Agenda, regular meeting, first session — Del Mar City Council, March 7, 2022 (part 1 of 2)

Table of Contents
2022-3-7 Regular Meeting Agenda
Item 1 - Minutes
Item 2 - List of Demands Packet
Item 4 - AB361 Remote Meetings - Agenda Report
Item 5 - CCC Mods for NC PC LCPA
Item 6 - Crest Canyon Evacuation Plan_FINAL
Item 7 - FY 2020-21 Final Financial Report and Audit
Item 8 - FY 21 Mid-Year Financial Report
2 7
18 41
46 75
127
318
Del Mar City Council Meeting Agenda

VIA TELECONFERENCE ONLY
1050 Camino del Mar, Del Mar, California
1050 Camino del Mar, Del Mar, CA 92014 www.delmar.ca.us Civility Works: The Del Mar Code of Civil Discourse: Together we will promote inclusion; listen to understand; show respect; be clear and fair; and focus on the issue.

Remote Regular Meeting

VIA TELECONFERENCE ONLY
Monday, March 7, 2022 at 4:30 PM
In the interest of public health, and consistent with the provisions of Assembly Bill 361 (AB 361) and related resolutions adopted by the Del Mar City Council, the City of Del Mar is temporarily taking actions to mitigate the COVID-19 pandemic by holding City Council Meetings electronically or by teleconference. This is not an in-person meeting.

Public Participation/Comment
Members of the public can participate in the meeting by either submitting a written red dot comment via email to
[email protected] or by speaking live using the Zoom link and/or dial-in information provided below. The deadline to submit written comments is 12 p.m. on the day of the meeting and the subject line of your email should clearly state the agenda item you are commenting on. Those wishing to comment live should join the Zoom meeting when the item(s) they wish to speak on is announced or at the meeting start time for items not on the agenda.

Zoom Link: https://us02web.zoom.us/j/84790910014
Phone: (669) 900-6833
Meeting ID: 847 9091 0014
While registration is not required, staff recommends members of the public submit an optional tele-comment request form (www.delmar.ca.us/telecomment) to assist with speaker
management during the meeting. For more information please visit: www.delmar.ca.us/publiccomment.

Viewing the Meeting and Access to Agenda Materials
Members of the public can watch the meeting live on the City’s website at: http://delmar.12milesout.com/Video/Live and on Cable TV Spectrum Ch. 24, AT&T Ch. 99 starting at 4:30 PM.

Agenda materials and communications from the public on agenda items, “Red Dots”, are available on the City’s website: http://www.delmar.ca.us/AgendaCenter and a hard copy of the agenda materials are available at the Del Mar Library during their business hours.

Special Needs: In compliance with the Americans with Disabilities Act, if you need special assistance to participate remotely in this meeting, please contact the Administrative Services Department via email at [email protected] or by calling (858) 755-9313, preferably at least 48 hours in advance of the meeting if possible.

Dwight Worden
Mayor
Tracy Martinez
Deputy Mayor
Dave Druker
Council Member
Terry Gaasterland
Council Member
Dan Quirk
Council Member
Ashley Jones
City Manager
Leslie E. Devaney
City Attorney
Sarah Krietor
Acting City Clerk
Del Mar City Council Regular Meeting March 7, 2022
Agenda Page 2
1050 Camino del Mar, Del Mar, CA 92014 www.delmar.ca.us I. CALL TO ORDER/ROLL CALL
II. CITY ATTORNEY CLOSED SESSION REPORT
III. PLEDGE OF ALLEGIANCE
IV. PUBLIC ORAL COMMUNICATIONS
Public oral communications will take place shortly after the start of the meeting. Those wishing to comment on any matter not on the agenda may join the meeting at 4:30 PM using the Zoom link and dial-in information: https://us02web.zoom.us/j/84790910014; Phone: (669) 900-6833; Meeting ID: 847 9091 0014.

V. CITY COUNCIL COMMENTS
VI. COMMUNITY ANNOUNCEMENTS
VII. CITY MANAGER’S REPORT
VIII. CONSENT CALENDAR
All items listed on the Consent Calendar are considered to be routine and will be acted upon with one motion. There will be no separate discussion of these items unless a member of the City Council, staff, or the public so requests, in which event, the item will be considered separately.

1. Approval of Minutes: February 22, 2022 Regular and Special Meeting, February 28, 2022 Special Meetings
Recommended Action: Approve Minutes.

Reference: Clerk’s Minutes Book

2. Ratification of List of Demands, dated March 7, 2022 Recommended Action: Ratify the List of Demands.

Reference: Clerk’s File No. 201-3

3. Waiver of Reading of Ordinances on Agenda
Recommended Action: Waive Reading of Ordinances.

Reference: Clerk’s File No. 401-4

4. Continuation of Remote Public Meetings in Compliance with Government Code Section 54953 (Assembly Bill 361)
Del Mar City Council Regular Meeting March 7, 2022
Agenda Page 3
1050 Camino del Mar, Del Mar, CA 92014 www.delmar.ca.us Recommended Action: Staff recommends that the City Council adopt a Resolution (Attachment A) making the finding required by Government Code 54953 related to Assembly Bill 361 (AB 361) to continue with remote public meetings for the next thirty (30) days during the local emergency declared in response to the COVID-19 global pandemic.

Reference: Clerk’s File No. 401-7
IX. PUBLIC HEARINGS

5. Introduction of an Ordinance to Accept Modifications to the North Commercial/Professional Commercial (NC/PC) Local Coastal Program Amendment Pursuant to Coastal Commission Action on February 10, 2022 Recommended Action: Staff recommends the City Council introduce an Ordinance (Attachment A) to accept the modifications required for final certification of the NC/PC Local Coastal Program Amendment (LCPA) per action taken by the California Coastal Commission (CCC) on February 10, 2022, granting conditional approval.

