Coronado City Council
July 16, 2024

At the commencement of the lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date.

Subsequently, the deferred inflows of resources are recognized as revenue over the life of the lease term.

Key estimates and judgments include how the City determines the discount rate it uses to discount the expected lease receipts to present value, lease term, and lease receipts.

The City used the estimated incremental borrowing rate as the discount rate for leases. The lease term includes the non-cancellable period of the lease. Lease receipts include the measurement of the lease receivable and are composed of fixed payments from the lease.

The City monitors changes in circumstances that would require a remeasurement of its leases and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. v. Subscription-Based Information Technology (IT) Arrangements The City is a participant in subscription-based IT arrangements as detailed in Note 8 – Long-Term Debt Obligations. The City recognizes a subscription-based IT payable and right to use IT assets in the financial statements.

At the commencement of the arrangement, the City initially measures the payable at the present value of payments expected to be paid during the arrangement term. Subsequently, the payable is reduced by the principal portion of payments made. The right to use assets are initially measured at the initial amount of the subscription-based IT payable.

Subsequently, the right to use assets are amortized over the life of the arrangement term, 48 Attachment 1
City of Coronado Page 403

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 2: CASH AND INVESTMENTS
Cash and investments at June 30, 2023, are reported in the accompanying basic financial statements as follows:

Cash and investments at June 30, 2023, consisted of the following:

Deposits:

At June 30, 2023, the carrying amount of the City’s demand deposits was $40,441,248 and the bank balances were $39,674,544. The $766,704 difference represents outstanding checks, deposits in transit, and other reconciling items.

Investment Authorized by the California Government Code and the City’s Investment Policy:

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

Governmental
Activities
Business-Type
Activities
Fiduciary
Funds Total Fair Value
Cash and investments $ 169,312,952 $ 41,151,304 $ 29,570,088 $ 240,034,344 Restricted cash and investments 14,838,792 - - 14,838,792 Total Cash and Investments $ 184,151,744 $ 41,151,304 $ 29,570,088 $ 254,873,136 $ 40,441,248
12,400
214,419,488
$ 254,873,136
Demand accounts
Petty Cash
Investments
Total Cash and Investments
49 Attachment 1
City of Coronado Page 404

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 2: CASH AND INVESTMENTS (Continued):

Maximum
Amount or Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity Allowed in One Issuer U.S. TreasuryBills, Bonds, and Notes 5 years None None
U.S. Government Agency Obligations 5 years None None
State of California Registered,Notes 5 years None None
Warrants, or Bonds
Registered Notes or Bonds of
Other Municipalities None None None
Negotiable Certificates of Deposit 5 years 30% N/A
Time Deposits 5 years N/A N/A
Medium-Term Notes 5 years 30% 5%
Commercial Paper 270 days 25% 10%
Bankers Acceptances 180 days 40% 30%
Repurchase Agreements 1 year None None
Local Agency Investment Funds (LAIF) N/A None None
County of San Diego Investment Pool N/A None None
Joint Powers Authority Shares
of Beneficial Interest N/A None None
Money Market Funds
N/A=Not Applicable
N/A 20% 10%
Investment Authorized by Debt Agreements:

Investment of debt proceeds held by bond trustee is governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. Investments authorized for funds held by bond trustee include U.S.

Treasury Obligations, Federal Agency Securities, Certificates of Deposits, Commercial Paper, Local Agency Bonds, Bankers’ Acceptance, Money Market Mutual Funds, Investment Contracts and Repurchase Agreements. There were no limitations on the maximum amount that can be invested in one issuer, maximum percentage allowed or the maximum maturity of an investment.

Disclosures Relating to Interest Rate Risk:

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. The longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio matures or comes close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
50 Attachment 1
City of Coronado Page 405

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 2: CASH AND INVESTMENTS (Continued):

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:

Disclosure Relating to Credit Risk:

Credit risk is the risk that the issuer of an investment will not fulfill its obligation to the maturing of the investment. This risk is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type:

Concentration of Credit Risk:

The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. No investments in any one issuer that represent 5% or more of the total City’s investments.

Investment Type
12 Months
or Less
1 to 2
Years
3 to 5
Years Total
Local Agency Investment Funds $ 85,294,223 $ - $ - $ 85,294,223 Money Market Mutual Funds 16,242,243 - - 16,242,243
Certificates of Deposit 250,000 - 250,000 -
Mutual Funds 14,838,792 - - 14,838,792
San Diego Investment Pool 97,794,230 - - 97,794,230
Total $ 214,419,488 $ - $ - $ 214,419,488
Remaining Maturity
Investment AAA
Local Agency Investment Funds $ 85,294,223 N/A $ - $ 85,294,223 Money Market Mutual Funds 16,242,243 A 16,242,243 -
Certificates of Deposit 250,000 N/A - 250,000
Mutual Funds 14,838,792 N/A - 14,838,792
San Diego Investment Pool 97,794,230 N/A 97,794,230 -
Total $ 214,419,488 $ 114,036,473 $ 100,383,015
Total
Minimum
Legal Unrated
51 Attachment 1
City of Coronado Page 406

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 2: CASH AND INVESTMENTS (Continued):

Custodial Credit Risk:

Custodial credit risk for deposits is the risk, that in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., brokerdealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledge securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. All of the City’s deposits were either fully insured or collateralized as of and for the year ended June 30, 2023.

California Local Agency Investment Fund (LAIF):

The LAIF is a voluntary program, created by a State Statute in 1977 as an investment alternative through which local governments may pool investments. The Local Agency Advisory Board, which consists of five members as designated by State Statute, has oversight responsibility over LAIF.

The City may invest up to $75,000,000 (maximum amount per account allowed by LAIF) in a single LAIF fund account. Investments in LAIF are highly liquid, as deposits can be converted to cash within 24 hours without loss of interest. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. At June 30, 2023, the City’s two combined LAIF accounts proportionate fair value share in the pool was $85,294,223. This total represents $73,720,555 pooled for the City and $11,573,668 pooled for the Successor Agency.

Investment in San Diego County Investment Pool:

The City is a voluntary participant in the San Diego County Treasurer’s Pooled Money Fund, which is managed by San Diego County Treasurer-Tax Collector’s Office on behalf of the County of San Diego, school districts, colleges, special districts, and local agencies in San Diego. Permissible investments in the pool are made in accordance with California State law.

The maximum effective duration for the portfolio is 1.5 years. 52 Attachment 1
City of Coronado Page 407

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 2: CASH AND INVESTMENTS (Continued):

Before a participant can withdraw funds from the pool it must submit a withdrawal request two working days prior to its desired withdrawal date. In addition, the County Treasurer’s Office must ensure that any withdrawals will not adversely affect the interest of all other depositors in the pool. Pursuant to California Government Code, the San Diego County Board of Supervisors has established the Treasury Oversight Committee (TOC) to monitor and review the pool’s investment policy. The TOC requires a financial audit to be conducted on a fiscal year basis to include limited tests of compliance with laws and regulations.

Investment in Public Agency Retirement Services:

The City is a voluntary participant in the Public Agency Retirement Services (PARS). In 2014, the City established an Internal Revenue Service Section 115 irrevocable trust with PARS for pension and OPEB. The trust account allows more control and flexibility in investment allocations compared to City’s portfolio which is restricted by State regulations to fixed income instruments. PARS is audited annually by an independent Certified Public Accountant.

Fair Value Hierarchy:

The City categorizes its fair value measurements within the fair value hierarchy established by GASB 72, Fair Value Measurement and Application. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2023:

Investment Type Totals Level 2
Investments by Fair Value Level:

Certificate of Deposits $ 250,000 $ 250,000
Total Investments by Fair Value Level 250,000 250,000
Other Investments:

Local Agency Investment Funds 85,294,223 -
San Diego Investment Pool 97,794,230 -
Money Market Mutual Funds 16,242,243 -
Mutual Funds (115 Irrevocable Trust) 14,838,792 -
Total Investments Measured at Amortized Cost 214,169,488 - Total Investments $ 214,419,488 $ 250,000
53 Attachment 1
City of Coronado Page 408

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 3: NOTES RECEIVABLE:

The notes receivable at June 30, 2023, consisted of the following:

Lifeline Business Loans:

On April 21, 2020, the City Council established the Lifeline Business Loan program to provide up to $20,000 loans to small locally owned businesses generating sales tax in Coronado who have been adversely impacted by the COVID-19 pandemic. The purpose of the Lifeline Business Loan program is to preserve the City’s tax base and strengthen the local economy’s ability to recover and return to operation quickly.

Funding was prioritized into Tiers with $2 million allocated to Tier I and Tier II businesses.

Eligible Tier I businesses include eating and drinking establishments (non-formula), retail sales (non-formula), and hotels, motels, and bed and breakfasts (non-formula/non-corporate owned).

Eligible Tier II businesses include professional offices, real estate offices, personal services, musicians, repair services, light assembly, light industrial uses, internet providers and arcades, Coronado-based handyman and trade services, photocopying/mailbox services, newspapers and publishing, and non-formula gyms, dance halls, and martial arts studios.

The City received a total of 105 loan applications, of which 94 were approved. The total loans made as of June 30, 2023 are $1,296,168. Management estimated that 25% of these loans will not be collected and reported $324,042 as uncollectible.

Governmental Activities:

Lifeline Business Loans $ 1,296,168
CATPAH 597,324
Tilaro and Day Trust 382,789
Novak 8,325
Silent Second Loans 473,193
CIHC Sr. Housing Loan - 550 Orange Ave. 1,597,292
CIHC LMIH Loan - 525 Orange Ave. 1,046,416
SDIHC LMIH Loan - Orange Villas 1,518,930
CIHC Building Loan - 525 Orange Ave. 800,000
Various Loans 3,000
7,723,437
Business-Type Activities:

Feast and Fareway Loan 616,875
Total Notes Receivable $ 8,340,312
54 Attachment 1
City of Coronado Page 409

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 3: NOTES RECEIVABLE (Continued):

CATPAH Loan:

On July 20, 1993, the former CDA issued a $2,410,000 loan to the Coronado Association to Provide Affordable Housing (CATPAH), a limited partnership, to assist in financing the acquisition and rehabilitation of twenty-three affordable housing units. The loan is non-interest bearing and is secured by a deed of trust on the properties acquired. The balance due under the note is to be repaid upon the earlier of (a) the sale, lease, exchange or other conveyance of the properties (other than the lease to low- and moderate-income households); (b) the uncured default of CATPAH under any of the loan documents; or (c) the expiration of Coronado Community Development plan on July 9, 2031.

Because the probable amount of future payments on the note, or the timing of payments on the note, could not be estimated with reasonable certainty, the disbursement to CATPAH was recorded as an expenditure. A note receivable from CATPAH has been recorded with an offset to allowance for uncollectible account receivables. Interest is accrued on an annual basis at

6.5% and added to the note receivable and deferred interest. On June 30, 2023, the present value for the receivable increased to $597,324.

Tilaro and Day Trusts Loan:

In July 1996, the former CDA issued two loans in the total amount of $520,371 to the Mario and Judith Tilaro Family Trust and John Day Smith Living Trust (Owner) to fund housing assistance and rehabilitation costs for very low income and lower income households. The loans are due on June 11, 2026 provided that the Owner does not default on the agreement, or the property transferred at an earlier date, unless an eligible transferee assumes the loan in a written agreement.

Because the probable amount of future payments on the loans, or the timing of such payments, could not be estimated with reasonable certainty, the disbursement of the monies to the Owner was recorded as an expenditure. A note receivable combining both loans from the Owner has been recorded with an offset to allowance for uncollectible account receivables. Interest is being accrued on an annual basis at 5.65% and added to the note receivable and allowance for uncollectible account receivables. If the loan is forgiven, the loan receivable will be writtenoff. At such time as principal payments are received on the loan in future years, the allowance for uncollectible account receivables will be reduced, and revenue will be recognized in the amount of the principal payments received. On June 30, 2023, the present value of the receivable increased to $382,789.
55 Attachment 1
City of Coronado Page 410

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 3: NOTES RECEIVABLE (Continued):

Novak Loan:

In October 1996, the former CDA issued a loan to an individual in the amount of $10,000 for the purpose of acquiring a housing unit burdened with affordable housing covenants. Under the terms of the agreement, the non-interest-bearing loan is due and payable in full on October 29, 2026; is secured by a trust deed on the property; and requires compliance with the affordable housing covenants.

Because the probable amount of future payments on the loan, or the timing of such payments, could not be estimated with reasonable certainty, the disbursement was recorded as an expenditure. A note receivable from the owner has been recorded with an offset to allowance for uncollectible account receivables. Interest is being accrued on an annual basis at 5.65% and added to the note receivable and allowance for uncollectible account receivables. At such time as principal payments are received on the note in future years, the allowance for uncollectible account receivables will be reduced, and revenue will be recognized in the amount of the principal payments received. On June 30, 2023, the present value of the receivable increased to $8,325.

Silent Second Loans:

From September through November 1998, the former CDA issued six loans to eligible homebuyers (Owners), to assist in the purchase of real property within the City. These noninterest-bearing loans varied in amount from $100,000 to $120,000, and totaling $652,200, are for a term of thirty years, and are secured as second trust deeds. While the loans do not bear interest, if certain events occur, payment of shared appreciation is required. The loans are each repayable upon the earlier sale or other transfer of the property to a non-eligible homebuyer with the shared appreciation amount. However, in the event of an earlier sale or transfer to an eligible homebuyer, the loan may be assumed. The full amount of each loan will be forgiven upon the thirtieth anniversary of the note in the event the Owner is not then in default of the agreement, or the loan has not previously become due.

Because the probable amount of future payments on the loan, or the timing of such payments, could not be estimated with reasonable certainty, the disbursements were recorded as expenditures. One loan receivable from the various Owners has been recorded with an offset to allowance for uncollectible accounts receivable at the discounted present value using a rate of 5.80%. Interest is being accrued on an annual basis at 5.80% and added to the note receivable and allowance for uncollectible account receivables. If the loans are forgiven, the loan receivable will be written off. At such time as principal payments are received on the note in future years, the allowance for uncollectible account receivables will be reduced, and revenue will be recognized in the amount of the principal payments received. On June 30, 2023, the present value of the receivable increased to $473,193.
56 Attachment 1
City of Coronado Page 411

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 3: NOTES RECEIVABLE (Continued):

Coronado Interfaith Housing Corporation Senior Housing Loan – 550 Orange Ave.:

In February 2006, the former CDA entered into a Disposition and Development Agreement (DDA) with the Coronado Interfaith Housing Corporation (CIHC) regarding two properties owned by the former CDA. The DDA establishes that CIHC would build and operate a thirty (30) unit senior affordable rental housing complex project. Under the terms of the DDA, the former CDA entered into a long-term ground lease of the properties for $1 per year for fiftyfive years. Additionally, the DDA provided a portion of the financing for the project in the form of a loan in the amount of $3,492,591. This loan is forgivable as long as CIHC complies with all terms and covenants included in the DDA during the fifty-five-year term of the agreement (commencing from occupancy of the first residential tenants). At the end of the ground lease, the land, improvements, and any remaining amount in the residual receipts account will revert to ownership by the City.

Because the probable amount of future payments on the loan, or the timing of payments on the loan, could not be estimated with reasonable certainty, the disbursement to CICH was recorded as an expenditure. A loan receivable from CICH has been recorded with an offset to allowance for uncollectible account receivables.

The loan has a stated annual interest rate of 3.00%, which was below the estimated incremental borrowing rate of the former CDA of 5.00%. Interest is accrued on an annual basis at 5.00% and added to the loan receivable and allowance for uncollectible account receivables. If the loan is forgiven, the loan receivable will be written-off. At such time as principal payments are received on the loan in future years, the allowance for uncollectible account receivables will be reduced and revenue will be recognized in the amount of the principal payments received.

On June 30, 2023, the present value of the loan receivable and accrued interest (at 3.00%) had increased to $1,597,292 and $1,747,635, respectively.

Coronado Interfaith Housing Corporation Affordable Housing Loan- 525 Orange Ave.:

On July 2, 2007, the former CDA entered into a DDA with CIHC regarding the rehabilitation and operation of affordable rental property owned by the former CDA at 525 Orange Avenue.

The DDA establishes that CIHC would rehabilitate and operate an affordable rental-housing complex on the property. Under the terms of the DDA, the former CDA entered into a longterm ground lease of the properties for $20,000 per year for fifty-five years. Additionally, the DDA provided a portion of the financing for the project in the form of a forgivable loan in the amount of $2,067,066. This loan is forgivable if CIHC complies with all terms and covenants included in the DDA during the fifty-five-year term of the agreement (commencing from occupancy of the first residential tenants). At the end of the ground lease, the land, improvements, and any remaining amount in the residual receipts account will revert to ownership by the City.
57 Attachment 1
City of Coronado Page 412

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 3: NOTES RECEIVABLE (Continued):

Because the probable amount of future payments on the loan, or the timing of payments on the loan, could not be estimated with reasonable certainty, the disbursement to CICH was recorded as an expenditure. A loan receivable from CICH has been recorded with an offset to allowance for uncollectible account receivables. The loan has a stated annual interest rate of 3.00%, which was below the estimated incremental borrowing rate of the former CDA of 4.72%. Interest is accrued on an annual basis at 4.72% and added to the loan receivable and allowance for uncollectible account receivables. If the loan is forgiven, the loan receivable will be writtenoff. At such time as principal payments are received on the loan in future years, the allowance for uncollectible account receivables will be reduced and revenue will be recognized in the amount of the principal payments received. On June 30, 2023, the present value of the loan receivable and accrued interest (at 3.00%) had increased to $1,046,416 and $935,277, respectively.

San Diego Interfaith Housing Corporation – Orange Villas:

In August 2008, the former CDA entered into a DDA with San Diego Interfaith Housing Corporation (SDIHC) regarding affordable housing construction at 440-450 Orange Avenue, substantial rehabilitation at 225 Orange Avenue, and subsequent operation of both properties.

The DDA establishes that SDIHC would construct, rehabilitate, and operate affordable housing complexes on the properties.

Under the terms of the DDA, the former CDA entered into a long-term ground lease of the properties for $1 per year for ninety-nine years. Additionally, the DDA provided a portion of the financing for the project in the form of a forgivable loan of $2,870,000 for a term of ninetynine years. This loan is forgivable as long as SDIHC complies with all terms and covenants included in the DDA upon the fifty-fifth anniversary of the Housing Assistance Note. At the end of the ground lease, the land, improvements, and any remaining amount in the residual receipts account will revert to ownership by the City.

Because the probable amount of future payments on the loan, or the timing of payments on the loan, could not be estimated with reasonable certainty, the disbursement to SDICH was recorded as expenditures. A loan receivable from SDICH has been recorded with an offset to allowance for uncollectible account receivables. The loan has a stated interest rate of 3.00%, which was below the estimated incremental borrowing rate of the former CDA of 4.50%.

Therefore, the balance of the note has been discounted based on the 4.50% rate (present value).

Interest is accrued on an annual basis at 4.50% and added to the loan receivable and allowance for uncollectible account receivables. If the loan is forgiven, the loan receivable will be writtenoff. At such time as principal and interest payments are received on the loan in future years, the allowance for uncollectible account receivables will be reduced and revenue will be recognized in the amount of the principal and interest payments received. 58 Attachment 1
City of Coronado Page 413

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 3: NOTES RECEIVABLE (Continued):

On June 30, 2023, the present value of the loan receivable and accrued interest (at 3.00%) had increased to $1,518,930 and $1,048,316, respectively.

Coronado Interfaith Housing Corporation Building Loan – 525 Orange Ave.:

On June 19, 2007, the former CDA entered into a DDA with CIHC. Under the DDA, a promissory note in the amount of $800,000 was given as part of an agreement dated December 19, 2007. The loan has a stated annual interest rate of 4.72% with repayment of principal and interest in annual installments equal to available revenues derived from the Project after payment of operation and maintenance expenses and Ground Lease Payments. The first payment was due on the first anniversary of the commencement date and the final payment in the amount of the unpaid note to be paid on the fifty-fifth anniversary. On June 30, 2023, the loan receivable balance was unchanged while accrued interest was $478,656.

Feast and Fareway Notes:

On April 5, 2019, the City entered into a loan agreement with Feast and Fareway LLC, the operator of the City’s Golf Course Restaurant. Under the loan agreement, promissory notes in the amount of $400,000 on April 5, 2019, and $300,000 on May 1, 2019 were executed to provide funding for capital improvements in the Golf Course’s kitchen. Under the terms of the promissory notes, Feast and Fareway will make interest only payments for the first two years of each note at the interest rate of 4.4% annually. The $400,000 note’s interest-only payment in the amount of $1,467 is due monthly until April 1, 2021.

The $300,000 note’s interest-only payment in the amount of $1,100 is due monthly until May 1, 2021. Due to the impact of Covid-19 pandemic, the two notes were combined into one note for $700,000 with the same interest rate of 4.4% annually, interest-only payments were deferred to June 2020, and deferred again to July 2021. On June 30, 2023, the loan receivable balance had decreased to $616,875 including deferred interest of $38,500.

Note 4: LOANS TO SUCCESSOR AGENCY:

The initial consolidated promissory note between the City and Successor Agency of $28,326,552 was approved by the California Department of Finance as an enforceable obligation in fiscal year 2014-15, and the previous allowance for uncollectible account has been removed. In October 2018, the Successor Agency refinanced its enforceable obligations, including loans to the City, by issuing Tax Allocation Refunding Bonds series 2018. All consolidated loans from the City to the Successor Agency were refinanced except for the LifeGuard Tower Improvement loan, which was created in 2001, and had a balance plus accrued interest of $75,632 on December 31, 2013. The loan is payable bi-annually in June and December of each year in the amount of $2,785 for 17 years, with an interest rate of 5%. As of June 30, 2023, the loan receivable balance was $52,783. For details on the loans to the Successor Agency, see Note 19.
59 Attachment 1
City of Coronado Page 414

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 5: LEASES RECEIVABLE:

Governmental Activities
As of June 30, 2023, the City has two cell tower leases for easements located throughout Coronado and one restaurant lease for the Bluewater Grill. The interest rates for each cell tower lease and the restaurant lease are 5.0%. The initial lease agreement terms are 52 months and 21 months for the two cell tower leases, and 71 months for the restaurant lease. The total amount of lease revenue recognized in the current reporting period from leases is $326,935 and the total amount of interest received related to the leases was $98,785. The balance of the lease receivable at June 30, 2023 is $1,787,384. The City has a deferred inflow of resources associated with these leases that will be recognized as revenue over the lease term. The balance of the deferred inflow of resources at June 30, 2023 is $1,704,999.

Business-type Activities
As of June 30, 2023, the Golf Course Fund has two cell tower leases for easements located on the golf course and one restaurant lease for the Feast and Fareway Restaurant. The interest rate for each lease is 5.0%. The initial lease agreement terms are 81 and 91 months for the cell tower leases, and 148 months for the restaurant lease. The total amount of lease revenue recognized in the current reporting period from leases is $201,012 and the total amount of interest received related to the leases was $99,567.

The balance of the lease receivable at June 30, 2023 is $1,916,239. The City has a deferred inflow of resources associated with these leases that will be recognized as revenue over the lease term. The balance of the deferred inflow of resources at June 30, 2023 is $1,780,568.

Note 6: INTER-FUND TRANSACTIONS:

Advances To/From Other Funds:

In 2015, the General Fund made a long-term advance to the Storm Drain Enterprise Fund to defease the storm drain bonds. The storm drain enterprise fund is making a quarterly payment of $75,369 consisting of principal and interest of 3.2% annually. The last payment to pay off the advances will be on December 1, 2026.

In 2019 and 2020, the General Fund loaned $4,000,000 and $1,050,000, respectively, in cash to the Wastewater Fund to pay for the design and construction of the sewer connection project.

Funds - Reported Advances to
Funds - Reported Advances
from Amount
General Fund Storm Drain Enterprise Fund $ 994,460
General Fund Wastewater Enterprise Fund 4,118,805
Capital Projects Funds Wastewater Enterprise Fund 14,300,000 Total $ 19,413,265
60 Attachment 1
City of Coronado Page 415

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 6: INTER-FUND TRANSACTIONS (Continued):

The actual project costs were $4,649,634, accordingly, the Wastewater Fund returned $400,366 to the General Fund in June 2021. On June 15, 2021, the City Council approved the repayment of the loan on 15 annual installments starting on June 30, 2022, with an interest rate of 2.339% annually.

On June 15, 2021, the City Council authorized a long-term advance to the Wastewater Enterprise Fund for the Parker Pump Station Replacement Project. The Parker Pump Station Replacement Project includes construction of a new sanitary sewer and storm drain pump station at 800 Coronado Avenue with an above-ground control building. This advance will be repaid from future sewer charges received from customers.

Inter-fund Transfers:

The $2,913,166 was transferred from the General Fund to the Capital Projects Fund to provide working capital and funding for capital projects. The $61,143 was transferred from the General Fund to the Other Governmental Fund to cover operational expenses. The $820,220 was from the General Fund to the Storm Drain Enterprise Fund to cover operational expenses. The $209,733 was transferred from the Storm Drain Fund to the General Fund for fixed assets.

Transfers Out:

Transfers In: General Fund Storm Drain
General Fund $ - $ 209,733
Capital Project Funds 2,913,166 -
Other Governmental Fund 61,143 -
Storm Drain Enterprise 820,220 -
Total $ 3,794,529 $ 209,733
61 Attachment 1
City of Coronado Page 416

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 7: CHANGES IN CAPITAL ASSETS:

A summary of changes in capital assets for the year ended June 30, 2023, is as follows:

Balance Balance
June 30, 2022 Additions (Deletions) June 30, 2023
Governmental Activities:

Capital Assets Not Being Depreciated:

Land $ 33,127,316 $ - $ - $ 33,127,316
Art and collections 1,828,898 - - 1,828,898
Construction in progress 4,045,448 828,250 (1,674,395) 3,199,303 Total Capital Assets Not Being Depreciated 39,001,662 828,250 (1,674,395) 38,155,517 Capital Assets Being Depreciated:

Buildings 69,143,633 1 - 69,143,634
Improvements other than buildings 21,927,926 1 - 21,927,927 Infrastructure 55,332,224 1,674,396 - 57,006,620
Vehicles and equipment 18,590,766 834,932 (655,511) 18,770,187 Right to use assets - vehicles and equipment - 58,471 - 58,471 Right to use assets - SBITA Assets* 11,636 642,834 - 654,470 Total Capital Assets Being Depreciated 165,637,383 2,579,437 (655,511) 167,561,309 Less Accumulated Depreciation:

Buildings 22,609,979 1,383,059 - 23,993,038
Improvements other than buildings 8,290,118 771,345 - 9,061,463 Infrastructure 30,125,388 1,354,771 - 31,480,159
Vehicles and equipment 12,559,246 1,262,808 (653,658) 13,168,396 Right to use assets - vehicles and equipment - - 7,047 7,047 Right to use assets - subscriptions - 152,564 - 152,564 Total Accumulated Depreciation 73,584,731 4,771,983 (653,658) 77,862,667 Net Capital Assets Being Depreciated 92,052,652 (2,192,546) (1,853) 89,698,642 Net Capital Assets - Governmental Activities $ 131,054,314 $ (1,364,296) $ (1,676,248) $ 127,854,159 * Beginning balance restated due to implementation of Statement No. 96, Subscription-Based Information Technology Arrangements. See note 21.
62 Attachment 1
City of Coronado Page 417

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 7: CHANGES IN CAPITAL ASSETS (Continued):

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

Governmental Activities:

General government $ 1,314,318
Public safety 1,110,359
Construction and maintenance 782,798
Planning and building services 14,401
Culture and leisure 1,550,107
Total Governmental Activities $ 4,771,983
Business-Type Activities:

Wastewater Utility $ 1,193,221
Golf Course 234,126
Storm Drain 226,000
Total Business-Type Activities $ 1,653,347
Balance Balance
June 30, 2022 Additions (Deletions) June 30, 2023
Business-Type Activities:

Capital Assets Not Being Depreciated:

Construction in progress $ 4,504,312 $ 5,898,943 $ - $ 10,403,255 Total Capital Assets Not Being Depreciated 4,504,312 5,898,943 - 10,403,255 Capital Assets Being Depreciated:

Buildings 6,227,551 1 - 6,227,552
Improvements other than buildings 51,893,787 - (2) 51,893,785 Infrastructure 9,120,083 - - 9,120,083
Vehicles and equipment 15,149,049 83,642 (348,550) 14,884,141 Right to use assets - vehicles and equipment 51,742 26,291 - 78,033 Total Capital Assets Being Depreciated 82,442,212 109,934 (348,552) 82,203,594 Less Accumulated Depreciation:

Buildings 2,846,580 132,642 - 2,979,222
Improvements other than buildings 29,633,282 884,760 - 30,518,042 Infrastructure 946,463 304,336 - 1,250,799
Vehicles and equipment 8,217,075 324,774 (138,812) 8,403,037 Right to use assets - vehicles and equipment 6,899 6,835 - 13,734 Total Accumulated Depreciation 41,650,299 1,653,347 (138,812) 43,164,834 Net Capital Assets Being Depreciated 40,791,913 (1,543,413) (209,740) 39,038,760 Net Capital Assets - Business-Type Activities $ 45,296,225 $ 4,355,530 $ (209,740) $ 49,442,015 63 Attachment 1
City of Coronado Page 418

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 8: LONG-TERM DEBT OBLIGATIONS:

Governmental Activities – Long-Term Debt:

A summary of changes in governmental activities long-term debt at June 30, 2023, is as follows:
a. Compensated Absences:

This liability represents the total unpaid vacation and compensation time earned by employees of the City in its General and special revenue funds to be paid from future resources. Compensated absences are reported in governmental funds only if they have matured.
b. Workers’ Compensation and General Liability Claims:

See Note 9 detailing claims and judgements. The total Workers’ Compensation and claims liability at June 30, 2023 was $9,041,721.
c. Lease Payable:

In Fiscal Year 2022-23, the City entered into a 36-month lease as lessee for the use of a 2022 Ford F-150 and a 2022 Ford Maverick. An initial lease payable was recorded in the amount of $58,471. As of June 30, 2023, the value of the lease liability is $51,971. The City is required to make monthly fixed payments of $894 and $824 for the Ford F150 and Ford Maverick, respectively. The lease on the Ford Maverick has an interest rate of 8.49 percent. The lease on the Ford F150 does not have an interest rate. The vehicles’ estimated useful life was 60 months as of the contract commencement.

Balance Balance Due Within
June 30, 2022 Additions Reductions June 30, 2023 One Year Compensated Absences $ 2,622,570 $ 1,918,244 $ (1,589,186) $ 2,951,628 $ 1,507,006 Claims and Judgements 7,820,606 2,045,738 (824,623) 9,041,721 3,270,142 Lease Payable - 58,471 (6,500) 51,971 19,090
Subscription-Based IT Payable* 642,834 11,636 (163,657) 490,813 124,414 Total Government-Wide
Governmental Activities $ 11,086,010 $ 4,034,089 $ (2,583,966) $ 12,536,133 $ 4,920,652 * Beginning balance restated due to implementation of Statement No. 96, Subscription-Based Information Technology Arrangements. See note 21.
64 Attachment 1
City of Coronado Page 419

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 8: LONG-TERM DEBT OBLIGATIONS (Continued):
c. Lease Payable (continued):

The annual debt service requirements for the lease outstanding at June 30, 2023 are as follows:
d. Subscription-Based IT Payable:

The City has entered into 6 subscription-based IT arrangements for various software applications and is required to make annual principal and interest payments over the arrangement terms as noted in the table below. The payable at June 30, 2023, was $490,813.

The future principal and interest lease payments as of June 30, 2023, are as follows:

Year Ending
June 30 Principal Interest Total
2024 $ 19,090 $ 1,526 $ 20,855
2025 19,830 786 20,616
2026 13,051 94 12,906
$ 51,971 $ 2,406 $ 54,377
Software
Term in
Months
Interest
Rate
Annual
Payments
Subscription
Liability
Subscription
Asset
FirstWatch Software Program 38 5.00% $ 2,307 $ 4,911 $ 6,918 TeleStaff Software 60 5.00% 2,427 9,254 11,125
Lexipol Software 60 5.00% 11,089 42,731 53,820
SanGIS Software 32 5.00% 1,650 3,068 4,718
ARJIS Software 60 5.00% 38,698 134,383 173,081
AXON Software 47 5.00% 108,342 296,466 404,808
$ 164,513 $ 490,813 $ 654,470
Year Ending
June 30 Principal Interest Total
2024 $ 124,414 $ 21,971 $ 146,385
2025 147,652 18,266 165,918
2026 152,171 10,920 163,091
2027 66,576 3,284 69,860
Total $ 490,813 $ 54,441 $ 545,254
65 Attachment 1
City of Coronado Page 420

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 8: LONG-TERM DEBT OBLIGATIONS (Continued):

Business-Type Activities – Long-Term Debt:

A summary of the changes in business-type activities long-term debt at June 30, 2023 is as follows:
a. Lease Payable:

In Fiscal Year 2022-23, the City entered into a 36-month lease as lessee for the use of a 2022 Ford Maverick. An initial lease payable was recorded in the amount of $26,291. As of June 30, 2023, the value of the lease liability is $21,728. The City is required to make monthly fixed payments of $824. The lease has an interest rate of 8.49 percent. The vehicle’s estimated useful life was 60 months as of the contract commencement.

The annual debt service requirements for the lease outstanding at June 30, 2023 are as follows:

Note 9: SELF – INSURANCE
For liability insurance coverage, the City is a member of the California State Association of Counties Excess Insurance Authority (CSAC-EIA), a consortium of various California public entities. Each member entity pays an annual premium. Losses exceeding a member city’s selfinsured retention are paid by the pool or by a commercial excess insurance company.

For worker’s compensation insurance coverage, the City is a member of the Local Agency Workers’ Compensation Excess Joint Powers Authority (LAWCX). Each member city pays an annual premium. Losses exceeding a member city’s self-insured retention are paid by LAWCX up to $5,000,000 and by a commercial insurance company for losses from $5,000,000 to the statutory limit. The self-insured retentions and maximum coverage are:

Year Ending
June 30 Principal Interest Total
2024 $ 8,362 $ 1,526 $ 9,888
2025 9,102 786 9,888
2026 4,264 94 4,358
$ 21,728 $ 2,406 $ 24,314
Balance Balance Due Within
June 30, 2022 Additions Reductions June 30, 2023 One Year Compensated Absences $ 217,270 $ 92,293 $ (101,472) $ 208,091 $ 136,803 Lease Payable - 26,291 (4,563) 21,728 8,362
Total Government-Wide
Business-Type Activities $ 217,270 $ 118,584 $ (106,035) $ 229,819 $ 145,165 66 Attachment 1
City of Coronado Page 421

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 9: SELF – INSURANCE (Continued):

The City has entered into contracts with a servicing agent who administers the workers’ compensation claims program. Settled claims have not exceeded any of the City’s coverage amounts in any of the last four fiscal years and there were no reductions in the City’s insurance coverage during the year ended June 30, 2023. Claims expenditures and liabilities are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported.

The City has accrued its anticipated liability with respect to claims filed and claims incurred but not reported to the City as of year-end in the General Fund. Changes in the aggregate liability for claims for the years ended June 30, 2022 and 2023 are as follows:

The ultimate amount of losses incurred through June 30, 2023, is dependent on future developments. Based upon information from the City Attorney, the City’s claim administrators and others involved with the administration of the insurance programs, City management believes the accrual is adequate to cover such losses. General liability and workers’ compensation claims are paid out of the General Fund. For the year ended June 30, 2023, the City incurred a total of $1,205,481 in expenses for workers’ compensation.

Workers' General
Compensation Liability Total
Liability as of June 30, 2021 $ 6,475,988 $ 770,700 $ 7,246,688 Claims and changes in estimates
during the year ended June 30, 2022 1,876,477 - 1,876,477 Claims payments during the year
ended June 30, 2022 (1,037,293) (265,266) (1,302,559)
Liability as of June 30, 2022 7,315,172 505,434 7,820,606 Claims and changes in estimates
during the year ended June 30, 2023 1,205,481 840,257 2,045,738 Claims payments during the year
ended June 30, 2023 (824,623) - (824,623)
Liability as of June 30, 2023 $ 7,696,030 $ 1,345,691 $ 9,041,721 Self-Insured Excess Coverage Above
Per Occurrence Self-Insurance Retention
Public Liability $ 250,000 $ 50,000,000
Workers' Compensation 500,000 Statutory Amount
67 Attachment 1
City of Coronado Page 422

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 10: PENSION PLAN OBLIGATIONS:

Plan Descriptions:

All qualified non-public safety permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan, an agent multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers.

All qualified safety employees are eligible to participate in the City’s Safety Plan, a costsharing multiple-employer defined benefit pension plan administered by CalPERS, which acts as a common investment and administrative agent for its participating member employers.

Benefit provisions for the Plans are established by State statutes and City resolution. Copies of the PERS’ annual investment report may be obtained online at www.calpers.ca.gov.

Benefits Provided:

CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits.

All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. 68 Attachment 1
City of Coronado Page 423

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 10: PENSION PLAN OBLIGATIONS (Continued):

The Plan provisions and benefits in effect at June 30, 2023 are summarized as follows:

Employees Covered:

At June 30, 2022, the measurement date, the following employees were covered by the benefit terms of the Miscellaneous plan:

Tier 1 PEPRA*
Hire Date Prior to January 1, 2013 January 1, 2013 and after Benefit formula 3.0% @ 60 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Minimum retirement age 50 52
Monthly benefits, as % of eligible compensation 2.0% to 3.0% 1.0% to 2.5% Required employee contribution rates 9.50% 6.75%
Required employer contribution rates - Normal Cost 12.230% 12.230% Required employer payment of Unfunded Liability $2,434,094 - Miscellaneous Plan
Active members 171
Transferred members 96
Terminated members 158
Retired members and beneficiaries 231
Total 656
Tier 1 PEPRA*
Hire Date Prior to January 1, 2013 January 1, 2013 and after Benefit formula 3.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Minimum retirement age 50 50
Monthly benefits, as % of eligible compensation 3.0% 2.0 to 2.7% Required employee contribution rates 10.50% 13.00%
Required employer contribution rates - Normal Cost 23.750% 12.780% Required employer payment of Unfunded Liability $2,657,023 $8,060 * PEPRA is the Public Employees' Pension Reform Act that went into effect on January 1, 2013.

Safety Cost-Sharing Plan
69 Attachment 1
City of Coronado Page 424

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 10: PENSION PLAN OBLIGATIONS (Continued):

At June 30, 2022, the measurement date, the following employees were covered by the benefit terms of the Safety plan:

Contribution Description:

Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process.

The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability.

The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

For the year ended June 30, 2023, the employer contributions recognized as a reduction to the net pension liability for all the Plans was $7,505,975.

Net Pension Liability:

The net pension liability is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2021, using an annual actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Methods and Assumptions Used to Determine Total Pension Liability:

For the measurement period ended June 30, 2022, the total pension liability was determined by rolling forward the June 30, 2021 total pension liability. The June 30, 2022 total pension liabilities were based on the following actuarial methods and assumptions:

Active members 77
Transferred members 27
Terminated members 21
Retired members and beneficiaries 150
Total 275
70 Attachment 1
City of Coronado Page 425

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 10: PENSION PLAN OBLIGATIONS (Continued):
(1) The mortality table was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019.

Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website.

Discount Rate:

The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

Long-term Expected Rate of Return:

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both shortterm and long-term market return expectations. Using historical returns of all of the funds’ asset classes, expected component (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

Actuarial Cost Method Entry Age Actuarial Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increase Varies by entry age and service
Mortality Rate Table (1) Derived using CalPERS' membership data for all funds Post Retirement Benefit
Increase
The lesser of contract COLA up to 2.30% until
purchasing power protection allowance floor on
purchasing power applies, 2.30% thereafter
71 Attachment 1
City of Coronado Page 426

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 10: PENSION PLAN OBLIGATIONS (Continued):

Miscellaneous Safety Total
Net Pension Liabilities $ 27,847,063 $36,067,520 $ 63,914,583 Deferred Outflows of Resources 11,555,973 19,025,148 30,581,121 Deferred Inflows of Resources 483,586 3,778,129 4,261,715 Pension Expense/ (Income) 3,554,564 4,063,757 7,618,321 Asset Class 1
Assumed Asset
Allocation
Real Return
1,2
Global Equity - Cap-weighted 30.00% 4.54%
Global Equity - Non-Cap-weighted 12.00 3.84
Private Equity 13.00 7.28
Treasury 5.00 0.27
Mortgage-backed Securities 5.00 0.50
Investment Grade Corporates 10.00 1.56
High Yield 5.00 2.27
Emerging Market Debt 5.00 2.48
Private Debt 5.00 3.57
Real Assets 15.00 3.21
Leverage '(5.00) (0.59)
(1) An expected inflation of 2.30% used for this period. (2) Figures are based on the 2021 Asset Liability Management study.

Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions:

The information in the following table includes the aggregate total pension related items for the Miscellaneous and Safety plans.
72 Attachment 1
City of Coronado Page 427

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 10: PENSION PLAN OBLIGATIONS (Continued):

The following table shows the changes in net pension liability recognized over the measurement period for the Miscellaneous Plan.

The following table shows the Safety Plan’s proportionate share of the changes in net pension liability recognized over the measurement period.

The City’s net pension liability for the Safety Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Safety Plan is measured as of June 30, 2022, and the total pension liability for the Safety Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021, rolled forward to June 30, 2022, using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers actuarially determined. The City’s proportionate share of the net pension liability for the Safety Plan as of June 30, 2022 and 2023, was as follows:

Proportion FY 2021-22 0.47804%
Proportion FY 2022-23 0.52488%
Change - Increase (Decrease) 0.04684%
Safety Cost-Sharing Plan
Total Pension
Liability
(a)
Plan Fiduciary Net
Position
(b)
Net Pension
Liability/(Asset)
(c)=(a)-(b)
Balance at June 30, 2021 (Valuation Date) $ 120,267,771 $ 110,585,920 $ 9,681,851 Changes Recognized for the Measurement Period:

Service Cost 2,574,363 - 2,574,363
Interest on the Total Pension Liability 8,408,304 - 8,408,304 Difference between Expected and Actual Experience (637,953) - (637,953) Change of Assumptions 4,006,832 - 4,006,832
Contribution from Employer - 3,532,170 (3,532,170)
Contribution from Employees - 1,091,989 (1,091,989)
Net Investment Income - (8,368,937) 8,368,937
Benefit Payments, Including Refunds of Employee Contributions (6,128,698) (6,128,698) - Administrative Expense - (68,888) 68,888
Net Changes During 2021-22 8,222,848 (9,942,364) 18,165,212 Balance at June 30, 2022 (Measurement Date) $ 128,490,619 $ 100,643,556 $ 27,847,063 Increase (Decrease)
Total Pension
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net Pension
Liability/(Asset)
(c)=(a)-(b)
Balance at June 30, 2022 $ 127,348,219 $ 110,571,361 $ 16,776,858 Balance at June 30, 2023 136,163,357 100,095,837 36,067,520 Net Change During FY 2022-23 $ 8,815,138 $ (10,475,524) $ 19,290,662 Safety Plan Proportionate Share
73 Attachment 1
City of Coronado Page 428

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 10: PENSION PLAN OBLIGATIONS (Continued):

Sensitivity of the Net Pension Liability to Changes in the Discount Rate:

The following presents the net pension liability/(asset) of the Plans as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability/(asset) would be if it were calculated using a discount rate that is one percentage-point lower (5.90 percent) or one percentage-point higher (7.90 percent) than the current rate:

Amortization of Deferred Outflows and Deferred Inflows of Resources:

Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense.

The amortization period differs depending on the source of the gain or loss:

Pension Plan Fiduciary Net Position:

The plan fiduciary net position disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. First, for the accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary self-insurance expense included as assets. These amounts are excluded for rate setting purposes in the funding actuarial valuation. In addition, differences may result from early Annual Comprehensive Financial Report closing and final reconciled reserves. Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information.

