General Fund.
The annual payment requirements on the loan are as follows:
Year ending
June 30: Principal Interest Total
2024 $71,000 $141,341 $212,341
2025 $76,000 139,617 215,617
2026 77,000 136,131 213,131
2027 78,000 133,628 211,628
2028 86,000 131,386 217,386
2029-2033 1,113,000 607,955 1,720,955
2034-2038 1,483,000 405,772 1,888,772
2039-2042 1,371,000 153,553 1,524,553
Total $4,355,000 $1,849,383 $6,204,383
F. Energy Conservation Loan (Direct Borrowing)
On October 8, 2010, the City received a loan from the California Energy Resources Conservation and Development Commission for project costs associated with the installation of LED street lighting. Principal and interest payments are due semiannually on June 22 and December 22, with an interest rate of 1%.
The annual payment requirements on the loan are as follows:
Year ending
June 30: Principal Interest Total
2024 $13,888 $316 $14,204
2025 14,029 176 14,205
2026 7,064 35 7,099
Total $34,981 $527 $35,508
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56 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 7 – LONG-TERM DEBT (Continued)
G. 2015 Utility Revenue Bonds
On June 3, 2015, the Brisbane Guadalupe Valley Municipal Improvement District Financing Authority and the City issued utility revenue bonds of $8,310,000 which repaid in full the outstanding principal of the 2012 Brisbane Installment Sale Agreement. The interest on the 2015 bonds is payable semiannually on each March 1 and September 1, with interest rate of
3.11% per annum. Principal payments are due annually on September 1 from September 1, 2015 to September 1, 2035.
The bond covenant contains events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City.
The bonds repayments are payable and secured by a pledge of the net revenues of the Utility Enterprise Fund as defined under the bond indenture, which must be equal to at least 125% of the current annual debt service requirements. In accordance with the revenue bond covenant, if pledged revenues during the year are less than 125% of maximum annual debt service coverage due at the end of the fiscal year, the outstanding amounts of the bonds could become immediately due. Total debt service paid in the current year was $628,025 and Utility Enterprise Fund net revenue was ($463,809). The City increased the sewer and water rates to increase the revenue in FY2023.
The annual payment requirements on the loan are as follows:
Year ending
June 30: Principal Interest Total
2024 $415,000 $203,025 $618,025
2025 440,000 181,650 621,650
2026 455,000 159,275 614,275
2027 480,000 140,700 620,700
2028 490,000 126,150 616,150
2029-2033 2,450,000 378,870 2,828,870
2034-2036 990,000 55,618 1,045,618
Total $5,720,000 $1,245,288 $6,965,288
H. 2015 Installment Sale Agreement (Direct Placement)
On June 5, 2015, the Brisbane Guadalupe Valley Municipal Improvement District Financing Authority and the City entered into an installment sale agreement in the amount of $4,174,000 which paid for the dredging of the Marina. The interest on the agreement is payable semiannually on each May 1 and November 1, with interest rate of 3.12% per annum.
Principal payments are due semiannually on May 1 and November 1 from November 1, 2016 to May 1, 2027.
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57 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 7 – LONG-TERM DEBT (Continued)
The agreement contains events of default that require the revenue of the City to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur:
default on debt service payments; the failure of the City to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the City; or if any court or competent jurisdiction shall assume custody or control of the City.
The repayments are payable and secured by a pledge of the net revenues of the Marina Enterprise Fund as defined under the agreement, which must be equal to at least 125% of the current annual debt service requirements. In accordance with the agreement, if pledged revenues during the year are less than 125% of maximum annual debt service coverage due at the end of the fiscal year, the outstanding amounts of the bonds become immediately due.
Total debt service paid in the current year was $483,035 and Marina Enterprise Fund net operating income was $886,448.
The annual payment requirements on the installment sale agreement are as follows:
Year ending
June 30: Principal Interest Total
2024 $430,000 $52,931 $482,931
2025 443,000 39,406 482,406
2026 458,000 25,475 483,475
2027 472,000 11,076 483,076
Total $1,803,000 $128,888 $1,931,888
NOTE 8 – NET POSITION AND FUND BALANCES
A. Net Position
Net Position is the excess of all the City’s assets and deferred outflows over all its liabilities, and deferred inflows regardless of fund. Net Position are divided into three captions and are applied only to Net Position, which is determined only at the Government-wide and proprietary funds 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. These principally include developer fees received for use on capital projects, debt service requirements, and redevelopment funds restricted to low and moderate-income purposes.
Unrestricted describes the portion of Net Position which is not restricted to use.
When an expense is incurred for purposes for which both restricted and unrestricted net positions are available, the City’s policy is to apply restricted net positions first.
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58 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 8 – NET POSITION AND FUND BALANCES (Continued)
B. Fund Balance
The City’s fund balances are classified 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 that do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, and assets not expected to be converted to cash, such as prepaids, notes receivable, and advances to other funds 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. Encumbrances and nonspendable amounts subject to restrictions are included along with spendable resources.
Committed fund balances have constraints imposed by formal action of the City Council which may be altered only by formal action of the City Council. Encumbrances and nonspendable amounts subject to council commitments are included along with spendable resources.
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. This category includes encumbrances; 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.
C. PARS Trust for Pension Program
The City established an irrevocable trust with Public Agency Retirements Services (PARS) to set aside funds for pension liability.
At June 30, 2023, the cash and investment balance in the trust was $1,384,156. The City Council reserves the authority to review and amend this funding policy from time to time, in order to ensure the funding policy continues to best suit the circumstances of the City.
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59 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 8 – NET POSITION AND FUND BALANCES (Continued)
Detailed classifications of the City’s fund balances, as of June 30, 2023, are below:
Low/Mod
Income Housing
Asset Non-Major Total
Special Capital Governmental Governmental
Fund Balance Classifications General Fund Revenue Fund Projects Fund Funds Funds Nonspendables:
Loans receivable $443,750 $443,750
Prepaids 4,136 4,136
Advances to other funds 3,136,320 3,136,320
Total Nonspendable Fund Balances 3,584,206 3,584,206
Restricted for:
PARS pension trust 1,384,156 1,384,156
Low and moderate income
housing projects $4,475,760 4,475,760
Debt service $1,074,643 1,074,643
ARPA funded public services 1,063,217 1,063,217
Transportation and street
improvements 1,119,394 1,119,394
Grant activities 63,041 63,041
Special revenue activities 3,902,663 3,902,663
Total Restricted Fund Balances 1,384,156 4,475,760 7,222,958 13,082,874 Assigned to:
Capital projects 5,153,718 5,153,718
Encumbrances 620,798 620,798
Fire sinking fund 220,868 220,868
Total Assigned Fund Balances 841,666 5,153,718 5,995,384 Unassigned 9,825,030 ($6,838,446) (125,705) 2,860,879
Total Fund Balances $15,635,058 $4,475,760 ($6,838,446) $12,250,971 $25,523,343 D. Minimum Fund Balance Policies
The City is required to maintain a General Fund reserve balance that responds to the following criteria:
1. Emergency or disaster circumstances, which is reviewed every three years and modified as appropriate. For fiscal year 2023, the amount, at minimum, is $_________.
2. Recession circumstances, such as revenue reductions caused by an economic downturn comparable to the Great Recession of 2008/2009. If the amount is drawn down by recessionary shortfalls in the budget, a plan will need to be established to replenish the balance as the economy recovers. For fiscal year 2023, the amount, at minimum, is $_________.
3. Annual fluctuation circumstances, estimated to compensate for unexpected fluctuations of 5% in expenditures beyond the budget and 5% in revenues below the budget. The amount will be recalculated every year as the budget changes. For fiscal year 2023, the minimum amount is approximately $_________.
UNAUDITED DRAFT - to be destroyed after review
60 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 8 – NET POSITION AND FUND BALANCES (Continued)
For fiscal year 2023, the total amount to be set aside for emergency or disaster circumstances, recession circumstances and annual fluctuation circumstances is set at $_________. As of June 30, 2023, the actual total amount of fund balance of the General Fund was $15,635,058, with an unassigned fund balance of $9,825,030.
The City is required to maintain fund or working capital balances of at least 20% of operating expenditures in the Utility and Marina Enterprise Funds. This is considered the minimum level necessary to maintain the City’s credit worthiness and to adequately provide for:
a. Economic uncertainties, local disasters, and other financial hardships, or downturns in the local or national economy.
b. Contingencies for unseen operating or capital needs. c. Cash flow requirements.
At June 30, 2023, the Utility Enterprise Fund’s required work capital balance is $1,485,071.
The fund’s actual unrestricted net position at June 30, 2023 was $1,964,244. At June 30, 2023, the Marina Enterprise Fund’s required work capital balance is $329,273. The fund’s actual unrestricted net position at June 30, 2023 was $1,671,404.
For General Fund assets, the City is required to establish and maintain an Equipment Replacement Fund to provide for the timely replacement of vehicles and capital equipment with an individual replacement cost of $15,000 or more. The City is also required to maintain a minimum fund balance in the Equipment Replacement Fund of at least 20% of the original purchase cost of the items accounted for in this fund. The annual contribution to this fund will generally be based on the annual use allowance, which is determined based on the estimated life of the vehicle or equipment and it’s cost of replacement. Interest earnings and sales of surplus equipment as well as any related damage or insurance recoveries will be credited to the Equipment Replacement fund.
The Council may designate specific fund balance levels for future development of capital projects, which it has determined to be in the best long-term interests of the City. In addition to the designations noted above, fund balance levels will be sufficient to meet funding requirements for projects approved in prior years which are carried forward into the new year; debt service reserve requirements, reserves for encumbrances; and other reserves or designations required by contractual obligations, state law, or generally accepted accounting principles.
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61 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 8 – NET POSITION AND FUND BALANCES (Continued)
E. Deficit Fund Balances/Net Position
The following funds had deficit fund balances, which will be eliminated through the reduction in expenditures and/or the use of new funding sources:
Deficit Fund
Balances/
Funds Net Position
Major Governmental Fund:
Capital Projects Fund ($6,838,446)
Non-Major Governmental Funds:
NPDES Special Revenue Fund (12,798)
2006 Pension Obligation Bonds Debt Service Fund (7,788) 2013 Pension Side Fund Bonds Debt Service Fund (1,010)
Brisbane- Guadalupe Valley Municipal Improvement District Public Financing Authority Debt Service Fund (3,101)
2022 Brisbane- Guadalupe Valley Municipal Improvement District Public Financing Authority Debt Service Fund (101,008)
Internal Service Funds:
Dental Self-Insurance (99,966)
Flexible Benefits (1,671)
General Liability (776,385)
Workers' Compensation (1,551,559)
NOTE 9 – PENSION PLANS
A. General Information about the Pension Plan
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 Plan 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 currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
Plans Description – All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (police and fire) and Miscellaneous (all other) Employee Pension Rate Plans. The City’s Miscellaneous and Safety Rate Plans are part of the public agency cost-sharing multiple-employer defined benefit pension plan (PERF C), which is administered by the California Public Employees’ Retirement System (CalPERS). PERF C consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively. Individual employers may sponsor more than one miscellaneous and safety rate plan. The employer participates in one cost-sharing multiple-employer defined benefit pension plan regardless of the number of rate plans the employer sponsors. The City sponsors six rate plans (three miscellaneous and three safety). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
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62 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 9 – PENSION PLANS (Continued)
Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Plan’s provisions and benefits in effect at June 30, 2023, are summarized as follows:
Miscellaneous
Hire date Prior to July 1, 2008
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2.0% @ 60 2.0% @ 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 50-67+ 50 - 67+ 52 - 67+
Monthly benefits, as a % of eligible compensation 2.0% - 2.7% 1.092%-2.418% 1.0%-2.5% Required employee contribution rates 8.0% 7.0% 6.75%
Required employer contribution rates 14.03% 9.12% 7.47% Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
(Fire)
On or after
January 1, 2013
(Police)
Benefit formula 3% @ 55 2.7% @ 57 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 - 55+ 50 - 57+ 50 - 57+
Monthly benefits, as a % of eligible compensation 2.4%-3.0% 2.0%-2.7% 2.0%-2.7% Required employee contribution rates 9.0% 13.0% 13.0%
Required employer contribution rates 21.84% 12.78% 12.78% Safety
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 and side fund. The dollar amounts are billed on a monthly basis. The City’s required contribution for the unfunded liability and side fund was $2,121,510 in fiscal year 2023.
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 the Plan 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.
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63 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 9 – PENSION PLANS (Continued)
For the year ended June 30, 2023, the contributions to the Plan were as follows:
Miscellaneous
Contributions - employer $1,792,450
Safety
Contributions - employer $1,734,220
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2023, the City reported the following balances:
Deferred outflows Net Pension Deferred inflows
of resources Liability (Asset) of resources
Miscellaneous $10,045,227 $14,851,196 $2,108,857
Safety 8,572,055 14,488,529 5,711,891
PARS 96,213 29,818
Total $18,713,495 $29,369,543 $7,820,748
The City’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2022, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined.
The City’s proportionate share of the net pension liability for the Plan as of June 30, 2021 and 2022 was as follows:
Miscellaneous
Proportion - June 30, 2021 0.21971%
Proportion - June 30, 2022 0.31739%
Change - Increase (Decrease) 0.09768%
Safety
Proportion - June 30, 2021 0.34669%
Proportion - June 30, 2022 0.21085%
Change - Increase (Decrease) -0.13584%
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64 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 9 – PENSION PLANS (Continued)
For the year ended June 30, 2023, the City recognized pension expense of $2,757,766. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows Deferred Outflows Deferred Inflows of Resources of Resources of Resources of Resources
Pension contributions subsequent to measurement date $1,734,220 $1,792,450 Differences between actual and expected experience 614,637 ($161,272) 290,958 ($194,871) Changes in assumptions 1,497,450 1,484,653
Net differences between actual and proportional
contribution (1,505,946) 95,823 (239,373)
Net differences between projected and actual earnings
on plan investments 2,345,211 2,653,914
Adjustment due to differences in proportion 2,380,537 (4,044,673) 3,727,429 (1,674,613) Total $8,572,055 ($5,711,891) $10,045,227 ($2,108,857)
(Continued)
Safety Plan Miscellaneous Plan
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $3,526,670 Differences between actual and expected experience 905,595 ($356,143) Changes in assumptions 2,982,103
Net differences between actual and proportional
contribution 95,823 (1,745,319)
Net differences between projected and actual earnings
on plan investments 4,999,125
Adjustment due to differences in proportion 6,107,966 (5,719,286) Total $18,617,282 ($7,820,748)
Total
$3,526,670 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ended Annual
June 30 Amortization
2024 $390,053
2025 (3,393)
2026 (691,325)
2027 1,430,609
Total $1,125,944
Safety Plan
Year Ended Annual
June 30 Amortization
2024 $1,499,577
2025 1,586,096
2026 1,435,022
2027 1,623,225
Total $6,143,920
Miscellaneous Plan
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65 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 9 – PENSION PLANS (Continued)
Actuarial Assumptions – For the measurement period ended June 30, 2022, the total pension liability was determined by rolling forward the June 30, 2021 total pension liability. The June 30, 2022 total pension liability was based on the following actuarial methods and assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:
Discount Rate
Inflation
Salary Increases
Investment Rate of Return
Mortality Rate Table
Post retirement Benefit Increase
June 30, 2021
June 30, 2022
Entry-Age Normal Cost Method
All CalPERS Plans
6.90%
2.30%
(1)
7.15% (2)
(1) Varies by Entry age and service
(2) Net of Pension plan investment expenses, including inflation. (3) The mortality table used was developed based on CalPERS’ specific data. The table includes generational mortality improvements using Society of Actuaries Scale 80% of scale MP 2020. For more details on this table, please refer to the November 2021 experience study report (based on CalPERS demographic data from 2001 to 2019) that can be found on the CalPERS website.
Derived using CalPers Membership Data for all Funds (3) The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.30% thereafter Discount Rate – The discount rate used to measure the total pension liability was 6.90% for the Plan. The projection of cash flows used to determine the discount rate for the 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, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both shortterm and long-term market return expectations. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses of 10 basis points.
UNAUDITED DRAFT - to be destroyed after review
66 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 9 – PENSION PLANS (Continued)
The expected real rate of return by asset class are as follows:
Asset Class (a)
Assumed
Asset
Allocation Real return (1,2)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yields 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100%
(1) An expected inflation of 2.30% used for this period (2) Figures are based on the 2021 Asset Liability Management study Changes of Assumptions – Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability $22,192,404 $21,628,664
Current Discount Rate 6.90% 6.90%
Net Pension Liability $14,851,196 $14,488,529
1% Increase 7.90% 7.90%
Net Pension Liability $8,851,416 $8,613,970
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67 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 9 – PENSION PLANS (Continued)
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.
C. Public Agency Retirement System Retirement Enhancement Plan Plans Description – The City established a Public Agency Retirement System Retirement Enhancement Plan (PARS), Agent multiple-employer plan, effective October 2005 for an executive employee of the City. PARS is a defined benefit 401(a) tax-qualified multiple agency trust. It meets the requirements of a pension trust under California Government code.
The plan provides supplemental retirement benefits in addition to PERS. Phase II Systems is the PARS Trust Administrator. PARS issues a separate annual comprehensive financial report.
Copies of PARS annual financial report may be obtained from the PARS Executive Office, 3961 MacArthur Boulevard, Suite 200, Newport Beach, CA 92660.
Benefits Provided – The PARS Plan provides a 1% enhancement to the current CalPERS benefit formula. Benefit service includes all full-time continuous service with the City from date of hire. The participant is eligible to receive the benefit at age 63 after 10 years of fulltime continuous service and concurrent termination of employment from the City and retirement under CalPERS.
At June 30, 2023, the PARS Plan had one active employee covered by the benefit.
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 the PARS Plan are determined annually on an actuarial basis as of June 30. 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 the employee.
For the year ended June 30, 2023, the contributions to the PARS Plan were as follows:
PARS
Contributions - employer $38,838
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68 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 9 – PENSION PLANS (Continued)
Discount Rate – The discount rate used to measure the total pension liability for the PARS Plan was 6.50%. The pension trust is projected to have sufficient assets to pay benefits per the Plan’s current contribution policy.
PARS
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 6.50%
Inflation 2.50%
Payroll Growth 0.0%
Projected Salary Increase 0.0%
Investment Rate of Return 6.50%
Mortality Rate Table Pre-retirement: Consistent with the Non-Industrial rates used to value the Miscellaneous Public Agency
CalPERS Pension Plans.
Post-retirement: CalPERS 1997-2011 Healthy Retiree
Tables (sex-distinct) with an assumed base year of 2008 and full generational projections using Scale AA.
Discount Rate – 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 the PARS Plan are determined annually on an actuarial basis as of June 30. 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 the employee.
The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.
Asset Class
Target
Allocation
Long-Term
Expected
Arithmetic
Real Rate of
Return
US Cash 3.88% 51.00%
US Core Fixed Income 47.94% 2.07%
US Equity Market 36.80% 5.56%
Foreign Developed Equity 6.05% 6.89%
Emerging Markets Equity 3.73% 9.58%
US REITs 1.60% 6.96%
Total 100%
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69 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 9 – PENSION PLANS (Continued)
Pension Liabilities, Pensions Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions – The City’s net pension liability (asset) is measured as the total pension liability less the pension plan’s fiduciary net position. The net pension liability (asset) of the PARS Plan is measured as of June 30, 2022, and the total pension liability for the PARS Plan used to calculate the net pension liability (asset) was determined by an actuarial valuation as of June 30, 2021.