Reference: Clerk’s File No. 401-4, 401-9, 305-2
X. COUNCIL MEETING RECESS
XI. CITY COUNCIL OTHER BUSINESS

6. Crest Canyon Evacuation Plan
Recommended Action: Staff recommends the City Council receive a presentation regarding the Crest Canyon Evacuation Plan (Attachment A) that was developed by Fire management staff in conjunction with the City of San Diego.

Reference: Clerk’s File No. 1103-1

7. Fiscal Year 2020-2021 Annual Comprehensive Financial Report and Audited Financial Results
Recommended Action: Staff recommends that the City Council receive the Fiscal Year (FY) 2020-2021 Annual Comprehensive Financial Report (ACFR) and audited financial results.

Reference: Clerk’s File No. 202-5

8. Fiscal Year 2021-22 Mid-Year Financial Report
Recommended Action: Staff recommends that the City Council review the Fiscal Year (FY) 2021-22 Mid-Year Financial Report and: 1) Authorize revenue Del Mar City Council Regular Meeting March 7, 2022
Agenda Page 4
1050 Camino del Mar, Del Mar, CA 92014 www.delmar.ca.us adjustments totaling $2,689,050, and expenditure adjustments totaling $473,490 as included in Exhibit A of Attachment A; and 2) Authorize the transfer of $100,000 to the Housing Reserve Fund from the General Fund Contingency.

Reference: Clerk’s File No. 202-5
XII. REGIONAL ORGANIZATION REPORTS
A Councilmember assigned as a liaison to a regional organization may make a written or oral report. State law precludes the Council from commenting on, discussing, or acting on a report unless the item of business within the report is described in the agenda.

A. 22nd District Agricultural Association Community Relations Committee (Gaasterland/Martinez)
B. Clean Energy Alliance JPA (CEA) Board of Directors (Druker/Worden) C. CSA-17 Ambulance District Advisory Board (Martinez/Druker) D. Fire Governance Board, Solana Beach/Del Mar/Encinitas (Druker/Martinez) E. League of California Cities – San Diego Chapter (Worden/Martinez) F. North County Transit District (NCTD) (Quirk/Gaasterland/Druker) G. Regional Solid Waste Association (Worden/Quirk)
H. San Diego Association of Governments Board (SANDAG)
(Gaasterland/Druker/Quirk)
I. SANDAG Borders Committee (Druker)
J. SANDAG Regional Planning Committee (Gaasterland)
K. SANDAG Shoreline Preservation Working Group (Worden/Gaasterland) L. San Diego Metropolitan Wastewater JPA Advisory Committee to San Diego (Quirk/Bride)
M. San Dieguito River Valley Regional Open Space Park JPA –Executive Committee (Worden/Quirk)
N. Other Regional Organization Reports
XIII. COUNCIL COMMITTEES/SUBCOMMITTEES/COMMUNITY ORG REPORTS A Councilmember assigned as a liaison to a City Committee, Council Subcommittee OR Community Organization may make a written or oral report. State law precludes the Council from commenting on, discussing, or acting on a report, unless the item of business within the report is described in this agenda.

A. Ad-Hoc Referendum Subcommittee (Gaasterland/Druker)
B. Arts Advisory Committee (Druker/Worden)
C. Clean Water Rate Project (Druker, Quirk)
D. Del Mar Community Connections (Martinez/Quirk)
E. Del Mar Village Association (Druker/Quirk)
F. Finance Committee (Gaasterland/Quirk)
G. Housing Subcommittee (Gaasterland/Martinez)
H. Human Resources Subcommittee (Druker/Worden)
I. Legislative Subcommittee (Gaasterland/Druker)
J. Long-Term Rail Relocation Subcommittee (Gaasterland/Druker) K. Measure Q Citizen Oversight Committee (Druker/Quirk) L. Parks and Recreation Committee (Druker/Worden)
M. Planning Process Subcommittee (Druker/Gaasterland)
Del Mar City Council Regular Meeting March 7, 2022
Agenda Page 5
1050 Camino del Mar, Del Mar, CA 92014 www.delmar.ca.us N. Safe Rail Crossing and Bluff Stabilization Subcommittee (Gaasterland/Druker) O. Lagoon Committee (Quirk/Worden)
P. Sea-Level Rise Adaptation Plan Implementation Subcommittee (Gaasterland/Martinez)
Q. Shores Advisory Committee (Gaasterland/Martinez)
R. Solid Waste Procurement Services Ad-Hoc Subcommittee (Quirk/Worden) S. Sustainability Advisory Committee (DrukerWorden)
T. Traffic and Parking Advisory Committee (Martinez/Worden) U. Undergrounding Project Advisory Committee (Gaasterland/Quirk) V. Other Committee-Subcommittee Reports
XIV. UPCOMING AGENDA ITEMS
The following topics/items are tentatively planned for upcoming agendas. The title, wording, and planned date for these items are subject to change. Final agendas are posted at City Hall 72 hours in advance of the meetings and are also posted on our web site with the accompanying staff report. Please watch our web site:
www.delmar.ca.us for City Council Agendas.