Discount Rate -1%

5.90%
Current Discount
Rate 6.90%
Discount Rate +1%

7.90%
Miscellaneous Plan $ 45,175,038 $ 27,847,063 $ 13,573,560 Safety Plan 54,871,467 36,067,520 20,699,542
Total Net Pension Liability $ 100,046,505 $ 63,914,583 $ 34,273,102 Net difference between projected and actual
earnings on pension plan investments
5 year straight-line amortization
All other amounts Straight-line amortization over the
expected average remaining service
lifetime (EARSL), of all members that are
provided with benefits (active, inactive,
and retired), as of the beginning of the
measurement period.
74 Attachment 1
City of Coronado Page 429

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 10: PENSION PLAN OBLIGATIONS (Continued):

For the measurement period ending June 30, 2022 (the measurement date), the City incurred pension expense of $3,554,564 for the Miscellaneous Plan, and pension expense of $4,063,757 for the Safety Plan.

As of June 30, 2023, the following were the reported deferred outflows of resources and deferred inflows of resources related to all pension plans:

Contributions subsequent to the measurement date in the amount of $8,249,708 are reported as deferred outflows of resources and will be recognized as a reduction of the net pension liability in the fiscal year ending June 30, 2024. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Outflow of
Resources
Inflow of
Resources
Outflow of
Resources
Inflow of
Resources
Outflow of
Resources
Inflow of
Resources
Current year contributions that occurred after the
measurement date of June 30, 2022 $ 3,902,303 $ - $ 4,347,405 $ - $ 8,249,708 $ - Change of assumption 2,575,821 - 3,636,698 - 6,212,519 - Difference between expected and actual experience - 483,586 1,492,704 391,665 1,492,704 875,251 Net difference between projected and actual
earnings on pension plan investments 5,077,849 - 5,695,566 - 10,773,415 - Differences between employer's contributions and
proportionate share of contributions - - - 3,386,464 - 3,386,464 Difference in proportionate share - - 3,852,775 - 3,852,775 - Total $ 11,555,973 $ 483,586 $19,025,148 $ 3,778,129 $30,581,121 $ 4,261,715 Miscellaneous Plan Safety Plan Total Deferred:

Measurement
Period Ended June
30:

Deferred
Outflows/(Inflows) of
Resources for
Miscellaneous Plan
Deferred
Outflows/(Inflows) of
Resources for Safety
Plan
2023 $ 1,940,899 $ 3,218,977
2024 1,686,878 2,688,583
2025 354,171 1,517,684
2026 3,188,136 3,474,370
2027 - -
Thereafter - -
75 Attachment 1
City of Coronado Page 430

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 11: POST EMPLOYMENT HEALTH BENEFITS:

Plan Description:

The City provides a contribution towards retiree health benefits, which are provided through the Public Employee’s Medical and Hospital Care Act (PEMHCA) and is administered by the board of the California Public Employees Retirement System (CalPERS). It is an agent multiple-employer defined benefit retiree healthcare plan. To be eligible for retiree health benefits, an employee must retire from the City and commence pension benefits under CalPERS (typically on or after age 50 with at least five years of PERS eligible service). The scheduled required employer contributions for each eligible retiree under the CalPERS Health Plan are $151 per month per employee at the end of fiscal year 2022-23.

Employees Covered:

As of the June 30, 2021 actuarial valuation, the following current and former employees were covered by the benefit terms of the City’s OPEB plan:

Contributions:

PEMHCA establishes required minimum contribution amounts for contracting agencies to provide for participating active and retired members. It further establishes that the contribution amount be adjusted annually to reflect any changes in the medical care component of the CPIU and rounded to the nearest dollar. For calendar years 2022 and 2023, the monthly contribution amounts for retired annuitants were $149 and $151, respectively. The City provides the minimum required contribution amount for retired annuitants. Retired annuitants who elect to participate in this program select coverage from among an array of offered health plans and pay the difference between the City’s minimum contribution and the monthly cost of coverage. For the fiscal year ended June 30, 2023, the City’s cash contributions were $0. In fiscal year 2013-14, the City established an Internal Revenue Services Section 115 Irrevocable Trust with the Public Agency Retirement Services to stabilize future OPEB obligations.

Net OPEB Liability:

The City’s net OPEB liability was measured as of June 30, 2022 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021. The following actuarial methods and assumptions were used in the actuarial valuation:

Inactive plan members or beneficiaries currently receiving benefits 70 Inactive plan members entitled to but not receiving benefits 0 Active plan members 253
Total 323
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NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 11: POST EMPLOYMENT HEALTH BENEFITS (Continued):
(1) Mortality rates are based on:

Miscellaneous – 2017 CalPERS Mortality for Miscellaneous and Schools Employees Mortality Tables
Police – 2017 CalPERS Mortality for Safety Employees Mortality Tables Miscellaneous – 2017 CalPERS Mortality for Safety Employees Mortality Tables (2) Pre-Retirement Turnover is according to the termination rates under the 2017 experience study for the CalPERS pension plan. The experience study reports may be accessed on the CalPERS website www.calpers.ca.gov under forms and publications.

The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan's target asset allocation as of June 30, 2022 are summarized in the following table:

Actuarial Assumptions:

Discount Rate 5.26%
Inflation 2.50%
Salary Increases 2.75%
Investment Rate of Return 5.26%
Mortality Rate (1) Derived using CalPERS' membership
data for all funds
Pre-Retirement Turnover (2) According to the termination rates under the 2017 experience study for the
CalPERS pension plan.

Healthcare Trend Rate 4.00%
Asset Class
Target
Allocation
Long-term
Expected Real
Rate of Return
All US Domestic Stock 60.0% 7.545%
Long-Term Corporate Bonds 40.0% 5.045%
Total 100.0%
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NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 11: POST EMPLOYMENT HEALTH BENEFITS (Continued):

Discount Rate:

The discount rate used to measure the total OPEB liability was 5.26%. The projection of cash flow used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates.

Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability. The City does not currently have a pre-funding policy or practice for additional prefunding but also does not reimburse its current retiree payments from the 115 Trust. The projection of cash flows used to determine the discount rate assumed that no future pre-funding contributions are made to the 115 Trust.

Changes in OPEB Liability:

The changes in the net OPEB liability for the City’s plan were as follow:

Total OPEB
Liability
(a)
Plan Fiduciary
Net Position
(b)
Net OPEB
Liability/(Asset)
(c) = (a) - (b)
Balance at June 30, 2021 (Measurement Date) $ 5,693,622 $ 3,527,010 $ 2,166,612 Changes recognized for measurement period:

Service cost 210,225 - 210,225
Interest 325,299 - 325,299
Changes of assumptions 341,170 - 341,170
Benefit payments, including refunds for member contributions (282,725) - (282,725) Plan fiduciary net position:

Contributions - employer - 282,725 (282,725)
Net investment income - (466,986) 466,986
Benefit payments, including refunds of member contributions - (282,725) 282,725 Administrative expenses - (16,385) 16,385
Net Changes During FY 2021-22 593,969 (483,371) 1,077,340 Balance at June 30, 2022 (Measurement Date) $ 6,287,591 $ 3,043,639 $ 3,243,952 Increase (Decrease)
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NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 11: POST EMPLOYMENT HEALTH BENEFITS (Continued):

Sensitivity of the Net OPEB Liability to Changes in the Discount Rate:

The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:

Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates:

The following presents the Net OPEB liability of the City if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2022:

OPEB Plan Fiduciary Net Position:

The OPEB Plan Fiduciary Net Position is issued by PARS through their financial statements, which are publicly available and can be obtained by contacting PARS online at www.pars.org.

Amortization of Deferred Outflows and Deferred Inflows of Resources:

Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. Deferred Outflows / (Inflows) of Resources represents the following items that have not been recognized in the OPEB Expense:

1. Differences between expected and actual experience of the OPEB plan.

2. Changes of assumptions.

3. Differences between projected and actual earnings in OPEB plan investments (for funded plans only).

Discount Rate -
1%

4.26%
Current
Discount Rate

5.26%
Discount rate
+1%

6.26%
Net OPEB Liability $ 4,009,622 $ 3,243,952 $ 2,587,747
1% Decrease

3.0%
Current
Healthcare
Cost Trend
Rates

4.0%
1% Increase

5.0%
Net OPEB Liability $ 2,439,951 $ 3,243,952 $ 4,283,403
79 Attachment 1
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NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 11: POST EMPLOYMENT HEALTH BENEFITS (Continued):

The initial amortization period for the first two items noted above is based on expected future service lives while the difference between the projected and actual earnings in OPEB plan investment is amortized over five years. All balances are amortized linearly on a principal only basis and new bases will be created annually for each of the items above.

OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB:

For the fiscal year ended June 30, 2023, the City recognized OPEB expense of $533,118. As of June 30, 2023, the City reported deferred outflows and inflows of resources related to OPEB from the following sources:

The $297,864 reported as deferred outflows related to contributions subsequent to the June 30, 2022 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2024. Other amounts reported as deferred outflows or deferred (inflows) of resources related to OPEB will be recognized as pension expense as follows:

Note 12: DEFERRED COMPENSATION SAVINGS PLAN:

For the benefit of its employees, the City participates in a 457 Deferred Compensation Program. The purpose of this program is to provide deferred compensation for public employees that elect to participate. Eligible employees may defer receipt of a portion of their salary until termination, retirement, death or unforeseeable emergency. As of June 30, 2023, the City contributed $6,000 to the plan.

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
OPEB contributions subsequent to measurement date $ 297,864 $ - Changes of assumptions 767,850 47,297
Differences between expected and actuarial experience 222,269 109,501 Net difference between projected and actual earnings on OPEB plan investments 309,042 -
$ 1,597,025 $ 156,798
Fiscal Year
Ending June 30:

Deferred
Outflows/(Inflows)
of Resources
2024 $ 203,771
2025 195,617
2026 175,701
2027 208,841
2028 74,979
Thereafter 283,454
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NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 12: DEFERRED COMPENSATION SAVINGS PLAN (Continued):

Federal law requires deferred compensation assets to be held in trust for the exclusive benefit of the participants. Accordingly, the City is in compliance with this legislation. Therefore, these assets are not the legal property of the City and are not subject to claims of the City's general creditors. The fair value of the plan assets held in trust by ICMA Retirement Corporation, at June 30, 2023, was $33,030,195. Since the City has little administrative involvement and does not perform the investing function for this plan, the assets and related liabilities are not shown on the statement of net position of the City.

Note 13: LITIGATIONS, COMMITMENTS, AND CONTINGENT LIABILITIES:

At June 30, 2023, the City was involved as a defendant in several lawsuits and claims arising out of the ordinary conduct of its affairs. It is the opinion of management and the City’s legal counsels handling these actions that settlement of these lawsuits and claims, if any, will not have a material effect on the financial position of the City.

Note 14: CONSTRUCTION COMMITMENTS:

The total amount of the outstanding construction commitments at June 30, 2023 was $15,660,318.

Note 15: ECONOMIC DEPENDENCY:

The City collects transient occupancy and sales taxes from various hotels/motels operating within the City. The transient occupancy and sales taxes amounted to 31% of the General Fund’s total revenues for the year ended June 30, 2023.

Note 16: CORONADO TOURISM IMPROVEMENT DISTRICT:

The Coronado Tourism Improvement District (CTID) was established in July 2010 to increase the number of overnight guests at Coronado hotels, in addition to improve revenue for local tourism-based businesses through advertising, marketing and public relations campaigns.

Funding does not come from the City of Coronado, rather it comes from a 0.50% (percent) transient rent assessment of the four largest hotels in Coronado. In July 2011, CTID became a 501(c)(6) non-profit entity, with a nine-person Advisory Board assembled to evaluate, approve, and advise the City of Coronado.

On May 5, 2015, the Coronado Tourism Improvement District II (CTID II) was established to further provide a stable and dedicated source of funding for marketing and promotion efforts that directly benefit the assessed hotels. Similar to the CTID, funding comes from a 0.50% (percent) transient rent assessment of the four largest hotels in Coronado. The CTID II levied assessments became effective July 1, 2015.
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NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 17: TAX ABATEMENTS:

The Mills Act is an economic incentive program in California for the restoration and preservation of qualified historic buildings by private property owners. Enacted in 1972, the Mills Act legislation grants participating local governments the authority to enter into contracts with owners of qualified historic properties who actively participate in the restoration and maintenance of their historic properties while receiving property tax relief.

The Mills Act Program was adopted by the City Council in 2000 by Resolution No. 7736. A fiscal cap was placed on the program to control the lost property tax revenue to the City and former Community Development Agency. The City Council authorized a maximum property tax loss of $15,000 for the “Program Start” and $5,000 additional property tax losses per year for “Program Growth” up to 2005. In August 2004, the City Council voted to increase the annual increment to a $10,000 per year, and in 2007, the City Council voted to increase the dollar amount of new Mills Act Agreements approved annually to $15,000.

At its October 4, 2011 meeting, the City Council adopted Resolution No. 8524 implementing a change to the Mills Act Program that sets the maximum savings that a property owner receives with a Mills Act Agreement at 50% of the current property tax for Mills Act applications received beginning January 1, 2012. As of June 30, 2023, the City has contracts with 190 property owners under the Mills Act provisions. Estimated loss from the Mills Act contracts are as follows:

Note 18: WASTEWATER TREATMENT REFUND:

The City is a participant in the Metropolitan Wastewater Joint Powers Authority (JPA), for wastewater treatment. Pursuant to the terms of the JPA, the City pays an equal quarterly predetermined amount calculated in advance of each fiscal year by the City of San Diego.

Based on actual flow of wastewater and other engineering factors, the City of San Diego reconciles amounts paid by the City to the actual costs incurred, which could result in an additional amount due to or from the City of San Diego. In the current fiscal year, the City did not recognize any revenue for the refund for wastewater treatment costs paid during fiscal year 2018-19. The City is unable to estimate potential refund or amount due to City of San Diego for fiscal years 2019-20, 2020-21, 2021-22 and 2022-23.

Mills Act
Contracted Value Market Value Difference
Estimated Revenue
Loss
$ 166,898,829 $ 471,169,248 $ 304,270,419 $ 950,338
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NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 19: SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT AGENCY:

On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City that previously had reported a community redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a community redevelopment agency, a “successor agency” is to be established to hold the assets until they are distributed to other units of state and local government.

The City Council elected to become the Successor Agency for the former community redevelopment agency in accordance with the Bill.

After enactment of the law, which occurred on June 28, 2011, community redevelopment agencies in the State of California cannot enter into new projects, obligations, or commitments.

Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

Successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former community redevelopment agency until all enforceable obligations of the prior community redevelopment agency have been paid in full and all assets have been liquidated.

Additional information regarding the Successor Agency is as follows:
a. Cash and Investments:

Cash and investments reported in the accompanying financial statements were $29,570,088 as of June 30, 2023. See Note 2 for further information regarding the City’s cash and investments as it also relates to the Successor Agency. b. Capital Assets:

A summary of changes in capital assets for the year ended June 30, 2023, is as follows:

Balance June 30, 2022 $ 17,406,064
Additions:

Current year additions 1,338,928
Balance June 30, 2023 $ 18,744,992
Land Purchase
83 Attachment 1
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CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 19: SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT AGENCY (Continued):
c. Long-Term Debt:

In October 2018, the former CDA issued the 2018 Tax Allocation Refunding Bond (TARB) issue, to advance refund the 2000 Tax Allocation Bond (TAB), 2003 housing TAB, 2003 TAB, 2005 TAB, 2006 TAB, and City loans to the former CDA.

Bond premiums received on the 2018 Tax Allocation Refunding Bond (TARB) issue of $15,135,782 have been added to long-term debt and are being amortized over the remaining life of the TARB issue.

Long-term debt outstanding of the Successor Agency as of June 30, 2023, follows:

Tax Allocation Bonds:
2018 Tax Allocation Refunding Bonds:

On October 4, 2018, the Successor Agency to the former CDA issued $120,920,000 of series 2018 Tax Allocation Refunding Bonds consisting of $57,150,000 of serial bonds and $63,770,000 of term bonds due on September 1, 2033. The proceeds of the bonds were used to advance refund $2,750,000 of the Series 2000 TAB, $8,365,000 of the Series 2003 Housing TAB, $18,775,000 of the Series 2003 TAB, $46,345,000 of the Series 2005 TAB, $28,185,000 of the Series 2006 TARB, and $32,686,488 of the City loans to the former CDA. As a result, the refunded bonds and City loans are considered defeased and the liability has been removed from the Successor Agency column of the Statement of Fiduciary Net Position. The serial bonds pay interest semi-annually at the rate of 5% and mature from September 2019 through September 2026 with principal amounts ranging from $6,460,000 to $8,345,000. The term bonds pay interest semi-annually at the rate of 5% with $63,770,000 maturing on September 1, 2033. The 2018 TARB are term bonds subject to mandatory redemption on September 1 in each year commencing September 1, 2027 from sinking fund payments made by the Successor Agency to the principal account.

The term bonds are also subject to mandatory redemption in inverse order of sinking fund payments on September 1 of each year from excess pledged tax revenues.

Balance Balance
June 30, 2022 Additions Reductions June 30, 2023
Tax Allocation Bonds (TABs):
2018 Refunding Issue $ 92,205,000 $ - $ (12,800,000) $ 79,405,000 $ 7,210,000 Premium 2018 Issue 11,099,574 - (1,009,052) 10,090,522 1,009,052 Total Bond and Premium 103,304,574 - (13,809,052) 89,495,522 8,219,052 Other Debt:

Payable to the City of Coronado 55,608 - (2,825) 52,783 2,967 Total Successor Agency $ 103,360,182 $ - $ (13,811,877) $ 89,548,305 $ 8,222,019 Due Within
One Year
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NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 19: SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT AGENCY (Continued):

The annual requirements to amortize the 2018 TARB at June 30, 2023 are as follows:

The Statement of Fiduciary Net Position reported $784,914 deferred charges on refunding for the old tax allocation bonds that are being amortized over 15 years.

Loans from City of Coronado:

Loans Payoff:

All loans from the City to the former CDA were paid off except for the Life-Guard Tower Improvement Loan, which was created in 2001 and had a balance plus accrued interest of $75,632 on December 31, 2013. The loan is payable bi-annually in June and December of each year in the total amount of $2,785 for 17 years, with an interest rate of 5%. As of June 30, 2023, the loan receivable balance was $52,783. The annual requirements to amortize the Life-guard Tower loan at June 30, 2023, are as follows:

Year Ending June 30, Principal Interest Total
2024 $ 2,967 $ 2,603 $ 5,570
2025 3,117 2,453 5,570
2026 3,275 2,295 5,570
2027 3,441 2,129 5,570
2028 3,615 1,955 5,570
2029 - 2033 21,014 6,836 27,850
2034 - 2036 15,354 1,372 16,726
Total $ 52,783 $ 19,643 $ 72,426
Year Ending June 30, Principal Interest Total
2024 $ 7,210,000 $ 3,790,000 $ 11,000,000
2025 7,565,000 3,420,625 10,985,625
2026 7,945,000 3,032,875 10,977,875
2027 8,345,000 2,625,625 10,970,625
2028 8,840,000 2,196,000 11,036,000
2029-2033 39,500,000 4,034,000 43,534,000
Total $ 79,405,000 $ 19,099,125 $ 98,504,125
85 Attachment 1
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CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 19: SUCCESSOR AGENCY TRUST FOR ASSETS OF THE FORMER REDEVELOPMENT AGENCY (Continued):
d. Insurance:

The Successor Agency is covered under the City’s insurance policies. Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note 9.
e. Commitments and Contingencies:

Owner Participation Agreements:

Village Theater:

In August 2008, the former CDA approved the OPA between the former CDA and the potential operator of the Village Theater. Under the terms of the agreement, up to $2,675,000 was obligated for the purpose of completing the rehabilitation of the theater as a three-screen, first-run movie house. The funding by the former CDA is in the form of a grant/loan that will eventually be forgiven provided that the owner continues to operate within the parameters specified in the agreement. As of June 30, 2023, a total amount of $2,608,978 was disbursed, and no more payment will be made under this term of the agreement. In the OPA, the former CDA agreed to pay an amount equal to the difference between the ad valorem taxes levied on the portion of the property occupied by the Theater with respect to the tax year immediately preceding the date the operator commences operation of the Village Theatre as adjusted annually pursuant to Revenue and Taxation Code Section 51 and ad valorem taxes levied with respect to each tax year commencing with the tax year next following the tax year in which the operator commences operation of the Village Theatre. As of June 30, 2023, the current and total ad valorem taxes paid were $44,363 and $335,129, respectively.

Coronado Hospital Land Acquisition:

In January 2009, the former CDA entered into an agreement with the Coronado Hospital Foundation to purchase $20,083,920 in land over a 15-year period. One-fifteenth interest in the property, equal to $1,338,928, will be acquired each year commencing in 2009 and continuing for fourteen additional years. As of June 30, 2023, the total amount of $18,744,992 was disbursed.

86 Attachment 1
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CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 20: FUND BALANCE:

General
Fund
Capital
Projects
Other
Governmental
Funds
Total
Governmental
Funds
Non-Spendable for the following purposes:

Prepaid costs $ $ - 33,969 $ 18,938 $ 52,907
Notes and loans receivable 1,027,909 - - 1,027,909
Advances given to other funds 5,113,265 - - 5,113,265
Total Non-Spendable 6,175,143 - 18,938 6,194,081
Restricted for the following purposes:

Housing activities - 817,615 - 817,615
City public safety - - 203,805 203,805
Culture & Leisure activities - - 8,262,205 8,262,205
Construction & maintenance - - 2,967,689 2,967,689
Planning & building reserve - - 1,502,140 1,502,140
Capital projects 15,903,112 - 15,903,112 -
City transportation 173,102 - 6,484,017 6,657,119
PEG fees 485,646 - - 485,646
CalPERS stabilization 14,838,792 - 14,838,792 -
Hotel Del Coronado master plan 848,088 - - 848,088
Library endowment (expendable) - - 35,605 35,605
Library endowment (nonexpendable) - - 3,546 3,546
Total Restricted 32,248,740 - 20,276,622 52,525,362
Committed for the following purposes:

Emergency response & economic stabilization - - 31,525,000 31,525,000 Future capital projects 4,000,000 - - 4,000,000
Historic preservation 500,000 - - 500,000
Total Committed 36,025,000 - 36,025,000 -
Assigned to the following purposes:

Planning & building reserve - - 2,206,032 2,206,032
Worker's compensation 4,677,466 - - 4,677,466
Vehicle & IT replacement 5,529,734 - - 5,529,734
Construction & Maintenance 20,463,445 - 20,463,445 -
Capital projects 34,743,355 - 34,743,355 -
Solid waste & recycling 144,366 - - 144,366
Culture & Leisure activities 342,906 - - 342,906
Employee benefits 497,327 - - 497,327
Total Assigned 33,861,276 34,743,355 68,604,631 -
Unassigned fund balances 42,252,230 - 42,252,230 -
TOTAL FUND BALANCE $ 150,562,389 $ 34,743,355 $ 20,295,560 $ 205,601,304 87 Attachment 1
City of Coronado Page 442

CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 21: PRIOR PERIOD ADJUSTMENT:

With the implementation of GASB 96 – Subscription-Based Information Technology (IT) Arrangements, the beginning balance of capital assets and long-term liabilities were restated as follows:

Governmental
Activities
Net position, beginning of year, as previously stated $ 267,400,027 Subscription-based IT assets 642,834
Subscription-based IT payable (642,834)
Net position at July 1, 2022, restated $ 267,400,027
88 Attachment 1
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CITY OF CORONADO

REQUIRED SUPPLEMENTARY INFORMATION
89 Attachment 1
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THIS PAGE INTENTIONALLY LEFT BLANK
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BUDGETARY COMPARISON SCHEDULE

GENERAL FUND
YEAR ENDED JUNE 30, 2023
Original Final Actual Amounts
Revenues:

Taxes $ 58,252,819 $ 61,752,819 $ 69,430,171 $ 7,677,352 Licenses and permits 751,900 751,900 676,855 (75,045)
Intergovernmental 3,250,362 3,304,672 3,344,954 40,282
Charges for services 4,049,034 4,243,034 4,755,247 512,213 Use of money and property 346,850 346,850 5,387,778 5,040,928 Fines and forfeitures 267,100 267,100 300,784 33,684
Reimbursements 1,334,500 1,434,500 1,219,341 (215,159)
Miscellaneous 483,390 483,390 949,448 466,058
Total Revenues 68,735,955 72,584,265 86,064,578 13,480,313 Expenditures:

General government:

Legislative 1,590,041 1,590,041 1,470,722 (119,319)
City Clerk 414,774 414,833 420,777 5,944
City Manager 1,018,237 1,018,237 950,714 (67,523)
Public Communications 222,411 222,411 163,572 (58,839)
City Hall 1,983,100 2,719,100 1,413,483 (1,305,617)
Legal Services 659,200 859,200 1,387,485 528,285
Administrative Services 4,999,665 5,408,692 4,805,812 (602,880) Insurance 1,585,014 1,585,014 1,444,817 (140,197)
Employee Benefits 180,185 180,185 276,554 96,369
Workers Compensation 540,022 540,022 - (540,022)
Public safety:

Police 16,907,404 17,222,784 16,803,631 (419,153)
Fire 10,755,729 11,032,647 10,416,316 (616,331)
Culture and leisure:

Recreation 4,812,968 5,027,968 4,936,701 (91,267)
Library 3,554,692 3,567,018 3,258,496 (308,522)
Citizen Donations 9,100 9,100 - (9,100)
Culture Arts 259,065 359,065 238,568 (120,497)
Construction and maintenance:

Public Services 10,962,421 11,107,421 10,094,378 (1,013,043) Engineering 1,366,119 1,366,659 1,133,158 (233,501)
Solid Waste & Recycling 694,795 694,795 666,473 (28,322) Planning and building 3,445,046 4,373,286 3,215,698 (1,157,588) Capital outlay 1,025,800 2,504,034 1,277,540 (1,226,494) Principal - - 170,157 170,157
Interest and fiscal charges - - 2,061 2,061
Total Expenditures 66,985,788 71,802,512 64,547,113 (7,255,399) Other Financing Sources (Uses):

Lease proceeds - - 70,107 (70,107)
Transfers in - 925,000 209,733 715,267
Transfers out (2,600,000) (4,658,386) (3,794,529) (863,857) Total Other Financing Sources (Uses) (2,600,000) (3,733,386) (3,514,689) (148,590) Net Change in Fund Balances (849,833) (2,951,633) 18,002,776 6,076,324 Budgetary Fund Balance, July 1, 132,559,613 132,559,613 132,559,613 - Budgetary Fund Balances, June 30 $ 110,794,903 $ 113,182,448 $ 150,562,389 $ 12,549,086 Budget Amounts Actual
Over/(Under)
Budget
91 Attachment 1
City of Coronado Page 446

CITY OF CORONADO

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
Note 1: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY:
a. General Budget Policies:
1) The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and the means of financing them. 2) The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. This “appropriated budget” covers substantially all City expenditures, with the exception of debt service on bond issues and capital improvements projects, which expenditures constitute legally authorized “nonappropriated budget”. There were no significant non-budgeted financial activities. Actual expenditures may not exceed budgeted appropriations at the fund level. However, the City Manager is authorized to transfer budgeted amounts between individual accounts within department categories. Budgeted figures used in the financial statements are the final adjusted amounts, including any amendments to the budget during the year. 3) Formal budgetary integration is employed as a management control device. Commitments for materials and services, such as purchase orders and contracts, are recorded during the year as encumbrances to assist in controlling expenditures. Appropriations, which are encumbered at year-end lapse, and then are added to the following year’s budgeted appropriations.
4) Budgets for the General, Special Revenue, and Capital Project Funds are adopted on a basis substantially consistent with generally accepted accounting principles (GAAP).

Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items. No budgetary comparisons are presented for Proprietary Funds, as the City is not legally required to adopt a budget for these types of funds.
5) Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State controller, returned to the taxpayers through revisited tax rates or revised fee schedules, or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended June 30, 2023, based on calculations by City Management, proceeds of taxes did not exceed related appropriations. Further, Section 5 of Article XIIIB allows the City to designate a portion of fund balance for general contingencies, to be used in future years without limitation.

Budgets were not prepared for permanent funds (the Reynolds Endowment, A.B. Fry Trust, Harlow Memorial Rose Garden Trust, Pauline Freedman Bequest, and Ted and Marjorie Stearns), therefore, no budgetary comparison is presented. 92 Attachment 1
City of Coronado Page 447

CITY OF CORONADO

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
Note 2: EXCESS OF EXPENDITURES OVER APPROPRIATIONS:

For the fiscal year ended June 30, 2023, the Community Development Block Grant fund reflected expenditures in excess of budgeted amounts.

Fund Appropriations Expenditures Excess
Community Development
Block Grant Fund $ 39,398 $ 121,507 $ (82,109)
93 Attachment 1
City of Coronado Page 448

CITY OF CORONADO

MISCELLANEOUS PLAN

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
MEASUREMENT PERIOD 2022 2021 2020 2019 2018

TOTAL PENSION LIABILITY
Service Cost $ 2,574,363 $ 2,389,728 $ 2,391,239 $ 2,306,052 $ 2,360,874 Interest on Total Pension Liability 8,408,304 8,137,530 7,817,689 7,524,926 7,132,811 Change of Assumptions 4,006,832 - - - (567,049)
Difference between Expected and Actual Experience (637,953) (195,623) (705,472) 577,765 (662,470) Benefit Payments, Including Refunds of Employee Contributions (6,128,698) (5,752,463) (5,325,997) (4,821,072) (4,298,784) Net Change in Total Pension Liability 8,222,848 4,579,172 4,177,459 5,587,671 3,965,382 Total Pension Liability - Beginning 120,267,771 115,688,599 111,511,140 105,923,469 101,958,087 Total Pension Liability - Ending 128,490,619 120,267,771 115,688,599 111,511,140 105,923,469

PLAN FIDUCIARY NET POSITION
Contribution - Employer 3,532,170 3,388,562 3,031,208 2,728,186 2,399,092 Contribution - Employees 1,091,989 1,043,538 1,050,776 924,629 903,269 Net Investment Income (8,368,937) 20,645,351 4,405,904 5,517,905 6,700,257 Benefit Payments, Including Refunds of Employee Contributions (6,128,698) (5,752,463) (5,325,997) (4,821,072) (4,298,784) Plan to Plan Resource Movement - - - - (195)
Administrative Expense (68,888) (91,255) (124,502) (59,962) (122,600) Other Miscellaneous Income/(Expense) - - - 195 (232,819) Net Change in Fiduciary Net Position (9,942,364) 19,233,733 3,037,389 4,289,881 5,348,220 Plan Fiduciary Net Position - Beginning 110,585,920 91,352,187 88,314,798 84,024,917 78,676,697 Plan Fiduciary Net Position - Ending 100,643,556 110,585,920 91,352,187 88,314,798 84,024,917 Plan Net Pension Liability/(Assets) - Ending $ 27,847,063 $ 9,681,851 $ 24,336,412 $ 23,196,342 $ 21,898,552 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 78.33% 91.95% 78.96% 79.20% 79.33% Covered Payroll $ 12,531,429 $ 12,681,550 $ 12,333,768 $ 12,056,521 $ 11,529,934 Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll 222.22% 76.35% 197.32% 192.40% 189.93% Notes to the Schedule:

Benefit Changes: The figures above do not include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (also known as Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the longterm expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. None in 2019 - 2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate. (1) Historical information is required only for measurement date for which GASB 68 is applicable. Fiscal Year 2014-15 was the first year of implementation, therefore only nine years are shown.
94 Attachment 1
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CITY OF CORONADO

MISCELLANEOUS PLAN

SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
MEASUREMENT PERIOD 2017 2016 2015 2014

TOTAL PENSION LIABILITY
Service Cost $ 2,227,244 $ 2,050,254 $ 2,136,967 $ 2,135,743 Interest on Total Pension Liability 6,857,386 6,635,205 6,329,005 5,985,585 Change of Assumptions 5,736,873 - (1,569,684) -
Difference between Expected and Actual Experience (872,772) (430,464) (1,538,259) - Benefit Payments, Including Refunds of Employee Contributions (3,840,883) (3,758,610) (3,335,867) (3,059,126) Net Change in Total Pension Liability 9,442,361 4,054,077 3,129,957 5,062,202 Total Pension Liability - Beginning 92,515,726 88,461,649 85,331,692 80,269,490 Total Pension Liability - Ending 101,958,087 92,515,726 88,461,649 85,331,692

PLAN FIDUCIARY NET POSITION
Contribution - Employer 2,231,434 2,037,221 1,861,146 1,774,885 Contribution - Employees 897,937 860,147 868,026 1,274,150 Net Investment Income 7,927,655 368,490 1,605,975 10,578,622 Benefit Payments, Including Refunds of Employee Contributions (3,840,883) (3,758,610) (3,335,867) (3,059,126) Plan to Plan Resource Movement - - (84) -
Administrative Expense (105,663) (43,943) (81,196) -
Other Miscellaneous Income/(Expense) - - - -
Net Change in Fiduciary Net Position 7,110,480 (536,695) 918,000 10,568,531 Plan Fiduciary Net Position - Beginning 71,566,217 72,102,912 71,184,912 60,616,381 Plan Fiduciary Net Position - Ending 78,676,697 71,566,217 72,102,912 71,184,912 Plan Net Pension Liability/(Assets) - Ending $ 23,281,390 $ 20,949,509 $ 16,358,737 $ 14,146,780 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 77.17% 77.36% 81.51% 83.42% Covered Payroll $ 11,461,142 $ 11,413,128 $ 11,595,677 $ 10,762,122 Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll 183.56% 183.56% 141.08% 131.45% Notes to the Schedule:
(1) Historical information is required only for measurement date for which GASB 68 is applicable. Fiscal Year 2014-15 was the first year of implementation, therefore only nine years are shown.

Benefit Changes: The figures above do not include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (also known as Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the longterm projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. None in 2019 - 2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate. 95 Attachment 1
City of Coronado Page 450

CITY OF CORONADO

MISCELLANEOUS PLAN

SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially Determined Contribution $ 3,902,303 $ 3,546,127 $ 3,394,986 $ 3,031,208 $ 2,728,186 $ 2,399,092 $ 2,231,434 $ 2,037,221 $ 1,861,146 Contribution in Relation to the Actuarially Determined
Contribution (3,902,303) (3,546,127) (3,394,986) (3,031,208) (2,728,186) (2,399,092) (2,231,434) (2,037,221) (1,861,146) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - Covered Payroll $ 13,763,677 $ 12,531,429 $ 12,681,550 $ 12,333,768 $ 12,056,521 $ 11,529,934 $ 11,461,142 $ 11,413,128 $ 11,595,677 Contributions as Percentage of Covered Payroll 28.35% 28.30% 26.77% 24.58% 22.63% 20.81% 19.47% 17.85% 16.05% Valuation Date June 30, 2020
Actuarial cost method
Amortization method/period
Asset valuation method
Inflation 2.30%
Salary increases
Payroll growth 2.75%
Investment rate of return
Retirement age
Mortality
(1) Historical information is required only for measurement for which GASB68 is applicable. Fiscal Year 2014-15 was the first year of implementation, therefore only nine years are shown.

7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation.

The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

Methods and assumptions used to determine contribution rates:

Entry Age Actuarial Cost Method
Level percentage of payroll
Market Value
Varies by entry age and service
96 Attachment 1
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CITY OF CORONADO

SAFETY PLAN

SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
MEASUREMENT PERIOD 2022 2021 2020 2019 2018 2017 2016 2015 2014 Plan's Proportion of the Net Pension
Liability 0.52488% 0.47804% 0.45429% 0.26483% 0.25693% 0.24757% 0.24418% 0.21893% 0.27235% Plan's Proportionate Share of the Net
Pension Liability $ 36,067,520 $ 16,776,858 $ 30,266,162 $ 27,137,047 $ 24,758,824 $ 24,552,568 $ 21,129,139 $ 15,026,989 $ 16,947,023 Plan's Covered Payroll $ 9,017,916 $ 9,010,360 $ 8,669,351 $ 8,106,754 $ 8,066,444 $ 7,831,499 $ 7,668,295 $ 7,315,770 $ 7,002,168 Proportionate Share of the Net Pension
Liability as Percentage of Covered Payroll 399.95% 186.20% 349.12% 334.75% 306.94% 313.51% 275.54% 205.41% 242.03% Plan Fiduciary Net Position as a Percentage
of the Total Pension Liability 73.5% 86.8% 75.5% 76.8% 77.6% 77.0% 75.07% 78.40% 79.82% (1) Historical information is required only for measurement date for which GASB 68 is applicable. Fiscal Year 2014-15 was the first year of implementation, therefore only nine years are shown.

Notes to the Schedule:

Benefit Changes: The figures above do not include any liability impact that may have resulted from voluntary benefit changes that occurred on or before the Measurement Date. However, offers of Two Years Additional Service Credit (also known as Golden Handshakes) that occurred after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.

Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

None in 2019 - 2021. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.65 percent (without a reduction for pension plan administrative expense). In 2014, amounts reported were based on the 7.5 percent discount rate.
97 Attachment 1
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CITY OF CORONADO

SAFETY PLAN

SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2023 2022 2021 2020 2019 2018 2017 2016 2015
Actuarially Determined Contribution $ 4,347,405 $ 3,959,848 $ 3,603,448 $ 3,191,990 $ 2,802,322 $ 2,417,255 $ 2,374,917 $ 2,172,049 2,027,930 Contribution in Relation to the
Actuarially Determined Contribution (4,347,405) (3,959,848) (3,603,448) (3,191,990) (2,802,322) (2,417,255) (2,374,917) (2,172,049) (7,027,930) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - $ - $ - (5,000,000) $ Covered Payroll $ 9,745,079 $ 9,017,916 $ 9,010,360 $ 8,669,351 $ 8,106,754 $ 8,066,444 $ 7,831,499 $ 7,668,295 $ 7,315,770 Contribution as a Percentage of Covered
Payroll 44.61% 43.91% 39.99% 36.82% 34.57% 29.97% 30.33% 28.33% 96.07% Valuation Date
Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method/period
Asset valuation method
Inflation 2.30%
Salary increases
Payroll growth 2.75%
Investment rate of return
Retirement age
Mortality
The probabilities of Retirement are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015.

Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

Level percentage of payroll
Entry Age Actuarial Cost Method
(1) Historical information is required only for measurement date for which GASB 68 is applicable. Fiscal Year 2014-15 was the first year of implementation, therefore only nine years are shown.

June 30, 2020
Market Value
Varies by entry age and service

7.00% Net of Pension Plan Investment and Administrative Expenses; includes Inflation. 98 Attachment 1
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CITY OF CORONADO

OPEB PLAN

SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
MEASUREMENT PERIOD 2022 2021 2020 2019 2018 2017
TOTAL OPEB LIABILITY:

Service Cost $ 210,225 $ 173,954 $ 169,298 $ 146,790 $ 142,515 $ 133,192 Interest on Total OPEB Liability 325,299 341,378 336,520 291,488 275,261 259,637 Change of Assumptions 341,170 574,156 - (110,357) - -
Difference between Expected and Actual Experience - (75,081) (73,933) 518,625 - - Benefit Payments, Including Refunds of Employee Contributions (282,725) (259,793) (257,644) (198,209) (182,274) (175,617) Net Change in Total OPEB Liability 593,969 754,614 174,241 648,337 235,502 217,212 Total OPEB Liability - Beginning 5,693,622 4,939,008 4,764,767 4,116,430 3,880,928 3,663,716 Total OPEB Liability - Ending (a) 6,287,591 5,693,622 4,939,008 4,764,767 4,116,430 3,880,928 PLAN FIDUCIARY NET POSITION:

Contribution - Employer 259,793 257,644 282,725 198,209 182,274 175,617 Net Investment Income (466,986) 658,699 95,884 145,328 222,710 267,218 Benefit Payments, Including Refunds of Employee Contributions (282,725) (259,793) (257,644) (198,209) (182,274) (175,617) Administrative Expense (16,385) (16,548) (7,011) (15,502) (6,485) (5,939) Net Change in Fiduciary Net Position (483,371) 642,151 88,873 129,826 216,225 261,279 Plan Fiduciary Net Position - Beginning 3,527,010 2,884,859 2,795,986 2,666,160 2,449,935 2,188,656 Plan Fiduciary Net Position - Ending (b) $ 3,043,639 $ 3,527,010 $ 2,884,859 $ 2,795,986 $ 2,666,160 $ 2,449,935 Plan Net OPEB Liability/(Assets) - Ending (a) - (b) $ 3,243,952 $ 2,166,612 $ 2,054,149 $ 1,968,781 $ 1,450,270 $ 1,430,993 Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 48.41% 61.95% 58.41% 58.68% 64.77% 63.13% Covered Payroll $ 22,265,804 $ 22,003,820 $ 20,455,155 $ 19,907,693 $ 19,327,857 $ 18,935,364 Plan Net OPEB Liability/(Asset) as a Percentage of Covered Payroll 14.57% 9.85% 10.04% 9.89% 7.50% 7.56% (1) Historical information is required only for measurement date for which GASB 68 is applicable. Fiscal Year 2014-15 was the first year of implementation, therefore only six years are shown.
99 Attachment 1
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CITY OF CORONADO

OPEB PLAN

SCHEDULE OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2023 2022 2021 2020 2019 2018
Actuarially Determined Contribution $ 297,864 $ 287,925 $ 259,793 $ 257,644 $ 198,209 $ 184,398 Contribution in Relation to the Actuarially Determined
Contribution (297,864) (287,925) (259,793) (257,644) (198,209) (184,398) Contribution Deficiency (Excess) $ - $ - $ - $ - $ - $ - Covered Payroll $ 23,523,205 $ 22,265,804 $ 22,003,820 $ 20,455,155 $ 19,907,693 $ 19,327,857 Contributions as Percentage of Covered Payroll 1.27% 1.29% 1.18% 1.26% 1.00% 0.95% Valuation Date
Actuarial cost method
Amortization method/period
Asset valuation method Market value
Inflation 2.50%
Payroll growth
Investment rate of return
Retirement age
Mortality The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. (1) Historical information is required only for measurement date for which GASB 68 is applicable. Fiscal Year 2014-15 was the first year of implementation, therefore only five years are shown.

According to the retirement rates under the most recent CalPERS pension plan valuation. According to the following retirement tables:

Miscellaneous Tier 1: 3% @60
Miscellaneous Tier 2: 2.0% @62
Police Tier 1: 3% @50
Police Tier 2: 2.7% @57
Firefighter Tier 1: 3% @50
Firefighter Tier 2: 2.7% @57
June 30, 2021
Entry age normal cost method
Level percentage of payroll over a closed rolling 15-year period

2.75% plus merit scale

5.26% per annum net of expenses
Methods and assumptions used to determine contribution rates:
100 Attachment 1
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CITY OF CORONADO

COMBINING AND INDIVIDUAL FUND

STATEMENTS AND SCHEDULES
101 Attachment 1
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CITY OF CORONADO

SPECIAL REVENUE FUNDS
Special Revenue Funds account for specific taxes and other revenue sources set aside in accordance with law or administrative regulation for a specific purpose.

Gas Tax – Accounts for state gasoline taxes received by the City. These funds may be used for street maintenance, right-of-way acquisition and street construction.

TransNet – Accounts for revenues from a one-half of one percent sales tax levied in San Diego County.

Expenditures can be used only for construction and maintenance of city streets.

Transportation Development – Accounts for funds received from Transportation Development Act’s Article 4 and Article 8.

Federal and State Grants – Accounts for the funds received from various grants, such as the State Recreation Program.

Public Safety – Accounts for proceeds of sales and assets that have been seized by law enforcement agencies during the investigation of criminal activities. These monies and the interest derived therefrom are used for the prevention, investigation, apprehension and prosecution of drug and other criminal law violators.

Library – Accounts for revenues from citizens gifts to the library. Expenditures are used for library programs enhancement.

Community Development Block Grant – Accounts for funds expended on specific community improvement programs and reimbursed from state or federal agencies.

Affordable Housing – Accounts for revenues collected and expenditures incurred in managing affordable housing.

Affordable Housing in Lieu – Accounts for revenues collected and expenditures incurred for the affordable housing in lieu fees program.

Coronado Tidelands – Accounts for revenues received through concession payments and slip rentals from Tideland area restaurants.
103 Attachment 1
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CITY OF CORONADO

PERMANENT FUNDS
A.B. Fry and Harlow Memorial Rose Garden Trusts – Accounts for principal and interest to be used for library improvements, and maintenance of the Harlow Memorial Rose Garden of the Library.

