Carmel-by-the-Sea City Council
May 16, 2023

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
K. Long-Term Liabilities
In the government-wide financial statements and proprietary fund statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental or business-type activities.

Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs are expensed in year incurred.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

L. Benefit Plans
Pension Expense
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (the Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS.

For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Other Postemployment Benefit (OPEB) Expense
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense information about the fiduciary net position of the City’s Retiree Benefits Plan (the OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the OPEB Plan. For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms.

M. Fund Balances
In accordance with Government Accounting Standards Board 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City classifies governmental fund balances as follows:

Nonspendable
Nonspensable fund balance includes fund balance amounts that cannot be spent either because it is not in spendable form or because of legal or contractual constraints.

Restricted
Restricted fund balance includes fund balance amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors or amounts constrained due to constitutional provisions or enabling legislation.

Committed
Committed fund balance includes fund balance amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision-making authority and does not lapse at year-end. Committed fund balances are imposed by the City Council, the

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
City’s highest level of decision-making authority, for specific purposes pursuant to constraints imposed by formal action taken such as resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting periods; however the amount can be determined subsequently.

Assigned
Assigned fund balance includes fund balance amounts that are intended to be used for specific purposes that are neither considered restricted or committed. Fund balances may be assigned by the City Council and the City Manager.

Unassigned
The Unassigned Fund Balance category represents fund balance which may be held for specific types of uses or stabilization purposes, but is not yet directed to be used for a specific purpose. The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds it is not appropriate to report a positive unassigned fund balance amount. However, in governmental funds other than the general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

The detail of amounts reported for each of the above defined fund balance categories is reported in the governmental funds balance sheet and in the combining nonmajor fund balance sheets.

Flow Assumption / Spending Order Policy
When expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to be spent first. When expenditures are incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to be spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City Council has directed otherwise.

N. Net Position
In the government-wide financial statements, net position is classified in the following categories:

Net Investment in Capital Assets
This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that are attributed to the acquisition, construction, or improvement of the assets. In addition, deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt also are included in the net investment in capital assets component of net position
Restricted Net Position
This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.

Unrestricted Net Position
This amount is all net position that does not meet the definition of "net investment in capital assets" or "restricted net position."

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
The detail of amounts reported for each of the above defined net position categories is reported in the government-wide Statement of Net Position.

Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first.

Interfund Transactions
Interfund services provided and used are accounted for as revenue, expenditures or expenses, as appropriate. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursed fund. All other interfund transactions, except for interfund services provided and used and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as transfers.

O. Property Taxes
County tax assessments include secured and unsecured property taxes and special assessments. "Unsecured" refers to taxes on personal property. These tax assessments are secured by liens on the property being taxed.

Secured property taxes are levied on or before the first day of July of each year. They become a lien on real property on January 1 proceeding the fiscal year for which taxes are levied. These taxes are paid in two equal installments; the first is due November 1 and is delinquent with penalties after December 10; the second is due February 1 and delinquent with penalties after April 10. Secured property taxes, which are delinquent and unpaid as of June 30, are declared to be tax defaulted and are subject to redemption penalties, cost, and interest when paid. If the delinquent taxes are not paid at the end of five years, the property is sold at public auction and the proceeds are used to pay the delinquent amounts due. Any excess is remitted, if claimed, to the taxpayer. Additional tax liens are created when there is a change in ownership of property or upon completion of new construction. Tax bills for these new tax liens are issued throughout the fiscal year and contain various payments and delinquent dates, but are generally due within one year. If the new tax liens are lower, the taxpayer receives a tax refund rather than a tax bill. Unsecured personal property taxes are not a lien against real property. These taxes are due on January 1 each year and are delinquent, if unpaid, on August 31.

The County apportions secured property tax revenue in accordance with the alternate methods of distribution, the “Teeter Plan”, as described by Section 4717 of the California Revenue and Taxation code. Therefore, the City receives 100 percent of the secured property tax levies to which it is entitled, whether or not collected. Unsecured delinquent taxes are considered fully collectible.

P. Budgetary Information
In accordance with applicable sections of the California Government Code and the Carmel-by-the-Sea Municipal Code, the City prepares and legally adopts an annual balanced budget on a basis consistent with accounting principles generally accepted in the United States of America. Annual appropriated budgets are adopted for the General Fund, Special Revenue Funds, Capital Projects Funds and the Debt Service Fund.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
Budgetary control is legally maintained at the fund level for these funds. Department heads submit budget requests to the City Administrator. The City Administrator prepares an estimate of revenues and prepares recommendations for the next year’s budget. The preliminary budget may or may not be amended by the City Council and is adopted by resolution by the City Council on or before June 30 in accordance with the municipal code.

The City Council may amend the budget by motion during the fiscal year. Only the Council can authorize transfers between funds and approve inter-fund loans. The City Administrator is authorized to transfer budgeted amounts within a fund without formal council action or approval. The City Administrator is authorized to increase expenditures in relation to revenues in funds receiving assigned revenues without approval by the City Council.

Expenditures may not legally exceed appropriations at the fund level, which is the legal level of control.

Supplemental appropriations, which increase appropriations, may be made during the fiscal year.

Appropriations, except open project appropriations, and unexpended grant appropriations, lapse at the end of each fiscal year.

Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller or 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, 2022, based on calculations by City management, proceeds of taxes did not exceed appropriations.

Q. Encumbrances
Under encumbrance accounting, purchase orders, contract and other commitments for expenditures are recorded in order to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary integration in all funds. All appropriations, except open project appropriations, and unexpended grant appropriations and encumbrances, lapse at year end. Valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are re-appropriated and become part of the subsequent year’s budget pursuant to state regulations.

R. Unearned Revenue
Unearned revenue arises when assets are received before revenue recognition criteria have been satisfied.

Grants and entitlements received before eligibility requirements are met are recorded as deferred inflows from unearned revenue. In the governmental fund financial statements, receivables associated with nonexchange transactions that will not be collected within the availability period have been recorded as deferred inflows from unavailable revenue.

S. Use of Estimates
The preparation of basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
T. Implemented New Accounting Pronouncements
GASB Statement No. 87, Leases
The objective of this statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. As of June 30, 2022, the management did not identify any material leases that were required to be reported under GASB 87.

U. Upcoming New Accounting Pronouncements
The City is currently analyzing its accounting practices to determine the potential impact on the financial statements of the following recent GASB Statements:

GASB Statement No. 91, Conduit Debt Obligations
The objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement also clarifies the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitment and voluntary commitments extended by issuers and arrangements associated with the debt obligations; and improving required note disclosures. The requirements of this Statement were initially to be effective for financial statements for periods beginning after December 15, 2020 but have been delayed to periods beginning after December 15, 2021, pursuant to GASB Statement No. 95.

Earlier application is encouraged.

GASB Statement No. 94, Public-Private Partnerships and Public-Public Partnerships and Availability Payment Arrangements
The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Some PPPs meet the definition of a service concession arrangement (SCA), which the Board defines in this Statement as a PPP in which (1) the operator collects and is compensated by fees from third parties; (2) the transferor determines or has the ability to modify or approve which services the operator is required to provide, to whom the operator is required to provide the services, and the prices or rates that can be charged for the services; and (3) the transferor is entitled to significant residual interest in the service utility of the underlying PPP asset at the end of the arrangement.

This Statement also provides guidance for accounting and financial reporting for availability payment

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
arrangements (APAs). As defined in this Statement, an APA is an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction. The requirements of this Statement are to be effective for financial statements for periods beginning after June 15, 2022. Earlier application is encouraged.

GASB Statement No. 96, Subscription-Based Information Technology Arrangements GASB 96 provides guidance on accounting for Subscription-Based Information Technology Arrangements (SBITA) where the government contracts for the right to use another party’s software. The standards for SBITAs are based on the standards established in GASB Statement No. 87, Leases. GASB 96 is effective for fiscal years beginning after June 15, 2022.

GASB Statement No. 99, Omnibus 2022
Omnibus statements are issued by GASB to address practice issues identified after other standards have been approved for implementation. Omnibus statements “clear up the loose ends” for recent prior statements GASB has issued. This Omnibus addresses recent pronouncements, including GASB 87 – Leases, GASB 94 – Public-Private and Public-Public Partnerships and Availability Payment Arrangements, and GASB 96 – Subscription-Based Information Technology Arrangements.

Effective Date: The requirements of this Statement are effective as follows:
 The requirements related to extension of the use of LIBOR, accounting for SNAP distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement 34, as amended, and terminology updates related to Statement 53 and Statement 63 are effective upon issuance  The requirements related to leases, PPPs, and SBITAs are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter.  The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter.

Earlier application is encouraged and is permitted by topic.

GASB Statement No. 100, Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62
This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. This Statement also prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections in previously issued financial statements.

The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter. Earlier application is encouraged.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
GASB Statement No. 101, Compensated Absences
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 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. The requirements of this Statement are effective for fiscal years beginning after December 15, 2023, and all reporting periods thereafter.

NOTE 2 - CASH AND INVESTMENTS
As of June 30, 2022, cash and investments were reported in the financial statements as follows:

Pooled cash and investments $ 27,504,925
Total cash and investments $ 27,504,925
The following summarized cash and investments by type:

Cash on hand $ 1,545
Demand Deposits 19,414,271
Investments 7,146,481
Restricted cash with fiscal agent 942,628
Total cash and investments $ 27,504,925
The City follows the practice of pooling cash and investments of all funds except for funds required to be held by fiscal agents under provisions of bond indentures. Interest income earned on pooled cash and investments is allocated monthly to the various funds based on monthly cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
A. Cash Deposits
The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest, and places the City ahead of general creditors of the institution. The market value of pledged securities must equal at least 110 percent of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes that have a value of 150 percent of the City's total cash deposits. The City has waived the collateral requirements for cash deposits which are fully insured to $250,000 by the Federal Deposit Insurance Corporation (FDIC). The bank balances before reconciling items totaled $20,805,712 at June 30, 2022 and were different from carrying amounts due to deposits in transit and outstanding checks. The amount uninsured was $20,555,712 which was collateralized by securities held by pledging financial institutions.

B. Fair Value Measurements
GASB 72 established a hierarchy of inputs to the valuation techniques above. This hierarchy has three levels:
 Level 1 inputs are quoted prices in active markets for identical assets or liabilities.  Level 2 inputs are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other than quoted prices that are not observable.
 Level 3 inputs are unobservable inputs, such as a property valuation or an appraisal.

C. Investment Policies
City Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of bond indentures of the City, rather than the general provisions of the California Government Code or the City’s investment policy.

Maximum
Maturity
Maximum
Percentage
of Portfolio
Maximum
Investment in
One Issuer
United States (U.S.) Treasury Issues 5 years None None
U.S. Government Agency Securities 5 years 50% 50%
California State and Local Bonds, Notes, & Warrants None None None Bankers Acceptance 180 days 40% 30%
Commercial Paper 270 days 15% 10%
Medium Term Corporate Notes 5 years 30% 30%
Negotiable Certificates of Deposit 5 years 30% 30%
Repurchase Agreements 92 days None None
Passbook Savings/Money Market None 20% 10%
Local Agency Investment Fund (LAIF) N/A None None
Federal Instrumentalities None None None
Authorized Investment Type

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
Authorized Investments - Debt Agreements
Investments held by bond fiscal agents (trustees) are governed by the provisions of the underlying indenture agreements rather than the general provisions of the City’s investment policy or California Government Code. The indenture agreements identify the following permitted investments:

Maximum
Maturity
Maximum
Percentage
of Portfolio
Maximum
Investment in
One Issuer
United States (U.S.) Treasury Issues None None None
U.S. Government Agency Securities None None None
Banker's Acceptance 360 days None None
Commercial Paper 270 days None None
Money Market Funds None None None
Investment Agreements None None None
Local Agency Bonds None None None
Medium Term Notes None None None
Negotiable Certificate of Deposits None None None
Local Agency Investment Fund (LAIF) N/A None None
Authorized Investment Type
D. External Investment Pool
The City's investments with LAIF at June 30, 2022, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structured Notes
These are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities
The bulk of asset-backed securities are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables.

LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The approved investments policy is listed on the LAIF website, located at http://www.treasurer.ca.gov/pmia-laif/.

D. Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the term of an investment’s maturity, the greater the sensitivity to changes in market interest rates. It is the City’s practice to manage its exposure to interest rate risk is by

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
purchasing a combination of shorter and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for City’s operations.

Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of an investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization, Standards and Poor. As of June 30, 2022, the City’s investments were in compliance with the ratings required by the City’s investment policy, indenture agreements and Government Code.

Concentrations of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. As of June 30, 2022, the City had no investments in any one issuer (other than external investment pools which are exempt) that represented 5% or more of the total City investments.

Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments.

With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF).