March 21, 2022
Resolution to Accept Housing Acceleration Program Grant Funds (Pending SANDAG Approval 3/11) Second Reading of Ordinance to Accept CCC Modifications to NC/PC LCPA Housing Element - Annual Progress Report
Appointment(s) to the Sustainability Advisory Committee Appointment to Parks & Recreation Committee
Approval of a 5-year Contract with the San Diego County Sheriff’s Department Camino del Mar Bridge Replacement Project Mitigated Negative Declaration Information Summary (Tentative)
State Ballot Measure Restricting Voters’ Input and Local Taxing Authority - Opposition Reso (Tentative) XV. CERTIFICATION
I, Sarah Krietor, Acting City Clerk for the City of Del Mar, hereby certify that a copy of this agenda was posted at City Hall on the 2nd day of March, 2022, at approximately 4:00 p.m.
___________________________________________ 3/2/2022
Sarah Krietor, Acting City Clerk Date

CITY OF DEL MAR

CITY COUNCIL REGULAR MEETING MINUTES
FEBRUARY 22, 2022 – VIA TELECONFERENCE ONLY
1050 Camino del Mar, Del Mar California 92014
The minutes set forth the actions taken by the City Council on the matters stated. Audio/video recordings of the City Council proceedings are retained for a period of ten years, in accordance with the City's Records Retention Schedule. Audio/video recordings, as well as written materials presented to the City Council, including Red Dots (materials provided to the City Council after the agenda has published), are available on the City’s website at www.delmar.ca.us/AgendaCenter or by contacting the Administrative Services Department at (858) 755-9313.

CALL TO ORDER
Mayor Worden called the Regular Meeting to order at 4:32 p.m.

ROLL CALL

Present: Present: Mayor Dwight Worden; Deputy Mayor Tracy Martinez; Councilmembers Dave Druker, Terry Gaasterland and Dan Quirk

CITY ATTORNEY CLOSED SESSION REPORT
City Attorney Leslie Devaney reported that there were no reportable actions or recusals on the February 22, 2022 City Council Closed Session meeting. Item D was not discussed and will be renoticed for a future date.

PLEDGE OF ALLEGIANCE
Councilmember Quirk led the Pledge of Allegiance.

PUBLIC ORAL COMMUNICATIONS
Mayor Worden opened public oral and the following people spoke:
1) John Stahl
2) Camilla Rang
Mayor Worden closed the item to public comment.

CITY COUNCIL COMMENTS
Councilmember Gaasterland report on the new name, Sea Cliff Coastal Trail, for the upper bluff trail in Del Mar.

COMMUNITY ANNOUNCEMENTS
None.

CITY MANAGER’S REPORT
City Manager Ashley Jones reported that repairs at the Powerhouse Public Park public restrooms will begin today and will be completed by the end of this week. She also reported that the Friends of the Powerhouse are holding a fundraising event Saturday, March 12, 2022, to help raise much needed funds for the Powerhouse Park Tot Lot renovations.
1 March 7, 2022 Item 01
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February 22, 2022

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CONSENT CALENDAR
Acting City Clerk Sarah Krietor read the titles of the items included on the Consent Calendar.

There were no public speakers for the consent calendar items.

IT WAS MOVED BY COUNCILMEMBER DRUKER, SECONDED BY COUNCILMEMBER QUIRK TO APPROVE THE CONSENT CALENDAR ITEMS 1 THROUGH 7. (VOTE 5-0) Ayes: Mayor Worden, Deputy Mayor Martinez, and Councilmembers Druker, Gaasterland and Quirk; Noes: 0; Absent: 0; Abstain: 0.

ITEM 1: APPROVAL OF MINUTES: FEBRUARY 7, 2022 REGULAR AND SPECIAL MEETING (CLERK’S MINUTES BOOK)
Council approved the minutes, on consent.

ITEM 2: RATIFICATION OF LIST OF DEMANDS, DATED FEBRUARY 22, 2022 (CLERK’S FILE NO. 201-3)
Council approved the list of demands, on consent.

ITEM 3: WAIVER OF READING OF ORDINANCES ON AGENDA (CLERK’S FILE NO. 401-4) Council waived the reading of ordinances, on consent.

ITEM 4: FIRST AMENDMENT TO AGREEMENT WITH STEVEN SMITH LANDSCAPE, INC.

FOR AS-NEEDED LANDSCAPING SERVICES (CLERK’S FILE NO. 406-1) Council questions focused on the City’s current contract for landscaping services given the contract reductions due to the budget impacts of the COVID-19 pandemic.

Council approved the First Amendment to the Agreement between the City of Del Mar and Steven Smith Landscape, Inc. for as-needed citywide landscaping services for an additional two-year period ending March 4, 2024; and authorized the City Manager to execute the First Amendment, on consent.

ITEM 5: APPROVAL OF ADDITIONAL FUNDING FOR THE FY 2021-22 WATER, WASTEWATER, AND PAVEMENT IMPROVEMENTS PROJECT (CLERK’S FILE NO. 803-1, 907-5)
Council approved additional funding for the 2021 Water, Wastewater, and Pavement Improvements Project totaling $80,000 as further described in the agenda report, on consent.

ITEM 6: ADOPTION OF CITY COUNCIL POLICY: HOUSING IMPACT STATEMENT FOR PENDING DISCRETIONARY LAND USE DECISIONS (6TH CYCLE HOUSING ELEMENT PROGRAM 5B) (CLERK’S FILE NO. 303-1)
Council questions focused on the timing for bringing this item forward as part of the City’s 6th Cycle Housing Element and staff impact of the policy. 2 March 7, 2022 Item 01
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February 22, 2022

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Council adopted resolution 2022-14, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF DEL MAR, CALIFORNIA, ADOPTING A CITY COUNCIL POLICY

REQUIRING THE INCLUSION OF A HOUSING IMPACT STATEMENT IN AGENDA

REPORTS FOR PENDING DISCRETIONARY LAND USE AND PLANNING DECISIONS, AS NECESSARY TO IMPLEMENT THE 6TH CYCLE HOUSING ELEMENT PROGRAM 5B”, on consent.

ITEM 7: PROPOSED LETTER OF OPPOSITION TO THE CALIFORNIA PUBLIC UTILITIES COMMISSION REGARDING NET ENERGY METERING 3.0 PROCEEDING (CLERK’S FILE NO. 1001-1, 1001-3)
Council approved the submittal of a letter of opposition to the California Public Utilities Commission regarding the Net Energy Metering (NEM) 3.0 proceeding, on consent.

