Fiscal Year 2022/2023
ANNUAL
COMPREHENSIVE
FINANCIAL REPORT
CITY OF CORONADO, CALIFORNIA
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CITY OF CORONADO, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
WITH AUDIT REPORT BY
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
YEAR ENDED JUNE 30, 2023
PREPARED AND PRESENTED BY:
THE DEPARTMENT OF ADMINISTRATIVE SERVICES
John Kim, Director of Administrative Services
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Number
INTRODUCTORY SECTION
Letter of Transmittal ……………………………………………………………………………………………………i Organizational Chart ……………………………………………………………………………………………………v List of Elected and Appointed Officials …………………………………………………………………………………vi
FINANCIAL SECTION
Independent Auditor's Report ……………………………………………………………………………………………1 Management Discussion and Analysis of Basic Financial Statements (Required Supplementary Information) …………………………………………………………………………………5
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Position ……………………………………………………………………………………………19 Statement of Activities ………………………………………………………………………………………………20 Fund Financial Statements:
Balance Sheet - Governmental Funds ………………………………………………………………………………22 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position ……………………………………………………………………………………23 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds …………………………………………………………………………………………………24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities …………………………………. 25 Statement of Net Position - Proprietary Funds ………………………………………………………………………27 Statement of Revenues, Expenses and Changes in Fund Net Positions - Proprietary Funds ……………………………………………………………………………………………………28 Statement of Cash Flows - Proprietary Funds ………………………………………………………………………29 Statement of Fiduciary Net Position - Fiduciary Funds ………………………………………………………………31 Statement of Changes in Fiduciary Net Position - Fiduciary Funds …………………………………….. 32 Notes to the Financial Statements ……………………………………………………………………………………33
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule – General Fund ……………………………………………………………………91 Notes to Required Supplementary Information ………………………………………………………………………92
CITY OF CORONADO
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2023
TABLE OF CONTENTS
Attachment 1
FINANCIAL SECTION (CONTINUED)
Schedule of Changes in the Net Pension Liability and Related Ratios – Miscellaneous Plan ……………………………………………………………………………………………………94 Schedule of Plan Contributions – Miscellaneous Plan …………………………………………………………………96 Schedule of Proportionate Share of the Net Pension Liability – Safety Plan ……………………………… 97 Schedule of Plan Contributions – Safety Plan ……………………………………………..……………………. 98 Schedule of Changes in Net OPEB Liability and Related Ratios………………………………………….. 99 Schedule of OPEB Plan Contributions…………………………………………………………………..... 100
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet – Non-Major Governmental Funds ………………………………………………………106 Combining Statement of Revenues, Expenditures and Changes in - Fund Balances – Non-Major Governmental Funds ……………………………………………………………………110 Budgetary Comparison Schedules – Special Revenue Funds
Gas Tax ………………………………………………………………………………………………………………113
TransNet ………………………………………………………………………………………………………………114
Transportation Development …................................................................................................................. 115 Federal & State Grants………………………………………………………………………………….. 116 Public Safety …………………………………………………………………………………………………………117 Library ………………………………………………………………………………………………………………118
Community Development Block Grant ………………………………………………………………………………119 Affordable Housing …………………………………………………………………………………………………120 Affordable Housing in Lieu…………………………………………………………………………………………121 Coronado Tidelands …………………………………………………………………………………………………122 Budgetary Comparison Schedule – Capital Projects Fund …………………………………………………………… 123
STATISTICAL SECTION
Statistical Section ………………………………………………………………………………………………………127 Net Position by Component Last Ten Fiscal Years ……………………………………………………………………128 Changes in Net Position Last Ten Fiscal Years ............................................................................................... 130 Governmental Activities Tax Revenues by Source Last Ten Fiscal Years ..................................................................135 Fund Balances of Governmental Funds Last Ten Fiscal Years ...................................................................... 136 Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years .................................................... 138 Assessed Value of Taxable Property Last Ten Fiscal Years ....................................................................... 140 Property Tax Rates – Direct and Overlapping Governments (Per $100 of Assessed Value) Last Ten Fiscal Years …………………………………………………………………142 Principal Property Taxpayers Based on Gross Assessed Values Current Year and Nine Years Ago ................................................................................................................................143 Attachment 1
STATISTICAL SECTION (CONTINUED)
General Property Tax Levies and Collections Last Ten Fiscal Years ................................................................. 144 Schedule of Debt Ratios Last Ten Fiscal Years ...........................................................................145 Schedule of Direct and Overlapping Debt, June 30, 2023 ....................................................................... 146 Schedule of Legal Debt Margin, June 30, 2023 ...................................................................................... 147 Pledged Revenue Coverage Storm Drain Revenue Bonds
Last Ten Fiscal Years ........................................................................................................................................... 148 Demographic and Economic Statistics Last Ten Fiscal Years ......................................................................... 149 Principal Employers by Employee Size June 30, 2023 and June 30, 2014 ..................................................................150 Full – Time and Part – Time City Employees Last Ten Fiscal Years .......................................................... 151 Operating Indicators by Function Last Ten Fiscal Years ............................................................................... 152 Capital Asset Statistics by Function Last Ten Fiscal Years ……………………………………………………………154 Attachment 1
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July 5, 2024
To the Honorable Mayor, Councilmembers, and Citizens of the City of Coronado:
I am pleased to submit the Annual Comprehensive Financial Report (ACFR) of the City of Coronado for the fiscal year ended June 30, 2023.
This report consists of City management staff’s representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of information presented in this report. To provide a reasonable basis for making these representations, the City’s management has established a comprehensive internal control framework designed to protect the City’s assets and to compile sufficient reliable information for the preparation of the financial statements in conformity with Generally Accepted Accounting Principles (GAAP). Because the costs of internal controls should not outweigh its benefits, the City’s comprehensive framework of internal controls has been designed both to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement and that they are fairly presented. As management we attest that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
Davis Farr, LLP, Certified Public Accountants, have issued an unmodified opinion of the fair presentation of the City of Coronado’s financial statements for the fiscal year ended June 30, 2023.
The independent auditor’s opinion report is presented as the first component of the financial section of this report.
Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. This letter of transmittal is designed to complement and should be read in conjunction with the MD&A.
CITY OF CORONADO PROFILE
The City of Coronado, which incorporated on December 12, 1890, is located on a narrow peninsula at the southwestern edge of San Diego County. Bounded by the Pacific Ocean and the San Diego Bay, the City is accessible by the two-mile long San Diego-Coronado Bridge from the east and Silver Strand Highway to the south. The City occupies a land and water area of 32.7 square miles, serving a population of approximately 20,000 living in approximately 9,500 housing units. In addition, the City also serves seasonal residents, tourists, and local area daytime visitors.
The City of Coronado operates under a council-manager form of government, with a Mayor and four-member Council elected at-large for four-year staggered terms, with a two-term limit for each elected office. The City provides a wide range of services, including general government, police Attachment 1
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and fire protection; beach lifeguard services; disaster preparedness; building safety regulation and inspection; infrastructure and public facility capital improvement construction; sewer, storm drain, street, park and beach maintenance; library services; golf; and recreational and cultural programs.
Coronado has a rich history. It began as a resort community in 1886 with the formation of the Coronado Beach Company, followed by the opening of the Hotel Del Coronado in 1888. The City incorporated as a general law city in 1890. Coronado’s City Hall and Community Center are located on the Glorietta Bay Promenade, once the site of Tent City, a popular vacation destination from 1900 to 1939. In 1917, the U.S. Government established a military base at the north end of the Coronado peninsula, now known as Naval Air Station North Island (NASNI), the “Birthplace of Naval Aviation.” In 1943, as a second military installation, Naval Amphibious Base, Coronado (NAB) was added along the Silver Strand. NAB is the West Coast base of operations for SEAL teams. In 1969, the San Diego-Coronado Bridge opened, replacing an auto ferry system between Coronado and downtown San Diego and now accommodates an average of 83,000 vehicles per day. Commuters to Naval bases result in the City doubling in size every workday. Today, Coronado is known for its historical charm as a residential community, a iconic tourist destination, as well as headquarters to the largest military command in the southwest region of the United States.
ECONOMIC CONDITIONS
Local Economy
The local economy for the City of Coronado is primarily based on tourism, but the largest employer is Naval Base Coronado (NBC), a consolidated United States Navy installation encompassing eight regional installations throughout Southern California, three of which are located in Coronado. NBC employs over 20,000 military and civilian personnel, a majority of whom are based at NASNI and NAB. The City’s proximity to the ocean, luxury resorts, award winning beaches, and island-like characteristics have resulted in Coronado being one of the region’s most recognized and desirable destinations for out-of-town and regional visitors. Seventeen local hotels provide more than 1,900 rooms, plus there are over 70 cafés and restaurants in the City. Hotels and restaurants employ over 4,000 workers.
Coronado’s property tax roll values for all taxable properties recorded a growth of 8.3% in fiscal year 2022-23 compared to fiscal year 2021-22. Property, sales, and transient occupancy tax (TOT) revenues are the City’s three largest revenue sources and account for 74% of general fund revenues.