As of June 30, 2022, the City’s investments had the following maturities and ratings:
12 Months or
Less 13 to 24 Months
25 to 36
Months Total Rating
Fair Value
Input Levels
LAIF (state pool) $ 5,308,422 $ - $ - $ 5,308,422 not rated n/a Money market funds 879,216 - - 879,216 AAA 1
Bonds - 250,327 - 250,327 AAA 1
Certificate of deposits - - 708,516 708,516 not rated 1 Total Investments $ 6,187,638 $ 250,327 $ 708,516 $ 7,146,481 Investment Type

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
NOTE 3 - ACCOUNTS RECEIVABLE
The following summarizes accounts receivable as of June 30, 2022:

Ambulance $ 450,201
Holstery Tax 817,962
Measure C 1,072,959
Grabage Franchise Tax 106,372
Sales and Use Tax 322,579
Other Accruals 366,681
Total Accounts Receivable $ 3,136,754
NOTE 4 - INTERFUND TRANSACTIONS
A. Inter-fund Receivables and Payables
Amounts due to or due from other funds reflect inter-fund balances for services rendered or short-term loans expected to be repaid in the next fiscal year. Advances to or from other funds are long-term loans between funds that are to be repaid in their entirety over several years. As of June 30, 2022, the General Fund was owed $13,317 from COPS Grant Fund.

Transfers In/Out
With Council approval, resources may be transferred from one fund to another. Transfers may be made to pay for capital projects or capital outlays, lease or debt service payments, operating expenses, and to finance various programs accounted for in other funds in accordance with budgetary authorizations. The following summarizes transfers between funds during the fiscal year ended June 30, 2022:

Fund Transfer in Transfer out
General Fund $ 3,074,825 $ 1,432,910
Measure C Sales Tax Fund - 4,206,660
Capital Projects Fund 1,206,728 -
Internal Service Funds 1,036,821 79,980
Nonmajor Funds 936,441 535,265
Total Transfers $ 6,254,815 $ 6,254,815

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
NOTE 5 - CAPITAL ASSETS
Capital assets for governmental activities consisted of the following as of June 30, 2022:
` Balance Transfers/ Balance
Governmental Activities July 01, 2021 Additions Deletions June 30, 2022 Non-depreciable:

Land $ 5,101,641 $ - $ - $ 5,101,641
Construction in Progress 50,529 151,238 (150,409) 51,358 Total Non-Depreciable 5,152,170 151,238 (150,409) 5,152,999 Depreciable:

Buildings and improvements 26,424,331 430,033 32,209 26,886,573 Infrastructure 27,119,636 - 106,214 27,225,850
Vehicles 2,918,719 124,974 - 3,043,693
Technology/Hardware and Software 621,959 53,337 11,986 687,282 Machinery and equipment 2,901,429 38,876 - 2,940,305
Total Depreciable 59,986,074 647,220 150,409 60,783,703 Less Accumulated Depreciation for:

Buildings and improvements (11,335,086) (655,828) - (11,990,914) Infrastructure (8,169,860) (1,235,909) - (9,405,769)
Vehicles (2,755,984) (60,666) - (2,816,650)
Technology/Hardware and Software (501,616) (89,656) - (591,272) Machinery and equipment (2,602,636) (85,801) - (2,688,437) Total Accumulated Depreciation (25,365,182) (2,127,860) - (27,493,042) Total Depreciable Capital Assets - Net 34,620,892 (1,480,640) 150,409 33,290,661 Total Governmental Capital Assets $ 39,773,062 $ (1,329,402) $ - $ 38,443,660 Internal Service Funds (Inlcuded with Governmental Activities) Buildings and improvements $ 284,478 $ 430,033 - $ 714,511 Technology/Hardware and Software 607,507 53,337 - 660,844 Vehicle, Machinery and Equipment 961,609 163,850 - 1,125,459 Accumulated Depreciation (1,132,328) (172,676) - (1,305,004) Total Internal Service Funds - Net $ 721,266 $ 474,544 $ - $ 1,195,810 Depreciation expense was allocated to the following governmental activities:

General Government $ 83,036
Community Planning and Building 1,257
Public Safety 163,537
Public Works 1,299,369
Library 547,837
Community Activities 32,824
Total depreciation expense $ 2,127,860

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
NOTE 6 - NONCURRENT LIABILITIES
The City's noncurrent liabilities consisted of the following as of June 30, 2022:

Due
Beginning Ending Within One
Noncurrent Liabilities Balance Additions Deletions Balance Year Sunset Center LRB 3,895,000 - - 3,895,000 -
Sunset Center LRB Premium 866,901 - 28,897 838,004 28,897 Countywide Radio Project (Direct) 165,051 - - 165,051 16,753 Pension Obligation Bonds 1,340,000 - 660,000 680,000 680,000 Compensated Absences 598,095 457,762 469,558 586,299 450,000 Net Pension Liability 24,342,598 21,452,202 29,829,415 15,965,385 - Claims Liability 575,000 - - 575,000 57,500
Net OPEB Liability 4,140,591 932,515 1,435,969 3,637,137 - Total Noncurrent Liabilities $ 35,923,236 $ 22,842,479 $ 32,423,839 $ 26,341,876 $ 1,233,150 2020 Refunding Lease Revenue Bonds - Sunset Center
On September 23, 2020, the City issued $3,895,000 in 2020 Refunding Lease Revenue Bonds at a $866,901 premium with interest at 4%. The issuance costs were $183,992. The bonds were issued to refund the Sunset Center COPs and the aggregate difference in debt service between the refunding debt and the refunded debt was $1,042,418.

The net savings on the defeasance totaled $128,099. The annual debt service requirements were as follows:

Fiscal Year Ending June 30: Principal Interest Total
2023 $ - $ 155,800 $ 155,800
2024 355,000 155,800 510,800
2025 375,000 141,600 516,600
2026 380,000 126,600 506,600
2027 405,000 111,400 516,400
2028-2032 2,275,000 299,800 2,574,800
2033-2035 105,000 4,200 109,200
Total $ 3,895,000 $ 995,200 $ 4,890,200
Countywide Radio Project
In 2009, the City entered into a participation agreement with Monterey County to provide funding related to the "Next Generation Radio Project," a Federal Communications Commission mandated alteration of public safety and local government radio systems. Estimated payments will change should individual local jurisdictions elect out of the project.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
The annual debt service requirements were as follows:

Fiscal Year Ending June 30: Principal Interest Total
2023 $ 16,753 $ 5,559 $ 22,312
2024 25,057 4,607 29,664
2025 26,047 3,617 29,664
2026 27,076 2,588 29,664
2027 70,118 15,350 85,468
Total $ 165,051 $ 31,721 $ 196,772
Pension Obligation Bond
On November 29, 2012, the City issued $6,280,000 in 2012 Taxable Pension Obligation Bonds, the purpose of which was to fund certain PERS side fund obligations. The bonds bear an interest rate of

0.55% to 3.1% and mature on June 1, 2023. The annual debt service requirements were as follows:

Fiscal Year Ending June 30: Principal Interest Total
2023 $ 680,000 $ 21,080 $ 701,080
Total $ 680,000 $ 21,080 $ 701,080
Compensated Absences
The City records employee absences, such as vacation, illness, and holidays, for which it is expected that employees will be paid as compensated absences.

Net Pension Liability
In accordance with GASB Statement No. 68, the City has recorded its net pension liability of CalPERS benefits for retirees. Pension benefits and associated liabilities are paid from the General Fund. See Note 8 for further discussion on the net pension liability.

Claims Liability
The City has recorded a liability for potential claims in excess of amounts covered by the insurance pool.

See Note 7 for further discussion on the City’s risk management activities.

Net OPEB Liability
A net OPEB obligation is the cumulative differences between annual OPEB cost and an employer’s contributions to a plan. OPEB liabilities are paid from the General Fund. See Note 9 for further discussion on OPEB.

NOTE 7 - RISK MANAGEMENT
The City of Carmel-by-the-Sea (City) is a member of CSAC-EIA (California State Association of Counties Excess Insurance Authority) which is a shared risk pool. CSAC-EIA covers claims for City for both Workers Compensation and General Liability. The City’s Liability SIR is pre-funded through CSAC-EIA for 8 quarters of payments made on behalf of City. Currently, the SIR fund for the City with CSAC-EIA is maintained at $8,183. If the pre-funded SIR balance drops below this amount, the City is billed by CSAC-EIA to replenish the fund to the $8,183 level. The City does not make claim payments, they are all issued by the city's third-party administrator from a CSA-EIA account.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
The City has two layers of Liability coverage through CSAC-EIA and under the first layer, the Primary General Liability layer, there is an SIR (Self Insured Retention) of $10,000 per claim. Thereafter, the next layer of coverage kicks in (General Liability 1 program) which carries an SIR of $100,000 which is satisfied by exhausting the coverage limit of $100,000 under the Primary Liability program. The maximum limit of coverage under the primary General Liability 1 program is $25 million. The City retains the risk of loss above $25 million.

For Workers Compensation, the City is a member of both the CSAC-EI Primary Workers Compensation program and then, the CSAC-EIA Excess Workers Compensation program. The Primary Workers compensation program provides dollar 1 coverage to the City for Workers Compensation claims. In other words, City has no deductible or SIR. This layer of Workers Compensation coverage carries a maximum limit o $125,000 per occurrence. Thereafter, CSAC EIA's excess coverage steps in and the SIR (Self Insured Retention) is $125,000 which again, is satisfied by exhausting the limits of coverage under the Primary Workers Compensation program. The upper limit of coverage under the Excess Workers Compensation program is "statutory". What this means is that regardless of the total cost of the claim, it is covered under the CSAC-EIA Excess Workers Compensation program. There is absolutely no monetary exposure to the City under these two Workers Compensation programs except for the premium costs to purchase this coverage. The City has had no settlements which exceeded insurance coverage in the last three fiscal years and no significant changes or reductions in insurance coverage during the current year.

The following summarizes the change in the estimated liability over the last two fiscal years:

Year Ended Year Ended
June 30, 2022 June 30, 2021
Beginning of year $ 575,000 $ 575,000
Increase (decrease) in current year claims 34,226 3,218 Changes in estimates (33,628) 21,965
Claims paid (598) (25,183)
Ending balance 575,000 575,000
Current portion (57,500) (57,500)
Non-current portion $ 517,500 $ 517,500
NOTE 8 - RETIREMENT PLANS
General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s Employee Pension Plan (the Plan) which is a cost-sharing multiple employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). The plan includes different tiers for each class of employee under Miscellaneous and Safety provisions. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. The cost-of-living adjustments for the Plans are applied as specified by the Public Employees’ Retirement Law. The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows:

Tier 1 Tier 2 PEPRA
Hire date < 4/15/2012 >= 4/15/2012 >= 1/1/2013
Benefit formula 2% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 Years 5 Years 5 Years
Benefit payments Monthly for Life Monthly for Life Monthly for Life Retirement age 55 60 62
Monthly benefits as a % of eligible compensat2.0%ion to 2.5% 2.00% 2.00% Required employee contribution rates 7.00% 7.00% 6.75%
Required employer contribution rates 10.88% 8.65% 7.59% Contractual employee contribution rates 10.00% 10.00% 9.75% Contractual employer contribution rates 7.88% 5.65% 4.59% Miscellaneous
Tier 1 Tier 2 PEPRA
Hire date < 4/15/2012 >= 4/15/2012 >= 1/1/2013
Benefit formula 3% @ 50 2% @ 50 2.7% @ 57
Benefit vesting schedule 5 Years 5 Years 5 Years
Benefit payments Monthly for Life Monthly for Life Monthly for Life Retirement age 50 50 57
Monthly benefits as a % of eligible compensation2.00% 2.00% 2.00% Required employee contribution rates 9.00% 9.00% 13.00% Required employer contribution rates 23.71% 18.19% 13.13% Contractual employee contribution rates 12.00% 12.00% 16.00% Contractual employer contribution rates 20.71% 15.19% 10.13% Safety
Employees Covered
At June 30, 2022, the following employees were covered by the benefit terms for the Plans:

Miscellaneous Safety Total
Active 43 18 61
Transferred 24 21 45
Separated 36 14 50
Retired 115 56 171
Total 218 109 327

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rates are the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

For the year ended June 30, 2022, the following contributions were made:

Employer
Contributions
Miscellaneous $ 2,007,137
Safety 371,321
Total Employer Contributions $ 2,378,458
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2022, the City reported net pension liabilities for its proportionate shares of the net pension liability as follows:

Miscellaneous
Safety
Total
Proportionate Share of
Net Pension
Liability/(Asset)
$ 7,508,355
8,457,030
$ 15,965,385
The City’s net pension liability for the Plans is measured as the proportionate share of the net pension liability. The net pension liability of the Plans are measured as of June 30, 2021, and the total pension liability for the Plans used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for the Plans as of June 30, 2021 and 2021 was as follows:

