CITY OF BRISBANE
LOW AND MODERATE INCOME HOUSING ASSETS
SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Budgeted Variance with
Amounts Final Budget
Positive
Final Actual (Negative)
REVENUES:
Intergovernmental $31,288 $31,288
Use of money and property 223,292 223,292
Total Revenues 254,580 254,580
EXPENDITURES:
Current:
Public works $95,000 81,970 13,030
Total Expenditures 95,000 81,970 13,030
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (95,000) 172,610 267,610
OTHER FINANCING SOURCES (USES)
Proceeds from sales of capital assets
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCE ($95,000) 172,610 $267,610
BEGINNING FUND BALANCE 4,475,760
ENDING FUND BALANCE $4,648,370
SPECIAL REVENUE FUND
111
CITY OF BRISBANE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. A City Council goal setting session is scheduled to determine the major objectives of the City’s financial plan for the year. Goals are approved by the Council and incorporated into a detailed preliminary budget, which is issued for public comment. After a series of public hearings, the budget is adopted by the City Council prior to the beginning of the ensuing fiscal year (July 1).
2. The City Manager is authorized to transfer budgetary amounts within a single fund; however, any revisions that alter the total expenditures of any fund exceeding $200,000 must be approved by the City Council.
3. Legally adopted budgets and formal budgetary integration is employed as a management control device during the year for the General Fund, certain special revenue funds, and the debt service funds. The Fire Training, Contract Employees, Tree Plant and Habitat Conservation Special Revenue Funds are special revenue funds with single focus purpose that when needed are approved by City Council or part of an existing contract and therefore did not have adopted budgets for the fiscal year. The capital projects funds did not have adopted budgets for the fiscal year, but all capital projects are approved by City Council prior to commitment. The legal level of budgetary control is the department/program level.
4. Budgets for those governmental funds budgeted are adopted on a basis consistent with GAAP.
5. Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended June 30, 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 Administrative Services Director must approve adjustments to departmental budgets; however, management may amend the budgeted amounts within departmental expenditure classifications.
7. Appropriations lapse at the end of the fiscal year to the extent they have not been expended or encumbered are re-budgeted for the coming year.
112
SUPPLEMENTAL INFORMATION
This Page Left Intentionally Blank
NON-MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Gas Tax Fund. Portions of the tax rate per gallon levied by the State of California on all gasoline purchases are allocated to cities throughout the State on a population basis. These funds are restricted for expenditures by the State of California for street-related purposes only (reference California Streets and Highways Code Sections 2105, 2106, 2107 and 2107.5).
Measure A Fund. The County of San Mateo voters approved a half cent sales tax measure in 1988 which is designated for transportation related facilities and roads. The sales tax revenues received pursuant to Measure A are distributed to cities based on population (50%) and road miles (50%).
Measure W Fund. The County of San Mateo voters approved a half cent sales tax measure in 2019 which is designated for congestion relief. The sales tax revenues received pursuant to Measure W are distributed to cities based on population (50%) and road miles (50%).
Sierra Point Landscape & Lighting Fund. To account for special assessment revenues and costs of providing landscaping and lighting services within the boundaries of the Sierra Point Landscape and Lighting District.
Grants. To account for activities of various grants including Local Law Enforcement Block Grant, Community Oriented Policing Grant, the COPS Technology Grant, and Supplemental Law Enforcement Services Fund (SLESF) Grant.
National Pollution Discharge Elimination System Fund (NPDES). Federal statute mandates a program aimed at the elimination of pollutants from drainage systems. Commonly known as NPDES, a special revenue fund is required by law to account for tax assessments collected and expenditures incurred in administering this program.
Traffic Congestion Relief Fund. Receives and disburses the City’s share of state gasoline tax collections in accordance with the provisions of California’s Traffic Congestion Relief Act of 2000.
Revenues reflect loan payments received over five years through the Traffic Congestion Relief Program.
Fire Training Fund. This fund was created from the return and refund of one of the Universal Trainers for the Fire Department. This fund will accumulate funds dedicated to Fire Training and equipment.
Contract Employees. This fund was created to track the salary and benefits of city employees who have been contracted to other agencies and the reimbursements from the hiring agency.
Public Arts. This fund was established to receive deposits from developers as part of the “Art in Public Places Program.” Commercial projects with development costs in excess of $1,000,000 are required to contribute 1% of the cost to the Brisbane Public Art Fund. Public Projects with development costs in excess of $1,000,000 are required to contribute 0.5% of the cost to the Brisbane Public Art Fund. Projects in excess of $5,000,000 can choose to pay into the Brisbane Public Art Fund or pay for public art directly.
Tree Plant. This fund receives deposits from PG&E to replace the cost of any trees that must be removed for electrical repairs or maintenance. The City will use these funds to plant trees elsewhere within city limits.
115
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Habitat Conservation Program. Established to account for new development fees dedicated to habitat conservation as part of the San Mateo County San Bruno Mountain Habitat Conservation Plan.
The Plan is a landmark environmental regulatory document that aims to protect endangered butterfly and snake species native to San Bruno Mountain while allowing for the development of privately owned parcels within the HCP area. In Brisbane, the HCP area includes privately owned land in the Brisbane Acres subarea, Southwest Bayshore subarea, Northeast Ridge, Guadalupe Hills, and other hillside properties in the northwest Bayshore subarea.
SB1 Road Maintenance and Rehabilitation. Receives and disburses the City’s share of funding from California’s Road Repair and Accountability Act of 2017 (SB1). SB1 established fuel taxes and vehicle fees to fund local road maintenance, safety improvements and complete street improvements including facilities for bicycles and pedestrians. Revenues received before fiscal year 2021 were reported as part of Fund 200 (Gas Tax).
ARPA. The State of and Local Coronavirus Fiscal Recovery Funds legislation, part of the American Rescue Plan Act (ARPA) was signed into law by President Biden in March 2021. The bill established funds allocated to recovering from the pandemic and restoring the economy. The US Department of the Treasury is responsible for oversight and to administer these payments to the State of California for non-entitlement cities (population less than 50,000), which includes the City of Brisbane. The City was allocated a total of $1,117,402 to be paid in two separate and equal tranches in July of 2021 and 2022, respectively. All funds must be obligated by December 2024, and agencies have until December 2026 to fully expend their funds to use the funds for qualifying programs. This fund was created to monitor the payments received and related expenditures.
DEBT SERVICE FUNDS
Brisbane Public Financing Authority:
2006 Pension Obligation Bonds Fund. This fund accounts for the debt service for the 2006 Pension Obligation Bonds issued August 2006. These bonds were issued to refund a portion of the City’s obligations to PERS.
2001 Revenue Bonds, Series B Fund. This fund accounts for the debt service for the 2001 Revenue Bonds, Series B which were issued to acquire the City's Marina Boulevard and Lagoon Road Local Improvement District 79-1 and to refund certain outstanding revenue bonds issued by the Authority.
2005 Revenue Bonds, Series A Fund. This fund accounts for the City’s portion of debt service for the 2005 Revenues Bonds, Series A which were issued to refund the 1995 Certificates of Participation Bonds and to finance certain capital projects for the City. Debt service for a portion of these bonds is met from transfers from the Community Redevelopment Agency Project Area 2 and the Utility Fund where portions of the 1995 COP bonds proceeds were expended to finance capital improvements.
2013 Pension Side Fund Bonds Fund. This fund accounts for the debt service of the 2013 Pension Side Fund Bonds issued June 2013. These bonds were issued to pay the unfunded liability to CalPERS for the City’s Miscellaneous Pension side fund. 116
NON-MAJOR GOVERNMENTAL FUNDS (Continued)
Brisbane – Guadalupe Valley Municipal Improvement Financing Authority:
Brisbane-Guadalupe Valley Municipal Improvement District Public Financing Authority Fund. This fund accounts for the debt service for the refunding of the 2005 BPFA Revenue Bonds, Series B. Those bonds were issued to finance City Hall seismic upgrades and other improvements. The debt service will be met with lease payments from the City to the Authority. 2017 Brisbane-Guadalupe Valley Municipal Improvement District Lease Refunding Fund.
This fund accounts for the debt service for the refunding of the 2009 BPFA Revenue Bonds, Series A. Those bonds were issued to finance City Hall seismic upgrades and other improvements.
The debt service will be met with lease payments from the City to the Authority. 2022 Brisbane-Guadalupe Valley Municipal Improvement District Public Financing Authority Fund. This fund accounts for the debt service for the 2022 Bank of the West Loan.
Those loan was issued to finance the building and land of the former Bank of America branch located at 70 Old County Road in Brisbane. The debt service will be met with lease payments from the City to the Authority.
2023 Brisbane-Guadalupe Valley Municipal Improvement District Public Financing Authority Fund. This fund accounts for the debt service for the 2023 Lease Revenue Bonds.
Those bonds were used to finance the costs of tenant improvements related to the building at 25 Park Place. The debt service will be met with lease payments from to the City to the Authority. 2018 Library Construction Loan Debt Service Fund. This fund accounts for the debt service for the 2018 Library Construction Loan from the County of San Mateo. The Project currently includes construction and construction management of the new library. The debt service will be met with property tax allocations.
CAPITAL PROJECTS FUNDS
Facilities Construction Fund. As a condition of the final map approval for the Northeast Ridge development, the developer was required to improve a number of facilities including municipal buildings, local streets, downtown parking, future trails, fire buffers and construct a community swimming pool. Funds deposited for these projects have been placed in a capital projects fund and as separate projects move ahead with construction, applicable amounts of this fund are moved to a construction fund to further account for the cost of a particular project.
South Hill Capital Projects Fund. This fund was established in fiscal 2015 due to the sale of a portion of the former Southern Pacific rail spur to Sheng Kee Bakery. The funds are directed to be used for capital project.
Park Development Capital Projects Fund. As a condition of the Development Agreement between Opus and the City approved February 2, 2017 the City received back Parcel R on Sierra Point.
Additionally, Opus provided funds which were designated for public improvements on this parcel.
This fund is used to track those funds.
117
CITY OF BRISBANE
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2024
SPECIAL REVENUE FUNDS
Sierra Point
Gas Landscape
Tax Measure A Measure W & Lighting
Cash and investments $394,068 $545,711 $231,568 $1,535,285 Restricted cash and investments with fiscal agents
Interest receivable 3,127 3,813 1,541 6,608
Taxes receivable 11,867 19,348 19,636
Total Assets $409,062 $568,872 $252,745 $1,541,893
Accounts payable $15,107
Accrued payroll 3,564
Due to other funds
Deposits payable
Unearned revenue
Total Liabilities 18,671
Restricted $409,062 $568,872 $252,745 1,523,222
Assigned
Unassigned
Total Fund Balances 409,062 568,872 252,745 1,523,222
Total Liabilities and Fund Balances $409,062 $568,872 $252,745 $1,541,893
LIABILITIES
ASSETS
FUND BALANCE
118
SPECIAL REVENUE FUNDS
Traffic Fire Contract Public
Grants NPDES Congestion Relief Training Employees Arts
$69,762 $13,469 $11,576 $3,600 $240,466 $2,549,411
1,300 (2,562) 58 18 1,195 12,670
1,456
$71,062 $12,363 $11,634 $3,618 $241,661 $2,562,081
$5,363 $962
8,565
$606
606 13,928 962
70,456 $11,634 $3,618 $241,661 2,561,119
(1,565)
70,456 (1,565) 11,634 3,618 241,661 2,561,119
$71,062 $12,363 $11,634 $3,618 $241,661 $2,562,081
(Continued)
119
CITY OF BRISBANE
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2024
SPECIAL REVENUE FUNDS
SB1 Road
Habitat Maintenance
Tree Conservation and
Plant Program Rehabilitation ARPA
ASSETS
Cash and investments $13,615 $48,199 $3,455 $1,110,833
Restricted cash and investments with fiscal agents
Interest receivable 68 240 1,121 5,520
Taxes receivable 10,102
Total Assets $13,683 $48,439 $14,678 $1,116,353
LIABILITIES
Accounts payable
Accrued payroll
Due to other funds
Deposits payable $44,291
Unearned revenue
Total Liabilities 44,291
FUND BALANCE
Restricted $13,683 4,148 $14,678 $1,116,353
Assigned
Unassigned
Total Fund Balances 13,683 4,148 14,678 1,116,353
Total Liabilities and Fund Balances $13,683 $48,439 $14,678 $1,116,353 120
DEBT SERVICE FUNDS
BrisbaneGuadalupe Valley 2017 BrisbaneMunicipal Guadalupe Valley Improvement Municipal
District Improvement
2006 Pension 2001 Revenue 2005 Revenue 2013 Pension Public District Obligation Bonds, Bonds, Side Fund Financing Lease
Bonds Series B Series A Bonds Authority Refunding
$21 $157,705
$2
$21 $157,705 2
$4,130
$7,788 $1,010 $3,101
7,788 4,130 1,010 3,101
$21 153,575
(7,788) (1,010) (3,099)
(7,788) 21 153,575 (1,010) (3,099)
$21 $157,705 $2
(Continued)
121
CITY OF BRISBANE
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET
JUNE 30, 2024
CAPITAL
DEBT SERVICE FUNDS PROJECT FUNDS
2022 Brisbane- 2023 BrisbaneGuadalupe Valley Guadalupe Valley Municipal Municipal
Improvement Improvement
District District 2018
Public Public Library
Financing Financing Construction Facilities
Authority Authority Loan Construction
ASSETS
Cash and investments $923,575 $3,835,989
Restricted cash and investments with fiscal agents $76,524 Interest receivable 19,063
Taxes receivable
$76,524 $923,575 $3,855,052
LIABILITIES
Accounts payable $129,260
Accrued payroll
Due to other funds $102,097
Deposits payable $11,018
Unearned revenue
Total Liabilities 102,097 129,260 11,018
FUND BALANCE
Restricted $76,524 794,315
Assigned 3,844,034
Unassigned (102,097)
Total Fund Balances (102,097) 76,524 794,315 3,844,034
Total Liabilities and Fund Balances $76,524 $923,575 $3,855,052 122
Total
Nonmajor
Park Governmental
South Hill Development Funds
$174,091 $1,914,589 $13,776,988
76,526
865 9,515 64,160
62,409
$174,956 $1,924,104 $13,980,083
$16,468 $171,290
12,129
113,996
55,915
527,901 527,901
544,369 881,231
7,815,686
$174,956 1,379,735 5,398,725
(115,559)
174,956 1,379,735 13,098,852
$174,956 $1,924,104 $13,980,083
CAPITAL PROJECT FUNDS
123
CITY OF BRISBANE
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2024
SPECIAL REVENUE FUNDS
Sierra Point
Gas Landscape
Tax Measure A Measure W & Lighting
GOVERNMENTAL REVENUES
Taxes and special assessments $238,278 $125,300 $795,153 Intergovernmental $137,876
Licenses, permits and fees
Use of money and property 28,414 32,502 12,444 59,024
Other revenues
Total Revenues 166,290 270,780 137,744 854,177
EXPENDITURES
Current:
General government
Public works 456,582
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 456,582
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 166,290 270,780 137,744 397,595
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (237,180) (223,550) (78,662)
Total Other Financing Sources (Uses) (237,180) (223,550) (78,662) NET CHANGES IN FUND BALANCES (70,890) 47,230 59,082 397,595 BEGINNING FUND BALANCES (DEFICITS) 479,952 521,642 193,663 1,125,627 ENDING FUND BALANCES (DEFICITS) $409,062 $568,872 $252,745 $1,523,222 124
SPECIAL REVENUE FUNDS
Traffic Fire Contract Public
Grants NPDES Congestion Relief Training Employees Arts
$61,252
$191,159
2,836
8,132 (10,698) $555 $172 $11,502 $119,178
133,505
199,291 53,390 555 172 11,502 252,683
26,483
558,713
558,713 26,483
199,291 (505,323) 555 172 11,502 226,200
516,556
(191,876)
(191,876) 516,556
7,415 11,233 555 172 11,502 226,200
63,041 (12,798) 11,079 3,446 230,159 2,334,919
$70,456 ($1,565) $11,634 $3,618 $241,661 $2,561,119
(Continued)
125
CITY OF BRISBANE
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2024
SPECIAL REVENUE FUNDS
SB1 Road
Habitat Maintenance
Tree Conservation and
Plant Program Rehabilitation ARPA
GOVERNMENTAL REVENUES
Taxes and special assessments
Intergovernmental $122,771
Licenses, permits and fees
Use of money and property $652 $2,330 9,217 $53,136
Other revenues
652 2,330 131,988 53,136
EXPENDITURES
Current:
General government
Public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 652 2,330 131,988 53,136
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (224,031)
Total Other Financing Sources (Uses) (224,031)
NET CHANGES IN FUND BALANCES 652 2,330 (92,043) 53,136
BEGINNING FUND BALANCES (DEFICITS) 13,031 1,818 106,721 1,063,217 ENDING FUND BALANCES (DEFICITS) $13,683 $4,148 $14,678 $1,116,353 126
DEBT SERVICE FUNDS
BrisbaneGuadalupe Valley 2017 BrisbaneMunicipal Guadalupe Valley Improvement Municipal
District Improvement
2006 Pension 2001 Revenue 2005 Revenue 2013 Pension Public District Obligation Bonds, Bonds, Side Fund Financing Lease
Bonds Series B Series A Bonds Authority Refunding
$1
1 255,000 $138,000
127,165 19,006
382,165 157,006
(382,164) (157,006)
382,166 157,006
382,166 157,006
2 ($7,788) $21 $153,575 ($1,010) (3,101)
($7,788) $21 $153,575 ($1,010) ($3,099)
(Continued)
127
CITY OF BRISBANE
NON-MAJOR GOVERNMENTAL FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2024
CAPITAL
PROJECT FUNDS
2022 Brisbane- 2023 BrisbaneGuadalupe Valley Guadalupe Valley Municipal Municipal
Improvement Improvement
District District 2018
Public Public Library
Financing Financing Construction Facilities
Authority Authority Loan Construction
GOVERNMENTAL REVENUES
Taxes and special assessments
Intergovernmental
Licenses, permits and fees
Use of money and property $226,424 $183,493
Other revenues
Total Revenues 226,424 183,493
EXPENDITURES
Current:
General government
Public works
Capital outlay
Debt service:
Principal $71,000 50,000 $117,640
Interest and fiscal charges 142,431 342,476 9,092
Total Expenditures 213,431 392,476 126,732
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (213,431) (166,052) (126,732) 183,493
OTHER FINANCING SOURCES (USES)
Transfers in 212,342 242,576
Transfers out
Total Other Financing Sources (Uses) 212,342 242,576
NET CHANGES IN FUND BALANCES (1,089) 76,524 (126,732) 183,493 BEGINNING FUND BALANCES (DEFICITS) (101,008) 921,047 3,660,541 ENDING FUND BALANCES (DEFICITS) ($102,097) $76,524 $794,315 $3,844,034
DEBT SERVICE FUNDS
128
Total
Nonmajor
Park Governmental
South Hill Development Funds
$1,219,983
451,806
2,836
$8,328 $92,419 837,225
133,505
8,328 92,419 2,645,355
26,483
1,015,295
39,233 39,233
631,640
640,170
39,233 2,352,821
8,328 53,186 292,534
1,510,646
(955,299)
555,347
8,328 53,186 847,881
166,628 1,326,549 12,250,971
$174,956 $1,379,735 $13,098,852
CAPITAL PROJECT FUNDS
129
CITY OF BRISBANE
BUDGETED NON-MAJOR FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
SPECIAL REVENUE FUNDS
GAS TAX MEASURE A
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
GOVERNMENTAL REVENUES
Taxes and special assessments $395,197 $238,278 ($156,919) Intergovernmental $120,983 $137,876 $16,893
Licenses, permits and fees
Use of money and property 28,414 28,414 32,502 32,502
Other revenues
Total Revenues 120,983 166,290 45,307 395,197 270,780 (124,417)
EXPENDITURES
Current:
General government
Public safety - police
Public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES 120,983 166,290 45,307 395,197 270,780 (124,417)
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out (237,180) (237,180) (223,550) (223,550)
Total Other Financing Sources (Uses) (237,180) (237,180) (223,550) (223,550) NET CHANGES IN FUND BALANCES $120,983 (70,890) ($191,873) $395,197 47,230 ($347,967) BEGINNING FUND BALANCES (DEFICITS) 479,952 521,642
ENDING FUND BALANCES (DEFICITS) $409,062 $568,872
130
SPECIAL REVENUE FUNDS
SIERRA POINT
MEASURE W LANDSCAPING & LIGHTING GRANTS
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $91,100 $125,300 $34,200 $590,000 $795,153 $205,153
$140,000 $191,159 $51,159
12,444 12,444 59,024 59,024 8,132 8,132
91,100 137,744 46,644 590,000 854,177 264,177 140,000 199,291 59,291 140,000 140,000
493,380 456,582 36,798
493,380 456,582 36,798 140,000 140,000
91,100 137,744 46,644 96,620 397,595 300,975 199,291 199,291 (78,662) (78,662) (191,876) (191,876)
(78,662) (78,662) (191,876) (191,876)
$91,100 59,082 ($32,018) $96,620 397,595 $300,975 7,415 $7,415 193,663 1,125,627 63,041
$252,745 $1,523,222 $70,456
(Continued)
131
CITY OF BRISBANE
BUDGETED NON-MAJOR FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
SPECIAL REVENUE FUNDS
NPDES
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
GOVERNMENTAL REVENUES
Taxes and special assessments $52,000 $61,252 $9,252
Intergovernmental
Licenses, permits and fees 2,000 2,836 836
Use of money and property (10,698) (10,698) $555 $555
Other revenues
Total Revenues 54,000 53,390 (610) 555 555
EXPENDITURES
Current:
General government
Public safety - police
Public works 446,580 558,713 (112,133)
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures 446,580 558,713 (112,133)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (392,580) (505,323) (112,743) 555 555
OTHER FINANCING SOURCES (USES)
Transfers in 392,581 516,556 123,975
Transfers out
Total Other Financing Sources (Uses) 392,581 516,556 123,975 NET CHANGE IN FUND BALANCES $1 11,233 $11,232 555 $555
BEGINNING FUND BALANCES (DEFICITS) (12,798) 11,079
ENDING FUND BALANCES (DEFICITS) ($1,565) $11,634
Congestion Relief
Traffic
132
SPECIAL REVENUE FUNDS
SB1 ROAD MAINTENANCE
PUBLIC ARTS FUND AND REHABILITATION ARPA
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $122,771 $122,771
$119,178 $119,178 9,217 9,217 $53,136 $53,136
133,505 133,505
252,683 252,683 131,988 131,988 53,136 53,136
26,483 (26,483)
26,483 (26,483)
226,200 226,200 131,988 131,988 53,136 53,136
(224,031) (224,031)
(224,031) (224,031)
226,200 $226,200 (92,043) ($92,043) 53,136 $53,136
2,334,919 106,721 1,063,217
$2,561,119 $14,678 $1,116,353
(Continued)
133
CITY OF BRISBANE
BUDGETED NON-MAJOR FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
2006 PENSION 2001 REVENUE
OBLIGATION BONDS BONDS, SERIES B
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
GOVERNMENTAL REVENUES
Taxes and special assessments
Intergovernmental
Licenses, permits and fees
Use of money and property
Other revenues
Total Revenues
EXPENDITURES
Current:
General government
Public safety - police
Public works
Capital outlay
Debt service:
Principal
Interest and fiscal charges
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
BEGINNING FUND BALANCES (DEFICITS) ($7,788) $21
ENDING FUND BALANCES (DEFICITS) ($7,788) $21
DEBT SERVICE FUNDS
134
DEBT SERVICE FUNDS
2005 REVENUE 2013 PENSION SIDE FUND
BONDS, SERIES A BONDS
Variance Variance Variance
Positive Positive Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $1 $1
11 $255,000 255,000
126,880 127,165 (285)
381,880 382,165 (285)
(381,880) (382,164) (284)
381,880 382,166 286
381,880 382,166 286
2$2
$153,575 ($1,010) (3,101)
$153,575 ($1,010) ($3,099)
(Continued)
AUTHORITY
PUBLIC FINANCING
BRISBANE-GUADALUPE VALLEY
MUNICIPAL IMPROVEMENT DISTRICT
135
CITY OF BRISBANE
BUDGETED NON-MAJOR FUNDS
COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL
FOR THE YEAR ENDED JUNE 30, 2024
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
GOVERNMENTAL REVENUES
Taxes and special assessments
Intergovernmental
Licenses, permits and fees
Use of money and property
Other revenues
Total Revenues
EXPENDITURES
Current:
General government
Public safety - police
Public works
Capital outlay
Debt service:
Principal $138,000 $138,000 $71,000 ($71,000)
Interest and fiscal charges 9,503 19,006 ($9,503) 142,431 (142,431) Total Expenditures 147,503 157,006 (9,503) 213,431 (213,431)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (147,503) (157,006) (9,503) (213,431) (213,431)
OTHER FINANCING SOURCES (USES)
Transfers in 147,503 157,006 9,503 212,342 212,342
Transfers out
Total Other Financing Sources (Uses) 147,503 157,006 9,503 212,342 212,342 NET CHANGE IN FUND BALANCES (1,089) ($1,089)
BEGINNING FUND BALANCES (DEFICITS) (101,008)
ENDING FUND BALANCES (DEFICITS) ($102,097)
MUNICIPAL IMPROVEMENT DISTRICT
PUBLIC FINANCING
AUTHORITY
DEBT SERVICE FUNDS
2017 BRISBANE-GUADALUPE VALLEY
MUNICIPAL IMPROVEMENT DISTRICT
PUBLIC FINANCING
AUTHORITY
2022 BRISBANE-GUADALUPE VALLEY
136
2018
LIBRARY
CONSTRUCTION
LOAN
Variance
Positive
Budget Actual (Negative)
$113,333 $117,640 ($4,307)
9,092 (9,092)
113,333 126,732 (13,399)
(113,333) (126,732) (13,399)
126,731 (126,731)
126,731 (126,731)
$13,398 (126,732) ($140,130)
921,047
$794,315
DEBT SERVICE FUNDS
137
This Page Left Intentionally Blank
INTERNAL SERVICE FUNDS
Internal Service Funds are used to finance and account for special activities and services performed by a designated department for other departments in the City on a cost reimbursement basis.
