Brisbane City Council
May 7, 2026

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 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.

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 department/program level.
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CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – BUDGETS AND BUDGETARY ACCOUNTING (Continued)
A. Budgeting Procedures (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 City Manager 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.

41

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 2 – BUDGETS AND BUDGETARY ACCOUNTING (Continued)
C. Expenditures in Excess of Appropriations
The following funds had expenditures in excess of appropriations:

Fund Department/Program
Amount in Excess
of Budget
General Fund:

General Government $2,479,749
Public Safety - Police 520,941
Public Works 410,326
Capital Outlay 5,553,080
Debt Service: Principal 13,751
Debt Service: Interest and Fiscal Charges 453
Low and Moderate Income Housing Assets
Special Revenue Fund Public Works 7,238
Non-major Special Revenue Funds:

NPDES Public Works 245,311
ARPA General Government 37,800
Non-major Debt Service Funds:

B/GVMID Public Financing Authority
Debt Service: Interest and Fiscal Charges 70,876
2017 B/GVMID Public Financing Authority Debt Service: Principal 24,910 2017 B/GVMID Public Financing Authority Debt Service: Interest and Fiscal Charges 19,566 2018 Library Construction Loan
Debt Service: Interest and Fiscal Charges 14,735
2022 B/GVMID Public Financing Authority Debt Service: Interest and Fiscal Charges 233,627 The funds had sufficient fund balances or revenues to finance these expenditures. 42

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 $ 31,099,973 Restricted cash and investments 1,558,668
Total City Cash and Investments 32,658,641
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 $ 35,910,065
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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CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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.
44

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 of 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 4,792,445
Total Cash and Investments $35,910,065
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 4,792,445
Total Cash and Investments $35,910,065
45

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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.
46

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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:

47

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 Funds 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 Funds:

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.

48

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 Successor Agency 2,295,996 2,295,996
Loan to City Engineer/Director
of Public Works 1,046 1,046
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 the trust 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. 49

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 5 – LOANS RECEIVABLE (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 income 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 the unit before rolling 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 is comprised 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 Recreation 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. 50

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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
51

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 6 – CAPITAL ASSETS (Continued)
Changes in capital assets during the year ended June 30, 2023 comprise of the following:

Balance at Balance at
June 30, 2022 Additions Adjustments Transfers 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 $893,165 ($549,727) ($10,696,079) 975,141 Total non-depreciable capital assets: 28,049,582 893,165 (549,727) (10,696,079) 17,696,941 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 Of 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:

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 Of 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 $4,435,424 ($549,727) $71,223,745 52

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 6 – CAPITAL ASSETS (Continued)
Balance at Balance at
June 30, 2022 Additions Adjustments 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
Utility:

Water $233,335
Sewer 82,565
Guadalupe Valley Municipal Improvement District 336,272 Marina 107,482
Total Business-Type Activities $759,654
53

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 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 Leases payable (see Note 11) 3,024,063 $5,544,819 (158,915) 8,409,967 170,747 8,239,220 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 the 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. 54

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 were 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
2034-2035 715,000 39,150 754,150
Total $3,665,000 $870,869 $4,535,869
On August 27, 2025, Standard & Poor’s (S&P) downgraded its underlying credit rating of the B/GVMID Financing Authority Lease Revenue Bonds, by removing the Bonds from CreditWatch with negative implications. On September 24, 2025, S&P withdrew its rating on B/GVMID due to the City’s delay in issuing the audited financial statements. 55

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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
On August 27, 2025, Standard & Poor’s downgraded its underlying credit rating of the City of Brisbane’s Lease Revenue Bonds, by removing the Bonds from CreditWatch with negative implications. On September 24, 2025, S&P withdrew its rating on the City due to the City’s delay in issuing the audited financial statements.
56

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 included construction and construction management of the new library. Principal payments are due each April and December 15, commencing in December 2018. Interest is 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 a 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.
57

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, and 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
G. Leases
The City is party to one lease, as the lessee, for the party at 25 Park Place. See Note 11 for details.
58

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 7 – LONG-TERM DEBT (Continued)
H. 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 March 1 and September 1, with an 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 Bond 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
On March 4, 2025, Standard & Poor’s placed their ratings on the 2015 Utility Revenue Bonds CreditWatch with negative implications, followed by downgrading the Bonds to BBB on May 30, 2025. On September 24, 2025, S&P withdrew its rating on the City’s outstanding water and sewer revenue bonds due to the City’s delay in issuing the audited financial statements. 59

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 7 – LONG-TERM DEBT (Continued)
I. 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 May 1 and November 1, with an 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.

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.
60

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 8 – NET POSITION AND FUND BALANCES (Continued)
Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. 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.

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.

61

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 8 – NET POSITION AND FUND BALANCES (Continued)
C. PARS Trust for Pension Program
The City established an irrevocable trust with Public Agency Retirements Services (PARS) to set aside funds for its 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.

D. Fund Balance Classification
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 $153,596 153,596
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 6,301,911 12,161,827 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 9,713,677 ($6,838,446) (125,705) 2,749,526
Total Fund Balances $15,523,705 $4,475,760 ($6,838,446) $11,329,924 $24,490,943 E. 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 $3.5 million. 62

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 8 – NET POSITION AND FUND BALANCES (Continued)
E. Minimum Fund Balance Policies (Continued)

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 $2.5 million.

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 $2.0 million.

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 approximately $3.5 million. 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.
63

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 8 – NET POSITION AND FUND BALANCES (Continued)
F. 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.
64

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 50-55+ 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% Required unfunded actuarial liability contribution
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% Required unfunded actuarial liability contribution
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 both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. 65

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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%
66

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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
67

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 for all tiers:

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

2.30%
(1)

6.90% (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 June 30, 2021
June 30, 2022
Entry-Age Normal Cost Method
All CalPERS Plans

6.90%
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2021 valuation were based on the results of a November 2021 actuarial experience study for the period 2001 to 2019. Further details of the Experience Study can be found on the CalPERS website.

Discount Rate – The discount rate used to measure the total pension liability for the Plan was

6.90%. 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 adjusted to account for assumed administrative expenses of 10 basis points.
68

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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
69

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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
70

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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%
71

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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
2024 $15,489
2025 11,678
2026 31,201
2027 (993)
Total $57,375
72

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
73

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 6.50%, Medicare 5.50% 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. 74

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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
(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
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 (5.50%) 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
75

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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, 2024. 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.
76

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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. 77

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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
Trust 12/31/2046 $ 145,585 $158,915 various $ 8,023,059 $8,409,967 78

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 2,055,798 78,288
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.
79

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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.
80

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 $620,798
Capital Projects Fund 15,800
NPDES Special Revenue Fund 97,381
Grant Special Revenue Fund 1,734
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.

81

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 $83,087 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 $102,744.

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 $4,858.
82

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 83

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 84

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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) 85

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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 at 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.
86

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
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
On July 12, 2023, the Brisbane/Guadalupe Valley Municipal Improvement District Financing Authority issued the Series 2023 Lease Revenue Bonds in the amount of $5,385,000 to finance the costs of tenant improvements to, and related equipment and furnishings for, a building at 25 Park Place, leased by the City and used for municipal services.

B. FEMA Assistance
In January 2023, the City incurred significant infrastructure damages due to the major storms that hit most of California. The City received notification from FEMA that the City will receive grant funding to cover certain construction costs. The City received approximately $550 thousand in April of 2024.
87

CITY OF BRISBANE

NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2023
NOTE 17 – SUBSEQUENT EVENTS (Continued)
C. Withdrawn Credit Rating
As discussed in Note 7, S&P withdrew the credit ratings for the City and B/GVMID’s outstanding Lease Revenue Bonds and Water and Sewer Utility Bonds due to the City’s delay in issuing audited financial statements.
88

REQUIRED SUPPLEMENTARY INFORMATION

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. 90

CITY OF BRISBANE

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
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%
91

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 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

6.90%, net of pension plan investment and administrative expenses, including inflation 92

CITY OF BRISBANE

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
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
93

CITY OF BRISBANE

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
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. 94

CITY OF BRISBANE

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
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%
95

CITY OF BRISBANE

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
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

6.90%, net of pension plan investment and administrative expenses, including inflation 96

CITY OF BRISBANE

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
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
97

CITY OF BRISBANE

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
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 76,811 43,199 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
98

CITY OF BRISBANE

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
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%
99

CITY OF BRISBANE

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
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)
100

CITY OF BRISBANE

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023
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
101

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 562,248 443,442 464,182 534,815 534,725 435,962 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) 427,820 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 $7,376,323 $8,4 6,772,332 44,061 $9,055,847 $8,065,939 $8,493,759 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 $4,995,481 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. 102

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

6.50%, trending down to 4.04%
Methods and assumptions used to determine contribution rates:
103

CITY OF BRISBANE

GENERAL FUND

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual (Negative)
REVENUES:

Taxes and special assessments $13,487,829 $15,246,612 $16,394,318 $1,147,706 Intergovernmental 17,000 17,000 356,839 339,839
Licenses, permits and fees 5,333,000 6,287,527 7,174,444 886,917 Charges for services 2,449,794 4,164,760 3,620,043 (544,717) Fines and forfeitures 2,000 2,000 50,974 48,974
Use of money and property 70,000 70,000 422,239 352,239 Other revenues 456,577 456,577 432,037 (24,540)
Total Revenues 21,816,200 26,244,476 28,450,894 2,206,418 EXPENDITURES:

Current:

General government 7,733,436 7,753,436 10,233,185 (2,479,749) Public safety - police 5,378,554 5,378,554 5,899,495 (520,941) Public safety - fire 4,409,374 4,874,594 4,260,084 614,510 Public works 2,504,624 2,504,624 2,914,950 (410,326)
Parks and recreation 2,944,502 2,944,502 2,868,778 75,724 Capital outlay 5,553,080 (5,553,080)
Debt service:

Principal 13,751 (13,751)
Interest and fiscal charges 453 (453)
Total Expenditures 22,970,490 23,455,710 31,743,776 (8,288,066)

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (1,154,290) 2,788,766 (3,292,882) (6,081,648)

OTHER FINANCING SOURCES (USES)
Proceeds from leases 5,544,819 5,544,819
Transfers in 168,136 168,136
Transfers (out) (75,000) (2,096,658) (2,021,658)
Total other financing sources (uses) (75,000) 3,616,297 3,691,297 NET CHANGE IN FUND BALANCE ($1,154,290) $2,713,766 323,415 ($2,390,351) BEGINNING FUND BALANCE 15,200,290
ENDING FUND BALANCE $15,523,705
104

CITY OF BRISBANE

LOW AND MODERATE INCOME HOUSING ASSETS

SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
Budgeted Variance with
Amounts Final Budget
Positive
Final Actual (Negative)
REVENUES:

Use of money and property $60,727 $60,727
Total Revenues 60,727 60,727
EXPENDITURES:

Current:

Public works $45,000 52,238 (7,238)
Total Expenditures 45,000 52,238 (7,238)

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (45,000) 8,489 53,489

OTHER FINANCING SOURCES (USES)
Proceeds from sales of capital assets
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE ($45,000) 8,489 $53,489
BEGINNING FUND BALANCE 4,467,271
ENDING FUND BALANCE $4,475,760

SPECIAL REVENUE FUND
105

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 exceeding $200,000 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 department/program 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.
106

SUPPLEMENTAL INFORMATION

This Page Left Intentionally Blank

NON-MAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS
Gas Tax Fund. Portions of the tax rate per gallon levied by the State of California on all gasoline purchases are allocated to cities throughout the State on a population basis. These funds are restricted for expenditures by the State of California for street-related purposes only (reference California Streets and Highways Code Sections 2105, 2106, 2107 and 2107.5).

Measure A Fund. The County of San Mateo voters approved a half cent sales tax measure in 1988 which is designated for transportation related facilities and roads. The sales tax revenues received pursuant to Measure A are distributed to cities based on population (50%) and road miles (50%).

Measure W Fund. The County of San Mateo voters approved a half cent sales tax measure in 2019 which is designated for congestion relief. The sales tax revenues received pursuant to Measure W are distributed to cities based on population (50%) and road miles (50%).

Sierra Point Landscape & Lighting Fund. To account for special assessment revenues and costs of providing landscaping and lighting services within the boundaries of the Sierra Point Landscape and Lighting District.

Grants. To account for activities of various grants including Local Law Enforcement Block Grant, Community Oriented Policing Grant, the COPS Technology Grant, and Supplemental Law Enforcement Services Fund (SLESF) Grant.

National Pollution Discharge Elimination System Fund (NPDES). Federal statute mandates a program aimed at the elimination of pollutants from drainage systems. Commonly known as NPDES, a special revenue fund is required by law to account for tax assessments collected and expenditures incurred in administering this program.

Traffic Congestion Relief Fund. Receives and disburses the City’s share of state gasoline tax collections in accordance with the provisions of California’s Traffic Congestion Relief Act of 2000.

Revenues reflect loan payments received over five years through the Traffic Congestion Relief Program.

Fire Training Fund. This fund was created from the return and refund of one of the Universal Trainers for the Fire Department. This fund will accumulate funds dedicated to Fire Training and equipment.

Contract Employees. This fund was created to track the salary and benefits of city employees who have been contracted to other agencies and the reimbursements from the hiring agency.

Public Arts. This fund was established to receive deposits from developers as part of the “Art in Public Places Program.” Commercial projects with development costs in excess of $1,000,000 are required to contribute 1% of the cost to the Brisbane Public Art Fund. Public Projects with development costs in excess of $1,000,000 are required to contribute 0.5% of the cost to the Brisbane Public Art Fund. Projects in excess of $5,000,000 can choose to pay into the Brisbane Public Art Fund or pay for public art directly.

Tree Plant. This fund receives deposits from PG&E to replace the cost of any trees that must be removed for electrical repairs or maintenance. The City will use these funds to plant trees elsewhere within city limits.
109

NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Habitat Conservation Program. Established to account for new development fees dedicated to habitat conservation as part of the San Mateo County San Bruno Mountain Habitat Conservation Plan.

The Plan is a landmark environmental regulatory document that aims to protect endangered butterfly and snake species native to San Bruno Mountain while allowing for the development of privately owned parcels within the HCP area. In Brisbane, the HCP area includes privately owned land in the Brisbane Acres subarea, Southwest Bayshore subarea, Northeast Ridge, Guadalupe Hills, and other hillside properties in the northwest Bayshore subarea.

SB1 Road Maintenance and Rehabilitation. Receives and disburses the City’s share of funding from California’s Road Repair and Accountability Act of 2017 (SB1). SB1 established fuel taxes and vehicle fees to fund local road maintenance, safety improvements and complete street improvements including facilities for bicycles and pedestrians. Revenues received before fiscal year 2021 were reported as part of Fund 200 (Gas Tax).

ARPA. The State of and Local Coronavirus Fiscal Recovery Funds legislation, part of the American Rescue Plan Act (ARPA) was signed into law by President Biden in March 2021. The bill established funds allocated to recovering from the pandemic and restoring the economy. The US Department of the Treasury is responsible for oversight and to administer these payments to the State of California for non-entitlement cities (population less than 50,000), which includes the City of Brisbane. The City was allocated a total of $1,117,402 to be paid in two separate and equal tranches in July of 2021 and 2022, respectively. All funds must be obligated by December 2024, and agencies have until December 2026 to fully expend their funds to use the funds for qualifying programs. This fund was created to monitor the payments received and related expenditures.