Misc Safety Plan Total
Proportion - June 30, 2021 0.22373% 0.18571% 0.22373%
Proportion - June 30, 2022 0.29520% 0.24098% 0.29520%
Change - Increase/(Decrease) 0.07147% 0.05526% 0.07147% For the year ended June 30, 2022, the City recognized pension expense of $5,813,481.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions $ - $ -
Differences between Expected and Actual Experience 841,981 - Differences between Projected and Actual Investment Earnings - 6,554,397 Differences between Employer's Contributions and
Proportionate Share of Contributions - 722,309
Change in Employer's Proportion 207,208 70,979
Pension Contributions Made Subsequent to Measurement Date 2,007,137 - Total $ 3,056,326 $ 7,347,685
Miscellaneous
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions $ - $ -
Differences between Expected and Actual Experience 1,444,876 - Differences between Projected and Actual Investment Earnings - 5,033,559 Differences between Employer's Contributions and
Proportionate Share of Contributions - 690,803
Change in Employer's Proportion 449,643 16,789
Pension Contributions Made Subsequent to Measurement Date 371,321 - Total $ 2,265,841 $ 5,741,151
Safety
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions $ - $ -
Differences between Expected and Actual Experience 2,286,858 - Differences between Projected and Actual Investment Earnings - 11,587,956 Differences between Employer's Contributions and
Proportionate Share of Contributions - 1,413,112
Change in Employer's Proportion 656,851 87,768
Pension Contributions Made Subsequent to Measurement Date 2,378,458 - Total $ 5,322,167 $ 13,088,836
Plan Total
The City reported $2,378,458 as deferred outflows of resources related to contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended June 30, 2023.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Miscellaneous Safety Total
$ (1,462,491) $ (587,850) $ (2,050,341)
(1,473,666) (754,438) (2,228,104)
(1,551,042) (1,119,177) (2,670,219)
(1,811,297) (1,385,165) (3,196,463)
- - -
- - -
$ (6,298,496) $ (3,846,630) $ (10,145,127)
Deferred Outflows/(Inflows) of
Resources
Fiscal Year
Ending June 30:
2023
Total
2024
2025
2026
Thereafter
2027
Actuarial Assumptions
The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:

Valuation Date June 30, 2020
Measurement Date June 30, 2021
Actuarial Cost Method Entry-Age
Normal Cost
Method
Actuarial Assumptions:

Discount Rate 7.00%
Inflation 2.50%
Payroll Growth 2.75%
Projected Salary Increase (1)
Investment Rate of Return 7.00% (2)
Mortality (3)
(1) Varies by entry age and service
(2) Net of pension plan investment expenses, including inflation (3) Derived using CalPERS' membership data for all funds Discount Rate
The discount rate used to measure the total pension liability was 7.15%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested employer rate plans within the Plan that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested employer rate plans run out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The stress test results are presented in a detailed report, GASB Statements 67 and 68 Crossover Testing Report for Measurement Date June 30, 2018 based on June 30, 2017 Valuations, that can be obtained from the CalPERS website.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
According to Paragraph 30 of GASB 68, the long-term discount rate should be determined without reduction for pension plan administrative expense. For the CalPERS Plan, the 7.00% investment return assumption used in this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15 basis points. An investment return excluding administrative expenses would have been 7.15%. Using this lower discount rate has resulted in a slightly higher total pension liability and net pension liability. CalPERS checked the materiality threshold for the difference in calculation and did not find it to be a material difference.

In determining the long-term expected rate of return, CalPERS took into account both short- term and long-term market return expectations as well as the expected pension fund cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the Plan’s asset classes, expected compound (geometric) returns were calculated over the short-term (first 11 years) and the long-term (60 years) using a building-block approach. Using the expected nominal returns for both short-term and longterm, the present value of benefits was calculated for the Plan. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

Assumed
Asset Real Return Real Return
Asset Class (a) Allocation Years 1 - 10 (b) Years 11+ (c) Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Sensitive 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(a) In the System's CAFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities. (b) An expected inflation of 2.0% used for this period. (c) An expected inflation of 2.92% used for this period.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability for the Plans, calculated using the discount rate for the Plans, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1- percentage point higher than the current rate:

Miscellaneous Safety Total Plan
1% Decrease 6.15% 6.15% 6.15%
Net Pension Liability $ 13,535,176 13,896,362 $ 27,431,538 Current 7.15% 7.15% 7.15%
Net Pension Liability $ 7,508,355 8,457,030 $ 15,965,385 1% Increase 8.15% 8.15% 8.15%
Net Pension Liability $ 2,526,069 3,989,291 $ 6,515,359 Pension Plan Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

NOTE 9 - OTHER POSTEMPLOYMENT BENEFITS PLAN
Plan Description and Benefits
The City of Carmel-by-the-Sea Retiree Healthcare Plan (Plan) is a single-employer defined benefit healthcare plan administered by the City. The Plan provides access to lifetime healthcare benefits to eligible retirees and their dependents. The City provides retiree medical benefits through the California Public Employees’ Retirement System healthcare program (PEMHCA). For eligible retirees, the City contributes not less than 5% of the active contribution times years in PEMHCA (max $100/month increase). For purposes of its contract with PEMHCA, the City uses a statutory schedule to determine its monthly contribution on behalf of each active employee. The statutory amount is $133.00 for 2018 and will be indexed by the Medical CPI each year thereafter.

The City offers the same medical plans to its retirees and surviving spouses as to its active employees, with the exception that once a retiree becomes eligible for Medicare, he or she must join a Medicare HMO or a Medicare Supplement plan, with Medicare becoming the primary payer. Employees become eligible to retire and receive City-paid healthcare benefits upon attainment of age 50 and 5 years of service (age 52 for Miscellaneous PEPRA employees). The City contribution towards retiree health benefits is determined under the "equal contribution method" under PEMHCA, whereby the contribution is 100% of the City's statutory minimum contribution for active employees ($133/month for 2018 and scheduled to be indexed by medical inflation for years after 2018). No stand-alone financial are issued for this plan as it is not a trusted plan.

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
Employees Covered by Benefit Terms
At June 30, 2021, the benefit terms covered the following employees:

Active employees 63
Inactive employees 41
Total employees 104
Contributions
The City makes contributions based on a pay-as-you go basis as approved by the authority of the City’s Board. Total benefit payments included in the measurement period were $138,891. The actuarially determined contribution for the measurement period was $256,840. The City’s contributions and benefit payments were 2% of covered payroll during the measurement period June 30, 2022. Employees are not required to contribute to the plan. There have been no assets accumulated in a trust to provide for the benefits of this plan.

Actuarial Assumptions
The following summarized the actuarial assumptions for the OPEB plan included in this fiscal year:

Valuation Date:

Measurement Date:

Actuarial Cost Method:

Amortization Period:

Actuarial Assumptions:

Discount Rate
Inflation
Payroll Increases
Trend Rate
Municipal Bond Rate
Mortality

4.00%
Entry-Age Normal Cost Method
June 30, 2021
June 30, 2022
20 years

2.50%

2.75%

3.54%

3.54%
2017 CalPERS Mortality for Safety Employees
2017 CalPERS Retiree Mortality for All Employees
2017 CalPERS Mortality for Miscellaneous and
Schools Employees
Increased from 2.16%
Discount Rate
The discount rate was based on the Bond Buyer 20-bond General Obligation Index.

Total OPEB Liability
The City's total OPEB liability was measured as of June 30, 2022 (measurement date) and was determined by an actuarial valuation as of June 30, 2022 (valuation date) for the fiscal year ended June 30, 2022 (reporting date).

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
Changes in the Total OPEB Liability
The following summarizes the changes in the Total OPEB liability during the year:

Fiscal Year Ended June 30, 2022
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability
(Asset)
Balance at June 30, 2021 $ 4,140,590 $ - $ 4,140,590
Service cost 261,219 - 261,219
Interest in Total OPEB Liability 90,758 - 90,758
Changes in assumptions (716,539) - (716,539)
Benefit payments (138,891) - (138,891)
Net changes (503,453) - (503,453)
Balance at June 30, 2022 $ 3,637,137 $ - $ 3,637,137
Covered Employee Payroll $ 6,919,512
Total OPEB Liability as a % of Covered Employee Payroll 52.56% Service Cost as a % of Covered Employee Payroll 3.78%
Net OPEB Liability as a % of Covered Employee Payroll 52.56% The City’s plan is nonfunded, meaning there have not been assets placed into an irrevocable trust, therefore the plan fiduciary net position is zero.

Deferred Inflows and Outflows of Resources
At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between actual and expected experience $ 35,151 $ 592,127 Change in assumptions 214,324 622,748
Totals $ 249,475 $ 1,214,875
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Year Ended June 30,
2023 $ (142,427)
2024 (161,384)
2025 (171,239)
2026 (171,239)
2027 (196,805)
Thereafter (122,306)
Total $ (965,400)

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
OPEB Expense
The following summarizes the OPEB expense by source during the year ended June 30, 2022:

Service cost $ 261,219
Interest in TOL 90,758
Difference between actual and expected experience (108,945) Change in assumptions (52,825)
OPEB Expense $ 190,207
The following summarizes changes in the net OPEB liability as reconciled to OPEB expense during the year ended June 30, 2022:
$ 3,637,137
(4,140,590)
(503,453)
Changes in deferred outflows 82,203
Changes in deferred inflows 472,566
Employer contributions and implicit subsidy 138,891
OPEB Expense $ 190,207
Total OPEB liability ending
Total OPEB liability begining
Change in total OPEB liability
Sensitivity to Changes in the Discount Rate
The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher, is as follows:
1% Decrease 3.54% 1% Increase
Total OPEB Liability $ 4,146,861 $ 3,637,137 $ 3,276,567 Municipal Bond Rate
Sensitivity to Changes in the Healthcare Cost Trend Rates The net OPEB liability of the City, as well as what the City's net OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than current healthcare cost trend rates, is as follows:
1% Decrease 4.00% 1% Increase
Total OPEB Liability $ 3,118,627 $ 3,637,137 $ 4,252,503 Trend Rate

Attachment 2
City of Carmel-by-the-Sea
Notes to the Basic Financial Statements
June 30, 2022
NOTE 10 - COMMITMENTS AND CONTINGENCIES
A. Lawsuits
The City may be involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that any cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.

B. Federal and State Grant Programs
The City participates in Federal, State and County grant programs. These programs are audited by the City's independent accountants, if required, in accordance with the provisions of the Federal Single Audit Act Amendments of 1996 and applicable State requirements. For Federal programs, the City did not reach the level of qualifying expenditures during the current fiscal year that would require a single audit.

Expenditures which may be disallowed, if any, by the granting agencies, cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

Attachment 2

REQUIRED SUPPLEMENTARY

INFORMATION

Attachment 2
This page is intentionally blank

Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
General Fund
For the Year Ended June 30, 2022
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes:

Property taxes 7,657,050 $ 8,068,908 $ 7,694,722 $ (374,186) $ Sales and use taxes 2,466,109 2,966,109 3,626,263 660,154 Transient occupancy taxes 5,333,562 6,568,562 7,787,643 1,219,081 Franchise fees 738,721 767,363 851,738 84,375
Business license tax 525,000 525,000 613,559 88,559
Intergovernmental revenues 1,241,664 1,383,831 678,437 (705,394) License and permits 908,397 1,168,783 1,276,260 107,477 Fines and forfeitures 66,873 66,873 55,506 (11,367)
Charges for services 1,148,347 1,148,347 1,446,442 298,095 Interest 25,000 25,000 (114,537) (139,537)
Rents and concessions 140,006 140,006 132,551 (7,455)
Other revenues 54,044 54,044 127,327 73,283
Total Revenues 22,882,826 20,304,773 24,175,911 1,293,085

EXPENDITURES
Current:

General government 6,717,116 6,815,681 5,990,601 825,080 Community Planning and Building 1,738,412 1,883,802 1,550,702 333,100 Public Safety 8,658,485 8,787,523 8,236,353 551,170
Public Works 2,937,406 3,386,136 3,184,957 201,179
Library 952,395 952,395 630,699 321,696
Community Activities 91,270 130,547 136,788 (6,241)
Economic Reviltalization 1,033,307 1,033,307 1,033,307 - Total Expenditures 22,989,391 22,128,391 20,763,407 2,225,984 Excess (Deficiency) of Revenues over Expenditures (1,823,618) (106,565) 3,412,504 3,519,069

OTHER FINANCING SOURCES (USES)
Transfers in 3,139,825 3,139,825 3,074,825 (65,000)
Transfers out (1,314,125) (1,379,125) (1,432,910) (53,785) Total Other Financing Sources (Uses) 1,760,700 1,825,700 1,641,915 (118,785) Net Change in Fund Balance 2,082 1,654,135 5,054,419 3,400,284 Fund Balance Beginning 12,614,869 12,614,869 12,614,869 - Fund Balance Ending 12,616,951 $ 14,269,004 $ 17,669,288 $ 3,400,284 $

Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Measure C Sales Tax Fund
For the Year Ended June 30, 2022
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes:

