CITY OF BRISBANE OPEN SPACE ELEMENT – DRAFT (5/14/2026) 17 A significant amount of land within the Brisbane City limits and its sphere of influence is within the San Bruno Mountain Habitat Conservation Plan area. That was established as the nation’s first HCP in 1982.
Natural Communities Conservation Plan (NCCP): Fish and Game Code Section 2805 defines a “natural community conservation plan” as “a planning agreement entered into in accordance with Section 2810. The plan shall identify and provide for those measures necessary to conserve and manage natural biological diversity within the plan area while allowing compatible and appropriate economic development, growth, and other human uses.”
The aim is to promote coordination and cooperation among public agencies, landowners, and other private interests, to provide a mechanism by which landowners and development proponents can effectively address cumulative impact concerns, promote conservation of unfragmented habitat areas, promote multispecies and multihabitat management and conservation.
An NCCP is the state counterpart to the federal habitat conservation plan (HCP). It provides a means of complying with the Natural Community Conservation Planning Act (NCCP Act) and securing take authorization at the State level. To be approved by the California Department of Fish and Wildlife (CDFW), an NCCP must provide for the conservation of species and protection and management of natural communities in perpetuity within the area covered by permits.
At the time of this writing, an NCCP has not been established in Brisbane.
Open Area(s): Open areas are defined in the Land Use Element as “parcels of land or portions thereof, primarily in private ownership, that serve to soften the impacts of urban development and otherwise provide primarily green areas and a feeling of ‘openness’ to the development pattern.
Open areas include, but are not limited to, setbacks and easements that are landscaped or characterized by native vegetation, gardens and landscaped vegetation. Open areas might also include golf courses, private parks and recreation areas within private developments. An open area may consist of a combination of hardscape and V-22 landscape, typical of plazas, sculpture gardens and gathering places. Streets, sidewalks, parking lots and similar improvements, although not covered by structures, do not qualify as open areas.”
Open-space land: California Government Code Section 65560(h) defines open-space land as “any parcel or area of land or water that is devoted to an open-space use as defined in this section, and that is designated on a local, regional, or state open-space plan as any of the following:
▪ Open space for the preservation of natural resources, including, but not limited to, areas required for the preservation of plant and animal life, including habitat for fish and wildlife species; areas required for ecologic and other scientific study purposes; rivers, streams, bays, and estuaries; and coastal beaches, lakeshores, banks of rivers and streams, and watershed lands.
▪ Open space used for the managed production of resources, including, but not limited to, forest lands, rangeland, agricultural lands, and areas of economic importance for the production of food or fiber; areas required for recharge of groundwater basins; ATTACHMENT 1
CITY OF BRISBANE OPEN SPACE ELEMENT – DRAFT (6/18/2026) 18 bays, estuaries, marshes, rivers, and streams that are important for the management of commercial fisheries; and areas containing major mineral deposits, including those in short supply.
▪ Open space for outdoor recreation, including, but not limited to, areas of outstanding scenic, historic, and cultural value; areas particularly suited for park and recreation purposes, including access to lakeshores, beaches, and rivers and streams; and areas that serve as links between major recreation and open-space reservations, including utility easements, banks of rivers and streams, trails, and scenic highway corridors.
▪ Open space for public health and safety, including, but not limited to, areas that require special management or regulation because of hazardous or special conditions such as earthquake fault zones, unstable soil areas, flood plains, watersheds, areas presenting high fire risks, areas required for the protection of water quality and water reservoirs, and areas required for the protection and enhancement of air quality.
▪ Open space in support of the mission of military installations that comprises areas adjacent to military installations, military training routes, and underlying restricted airspace that can provide additional buffer zones to military activities and complement the resource values of the military lands.
▪ Open space for the protection of places, features, and objects described in Sections 5097.9 and 5097.997 of the Public Resources Code.”
Open Space Plan or Local Open-space Plan: California Government Code Section 65560(g) defines “Local open-space plan” as “the open-space element of a county or city general plan adopted by the board or council, either as the local open-space plan or as the interim local open-space plan adopted pursuant to Section 65563.”
Park(s): Government Code Section 65560(H) in its definition of “open-space land” includes outdoor space for outdoor recreation, which includes “...areas suited for parks and recreation purposes, including access to lakeshores, beaches, and rivers and streams...” For the purposes of this element, parks are considered as a subcategory of open space that primarily serves recreational purposes.
Parks often have improvements for public use.
Priority Conservation Area (PCA): PCAs are regionally significant areas to be protected and improved. PCAs include natural habitats, recreation areas, urban green spaces and locations that can help fight the effects of climate change. PCAs are nominated by local jurisdictions with land use authority (such as open space districts, city and county parks and recreation departments, and other local entities) and adopted by ABAG. (Note: See the ABAG website for further details.) Per the Metropolitan Transportation Commission (MTC), PCAs are those areas adopted by the Association of Bay Area Governments (ABAG), following nomination by the local jurisdiction, as “regionally significant areas to be protected and improved. PCAs include natural habitats, farms and ranchlands, recreation areas, urban green spaces and locations that can help fight the effects of climate change.”
ATTACHMENT 1
CITY OF BRISBANE OPEN SPACE ELEMENT – DRAFT (5/14/2026) 19 There are five types of PCAs, that intended to recognize the vitality of the Bay Area’s natural systems, rural economy and the health of all residents:
▪ Natural Lands
▪ Agricultural & Working lands
▪ Urban Greening
▪ Recreation
▪ Climate Adaptation
Priority Preservation Area (PPA): The PPA is the mapped area within the upper Brisbane Acres with likely significant biological resources, originally established in the 2001 Brisbane Open Space Plan, and as amended and expanded. These areas are generally within the PCA.
Recreation, Active Recreation and Passive Recreation:
Active Recreation: Active recreation involves activities that require physical exertion and often focus on improving fitness, building strength, and enhancing the overall health of the participants.
These activities frequently involve movement, energy, and outdoor adventures.
Examples of Active Recreation:
• Playing sports, such as basketball, tennis, or soccer • Running or jogging
• Swimming
• Cycling or skating
• Participating in fitness classes
• Engaging in obstacle courses or adventure-based activities.
Passive Recreation: Passive recreation, on the other hand, involves low-energy activities that are more sedentary and focus on relaxation, peace, and mental rejuvenation. These are pursuits that allow you to unwind and recharge while enjoying your environment and engaging with leisurely activities.
Examples of Passive Recreation:
• Walking through a park or nature trail
• Bird watching or photography
• Reading books or enjoying a podcast outdoors
• Picnicking with family or friends
• Relaxing by a lake or engaging in fishing.
ATTACHMENT 1
CITY OF BRISBANE OPEN SPACE ELEMENT – DRAFT (6/18/2026) 20 Rewilding: Per Government Code 65565.5(b)(1) “rewilding opportunities may include, but are not limited to, the following:
• Opportunities to preserve, enhance, and expand an integrated network of open space to support beneficial uses, such as habitat, recreation, natural resources, historic and tribal resources, water management, and aesthetics.
• Establishing a natural communities conservation plan to provide for coordinated mitigation of the impacts of new development.”
ATTACHMENT 1
RESOLUTION 2026-GPA-01
A RESOLUTION OF THE PLANNING COMMISSION
OF THE CITY OF BRISBANE
RECOMMENDING THAT THE CITY COUNCIL
AMEND THE OPEN SPACE ELEMENT
OF THE 1994 GENERAL PLAN
WHEREAS, Government Code Section 65565.5 requires jurisdictions statewide to update the Open Space Element of the general plan to address open space access for all, climate resilience and other co-benefits of open space, rewilding, and where applicable coordination with regional conservation plans coordination; and
WHEREAS, pursuant to this State law requirement from April 10, 2025 to October 23, 2025 the City Council-appointed Planning Commission, Parks and Recreation Commission, Open Space and Ecology Committee, and Inclusion, Diversity, Equity & Accountability (IDEA) Committee held workshops and reviewed preliminary drafts of revisions to the Open Space Element’s goals, policies and programs and provided recommendations; and WHEREAS, following the above-mentioned workshops, on October 30, 2025, pursuant to Government Code § 65352.3, notice and a copy of the draft Open Space Element was provided to California Native American tribes and no request for consultation was received; and WHEREAS, the draft Open Space Element component pertaining to agricultural resources was provided to the CA Department of Conservation, pursuant to Government Code § 65565(c)(1); and
WHEREAS, the draft Open Space Element was provided to responsible City departments and outside agencies with responsibility over the San Bruno Mountain Habitat Conservation Plan, including, but not limited to, San Mateo County Parks Department, US Fish and Wildlife Service, CA Department of Fish and Wildlife; and
WHEREAS, a public hearing on amendments to the Open Space Element of the General Plan was held on May 14, 2026, duly noticed on May 1, 2026 at the City’s designated public notice locations, provided in Brisbane Municipal Code Section 1.12.010, and on the City’s website; and
WHEREAS, the Planning Commission reviewed and considered the staff memorandum relating to said General Plan Amendment application, and the written and oral evidence presented to the Planning Commission; and
WHEREAS, the Planning Commission’s recommended update to the 1994 Open Space Element and the minutes of the Planning Commission meeting of May 14, 2026 are attached and incorporated by reference as part of this resolution; and ATTACHMENT 2
ATTACHMENT 2
Brisbane Planning Commission Minutes
May 14, 2026
Applicant Anthony Guerra provided additional explanation regarding operating hours and noise and emphasized the quiet nature of his work.
With no one else wishing to address the Commission, a motion by Commissioner Funke, seconded by Commissioner Wodziak, to close the public hearing was approved 4-0.
After deliberation, a motion made by Commissioner Wodziak, and seconded by Commissioner Sayasane, to approve the application with findings and the added condition for mandatory parking of vehicles and the building, via adoption of Resolution 2026-UP-01, was approved 4-0.
Chair Gooding read the appeal procedure.
D. PUBLIC HEARING: General Plan Amendment 2026-GPA-01; Citywide; General Plan amendment to the Open Space Element, as required by Government Code Section 65565.5 to address access, climate resilience and other co-benefits of open space, and rewilding, through an update of the goals, policies and programs; and finding that this project is categorically exempt from environmental review under CEQA Guidelines Sections 15307 and 15308; City of Brisbane, applicant.
Senior Planner Johnson presented the agenda report to the Commission and answered questions about annual reporting and the priority conservation areas.
Chair Gooding opened the public hearing.
Michele Salmon, Brisbane Resident, emphasized the importance of the Element and requested that the Commission take its time to review it , especially giving consideration for wildlife and future development.
With no one else wishing to address the Commission, a motion by Commissioner Sayasane, seconded by Commissioner Funke, to close the public hearing was approved 4-0.
After discussion, a motion made by Commissioner Sayasane, and seconded by Commissioner Wodziak, to approve the amendment via adoption of Resolution 2025-GPA-01, was approved 4-
0. ITEMS INITIATED BY STAFF
Director Ayres introduced Associate Planner Whitney, and announced that she had been appointed Director of Community Development. She stated the Final Environmental Impact Review (EIR) for the Baylands Specific Plan as well as a staff-recommended draft version of the Specific Plan were released on May 14, 2026 and are available for viewing at the Brisbane Library and City Hall, and announced related workshops May 28, 2026, at 6:30 p.m., and June 11, 2026, at 6:30 p.m. Notices have been distributed for the first Planning Commission public hearing for the Baylands Specific Plan for June 25, 2026, at 7:30 p.m. She stated that the Open Space Element would be scheduled for public hearing at City Council on June 18, 2026.
PLANNING COMMISSION AGENDA REPORT
Meeting Date: May 14, 2026
From: Ken Johnson, Senior Planner
Subject: Open Space Element; General Plan Amendment 2026-GPA-01; Proposal of the City of Brisbane to amend the Open Space Element of the General Plan to address access, climate resilience and other co-benefits of open space, and rewilding; City of Brisbane, applicant; citywide.
REQUEST: The proposed General Plan Amendment would update the Open Space Element (Element), one of the seven State mandated elements of the city’s general planin order to comply with Government Code Section 65565.5, which requires jurisdictions statewide to update their general plans, to address open space access, climate resilience and other co-benefits of open space, and rewilding.
RECOMMENDATION: Approve Permit application 2026-GPA-01 via adoption of Resolution 2026- GPA-01, containing the findings and conditions of approval (See Attachment A).
ENVIRONMENTAL DETERMINATION: The amendment is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per Sections 15307 and 15308, as actions for protection of natural resources and for protection of the environment. The exceptions to these categorical exemptions referenced in Section 15300.2 of the CEQA Guidelines do not apply.
APPLICABLE CODE SECTIONS: Section 65565.5 of the Government Code requires Open Space Elements to address open space access, climate resilience and other co-benefits of open space, and rewilding. Additionally, the broader Government Code Sections pertaining to open space elements are provided in Sections 65560 - 65570.
BACKGROUND: The last update to the City’s Open Space Element was done with the adoption of the General Plan as a whole in 1994. Since that time, State law pertaining to open space elements has been advanced, which has necessitated this update to the Element.
Government Code:
In 2022, the State passed Senate Bill (SB) 1425, which is codified as Government Code § 65565.5 and requires that every city and county review and update its Open Space Element.
The update was due by January 1, 2026, but due to necessary review timelines, the City’s update process has extended beyond that due date. SB 1425 requires the Open Space Element to address the following:
• Access to open space for all residents in a manner that considers social, economic, and racial equity.
• Climate resilience and other co-benefits of open space, correlated with the safety element.
• Rewilding opportunities, correlated with the land use element. Rewilding opportunities may include, but are not limited to, opportunities to preserve, enhance, and expand an integrated network of open space to support beneficial uses, such as habitat, recreation, natural resources, historic and tribal resources, water management, and aesthetics.
The Government Code further detailing the required contents of an Open Space Element is provided in Government Code Sections 65560 to 65570. The City’s Open Space Element already complies with these requirements and no updates are proposed relative to those Government Code Sections.
Element Update Workshops:
The process of updating Brisbane’s Open Space Element began in the spring of 2025 with a series of workshops with the following City Council appointed bodies:
• Planning Commission (4/10/25 & 10/23/25)
• Parks and Recreation Commission (5/8/25)
• Open Space and Ecology Committee (5/16/25 & 9/18/25)
• Inclusion, Diversity, Equity & Accountability (IDEA) Committee (6/11/25) These workshops provided an opportunity for the commissions and committees to review preliminarily proposed updates to the Element. As part of those reviews, a comparison table between the existing and proposed draft revisions to the Element’s goals, policies and programs was provided. The draft Open Space Element is provided as an attachment to the proposed Resolution 2026-GPA-01 (Attachment A) and the latest comparison table (Attachment B) reflects the input of the commissions’ and committees’ review.
Other General Plan Elements:
Staff also reviewed the other elements of the General Plan, to ensure consistency between the elements, as described further below. No amendments are proposed to other Elements of the General Plan at this time.
DISCUSSION: As indicated above, the last update to the City’s Open Space Element was done with the adoption of the 1994 General Plan. While most of the 1994 Element’s goals, policies and programs remain relevant today, the update to the Element provided an opportunity to restructure the policies and programs to more clearly address State law requirements. This report provides a brief discussion of the Element’s new structure and highlights a few areas of interest. For further details of the proposed update, please refer to the draft Element
(Attachment A), the goals, policies and programs comparison table (Attachment B), and the 1994 Open Space Element (Attachment D).
Contents and Structure:
The draft Element provides the goals, policies and programs that the City will undertake for compliance with State law requirements as provided in Government Code Sections 65560 to 65570. The proposed structure of the Element has been aligned with State law requirements and this is reflected in the proposed table of contents, as follows:
1. Introduction
2. Comprehensive Open Space Planning
3. Inventories, Acquisitions & Preservation
4. Open Space for Natural Resources & Rewilding
5. Open Space for Outdoor Recreation & Access for All
6. Health, Safety and Climate Resilience
7. Historic and Tribal Resources
8. Agriculture & Managed Resources for Production
9. Military
A. Appendix A: Glossary
With the exceptions of the Introduction and Military chapters, each chapter has at least one overarching City goal, and one or more policy under the goal and likewise one or more implementing program for each policy. An example that shows this hierarchy is as follows:
“Goal OS.2: Significant funding resources and other tools are made available to acquire and preserve open space.
Policy OS.2.A: Maintain an inventory of existing and potential open space and parks.
Program OS.2.A.1: (93h) Consistent with State law and the City’s open space goals, the City will maintain an inventory, comprised of maps and tables, of all vacant or unimproved lands, park lands and open space lands within the City and its sphere of influence and shall update the inventory as needed to reflect changes in land characteristics and acquisitions.”
Note that the number “93h” listed in the program above is a reference to the 1994 Open Space Element numbering and is provided for tracking purposes only.
While the structure of the element has been updated in its entirety, the policies and programs that implement the City’s goals have been largely carried forward to this draft and reorganized and updated from those adopted in 1994, along with some edits for clarity and additions to address state law.
Implementation Plan and Annual Reporting:
Program OS.1.A.5 in the draft Element commits the City to “Update the open space implementation plan as needed to reflect changes in environmental conditions or City priorities and activities. (Reference: 2001 Open Space Plan).” The 2001 Open Space Plan was adopted by City Council as an implementation plan and in large part referenced the adopted 1994 Open Space Element. While some of the contents of that 2001 plan, such as the criteria for considering potential open space lands, has been brought forward to this draft Element (see new proposed program, OS.2.B.10), the intent was not to update the implementation plan at this time. The future implementation plan update would include assignment of timelines and responsible departments, commissions or committees.
Also, as indicated in the Program OS.2.A.1 above, the City will be maintaining an inventory of maps and tables, consistent with State law, to track all vacant or unimproved lands, as required by State law. To more readily update the maps and tables, these will be maintained as separate documents from the Element and would be key parts of staff’s annual reporting to City Council described below.
The 1994 Open Space Element included a few programs on reporting the status of open space acquisitions to City Council. These have been consolidated under a new goal that, “Open space planning is long range and comprehensive”, as Program OS.1.A.2:
“Provide an annual report to the City Council on the following:
a. (93d) The state of the open space resources in the community, the amount and type of open space land, the needs for operating and maintaining existing lands, and new acquisitions and funding sources.
b. (84f) Activities pertaining to acquisition, preservation and appreciation of open space and San Bruno Mountain.
c. (83d) Federal, State and private opportunities for open space acquisition on San Bruno Mountain and elsewhere in the City.”
Consistency with Other Elements:
State law requires that general plans must be internally consistent and the proposed draft Open Space Element is consistent with the other elements. The City’s General Plan contains the following elements:
• Community Character
• Local Economic Development
• Land Use
• Circulation
• Open Space
• Recreation and Community Services
• Conservation
• Community Health and Safety
• Housing
• Policies and Programs by Subarea
A link to all chapters of the General Plan is provided (Attachment C) and a brief discussion of the most closely related elements is provided below.