Pauline Freedman Bequest and Reynolds Endowment – Accounts for principal and interest income to be used for library improvements.

Ted and Marjorie Stearns Endowment – Accounts for the principal and interest income to be used for new children’s fictional and non-fictional books at the Coronado Library. 104 Attachment 1
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CITY OF CORONADO

COMBINING BALANCE SHEET

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
Gas Tax TransNet
Transportation
Development
Federal & State
Grants Public Safety
Assets:

Cash and investments $ 2,664,148 $ 206,431 $ 6,503,931 $ 34,169 $ 159,673 Accounts, grants and taxes receivable 100,150 - 30,423 11,466 - Notes receivable - - - - -
Interest receivable - - - - -
Allowance for uncollectible receivables - - - - -
Total Assets $ 2,764,298 $ 206,431 $ 6,534,354 $ 45,635 $ 159,673 Liabilities and Fund Balances:

Liabilities:

Accounts payable $ 3,040 $ - $ 50,337 $ 1,503 $ -
Deposits payable - - - - -
Total Liabilities 3,040 - 50,337 1,503 -
Fund Balances:

Non-spendable - - - - -
Restricted 2,761,258 206,431 6,484,017 44,132 159,673
Unassigned - - - - -
Total Fund Balances 2,761,258 206,431 6,484,017 44,132 159,673 Total Liabilities and Fund Balances $ 2,764,298 $ 206,431 $ 6,534,354 $ 45,635 $ 159,673 Special Revenue Funds
106 Attachment 1
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CITY OF CORONADO

COMBINING BALANCE SHEET

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
Assets:

Cash and investments
Accounts, grants and taxes receivable
Notes receivable
Interest receivable
Allowance for uncollectible receivables
Total Assets
Liabilities and Fund Balances:

Liabilities:

Accounts payable
Deposits payable
Total Liabilities
Fund Balances:

Non-spendable
Restricted
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
Library
Community
Development
Block Grant
Affordable
Housing
Affordable
Housing in Lieu
Coronado
Tidelands
$ 956,412 $ 82,575 $ 18,812 $ 1,502,140 $ 7,396,738
- 3,998 - - -
- - 6,424,269 - -
- - 4,209,884 - -
- - (9,834,152) - -
$ 956,412 $ 86,573 $ 818,813 $ 1,502,140 $ 7,396,738
$ - $ 86,573 $ 1,198 $ - $ 44,909
- - - - 46,036
- 86,573 1,198 - 90,945
- - - - -
956,412 - 817,615 1,502,140 7,305,793
- - - - -
956,412 - 817,615 1,502,140 7,305,793
$ 956,412 $ 86,573 $ 818,813 $ 1,502,140 $ 7,396,738
(Continued)
Special Revenue Funds
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CITY OF CORONADO

COMBINING BALANCE SHEET

NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
Assets:

Cash and investments
Accounts, grants and taxes receivable
Notes receivable
Interest receivable
Allowance for uncollectible receivables
Total Assets
Liabilities and Fund Balances:

Liabilities:

Accounts payable
Deposits payable
Total Liabilities
Fund Balances:

Non-spendable
Restricted
Unassigned
Total Fund Balances
Total Liabilities and Fund Balances
A.B Fry &
Harlow Memorial
Rose Garden
Trusts
Pauline Freedman
Bequest &
Reynolds
Endowment
Ted and Marjorie
Stearns
Endowment
Total Nonmajor
Governmental
Funds
$ 7,326 $ 35,091 $ 15,672 $ 19,583,118
- - - 146,037
- - - 6,424,269
- - - 4,209,884
- - - (9,834,152)
$ 7,326 $ 35,091 $ 15,672 $ 20,529,156
$ - $ - $ - $ 187,560
- - - 46,036
- - - 233,596
3,667 - 15,271 18,938
3,659 35,091 401 20,276,622
- - - -
7,326 35,091 15,672 20,295,560
$ 7,326 $ 35,091 $ 15,672 $ 20,529,156
(Concluded)
Permanent Funds
108 Attachment 1
City of Coronado Page 463

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109 Attachment 1
City of Coronado Page 464

CITY OF CORONADO

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
Gas Tax TransNet
Transportation
Development
Federal & State
Grants Public Safety
Revenues:

Intergovernmental $ 1,101,257 $ 131,400 $ - $ 66,979 $ 15,551 Charges for services - 15,692 - - -
Use of money and property 109,507 6,252 280,468 - 7,443 Reimbursements - - 367,405 - -
Miscellaneous - - - - -
Total Revenue 1,210,764 153,344 647,873 66,979 22,994
Expenditures:

Current:

Public safety - - - 43,480 22,774
Construction and maintenance 321,028 - 323,631 - -
Culture and leisure - - - - -
Planning and building services - - - - -
Capital outlay 322,220 131,400 - - -
Total Expenditures 643,248 131,400 323,631 43,480 22,774 Other Financing Sources (Uses):

Transfers in - - - - -
21,944 324,242 23,499 220 567,516
Net Change in Fund Balances 567,516 21,944 324,242 23,499 220 Fund Balances, Beginning of the Year 2,193,742 184,487 6,159,775 20,633 159,453 Fund Balances (Deficit), End of Year $ 2,761,258 $ 206,431 $ 6,484,017 $ 44,132 $ 159,673 Special Revenue Funds
Excess (Deficiency) of Revenues Over (Under) Expenditures 110 Attachment 1
City of Coronado Page 465

CITY OF CORONADO

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
Revenues:

Intergovernmental
Charges for services
Use of money and property
Reimbursements
Miscellaneous
Total Revenue
Expenditures:

Current:

Public safety
Construction and maintenance
Culture and leisure
Planning and building services
Capital outlay
Total Expenditures
Other Financing Sources (Uses):

Transfers in
Net Change in Fund Balances
Fund Balances, Beginning of the Year
Fund Balances (Deficit), End of Year
Excess (Deficiency) of Revenues Over (Under) Expenditures Library
Community
Development Block
Grant Affordable Housing
Affordable Housing
in Lieu Coronado Tidelands
$ 38,933$ -$ -$ -$ -
- - 28,000 1,713,383 -
465 86,394 37,383 81,825 286,436
- - - - -
72,477 - - - -
109,860 39,398 86,394 109,825 1,999,819
- - - - -
- - - - -
74,298 - - - 805,829
- - 190,426 - -
- 121,507 - - -
74,298 121,507 190,426 - 805,829
- 61,143 - - -
(20,966) 35,562 (104,032) 109,825 1,193,990
35,562 (20,966) (104,032) 109,825 1,193,990
920,850 20,966 921,647 1,392,315 6,111,803
$ -$ 817,615$ 1,502,140$ 7,305,793$ 956,412
(Continued)
Special Revenue Funds
111 Attachment 1
City of Coronado Page 466

CITY OF CORONADO

COMBINING STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES

NON-MAJOR GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
Revenues:

Intergovernmental
Charges for services
Use of money and property
Reimbursements
Miscellaneous
Total Revenue
Expenditures:

Current:

Public safety
Construction and maintenance
Culture and leisure
Planning and building services
Capital outlay
Total Expenditures
Other Financing Sources (Uses):

Transfers in
Net Change in Fund Balances
Fund Balances, Beginning of the Year
Fund Balances (Deficit), End of Year
Excess (Deficiency) of Revenues Over (Under) Expenditures A.B Fry & Harlow
Memorial Rose
Garden Trusts
Pauline Freedman
Bequest & Reynolds
Endowment
Ted and Marjorie
Stearns Endowment
Total Nonmajor
Governmental
Funds
$ - $ - $ - $ 1,354,120
- - - 1,757,075
242 1,160 519 898,094
- - - 367,405
- - - 72,477
242 1,160 519 4,449,171
- - - 66,254
- - - 644,659
- - - 880,127
- - - 190,426
- - - 575,127
- - - 2,356,593
- - - 61,143
1,160 519 242 2,153,721
242 1,160 519 2,153,721
7,084 33,931 15,153 18,141,839
$ 7,326 $ 35,091 $ 15,672 $ 20,295,560
(Concluded)
Permanent Funds
112 Attachment 1
City of Coronado Page 467

CITY OF CORONADO

BUDGETARY COMPARISON SCHEDULE

GAS TAX
YEAR ENDED JUNE 30, 2023
Original Final Actual Amounts
Revenues:

Intergovernmental $ 1,122,718 $ 1,122,718 $ 1,101,257 $ (21,461) Use of money and property 7,630 7,630 109,507 101,877
Total Revenues 1,130,348 1,130,348 1,210,764 80,416
Expenditures:

Construction and maintenance 346,653 346,653 321,028 (25,625) Capital outlay 300,000 1,371,557 322,220 (1,049,337)
Total Expenditures 646,653 1,718,210 643,248 (1,074,962) Net Change in Fund Balance 483,695 (587,862) 567,516 1,155,378 Budgetary Fund Balance, July 1 2,193,742 2,193,742 2,193,742 - Budgetary Fund Balance, June 30 $ 2,677,437 $ 1,605,880 $ 2,761,258 $ 1,155,378 Budget Amounts Actual
Over/(Under)
113 Attachment 1
City of Coronado Page 468

CITY OF CORONADO

BUDGETARY COMPARISON SCHEDULE

TRANSNET
YEAR ENDED JUNE 30, 2023
Original Final Actual Amounts
Revenues:

Intergovernmental $ 1,637,140 $ 1,637,140 $ 131,400 $ (1,505,740) Charges for services 18,188 18,188 15,692 (2,496)
Use of money and property 460 460 6,252 5,792
Total Revenues 1,655,788 1,655,788 153,344 (1,502,444)
Expenditures:

Construction and maintenance 81,410 81,410 - (81,410)
Capital outlay 900,000 2,889,574 131,400 (2,758,174)
Total Expenditures 981,410 2,970,984 131,400 (2,839,584) Net Change in Fund Balance 674,378 (1,315,196) 21,944 1,337,140 Budgetary Fund Balance, July 1 184,487 184,487 184,487 - Budgetary Fund Balance, June 30 $ 858,865 $ (1,130,709) $ 206,431 $ 1,337,140 Budget Amounts Actual
Over/(Under)
114 Attachment 1
City of Coronado Page 469

CITY OF CORONADO

BUDGETARY COMPARISON SCHEDULE

TRANSPORTATION DEVELOPMENT
YEAR ENDED JUNE 30, 2023
Original Final Actual Amounts
Revenues:

Use of money and property $ 18,150 $ 18,150 $ 280,468 $ 262,318 Reimbursements 200,000 200,000 367,405 167,405
Total Revenues 218,150 218,150 647,873 429,723
Expenditures:

Construction and maintenance 233,547 5,108,695 323,631 (4,785,064) Capital outlay - 428,117 - (428,117)
Total Expenditures 233,547 5,536,812 323,631 (5,213,181) Net Change in Fund Balance (15,397) (5,318,662) 324,242 5,642,904 Budgetary Fund Balance, July 1 6,159,775 6,159,775 6,159,775 - Budgetary Fund Balance, June 30 $ 6,144,378 $ 841,113 $ 6,484,017 $ 5,642,904 Budget Amounts Actual
Over/(Under)
115 Attachment 1
City of Coronado Page 470

CITY OF CORONADO

BUDGETARY COMPARISON SCHEDULE

FEDERAL & STATE GRANTS
YEAR ENDED JUNE 30, 2023
Original Final Actual Amounts
Revenues:

Intergovernmental $ 77,474 $ 142,891 $ 66,979 $ (75,912) Use of money and property 40 40 - (40)
Total Revenues 77,514 142,931 66,979 (75,952)
Expenditures:

Public safety 68,309 133,726 43,480 (90,246)
Total Expenditures 68,309 133,726 43,480 (90,246)
Net Change in Fund Balance 9,205 9,205 23,499 14,294
Budgetary Fund Balance, July 1 20,633 20,633 20,633 -
Budgetary Fund Balance, June 30 $ 29,838 $ 29,838 $ 44,132 $ 14,294 Budget Amounts Actual
Over/(Under)
116 Attachment 1
City of Coronado Page 471

CITY OF CORONADO

BUDGETARY COMPARISON SCHEDULE

PUBLIC SAFETY
YEAR ENDED JUNE 30, 2023
Original Final Actual Amounts
Revenues:

Intergovernmental $ 2,500 $ 2,500 $ 15,551 $ 13,051
Use of money and property 450 450 7,443 6,993
Total Revenues 2,950 2,950 22,994 20,044
Expenditures:

Public safety 44,170 44,170 22,774 (21,396)
Total Expenditures 44,170 44,170 22,774 (21,396)
Net Change in Fund Balance (41,220) (41,220) 220 41,440 Budgetary Fund Balance, July 1 159,453 159,453 159,453 - Budgetary Fund Balance, June 30 $ 118,233 $ 118,233 $ 159,673 $ 41,440 Budget Amounts Actual
Over/(Under)
117 Attachment 1
City of Coronado Page 472

CITY OF CORONADO

BUDGETARY COMPARISON SCHEDULE

LIBRARY
YEAR ENDED JUNE 30, 2023
Original Final Actual Amounts
Revenues:

Use of money and property $ 2,440 $ 2,440 $ 37,383 $ 34,943 Miscellaneous 31,000 31,000 72,477 41,477
Total Revenues 33,440 33,440 109,860 76,420
Expenditures:

Culture and leisure 110,500 110,500 74,298 (36,202)
Total Expenditures 110,500 110,500 74,298 (36,202)
Net Change in Fund Balance (77,060) (77,060) 35,562 112,622 Budgetary Fund Balance, July 1 920,850 920,850 920,850 - Budgetary Fund Balance, June 30 $ 843,790 $ 843,790 $ 956,412 $ 112,622 Budget Amounts Actual
Over/(Under)
118 Attachment 1
City of Coronado Page 473

CITY OF CORONADO

BUDGETARY COMPARISON SCHEDULE

COMMUNITY DEVELOPMENT BLOCK GRANT
YEAR ENDED JUNE 30, 2023
Original Final Actual Amounts
Revenues:

Intergovernmental $ - $ - $ 38,933 $ 38,933
Use of money and property 40 40 465 425
Miscellaneous 92,174 92,174 - (92,174)
Total Revenues 92,214 92,214 39,398 (52,816)
Expenditures:

Capital outlay 92,214 241,336 121,507 (119,829)
Total Expenditures 92,214 241,336 121,507 (119,829)
Other Financing Sources (Uses):

Transfers in - - 61,143 61,143
Net Change in Fund Balance - (149,122) (20,966) 128,156 Budgetary Fund Balance, July 1 20,966 20,966 20,966 -
Budgetary Fund Balance (Deficit), June 30 $ 20,966 $ (128,156) $ - $ 128,156 Budget Amounts Actual
Over/(Under)
119 Attachment 1
City of Coronado Page 474

CITY OF CORONADO

BUDGETARY COMPARISON SCHEDULE

AFFORDABLE HOUSING
YEAR ENDED JUNE 30, 2023
Original Final Actual Amounts
Revenues:

Use of money and property $ 20,000 $ 20,000 $ 86,394 $ 66,394 Total Revenues 20,000 20,000 86,394 66,394
Expenditures:

Planning and building services 10,000 205,793 190,426 (15,367) Total Expenditures 10,000 205,793 190,426 (15,367)
Net Change in Fund Balance 10,000 (185,793) (104,032) 81,761 Budgetary Fund Balance, July 1 921,647 921,647 921,647 - Budgetary Fund Balance, June 30 $ 931,647 $ 735,854 $ 817,615 $ 81,761 Budget Amounts Actual
Over/(Under)
120 Attachment 1
City of Coronado Page 475

CITY OF CORONADO

BUDGETARY COMPARISON SCHEDULE

AFFORDABLE HOUSING IN LIEU
YEAR ENDED JUNE 30, 2023
Original Final Actual Amounts
Revenues:

Charges for services $ 50,000 $ 50,000 $ 28,000 $ (22,000) Use of money and property 5,580 5,580 81,825 76,245
Total Revenues 55,580 55,580 109,825 54,245
Net Change in Fund Balance 55,580 55,580 109,825 54,245 Budgetary Fund Balance, July 1 1,392,315 1,392,315 1,392,315 - Budgetary Fund Balance, June 30 $ 1,447,895 $ 1,447,895 $ 1,502,140 $ 54,245 Budget Amounts Actual
Over/(Under)
121 Attachment 1
City of Coronado Page 476

CITY OF CORONADO

BUDGETARY COMPARISON SCHEDULE

CORONADO TIDELANDS
YEAR ENDED JUNE 30, 2023
Original Final Actual Amounts
Revenues:

Charges for services $ 1,400,000 $ 1,400,000 $ 1,713,383 $ 313,383 Use of money and property 16,550 16,550 286,436 269,886 Total Revenues 1,416,550 1,416,550 1,999,819 583,269
Expenditures:

Culture and leisure 859,770 859,770 805,829 (53,941)
Total Expenditures 859,770 859,770 805,829 (53,941)
Net Change in Fund Balance 556,780 556,780 1,193,990 637,210 Budgetary Fund Balance, July 1 6,111,803 6,111,803 6,111,803 - Budgetary Fund Balance, June 30 $ 6,668,583 $ 6,668,583 $ 7,305,793 $ 637,210 Budget Amounts
Actual
Over/(Under)
Budget
122 Attachment 1
City of Coronado Page 477

CITY OF CORONADO

BUDGETARY COMPARISON SCHEDULE

CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2023
Original Final Actual Amounts
Revenues:

Use of money and property $ - $ - $ 274,421 $ 274,421
Total Revenues - - 274,421 274,421
Expenditures:

Public safety 1,800,000 - - -
Capital outlay 1,100,000 8,368,620 806,020 (7,562,600)
Total Expenditures 2,900,000 8,368,620 806,020 (7,562,600) Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,900,000) (8,368,620) (531,599) 7,837,021 Other Financing Sources (Uses):

Transfers in 2,100,000 2,913,166 2,913,166 -
Transfers out (9,000,000) (9,000,000) - 9,000,000
Total Other Financing Sources (Uses) (6,900,000) (6,086,834) 2,913,166 9,000,000 Net Change in Fund Balance (9,800,000) (14,455,454) 2,381,567 16,837,021 Budgetary Fund Balance, July 1 32,361,788 32,361,788 32,361,788 - Budgetary Fund Balance, June 30 $ 22,561,788 $ 17,906,334 $ 34,743,355 $ 16,837,021 Budget Amounts Actual
Over/(Under)
123 Attachment 1
City of Coronado Page 478

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124 Attachment 1
City of Coronado Page 479

CITY OF CORONADO

STATISTICAL SECTION
125 Attachment 1
City of Coronado Page 480

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126 Attachment 1
City of Coronado Page 481
Statistical Section
This part of the City of Coronado’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, notes disclosures, and required supplementary information says about the City’s overall financial health.

Contents
Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.
 Net Position by Component
 Changes in Net Position Last Ten Fiscal Years
 Governmental Activities Tax Revenues by Source Last Ten Fiscal Years  Fund Balances of Governmental Funds Last Ten Fiscal Years  Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the City’s ability to generate its property taxes.
 Assessed Value of Taxable Property Last Ten Fiscal Years  Property Tax Rates - Direct and Overlapping Governments (Per $100 of Assessed Value) Last Ten Fiscal Years.
 Principal Property Tax Payers Based on Gross Assessed Values Current Year and Nine Years Ago
 General Property Tax Levies and Collections Last Ten Fiscal Years Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.  Schedule of Debt Ratios Last Ten Fiscal Years
 Schedule of Direct and Overlapping Debt, June 30, 2023  Schedule of Legal Debt Margin, June 30, 2023
 Pledged Revenue Coverage – Storm Drain Revenue Bonds Last Ten Fiscal Years Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place and to help make comparisons over time and with other governments.
 Demographic and Economic Statistics Last Ten Fiscal Years  Principal Employers by Employee Size June 30, 2023 and June 30, 2014 Operating Information
These schedules contain information about the City’s operations and resources to help the reader understand how the City’s financial information relates to the services the City provides.  Full – Time and Part – Time City Employees Last Ten Fiscal Years  Operating Indicators by Function Last Ten Fiscal Years  Capital Assets Statistics by Function Last Ten Fiscal Years Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year.
127 Attachment 1
City of Coronado Page 482
2013-14 2014-15 2015-16 2016-17
Governmental activities:

Net investment in capital assets $ 117,186,363 $ 116,205,185 $ 119,396,004 $ 128,475,663 Restricted 16,272,773 15,034,923 15,373,001 17,402,258
Unrestricted 77,954,474 75,817,464 87,417,337 102,264,206 Total governmental activities net position $ 211,413,610 $ 207,057,572 $ 222,186,342 $ 248,142,127 Business-type activities:

Net investment in capital assets $ 31,788,279 $ 36,386,056 $ 36,024,815 $ 36,958,117 Restricted 364,325 - - -
Unrestricted 6,225,082 7,247,527 9,135,426 10,532,940
Total business-type activities net position $ 38,377,686 $ 43,633,583 $ 45,160,241 $ 47,491,057 Primary government:

Net investment in capital assets $ 148,974,642 $ 152,591,241 $ 155,420,819 $ 165,433,780 Restricted 16,637,098 15,034,923 15,373,001 17,402,258
Unrestricted 84,179,556 83,064,991 96,552,763 112,797,146 Total primary government net position $ 249,791,296 $ 250,691,155 $ 267,346,583 $ 295,633,184 Fiscal Year

CITY OF CORONADO

NET POSITION BY COMPONENT
TABLE 1
(accrual basis of accounting)

LAST TEN FISCAL YEARS
128 Attachment 1
City of Coronado Page 483

CITY OF CORONADO
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
$ 129,502,485 $ 129,961,176 $ 131,584,730 $ 129,875,175 $ 130,411,480 $ 127,311,375 23,770,635 50,900,920 47,904,346 50,310,634 38,145,227 37,705,508 99,784,410 78,862,469 78,358,378 73,512,302 98,843,320 119,925,342 $ 253,057,530 $ 259,724,565 $ 257,847,454 $253,698,111 $267,400,027 $284,942,225 $ 37,493,053 $ 39,487,586 $ 42,951,193 $ 42,081,320 $ 45,296,225 $ 49,420,287 - - - - - -
12,463,634 12,491,878 12,066,044 15,605,653 16,198,756 16,120,977 $ 49,956,687 $ 51,979,464 $ 55,017,237 $57,686,973 $61,494,981 $65,541,264 $ 166,995,538 $ 169,448,762 $ 174,535,923 $ 171,956,495 $ 175,707,705 $ 176,731,662 23,770,635 50,900,920 47,904,346 50,310,634 38,145,227 37,705,508 112,248,044 91,354,347 90,424,422 89,117,955 115,042,076 136,046,319 $ 303,014,217 $ 311,704,029 $ 312,864,691 $311,385,084 $328,895,008 $350,483,489 Fiscal Year
(accrual basis of accounting)

LAST TEN FISCAL YEARS

NET POSITION BY COMPONENT
(Continued)
TABLE 1
129 Attachment 1
City of Coronado Page 484

CITY OF CORONADO
2013-14 2014-15 2015-16 2016-17 2017-18
EXPENSES:

Governmental activities:

General Government $ 9,556,425 $ 10,216,886 $ 8,171,947 $ 9,075,297 $ 9,036,409 Public Safety 16,690,039 18,206,809 17,056,540 21,137,286 22,482,515 Construction and Maintenance 7,316,660 7,672,654 9,390,678 12,638,735 13,716,094 Culture and Leisure 8,537,869 7,960,184 7,641,820 10,431,184 9,538,728 Planning and Building Services 1,504,159 1,898,035 1,940,944 1,964,832 1,905,631 Housing 346,510 345,684 373,521 191,167 192,706
Tidelands - 910,470 - - -
Redevelopment - - - - -
Transportation 172,114 178,076 - - -
Interest on long-term debt 1,928 993 147 - -
Total governmental activities expenses 44,125,704 47,389,791 44,575,597 55,438,501 56,872,083 Business-type activities:

Wastewater 5,178,414 5,584,621 5,778,977 6,475,568 6,540,317 Golf 3,186,013 3,136,398 2,984,531 2,936,296 3,247,361
Storm Drain 1,015,595 1,359,668 1,121,395 977,814 1,279,577 Total business-type activities expenses 9,380,022 10,080,687 9,884,903 10,389,678 11,067,255 Total primary government expenses 53,505,726 57,470,478 54,460,500 65,828,179 67,939,338 PROGRAM REVENUES:

Governmental activities:

Charges for services:

General government 663,566 1,634,874 1,971,562 2,354,134 2,209,553 Public safety 2,435,992 1,226,901 792,715 1,266,032 1,455,150 Construction and maintenance 64,059 27,433 416,711 129,336 548,385 Culture and leisure 3,971,855 3,761,653 3,941,656 2,780,538 2,717,556 Planning and building services 1,455,130 1,582,416 1,742,250 1,753,389 1,373,532 Housing 415,690 376,923 371,749 376,354 349,206
Tidelands - 1,313,307 - - -
Transportation 145,737 18,527 - - -
Operating grants and contributions 1,628,079 2,243,153 3,858,205 3,649,003 2,680,923 Capital grants and contributions 468,816 342,636 46,340 1,330,075 971,783 Total governmental activities
program revenues 11,248,924 12,527,823 13,141,188 13,638,861 12,306,088 Business type activities:

Charges for services:

Wastewater 4,790,582 5,620,922 6,875,646 7,417,758 8,410,542 Golf 3,062,117 3,003,543 2,992,019 2,894,708 3,326,824
Storm Drain 568,300 573,055 574,996 602,653 848,179
Total business type activities
program revenues 8,420,999 9,197,520 10,442,661 10,915,119 12,585,545 Total primary government
program revenues 19,669,923 21,725,343 23,583,849 24,553,980 24,891,633 TABLE 2
Fiscal Year

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(accrual basis of accounting)
130 Attachment 1
City of Coronado Page 485

CITY OF CORONADO
2018-19 2019-20 2020-21 2021-22 2022-23
EXPENSES:

Governmental activities:

General Government $ 9,625,099 $ 11,723,725 $ 11,983,665 $ 10,423,903 $ 13,435,216 Public Safety 22,190,452 24,962,050 27,756,674 23,767,540 29,688,984 Construction and Maintenance 15,359,543 16,673,131 13,984,450 11,584,251 13,882,871 Culture and Leisure 10,779,164 10,158,149 8,171,526 9,036,246 11,286,300 Planning and Building Services 2,226,423 3,054,353 3,634,687 2,745,784 3,385,350 Housing 110,550 23,810 126,804 97,330 190,426
Tidelands - - - - -
Redevelopment - - - - -
Transportation - - - - -
Interest on long-term debt - - - - -
Total governmental activities expenses 60,291,231 66,595,218 65,657,806 57,655,053 71,869,147 Business-type activities:

Wastewater 7,155,168 6,442,924 6,708,941 6,276,533 6,226,744 Golf 3,989,913 3,584,465 3,400,518 3,485,940 3,868,055
Storm Drain 1,545,418 1,171,761 1,374,070 1,301,421 1,511,018 Total business-type activities expenses 12,690,499 11,199,150 11,483,529 11,063,894 11,605,817 Total primary government expenses 72,981,730 77,794,368 77,141,335 68,718,947 83,474,964 PROGRAM REVENUES:

Governmental activities:

Charges for services:

General government 2,163,343 2,372,274 2,421,046 2,316,005 2,536,493 Public safety 1,442,590 1,329,442 906,666 242,907 361,356 Construction and maintenance 414,638 580,507 512,398 570,751 486,055 Culture and leisure 2,615,932 1,695,062 831,207 1,317,204 1,946,857 Planning and building services 1,645,876 1,648,483 1,525,864 1,699,966 1,648,414 Housing 304,437 42,000 21,000 98,000 28,000
Tidelands - - - - -
Transportation - - - - -
Operating grants and contributions 2,040,841 3,123,744 3,089,246 5,996,232 6,559,734 Capital grants and contributions 1,572,599 2,278,197 1,081,528 990,735 137,297 Total governmental activities
program revenues 12,200,256 13,069,709 10,388,955 13,231,800 13,704,206 Business type activities:

Charges for services:

Wastewater 8,762,715 8,582,092 7,867,326 9,534,408 7,836,385 Golf 3,410,058 3,542,115 4,765,583 4,756,241 4,731,490
Storm Drain 731,814 677,479 646,526 672,044 663,960
Total business type activities
program revenues 12,904,587 12,801,686 13,279,435 14,962,693 13,231,835 Total primary government
program revenues 25,104,843 25,871,395 23,668,390 28,194,493 26,936,041 (Continued)
Fiscal Year

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(accrual basis of accounting)
TABLE 2
131 Attachment 1
City of Coronado Page 486

CITY OF CORONADO
2013-14 2014-15 2015-16 2016-17 2017-18
TABLE 2
Fiscal Year

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(accrual basis of accounting)
Net revenues (expenses):

Governmental activities (32,876,780) (34,861,968) (31,434,409) (41,799,640) (44,565,995) Business-type activities (959,023) (883,167) 557,758 525,441 1,518,290 Total net revenue (expenses) (33,835,803) (35,745,135) (30,876,651) (41,274,199) (43,047,705) GENERAL REVENUE AND OTHER CHANGES IN NET POSITION:

Governmental Activities:

Taxes:

Property Taxes 23,186,424 24,557,604 27,011,615 27,680,962 29,515,386 Transient occupancy taxes 12,442,925 13,763,729 13,818,817 14,577,717 15,264,023 Sales and use taxes 3,258,208 3,493,272 4,041,392 3,338,149 3,383,032 Franchise & Other taxes 1,476,654 1,606,790 1,186,785 2,082,265 2,185,830 Use of Money and Property 645,280 118,868 336,345 488,996 1,860,088 Other 237,572 74,564 56,756 167,633 935,155
Extraordinary gain and special items - 21,868,662 - 12,190,821 2,780,754 Transfers 70,500 68,300 111,469 116,746 (975,000)
Total governmental activities 41,317,563 65,551,789 46,563,179 60,643,289 54,949,268 Business type activities:

Use of Money and Property 60,921 66,018 131,477 57,584 139,523 Gain on sale of capital assets 800 2,250 (10,294) - -
Other 12,829 2,504,661 959,186 1,864,537 -
Extraordinary gain and special items - 7,102,369 - - -
Transfers (70,500) (68,300) (111,469) (116,746) 975,000 Total business type activities 4,050 9,606,998 968,900 1,805,375 1,114,523 Total primary government 41,321,613 75,158,787 47,532,079 62,448,664 56,063,791 Changes in net position
Government activities 8,440,783 30,689,821 15,128,770 18,843,649 10,383,273 Business-type activities (954,973) 8,723,831 1,526,658 2,330,816 2,632,813 Total primary government $ 7,485,810 $ 39,413,652 $ 16,655,428 $ 21,174,465 $ 13,016,086 132 Attachment 1
City of Coronado Page 487

CITY OF CORONADO
2018-19 2019-20 2020-21 2021-22 2022-23
Fiscal Year

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(accrual basis of accounting)
TABLE 2
Net revenues (expenses):

Governmental activities (48,090,975) (53,525,509) (55,268,851) (44,423,253) (58,164,941) Business-type activities 214,088 1,602,536 1,795,906 3,898,799 1,626,018 Total net revenue (expenses) (47,876,887) (51,922,973) (53,472,945) (40,524,454) (56,538,923) GENERAL REVENUE AND OTHER CHANGES IN NET POSITION:

Governmental Activities:

Taxes:

Property Taxes 31,137,618 32,763,440 34,299,322 35,783,998 39,098,953 Transient occupancy taxes 15,650,765 10,993,396 9,595,095 19,745,307 22,741,252 Sales and use taxes 3,602,816 2,889,322 2,884,335 4,800,531 5,015,515 Franchise & Other taxes 2,030,015 1,910,180 2,159,854 1,639,188 2,052,307 Use of Money and Property 3,081,788 3,576,441 2,780,960 (3,648,551) 6,397,979 Other 215,313 200,619 84,942 304,696 1,011,620
Extraordinary gain and special items 364,695 - - - -
Transfers (1,325,000) (685,000) (685,000) (500,000) (610,487) Total governmental activities 54,758,010 51,648,398 51,119,508 58,125,169 75,707,139 Business type activities:

Use of Money and Property 483,689 750,237 188,830 (366,923) 1,809,778 Gain on sale of capital assets - - - - -
Other - - - - -
Extraordinary gain and special items - - - - -
Transfers 1,325,000 685,000 685,000 500,000 610,487
Total business type activities 1,808,689 1,435,237 873,830 133,077 2,420,265 Total primary government 56,566,699 53,083,635 51,993,338 58,258,246 78,127,404 Changes in net position
Government activities 6,667,035 (1,877,111) (4,149,343) 13,701,916 17,542,198 Business-type activities 2,022,777 3,037,773 2,669,736 4,031,876 4,046,283 Total primary government $ 8,689,812 $ 1,160,662 $ (1,479,607) $ 17,733,792 $ 21,588,481 (Concluded)
133 Attachment 1
City of Coronado Page 488

THIS PAGE INTENTIONALLY LEFT BLANK
134 Attachment 1
City of Coronado Page 489
Property Taxes
Sales and
Use Taxes
Transient
Occupancy
Taxes Tax Increment
Franchise &
Other Taxes Totals
23,186,424 3,258,208 12,442,925 - 1,476,654 40,364,211
24,557,604 3,493,272 13,763,729 - 1,606,790 43,421,395
27,011,615 4,041,392 13,818,817 - 1,186,785 46,058,609
27,680,962 3,338,149 14,577,717 - 2,082,265 47,679,093
29,515,386 3,383,032 15,264,023 - 2,185,830 50,348,271
31,137,618 3,602,816 15,650,765 - 2,030,015 52,421,214
32,763,440 2,889,322 10,993,396 - 1,910,180 48,556,338
34,299,322 2,884,335 9,595,095 - 2,159,854 48,938,606
35,783,998 4,800,531 19,745,307 - 1,639,188 61,969,024
39,098,953 5,015,515 22,741,252 - 2,052,307 68,908,027
2019-20
2018-19
2017-18
2021-22
2022-23
2020-21
(accrual basis of accounting)
TABLE 3

CITY OF CORONADO

GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE

LAST TEN FISCAL YEARS
Fiscal Year
2013-14
2014-15
2015-16
2016-17
135 Attachment 1
City of Coronado Page 490

CITY OF CORONADO
2013-14 2014-15 2015-16 2016-17
General fund:

Non-spendable $ 7,232,670 $ 4,130,959 $ 4,058,544 $ 3,627,332 Restricted 210,558 210,294 260,471 354,153
Committed 11,047,000 11,068,000 22,051,000 24,107,000
Assigned 19,334,284 24,015,402 17,468,480 18,527,767
Unassigned 39,983,327 36,870,315 24,062,440 23,820,586
Total general fund 77,807,839 76,294,970 67,900,935 70,436,838 All other governmental funds:

Nonspendable 3,461 - - -
Restricted 16,062,215 14,824,629 15,112,530 17,048,105
Assigned 3,465,428 5,080,752 21,047,743 29,202,441
Unassigned (84,229) - - -
Total all other governmental funds 19,446,875 19,905,381 36,160,273 46,250,546 Total Governmental funds $ 97,254,714 $ 96,200,351 $ 104,061,208 $ 116,687,384 Fiscal Year

FUND BALANCES OF GOVERNMENTAL FUNDS
TABLE 4

LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
136 Attachment 1
City of Coronado Page 491

CITY OF CORONADO
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
$ 3,406,472 $ 7,122,571 $ 9,163,218 $ 7,541,314 $ 6,824,963 $ 6,175,143 4,650,146 45,324,841 27,268,901 29,824,069 32,685,472 32,248,740 29,850,000 31,350,000 28,486,000 31,350,000 32,116,000 36,025,000 16,392,008 17,036,668 31,343,174 29,859,764 30,227,994 33,861,276 25,852,210 18,985,280 27,498,711 27,156,387 30,705,184 42,252,230 80,150,836 119,819,360 123,760,004 125,731,534 132,559,613 150,562,389 25,200 26,000 - 18,901 18,699 18,938
19,120,489 20,840,529 20,635,445 20,467,664 18,123,140 20,276,622 32,252,756 31,871,841 31,160,347 30,180,785 32,361,788 34,743,355 - - - - - -
51,398,445 52,738,370 51,795,792 50,667,350 50,503,627 55,038,915 $ 131,549,281 $ 172,557,730 $ 175,555,796 $ 176,398,884 $ 183,063,240 $ 205,601,304 NOTE:
(1) Substantial increases or decreases in fund balance components are explained in the Management Discussion and Analysis Section (MD&A).

Fiscal Year
TABLE 4
(modified accrual basis of accounting)

LAST TEN FISCAL YEARS

FUND BALANCES OF GOVERNMENTAL FUNDS
137 Attachment 1
City of Coronado Page 492

CITY OF CORONADO
2013-14 2014-15 2015-16 2016-17 2017-18
REVENUES:

Taxes $ 40,312,411 $ 43,621,796 $ 46,010,444 $ 47,552,533 $ 50,348,271 Licenses and permits 1,271,528 1,179,376 1,526,619 1,482,048 1,084,087 Intergovernmental 1,183,971 1,952,355 1,940,449 3,061,093 2,109,351 Charges for current services 5,331,693 5,514,599 7,420,789 6,923,874 7,208,311 Fines and forfeitures 409,897 369,467 360,399 333,356 360,984 Use of money and property 2,204,071 2,377,227 1,092,243 488,996 1,860,088 Miscellaneous 264,395 284,122 219,550 214,698 935,155
Contributions 11,277 - - - -
Reimbursements 1,374,495 1,612,238 1,559,759 3,340,125 1,543,355 Total revenues 52,363,738 56,911,180 60,130,252 63,396,723 65,449,602 EXPENDITURES:

Current:

General government 8,153,760 6,502,813 7,262,147 8,089,542 8,251,827 Public safety 16,703,497 23,013,782 18,748,416 19,642,662 19,755,841 Construction and maintenance 7,108,606 7,902,181 8,655,931 9,791,994 11,012,267 Culture and leisure 7,030,910 7,642,170 7,778,976 8,373,053 8,470,179 Planning and building services 1,552,343 1,652,353 1,722,191 2,040,854 2,001,280 Housing 216,698 219,782 275,743 - -
Transportation 151,825 178,076 - - -
Capital outlay 2,876,626 4,417,857 7,113,990 13,192,328 5,964,861 Debt service:

Principal retirement 45,011 45,946 23,323 - -
Interest and fiscal charges 1,928 993 147 - -
Total Expenditures 43,841,204 51,575,953 51,580,864 61,130,433 55,456,255

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 8,522,534 5,335,227 8,549,388 2,266,290 9,993,347 OTHER FINANCING SOURCES (USES):

Transfers in 1,591,108 1,293,500 19,352,230 19,331,945 6,057,826 Transfers out (1,520,608) (20,040,761) (21,162,880) (1,225,200) (7,032,826) Other debts issued - - - - -
Total Other financing sources (uses) 70,500 68,300 (688,531) (1,830,935) (975,000) Special item - (6,457,890) - 12,190,821 2,780,754
NET CHANGE IN FUND BALANCES $ 8,593,034 $ (1,054,363) $ 7,860,857 $ 12,626,176 $ 11,799,101 Debt service as a percentage of
noncapital expenditures 0.11% 0.10% 0.05% 0.00% 0.00%
TABLE 5
Fiscal Year

CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
138 Attachment 1
City of Coronado Page 493

CITY OF CORONADO
2018-19 2019-20 2020-21 2021-22 2022-23
REVENUES:

Taxes $ 52,421,214 $ 48,556,338 $ 48,938,606 $ 61,969,024 $ 69,430,171 Licenses and permits 1,205,799 1,114,095 817,558 817,934 676,855 Intergovernmental 1,814,836 3,142,932 2,601,328 5,520,884 4,699,074 Charges for current services 6,889,612 6,186,875 5,185,447 6,051,783 6,512,322 Fines and forfeitures 378,703 366,798 215,176 220,731 300,784 Use of money and property 3,081,788 3,576,441 2,780,960 (3,636,890) 6,560,293 Miscellaneous 215,313 200,619 84,942 304,696 1,021,925
Contributions - - - - -
Reimbursements 1,772,158 2,259,009 1,569,446 1,513,723 1,586,746 Total revenues 67,779,423 65,403,107 62,193,463 72,761,885 90,788,170 EXPENDITURES:

Current:

General government 9,022,893 9,945,290 10,354,476 10,997,768 12,333,936 Public safety 20,732,847 21,950,225 23,950,588 25,175,627 27,286,201 Construction and maintenance 11,377,360 11,770,733 12,072,194 12,031,555 12,538,668 Culture and leisure 9,559,748 8,473,309 7,055,799 8,309,747 9,313,892 Planning and building services 2,247,536 2,651,672 3,247,314 3,145,616 3,406,124 Housing - - - - -
Transportation - - - - -
Capital outlay 5,620,390 6,928,812 3,985,004 5,937,216 2,658,687 Debt service:

Principal retirement - - - - 170,157
Interest and fiscal charges - - - - 2,061
Total Expenditures 58,560,774 61,720,041 60,665,375 65,597,529 67,709,726

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 9,218,649 3,683,066 1,528,088 7,164,356 23,078,444 OTHER FINANCING SOURCES (USES):

Transfers in 3,885,000 2,356,000 930,000 3,005,000 3,184,042 Transfers out (5,210,000) (3,041,000) (1,615,000) (3,505,000) (3,794,529) Other debts issued - - - - 70,107
Total Other financing sources (uses) (1,325,000) (685,000) (685,000) (500,000) (540,380) Special item 33,114,800 - - - -
NET CHANGE IN FUND BALANCES $ 41,008,449 $ 2,998,066 $ 843,088 $ 6,664,356 $ 22,538,064 Debt service as a percentage of
noncapital expenditures 0.00% 0.00% 0.00% 0.00% 0.26%

CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
Fiscal Year
(Continued)
TABLE 5
(modified accrual basis of accounting)

LAST TEN FISCAL YEARS
139 Attachment 1
City of Coronado Page 494
City of Coronado
Fiscal Year Residential Commercial Industrial Institutional Recreational 2013-14 5,620,861,698 1,074,712,726 15,215,436 10,531,938 54,574,962 2014-15 5,966,251,521 1,105,765,812 14,115,750 10,502,491 50,582,167 2015-16 6,326,504,353 1,168,826,680 14,397,776 10,575,940 53,695,697 2016-17 6,695,110,976 1,193,591,828 14,617,337 10,620,183 61,272,073 2017-18 7,077,515,298 1,308,422,591 14,909,678 11,054,417 77,794,646 2018-19 7,477,649,124 1,354,802,642 15,207,869 11,139,141 91,807,350 2019-20 7,847,838,770 1,208,059,119 544,425 2,133,459 107,667,647 2020-21 8,223,965,445 1,264,113,491 555,312 2,178,259 131,324,744 2021-22 8,575,962,273 1,240,716,513 561,063 2,200,827 161,843,695 2022-23 9,177,671,403 1,460,371,038 572,283 2,244,845 182,419,498 Source: HdL Coren & Cone, San Diego County Assessor Combined Tax Rolls NOTE:
(1) In 1978, the voters of the State of California passed Proposition 13, which limited property taxes to a total minimum rate of 1%, based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point, the new assessed value is re-assessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available, with respect to the actual market value of taxable property, and is subject to the limitations described above.