Sales and use taxes 4,206,660 $ 4,706,660 $ 5,970,464 $ 1,263,804 $

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out (4,206,660) (4,206,660) (4,206,660) -
Total Other Financing Sources (Uses) (4,206,660) (4,206,660) (4,206,660) - Net Change in Fund Balance - 500,000 1,763,804 1,263,804 Fund Balance Beginning 1,635,906 1,635,906 1,635,906 -
Fund Balance Ending $ 2,135,906 1,635,906 $ 3,399,710 $ 1,263,804 $

Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Harrison Memorial Library Fund
For the Year Ended June 30, 2022
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Contributions 291,000 $ 291,000 $ 371,377 $ 80,377 $
Charges for services 16,000 16,000 2,239 (13,761)
Interest 10,850 10,850 3,325 (7,525)
Total Revenues 317,850 317,850 376,941 59,091

EXPENDITURES
Current:

Library 318,245 318,245 298,559 19,686
Total Expenditures 318,245 318,245 298,559 19,686
Excess (Deficiency) of Revenues over Expenditures (395) (395) 78,382 78,777

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out - - - -
Total Other Financing Sources (Uses) - - - -
Net Change in Fund Balance (395) (395) 78,382 78,777
Fund Balance Beginning 1,470,720 1,470,720 1,470,720 -
Fund Balance Ending 1,470,325 $ 1,470,325 $ 1,549,102 $ 78,777 $

Attachment 2
City of Carmel-by-the-Sea
Schedule of Pension Contributions
June 30, 2022
Miscellaneous and Safety Plan
Fiscal Year Ended 2015 2016 2017 2018 2019 2020 2021 2022 Contractually Required Contributions $ 725,205 $ 1,124,776 $ 1,279,565 $ 1,317,381 $ 1,566,319 $ 1,864,910 $ 2,183,606 $ 2,378,458 Contributions in Relation to Contractually
Required Contributions 725,205 1,124,776 1,279,565 1,317,381 1,566,319 1,864,910 2,183,606 2,378,458 Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ - $ - Covered Payroll $ 4,894,966 $ 5,193,071 $ 5,725,559 $ 5,897,326 $ 6,074,246 $ 6,591,573 $ 6,772,841 $ 6,244,060 Contributions as a % of Covered Payroll 14.82% 21.66% 22.35% 22.34% 25.79% 28.29% 32.24% 38.09% Notes to Schedule:

Valuation Date: June 30, 2020
Assumptions Used: Entry Age Method used for Actuarial Cost Method Level Percentage of Payroll and Direct Rate Smoothing

3.8 Years Remaining Amortization Period
Inflation Assumed at 2.50%
Investment Rate of Returns set at 7.00%
Fiscal year 2015 was the first year of implementation, therefore only eight years are shown.

The CalPERS discount rate was increased from 7.50% to 7.65% in fiscal year 2016, then to 7.15% in 2018.

The CalPERS mortality assumptions was adjusted in fiscal year 2019.

CalPERS mortality table based on CalPERS' experience and include 15 years of projected ongoing mortality improvement using 90 percent of Scale MP 2016 published by the Society of Actuaries.

Attachment 2
City of Carmel-by-the-Sea
Schedule of Proportionate Share of Net Pension Liability June 30, 2022
Miscellaneous and Safety Plan
Fiscal Year Ended 2015 2016 2017 2018 2019 2020 2021 2022 Proportion of Net Pension
Liability (Safety and Misc) 0.18745% 0.19035% 0.19840% 0.20075% 0.20672% 0.21144% 0.22373% 0.29520% Proportion of Net Pension
Liability (Misc Plan Only) 0.47195% 0.47624% 0.49419% 0.50503% 0.52858% 0.54105% 0.28377% 0.39543% Proportionate Share of
Net Pension Liability $ 11,664,146 $ 13,065,617 $ 17,167,636 $ 19,908,483 $ 19,920,568 $ 21,666,416 $ 24,342,598 $ 15,965,385 Covered Payroll $ 4,748,117 $ 6,261,394 $ 5,693,737 $ 5,365,096 $ 5,446,378 $ 5,919,593 $ 6,340,399 $ 6,335,440 Proportionate Share of NPL
as a % of Covered Payroll 245.66% 208.67% 301.52% 371.07% 365.76% 366.01% 383.93% 252.00% Plan's Fiduciary Net Position
as a % of the TPL 80.11% 77.73% 74.70% 73.44% 74.18% 72.78% 71.13% 81.45% Fiscal year 2015 was the first year of implementation, therefore only eight years are shown.

The CalPERS discount rate was increased from 7.50% to 7.65% in fiscal year 2016, then to 7.15% in 2018.

The CalPERS mortality assumptions was adjusted in fiscal year 2019.

Attachment 2
City of Carmel-by-the-Sea
Retiree Health Care Plan
Schedule of Total OPEB Liability
June 30, 2022
Fiscal Year Ended 2018 2019 2020 2021 2022
Total OPEB liability
Service cost $ 199,013 $ 193,586 $ 295,059 $ 348,597 $ 261,219 Interest 134,202 146,765 143,565 105,930 90,758
Differences between expected and actual experience (2,625) (2,524) 59,118 (823,299) - Changes of assumptions (137,699) 192,779 256,216 21,493 (716,539) Benefit payments (145,196) (159,107) (135,193) (152,834) (138,891) Net change in Total OPEB Liability 47,695 371,499 618,765 (500,113) (503,453) Total OPEB Liability - beginning 3,602,744 3,650,439 4,021,938 4,640,703 4,140,590 Total OPEB Liability - ending $ 3,650,439 $ 4,021,938 $ 4,640,703 $ 4,140,590 $ 3,637,137 Plan fiduciary net position
Net change in plan fiduciary net position $ - $ - $ - $ - $ - Plan fiduciary net position - beginning - - - - -
Plan fiduciary net position - ending $ - $ - $ - $ - $ - Net OPEB liability (asset) $ 3,650,439 4,021,938 4,640,703 4,140,590 3,637,137 Plan fiduciary net position as a percentage of the
total OPEB liability 0.00% 0.00% 0.00% 0.00% 0.00%
Covered Employee Payroll $ 6,021,711 $ 6,207,949 $ 6,378,668 $ 6,544,081 $ 6,734,318 Net OPEB liability as a percentage of covered employee payroll 60.62% 64.79% 72.75% 63.27% 54.01% Total OPEB liability as a percentage of covered employee payroll 60.62% 64.79% 72.75% 63.27% 54.01% Other Notes
No assets have been accumulated in a trust for the City's OPEB plan.

GASB 75 requires a schedule of contributions for the last ten fiscal years, or for as many years as are available if less than ten years are available. GASB 75 was adopted as of June 30, 2018.

The discount rate decreased from 3.5% to 2.2%, the inflation rate increased from 2.25% to 2.75%, the payroll rate decreased from 3% to 2.75%, and the trend rate changed from 8% to 4% from 2019 to 2020.

Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year in which contributions are reported.

The discount rate decreased from 2.2% to 2.16% from 2020 to 2021. The discount rate was increase to 3.54% in 2022.

Attachment 2

SUPPLEMENTARY INFORMATION

Attachment 2
This page is intentionally blank

Attachment 2

COMBINING NONMAJOR GOVERNMENTAL FUNDS
Fund Title Fund Description
Gast Tax This fund is used to account for revenues collected in accordance with the Streets and Highway Code.

Transportation Safety This fund accounts for the expenditures related to resources provided for transportation safety as required by Measure X.

COPS Grant This fund accounts for the expenditures related to the COP's grant for public safety.

Parking in Lieu This fund is used to account for activities associate with parking in-lieu fees.

Asset Seizure This fund accounts for the expenditures related to asset seizures.

Debt Service This fund is used to account for activities related to the repayment of the Certificate of Participation, Pension Obligation Bond, and capital lease obligations.

Attachment 2
City of Carmel-By-The-Sea
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022

Gas Transportation COPS Parking
Tax Safety Grant In-Lieu
Fund Fund Fund Fund
ASSETS
Cash and investments 59,918$ $ 525,398 $ - $ 734,015
Receivables:

Due from other governments 11,761 68,361 16,667 -
Total assets 71,679$ $ 593,759 $ 16,667 $ 734,015

LIABILITIES AND FUND BALANCES
Liabilities:

Due to other funds -$ $ - $ 13,317 $ -
Total liabilities - - 13,317 -
Fund Balances:

Restricted:

Transportation 71,679 593,759 - -
Public safety - - 3,350 -
Debt service - - - -
Asset seizure - - - -
Public parking - - - 734,015
Total fund balances 71,679 593,759 3,350 734,015
Total liabilities and fund balances 71,679$ $ 593,759 $ 16,667 $ 734,015 Cont'd
Special Revenue Funds

Attachment 2
City of Carmel-By-The-Sea
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2022
ASSETS
Cash and investments
Receivables:

Due from other governments
Total assets

LIABILITIES AND FUND BALANCES
Liabilities:

Due to other funds
Total liabilities
Fund Balances:

Restricted:

Transportation
Public safety
Debt service
Asset seizure
Public parking
Total fund balances
Total liabilities and fund balances
Special Revenue
Funds Debt Service
Total
Asset Debt Nonmajor
Seizure Service Governmental
Fund Fund Funds
$ 416,577 5,432 $ 1,741,340 $
- - 96,789
$ 416,577 5,432 $ 1,838,129 $
$ - - $ 13,317 $
- - 13,317
- - 665,438
- - 3,350
416,577 416,577 -
5,432 - 5,432
- - 734,015
416,577 5,432 1,824,812
$ 416,577 5,432 $ 1,838,129 $
Concluded

Attachment 2
City of Carmel-By-The-Sea
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2022

Gas Transportation COPS Parking
Tax Safety Grant In-Lieu
Fund Fund Fund Fund

REVENUES
Intergovernmental revenues $ 165,958 $ 318,165 $ 161,285 -$ Interest (535) (900) (103) (3,109)
Total Revenues 165,423 317,265 161,182 (3,109)

EXPENDITURES
Debt service
Principal - - - -
Interest and fiscal charges - - - -
Total Expenditures - - - -
Excess (Deficiency) of Revenues over Expenditures 165,423 317,265 161,182 (3,109)

OTHER FINANCING SOURCES (USES)
Transfers in - 53,785 - -
Transfers out (306,567) (15,000) (213,698) -
Total Other Financing Sources (Uses) (306,567) 38,785 (213,698) - Net Change in Fund Balances (141,144) 356,050 (52,516) (3,109) Fund Balances Beginning 212,823 237,709 55,866 737,124
Fund Balances Ending $ 71,679 $ 593,759 $ 3,350 $ 734,015 Cont'd
Special Revenue Funds

Attachment 2
City of Carmel-By-The-Sea
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2022

REVENUES
Intergovernmental revenues
Interest
Total Revenues

EXPENDITURES
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
Fund Balances Beginning
Fund Balances Ending
Debt Service
Total
Asset Debt Nonmajor
Seizure Service Governmental
Fund Fund Funds
$ - $ - $ 645,408
(23) - (4,670)
(23) - 640,738

- 660,000 660,000
- 199,212 199,212
- 859,212 859,212
(23) (859,212) (218,474)
- 882,656 936,441
- - (535,265)
- 882,656 401,176
(23) 23,444 182,702
5,455 393,133 1,642,110
$ 5,432 $ 416,577 $ 1,824,812
Concluded
Special Revenue
Funds

Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental revenues 180,591 $ 180,591 $ 165,958 $ (14,633) $ Contributions - - - -
Charges for services - - - -
Interest - - (535) (535)
Total Revenues 180,591 180,591 165,423 (15,168)

EXPENDITURES
Debt service
Principal - - - -
Interest and fiscal charges - - - -
Total Expenditures - - - -
Excess (Deficiency) of Revenues over Expenditures 180,591 180,591 165,423 (15,168)

OTHER FINANCING SOURCES (USES)
Transfers in - - - -
Transfers out (306,567) (306,567) (306,567) -
Total Other Financing Sources (Uses) (306,567) (306,567) (306,567) - Net Change in Fund Balances (125,976) (125,976) (141,144) (15,168) Fund Balances Beginning 212,823 212,823 212,823 -
Fund Balances Ending $ 86,847 $ 86,847 $ 71,679 $ (15,168) Cont'd
Budgeted Amounts
Gas Tax Fund

Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022

REVENUES
Intergovernmental revenues
Contributions
Charges for services
Interest
Total Revenues

EXPENDITURES
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
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
$ 196,212 196,212 $ 318,165 $ 121,953 $
- - - -
- - - -
- - (900) (900)
196,212 196,212 317,265 121,053

- - - -
- - - -
- - - -
196,212 196,212 317,265 121,053
- - 53,785 53,785
(319,352) (319,352) (15,000) 304,352
(319,352) (319,352) 38,785 358,137
(123,140) (123,140) 356,050 479,190
237,709 237,709 237,709 -
$ 114,569 $ 114,569 $ 593,759 $ 479,190
Cont'd
Budgeted Amounts
Transportation Safety Fund

Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022

REVENUES
Intergovernmental revenues
Contributions
Charges for services
Interest
Total Revenues

EXPENDITURES
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
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
158,000$ 158,000$ $ 161,285 $ 3,285
- - - -
- - - -
- - (103) (103)
158,000 158,000 161,182 3,182

- - - -
- - - -
- - - -
158,000 158,000 161,182 3,182
- - - -
(213,698) (213,698) (213,698) -
(213,698) (213,698) (213,698) -
(55,698) (55,698) (52,516) 3,182
55,866 55,866 55,866 -
168$ 168$ $ 3,350 $ 3,182
Cont'd
Budgeted Amounts
COPS Grant Fund

Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022

REVENUES
Intergovernmental revenues
Contributions
Charges for services
Interest
Total Revenues

EXPENDITURES
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
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$
- - - -
- - - -
- - (3,109) (3,109)
- - (3,109) (3,109)

- - - -
- - - -
- - - -
- - (3,109) (3,109)
- - - -
- - - -
- - - -
- - (3,109) (3,109)
737,124 737,124 737,124 -
$ 737,124 737,124$ $ 734,015 $ (3,109)
Cont'd
Budgeted Amounts
Parking In-Lieu Fund

Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022

REVENUES
Intergovernmental revenues
Contributions
Charges for services
Interest
Total Revenues

EXPENDITURES
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
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$
- - - -
- - - -
- - (23) (23)
- - (23) (23)

- - - -
- - - -
- - - -
- - (23) (23)
- - - -
- - - -
- - - -
- - (23) (23)
5,455 5,455 5,455 -
5,455$ 5,455$ $ 5,432 $ (23)
Cont'd
Budgeted Amounts
Asset Seizure Fund

Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and
Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2022

REVENUES
Intergovernmental revenues
Contributions
Charges for services
Interest
Total Revenues

EXPENDITURES
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
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$
- - - -
- - - -
- - - -
- - - -

677,110 677,110 660,000 17,110
205,546 205,546 199,212 6,334
882,656 882,656 859,212 23,444
(882,656) (882,656) (859,212) 23,444
882,656 882,656 882,656 -
- - - -
882,656 882,656 882,656 -
- - 23,444 23,444
393,133 393,133 393,133 -
$ 393,133 $ 393,133 $ 416,577 $ 23,444
Concluded
Budgeted Amounts
Debt Service Fund

Attachment 2
City of Carmel-By-The-Sea
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Capital Projects Fund
For the Year Ended June 30, 2022
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental revenues 88,500 $ 88,500 $ - $ (88,500) $ Total Revenues 88,500 88,500 - (88,500)

EXPENDITURES
Capital outlay 1,599,580 1,599,580 149,872 1,449,708
Total Expenditures 1,599,580 1,599,580 149,872 1,449,708 Excess (Deficiency) of Revenues over Expenditures (1,511,080) (1,511,080) (149,872) 1,361,208

OTHER FINANCING SOURCES (USES)
Transfers in 1,511,080 1,511,080 1,206,728 (304,352)
Transfers out - - - -
Total Other Financing Sources (Uses) 1,511,080 1,511,080 1,206,728 (304,352) Net Change in Fund Balance - - 1,056,856 1,056,856
Fund Balance Beginning 539,863 539,863 539,863 -
Fund Balance Ending 539,863 $ 539,863 $ 1,596,719 $ 1,056,856 $

Attachment 2

INTERNAL SERVICE FUNDS
Fund Title Fund Description
Worker's Compensation This fund accounts for workers compensation insurance provided to departments on a cost reimbursement basis.

OPEB Reserve Fund This fund accounts for other postemployment benefits provided to departments on a cost reimbursement basis.

Vehicle & Equipment Replacement This fund is to set aside financial resources for future purchases of replacement equipment essential to the operations of the City.

Attachment 2
City of Carmel-By-The-Sea
Combining Statement of Net Position
Internal Service Funds
June 30, 2022
Total
Vehicle Governmental
Workers OPEB & Equipment Activities -
Compensation Reserve Replacement Internal
Fund Fund Fund Service Funds
ASSETS
Current assets:

Cash and investments $ 639,234 $ 1,757,748 $ 366,579 $ 2,763,561 Other assets - - 18,192 18,192
Total current assets 639,234 1,757,748 384,771 2,781,753 Noncurrent assets:

Capital assets - net - - 1,195,810 1,195,810
Total assets $ 639,234 $ 1,757,748 $ 1,580,581 $ 3,977,563

LIABILITIES
Current liabilities:

Claims payable - current $ 57,500 -$ $ - $ 57,500
Noncurrent liabilities:

Claims payable 517,500 - 517,500 -
Total liabilities $ 575,000 -$ $ 575,000 - $

NET POSITION
Net investment in capital assets -$ -$ 1,195,810 $ $ 1,195,810 Unrestricted 64,234 1,757,748 384,771 2,206,753
Total net position $ 64,234 $ 1,757,748 $ 1,580,581 $ 3,402,563

Attachment 2
City of Carmel-By-The-Sea
Combining Statement of Revenues, Expenses and Changes in Fund Net Position Internal Service Funds
For the Year Ended June 30, 2022
Total
Vehicle Governmental
Workers OPEB & Equipment Activities -
Compensation Reserve Replacement Internal
Fund Fund Fund Service Funds

OPERATING REVENUES
Charges for services 18,670 $ - $ - $ 18,670 $
Other - - 50,000 50,000
Total operating revenues 18,670 - 50,000 68,670

OPERATING EXPENSES
Claims 47,724 - - 47,724
Depreciation - - 172,676 172,676
Total operating expenses 47,724 - 172,676 220,400
Operating income (loss) (29,054) (122,676) - (151,730)

NONOPERATING REVENUES(EXPENSES)
Investment income (2,526) (7,601) - (10,127)
Total nonoperating revenues(expenses) (2,526) (7,601) - (10,127) Income (loss) before operating transfers (31,580) (7,601) (122,676) (161,857) Transfers in 116,158 - 920,663 1,036,821
Transfers out - (79,980) - (79,980)
Total Other Financing Sources (Uses) 116,158 (79,980) 920,663 956,841 Change in net position 84,578 (87,581) 797,987 794,984
Total net position - beginning (20,344) 1,845,329 782,594 2,607,579 Total net position - ending $ 64,234 $ 1,757,748 $ 1,580,581 $ 3,402,563

Attachment 2
City of Carmel-By-The-Sea
Combining Statement of Cash Flows
Internal Service Funds
For the Year Ended June 30, 2022
Total
Vehicle Governmental
Workers OPEB & Equipment Activities -
Compensation Reserve Replacement Internal
Fund Fund Fund Service Funds
Cash flows from operating activities:

Receipts from interfund services provided 18,670 $ - $ 50,000 $ 68,670 $ Payments for claims (47,724) - - (47,724)
Payments for supplies and materials - - (67,089) (67,089) Net cash provided (used) by operating activities (29,054) - (17,089) (46,143) Cash flows from noncapital financing activities:

Interfund transactions 116,158 (79,980) 920,663 956,841 Net cash provided (used) by noncapital financing activities 116,158 (79,980) 920,663 956,841 Cash flows from capital financing activities:

Purchases of property and equipment - - (647,220) (647,220) Net cash provided (used) by noncapital financing activities - - (647,220) (647,220) Cash flows from investing activities:

Investment income received (2,526) (7,601) - (10,127)
Net cash provided (used) by investing activities (2,526) (7,601) - (10,127) Net increase (decrease) in cash and cash equivalents 84,578 (87,581) 256,354 253,351 Cash and cash equivalents - beginning 554,656 1,845,329 110,225 2,510,210 Cash and cash equivalents - ending 639,234 $ 1,757,748 $ 366,579 $ 2,763,561 $ Reconciliation of operating income to net cash provided (used) by operating activities:

Operating income (loss) (29,054) $ - $ (122,676) $ (151,730) $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation - - 172,676 172,676
Change in operating assets and liabilities:

Other assets - - (18,192) (18,192)
Accounts payable - - (48,897) (48,897)
Net cash provided (used) by operating activities (29,054) $ - $ (17,089) $ $ (46,143)

Attachment 2

STATISTICAL SECTION

Attachment 2
Page Intentionally Left Blank

Attachment 2
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Information
Sources: Unless otherwise noted, the information in these tables is derived from the comprehensive annual financial reports for the relevant year.

These tables offer demographic and economic indicators to help the reader understand the environment within which the city's financial activities take place.

These tables 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.

These tables 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.

STATISTICAL SECTION
(Unaudited)
These tables contain trend information to help the reader understand how the city's financial performance and well-being have changed over time.

This part of the City of Carmel-by-the-Sea's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the city's overall financial health.

These tables contain information to help the reader assess the city's most significant local revenue source, the property tax.

Attachment 2
Page Intentionally Left Blank

Attachment 2
City of Carmel-by-the-Sea TABLE 1
Net Position By ComponentLast Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Governmental activities:

Net investment in capital assets $ 29,605,438 $ 25,522,348 $ 32,547,268 $ 36,006,046 $ 36,931,575 $ 35,216,550 $ 37,132,103 $ 36,611,510 $ 34,846,110 $ 33,545,605 Restricted 566,992 2,616,731 3,862,473 3,584,687 5,027,082 2,628,238 2,817,741 3,310,294 4,748,736 6,773,624 Unrestricted 2,205,463 6,266,725 (12,992,711) (12,666,545) (14,167,354) (12,141,385) (12,645,571) (14,479,015) (11,775,303) (8,155,852) Total governmental activities net position 32,377,893 $ $ 34,405,804 $ 23,417,030 $ 26,924,188 $ 27,791,303 $ 25,703,403 $ 27,304,273 $ 25,442,789 $ 27,819,543 $ 32,163,377 Notes:1) In 2015, net position decreased mostly due to the implementation of GASB 68 for pension benefit liabilities and related amounts.Source: City of Carmel-by-the-Sea Finance Department $-
$5
$10 $15 $20 $25 $30 $35 $40
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Total Net Position

City of Carmel-by-the-Sea TABLE 2
Changes in Net Position
Last Ten Fiscal Years
2013 2014 2015 2016 2017
Expenses
Governmental activities:

General government $ 9,481,135 4,067,934 $ 3,724,546 $ 5,162,323 $ 4,981,304 $ Community planning and building - - - - 1,146,860
Public safety 4,193,157 4,299,954 6,685,310 6,445,695 7,281,137 Public works 1,896,305 2,227,067 2,003,332 1,454,895 2,605,036 Library - - - - 1,144,883
Community activities - - - - 446,445
Economic revitalization 304,587 363,342 326,956 306,505 1,110,857 Building maintenance 3,763,094 2,924,447 1,832,618 1,542,170 - Forest, parks and beach 472,123 484,119 581,319 558,592 - Culture and recreation 2,405,481 2,453,842 2,605,877 2,082,591 - Interest and fiscal charges on long-term debt 376,787 346,674 365,043 336,551 322,181 Depreciation (Unallocated) - - - 1,528,260 1,747,960
Total governmental activities expenses 22,892,669 17,167,379 18,125,001 19,417,582 20,786,663 Program Revenues
Governmental activities:

Charges for services:

General government 15,644 19,821 66,190 34,040 38,795
Community planning and building - - - - -
Public safety 167,723 184,338 918,644 684,612 373,716
Public works 433,928 467,392 525,310 534,224 751,844
Library - - - - -
Community activities - - - - -
Economic revitalization - - - - -
Forest, parks and beach - 165,406 - - -
Culture and recreation 80,909 91,804 18,953 20,326 31,817 Operating grants and contributions 1,474,331 1,282,214 1,444,296 668,239 675,765 Capital grants and contributions - - 331,719 327,029 166,726 Total governmental activities program revenues 2,176,712 2,206,798 3,305,112 2,268,470 2,038,663 Net (expense)/revenue:

Governmental activities (20,715,957) (14,960,581) (14,819,889) (17,149,112) (18,748,000) General Revenues and Other Changes in Net Assets
Governmental activities:

Taxes
Property taxes 4,652,176 4,881,534 5,127,974 5,598,743 5,825,889 Sales and use taxes 2,760,414 5,115,880 5,280,418 4,897,325 5,373,800 Transient occupancy taxes 4,615,598 5,185,880 5,593,689 5,890,538 6,112,347 Franchise taxes 981,831 994,468 430,430 587,514 672,554 Business license tax 577,364 549,190 606,128 626,625 649,525 Unrestricted grants and contributions - - 382,145 413,334 436,073 Unrestricted investment earnings 76,880 69,735 163,648 160,172 182,366 Gain (loss) on sale of assets - - - - -
Miscellaneous or other revenues 98,331 184,660 249,537 1,963,750 362,561 Total governmental activities 13,755,449 16,988,492 17,833,969 20,138,001 19,615,115 Change in Net Position $ 2,027,911 (6,960,508) $ 3,014,080 $ 2,988,889 $ 867,115 $ Cont'd
Source: City of Carmel-by-the-Sea Finance Department
Note: In 2012 and 2018, the City changed the
classification of its program expenses and revenues
based on operations at the time.