GASB Statement 34 requires that for the Statement of Activities, the net revenues or expenses of each internal service fund be eliminated by netting them against the operations of the other City departments which generated them. The remaining balance sheet items are consolidated with these same funds in the Statement of Net Position.
However, Internal Service Funds are still presented separately in the Fund financial statements, including the funds below.
Dental Self-Insurance Fund. The City self-insures its employee dental coverage; revenues are received from charges to operating departments based upon an agreed upon contribution per worker and reimbursements to employees for dental expenses are paid from this fund.
Fringe Benefits Fund. To account for the costs of unexpected benefit costs and other negotiated labor agreement provisions.
Flexible Benefits Fund. This fund receives revenue from employee cafeteria plans to pay for medical and childcare reimbursements as outlined in the 125 plan. At the end of each plan year the remaining funds become the property of the City.
General Liability Fund. The City self-insures a portion of each liability loss. Revenues are received from charges to operating departments based on payroll.
Workers' Compensation Fund. The City self-insures for a portion of Workers' Compensation.
Revenues are received from charges to operating departments based on payroll.
OPEB Fund. This fund was established to track retiree stipends and other post-employment benefits, however the OPEB liability is recorded only at the entity-wide level.
Vehicle Replacement Fund. This fund was established in April 2015 with the purpose of setting aside the replacement value of City-owned vehicles.
Facilities Maintenance. This fund was established to account for the expenditures for the maintenance and repairs of various city-owned facilities. Revenues in FY16 were received as part of a fiscal surplus. Future years will establish budgeted transfers to this fund in anticipation of planned maintenance and repairs.
139
CITY OF BRISBANE
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2024
Dental Fringe Flexible General
Self-Insurance Benefits Benefits Liability
ASSETS
Current Assets:
Cash and investments $13,600 $176,817 $14 $6,676
Restricted cash and investments
Accounts receivable, net 98,232 2,977
Interest receivable 68 879 (3,666)
Total Assets 13,668 275,928 2,991 3,010
LIABILITIES
Current Liabilities:
Accounts payable and accrued liabilities 11,831 321 2,894 Due to other funds 91,660 1,768 1,064,837
Accrued payroll 240,677
Accrued claims payable 10,802
Total Current Liabilities 103,491 240,998 4,662 1,075,639 Noncurrent Liabilities:
Accrued claims payable 26,062
Total Liabilities 103,491 240,998 4,662 1,101,701
NET POSITION (DEFICITS)
Unrestricted (89,823) 34,930 (1,671) (1,098,691)
Total Net Position (Deficits) ($89,823) $34,930 ($1,671) ($1,098,691) 140
Vehicle
Workers' OPEB Replacement Facilities
Compensation Fund Fund Maintenance Total
$35,489 $1,196,865 $833,096 $303,790 $2,566,347
128,744 128,744
1,510 102,719
3 5,948 2,268 5,500
164,236 1,202,813 835,364 305,300 2,803,310
16,632 132 31,810
35,905 1,194,170
4,863 245,540
441,560 452,362
463,055 36,037 1,923,882
1,135,440 1,161,502
1,598,495 36,037 3,085,384
(1,434,259) 1,202,813 799,327 305,300 (282,074)
($1,434,259) $1,202,813 $799,327 $305,300 ($282,074)
141
CITY OF BRISBANE
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES AND
CHANGES IN FUND NET POSITION
FOR THE YEAR ENDED JUNE 30, 2024
Dental Fringe Flexible General
Self-Insurance Benefits Benefits Liability
OPERATING REVENUES
Charges for sales and services $156,620 $943,118
Other revenue
Total Operating Revenues 156,620 943,118
OPERATING EXPENSES
Cost of sales and services
General and administrative 146,168 1,215,340
Other expenses
Total Operating Expenses 146,168 1,215,340
Operating Income (Loss) 10,452 (272,222)
NONOPERATING REVENUES (EXPENSES)
Investment earnings (309) $5,439 (50,084)
Total Nonoperating Revenues (Expenses) (309) 5,439 (50,084)
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENSES 10,143 5,439 (322,306)
Transfers in
Change in Net Position 10,143 5,439 (322,306)
BEGINNING NET POSITION (DEFICIT) (99,966) 29,491 ($1,671) (776,385) ENDING NET POSITION (DEFICIT) ($89,823) $34,930 ($1,671) ($1,098,691) 142
Vehicle
Workers' OPEB Replacement Facilities
Compensation Fund Fund Maintenance Total
$877,689 $520,500 $2,497,927
21,646 $2,336 23,982
899,335 520,500 2,336 2,521,909
33,583 33,583
755,927 $5,000 2,122,435
11,513 431,224 200,803 643,540
767,440 464,807 200,803 5,000 2,799,558
131,895 55,693 (198,467) (5,000) (277,649)
(14,595) 51,377 24,865 14,724 31,417
(14,595) 51,377 24,865 14,724 31,417
117,300 107,070 (173,602) 9,724 (246,232)
376,447 376,447
117,300 107,070 202,845 9,724 130,215
(1,551,559) 1,095,743 596,482 295,576 (412,289)
($1,434,259) $1,202,813 $799,327 $305,300 ($282,074)
143
CITY OF BRISBANE
INTERNAL SERVICE FUNDS
COMBINING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2024
Dental Fringe Flexible General
Self-Insurance Benefits Benefits Liability
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $156,620 $20,275 $943,118
Cash payments to suppliers (142,564) ($63) (1,216,237)
Cash Flows from Operating Activities 14,056 20,275 (63) (273,119)
CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES
Interfund receipts 318,791
Interfund payments (81)
Cash Flows from Noncapital Financing Activities (81) 318,791
CASH FLOWS FROM INVESTING ACTIVITIES
Interest paid (377) (48,440)
Interest income 5,239
Cash Flows from Investing Activities (377) 5,239 (48,440) Net Cash Flows 13,598 25,514 (63) (2,768)
Cash and investments at beginning of period 2 151,303 77 9,444 Cash and investments at end of period $13,600 $176,817 $14 $6,676 Reconciliation of operating income (loss) to
net cash flows from operating activities:
Operating income (loss) $10,452 ($272,222)
Adjustments to reconcile operating income to
net cash flows from operating activities:
Accounts receivable ($1,560)
Accounts payable and accrued liabilities 3,604 ($63)
Accrued payroll 21,835
Accrued claims payable (897)
Cash Flows from Operating Activities $14,056 $20,275 ($63) ($273,119) 144
Vehicle
Workers' OPEB Replacement Facilities
Compensation Fund Fund Maintenance Total
$899,335 $520,500 $2,336 $2,542,184
(845,991) (464,807) (200,691) ($5,190) (2,875,543)
53,344 55,693 (198,355) (5,190) (333,359)
(48,714) 398,562 668,639
(81)
(48,714) 398,562 668,558
(14,816) (63,633)
50,321 25,321 14,724 95,605
(14,816) 50,321 25,321 14,724 31,972
(10,186) 106,014 225,528 9,534 367,171
174,419 1,090,851 607,568 294,256 2,327,920
$164,233 $1,196,865 $833,096 $303,790 $2,695,091
$131,895 $55,693 ($198,467) ($5,000) ($277,649)
(190) (1,750)
(10,042) 112 (6,389)
(6,309) 15,526
(62,200) (63,097)
$53,344 $55,693 ($198,355) ($5,190) ($333,359)
145
This Page Left Intentionally Blank
CUSTODIAL FUNDS
CUSTODIAL FUNDS included the following funds:
Developer Deposits Fund
Other Custodial Funds
Northeast Ridge Assessment District 2013 Refunding Bonds Fund HCP Sierra Tower Development
Peninsula Corridor Electrification Project Fund
San Mateo County Training Consortium Fund
Orchard Partners Quarry Development Fund
100 Harold Road Improvements Fund
BDI 9000 Marina Fund
147
CITY OF BRISBANE
CUSTODIAL FUNDS
COMBINING STATEMENT OF NET POSITION
JUNE 30, 2024
Custodial Funds
Northeast Ridge
Developer Other Assessment District HCP
Deposits Custodial 2013 Refunding Sierra Tower
Fund Funds Bonds Fund Development
ASSETS
Cash and investments $9,079 $23,559 $270,718
Accounts receivable, net $88,811
Interest receivable 297 6
Total Assets 89,108 9,085 23,559 270,718
LIABILITIES
Accounts payable 2,142,864
Deposits payable 3,410,212 8,127 270,718
Total Liabilities 5,553,076 8,127 270,718
NET POSITION (DEFICIT)
Restricted for organizations and other governments ($5,463,968) $958 $23,559 148
Custodial Funds
Peninsula San Mateo Orchard
Corridor County Partners Quarry 100 Harold Road BDI 9000 Electrification Training Consortium Development Improvements Marina Project Fund Fund Fund Fund Fund Total
$28,116 $111,825 $640,322 $85,000 $1,168,619
3,850 92,661
140 443
28,256 115,675 640,322 85,000 1,261,723
25,145 $137,182 2,305,191
25,000 651,664 85,000 4,450,721
25,000 25,145 651,664 85,000 137,182 6,755,912
$3,256 $90,530 ($11,342) ($137,182) ($5,494,189)
149
CITY OF BRISBANE
COMBINING STATEMENT OF CHANGES IN NET POSITION
CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2024
Custodial Funds
Northeast Ridge
Developer Other Assessment District HCP
Deposits Custodial 2013 Refunding Sierra Tower
Fund Funds Bonds Fund Development
ADDITIONS
Investment income ($946)
Other revenue $104,900
Total additions 104,900 (946)
DEDUCTIONS
Professional services 1,980,172
Total deductions 1,980,172
CHANGES IN NET POSITION (1,875,272) (946)
(3,588,696) 1,904 $23,559
ENDING NET POSITION (DEFICIT) ($5,463,968) $958 $23,559
BEGINNING NET POSITION (DEFICIT)
150
Custodial Funds
Peninsula San Mateo Orchard
Corridor County Partners Quarry 100 Harold Road BDI 9000 Electrification Training Consortium Development Improvements Marina Project Fund Fund Fund Fund Fund Total
$1,345 $122,194 $122,593
104,900
1,345 122,194 227,493
91,660 $3,201 $137,182 2,212,215
91,660 3,201 137,182 2,212,215
1,345 30,534 (3,201) (137,182) (1,984,722)
1,911 59,996 (8,141) (3,509,467)
$3,256 $90,530 ($11,342) ($137,182) ($5,494,189)
151
This Page Left Intentionally Blank
INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the City Council
City of Brisbane, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the basic financial statements of the City of Brisbane (City), California, as of and for the year ended June 30, 2024, and have issued our report thereon dated July 6, 2026.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified.
However, as discussed below, we did identify certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies as listed on the Schedule of Material Weaknesses included as part of our separately issued Memorandum on Internal Control dated July 6, 2026 to be a material weakness, which is an integral part of our audit and should be read in conjunction with this report.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies as listed on the Schedule of Significant Deficiencies included as part of our separately issued Memorandum on Internal Control dated July 6, 2026 to be significant deficiencies, which is an integral part of our audit and should be read in conjunction with this report. 153
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
We have also issued a separate Memorandum on Internal Control dated July 6, 2026, which is an integral part of our audit and should be read in conjunction with this report.
City’s Response to Findings
Government Auditing Standards require the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in our separately issued Memorandum on Internal Control dated July 6, 2026, which is an integral part of our audit and should be read in conjunction with this report. The City’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Pleasant Hill, California
July 6, 2026
154
Contents Page
Financial Trends 157-163
Revenue Capacity 164-169
Debt Capacity 170-176
Demographic and Economic Information 177-174
Operating Information 174-185
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt, and the City’s ability to issue additional debt in the future.
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.
STATISTICAL INFORMATION
This part of the City of Brisbane’s annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the City’s overall financial health.
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax.
155
This Page Left Intentionally Blank
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Governmental activities
Invested in capital assets, net of related debt $47,358 $47,876 $44,304 $43,424 $50,918 $54,101 $55,504 $53,735 $53,119 $56,220Restricted 12,698 6,934 6,373 8,314 9,841 10,470 10,688 13,862 15,275 16,046Unrestricted (5,099) (3,507) 945 (3,630) (9,112) (12,721) (9,339) 12,570 (11,300) (14,493) Total governmental activities net position $54,957 $51,303 $51,622 $48,108 $51,647 $51,850 $56,853 $55,027 $57,094 $57,773Business-type activities Invested in capital assets, net of related debt $26,815 $28,599 $29,708 $28,342 $29,149 $27,898 $27,156 $27,057 $26,698 $26,351Restricted 2,251 2,251 759 759 759 758 759 759 759 759Unrestricted 2,092 (161) 170 3,936 3,423 5,194 5,733 4,138 3,636 2,026 Total business-type activities net position $31,158 $30,689 $30,637 $33,037 $33,331 $33,850 $33,648 $31,954 $31,093 $29,136Primary government Invested in capital assets, net of related debt $74,173 $76,475 $74,012 $71,766 $80,067 $81,999 $82,660 $80,792 $79,817 $82,571Restricted 14,949 9,185 7,132 9,073 10,600 11,228 11,447 14,621 16,034 16,805Unrestricted (3,007) (3,668) 1,115 305 (5,689) (7,527) (3,606) (8,432) (7,664) (12,467) Total primary government net position $86,115 $81,992 $82,259 $81,144 $84,978 $85,700 $90,501 $86,981 $88,187 $86,909 Fiscal Year Ended June 30,
CITY OF BRISBANE
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(Dollars in thousands)
$(20,000) $(40,000)
$-
$80,000 $60,000 $40,000 $20,000
$120,000 $100,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Net Investment in Capital Assets Restricted Unrestricted 157
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
ExpensesGovernmental Activities:
General Government $4,195 $5,357 $5,718 $7,446 $6,871 $9,780 $11,358 $8,694 $11,022 $12,589Public Safety - police 3,918 4,189 4,758 5,225 5,694 5,313 4,789 6,108 5,689 7,442Public Safety - fire 2,602 2,782 2,812 3,576 3,661 3,629 3,838 5,763 3,864 5,228Public Works 3,684 3,542 3,734 3,883 4,094 5,061 4,776 4,267 4,804 7,887Parks and Recreation 1,955 2,023 2,338 2,388 2,393 2,699 1,622 2,648 3,069 3,330 Interest on Long-Term Debt (Unallocated) 999 647 433 630 419 294 248 185 261 894 Total Governmental Activities Expenses 17,353 18,540 19,793 23,148 23,132 26,776 26,631 27,665 28,709 37,370 Business-Type Activities:
Utility 4,656 5,654 5,442 5,368 6,261 5,952 6,667 7,502 7,425 8,932Marina 1,623 1,808 1,940 1,662 1,621 1,715 1,317 1,647 1,646 2,155 Total Business-Type Activities Expenses 6,279 7,462 7,382 7,030 7,882 7,667 7,984 9,149 9,071 11,087 Total Primary Government Expenses $23,632 $26,002 $27,175 $30,178 $31,014 $34,443 $34,615 $36,814 $37,780 $48,457 Program RevenuesGovernmental Activities:
Charges for Services:
General Government $4,635 $5,226 $5,319 $6,517 $6,959 $8,070 $9,515 $8,339 $9,537 $9,667Public Safety - police 54 60 52 58 127 56 46 131 61 67 Public Safety - fire 179 275 315 714 499 463 1,453 1,063 587 541 Public Works 3,115 1,120 1,408 1,179 1,382 990 952 466 549 859 Parks and Recreation 526 571 597 588 667 483 317 666 809 924 Operating Grants and Contributions 117 158 209 342 624 332 1,055 1,214 1,373 5,797 Capital Grants and Contributions 930 352 152 238 88 225 507 - 27 - Total Government Activities Program Revenues 9,556 7,762 8,052 9,636 10,346 10,619 13,845 11,879 12,943 17,855 Business-Type Activities:
Charges for Services:
Utility 5,764 5,276 5,717 8,085 6,009 6,049 5,681 5,473 5,923 6,745Marina 1,529 1,652 1,705 2,206 2,099 2,293 2,339 2,303 2,318 2,305 Capital Grants and Contributions - - 456 - - - - - - -
Total Business-Type Activities Program Revenue 7,293 6,928 7,878 10,291 8,108 8,342 8,020 7,776 8,241 9,050 Total Primary Government Program Revenues $16,849 $14,690 $15,930 $19,927 $18,454 $18,961 $21,865 $19,655 $21,184 $26,905 Net (Expense)/RevenueGovernmental Activities ($7,797) ($10,778) ($11,741) ($13,512) ($12,786) ($16,157) ($12,786) ($15,786) ($15,766) ($19,515)Business-Type Activities 1,014 (534) 496 3,261 226 675 36 (1,373) (830) (2,037)Total Primary Government Net Expense ($6,783) ($11,312) ($11,245) ($10,251) ($12,560) ($15,482) ($12,750) ($17,159) ($16,596) ($21,552) (continued)
CITY OF BRISBANE
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Dollars in thousands)
Fiscal Year Ended June 30,
158
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Revenues and Other Changes
in Net Assets
Governmental Activities:
Taxes:
Property Taxes $3,162 $3,258 $3,342 $3,662 $4,372 $4,711 $5,513 $5,257 6,201 $ $6,624 Sales Taxes 3,333 3,843 4,408 4,678 5,609 6,640 7,652 5,792 6,406 7,488 Motor Vehicle In-Lieu - - - - - - - - - - Transient Occupancy Tax 2,447 2,786 2,768 2,886 2,890 2,072 850 1,653 2,151 2,114 Business License Tax - - - - - - - - - -
Other Taxes 909 1,056 1,423 1,118 2,243 1,713 1,626 1,635 2,383 2,047 Developer Contributions - - - - - - - - - - Interest Earnings - 182 100 106 704 356 288 (426) 494 1,758Miscellaneous - 48 14 23 422 756 1,730 33 172 130 Gain on sale of land held - - - - - - 131 - - -
Transfers, net 681 54 5 120 85 111 (2) 16 29 34
Extraordinary Item - - - - - - - - - -
Contribution from Successor Agency - - - - - - - - - -
Special Item: Gain on Early Retirement of Debt - - - - - - - - - - Special Item: Successor Agency Loan Write-off - (4,099) - - - - - - - - Total Government Activities 10,532 7,128 12,060 12,593 16,325 16,359 17,788 13,960 17,836 20,195Business-Type Activities:
Other Taxes 30 30 30 81 33 32 35 35 35 34Interest Earnings 51 88 (574) (387) 60 (135) (334) (401) (97) 61Miscellaneous - - - - - - - - - - Developer Contribution - - - - 60 60 60 60 60 20
Intergovernmental - - - - - - - - - - Transfers and Other (681) (54) (5) (120) (85) (111) 2 (16) (29) (34) Total Business-Type Activities (600) 64 (549) (426) 68 (154) (237) (322) (31) 81 Total Primary Government $9,932 $7,192 $11,511 $12,167 $16,393 $16,205 $17,551 $13,638 $17,805 $20,276Change in Net PositionGovernmental Activities $2,735 ($3,650) $319 ($919) $3,539 $202 $5,002 ($1,826) $2,070 $680Business-Type Activities 414 (470) (53) 2,835 294 521 (201) (1,695) (861) (1,956) Total Primary Government $3,149 ($4,120) $266 $1,916 $3,833 $723 $4,801 ($3,521) $1,209 ($1,276) Fiscal Year Ended June 30,
(continued)
CITY OF BRISBANE
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
(Dollars in thousands)
159
CITY OF BRISBANE
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(In thousands)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
General Fund
Nonspendable $3,291 $3,315 $2,594 $2,437 $1,818 $3,968 $3,844 $3,752 $3,584 $3,458Restricted - - 107 114 530 1,162 1,414 1,225 1,384 1,617Assigned 295 221 253 274 821 842 842 842 842 882Unassigned 8,957 7,745 8,702 8,628 7,949 6,465 11,436 9,382 9,714 18,039 Total General Fund $12,543 $11,281 $11,656 $11,453 $11,118 $12,437 $17,536 $15,201 $15,524 $23,996 All other governmental funds
Nonspendable $154 $80Restricted $9,658 3,965 3,861 $6,061 $6,725 $6,683 $6,777 $10,241 $11,699 $12,464Assigned 3,666 3,762 3,813 3,837 3,914 3,998 5,325 5,258 5,153 5,398 Unassigned (488) (561) (1,331) (1,609) (1,244) (4,708) (6,503) (6,525) (6,964) (14,567) Total all other governmental funds $12,836 $7,320 $6,423 $8,289 $9,395 $5,973 $5,599 $8,974 $9,888 $3,295Source: City of Brisbane Annual Comprehensive Financial Report Fiscal Year Ended June 30,
160
This Page Left Intentionally Blank
2015 2016 2017 2018
Revenues
Taxes and special assessments $11,258 $11,400 $12,069 $12,873 Intergovernmental 665 420 651 511
Licenses, permits, and fees 3,978 3,234 4,312 4,198
Charges for services 2,090 2,158 2,507 2,751
Fines and forfeitures 40 51 48 50
Use of money and property 255 269 156 175
Other revenues 1,390 735 552 1,190
Total Revenues 19,676 18,267 20,295 21,748
Expenditures
Current:
General government 3,780 4,472 4,647 5,534
Public safety-police 3,611 4,071 4,390 4,628
Public safety-fire 2,300 2,586 2,402 3,035
Public works 2,748 2,896 2,972 3,245
Parks and recreation 1,775 1,821 2,139 2,192
Library 28 28
Capital outlay 1,232 838 2,085 802
Debt service:
Principal repayment 6,938 2,546 1,036 1,147
Interest and fiscal charges 1,036 686 446 485
Total Expenditures 23,448 19,944 20,117 21,068
Excess (deficiency) of revenues over
(under) expenditures (3,772) (1,677) 178 680
Other Financing Sources (Uses)
Premium on refunding bonds issued 88 - - -
Proceeds from sale of property/assets 292 - - -
Proceeds from long-term debt 5,470 - - 3,330
Payment to refunded debt escrow agent - - - (1,738)
Inception of leases and SBITAs - - - -
Transfer in 7,800 2,369 2,131 2,112
Transfer out (8,740) (3,371) (2,831) (2,722)
Special item - (4,099) - -
Total other financing sources (uses) 4,910 (5,101) (700) 982 Net change in fund balances $1,138 ($6,778) ($522) $1,662 Debt service as a percentage of
noncapital expenditures 35.9% 16.9% 8.2% 8.1%
Fiscal Year Ended June 30,
CITY OF BRISBANE
Changes in Fund Balance of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
(In thousands)
162
2019 2020 2021 2022 2023 2024
$14,606 $15,261 $15,744 $14,685 $17,333 $18,326
919 1,229 1,626 1,154 789 6,096
6,623 5,810 6,988 5,643 7,521 6,993
3,662 3,132 3,461 3,380 3,620 4,098
66 43 31 110 51 56
855 508 352 (338) 597 1,843
974 838 3,307 1,216 1,399 570
27,705 26,821 31,509 25,850 31,310 37,982
5,823 7,299 7,728 8,487 10,271 12,111
4,917 4,991 4,804 5,287 5,899 6,978
3,357 3,535 3,829 4,517 4,260 5,046
3,637 3,758 3,848 4,082 3,939 4,198
2,200 2,504 1,622 2,455 2,869 3,129
- - - - - -
4,243 4,674 3,707 5,125 6,560 9,374
649 924 858 846 885 917
422 298 253 318 421 807
25,248 27,983 26,649 31,117 35,104 42,560
2,457 (1,162) 4,860 (5,266) (3,793) (4,578)
- - - - - -
- - 131 4,355 - -
- - - 2,200 - -
- - - - 5,545
- - - - - 6,800
5,331 2,087 2,418 2,451 1,907 2,466
(7,017) (3,028) (2,684) (2,699) (2,420) (2,808)
- - - - - -
(1,686) (941) (135) 6,307 5,032 6,458
$771 ($2,103) $4,725 $1,041 $1,239 $1,880
5.1% 5.2% 4.6% 4.2% 4.5% 4.8%
Fiscal Year Ended June 30,
163
Governmental Activities Tax Revenues by Source
Business
Fiscal Property Sales Gas Franchise Transfer TOT License Year Tax 1 Tax 2 Tax 3 Tax Tax Tax Tax Total
2015 $ 3,163 $ 3,333 $ 118 $ 531 $ 68 $ 2,447 $ 2,746 $ 12,406 2016 3,183 3,843 108 708 75 2,786 2,580 13,283
2017 3,294 4,597 97 737 48 2,768 3,135 14,676
2018 3,520 4,887 119 849 129 2,886 2,653 15,042
2019 5,001 5,841 187 874 208 2,890 4,995 19,995
2020 5,160 6,863 191 900 177 2,072 3,950 19,313
2021 5,433 7,935 192 863 66 850 4,582 19,919
2022 5,167 6,197 207 1,023 75 1,648 4,345 18,662
2023 6,128 6,793 235 1,149 58 2,151 5,715 22,229
2024 6,578 7,852 261 1,193 29 1,818 5,389 23,120
1 2 Sales tax includes Measure A sales tax, Measure W sales tax, Public Safety Sales Tax, General Sales Taxes and Sales Tax/Property Tax Swap 31 Gas Tax shown in ACFR as intergovernment, and Business License Tax as Licenses and Permits.