Long-Term Financial Planning
The annual budget serves as the foundation for the City’s financial planning and control. The City Manager presents the proposed balanced budget to the City Council for review prior to the beginning of each fiscal year. In advance of the annual budget adoption process, the City Council also considers a multi-year financial projection for its General Fund to provide a long-term context for its annual budget. The proposed annual budget is presented at a public workshop in May, and the Council adopts the final balanced budget no later than June 30, the close of the fiscal year. The budget is presented by fund and department. As of June 30, 2023, the City has 38 capital projects underway and has appropriated funds for 8 new capital projects in fiscal year 2023-24. Only the City Council has the authority to increase total appropriations within any fund, subject to the Attachment 1
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appropriations limitations established by State law. In contrast to other California cities, Coronado has enjoyed financial strength through conservative budgeting, most notably with over a decade of the General Fund operating without budget shortfalls and without dipping into reserves to make up for budget shortfalls.
Financial Policies
As part of the annual budget adoption process, the City Council reviews and updates the fund balance policy, including the size and use of reserves. For fiscal year 2023-24, the Council committed $33.3 million of the general fund balance for responding to unforeseen emergencies and economic downturns, and operating cash flow purposes, $4 million for future capital projects, and $500,000 for historic property preservation.
The City of Coronado has taken proactive steps in the long-term management of sustainable, affordable pension benefits for employees. In 2011, the City paid off its CalPERS Public Safety Plan side fund liability of $6.2 million several years early in order to avoid over $3.8 million in future interest costs. In 2013, the City pre-funded a $5 million contribution toward its Miscellaneous Pension Plan, shortening the amortization of its pension liabilities and lowering the City’s Miscellaneous Plan contribution rate. In January 2014, the City established an Other PostEmployment Benefits (OPEB), IRS Section 115 irrevocable trust with Public Agency Retirement Services (PARS) to stabilize future OPEB contribution costs. Total contributions made were $2,075,000 with a market value of $3,260,570 as of June 30, 2023. In June 2015, the City prefunded a $5 million contribution toward the Safety Pension Plan, reducing the Safety pension liability, which will result in lower amortization payments in future years. In October 2015, the City established the pension IRS Section 115 irrevocable trust with PARS to stabilize future CalPERS contribution costs. Total contributions made were $13,358,000 with a market value of $14,838,792 as of June 30, 2023.
Major Initiatives
The City’s commitment for Fiscal Year 2023-24 and beyond is to continue exploring innovative services that effectively meet the needs of the community. Included among the major initiatives for this year are:
• Continued investment in City infrastructure through capital projects encompassing storm water, wastewater, recreational, public facilities, and transportation improvements. • Construction of the Parker Pump Station joint stormwater and wastewater facility. • Cays Park Master Plan process to envision a legacy park redesign serving generations. • Aquatic deck replacement to restore the pool deck and replaster our well-used community pool.
• Developing a Downtown streetscape plan for pavement, street furniture and lighting with focus on the rehabilitation of the 800 block of Orange Avenue. • Improvements in the City’s Information Technology infrastructure, including expanding the use of integrated Enterprise Resource Planning (ERP) system, community disaster preparation, GIS data collection and mapping, and implementation of a new integrated Library System.
• Developing the implementation strategy of the Climate Action Plan and Sea Level Rise Vulnerability and Adaptation Plan.
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• Developing the Library’s Winn Room renovation plan.
The preparation of the Annual Comprehensive Financial Report was made possible by the dedicated services of the Finance Division of the Administrative Services Department. Special recognition goes to Madeline Smith, the City’s Finance Manager, who continues to dedicate herself to the preparation of this Annual Comprehensive Financial Report and its timely release.
There is no doubt that the City of Coronado enjoys a quality of life that sets it apart from other communities. Credit is due to current and previous Mayors and Councils for their support for maintaining the highest standards of professionalism in the management of the City’s finances.
Respectfully Submitted,
Tina Friend John J. Kim
City Manager Director of Administrative Service
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CITY COUNCIL
COMMUNITY DEVELOPMENT
SUCCESSOR AGENCY
BOARD &
COMMISSIONS
CITY MANAGER
LIBRARY
RECREATION
& GOLF
COMMUNITY
DEVELOPMENT
PUBLIC
SERVICES &
ENGINEERING
CITIZENS OF CORONADO
CITY COUNCIL
COMMUNITY DEVELOPMENT
SUCCESSOR AGENCY
BOARD &
COMMISSIONS
CITY MANAGER
CITY COUNCIL
COMMUNITY DEVELOPMENT
SUCCESSOR AGENCY
CITY ATTORNEY
(Contract)
BOARDS &
COMMISSIONS
CITY MANAGER
CITY CLERK
ADMINISTRATIVE
SERVICES POLICE
FIRE
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CITY OF CORONADO
LISTING OF ELECTED & APPOINTED OFFICIALS
As of June 30, 2023
ELECTED OFFICIALS
Richard Bailey
Mayor
Mike Donovan John Duncan
Council Member Council Member
Carrie Anne Downey Casey Tanaka
Council Member Council Member
APPOINTED OFFICIALS
Tina Friend
City Manager
Johanna Canlas
City Attorney
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CITY OF CORONADO
FINANCIAL SECTION
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Independent Auditor’s Report
City Council
City of Coronado
Coronado, California
Report on the Audit of the Financial Statements
Opinions
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 (City), as of and for the year June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Coronado, as of June 30, 2023, and the respective changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (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 City of Coronado 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 opinions.
Emphasis of Matter
During the year ended June 30, 2023, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 96: Subscription-based Information Technology Arrangements. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements The City of Coronado’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Coronado’s ability to continue as a going concern for one year after the date that the financial statements are issued.
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Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with 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.
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 City of Coronado’s internal control.
Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Coronado’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.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedule-general fund, schedule of changes in the net pension liability and related ratios-miscellaneous plan, schedule of plan contributions-miscellaneous plan, schedule of proportionate share of the net pension liability-safety plan, schedule of contributions- safety plan, schedule of changes in Net OPEB liability and related ratios, and schedule of OPEB plan contributions be presented to supplement the basic financial statements.
Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Coronado’s basic financial statements. The combining nonmajor fund financial statements and budgetary comparison schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining nonmajor fund financial statements and budgetary comparison schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining nonmajor fund financial statements and budgetary comparison schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the Annual Comprehensive Financial Report. The other information comprises the introductory section and statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated July 5, 2024 on our consideration of the City of Coronado’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Coronado’s internal control over financial reporting and compliance.
Irvine, California
July 5, 2024
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MANAGEMENT’S DISCUSSION
THE CITY OF CORONADO AND ANALYSIS
As management of the City of Coronado (the City), we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2023. The Management’s Discussion and Analysis is designed to (a) assist the reader in focusing on significant financial issues; (b) provide an overview of the City’s financial activity; (c) identify changes in the City’s financial position (its ability to address future challenges); (d) identify any material deviations from the financial plan (approved budget); and (e) identify individual fund issues or concerns.
We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the financial statements.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of the City exceeded its liabilities and deferred inflows at June 30, 2023, by $350 million (net position). Of this amount, $136 million (unrestricted net position) may be used to meet the government’s ongoing obligations to residents and creditors. The City’s overall revenue was $105 million compared to expenses of $83 million, resulting in an increase in net position of $22 million.
The City’s Governmental Activities total outstanding long-term debt at June 30, 2023, was $75 million, which is $38 million higher than the prior year. The deferred inflows of the City at June 30, 2023, was $5 million, which is $18 million lower than the prior year. The City’s Governmental Funds reported combined ending fund balances of $206 million.
Revenues exceeded expenditures including transfers-out by $23 million. At June 30, 2023, committed, assigned and unassigned fund balance for the general fund was $112 million, or 174% of total general fund expenditures.
OVERVIEW OF THE FINANCIAL STATEMENTS
This Management Discussion and Analysis is intended to serve as an introduction to the City’s Annual Comprehensive Financial Report (ACFR) for the Fiscal Year ending June 30, 2023, and the basic financial statements contained therein. The City’s basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) the notes to the financial statements. This ACFR also contains other supplementary information in addition to the basic financial statements intended to furnish additional detail to support the basic financial statements.
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MANAGEMENT’S DISCUSSION
THE CITY OF CORONADO AND ANALYSIS
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to a private sector business.
Statement of Net Position: This statement presents information on all of the City’s assets, liabilities, and deferred inflows/outflows of resources, with the difference between these items reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
Statement of Activities: This statement presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both of the government-wide financial statements, the Statement of Net Position and the Statement of Activities, distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety, construction and maintenance, planning and building services, culture and leisure, transportation, and housing. The business-type activities of the City include wastewater, golf, and storm drain.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories as follows:
Governmental Funds: Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on nearterm inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 6 Attachment 1
MANAGEMENT’S DISCUSSION
THE CITY OF CORONADO AND ANALYSIS
The City maintains 15 individual governmental funds. Information is presented separately in the governmental fund Balance Sheet and in the governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances for the General Fund and Capital Projects Funds, which are considered major funds.
Data from the other 13 governmental funds are combined into a single, aggregated presentation.
Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in this report.
The City adopts an annual appropriated budget for its General Fund. A budgetary comparison schedule for the General Fund has been provided in this report to demonstrate compliance with this budget.
Proprietary Funds: The City maintains one type of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Wastewater Utility, Golf Course, and Storm Drain Utility.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide information on each of the enterprise funds noted above, as all are considered to be major funds.
The following table shows a summary of the Statement of Net Position as of June 30, 2023 and 2022.