The following table shows the net pension liability (asset) for the PARS Plan and the respective changes in the net pension liability (asset) recognized over the measurement period.
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability/(Asset)
Balance at June 30, 2022 $760,573 $710,754 $49,819
Changes for the year:
Service cost 16,841 16,841
Interest on the total pension liability 50,532 50,532
Effect of economic/demographic gains or losses -
Effect of assumption changes or inputs -
Employer contributions 38,838 (38,838)
Net investment income 52,283 (52,283)
Administrative expenses (3,747) 3,747
Net changes during 2022-2023 67,373 87,374 (20,001)
Balance at June 30, 2023 $827,946 $798,128 $29,818
For the year ended June 30, 2023, the City recognized pension expense of $39,307 for the PARS Plan. At June 30, 2023, the City reported deferred outflows of resources related to pension contributions subsequent to measurement date of $38,838 which will be recognized as a reduction of the net pension liability in the year ended June 30, 2024, and pension contributions subsequent to pensions from the net differences between projected and actual earnings on plan investments of the Miscellaneous PARS plan in the amount of $57,375.
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Miscellaneous
PARS
Year Ended Annual
June 30 Amortization
2023 $15,489
2024 11,678
2025 31,201
2026 (993)
Total $57,375
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70 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 9 – PENSION PLANS (Continued)
Sensitivity of the Net Pension Liability (Asset) to Changes in the Discount Rate – The following presents the net pension liability (asset) of the PARS Plan as of the measurement date, calculate using the discount rate of 6.50%, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1 percentage-point lower (5.50%) or 1 percentage-point higher (7.50%) than the current rate:
Miscellaneous - PARS
1% Decrease 5.50%
Net Pension Liability (Asset) $98,074
Current Discount Rate 6.50%
Net Pension Liability (Asset) $29,818
1% Increase 7.50%
Net Pension Liability (Asset) ($29,379)
NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (OPEB)
A. Plan Description and Funding Policy
The City administers a single-employer defined benefit post-employment healthcare plan.
Employees hired prior to July 1, 2008, have the stipulated years of service, and retire directly from the City, are eligible to receive up to the Kaiser rate (family or single, depending on MOU) and the Medicare eligible rate after reaching the age of 65. This same benefit may continue to a surviving spouse depending on the retirement plan election. Currently there are 65 retirees receiving post-employment health care benefits from the City.
As of June 30, 2023, approximately 78 participants were eligible to receive benefits.
Exec Mgmt, HR Admin,
Conf Mgmt, Police Chief
Conf, Mid-Mgmt,
Police Commanders
General,
Firefighters, Police
Officers
Eligibility Hired < 7/1/08 and Retire Directly from the City • 10 years of Municipal
Government Service
• 15 years of Municipal
Government service
• 15 years of City
service
Cash Stipend • Up to Kaiser family
• Medicare eligible rate ≥ 65
• Up to Kaiser family
• Medicare eligible rate
≥ 65
• Up to Kaiser single
• Medicare eligible
rate ≥ 65
PEMHCA
minimum
• Retirees not eligible for Cash Stipend
• Includes hourly employees and City Council
Year Monthly Amount
2018 $133
2019 136
2020 139
Surviving
Spouse Benefit
• Retirement plan election
• PEMHCA minimum benefit continues to surviving spouses • No Cash Stipend for surviving spouses
Dental, Vision
& Life
• None
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71 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) (Continued) B. Employees Covered by Benefit Terms
At June 30, 2023, the benefit terms covered the following employees:
Number of
Covered Employees
Retirees and beneficiaries receiving benefits 65
Active employees 78
143
C. Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2021, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2022.
D. Actuarial Assumptions
The total OPEB liability in the June 30, 2022 actuarial valuation was determined using the following actuarial assumptions, applied to all periods in the measurement, unless otherwise specified:
Measurement Date June 30, 2022
Funding Policy Annual actuarial determined contributions.
Salary Increases Aggregate salary increases, 2.80%. Individual salary increased based on CalPERS
Healthcare Cost Trend Rate Pre-Medicare 7.0%, Medicare 6.0% Trending down to 4.04% over 56 years.
Inflation 2.30%
Actuarial Assumptions:
Discount Rate 5.45%
Investment Rate of Return 5.45%
Mortality Based on CalPERS tables
The discount rate used to measure the total OPEB liability was 5.45%. The projection of cash flows used to determine the discount rate assumed that the City contribution will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to cover all future OPEB payments.
Therefore, the discount rate was set equal to the long-term expected rate of return.
UNAUDITED DRAFT - to be destroyed after review
72 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) (Continued) E. Changes in the Net OPEB Liability
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
$8,065,939 $4,039,073 $4,026,866
(Measurement Date 6/30/22)
Changes Recognized for the Measurement Period:
Service cost 259,497 259,497
Interest 435,962 435,962
Effect of liability gains or losses
Changes of assumptions 158,569 158,569
Investment gains or losses on expected return
contributions 47,929 47,929
Contributions:
Employer - City's contribution 355,455 (355,455)
Employer - Implicit subsidy 118,682 (118,682)
Net investment income (517,416) 517,416
Benefit payments (355,455) (355,455)
Implicit rate subsidy fulfilled (118,682) (118,682)
Administrative expenses (23,379) 23,379
Net Changes during Fiscal Year 2023 427,820 (540,795) 968,615 $8,493,759 $3,498,278 $4,995,481
Increase (Decrease)
Balance at Fiscal Year Ending 6/30/2022:
Balance at Fiscal Year Ending 6/30/2023:
F. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate 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 one percentage point lower (4.45%) or one percentage point higher (6.45%), as follows:
1% Decrease Current 1% Increase
4.45% 5.45% 6.45%
Net OPEB Liability $6,011,362 $4,995,481 $4,144,376
Discount Rate
G. Sensitivity of the Net OPEB Liability to Changes in the 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 healthcare cost trend rates that are one percentage point lower (6.50%) or one percentage point higher (7.50%) than current healthcare cost trend rates, as follows:
1% Decrease Current 1% Increase
5.50% 6.50% 7.50%
to 3.04% to 4.04% to 5.04%
Net OPEB Liability $3,931,202 $4,995,481 $6,294,866
Trend Rate
UNAUDITED DRAFT - to be destroyed after review
73 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) (Continued) H. OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB For the fiscal year ended June 30, 2023, the City recognized OPEB expense of $177,945. At June 30, 2023, the City reported deferred outflows of resources and deferred 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 $113,133
Differences between actual and expected experience 573,534 ($1,308,515) Net difference between projected and actual earnings
on OPEB plan investments 307,673
Changes of assumptions 501,800 (494,905)
Total $1,496,140 ($1,803,420)
A total of $113,133 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2023. Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Year Annual
Ended June 30 Amortization
2024 ($326,644)
2025 41,457
2026 (24,411)
2027 (950)
2028 (134,155)
Thereafter 24,290
Total ($420,413)
NOTE 11 – LEASES
A. Policies
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. The City recognizes lease receivable or liabilities with an aggregate, individual value of $500,000 or more for Governmental Funds and $300,000 for Enterprise and all other funds, based on the future lease payments remaining at the start of the lease.
UNAUDITED DRAFT - to be destroyed after review
74 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 11 – LEASES (Continued)
Lessor
The City is a lessor for noncancellable leases of buildings and facilities. The City recognizes a lease receivable and a deferred inflow of resources in the government‐wide and fund financial statements.
At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.
Key estimates and judgments include how the City determines (1) the discount rate it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts as follows:
• The City uses bond interest rate as the discount rate for leases. • The lease term includes the noncancellable period of the lease. • Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee.
The City monitors changes in circumstances that would require a remeasurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable.
The City has no applicable leases over the threshold for GASB 87 implementation for the fiscal year 2023.
Lessee
The City is a lessee for the buildings located on 25 Park Place, Brisbane. City recognizes a lease liability and an intangible right‐to‐use lease asset in the government‐wide financial statements.
In fiscal year 2022, the City recorded lease liabilities with an initial value of $3,152,216. In fiscal year 2023, the City amended the lease contract increasing the value of the lease asset to $11,109,924.
At the commencement of a lease, City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight‐line basis over its useful life.
UNAUDITED DRAFT - to be destroyed after review
75 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 11 – LEASES (Continued)
Key estimates and judgments related to leases include how City determines (1) the discount rate it uses to discount the expected lease payments to present value, (2) lease term, and (3) lease payments as follows:
• The City uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the lessor is not provided, City generally uses bond interest rate as the discount rate for leases.
• The lease term includes the noncancellable period of the lease. • Lease payments included in the measurement of the lease liability are composed of fixed payments and purchase option price that City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that are expected to significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with longterm debt on the Statement of Net Position.
Leases payable is summarized in Note 7 and Right-to-use Leased Equipment in Note 6.
B. Leases Payable (City as Lessee)
The terms and balances related to leases as of June 30, 2023 were:
Lessor
Property
Address
Original
Lease
Date
Lease
Ending Date
Term
Duration
(Years)
Remaining
Lease
Term
(Years)
Extension
Years
Orsini Court 25 Park Place 1/1/2022 12/31/2046 25 24 -
(Continued below)
Lessor
Expiration
Date
Including
Options
Interest
Exp
Principal
Expenditures
Monthly
Payment Lease Asset
Lease
Liability
Orsini Court 12/31/2046 $ 145,585 $158,915 various $ 8,023,059 $8,409,967 UNAUDITED DRAFT - to be destroyed after review
76 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 11 – LEASES (Continued)
The future principal and interest for lease as of June 30, were as follows:
For the Year
Ended June 30 Principal Interest Total
2024 $170,747 $142,885 $313,632
2025 183,056 139,984 323,040
2026 195,862 136,874 332,736
2027 209,173 133,547 342,720
2028 223,005 129,993 352,998
2029 - 2033 1,365,722 586,756 1,952,478
2034 - 2038 1,780,035 457,761 2,237,796
2039-2043 2,304,857 289,369 2,594,226
2044-2049 1,977,510 78,288 2,055,798
Totals $8,409,967 $2,095,457 $10,505,424
NOTE 12 – RISK MANAGEMENT
The City is exposed to various risks of losses related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; natural disasters and employee health insurance claims. The City participates in the following public entity risk pools.
A. General Liability Insurance
The City is a member of Bay Cities Joint Powers Insurance Authority (BCJPIA). The BCJPIA is a public agency created in 1986 by and among various municipalities in Northern California to provide a pooled approach to liability insurance pursuant to the California Government Code. The BCJPIA is governed by a Board of Directors which is comprised of appointed officials from the member entities. The purpose of the pool is to provide certain levels of liability coverage, claims administration, and loss control support to member agencies.
Annually, each member pays an actuarially determined premium based on a formula which takes into account the prior three years’ loss experience, annual payroll, and population.
The City self-insures the first $25,000 of each liability loss. The BCJPIA pools the layer from $25,001 and purchases excess insurance from $1,000,000 per year.
B. Workers’ Compensation
On July 1, 2000, the City became a member of Workers’ Compensation from Local Agency Workers’ Compensation Excess Joint Powers Authority (LAWCX). The City is self-insured for the first $150,000 of a claim. The LAWCX covers claims from $150,001 to $1,000,000 and purchases excess insurance from $1,000,000 up to statutory limit. Prior to July 1, 2000 the City was a member of the San Mateo County Cities Group (Cities Group). When the City left the Cities Group it took on the responsibility for all current and future claims which would have been covered by the Cities Group.
UNAUDITED DRAFT - to be destroyed after review
77 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 12 – RISK MANAGEMENT (Continued)
The LAWCX is a public agency created in 1992 by and among self-insured workers’ compensation joint power authorities, individual public entities, and special districts throughout California to provide a pooled approach to excess workers’ compensation insurance pursuant to the California Government Code. The LAWCX is governed by a Board of Directors which is comprised of appointed officials from its member entities. The purpose of the pool is to provide excess workers’ compensation insurance to its member agencies.
Annually each member pays an actuarially determined premium based on a formula approved by the Board of Directors.
C. Long-Term Disability and Other Benefit Insurance
Other coverage provided to the City’s workers, such as long-term disability, and unemployment insurance are covered by purchased insurance.
As of June 30, 2023, the estimated claims payable for general liability and workers’ compensation included claims incurred but not reported (IBNR). There were no reductions in insurance coverage from the prior year and no insurance settlement exceeded coverage in each of the past three years.
Beginning balance of claims payable $1,093,267
Changes to estimated claims liability 1,384,865
Claims paid (801,171)
Ending balance of claims payable $1,676,961
Current Portion $555,188
NOTE 13 – COMMITMENTS AND CONTINGENT LIABILITIES
A. Lawsuits
The City is a defendant in a number of lawsuits which have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty. In the opinion of the City Attorney, these actions, when finally adjudicated, will not have a material adverse effect on the financial condition of the City.
B. Federal and State Grant Programs
The City participates in a number of Federal, State and County programs that are fully or partially funded by grants received from other governmental units. Expenditures financed by grants are subject to audit by the appropriate grantor government. If expenditures are disallowed due to noncompliance with grantor program regulations, the City may be required to reimburse the grantor government.
UNAUDITED DRAFT - to be destroyed after review
78 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 13 – COMMITMENTS AND CONTINGENT LIABILITIES (Continued) C. Encumbrances
The City uses an encumbrance system as an extension of normal budgetary accounting for governmental funds. Under this system, purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of applicable appropriations. Encumbrances outstanding at year-end are recorded as restricted, committed or assigned fund balance, depending on the classification of the resources to be used to liquidate the encumbrance, since they do not constitute expenditures or liabilities.
Outstanding encumbrances at year-end are automatically reappropriated for the following year. Unencumbered and unexpended appropriations lapse at year-end. Encumbrances outstanding as of June 30, 2023 were as listed below:
Amount
General Fund
Capital Projects Fund
NPDES Special Revenue Fund
Grant Special Revenue Fund
D. Bay Area Water Supply and Conservation Agency Revenue Bonds Surcharge The City contracts with the City and County of San Francisco for the purchase of water from the Hetch Hetchy System operated by the San Francisco Public Utilities Commission (SFPUC). The City is also a member of the Bay Area Water Supply and Conservation Agency (BAWSCA) which represents the interests of all the 24 cities and water districts, as well as two private utilities, that purchase wholesale water from the SFPUC.
In 2009 the City entered into a new 25 year agreement with the SFPUC that includes a minimum water delivery level of 0.98 MGD. One of the ways that the new agreement differs from the old is in how facilities constructed by the SFPUC that benefit the regional customers are treated from a rate and financial perspective. Under the old agreement, facilities were built, capitalized, and added to the rate base with a rate of return (interest), and then paid for over their useful lives through wholesale rates. Under the new agreement, the SFPUC issues revenue bonds and the debt service (which also includes an interest component) is paid for through rates over the life of the bonds.
During the transition from the old to the new contracts, one of the issues addressed was how to deal with the $370 million in assets that were still being paid for by the wholesale customers under the old agreement. The assets were transferred to the new agreement, assigned a life with an agreed upon rate of return of 5.13%. Also negotiated was a provision to allow the wholesale customers to prepay any remaining existing assets’ unpaid principal balance without penalty or premium. This prepayment was executed through the issuance of bonds by BAWSCA which provide a better interest rate given the favorable rate environment.
UNAUDITED DRAFT - to be destroyed after review
79 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 13 – COMMITMENTS AND CONTINGENT LIABILITIES (Continued) BAWSCA issued Revenue Bonds in the principal amount of $335,780,000 in January 2013 to prepay the capital cost recovery payment obligation and fund a stabilization fund. The Bonds mature in October 2034 and are secured by surcharges to the monthly water purchase charges imposed upon the participating members. The Bonds are not a debt obligation of any member, and BAWSCA’s failure to pay its Bonds would not constitute a default by any participating member.
Should any participating member fail to pay its share, BAWSCA will rely on the stabilization fund and will pursue all legal remedies to collect the shortfall from the delinquent member. In the interim, other participating members may have their portion adjusted to insure the continued payment of the debt service surcharge.
The risk of bearing the debt service expense of a defaulting member is not significantly different than the risk each member assumes currently for fluctuations in water purchase charges. Under the Bond indenture, BAWSCA maintains a stabilization fund. If surcharge revenues collected are less than needed (due to a member’s failure to pay timely), BAWSCA uses the stabilization fund to fund the debt service deficiency, and increases the surcharge in the subsequent year to make up for the prior year shortfall and reimburse the stabilization fund account. Also, given that each participating agency’s governing body adopted a Resolution to participate in the Bond issue, Management believes that default is generally very unlikely.
The annual debt service surcharges are a fixed amount for each participant and are calculated by taking the subsequent fiscal year’s debt service, multiplied by each participant’s actual water purchase as a percent of total wholesale customer water purchases from the prior fiscal year. One-twelfth of the annual surcharge is included in the monthly bill from SFPUC. Because each participant’s share of the debt service surcharge is proportional to the amount of water purchased during the prior fiscal year, the City’s share of the debt service will fluctuate from year to year.
The City paid its surcharge of $_______ during fiscal year 2023 which is included as a component of purchased water expenses in the Utility Enterprise Fund. The surcharge for fiscal year 2024 is estimated to be $79,459.
E. San Mateo County Animal Shelter
Since 1951, cities in San Mateo County have contracted with the County to manage animal control field and sheltering services. In September 2014, all the municipalities signed an agreement to share in the construction costs for a new animal control center by repaying the County through a 30-year, interest-free lease agreement. Construction of the new animal shelter building was completed in 2020, and certificate of occupancy was issued. The municipalities’ final shared responsibility was determined to be $25.7 million. Each municipalities’ share of the annual lease payment is based on a methodology of a three-year average of shelter use and percentage of population, and is due each July 31st. The City’s annual lease payment for FY2023-2024 is $_________.
