Agenda packet — Colma City Council, February 23, 2022

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A
GENDA

REGULAR MEETING

CITY COUNCIL OF THE TOWN OF COLMA
Wednesday, February 23, 2022
7:00 PM
The City Council meeting will be conducted virtually pursuant to the provisions of Assembly Bill 361 amending the Ralph M. Brown Act and Government Code Section 54953(e) (and without compliance with section 54953(b)(3)) related to conducting public meetings during the COVID-19 pandemic based on the current State of Emergency and the existing State recommendations on social distancing. The Council Chambers will not be open to the public for this City Council meeting.

M
embers of the public may view the meeting by attending, via telephone or computer, the Zoom Meeting listed below:

Join Zoom Meeting: https://us02web.zoom.us/j/81289976261 Passcode: 074407
Meeting ID: 812 8997 6261
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Find your local number: https://us02web.zoom.us/u/kco5bgxkcc Members of the public may provide written comments by email to the City Clerk at [email protected] before or during the meeting. Emailed comments should include the specific agenda item on which you are commenting or note that your comment concerns an item that is not on the agenda. The length of the emailed comment should be commensurate with the three minutes customarily allowed for verbal comments, which is approximately 250-300 words. Verbal comments will also be accepted during the meeting.

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PLEDGE OF ALLEGIANCE AND ROLL CALL

ADOPTION OF AGENDA

PRESENTATION
• Proclamation in recognition of Black History Month

PUBLIC COMMENTS
Comments on the Consent Calendar and Non-Agenda Items will be heard at this time. Comments on Agenda Items will be heard when the item is called.

CONSENT CALENDAR

1. Motion to Accept the Minutes from the February 9, 2022 Special Meeting.

2. Motion to Adopt a Resolution Authorizing Closing Out Mission Road Bicycle & Pedestrian Improvement Project (CIP #903) and Adding Mission Road Landscaping Enhancements Project (CIP #908) and Mission Road Crosswalk Project (CIP #909) to the FY 2021-22 Capital Improvement Program.

NEW BUSINESS

3. FY 2020-21 AUDITED FINANCIAL STATEMENTS AND REPORTS
Consider: Motion to Adopt a Resolution Accepting Auditor’s Reports and Financial Statements For The Fiscal Year Ending June 30, 2021.

4. FY 2021-22 MID-YEAR FINANCIAL UPDATE & BUDGET AMENDMENT Consider: Motion to Accept the Fiscal Year 2021-22 Mid-Year Financial Report Through December 31, 2021 and Authorizing a Copy to be Posted on the Town’s Website.

STUDY SESSION

5. PUBLIC ART IN COLMA
This item is for discussion only; no action will be taken at this meeting.

6. NEW LAWS IN 2022
This item is for discussion only; no action will be taken at this meeting.

REPORTS
Mayor/City Council
City Manager

ADJOURNMENT
The City Council Meeting Agenda Packet and supporting documents are available for review on the Town’s website www.colma.ca.gov or at Colma Town Hall, 1198 El Camino Real, Colma, CA. Persons interested in obtaining an agenda via e-mail should call Caitlin Corley, City Clerk at 650-997-8300 or email a request to [email protected].

Reasonable Accommodation
Upon request, this publication will be made available in appropriate alternative formats to persons with disabilities, as required by the Americans with Disabilities Act of 1990. Any person with a disability, who requires a modification or accommodation to view the agenda, should direct such a request to Pak Lin, ADA Coordinator, at 650-997-8300 or [email protected]. Please allow two business days for your request to be processed.

Minutes – Special Meeting 02.09.22 Page 1 of 3

MINUTES

SPECIAL MEETING
City Council of the Town of Colma
Meeting Held Remotely via Zoom.us
Wednesday, February 9, 2022
5:30 PM
PLEDGE OF ALLEGIANCE AND ROLL CALL – 5:30 PM
Mayor Helen Fisicaro called the meeting to order at 5:33 p.m.

Council Present –Mayor Helen Fisicaro, Vice Mayor Raquel Gonzalez, Council Members Joanne F. del Rosario, John Irish Goodwin and Diana Colvin were all present.

Staff Present – City Manager Brian Dossey, City Attorney Christopher Diaz, Administrative Services Director Pak Lin, Chief of Police John Munsey, Director of Public Works Brad Donohue, City Planner Farhad Mortazavi, Recreation Services Manager Angelika Abellana, and City Clerk Caitlin Corley were in attendance.

The Mayor announced, “Welcome to another of our completely remote Council Meeting. As always, we are accepting public comments through email or the zoom chat function— you can email our City Clerk at [email protected] or use the chat function to let her know which item you would like to speak on. Please keep your comments to 3 minutes or less.

Thank you.”

ADOPTION OF THE AGENDA
Mayor Fisicaro asked if there were any changes to the agenda; none were requested. She asked for a motion to adopt the agenda.

A
ction: Council Member del Rosario moved to adopt the agenda; the motion was seconded by Council Member Colvin and carried by the following vote:

Name Voting Present, Not Voting Absent
Aye No Abstain Not Participating
Helen Fisicaro, Mayor 
Raquel Gonzalez 
Joanne F. del Rosario 
John Irish Goodwin 
Diana Colvin 
5 0

CONSENT CALENDAR

1. Motion to Accept the Minutes from the January 26 Regular Meeting.

2. Motion to Approve Report of Checks Paid for January 2022.

3. Motion to Reconfirm Findings and Determinations Under Resolution No. 2021-33 and Assembly Bill 361 for the Continuation of Virtual Meetings.

Item #1
Minutes – Special Meeting 02.09.22 Page 2 of 3
Action: Council Member Colvin moved to approve the consent calendar items #1 through 3; the motion was seconded by Vice Mayor Gonzalez and carried by the following vote:

Name Voting Present, Not Voting Absent
Aye No Abstain Not Participating
Helen Fisicaro, Mayor 
Raquel Gonzalez 
Joanne F. del Rosario 
John Irish Goodwin 
Diana Colvin 
5 0

NEW BUSINESS

4. STATUS UPDATE TO 2020-2022 STRATEGIC PLAN
City Manager Brian Dossey presented the staff report. Mayor Fisicaro opened the public comment period after each of the five sections to allow members of the public to speak or ask questions. At 6:39 p.m., resident Ken Gonzalez made a comment during the discussion on the Community section. Council discussion occurred throughout. Council Member Goodwin recused himself from the discussion on two occasions, due to his ownership of property within 500 feet of the projects. First, from 5:46 p.m. to 5:48 p.m., during the discussion of the sale of 1365 Mission Road, the City Clerk removed his audio and video capabilities; and again, from 6:56 p.m. to 6:58 p.m. during the discussion of the Mission Road Improvement Project, the City Clerk removed his audio and video capabilities.

Action: Council Member Goodwin moved to Accept Update to 2020-2022 Town of Colma Strategic Plan; the motion was seconded by Council Member del Rosario and carried by the following vote:

Name Voting Present, Not Voting Absent
Aye No Abstain Not Participating
Helen Fisicaro, Mayor 
Raquel Gonzalez 
Joanne F. del Rosario 
John Irish Goodwin 
Diana Colvin 
5 0

ADJOURNMENT AND CLOSE IN MEMORY
Mayor Fisicaro adjourned the meeting at 7:19 p.m. in memory of Alida Silva, mother of former longtime Council Member Joe Silva; James Hollis, longtime Colma resident who was very active in the recreation department; Frawley Lynch, longtime community member and Colma Historical Association supporter; Captain Vidal “Max” Fortuna, Stockton Fire Captain who was killed while on duty last week; and Daniel Grant, brother of Sergeant Christopher Grant.

Minutes – Special Meeting 02.09.22 Page 3 of 3
Respectfully submitted,

Caitlin Corley
City Clerk

Staff Report Mission Road Project Update Page 1 of 3

STAFF REPORT
T
O: Mayor and Members of the City Council
FROM: Brad Donohue, Director of Public Works
Pak Lin, Administrative Services Director
VIA: Brian Dossey, City Manager
MEETING DATE: February 23, 2022
SUBJECT: Mission Road Projects Update

RECOMMENDATION
Staff recommends that the City Council adopt the following:

RESOLUTION AUTHORIZING CLOSING OUT MISSION ROAD BICYCLE & PEDESTRIAN IMPROVEMENT PROJECT (CIP #903) AND ADDING MISSION ROAD LANDSCAPING ENHANCEMENTS PROJECT (CIP #908) AND MISSION ROAD CROSSWALK PROJECT (CIP #909) TO THE FY 2021-22 CAPITAL IMPROVEMENT PROGRAM.

EXECUTIVE SUMMARY
In a City Council Study Session in April of 2021, the City Council reviewed the merits of obtaining a portion of Holy Cross’ property that fronts Mission Road for the purposes of landscaping and providing added beautification for the residents and businesses in the Mission Road area. At the same meeting, staff was directed to construct a high visible crosswalk near the north entrance of Holy Cross to assist members of the public who wish to cross the street in that location.

A
t the time it was assumed that both the landscaping project and the crosswalk project would be packaged together in one bid solicitation as an additional phase to the Mission Road Bicycle and Pedestrian Improvement Project. After reviewing the scope of work for the landscape project and the street project, it is clear the projects will require different contractors with completely different skill sets. Staff has determined that in the best interest of attracting competitive bids, the two projects should be package separately and not together.

St
aff recommends that City Council closeout the Mission Road Bicycle and Pedestrian Improvement Project (CIP #903) and amend the FY 2021-22 Capital Improvements Program (CIP) to include two new capital projects, the Mission Road Landscaping Enhancements Project (CIP #908) and Mission Road Crosswalk Project (CIP #909) Item #2
Staff Report Mission Road Project Update Page 2 of 3

FISCAL IMPACT
There is no fiscal impact to close out CIP #903 and add CIP #908 and CIP #909 to the FY 2021-22 CIP.

BACKGROUND
The Town applied for and was granted funds to improve pedestrian and bicycle mobility in the Mission Road area. What originally started off as an improvement project for ADA upgrades and bike path improvements has grown into a project to help revitalize the Mission Road Commercial/Residential District by providing continuous pedestrian walkways and bicycle paths, installing several high visible crosswalks, street lighting, green landscaping infrastructure and other improvements.

CIP #903 was completed in July 2021, and a notice of completion was approved by the City Council on July 14, 2021, and filed with the County of San Mateo. The total project cost of CIP #903 was $2,860,000, with $1.67 million funded by various Federal, State, and county grants.

With this phase of the project complete, the next phase has begun.

ANALYSIS
On July 28, 2021, the Archdiocese of San Francisco donated a portion of the Holy Cross Cemetery property along Mission Road to the Town. Additionally, the City Council directed staff to reinstall the crosswalk at the North side of the Holy Cross property on one side of the roadway to create a crosswalk that would be in close proximity to an entrance to the Treasure Island Trailer Park. A budget of $40,000 was programed for landscape design, plans and specifications for the open land area that fronts Holy Cross’s property along Mission Road and for the design and plans and specifications for the proposed cross walk.

CIP #903 was originally kept open to account for activities in the design and construction phase of the Mission Road landscape enhancements and the additional crosswalk installation. Since CIP #903 has multiple Federal and State grant funding, it is best to close out the project and create two separate future projects, the Mission Road Landscaping Enhancements Project (CIP #908) and the Mission Road Crosswalk Project (CIP #909). This includes moving the $40,000 City Council approved design budget from CIP #903 to CIP #908 ($29,000) and to CIP #909 ($11,000).

Council Adopted Values
The City Council’s action in authorizing the close out of the Mission Road Project and creating two new project budgets for the remaining portions of work is the responsible course of
action as it will ensure close out of the Mission Road Project which was subject to numerous financial grant requirements.

CONCLUSION
Staff recommends that City Council adopt a resolution authorizing closing out the Mission Road Bicycle & Pedestrian Improvement Project (CIP #903) and adding the Mission Road Landscaping Staff Report Mission Road Project Update Page 3 of 3
Enhancements Project (CIP #908) and Mission Road Crosswalk Project (CIP #909) projects to the FY 2021-22 CIP and moving design budget from CIP #903 to CIP #908 and CIP #909.

TTACHMENTS
A. Resolution
B. Project Descriptions

Res 2022-##, Mission Road Projects Page 1 of 2
RESOLUTION NO. 2022-##

OF THE CITY COUNCIL OF THE TOWN OF COLMA

The City Council of the Town of Colma hereby resolves:

1. Background.
(a) The Mission Road Bicycle and Pedestrian Improvement Project (CIP #903) was completed in July 2021, and a notice of completion was approved by the City Council on July 14, 2021 and filed with the County of San Mateo;
(b) On July 28, 2021, the Archdiocese of San Francisco donated a portion of the Holy Cross Cemetery property along Mission Road. Additionally, the City Council directed Staff to reinstall the crosswalk at the North side of the Holy Cross property creating a crosswalk that would be in close proximity to an entrance to the Treasure Island Trailer Park; (c) The Mission Road Bicycle and Pedestrian Improvement Project (CIP #903) was kept open to account for activities in the design and construction phase of the Mission Road landscape enhancements and the additional crosswalk installation; and (d) At the time it was assumed that both landscaping project and the crosswalk project would be packaged together in one bid solicitation as an addition phase to the Mission Road Bicycle and Pedestrian Improvement Project (CIP #903).

2. Findings.

The City Council finds as follows:
(a) After reviewing the scope of work for the landscape project and the street project, the projects will require different contractors with completely different skill sets; and (b) Since the Mission Road Bicycle and Pedestrian Improvement Project (CIP #903) has multiple Federal and State grant funding, it is best to close out the project and create two separate projects, the Mission Road Landscaping Enhancements Project (CIP #908) and the Mission Road Crosswalk Project (CIP #909).

3. Order.

Now, therefore, the City Council does hereby order that:
(a) The Mission Road Bicycle and Pedestrian Improvement Project (CIP #903) is closed; (b) The Mission Road Landscaping Enhancements Project (CIP #908) is added to the Fiscal Year 2021-22 Capital Improvement Program;
Attachment A
Res 2022-##, Mission Road Projects Page 2 of 2
(c) The Mission Road Crosswalk Project (CIP #909) is added to the Fiscal Year 2021-22 Capital Improvement Program;
(d) $29,000 of the Mission Road Bicycle and Pedestrian Improvement Project (CIP #903) design budget is moved to the Mission Road Landscaping Enhancements Project (CIP #908) planning and design budget;
(e) $11,000 of the Mission Road Bicycle and Pedestrian Improvement Project (CIP #903) design budget is moved to the Mission Road Crosswalk Project (CIP #909) planning and design budget; and
(f) This resolution shall become effective upon its adoption.

Certification of Adoption
I certify that t he foregoing Resolution No. 2022 -## was duly adopted at a regular meeting of said City Council held on February 23, 2022 by the following vote:

Name Voting Present, Not Voting Absent
Aye No Abstain Not Participating
Helen Fisicaro, Mayor
Diana Colvin
Raquel “Rae” Gonzalez
Joanne F. del Rosario
John Irish Goodwin
Voting Tally

Dated ______________________ ___________________________________ Helen Fisicaro, Mayor

Attest: ____________________________
Caitlin Corley, City Clerk

MISSION ROAD LANDSCAPING (908)
FY 2021-22 BUDGET: $29,000
Description & Scope
After completion of the Mission Road Bicycle and Pedestrian Improvement Project, a second phase of the project was to landscape the open area between Holy Cross’s Historic Rock Wall and the back of sidewalk that fronts Holy Cross Cemetery on Mission Road. The landscape design will be to emphasize drought resitence low maintenance plants and scrubs. The tree pallet will be species of trees that thrive in Colma micro climate along with providing color to enhance the roadway frontage and shade for those who walk through the Mission Road Residential and Business District. The landscape area will have rest stops that will be constructed to meet accessibility requirements, park benches, trash recepticals and a dog mitt station.

Project Status
The project is in the construction drawing phase. The Construction drawing Phase will include Plans that will be ready to go to bid, specifications that will detail out the specifics of the project and a engineer’s estimate for the work and any other associated costs such as contingencies and construction management.

Cost & Funding
Cost for design and preparation of the Plans, specifications and engineers estimate is $29,000. Cost for construction and other associated costs will be presented at the time the project is awarded.

FUNDING SUMMARY AMOUNT
FY 2021-22
General Fund $29,000
$29,000

PROJECT COST AMOUNT
FY 2021-22
Planning & Design (81002) $29,000
$29,000
Schedule
The Construction Plans, Specifications and Estimates (PS&E’s) are scheduled to be completed in March of 2022 and anticipated to go to bid in April/May of 2022.

Impact on Operation
The Plant pallet is will be low maintenance and drought resistance, after the the plants, schrubs and Trees reach some level a maturity annual cost should be brought down substacially. Irriagationwich is a large part of the annual cost is being supplied by Holy Cross.

Attachment B
MISSION ROAD CROSSWALK (909)
FY 2021-22 BUDGET: $11,000
Description & Scope
Design and construct a High Visabile Crosswalk on Mission Road at the Back entrance to the Tresure Island Trailor Park. The High Visible Crosswalk will be delinated with pre-emtive signage, viable pavement markings and pedestrian activated solar powered R ectangular Rapid Flashing Beacons (RRFB’s). A crosswalk option be included in the bid documents as a bid alternative an elevated pedestrian crosswalk, (Speed Hump).

Project Status
The project is in the construction drawing phase. The Construction drawing Phase will include Plans that will be ready to go to bid, specifications that will detail out the specifics of the project and a engineer’s estimate for the work and any other assoc iated costs such as contingencies and construction management.

Cost & Funding
Cost for design and preparation of the Plans, specifications and engineers estimate is $11 ,000. Cost for construction and other associated costs will be presented at the time the project is awarded.

FUNDING SUMMARY AMOUNT
FY 2021-22
General Fund $11,000
$11,000

PROJECT COST AMOUNT
FY 2021-22
Planning & Design (81002) $11,000
$11,000

Schedule
The Construction Plans, Specifications and Estimates (PS&E’s) are scheduled to be completed in March of 2022 and anticipated to go to bid in April/May of 2022.

Impact on Operation
Once installed, annual cost to maintain is neglabale, to replenish street markings is anticipated to be every 3 to 5 years.

Staff Report Auditor’s Report Fiscal Year 2020-21 Page 1 of 5 S

TAFF REPORT
T
O: Mayor and Members of the City Council
FROM: Pak Lin, Administrative Services Director
VIA: Brian Dossey, City Manager
MEETING DATE: February 23, 2022
SUBJECT: FY 2020-21 Audited Financial Statements and Reports

STAFF RECOMMENDATION
Staff recommends that the Council adopt:

RE
SOLUTION ACCEPTING AUDITOR’S REPORTS AND FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDING JUNE 30, 2021
E

XECUTIVE SUMMARY
T
he Town engages R.J. Ricciardi, Certified Public Accountants to conduct an audit and review of the Town’s basic financial statements and compliance reports for Measure A and Measure W Transportation Funds for the Fiscal Year Ending, June 30, 2021 . Additionally, the Auditor has conducted an agreed-upon procedure review of the Town’s Appropriation Limit (Gann Limit) for FY 2021-22. In the audit and review, the Auditor found that:

1. The Basic Financial Statements present the Town’s financial position in a fair and accurate manner in all material aspects and the auditors did not find any notable deficiencies in the Town’s Internal Control.

2. The Auditor has issued separate compliance report s regarding the receipt and use of Measure A and Measure W Transportation funds , per the request of the County of San Mateo.

3. The Auditor reviewed the Appropriations Limit (Gann Limit) calculation and issued a report which had found no exceptions in the calculations.

As part of the audit, the Auditor provided a Management Report documenting their assessment of the Town’s internal controls over financial reporting. As stated on Page 4 of Attachment C, the auditors found no observations.

ISCAL IMPACT
T
his is for reporting purposes. No fiscal impact.

Item #3
Staff Report Auditor’s Report Fiscal Year 2020-21 Page 2 of 5

BACKGROUND

The Town’s financial statements are prepared in accordance with the generally accepted accounting principles (GAAP) and reporting requirements of the Governmental Accounting Standard Board (GASB).

For Fiscal Year ending June 30, 2021 , the Town engaged R.J. Ricciardi, CPA to conduct an independent audit and review of the Town’s financial statement for the fiscal year ending June 30, 2021. The audit includes the agreed-upon procedures, review, and audit of various reports.

The Auditor’s opinion on the following reports are attached as B through F.

• The Annual Comprehensive Financial Report (ACFR) for FY 2020-21, • Management Report for FY 2020-21,
• Measure A Fund Component Unit Financial Statements for FY 2020-21, • Measure W Fund Component Unit Financial Statements for FY 2020-21, and • Appropriations Limit Calculation for FY 2021-22.

A representative from the firm will be at the Council meeting to present the audit and answer any questions the Council may have.

ANALYSIS

Overall, the Town received a “clean” audit for FY 2020 -21 with no adverse findings or recommendations. As part of the audit, R.J. Ricciardi also assessed the Town’s internal control and noted in Attachment C, FY 20 20-21 Management Reports that they did not find any observations.

Report Organization

1. Annual Comprehensive Financial Report (Attachment B).

The Annual Comprehensive Financial Report (ACFR or Annual Report) for Fiscal Year Ending June 30, 202 1 has more content than the previous years’ basic financial statements. The Annual Report is organized into three major sections:

a. INTRODUCTORY SECTION has the Table of Contents, Town Officials, and Town Organization Chart . The Transmittal Letter was added in accordance with ACFR guidelines.

b. FINANCIAL SECTION contains the Independent Auditors’ Report, Management’s Discussion & Analysis (MD&A), Basic Financial Statements, Notes to Basic Financial Statements, Required Supplemental Information, and Supplementary Information.

Staff Report Auditor’s Report Fiscal Year 2020-21 Page 3 of 5

Independent Auditors’ Report summarizes the auditor s’ responsibility regarding the financial statements, their audit opinion, and other matters and information in the Financial Report.

Management Discussion & Analysis (MD&A) for FY 2020-21 (Pg. 3-17), provides highlights on the Town’s financial condition, overall economic conditions, and a FY 2020-21 Budget overview.

The Financial Section presents the Town’s activities in two formats - Governmental- wide financial statements (Pg. 20-22) and Fund Financial Statements (Pg. 23-26).

• Governmental-wide Financial Statements presents both governmental and business -type activities on full -accrued basis. The reconciliations for governmental funds to change from modified accrued basis to full accrued can be found on page 24 and 26 of the report.

• Fund Financial Statements presents major government funds on modified accrued basis and proprietary funds on full-accrued basis.

Reporting the activities in different accounting basis are required by GASB pronouncements. The definition of full -accrued vs modified accrued basis of accounting can be found under Note 1C on Page 31.

Required Supplemental Information (Pg. 61-68) includes a Budget to Actual comparison schedule for the General Fund and historical information on pension and OPEB liabilities.

Supplemental Information (Pg. 71-75) presents the combined Balance Sheet and Schedules of Revenues, Expenditures, and Changes in Fund Balance for all non-major governmental funds. Budget to Actual for non-major funds were added in accordance with ACFR guidelines.

c. S
TATISTICAL SECTION included in pages 78-97 which include multi-year comparisons for key financial data. Several financial trends were added in accordance with ACFR guidelines.

Key Notes and Changes

ACFR VS BASIC FINANCIALS
Annually, the Town is required to submit the audited basic financial state ments to various governing boards. The basic financial statements are prepared in accordance with Generally Accepting Accounting Principles (GAAP) and Governmental Accounting Standard Boards (GASB) guidelines.

In 1945, the Governmental Finance Officers Association (GFOA) established the Annual Comprehensive Financial Report (ACFR) program with the purpose of providing a more comprehensive and detailed illustration of a community’s financial condition. Those who participate in this program may submit the audited ACFR to GFOA for review for Staff Report Auditor’s Report Fiscal Year 2020-21 Page 4 of 5

the “Excellence in Financial Reporting” award. This is the first year, the Town’s financial report is prepared in accordance with GFOA ACFR guidelines.

2. Management Report (Attachment C)
As part of the Audit process the Auditors also review procedures and make recommendations on improvements as part of a Management Report (See Attachment C). The Auditors did not make any reportable findings with the current year work.

3. Measure A Transportation Funds (Attachment D)
The Town receives $65,884 in Measure A Transportation Funds from San Mateo County. The Measure A Program requires the Town to complete a separate audit of these funds (See Attachment D). In addition to financial testing of transactions the Auditors do additional review to provide a reasonable assurance that the Town of Colma has complied with certain provisions of Measure A.

The Town designated $320,000 of Measure A funds for the construction phase of the Mission Road Improvement Project. In FY 2020- 21, the construction phase of the Mission Road Improvement Project was completed, and the $320,000 designated fund was transferred to Fund 32, Colma’s Street Capital Improvement Fund.

4. Measure W Transportation Funds (Attachment E)
The Town receives $ 30,769 per year in Measure W Transportation Funds from San Mateo County. The Measure W Program requires the Town to complete a separate audit of these funds (See Attachment E). In addition to financial testing of transactions the Auditors do additional review to provide a reasonable assurance that the Town of Colma has complied with certain provisions of Measure W.

No Measure W expenditures were made by the Town in FY 2020-21. Staff will allow the fund to accumulate until it is sufficient to be used for a capital project.

5. Appropriations Limit (Attachment F)
Annually the Town is required to calculate an Appropriations Limit which is presented in the Budget and adopted by the Council. State Law does not require an “Audit” of the proceeds of taxes but does require a review completing specific procedures. This review was completed by the Auditors with no exceptions being noted (See Attachment F).

Reasons for the Recommended Action/Findings
Acceptance of the FY 2020-21 audited/reviewed financial statements and reports will authorize Staff to publish and distribute them to various interested parties and ensure compliance with the Town’s debt issuance requirements.

Council Adopted Values

Approval of the attached resolution is consistent with the Council’s core value of responsibility because the annual audit process provides an objective, expert assessment of the Town’s financial condition and financial reporting process.

Staff Report Auditor’s Report Fiscal Year 2020-21 Page 5 of 5

Alternatives
None. In addition to supporting good governance, the completion of Audited Financial Statements is a requirement of the Certificate of Participation (COP) debt issuance and rules imposed by the SEC.

CONCLUSION

Staff recommends the City Council receive the presentation from the Town’s auditor, then adopt a resolution accepting the Auditor’s reports for Fiscal Year 2020-21.

ATTACHMENTS
A. Resolution - Accepting Auditor Reports for FY 2020-21 B. FY 2020-21 Annual Comprehensive Financial Reports
C. FY 2020-21 Management Report
D. FY 2020-21 Measure A Fund Component Unit Financial Statements E. FY 2020-21 Measure W Fund Component Unit Financial Statements F. Independent Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheet

Res. 2022-##, Auditor’s Report Fiscal Year 2020-21 Page 1 of 2 RESOLUTION NO. 2022-##

OF THE CITY COUNCIL OF THE TOWN OF COLMA
RE
SOLUTION ACCEPTING AUDITOR’S REPORTS AND FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDING JUNE 30, 2021
The City Council of the Town of Colma does hereby resolve as follows:

1. Background
(a) R.J. Ricciardi, Certified Public Accountants (Auditor) undertook, pursuant to contract with the Town of Colma, to perform an independent audit of the Town’s FY 20 20-21 Financial Statements and the Town’s FY 2020 -21 Measure A and Measure W Fund Component Unit Financial Statement , and to prepare an Independent Accountants’ Report on Agreed -Upon Procedures Applied to Appropriations Limit Worksheets.
(b) The Auditor reported that it has completed said audit and has found that the financial statements present fairly in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Colma as of June 30, 2021, and the respective changes in the financial position for the year then ended. The Auditor further reported that all the financial statements were in conformity with U.S. generally accepted accounting principles.
(c) The Auditor made no supplemental recommendations on the Town’s financial procedures. (d) The Auditor reviewed the calculation of the Fiscal Year 2021-22 appropriations limit in the amount of $57,274,771. No exceptions were identified in the calculations made by the Town.

2. Findings
The City Council finds that the balances as presented in the Financial Statements for the fiscal year ending June 30, 2021 are accepted and shall be reflected in the Town accounting records.