DEBT SERVICE FUNDS
Brisbane Public Financing Authority:
2006 Pension Obligation Bonds Fund. This fund accounts for the debt service for the 2006 Pension Obligation Bonds issued August 2006. These bonds were issued to refund a portion of the City’s obligations to PERS.
2001 Revenue Bonds, Series B Fund. This fund accounts for the debt service for the 2001 Revenue Bonds, Series B which were issued to acquire the City's Marina Boulevard and Lagoon Road Local Improvement District 79-1 and to refund certain outstanding revenue bonds issued by the Authority.
2005 Revenue Bonds, Series A Fund. This fund accounts for the City’s portion of debt service for the 2005 Revenues Bonds, Series A which were issued to refund the 1995 Certificates of Participation Bonds and to finance certain capital projects for the City. Debt service for a portion of these bonds is met from transfers from the Community Redevelopment Agency Project Area 2 and the Utility Fund where portions of the 1995 COP bonds proceeds were expended to finance capital improvements.
2013 Pension Side Fund Bonds Fund. This fund accounts for the debt service of the 2013 Pension Side Fund Bonds issued June 2013. These bonds were issued to pay the unfunded liability to CalPERS for the City’s Miscellaneous Pension side fund. 110

NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Brisbane – Guadalupe Valley Municipal Improvement Financing Authority:

Brisbane-Guadalupe Valley Municipal Improvement District Public Financing Authority Fund. This fund accounts for the debt service for the refunding of the 2005 BPFA Revenue Bonds, Series B. Those bonds were issued to finance City Hall seismic upgrades and other improvements. The debt service will be met with lease payments from the City to the Authority. 2017 Brisbane-Guadalupe Valley Municipal Improvement District Lease Refunding Fund.

This fund accounts for the debt service for the refunding of the 2009 BPFA Revenue Bonds, Series A. Those bonds were issued to finance City Hall seismic upgrades and other improvements.

The debt service will be met with lease payments from the City to the Authority. 2022 Brisbane-Guadalupe Valley Municipal Improvement District Public Financing Authority Fund. This fund accounts for the debt service for the 2022 Bank of the West Loan.

Those loan was issued to finance the building and land of the former Bank of America branch located at 70 Old County Road in Brisbane. The debt service will be met with lease payments from the City to the Authority.
2018 Library Construction Loan Debt Service Fund. This fund accounts for the debt service for the 2018 Library Construction Loan from the County of San Mateo. The Project currently includes construction and construction management of the new library. The debt service will be met with property tax allocations.

CAPITAL PROJECTS FUNDS
Facilities Construction Fund. As a condition of the final map approval for the Northeast Ridge development, the developer was required to improve a number of facilities including municipal buildings, local streets, downtown parking, future trails, fire buffers and construct a community swimming pool. Funds deposited for these projects have been placed in a capital projects fund and as separate projects move ahead with construction, applicable amounts of this fund are moved to a construction fund to further account for the cost of a particular project.

South Hill Capital Projects Fund. This fund was established in fiscal 2015 due to the sale of a portion of the former Southern Pacific rail spur to Sheng Kee Bakery. The funds are directed to be used for capital project.

Park Development Capital Projects Fund. As a condition of the Development Agreement between Opus and the City approved February 2, 2017 the City received back Parcel R on Sierra Point.

Additionally, Opus provided funds which were designated for public improvements on this parcel.

This fund is used to track those funds.
111

CITY OF BRISBANE

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
JUNE 30, 2023

SPECIAL REVENUE FUNDS
Sierra Point
Gas Landscape
Tax Measure A Measure W & Lighting
Cash and investments $466,706 $501,733 $192,798 $1,146,575 Interest receivable 2,093 2,250 865 5,142
Taxes receivable 11,153 17,659
Total Assets $479,952 $521,642 $193,663 $1,151,717
Accounts payable $23,108
Accrued payroll 2,982
Due to other funds
Deposits payable
Unearned revenue
Total Liabilities 26,090
Restricted $479,952 $521,642 $193,663 1,125,627
Assigned
Unassigned

Total Fund Balances 479,952 521,642 193,663 1,125,627
Total Liabilities and Fund Balances $479,952 $521,642 $193,663 $1,151,717

LIABILITIES
ASSETS

FUND BALANCE
112

SPECIAL REVENUE FUNDS
Traffic Fire Contract Public
Grants NPDES Congestion Relief Training Employees Arts
$63,363 $11,030 $3,431 $229,131 $2,324,494
284 49 15 1,028 10,425
$63,647 $11,079 $3,446 $230,159 $2,334,919
$4,018
8,780
$606
606 12,798
63,041 $11,079 $3,446 $230,159 $2,334,919
(12,798)
63,041 (12,798) 11,079 3,446 230,159 2,334,919
$63,647 $11,079 $3,446 $230,159 $2,334,919
(Continued)
113

CITY OF BRISBANE

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
JUNE 30, 2023

SPECIAL REVENUE FUNDS
SB1 Road
Habitat Maintenance
Tree Conservation and
Plant Program Rehabilitation ARPA
ASSETS
Cash and investments $12,973 $45,903 $96,568 $1,058,470 Interest receivable 58 206 433 4,747
Taxes receivable 9,720
Total Assets $13,031 $46,109 $106,721 $1,063,217

LIABILITIES
Accounts payable
Accrued payroll
Due to other funds
Deposits payable $44,291
Unearned revenue
Total Liabilities 44,291

FUND BALANCE
Restricted $13,031 1,818 $106,721 $1,063,217
Assigned
Unassigned

Total Fund Balances 13,031 1,818 106,721 1,063,217
Total Liabilities and Fund Balances $13,031 $46,109 $106,721 $1,063,217 114

DEBT SERVICE FUNDS
BrisbaneGuadalupe Valley 2017 BrisbaneMunicipal Guadalupe Valley Improvement Municipal
District Improvement
2006 Pension 2001 Revenue 2005 Revenue 2013 Pension Public District Obligation Bonds, Bonds, Side Fund Financing Lease
Bonds Series B Series A Bonds Authority Refunding
$21 $157,705
$21 $157,705
$4,130
$7,788 $1,010 $3,101
7,788 4,130 1,010 3,101
$21 153,575
(7,788) (1,010) (3,101)
(7,788) 21 153,575 (1,010) (3,101)
$21 $157,705
(Continued)
115

CITY OF BRISBANE

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
JUNE 30, 2023

DEBT SERVICE FUNDS CAPITAL PROJECT FUNDS
2022 BrisbaneGuadalupe Valley
Municipal
Improvement
District 2018
Public Library
Financing Construction Facilities
Authority Loan Construction South Hill
ASSETS
Cash and investments $1,050,307 $3,655,166 $165,884
Interest receivable 16,393 744
Taxes receivable
$1,050,307 $3,671,559 $166,628

LIABILITIES
Accounts payable 129,260
Accrued payroll
Due to other funds $101,008
Deposits payable $11,018
Unearned revenue
Total Liabilities 101,008 129,260 11,018

FUND BALANCE
Restricted 921,047
Assigned 3,660,541 $166,628
Unassigned (101,008)
Total Fund Balances (101,008) 921,047 3,660,541 166,628 Total Liabilities and Fund Balances $1,050,307 $3,671,559 $166,628 116

CAPITAL

PROJECT FUNDS
Total
Nonmajor
Park Governmental
Development Funds
$1,846,170 $13,028,428
8,280 53,012
38,532
$1,854,450 $13,119,972
$160,516
11,762
112,907
55,915
$527,901 527,901
527,901 869,001
7,222,958
1,326,549 5,153,718
(125,705)
1,326,549 12,250,971
$1,854,450 $13,119,972
117

CITY OF BRISBANE

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023

SPECIAL REVENUE FUNDS
Sierra Point
Gas Landscape
Tax Measure A Measure W & Lighting

GOVERNMENTAL REVENUES
Taxes and special assessments $233,081 $103,122 $556,847 Intergovernmental $127,897
Licenses, permits and fees
Use of money and property 5,399 10,432 1,651 19,734
Other revenues
Total Revenues 133,296 243,513 104,773 576,581

EXPENDITURES
Current:

General government
Public works 406,497
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 406,497

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 133,296 243,513 104,773 170,084

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (155,157)
Total Other Financing Sources (Uses) (155,157)
NET CHANGES IN FUND BALANCES 133,296 88,356 104,773 170,084 BEGINNING FUND BALANCES (DEFICITS) 346,656 433,286 88,890 955,543 ENDING FUND BALANCES (DEFICITS) $479,952 $521,642 $193,663 $1,125,627 118

SPECIAL REVENUE FUNDS
Traffic Fire Contract Public
Grants NPDES Congestion Relief Training Employees Arts
$44,962
$170,271
1,064
4,163 (4,675) $212 $65 $4,411 $24,341
967,235
174,434 41,351 212 65 4,411 991,576
565,644
565,644
174,434 (524,293) 212 65 4,411 991,576
523,270
(168,136)
(168,136) 523,270
6,298 (1,023) 212 65 4,411 991,576
56,743 (11,775) 10,867 3,381 225,748 1,343,343
$63,041 ($12,798) $11,079 $3,446 $230,159 $2,334,919
(Continued)
119

CITY OF BRISBANE

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023

SPECIAL REVENUE FUNDS
SB1 Road
Habitat Maintenance
Tree Conservation and
Plant Program Rehabilitation ARPA

GOVERNMENTAL REVENUES
Taxes and special assessments
Intergovernmental $107,161
Licenses, permits and fees
Use of money and property $249 $913 843 $7,572
Other revenues
249 913 108,004 7,572

EXPENDITURES
Current:

General government 37,800
Public works
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 37,800

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 249 913 108,004 (30,228)

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGES IN FUND BALANCES 249 913 108,004 (30,228)
BEGINNING FUND BALANCES (DEFICITS) 12,782 905 (1,283) 1,093,445 ENDING FUND BALANCES (DEFICITS) $13,031 $1,818 $106,721 $1,063,217 120

DEBT SERVICE FUNDS
BrisbaneGuadalupe Valley 2017 BrisbaneMunicipal Guadalupe Valley Improvement Municipal
District Improvement
2006 Pension 2001 Revenue 2005 Revenue 2013 Pension Public District Obligation Bonds, Bonds, Side Fund Financing Lease
Bonds Series B Series A Bonds Authority Refunding
$1
1 $382,000 245,000 $131,000
11,403 136,911 21,901
393,403 381,911 152,901
(393,403) (381,910) (152,901)
393,403 381,910 152,901
393,403 381,910 152,901
($7,788) $21 $153,575 (1,010) (3,101)
($7,788) $21 $153,575 ($1,010) ($3,101)
(Continued)
121

CITY OF BRISBANE

NON-MAJOR GOVERNMENTAL FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023

CAPITAL PROJECT FUNDS
2022 BrisbaneGuadalupe Valley
Municipal
Improvement
District 2018
Public Library
Financing Construction Facilities
Authority Loan Construction South Hill

GOVERNMENTAL REVENUES
Taxes and special assessments
Intergovernmental
Licenses, permits and fees
Use of money and property $70,360 $3,193
Other revenues
Total Revenues 70,360 3,193

EXPENDITURES
Current:

General government
Public works
Capital outlay
Debt service:

Principal $113,333
Interest and fiscal charges $233,627 14,735
Total Expenditures 233,627 128,068

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (233,627) (128,068) 70,360 3,193

OTHER FINANCING SOURCES (USES)
Transfers in 132,619
Transfers out
Total Other Financing Sources (Uses) 132,619
NET CHANGES IN FUND BALANCES (101,008) (128,068) 70,360 3,193 BEGINNING FUND BALANCES (DEFICITS) 1,049,115 3,590,181 163,435 ENDING FUND BALANCES (DEFICITS) ($101,008) $921,047 $3,660,541 $166,628

DEBT SERVICE FUNDS
122

CAPITAL

PROJECT FUNDS
Total
Nonmajor
Park Governmental
Development Funds
$938,012
405,329
1,064
$37,970 186,834
967,235
37,970 2,498,474
37,800
972,141
118,932 118,932
871,333
418,577
118,932 2,418,783
(80,962) 79,691
1,584,103
(323,293)
1,260,810
(80,962) 1,340,501
1,407,511 10,910,470
$1,326,549 $12,250,971
123

CITY OF BRISBANE

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023

SPECIAL REVENUE FUNDS

GAS TAX MEASURE A
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)

GOVERNMENTAL REVENUES
Taxes and special assessments $381,833 $233,081 ($148,752) Intergovernmental $116,892 $127,897 $11,005
Licenses, permits and fees
Use of money and property 5,399 5,399 10,432 10,432
Other revenues
Total Revenues 116,892 133,296 16,404 381,833 243,513 (138,320)

EXPENDITURES
Current:

General government
Public safety - police
Public works
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 116,892 133,296 16,404 381,833 243,513 (138,320)

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (155,157) (155,157)
Total Other Financing Sources (Uses) (155,157) (155,157) NET CHANGES IN FUND BALANCES $116,892 133,296 $16,404 $381,833 88,356 ($293,477) BEGINNING FUND BALANCES (DEFICITS) 346,656 433,286
ENDING FUND BALANCES (DEFICITS) $479,952 $521,642
124

SPECIAL REVENUE FUNDS

SIERRA POINT

MEASURE W LANDSCAPING & LIGHTING GRANTS
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $88,019 $103,122 $15,103 $590,000 $556,847 ($33,153)
$140,000 $170,271 $30,271
1,651 1,651 19,734 19,734 4,163 4,163
88,019 104,773 16,754 590,000 576,581 (13,419) 140,000 174,434 34,434 140,000 140,000
455,056 406,497 48,559
455,056 406,497 48,559 140,000 140,000
88,019 104,773 16,754 134,944 170,084 35,140 174,434 174,434 (168,136) (168,136)
(168,136) (168,136)
$88,019 104,773 $16,754 $134,944 170,084 $35,140 6,298 $6,298 88,890 955,543 56,743
$193,663 $1,125,627 $63,041
(Continued)
125

CITY OF BRISBANE

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023

SPECIAL REVENUE FUNDS
NPDES
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)

GOVERNMENTAL REVENUES
Taxes and special assessments $52,000 $44,962 ($7,038)
Intergovernmental
Licenses, permits and fees 2,000 1,064 (936)
Use of money and property (4,675) (4,675) $212 $212
Other revenues
Total Revenues 54,000 41,351 (12,649) 212 212

EXPENDITURES
Current:

General government
Public safety - police
Public works 320,333 565,644 (245,311)
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures 320,333 565,644 (245,311)

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (266,333) (524,293) (257,960) 212 212

OTHER FINANCING SOURCES (USES)
Transfers in 268,184 523,270 255,086
Transfers out
Total Other Financing Sources (Uses) 268,184 523,270 255,086 NET CHANGE IN FUND BALANCES $1,851 (1,023) ($2,874) 212 $212 BEGINNING FUND BALANCES (DEFICITS) (11,775) 10,867
ENDING FUND BALANCES (DEFICITS) ($12,798) $11,079
Congestion Relief
Traffic
126

SPECIAL REVENUE FUNDS
SB1 ROAD MAINTENANCE

PUBLIC ARTS FUND AND REHABILITATION ARPA
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $107,161 $107,161
$24,341 $24,341 843 843 $7,572 $7,572
967,235 967,235
991,576 991,576 108,004 108,004 7,572 7,572
37,800 (37,800)
37,800 (37,800)
991,576 991,576 108,004 108,004 (30,228) (30,228)
991,576 $991,576 108,004 $108,004 (30,228) ($30,228)
1,343,343 (1,283) 1,093,445
$2,334,919 $106,721 $1,063,217
(Continued)
127

CITY OF BRISBANE

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023
2006 PENSION 2001 REVENUE

OBLIGATION BONDS BONDS, SERIES B
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)

GOVERNMENTAL REVENUES
Taxes and special assessments
Intergovernmental
Licenses, permits and fees
Use of money and property
Other revenues
Total Revenues

EXPENDITURES
Current:

General government
Public safety - police
Public works
Capital outlay
Debt service:

Principal
Interest and fiscal charges
Total Expenditures

EXCESS (DEFICIENCY) OF REVENUES

OVER EXPENDITURES

OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)

NET CHANGE IN FUND BALANCES
BEGINNING FUND BALANCES (DEFICITS) ($7,788) $21
ENDING FUND BALANCES (DEFICITS) ($7,788) $21

DEBT SERVICE FUNDS
128

DEBT SERVICE FUNDS
2005 REVENUE 2013 PENSION SIDE FUND

BONDS, SERIES A BONDS
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $1 $1
11 $382,000 $382,000 $417,000 245,000 172,000
35,860 11,403 $24,457 66,035 136,911 (70,876)
417,860 393,403 24,457 483,035 381,911 101,124
(417,860) (393,403) 24,457 (483,035) (381,910) 101,125
393,403 393,403 483,035 381,910 (101,125)
393,403 393,403 483,035 381,910 (101,125)
($24,457) $24,457
$153,575 (1,010) (3,101)
$153,575 ($1,010) ($3,101)
(Continued)