UNAUDITED DRAFT - to be destroyed after review
80 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 14 – SEGMENT INFORMATION
The City issued utility revenue bonds to finance the repayment of the 2012 Brisbane Installment Sale Agreement. The water, sewer and Guadalupe Valley Municipal Improvement District activities are accounted for in the Utility Enterprise Fund. Segment information is presented below:
Utility Fund Statement of Net Position
Guadalupe
Valley Municipal
Improvement Total
Water Sewer District Utility
ASSETS
Current assets:
Cash and investments $294,201 ($4,246,331) $7,841,799 $3,889,669 Restricted cash 37 9 47 93
Accounts receivable, net 389,019 389,020 389,020 1,167,059 Taxes receivable 649 649
Interest receivable 6,025 3,949 8,333 18,307
Total current assets 689,282 (3,853,353) 8,239,848 5,075,777 Noncurrent assets:
Capital assets:
Non-depreciable 180,266 22,839 673,097 876,202
Depreciable, net 8,519,673 5,176,624 12,346,212 26,042,509 Total capital assets 8,699,939 5,199,463 13,019,309 26,918,711 Total noncurrent assets 8,699,939 5,199,463 13,019,309 26,918,711 Total assets 9,389,221 1,346,110 21,259,157 31,994,488
DEFERRED OUTFLOWS
Deferred outflows related to pension 233,289 233,290 233,290 699,869 Deferred outflows related to OPEB 24,575 24,576 24,576 73,727 Total Deferred Outflows 257,864 257,866 257,866 773,596
LIABILITIES
Current liabilities:
Accounts payable 263,994 263,992 263,992 791,978
Accrued payroll 15,085 15,085 15,084 45,254
Interest payable 23,520 23,519 23,519 70,558
Compensated absences 9,324 3,698 3,413 16,435
Deposits 6,433 6,433 6,433 19,299
Bonds payable due within one year 138,334 138,333 138,333 415,000 Unearned revenue 238,782 238,782 238,782 716,346
Total current liabilities 695,472 689,842 689,556 2,074,870 Noncurrent liabilities:
Compensated absences 27,972 10,239 11,095 49,306
Advances from other funds
Bonds payable due in more than one year 1,768,333 1,768,333 1,768,334 5,305,000 Net pension liability 338,065 338,066 338,066 1,014,197 Net OPEB liability 68,003 68,004 68,004 204,011
Total noncurrent liabilities 2,202,373 2,184,642 2,185,499 6,572,514 Total liabilities 2,897,845 2,874,484 2,875,055 8,647,384
DEFERRED INFLOWS
Deferred inflows related to pension 46,556 46,556 46,555 139,667 Deferred inflows related to OPEB 19,700 19,700 19,700 59,100 Total Deferred Inflows 66,256 66,256 66,255 198,767
NET POSITION
Invested in capital assets, net of related debt 6,793,272 3,292,797 11,112,735 21,198,804 Restricted for:
Capital projects 250,432 159,366 349,087 758,885
Unrestricted (360,722) (4,788,926) 7,113,892 1,964,244
Total net position $6,682,982 ($1,336,763) $18,575,714 $23,921,933 UNAUDITED DRAFT - to be destroyed after review
81 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 14 – SEGMENT INFORMATION (Continued)
Utility Fund Statement of Activities
Guadalupe
Valley Municipal
Improvement Total
Water Sewer District Utility
OPERATING REVENUES:
Charges for services $1,949,472 $1,277,679 $2,696,251 $5,923,402 Total operating revenues 1,949,472 1,277,679 2,696,251 5,923,402 OPERATING EXPENSES:
Costs of sales and services $1,113,779 $1,526,347 $1,325,662 3,965,788 General and administrative 1,069,361 819,310 918,724 2,807,395 Depreciation 233,335 82,565 336,272 652,172
Total operating expenses 2,416,475 2,428,222 2,580,658 7,425,355 OPERATING INCOME (LOSS) (467,003) (1,150,543) 115,593 (1,501,953) NONOPERATING REVENUES (EXPENSES):
Taxes and assessments 34,827 34,827
Investment income 51,098 25,548 51,099 127,745
Interest expense (86,755) (21,673) (108,367) (216,795)
Total nonoperating revenues (expenses) (35,657) 3,875 (22,441) (54,223) INCOME (LOSS) BEFORE TRANSFERS (502,660) (1,146,668) 93,152 (1,556,176) Developer Contributions 60,000 - - 60,000
Transfers in 15,851 15,852 15,852 47,555
Transfers out (20,095) (20,097) (20,097) (60,289)
Total transfers in and out 55,756 (4,245) (4,245) 47,266 Change in net positions (446,904) (1,150,913) 88,907 (1,508,910) NET POSITIONS:
Beginning of year 7,129,886 (185,850) 18,486,807 25,430,843 End of year $6,682,982 ($1,336,763) $18,575,714 $23,921,933 UNAUDITED DRAFT - to be destroyed after review
82 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 14 – SEGMENT INFORMATION (Continued)
Utility Fund Statement of Cash Flows
Guadalupe
Valley Municipal
Improvement Total
Water Sewer District Utility
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers $1,998,709 $1,211,300 $2,625,487 $5,835,496 Cash payments to suppliers (2,219,222) (2,377,757) (2,279,616) (6,876,595) Net cash provided (used) by operating activities (220,513) (1,166,457) 345,871 (1,041,099) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Taxes and assessments 34,603 34,603
Transfers in 15,851 15,852 15,852 47,555
Transfers out (20,095) (20,097) (20,097) (60,289)
Net cash provided (used) by noncapital financing activities (4,244) (4,245) 30,358 21,869
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Acquisition of property, plant and equipment 260,137 (910,469) 650,333 1 Principal payment of debt (133,332) (133,335) (133,333) (400,000) Interest paid (88,689) (23,608) (110,301) (222,598)
Developer contributions 60,000 60,000
Net cash provided (used) by capital
and related financing activities 98,116 (1,067,412) 406,699 (562,597) CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income received 49,030 24,142 48,357 121,529 Net cash provided (used) by investing activities 49,030 24,142 48,357 121,529 Net increase (decrease) in cash and cash equivalents (77,611) (2,213,972) 831,285 (1,460,298) CASH AND CASH EQUIVALENTS:
Beginning of year 371,849 (2,032,350) 7,010,561 5,350,060 End of year $294,238 ($4,246,322) $7,841,846 $3,889,762 FINANCIAL STATEMENT PRESENTATION:
Cash and cash equivalents $294,201 ($4,246,331) $7,841,799 $3,889,669 Restricted cash 37 9 47 93
Total cash and cash equivalents $294,238 ($4,246,322) $7,841,846 $3,889,762
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Operating income (loss) ($467,003) ($1,150,543) $115,593 ($1,501,953) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation 233,335 82,565 336,272 652,172
Changes in current assets and liabilities:
Accounts receivable 49,237 (66,379) (70,764) (87,906)
Accounts payable and accrued liabilities 16,182 16,180 16,180 48,542 Accrued payroll 409 409 407 1,225
Compensated absences 3,984 856 4,840
Deposits 290 290 290 870
Net pension liability, deferred inflows and deferred outflows (57,289) (57,289) (57,289) (171,867) Net OPEB liability, deferred inflows and deferred outflows 4,326 4,326 4,326 12,978 Total adjustments 246,490 (15,914) 230,278 460,854
Net cash provided (used) by operating activities ($220,513) ($1,166,457) $345,871 ($1,041,099) UNAUDITED DRAFT - to be destroyed after review
83 B.
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
NOTE 15 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY
ACTIVITIES
A. Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund The activities of the Successor Agency are reported in the Successor Agency to the 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.
Cash and investments of the Successor Agency as of June 30, 2023 are discussed in Note 3.
B. Long-Term Obligations
Balance Balance Current Non-current
Description June 30, 2022 Retirements June 30, 2023 Portion Portion 2013 Tax Allocation Bonds $6,615,000 ($1,510,000) $5,105,000 $1,570,000 $3,535,000 Total long-term debt $6,615,000 ($1,510,000) $5,105,000 $1,570,000 $3,535,000 Loans payable to the City of Brisbane
City Marina Enterprise Fund $2,295,996 $2,295,996 $2,295,996 Total loans payable to the City $2,295,996 $2,295,996 $2,295,996 C. 2013 Tax Allocation Bonds
On December 27, 2013, the Successor Agency issued $17,470,000 principal amount of 2013 Tax Allocation Bonds to refund the 1998 Housing Set Aside Revenue Bonds and the 2001 Tax Allocation Bonds. Net proceeds of $19,380,905 were deposited in an irrevocable trust with an escrow agent to provide funds for the future debt service payments on the refunded bonds. As a result, the 1998 Housing Set Aside Revenue Bonds and the 2001 Tax Allocation Bonds are considered defeased and the liability for those bonds has been removed from the Successor Agency’s Statement of Net Position. The reacquisition price was less than the net carrying value of the refunded bonds by $3,485,599, which is recorded as a Deferred Outflow – Deferred Charges on Refunding. The balance of the Deferred Outflow as of June 30, 2023 was $938,431.
The 2013 Tax Allocation Bonds mature annually through May 2028, in amounts ranging from $90,000 to $1,710,000. Principal and interest on the bonds are payable semiannually on each February 1 and August 1, and the Bonds bear interest 4.14% per annum. The Bonds are payable from and secured by tax revenue distributed from the county’s Redevelopment Property Tax Trust Fund. The bond covenant contains events of default that require the revenue of the Successor Agency to be applied by the Trustee as specified in the terms of the agreement if any of the following conditions occur: default on debt service payments; the failure of the Successor Agency to observe or perform the conditions, covenants, or agreement terms of the debt; bankruptcy filing by the Successor Agency; or if any court or competent jurisdiction shall assume custody or control of the Successor Agency.
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CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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NOTE 15 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
Total principal and interest remaining to be paid on the bonds is $5,498,294. Principal and interest paid for the current year was $1,768,884.
The annual debt service requirements on the bonds were as follows:
Year ending
June 30: Principal Interest Total
2024 $1,570,000 $195,098 $1,765,098
2025 1,645,000 129,272 1,774,272
2026 1,710,000 60,547 1,770,547
2027 90,000 6,521 96,521
2028 90,000 1,856 91,856
Total $5,105,000 $393,294 $5,498,294
D. Commitments and Contingencies
State Approval of Enforceable Obligations
The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semiannually 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. The Successor Agency submitted its last and final ROPS which was approved by the State Department of Finance in May 2018.
NOTE 16 – CONCENTRATION RISK
In November 2011, the City placed a special business license tax on the ballot for recycling firms handling more than 100,000 tons of material. For the year ended June 30, 2023, more than 13.60% of the City’s General Fund’s total revenues were derived from a single company.
NOTE 17 – SUBSEQUENT EVENTS
A. Bond issuance
In _____, 2023, the City issued the ____ Bonds in the amount of $______.
B. FEMA Assistance
In January 2023, the City incurred significant infrastructure damages due to the major storms that hit most of California. The City has received notification from FEMA that the City will receive grant funding to cover certain construction costs.
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REQUIRED SUPPLEMENTARY INFORMATION
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86 B.
CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
CalPERS Miscellaneous Cost-Sharing Defined Benefit Pension Plan As of fiscal year ending June 30, 2023
Last 10 Years*
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AND RELATED RATIOS Miscellaneous Plan
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 Plan's Proportion of the Net Pension
Liability/Asset 0.08842% 0.26367% 0.26663% 0.27216% 0.27979% Plan's Proportionate Share of the Net Pension
Liability/(Asset) $5,501,793 $7,233,676 $8,890,553 $10,728,646 $10,544,479 Plan's Covered Payroll $3,483,585 $3,911,732 $4,105,895 $4,485,437 $4,822,422 Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of it's
Covered Payroll 157.93% 184.92% 216.53% 239.19% 218.66% Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of the Plan's
Total Pension Liability 83.03% 21.65% 25.24% 27.18% 25.57% * Fiscal year 2015 was the 1st year of implementation, additional years will be presented as they become available.
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CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
Miscellaneous Plan
6/30/2019 6/30/2020 6/30/2021 6/30/2022
0.28626% 0.29337% 0.21971% 0.31739%
$11,463,436 $12,374,693 $4,171,920 $14,851,196
$5,116,913 $5,681,738 $6,036,451 $6,608,303
224.03% 217.80% 69.11% 224.74%
26.21% 27.01% 10.94% 38.95%
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CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
CalPERS Miscellaneous Cost-Sharing Defined Benefit Pension Plan As of fiscal year ending June 30, 2023
Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
Miscellaneous Plan
Fiscal Year Ended June 30, 2015 2016 2017 2018 2019
Actuarially determined contribution $608,408 $414,697 $867,272 $956,571 $1,116,863 Contributions in relation to the actuarially
determined contributions (608,408) (414,697) (867,272) (956,571) (1,116,863) Contribution deficiency (excess) $0 $0 $0 $0 $0
Covered payroll $3,911,732 $4,105,895 $4,485,437 $4,822,422 $5,116,913 Contributions as a percentage of covered
payroll 15.55% 10.10% 19.34% 19.84% 21.83%
Notes to Schedule
Valuation date: 6/30/2012 6/30/2017
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
* Fiscal year 2015 was the 1st year of implementation, additional years will be presented as they become available.
The probabilities of mortality are derived from CalPERS' Membership Data for all Funds based on CalPERS' specific data from a 2017 CalPERS Experience Study. The table includes 15 years of mortality improvements using the Society of Actuaries Scale BB.
Entry age
Level percentage of payroll, closed
6/30/2013 6/30/2014 6/30/2015
55 yrs. Misc., 60 yrs. Tier 2, 62 yrs. Tier 3
15 years as of the valuation date
5-year smoothed market
2.50%
Varies by Entry Age and Service
7.15%, net of pension plan investment and administrative expenses, including inflation UNAUDITED DRAFT - to be destroyed after review
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CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
Miscellaneous Plan
2020 2021 2022 2023
$1,321,787 $1,485,149 $1,637,353 $1,792,450
(1,321,787) (1,485,149) (1,637,353) (1,792,450)
$0 $0 $0 $0
$5,681,738 $6,036,451 $6,608,303 $6,963,537
23.26% 24.60% 24.78% 25.74%
6/30/2018 6/30/2019 6/30/2020 6/30/2021
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CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
CalPERS Safety Cost-Sharing Defined Benefit Pension Plan As of fiscal year ending June 30, 2023
Last 10 Years*
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AND RELATED RATIOS Safety Plan
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 Plan's Proportion of the Net Pension
Liability/Asset 0.10478% 0.16040% 0.17166% 0.17235% 0.17788% Plan's Proportionate Share of the Net Pension
Liability/(Asset) $6,519,984 $6,609,094 $9,262,442 $10,298,325 $10,437,355 Plan's Covered Payroll $2,604,534 $2,895,118 $2,549,311 $3,201,004 $3,050,669 Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of it's
Covered Payroll 250.33% 228.28% 363.33% 321.72% 342.13% Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of the Plan's
Total Pension Liability 81.42% 18.66% 25.33% 25.59% 24.51% * Fiscal year 2015 was the 1st year of implementation, additional years will be presented as they become available.
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CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
Safety Plan
6/30/2019 6/30/2020 6/30/2021 6/30/2022
0.18250% 0.18910% 0.34669% 0.21085%
$11,392,654 $12,598,788 $12,166,933 $14,488,529
$3,205,518 $3,087,221 $3,479,518 $3,877,024
355.41% 408.09% 349.67% 373.70%
25.38% 26.58% 19.13% 22.78%
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CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
CalPERS Safety Cost-Sharing Defined Benefit Pension Plan As of fiscal year ending June 30, 2023
Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
Safety Plan
Fiscal Year ending June 30: 2015 2016 2017 2018 2019
Actuarially determined contribution $544,677 $446,822 $824,601 $928,535 $1,074,377 Contributions in relation to the actuarially
determined contributions (544,677) (446,822) (824,601) (928,535) (1,074,377) Contribution deficiency (excess) $0 $0 $0 $0 $0
Covered payroll $2,895,118 $2,549,311 $3,201,004 $3,050,669 $3,205,518 Contributions as a percentage of covered
payroll 18.81% 17.53% 25.76% 30.44% 33.52%
Notes to Schedule
Valuation date: 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2017 Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
* Fiscal year 2015 was the 1st year of implementation, additional years will be presented as they become available. 55 yrs. Safety, 57 yrs. Tier 2
The probabilities of mortality are derived from CalPERS' Membership Data for all Funds based on CalPERS' specific data from a 2017 CalPERS Experience Study. The table includes 20 years of mortality improvements using the Society of Actuaries Scale BB.
Entry age
Varies by Entry Age and Service
2.75%
5-year smoothed market
15 years as of the valuation date
Level percentage of payroll, closed
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CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
Safety Plan
2020 2021 2022 2023
$1,210,715 $1,400,561 $1,571,251 $1,734,220
(1,210,715) (1,400,561) (1,571,251) (1,734,220)
$0 $0 $0 $0
$3,087,221 $3,479,518 $3,877,024 $3,879,797
39.22% 40.25% 40.53% 44.70%
6/30/2018 6/30/2019 6/30/2020 6/30/2021
RSI-PARS
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CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
PARS Miscellaneous Plan, Agent-Multiple Employer Defined Benefit Plan Last 10 Years*
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS Measurement Date, June 30: 2015 2016 2017 2018 2019
Plan total pension liability
Service Cost $15,613 $16,949 $17,288 $17,847 $18,204
Interest 27,586 32,611 36,104 35,112 39,287
Effect of plan changes
Effect of liability gains or losses 4,039 10,905
Effect of assumption changes or inputs 23,212 (29,530)
Benefit payments
Net change in total pension liability 43,199 76,811 23,862 63,864 57,491 Total pension liability - beginning 378,473 421,672 498,483 522,345 586,209 Total pension liability - ending (a) $421,672 $498,483 $522,345 $586,209 $643,700 Plan fiduciary net position
Administrative expenses ($1,799) ($1,878) ($2,104) ($2,408) ($2,617) Member contributions
Net investment income 8,348 166 40,594 27,708 33,121
Employer contributions 20,560 21,117 21,158 21,158 35,337 Net change in plan fiduciary net position 27,109 19,405 59,648 46,458 65,841 Plan fiduciary net position - beginning 342,254 369,363 388,768 448,416 494,874 Plan fiduciary net position - ending (b) $369,363 $388,768 $448,416 $494,874 $560,715 Plan net pension liability (asset) - ending (a)-(b) $52,309 $109,715 $73,929 $91,335 $82,985 Plan fiduciary net position as a percentage of the total pension liability 87.59% 77.99% 85.85% 84.42% 87.11%
Covered payroll $215,862 $225,028 $229,529 $237,847 $247,000 Net pension liability (asset) as percentage of coveredemployee payroll 24.23% 48.76% 32.21% 38.40% 33.60% * Fiscal year 2015 was the 1st year of implementation of GASB 68, additional years will be presented as they become available.
Source: PARS Valuation
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CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
2020 2021 2022 2023
$17,181 $17,525 $16,841 $16,841
42,958 43,510 47,433 50,532
11,610 21,424
(63,596) (38,013)
8,153 61,035 47,685 67,373
643,700 651,853 712,888 760,573
$651,853 $712,888 $760,573 $827,946
($2,940) ($3,530) ($3,980) ($3,747)
18,504 138,590 (108,805) 52,283
37,400 37,400 37,400 38,838
52,964 172,460 (75,385) 87,374
560,715 613,679 786,139 710,754
$613,679 $786,139 $710,754 $798,128
$38,174 ($73,251) $49,819 $29,818
94.14% 110.28% 93.45% 96.40%
$251,940 $263,451 $263,451 $263,451
15.15% -27.80% 18.91% 11.32%
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CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
PARS Miscellaneous Plan, Agent-Multiple Employer Defined Benefit Plan Last 10 Years*
SCHEDULE OF CONTRIBUTIONS
Fiscal Year ended June 30: 2015 2016 2017 2018 2019
Actuarially determined contributions $20,560 $21,117 $21,158 $21,158 $35,337 Contributions in relation to the actuarially determined contributions (20,560) (21,117) (21,158) (21,158) (35,337) Contribution deficiency (excess)
Covered payroll $215,862 $225,028 $229,529 $237,847 $247,000 Contributions as a percentage of covered payroll 9.52% 9.38% 9.22% 8.90% 14.31% Notes to Schedule
Valuation date: 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2017 Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age Normal
Amortization method Level dollar
Asset valuation method Market Value
Inflation 2.50%
Salary increases
Investment rate of return
Retirement age
Mortality
* Fiscal year 2015 was the 1st year of implementation of GASB 68, additional years will be presented as they become available.
Source: City's general ledger and PARS Actuarial Valuation Pre-Retirement: Consistent with the Non-Industrial rates used to value the Miscellaneous Public Agency CalPERS Pension Plans after June 30, 2017.
Post-Retirement: Consistent with the Non-Industrial rates used to value the Miscellaneous Public Agency CalPERS Pension Plans after June 30, 2017.