3. Reports and Audited Statements Accepted
The reports of the Auditor, the Town’s FY 2020-21 Audited Financial Statements, the Town’s FY 2020-21 Audited Measure A and Measure W Fund Component Unit Financial Statement, and the Independent Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets are hereby accepted. The City Manager shall take all necessary steps to file and distribute the reports as required by external agencies. //
//
//
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Attachment A
Res. 2022-##, Auditor’s Report Fiscal Year 2020-21 Page 2 of 2

Certification of Adoption
I certify that the foregoing Resolution No. 2022-## was duly adopted at a regular meeting of the City Council of the Town of Colma held on February 23, 2022, by the following vote:

Name Voting Present, Not Voting Absent
Aye No Abstain Not Participating
Helen Fisicaro, Mayor
Raquel Gonzalez
Joanne F. del Rosario
John Irish Goodwin
Diana Colvin, Mayor
Voting Tally

Dated ______________________ ___________________________________ Helen Fisicaro, Mayor

Attest: ____________________________
Caitlin Corley, City Clerk

Town of Colma, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2021
Attachment B

This Page Left Intentionally Blank

Annual Comprehensive Financial Report
June 30, 2021

Town of Colma, California

ANNUAL COMPREHENSIVE
FINANCIAL REPORT
For the Fiscal Year Ended June 30, 2021

Prepared by
Town of Colma
Administrative Services Department
Town of Colma, California

Introductory Section

Annual Comprehensive Financial Report
June 30, 2021

This Page Left Intentionally Blank

Annual Comprehensive Financial Report
June 30, 2021

TABLE OF CONTENTS
PAGE

INTRODUCTORY SECTION
Table of Contents i-ii
Transmittal Letter iii - vi
Town Officials vii
Town of Colma Organizational Chart viii

FINANCIAL SECTION
Independent Auditors’ Report 1-2
Management’s Discussion and Analysis 3-17
Basic Financial Statements:

Government-wide Financial Statements: 20
Statement of Net Position 21
Statement of Activities 22
Fund Financial Statements: 23
Governmental Funds Balance Sheet 24
Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds 25
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances of
Governmental Funds to the Statement of Activities 26
Propriety Fund Financial Statements: 27
Statement of Net Position – Proprietary Funds 28
Statement of Revenues, Expenses and Changes
in Fund Net Position – Proprietary Funds 29
Statement of Cash Flows – Proprietary Funds 30
Notes to Basic Financial Statements 31-57

REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule – General Fund 61
Notes to Budgetary Comparison Schedule 62
Schedule of the Local Government’s Proportionate Share of Net Pension Liability –- Miscellaneous 63
Schedule of the Local Government’s Proportionate Share of Net Pension Liability – Safety 64
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TABLE OF CONTENTS
PAGE
Schedule of Contributions – Miscellaneous 65
Schedule of Contributions – Safety 66
Schedule of Change in the Net OPEB Liability and Related Ratios 67 Schedule of Town of Colma’s Contributions - OPEB 68

SUPPLEMENTARY INFORMATION
Nonmajor Governmental Funds Combining Balance Sheet 71

Nonmajor Governmental Funds Combining Schedule of
Revenues, Expenditures and Changes in Fund Balances 72
Nonmajor Governmental Funds Combining Schedule of
Revenues, Expenditures and Changes in Fund Balances – Budget and Actual 73-75

STATISTICAL SECTION
Financial Trends - Net Position, by Component 78-79
Financial Trends - Changes in Net Position 80-81
Financial Trends - Fund Balances of Governmental Funds 82-83 Financial Trends - Changes in Fund Balances of Governmental Funds 84-85 Financial Trends – Assessed Value and Estimated Actual Value of Taxable Property 86 Financial Trends – Computation of Direct and Overlapping Property Tax Rates 87 Financial Trends - Principal Taxpayers 88
Financial Trends – Property Tax Levies and Collections 89 Financial Trends – Ratios of Outstanding Debt by Type 90 Financial Trends – Computation of Direct and Overlapping Debt 91 Financial Trends – Legal Debt Margin Information 92
Financial Trends - Demographic and Economic Statistics 93 Financial Trends – Principal Employers 94
Financial Trends – Full Time Equivalent Town Government Employees by Function 95 Financial Trends – Operating Indicators by Function 96
Financial Trends – Capital Statistics by Function 97

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TOWN OF COLMA, CALIFORNIA

TRANSMITTAL LETTER
FOR THE FISCAL YEAR JUNE 30, 2021

February 1, 2022
To the Residents of the Town of Colma,
Honorable Mayor and Members of the Town Council
We are pleased to submit to you the Annual Comprehensive Financial Report (ACFR, “Annual Report”) for the Town of Colma, California (Town), for the year ended June 30, 2021. The Annual Report was prepared in accordance with principles and standards set by the Governmental Accounting Standards Board. The report presents Town’s financial information on an entity-wide basis and at the fund level, with emphasis on the Town’s major funds.

As part of the required presentation, the report includes a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A).

It presents a comparative analysis of current and prior year results, changes in financial position, financial highlights, trends and disclosure of any known significant events or decisions that affect the financial condition of the Town. This transmittal letter is designed to complement the MD&A and should be read in conjunction with it. The Town’s MD&A can be found immediately following the report of the independent auditors in the financial section of this report.

The responsibility for the accuracy of the information and the completeness and fairness of the presentation rests on Town’s management. This inc ludes note disclosures, required supplemental information and statistical summary. We believe that the information reported is accurate in all material respects and its presentation fairly shows the financial position and the results of the Town’s operations.

In providing a reasonable basis for making these representations, management has established a thorough internal control system designed to protect the government ’s assets from loss, theft, or misuse and to compile the necessary information for preparing the Town’s financial statements.

In compliance with State statutes, these financial statements have been audited by the certified public accounting firm of R.J. Ricciardi, Inc. The goal of the independent audit was to provide reasonable assurance that the financial statements of the Town of Colma for the year ended June 30, 2021, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluat ing the overall financial statement presentation.

The independent auditor concluded based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the Town of Colma’s financial statements for the year ended June 30, 2021, are fairly presented in conformity with Generally Accepted Accounting Principles (GAAP). The independent auditor’s report is presented as the first component of the financial section of this report.

PROFILE OF THE GOVERNMENT
The Town of Colma, known as the “City of Souls,” is the smallest city in San Mateo County with 1,659 residents and 1.5 million “souls.” However, Colma is more than just 16 cemeteries. Colma’s commercial buildings make a distinct architectural statement resulting from design standards that encourage Spanish- Mediterranean motifs. Colma boasts an old-world charm all its own, from its brick-paved residential streets and ornamental street lamps, to its restored historical museum and railroad depot located at its 5,500 square foot Community Center. The state-of-the-art Police Station complements the architecture of the historic and charming Town Hall across the street. Within its two square mile boundary, the Town enjoys a strong tax base with two shopping centers, one of Northern California’s most complete collections of car dealerships, and a cardroom. There are two BART stations nearby.

It operates under a Council-Manager form of governm ent. Policy-making and legislative authority are vested in the governing Town Council, which cons ists of five Councilmembers. Town Council members are elected in overlapping four-year terms and, from amongst themselves, select a Mayor and Vice Mayor every December. The Council is responsible for passing ordinances, adopting the budget, and hiring the Town Manager and Town Attorney. The Town Manager is responsible for carrying out the policies and ordinances of the Town Council, for overseeing the day-to-day operations of the Town, and for appointing the Town staff.

The Town provides a full range of essential services through a combination of in-house staff and contract services. Services provided by the Town’s 47.35 full-time equivalent employees include public safety services, maintenance of public infrastructure, recreation, parks, and general management. The Town entered into public-private partnership in areas of planning, building, engineering, code enforcement, trash collection, and staff augmentation.

The cost to provide these essential services are reviewed annually as part of the Town’s operating and capital budget. The annual budget serves as the foundation for the Town’s financial planning, monitoring and control. All departments of the Town are required to submit requests for appropriation to the Town Manager each spring. The Town Manager uses these requests to develop a proposed budget. Prior to June 30 of each year, the Town Manager submits to the Town Council a proposed operating and capital improvement budget for review. The Council holds public hearings, and a final budget is adopted on or before June 30.

Budget to actual comparisons are provided in this report for each governmental fund for which an annual budget has been adopted. For the General Fund, this comparison is presented on page 61 as part of the required supplementary information. For governmental funds other than the General Fund, this comparison is presented in the Combining Statements and Individual Fund Statements section of this report, starting on page 71. Budgets are also adopted and controlled for the proprietary funds. Budget comparisons for proprietary funds are not legally mandated but are presented after the Combining Statements and Individual Fund Statements section of this report.

Throughout the year, the Town Manager and the Administrative Services Director monitor economic changes that may affect the Town’s revenue stream, coordinates with departments in identifying changing needs and demands, and presents budget adjustments to the Town Council as part of the mid-year review.

Public inputs are filtered through the Town’s standing committees and to staff liaisons. These inputs are considered in the development of the budget and presented to the Town Council for consideration as part of the budget review and throughout the year as separate Council action items.

COLMA FINANCIAL OUTLOOK
As shown in the Basic Financial Statements, starting on page 20, the Town is financially healthy. As of June 30, 2021, the Town has an outstanding debt of $4.55 million, an unfunded pension liability of $10.99 million, unfunded OPEB liability of $11.20 million, and the total unrestricted fund balance is $11.02 million, available to meet current and future liabilities.

LOCAL ECONOMIC CONDITIONS AND ITS IMPACT ON THE TOWN
For FY 2020-21, the Town’s focused on providing essential services to the community during the COVID-19 pandemic while staying fiscally sound. This included partnering with Second Harvest Food Bank of San Mateo County, delivering food and other essentials to high-risk residents and partnering with the business community in developing creative solutions to allow businesses to continue to operate during the Shelter-in-place order and social distancing mandates.

In the first three months of the shelter-in-place order, the Town saw an immediate decline in sales and cardroom tax revenues of $2.16 million from March through June of 2020. As a result, the Town projected a revenue shortfall of $4.73 million revenue shortfall in FY 2020-21 compared to prior years and requiring the use of $2.20 million of unassigned General Fund reserves. The Town also reduced operating expenditures significantly, deferred capital purchases, and invested in essential capital improvement projects.

By March 2021, the Town received its first positive news since the start of the pandemic. The Town’s sales tax consultant shared that the Wayfair Decision generated $0.5 million more in sales tax distribution than anticipated. Additionally, transactions from car sales and construction materials increased in the last few quarters of COVID.

The pathway to reopening California also allowed many of the businesses to reopen with either reduced capacity or outdoor options. This flexibility restored the Town’s monthly cardroom tax partially, increasing from $20,000 per month to $150,000 per month. By June 2021, with the full reopening of California, cardroom tax revenues restored to pre-COVID level at $350,000 per month.

LONG-TERM FINANCIAL PLANNING AND RELEVANT FINANCIAL POLICIES The combination of better-than-expected sales and cardroom tax revenues and the reduced spending level in FY 2020-21 resulted in a $5.09 million operating surplus in General Fund, before transfers. While this is great news for the fiscal year ended June 30, 2021, the Town must remain vigilant on future threats.

As part of the 2020-2022 Strategic Plan approved by the Council on February 13, 2020, the Town started the planning phase of long-term strategies. These stra tegies include revenue diversification, economic development, and infrastructure programs. Even before the pandemic, the Town saw consumer behavior changing from fewer in-store purchases to greater online purchases. We expected sales tax revenues to slow as a result of this change. This consumer behavior changed more dramatically during the pandemic and it is important for staff to start looking at how to stabilize our revenues through diversification.

Pre-COVID-19, The Town also saw that investments in the Town’s public infrastructure can improve safety for residents and visitors and promote commercial growth. With the completion of the Serramonte Blvd/Collins Avenue Master Plan and the El Camino Real Bicycle and Pedestrian Plan, the Town will look to start the next phase of these projects. The FY 2021-22 budget includes consultants cost for economic development and a sewer enterprise fund assessment to prepare the Town for future economic changes.

vi
For more details on the 2020-2022 Strategic Plan and the FY 2020-21 Strategic Plan update can be found on the Town’s website under the Town Manager/Town Clerk’s Office section.

Lastly, the Town is committed to continue funding t he OPEB and pension 115 trusts to reduce future unfunded liabilities and to stabilize the rising pension cost.

RISK MANAGEMENT
The Town is a member of the Pooled Liability Assuranc e Network Joint Powers Authority (PLAN JPA), a joint powers insurance authority that consists of 28 member cities in the San Francisco Bay Area. The PLAN JPA was established to provide liability insu rance, claims, risk management, and legal defense services to participating members. The program provides the Town with liability coverage up to a maximum of $10 million, with the Town maintaining a self -insured retention of $50,000. The Town also maintains workers’ compensation coverage to a maximum of $5.0 million. The Town pays the self-insured retention as part of the General Fund operating budget and maintains general fund litigation reserves of $100,000. The Town has implemented, and is in com pliance with Governmental Accounting Standards Board Statement No. 10, Accounting and Financial Reporting for Risk Financing and Related Insurance Issues.

AWARD AND ACKNOWLEDGEMENT
We wish to extend our appreciation to all of the Town staff who contributed financial information to this report. Special thanks go to Cassandra Weatherly and Jeanne O’Brien for their continued support of the Finance Department and efforts in the preparation and production of this report.

We would also like to thank the Town Council for their continued interest and support in planning and conducting the financial operations of the Town in a responsible and progressive manner.

Respectfully submitted,

Brian Dossey Pak Lin
Town Manager Administrative Services Director

vii

TOWN OF COLMA, CALIFORNIA

TOWN OFFICIALS
FOR THE FISCAL YEAR JUNE 30, 2021

Elected Town Officials

Mayor Diana Colvin
Vice Mayor Helen Fisicaro
Council Member Raquel “Rae” Gonzalez
Council Member Joanne F. del Rosario
Council Member John Irish Goodwin

Appointed Town Officials

Town Manager Brian Dossey
Town Clerk Caitlin Corley
Chief of Police John Munsey
Administrative Services Director Pak Lin
Recreation Manager Angelika Abellana

Town Services Provided Under Contract

Legal Services Best, Best & Krieger
Planning, Engineering & Building Services CSG Consultants

viii

TOWN OF COLMA, CALIFORNIA

ORGANIZATIONAL CHART
FOR THE FISCAL YEAR JUNE 30, 2021

Residents of Colma
Town Council
Town Attorney Town Manager
Town Clerk
Function:
‐ Records Retention
and Management
‐ C.A.P.E
‐ Town Administration
Staffing:
‐ Town Clerk
‐ Administrative
Technicians II/III (2.0)
Administrative
Services Director
Function:
‐ Human Resources
‐ Finance
‐ Risk Management
‐ Technology
Staffing:
‐ Administrative
Services Director
‐ HR Analyst
‐ Accounting
Technicians (1.80)
Chief of Police
Function:
‐ Police Admin
‐ Patrol
‐ Communications/
Dispatch
‐ Community Services
Staffing:
‐ Chief of Police
‐ Executive Assistant
to Chief of Police
‐ Police Commander
‐ Detective Sergeant
& Sergeant (5.0)
‐ Detective &
Officers (12.22)
‐ Communication
Supervisor
‐ Communication/
Dispatch (3.20)
‐ Community Services
Officers (1.48)
Engineering, Building,
& Planning
Function:
‐ Permits and
development review
‐ Grant management
‐ Capital project
‐ Regulatory
requirements
pertaining to
development and
public infrastructure
Staffing:
‐ Contracted
Public Works
Maintenance
Supervisor
Function:
‐ Public Right‐Of‐Way
maintenance
‐ Storm water and
sewer system
maintenance and
compliance
Staffing:
‐ Maintenance
Supervisor
‐ Maintenance
Tech II/II (2.0)
Recreation Manager
Functions:
‐ Recreation programs
‐ Community Events
‐ Facility Rental
Staffing:
‐ Coordinator (2.0)
‐ Facility Attendant
(3.5)
‐ Recreation Leaders
(4.0)

Financial Section

Annual Comprehensive Financial Report
June 30, 2021

This Page Left Intentionally Blank

Annual Comprehensive Financial Report
June 30, 2021

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INDEPENDENT AUDITORS’ REPORT

Town Council
Town of Colma
Colma, California

Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Colma, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the Town of Colma’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United Stat es of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility
Our responsibility is to express opinions on these financial st atements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in th e 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.

Those standards require that we plan and perform the au dit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected de pend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to Town of Colma’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for th e purpose of expressing an opinion on the effectiveness of the Town of Colma’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accoun ting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is su fficient and appropriate to provide a basis for our audit opinions.

Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund informati on of the Town of Colma, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the ye ar then ended in accordance with accounting principles generally accepted in the United States of America.

1101 FIFTH AVENUE, SUITE 360 SAN RAFAEL, CA 94901 TEL (415) 457-1215 FAX (415) 457-6735 www.rjrcpa.com

R. J. RICCIARDI, INC.

CERTIFIED PUBLIC ACCOUNTANTS

Town Council
Town of Colma - Page 2

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Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, which follows this report letter, and the Budgetary Comparison Schedule for the General Fund, Local Government’s
Proportionate Share of Net Pension Liability, and Schedules of Contributions (page 54-60) be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Stan dards Board who considers it to be an essential part of the financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic fi nancial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise of the Town of Colma’s basic financial statements. The Supplementary Information as identified in the Table of Contents is presented for purposes of additional analysis and is not a required part of the basic financial statements.

The supplementary information, listed as Combining and Individual Fund Schedules, is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the au diting procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects in relation to the financial statements as a whole.

The Introductory Section and Statistical Section have not be en subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our repo rt dated February 1, 2022, on our consideration of Town of Colma’s
internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal contro l over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Town of Colma’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit.

R.J. Ricciardi, Inc.

Certified Public Accountants

San Rafael, California
February 1, 2022

TOWN OF COLMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR JUNE 30, 2021

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MANAGEMENT’S DISCUSSION AND ANALYSIS
This is Management’s Discussion and A nalysis of financial activities for the fiscal year ended June 30, 2021. This information should be read together with the transmittal letter, financial statements, and notes to the basic financial statements to better understand the Town of Colma’s (the Town) financial position.

The Town has prepared its Annual Comprehensive Financial Report in accordance with accounting principles generally accepted in the United States of America (GAAP) and all Governmental Accounting Standards Board (GASB) pronouncements that affect the Town.

FISCAL YEAR 2021 FINANCIAL HIGHLIGHTS
It is notable that the financial highlights and analyses below compare two fiscal years with dramatically different conditions. The fiscal year ended June 30, 2020 includes three months of complete closure due to the COVID-19 pandemic, while the fiscal year ended June 30, 2021 includes twelve months of partial closure as residents and businesses adapted to the COVID-19 restrictions.

Key financial highlights of the year are as follows:
 The Town’s assets and deferred outflows of res ources exceeded liabilities and deferred inflows of resources by $74.73 million. Of this amount, $56.07 million was invested in capital assets, $8.23 million was restricted net position and must be used for specific purposes, and the remaining $10.43 million was unrestricted net position.
 The Town’s governmental fund balances was $38.06 million, an increase of $3.19 million. Of this amount, $13.30 million was unassigned fund balance and available for spending at the Town’s discretion.
 The Town’s proprietary funds consist of activiti es in sewer and town properties operations. The Town’s proprietary fund stayed relatively the same at $2.57 million and has $0.24 million as unrestricted net position and available for use at the Town’s discretion.  Total governmental fund revenues increased by $4.61 million, to $21.25 million. Sales taxes revenues increased by $3.10 million to $13.62 million due to the passage of AB147, which pertains to online sales tax reporting and remittance requirements. Intergovernmental revenues rose by $1.38 million to $1.88 million because the Tow n received capital improvement grant reimbursements during the year. The grants were restricted for specific purposes.  Total governmental fund expenditures increased by $2.45 million, to $18.20 million. The increase is primarily related to construction activiti es for the Mission Road Bicycle and Pedestrian Improvement project.
 The Town’s General Fund balances increased by $4.67 million, to $35.05 million. Of the amount, $7.64 million is restricted to Pension and OPEB trust, $13.3 million is committed to various budget stabilization reserves, $0.95 million is assigned per Town Council initiatives, and $13.30 million is unassigned and available for spending at the Town’s discretion.

TOWN OF COLMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR JUNE 30, 2021

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 Total General Fund revenues increased by $3. 88 million, to $19.78 million, and is driven by favorable sales tax results due to AB147 and contribution to Pension and OPEB trusts. More details on AB147 are available in the General Fund analysis below.  Total General Fund expenditures had a $0.52 million increase or 4%, to $14.71 million. General government and public safety experienced the most increase during the year, while public works, recreation, and planning saw a decline in expenditures due to COVID-19 limitations. The main driver of the increase in general government and public safety is related to retiree medical reimbursements in accordance with the Town’s personnel policies and Memorandum of Understanding.

OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of five parts – a management’s discussion and analysis (this section), the basic financial statements, required supplementary informat ion, supplemental information consisting of the combining statements for nonmajor governmental funds and budget to actual comparison statements, and a statistical section. The basic financial statements include two kinds of statements that present different views of the Town.

THE BASIC FINANCIAL STATEMENTS
This section introduces the reader to the Town’s three basic financial statements: 1) governmental-wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements.

Governmental-Wide Statements
The governmental-wide financial statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the Town as a whole.

The Statement of Net Position and the Statement of Activities present information about the following:
 Governmental Activities – All of the Town’s ba sic services are considered to be governmental activities. These services are supported by general Town revenues such as taxes, and by specific program revenues such as user fees and charges.
 Business-type Activities – The Town’s enterprise activities of the Town Properties Fund and the Sewer Fund are reported in this area. Unlike governmental services, these services are supported by charges paid by users based on the amount of the service they use.

TOWN OF COLMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR JUNE 30, 2021

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Fund Financial Statements
These statements provide additional detail for the Town’s most significant Funds. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The funds used by the Town can be divided into two categories: Governmental funds and Proprietary funds.

Governmental Funds
Governmental funds are used to account for the same functions reported as governmental activities on the Government-wide financial statements. However, this reporting has a focus on the near-term inflows and outflows of spendable resources, as well as the ending balances. The Town has a total of eleven governmental funds.

The Fund Financial Statements provide detailed information about each of the Town’s most significant funds, called Major Funds. Major Funds present the major activities of the Town for the year and may change from year-to-year as a result of changes in the pattern of the Town’s activities. In accordance with government finance reporting standards, the General Fund is always reported as a Major Fund. Based on these standards the Town Capital Project Fund and the Street Capital Fund are also a Major Funds for the year ended June 30, 2021. Each Major Fund is presented individually, with all Non-major Funds summarized and presented only in a single column. Subordinate schedules present the detail of these Non-major Funds (Measure A Transportation Tax Fund; State Gas Tax Fund; Law Enforcement Grant Fund; Debt Service Fund and three others).

Proprietary funds
The Town maintains two types of Proprietary funds: enterprise and internal service. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town uses an enterprise fund to account for its Sewer and Town Properties Funds. An Internal Services Fund (ISF) is an accounting device used to accumulate and allocate costs internally among the Town’s various operating functions. In this ca se it is used to build up reserves for future replacement of vehicles and fleet equipment. These services solely benefit the government function. A separate Statement of Net Position and Statement of Cash Flow is included for the ISF.

The Town’s two Enterprise Funds are reported as Major Funds.

Fund Financial Statements include governmental funds as discussed below.

Governmental Fund Financial Statements are prepared on the modified accrual basis, which means they measure only current financial resources and uses. Capital assets and other long-lived assets, along with long-term liabilities, are not presented in the Governmental Fund Financial Statements.

Comparisons of Budget and Actual financial information are presented only for the General Fund, as required by GASB Statement No. 34.

TOWN OF COLMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR JUNE 30, 2021

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GOVERNMENTAL-WIDE FINANCIAL ANALYSIS
All financial statements are presented in conformance with GASB Statement No. 34 , Basic Financial Statements and Management’s Discussion and Analysis (MD&A) – for State and Local Governments. Prior year information is made available for a comparative analysis of government‐wide data.

STATEMENT OF NET POSITION (FIGURE 1)
As of June 30, 2021, the Town’s primary government net position is $74.72 million, an increase of $3.19 million from 2020. Of the $74.72 million, $72.15 million is in governmental activities and $2.57 million in business-type activities.

By far the largest portion of the Town’s net position reflects its investment in capital assets (e.g. land, infrastructure, buildings, machinery, and equipment) less any related debt used to acquire those assets that are still outstanding. The Town uses these capital assets ($56.06 million) to provide services to its citizens. Consequently, these assets are not available for future spending. Although the town’s investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay the debt must be provided from other sources since the capital assets cannot be used to liquidate these liabilities.

An additional portion of the Town’s net position ($8.23 million) represents resources that are subject to external restrictions on how the funds may be used, such as future pension and OPEB obligations. The remaining balance in unrestricted net position amounts to $10.43 million.

Figure 1
Statement of Net Position at June 30,
(Amounts in millions)
Governmental
Activities
Business-Type
Activities
Total Primary
Government
2021 2020 2021 2020 2021 2020
Current and other assets $ 40.17 $ 36.68 $ 0.24 $ 0.14 $ 40.41 $ 36.82 Capital assets, net of
accumulated depreciation

58.28 58.14 2.34 2.42 60.62 60.56
Total assets 98.45 94.82 2.58 2.56 101.03 97.38

Deferred outflows 5.83 6.30 − − 5.83 6.35

Current liabilities 1.50 1.18 0.01 0.01 1.51 1.18 Long-term liabilities 27.90 28.53 − − 27.90 28.53 Total liabilities 29.40 29.71 0.01 0.01 29.41 29.71

Deferred inflows 2.73 2.44 − − 2.73 2.49

Net position:

Invested in capital assets,
net of debt

53.73 53.47 2.33 2.42 56.06 55.89
Restricted 8.23 6.54 − − 8.23 6.54
Unrestricted 10.19 8.96 0.24 0.14 10.43 9.10
Total net position $ 72.15 $ 68.97 $ 2.57 $ 2.56 $ 74.72 $ 71.53

TOWN OF COLMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR JUNE 30, 2021

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STATEMENT OF ACTIVITIES (FIGURE 2)
The Statement of Activities presents program revenues and expenses, and general revenues in detail. All of these are elements in the Changes in Net Position summarized below. General revenues are not allocable to programs. General revenues are used to pay for the net cost of governmental programs.

For the fiscal year ended June 30, 2021, the Town’s overall net position increased by $3.19 million from the prior fiscal year. Key elements of these changes are as follows:

Figure 2
Change in Net Position at June 30,
(Amounts in millions)
Governmental
Activities
Business-Type
Activities
Total Primary
Government
2021 2020 2021 2020 2021 2020
Revenues:

Program revenues:

Charges for services $ 0.50 $ 0.47 $ 1.18 $ 1.04 $ 1.68 $ 1.51 Operating grants and
contributions

0.72 0.24 – – 0.72 0.24
Capital grants and contributions 1.16 0.26 – – 1.16 0.26 Total program revenues 2.38 0.97 1.18 1.04 3.56 2.00

General revenues:

Taxes 16.60 14.66 – – 16.60 14.66
Other revenues 1.20 0.84 0.03 0.09 1.23 0.93 Use of money and property 1.05 0.11 – – 1.05 0.11 Total general revenues 18.85 15.61 0.03 0.09 18.88 16.00

Total revenues 21.23 16.58 1.21 1.13 22.44 18.00

Expenses:

General government 4.45 3.80 0.16 0.15 4.61 3.95 Public safety 8.30 7.17 1.04 0.95 9.34 8.12 Public works 4.18 3.04 – – 4.18 3.04
Planning 0.07 0.42 – – 0.07 0.42
Recreation 0.88 1.02 – – 0.88 1.02 Interest 0.17 0.18 – – 0.17 0.18
Total expenses 18.05 15.63 1.20 1.11 19.25 17.00

Other financing items:

Net transfers in/(out) – – – – – – Total other financing items – – – – – –

Change in net position 3.18 0.95 0.01 0.03 3.19 0.98 Net Position, beginning of period 68.97 68.02 2.56 2.53 71.53 70.55 Net Position, end of period $ 72.15 $ 68.97 $ 2.57 $ 2.56 $ 74.72 $ 71.53

TOWN OF COLMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR JUNE 30, 2021

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GOVERNMENTAL ACTIVITIES ANALYSIS
Statement of Net Position – Governmental Activities
The Town’s total net position as of June 30, 2021 for governmental activities are comprised the following:
 The Town’s governmental net position at June 30, 2021 amounted to $72.15 million, an increase of $3.19 million from 2020.
 Cash and investments were $29.31 million. The Tow n held all investments in the county (SMCIF) and state (LAIF) pools, and in fully insured certificate of deposits, as detailed in Note 4A to the financial statements. Section 115 Trust assets were $7.64 million.  Other assets of $3.45 million comprise of $3.33 million in receivables, explained in Note 4B to the financial statements, and $116,000 in prepaid items.
 Capital assets of $58.28 million, net of depreciation charges, included all the Town’s capital assets used in governmental activities as discussed in Note 4C.  Current liabilities, including accounts payable, claims and other amounts due currently, totaling $1.65 million.
 Long-term liabilities payable of $27.75 million, as explained in Note 4E to the financial statements. The increase in long-term liabilities is due to the increase in the net pension liability and net OPEB liability.
 Net position invested in capital assets, net of related debt, of $53.73 million, representing the Town’s investment in capital assets used, net of amounts borrowed to finance those investments.  Restricted net position represents the Town’s restricted section 115 trust assets for unfunded pension and retiree health liabilities.
 Unrestricted net position is the part of net posit ion that can be used to finance day-to-day operations without constraints established by debt covenants or other legal requirements or restrictions. The Town had $10.19 million of unrestricted net position.