AUTHORITY

PUBLIC FINANCING

BRISBANE-GUADALUPE VALLEY

MUNICIPAL IMPROVEMENT DISTRICT
129

CITY OF BRISBANE

BUDGETED NON-MAJOR FUNDS

COMBINING SCHEDULE OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2023

DEBT SERVICE FUNDS
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)

GOVERNMENTAL REVENUES
Taxes and special assessments
Intergovernmental
Licenses, permits and fees
Use of money and property
Other revenues
Total Revenues

EXPENDITURES
Current:

General government
Public safety - police
Public works
Capital outlay
Debt service:

Principal $106,090 $131,000 ($24,910)
Interest and fiscal charges 2,335 21,901 (19,566) $233,627 ($233,627) Total Expenditures 108,425 152,901 (44,476) 233,627 (233,627)

EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (108,425) (152,901) (44,476) (233,627) (233,627)

OTHER FINANCING SOURCES (USES)
Transfers in 152,901 152,901 132,619 132,619
Transfers out
Total Other Financing Sources (Uses) 152,901 152,901 132,619 132,619 NET CHANGE IN FUND BALANCES $44,476 ($44,476) (101,008) ($101,008)

BEGINNING FUND BALANCES (DEFICITS)
ENDING FUND BALANCES (DEFICITS) ($101,008)
2017 BRISBANE-GUADALUPE VALLEY

MUNICIPAL IMPROVEMENT DISTRICT

PUBLIC FINANCING

AUTHORITY
2022 BRISBANE-GUADALUPE VALLEY

MUNICIPAL IMPROVEMENT DISTRICT

PUBLIC FINANCING

AUTHORITY
130

2018

LIBRARY

CONSTRUCTION
LOAN
Variance
Positive
Budget Actual (Negative)
$113,333 $113,333
14,735 ($14,735)
113,333 128,068 (14,735)
(113,333) (128,068) (14,735)
($113,333) (128,068) ($14,735)
1,049,115
$921,047

DEBT SERVICE FUNDS
131

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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.
133

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 (DEFICITS)
Unrestricted (99,966) 29,491 (1,671) (776,385)
Total Net Position (Deficits) ($99,966) $29,491 ($1,671) ($776,385) 134

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)
135

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) 136

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)
137

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 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
Interfund receipts 211,143
Interfund payments (10,168)
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) 138

Vehicle
Workers' OPEB Replacement 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)
48,714 541,554 801,411
(10,168)
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)
139

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CUSTODIAL FUNDS
CUSTODIAL FUNDS included the following funds:

Developer Deposits Fund
Other Custodial Funds
Northeast Ridge Assessment District 2013 Refunding Bonds Fund HCP Sierra Tower Development
Peninsula Corridor Electrification Project Fund
San Mateo County Training Consortium Fund
Orchard Partners Quarry Development Fund
100 Harold Road Improvements Fund
BDI 9000 Marina Fund
141

CITY OF BRISBANE

CUSTODIAL FUNDS

COMBINING STATEMENT OF NET POSITION
JUNE 30, 2023
Custodial Funds
Northeast Ridge
Developer Other Assessment District HCP
Deposits Custodial 2013 Refunding Sierra Tower
Fund Funds Bonds Fund Development
ASSETS
Cash and investments $10,026 $23,559
Accounts receivable, net $88,811
Interest receivable 255 5
Total Assets 89,066 10,031 23,559

LIABILITIES
Accounts payable 1,207,795 $4,136
Deposits payable 2,469,967 8,127 (4,136)
Total Liabilities 3,677,762 8,127

NET POSITION (DEFICIT)
Restricted for organizations and other governments ($3,588,696) $1,904 $23,559 142

Custodial Funds
Peninsula San Mateo Orchard
Corridor County Partners Quarry 100 Harold Road BDI 9000 Electrification Training Consortium Development Improvements Marina Project Fund Fund Fund Fund Fund Total
$26,791 $68,856 $57,519 $42,500 $229,251
3,255 92,066
120 380
26,911 72,111 57,519 42,500 321,697
12,115 1,224,046
25,000 65,660 42,500 2,607,118
25,000 12,115 65,660 42,500 3,831,164
$1,911 $59,996 ($8,141) ($3,509,467)
143

CITY OF BRISBANE

COMBINING STATEMENT OF CHANGES IN NET POSITION

CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
Custodial Funds
Northeast Ridge
Developer Other Assessment District HCP
Deposits Custodial 2013 Refunding Sierra Tower
Fund Funds Bonds Fund Development

ADDITIONS
Investment income $114
Other revenue $166,343
Total additions 166,343 114

DEDUCTIONS
Professional services 2,178,708 $146,996
Total deductions 2,178,708 146,996
CHANGES IN NET POSITION (2,012,365) 114 (146,996)
(1,576,331) 1,790 $23,559 146,996
ENDING NET POSITION (DEFICIT) ($3,588,696) $1,904 $23,559

BEGINNING NET POSITION (DEFICIT)
144

Custodial Funds
Peninsula San Mateo Orchard
Corridor County Partners Quarry 100 Harold Road BDI 9000 Electrification Training Consortium Development Improvements Marina Project Fund Fund Fund Fund Fund Total
$516 $630
$122,042 288,385
516 122,042 289,015
73,685 2,399,389
73,685 2,399,389
516 48,357 (2,110,374)
1,395 11,639 ($8,141) (1,399,093)
$1,911 $59,996 ($8,141) ($3,509,467)
145

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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 (City), California, as of and for the year ended June 30, 2023, and have issued our report thereon dated December 5, 2025.

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.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies as listed on the Schedule of Material Weaknesses included as part of our separately issued Memorandum on Internal Control dated December 5, 2025 to be a material weakness, which is an integral part of our audit and should be read in conjunction with this report.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies as listed on the Schedule of Significant Deficiencies included as part of our separately issued Memorandum on Internal Control dated December 5, 2025 to be significant deficiencies, which is an integral part of our audit and should be read in conjunction with this report. 147

Report on 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 December 5, 2025, which is an integral part of our audit and should be read in conjunction with this report.

City’s Response to Findings
Government Auditing Standards require the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in our separately issued Memorandum on Internal Control dated December 5, 2025, 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 the response.

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
December 5, 2025
148

Contents Page
Financial Trends 151-157
Revenue Capacity 158-164
Debt Capacity 165-170
Demographic and Economic Information 171-175
Operating Information 176-179
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt, and the City’s ability to issue additional debt in the future.

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

STATISTICAL INFORMATION
This part of the City of Brisbane’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the City’s overall financial health.

These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax.
149

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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental activities
Invested in capital assets, net of related debt $46,027 $47,358 $47,876 $44,304 $43,424 $50,918 $54,101 $55,504 $53,735 $53,119Restricted 12,292 12,698 6,934 6,373 8,314 9,841 10,470 10,688 13,862 15,275 Unrestricted 10,882 (5,099) (3,507) 945 (3,630) (9,112) (12,721) (9,339) 12,570 (11,300) Total governmental activities net position $69,201 $54,957 $51,303 $51,622 $48,108 $51,647 $51,850 $56,853 $55,027 $57,094Business-type activities Invested in capital assets, net of related debt $26,368 $26,815 $28,599 $29,708 $28,342 $29,149 $27,898 $27,156 $27,057 $26,698Restricted 2,251 2,251 2,251 759 759 759 758 759 759 759 Unrestricted 3,037 2,092 (161) 170 3,936 3,423 5,194 5,733 4,138 3,636 Total business-type activities net position $31,656 $31,158 $30,689 $30,637 $33,037 $33,331 $33,850 $33,648 $31,954 $31,093Primary government Invested in capital assets, net of related debt $72,395 $74,173 $76,475 $74,012 $71,766 $80,067 $81,999 $82,660 $80,792 $79,817Restricted 14,543 14,949 9,185 7,132 9,073 10,600 11,228 11,447 14,621 16,034 Unrestricted 13,919 (3,007) (3,668) 1,115 305 (5,689) (7,527) (3,606) (8,432) (7,664) Total primary government net position $100,857 $86,115 $81,992 $82,259 $81,144 $84,978 $85,700 $90,501 $86,981 $88,187

CITY OF BRISBANE
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(Dollars in thousands)
$(20,000) $(40,000)
$-
$80,000 $60,000 $40,000 $20,000
$120,000 $100,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Net Investment in Capital Assets Restricted Unrestricted 151

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
ExpensesGovernmental Activities:

General Government $4,485 $4,195 $5,357 $5,718 $7,446 $6,871 $9,780 $11,358 $8,694 $11,022Public Safety - police 3,314 3,918 4,189 4,758 5,225 5,694 5,313 4,789 6,108 5,689Public Safety - fire 2,528 2,602 2,782 2,812 3,576 3,661 3,629 3,838 5,763 3,864Public Works 3,378 3,684 3,542 3,734 3,883 4,094 5,061 4,776 4,267 4,804Parks and Recreation 1,802 1,955 2,023 2,338 2,388 2,393 2,699 1,622 2,648 3,069 Interest on Long-Term Debt (Unallocated) 1,245 999 647 433 630 419 294 248 185 261 Total Governmental Activities Expenses 16,752 17,353 18,540 19,793 23,148 23,132 26,776 26,631 27,665 28,709 Business-Type Activities:

Utility 4,344 4,656 5,654 5,442 5,368 6,261 5,952 6,667 7,502 7,425Marina 1,438 A 1,623 A 1,808 A 1,940 1,662 1,621 1,715 1,317 1,647 1,646 Total Business-Type Activities Expenses 5,782 6,279 7,462 7,382 7,030 7,882 7,667 7,984 9,149 9,071 Total Primary Government Expenses $22,534 $23,632 $26,002 $27,175 $30,178 $31,014 $34,443 $34,615 $36,814 $37,780Program RevenuesGovernmental Activities:

Charges for Services:

General Government $3,803 $4,635 $5,226 $5,319 $6,517 $6,959 $8,070 $9,515 $8,339 $9,537Public Safety - police 151 54 60 52 58 127 56 46 131 61 Public Safety - fire 128 179 275 315 714 499 463 1,453 1,063 587Public Works 3,252 3,115 1,120 1,408 1,179 1,382 990 952 466 549 Parks and Recreation 506 526 571 597 588 667 483 317 666 809 Operating Grants and Contributions 88 117 158 209 342 624 332 1,055 1,214 1,373 Capital Grants and Contributions 1,396 930 352 152 238 88 225 507 - 27 Total Government Activities Program Revenues 9,324 9,556 7,762 8,052 9,636 10,346 10,619 13,845 11,879 12,943 Business-Type Activities:

Charges for Services:

Utility 5,466 5,764 5,276 5,717 8,085 6,009 6,049 5,681 5,473 5,923 Parks and Recreation 1,614 A 1,529 A 1,652 A 1,705 2,206 2,099 2,293 2,339 2,303 2,318 Capital Grants and Contributions - - - 456 - - - - - -
Total Business-Type Activities Program Revenue 7,080 7,293 6,928 7,878 10,291 8,108 8,342 8,020 7,776 8,241Total Primary Government Program Revenues $16,404 $16,849 $14,690 $15,930 $19,927 $18,454 $18,961 $21,865 $19,655 $21,184Net (Expense)/RevenueGovernmental Activities ($7,428) ($7,797) ($10,778) ($11,741) ($13,512) ($12,786) ($16,157) ($12,786) ($15,786) ($15,766)Business-Type Activities 1,298 1,014 (534) 496 3,261 226 675 36 (1,373) (830)Total Primary Government Net Expense ($6,130) ($6,783) ($11,312) ($11,245) ($10,251) ($12,560) ($15,482) ($12,750) ($17,159) ($16,596) (continued)

CITY OF BRISBANE
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Dollars in thousands)
152

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Revenues and Other Changes
in Net Assets
Governmental Activities:

Taxes:

Property Taxes $2,816 $3,162 $3,258 $3,342 $3,662 $4,372 $4,711 $5,513 $5,257 $6,201Sales Taxes 2,529 3,333 3,843 4,408 4,678 5,609 6,640 7,652 5,792 6,406Motor Vehicle In-Lieu - - - - - - - - - - Transient Occupancy Tax 2,038 2,447 2,786 2,768 2,886 2,890 2,072 850 1,653 2,151Business License Tax - - - - - - - - - - Other Taxes 649 909 1,056 1,423 1,118 2,243 1,713 1,626 1,635 2,383 Developer Contributions - - - - - - - - - -
Interest Earnings 947 - 182 100 106 704 356 288 (426) 494Miscellaneous 335 - 48 14 23 422 756 1,730 33 172 Gain on sale of land held - - - - - - - 131Transfers, net 4,914 681 54 5 120 85 111 (2) 16 29 Extraordinary Item - - - - - - - - - - Contribution from Successor Agency 2,512 - - - - - - - - - Special Item: Gain on Early Retirement of Debt 3,491 - - - - - - - - - Special Item: Successor Agency Loan Write-off - - (4,099) - - - - - - - Total Government Activities 20,231 10,532 7,128 12,060 12,593 16,325 16,359 17,788 13,960 17,836Business-Type Activities:

Other Taxes 30 30 30 30 81 33 32 35 35 35Interest Earnings 55 51 88 (574) (387) 60 (135) (334) (401) (97)Miscellaneous - - - - - - - - - - Developer Contribution - - - - - 60 60 60 60 60 Intergovernmental - - - - - - - - - -
Transfers and Other (4,914) (681) (54) (5) (120) (85) (111) 2 (16) (29) Total Business-Type Activities (4,829) (600) 64 (549) (426) 68 (154) (237) (322) (31) Total Primary Government $15,402 $9,932 $7,192 $11,511 $12,167 $16,393 $16,205 $17,551 $13,638 $17,805Change in Net PositionGovernmental Activities $12,803 $2,735 ($3,650) $319 ($919) $3,539 $202 $5,002 ($1,826) $2,070Business-Type Activities (3,531) 414 (470) (53) 2,835 294 521 (201) (1,695) (861) Total Primary Government $9,272 $3,149 ($4,120) $266 $1,916 $3,833 $723 $4,801 ($3,521) $1,209 (A) In fiscal year 2014, the City reorganized its funds and the former Parks and Recreation Fund was renamed the Marina Fund. The Parks and Recreation fund was then combined with the General Fund.
(continued)

CITY OF BRISBANE
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Dollars in thousands)
153

CITY OF BRISBANE
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(In thousands)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund
Reserved
UnreservedNonspendable $3,384 $3,291 $3,315 $2,594 $2,437 $1,818 $3,968 $3,844 $3,752 $3,584Restricted - - - 107 114 530 1,162 1,414 1,225 1,384 Assigned 274 295 221 253 274 821 842 842 842 842
Unassigned 8,484 8,957 7,745 8,702 8,628 7,949 6,465 11,436 9,382 9,714 Total General Fund $12,142 $12,543 $11,281 $11,656 $11,453 $11,118 $12,437 $17,536 $15,201 $15,524 All other governmental funds
Nonspendable 154 $80Restricted $9,428 $9,658 $3,965 3,861 6,061 $6,725 $6,683 $6,777 $10,241 $11,699 Assigned 2,982 3,666 3,762 3,813 3,837 3,914 3,998 5,325 5,258 5,153 Unassigned (312) (488) (561) (1,331) (1,609) (1,244) (4,708) (6,503) (6,525) (6,964) Total all other governmental funds $12,098 $12,836 $7,320 $6,423 $8,289 $9,395 $5,973 $5,599 $8,974 $9,888Source: City of Brisbane Annual Comprehensive Financial Report 154

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Fiscal Year Ended June 30, 2023
2014 2015 2016 2017
Revenues
Taxes and special assessments $9,501 $11,258 $11,400 $12,069 Intergovernmental 360 665 420 651
Licenses, permits, and fees 4,162 3,978 3,234 4,312
Charges for services 2,579 2,090 2,158 2,507
Fines and forfeitures 60 40 51 48
Use of money and property 1,026 255 269 156
Other revenues 452 1,390 735 552
Total Revenues 18,140 19,676 18,267 20,295
Expenditures
Current:

General government 3,570 3,780 4,472 4,647
Public safety-police 3,038 3,611 4,071 4,390
Public safety-fire 2,247 2,300 2,586 2,402
Public works 2,473 2,748 2,896 2,972
Parks and recreation 1,630 A 1,775 1,821 2,139
Library 27 28 28
Capital outlay 1,083 1,232 838 2,085
Debt service:

Principal repayment 16,135 6,938 2,546 1,036
Interest and fiscal charges 1,347 1,036 686 446
Total Expenditures 31,550 23,448 19,944 20,117
Excess (deficiency) of revenues over
(under) expenditures (13,410) (3,772) (1,677) 178
Other Financing Sources (Uses)
Premium on refunding bonds issued 1,004 88
Proceeds from sale of property/assets - 292 - -
Proceeds from long-term debt 63 5,470 - -
Payment to refunded debt escrow agent - - - -
Transfer in 1,672 7,800 2,369 2,131
Transfer out (1,946) (8,740) (3,371) (2,831)
Extraordinary item - - - -
Special item - - (4,099) -
Total other financing sources (uses) 793 4,910 (5,101) (700) Net change in fund balances ($12,617) $1,138 ($6,778) ($522) Debt service as a percentage of
noncapital expenditures 57.4% 35.9% 16.9% 8.2%
(A) In fiscal year 2014, the City reorganized its funds and the former Parks and Recreation Fund was renamed the Marina Fund. The Parks and Recreation fund was then combined with the General Fund.