COUNCIL MEETING RECESS:

The City Council took a meeting recess from approximately 6:27 p.m. to 6:45 p.m.

CITY COUNCIL OTHER BUSINESS
ITEM 8: FIRE DEPARTMENT COMMUNITY RISK ASSESSMENT, STANDARDS OF COVER, AND MANAGEMENT/ADMINISTRATIVE ASSESSMENT (CLERK’S FILE NO. 1101-8) A presentation was provided by Fire Chief Mike Stein and Fitch and Associates consultant Mike Despain.

Council questions focused on tracking and metric options related to the EMS care provided by the Fire Department as it relates to care received at acute treatment facilities; whether the studies looked at the Fire Department and Cooperative Service Agreement model’s budget and cost savings opportunities; clarification on theoretical best response times compared to Del Mar’s response time; and clarification on the basis for using overlapping calls data in the assessment.

There were no public speakers for the item.

ITEM 9: CONSIDERATION OF AN EXCLUSIVE SOLID WASTE COLLECTION SERVICE FRANCHISE AGREEMENT WITH EDCO DISPOSAL CORPORATION (CLERK’S FILE NO. 406-1, 906-9)
A presentation was provided by Environmental Sustainability and Special Projects Manager Clem Brown and Dave Davis with MSW Consultants was available to answer questions.

Council questions focused on clarification on the process for switching carts if a new solid waste collection service is selected; whether drivers could be displaced as part of the recommended transition to EDCO; whether food waste bins have a secure lid; and clarification on the billing cycle transition if the City selects a new solid waste collection service.

Mayor Worden opened the item to public comment and the following people spoke:
1) Lori Somers, Waste Management
2) Steve South, EDCO
3) Alice McNally
4) Don Mosier
Mayor Worden closed the item to public comment.
3 March 7, 2022 Item 01
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February 22, 2022

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Council discussion focused on staff’s response to public comments made by Waste Management representative Lori Somers; clarification on the current and proposed franchise fee; number of trash collection drivers in Del Mar; location for disposal of organics waste by Waste Management; consideration of overall cost and environmental considerations in support of staff’s recommendation; EDCO’s proposal related to local organics recycling; and City’s time constraints for executing the agreement and beginning the Proposition 218 process.

IT WAS MOVED BY COUNCILMEMBER DRUKER, SECONDED BY COUNCILMEMBER GAASTERLAND TO APPROVE A 10-YEAR EXCLUSIVE FRANCHISE AGREEMENT WITH EDCO

DISPOSAL CORPORATION (EDCO) FOR SOLID WASTE COLLECTION SERVICES WITH A START DATE OF JULY 1, 2022, AND AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT. (VOTE 5-0)
Ayes: Mayor Worden, Deputy Mayor Martinez, and Councilmembers Druker, Gaasterland and Quirk; Noes: 0; Absent: 0; Abstain: 0.

IT WAS MOVED BY COUNCILMEMBER DRUKER, SECONDED BY COUNCILMEMBER GAASTERLAND TO ADOPT RESOLUTION 2022-15, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL MAR, CALIFORNIA, DIRECTING STAFF TO INITIATE THE PROPOSITION 218

PROCESS FOR SETTING SOLID WASTE COLLECTION SERVICE RATES, AND SETTING THE

DATE OF THE PUBLIC HEARING TO CONSIDER ALL PROTESTS AS REQUIRED BY PROPOSITION 218”, WITH SCHEDULING THE PUBLIC HEARING FOR MAY 16, 2022, TO ESTABLISH THE CITY’S SOLID WASTE COLLECTION SERVICE RATES EFFECTIVE JULY 1, 2022. (VOTE 5-0)
Ayes: Mayor Worden, Deputy Mayor Martinez, and Councilmembers Druker, Gaasterland and Quirk; Noes: 0; Absent: 0; Abstain: 0.

ITEM 10: APPROVAL OF THE 2022 LEGISLATIVE POLICY GUIDELINES AND RESOLUTION IN OPPOSITION OF STATE BALLOT INITIATIVE 21-0042A1 (CLERK’S FILE NO. 401-7, 401-8)
A brief introduction was provided by City Manager Jones and Senior Management Analyst Beth Murray was available to answer questions.

There were no public speakers for the item.

IT WAS MOVED BY COUNCILMEMBER GAASTERLAND, SECONDED BY COUNCILMEMBER DRUKER TO APPROVE THE 2022 LEGISLATIVE POLICY GUIDELINES INCLUDING THE SUGGESTED REVISIONS. (VOTE 5-0)
Ayes: Mayor Worden, Deputy Mayor Martinez, and Councilmembers Druker, Gaasterland and Quirk; Noes: 0; Absent: 0; Abstain: 0.

Council consensus was for staff to return at a future meeting with additional information regarding State Ballot Initiative 21-0042A1.
4 March 7, 2022 Item 01
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February 22, 2022

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ITEM 11: PROPOSED RESOLUTION OPPOSING CONSTRUCTION OF DEVICES THAT

COULD INTERFERE WITH NATURAL FLOW OF BEACH SAND INTO DEL MAR (CLERK’S FILE NO. 1404-1, 1404-2)
A presentation was provided by Mayor Worden and Councilmember Gaasterland.

Council questions focused on the sand bypass system north of the harbor in the City of Oceanside.

Mayor Worden opened the item to public comment and the following people spoke:
1) Mitch Silverstein
2) Patricia Louis
3) Ryan Keim, City of Oceanside Deputy Mayor
4) Bob Ashton, SOS Oceanside
5) Matt Caulfield
6) Pat Caulfield
7) Shari Mackin
Mayor Worden closed the item to public comment.

Council discussion focused on consideration to defer this item to a future meeting; City’s extensive research and consideration of groin options related to preparation of the City’s Sea Level Rise Adaptation Plan; sand retention as a regional issue and the City’s preference to have solutions generated at the regional level through the San Diego Association of Government (SANDAG) Shoreline Preservation Working Group instead of by individuals cities; and background regarding the City of Oceanside groin pilot project.