TOWN OF COLMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR JUNE 30, 2021

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Statement of Activities – Governmental Activities

For fiscal year 2020-21, the Town’s revenues for governmental activities totaled $21.23 million and expenditures totaled $18.04 million. The Town also subsidized the sewer operations with a transfer of $30,914.

As Figure 3 shows, $16.60 million, or 78%, of the Town’s fiscal year 2021 governmental activities revenue came from taxes, while $1.88 million, or 9%, came from grants and contributions, $0.50 million, or 2%, came from charges for services, $1.02 million, or 5%, came from other revenues and transfers, and $1.23 million or 6% came from use of money/property.

Charges for Services
$0.50 M
2%
Operating Grants and
Contributions
$0.72 M
3%
Capital Grants and
Contributions
$1.16 M
6%
General Taxes
$16.60 M
78%
Use of Money and
Property
$1.23 M
6% Other Revenues
$1.02 M
5%
Figure 3: Governmental Activities Revenues
For Fiscal Year Ended June 30, 2021
$1.07 M
$17.36 M
$0.51 M
$18.94 M
$1.00 M
$14.66 M
$0.96 M
$16.62 M
$2.38 M
$16.60 M
$2.25 M
$21.23 M
$-
$5.00 M
$10.00 M
$15.00 M
$20.00 M
$25.00 M
Program revenues General taxes Other revenues Total
Figure 4: 3-Year Governmental Activities Revenues Trend 2018/19 2019/20 2020/21

TOWN OF COLMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR JUNE 30, 2021

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As shown in Figure 4, for the fiscal year ended J une 30, 2021, Town’s program revenues totaled $2.38 million, general taxes totaled $16.60 million, and other revenues totaled $2.25 million.

Town’s program revenues is $1.38 million more than the prior year and is driven by capital grant reimbursements, including $36,000 for the El Camino Real Bicycle and Pedestrian Plan and $0.97 million for the Mission Road Bicycle and Pedestrian Improvement project.

General taxes increased by $1.94 million, to $16.60 million. Figure 4 above shows that the Town’s general tax revenues dipped in fiscal year 2019-20 due to the 3 months of immediate business closure to stop the spread of COVID-19. While Town’s general tax revenues re covered in fiscal year 2020-21, it is still less that of fiscal year 2018-19, the pre-pandemic benchmark.

Overall, total governmental activities revenues rose by $4.61 million to $21.23 million.

Figure 5 includes only current year expenses; it does not include capital outlays, which were added to the Town’s capital assets. As Figure 5 shows, general government is $4.60 million, or 25%, of total governmental activities, public works and planning is $4.26 million, or 24%, public safety is $8.31 million, or 46%, and recreation is $0.88 million, or 5%.

General government and
debts
$4.60 M
25%
Public safety
$8.31 M
46%
Public works and planning
$4.26 M
24%
Recreation
$0.88 M
5%
Figure 5: Governmental Activities Expenditures
For Fiscal Year Ended June 30, 2021

TOWN OF COLMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR JUNE 30, 2021

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BUSINESS-TYPE ACTIVITIES ANALYSIS
Statement of Net Position – Business-Type Activities
As of June 30, 2021, the net position for business-type activities was $2.57 million and were comprised of the following:
 Cash and investments were $228,326. More information is provided in Note 4A to the financial statements.
 Other assets of $15,839 are explained in Note 4B to the financial statements.  Capital assets of $2,335,896 included all the Town’s capital assets used in business-type activities as discussed in Note 4C.
 Current liabilities totaled $6,639.
 Net position invested in capital assets was $2,335,896.  Unrestricted net position of $237,526 are reserved for future enterprise operating and maintenance cost.

Statement of Activities – Business-Type Activities
 Total program revenues of $1.18 million comprised of $0.99 million in sewer fees, which is passed through to the City of Daly City and South San Francisco for sewer treatment cost, and $192,722 in rental revenues from Creekside Villas and 1365 Mission Road properties.  Total expenses of $1.20 million comprised of $1.04 million in sewer operation and $159,323 in town properties management. Of the $1.04 million in sewer expenses, $1.01 million is related to sewer treatment and the rest in infrastructure maintenance.

TOWN OF COLMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR JUNE 30, 2021

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FINANCIAL ANALYSIS OF TOWN’S FUNDS

GOVERNMENTAL FUNDS
The Town uses fund accounting, which focuses on current financial resources affecting near-term liquidity.

It is also a management tool for segregating certain resources for specific activities or objectives in accordance with special regulations, restrictions, or limitations.

The focus of the governmental funds is to provide information on current year revenues, expenditures, and balances of spendable resources. Such information is useful in assessing the Town’s near-term financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. For fiscal year 2020-21, the Town’s major funds included the general fund, capital improvement fund, and street capital improvement fund. Special revenues, and debt funds are reported as Other Governmental Funds.

General Fund:

At June 30, 2021, the Town’s General Fund reported combined ending balances of $35.04 million, an increase of $4.67 million. General Fund revenues incr eased by $3.88 million, to $19.78 million, and expenditures increased by $0.52 million, to $14.70 million.

The main drivers for the increase in General Fund revenues is attributable to sales tax revenues and other revenues. The total sales tax received in fiscal year 2020-21 is unprecedented, at $13.62 million.

Pre-COVID-19, the average sales tax revenues was in the range of $11.0 million to $12.0 million. The dramatic increase in sales tax revenues is driven by two factors; AB147 use tax and increased activities in auto and construction transactions. On April 25, 2019, Governor Newsom signed into law AB147 where California cities will share additional sales and use tax revenues collected from out-of-state retailers as a result of court ruling in the matter of South Dakota v. Wayfair, Inc. This generated close to $2.0 million in use tax for the Town in fiscal year 2020-21. Additionally, as businesses and citizens adapt to the COVID-19 restrictions, the Town saw an increase in construction and auto activities resulting in an additional $1.0 million in sales tax.

The General Fund other revenues include pension and OPEB trust contribution in fiscal year 2020-21 in the amount of $0.99 million.

TOWN OF COLMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR JUNE 30, 2021

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Overall, General Fund expenditures of $14.70 million increased by $0.52 million from the prior year. Of all the General Fund operations, general government and public safety saw an increase in the operating expenditures by $152,000 and $980,000, respectively. The main driver of the increase in general government and public safety is related to out-of-pocket retiree medical expenditures for the year. The Town’s retiree medical changed from premium coverage based on service years to a defined contribution into a Health Savings account. This change in benefit became effective for new hires after December 31, 2016. Other factors include turnover cost, insuranc e premium increases, and contributions to pandemic relief.

Capital Improvement Fund:

As of June 30, 2021, the Fund had a balance of $1.57 million. Due to the COVID-19 pandemic, the Town deferred all projects that lack legal obligations. Projects with legal obligations include the police radio update, general plan update, and climate action plan update. The Town also continued its investment in IT infrastructure purchases and replacements. A total of $426,794 in expenditures were accounted for in the fund. The fund received transfers from the General Fund totaling $250,000.

Street Capital Improvement Fund:

As of June 30, 2021, the Fund had a balance of $0.85 million. As mentioned in the Capital Improvement Fund section above, the Town focused its attention and resources on El Camino Real Bicycle and Pedestrian Plan and Mission Road Bicycle and Pedestrian Improvement project. All other street and roadway projects were deferred. Total project expenditure for the year was $2.56 million and total transfer of $0.93 million was received from General Fund, Gas Tax, RMRA, and Measure A fundings.

$4.73 M $3.78 M $3.93 M
$8.23 M
$6.98 M $7.96 M
$2.17 M
$2.38 M
$2.15 M
$1.25 M
$1.03 M $0.65 M
$16.38 M
$14.17 M $14.69 M
$-
$2.00 M
$4.00 M
$6.00 M
$8.00 M
$10.00 M
$12.00 M
$14.00 M
$16.00 M
$18.00 M
2018/19 2019/20 2020/21
Figure 6: 3-Year General Fund Expenditure Trend
General government Public safety Public works and planning Recreation

TOWN OF COLMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR JUNE 30, 2021

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Non-Major Governmental Funds:

These funds are not presented separately in the basic financial statements.

The fund balance in the Non-Major Governmental Funds totaled $.59 million, decreasing by $.29 million, or 33%, over the prior fiscal year. Revenues and transfers totaling $.63 million decreased by $.29 million, or 3%, while total expenditures and transfers out of .93 million decreased by $.06 million, or 6%.

PROPRIETARY FUNDS
Town Properties Fund: As of June 30, 2021, the Fund had a balance of $2.37 million.

Sewer Fund: As of June 30, 2021, the Fund had a balance of $204,054.

GENERAL FUND BUDGETARY HIGHLIGHTS
The Town’s budget process began after the mid-year financial update presentation to the Town Council.

The Finance Department facilitates the development and consolidate inputs from all Town departments.

The consolidated budget inputs are reviewed by the Town Manager and presented to the Town Council in two budget study session. A balanced budget is adopted by June 30 of each year. During the year, budget adjustments are brought before the Town Council for consideration and to amend the budget. Additionally, the Department monitors the budget during the year and the Finance Department prepares a quarterly financial update to the Town Council. As part of this mid-year financial update, budget amendments are proposed to address any significant economic concerns and to incorporate prior Town Council actions that had changed appropriation or for reallocation of budget items.

A comparison of General Fund Budget to Actual can be found in the Required Supplemental Information section after Notes to the Financial Statements. Below is a summary of the major changes in budget and major variance between budget and actual.

ORIGINAL BUDGET COMPARED TO FINAL BUDGET
To shift the Town’s resources to address the pandemic, the Town Council adopted the fiscal year 2019- 20 operating budget as the fiscal year 2020-21 operating budget. They also adopted the fiscal year 2020- 21 program per the 2019-2024 Capital Improvement Plan. At the time of the adoption, the Town Council was aware that the budget will be amended in October to allow the budget team to assess the impact of the COVID-19 pandemic.

On October 28, 2020, the Town Council reviewed the financial and economic condition and adopted an entirely new budget for fiscal year 2020-21. The budget final budget shows a reduction of $4.04 million in town-wide revenues and a $2.37 million reduction in town-wide operating expenditure. The reduction in revenue from $19.47 million to $15.43 million assumed that sales tax and cardroom tax revenues will be significantly reduced due to the pandemic.

TOWN OF COLMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR JUNE 30, 2021

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With the expectation that sales and cardroom tax revenues will reduce significantly, the Town reduced its operations and services significantly to minimize drawdown the Town’s unassigned general fund reserve.

The expenditure reduction strategy included reduced contribution to 115 trust, deferred vehicle purchases and facility maintenance, funded essential capital programs, and implemented a hiring freeze of two vacant positions.

Final Budget Compared to Actual
As businesses and residents adapt to COVID-19 restrictions, the Town’s General Fund revenues exceeded the amended budget by $6.64 million. Sales and cardroom taxes continues to be the primary source of revenues for the Town. At $15.83 million, sales and cardroom tax revenues represents 80% of total general fund revenues. For the year, they outperformed expectation by $4.29 million. The main drivers in sales tax revenue of $13.6 million includes AB 147 which requires all online vendors to remit sales tax to the Board of Equalization and the proceeds to be distributed as used tax and the increased demand on vehicles and construction materials. Cardroom tax revenue exceeded expectation as the local cardroom worked with the planning development to find creative solutions to offer cardroom services outdoor.

While consumer behavior were strong during the year, the Town’s programs and operations continued to be restricted during the pandemic. Overall, total expenditure were $39,000 less than final budget. General government, public works, recreation, and planning had less expenditures during the year than the budget.

Public safety exceeded budget by $398,000 due to unbudgeted retirement and the resulting leave payout of $116,000 and the rise of pension and OPEB costs.

CAPITAL ASSETS
GASB Statement No. 34 requires the Town to record all its capital assets including infrastructure, which was not recorded in prior years. Infrastructure includes roads, bridges, signals and similar assets used by the entire population.

In fiscal year 2021, the Town reported the cost of all its infrastructure assets and computed the amount of accumulated depreciation for these assets based on their original acquisition dates. At the end of fiscal year 2021 the cost of infrastructure and other capi tal assets recorded on the Town’s financial statements is shown in Figure 7 below:

TOWN OF COLMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR JUNE 30, 2021

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Figure 7
Capital Assets at Year-end

Balance at
June 30, 2021
Governmental Activities
Land $ 6,589,376
Construction in progress 3,487,207
Infrastructure-street systems 26,364,634
Buildings 34,554,590
Improvements other than buildings 3,784,093
Machinery and equipment 3,354,501
Less: accumulated depreciation (19,853,516)
Governmental activity capital assets, net $ 58,280,885

Detail on capital assets and current year additions can be found in Note 4C.

The Town depreciates all its capital assets over their estimated useful lives, as required by GASB Statement No. 34. The purpose of depreciation is to spread the cost of a capital asset over the years of its useful life so that an allocable portion of the cost of the asset is borne by all users. Additional information on depreciable lives may be found in Note 4C to the financial statements.

DEBT ADMINISTRATION
The Town issued certificates of participation (COP) in fiscal year 2016 in the amount of $5,300,000.

Additional information about the Town’s long-term obligations can be found in Note 4E to the basic financial statements.

As of June 30, 2021, the Town’s debt issues comprised:

Figure 8
Outstanding Debt

June 30, 2021
Governmental Activity Debt:

Certificates of Participation $ 4,550,000
Net Other Post-Employment Benefit Obligation 11,202,420 Net Pension Liability 10,987,517
Compensated absences 1,286,192
Total $ 28,026,129

Business-type Activities
Land $ 1,006,095
Infrastructure 380,910
Buildings 2,615,156
Less: accumulated depreciation (1,666,265)
Business-type activity capital assets, net $ 2,335,896

TOWN OF COLMA, CALIFORNIA
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR JUNE 30, 2021

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ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The COVID-19 pandemic continues to have a strong infl uence on the Town’s operation in fiscal year 2021-22. Due to the shutdown at many factories and COVID restrictions, the nation is beginning to see supply shortages from raw material to trained labor to deliver the finished products.

Additionally, General Fund revenues are expected to reach 90% of the pre-pandemic level.

CONTACTING THE TOWN’S FINANCIAL MANAGEMENT
This Annual Comprehensive Financial Report is intended to provide citizens, taxpayers, and creditors with a general overview of Town of Colma’s finances. Questions about this report should be directed to Town of Colma, at 1198 El Camino Real, Colma, CA 94014.

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This Page Left Intentionally Blank

Annual Comprehensive Financial Report
June 30, 2021

- 19 -

Basic Financial Statements

Annual Comprehensive Financial Report
June 30, 2021

- 20 -

BASIC FINANCIAL STATEMENTS

GOVERNMENTAL-WIDE FINANCIAL STATEMENTS

STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES
The Statement of Net Position and the Statement of Activities summarize the Town’s financial activities and financial position. They are prepared on the same basis as is used by most businesses, which means they include all the Town’s assets and all its liabilities, as well as all its revenues and expenses. This is known as the full accrual basis—the effect of all the Town’s transactions is taken into account, regardless of whether or when cash changes hands, but all material internal transactions between Town’s funds have been eliminated.

The Town’s Governmental Activities include the activities of its General Fund, along with all its Special Revenue, Capital Projects and Debt Service Funds. Since the Town’s Internal Service Funds service these Funds, their activities are consolidated with Gove rnmental Activities, after eliminating inter-fund transactions and balances. The Town’s Business-type Activities include all its Enterprise Fund activities.

The Statement of Activities reports increases and decreases in the Town’s net position. It is also prepared on the full accrual basis, which means it includes all the Town’s revenues and all its expenses, regardless of when cash changes hands. This differs from the “m odified accrual” basis used in the Fund financial statements, which reflect only current assets, current liabilities, available revenues and measurable expenditures.

The format of the Statement of Activities presents the Town’s expenses first, listed by program, and follows these with the expenses of its business-type activities. Program revenues—that is, revenues which are generated directly by these programs—are then deducted from program expenses to arrive at the net expense of each governmental and business-type program. The Town’s general revenues are then listed in the Governmental Activities or Business-type Activities column, as appropriate, and the Change in Net Position is computed and reconciled with the Statement of Net Position.

These financial statements along with the fund financial statements and footnotes are called Basic Financial Statements.

Governmental Business Type
ASSETS Activities Activities Total
Current assets:

Cash and investments 29,076,858$ 228,326$ 29,305,184$ Restricted cash and investments 7,643,752 - 7,643,752 Receivables:

Taxes 2,317,697 - 2,317,697
Accounts 980,302 15,839 996,141
Accrued interest 36,928 - 36,928 Prepaid items 116,242 - 116,242
Total current assets 40,171,779 244,165 40,415,944 Noncurrent assets:

Capital assets:

Non-depreciable 10,076,583 1,006,095 11,082,678
Depreciable, net of accumulated depreciation 48,204,302 1,329,801 49,534,103 Total noncurrent assets 58,280,885 2,335,896 60,616,781 Total assets 98,452,664 2,580,061 101,032,725

DEFERRED OUTFLOWS
Deferred outflows related to OPEB 1,511,061 - 1,511,061 Deferred outflows related to pensions 4,323,386 - 4,323,386 Total deferred outflows 5,834,447 - 5,834,447

LIABILITIES
Current liabilities:

Accounts payable and accrued expenses 936,619 6,639 943,258 Deposits 433,987 - 433,987
Compensated absences due in one year 154,534 - 154,534 Certificates of participation due in one year 125,000 - 125,000 Total current liabilities 1,650,140 6,639 1,656,779 Noncurrent liabilities due in more than one year:

Compensated absences 1,131,658 - 1,131,658 Certificates of participation 4,425,000 - 4,425,000 Net pension liability 10,987,517 - 10,987,517 Net other post-employment benefit obligation 11,202,420 - 11,202,420 Total noncurrent liabilities 27,746,595 - 27,746,595 Total liabilities 29,396,735 6,639 29,403,374

DEFERRED INFLOWS
Deferred inflows related to OPEB 2,166,098 - 2,166,098 Deferred inflows related to pensions 567,792 - 567,792 Total deferred inflows 2,733,890 - 2,733,890

NET POSITION
Invested in capital assets, net of related debt 53,730,885 2,335,896 56,066,781 Restricted 8,232,580 - 8,232,580
Unrestricted 10,193,021 237,526 10,430,547
Total net position 72,156,486$ 2,573,422$ 74,729,908$ Town of Colma

STATEMENT OF NET POSITION
June 30, 2021
The accompanying notes are an integral part of these financial statements. - 21 -
Operating Capital
Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Town Government
Governmental activities:

General government 4,424,559$ -$ -$ -$ (4,424,559)$ (4,424,559)$ Public safety 8,305,409 114,569 158,251 - (8,032,589) (8,032,589) Public works 4,183,431 259,022 21,859 1,158,693 (2,743,857) (2,743,857) Recreation 879,315 22,797 - - (856,518) (856,518) Planning 74,881 103,262 539,660 - 568,041 568,041 Interest on long-term debt 174,369 - - - (174,369) (174,369) Total governmental activities 18,041,964 499,650 719,770 1,158,693 (15,663,851) (15,663,851)$ Business-type activities:

City properties 159,323 192,722 - - 33,399$ 33,399 Sewer 1,044,830 987,697 - - (57,133) (57,133) Total business-type activities 1,204,153 1,180,419 - - (23,734) (23,734) Total 19,246,117$ 1,680,069$ 719,770$ 1,158,693$ (23,734) (15,687,585) General revenues:

Taxes:

Property taxes 622,787 - 622,787 Sales taxes 13,620,617 - 13,620,617
Cardroom taxes 2,213,814 - 2,213,814 Other taxes 141,021 - 141,021
Use of money and property 1,231,305 1,413 1,232,718 Transfers (30,914) 30,914 -
Other revenues 1,049,962 - 1,049,962 Total general revenues and special items 18,848,592 32,327 18,880,919 Change in net position 3,184,741 8,593 3,193,334 Net position, beginning of period 68,971,745 2,564,829 71,536,574 Net position, ending of period 72,156,486$ 2,573,422$ 74,729,908$ Program Revenues Changes in Net Position
Net (Expense) Revenue and
Town of Colma

STATEMENT OF ACTIVITIES
For the Fiscal Year Ended June 30, 2021
The accompanying notes are an integral part of these financial statements. - 22 -

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FUND FINANCIAL STATEMENTS
Fund Financial Statements are presented by individual major funds, while non-major funds are combined in a single column. Major funds are defined generally as having significant activities or balances in the current year.

MAJOR GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the Town. Individual non-major funds may be found in the Supplemental section.

The General Fund accounts for all financial resources necessary to carry out basic governmental activities of the Town that are not accounted for in another fund. The General Fund supports essential services such as police protection, street & storm drain maintenance, parks, and recreation.

The Capital Improvement Project Fund accounts for funds expended for general capital improvements, including equipment & technology replacement, long-range plans, and facility improvements.

The Street Improvement Capital Project Fund accounts for funds expended for transportation infrastructure such as street rehabilitation, streetlights, traffic signals and street medians.

Street
Capital Improvement Other Total
General Improvement Capital Governmental Governmental
Fund Project Fund Project Fund Funds Funds
ASSETS
Cash and investments 25,213,039$ 1,514,378$ 1,036,295$ 572,259$ 28,335,971$ Restricted cash and investments 7,643,752 - - - 7,643,752 Taxes receivable 2,317,697 - - - 2,317,697 Accounts receivable 769,795 93,567 99,449 17,491 980,302 Accrued interest receivable 36,928 - - - 36,928 Due from other funds 806 - - - 806 Prepaid items 116,242 - - - 116,242 Total assets 36,098,259$ 1,607,945$ 1,135,744$ 589,750$ 39,431,698$

LIABILITIES
Accounts payable 284,094$ 35,692$ 281,725$ 922$ 602,433$ Accrued expenditures 334,186 - - - 334,186 Due to other funds - - - 806 806 Deposits 433,987 - - - 433,987 Total liabilities 1,052,267 35,692 281,725 1,728 1,371,412

FUND BALANCES
Nonspendable 116,242 - - - 116,242 Restricted 7,643,752 - - 588,828 8,232,580 Committed 13,031,341 - - - 13,031,341 Assigned 950,000 1,572,253 854,019 - 3,376,272 Unassigned 13,304,657 - - (806) 13,303,851 Total fund balances 35,045,992 1,572,253 854,019 588,022 38,060,286 Total liabilities and fund balances 36,098,259$ 1,607,945$ 1,135,744$ 589,750$ 39,431,698$ Total governmental fund balances 38,060,286$
58,280,885
740,887
(24,925,572)
Net position of governmental activities 72,156,486$
Some liabilities, including bonds, notes, leases and long-term portion of compensated absences are not due and payable in the current period and are therefore not reported in the funds.

Town of Colma

GOVERNMENTAL FUNDS

BALANCE SHEET
June 30, 2021
Capital assets used in governmental activities are not reported in the funds.

Amounts reported for governmental activities in the statement of net position are different because:

The assets and liabilities of the internal service fund are included in the governmental activities in the statement of net position.

The accompanying notes are an integral part of these financial statements. - 24 -
Street
Capital Improvement Other Total
General Improvement Capital Governmental Governmental
Fund Project Fund Project Fund Funds Funds

REVENUES
Property taxes 622,787$ -$ -$ -$ 622,787$ Sales taxes 13,620,617 - - - 13,620,617 Cardroom taxes 2,213,814 - - - 2,213,814 Other taxes 141,021 - - - 141,021 Licenses and permits 348,147 - - - 348,147 Fines and forfeits 108,484 - - - 108,484 Intergovernmental 448,184 93,000 1,008,258 329,021 1,878,463 Use of money and property 1,196,896 15,811 5,000 7,427 1,225,134 Other revenues 1,037,686 2,276 10,000 - 1,049,962 Charges for services 43,019 - - - 43,019 Total revenues 19,780,655 111,087 1,023,258 336,448 21,251,448

EXPENDITURES
Current:

General government 3,931,655 - - 3,350 3,935,005 Public safety 7,976,511 - - 204,284 8,180,795 Public works 1,852,211 426,794 2,555,377 17,133 4,851,515 Recreation 652,133 - - - 652,133 Planning 295,710 - - - 295,710 Debt service:

Principal - - - 120,000 120,000 Interest - - - 174,369 174,369 Total expenditures 14,708,220 426,794 2,555,377 519,136 18,209,527 Excess (deficiency) of
revenues over expenditures 5,072,435 (315,707) (1,532,119) (182,688) 3,041,921

OTHER FINANCING SOURCES (USES)
Transfers in - 250,000 927,000 295,612 1,472,612 Transfers out (576,526) (520,000) - (407,000) (1,503,526) Total other financing sources (uses) (576,526) (270,000) 927,000 (111,388) (30,914) Net change in fund balances 4,495,909 (585,707) (605,119) (294,076) 3,011,007 Fund balances, beginning of period 30,374,400 2,157,960 1,459,138 882,098 34,873,596 Prior period adjustment 175,683 - - - 175,683 Fund balances, beginning of period restated 30,550,083 2,157,960 1,459,138 882,098 35,049,279 Fund balances, end of period 35,045,992$ 1,572,253$ 854,019$ 588,022$ 38,060,286$ Town of Colma

STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES
For the Fiscal Year Ended June 30, 2021

GOVERNMENTAL FUNDS
The accompanying notes are an integral part of these financial statements. - 25 -
Net Change in Fund Balances - Total Governmental Funds 3,011,007$ Amounts reported for governmental activities in the statement of activities are different because:

CAPITAL ASSET TRANSACTIONS
145,054

LONG-TERM DEBT PROCEEDS AND PAYMENTS
Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. 120,000

ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal service funds are closed by charging additional amounts or reducing charges to participating governmental activities to completely cover the internal service funds costs for each year (13,801)

ACCRUAL OF NON-CURRENT ITEMS
Compensated Absences 73,085
Pension expense (4,208)
OPEB expense (146,396)
Net difference 173,734
Change in Net Position of Governmental Activities 3,184,741$ The amounts below included in the statement of activities do not require the use of or provide current financial resources and are therefore not reported as expenditures or revenues in the governmental funds.

Town of Colma

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES OF

GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
For the Fiscal Year Ended June 30, 2021
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which depreciation ($1,621,638) is under capital outlays and transfers $1,766,692 in the current period.

The accompanying notes are an integral part of these financial statements. - 26 -

- 27 -

PROPRIETARY FUND FINANCIAL STATEMENTS
The Sewer Fund is used to account for the provision of sewer services to the residents of Colma and some residents of areas adjacent to the Town. All activities necessary to provide such services are accounted for in this fund, including administration, operations, maintenance, and billing/collections.

The Town Property Fund is used to account for activities of the Town’s rental properties.