Attachment 2
City of Carmel-by-the-Sea
Changes in Net Position
Last Ten Fiscal Years
Expenses
Governmental activities:

General government
Community planning and building
Public safety
Public works
Library
Community activities
Economic revitalization
Building maintenance
Forest, parks and beach
Culture and recreation
Interest and fiscal charges on long-term debt
Depreciation (Unallocated)
Total governmental activities expenses
Program Revenues
Governmental activities:

Charges for services:

General government
Community planning and building
Public safety
Public works
Library
Community activities
Economic revitalization
Forest, parks and beach
Culture and recreation
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Net (expense)/revenue:

Governmental activities
General Revenues and Other Changes in Net Assets
Governmental activities:

Taxes
Property taxes
Sales and use taxes
Transient occupancy taxes
Franchise taxes
Business license tax
Unrestricted grants and contributions
Unrestricted investment earnings
Gain (loss) on sale of assets
Miscellaneous or other revenues
Total governmental activities
Change in Net Position
Source: City of Carmel-by-the-Sea Finance Department
Note: In 2012 and 2018, the City changed the
classification of its program expenses and revenues
based on operations at the time.

TABLE 2
2018 2019 2020 2021 2022
$ 4,896,809 5,906,304 $ 5,356,174 $ 5,423,821 $ 6,494,737 $ 1,206,295 1,191,826 1,214,005 1,280,518 1,789,916
7,771,104 8,390,616 9,166,804 8,968,364 10,511,669
2,950,423 4,162,376 4,410,995 4,162,030 4,961,215
1,303,989 1,894,410 2,011,886 1,539,410 1,644,498
153,224 283,512 256,698 119,562 205,869
1,125,261 1,144,022 1,081,813 819,202 1,034,150
- - - - -
- - - - -
- - - - -
319,974 283,606 268,721 387,525 168,038
1,786,021 - - - -
21,513,100 23,256,672 23,767,096 22,700,432 26,810,092
318,414 256,645 211,067 165,541 478,709
1,167,308 1,454,523 1,112,512 1,142,277 1,332,086
692,187 790,428 808,559 796,471 911,902
58,931 44,636 42,395 156,838 53,251
14,794 10,097 11,793 5,544 2,239
146,443 79,067 85,060 33,140 43,922
97,142 102,366 91,528 111,093 119,646
- - - - -
- - - - -
681,240 865,370 695,186 813,139 960,670
- - - - -
3,670,508 3,109,083 3,058,100 3,224,043 3,902,425
(19,586,164) (18,404,017) (20,708,996) (19,476,389) (22,907,667) 6,192,126 6,524,331 6,690,948 7,389,657 7,694,722
5,486,449 5,732,885 4,766,762 7,028,041 9,596,727
6,329,074 6,882,015 5,115,271 5,339,285 7,787,643
637,136 636,397 632,833 756,358 851,738
544,392 594,941 592,466 524,220 613,559
462,989 - 672,399 704,337 734,550
101,743 205,791 207,153 47,554 (126,009)
(160,794) (2,439,255) - - -
212,820 12,928 169,680 63,691 98,571
17,527,474 20,428,494 18,847,512 21,853,143 27,251,501
$ 842,330 (876,543) $ (1,861,484) $ 2,376,754 $ 4,343,834 $ Concluded

Attachment 2
City of Carmel-by-the-Sea TABLE 3
Fund Balances of Governmental FundsLast Ten Fiscal Years 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Fund
Restricted - $ - $ - $ - $ - $ - $ - $ - $ - $ 942,628 $ Nonspendable - 73,038 - - - - - - - -Committed 2,898,615 2,888,306 4,561,070 2,166,165 2,173,138 2,806,045 2,808,138 2,684,665 2,421,958 4,410,254Assigned - - 1,747,589 3,308,636 2,448,461 1,922,008 1,926,008 1,025,194 1,025,194 2,298,939Unassigned 5,253,298 4,172,077 1,541,150 1,738,067 4,693,897 3,278,341 4,515,984 5,048,288 9,167,717 10,017,467Total Fund Balance 8,151,913 7,133,421 7,849,809 7,212,868 9,315,496 8,006,394 9,250,130 8,758,147 12,614,869 17,669,288 Other Governmental Funds
Nonspendable 46,747 $ 46,747 $ - $ - $ - $ - $ - $ - $ - $ - $ Restricted 566,992 2,543,658 3,903,533 3,624,383 5,065,310 2,628,238 2,817,741 3,310,294 4,748,736 6,773,624Committed - - 1,783,310 - - - - - - -Assigned 1,793,249 1,477,680 90,158 1,146,832 1,627,098 362,034 571,657 539,863 1,596,719 Unassigned - (479,166) (684,400) (706,427) (1,264,197) (483) - - - -Total Fund Balance 2,406,988 3,588,919 5,092,601 4,064,788 3,801,113 4,254,853 3,179,775 3,881,951 5,288,599 8,370,343 Total Fund Balance $ 10,722,340 10,558,901 $ 12,942,410 $ 11,277,656 $ 13,116,609 $ 12,261,247 $ 12,429,905 $ 12,640,098 $ 17,903,468 $ 26,039,631 $ Source: City of Carmel-by-the-Sea Finance Department

City of Carmel-by-the-Sea TABLE 4
Last Ten Fiscal Years
2013 2014 2015 2016 2017
Revenues
Taxes $ 12,505,034 $ 12,727,944 $ 17,420,784 $ 18,014,079 $ 19,041,911 Intergovernmental revenues 609,304 3,864,416 874,152 294,952 365,304 License and permits 1,195,092 1,114,927 720,257 788,578 850,547 Contributions 354,785 313,895 686,025 314,600 323,495
Fines and forfeitures 133,168 138,713 119,152 111,930 87,154 Charges for services 738,366 508,563 905,526 712,321 440,439 Interest - - - - -
Rents and concessions 314,248 284,674 163,648 163,875 182,367 Other revenues 109,392 193,336 249,537 389,136 1,979,561 Total revenues 15,929,815 19,176,042 21,139,081 20,789,471 23,270,778 Expenditures
General government 3,029,816 4,305,440 3,593,094 5,045,332 5,681,103 Community Planning and Building - - - - -
Public Safety 4,026,884 4,245,184 6,398,876 6,264,950 7,033,862 Public Works 1,341,604 1,609,402 1,284,030 1,301,160 2,554,752 Library - - - - -
Community Activities - - - - -
Economic Revitalization 304,587 363,342 315,780 306,505 351,425 Building maintenance 2,263,763 2,798,314 1,637,602 1,525,038 1,138,983 Forest, parks and beach 466,021 468,247 544,902 547,211 108,764 Culture and recreation 1,918,196 1,963,003 1,999,728 2,054,872 1,448,129 Capital Outlay 651,785 1,993,305 2,396,667 4,439,279 1,877,053 Debt Service
Principal 410,434 927,774 1,046,128 898,379 914,105
Interest and fiscal charges 328,994 357,840 360,610 337,915 323,649 Total expenditures 14,742,084 19,031,851 19,577,417 22,720,641 21,431,825 Excess of revenues
over (under) expenditures 1,187,731 144,191 1,561,664 (1,931,170) 1,838,953 Other financing sources (uses)
Asset dispositions 2,346 19,248 - - -
Long-term debt issued 6,280,000 - - - -
Retirement of PERS side fund (6,280,000) - - - -
Payments to refunded bonds escrow agent - - - - -
Interagency transfers in (out) - - - - -
Transfers in 6,301,989 9,724,198 4,927,935 6,483,069 3,405,710 Transfers out (6,301,989) (9,724,198) (4,927,935) (6,483,069) (3,405,710) Total other financing sources (uses) 2,346 19,248 - - - Net change in fund balances $ 1,190,077 $ 163,439 $ 1,561,664 $ (1,931,170) $ 1,838,953 Total Expenditures $ 14,742,084 $ 19,031,851 $ 19,577,417 $ 22,720,641 $ 21,431,825 Capitalized Portion of Capital Outlay 651,397 1,993,170 2,396,667 4,311,179 1,870,844 Total Non-Capitalized Expenditures $ 14,090,687 $ 17,038,681 $ 17,180,750 $ 18,409,462 $ 19,560,981 Debt Service: Principal & Interest $ 739,428 $ 1,285,614 $ 1,406,738 $ 1,236,294 $ 1,237,754 Debt service as a percentage of noncapital
expenditures 5.2% 7.5% 8.2% 6.7% 6.3%
Source: City of Carmel-by-the-Sea Finance Department Cont'd Changes in Fund Balances of Governmental Funds
Note: In 2012 and 2018, the City changed the classification of its program expenditures and revenues based on operations at the time.

Attachment 2
City of Carmel-by-the-Sea
Last Ten Fiscal Years
Revenues
Taxes
Intergovernmental revenues
License and permits
Contributions
Fines and forfeitures
Charges for services
Interest
Rents and concessions
Other revenues
Total revenues
Expenditures
General government
Community Planning and Building
Public Safety
Public Works
Library
Community Activities
Economic Revitalization
Building maintenance
Forest, parks and beach
Culture and recreation
Capital Outlay
Debt Service
Principal
Interest and fiscal charges
Total expenditures
Excess of revenues
over (under) expenditures
Other financing sources (uses)
Asset dispositions
Long-term debt issued
Retirement of PERS side fund
Payments to refunded bonds escrow agent
Interagency transfers in (out)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balances
Total Expenditures
Capitalized Portion of Capital Outlay
Total Non-Capitalized Expenditures
Debt Service: Principal & Interest
Debt service as a percentage of noncapital
expenditures
Source: City of Carmel-by-the-Sea Finance Department
Changes in Fund Balances of Governmental Funds
Note: In 2012 and 2018, the City changed the classification of its program expenditures and revenues based on operations at the time.

TABLE 4
2018 2019 2020 2021 2022
$ 20,370,569 19,652,166 $ 17,798,280 $ 21,037,561 $ 26,544,389 $ 454,997 1,088,044 1,126,260 1,212,506 1,323,845
1,087,953 1,192,242 928,752 889,822 1,276,260
318,398 314,450 241,324 304,972 371,377
91,813 121,470 72,152 48,947 55,506
1,070,999 1,261,169 1,193,992 1,204,113 1,448,681
58,055 167,544 178,244 40,033 (115,882)
100,899 185,156 130,792 138,138 132,551
211,153 158,029 206,908 193,575 127,327
23,046,433 24,858,673 21,876,704 25,069,667 31,164,054
4,696,923 5,517,516 5,008,054 5,083,467 5,990,601
1,128,977 1,116,689 1,094,736 1,172,337 1,550,702
7,024,092 7,617,310 7,774,916 7,833,156 8,236,353
2,769,129 2,902,461 2,847,091 2,635,206 3,184,957
1,217,687 1,258,390 1,344,340 917,694 929,258
141,378 179,426 209,554 82,366 136,788
1,095,636 1,103,993 1,076,542 808,540 1,033,307
- - - - -
- - - - -
- - - - -
1,833,014 3,778,271 869,596 98,907 149,872

934,860 950,770 971,460 640,000 660,000
302,202 286,606 272,721 406,525 199,212
21,143,898 24,711,432 21,469,010 19,678,198 22,071,050
1,902,535 147,241 407,694 5,391,469 9,093,004
- - - - -
- - - 4,761,901 -
- - - - -
- - - (4,890,000) -
31,000 - - - -
13,924,490 4,581,594 3,188,456 3,210,000 5,217,994
(16,713,387) (4,681,594) (3,385,956) (3,210,000) (6,174,835) (2,757,897) (100,000) (197,500) (128,099) (956,841)
$ (855,362) $ 47,241 $ 210,194 $ 5,263,370 $ 8,136,163
$ 21,143,898 $ 24,711,432 $ 21,469,010 $ 19,678,198 $ 22,071,050 1,900,132 3,533,858 918,075 133,875 151,238
$ 19,243,766 $ 21,177,574 $ 20,550,935 $ 19,544,323 $ 21,919,812 $ 1,237,062 $ 1,237,376 $ 1,244,181 $ 1,046,525 $ 859,212