2.00%
100% retirement assumed at age 68
6.5%, net of pension plan investment expense, including inflation (7.0% for fiscal year 2016 and prior)
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CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
REVIEW DRAFT 3/28/2024 7:38 PM
2020 2021 2022 2023
$37,400 $37,400 $37,400 $38,838
(37,400) (37,400) (37,400) (38,838)
$251,940 $263,451 $263,451 $263,451
14.84% 14.20% 14.20% 14.74%
6/30/2018 6/30/2019 6/30/2021 6/30/2022
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CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
OPEB Plan
Schedule of Changes in the City's
Net OPEB Liability and Related Ratios
Last Ten Fiscal Years*
For the Measurement Period Ended June 30 2017 2018 2019 2020 2021 2022 Total OPEB Liability
Service Cost $220,254 $213,187 $218,316 $192,805 $216,149 $259,497 Interest 562,248 443,442 464,182 534,815 534,725 450,032 Changes of benefit terms
Differences between expected and actual experience (905,016) 1,384,906 (131,962) (1,567,041) 47,929 Changes of assumptions (1,676,108) 16,310 (664,205) 392,074 213,210 158,569 Benefit Payments (246,909) (219,950) (241,551) (253,735) (245,509) (355,455) Implicit rate subsidy fulfilled (162,600) (104,418) (93,910) (122,211) (141,442) (118,682) Net change in Total OPEB Liability (2,208,131) 348,571 1,067,738 611,786 (989,908) 441,890 Total OPEB Liability at beginning of year 8,980,463 7,027,752 7,376,323 8,444,061 9,055,847 8,065,939 Total OPEB Liability at end of year 6,772,332 $7,376,323 $8,444,061 $9,055,847 $8,065,939 $8,507,829 Plan Fiduciary Net Position
Contributions - employer $346,909 $619,950 $641,551 $853,735 $678,405 $355,455 Implicitly subsidy - employer 162,600 104,418 93,910 122,211 745,509 118,682 Contributions - member
Net investment income 74,661 79,874 121,293 105,672 141,442 (517,416) Benefit payments (246,909) (219,950) (241,551) (253,735) (245,509) (355,455) Implicit rate subsidy fulfilled (162,600) (104,418) (93,910) (122,211) (141,442) (118,682) Administrative expenses (1,353) (3,123) (4,352) (14,509) (19,916) (23,379) Net change in Plan Fiduciary Net Position 173,308 476,751 516,941 691,163 1,158,489 (540,795) Plan Fiduciary Net Position at beginning of year 1,022,421 1,195,729 1,672,480 2,189,421 2,880,584 4,039,073 Plan Fiduciary Net Position at end of year $1,195,729 $1,672,480 $2,189,421 $2,880,584 $4,039,073 $3,498,278 City's Net OPEB Liability (Asset) at end of year $5,576,603 $5,703,843 $6,254,640 $6,175,263 $4,026,866 $5,009,551 Plan's Fiduciary Net Position as percentage of Total OPEB Liability 17.0% 22.7% 25.9% 31.8% 50.1% 41.1% Covered Payroll $6,789,392 $6,976,100 $7,088,924 $8,425,996 $9,305,238 $10,058,563 Net OPEB Liability as percentage of covered-employee payroll 85.90% 81.80% 88.23% 73.30% 43.30% 49.80% Notes:
* Fiscal year 2018 was the first year of implementation, additional years will be shown when available.
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CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
OPEB Plan
Schedule of Employer Contributions
Last Ten Fiscal Years*
For the Fiscal Year Ended June 30 2018 2019 2020 2021 2022 2023 Actuarially determined contributions $794,015 $621,742 $672,857 $711,821 $586,593 $650,426 Contributions in relation to the actuarially
determined contribution 509,509 724,368 735,461 975,946 886,951 474,137 Contributions deficiency (excess) $284,506 ($102,626) ($62,604) ($264,125) ($300,358) $176,289 Covered Payroll $6,789,392 $6,976,100 $7,088,924 $8,425,996 $9,305,238 $10,058,563 Contributions as a percentage of covered payroll 7.50% 10.38% 10.37% 11.58% 9.53% 4.71% Notes to Schedule:
Valuation date 6/30/2022
Actuarial cost method Entry Age normal, level percent of pay Amortization method
Remaining amortization period 20 years
Inflation 2.30%
Projected salary increases 2.80%
Healthcare trend rate
Rate of Return on Assets 5.45%
Mortality rate CalPERS Rates
Retirement Rate CalPERS Rates
* Fiscal year 2018 was the first year of implementation, additional years will be shown when available.
Closed period, level percent of pay
7.00%, trending down to 4.04%
Methods and assumptions used to determine contribution rates:
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B.
CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
The City follows these procedures in establishing the budgetary data reflected in the financial statements
1. A City Council goal setting session is scheduled to determine the major objectives of the City’s financial plan for the year. Goals are approved by the Council and incorporated into a detailed preliminary budget, which is issued for public comment. After a series of public hearings, the budget is adopted by the City Council prior to the beginning of the ensuing fiscal year (July 1).
2. The City Manager is authorized to transfer budgetary amounts within a single fund; however, any revisions that alter the total expenditures of any fund must be approved by the City Council.
3. Legally adopted budgets and formal budgetary integration is employed as a management control device during the year for the General Fund, certain special revenue funds, and the debt service funds. The Fire Training, Contract Employees, Tree Plant and Habitat Conservation Special Revenue Funds are special revenue funds with single focus purpose that when needed are approved by City Council or part of an existing contract and therefore did not have adopted budgets for the fiscal year. The capital projects funds did not have adopted budgets for the fiscal year, but all capital projects are approved by City Council prior to commitment. The legal level of budgetary control is the fund level.
4. Budgets for those governmental funds budgeted are adopted on a basis consistent with GAAP.
5. Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended June 30, 2023, based on the calculations by City Management, proceeds of taxes did not exceed the appropriations limit.
6. Budgeted revenue amounts represent the original budget modified by adjustments authorized during the year. Budgeted expenditure amounts represent original appropriations adjusted for supplemental appropriations during the year which were contingent upon new or additional revenue sources and reappropriated amounts for prior year encumbrances. These necessary supplemental appropriations were immaterial in relation to the budget as originally adopted. The Administrative Services Director must approve adjustments to departmental budgets; however, management may amend the budgeted amounts within departmental expenditure classifications.
7. Appropriations lapse at the end of the fiscal year to the extent they have not been expended or encumbered are re-budgeted for the coming year.
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SUPPLEMENTAL INFORMATION
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B.
INTERNAL SERVICE FUNDS
Internal Service Funds are used to finance and account for special activities and services performed by a designated department for other departments in the City on a cost reimbursement basis.
GASB Statement 34 requires that for the Statement of Activities, the net revenues or expenses of each internal service fund be eliminated by netting them against the operations of the other City departments which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position.
However, internal service funds are still presented separately in the Fund financial statements, including the funds below.
Dental Self-Insurance Fund. The City self-insures its employee dental coverage; revenues are received from charges to operating departments based upon an agreed upon contribution per worker and reimbursements to employees for dental expenses are paid from this fund.
Fringe Benefits Fund. To account for the costs of unexpected benefit costs and other negotiated labor agreement provisions.
Flexible Benefits Fund. This fund receives revenue from employee cafeteria plans to pay for medical and childcare reimbursements as outlined in the 125 plan. At the end of each plan year the remaining funds become the property of the City.
General Liability Fund. The City self-insures a portion of each liability loss. Revenues are received from charges to operating departments based on payroll.
Workers' Compensation Fund. The City self-insures for a portion of Workers' Compensation.
Revenues are received from charges to operating departments based on payroll.
OPEB Fund. This fund was established to track retiree stipends and other post-employment benefits, however the OPEB liability is recorded only at the entity-wide level.
Vehicle Replacement Fund. This fund was established in April 2015 with the purpose of setting aside the replacement value of City-owned vehicles.
Facilities Maintenance. This fund was established to account for the expenditures for the maintenance and repairs of various city-owned facilities. Revenues in FY16 were received as part of a fiscal surplus. Future years will establish budgeted transfers to this fund in anticipation of planned maintenance and repairs.
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CITY OF BRISBANE
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2023
Dental Fringe Flexible General
Self-Insurance Benefits Benefits Liability
ASSETS
Current Assets:
Cash and investments $2 $151,303 $77 $9,444
Restricted cash and investments
Accounts receivable, net 96,672 2,977
Interest receivable 679
Total Assets 2 248,654 3,054 9,444
LIABILITIES
Current Liabilities:
Accounts payable and accrued liabilities 8,227 321 2,957 Due to other funds 91,741 1,768 746,046
Accrued payroll 218,842
Interest payable 2,022
Accrued claims payable 13,988
Total Current Liabilities 99,968 219,163 4,725 762,056
Noncurrent Liabilities:
Accrued claims payable 23,773
Total Liabilities 99,968 219,163 4,725 785,829
NET POSITION
Unrestricted (99,966) 29,491 (1,671) (776,385)
Total Net Position (Deficits) ($99,966) $29,491 ($1,671) ($776,385) UNAUDITED DRAFT - to be destroyed after review
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Vehicle
Workers' OPEB Replacement Facilities
Compensation Fund Fund Maintenance Total
$1,090,851 $607,568 $294,256 $2,153,501
$174,419 174,419
1,320 100,969
4,892 2,724 8,295
174,419 1,095,743 610,292 295,576 2,437,184
26,674 20 38,199
48,714 13,790 902,059
11,172 230,014
218 2,240
541,200 555,188
627,978 13,810 1,727,700
1,098,000 1,121,773
1,725,978 13,810 2,849,473
(1,551,559) 1,095,743 596,482 295,576 (412,289)
($1,551,559) $1,095,743 $596,482 $295,576 ($412,289)
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CITY OF BRISBANE
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2023
Dental Fringe Flexible General
Self-Insurance Benefits Benefits Liability
OPERATING REVENUES
Charges for sales and services $154,923 $880,211
Other revenue
Total Operating Revenues 154,923 880,211
OPERATING EXPENSES
Cost of sales and services
General and administrative 129,554 1,031,831
Other expenses
Total Operating Expenses 129,554 1,031,831
Operating Income (Loss) 25,369 (151,620)
NONOPERATING REVENUES (EXPENSES)
Investment earnings (702) $2,976 $8 (29,132)
Total Nonoperating Revenues (Expenses) (702) 2,976 8 (29,132)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENSES 24,667 2,976 8 (180,752)
Transfers in
Change in Net Position 24,667 2,976 8 (180,752)
BEGINNING NET POSITION (DEFICIT) (124,633) 26,515 (1,679) (595,633) ENDING NET POSITION (DEFICIT) ($99,966) $29,491 ($1,671) ($776,385) UNAUDITED DRAFT - to be destroyed after review
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Vehicle
Workers' OPEB Replacement Facilities
Compensation Fund Fund Maintenance Total
$616,140 $599,412 $2,250,686
5,689 5,689
621,829 599,412 2,256,375
26,399 26,399
1,654,114 2,815,499
145,451 377,605 $681,413 1,204,469
1,799,565 404,004 681,413 4,046,367
(1,177,736) 195,408 (681,413) (1,789,992)
(2,060) 8,290 4,482 $5,664 (10,474)
(2,060) 8,290 4,482 5,664 (10,474)
(1,179,796) 203,698 (676,931) 5,664 (1,800,466)
541,447 541,447
(1,179,796) 203,698 (135,484) 5,664 (1,259,019)
(371,763) 892,045 731,966 289,912 846,730
($1,551,559) $1,095,743 $596,482 $295,576 ($412,289)
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CITY OF BRISBANE
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2023
Dental Fringe Flexible General
Self-Insurance Benefits Benefits Liability
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received to/ from customers $154,923 $4,048 $21 $880,211 Cash payments to suppliers (144,052) (1,057,337)
Cash Flows from Operating Activities 10,871 4,048 21 (177,126)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Due to other funds receipts (10,168) 211,143
Transfers in
Cash Flows from Noncapital Financing Activities (10,168) 211,143
CASH FLOWS FROM INVESTING ACTIVITIES
Interest paid (701) (27,600)
Interest income 2,624 8
Cash Flows from Investing Activities (701) 2,624 8 (27,600) Net Cash Flows 2 6,672 29 6,417
Cash and investments at beginning of period 144,631 48 3,027 Cash and investments at end of period $2 $151,303 $77 $9,444 Reconciliation of operating income (loss) to
net cash flows from operating activities:
Operating income (loss) $25,369 ($151,620)
Adjustments to reconcile operating income to
net cash flows from operating activities:
Accounts receivable $681
Accounts payable and accrued liabilities (14,498) (139,599) $21 Accrued payroll 142,966
Accrued claims payable (25,506)
Cash Flows from Operating Activities $10,871 $4,048 $21 ($177,126) UNAUDITED DRAFT - to be destroyed after review
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Replacement
Workers' OPEB Vehicle Facilities
Compensation Fund Fund Maintenance Total
$621,829 $599,109 ($667) $2,259,474
(1,167,604) (404,004) ($683,008) (3,456,005)
(545,775) 195,105 (683,008) (667) (1,196,531)
48,714 107 249,796
541,447 541,447
48,714 541,554 791,243
(705) (29,006)
5,408 3,441 5,664 17,145
(705) 5,408 3,441 5,664 (11,861)
(497,766) 200,513 (138,013) 4,997 (417,149)
672,185 890,338 745,581 289,259 2,745,069
$174,419 $1,090,851 $607,568 $294,256 $2,327,920
($1,177,736) $195,408 ($681,413) ($1,789,992)
($667) 14
21,837 (303) (1,595) (134,137)
924 143,890
609,200 583,694
($545,775) $195,105 ($683,008) ($667) ($1,196,531)
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INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the City Council
City of Brisbane, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the basic financial statements of the City of Brisbane, California, as of and for the year ended June 30, 2023, and have issued our report thereon dated DATE.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
We have also issued a separate Memorandum on Internal Control dated DATE, which is an integral part of our audit and should be read in conjunction with this report.
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REVIEW DRAFT 3/28/2024 7:38 PM
City’s Response to Findings
The City’s response to the findings identified in our audit is described in our separately issued Memorandum on Internal Control dated DATE, which is an integral part of our audit and should be read in conjunction with this report. The City’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Pleasant Hill, California
DATE
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File Attachments for Item:
C. Budget Workshop
i. City Manager Introduction to the 2024/25 Budget
ii. Finance Director Overview of the 2024/25 Budget
iii. Department Presentations
- Public Works / Utilities / Marina/Library
- Community Development
- Police Department
- Fire Department
- Parks & Recreation / Co-Sponsorships
- Finance
- Human Resources
- City Manager / City Council
- City Clerk
- Central Services / Debt
iv. Wrap Up
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Overview of Proposed Budget for FY2024/25 Page 1 of 7
CITY COUNCIL AGENDA REPORT
Meeting Date: May 30, 2024
From: Carolina Yuen
Subject: Overview of Proposed Budget for Fiscal Year 2024/25 Community Goal/Result
Fiscally Prudent – Brisbane’s fiscal vitality will reflect sound decisions which also speak to the values of the community
Purpose
To provide a fiscal plan which provides flexibility to City Council and the Community to provide for services during the time of unknown economic circumstances while planning for the longterm recovery.
Recommendation
It is recommended that the City Council receive a general overview and department presentations of the proposed Budget for Fiscal Year (FY) 2024/25 and consider for approval at the next City Council meeting scheduled for June 6, 2024.
Background
For several years, the City has adopted two-year budgets. Most recently the FY2020-22 biennial budget was approved on June 4th, 2020, adopting Resolution 2020-23. Subsequently, the City and local economy were in the midst of the impact of COVID-19, other volatile economic conditions, and City staff were implementing a new Priority Based Budgeting software program for the next year. The City Manager therefore proposed a one-year budget covering the period of July 1, 2022, through June 30, 2023 (FY2022/23) which was adopted on June 16, 2022, and covering the period of July 1, 2023, through June 30, 2024 (FY2023/24) which was adopted on June 29, 2023. The City Manager announced his retirement for the end of 2023 and is therefore proposing another one-year budget covering the period of July 1, 2024 through June 30, 2025 (FY2024/25) with the recommendation of returning to a biennial budget schedule starting the subsequent fiscal year.
Discussion
The City’s budget document contains revenues, appropriations, and other financial information pertaining to all City operating budgets. The Capital Improvement Plan is not included, as it is usually reviewed during the off years of the biennial budget cycle and will therefore be revisited at a later period. The City’s budget goal is to achieve a balanced budget with revenues, including reimbursements or transfer from other funds for services provided, equal to or greater than expenditures. At times, the City can plan for revenues to be less than expenses, and therefore the budget is balanced by using its available resources or Fund Balance. 114
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Overview of Proposed Budget for FY2024/25 Page 2 of 7
Budgetary control is maintained at the Department/Program level. The City Manager may approve transfer of appropriation from one program, activity, or line item within or across departments. Total appropriation within a fund may be increased by the City Manager up to $200,000. Anything exceeding this threshold can only be increased with Council approval.
Departments monitor and control budgets using the City’s financial system, through reports of revenue and expenditure accounts. The financial system monitors expenditures down to the line-item level. The Council is provided with a mid-year financial status report that reflects year-to-date expenditures and revenues compared to budget.
The presentation tonight will focus on the General Fund which supports the City’s main operations, funded by a variety of taxes, program fees and service charges. Information will also be presented for two proprietary funds (business-type activities) that are funded primarily through user charges -- the Utility Fund and the Marina Fund.
General Fund Revenues:
For FY2024/25, staff is projecting that revenues will decrease from the current year by approximately $251,000 from current year’s expected results, although increasing from the FY2023/24 budget by $1.9 million. The City expects Sales Taxes and Transient Occupancy Tax (TOT) to grow over the current year, but setting conservative targets for Property Taxes, Business Licenses, and Fees and Charges.
Property Taxes: Sierra Point construction continues to positively impact our property taxes which remain strong overall, but we’re projecting a decrease due to the offset from the reductions in ERAF and other miscellaneous county related tax distributions for a total decrease of $441,000 or 6% from mid-year FY24 projections. Budgeted Property Taxes of $6.4 million is 15% over the FY24 Budget.
Sales Taxes are expected to continue to increase from current year to a target of $5.9 million and $1.8 million for Bradley Burns and Transaction and Use Sales Tax, respectively. The City has now collected a full year of the Transaction and Use Sales Tax that went into effect in 2023, and although the results are below the original expectation of $2 million, it is still contributing strong revenues. Budgeted Sales Taxes of $7.8 million is 2% less than the FY24 Budget.
Transient Occupancy Tax (TOT): Although we are projecting an increase in (TOT) by $117,000 to $1.9 million, this revenue source is still projected to be well below our pre-COVID19 average of $3 million which appears to be the new normal. Short Term Rentals are providing additional TOT, but difficult to project. Budgeted TOT of $1.9 million remains flat with FY24 Budget.
Business License revenue is expected to decrease from mid-year projections by $158,000 starting with a known reduction in liquid storage revenues and conservative target for overall business licenses. However, the City has now collected a full year of the business license tax on hotels, raising our Business License revenue to $5.4 million which is 3% above the FY24 budget.
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Overview of Proposed Budget for FY2024/25 Page 3 of 7
Fees & Charges: We’ve seen growth in Park and Recreation charges due to expanded programming, but our Building and Planning fees are historically kept rather flat for budgeting purposes. Therefore, we are budgeting an increase of $355,000 from mid-year 2024 projections to $2,061,000 which is an increase of 1% over prior year’s budget.