CITY OF BRISBANE
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(In thousands)
156

2018 2019 2020 2021 2022 2023
$12,873 $14,606 $15,261 $15,744 $14,685 $17,333
511 919 1,229 1,626 1,154 789
4,198 6,623 5,810 6,988 5,643 7,521
2,751 3,662 3,132 3,461 3,380 3,620
50 66 43 31 110 51
175 855 508 352 (338) 597
1,190 974 838 3,307 1,216 1,399
21,748 27,705 26,821 31,509 25,850 31,310
5,534 5,823 7,299 7,728 8,487 10,271
4,628 4,917 4,991 4,804 5,287 5,899
3,035 3,357 3,535 3,829 4,517 4,260
3,245 3,637 3,758 3,848 4,082 3,939
2,192 2,200 2,504 1,622 2,455 2,869
- - - - -
802 4,243 4,674 3,707 5,125 6,560
1,147 649 924 858 846 885
485 422 298 253 318 421
21,068 25,248 27,983 26,649 31,117 35,104
680 2,457 (1,162) 4,860 (5,266) (3,793)
- - - - - -
- - - 131 4,355 -
3,330 - - - 2,200 -
(1,738) - - - - 5,545
2,112 5,331 2,087 2,418 2,451 1,907
(2,722) (7,017) (3,028) (2,684) (2,699) (2,420)
- - - - - -
- - - - - -
982 (1,686) (941) (135) 6,307 5,032
$1,662 $771 ($2,103) $4,725 $1,041 $1,239

8.1% 5.1% 5.2% 4.6% 4.2% 4.5%
157

Governmental Activities Tax Revenues by Source
Business
Fiscal Property Sales Gas Franchise Transfer TOT License Year Tax 1 Tax 2 Tax 3 Tax Tax Tax Tax Total
2014 $ 2,725 $ 2,701 $ 144 $ 334 $ 76 $ 2,038 $ 2,792 $ 10,810 2015 3,163 3,333 118 531 68 2,447 2,746 12,406
2016 3,183 3,843 108 708 75 2,786 2,580 13,283
2017 3,294 4,597 97 737 48 2,768 3,135 14,676
2018 3,520 4,887 119 849 129 2,886 2,653 15,042
2019 5,001 5,841 187 874 208 2,890 4,995 19,995
2020 5,160 6,863 191 900 177 2,072 3,950 19,313
2021 5,433 7,935 107 863 66 850 4,582 19,834
2022 5,167 6,197 114 1,023 75 1,648 4,345 18,569
2023 6,128 6,793 128 1,149 58 2,151 5,715 22,122
1 2 Sales tax includes Measure A sales tax, Measure W sales tax, Public Safety Sales Tax, General Sales Taxes and Sales Tax/Property Tax Swap
31 Gas tax shown in ACFR as intergovernment, and Business License Tax as Licenses and Permits.

Source: City of Brisbane
Property Tax Includes Prior Taxes, Supplemental Taxes, Property Tax/VLF swap, ERAF and Property Tax from RDA (amounts expressed in thousands)
City of Brisbane
Last Ten Fiscal Years
(modified accrual basis of accounting)
158

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City of Brisbane
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Taxable
Fiscal Less: Assessed
Year Secured Unsecured Exemptions Value
2014 $ 1,408,674 $ 184,241 $ 12,208 $ 1,580,706
2015 1,516,681 180,385 10,908 1,686,157
2016 1,624,974 187,517 12,258 1,800,233
2017 1,718,428 185,541 11,374 1,892,596
2018 1,845,340 206,181 13,112 2,038,409
2019 2,043,149 205,714 13,086 2,235,777
2020 2,210,071 240,078 15,892 2,434,258
2021 2,571,845 238,376 28,261 2,781,960
2022 2,961,771 266,493 28,486 3,199,778
2023 3,483,349 289,581 29,299 3,743,631
Source: County Assessment Rolls
(amounts expressed in thousands)
City
Note: The General Property Tax Rate is established at $1.00 per $100.00 of assessed value per Article XIII of the California Constitution. The allocation of the property taxes to various taxing agencies including cities, counties, school districts and other special districts is based on the formula determined by the California State Legislature.

California property tax assessments are "acquisition" based, rather than cyclical based. In California, the property tax system is acquisition based, meaning that all real property is assessed upon acquisition or when newly constructed, and assessed at a ratio of 100% of fair market value as of the event date. After the acquisition or new construction basis is determined, year to year increases in assessed value are limited to no more than 2%. In the event of an economic downturn, real property is assessed at the lower of its acquisition basis, increased by the maximum of 2% per year or the fair market value as of January 1, which is lower. 160

Taxable Total
Less: Assessed Direct Tax
Secured Unsecured Exemptions Value Rate

1.1048

1.0991

1.1080

1.1282

1.1276

1.1126

1.1267

1.1543

1.1190

1.1102
Redevelopment Agency
161

City of Brisbane
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
Total
San Mateo Brisbane Jefferson Union San Mateo Direct &
Fiscal County as Elementay High School Community Overlapping Year Distributor School District District College Rates 2014 1.0000 0.0280 0.0574 0.0194 1.1048
2015 1.0000 0.0271 0.0530 0.0190 1.0991
2016 1.0000 0.0247 0.0583 0.0250 1.1080
2017 1.0000 0.0235 0.0800 0.0247 1.1282
2018 1.0000 0.0225 0.0816 0.0235 1.1276
2019 1.0000 0.0212 0.0739 0.0175 1.1126
2020 1.0000 0.0190 0.0811 0.0266 1.1267
2021 1.0000 0.0388 0.0942 0.0213 1.1543
2022 1.0000 0.0313 0.0650 0.0227 1.1190
2023 1.0000 0.0320 0.0589 0.0193 1.1102
Notes:

Source: California Municipal Statistics
School District
Under constitutional Amendment (Proposition 13) passed by voters in the State of California in June 1978, the tax rate (excluding bonded debt) is frozen at 1% of the full market value of the property. This tax is collected by the County Tax Collector and distributed on a formula determined by the State Legislature. Local agencies levy only the tax rate for general obligation bonds, or in excess of 1% if two-thirds of the voters in the area authorize such a rate increase. All tax levies include Homeowner's Property Tax Relief and Business Inventory Property Tax Relief. 162

City of Brisbane
Principal Property Taxpayers
Current Year and Ten Years Ago
(amounts expressed in thousands)
% of Total % of Total
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value 1 Value Rank Value 2
Slough Brisbane LLC $ 306,303 1 10.40% $42,453 5 3.02%
HCP Life Science REIT Inc. 240,656 2 8.17%
DCT Valley Dr CA LLP 124,790 3 4.24% 60,261 2 4.29%
Oyster Point Properties Inc. 121,192 4 4.12% 104,440 1 7.44% BMR Bayshore Blvd LLC 117,353 5 3.99% 24,353 10 1.74%
PPF OFF 7000 Marina Blvd. LP 80,941 6 2.75%
IAC San Francisco LLC 67,528 7 2.29% 58,193 3 4.15%
M & L Associates 58,286 8 1.98%
Summit Hospitality 114 LLC 45,537 9 1.55%
BP3 SF4 1000 Marina LLC 40,843 10 1.39%
Prologis USLV SUBREIT 4 LLC 29,754 11 1.01%
SNH Brisbane CA LLC 28,413 12 0.97%
CP6BT LLC 23,374 13 0.79%
BRE SH Brisbane Owner LLC 23,208 14 0.79%
BP3 SF5 3000 3500 Marina LLC 22,215 15 0.75%
Harrison 325 LP 19,075 16 0.65%
Valley 325 LP 18,938 17 0.64%
LYF Investment Group LLC 16,830 18 0.57%
Recology Properties Inc 16,382 19 0.56%
South Hill 99 LP 15,504 20 0.53%
2000 Sierra Point Parkway LLC 42,955 4 3.06%
DMARC 2006 CD2 Marina Office LP 25,400 9 1.81%
Diamond Marina LLC 30,692 7 2.19%
Fund VIII 1000 Marina LLC 26,400 8 1.88%
William D. and C.A. Spencer Trust 38,963 6 2.78%
Barulich Properties LLC 13,128 14 0.94%
Brisbane Lodging LP 13,733 13 0.98%
Tuntex Properties Inc. 18,649 11 1.33%
BRE SH Brisbane Owner LLC 16,310 12 1.16%
Rolling Frito-Lay Sales 11,731 15 0.84%
SFPP 11,396 16 0.81%
150 Spear Street Associates 11,122 17 0.79%
WVP Bay Tech LLC 10,499 18 0.75%
Sierra Hotel Management Corp 19 8,679 0.71%
Sierra Point Investors LLC 20 8,665 0.60%
Total $ 1,417,122 48.14% 578,022 $ 41.25%
Source:

CA Municipal Statistics
(1) 2022-2023 Local Secured Assessed Valuation: $ 2,944,014 (2) 2013-2014 Local Secured Assessed Valuation: $ 1,403,615 2023 2014
163

City of Brisbane
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
Total Tax Collections in
Fiscal Levy for Subsequent
Year Fiscal Year Amount Percentage Years1 Amount Percentage 2014 2,673.12 $ 2,673.12 $ 100% n/a 2,673.12 $ 100%
2015 2,838 2,838 100% n/a 2,838 100%
2016 3,010 3,010 100% n/a 3,010 100%
2017 3,015 3,015 100% n/a 3,015 100%
2018 3,340 3,340 100% n/a 3,340 100%
2019 3,978 3,978 100% n/a 3,978 100%
2020 4,283 4,283 100% n/a 4,283 100%
2021 5,532 5,532 100% n/a 5,532 100%
2022 5,277 5,277 100% n/a 5,277 100%
2023 6,221 6,221 100% n/a 6,221 100%
1 Teeter Plan
Source: City of Brisbane
Collected within the
Fiscal Year of the Levy1 Total Collections to Date
Property Tax Includes Prior Taxes, Supplemental Taxes, Property Tax/VLF swap, ERAF and Property Tax from RDA 164

City of Brisbane
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount) Tax Other Utility Total Percentage
Fiscal Revenue Allocation Long-Term Revenue Capital Primary of Personal Per Year Bonds Bonds Debt Bonds Leases Government Income Capita 2014 10,237 $ - $ 4,086 $ 3,474 $ 22 $ 17,818 $ n/a 3,986 $ 2015 9,274 - 3,581 12,484 - 25,339 n/a 5,529
2016 7,230 - 3,021 12,314 - 22,565 n/a 4,847
2017 6,815 - 2,406 11,890 - 21,111 n/a 4,523
2018 6,420 - 3,466 11,266 83 21,234 n/a 4,529
2019 6,089 - 3,172 10,254 57 19,571 n/a 4,172
2020 5,700 - 2,615 9,881 30 18,226 n/a 3,934
2021 5,266 - 2,160 9,130 2 16,558 n/a 3,413
2022 4,901 - 6,032 8,340 - 19,273 n/a 4,129
2023 4,525 - 5,523 7,523 - 17,571 n/a 3,694
Note:

Governmental Activities Business-Type Activities
Personal Income is for San Mateo County because City information is not available. As such, calculating a percentage would not be valuable for Brisbane trend data.

Details regarding the city's outstanding debt can be found in the notes to the financial statements.
165

Ratios of General Bonded Debt Outstanding
Gross Less: Amounts Percent of
Fiscal Bonded Available in Debt Assessed Per
Year Debt Service Fund Total Value1 Capita
2014 $ 11,706 $ 357 $ 11,350 0.72% 2539.04%
2015 11,084 2 307 10,777 0.64% 2351.62%
2016 10,139 236 9,903 0.55% 2127.39%
2017 9,124 220 8,904 0.47% 1907.53%
2018 9,729 12 9,717 0.48% 2072.25%
2019 9,101 0 9,101 0.41% 1940.08%
2020 8,198 0 8,198 0.34% 1769.55%
2021 7,362 0 7,362 0.26% 1517.62%
2022 6,773 0 6,773 0.21% 1450.94%
2023 10,013 0 10,013 0.27% 2105.34%
General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). 2 Restated
(amounts expressed in thousands, except per capita amount) City of Brisbane
Last Ten Fiscal Years
1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California
166

Direct and Overlapping Governmental Activities Debt
2022-23 Assessed Valuation: $3,204,226,027
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable Debt
Overlapping Tax and Assessment Debt:

San Mateo Community College District $ 708,837,622 1.111% $ 7,875,186 Jefferson Union High School District 315,253,562 11.759% 37,070,666 Bayshore School District 9,020,000 17.331% 1,563,256
Brisbane School District 30,481,439 60.966% 18,583,314
Total Gross Overlapping Tax and Assessment Debt 1,063,592,623 65,092,422 Direct and Overlapping General Fund Debt:

San Mateo County General Fund Obligations $ 589,931,687 1.111% $ 6,554,141 San Mateo County Board of Education Certificates of Participation 6,120,000 1.111% 67,993 Jefferson Union High School District General Fund Obligations 47,490,000 11.759% 5,584,349 City of Brisbane General Fund Obligations 8,880,000 100.000% 8,880,000 San Mateo County Mosquito and Vector Control District General Fund Obligations 3,617,831 1.111% 40,194 Total Direct and Overlapping General Fund Debt 656,039,518 $ 21,126,677 Overlapping Tax Increment Debt (Successor Agency):

Tax Allocation Bonds $ 5,105,000 100.000% $ 5,105,000
$ 5,105,000
Total Direct Debt $ 8,880,000
Total Overlapping Debt $ 82,444,099
Combined Total Debt $ 91,324,099 1
Source: California Municipal Statistics Inc
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Brisbane. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by residents and businesses should be taken into account.

However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.

City of Brisbane
As of June 30, 2023
(amounts expressed in thousands)
1 Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. 167

City of Brisbane
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
2014 2015 2016 2017
Debt Limit 59,474 $ 63,551 $ 67,829 $ 71,289 $
Total net debt applicable to limit 11,350 10,777 9,903 8,904 Legal debt margin $ 48,124 $ 52,774 $ 57,926 $ 62,384
Total net debt applicable to the limit
as a percentage of debt limit 19.08% 16.96% 14.60% 12.49% Legal Debt Margin Calculation for Fiscal Year 2021:

Assessed value1 $ 1,694,694 1,585,973 $ 1,808,762 $ 1,901,034 $ Add back: exempt real property1 - - - -
Total assessed value1 $ 1,694,694 1,585,973 $ 1,808,762 $ 1,901,034 $ Debt limit (3.75% of total assessed value) $ 59,474 $ 63,551 $ 67,829 $ 71,289 Debt applicable to limit:

General bonded debt 11,706 11,084 10,139 9,124
Less: Amount set aside for repayment of
general bonded debt 357 307 236 220
Total net debt applicable to limit $ 11,350 $ 10,777 $ 9,903 $ 8,904 Legal debt margin $ 48,124 $ 52,774 $ 57,926 $ 62,384
1 Source: California Municipal Statistics Inc
City of Brisbane has no general obligation bonds.