6.4% 5.8% 6.1% 5.4% 3.9%
Concluded

Attachment 2
City of Carmel-by-the-Sea TABLE 5
General Governmental Tax Revenues by Source
Last Ten Fiscal Years
Sales Transient Business
Property and Use Franchise Occupancy License Other Tax Total $ 4,652,176 $ 2,760,414 $ 981,831 $ 4,615,598 $ 577,364 $ - $ 13,587,383 $ 4,881,534 $ 5,115,880 $ 994,468 $ 5,185,880 $ 549,190 $ - $ 16,726,952 $ 5,127,974 $ 5,280,418 $ 430,430 $ 5,280,418 $ 606,128 $ 382,145 $ 17,107,513 $ 5,598,743 $ 4,897,325 $ 587,514 $ 5,890,538 $ 626,625 $ 413,334 $ 18,014,079 $ 5,825,889 $ 5,373,800 $ 672,554 $ 6,112,347 $ 649,525 $ 436,073 $ 19,070,188 $ 6,192,126 $ 5,486,449 $ 637,136 $ 6,329,074 $ 544,392 $ 462,989 $ 19,652,166 $ 6,524,331 $ 5,732,885 $ 636,397 $ 6,882,015 $ 594,941 $ - $ 20,370,569 $ 6,690,948 $ 4,766,762 $ 632,833 $ 5,115,271 $ 592,466 $ - $ 17,798,280 $ 7,389,657 $ 7,028,041 $ 756,358 $ 5,339,285 $ 524,220 $ - $ 21,037,561 $ 7,694,722 $ 9,596,727 $ 851,738 $ 7,787,643 $ 613,559 $ - $ 26,544,389 Source: City of Carmel-by-the-Sea Finance Department
Fiscal Year
Ended
June 30
2014
2016
2015
2017
2018
2013
2019
2020
2021
2022
$-
$5
$10
$15
$20
$25
$30
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Year
General Governmental Tax Revenue by Year

Attachment 2
City of Carmel-by-the-Sea TABLE 6
General Fund Revenues by Source
Last Ten Fiscal Years
Fiscal Year
Ended June 30 Taxes
InterGovernmentalLicenses and
Permits Contributions
Fines and
Forfeitures
Charges for
Services
Interest, Rents
and
Concessions
Other
Revenues Total
2013 12,505,034 $ 378,410 $ 1,011,292 $ 3,884 $ 16,647 $ 88,200 $ 283,233 $ 109,392 $ 14,396,092 $ 2014 12,727,944 $ 481,310 $ 997,334 $ - $ 30,489 $ 106,065 $ 313,076 $ 193,336 $ 14,849,554 $ 2015 14,702,528 $ - $ 504,419 $ - $ 9,246 $ 256,097 $ 161,620 $ 249,537 $ 15,883,447 $ 2016 15,124,699 $ 74,014 $ 553,602 $ - $ 7,245 $ 57,818 $ 159,632 $ 389,136 $ 16,366,146 $ 2017 16,296,757 $ 136,367 $ 762,257 $ - $ 8,422 $ 66,957 $ 170,631 $ 1,979,561 $ 19,420,952 $ 2018 16,753,721 $ 42,846 $ 1,087,953 $ - $ 91,813 $ 1,056,205 $ 123,382 $ 211,133 $ 19,367,053 $ 2019 17,290,655 $ 583,573 $ 1,192,242 $ - $ 121,470 $ 1,251,072 $ 309,418 $ 132,776 $ 20,881,206 $ 2020 17,798,280 $ 610,960 $ 928,752 $ - $ 72,152 $ 1,177,695 $ 273,176 $ 165,131 $ 21,026,146 $ 2021 17,030,457 $ 693,873 $ 889,822 $ - $ 48,947 $ 1,198,569 $ 164,929 $ 171,329 $ 20,197,926 $ 2022 20,573,925 $ 678,437 $ 1,276,260 $ - $ 55,506 $ 1,446,442 $ $ 18,014 $ 127,327 $ 24,175,911 Source: City of Carmel-by-the-Sea Finance Department
$-
$5
$10
$15
$20
$25
$30
Millions
Total General Fund Revenues

Attachment 2
City of Carmel-by-the-Sea TABLE 7
Net Assessed Value of Taxable Property
Last Ten Fiscal Years
Total Total
Assessed Direct Tax
Secured Unsecured Value Rate

$ 3,001,630,584 $ 28,759,821 $ 3,030,390,405 1.00%
$ 3,153,416,179 $ 27,307,767 $ 3,180,723,946 1.00%
$ 3,309,856,089 $ 26,813,656 $ 3,336,669,745 1.00%
$ 3,569,065,524 $ 26,719,717 $ 3,595,785,241 1.00%
$ 3,766,258,441 $ 26,280,598 $ 3,792,539,039 1.00%
$ 3,999,182,757 $ 25,708,168 $ 4,024,890,925 1.00%
$ 4,220,683,852 $ 26,668,954 $ 4,247,352,806 1.00%
$ 4,446,041,301 $ 28,251,679 $ 4,474,292,980 1.00%
$ 4,686,463,940 $ 31,785,264 $ 4,718,249,204 1.00%
$ 4,933,554,941 $ 31,058,835 $ 4,964,613,776 1.00%

Notes:

Total Direct Tax Rate is from Table 8. Rates are based on a $100 of taxable value.

Exempt values are not included in Total.

Source: County of Monterey Assessors Office
2021
With the passage of a constitutional amendment (Proposition 13) and subsequently enacted State legislation, property is assessed according to a base year rather than on a percentage of market value. Accordingly, a reliable estimate of actual value of taxable property within the City is not possible. 2014
2015
2016
2017
2018
2019
2022
2013
Fiscal Year
Ended
June 30
2020
$-
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Billions
Total Assessed Value

Attachment 2
City of Carmel-by-the-Sea TABLE 8
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of Taxable Value)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Direct Rates: (1) 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Overlapping Rates: (2)
Carmel Unified 0.014 0.014 0.014 0.014 0.014 0.014 0.016 0.015 0.010 0.015 Monterey Peninsula Community College 0.022 0.022 0.022 0.022 0.022 0.022 0.021 0.021 0.027 0.032 Total Direct and Overlapping Rate 1.036 1.036 1.036 1.036 1.036 1.036 1.037 1.036 1.037 1.047 City Share of 1% Levy per Prop. 13 (3) 0.913 0.903 0.904 0.918 0.925 0.929 0.919 0.906 0.918 0.929 Notes:
1 2
3 Source: County of Monterey Assessors Office
Source: County of Monterey CAFR
The passage of a constitutional amendment (Proposition 13) in June 1978 limits the property tax rate to a base of $1.00 per $100.00. The $1.00 rate is levied by the County and apportioned to local agencies according to a formula prescribed by the California legislature.

Overlapping rates are those of entities that apply to property owners within the City of Pacific Grove. Not all overlapping rates apply to all property owners (e.g., the rates for school districts apply only to the proportion of the city's property owners whose property is located within the geographic boundaries of the school district).

This is the percentage of $1 countywide tax levy

Attachment 2
City of Carmel-by-the-Sea TABLE 9
Principal Property Tax Owners
Current Year and Nine Years Ago
Percentage Percentage
of Total of Total
Assessed Assessed Assessed Assessed
Tax Owner Valuation Rank Valuation Valuation Rank Valuation OWRF CARMEL LLC $ 60,224,916 1 1.21% na na
ESPERANZA CARMEL COMMERCIAL LLC 54,429,029 2 1.10% na na HINES JEFFREY C 35,797,503 3 0.72% na na
PAUL ANDREW M 30,284,601 4 0.61% na na
ESPERANZA CARMEL LLC 22,617,692 5 0.46% na na
GUNNER RICHARD V & MARGARET S GUNNER TRS 22,162,521 6 0.45% na na LA PLAYA CARMEL HOTEL LLC 18,089,171 7 0.36% na na
PORTER ALAN R 14,522,261 8 0.29% na na
LEVETT FAMILY PROPERTIES LLC 13,280,891 9 0.27% na na
SENTIMENTAL JOURNEY LLC 12,785,444 10 0.26% na na
Totals $ 284,194,029 5.72% $ - na
Total assessed value $ 4,964,613,776 $ -
Source: County of Monterey Assessors Office
na= not available
2022 2013

Attachment 2
City of Carmel-by-the-Sea Table 10
Property Tax Levies and Collections
Last Ten Fiscal Years
Percent Supplemental Delinquent
Total Tax Current Tax of Levy Tax Tax Total
Levy Collections 1 Collected Collections Collections Collections

$ 4,540,524 4,652,176 $ 97.6% $ 90,301 93,380 $ $ 4,724,204 $ 4,769,259 4,881,534 $ 97.7% $ 73,000 95,355 $ $ 4,937,613 $ 4,994,647 5,127,974 $ 97.4% $ 74,547 117,309 $ $ 5,186,503 $ 5,453,176 5,598,743 $ 97.4% $ 80,397 106,567 $ $ 5,640,139 $ 5,691,894 5,825,889 $ 97.7% $ 76,128 124,505 $ $ 5,892,527 $ 6,049,707 6,192,126 $ 97.7% $ 80,914 132,332 $ $ 6,262,953 $ 6,242,449 6,524,331 $ 95.7% $ 64,523 107,412 $ $ 6,414,384 $ 6,537,056 6,690,948 $ 97.7% $ 66,171 110,155 $ $ 6,713,382 $ 6,712,274 7,389,657 $ 90.8% $ 85,217 144,856 $ $ 6,942,347 $ 7,612,601 7,694,722 $ 98.9% $ 83,468 174,951 $ $ 7,871,020 Source: County of Monterey Auditor-Controller's Office
City of Carmel-by-the-Sea Finance Department
2022
Fiscal
Year
Ended
June 30
2016
2013
2014
2015
2018
2019
2020
2021
2017
$-
$1
$2
$3
$4
$5
$6
$7
$8
$9
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Millions
Total Tax Collections

Attachment 2
City of Carmel-by-the-Sea Table 11
Ratios of Outstanding Debt By Type
Last Ten Fiscal Years
Pension Lease NGEN Fire Total Median Percentage Debt
Obligation Revenue Public Safety Capital Outstanding Household of Household per Bonds Bonds Joint Agree Loan Debt Income Income Population Capita $ 6,165,000 $ 7,010,000 $ 320,375 349,372$ $ 13,844,747 $ 71,719 0.52% 3,840 3,605 $ 3,585,000 $ 6,725,000 $ 303,366 137,387$ $ 10,750,753 $ 62,460 0.58% 3,867 2,780 $ 5,005,000 $ 6,435,000 $ 264,625 -$ 11,704,625 $ $ 74,758 0.64% 3,886 3,012 $ 4,420,000 $ 6,140,000 $ 246,246 -$ 10,806,246 $ $ 81,607 0.76% 3,903 2,769 $ 3,825,000 $ 5,840,000 $ 227,141 -$ 9,892,141 $ $ 87,532 0.88% 3,897 2,538 $ 3,220,000 $ 5,530,000 $ 207,281 -$ 8,957,281 $ $ 87,532 0.98% 3,897 2,299 $ 2,605,000 $ 5,215,000 $ 186,511 -$ 8,006,511 $ $ 87,532 1.09% 3,987 2,008 $ 1,980,000 $ 4,890,000 $ 157,741 -$ 7,027,741 $ $ 98,638 1.40% 3,949 1,780 $ 1,340,000 $ 4,761,901 $ 165,051 -$ 6,266,952 $ $ 98,188 1.82% 4,023 1,558 $ 680,000 $ 4,733,004 $ 165,051 -$ 5,578,055 $ $ 101,696 1.82% 3,041 1,834

Source: City of Carmel-by-the-Sea Finance Department
Demographics from Table 16
2014
2015
Governmental Activities
2022
Fiscal Year
June 30
Ending
2013
2016
2017
2018
2019
2020
2021

Attachment 2
City of Carmel-by-the-Sea TABLE 12
Ratios of Net General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal Less: Amount
Year General Lease Available Net Percentage Debt
Ended Obligation Revenue in Debt Obligation of Assessed Per Assessed June 30 Bonds Bonds Service Fund Total Value Capita Value Population 2013 $ 6,165,000 $ 7,010,000 $ 400,007 $ 12,774,993 0.42% 3,327 $ $ 3,030,390,405 3,840 2014 $ 5,585,000 $ 6,725,000 $ 400,014 $ 11,909,986 0.37% 3,080 $ $ 3,180,723,946 3,867 2015 $ 5,005,000 $ 6,435,000 $ 400,015 $ 11,039,985 0.33% 2,841 $ $ 3,336,669,745 3,886 2016 $ 4,420,000 $ 6,140,000 $ 400,381 $ 10,159,619 0.28% 2,603 $ $ 3,595,785,241 3,903 2017 $ 3,825,000 $ 5,840,000 $ 400,582 $ 9,264,418 0.24% 2,377 $ $ 3,792,539,039 3,897 2018 $ 3,220,000 $ 5,530,000 $ 405,742 $ 8,344,258 0.21% 2,141 $ $ 4,024,890,925 3,897 2019 $ 2,605,000 $ 5,215,000 $ 402,335 $ 7,417,665 0.17% 1,860 $ $ 4,247,352,806 3,987 2020 $ 1,980,000 $ 4,890,000 $ 400,381 $ 6,469,619 0.14% 1,638 $ $ 4,474,292,980 3,949 2021 $ 1,340,000 $ 4,761,901 $ 393,132 $ 5,708,769 0.12% 1,419 $ $ 4,718,249,204 4,023 2022 $ 680,000 $ 4,733,004 $ 416,577 $ 4,996,427 0.10% 1,643 $ $ 4,964,613,776 3,041 Source: California Department of Finance
City of Carmel-by-the-Sea Finance Department
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Bonded Debt Outstanding