Following is a comparison of the proposed FY25 Budget of our major revenue sources in comparison to previous years coming out of COVID:
Major
Revenue
Source
Actual
FY2021/22
Recovery
Actual
FY2022/23
Recovery
Projected
FY2023/24
Budget
FY2024/25
Property Tax $5,002,000 $6,186,000 $6,858,000 $6,418,000 Sales Tax $5,238,000 $6,908,000 $7,605,000 $7,767,000
TOT $1,299,000 $2,151,000 $1,784,000 $1,902,000
Business License $4,666,000 $5,778,000 $5,599,000 $5,441,000 Budgeted Revenue for FY2024/25 does not include bond funding for the City Hall Annex which is expected to be received and used in FY24. Budgeted Revenue also does not include any reimbursements from federal and/or state grants in response to the 2022/23 New Year’s Atmospheric River Storms. Staff is actively working with FEMA and CalOES but timing of receipt is unknown. A portion of the granted funds have been issued and received in the current fiscal year. Staff is expecting to receive at least $1.9 million in reimbursements.
General Fund Expenses:
Considering the revenues are not budgeted to outpace expenses in FY2024/25, staff is making the following recommendations and comments regarding expenses:
• We recommend the City continue to provide necessary services for FY2024/25 • Open positions should continue to be actively filled. There are no requests for additional staffing except for an IT position that was discussed and approved in FY23 as part of the Technology plan. Staff recommends resuming plans to recruit for this position in FY25.
• The City Hall expansion project and tenant improvements at the leased property located at 25 Park Place is expected to be completed by the start of FY2024/25. Bonds were issued in the amount of $5.4 million to cover improvements and furnishings for the property. Costs related to occupying the space and maintenance after the move are incorporated into the FY25 budget.
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Overview of Proposed Budget for FY2024/25 Page 4 of 7
• The City updated its labor agreements with the various bargaining groups in 2022. The agreements included agreed-upon rate increases of 6% effective July 2025, which are driving the majority of the increase to the Salaries and Benefits line of each department. • With this budget, staff has implemented labor costing software to better predict and measure the impact of the 2022 labor agreements. Also, this software allowed us to include costs associated with our part-time labor force that was challenging to measure in the past. We believe the FY25 Budget has provided a better picture of the City’s labor costs.
• Increases in insurance coverage has also impacted salaries and benefits. Each department is absorbing an increase to the City’s General Liability and Workers Comp coverage of 7%.
• In previous years, staff was given guidance to update their budgets to incorporate a low cost of living adjustment for various expenses. Due to the rising costs of fuel, shipping and other services, we recommended that staff take a deeper dive and apply actual rate adjustments to their proposed FY25 budgets. This resulted in some catch up for the costs of supplies and services. We believe the FY25 Budget has provided a better picture of ongoing and routine expenses.
• We recommend the City delay funding pension reserves until mid-year results are projected, except for savings as a result of paying the required Unfunded Liability amount as charged by CalPERS in lump sum instead of monthly payments With these considerations, overall Expenses from the General Fund are expected to total $31,339,000. Therefore, staff recommends the use of available resources as required to meet the established programs and initiatives.
Fund Balance:
The net use of Fund Balance for FY2024/25 is therefore anticipated to be $2,509,000 (difference between revenues and expenditures). As part of the Mid-Year Budget Review, staff identified the ending fund balance for FY2023/24 is expected to be $16,448,000, where a portion is restricted for existing debt, contract commitments, and encumbrances, leaving an unrestricted and available amount of $1,099,000 which we recommend be used in FY2024/25.
Over the past decade the City has built up its reserves to be able to continue to provide necessary services during times of economic stress. The City Council has looked at a threepronged reserve policy:
• Recession Reserve – To be used during times of national economic downturns, set at $2.5 million.
• Emergency Reserve for Unanticipated Events – To be used during times of local events which increases the City’s need to spend or decreases the City’s ability to collect anticipated revenues, set at $3.5 million.
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Overview of Proposed Budget for FY2024/25 Page 5 of 7
• Annual Fluctuation Reserve – To be used for one-time events which either increase expenditures or decreases revenues, set at 5% of Budgeted Revenues plus 5% of Budgeted Expenses.
The City’s reserve policy has resulted in a healthy fund balance and the City fared well through the COVID-19 event, increase in fuel costs, supply-chain shortages, and recent volatile markets.
However, building activity within the City continues to grow and programs have not slowed down. Although historically the City has earned more than projected and spent less than budgeted, Staff recommends tapping into the Annual Fluctuation Reserve to meet the objectives outlined above if necessary.
Based on the recent actual results and budgeted projects, staff anticipates the available reserves as shown below if these reserves are used:
The above projections are based on conservative estimates due to uncertainties in the local, national and global economy and markets.
American Rescue Plan Act (ARPA) – the federal government enacted a federal stimulus bill known as ARPA to aid state and local jurisdictions for economic recovery from the COVID-19 pandemic. The City received a program-to-date total of $1,117,402 and deposited these monies funds into a separate fund until use of the funds could be determined. The City has until 12/31/24 to determine how to use any remaining funds. After issuing small business grants to businesses impacted by COVID, there is a remaining balance of $897,402 as of this date. These funds are reflected as part of Other Revenue in the General Fund FY25 Budget.
The City initially reported its intent to use these funds under the Revenue Replacement category which was a standard allowance for any revenue loss in 2020 and 2021. This allowed a local government to undertake a less restrictive array of potential one-time expenditures including capital improvement projects; funding of infrastructure, including roads; modernization of cybersecurity, including hardware, software and protection of critical infrastructure; provision of police, fire and other public safety services (e.g., purchasing of safety vehicles, other equipment, salaries and fringe benefits of public safety personnel); park improvement projects; purchase of equipment and supplies for local government, improvements to utilities infrastructure and renovating public buildings.
Reserve Actual
6/30/2022
Actual
6/30/2023
Projected
6/30/2024
Projected
6/30/2025
Recession Reserve $164,000 $2,500,000 $2,500,000 $2,500,000 Emergency Reserve $3,500,000 $3,500,000 $3,500,000 $3,500,000 Annual Reserve $2,438,000 $2,834,000 $2,848,000 $300,000 118
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Overview of Proposed Budget for FY2024/25 Page 6 of 7
We recommend the Council consider the following options in using these funds: to replenish the Vehicle Replacement Fund for the additional safety vehicles ordered ahead of schedule due to supply chain concerns; revisit the Capital Improvement Plan for any items deemed critical; cover a portion of the LIRA transfer; or determine a one-time project the Council deems appropriate within the guidelines.
Other Considerations and Budget Threats:
As the City continues to fully financially recover from local economy slowdowns, there are some long-term financial implications to consider:
• A new City Manager is expected to start in June of this year. A change in management and delay in hiring an Assistant City Manager may have unforeseen transitional costs. • PERS rates – in July 2021, CalPERS announced their investment return for FY2020-21 was 21.3% which triggered a reduction in their discount rate from 7% to 6.8%. In November 2021, the CalPERS Board voted to maintain the 6.8% discount rate target for its investment portfolio. This discount rate is the long-term interest rate used to fund future pension benefits. The less earned by the CalPERS investment portfolio, the more the City must cover to fund the pension liability, also known as the unfunded liability. • Pension Trust Fund Reserves – Staff recommended resuming funding the reserves as part of the FY2023/24 Mid-Year review. The goal was to reach $5M which would cover two years’ worth of our unfunded liability payment. With the anticipated growth in our Unfunded Liability payment, staff will recommend this Trust Fund grow accordingly as well. At a minimum any savings from a prepayment of the annual cost versus monthly payments should be considered for transfer to the Pension Trust. Resuming annual funding would be at $500,000 for the next ten years.
• Healthcare, Liability Insurance and Workers’ Compensation costs have been rising in recent years. Any additional increases will need to immediately be implemented. • Staff would like to research available business license tax opportunities for the Life Science segment of the local business community within the coming year.
Any one or combination of these items will continue to have impacts on our ability to begin new programs going forward and add stress to our bottom line.
Financial stability remains a high priority for the City of Brisbane. Staff looks forward to working with the Council and the community to address the financial challenges that lay ahead.
Staff will continue to seek ways as efficiently as possible to provide services to the community.
The City will continue to consider appropriate economic development and tax revenue generation projects that are viable for our City.
Fiscal Impact
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Overview of Proposed Budget for FY2024/25 Page 7 of 7
There are no fiscal implications to receive this report. Recommendations related to the FY2024/25 Budget will be presented at a future City Council meeting.
Measure of Success
Council will accept proposed budget for additional review and consider for approval at future meeting.
Attachments
Attachment 1 Budget Overview Summary
Attachment 2 Proposed Department Expenses
Carolina Yuen ___________________________________
Carolina Yuen, Finance Director Clay Holstine, City Manager 120
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FY22/23 FY23/24 FY24/25
June Adopted Budgeted Revenue 21,816,001 26,695,707 28,639,787 June Adopted Budgeted Expenses, net of transfers 25,013,662 28,599,443 31,339,180 Budgeted Surplus (Use of Fund Balance) (3,197,661) (1,903,736) (2,699,392) Mid-Year Amended Budgeted Revenues 26,244,277 28,891,077 Mid-Year Amended Budgeted Expenses, net of transfers 25,573,882 28,599,443 Amended Surplus (Use of Fund Balance) 670,395 291,634
Actual / Anticipated Revenues 28,562,247 28,891,077 28,639,787 Actual / Anticipated Expenses, net of transfers 28,127,479 28,078,493 31,339,180 Actual / Reprojected Surplus (Use of Fund Balance) 434,768 812,584 (2,699,392) Beginning Fund Balance 15,200,290 15,635,058 16,447,642 Ending Fund Balance 15,635,058 16,447,642 13,748,249
Reserve Policy:
Recession Reserve 2,500,000 2,500,000 2,500,000
Unanticipated Events 3,500,000 3,500,000 3,500,000
Annual Fluctuation (5% Revenues/5% Expenses) 2,834,486 2,848,478 2,998,948 Total Required Reserve 8,834,486 8,848,478 8,998,948
Fund Balance Above Required Balance 6,800,572 7,599,163 4,749,301 Additional Restrictions on Fund Balance 5,810,028 6,500,000 5,500,000 Available Fund Balance 990,544 1,099,163 (750,699)
General Fund
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City of Brisbane
Department Budgets
FY2024/2025
Cost Center Name General Fund Utilities Marina Other TOTAL FY24 Change $$ Change %% 1000 - City Council $ 248,347 $ 307,940 $ (59,593) -19% 2100 - City Manager $ 1,621,099 $ 1,548,140 $ 72,959 5% 2110 - City Clerk $ 474,479 $ 420,306 $ 54,173 13%
2111 - Co-Sponsorships $ 26,894 $ 25,894 $ 1,000 4%
2112 - Open Space $ 526,357 $ 530,663 $ (4,306) -1%
2200 - Finance $ 2,089,225 $ 1,676,968 $ 412,257 25%
2210 - Human Resources $ 942,673 $ 851,613 $ 91,060 11% 2300 - Legal $ 450,000 $ 450,000 $ - 0%
3000 - Community Development $ 2,404,150 $ 2,721,664 $ (317,514) -12% 4101 - Police Administration $ 1,149,551 $ 1,037,697 $ 111,854 11% 4110 - Police Records $ 773,845 $ 841,570 $ (67,725) -8% 4120 - Patrol $ 5,133,378 $ 4,470,024 $ 663,354 15%
4501 - Fire $ 5,196,144 $ 4,914,324 $ 281,820 6%
6001 - Public Works Admin $ 799,509 $ 761,764 $ 37,745 5% 6005 - Streets and Storm Drains $ 1,231,080 $ 1,034,745 $ 196,335 19% 6010 - Building and Grounds $ 445,100 $ 401,220 $ 43,880 11% 6015 - Parks Maintenance $ 275,993 $ 268,732 $ 7,261 3% 6020 - Landscape Maintenance $ 296,509 $ 211,058 $ 85,451 40% 6035 - SPLLD $ 499,373 $ 493,380 $ 5,993 1%
6110 - Water $ 2,342,296 $ 2,264,342 $ 77,954 3%
6115 - Water Quality Monitoring $ 290,310 $ 115,972 $ 174,338 150% 6120 - GVMID $ 2,249,751 $ 2,084,559 $ 165,192 8%
6130 - Sewer $ 2,387,355 $ 2,344,650 $ 42,705 2%
6140 - NPDES $ 461,887 $ 446,581 $ 15,306 3%
6300 - Emergency Operations Center $ 160,419 $ 157,307 $ 3,112 2% 122
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City of Brisbane
Department Budgets
FY2024/2025
Cost Center Name General Fund Utilities Marina Other TOTAL FY24 Change $$ Change %% 7001 - P&R Administration $ 884,024 $ 770,918 $ 113,106 15% 7002 - Recreation Facilities $ 413,758 $ 427,488 $ (13,730) -3% 7003 - Youth $ 938,338 $ 822,886 $ 115,452 14%
7004 - Adult $ 88,612 $ 79,933 $ 8,679 11%
7005 - Seniors $ 160,892 $ 147,167 $ 13,725 9%
7006 - Special Events $ 137,370 $ 128,277 $ 9,093 7%
7007 - Teens $ 105,673 $ 90,676 $ 14,997 17%
7008 - Aquatics $ 725,976 $ 601,915 $ 124,061 21%
7009 - Marina $ 1,552,886 $ 1,379,195 $ 173,691 13%
7100 - Library $ 101,300 $ 70,600 $ 30,700 43%
8001 - Central Services Administration $ 1,390,880 $ 1,273,291 $ 117,589 9% 8900 - SA Administration $ 32,010 $ 30,452 $ 1,558 5%
9015 - Debt Service $ 1,301,883 $ 1,209,663 $ 92,220 8% Grand Total $ 30,992,830 $ 7,269,712 $ 1,552,886 $ 493,897 $ 40,309,324 $ 37,413,574 $ 2,895,750 8% Transfers
LIRA at 25% 46,350 $ 46,350
Vehicle Replacement 300,000 $ 65,000 $ 17,000 $ 382,000 Indirect Costs $ 1,567,823 $ 380,769 $ 310,343 $ 2,258,936 Admin Fee $ 180,000 $ 180,000
Total Outlay 31,339,180 $ 8,902,535 $ 2,130,656 $ 804,240 $ 43,176,610 123
C.
Department Background
Department/Division: 1000 City Council
Mission Statement –
Overall Budget
Number of Positions 5 Council Members; 1 Part-time
Areas Covered City Policy, Special Events, History Project The City Council serves as the public policy-making body for the community. Five representatives are elected by the citizenry to set goals, establish priorities, enact laws, and make budgetary and other decisions on behalf of the community. $248,347
124
C.
General Fund
Fund 100
Department/Division: 1000 City Council
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 205,140 193,647 (11,493) -6%
Total Salaries & Benefits 205,140 193,647 (11,493) -6%
SERVICES AND SUPPLIES
52001 Safety Clothing - - -
52005 Communications - 1,800 1,800
52010 Equipment Maintenance - - -
52015 Maint. Structures/Improvement.Grounds - - -
52020 Memberships - - -
52025 Office Expense 6,400 6,400 - 0%
52030 Professional Services 35,000 2,500 (32,500) -93%
52035 Equipment Rental - - -
52045 Special Department Expense 47,700 30,300 (17,400) -36% 52050 Small Tools & Supplies - - -
52055 Travel & Training 13,700 13,700 - 0%
52060 Utilities - - -
Total Services & Supplies 102,800 54,700 (48,100) -47%
OTHER
53010 Improvements - -
53030 Equipment - -
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other - - -
TOTAL BUDGET $ 307,940 $ 248,347 $ (59,593) -19%
125
C.
City of Brisbane
FY25 Budget Requests
Department/Division: 1000 City Council
Request Description FY25 request Purpose
Communications: Monthly plans for iPads
and city-issued cell phones
1,800 Moved from Central Services
Professional Services: Goal & Priority
Setting
2,500
Special Dept Exp: Chamber Mixer Host 100 cost increase
Special Dept Exp: Brisbane History Project 15,000 Replaced Oral History Project Notable Reductions: (50,000) City Manager Recruitment $35K; One time projects $15K
(30,600)
126
C.
Department Background
Department/Division: 2100 City Manager
Mission Statement –
Overall Budget
Number of Positions 6 - Full time
Areas Covered
It is the mission of the City Manager's Department to provide leadership and administrative direction for the implementation of the policies and the accomplishment of the objectives set forth by the City Council. We will recruit and retain quality employees, and maintain and provide informational services to citizens and departments in a timely and effective manner.
$1,621,099
City Administration, Communications,
Economic Development, Risk
Management
127
C.
General Fund
Fund 100
Department/Division: 2100 City Manager
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 1,438,070 1,501,029 62,959 4%
Total Salaries & Benefits 1,438,070 1,501,029 62,959 4%
SERVICES AND SUPPLIES
52001 Safety Clothing Professional Services - Economic Development Contract - #VALUE! contract increase 52005 Communications - 3,600 3,600
52010 Equipment Maintenance Professional Services - City Manager Evaluation services - #VALUE! 52015 Maint. Structures/Improvement.Grounds - - -
52020 Memberships 3,460 3,460 - 0%
52025 Office Expense 4,000 4,000 - 0%
52030 Professional Services 62,500 70,000 7,500 12%
52035 Equipment Rental - - -
52045 Special Department Expense 36,000 26,000 (10,000) -28% 52046 Marketinmg Expenses - 2,000 2,000
52050 Small Tools & Supplies - - -
52055 Travel & Training 4,010 11,010 7,000 175%
52060 Utilities -
Total Services & Supplies 109,970 120,070 10,100 9%
OTHER
53010 Improvements - -
53030 Equipment - -
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other - - -
TOTAL BUDGET $ 1,548,040 $ 1,621,099 $ 73,059 5%
128
C.
City of Brisbane
FY25 Budget Requests
Department/Division: 2100 City Manager
Request Description FY25 cost Purpose
Communications - Plans for cell phones, iPads,
and SIM Cards
3,600.00 moved from Central Services
Professional Services - Economic Development
Contract
10,000.00 contract increase
Professional Services - City Manager Evaluation
services
2,500.00
Marketing Expenses - for Betsy (mostly Printify
costs for producing ordered items)
2,000.00 new program
Travel and Training - local meetings & conferences 5,000.00 cost increase to travel and training costs
Travel and Training - City Manager 2,000.00 additional Training for New City Manager
25,100
129
C.
Department Background
Department/Division: 2110 City Clerk
Mission Statement –
Overall Budget
Number of Positions Full Time; 1 Part-time 1
Areas Covered
It is the mission of the City Clerk’s Office to help engage the community in local government and promote openness in government by processing and recording City Council actions, coordinating municipal government elections, and managing all official records of the Council promptly and efficiently. $474,479
Council Support, Agenda Administration, Records
Management
130
C.
General Fund
Fund 100
Department/Division: 2110 City Clerk
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 344,181 383,354 39,173 11%
Total Salaries & Benefits 344,181 383,354 39,173 11%
SERVICES AND SUPPLIES
52001 Safety Clothing - - -
52005 Communications - - -
52010 Equipment Maintenance 225 225 - 0%
52015 Maint. Structures/Improvement.Grounds - - -
52020 Memberships 1,100 1,100 - 0%
52025 Office Expense 12,900 12,900 - 0%
52030 Professional Services - - -
52035 Equipment Rental - - -
52045 Special Department Expense 51,300 66,300 15,000 29% 52050 Small Tools & Supplies - - -
52055 Travel & Training 10,600 10,600 - 0%
52060 Utilities - - -
Total Services & Supplies 76,125 91,125 15,000 20%
OTHER
53010 Improvements - -
53030 Equipment - -
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other - - -
TOTAL BUDGET $ 420,306 $ 474,479 $ 54,173 13%
131
C.