(in thousands)
2023 2022 2023 2022 2023 2022
Current assets $ 213,122 $ 192,176 $ 25,161 $ 23,414 $ 238,283 $ 215,590 Noncurrent assets:
Capital assets 127,854 130,411 49,442 45,296 177,296 175,707 Total assets 340,976 322,587 74,603 68,710 415,579 391,297 Total deferred
outflows of resources 30,497 12,539 1,681 887 32,178 13,426 Current liabilities 5,816 7,081 3,629 1,625 9,445 8,706 Noncurrent liabilities 75,233 36,847 4,692 2,438 79,925 39,285 Total liabilities 81,049 43,928 8,321 4,063 89,370 47,991 Total deferred
inflows of resources 5,482 23,798 2,422 4,039 7,904 27,837 Net position:
Invested in capital assets 127,311 130,411 49,420 45,296 176,731 175,707 Restricted 37,706 38,146 - - 37,706 38,146
Unrestricted 119,925 98,843 16,121 16,199 136,046 115,042 Total net position $ 284,942 $ 267,400 $ 65,541 $ 61,495 $ 350,483 $ 328,895 Statement of Net Position
June 30, 2023 and 2022
Governmental Activities Business-Type Activities Totals 7 Attachment 1
MANAGEMENT’S DISCUSSION
THE CITY OF CORONADO AND ANALYSIS
Fiduciary Funds: Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reported in the government-wide financial statement because the resources of those funds are not available to support the City’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.
The City maintains one type of fiduciary funds, private purpose trust fund. This private purpose trust fund was established with the dissolution of the Former Redevelopment Agency to report the Successor Agency activity in the City’s financial statements, see Note 19 in this report.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain supplemental and statistical information that may be useful to the users of the City’s financial statements. Statistical information about the City can be found in the last section of this report.
FINANCIAL ANALYSIS
Government-Wide Analysis
During FY 2022-23, the City’s total net position increased from $329 million to $350 million, an increase of 6.4%. The increase is attributable to an increase of $17 million in governmental activities and $4 million in business activities.
At June 30, 2023 the City’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $350 million. The total amount of capital assets (i.e., land, buildings, infrastructure, and equipment) increased by $1 million from FY 2021-22 as addition to capital assets exceeded depreciation and deletion. Approximately 50% of the City’s net position is investment in capital assets. As of June 30, 2023, there was no debt used to acquire assets. The City uses these capital assets to provide a variety of services to the public; consequently, these assets are not available for future spending.
An additional portion of the City’s net position, 11%, represents resources that are subject to external restrictions as to how they may be used. These restrictions are typically imposed by parties outside the government (such as laws, regulations, creditors, or grantors of other governmental agencies). Assets are also restricted when associated with particular liabilities (for instance, restricted assets associated with revenue bonds). An amount equal to these restricted assets, less any related liabilities, is subsequently reported. 8 Attachment 1
MANAGEMENT’S DISCUSSION
THE CITY OF CORONADO AND ANALYSIS
At the end of FY 2022-23 the remaining balance of net position, which is unrestricted, is $136 million. The unrestricted portion of net position comprises $120 million and $16 million in governmental and business-type activities, respectively. Unrestricted funds normally represent assets that are not otherwise restricted for any specific purpose and not specifically invested in capital assets.
The following table shows the summary of the City’s activities and the components that caused the City’s net position to increase:
Governmental Activities: Overall, revenues for the year ending June 30, 2023, increased by $19 million, or 21.3%. The following is a list of notable changes compared to the prior year:
Property Tax revenue increased by $3.3 million which resulted from a $863 million or
8.3% increase in the City’s assessed value of taxable properties during FY 2022-23 as compared to the prior year.
2023 2022 2023 2022 2023 2022
Revenues:
Program Revenues
Charges for Services $ 7,007 $ 6,2 45 $ 13,232 $ 14,963 $ 20 ,239 $ 21 ,208 Operating Grants & Contributions 6,560 5,9 96 - - 6,560 5, 996 Capital Grants & Contributions 137 991 - - 1 37 991
General Revenues
Property Tax 39,099 3 5,784 - - 39 ,099 35 ,784
Transient Occupancy Tax 22,741 1 9,745 - - 22 ,741 19 ,745 Sales & Use Tax 5,016 4,8 01 - - 5,016 4, 801
Other Taxes 2,050 1,6 39 - - 2,050 1, 639
Use of Money and Property 6,398 (3,649) 1,810 (367) 8,208 (4,016) Other 1,012 305 - - 1,012 305
Total Revenues 90,020 7 1,857 15,042 14,596 1 05,062 86 ,453 Expenses:
General Government 13,435 10,424 - - 13,435 10,424
Public Safety 29,689 23,768 - - 29,689 23,768
Construction & Maintenance 13,883 11,584 - - 13,883 11,584 Culture & Leisure 11,286 9,036 - - 11,286 9,036
Planning & Building 3,385 2,746 - - 3,385 2,746
Housing 190 97 - - 190 97
Wastewater - - 6,227 6,277 6,227 6,277
Golf - - 3,868 3,486 3,868 3,486
Storm Drain - - 1,511 1,301 1,511 1,301
Total Expenses 71,868 57,655 11,606 11,064 83,474 68,719 Increase (Decrease) in Net
Position Before Transfers 18,152 14,202 3,436 3,532 21,588 17,734 Transfers (610) (500) 610 500 - -
Change in Net Position 17,542 13,702 4,046 4,032 21,588 17,734 Net Position, July 1 267,400 253,698 61,495 57,463 328,895 311,161 Net Position, June 30, $ 284,942 $ 267,400 $ 65,541 $ 61,495 $ 3 50,483 $ 32 8,895 Statement of Activities
For the fiscal year ended June 30, 2023 and 2022
(in thousands)
Governmental Activities Business-Type Activities Totals 9 Attachment 1
MANAGEMENT’S DISCUSSION
THE CITY OF CORONADO AND ANALYSIS
Transient Occupancy Tax revenue increased by $3.0 million due to continued demand and recovery from the pandemic in the City’s tourism activities during FY 2022-23. Use of money and Property increased by approximately $12.2 million, primarily from investment revenue due to higher interest from various investment assets held by the City.
Total expenses increased by $15 million, or 21.5%. The following are the notable changes compared to the prior year:
General Government increased by $3.0 million primarily due to increases in pension plan’s contribution rates and decrease in personnel vacancies. Public safety increased by $5.9 million due to an increase in the safety pension plan’s contribution rates, grant expenditures, and decreases in personnel vacancies. Construction and maintenance increased by $2.3 million due to increased spending and activities on major capital maintenance projects.
Culture and Leisure increased by $2.3 million as various recreational programs returned to the pre-pandemic level.
Housing and Planning & Building combined increased by $700,000 primarily due to increases in pension plan’s contribution rates.
The following chart compares governmental activities’ program revenues with expenses for all functions.
$13,435
$29,689
$11,286
$13,883
$3,385
$190
$2,728
$4,200
$2,095
$3,002
$1,651
$28
$- $10,000 $20,000 $30,000 $40,000 $50,000
General government
Public safety
Construction and maintenance
Culture and leisure
Planning and building services
Housing
Expenses and Program Revenues
Governmental Activities
Year Ended June 30, 2023
(in thousands)
Expenses Program Revenues
10 Attachment 1
MANAGEMENT’S DISCUSSION
THE CITY OF CORONADO AND ANALYSIS
Business-Type Activities: During FY 2022-23, net position for business-type activities increased by $4 million to $66 million. The net increase in net position was mostly due to continued operating income from Wastewater Utility fund and increase of revenue in Golf Course fund from high demand.
Analysis of the Governmental Funds
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental funds: The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as it represents the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the City itself, or a group or individual that has been delegated authority to assign resources for use for particular purposes by the City Council.
As of June 30, 2023, the City’s governmental funds reported combined ending fund balances of $206 million, an increase of $23 million in comparison with the prior year. Of this amount, $42 million constitutes unassigned fund balance, which is available for spending at the government’s discretion. The remainder of the fund balance is either non-spendable, restricted, committed, or assigned to indicate that it is 1) not in spendable form or legally required to be maintained intact ($6 million); 2) restricted for particular purposes ($53 million); 3) committed for particular purposes ($36 million); or 4) assigned for particular purposes ($69 million). 11 Attachment 1
MANAGEMENT’S DISCUSSION
THE CITY OF CORONADO AND ANALYSIS
The following chart compares fund balance for the General Fund in the current and prior fiscal years.
The General Fund, which is the chief operating fund of the City, at June 30, 2023, had a total fund balance of $151 million, an increase of $18 million from FY 2021-22. The following schedule shows changes in fund balances for the governmental funds:
As a measure of the General Fund’s liquidity, it may be useful to compare both the General Fund’s unassigned fund balance and total fund balance to General Fund expenditures. Unassigned fund balance represents 65.5% of total general fund expenditures, while total fund balance represents 233% of that same amount.
$6,825
$32,685 $32,116
$30,227 $30,706
$6,175
$32,249
$36,025
$33,861
$42,252
$0
$10,000
$20,000
$30,000
$40,000
$50,000
Nonspendable Restricted Committed Assigned Unassigned
General Fund
Components of Fund Balance
June 30, 2022 and 2023
(in thousands)
FY 2021-22 FY 2022-23
Non-Spendable Restricted Committed Assigned Unassigned
General Fund $ (649,820) $ 2,530,957 $ 3,909,000 $ (16,940,582) $ 29,153,221 $ 18,002,776 Capital Projects - - - 2,381,567 - 2,381,567
Other Governmental Funds 239 2,153,482 - - - 2,153,721
$ (649,581) $ 4,684,439 $ 3,909,000 $ (14,559,015) $ 29,153,221 $ 22,538,064 Net Change in
Fund Balance
Governmental Funds Increase / (Decrease) in Fund Balances in FY 2022-23 Compared to FY 2021-22
12 Attachment 1
MANAGEMENT’S DISCUSSION
THE CITY OF CORONADO AND ANALYSIS
In the other governmental funds, all fund balances are assigned ($35 million) or restricted ($20 million) for particular purposes. The following chart compares fund balance in other governmental funds in the current and prior fiscal years.