ASSESSED VALUE OF TAXABLE PROPERTY

LAST TEN FISCAL YEARS
TABLE 6
140 Attachment 1
City of Coronado Page 495
City of Coronado
Total
Fiscal Year Vacant Land Cross Reference Unsecured Totals Direct Rate 2013-14 18,501,322 - 131,842,410 6,926,240,492 0.29651
2014-15 34,137,599 - 132,985,657 7,314,340,997 0.29650
2015-16 34,041,340 - 138,817,178 7,746,858,964 0.29364
2016-17 28,428,374 - 136,718,887 8,140,359,658 0.29817
2017-18 30,004,627 - 134,335,252 8,654,036,509 0.29653
2018-19 38,268,157 - 136,810,454 9,125,684,737 0.29739
2019-20 38,968,169 242,873,569 146,020,240 9,594,105,398 0.29805 2020-21 43,376,346 222,452,010 153,215,960 10,041,181,567 0.29869 2021-22 31,563,084 210,854,245 134,038,059 10,357,739,759 0.29918 2022-23 41,283,885 202,886,563 153,323,358 11,220,772,873 0.29918

ASSESSED VALUE OF TAXABLE PROPERTY
TABLE 6

LAST TEN FISCAL YEARS
(Continued)
141 Attachment 1
City of Coronado Page 496

CITY OF CORONADO
Total City's Share
South Bay Community Sweetwater Direct & of 1% Levy Redevel- Total Fiscal County School School College High Overlapping Per opment Direct Year Base District Bond District Bond Rate Prop 13 Rate Rate 2013-14 1.00000 0.01197 0.07671 0.03675 0.05823 1.18366 0.26235 - 0.29258 2014-15 1.00000 0.01199 0.07631 0.03582 0.05407 1.17819 0.26235 - 0.29364 2015-16 1.00000 0.01070 0.07167 0.03961 0.05169 1.17367 0.26235 - 0.29466 2016-17 1.00000 0.01053 0.05703 0.03856 0.05162 1.15774 0.26235 - 0.29549 2017-18 1.00000 0.00977 0.06300 0.04981 0.05156 1.17414 0.26235 - 0.29653 2018-19 1.00000 0.00944 0.06595 0.04671 0.05283 1.17493 0.26235 - 0.29739 2019-20 1.00000 0.00924 0.06588 0.04482 0.05159 1.17153 0.26235 - 0.29805 2020-21 1.00000 0.00908 0.06337 0.02792 0.04880 1.14917 0.26235 - 0.29869 2021-22 1.00000 0.00846 0.06107 0.04854 0.04611 1.16418 0.26235 - 0.29918 2022-23 1.00000 0.01025 0.05840 0.04215 0.06911 1.17991 0.26235 - 0.30050 Source: County of San Diego, Office of the Auditor and Controller NOTES:

TABLE 7
(PER $100 OF ASSESSED VALUE) LAST TEN FISCAL YEARS

PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS (1) In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. (2) Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city property owners.
(3) City's share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city. ERAF general fund tax shifts may not be included in tax ration figures. (4) Redevelopment Rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012/13 and years thereafter. 142 Attachment 1
City of Coronado Page 497

CITY OF CORONADO
Taxpayer
Taxable
Assessed
Value
Percent of
Total City
Taxable
Assessed
Value
Taxable
Assessed
Value
Percent of
Total City
Taxable
Assessed
Value
BSK Del Partners LLC $ 794,795,627 7.08% $ 585,016,920 8.45% PR III Broadstone Coronado LLC 184,247,807 1.64% - 0.00% Coronado Commonwealth APTS INC - 0.00% 89,306,471 1.29% Host Hotels and Resorts LP 106,482,948 0.95% 84,284,946 1.22% Bar LSR Investments INC 89,254,275 0.80% - 0.00%
51st and 8th Avenue Corporation 65,600,131 0.58% 80,070,551 1.16% Jeff and Sharon Stevens - 0.00% 24,602,367 0.36%
HDC South Beach Development LLC 77,875,140 0.69% - 0.00% Hotel Del Partners LP - 0.00% 16,439,766 0.24%
Kabir Bluestar LLC 38,040,891 0.34% - 0.00%
Shops at Coronado LLC 24,154,799 0.22% - 0.00%
Madison-Desplaines Development LLC 23,724,800 0.21% - 0.00% Pref Coronado Plaza LLC - 0.00% 17,800,000 0.26%
Boden Family Investments II LLC 23,222,201 0.21% 16,995,000 0.25% Invercor 901 LLC - 0.00% 12,316,560 0.18%
James T. and Tally J. Nathan - 0.00% 14,691,457 0.21%
Principal Taxpayers' Totals $ 1,427,398,619 12.72% 941,524,038 $ 13.59% City Totals $ 11,220,772,873 $ 6,926,240,492
The amounts shown above include assessed value data for both the City and the Community Development Successor Agency.

Source: HdL Coren & Cone, San Diego County Assessor Combined Tax Rolls

PRINCIPAL PROPERTY TAXPAYERS BASED ON GROSS ASSESSED VALUES

CURRENT FISCAL YEAR AND NINE YEARS AGO
TABLE 8
2022-23 2013-14
143 Attachment 1
City of Coronado Page 498

CITY OF CORONADO
Percent
Fiscal Total Current Tax of Levy Total Tax
Year Tax Levy Collections Collected Collections
2013-14 $19,394,490 $19,378,938 99.9% $13,382 $19,392,320 100.0% 2014-15 $20,557,361 $20,543,444 99.9% $4,319 $20,547,763 100.0% 2015-16 $21,905,678 $21,897,086 100.0% $15,742 $21,912,828 100.0% 2016-17 $23,170,229 $23,155,837 99.9% $10,024 $23,165,861 100.0% 2017-18 $24,699,447 $24,688,752 100.0% $11,861 $24,700,613 100.0% 2018-19 $26,125,997 $26,111,620 99.9% $13,724 $26,125,344 100.0% 2019-20 $27,552,215 $27,527,605 99.9% $13,667 $27,541,272 100.0% 2020-21 $28,850,223 $28,828,056 99.9% $12,864 $28,840,920 100.0% 2021-22 $30,005,970 $29,984,597 99.9% $1,885 $29,986,482 99.9% 2022-23 $39,014,969 $38,973,361 99.9% $4,187 $38,977,548 99.9% Source: San Diego County Auditor and Controller's Office Percent of
Total Tax
Collections to
Tax Levy
Delinquent
Tax
Collections
TABLE 9

LAST TEN FISCAL YEARS

GENERAL PROPERTY TAX LEVIES AND COLLECTIONS
144 Attachment 1
City of Coronado Page 499

THE CITY OF CORONADO
Fiscal Year
Revenue
Bond Debt Capital Lease Population (1)
Debt per
Capita
Number of
Units (2)
Debt per
Unit
2013-14 142 11,562 290
2014-15 1 11,562 2
2015-16 - 11,562 -
2016-17 - n/a -
2017-18 - n/a -
2018-19 - n/a -
2019-20 - n/a -
2020-21 - n/a -
2021-22 - n/a -
2022-23 - n/a -
Source:

SCHEDULE OF DEBT RATIOS

LAST TEN FISCAL YEARS
TABLE 10
3,280,000 69,276 23,577
- 23,330 23,695
- - 25,043
- - 24,314
- - 21,416
- - 23,880
- - 21,422
- - 22,357
- - 22,007
- - 22,150
(1) State Department of Finance, Demographics Unit
;
HdL Coren & Cone
(2) City of Coronado Public Services Department
145 Attachment 1
City of Coronado Page 500

CITY OF CORONADO

SCHEDULE OF DIRECT AND OVERLAPPING DEBT
JUNE 30, 2023
TABLE 11
Total Debt
June 30, 2023
% Applicable
(1)
Estimated Share of
Debt June 30, 2023
Direct Debt:

City of Coronado $ - 100.000% $ -
Overlapping Tax and Assessment Debt:

Southwestern Community College District $758,359,345 15.594% $ 118,258,556 Coronado Unified School District 4,662,194 100.000% 4,662,194 Sweetwater Union High School District 617,301,738 0.001% 6,173 South Bay Union School District 7,708,572 0.011% 8,658
Total Overlapping Tax and Assessment Debt $ 122,935,581 Overlapping General Fund Debt:

San Diego County General Fund Obligations $229,680,000 1.708% $ 3,922,934 San Diego County Pension Obligations 277,990,000 1.708% 4,748,069 San Diego County Superintendent of Schools
Obligations

6,935,000

1.708%

118,450
Southwestern Community College District Certificates
of Participation 260,000 15.594% 40,544
Coronado Unified School District Certificates of
Participation 16,418,114 100.000%

16,418,114
Sweetwater Union High School District General Fund
Obligations $ 770,000 0.001% 8
Total Overlapping General Fund Debt $ 25,248,119
OVERLAPPING TAX INCREMENT DEBT (Successor
Agency):
$ 79,435,000 100.000% $ 79,435,000
COMBINED TOTAL DEBT $ 227,618,700 (2)
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.

Source: California Municipal Statistics, Inc.
146 Attachment 1
City of Coronado Page 501
Net assessed value of all taxable property $ 11,220,772,873 Conversion percentage 25.00%
Adjusted assessed valuation 2,805,193,218
Debt limit percentage 15.00%
Debt limit 420,778,983
Total net debt applicable to limit -
Legal debt margin $ 420,778,983
The City of Coronado has had no indebtedness applicable to the limit during the past ten fiscal years.

Source: City of Coronado Administrative Services Department

CITY OF CORONADO
TABLE 12
JUNE 30, 2023

SCHEDULE OF LEGAL DEBT MARGIN
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuations. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt was enacted by the State of California for local governments located within the state.
147 Attachment 1
City of Coronado Page 502
Fiscal
Year Ended
June 30
Storm Drain User
Charges Principal Interest Coverage
2013-14 537,713 200,000 161,825 1.49
2014-15 * 573,055 - - -
2015-16 * 574,997 - - -
2016-17 * 602,653 - - -
2017-18 * 651,852 - - -
2018-19 * 731,814 - - -
2019-20 * 677,479 - - -
2020-21* 646,526 - - -
2021-22* 672,044 - - -
2022-23* 672,044 - - -
Source: City of Coronado Administrative Services Department * Bond was defeased in 2014
TABLE 13

CITY OF CORONADO

PLEDGED REVENUE COVERAGE

STORM DRAIN REVENUE BONDS

LAST TEN FISCAL YEARS
148 Attachment 1
City of Coronado Page 503

CITY OF CORONADO
Calendar
Year
Population
(1) % Change
Per Capita
Personal
Income (2)
Labor
Force (3)
Unemployment Rate (4)
2013-14 23,577 1.3% 46,222 9,000 3.7%
2014-15 23,695 0.5% 48,367 8,400 2.7%
2015-16 25,043 5.7% 46,752 9,000 2.9%
2016-17 24,314 -2.9% 48,845 8,800 2.7%
2017-18 21,416 -11.9% 59,226 9,300 3.0%
2018-19 23,880 11.5% 54,195 8,800 3.3%
2019-20 21,422 -10.3% 63,072 7,300 3.4%
2020-21 22,357 -6.4% 65,004 8,100 6.2%
2021-22 22,007 2.7% 65,004 8,100 3.3%
2022-23 22,150 -0.9% 61,904 8,200 3.6%
Sources:

TABLE 14

LAST TEN FISCAL YEARS

DEMOGRAPHIC AND ECONOMIC STATISTICS
City population fluctuates annually due to change in numbers of military personnel living on military installations at time of report.
(3) & (4) State of California Employment Development
(1) State Department of Finance, Demographics Unit & HdL Coren & Cone (2) HdL Coren & Cone
149 Attachment 1
City of Coronado Page 504

CITY OF CORONADO
Taxpayer 2022-23 2013-14
U.S.Navy (North Island Naval Air Station, et al) Military & Civilian 11,000 - 14,999 11,000 - 14,999 Branch Health Clinic North Island NAS 5,000 - 9,999 N/A Hotel Del Coronado 1,000 - 4,999 1,000 - 4,999
Loews Hotels Coronado Bay Resort 250 - 499 500 - 999
Sharp Coronado Hospital 250 - 499 500 - 999
City of Coronado 250 - 499 250 - 499
Marriott-Coronado Island 100 - 249 250 - 499
Coronado Unified School District 100 - 199 250 - 499
Vons 50 - 99 N/A
Peohe's Restaurant 50 - 99 100 - 249
BAE Systems (marine equip. & supplies) 100-249 100 - 249 Realty Executives Dillon 50-99 50 - 99
Source: City of Coronado and A to Z Databases
PRINCIPAL EMPLOYERS (By Employee Size)
JUNE 30, 2023 AND JUNE 30, 2014
TABLE 15
150 Attachment 1
City of Coronado Page 505

CITY OF CORONADO
Function 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 General government 21.00 21.00 23.00 25.00 25.00 25.00 26.00 26.00 26.00 26.00 Planning and building services 10.75 10.75 10.60 10.00 10.00 13.00 13.00 13.00 13.00 13.00 Public safety 105.25 105.25 105.25 108.25 108.25 109.25 111.00 111.00 112.25 112.25 Culture and leisure 45.00 45.00 43.50 45.00 45.00 44.50 45.00 45.00 45.00 45.00 Construction and maintenance 51.25 51.25 51.90 53.50 53.50 52.50 55.00 55.00 54.50 54.50 Total 233.25 233.25 235.25 241.75 241.75 245.25 250.00 250.00 250.75 250.75 Source: City Personnel Authorization and Compensation Plan

FULL-TIME AND PART-TIME CITY EMPLOYEES

LAST TEN FISCAL YEARS
TABLE 16
151 Attachment 1
City of Coronado Page 506

CITY OF CORONADO
2013-14 2014-15 2015-16 2016-17 2017-18
Public Safety:

Felony arrests made 124 130 119 146 146
Misdemeanor arrests made 707 741 749 684 684
Parking citations issued 7,956 7,563 4,812 6,640 5,755
Fire emergency responses 1,853 2,061 2,080 1,927 1,927
Building safety inspections 443 429 212 161 161
Beach lifeguard rescues 280 255 681 196 196
Construction and Maintenance (a):

Roads re-surfaced (miles) 1.50 0.00 0.00 0.50 0.50
Sidewalks re-surfaced (miles) 0.10 0.00 0.00 0.00 0.00
Alleys re-surfaced (miles) 0.00 0.32 0.00 0.00 0.00
Roads slurry sealed (miles) 3.40 3.85 4.01 4.09 4.09
Planning and Building:

Building permits issued 909 1,074 1,232 1,160 1,017
Building inspections 6,030 7,811 8,275 8,086 7,449
Culture and Leisure:

Library volumes in collection 165,374 165,843 163,529 162,006 216,689 Library audio-visual items in collection 36,665 38,511 34,627 38,881 50,546 Library items loaned 332,425 276,720 276,158 235,463 232,322 Library user traffic 334,625 324,809 306,206 312,351 278,363 Recreation classes/activities held 1,541 1,341 1,317 1,218 1,253 Pool admissions 60,120 57,648 59,798 45,948 29,582
Facility rentals 846 834 796 778 2,207
Golf rounds played 93,452 87,730 84,806 84,253 87,351
Wastewater/Storm Drain:

Residential units 11,208 11,208 11,237 11,237 11,237
Commercial units 547 547 557 557 557
Average daily treatment, estimated (millions/gallons) 2.7 2.7 2.5 2.4 2 (a) Projects completed and capitalized during the fiscal year Source: City of Coronado Operating Departments
Fiscal Year

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
TABLE 17
152 Attachment 1
City of Coronado Page 507

CITY OF CORONADO
2018-19 2019-20 2020-21 2021-22 2022-23
Public Safety:

Felony arrests made 130 110 101 115 133
Misdemeanor arrests made 723 588 522 384 395
Parking citations issued 9,371 7,773 6,331 4,863 8,128
Fire emergency responses 2,216 1,856 1,958 2,395 2,808
Building safety inspections 50 141 0 81 426
Beach lifeguard rescues 202 445 642 480 249
Construction and Maintenance (a):

Roads re-surfaced (miles) 0.00 1.10 0.33 0.69 0.70
Sidewalks re-surfaced (miles) 0.10 0.15 0.08 1.12 0.80
Alleys re-surfaced (miles) 0.00 0.00 0.00 0.00 0.00
Roads slurry sealed (miles) 0.00 9.50 6.00 3.22 4.30
Planning and Building:

Building permits issued 980 888 849 859 973
Building inspections 6,783 6,293 6,332 6,629 6,730
Culture and Leisure:

Library volumes in collection 216,513 177,489 170,421 172,625 179,580 Library audio-visual items in collection 51,426 66,268 35,443 30,513 32,373 Library items loaned 245,896 216,010 208,682 167,507 159,299 Library user traffic 293,649 244,436 114,933 79,190 396,645 Recreation classes/activities held 1,115 831 403 831 842 Pool admissions 27,558 20,886 39,426 60,816 48,150
Facility rentals 2,045 1,135 133 293 324
Golf rounds played 88,203 82,140 109,621 102,857 96,605 Wastewater/Storm Drain:

Residential units 11,245 11,795 11,795 11,801 9,189
Commercial units 563 563 563 580 975
Average daily treatment, estimated (millions/gallons) 2 2 1.5 2.0 2.0 Fiscal Year
TABLE 17
(Continued)
153 Attachment 1
City of Coronado Page 508

CITY OF CORONADO
2013-14 2014-15 2015-16 2016-17 2017-18
Public Safety:

Number of police stations 1 1 1 1 1
Number of fire stations 2 2 2 2 2
Construction and Maintenance:

Streets (miles) 40.4 40.4 40.4 40.4 40.4
Sidewalks (miles) 34.3 34.3 34.3 34.3 34.3
Alleys (miles) 9.9 9.9 9.9 9.9 9.9
Streetlights 348 348 348 348 348
Culture and Leisure:

Number of parks 18 18 18 18 18
Acres of parks 46.9 46.9 46.9 46.9 46.9
Community centers 1 1 1 1 1
Municipal pools 2 2 2 2 2
Municipal golf course 1 1 1 1 1
Public library 1 1 1 1 1
Tennis center 1 1 1 1 1
Senior center 1 1 1 1 1
Bike path (miles) 9.8 9.8 9.8 9.8 9.8
Skatepark 1.0 1.0 1.0 1.0 1.0
Wastewater:

Sanitary sewers (miles) 45.8 45.8 45.8 45.8 45.8
Storm drains (miles) 8.5 8.5 8.5 8.5 8.5
Fiscal Year

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
TABLE 18
154 Attachment 1
City of Coronado Page 509

CITY OF CORONADO
2018-19 2019-20 2020-21 2021-22 2022-23
Public Safety:

Number of police stations 1 1 1 1 1
Number of fire stations 2 2 2 2 2
Construction and Maintenance:

Streets (miles) 40.4 40.4 40.4 40.4 40.4
Sidewalks (miles) 34.3 34.3 34.3 34.3 34.3
Alleys (miles) 9.9 9.9 9.9 9.9 9.9
Streetlights 348 348 348 348 348
Culture and Leisure:

Number of parks 18 18 18 18 18
Acres of parks 46.9 46.9 46.9 46.9 46.9
Community centers 1 1 1 1 1
Municipal pools 2 2 2 2 2
Municipal golf course 1 1 1 1 1
Public library 1 1 1 1 1
Tennis center 1 1 1 1 1
Senior center 1 1 1 1 1
Bike path (miles) 9.8 9.8 9.8 9.8 9.8
Skatepark 1.0 1.0 1.0 1.0 1.0
Wastewater:

Sanitary sewers (miles) 45.8 45.8 45.8 45.8 45.8
Storm drains (miles) 8.5 8.5 8.5 8.5 8.5
Source: City of Coronado Statistical Information, FY23 Adopted Budget Pg 21 (Continued)
Fiscal Year

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
TABLE 18
155 Attachment 1
City of Coronado Page 510

THIS PAGE INTENTIONALLY LEFT BLANK
156 Attachment 1
City of Coronado Page 511
Honorable Mayor and Members of City Council
City of Coronado
Coronado, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Coronado (the “City”) as of and for the year ended June 30, 2023, and have issued our report thereon dated July 5, 2024. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit As communicated in our engagement letter dated October 10, 2023, our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.

Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, our firm, and our network firms have complied with all relevant ethical requirements regarding independence under the American Institute of Certified Public Accountants (“AICPA”) independence standards, contained in the Code of Professional Conduct.

We identified self-review threats to independence as a result of non-attest services provided. Those non-attest services included recording journal entries detected during the audit process and preparing the financial statements.

Attachment 2
City of Coronado Page 512
To mitigate the risk, management has compared the draft financial statements and footnotes to the underlying accounting records to verify accuracy and has reviewed a disclosure checklist to ensure footnotes are complete and accurate. Additionally, we utilize a quality control reviewer to perform a second review of journal entries and the financial statements. We believe these safeguards are sufficient to reduce the independence threats to an acceptable level.

Significant Risks Identified
We have identified the following significant risks:
 The implementation of Governmental Accounting Standards Board No. 96 – Subscription-Based Information Technology (IT) Arrangements. As a result, we reviewed the support for 100% of the payables related to Subscription-Based IT Arrangements. We compared the terms of the agreements to the information included in the calculation of the payable.
 Compliance with Federal Grant Requirements. We reviewed the City’s schedule of federal expenses and selected major programs to test for compliance with federal grant requirements.

Qualitative Aspects of the Entity’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City is included in Note 1 to the financial statements. As described in Note 1(v) to the financial statements during the year, the City changed accounting policies related to Subscription-Based Information Technology (IT) Arrangements by adopting GASB Statement No. 96, Subscription-Based Information Technology Arrangements. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on 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 markedly from management’s current judgments.

The most sensitive accounting estimates affecting the financial statements are:
 Management’s estimate of which capital projects represent ordinary maintenance activities necessary to keep an asset operational for its originally intended useful life versus significant improvement, replacement, and life extending projects that should be capitalized as additions to capital assets is based on management’s knowledge of the assets and their useful lives. We evaluated the key factors and assumptions used to develop the amounts added to capital assets in determining that it is reasonable in relation to the financial statements taken as a whole.

Attachment 2
City of Coronado Page 513
 Management’s estimate of transactions related to net pension liabilities based on actuarial information. We evaluated the key factors and assumptions used to develop the amounts by the actuary and determined that it is reasonable in relation to the financial statements taken as a whole.
 Management’s estimate of transactions related to net OPEB liabilities based on actuarial information. We evaluated the key factors and assumptions used to develop the amounts by the actuary and determined that it is reasonable in relation to the financial statements taken as a whole.

Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City’s financial statements relate to:
 The disclosure of pension plan obligations in note 10 to the financial statements.  The disclosure of post-employment health benefits in note 11 to the financial statements.

Significant Unusual Transactions
For purposes of this communication, professional standards require us to communicate to you significant unusual transactions identified during our audit. There were no such transactions.

Significant Difficulties Encountered during the Audit
While we received full cooperation of management and believe that we were given direct and unrestricted access to the City’s books and records, as we disclosed in the management letter, we encountered challenges in performing and completing the audit process within the planned timeline. Primarily, these difficulties related to the turnover of staff, which resulted in delays to the completion of the audit.

Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards also require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. We did not identify any uncorrected financial statement misstatements.

In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. Below are material misstatements as a result of our audit procedures.  $1.5 million to correct accounts receivable and revenue related to property tax and transient occupancy tax.
 $2.5 million to correct deferred inflows and outflows related to pension.

Attachment 2
City of Coronado Page 514
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Circumstances that Affect the Form and Content of the Auditor’s Report For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. There were none.

Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated July 5, 2024.

Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, significant events or transactions that occurred during the year, operating and regulatory conditions affecting the entity, and operational plans and strategies that may affect the risks of material misstatement.

None of the matters discussed resulted in a condition to our retention as the City’s auditors.

Other Information Included in Annual Comprehensive Financial Report Pursuant to professional standards, our responsibility as auditors for other information, whether financial or nonfinancial, included in the City’s annual report, does not extend beyond the information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. However, in accordance with such standards, we have read the information and considered whether such information, or the manner of its presentation, was materially inconsistent with its presentation in the financial statements.

Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

This report is intended solely for the information and use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties.

Irvine, California
July 5, 2024
Attachment 2
City of Coronado Page 515
INDEPENDENT ACCOUNTANT’S REPORT
The Honorable Mayor and City Council
City of Coronado, California
We have performed the procedures enumerated below on the City of Coronado, California (City) appropriations limit worksheets for compliance with the requirements of Section 1.5 of Article XIIIB of the California Constitution for the year ended June 30, 2023. The City is responsible for compliance with Section 1.5 of Article XIIIB of the California Constitution.

The City has agreed to and acknowledged that these procedures are appropriate to meet the intended purpose of evaluating compliance with the requirements of Section 1.5 of Article XIIIB of the California Constitution and the League of California Cities publication entitled Article XIIIB Appropriations Limitation Uniform Guidelines for the year ended June 30, 2023. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and the associated findings are as follows:

1. We obtained the worksheets referred to above 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 City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote.

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

2. We recalculated the mathematical computations reflected in the City’s worksheets.

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

3. We compared the current year information used to determine the current year limit and agreed it to worksheets prepared by the City and to information provided by the State Department of Finance.

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

4. We compared the amount of the prior year appropriations limit presented in the worksheets to the amount adopted by the City Council for the prior year.

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

Attachment 3
City of Coronado Page 516
The Honorable Mayor and City Council
City of Coronado, California
Page Two
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review, the objective of which would be the expression of an opinion or conclusion, respectively on the worksheets referred to above. 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.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our agreed-upon procedures engagement.

This report is intended solely for the information and use of the Management of the City of Coronado, California and is not intended to be, and should not be, used by anyone other than the specified party.

Irvine, California
July 5, 2024
Attachment 3
City of Coronado Page 517

CITY OF CORONADO
Coronado, California
Single Audit Report on Federal Awards
Year ended June 30, 2023
Attachment 4
City of Coronado Page 518

CITY OF CORONADO
Single Audit Report on Federal Awards
Year ended June 30, 2023

TABLE OF CONTENTS

Page
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 1
Report on Compliance for Each Major Federal Program; Report on Internal Control over Compliance; and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance 3
Schedule of Expenditures of Federal Awards 6
Notes to the Schedule of Expenditures of Federal Awards 7 Schedule of Findings and Questioned Costs 8
Summary Schedule of Prior Audit Findings 12
Attachment 4
City of Coronado Page 519

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING

STANDARDS
Independent Auditor’s Report
City Council
City of Coronado
Coronado, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Coronado (“City”) as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise City of Coronado’s basic financial statements, and have issued our report thereon dated July 5, 2024.

Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

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

Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We identified certain deficiencies in internal control, described in the accompanying Schedule of Findings and Questioned Costs, as items 2023-001, 2023-002, 2023-003 that we consider to be material weaknesses.
1 Attachment 4
City of Coronado Page 520
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed one item of noncompliance required to be reported under Government Auditing Standards, and which is described in the accompanying Schedule of Findings and Questioned Costs as item 2023-003.

City’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our engagement and described in the accompanying Schedule of Findings and Questioned Costs. The City’s responses were not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Irvine, California
July 5, 2024
2 Attachment 4
City of Coronado Page 521
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; AND REPORT ON

THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

REQUIRED BY THE UNIFORM GUIDANCE
Independent Auditor’s Report
City Council
City of Coronado
Coronado, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Coronado’s (“City”) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2023. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2023.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s federal programs.
3 Attachment 4
City of Coronado Page 522
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
4 Attachment 4
City of Coronado Page 523
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon, dated July 5, 2024, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements.

Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements and certain additional procedures including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Irvine, California
July 5, 2024
5 Attachment 4
City of Coronado Page 524
Federal
Program Assistance Financial Amount
Federal Grantor/Pass-through Identification Listing Assistance Paid to Grantor/Program Title Number Number Expenditures Subrecipients U.S. Department of Housing and Urban Development
Direct Programs:

Community Development Block Grant Entitlement Cluster:

Community Development Block Grant B-20-UC-06-0501 14.218 $ 24,604 $ - Community Development Block Grant B-21-UC-06-0501 14.218 14,329 - Subtotal of Community Development Block Grant Entitlement Cluster 38,933 - Total - U.S. Housing and Urban Development 38,933 -
U.S. Department of Homeland Security
Passed through the County of San Diego, OES:
2020 State Homeland Security Grant Program (SHSP) EMW-2020-SS-00095-S01 97.067 6,686 - Total - U.S. Department of Homeland Security 6,686 -
U.S. Department of Justice
Direct Programs:

Bulletproof Vest Partnership Program
BVP (Bulletproof Vests) (100-5750) 2020BUBX20022889 16.607 5,608 - Equitable Sharing Program:

Asset Forfeiture (DEA, US Marshalls) N/A 16.922 22,775 - Narcotics Task Force Reimbursement / DCESP N/A 16.922 19,763 - Joint Terrorism Task Force (FBI) N/A 16.922 3,691 -
Total - U.S. Department of Justice 51,837 -
U.S. Department of the Treasury
Passed through the State of California:

Coronavirus State and Local Fiscal Recovery Fund 1505-0271 21.027 2,838,480 - Total - U.S. Department of the Treasury 2,838,480 -
U.S. Department of National Highway Traffic Safety Administration Direct Programs:

Highway Safety Cluster:

National Priority Safety Program:

Ride to Live (2021) 69A3752130000405FCA1 20.616 5,269 - Ride to Live (2022) 69A3752030000405FCA1 20.616 28,420 - Subtotal Highway Safety Cluster 33,689 -
Total - U.S. Department of National Highway Traffic Safety Administration 33,689 - Total Expenditures of Federal Awards $ 2,969,625 $ -

CITY OF CORONADO
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2023
See notes to schedule of expenditures of federal awards 6 Attachment 4
City of Coronado Page 525

CITY OF CORONADO
Notes to the Schedule of Expenditures of Federal Awards Year ended June 30, 2023
(1) Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards
(a) Scope of Presentation
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of each of the City of Coronado’s major programs of the federal government for the year ended June 30, 2023. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”).

Because the Schedule presents only a selected portion of the operations of the City of Coronado, it is not intended to and does not present the financial position, changes in net assets or cash flows of the City of Coronado. The City has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
(b) Basis of Accounting
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards wherein certain types of expenditures are not allowable or are limited as to reimbursement.
(c) Subrecipients
During the fiscal year ended June 30, 2023, the City of Coronado did not disburse any funds to subrecipients.
7 Attachment 4
City of Coronado Page 526

CITY OF CORONADO
Schedule of Findings and Questioned Costs
Year Ended June 30, 2023
Section I - Summary of Auditor's Results
Financial Statements

1. Type of auditor's report issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified

2. Internal control over financial reporting:
a. Material weakness(es) identified? Yes
2023-001
2023-002
2023-003
b. Significant deficiency(ies) identified? No

3. Noncompliance material to the financial statements noted? Yes 2023-003
Federal Awards

1. Internal control over major programs:
a. Material weakness(es) identified? No
b. Significant deficiency(ies) identified? No

2. Type of auditors’ report issued on compliance for major programs:

Unmodified

3. Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516 (a)? No

4. Identification of major programs:

Assistance Listing Number Name of Federal Program or Cluster

21.027 Coronavirus State and Local Fiscal
Recovery Funds

5. Dollar threshold used to distinguish between Type A and Type B programs: $750,000

6. Auditee qualified as a low-risk auditee? No
8 Attachment 4
City of Coronado Page 527

CITY OF CORONADO
Schedule of Findings and Questioned Costs
Year Ended June 30, 2023
Section II - Financial Statement Findings
There are three financial statement findings that qualified for reporting in this category.

Finding 2023-001 – Timely and Accurate Financial Reports We noted the City’s accounting and reporting processes were delayed for the fiscal year ended June 30, 2023. The City experienced a significant turnover in key staff, as well as a new system implementation that resulted in significant delays in recording of daily transactions and timely reporting. As a result, we were not able to begin the final stage of the audit until February 2024 and concluded in May 2024. Delays in receiving timely and current financial information can be significantly impact management’s ability to effectively guide an organization.

Recommendation
We recommend management take steps necessary to ensure daily accounting transactions are recorded in a timely manner and year end closing journal entries are accurate and recorded. This may require the hiring of additional staff to bring the current books and records up to date. If it is determined that the department is understaffed, steps should be taken to alleviate this problem so that work can remain current without undue hardship for any one employee.

Management’s Response Regarding Corrective Action Taken or Planned As noted by the auditor, the City experienced a significant turnover in key staff and challenges in hiring consistent temporary help during numerous vacancies. The City has been actively recruiting for vacant positions, and the staffing level will be evaluated as key positions are fully or close to being fully staffed. The management also continues to work on certain post go-live implementations of additional features and functionalities of the new system to enhance the streamlining of financial workflows.

Finding 2023-002 – Material Audit Adjustments
During our audit, we had approximately 5 journal entries detected as a result of audit procedures.

Recommendation
We recommend the City establish procedures to identify adjustments in the reporting period in which the related transactions occurred. In addition, management should take time to review account balances at year-end to ensure all adjusting journal entries have been properly recorded.
9 Attachment 4
City of Coronado Page 528

CITY OF CORONADO
Schedule of Findings and Questioned Costs
Year Ended June 30, 2023
Section II - Financial Statement Findings (Continued)
Management’s Response Regarding Corrective Action Taken or Planned The new team of City staff assigned to their first year of audit required these additional journal entries to be provided as the mostly related to necessary adjustments identified during the preparation of audit-related schedules and inquiries. We expect greater continuity of staff for next year’s audit, which will help improve the City’s preparation and review process for various audit-related schedules. The City will also review all journal entries proposed by the City and the auditors in this year’s audit to ensure that all applicable adjustments are properly recorded as part of next year’s final trial balance preparation.

Finding 2023-003 – Preparation of the Single Audit
“Upon the completion of the single audit, the reporting package (described in paragraph 5.38) and the data collection form (described in paragraph 5.39) must be electronically submitted by the auditee to the FAC. That submission must be completed within the earlier of 30 calendar days after receipt of the auditor’s reports or 9 months after the end of the audit period. If the due date falls on a Saturday, Sunday, or federal holiday, the reporting package is due the next business day.”
The City exceeded the reporting threshold of $750,000 in federal expenditures during the year ended June 30, 2023, and the Single Audit was due March 31, 2024. The City experienced a significant turnover in key staff, as well as a new system implementation that resulted in delays completing the single audit.

Recommendation
We recommend the City work toward completing subsequent single audits within the timeframe prescribed above.

Management’s Response Regarding Corrective Action Taken or Planned The City experienced significant turnover in key staff and challenges in hiring consistent temporary help during numerous vacancies. The City has been actively recruiting for vacant positions, and the staffing level will be evaluated as key positions are fully or close to being fully staffed. The management also continues to work on certain post go-live implementations of additional features and functionalities of the new system to enhance the streamlining of financial workflows.
10 Attachment 4
City of Coronado Page 529

CITY OF CORONADO
Schedule of Findings and Questioned Costs
Year Ended June 30, 2023
Section III – Federal Award Findings and Questioned Costs There were no federal award findings for the year ended June 30, 2023. 11 Attachment 4
City of Coronado Page 530

CITY OF CORONADO
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2023
Section IV – Summary of Prior Audit Findings and Current Status Finding 2022-001 – Timely and Accurate Financial Reports We noted the City’s accounting and reporting processes were delayed for the fiscal year ended June 30, 2022. The City experienced significant turnover in key staff, as well as a new system implementation that resulted in significant delays in recording of daily transactions and timely reporting. As a result, we were not able to begin the final stage of the audit until February 2023 and concluded in August 2023. Delays in receiving timely and current financial information can significantly impact management’s ability to effectively guide an organization.

Status of Corrective Action
The finding has been repeated as 2023-001.

Finding 2022-002 – Material Audit Adjustments and Excessive Journal Entries During our audit, we were provided with a significant number of journal entries after we received the final trial balance. In addition, we had approximately 6 journal entries detected as a result of audit procedures. Of the journal entries proposed as a result of our audit procedures, one resulted in a material prior period adjustment to the Wastewater Fund.

Status of Corrective Action
There was a significant decrease in the number of journal entries after receiving the final trial balance. However, there were 5 journal entries detected as a result of audit procedures. The material adjustments finding has been repeated as 2023-002.

Finding 2023-003 – Preparation of the Single Audit
“Upon the completion of the single audit, the reporting package (described in paragraph 5.38) and the data collection form (described in paragraph 5.39) must be electronically submitted by the auditee to the FAC. That submission must be completed within the earlier of 30 calendar days after receipt of the auditor’s reports or 9 months after the end of the audit period. If the due date falls on a Saturday, Sunday, or federal holiday, the reporting package is due the next business day.”
The City exceeded the reporting threshold of $750,000 in federal expenditures during the year ended June 30, 2022, and the Single Audit was due March 31, 2023. The City experienced a significant turnover in key staff, as well as a new system implementation that resulted in delays completing the single audit.

Status of Corrective Action
The finding has been repeated as 2023-003.
12 Attachment 4
City of Coronado Page 531
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH APPLICABLE

REQUIREMENT AND ON INTERNAL CONTROL OVER COMPLIANCE
To the Honorable Mayor and Members of the City Council
City of Coronado, California
Report on Compliance for the Housing Successor
Opinion
We have audited the City of Coronado Housing Successor (Housing Successor) with the type of compliance requirements described in the California Health and Safety Code sections applicable to California Housing Successor Agencies for the year ended June 30, 2023.

In our opinion, the Housing Successor complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on the Housing Successor for the year ended June 30, 2023.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Housing Successor and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Financial Statements Management is responsible for compliance with the California Health and Safety Code sections applicable to California Housing Successor Agencies.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance on the Housing Successor’s compliance with the California Health and Safety Code sections applicable to California Housing Successor agencies. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

Attachment 5
City of Coronado Page 532
In performing an audit in accordance with GAAS, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Housing Successor’s internal control.

Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Housing Successor’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Report on Internal Control over Compliance
Management of the Housing Successor is responsible for establishing and maintaining effective internal control over compliance with the type of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Housing Successor’s internal control over compliance with the type of requirements that could have a direct and material effect on the Housing Successor as a basis for designing the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on compliance and to test and report on internal controls over compliance. Accordingly, we do not express an opinion on the effectiveness of the Housing Successor’s internal control over compliance.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance of California Health and Safety Code sections applicable to California Housing Successor Agencies on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that a material noncompliance with a type of compliance requirement of California Health and Safety Code sections applicable to California Housing Successor Agencies will not be prevented or detected and corrected on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies.

Attachment 5
City of Coronado Page 533
Irvine, California
July 5, 2024
Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified.

Purpose of this Report
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of California Health and Safety code sections applicable to California Housing Successor Agencies. Accordingly, this communication is not suitable for any other purpose.

Report on Excess/Surplus Calculation
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Coronado, California, as of and for the year ended June 30, 2023, and we have issued our report thereon dated July 5, 2024, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements as a whole. The accompanying report on excess/surplus calculation is presented for the purposes of additional analysis only and is not required part of the financial statements.

Such information is the responsibility of management and was derived from the financial statements. The report on excess/surplus calculation 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.

Attachment 5
City of Coronado Page 534

CITY OF CORONADO HOUSING SUCCESSOR

COMPUTATION OF HOUSING SUCCESSOR
EXCESS/SURPLUS (HSC 34176.1)
Opening Fund Balance $ 817,615
Less Unavailable Amounts:
$ (6,424,269)
(6,424,269)
(5,606,654)
Aggregate amount deposited for last four years:
2022-2023 $ 86,394
2021-2022 29,676
2020-2021 48,191
2019-2020 112,068
Total $ 276,329
Base Limitation $ 1,000,000
$ 1,000,000
Computed Excess/Surplus None
Low and Moderate
Housing Funds
June 30, 2023
Greater amount
Available Housing Successor Funds
Loans Receivable
Limitation (greater of $1,000,000 or four years deposits) Attachment 5
City of Coronado Page 535

CITY COUNCIL STAFF REPORT
July 16, 2024 5l

QUARTERLY CITY PROJECTS PROGRESS REPORT
RECOMMENDATION:

Receive report and provide direction, as needed.

BACKGROUND:

The intent of the Quarterly Projects Progress report is to provide to the City Council and the public a regular update on the progress of citywide projects. This helps to gauge performance and serves as a tracking tool. Additionally, it advances the discussion of workload capacity and prioritization, along with identifying consequences of unexpected disruption or challenges. City Council last considered the Quarterly Tasks and Project Progress report at the April 14, 2024 meeting.

ANALYSIS:

The City of Coronado is actively advancing approximately 70 projects and initiatives. These initiatives comprise a de facto work plan approved by the City Council in an incremental fashion over time. These activities represent items of additional focus, new activities, or projects of community significance. Many of these activities have a multi-year planning and/or implementation timeline. Projects are typically above and beyond the normal duties and expectations of staffing and department performance.

Staff has made changes to the overall quarterly report format in an effort to simplify reporting and to make the document more readily accessible. The report is now modeled on the Capital Improvement Projects prioritization list which was approved by City Council in June 2024 as part of the Fiscal Year 2024/25 Capital Improvement Program budget. In addition to prioritization of projects, it also contains a summary of projects, including project descriptions, projected completion date, project phase and current status.

Staff requests City Council review the Quarterly Projects Progress Report and provide direction, as needed.

FISCAL IMPACT:

None. Identifying and tracking the tasks is an important element to ensure that projects are delivered efficiently in conformance to the expectations of the City’s Budget and Financial Plan.

ALTERNATIVE:

None.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

Not Applicable.

PUBLIC NOTICE:

No notice required.

ATTACHMENTS:

City of Coronado Page 536

1. Quarterly Project Progress Report
Submitted By: City Manager's Office / Tony Winney
City of Coronado Page 537
Lead Department Project Title Project Description Sequencing Estimated Project Cost Estimated Phase Completion Phase Status as of 6/30/2024
Public Services &
Engineering
Aquatic Center Plaster/Underwater Grouting & Aquatic
Center Deck Rehabilitation Design
Refurbish Aquatic Center deck and pool plaster, bulkhead, repair rebar and gutters, grout, and ceramic tiles. Evaluate current condition of pool mechanical equipment.
1 $4,638,049 Q3 2024 Construction Construction is on track and scheduled to open August 2024.

Public Services &
Engineering Pump Station Upgrades (Point) Replace wet well, upgrade pumps and controls. 1 $1,387,000 Q2 2025 Construction Construction contract awarded and pre-construction meeting was held. Anticipated start of construction is October 2024.

Public Services &
Engineering Feast & Fareway Outdoor Heaters Purchase and installation of outdoor heaters for patio dining at Feast & Fareway. 1 $50,000 Q3 2024 Bid Bid results submitted July 3, 2024. Lead time for electrical panel is 12 weeks from award.

Public Services &
Engineering Lawn Bowling Green Refurbishment and Fungus Mitigation Replace the Lawn Bowling Green at the John D. Spreckels Center. Address fungus and drainage problems concurrently. 1 $1,308,000 Q2 2025 Bid Due to January 22, 2024 storm, the Lawn Bowling Green
surface was damaged and approved by insurance for repair.

Project scope only includes bowling green surface
replacement. Staff is updating bid documents in preparation of release.

Public Services &
Engineering
Seaport Manhole Rehabilitation & Transbay Sewer Main
(Backup Line) Inspection
Rehabilitate one manhole and abandon another, both located in Seaport Village. 1 $550,000 Q4 2024 Permitting Finalizing specifications and coordinating permit requirements with Port of San Diego.

City Manager's Office Cays Park Master Plan Create a Master Plan in partnership with the community to help guide the future redevelopment of Cays Park. 1 $418,742 Q2 2024 Master Plan On May 21, 2024 City Council approved the Cays Park Master Plan. The master planning phase is now complete and will move to phasing and design. Staff will also explore funding opportunities for the park, including grant opportunities and timing to coordinate with design of the Cays Fire Station.

Public Services &
Engineering Downtown Beautification Project (NEW)
Install new street furnishings along Orange Avenue from First St. to R.H. Dana, and conduct an intensive upgrade of the 800 block of Orange Avenue.
1 $3,400,000 Q4 2025 Planning
Scoping meetings with design consultant underway. Field survey and utility analysis will begin in August, with contract for design and survying anticipated for upcoming City Council meeting.

Public Services &
Engineering Wastewater Main Replacement Program FY 2016-17 Replace sewer mains and manholes and coordinate with Street, Curb & Gutter project to overlay Second St. and resurface the concrete alleys. 1 $4,461,278 Q2 2025 Bid Bid release with award of construction contract estimated in July 2024.

Public Services &
Engineering
Street, Curb & Gutter COR07 RTIP (Second Street) FY
2021-22
Once the sewer mains are replaced, full mill and overlay of Second Street from Alameda Blvd. to D Ave. 1 $600,000 Q2 2025 Bid This project has been merged with the Wastewater Main
Replacement Project FY 16/17. Award of contract estimated in July 2024.

Public Services &
Engineering
Shores Median Design SR-75 from Avenida Del Sol to
Avenida Lunar New landscaped median along Silver Strand fronting the Shores. 1 $1,440,000 Q4 2025 Design Addressing final design comments from Caltrans and working to resubmit in July.