Source: City of Brisbane
Property Tax Includes Prior Taxes, Supplemental Taxes, Property Tax/VLF swap, ERAF and Property Tax from RDA (amounts expressed in thousands)
City of Brisbane
Last Ten Fiscal Years
(modified accrual basis of accounting)
164
This Page Left Intentionally Blank
City of Brisbane
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Taxable Total
Fiscal Less: Assessed Direct Tax
Year Secured Unsecured Exemptions Value Rate
2015 $ 1,516,681 $ 180,385 $ 10,908 $ 1,686,157 1.0991
2016 1,624,974 187,517 12,258 1,800,233 1.1080
2017 1,718,428 185,541 11,374 1,892,596 1.1282
2018 1,845,340 206,181 13,112 2,038,409 1.1276
2019 2,043,149 205,714 13,086 2,235,777 1.1126
2020 2,210,071 240,078 15,892 2,434,258 1.1267
2021 2,571,845 238,376 28,261 2,781,960 1.1543
2022 2,730,440 265,907 28,866 2,967,481 1.1190
2023 2,961,771 266,493 28,486 3,199,778 1.1102
2024 3,483,349 289,581 29,299 3,743,631 1.1330
Source: County Assessment Rolls
(amounts expressed in thousands)
City
Note: The General Property Tax Rate is established at $1.00 per $100.00 of assessed value per Article XIII of the California Constitution. The allocation of the property taxes to various taxing agencies including cities, counties, school districts and other special districts is based on the formula determined by the California State Legislature.
California property tax assessments are "acquisition" based, rather than cyclical based. In California, the property tax system is acquisition based, meaning that all real property is assessed upon acquisition or when newly constructed, and assessed at a ratio of 100% of fair market value as of the event date. After the acquisition or new construction basis is determined, year to year increases in assessed value are limited to no more than 2%. In the event of an economic downturn, real property is assessed at the lower of its acquisition basis, increased by the maximum of 2% per year or the fair market value as of January 1, which is lower. 166
City of Brisbane
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
Total
San Mateo Brisbane Jefferson Union San Mateo Direct &
Fiscal County as Elementay High School Community Overlapping Year Distributor School District District College Rates 2015 1.0000 0.0271 0.0530 0.0190 1.0991
2016 1.0000 0.0247 0.0583 0.0250 1.1080
2017 1.0000 0.0235 0.0800 0.0247 1.1282
2018 1.0000 0.0225 0.0816 0.0235 1.1276
2019 1.0000 0.0212 0.0739 0.0175 1.1126
2020 1.0000 0.0190 0.0811 0.0266 1.1267
2021 1.0000 0.0388 0.0942 0.0213 1.1543
2022 1.0000 0.0313 0.0650 0.0227 1.1190
2023 1.0000 0.0320 0.0589 0.0193 1.1102
2024 1.0000 0.0338 0.0802 0.0190 1.1330
Notes:
Source: California Municipal Statistics
School District
Under constitutional Amendment (Proposition 13) passed by voters in the State of California in June 1978, the tax rate (excluding bonded debt) is frozen at 1% of the full market value of the property. This tax is collected by the County Tax Collector and distributed on a formula determined by the State Legislature. Local agencies levy only the tax rate for general obligation bonds, or in excess of 1% if two-thirds of the voters in the area authorize such a rate increase.
All tax levies include Homeowner's Property Tax Relief and Business Inventory Property Tax Relief. 167
City of Brisbane
Principal Property Taxpayers
Current Year and Ten Years Ago
(amounts expressed in thousands)
% of Total % of Total
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value 1 Value Rank Value 2
Slough Brisbane LLC $ 1 18.04% 42,646 625,201 $ 5 2.81% HCP Life Science REIT Inc. 249,662 2 7.20%
DCT Valley Dr CA LLP 127,286 3 3.67% 60,318 2 3.98%
Oyster Point Properties Inc. 123,616 4 3.57% 104,914 1 6.92% BMR Bayshore Blvd LLC 121,128 5 3.50% 24,463 11 1.61%
BP3 SF5 3000 3500 Marina LLC 105,159 6 3.03%
PPF OFF 7000 Marina Blvd. LP 82,560 7 2.38%
IAC San Francisco LLC 68,878 8 1.99% 58,458 3 3.86%
M & L Associates 59,452 9 1.72%
AGL Hill Drive Owner LLC 49,800 10 1.44%
Summit Hospitality 114 LLC 46,342 11 1.34% 27,302 9 1.80% BP3 SF4 1000 Marina LLC 41,660 12 1.20%
Prologis USLV SUBREIT 4 LLC 30,349 13 0.88%
SNH Brisbane CA LLC 28,982 14 0.84%
BRE SH Brisbane Owner LLC 23,672 15 0.68% 20,091 12 1.33% Harrison 325 LP 19,456 16 0.56%
Valley 325 LP 19,317 17 0.56%
LYF Investment Group LLC 17,167 18 0.50%
Recology Properties Inc 16,709 19 0.48%
South Hill 99 LP 15,814 20 0.46%
2000 Sierra Point Parkway LLC 43,150 4 2.85%
William D. and C.A. Spencer Trust 40,630 6 2.68%
Diamond Marina LLC 7 2.03% 30,831
Fund VIII 1000 Marina LLC 27,400 8 1.81%
Marina Boulevard Property LLC 25,515 10 1.68%
SFPP 13 1.31% 19,883
Tuntex Properties Inc. 14 1.24% 18,733
Barulich Properties LLC 13,188 15 0.87%
WVP Bay Tech LLC 16 0.81% 12,205
Rolling Frito-Lay Sales 11,895 17 0.79%
AVJOG Investments LLC 9,939 18 0.66%
Sierra Hotel Management Corp 8,718 19 0.58%
Sierra Point Investors LLC 8,704 20 0.57%
Total 1,872,210 $ 54.03% 608,983 $ 40.19%
Source:
California Municipal Statistics
(1) 2023-2024 Local Secured Assessed Valuation: $ 3,465,228 (2) 2014-2015 Local Secured Assessed Valuation: $ 1,515,089 2024 2015
168
City of Brisbane
Property Tax Levies and Collections
Last Ten Fiscal Years
(amounts expressed in thousands)
Total Tax Collections in
Fiscal Levy for Subsequent
Year Fiscal Year Amount Percentage Years1 Amount Percentage 2015 2,838 $ 2,838 $ 100% n/a 2,838 $ 100%
2016 3,010 3,010 100% n/a 3,010 100%
2017 3,015 3,015 100% n/a 3,015 100%
2018 3,340 3,340 100% n/a 3,340 100%
2019 3,978 3,978 100% n/a 3,978 100%
2020 4,283 4,283 100% n/a 4,283 100%
2021 5,532 5,532 100% n/a 5,532 100%
2022 5,277 5,277 100% n/a 5,277 100%
2023 6,221 6,221 100% n/a 6,221 100%
2024 6,640 6,640 100% n/a 6,640 100%
1 Teeter Plan
Source: City of Brisbane
Collected within the
Fiscal Year of the Levy1 Total Collections to Date
Property Tax Includes Prior Taxes, Supplemental Taxes, Property Tax/VLF swap, ERAF and Property Tax from RDA 169
City of Brisbane
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount) Lease & Other Utility Total Percentage
Fiscal Revenue SBITA Long-Term Revenue Capital Primary of Personal Per Year Bonds Liability Debt Bonds Leases Government Income Capita 2015 9,274$ -$ 3,581$ $ 12,484 $ 25,339 - $ n/a 5,529 $ 2016 7,230 - 3,021 12,314 - 22,565 n/a 4,847
2017 6,815 - 2,406 11,890 - 21,111 n/a 4,523
2018 6,420 - 3,466 11,266 83 21,234 n/a 4,529
2019 6,089 - 3,172 10,254 57 19,571 n/a 4,172
2020 5,700 - 2,615 9,881 30 18,226 n/a 3,757
2021 5,266 - 2,160 9,130 2 16,558 n/a 3,469
2022 4,901 - 6,032 8,340 - 19,273 n/a 4,117
2023 4,525 - 5,523 7,523 - 17,571 n/a 3,746
2024 8,745 9,553 6,043 6,678 - 31,019 n/a 6,631
Note:
Governmental Activities Business-Type Activities
Personal Income is for San Mateo County because City information is not available. As such, calculating a percentage would not be valuable for Brisbane trend data.
Details regarding the City's outstanding debt can be found in the notes to the financial statements.
170
Ratios of General Bonded Debt Outstanding
Gross Less: Amounts Percent of
Fiscal Bonded Available in Debt Assessed Per
Year Debt Service Fund Total Value1 Capita
2015 $ 11,084 2 $ 307 $ 10,777 0.64% 2351.62%
2016 10,139 236 9,903 0.55% 2127.39%
2017 9,124 220 8,904 0.47% 1907.53%
2018 9,729 12 9,717 0.48% 2072.25%
2019 9,101 0 9,101 0.41% 1940.08%
2020 8,198 0 8,198 0.34% 1690.03%
2021 7,362 0 7,362 0.26% 1542.42%
2022 6,773 0 6,773 0.23% 1446.91%
2023 10,013 0 10,013 0.31% 2134.96%
2024 14,045 4,192 9,853 0.26% 2106.20%
General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). 2 Restated
(amounts expressed in thousands, except per capita amount) City of Brisbane
Last Ten Fiscal Years
1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California
171
Direct and Overlapping Governmental Activities Debt
2023-24 Assessed Valuation: $3,755,207
Estimated
Estimated Share of
Debt Percentage Overlapping
Outstanding Applicable Debt
Overlapping Tax and Assessment Debt:
San Mateo Community College District $ 682,237 1.220% $ 8,323 Jefferson Union High School District 338,312 12.946% 43,798 Bayshore School District 8,900 16.116% 1,434
Brisbane School District 29,056 64.257% 18,671
Total Gross Overlapping Tax and Assessment Debt 1,058,505 72,226 Direct and Overlapping General Fund Debt:
San Mateo County General Fund Obligations $ 554,572 1.220% $ 6,766 San Mateo County Board of Education Certificates of Participation 5,735 1.220% 70 Jefferson Union High School District General Fund Obligations 46,845 12.946% 6,065 City of Brisbane General Fund Obligations 13,751 100.000% 13,751 San Mateo County Mosquito and Vector Control District General Fund Obligations 3,405 1.220% 42 Total Direct and Overlapping General Fund Debt 624,308 $ 26,694 Overlapping Tax Increment Debt (Successor Agency):
Tax Allocation Bonds $ 3,535 100.000% $ 3,535
$ 3,535
Total Direct Debt $ 13,751
Total Overlapping Debt $ 88,703
Combined Total Debt $ 102,455 1
Source: California Municipal Statistics
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of the City of Brisbane. This process recognizes that, when considering the government's ability to issue and repay long-term debt, the entire debt burden borne by residents and businesses should be taken into account.
However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
City of Brisbane
As of June 30, 2024
(amounts expressed in thousands)
1 Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. 172
This Page Left Intentionally Blank
City of Brisbane
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
2015 2016 2017 2018 2019
Debt Limit 63,551 $ 67,829 $ 71,289 $ 76,534 $ 84,756 $ Total net debt applicable to limit 10,777 9,903 8,904 9,717 9,101 Legal debt margin $ 52,774 $ 57,926 $ 62,384 $ 66,817 $ 75,655 Total net debt applicable to the limit
as a percentage of debt limit 16.96% 14.60% 12.49% 12.70% 10.74% Legal Debt Margin Calculation for Fiscal Year 2021:
Assessed value1 1,808,762 1,694,694 1,901,034 2,040,900 2,260,160 Add back: exempt real property1 - - - - -
Total assessed value1 1,808,762 1,694,694 1,901,034 2,040,900 2,260,160 Debt limit (3.75% of total assessed value) 63,551 67,829 71,289 76,534 84,756 Debt applicable to limit:
General bonded debt 11,084 10,139 9,124 9,729 9,101
Less: Amount set aside for repayment of
general bonded debt 307 236 220 12 -
Total net debt applicable to limit 10,777 9,903 8,904 9,717 9,101 Legal debt margin 52,774 57,926 62,384 66,817 75,655
Note: Under state finance law, the City of Brisbane'
outstanding debt should not exceed 3.75 percent of total assessed property value. By law, the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.
1 Source: California Municipal Statistics Inc
City of Brisbane has no general obligation bonds.
Assessed Value excludes incremental assessed valuation
applicable to the Brisbane Community Redevelopment
Fiscal Year Ending
174
2020 2021 2022 2023 2024
$ 91,492 $ 104,530 $ 111,432 $ 120,158 $ 140,820
8,198 7,362 6,773 10,013 9,853
$ 83,294 $ 97,168 $ 104,659 $ 110,145 $ 130,967
8.96% 7.04% 6.08% 8.33% 7.00%
2,439,789 2,787,459 2,971,524 3,204,226 3,755,207
- - - - -
2,439,789 2,787,459 2,971,524 3,204,226 3,755,207
91,492 104,530 111,432 120,158 140,820
8,198 7,362 6,773 10,013 14,045
- - - - 4,192
8,198 7,362 6,773 10,013 9,853
83,294 97,168 104,659 110,145 130,967
Fiscal Year Ending
175
City of Brisbane
Pledged Revenue Coverage
Last Ten Fiscal Years
(amounts expressed in thousands)
Less: Net
Gross Operating Available Coverage
Fiscal Year Revenues Expenses Revenue Principal Interest Total % 2014-2015 $ 5,539 $ 3,886 $ 1,653 $ - -$ -$
2015-2016 5,353 4,590 763 170 241 411 185.75%
2016-2017 5,754 4,832 921 305 319 624 147.57%
2017-2018 8,202 4,765 3,437 310 310 620 554.48%
2018-2019 6,329 5,367 963 320 296 616 156.34%
2019-2020 6,280 5,354 926 340 273 613 151.02%
2020-2021 6,468 7,004 (535) 360 262 622 -86.14%
2021-2022 6,185 7,823 (1,638) 385 243 628 -260.80%
2022-2023 6,813 6,555 258 400 223 623 41.41%
2023-2024 6,970 8,470 (1,500) 415 203 618 -242.75%
Less: Net
Gross Operating Available Coverage
Fiscal Year Revenues Expenses Revenue Principal Interest Total % 2014-2015 $ 1,546 $ 1,488 $ 58 $ - -$ -$
2015-2016 1,693 1,647 46 - 118 118 38.99%
2016-2017 1,699 1,798 (99) 119 129 248 -39.93%
2017-2018 2,214 1,522 692 314 124 438 157.90%
2018-2019 2,148 1,390 758 346 114 460 164.78%
2019-2020 2,333 1,598 735 379 102 481 152.70%
2020-2021 2,353 1,421 932 391 91 482 193.37%
2021-2022 2,277 1,714 563 405 79 484 116.44%
2022-2023 2,373 1,796 577 417 66 483 119.46%
2023-2024 2,441 2,102 339 430 53 483 70.17%
Debt Service Requirements
Utility Revenue Bonds
Installment Sales Agreement
Debt Service Requirements
176
Demographic and Economic Statistics
Per
Personal Capita
Fiscal Income Personal Labor Unemployment
Year Population 3 (in millions) 2 Income 2 Force 1 Rate 1 2015 4,583 $ 74,641 $ 97,553 434,700 3.4%
2016 4,655 82,046 106,615 442,100 3.0%
2017 4,668 87,486 113,410 444,600 2.7%
2018 4,689 n/a n/a 454,900 2.2%
2019 4,691 n/a n/a 464,300 2.2%
2020 4,851 4 n/a n/a 460,000 2.0%
2021 4,773 n/a n/a 442,200 2.5%
2022 4,681 n/a n/a 457,000 4.3%
2023 4,690 n/a n/a 455,900 7.2%
2024 4,678 n/a n/a 435,800 8.2%
Notes: 1
2 3 Source: California Department of Finance Population Estimates; except where noted 4 Source: 2020 US. Census
City of Brisbane
Last Ten Fiscal Years
Source: State of California Employment Development Department, San Mateo County; previous years reflect annual averages
Source: California Labor Market Info for San Mateo County. Data not available for 2018 through 2024
177
City of Brisbane
Principal Employers
Current Year and Ten Years Ago
Percentage Percentage
of Total City of Total City
Employer Employees Rank Employment Employees Rank Employment Bi-Rite Foodservice Distributors 300 1 10.00% 259 4 3.61% LeeMAH Electronics 239 2 7.97%
Cutera Inc 209 3 6.97%
Expeditors Intl Inc 206 4 6.87% 223 8 3.11%
Sangamo Therapeutics 155 5 5.17%
Greenleaf 141 6 4.70%
Ultragenyx Pharmaceutical Inc 140 7 4.67%
Amazon Fresh 137 8 4.57%
Transdev Services Inc 137 9 4.57%
Norman S. Wright Mechanical Equipment Corporation 127 10 4.23% Pepsi Bottling Group 380 1 5.30%
Sunset Scavenger Co 350 2 4.88%
F.W. Spencer 325 3 4.54%
XOJet 250 5 3.49%
Caltronics Business Systems 243 6 3.39%
Monster Cable Products Inc 242 7 3.38%
Bebe 161 9 2.25%
Fong Brothers Printing 148 10 2.07%
Total Top 10 Employers 1,791 59.70% 2,581 36.02%
Total City Labor Force - 2023-2024 3 3,000
Total City Labor Force - 2014-2015 2 7,166
Source:
1 Avenu Insights & Analytics (City of Brisbane Business License process partner) Business License Data Report has been updated to reflect compliance with GASB No. 44.
Results based on direct correspondence with local businesses; reflect City of Brisbane locations only 2 City of Brisbane Business License data (self reporting); previous counts may be company-wide 3 Total City Labor Force provided by EDD Labor Force Data 2024 1 2015 2
178
This Page Left Intentionally Blank
Full-Time Equivalent City Government Employees by Function 2015 2016 2017 2018
Function:
General Government 12.05 12.55 12.55 12.55
Public safety:
Police 17.11 18.11 19.11 19.11
Fire 10.00 10.00 10.00 10.00
Public Works and Municipal Utilities 15.00 17.00 17.00 19.00 Community Development 5.40 5.40 5.00 5.00
Parks and Recreation 18.83 19.83 19.58 19.58
Marina 7.25 7.25 7.25 5.25
Total 85.64 90.14 90.49 90.49
Source: City of Brisbane Base Budget
City of Brisbane
Last Ten Fiscal Years
June 30
180
2019 2020 2021 2022 2023 2024
13.55 13.55 15.55 13.55 13.55 13.55
19.61 19.61 16.11 19.11 19.11 19.11
10.00 10.00 13.00 13.00 13.00 13.00
20.00 20.00 22.00 22.00 22.00 22.00
5.00 5.00 6.00 6.00 6.00 6.00
19.58 15.30 15.30 20.58 20.58 20.58
3.50 3.50 3.50 3.50 3.50 3.50
91.24 86.96 91.46 97.74 97.74 97.74
June 30
181
Operating Indicators by Function
2015 2016 2017 2018
Function
Police
Response time to :
Extreme Emergencies 4:33 4:31 5:02 4:36
Emergencies 4:25 4:11 4:06 3:54
Non-Emergencies 6:06 5:18 6:16 6:07
Number of victims per 1,000 citizens or business 31 31 34 33 Fire
Number of calls answered 713 751 698 694
Number of inspections 382 378 413 502
Public Works:
Number of Building and Park Maintenance service requests received 166 146 168 173 Number of Graffiti on Public Property requests for service 12 7 6 7 Number of Sidewalk Maintenance/Trip Hazard service requests 14 14 25 29 Number of Street Tree service requests 38 70 42 54
Number of Street-Sign/Light/Traffic Signal service requests 82 94 97 80 Number of Weeds, Trash and Debris on Public Property service requests 66 78 93 111 Water
Total Water Purchased 279,815 ccf 257,414 ccf 294,756 ccf 334,217 ccf Number of main breaks and repairs 2010
Number of service breaks (public side of meter) and repairs 2332 Percentage of water samples that pass health standards 100 97 99 100 Percentage of water storage tanks cleaned and inspected 0 100 0 0 Percentage of reported broken water meters replaced 100 100 100 100 Percentage of backup emergency generators inspected and 100 100 100 100 tested at critical water facilities
Percentage of known water main valves exercised 44 28 20 10 Sewer
Average Daily sewage flow
(thousands of gallons) 346 379 475 426
Total annual sewage flow 168,651 ccf 185,044 ccf 231,544 ccf 207,825 ccf Number of public sewer main blocks/breaks 3433
Number of private lateral blocks/breaks that City responds to 25 15 4 4 Percentage of public sewer blockages cleared within:
4 hours 100 100 75 33
12 hours 100 100 75 33
Community Development:
Total permit valuation ($000) 16,811 22,222 12,066 199,996 Parks and Recreation:
Community/Special Events (Concerts in the Park, Festival of Lights, etc.) number of events 17 26 27 25
Sports Programs (e.g. basketball, softball): number of sports Youth 10 10 10 12
Adult 2211
Classes: (number of programs)
Adult 10 10 11 11
Youth 4777
Child Care programs (Average Enrollment):
Preschool 20 25 25 20
Afterschool 103 101 85 90
Day Camps (Average Enrollment)
Spring 35 36 32 32
Summer 50 44 46 42
Winter 24 29 31 20
Teen Programs (number of programs) 4335
Aquatic programs (Enrollment/attendance):
Summer swim lessons 551 514 518 704
Water aerobics 11 / day 13 / day 12 / day
Senior Center (Enrollment/attendance) 55 / week 46 / week 44 / week 45 / week Programs 6578
All programs
Rentals
Community Center 15 17 21 25
Mission Blue 37 26 16 14
Community Park 146 135 113 120
Fields 5 8 10 10
Notes: Indicators are not available for the general government function.