Proprietary Funds: The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The following two tables show the changes in net position of the proprietary funds and invested in capital assets and unrestricted portions of net position of the proprietary funds of the City. The factors affecting the changes in net position and other factors regarding the proprietary funds have already been addressed in the discussion of the City’s business-type activities.
$19
$18,123
$-
$32,362
$19 $-
$20,277
$-
$34,743
$-
$0
$10,000
$20,000
$30,000
$40,000
$50,000
Nonspendable Restricted Committed Assigned Unassigned
Other Governmental Funds
Components of Fund Balance
June 30, 2022 and 2023
(in thousands)
FY 2021-22 FY 2022-23
13 Attachment 1
MANAGEMENT’S DISCUSSION
THE CITY OF CORONADO AND ANALYSIS
Changes in Net Position
Proprietary Funds
(in thousands)
Net Position
Proprietary Funds as of June 30, 2023
(in thousands)
Funds Budgetary Highlights
Original budget compared to final budget: During the year, there were increases in revenue and expenditure projections across all funds. The majority of the $4 million increase in revenue was primarily due to continued strong performance in the transient occupancy taxes from returning business sales and tourism. Adjustments to the General Fund expenditure budget were $5 million, including personnel, professional services, and construction expenses.
Final budget compared to actual results: In the General Fund, revenues were greater than projections by $13 million. This increase was primarily due to higher actual results in sales and transient occupancy taxes, as well as, the use of money and property, specifically from higher investment earnings. In the General fund, expenditures were under budget in all functional areas.
This was primarily a result of decreasing but continuing vacancies, which resulted in delays in some of the planned projects and tasks.
Debt Administration and Capital Assets
Long-term debt: Compensated absences, claims and judgments, and net pension and OPEB liabilities comprise the City’s long-term obligations. Overall, the City’s debt increased by $40 million during Fiscal Year 2022-23. The overall increase is due primarily to the increase in the Net Pension Liability. The table below provides a comparison of the ending balance at June 30, 2022 and 2023. Additional information on the City’s long-term debts can be found in Note 8 in the Financial Statement section of this report.
Net Position
June 30, 2022
Changes in
Net Position
Net Position
June 30, 2023
Wastewater $ 48,067 $ 2,841 $ 50,908
Golf 7,172 1,399 8,571
Storm Drain 6,256 (194) 6,062
Total $ 61,495 $ 4,046 $ 65,541
Investment in
Capital Assets
Unrestricted
Net Position
Total Net
Position
Wastewater $ 38,380 $ 12,528 $ 50,908
Golf 4,119 4,452 8,571
Storm Drain 6,921 (859) 6,062
Total $ 49,420 $ 16,121 $ 65,541
14 Attachment 1
MANAGEMENT’S DISCUSSION
THE CITY OF CORONADO AND ANALYSIS
Outstanding Debt
(in thousands)
Capital assets: The City’s net capital assets for its governmental and business-type activities as of June 30, 2023 totals $177 million (net of accumulated depreciation). This investment includes land, art and collections, buildings, improvements other than buildings, infrastructure, and vehicles and equipment. The net change in capital assets for the current fiscal year was an increase of $1 million or 0.5%.
Capital Assets
(net of accumulated depreciation)
(in thousands)
The increase in the capital assets’ net book value was primarily due to the increase in construction in progress. Due to impacts of COVID pandemic on construction, the City continued to focus on construction projects in progress from prior years.
Additional information on the City’s capital assets can be found in Note 7 in the Financial Statement section of this report.
2023 2022 2023 2022 2023 2022
Compensated Absences $ 2,952 $ 2,623 $ 208 $ 217 $ 3,160 $ 2,840 Claims and Judgments 9,042 7,821 - - 9,042 7,821
Leases and SBITA 543 643 22 - 565 643
Net Pension Liability 59,820 24,484 4,095 1,974 63,915 26,458 Net OPEB Liability 2,877 1,920 367 246 3,244 2,166
Totals $ 75,234 $ 37,491 $ 4,692 $ 2,437 $ 79,926 $ 39,928 Governmental
Activities
Business-Type
Activities: Total
2023 2022 2023 2022 2023 2022
Land $ 33,127 $ 33,127 $ - $ - $ 33,127 $ 33,127
Art and Collections 1,829 1,829 - - 1,829 1,829
Construction in
Progress 3 ,199 4,045 1 0,403 4,504 13,602 8,549
Buildings 45,151 46,534 3,248 3,381 48,399 49,915
Improvements Other
Than Buildings 12,866 13,638 21,376 22,261 34,242 35,899 Infrastructure 25,526 25,207 7,869 8,174 33,395 33,381
Vehicles and
Equipment 5,602 6,032 6,481 6,932 12,083 12,964
Equipment Under
Lease 554 642 65 45 619 687
Totals $ 127,854 $ 131,054 $ 49,442 $ 45,297 $ 177,296 $ 176,351 Governmental
Activities Business-Type Activities: Total
15 Attachment 1
MANAGEMENT’S DISCUSSION
THE CITY OF CORONADO AND ANALYSIS
Economic Factors and Next Year’s Budget
The following economic factors currently affect the City of Coronado and were considered in developing the FY 2023-24 budget.
Assessed valuation growth in January 2023, which drives property tax growth for Fiscal Year 2023-24, was 7.3%. Assessed values in Coronado continue to trend upward, which accounts for the tax base.
Revenue from transient occupancy taxes and sales tax have made full recovery to the prepandemic level as the demand for tourism remain strong. The City has undertaken efforts to manage its liabilities associated with pensions and Other Post Employment Benefits (OPEB). In FY 2022-23, the City contributed a total of $1.0 million to its Internal Revenue Code Section 115 Irrevocable Pension Trust Fund which is maintained by the Public Agency Retirement System. The balance of the trust of $14.8 million is to be used to stabilize expected future increases in pension costs. At the end of FY 2012-13, the City made a lump-sum payment of $5 million to the Miscellaneous Pension Plan maintained by CalPERS, which lowered net pension liability related to that plan and normal cost contribution rate. At the end of FY 2014-15, the City made a lumpsum payment of $5 million to its Safety Pension Plan that reduced the net unfunded liability and resulted in lower amortization payments in future years. The City budgeted an additional $450,000 million to be contributed to the pension trust fund. These and other strategies for managing pension costs continue to be a high priority of the City. The General Fund minimum reserve requirement established by City Council policy was increased for FY 2023-24 to $37.8 million, an increase of 5% from the reported amount for FY 2022-23. The reserve requirement is committed to be used: 1) in the event of needed emergency response and/or economic downturns ($33.3 million); 2) for major construction projects ($4 million); and 3) for loss in property tax revenues from designation of historic preservation properties ($500,000). The actual amount of unassigned general fund reserves at June 30, 2023 totals $42 million and is projected to remain stable during FY 2023-24 as the revenues and expenditures expect to be level.