Attachment 2
City of Carmel-by-the-Sea TABLE 13
Computation of Direct and Overlapping Debt
2021-2022 Assessed Value $ 4,964,613,776
Total Percentage Amount
Debt Applicable Applicable
Outstanding to City (1) to City
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT:

Monterey Peninsula Community College District $ 131,478,522 11.667% 15,339,599 $ Carmel Unified School District 17,643,445 24.152% 4,261,245 Total Direct and Overlapping Tax and Assessment Debt $ 149,121,967 $ 19,600,844 DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Monterey County General Fund Obligations 129,741,182 6.457% 8,377,388 Monterey County Judgment Obligations 4,772,000 6.457% 308,128 Monterey County Water Resources Agency Gen Fund Debt 19,580,000 6.457% 1,264,281 City of Carmel-by-the-Sea General Fund Obligations 4,733,004 100.000% 4,733,004 City of Carmel-by-the-Sea Pension Obligation Bonds 680,000 100.000% 680,000 Total Gross Direct and Overlapping General Fund Debt 15,362,801 Less: Monterey County supported obligations 198,881
TOTAL NET DIRECT AND OVERALAPPING GENERAL FUND DEBT $ 15,163,920 TOTAL DIRECT DEBT $ 5,413,004
TOTAL GROSS OVERLAPPING DEBT $ 29,550,641
TOTAL NET OVERLAPPING DEBT $ 29,351,760
GROSS COMBINED TOTAL DEBT 2 $ 34,963,645
NET COMBINED TOTAL DEBT $ 34,764,764
Notes:
(1)
(2)
Ratios to 2021-22 Assessed Valuation:

Direct Debt
Total Direct and Overlapping Tax and Assessment Debt 0.39% Total Direct Debt 0.11%
Gross Combined Total Debt 0.70%
Net Combined Total Debt 0.70%
Source: MuniServices, LLC
Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue, and tax allocation bonds and non-bonded capital lease obligations.

June 30, 2022
The percentage of overlapping debt applicable to the City is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the City divided by the district's total taxable assessed value.

Attachment 2
City of Carmel-by-the-Sea TABLE 14
Legal Debt Margin InformationLast Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Debt limit $ 113,639,640 $ 119,277,148 $ 125,125,115 $ 134,841,947 $ 142,220,214 $ 150,933,410 $ 159,275,730 167,785,987 176,934,345 186,173,017 Total net debt applicable to limit - - - - - - - - - -
Legal debt margin $ 113,639,640 $ 119,277,148 $ 125,125,115 $ 134,841,947 $ 142,220,214 $ 150,933,410 $ 159,275,730 $ 167,785,987 $ 176,934,345 $ 186,173,017 Total net debt applicable to the limit
as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Notes: Legal Debt Margin Calculation For Fiscal Year 2019-20:

Total assessed value $ 4,964,613,776Debt limit (3.75% of total assessed value) 186,173,017Debt applicable to limit:

General obligation bonds -
Less: Amount available in debt service fund
Source: City of Carmel by the Sea Finance Department for repayment of bonds - Total net debt applicable to limit -Legal debt margin $ 186,173,017 California Government Code, Section 43605, sets the debt limit at 15% of the total assessed valuation of all real personal property within the city, when assessed values were at 25% of full market value. This has changed to 100% of full market value, with the rate adjusting to 1/4 of 15%.

City of Carmel-by-the-Sea TABLE 15
Pledged-Revenue CoverageLast Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Sunset Center Certificates of Participation
General City Revenues $ 15,932,161 $ 19,195,290 $ 21,139,081 $ 22,406,471 $ 21,653,778 $ 23,167,967 $ 24,061,114 $ 21,424,311 $ 26,120,715 $ 30,552,025 Less: operating expenses (21,259,578) (15,512,429) (16,332,293) (17,552,771) (18,716,522) (19,407,105) (20,069,662) (20,883,375) (18,148,230) (22,576,272) Net available revenue (5,327,417) 3,682,861 4,806,788 4,853,700 2,937,256 3,760,862 3,991,452 540,936 7,972,485 7,975,753 Debt service:

Principal 285,000 285,000 290,000 295,000 300,000 310,000 315,000 325,000 - - Interest 225,463 219,763 213,963 208,063 202,063 198,188 190,375 173,320 106,957 155,798 Total 510,463 504,763 503,963 503,063 502,063 508,188 505,375 498,320 106,957 155,798 Coverage (10.44) 7.30 9.54 9.65 5.85 7.40 7.90 1.09 74.54 51.19 Pension Obligation Bonds
General City Revenues $ 15,932,161 $ 19,195,290 $ 21,139,081 $ 22,406,471 $ 21,653,778 $ 23,167,967 $ 24,061,114 $ 21,424,311 $ 26,120,715 $ 30,552,025 Less: operating expenses (21,259,578) (15,512,429) (16,332,293) -17,552,771 (18,716,522) (19,407,105) (20,069,662) (20,883,375) (18,148,230) (22,576,272) Net available revenue (5,327,417) 3,682,861 4,806,788 4,853,700 2,937,256 3,760,862 3,991,452 540,936 7,972,485 7,975,753 Debt service:

Principal 115,000 580,000 580,000 585,000 595,000 605,000 615,000 625,000 640,000 660,000 Interest 57,848 122,593 118,243 112,443 105,131 96,206 85,120 71,892 57,666 40,414 Total 172,848 702,593 698,243 697,443 700,131 701,206 700,120 696,892 697,666 700,414 Coverage (30.82) 5.24 6.88 6.96 4.20 4.91 5.70 0.78 11.43 11.39 Combined coverage (7.80) 3.05 4.00 4.04 2.44 2.85 3.31 3.31 9.91 9.32 Source: City of Carmel-by-the-Sea Finance DepartmentDetails regarding the city's outstanding debt can be found in the notes to the financial statements. Operating expenses do not include interest or depreciation.

City of Carmel-by-the-Sea TABLE 16
Demographic and Economic Statistics
Last Ten Fiscal Years
Median Per Capita % of Population % of Population
Unemployment Household Family Median 25+ with High 25+ with Population1 Rate2 Income Income3 Age School Diploma Bachelor's Degree 3,840 1.90% $ 71,719 $ 46,391 53.9 96.60% 60.80%
3,867 1.60% $ 62,460 $ 45,928 55.1 95.70% 57.60%
3,886 1.40% $ 74,758 $ 49,425 54.3 97.30% 58.60%
3,903 1.30% $ 81,607 $ 51,778 53.1 97.30% 63.70%
3,897 1.20% $ 87,532 $ 57,307 55.8 96.90% 64.70%
3,897 1.10% $ 87,532 $ 57,307 55.8 96.90% 64.70%
3,987 1.10% $ 87,532 $ 57,307 55.8 96.90% 64.80%
3,949 0.70% $ 81,607 $ 51,778 61.3 97.30% 63.70%
4,023 0.10% $ 98,188 $ 53,961 59.6 82.72% 55.03%
3,041 0.10% $ 101,696 $ 55,889 65.0 95.80% 74.70%
Notes:

A For calendar year ending during the fiscal year.

B Total Personal Income is presented in thousands.

Source: 1
California Department of Finance
2 California Employment Development Department
3 U.S. Department of Commerce, Bureau of Economic Analysis 2014
Fiscal Year
Ended
June 30
2013
2022
2021
2015
2016
2017
2018
2019
2020
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
$50,000
$55,000
$60,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%
Per Capita Personal Income
Unemployment Rate
Per Capita Personal Income and Unemployment Rate
Unemployment Rate2 Per Capita Family Income3

Attachment 2
City of Carmel-by-the-Sea TABLE 17
Principal Employers
Current Year and Nine Years Ago (1)
Percentage Percentage
Number of of Total Number of of Total
Employees Rank Employment Employees Rank Employment
Employer: .

Mirabel Group 128 1 6.63% na na na
Pepe International 120 2 6.22% na na na
Dametra 108 3 5.60% na na na
City of Carmel 82 4 4.25% na na na
Cypress Inn 76 5 3.94% na na na
Carmel Preferred Restaurant Gr 66 6 3.42% na na na
3 Carmel Restaurants Group 65 7 3.37% na na na
Classic Hotels & Resorts 65 8 3.37% na na na
Alain Pinel Realtors 65 9 3.37% na na na
Carmel Realty Co. 59 10 3.06% na na na
Totals 706 43.21%
Total employment 1,930
Notes: This is the second year that the City is including a statistical section. Due to the small size of the City, employee counts for prior years were not available through a database or third party. Prior year information will be included as the City reports this information in forthcoming years.

Source: City of Carmel-by-the-Sea Finance Department
2022 2013
Fiscal Year Ended June 30

Attachment 2
City of Carmel-by-the-Sea TABLE 18
Number of City Employees by Department
Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Departments:

General Government 10.78 10.72 18.20 17.60 18.60 16.20 15.70 15.66 15.00 15.00 Public Safety 28.02 28.80 30.70 30.70 31.70 32.00 32.00 25.00 27.02 24.00 Public Works 13.90 14.00 18.00 21.00 21.00 21.00 21.00 15.00 13.15 18.00 Community Activities 1.43 1.70 1.70 1.50 1.40 1.50 1.50 0.50 1.18 1.00 Library 11.65 11.60 12.40 12.40 12.80 14.00 13.98 10.40 5.50 11.00 Community Plng. and Bldg. 9.68 10.02 7.00 7.00 9.00 9.00 9.00 7.00 6.97 11.00 Totals 75.74 81.27 87.40 91.20 92.10 93.20 93.14 68.00 72.21 80.00 Source: City of Carmel-by-the-Sea Finance Department
0 10
20 30
40 50
60 70
80 90
100
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Fiscal Year
Total Number of City Employees

Attachment 2
City of Carmel-by-the-Sea TABLE 19
Operating Indicators By Function
Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function:

Police
Calls for service 10,023 10,889 14,360 13,701 12,674 13,252 11,385 14,813 8,778 8,959 Fire
Calls for service 648 759 925 856 843 1,006 851 803 754 794 Inspections 645 725 636 346 504 112 184 107 822 88
Public Works
Potholes patched 52 25 20 25 50 18
Tree permits Issued 166 90 177 183 216
Calls for service 250 500 300 750 1,455 433
Road asphalt used 34 48 28 44 32
Trees planted 60 32 82 82 59 139 57
Library
Circulation of library materials 155,630 140,848 114,137 106,976 153,227 99,802 104,456 104,456 84,810 55,414 Reference questions 33,176 24,318 20,233 19,252 16,276 15,789 15,789 13,579 37,010 9,062 Community Activities
Special Event permits na 45 30 81 75 42 39 35 5 31
Community Development
Building Permits 286 340 500 422 416 590 580 677 411 446 Architectural Approvals 305 273 466 524 468 452 440 280 171 402 Administration
Business Licenses (All businesses) 1208 1280 1350 1472 1615 1836 2187 2276 1,884 1,984 Public Records Requests (Calendar Yr) 83 143 147 127 160 184 187 199 101 248 Source: City of Carmel-by-the-Sea Departments

Attachment 2
City of Carmel-by-the-Sea TABLE 20
Capital Asset Statistics By Function
Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function:

General Government
Number of buildings 1 1 1 1 1 1 1 1 1 1
Public Safety
Police
Stations 1 1 1 1 1 1 1 1 1 1
Parking meters 11 3 1 1 1 1 1 1 1 1
Fire stations 1 1 1 1 1 1 1 1 1 1
Public Works
Miles of paved streets 27 27 27 27 27 27 27 27 27 27
Parking lots 3 3 3 3 3 3 3 3 3 3
Fleet Vehicles (City-wide) 43 43 43 43 43 45 41 42 44 43 Recreation
Parks 10 10 10 10 10 10 10 10 10 10
Playgrounds 1 1 1 1 1 1 1 1 1 1
Tennis courts 2 2 2 2 2 2 2 2 2 2
Library
Library facilities 2 2 2 2 2 2 22 2 2
Source: City of Carmel-by-the-Sea Departments

Attachment 2

OTHER INDEPENDENT
AUDITOR’S REPORTS

Attachment 2
15105 Concord Circle, Ste. 130, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
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 Mayor and Members of the
City Council of the City of Carmel-By-The-Sea
Carmel-by-the-Sea, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the City of Carmel-By-The-Sea (the “City”) as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 29, 2023.

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 the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free of 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 determination of financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not

Attachment 2
15105 Concord Circle, Ste. 130, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal co ntrol and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

March 29, 2023
Morgan Hill, California

Attachment 2