Fiscal Year
City of Brisbane
Last Ten Fiscal Years
182
2019 2020 2021 2022 2023 2024
4:43 4:02 4:05 3:38 4:01 4:22
3:58 3:54 3:55 3:51 3:58 4:08
6:21 5:50 5:07 5:15 5:18 5:26
30 35 33 38 35 38
660 529 559 615 660 611
419 371 248 514 381 658
165 230 151 219 298 337
9 7 10 13 83
21 38 25 15 32 50
76 77 46 64 71 112
91 109 81 79 71 115
70 70 72 118 143 137
323,917 ccf 310,127 ccf 303,604 ccf 298,906 ccf 258,323 ccf 297,752 ccf 46 132 5
52 426 11
100 100 100 100 100 100
100 0 100 0 0 0
100 100 100 100 100 100
100 100 100 100 100 100
35 22 27 12 3 24
430 397 326 381 441 449
209,917 ccf 193,548 ccf 159,165 ccf 185,721 ccf 215,284 ccf 219,485 ccf 11 420 0
14 6 2102 10
100 100 100 100 100 100
100 100 100 100 100 100
303,030 332,592 284,718 197,245 72,675 325,776
27 30 12 24 34 36
11 15 3 5 68
1 1 13 44
12 12 2 8 45
6 4 27 68
16 16 8 22 20 19
100 100 27 100 110 111
35 32 24 42 42 42
53 55 33 70 81 88
30 45 0 30 33 22
5 3 06 915
710 602 126 454 513 565
14 / day 9 / day 25/day 25/day 25 / day 25 / day
47 / week 50 / week en 8 days in fiscal y 45 / week 60 / week 75 / week 8 8 1 13 16 20
1 18 13 0 11 71 69
33 22 0 34 88 85
98 51 17 145 156 147
10 4 1 3 42
Fiscal Year
183
Capital Asset Statistics by Function
2015 2016 2017 2018
Function
Public Safety:
Police:
Stations 1 1 1 1
Patrol units 5 5 5 5
Fire:
Fire Stations 1 1 1 1
Fire Engines 3 3 3 3
Public Works:
Streets (miles) 23 23 23 23
Streetlights 791 791 791 659
Sanitary Sewers (linear feet) 80,712 80,712 80,712 82,020 Water Lines (linear feet) 132,830 132,830 132,830 132,830 Water Storage (million gallons) 2.9 2.9 2.9 2.9
Parks and Recreation:
Parks acreage 57.98 57.98 57.98 57.98
Parks 15 15 15 15
Swimming pools 1 1 1 1
Open Space acreage 1 184.68 184.68 184.68 184.68
Wetlands 127.75 127.75 127.75 127.75
1 Source: 2001 Brisbane Open Space Plan
Fiscal Year
Note: No capital asset indicators are available for the general government or community development functions.
City of Brisbane
Last Ten Fiscal Years
184
2019 2020 2021 2022 2023 2024
111111
555566
111111
444444
23 23 23 23 23 23
659 659 659 659 700 700
82,020 82,020 82,020 82,020 82,020 82,020
132,830 132,830 132,830 132,830 132,830 132,830
2.9 2.9 2.9 2.9 2.9 2.9
57.98 57.98 57.98 57.98 57.98 57.98
15 15 15 15 15 15
111111
184.68 184.68 184.68 184.68 184.68 184.68
127.75 127.75 127.75 127.75 127.75 127.75
Fiscal Year
185
This Page Left Intentionally Blank
CITY OF BRISBANE
MEMORANDUM ON INTERNAL CONTROL
FOR THE YEAR ENDED
JUNE 30, 2024
Attachment 2
This Page Left Intentionally Blank
CITY OF BRISBANE
MEMORANDUM ON INTERNAL CONTROL
For The Year Ended June 30, 2024
Table of Contents
Page
Memorandum on Internal Control ................................................................................................................... 1 Schedule of Material Weaknesses ........................................................................................................... 3 Schedule of Significant Deficiencies ....................................................................................................... 5 Schedule of Other Matters ....................................................................................................................... 9
Current Status of Prior Year Material Weaknesses ............................................................................... 15 Current Status of Prior Year Significant Deficiencies ........................................................................... 17 Current Status of Prior Year Other Matters ........................................................................................... 19
This Page Left Intentionally Blank
MEMORANDUM ON INTERNAL CONTROL
To the City Council of
the City of Brisbane, California
In planning and performing our audit of the basic financial statements of the City of Brisbane (City) as of and for the year ended June 30, 2024, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore material weaknesses or significant deficiencies may exist that were not identified. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error or fraud may occur and not be detected by such controls. However, as discussed below, we identified certain deficiencies in internal control that we consider to be material weaknesses and other deficiencies that we consider to be significant deficiencies.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected, on a timely basis. We consider the deficiencies in internal control included on the Schedule of Material Weaknesses to be material weaknesses.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
We consider the deficiencies in internal control included on the Schedule of Significant Deficiencies to be significant deficiencies.
Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we believe are opportunities for strengthening internal controls and operating efficiency.
Management’s written responses included in this report have not been subjected to the audit procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them.
Government Auditing Standards require the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying Schedule of Material Weaknesses, Schedule of Significant Deficiencies and Schedule of Other Matters. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
1
This communication is intended solely for the information and use of management, City Council, others within the organization, and agencies and pass-through entities requiring compliance with Government Auditing Standards, and is not intended to be and should not be used by anyone other than these specified parties.
Pleasant Hill, California
July 6, 2026
2
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF MATERIAL WEAKNESSES
2024-01: Timeliness of Preparation for Audit and Production of Financial Statements NOTE: This is a repeat finding from fiscal year ended June 30, 2023.
Criteria: Financial Statements should be issued in a timely manner in order to be in compliance with State and bond indenture requirements, as well as to be informative and useful. Best practices ensure there are adequate resources available to not only keep up with day-to-day-operations, but there should be sufficient resources to perform monthly and annual closes, and allow time for analysis of account balances and activities on a regular basis. Part of this is ensuring there are resources available to be utilized on short notice to fill gaps in key positions, especially with the Finance Department.
In order to be able to issue the City’s financial statements in a timely manner, Finance staff need to be prepared for the audit by closing the general ledger timely and preparing audit checklist items ahead of the audit time scheduled. Throughout the audit, staff should respond to the auditors’ requests and inquiries during the time scheduled as well as follow-up items throughout the process.
Condition: The Finance Department was not adequately prepared for the audit when scheduled. The trial balance was not provided until after the auditors were scheduled to perform the audit, and when provided, was missing several key elements such as capital assets, long-term debt entries, leases, pension, segment information and budgetary information. Throughout the audit process, there were significant delays in the City staff responding to requests, and ultimately, most information was not provided until March 2026.
Effect: The above conditions, as well as the conditions noted in the Schedule of Significant Deficiencies, delayed the completion of the year-end closing process, which increases the risk that errors or misstatements may go undetected by staff and corrections may not be made in a timely manner. Audit effort was substantially increased in response to the increased risks.
In addition, these conditions caused significant delays in the completion of the audit and issuance of the Basic Financial Statements, which adversely impacted the City’s credit rating.
Cause: The delay was due to staff constraints, the departure of a key Finance employee, Finance staff dedicated to assist enterprise department in their billing software implementation and the implementation of the City’s land permitting software, several family medical leave situations within the Finance Department, and issues with implementation of a budget system software update.
Recommendation: The City should analyze staff resources to determine what plans can or should be made to ensure that the financial data is processed properly and timely. In addition, the City must develop procedures to ensure that accounts are analyzed through the fiscal year (i.e. monthly closes), and after the year end, to ensure the general ledger is closed accurately and timely. The City’s staffing should allow for sufficient resources to be allocated to audit preparation and responsiveness.
Management’s Response: Staff agrees with the recommendation. The City has implemented a plan to complete all outstanding audits which includes temporary staffing reinforcements, a permanent part-time staff addition, re-evaluating areas that can be automated, additional cross-training, and using resources from other city departments that can add analytical and project support without losing financial integrity of the transactional records. Departmental functions have been re-assigned to enhance efficiencies while maintaining internal controls. Monthly and periodic review checklists have been reimplemented and will be reinforced with staff. Staff is in the process of replacing financial software applications that were not functioning as needed with more robust and vendor supported tools. 3
This Page Left Intentionally Blank
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF SIGNIFICANT DEFICIENCIES
2024-02: Timely Preparation and Review of Bank Reconciliations NOTE: This is a repeat finding from fiscal year ended June 30, 2023.
Criteria: Bank reconciliations are an important element of the City’s internal control structure. In order to be an effective control, bank reconciliations should be completed as soon as reasonably possible after each month-end, usually within 30 days, and subsequently reviewed for accuracy. Errors and unreconciled differences should be investigated and corrected immediately, so as to prevent additional errors and a decrease in efficiency.
Condition: During the fiscal year 2024 audit, we noted the following:
1. The February 2024 bank reconciliation for the City’s Operating Account was prepared and reviewed on July 3, 2024.
2. The June 2024 Bank Reconciliation for the City’s Payroll Account was prepared and reviewed on August 17, 2024.
3. The June 2024 Bank Reconciliation for the City’s Operating Account was prepared and reviewed on October 24, 2024.
Effect: Without the timely completion of bank and investment reconciliations, errors or unauthorized transactions in these accounts might not be detected and remedied in a timely manner.
Cause: The delay was due to staff constraints, inadequate software applications requiring staff’s additional attention, staff required to assist enterprise department in transactional and billing software implementation, and several family medical leave situations.
Recommendation: In order to maintain adequate internal controls and detect any errors, irregularities or unauthorized activity timely, City staff should make the preparation and review of monthly bank reconciliations a priority. Timeliness would be within 30-45 days of month end for both preparation and review. Adjustments should be posted to the general ledger as necessary so that financial reports generated from the accounting system are accurate and up to date.
Management’s Response: Staff agrees with the recommendation. The Finance Department will reinforce month-end-close checklists to ensure the timely preparation and review of all bank reconciliations going forward. Additional staffing resources will be pursued for future supervisory-level vacancies.
5
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF SIGNIFICANT DEFICIENCIES
2024-03: Timeliness of Journal Entries
NOTE: This is a repeat finding from fiscal year ended June 30, 2023.
Criteria: Journal entries should be prepared and reviewed in a timely manner for the period in which the entry is to be posted, in order to keep accounts up to date with the current information. In addition, to have a complete audit trail of the journal entry process, the dates of preparation and review should be documented for all journal entries.
Condition: We tested fourteen journal entries for proper controls including sufficient supporting documentation, appropriateness, segregation of duties between preparing, reviewing and posting, recording in proper period, and timeliness. Of the fourteen journal entries tested, six were posted significantly late (more than 45 days after activity).
Effect: When journal entries are not posted and reviewed timely, financial reporting throughout the year may not be accurate. In addition, errors or irregularities may not be detected timely.
Cause: The delay was due to staff constraints, inadequate budgeting software applications requiring staff’s additional attention, staff required to assist enterprise department in transactional and billing software implementation, , and several family medical leave situations.
Recommendation: In order to maintain adequate internal controls and detect any errors, irregularities or unauthorized activity timely, City staff should prepare, review and post journal entries timely – typically within 30-45 days of the occurrence necessitating the adjustments. Adjustments should be posted to the general ledger as necessary so that financial reports generated from the accounting system are accurate and up to date. Timeliness of posting journal entries would also facilitate being able to close the year-end books more accurately and sooner.
Management’s Response: Staff agrees with the recommendation. Finance is staffed adequately when all employees are present. The challenge for a small department in a full-service city is providing timely execution of duties while up to 50% of the staff positions were vacant for extended periods of time. This issue was further complicated by software application issues. Monthly and periodic review checklists have been reimplemented and will be reinforced with staff. The reimplementation of checklists, increased communication, cross-training and streamlining of operations will help with this situation. In addition, management will be identifying contingency backup plans at supervisory levels to bring in additional resources if similar situations arise in the future.
6
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF SIGNIFICANT DEFICIENCIES
2024-04: Timeliness with Single Audit Deadline
Criteria: Financial statement audits, as well as grant compliance audits, should be completed timely and within statutory deadlines. When the City receives federal awards, and meets the threshold requiring a Single Audit (for fiscal year ended June 30, 2024 the threshold was $750,000 in federally-funded expenditures), the deadline is nine months after year-end.
Condition: For fiscal year ended June 30, 2024, the City received federal awards including reimbursements from FEMA related to the infrastructure damages caused by severe storms in January of 2023. These awards caused the City to meet the threshold requiring a Single Audit, which is a grant compliance audit of the City’s federal awards, which was due March 31, 2025.
Effect: The City is not in compliance with the Single Audit guidelines. This could affect future grant application awards.
Cause: The City has been delayed in having its financial statement audit completed (see recommendations 2024-01, 02 and 03), and Finance staff have not had capacity to prepare documents necessary for the Single Audit.
Recommendation: We recommend Finance staff establish priorities and obtain resources to assist in preparation for the Single Audit, and put processes in place to ensure timeliness for any future grant compliance audits.
Management’s Response: Staff agrees with the recommendation and has established a project team from Finance and the City Manager’s Office to work with all departments to identify and monitor all federal, state, and local grants received by the City on an ongoing basis. This team is currently identifying all grants by funding source for FY24 and, with the completion of the FY24 audit report, will prepare the Single Audit with an anticipated completion date in July 2026. 7
This Page Left Intentionally Blank
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE The following comment represents new pronouncements taking effect in the next few years. We cite them here to keep you informed of developments:
EFFECTIVE FISCAL YEAR 2024/25:
GASB 101 – Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.
Recognition And Measurement
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.
This Statement requires that a liability for certain types of compensated absences—including parental leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used.
This Statement also establishes guidance for measuring a liability for leave that has not been used, generally using an employee’s pay rate as of the date of the financial statements. A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities.
With respect to financial statements prepared using the current financial resources measurement focus, this Statement requires that expenditures be recognized for the amount that normally would be liquidated with expendable available financial resources.
Notes To Financial Statements
This Statement amends the existing requirement to disclose the gross increases and decreases in a liability for compensated absences to allow governments to disclose only the net change in the liability (as long as they identify it as a net change). In addition, governments are no longer required to disclose which governmental funds typically have been used to liquidate the liability for compensated absences.
9
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 101 – Compensated Absences (Continued)
How the Changes in this Statement Will Improve Financial Reporting The unified recognition and measurement model in this Statement will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. In addition, the model can be applied consistently to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave.
The model also will result in a more robust estimate of the amount of compensated absences that a government will pay or settle, which will enhance the relevance and reliability of information about the liability for compensated absences.
GASB 102 – Certain Risk Disclosures
SUMMARY
State and local governments face a variety of risks that could negatively affect the level of service they provide or their ability to meet obligations as they come due. Although governments are required to disclose information about their exposure to some of those risks, essential information about other risks that are prevalent among state and local governments is not routinely disclosed because it is not explicitly required.
The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints.
This Statement defines a concentration as a lack of diversity related to an aspect of a significant inflow of resources or outflow of resources. A constraint is a limitation imposed on a government by an external party or by formal action of the government’s highest level of decision-making authority. Concentrations and constraints may limit a government’s ability to acquire resources or control spending.
This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued.
If a government determines that those criteria for disclosure have been met for a concentration or constraint, it should disclose information in notes to financial statements in sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial impact. The disclosure should include descriptions of the following:
• The concentration or constraint
• Each event associated with the concentration or constraint that could cause a substantial impact if the event had occurred or had begun to occur prior to the issuance of the financial statements • Actions taken by the government prior to the issuance of the financial statements to mitigate the risk.
10
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 102 – Certain Risk Disclosures (Continued)
Effective Date and Transition
The requirements of this Statement are effective for fiscal years beginning after June 15, 2024, and all reporting periods thereafter. Earlier application is encouraged.
How the Changes in This Statement Will Improve Financial Reporting The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government’s financial condition.
How The Board Considered Costs And Benefits In The Development Of This Statement One of the principles guiding the Board’s setting of standards for accounting and financial reporting is the assessment of expected benefits and perceived costs. The Board strives to determine that its standards address significant user needs and that the costs incurred through the application of its standards, compared with possible alternatives, are justified when compared to the expected overall public benefit.
The Board believes that, in general, (1) the facts and circumstances related to concentrations or constraints and events that are addressed in this Statement already are known to governments and (2) the costs associated with the implementation of and continued compliance with this Statement are limited to governments’ judgments related to the disclosure criteria. The Board believes that the expected benefits that will result from the implementation of this Statement—essential information about risks that is understandable, reliable, relevant, timely, consistent, and comparable—are significant and justify the perceived costs of implementation and ongoing compliance.
11
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
EFFECTIVE FISCAL YEAR 2025/26:
GASB 103 - Financial Reporting Model Improvements
The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues.
Management’s Discussion and Analysis
This Statement continues the requirement that the basic financial statements be preceded by management’s discussion and analysis (MD&A), which is presented as required supplementary information (RSI). MD&A provides an objective and easily readable analysis of the government’s financial activities based on currently known facts, decisions, or conditions and presents comparisons between the current year and the prior year. This Statement requires that the information presented in MD&A be limited to the related topics discussed in five sections: (1) Overview of the Financial Statements, (2) Financial Summary, (3) Detailed Analyses, (4) Significant Capital Asset and Long-Term Financing Activity, and (5) Currently Known Facts, Decisions, or Conditions. Furthermore, this Statement stresses that the detailed analyses should explain why balances and results of operations changed rather than simply presenting the amounts or percentages by which they changed. This Statement emphasizes that the analysis provided in MD&A should avoid unnecessary duplication by not repeating explanations that may be relevant to multiple sections and that “boilerplate” discussions should be avoided by presenting only the most relevant information, focused on the primary government. In addition, this Statement continues the requirement that information included in MD&A distinguish between that of the primary government and its discretely presented component units.
Unusual or Infrequent Items
This Statement describes unusual or infrequent items as transactions and other events that are either unusual in nature or infrequent in occurrence. Furthermore, governments are required to display the inflows and outflows related to each unusual or infrequent item separately as the last presented flow(s) of resources prior to the net change in resource flows in the government-wide, governmental fund, and proprietary fund statements of resource flows.
Presentation of the Proprietary Fund Statement of Revenues, Expenses, and Changes in Fund Net Position This Statement requires that the proprietary fund statement of revenues, expenses, and changes in fund net position continue to distinguish between operating and nonoperating revenues and expenses. Operating revenues and expenses are defined as revenues and expenses other than nonoperating revenues and expenses. Nonoperating revenues and expenses are defined as (1) subsidies received and provided, (2) contributions to permanent and term endowments, (3) revenues and expenses related to financing, (4) resources from the disposal of capital assets and inventory, and (5) investment income and expenses.
12
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 103 - Financial Reporting Model Improvements (Continued) In addition to the subtotals currently required in a proprietary fund statement of revenues, expenses, and changes in fund net position, this Statement requires that a subtotal for operating income (loss) and noncapital subsidies be presented before reporting other nonoperating revenues and expenses. Subsidies are defined as (1) resources received from another party or fund (a) for which the proprietary fund does not provide goods and services to the other party or fund and (b) that directly or indirectly keep the proprietary fund’s current or future fees and charges lower than they would be otherwise, (2) resources provided to another party or fund (a) for which the other party or fund does not provide goods and services to the proprietary fund and (b) that are recoverable through the proprietary fund’s current or future pricing policies, and (3) all other transfers.
Major Component Unit Information
This Statement requires governments to present each major component unit separately in the reporting entity’s statement of net position and statement of activities if it does not reduce the readability of the statements. If the readability of those statements would be reduced, combining statements of major component units should be presented after the fund financial statements.
Budgetary Comparison Information
This Statement requires governments to present budgetary comparison information using a single method of communication—RSI. Governments also are required to present (1) variances between original and final budget amounts and (2) variances between final budget and actual amounts. An explanation of significant variances is required to be presented in notes to RSI.
Effective Date and Transition
The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter. Earlier application is encouraged.
How the Changes in This Statement Will Improve Financial Reporting The requirements for MD&A will improve the quality of the analysis of changes from the prior year, which will enhance the relevance of that information. They also will provide clarity regarding what information should be presented in MD&A.
The requirements for the separate presentation of unusual or infrequent items will provide clarity regarding which items should be reported separately from other inflows and outflows of resources.
The definitions of operating revenues and expenses and of nonoperating revenues and expenses will replace accounting policies that vary from government to government, thereby improving comparability.
The addition of a subtotal for operating income (loss) and noncapital subsidies will improve the relevance of information provided in the proprietary fund statement of revenues, expenses, and changes in fund net position.
The requirement for presentation of major component unit information will improve comparability.
13
MEMORANDUM ON INTERNAL CONTROL
SCHEDULE OF OTHER MATTERS
GASB 103 - Financial Reporting Model Improvements (Continued) The requirement that budgetary comparison information be presented as RSI will improve comparability, and the inclusion of the specified variances and the explanations of significant variances will provide more useful information for making decisions and assessing accountability.
How the Board Considered Costs and Benefits in the Development of This Statement One of the principles guiding the Board’s setting of standards for accounting and financial reporting is the assessment of expected benefits and perceived costs. The Board strives to determine that its standards address significant user needs and that the costs incurred through the application of its standards, compared with possible alternatives, are justified when compared to the expected overall public benefit. The Board believes that the expected benefits that will result from the implementation of this Statement—more comparable, consistent, relevant, reliable, and understandable information—are significant and justify the perceived costs of implementation and ongoing compliance.
Certain decisions made by the Board to not require additional information that some stakeholders requested are intended to mitigate the costs associated with implementing this Statement. For example, this Statement does not require presentation of a schedule of government-wide expenses by natural classification, nor does it include additional requirements for either the presentation or disclosure of debt service fund information or the presentation of a government-wide or governmental fund statement of cash flows. Furthermore, changes to the recognition of elements in and presentation of governmental fund financial statements were not included in this Statement because the desired benefit of conceptual consistency could not be achieved without a reduction in the value of the information provided in the statements. 14
MEMORANDUM ON INTERNAL CONTROL
CURRENT STATUS OF PRIOR YEAR MATERIAL WEAKNESSES
2023-01: Timeliness of Preparation for Audit and Production of Financial Statements Criteria: Financial Statements should be issued in a timely manner in order to be in compliance with State and bond indenture requirements, as well as to be informative and useful. Best practices ensure there are adequate resources available to not only keep up with day-to-day-operations, but there should be sufficient resources to perform monthly and annual closes, and allow time for analysis of account balances and activities on a regular basis. Part of this is ensuring there are resources available to be utilized on short notice to fill gaps in key positions, especially with the Finance Department.
In order to be able to issue the City’s financial statements in a timely manner, Finance staff need to be prepared for the audit by closing the general ledger timely and preparing audit checklist items ahead of the audit time scheduled. Throughout the audit, staff should respond to the auditors’ requests and inquiries during the time scheduled as well as follow-up items throughout the process.
Condition: The Finance Department was not adequately prepared for the audit when scheduled. The trial balance was not provided until after the auditors were scheduled to perform the audit, and when provided, was missing several key elements such as capital assets, leases, pension, segment information and budgetary information. Throughout the audit process, there were significant delays in the City staff responding to requests, and ultimately, the budget information necessary for the statements was not provided until September 2025.
Effect: The above conditions, as well as the conditions noted in the Schedule of Significant Deficiencies, delayed the completion of the year-end closing process, which increases the risk that errors or misstatements may go undetected by staff and corrections may not be made in a timely manner. Audit effort was substantially increased in response to the increased risks.
In addition, these conditions caused significant delays in the completion of the audit and issuance of the Basic Financial Statements, which adversely impacted the City’s credit rating.
Cause: The delay was due to staff constraints, two retirements, several family medical leave situations within the Finance Department, and issues with implementation of a budget system software update.
Recommendation: The City should analyze staff resources to determine what plans can or should be made to ensure that the financial data is processed properly and timely. In addition, the City must develop procedures to ensure that accounts are analyzed through the fiscal year (i.e. monthly closes), and after the year end, to ensure the general ledger is closed accurately and timely. The City’s staffing should allow for sufficient resources to be allocated to audit preparation and responsiveness.
Management’s Response: Staff agrees with the recommendation. The City has implemented a plan to complete all outstanding audits which includes temporary staffing reinforcements, a permanent part-time staff addition, re-evaluating areas that can be automated, additional cross-training, and using resources from other city departments that can add analytical and project support without losing financial integrity of the transactional records. Departmental functions have been re-assigned to enhance efficiencies while maintaining internal controls. Monthly and periodic review checklists have been reimplemented and will be reinforced with staff. Staff is in the process of replacing financial software applications that were not functioning as needed with more robust and vendor supported tools.
Current Status: See comment 2024-01.
15
This Page Left Intentionally Blank
MEMORANDUM ON INTERNAL CONTROL
CURRENT STATUS OF PRIOR YEAR SIGNIFICANT DEFICIENCIES
2023-02: Timely Preparation and Review of Bank Reconciliations Criteria: Bank reconciliations are an important element of the City’s internal control structure. In order to be an effective control, bank reconciliations should be completed as soon as reasonably possible after each month-end, usually within 30 days, and subsequently reviewed for accuracy. Errors and unreconciled differences should be investigated and corrected immediately, so as to prevent additional errors and a decrease in efficiency.