Conservation Element: The Conservation Element is a closely related element and provides mapping, policies and programs for conservation of various environmental resources. Perhaps the most notable is biological resources related to endangered butterfly species located on San Bruno Mountain, which is the subject of the San Bruno Mountain Habitat Conservation Plan (HCP). The draft Open Space Element includes a number of references to the HCP. One of these is provided in Program OS.3.A.3, “Ensure that development applications for privately owned land within the San Bruno Mountain Habitat Conservation Area comply with the provisions of the San Bruno Mountain Habitat Conservation Plan to protect endangered species habitat.” Other resource areas included in the Conservation Element which have connection to the draft Open Space Element are soils, surface and groundwater, minerals and cultural resources. While no conflict exists between the elements, the Conservation Element will also soon be due for an update. As with the General Plan as a whole, it’s envisioned that that would be initiated following adoption of the Baylands Specific Plan. Note also that California Assembly Bill 1889 (2024) requires cities to update their conservation elements upon the next general plan revision on or after January 1, 2028.
Recreation and Community Services Element: The Recreation and Community Services Element is an optional element under State law. Although optional, it is of no less importance than other elements. It covers recreational and educational facilities and recreational programs for various age groups, especially children and seniors and those with special needs. The draft Open Space Element addresses recreation in the programs under Policy OS.2.C, “Acquire, establish and maintain parks throughout Brisbane, to meet and exceed the standards provided by the National Recreation and Parks Association (NRPA) and the California Department of Parks and Recreation” (Chapter 3) and the various goals policies and programs in Chapter 5 - Open Space for Outdoor Recreation & Access for All. There are no conflicts between the draft proposed Element and the Recreation and Community Services Element.
Safety Element: The Safety Element addresses a number of community health and safety topics, including such things as flood, fire hazards, slope stability, etc. This includes, by reference, the County-wide Hazard Mitigation Plan, as required by the Disaster Mitigation Act of 2000. The Hazard Mitigation Plan has been prepared through a coalition of San Mateo County cities and special districts, to pool resources and create a uniform and coordinated hazard mitigation strategy across the county. The Hazard Mitigation Plan is updated on a 5- year basis, with the next update scheduled for later this year. The Programs provided in the
Open Space Plan cross reference the Safety Element to ensure that open space planning accounts for safety hazards and provides for safety buffers. See the programs provided under Goal OS.6 “Open space is considered in concert with hazard mitigation”.
Land Use Element: The Land Use Element designates land uses throughout the City and contains the Land Use Diagram that shows the areas designated as OS- Open Space. At the workshops, referenced above, there was discussion of possibly processing an amendment to the General Plan Land Use Map and Zoning Districts Map, to designate certain lands that the City has obtained over the last 30 years +/- in the upper Brisbane Acres as open space.
However, upon further consideration and in consultation with the City Attorney, it was determined that such an amendment should be postponed to evaluate potential conflicts under State housing law related to downzoning of residentially zoned property.
Leaving these parcels designated as they are does not reduce the protection of the City-owned properties as open space, nor is it in conflict with the draft Open Space Element. Note that in early 2025, the City recorded a Declaration of Restrictions at the County Recorder’s Office on all Brisbane Acres properties owned by the City. The declaration was recorded for the purposes of “restricting the use of the properties in perpetuity solely for habitat preservation or open space purposes” (excerpt from recorded declaration).
Outreach & Review:
In addition to the commissions and committees indicated above, whose feedback has been used to prepare the draft Element that’s before the Commission tonight, the draft Element was also provided to the following departments, agencies or organizations. • CA Department of Conservation
• Native American Tribes (various)
• San Bruno Mountain Watch
• San Mateo County Parks
• US Fish & Wildlife Service
• CA Department of Fish & Wildlife
• North County Fire Authority
• City Engineer/Director of Public Works
• City Manager’s Office
• City Clerk
• Parks & Recreation Director
• City Attorney
In addition to the required notice of public hearing, over the course of the update process, staff provided outreach to the Brisbane community through STAR articles, the latest being the May 2026 edition, and the City’s other social media platforms. Information on the update was also
provided at the Community Development Department’s information booth at the Day-in-the Park event in 2025.
As of the time of this writing, no comments have been received on the contents of the draft Element that have not already been incorporated into the Element or individually addressed.
Comments received after the agenda report is published will be provided to the Planning Commission as written correspondence.
ATTACHMENTS:
A. Draft Resolution 2026-GPA-01 (including the Draft Open Space Element, dated 4/6/2026)
B. Goals, Policies and Programs Comparison Table, 1994 to Current Draft C. The Brisbane General Plan – all elements weblink (as adopted in 1994 and amended) https://www.brisbaneca.gov/339/The-Brisbane-General-Plan D. Open Space Element – specific element weblink (as adopted in 1994) https://www.brisbaneca.gov/DocumentCenter/View/612/Chapter-VII-Open-Space-PDF ___________________________ ______________________________________ Ken Johnson, Senior Planner Julia Ayres, Community Development Director
City Council Staff Report
Meeting Date: July 16, 2026
From: Carolina Yuen, Finance Director
Subject: Acceptance of the Fiscal Year 2023-2024 Audit Reports Recommendation
Staff recommend City Council accept the FY 2023-2024 Audit report, also known as the Annual Comprehensive Financial Report, the correlating Memorandum on Internal Control and FY2023-2024 Single Audit.
Background
The financial statements of the City of Brisbane for the fiscal year ending June 30, 2024, were prepared by the Finance staff and examined by an independent auditing firm, Maze and Associates, in accordance with Governmental Accounting Standards Board (GASB) Statement
34. The opinion expressed by the auditors is that the financial statements present fairly, in all material respects, the respective financial position of the City as of June 30, 2024, and that the financial statements were prepared in conformity with general accepted accounting principles (GAAP).
The Finance staff incorporates the financial statements into the Annual Comprehensive Financial Report (ACFR), the purpose of which is to present an easily readable and organized report on the financial transactions of the City. The ACFR provides members of the public with a wide variety of information needed to evaluate the financial condition of the City. The final step in the formal process of preparing these financial statements is to transmit them to the City Council for acceptance.
Discussion
Discussion of General Fund Results
The City’s General Fund revenues increased by $7.0 million to $35.4 million, or 24.5% compared to the prior fiscal year amount of $28.5 million. General Fund revenues increased primarily due to sales taxes, property taxes, charges for services, and grant monies received compared to prior year.
The City’s General Fund expenditures totaled $32.1 million, an increase of $341.0 thousand from prior year expenditures of $31.2 million, or 1.1%. One-time expenditures included repairs to the storm drains and roads after the 2022-2023 storms, and other pass-through costs that were reimbursed through grant funds. Other departmental costs included planning activity and support to address the commercial developments at Sierra Point, and the continued increase in costs of goods, services, utilities and salary and benefit costs.
Additional details and information regarding the other operating and internal service funds can be found in the attached financial statements and notes to the financial statements.
FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of the City of Brisbane increased by $9.6 million, or
5.7%, to $177.2 million, of which $135.4 million represents governmental assets and deferred outflows and $41.9 million represents business-type assets and deferred outflows.
• As of June 30, 2024, the City’s total liabilities and deferred inflows increased by $10.9 million, or 13.7%, to $90.3 million, of which $77.6 million represents governmental liabilities and deferred inflows and $12.8 million represents business-type liabilities and deferred inflows.
• The assets and deferred outflows of the City exceed its liabilities and deferred inflows by $86.9 million (net position). Of this amount, ($12.5) million represents unrestricted net position which may be used to meet the government’s ongoing obligations to constituents through programs, creditors or to make payments towards unfunded retirement liabilities.
• The total net position decreased by $1.3 million primarily because the City experienced an increase in operating expenses greater than the increase in property and sales taxes. • At the close of the current fiscal year, the City of Brisbane’s governmental funds reported combined fund balances of $27.3 million. Approximately 12.7% of this amount, $3.5 million, is available for spending at the government’s discretion (unassigned fund balance).
• City-wide revenue increased by $8.2 million, or 21.0%, to $47.2 million, of which $38.0 million was generated by governmental activities and $9.2 million was generated by business-type activities.
• City-wide expenses increased by $10.7 million, or 28.3%, to $48.5 million, of which $37.4 million were generated by governmental activities and $11.1 million were generated by business-type activities.
Overview of the Financial Statements
The City of Brisbane’s basic financial statements consist of three components: 1) governmentwide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The ACFR also includes supplementary information intended to furnish additional detail to support the basic financial statements.
Government-Wide financial statements. The government-wide financial statements provide a corporate-like long-term view of the City's activities as a whole and include the Statement of Net Position and the Statement of Activities. They are presented using the accrual basis of accounting.
The statement of net position is designed to show bottom line results for the City and its governmental activities. This statement uses a full-accrual basis and combines and consolidates governmental funds’ current financial resources (short-term spendable assets) with capital assets and long-term obligations.
The statement of activities is focused on both the gross and net cost of various activities that are supported by the government’s general tax and other revenues. This is intended to summarize and simplify the user’s analysis of the cost of various governmental services.
Both government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities include general government (City Council, City Manager, City Attorney, City Clerk, Human Resources, Finance, and Community Development), public safety (Police and Fire), and Public Works. These services are supported by general City revenues such as sales taxes, property taxes, hotel taxes, and by specific program revenues such as fees.
Business-type activities include the Utility Fund (Water, Sewer, and GVMID) and the Marina Fund. Unlike governmental services, these services are supported by charges paid by users for the amount of service they use.
Fund Financial Statements. A Fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Brisbane, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the City’s funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.
However, unlike government-wide financial statements, governmental fund financial statements focus on the near-term inflows and outflow of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
The City maintains individual governmental funds. Information is presented separately in the Fund Financials by major funds. The General Fund is always considered a major fund while other major funds are determined by formula and may change from year to year. Data from the non-major governmental funds is combined into a single, aggregated presentation.
Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the required supplementary information section of this report.
Proprietary funds. The City of Brisbane maintains two different types of proprietary funds.
Enterprise funds are used to report the same functions presented as business-type activities in the government-wide statements. The City uses enterprise funds to account for its Water and Sewer Utility Services and for its Marina. Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for the management of its employee’s health and retirement benefits (health, dental, fringe & OPEB), cost allocation of citywide assets (vehicles and facility maintenance) and risk management (workers' compensation and liability insurance).
Proprietary funds statements provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Utility and the Marina Funds which are both considered major funds.
Since the City’s Internal Service Funds provide goods and services only to the City’s Governmental and Business-type Activities, their activities are reported only in total at the Fund level. Internal Service Funds may not be Major Funds because their revenues are derived from other City funds. These revenues are eliminated in the Government-Wide Financial Statements, and any related profits or losses are returned to the activities that created them, along with any residual net assets of the Internal Service Funds. Individual fund data for the internal service funds are provided in the form of combined statements in the required supplementary information section of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
Fund Balance and summary
Ending Fund Balance in the General Fund for FY2023-24 is reported at $24.0 million, an increase of $8.5 million from prior year, or 54.6%. The unassigned balance of $18.0 million would be further reduced based on fund commitments and the Reserve Policy adopted by Council to set money aside for recessions, unanticipated events and annual fluctuations in the budget, leaving $2.8 million in available reserves.
Other notable events:
Atmospheric River Storms – Over the 2022-2023 New Year’s Day holiday weekend, recordsetting heavy rains and snow caused flooding caused dangerous flooding across the State of California. The City experienced heavy rains and high tides which caused flooding in low lying areas of the City and significant debris flow sent mud, water and other materials down several roads and recreational trails and into the storm drains and downed trees. The City applied for federal aid to reimburse the costs of clean-up, repairs, and mitigation to upgrade the storm drain system. Projected costs totaled $2,500,000, and the City were obligated to receive reimbursement from FEMA and CalOES in the amount of $2,200,000 through FY24. The majority of the repair costs occurred in FY24. Because the payments were received from a federal agency (FEMA), a single audit was conducted to review the accounting of the related transactions. (addressed later in this report)
Funding of 2023 Lease Revenue Bonds – In July 2023, the Brisbane/Guadalupe Valley Municipal Improvement District Financing Authority issued $5,385,000 in principal amount of Lease Revenue Bonds, Series 2023. The Bonds were issued primarily to finance the costs of tenant improvements to, and related equipment and furnishings for 25 Park Place leased by the City and used for municipal purposes.
The funding of the bonds is reflected on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance as Issuance of debt and SBIT and further described in Note 7 – Long-term Debt in the Notes to Basic Financial Statements.
Implementation of GASB 96 – The objective of this pronouncement is to improve accounting and financial reporting for Subscription-based Information Technology Arrangements (SBITA) by governments. A SBITA is a contract that conveys control of the right to use another party’s IT software, alone or in combination with tangible capital assets, as specified in the contract to a period of time in an exchange or exchange-like transaction. During the fiscal year, the City entered into one SBITA with Clariti Cloud Inc. for its permitting software that qualifies to be recorded under GASB 96. At the commencement of the SBITA, the City initially recognizes a liability, measured at the present value of payments expected to be made during the contract term. The future principal and interest subscription liability payments as of June 30, 2024, total $1.4 million. Over the term, the subscription liability is reduced by the principal portion of the payments made. The subscription asset is initially measured as an equal amount of the subscription liability, adjusted for payments made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straightline basis over shorter of the subscription term or useful life of the underlying IT assets. GASB 96 improves transparency by requiring government agencies to recognize the liability of a longterm contract that previously was reported only as annual operating costs. The SBITA assets are reported with other capital assets and lease liabilities are reported with long-term debt on the Statement of Net Position and further described in Note 12 – Subscription-based Information Technology Arrangements in the Notes to Basic Financial Statements.
Memorandum on Internal Control
In accordance with Government Auditing Standards, the auditors issue the Memorandum on Internal Control (MOIC) as an integral part of the audit to accompany the ACFR. The purpose of the MOIC is solely to describe the scope of their testing of internal control over financial reporting and compliance as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing an opinion on the financial statements, and the results of that testing. The MOIC does not provide an opinion on the effectiveness of the City’s internal control over financial reporting or compliance.
The MOIC is addressed to City Council for the following key reasons:
Audit Requirements: Auditing standards (U.S. GAAS) require independent auditors to report significant deficiencies or material weaknesses in internal control to the governing body.
Oversight Responsibility: The council must monitor the performance of internal controls to prevent or detect errors and fraud. The memo provides them with necessary information to oversee management's corrective actions.
Transparency and Accountability: The memorandum ensures that elected officials are aware of risks, allowing them to verify that public dollars are managed responsibly.
Actionable Advice: The report outlines opportunities for strengthening internal controls, which the council uses to ensure city staff make improvements.
The MOIC is intended for the information and use of management, City Council, others within the organization, and other related agencies or pass-through entities. The MOIC provides a Summary of Findings/Schedule of Other Matters that is divided into the following three sections:
Schedule of Material Weakness – 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.
The delay in the preparation of the audit and production of the financial statements led to a comment in the Schedule of Material Weakness which was repeated from Fiscal Year 2023. The delay was due to staff constraints, two executive retirements, several family emergency and leave situations within the Finance Department, and significant hurdles encountered during the implementation of a budgeting software application.
Additional delays in finalizing the audit were encountered as the Finance Department was responsible for rolling out a new business license administration partnership and involved in the implementation and integration of software record systems of two other departments (Planning and Marina). The auditor's recommendation includes analyzing staff resources to determine better alternatives and procedures to ensure
financial data is processed timely. Staff agree with the recommendation and have implemented a plan to complete the outstanding audit for FY25 that has been behind schedule as a result of the delay in the FY23 and FY24 audits. Departmental functions have been reassigned to enhance efficiencies without losing financial integrity of the transactional records. Staff have replaced financial software applications with more robust and vendor-supported tools. The department’s monthly and year-end task timelines have been updated and will be reinforced by staff.
Schedule of Significant Deficiencies – 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.
Delays in preparation and reviewing the monthly bank reconciliations and journal entries led to comments in the Schedule of Significant Deficiencies which were repeated from Fiscal Year 2023. Similarly, the MOIC included a comment in the Schedule of Significant Deficiencies related to the delay in the preparation of the Single Audit. As mentioned earlier, the delays were due to staff constraints, two executive retirements, several family emergencies and leave situations within the Finance Department, and significant hurdles encountered during the implementation of a budgeting software application. Supervisory staff responsible for month-end processes and reviews were also participating in the transition to a new business license administration partnership, and the implementation and integration of software record systems of land permitting system and Marina billing and berth management system.
The auditor recommendation includes targeting the month-end preparation and review to a shorter window between 30 and 45 days. Timeliness of the journal entries would also facilitate more accurate and earlier year-end close procedures. Staff agree with the recommendation. Finance is staffed adequately when all employees are present, which was a challenge when staffing was limited for extended periods of time during FY24 and months during the annual financial statement preparation. The department’s monthly and year-end task timelines have been updated and will be reinforced with staff.
Management has identified contingency back-up plans at supervisory levels to bring in additional resources if similar staffing situations arise in the future.
Schedule of Other Matters – this schedule includes recommendations not meeting the above definitions that the auditors believe are opportunities for strengthening controls and operating efficiency. Also included in this section are an alert to new accounting pronouncements taking effect in subsequent fiscal years or near future.
For fiscal year 2024, there were no additional recommendations in this section.
Included were several discussions of upcoming accounting pronouncements.
Management is required to respond to any comments, but the responses have not been subjected to audit procedures applied in the audit of the financial statements and, accordingly,
the auditors do not express an opinion on the responses.
Staff find the MOIC to be an important tool to provide feedback on the operations and discuss best practices and risk mitigation. The MOIC is addressed to the City Council because they are recognized as “those charged with governance.” While day-to-day management is handled by city staff, the City Council acts as the final check on financial integrity.
Single Audit Report
A Single Audit, also known as a Uniform Guidance Audit, is a financial reporting and compliance audit focused on non-Federal entities that expend a specific threshold in aggregate federal financial assistance within any given fiscal year. For Fiscal Year 2024, the threshold was at least $750,000. The results provide information necessary to improve the stewardship over Federal assistance provided to those entities. The City of Brisbane received and expended Federal financial assistance of $1.9 million in Fiscal Year 2024 from FEMA in response to the storms of 2022-2023 and is therefore required to undergo a Single Audit. Maze & Associates were engaged to conduct the Single Audit.
Single Audits are comprised of two main sections:
Financial Statements: The audit of a recipient’s financial statements, policies, documentation and system of internal controls. The auditor’s report includes an opinion on the Schedule of Expenditures of Federal Awards (SEFA) and related Notes, a report on internal controls, and a Schedule of Findings and Questioned Costs.
The results of tests conducted by the auditors disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
Programmatic Compliance Evaluation: To test a recipient’s compliance with the requirements of their federal awards which often assess the effectiveness of award spending and evaluate performance progress.