Governmental
Activities
Town Internal Service
Sewer Properties Totals Fund
ASSETS
Current assets:

Cash and investments 7,980$ 220,346$ 228,326$ 740,887$ Accounts receivable 2,458 13,381 15,839 - Total current assets 10,438 233,727 244,165 740,887 Noncurrent assets:

Capital assets:

Buildings - 2,615,156 2,615,156 - Land - 1,006,095 1,006,095 - Infrastructure 380,910 - 380,910 - Construction in progress - - - - Accumulated depreciation (183,059) (1,483,206) (1,666,265) - Total capital assets 197,851 2,138,045 2,335,896 - Total assets 208,289 2,371,772 2,580,061 740,887

LIABILITIES
Current liabilities:

Accounts payable 4,235 2,404 6,639 - Total current liabilities 4,235 2,404 6,639 -

NET POSITION
Investment in capital assets 197,851 2,138,045 2,335,896 - Unrestricted 6,203 231,323 237,526 740,887 Total net position 204,054$ 2,369,368$ 2,573,422$ 740,887$ Town of Colma
June 30, 2021

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
The accompanying notes are an integral part of these financial statements. - 28 -
Governmental
Activities
Town Internal Service
Sewer Properties Totals Fund
Operating revenues:

Charges for services 987,697$ 192,722$ 1,180,419$ -$ Total operating revenues 987,697 192,722 1,180,419 - Operating expenses:

Materials, supplies, rent and services 1,022,846 95,658 1,118,504 19,974 Depreciation 21,984 63,665 85,649 - Total operating expenses 1,044,830 159,323 1,204,153 19,974 Operating income (loss) (57,133) 33,399 (23,734) (19,974) Non-operating revenues (expenses):

Interest and other income - 1,413 1,413 6,173 Sale of property - - - - Total non-operating revenues (expenses) - 1,413 1,413 6,173 Contributions and transfers
Transfers in 30,914 - 30,914 - Net contributions and transfers 30,914 - 30,914 - Change in net position (26,219) 34,812 8,593 (13,801) Net position, beginning of period 230,273 2,334,556 2,564,829 754,688 Net position, end of period 204,054$ 2,369,368$ 2,573,422$ 740,887$ For the Fiscal Year Ended June 30, 2021

PROPRIETARY FUNDS

EXPENSES, AND CHANGES IN FUND NET POSITION
Town of Colma

STATEMENT OF REVENUES,
The accompanying notes are an integral part of these financial statements. - 29 -
Governmental
Activities
Town Internal Service
Sewer Properties Totals Fund
Cash flows from operating activities:

Receipts from other funds for services 994,397$ 190,707$ 1,185,104$ -$ Payments to suppliers (1,018,997) (94,795) (1,113,792) (19,974) Net cash provided (used) by operating activities (24,600) 95,912 71,312 (19,974) Cash flows from investing activities:

Interest and other income - 1,413 1,413 6,173 Net cash provided by investing activities - 1,413 1,413 6,173 Cash flows from capital and related financing activities Transfers 30,914 - 30,914 - Net cash provided by capital and related financing
activities 30,914 - 30,914 - Net increase (decrease) in cash and cash equivalents 6,314 97,326 103,640 (13,801) Cash and cash equivalents - beginning of period 1,666 123,020 124,686 754,688 Cash and cash equivalents - end of period 7,980$ 220,346$ 228,326$ 740,887$ Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:

Operating income (loss) (57,133)$ 33,399$ (23,734)$ (19,974)$ Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:

Depreciation 21,984 63,665 85,649 - Changes in certain assets and liabilities:

Accounts receivable 6,700 (2,015) 4,685 - Accounts payable 3,849 863 4,712 - Net cash provided (used) by operating activities (24,600)$ 95,912$ 71,312$ (19,974)$ Town of Colma
For the Fiscal Year Ended June 30, 2021

STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS
The accompanying notes are an integral part of these financial statements. - 30 -
Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 31 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

The Town of Colma (the Town) is a municipal corporation governed by an elected five-member Town Council. The accompanying basic financial statem ents present the govern ment and its component units, entities for which the government is considered to be financially accountable. The Town has no component units.

The Town provides customary municipal services including general governmental activities, police protection, streets, maintenance, parks and recreation activities, planning and zoning, and building and public works. The Town co ntracts for sanitary sewer services wi th local providers in Daly City and South San Francisco, for street lighting services with San Mateo County, and for water service from CalWater.

B. Entity-wide and Fund Financial Statements

The entity-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the Town with the effect of interfund activity removed from these statements. Governmental activities , which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, serv ices, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

Separate financial statements are provided for th e Town’s governmental funds. Major individual governmental funds are reported as separate columns in the fund financial statements.

C. Measurement Focus, Basis of Accounting, & Financial Statement Presentation

The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of the timing of related cash flows.

Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all e ligibility requirements imposed by the provider have been met.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when “measurable” and “available”. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period.

For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal ye ar. Expenditures generally are record ed when a liability is incurred, as under accrual accounting. However, debt service ex penditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due.

Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 32 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

C. Measurement Focus, Basis of Accounting, & Financial Statement Presentation (concluded)

Property taxes, sales taxes, card room taxes, license s, and interest associated with the current fiscal period are all considered to be su sceptible to accrual and so have be en recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.

The government reports the following major governmental funds:

The General Fund is the government’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

Capital Improvement Project Fund accounts for resources transferred from the General Fund to complete capital improvement projects.

Street Improvement Capital Project Fund accounts for resources to complete street and transportation improvement projects.

The Town reports the following major proprietary funds:

Town Properties Fund accounts for the activities of the Town’s housing program.

Sewer Fund accounts for the activities of the Town’s sewer service.

As a general rule, the effect of interfund activi ty has been eliminated from the government-wide financial statements. This includes elimination of interfund payables and receivables and of interfund transfers.

The Town may fund programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be available to finance program expenditures. The Town’s policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.

Additionally, the Town reports the following fund type:

The Internal Service Fund is used to account for the replacement of the Town’s fleet and associated equipment provided to other Town departments on a cost reimbursement basis.

Amounts reported as program revenues include 1) charges to customers and applicants, for goods, services or privileges provided, 2) operating grants and contributions and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes.

Proprietary funds distinguish operating revenues an d expenses from non-operating items. Operating revenues and expenses generally result from providing goods and services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the enterprise and internal service funds are charges for sales and services.

Operating expenses for enterprise funds include salaries and employee benefits, maintenance and operation of systems and facilities, administrative expenses and depreciation on capital assets. All revenues/expenses not meeting this definition are reported as non-operating revenues and expenses.

Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 33 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

D. Assets, Liabilities and Net Position or Equity

Deposits and Investments
The Town’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short- term investments with original maturities of three months or less from the date of acquisition.

State statutes authorize the Town to invest in ob ligations of the U.S. Treasury, commercial paper, corporate bonds, repurchase agreements, the State Treasurer’s Investment Pool, and other permitted investments. Invest ments for the Town are reported at fair value. Investments in guaranteed investment contracts are reported at cost. The State Treasurer’s Investment Pool operates in accordance with appropriate state laws and regulations . The reported value of the pool is the same as the fair value of the pool shares.

Fair Value Hierarchy
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Town categorizes its fair value measurements within the fair value hier archy established by generally accepted accounting principles. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 inputs are inputs - other than quoted prices included within level 1 - that are observable for an asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for an asset or liability.

If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.

Cash Equivalents
For purposes of the statement of cash flows, the Town considers all highly liquid investments with maturity of three months or less when purchased to be cash equivalents. Proprietary fund types, cash and investments balances classified as Available for Operations are considered cash equivalents for purposes of the statement of cash flows.

Receivables and Payables
Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred to as either “d ue to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans).

All other outstanding balances between funds are reported as “due to/from other funds”.

The Town has determined that an allowance for uncollectible is not necessary as all receivables have been deemed collectible.

Property taxes are levied as of March 1 on property values assessed as of the same date. State statutes provide that the property tax rate be limited generally to one percent of market value, be levied by only the county, and be shared by applicable jurisdictions.

Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 34 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

D. Assets, Liabilities and Net Position or Equity (continued)

The County of San Mateo (the County) collects the taxes and distributes them to taxing jurisdictions on the basis of assessed valuations subject to voter-approved debt. Property taxes are due on November 1 and March 1, and each installment be comes delinquent after December 10 and April 10, respectively. The Town receives property taxes pursuant to an arrangement with the County known as the “Teeter Plan”. Under the plan, the County assumes responsibility for the collection of the delinquent taxes and pays the full allocation to th e Town. The Town recognizes property tax revenues in the fiscal year in which they are levied for the Town.

Inventories and Prepaid Items
All inventories are valued at cost using the firs t-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when purchased.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements.

Capital Assets
Capital assets, which include property, plant, equipmen t, and infrastructure-type assets such as roads, bridges, sidewalks, and streetlight s, are reported in the accompanying basic financial statements. They are reported in the applicable governmental-type activities columns in the government-wide financial statements.

Capital assets are defined by the government as assets with an initial, individual cost of more than $10,000 and an estimated useful life in excess of one year. Such assets are reco rded at historical cost when available, or at estimated historical cost. Donated capital assets are recorded at estimated fair market value at the date of donation.

Major outlays for capital assets and improvements are capitalized as projects are constructed.

Property, plant, and equipment of the Town is depr eciated using the straight line method over the following estimated useful lives:

A s s e t s Y e a r s
Buildings 50
Infrastructure – street system 40-50
Vehicles 8
Equipment 5-25
Improvements 20

Compensated Absences
It is the government’s policy to permit employees to accumulate earn ed but unused vacation and sick leave benefits. There is a liability for a portion of unpaid accumulated sick le ave since the Town does have a policy to pay certain amounts when certain employees separate from service with the Town. All vacation and sick leave is accrued when incurred in the government-wide fi nancial statements. The Town typically uses the General Fund to liquidate the majority of its compensated absences.

Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 35 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

D. Assets, Liabilities and Net Position or Equity (continued)

Deferred Outflows and Inflows of Resources
Pursuant to GASB Statement No. 63, Financial Reporting of Deferred Outflo ws of Resources, Deferred Inflows of Resources, and Net Position , and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities , the Town recognizes deferred outflows and inflows of resources.

In addition to assets, the statem ent of net position will sometimes report a separate section for deferred outflows of resources. A deferred outflow of resources is defined as a consumption of net position by the government that is applicable to a future reporting period.

In addition to liabilities, the st atement of net position will someti mes report a separate section for deferred inflows of resources. A deferred inflow of resources is defined as an acquisition of net position by the Town that is applicable to a future reporting period.

Pensions
For purposes of measuring the net pension liability and deferred outflo ws/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Town of Colma’s California Public Employees’ Retirement System (CalPERS) plans (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 (i ncluding refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Long-term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable government-type activities statement of net position.

Net Position
Government-wide net position consists of the following:

Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, laws or regulations of other governments.

Unrestricted Net Position – This amount includes all net position that does not meet the definition of “invested in capital assets, net of related debt” or “restricted net position”.

Invested in Capital Assets, Net of Related Debt – This category groups all capital assets into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.

Governmental fund balance consists of the following:

Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 36 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

D. Assets, Liabilities and Net Position or Equity (continued)

Fund Equity
The accompanying basic financial statements reflect certain changes that have been made with respect to the reporting components of fund balances fo r governmental funds. In previous years, fund balances for governmental funds were reported in accordance with previous standards that included components for reserved fund balance, unreserved fund balance, designated fund balance, and undesignated fund balance. Due to the implemen tation of GASB Statement No. 54, the components of the fund balances of governmental funds now reflect the component classifications described below.

In the fund financial statements, governmental fund balances are reported in the following classifications:

Nonspendable fund balance includes amounts that are not in a spendable form, such as prepaid items or supplies inventories, or that are legally or contra ctually required to remain intact, such as principal endowments.

Restricted fund balance includes amounts that are subject to externally enforceable legal restrictions imposed by outside parties (i.e., creditors, grantors , contributors) or that are imposed by law through constitutional provisions or enabling legislation.

Committed fund balance includes amounts whose use is constrained by specific limitations that the government imposes upon itself, as determined by a formal action of the highest-level decision-making authority. The Town Council serves as the Town’s highest level decision-making authority and has the authority to establish, modify or rescind a fund balance commitment via minutes’ action.

Assigned fund balance includes amounts intended to be used by the Town for specific purposes, subject to change, as established either directly by the Town Council or by management officials to whom the assignment authority has been delegated by the Town Council.

Unassigned fund balance is the residual classification that includes the spendable amounts in the General Fund that are available for any purpose.

When expenditures are incurred for purposes for wh ich both restricted and unrestricted (committed, assigned, or unassigned) fund balances are availa ble, the Town’s policy specifies that restricted revenues will be applied first. When expenditures are incurred for the purpos es for which committed, assigned, or unassigned fund bala nces are available, the Town’s po licy is to apply committed fund balances first, then apply assigned fund balances, and finally unassigned fund balances.

Stabilization Reserve
The Town maintains a budget stabiliz ation reserve in an amount sufficient to ensure continuity of operations in the event of a severe economic downturn, which amount is hereby determined to be one hundred percent (100%), rounded to the nearest $100 ,000, of the General Fund expenditures for the prior fiscal year, excluding appropriations toward Accrued Leave Liability Reserve, OPEB contribution, and pension contribution.

Accrued Leave Reserve
The Town maintains an Accrued Leave Reserve committed for vacation payout (and sick leave when related to retirement) when an employee separates fr om the Town. The amount committed will be determined as part of the budget process.

Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 37 -
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (concluded)

D. Assets, Liabilities and Net Position or Equity (concluded)

Litigation Reserve
The Town maintains a Litigation Reserve, in the amount of $100,000, to pay the Town’s costs and attorneys’ fees necessary for the initiation or defense of new litigation authorized by the Town Council after adoption of a budget for the fiscal year in which the litigation commenced

Insurance Reserve
The Town maintains an Insurance Reserve , in the amount of $100,000, to pay for any deductibles charged to the Town by its insurance carrier(s) not accounted for in the adopted budget

Disaster Response and Recovery Reserve
The Town maintains a Disaster Response and Recovery Reserve, in the amount of $750,000, to pay the Town’s costs of emergency repairs to or replacements of parts of the Town infrastructure damaged by any natural or man-made disaster, or to abate or prevent further damage to life or property.

Comparative Data
Certain amounts presented in the prior year data have been reclassified to be consistent with the current years' presentation.

Estimates and Assumptions
The preparation of financial statements in conformi ty with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and di sclosure of contingent assets and liab ilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

NOTE 2 - RECONCILIATION OF GOVERNMENT-WIDE & FUND FINANCIAL STATEMENTS

A. Explanation of Certain Differences Between th e Governmental Fund Balance Sheet and the Government-wide Statement of Net Position

The governmental fund balance sheet includes reconciliation between fund balance – total governmental funds and net position – governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains, “capital assets are not financial resources and are not reported in the funds.”

The details of this difference are as follows:

Capital assets $ 78,134,401
Less: accumulated depreciation (19,853,516)
Net adjustment to increase fund balance – total governmental funds to arrive at net position – governmental activities

$ 58,280,885

Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 38 -
NOTE 2 - RECONCILIATION OF GOVERNMENT-WIDE & FUND FINANCIAL STATEMENTS (continued)

A. Explanation of Certain Differences Between th e Governmental Fund Balance Sheet and the Government-wide Statement of Net Position (concluded)

Another element of the reconciliation explains that “long-term liabilities” are not due and payable in the current period and are therefore not reported in the funds. The details are as follows:

Long-Term Debt Obligations:

Deferred outflows – pension $ 4,323,386
Deferred outflows – OPEB 1,511,061
Deferred inflows – pension (567,792)
Deferred inflows – OPEB (2,166,098)
Compensated absences (1,131,658)
Certificates of participation (4,550,000)
Net other post-employment benefit obligation (11,202,420) Net pension liability (10,987,517)
Net adjustment to decrease fund balance - total governmental funds to arrive at net position – governmental activities

$ (24,771,038)

B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances with the Government-wide Statement of Activities

The governmental fund statement of revenues, expe nditures, and changes in fund balances includes reconciliation between net changes in fund balances – total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains, “Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense.” The details of this difference and other significant components of the difference are as follows:

Capital outlay and disposals $ 1,766,692
Depreciation expense (1,621,638)
Internal service fund (13,801)
Compensated absences 51,936
Certificates of participation 120,000
Pension expense (4,208)
Net other post-employment benefit obligation (OPEB) (146,396) Net adjustment to decrease net changes in fund balances – total governmental funds to arrive at changes in net position of governmental activities

$ 152,585

Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 39 -
NOTE 3 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

A. Budgetary Information

Annual budgets are adopted on a basis consistent with U.S. generally accepted accounting principles for all funds. All annual appropriations lapse at fiscal year-end. Before the end of each fiscal year, all departments of the Town submit requests to the Town Manager so that a budget may be prepared.

Before June 30, the proposed budget is presented to the Town Council for review. The Town Council holds public hearings, and a final budget must be prepared and adopted no later than June 30.

The appropriated budget is prepared by fund, function, and department. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level.

Expenditures exceeded appropriations in the General Fund by $60,562.

Expenditures for capital projects or the creation of additional positions requires the specific authorization of the Town Council. Encumbrance accounting is not employed.

At June 30, 2021, only one non-major fund had negative fund balance as follows: Debt Service.

The fund’s negative fund balance is expected to return to a positive status in fiscal year 2022.

NOTE 4 - DETAILED NOTES ON ALL FUNDS

A. Cash and Investments

The Town maintains a cash and investment pool for all funds. Certain restricted funds that are held and invested by independent outside custodians th rough contractual agreements are not pooled. These restricted funds include cash and investment held by trustees.

Cash and investments as of June 30, 2021, are classi fied in the accompanying financial statements as follows:

Statement of Net Position:

Cash and investments $ 29,305,184
Restricted cash and investments 7,643,752
Total cash and investments $ 36,948,936

Maturity 12
Months or less
13-24
Months
25-60
Months

Total
Demand deposits $ 7,951,059 $ - $ - $ 7,951,059 Local Agency Investment Fund (LAIF) 2,132,294 - - 2,132,294 Public Agency Retirement Services 7,643,752 - - 7,643,752 Certificates of Deposit 750,698 759,044 3,572,775 5,082,517 Money Market Savings 15,275 - - 15,275
San Mateo Co. Treasurer’s Investment Pool 11,105,114 2,395,134 623,791 14,124,039 Total $ 29,598,192 $ 3,154,178 $ 4,196,566 $ 36,948,936

Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 40 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)

A. Cash and Investments (continued)

Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates w ill adversely affect the fair value of the Town’s investment. Generally, the longer the matu rity of an investment, the greater the sensitivity of its fair value to changes in mark et interest rates. Information about the sensitivity of the fair values of the Town’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the above table that sh ows the distribution of th e Town’s investments by maturity or earliest call date.

California Law requires banks and savings and loan associations to pledge government securities with a market value of 110% of the Town’s cash on deposit or first trust deed mortgage notes with a value of 150% of the deposit as collateral for these deposits. Un der California Law, this collateral is held in the Town’s name and places the Town ahead of general creditors of the institution.

As of June 30, 2021, the Town holds $1,291 in un expended proceeds from the Certificates of Participation, which were included in Cash and Investment s recorded in the Capital Projects Fund.

These restricted funds are spent on project costs as defined in the underlying indenture.

The Town does not enter into reverse repurchase agreements. Trustees under bond indentures may also invest in guaranteed investment contracts.

The Town’s investments are carried at fair value instead of cost, as required by U.S. generally accepted accounting principles. The Town adjusts the carrying va lue of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.

The Town is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Sect ion 16429 under the oversight of th e Treasurer of the State of California. The Town reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills, and corporations.

The Town maintains specific cash deposits with the Co unty and voluntarily participates in the external investment pool of the County. The County is restricted by state code in the types of investments it can make. Furthermore, the County Treasurer has a written investment policy, approved by the Board of Supervisors, which is more restrictive than state code as to terms of maturity and type of investment. Also, the County has an investment committee that performs regulatory oversight for its pool as required by California Government Code Section 27134.

The County’s investment policy authorizes the County to invest in obligations of the U.S. Treasury, its agencies and instrumentalities, certificates of de posit, commercial paper rated A-1 by Standard & Poor’s Corporation or P-1 by Moody’s Commercial Paper Record, bankers’ acceptances, repurchase agreements, and the State Treasurer’s investment pool.

At June 30, 2021, the Town’s cash with the County Treasurer is stated at fair value. However, the value of the pool shares in the County that may be withdrawn is determined on an amortized cost basis, which is different than the fair value of the Town’s position in the pool.

Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 41 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)

A. Cash and Investments (concluded)

Fair Value Hierarchy
The Town categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hi erarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

The following is a summary of the fair value hierarch y of the fair value of investments of the Town as of June 30, 2021:

Investment Type Level 2 Uncategorized Total
California Local Agency Investment Fund $ - $ 2,132,294 $ 2,132,294 San Mateo Co. Treasurer’s Investment Pool - 14,124,039 14,124,039 Certificates of Deposit 5,082,517 - 5,082,517
Money Market Savings Account - 15,275 15,275
Public Agency Retirement Services - 7,643,752 7,643,752
Total investments $ 5,082,517 $ 23,915,360 28,997,877 Cash in banks and on hand 7,951,059
Total cash and investments $ 36,948,936

The California Local Agency Investment Fund (LAIF), the San Mateo County Investment Pool and the Public Agency Retirement System are not categorized in the fair value hierarchy but are valued using net asset value which approximates fair value.

Credit Risk
Credit risk is the risk that an issuer of an invest ment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The actu al ratings as of June 30, 2021 are prov ided by Standard and Poor’s except as noted.

Investment Type Total
Not rated:

Money Market Savings Account $ 15,275
California Local Agency Investment Fund 2,132,294 San Mateo County Treasurer’s Investment Pool 14,124,039 Public Agency Retirement Services 7,643,752
Cash in banks and on hand 7,951,059
Certificates of Deposit 5,082,517
Total cash and investments $ 36,948,936

At June 30, 2021 none of the Town’s deposits or investments were exposed to custodial credit risk.

Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 42 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)

B. Receivables

Receivables as of year-end for the government’s individual major and nonmajor funds in the aggregate were as follows:

General
Nonmajor
Funds
Business-type
Funds
Town Capital
Projects Fund
Street
Capital

Total
Receivables:

Interest $ 36,928 $ - $ - $ - $ - $ 36,928 Taxes 2,317,697 - - - - 2,317,697 Accounts 769,795
17,491 15,839 93,567 99,449 996,141 Net total receivables $ 3,124,420 $ 17,491 $ 15,839 $ 93,567 $ 99,449 $ 3,350,766

C. Capital Assets

Capital asset activity for the year ended June 30, 2021 was as follows:

Beginning
Balance

Increases

Decreases
Ending
Balance
Governmental activities:

Capital assets, not being depreciated:

Land $ 6,589,376 $ - $ - $ 6,589,376 Construction in progress 1,464,398 2,984,346 961,537 3,487,207 Total capital assets, not being depreciated 8,053,774 2,984,346 961,537 10,076,583 Capital assets, being depreciated

Buildings 34,554,590 - - 34,554,590
Improvements other than buildings 3,784,093 - - 3,784,093 Machinery and equipment 3,116,867 237,634 - 3,354,501 Infrastructure - street systems 26,364,634 - - 26,364,634 Total capital assets, being depreciated 67,820,184 237,634 - 68,057,818 Less accumulated depreciation for:

Buildings (4,448,847) (691,032) (367,450) (5,507,329) Improvements other than buildings (2,345,205) (177,905) - (2,523,110) Machinery and equipment (1,786,460) (266,358) (126,300) (2,179,118) Infrastructure - street systems (9,157,616) (486,343) - (9,643,959) Total accumulated depreciation (17,738,128) (1,621,638) (493,750) (19,853,516) Total capital assets, being depreciated, net 50,082,056 (1,384,004) (493,750) 48,204,302 Governmental activities capital assets net $ 58,135,830 $ 1,600,342 $ 1,455,287 $ 58,280,885

Depreciation expense was charged to functions/programs of the Town as follows:

Governmental activities:

Public works $ 636,606
General government 462,940
Public safety 310,770
Planning 2,911
Recreation 208,411
Total depreciation expense - governmental activities $ 1.621,638

Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 43 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (continued)

C. Capital Assets (concluded)

Depreciation expense was charged to functions/programs of the Town as follows:

Business-type activities:

Sewers $ 21,984
Town properties 63,665
Total depreciation expense - business-type activities $ 85,649

D. Interfund Receivables, Payables and Transfers

Interfund transfers at June 30, 2021 were as follows:

Transfers In Transfers Out
General Fund $ - $ 576,526 Other governmental Funds 295,612 - Town Capital Project Fund 250,000 520,000
Street Capital 927,000 -
Sewer 30,914 -
Other governmental Funds -
407,000
Totals $ 1,503,526 $ 1,503,526

The transfers out of the General Fund, Other Gove rnmental Funds and Capital Improvements Project Fund were made for the purpose of financing Street Improvement Capital Projects and debt service undertaken during the fiscal year.

Beginning

Transfers &
Retirements
&

Ending
Balances Additions Adjustments Balances
Business-type activities:

Capital assets, not being depreciated:

Land $ 1,006,095 $ - $ - $ 1,006,095 Total capital assets, not being depreciated: 1,006,095 - - 1,006,095

Capital assets being depreciated:

Buildings 2,615,156 - - 2,615,156 Infrastructure 380,910 - - 380,910 Total capital assets, being depreciated 2,996,066 - - 2,996,066

Less accumulated depreciation for:

Buildings (1,419,541) (63,665) - (1,483,206) Infrastructure (161,075) (21,984) - (183,059) Total accumulated depreciation (1,580,616) (85,649) - (1,666,265) Total capital assets, being depreciated, net 1,415,450 (85,649) - 1,329,801 Business-type activities capital assets net $ 2,421,545 $ (85,649) $ - $ 2,335,896 Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 44 -
NOTE 4 - DETAILED NOTES ON ALL FUNDS (concluded)

D. Interfund Receivables, Paya bles and Transfers (concluded)

The composition of Due to/from was:

Receivable
Fund

Payable Fund
General Fund $ 806 $ - Debt Service - 806
Totals $ 806 $ 806

The General Fund to the Debt Service Fund to offset negative cash.

E. Long-Term Debt

Governmental Activities:

Changes in Long-Term Liabilities
Long-term debt activity for the 2021 fiscal year was as follows:

Beginning
Balances Additions Reductions
Ending
Balances
Due Within
One Year
Certificates of Participation $ 4,670,000 $ - $ 120,000 $ 4,550,000 $ 125,000 Net OPEB 12 ,704,842 - 1 ,502,422 11 ,202,420 - Net Pension Liability 10 ,094,682 892 ,835 - 10 ,987,617 - Compensated absences 1 ,359,277 65 ,325 138 ,410 1,286,192 154 ,534 Totals $28,828,801 $ 958,260 $ 1,760,832 $28,026,229 $ 279,534

Certificates of Participation
On September 24, 2015, the Town issued $5.3 million in Certificates of Part icipation through Stifel, Nicolaus & Company, Incorporated . The funds and debt service payments are administered under a Trustee Agreement with Bank of New York Mellon. This financing will be us ed to fund a portion of the Town Hall renovation project. The certificates bear interest at variable rates from 0.38% to 4.12% and payments are due on each May 1.

The annual requirements to amortize the debt outstanding as of June 30, 2021, including interest payments, are as follows:

Period Ending June 30, Principal Interest Total
2022 $ 125,000 $ 169,569 $ 294,569 2023 130,000 164,569 294,569
2024 135,000 160,669 295,669
2025 135,000 156,619 291,619
2026 140,000 151,219 291,219
2027-2031 775,000 684,657 1,459,657 2032-2036 930,000 539,746 1,469,746 2037-2041 1,120,000 347,801 1,467,801 2042-2045 1,060,000 108,391 1,168,000 Total $ 4,550,000 $ 2,482,849 $ 7,032,849

Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 45 -
NOTE 5 - OTHER INFORMATION (continued)

A. Risk Management

The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the Town obtains insurance coverage. The Town is a member of the ABAG PLAN Corporatio n (PLAN), which provides a pooled risk sharing insurance program. The PLAN provides the Town wi th insurance coverage of $15 million per loss for liability claims. The Town has a $50,000 self-insur ance retention limit similar to a deductible. The PLAN insurance has two different layers of coverage. Layer 1 is a $5 million self-insured layer shared by participants; Layer 2 is commercial excess insu rance coverage for $10 million beyond the $5 million PLAN coverage. The PLAN also provides the Town with $1 million pooled employee dishonesty coverage.

Property coverage is also provided by the PLAN with the Town having a $10,000 deductible. The PLAN provides the coverage using a self-insured pool to cover losses up to $100,000. The PLAN purchases an insurance policy to cover losses abov e its $100,000 self-insured retention with a per occurrence coverage for all members combined up to $1 billion. Work ers’ compensation insurance is provided to the Town by EIA (Entity Insurance Au thority) at statutory coverage limits, without a deductible. The Town had no signif icant changes in insurance coverage during the year. For the Fiscal Year ending June 30, 2021, the Town incurred liability claims expenses totaling $73,362. There was one open claim as of June 30, 2021.

B. Contingencies and Commitments

Litigation
The Town is involved in litigation incurred in the normal course of conducting Town business. Town management believes, based upon consultation with its counsel, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the Town.

Disallowed Claims
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts al ready collected, may consti tute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the government expects such amounts, if any, to be immaterial.

The immediate impact to the District’s operations included limited available resources to perform day- to-day operations. It is anticipated that the impacts from this pandemic will continue for some time. As of the report date, the financial impact of the coronavirus outbreak cannot be measured.

Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 46 -
NOTE 5 - OTHER INFORMATION (continued)

C. Public Employees Retirement System

Plan Description - Based on PERS eligibility cr iteria all qualified permanent and probationary employees are eligible to participate in the Town’s following cost-sharing multiple employer defined benefit pension plans (Plans):

 Town Miscellaneous (Tier 1)
 Town Miscellaneous (Tier 2)
 Town Miscellaneous (Tier 3 - PEPRA)
 Town Safety (Tier 1)
 Town Safety (Tier 2)
 Town Safety (Tier 3 - PEPRA)

The Plans are administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plans are established by State statute and Town resolution.

CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website
.

Benefits Provided - CalPERS provides service retire ment and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits.

All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, th e 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The applicable PERS plan depends on the employee classification and hire date. In some situations hiring of an employee who was previously an active member in PERS results in the “Classic” Plan benefit regardless of the date of hiring.