Condition: During the fiscal year 2023 audit, we noted the following:
1. The March 2023 Bank Reconciliation for the City’s Operating Account was prepared on October 10, 2023, and reviewed on October 12, 2023.
2. The June 2023 Bank Reconciliation for City’s Payroll Account was prepared on August 1, 2023, but not reviewed until August 26, 2023.
3. The June 2023 Bank Reconciliation for the City’s Operating Account was prepared on October 10, 2023, and reviewed on October 12, 2023.
Effect: Without the timely completion of bank and investment reconciliations, errors or unauthorized transactions in these accounts might not be detected and remedied in a timely manner.
Cause: The delay was due to staff constraints, two retirements and several family medical leave situations.
Recommendation: In order to maintain adequate internal controls and detect any errors, irregularities or unauthorized activity timely, City staff should make the preparation and review of monthly bank reconciliations a priority. Timeliness would be within 30-45 days of month end for both preparation and review. Adjustments should be posted to the general ledger as necessary so that financial reports generated from the accounting system are accurate and up to date.
Management’s Response: Staff agrees with the recommendation. The Finance Department will reinforce month-end-close checklists to ensure the timely preparation and review of all bank reconciliations going forward. Additional staffing resources will be pursued for future supervisory-level vacancies.
Current Status: See comment 2024-02.
17
MEMORANDUM ON INTERNAL CONTROL
CURRENT STATUS OF PRIOR YEAR SIGNIFICANT DEFICIENCIES
2023-03: Timeliness of Journal Entries
Criteria: Journal Entries should be prepared and reviewed in a timely manner for the period in which the entry is to be posted, in order to keep accounts up to date with the current information. In addition, to have a complete audit trail of the journal entry process, the dates of preparation and review should be documented for all journal entries.
Condition: We tested eleven journal entries for proper controls including sufficient supporting documentation, appropriateness, segregation of duties between preparing, reviewing and posting, recording in proper period, and timeliness. Of the eleven journal entries tested, two were posted significantly late (3- 6 months after activity).
Effect: When journal entries are not posted and reviewed timely, financial reporting throughout the year may not be accurate. In addition, errors or irregularities may not be detected timely.
Cause: The delay was due to staff constraints, two retirements, and several family medical leave situations.
Recommendation: In order to maintain adequate internal controls and detect any errors, irregularities or unauthorized activity timely, City staff should prepare, review and post journal entries timely – typically within 30-45 days of the occurrence necessitating the adjustments. Adjustments should be posted to the general ledger as necessary so that financial reports generated from the accounting system are accurate and up to date. Timeliness of posting journal entries would also facilitate being able to close the year-end books more accurately and sooner.
Management’s Response: Staff agrees with the recommendation. Finance is staffed adequately when all employees are present. The challenge for a small department in a full-service city is providing timely execution of duties while up to 50% of the staff positions were vacant for extended periods of time. This issue was further complicated by software application issues. Monthly and periodic review checklists have been reimplemented and will be reinforced with staff. The reimplementation of checklists, increased communication, cross-training and streamlining of operations will help with this situation. In addition, management will be identifying contingency backup plans at supervisory levels to bring in additional resources if similar situations arise in the future.
Current Status: See comment 2024-03.
18
MEMORANDUM ON INTERNAL CONTROL
CURRENT STATUS OF PRIOR YEAR OTHER MATTERS
2023-04: Capital Assets Detail Records
Criteria: City staff should maintain capital asset and construction in progress (CIP) detailed records that should be updated regularly for new acquisitions and project costs, and reviewed for any costs that should be written off (i.e. retirements or costs previously included in CIP that have been determined not to be capitalizable).
Condition: The capital assets and CIP reports initially provided for the audit were not properly updated.
Beginning balances of CIP did not tie to the prior year audited financial statements, and the detail included CIP costs recorded in previous years that were not capitalizable.
Effect: When capital asset records are not updated regularly, there is a higher risk that expenditures may be over- or under- stated and may require more time to reconcile at year-end.
Cause: Although the City has adopted procedures for updating and reconciling fixed asset schedules and currently meets with departments to review the status of projects on a quarterly basis, the procedures were not followed, and data was not updated and reconciled on a timely basis.
Recommendation: The Finance Department should re-train staff on the fixed asset accounting procedures and review accounts and update the capital asset and CIP records regularly. More frequent updates will reduce time at year-end close when workload is high, ensure all capitalizable costs are captured, and that the accounts are materially correct.
Management’s Response: Staff agrees with the recommendation. Although annual reviews are common in municipalities as part of the year-end close, the City will consider implementing a mid-year fixed asset activity progress review, including updating the fixed asset module with to-date acquisitions and disposals.
In addition, the new Financial Services Manager and the Accounting Systems Analyst will be trained on the fixed asset procedures. Finally, for year-end reconciliation, the Tyler Incode software is lacking in its ability to easily provide depreciation by fund/department, government function and asset type activity, as required for disclosure purposes in the annual report. To streamline the amount of staff time required for this disclosure, Finance will be assessing a modification to the software to automate the production of this information on a timely basis.
Current Status: The City continues to work on streamlining the process and assessing modifications to the software.
19
This Page Left Intentionally Blank
CITY OF BRISBANE
SINGLE AUDIT REPORT
FOR THE YEAR ENDED JUNE 30, 2024
Attachment 3
This Page Left Intentionally Blank
CITY OF BRISBANE
SINGLE AUDIT REPORT
For The Year Ended June 30, 2024
TABLE OF CONTENTS
Page
Schedule of Findings and Questioned Costs .............................................................................. 1 Section I – Summary of Auditor’s Results ......................................................................... 1
Section II – Financial Statement Findings .......................................................................... 2 Section III – Federal Award Findings and Questioned Costs ............................................. 2 Schedule of Expenditures of Federal Awards ............................................................................ 3 Notes to Schedule of Expenditures of Federal Awards ............................................................. 5 Independent Auditor’s Report on Internal Control over Financial Reporting and Report on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................. 7 Independent Auditor's Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance ........ 9
This Page Left Intentionally Blank
CITY OF BRISBANE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For The Year Ended June 30, 2024
SECTION I – SUMMARY OF AUDITOR’S RESULTS
SECTION I—SUMMARY OF AUDITOR’S RESULTS
Financial Statements
Type of report the auditor issued on whether the financial statements audited were prepared in accordance with GAAP Unmodified Internal control over financial reporting:
• Material weakness(es) identified? X Yes No
• Significant deficiency(ies) identified? X Yes
None
Reported
Noncompliance material to financial statements noted? Yes X No Federal Awards
Internal control over major federal programs:
• Material weakness(es) identified? Yes X No
• Significant deficiency(ies) identified? Yes X
None
Reported
Type of auditor’s report issued on compliance for major federal programs: Unmodified
Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? Yes X No
Identification of major program(s):
Assistance
Listing
Number(s) Name of Federal Program or Cluster
97.036 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Dollar threshold used to distinguish between type A and type B programs: $750,000 Auditee qualified as low-risk auditee? Yes X No
1
SECTION II – FINANCIAL STATEMENT FINDINGS
Our audit disclosed significant deficiencies and material weaknesses, but no instances of noncompliance material to the basic financial statements, included as part of our separately issued Memorandum on Internal Control July 6, 2026, which is an integral part of our audits and should be read in conjunction with this report.
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Our audit did not disclose any findings or questioned costs required to be reported in accordance with Uniform Guidance.
2
CITY OF BRISBANE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Fiscal Year Ended June 30, 2024
Federal Pass-Through
Federal Grantor/ Assistance Listing Identifying Federal Pass-Through Grantor/Program or Cluster Title Number Number Expenditures U.S. Department of Homeland Security,
Pass-Through Programs From:
California Governor's Office of Emergency Services
Disaster Grants – Public Assistance
(Presidentially Declared Disasters) 97.036 FEMA-4683-DR-CA $1,897,183 Program Subtotal 1,897,183
Total U.S. Department of Homeland Security 1,897,183
Total Expenditures of Federal Awards $1,897,183
See Accompanying Notes to Schedule of Expenditures of Federal Awards 3
This Page Left Intentionally Blank
CITY OF BRISBANE
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For The Year Ended June 30, 2024
NOTE 1 – REPORTING ENTITY
The Schedule of Expenditure of Federal Awards (the Schedule) includes expenditures of federal awards for the City of Brisbane, California, and its component units as disclosed in the notes to the Basic Financial Statements.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements, regardless of the measurement focus applied. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Expenditures of Federal Awards reported on the Schedule are recognized when incurred.
NOTE 3 – INDIRECT COST ELECTION
The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
NOTE 4 – PRIOR YEAR EXPENDITURES
The Department of Homeland Security - Disaster Grants – Public Assistance (Presidentially Declared Disasters) (AL# 97.036) Program requires that expenditures under the program be reported on the Schedule when (1) the Federal Emergency Management Agency’s (FEMA) has approved the City’s project, and (2) the City has incurred the eligible expenditures. FEMA’s approval of a subaward is indicated when FEMA obligates the federal share of the eligible project cost. The City incurred expenditures related to the State of California’s severe winter storms, flooding, landslides, and mudslides that began on December 27, 2022.
The current year Schedule includes expenditures from the prior fiscal years in the amount of $551,294. 5
This Page Left Intentionally Blank
INDEPENDENT AUDITOR’S REPORT ON
INTERNAL CONTROL OVER FINANCIAL REPORTING
AND REPORT ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Members of the City Council
City of Brisbane, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Brisbane 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, and have issued our report thereon dated July 6, 2026.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we did identify certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies as listed on the Schedule of Material Weaknesses included as part of our separately issued Memorandum on Internal Control dated July 6, 2026 to be material weaknesses, which is an integral part of our audit and should be read in conjunction with this report.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies as listed on the Schedule of Significant Deficiencies included as part of our separately issued Memorandum on Internal Control dated July 6, 2026 to be significant deficiencies, which is an integral part of our audit and should be read in conjunction with this report. 7
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
City’s Response to Findings
Government Auditing Standards require the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in our separately issued Memorandum on Internal Control dated July 6, 2026, which is an integral part of our audit and should be read in conjunction with this report.
The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Pleasant Hill, California
July 6, 2026
8
INDEPENDENT AUDITOR'S REPORT
ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM;
REPORT ON INTERNAL CONTROL OVER COMPLIANCE;
AND REPORT ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Members of the City Council
City of Brisbane, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Brisbane’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2024. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying Schedule of Findings and Questioned Costs.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2024.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program.
Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s federal programs.
9
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. 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 GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, 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 City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 10
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining funds information of the City 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. We issued our report thereon dated July 6, 2026, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance 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 schedule of expenditures of federal awards is fairly stated, in all material respects in relation to the basic financial statements as a whole.
Pleasant Hill, California
July 6, 2026
11
This Page Left Intentionally Blank
City Council Staff Report
Meeting Date: July 16, 2026
From: Caroline Cheung, Assistant to the City Manager, Jeremy Dennis, City Manager
Subject: Consider Approval of 2026 Halloween Road Closures Recommendation
Staff recommend the City Council consider recommendations regarding this year’s Halloween road closures and provide approval or any further direction to staff.
Background
Last year, the City hosted its first Halloween event. The event was well received and staff has begun its planning efforts for this year’s event, which formally kicked off with staff’s presentation of an informational report on last year’s pilot road closures on Halloween.
In April’s report, over 80% of 86 survey respondents (with 57% of the respondents living within the closure area) thought the road closures contributed to a safer environment for trick-or-treaters and pedestrians, with strong support for continuing the program. Most respondents described their experience with the pilot program very positively, frequently mentioning increased safety for children and families and a more relaxed atmosphere. A few comments mentioned specific logistical issues, such as bottlenecks and heavy traffic on Alvarado, which was not closed and became congested. Survey responses from volunteers who helped monitor the 9 outer perimeter closure points mentioned that some seemed unaware that Alvarado and Visitacion were NOT closed.
Staff from Public Works, Police, and the City Manager’s Office met in June to discuss the community’s feedback and offer suggestions for improvements to this year’s event, which falls on Saturday, October 31, 2026.
Discussion
Fortunately, Brisbane Police Department received no calls for service during last year’s road closures between 6-8 PM. However, with Halloween falling on a Saturday this year, this is not anticipated to be the case, and officers would need to leave the event immediately if called to respond to an incident. With their assistance largely needed for the closure of San Bruno Avenue, it is being recommended that the footprint of the closure area be made slightly smaller, with San Bruno remaining open. The closure area would thus be scaled
back to only include the side streets between Visitacion and San Bruno – Mariposa, Monterey, Mendocino, and Klamath. Please see Attachment 1.
Other improvements/staff recommendations for this year include:
• Using larger “W-3” barricades at each of the 8 closure points vs. “W-2’s” or “sandwich boards”. This will allow the boundaries of the closure area to be clearer to both pedestrians and motorists. “W-2’s” would be used again, however, to close off each side of the mid-block alleyways.
• Setting up temporary lighting, especially near intersections where the streetlights may be dimmer.
• Placing recycling and trash toters at each of the 8 closure points to help keep the streets clear of debris.
• Communicating with rideshare services such as Waymo, Uber, and Lyft and food delivery services such as UberEATS, Grubhub, and DoorDash about the closure, as well as informing mapping services such as Google/Waze and Apple to indicate alternate routes during the closure period.
• Producing maps for the volunteers to hand out to visitors, showing areas where they can park and where a restroom facility is located at the Community Park. Large posters listing the overflow parking locations can also be placed at the top-most and bottom closure points.
• Engaging the Complete Streets Safety Committee to further plan and implement the closure.
Staff seeks input from the Council on this year’s Halloween event, based on staff’s recommendations above.
Fiscal Impact
Fiscal impacts will mostly be due to staff overtime costs with the event falling on a Saturday:
• Police overtime (11 hours or $1,221.84)
• Public Works overtime (12 hours or $1,694.26)
• Printed door hangers for residences within the closure area Attachments
1. 2026 Halloween Road Closures Map
City Manager Approval
Jeremy Dennis, City
Manager
07/10/2026
Halloween
Road Closures Road Closures
6-8 PM
Halloween
Mariposa
Monterey
Mendocino
Klamath
San Bruno
Visitacion
OPEN CLOSED
City Council Staff Report
Meeting Date: July 16, 2026
From: Carolina Yuen, Finance Director
Subject: Consider Adoption of Resolution submitting to the electors in the November 3, 2026 election a ballot measure to update the City’s Business License Tax by amending Sections of Title 5, Division I of the Brisbane Municipal Code; directing the City Attorney to prepare an impartial analysis; and authorizing the filing of arguments in favor of measure.
Recommendation
Adopt a resolution submitting to the electors in the November 3, 2026 election a ballot measure to update the City’s Business License Tax by amending Sections of Title 5, Division I of the Brisbane Municipal Code; directing the City Attorney to prepare an impartial analysis; and authorizing the filing of arguments in favor of measure.
Background
Brisbane Municipal Code Title 5, Division Code 1 imposes a gross receipts business license tax on any person within the City conducting business in the City.
During the review of the budget for Fiscal Year 2024-25, Council directed staff to review the City’s Business License Tax program to determine if the current methodology of applying the tax is consistent with best practice and Council goals. Staff engaged Hinderliter De Llamas & Associates (HdL) to conduct a business license tax study to review the City’s current business license portfolio, fee structure and methodologies, best practices and potential methods given the current and future business types allowed in Brisbane.
On April 16, 2026, City Council reviewed the study results and opted to pursue a single gross receipts tax structure. At the June 18, 2026 City Council Meeting, Council directed staff to prepare a ballot measure updating the relevant provisions of the Municipal Code.
The City’s business license tax is a general tax, meaning all revenues are deposited into the City’s General Fund and used for general purposes. Any general tax must be approved by a majority of the voters voting upon the proposed tax/increase at a regularly scheduled election at which members of the Brisbane City Council will be elected. The November 3, 2026 election is the next regularly scheduled statewide general election at which members of the Brisbane City Council will be elected.
Discussion
Procedural Issues
Usually, all general taxes must be approved by the voters. However, because Brisbane’s business license tax was in effect prior to 1986, the effective date of Proposition 62, the tax itself did not require voter approval. Any increases or extensions of the tax are subject to voter approval.
On June 18, 2026, City Council approved separating revisions to the City’s current tax, codified in BMC Title 5, Division 1 into two categories: 1) revisions increasing or extending the tax and thus requiring voter approval, and are thus the subject of the Ordinance staff recommends the Council place on the ballot at this meeting; and 2) procedural revisions that do not require voter approval and may be made by the City Council. If the ballot measure passes, staff will bring a “clean up” ordinance, including recommended procedural revisions, to Council later this year. Separating the revisions into two ordinances allows the City to streamline the revisions being presented to the voters.
Tonight’s action is to adopt a resolution placing an Ordinance amending sections of Title 5, Division I on the ballot. The Ordinance would revise the current tiered tax structure to a simpler structure: 1) businesses with gross receipts of $25,000 or less would pay $50; 2) most other businesses with gross receipts or cost of operations greater than $25,000 would pay $50 plus an additional $1.00 per every $1,000 of gross receipts over $25,000. The ordinance proposes establishing a minimum tax base equal to the cost of operations for businesses whose operating costs exceed gross receipts. The Ordinance would maintain existing exemptions, including for non-profits.
The resolution also sets forth the question that would appear on the ballot. It reads:
Shall the measure updating the City's Business License Tax by replacing the current tiered structure with a $50 tax for businesses with annual gross receipts of $25,000 or less and $50 plus $1.00 per $1,000 of gross receipts above $25,000 for most other businesses; establishing a minimum tax base equal to the cost of operations for businesses whose operating costs exceed gross receipts; and raising approximately $1,000,000 annually, until repealed by voters, be adopted?
YES
NO
Ballot Arguments
The resolution authorizes the City Council to prepare arguments in favor of the measure, and rebuttal arguments in response to potential arguments against the measure. Arguments in favor of the measure cannot exceed 300 words and must be submitted to the City Clerk by noon on August 7, 2026; rebuttals cannot exceed 250 words and are due by noon on August 14, 2026.
The resolution is drafted for the City Council to appoint a subcommittee to prepare the argument in favor and rebuttal argument. The two members prepare the argument, lodge it with the City Clerk, the Clerk then notifies other members of the Council, who may sign the argument. To comply with the Brown Act, other Councilmembers may not make any revisions to the argument. The same procedure would be used for the rebuttal argument.
If the Council places the measure on the ballot, the City Attorney will prepare an impartial analysis of the measure, explaining the effect of the measure on the existing law and the operation of the measure, and submit it to the City Clerk by August 17.
Because it is a tax measure, the resolution must pass by a 4/5 vote of the Council.
Fiscal Impact
The direct fiscal impact includes approximately $20,000 paid to San Mateo County in placing a measure on the November 2026 ballot as part of the general municipal election. The City Manager’s proposed operating budget for FY2026-27 reviewed by the City Council includes funding for the election.
If enacted, the amended Business License tax would generate approximately $1,000,000 annually for the City.
Compliance with CEQA
Revising the Business License Tax is not a “Project” as defined under section 15378(b)(4) of the California Environmental Quality Act (CEQA) Guidelines because it is a financing decision without commitment to a specific project that may result in a potentially significant physical impact on the environment; therefore, pursuant to section 15060(c)(3) of the State CEQA Guidelines, the action is not subject to CEQA.
Attachment
1 – Proposed Resolution 2026-XX
City Manager Approval
_________________________________________________________________________ Jeremy Dennis, City Manager
RESOLUTION NO. XXXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRISBANE
SUBMITTING TO THE ELECTORS IN THE NOVEMBER 3, 2026
ELECTION A BALLOT MEASURE TO UPDATE THE CITY’S BUSINESS LICENSE TAX BY AMENDING SECTIONS OF TITLE 5, DIVISION I OF THE BRISBANE MUNICIPAL CODE; DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS; AND AUTHORIZING THE
FILING OF ARGUMENTS IN FAVOR OF MEASURE
WHEREAS, by Resolution No. 2026-26, adopted on June 18, 2026, the City Council of the City of Brisbane called and gave notice of a General Municipal Election on Tuesday, November 3, 2026 to be consolidated with the election to be conducted by the County of San Mateo on the same date; and WHEREAS, the City of Brisbane enacted a Business License Tax in or around 1977; and
WHEREAS, the City Council held open and public meetings on June 18 and July 16, 2026 to receive public input and discuss revisions to its Business License Tax (“Tax”); and
WHEREAS, the Tax is codified in Title 5, Division I of the Brisbane Municipal Code; and
WHEREAS, the Tax is a general tax, as all revenues are deposited into the Brisbane General Fund and used for general services; and WHEREAS, Article XIII C, section 2(b) of the California Constitution requires that any general tax be approved by a majority vote of the voters voting on the issue; and WHEREAS, Article XIII C, section 2(b) of the California Constitution requires that an election by the voters to approve a general tax be consolidated with a statewide general election at which members of the City Council will be elected; and WHEREAS, November 3, 2026 is the date of the statewide general election at which members of the City Council will be elected; and
WHEREAS, the proposed revisions in this measure replace the tiered rate structure with a gross-receipts rate and modify the definition of “gross receipts,” in an effort to ensure the Business License Tax is applied in as equitable a manner as possible; and
WHEREAS, the City Council believes that it is in the best interests of the City to submit the proposed revisions to the Business License Tax to the voters of City.
Resolution No. XXXX
4902-5388-0762 v1
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Brisbane that the City of Brisbane orders as follows:
Section 1. Ballot Language. The ballot question for the proposed measure shall be as follows:
Shall the measure updating the City's Business License
Tax by replacing the current tiered structure with a $50 tax for businesses with annual gross receipts of $25,000 or less and $50 plus $1.00 per $1,000 of gross receipts above $25,000 for most other businesses; establishing a minimum tax base equal to the cost of operations for
businesses whose operating costs exceed gross
receipts; and raising approximately $1,000,000 annually, until repealed by voters, be adopted?
YES
NO
Section 2. Approval of Ordinance and Placement of Ordinance on Ballot.
Pursuant to Elections Code section 9222, the City Council of the City of Brisbane hereby approves the ballot language, and the Ordinance attached hereto as Attachment A, to be placed on the ballot and submitted to the voters of the City at the November 3, 2026 election.
Section 3. Publication of Measure. The City Clerk is hereby directed to cause notice of the measure to be published in accordance with Section 12111 of the California Elections Code.
Section 4. Request to Consolidate and Conduct Election and Canvass Returns. (a) Pursuant to California Elections Code Section 10400 et seq., the election for this measure shall be consolidated with the election to be conducted on November 3, 2026. The City Council hereby requests that the San Mateo Board of Supervisors consolidate the election called by this Resolution with the City’s General Municipal election and statewide election to be conducted on November 3, 2026 and order the election to be conducted by the Chief Elections Officer & Assessor-County ClerkRecorder. The City Council of the City of Brisbane acknowledges that the consolidated election will be held and conducted in the manner prescribed in Elections Code Section 10418. The City Council recognizes that additional cost will be incurred by the County of San Mateo by reason of the consolidation of the election with the Statewide election and agrees to reimburse the County of San Mateo for any costs that are not reimbursed by the State, and the City Council hereby authorizes the City Manager to pay the County of San Mateo for said services in full. The City Clerk is directed to file a certified copy of this Resolution with the Board of Supervisors of San Mateo and the Chief Elections Officer & Assessor-County Clerk-Recorder of
Resolution No. XXXX
4902-5388-0762 v1
San Mateo County on or before August 7, 2026.
(b) The election on the measure set forth herein shall be held and conducted, the voters canvassed and the returns made, and the results ascertained and determined as provided herein. The election shall be held in accordance with the Elections Code of the State of California.
(c) The election on the measure set forth herein shall be held in San Mateo County in the City of Brisbane on November 3, 2026, as required by law, and the County is authorized to canvass the returns of the election with respect to the votes cast in the City of Brisbane and certify the results to the City Council of the City of Brisbane.
(d) At the next regular meeting of the City Council of the City of Brisbane occurring after the returns of the election for the measure set forth herein have been canvassed and the results have been certified to the City Council, or at a special meeting called for such purpose if required by law, the City Council shall cause to be entered in its minutes a statement of the results of the election.
Section 5. Submission of Ballot Arguments.
(a) In accordance with California Elections Code § 9282, the City Council authorizes the City Council or members of the City Council to file written arguments in favor of the Ordinance, accompanied by the printed name(s) and signature(s) of the author(s) submitting them.