Public Services &
Engineering Seawall Stabilization & Repair Public Right of Way Complete designs and permitting to repair seawall along City maintained bulkheads within the Coronado Cays. 1 $600,000 Q3 2026 Permitting Point repairs underway at Admiralty Cross and Grand Caribe will be completed by September 2024. Additional bulkhead locations have been identified for repair. Assessing permits required for additional locations, including from Army Corps of Engineers. Staff requesting proposals from consultant for design/permitting.

Public Services &
Engineering Pump Station Rehabilitation (Parker) Complete replacement of existing facility and create green space at existing site. 1 $32,500,000 Q2 2025 Construction Project is 50% complete with expected completion in Spring 2025.

Capital Improvement Projects
Citywide Project List for Fiscal Year 2024-25
Attachment 1
City of Coronado Page 538
Public Services &
Engineering John D. Spreckels Center (JDSC) Emergency Generator Install an emergency generator at the John D. Spreckels Center. 1 $650,000 Q3 2025 Design Architectural and structural drawings to be coordinated and resubmitted to the Building Department for approval in Q2 2024.

Public Services &
Engineering First Street Storm Water Pump Station Flood Relief Design and construction of a storm water pump station and tide gate to alleviate the flooding on First Street in the vicinity of A Avenue during rain events at high tides.
2 $1,087,500 Q2 2026 Design
Staff is working on design and permitting requirements with Port and Ferry Landing tenant. Lead time for equipment is 40 weeks from award of contract. Due to Port tenant, construction limited to October through February timeframe. Construction start targeted for October of 2025.

Public Services &
Engineering Storm Drain Repairs at Various Locations (NEW) As-needed storm drain repairs at various locations including installing a storm drain pipe on Acacia Way. 2 $400,000 Q4 2024 Design Staff kicking off design along Acacia Way and at Ninth/E Ave.

Public Services &
Engineering Wastewater Main Priority 2023-24
Inspection and assessment of existing sewer mains and manholes citywide. Design and repair/lining/replacement of mains and manholes as needed.
2 $2,300,000 Q4 2024 Planning
Consultant/contractor have inspected and assessed over 14 miles of sewer mains and associated manholes. Reviewing results prior to determining scope of work.

Public Services &
Engineering Adella/Ynez Undergrounding Underground overhead utilities in area. 2 $2,250,000 Q3 2025 Design City staff has requested SDGE redesign proposed design to incorporate new Cal American waterline. Waiting for SDGE confirmation.

Public Services &
Engineering Animal Care Facility Planning Assess and plan for desired upgrades at the City’s Animal Care Facility. 2 $100,000 Q1 2025 Planning The City is conducting an operational analysis of PAWS to help determine ultimate design needs for renovation of the Animal Care Facility in partnership with PAWS.

Public Services &
Engineering Fire Station 37 Dorm Renovation (NEW) Renovate the living quarters at FS 37. 3 $100,000 - - Project kickoff will commence based on staff availability.

Public Services &
Engineering Police Dept. Women's Locker Room Expansion (NEW) Renovate and expand the women's locker room in the Police Dept. 3 $350,000 - - Project kickoff will commence based on staff availability.

Public Services &
Engineering Library HVAC Replacement (NEW) Replace the HVAC system on the main library building. Does not include the Winn Room. 3 $2,000,000 - - Project kickoff will commence based on staff availability.

Public Services &
Engineering
Police HVAC Chiller and Hot Water Tank Replacement
(NEW)
Replace the existing chiller and hot water tank at the Police Department. 3 $350,000 - - Project kickoff will commence based on staff availability.

Public Services &
Engineering
Roof Replacement or Repairs at Various City Facilities
(NEW)
Initiate the design to replace roofs at the following facilities: Police Department, Boathouse Restaurant and City Hall. 3 $1,500,000 - - Project kickoff will commence based on staff availability.

Public Services &
Engineering Wastewater Emergency Risk Evaluation
Evaluate response readiness to emergency scenarios such as extended power loss, pump and collection system failures, natural disasters, etc.
3 $30,000 - - Project kickoff will commence based on staff availability.

Recreation and Golf Golf Course Irrigation Replacement (NEW) Initiate the process to redesign and replace the golf course irrigation system. 3 $9,000,000 Q2 2027 Design Conceptual design of potential turf reduction being completed.

Drafting of RFP for irrigation design to commence Q1 2025.

Public Services &
Engineering Cays Pump Station Improvements Addition of flow meters and pump station bypass connections at the Cays Pump Station. 3 $500,000 Q3 2024 Planning Detailed scope of work being developed; field meeting with anticipated designer to be scheduled for July.

Public Services &
Engineering Library Roof Replacement (NEW) Initiate the design to replace the roof on the main portion of the library.

Does not include the Winn Room. 3 $1,750,000 - - Project kickoff will commence based on staff availability.

Public Services &
Engineering Police Station Generator Installation Replace police station emergency generator, relocate exhaust, and provide power for portable backup generator. 3 $665,000 Q4 2024 Design Comments to 75% design report provided to Electrical Engineer. Awaiting 90% report.

Public Services &
Engineering Coronado Gateway Improvements to the Toll Plaza and surrounding right-of-way areas. 3 $4,000,000 Q3 2024 Planning Will present project to Council and request direction on certain elements in summer 2024.

Attachment 1
City of Coronado Page 539
Public Services &
Engineering
Street, Curb & Gutter COR07 RTIP (Cays) FY 2018-19 &
FY 2019-20
Construct asphalt overlay and replace damaged curb/gutter sections as needed. 3 $1,250,000 Q3 2025 Planning Project on hold as staff completes Pavement Management Plan and assessment of sewer mains/manholes in the area.

Public Services &
Engineering Bandel Pump Station Improvements (Underground) Rehabilitate/replace underground elements of the existing pump station (valves, pipes, supports, hatches), design for future above ground controls.
3 $400,000 Q3 2024 Planning Currently working on hatch repairs required by SDG&E; once hatch repairs are advertised (Q3 2024), staff will begin design.

Public Services &
Engineering Winn Room Renovation Develop remodel options of the Winn Room. 3 $300,000 Q2 2024 Planning The results of the Spring Winn Room Subcommittee meetings will be presented to City Council in Summer 2024. After Council direction on selected remodel option, staff will iniate design work.

Public Services &
Engineering Satellite Water Recycling and Turf Care Facilities Project to generate sufficient reclaimed water to irrigate the Golf Course, Orange Avenue medians, and Spreckels and Tidelands parks. 3 $1,172,000 Q2 2025 Planning Staff is monitoring the recycled water use study being
conducted by Cal American Water. Expect study to be
completed July of 2025.

Public Services &
Engineering
Street Preventative Maintenance Annual Program - FY 24 & FY 25
Construct digouts, seal cracks, slurry seal pavement and restripe road annually on a rotating basis. 4 $1,200,000 Q3 2024 Bid Advertising FY 2024 project in July with anticipated construction at end of 2024.

Public Services &
Engineering Traffic Signal and Control Device Upgrades (NEW) Upgrades and repairs to traffic signals and related devices at various locations. 4 $500,000 Q4 2024 Design Staff working to replace all pedestrian push buttons at First, Pomona, and Rendova signalized intersections. Currently evaluating battery backup system with goal to replace 6 other locations by end of 2024. Researching the replacement of signal indications and installation of yellow back plates at all City maintained signalized intersections.

Public Services &
Engineering Five Points Drainage Preliminary Engineering Preliminary engineering for solutions to alleviate the flooding at the fiveway intersection of Glorietta Blvd., Pomona Ave., and Tenth St. 4 $350,000 Q3 2024 Planning Conceptual analysis under review by City.

Public Services &
Engineering First Street Undergrounding Design of undergrounding of overhead utilities along First Street between D Avenue and Alameda Boulevard. 4 $100,000 Q3 2024 Design SDGE has communicated that the 60% design will be
completed by end of September 2024. Funding dependent on resident petition approval.

Public Services &
Engineering Alley Replacement/Repairs (NEW) As-needed major and minor upgrades and repairs of city alleys at various locations. 4 $500,000 - - Project kickoff will commence based on staff availability.

Public Services &
Engineering HVAC Replacement or Repairs at Various Facilities (NEW) Repair or replace HVAC equipment at the following facilities: FS 36, FS 37, Golf, Glorietta Bay Marina, Public Services, and Boathouse and Clubroom.
4 $600,000 - - Project kickoff will commence based on staff availability.

Public Services &
Engineering Pump Station Rehabilitation Various Inspection/assessment and design repair of existing pump stations in the city. 4 $500,000 - - Project kickoff will commence based on staff availability.

Public Services &
Engineering ADA Accessibility Upgrades at City Facilities Install nine accessible push button doors in the restrooms at JDSC and Lawn Bowling Green, the Library, and the Rec Center. 4 $87,651 - - Project kickoff will commence based on staff availability.

Public Services &
Engineering Silver Strand Undergrounding Complete the design and permitting for undergrounding of overhead utilities along the Silver Strand. 4 $200,000 Q3 2024 Permitting SDGE has completed the design and staff is coordinating required permits/approvals needed for construction. Staff working with project manager and consultant to develop
phased construction scope.

Public Services &
Engineering Police Station Perimeter & Entrance Security Security enhancements to the entrance and perimeter of the Police Services Facility at 700 Orange Avenue. 4 $416,440 - - Project kickoff will commence based on staff availability.

Attachment 1
City of Coronado Page 540
Public Services &
Engineering Accessible Playground Planning Assess and develop a plan for the construction/rehabilitation of City playgrounds to improve accessibility. 4 $600,000 - - Project kickoff will commence based on staff availability.

Public Services &
Engineering
Neighborhood Lighting and Street Improvements Along
Third/Fourth Streets
Install improvements, including decorative light standards, landscaping and street furnishings along Third/Fourth Streets. 5 $550,000 - - Staff will be working with Caltrans to determine which project elements are acceptable to Caltrans.

Public Services &
Engineering Flow Meter Installation Project Install and connect flow meters to remote monitoring systems at select wastewater/storm drain pump stations. 5 $100,000 - - Project kickoff will commence based on staff availability.

Public Services &
Engineering Street, Curb & Gutter COR07 RTIP Construct asphalt overlay and replace damaged curb/gutter sections as needed on Third Street from Glorietta to Pomona. 5 $717,992 Q2 2025 Design Project was previously delayed to allow hospital construction to be completed; however, design is now underway. Staff will need to coordinate asphalt overlay with Cal-Am water line replacement.

Public Services &
Engineering
Pomona Avenue Reconstruction and Underground Utility
Design Reconstruct Pomona Avenue and underground utilities. 5 $600,000 - - Project kickoff will commence based on staff availability. $85,543,937
Attachment 1
City of Coronado Page 541
Lead
Department Project Title Project Description Sequencing Est. Completion Status Community
Development Housing Element Update (HEU) Complete review and certification of the City's Housing Element with California Department of Housing and Economic Development (HCD). 1 Q2 2024 Complete. The Housing Element has been certified by HCD and the City is in full compliance. Housing Element submitted to the Coastal Commission for review and certification.

Public Services
and Engineering League of Wives Installation of new League of Wives sculpture in Star Park and conduct ribbon cutting ceremony. 1 Q3 2024 Dedication occurred June 21, 2024. Finish work to resume on July 8, including concrete trim with bronze letters, brick installation, and uplighting with project completion by end of August.

Administrative
Services/PS&E
January 2024 Storm Remediation and
Restoration
Remediation and restoration of damages sustained by the various City facilities and properties during the January 22, 2024 storm. 1 Q3 2024 Remediation work has been completed and the restoration work continues at various facilities.

Public Services
and Engineering Library Facility Enhancement Grant
Phase 1: Convert Computer Lab to two Study Rooms.

Phase 2: Install fire rated doors and windows to the Historic Spreckels Reading Room.
1 Q4 2024 Phase 1 construction is in progress with scheduled completion end of July.

Phase 2 design is in progress.

City Manager's
Office Cross-Border Pollution Advocacy Advocate for solutions to chronic water pollution problems stemming from the Tijuana River Valley. 1 Q4 2024 Advocacy has resulted in Congress allocating an additional $200 million for the International Border Water Commission and treatment plant improvements in March 2024. Advocacy continues for additional funding for IBWC plant. Mexico is scheduled to complete repairs to the Punta de Bandera treatment plant by September 2024.

Public Services
and Engineering Traffic Signal Assessment Conduct an assessment of the City/Caltrans traffic signal operation network. 2 Q3 2024 Staff targeting end of July completion with report to City Council in August 2024.

Fire Services Ambulance Transport Fee Study Conduct a comprehensive ambulance transport fee study to ensure the City's cost recovery is in alignment with the cost to provide service. 2 Q3 2024 The study has been completed and will be considered by City Council in the Fall 2024.

Fire Services Basic Life Support (BLS) Ambulance Transport Pilot
Conduct a pilot response plan to more efficiently respond to low-acuity medical incidents. 2 Q3 2024
A pilot BLS ambulance transport unit was placed into service on June 23, 2024 for a period of 90 days. Goals include reducing the use of Advanced Life Support (ALS) ambulance response, decreasing the demand for mutual aid, and alleviating the impact to local emergency rooms.

City Manager's
Office
E-Bike Public Education Campaign and
Enforcement
Develop and launch a public safety campaign on the proper use of e-bikes.

Implement youth skills training and enhance enforcement. 2 Q3 2024 Public safety campaign continues with reprint and distribution of rider education materials to e-bike rental shops and other locations, and Saturday school diversion program with CUSD. The City is also supporting state legislation that would prohibit riders under 12 years old.

Long Term Planning Projects
Attachment 1
City of Coronado Page 542
Recreation and
Golf Facility Use and Fees Study Complete a comprehensive fee study and develop a cost recovery model and policy plan for Recreation and Golf Services. 2 Q1 2025 Golf Fee adjustments were adopted by City Council in November 2023.

Staff continues to work with consultant to facilitate community workshops for Recreation fee adjustments after cost of service analysis.

Consideration of recreation fee adjustments and policy updates is slated for City Council in Fall 2024.

Administrative
Services
Integrated Citywide Financial Management
System
Replace current financial system with Enterprise Resource Planning (ERP) system. 2 Q1 2025 Staff is working on system configuration and build out as part of the implementation process with a scheduled go-live in January 2025.

Fire Services Community Risk Assessment/ Fire Station
Design
Conduct a comprehensive Community Risk Assessment (CRA) is a process for assessing hazards, vulnerabilities, and risks to our City. The CRA will enable staff to identify and prioritize strategic investment of resources to reduce potential impacts to the environment, property and infrastructure. 2 Q2 2025 Funding was approved in the Fiscal Year 2024/25 budget and the consultant search will begin in July 2024.

City Manager's
Office Beach Water Quality Testing Methodology County of San Diego introduced a new water quality testing procedure in May 2022 which has resulted in more frequent beach closures. 2 Q1 2026 Staff met with the County of San Diego to review discrepancies between the new ddPCR test and traditional Enterolert test in June 2024. Further meetings will be scheduled to explore water quality testing protocols.

City Manager's
Office PAWS Animal Control Management Agreement Update current management agreement with PAWS. 3 Q2 2024 Complete. Management agreement approved by the City Council on May 7, 2024. Operational assessment taking place analyzing facility usage to assist scoping of future capital improvements, which is a separate CIP project.

Public Services
and Engineering Pavement Management Program (PMP) Conduct an assessment of City streets and alleys for PCI (pavement condition index). 3 Q3 2024 Staff reviewing draft pavement management plan with ratings by street segment, recommendations and financial options/recommendations for street/alley maintenance.

Administrative
Services Classification and Compensation Study
Conduct an analysis of the City’s classification and compensation practices and processes and provide recommendations that align with industry standards and best practices.
3 Q3 2024
Staff and consultant conducted workshops with the identified represented and self-represented groups. The consultant will analyze and draft report of findings and recommendation in Fall 2024.

Administrative
Services Develop Safety and Risk Management Program Develop a Safety and Risk Management Program and establish related supporting policies and procedures. 3 Q4 2024 The draft of the Injury and Illness Prevention Plan has been completed.

Consultant and City staff will schedule meetings with departments and labor groups to provide overview of the Injury Illness Prevention Plan and develop program specific trainings for implementation.

Community
Development Development Impact Fee Study
Conduct a nexus study to evaluate the City's current development impact fees, including recommendations on potential fee changes for City Council consideration.
3 Q4 2024 The study is current in progress. The affordable housing in-lieu fee study will be presented to City Council by late 2024.

Attachment 1
City of Coronado Page 543
Community
Development Historic Context Statement and Survey
Determine the number of potentially historic structures and provide clarity to the public on the qualifications process to designate a home as a Historic Resource.
3 Q4 2024
Staff will present a project update and resident-feedback based tier adjustments to City Council on July 16, 2024. Staff is currently conducting the environmental impact review and will return to City Council in late 2024 with a review of the Historic Context Statement and Survey.

City Clerk's Office Council Document Digitization and Accessibility Digitize additional City Council Minutes, Resolutions and Ordinances and make available on the City's website. 3 Q4 2024 Consultant started the digitization project on June 13. Scanning and control checks are currently underway for designated documents.

Public Services
and Engineering Wastewater Fund Sustainability
Conduct a rate review study to evaluate rate setting methodology, customer classifications and consumption based rates. Study will incorporate anticipated capital expenditures and Metro JPA/Pure Water costs.
3 Q4 2024 Consultant provided fund model for review by staff. Staff has reviewed and will finalize model and rate options by end of 2024.

Public Services
and Engineering Storm Drain Fund Sustainability
Conduct a Storm Drain Sustainability Study to determine long-term funding strategies and best practices for the Storm Drain enterprise fund to remain in compliance with the Clean Water Act.
3 Q4 2024 Staff has retained a consultant and they are currently working on draft report.

Administrative
Services IT Strategic Plan Update the City's IT Strategic and Implementation Plan. 4 Q3 2024 The draft of the IT strategic plan has been received. Staff will finalize the draft and share priority IT projects with the Executive Team for additional feedback.

Administrative
Services
Establish Disaster Recovery and Business
Continuity Plan
Establish a Disaster Recovery and Business Continuity Plan which aligns with the City's Emergency Operations Plan. 4 Q4 2024
The framework and prioritization of the Disaster Recovery and Business Continuity Plan is complete. Staff is documenting the individual steps of various recovery and continuity steps.

Community
Development Traffic Calming Master Plan City Council directed the Mobility Commission to develop a plan including a "tool kit" for implementation at selected locations. 4 Q4 2024 The Mobility Commission continues to work on this project.

City Clerk's Office Records Inventory Management System Development of records management policies and procedures, retention schedule update, file standardization, and training. 4 Q3 2025 Cross department representatives were designated for the City's internal work group with estimated start date late July.

City Manager's
Office COVID-19 Lifeline Business Loan Program Service repayment of the Lifeline Businesses Loans made to Coronado businesses. 4 Q4 2027 Additional outreach to businesses was conducted in the spring 2024, resulting in an increase in the number of businesses in compliance with the program. Outreach is ongoing.

City Manager's
Office
San Diego-Coronado Bridge Physical Suicide
Deterrent Project
Advocate and work with the State of California for effective and compatible suicide deterrent features on the Coronado Bridge. 5 Q4 2029 The Draft Environmental Document has been completed. The CA Transportation Commission allocated $14 million for project design in February 2023. Estimated construction would begin in 2026 and span three years.

Attachment 1
City of Coronado Page 544
City Manager's
Office SR75/282 Relinquishment Process to accept ownership of the principal transportation thoroughfares through the City. 5 Pending This project has been put on hold until further discussions can proceed to garner support from the US Navy.

Attachment 1
City of Coronado Page 545

CITY COUNCIL STAFF REPORT
July 16, 2024 5m

AUTHORIZE THE CITY MANAGER TO AWARD CONTRACTS AND CHANGE ORDERS FOR THE CONSTRUCTION OF THE WASTEWATER MAIN REPLACEMENT FY 16/17 PROJECT AND ASSOCIATED SUPPORT SERVICES IN THE AMOUNT OF $4,461,278, AND ADDITIONAL APPROPRIATION IN THE AMOUNT OF $3,230,591 FROM THE WASTEWATER FUND
RECOMMENDATION:

Authorize the City Manager to award contracts to Palm Engineering Construction Company, Inc. for an amount of $3,694,078 for the construction of the Wastewater Main Replacement FY 16/17 (Contract No. 24-CO-ES-788) and Harris & Associates in an amount not-to-exceed $367,800 for construction management support services; approve a project contingency of $369,400; amend the FY 2024/25 Budget and appropriate an additional $3,230,591 from the Wastewater Fund (61071000-97880-17020); and, authorize the City Manager to execute change orders within the project budget.

BACKGROUND:

The sewer main replacement program corrects deficiencies in the City’s sewer system by inspecting, assessing, and replacing undersized and deteriorated pipelines and manholes. The Wastewater Main Replacement FY 16/17 project will replace over 5,000 linear feet of sewer mains along First and Second Streets (including associated manholes), approximately 285 linear feet of the Cays sewer force main immediately upstream of the Glorietta Pump Station and complete a 2” asphalt overlay on Second Street from Alameda Boulevard to D Street. Plans and specifications are available for review in the Public Services and Engineering and Department.

ANALYSIS:

The project was originally advertised on February 20, 2024, with bids due on March 20, 2024.

Unfortunately, no bids were received. Attempts to direct negotiate with a prospective bidder in accordance with Public Contracts Code requirements were unsuccessful. The project was readvertised on May 22, 2024; bids were publicly received and opened on-line through Planet Bids on June 19, 2024, with the following results:

BIDDER BID AMOUNT
Palm Engineering Construction Co. Inc. $3,694,077.50
Creative Home Corporation $3,986,240.00
Filanc $8,325,556.50
Staff reviewed the bid package, insurance, and bonding for Palm Engineering Construction Company, Inc. In accordance with the Standard Specifications for Public Works Construction, Palm Engineering Construction Company, Inc. is the lowest responsible and responsive bidder. Public contracting laws require the City to award the contract to the lowest responsible and responsive bidder, in this case, Palm Engineering Construction Company, Inc.

Due to the complexity of the project and limitations on staff availability it is recommended that a work order be issued to Harris & Associates, one of the City’s on-call construction management City of Coronado Page 546
consultants, to provide day-to-day construction management and inspection services for the duration of the project. A work order for geotechnical investigation (Ninyo and Moore) is also anticipated to be executed for the project as is typical for this type of project to allow for geotechnical inspection of construction activities and material testing, and response to any geotechnical technical questions from the contractor regarding the project design. This work order and amount is within the City Manager’s authority.

FISCAL IMPACT:

The Capital Improvement Program (CIP) from FY 16/17 appropriated $1,200,00 for design and construction of the project from the Wastewater Fund (61071000-97880-17020). Subsequently, the project was changed to include an asphalt overlay that had been envisioned for the FY 21/22 Street Curb and Gutter project, and the budgets of the two were combined accordingly; this includes $1,050,000 of TransNet funds (21030000-98982-22002). In summary, a total of $2,250,000 has been allocated to the project.

To date, approximately $399,313 has been spent or encumbered for sewer main CCTV inspection, design, construction support from engineer of record, and miscellaneous expenses, leaving $1,850,687 available for construction.

TransNet funds can only be used for transportation related activities which limits the usage of said funds on this project to the asphalt overlay component of the project. Based on bid line items of the apparent low bidder, staff has estimated that the overlay portion of work is approximately $430,300 dollars. Of the original budgeted $1,050,000 of TransNet funds, none has been spent to date. With an anticipated maximum amount of $460,000 eligible to be paid for using TransNet funds, the remaining TransNet budget allocation of $619,700 will likely be returned to the City’s TransNet fund balance at the end of the project and its budget impact offset through an additional appropriation of Wastewater (or other) funds.

Considering all of the above, an additional appropriation of $3,230,591 will be required to complete the Wastewater Main Replacement FY 16/17 project.

It is recommended that the project be funded as follows:

Original Project Budget
Capital Improvement Program Project Budget $2,250,000
(Less) Sewer Main Inspections (CCTV) (174,437)
(Less) Civil Design & Cons. Support Fees (224,731)
(Less) Additional Expenses (145)
Total Remaining Project Budget $1,850,687
Construction
Construction Contract Award $3,694,078
Construction Management/Inspection Services $367,800
Geotechnical Inspection $30,000
Project Contingency (~10%) $369,400
Total Construction Cost Estimate $4,461,278
Additional Appropriation by Funding Source
Total Construction Cost Estimate $4,461,278
(Less) Total Remaining Wastewater Funds (800,687)
(Less) Total Eligible TransNet Funds (460,000)
Additional Wastewater Appropriation
Required $3,200,591
City of Coronado Page 547
ALTERNATIVE:

The City Council may elect to reject all bids. The City Council may also elect to appropriate additional funds to the project from an alternative funding source.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

Categorically Exempt per California Environmental Quality Act (CEQA) Guideline; Class 1, Existing Facilities.

PUBLIC NOTICE:

No notice required.

ATTACHMENTS:

1. Palm Engineering Construction Company Inc. Contract

2. Harris & Associates Work Order
Submitted By: Public Services and Engineering Department / Jessie Powell City of Coronado Page 548
Contract No. 18-PS-CO-788 1
ACA Approved Template (10-11-21) SD #4821-4737-7394 v1r

CONTRACT
between

THE CITY OF CORONADO
as City
and
PALM ENGINEERING CONSTRUCTION COMPANY, INC.
dba PALM ENGINEERING
as Contractor
for construction of the
WASTEWATER MAIN REPLACEMENT PROGRAM FY16-17
CONTRACT NO. 18-PS-CO-788

CITY OF CORONADO, CALIFORNIA
Attachment 1
City of Coronado Page 549
Contract No. 18-PS-CO-788 2
ACA Approved Template (10-11-21) SD #4821-4737-7394 v1r THIS CONTRACT is made as of July 17, 2024, by and between the City and the Contractor.

The City and the Contractor hereby agree as follows:

ARTICLE 1 – BASIC INFORMATION

1.1 City: City of Coronado
1825 Strand Way
Coronado, CA 92118

1.2 Project Name: Wastewater Main Replacement Program FY16-17

1.3 City’s Address for Notices: Jim Newton, City Engineer City of Coronado
Public Services & Engineering Department
1825 Strand Way
Coronado, California 92118-3005

1.4 Contractor: Palm Engineering Construction Company, Inc. dba Palm Engineering

1.5 Contractor’s Address for Notices: Palm Engineering Construction Company, Inc. 7330 Opportunity Road, Suite A
San Diego, CA 92111
Attention: Rasoul Shahbazi

1.6 Project Location: First Street, Second Street & Strand Way Coronado, CA 92118

1.7 City's Contract Officer: Jim Newton, City Engineer
Public Services & Engineering Department

1.8 Civil Engineer: Nasland
4740 Ruffner Street
San Diego, CA 92111
(858) 292-7770

1.10 City Representative: Jessie Powell, Associate Engineer Public Services & Engineering Department
(619) 522-7357
Attachment 1
City of Coronado Page 550
Contract No. 18-PS-CO-788 3
ACA Approved Template (10-11-21) SD #4821-4737-7394 v1r ARTICLE 2 – WORK

2.1 Contractor shall provide all labor, materials, equipment, tools, and services required by and shall perform all Work described in the Contract Documents. Contractor agrees to do additional Work arising from changes ordered by the City pursuant to Section 3 of the Greenbook.

ARTICLE 3 – CONTRACT DOCUMENTS

3.1 The Contract Documents consist of this executed Contract; Pre-Bid Information; Bidding Requirements; Bidder’s Proposal; Notice of Award; Notice to Proceed; General Conditions; Supplementary General Conditions; Exhibits; Specifications; Standard Specifications for Public Works Construction (Greenbook), 2018 Edition; Caltrans Standard Specifications, 2015 Edition; all Drawings shown on the List of Drawings; all Bonds required; the Addenda as shown below; and Change Orders.

3.2 The following addenda are incorporated into the Contract Documents:

No. Date of Issue:
1 6/10/2024

3.3 The Contract Documents may not be modified orally or in any manner other than in writing in accordance with Section 3 of the Greenbook. All such modifications shall be incorporated in the Contract Documents.

3.4 Precedence of Contract Documents:

3.4.1 In the event of a conflict between component parts of the Contract Documents, the document highest in precedence shall control. The precedence shall be:
.1 Permits issued by jurisdictional regulatory agencies; .2 Change Orders and supplemental agreements, whichever occurs last; .3 Contract/Agreement;
.4 Bid/Proposal;
.5 Special Provisions and Addenda;
.6 Specifications (Technical Provisions);
.7 Project Plans;
Attachment 1
City of Coronado Page 551
Contract No. 18-PS-CO-788 4
ACA Approved Template (10-11-21) SD #4821-4737-7394 v1r .8 Standard Drawings, Details, and Specifications as referenced in the Plans and Specifications;
.9 Reference Specifications: Greenbook, 2018 Edition, and Caltrans Standard Specifications, 2015 Edition; and
.10 Notice of Award, Notice to Proceed, Pre-Bid Information, Bidding Requirements, Exhibits, Bonds and Bidder’s Proposal.

3.5 The Contract Documents comprise the entire contract between the City and Contractor concerning the Work to be performed for this Project. All prior negotiations or stipulations regarding this matter which preceded or accompanied the executing of these Contract Documents are conclusively deemed to be superseded by these Contract Documents. The Contract Documents are complementary; what is called for in one is binding as if called for by all. To the extent that portions of the Contract Documents are not attached to this Agreement, they shall be deemed incorporated herein by reference.

3.6 The interpretation, validity, and enforcement of the Contract Documents shall be governed by and construed under the laws of the State of California. Any suit, claim, or legal proceeding of any kind related to these Contract Documents shall be filed and heard in a court of competent jurisdiction in the County of San Diego.

ARTICLE 4 – CONTRACT SUM

4.1 City shall pay to Contractor, for the performance of the Work, the Contract Sum pursuant to General Conditions Article 9, subject to adjustment for unit price items, and as modified pursuant to the terms of the Contract Documents.

4.2 Contract Sum, including the Additives accepted by the City, is established as follows:

Contract Sum $3,694,078

4.3 The Contract Sum is: Three million, six hundred ninety-four thousand, seventy-eight dollars.

ARTICLE 5 – CONTRACT TIME

5.1 Contractor shall commence the Work on the date specified in the Notice to Proceed. The Work shall be fully completed within One hundred and forty working days (“Contract Time”) from the date of commencement specified in the Notice to Proceed, as modified pursuant to the terms of the Contract Document. Time is of the essence in the performance of all obligations under these Contract Documents, and all timing requirements shall be strictly adhered to unless otherwise modified by the City.

Attachment 1
City of Coronado Page 552
Contract No. 18-PS-CO-788 5
ACA Approved Template (10-11-21) SD #4821-4737-7394 v1r ARTICLE 6 – LIQUIDATED DAMAGES

6.1 If Contractor fails to complete an area’s Work within the Contract Time as described in Article 5, Contractor shall pay to the City, as liquidated damages and not as a penalty, the sum of one thousand five hundred dollars ($1,500) for each calendar day after the expiration of the Contract Time per area that the Work remains incomplete. The City and Contractor agree that in the event the Work is not completed within the Contract Time, the City’s damages would be extremely difficult or impracticable to determine and therefore the City and Contractor agree that the amount stated herein is a reasonable estimate of the amount of such damages. The City may deduct any liquidated damages owed to the City, as determined by the City, from any payments otherwise payable to Contractor under this Contract. Nothing contained herein shall limit the City’s rights or remedies against Contractor for any default other than failure to complete the Work within the Contract Time. This provision for liquidated damages shall not be applicable nor act as a limitation upon the City if Contractor abandons the Work. In such event, Contractor shall be liable to the City for all losses incurred.

ARTICLE 7 – INDEMNIFICATION

7.1 In addition to any other obligations contained herein, Contractor shall defend, indemnify, and save harmless the City and its officials, officers, agents, consultants, employees, and volunteers, and each of them, (“City Indemnitees”) from and against any and all liability, claims, judgments, demands, causes of action, damages, costs, expenses, property damage, contract disputes, penalties, losses or liability, in law or in equity, of every kind and nature whatsoever, including but not limited to injuries or damages to persons or property arising directly or indirectly out of the conduct of the Contractor or its employees, agents, subcontractors, or others in connection with the execution of the Work or failure to executed the Work covered by these Contract Documents, except only for those claims or litigation arising from the established sole willful misconduct or active negligence of any City Indemnitee. Contractor’s indemnification shall include all claims for damages arising out of any infringement of patent rights or copyrights incidental to the use in the performance of the Work or resulting from the incorporation in the Work of any invention, design, process, product, or device not specified in the Contract Documents. Contractor’s indemnification shall include any and all costs, expenses, attorneys’ fees and liability incurred by the City Indemnitees in enforcing the provisions of this section, and in defending against such claims, whether the same proceed to judgment or not. Contractor shall reimburse City for any expenditures, including reasonable attorneys’ fees, City may make by reason of such matters, and Contractor at its own expense shall, upon written request by the City, defend any such suit or action brought against the City Idemnitees.

ARTICLE 8 – MISCELLANEOUS PROVISIONS

8.1 Successors and Assigns

8.1.1 The City and Contractor respectively bind themselves and their successors, permitted assigns, and legal representatives to the other party and to the successors, permitted assigns, Attachment 1
City of Coronado Page 553
Contract No. 18-PS-CO-788 6
ACA Approved Template (10-11-21) SD #4821-4737-7394 v1r and legal representatives of such other party in respect to covenants, agreements and obligations contained in the Contract Documents. This Contract and any portion thereof shall not be assigned or transferred, nor shall any of the Contractor’s duties be delegated, without the written consent of the City. Any attempt to assign or delegate this Contract without the written consent of the City shall be void and of no force or effect. A consent by the City to one assignment shall not be deemed to be a consent to any subsequent assignment.

8.2 Survival

8.2.1 The provisions of the Contract, which by their nature survive termination or final completion of the Contract, including all warranties, indemnities, payment obligations, and the City’s right to audit Contractor’s books and records, shall remain in full force and effect after final completion or any termination of the Contract.

8.3 Rights and Remedies

8.3.1 All the City’s rights and remedies under the Contract Documents shall be cumulative and in addition to and not in limitation of all other rights and remedies of the City under the Contract Documents or otherwise available at law or in equity.

8.3.2 No term or provision hereof shall be deemed waived and no default or breach excused, unless such waiver or consent shall be in writing and signed by the party claimed to have waived or consented to such breach. The consent by any party to or waiver of a breach or default by the other shall not constitute a consent to, waiver of, or excuse for any other different or subsequent breach or default.

8.3.3 No provision contained in the Contract Documents shall create or give to third parties any claim or right of action against the City, the City Representative, or Contractor.

8.4 Compliance with Law

8.4.1 The Contractor and its subcontracts are required to comply with all applicable local, state, and federal laws, rules, regulations, orders, policies, protocols and guidance, including , but not limited to, obtaining and maintaining a City Business Certificate during the duration of this Contract and complying with COVID-19 sanitation protocols, health orders and guidance, whether or not said laws are expressly stated or referred to herein or subsequently enacted or amended.

8.5 The City’s Right to Audit

8.5.1 Contractor shall keep records of the direct reimbursable expenses pertaining to the Work and the records of all accounts between the Contractor and subcontractors. Contractor shall keep such records on a generally recognized accounting basis. At any time during normal business hours, and as often as City may deem necessary, the Contractor shall make available to he City and entities and agencies designated by the City for examination, Attachment 1
City of Coronado Page 554
Contract No. 18-PS-CO-788 7
ACA Approved Template (10-11-21) SD #4821-4737-7394 v1r reproduction ad audit all of Contractor's books, records, contracts, correspondence, instructions, drawings, receipts, vouchers, purchase orders, and memoranda relating to the Work. Contractor shall preserve all such records for a period of at least four (4) years after final completion or after termination or final payment, whichever is later, and shall provide copies of same at City’s request.

8.6 Notices

8.6.1 All notices, demands, requests, consents, or other communications that this Contract contemplates or authorizes, or requires or permits either party to give to the other, shall be in writing and shall be personally delivered or mailed to the respective party at the addresses set forth in Article 1 of this Agreement. Either party may change its address by notice to the other party as provided herein.

8.6.2 Communications shall be deemed to have been given and received on the first to occur of (1) actual receipt at the offices of the party to whom the communication is to be sent, as designated above; or (2) three (3) working days following the deposit in the United States Mail of registered or certified mail, postage pre-paid, return receipt requested, addressed to the offices of the party to whom the communication is to be sent, as designated above.

8.7 Contract Officer. The City Engineer shall act as the City’s Contract Officer for this Contract. The City’s designated Contract Officer has the authority to direct the Contractor, approve actions, request changes, and approve change orders within her/his authority. Any obligation of the City under this Contract shall be the responsibility of the Contract Officer.

Excepting the provisions pertaining to dispute resolution, no other person shall have any authority under this Contract unless specifically delegated in writing.

8.8 Governing Law. This Contract and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this Contract shall be held exclusively in a State court in the County of San Diego. Contractor hereby waives the right to remove any action from San Diego County as is otherwise permitted by California Code of Civil Procedure Section 394.

8.9 Drafting Ambiguities. The Parties agree that they are aware that they have the right to be advised by counsel with respect to the negotiations, terms and conditions of this Contract, and the decision of whether or not to seek advice of counsel with respect to this Contract is a decision which is the sole responsibility of each Party. This Contract shall not be construed in favor of or against either Party by reason of the extent to which each Party participated in the drafting of the Contract.

8.10 Non-Discrimination. Contractor shall not discriminate against any employee or applicant for employment because of sex, race, color, age, religion, ancestry, national origin, disability, military or veteran status, medical condition, genetic information, gender expression, marital status, or sexual orientation. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their sex, race, color, age, religion, ancestry, national origin, disability, Attachment 1
City of Coronado Page 555
Contract No. 18-PS-CO-788 8
ACA Approved Template (10-11-21) SD #4821-4737-7394 v1r military or veteran status, medical condition, genetic information, gender expression, marital status, or sexual orientation and shall make reasonable accommodation to qualified individuals with disabilities or medical conditions. Such action shall include, but not be limited to the following: employment, upgrading, demotion, transfer, recruitment, or recruitment advertising, layoff or termination, rates of pay, or other forms of compensation, and selection for training, including apprenticeship. Contractor agrees to post in conspicuous places available to employees and applicants for employment any notices provided by City setting forth the provisions of this non-discrimination clause.

8.11 Public Works Contract. Contractor acknowledges that this is a public works contract.

Contractor represents and warrants that it is familiar with the requirements of the California Labor Code and agrees to comply at all times with relevant statutes and regulations, including, but not limited to the fact that Contractor must pay not less than prevailing wage rates as determined by the Director of Industrial Relations for all work done under this Contract. State of California prevailing wage rates can be found on the internet at http://www.dir.ca.gov/DLSR/PWD/Statewide.html. Contractor is responsible for determining the correct title for job classifications and determining the appropriate wage rate. Contractor agrees to perform this Contract in accordance with Attachment A and all the obligations set forth therein.

8.12 Contractor certifies that Contractor is aware of the requirements of the Immigration Reform and Control Act of 1986 (8 U.S.C. §§ 1101-1525) and has complied and will comply with these requirements, including, but not limited to, verifying the eligibility for employment of Contractor and all its agents, employees, representatives and subcontractors, and any other person performing any of the Work.

8.13 Rights Cumulative. All rights, options, and remedies of the City contained in this Contract shall be construed and held to be cumulative, and no one of the same shall be exclusive of any other, and the City shall have the right to pursue any one of all of such remedies or any other remedy or relief that may be provided by law or in equity, whether or not stated in this Contract.

8.14 Waiver. No waiver by either Party of a breach by the other Party of any of the terms, covenants, or conditions of this Contract shall be construed or held to be a waiver of any succeeding or preceding breach of the same or any other term, covenant, or condition herein contained. No waiver of any default of either Party hereunder shall be implied from any omission by the other Party to take any action on account of such default if such default persists or is repeated, and no express waiver shall affect a default other than as specified expressly in said waiver.

8.15 Severability. In the event that any part of this Contract is found to be illegal or unenforceable under the law as it is now or hereafter in effect, either Party will be excused from performance of such portion or portions of this Contract that is found to be illegal or unenforceable without affecting the remaining provisions of this Contract.

Attachment 1
City of Coronado Page 556
Contract No. 18-PS-CO-788 9
ACA Approved Template (10-11-21) SD #4821-4737-7394 v1r

8.16 Attachments Incorporated. All Attachments and Contract Documents referenced in this Contract are incorporated into the Contract by this reference.

THE REMAINDER OF THIS PAGE LEFT BLANK
Attachment 1
City of Coronado Page 557
Attachment 1
City of Coronado Page 558
Contract No. 18-PS-CO-788 11
ACA Approved Template (10-11-21) SD #4821-4737-7394 v1r

ATTACHMENT A

STATE PREVAILING WAGE RATES
State Prevailing Wage Rates: This project is a “public work” in accordance with Labor Code §1720, et seq. It is the sole responsibility of the Contractor to ensure that all workers employed in the execution of the contract are paid the correct prevailing wage rate of wages. Contractor is required to comply with California Labor Code Sections 1771, 1775, 1776, 1777.5, 1813, and 1815, which are incorporated by reference, and the Contractor agrees to comply with all the above-referenced provisions and any other statutes or regulations as may be applicable to the performance of its work on this project. Specifically, the Contractor agrees to:
a. Pay all workers not less than the general prevailing rate of per diem wages for work of similar character in the locality in which the public work is performed. b. Pay all workers not less than the general prevailing rate of per diem wages for holiday and for overtime work that exceeds 8 hours in one day and 40 hours in one week. c. Adhere to the compliance measures outlined in Labor Code 1775(b) for any subcontractor that the Contractor chooses to use on this project.
d. Maintain payroll records as required.
e. Comply with all apprenticeship requirements pursuant to Labor Code 1777.5.

Not less than the State general prevailing wages, as determined by the Director of the Department of Industrial Relations shall be paid by the Contractor and its subcontractors to all workers employed on the project, as applicable. The statutory provisions for penalties for failure to pay prevailing wages and for failure to comply with state’s wage and hour laws will be enforced.

The City has obtained from the Director of the Department of Industrial Relations said Director’s General Prevailing Wage Determinations for the locality in which the work is to be performed. Said determinations are on file and available for review online at the Department of Industrial Relations’ website located at: http://www.dir.ca.gov/DLSR/PWD. SB 854 Notice: City of Coronado public works projects are subject to compliance monitoring and enforcement by the Department of Industrial Relations (DIR) in accordance with Labor Code Section 1771.4(a)(l). As part of this program, Contractors and Subcontractors on Public Works Projects are required to be registered with DIR in accordance with Labor Code Section 1725.5. Unregistered contractors are not qualified to bid on, be listed in a bid, listed as a Subcontractor, or engage in the performance of any Public Works Contract, all as more particularly described in Labor Code Section 1771.1(a). The City of Coronado has no duty to accept a bid or enter into a contract without proof of the contractor’s current registration pursuant to Labor Code Section 1771.1(b). The prime Contractor shall be required to post the job site with all notices required by regulations per Labor Code Section 1771.4(a)(2), whether or not the City also posts.

Labor Code Compliance: Contractor shall comply with the provisions of the Labor Code requiring the payment of prevailing wages on public works, commencing with Section 1720. In accordance with Labor Code, Section 1775, the Contractor shall forfeit an amount, as determined by the Labor Commissioner, for each worker paid less than the applicable prevailing wage rate for the work or craft in which that worker is employed for any work done under Contract by Contractor or by any Subcontractor. Contractor agrees to pay the difference between the prevailing wage rate and amount paid to each worker in accordance with Labor Code, Section 1775(a)(2)(E).Pursuant to Labor Code, Attachment 1
City of Coronado Page 559
Contract No. 18-PS-CO-788 12
ACA Approved Template (10-11-21) SD #4821-4737-7394 v1r Section 1770, the Director of the Department of Industrial Relations has ascertained the general prevailing rate of per diem wages and a general prevailing rate for legal holiday and overtime work for each craft required for execution of the Contract. In accordance with Labor Code, Section 1773.2, copies of the prevailing rate of per diem wages are on file and can be viewed during normal business hours at Coronado City Hall, located at 1825 Strand Way, Coronado, CA 92118. Contractor shall post a copy of the applicable prevailing wage rates at the job site.