IT WAS MOVED BY COUNCILMEMBER GAASTERLAND, SECONDED BY MAYOR WORDEN TO ADOPT RESOLUTION 2022-16, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL

MAR, CALIFORNIA, EXPRESSING OPPOSITION TO THE CONSTRUCTION OF DEVICES THAT WOULD INTERFERE WITH THE NATURAL FLOW OF BEACH SAND INTO DEL MAR”, WITH AMENDMENTS DISCUSSED AT THE MEETING. (VOTE 4-1)
Ayes: Mayor Worden, Deputy Mayor Martinez, and Councilmembers Druker and Gaasterland; Noes: Councilmember Quirk; Absent: 0; Abstain: 0.

ITEM 12: PROPOSED RESOLUTION REAFFIRMING THE CITY’S POSITION ON THE

STORAGE OF SPENT NUCLEAR FUEL AT THE SAN ONOFRE NUCLEAR GENERATING STATION (CLERK’S FILE NO. 1403-4)
A presentation was provided by Mayor Worden and Councilmember Gaasterland.

Mayor Worden opened the item to public comment and the following people spoke:
1) Paul Blanch
2) Cathy Iwane
3) Bart Ziegler
4) Alice McNally
Mayor Worden closed the item to public comment.

Council questions and discussion focused on whether alternative storage location proposals in California have been considered; appreciation for the informed public speakers and other individuals who have dedicated their time to resolving this issue; the City’s history of advocacy related to the 5 March 7, 2022 Item 01
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February 22, 2022

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storage of spent nuclear fuel at the San Onofre Nuclear Generating station; and importance of this public safety and environmental issue.

IT WAS MOVED BY COUNCILMEMBER DRUKER, SECONDED BY COUNCILMEMBER GAASTERLAND TO ADOPT RESOLUTION 2022-17, “A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF DEL MAR, CALIFORNIA, REAFFIRMING THE CITY'S POSITION ON THE STORAGE OF SPENT NUCLEAR FUEL AT THE SAN ONOFRE NUCLEAR GENERATING STATION”. (VOTE 5-0)
Ayes: Mayor Worden, Deputy Mayor Martinez, and Councilmembers Druker, Gaasterland and Quirk; Noes: 0; Absent: 0; Abstain: 0.

REGIONAL AND COUNCIL COMMITTEES/SUBCOMMITTEES/COMMUNITY ORGANIZATION

REPORTS
Council representatives reported on 22nd District Agricultural Association – Community Relations Committee, Parks & Recreation Committee, Lagoon Committee, Traffic and Parking Advisory Committee, and North County Coastal District.

ADJOURNMENT
Mayor Worden adjourned the meeting at 8:27 p.m.

Sarah Krietor, Acting City Clerk
6 March 7, 2022 Item 01

DEL MAR CITY COUNCIL

SPECIAL MEETING MINUTES
FEBRUARY 22, 2022
Via Teleconference
1050 Camino del Mar, Del Mar, California

CALL TO ORDER
Mayor Worden called the meeting to order at 4:30 P.M.

ROLL CALL

Present: Mayor Dwight Worden; Deputy Mayor Tracy Martinez; Councilmembers Dave Druker, Terry Gaasterland and Dan Quirk

PUBLIC COMMENT
The Mayor opened public comment for items on the agenda and Shirli Weiss spoke regarding Items A and B.

CLOSED SESSION
A) Conference with Legal Counsel – Existing Litigation
North County Transit District (NCTD) – Verified Petition for Declaratory Order Surface Transportation Board Finance Docket No. 36433
Authority: Government Code Section 54956.9(d)(1)
Reportable Action: None.

B) Conference with Legal Counsel - Significant Exposure to Litigation Number of Cases: One
Description: Liabilities related to NCTD right-of-way fencing Authority: Government Code Section 54956.9(b)
Reportable Action: None.

C) Liability Claim
Claimants: Keith & Sally Palmer
Agency Claimed Against: City of Del Mar
Authority: Government Code Section 54956.95
Reportable Action: None.

D) Real Property Negotiations
Property: San Dieguito Drive from Oribia Road to Racetrack View Drive Negotiating Parties: City of Del Mar and Del Mar Hillside Community Association Under Negotiation: Potential dedication and improvement of the road and terms and conditions of the same
Authority: Government Code Section 54956.8
Reportable Action: Council did not discuss this item and it will be re-noticed for conference with legal counsel at a future closed session meeting.
7 March 7, 2022 Item 01

SPECIAL MEETING MINUTES
February 22, 2022

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ADJOURNMENT
Mayor Worden adjourned the meeting at 4:28 P.M.

Sarah Krietor, Acting City Clerk
8 March 7, 2022 Item 01

DEL MAR CITY COUNCIL

SPECIAL MEETING MINUTES
FEBRUARY 28, 2022
Via Teleconference
1050 Camino del Mar, Del Mar, California

CALL TO ORDER
Mayor Worden called the meeting to order at 4:32 P.M.

ROLL CALL

Present: Mayor Dwight Worden; Deputy Mayor Tracy Martinez; Councilmembers Dave Druker, Terry Gaasterland and Dan Quirk

CLOSED SESSION
Assistant City Attorney William Pate reported that there were no reportable actions or recusals on the February 28, 2022 City Council Closed Session meeting.

CITY COUNCIL BUSINESS
ITEM 1: CONSIDERATION OF A LICENSE AGREEMENT BETWEEN THE CITY OF DEL

MAR AND THE NORTH COUNTY TRANSIT DISTRICT (NCTD) FOR PUBLIC USE OF NCTD RIGHT OF WAY (CLERK’S FILE NO. 406-1, 1506-20)
A presentation was provided by City Manager Ashley Jones. Assistant City Attorney Pate was available to answer questions.