(b) Arguments in favor and against the measure shall be filed with the City Clerk no later than 12:00 p.m. on August 7, 2026, signed, with the printed name(s) and signature(s) of the author(s) submitting them, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers who is the author of the argument. The City Clerk will file the arguments with the County on August 11, 2026. The argument shall be accompanied by the Form of Statement to Be Filed By Author(s) of Argument, which can be obtained from the Office of the City Clerk. (c) Arguments shall not exceed three hundred (300) words and shall be signed by not more than five (5) persons.
(d) The City Council hereby appoints a subcommittee of the City Council, comprising of Councilmembers XX and XX, and authorizes said subcommittee to prepare and file the written argument in favor of the proposed measure, on behalf of the City Council, no later than August 7, 2026. Once the argument is lodged with the City Clerk, the City Clerk shall notify other members of the City Council, who may then sign the argument on file, but may not make any revisions thereto.
Resolution No. XXXX
4902-5388-0762 v1
(e) When the City Clerk has selected the arguments for and against the measure, which will be printed and distributed to the voters, the City Clerk shall send copies of the argument in favor of the measure to the authors of the argument against it, and copies of the argument against it to the authors of the argument in favor. Any rebuttal argument shall not exceed 250 words and shall be filed no later than 12:00 p.m. on August 14, 2026, accompanied by the printed names and signatures of the persons submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers. The City Clerk will file the arguments with the County by August 18, 2026. The rebuttal arguments shall be accompanied by the Form of Statement to Be Filed By Author(s) of Argument, which can be obtained from the Office of the City Clerk. Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument that it seeks to rebut.
Section 6. Impartial Analysis. In accordance with California Elections Code section 9280, the City Council directs the City Clerk to transmit a copy of this Measure to the City Attorney, who shall prepare an impartial analysis showing the effect of the measure on the existing law and the operation of the measure. The City Attorney’s impartial analysis may not exceed 500 words and shall be filed with the City Clerk no later than 5:00 p.m. on August 17, 2026.
Section 7. Public Review Period. Pursuant to Elections Code Section 9295, the ten (10) day public review period for direct arguments submitted shall open at 5:00 p.m. on August 11, 2026 and shall close at 5:00 p.m. on August 21, 2026. If a rebuttal argument is submitted, the ten (10) day public review period shall open at 5:00 p.m. on August 18, 2026, immediately following the filing deadline with the County, and shall close at 5:00 p.m. on August 28, 2026.
Section 8. Services of City Clerk. The City Clerk is hereby authorized and directed to take all steps necessary to place the measure on the ballot and to cause the ordinance or measure to be printed. A copy of the measure shall be made available to any voter upon request.
Section 9. Severability. Should any section, subsection, clause or provision of this resolution for any reason be held to be invalid, then the remainder of the resolution shall be deemed valid, it being expressly declared that this resolution, and each and every section, subsection, clause and phrase hereof would have been prepared, proposed, approved, adopted and/or ratified even if any other section, subsection, sentence, clause or phrase of this resolution were declared invalid.
Section 10. Compliance with CEQA. The City Council finds and determines that revising its Business License Tax is not a “Project” as defined under section 15378(b)(4) of the California Environmental Quality Act (CEQA) Guidelines because it is a financing decision without commitment to a specific project that may result in a potentially
Resolution No. XXXX
4902-5388-0762 v1
significant physical impact on the environment; therefore, pursuant to section 15060(c)(3) of the State CEQA Guidelines, the action is not subject to CEQA.
Section 11. Passage of this Resolution. This Business License Tax is a general tax requiring the approval of a majority of qualified electors casting votes. Pursuant to Government Code Section 53724, this Resolution must be approved by the affirmative vote of at least two-thirds of the Council.
I, Ingrid Padilla, City Clerk of the City of Brisbane, do hereby certify that the above and foregoing City Council resolution was duly and regularly passed and adopted at a meeting of said City Council on the ___ day of July, 2026, by the following votes:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of said City on this ___ day of July, 2026.
Ingrid Padilla, City Clerk
EXHIBIT A
ORDINANCE NO. XXXX
AN ORDINANCE OF THE PEOPLE OF THE CITY OF
BRISBANE AMENDING CHAPTERS 5.04 (GENERAL
PROVISIONS), 5.12 (LICENSE REQUIREMENTS AND
EXEMPTIONS), AND 5.20 (LICENSE FEES) OF BRISBANE
MUNICIPAL CODE TITLE 5 (BUSINESS LICENSES, TAXES
AND REGULATIONS), DIVISION I (BUSINESS LICENSE
TAX) TO REVISE CERTAIN DEFINITIONS AND REVISE THE
METHOD OF CALCULATION OF THE BUSINESS LICENSE
TAX, DELETE CERTAIN FEES
WHEREAS, the City conducted a comprehensive Business License Tax Study through its business license administrator, HdL Companies, to evaluate the City's existing business license tax structure, compare it to current best practices, and assess alternatives that would better align the tax program with the City's existing and future business environment; and WHEREAS, the Business License Tax Study found that the City's current tax structure has not been significantly updated since 1983, that the top 100 businesses account for approximately 95 percent of reported gross receipts and 90 percent of total tax assessed, and that business license tax revenue growth has remained relatively flat over the last four years; and WHEREAS, following review of the alternatives presented in the Study, the City Council directed staff to proceed with a simplified tax structure based on a single gross receipts methodology, consisting of a flat-rate tax for smaller businesses and a uniform gross receipts rate for businesses exceeding a specified revenue threshold, in order to modernize the tax program, improve administrative simplicity, accommodate current and emerging industries, and support small businesses and micro-enterprises; and
WHEREAS, the proposed measure would maintain existing exemptions and special tax provisions, including those applicable to nonprofit organizations, the Capital Improvement Tax, and other specifically regulated business categories, while introducing a cost-of-operations methodology for certain businesses whose activities are not appropriately measured by gross receipts or employee headcount.
NOW, THEREFORE, THE PEOPLE OF THE CITY OF BRISBANE DO ORDAIN AS FOLLOWS:
Section 1. Findings.
The People of the City of Brisbane find that the above referenced recitals are true and correct and material to the adoption of this Ordinance.
Section 2. Compliance with CEQA.
Adoption of this Ordinance is not a “project” pursuant to the California Environmental Quality Act, Public Resources Code section 21000 et seq., including without limitation California Code of Regulations, Title 14, Sections 15378(b)(4) and 15061(b)(3), as it can be seen with certainty that there is no possibility that the adoption of this Ordinance may have a significant effect on the environment. This Ordinance revises the Business License Tax and thus pertains to the creation of City funding mechanisms and City fiscal activities, which does not involve any commitment to any project which may result in a potentially significant physical impact on the environment.
Section 3. Amendment of Brisbane Municipal Code.
Division I (Business License Tax) of Title 5 (Business Licenses, Taxes, and Regulations) of the Brisbane Municipal Code is hereby amended as shown in Attachment 1. Deletions are shown as strikethrough and additions are underlined.
Section 4. Severability.
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby, and to this end the provisions of this Ordinance are declared to be severable.
Section 5. Council Authority to Amend.
Pursuant to California Elections Code Section 9217, the City Council has the right and authority to amend this Ordinance to further its purposes and intent (including, but not limited to, amendment for more efficient administration as determined by the City Council) in any manner that does not increase a tax rate, or otherwise constitute a tax increase for which voter approval is required by Article XIIIC of the California Constitution Section 6. Codification.
This Ordinance shall be codified in the City of Brisbane Municipal Code.
Section 7. Effective Date.
If this Ordinance is approved by a majority vote of the City of Brisbane electorate voting on the measure at the November 3, 2026 election, then this Ordinance shall become effective ten (10) days following the date the vote is declared by the City Council in accordance with Elections Code §9217.
Section 8. Publication.
The City Clerk is directed to publish this Ordinance as required by State law.
4907-4148-6777 v1
ATTACHMENT 1 to EXHIBIT A
Brisbane Municipal Code
Title 5 – Business Licenses, Taxes, and Regulations
Division I — Business License Tax
Chapter 5.04 — General Provisions
Article I — General Provisions
5.04.010 - Revenue measure
The ordinance codified in Chapters 5.04 through 5.24 is enacted solely to raise revenue for municipal purposes and is not intended for regulation.
(Ord. 232 § 3-5, 1977)
5.04.020 - Effect on other ordinances or chapters
Persons required to pay a license tax for transacting and carrying on any business under Chapters 5.04 through 5.24 shall not be relieved from the payment of any license tax for the privilege of doing such business required under any other ordinance or chapter of the city, and shall remain subject to the regulating provisions of other ordinances. (Ord. 232 § 3-6, 1977)
Article II — Definitions
5.04.030 - Business
"Business," wherever used in Chapters 5.04 through 5.24, means and includes professions, trades, occupations, and all and every kind of calling carried on for profit or livelihood. a profession, art, trade, vocation, rental, lease, enterprise, establishment, occupation, or calling, which is conducted for the purpose of earning in whole, or in part, a profit or livelihood, whether or not a profit or livelihood is actually earned, whether paid in money, goods, labor, or otherwise, and whether or not the business has a fixed place of business in the City. (Ord. 232 § 1-1, 1977)
5.04.040 - City
"City" means the City of Brisbane.
(Ord. 232 § 1-8, 1977)
5.04.050 - Conducting
"Conducting" means and includes the act of conducting, managing, or carrying on a certain business or occupation.
(Ord. 232 § 1-2, 1977)
5.04.060 - Contractor
"Contractor" includes any person who shall do any type of construction work for an agreed price, or who holds himself out to the public as in such business, or who erects, constructs,
4907-4148-6777 v1
alters, or repairs any building or structure for the purpose of selling or renting the same, and who does not employ therefor a regularly licensed person. (Ord. 232 § 1-3, 1977)
5.04.070 - Day
"Day" means calendar day unless otherwise specified.
(Ord. 232 § 1-8.5, 1977)
5.04.080 - Employee
"Employee" means all persons engaged in the operation or conduct of any business, whether the owner, a member of the owner's family, partner, agent, manager, solicitor, and any and all other persons employed or working in the business.
(Ord. 232 § 1-4, 1977)
5.04.090 - Fiscal year
"Fiscal year" means the twelve-month period commencing January 1st and ending December 31st, both inclusive.
(Ord. 232 § 1-5, 1977)
5.04.100 - Fixed place of business
"Fixed place of business" means a place of business regularly kept open, with someone in charge for the transaction of the particular business engaged in during the hours customary to transact such business.
(Ord. 232 § 1-6, 1977)
5.04.110 - Gross receipts
"Gross receipts" includes the total amounts actually received or receivable from sales and the total amounts actually received or receivable for the performance of any act or service of whatever nature, for which a charge is made or credit allowed, whether or not such act or service is done as part of or in connection with the sale of materials, goods, wares, or merchandise. "Gross receipts" includes all receipts, cash, credits, and property of any kind or nature, without any deduction for the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, or losses or other expenses.
Excluded from "gross receipts" are the following:
A. Cash discounts allowed and taken on sales;
B. Credit allowed on property accepted as part of the purchase price and which property may later be sold;
C. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;
D. Such part of the sale price of property returned by a purchaser upon rescission of the contract of sale as is refunded either in cash or by credit; E. Amounts collected for others where the business is acting as an agent or trustee, to the extent such amounts are paid to those for whom collected, provided the agent or trustee has furnished the director of finance with the names and addresses of the others and the amounts paid to them;
F. That portion of the receipts of a general contractor representing payments to subcontractors, provided such subcontractors are licensed under Chapters 5.04 through
5.24 and the general contractor furnishes the director of finance with the names and addresses of the subcontractors and the amounts paid to each;
4907-4148-6777 v1
G. Receipts of refundable deposits, except that refundable deposits forfeited and taken into income of the business are not excluded;
H. As to a real estate agent or broker, the sales price of real estate sold for the account of others, except that portion representing commission or other income to the agent or broker;
I. As to a retail gasoline dealer, the portion of receipts from the sale of motor vehicle fuels equal to the motor vehicle fuel license tax imposed by and previously paid under Part 2 of Division 2 of the Revenue and Taxation Code; and J. As to a retail gasoline dealer, the special motor fuel tax imposed by Section 4041 of Title 26 of the United States Code, if paid by the dealer or collected from the consumer or purchaser.
Gross Receipts
“Gross receipts” means the total amount of compensation actually received or receivable from all sales and the total amount of compensation actually received or receivable for the performance of any act or service, of whatever nature it may be, for which a charge is made or credit allowed, whether or not such act or service is done as part of or in connection with the sale of materials, goods, wares, or merchandise. Included in “gross receipts” are all receipts, cash, credits, and property of any kind or nature, without any deduction for the cost of property sold, materials, labor, service, interest, losses, or other expenses whatsoever. a. Where the gross receipts are less than the cost of maintaining the operations of the Licensee, then the Licensee shall be deemed to produce gross receipts in an amount at least equal to the cost of operations. The “cost of operations” means the cost of maintaining the operations of the business and includes, but is not limited to, rent, utilities, depreciation, salaries, wages, fixed charges, and other expenses. b. The following are excluded from “gross receipts”:
1. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser.
2. Receipts of refundable deposits, except that such deposits when forfeited and taken as income of the Licensee are not excluded.
3. Amounts collected for others where the Licensee is acting as an agent or trustee to the extent that such amounts are paid to those for whom they are collected, provided the agent or trustee has furnished the Tax Collector with the names and addresses of the others and the amounts paid to them. The exclusion does not apply to any fees, percentages, or other payments retained by the agent or trustee.
4. Transactions between a partnership and its partners when the partnership itself has obtained a business license and paid business license tax under this Article. (Ord. 232 § 1-11, 1977)
5.04.120 - License collector
"License collector" means the finance director of the city. (Ord. 232 § 1-7, 1977)
5.04.130 - Person
Formatted: Indent: Left: 0"
4907-4148-6777 v1
"Person" means any individual, firm, copartnership, joint adventure, association, corporation, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit.
(Ord. 232 § 1-10, 1977)
5.04.140 - Vehicle
"Vehicle" means every device in, upon, or by which any person or property is or may be transported or drawn upon a public street, excepting devices moved by human power or used exclusively upon stationary rails or tracks. A trailer shall be treated as a separate vehicle. (Ord. 232 § 1-9, 1977)
Chapter 5.12 — License Requirements and Exemptions
5.12.010 - License required
It is unlawful for any person, whether for himself/herself or for any other person, to commence or carry on any business in the city without first having procured a license from the city, or without complying with Chapters 5.04 through 5.24.
(Ord. 232 § 3-1, 1977)
5.12.020 - Separate licenses required for branch establishments A separate license must be obtained for each branch establishment or location of the business transacted and carried on, and for each separate unrelated type of business at the same location. Each license authorizes the licensee to transact and carry on only the business licensed at the location or in the manner designated in such license; provided, that warehouses and distributing plants used in connection with and incidental to a licensed business shall not be deemed to be separate places of business or branch establishments. (Ord. 232 § 3-2, 1977)
5.12.030 - Exemption — Newspapers
Chapters 5.04 through 5.24 shall not apply to the publication and sale of newspapers intended primarily for the dissemination of news, having a bona fide list of subscribers residing within the city, and published at regular intervals of not less than once per month. (Ord. 232 § 8-1, 1977)
5.12.040 - Exemption — Charitable and nonprofit organizations Chapters 5.04 through 5.24 shall not require the payment of a license tax to conduct, manage, or carry on any business, occupation, or activity from any institution or organization conducted, managed, or carried on wholly for charitable purposes or from which profit is not derived, either directly or indirectly, by any individual. No license tax shall be required for the conducting of any entertainment, concert, exhibition, or lecture on scientific, historical, literary, religious, or moral subjects within the city whenever the receipts are to be appropriated to any church or school or to any religious or benevolent purpose; nor shall any license tax be required for entertainment, dances, concerts, exhibitions, or lectures by any religious, charitable, fraternal, educational, military, state, county, or municipal organization or association whenever the receipts are to be appropriated for the purposes for which such organization or association was formed and from which profit is not derived, either directly or indirectly, by any individual. (Ord. 232 § 8-2, 1977)
5.12.050 - Exemption — Public utilities
4907-4148-6777 v1
Any public utility subject to regulation by the California Public Utilities Commission and making payment to the city under the terms of a franchise or similar agreement shall be exempt from Chapters 5.04 through 5.24.
(Ord. 232 § 8-3, 1977)
5.12.060 - Exemption — Interstate commerce
Every peddler, solicitor, or other person claiming exemption from any license under Chapters
5.04 through 5.24 on the ground that such license burdens interstate commerce shall file a verified statement with the license collector, disclosing the interstate or other character of the business entitling such exemption. The statement shall contain: the name and location of the company or firm for which orders are to be solicited; the name and address of the nearest local or state manager; the kind of goods, wares, or merchandise to be delivered; the place from which the same are to be shipped; the method of solicitation; the location of any warehouse, factory, or plant within the state; the method of delivery; the name and address of the applicant; and any other facts necessary to establish the claim of exemption. A copy of the order blank, contract form, or other papers used by such person in taking orders shall be attached to the application.
(Ord. 232 § 4-7, 1977)
5.12.070 - Exemption — Cafe musicians and real estate auctioneers Chapters 5.04 through 5.24 shall not be construed to require a regulatory license or impose a regulatory license fee with respect to cafe musicians to the extent the city may be prohibited from doing so pursuant to Section 16000.5 of the California Business and Professions Code, nor shall Chapters 5.04 through 5.24 be construed to require a license fee for the privilege of auctioning real estate from any real estate auctioneer whose business is limited exclusively to auctioning real estate, unless the auctioneer's permanent place of business is located in the city. This latter restriction is intended to reflect the limitations imposed upon the city by Section 16002.1 of the California Business and Professions Code. (Ord. 261 § 22, 1980; Ord. 232 § 8-4, 1977)
5.12.080 - Exemption — Veterans
Every peddler, solicitor, or other person claiming exemption from payment of any license provided in Chapters 5.04 through 5.24 on the ground that he is an honorably discharged or released soldier, sailor, or marine of the United States who is physically unable to obtain a livelihood by manual labor and is a qualified elector of the state, as provided by Section 16001 of the Business and Professions Code, shall also file with the license collector a certificate of a regularly licensed and practicing physician, dated within a month of the application, to the effect that the applicant is physically unable to obtain a livelihood by manual labor and stating the nature of the incapacitation.
(Ord. 232 § 4-8, 1977)
Chapter 5.20 — License Fees
5.20.010 - Tax based on gross receipts, number of employees, or square footage A. Tax Based Upon Gross Receipts
Except as provided in subsections B through D, every person having a fixed place of business engaged in selling at retail any goods, wares, or merchandise; engaged in a wholesale or manufacturing business; or conducting any trade, profession, occupation, service, calling, or
4907-4148-6777 v1
business in the city not otherwise specifically licensed shall pay a business license tax based upon the annual estimated gross sales or receipts as follows:
Gross Receipts Over But Not More Than Business License Tax $0 $50,000 $50
50,000 75,000 75
75,000 100,000 100
100,000 150,000 125
150,000 250,000 150
250,000 350,000 175
350,000 450,000 200
450,000 550,000 225
550,000 700,000 250
700,000 1,000,000 300
1,000,000 1,500,000 350
1,500,000 2,000,000 400
Gross Receipts Over But Not More Than Business License Tax $2,000,000 $3,000,000 $500 plus 20¢ per $1,000 or
fraction thereof over
$2,000,000 and up to
$3,000,000
3,000,000 4,000,000 $700 plus 15¢ per $1,000 or
fraction thereof over
$3,000,000 and up to
$4,000,000
4,000,000 5,000,000 $850 plus 10¢ per $1,000 or
fraction thereof over
$4,000,000 and up to
$5,000,000
5,000,000 10,000,000 $1,050 plus 5¢ per $1,000 or
fraction thereof over
$5,000,000 and up to
$10,000,000
10,000,000 — $1,300 plus 4¢ per $1,000 or
fraction thereof over
$10,000,000 * The city will
calculate the tax due based
on 7.5¢ per $100.00 and
sales tax received, with a
minimum of $1,300.00 and
4907-4148-6777 v1
Gross Receipts Over But Not More Than Business License Tax maximum of $35,000.00
(after 2010, the maximum will
be indexed with inflation).
B. Tax Based Upon Number of Employees
Notwithstanding subsection A, every person manufacturing any goods, wares, or merchandise; any person operating any warehouse for the storage of wholesale or retail goods, wares, or merchandise; or any person whose administrative headquarters are within the city boundaries shall pay an annual business license tax that is the greater of the amount due under subsection A or the amount due under the following schedule:
Employees Annual Tax
1 employee $18.00
Next 19 employees $9.00 per person ($189.00 per 20 employees) Next 80 employees $4.50 per person ($549.00 per 100
employees)
Next 100 employees $3.75 per person ($924.00 per 200
employees)
Over 200 employees $2.25 per person
C. Storage Facilities
Any person engaged in the business of operating, leasing, supplying, or providing storage facilities not covered in subsection B shall pay an annual business license tax that is the greater of $.10 per square foot of storage space or the amount that would be due under subsection A.
D. Rental of Commercial or Residential Property
Every person engaged in the business of operating rental units, whether used for commercial or residential purposes, shall pay as an annual business license tax the sum that would be due under subsection A; except that in the case of residential rental, the annual business license tax shall not be levied upon gross receipts from any property with fewer than five units. (Ord. 290 § 1(part), 1983; Ord. 232 § 7-1, 1977)
Rates
Except for the businesses identified in provisions listed in Sections 5.20.011, 5.20.015,5.20.025,
5.20.035, 5.20.100, 5.20.125, 5.20.180, 5.20.220, and 5.20.240, all businesses subject to this chapter must pay a license tax based on the general gross receipts rate. (a) A licensee must pay a license tax for each tax year based on gross receipts derived from business activity in the city.
(b) If those gross receipts are $25,000 or less, the licensee must pay a flat license tax of $50. (c) If the gross receipts are greater than $25,000, then the license tax is calculated as follows:
a. Take the total gross receipts and subtract $25,000.
Formatted: Not Highlight
Formatted: Not Highlight
Formatted: Not Highlight
4907-4148-6777 v1
b. Multiply the remaining gross receipts by $1.00 per $1,000 of gross receipts above $25,000. c. Add $50 to the sum in step b to account for the first $25,000 in gross receipts. d. Gross receipts are measured by the licensee’s total gross receipts derived from business conducted in the city for the previous tax year, except when a licensee did not operate in the city for the entirety of the previous tax year, in which case the tax is measured by the licensee’s gross receipts derived from business conducted in the city for the current tax year. The rate applied is the maximum rate unless lowered by appropriate Council action. e. If the licensee is exempt under this chapter, no license tax is owed.
5.20.011 - Liquid storage facilities
A. Any person engaged in the business of operating, leasing, supplying, or providing a liquid storage facility shall pay an annual business license tax of up to six cents ($0.06) per barrel delivered over the rack in the preceding calendar year, with the exact rate to be determined each year by the Brisbane City Council; provided, however, that the tax imposed on SFPP, L.P. (or its successor) for the liquid storage facility at the Brisbane Terminal, located at 950 Tunnel Avenue, Brisbane, California, shall in no event exceed four hundred thousand dollars ($400,000.00) annually.
B. The annual amount of liquid storage facilities business license tax payable by any person shall be reduced by the amount of sales or use tax received by the city attributable to such person, or sales tax attributable to other persons based on sales of liquid storage facilities as the point of sale, during the same calendar year (the "sales tax credit"). (Ord. No. 587, § 1, 11-5-13; Ord. No. 646, § 1, 11-5-19)
5.20.015 - Special tax for capital improvements
A. Designation of Special Tax. The special tax imposed by this section shall be known and designated as the capital improvement tax.
B. Definitions. As used in this section:
1. "Capital improvement" means any asset having an acquisition, construction, or installation cost of $25,000 or more and a useful life of 10 years or more, as shown on the financial records of the city.
2. "Capital improvement project" means any capital improvement financed, in whole or in part, with proceeds of the capital improvement tax.
C. Use of Special Tax. Proceeds of the capital improvement tax shall be utilized only for the acquisition, construction, installation, maintenance, repair, and replacement of capital improvements owned or to be constructed or acquired by the city. Such proceeds shall be allocated each fiscal year to specific capital improvement projects identified in the city's annual budget, subject to adjustments as may be approved from time to time during the fiscal year by resolution of the city council.