Wage rates set forth are the minimum that may be paid by the Contractor. Nothing herein shall be construed as preventing the Contractor from paying more than the minimum rates set. No extra compensation whatsoever will be allowed by the City due to the inability of the Contractor to hire labor at minimum rates, nor for necessity for payment by the Contractor of subsistence, travel time, overtime, or other added compensations, all of which possibilities are elements to be considered and ascertained to the Contractor’s own satisfaction in preparing its Bid.

If it becomes necessary to employ crafts other than those listed in the General Prevailing Wage Rate, the Contractor shall obtain a wage rate determination. The rates thus determined shall be applicable as minimum from the time of initial employment. Contractor shall be responsible for paying the applicable rate.

The Contractor and each Subcontractor shall keep and make available accurate payroll records in accordance with Labor Code, Section 1771.4(a)(3) and Section 1776. The record shall contain the names, addresses, social security numbers, work classifications, straight time, and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by the Contractor and/or Subcontractor in connection with the Work. Payroll records shall be certified and shall be on forms provided by the Division of Labor Standards Enforcement, or shall contain the same information as those forms. Upon written request by the City, the Contractor’s and Subcontractor’s certified payroll records shall be furnished within 10 days. The Contractor’s and Subcontractor’s certified payroll records shall be available for inspection at the principal office of the Contractor.

Apprentices: The Contractor and each subcontractor shall comply with the requirements of Labor Code Section 1777.5, and any related regulations regarding the employment of registered apprentices.

Properly registered apprentices shall be employed in the execution of the Work at the ratios required, but in no case shall the ratio be less than one hour of apprentice work for every five hours of journeyman work. Every apprentice shall be paid the standard wage paid to apprentices under the regulations of the craft or trade at which the apprentice is employed, and shall be employed only at the work of the craft or trade to which the apprentice is registered. The Contractor shall be responsible for compliance with Labor Code Section 1777.5 for all apprenticeable occupations.

Attachment 1
City of Coronado Page 560

CITY OF CORONADO
WORK ORDER: 24-HAR-008
Wastewater Main Replacement Project FY 16-17
Contract No. 20-PS-ES-733
This work order hires Harris & Associates, Inc. (CONSULTANT) to provide construction management services to the City of Coronado (CITY) for the Wastewater Main Replacement Project FY 16-17, as authorized per the as-needed professional services agreement No. 20-PS-ES733 awarded by City Council on March 17, 2020. This work order was authorized by City Council on July 16, 2024.
24-HAR-008-A SCOPE OF SERVICES
24-HAR-008-B PAYMENT FOR SERVICES
24-HAR-008-C SCHEDULE OF SERVICES
24-HAR-008-D LISTING OF SUBCONSULTANTS

CONSULTANT CITY
City of Coronado
Harris & Associates, Inc. Contract approved for content: ________________________________ ___________________________________ Mark Nasser, PE Date Vice President, PMCM
Jim Newton Date
City Engineer
Contract approved as to form: ________________________________ ___________________________________ Ehab Gerges Date Division President
Leon P. Firsht Date
Director of Public Services & Engineering
Attachment 2
City of Coronado Page 561

CITY OF CORONADO
WORK ORDER: 24-HAR-008-A
Wastewater Main Replacement Project FY 16-17
Contract No. 20-PS-ES-733

SCOPE OF SERVICES
This work order hires CONSULTANT to provide full construction management and inspection services (DESCRIBED SERVICES) for the Wastewater Main Replacement Project FY 16-17.

The DESCRIBED SERVICES to be provided include:

Field Inspection Services • Review and inspect Contractor’s work and operations regarding safety, traffic control, quality, and quantity of work • Check Contractor’s adherence to the environmental and regulatory conditions of the contract • Review work in accordance with contract specifications and plans • Resolve conflicts between plans and specifications and actual site conditions • Collaborate with the engineer of record on changes in the plans and specifications which are then referred to the City for approval and change order if necessary • Act as the initial point of contact for community questions/concerns • Maintain complete and accurate daily contract records (including photographs) • Document on-site and adjacent off-site conditions, operations, and any significant discussions or occurrences that occur in the field • Review and verify Contractor preconstruction video of site and surrounding areas and maintain submitted documentation • Review and verify that Contractor is maintaining redlines to accurately reflect any changes • Perform quantity measurements and calculations for work performed Construction Management Services
• Run preconstruction, weekly progress, and additional field meetings as needed • Manage responses to RFIs, change requests, and pay applications • Review submittals for completeness and manage appropriate reviews • Review Contractor’s adherence to scheduled completion of the work • Maintain organized project documentation
• Assist in the coordination of construction activities with outside agencies and utility companies as needed, including SDG&E and Navy
• Scheduling of inspection services provided by City consultants as needed including geotechnical, water quality testing, etc.
• Coordinate punch-list items with the Contractor
Attachment 2
City of Coronado Page 562
• Communicate regularly with the Project Manager on project status Construction Administration (Document Control & Labor Compliance) • Set-up and maintain a centralized construction project filing system utilizing Newforma software with remote access for authorized users • Provide a single point for referencing the latest version of documents for faster review turnaround times • Maintain status logs for submittals, RFIs, clarifications, and field directives • Review Contractor’s certified payroll submittals • Monitor and analyze the Contractor’s compliance with applicable California Labor Code and Code of Regulations • Continually monitor certified payroll submissions by all Contractors (prime, sub and subtier) Deliverables
• Daily reports for each working day inspected
• Monthly quantity calculations for each bid item
• Logs and documentation of all actions on submittals, RFIs, and change orders • Recommended approval of pay applications and change requests • Other items requested by the City
Attachment 2
City of Coronado Page 563

CITY OF CORONADO
WORK ORDER: 24-HAR-008-B
Wastewater Main Replacement Project FY 16-17
Contract No. 20-PS-ES-733

PAYMENT FOR SERVICES
A. PAYMENT FOR SERVICES: Payments to the CONSULTANT for the DESCRIBED SERVICES shall be made in the form of monthly payment for work completed on a project or task on a time and materials basis. All invoices submitted by the CONSULTANT shall show an hourly reconciliation of time spent on each task. Task shall be assessed in the sole and unfettered discretion of the Contract Officer or the designated representative The original invoice shall be provided for any subcontracted services. Normal processing time for payments is four (4) weeks.

CONSULTANT shall be paid on a time and material basis with a not to exceed fee of $367,800, which is based on the hourly rates and wage categories contained in On-Call Professional Services Agreement #20-PS-ES-733.

ACTIVITY
Classification PreConstruction Construction Close-Out Total Hours Rate Total Cost
Principal-inCharge 1 6 1 8 $277.06 $2,216
Senior
Construction
Manager
5 65 5 75 $240.12 $18,009
Construction
Manager 80 1040 80 1200 $227.80 $273,360
Construction
Administration 20 130 40 190 $172.39 $32,754
Subtotal $326,339
Contingency $32,634
Vehicles $8,750
Total Fee $367,723
B. REIMBURSABLE SERVICES: All reimbursables shall be paid under the time and materials invoicing for each plan review performed.

Attachment 2
City of Coronado Page 564

CITY OF CORONADO
WORK ORDER: 24-HAR-008-C
Wastewater Main Replacement Project FY 16-17
Contract No. 20-PS-ES-733

SCHEDULE OF SERVICES
CONSULTANT agrees to diligently pursue the work described. This work order contractually obligates the CONSULTANT to perform the DESCRIBED SERVICES to meet anticipated project needs from September 2024 to April 2025, on a time and material basis at the CITY’S request, unless otherwise approved by CITY. The expected duration is 140 working days.

Attachment 2
City of Coronado Page 565

CITY OF CORONADO
WORK ORDER: 24-HAR-008-D
Wastewater Main Replacement Project FY 16-17
Contract No. 20-PS-ES-733

SUBCONSULTANTS/SUBCONTRACTORS
Listed below are any and all subconsultants and subcontractors which the CONSULTANT plans to employ under this AGREEMENT. No change is allowed without the prior approval of the Contract Officer.

SUBCONSULTANT SUBCONSULTANT
None.

SUBCONSULTANT SUBCONSULTANT

SUBCONSULTANT SUBCONSULTANT

SUBCONSULTANT SUBCONSULTANT

Attachment 2
City of Coronado Page 566

THIS PAGE INTENTIONALLY LEFT BLANK

CITY COUNCIL STAFF REPORT
July 16, 2024 8a
PC 2024-03 CONSIDERATION OF A REQUEST FOR A TWO-LOT TENTATIVE PARCEL MAP

AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT UNDER CALIFORNIA ENVIRONMENTAL QUALITY ACT GUIDELINES SECTION 15332 FOR THE PROPERTY LOCATED AT 400 THIRD STREET/309 J AVENUE
RECOMMENDATION:

Adopt a Resolution approving the Tentative Parcel Map at 400 Third Street/309 J Avenue including the findings and conditions, and determine that the project is categorically exempt under Class 32 of the California Environmental Quality Act Guidelines Section 15332 (In-Fill Development).

BACKGROUND:

The request is for approval of a two-lot Tentative Parcel Map, per Coronado Municipal Code (CMC) Chapter 82.60 Minor Subdivisions.

The site is located at the southeast corner of Third Street and J Avenue. The existing property has 75 feet of frontage along J Avenue, is 100 feet deep, and does not have alley access. The total lot size is 7,500 square feet. The property is surrounded mainly by single-family dwelling units in the R-1B and R-1A Zone.

The zoning for the property is “R-1B Single-Family Residential,” which has a minimum lot size requirement of 3,500 square feet. The proposed subdivision will yield two lots. Lot 1 (northern parcel) will be 3,750 square feet and Lot 2 (southern parcel) will also be 3,750 square feet. Each of these proposed parcels complies with the minimum lot size.

The property’s General Plan Designation is Low Density Residential, which allows up to 12 dwelling units per acre (i.e., R-1B Zone). The project complies, since each proposed lot size (3,750 feet) can support one unit.

ANALYSIS:

CMC Sections 82.50 and 82.60.020 outline the requirements and procedures applicable to Tentative Maps. CMC Section 82.50.090(B) requires the Department of Community Development to “prepare a staff report to the Planning Commission containing recommendations regarding the proposed” Tentative Parcel Map. Pursuant to CMC Section 82.50.110(B), the Planning Commission is authorized to recommend to the City Council the approval, conditional approval, or denial of the Tentative Parcel Map. As appropriate, the Planning Commission is to recommend the kind, nature and extent of improvements that should be constructed or installed. The recommendation is then presented to the City Council according to CMC Section 82.50.120(A).

If the Tentative Parcel Map is approved, the Tentative Parcel Map will become final upon compliance with CMC Chapter 82.64 as a minor subdivision.

The Planning Commission held a public hearing on June 11, 2024 where they recommended that the City Council approve the Tentative Parcel Map with the conditions of approval found in the draft resolution (Attachment 1).

City of Coronado Page 567
The proposed two-lot Tentative Parcel Map will divide the existing 7,500 square foot lot into two parcels. The proposed Parcel 1 will be located at the corner of Third Street and J Avenue and will contain 3,750 square feet. Proposed Parcel 2 will be located to the south of Parcel 1, front on J Avenue, and will also contain 3,750 square feet. Each proposed parcel will front on J Avenue for setback purposes. Each proposed parcel complies with Subdivision Design Requirements, including minimum lot size, lot line dimensions, and off-street parking access.

The Tentative Parcel Map and proposed residential use is consistent with the General Plan and Zoning Ordinance, complies with the State Map Act and the Coronado Subdivision Ordinance, and was reviewed by the Public Services, Engineering, and Fire departments, whose proposed conditions are set out in Attachment 1.

The State Subdivision Map Act and Coronado Subdivision Ordinance provide authority to local agencies to impose conditions on the approval of subdivisions. The subdivider can be required to dedicate land to public use, make public improvements, pay required fees, or other conditions as needed to mitigate any adverse impacts of the subdivision on the community, to provide governmental services to subdivision residents, and to implement the requirements of the local general plan. Required public improvements have been incorporated into the attached list of conditions and are consistent with requirements of other subdivision maps.

The full size proposed Tentative Parcel Map is available to review in the Community Development Department office.

FISCAL IMPACT:

None.

ALTERNATIVE:

The Council may elect to deny the Tentative Parcel Map application and make appropriate findings.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

CEQA Category Exemption Class 32, In-Fill Development Projects.

PUBLIC NOTICE:

Notice of this public hearing was mailed to all property owners within a 300-foot radius of the property and published in the Coronado Eagle & Journal on July 3, 2024.

ATTACHMENTS:

1. Resolution No. 2024-47

2. Tentative Parcel Map

3. June 11, 2024 Draft Planning Commission Minutes

4. Declaration of Mailing/Publishing and Public Notice
Submitted By: Community Development Department / Marisa Smith City of Coronado Page 568
Attachment 1
RESOLUTION NO. 2024-47

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CORONADO, CALIFORNIA APPROVING A TWO-LOT
TENTATIVE PARCEL MAP ADDRESSED AS 400 THIRD
STREET/309 J AVENUE, CORONADO, CALIFORNIA
WHEREAS, the property owner, “JD Properties SD, LLC,” has, per the California Subdivision Map Act and the City of Coronado Subdivision Ordinance, requested City approval for a two-lot Tentative Parcel Map at 400 Third Street/309 J Avenue; and WHEREAS, the Planning Commission of the City of Coronado did, pursuant to Section 66452.2 of the Government Code, hold a public hearing on the Tentative Parcel Map on June 11, 2024, and subsequently adopted a motion, with findings and conditions, recommending approval to the City Council; and
WHEREAS, the City Council of the City of Coronado did, pursuant to Section 66452.2 of the Government Code, hold a public hearing on said subdivision request on July 16, 2023, and said public hearing was duly noticed as required by law and all persons desiring to be heard were heard at said hearing.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Coronado that the proposed Tentative Parcel Map for 400 Third Street/309 J Avenue be approved and that the approval be based upon the following findings:

1. The proposed map is consistent with the Coronado General Plan and Zoning Ordinance in that the proposed residential use and density of development are permitted under the General Plan and Zoning Ordinance requirements;

2. The design and improvement of the proposed subdivision are consistent with the Coronado General Plan and Zoning Ordinance in that the design provides sufficient lot area and street access for proper development, and that each of the two proposed parcels will contain at least 3,500 square feet (Parcel 1 = 3,750 square feet; Parcel 2 =3,750 square feet);

3. The site is physically suitable for the type of development in that the existing parcel of 7,500 square feet can support two parcels in the R-1B Zone;

4. The site is physically suitable for the proposed density of development in that the number of units in the project is within the 12 dwelling units per acre standard specified in the Coronado Zoning Ordinance for the R-1B Zone;

5. The design of the subdivision and the proposed improvements are not likely to cause substantial environmental damage, nor are they likely to substantially and avoidably injure fish or wildlife or their habitat. The project is categorically exempt from environmental review according to the California Environmental Quality Act (CEQA) under Class 32, Section 15332 of the CEQA Guidelines for In-Fill Development because (a) the project is consistent with the applicable general plan designation and all applicable general plan policies as well as with applicable zoning designation and regulations; (b) the proposed development occurs within city limits on a project site of no more than five acres substantially surrounded by urban uses; (c) the project site has no value, as habitat for endangered, rare or threatened species; (d) the approval of the project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and (e) the site can be adequately served by all required utilities and public services;

6. The design of the subdivision and the type of improvements are not likely to cause serious public health problems within the authority of the Health Officer; City of Coronado Page 569

7. The design of the subdivision and the type of improvements will not conflict with any easements acquired by the public at large and which are recorded or established by judgment of a court of competent jurisdiction;

8. The Tentative Parcel Map meets all the requirements of the Subdivision Map Act and the Coronado Subdivision Ordinance and was reviewed by the Public Services, Engineering, and Fire departments whose proposed conditions are incorporated below.

BE IT FURTHER RESOLVED that the approval is subject to the following conditions:

Fire Department

1. Owner shall install a NFPA 13 compliant fire sprinkler and alarm system throughout the development in accordance with the National Fire Protection Association and California Fire Code Standards to the satisfaction of the City of Coronado Fire and Community Development departments;

2. Owner shall provide appropriate Fire Department personnel and vehicle access including access to any locked common areas. All gates or other structures or devices that could obstruct fire access roadways or otherwise hinder emergency operations are prohibited unless they meet standards approved by the Fire Department and receive specific plan approval. In addition, provide a Knox Box if there are secured common areas;

3. The location of any Fire Department connection and back flow prevention device (OS&Y valve) shall be approved by the Fire Department and preferably face “J” Avenue. The back flow shall not be blocked or hidden, and it shall be identified to the satisfaction of the City of Coronado Fire Department;

4. Owner shall provide adequate water flow for firefighting based upon the square footage of the buildings and if needed, Owner shall upgrade the fire hydrant within the adjacent public rightsof-way in accordance with the California Fire Code standard to the satisfaction of the City of Coronado Fire Department;
San Diego Gas & Electric (SDG&E)

5. Prior to recordation, the applicant shall work with SDG&E to ensure that the existing gas line can continue to serve all units. The applicant shall call Dig Alert before any ground disturbance. The SDG&E Service Order Team can be reached at 619-230-7800; California American Water

6. The applicant shall provide and install individual water services/meters for each unit.

7. Prior to recordation, the applicant shall receive approval from CAW which demonstrates the water service in an approved location. These locations shall not include the driveway(s).

Public Services & Engineering Department

8. Owner shall maintain a minimum of three feet of clearance between driveways located on public property and any property lines extended, intersection radius, and any obstructions located on public property, e.g., utility poles, fire hydrants, street trees, etc. The relocation of any of these items to obtain the needed clearances shall be the sole responsibility of the Owner, at the Owner’s cost, subject to the review and approval of the City’s Public Services and Engineering Department;

9. Any existing sewer laterals used for new development shall be videotaped, at Owner’s expense, for its entire length to the sewer main to assess its condition and suitability for continued use. The video shall be furnished to the City of Coronado Public Services and Engineering Department in DVD format and, based on its review, repairs or replacement of the sewer line may be required, at the direction of the City of Coronado. Each building requires a separate sewer service lateral connected to the sewer main and the reservation of City of Coronado Page 570
easements may be required. The owner may have one sewer service lateral connection to serve the development; however, the responsibility of maintenance, replacement, etc. shall be delegated in the development’s Declaration of Covenants, Conditions, and Restrictions (CC&Rs). The CC&Rs shall be submitted to the Public Services and Engineering Department for review prior to the approval of the Final Map;

10. Prior to demolition, any existing sewer laterals shall be capped and staked. Sewer laterals that are not used by the proposed development shall be removed by Owner from the City’s rights-of-way and capped within 24 inches of the sewer main under permit issued by the Public Services and Engineering Department;

11. Owner shall underground all existing and future utilities to this site. Individual lots require separate utility service and utility easements shall be provided between the alley and the street. (Concrete replacement to accommodate the undergrounding of utilities shall be a minimum of 30 inches wide for the length of the repair);

12. Owner shall research and identify the location of existing utilities on the site prior to grading or excavating the site and the Owner shall be responsible to remove any utility location “mark out” indicators or paint;

13. Owner shall install all utilities, which are not possible to underground, such as back flow valves and transformers, on private property and said utilities shall be permanently screened from public view, at the direction of the City of Coronado Community Development Department.

14. Owner shall remove and replace portions damaged during construction of adjacent public sidewalk (with “historic” pattern) and/or curb and gutter in accordance with City standards and the San Diego Regional Standards Drawings (SDRSD) and verify limits of removal at the direction of the City Public Services and Engineering Department;

15. The adjacent public sidewalk shall remain safe, smooth and free of all trip or travel hazards during construction. Owner shall repair any public paving damaged (e.g., sidewalk, curb, gutter, alley, street) during the course of this project at the direction of the City’s Public Services and Engineering Department. All repairs to public property shall be in accordance with City standards and the San Diego Regional Standard Drawings;

16. Owner shall have a California licensed land surveyor install survey monuments at all property corners with locations indicated on the final parcel map and any monuments disturbed during construction shall be replaced by a licensed land surveyor at Owner’s expense;

17. Owner shall assure that the storage of building materials, equipment, or containers (other than for refuse purposes) in the City right-of-way does not occur;

18. Owner shall apply for an encroachment permit from the Public Services and Engineering Department for any amenities proposed for the adjoining public rights-of-way and the Owner shall assume responsibility for costs associated with the construction and maintenance of said amenities;

19. Owner shall obtain a Caltrans Encroachment Permit for the work within the Third Street rightof-way;

20. Owner shall assure that all work performed outside of the private property lines shall conform to the San Diego Regional Standard Drawings and Coronado Special Construction Provisions and prior to construction, a right-of-way permit shall be obtained from the Public Services and Engineering Department;

21. Owner shall comply with the City of Coronado’s policy for proposed construction of subterranean garages/cellars dated June 2, 2005, as warranted by the improvement plan;

22. The City does not typically permit the discharge of groundwater or construction runoff into the storm drain system. Consequently, disposal of groundwater extracted from the site into the City sewer system, if warranted, requires approval and a permit from the City’s Public Services and Engineering Department. The applicant must pay the costs for this operation and make payments of a processing fee charged the City by San Diego’s Metropolitan Waste Water Department;
City of Coronado Page 571

23. Owner shall maintain on-street parking spaces, parking and traffic markings, and signage adjacent to the subject property except as required to be modified to provide vehicle ingress and egress to the property or for temporary activity during construction as permitted by the City’s Public Services and Engineering Department;

24. Owner shall submit for approval by the City of Coronado a Drainage and Grading Plan in their proposed building permit plans for the purposes of justifying any onsite grading, drainage and improvements;

25. In accordance with Chapter 60.12 of the Coronado Municipal Code, a wastewater capacity fee will be charged prior to building permit issuance for sewer service connections to the sanitary sewer system;

26. Northern Parcel: The Owner shall submit a planting permit to Caltrans for any work within the right-of-way along Third Street, as this area is governed by Caltrans. The City does not maintain any trees along Third Street. The Owner shall either protect, irrigate, maintain or replace the existing street trees within the adjacent street public parkway along J Avenue in accordance with Chapter 52.32 of the Coronado Municipal Code at the direction of the City of Coronado Public Services and Engineering Department. If any existing trees along J Avenue shall be removed, the Owner shall plant a new tree from the City’s approved street tree list and said tree shall be a 24-inch box or bigger. Said trees shall be protected with an expandable collar, no turf shall be permitted within 12 inches of the trunk and all street trees shall be irrigated with bubblers from an independent automatic irrigation system (separate from turf or other landscaping within the parkway);

27. Southern Parcel: The Owner shall provide, plant, protect, irrigate, and maintain within the adjacent public parkway one shade tree from the approved street tree list, at the direction of the City of Coronado Public Services Department. Shade trees shall have a minimum 2-inch diameter trunk (measured 4 feet 6 inches above the root crown), be double staked and tied, and be irrigated by an independent automatic irrigation system. Palm trees shall have a minimum 8-foot brown trunk. Each tree shall be protected with an expandable collar and no turf shall be permitted within 12 inches of the trunk;

28. Owner shall provide an automatic irrigation system to all existing and proposed adjoining public property landscaping with all street trees irrigated with bubblers from an independent automatic irrigation system (separate from turf or other landscaping within the parkway);

29. Owner shall provide an area on private property, accessible by all occupants, for the storage of trash and recyclable materials to the satisfaction of the City of Coronado;

30. During project planning and design, the Owner shall incorporate effective construction and post-construction Best Management Practices and provide all necessary studies and reports as determined by the Public Services and Engineering Department Director demonstrating compliance with the applicable regulations and standards. All project applicants shall complete and submit the City's Storm Water Project Assessment Form (Form I-1 & I-2) to determine the project's construction and post-construction storm water categories. The category determines the requirements for the project. The Storm Water Assessment Form is available at: https://www.coronado.ca.us/DocumentCenter/View/1366/I-1-and-I-2-ProjectAssessment-Form-DOCX and shall be completed and submitted to the City of Coronado with the initial submittal to the City's Building Department counter, attention Public Services & Engineering. The City may require the Owner to execute and record a stormwater maintenance agreement in a form approved by the City Attorney;

31. Prior to approval of any and all demolition, construction, and building permits for the project, Owner shall demonstrate to the satisfaction of the Public Services and Engineering Department Director compliance with all of the applicable provisions of the following and any amendments thereto:
a) The City of Coronado Stormwater and Urban Runoff Management and Discharge Control (Coronado Municipal Code Chapter 61.04).

City of Coronado Page 572
b) NPDES Municipal Permit No. CAS0109266 (San Diego Regional Water Quality Control Board Order No. R9-2013-0001 or re-issuances thereof).
c) NPDES Construction Permit No. CAS000002 (State Water Resources Control Board Order No. R9-2012-0006 DWQ or re-issuances thereof).

Community Development Department

33. Owner shall comply with all applicable laws;

34. Owner shall reserve 20% of the units within the development “for rental” to persons qualified by the County Housing Authority as meeting Section 8 Rental Assistance requirements or to persons qualifying within very low and low income categories as established annually by the U.S. Department of Housing and Urban Development (HUD), or “for sale” to persons qualifying within moderate income categories as established annually by the U.S. Department of Housing and Urban Development (HUD), or shall pay a fee in lieu thereof of $7,000.00 for every unit within the project, at the option of the subdivider, for the purpose of providing affordable housing assistance in accordance with Chapter 82.21 of the Coronado Municipal Code (CMC);

35. Owner shall assure that any common areas and easements are identified and described on the Final Map;

36. Owner shall assure that no existing or future utility lines be permitted outside of the lot of which they serve unless located within an easement approved by the City of Coronado;

37. Owner shall assure that any easements be identified and described on the Final Map;

38. If the above conditions have not been completed and accepted in accordance with standards established by the City prior to approval of the Final Map, then the subdivider shall enter into a secured agreement with the City for 100% of the estimated cost of constructing the improvements and performing the conditions before the Final Map is approved pursuant to CMC Sections 82.16.060 - 82.16.110. Said agreement shall be prepared and recorded with the County Recorder’s Office. If the above conditions are not completed prior to approval of the Final Map and a secured agreement is approved, all of the above conditions shall be completed to the satisfaction of the City of Coronado prior to any newly constructed dwelling’s building permit being finaled or occupancy permitted;

39. The Applicant shall defend (with counsel acceptable to City), indemnify, and hold harmless the City, its agents, officers, and employees from any and all claims, actions, proceedings, damages, judgments, or costs, including attorney’s fees, against the City or its agents, officers, or employees, relating to the issuance of this permit including, but not limited to, any action to attack, set aside, void, challenge, or annul this development approval and any environmental document or decision. The City will promptly notify the Applicant of any claim, action, or proceeding. The City may elect to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification. In the event of such election, the Applicant shall pay all of the costs related thereto, including without limitation reasonable attorney’s fees and costs. In the event of a disagreement between the City and Applicant regarding litigation issues, the City shall have the authority to control the litigation and make litigation related decisions, including, but not limited to, settlement or other disposition of the matter. However, the Applicant shall not be required to pay or perform any settlement unless such settlement is approved by the Applicant;

40. In accordance with Coronado Municipal Code Section 82.50.130(A) and State Government Code Section 66452.6, the Tentative Map shall expire 24 months after City Council approval.

City of Coronado Page 573
PASSED AND ADOPTED by the City Council of the City of Coronado, California, this sixteenth day of July, 2024 by the following vote, to wit:

AYES:

NAYS:

ABSTAIN:

ABSENT:

Richard Bailey, Mayor
City of Coronado
Attest:
_________________________________
KELSEA HOLIAN, City Clerk of the
City of Coronado, California
City of Coronado Page 574
6' WOOD FENCE
CONC. CURB AND GUTTER
8' BLOCK WALL 8' CHAIN LINK NEW PROPERTY LINE SURVEY MARKER: 5/8" PIN WITH CAP STAMPED LS 6411. LOCATED ON 1'X'1' OFFSET TO SURVEY MARKER: DISC IN PROPERTY CORNER SIDEWALK STAMPED LS 6411. LOCATED ON 6' OFFSET TO PROPERTY CORNER SURVEY MARKER: DISC IN SIDEWALK STAMPED LS 6411. LOCATED ON 6' OFFSET TO PROPERTY CORNER. ELEVATION 19.46 SURVEY MARKER: DISC IN SIDEWALK STAMPED LS 6622. LOCATED ON 6' X6' OFFSET TO PROPERTY CORNER CONC. CROSS GUTTER DRIVEWAY GATE GATE WATER SERVICE TO 410 3RD STREET N63°03'35"W 100.02' N63°04'19"W 100.02' N63°02'54"W 100.01' IRON FENCE OVER 1' BRICK SHELF

EXISTING SEWER LATERAL
WS

TO BE RELOCATED
E-WATER SERVICE TO 410 3RD STREET W
WS

TO BE ABANDONED
40'
20' LANDING

CONCRETE
EASEMENT NOTES A 3' PRIVATE WATER SERVICE EASEMENT GRANT DEED DOCUMENT# 2024-0078868 OF OFFICAL RECORDS RECORDED MARCH 29, 2024 IN THE OFFICE OF THE SAN DIEGO COUNTY RECORDER. B PROPOSED 3' PRIVATE SEWER SERVICE EASEMENT GRANT DEED DOCUMENT 2024- 0078869 OFFICAL RECORDS RECORDED MARCH 29, 2024 IN THE OFFICE OF THE SAN DIEGO COUNTY RECORDER C PROPOSED 3' PRIVATE SEWER SERVICE EASEMENT FOR THE BENEFIT OF PARCEL 1- TO BE CONVEYED ON THE FINAL PARCEL MAP A
P-NEW WATER SERVICE B C 3' P-SEWER LATERAL 6.00'
WS WS
APRIL 10, 2024 SHYD

OWNER/APPLICANT

JD PROPERTIES SD LLC
400 3rd STREET AND 309 "J" AVE. CORONADO, CA 92118-1124 MAP STATEMENT THIS IS A TENTATIVE MAP FOR 2 RESIDENTIAL PARCELS. THE TOTAL NUMBER OF PROPOSED PARCELS IS 2. LEGAL DESCRIPTION

ASSESSOR PARCEL NUMBER

LOT AREA

SITE ADDRESS WATER SUPPLY SEWER SERVICE BENCH MARK

SURVEYOR NOTE
ZONING

TYPICAL SECTION
"J" AVENUE AND 3RD STREET

AC PAVEMENT NOT TO SCALE CL PL PLCONCRETE SIDEWALK
3 RD ST. 4TH ST. 5TH ST.VICINITY MAP NOT TO SCALE SITE
SS W W

WS HISTORIC RESOURCE COMMISSION NOTE
Attachment 2
City of Coronado Page 575

CORONADO PLANNING COMMISSION

MEETING MINUTES
Regular Meeting June 11, 2024
The regular meeting of the Coronado Planning Commission was called to order at 3:00 p.m., Tuesday, June 11, 2024, at the Coronado City Hall Council Chambers, 1825 Strand Way, Coronado, by Chair Ryan.

All communications received from the public for this meeting are available on the City’s website at www.coronado.ca.us and are part of the permanent record for this meeting.

MEMBERS PRESENT: Dana Cavanaugh
Peter Jensen
Scott Metzger
Jon Ryan
Ed Weisbrod

MEMBERS ABSENT: None
STAFF PRESENT: Richard Grunow, Director
Elizabeth Mitchell, Assistant City Attorney
Jesse Brown, Principal Planner
Marisa Smith, Associate Planner
Jim Newton, Assistant Director of PS&E
Denise Johnson, Administration Supervisor/Manager
Ofelia Andrade, Management Analyst
Priscilla De Vera, Administrative Coordinator

APPROVAL OF MINUTES
Motion by Commissioner Metzger to approve the minutes of the regular meeting of March 26, 2024.

Second by Commissioner Jensen.

AYES: Cavanaugh, Jensen, Metzger, Ryan, Weisbrod.

NAYS: None.

ABSENT: None.

ABSTAIN: None.

RECUSED: None.

The motion passed 5-0. The vote was announced.

ORAL COMMUNICATIONS AND OTHER MATTERS
Oral communications were held. No online public comments were submitted and no members of the public spoke on non-agenda items.

DIRECTOR’S REPORT
Director Richard Grunow had no updates.

Attachment 3
City of Coronado Page 576

PUBLIC HEARING
400 Third Street/309 J Avenue (PC 2024-03) – Consideration of a Request for a Two-Lot Tentative Parcel Map and Determination that the project is Categorically Exempt Under the California Environmental Quality Act Guidelines 15332.

Commissioner Weisbrod disclosed that he leases property within 500 feet of the property that is the subject of this decision and recused himself from participating. He left the dais at 3:03 p.m.

Associate Planner Marisa Smith provided the staff report and was available for questions of the Commission.

The applicant David Mezzacappa was available for questions of the Commission.

PUBLIC ORAL COMMUNICATIONS
Oral communications were held. No online public comments were submitted and no members of the public spoke.

COMMISSION DISCUSSION
Commissioner discussion was held.

COMMISSION ACTION
Motion by Commissioner Metzger to approve PC 2024-03 with staff recommendations.

Second by Commissioner Jensen.

AYES: Cavanaugh, Jensen, Metzger, Ryan.

NAYS: None.

ABSENT: None.

ABSTAIN: None.

RECUSED: Weisbrod.

The motion passed 4-0-1. The vote was announced.

Commissioner Weisbrod returned to the dais at 3:08 p.m.

PUBLIC HEARING
Request for Approval and Adoption of “A Resolution of the Planning Commission of the City of Coronado Finding that the Projects Proposed to be Added to the Fiscal Year (FY) 2024-25 Capital Improvement Program (CIP) are Consistent with the General Plan and Exempt from the California Environmental Quality Act”.

Administration Supervisor/Manager Denise Johnson provided the staff report and was available for questions of the Commission.

PUBLIC ORAL COMMUNICATIONS
Oral communications were held. No online public comments were submitted and no members of the public spoke.

Attachment 3
City of Coronado Page 577

COMMISSION DISCUSSION
Commissioner discussion was held.

COMMISSION ACTION
Motion by Commissioner Jensen to adopt the resolution as presented by staff finding that the proposed new Capital Improvement Program projects are consistent with the Coronado General Plan and exempt from the California Environmental Quality Act.

Second by Commissioner Metzger.

AYES: Cavanaugh, Jensen, Metzger, Ryan, Weisbrod.

NAYS: None.

ABSENT: None.

ABSTAIN: None.

RECUSED: None.

The motion passed 5-0. The vote was announced.

ADJOURNMENT
There being no further business, the meeting adjourned at 3:16 p.m. ____________________________
Richard Grunow, Director
Attachment 3
City of Coronado Page 578
Revised 01/15/2020

CITY OF CORONADO

DEPARTMENT OF COMMUNTITY DEVELOPMENT
In the Matter of the Notice of Meeting for
PC2024-03 400 Third Street: 2-lot Tentative Parcel Map

DECLARATION OF NOTICE BY MAIL
AND/OR

PUBLISHED LEGAL NOTICE
I, Priscilla De Vera, declare:

That I am a Citizen of the United States over the age of eighteen years, that I am employed within the County of San Diego, California, by the City of Coronado, and my business address is 1825 Strand Way, Coronado, California, that I mailed and/or published a legal notice, a true and correct copy of which is ATTACHED HERETO and made a part hereof, that such notices were mailed and/or will be printed in a newspaper of general circulation for the Regular Meeting of the City Council on July 16, 2024.

I declare under penalty of perjury that the foregoing is true and correct.

Published legal notice executed on July 3, 2024 at Coronado, California.

Mailing executed on July 5, 2024 at Coronado, California. ______________________________________
Priscilla De Vera, Administrative Coordinator
City of Coronado
Attachment 4
City of Coronado Page 579

THIS PAGE INTENTIONALLY LEFT BLANK

CITY COUNCIL STAFF REPORT
July 16, 2024 8b
INTRODUCTION OF AN ORDINANCE AMENDING SECTIONS 86.34.030 (C) AND 86.42.050 (F) OF THE CORONADO MUNICIPAL CODE AND CHAPTER V SECTION B.8.5 OF THE

ORANGE AVENUE CORRIDOR SPECIFIC PLAN
RECOMMENDATION:

Introduce Ordinance No. 2024-08 “An Ordinance of the City Council of the City of Coronado, California Amending Sections 86.34.030 (C) and 86.42.050 (F) of the Coronado Municipal Code and Chapter V Section B.8.5 of the Orange Avenue Corridor Specific Plan”.

BACKGROUND:

On April 9, 2024 City Council introduced an ordinance for municipal code amendments related to the adoption of the City’s 2021-2029 Housing Element Update (HEU). The amendments were required in order for the California Department of Housing and Community Development (HCD) to be able to certify the City’s HEU. Among other changes, the amendments established a minimum density of 16 dwelling units per acre in the R-4 Multiple Family Residential and the RPCD Residential – Planned Community Development zones. After confirming the City’s satisfactory compliance, HCD subsequently informed the City that a minimum density of 20 dwelling units per acre is required. This necessitates minor modifications to the municipal code.

ANALYSIS:

Government Code Section 65583.2, subdivision (h) establishes required minimum residential densities for jurisdictions that are required to rezone in order to compensate for a shortfall of sites available to accommodate the City’s regional housing need. A recent Court of Appeal decision, Martinez v. the City of Clovis, holds that cities may use an overlay zone to satisfy their rezoning requirements, but in such cases, if the underlying zone allows residential uses, the underlying zoning must meet certain minimum density thresholds. Under this new precedent, HCD has informed the City that Coronado is required to establish a minimum density of 20 dwelling units per acre throughout the R-4 (Multiple Family Residential) and R-PCD (Residential – Planned Community Development) zones rather than the 16 dwelling unit per acre density initially adopted.

Accordingly, the ordinance proposes to change the number ‘16’ to ‘20’ in three different sections of the Municipal Code. These proposed redline amendments (Attachment 2) were shared with HCD, which has concluded that once these final zoning amendments are adopted and take effect, the Housing Element will meet statutory requirements for certification.

Therefore, this ordinance (Attachment 1) is before you to gain final certification of the City’s 2021- 2029 HEU.

Pursuant to Government Code Sections 62854 to 62857, consideration of Municipal Code revisions to the zoning regulations require a noticed public hearing with the Planning Commission, which was held on March 26, 2024. The Planning Commission considered upzoning to implement the HEU and recommended City Council deny any proposed zoning changes increasing residential density.

City of Coronado Page 580
FISCAL IMPACT:

None.

ALTERNATIVE:

The City Council may choose to not amend the Municipal Code.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

The project is exempt from the requirements of the California Environmental Quality Act pursuant to Government Code Section 65759, because the project consists of actions necessary to bring the City’s General Plan into conformance with state law under the terms of a judgment entered by the Superior Court of San Diego on November 8, 2023. As provided in Government Code Section 65759, the City has prepared and Environmental Assessment (EA), the content of which substantially conforms to the required content for a draft environmental impact report set forth in Article 9 (commencing with Section 15140) of Title 14 of the California Code of Regulations, to analyze potential environmental impacts from the project. The EA identifies mitigation measures that are required to reduce potential impacts to a less than significant level related to Biology (preconstruction nesting bird survey), Cultural Resources (archaeological and Native American monitor), Geology and Soils (fault study and geotechnical reports required prior to construction, and paleontological monitoring), Greenhouse Gas Emissions (Require project attributes to comply with the 2022 Scoping Plan design requirements, and Noise (vibration impact analysis).

If adopted by the City Council, the EA will be incorporated by reference into the City’s General Plan, and future development projects on Housing Element Opportunity Sites would be required to comply with these Mitigation Measures. All other impact areas are considered less than significant without mitigation.

PUBLIC NOTICE:

A public hearing notice for the July 16, 2024 City Council meeting was published in the Coronado Eagle & Journal on July 3, 2024.

ATTACHMENTS:

1. Ordinance No. 2024-08

2. Proposed Redline Amendments
Submitted By: Community Development Department / Richard Grunow City of Coronado Page 581
ORDINANCE NO. 2024-08

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CORONADO,

CALIFORNIA AMENDING PORTIONS OF THE CORONADO MUNICIPAL

CODE RELATED TO THE SIXTH CYCLE HOUSING ELEMENT UPDATE
WHEREAS, State Housing Element law (Government Code Section 65580 et seq.) requires that the City Council adopt a Housing Element for the eight-year period 2021-2029 to accommodate the City of Coronado regional housing need allocation (RHNA) of 912 housing units, comprised of 481 lower-income units, 159 moderate-income units, and 272 above moderate-income units; and
WHEREAS, pursuant to Assembly Bill 1398 (AB 1398), because the City of Coronado had not adopted a compliant housing element within one year of the statutory deadline, rezones to accommodate the RHNA are required in order to be found compliant, which is required by Government Code Sections 65583(c)(1)(A), and 65583.2(c); and WHEREAS, the City Council of the City of Coronado seeks to comply with AB 1298 and Government Code Sections 65583(c)(1)(A), and 65583.2(c) through the updating of existing City regulations necessary to achieve the RHNA outlined in the City’s 6th Cycle Housing Element Update; and
WHEREAS, updating the City’s zoning ordinance would further many of the programs identified in the 6th Cycle Housing Element Update; and WHEREAS, a public hearing was held by the Planning Commission on March 26, 2024.

Evidence, both written and oral, was presented to, and considered by, the Planning Commission at this public hearing; and
WHEREAS, at the hearing, the Planning Commission considered upzoning to implement the Housing Element Update and recommended City Council deny any proposed zoning changes increasing residential density; and
WHEREAS, a public hearing was held by the City Council on July 16, 2024. Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing.

NOW, THEREFORE, the City Council of the City of Coronado hereby ordains as follows:

Section 1. All of the above statements are true and incorporated herein.

Section 2. An Environmental Assessment was prepared pursuant to Government Code Section 65759.

Section 3. Chapters 86.34 and 86.42 of the Coronado Municipal Code, as well as the Orange Avenue Corridor Specific Plan, are hereby amended to read as follows:

SEE EXHIBIT “A”
Section 4. Severability. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Chapter, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity Attachment 1
City of Coronado Page 582
or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Chapter, or its application to any other person or circumstance. The City Council declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared invalid or unenforceable.

EFFECTIVE DATE: This Ordinance shall be effective thirty (30) days after its adoption.

Within fifteen (15) days after its adoption, the City Clerk of the City of Coronado shall cause this Ordinance to be published pursuant to the provisions of Government Code Section 36933.

INTRODUCED AND FIRST READ at a regular meeting of the City Council of the City of Coronado, California, on the 16th day of July 2024; and THEREAFTER ADOPTED at a regular meeting of the City Council of the City of Coronado, California, on the 20th day of August, 2024, by the following vote:

AYES:

NAYS:

ABSTAIN:

ABSENT:

RICHARD BAILEY, Mayor
APPROVED AS TO FORM: ATTEST:

JOHANNA N. CANLAS, City Attorney KELSEA HOLIAN, City Clerk Attachment 1
City of Coronado Page 583
*****

STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO : ss.

CITY OF CORONADO )
I, KELSEA HOLIAN, City Clerk of the City of Coronado, hereby certify that the foregoing ORDINANCE NO. 2024-08 passed at the regular meeting of the City Council of the City of Coronado held on the 16th day of July 2024 after having been read at the regular meeting of said City Council held on the 20th day of August 2024.
_________________________________
KELSEA HOLIAN, City Clerk of the
City of Coronado, California
ORDINANCE NO. 2024-08
Attachment 1
City of Coronado Page 584

EXHIBIT A
Chapter 86.34

HOUSING ELEMENT OPPORTUNITY SITE OVERLAY ZONE
Sections:

86.34.010 Purpose.

86.34.020 Permitted Uses

86.34.030 Development Standards

86.34.040 By-Right Approval Process

86.34.010 Purpose
The purpose of the Housing Element Opportunity Site (HE) Overlay Zone is to facilitate housing production on opportunity sites identified in the General Plan Housing Element. The HE Overlay Zone aims to encourage new housing that is affordable to lower-income households with alternative development standards for projects that meet affordability criteria. There are two HE Subzones (HE-1 and HE-2), each with unique land use regulations and development standards.