In Maze’s opinion, the City complied in all material respects, with the compliance requirements that could have a direct and material effect on the federal program for the year ended June 30, 2024.
Fiscal Impact
There is no fiscal impact by accepting this report.
Attachments
1. Brisbane ACFR 2024
2. Brisbane MOIC 2024
3. Brisbane 2024 Single Audit
City Manager Approval
Jeremy Dennis, City
Manager
07/10/2026
Attachment 1
CITY OF BRISBANE
CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024
Prepared by:
City of Brisbane, Finance Department
Carolina Yuen, Finance Director
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City of Brisbane
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
TABLE OF CONTENTS
INTRODUCTORY SECTION
Table of Contents ...................................................................................................................................... i Letter of Transmittal ................................................................................................................................ v Organizational Chart .............................................................................................................................. xii Principal Officials of the City of Brisbane, California ......................................................................... xiii
FINANCIAL SECTION
Independent Auditor’s Report ............................................................................................................. 1 Management’s Discussion and Analysis
(Required Supplementary Information, Unaudited) ................................................................... 5 Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position ......................................................................................................... 18 Statement of Activities ............................................................................................................. 19 Fund Financial Statements:
Governmental Funds Financial Statements:
Balance Sheet ........................................................................................................................ 22 Reconciliation of the Governmental Funds – Balance Sheet with the Statement of Net Position .................................................................................... 23 Statement of Revenues, Expenditures and Changes in Fund Balance ................................. 24 Reconciliation of the Net Changes in Fund Balances – Total Governmental Funds with the Statement of Activities ........................................................................................ 25 Proprietary Funds Financial Statements:
Statement of Net Position ..................................................................................................... 28 Statement of Revenues, Expenses and Changes in Fund Net Position ................................. 29 Statement of Cash Flows ....................................................................................................... 30 Fiduciary Funds Financial Statements:
Statement of Net Position ..................................................................................................... 32 Statement of Changes in Net Position ................................................................................... 33 Notes to Basic Financial Statements ...................................................................................................... 35 i
City of Brisbane
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
TABLE OF CONTENTS
FINANCIAL SECTION (Continued)
Required Supplementary Information:
Schedule of Proportionate Share of the Net Pension Liability and Related Ratios – CalPERS Miscellaneous Cost-Sharing Defined Benefit Pension Plan .................................. 96 Schedule of Contributions –
CalPERS Miscellaneous Cost-Sharing Defined Benefit Pension Plan ................................. 98 Schedule of Proportionate Share of the Net Pension Liability and Related Ratios – CalPERS Safety Cost-Sharing Defined Benefit Pension Plan .............................................100 Schedule of Contributions –
CalPERS Safety Cost-Sharing Defined Benefit Pension Plan .............................................102 Schedule of Changes in the Net Pension Liability and Related Ratios – PARS Miscellaneous Plan, Agent-Multiple Employer Defined Benefit Plan .....................104 Schedule of Contributions –
PARS Miscellaneous Plan, Agent-Multiple Employer Defined Benefit Plan .....................106 Schedule of Changes in the City’s Net OPEB Liability and Related Ratios ...........................108 Schedule of Employer Contributions – OPEB Plan ................................................................109 Schedule of Revenues, Expenditures and Changes in Fund Balance Budget and Actual:
General Fund .....................................................................................................................110 Low and Moderate Income Housing Assets Special Revenue Fund .................................111 Notes to Required Supplementary Information .......................................................................112 Supplemental Information:
Non-Major Governmental Funds:
Combining Balance Sheet ........................................................................................................118 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances ..................124 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual .............................................................................................................130 Internal Service Funds:
Combining Statement of Net Position .....................................................................................140 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .................142 Combining Statement of Cash Flows ......................................................................................144 Custodial Funds:
Combining Statement of Net Position .....................................................................................148 Combining Statement of Changes in Net Position ..................................................................150 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 ......................153 ii
City of Brisbane
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
TABLE OF CONTENTS
STATISTICAL SECTION (Unaudited)
Net Position by Component ...........................................................................................................157 Changes in Net Position .................................................................................................................158 Fund Balances of Governmental Funds .........................................................................................160 Changes in Fund Balance of Governmental Funds ........................................................................162 Governmental Activities Tax Revenues by Source ........................................................................164 Assessed Value and Estimated Actual Value of Taxable Property ................................................166 Property Tax Rates .........................................................................................................................167 Principal Property Taxpayers .........................................................................................................168 Property Tax Levies and Collections .............................................................................................169 Ratios of Outstanding Debt by Type ..............................................................................................170 Ratios of General Bonded Debt Outstanding .................................................................................171 Direct and Overlapping Governmental Activities Debt .................................................................172 Legal Debt Margin Information .....................................................................................................174 Pledged Revenue Coverage ............................................................................................................176 Demographic and Economic Statistics ...........................................................................................177 Principal Employers .......................................................................................................................178 Full-Time Equivalent City Government Employees by Function ..................................................180 Operating Indicators by Function ...................................................................................................182 Capital Asset Statistics by Function ...............................................................................................184 iii
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v
vi
vii
viii
ix
x
xi
FY2023/2024
City of Brisbane Organizational Chart
City Council
Community
Development
Director
City Attorney
Parks &
Recreation
Director
Finance
Director
City Clerk
City Manager
Police Chief
Public Works Director/
City Engineer/
Director of Emergency Services Fire Chief
Management Analyst/Deputy City Clerk
• Administrative Assistant• Crossing Guard• Recreation Supervisor • Recreation Program Coordinator
• Senior Recreation Leaders • Preschool Teacher • Recreation Leaders• Recreation Leader Aide • Facility Attendant• Head Lifeguard • Swim Instructor• Lifeguard • Financial Services Manager• Administrative Management Analyst
• Accounting System Analyst• Senior Accounting Assistant• Accounting Assistant II• Office Specialist• Information & Tech. & Systems Administrator
• Principal Planner • Senior Planner• Community Development Technician
• Administrative Assistant
• Police Commander• Police Corporal • Administrative
Management Analyst
• Police Sergeant• Police Officer • Code Enforcement
Officer
• Office Specialist –
Police Records
• Crossing Guard • Community Services
Officer
• Harbormaster• Administrative
Assistant
• Marina Maint
Worker I/II
• Deputy Director of Public
Works
• GIS Manager• Sustainability Manager• Assistant Engineer II • Public Works Team Leader • Public Works Lead Maint• Public Works Maint Workers I/II
• Public Facilities Maint Worker• Water Quality Technician• Regulatory Compliance Officer
• Public Works Inspector• Administrative Assistant
• Assistant Fire Marshal• Fire Captain• Firefighter • Firefighter I• Firefighter/Paramedic • Firefighter/Paramedic I• Management Analyst • Management
Analyst
• Office
Assistant
Communications & Digital Media Coordinator Office Assistant Human
Resources
Director
Assistant to the City
Manager
xii
CITY OF BRISBANE
Principal Officials of the City of Brisbane, California Successor Agency to the Brisbane Redevelopment Agency
Guadalupe Valley Municipal Improvement District
and
Brisbane Public Financing Authority
For the Year Ended June 30, 2024
CITY COUNCIL/BOARD MEMBERS
Terry O’Connell, Mayor / Board Chairperson
Karen Cunningham, Mayor Pro Tempore / Board Vice-Chairperson Madison Davis, Council Member / Board Member
Cliff Lentz, Council Member / Board Member
Coleen Mackin, Council Member / Board Member
STAFF MEMBERS
Jeremy Dennis
City Manager, Agency Executive Director, District Manager Thomas McMorrow
City Attorney, Agency / District Legal Counsel
Carolina Yuen
Finance Director / Treasurer
Ingrid Padilla
City Clerk
John Swiecki
Community Development Director
Lisa Macias
Police Chief
Randy Breault
Public Works Director / City Engineer
xiii
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the City Council
City of Brisbane, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of the City of Brisbane (City), California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof, and the respective budgetary comparisons listed in the Table of Contents as part of the basic financial statements for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 1
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal controlrelated matters that we identified during the audit. 2
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other Required Supplementary Information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 3
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 6, 2026, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Pleasant Hill, California
July 6, 2026
4
Management’s Discussion and Analysis
As management of the City of Brisbane, we offer readers this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2024. Readers are encouraged to consider the information presented here in conjunction with additional information furnished in the letter of transmittal, which can be found on pages v-xi of this report.
FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of the City of Brisbane increased by $9.6 million, or 5.7%, to $177.2 million, of which $135.4 million represents governmental assets and deferred outflows and $41.9 million represents business-type assets and deferred outflows. • The City’s total liabilities and deferred inflows increased by $10.9 million, or 13.7%, to $90.3 million, of which $77.6 million represents governmental liabilities and deferred inflows and $12.8 million represents business-type liabilities and deferred inflows. • The assets and deferred outflows of the City exceed its liabilities and deferred inflows by $86.9 million (net position). Of this amount, ($12.5) million represents unrestricted net position which may be used to meet the government’s ongoing obligations to constituents through programs, creditors or to make payments towards unfunded retirement liabilities.
• The total net position decreased by $1.3 million primarily because the City experienced an increase in operating expenses greater than the increase in sales taxes and property taxes.
• At the close of the current fiscal year, the City of Brisbane’s governmental funds reported combined fund balances of $27.3 million. Approximately 12.7% of this amount, $3.5 million is available for spending at the government’s discretion (unassigned fund balance). • City-wide revenue increased by $8.2 million, or 21.0%, to $47.2 million, of which $38.0 million was generated by governmental activities and $9.2 million was generated by business-type activities.
• City-wide expenses increased by $10.7 million, or 28.3%, to $48.5 million, of which $37.4 million were generated by governmental activities and $11.1 million were generated by business-type activities.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City of Brisbane’s basic financial statements which consists of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also includes supplementary information intended to furnish additional detail to support the basic financial statements.
5
Government-Wide financial statements. The government-wide financial statements provide a corporate-like long-term view of the City's activities as a whole, and include the Statement of Net Position and the Statement of Activities. They are presented using the accrual basis of accounting.
The statement of net position is designed to show bottom line results for the City and its governmental activities. This statement uses full-accrual basis and combines and consolidates governmental funds’ current financial resources (short-term spendable assets) with capital assets and long-term obligations.
The statement of activities is focused on both the gross and net cost of various activities that are supported by the government’s general tax and other revenues. This is intended to summarize and simplify the user’s analysis of the cost of various governmental services.
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities include general government (City Council, City Manager, City Attorney, City Clerk, Human Resources, Finance, and Community Development), public safety (Police and Fire), and Public Works. These services are supported by general City revenues such as sales taxes, property taxes, hotel taxes, and by specific program revenues such as fees.
Business-type activities include the Utility Fund (Water, Sewer, and Guadalupe Valley Municipal Improvement District) and the Marina Fund. Unlike governmental services, these services are supported by charges paid by users for the amount of service they use.
The government-wide financial statements can be found on pages 18 to 19 of this document.
Fund Financial Statements. A Fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Brisbane, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the City’s funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on the near-term inflows and outflow of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 6
The City maintains individual governmental funds. Information is presented separately in the Fund Financials by major funds. The General Fund is always considered a major fund while other major funds are determined by formula and may change from year to year. Data from the non-major governmental funds is combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the required supplementary information section of this report.
The basic governmental fund financial statements can be found on pages 22-25 of this report.
Proprietary funds. The City of Brisbane maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the governmentwide statements. The City uses enterprise funds to account for its Water and Sewer Utility Services and for its Marina. Internal Service funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for the management of its employee’s health and retirement benefits (health, dental, fringe & OPEB), cost allocation of city-wide assets (vehicles and facility maintenance) and risk management (workers compensation and liability insurance).
Proprietary funds statements provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Utility and the Marina Funds which are both considered major funds.
Since the City’s Internal Service Funds provide goods and services only to the City’s Governmental and Business-type Activities, their activities are reported only in total at the Fund level. Internal Service Funds may not be Major Funds because their revenues are derived from other City funds.
These revenues are eliminated in the Government-Wide Financial Statements and any related profits or losses are returned to the activities that created them, along with any residual net assets of the Internal Service Funds. Individual fund data for the internal service funds are provided in the form of combining statements in the required supplementary information section of this report.
The basic proprietary fund financial statements can be found on pages 28-30 of this report.
Comparison of Budget and Actual financial information is presented for the General Fund and Major Special Revenue Funds in the Required Supplementary Information. Budget and Actual financial information for non-major funds is presented in the Supplementary Information.
Fiduciary Statements. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. While these Funds represent trust responsibilities of the government, these assets are restricted in purpose and do not represent discretionary assets of the government.
Therefore, these assets are not presented as part of the government-wide financial statements. The accounting for these funds is similar to that used for proprietary funds.
The City maintains two types of Fiduciary Funds. The Private Purpose Trust Fund is used to report resources held in trust for the Successor Agency of the Redevelopment Agency. The Agency funds report resources held by the City in a custodial capacity for individuals, private organizations and other governments.
The fiduciary fund financials can be found on pages 32-33 of this report. 7
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 35-93 of this report.
Other supplemental information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City.
The combining statements referred to earlier in connection with non-major governmental funds and internal service funds are presented immediately following the required supplementary information.
Combining and individual fund statements and schedules can be found on pages 118-145 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The following table reflects a condensed Statement of Net position compared to the prior year. 2024 2023 2024 2023 2024 2023
Current Assets $ 38,884 $ 30,789 $ 5,777 $ 7,378 $ 44,661 $ 38,167 Capital assets 76,014 71,224 31,656 32,417 107,670 103,641 Other non-current assets 3,202 3,327 2,296 2,296 5,498 5,623 Total assets $ 118,100 $ 105,340 $ 39,729 $ 42,091 $ 157,829 $ 147,431 Deferred Outflows $ 17,253 $ 18,886 $ 2,159 $ 1,324 $ 19,411 $ 20,210 Current liabilities $ 12,477 $ 6,462 $ 2,732 $ 2,772 $ 15,209 $ 9,234 Non-current liabilities 60,217 51,504 8,953 9,092 69,170 60,595 Total liabilities $ 72,693 $ 57,966 $ 11,686 $ 11,864 $ 84,379 $ 69,830 Deferred Inflows $ 4,887 $ 9,165 $ 1,066 $ 459 $ 5,953 $ 9,624 Net position:
Net investment in capital assets $ 56,220 $ 53,119 $ 26,351 $ 26,698 $ 82,571 $ 79,817 Restricted 16,046 15,275 759 759 16,805 16,034
Unrestricted (14,493) (11,300) 2,026 3,636 (12,467) (7,664) Total net position $ 57,095 57,773 $ 29,136 $ 31,092 $ 86,909 $ 88,187 $ Business-Type Activities Total
Government-Wide
Statement of Net Position
As of June 30,
Governmental Activities
(in thousands)
For more detailed information see the Statement of Net Position (page 18). 8
Over time, net position may serve as a useful indicator of a government's financial position. In the case of the City of Brisbane, assets and deferred outflows exceeded liabilities and deferred inflows by $86.9 million at the close of the most recent fiscal year.
By far the largest portion of the City's net position, $82.6 million, reflects its investment in capital assets (e.g., land, buildings, machinery, equipment, and infrastructure); less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City's net position, $16.8 million, represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position may be used to meet the government's ongoing obligations to citizens and creditors.
As of June 30, 2024, the City is reporting a negative balance in Unrestricted net position of governmental activities as a result of the Capital Projects Fund and several Non-Major funds having a negative balance. City-wide however, there is a positive net position.
9
Government Wide
Statement of Activities
As of June 30,
(in thousands)
Governmental
Activities
Business-Type
Activities Total
2024 2023 2024 2023 2024 2023
Revenues:
Program revenues:
Charges for services $ 12,058 $ 11,543 $ 9,050 $ 8,241 $ 21,107 $ 19,784 Operating contributions and
grants
5,796 1,372 - - 5,796 1,372
Capital contributions and grants - 27 - - - 27
Total program revenues 17,854 12,942 9,050 8,241 26,904 21,183
General revenues:
Property taxes 6,624 6,201 34 35 6,657 6,236
Sales taxes 7,488 6,406 - - 7,488 6,406
Transient occupancy tax 2,114 2,151 - - 2,114 2,151
Other taxes 2,047 2,383 - - 2,047 2,383
Total taxes 18,272 17,141 34 35 18,306 17,176
Investment earnings (loss) 1,758 494 61 (97) 1,819 396
Other revenue 130 172 20 60 150 232
Total revenues $ 38,014 $ 30,749 $ 9,165 $ 8,239 $ 47,179 $ 38,988 Expenses:
General government $ 12,589 $ 11,022 $ - $ - $ 12,589 $ 11,022 Public safety - police 7,442 5,689 - - 7,442 5,689
Public safety - fire 5,228 3,865 - - 5,228 3,865
Public works 7,887 4,804 - - 7,887 4,804
Parks and recreation 3,330 3,069 - - 3,330 3,069
Interest on long-term debt 894 261 - - 894 261
Water - - 3,392 2,417 3,392 2,417
Sewer - - 2,464 2,428 2,464 2,428
Guadalupe Valley
Muni Imp District
- - 3,077 2,581 3,077 2,581
Marina - - 2,155 1,646 2,155 1,646
Total expenses $ 37,370 $ 28,710 $ 11,087 $ 9,072 $ 48,457 $ 37,781
Increase/decrease in net
assets before transfers $ 644 $ 2,039 $ (1,922) $ (833) $ (1,278) $ 1,206 Transfers 34 29 (34) (29) - -
Special items - - - - - -
Increase/decrease in net assets 678 2,068 (1,956) (862) (1,278 1,206
Net position - beginning of year 57,094 55,026 31,092 31,954 88,186 86,980 Net position - end of year $ 57,773 $ 57,094 $ 29,135 $ 31,092 $ 86,908 $ 88,186
10
Governmental activities. Program revenues generated 47% of the City’s governmental revenues.
The major sources of these revenues are providing services to outside agencies, redistributing the cost of governmental services to the operating departments through a cost allocation plan, and capital contribution and grants. The City’s property tax revenues increased by 6.8%. The City will continue to receive property tax from the former redevelopment agency when the property tax is greater than the amount needed to pay recognized obligations and pass-through payments. The Sales Tax revenue increased by 16.9% over the prior year. Hotel taxes (transient occupancy) decreased by $37 thousand, or 1.7%, reflecting steady activity in the local hospitality industry.
As would be anticipated in a government, those areas which provide the least private-good oriented services have the highest net cost. Police and Fire services are provided to the whole community and City Council has made the decision that these services should be paid for by the community as a whole through its general taxes (Property, Sales, and others).
Business-type Activities. Business-type net position accounts for 33.5% of the City's total net position and showed a decrease over prior year.
• Program revenues increased by 9.8% primarily due to the increase in water and sewer rates.