The Plan provisions and benefits in effect at June 30, 2021, are summarized as follows:

Town Miscellaneous

Hire date

Prior to
August 1, 2012
8/1/2012 –
12/31/2012
(or “Classic”)

On or after
January 1, 2013
Benefit formula 2.5% @ 55 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 63 52 - 67
Monthly benefits, as a % of eligible
compensations

2.0% to 2.5%

1.091% to

2.418%

1.0% to 2.5%
Required employee contribution rates 8% 7% 6.25%
Required employer contribution rates 19.176% 8.005% 6.25% Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 47 -
NOTE 5 - OTHER INFORMATION (continued)

D. Public Employees Retirement System (continued)

The Town’s Miscellaneous and Safety Rate Plans are part of the public agency cost-sharing multiple- employer defined benefit pension plan (PERF C), which is administered by the California Public Employees’ Retirement System (CalPERS). PERF C consists of a miscellaneous pool and a safety pool (also referred to as “risk pools”), which are comprised of individual employer miscellaneous and safety rate plans, respectively.

Individual employers may sponsor more than one miscellaneous and safety rate plan. The employer participates in one cost-sharing multiple-employer defined benefit pension plan regardless of the number of rate plans the employer sponsors. The Town sponsors six rate plans (three miscellaneous and three safety).

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 rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to fi nance any unfunded accrued liability. The Town is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

In fiscal year 2015, the Town established a Sect ion 115 irrevocable trust with the Public Agency Retirement Systems (PARS). As of June 30, 2021 the Town reported the account balance of $1,931,518 as restricted investments in the General Fund.

For the year ended June 30, 2021, the contributions r ecognized as part of pe nsion expense for each Plan were as follows. The Town made a $1.0 million supplemental co ntribution to CalPERS in the 2018-19 fiscal year.

Town Safety

Hire date

Prior to
January 1, 2012
On or after
January 1, 2012
(or “Classic”)

On or after
January 1, 2013
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 - 55 50 - 55 50 - 57
Monthly benefits, as a % of eligible
compensations

2.4 to 3%

2.0% to 2.7%
Required employee contribution rates 9% 9% 11.5%
Required employer contribution rates 34.595% 20.774% 11.5% Total Miscellaneous
Employer Contributions $508,104

Total Safety
Employer Contributions $1,404,495
Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 48 -
NOTE 5 - OTHER INFORMATION (continued)

C. Public Employees Retirement System (continued)

As of June 30, 2021, the Town reported net pension liabilities for its proportionate shares of the net pension liability of the Miscellaneous and Safety Plans as follows:

The Town’s net pension liability for the Plans is measured as the proportionate share of the net pension liability. The net pension liability of the Plan s is measured as of June 30, 2020, and the total pension liability for each Plan used to calculate the net pension liabilit y was determined by an actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The Town’s proportion of the net pension liability was based on a projection of the Town’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The Town’s proportionate share of the net pension liability for each Plan as of June 30, 2019 and 2020 was as follows:

For the year ended June 30, 2021, the Town recognized pension expe nse of $1,131,376. At June 30, 2021, the Town reported deferred outf lows of resources and deferred inflows of resources related to pensions from the following sources:

$1,912,599 reported as deferred outflows of resour ces related to contribu tions subsequent to measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022.

Proportionate
Share of Net
Pension Liability
Miscellaneous $ 2,229,557
Safety 8,757,960
Total Net Pension Liability $ 10,987,517
Town Miscellaneous Plan Miscellaneous
Proportion - June 30, 2019 .051%
Proportion - June 30, 2020 .055%
Change – Increase (Decrease) (.001%)
Town Safety Plan Safety
Proportion - June 30, 2019 .129%
Proportion - June 30, 2020 .131%
Change – Increase (Decrease) (.002%)

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Pension contributions subsequent to measurement date $ 1,912,599 $ - Differences between actual and expected experience 794,031 - Changes in assumptions - 45,075
Net differences between projected and actual earnings
on plan investments 256,580

-
Change in proportions and differences between actual
Contributions and proportionate share of contributions 1,360,176

522,717
Total $ 4,323,386 $ 567,792
Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 49 -
NOTE 5 - OTHER INFORMATION (continued)

C. Public Employees Retirement System (continued)

Other amounts reported as deferred outflows of resour ces and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Actuarial Assumptions - For the measurement period ended June 30, 2020, the total pension liability was determined by rolling forward the June 30, 2019 total pension liability. The June 30, 2020 total pension liability was based on the following actuarial methods and assumptions:

(1) The mortality table used was developed based on CalPERS’ specific data. The table includes 15 years of mortality improvemen ts using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the CalPERS 2017 experience st udy report (based on CalPERS demographic data from 1997 to 2015) available on CalPERS website.

Discount Rate – The discount rate used to measure the total pensio n liability was 7.15% for each Plan.

To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested pl ans 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 plans run out of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.15 percent will be applied to all plans in the Public Employees’ Re tirement Fund (PERF). Th e stress test results are presented in a detailed re port called “GASB Crossover Testing Report” that can be obtained from the CalPERS website under the GASB 68 section.

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 th e expected pension fund (PERF) cash flows. Using historical returns of all the Public Employees Retire ment Funds’ asset classes (which includes the agent plan and two cost-sharing plans or PERF A, B, and C funds), expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building- block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each PERF fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits of cash flows as the one calculated using both short-term and long-term returns.

Year Ended June 30

2022 $ 536,771
2023 683,598
2024 495,484
2025 127,142
Total $ 1,842,995
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.50%
Projected Salary Increase Va ries by Entry Age and Service Mortality
Derived using CalPERS Membership Data for all Funds (1) Post Retirement Benefit Contract COLA up to 2.75% until purchasing power Increase Protection allowance floor on power applies, 2.75% thereafter Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 50 -
NOTE 5 - OTHER INFORMATION (continued)

C. Public Employees Retirement System (concluded)

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 table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate - The following presents the Town’s proportionate share of the net pension liability for each Plan, calculated using the discount rate for each Plan, as well as what the Town’s proportionate share of the net pension liability would be if it were calculated us ing a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Pension Plan Fiduciary Net Position
- Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

D. Fund Balance for Governmental Funds

Portions of the unassigned fund balance in the fund financial statements may be assigned to indicate tentative plans for financial resources being utili zed in a future period, such as for general contingencies or capital projects. Such plans are subject to change, have not been legally authorized, and may not result in expenditures.

Asset Class
(1)
New Strategic
Allocation
Real Return
Years 1-10 (2)
Real Return
Years 11+ (3)
Global Equity 50.0% 4.80% 5.98%
Global Fixed Income 28.0% 1.00% 2.62%
Inflation Sensitive 0.0% 0.77% 1.81%
Private Equity 8.0% 6.30% 7.23%
Real Estate 13.0% 3.75% 4.93%
Liquidity 1.0% 0.00% (0.92)%
Total 100%
(1) 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. (2) An expected inflation of 2.0% used for this period. (3) An expected inflation of 2.92% used for this period.

Miscellaneous Safety
1% Decrease 6.15% 6.15%
Net Pension Liability $3,907,955 $13,536,674
Current Discount Rate 7.15% 7.15%
Net Pension Liability $2,229,557 $8,757,960
1% Increase 8.15% 8.15%
Net Pension Liability $842,749 $4,836,819
Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 51 -
NOTE 5 - OTHER INFORMATION (concluded)

D. Fund Balance for Governmental Funds (concluded)

General Fund
Capital
Improvement
Project Fund
Street
Improvement
Capital
Project Fund
Other
Governmental
Funds Total
Nonspendable:

Prepaid items $ 116,242 $ - $ - $ - $ 116,242 Restricted:

Restricted Pension and
OPEB trusts 7,643,752 - - - 7,643,752 Measure A - - - 80,376 80,376 Measure W - - - 61,371 61,371 Gas Tax - - - 83,615 83,615 Housing impact Fee - - - 278,563 278,563 Law enforcement - - - 78,588 78,588 Public Safety Grant -
- - 6,315 6,315 Total 7,643,752 - - 588,828 8,232,580 Committed fund balances were
Debt service costs 600,000 - - - 600,000 Compensated absences 431,341 - - - 431,341 General & Economic
reserve 12,000,000 - - - 12,000,000 Total 13,031,341 - - - 13,031,341 Assigned Fund Balances were
Litigation 100,000 - - - 100,000 Insurance 100,000 - - - 100,000 Disaster response 750,000 - - - 750,000 Capital Improvements - 1,572,253 - - 1,572,253 Street Improvements - - 854,019 - 854,019 Total 950,000 1,572,253 854,019 - 3,376,272 Unassigned Fund Balance was:

General Fund 13,304,657 - - (806) 13,303,851

Grand Total $ 35,045,992 $ 1,572,253 $ 854,019 $ 588,022 $38,060,286

Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 52 -
NOTE 6 - DEFERRED COMPENSATION PLAN

The Town employees may defer a portion of their compensation under a Town sponsored Deferred Compensation Plan (the Plan) cr eated in accordance with Internal Revenue Code Section 457. Under this Plan, participants are not taxed on the deferred portion of the compensation until it is distributed to them; distributions may be made only at termination, retirement, death or in an emergency as defined by the Plan.

Separate from any amounts that employees voluntaril y defer, regular employees are eligible to receive a $100 monthly matching contribution made to the Plan as a benefit by the Town. A total of 34 employees received this benefit du ring the fiscal year ending June 30, 2021. The Town’s contributions towards this benefit for the fiscal year ended June 30, 2021 were $38,350.

The laws governing the Plan assets require Plan assets to be held by a Trust for the exclusive benefits of Plan participants and their beneficiaries. Since the assets held under this Plan are not the Town’s property, are not managed by the Town and are not subject to claims by general creditors of the Town, they have been excluded from these financial statements.

NOTE 7 - POST-EMPLOYMENT BENEFITS OTHER THAN RETIREMENT

Other Post-employment Benefits Other Than Pensions (OPEB) 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 Town’s Retiree Benefits Plan (the Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by the Plan. For this purpose, the Plan recognizes benefit payments when due and payable in accordance with the benefit terms.

Plan Description
The Town administers a single-employer defined-benefit post-employment healthcare plan. Benefits vary by hire date and employment status: General employees, Colma Peace Officers Association (POA) employees, and Police Communications/Records (PCR) employees. Benefits continue to dependents, including surviving spouses.

Benefits Provided
Benefit Tier A covers POA and PCR employees hi red before May 31, 2008, and General employees hired before July 1, 2012. The Town pays 100% of medical premiums.

Benefit Tier B covers General employees hired between July 1, 2012 and March 31, 2017, and POA and PCR employees hired after June 1, 2008, but be fore June 30, 2012. The Town pays the medical premium multiplied by a vesting percentage, rangin g from 50% for those with at least 10 years of service to 100% for those who have 20 or more years of service.

Benefit Tier C covers POA and PCR employees hired between July 1, 2012 and March 31, 2017.

Benefits are the same as Tier B, but the maximum paid by the Town is capped at the highest of the second most costly plan.

Benefit Tier D for General, POA, and PCR employee s hired after April 1, 2017, the Town pays the PEMHCA minimum for those enrolled in a CalPERS medical plan. As stated in the memorandums of understanding with the POA and PCR, the start date for this Tier was January 1, 2017. The implementation of the required plans delayed the im plementation to April 1, 2017. No new employees were eligible between January 1, 2017 and March 31, 2017.

Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

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NOTE 7 - POST-EMPLOYMENT BENEFITS OT HER THAN RETIREMENT (continued)

The Town pays 100% of the dental premiums for General employees and PCR employees hired before May 1, 2010, and for POA employees hired before June 1, 2008. Employee bene fits are governed by the Town Council.

In fiscal year 2015, the Town established a Sect ion 115 irrevocable trust with the Public Agency Retirement Systems (PARS). As of June 30, 2021 the Town reported the account balance of $5,712,234 as restricted investments in the General Fund.

Employees Covered by Benefit Terms
At June 30, 2020 (the census date), the benefit terms covered the following employees:

Category Count
Inactive employees, spouses, or beneficiaries currently receiving benefit payments: 62 Inactive employees entitled to but not yet receiving benefit payments: 0 Active employees: 35
Total 97

Contributions
The Town makes contributions based on an actuarially determined rate.

Contribution rate: 41.37% for 16 years, 14.66% thereafter Reporting period contributions $1, 632,395 (includes implicit subsidy credit.)

Financial Report
The Town issues a stand-alone financial report that is available to the public. The report is available at:
https://www.colma.ca.gov/departments/finance/

Net OPEB Liability
The Town’s total OPEB liability was valued as of June 30, 2020 and was used to calculate the net OPEB liability measured as of June 30, 2020.

Actuarial Assumptions
The total OPEB liability in the June 30, 2020 actuar ial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:

Measurement Date:

June 30, 2019 June 30, 2020
Discount Rate 5.47% 4.97%
Investment Rate of Return 5.47% 4.97%
Inflation 1.75% 2.50%
Healthcare Cost Trend Rates
Pre-Medicare 6.5% 7.0%* *Trending down to 4.04% over 55 years. Applies to calendar years. Medicare 6.0% 4.0%* Salary Increases

2.75%

2.75%**

**Additional merit- based increases
based on CalPERS merit salary
increase tables.

Mortality Rates Based on CalPERS tables.

Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

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NOTE 7 - POST-EMPLOYMENT BENEFITS OT HER THAN RETIREMENT (continued)

Actuarial Assumptions (concluded)

 Projections of the sharing of benefit-related costs are based on an established pattern of practice.  Experience studies come from the CalPERS Pension Assumption Model, revised May 14, 2018.  Inactive employees (retirees) pay the cost of benefits in excess of the Town’s contribution.  There were no ad hoc postemployment benefit changes (including ad hoc COLAs) to the plan.

Discount Rate
GASB 75 allows the use of a discount rate that is up to the expected long-term rate of return on the assets in the Trust set aside to pay benefits, if the plan sponsor makes regular contributions to the Trust such that the assets are not depleted at any point in the future. If the plans’ actuary determines that contributions are not sufficient to keep the Trust fu nded, a blend of the long-term rate of return and the yield or index rate for 20-year, tax-exempt muni cipal bonds will be used for the periods when the Trust funds are not sufficient to cover benefit payments. Based on this requirement, and with the approval of the plan sponsor, the discount rate used to measure the total OPEB liability is 4.97%

Long-Term Expected Real Rate of Return
The long-term expected rate of return is determined using the long-term rates of return developed by Highmark Capital Management for the Moderately Conservative Investment Strategy as of May 20, 2020.

Current Liability Amount
Current OPEB Liability $ 779,660
Non-Current OPEB Liability 15,505,451
Total OPEB Liability $ 16,285,111

Asset Class
Target
Allocation
Asset Class
Expected Return
Equity - Large-Cap Core 16% 7.50%
Equity - Mid-Cap Core 3% 7.80%
Equity - Small-Cap Core 5% 8.70%
Equity - Real Estate 1% 6.70%
Equity - International 4% 7.80%
Equity - Emerging Market 2% 7.80%
Fixed Income - Short-Term Bonds 14% 3.30%
Fixed Income - Intermediate-Term Bond

49% 4.10%
Fixed Income - High Yield 2% 6.90%
Cash 5% 2.40% Total/Average 100%
Expected Long-Term Rate of Return 5.47%
Expected Long-Term Rate of Return, Net of Fees 4.97% Expected Volatility 5.07%
Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

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NOTE 7 - POST-EMPLOYMENT BENEFITS OT HER THAN RETIREMENT (continued)

Expected Average Remaining Service Lives (EARSL)
The effects on the total OPEB liability of (1) changes of economic and demographic assumptions or of other inputs and (2) differences between expected and actual experience are required to be included in OPEB expense in a systematic and rational manner ov er a closed period equal to the average of the expected remaining service lives of all employees th at are provided with benefits through the OPEB plan (active employees and inactive employees), begi nning in the current period. The expected average remaining service lives (EARSL) for the current period follows.

EARSL: 5.2 years

Changes in the Net OPEB Liability
Increase (Decrease)
Total OPEB
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net OPEB
Liability
(c) = (a) – (b)
Balance as of Report Date June 30, 2020 $ 16,813,092 $ 4,108,250 $ 12,704,842 Changes for the year:

Service Cost 657,975 - 657,975
Interest 932,475 - 932,475
Changes of Benefit Terms - - -
Differences Between Expected and
Actual Experience

(1,246,250) - (1,246,250)
Changes of Assumptions (24,222) - (24,222)
Contributions
Employer – Town’s Contribution - 1,475,265 (1,475,265) Employer - Implicit Subsidy - 157,130 (157,130)
Net Investment Income - 214,352 (214,352)
Benefit Payments (690,829) (690,829) -
Implicit Subsidy Credit (157,130) (157,130) -
Administrative expenses - (24,347) 24,347
Other Miscellaneous Income/(Expense) - - -
Net Changes (527,981) 974,441 (1,502,422) Balance as of Report Date June 30, 2021 $ 16,285,111 $ 5,082,691 $ 11,202,420

Sensitivity of Liabilities to Changes in the Discount Rate and Healthcare Cost Trent Rate Sensitivity of the total and net OP EB liability to changes in the disc ount rate. The total and net OPEB liability of the Town, as well as wh at the Town’s total and net OPEB liability would be if they were calculated using a discount rate that is one pe rcentage point lower (3.97%) or one percentage point higher (5.97%) follows:

1% Decrease
(3.97%)
Discount Rate
(4.97%)
1% Increase
(5.97%)
Total OPEB Liability (Asset) $ 18,352,924 $ 16,285,111 $ 14,577,270 Increase (Decrease) 2,067,813 (1,707,841)
% Change 12.7% -10.5%

Net OPEB Liability (Asset) $ 13,270,233 $ 11,202,420 $ 9,494,579 Increase (Decrease) 2,067,813 (1,707,841)
% Change 18.5% -15.2%
Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 56 -
NOTE 7 - POST-EMPLOYMENT BENEFITS OTHER THAN RETIREMENT (concluded)

Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The healthcare trend for this valuation started at 7.00% and decreased to 4.04% over 55 years. The total OPEB liability of the Town, as well as what the Town’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower (6.00%) or one percentage point higher (8.00%) than current healthcare cost trend rates follows:

1% Decrease
(6.00%)
Trend Rate
(7.00%)
1% Increase
(8.00%)
Total OPEB Liability (Asset)
$ 14,453,093 $ 16,285,111 $ 18,521,456
Increase (Decrease) (1,832,018) 2,236,345
% Change -11.2% 13.7%

Net OPEB Liability (Asset) $ 9,370,402 $ 11,202,420 $ 13,438,765 Increase (Decrease) (1,832,018) 2,236,345
% Change -16.4% 20.0%

OPEB Expense and Deferred Inflows and Outflows of Resources Related to OPEB For the year ended June 30, 2021 the Town recogn ized an OPEB expense of $1,039,969. The Town reported deferred outflows of resources and deferre d inflows of resources related to OPEB from the following sources:

$737,963 reported as deferred outflows of resour ces related to contribu tions subsequent to measurement date will be recognized as a reduction of the net OPEB liability in the year ended June 30, 2022.

Amounts reported as deferred outflows of resour ces and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

Fiscal Year Ended

2022 $ (329,319)
2023 (329,322)
2024 (354,842)
2025 (342,100)
2026 (43,860)
Remaining 6,443

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between actual and expected experience $ 694,634 $ (1,006,586) Changes of assumptions 40,731 (1,159,512)
Net difference between projected and actual earnings
on OPEB plan investments 37,733

-
Contributions subsequent to measurement date 737,963 - Total $ 1,511,061 $ (2,166,098)
Town of Colma

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2021

- 57 -
NOTE 8 - PRIOR PERIOD ADJUSTMENT

The prior period adjustment of $175,683 was to correct the accrual of the current compensated absences liability reported in the General Fund as of June 30, 2020, as follows:

Fund balances, beginning of period $ 30,374,400 Prior period adjustment 175,683
Fund balances, beginning of period restated $ 30,550,083

NOTE 9 - SUBSEQUENT EVENTS

On March 11, 2021, HR 1319, the American Rescue Plan Act of 2021 (ARPA), was signed into law.

ARPA was designed to provide assis tance to individuals, businesses and, state and local governments, to assist in the economic recovery from the on going COVID-19 pandemic. The Town of Colma was granted an allocation of $356,200, delivered in the fiscal year ending in June 2022. The qualified use of these funds includes: replace lost public sector reve nue, respond to the far-reaching public health and negative economic impacts of the pandemic, provide premium pay for essential workers, and invest in water, sewer, and broadband infrastructure.

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Annual Comprehensive Financial Report
June 30, 2021

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Required Supplementary Information

Annual Comprehensive Financial Report
June 30, 2021

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Annual Comprehensive Financial Report
June 30, 2021

Actual Variance with
Original Final Amounts Final Budget

REVENUES
Sales tax 11,400,000$ 10,432,019$ 13,620,617$ 3,188,598$ Cardroom tax 4,264,410 1,109,236 2,213,814 1,104,578 Property and other taxes 625,200 586,118 622,787 36,669 Other taxes 126,500 143,112 141,021 (2,091) Licenses and permits 277,040 156,358 348,147 191,789 Fines and forfeits 103,170 86,888 108,484 21,596 Intergovernmental 67,010 146,169 448,184 302,015 Use of money and property 609,990 373,091 1,196,896 823,805 Other revenues 127,300 21,451 1,037,686 1,016,235 Charges for services 135,220 88,936 43,019 (45,917) Total revenues 17,735,840 13,143,378 19,780,655 6,637,277

EXPENDITURES
Current:

General government 3,999,590 3,963,824 3,931,655 32,169 Public safety 8,610,680 7,557,157 7,976,511 (419,354) Public works 2,439,030 1,925,237 1,852,211 73,026 Planning 497,420 851,609 295,710 555,899 Recreation 1,424,870 349,831 652,133 (302,302) Total expenditures 16,971,590 14,647,658 14,708,220 (60,562) Excess (deficiency) of
revenues over expenditures 764,250 (1,504,280) 5,072,435 6,576,715

OTHER FINANCING SOURCES (USES)
Transfers in - - - - Transfers out (1,284,170) (698,670) (576,526) 122,144 Total other financing sources (uses) (1,284,170) (698,670) (576,526) 122,144 Net change in fund balance (519,920)$ (2,202,950)$ 4,495,909 6,698,859$ Fund balance, beginning of period 30,374,400
Prior period adjustment 175,683
Fund balances, beginning of period restated 30,550,083
Fund balance, end of period 35,045,992$
Amounts
(UNAUDITED)
Town of Colma

REQUIRED SUPPLEMENTARY INFORMATION

BUDGETARY COMPARISON SCHEDULE - GENERAL FUND
For the Year Ended June 30, 2021
Budgeted
- 61 -
Town of Colma
Required Supplementary Information (Unaudited)

NOTES TO THE BUDGETARY COMPARISON SCHEDULE
For the Fiscal Year Ended June 30, 2021

- 62 -
The Town follows these procedures in establishing the operating budgetary data reflected in the financial statements:

 Prior to June 30, the Town Manager submits to the Town Council a proposed annual operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means for financing them. Public hearings are conducted to obtain taxpayer comments
 The budget is legally enacted thro ugh passage of a resolution during a regular Town Council meeting in the month of June.
 The Town Manager may transfer budgeted amounts wi thin a fund; however, any revision that alter the total expenditures of any fund must be approved by the Town Council.  Formal budgetary integration is employed as a management control device during the year for the General Fund, Special Revenue Funds, Debt Service Fund, Enterprise Funds, and the Capital Project Funds. These are the only funds with legally adopted budgets.  Budgets are adopted on a basis consistent with US. GAAP, except for Capital Project Fund expenditures, which are budgeted for the life of the project.  Budgeted amounts are as originally adopted or as amended by the Town Council.  Encumbrance accounting is employed as an exte nsion of formal budgetary integration in the governmental fund types. Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditures of monies are r ecorded in order to reserve that portion of the applicable appropriation. Encumbrances outstanding at year-end are recorded as reservations of fund balance since they do not constitute expenditures or liabilities. Outstandin g encumbrances at year-end are automatically re-appropriated for the following year. Unencumbered and unexpended appropriations lapse at year-end unless Town Council takes action in the form of a resolution to continue the appropriations into the following fiscal year.

Measurement Date, June 30 2020 2019 2018 2017 2016 2015 2014 Proportion of the net pension liability 0.05286% 0.05113% 0.07851% 0.07722% 0.07743% 0.08263% 0.07547% Proportion share of the net pension liability 2,229,557$ 2,047,539$ 2,958,883$ 3,044,014$ 2,689,973$ 2,267,047$ 1,865,120$ Covered - employee payroll 2,174,997$ 1,915,941$ 1,714,156$ 1,569,041$ 1,439,421$ 1,680,743$ 1,818,575$ Proportionate share of the net pension liability 102.51% 106.87% 172.61% 194.00% 156.93% 144.49% 129.57% as percentage of covered-employee payroll
Plan fiduciary net position as a percentage of
the total pension liability 82.32% 82.50% 71.95% 73.31% 74.06% 78.40% 79.82% * Fiscal year 2015 was the 1st year of implementation.

Town of Colma

SCHEDULE OF THE LOCAL GOVERNMENT'S PROPORTIONATE

SHARE OF THE NET PENSION LIABILITY - MISCELLANEOUS
June 30, 2021
- 63 -
Measurement Date, June 30 2020 2019 2018 2017 2016 2015 2014 Proportion of the net pension liability 0.13145% 0.12891% 0.12783% 0.12783% 0.19457% 0.19974% 0.20336% Proportion share of the net pension liability 8,757,960$ 8,047,143$ 7,539,448$ 7,638,175$ 6,759,099$ 5,479,917$ 5,026,111$ Covered - employee payroll 2,672,295$ 2,666,824$ 2,316,450$ 2,180,395$ 2,164,223$ 1,881,631$ 2,050,734$ Proportionate share of the net pension liability 327.73% 301.75% 325.47% 350.31% 312.31% 291.23% 267.11% as percentage of covered-employee payroll
Plan fiduciary net position as a percentage of
the total pension liability 75.11% 75.54% 75.31% 73.31% 74.06% 78.40% 79.82% * Fiscal year 2015 was the 1st year of implementation.

Town of Colma

SCHEDULE OF THE LOCAL GOVERNMENT'S PROPORTIONATE

SHARE OF THE NET PENSION LIABILITY - SAFETY
June 30, 2021
- 64 -
Fiscal Year Ending June 30 2021 2020 2019 2018 2017 2016 2015 Contractually required contribution
(actuarially determined) 508,104$ 572,633$ 1,429,544$ 333,699$ 294,899$ 359,763$ 226,748$ Contributions in relation to the
actuarially determined contributions (508,104) (572,633) (1,429,544) (333,699) (290,520) (249,024) (226,748) Contribution deficiency (excess) -$ -$ -$ -$ 4,379$ 110,739$ -$ Covered - employee payroll 2,377,024$ 2,174,997$ 1,915,941$ 1,714,156$ 1,569,041$ 1,439,421$ 1,680,743$ Contributions as a percentage of
covered-employee payroll 21.38% 26.33% 74.61% 19.47% 18.79% 24.99% 13.49% Notes to Schedule:
* Fiscal year 2015 was the 1st year of implementation.

Benefit Changes: There were no changes to benefit terms that applied to all members of the Public Agency Pool.

Changes of Assumptions: There were no changes of assumptions.

Town of Colma

SCHEDULE OF CONTRIBUTIONS - MISCELLANEOUS
June 30, 2021
Town Miscellaneous Plan
- 65 -
Fiscal Year Ending June 30 2021 2020 2019 2018 2017 2016 2015 Contractually required contribution
(actuarially determined) 1,404,495$ 1,317,296$ 1,050,947$ 930,366$ 788,713$ 820,095$ 712,647$ Contributions in relation to the
actuarially determined contributions (1,404,495) (1,317,296) (1,050,947) (930,366) (757,355) (687,933) (712,647) Contribution deficiency (excess) -$ -$ -$ -$ 31,358$ 132,162$ -$ Covered - employee payroll 2,325,564$ 2,672,295$ 2,666,824$ 2,316,450$ 2,180,395$ 2,164,223$ 1,881,631$ Contributions as a percentage of
covered-employee payroll 60.39% 49.29% 39.41% 40.16% 36.17% 37.89% 37.87% Notes to Schedule:
* Fiscal year 2015 was the 1st year of implementation.

Benefit Changes: There were no changes to benefit terms that applied to all members of the Public Agency Pool.

Town of Colma

SCHEDULE OF CONTRIBUTIONS - SAFETY
June 30, 2021
Changes of Assumptions: There were no changes of assumptions.