Note: Under state finance law, the City of Brisbane'
outstanding debt should not exceed 3.75 percent of total assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.

Assessed Value excludes incremental assessed valuation
applicable to the Brisbane Community Redevelopment
Fiscal Year Ending
168

2018 2019 2020 2021 2022 2023
$ 76,534 $ 84,756 $ 91,492 $ 104,530 $ 111,432 $ 120,158 9,717 9,101 8,198 7,362 6,773 (6,773)
$ 66,817 $ 75,655 $ 83,294 $ 97,168 $ 104,659 $ 126,931

12.70% 10.74% 8.96% 7.04% 6.08% -5.64%
$ 2,040,900 $ 2,260,160 $ 2,439,789 $ 2,787,459 $ 2,971,524 $ 3,204,226 - - - - - -
$ 2,040,900 $ 2,260,160 $ 2,439,789 $ 2,787,459 $ 2,971,524 $ 3,204,226 $ 76,534 $ 84,756 $ 91,492 $ 104,530 $ 111,432 $ 120,158 9,729 9,101 8,198 7,362 6,773 -
12 - - - - 6,773
$ 9,717 $ 9,101 $ 8,198 $ 7,362 $ 6,773 $ (6,773)
$ 66,817 $ 75,655 $ 83,294 $ 97,168 $ 104,659 $ 126,931 Fiscal Year Ending
169

City of Brisbane
Pledged Revenue Coverage
Last Ten Fiscal Years
(amounts expressed in thousands)
Less: Net
Gross Operating Available Coverage
Fiscal Year Revenues Expenses Revenue Principal Interest Total % 2014-2015 $ 5,539 $ 3,886 $ 1,653 $ - -$ -$
2015-2016 5,353 4,590 763 170 241 411 185.75%
2016-2017 5,754 4,832 921 305 319 624 147.57%
2017-2018 8,202 4,765 3,437 310 310 620 554.48%
2018-2019 6,329 5,367 963 320 296 616 156.34%
2019-2020 6,280 5,354 926 340 273 613 151.02%
2020-2021 6,468 7,004 (535) 360 262 622 -86.14%
2021-2022 6,185 7,823 (1,638) 385 243 628 -260.80%
2022-2023 6,813 6,555 258 400 223 623 41.41%
Less: Net
Gross Operating Available Coverage
Fiscal Year Revenues Expenses Revenue Principal Interest Total % 2014-2015 $ 1,546 $ 1,488 $ 58 $ - -$ -$
2015-2016 1,693 1,647 46 - 118 118 38.99%
2016-2017 1,699 1,798 (99) 119 129 248 -39.93%
2017-2018 2,214 1,522 692 314 124 438 157.90%
2018-2019 2,148 1,390 758 346 114 460 164.78%
2019-2020 2,333 1,598 735 379 102 481 152.70%
2020-2021 2,353 1,421 932 391 91 482 193.37%
2021-2022 2,277 1,714 563 405 79 484 116.44%
2022-2023 2,373 1,796 577 417 66 483 119.46%
Debt Service Requirements
Utility Revenue Bonds
Installment Sales Agreement
Debt Service Requirements
170

Demographic and Economic Statistics
Per
Personal Capita
Fiscal Income Personal Labor Unemployment
Year Population 3 (in millions) 2 Income 2 Force 1 Rate 1 2014 4,470 n/a n/a 426,900 4.2%
2015 4,583 $ 74,641 $ 97,553 434,700 3.4%
2016 4,655 82,046 106,615 442,100 3.0%
2017 4,668 87,486 113,410 444,600 2.7%
2018 4,689 n/a n/a 454,900 2.2%
2019 4,691 n/a n/a 464,300 2.2%
2020 4,633 n/a n/a 460,000 2.0%
2021 4,851 n/a n/a 442,200 2.5%
2022 4,668 4 n/a n/a 457,000 4.3%
2023 4,756 4 n/a n/a 455,900 7.2%
Notes: 1
2 3 Source: California Department of Finance Population Estimates; except where noted 4 Source: 2021 US. Census
City of Brisbane
Last Ten Fiscal Years
Source: State of California Employment Development Department, San Mateo County; previous years reflect annual averages
Source: California Labor Market Info for San Mateo County. Data not available for 2014, 2018, 2019, 2020 and 2021
171

City of Brisbane
Principal Employers
Current Year and Ten Years Ago
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment Bi-Rite Foodservice Distributors 300 1 10.00% 259 4 3.80% LeeMAH Electronics 239 2 7.97%
Cutera Inc 209 3 6.97%
Expeditors Intl Inc 206 4 6.87% 223 8 3.28%
Sangamo Therapeutics 155 5 5.17%
Greenleaf 141 6 4.70%
Ultragenyx Pharmaceutical Inc 140 7 4.67%
Amazon Fresh 137 8 4.57%
Transdev Services Inc 137 9 4.57%
Norman S. Wright Mechanical Equipment Corporation 127 10 4.23% Pepsi Bottling Group 380 1 5.58%
Sunset Scavenger Co 350 2 5.14%
F.W. Spencer 325 3 4.77%
XOJet 250 5 3.67%
Caltronics Business Systems 243 6 3.57%
Monster Cable Products Inc 242 7 3.55%
Bebe 161 9 2.36%
Fong Brothers Printing 148 10 2.17%
Total Top 10 Employers 1,791 59.70% 2,581 37.91%
Total City Labor Force - 2022-2023 3 3,000
Total City Labor Force - 2013-2014 2 6,809
Source:
1 Avenu Insights & Analytics (City of Brisbane Business License process partner) Business License Data Report has been updated to reflect compliance with GASB No. 44.

Results based on direct correspondence with local businesses; reflect City of Brisbane locations only 2 City of Brisbane Business License data (self reporting); previous counts may be company-wide 3 Total City Labor Force provided by EDD Labor Force Data 2023 1 2014 2
172

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Full-Time Equivalent City Government Employees by Function 2014 2015 2016 2017
Function:

General Government 11.65 12.05 12.55 12.55
Public safety:

Police 15.11 17.11 18.11 19.11
Fire 10.00 10.00 10.00 10.00
Public Works and Municipal Utilities 14.00 15.00 17.00 17.00 Community Development 3.90 5.40 5.40 5.00
Parks and Recreation 18.83 18.83 19.83 19.58
Marina 5.75 7.25 7.25 7.25
Total 79.24 85.64 90.14 90.49
Source: City of Brisbane Base Budget
City of Brisbane
Last Ten Fiscal Years
June 30
174

2018 2019 2020 2021 2022 2023

12.55 13.55 13.55 15.55 13.55 13.55

19.11 19.61 19.61 16.11 19.11 19.11

10.00 10.00 10.00 13.00 13.00 13.00

19.00 20.00 20.00 22.00 22.00 22.00

5.00 5.00 5.00 6.00 6.00 6.00

19.58 19.58 15.30 15.30 20.58 20.58

5.25 3.50 3.50 3.50 3.50 3.50

90.49 91.24 86.96 91.46 97.74 97.74
June 30
175

Operating Indicators by Function
2014 2015 2016 2017
Function
Police
Response time to :

Extreme Emergencies 4:53 4:33 4:31 5:02
Emergencies 4:04 4:25 4:11 4:06
Non-Emergencies 4:52 6:06 5:18 6:16
Number of victims per 1,000 citizens or business 30 31 31 34 Fire
Number of calls answered 706 713 751 698
Number of inspections 493 382 378 413
Public Works:

Number of Building and Park Maintenance service requests received 140 166 146 168 Number of Graffiti on Public Property requests for service 6 12 7 6 Number of Sidewalk Maintenance/Trip Hazard service requests 10 14 14 25 Number of Street Tree service requests 37 38 70 42
Number of Street-Sign/Light/Traffic Signal service requests 29 82 94 97 Number of Weeds, Trash and Debris on Public Property service requests 42 66 78 93 Water
Total Water Purchased 302,776 ccf 279,815 ccf 257,414 ccf 294,756 ccf Number of main breaks and repairs 4201
Number of service breaks (public side of meter) and repairs 6233 Percentage of water samples that pass health standards 100 100 97 99 Percentage of water storage tanks cleaned and inspected 0 0 100 0 Percentage of reported broken water meters replaced 100 100 100 100 Percentage of backup emergency generators inspected and 100 100 100 100 tested at critical water facilities
Percentage of known water main valves exercised 50 44 28 20 Sewer
Average Daily sewage flow
(thousands of gallons) 303 346 379 475
Total annual sewage flow 147,836 ccf 168,651 ccf 185,044 ccf 231,544 ccf Number of public sewer main blocks/breaks 3343
Number of private lateral blocks/breaks that City responds to 18 25 15 4 Percentage of public sewer blockages cleared within:
4 hours 95 100 100 75
12 hours 95 100 100 75
Parks and Recreation:

Community/Special Events (Concerts in the Park, Festival of Lights, etc.) number of events 11 17 26 27
Sports Programs (e.g. basketball, softball): number of sports Youth 19 10 10 10
Adult 3221
Classes: (number of programs)
Adult 8 101011
Youth 114 7 7
Youth & Adult
Child Care programs (Average Enrollment):

Preschool 20 20 25 25
Afterschool 101 103 101 85
Day Camps (Average Enrollment)
Spring 39 35 36 32
Summer 45 50 44 46
Winter 25 24 29 31
Teen Programs (number of programs) 0433
Aquatic programs (Enrollment/attendance):

Summer swim lessons 466 551 514 518
Water aerobics 10 / day 11 / day 13 / day
Senior Center (Enrollment/attendance) 37 / week 55 / week 46 / week 44 / week Programs 6657
All programs 66
Rentals
Community Center 15 17 21
Mission Blue 37 26 16
Community Park 146 135 113
Fields 5 810
Notes: Indicators are not available for the general government function.

City of Brisbane
Last Ten Fiscal Years
Fiscal Year
176

2018 2019 2020 2021 2022 2023
4:36 4:43 4:02 4:05 3:38 4:01
3:54 3:58 3:54 3:55 3:51 3:58
6:07 6:21 5:50 5:07 5:15 5:18
33 30 35 33 38 35
694 660 529 559 615 660
502 419 371 248 514 381
173 165 230 151 219 298
7 9 7 10 13 8
29 21 38 25 15 32
54 76 77 46 64 71
80 91 109 81 79 71
111 70 70 72 118 143
334,217 ccf 323,917 ccf 310,127 ccf 303,604 ccf 298,906 ccf 258,323 ccf 046 132
252 426
100 100 100 100 100 100
0 100 0 100 0 0
100 100 100 100 100 100
100 100 100 100 100 100
10 35 22 27 12 3
426 430 397 326 381 441
207,825 ccf 209,917 ccf 193,548 ccf 159,165 ccf 185,721 ccf 215,284 ccf 311 420
414 6 210 2
33 100 100 100 100 100
33 100 100 100 100 100
25 27 30 12 24 34
12 11 15 3 5 6
11113 4
11 12 12 2 8 4
76427 6
20 16 16 8 22 20
90 100 100 27 100 110
32 35 32 24 42 42
42 53 55 33 70 81
20 30 45 0 30 33
55306 9
704 710 602 126 454 513
12 / day 14 / day 9 / day 25/day 25/day 25 / day
45 / week 47 / week 50 / week pen 8 days in fiscal yea 45 / week 60 / week 8 8 8 113 16
1 25 18 13 0 11 71
14 33 22 0 34 88
120 98 51 17 145 156
10 10 4 1 3 4
Fiscal Year
177

Capital Asset Statistics by Function
2014 2015 2016 2017
Function
Public Safety:

Police:

Stations 1111
Patrol units 5555
Fire:

Fire Stations 1111
Fire Engines 3333
Public Works:

Streets (miles) 23 23 23 23
Streetlights 790 791 791 791
Sanitary Sewers (linear feet) 80,712 80,712 80,712 80,712 Water Lines (linear feet) 132,830 132,830 132,830 132,830 Water Storage (million gallons) 2.9 2.9 2.9 2.9
Parks and Recreation:

Parks acreage 57.98 57.98 57.98 57.98
Parks 15 15 15 15
Swimming pools 1111
Open Space acreage 1 184.68 184.68 184.68 184.68
Wetlands 127.75 127.75 127.75 127.75
1 Source: 2001 Brisbane Open Space Plan
Note: No capital asset indicators are
available for the general government or
community development functions.

City of Brisbane
Last Ten Fiscal Years
Fiscal Year
178

2018 2019 2020 2021 2022 2023
111111
555556
111111
344444
23 23 23 23 23 23
659 659 659 659 659 700
82,020 82,020 82,020 82,020 82,020 82,020
132,830 132,830 132,830 132,830 132,830 132,830

2.9 2.9 2.9 2.9 2.9 2.9

57.98 57.98 57.98 57.98 57.98 57.98
15 15 15 15 15 15
111111
184.68 184.68 184.68 184.68 184.68 184.68
127.75 127.75 127.75 127.75 127.75 127.75
Fiscal Year
179

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CITY OF BRISBANE

MEMORANDUM ON INTERNAL CONTROL

FOR THE YEAR ENDED
JUNE 30, 2023

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CITY OF BRISBANE

MEMORANDUM ON INTERNAL CONTROL
For The Year Ended June 30, 2023
Table of Contents
Page
Memorandum on Internal Control ................................................................................................................... 1 Schedule of Material Weaknesses ........................................................................................................... 3 Schedule of Significant Deficiencies ....................................................................................................... 5 Schedule of Other Matters ....................................................................................................................... 7

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MEMORANDUM ON INTERNAL CONTROL
To the City Council of
the City of Brisbane, California
In planning and performing our audit of the basic financial statements of the City of Brisbane (City) as of and for the year ended June 30, 2023, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore material weaknesses or significant deficiencies may exist that were not identified. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error or fraud may occur and not be detected by such controls. However, as discussed below, we identified certain deficiencies in internal control that we consider to be material weaknesses and other deficiencies that we consider to be significant deficiencies.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. We consider the deficiencies in internal control included on the Schedule of Material Weaknesses to be material weaknesses.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies in internal control included on the Schedule of Significant Deficiencies to be significant deficiencies.

Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we believe are opportunities for strengthening internal controls and operating efficiency.

Management’s written responses included in this report have not been subjected to the audit procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them.

Government Auditing Standards require the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying Schedule of Material Weaknesses, Schedule of Significant Deficiencies and Schedule of Other Matters. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
1

This communication is intended solely for the information and use of management, City Council, others within the organization, and agencies and pass-through entities requiring compliance with Government Auditing Standards, and is not intended to be and should not be used by anyone other than these specified parties.

Pleasant Hill, California
December 5, 2025
2

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF MATERIAL WEAKNESSES
2023-01: Timeliness of Preparation for Audit and Production of Financial Statements Criteria: Financial Statements should be issued in a timely manner in order to be in compliance with State and bond indenture requirements, as well as to be informative and useful. Best practices ensure there are adequate resources available to not only keep up with day-to-day-operations, but there should be sufficient resources to perform monthly and annual closes, and allow time for analysis of account balances and activities on a regular basis. Part of this is ensuring there are resources available to be utilized on short notice to fill gaps in key positions, especially with the Finance Department.

In order to be able to issue the City’s financial statements in a timely manner, Finance staff need to be prepared for the audit by closing the general ledger timely and preparing audit checklist items ahead of the audit time scheduled. Throughout the audit, staff should respond to the auditors’ requests and inquiries during the time scheduled as well as follow-up items throughout the process.

Condition: The Finance Department was not adequately prepared for the audit when scheduled. The trial balance was not provided until after the auditors were scheduled to perform the audit, and when provided, was missing several key elements such as capital assets, leases, pension, segment information and budgetary information. Throughout the audit process, there were significant delays in the City staff responding to requests, and ultimately, the budget information necessary for the statements was not provided until September 2025.

Effect: The above conditions, as well as the conditions noted in the Schedule of Significant Deficiencies, delayed the completion of the year-end closing process, which increases the risk that errors or misstatements may go undetected by staff and corrections may not be made in a timely manner. Audit effort was substantially increased in response to the increased risks.

In addition, these conditions caused significant delays in the completion of the audit and issuance of the Basic Financial Statements, which adversely impacted the City’s credit rating.