• Expenses increased by 22.2% primarily due to the increase in sewer treatment, pension cost, indirect costs and increase in cost of emergency repairs to both Utility and Marina operations.
FINANCIAL ANALYSIS OF GOVERNMENTAL AND PROPRIETARY FUNDS As noted earlier, the City of Brisbane uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental Funds. The focus of the City of Brisbane’s governmental funds is to provide information on near-term inflow, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary uses as they represent the portion of the fund balance which has not yet been limited to use for a particular purpose by either an external party, the City itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the City Council.
Charges for Services
32%
Other Program
Revenues 15%
Property Taxes 17%
Sales Taxes 20%
Transient Occupancy
Tax 6%
Other Revenues 10%
Resources by Source - Governmental Activities
11
At June 30, 2024, the City’s Governmental Funds reported combined Fund Balances of $27.3 million, an increase of $1.9 million compared to prior year.
Revenues from Governmental Funds increased by $6.7 million, or 21.3%, from the prior year for a total of $38.0 million, primarily due to an increase in Sales and Property Taxes, and intergovernmental grant funding received in the amount of $5.5 million. Whereas Governmental Fund expenditures increased by $7.5 million for a total of $42.6 million, primarily due to repairs as a result of the atmospheric river storms and preventative improvements, capital outlay and one-time retirement payouts.
General Fund – The General Fund ended the year with a fund balance of $24 million. Of this amount, $3.5 million is nonspendable including: Encumbrances, Advances to Other Funds, and Loans Receivables. The Unassigned portion of the Fund Balance is $18 million. The General Fund’s reserves still met the Council’s policy of 50% of its expenditures in reserves.
The City’s General Fund revenue increased by $7.0 million. Tax revenues increased by $711.9 thousand, or 4.3%, over prior year, including an increase of $422 thousand in property taxes and an increase of $580 thousand in sales taxes. Secured property taxes decreased by $272.2 thousand, or 8%, the excess funds returned to the City from the state’s Educational Revenue Augmentation Fund (ERAF) increased by $57.6 thousand. The property tax decrease included adjustments but steady activity within the revenue source. Sales taxes increased primarily due to several one-time large purchases but remain strong. The transient occupancy tax saw a decrease from prior year in the amount of $91 thousand. The increase of licenses, permits and fees of $50 thousand, was due to the slowdown in franchise taxes and gas tax, offset by continued growth in permits for development projects. The City was awarded grants in the amount of $5.5 million, including $2.2 million from FEMA in response to the 2022-2023 Atmospheric River Storms, $2.3 million from the California Department of Toxic Substance Control for a pass-through grant for development environmental investigation activities, and $912.5 thousand in other reimbursement grants.
General Fund expenditures increased by $341 thousand. One-time expenses included repairs to the storm drains and roads after major storms, other capital outlay and grant-related pass-through charges. Other departmental costs included planning activity and support to address the commercial developments at Sierra Point, and continued increase in costs of goods, services, utilities and salary and benefit costs. The implementation of GASB 96 for Subscription-Based Information Technology Arrangements (SBITA) increased a one-time charge to capital outlay of $1.3 million.
Low/Mod Income Housing Asset Special Revenue Fund –The City elected to become the Successor Housing Agency effective February 1, 2012. This fund represents the loans receivable for the First Time Home Buyers program, as well as a loan for the Senior Housing. At this time, income is limited for this fund. The loans from the Successor Agency may now be paid, but the amount is determined by a formula applied after all other required obligations have been paid.
Proprietary funds. The City of Brisbane’s statements on proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.
Utility Fund – The Unrestricted net position of the Utility Fund at year end was $31.1 thousand. This was a decrease of $1.9 million as a combination of the increase in charges for services offset by increase in cost of water purchases and sewer treatment.
12
Marina Fund – Fiscal year 2023/24 saw operating revenues slightly decrease by $12.6 thousand as berth rentals usage of live-aboard fees essentially remained steady. Operating expenses increased by $508.9 thousand, primarily due to increase in indirect costs and one-time repairs.
GENERAL FUND BUDGETARY HIGHLIGHTS
At mid-year, revenue estimates were adjusted by $2.2 million for anticipated increases in sales taxes as the first two quarters of taxes came in higher than projected; increase in business activity and the hotel business license tax; licenses, permits and fees and charges for services were also increased.
At mid-year, budgeted expenses were not adjusted. Originally, the City projected the use of $2.6 million from reserves (fund balance) to balance the budget. The mid-year adjustment projected a surplus of $1.8 million. The actual revenue exceeded the final budget by $6.5 million and expenses exceeded the final budget by $5.0 million adding to the fund balance of $3.3 million.
CAPITAL ASSETS
The City of Brisbane's investment in capital assets for its governmental and business-type activities as of June 30, 2024, amounts to $107.7 million (net of accumulated depreciation). This investment in capital assets includes land, improvements, buildings and structures, machinery and equipment, infrastructure (streets, lighting, traffic signals), park facilities, sewer and water infrastructure (water tanks, sewer lift stations, pipes, force mains), and the marina. The total increase in the investment in capital assets for the current fiscal year was $4.0 million. This reflects the additions of land improvements, equipment, Right of Use for SBITAs (GASB 96) and the change in construction in progress for the improvements to the City Hall Annex and various utility projects.
Major capital asset events during the current fiscal year included the following:
• Resurfacing Projects
• Emergency Storm Drain Cleaning Project
• Additional Light Poles
• Purchase of Safety Vehicles
• Implementation of GASB 96 SBITA – Land Permitting Software 13
2024 2023 2024 2023 2024 2023
Non-depreciable assets:
Land and artwork 16,722 $ 16,722 $ $ 648 $ 17,370 648 $ $ 17,370 Construction in progress 3,456 975 228 228 3,684 1,204
Total non-depreciable assets 20,177 17,697 876 21,054 876 18,573 Depreciable assets:
Land improvements 10,920 8,224 13,692 13,692 24,612 21,916 Buildings and structures 26,189 26,189 9,527 12,022 35,716 38,211 Machinery and equipment 5,398 5,104 883 883 6,281 5,987 Right-to-use leased property 8,702 8,721 - - 8,702 8,721 Right-to-use SBITAs 1,414 - - - 1,414 -
Infrastructure 31,758 31,758 34,741 32,245 66,499 64,003 Total depreciable assets 84,380 79,996 58,842 58,842 143,222 138,838 Less accumulated depreciation (28,544) (26,469) (28,062) (27,301) (56,606) (53,770) Total depreciable assets, net 55,837 53,527 30,780 31,541 86,616 85,068 Total capital assets $ 76,014 $ 71,224 $ 31,656 32,417$ $ 107,670 $ 103,641 Activities Activities Total
Capital Assets
As of June 30,
(in thousands)
Governmental Business-Type
Additional information on the City of Brisbane's capital assets can be found in Note 6 on pages 52- 55 of this report.
DEBT ADMINISTRATION
Long-term debt. At the end of the current fiscal year, the City had total debt outstanding of $24.3 million. Of this amount, $1.0 million comprises debt backed by the full faith and credit of the government. The remaining debt represents bonds secured solely by specified revenue sources (i.e., revenue bonds).
2024 2023 2024 2023 2024 2023
Direct Borrowing $ 6,022 $ 6,348 $ 1,373 $ 1,803 $ 7,395 $ 8,151 Revenue bonds 8,745 3,665 5,305 5,720 $ 14,050 9,385
Energy conservation loan 21 35 - - $ 21 35
Capital lease 8,239 8,410 - - $ 8,239 8,410
Subscriptions (SBITA) 1,314 - - - $ 1,314 -
Total $ 24,340 $ 18,458 $ 6,678 $ 7,523 $ 31,018 $ 25,981 Total
Long-Term Debt
at June 30,
Governmental
Activities
Business-type
Activities
(in thousands)
The total debt increased by $5 million during the current fiscal year to recognize the bond initiated to fund improvements for the City Hall Annex.
14
The City of Brisbane maintained an "A+" rating from Standard & Poor's at June 30, 2024. However, the bond rating was removed in late 2025 due to late submission of financial statements.
Additional information on the City's long-term debt can be found in Note 7 pages 55-62.
ECONOMIC OUTLOOK
The City is part of the general San Francisco/Silicon Valley area which continues to see rising property values. There are a handful of businesses that make up a sizable portion of City revenues.
In addition, the City’s room tax revenues are generated by the two hotels located at Sierra Point.
The City works together with the Chamber of Commerce on economic development.
Brisbane has one of the largest (over 500 acres) undeveloped commercial parcels of land remaining in San Mateo County. This parcel is contiguous with the boundaries of the City/County of San Francisco and is located within seven minutes of the San Francisco International Airport. The development of this parcel is expected to take place over the next 30 years. In November 2018, Brisbane voters passed a measure that amended the City’s General Plan to allow for a range of 1,800 to 2,200 residential units and up to 7 million square feet of new commercial development.
Next steps requires the preparation of a Specific Plan for the site to address several policies, including requiring the future development be revenue positive for the City; comply with the highest remediation standard for ground level residential uses; secure and adequate water supply; and incorporate sustainable principles. The developer has prepared and submitted a draft Specific Plan to the City. The City released a draft environmental impact (EIR) for the Specific Plan in 2025 and expected for review the final EIR in 2026. A Development Agreement between the Developer and the City will also be prepared and considered with the Specific Plan. While the related economic benefits to the City from the development of this parcel cannot be estimated at this time, it is anticipated to be significant, possibly capable of providing the City with future revenues.
There are sites within City limits at Sierra Point that have been purchased by developers and developments are at different stages. One site contains a five-building life science complex -- construction began in FY17/18 and the development is largely complete, with all five buildings being occupied under temporary occupancy approvals, with final permits expected by early 2026. A second site contains a three-building life science campus with construction of the core and shell completed in 2023 and temporary occupancy authorized for all three buildings in early 2024. One building and half of the second is fully leased by the same tenant, with the leased buildings fully occupied by the end of 2024. Several additional sites were purchased by a developer who is proposing to construct additional buildings for life science. The environmental review process has been initiated. The owner of the last undeveloped site at Sierra Point has filed an application to construct a hotel/life science complex. An environmental review is under preparation.
The Guadalupe Quarry site located near the Crocker Business Park is currently part of an application for a General Plan Amendment, Pre-zoning, and a revised Design Permit to develop a 900,000 square-foot light fabrication facility with office and warehouse space. An EIR for the revised project is under preparation by the City and expected to be released in 2026. 15
In the November 2019 election, the City voters approved an increase in its business license tax collections with several initiatives including a tax on the cannabis industry based on gross receipts, changing methodology for the basis of tax on liquid storage tanks, and an increase on tax on recycling establishments. In November 2022, The City voters approved a Sales Use Tax of 1/2 cent and Hotel Business License tax which both went into effect in January 2023.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
The Annual Comprehensive Financial Report is intended to provide residents, taxpayers, investors, and creditors with a general overview of the City’s finances. Questions about this report should be directed to the Finance Department, at 50 Park Place, Brisbane, California 94005. 16
STATEMENT OF NET POSITION AND
STATEMENT OF ACTIVITIES
The Statement of Net Position reports the excess of the City’s total assets and deferred outflows of resources over the City’s total liabilities and deferred inflows of resources, including all the City’s capital assets and all its long-term debt. The Statement of Net Position summarizes the financial position of all of the City’s Governmental Activities in a single column, and the financial position of all of the City’s Business-Type Activities in a single column; these are followed by a total column which presents the financial position of the entire City.
The City’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds. The City’s Business-Type Activities include all its Enterprise Fund activities, which includes the Utility Fund (Water, Sewer, and GVMID) and Marina Enterprise Fund.
The Statement of Activities reports increases and decreases in the City’s net position. It presents the City’s expenses first, listed by program, and follows these with the expenses of its Business-Type Activities. Program revenues—that is, revenues which are generated directly by these programs—are then deducted from program expenses to arrive at the net expense of each governmental and businesstype program. The City’s general revenues are then listed in the Governmental Activities or BusinessType Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.
17
STATEMENT OF NET POSITION
JUNE 30, 2024
Governmental Business-Type
Activities Activities Total
ASSETS
Current assets:
Cash and investments available for operations (Note 3) $30,779,375 $4,628,834 $35,408,209 Restricted cash and investments (Note 3) 1,821,778 105 1,821,883 Accounts receivable 3,701,022 1,495,796 5,196,818
Taxes receivable 2,035,874 495 2,036,369
Internal balances (Note 4D) 371,320 (371,320)
Accrued interest 171,482 23,168 194,650
Prepaids 3,380 3,380
Noncurrent assets:
Loans receivable, net (Note 5) 3,201,692 2,295,996 5,497,688 Capital assets (Note 6):
Non-depreciable 20,177,486 876,202 21,053,688
Depreciable, net 55,836,546 30,779,879 86,616,425
Total Assets 118,099,955 39,729,155 157,829,110
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows (Note 9) 14,650,344 1,438,594 16,088,938 OPEB related deferred outflows (Note 10) 2,602,458 720,036 3,322,494 Total Deferred Outflows of Resources 17,252,802 2,158,630 19,411,432
LIABILITIES
Current liabilities:
Accounts payable 3,063,383 741,049 3,804,432
Accrued payroll 907,654 98,172 1,005,826
Interest payable 184,894 69,917 254,811
Deposits 6,023,282 204,318 6,227,600
Claims payable - due within one year (Note 13) 452,362 452,362 Compensated absences - due within one year (Note 1F) 260,106 19,626 279,732 Long-term debt - due within one year (Note 7) 1,057,210 883,000 1,940,210 Unearned revenue 527,901 716,346 1,244,247
Noncurrent liabilities:
Claims payable - due in more than one year (Note 13) 1,161,502 1,161,502 Compensated absences - due in more than one year (Note 1F) 780,317 58,880 839,197 Net pension liability (Note 9) 29,874,927 1,979,267 31,854,194 Net OPEB liability (Note 10) 5,116,579 1,120,172 6,236,751 Long-term debt - due in more than one year (Note 7) 23,283,182 5,795,000 29,078,182 Total Liabilities 72,693,299 11,685,747 84,379,046
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows (Note 9) 3,470,345 827,951 4,298,296 OPEB related deferred inflows (Note 10) 1,416,161 238,472 1,654,633 Total Deferred Inflows of Resources 4,886,506 1,066,423 5,952,929 NET POSITION (Note 8)
Net investment in capital assets 56,219,791 26,351,186 82,570,977 Restricted for:
Pension and employee benefits program 1,616,508 1,616,508 Capital projects 3,844,034 758,885 4,602,919
Debt service 910,441 910,441
Specific projects and programs 9,674,738 9,674,738
Total Restricted Net Position 16,045,721 758,885 16,804,606 Unrestricted (14,492,560) 2,025,544 (12,467,016)
Total Net Position $57,772,952 $29,135,615 $86,908,567
See accompanying notes to financial statements
CITY OF BRISBANE
18
CITY OF BRISBANE
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2024
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities:
General government $12,588,845 $9,666,640 $138,505 ($2,783,700) ($2,783,700) Public safety - police 7,441,704 67,277 3,421,557 (3,952,870) (3,952,870) Public safety - fire 5,228,071 540,545 (4,687,526) (4,687,526) Public works 7,887,204 858,817 2,236,225 (4,792,162) (4,792,162) Parks and recreation 3,329,512 924,232 (2,405,280) (2,405,280) Interest on long-term debt 894,269 (894,269) (894,269)
Total Governmental Activities 37,369,605 12,057,511 5,796,287 (19,515,807) (19,515,807) Business-type Activities:
Water 3,391,574 2,145,580 ($1,245,994) (1,245,994)
Sewer 2,463,568 1,460,977 (1,002,591) (1,002,591)
Guadalupe Valley Municipal
Improvement District 3,076,665 3,137,973 61,308 61,308
Marina 2,155,203 2,305,233 150,030 150,030
Total Business-type Activities 11,087,010 9,049,763 (2,037,247) (2,037,247) Total Primary Government $48,456,615 $21,107,274 $5,796,287 (19,515,807) (2,037,247) (21,553,054) General revenues:
Taxes:
Property taxes 6,623,557 33,673 6,657,230
Sales taxes 7,488,136 7,488,136
Transient occupancy tax 2,113,913 2,113,913
Other taxes 2,046,525 2,046,525
Miscellaneous revenues 130,079 130,079
Investment earnings 1,757,936 61,209 1,819,145
Developer contributions 20,000 20,000
Transfers (Note 4C) 34,090 (34,090)
Total General Revenues and Transfers 20,194,236 80,792 20,275,028 Change in Net Position 678,429 (1,956,455) (1,278,026)
Net Position-Beginning 57,094,523 31,092,070 88,186,593 Net Position-Ending $57,772,952 $29,135,615 $86,908,567 See accompanying notes to financial statements
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FUND FINANCIAL STATEMENTS
Major funds are defined generally as having significant activities or balances in the current year.
The funds described below were determined to be Major Funds by the City in fiscal year 2024.
Individual non-major funds may be found in the Supplemental Section.
General Fund
This fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except for those accounted for in another fund.
Low/Mod Income Housing Assets Special Revenue Fund
This fund accounts for the activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency. The activities are governed by California redevelopment law and must be used to provide housing for people with low and moderate incomes.
Capital Projects Fund
This fund was established to track all non-major construction and capital projects. Project budgets carryover year to year until completed.
21
Low/Mod
Income Housing Non-Major Total
Assets Special Capital Governmental Governmental
General Fund Revenue Fund Projects Fund Funds Funds
ASSETS
Cash and investments (Note 3) $9,806,142 $4,629,898 $13,776,988 $28,213,028 Restricted cash and investments (Note 3) 1,616,508 76,526 1,693,034 Accounts receivable, net 3,598,303 3,598,303
Interest receivable 78,813 23,009 64,160 165,982
Taxes receivable 1,973,465 62,409 2,035,874
Prepaids 3,380 3,380
Due from other funds (Note 4A) 12,358,953 12,358,953
Loans receivable (Note 5) 318,750 2,882,942 3,201,692
Advances to other funds (Note 4B) 3,136,320 3,136,320
Total Assets $32,890,634 $7,535,849 $13,980,083 $54,406,566
LIABILITIES
Accounts payable $2,291,628 $4,537 $564,118 $171,290 $3,031,573 Accrued payroll 649,985 12,129 662,114
Due to other funds (Note 4A) 11,050,787 113,996 11,164,783 Deposits payable 5,952,972 14,395 55,915 6,023,282
Interest payable 57,390 57,390
Advances from other funds (Note 4B) 2,765,000 2,765,000 Unearned revenue 527,901 527,901
Total Liabilities 8,894,585 4,537 14,451,690 881,231 24,232,043
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - loans receivable 2,882,942 2,882,942 Total Deferred Inflows of Resources 2,882,942 2,882,942 FUND BALANCES (Note 8)
Nonspendable 3,458,450 3,458,450
Restricted 1,616,508 4,648,370 7,815,686 14,080,564
Assigned 881,666 5,398,725 6,280,391
Unassigned 18,039,425 (14,451,690) (115,559) 3,472,176
Total Fund Balances (Deficit) 23,996,049 4,648,370 (14,451,690) 13,098,852 27,291,581 Total Liabilities, Deferred Inflows
of Resources and Fund Balances $32,890,634 $7,535,849 $13,980,083 $54,406,566
CITY OF BRISBANE
GOVERNMENTAL FUNDS
BALANCE SHEET
JUNE 30, 2024
See accompanying notes to financial statements
22
CITY OF BRISBANE
Reconciliation of the
GOVERNMENTAL FUNDS -- BALANCE SHEET
with the
STATEMENT OF NET POSITION
JUNE 30, 2024
Total fund balances reported on the Governmental Funds Balance Sheet $27,291,581 Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds above because of the following:
CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds 76,014,032
ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are not governmental funds. However, they are used by management to charge the costs of certain activities, such as insurance and central services and maintenance to individual governmental funds. The net current assets of the Internal Service Funds are therefore included in Governmental Activities in the following line items in the Statement of Net Position.