City of Brisbane
FY25 Budget Requests
Department/Division: 2110 City Clerk
Request Description FY25 request Purpose
Special Department Expense: Data
Management System
15,000 Election year
15,000
132
C.
General Fund
Fund 100
Department/Division: 2111 Co-Sponsorships
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS - - -
Total Salaries & Benefits - - -
SERVICES AND SUPPLIES
52001 Safety Clothing - - -
52005 Communications - - -
52010 Equipment Maintenance - - -
52015 Maint. Structures/Improvement.Grounds - - -
52020 Memberships - - -
52025 Office Expense - - -
52030 Professional Services 17,571 17,571 - 0%
52035 Equipment Rental - - -
52045 Special Department Expense 8,323 9,323 1,000 12%
52050 Small Tools & Supplies - - -
52055 Travel & Training - - -
52060 Utilities - - -
52900 Contributions - - -
Total Services & Supplies 25,894 26,894 1,000
OTHER
53010 Improvements - -
53030 Equipment - -
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other - - -
TOTAL BUDGET $ 25,894 $ 26,894 $ 1,000
133
C.
General Fund
Fund 100
Department/Division: 2112 Open Space
2023/24
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 321,413 318,857 (2,556) -1%
Total Salaries & Benefits 321,413 318,857 (2,556) -1%
SERVICES AND SUPPLIES
52001 Safety Clothing - - 0%
52005 Communications - - 0%
52010 Equipment Maintenance - 0%
52015 Maint. Structures/Improvement.Grounds - - 0%
52020 Memberships 5,250 6,000 750 14%
52025 Office Expense 500 14,500 14,000 2800%
52030 Professional Services 40,000 115,000 75,000 188%
52035 Equipment Rental - - 0%
52045 Special Department Expense 154,500 63,000 (91,500) -59% 52050 Small Tools & Supplies - - 0%
52055 Travel & Training 2,500 2,500 - 0%
52060 Utilities 6,500 6,500 - 0%
Total Services & Supplies 209,250 207,500 (1,750) -1%
OTHER
53010 Improvements - - 0%
53030 Equipment - - 0%
54010 Administrative Charges - - 0%
54025 Indirect Costs - - 0%
55961 Transfers to Other Funds - - 0%
Total Other - - - 0%
TOTAL BUDGET 530,663 526,357 (4,306) -1%
2024/25
Requested
Budget
134
C.
Department Background
Department/Division: 2200 Finance
Mission Statement –
Overall Budget
Number of Positions 8 Full Time
Areas Covered
Finance delivers reliable financial and information technology services. We are responsible for facilitating the planning, organization, implementation, control, coordination, and direction of the financial and technological policies and programs of the City, as established by City Council and the City Manager. $2,089,225
Accounting, Financial Management, Budget, Audit,
Cashiering, Billing, Payables, Payroll, Treasury
Management, Business Licenses, Information Services, Risk Management
135
C.
General Fund
Fund 100
Department/Division: 2200 Finance
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 1,427,383 1,781,535 354,152 25%
Total Salaries & Benefits 1,427,383 1,781,535 354,152 25%
SERVICES AND SUPPLIES
52001 Safety Clothing - - -
52005 Communications 2,800 - (2,800) -100%
52010 Equipment Maintenance - - -
52015 Maint. Structures/Improvement.Grounds - - -
52020 Memberships 1,640 2,060 420 26%
52025 Office Expense 9,300 4,500 (4,800) -52%
52030 Professional Services 188,880 273,236 84,356 45%
52035 Equipment Rental - - -
52045 Special Department Expense 17,675 - (17,675) -100% 52050 Small Tools & Supplies - - -
52055 Travel & Training 29,290 27,894 (1,396) -5%
52060 Utilities - - -
Total Services & Supplies 249,585 307,690 58,105 23%
OTHER
53010 Improvements - -
53030 Equipment - -
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other - - -
TOTAL BUDGET $ 1,676,968 $ 2,089,225 $ 412,257 25%
136
C.
City of Brisbane
FY25 Budget Requests
Department/Division: 2200 Finance
Request Description FY25 request Purpose
Staffing: Info Tech Administrator 156,310 city-wide projects andsuccession planning
Non Personnel Related Requests:
Memberships 430 cost increase
Prof. Svcs: Artificial Intelligence (AI) 5,000 improving effeciency Prof. Svcs: misc audit prep services 8,250 cost increase Prof. Svcs: Forecasting and labor costing software 10,000 cost increase Prof. Svcs: Tax reporting service 1,070 costs increase
Prof. Svcs: Master Fee Study 55,000 one time cost
Prof. Svcs: Single Audit 2,000 required for federal funding Prof. Svcs: Software maintenance for Tyler financial
software
5,250 cost increase
Total Non Personnel related requests 87,000
137
C.
Department Background
Department/Division: 2210 Human Resources
Mission Statement –
Overall Budget
Number of Positions 3 full-time, 1 part-time
Areas Covered Human Resources
The City of Brisbane prides itself on being an employee-oriented organization, which emphasizes our desire to “provide for today and prepare for tomorrow.” As we continue to serve current and future generations, we aim to use the city’s mission statement as a guide for our human resources-related processes. As the Human Resources team, we are committed to providing excellent customer service and supporting the needs of our staff and community. We will uphold our unified commitment to serving others and ensure that our employees, $942,673
138
C.
General Fund
Fund 100
Department/Division: 2210 Human Resources
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 732,273 817,233 84,960 12%
Total Salaries & Benefits 732,273 817,233 84,960 12%
SERVICES AND SUPPLIES
52001 Safety Clothing - - -
52005 Communications - - -
52010 Equipment Maintenance - - -
52015 Maint. Structures/Improvement.Grounds - - -
52020 Memberships 1,440 1,540 100 7%
52025 Office Expense 4,200 4,200 - 0%
52030 Professional Services 79,000 85,000 6,000 8%
52035 Equipment Rental - - -
52045 Special Department Expense 8,500 8,500 - 0%
52050 Small Tools & Supplies - - -
52055 Travel & Training 26,200 26,200 - 0%
52060 Utilities - - -
Total Services & Supplies 119,340 125,440 6,100 5%
OTHER
53010 Improvements - -
53030 Equipment - -
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other - - -
TOTAL BUDGET $ 851,613 $ 942,673 $ 91,060 11%
139
C.
City of Brisbane
FY25 Budget Requests
Department/Division: 2210 Human Resources
Request Description FY25 request Purpose
Memberships: miscellaneous 100 rate increases
Professional Services: Affordable Care
Act/Benefits review
500 rate increases
Professional Services: Calopps 500 rate increases
Professional Services: Labor legal costs 5,000 rate increases 6,100
Staff Report Dept FY25 HR prelim.xlsx
140
C.
General Fund
Fund 100
Department/Division: 2300 Legal
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS - - -
Total Salaries & Benefits - - -
SERVICES AND SUPPLIES
52001 Safety Clothing - - -
52005 Communications - - -
52010 Equipment Maintenance - - -
52015 Maint. Structures/Improvement.Grounds - - -
52020 Memberships - - -
52025 Office Expense - - -
52030 Professional Services 450,000 450,000 - 0%
52035 Equipment Rental - - -
52045 Special Department Expense - - -
52050 Small Tools & Supplies - - -
52055 Travel & Training - - -
52060 Utilities - - -
52300 Contributions - - -
Total Services & Supplies 450,000 450,000 - 0%
OTHER
53010 Improvements - -
53030 Equipment - -
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other - - -
TOTAL BUDGET $ 450,000 $ 450,000 $ - 0%
141
C.
Department Background
Department/Division: 3000 Community Development
Mission Statement –
Overall Budget
Number of Positions 7 Full-time
Areas Covered Planning Services, Building Development, Housing $2,404,150
The Department of Community Development is committed to assist the Citizens of Brisbane, the Planning Commission and the City Council to develop and maintain community goals in regard to quality of life and the built environment by applying its professional and technical skills to the analysis of complex issues and by overseeing private and public development projects. 142
C.
General Fund
Fund 100
Department/Division: 3000 Community Development
2023/24 2024/25
Requested
Account and Title: Budget Budget Change $$ Change %%
SALARIES & BENEFITS 1,572,524 1,742,142 169,618 11%
Total Salaries & Benefits 1,572,524 1,742,142 169,618 11%
SERVICES AND SUPPLIES
52001 Safety Clothing - - -
52005 Communications - - -
52010 Equipment Maintenance 1,540 4,140 2,600 169%
52015 Maint. Structures/Improvement.Grounds - - -
52020 Memberships - 2,128 2,128
52025 Office Expense 5,560 6,600 1,040 19%
52030 Professional Services 1,115,880 622,980 (492,900) -44% 52035 Equipment Rental - - -
52045 Special Department Expense 4,160 4,160 - 0%
52050 Small Tools & Supplies - - -
52055 Travel & Training 22,000 22,000 - 0%
52060 Utilities - - -
Total Services & Supplies 1,149,140 662,008 (487,132) -42% OTHER
53010 Improvements - -
53030 Equipment - -
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other - - -
TOTAL BUDGET $ 2,721,664 $ 2,404,150 $ (317,514) -12%
143
C.
City of Brisbane
FY25 Budget Requests
Department/Division: 3000 Community Development
Request Description FY25 requests Purpose
Equipment Maint: Bluebeam licenses and
Bluebeam Studio Prime
3,640
Memberships: 21 Elements, APA, ICC 2,128
Office Exp: Office supplies 1,040
Prof Svcs: ADU Resource Center 29,000 Housing Element Compliance Prof Svcs: Granicus 1,500 Contract increase
Prof Svcs: Housing Consultant 39,000 Adminster Housing Programs Prof Svcs: Web hosting of electronic
building records
1,200
77,508
Notable reduction: (520,000) Net of one-time costs for Land Permitting System implementation in
FY24
Staff Report Dept FY25 CD prelim_JS.xlsx
144
C.
Department Background
Department/Division: Police
Mission Statement –
Overall Budget
Number of Positions 20 Full-time
Areas Covered
It is the mission of the men and women of the Brisbane Police Department, working in Partnership with the Community, to provide highly effective and responsive police services, which protect individual rights, respect community values, and enhance professional ethics. We welcome the challenge to meet the present demands and prepare for the future while preserving the unique environment of the community we serve.
$7,056,774
Patrol, Investigative Services, Traffic Enforcement, Parking Enforcement, Records Management, Code Enforcement
Administration
16%
Records
11%
Patrol
73%
145
C.
General Fund
Fund 100
Department/Division: 4101 Police Administration
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 1,017,523 1,125,154 107,631 11%
Total Salaries & Benefits 1,017,523 1,125,154 107,631 11%
SERVICES AND SUPPLIES
52001 Safety Clothing - - -
52005 Communications - - -
52010 Equipment Maintenance 320 320 - 0%
52015 Maint. Structures/Improvement.Grounds - - -
52020 Memberships 1,530 2,937 1,407 92%
52025 Office Expense 944 1,090 146 15%
52030 Professional Services - - -
52035 Equipment Rental - - -
52045 Special Department Expense - - -
52050 Small Tools & Supplies 320 320 - 0%
52055 Travel & Training 3,610 4,730 1,120 31%
52060 Utilities - - -
Total Services & Supplies 6,724 9,397 2,673 40%
OTHER
53010 Improvements - -
53030 Equipment 13,450 15,000 1,550 12%
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other 13,450 15,000 1,550 12%
TOTAL BUDGET $ 1,037,697 $ 1,149,551 $ 111,854 11%
146
C.
General Fund
Fund 100
Department/Division: 4110 Police Records
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 333,397 349,211 15,814 5%
Total Salaries & Benefits 333,397 349,211 15,814 5%
SERVICES AND SUPPLIES
52001 Safety Clothing - - -
52005 Communications 27,120 47,070 19,950 74%
52010 Equipment Maintenance 2,238 2,388 150 7%
52015 Maint. Structures/Improvement.Grounds - - -
52020 Memberships 260 260 - 0%
52025 Office Expense 2,550 2,550 - 0%
52030 Professional Services 323,165 360,806 37,641 12%
52035 Equipment Rental - - -
52045 Special Department Expense - - -
52050 Small Tools & Supplies - - -
52055 Travel & Training 7,840 11,560 3,720 47%
52060 Utilities - - -
Total Services & Supplies 363,173 424,634 61,461 17%
OTHER
53010 Improvements - -
53030 Equipment 145,000 - (145,000) -100%
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other 145,000 - (145,000) -100%
TOTAL BUDGET $ 841,570 $ 773,845 $ (67,725) -8%
147
C.
General Fund
Fund 100
Department/Division: 4120 Patrol
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 3,781,814 4,670,653 888,839 24%
Total Salaries & Benefits 3,781,814 4,670,653 888,839 24%
SERVICES AND SUPPLIES
52001 Safety Clothing 21,650 22,075 425 2%
52005 Communications - - -
52010 Equipment Maintenance 77,890 101,590 23,700 30%
52015 Maint. Structures/Improvement.Grounds - - -
52020 Memberships 570 1,260 690 121%
52025 Office Expense 3,890 3,890 - 0%
52030 Professional Services 131,730 142,230 10,500 8%
52035 Equipment Rental 27,500 45,800 18,300 67%
52045 Special Department Expense 296,620 60,320 (236,300) -80% 52050 Small Tools & Supplies 520 520 - 0%
52055 Travel & Training 25,740 25,740 - 0%
52060 Utilities - - -
Total Services & Supplies 586,110 403,425 (182,685) -31% OTHER
53010 Improvements - -
53030 Equipment 102,100 59,300 (42,800) -42%
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other 102,100 59,300 (42,800) -42%
TOTAL BUDGET $ 4,470,024 $ 5,133,378 $ 663,354 15%
148
C.
City of Brisbane
FY25 Budget Requests
Department/Division: Police
Request Description FY25 requests Purpose
Admin:
Memberships: miscellaneous 1,407 Rate increase
Misc Training 1,120 Cost Increase
Equipment: Server upgrade 1,550
Total Admin $4,077
Records:
Communications: Smart phones/laptop lines &
cable services
19,950 Cost Increase and updated to actual
Equipment Maint: Certified shredding of police
records
150 Cost Increase
Professional Services: City of SM Records,
Dispatch
18,050 Cost Increase
Professional Services: IT Maintenance Contract 34,732 Cost Increase Misc training 3,720 Cost Increase
Total Records 76,602
Notable reductions: Equipment (145,000) Encryption upgrade one-time cost in FY24 Patrol:
Safety Clothing: Uniform cleaning 425 Cost Increase
Misc Equipment Maintenance incl. fuel 23,700 Cost Increase Memberships: miscellaneous 690 Rate increase
Prof. Svcs: Crime Prevention Community
Outreach
2,460 new program
Prof. Svcs: Specialized Health & wellness
counseling for PD personnel - Better Help
2,000 Cost Increase
Prof. Svcs: Recurring subscriptions 6,040 Cost Increase Equipment rental: Flock ALPR annual cost 7,500 Rate increase Equipment rental: Turbo Data citation
Processing & equipment
10,800 Cost Increase
Misc Canine costs 13,700 Now full year program
Total Patrol 67,315
149
C.
Department Background
Department/Division: 4501 Fire
Mission Statement –
Overall Budget
Number of Positions 16 Full-time (analyst, fire marshall, 14 shift personnel) Areas Covered
Be Kind. Always prepared. Care for others.
$5,196,144
Fire Response, Medical Response, Fire Code Compliance,
Administration, Personnel Training, Public Education and Community Outreach
150
C.
General Fund
Fund 100
Department/Division: 4501 Fire
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 3,541,557 4,098,653 557,096 16%
Total Salaries & Benefits 3,541,557 4,098,653 557,096 16%
SERVICES AND SUPPLIES
52001 Safety Clothing 21,790 21,790 - 0%
52005 Communications 37,670 48,640 10,970 29%
52010 Equipment Maintenance 117,350 117,350 - 0%
52015 Maint. Structures/Improvement.Grounds 39,750 39,750 - 0% 52020 Memberships 1,900 1,900 - 0%
52025 Office Expense 7,650 7,650 - 0%
52030 Professional Services 501,400 555,154 53,754 11%
52035 Equipment Rental - - -
52045 Special Department Expense 564,677 214,677 (350,000) -62% 52050 Small Tools & Supplies 5,150 5,150 - 0%
52055 Travel & Training 18,000 18,000 - 0%
52060 Utilities 17,430 17,430 - 0%
Total Services & Supplies 1,332,767 1,047,491 (285,276) -21% OTHER
53010 Improvements - -
53030 Equipment - - -
53040 Sinking Fund Equipment 40,000 50,000 10,000 25%
54010 Administrative Charges - - -
54025 Indirect Costs - - -
55961 Transfers to Other Funds - - -
Total Other 40,000 50,000 10,000 25%
TOTAL BUDGET 4,914,324 5,196,144 $ 281,820 6%
151
C.
City of Brisbane
FY25 Budget Requests
Department/Division: 4501 Fire
Request Description FY25 Request Purpose
Communications: Data management
system (ER, First Due)
5,650 Increase
Communications: Technical support 1,000 Replacing SMC paging services Communications: Station alerting web
based system
4,320
Prof. Svcs: North County JPA 53,754 Rate increase
Sinking Fund Repl: Annualized cost of FD
equipment which is placed on an
infrequent basis
10,000 planning for increased costs
74,724
Notable change:
$350,000 moved from Special Department Expense to Salary & Benefits Staff Report Dept FY25 Fire prelim.xlsx
152
C.
Department Background
Department/Division: Public Works & Utilities
Mission Statement –
Overall Budget
Number of Positions 22 Full-time, 1 Part-time
Areas Covered
$11,965,939
Mission Statement - To provide overall management of the Engineering and Operations & Maintenance Divisions, and the implemenatation of department objectives to sustain and enhance the quality of life within the City of Brisbane by providing safe, well-maintained public infrastructure and facilities.
Building and Grounds Maintenance, Landscape Maintenance, Sustainability, Emergency Operations Center, Water Service, Wastewater Service, Street & Storm Drain Maintenance,
NPDES, GVMID
PW
Administration
7% Sustainability
4%
Streets &
Storms
10%
Building &
Grounds
4% Parks
Maintenance
2% Landscape
Maintenance
3%
SPLLD
4%
Water Service
20%
Water Quality
2%
GVMID
19%
Wastewater
Service
20%
NPDES
4%
Emergency
Operations
1%
153
C.
General Fund
Fund 100
Department/Division: 2112 Open Space
2023/24
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 321,413 318,857 (2,556) -1%
Total Salaries & Benefits 321,413 318,857 (2,556) -1%
SERVICES AND SUPPLIES
52001 Safety Clothing - - 0%
52005 Communications - - 0%
52010 Equipment Maintenance - 0%
52015 Maint. Structures/Improvement.Grounds - - 0%
52020 Memberships 5,250 6,000 750 14%
52025 Office Expense 500 14,500 14,000 2800%
52030 Professional Services 40,000 115,000 75,000 188%
52035 Equipment Rental - - 0%
52045 Special Department Expense 154,500 63,000 (91,500) -59% 52050 Small Tools & Supplies - - 0%
52055 Travel & Training 2,500 2,500 - 0%
52060 Utilities 6,500 6,500 - 0%
Total Services & Supplies 209,250 207,500 (1,750) -1%
OTHER
53010 Improvements - - 0%
53030 Equipment - - 0%
54010 Administrative Charges - - 0%
54025 Indirect Costs - - 0%
55961 Transfers to Other Funds - - 0%
Total Other - - - 0%
TOTAL BUDGET 530,663 526,357 (4,306) -1%
2024/25
Requested
Budget
154
C.