Cause: The delay was due to staff constraints, two retirements, several family medical leave situations within the Finance Department, and issues with implementation of a budget system software update.

Recommendation: The City should analyze staff resources to determine what plans can or should be made to ensure that the financial data is processed properly and timely. In addition, the City must develop procedures to ensure that accounts are analyzed through the fiscal year (i.e. monthly closes), and after the year end, to ensure the general ledger is closed accurately and timely. The City’s staffing should allow for sufficient resources to be allocated to audit preparation and responsiveness.

Management’s Response: Staff agrees with the recommendation. The City has implemented a plan to complete all outstanding audits which includes temporary staffing reinforcements, a permanent parttime staff addition, re-evaluating areas that can be automated, additional cross-training, and using resources from other city departments that can add analytical and project support without losing financial integrity of the transactional records. Departmental functions have been re-assigned to enhance efficiencies while maintaining internal controls. Monthly and periodic review checklists have been reimplemented and will be reinforced with staff. Staff is in the process of replacing financial software applications that were not functioning as needed with more robust and vendor supported tools. 3

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF SIGNIFICANT DEFICIENCIES
2023-02: Timely Preparation and Review of Bank Reconciliations Criteria: Bank reconciliations are an important element of the City’s internal control structure. In order to be an effective control, bank reconciliations should be completed as soon as reasonably possible after each month-end, usually within 30 days, and subsequently reviewed for accuracy. Errors and unreconciled differences should be investigated and corrected immediately, so as to prevent additional errors and a decrease in efficiency.

Condition: During the fiscal year 2023 audit, we noted the following:

1. The March 2023 Bank Reconciliation for the City’s Operating Account was prepared on October 10, 2023, and reviewed on October 12, 2023.

2. The June 2023 Bank Reconciliation for City’s Payroll Account was prepared on August 1, 2023, but not reviewed until August 26, 2023.

3. The June 2023 Bank Reconciliation for the City’s Operating Account was prepared on October 10, 2023, and reviewed on October 12, 2023.

Effect: Without the timely completion of bank and investment reconciliations, errors or unauthorized transactions in these accounts might not be detected and remedied in a timely manner.

Cause: The delay was due to staff constraints, two retirements and several family medical leave situations.

Recommendation: In order to maintain adequate internal controls and detect any errors, irregularities or unauthorized activity timely, City staff should make the preparation and review of monthly bank reconciliations a priority. Timeliness would be within 30-45 days of month end for both preparation and review. Adjustments should be posted to the general ledger as necessary so that financial reports generated from the accounting system are accurate and up to date.

Management’s Response: Staff agrees with the recommendation. The Finance Department will reinforce month-end-close checklists to ensure the timely preparation and review of all bank reconciliations going forward. Additional staffing resources will be pursued for future supervisory-level vacancies.

4

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF SIGNIFICANT DEFICIENCIES
2023-03: Timeliness of Journal Entries
Criteria: Journal Entries should be prepared and reviewed in a timely manner for the period in which the entry is to be posted, in order to keep accounts up to date with the current information. In addition, to have a complete audit trail of the journal entry process, the dates of preparation and review should be documented for all journal entries.

Condition: We tested eleven journal entries for proper controls including sufficient supporting documentation, appropriateness, segregation of duties between preparing, reviewing and posting, recording in proper period, and timeliness. Of the eleven journal entries tested, two were posted significantly late (3-6 months after activity).

Effect: When journal entries are not posted and reviewed timely, financial reporting throughout the year may not be accurate. In addition, errors or irregularities may not be detected timely.

Cause: The delay was due to staff constraints, two retirements, and several family medical leave situations.

Recommendation: In order to maintain adequate internal controls and detect any errors, irregularities or unauthorized activity timely, City staff should prepare, review and post journal entries timely – typically within 30-45 days of the occurrence necessitating the adjustments. Adjustments should be posted to the general ledger as necessary so that financial reports generated from the accounting system are accurate and up to date. Timeliness of posting journal entries would also facilitate being able to close the year-end books more accurately and sooner.

Management’s Response: Staff agrees with the recommendation. Finance is staffed adequately when all employees are present. The challenge for a small department in a full-service city is providing timely execution of duties while up to 50% of the staff positions were vacant for extended periods of time. This issue was further complicated by software application issues. Monthly and periodic review checklists have been reimplemented and will be reinforced with staff. The reimplementation of checklists, increased communication, cross-training and streamlining of operations will help with this situation. In addition, management will be identifying contingency backup plans at supervisory levels to bring in additional resources if similar situations arise in the future. 5

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MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
2023-04: Capital Assets Detail Records
Criteria: City staff should maintain capital asset and construction in progress (CIP) detailed records that should be updated regularly for new acquisitions and project costs, and reviewed for any costs that should be written off (i.e. retirements or costs previously included in CIP that have been determined not to be capitalizable).

Condition: The capital assets and CIP reports initially provided for the audit were not properly updated. Beginning balances of CIP did not tie to the prior year audited financial statements, and the detail included CIP costs recorded in previous years that were not capitalizable.

Effect: When capital asset records are not updated regularly, there is a higher risk that expenditures may be over- or under- stated and may require more time to reconcile at year-end.

Cause: Although the City has adopted procedures for updating and reconciling fixed asset schedules and currently meets with departments to review the status of projects on a quarterly basis, the year-end procedures were not properly followed, and data was not updated and reconciled on a timely basis.

Recommendation: The Finance Department should re-train staff on the fixed asset accounting procedures and review accounts and update the capital asset and CIP records regularly throughout the year. More frequent updates will reduce time at year-end close when workload is high, ensure all capitalizable costs are captured, and that the accounts are materially correct .

Management’s Response: Staff agrees with the recommendation. Although annual reviews are common in municipalities as part of the year-end close, the City will consider implementing a mid-year fixed asset activity progress review, including updating the fixed asset module with to-date acquisitions and disposals. In addition, the Accounting Systems Analyst will be trained on the fixed asset procedures to increase the positions available to assist with the reviews and reconciliations for cross-training purposes. Finally, for year-end reconciliation, the Tyler Incode software is lacking in its ability to easily provide depreciation by fund/department, government function and asset type activity, as required for disclosure purposes in the annual report. To streamline the process and reduce the amount of staff time required for this disclosure, Finance will be assessing a modification to the software to automate the production of this information on a timely basis.
7

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS

NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE The following comment represents new pronouncements taking affect in the next few years. We cite them here to keep you informed of developments:

EFFECTIVE FISCAL YEARS 2024 and 2025:

EFFECTIVE FISCAL YEAR 2023/24:

GASB 100 – Accounting for Changes and Error Corrections The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability.

This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting—understandability, reliability, relevance, timeliness, consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial statements.

This Statement prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections. This Statement requires that (a) changes in accounting principles and error corrections be reported retroactively by restating prior periods, (b) changes to or within the financial reporting entity be reported by adjusting beginning balances of the current period, and (c) changes in accounting estimates be reported prospectively by recognizing the change in the current period. The requirements of this Statement for changes in accounting principles apply to the implementation of a new pronouncement in absence of specific transition provisions in the new pronouncement. This Statement also requires that the aggregate amount of adjustments to and restatements of beginning net position, fund balance, or fund net position, as applicable, be displayed by reporting unit in the financial statements.

This Statement requires disclosure in notes to financial statements of descriptive information about accounting changes and error corrections, such as their nature. In addition, information about the quantitative effects on beginning balances of each accounting change and error correction should be disclosed by reporting unit in a tabular format to reconcile beginning balances as previously reported to beginning balances as restated.

Furthermore, this Statement addresses how information that is affected by a change in accounting principle or error correction should be presented in required supplementary information (RSI) and supplementary information (SI). For periods that are earlier than those included in the basic financial statements, information presented in RSI or SI should be restated for error corrections, if practicable, but not for changes in accounting principles.
8

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
EFFECTIVE FISCAL YEAR 2024/25:

GASB 101 – Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.

Recognition And Measurement
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.

This Statement requires that a liability for certain types of compensated absences—including parental leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used.

This Statement also establishes guidance for measuring a liability for leave that has not been used, generally using an employee’s pay rate as of the date of the financial statements. A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities.

With respect to financial statements prepared using the current financial resources measurement focus, this Statement requires that expenditures be recognized for the amount that normally would be liquidated with expendable available financial resources.

Notes To Financial Statements
This Statement amends the existing requirement to disclose the gross increases and decreases in a liability for compensated absences to allow governments to disclose only the net change in the liability (as long as they identify it as a net change). In addition, governments are no longer required to disclose which governmental funds typically have been used to liquidate the liability for compensated absences. 9

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 101 – Compensated Absences (Continued)
How the Changes in this Statement Will Improve Financial Reporting The unified recognition and measurement model in this Statement will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. In addition, the model can be applied consistently to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave.

The model also will result in a more robust estimate of the amount of compensated absences that a government will pay or settle, which will enhance the relevance and reliability of information about the liability for compensated absences.
10

City Council Staff Report
Meeting Date: May 7, 2026
From: Maz Bozorginia, Public Works Director, Jerry Flanagan Subject: Receive Sanitary Sewer Smoke Testing Informational Update
Recommendation
Receive an informational overview of the City’s planned sanitary sewer smoke testing program.

Background
Smoke testing is a standard method used by many jurisdictions to evaluate sanitary sewer systems and identify defects such as cracks, leaks, and improper connections that contribute to inflow and infiltration (I&I). While commonly used throughout the region, smoke testing has not previously been conducted in Brisbane.

As part of ongoing efforts to maintain system performance and support regulatory compliance, staff is implementing a smoke testing program to better understand system conditions and prioritize future maintenance and capital improvements.

Discussion
Smoke testing involves introducing non-toxic, non-staining smoke into sections of the sewer system. The smoke travels through the pipes and escapes through openings such as damaged infrastructure or improper connections, allowing staff to identify potential defects for further investigation.

The smoke used is safe and does not pose a health risk; it is similar in appearance and composition to the theatrical smoke produced by fog machines. Residents may observe smoke from roof vents or other connected openings.

Staff anticipates conducting smoke testing in targeted areas during the second half of June 2026. In advance of this work, the City is conducting a series of outreach efforts to inform and educate the community about the purpose of the program and what to expect during testing.

Outreach efforts to date and planned include:
• Participation in the April 23, 2026, Farmers’ Market
• Community Meeting at the Brisbane Library on May 14, 2026, from 4:30 to 6:00 p.m. • Planned outreach at the Senior Center in late May

• Installation of informational signage in the downtown area to reach the business community
Additional information regarding the smoke testing process, including frequently asked questions, is available on the City’s website: https://www.brisbaneca.gov/789/UnderstandingSmoke-Testing The results of the smoke testing program will be used to inform targeted maintenance and future capital planning efforts within the sewer system.

Fiscal Impact
This report is informational. Costs associated with the smoke testing program will be addressed through existing maintenance budgets or brought forward for City Council consideration as part of a future work program or budget action.

Attachments
None
City Manager Approval
Jeremy Dennis, City
Manager
04/30/2026

City Council Staff Report
Meeting Date: May 7, 2026
From: Jeremy Dennis, City Manager, Christina Fernandez, Assistant City Manager, Mollie Brown, Management
Analyst
Subject: Receive Local Hazard Mitigation Planning Update Recommendation
Staff recommend the City Council receive an update on the Local Hazard Mitigation Plan (LHMP) creation, timeline and next steps, and community outreach.

Background
To be eligible for hazard mitigation grants and certain disaster recovery funds, a public agency must adopt a local hazard mitigation plan that has been approved by the California Office of Emergency Services (CalOES) and by the Federal Emergency Management Agency (FEMA). This is the fourth time Brisbane is updating its plan, occurring every five years, with the last action (Reso No. 2021-70) taken on November 18, 2021.

In addition to making Brisbane eligible for receiving Hazard Mitigation Assistance (HMA) project grant funding, one of the largest benefits of developing a LHMP is the planning process itself.

Bringing together staff and community to make decisions on what risks exist, what actions can be taken to reduce those risks, and how those actions should be prioritized, helps achieve buyin from the whole community.

The final LHMP will also have two strong components that can be incorporated into other local planning documents, such as the general plan, response plan, and evacuation plan, among others:

1. Risk Assessment: The Risk Assessment fully profiles the natural hazards that can impact a planning area. This includes location, history, probability, vulnerability and impact analysis that shows what is at risk if an event were to occur and what would happen.

2. Mitigation Actions: Based on the risk and capability assessments in the plan, the mitigation actions are the key actions a local government can take to mitigate the impacts of hazards in its most vulnerable communities. Mitigation actions are part of the Mitigation Strategy element.

Discussion
On October 23, 2026, City Manager Jeremy Dennis and Assistant City Manager Christina Fernandez attended the Local Hazard Mitigation Kick-Off Meeting hosted by the San Mateo

County Department of Emergency Management. The County’s consultants, Integrated Solutions Consulting (ISC), provided an overview and strategy for the LHMP process. This was followed by a training by the California Office of Emergency Services (CalOES). A subsequent staff workshop attended by Public Works Director Maz Bozorginia and Senior Planner Jeremiah Robbins was held on February 11, 2026 in Redwood City. The meeting focused on the use of the KMS portal, completion of stakeholder surveys, and completing updates to prior mitigation actions. On March 25, 2026, Assistant City Manager Christina Fernandez and Management Analyst Mollie Brown completed the Existing Mitigation Action Update Spreadsheet and the New Mitigation Action Form and submitted to the County of San Mateo Emergency Management department.

The timeline for future deadlines is below:
• April Review: Contractor will share draft LHMP Annexes for Plan Participant review/validation in April. Plan Participants' receipt of annex for review will be staggered based on submission date.
• May Public Comment: Validated Annexes will be shared with the public for 30 days of public comment.
• June Submission: After integrating public comment, staff will submit the LHMP to CalOES for feedback (within 45 days), followed by submission to FEMA for feedback (within 45 days).
• Fall Finalization & Adoption: Aiming to have a CalOES and FEMA approved plan in the fall to allow SMC and Plan Participants to put it on Board agendas for adoption before the current plan expires in December.

City of Brisbane’s outreach plan includes publishing an article in the weekly City Manager’s update (the Blast) and the monthly city newsletter (the STAR), sharing information with community members on how they can contribute to the LHMP which can be done by filling out an online form on the County’s website.

Fiscal Impact
There is no fiscal impact for receiving this update.

Attachments

1. Brisbane_LHMP_2026 DRAFT 050726
City Manager Approval

Jeremy Dennis, City
Manager
05/02/2026

City of Brisbane — 2026 LHMP Jurisdictional Annex
Brisbane Jurisdictional Annex | 2026 | Page 1

CITY OF BRISBANE
2026 Local Hazard Mitigation Plan
Jurisdictional Annex
San Mateo County, California | Published 2026

City of Brisbane — 2026 LHMP Jurisdictional Annex
Brisbane Jurisdictional Annex | 2026 | Page 2
Brisbane 2026 LHMP Jurisdictional Annex
This Annex details the hazard mitigation elements specific to the City of Brisbane, a participating jurisdiction of the 2026 San Mateo County Local Hazard Mitigation Plan (LHMP or the Plan) update.

This Annex is not intended to be a standalone document but supplements the information contained in Volume 1 (Countywide Planning Elements). Therefore, all sections of Volume 1, including the planning process, hazard identification and risk assessment, mitigation strategy (includes mitigation goals and objectives), and plan maintenance, apply to and were met by the City of Brisbane. This Annex provides additional information specific to the City, with a focus on providing further details on the hazard risk assessment and mitigation strategy (i.e., mitigation actions) for this community.

1. Hazard Mitigation Local Planning Team
The following individuals have been identified as the City of Brisbane Local Planning Team for the 2026 LHMP. These individuals participated in all aspects of the planning process and developed a risk and vulnerability assessment, capability assessment, and mitigation strategy (including mitigation actions) specific to the jurisdiction.