Cash and investments 2,695,091
Accounts and interest receivable 108,219
Accounts payable and accrued liabilities (31,810)
Accrued payroll (245,540)
Due to other funds (1,194,170)
Accrued claims payable (1,613,864)
ACCRUAL OF NON-CURRENT REVENUES AND EXPENSES
Revenues which are unavailable on the Fund Balance Sheets because they are not available currently are taken into revenue in the Statement of Activities. 2,882,942
LONG-TERM ASSETS AND LIABILITIES
The assets and liabilities below are not due and payable in the current period and therefore are not reported in the Funds:
Net pension liability, deferred outflows and deferred inflows (18,694,928) Long-term debt (24,340,392)
Net OPEB liability, deferred outflows and deferred inflows (3,930,282) Compensated absences (1,040,423)
Interest payable (127,504)
NET POSITION OF GOVERNMENTAL ACTIVITIES $57,772,952
See accompanying notes to financial statements
23
Low/Mod
Income Housing Non-Major Total
Assets Special Capital Governmental Governmental
General Fund Revenue Fund Projects Fund Funds Funds
REVENUES
Taxes and special assessments $17,106,143 $1,219,983 $18,326,126 Intergovernmental 5,613,027 $31,288 451,806 6,096,121
Licenses, permits and fees 6,990,435 2,836 6,993,271
Charges for services 4,098,159 4,098,159
Fines and forfeitures 55,740 55,740
Use of money and property 1,119,399 223,292 ($337,001) 837,225 1,842,915 Other revenues 436,690 133,505 570,195
Total Revenues 35,419,593 254,580 (337,001) 2,645,355 37,982,527
EXPENDITURES
Current:
General government 12,084,654 26,483 12,111,137
Public safety - police 6,977,687 6,977,687
Public safety - fire 5,046,127 5,046,127
Public works 3,100,333 81,970 1,015,295 4,197,598
Parks and recreation 3,129,206 3,129,206
Capital outlay 1,294,982 8,039,666 39,233 9,373,881
Debt service:
Principal 284,953 631,640 916,593
Interest and fiscal charges 166,883 640,170 807,053
Total Expenditures 32,084,825 81,970 8,039,666 2,352,821 42,559,282
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 3,334,768 172,610 (8,376,667) 292,534 (4,576,755)
OTHER FINANCING SOURCES (USES)
Issuance of debt and SBITA (Note 7) 6,798,703 6,798,703 Transfers in (Note 4C) 191,876 763,423 1,510,646 2,465,945 Transfers (out) (Note 4C) (1,853,003) (955,299) (2,808,302) Total Other Financing Sources (Uses) 5,137,576 763,423 555,347 6,456,346 NET CHANGES IN FUND BALANCES 8,472,344 172,610 (7,613,244) 847,881 1,879,591 BEGINNING FUND BALANCES (DEFICITS) 15,523,705 4,475,760 (6,838,446) 12,250,971 25,411,990 ENDING FUND BALANCES (DEFICITS) $23,996,049 $4,648,370 ($14,451,690) $13,098,852 $27,291,581 See accompanying notes to financial statements
CITY OF BRISBANE
GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
FOR THE YEAR ENDED JUNE 30, 2024
24
CITY OF BRISBANE
Reconciliation of the
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2024
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $1,879,591 Amounts reported for governmental activities in the Statement of Activities are different because of the following:
CAPITAL ASSETS TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.
The capitalized expenditures are therefore added back to fund balance 6,397,371 Depreciation expense is deducted from the fund balance (1,607,084)
LONG-TERM LIABILITIES
Repayment of bond principal is an expenditure in the governmental funds, but in the Statement of Net Position the repayment reduces long-term liabilities.
Proceeds from leases (6,798,703)
Repayments of debt principal and interest are added back to fund balance 916,593 Pension related expenses (866,610)
OPEB related expenses 539,570
ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):
Accrued interest on long-term debt (87,216)
Compensated absences 174,702
ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds.
The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with governmental funds is reported with governmental activities, because they service those activities.
Change in Net Position - All Internal Service Funds 130,215 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $678,429 See accompanying notes to financial statements
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PROPRIETARY FUNDS
Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges.
The concept of major funds established by GASB Statement 34 extends to Proprietary Funds. The City has identified the funds below as major enterprise funds in fiscal 2024.
GASB 34 does not provide for the disclosure of budget vs. actual comparison regarding proprietary funds that are major funds.
Utility Fund is comprised of the following services:
Water
Represents expenses incurred in the purchase and distribution of water to City residents and businesses; water users support this activity through payment of water billings which are rendered based on read meters.
Sewer
Represents expenses incurred in the collection and pumping of sewage waste to the City of San Francisco Sewer Treatment Plant where it is treated and discharged to the bay; sewer users support this activity through payment of sewer service billings.
Guadalupe Valley Municipal Improvement District
Represents expenses related to providing water, sewer, and other municipal services to businesses and residents located within the district boundaries. Revenues to support this activity are derived from property taxes, water, and sewer billings and special assessments.
Marina Enterprise Fund
This fund accounts for expenses incurred in the operation and maintenance of a boat harbor and marina; berth rentals provide the source of revenue to support this activity.
Internal Service Funds
These funds are used to account for interdepartmental operations where it is the stated intent that costs of providing services to the departments of the City on a continuing basis be financed or recovered primarily by charges to the user departments.
27
CITY OF BRISBANE
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2024
Business-type Activities-Enterprise Funds
Governmental
ActivitiesInternal Service
Utility Marina Totals Funds
ASSETS
Current Assets:
Cash and investments (Note 3) $2,108,091 $2,520,743 $4,628,834 $2,566,347 Restricted cash and investments (Note 3) 105 105 128,744 Accounts receivable, net 1,407,727 88,069 1,495,796 102,719 Taxes receivable 495 495
Interest receivable 10,563 12,605 23,168 5,500
Total Current Assets 3,526,981 2,621,417 6,148,398 2,803,310 Noncurrent Assets:
Loans receivable (Note 5) 2,295,996 2,295,996
Capital assets (Note 6)
Non-depreciable 876,202 876,202
Depreciable, net 25,384,965 5,394,914 30,779,879
Total Noncurrent Assets 26,261,167 7,690,910 33,952,077 Total Assets 29,788,148 10,312,327 40,100,475 2,803,310
DEFERRED OUTFLOWS
Deferred outflows related to pensions (Note 9) 1,007,060 431,534 1,438,594 Deferred outflows related to OPEB (Note 10) 163,726 556,310 720,036 Total Deferred Outflows 1,170,786 987,844 2,158,630
LIABILITIES
Current Liabilities:
Accounts payable 709,571 31,478 741,049 31,810
Due to other funds (Note 4A) 1,194,170
Accrued payroll 71,179 26,993 98,172 245,540
Interest payable 62,777 7,140 69,917
Accrued claims payable (Note 13) 452,362
Compensated absences due within one year (Note 1F) 13,249 6,377 19,626 Bonds payable due within one year (Note 7) 440,000 443,000 883,000 Deposits 20,689 183,629 204,318
Unearned revenue 716,346 716,346
Total Current Liabilities 2,033,811 698,617 2,732,428 1,923,882 Noncurrent Liabilities:
Compensated absences due in more than one year (Note 1F) 39,748 19,132 58,880 Accrued claims payable (Note 13) 1,161,502
Advances from other funds (Note 4B) 371,320 371,320
Bonds payable due in more than one year (Note 7) 4,865,000 930,000 5,795,000 Net pension liability (Note 9) 1,385,487 593,780 1,979,267 Net OPEB liability (Note 10) 254,703 865,469 1,120,172
Total Noncurrent Liabilities 6,544,938 2,779,701 9,324,639 1,161,502 Total Liabilities 8,578,749 3,478,318 12,057,067 3,085,384
DEFERRED INFLOWS
Deferred inflows related to pensions (Note 9) 579,670 248,281 827,951 Deferred inflows related to OPEB (Note 10) 54,224 184,248 238,472 Total Deferred Inflows 633,894 432,529 1,066,423
NET POSITION (Note 8)
Net investment in capital assets 20,956,272 5,394,914 26,351,186 Restricted for capital projects 758,885 758,885
Unrestricted 31,134 1,994,410 2,025,544 (282,074)
Total Net Position $21,746,291 $7,389,324 $29,135,615 ($282,074) See accompanying notes to financial statements
28
CITY OF BRISBANE
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2024
Business-type Activities-Enterprise Funds
Governmental
ActivitiesInternal Service
Utility Marina Totals Funds
OPERATING REVENUES
Charges for sales and services $6,744,530 $2,259,702 $9,004,232 $2,497,927 Other revenues 45,531 45,531 23,982
Total Operating Revenues 6,744,530 2,305,233 9,049,763 2,521,909
OPERATING EXPENSES
Cost of sales and services 4,068,300 734,940 4,803,240 33,583 General and administrative 4,205,463 1,316,444 5,521,907 2,122,435 Depreciation (Note 6) 657,544 103,819 761,363
Other expenses 500 500 643,540
Total Operating Expenses 8,931,807 2,155,203 11,087,010 2,799,558 Operating Income (Loss) (2,187,277) 150,030 (2,037,247) (277,649)
NONOPERATING REVENUES (EXPENSES)
Taxes and assessments 33,673 33,673
Investment income 172,002 136,010 308,012 31,417
Interest expense (196,108) (50,695) (246,803)
Total Nonoperating Revenues (Expenses) 9,567 85,315 94,882 31,417 Income (Loss) Before Contributions and Transfers (2,177,710) 235,345 (1,942,365) (246,232) Developer contributions 20,000 20,000
Transfers in (Note 4C) 42,357 42,357 376,447
Transfers out (Note 4C) (60,289) (16,158) (76,447)
Net Contributions and Transfers 2,068 (16,158) (14,090) 376,447 Change in net position (2,175,642) 219,187 (1,956,455) 130,215 BEGINNING NET POSITION 23,921,933 7,170,137 31,092,070 (412,289) ENDING NET POSITION $21,746,291 $7,389,324 $29,135,615 ($282,074) See accompanying notes to financial statements
29
CITY OF BRISBANE
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2024
Business-type Activities-Enterprise Funds
Governmental
ActivitiesInternal Service
Utility Marina Totals Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $6,503,862 $2,303,058 $8,806,920 $2,542,184 Cash payments to suppliers (7,882,180) (1,991,384) (9,873,564) (2,875,543) Cash Flows from Operating Activities (1,378,318) 311,674 (1,066,644) (333,359)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Taxes and assessments 33,827 33,827
Due to other funds 668,639
Transfers in 42,357 42,357
Transfers (out) (60,289) (16,158) (76,447) (81)
Cash Flows from Noncapital Financing Activities 15,895 (16,158) (263) 668,558
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal payment of debt (415,000) (430,000) (845,000) Interest paid (203,889) (55,885) (259,774)
Developer contributions received 20,000 20,000
Cash Flows from Capital and
Related Financing Activities (598,889) (485,885) (1,084,774)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest paid (63,633)
Investment income receipts 179,746 137,898 317,644 95,605 Cash Flows from Investing Activities 179,746 137,898 317,644 31,972 Net Cash Flows (1,781,566) (52,471) (1,834,037) 367,171 Cash and investments at beginning of period 3,889,762 2,573,214 6,462,976 2,327,920 Cash and investments at end of period $2,108,196 $2,520,743 $4,628,939 $2,695,091 Reconciliation of Operating Income (Loss) to Cash Flows from Operating Activities:
Operating income (Loss) ($2,187,277) $150,030 ($2,037,247) ($277,649) Adjustments to reconcile operating income (Loss)
to cash flows from operating activities:
Depreciation 657,544 103,819 761,363
Change in assets, deferred outflows, liabilities
and deferred inflows:
Accounts receivable (240,668) (2,175) (242,843) (1,750) Accounts payable and accrued liabilities (82,407) (8,187) (90,594) (6,389) Accrued payroll 25,925 10,141 36,066 15,526
Accrued claims payable (63,097)
Compensated absences (12,744) 1,140 (11,604)
Deposits 1,390 (9,020) (7,630)
Net pension liability, deferred inflows and deferred outflows 504,102 216,044 720,146 Net OPEB liability, deferred inflows and deferred outflows (44,183) (150,118) (194,301) Cash Flows from Operating Activities ($1,378,318) $311,674 ($1,066,644) ($333,359) See accompanying notes to financial statements
30
FIDUCIARY FUNDS
Fiduciary funds are presented separately from the Government-wide and Fund financial statements. The City had the following types of fiduciary funds in fiscal year 2024:
Private Purpose Trust Fund
This fund is used to account for resources legally held in trust for special purposes.
Custodial Funds
These funds are custodial in nature and do not involve measurement of results of operations. They are used to account for assets held in a custodial capacity for others and therefore cannot be used to support the City’s program.
31
CITY OF BRISBANE
FIDUCIARY FUNDS
STATEMENT OF NET POSITION
JUNE 30, 2024
Successor
Agency
Private-Purpose
Trust Custodial
Fund Funds
ASSETS
Cash and investments (Note 3) $1 $1,168,619
Restricted cash and investments (Note 3) 3,569,789
Accounts receivable, net 4,131 92,661
Interest receivable 443
Total Assets 3,573,921 1,261,723
DEFERRED OUTFLOW OF RESOURCES
Deferred charges on refunding (Note 16C) 670,308
Total Deferred Outflow of Resources 670,308
LIABILITIES
Accounts payable 1,891 2,168,009
Deposits payable 4,450,721
Interest payable 60,979
Loans payable to City (Note 16B) 2,295,996
Long- term debt (Note 16B):
Due within one year 1,645,000
Due in more than one year 1,890,000
Total Liabilities 5,893,866 6,618,730
NET POSITION (DEFICIT)
Restricted for:
Held in trust for private-purpose (1,649,639)
Organizations and other governments (5,357,007)
Total Net Position (Deficit) ($1,649,639) ($5,357,007)
See accompanying notes to financial statements
32
Successor
Agency
Private-Purpose
Trust Custodial
Fund Funds
ADDITIONS
Investment income $1,099 $122,593
Other revenue 2,324,899 104,900
Total additions 2,325,998 227,493
DEDUCTIONS
Public works 13,288
Interest and fiscal charges 436,138
Professional services 2,075,033
Total deductions 449,426 2,075,033
CHANGES IN NET POSITION 1,876,572 (1,847,540)
(3,526,211) (3,509,467)
ENDING NET POSITION (DEFICIT) ($1,649,639) ($5,357,007) See accompanying notes to financial statements
BEGINNING NET POSITION (DEFICIT)
CITY OF BRISBANE
STATEMENT OF CHANGES IN NET POSITION
FIDUCIARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
33
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CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City was incorporated on November 27, 1961, under the General Laws of the State of California and enjoys all the rights and privileges pertaining to such “General Law” cities. The City uses the City Council/Manager form of government. The financial reporting entity consists of (a) the primary government, the City, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.
The financial statements and accounting policies of the City conform with generally accepted accounting principles applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. Significant accounting policies are summarized below:
A. Reporting Entity
The accompanying basic financial statements present the financial activity of the City, which is the primary government presented, along with the financial activities of its component units, which are entities for which the City is financially accountable. Although they are separate legal entities, blended component units are in substance part of the City’s operations and are reported as an integral part of the City’s financial statements. The term City, as used in this report, refers to the City and its component units as a consolidated entity. The City’s component units, which are described below, are all blended. • Brisbane Public Financing Authority (Authority)
• Guadalupe Valley Municipal Improvement District (District) • Brisbane – Guadalupe Valley Municipal Improvement District Finance Authority (B/GVM District)
Brisbane Public Financing Authority was formed on April 8, 1991, by and between the City and the former Redevelopment Agency (Agency) of the City. The Authority was created for the purpose of providing financing of public capital improvements for the City and the Former Agency. The Authority has the power to issue bonds to pay the cost of any public capital improvement. The Authority has no independent staff and consequently is dependent upon the City’s officers and employees. The Governing Board of the Authority is comprised of the members of the City Council of the City and the members of the Board of the Former Agency.
Guadalupe Valley Municipal Improvement District was formed as an enterprise activity in May 1990. The purpose of the District is to provide capital and infrastructure improvements to residents of the area. The members of the City Council act as the governing body of the District.
Brisbane – Guadalupe Valley Municipal Improvement District Finance Authority was formed as a financing activity in September 2014. The purpose of the B/GVM District is to provide a financing mechanism for residents of the area. The members of the City Council act as the governing body of the B/GVM District.
35
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) B. Basis of Presentation
The City’s Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard-setting body for establishing accounting and financial reporting standards followed by governmental entities in the U.S.A.
These Statements require that the financial statements described below be presented.
Government-Wide Financial Statements: The Statement of Net Position and the Statement of Activities display information about the primary government (the City) and its component units. These statements include the financial activities of the overall City government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. Business-type activities are financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function.
Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the City's funds, including blended component units and fiduciary funds. Separate statements for each fund category: governmental, proprietary, and fiduciary are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from non-exchange transactions or ancillary activities.
36
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) C. Major Funds
The City’s major governmental and business-type funds are identified and presented separately in the fund financial statements. All other funds, called non-major funds, are combined and reported in a single column, regardless of their fund types.
Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.
The City reported the following major governmental funds in the accompanying financial statements:
General Fund – The General Fund is established to account for the revenues and expenditures to carry out basic governmental activities of the City such as general government, public safety, parks and recreation and public works. This fund accounts for all financial transactions not accounted for in the other funds.