Town Miscellaneous Plan
- 66 -
Fiscal year 2021 2020 2019 2018
Total OPEB Liability
Service cost 657,975$ 780,902$ -$ 758,157$ Interest 932,475 901,033 58,173 843,948 Benefit payments, included refunds of employee contributions (690,829) (620,318) (57,557) (508,719) Change in assumptions (24,222) 56,399 (1,954,200) - Difference between actual and expected experience (1,246,250) 175,759 973,195 - Implicit Subsidy Credit (157,130) (142,283) - (100,546) Net change in total OPEB liability (527,981) 1,151,492 (980,389) 992,840 Total OPEB liability - beginning of year 16,813,092 15,661,600 16,641,989 15,649,149 Total OPEB liability - end of year 16,285,111$ 16,813,092$ 15,661,600$ 16,641,989$ Plan Fiduciary Net Position
Net investment income 214,352$ 245,743$ 27,073$ 116,812$ Contributions
Employer - explicit subsidy 1,475,265 1,698,720 74,086 1,536,095 Employer - implicit subsidy 157,130 142,283 41,737 100,546 Benefit payments, included refunds of employee contributions (690,829) (620,318) (57,557) (508,719) Implicit Subsidy Credit (157,130) (142,283) (41,737) (100,546) Administrative expense (24,347) (8,541) (17) (5,300) Net change in plan fiduciary net position 974,441 1,315,604 43,585 1,138,888 Plan fiduciary net position - beginning of year 4,108,250 2,792,646 2,749,061 1,610,173 Plan fiduciary net position - end of year 5,082,691 4,108,250 2,792,646 2,749,061 Town's net OPEB liability - end of year 11,202,420$ 12,704,842$ 12,868,954$ 13,892,928$ Plan fiduciary net position as a percentage of the total OPEB liability 31.21% 24.43% 17.83% 16.52%
Covered-employee payroll 3,233,237$ 6,600,414$ 6,423,761$ 4,068,515$ Net OPEB liability as a percentage of covered-employee payroll 346.48% 192.49% 200.33% 341.47%
The schedules present information to illustrate changes in the Town of Colma's changes in the net OPEB liability over a ten year period when the information is available.

Town of Colma

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF CHANGE IN THE NET OPEB LIABILITY AND RELATED RATIOS For the Year Ended June 30, 2021
- 67 -
2021 2020 2019 2018
Actuarially determined contribution 1,657,517$ 1,869,678$ -$ 1,636,641$ Contributions in relation to the actuarially determined contribution (1,632,395) (1,841,003) (115,823) (1,636,641) Contribution deficiency (excess) 25,122$ 28,675$ (115,823)$ -$ Covered payroll 3,233,237$ 6,600,414$ 6,423,761$ 4,068,515$ Contributions as a percentage of covered payroll 50.49% 27.89% 1.80% 40.23% Notes to Schedule:

Assumptions and Methods
Actuarial cost method Entry age normal, level percent of pay Amortization method Closed period, level percent of pay Amortization period 20 years
Inflation 2.50%
Assumed Rate of Payroll Growth 2.75%
Healthcare trend rates 7.00%, trending down to 4.04%
Rate of return on assets 5.74%
Mortality rate CalPERS rates
Retirement rates CalPERS rates
The schedules present information to illustrate changes in the Town of Colma's contributions over a ten year period when the information is available.

Town of Colma

REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF TOWN OF COLMA'S CONTRIBUTIONS - OPEB
For the Year Ended June 30, 2021
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- 69 -
Supplementary Information

Annual Comprehensive Financial Report
June 30, 2021

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Annual Comprehensive Financial Report
June 30, 2021

Total
Housing Local law Nonmajor
Impact Public Safety Enforcement Debt Governmental
Gas Tax Measure A Fee Measure W Grants Grants Service Funds ASSETS
Cash and investments 78,523$ 74,973$ 278,563$ 55,124$ 6,315$ 78,761$ -$ 572,259$ Receivables from other governments 5,841 5,403 - 6,247 - - - 17,491 Total assets 84,364$ 80,376$ 278,563$ 61,371$ 6,315$ 78,761$ -$ 589,750$

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable 749$ -$ -$ -$ -$ 173$ -$ 922$ Due to other funds - - - - - - 806 806 Total liabilities 749 - - - - 173 806 1,728 Fund balances:

Restricted 83,615 80,376 278,563 61,371 6,315 78,588 - 588,828 Unassigned - - - - - - (806) (806) Total fund balances 83,615 80,376 278,563 61,371 6,315 78,588 (806) 588,022 Total liabilities and fund balances 84,364$ 80,376$ 278,563$ 61,371$ 6,315$ 78,761$ -$ 589,750$ Special Revenue Funds
Town of Colma

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2021
- 71 -
Total
Housing Local Law Nonmajor
Impact Public Safety Enforcement Debt Governmental
Gas tax Measure A Fee Measure W Grants Grant Fund Service Funds Revenues:

Intergovernmental 75,641$ 65,884$ -$ 30,769$ -$ 156,727$ -$ 329,021$ Use of money and property 1,106 2,833 2,321 343 - 819 5 7,427 Other revenues - - - - - - - - Total revenues 76,747 68,717 2,321 31,112 - 157,546 5 336,448 Expenditures:

Current:

General government - - - - - - 3,350 3,350 Public safety - - - - 550 203,734 - 204,284 Public works 17,133 - - - - - - 17,133 Debt service:

Principal - - - - - - 120,000 120,000 Interest - - - - - - 174,369 174,369 Total expenditures 17,133 - - - 550 203,734 297,719 519,136 Excess (deficiency) of revenues over
expenditures 59,614 68,717 2,321 31,112 (550) (46,188) (297,714) (182,688) Other financing sources (uses):

Transfers in - - - - - - 295,612 295,612 Transfers out (87,000) (320,000) - - - - - (407,000) Total other financing sources (uses) (87,000) (320,000) - - - - 295,612 (111,388) Net change in fund balances (27,386) (251,283) 2,321 31,112 (550) (46,188) (2,102) (294,076) Fund balances, July 1 111,001 331,659 276,242 30,259 6,865 124,776 1,296 882,098 Fund balances (deficit), June 30 83,615$ 80,376$ 278,563$ 61,371$ 6,315$ 78,588$ (806)$ 588,022$ Special Revenue Funds
Town of Colma

COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND

NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2021

CHANGES IN FUND BALANCES
- 72 -
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues
Intergovernmental 67,915$ 75,641$ 7,726$ 68,045$ 65,884$ (2,161)$ Use of money and property - 1,106 1,106 - 2,833 2,833 Total revenues 67,915 76,747 8,832 68,045 68,717 672 Expenditures
Current:

General government - - - - - - Public works 14,340 17,133 (2,793) - - - Total expenditures 14,340 17,133 (2,793) - - - Excess (deficiency) 53,575 59,614 6,039 68,045 68,717 672 Other financing sources (uses)
Transfers out (87,000) (87,000) - (320,000) (320,000) - Total other financing sources (uses) (87,000) (87,000) - (320,000) (320,000) - Change in fund balance (33,425) (27,386) 6,039 (251,955) (251,283) 672 Fund balance, July 1 111,001 111,001 - 331,659 331,659 - Fund balance, June 30 77,576$ 83,615$ 6,039$ 79,704$ 80,376$ 672$

NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2021
Gas Tax Measure A
Special Revenues Funds
Town of Colma

COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
- 73 -
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues
Intergovernmental -$ -$ -$ 31,902$ 30,769$ (1,133)$ Use of money and property - 2,321 2,321 - 343 343 Total revenues - 2,321 2,321 31,902 31,112 (790) Excess (deficiency) - 2,321 2,321 31,902 31,112 (790) Fund balance, July 1 276,242 276,242 - 30,259 30,259 - Fund balance, June 30 276,242$ 278,563$ 2,321$ 62,161$ 61,371$ (790)$ Housing Impact Fee Measure W
Special Revenues Funds
Town of Colma

COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2021
- 74 -
Variance Variance
Positive Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues
Intergovernmental -$ -$ -$ 100,000$ 156,727$ 56,727$ Use of money and property - - - - 819 819 Total revenues - - - 100,000 157,546 57,546 Expenditures
Current:

General government - - - - - - Public safety 275 550 (275) 208,408 203,734 4,674 Total expenditures 275 550 (275) 208,408 203,734 4,674 Excess (deficiency) (275) (550) (275) (108,408) (46,188) 62,220 Fund balance, July 1 6,865 6,865 - 124,776 124,776 - Fund balance, June 30 6,590$ 6,315$ (275)$ 16,368$ 78,588$ 62,220$ Special Revenues Funds
Police Safety Grant Local Law Enforcement Grant Fund
Town of Colma

COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2021
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- 76 -

This Page Left Intentionally Blank

Annual Comprehensive Financial Report
June 30, 2021

- 77 -
Statistical Section

Annual Comprehensive Financial Report
June 30, 2021

TOWN OF COLMA

NET POSITION BY COMPONENT

LAST TEN FISCAL YEARS
(Accrual Basis of Accounting)
2012 2013 2014 2015
Governmental activities:

Invested in capital assets,
net of related debt 32,290,889$ 31,939,040$ 44,599,385$ 46,404,513$ Restricted 959,750 958,050 0 0
Unrestricted 30,931,462 31,280,801 20,760,067 15,999,908 Total governmental activities
net position 64,182,101$ 64,177,891$ 65,359,452$ 62,404,421$ Business-type activities:

Invested in capital assets,
net of related debt 0$ 0$ 0$ 0$
Restricted 0 0 0 0
Unrestricted 0 0 0 0
Total business-type activities
net position 0$ 0$ 0$ 0$
Primary government:

Invested in capital assets,
net of related debt 20,933,423$ 22,398,018$ 25,161,698$ 27,586,964$ Restricted 1,102,922 651,518 3,935,816 3,175,336
Unrestricted 9,674,728 12,464,814 11,133,395 10,451,059 Total net position 31,711,073$ 35,514,350$ 40,230,909$ 41,213,359$ Source: Audited Financial Statements
- 78 -
2016 2017 2018 2019 2020 2021
46,657,014$ 43,276,758$ 50,892,687$ 53,214,320$ 53,465,830$ 53,730,885$ 0 0 0 0 6,540,968 8,232,580
17,650,250 24,533,197 12,890,420 9,642,870 8,964,947 10,193,021 64,307,264$ 67,809,955$ 63,783,107$ 62,857,190$ 68,971,745$ 72,156,486$ 0$ 0$ 0$ 2,423,416$ 2,421,545$ 2,335,896$ 0 0 0 0 0 0
0 0 0 102,214 143,283 237,526
0$ 0$ 0$ 2,525,630$ 2,564,828$ 2,573,422$ 28,790,829$ 30,133,560$ 30,966,750$ 30,310,313$ 55,887,375$ 56,066,781$ 960,737 1,507,673 1,787,750 1,520,545 6,540,968 8,232,580 10,511,200 7,498,462 7,576,655 10,199,953 9,108,230 10,430,547 40,262,766$ 39,139,695$ 40,331,155$ 42,030,811$ 71,536,573$ 74,729,908$ - 79 -

TOWN OF COLMA

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(Accrual Basis of Accounting)
2012 2013 2014 2015 2016 2017
Expenses:

Governmental activities*:

General government 3,132,552$ 3,346,125$ 2,967,299$ 3,903,936$ 3,187,043$ 2,821,469$ Public safety 5,944,039 6,913,654 6,257,453 2,832,021 7,027,124 5,693,256 Public works 2,990,162 3,047,313 3,915,614 4,285,679 4,216,784 4,519,003 Recreation & parks 1,061,289 1,058,521 908,687 946,869 968,178 1,066,457 Planning 464,616 573,399 417,626 410,942 512,090 470,802 Interest on long-term debts 587,357 575,585 483,814 0 114,087 185,669 Total governmental activities expenses 13,592,658 15,514,597 14,950,493 12,379,447 16,025,306 14,756,656 Business-type activities:

Sewer 0 0 0 0 0 0
Town Properties 0 0 0 0 0 0
Total business-type activities expenses 0 0 0 0 0 0
Total primary government expenses 13,592,658 15,514,597 14,950,493 12,379,447 16,025,306 14,756,656 Program revenues:

Governmental activities:

Charges for services:

General government 0 0 20,175 0 0 0
Public safety 83,732 67,536 102,641 106,935 68,225 250,905 Public works 385,942 421,062 709,810 826,619 500,000 290,067 Recreation & parks 61,940 82,825 71,176 78,592 524,317 580,133 Planning 385,942 421,063 100,113 109,561 281,687 476,222 Operating contributions and grants 0 0 0 138,809 282,497 156,775 Capital contributions and grants 2,037,958 2,314,303 479,793 0 0 169,204 Total governmental activities program revenues 2,955,514 3,306,789 1,483,708 1,260,516 1,656,726 1,923,306 Business-type activities*:

Charges for services:

Sewer 0 0 0 0 0 0
Town Properties 0 0 0 0 0 0
Operating contributions and grants 0 0 0 0 0 0
Capital contributions and grants 0 0 0 0 0 0
Total business-type activities program revenues 0 0 0 0 0 0 Total primary government program revenues 2,955,514 3,306,789 1,483,708 1,260,516 1,656,726 1,923,306 Net revenues (expenses)
Government activities (10,637,144) (12,207,808) (13,466,785) (11,118,931) (14,368,580) (12,833,350) Business-type activities * 0 0 0 0 0 0
Total net revenues (expenses) (10,637,144) (12,207,808) (13,466,785) (11,118,931) (14,368,580) (12,833,350) General revenues and other changes in net position:

Governmental revenues:

Taxes
Property taxes 334,320 354,574 617,618 472,157 617,172 578,560 Sales taxes 5,045,150 5,517,652 6,232,713 6,843,923 10,851,063 11,202,349 Cardroom taxes 5,091,032 4,957,234 4,703,462 4,140,070 4,039,518 4,290,660 Motor vehicle in-lieu, unrestricted 0 0 0 0 0 0
Other taxes and fees 56,455 74,736 105,257 2,454,113 115,585 223,883 Use of money/property and interest earnings 476,595 496,197 503,140 615,754 473,432 247,803 Other revenues 63,213 70,307 41,408 122,329 174,653 242,786 Transfers 0 0 0 0 0 0
Total governmental activities 11,066,765 11,470,700 12,203,598 14,648,346 16,271,423 16,786,041 Business-type activities*:

Use of money and property 0 0 0 0 0 0
Other revenues 0 0 0 0 0 0
Transfers 0 0 0 0 0 0
Total business-type activities 0 0 0 0 0 0
Total primary government 11,066,765 11,470,700 12,203,598 14,648,346 16,271,423 16,786,041 Changes in net position
Governmental activities 429,621 (737,108) (1,263,187) 3,529,415 1,902,843 3,952,691 Business-type activities * 0 0 0 0 0 0
Total primary government 429,621$ (737,108)$ (1,263,187)$ 3,529,415$ 1,902,843$ 3,952,691$ * Town Council approved the creation of two business-type activities in October 2018.

Source: Audited Financial Statements
- 80 -
2018 2019 2020 2021
3,158,045$ 4,735,196$ 3,803,188$ 4,424,559$ 7,877,748 7,711,938 7,173,372 8,305,409 4,256,204 5,673,752 3,044,965 4,183,431 1,210,189 1,250,971 1,021,257 879,315 443,700 315,743 414,973 74,881 183,469 181,268 178,969 174,369 17,129,355 19,868,868 15,636,724 18,041,964 0 932,502 948,619 1,044,830
0 161,814 158,516 159,323
0 1,094,316 1,107,135 1,204,153
17,129,355 20,963,184 16,743,859 19,246,117 0 0 0 0
97,848 25,417 122,934 114,569 1,194,533 167,165 172,061 259,022 142,078 83,662 58,396 22,797 264,422 115,036 117,317 103,262 230,352 237,521 238,989 719,770 283,634 442,309 256,757 1,158,693 2,212,867 1,071,110 966,454 2,378,113 0 824,239 850,366 987,697
0 193,308 190,931 192,722
0 0 0 0
0 2,416,096 0 0
0 3,433,643 1,041,297 1,180,419
2,212,867 4,504,753 2,007,751 3,558,532 (14,916,488) (18,797,758) (14,670,270) (15,663,851) 0 2,339,327 (65,838) (23,734)
(14,916,488) (16,458,431) (14,736,108) (15,687,585) 601,116 640,080 680,615 622,787 11,397,118 12,066,527 10,520,000 13,620,617 4,352,743 4,520,957 3,319,059 2,213,814 0 0 0
134,789 131,862 140,997 141,021 416,023 679,643 942,128 1,231,305 113,922 (167,224) 115,716 1,049,962 0 (185,480) (98,253) (30,914)
17,015,711 17,686,365 15,620,262 18,848,592 0 823 6,782 1,413
0 0 0
0 185,480 98,253 30,914
0 186,303 105,035 32,327
17,015,711 17,872,668 15,725,297 18,880,919 2,099,223 (1,111,393) 949,992 3,184,741 0 2,525,630 39,197 8,593
2,099,223$ 1,414,237$ 989,189$ 3,193,334$ - 81 -

TOWN OF COLMA

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting)
2012 2013 2014 2015
General Fund
Nonspendable -$ 0$ 0$ 0$
Reserved 103,788 98,956 0 0
Restricted - Pension & OPEB 0 0 0 0
Committed 0 24,552,790 20,100,000 13,576,000
Assigned 6,464,640 10,319,919 6,417,979 950,000 Unassigned 27,462,519 950,000 950,000 13,591,913 Total General Fund 5,788,511$ 4,564,602$ 5,223,779$ 5,410,511$ All other governmental funds
Restricted 959,750$ 958,050$ 0$ 0$
Committed 120,291 203,792 79,249 71,557 Assigned 0 0 0
Unassigned 0 0 0 (47,219)
Total all other
governmental funds 1,897,547$ 4,633,079$ 3,441,870$ 1,820,403$ Source: Audited Financial Statements
- 82 -
2016 2017 2018 2019 2020 2021
0$ 0$ 0$ 0$ 0$ 116,242$
0 0 0 0 0 0
0 0 0 0 6,540,968 7,643,752
14,287,000 14,287,000 15,542,000 13,250,000 13,315,000 13,031,341 950,000 950,000 950,000 950,000 950,000 950,000 7,357,248 6,310,836 7,965,214 10,982,278 9,568,432 13,304,657 5,777,882$ 3,303,979$ 3,276,433$ 5,705,162$ 30,374,400$ 35,045,992$ 4,343,192$ 1,729,570$ 0$ 0$ 0$ 588,828$
8,980,111 13,839,459 8,399,613 3,721,232 4,499,197 0 0 0 0 0 0 2,426,272
0 0 (11,269) 0 0 (806)
1,311,759$ 1,398,517$ 2,142,245$ 2,039,169$ 4,499,197$ 3,014,294$ - 83 -

TOWN OF COLMA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(Modified Accrual Basis of Accounting)
2012 2013 2014 2015 2016 2017
Revenues:

Property taxes 354,574$ 617,618$ 472,157$ 554,778$ 617,172$ 578,560$ Sales taxes 5,517,652 6,232,713 6,843,923 10,327,853 10,851,063 11,202,349 Cardroom taxes 4,957,234 4,703,462 4,140,070 3,774,885 4,039,518 4,290,660 Other taxes 74,736 105,257 2,454,113 138,463 115,585 136,895 Licenses and permits 83,862 114,546 100,113 109,724 281,687 372,321 Fines and forfeits 83,732 67,536 66,611 65,785 68,225 64,740 Intergovernmental 2,037,958 2,314,303 479,793 407,960 282,497 412,967 Use of money and property 496,197 503,140 615,754 427,801 473,432 247,803 Other revenues 70,307 41,408 122,329 148,351 222,156 242,786 Charges for services 749,962 810,404 837,191 946,198 1,024,317 1,160,266 Total revenues 14,426,214 15,510,387 16,132,054 16,901,798 17,975,652 18,709,347 Expenditures
Current:

General government 2,936,363 2,921,076 2,967,299 3,903,936 3,194,543 2,821,469 Public safety 4,822,180 5,445,546 5,397,761 4,961,165 5,748,812 6,280,151 Public works 2,866,880 2,936,622 3,299,749 6,083,862 4,730,141 6,575,487 Recreation 883,961 880,931 908,687 946,869 973,178 1,066,457 Planning 287,288 395,809 417,626 410,942 512,090 470,802 Debt service:

Principal 375,000 385,000 12,100,000 0 180,000 110,000 Interest 584,509 572,884 577,209 0 114,087 185,669 Total expenditures 12,756,181 13,537,868 25,668,331 16,306,774 15,452,851 17,510,035 Excess (deficiency) of revenues
over (under) expenditures 1,670,033 1,972,519 (9,536,277) 595,024 2,522,801 1,199,312 Other financing sources (uses)
Transfers in 1,140,692 1,230,450 12,246,681 0 9,833,630 5,848,997 Transfers out (1,140,692) (1,230,450) (12,246,681) 0 (9,833,630) (5,848,997) Issuance of long-term debt 0 0 0 0 5,252,497 0
Other financing sources (uses) 0 0 0 0 5,252,497 0
Net change in fund balances 292,254$ 1,884,758$ (229,980)$ (1,026,026)$ (738,208)$ (2,646,160)$ Debt service as a percentage of
noncapital expenditures 3.9% 4.0% 3.7% 3.3% 3.5% 23.1%
Source: Audited Financial Statements
- 84 -
2018 2019 2020 2021
601,116$ 640,080$ 680,615$ 622,787$
11,397,118 12,066,527 10,520,000 13,620,617
4,352,743 4,520,957 3,319,059 2,213,814
127,789 131,862 140,997 141,021 278,046 123,626 275,241 348,147 73,907 103,519 105,387 108,484 432,281 594,307 495,745 1,878,463 416,023 668,061 905,349 1,225,134 392,804 59,808 111,160 1,049,962 1,156,751 123,216 90,080 43,019 19,228,578 19,031,963 16,643,633 21,251,448
3,158,045 4,735,196 3,782,765 3,935,005
7,214,813 8,422,400 7,164,037 8,180,795
11,312,133 7,766,952 3,050,446 4,851,515
1,108,920 1,250,971 1,033,665 652,133
443,700 315,743 414,973 295,710 110,000 115,000 115,000 120,000 183,469 181,268 178,969 174,369 23,531,080 22,787,530 15,739,855 18,209,527
(4,302,502) (3,755,567) 903,778 3,041,921
1,215,893 3,332,131 1,612,830 1,472,612
(1,215,893) (3,517,611) (1,711,083) (1,503,526) 0 0 0 0
0 (185,480) (98,253) (30,914)
14,479$ 2,325,654$ 805,525$ 3,011,007$

0.3% 0.3% 1.9% 1.6%
- 85 -
Fiscal year Taxable Total % change Property tax
ended Less assessed direct tax in assessed revenue per
June 30 Secured roll Unsecured roll exemptions value rate value fin stmt 2012 497,097,100$ 34,175,946$ 542,325$ 531,815,371$ 0.078% 0.52% 354,574$ 2013 520,782,477 36,007,528 542,325 557,332,330 0.077% 4.80% 617,618 2014 534,119,184 36,578,906 542,325 571,240,415 0.072% 2.50% 472,157 2015 577,284,551 36,807,516 542,325 614,634,392 0.069% 7.60% 554,778 2016 583,049,863 38,607,884 723,100 622,380,847 0.072% 1.26% 617,172 2017 600,830,262 34,339,922 723,100 635,893,284 0.074% 2.17% 578,560 2018 618,149,159 32,961,152 723,100 651,833,411 0.078% 2.51% 601,116 2019 643,021,845 33,927,523 723,100 677,672,468 0.079% 3.96% 640,080 2020 681,306,233 31,900,343 903,875 714,110,451 0.095% 5.38% 680,615 2021 722,641,283 35,183,210 903,875 758,728,368 0.082% 6.25% 622,787 The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of non more than two percent annually, plus any local over-rides. These values are considered to be full market values.
(b) California cities do not set their own direct tax rate. The State Constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area.

The Town of Colma has seven tax rate areas.
(a) Assessed values presented are net of exemptions.

TOWN OF COLMA

ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
- 86 -
TOWN OF COLMA
COMPUTATION OF DIRECT AND OVERLAPPING PROPERTY TAX RATES LAST TEN FISCAL YEARS
Fiscal Year Basic Levy 1
Jefferson
Elementary
Jefferson High
Bond
San Mateo
Community College
2005 Series B
San Mateo Junior
College
South San Francisco
Unified
Total Direct &
Overlapping Tax
Rates
Town's Share of 1%
Basic Levy
2012 1.00000 0.04070 0.04220 0.00000 0.01990 0.02210 1.12490 0.09297 2013 1.00000 0.03160 0.04300 0.00000 0.01940 0.03270 1.12670 0.09297 2014 1.00000 0.07130 0.05740 0.00000 0.01940 0.03280 1.18090 0.09297 2015 1.00000 0.06620 0.05300 0.00000 0.01900 0.05130 1.18950 0.09297 2016 1.00000 0.06740 0.05830 0.00000 0.02500 0.04570 1.19640 0.09297 2017 1.00000 0.06800 0.08000 0.00000 0.02470 0.04670 1.21940 0.09297 2018 1.00000 0.06630 0.08160 0.00000 0.02350 0.03660 1.20800 0.09297 2019

1.00000                  0.05630                  0.07390                  0.00000                  0.01750                  0.04220                  1.18990                  0.09297 2020 1.00000                  0.06670                  0.08110                  0.00350                  0.02310                  0.03810                  1.21250                  0.09297 2021 1.00000                  0.06670                  0.09420                  0.00370                  0.01760                  0.03500                  1.21720                  0.09297 Source: San Mateo County Assessor's 2011‐12 Through 2020‐21 Tax Rate Table Agency
- 87 -
TOWN OF COLMA
PRINCIPAL TAXPAYERS
CURRENT YEAR AND TEN YEARS AGO
2021 2012
Percentage Percentage
of net of net
Assessed assessed Assessed assessed
Taxpayer Type of property value valuation value valuation 280 Metro LP Commercial 114,147,881$     15.04% 65,882,223$       0.12388176 Cole HD Colma California LP Commercial 43,284,836 5.70% 36,949,024 6.95% Robert F Whittey Trust Et Al Recreational 34,362,882 4.53% ‐ ‐ Extra Space Pr
operties Forty LLC Industrial 26,744,038 3.52% 22,788,844 4.29% Kohl's Department Stores Inc Commercial 25,308,764 3.34% 18,118,599 3.41% Realty Income Trust Commercial 22,797,000 3.00% ‐ ‐
Gr
egory Gordon Price Et Al Commercial 22,130,315 2.92% ‐ ‐ BMVT Mo
tors Inc Commercial 21,485,197 2.83% ‐ ‐
Day
ton ‐ Hudson Corporation Commercial 21,378,671 2.82% ‐ ‐ Best Buy Store s LP Commercial 20,946,055 2.76% 18,047,689 3.39% Estate of George R Karadanis Recreational ‐ ‐ 29,
333,021 5.52%
Thomas A Price Lessee Commercial ‐ ‐ 19,
241,145 3.62%
Target Corporation Commercial ‐ ‐ 18,
751,303 3.53%
Home Depot USA Inc Commercial ‐ ‐ 17,
248,883 3.24%
Verducci Enterprises LP Commercial ‐ ‐ 14,
517,579 2.73%
Top Ten Total 352,585,639$     46.47% 99,091,931$       18.63% Town Total 758,728,368$     531,815,371$
Source:  San Mateo County Assessor 2011/12 and 2020/21 Combined Tax Rolls and the SBE Non Un itary Tax Roll - 88 -

PROPERTY TAX LEVIES AND COLLECTIONS
Value of
Collections property
Fiscal
Year Tax Levy % of Chg Amount % of Levy
Subsequent
Year (3) Amount % of Levy
subject to
local tax rate
2012 334,320$ -9% 334,320$ 100% 334,320$ 100% 531,815,371$ 2013 354,574 6% 354,574 100% 354,574 100% 557,332,330
2014 617,618 74% 617,618 100% 617,618 100% 571,240,415
2015 472,157 -24% 472,157 100% 472,157 100% 614,634,392 2016 617,172 31% 617,172 100% 617,172 100% 622,380,847
2017 578,560 -6% 578,560 100% 578,560 100% 635,893,284
2018 601,116 4% 601,116 100% 601,116 100% 651,833,411
2019 640,080 6% 640,080 100% 640,080 100% 677,672,468
2020 680,615 6% 680,615 100% 680,615 100% 714,110,451
2021 622,787 -8% 622,787 100% 622,787 100% 758,728,368
The County of San Mateo levies, bills, and collects property taxes for the Town. Under the Teeter Bill, the County remits the entire amount levied and handles the delinquencies, retaining interest and penalties.