D. Accounting and Annual Report. All proceeds of the capital improvement tax shall be accounted for in a separate capital improvement tax fund, hereby established as part of the city's financial records. Disbursements from the capital improvement tax fund shall only be made for payment of costs related to capital improvement projects. Not later than March 1st of each year, the director of administrative services shall submit an annual report to the city council showing the total amount of capital improvement tax proceeds deposited during the preceding fiscal year, the nature and amount of expenditures from the fund during the preceding fiscal year, and the current status of each capital improvement project being financed by such disbursements.
Formatted: Not Highlight
4907-4148-6777 v1
E. Application of Special Tax. The capital improvement tax shall be imposed upon every person taxed under subsection 5.20.010(A) having annual gross sales or gross receipts in excess of $10,000,000. The capital improvement tax shall be in addition to any general business license tax payable under subsection 5.20.010(A) and shall be paid at the same time. Persons having annual gross sales or gross receipts of $10,000,000 or less shall be exempt from the capital improvement tax.
F. Calculation of Capital Improvement Tax. The special tax shall be seven and one-half cents (7½¢) per one hundred dollars ($100.00) or fraction thereof of the annual gross sales or gross receipts of every person subject to the capital improvement tax, reduced by the amount of general business license tax payable by such person pursuant to subsection 5.20.010(A).
G. Credit for Sales Tax Received by the City. The annual amount of capital improvement tax payable by any person shall be reduced by the amount of sales or use tax received by the city attributable to such person during the same calendar year (the "sales tax credit"). In the event the sales tax credit for any single year exceeds the capital improvement tax payable for the same year, the excess sales tax credit shall be applied toward reduction of the general business license tax payable under subsection 5.20.010(A) for the same year, but in no event shall the general business license tax be reduced below the minimum payment of $1,300.
H. Limit on Total Amount of General and Special Business License Taxes. The total amount of the general business license tax payable under subsection 5.20.010(A) plus the capital improvement tax, as calculated in accordance with subsections 5.20.015(F) and 5.20.015(G), shall in no event exceed the following limits:
1. $10,000 for calendar year 2009;
2. $22,500 for calendar year 2010;
3. $35,000 for calendar year 2011; and
4. For each calendar year beginning January 1, 2012, and each January 1 thereafter (the "adjustment date"), $35,000 plus an amount obtained by multiplying $35,000 by a fraction, the numerator of which shall be the Consumer Price Index for Urban Wage Earners and Clerical Workers, All Items, San Francisco-Oakland Statistical Area ("CPI"), published nearest to the adjustment date, and the denominator of which shall be the CPI published nearest to January 1, 2011.
Where the combined total of the general business license tax and the capital improvement tax exceeds the applicable limit, the excess shall be deducted from the capital improvement tax and not the general business license tax.
I. Administrative Regulations. The director of administrative services is authorized to adopt rules and regulations for implementation of this section, consistent with the provisions hereof. Any decision or determination of the director may be appealed to the city manager, and any ruling by the city manager may be further appealed to the city council. Appeals shall be filed with the city clerk within 30 days after the date of the final decision or determination at the preceding level.
The notice of appeal shall set forth the grounds of the appeal and may be accompanied by supporting documents.
(Ord. No. 535, § 1, 11-4-08)
5.20.020 - Delivery by vehicle
Every person not having a fixed place of business within the city, and not otherwise licensed under Chapters 5.04 through 5.24, who regularly delivers goods, wares, or merchandise of any kind by vehicle, or who provides any service by the use of vehicles in the city, shall pay a license tax of thirty dollars ($30.00) annually; provided, that any such person may elect to pay a license tax under Section 5.20.010, measured by gross receipts from business done within the city.
(Ord. 232 § 7-2, 1977)
4907-4148-6777 v1
5.20.025 - Cannabis business
A. "Cannabis business" means a person issued a cannabis operator permit pursuant to Chapter
17.33. B. The license tax is as follows and may be adjusted by city council by resolution or ordinance:
1. 1% of gross receipts, and up to 2% of gross receipts, for commercial cannabis testing operations;
2. 1% of gross receipts, and up to 2% of gross receipts, for commercial cannabis distribution operations;
3. 1% of gross receipts, and up to 4% of gross receipts, for commercial cannabis manufacturing operations;
4. 1% of gross receipts, and up to 5% of gross receipts, for commercial cannabis retail operations; and
5. 1% of gross receipts, and up to 6% of gross receipts, for a commercial cannabis business not otherwise included in this subsection B.
C. The license tax imposed is an excise tax and not a sales and use tax, and is in addition to any other fees required under the Brisbane Municipal Code.
D. Payment of a tax required under this section, and its acceptance by the city, shall not entitle any person to engage in any cannabis business unless the person has complied with all requirements of Chapter 17.33 and all other applicable state or local laws. No tax paid under this section shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any state or local laws.
E. Commercial cannabis businesses operating unlawfully in the city are subject to the license taxes under this section, in addition to any applicable penalties or fines under local and state laws.
(Ord. No. 647, § 2, 11-5-19)
5.20.030 - Itinerant vendors
Every person engaged in the business or occupation of any itinerant vendor shall pay a license tax of twenty-five dollars ($25.00) per day in advance. "Itinerant vendor" means and includes all persons, both principal and agent, who engage in a temporary and transient business in the city, selling goods, wares, and merchandise with the intention of continuing in the city for a period of not more than 90 days, and who, for the purpose of carrying on such business, hires, leases, or occupies any room, building, or structure for the exhibition or sale of such goods, wares, or merchandise, or from which sales shall be made or business solicited by means of samples or delivery from house to house. Such person or firm shall not be relieved from the provisions of this section by reason of temporarily associating with any local dealer, trader, merchant, or auctioneer, or by conducting such temporary or transient business in connection with, as a part of, or in the name of any local dealer, trader, merchant, or auctioneer. The provisions of this section shall not apply to commercial travelers or selling agents selling to dealers, whether by sample or otherwise, nor to hawkers on the street, peddlers from vehicles, nor to persons selling fruit, vegetables, butter, eggs, or other fruits or ranch products. (Ord. 232 § 7-3, 1977)
5.20.035 - Hotels and other places designed for occupancy by transients A. Definitions. The definitions used in this Section 5.20.035 shall be the same as the definitions in Section 3.24.020 of the Brisbane Municipal Code, as that section may be amended from time to time.
B. Every operator shall pay a daily business license tax of two dollars and fifty cents ($2.50) for every room in a hotel for which a transient has paid rent.
4907-4148-6777 v1
C. The business license tax under this Section 5.20.035 shall be paid in four installments, due no later than January 1, April 1, July 1, and October 1 of each year.
D. Beginning January 1, 2024, and on January 1 of each subsequent year (the "adjustment date"), the $2.50 referred to in subsection B may be increased by multiplying $2.50 by a fraction, the numerator of which shall be the Consumer Price Index for Urban Wage Earners and Clerical Workers, All Items, San Francisco-Oakland-Hayward Statistical Area ("CPI"), published nearest to the adjustment date, and the denominator of which shall be the CPI published nearest to the date the business license tax was set at $2.50. (Ord. No. 673, § 1, 7-7-22)
5.20.036 - Definitions
Terms used in Sections 5.20.037 through 5.20.043 shall have the same meanings as the definitions of those terms in Section 3.24.020 of this code, as that section may be amended from time to time.
(Ord. No. 676, § 2, 12-15-22)
5.20.037 - Reporting and remitting
Each operator shall, on or before the last day of April, July, October, and January, make a return to the tax administrator, on forms provided by the tax administrator, of the total rooms rented during the previous three months and the amount of tax calculated for such room rentals.
The full amount of the tax calculated shall be remitted to the tax administrator at the time the return is filed. The tax administrator may require additional information in any return. Such actions may be appealed under Section 5.20.040. Returns and payments are due immediately upon cessation of any business for any reason.
(Ord. No. 676, § 2, 12-15-22)
5.20.038 - Penalties and interest
A. Original Delinquency. Any operator who fails to remit any tax imposed by Section 5.20.035 within the time required shall pay a penalty of ten percent (10%) of the amount of the tax, in addition to the amount of the tax.
B. Continued Delinquency. Any operator who fails to remit any delinquent remittance within 30 days after the date on which the remittance first became delinquent shall pay a second delinquency penalty of ten percent (10%) of the amount of the tax, in addition to the amount of the tax and the first ten percent (10%) penalty.
C. Fraud. If the tax administrator determines that the non-payment of any remittance due under Section 5.20.035 is due to fraud, a penalty of twenty-five percent (25%) of the amount of the tax shall be added, in addition to the penalties stated in subsections A and B.
D. Interest. In addition to the penalties imposed, any operator who fails to remit any tax imposed by Section 5.20.035 shall pay interest at the rate of one percent per month or fraction thereof on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent until paid in full.
E. Penalties and Interest Merged With Tax. Every penalty imposed and such interest as accrues under this section shall become part of the tax required to be paid by Section 5.20.035. (Ord. No. 676, § 2, 12-15-22)
5.20.039 - Failure to collect and report tax — determination of tax by tax administrator A. Assessment of Estimated Tax. If any operator shall fail or refuse to pay the tax and to make a return within the time provided in Section 5.20.036, the tax administrator shall proceed to obtain facts and information upon which to base an estimate of the tax due. As soon as the tax administrator procures sufficient facts and information upon which to base an assessment, the tax administrator shall determine and assess against such operator the tax, penalty, and interest
4907-4148-6777 v1
provided by Section 5.20.038. The tax administrator may include in the assessment the costs of any necessary audits or investigations.
B. Notice of Assessment. Where a determination and assessment is made under subsection A, the tax administrator shall give notice of the amount so assessed by serving it personally or by depositing it in the U.S. mail, postage prepaid, addressed to the operator at the operator's last known place of address. Such operator may, within 10 days after the serving or mailing of such notice, make written application to the tax administrator for a hearing on the amount assessed.
If no application for a hearing is made within the prescribed time, the tax, penalties, and interest determined by the tax administrator shall become final and conclusive and immediately due and payable. If such application is made, the tax administrator shall give no less than five days' written notice to the operator to show cause at a time and place fixed in the notice why the amount specified should not be fixed for such tax, penalties, and interest. At such hearing, the operator may appear and offer evidence. After the hearing, the tax administrator shall determine the proper tax, penalties, and interest to be remitted and shall give written notice to the operator of such determination and the amount due. The amount determined to be due shall be paid in full within 15 days unless an appeal is taken as provided in Section 5.20.040. (Ord. No. 676, § 2, 12-15-22)
5.20.040 - Appeal
Any operator aggrieved by any decision of the tax administrator with respect to the amount of such tax, penalties, and interest may appeal to the city manager by filing a notice of appeal with the city clerk within 15 days of the serving or mailing of the determination of tax due. The city manager shall fix a time and place for hearing such appeal, and the city clerk shall give written notice to the operator at the operator's last known place of address. The city manager may designate a neutral hearing officer to hear the appeal and make a recommendation to the city manager. The findings of the city manager shall be final and conclusive and shall be served on the operator/appellant in the manner prescribed above. Any amount found to be due shall be immediately due and payable upon service of the notice. (Ord. No. 676, § 2, 12-15-22)
5.20.041 - Records
Every operator liable for payment of any tax imposed by Section 5.20.035 shall keep and preserve, for a period of three years, all records as may be necessary to determine the amount of such tax as the operator may have been liable to pay to the city, which records the tax administrator shall have the right to inspect at all reasonable times. Such records shall be maintained at the operator's premises or shall be available for delivery to the tax administrator within two weeks after request. Such records shall be maintained for at least six months after a change of operator. The records shall include, at minimum, daily summaries of rooms rented. (Ord. No. 676, § 2, 12-15-22)
5.20.042 - Refunds
A. Whenever the amount of any tax, penalty, or interest has been overpaid or paid more than once, or has been erroneously or illegally paid or received by the city under Section 5.20.035 or
5.20.036, it may be refunded as provided in subsections B and C, provided a written claim, stating under penalty of perjury the specific grounds upon which the claim is founded, is filed with the tax administrator within three years of the date of payment or the date the tax was due, whichever was earlier.
B. An operator may claim a refund or take a credit against taxes to be remitted in the amount overpaid, paid more than once, or erroneously or illegally paid or received, when established to the satisfaction of the tax administrator that the tax paid or received was overpaid, paid more than once, or erroneously or illegally paid or received by the city.
4907-4148-6777 v1
C. No refund shall be paid under the provisions of this section unless the operator establishes the right thereto by written records showing entitlement to such refund. (Ord. No. 676, § 2, 12-15-22)
5.20.043 - Collection of tax
A. Actions to Collect. Any tax required to be paid by any operator under Section 5.20.035 shall be deemed a debt owed by the operator to the city. Any operator owing money to the city under Section 5.20.035 shall be liable to an action brought in the name of the city for recovery of such amount.
B. Notice of Intent to Record a Lien — Hearing. If the amount required to be paid to the city under Section 5.20.035 is not paid when due, the tax administrator may, within three years after the amount is due, give written notice to the operator and the owner of the property on which the hotel is located (if different) of the city's intent to record a lien against the property. The notice shall specify a time and place at which a hearing will be conducted by the tax administrator to consider any objections, which hearing shall not be less than 15 days from the date of the notice. The date of the hearing may be continued from time to time by the tax administrator. At the conclusion of the hearing, the tax administrator shall render a decision as to whether a lien should be filed with respect to any amount the tax administrator finds is then delinquent. The decision may be appealed to the city manager as provided in Section 5.20.040.
C. Recordation and Enforcement of Tax Lien. Upon a final determination of the amount of the delinquency by the tax administrator or the city manager on appeal, the tax administrator may file for record in the office of the San Mateo County recorder a tax lien specifying the amount of the tax, penalty, and interest due; the name and address of the operator liable for same; the name of the property owner; and the legal description of the property on which the hotel is located. From the time of the filing for record, the amount required to be paid together with penalties and interest constitutes a lien upon such real property. Such lien shall be valid for a period of ten years and may be enforced by an action to foreclose the lien in the manner prescribed by law.
D. Successor's Liability — Withholding by Purchaser. If any operator liable for any amount under Section 5.20.035 sells or transfers the hotel or any ownership interest therein, the successor or transferee shall withhold sufficient funds out of the purchase price to cover such amount until the former operator produces a receipt from the tax administrator showing that it has been paid, or a certificate stating that no amount is due.
E. Liability of Purchaser. If the purchaser of a hotel fails to withhold funds from the purchase price as required, the purchaser shall become liable for the payment of the amount required to be withheld, to the extent of the purchase price.
F. Continued Liability of Operator. The sale or transfer of a hotel, dismissal of the operator, or other termination of the rights of an operator to operate the hotel shall not relieve the operator from liability for taxes due or owing under Section 5.20.035. (Ord. No. 676, § 2, 12-15-22)
5.20.044 - Violations
Any violation of Sections 5.20.035 through 5.20.043 shall be punishable by the fines, penalties, and enforcement provisions set forth in Chapters 1.14, 1.16, and 1.18 of this code. (Ord. No. 676, § 2, 12-15-22)
5.20.050 - Solicitors
A. Every person conducting the business of solicitor shall pay a quarterly license tax of twentyfive dollars ($25.00) in advance. This section shall not apply to persons engaged in the business of solicitor when such persons are the employees of licensees engaged in such business.
4907-4148-6777 v1
B. For the purpose of this section, "solicitor" is defined as one who engages in the business of going from house to house, place to place, or in or along the streets within the city, selling or taking orders for, or offering to sell or take orders for, goods, wares, merchandise, advertising, or other things of value for future delivery, or for services to be performed in the future. (Ord. 232 § 7-5, 1977)
5.20.060 - Contractors and related occupations
A. Every person who engages in the business of contracting within the city shall pay a license tax of thirty-five dollars ($35.00) per quarter; provided, that any such person may elect to pay a license tax under Section 5.20.010, measured by gross receipts from business done within the city.
B. All specialty contractors engaging in the business of contracting within the city which require a state license as provided in Chapter 9, Subdivision 3 of the Business and Professions Code shall pay a license tax of twenty-five dollars ($25.00) per quarter; provided, that any such specialty contractor may elect to pay a license tax under Section 5.20.010, measured by gross receipts from business done within the city.
(Ord. 232 § 7-6, 1977)
5.20.070 - Handbill distributors
Every person conducting the business of advertising by the distribution of handbills, circulars, or other written or printed advertising material, not having a fixed place of business within the city, shall pay a semiannual license fee of one hundred fifty dollars ($150.00). (Ord. 232 § 7-7, 1977)
5.20.080 - Real estate brokers
Every licensed real estate broker conducting the business of selling or offering for sale any real property not owned by such person, which property is located within the city, but with no fixed place of business within the city, shall pay a license fee of seventy-five dollars ($75.00) semiannually; provided, that any such real estate broker may elect to pay a license fee under Section 5.20.010, measured by gross receipts from business done within the city. (Ord. 232 § 7-8, 1977)
5.20.090 - Mediumship
Every person who conducts, carries on, practices, or professes to conduct, carry on, or practice the business or art of astrology, palmistry, phrenology, life reading, fortunetelling, cartomancy, clairvoyance, clairaudience, crystal gazing, hypnotism, mediumship, prophecy, augury, divination, magic, or necromancy, and demands or receives a fee for the exercise or exhibition of that art, directly or indirectly, either as a gift, donation, or otherwise, or makes an exhibition thereof at any place where admission is charged, shall pay a license fee of one hundred dollars ($100.00) per day.
(Ord. 232 § 7-9, 1977)
5.20.100 - Recycling establishments
A. Definition. As used in this section, "recycling establishment" means an establishment engaged in the business of collecting, sorting, cleansing, treating, processing, or reconstituting waste or other discarded materials for the purpose of reuse in altered form. The term does not include any of the following:
1. A "scavenger," as defined in Section 8.24.010(F), having a contract with the city to collect garbage, rubbish, and waste matter pursuant to Chapter 8.24;
2. An "authorized recycling agent," as defined in Section 8.32.020(A), having a contract with the city to collect recyclable materials pursuant to Chapter 8.32;
4907-4148-6777 v1
3. An "applicant," as defined in Section 15.75.010, engaged in the performance of a "covered project," as defined and governed by Chapter 15.75 pertaining to construction and demolition debris; or
4. An establishment primarily engaged in the recycling of soil, including the incidental recycling of rock, stone, concrete, or rebar.
B. Business License Tax. Every recycling establishment that recycles 100,000 tons or more of material during any single calendar year shall pay a business license tax of up to four million dollars ($4,000,000) per year, subject to adjustments as provided in subsection C. The business license tax imposed by this section shall become effective in an amount as determined by the city council up to the authorized ceiling amount on such date as established by city council resolution. The business license tax shall be paid in two equal installments, due not later than January 1 and July 1 of each year.
C. Adjustments. Beginning January 1, 2018, and on January 1 of each subsequent year (the "adjustment date"), the business license tax payable under subsection B may be increased to any amount within the authorized ceiling of $4,000,000 per year. On any adjustment date after the business license tax has been set at the authorized ceiling of $4,000,000 per year, the business license tax shall be whichever is greater: (1) the tax charged for the immediately preceding year plus three percent (3%) of such tax; or (2) $4,000,000 plus an amount obtained by multiplying $4,000,000 by a fraction, the numerator of which shall be the Consumer Price Index for Urban Wage Earners and Clerical Workers, All Items, San Francisco-Oakland Statistical Area ("CPI"), published nearest to the adjustment date, and the denominator of which shall be the CPI published nearest to the date the business license tax was set at $4,000,000 per year. The city council may, by resolution, adopt a business license tax for any calendar year in an amount below the maximum tax that could be charged under the three percent or CPI adjustment provided in this subsection C.
(Ord. No. 569, § 1, 12-5-11; Ord. No. 628, 11-7-17)
5.20.110 - Movie theaters
Every person conducting or carrying on the business of operating a movie theater, theater, concert hall, auditorium, stadium, park, arena, racetrack, flea market, or other place of amusement or business where an admission charge is levied for the privilege of entering onto private property shall pay a weekly license fee as follows:
A. The license fee shall be twenty-five cents ($.25) for each person admitted over the age of twelve years.
B. Such admission charge shall be determined exclusive of any applicable sales taxes and shall not include refunds of admission charges.
C. On Monday of each week, the persons charging for admissions shall submit an accounting showing the number of paid admissions during the preceding week and such other information as prescribed by the license collector. The accounting shall be filed with the license collector and all moneys due shall be paid to the license collector each Monday for the preceding week. Should Monday fall on a holiday, the accounting and payment shall be due on the next following workday.
D. Should the licensee fail to file the accounting and make payments as prescribed in this section, the license collector shall impose penalties as prescribed by Section
5.24.070. The license collector may institute license revocation proceedings as set forth in Section 5.16.120 for failure to make payments due under this section within five days after demand.
(Ord. 238 § 1, 1978; Ord. 232 § 7-11, 1977)
5.20.120 - Pawnbrokers
4907-4148-6777 v1
All pawnbrokers and pawnbroker establishments shall pay an annual license fee of five thousand dollars ($5,000.00). The fee shall be paid in advance for each year or portion thereof prior to the issuance of the license.
(Ord. 232 § 7-12, 1977)
5.20.125 - Soil recycling establishment
A. Definition. As used in this section, "soil recycling establishment" means an establishment engaged primarily in the recycling of soil, including the incidental recycling of rock, stone, or rebar.
B. Any soil recycling establishment shall pay an annual business license tax of twenty percent (20%) of its gross receipts or two hundred thousand dollars ($200,000), whichever is greater; provided, however, the city council may by resolution impose a business license tax for any calendar year in an amount below the maximum tax that could be charged under this subsection. The business license tax shall be paid in two equal installments, due not later than January 1 and July 1 of each year.
C. Beginning January 1, 2019, and on January 1 of each subsequent year (the "adjustment date"), the $200,000 referred to in subsection B may be increased by multiplying $200,000 by a fraction, the numerator of which shall be the Consumer Price Index for Urban Wage Earners and Clerical Workers, All Items, San Francisco-Oakland-Hayward Statistical Area ("CPI"), published nearest to the adjustment date, and the denominator of which shall be the CPI published nearest to the date the business license tax was set at $200,000 per year. (Ord. No. 627, 11-7-17)
5.20.130 - Circuses and carnivals
All circuses and carnivals shall pay a business license fee of one hundred fifty dollars ($150.00) for the first day of operation and fifty dollars ($50.00) for each day thereafter during the period of the permit as issued by the city council. The fee shall be paid in advance prior to the issuance of the license. The fee is in lieu of fees set forth in Section 5.20.110. (Ord. 232 § 7-13, 1977)
5.20.140 - Catering and ice cream vending trucks
A. Fee. All businesses operating catering or ice cream vending trucks and vehicles shall pay a semiannual license fee of fifty dollars ($50.00). The fee shall be paid in advance for each year or portion thereof prior to the issuance of the license.
B. Permits. Prior to operation of a catering or ice cream vending vehicle in the city, a permit must be obtained from the Brisbane Police Department approving hours of operation, routes, noise level limitations, and other matters determined by the chief of police that may affect the health, safety, or peace of the citizens of Brisbane. The chief of police or designee may revoke the permit if the conditions thereon are violated or if the business operation becomes a nuisance. Any action of the chief of police in denying, revoking, or setting conditions for the permit may be appealed within 10 days to the city council for hearing and final determination.
C. Background Check for Ice Cream Vendors. The police department shall conduct a background search, including fingerprinting, of all vendors of ice cream and other products sold from vehicles where the customers are primarily minors. There shall be a fee of twenty dollars ($20.00) payable in advance for each background search and investigation of each driver or vendor. Upon good cause, the chief of police or designee may refuse to issue a permit to operate the business within the city. The decision may be appealed to the city council as set forth in Section 5.16.130.
(Ord. 232 § 7-14, 1977)
5.20.150 - Amusement concessions
4907-4148-6777 v1
Every person conducting any amusement concession not in conjunction with a carnival or fair shall pay a license tax for each concession and device as follows:
A. Merry-go-round, ferris wheel, dodgem, swing, or other mechanical device for the carrying of passengers: $50.00 quarterly;
B. Ball and ring throwing games, spin-the-wheel, mechanical and electrical games, shooting gallery, keno, lotto, and other similar games of chance, provided and to the extent that these games are otherwise permitted by state law: $40.00 quarterly; C. Sales of merchandise or foodstuffs, not in connection with any game of chance:
$20.00 quarterly.
(Ord. 232 § 7-15, 1977)
5.20.160 - Boxing or wrestling exhibitions
Every person staging a boxing or wrestling exhibition shall pay a license tax of one hundred dollars ($100.00) for each such exhibition.