Low/Mod Income Housing Assets Special Revenue Fund – This fund accounts for the activities related to the housing assets assumed by the City as Housing Successor to the former Redevelopment Agency. The activities are governed by California redevelopment law and must be used to provide housing for people with low and moderate incomes.
Capital Projects Fund – This fund was established to track all non-major construction and capital projects. Project budgets carryover year to year until completed.
The City reported all of its enterprise funds as major funds:
Utility Enterprise Fund – This fund accounts for revenues and expenses incurred for the water, sewer and Guadalupe Valley Municipal Improvement District.
Marina Enterprise Fund – This fund accounts for expenses incurred in the operation and maintenance of a boat harbor and marina; berth rentals provide the source of revenue to support this activity.
Internal Service Funds account for activities related to dental self-insurance, fringe benefits, flexible benefits, workers’ compensation, general liability, vehicle replacement, facilities maintenance and other post-employment benefits (OPEB).
Fiduciary Funds financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City's fiduciary funds represent custodial funds and private-purpose trust funds and are accounted for using the “economic resources” measurement focus. The private-purpose trust funds are used to account for resources legally held in trust for special purposes. The Custodial funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. Both types of the funds are accounted for using accrual basis of accounting.
37
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) D. Basis of Accounting
The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources.
Those revenues susceptible to accrual are property, sales, transient occupancy and franchise taxes, special assessments, licenses for services and interest revenue. Fines, permits, and charges for services are not susceptible to accrual because they are not measurable until received in cash.
Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations.
On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
The City may fund programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be available to finance program expenditures. The City’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.
Certain indirect costs are included in program expenses reported for individual functions and activities.
E. Interest Payable
In the Government-Wide Financial Statements, interest payable of long-term debt is recognized as the liability is incurred.
In the fund financial statements, proprietary fund types recognize the interest payable when the liability is incurred.
38
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) F. Compensated Absences
The City’s compensated absences include regular vacation, compensatory time-off, and personal leave. Employees earn varying amounts of vacation depending upon continuous tenure with the City. Use of vacation may be deferred to the following year, but the total amount of vacation may not exceed two years annual accrual without City Manager approval.
Vested compensated absence amounts are payable upon the employee’s separation from employment. Compensated absences for governmental activities are recorded as current and non-current in the Government-Wide Financial Statements. For proprietary funds, current and non-current liabilities for compensated absences are recorded as expenses in the GovernmentWide Financial Statements and the Fund Financial Statements.
The change in compensated absences was as follows at June 30, 2024:
Governmental
Activities
Business-Type
Activities Total
Beginning Balance $1,215,125 $90,110 $1,305,235
Additions 531,987 71,681 603,668
Payments (706,689) (83,285) (789,974)
Ending Balance $1,040,423 $78,506 $1,118,929
Current Portion $260,106 $19,626 $279,732
Non-current Portion $780,317 $58,880 $839,197
G. Property Taxes
Under California law, secured property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool and are then allocated to the cities based on complex formulas.
Lien Date January 1
Levy Date July 1
Due Date November 1 and February 1
Collection Date December 10 and April 10
Property taxes levied are recorded as revenue when received, in the fiscal year of levy, because of the adoption of the “alternate method of property tax distribution,” known as the Teeter Plan, by the City and the County of San Mateo. The Teeter Plan authorizes the Auditor/Controller of the County of San Mateo to allocate 100% of the secured property taxes billed, but not yet paid.
39
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) H. Use of Estimates
The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.
I. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of net position or balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
J. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and Public Agency Retirement Services (PARS) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS and PARS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
K. Other Post-Employment Benefits Other than Pensions
For purposes of measuring the net OPEB liability, deferred outflows/inflows of resources related to OPEB, and OPEB expense and information about the fiduciary net position of the City Retiree Benefits Plan (the Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the Plan recognizes benefits payments when due and payable in accordance with benefit terms. Investments are reported at fair value.
L. New Fund
During fiscal year 2023-24, the City opened the 2023 Brisbane-Guadalupe Valley Municipal Improvement District Public Financing Authority Debt Service Fund to account for the debt service for the 2023 Lease Revenue Bonds.
40
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) M. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.
N. New Governmental Accounting Standards Board Statement Implementation In June 2022, GASB issued Statement No. 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 is effective for reporting periods beginning after June 15, 2023, or the fiscal year 2023-2024. The implementation of this Statement did not have a material impact on the financial statements, but required a disclosure in the financial statements for a change in major fund and non-major fund reporting during fiscal year 2023-2024.
41
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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.
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, 2024, 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. 42
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 2 – BUDGETS AND BUDGETARY ACCOUNTING (Continued)
B. Encumbrances
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders and contracts) outstanding at year-end are recorded. The commitments will be reappropriated and honored in the subsequent year.
C. Expenditures in Excess of Appropriations
The following funds had expenditures in excess of appropriations:
Fund Department/Program
Amount in
Excess of
Budget
General Fund
General Government $2,259,096
Public Safety - Police 628,393
Public Safety - Fire 131,792
Public Works 265,505
Capital Outlay 1,284,282
Debt Service: Principal 284,953
Debt Service: Interest and Fiscal Charges 166,883
Non-major Special Revenue Funds:
NPDES Public Works 112,133
Public Arts Fund General Government 26,483
Non-major Debt Service Funds:
B/GVMID Public Financing Authority
Debt Service: Interest and Fiscal Charges 285
2017 B/GVMID Public Financing
Authority Debt Service: Interest and Fiscal Charges 9,503 2022 B/GVMID Public Financing
Authority Debt Service: Principal 71,000
Debt Service: Interest and Fiscal Charges 142,431
2018 Library Construction Loan
Debt Service: Principal 4,307
Debt Service: Interest and Fiscal Charges 9,092
The funds had sufficient fund balances or revenues to finance these expenditures. 43
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024, are classified in the financial statements as shown below, based on whether or not their use is restricted under the terms of City debt instruments or agency agreements.
Cash and investments available for operations $35,408,209 Restricted cash and investments 1,821,883
Total City Cash and Investments 37,230,092
Cash and investments in Fiduciary Funds 1,168,620
Restricted cash and investments in Fiduciary Funds 3,569,789 Total Fiduciary Cash and Investments 4,738,409
Total Cash and Investments $41,968,501
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.
44
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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.
45
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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 $1,983,790 $1,983,790
Federal Home Loan Banks $4,942,370 9,832,220 $1,995,510 16,770,100 Time Certificates of Deposit:
Wells Fargo Bank 248,981 248,981
American Express National Bank 248,942 248,942
Money Market Mutual Funds 11,807,140 11,807,140
Local Agency Investment Fund 1,574,439 1,574,439
Total Investments $18,821,872 $11,816,010 $1,995,510 32,633,392 Cash in banks and on hand 9,335,109
Total Cash and Investments $41,968,501
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, 2024, for each investment type:
Investment Type Aaa/AAAm Not Rated Total
Securities of U.S. Government Treasury
and Agencies
Federal Farm Credit Banks $1,983,790 $1,983,790
Federal Home Loan Banks 16,770,100 16,770,100
Money Market Mutual Funds 11,807,140 11,807,140
Local Agency Investment Fund $1,574,439 1,574,439
Time Certificates of Deposit 497,923 497,923
Total Investments $30,561,030 $2,072,362 32,633,392
Cash in banks and on hand 9,335,109
Total Cash and Investments $41,968,501
46
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024, these investments matured in an average of 217 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.
47
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024:
Level 2 Total
Investments by Fair Value Level:
Securities of U.S. Government Treasury
and Agencies $18,753,890 $18,753,890
Time Certificates of Deposit 497,923 497,923
Total $19,251,813 19,251,813
Investments Measured at Amortized Cost:
Money Market Mutual Funds 5,998,444
Held by Trustee:
Money Market Mutual Funds 5,808,696
Investments Exempt from Fair Value Hierarchy:
Local Agency Investment Fund 1,574,439
Total Investments $32,633,392
Securities of the U.S. Government Agency’s $18.7 million and the Time Certificates of Deposits totaling $.5 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, 2024, 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 $11,050,787 $113,996 $1,194,170 $12,358,953 Total $11,050,787 $113,996 $1,194,170 $12,358,953
Due to Fund:
48
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 4 – INTERFUND TRANSACTIONS (Continued)
B. Advances To/From Other Funds
At June 30, 2024, 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 fiscal year 2018, the City approved 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, 2024 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, 2024 was $371,320.
C. Transfers In/Out
The City had the following transfers in/out for the year ended June 30, 2024:
Transfers In
Capital Non-Major Utility Internal
General Projects Governmental Enterprise Service
Fund Fund Funds Fund Funds Total
Transfers Out
General Fund $1,510,646 $42,357 $300,000 $1,853,003
Non-Major Governmental Funds $191,876 $763,423 955,299
Enterprise Funds
Utility 60,289 60,289
Marina 16,158 16,158
Total $191,876 $763,423 $1,510,646 $42,357 $376,447 $2,884,749 Transfers out from the General Fund included a transfer to the NPDES Special Revenue Fund, amounts to Debt Service Funds to fund debt service payments, Utility Low Income Rate Assistance Offset to the Utility Enterprise Fund, and amounts for the Vehicle Replacement Internal Service Fund.
The Grants Special Revenue Fund transferred SLESF funds to cover a portion of Police salary.
The Capital Projects Fund received funds from Measure A, Measure W, Gas Tax, and SB1 Special Revenue funds to cover various capital project expenditures.
The Utility and Marina Enterprise Funds transferred funds to the Vehicle Replacement Internal Service Fund to cover its costs of City vehicles. 49
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024, the City had the following loans receivable:
Balance Balance
June 30, 2023 Deletions June 30, 2024
Governmental Funds:
Loan to Administrative Services Director $318,750 $318,750 Loan to City Manager 125,000 $125,000
Bridge Housing Corporation Loan 2,336,086 2,336,086
First Time Home Buyers 546,856 546,856
Total Governmental Funds 3,326,692 125,000 3,201,692
Proprietary Funds:
Loan to Successor Agency 2,295,996 2,295,996
Total Proprietary Funds 2,295,996 2,295,996
Total $5,622,688 $125,000 $5,497,688
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, or 60 months after the effective date of termination of employment with the City. 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. During fiscal year ended June 30, 2024, the City Manager retired and the loan was fully repaid. 50
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 5 – LOANS RECEIVABLE (Continued)
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, 2024, the balance of the loan was $2,336,086.
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 a 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.
51
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 5 – LOANS RECEIVABLE (Continued)
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, 2024, the Successor Agency recorded a loan payable to the City in the amount of $2,295,996 and the City Marina Enterprise Fund recorded a loan receivable in the amount of $2,295,996.
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
52
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 6 – CAPITAL ASSETS (Continued)
Changes in capital assets during the year ended June 30, 2024 comprise of the following:
Balance at Balance at
June 30, 2023 Additions Adjustments Transfers June 30, 2024 Governmental activities
Non-depreciable capital assets:
Land $16,716,300 $16,716,300
Artwork 5,500 5,500
Construction in progress 975,141 $5,364,329 ($2,695,568) ($188,216) 3,455,686 Total non-depreciable capital assets: 17,696,941 5,364,329 (2,695,568) (188,216) 20,177,486 Capital assets being depreciated:
Land Improvements 8,224,418 2,695,568 10,919,986
Building and Structures 26,189,025 26,189,025
Machinery and Equipment 5,103,612 105,945 188,216 5,397,773 Right Of Use - Leased Property 8,720,717 (19,184) 8,701,533 Right of Use - SBITAs 1,413,703 1,413,703
Infrastructure 31,758,104 31,758,104
Total capital assets, depreciable 79,995,876 4,215,216 (19,184) 188,216 84,380,124 Less accumulated depreciation:
Land Improvements (2,846,984) (271,878) (3,118,862)
Building and Structures (6,974,934) (456,233) (7,431,167) Machinery and Equipment (3,870,991) (327,020) (4,198,011) Right Of Use - Leased Property (697,658) (482,607) 15,185 (1,165,080) Right of Use - SBITAs -
Infrastructure (12,078,505) (551,953) (12,630,458)
Total accumulated depreciation (26,469,072) (2,089,691) 15,185 (28,543,578) Depreciable capital assets 53,526,804 2,125,525 (3,999) 188,216 55,836,546 Governmental activity
capital assets, net $71,223,745 $7,489,854 ($2,699,567) $76,014,032
53
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 6 – CAPITAL ASSETS (Continued)
Balance at Balance at
June 30, 2023 Additions Adjustments Transfers June 30, 2024 Business-type activities
Capital assets not being depreciated:
Land $647,815 $647,815
Construction in Progress 228,387 228,387
Total non-depreciable capital assets: 876,202 876,202
Capital assets, being depreciated:
Land Improvements 13,691,726 13,691,726
Building and Structures 12,022,220 ($2,495,385) 9,526,835 Machinery and Equipment 883,161 883,161
Infrastructure 32,245,204 2,495,385 34,740,589
Total capital assets being depreciated 58,842,311 58,842,311 Less accumulated depreciation for:
Land Improvements (6,781,618) ($75,830) (6,857,448)
Building and Structures (3,352,433) (162,427) (3,514,860) Machinery and Equipment (648,697) (26,704) (675,401)
Infrastructure (16,518,321) (496,402) (17,014,723)
Total accumulated depreciation (27,301,069) (761,363) (28,062,432) Depreciable capital assets 31,541,242 (761,363) 30,779,879 Business-type activity capital assets, net $32,417,444 ($761,363) $31,656,081 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. 54
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 6 – CAPITAL ASSETS (Continued)
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 $1,010,562
Public Safety 270,383
Public Works 608,440
Parks and Recreation 200,306
Total Governmental Activities $2,089,691
Business-Type Activities
Utility:
Water $238,707
Sewer 82,565
Guadalupe Valley Municipal Improvement District 336,272 Marina 103,819
Total Business-Type Activities $761,363
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, 2024:
Balance at Balance at Current Non-Current
June 30, 2023 Additions Retirements June 30, 2024 Portion Portion Governmental Activities
2014 Lease Revenue Refunding Bonds $3,665,000 ($255,000) $3,410,000 $265,000 $3,145,000 2017 Lease Revenue Refunding Bonds (Direct Placement) 860,000 (138,000) 722,000 138,000 584,000 2018 San Mateo County Library Loan (Direct Borrowing) 1,133,334 (117,640) 1,015,694 109,028 906,666 2022 Bank of West Loan (Direct Borrowing) 4,355,000 (71,000) 4,284,000 76,000 4,208,000 2023 Lease Revenue Bonds $5,385,000 (50,000) 5,335,000 165,000 5,170,000 Energy Conservation Loan (Direct Borrowing) 34,981 (13,888) 21,093 14,028 7,065 Subscription Liability (See Note 12) 1,413,703 (99,981) 1,313,722 107,880 1,205,842 Leases payable (see Note 11) 8,409,967 (171,084) 8,238,883 182,274 8,056,609 Total Governmental Long-Term Debt $18,458,282 $6,798,703 ($916,593) $24,340,392 $1,057,210 $23,283,182 Balance Balance at Current Non-Current
June 30, 2023 Additions Retirements June 30, 2024 Portion Portion Business-type Activities
2015 Utility Revenue Bonds $5,720,000 ($415,000) $5,305,000 $440,000 $4,865,000 2015 Installment Sale Agreement (Direct Placement) 1,803,000 (430,000) 1,373,000 443,000 930,000 Total Business-Type Long-Term Debt $7,523,000 ($845,000) $6,678,000 $883,000 $5,795,000 55
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 7 – LONG-TERM DEBT (Continued)
A. 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
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 295,000 80,450 375,450
2030-2034 1,645,000 244,538 1,889,538
2035 365,000 13,231 378,231
Total $3,410,000 $746,489 $4,156,489
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. 56
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 7 – LONG-TERM DEBT (Continued)
B. 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
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
2029 149,000 3,292 152,292
Total $722,000 $48,398 $770,398
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.
57
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 7 – LONG-TERM DEBT (Continued)
C. 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
2025 $109,028 $11,992 $121,020
2026 113,334 10,654 123,988
2027 113,334 9,295 122,629
2028 113,334 7,948 121,282
2029 113,334 6,562 119,896
2030-2033 453,330 12,698 466,028
Total $1,015,694 $59,149 $1,074,843
D. 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.
58
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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
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 88,000 128,219 216,219
2030-2034 1,303,000 538,203 1,841,203
2035-2039 1,531,000 312,131 1,843,131
2040-2042 1,045,000 57,341 1,102,341
Total $4,284,000 $1,576,656 $5,860,656
E. 2023 Lease Revenue Bonds
On July 1, 2023, the Brisbane/Guadalupe Valley Municipal Improvement District Financing Authority issued $5,385,000 principal amount Lease Revenue Bonds, Series 2023. The Bonds were issued to (1) finance the costs of tenant improvements to, and related equipment and furnishing for, a building at 25 Park Place leased by the City and used for municipal purposes, and (2) pay the costs of issuance of the Bonds.
Repayments made by the City are payable from legally available funds through Lease Payments under a Lease Agreement with the Authority. The City has covenanted to include such Lease Payments in its annual General Fund budget and make the necessary appropriations; however, these payments are subject to abatement during periods when the leased property cannot be used due to damage, destruction, or eminent domain. The Bonds are secured solely by Lease Payments and certain pledged funds under the Indenture.
The bonds mature annually through May 1, 2043, in amounts ranging from $165,000 to $425,000. The interest on the bonds is payable semiannually on May 1 and November 1, with the rate at 5%. The bonds are subject to optional and mandatory redemption prior to maturity. 59
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 7 – LONG-TERM DEBT (Continued)
The annual debt service requirements on the bonds are as follows:
Year ending
June 30: Principal Interest Total
2025 $165,000 $249,600 $414,600
2026 170,000 241,350 411,350
2027 180,000 232,850 412,850
2028 190,000 223,850 413,850
2029 200,000 214,350 414,350
2030-2034 1,180,000 912,500 2,092,500
2035-2039 1,650,000 569,250 2,219,250
2040-2043 1,600,000 168,506 1,768,506
Total $5,335,000 $2,812,256 $8,147,256
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
2025 $14,028 $176 $14,204
2026 7,065 35 7,100
Total $21,093 $211 $21,304
G. Subscription Based Information Technology Arrangements The City is party to one SBITA that meets the criteria for recording under GASB 96. See Note 12 for details.
H. Leases
The City is party to one lease, as the lessee, for the party at 25 Park Place. See Note 11 for details.
60
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 7 – LONG-TERM DEBT (Continued)
I. 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 $618,025 and Utility Enterprise Fund net revenue was ($1,100,656). The City increased the sewer and water rates to increase the revenue in FY2024.
The annual payment requirements on the loan are as follows:
Year ending
June 30: Principal Interest Total
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 510,000 110,513 620,513
2030-2034 2,260,000 298,869 2,558,869
2035-2036 670,000 25,106 695,106
Total $5,305,000 $1,042,263 $6,347,263
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. 61
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 7 – LONG-TERM DEBT (Continued)
J. 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 $482,931 and Marina Enterprise Fund net operating income was $357,668.