Name Title Department
Jeremy Dennis City Manager City Manager's Office
Christina Fernandez Assistant City Manager City Manager's Office Maz Bozorginia Director Public Works Department
Jeremiah Robbins Senior Planner Community Development
Department
Nick Gracia Acting Fire Chief North County Fire Authority Adrienne Etherton Sustainability Manager City Manager’s Office Mollie Brown Management Analyst City Manager’s Office

2. Jurisdiction Profile
The City of Brisbane is located on the western edge of San Francisco Bay, with a western boundary generally delineated by San Bruno Mountain. Neighboring agencies to the north include the City of Daly City and the City and County of San Francisco. South San Francisco is at the City’s southern limit. Although the City’s total land base is listed as 20.44 square miles, 17 square miles of this amount is covered by the San Francisco Bay.

Brisbane’s climate is mild during the summer, with temperatures in the 60s, and cool during the winter, with temperatures in the 50s. Summers are long, arid, and mostly clear, while winters are short, cold, and wet. Over the course of the year, the temperature typically varies from 46°F to 72°F, but is rarely below 39°F or above 82°F. The warmest month of the year is September, with an average high temperature of 73°F, while the coldest is January, with an average low temperature of 45°F.

City of Brisbane — 2026 LHMP Jurisdictional Annex
Brisbane Jurisdictional Annex | 2026 | Page 3
The average annual precipitation in Brisbane is 21.7 inches. Winter months tend to be wetter than summer months, with January being the wettest, averaging 4.3 inches of rainfall. Brisbane’s relative location to San Bruno Mountain tends to deflect seasonal fog to the north and south, away from the City.

2.1 Brief History
Brisbane was originally part of the Rancho Canada de Guadalupe la Visitacion y Rodeo Viejo, a large tract of land that included Guadalupe Valley, the Bayshore District of Daly City, the Visitacion Valley District of San Francisco, and San Bruno Mountain. Visitacion City, as Brisbane was originally known, was surveyed in 1908, adjacent to a new Southern Pacific Railroad line that offered a faster and more direct route to San Francisco. The town site remained largely undeveloped for many years, largely due to the “Panic of 1907,” a nationwide financial banking crisis/economic recession. During the 1920s, the area’s name was changed to Brisbane.

Growth was slow; by 1940, the town had a population of just 2,500. The issue of home rule and city formation was controversial among Brisbane residents during the 1940s and 1950s, with some residents seeking a stronger voice in local politics, while others were concerned about losing their town’s close-knit charm to another layer of government. Finally, an incorporation committee was formed in 1960, and after six (6) months of study, it was recommended that the town vote to incorporate a 2.5 square mile area. On September 12, 1961, the residents of Brisbane supported the incorporation committee’s recommendations, with 710 residents voting in favor of incorporation and 296 opposed.

2.2 Governing Body Format
The City of Brisbane is governed by a five (5) member City Council elected at large. A Mayor is chosen every year by the Council, and the City Manager is appointed by the Council as Chief Administrator. The City has two (2) standing commissions and five (5) committees whose members are appointed by the City Council.

The City Council will, by resolution, adopt the final approved version of the Brisbane Annex to the San Mateo County LHMP, and the Brisbane City Manager’s Office Division of Emergency Services will oversee its implementation.

2.3. Population
In 2024, the City of Brisbane had a population of 4,692, a 3.3% decrease from the estimated 2020 population of 4,851. Table 1 summarizes population distribution between 2010 and 2024, and the percentage of the 2024 population that is under five (5) years old, over 65 years old, and living below the poverty level.

Table 1. Population Trends
Population Underserved Population
2010 2020 2024
Population
Change
(2020–2024)
Youth
(Under 5
years old)
Elderly
(Over 65
years old)
4,282 4,851 4,692 -3.3% 4.7% 23.9%

City of Brisbane — 2026 LHMP Jurisdictional Annex
Brisbane Jurisdictional Annex | 2026 | Page 4

3. Changes in Development
California Law requires counties and cities to prepare and adopt a General Plan, a comprehensive long-range plan to guide community development. The General Plan must contain seven (7) statemandated elements – land use, housing, circulation, safety, open space, conservation, and noise – and may contain additional elements as a jurisdiction sees fit. Additionally, the General Plan must comprise an integrated and internally consistent set of goals, policies, and implementation measures.

The City of Brisbane adopted its General Plan under this law in June 1994 and has updated various elements several times over the years since.

The City of Brisbane has been reviewing several large development projects over the past several years (and decades), including the Baylands, The Shore at Sierra Point, and Quarry projects. These project developments will increase structures and populations in hazard areas, thereby increasing associated hazard risk. This includes development in areas prone to coastal flooding, sea level rise, landslides, and wildfires.

The Brisbane Baylands encompasses 680 acres and is generally bordered on the west by Bayshore Boulevard, north by the City and County of San Francisco, east by US Highway 101, and south by Brisbane Lagoon. The Baylands was formerly a landfill and a railyard. As such, extensive site remediation is required. The remediated site holds the promise of new sustainable development, including housing in the northwest quadrant, commercial development, and enhanced open spaces, parks, and trails.

The proposed Brisbane Baylands project, located along the Bay's coast, is in an area prone to coastal flooding and may be affected by sea level rise. The Brisbane Baylands Specific Plan includes development of 1,800-2,200 residential units; up to 7 million square feet of commercial space, including 500,000 square feet of hotel, and over 100 acres of open space and amenities.

Sierra Point is located on Brisbane's waterfront, anchoring the south end of The Baylands overlooking Brisbane Marina. The Shore at Sierra Point is a 23-acre waterfront campus with approximately 625,000 square feet of commercial space consisting of five R&D buildings, a 10,000 square foot restaurant and café bar, and 15,000 square feet of on-site retail. The Sierra Point Open Space and Parks Master Plan seeks to create a welcoming, inclusive, and sustainable waterfront that enhances public access to nature while fostering a strong sense of community. The goal is to balance the Bay Area's natural beauty with innovative design, ensuring Sierra Point serves as a gathering place for generations to come.

The Quarry Innovation Center, formerly known as the Guadalupe Quarry Redevelopment Project, is the development of a single 892,000 square foot advanced manufacturing facility on approximately 61 acres of the Guadalupe Quarry Site. The proposed project would involve annexation of the developed 61 acres into the City’s limits. Informed by extensive community feedback, the project is committed to balancing economic benefits with protection of San Bruno Mountain, and the remaining 82 acres (about 57%) of the 145-acre quarry site will be permanently set aside for habitat conservation and open space.

Table 2 summarizes development trends during the performance period since the previous LHMP was developed (i.e., past five (5) years), as well as expected future development trends (i.e., the next five (5) years).

Table 2. Recent and Expected Development Trends
Criteria Description

City of Brisbane — 2026 LHMP Jurisdictional Annex
Brisbane Jurisdictional Annex | 2026 | Page 5
Has your jurisdiction annexed any land
since the development of the previous
Local Hazard Mitigation Plan? If yes,
give the estimated area annexed and the
estimated number of parcels or
structures.

No
Is your jurisdiction expected to annex
any areas during the performance
period of this Plan?
The Quarry Innovation Center, formerly known as the
Guadalupe Quarry Redevelopment Project, would include
annexation of approximately 61 acres into the City’s limits.

Has your jurisdiction had any significant
changes in development over the past
five (5) years that have occurred in
hazard-prone areas? If yes, briefly
describe.

No
Are there any areas targeted for
development or major redevelopment in
the next five (5) years that will occur in
hazard-prone areas? If yes, briefly
describe.

The Baylands, Sierra Point, and Quarry project
developments will increase structures and populations in hazard areas, thereby increasing associated hazard risk.

This includes development in areas prone to coastal
flooding, sea level rise, landslides, and wildfires.

The proposed Brisbane Baylands project, located along
the Bay's coast, is in an area prone to coastal flooding and may be affected by sea level rise.

The Shore at Sierra Point anchors the south end of The
Baylands overlooking Brisbane Marina. Located along the Bay's coast, the area is prone to coastal flooding and may be affected by sea level rise. The Sierra Point Open Space and Parks Master Plan seeks to create a welcoming,
inclusive, and sustainable waterfront that enhances public access to nature while fostering a strong sense of
community.

The Quarry Innovation Center, formerly known as the
Guadalupe Quarry Redevelopment Project, is located on
San Bruno Mountain, the Quarry is in an area vulnerable to landslides and wildfires.

Provide the number of permits for each
hazard area or provide a qualitative
description of where development has
occurred.

The City of Brisbane has been reviewing several large
development projects over the past several years (and
decades), including the Baylands, the Shore at Sierra
Point, and Quarry projects.

3.1 Changes in Priority
Since the last Plan update, the City of Brisbane has significantly shifted focus to sea level rise and landslide mitigation in response to evolving state and regional requirements as well as recent impacts from atmospheric river and storm events. Brisbane experienced a major landslide on New Year’s Day 2023 resulting in the need for assistance from state and federal agencies. As new developments unfold, there may be additional shifts in priority. Additionally, mitigation actions from the previous Plan

City of Brisbane — 2026 LHMP Jurisdictional Annex
Brisbane Jurisdictional Annex | 2026 | Page 6
were updated, and a more concerted effort to achieve equitable outcomes for all communities, including underserved communities and socially vulnerable populations, has been implemented.

City of Brisbane — 2026 LHMP Jurisdictional Annex
Brisbane Jurisdictional Annex | 2026 | Page 7

4. Capability Assessment
Federal regulations require hazard mitigation plans to identify goals for reducing long-term vulnerabilities to the identified hazards in the planning area (Section 201.6(c)(3)(i)). A critical step in developing specific hazard mitigation actions and projects is assessing existing authorities, policies, programs, and resources and capabilities, and using or modifying local tools to reduce losses and vulnerability from profiled hazards.

A capability assessment was conducted for the City of Brisbane’s authorities, policies, programs, and resources. Goals and mitigation actions were developed using input from this assessment.

Information regarding the City's implementation of and continued participation in the National Flood Insurance Program (NFIP) can be found in Section 5 of this Annex.

The Local Planning Team assessed the City's capabilities that can contribute to the reduction of longterm vulnerabilities to hazards. The capabilities include the following categories:
• Planning and Regulatory Capabilities
• Administrative and Technical Capabilities
• Fiscal Capabilities
• Education and Outreach Capabilities
Additionally, ways to expand and improve these existing policies and programs to integrate hazard mitigation into the City's day-to-day activities were considered.

4.1 Planning and Regulatory Capabilities
Table 3 includes local ordinances, policies, and laws to manage growth and development (e.g., land use plans, capital improvement plans, transportation plans, emergency preparedness and response plans, building codes, and zoning ordinances).

Table 3. Planning and Regulatory Capabilities
Capability Category Yes/No
Authority
(local,
county,
state,
federal)
Responsible
Department/Agency
Code Citation and
Comments
Planning Capability
Comprehensive Plan
/ General Plan Yes Local
Community
Development
Department
General Plan (June
1994), various
elements have been
updated several times
over the years
Capital Improvement
Plan Yes Local Finance Department
Annual Plan and
Budget (2025-26);
Updated annually,
covers all public
facilities

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Brisbane Jurisdictional Annex | 2026 | Page 8
Floodplain
Management / Basin
Plan
Yes Federal FEMA FEMA Flood Insurance
Survey
Stormwater
Management Plan Yes Local Public Works Department
2003 Storm Drainage
Master Plan
Open Space Plan Yes Local
Community
Development
Department
Open Space Element
in the General Plan
(June 1994 – currently
being updated);
Brisbane Open Space
Plan (August 2001)
Stream Corridor
Management Plan No n/a n/a n/a
Watershed
Management or
Protection Plan
Yes Local
San Francisco Public
Utilities Commission
(PUC)
SFPUC Watershed
Sanitary Survey
Economic
Development Plan Yes Local
Community
Development
Department
Local Economic
Development Element
in the General Plan
(June 1994)
Comprehensive
Emergency
Management Plan
Yes Local
City Manager’s Office
(Emergency Services
Division)
Emergency Operations
Plan (2024)
Emergency
Operations Plan Yes Local
City Manager’s Office
(Emergency Services
Division), Police
Department
Updated in December
2024
Evacuation Plan Yes Local North County Fire
Authority
North County Fire
Authority Wildland Fire
Action Plan
Post-Disaster
Recovery Plan Yes Local
City Manager’s Office
(Emergency Services
Division)
Emergency Operations
Plan (2024)
Transportation Plan Yes Local Public Works
Department
Local Road Safety Plan
(May 2024); Bicycle
and Pedestrian Safety
Plan (September 2017)
Strategic Recovery
Planning Report Yes Local
City Manager’s Office
(Economic
Development
Division)
Chapter IV. Local
Economic
Development of the
General Plan (1994)

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Brisbane Jurisdictional Annex | 2026 | Page 9
Climate Adaptation
Plan Yes Local
Community
Development
Department, Public
Works Department
Climate Action Plan
(September 2015);
Brisbane Lagoon
Watershed Sea Level
Rise Adaptation Plan
(Under Development);
Sustainability
Framework for the
Baylands (November
2015)
Resilience Plan Yes Local Public Works
Department
Brisbane Shoreline
Resilience Plan (Under
Development)
Shoreline
Management Plan Yes County
San Francisco Bay
Conservation and
Development
Commission
Managed by the San
Francisco Bay
Conservation and
Development
Commission, created in
1965, revised in 2019
Community Wildfire
Protection Plan Yes Local North County Fire Authority
North County Fire
Authority Wildland Fire
Plan
Regulatory
Capability
Building Code Yes Local
Community
Development
Department
Title 15 of the City
Code
Zoning Ordinance Yes Local
Community
Development
Department
Title 17 of the City
Code
Subdivision
Ordinance Yes Local
Community
Development
Department
Title 16 of the City
Code
Flood Damage
Prevention
Ordinance
Yes Local Public Works
Department
Title 15, Chapter 15.56
of the City Code
Cumulative
Substantial Damage
Ordinance
No n/a n/a n/a
Freeboard No n/a n/a n/a

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Brisbane Jurisdictional Annex | 2026 | Page 10
Growth Management
Ordinance Yes Local
Community
Development
Department
General Plan (June
1994), various
elements have been
updated several times
over the years
Site Plan Review Yes Local
Community
Development
Department
Titles 15 and 17 of the
City Code
Stormwater
Management
Ordinance
Yes Local Public Works
Department
Title 13, Chapter 13.06
of the City Code
Municipal Separate
Storm Sewer
System (MS4)
Yes
Public
Works
Department
Public Works
Department
Title 13, Chapter 13.06
of the City Code
Natural Hazard
Ordinance Yes
Public
Works
Department
Public Works
Department
Title 15, Chapter 15.56
of the City Code
Post-Disaster
Recovery Ordinance Yes Local
Community
Development
Department
Title 2, Chapter 2.28 of
the City Code
Real Estate
Disclosure
Requirement
Yes State California Department
of Real Estate
Section 1102 of the
California Civil Code

4.2 Administrative and Technical Capabilities
The administrative and technical capabilities listed in Table 4 include community (i.e., public and private) staff, their skills, and tools that can be used for mitigation planning and implementation. This capability includes engineers, planners, emergency managers, Geographic Information System (GIS) analysts, building inspectors, grant writers, and floodplain managers. Small communities may rely on other government entities, such as counties or special districts, for resources.

Table 4. Administrative and Technical Capabilities
Capability Yes/No Position/Department/Agency
Administrative Capabilities
Planning Board Yes Planning Commission
Mitigation Planning Committee Yes Complete Streets Safety Committee

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Environmental Board/Commission Yes Open Space and Ecology Committee
Open Space Board/Committee Yes
Parks and Recreation
Commission; Open Space and
Ecology Committee
Economic Development Commission/Committee Yes Chamber of Commerce Maintenance programs to reduce risk Yes
Building Efficiency Program;
SB2 Planning Grant
Implementation Program
Mutual Aid Agreements Yes
Police Department; Public
Works Department; North
County Fire Authority
Technical/Staffing Capabilities
Planner(s) or engineer(s) with knowledge of land
development and land management practices Yes
Public Works Department
(Director); Community
Development Department
(Director)
Engineer(s) or professional(s) trained in building
or infrastructure construction practices Yes
Public Works Department
(Director); Community
Development Department
(Building Official)
Planners or engineers with an understanding of
natural hazards Yes
Public Works Department
(Director); Community
Development Department
(Director)
NFIP Floodplain Administrator Yes
Community Development
Department (Chief Building
Official)
Surveyor(s) Yes All surveying provided under
contract
Personnel skilled or trained in GIS applications Yes GIS Manager, City Manager’s Office
A scientist familiar with natural hazards Yes
Utilize the resources of the
local US Geological Survey
staff
Warning systems/services Yes
SMC Alert, in partnership with
the San Mateo County
Department of Emergency
Management
Emergency manager Yes City Manager’s Office
(Emergency Services Division)

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Grantwriter(s) Yes City Manager’s Office
Staff with expertise or training in benefit cost
analysis Yes Public Works Department (Senior Civil Engineer) Professionals trained in conducting damage
assessments Yes Public Works Department (Senior Civil Engineer)

4.3 Fiscal Capabilities
Table 5 lists fiscal capabilities available to the City that may be used to implement mitigation activities to reduce risk and enhance resiliency. This capability includes available funding sources from local budgets, state and federal grants, potential cost-sharing arrangements with private entities, existing insurance policies, and the ability to generate additional revenue through mitigation-related fees and bonds.