(Ord. 232 § 7-16, 1977)
5.20.170 - Secondhand dealers or collectors, not auto or machine wrecking The license fee for all secondhand dealers or collectors, not auto or machine wrecking, doing business within the city shall be one hundred fifty dollars ($150.00) annually. (Ord. 232 § 7-17, 1977)
5.20.180 - Waste recycling
Every person conducting or carrying on the business of recycling non-water-soluble, nondecomposable wastes and industrial wastes shall pay a license fee as follows:
A. The business license fee shall be five cents ($.05) for every ton of waste either stored or brought into the city, and an additional five cents ($.05) for every ton of recycled waste removed from the city.
B. On the first of each month, persons subject to the license requirements of this section shall submit an accounting showing the number of tons of waste brought into the city during the preceding month and the number of tons of recycled waste removed from the city in the preceding month, on forms prescribed by the license collector. The accounting shall be filed with the license collector and all moneys due shall be paid to the license collector on the first of each month. Should the first fall on a holiday or weekend, the accounting and payment shall be due on the next following workday.
C. Should the licensee fail to file the accounting and make payments as prescribed in this section, the license collector shall impose penalties as prescribed by Section
5.24.070. The license collector may institute license revocation proceedings as set forth in Section 5.16.120 for failure to make payments due under this section within five days after demand.
(Ord. 232 § 7-18, 1977)
5.20.190 - Auto wreckers
Every person conducting the business of auto wrecking shall pay the annual license fee of two hundred dollars ($200.00).
(Ord. 232 § 7-19, 1977)
5.20.200 - Taxicabs
Every person engaging in the business of operating a taxicab shall pay the annual license fee of five dollars ($5.00) per vehicle.
(Ord. 232 § 7-20, 1977)
4907-4148-6777 v1
5.20.210 - Commercial kennels
The annual license fee for each kennel in the city, both commercial and noncommercial, shall be twenty-five dollars ($25.00) for the first ten dogs kept or proposed to be kept, and five dollars ($5.00) for each additional dog in excess of ten to be kept on the premises. (Ord. 232 § 7-21, 1977)
5.20.220 - Outdoor advertising
Every person engaging in the business of outdoor advertising shall pay, as an annual license fee, a sum of eight percent (8%) of actual gross receipts as defined in Section 5.04.110 of this code; however, any person who maintains a double-faced, 20 x 60 foot (or equivalent square footage) painted bulletin outdoor advertising structure within the limits of this city shall pay a minimum fee of eighteen thousand dollars ($18,000.00) per year. (Ord. 290 § 1(part), 1983; Ord. 232 § 7-22, 1977)
5.20.230 - Mechanical amusement devices
Any person carrying on the business of distributing or operating mechanical amusement devices, as defined in Chapter 5.44, shall pay annual license fees as follows:
A. The distributor of mechanical amusement devices shall pay the annual license fee of one hundred dollars ($100.00).
B. An operator of mechanical amusement devices shall pay an annual license fee per premises of operations of six percent (6%) of gross receipts, with the maximum annual fee per premises of three hundred fifty dollars ($350.00). (Ord. 232 § 7-23, 1977)
5.20.235 - Peddlers, hawkers, and street vendors
A. Every person carrying on the business of a peddler of any goods, wares, or merchandise shall pay a license tax of twenty-five dollars ($25.00) per day in advance.
B. For purposes of this section, "peddler" means every person not having a regularly established place of business in the city, who travels from place to place or has a stand upon any public street, alley, or other public place, doorway of any building, or unenclosed or vacant lot or parcel of land, who sells or offers for sale any goods, wares, or merchandise in the person's possession.
(Ord. No. 676, § 3, 12-15-22)
5.20.240 - Residential business license tax
A. A residential business license tax is imposed solely for revenue purposes on the development and construction of all residential structures in the sum of fifty cents ($.50) per square foot of gross floor area of the dwelling unit. No such tax shall be imposed upon the development or construction of any single-family residential unit for which a building permit has been issued.
B. Unless and until the city council adopts a resolution directing that the business license tax authorized by subsection A be collected, a moratorium is established on the collection of the business license taxes authorized by subsection A. Except as otherwise provided herein, subsection A shall remain in full force and effect.
(Ord. 250 § 2, 1979; Ord. 240 § 1, 1978; Ord. 232 § 10-4, 1977)
5.20.250 - Due dates for payment of fees
Unless otherwise specifically provided:
A. All annual license fees shall be due and payable in advance on the first day of January of each year;
4907-4148-6777 v1
B. All semiannual license fees shall be due and payable in advance on the first day of January and July of each year;
C. All quarterly license fees shall be due and payable in advance on the first day of January, April, July, and October of each year;
D. All monthly license fees shall be due and payable on the first day of each month succeeding the licensed period;
E. All weekly license fees shall be due and payable on the first Monday following the licensed period; and
F. All daily flat-rate license taxes shall be due and payable each day in advance. (Ord. 232 § 3-3, 1977)
5.20.260 - License fees for less than full period
License fees for less than the full license period shall be prorated on the basis of the number of months or fraction thereof remaining in such period.
(Ord. 232 § 3-4, 1977)
City Council Staff Report
Meeting Date: July 16, 2026
From: Christina Fernandez, Assistant City Manager, Angel Ibarra, Administrative Management Analyst, Jeremy
Dennis, City Manager
Subject: Discussion of Illegal Dumping Fees
Recommendation
Staff recommend the City Council:
1. Receive a report on efforts made to curb illegal dumping in San Mateo County; and
2. Provide direction on potential updates to the City's enforcement structure, including the potential to increase penalties and create a dedicated illegal dumping ordinance.
Background
In March 2026, Mayor Pro Tem Davis requested staff explore increasing civil penalties for illegal dumping, citing an increase in illegal dumping throughout the City. Staff agreed to research enforcement mechanisms of neighboring cities and confer with the City Attorney on potential changes to the City's enforcement tools.
Illegal dumping continues to impact public rights of way, open spaces, and private property in Brisbane and throughout San Mateo County. Cities use a combination of administrative citations, nuisance abatement, and cleanup cost recovery to deter and address illegal dumping.
State Law Framework for Illegal Dumping Penalties
General Law cities rely on California Penal Code 374.3, which establishes statewide criminal penalties for illegal dumping. These penalties are as follows:
• First offense: $250-$1,000
• Second offense: $500-$1,500
• Third offense: up to $3,000 (may be higher due to SB 1230) Commercial quantities carry penalties of a minimum of $1,000 to $3,000 and up to $10,000— $15,000 for repeat business offenses. Hazardous waste or sensitive habitat impacts may include civil settlements up to $28,000. Additionally, violators are responsible for total clean-up costs, hauling and disposal fees, and double fines for tire dumping.
Brisbane utilizes the State Code section penalties.
Comparison of Illegal Dumping Penalties in San Mateo County Most San Mateo County cities rely on standard administrative citation schedules in response to illegal dumping. The fines are typically $100 for the first offense, $200 for the second offense, and $500 for the third offense. In addition, typically violators are also required to pay for staff time, equipment, disposal fees, and administrative overhead.
Daly City
Daly City repealed and replaced Chapter 8.32 (Illegal Dumping and Littering) of their municipal code to protect private and public property from illegal dumping. Subsequently, Daly City created the C.L.E.A.N program, which addresses illegal dumping by using the 4 E's: education, engagement, enforcement, and eradication. The administrative citations are specific to certain categories. Penalties for illegal dumping were increased to $1,000 for the first violation, $2,500 for the second, and $5,000 for the third violation with a clean-up notice of 24 hours. For property owners who fail to abate, the first penalty is $1,000, the second penalty is $3,000, and the third penalty is $3,000 with a clean-up notice of 72 hours. For major violations, the first citation is $5,000, the second is $7,500, and the third is $10,000. The C.L.E.A.N program also has a dedicated hotline to report illegal dumping and an app for service requests.
Redwood City
Redwood City Municipal Code 14.5 prohibits dumping, placing, or burying garbage, trash, rubbish, manure, or other waste matter anywhere in the city. Illegal dumping may be penalized with fines of up to $1,000 for the first offense. However, per the municipal code, there is a structure for administrative fines including $100 for the first offense, $200 for the second offense, and $500 for the third or subsequent offense committed within 12 months of the first offense. There is not a standalone dumping ordinance, only administrative citations and penalties. Residents may report illegal dumping by contacting code enforcement by phone or email.
San Bruno
The San Bruno Municipal Code (Title 5) defines nuisances and violations as those conditions and uses that are detrimental to public health, safety and welfare, that promote blight, or which reduce property values in the City. The Municipal Code also specifies regulations that will promote the sound maintenance of property and the enhancement of conditions of appearance, habitability or occupancy, and safety of all structures in the City. Illegal dumping is considered a common nuisance violation and is handled by code enforcement that occurs on private property. Other city departments deal with nuisances in the public right of way or on public facilities. Residents may report illegal dumping by calling the city. Similar to the other cities, administrative fines are $100 for the first offense, $200 for the second offense, and $500 for the third violation.
San Mateo
Chapter 17.08.20 of the City of San Mateo Municipal Code prohibits placing objects anywhere on the public right of way, street, or sidewalk. Further, Chapter 7.32.060 states that "no person shall dump or place any solid waste upon any lot, land or street, unless such lot, land or street has first been approved as a dumping ground by the Council." Administrative penalties are $100 for the first violation, $200 for the second violation and $500 for a third violation. Residents may report illegal dumping by calling the police department if they witness illegal dumping.
Should a resident discover illegal dumping, they may contact the city's public works department.
South San Francisco
Chapter 8.20.30 of the South San Francisco Municipal Code states that "It is unlawful and a violation of this code and this chapter for any person to illegally dump discarded items or waste matter or cause discarded items or waste matter not to be disposed of as otherwise provided by this code or state or federal law." Violators are subject to enforcement through civic action and administrative penalties. Illegal dumping is a misdemeanor and punishable by a fine of up to $1,000 per violation, in addition to any administrative or civil penalties. Violators may also be assessed costs relating to illegal dumping, which may include the cost of abatement, the cost for loss of use of the property on which the dumping occurred, costs of investigation, attorneys' fees and investigation fees, and any other damages permissible under state and federal law.
Summary table of above analysis:
Jurisdiction 1st
Violation
2nd
Violation
3rd+
Violations
Maximum
Penalty per
occurrence
Standalone
Illegal
Dumping
Ordinance
San Mateo
County
(Unincorporated)
$100 $100–
$500
Up to
$500
Up to
$3,000
Yes
(Ordinance
No. 04756)
Daly City $1,000 $2,500 $5,000 $5,000 Yes
(Chapter
8.32;
adopted by
Ordinance
No. 1441
(2020))
Redwood City $100 $200 $500 Up to
$1,000
No
City of San
Mateo
$100 $200 $500 $500 No
City of San
Bruno
$100 $200 $500 $500 No
South San
Francisco
$100 $200 $500 Varies;
cost
recovery
authorized
Yes
(Chapter
8.20;
adopted by
Ordinance
No. 1579
(2019))
Brisbane Illegal Dumping Enforcement
Illegal dumping in Brisbane is governed by Title 8 (Health and Safety) and Title 9 (Public Peace, Morals and Welfare). The title defines public nuisances, health hazards, and prohibited activities, but does not contain a standalone chapter specific to illegal dumping. Currently, the City enforces illegal dumping through administrative citations, nuisance abatement powers, and cleanup cost recovery. Chapter 8.16 of the Municipal Code is known as the Brisbane Antilitter Ordinance and requires the "placement of litter in receptacles or in authorized private receptacles to prevent litter from being deposited upon any street, sidewalk, or other public place upon private property." Administrative citations under Chapter 1.16.060 applies $100 for the first citation, $200 for a second citation for the same violation within 12 consecutive months, and $500 for each additional citation for the same violation within 12 consecutive months. Brisbane's citation structure aligns with other San Mateo County cities. Most San Mateo County cities rely on administrative citations.
The City remains committed to curbing illegal dumping through ongoing enforcement, maintenance, and cleanup efforts. During FY 2024/25, the City removed approximately 7.11 tons of illegally dumped material from the public right of way through its on-call cleanup program, as documented in the City's FY 2024/25 Annual Stormwater Report. During the same reporting period, the City received 79 service requests related to illegal dumping through the MyBrisbane Service Request system. This figure reflects requests submitted by the public and does not include incidents that may have been identified and addressed by City staff or contractors during routine maintenance activities. Illegal dumping occurs throughout the community, with recurring cleanup efforts in areas such as Tunnel Avenue and Lagoon Way, Beatty Avenue and Alana Way, Fisherman's Park, and other public rights of way. These ongoing response efforts require staff time and City resources to investigate, coordinate cleanup, and restore affected public spaces.
Discussion
There are various options available to the City Council to curb illegal dumping.
1. One option is to adopt higher administrative citation penalties. As noted earlier, currently citations range from $100 to $500 per citation occurrence. Administrative penalties vary by jurisdiction and do not require a nexus study as they are not fees. The City may implement administrative citation penalties under the City's police power authority, which authorizes cities to impose administrative fines for violations of municipal codes. Penalities that do not require cost justification include those adopted by ordinance, consistent with constitutional limits, and are reasonably related to deterrence and enforcement. The increase in penalties may be made through a simple ordinance amendment.
2. Another option is to adopt a dedicated illegal dumping ordinance modeled after other municipalities, such as the County of San Mateo. This would not only increase fines but also define dumping categories and major violations (such as appliances and commercial loads). It may also strengthen the City's enforcement authority.
The County of San Mateo's Illegal Dumping Ordinance (Chapter 3.50) was created to protect public and private property by strengthening penalties and enforcement tools to deter illegal dumping in incorporated areas. The Board of Supervisors found that illegal dumping creates blight, poses health and safety risks, harms neighborhoods and decreases property values, and requires enhanced deterrence and cleanup mechanisms.
Chapter 3.50 gives detailed definitions of illegal dumping, defining specific penalties for major violations involving dumping a commercial quantity, harmful waste matter, furniture, appliances, universal or electronic waste. If a person commits a major violation, that person is cited and given notice to remove the illegal dumped waste. If they fail to remove the waste within 24 hours, they are cited with an administrative penalty of $3,000. The Ordinance also provides that dumping multiple items, such as dumping both a mattress and an appliance, would constitute two separate major violations, subject to penalties of $3,000 per item. The owner of the vehicle used during an illegal dump may also be held liable. When there is an eviction or vacation of a renal property, there is also a provision that requires a property owner to ensure that any former tenant's property is either retained by the tenant or properly disposed of in accordance with law.
Should the City wish to pursue adoption of an illegal dumping ordinance, staff would work with the City Attorney to craft an ordinance that would increase administrative penalities, categorize major violations based on the items dumped, and explore liability for the vehicles used in an illegal dump. The ordinance may also have provisions requiring property owners to dispose of or retain a former tenant's property in the case of vacation of a unit.
3. Alternatively, the City may wish to continue to enforce illegal dumping through its current
enforcement structure and no additional action will be taken.
The City has various tools at its disposal. It may increase administrative fines through an ordinance amendment to the existing fine structure, and it may create a more comprehensive, standalone illegal dumping ordinance. The illegal dumping ordinance would provide a comprehensive approach to illegal dumping, including not only the increase in administrative fines, but also the categorization of major violations and culpability for vehicles used during an act of illegal dumping and increased responsibilities for property owners.
Fiscal Impact
The fiscal impact is dependent on Council direction.
Attachments
None
City Manager Approval
Jeremy Dennis, City
Manager
07/07/2026
City Council Staff Report
Meeting Date: July 16, 2026
From: Jeremy Dennis, City Manager, Christina Fernandez, Assistant City Manager
Subject: Selection of two alternate representatives to the North County Fire Authority JPA Board of Directors
Recommendation
Staff recommend the City Council select two alternate representatives to the North County Fire Authority Joint Powers Authority Board, and assign one alternate to Attend an Upcoming Meeting of the NCFA Board
Background
The cities of Brisbane and Pacifica formed the North County Fire Authority in June 2001, establishing a joint powers agency known as the North County Fire Authority (NCFA). Brisbane and Pacifica amended the JPA agreement in 2003 to allow admission of additional member agencies to the NCFA. In October 2003, Daly City became a member of NCFA. The JPA agreement was last amended on April 24, 2012 (Attachment 1).
Discussion
Section Six of the Joint Powers Authority Agreement provides that each Member Agency’s City Council shall appoint two representatives and two alternates to serve on the Authority’s Board of Directors. The Board must also elect one of its members as Chairperson and another as Vice Chairperson. At present, Mayor Pro Tem Davis and Councilmember O’Connell serve as the City’s representatives on the NCFA JPA Board, and the City has no designated alternates. To ensure uninterrupted City participation and decision-making when primary board members are unavailable due to illness, conflict, travel or emergencies, staff recommends that the City Council appoint two alternate representatives to the North County Fire Authority Joint Powers Authority Board.
Staff recommends assigning two alternates to the NCFA board, and assigning one to attend an upcoming meeting of the NCFA Board as one board member is unable to attend.
Fiscal Impact
There is no fiscal impact.
Attachments
1. North County Fire Authority JPA - 4-24-2012
City Manager Approval
Jeremy Dennis, City
Manager
07/07/2026
City Council Staff Report
Meeting Date: July 16, 2026
From: Jeremy Dennis, City Manager, Christina Fernandez, Assistant City Manager
Subject: Appointment of member to the Baylands Subcommittee Recommendation
Staff recommend that the City Council appoint a member to the Baylands Subcommittee in order to ensure the continuity of work during the development agreement process.
Background
The City Council’s Baylands Subcommittee is a two-member working group that supports the City of Brisbane’s ongoing Baylands planning and negotiations. Its work includes reviewing draft environmental documents, the Baylands Specific Plan, landfill remediation issues, infrastructure planning, habitat considerations, and coordinating with relevant City departments. Serving in an advisory role, the subcommittee provides recommendations to the full City Council and is re-appointed periodically to ensure continuity and consistent oversight throughout the multi-year Baylands process.
Discussion
One subcommittee member, Councilmember O'Connell, is unable to continue on the Baylands Subcommittee due to a schedule conflict. To maintain continuity throughout the development agreement process, staff recommends that the City Council appoint a member to the Baylands Subcommittee to replace Councilmember O'Connell. The subcommittee will shortly begin its work on the creation of a development agreement and addressing any related issues that may arise.
Fiscal Impact
There is no fiscal impact.
Attachments
None
City Manager Approval
Jeremy Dennis, City
Manager
07/09/2026
City Council Staff Report
Meeting Date: July 16, 2026
From: Jeremy Dennis, City Manager, Christina Fernandez, Assistant City Manager
Subject: Discussion of Changing the Day of the Week for Council Meetings
Recommendation
Staff recommend the City Council discuss potential changes to Chapter 2.44 of the Municipal Code relating to Public Meetings including:
1. Changing regular City Council meeting days from the first and third Thursday of the month to another day of the week
2. Adoption of any future changes to Chapter 2.44 by resolution rather than by ordinance
3. Flexibility around location of public meetings
Background
Chapter 2.44 of the City’s Municipal Code stipulates that regular City Council meetings shall be held on the first and third Thursdays of each month at 6:30 p.m. Brisbane is currently the only jurisdiction in San Mateo County whose City Council convenes on Thursdays, which results in conflicts with the meeting schedules with a number of regional and county-led boards and commissions.
At present, any modification to the date, time, or location of regular City Council meetings must be enacted by ordinance. Staff recommends amending the Ordinance to allow Council to make certain decisions by resolution, which would provide needed operational flexibility.
Furthermore, Section 2.44.020 specifies that all regular City Council meetings must be held in the Brisbane Community Room. To enhance adaptability and ensure continuity of government operations in the event of an emergency, staff recommends amending the Ordinance to allow flexibility regarding the permissible locations for regular public meetings.
Discussion
Many councilmembers also serve on regional and county boards and commissions, numerous of which convene on Thursday evenings. To support councilmembers’ ability to participate in these important regional and county bodies, staff recommends that the Council provide direction on whether to prepare an amendment to Chapter 2.44 that moves the City Council’s regular meetings from the first and third Thursday of each month to another day of the week.
It is also worth noting that the majority of cities and towns in San Mateo County hold their City Council meetings on Mondays or Tuesdays, thereby allowing most elected officials within the
county to engage in regional and county board activities on other days. For a list of San Mateo County cities' regular Council meeting schedules, please see Attachment 1.
Under the current Municipal Code, any change to the date, time, or location of regular City Council meetings must be enacted by ordinance. Staff recommends revising this requirement to allow such adjustments to be adopted by resolution, which would provide greater operational flexibility for both Council and staff.
Finally, staff recommends that the Council consider allowing additional flexibility regarding the locations at which regular public meetings may be held. This change would support continuity of government operations in the event of emergencies or other unforeseen circumstances.
Staff recommend the City Council provide guidance to staff on these three items. Should the Council determine that these changes are appropriate, staff will return with an amended ordinance reflecting the recommended revisions.
Fiscal Impact
There is no fiscal impact.
Attachments
1. San Mateo County Cities Regular Meeting Schedules
City Manager Approval
Jeremy Dennis, City
Manager
07/09/2026
San Mateo County Cities | City Council Regular Meeting Schedules • Belmont – 2nd & 4th Tuesdays at 7:00 PM
• Brisbane – 1st & 3rd Thursdays at 6:30 PM
• Burlingame – 1st & 3rd Mondays at 7:00 PM
• Daly City – 2nd & 4th Mondays at 7:00 PM
• East Palo Alto – 1st & 3rd Tuesdays at 6:30 PM
• Foster City – 1st & 3rd Mondays at 6:30 PM
• Half Moon Bay – 1st & 3rd Tuesdays at 7:00 PM
• Menlo Park – 2nd & 4th Tuesdays at 6:00 PM
• Millbrae – 2nd & 4th Tuesdays at 7:00 PM
• Pacifica – 2nd & 4th Mondays at 6:00PM
• Redwood City – 2nd & 4th Mondays at 6:00PM
• San Bruno – 2nd & 4th Tuesdays at 7:00PM
• San Carlos – 2nd & 4th Mondays at 7:00PM
• San Mateo – 1st & 3rd Mondays at 7:00 PM
• South San Francisco – 2nd & 4th Wednesdays at 6:30PM
San Mateo County Towns
• Atherton – Third Wednesdays at 6:00PM
• Colma – 2nd & 4th Wednesdays at 7:00PM
• Hillsborough – 2
nd Mondays at 6:00 PM
• Portola Valley – 2nd & 4th Wednesdays at 7:00PM
• Woodside – 2nd & 4th Tuesdays at 7:00PM
City Council Staff Report
Meeting Date: July 16, 2026
From: Ingrid Padilla, City Clerk
Subject: Recruitment Update
Recommendation
Staff recommend beginning recruitment to fill 1 vacant seat for a term expiring in January 2029 on the Open Space and Ecology Committee (OSEC).
Background
On July 8, 2026, Councilmembers received correspondence from Rohendra Atapattu informing them of his resignation as a Committee Member of the Open Space and Ecology Committee.
His term was to expire on January 2029.
Discussion
Staff is proposing to have the recruitment period to fill the OSEC vacancy starting July 17, 2026 and ending August 31, 2026. Councilmembers can interview applicants in September 2026 and the newly appointed OSEC Committee Member can be sworn in as early as the City Council Meeting of September 17, 2026.
Fiscal Impact
None.
Attachments
None
City Manager Approval
Jeremy Dennis, City
Manager
CITY of BRISBANE
Council Subcommittee Update
From June 13th, 2026, to July 10th, 2026
1. Report Out on Subcommittees/Committees
A. Baylands Subcommittee 7/1 Lentz, O’Connell
The subcommittee received an informational report regarding implementation of the proposed water service framework identified in the Baylands Specific Plan and provided a status update on ongoing coordination efforts. Staff and the subcommittee discussed policy considerations that may help inform future discussions with CalWater and other project partners, the responsibility of building the infrastructure and revisited the recycled water facilities and wastewater flows necessary to support recycled water production.
Next steps #1: Staff to investigate whether the Water Balance Study was completed, as identified in the Sustainability Framework on page 56.
Next steps #2: Staff will continue to work with the project partners.
To view the agenda packet:
https://brisbaneca.portal.civicclerk.com/event/6913/files/agenda/10421
2. Upcoming Subcommittees:
SPP Parks & Open Space Subcommittee 7/13 2:30pm Kern, Lentz Beautification Subcommittee 7/13 4pm Davis, Kern
Sea Level Rise Subcommittee 7/15 4pm Lentz, Mackin
Planning Issues Subcommittee 7/21 3:30pm Kern, Mackin
Housing Subcommittee Early/mid August Davis, Lentz
Brisbane School District & City 2x2 8/13 5pm Davis, Lentz
3. Proposed Subcommittees:
Does any councilmember wish to propose any items for a subcommittee to discuss?