The annual payment requirements on the installment sale agreement are as follows:
Year ending
June 30: Principal Interest Total
2025 $443,000 $39,406 $482,406
2026 458,000 25,475 483,475
2027 472,000 11,076 483,076
Total $1,373,000 $75,957 $1,448,957
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.
62
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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.
63
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024, the cash and investment balance in the trust was $1,616,508. 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, 2024, 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 $318,750 $318,750
Prepaids 3,380 3,380
Advances to other funds 3,136,320 3,136,320
Total Nonspendable Fund Balances 3,458,450 3,458,450
Restricted for:
PARS pension trust 1,616,508 1,616,508
Low and moderate income
housing projects $4,648,370 4,648,370
Debt service $1,024,435 1,024,435
ARPA funded public services 1,116,353 1,116,353
Transportation and street
improvements 1,004,246 1,004,246
Grant activities 70,456 70,456
Special revenue activities 4,600,196 4,600,196
Total Restricted Fund Balances 1,616,508 4,648,370 7,815,686 14,080,564 Assigned to:
Capital projects 5,398,725 5,398,725
Encumbrances 620,798 620,798
Fire sinking fund 260,868 260,868
Total Assigned Fund Balances 881,666 5,398,725 6,280,391 Unassigned 18,039,425 ($14,451,690) (115,559) 3,472,176 Total Fund Balances $23,996,049 $4,648,370 ($14,451,690) $13,098,852 $27,291,581
64
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 8 – NET POSITION AND FUND BALANCES (Continued)
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 2024, the amount, at minimum, is $3.5 million.
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 2024, 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 2024, the minimum amount is approximately $2.0 million.
For fiscal year 2024, 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, 2024, the actual total amount of fund balance of the General Fund was $23.9 million, with an unassigned fund balance of $18.0 million.
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, 2024, the Utility Enterprise Fund’s required work capital balance is $1,786,361.
The fund’s actual unrestricted net position at June 30, 2024 was $31,134. At June 30, 2024, the Marina Enterprise Fund’s required work capital balance is $431,041. The fund’s actual unrestricted net position at June 30, 2024 was $1.99 million.
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.
65
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 8 – NET POSITION AND FUND BALANCES (Continued)
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.
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 $14,451,690
Non-Major Governmental Funds:
NPDES Special Revenue Fund 1,565
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 3,099
2022 Brisbane- Guadalupe Valley Municipal Improvement District Public Financing Authority Debt Service Fund 102,097
Internal Service Funds:
Dental Self-Insurance 89,823
Flexible Benefits 1,671
General Liability 1,098,691
Workers' Compensation 1,434,259
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.
66
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – PENSION PLANS (Continued)
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.
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, 2024, are summarized as follows:
Miscellaneous
Hire date Prior to July 1, 2008
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2.7% @ 55 2.0% @ 60 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50-67+ 50 - 67+ 52 - 67+
Monthly benefits, as a % of eligible compensation 2.0% - 2.7% 1.092%-2.418% 1.0%-2.5% Required employee contribution rates 8.0% 7.0% 7.75%
Required employer contribution rates 15.95% 10.66% 7.68% Hire date
Prior to
January 1, 2013
(Police & Fire)
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% 13.75% 13.75% Required employer contribution rates 24.15% 13.54% 13.54% Safety
67
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – PENSION PLANS (Continued)
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability (UAL). The dollar amounts are billed on a monthly basis or can be paid in a lump sum at a reduced amount. The City elected to make the monthly contributions and the required contribution for the unfunded liability and side fund was $2,023,894 in fiscal year 2024.
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.
For the year ended June 30, 2024, the City’s contributions to the Plan were as follows:
Miscellaneous
Contributions - employer $1,841,260
Safety
Contributions - employer $1,894,540
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Plan and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the 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. 68
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – PENSION PLANS (Continued)
As of June 30, 2024, the City reported a net pension liability for its proportionate share of the net pension liability of the Plan as follows:
Deferred outflows Net Pension Deferred inflows
of resources Liability (Asset) of resources
Miscellaneous $8,654,635 $15,619,481 $964,041
Safety 7,401,944 16,220,601 3,334,255
PARS 32,359 14,112
Total $16,088,938 $31,854,194 $4,298,296
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, 2023, 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, 2022 rolled forward to June 30, 2023 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, 2022 and 2023 was as follows:
Miscellaneous
Proportion - June 30, 2022 0.31739%
Proportion - June 30, 2023 0.31236%
Change - Increase (Decrease) -0.00503%
Safety
Proportion - June 30, 2022 0.21085%
Proportion - June 30, 2023 0.21700%
Change - Increase (Decrease) 0.00615%
69
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – PENSION PLANS (Continued)
For the year ended June 30, 2024, the City recognized pension expense of $1,586,756. As of June 30, 2024, 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 $1,894,540 $1,841,260 Differences between actual and expected experience 1,190,891 ($101,953) 797,928 ($123,778) Changes in assumptions 946,656 943,018
Net differences between actual and proportional
contribution 90,528 (707,112) 121,015 (150,716)
Net differences between projected and actual earnings
on plan investments 2,219,785 2,528,935
Adjustment due to differences in proportion 1,059,544 (2,525,190) 2,422,479 (689,547) Total $7,401,944 ($3,334,255) $8,654,635 ($964,041)
(Continued)
Safety Plan Miscellaneous Plan
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $3,735,800 Differences between actual and expected experience 1,988,819 ($225,731) Changes in assumptions 1,889,674
Net differences between actual and proportional
contribution 211,543 (857,828)
Net differences between projected and actual earnings
on plan investments 4,748,720
Adjustment due to differences in proportion 3,482,023 (3,214,737) Total $16,056,579 ($4,298,296)
Total
$3,735,800 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Year Ended Annual
June 30 Amortization
2025 $483,177
2026 (206,729)
2027 1,834,742
2028 61,959
Total $2,173,149
Safety Plan
Year Ended Annual
June 30 Amortization
2025 $1,984,028
2026 1,829,176
2027 1,963,564
2028 72,566
Total $5,849,334
Miscellaneous Plan
70
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – PENSION PLANS (Continued)
Actuarial Assumptions – For the measurement period ended June 30, 2023, the total pension liability was determined by rolling forward the June 30, 2022 total pension liability. The June 30, 2022 total pension liabilities were based on the following actuarial methods and assumptions for all benefit 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) Depending on age, service, and type of employment.
(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, 2022
June 30, 2023
Entry-Age Normal Cost Method
All CalPERS Plans
6.90%
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2022 valuation were based on the results of a November 2021 actuarial experience study for the period 2001 to 2019. Further details of the Experience Study can be found on the CalPERS website.
Discount Rate – The discount rate used to measure the total pension liability 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.
71
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – PENSION PLANS (Continued)
The expected real rate of return by asset class are as follows:
Asset Class (1)
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 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:
Safety Miscellaneous
1% Decrease 5.90% 5.90%
Net Pension Liability $23,992,844 $23,153,996
Current Discount Rate 6.90% 6.90%
Net Pension Liability $16,220,601 $15,619,481
1% Increase 7.90% 7.90%
Net Pension Liability $9,866,240 $9,417,928
72
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024, the PARS Plan had one retiree 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, 2024, the contributions to the PARS Plan were as follows:
PARS
Contributions - employer $21,577
73
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 9 – PENSION PLANS (Continued)
Discount Rate – The discount rate used to measure the total pension liability for the PARS Plan was 6.0%. The pension trust is projected to have sufficient assets to pay benefits per the Plan’s current contribution policy.
PARS
Valuation Date June 30, 2024
Measurement Date June 30, 2024
Actuarial Cost Method Entry-Age Normal
Actuarial Assumptions:
Discount Rate 6.00%
Inflation 2.50%
Payroll Growth 0.0%
Cost of Living Adjustments 2.0%
Investment Rate of Return 6.00%
Mortality Rate Table RP-2000 Table projected to 2030 per Scale BB (as prescribed by PARS) 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.
Changes of assumptions: For the measurement year ended June 30, 2024, changes of assumptions included a discount rate change from 6.50% to 6.00%.
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 5.00% 0.94%
US Core Fixed Income (Aggregate) 33.50% 2.52%
US Short (1-3 Yr) Government/Credit Bonds 10.00% 1.65%
US High Yield Bonds 1.50% 4.43%
US Large & Mid Cap Equity 26.50% 5.41%
US Mid Cap Equity 5.00% 5.98%
US Small Cap Equity 7.50% 6.99%
Foreign Developed Equity 6.00% 6.92%
Emerging Markets Equity 3.25% 9.34%
US REITs 1.75% 6.91%
Total 100%
74
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024, 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, 2024.
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, 2023 $827,946 $798,128 $29,818
Changes for the year:
Service cost -
Interest on the total pension liability 52,855 52,855
Effect of economic/demographic gains or losses (6,115) (6,115) Effect of assumption changes or inputs 45,297 45,297
Benefit payments (30,054) (30,054) -
Employer contributions 21,577 (21,577)
Net investment income 90,353 (90,353)
Administrative expenses (4,187) 4,187
Net changes during 2023-2024 61,983 77,689 (15,706)
Balance at June 30, 2024 $889,929 $875,817 $14,112
For the year ended June 30, 2024, the City recognized pension expense of $52,464 for the PARS Plan. At June 30, 2024, the City reported deferred outflows of resources related to pension contributions subsequent to measurement date of $21,577 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 $10,782.
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
2025 $3,902
2026 23,425
2027 (8,769)
2028 (7,776)
Total $10,782
75
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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 6.00%, 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 (5.00%) or 1 percentage-point higher (7.00%) than the current rate:
Miscellaneous - PARS
1% Decrease 5.00%
Net Pension Liability (Asset) $111,012
Current Discount Rate 6.00%
Net Pension Liability (Asset) $14,112
1% Increase 7.00%
Net Pension Liability (Asset) ($67,856)
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 37 retirees receiving post-employment health care benefits from the City.
As of June 30, 2024, approximately 99 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
76
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 10 – OTHER POST-EMPLOYMENT BENEFITS (OPEB) (Continued) B. Employees Covered by Benefit Terms
At June 30, 2024, the benefit terms covered the following employees:
Number of
Covered Employees
Retirees and beneficiaries receiving benefits 51
Active employees 99
150
C. Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2022, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2023.
D. Actuarial Assumptions
The total OPEB liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods in the measurement, unless otherwise specified:
Measurement Date June 30, 2023
Funding Policy Annual actuarial determined contributions Salary Increases Aggregate salary increases, 2.80%. Individual salary increased based on CalPERS
Healthcare Cost Trend Rate Pre-Medicare 7.40%, Medicare 4.20% Trending down to 4.14% over 56 years.
Inflation 2.30%
Actuarial Assumptions:
Discount Rate 5.43%
Investment Rate of Return 6.30%
Mortality Based on CalPERS tables
The discount rate used to measure the total OPEB liability was 5.43%. 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.
Changes of assumptions For the measurement year ended June 30, 2023, changes of assumptions included a discount rate change from 5.45% to 5.43%, and investment rate of return from 5.45% to 6.3%.
77
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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)
$8,493,759 $3,498,278 $4,995,481
(Measurement Date 6/30/22)
Changes Recognized for the Measurement Period:
Service cost 270,136 270,136
Interest 463,540 463,540
Changes of assumptions (632,706) (632,706)
Investment gains or losses on expected return
contributions 1,898,564 1,898,564
Contributions:
Employer - City's contribution 404,004 (404,004)
Employer - Implicit subsidy 113,133 (113,133)
Net investment income 261,892 (261,892)
Benefit payments (404,004) (404,004)
Implicit rate subsidy fulfilled (113,133) (113,133)
Administrative expenses (20,765) 20,765
Net Changes during Fiscal Year 2024 1,482,397 241,127 1,241,270 $9,976,156 $3,739,405 $6,236,751
Increase (Decrease)
Balance at Fiscal Year Ending 6/30/2023:
Balance at Fiscal Year Ending 6/30/2024:
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 (4.43%) or one percentage point higher (6.43%), as follows:
1% Decrease Current 1% Increase
4.43% 5.43% 6.43%
Net OPEB Liability $7,262,049 $6,236,751 $5,364,140
Discount Rate
G. Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability of the City, as well as what the City’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower (6.40%) or one percentage point higher (8.40%) than current healthcare cost trend rates, as follows:
1% Decrease Current 1% Increase
6.40% 7.40% 8.40%
to 3.14.% to 4.14.% to 5.14.%
Net OPEB Liability $5,325,347 $6,236,751 $7,314,206
Trend Rate
78
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024, the City recognized OPEB expense of $58,941. At June 30, 2024, 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 $674,930
Differences between actual and expected experience ($929,490) 2,069,431 Net difference between projected and actual earnings
on OPEB plan investments 193,519
Changes of assumptions 384,614 (725,143)
Total $3,322,494 ($1,654,633)
A total of $674,930 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. 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
2025 $148,813
2026 82,945
2027 106,406
2028 (26,796)
2029 146,007
Thereafter 535,556
Total $992,931
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.
79
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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 2024.
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.
80
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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, 2024 were:
Lessor Property Address
Original
Lease Date
Lease Ending
Date
Term
Duration
(Years)
Remaining
Lease Term
(Years)
Extension
Years
Orsini Court Trust 25 Park Place 1/1/2022 12/31/2046 25 23 - (Continued below)
Lessor
Expiration
Date
Including
Options Interest Exp
Principal
Expenditures
Monthly
Payment Lease Asset Lease Liability
Orsini Court Trust 12/31/2046 $142,885 $171,084 various $8,701,533 $8,238,883 81
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
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
2025 $182,724 $139,979 $322,703
2026 195,862 136,874 332,736
2027 209,173 133,547 342,720
2028 223,005 129,993 352,998
2029 248,292 126,204 374,496
2030 - 2034 1,435,930 563,552 1,999,482
2035 - 2039 1,877,412 427,518 2,304,930
2040-2044 2,421,842 250,210 2,672,052
2045-2047 1,444,643 44,690 1,489,333
Totals $8,238,883 $1,952,567 $10,191,450
NOTE 12 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITAs)
A SBITA is a contract that conveys control of the right to use another party’s (a SBITA vendor’s) IT software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction.
At the commencement of a SBITA, the City initially measures the subscription liability at the present value of payments expected to be made during the contract term. Subsequently, the subscription liability is reduced by the principal portion of payments made. The subscription asset is initially measured as the initial amount of the subscription liability, adjusted for payments made at or before the SBITA commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight‐line basis over shorter of the subscription term or the useful life of the underlying IT assets.
Key estimates and judgments related to SBITAs include how the City determines (1) the discount rate it uses to discount the expected subscription payments to present value, (2) subscription term, and (3) subscription payments as follows:
• The City uses the interest rate charged by the IT vendor as the discount rate. When the interest rate charged by the IT vendor is not provided, the City generally uses its estimated incremental borrowing rate as the discount rate for subscription liabilities. • The subscription term includes the noncancellable period of the subscription. • Subscription payments included in the measurement of the subscription liability are composed of fixed payments and purchase option price that the City is reasonably certain to exercise.
82
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 12 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS (SBITAs) (Continued)
The City monitors changes in circumstances that would require a remeasurement of its subscription and will remeasure the subscription asset and liability if certain changes occur that are expected to significantly affect the amount of the subscription liability.
Subscription assets are reported with other capital assets and subscription liabilities are reported as longterm debt on the statement of net position.
During the fiscal year, the City entered into one SBITA with Clariti Cloud Inc. that qualifies to be recorded under GASB 96. The agreement commenced October 10, 2023, and expires on November 30, 2033.
The future principal and interest subscription liability payments as of June 30, 2024 are as follows:
Year ending
June 30: Principal Interest Total
2025 $107,880 $22,320 $130,200
2026 116,223 20,487 136,710
2027 125,033 18,513 143,546
2028 134,334 16,388 150,722
2029 144,153 14,106 158,259
2030-2033 686,099 30,124 716,223
Total $1,313,722 $121,938 $1,435,660
NOTE 13 – 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. 83
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 13 – RISK MANAGEMENT (Continued)
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.
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, 2024, 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 $1,676,961
Changes to estimated claims liability (37,783)
Claims paid (25,314)
Ending balance of claims payable $1,613,864
Current Portion $452,362
84
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 14 – 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.
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, 2024 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.
85
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 14 – COMMITMENTS AND CONTINGENT LIABILITIES (Continued) 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.
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 $102,303 during fiscal year 2024 which is included as a component of purchased water expenses in the Utility Enterprise Fund. The surcharge for fiscal year 2025 is estimated to be $98,896.
86
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 14 – COMMITMENTS AND CONTINGENT LIABILITIES (Continued) 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.