Mayor Worden opened the item to public comment and the following people spoke:
1) John Stahl
2) Camilla Rang
3) Al Tarkington
4) Steve Tarkington
5) Kristin Brinner, Surfrider Foundation
6) Steven Crowe
7) Karen Lare
8) Mike Maier
9) Shawn Cane
10) Cathy Iwane
11) Frank Stonebanks
12) Liz Janapol
13) Laura DeMarco
14) Nick H.

Mayor Worden closed the item to public comment.

Council questions focused clarification of the California Environmental Quality Act (CEQA) exemption described in the agenda report; clarification on the timeline for the discussions regarding the proposed License Agreement (Agreement); whether the Agreement precludes the public or other entities from filing suits against North County Transit District (NCTD); whether all Councilmember suggested edits to the Agreement were accepted by NCTD; whether the Agreement applies to future projects or expansion rights, such as a double tracking project; and whether NCTD declined the City’s proposal to totally eliminate or further reduce the height of the fencing that may be installed in the License Area by NCTD. 9 March 7, 2022 Item 01

SPECIAL CITY COUNCIL MEETING MINUTES
February 28, 2022

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Council discussion focused on expressing appreciation for the public speakers and their efforts on this important issue; appreciation for City Manager Jones and Assistant City Attorney Pate for their efforts representing the City and negotiating the proposed Agreement; City’s opposition to fencing on the bluff; consideration of the City’s options if the City Council declines to sign the proposed Agreement; NCTD fencing proposal and the proposed Agreement as they relate to rail safety on the bluff; whether the City can prevent fencing on bluff outside of the proposed Agreement; San Diego Association of Government (SANDAG) long-term plan to remove the train tracks from the bluff; consideration of potential outcomes of Surface Transportation Board (STB) federal consistency review and anticipation of actions California Coastal Commission (CCC) may take related to NCTD’s fencing proposal; whether the City has the legal ability to stop NCTD fencing along the bluff; NCTD’s rational for upper bluff fencing; public’s legal right to access the bluff being established for the first time under the proposed Agreement; demarcation fencing installed by the City at North Bluff; timing for completion and related deliverables from the Coastal Connections Study; City’s desire to limit fencing to where train strikes actually occur; and Del Mar residents historic use of upper bluff walking trails.

IT WAS MOVED BY MAYOR WORDEN, SECONDED BY COUNCILMEMBER DRUKER TO

APPROVE A LICENSE AGREEMENT WITH NORTH COUNTY TRANSIT DISTRICT (NCTD)

ALLOWING FOR PUBLIC USE OF THE DEL MAR UPPER BLUFF TRAIL AREA LOCATED WITHIN THE NCTD RIGHT OF WAY. (VOTE 2-3) MOTION FAILED
Ayes: Mayor Worden and Councilmembers Druker Noes: Deputy Mayor Martinez, Councilmembers Gaasterland and Quirk; Absent: 0; Abstain: 0.

ADJOURNMENT
Mayor Worden adjourned the meeting at 6:15 P.M.

Sarah Krietor, Acting City Clerk
10 March 7, 2022 Item 01

DEL MAR CITY COUNCIL

SPECIAL MEETING MINUTES
FEBRUARY 28, 2022
Via Teleconference
1050 Camino del Mar, Del Mar, California

CALL TO ORDER
Mayor Worden called the meeting to order at 2:45 P.M.

ROLL CALL

Present: Mayor Dwight Worden; Deputy Mayor Tracy Martinez; Councilmembers Dave Druker, Terry Gaasterland and Dan Quirk

C) Real Property Negotiations
Property: San Dieguito Drive from Oribia Road to Racetrack View Drive Negotiating Parties: City of Del Mar and Del Mar Hillside Community Association Under Negotiation: Potential dedication and improvement of the road and terms and conditions of the same
Authority: Government Code Section 54956.8
Reportable Action: None.

ADJOURNMENT
Mayor Worden adjourned the meeting at 4:19 P.M.

Sarah Krietor, Acting City Clerk
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City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:

TO: Honorable Mayor and City Council Members
FROM: Sarah Krietor, Management Analyst/Acting City Clerk Via Ashley Jones, City Manager
DATE: March 7, 2022
SUBJECT: Continuation of Remote Public Meetings in Compliance with Government Code Section 54953 (Assembly Bill 361)
REQUESTED ACTION/RECOMMENDATION:

Staff recommends that the City Council adopt a Resolution (Attachment A) making the finding required by Government Code 54953 related to Assembly Bill 361 (AB 361) to continue with remote public meetings for the next thirty (30) days during the local emergency declared in response to the COVID-19 global pandemic.

DISCUSSION/ANALYSIS:

On September 16, 2021, the Governor signed Assembly Bill 361 (AB 361), which waives certain provisions of the Brown Act and allows for continued remote public meetings during the pandemic if specific findings are made by the City Council. Under AB 361, in order to hold remote public meetings during the declared state of emergency due to the COVID-19 pandemic, the City Council must adopt a Resolution (Attachment A) making at least one of the two findings: 1) state or local officials have recommended measures to promote social distancing; and/or 2) that meeting in-person would pose an imminent risk to the health and safety of attendees. Additionally, the City Council will need to reevaluate and readopt this Resolution every 30 days, which can be accomplished on the consent agenda.