General Fund
Fund 100
Department/Division: 6001 Public Works Administration
2023/24
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 732,149 756,634 24,485 3%
Total Salaries & Benefits 732,149 756,634 24,485 3%
SERVICES AND SUPPLIES
52001 Safety Clothing 500 800 300 60%
52005 Communications 1,600 2,600 1,000 63%
52010 Equipment Maintenance 4,425 4,425 - 0%
52015 Maint. Structures/Improvement.Grounds - - 0%
52020 Memberships 940 1,000 60 6%
52025 Office Expense 6,900 6,900 - 0%
52030 Professional Services 5,000 5,400 400 8%
52035 Equipment Rental 3,500 3,500 - 0%
52045 Special Department Expense 2,900 12,400 9,500 328% 52050 Small Tools & Supplies - 0%
52055 Travel & Training 3,850 5,850 2,000 52%
52060 Utilities - 0%
Total Services & Supplies 29,615 42,875 13,260 45%
OTHER
53010 Improvements - - 0%
53030 Equipment - - 0%
54010 Administrative Charges - - 0%
54025 Indirect Costs - - 0%
55961 Transfers to Other Funds - - 0%
Total Other - - - 0%
TOTAL BUDGET 761,764 799,509 37,745 5%
2024/25
Requested
Budget
155
C.
General Fund
Fund 100
Department/Division: 6005 Streets & Storms
2023/24 2024/25
Requested
Account and Title: Budget Budget Change $$ Change %%
SALARIES & BENEFITS 533,095 645,130 112,035 21%
Total Salaries & Benefits 533,095 645,130 112,035 21%
SERVICES AND SUPPLIES
52001 Safety Clothing 800 800 - 0%
52005 Communications 1,650 1,650 - 0%
52010 Equipment Maintenance 7,100 7,100 - 0%
52015 Maint. Structures/Improvement.Grounds 104,900 115,200 10,300 10% 52020 Memberships 620 620 - 0%
52025 Office Expense 1,280 1,280 - 0%
52030 Professional Services 160,200 154,200 (6,000) -4% 52035 Equipment Rental 1,200 1,200 - 0%
52045 Special Department Expense 222,400 222,400 - 0%
52050 Small Tools & Supplies 300 300 - 0%
52055 Travel & Training 1,200 1,200 - 0%
52060 Utilities 80,000 80,000 0%
Total Services & Supplies 501,650 585,950 84,300 17%
OTHER
53010 Improvements - - 0%
53030 Equipment - - 0%
54010 Administrative Charges - - 0%
54025 Indirect Costs - - 0%
55961 Transfers to Other Funds - - 0%
Total Other - - - 0%
TOTAL BUDGET 1,034,745 1,231,080 196,335 19%
156
C.
General Fund
Fund 100
Department/Division: 6010 Building & Grounds
2023/24 2024/25
Requested
Account and Title: Budget Budget Change $$ Change %%
SALARIES & BENEFITS 226,570 294,150 67,580 30%
Total Salaries & Benefits 226,570 294,150 67,580 30%
SERVICES AND SUPPLIES
52001 Safety Clothing 1,800 1,800 - 0%
52005 Communications 2,750 2,750 - 0%
52010 Equipment Maintenance 10,500 10,500 - 0%
52015 Maint. Structures/Improvement.Grounds 57,900 56,800 (1,100) -2% 52020 Memberships - - 0%
52025 Office Expense 200 200 - 0%
52030 Professional Services 84,400 76,800 (7,600) -9%
52035 Equipment Rental - - - 0%
52045 Special Department Expense 15,000 - (15,000) -100% 52050 Small Tools & Supplies 2,100 2,100 - 0%
52055 Travel & Training - - - 0%
52060 Utilities - - - 0%
Total Services & Supplies 174,650 150,950 (23,700) -14% OTHER
53010 Improvements - - 0%
53030 Equipment - - 0%
54010 Administrative Charges - - 0%
54025 Indirect Costs - - 0%
55961 Transfers to Other Funds - - 0%
Total Other - - - 0%
TOTAL BUDGET 401,220 445,100 43,880 11%
157
C.
General Fund
Fund 100
Department/Division: 6015 Parks Maintenance
2023/24 2024/25
Requested
Account and Title: Budget Budget Change $$ Change %%
SALARIES & BENEFITS 198,975 182,235 (16,740) -8%
Total Salaries & Benefits 198,975 182,235 (16,740) -8%
SERVICES AND SUPPLIES
52001 Safety Clothing 1,450 1,450 - 0%
52005 Communications 1,500 1,500 - 0%
52010 Equipment Maintenance 4,300 4,300 - 0%
52015 Maint. Structures/Improvement.Grounds 27,660 24,160 (3,500) -13% 52020 Memberships 200 200 - 0%
52025 Office Expense - - 0%
52030 Professional Services 9,900 10,900 1,000 10%
52035 Equipment Rental 3,499 7,000 3,501 100%
52045 Special Department Expense 18,000 41,000 23,000 128% 52050 Small Tools & Supplies 3,040 3,248 208 7%
52055 Travel & Training 208 (208) -100%
52060 Utilities - - 0%
Total Services & Supplies 69,757 93,758 24,001 34%
OTHER
53010 Improvements - - 0%
53030 Equipment - - 0%
54010 Administrative Charges - - 0%
54025 Indirect Costs - - 0%
55961 Transfers to Other Funds - - 0%
Total Other - - - 0%
TOTAL BUDGET 268,732 275,993 7,261 3%
158
C.
General Fund
Fund 100
Department/Division: 6020 Landscape Maintenance
2023/24 2024/25
Requested
Account and Title: Budget Budget Change $$ Change %%
SALARIES & BENEFITS 50,008 95,459 45,451 91%
Total Salaries & Benefits 50,008 95,459 45,451 91%
SERVICES AND SUPPLIES
52001 Safety Clothing 350 350 - 0%
52005 Communications 250 250 - 0%
52010 Equipment Maintenance 3,100 3,100 - 0%
52015 Maint. Structures/Improvement.Grounds 10,400 10,400 - 0% 52020 Memberships 300 300 - 0%
52025 Office Expense - 0%
52030 Professional Services 144,400 144,400 - 0%
52035 Equipment Rental 1,000 1,000 - 0%
52045 Special Department Expense - - - 0%
52050 Small Tools & Supplies 1,000 1,000 - 0%
52055 Travel & Training 250 250 - 0%
52060 Utilities 40,000 40,000 0%
Total Services & Supplies 161,050 201,050 40,000 25%
OTHER
53010 Improvements - - 0%
53030 Equipment - - 0%
54010 Administrative Charges - - 0%
54025 Indirect Costs - - 0%
55961 Transfers to Other Funds - - 0%
Total Other - - - 0%
TOTAL BUDGET 211,058 296,509 85,451 40%
159
C.
Sierra Point Light & Landscape District Fund
Fund 210
Department/Division: 6035 Sierra Point Light & Landscape District 2023/24 2024/25
Requested
Account and Title: Budget Budget Change $$ Change %%
SALARIES & BENEFITS 116,230 122,223 5,993 5%
Total Salaries & Benefits 116,230 122,223 5,993 5%
SERVICES AND SUPPLIES
52001 Safety Clothing 330 330 - 0%
52005 Communications 300 300 - 0%
52010 Equipment Maintenance 1,500 1,500 - 0%
52015 Maint. Structures/Improvement.Grounds 76,000 76,000 - 0% 52020 Memberships 200 200 - 0%
52025 Office Expense 251 251 - 0%
52030 Professional Services 138,000 128,000 (10,000) -7% 52035 Equipment Rental - - 0%
52045 Special Department Expense 80,269 90,269 10,000 12% 52050 Small Tools & Supplies 200 200 - 0%
52055 Travel & Training 100 100 - 0%
52060 Utilities 80,000 80,000 - 0%
Total Services & Supplies 377,150 377,150 - 0%
OTHER
53010 Improvements - - 0%
53030 Equipment - - 0%
54010 Administrative Charges - - 0%
54025 Indirect Costs 174,547 (174,547) -100%
55961 Transfers to Other Funds - - 0%
Total Other 174,547 - (174,547) -100%
TOTAL BUDGET 667,927 499,373 (168,554) -25%
160
C.
Utilities Fund
Fund 540
Department/Division: 6110 Water
2023/24 2024/25
Requested
Account and Title: Budget Budget Change $$ Change %%
SALARIES & BENEFITS 876,484 729,496 (146,988) -17%
Total Salaries & Benefits 876,484 729,496 (146,988) -17%
SERVICES AND SUPPLIES
52001 Safety Clothing 2,550 2,550 - 0%
52005 Communications 4,450 4,450 - 0%
52010 Equipment Maintenance 11,400 24,100 12,700 111%
52015 Maint. Structures/Improvement.Grounds 63,563 63,563 - 0% 52020 Memberships 53,443 53,195 (248) 0%
52025 Office Expense 20,704 20,704 - 0%
52030 Professional Services 210,620 167,710 (42,910) -20% 52035 Equipment Rental - - 0%
52045 Special Department Expense 71,500 145,000 73,500 103% 52050 Small Tools & Supplies 7,387 7,387 - 0%
52055 Travel & Training 3,241 7,141 3,900 120%
52060 Utilities 22,000 22,000 - 0%
52065 Water Purchases 917,000 1,095,000 178,000 19%
Total Services & Supplies 1,387,858 1,612,800 224,942 16% OTHER
53010 Improvements - - 0%
53030 Equipment - - 0%
54010 Administrative Charges - - 0%
54025 Indirect Costs 556,871 - -100%
55961 Transfers to Other Funds 20,096 - -100%
Total Other 576,967 - - -100%
TOTAL BUDGET 3,418,276 2,342,296 77,954 -31%
161
C.
Utilities Fund
Fund 540
Department/Division: 6115 Water Quality Monitoring
2023/24 2024/25
Requested
Account and Title: Budget Budget Change $$ Change %%
SALARIES & BENEFITS 55,972 33,310 (22,662) -40%
Total Salaries & Benefits 55,972 33,310 (22,662) -40%
SERVICES AND SUPPLIES
52001 Safety Clothing - - 0%
52005 Communications - - 0%
52010 Equipment Maintenance - - 0%
52015 Maint. Structures/Improvement.Grounds - - 0%
52020 Memberships - - 0%
52025 Office Expense - - 0%
52030 Professional Services 60,000 257,000 197,000 328% 52035 Equipment Rental - - 0%
52045 Special Department Expense - - 0%
52050 Small Tools & Supplies - - 0%
52055 Travel & Training - - 0%
52060 Utilities - - 0%
52065 Water Purchases - - 0%
Total Services & Supplies 60,000 257,000 197,000 328%
OTHER
53010 Improvements - - 0%
53030 Equipment - - 0%
54010 Administrative Charges - - 0%
54025 Indirect Costs - - 0%
55961 Transfers to Other Funds - - 0%
Total Other - - - -
TOTAL BUDGET 115,972 290,310 174,338 150%
162
C.
Utilities Fund
Fund 540
Department/Division: 6120 GVMID
2023/24 2024/25
Requested
Account and Title: Budget Budget Change $$ Change %%
SALARIES & BENEFITS 675,383 727,725 52,342 8%
Total Salaries & Benefits 675,383 727,725 52,342 8%
SERVICES AND SUPPLIES
52001 Safety Clothing 2,550 2,550 - 0%
52005 Communications 3,450 3,450 - 0%
52010 Equipment Maintenance 12,000 12,000 - 0%
52015 Maint. Structures/Improvement.Grounds 62,382 57,382 (5,000) -8% 52020 Memberships 36,577 37,577 1,000 3%
52025 Office Expense 23,929 23,929 - 0%
52030 Professional Services 141,138 167,138 26,000 18%
52035 Equipment Rental - - 0%
52045 Special Department Expense 60,000 85,000 25,000 42% 52050 Small Tools & Supplies 2,809 2,809 - 0%
52055 Travel & Training 3,341 7,241 3,900 117%
52060 Utilities 65,000 65,000 - 0%
52065 Water Purchases 157,000 157,000 - 0%
52070 Sewage Treatment 807,000 900,950 93,950 12%
Total Services & Supplies 1,377,176 1,522,026 144,850 11% OTHER
53010 Improvements - - 0%
53030 Equipment 32,000 (32,000) -100%
54010 Administrative Charges - - 0%
54025 Indirect Costs 495,541 (495,541) -100%
55961 Transfers to Other Funds 20,096 (20,096) -100%
Total Other 515,637 - (547,637) -100%
TOTAL BUDGET 2,600,196 2,249,751 (350,445) -13%
163
C.
Utilities Fund
Fund 540
Department/Division: 6130 Sewer
2023/24 2024/25
Requested
Account and Title: Budget Budget Change $$ Change %%
SALARIES & BENEFITS 521,071 605,928 84,857 16%
Total Salaries & Benefits 521,071 605,928 84,857 16%
SERVICES AND SUPPLIES
52001 Safety Clothing 3,250 3,250 - 0%
52005 Communications 3,600 3,600 - 0%
52010 Equipment Maintenance 11,400 24,100 12,700 111%
52015 Maint. Structures/Improvement.Grounds 18,360 18,360 - 0% 52020 Memberships 7,914 9,290 1,376 17%
52025 Office Expense 17,687 17,687 - 0%
52030 Professional Services 56,666 21,166 (35,500) -63% 52035 Equipment Rental - - 0%
52045 Special Department Expense 62,000 50,000 (12,000) -19% 52050 Small Tools & Supplies 5,410 5,410 - 0%
52055 Travel & Training 1,664 2,964 1,300 78%
52060 Utilities 25,600 25,600 - 0%
52065 Water Purchases - - 0%
52070 Sewage Treatment 1,562,028 1,600,000 37,972 2%
Total Services & Supplies 1,775,579 1,781,427 5,848 0%
OTHER
53010 Improvements - - 0%
53030 Equipment 48,000 (48,000) -100%
54010 Administrative Charges - - 0%
54025 Indirect Costs 515,411 (515,411) -100%
55961 Transfers to Other Funds 20,096 (20,096) -100%
Total Other 583,507 - (583,507) -100%
TOTAL BUDGET 2,880,157 2,387,355 (492,802) -17%
164
C.
NPDES Fund
Fund 220
Department/Division: 6140 NPDES
2023/24 2024/25
Requested
Account and Title: Budget Budget Change $$ Change %%
SALARIES & BENEFITS 346,980 363,386 16,406 5%
Total Salaries & Benefits 346,980 363,386 16,406 5%
SERVICES AND SUPPLIES
52001 Safety Clothing 1,850 1,850 - 0%
52005 Communications 1,550 1,550 - 0%
52010 Equipment Maintenance 10,100 10,100 - 0%
52015 Maint. Structures/Improvement.Grounds 18,000 18,000 - 0% 52020 Memberships 15,700 20,000 4,300 27%
52025 Office Expense - - - 0%
52030 Professional Services 45,001 45,001 - 0%
52035 Equipment Rental - - - 0%
52045 Special Department Expense 6,000 2,000 (4,000) -67% 52050 Small Tools & Supplies - - - 0%
52055 Travel & Training 1,400 - (1,400) -100%
52060 Utilities - - 0%
52065 Water Purchases - - 0%
52070 Sewage Treatment - - 0%
Total Services & Supplies 99,601 98,501 (1,100) -1%
OTHER
53010 Improvements - - 0%
53030 Equipment - - 0%
54010 Administrative Charges - - 0%
54025 Indirect Costs 135,796 - -100%
55961 Transfers to Other Funds - - 0%
Total Other 135,796 - - -100%
TOTAL BUDGET 582,377 461,887 15,306 -21%
165
C.
General Fund
Fund 100
Department/Division: 6300 Emergency Operations Center
2023/24 2024/25
Requested
Account and Title: Budget Budget Change $$ Change %%
SALARIES & BENEFITS 92,007 95,119 3,112 3%
Total Salaries & Benefits 92,007 95,119 3,112 3%
SERVICES AND SUPPLIES
52001 Safety Clothing 150 150 - 0%
52005 Communications 7,750 7,750 - 0%
52010 Equipment Maintenance 5,850 5,850 - 0%
52015 Maint. Structures/Improvement.Grounds - - 0%
52020 Memberships - - 0%
52025 Office Expense 750 750 - 0%
52030 Professional Services - - 0%
52035 Equipment Rental - - 0%
52045 Special Department Expense 50,000 50,000 - 0%
52050 Small Tools & Supplies - - 0%
52055 Travel & Training 800 800 - 0%
52060 Utilities - - 0%
52065 Water Purchases - - 0%
52070 Sewage Treatment - - 0%
Total Services & Supplies 65,300 65,300 - 0%
OTHER
53010 Improvements - - 0%
53030 Equipment - - 0%
54010 Administrative Charges - - 0%
54025 Indirect Costs - - 0%
55961 Transfers to Other Funds - - 0%
Total Other - - - 0%
TOTAL BUDGET 157,307 160,419 3,112 2%
166
C.
City of Brisbane
FY25 Budget Requests
Department/Division: Public Works
Request Description FY25 requests Division Purpose
Public Outdoor Lighting
Assessment
$ 34,000 Open Space New one time costs
Green Team Projects $ 10,000 Open Space New ongoing costs ARC GIS License $ 9,500 Public Works Admin New ongoing costs Tree Replacement $ 10,300 Streets & Storms Captured historical costs (some may be vendor increases)
Visitaction Trash Pick Up $ 14,000 Streets & Storms Captured historical costs (some may be vendor increases)
Signage & Striping Materials &
Installation
$ 5,000 Streets & Storms Captured historical costs (some may be vendor increases)
Walkway Stair Repair $ 10,000 Streets & Storms New one time costs Striping Mods AB413 $ 60,000 Streets & Storms New one time costs Fire Safety Planning $ 50,000 Streets & Storms New one time costs Utilities - Water & Electricity $ 80,000 Park Maintenance Captured historical costs (some may be vendor increases)
Community Park - Bathroom
Renovation
$ 18,000 Park Maintenance New one time costs
Community Park - Play Structure
Repairs
$ 15,000 Park Maintenance New one time costs
Utilities - Water Charges $ 40,000 Landscape Maintenance Captured historical costs (some may be vendor increases)
Gas & oil for PW Vehicles $ 12,700 Landscape Maintenance Captured historical costs (some may be vendor increases)
Margaret Tank Roof Safety
Replacement
$ 40,000 Water New one time costs
SWRCB Cross Connection Control
Policy Plan
$ 50,000 Water ($35,00) & GVMID
($15,000)
New one time costs
Utilties - Water Purchases $ 178,000 Water Captured historical costs (some may be vendor increases)
Maintenance Mgmt & Emergency
Response Plan
$ 217,000 Water Quality Monitoring New one time costs
Crocker Trail Maintenance $ 16,000 GVMID Captured historical costs (some may be vendor increases)
Road to Access N. Hill Sanitary
Sewer Junction
$ 50,000 GVMID New one time costs
Utilities - Sewer Treatment $ 93,950 GVMID Captured historical costs (some may be vendor increases)
Gas & oil for PW Vehicles $ 12,700 Sewer Captured historical costs (some may be vendor increases)
Utilities - Sewer Treatment $ 37,972 Sewer Captured historical costs (some may be vendor increases)
$ 1,064,122
167
C.