Sources: San Mateo County Assessor Office 2020-2021 Combined Tax Rolls Town of Colma financial reports

TOWN OF COLMA

LAST TEN FISCAL YEARS
Collected within FY Total Collections to Date
- 89 -

TOWN OF COLMA

RATIOS OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
Total governmental Debt
Fiscal Police Station Town Hall activities and per
Year COP COP primary government capita Population
2012 375,000$ -$ 375,000$ 210 1,789 2013 385,000 - 385,000 264 1,458
2014 12,100,000 - 12,100,000 8,231 1,470
2015 - - - - 1,471
2016 - 180,000 180,000 119 1,509
2017 - 110,000 110,000 73 1,506
2018 - 110,000 110,000 73 1,501
2019 - 115,000 115,000 76 1,512
2020 - 115,000 115,000 67 1,729
2021 - 120,000 120,000 72 1,659
Prior to fiscal year 2005, the Town had no debt. Details regarding the Town's outstanding debt can be found in Note #5 to financial statements.

The Town entered into a lease agreement in the amount of $2,000,000 in September, 2004 to finance the new Town Hall project. In Fiscal Year 2011-12, Town paid-off outstanding loan amount of $1363,047.

The Town received a loan in the amount of $160,000 during fiscal year 2006 to provide funding for energy conservation features of the new building. In fiscal year 2010-11, Town received additional loan in the amount of $47,000 for another energy efficiency project. During Fiscal Year 2015-16 , the Town paid off the loan balance.

Source: Debt Data - Town of COLMA Financial Statements
Population: California Department of Finance
- 90 -

TOWN OF COLMA

DIRECT AND OVERLAPPING DEBT
FOR THE YEAR ENDED JUNE 30, 2021

TOWN OF COLMA
2020-21 Assessed Valuation: $758,728,368
Total Debt Town’s Share of
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2021 % Applicable (1) Debt 6/30/21 San Mateo County $792,585,000 1.716% $13,600,759
Foothill-DeAnza Community College District 584,782,455 4.998 29,227,427 Palo Alto Unified School District 306,673,766 7.210 22,111,179 Mountain View-Los Altos Union High School District 59,156,005 10.644 6,296,565 Los Altos School District 73,555,000 21.983 16,169,596
El Camino Hospital District 136,280,000 8.889 12,113,929 Midpeninsula Regional Open Space District 45,000,000 2.952 1,328,400 Santa Clara Valley Water District Benefit Assessment District 99,060,000 1.716 1,699,870 Town of COLMA 0 100. 0
Town of COLMA 1915 Act Bonds 1,795,000 100. 1,795,000
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $104,342,725 OVERLAPPING GENERAL FUND DEBT:

Santa Clara County General Fund Obligations $677,526,121 1.716% $11,626,348 Santa Clara County Pension Obligation Bonds 367,118,349 1.716 6,299,751 Santa Clara County Board of Education Certificates of Participation 6,380,000 1.716 109,481 Foothill-DeAnza Community College District Certificates of Participation 9,723,341 4.998 485,973 Mountain View-Los Altos Union High School District Certificates of Participation 2,415,000 10.644 257,053 Santa Clara County Vector Control District Certificates of Participation 2,890,000 1.716 49,592 Midpeninsula Regional Park District General Fund Obligations 122,305,886 2.952 3,610,470 TOTAL OVERLAPPING GENERAL FUND DEBT $22,438,668
TOTAL DIRECT DEBT $0
TOTAL OVERLAPPING DEBT $126,781,393
COMBINED TOTAL DEBT $126,781,393 (2)
(1) The percentage of overlapping debt applicable to the Town 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 Town divided by the district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Ratios to 2015-16 Assessed Valuation:

Direct Debt 0.00%
Total Direct and Overlapping Tax and Assessment Debt 1.57% Combined Total Debt 1.90%
Source: California Municipal Statistics
- 91 -

TOWN OF COLMA

LEGAL DEBT MARGIN INFORMATION

LAST TEN FISCAL YEARS
Fiscal years Total Bonded debt Amount of
ended assessed limit - 15% of debt subject Legal
June 30 valuation assessed valuation to limit debt margin 2011 529,074,879$ 79,361,232$ -$ 79,361,232$
2012 531,815,371 79,772,306 - 79,772,306
2013 557,332,330 83,599,850 - 83,599,850
2014 571,240,415 85,686,062 - 85,686,062
2015 614,634,392 92,195,159 - 92,195,159
2016 622,380,847 93,357,127 - 93,357,127
2017 635,893,284 95,383,993 - 95,383,993
2018 651,833,411 97,775,012 - 97,775,012
2019 677,672,468 101,650,870 - 101,650,870
2020 714,110,451 107,116,568 - 107,116,568
2021 758,728,368 113,809,255 - 113,809,255
The Government Code of the State of California limits the amount of general bonded indebtedness for public improvements to 15% of the assessed valuation of all real and personal property of the Town.

The Town of Colma has no general bonded indebtedness.

Source: San Mateo County Assessor 2020-21 Combined Tax Rolls - 92 -

TOWN OF COLMA

DEMOGRAPHICS AND ECONOMIC STATISTICS

LAST TEN YEARS
Personal Per Capita % of Pop 25+ with % of Pop 25+ with Town Income Personal Unemployment High School Bachelor's Year Population (in thousand) Income Rate Median Age Degree Degree 2011 1,637 36,937$ 22,564$
2012 1,789 45,492 25,429 9.7% 33.6 87.7% 32.8% 2013 1,458 53,392 36,620 6.3% 30.7 87.9% 30.2% 2014 1,470 53,218 36,203 5.2% 32.1 82.9% 29.5% 2015 1,471 54,449 37,015 4.5% 31.6 84.6% 33.7% 2016 1,509 55,581 36,832 3.6% 30.3 86.3% 35.6% 2017 1,506 49,093 32,598 3.2% 32.2 84.6% 30.9% 2018 1,501 57,369 38,220 3.2% 33.0 89.0% 32.3% 2019 1,512 56,218 37,181 2.3% 36.6 91.0% 28.1% 2020 1,729 58,803 34,009 2.3% 36.0 89.9% 26.8% 2021 1,659 58,079 35,008 8.9% 38.8 86.6% 26.8% Sources:

Population: California State Department of Finance. Unemployment Data: California Employment Development Department 2000-2009 Income, Age, Education Data: ESRI - Demographics Estimates are based on the last available Census. 2010 and later - Income, Age, and Education Data - US Census Bureau, most recent American Community Survey - 93 -

TOWN OF COLMA
PRINCIPAL EMPLOYERS - In Alphabetical Order

CURRENT YEAR
Employer 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Best Buy 155 0 100 139 126 110 110 110 91 92
Car Max 0 0 0 0 0 0 0 0 75 68
Cypress Lawn 68 68 72 114 164 118 118 118 121 153
Home Depot 204 201 193 203 205 187 187 187 193 241
Home Depot Pro 172 152 160 156 184 177 177 177 186 200
Honda of Serramonte 75 77 77 89 86 97 97 102 103 94
Kohl's 158 112 112 112 112 112 112 112 112 112
Lexus of Serramonte 80 90 90 100 100 103 103 103 105 79 Lucky Chances 638 611 616 601 585 544 544 573 588 199
Nordstrom, Inc 67 69 75 0 98 73 73 0 0 0
Serramonte Ford 125 151 153 153 175 175 175 170 150 122 Steward Chevrolet 63 99 96 105 105 104 104 104 104 102
Target 380 416 499 427 355 337 337 337 392 334
Totals 2,185 2,046 2,243 2,199 2,295 2,137 2,137 2,093 2,220 1,796 Source: Colma Business License
- 94 -

TOWN OF COLMA

FULL TIME EQUIVALENT TOWN GOVERNMENT EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General Government 5.25 5.25 5.25 5.30 6.05 4.75 6.10 7.25 7.95 8.08 Public safety 23.75 24.00 24.00 25.20 25.20 25.20 25.20 25.90 25.90 25.90 Public Works and Planning 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Recreation 10.00 10.00 10.00 10.50 10.50 11.25 10.00 10.50 10.50 9.50

42.00 42.25 42.25 44.00 44.75 44.20 44.30 46.65 47.35 46.48 Source: Town of Colma Personnel Records
- 95 -

TOWN OF COLMA

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Police
Business Checks * * * 1,595 988 818 713 725 288 1,284 Calls for Service * * * 4,406 4,326 4,870 5,491 5,000 4,224 6,012 Community Events * * * 75 74 96 119 100 80 72 Gang Task Force Hours * * * 540 510 528 357 540 530 540 Parking citation * * * * * 1,805 2,229 1,748 1,992 2,796 Planning
Plans check 36 23 37 38 54 72 54 50 47 47 Permits Issued 12 25 28 12 15 20 46 24 22 20 Recreation classes and activities offered
Picnic rentals 188 189 193 213 216 238 237 237 192 16 Recreation programs 99 102 98 131 121 125 130 134 137 64 Program Participation 4,808 4,566 5,094 5,356 5,757 5,600 5,874 5,900 6,000 5,621 * Historical data is not available
Source: Town of Colma
- 96 -

TOWN OF COLMA

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Other Town Properties
Number of police station 0 0 0 1 1 1 1 1 1 1 Number of Building at Town Hall 2 2 2 2 2 2 1 1 1 1 Number of Corporation Yard 1 1 1 1 1 1 1 1 1 1 Number of Colma Museum 1 1 1 1 1 1 1 1 1 1 Leisure and Culture
Number of recreation center facilities 2 2 2 2 2 2 2 2 2 2 Number of parks 2 2 2 2 2 2 2 2 2 2 Number of senior housing 18 18 18 18 18 18 18 18 18 18 Drainage and Street Operations
Miles of streets 12 12 12 12 12 12 12 12 12 12 Average Pavement Condition Index Scores * 73 78 83 84 83 80 79 79 79 Sewer Operations
Miles of sanitary sewer 32 32 32 32 32 32 32 32 32 32 Miles of storm sewer 10 10 10 10 10 10 10 10 10 10 * Historical data is not available
Source: Town of COLMA
- 97 -

TOWN OF COLMA

TOWN COUNCIL
&

MANAGEMENT REPORT
For the Year Ended
JUNE 30, 2021
Attachment C

TABLE OF CONTENTS
PAGE
Report on Internal Controls 1
Required Communications 2-3
Management Observations 4
- 1 -
Town Council
Town of Colma
Colma, California
In planning and performing our audit of the basic financial statements of Town of Colma for the fiscal year ended June 30, 2021, in accordance with auditing standards generally accepted in the United States of America, we considered its internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the basic financial statements, but not for the purpose of expressing an opinion on the effectiveness of its internal control. Accordingly, we do not express an opinion on the effectiveness of Town of Colma’s internal control.

A control deficiency 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 misstatements on a timely basis. A significant deficiency is a control deficiency, or a combination of control deficiencies, that adversely affects the entity’s ability to initiate, authorize, record, process or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity’s basic financial statements that is more than inconsequential will not be prevented or detected by the entity’s internal control.

A material weakness is a significant deficiency, or a combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the basic financial statements will not be prevented or detected by the entity’s internal control.

Our consideration of the internal control was for the limited purpose described in the first paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses, as defined above. We did not identify any deficiencies in internal control that we consider material weaknesses, as defined above.

This report is intended solely for the information and use of management and Town Council of Town of Colma and others within the organization, and is not intended to be and should not be used by anyone other than these specified parties.

We thank Town of Colma’s staff for its cooperation during our audit.

R.J. Ricciardi, Inc.

Certified Public Accountants
San Rafael, California
February 1, 2022
1101 FIFTH AVENUE, SUITE 360 SAN RAFAEL, CA 94901 TEL (415) 457-1215 FAX (415) 457-6735 www.rjrcpa.com R. J. RICCIARDI, INC.

CERTIFIED PUBLIC ACCOUNTANTS
- 2 -
Town Council
Town of Colma
Colma, California
We have audited the basic financial statements of Town of Colma for the year ended June 30, 2021. Professional standards require that we provide you with the following information related to our audit.

Our Responsibility under U.S. Generally Accepted Auditing Standards As stated in our engagement letter dated August 13, 2021, our responsibility, as described by professional standards, is to plan and perform our audit to obtain reasonable, but not absolute, assurance that the financial statements are free of material misstatement and are fairly presented in accordance with U.S. generally accepted accounting principles.

Because an audit is designed to provide reasonable, but not absolute assurance and because we did not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us.

As part of our audit, we considered the internal control of Town of Colma. Such considerations were solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by Town of Colma are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year. We noted no transactions entered into by Town of Colma during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. We evaluated the key factors and assumptions used to develop the accounting estimates in determining that it is reasonable in relation to the financial statements taken as a whole. The most sensitive estimates affecting the financial statements were:
 Accrual and disclosure of compensated absences;
 Capital asset lives and depreciation expense;
 Actuarial assumptions for pension and post-employment benefits;  Fair value of investments and financial instruments.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements.
1101 FIFTH AVENUE, SUITE 360 SAN RAFAEL, CA 94901 TEL (415) 457-1215 FAX (415) 457-6735 www.rjrcpa.com R. J. RICCIARDI, INC.

CERTIFIED PUBLIC ACCOUNTANTS
Town Council
Town of Colma – Page 2
- 3 -
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in the management representation letter dated February 1, 2022.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to Town of Colma’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as Town of Colma’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

Other Matters
We applied certain limited procedures to the Management’s Discussion and Analysis and the Budgetary Comparison Schedule for the General Fund, Local Government’s Proportionate Share of Net Pension Liability, and Schedules of Contributions, which are required supplementary information (RSI) that supplements the basic financial statements.

Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on the combining statements and individual fund statements, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

We were not engaged to report on the Introductory Section and the Statistical Section, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance onit.

This report is intended solely for the information and use of management and Town Council of Town of Colma and others within the organization, and is not intended to be, and should not be, used by anyone other than these specified parties.

Town of Colma

MANAGEMENT REPORT
For the Year Ended June 30, 2021
- 4 -
Current Year Observations
There were no current year observations.

Prior Year Observations
There were no prior year observations.

TOWN OF COLMA

MEASURE A FUND
(A nonmajor component unit fund)

FINANCIAL STATEMENTS
JUNE 30, 2021
Attachment D

TABLE OF CONTENTS
PAGE
Independent Auditors’ Report 1-2
Financial Statements:

Balance Sheet 3
Statement of Revenues, Expenditures, and Changes in Fund Balance 4 Notes to Fund Financial Statements 5-6
Report on Compliance Based on an Audit of Financial Statements Performed in Accordance with Auditing Standards Generally Accepted in the United States of America 7
- 1 -
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Members
of the Town Council
Town of Colma
Colma, California
Report on the Financial Statements
We have audited the accompanying financial statements of the Measure A Fund of Town of Colma, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the Measure A Fund’s financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to Town of Colma Measure A Fund’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town of Colma Measure A Fund’s internal control.

Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

As described in Note 1 to the financial statements, the accompanying financial statements present only the Measure A Fund and do not purport to, and do not, present fairly the financial position of Town of Colma, California, as of June 30, 2021, and the changes in its financial position for the year then ended in conformity with U.S. generally accepted accounting principles.
1101 FIFTH AVENUE, SUITE 360 SAN RAFAEL, CA 94901 TEL (415) 457-1215 FAX (415) 457-6735 www.rjrcpa.com R. J. RICCIARDI, INC.

CERTIFIED PUBLIC ACCOUNTANTS
Town Council
Town of Colma – Page 2
- 2 -
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Measure A Fund of Town of Colma, California, as of June 30, 2021, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

R.J. Ricciardi, Inc.

R. J. Ricciardi, Inc.

Certified Public Accountants
San Rafael, California
October 6, 2021
ASSETS
Cash 74,973$
Accounts receivable 5,403
Total assets 80,376$

LIABILITIES AND FUND BALANCE
Liabilities:

Due to other fund -$
Fund balance:

Assigned 80,376
Total liabilities and fund balances 80,376$
Town of Colma
Measure A Fund
June 30, 2021

BALANCE SHEET

GOVERNMENTAL FUND TYPE
The accompanying notes are an integral part of these financial statements. - 3 -
Revenues:
20 percent of 1/2 cent sales tax 65,884$
Use of money and property 2,833
Total revenues 68,717
Expenditures:

Capital outlay -
Total expenditures -
Excess of revenues over expenditures 68,717

OTHER FINANCING SOURCES (USES)
Transfers in -
Transfers out (320,000)
Total other financing sources (uses) (320,000)
Net change in fund balance (251,283)
Fund balance, beginning of period 331,659
Fund balance, end of period 80,376$

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE Town of Colma

GOVERNMENTAL FUND TYPE
For the Fiscal Year Ended June 30, 2021
Measure A Fund
The accompanying notes are an integral part of these financial statements. - 4 -
Town of Colma
Measure A Fund

NOTES TO FUND FINANCIAL STATEMENTS
June 30, 2021
- 5 -
NOTE 1 - REPORTING ENTITY
At the general election on June 7, 1988, the voters of San Mateo County approved Measure A, “An ordinance providing for the creation of the San Mateo County Transportation Authority, for the imposition of a one-half of one percent transactions and use tax, for the issuance of limited tax bonds, and for other purposes.” It also includes an annual allocation of 20 percent of the total revenue generated by the aforementioned ½ percent transactions and use tax to the cities of San Mateo County and to the County of San Mateo for the improvement of local transportation, including streets and roads.

The Measure A Fund (the Fund) is a blended component unit nonmajor fund of Town of Colma.

The accounting policies of the Fund conform to U.S. generally accepted accounting principles as applicable to governments. The accompanying financial statements present financial information for only the Measure A Fund, and not for Town of Colma (the Town) as a whole.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. The operating statement of the fund presents increases and decreases in net current assets.

The modified accrual basis of accounting is used by all governmental fund types. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual, i.e., when they become both measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the related liability is incurred by the Fund.

B. Budgets and Budgetary Accounting
The Town adopted an annual budget for the Fund for the fiscal year ending June 30, 2021. The Town’s budget is prepared on a basis consistent with U.S. generally accepted accounting principles.

All annual appropriations lapse at year end.

The appropriated budget is prepared by fund, function, department and line item. The legal level of budgetary control is the fund level. Any changes to increase total appropriations in a fund require the approval of the Town Council.

NOTE 3 - CASH AND INVESTMENTS
The Town pools various funds’ cash for investment purposes. The Fund’s equity in such pooled assets is shown as “Cash and Investments.” Cash and investments in the accompanying financial statements are carried at fair value.

The Town is authorized by its most recent investment policy to invest in the State of California Local Agency Investment Fund, the San Mateo County Treasurer’s Investment Pool and other permitted investments.

Town of Colma
Measure A Fund

NOTES TO FUND FINANCIAL STATEMENTS
June 30, 2021
- 6 -
NOTE 3 - CASH AND INVESTMENTS (concluded)
Interest earnings, if any, were allocated to the Fund in the 2021 fiscal year based upon the Fund’s average cash balances and the proportionate interest earned by the Town on its pooled investments in the State of California Local Agency Investment Fund (LAIF) and the San Mateo County Treasurer Pool. See the Town’s Basic Financial Statements for the disclosures related to cash and investments and the related custodial risk categorization.

NOTE 4 - CONTINGENCIES
Local Financial Assistance. Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies, principally the San Mateo County Transportation Authority.

Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of costs which may be disallowed by the grantors cannot be determined at this time although the Town expects such amounts, if any, to be immaterial.

Coronavirus Pandemic
In December 2019, an outbreak of a novel strain of coronavirus (COVID-19) began to spread among various countries, including the United States. On March 11, 2020, the World Health Organization characterized COVID-19 as a pandemic. In addition, multiple jurisdictions in the U.S., including California, declared a state of emergency and issued shelter-in-place orders in response to the outbreak. The immediate impact to the Town’s operations included new restrictions on employees’ work location and planning heightened sanitation awareness requirements on office staff. It is anticipated impacts from this pandemic will continue for some time. As of the report date, the financial impact of the coronavirus outbreak cannot be measured NOTE 5 - ASSIGNED FUND BALANCE
The accompanying financial statements reflect certain changes that have been made with respect to the reporting components of fund balances for governmental funds. In previous years, fund balances for governmental funds were reported in accordance with previous standards that included components for reserved fund balance, unreserved fund balance, designated fund balance, and undesignated fund balance. Due to the implementation of GASB Statement No. 54, the components of fund balances of governmental funds now reflect the component classification of assigned fund balance.

Assigned fund balance includes amounts intended to be used by the Town for specific purposes, subject to change, as established either directly by the Town Council or by management officials to whom the assigned authority has been delegated by the Town Council.

NOTE 6 - INTERFUND TRANSFERS
The Measure A Fund transferred $320,000 to the Street Capital Projects Fund during the current fiscal year ended June 30, 2021. The funds were used for the Mission Road Bicycle and Pedestrian Project.

NOTE 7 - SUBSEQUENT EVENTS
The Town’s management has evaluated events and transactions subsequent to June 30, 2021 for potential recognition or disclosure in the financial statements. Subsequent events have been evaluated through the date the financial statements became available to be issued. - 7 -

REPORT ON COMPLIANCE BASED

ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH AUDITING

STANDARDS GENERALLY ACCEPTED IN

THE UNITED STATES OF AMERICA
Honorable Mayor and Members
of the Town Council
Town of Colma
Colma, California
We have audited the Town of Colma’s compliance with the agreement between the Town of Colma and San Mateo County Transportation Authority applicable to the Measure A Fund for the year ended June 30, 2021. Compliance with the requirements referred to above is the responsibility of Town of Colma’s management. Our responsibility is to express an opinion on Town of Colma’s compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; and the agreement between the Town of Colma and San Mateo County Transportation Authority. Those standards and agreement require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above could have a material effect on the Measure A Fund. An audit includes examining, on test basis, evidence about Town of Colma’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of Town of Colma’s compliance with those requirements.

Compliance
As part of obtaining reasonable assurance about whether Town of Colma Measure A Fund’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, including tests of Town of Colma’s compliance with certain provisions of Measure A, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under U.S. generally accepted auditing standards.

This report is intended solely for the information of and use of the Town Council and management of Town of Colma, and the County of San Mateo Transportation Authority, and is not intended to be and should not be used by anyone other than these specified parties.

R.J. Ricciardi, Inc.

R. J. Ricciardi, Inc.

Certified Public Accountants
San Rafael, California
October 6, 2021

1101 FIFTH AVENUE, SUITE 360 SAN RAFAEL, CA 94901 TEL (415) 457-1215 FAX (415) 457-6735 www.rjrcpa.com

R. J. RICCIARDI, INC.

CERTIFIED PUBLIC ACCOUNTANTS

TOWN OF COLMA

MEASURE W FUND
(A nonmajor component unit fund)

FINANCIAL STATEMENTS
JUNE 30, 2021
Attachment E

TABLE OF CONTENTS
PAGE
Independent Auditors’ Report 1-2
Financial Statements:

Balance Sheet 3
Statement of Revenues, Expenditures, and Changes in Fund Balance 4 Notes to Fund Financial Statements 5-6
Report on Compliance Based on an Audit of Financial Statements Performed in Accordance with Auditing Standards Generally Accepted in the United States of America 7
- 1 -
INDEPENDENT AUDITORS’ REPORT
Honorable Mayor and Members
of the Town Council
Town of Colma
Colma, California
Report on the Financial Statements
We have audited the accompanying financial statements of the Measure W Fund of Town of Colma, as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the Measure W Fund’s financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to Town of Colma Measure W Fund’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town of Colma Measure W Fund’s internal control.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

As described in Note 1 to the financial statements, the accompanying financial statements present only the Measure W Fund and do not purport to, and do not, present fairly the financial position of Town of Colma, California, as of June 30, 2021, and the changes in its financial position for the year then ended in conformity with U.S. generally accepted accounting principles.

1101 FIFTH AVENUE, SUITE 360 SAN RAFAEL, CA 94901 TEL (415) 457-1215 FAX (415) 457-6735 www.rjrcpa.com

R. J. RICCIARDI, INC.

CERTIFIED PUBLIC ACCOUNTANTS

Town Council
Town of Colma – Page 2
- 2 -
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Measure W Fund of Town of Colma, California, as of June 30, 2021, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

R.J. Ricciardi, Inc.

R. J. Ricciardi, Inc.

Certified Public Accountants
San Rafael, California
October 6, 2021
ASSETS
Cash 55,124$
Accounts receivable 6,247
Total assets 61,371$

LIABILITIES AND FUND BALANCE
Liabilities:

Due to other fund -$
Fund balance:

Assigned 61,371
Total liabilities and fund balances 61,371$
Town of Colma
Measure W Fund
June 30, 2021

BALANCE SHEET

GOVERNMENTAL FUND TYPE
The accompanying notes are an integral part of these financial statements. - 3 -
Revenues:
1/2 cent sales tax 30,769$
Use of money and property 343
Total revenues 31,112
Expenditures:

Capital outlay -
Total expenditures -
Excess of revenues over expenditures 31,112

OTHER FINANCING SOURCES (USES)
Transfers in -
Transfers out -
Total other financing sources (uses) -
Net change in fund balance 31,112
Fund balance, beginning of period 30,259
Fund balance, end of period 61,371$

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE Town of Colma

GOVERNMENTAL FUND TYPE
For the Fiscal Year Ended June 30, 2021
Measure W Fund
The accompanying notes are an integral part of these financial statements. - 4 -
Town of Colma
Measure W Fund

NOTES TO FUND FINANCIAL STATEMENTS
June 30, 2021
- 5 -
NOTE 1 - REPORTING ENTITY
At the general election on November 6, 2018, the voters of San Mateo County approved Measure W, “An ordinance providing for the imposition of a one-half of one percent sales tax on all retail transactions in the County of San Mateo for the improvement of local transportation, including transit, streets and roads.”
The Measure W Fund (the Fund) is a blended component unit nonmajor fund of Town of Colma.

The accounting policies of the Fund conform to U.S. generally accepted accounting principles as applicable to governments. The accompanying financial statements present financial information for only the Measure W Fund, and not for Town of Colma (the Town) as a whole.

All annual appropriations lapse at year end.

Town of Colma
Measure W Fund

NOTE 5 - ASSIGNED FUND BALANCE
The accompanying financial statements reflect certain changes that have been made with respect to the reporting components of fund balances for governmental funds. In previous years, fund balances for governmental funds were reported in accordance with previous standards that included components for reserved fund balance, unreserved fund balance, designated fund balance, and undesignated fund balance. Due to the implementation of GASB Statement No. 54, the components of fund balances of governmental funds now reflect the component classification of assigned fund balance.

Assigned fund balance includes amounts intended to be used by the Town for specific purposes, subject to change, as established either directly by the Town Council or by management officials to whom the assigned authority has been delegated by the Town Council.

NOTE 6 - SUBSEQUENT EVENTS
The Town’s management has evaluated events and transactions subsequent to June 30, 2021 for potential recognition or disclosure in the financial statements. Subsequent events have been evaluated through the date the financial statements became available to be issued. - 7 -

REPORT ON COMPLIANCE BASED

ON AN AUDIT OF FINANCIAL STATEMENTS

PERFORMED IN ACCORDANCE WITH AUDITING

STANDARDS GENERALLY ACCEPTED IN

THE UNITED STATES OF AMERICA
Honorable Mayor and Members
of the Town Council
Town of Colma
Colma, California
We have audited the Town of Colma’s compliance with the agreement between the Town of Colma and San Mateo County Transportation Authority applicable to the Measure W Fund for the year ended June 30, 2021. Compliance with the requirements referred to above is the responsibility of Town of Colma’s management. Our responsibility is to express an opinion on Town of Colma’s compliance based on our audit.

We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; and the agreement between the Town of Colma and San Mateo County Transportation Authority. Those standards and agreement require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above could have a material effect on the Measure W Fund. An audit includes examining, on test basis, evidence about Town of Colma’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of Town of Colma’s compliance with those requirements.

Compliance
As part of obtaining reasonable assurance about whether Town of Colma Measure W Fund’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grants, including tests of Town of Colma’s compliance with certain provisions of Measure W, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under U.S. generally accepted auditing standards.

R.J. Ricciardi, Inc.

R. J. Ricciardi, Inc.

Certified Public Accountants
San Rafael, California
October 6, 2021

1101 FIFTH AVENUE, SUITE 360 SAN RAFAEL, CA 94901 TEL (415) 457-1215 FAX (415) 457-6735 www.rjrcpa.com

R. J. RICCIARDI, INC.

CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT ACCOUNTANTS’ REPORT

ON AGREED-UPON PROCEDURES APPLIED

TO APPROPRIATIONS LIMIT WORKSHEETS
Honorable Mayor and
Members of the Town Council
Town of Colma
We have applied the procedures enumerated below to the accompanying Appropriations Limit worksheet of the Town of Colma (the Town) for the year ended June 30, 2022. These procedures, which were agreed to by the Town (as presented in the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines) were performed solely to assist the Town in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution.

This engagement to apply agreed-upon procedures was performed in accordance with standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of the specified users of the report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which the report has been requested or for any other purpose.

The procedures performed and our findings were as follows:

1. We obtained the completed appropriation limit worksheets and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the Town Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the Town Council.