The City’s FY 2023-24 Budget is available online at the City’s website.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to:
Department of Administrative Services
City of Coronado
1825 Strand Way,
Coronado, CA 92118
16 Attachment 1
CITY OF CORONADO
BASIC FINANCIAL STATEMENTS
17 Attachment 1
THIS PAGE INTENTIONALLY LEFT BLANK
18 Attachment 1
CITY OF CORONADO
STATEMENT OF NET POSITION
JUNE 30, 2023
Governmental
Activities
Business-Type
Activities Total
ASSETS:
Cash and investments $ 169,312,952 $ 41,151,304 $ 210,464,256 Restricted 115 trust cash and investments 14,838,792 - 14,838,792 Accounts, grants and taxes receivable 4,427,782 889,604 5,317,386 Notes receivable 7,723,437 616,875 8,340,312
Interest receivable 5,690,518 - 5,690,518
Allowance for uncollectible receivables (10,158,194) - (10,158,194) Leases receivable 1,787,384 1,916,239 3,703,623
Loans to Successor Agency 52,783 - 52,783
Internal balances 19,413,265 (19,413,265) -
Prepaid items 33,969 - 33,969
Capital assets not being depreciated 38,155,517 10,403,255 48,558,772 Capital assets, net of accumulated depreciation 89,698,642 39,038,760 128,737,402 TOTAL ASSETS 340,976,847 74,602,772 415,579,619
DEFERRED OUTFLOWS OF RESOURCES:
Deferred items related to pensions 29,079,220 1,501,901 30,581,121 Deferred items related to OPEB 1,417,982 179,043 1,597,025 TOTAL DEFERRED OUTFLOWS OF RESOURCES 30,497,202 1,680,944 32,178,146 LIABILITIES:
Accounts payable 4,728,701 3,629,324 8,358,025
Unearned revenue 792,186 - 792,186
Deposits payable 295,498 - 295,498
Noncurrent liabilities:
Long-term liabilities due within one year 4,920,652 145,165 5,065,817 Long-term liabilities due in more than one year:
Lease and SBITA payable 399,280 13,366 412,646
General, claims & compensated absences 7,216,201 71,288 7,287,489 Net pension liability 59,820,053 4,094,530 63,914,583
Net OPEB liability 2,876,901 367,051 3,243,952
TOTAL LIABILITIES 81,049,472 8,320,724 89,370,196
DEFERRED INFLOWS OF RESOURCES:
Deferred items related to pensions 3,638,134 623,581 4,261,715 Deferred items related to OPEB 139,219 17,579 156,798
Deferred items related to leases 1,704,999 1,780,568 3,485,567 TOTAL DEFERRED INFLOWS OF RESOURCES 5,482,352 2,421,728 7,904,080 NET POSITION:
Net investment in capital assets 127,311,375 49,420,287 176,731,662 Restricted for:
Housing 817,615 - 817,615
Public safety 203,805 - 203,805
Culture & leisure 8,262,205 - 8,262,205
Construction & maintenance 2,967,689 - 2,967,689
Planning & building 1,502,140 - 1,502,140
Capital projects 15,903,112 - 15,903,112
City transportation 6,657,119 - 6,657,119
Public, Educational and Governmental (PEG) fees 485,646 - 485,646 Hotel Del Coronado master plan 848,088 - 848,088
Library endowment:
Expendable 39,151 - 39,151
Nonexpendable 18,938 - 18,938
Unrestricted 119,925,342 16,120,977 136,046,319
TOTAL NET POSITION $ 284,942,225 $ 65,541,264 $ 350,483,489 Primary Government
See Notes to the Financial Statements
19 Attachment 1
CITY OF CORONADO
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2023
Expenses Charges for Services
Operating
Contributions and
Grants
Capital Contributions
and Grants
Functions/Programs
Primary Government:
Governmental Activities:
General government $ 13,435,216 $ 2,536,493 $ 191,030 $ - Public safety 29,688,984 361,356 3,838,740 -
Construction and maintenance 13,882,871 486,055 1,472,066 137,297 Culture and leisure 11,286,300 1,946,857 1,054,898 -
Planning and building services 3,385,350 1,648,414 3,000 - Housing 190,426 28,000 - -
Total Governmental Activities 71,869,147 7,007,175 6,559,734 137,297 Business-Type Activities:
Wastewater Utility 6,226,744 7,836,385 - -
Golf Course 3,868,055 4,731,490 - -
Storm Drain 1,511,018 663,960 - -
Total Business-Type Activities 11,605,817 13,231,835 - - Total Primary Government $ 83,474,964 $ 20,239,010 $ 6,559,734 $ 137,297 Total General Revenues and Transfers
Change in Net Position
Net position beginning of the year
Net Position at End of Year
Transfers
Other
Program Revenues
General Revenues:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Real property transfer taxes
Use of money and property
See Notes to the Financial Statements
20 Attachment 1
Governmental Activities
Business-Type
Activities Total
$ (10,707,693) $ - $ (10,707,693)
(25,488,888) - (25,488,888)
(11,787,453) - (11,787,453)
(8,284,545) - (8,284,545)
(1,733,936) - (1,733,936)
(162,426) - (162,426)
(58,164,941) - (58,164,941)
- 1,609,641 1,609,641
- 863,435 863,435
- (847,058) (847,058)
- 1,626,018 1,626,018
(58,164,941) 1,626,018 (56,538,923)
39,098,953 - 39,098,953
22,741,252 - 22,741,252
5,015,515 - 5,015,515
1,462,438 - 1,462,438
589,869 - 589,869
6,397,979 1,809,778 8,207,757
1,011,620 - 1,011,620
(610,487) 610,487 -
75,707,139 2,420,265 78,127,404
17,542,198 4,046,283 21,588,481
267,400,027 61,494,981 328,895,008
$ 284,942,225 $ 65,541,264 $ 350,483,489
Net (Expenses) Revenues and Changes in Net Position
Primary Government
21 Attachment 1
CITY OF CORONADO
BALANCE SHEET
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
$ 129,070,046 $ 20,659,788 $ 19,583,118 $ 169,312,952
Restricted 115 trust cash 14,838,792 - - 14,838,792
4,281,745 - 146,037 4,427,782
1,299,168 - 6,424,269 7,723,437
1,480,634 - 4,209,884 5,690,518
Allowance for uncollectible receivables (324,042) - (9,834,152) (10,158,194) 1,787,384 - - 1,787,384
52,783 - - 52,783
Advances to other funds 5,113,265 14,300,000 - 19,413,265 33,969 - - 33,969
$ 157,633,744 $ 34,959,788 $ 20,529,156 $ 213,122,688
Liabilities, Deferred Inflows and Fund Balances:
$ 4,324,708 $ 216,433 $ 187,560 $ 4,728,701
792,186 - - 792,186
Deposits payable 249,462 - 46,036 295,498
5,366,356 216,433 233,596 5,816,385
Deferred Inflows of Resources:
Deferred items related to leases 1,704,999 - - 1,704,999 6,175,143 - 18,938 6,194,081
32,248,740 - 20,276,622 52,525,362
36,025,000 - - 36,025,000
33,861,276 34,743,355 - 68,604,631
42,252,230 - - 42,252,230
150,562,389 34,743,355 20,295,560 205,601,304
$ 157,633,744 $ 34,959,788 $ 20,529,156 $ 213,122,688
Cash and investments
General
Fund
Capital Projects
Fund
Other
Governmental
Funds
Total
Governmental
Funds
Assets:
Fund Balances:
Accounts, grants and taxes receivable
Notes receivable
Interest receivable
Loan to Successor Agency
Prepaid items
Leases receivable
Total Assets
Liabilities:
Accounts payable
Unearned revenue
Total Liabilities
Total Liabilities, Deferred Inflows and Fund
Balances
Non-spendable
Restricted
Committed
Assigned
Unassigned
Total Fund Balances
See Notes to the Financial Statements.
22 Attachment 1
CITY OF CORONADO
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2023
Fund balances of governmental funds $ 205,601,304
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets net of depreciation have not been included as financial resources in governmental fund activity. 127,854,159
Deferred outflows related to:
Pension 29,079,220
OPEB 1,417,982 30,497,202
Long-term liabilities, compensated absences, and net pension & OPEB liabilities that have not been included in the governmental fund activity:
Claims liability (9,041,721)
Lease and SBITA liability (542,784)
Compensated absences (2,951,628)
Net pension liability (59,820,053)
Net OPEB liability (2,876,901) (75,233,087)
Deferred inflows related to:
Pension (3,638,134)
OPEB (139,219) (3,777,353)
Net position of governmental activities $ 284,942,225
See Notes to the Financial Statements.
23 Attachment 1
CITY OF CORONADO
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
General Fund
$ -$ -$ 69,430,171 69,430,171 $
676,855 - - 676,855
3,344,954 - 1,354,120 4,699,074
4,755,247 - 1,757,075 6,512,322
5,387,778 274,421 898,094 6,560,293
300,784 - - 300,784
1,219,341 - 367,405 1,586,746
949,448 - 72,477 1,021,925
86,064,578 274,421 4,449,171 90,788,170
Current:
12,333,936 - - 12,333,936
27,219,947 - 66,254 27,286,201
11,894,009 - 644,659 12,538,668
8,433,765 - 880,127 9,313,892
3,215,698 - 190,426 3,406,124
1,277,540 806,020 575,127 2,658,687
Debt service:
Principal 170,157 - - 170,157
Interest and fiscal charges 2,061 - - 2,061
64,547,113 806,020 2,356,593 67,709,726
21,517,465 (531,599) 2,092,578 23,078,444
Issuance of lease 70,107 - - 70,107
209,733 2,913,166 61,143 3,184,042
(3,794,529) - - (3,794,529)
(3,514,689) 2,913,166 61,143 (540,380)
18,002,776 2,381,567 2,153,721 22,538,064
Fund balance beginning of the year 132,559,613 32,361,788 18,141,839 183,063,240 $ 150,562,389 $ 34,743,355 $ 20,295,560 $ 205,601,304
Licenses and permits
Capital Projects
Fund
Other
Governmental
Funds
Total
Governmental
Funds
Revenues:
Taxes
Culture and leisure
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Reimbursements
Miscellaneous
Total Revenues
Expenditures:
General government
Public safety
Construction and maintenance
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances, End of Year
Planning and building services
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses):
Transfers in
See Notes to the Financial Statements.
24 Attachment 1
CITY OF CORONADO
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2023
Net change in fund balances - total governmental funds $ 22,538,064 Amounts reported for governmental activities in the statement of activities are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.