On October 4, 2021, the City Council adopted Resolution 2021-45 making the finding that meeting in-person would pose an imminent risk to the health and safety of attendees as the current state and local health orders do not explicitly require or promote social distancing at this time. The City Council reconsidered the circumstances of the state of emergency and adopted Resolution 2021-46 on November 1, 2021; Resolution 2021-49 on November 19, 2021; Resolution 2021-53 on December 13, 2021; Resolution 2022-01 on January 10, 2022; and most recently Resolution 2022-11 was adopted February 7, 2022, to continue with remote meetings through March 9, 2022. These resolutions apply to all City public meetings including the City Council, Design Review Board, Planning Commission, and City advisory committees.
1 March 7, 2022 Item 04
City Council Agenda Report
Continuation of Remote Public Meetings in Compliance with AB361 March 7, 2022

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In order for the City Council, Planning Commission, Design Review Board and City advisory committees to continue to meet remotely past March 9, 2022, the City Council must reconsider the circumstances of the state of emergency and determined that meeting in-person would directly impact the ability of the members and the public to meet safely in person. As such, staff recommends that the City Council adopt a Resolution (Attachment A) allowing the City Council, Design Review Board, Planning Commission and City advisory committees to continue to meet remotely for the next thirty (30) days in accordance with the provisions of Government Code Section 54953 (AB361).

PRIOR CITY COUNCIL REVIEW:

The City Council declared a local emergency in response to the COVID-19 pandemic on March 14, 2020 and has been meeting remotely since that time. The City Council adopted Resolution 2021-45 on October 4, 2021, Resolution 2021-46 on November 1, 2021, Resolution 2021-49 on November 19, 2021, Resolution 2021-53 on December 13, 2021, Resolution 2022-01 on January 10, 2022, and Resolution 2022-11 on February 7, 2022 allowing for the continuation of remote public meetings under the provisions established by AB361.

FISCAL IMPACT:

There is no fiscal impact or action to be taken related to this agenda item.

ENVIRONMENTAL IMPACT:

The proposed City Council action does not constitute a “project” under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Section 15378 because it will not have a potential to result in a direct or indirect physical change in the environment and is, therefore, not subject to CEQA. No further action under CEQA is required.

NEXUS TO CITY COUNCIL GOALS AND PRIORITIES:

This is an operational item and not specifically related to the identified Council goals and priorities for FY 2021-22.

ATTACHMENTS:

Attachment A – Resolution Related to AB361 Thirty (30) Day Continuance 2 March 7, 2022 Item 04
RESOLUTION NO. 2022-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL

MAR, CALIFORNIA, MAKING FINDINGS REQUIRED UNDER
GOVERNMENT CODE SECTION 54953 RELATED TO
ASSEMBLY BILL 361 IN ORDER TO CONTINUE THE USE OF

TELECONFERENCE OR A REMOTE MEETING PLATFORM TO

FACILITATE REMOTE PUBLIC MEETINGS
WHEREAS, there exists the COVID-19 virus, which represents a serious public health threat; and
WHEREAS, on February 14, 2020, the San Diego County Health Officer declared a Local Health Emergency as a result of the COVID-19 virus; which was subsequently ratified by the Board of Supervisors on February 19, 2020; and WHEREAS, on March 4, 2020, the State of California declared a State of Emergency as a result of the COVID-19 virus; and
WHEREAS, on March 13, 2020, the President of the United States declared a national emergency as a result of the COVID-19 virus; and WHEREAS, on March 14, 2020, the City of Del Mar adopted Resolution 2020-12 declaring a local emergency related to COVID-19 and has been meeting remotely since that time in accordance with multiple Executive Orders issued by the Governor waiving certain provisions of the Brown Act; and
WHEREAS, on September 16, 2021, the Governor signed Assembly Bill 361 (AB361) waiving certain provisions of the Brown Act during declared states of emergency and allowing for the continuation of remote public meetings if specific findings are made; and
WHEREAS, on October 4, 2021, the City Council adopted Resolution 2021-45 making findings in accordance with Assembly Bill 361, thereby waiving specific provisions of the Brown Act in order to continue the use of teleconference or a remote meeting platform to facilitate remote public meetings; and
WHEREAS, the City Council reconsidered the circumstances of the state of emergency, determined that meeting in person would directly impact the ability of the members and the public to meet safely and adopted Resolution 2021-46 on November 1, 2021; Resolution 2021-49 on November 19, 2021; Resolution 2021-53 on December 13; 2021; Resolution 2022-01 on January 10, 2022; and Resolution 2022-11 on February 7, 2022; and
3 March 7, 2022 Item 04
Resolution No. 2022-XX

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WHEREAS, on March 7, 2022, the City Council reconsidered the circumstances of the state of emergency and determined that meeting in person would directly impact the ability of the members and the public to meet safely.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Del Mar that the City of Del Mar may continue to use teleconference or a remote meeting platform for the next thirty (30) days in accordance with AB361 based on the following findings:

1. The City Council has held public meetings during the declared emergency related to the COVID-19 pandemic and has determined by a majority vote of the City Council that as a result of the COVID-19 global pandemic, meeting in person would present imminent risks to the health or safety of members and attendees.

BE IT FURTHER RESOLVED by the City Council that this resolution applies to the City Council, Design Review Board, Planning Commission, and all City advisory committees.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Del Mar, California, at the Regular meeting held this 7th day of March 2022. ___________________________
Dwight Worden, Mayor
City of Del Mar
APPROVED AS TO FORM:
________________________
Leslie E. Devaney, City Attorney
City of Del Mar
4 March 7, 2022 Item 04
Resolution No. 2022-XX

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ATTEST AND CERTIFICATION:

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

CITY OF DEL MAR
I, SARAH KRIETOR, Acting City Clerk of the City of Del Mar, California, DOES HEREBY CERTIFY, that the foregoing is a true and correct copy of Resolution No. 2022- XX, adopted by the City Council of the City of Del Mar, California at a Regular Meeting held the 7th day of March 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________________
Sarah Krietor, Acting City Clerk
City of Del Mar
5 March 7, 2022 Item 04
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:

TO: Honorable Mayor and City Council Members
FROM: Amanda Lee, Principal Planner
Karen Brindley, Planning & Community Development Director Via Ashley Jones, City Manager
DATE: March 7, 2022
SUBJECT: Introduction of an Ordinance to Accept Modifications to the North Commercial/Professional Commercial (NC/PC) Local Coastal Program Amendment Pursuant to Coastal Commission Action on February 10, 2022 REQUESTED ACTION/RECOMMENDATION:

Staff recommends the City Council introduce an Ordinance (Attachment A) to accept the modifications required for final certification of the NC/PC Local Coastal Program Amendment (LCPA) per action taken by the California Coastal Commission (CCC) on February 10, 2022, granting conditional approval.