Finding: No exceptions were noted as a result of our procedures.

2. For the accompanying Appropriations Limit worksheet, we added last year’s limit and total adjustments, and compared the resulting amount to this year’s limit.

Finding: No exceptions were noted as a result of our procedures.

3. We compared the current year information presented in the accompanying Appropriations Limit worksheet to the other worksheets described in No. 1 above.

Finding: No exceptions were noted as a result of our procedures.

4. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit worksheet to the prior year appropriations limit adopted by the Town Council for the prior year.

Finding: No exceptions were noted as a result of our procedures. 1101 FIFTH AVENUE, SUITE 360 SAN RAFAEL, CA 94901 TEL (415) 457-1215 FAX (415) 457-6735 www.rjrcpa.com R. J. RICCIARDI, INC.

CERTIFIED PUBLIC ACCOUNTANTS
Attachment F
Honorable Mayor and
Members of the Town Council
Town of Colma - Page 2
This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to, and did not perform an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit worksheet. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures; other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by the League publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines.

This report is intended solely for the use of the Town of Colma and is not intended to be, and should not be, used by anyone other than the specified parties.

R.J. Ricciardi, Inc.

Certified Public Accountants
San Rafael, California
September 9, 2021
Honorable Mayor and
Members of the Town Council
Town of Colma - Page 3
Article XIIIB Appropriation Limit Calculation
Prior Year Limit $ 54,582,281
Multiply by:

State per capita personal income 1.057
Change in population 0.992 1.049
Total Appropriation Limit Fiscal Year 2021-2022 $ 57,274,771

Staff Report re FY 2021-22 Mid-Year Financial Update Page 1 of 4

ST AFF REPORT
TO
: Mayor and Members of the City Council
FROM: Pak Lin, Administrative Services Director
VIA: Brian Dossey, City Manager
MEETING DATE: February 23, 2022
SUBJECT: FY 2021-22 Mid-Year Financial Update & Budget Amendment

RECOMMENDATION
Staff recommends that the City Council make:

MOTION ACCEPTING THE FISCAL YEAR 2021-22 MID-YEAR FINANCIAL REPORT THROUGH DECEMBER 31, 20 21 AND AUTHORIZING A COPY TO BE POSTED ON THE TOWN’S WEBSITE

EXECUTIVE SUMMARY
Mid-year financial reports serve as a communication tool on the financial health of the Town and offers early warnings of potential financial concerns. Especially during the COVID- 19 pandemic, it is essential to understand whether the Town is operating within its revenue constraint s and whether further spending reductions are needed because of the revenue constraints.

As of December 31, 2021, the Town received $7.33 million, or 42% of budget, and spent $8.58 million, or 48% of budget. Comparing to the burn rates in FY 2021-22 to those of the prior three fiscal years, the Town is financially healthy and should be able to meet its revenue projections and stay within budget by the end of the fiscal year.

FISCAL IMPACT
This report is for informational purposes only, and there is no fiscal impact.

BACKGROUND
Annually, a mid -year financial review is submitted to the City Council for consideration and discussion. The review consists of a summary of the Town’s fiscal performance, fund availability, and departmental needs and accomplishments. The review also includes discussion on potential overages and the use of potential savings, in accordance with Colma Administrative Code

4.01.200.

Attachment A shows financial trends and analysis for the Town’s General Fund from FY 2018-19 through FY 2021 -22. The FY 2018- 19 financial summary was listed as a reference of Town operations through mid-year before the spread of COVID-19. The FY 2019-20 financial summary includes the first three months of the COVID -19 Shelter in Place order, which resulted in near Item #4
Staff Report re FY 2021-22 Mid-Year Financial Update Page 2 of 4 complete business closures and the dramatic fall of the US Stock Market. Beginning in FY 2020- 21, COVID-19 safety protocols were gradually lifted, and businesses began reopening in a reduced capacity. Outdoor and virtual services helped the US economy to recover from the initial economy freefall.

With the continued oscillation of COVID -19 cases and hospitalization s, the Town’s FY 2021-22 adopted budget reflected the continued financial impact of the COVID-19 pandemic. The FY 2021- 22 Budget to Actual Analysis is used to understand the Town’s ability to operate within the COVID- 19 revenue constraints. Comparisons to FY 2018 -19 is used to understand the Town’s financial recovery since the start of the pandemic. FY 2018 -19 was the last full year prior to the COVID - 19 pandemic.

ANALYSIS
As shown in Chart 1 of Attachment A, General Fund
revenues are performing strong, with 42% of its
budgeted revenues h ave been received by
December 31, 2021. Since the passage of AB147 in
FY 2020-21, the Town received $200,000 more in
online sales tax distribution (also known as County
Pool allocation or Use Tax Distribution) per quarter.

Sales tax from auto sales and bui lding &
construction remained strong throughout the
pandemic. Per HdL, the Town’s sales tax consultant,
the Town’s sales tax revenues should restore to pre-pandemic numbers by June 30, 2022.

The Town has also seen a similar restoration of cardroom tax reve nues when the Town’s cardroom operation began offering outdoor options.

While General Fund revenues are on track to meet the total FY 2021-22 Budget of $17.53 million, the budget is $0.86 million less than FY 2018- 19 actual of $18.39 million. This signifies that the Town is cautiously optimistic that General Fund revenues will return to pre-pandemic levels in FY 2021-22 or FY 2022-23.

Chart 2 of Attachment A shows that the burn rate for
General Fund expenditures is less than the prior
three fiscal years. The largest category of
expenditures in the General Fund is personnel cost,
and personnel cost is considered as fixed cost as cost
reduction in this category generally takes more than
one year. The reason the Town incurred 48% of
general fund expenditures by December 31, 2021 is
largely due to vacant positions budgeted but not
filled as of July 1, 2021. This results in salary savings.

The FY 2021-22 budgeted expenditures include contingency budgeting to allow the Town to quickly address unforeseen emergencies, such as a sink hole or needed feasibility studies. This is the reason for an increase of $2.68 million to $3.84 million in FY 2021 -22 expenditure budget than the annual actual spending for the last three fiscal years. Lastly, the FY 2021- 22 assumes

Staff Report re FY 2021-22 Mid-Year Financial Update Page 3 of 4 department operations to be at full capacity. To slow the spread of COVID -19 and its many variants, many Town services were offered in a reduced capacity.

Table 4 of Attachment A shows the total General
Fund Reserves by reserves title and categories. The
Town’s total General Fund Reserves increased by
$3.53 million from June 30, 2020 to June 30, 2021.

By 2021- 22 mid -year, the General Fund Reserves
reduced by $1.34 million. Budget Stabilization
reserve was increased by $3.0 million per City
Council’s direction during the FY 2021 -22 budget
adoption. Transfers to accrued leave payout
reserves, capital program, and sewer operations will
be completed as part of the FY 2021-22 year-end process.

D
EPARTMENTAL ACCOMPLISHMENTS:

Under the pressure of the COVID-19 safety protocols, the Town was able to accomplish the following objectives by December 31, 2021.
• The City Manager’s Office presented to the City Council on January 26, 2022 the FY 2021- 22 Economic Development Work, which included contracting with Retail Coach to help fill vacant stores
• The Police Department secured contracts for body worn cameras and in-car cameras. The contract included Automatic License Plate Readers to help with crime prevention and investigation.
• Human Resources Department filled all full -time vacant positions and have filed and reported more than a dozen COVID -19 cases in accordance with COVID -19 safety reporting requirements.
• The Engineering Department completed the grant process for two major FY 2020- 21 capital improvement projects, including a $2.86 million project for the Mission Road Bicycle and Pedestrian project (903) and El Camino Real Bicycle and Pedestrian Plan (914). • In conjunction with the Planning Department, Planning and Engineering also submitted several grant applications for the next phase of the El Camino Real Bicycle and Pedestrian project and for other roadway plans and improvement projects. • The Planning Department has reached the final steps in the General Plan Update and will begin finalizing the report. Thereafter, the Department will begin updating the Housing Element and the Zoning Code to be consistent with the General Plan. • The Recreation Department reopened its doors and began offering afterschool programs and other creative classes, programs, and events while complying with COVID -19 safety protocols.

Staff Report re FY 2021-22 Mid-Year Financial Update Page 4 of 4 Table 5 of Attachment A lists the 14 actively funded projects in FY 2021-22 and the spending during FY 2021 -22. The last table, Table 6 includes a summary of the reserve balance for all funds.

Reasons For the Recommended Action/Findings
Acceptance of the report provides disclosure of current year revenue and expenditure trends.

Council Adopted Values
P
eriodic review of the Town’s financial condition aligns with the City Council adopted responsibility value. It exemplifies financial accountability and ensure s reasonable use of public funds.

Additionally, publishing the accepted report on the Town’s website promotes meaningful public involvement and thereby aligns with the City Council adopted fairness value.

NCLUSION
Staff is requesting that the City Council receive and file the report.

ATTACHMENTS
A. 2021-22 Mid-Year Financial Report
GENERAL FUND RESERVES Jun 30, 2020 Jun 30, 2021 Dec 31, 2021 COMMITTED RESERVES (12)
BUDGET STABILIZATION 12,000,000 12,000,000 15,000,000 DEBT REDUCTION 600,000 600,000 600,000
ACCRUED LEAVE PAYOUT 715,000 605,670 605,670
COMMITTED RESERVES TOTAL 13,315,000 13,205,670 16,205,670 ASSIGNED RESERVES (11)
LITIGATION 100,000 100,000 100,000
INSURANCE 100,000 100,000 100,000
DISASTER RESPONSE & RECOVERY 750,000 750,000 750,000 ASSIGNED RESERVES TOTAL 950,000 950,000 950,000
UNASSIGNED RESERVE (11) 9,568,432 13,203,304 9,125,579 TOTAL GF RESERVES 23,833,432 27,358,974 26,281,249
TABLE 4: GENERAL FUND RESERVES HISTORY
CHART 2: MID-YEAR EXPENDITURE TO FULL YEAR COMPARISON
FY 2021-22 MID-YEAR FINANCIAL REPORT
(JULY 1, 2021 – DECEMBER 31, 2021)
CHART 3: MID-YEAR EXPENDITURE TO FULL YEAR COMPARISON
CHART 1: MID-YEAR REVENUES TO FULL YEAR COMPARISON
$18.39 M
$6.79 M
(37%)
$15.64 M
$6.59 M
(42%)
$17.84 M
$5.79 M
(32%)
$17.53 M
$7.33 M
(42%)
$0.00 M
$4.00 M
$8.00 M
$12.00 M
$16.00 M
$20.00 M
Thru
6/30/19
Thru
12/31/18
Thru
6/30/20
Thru
12/31/19
Thru
6/30/21
Thru
12/31/20
21/22
Budget
Thru
12/31/21
General Fund Revenues
Sales Tax
Cardroom Tax
Other Revenues
GENERAL FUND: BUDGET VS ACTUAL
Overall, the Town is financially healthy at mid-year. By December 31, 2021, the Town received $7.33 million in General Fund revenues - with $5.08 million in sales tax, $1.84 million in cardroom tax and $0.42 million in other general fund revenues.

Total General Fund expenditure was $8.58 million with a burn rate of 48%.

GENERAL FUND REVENUES
As shown in Chart 1 (right), the revenue run rate for General Fund is 42% of budget, which is similar to the prior three fiscal years.

Additionally, the Town received 42% of its budgeted sales tax revenues and 52% of its cardroom tax by mid-year. These are good indicators the Town will reach our General Fund revenue projections by the end of the fiscal year; absent another unforeseen interruption to the economy.

GENERAL FUND EXPENDITURES
General Fund Expenditures are shown by Categories (Chart 2) and by Departments (Chart 3).

In Chart 2, personnel expenditures totaled $6.09 million, or 52% of budget. The typical burn rate for personnel cost by mid-year is between 50% and 60%, because of lump-sum payments made
towards unfunded pension liabilities in July of each fiscal year.

Non-personnel expenditures of $2.49 million, or 42% of budget, is reasonable as well, since the budget for non-personnel includes special projects slated for the second half of the fiscal year and contingency budget to address unforeseen emergencies.

Comparing expenditure trends by department (Chart 3), General Government and Public Safety spending rate is consistent with prior years, at 54% and 51%, respectively. General Government includes insurance payments ($784,000) in the beginning of the fiscal year, and therefore the burn rate will generally be higher than 50% by mid-year. Public Works & Planning and Recreation are both trending at 35% and 31% respectively. This is typical of Public Works & Planning as majority of their budget is non-personnel.

Recreation operations continue to be impacted by the COVID-19 pandemic, and full operation has not been restored in the first half of the year.

GENERAL FUND RESERVES
Total General Fund reserves as of December 31, 2021 is $26.3 million. This includes increasing the Budget Stabilization reserve by $3.0 million and budgeted transfer of $105,000 to the Accrued Leave Payout reserve. General Fund transfers to the Capital program ($532,000) and to the sewer operation ($238,000) will be completed as part of the year-end process.
$14.26 M
$7.55 M
(53%)
$15.02 M
$8.25 M
(54%)
$13.86 M
$7.57 M
(55%)
$17.70 M
$8.58 M
(48%)
$0.00 M
$4.00 M
$8.00 M
$12.00 M
$16.00 M
$20.00 M
Thru
6/30/19
Thru
12/31/18
Thru
6/30/20
Thru
12/31/19
Thru
6/30/21
Thru
12/31/20
21/22
Budget
Thru
12/31/21
General Fund Expenditures (by Categories)
Personnel
Non-Personnel
$14.34 M
$7.55 M
$15.27 M
$8.25 M
$13.86 M
$7.57 M
$17.95 M
$8.58 M
$0.00 M
$4.00 M
$8.00 M
$12.00 M
$16.00 M
$20.00 M
Thru
6/30/19
Thru
12/31/18
Thru
6/30/20
Thru
12/31/19
Thru
6/30/21
Thru
12/31/20
21/22
Budget
Thru
12/31/21
General Fund Expenditures (by Departments)
Recreation
Public Works & Planning
Public Safety
General Government
FY 2021-22 Mid-Year Financial Report (July 2021 - December 2021) Page 1 of 2 Attachment A
Project Phases
% of
Budget
ANNUAL ROADWAY REHAB. Const 0%
F-STREET RETAINING WALL Design 21%
MISSION RD BIKE & PED IMPR Compl 100%
MISSION ROAD LANDSCAPING Design 0%
MISSION ROAD CROSSWALK Design 0%
COLMA MUSEUM FAC. REPR Design 0%
FACILITY PARKING LOT Design 0%
GENERAL PLAN UPDATE Plan 11%
HOUSING ELEMENT UPDATE Plan 19%
ZONING CODE UPDATE Plan 0%
EQUIPMENT PURCHASE & REPL.

CHAMBER AV SYSTEM Design 0%
PD IN-CAR AND BODY CAM. Impl 35%
FINANCIAL SOFTWARE REPL. Hold 0%
IT INFRASTRUCTURE (21/22) Ongoing 45%
VEHICLE REPLACEMENT (21/22) Ongoing 58%
CAPITAL PROGRAM TOTAL 18%

AUDITED R E
Fund Balance Revenues Expenditures
FUND TITLE Fund @ 7/1/21 YTD 12/31/21 YTD 12/31/21
GENERAL FUND 11
LITIGATION RESERVE 100,000 0 0
INSURANCE RESERVE 100,000 0 0
DISASTER RESERVE 750,000 0 0
UNASSIGNED 11 13,203,304 7,510,583 (8,502,276)
UNASSIGNED 19 (110,008) (178,100) (81,699)
GENERAL FUND RESERVE 12 0
BUDGET STABLIZATION 12,000,000 0 0
DEBT REDUCTION 600,000 0 0
ACCRUED LEAVE PAYOUT RESERVE 12 605,670 0 0
GENERAL FUND TOTAL 27,248,966 7,332,483 (8,583,975) GAS TAX 21 83,615 35,313 (9,281)
MEASURE A 22 80,376 33,600 0
HOUSING IMPACT FEES 25 278,563 77 0
MEASURE W 26 61,371 8,622 0
PUBLIC SAFETY GRANTS 27 6,315 0 0
COPS GRANT 29 78,588 107,013 (110,602)
SPECIAL FUNDS TOTAL 588,828 184,624 (119,882)
CAPITAL IMPROVEMENT 31 1,572,253 (92,024) (118,228) STREET CAPITAL 32 854,019 59,208 (9,220)
CAPITAL FUNDS TOTAL 2,426,272 (32,815) (127,448)
COP DEBT SERVICE 43 (806) 0 (86,034)
DEBT FUND TOTAL (806) 0 (86,034)
VEHICLE / FLEET REPLACEMENT ISF 61 740,887 205 (94,787) INTERNAL SERVICE FUND (ISF) TOTAL 740,887 205 (94,787) SEWER OPERATING 81 6,203 379,115 (814,221)
SEWER CAPITAL 82 0 0 0
CITY PROPERTIES 83 231,323 80,974 (72,455)
ENTERPRISE FUND TOTAL 237,526 460,089 (886,676)
TOTAL FOR ALL FUNDS (NON TRUST) 31,241,673 7,944,585 (9,898,803) OPEB TRUST 71 5,712,224 639,820 (524,931)
RETIREMENT TRUST 72 1,930,267 502,631 (5,268)
TRUST FUNDS TOTAL 7,642,491 1,142,451 (530,198)
TOTAL FOR ALL FUNDS (NON TRUST) 38,884,164 9,087,036 (10,429,002)

ADDITIONAL DETAILS AND INFORMATION
0 22,410
94,787
222,235
(
1,341,966)
(1,954,218)
114,889
497,364
Available
Project
Budget
150,000
36,590
1,569
29,000
11,000
75,000
99,025
58,165
98,746
100,000
32,339
201,000
100,000
50,000
164,000
1,206,434
612,252
(435,106)
0 8,519
(426,587)
(2)
(94,582)
(94,582)
(210,250)
49,986
(160,264)
(2)
8,622
0 (3,589)
64,742
26,032
33,600
77 3,000,000
0 0
(1,337,524)
0 0
(4,077,725)
(259,799)
0 0
0 0
0 0
0 0
0 0
0 3,000,000
0 0
(86,032)
86,032
0 0
2 (2)
0 86,032
0 0
0 0
0 0
0 0
0 (3,086,032)
0 0
0 5,827,113
646,305
646,305
(428,903)
0 2,266,008
(808)
(808)
74,999
653,570
1,362,003
904,005
109,647
113,976
2,427,631
8,254,743
37,542,198
239,842
(189,061)
29,287,455
TABLE 5: FY 21/22 CAPITAL PROGRAM SUMMARY
TABLE 6: FUND BALANCE SUMMARY FOR ALL FUNDS
Fund Balance
@ 12/31/21
Net
Transfers
In/(Out)
Net Change in
Fund Balance
Project
Spending
0 7,652
1,569
0 0
0 0
6,677
18,727
0 0
70,415

ISFENTERPRISETRUST GENERAL FUNDSPECIAL FUNDSCAPITALDEBT 100,000
100,000
750,000
9,125,579
(369,807)
15,000,000
600,000
278,640
69,993
6,315
605,670
25,911,442

CAPITAL PROGRAM
The Capital Program is the next largest expenditure category for the Town. For FY 2021-22, the Town has 14 actively funded projects, with a total available project budget of $1.21 million.

Of the 14 projects, six projects are in the design phase and the project budget may increase when they enter the construction phase. There are three long-term plans, with the General Plan Update near completion. The Financial Software Replacement is on hold at this time and will be begin the needs assessment phase in mid-2022.

As for the Mission Road project, the roadway repair phase is completed. The next phase is the landscape enhancements and proposed crosswalk replacement, and the cost will be tracked separately as Project No 908 and 909, respectively.

This format was prepared by the Finance Department to highlight in summary fashion key indicators of the Town's Financial performance. Additional Financial Reports and Budgets – including earlier Quarterly Financial Reports, Audits and Budgets – are also available on the Town website www.colma.ca.gov . This report will also be posted on the Town website after it has been reviewed by the City Council FY 2021-22 Mid-Year Financial Report (July 2021 - December 2021) Page 2 of 2 Staff Report - Public Art program Page 1 of 5
February 23, 2022

STAFF REPORT
T
O: Mayor and Members of the City Council
FROM: Farhad Mortazavi APA, City Planner
Laurel Mathews, Associate Planner
VIA: Brian Dossey, City Manager
DATE: February 23, 2022
SUBJECT: Public Art in Colma

RECOMMENDATION
Staff recommends that the Council consider the presentation and provide feedback on the proposal for a public art program in Colma.

XECUTIVE SUMMARY
The purpose of this study session is to present a proposal for what a public art program could look like in Colma, based on the feedback received during the previous Public Art Study Session in October 2021.

BACKGROUND
The Town of Colma Strategic Plan for 2020-2022 includes an objective of developing a public art and wayfaring program, in the interest of building upon our community identity and maintaining quality of life. On October 13, 2021 the Planning Department presented a public art study session to the City Council in order to gauge interest in implementing public art in Colma in Fiscal Year 2022 – 2023.

At the October Council meeting, the Council expressed tentative interest in pursuing such a program and provided feedback to staff on their priorities and concerns for a public art program in Colma. The Planning Department built a public art program proposal based on that feedback.

This staff report summarizes the Planning Department’s proposal for what a public art program could look like in Colma over the next two years. The purpose of this report is not to make a recommendation, but instead to present available options to support City Council in their decision as to whether and how to institute a public art program.

PROPOSAL
What we heard: Start small; Create a foundation for larger projects in future years.

Item #5
Staff Report - Public Art program Page 2 of 5
February 23, 2022
Proposed program objectives:

1. Commission 2-4 pieces of small public art in FY 2022-2023. Choose designs that are decorative and that depict uncontroversial subjects.

For example, the Town could:

Paint or vinyl-wrap two utility cabinets
Utility cabinets are a popular site for small-scale public art. In Redwood City, the artist fee for painting a utility cabinet is $500 and the cost of UV-resistant coating can cost up to $1,000. Some potential starter sites for art on utility cabinets include Junipero Serra Blvd (near Serra Center) and at Colma Blvd and Junipero Serra Blvd (near 280 Metro Center). Some jurisdictions order vinyl wraps rather than painting directly on the utility cabinet, though that increases the project cost.

Paint on bike rack
Bike racks can be detached from their location and shipped or driven to an artist to paint and return. Great candidates for this treatment could include the bike racks at city hall and/or the bike rack at the Colma Community Center and Historical Museum.

Install one micro-sculpture
The Town could commission a micro-sculpture. These sculptures can be installed on light poles, on benches, near bus stops, or on fences. Several potential locations where such a sculpture may be installed include the base of the stairs near Sweet Dreams Bakery, on the fence at the Sterling Park Dog Park, the highly visible streetlight pole near Vivana Fair, or one of the shopping centers (if the owner expresses interest).

Alternative types of small public art include micro-murals, light installations, and painted bollards.

2. Create standards, document templates, and processes in FY 2022-2023 that can be re- used and improved upon in later years.

The call for artists, project plan, materials statement, maintenance plan, and contract for each piece of small art should be easily adaptable for use in later and potentially larger projects. Budget and attention should be allocated for program set-up, staff time and administration, and City Attorney review.

What we heard: Funding is a concern, but there are several options that Colma could pursue for a funding ordinance, including private sponsorship, fundraising, and a percent-for-the-arts ordinance.

Proposal for funding:

1. Set up a program that allows individuals and businesses to sponsor a piece of art; make it flexible so that in the future we can use this system to allow sponsorships of events.

Staff Report - Public Art program Page 3 of 5
February 23, 2022
In the past, the Town has received sponsorships from businesses for events such as the Halloween trunk-or-treat event and the Colma Police Department’s National Night Out event. However, each sponsorship is currently processed as a one-off donation.

In FY 2022-2023, the town could work with the Finance Department and the City Attorney to create a more structured way for private donors to sponsor public art processes and events.

2. Set a fundraising minimum goal for each city council member during FY2022-2023.

At the October 13, 2021 City Council meeting, Council proposed the idea of setting a fundraising goal for each member to raise private funding for public art projects.

3. Pass a “percent-for-the-arts” policy that contributes a share of the surplus each year to Public Art.

Over the last 5+ years (excluding FY19-20 – Covid 19), Colma has ended with a budget surplus each year. The General Fund reserves have grown on average $1.2 million per year. Currently, a small share of that surplus goes toward Capital Improvement Projects (CIP). In the same way that a share of the surplus is currently directed to CIP, the Town could adopt a policy to contribute a share of each year’s budget surplus toward public art. There could be a provision in this policy stipulating that Council gets final veto power in case there is a compelling reason to redirect this surplus funding away from public art and toward another Town project or program.

Proposal for decision-making and public input:

1. Use a streamlined public input process for small art. Allow staff to make a recommendation to Council about which design should be chosen.

For small scale public arts, notify businesses and property-owners directly adjacent to a specific location that a piece of art is being considered. Allow the public to comment at a public hearing where the design is selected, but bypass the more in-depth public engagement process that may be warranted for larger public arts.

From all designs submitted, staff should select the most appropriate designs and make a recommendation to City Council. Council may either accept this recommendation or vote on a different submitted design.

2. In the program’s second or third year, staff could create an ad hoc committee to guide the development of a Colma mural.

Commissioning a mural requires more effort from more people than small public art projects. When the town is ready to consider moving from smaller art works to larger projects (i.e. mural), an committee can be formed of interested local stakeholders, staff, and 1-2 City Council members.

Staff Report - Public Art program Page 4 of 5
February 23, 2022
This committee can organize and facilitate community meetings, distribute the workload of researching and interviewing artists, and ensure that the project plan is being followed in the mural’s development.

Proposed Timeline:

Spring 2022:
- Provide input to staff on the public art program proposal. - Allocate public art program start-up funding in the FY2022-2023 budget.

Summer 2022:
- Pass a percent-for-the-arts policy which allocates funding from the Town’s budget surplus for public art.
- Draft a project plan and call for proposals for one to two small art projects.

Fall 2022:
- Set up fund-raising program: Council fundraising targets + private sponsorship program. - Distribute call for proposals for one to two art projects. - Select designs for proposed art projects (projects 1 & 2).

Winter 2023:
- Install selected art projects.
- Draft project plan and call for proposals for additional small art projects (projects 3 & 4) - Distribute call for proposals for art projects 3 and 4. - Select designs for art projects 3 and 4.

Spring 2023:
- Evaluate FY 2022-2023 program against targets and plan for FY 2023-2024. - Install art projects 3 and 4.

Council Adopted Values

Public Art supports the Council-adopted value of Community , since it can build upon the Town’s identity and maintain quality of life.

Staff Report - Public Art program Page 5 of 5
February 23, 2022

ENVIRONMENTAL

The City Council’s action in engaging in this study session is not a project subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline 15301 as it can be seen with certainty that a general discussion and general direction on future public art programs will not create any potentially significant impact on the environment. Further, in most cases, a mural consists of exterior alterations to an existing public facility with negligible or no expansion of use. Therefore, a mural project is likely to be exempt from the provisions of CEQA, pursuant to Article 19, 15301(a) of California CEQA Guidelines. It could also be exempt under CEQA Guideline 15303 as new construction of limited small structures within the Town.

CONCLUSION
The City Council is encouraged to participate in the presentation by providing comments and direction to staff and the consultant team on the proposal for a public art program in Colma.

Staff Report - New Laws 2022 Page 1 of 2

STAFF REPORT
T
O: Mayor and Members of the City Council
FROM: Christopher J. Diaz, City Attorney
VIA: Brian Dossey, City Manager
MEETING DATE: February 23, 2022
SUBJECT: Presentation on New Laws in 2022

RECOMMENDATION
Staff recommends that the City Council receive a presentation on new laws in 2022. No formal action is required.

EXECUTIVE SUMMARY AND ANALYSIS
As the City Council is well aware, the State Legislature is busy every legislative season introducing and adopting new laws that impact all governmental agencies in California, including the Town of Colma. In an effort to provide a broad overview of some of the new laws impacting public agencies, the City Attorney’s Office will be providing a presen tation detailing some of the new laws in effect in 2022.

FISCAL IMPACT
The receipt of a presentation will not impact the Town financially. However, a variety of the new laws may require some action on the part of the Town which could cause a financial imp act in terms of staff time, City Attorney time, and general cost for overall legal compliance.

ENVIRONMENTAL
The action of the City Council in receiving the presentation is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline 15061(b)(3) as it can be seen with certainty that the action will not cause any potentially significant impact on the environment Council Adopted Values
The City Council’s action in receiving the presentation is responsible and fair as it ensures the City Council is aware of the new laws and that the public also has a fair opportunity to hear about new laws impacting cities and towns similar to the Town of Colma.

Item #6
Staff Report - New Laws 2022 Page 2 of 2

CONCLUSION
The City Council should receive the presentation.

Colma City CouncilFebruary 23, 2022

Colma City Council
February 23, 2022