Capital asset acquisitions 1,573,681
Depreciation expense (4,771,983)
Disposal of capital assets (1,853) (3,200,155)
Workers compensation and general claims expense reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (1,221,115) Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (329,058)
Proceeds from new leases and SBITA (70,107)
Principal payment on long-term debt 170,157
Pension obligation expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (123,268)
OPEB obligation expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (222,320)
Change in net position of governmental activities $ 17,542,198 See Notes to the Financial Statements
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26 Attachment 1
CITY OF CORONADO
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2023
Wastewater Utility
Golf
Course
Storm
Drain Totals
Assets:
Current:
Cash and investments $ 34,599,355 $ 5,790,983 $ 760,966 $ 41,151,304 Accounts, grants and taxes receivable 825,518 62,851 1,235 889,604 Leases receivable - 122,466 - 122,466
Total Current Assets 35,424,873 5,976,300 762,201 42,163,374 Noncurrent:
Leases receivable - 1,793,773 - 1,793,773
Notes receivable - 616,875 - 616,875
Capital assets not being depreciated 10,403,255 - - 10,403,255 Capital assets - net of accumulated depreciation 27,976,464 4,140,869 6,921,427 39,038,760 Total Noncurrent Assets 38,379,719 6,551,517 6,921,427 51,852,663 Total Assets 73,804,592 12,527,817 7,683,628 94,016,037 Deferred Outflows of Resources:
Deferred items related to pensions 522,069 708,446 271,386 1,501,901 Deferred items related to OPEB 57,548 89,523 31,972 179,043 Total Deferred Outflows of Resources 579,617 797,969 303,358 1,680,944 Liabilities:
Current:
Accounts payable and accrued liabilities 3,219,797 298,929 110,598 3,629,324 Accrued compensated absences 49,186 68,769 18,848 136,803 Lease Payable - 8,362 - 8,362
Total Current Liabilities 3,268,983 376,060 129,446 3,774,489 Noncurrent:
Advances from other funds 18,418,805 - 994,460 19,413,265 Lease payable - 13,366 - 13,366
Accrued compensated absences 26,980 37,652 6,656 71,288 Net pension liability 1,424,839 2,061,172 608,519 4,094,530 Net OPEB liability 117,347 185,301 64,403 367,051
Total Noncurrent Liabilities 19,987,971 2,297,491 1,674,038 23,959,500 Total Liabilities 23,256,954 2,673,551 1,803,484 27,733,989 Deferred Inflows of Resources:
Deferred items related to pensions 213,799 291,975 117,807 623,581 Deferred items related to OPEB 5,651 8,788 3,140 17,579 Deferred items related to leases - 1,780,568 - 1,780,568 Total Deferred Inflows of Resources 219,450 2,081,331 120,947 2,421,728 Net Position:
Net investment in capital assets 38,379,719 4,119,141 6,921,427 49,420,287 Unrestricted 12,528,086 4,451,763 (858,872) 16,120,977
Total Net Position $ 50,907,805 $ 8,570,904 $ 6,062,555 $ 65,541,264 Business-Type Activities - Enterprise Funds
See Notes to the Financial Statements.
27 Attachment 1
CITY OF CORONADO
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
Wastewater Utility
Golf
Course
Storm
Drain Totals
Operating Revenues:
Sewer user charges $ 6,281,487 $ - $ - $ 6,281,487
Navy sewer charges 1,475,021 - - 1,475,021
Reimbursements 79,877 - - 79,877
Green fees - 4,057,236 - 4,057,236
Rents and concessions - 613,843 - 613,843
Storm drain charges - - 663,960 663,960
Miscellaneous - 60,411 - 60,411
Total Operating Revenues 7,836,385 4,731,490 663,960 13,231,835 Operating Expenses:
Operations:
Personnel services 1,231,127 1,495,737 658,790 3,385,654 Utilities 221,563 1,318,774 29,755 1,570,092
Maintenance and repair 2,409,991 340,333 165,687 2,916,011 Administration 450,802 377,038 9,455 837,295
Contract services 611,285 102,047 375,908 1,089,240
Depreciation 1,193,221 234,126 226,000 1,653,347
Total Operating Expenses 6,117,989 3,868,055 1,465,595 11,451,639 Operating Income (Loss) 1,718,396 863,435 (801,635) 1,780,196 Nonoperating Revenues (Expenses):
Interest revenue (loss) 1,225,150 336,064 34,329 1,595,543 Lease revenue - 201,012 - 201,012
Interest expense (102,619) (1,205) (37,131) (140,955)
Total Nonoperating Revenues (Expenses) 1,122,531 535,871 (2,802) 1,655,600 Income (Loss) Before Transfers 2,840,927 1,399,306 (804,437) 3,435,796 Transfers in - - 820,220 820,220
Transfers out - - (209,733) (209,733)
Total Transfers - - 610,487 610,487
Changes in Net Position 2,840,927 1,399,306 (193,950) 4,046,283 Net position beginning of the year 48,066,878 7,171,598 6,256,505 61,494,981 Net Position End of Fiscal Year $ 50,907,805 $ 8,570,904 $ 6,062,555 $ 65,541,264 Business-Type Activities - Enterprise Funds
See Notes to the Financial Statements.
28 Attachment 1
CITY OF CORONADO
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
Wastewater
Utility
Golf
Course
Storm
Drain Totals
Cash Flows from Operating Activities:
Cash received from customers and users $ 9,427,220 $ 4,778,050 $ 673,603 $ 14,878,873 Cash received from other operating activities 59,770 - - 59,770 Cash paid to suppliers for goods and services (1,472,020) (2,242,817) (613,772) (4,328,609) Cash paid to employees for services (1,217,399) (1,498,986) (647,341) (3,363,726) Net Cash Provided (Used) by Operating Activities 6,737,801 1,096,017 (587,510) 7,246,308 Cash Flows from Non-Capital Financing Activities:
Proceeds from advances from other funds 9,000,000 - - 9,000,000 Principal paid on advances from other funds (268,483) - (264,344) (532,827) Interest paid on advances from other funds (102,619) - (37,131) (139,750) Transfer in from other funds - - 820,220 820,220
Transfers out to other funds - - (209,733) (209,733)
Net Cash Provided (Used) by Non-Capital Financing Activities 8,628,898 - 309,012 8,937,910 Cash Flows from Capital and Related Financing Activities:
Acquisition and construction of capital assets (5,898,940) (83,639) - (5,982,579) Disposal of capital assets - - 209,733 209,733
Proceeds from lease revenues 137,470 - - 137,470
Principal paid on lease liability (4,563) (4,563)
Interest paid on leases - (1,205) - (1,205)
Net Cash Provided (Used) by Capital and Related Financing Activities (5,898,940) 48,063 209,733 (5,641,144)
Cash Flows from Investing Activities:
Interest received 1,225,150 336,064 34,329 1,595,543
Net Cash Provided (Used) by Investing Activities 1,225,150 336,064 34,329 1,595,543 Net Increase (Decrease) in Cash and Cash Equivalents 10,692,909 1,480,144 (34,436) 12,138,617 Cash and Cash Equivalents at Beginning of Year 23,906,446 4,310,839 795,402 29,012,687 Cash and Cash Equivalents at End of Year $ 34,599,355 $ 5,790,983 $ 760,966 $ 41,151,304 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities:
Operating income (loss) $ 1,718,396 $ 863,435 $ (801,635) $ 1,780,196 Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities:
Depreciation expense 1,193,221 234,126 226,000 1,653,347 (Increase) decrease in accounts receivable 1,670,712 46,560 9,643 1,726,915 (Increase) decrease in notes receivable 59,770 - - 59,770 (Increase) decrease in deferred outflows from pensions (272,123) (334,266) (131,860) (738,249) (Increase) decrease in deferred outflows from OPEB (17,852) (27,772) (9,918) (55,542) Increase (decrease) in accrued liabilities 2,221,621 (104,625) (32,967) 2,084,029 Increase (decrease) in unearned revenues (79,877) - - (79,877) Increase (decrease) in lease payables - - - -
Increase (decrease) in compensated absences 3,591 (18,630) 5,860 (9,179) Increase (decrease) in deferred inflows from pensions (505,191) (611,476) (262,090) (1,378,757) Increase (decrease) in deferred inflows from OPEB (11,946) (18,584) (6,637) (37,167) Increase (decrease) in net pension liability 778,426 947,088 394,526 2,120,040 Increase (decrease) in net OPEB liability 38,823 60,391 21,568 120,782 Total Adjustments 5,019,405 232,582 214,125 5,466,112
Net Cash Provided (Used) by Operating Activities $ 6,737,801 $ 1,096,017 $ (587,510) $ 7,246,308 Business-Type Activities - Enterprise Funds
See Notes to the Financial Statements.
29 Attachment 1
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30 Attachment 1
CITY OF CORONADO
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2023
Private Purpose Trust
Fund
Successor Agency of
the Former
Community
Development Agency
Assets:
Cash and investments $ 29,570,088
Interest receivable 92,269
Land 18,744,992
Total Assets 48,407,349
Liabilities:
Accounts payable 305,319
Interest payable 1,316,224
Long-term liabilities:
Due in one year 8,222,019
Due in more than one year 81,326,286
Total Liabilities 91,169,848
Deferred Inflows of Resources:
Deferred charges on refunding 784,914
Total Deferred Inflows of Resources 784,914
Net Position:
Held in trust for other purposes (43,547,413)
Total Net Position (Deficit) $ (43,547,413)
See Notes to the Financial Statements.
31 Attachment 1
CITY OF CORONADO
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
YEAR ENDED JUNE 30, 2023
Private Purpose
Trust Fund
Successor Agency
of the Former
Community
Development
Agency
Additions:
Taxes $ 20,857,860
Interest revenue 463,585
Changes in fair value of investments 164,454
Total Additions 21,321,445
Deductions:
Contractual services 307,616
Interest expense 2,984,068
Total Deductions 3,291,684
Changes in Net Position 18,029,761
Net position (deficit) beginning of the year (61,577,174) Net Position (Deficit) - End of the Year $ (43,547,413) See Notes to the Financial Statements.
32 Attachment 1
CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2023
Note 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES:
a. Reporting Entity:
The reporting entity, “City of Coronado” includes the accounts of the City, the Coronado Improvement Corporation (CIC), and the Coronado Financing Authority (CFA).
The City of Coronado was incorporated on December 12, 1890, as a general law city and operates under a council/manager form of government.