86.34.020 Permitted Uses
Allowed uses in the HE Overlay Zone are the same as the underlying basic zone except as provided below.

A. All HE Subzones. Multiple-family residential development is allowed in the HE Overlay Zone.

B. HE-1 Subzone. On 919 C Avenue (APN 5373423400) and 901 C Avenue (APN 5373420100), as shown in Figure 86.34-1, a church, church-related thrift store, and school programing may continue as an allowed use if the site is developed with new residential uses.

Figure 86.34-1: 919 and 901 C Avenue

86.34.030 Development Standards
Development standards in the HE Overlay Zone are the same as the underlying basic zone except as provided below.

A. Standards for Qualifying Affordable Projects.

Attachment 1
City of Coronado Page 585

1. The standards in Table 86.34-1 apply to residential development that provides on-site affordable units (number of units and affordability levels) specified in Chapter 82.21 CMC. The minimum number of affordable units is calculated as the percentage of newly constructed units.

2. All standards in the underlying basic zone not modified by Table 86.34-1 continue to apply to qualifying affordable projects.

Table 86.34-1: Development Standards for Qualifying Affordable Projects HE-1 HE-2
Minimum lot area per unit 1,089 sq. ft. 1,089 sq. ft.

Height
Stories 4 stories 4 stories
Feet 42 ft. 42 ft. [1]
FAR 1.6 No max.

Structural Coverage 75% No max.

Setbacks
Front 15 ft. No min.

Side As required by CMC

86.14.060
No min.

Rear
As required by Orange
Avenue Corridor
Specific Plan V.B.4.A
No min.

Notes:
[1] Additional 5 ft. height permitted for vertical mixed-use development. The additional 5 ft. is permitted only if the ground-floor height is 14 feet or more measured floor to ceiling.

B. All Other Projects. All projects that do not qualify for alternative development standards pursuant to CMC

86.34.040.A. must comply with the standards in the underlying basic zone.

C. Minimum Density. For a project that creates one or more new dwelling units on a development site, the minimum density is 20 dwelling units per acre, with the exception that no minimum density standard applies to 517 Orange Avenue (APN 5363810500).

86.34.040 By-Right Approval Process
A. Pursuant to Government Code Section 65583.2, a proposed multiple-family residential development project with 20 percent or more of units affordable to lower-income households on the following sites shall be reviewed by the City through a by-right approval process:

1. 919 C Avenue (APN 5373423400, 5373420100)

2. 517 Orange Avenue (APN 5363810500)

3. 1224 10th Street (APN 5374521300)

4. 1001 C Avenue (APN 5374521400)

5. 150 B Avenue (APN 5361022800, 5361022000, 5361023100, 5361023200, 5361023300)

6. 700 Orange Avenue (APN 5370822700, 5370822500, 5370821500)

7. 201 6th Street (APN 5364111100, 5364111000, 5364110900, 5364110800, 5364110700, 5364110600, 5364110500, 5364110400, 5364110300, 5364110200, 5364110100, 5360100500) Attachment 1
City of Coronado Page 586
B. As used in this section, “Lower income households” are defined in Health and Safety Code Section 50079.5. “By-right approval” means that the project does not require a special use permit, planned unit development permit, or other discretionary City review or approval. A by-right approval process may include ministerial design review as required pursuant to Coronado Municipal Code Title 80. Any project that proposes or requires a subdivision map is required to comply with all State and local subdivision requirements.

Attachment 1
City of Coronado Page 587
Chapter 86.42
R-PCD – RESIDENTIAL, PLANNED COMMUNITY DEVELOPMENT ZONE Sections:

86.42.010 Purpose and intent.

86.42.020 Precise development plan (PDP).

86.42.030 Nonresidential uses.

86.42.040 Planning Commission and City Council action.

86.42.050 Minimum standards.

86.42.055 Housing Element Opportunity Sites

86.42.060 Development landscaping required.

86.42.010 Purpose and intent.

The purpose and intent of the R-PCD Zone regulations contained in this chapter are to provide for orderly, comprehensively planned residential development, including related open space and accessory community services consisting of desirable recreational and commercial facilities, as well as maintenance and operational facilities essential to the development. Such residential land development normally requires deviation from the normal zoning regulations and standards regarding lot size, yard requirements, bulk and structural coverage in an effort to maximize the benefits accruing to the citizens of the City especially for the preservation of site, view and physical access. (Ord. 1482)

86.42.020 Precise development plan (PDP).

Prior to any development occurring on any property designated R-PCD on the zoning map, the property owner or his authorized representative shall submit to the Community Development Department a precise development plan (PDP) prepared by a licensed engineer or architect which shall include the following information:

A. Legal description and boundary survey map of the exterior boundaries of land to be developed; B. A topographic map indicating anticipated grading or fill areas and all groupings of existing trees and other natural features. A topographic map shall indicate two-foot contour intervals; C. A preliminary report describing provisions for storm drainage, sewage disposal, water supply and other utilities and their location;
D. The number of dwelling units proposed by type of dwelling. This may be stated as a range with maximum and minimum number of units of each type;
E. The approximate total population anticipated in the entire development; F. The proposed standards of height, number of stories, open space, structural coverage, pedestrian and traffic circulation and number of dwelling units per acre of residential development; G. Pertinent social or economic characteristics of the development such as school enrollment, residents, employment, etc.;
H. The location, area, and type of sites proposed for public and private open space, recreational facilities, and schools (if any). For purposes of this section, open space may include, but is not limited to, swimming pools, pedestrian walkways, bicycle paths, boardwalks, driveways, arbors or shade structures designed as an integral part of the site’s landscaping. Open space shall not include dedicated or private streets, structures used for residential, commercial, professional or operational maintenance purposes, covered or uncovered required parking area or garages, but these must be shown on the precise development plan; I. The anticipated time for each phase, if any, of the development, including approximate starting and completion dates;
Attachment 1
City of Coronado Page 588
J. Offers to dedicate those areas shown on the precise development plan as “public access area” in a form acceptable to the City Attorney.

86.42.030 Nonresidential uses.

For the commercial, commercial recreational or other nonresidential development portion of any proposed R-PCD Zone development, the following information is required:

A. Types of uses proposed in the entire area;
B. Anticipated total number of persons employed; may be stated as a range; C. Methods proposed to control or limit dangerous or objectionable elements, if any, which may be caused or emitted by such proposed uses. Such dangerous or objectionable elements may include fire, explosion, noise or vibration, smoke, dust, odor, or other forms of air pollution, heat, cold, dampness, electrical or other disturbances, glare, or other substance or element which might adversely affect the surrounding area; D. The proposed standards of height, number of stories, open space, buffering, pedestrian and traffic circulation, offstreet parking and loading.

86.42.040 Planning Commission and City Council action.

The Planning Commission and City Council shall act upon the precise development plan in the manner prescribed by Chapter 86.55 CMC relating to special use permits. (Ord. 1956 § 18, 2004)

86.42.050 Minimum standards.

The following minimum development standards shall apply to any project in the R-PCD Zone:

A. All utility distribution facilities within the boundaries of the zone shall be located underground.

B. Off-street parking requirements shall be in accordance with the off-street parking performance standards of this title.

C. Design review shall be required in conformance with the provisions of this code.

D. In order to protect and preserve the scenic view of San Diego Bay and the metropolitan skyline beyond, and in order to provide for public access through the property identified in the General Plan as R-PCD, and in order to provide a buffer between more intense residential use and adjacent less intense residential use as identified in the General Plan, the precise development plan shall indicate the methods used to protect, provide or preserve such view and access.

E. No building or structure hereafter erected or structurally altered shall exceed 40 feet. (Ord. 1482) F. For a project that creates one or more new dwelling units on a development site, the minimum density is 20 dwelling units per acre. (Ord. 1482)
Attachment 1
City of Coronado Page 589
Chapter V – R-4 MULTIPLE-FAMILY RESIDENTIAL ZONE
ORANGE AVENUE CORRIDOR SPECIFIC PLAN Page 49
Chapter V
R-4 MULTIPLEFAMILY

RESIDENTIAL ZONE
A. PURPOSE AND INTENT
The purpose and intent of this Chapter is
to provide regulations that provide for
high quality, multiple family dwelling unit
structures in an intensely developed
residential environment with a minimum
gross lot size of one thousand ninety
(1,090) square feet per dwelling nit or a
minimum three thousand and five
hundred (3,500) square foot lot or
building site. The density Is forty (40)
dwelling units per acre.

Projects in the Housing Element
Opportunity Site (HE) Overlay Zone shall
comply with the standards in this Chapter
except as modified by Chapter 86.34
(Housing Element Opportunity Site
Overlay Zone) of the Coronado Zoning
Ordinance. In cases of conflict between
this section and Chapter 86.34, Chapter

86.34 governs.

B. LAND USES
B.1. Permitted and Accessory Uses
The following principal uses shall be
allowed in the R-4 zone:
a. Multiple dwelling structures on a
minimum three thousand five
hundred (3,500) square foot lot or
building site; (Ord. 1559)
b. Single family dwelling buildings or
duplexes of a permanent character,
permanently located on a minimum
three thousand, five hundred (3,500)
square foot lot or building site; (Ord.
1559, 1765, 1756)
c. Emergency Shelters, as defined in
Coronado Municipal Code Chapter

86.04, subject to standards in Section
IV.I.2 of this Specific Plan
d. Uses permitted with a Minor or Major
Special Use Permit per Chapter

86.55.170; (Ord. 1910)
e. The following accessory uses are
allowed in conjunction with the uses
specified in subsection a above:

1. Incidental home occupations
subject to the provisions of
Chapter 20.08; (Ord. 2022)

2. Accessory buildings subject to
the provisions of Chapter 86.56;
f. Small and Large residential care
facility, supportive housing, and
transitional housing;
g. Repealed by Ord. 2040. (Ord. 2040
§§ 12, 13, 2014; Ord. 2015 § 10,
2010)
B.2. Height Regulations
a. Multiple family dwellings or
nonresidential main buildings shall
not contain more than three stories
and shall comply with the following:
(Ord. 1981)

1. Main buildings with a flat roof
(inclusive of parapets and false
mansards), or sloped roof of
less than 2:12 shall not exceed
a maximum of 33’ in height;
(Ord. 1981)

2. Main buildings with a sloped
roof of 2:12 and 9reater shall
not exceed a maximum 35’ in
height; (Ord. 1981)
b. Single-family dwellings or duplexes.

Main buildings shall not contain more
than two stories and shall comply
Attachment 1
City of Coronado Page 590
Chapter V – R-4 MULTIPLE-FAMILY RESIDENTIAL ZONE
ORANGE AVENUE CORRIDOR SPECIFIC PLAN Page 50
with the following: (Ord. 1981)

1. Main buildings with a flat, false
mansard, or sloped roof with a
pitch of less than 3:12 shall not
exceed a maximum of 22 feet in
height except for parapet walls
which shall not exceed 25 feet in
height;

2. Main buildings with a sloped roof
of 3:12 and greater but less than
6:12 shall not exceed a maximum
of 27 feet, six inches in height;

3. Main buildings with a sloped roof
of 6:12 or greater shall not
exceed a maximum of 30 feet in
height. That portion of the roof
exceeding 27 feet, six inches
shall be limited to a maximum of
15 percent of the entire building
roof plan area.
c. Accessory buildings shall not contain
more than one story and shall comply
with the following: (Ord. 1981)

1. Accessory buildings with a flat,
false mansard, or sloped roof
with a pitch of less than 3:12
shall not exceed a maximum of
11 feet in height except for
parapet walls which shall not
exceed 14 feet in height;

2. Accessory buildings with a
sloped roof of 3:12 and greater
but less than 6:12 shall not
exceed a maximum of 14 feet,
four inches in height;

3. Accessory buildings with a
sloped roof of 6:12 or greater
shall not exceed a maximum of
15 feet, seven inches in height.

That portion of the roof
exceeding 14 feet, four inches
shall be limited to a maximum
of 15 percent of the entire
buildings roof plan area.

B.3. Front Yard Required
There shall be a front yard of not less
than twenty-five feet. (Ord. 1981)
B.4. Rear Yard Required
A. For multiple family dwellings or
nonresidential buildings, there shall
be a rear yard setback of not less than
five feet for the first story of the
building; not less than ten feet for the
second story of the building; and not
less than fifteen feet for the third story
of the building. (Ord. 1981)
B. For single family and duplex
development, there shall be a rear
yard of not less than ten percent of
the depth of the lot, provided,
however, such rear yard setback
need not exceed ten feet. There shall
be a minimum setback of five feet
from any rear property line for
accessory buildings and for covered
parking that is attached to the main
building. That portion of the covered
parking which is in the required rear
yard and is attached to the main
building, shall comply with the
allowable height for accessory
buildings. (Ord. 1981)
B.5. Side Yard Required
The minimum side yards shall be
required as set forth in Sections B.6 and
B.7 of the Zoning Ordinance.

B.6. Interior or Corner Lots
a. There shall be a side yard of not less
than ten percent of the width of the
lot, provided, however, that such side
yard shall not be less than three feet
and need not exceed five feet in
width. (Ord. 1817)
b. Where a single-family dwelling
building or duplex development is
proposed for two or more lots having
contiguous interior lot lines, one side
yard of each lot may be reduced to a
Attachment 1
City of Coronado Page 591
Chapter V – R-4 MULTIPLE-FAMILY RESIDENTIAL ZONE
ORANGE AVENUE CORRIDOR SPECIFIC PLAN Page 51
zero setback upon site plan approval.

The remaining side yard shall not be
less than twenty percent of the width
of the lot, provided, however, that
such side yard shall not be less than
six feet and need not exceed ten feet
in width. All side street lot lines and
interior lot lines adjoining property not
part of the development shall not be
permitted to have such a reduced
side yard. (Ord. 1559)
B.7. Reversed Corner Lots
a. There shall be a side yard on the side
street lot line of a reversed corner lot
of not less than fifty percent of the
front yards required by this title on the
first five building sites on the block
face that are adjoining or adja-cent to
the rear lot line of the reversed corner
lot. The remaining side yard and the
rear yard shall not be less than ten
percent of the width or depth of the
lot, respectively, provided, however,
that such side yard width or rear yard
depth shall not be less than three feet
and need not exceed five feet. The
front yard shall be as provided in
Section B.3.
b. Where a single-family dwelling
building or duplex development is
proposed for two or more lots having
contiguous interior lot lines, the
reduced side yards as provided for
under Section B.6 shall apply only to
the interior lot line of a reversed
corner lot. The side yard on the side
street lot line shall be increased by
the width of the setback required for
the interior lot line prior to reduction.
c. Reversed corner lots having one side
lot line on a street and the remaining
side lot line on a street or alley shall
maintain a setback on the side street
lot line of not less than ten percent of
the width of the lot and no less than
twenty-five feet. Section 86.56.630
(Exceptions, Average Front Yard
Setback Rule) may be applied to the
setback on the side street lot line. The
remaining side yard and the rear and
front yards, shall be not less than ten
percent of the width (for the side yard)
or depth (for the front and rear yards)
of the lot respectively, provided,
however, that such side yard width or
front, or rear yard depth shall be not
less than three feet and need not
exceed five feet. (Ord. 1675)
B.8. Lot Area per Family
Each multiple dwelling structure
hereafter erected or structurally altered
shall have a minimum total gross lot area
of one thousand ninety square feet per
dwelling unit on a minimum three
thousand five hundred square foot lot or
building site. (Ord. 1559)
B.8.5 Minimum Density
For a project that creates one or more
new dwelling units on a development
site, the minimum density is 20 dwelling
units per acre.

B.9. Maximum Structural Coverage
Allowed
a. The total structural coverage of
multiple dwelling or nonresidential
development shall not exceed sixty
percent of gross lot area. (Ord. 1981)
b. The total structural coverage of single
family dwelling building or duplex
development shall not exceed fifty
(50) percent of gross lot area. (Ord.
1756)
B.10. Off-Street Parking Required
Off-street parking standards shall be met
in accordance with Chapter 86.58.

B.11. Design Review Required
Design review is required in conformance
with this Code. Predesign meetings are
recommended with a Design Review
Attachment 1
City of Coronado Page 592
Chapter V – R-4 MULTIPLE-FAMILY RESIDENTIAL ZONE
ORANGE AVENUE CORRIDOR SPECIFIC PLAN Page 52
Commission subcommittee prior to
formal Design Review submittal. (Ord.
1981)
B.12. Development Landscaping
Required
a. A minimum of twenty-five percent of
the total site area of new residential
developments and fifteen percent of
the total site of new nonresidential
developments shall be landscaped.

Required parking spaces shall not be
considered as a portion of the
required landscaping. (Ord 1870)
b. When new construction or additions
over 500 square feet in size are
constructed, the property owner shall
plant a street tree in the public
rightofway adjacent to said property,
if space is available. All shade trees
shall have a minimum 2inch diameter
trunk (measured 4 feet 6 inches
above the root crown) and palm trees
shall have a minimum 6 foot brown
trunk. The tree species and planting
shall be at the direction of the City of
Coronado in accordance with City
specifications and the City's
approved street tree list. Irrigation of
said tree shall be the responsibility of
the adjoining property owner. (Ord.
1586, 1834).
c. See Section 86.56.800 for additional
landscape standards and Chapter

86.56 of the Zoning Ordinance for
landscape requirements pertaining to
off-street parking areas.

B.13. Floor Area Ratio
a. All multiple dwelling or nonresidential
development shall not exceed a Floor
Area Ratio of 1.60 (160%).
b. Single-family or duplex development
shall not exceed a floor area ratio
(FAR) of .54 (54%) except that the
FAR may be cumulatively increased
up to a maximum of .75 (75%) if the
development is designed:

1. With a different front elevation
compared to all other
development on both the
subject block face and the
block face immediately across
the street from the front of the
subject property if new
construction, replacement, or
50% or more reconstructed or
restored; and

2. In accordance with the
following Allowable FAR Table
when one or more of the

ADDITIONAL FEATURES
listed below are incorporated
into the project:

Table V1: Allowable Floor Area Ratio
No. of Additional Features Allowable FAR (%)
1 55
2 56
3 57
4 58
5 60
6 62
7 64
8 66
9 68
10 70
11 72
12 75
ADDITIONAL FEATURES:

1. A shade tree with no less than a 4-
inch diameter trunk (measured 4
feet 6 inches above the root
crown) planted in the required
front yard and an automatic
irrigation system, consistent with
water conservation laws, for all
landscaping in the front yard,
Attachment 1
City of Coronado Page 593
Chapter V – R-4 MULTIPLE-FAMILY RESIDENTIAL ZONE
ORANGE AVENUE CORRIDOR SPECIFIC PLAN Page 53
including the adjoining public
property.

2. Plans drawn and signed by a
California licensed building
designer or architect.

3. An addition designed to be
compatible to, and to retain, the
architectural style of the original
dwelling.

4. All roofs which have a slope of
2:12 or greater with eaves of at
least 12 inches for the entire roof
perimeter.

5. A variation of roof lines visible
from all adjoining street rights-ofway.

6. A dwelling and garage with all
facades being of a different color,
style, and texture, and all visible
roofs being of a different color, as
compared to the dwellings and
garages of the adjoining next door
neighbors.

7. A roof with a pitch of 6:12 or
greater for at least 50% of the
length of the roof.

8. Preservation, restoration, or
replication of historical or
architectural elements and design
of the original dwelling if an
addition to a dwelling designated
historic by the City of Coronado,
State of California, or the Federal
Government.

9. A raised, covered, and
unenclosed front porch which
projects out at least 6 feet from the
dwelling and has a width of at
least 70% of the width of the
dwelling. The front and side walls
of said porch shall be open except
for required guard rails.

10.All windows along both side
facades offset at least 12 inches
(edge to edge) from windows of
immediately adjoining dwellings.

Windows with a sill height of 66
inches or more above the floor are
not required to be offset.

11.A front second story facade
setback a minimum of 8 feet from
the dominant first story facade.

12.A 25-foot required front yard
setback where the average front
yard setback of the block face is
23 feet or less.

13.A front yard setback which is at
least 20% greater than the
minimum required front yard
setback for 40% or more of the
front facade width. Porches,
architectural features, and other
permitted projections shall be
allowed to project the standard
distance from the normal required
front yard setback line.

14.A maximum structural coverage of
45% with normal exceptions
permitted.

15.Approval from the Environmental
Design Review Commission.

16.A garage with the vehicle entry
door turned 90 degrees or more
from the street. This shall only be
permitted for required off-street
parking in fully enclosed garages
and on lots which do not have
alley access.

17.A courtyard along the side facade,
open to the sideyard, of at least 15
feet in width (parallel to the side
property line), and a minimum
depth of 30% of the lot width from
the normal setback line. Said
courtyard shall be open to the sky,
except for architectural features
Attachment 1
City of Coronado Page 594
Chapter V – R-4 MULTIPLE-FAMILY RESIDENTIAL ZONE
ORANGE AVENUE CORRIDOR SPECIFIC PLAN Page 54
which may project into the
courtyard up to a maximum of
10% of the lot width. Said
courtyard shall not be open to the
front or rear yards.

18.One side yard setback above the
first story which is at least 33%
greater than the minimum
required side yard setback.

19.One side yard setback at the first
story which is at least 33% greater
than the minimum required side
yard setback when item number
18 is implemented at the second
story on the same side.

20.An increased side yard setback
above 15 feet in height which
slopes away from the vertical
plane by at least 45 degrees for a
minimum of 50% of the side
facade length, continuous from
the front facade. Dormers shall be
permitted to encroach into the 45
degree setback, provided that
they shall be setback a minimum
of 5 feet from the property line,
shall not exceed a total width of
25% of the length of the roof
abutting the side yard, that each
dormer shall not exceed a width of
8 feet, and that there shall be a
minimum of 4 feet between each
dormer.

21.A second increased side yard
setback in accordance with item
no. 20 for the entire length of the
second or opposite side yard.

22.Two or more attached dwellings
and covered parking constructed
with a zero side yard setback on
two or more lots having
contiguous interior lot lines. The
remaining side yards shall not be
less than twenty percent of the
width of the lot, provided,
however, that such side yard shall
not be less than six feet and need
not exceed ten feet in width. All
side street lot lines and interior lot
lines adjoining property not part of
the development, shall not be
permitted to have such a reduced
side yard. (Ord. 1649, 1756, 1865)
B.14. Facade Treatment
a. For single family and duplex
development, the side facades of all
stories of main buildings and carriage
houses shall incorporate design
components to provide relief and
visual and architectural interest and
variety. Such components may
consist of facade plane offsets,
vertical and/or horizontal articulation
of the facade, architectural
projections, recessed
windows, varied texture and
materials, and similar design
features. Long uninterrupted exterior
walls shall be avoided. The facade
treatment shall not encroach into the
required side yards except as
permitted else where in the Municipal
Code. (Ord. 1981)
b. For multiple family and nonresidential
development, the front and side
facades of main buildings shall
incorporate design components to
assure visual interest and relief. Such
components may consist of
architectural projections, balconies,
facade plane offsets and similar
design features. (Ord. 1981)
c. For multiple family and nonresidential
development, facade plane offsets
are permitted to extend to the ground,
contain floor area and extend or
project into a required side yard
setback for a distance of not more
than one-third of the required side
yard setback width subject to the
following: (Ord. 1981)
Attachment 1
City of Coronado Page 595
Chapter V – R-4 MULTIPLE-FAMILY RESIDENTIAL ZONE
ORANGE AVENUE CORRIDOR SPECIFIC PLAN Page 55

1. No single facade plane offset
shall exceed a maximum of 20'
in length.

2. That building volume
encroaching into the required
setback shall be reduced by
25% in a reciprocal fashion
behind the setback line on the
same side of the building.

3. The cumulative total linear
distance of facade plane
offsets and architectural
projections into required side
yards, measured at their
widest point, along a given
side facade shall not exceed
28 feet.

B.15. Additional Development
Standards
See Chapter 86.04, Chapter 86.56 and
Chapter 86.58 of the Municipal Code for
additional standards.

Attachment 1
City of Coronado Page 596
Attachment 2

ZONING ORDINANCE
Chapter 86.34 HOUSING ELEMENT OPPORTUNITY SITE OVERLAY ZONE

86.34.030 Development Standards
Development standards in the HE Overlay Zone are the same as the underlying basic zone except as provided below.

C. Minimum Density. For a project that creates one or more new dwelling units on a development site, the minimum density is 16 20 dwelling units per acre, with the exception that no minimum density standard applies to 517 Orange Avenue (APN 5363810500).

Chapter 86.42 R-PCD – RESIDENTIAL, PLANNED COMMUNITY DEVELOPMENT ZONE

86.42.050 Minimum standards.

The following minimum development standards shall apply to any project in the R-PCD Zone:

F. For a project that creates one or more new dwelling units on a development site, the minimum density is 16 20 dwelling units per acre. (Ord. 1482)

ORANGE AVENUE CORRIDOR SPECIFIC PLAN
Chapter V
R-4 MULTIPLEFAMILY RESIDENTIAL ZONE
B.8.5 Minimum Density
For a project that creates one or more new dwelling units on a development site, the minimum density is 16 20 dwelling units per acre.

City of Coronado Page 597
Item 10a
Councilmember Donovan
Agenda Item 10a: Report on Inter-Agency Committees, Board Assignments, and Meetings for Councilmember Mike Donovan
Period of report: Jun 1, 2024 to Jun 30, 2024

Date Activity
6/3/24 Island Express On-Demand, Free Electric Shuttle service launch. 6/4 Coronado MainStreet Board of Directors meeting.

Met with City Manager Tina Friend.
6/5 Wag’n Tails New Ownership Grand Reopening Ribbon Cutting. 6/17 Coronado Naval Complexes Coordinating Group meeting. 6/18 Met with City Manager Tina Friend.

Ribbon Cutting Ceremony for reopening of Edward Jones Coronado office. 6/19 Cultural Arts Commission Visual Arts subcommittee meeting. 6/20 San Diego Metropolitan Transit System (MTS) Board of Directors meeting. 6/21 League of Wives Memorial Dedication in Star Park.
6/27 Met with resident Lou Smith.

Coronado Historical Association Board of Directors meeting.

Coronado Cays Homeowners Association Board meeting.
6/28 Ribbon Cutting Opening for L’Orangiere restaurant.

City of Coronado Page 598

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CITY COUNCIL STAFF REPORT
July 16, 2024 10b
2024 CORONADO COMMUNITY SURVEY REPORT
RECOMMENDATION:

Receive and file the 2024 Coronado Community Survey Report.

BACKGROUND:

Since 2014, the City has proactively sought community feedback through a satisfaction survey soliciting resident input on community livability. The survey is an important tool to assist in identifying priorities that align with community feedback. The survey is developed by the National Research Center in collaboration with the International City/County Management Association and executed by Polco.

The National Community Survey (NCS) compares opinions from a random, statistically valid sample of residents on a variety of quality of life issues. The results of this scientific survey are then compared to a database of nearly 500 National Benchmark communities throughout the United States. The City has conducted the survey approximately every two years, with a gap between 2018 and 2021 due to COVID and a second gap between 2021 and 2024 to regain alignment with event numbered years. The survey was last administered in 2021.

ANALYSIS:

Survey Administration
The community survey opened March 5, 2024 and closed April 16, 2024. Of the 2,820 households that received an invitation to participate, 478 completed the survey, with an overall response rate of 17% and a margin of error of ±5%. Results are statistically weighted to reflect the existing demographics of the City of Coronado. The survey included standardized questions, with one customized question, to facilitate comparison to other benchmark communities.

In addition to the randomly selected sample of households, an open-participation survey was made available to the Coronado community via the City’s website. This survey was identical to the random sample survey, with two small updates: it asked respondents whether they are a resident of Coronado and how they had heard about the survey. The open-participation survey was available at the start of April for two weeks. A tab at the end of the online report provides the open-participation responses.

When looking at the survey results, it is important to understand that the scores provided throughout the report do not equate with typical letter grades, where a score of 75% would be considered a “C.” Rather, the evaluations shown for individual survey items represent the “percent positive” ratings provided for each—that is, the percentage of respondents who selected one of the top two most positive response options (e.g., “excellent” or “good”, “very safe” or “somewhat safe”, etc.), excluding neutral or negative responses.

Survey Summary Results
Overall, respondents said the City is a highly desirable and safe place to live, giving positive City of Coronado Page 599
ratings to Coronado as a place to live and its overall quality of life. Of the 122 evaluative survey items, Coronado residents rated 84 items higher than the national average, 34 items similar, and 4 lower. This indicates widespread satisfaction with life in the community, while also highlighting a few specific areas where residents see opportunities for improvement.

Quality of Life
Please rate each of the following aspects of quality of life in Coronado. (% excellent or good)

Facets of Community Livability
The survey asks residents to rate the quality of ten different overall categories that cumulatively quantify quality of life within Coronado and compares those facets of livability to other benchmark communities. The chart below summarizes those category rankings. Coronado exceeds the national benchmarks on 8 out of 10 categories while presenting similar rankings in the remaining two categories.

Highest-performing areas
• Residents continued to enjoy a high quality of life in Coronado in 2024, with nearly all related evaluations, surpassing national comparison communities. • While still named a top priority for the community, safety ratings provided by residents were overwhelmingly positive.

City of Coronado Page 600
• The city maintained above-average marks for survey items related to alternative transportation, including the ease of travel by bicycle, walking, and public transportation. • Assessments of community engagement opportunities trended upward over both 2021 and 2018 results.

Lowest-performing areas
• Nearly all survey items related to Coronado's utilities experienced significant declines from 2021 results, with the largest drops seen in:
o stormwater management
o sewer services
o power (electric and/or gas) utility
o utility billing
o overall quality of the utility infrastructure
• Water resources also received significantly less favorable evaluations this year. • Reviews for the ease of travel by car and ease of public parking in the community ranked below national averages.
• Results suggested a growing concern over affordability, showing notable declines in the cost of living and availability of affordable quality food.

Other notable results:
• When asked to share in their own words the single most important thing the City could do to improve their quality of life, 26% of residents indicated significant concern around cross border sewage impacting ocean access locally.
• Respondents also identified managing traffic and limiting traffic noise as an important focus area for the City.

Areas of greatest change since 2021:

When compared to results from Coronado’s community survey results from 2021, in 2024, 7 received ratings that were statistically significantly higher than the previous survey iteration, 78 received similar ratings, and 37 received lower ratings.

Most Notable Increases:
• Affordable high-speed internet access (+11%)
• Opportunities to attend special events and festivals (+10%) • Openness and acceptance of the community toward people of diverse backgrounds (+9%) • Opportunities to attend cultural/arts/music activities (+7%) • Opportunities to participate in social events and activities (+7%) • Opportunities to volunteer (+6%)
Most Notable Decreases:
• Stormwater management (storm drainage, dams, levees, etc.) (-38%) • Water resources (beaches, lakes, ponds, riverways, etc.) (-36%) • Overall quality of the utility infrastructure (water, sewer, storm water, electric/gas, broadband) (-27%)
• Sewer services (-20%)
• Power utility (-17%)
The full survey results are available on the City’s Project Coronado website at projectcoronado.org/community-survey-2024.

City of Coronado Page 601
FISCAL IMPACT:

The total cost of the Community Survey was $31,400 and was included within the Fiscal Year 2023/2024 City Manager's Budget (10012201-8055).

ALTERNATIVE:

None.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

Not Applicable.

PUBLIC NOTICE:

No notice required.

ATTACHMENTS:

1. Coronado Community Survey Report – Summary of Results Submitted By: City Manager's Office / Andrea McCullough City of Coronado Page 602
Coronado, CA
The National Community Survey
Report of Results
2024
Visit us online!
www.polco.us
National Research Center at Polco
is a charter member of the AAPOR
Transparency Initiative, providing
clear disclosure of our sound and
ethical survey research practices.

Report by:

Attachment 1
City of Coronado Page 603
*A Quick Note About the Survey
In the spring of 2024, the City of Coronado partnered with Polco to conduct The National Community Survey™ (The NCS™). This survey solicited resident feedback on various aspects of community livability to help local government leaders and staff assess existing services and make informed decisions moving forward.

The report includes benchmark comparisons for individual survey items, which compare ratings given by Coronado residents to those from residents in other communities nationwide.

Of the 122 evaluative survey items, Coronado residents rated 84 items higher than the national average, 34 items similar, and 4 lower. This indicates widespread satisfaction with life in the community, while also highlighting specific areas where residents see opportunities for improvement.

When looking at the survey results, it is important to understand that the scores provided throughout the report do not equate with typical letter grades, where a score of 75% would be considered a “C.” Rather, the evaluations shown for individual survey items represent the “percent positive” ratings provided for each—that is, the percentage of respondents who selected one of the top two most positive response options (e.g., “excellent” or “good”, “very safe” or “somewhat safe”, etc.), excluding neutral or negative responses. In addition, different survey items cannot always be directly compared. Not all aspects of community livability will be rated equally, as public perception and expectations vary significantly, and some categories or services naturally receive lower positive ratings compared to others.

Attachment 1
City of Coronado Page 604
About The NCS™
The National Community Survey™ (The NCS™) report is about the “livability” of Coronado. A livable community is a place that is not simply habitable, but that is desirable. It is not only where people do live, but where they want to live. The survey was developed by the experts from National Research Center at Polco.

Great communities are partnerships of the government, private sector, community-based organizations and residents, all geographically connected. The NCS captures residents’ opinions considering ten central facets of a community:
• Economy
• Mobility
• Community Design
• Utilities
• Safety
• Natural Environment
• Parks and Recreation
• Health and Wellness
• Education, Arts, and Culture
• Inclusivity and Engagement
The report provides the opinions of a representative sample of 478 residents of the City of Coronado collected from March 5, 2024 to April 16, 2024. The margin of error around any reported percentage is 5% for all respondents and the response rate for the 2024 survey was 17%. Survey results were weighted so that the demographic profile of respondents was representative of the demographic profile of adults in Coronado. 1 Attachment 1
City of Coronado Page 605
How the results are reported
For the most part, the percentages presented in the following tabs represent the “percent positive.” Most commonly, the percent positive is the combination of the top two most positive response options (i.e., excellent/good, very safe/somewhat safe, etc.). On many of the questions in the survey respondents may answer “don’t know.” The proportion of respondents giving this reply is shown in the full set of responses included in the tab “Complete data.” However, these responses have been removed from the analyses presented in most of the tabs. In other words, the tables and graphs display the responses from respondents who had an opinion about a specific item.

Comparisons to benchmarks
NRC’s database of comparative resident opinion is comprised of resident perspectives gathered in surveys from over 500 communities whose residents evaluated the same kinds of topics on The National Community Survey.

The comparison evaluations are from the most recent survey completed in each community in the last five years.

NRC adds the latest results quickly upon survey completion, keeping the benchmark data fresh and relevant. The communities in the database represent a wide geographic and population range. In each tab, Coronado's results are noted as being “higher” than the benchmark, “lower” than the benchmark, or “similar” to the benchmark, meaning that the average rating given by Coronado residents is statistically similar to or different (greater or lesser) than the benchmark. Being rated as “higher” or “lower” than the benchmark means that Coronado's average rating for a particular item was more than 10 points different than the benchmark. If a rating was “much higher” or “much lower,” then Coronado's average rating was more than 20 points different when compared to the benchmark.

Trends over time
Trend data for Coronado represent important comparison data and should be examined for improvements or declines.¹ Deviations from stable trends over time represent opportunities for understanding how local policies, programs, or public information may have affected residents' opinions. If the difference is greater than six percentage points between the 2021 and 2024 surveys, the change is statistically significant.

1. In 2020, The NCS survey was updated to include new and refreshed items. Consequently, some of the trends may be impacted due to wording modifications that could have potentially altered the meaning of the item for the respondent. 2 Attachment 1
City of Coronado Page 606
Conducting the survey
The 3,000 randomly selected households received mailings beginning on March 5, 2024 and data collection for the survey remained open for six weeks. The first mailing was a postcard inviting the household to participate in the survey. The next mailing contained a cover letter with instructions, the survey questionnaire, and a postage-paid return envelope. All mailings included a web link to give residents the opportunity to respond to the survey online, as well as QR codes to further encourage participation. All follow-up mailings asked those who had not completed the survey to do so, and those who had already done so to refrain from completing the survey again.

About 6% of the 3,000 mailed invitations or surveys were returned because the household address was vacant or the postal service was unable to deliver the survey as addressed. Of the remaining 2,820 households that received the invitations to participate, 478 completed the survey, providing an overall response rate of 17%. The response rate was calculated using AAPOR’s response rate #2 for mailed surveys of unnamed persons.² It is customary to describe the precision of estimates made from surveys by a “level of confidence” and accompanying “confidence interval” (or margin of error). A traditional level of confidence, and the one used here, is 95%. The 95% confidence interval can be any size and quantifies the sampling error or imprecision of the survey results because some residents’ opinions are relied on to estimate all residents’ opinions. The margin of error for the City of Coronado survey is no greater than plus or minus five percentage points around any given percent reported for all respondents (478 completed surveys).

In addition to the randomly selected “probability sample” of households, a link to an online open-participation survey was publicized by the City of Coronado. The open-participation survey was identical to the random sample survey, with two small updates; it asked a question to confirm the respondent was a resident of Coronado and also a question about where they heard about the survey. The open-participation survey was open to all city residents and became available on April 2, 2024. The survey remained open for two weeks. The data presented in the following tabs exclude the open participation survey data, but a tab at the end provides the complete frequency of responses to questions by the open-participation respondents.

Analyzing the data
Methods
Selecting survey recipients
All households within the City of Coronado were eligible to participate in the survey. A list of all households within the zip codes serving Coronado was purchased from Polco's mailing vendor, Go-Dog Direct, based on updated listings from the United States Postal Service. Since some of the zip codes that serve the City of Coronado households may also serve addresses that lie outside of the community, the exact geographic location of each housing unit was compared to community boundaries using the most current municipal boundary file. Addresses located outside of the City of Coronado boundaries were removed from the list of potential households to survey.

Each address identified as being within city boundaries was further identified as being within either "North Coronado" or "South Coronado." From that list, addresses were randomly selected as survey recipients, with multi-family housing units (defined as those with a unit number) sampled at a rate of 5:3 compared to single family housing units.

An individual within each household was randomly selected using the "birthday method". The birthday method selects a person within the household by asking the “person who most recently had a birthday” to complete the questionnaire. The underlying assumption in this method is that day of birth has no relationship to the way people respond to surveys. This instruction was contained in the introduction of the survey. 3 Attachment 1
City of Coronado Page 607
Unweighted Weighted Target ⁴
Age 18-34
35-54
55+
Area North Coronado
South Coronado
Hispanic
origin
No, not of Hispanic, Latino/a/x, or Spanish
origin
Yes, I consider myself to be of Hispanic,
Latino/a/x, or Spanish origin
Housing
tenure
Own
Rent
Housing type Attached
Detached
Race &
Hispanic
origin
Not white alone
White alone, not Hispanic or Latino
Sex Man
Woman
Sex/age Man 18-34
39%
27%
34%
55%
36%
9%
81%
17%
2%
35%
65%
37%
63%
22%
78%
18%
82%
16%
84%
7%
93%
46%
54%
46%
54%
23%
77%
52%
48%
52%
48%
60%
40%
70%
30%
76%
24%
85%
15%
42%
58%
48%
52%
58%
42%
Analyzing the data
Responses from mailed surveys were entered into an electronic dataset using a “key and verify” method, where all responses are entered twice and compared to each other. Any discrepancies were resolved in comparison to the original survey form. Range checks as well as other forms of quality control were also performed. Responses from surveys completed on Polco were downloaded and merged with the mailed survey responses.

The demographics of the survey respondents were compared to those found in the 2020 Census and 2022 American Community Survey estimates for adults in the City of Coronado. The primary objective of weighting survey data is to make the survey respondents reflective of the larger population of the community. The characteristics used for weighting were age, sex, race, Hispanic origin, housing type, housing tenure, and area. No adjustments were made for design effects. Weights were calculated using an iterative, multiplicative raking model known as the ANES Weighting Algorithm.³ The results of the weighting scheme for the probability sample are presented in the following table.

NRC aligns demographic labels with those used by the U.S. Census for reporting purposes, when possible. Some categories (e.g., age, race/Hispanic origin, housing type, and length of residency) are combined into smaller subgroups.
4 Attachment 1
City of Coronado Page 608
The survey datasets were analyzed using all or some of a combination of the Statistical Package for the Social Sciences (SPSS), R, Python and Tableau. For the most part, the percentages presented in the reports represent the “percent positive.” The percent positive is the combination of the top two most positive response options (i.e., excellent/good, very safe/somewhat safe, essential/very important, etc.), or, in the case of resident behaviors/participation, the percent positive represents the proportion of respondents indicating “yes” or participating in an activity at least once a month.

On many of the questions in the survey respondents may answer “don’t know.” The proportion of respondents giving this reply is shown in the full set of responses included in the tab “Complete data”. However, these responses have been removed from the analyses presented in the reports. In other words, the tables and graphs display the responses from respondents who had an opinion about a specific item.

Contact
The City of Coronado funded this research. Please contact Andrea McCullough of the City of Coronado at [email protected] if you have any questions about the survey.

Study Limitations
All public opinion research is subject to unmeasured error. While the methodologies employed for this survey were designed to minimize this error as much as possible, these other sources of potential error should be acknowledged. Non-response error arises when those who were selected to participate in the survey did not do so, and may have different opinions or experiences than those who did respond. Coverage error refers to the possibility that some respondents that should have been included in the surveyed population were not (e.g., for a general resident survey, USPS mailing lists may exclude certain types of housing units, such as multi-family buildings where mail is delivered to a common area rather than to a specific unit (though this is rare), or where mail is received at a PO box instead of the at household's physical location. Finally, recall bias occurs when respondents may not perfectly remember their experiences in the past year (such as participation in social or civic events), and social desirability bias may cause respondents to answer in ways they think cast their responses in a more favorable light.

Survey Validity
See the Polco Knowledge Base article on survey validity at https://info.polco.us/knowledge/statistical-vali

2. See AAPOR's Standard Definitions for more information at https://aapor.org/standards-and-ethics/standard-definitions/

3. Pasek, J. (2014). ANES Weighting Algorithm. Retrieved from https://surveyinsights.org/wp-content/uploads/2014/07/Full-anesrake-paper.pdf

4. Targets come from the 2020 Census and 2022 American Community Survey Sex Man
Woman
Sex/age Man 18-34
Man 35-54
Man 55+
Woman 18-34
Woman 35-54
Woman 55+
42%
58%
48%
52%
58%
42%
20%
12%
9%
18%
15%
25%
30%
15%
3%
25%
21%
5%
47%
11%
1%
34%
7%
1%
5 Attachment 1
City of Coronado Page 609
Key Findings
Highest-performing areas:
§ Residents continued to enjoy a high quality of life in Coronado in 2024, with nearly all related evaluations surpassing national comparison communities.
§ While still named a top priority for the community, safety ratings provided by residents were overwhelmingly positive.
§ The city maintained above-average marks for survey items related to alternative transportation, including the ease of travel by bicycle, walking, and public transportation. § Assessments of community engagement opportunities trended upward over both 2021 and 2018 results, including:
o opportunities to participate in social events and activities, o opportunities to volunteer,
o opportunities to attend special events and festivals, and o opportunities to attend cultural/arts/music activities.

Lowest-performing areas:
§ Nearly all survey items related to Coronado's utilities experienced significant declines from 2021 results, with the largest drops seen in:
o stormwater management,
o sewer services,
o power (electric and/or gas) utility,
o utility billing, and
o the overall quality of the utility infrastructure.
§ The quality of Coronado’s water resources also received significantly less favorable evaluations this year. § Reviews for the ease of travel by car and ease of public parking in the community ranked below national averages, indicating a possible avenue for renewed focus. § Results suggested a growing concern over affordability, showing notable declines in the cost of living and availability of affordable quality food.

Other notable results:
§ When asked to share—in their own words—the single most important thing the City could do to improve their quality of life, 26% of residents indicated significant concern around sewage and stormwater management, particularly as it relates to water quality along the beaches in Coronado. § Respondents also identified managing traffic and limiting traffic noise as an important focus area for the City.

Areas of greatest change since 2021:
6 Attachment 1
City of Coronado Page 610
Areas of greatest change since 2021:

Of the 122 evaluative questions included on both the 2021 and current survey iterations, 78 were statistically similar to previous results. Upward trends were seen in 7 items, while 37 ratings decreased since 2021. The most significant of those trends are listed below.