Table 5. Financial Capabilities
Capability Accessible or
Eligible to Use
Community Development Block Grants (CDBG, CDBG-DR) No
Federal Hazard Mitigation Assistance Program (i.e., Hazard Mitigation Grant Program (HMGP), HMGP Post Fire, Flood Mitigation Assistance (FMA) Program)
Yes
Capital improvements project funding Yes
Authority to levy taxes for specific purposes Yes
User fees for water, sewer, gas, or electric service Yes Impact fees for homebuyers or developers of new development/homes No Stormwater utility fee No
Incur debt through general obligation bonds Yes
Incur debt through special tax bonds Yes
Incur debt through private activity bonds Yes
Withhold public expenditures in hazard-prone areas Yes
Other federal or state funding programs Yes
Open space acquisition funding programs No

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4.4 Education and Outreach Capabilities
Table 6 lists the City's education and public outreach capabilities that can be used to inform residents about potential hazards, educate on mitigation strategies, and encourage proactive actions to reduce the community’s impacts to disasters. These capabilities include fire safety programs, hazard awareness campaigns, public information, and communications offices.

Table 6. Education and Outreach Capabilities
Capability Yes/No Position/Department/Agency
Public Information Officer Yes City Manager's Office (Assistant to the City Manager)
Personnel skilled or trained in website
development Yes City Manager's Office (Assistant to the City Manager) Hazard mitigation information is
available on the jurisdiction’s website Yes City Manager’s Office (Emergency ServicesDivision) Utilize social media for hazard
mitigation education and outreach Yes
Facebook: Facebook.com/brisbane94005/
Instagram: Instagram.com/cityofbrisbaneca/
X: X.com/brisbaneca
YouTube: Youtube.com/brisbaneca
Citizen boards or commissions that
address issues related to hazard
mitigation
Yes County's Emergency Services Council
Other programs already in place that
could be used to communicate
hazard-related information
Yes Weekly E-Newsletter; City Website; City
Monthly Print Newsletter
An established warning system for
hazard events Yes
SMC Alert, in partnership with the San Mateo
County Department of Emergency
Management

4.5 Community Classifications
The community classification relates to the community’s ability to provide effective services to reduce its vulnerability to the identified hazards. These classifications can be viewed as indicators of the community’s capabilities across all phases of emergency management (i.e., preparedness, response, recovery, and mitigation) and are used as underwriting parameters to determine the costs of various forms of insurance. Table 7 summarizes classifications of community programs available to the City of Brisbane.

Table 7. Community Classifications
Program Yes/No Classification
(if applicable)
Date Classified
(if applicable)
Community Rating System (CRS) No n/a n/a

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Building Code Effectiveness Grading
Schedule (BCEGS) No n/a n/a
Public Protection (ISO Fire Protection
Classes 1 to 10) No n/a n/a
NWS StormReady® No n/a n/a
NWS TsunamiReady® No n/a n/a
Firewise USA® No n/a n/a
NWS Weather Ready Nation
Ambassador Yes n/a n/a

4.6 Needs to Expand/Improve Capabilities
The City of Brisbane identified existing authorities, policies, programs, funding, and/or resources that need to be expanded and/or improved to support the implementation of the hazard mitigation initiatives identified in this Plan (e.g., mitigation actions). • City codes and ordinances (e.g., building, zoning, land use, fire) should be reviewed based on developing trends in identified hazards and mitigation measures that can make them more effective at preventing losses.
• The ability to implement the various mitigation strategies is limited by available staffing, capacities and resources. Securing mitigation grants funding and resource partnerships to find staff and implement programs and projects assist in implementing the various strategies.

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5. National Flood Insurance Program
The City of Brisbane is a member of the National Flood Insurance Program (NFIP) and but has not chosen to participate in the NFIP Community Rating System (CRS) Program. The City is in good standing with the NFIP through adoption and enforcement of floodplain management requirements (e.g., regulating all new and substantially improved construction in Special Hazard Flood Areas), floodplain identification and mapping, and flood insurance outreach to the community. The City's NFIP participation information is listed in Table 8.

Table 8. NFIP Participation Information
Community ID
NFIP
Participation
Date
Current
Effective
FIRM Date
CRS
Entry
Date
CRS Current
Effective Date CRS Class
060314 5/24/1974 4/5/2019 n/a n/a n/a

5.1 NFIP Floodplain Administrator
All NFIP participating jurisdictions have a designated Floodplain Administrator who is charged with enforcing floodplain regulations, routinely monitoring the floodplains, and providing community assistance, such as encouraging owners to maintain flood insurance. The City of Brisbane Floodplain Administrator information is listed in Table 9.

Table 9. Floodplain Administrator
Name Title Department Phone Number
Julia Ayres Chief Building Official
Community
Development
Department
415-508-2120

5.2 Repetitive Loss and Severe Repetitive Loss Property FEMA defines a Repetitive Loss property as an NFIP-insured property meeting at least one (1) of the following paid loss criteria since 1978, regardless of any changes in ownership:
• Four (4) or more separate claims payments greater than $5,000 each (including building and contents payment).
• Two (2) or more separate flood insurance claims payments (building payments only), where the total of the payments is greater than the property’s current value.

Additionally, to receive a designation, at least two (2) of the claim payments must occur within 10 years of one another.[1]
A Severe Repetitive Loss property is defined by FEMA as any NFIP-insured single-family or multifamily residential building meeting at least one (1) of the following paid loss criteria since 1978 or from a building constructed after 1978, regardless of any changes in ownership:[2]

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• That has incurred flood-related damage for which four (4) or more separate claims payments have been made, with the amount of each claim (including building and contents payments) exceeding $5,000, and with the cumulative amount of such claims payments exceeding $20,000.
• For which at least two (2) separate claims payments (building payments only) have been made under such coverage, with the cumulative amount of such claims exceeding the market value of the building.

Table 10 summarizes FEMA Repetitive Loss and Severe Repetitive Loss properties within the City of Brisbane.

Table 10. Repetitive Loss and Severe Repetitive Loss Properties Repetitive Loss Properties Severe Repetitive Loss Properties Total Occupancy Total Occupancy
0 n/a 0 n/a
Occupancy Type: Single Family = Single family residence • Two (2)-Four (4) Unit Residential Building = Two (2)-four (4) unit residential building • More Than Four (4) Units Residential Building = Residential building with more than four (4) units • Non-Residential Building = Nonresidential building • Non-Residential Business = Non-residential business • Single Family Residential Building = Single-family residential building with the exception of a mobile home or a single residential unit within a multi-unit building • Residential (2, 3, or 4 units) Non-Condo Building = Residential non-condo building with two (2), three (3), or four (4) units seeking insurance on all units • Residential (5 or more units) Non-Condo Building = Residential noncondo building with 5 or more units seeking insurance on all units • Residential Mobile/Manufactured Home = Residential mobile/manufactured home • Residential Condo Association = Residential condo association seeking coverage on a building with one (1) or more units • Single Residential Unit = Single residential unit within a multi-unit building • NonResidential Mobile/manufactured Home = Non-residential mobile/manufactured home • NonResidential Building = Non-residential building • Non-Residential Unit = Non-residential unit within a multi-unit building
Table 11 summarizes NFIP active policies and coverage in force data for City of Brisbane.

Table 11. NFIP Policies
NFIP Policies Insurance in Force Total Claims Paid Sum of Claims Paid n/a $0 n/a $0

5.3 Participation Activities
The City of Brisbane’s NFIP participation over the last five (5) years includes the following:
• Community staff provide the following services – permit reviews, GIS, inspections, and engineering capability.

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• The community teaches property owners or other stakeholders about the importance of flood insurance through public outreach events, workshops, and/or seminars. • The community enforces local floodplain regulations and monitors compliance. • The community’s floodplain development regulations meet or exceed Federal Emergency Management Agency (FEMA) or State minimum requirements.

5.3.1 Substantial Damage
Substantial damage means damage of any origin sustained by a structure whereby the cost of restoring the structure to its before damaged condition would equal or exceed 50% of the market value of the structure before the damage occurred. (Title 15, Chapter 15.56.050 of the City Code)

5.3.2 Substantial Improvement
Substantial improvement means any repair, reconstruction, or improvement of a structure, the cost of which equals or exceeds 50% of the market value of the structure either: before improvement or repair is started; or if the structure has been damaged, and is being restored, before the damage occurred.

For the purpose of this definition, substantial improvement is considered to occur when the first alteration of any wall, ceiling, floor, or other structural part of the building commences, whether or not that alteration affects the external dimensions of the structure. The term does not, however, include either: (1) any project for improvement of a structure to comply with existing state or local health, sanitary, or safety code specifications which are solely necessary to assure safe living conditions; or (2) any alteration of a structure listed on the National Register of Historic Places or a state inventory of historic places. (Title 15, Chapter 15.56.050 of the City Code)

5.3.3 Substantial Damage/Substantial Improvement Determination Process The City of Brisbane’s Substantial Damage/Substantial Improvement determination process ensures compliance with the NFIP and the local floodplain management ordinances. To determine whether a structure has sustained Substantial Damage/Substantial Improvement after a flood event, the City will use the FEMA Substantial Damage Estimator tool, along with a collaborative review conducted by the Codes Inspectors, the Public Works Department, the floodplain manager, and other relevant officials.

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6. Hazard Mitigation Plan Integration
For a community to successfully reduce long-term risk, hazard mitigation must be integrated into dayto-day planning mechanisms and initiatives. Plan integration is the process by which communities critically assess the existing planning framework and align efforts to reduce long-term risks and build a more resilient community. It involves a two (2) way exchange of information and incorporation of ideas and concepts between hazard mitigation plans and other community plans. In particular, plan integration involves incorporating hazard mitigation principles and actions into other plans and integrating planning mechanisms into hazard mitigation plans. Plan integration involves community plans, policies, codes, and programs that guide development and define roles and responsibilities for implementing these capabilities. Additionally, plan integration is achieved through the involvement of key staff and community officials in collaborative hazard mitigation planning.

6.1 Existing Plan Integration
A hazard mitigation plan must explain how the jurisdiction incorporated the previous Plan update over the last five (5) years to demonstrate progress in local mitigation efforts. During the performance period since the adoption of the previous LHMP, the City of Brisbane has made progress in integrating components of the hazard mitigation strategy (e.g., goals, objectives, and actions) into planning initiatives and mechanisms. Table 12 highlights the planning mechanisms/initiatives in which the previous Plan was integrated, as well as the information integrated.

Table 12. Existing Plan Integration
Planning Initiative Current Integration Description
General Plan
State law requires a General Plan to address protection of a community from the risks of natural hazards. Brisbane’s Chapter X (Community Health and Safety) exceeds this requirement by also speaking to human-caused hazards that are a part of urban life. The requirements of this section align with the LHMP’s goal of identifying natural hazards and strategies to mitigate them. The City also recently completed the 2023-2030 Housing Element update and the 2021 Safety Element update. Both incorporate the LHMP by reference pursuant to AB 2140.

Municipal Code,
Chapter 2.28
Given that the local Office of Emergency Services has overall responsibility for implementing the LHMP, the creation of the Disaster Services Council and the Office of Emergency Services align directly with the LHMP’s goal of establishing a coordinated approach to implementing the Plan.

Brisbane Baylands
Final Environmental
Impact Report
The Brisbane City Council certified the Final (Program) Environmental Impact Report on July 19, 2018, for a General Plan amendment to allow development on an approximately 684-acre project site directly connected to the San Francisco Bay. CEQA review is in line with the LHMP’s goal of identifying natural hazards and identifying mitigation for them.

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North County Fire
Authority Wildland
Pre-Fire Attack Plan
The cities of Daly City, Pacifica, and Brisbane have entered into a JPA where administrative oversight and training of fire departments is provided by Daly City to the other cities. North County Fire Authority has developed and conducts an annual exercise plan that includes familiarization training on the boundary, integration of multiple fire responders (including CalFire land and air crews), and citizen evacuation awareness. Extensive pre-planning to mitigate the effects of a wildfire on San Bruno Mountain is clearly consistent with the goals of the LHMP.

Emergency
Operations Plan
The Emergency Operations Plan (EOP) integrates mitigation considerations in its response actions to reduce risk exposure to the community. The LHMP is currently used as an essential tool to update the City EOP.

Capital
Improvement Plan
The City’s capital improvement plan (CIP), developed in 2004 and updated bi-annually, includes projects that can help mitigate potential hazards. The City will act to ensure consistency between the LHMP and the current and future capital improvement plans. The LHMP may identify new possible funding sources for capital improvement projects, which may result in modifications to proposed projects based on the results of the risk assessment.

6.2 Potential Future Integration
A hazard mitigation plan must explain how the jurisdiction intends to incorporate this Plan update into planning mechanisms over the next five (5) years. Table 13 outlines planning mechanisms/initiatives that do not currently integrate the goals and recommendations of this Plan but provide opportunities to do so in the future.

Table 13. Potential Future Integration
Planning Initiative Potential Integration Description
General Plan
The City of Brisbane’s last comprehensive update of its General Plan occurred in 1994. Sustainable development is a key conceptual framework for updates to the General Plan and Housing Element, reflecting the City’s recognition of the serious threats posed by climate change, as well as by local hazards such as landslides, fires, earthquakes, flooding, and sea level rise. Any future updates provide Brisbane an opportunity to fully integrate the goals, risk assessment, and/or recommendations of the LHMP, maintain compliance with AB 2140, and ensure compliance with SB 379.

Capital
Improvement
Projects
The City will continue to ensure consistency between this LHMP and future updates of the Capital Improvement Plan. The LHMP may identify new possible funding sources for capital improvement projects, which may result in modifications to proposed projects based on the results of the risk assessment.

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Storm Drain Master
Plan
The largest dollar amount of structural projects identified in this Plan is located in the planning application area known as the Baylands.

The majority of the Storm Drain Master Plan improvements necessary to mitigate flooding in this area have already been studied. Pre-identification of natural hazards (e.g., flooding) and the requirement to mitigate them during the development of a land area from its current brownfield status are consistent with the LHMP.

Furthermore, mitigation actions in this LHMP can inform updates and revisions to the Storm Drain Master Plan.

Climate Action Plan
The City will continue to include and consider the LHMP in future updates of the Climate Action Plan (CAP). The LHMP will serve as a crucial tool in shaping policies and actions within the CAP, which is scheduled to be updated in FY 2026-2027.

Emergency
Operations Plan
This LHMP will continue to be an essential tool to update the City EOP. The latest hazard descriptions in this LHMP will be included in the City EOP, as appropriate. Mitigation actions that are of a preparedness and response nature will be analyzed for applicability and inclusion in the description of EOP processes and procedures.

Brisbane Baylands
Specific Plan
Environmental
Impact Report
The City, as the Lead Agency, has prepared a Draft EIR for the proposed Baylands Specific Plan. It builds on the information and analyses set forth in the earlier certified Program EIR, with new and updated environmental impact analyses, including the identification and mitigation of natural hazards, and incorporated elements of the LHMP in its analysis. The Final EIR is expected to retain the incorporated elements from the LHMP.

The City’s Local Planning Team will identify all relevant planning initiatives scheduled for update during the annual update process of the LHMP. Additionally, the Local Planning Team will identify opportunities to integrate key elements of the LHMP, specifically relevant strategies, into the planning initiatives. Mitigation actions were identified to promote plan integration in future revisions of this Plan.