The Coronado Improvement Corporation was organized on November 27, 1981, under the Non-Profit Public Benefit Corporation Law, State of California, for the purpose of providing financial assistance to the City of Coronado by acquiring, constructing, improving, and developing certain facilities for the collection, treatment and disposal of sewage, waste and wastewater within and outside the City. Separate financial statements for the CIC are not issued.
The Coronado Financing Authority is a joint powers authority, organized pursuant to a Joint Exercise of Powers Agreement, dated as of January 1, 1990 (the “Joint Powers Agreement”) by and between its members, and the Coronado Unified School District (District), and amended on September 1, 1992, to include the City as a member. The Joint Powers Agreement was entered into pursuant to the provisions of the California Government Code.
The CFA is a separate entity constituting a public instrumentality of the State of California and was formed for the public purpose of assisting in financing and refinancing public capital improvements for a member through the purchase by the CFA of a member agency’s bonds pursuant to bond purchase agreements, and/or the loan of funds to a member. The board of directors is composed of two members from City Council, and one member from the District board. Separate financial statements for CFA are not issued and, therefore, each member includes in its financial statements the accounts and transactions pertaining to its debt issuances through the CFA.
The criteria used in determining the scope of the reporting entity are based on the provisions of GASB Statement No. 61 “The Financial Reporting Entity: Omnibus-an amendment of GASB Statements No. 14 and No. 34”. The City of Coronado is the primary governmental unit. Component units are those entities that are financially accountable to the primary governmental unit either because the City appoints a voting majority of the component unit Board, or because the component unit provides financial benefit or imposes a financial burden on the City. The City has accounted for CIC and CFA as “blended” component units. Despite being legally separate, these units are so intertwined with the City that they are in substance, part of the City’s operations. Accordingly, the balances and transactions of the CIC and the CFA are included in the Special Revenue, Capital Project, and Enterprise Funds.
33 Attachment 1
CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):
The following specific criteria were used in determining that the CIC and the CFA were blended component units:
1) The members of the City Council appoint the members of the governing body of CIC.
City employees manage CIC and provide all support functions for CIC including financial reporting and investment decisions.
2) Two of the three board members of CFA are members of the City Council. The sole function of the CFA is to issue bonds on behalf of its members. The CFA is managed by employees of the City.
b. Financial Statement Presentation, Measurement Focus, and Basis of Accounting:
The basic financial statements of the City are composed of the following:
Government-wide financial statements
Governmental fund financial statements
Proprietary fund financial statements
Fiduciary fund financial statements
Notes to the financial statements
Government-Wide Financial Statements:
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the activities of the City. For the most part, the effect of inter-fund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The government-wide financial statements do not include fiduciary funds activities.
The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include 1) charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported as general revenues. 34 Attachment 1
CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):
Governmental Fund Financial Statements:
The accounting system of the City is organized and operated on the basis of separate funds, each of which is considered a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, liabilities, fund equity, revenues, and expenditures. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Governmental fund financial statements for the City’s governmental funds are presented after the government-wide financial statements. These statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major funds individually and non-major funds in aggregate.
Proprietary Fund Financial Statements:
Proprietary fund financial statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Net Position, and a Statement of Cash Flows for each major proprietary fund and non-major funds aggregated. However, the City of Coronado does not have non-major proprietary funds.
Fiduciary Fund Financial Statements:
Fiduciary fund financial statements include a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent private-purpose trust funds and are accounted for on the economic resources measurement focus and the accrual basis of accounting.
The following are the types of funds used by the City:
GOVERNMENTAL FUNDS:
General Fund:
The General Fund is used to account for all revenues and activities financed by the City that are not required to be accounted for in another fund.
Special Revenue Funds:
Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. 35 Attachment 1
CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):
Capital Projects Funds:
Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major property equipment or facilities (other than those financed by the proprietary funds).
Permanent Funds:
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the City’s programs, that is, for the benefit of the City or its citizenry. All of the City’s permanent funds are to be used to support the City’s Library.
PROPRIETARY FUNDS:
Enterprise Funds:
Enterprise funds are used to account for operations that are (a) financed and operated in a manner similar to private business enterprises – where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes.
FIDUCIARY FUNDS:
Private-Purpose Trust Fund:
Private-Purpose Trust Fund accounts for the assets and liabilities of the former Community Development Agency (CDA) and are allocated revenue to pay estimated installment payments of enforceable obligations until obligations of the former redevelopment agency are paid in full and assets have been liquidated.
The City’s major governmental funds are as follows:
The General Fund is used to account for and report all financial resources of the City except those required to be accounted for in another fund.
The Capital Projects Fund accounts for the construction and purchase of major City infrastructure, capital assets, and facilities replacement. 36 Attachment 1
CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):
The City’s major proprietary funds are as follows:
The Wastewater Utility Enterprise Fund accounts for the provision of sewer service to the residents and military installations of the City. All activities necessary to provide such services are accounted for in this fund including, but not limited to, administration, operation, maintenance, construction, financing, and related debt service.
The Golf Course Enterprise Fund accounts for the provision of an 18-hole golf course facility to the general public. All activities necessary to provide such services are accounted for in this fund including, but not limited to, administration, operation, maintenance, and construction.
The Storm Drain Enterprise Fund accounts for the provision of storm drain service to the residents of the City. All activities necessary to provide such services are accounted for in this fund including, but not limited to, administration, operation, maintenance, construction, financing, and related debt service.
Measurement Focus:
Measurement focus is a term used to describe which transactions are recorded within the various financial statements. Basis of accounting refers to when transactions are recorded regardless of the measurement focus applied. In the government-wide Statement of Net Position and the Statement of Activities, activities are presented using the economic resources measurement focus. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the City are reported.
In the fund financial statements, all governmental funds are accounted for on a spending or “financial flow” measurement focus, meaning that only current assets and current liabilities are included on their balance sheets. Their reported fund balances (net current assets) are considered a measure of “available spendable resources.” Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period.
Noncurrent portions of long-term receivables are reported on the governmental fund balance sheets in spite of their measurement focus. However, special reporting treatments are used to indicate that they should not be considered “available spendable resources” since they do not represent net current assets. Recognition of governmental fund type revenue represented by non-current receivables are unavailable until they become current receivables. Noncurrent portions of other long-term receivables are offset by fund balance reserve amounts. Revenues, expenses, gains, losses, assets, and liabilities resulting from non-exchange transaction are recognized in accordance with the requirements of GASB Statement No. 33 “Accounting and Financial Reporting for Non-exchange Transactions”. 37 Attachment 1
CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):
Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by non-current liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as a fund asset. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
Proprietary funds are accounted for using the economic resources measurement focus.
Accordingly, all assets and liabilities (whether current or non-current) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Position present increases (revenues) and decreases (expenses) in total Net Position.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues.
Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.
When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources.
Basis of Accounting:
In the government-wide Statement of Net Position and Statement of Activities, the governmental activities and business type activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or the economic asset used, regardless of the timing of related cash flows. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place.
In the governmental fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. Accrued revenues include property taxes, taxpayer assessed taxes such as sales tax and transient occupancy taxes, and earnings on investments expected to be received within 60 days after year-end. Grant funds earned but not received are recorded as a receivable, and revenue is recognized because funds are expected to be received in accordance with grant contracts. 38 Attachment 1
CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):
Grant funds received before the revenue recognition criteria have been met are reported as unearned revenues. Expenditures are recorded when the fund liability is incurred, if measurable, except for future interest on general long-term debt, which is recognized when due.
Proprietary, other post-employment benefit trust, and private-purpose trust fund types are accounted for on the accrual basis of accounting. Revenues in these funds are recognized when earned and expenses are recognized when the liability has been incurred. Unbilled wastewater fees are accrued at year-end.
c. Cash and Investments:
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. For financial statement presentation purposes, cash and cash equivalents are shown as unrestricted cash and investments in the proprietary funds.
Investments are stated at fair value (quoted market price or best available estimate thereof).
A substantial portion of the City’s investments are in short-term, highly liquid instruments, with original maturities of three months or less. For purposes of the Statement of Cash Flows, all cash and investments held by the enterprise funds (including restricted cash and investments) are considered to be short-term and, accordingly, are classified as cash and cash equivalents. In addition, the City did not participate in non-cash investing, capital or financing activities for the year ended June 30, 2023, which would require disclosure on the statement of cash flows.
d. Prepaid Items:
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased.
39 Attachment 1
CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):
e. Capital Assets:
The City’s capital assets, including infrastructure (e.g. roads, bridges, traffic signals, and similar items) are capitalized at historical costs or estimated historical costs. The City policy has set the capitalization threshold for reporting capital assets as follows:
Art and collections $25,000
Buildings and improvements 50,000
Equipment, except vehicles with vehicle identification numbers 10,000 Vehicles with vehicle identification numbers 10,000
Infrastructure 50,000
Gifts or contributions of capital assets are recorded at acquisition value when received.
Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows:
Buildings 50 years
Improvements other than buildings 30-50 years
Vehicles and equipment 5-50 years
Infrastructure 30-60 years
Right to use assets Shorter of useful life or
life of the lease
The cost of normal maintenance and repairs that do not add to the value of the assets or materially extend asset lives are not capitalized. Construction in progress costs are capitalized and transferred to their respective capital asset category upon completion of the project.
f. Deferred Outflow/Inflow of Resources:
In addition to assets, the statements of net position and governmental funds balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has items that qualify for reporting in this category. Deferred outflows relate to the net pension and OPEB liability reported in the government-wide and proprietary statement of net position. These outflows are the result of the net difference between projected and actual earnings on pension plan investments, difference between expected and actual experience, contributions made after the measurement period, which are expensed in the following year, and of adjustments due to difference in proportions and the difference between actual contributions made and the proportionate share of contributions to the risk pool.