87
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 15 – 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 ($810,406) ($5,261,115) $8,179,612 $2,108,091 Restricted cash 42 10 53 105
Accounts receivable, net 469,243 469,242 469,242 1,407,727 Taxes receivable - - 495 495
Interest receivable 3,486 2,218 4,859 10,563
Total current assets (337,635) (4,789,645) 8,654,261 3,526,981 Noncurrent assets:
Capital assets:
Non-depreciable 22,839 180,266 673,097 876,202
Depreciable, net 5,094,059 8,280,966 12,009,940 25,384,965 Total capital assets 5,116,898 8,461,232 12,683,037 26,261,167 Total noncurrent assets 5,116,898 8,461,232 12,683,037 26,261,167 Total Assets 327,253 8,123,597 21,337,298 29,788,148
DEFERRED OUTFLOWS
Deferred outflows related to pension 335,686 335,687 335,687 1,007,060 Deferred outflows related to OPEB 54,576 54,575 54,575 163,726 Total Deferred Outflows 390,262 390,262 390,262 1,170,786
LIABILITIES
Current liabilities:
Accounts payable 236,524 236,524 236,523 709,571
Accrued payroll 23,726 23,726 23,727 71,179
Interest payable 20,926 20,926 20,925 62,777
Compensated absences 4,416 4,416 4,417 13,249
Deposits 6,896 6,896 6,897 20,689
Bonds payable due within one year 146,667 146,667 146,666 440,000 Unearned revenue 238,782 238,782 238,782 716,346
Total current liabilities 677,937 677,937 677,937 2,033,811 Noncurrent liabilities:
Compensated absences 13,250 13,250 13,248 39,748
Advances from other funds
Bonds payable due in more than one year 1,621,667 1,621,667 1,621,666 4,865,000 Net pension liability 461,829 461,829 461,829 1,385,487 Net OPEB liability 84,900 84,901 84,902 254,703
Total noncurrent liabilities 2,181,646 2,181,647 2,181,645 6,544,938 Total Liabilities 2,859,583 2,859,584 2,859,582 8,578,749
DEFERRED INFLOWS
Deferred inflows related to pension 193,223 193,223 193,224 579,670 Deferred inflows related to OPEB 18,075 18,075 18,074 54,224 Total Deferred Inflows 211,298 211,298 211,298 633,894
NET POSITION
Invested in capital assets, net of related debt 6,692,940 3,348,574 10,914,758 20,956,272 Restricted for:
Capital projects 250,432 159,366 349,087 758,885
Unrestricted (1,500,397) (5,861,306) 7,392,837 31,134
Total Net Position $5,442,975 ($2,353,366) $18,656,682 $21,746,291 88
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 15 – SEGMENT INFORMATION (Continued)
Utility Fund Statement of Activities
Guadalupe
Valley Municipal
Improvement Total
Water Sewer District Utility
OPERATING REVENUES:
Charges for services $2,145,580 $1,460,977 $3,137,973 $6,744,530 Total operating revenues 2,145,580 1,460,977 3,137,973 6,744,530 OPERATING EXPENSES:
Costs of sales and services 1,428,029 1,337,932 1,302,339 4,068,300 General and administrative 1,724,338 1,043,071 1,438,054 4,205,463 Depreciation 238,707 82,565 336,272 657,544
Other expenses 500 500
Total operating expenses 3,391,574 2,463,568 3,076,665 8,931,807 OPERATING INCOME (LOSS) (1,245,994) (1,002,591) 61,308 (2,187,277) NONOPERATING REVENUES (EXPENSES):
Taxes and assessments - - 33,673 33,673
Investment income 57,332 57,335 57,335 172,002
Interest expense (65,369) (65,369) (65,370) (196,108)
Total nonoperating revenues (expenses) (8,037) (8,034) 25,638 9,567 INCOME (LOSS) BEFORE TRANSFERS (1,254,031) (1,010,625) 86,946 (2,177,710) Developer Contributions 20,000 - - 20,000
Transfers in 14,119 14,119 14,119 42,357
Transfers out (20,095) (20,097) (20,097) (60,289)
Total transfers in and out 14,024 (5,978) (5,978) 2,068 Change in net positions (1,240,007) (1,016,603) 80,968 (2,175,642) NET POSITIONS:
Beginning of year 6,682,982 (1,336,763) 18,575,714 23,921,933 End of year $5,442,975 ($2,353,366) $18,656,682 $21,746,291 89
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 15 – 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 $2,065,356 $1,380,755 $3,057,751 $6,503,862 Cash payments to suppliers (3,037,557) (2,242,332) (2,602,291) (7,882,180) Net cash provided (used) by operating activities (861,577) (972,201) 455,460 (1,378,318) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Taxes and assessments 33,827 33,827
Transfers in 14,119 14,119 14,119 42,357
Transfers out (20,095) (20,097) (20,097) (60,289)
Net cash provided (used) by noncapital financing activities (5,978) (5,976) 27,849 15,895
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITIES:
Principal payment of debt (138,333) (138,332) (138,335) (415,000) Interest paid (67,963) (67,962) (67,964) (203,889)
Developer contributions 20,000 20,000
Net cash provided (used) by capital
and related financing activities (206,294) (186,296) (206,299) (598,889) CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income received 59,871 59,066 60,809 179,746 Net cash provided (used) by investing activities 59,066 59,871 60,809 179,746 Net increase (decrease) in cash and cash equivalents (1,014,783) (1,104,602) 337,819 (1,781,566) CASH AND CASH EQUIVALENTS:
Beginning of year 294,238 (4,246,322) 7,841,846 $3,889,762 End of year ($810,364) ($5,261,105) $8,179,665 $2,108,196 FINANCIAL STATEMENT PRESENTATION:
Cash and cash equivalents ($810,406) ($5,261,115) $8,179,612 $2,108,091 Restricted cash 42 10 53 105
Total cash and cash equivalents ($810,364) ($5,261,105) $8,179,665 $2,108,196
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Operating income (loss) ($1,245,994) ($1,002,591) $61,308 ($2,187,277) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities:
Depreciation 238,707 82,565 336,272 657,544
Changes in current assets and liabilities:
Accounts receivable (80,224) (80,222) (80,222) (240,668) Accounts payable and accrued liabilities (27,470) (27,468) (27,469) (82,407) Accrued payroll 8,641 8,641 8,643 25,925
Compensated absences (19,630) 3,729 3,157 (12,744)
Deposits 463 463 464 1,390
Net pension liability, deferred inflows and deferred outflows 168,034 168,034 168,034 504,102 Net OPEB liability, deferred inflows and deferred outflows (14,728) (14,728) (14,727) (44,183) Total adjustments 273,793 141,014 394,152 808,959
Net cash provided (used) by operating activities ($972,201) ($861,577) $455,460 ($1,378,318) 90
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 16 – 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, 2024 are discussed in Note 3.
B. Long-Term Obligations
Balance Balance Current Non-current
Description June 30, 2023 Retirements June 30, 2024 Portion Portion 2013 Tax Allocation Bonds $5,105,000 ($1,570,000) $3,535,000 $1,645,000 $1,890,000 Total long-term debt $5,105,000 ($1,570,000) $3,535,000 $1,645,000 $1,890,000 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, 2024 was $670,308.
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.
91
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 16 – REDEVELOPMENT AGENCY DISSOLUTION AND SUCCESSOR AGENCY ACTIVITIES (Continued)
Total principal and interest remaining to be paid on the bonds is $3,733,196. Principal and interest paid for the current year was $1,765,098.
The annual debt service requirements on the bonds were as follows:
Year ending
June 30: Principal Interest Total
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 $3,535,000 $198,196 $3,733,196
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 17 – 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, 2024, more than 13.60% of the City’s General Fund’s total revenues were derived from a single company.
NOTE 18 – COMMITMENTS AND CONTINGENCIES
On June 20, 2022, the City received a $3 million Equitable Community Revitalization Grant from the California Department of Toxic Substances Control to reimburse the City for Environmental Investigation activities related to the Brisbane Baylands. Approximately $150,000 will be costs associated with City administrative functions related to the grant. For the remainder, the City has contracted a developer to complete various investigations and treatability studies that will be incorporated into a Remedial Design Implementation Plan. As of June 30, 2024, approximately $2.3 million of the funds have been spent.
92
CITY OF BRISBANE
NOTES TO BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2024
NOTE 19 – SUBSEQUENT EVENTS
A. City’s 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.
B. Housing Element Rescinded
On July 1, 2026, the City received notice that the California Department of Housing and Community Development (HCD) rescinded certification of the City’s Housing Element. The City had timely adopted the Housing Element and submitted to the HCD timely in May 2023.
Since limited zoning capacity exists in Central Brisbane, the Housing Element committed the City to adopting a Specific Plan for the Baylands where the majority of the City’s future housing needs could be accommodated. State law provides three years from adoption of the Housing Element to implement necessary rezoning. The statutory deadline for the City was May 18, 2026.
Despite significant progress, the City was not able to complete the process within the timeframe established by statute. Therefore HCD has rescinded certification of the City’s Housing element until such time as the City approves a Baylands Specific Plan and associated rezoning. While decertified, the City is ineligible for certain State grant funds.
The City has set a timeline to be able to adopt the Specific Plan in Fall 2026, and once adopted, the City anticipates recertification of its Housing Element by HCD.
C. Housing Authority Loan
As discussed in Note 5.C., the Authority’s Low and Moderate Income Housing Asset Special Revenue Fund had a loan receivable balance from Bridge Housing Corporation of $2.3 million, excluding interest of approximately $968 thousand that was not recorded in the fund.
This loan was subsequently assigned to Brisbane Senior Housing (BSH).
In May 2026, the Authority agreed to forgive the $968 thousand of interest due on the BSH loan balance. The Authority also agreed to enter into a new 55-year ground lease with the Housing Endowment and Regional Trust of San Mateo County (HEART-SV), a joint powers authority consisting of members of the cities in San Mateo County (including Brisbane) and San Mateo County. As part of these agreements, the Authority will loan HEART-SV $390,250 from the Authority's Low and Moderate Income Housing Asset Fund, in addition to HEART-SV's assuming $3,062,564 of the current Brisbane Senior Housing (BSH) loan balance (currently under Bridge Housing). The total loan amount of $3,452,814 is to be repaid over the next 55 years from available Residual Receipts, but there is no guarantee that the full amount of the loan will be received.
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
CalPERS Miscellaneous Cost-Sharing Defined Benefit Pension Plan As of fiscal year ending June 30, 2024
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 Fiduciary Net Position as a Percentage of
the Plan's Total Pension Liability 79.82% 780.40% 74.06% 73.31% 75.26% 96
CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
Miscellaneous Plan
6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023
0.28626% 0.29337% 0.21971% 0.31739% 0.31236%
$11,463,436 $12,374,693 $4,171,920 $14,488,529 $15,619,481 $5,116,913 $5,681,738 $6,036,451 $6,608,303 $6,963,537
224.03% 217.80% 69.11% 219.25% 224.30%
75.26% 75.10% 88.29% 76.68% 76.21%
97
CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
CalPERS Miscellaneous Cost-Sharing Defined Benefit Pension Plan As of fiscal year ending June 30, 2024
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
The probabilities of mortality are derived from CalPERS' Membership Data for all Funds based on CalPERS' specific data from a 2021 CalPERS Experience Study. The table includes 15 years of mortality improvements using the Society of Actuaries Scale BB. 6/30/2013 6/30/2014 6/30/2015
55 yrs. Misc., 60 yrs. Tier 2, 62 yrs. Tier 3
2.30%
20 years as of the valuation date
Level percentage of payroll, closed
Entry age
7.15%, net of pension plan investment and administrative expenses, including inflation 5-year smoothed market
Varies by Entry Age and Service
98
CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
2020 2021 2022 2023 2024
$1,321,787 $1,485,149 $1,637,353 $1,792,450 $1,841,260
(1,485,149) (1,637,353) (1,792,450) (1,841,260) (1,321,787) $0 $0 $0 $0 $0
$5,681,738 $6,036,451 $6,608,303 $6,963,537 $7,308,863
23.26% 24.60% 24.78% 25.74% 25.19%
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
Miscellaneous Plan
99
CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
CalPERS Safety Cost-Sharing Defined Benefit Pension Plan As of fiscal year ending June 30, 2024
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 Fiduciary Net Position as a Percentage of
the Plan's Total Pension Liability 79.82% 78.40% 74.06% 73.31% 75.26%
100
CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
Safety Plan
6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023
0.18250% 0.18910% 0.34669% 0.21085% 0.21700%
$11,392,654 $12,598,788 $12,166,933 $14,851,196 $16,220,601 $3,205,518 $3,087,221 $3,479,518 $3,877,024 $3,879,797
355.41% 408.09% 349.67% 383.06% 418.08%
75.26% 75.10% 88.29% 76.68% 76.21%
101
CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
CalPERS Safety Cost-Sharing Defined Benefit Pension Plan As of fiscal year ending June 30, 2024
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 (446,822) (544,677) (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
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 2021 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
2.30%
5-year smoothed market
20 years as of the valuation date
Level percentage of payroll, closed
7.15%, net of pension plan investment and administrative expenses, including inflation
102
CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
Safety Plan
2020 2021 2022 2023 2024
$1,210,715 $1,400,561 $1,571,251 $1,734,220 $1,894,540
(1,210,715) (1,400,561) (1,571,251) (1,734,220) (1,894,540) $0 $0 $0 $0 $0
$3,087,221 $3,479,518 $3,877,024 $3,879,797 $3,687,627
39.22% 40.25% 40.53% 44.70% 51.38%
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
PARS
103
CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
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 10,905 4,039
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) Benefit payments
Net investment income 8,348 166 40,594 27,708 33,121
Employer contributions 21,117 20,560 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% Source: PARS Valuation
104
CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
2020 2021 2022 2023 2024
$17,181 $17,525 $16,841 $16,841
42,958 43,510 47,433 50,532 $52,855
11,610 21,424 (6,115)
(63,596) (38,013) 45,297
(30,054)
8,153 61,035 47,685 67,373 61,983
643,700 651,853 712,888 760,573 827,946
$651,853 $712,888 $760,573 $827,946 $889,929
($2,940) ($3,530) ($3,980) ($3,747) ($4,187)
(30,054)
18,504 138,590 (108,805) 52,283 90,353
37,400 37,400 37,400 38,838 21,577
52,964 172,460 (75,385) 87,374 77,689
560,715 613,679 786,139 710,754 798,128
$613,679 $786,139 $710,754 $798,128 $875,817
$38,174 ($73,251) $49,819 $29,818 $14,112
94.14% 110.28% 93.45% 96.40% 98.41%
$251,940 $263,451 $263,451 $263,451 -
15.15% -27.80% 18.91% 11.32% -
105
CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
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
Source: City's general ledger and PARS Actuarial Valuation RP-2000 Table projected to 2030 per Scale BB (as prescribed by PARS)
2.00%
100% retirement assumed at age 68
6.0%, net of pension plan investment expense, including inflation (7.0% for fiscal year 2016 and prior)
106
CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
2020 2021 2022 2023 2024
$37,400 $37,400 $37,400 $38,838 $24,577
(37,400) (37,400) (37,400) (38,838) (24,577)
$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 6/30/2023
107
CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
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 2023 Total OPEB Liability
Service Cost $220,254 $213,187 $218,316 $192,805 $216,149 $259,497 $270,136 Interest 548,482 443,442 464,182 534,815 534,725 435,962 463,540 Changes of benefit terms 269,186
Differences between expected and actual experience (905,016) 1,384,906 (131,962) (1,567,041) 47,929 1,898,564 Changes of assumptions (1,676,108) 16,310 (664,205) 392,074 213,210 158,569 (632,706) Benefit Payments (246,909) (219,950) (241,551) (253,735) (245,509) (355,455) (404,004) Implicit rate subsidy fulfilled (162,600) (104,418) (93,910) (122,211) (141,442) (118,682) (113,133) Net change in Total OPEB Liability (1,952,711) 348,571 1,067,738 611,786 (989,908) 427,820 1,482,397 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 8,493,759 Total OPEB Liability at end of year 7,027,752 $7,376,323 $8,444,061 $9,055,847 $8,065,939 $8,493,759 $9,976,156 Plan Fiduciary Net Position
Contributions - employer $346,909 $619,950 $641,551 $853,735 $678,405 $355,455 $404,004 Implicitly subsidy - employer 162,600 104,418 93,910 122,211 745,509 118,682 113,133 Contributions - member
Net investment income 74,661 79,874 121,293 105,672 141,442 (517,416) 261,892 Benefit payments (246,909) (219,950) (241,551) (253,735) (245,509) (355,455) (404,004) Implicit rate subsidy fulfilled (162,600) (104,418) (93,910) (122,211) (141,442) (118,682) (113,133) Administrative expenses (1,353) (3,123) (4,352) (14,509) (19,916) (23,379) (20,765) Net change in Plan Fiduciary Net Position 173,308 476,751 516,941 691,163 1,158,489 (540,795) 241,127 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 3,498,278 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 $3,739,405 City's Net OPEB Liability (Asset) at end of year $5,832,023 $5,703,843 $6,254,640 $6,175,263 $4,026,866 $4,995,481 $6,236,751 Plan's Fiduciary Net Position as percentage of Total OPEB Liability 17.0% 22.7% 25.9% 31.8% 50.1% 41.2% 37.5% Covered Payroll $6,789,392 $6,976,100 $7,088,924 $8,425,996 $9,305,238 $10,058,563 $10,056,682 Net OPEB Liability as percentage of covered-employee payroll 85.90% 81.80% 88.23% 73.30% 43.30% 49.66% 62.02% Notes:
* Fiscal year 2018 was the first year of implementation, additional years will be shown when available. 108
CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
OPEB Plan
Schedule of Employer Contributions
Last Ten Fiscal Years*
For the Fiscal Year Ended June 30 2018 2019 2020 2021 2022 2023 2024 Actuarially determined contributions $621,742 $672,857 $712,357 $730,424 $619,838 $620,955 $800,933 Contributions in relation to the actuarially
determined contribution 724,368 735,461 975,946 886,951 474,137 517,137 674,930 Contributions deficiency (excess) ($102,626) ($62,604) ($263,589) ($156,527) $145,701 $103,818 $126,003 Covered Payroll $6,976,100 $7,088,924 $8,425,996 $9,305,238 $10,058,563 $10,056,682 $10,585,264 Contributions as a percentage of covered payroll 10.38% 10.37% 11.58% 9.53% 4.71% 5.14% 6.38% Notes to Schedule:
Valuation date 6/30/2023
Actuarial cost method Entry-age normal, level percent of pay Amortization method
Remaining amortization period 19 years
Inflation 2.30%
Projected salary increases 2.80%
Healthcare trend rate
Rate of Return on Assets 6.30%
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
7.40%, trending
Methods and assumptions used to determine contribution rates:
109
CITY OF BRISBANE
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Variance with
Budgeted Amounts Final Budget
Positive
Original Final Actual (Negative)
REVENUES:
Taxes and special assessments $16,509,471 $17,406,484 $17,106,143 ($300,341) Intergovernmental 89,000 89,000 5,613,027 5,524,027
Licenses, permits and fees 6,160,500 6,849,074 6,990,435 141,361 Charges for services 3,313,736 3,313,736 4,098,159 784,423 Fines and forfeitures 24,000 24,000 55,740 31,740
Use of money and property 170,000 462,083 1,119,399 657,316 Other revenues 459,000 776,700 436,690 (340,010)
Total Revenues 26,725,707 28,921,077 35,419,593 6,498,516 EXPENDITURES:
Current:
General government 9,825,558 9,825,558 12,084,654 (2,259,096) Public safety - police 6,349,294 6,349,294 6,977,687 (628,393) Public safety - fire 4,914,335 4,914,335 5,046,127 (131,792) Public works 2,834,828 2,834,828 3,100,333 (265,505)
Parks and recreation 3,139,164 3,139,164 3,129,206 9,958 Capital outlay 10,700 10,700 1,294,982 (1,284,282)
Debt service:
Principal 284,953 (284,953)
Interest and fiscal charges 166,883 (166,883)
Total Expenditures 27,073,879 27,073,879 32,084,825 (5,010,946)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (348,172) 1,847,198 3,334,768 1,487,570
OTHER FINANCING SOURCES (USES)
Proceeds from long-term obligations 6,798,703 6,798,703 Transfers in 191,876 191,876
Transfers (out) (1,554,663) (1,554,663) (1,853,003) (298,340) Total other financing sources (uses) (1,554,663) (1,554,663) 5,137,576 6,692,239 NET CHANGE IN FUND BALANCE ($1,902,835) $292,535 8,472,344 $8,179,809 BEGINNING FUND BALANCE 15,523,705
ENDING FUND BALANCE $23,996,049
110