Increases
§ Affordable high-speed internet access (+11%)
§ Opportunities to attend special events and festivals (+10%) § Openness and acceptance of the community toward people of diverse backgrounds (+9%) § Opportunities to attend cultural/arts/music activities (+7%) § Opportunities to participate in social events and activities (+7%) § Opportunities to volunteer (+6%)
Decreases
§ Stormwater management (storm drainage, dams, levees, etc.) (-38%) § Water resources (beaches, lakes, ponds, riverways, etc.) (-36%) § Overall quality of the utility infrastructure (water, sewer, storm water, electric/gas, broadband) (-27%) § Sewer services (-20%)
§ Power utility (-17%)
7 Attachment 1
City of Coronado Page 611
Excellent
69%
Good
27%
Fair
4%
The overall quality of life in Coronado, 2024
Quality of Life
Measuring community livability starts with
assessing the quality of life of those who live there,
and ensuring that the community is attractive,
accessible, and welcoming to all.
2018 2020 2022 2024
Coronado as a place to live
The overall quality of life
97% 98% 98%
Higher
97% 96% 96%
Much
higher
Please rate each of the following aspects of quality of life in Coronado. (% excellent or good)
2018 2020 2022 2024
Recommend living in Coronado to someone who
asks
Remain in Coronado for the next five years
92% 94% 89%
Similar
84% 86%
86%
Similar
Please indicate how likely or unlikely you are to do each of the following. (% very or somewhat likely)
2018 2020 2022 2024
Overall image or reputation
93% 94% 92%
Much
higher
Please rate each of the following in the Coronado community. (% excellent or good)

8. Comparison to the national benchmark is shown. If no comparison is available, this is left blank. vs. benchmark⁸
8 Attachment 1
City of Coronado Page 612
Excellent
24%
Good
47%
Fair
20%
Poor
9%
Overall confidence in Coronado government,
2024
Governance
Strong local governments produce results that
meet the needs of residents while making the best
use of available resources, and are responsive to
the present and future needs of the community as
a whole.
2018 2020 2022 2024
The value of services for the taxes paid to Coronado
The overall direction that Coronado is taking
The job Coronado government does at welcoming
resident involvement
Overall confidence in Coronado government
Generally acting in the best interest of the community
Being honest
76% 66%
75%
Higher
67%
55%
66%
Similar
70% 72%
74%
Higher
67% 73%
71%
Higher
75% 63%
73%
Higher
80% Higher
Please rate the following categories of Coronado government performance. (% excellent or good)
2018 2020 2022 2024
Public information services
Overall customer service by Coronado employees
83% 85%
79%
Higher
94% 86%
95%
Higher
Please rate the quality of each of the following services in Coronado. (% excellent or good)
vs. benchmark⁹
9 Attachment 1
City of Coronado Page 613

9. Comparison to the national benchmark is shown. If no comparison is available, this is left blank.

Generally acting in the best interest of the community
Being honest
Being open and transparent to the public
Informing residents about issues facing the
community
Treating all residents fairly
Treating residents with respect
69% 80% 72%
Higher
75% 67%
Higher
77% 72%
Higher
76% 65%
76%
Higher
82% 83%
Higher
2018 2020 2022 2024
The City of Coronado
The Federal Government
91% 90% 87%
Higher
46% 43% 37%
Similar
Overall, how would you rate the quality of the services provided by each of the following? (% excellent or good)
10 Attachment 1
City of Coronado Page 614
Excellent
42% Good
47%
Fair
10%
Overall economic health of Coronado, 2024
Economy
Local governments work together with private and
nonprofit businesses, and with the community at large, to foster sustainable growth, create jobs, and promote a
thriving local economy.
2018 2020 2022 2024
Coronado as a place to work
Coronado as a place to visit
76% 82%
76%
Higher
96% 97% 93%
Much
higher
Please rate each of the following aspects of quality of life in Coronado. (% excellent or good)
2018 2020 2022 2024
Overall quality of business and service
establishments
Variety of business and service establishments
Vibrancyof downtown/commercialarea
91%
66%
85%
Higher
75% 65%
Similar
Please rate each of the following in the Coronado community. (% excellent or good)
2018 2020 2022 2024
Economic development
75% 67%
Higher
Please rate the quality of each of the following services in Coronado. (% excellent or good)
2018 2020 2022 2024
Overall economic health
89% 93%
Much
89%
Please rate each of the following characteristics as they relate to Coronado as a whole. (% excellent or good)
11 higher
vs. benchmark¹¹
Attachment 1
City of Coronado Page 615
Variety of business and service establishments
Vibrancy of downtown/commercial area
Employment opportunities
Shopping opportunities
Cost of living
87%
70%
81%
Higher
42%
47%
Similar
53%
62% 54%
Similar
19% 17%
9%
Much
lower
2018 2020 2022 2024
What impact, if any, do you think the economy will
have on your family income in the next 6 months? Do
you think the impact will be:
40% 40%
27%
Similar
What impact, if any, do you think the economy will have on your family income in the next 6 months? Do you think the impact will be:
(% very or somewhat positive)

10. Comparison to the national benchmark is shown. If no comparison is available, this is left blank. 12 Attachment 1
City of Coronado Page 616
Excellent
43%
Good
35%
Fair
15%
Poor
7%
Overall quality of the transportation system in
Coronado, 2024
Mobility
The ease with which residents can move about
their communities, whether for commuting,
leisure, or recreation, plays a major role in the
quality of life for all who live, work, and play in
the community.
2018 2020 2022 2024
Traffic flow on major streets
Ease of public parking
Ease of travel by car
Ease of travel by public transportation
Ease of travel by bicycle
Ease of walking
35%
30% 39%
Similar
45%
24%
35%
Lower
57%
46%
55%
Similar
52%
59% 51%
Higher
80% 82%
86%
Much
higher
94% 95% 96%
Much
higher
Please also rate each of the following in the Coronado community. (% excellent or good)
Please indicate whether or not you have done each of the following in the last 12 months. 2018 2020 2022 2024
Overall quality of the transportation system
81% 78%
Much
higher
Please rate each of the following characteristics as they relate to Coronado as a whole. (% excellent or good)
vs. benchmark¹¹
13 Attachment 1
City of Coronado Page 617
2018 2020 2022 2024
Used public transportation instead of driving
Carpooled with other adults or children instead of
driving alone
Walked or biked instead of driving
31% 26%
42%
Much
higher
50%
48%
50%
Similar
87% 91% 86%
Much
higher
Please indicate whether or not you have done each of the following in the last 12 months. (% yes)
2018 2020 2022 2024
Traffic enforcement
Traffic signal timing
Street repair
Street cleaning
Street lighting
Sidewalk maintenance
Bus or transit services
70% 57%
67%
Similar
52%
64% 55%
Similar
65% 77% 65%
Higher
87% 76%
82%
Higher
69% 60%
67%
Similar
68% 80%
72%
Higher
71% 75%
72%
Much
higher
Please rate the quality of each of the following services in Coronado. (% excellent or good)

11. Comparison to the national benchmark is shown. If no comparison is available, this is left blank. 14 Attachment 1
City of Coronado Page 618
Excellent
38%
Good
48%
Fair
12%
Poor
2%
Overall design or layout of Coronado's residential
and commercial areas, 2024
Community Design
A well-designed community enhances the
quality of life for its residents by
encouraging smart land use and zoning,
ensuring that affordable housing is
accessible to all, and providing access to
parks and other green spaces.
2018 2020 2022 2024
Well-planned residential growth
Well-planned commercial growth
Well-designed neighborhoods
Preservation of the historical or cultural character of thit
50% 53%
Similar
52%
58%
Higher
79% 76%
Higher
Please also rate each of the following in the Coronado community. (% excellent or good)
2018 2020 2022 2024
Your neighborhood as a place to live
95% 95% 96%
Higher
Please rate each of the following aspects of quality of life in Coronado. (% excellent or good)
2018 2020 2022 2024
Overall design or layout of residential and
commercial areas
85% 77%
86%
Higher
Please rate each of the following characteristics as they relate to Coronado as a whole. (% excellent or good)
vs. benchmark¹²
15 Attachment 1
City of Coronado Page 619

12. Comparison to the national benchmark is shown. If no comparison is available, this is left blank.

Well-designed neighborhoods
Preservation of the historical or cultural character of the community
Public places where people want to spend time
Variety of housing options
Availability of affordable quality housing
Overall quality of new development
Overall appearance
78% 82%
Higher
91% 90%
86%
Much
higher
40% 41%
Similar
11% 17% 11%
Lower
49%
58% 52%
Similar
96% 95% 94%
Much
higher
2018 2020 2022 2024
Land use, planning and zoning
Code enforcement
52% 57%
60%
Higher
72%
58%
67%
Higher
Please rate the quality of each of the following services in Coronado. (% excellent or good)
16 Attachment 1
City of Coronado Page 620
Excellent
12%
Good
39%
Fair
35%
Poor
15%
Overall quality of the utility infrastructure in
Coronado, 2024
Utilities
Services such as water, gas, electricity, and
internet access play a vital role in ensuring the
physical and economic health and well-being
of the communities they serve.

13. Comparison to the national benchmark is shown. If no comparison is available, this is left blank. 2018 2020 2022 2024
Affordable high-speed internet access
Garbage collection
Drinking water
Sewer services
Storm water management
Power (electric and/or gas) utility
Utility billing
58%
69%
Higher
93% 94% 93%
Higher
66% 79% 66%
Similar
82% 87% 67%
Similar
64%
71%
33%
Much
lower
91% 75%
Similar
79% 63%
Similar
Please rate the quality of each of the following services in Coronado. (% excellent or good)
2018 2020 2022 2024
Overall quality of the utility infrastructure
77% 50%
Similar
Please rate each of the following characteristics as they relate to Coronado as a whole. (% excellent or good)
vs. benchmark¹³

13. Comparison to the national benchmark is shown. If no comparison is available, this is left blank. 17 Attachment 1
City of Coronado Page 621
Excellent
60%
Good
35%
Fair
5% Poor
1%
Overall feeling of safety in Coronado, 2024
Safety
Public safety is often the most important task
facing local governments. All residents should
feel safe and secure in their neighborhoods
and in the greater community, and providing
robust safety-related services is essential to
residents' quality of life.
2018 2020 2022 2024
Overall feeling of safety
97% 97% 95%
Higher
Please rate each of the following characteristics as they relate to Coronado as a whole. (% excellent or good)
2018 2020 2022 2024
In your neighborhood during the day
In Coronado's downtown/commercial area during the
day
From property crime
From violent crime
From fire, flood, or other natural disaster
96% 98% 99%
Similar
97% 98% 98%
Higher
84% 89%
Higher
95% 97%
Higher
90% 75%
Similar
Please rate how safe or unsafe you feel:
(% very or somewhat safe)
Please rate the quality of each of the following services in Coronado. (%excellentorgood)
vs. benchmark¹⁴
18 Attachment 1
City of Coronado Page 622
2018 2020 2022 2024
Police/Sheriff services
Crime prevention
Animal control
Ambulance or emergency medical services
Fire services
Fire prevention and education
Emergency preparedness
87% 92%
88%
Higher
85% 91%
88%
Higher
92%
76%
87%
Higher
96% 98% 97%
Higher
98% 99% 98%
Higher
84% 87%
91%
Higher
64%
75% 63%
Similar
Please rate the quality of each of the following services in Coronado. (% excellent or good)

14. Comparison to the national benchmark is shown. If no comparison is available, this is left blank. 19 Attachment 1
City of Coronado Page 623
Excellent
Good 45%
41%
Fair
10%
Poor
5%
Overall quality of natural environment in
Coronado, 2024
Natural Environment
The natural environment plays a vital role in the health and well-being of residents. The natural spaces in which residents live and experience their communities has a
direct and profound effect on quality of life.
2018 2020 2022 2024
Cleanliness
Water resources
Air quality
95% 94%
93% 57%
Similar
87% 89% 77%
Similar
Please also rate each of the following in the Coronado community. (% excellent or good)
2018 2020 2022 2024
Preservation of natural areas
Coronado open space
Recycling
Yard waste pick-up
79% 78%
Higher
69% 77%
78%
Higher
91% 88% 80%
Higher
89% 90% 89%
Higher
Please rate the quality of each of the following services in Coronado. (% excellent or good)
2018 2020 2022 2024
Overall quality of natural environment 91% 91% 85%
Similar
Please rate each of the following characteristics as they relate to Coronado as a whole. (% excellent or good)

15. Comparison to the national benchmark is shown. If no comparison is available, this is left blank. vs. benchmark¹⁵
20 Attachment 1
City of Coronado Page 624
Excellent
58%
Good
34%
Fair
8%
Poor
1%
Overall quality of parks and recreation
opportunities, 2024
Parks and Recreation
"There are no communities that pride themselves on
their quality of life, promote themselves as a
desirable location for businesses to relocate, or
maintain that they are environmental stewards of
their natural resources, without such communities
having a robust, active system of parks and
recreation programs for public use and enjoyment."
- National Recreation and Park Association
2018 2020 2022 2024
Availability of paths and walking trails
Fitness opportunities
Recreational opportunities
87% 88%
Higher
81% 88% 86%
Higher
87% 91% 91%
Higher
Please also rate each of the following in the Coronado community. (% excellent or good)
2018 2020 2022 2024
City parks
Recreation programs or classes
Recreation centers or facilities
96% 96% 91%
Higher
90% 92% 90%
Higher
92% 93% 88%
Much
higher
Please rate the quality of each of the following services in Coronado. (% excellent or good)
2018 2020 2022 2024
Overall quality of parks and recreation opportunities
95% 92%
Higher
Please rate each of the following characteristics as they relate to Coronado as a whole. (% excellent or good)

16. Comparison to the national benchmark is shown. If no comparison is available, this is left blank. vs. benchmark¹⁶
21 Attachment 1
City of Coronado Page 625
Excellent
Good 49%
38%
Fair
10%
Poor
2%
Overall health and wellness opportunities in
Coronado, 2024
Health and Wellness
The characteristics of and amenities available
in the communities in which people live has a
direct impact on the health and wellness of
residents, and thus, on their quality of life
overall.
2018 2020 2022 2024
Availability of affordable quality food
Availability of affordable quality health care
Availability of preventive health services
Availability of affordable quality mental health care
68% 56%
Similar
79%
62%
72%
Similar
76% 72%
Similar
49%
54% 45%
Similar
Please also rate each of the following in the Coronado community. (% excellent or good)
2018 2020 2022 2024
Health services
89% 85%
Higher
Please rate the quality of each of the following services in Coronado. (% excellent or good)
2018 2020 2022 2024
Please rate your overall health. 81% 88% 87%
Higher
Please rate your overall health.
(% excellent or very good)
2018 2020 2022 2024
Overall health and wellness opportunities 83% 93% 88%
Higher
Please rate each of the following characteristics as they relate to Coronado as a whole. (% excellent or good)

17. Comparison to the national benchmark is shown. If no comparison is available, this is left blank. vs. benchmark¹⁷

17. Comparison to the national benchmark is shown. If no comparison is available, this is left blank. 22 Attachment 1
City of Coronado Page 626
Excellent
45%
Good
40%
Fair
13%
Poor
1%
Overall opportunities for education,
culture and the arts, 2024
Education, Arts, and Culture
Participation in the arts, in educational opportunities, and in cultural activities is linked to increased civic
engagement, greater social tolerance, and enhanced
enjoyment of the local community.
2018 2020 2022 2024
Opportunities to attend cultural/arts/music activities
Community support for the arts
Availability of affordable quality childcare/preschool
K-12 education
Adult educational opportunities
Opportunities to attend special events and festivals
80% 79%
86%
Much
higher
86% 90%
Much
higher
65%
61%
63%
Higher
89% 88%
80%
Higher
77% 77%
75%
Higher
82% 83%
93%
Higher
Please also rate each of the following in the Coronado community. (% excellent or good)
2018 2020 2022 2024
Overall opportunities for education, culture, and
the arts
85% 88% 86%
Much
higher
Please rate each of the following characteristics as they relate to Coronado as a whole. (% excellent or good)
vs. benchmark¹⁸
23 Attachment 1
City of Coronado Page 627
Opportunities to attend special events and festivals
2018 2020 2022 2024
Public library services
95% 96% 95%
Higher
Please rate the quality of each of the following services in Coronado. (% excellent or good)

18. Comparison to the national benchmark is shown. If no comparison is available, this is left blank. 24 Attachment 1
City of Coronado Page 628
Excellent
42%
Good
43%
Fair
13%
Poor
2%
Residents' connection and engagement with
their community, 2024
Inclusivity and Engagement
Inclusivity refers to a cultural and environmental
feeling of belonging; residents who feel invited to
participate within their communities feel more
included, involved, and engaged than those who do
not.
2018 2020 2022 2024
Coronado as a place to raise children
Coronado as a place to retire
Sense of community
92% 97% 92%
Higher
82% 88%
86%
Much
higher
84% 85%
86%
Higher
Please rate each of the following aspects of quality of life in Coronado. (% excellent or good)
2018 2020 2022 2024
Residents' connection and engagement with
their community
83% 86%
Much
higher
Please rate each of the following characteristics as they relate to Coronado as a whole. (% excellent or good)
Please rate the job you feel the Coronado community does at each of the following. (% excellent or good)
vs. benchmark¹⁹
25 Attachment 1
City of Coronado Page 629
2018 2020 2022 2024
Making all residents feel welcome
Attracting people from diverse backgrounds
Valuing/respecting residents from diverse
backgrounds
Taking care of vulnerable residents
82% 84%
Higher
52% 54%
Similar
65%
69%
Similar
77% 65%
Higher
Please rate the job you feel the Coronado community does at each of the following. (% excellent or good)
2018 2020 2022 2024
Sense of civic/community pride
Neighborliness of residents
Opportunities to participate in social events and
activities
Opportunities to volunteer
Opportunities to participate in community matters
Openness and acceptance of the community toward
people of diverse backgrounds
90% 89%
Much
higher
73% 78%
77%
Higher
82% 83%
90%
Much
higher
80% 83%
89%
Higher
84% 82%
83%
Higher
56% 59%
68%
Similar
Please also rate each of the following in the Coronado community. (% excellent or good)

19. Comparison to the national benchmark is shown. If no comparison is available, this is left blank. 26 Attachment 1
City of Coronado Page 630
Residents' Participation Levels
2018 2020 2022 2024
Attended a local public meeting
Watched a local public meeting
Campaigned or advocated for a local
issue, cause, or candidate
33% 29%
38%
Higher
37%
29%
35%
Higher
30%
28%
30%
Higher
Please indicate whether or not you have done each of the following in the last 12 months. (% yes)
2018 2020 2022 2024
Access the internet from your home
Access the internet from your cell phone
Visit social media sites
Use or check email
Share your opinions online
Shop online
99% 96%
Similar
95% 96%
Similar
74% 77%
Similar
99% 99%
Similar
29%
27%
Similar
69% 56%
Similar
In general, how many times do you:
(% a few times a week or more)

20. Comparison to the national benchmark is shown. If no comparison is available, this is left blank. vs. benchmark²⁰
27 Attachment 1
City of Coronado Page 631
Open-ended questions
City included one open-ended questions on their survey. The verbatim responses were categorized by topic area and those topics are reported below with the percent of responses given in each category. Because some comments from residents covered more than a single topic, those verbatim responses are grouped by the first topic listed in each comment.

Resolve ocean sewage issue/Preserve natural
environment
Manage traffic/Limit traffic noise
Government and community engagement
Improved safety/code enforcement
Improve affordable housing/Address cost of living
Manage growth
Address E-Bikes/bike safety
Improved parking/access to public transportation
Sidewalk, road, and utility improvements
Additional/expanded resident amenities and recreational opportunities
Other
Nothing
Don't know 0%
N = 0
2%
N = 10
3%
N = 12
5%
N = 19
5%
N = 20
5%
N = 21
6%
N = 25
7%
N = 28
7%
N = 29
9%
N = 37
10%
N = 39
15%
N = 60
26%
N = 107
What is the single most important thing the City of Coronado could do to improve your quality of life?
Attachment 1
City of Coronado Page 632

CITY COUNCIL STAFF REPORT
July 16, 2024 10c

CROSS BORDER WATER QUALITY QUARTERLY UPDATE
RECOMMENDATION:

Receive a quarterly report on Cross Border Water Quality and provide direction, as appropriate, to staff regarding the City’s advocacy efforts.

BACKGROUND:

The City of Tijuana’s regional wastewater infrastructure is decades old, has inadequate capacity to treat and convey wastewater and suffers from repeated breaks and system failures. These failures lead to spillage and wastewater discharge into the Tijuana River, its tributaries and outfall into the Pacific Ocean, polluting the ocean waters off Imperial Beach, Coronado and beyond. The City of Coronado has been tirelessly advocating for wastewater treatment solutions since 2016, along with other regional partners.

The City Council Ad Hoc Committee on Cross Border Water Quality was authorized by the City Council on April 2, 2023 and reauthorized on February 6, 2024. The Subcommittee members include Mayor Bailey and Councilmember Duncan with support from City Manager Friend, Assistant City Manager Winney and Andre Monette with BBK, the City’s federal advocate.

The Ad Hoc Committee meets at least monthly to coordinate advocacy efforts on the local, state and federal level. The Ad Hoc Committee developed a work plan to focus advocacy efforts and ensure the involvement of the broad spectrum of partners in long-term solutions to the crossborder water pollution. Major efforts of the Ad Hoc Committee include:
• Conducting ongoing meetings with Coronado’s Federal delegation to urge expedited construction of the current suite of $530 million of improvements and to appropriate future Federal funding to complete the remaining improvements on both sides of the border (~$450 million);
• Encouraging federal authorities to ensure the Mexican government fulfills its commitment to build its projects (particularly the SAB Treatment Plant rehabilitation) with its pledged $144 million;
• Advocating for consistent and ongoing funding of the EPA Border Water Infrastructure Grant Program (BWIP) for maintenance and operations for the IBWC treatment plant and pollution prevention infrastructure at the border;
• Expanding coordination with local jurisdictions and the state for a cohesive advocacy and information sharing.

In addition, Councilmember Downey was appointed to the National League of Cities Energy, Environment and Natural Resources Committee which is responsible for developing policy and advocating on infrastructure and sustainability-related issues such as water infrastructure and water quality, air quality, energy, climate, and solid/hazardous waste management. This includes advocacy for the elimination of cross border water pollution from the Tijuana River Valley.

U.S. EPA / IBWC and Mexico Wastewater Infrastructure Projects To provide international cooperation and funding, the United States and Mexico signed Minute City of Coronado Page 633
Order 328 in July 2022, a binational agreement committing to implementation of projects to reduce and eliminate cross-border pollution. Through this treaty, the Mexican government is contributing $144 million for improvements to canyon collectors and the San Antonio de los Buenos Wastewater Treatment Plant (SAB Treatment Plant) in Mexico.

In 2022, the total costs for the infrastructure improvements were estimated at $640 million but costs have subsequently increased to $1 billion due to deferred maintenance at the IBWC treatment plant estimated at $150 million. Advocacy to overcome this funding set-back immediately commenced and continues to be a major feature of the City’s current efforts.

For the U.S., infrastructure projects are managed by the Environmental Protection Agency (EPA) and the International Boundary and Water Commission (IBWC), which operates the International Treatment Plant and the collection systems on the U.S. side of the border. To date, approximately $530 million in funding has been allocated to accomplish the following infrastructure improvements to address cross border wastewater collection and treatment:
• Expanding the capacity of the existing International Treatment Plant from 25 million gallons per day (mgd) to 50 mgd;
• Installing trash booms in the Tijuana River on the U.S. side of the border; and • Additional repairs to the wastewater canyon collection system.

With appropriate funding, the combined projects (including Mexico’s improvements) are expected to be completed and operational by the end of 2027 and would result in a 90% reduction in the number of days of transboundary wastewater flow in the Tijuana River and an 80% reduction in untreated wastewater discharged to the Pacific Ocean six miles south of the border.

ANALYSIS:

This report provides an update on Subcommittee activities and progress over the past quarter from March 2024 through May 2024.

Status of Infrastructure Projects and Funding
On March 23, 2024, President Biden signed a Fiscal Year 2024 appropriations bill that will inject $200 million to the International Boundary and Water Commission’s budget, including $156 million for water quality construction projects. The funding is a $103 million increase from the previous fiscal year and will facilitate repair and expansion of the International Treatment Plant. The bill also included a funds transfer authority to enable IBWC to receive funds from other federal and non-federal agencies, enabling them to find other funding streams to support the critically needed improvements to the South Bay International Wastewater Treatment Plant (SBIWTP).

Advocacy conducted by the City Council, San Diego regional partners and others was critical in the March 2024 approval of $200 million in additional infrastructure funding by Congress. The CIty is particularly thankful for the work of our local Federal congressional delegation to move this funding legislation forward, including Congressmember Scott Peters and Senators Butler and Padilla.

In May 2024, Congressmember Peters submitted a new legislative request to increase construction funds for the IBWC as part of the Fiscal Year 2025 State, Foreign Operations, and Related Programs Appropriations Bill. The proposed $200 million in construction funding would be allocated to the IBWC’s rehabilitation and expansion of the SBIWTP. As this bill makes its way through the budget process, it will present another opportunity to advocate for funding with our elected representatives in Washington D.C. this fall.

City of Coronado Page 634
The IBWC continues repairs to the SBIWTP due to excess flows into the plant from Mexico and solids overloading the primary treatment system. Three primary sedimentation tanks are scheduled to return to operation in July and will be sufficient to regain permit compliance.

The Mexican pump station PBCILA was also brought back online on May 24, 2024 with one pump now in operation. Mexico also remains committed to complete repairs to the SAB Treatment Plant by September 2024, which is projected to significantly reduce the impacts from southern swells in Coronado.

The IBWC also maintains plans to award the design-build agreement for the SBIWTP Expansion Project this summer, with estimated project completion in 2027.

IBWC Citizen’s Forum
Councilmember John Duncan currently serves on the IBWC Citizen’s Advisory Board Forum. The IBWC Citizens Forum (CF) was established in 2002 to facilitate the exchange of information between the IBWC and members of the public, government agencies, and other interested stakeholders. Councilmember Duncan has advocated for the interests of all South Bay cities, including Coronado, as a member of Citizen’s Forum.

The CF meets quarterly; however, no meetings took place in the second quarter 2024. Coronado will serve as host to the next two Citizen’s Advisory Board Forum meetings, scheduled for July 10 and November 13. At the July 10th meeting, the CF heard updates on IBWC activities in the San Diego Region and current efforts at dredging and berm repair in the Tijuana River Valley by the County and City of San Diego. Copies of the presentations provided at each meeting can be found on their website at https://www.ibwc.gov.

Next Steps
IBWC has a number of internal assessments taking place to develop a more refined schedule for implementation of infrastructure improvements and future funding needs. The Subcommittee will continue their advocacy work to ensure support of necessary funding for additional wastewater infrastructure improvement projects and to advocate for expeditious completion of the projects, including those in Mexico. This will include determining the most advantageous time to conduct future advocacy meetings with representatives in Washington D.C.

Updates will continue to be posted on the Cross Border Water Pollution project website at:
https://www.projectcoronado.org/cross-border-water-pollution.

FISCAL IMPACT:

None.

ALTERNATIVE:

The City Council could direct staff to pursue alternate direction on cross border water pollution efforts.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

Not Applicable.

PUBLIC NOTICE:

No notice required.

ATTACHMENTS:

City of Coronado Page 635
None.

Submitted By: City Manager's Office / Tony Winney
City of Coronado Page 636

CITY COUNCIL STAFF REPORT
July 16, 2024 10d

LONG-TERM CAPITAL PROJECT FUNDING AND EXPENDITURE STRATEGY FOR

COMMUNITY DEVELOPMENT AGENCY LOAN FUNDS
RECOMMENDATION:

Receive a report and recommendations on the Community Development Agency Bond Funds expenditure strategy and planning for long-term capital project funding, and provide direction as appropriate.

BACKGROUND:

At the City Council’s May 7 and May 21, 2024 meetings, staff presented information regarding the City’s portfolio of long-term capital projects, their proposed phasing and cost estimates. The City Council also discussed the timing to spend down the proceeds from the Community Development Agency (CDA) Bond proceeds. Staff were asked to return to a later meeting with strategies.

This report provides a full discussion of the history and recommendations to deplete the CDA proceeds in a timely manner and the next steps in long-term capital planning, including new planning processes and strategy development.

ANALYSIS:

CDA (Community Development Agency) Loan Fund
The Community Development Agency (CDA) Loan Fund was established for the repayment of loans that were made to the CDA from the General Fund. This fund received annual loan repayments of $2,780,754 and in October 2018, the City refinanced the balance of the loans with bonds and transferred the proceeds of $32,686,488 to the CDA Fund. At the time of the bond issuance the City Council established an exclusive list of capital projects, for which bond proceeds could be used. Attached is the August 2018 staff report describing the bond process and authorized list of eligible projects (Attachment 1). The CDA Fund must be fully spent down by bond maturity, estimated for September 2027.

Currently, the balance of CDA bond funds is $18,354,153, including $9.3 million reserved to fund improvements related to the relinquishment of SR-75 and -282, and estimated Fund investment earnings of $3,419,714.

To date, $17,752,049 in CDA funds have been expended or allocated for:
• Utility undergrounding design: (1) Adella and Ynez; (2) First Street; and (3) Silver Strand (cumulative: $400,000)
• Utility undergrounding construction Adella and Ynez ($2,000,000) • Parker Pump Station construction ($12,363,196)
• FY 2024/25 Vehicle and Equipment Replacement purchases ($2,988,853) To develop options for the full use of the Fund balance, staff analyzed the City’s current capital City of Coronado Page 637
project list. Other projects/concepts on the bond-eligible list were not deemed likely to be completed by September 2027. Attachment 2 shows an assessment of CDA Fund eligibility, cost and completion horizon for the City’s current capital improvement projects. This analysis showed that five CIP projects totaling over $22.3 million are eligible for CDA funding and can be completed prior to the deadline for expenditure.

Recommendations
Staff proposes three actions for the most efficient draw down of the CDA Fund:

1. Restore $9.3 million transferred to Fund 275 SR-75/282 Highway Relinquishment Fund to the CDA Fund. Since the Relinquishment project has no definite completion horizon, these funds would be reprogrammed for immediate expenditure for eligible projects.

2. Allocate $14.3 million for the Parker Pump Station. In FY 2021/22 and 2022/23 a total of $14.3 million was transferred from Fund 436 (Major Facilities Replacement Fund) to Fund 510 (Wastewater Fund) for the Parker Pump Station. This proposed allocation would assign $14.3 million to the CDA Fund and restore $14.3 million to Fund 436, which is used for general facility improvements across the City. The Parker Pump Station is a critical infrastructure project which has experienced substantial cost escalation since the initial estimates. Restoring $14.3 million to Fund 436 would increase that fund balance from $18.5 million to $32.8 million.

3. Plan for $4,560,421 for FY 2024/25 - 2026/27 Vehicle and Equipment Purchases or Project Overages. Annually, the City has a need for $1-3 million in vehicle and equipment replacement. In particular, the City is scheduled to replace higher-cost fire apparatus in the next few years, including an engine and truck. Use of CDA Funds for this purpose would buffer the one-time budget impact of these $1-3 million acquisitions. This balance can also be used for cost overages for eligible projects under construction.

Attachment 2 includes other projects that meet eligibility criteria and can be completed in a timely manner. Another valid strategy would be to allocate CDA funds to those projects and reduce the amounts to the Vehicle and Equipment Replacement.

Attachment 3 provides a CDA Fund summary showing the effect of the recommended changes.

Long-Term Capital Project Planning
On May 7, 2024 as part of the FY 2024-25 Budget discussion, staff presented City Council with an overview of long-term capital projects and a tentative timeline for their completion. This was prepared in anticipation of larger projects on the horizon that extend beyond the usual five-year planning period.

On the following page is a sequenced list of major projects valued at $3 million or more and currently on the horizon within the next ten years.

A project phasing chart has been updated to reflect a potential phased approach to future Cays Park projects, and includes more detailed project timelines, as Attachment 4.

City of Coronado Page 638
Assumes upper estimates for Winn Room and Animal Care Facility This table shows a first sequence of projects including Downtown Beautification, Golf Course Irrigation and Gateway Improvements. All are underway in planning or design and only the Downtown Beautification uses the General Fund.

Sequences 2 and 3 contain the next sets of projects. These projects are in the early stages of planning and scope definition. Design is not expected to begin for most projects until at least 12 to 18 months from the present. Construction is anticipated to be staggered over the next three to eight years.

There are numerous process steps before each project matures to construction. Decisions about scope, features, design elements, bidding, and construction award will be presented to the City Council at the appropriate time. Also imbedded in these conversations will be funding strategies.

Project Funding Considerations
With the potential for tens of millions in projects and facilities investments over the next decade, the City is taking care to analyze existing resources and demands and will craft funding plans simultaneous to project development.

The City has a number of existing funding resources to help fund long term capital projects as summarized below:
• Facilities Replacement Fund (Fund 436)
In 2015, the City established a Facilities Replacement Fund (Fund 436) to provide a reserve for the normal repair and renovation of most of the City’s capital facilities across their lifecycle for the next 60 years. The Facilities Replacement Fund balance stands at $18.5 million, which may escalate to $32.8 million if CDA Funds are allocated to the Parker Pump Station.

The City makes designated annual General Fund contributions to Fund 436 using an index-based formula that uses the prior year’s budget base value and multiplies it by the San Diego area Construction Cost Index (CCI). The annual Fund 436 formula will be recalibrated this year to account for the new estimation of facility needs and the current cost of construction.

Priority Project
($3 million+)
Total Estimated
Cost General Fund Funding Source
Estimated
Project Design
Begins
Estimated
Construction
Completion
Sequence 1
Downtown Beautification Project 3,400,000 2,650,000 General Fund/TransNet FY 2024/25 FY 2025/26 Golf Course Irrigation Replacement 9,000,000 N/A Golf Course FY 2024/25 FY 2027/28 Coronado Gateway Improvements 5,300,000 N/A Coronado Bridge Tolls FY 2024/25 FY 2027/28 Sequence 2
Fire Station #36 (Main) 30,000,000 30,000,000 General Fund FY 2025/26 FY 2029/30 Winn Room Renovation 9,700,000 9,700,000 General Fund FY 2025/26 FY 2028/29 AnimalCare Facility $1-3 million $1-3 million General Fund FY 2025/26 FY 2027/28 Sequence 3
Fire Station #37 (Cays) 30,000,000 30,000,000 General Fund FY 2025/26 FY 2029/30 Cays Park Rehabilitation (Phase 1) 10,500,000 10,500,000 General Fund FY 2025/26 FY 2029/30 Cays Park Rehabilitation (Phase 2) 8,500,000 8,500,000 General Fund FY 2025/26 FY 2030/31 Cays Park Rehabilitation (Phase 3) 12,100,000 12,100,000 General Fund FY 2025/26 FY 2031/32 Total $ 121,500,000 $106,450,000
City of Coronado Page 639
In the future, the City Council may wish to consider shifting any annual budget surpluses to Fund 436 to continue to grow these savings for project investments. Staff will present this as a strategy after the closure of surplus budget years.
• Harpst Fund
In 2010, local philanthropist and Coronado resident Frances Harpst made a generous donation to the City of Coronado from her estate. The remaining balance in the Harpst Donation Fund stands at $1 million (estimated by June 30, 2025) and is available for broad use. • General Fund Reserves
The City has a robust General Fund Reserve policy that sets aside 6 months of operating expenditures. With past prudent budgeting, the Reserve has attained a funding status of 226% this fiscal year, exceeding the minimum reserve by about $45 million. This includes $4 million set aside by the City Council for future capital projects. The City Council may consider some use of Reserves to support these one-time projects.

Other Revenue/Funding Strategies include:
• Fee Studies
The City receives some revenues to support select public facilities from use fees. Fees must comply with Section 66000 et seq. of the Government Code, which states fees must be related to the level of service provided by the local jurisdiction and the portion of the public facility attributable to the development on which the fees are levied. While not a primary source, revenues from user fees can be available to augment select capital projects. Facility maintenance/replacement costs must be fairly and accurately accounted for in the development of fees. • Grants & Federal and State Funding
The City will pursue grants more assertively in the coming year. The City will also continue its requests for project funding through Federal and State awards. The City has had recent success in both, receiving grants for the Parker Pump Station (Federal) and Library enhancements (State). • General Obligation (GO) Bonds or Other Financing
Another potential option to explore is the issuance of general obligation bonds backed by tax revenues to pay debt service or other financing vehicles. The City has not preferred financing in the past, but this mechanism is worthy of investigation if the City wishes to advance larger scale projects more quickly than a pay-as-you-go approach. If initiated, a thorough analysis of these options will be conducted in partnership with a financial advisor experienced in working with city clients on financial planning, capital investments, and bond issuance support and would consider the interest rate environment and cost of borrowing.
• Tax Change Options
A change to Transient Occupancy Tax (TOT), sales tax, real estate transfer tax, or the introduction of a utility users tax are options explored by cities to raise revenue for a variety of purposes.

City of Coronado Page 640
Next Steps
FY 2024/25 is predominantly a planning year. Aside from the three projects in design (Golf Course Irrigation, Gateway Improvements and Downtown Beautification), the other long-term projects are under scoping and planning which will take at least a year before shifting to design.

Primary capital planning activities for FY 2024/25 are:

1. Community Risk Assessment to Support Future Fire Station Design The City has a need to rehabilitate or replace its 50-year-old fire stations. As a preparatory step, this year the City will obtain consultant services to conduct a citywide assessment of our projected fire and emergency medical needs. Understanding our geography, demographics, circulation and building attributes will inform community service needs—and the infrastructure and apparatus required to support them.

Staff are preparing a solicitation for these consultant services and expect to return with a report to the City Council in about one year.

2. Grant Engagement
The City lacks the internal resources to actively identify and apply for grant funding—or financing programs that may be available through the State or Federal government. In the FY 2024/25 Budget, the City Council approved funding for a grant consultant to locate grant or funding program opportunities, prepare applications and provide advice on strategy to better position the City for external resources to support priority capital projects.

A request for qualifications will be released this summer to secure a grants consultant.

3. Public Facilities Assessment and Allocation Strategy (Fund 436) In 2018, the City commissioned a facility assessment study to evaluate the condition of City facilities and project anticipated maintenance and replacement costs over time. The study calculated an annual amount the City should save in anticipation of these future facility costs. This year, the study will be updated to encompass the full range of City facilities and with contemporary construction costs. A new annual funding formula will be calculated.

The City Council approved funding in the FY 2024/25 Budget for this study and consultant solicitation will proceed in late summer/early fall.

4. FY 2024/25 Project Planning
This year, staff will initiate scoping and planning for renovation of the Animal Care Facility. Other long-term projects such as the Winn Room, Cays Park and Fire Stations would commence planning and design next fiscal year.

5. Explore Financial Planning Consultants
Staff also will explore obtaining the services of a financial planning consultant who can assist in strategic development for larger cost investments.

City of Coronado Page 641
FISCAL IMPACT:

There is no fiscal impact associated with this report.

ALTERNATIVE:

None.

CALIFORNIA ENVIRONMENTAL QUALITY ACT:

Not Applicable.

PUBLIC NOTICE:

No notice required.

ATTACHMENTS:

1. August 21, 2018 Agenda Report Establishing Bond Proceeds Project Allocations

2. CDA Loan Fund - Project Eligibility List

3. CDA Loan Fund Sources and Uses Summary

4. Long Term Capital Planning List
Submitted By: City Manager’s Office / Tina Friend and Tony Winney; Administrative Services / John Kim; Public Services and Engineering / Leon Firsht
City of Coronado Page 642
08/21/18

ADOPTION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CORONADO DECLARING ITS INTENTION TO REIMBURSE CERTAIN COSTS AND

EXPENSES INCURRED IN CONNECTION WITH VARIOUS CAPITAL PROJECTS PRIOR TO THE ISSUANCE OF THE 2018 TAX ALLOCATION REFUNDING BONDS

BY THE SUCCESSOR AGENCY TO THE COMMUNITY DEVELOPMENT AGENCY

OF THE CITY OF CORONADO
RECOMMENDATION: Adopt “A Resolution of the City Council of the City of Coronado Declaring Its Intention to Reimburse Certain Costs and Expenses Incurred in Connection with Various Capital Projects Prior to the Issuance of the 2018 Tax Allocation Refunding Bonds by the Successor Agency to the Community Development Agency of the City of Coronado.” FISCAL IMPACT: On June 20, 2018, the Successor Agency to the Community Development Agency of the City of Coronado obtained approval from the Oversight Board to issue $145,000,000 in tax exempt tax allocation refunding bonds (“TARB”). A portion of the TARB ($32,753,000) will repay the City its share of bond proceeds (“City Share of Proceeds”) which is the remaining balance of the loans made from the City to the Successor Agency. The City Share of Proceeds will be used to supplant other funds which would have otherwise been used as the funding source to pay for the projects as listed in Exhibit B. The tax exempt status of the interest on the City Share of Proceeds is contingent on the spending of proceeds on the projects as listed in Exhibit B along with the investment of the remaining balance of the City Share of Proceeds in municipal obligations the interest of which is excludable from federal taxation. The projects included in Exhibit B have been reviewed by Bond Tax Counsel and found to be in compliance with tax exemption requirements. Because the City desires to pay for and reimburse itself for a portion of the project costs ($1,000,000) prior to the issuance of the refunding bonds (up to 60-days prior to adoption of the resolution and up to the time the TARB is issued), the City must adopt a resolution stating the intention to reimburse itself from bond proceeds.

CITY COUNCIL AUTHORITY: Adoption of the Resolution of Intent is a legislative action.

Legislative actions tend to express a public purpose and make provisions for the ways and means of accomplishing the purpose. Legislative actions involve the exercise of discretion governed by considerations of public welfare, in which case, the City Council is deemed to have “paramount authority” in such decisions.

PUBLIC NOTICE: None required for this action.

CALIFORNIA ENVIRONMENTAL QUALITY ACT: This is not a project as defined by CEQA.

BACKGROUND: The sale of the Tax Allocation Refunding Bonds was previously approved by the Successor Agency to the Community Development Agency. The primary purpose of this resolution is to allow for the reimbursement from a non-taxable bond issue of capital project costs incurred before the issuance of tax exempt municipal bonds. Tax exempt bonds (bonds that provide income tax advantages to the holder) are typically issued at a lower interest cost than taxable bonds. In order to comply with Treasury Regulation § 1.150-2 of the Internal Revenue Service relating to the qualification for reimbursement from the bond proceeds, an inducement (reimbursement) resolution needs to be passed no later than 60 days after any eligible costs are incurred by the bond issuer. It is anticipated that there will be approximately $1,000,000 of costs incurred on the projects as listed in Exhibit B within the 60- day window designated under Treasury Regulations.
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ANALYSIS: The City Share of Proceeds from the issuance of the TARB will be used to supplant the funding which would otherwise be used for the projects listed in Exhibit B. Three examples of projects listed therein are as follows: 1) undergrounding of utilities; 2) The wastewater recycling plant to be located at the Golf Course; and 3) a public parking facility. The list of projects is restrictive and cannot be changed at a later date. It is anticipated and required (for Federal taxation purposes) that the City Share of Proceeds ($32,753,000) be depleted entirely by the time that the TARB are paid off (estimated to be FY 2027). Primarily, the purpose of this resolution is to approve reimbursement of project costs from bond proceeds which are being used to repay loans made by the City of Coronado to the Coronado Redevelopment Agency. This resolution will provide the opportunity for the City of Coronado to reimburse itself for expenditures made up to 60 days prior to the date of the resolution.

The City will have expended approximately $1,000,000 on qualified capital projects within the 60- day time period as prescribed within tax regulations.

ALTERNATIVE: To not approve the resolution and therefore not reimburse the City of Coronado for approximately $1,000,000 from TARB proceeds for capital project costs incurred within the last 60-days.

Submitted by Administrative Services/Krueger
Attachment: Resolution

CM ACM AS CA CC CD CE F L P PSE R/G

BK TR JK JNC MLC NA NA NA NA NA NA NA

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