40 Attachment 1
CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):
In addition to liabilities, the statements of net position, the governmental funds balance sheet, and statement of fiduciary net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) that will not be recognized as an inflow of resources (revenue) until that time. The deferred inflows relating to the net pension and OPEB liability reported in the government-wide and proprietary statement of net position. These inflows are the result of the changes in assumptions, difference between expected and actual experiences, difference between actual contributions made and the proportionate share of contributions to the risk pool, and adjustments due to differences in proportions. The third relates to deferred charges on refunding tax allocation bonds reported in the statement of fiduciary net position. The fourth relates to deferred revenues associated with lease receivables that the City is a party to.
g. Claims and Judgments:
When it is probable that a claim liability has been incurred at year-end, and the amount of the loss can be reasonably estimated, the City records the estimated loss, net of any insurance coverage under its self-insurance program in the government-wide statements.
For fiscal year 2022-23, the City contracted with an independent actuary to determine the estimated long-term and short-term self-insured workers’ compensation program. Claims and judgment liabilities are expected to be liquidated by the General Fund in future periods. h. Pension:
For purposes of measuring the net pension liability and deferred outflows/inflows or resources relating to pensions and pension expense, information about the fiduciary net position of the City’s pension plan with CalPERS and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefits terms.
Investments are reported at fair value.
GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used.
Valuation Date (VD) June 30, 2021
Measurement Date (MD) June 30, 2022
Measurement Period (MP) July 1, 2021 to June 30, 2022
41 Attachment 1
CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):
The obligations for the net pension liability are primarily liquidated from the General Fund.
There is no fixed payment schedule for this liability.
i. Other Post-employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB plan and additions to/deductions from the OPEB plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value.
Generally accepted accounting principles require that the reported results must pertain to liability and asset information within a certain defined timeframe. For this report, the following timeframes are used:
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021 to June 30, 2022
The obligations for the OPEB liability are primarily liquidated from the General Fund.
There is no fixed payment schedule for this liability.
j. Fair Value Measurements:
Certain assets and liabilities are required to be reported at fair value. The fair value framework provides a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The hierarchy level of an asset or liability is based on the lowest level of input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of fair value hierarchy are described as follows:
Level 1 – Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.
42 Attachment 1
CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, and fair value is determined through the use of models or other valuation methodologies including:
Quoted prices for similar assets or liabilities in active markets; Quoted prices for identical or similar assets or liabilities in markets that are inactive; Inputs other than quoted prices that are observable for the asset or liability; and Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement. These unobservable inputs reflect the City’s own assumptions about the inputs market participants would use in pricing the asset or liability (including assumptions about risk). These unobservable inputs are developed based on the best information available in the circumstance.
The determination of what constitutes observable requires judgment by the City’s management. City management considers observable data to be that market data, which is readily available, regularly distributed or updated, reliable, and verifiable, not proprietary, and provided by multiple independent sources that are actively involved in the relevant market. The categorization of an investment or liability within the hierarchy is based upon the relative observability of the inputs to its fair value measurement and does not necessarily correspond to City management’s perceived risk of that investment or liability. k. Fund Balance Flow Assumption:
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. 43 Attachment 1
CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):
l. Net Position Flow Assumption:
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied.
m. Fund Balance Policies:
In the fund financial statements, governmental funds report the following fund balance classification:
Non-spendable - includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted - includes amounts that are constrained on the use of resources by either (a) external creditors, grantors, contributors, or laws of regulations of other governments or (b) by law through constitutional provisions or enabling legislation. Committed - includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City’s highest authority, the City Council. The formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution.
Assigned - includes amounts that are constrained by the City’s intent to be used for specific purposes but are neither restricted nor committed. The City Manager is authorized to assign amounts to a specific purpose, which was established by the governing body through Resolution Number 8556.
Unassigned - includes the residual amounts that have not been restricted, committed, or assigned to specific purposes.
An individual governmental fund could include non-spendable resources and amounts that are restricted, committed, or assigned or any combination of these classifications. The General Fund is the only fund that reports positive unassigned fund balance amount. 44 Attachment 1
CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):
n. Committed Fund Balance:
Emergency Response and Economic Stabilization – The City committed a reserve equal to six months of General Fund expenditures and transfers to provide emergency response and/or economic stabilization. The collected amount of committed funds for emergency response and economic stabilization may be utilized in the event of a locally proclaimed emergency, which shall mean the actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within this City caused by such conditions as air pollution, fire, flood, storm, epidemic, riot, or earthquake, or other conditions, including conditions resulting from war or imminent threat of war, but other than conditions resulting from a labor controversy, which conditions are or are likely to be beyond the control of the services, personnel, equipment, and facilities of this City, requiring the combined forces of other political subdivisions to combat. In addition, these funds may be utilized if there is a finding made of an unforeseen loss of at least 5% of budgeted transient occupancy or current property tax revenue or an unanticipated expenditure(s) of at least 5% of budgeted expenditures. At June 30, 2023, the amount of the commitment for emergency response and economic stabilization totals $31,525,000.
Future Capital Project – For fiscal year 2022-23, the city committed $4,000,000 for future capital improvement projects. The committed fund balance for capital improvements projects may only be reduced or increased by City Council action taken as part of the adoption or adjustment of the City’s annual budget. Historic Preservation – For fiscal year 2022-23, the City committed $500,000 for future property tax reductions which have resulted from Mills Act agreements. The committed fund balance for historic preservation may be reduced or increased by City Council action taken as part of the adoption or adjustment of the City’s annual budget or reduced without further City Council action for the following reasons:
1) In the event of a proclaimed local emergency.
2) If there is an unforeseen loss of 5% or more in total General Fund actual revenues in comparison with the budgeted revenues for any subsequent year to fiscal year 2022-23.
3) If the actual amount of Current Property Tax Revenues, in any subsequent year to fiscal year 2022-23, is less than the highest amount of Current Property Tax Revenues over the previous ten-year period.
45 Attachment 1
CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):
o. In the government-wide financial statements, Net Position is classified in three components – investment in capital assets; restricted; and unrestricted. These classifications are defined as follows:
Net investment in Capital Assets – this component of Net Position consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. If there are significant unspent related debt proceeds at year-end, the portion of the debt attributable to the unspent proceeds is not included in the calculation of investment in capital assets. Rather, that portion of the debt is included in the same Net Position component as the unspent proceeds.
Restricted – This component of Net Position consists of constraints placed on net position use through external constraints imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation. Unrestricted Net Position – This component of Net Position consists of amounts that do not meet the definition of “restricted” or “investment in capital assets.” p. Property Taxes:
Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool and are then allocated to the cities based on complex formulas.
Accordingly, the City of Coronado accrues only those taxes, which are received within 60 days after year-end.
Lien Date January 1
Levy Date June 30
Due Date November 1 and February 1
Collection Date December 10 and April 10
46 Attachment 1
CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):
q. Program Revenues:
Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions (including special assessments) that are restricted to meeting the operational or capital requirements of a particular function or segment. All taxes, including those dedicated for specific purposes, and other internally dedicated resources are reported as general revenues rather than as program revenues. r. Use of Estimates:
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and deferred inflows/outflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates.
s. Advances to Other Funds:
Long-term inter-fund advances are recorded as a receivable and as non-spendable in fund balance by the advancing governmental fund type.
t. Proprietary Funds Operating and Non-operating Revenues and Expenses:
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Wastewater Fund, Golf Course Fund, and Storm Drain Fund are charges to customers for sales and services. The wastewater fund also recognizes as operating revenue the portion of fees intended to recover the cost of connecting new customers to the sewer system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses.
47 Attachment 1
CITY OF CORONADO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
Note 1: REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (Continued):
u. Leases
The City accounts for leases in accordance with GASB Statement No 87, Leases, based on the principle that leases are financing of the right to use asset. The primary objective of this statement is to enhance the relevance and consistency of information about governments’ leasing activities. This statement establishes a single model for lease accounting based on the principle that leases are financings of the right-to-use an underlying asset. Under this statement, a lessee is required to recognize a lease liability and an intangible right-to-use asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. For additional information, refer to the disclosures in Footnote 5.
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
76 Attachment 1
CITY OF CORONADO
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%
77 Attachment 1
CITY OF CORONADO
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)
78 Attachment 1
CITY OF CORONADO
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
CITY OF CORONADO
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
80 Attachment 1
CITY OF CORONADO
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.
81 Attachment 1
CITY OF CORONADO
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
82 Attachment 1
CITY OF CORONADO
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
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
84 Attachment 1
CITY OF CORONADO
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
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
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
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
CITY OF CORONADO
REQUIRED SUPPLEMENTARY INFORMATION
89 Attachment 1
THIS PAGE INTENTIONALLY LEFT BLANK
90 Attachment 1
CITY OF CORONADO
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
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
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
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
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
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
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
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
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
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
CITY OF CORONADO
COMBINING AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
101 Attachment 1
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102 Attachment 1
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
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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105 Attachment 1
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
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
107 Attachment 1
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
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109 Attachment 1
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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124 Attachment 1
CITY OF CORONADO
STATISTICAL SECTION
125 Attachment 1
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126 Attachment 1
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
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
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
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
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
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
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
THIS PAGE INTENTIONALLY LEFT BLANK
134 Attachment 1
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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156 Attachment 1