Department Background
Department/Division: Park & Recreation
Mission Statement –
Overall Budget
Number of Positions 7 Full-time
50 Part-time
Areas Covered
3454643
$3,454,642
Administration, Facilities, Youth, Teens, Adults, Special Events, Seniors, Aquatics
The mission of Parks & Recreation in Brisbane is to engage and inspire a healthier community by providing fun, inclusive, innovative and safe parks, facilities and programs.
Admin
26%
Facilities
12%
Youth
27%
Adults
2%
Seniors
5%
Special
Events
4%
Teens
3%
Aquatics
21%
168
C.
General Fund
Fund 100
Department/Division: 7001 Park & Recreation Administration 2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 722,325 833,357 111,032 15%
Total Salaries & Benefits 722,325 833,357 111,032 15%
SERVICES AND SUPPLIES
52001 Safety Clothing - - -
52005 Communications - - -
52010 Equipment Maintenance 104 104 - 0%
52015 Maint. Structures/Improvement.Grounds - - -
52020 Memberships 1,732 1,940 208 12%
52025 Office Expense 3,488 4,488 1,000 29%
52030 Professional Services 21,646 21,646 - 0%
52035 Equipment Rental - - -
52045 Special Department Expense 3,417 4,283 866 25%
52050 Small Tools & Supplies 204 204 - 0%
52055 Travel & Training 18,002 18,002 - 0%
52060 Utilities - - -
Total Services & Supplies 48,593 50,667 2,074 4%
OTHER
53010 Improvements - -
53030 Equipment - -
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other - - -
TOTAL BUDGET $ 770,918 $ 884,024 $ 113,106 15%
169
C.
General Fund
Fund 100
Department/Division: 7002 Recreation Facilities
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 200,744 188,814 (11,930) -6%
Total Salaries & Benefits 200,744 188,814 (11,930) -6%
SERVICES AND SUPPLIES
52001 Safety Clothing 312 312 - 0%
52005 Communications 2,032 2,032 - 0%
52010 Equipment Maintenance - - -
52015 Maint. Structures/Improvement.Grounds 21,008 21,008 - 0% 52020 Memberships - - -
52025 Office Expense 260 260 - 0%
52030 Professional Services 89,702 97,702 8,000 9%
52035 Equipment Rental 7,178 7,178 - 0%
52045 Special Department Expense 20,540 10,540 (10,000) -49% 52050 Small Tools & Supplies 2,500 2,500 - 0%
52055 Travel & Training - - -
52060 Utilities 82,712 82,712 - 0%
Total Services & Supplies 226,244 224,244 (2,000) -1%
OTHER
53010 Improvements - -
53030 Equipment 500 700 200 40%
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other 500 700 200 40%
TOTAL BUDGET $ 427,488 $ 413,758 $ (13,730) -3%
170
C.
General Fund
Fund 100
Department/Division: 7003 Youth
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 627,162 735,442 108,280 17%
Total Salaries & Benefits 627,162 735,442 108,280 17%
SERVICES AND SUPPLIES
52001 Safety Clothing 1,836 1,836 - 0%
52005 Communications - - -
52010 Equipment Maintenance - - -
52015 Maint. Structures/Improvement.Grounds - - -
52020 Memberships - - -
52025 Office Expense - - -
52030 Professional Services 56,164 58,528 2,364 4%
52035 Equipment Rental 22,113 22,113 - 0%
52045 Special Department Expense 76,810 82,318 5,508 7% 52050 Small Tools & Supplies 2,000 2,000 - 0%
52055 Travel & Training - - -
52060 Utilities - - -
52900 Contributions 36,101 36,101 - 0%
Total Services & Supplies 195,024 202,896 7,872 22%
OTHER
53010 Improvements - -
53030 Equipment 700 - (700) -100%
54010 Administrative Charges - - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other 700 - (700)
TOTAL BUDGET $ 822,886 $ 938,338 $ 115,452 14%
171
C.
General Fund
Fund 100
Department/Division: 7004 Adult
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 16,608 25,959 9,351 56%
Total Salaries & Benefits 16,608 25,959 9,351 56%
SERVICES AND SUPPLIES
52001 Safety Clothing - - -
52005 Communications - - -
52010 Equipment Maintenance - - -
52015 Maint. Structures/Improvement.Grounds - - -
52020 Memberships 510 510 - 0%
52025 Office Expense 208 208 - 0%
52030 Professional Services 55,772 52,727 (3,045) -5%
52035 Equipment Rental - - -
52045 Special Department Expense 4,835 7,208 2,373 49%
52050 Small Tools & Supplies 2,000 2,000 - 0%
52055 Travel & Training - - -
52060 Utilities - - -
52900 Contributions - - -
Total Services & Supplies 63,325 62,653 (672) -1%
OTHER
53010 Improvements - -
53030 Equipment - -
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other - - -
TOTAL BUDGET $ 79,933 $ 88,612 $ 8,679 11%
172
C.
General Fund
Fund 100
Department/Division: 7005 Seniors
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 85,586 56,081 (29,505) -34%
Total Salaries & Benefits 85,586 56,081 (29,505) -34%
SERVICES AND SUPPLIES
52001 Safety Clothing - - -
52005 Communications 1,080 1,080 - 0%
52010 Equipment Maintenance - - -
52015 Maint. Structures/Improvement.Grounds - - -
52020 Memberships - - -
52025 Office Expense - - -
52030 Professional Services 9,364 9,364 - 0%
52035 Equipment Rental - - -
52045 Special Department Expense 50,273 45,273 (5,000) -10% 52050 Small Tools & Supplies 500 - (500) -100%
52055 Travel & Training - - -
52060 Utilities - - -
52900 Contributions - - -
Total Services & Supplies 61,217 55,717 (5,500) -9%
OTHER
53010 Improvements - -
53030 Equipment 364 364
54010 Administrative Charges - - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other 364 364 - 0%
TOTAL BUDGET 147,167 112,162 $ (35,005) -24%
173
C.
General Fund
Fund 100
Department/Division: 7006 Special Events
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 60,545 69,290 8,745 14%
Total Salaries & Benefits 60,545 69,290 8,745 14%
SERVICES AND SUPPLIES
52001 Safety Clothing - - -
52005 Communications - - -
52010 Equipment Maintenance - - -
52015 Maint. Structures/Improvement.Grounds - - -
52020 Memberships - - -
52025 Office Expense - - -
52030 Professional Services - - -
52035 Equipment Rental - - -
52045 Special Department Expense 67,732 68,080 348 1%
52050 Small Tools & Supplies - - -
52055 Travel & Training - - -
52060 Utilities - - -
52900 Contributions - - -
Total Services & Supplies 67,732 68,080 348 1%
OTHER
53010 Improvements - -
53030 Equipment - -
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other - - -
TOTAL BUDGET $ 128,277 $ 137,370 $ 9,093 7%
174
C.
General Fund
Fund 100
Department/Division: 7007 Teens
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 29,812 44,615 14,803 50%
Total Salaries & Benefits 29,812 44,615 14,803 50%
SERVICES AND SUPPLIES
52001 Safety Clothing - - -
52005 Communications - - -
52010 Equipment Maintenance - - -
52015 Maint. Structures/Improvement.Grounds - - -
52020 Memberships - - -
52025 Office Expense - - -
52030 Professional Services 2,081 2,381 300 14%
52035 Equipment Rental - - -
52045 Special Department Expense 8,283 8,177 (106) -1%
52050 Small Tools & Supplies - - -
52055 Travel & Training 500 500 - 0%
52060 Utilities - - -
52900 Contributions 50,000 50,000 -
Total Services & Supplies 60,864 61,058 194 0%
OTHER
53010 Improvements - -
53030 Equipment - -
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other - - -
TOTAL BUDGET $ 90,676 $ 105,673 $ 14,997 17%
175
C.
General Fund
Fund 100
Department/Division: 7008 Aquatics
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS 384,890 444,482 59,592 15%
Total Salaries & Benefits 384,890 444,482 59,592 15%
SERVICES AND SUPPLIES
52001 Safety Clothing 2,164 2,164 - 0%
52005 Communications 6,158 5,050 (1,108) -18%
52010 Equipment Maintenance - - -
52015 Maint. Structures/Improvement.Grounds 47,576 48,500 924 2% 52020 Memberships - - -
52025 Office Expense 1,028 1,197 169 16%
52030 Professional Services 59,641 80,620 20,979 35%
52035 Equipment Rental - - -
52045 Special Department Expense 7,300 4,200 (3,100) -42% 52050 Small Tools & Supplies 6,563 4,763 (1,800) -27%
52055 Travel & Training - - -
52060 Utilities 86,595 135,000 48,405
52900 Contributions - - - 0%
Total Services & Supplies 217,025 281,494 64,469 30%
OTHER
53010 Improvements - -
53030 Equipment - -
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other - - -
TOTAL BUDGET $ 601,915 $ 725,976 $ 124,061 21%
176
C.
City of Brisbane - FY25 Budget Requests
PARKS & RECREATION
Request Description FY25 cost Purpose
Admin - Office Supplies 1,000 Increase
Special Dept: BMI & ASCAP Music licenses
(+SESAC)
600 To avoid litigation for using without proper
permissions
Special Dept: When2Work (youth & Aquatics
staff scheduling)
360 Cost increase
P&R-7001 Admin 1,960
Prof. Svcs: Playground surfacing - top coat seal 8,000 Cost increase Equipment: MB & CC replacement tables & 200 Cost increase P&R-7002 Recreation Facilities 8,200
Prof. Svcs: Basketball referees 960 Cost increase
Prof. Svcs: Tinty Tot Playground (M.O.B) 172 Expanded attendance Prof. Svcs: Youth Art 1,636 Expanded attendance
Prof. Svcs: Youth Tahitian Dance class 2,000 Expanded attendance Special Dept: Parents' Night Out supplies 1,250 Expanded attendance Special Dept: Security camera and subscription 1,500
Special Dept: Summer camp t-shirts 1,000 Expanded attendance Special Dept: Youth Sports 1,758 New programs: Track, pickleball, girls volleyball
P&R-7003 Youth 10,276
Prof. Svcs: Collective Camp 1,192 Expanded program
Prof. Svcs: Softball umpires 445 Cost increase
Special Dept: Awards for Adult softball,
volleyball and basketball leagues
587 Expanded program
Special Dept: Pickleball courts 1,000 New program
Special Dept: Softball umpires 786 Cost increase
P&R-7004 Adult 4,010
Special Dept: Habitat Restoration 64 Cost increase
Special Dept: Volunteer of the year 284 Expanded program P&R-7006 Special Events 348
Prof. Svcs: Disc Jockey/Teen Dances 300 Cost increase
Special Dept: Dance and party food and supplies 294 Expanded program P&R-7007 Teens 594
177
C.
Request Description FY25 cost Purpose
Communications: Telephone serrvice/internet
service
190 Cost increase
Maint - Structural: Solar/Thermal system
(currently carrier, boiler)
924 Cost increase
Office Exp: Office supplies 169 Cost increase
Prof. Svcs: Adult private lessons 6,000 New contracted program Prof. Svcs: HVAC maintenance (Carrier) 379 Cost increase Prof. Svcs: Janitorial services 15,600 Cost increase
Prof. Svcs: Pressure washing roof & pool 4,000 Cost increase Special Dept: County health community pool
inspection fee
700 Cost increase
Special Dept: New deep end rope 500 Cost increase
Small tools & Supplies: Portable fans for
bathrooms for ventilation
1,600
Utilities: PG&E 50,878 Cost increase
P&R-7008 Aquatics 80,940
178
C.
Department Background
Department/Division: Marina
Mission Statement –
Overall Budget
Number of Positions Full time - 4
Areas Covered
The mission of the Marina is to professionally operate a well-maintained, clean and secure facility with prompt, courteous customer service for boaters and the general public. department objectives to sustain and enhance the quality of life within the City of Brisbane by providing safe, well-maintained public infrastructure and facilities.
$1,552,886
Marina Maintenance, Billing
179
C.
Marina Fund
Fund 550
Department/Division: 7009 Marina
2023/24 2024/25
Requested
Account and Title: Budget Budget Change $$ Change %%
SALARIES & BENEFITS 761,736 834,590 72,854 10%
Total Salaries & Benefits 761,736 834,590 72,854 10%
SERVICES AND SUPPLIES
52001 Safety Clothing 2,230 2,230 - 0%
52005 Communications 28,132 28,132 - 0%
52010 Equipment Maintenance 76,712 28,175 (48,537) -63% 52015 Maint. Structures/Improvement.Grounds 72,886 73,860 974 1% 52020 Memberships 1,100 1,100 - 0%
52025 Office Expense 43,764 43,764 - 0%
52030 Professional Services 67,738 82,060 14,322 21%
52035 Equipment Rental 2,185 2,185 - 0%
52045 Special Department Expense 180,710 180,540 (170) 0% 52050 Small Tools & Supplies 3,000 3,500 500 17%
52055 Travel & Training 3,750 3,750 - 0%
52060 Utilities 135,252 269,000 133,748 99%
52065 Water Purchases - - 0%
52070 Sewage Treatment - - 0%
Total Services & Supplies 617,459 718,296 100,837 16%
OTHER
53010 Improvements - - 0%
53030 Equipment - - 0%
54010 Administrative Charges - - 0%
54025 Indirect Costs 380,769 - -100%
55961 Transfers to Other Funds 196,158 - -100%
Total Other 576,927 - - -100%
TOTAL BUDGET 2,533,050 1,552,886 173,691 -39%
180
C.
City of Brisbane
FY25 Budget Requests
Department/Division: 7009 - Marina
Request Description
FY25
Increase in
cost Purpose
Bathymetric Survey $ 11,000 New one time costs
Utilities - Electricity, water and
sewer
$ 133,748 Captured historical costs (some may be
vendor increases)
$ 144,748
181
C.
Department Background
Department/Division: 7100 Library
Mission Statement –
Overall Budget
Number of Positions none
Areas Covered Maintenance of the Library, allows for additional events held at the Library. $101,300
San Mateo County Libraries strenghten our communities by creating an inclusive sense of place and environment for learning.
182
C.
vents held at the Library.
183
C.
General Fund
Fund 100
Department/Division: 7100 Library
2023/24 2024/25
Requested
Account and Title: Budget Budget Change $$ Change %%
SALARIES & BENEFITS - - 0%
Total Salaries & Benefits - - - 0%
SERVICES AND SUPPLIES
52001 Safety Clothing - - 0%
52005 Communications - - 0%
52010 Equipment Maintenance - 0%
52015 Maint. Structures/Improvement.Grounds 10,900 9,000 (1,900) -17% 52020 Memberships - - 0%
52025 Office Expense - 0%
52030 Professional Services 29,200 64,300 35,100 120%
52035 Equipment Rental - - 0%
52045 Special Department Expense - - 0%
52050 Small Tools & Supplies - - 0%
52055 Travel & Training - - 0%
52060 Utilities 4,500 28,000 23,500 522%
52300 Contributions 26,000
Total Services & Supplies 70,600 101,300 56,700 43%
OTHER
53010 Improvements -
53030 Equipment -
54010 Administrative Charges -
54025 Indirect Costs -
55961 Transfers to Other Funds -
Total Other - - -
TOTAL BUDGET $ 70,600 $ 101,300 $ 56,700 43%
184
C.
City of Brisbane
FY25 Budget Requests
Department/Division: 7100 Library
Request Description
FY25 Increase in
cost Purpose
Janitorial Contract Services 6,000 Captured historical costs (some may be vendor increases)
Rainwater Harvesting Program & Treatment 9,000 New ongoing costs Exterior Wood Treatment 15,000 New ongoing costs
Utilities - Electricity, water, gas & sewer 23,500 Captured historical costs (some may be vendor increases)
53,500
Staff Report Dept Breakdown FY25 Library.xlsx
185
C.
Department Background
Department/Division: 8001 Central Services
Mission Statement –
Overall Budget
Number of Positions None
Areas Covered
Central Services covers the costs of general organization-wide services and programs not attributed to any one department, to implement policies and programs as established by City Council and the City Manager. $1,390,880
General Citywide issues and services
186
C.
General Fund
Fund 100
Department/Division: 8001 Central Services
2023/24 2024/25
Budget Requested
Account and Title: Budget Change $$ Change %%
SALARIES & BENEFITS - - -
Total Salaries & Benefits - - -
SERVICES AND SUPPLIES
52001 Safety Clothing - - -
52005 Communications 70,000 80,000 10,000 14%
52010 Equipment Maintenance 3,000 - (3,000) -100%
52015 Maint. Structures/Improvement.Grounds 57,000 67,500 10,500 18% 52020 Memberships 60,850 47,680 (13,170) -22%
52025 Office Expense 42,700 70,200 27,500 64%
52030 Professional Services 508,941 541,400 32,459 6%
52033 Office Space Rental 300,000 323,000 23,000 8%
52035 Equipment Rental 48,600 38,600 (10,000) -21%
52045 Special Department Expense 13,500 13,500 - 0%
52050 Small Tools & Supplies - - -
52055 Travel & Training - - -
52060 Utilities 70,000 125,000 55,000 79%
52900 Contributions 21,000 21,000 - 0%
Total Services & Supplies 1,195,591 1,327,880 132,289 11% OTHER
53010 Improvements - -
53030 Equipment 77,700 63,000 (14,700) -19%
54010 Administrative Charges - -
54025 Indirect Costs - -
55961 Transfers to Other Funds - -
Total Other 77,700 63,000 (14,700) -19%
TOTAL BUDGET 1,273,291 1,390,880 $ 117,589 9%
187
C.
City of Brisbane
FY25 Budget Requests
Department/Division: 8001 Central Services
Request Description FY25 Requests Purpose
Communications: Reflected here is the cost of the
majority of the city telephone lines
10,000 costs increase
Maint of Structures, Improvements & Grounds:
Janitorial Services
10,500 costs increase and expansion to City Hall
Annex
Memberships 2,560 costs increase
Office Exp: Credit Cards Processing Fees 26,000 increased usage as online encouraged Prof. Svcs: ArchiveSocial (Social Media Archiving) 1,060 costs increase Prof. Svcs: Citizen Engagement Software
(Citizenlab)
9,000 costs increase
Prof. Svcs: Endsight Server support 10,000 costs increase Prof. Svcs: Endsight Tech Support (2 days a week) 10,000 costs increase Prof. Svcs: Laserfiche 52,000 new record system part of Tech Plan Office Space Rental Exp - 25 Park Place 23,000 annual lease increase Utilities: Gas and Electric (City Hall) 5,000 costs increase and expansion to City Hall Annex
Utilities: Water and Sewer Service 50,000 costs increase and expansion to City Hall Annex
Equipment: Server 1,500 costs increase
210,620
Notable reductions:
Equipment Maintenance (3,000) part of contract; off contract now charged to departments
188
C.
Request Description FY25 Requests Purpose
Memberships - Miscellaneous outdated (15,900) removed from budget Prof. Svcs - Baker Tilly (31,500) One time cost for org-wide IT Project review Prof. Svcs - STAR Newsletter (18,000) Reduction in production costs Equipment Rental - office equipment (10,000) Copier contracts restructured and equipment needs re-assessed
Equipment - widescreen for community room (10,000) one-time in FY24 Equipment - workstations and contingency (6,000) combined line items (94,400)
189
C.