EXECUTIVE SUMMARY:

On February 10, 2022, the CCC voted unanimously to conditionally certify the City’s NC/PC LCPA. The CCC modifications (Attachment D), as amended through coordination efforts between CCC staff and City staff, incorporate clarifications that are consistent with the City’s General Plan and the certified LCP. This includes a requirement that, as a condition of permit approval in the NC Zone, the applicant/owner of a proposed multi-unit housing project record disclosure statements relating to flood risk and projected sea level rise. In order to obtain final CCC certification, which is necessary to comply with State housing law and the City’s prior housing commitments adopted within the 5th Cycle and 6 th Cycle Housing Elements, the City must accept the complete package of CCC modifications as reflected in the proposed Ordinance (Attachment A).

The CCC staff report and report Addendum (that reflects CCC’s modifications as approved on February 10, 2022) are available via the CCC web page (see ItemTH13d):
https://www.coastal.ca.gov/meetings/agenda/#/2022/2
The modifications amend prospective PC Zone Amendment/LCPA Ordinance No. 971 (Attachment B) and prospective NC Zone Amendment/LCPA Ordinance No. 973 (Attachment C). The two previously adopted ordinances, in combination with the pending ordinance, will take effect only if the City accepts the complete package of modifications 1 March 7, 2022 Item 05
City Council Agenda Report
Acceptance of CCC Mods to NC/PC LCPA
March 7, 2022

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required by CCC for final certification. In accordance with Coastal Act requirements, the City has up to six months to adopt the modifications as conditionally certified by CCC and submit for final certification. Once the CCC issues final LCPA certification, the LCPA will become the standard of review for proposed housing development in the NC and PC zones. All applicable ordinances adopted by the City and certified by the Coastal Commission will become effective immediately on the date the Coastal Commission takes action to grant final certification.

DISCUSSION/ANALYSIS:

The City has a limited number of sites available that can accommodate future multiple dwelling unit development. Potential housing production within the NC and PC commercial zones is a housing strategy that has been in process for over a decade and one that will help the City further fair housing in accordance with State housing law requirements. Completion of the NC/PC LCPA is a critical component within the City’s 6 th Cycle Housing Element because it ensures the City will maintain the full capacity of sites needed to meet its Regional Housing Needs Allocation (RHNA) for lower income households, which is necessary for compliance with State housing law.

CCC certification review of the NC/PC LCPA has been in process since November 2020.

CCC staff and City staff worked together in an effort to harmonize State housing law and the Coastal Act. While Del Mar had already taken necessary steps for protection of coastal resources, CCC determined it was necessary to require certain modifications to the City’s adopted NC and PC ordinances in order to clarify expectations for future review and implementation of multiple dwelling unit housing projects.

It is important to note that future proposed housing development in the NC and PC Zones would be required to comply with the certified LCP as amended per the NC/PC LCPA; and that any permit applications deemed complete prior to the effective date of the ordinances will not be subject to the new NC/PC LCPA requirements.

Attachment D includes the strikeout-underline text for the five CCC modifications required per the February 10, 2022 action.
 CCC Modification #2 is the most significant of the five required modifications. It added clarifying edits, as well as new requirements applicable to multiple dwelling unit development within the NC Zone, including:
o New disclosure requirements to address projected sea level rise and flood risk;
o Clarification of the expected scope of site-specific permit review and disclosure to address projected sea level rise; and
2 March 7, 2022 Item 05
City Council Agenda Report
Acceptance of CCC Mods to NC/PC LCPA
March 7, 2022

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o Incorporation of a new LCP Land Use Plan exhibit (Ordinance Exhibit A) reflecting the existing General Plan prohibition of multiple dwelling unit development on six lots in the NC zone (6.78 acres of approximately 16 acres total) located in proximity to the San Dieguito Lagoon.  CCC Modifications #1 and #5 incorporate clarifying changes into the existing LCP Land Use Plan and Implementation Plan exhibits that identify the “Land Use Designations/Allowed Uses List” and “Zone Designations/Allowed Uses List” as shown in the Ordinance Exhibits B and C respectively.
 CCC Modifications #3 and #4 delete a reference to Del Mar Municipal Code Chapter 24.21 with the NC Zone and PC Zone regulations because Chapter 24.21 is not a part of the City’s certified LCP. This change was non-substantive, as it did not modify the adopted requirement that “all residential development or conversions shall provide affordable housing.”
The modifications amend prospective PC Zone Amendment/LCPA Ordinance No. 971 (Attachment B) and prospective NC Zone Amendment/LCPA Ordinance No. 973 (Attachment C). The two previously adopted ordinances, in combination with the pending ordinance, will take effect only if the City accepts the complete package of modifications required by CCC for final certification.

The City’s 6th Cycle Housing Element is currently in process of a separate State certification review with the California Department of Housing and Community Development (HCD); and as previously identified, the NC/PC LCPA is a critical component to ensure the City will have adequate housing sites for the 6th Cycle. It is City staff’s understanding that HCD is waiting on City Council action to complete processing of the NC/PC LCPA prior to completion of their certification review for the City of Del Mar.

HOUSING IMPACT:

City Council adoption and CCC certification of the subject ordinances is necessary to implement Programs 1A and 1B in the 6th Cycle Housing Element that covers the planning period years 2021-2029. More specifically, the requested action is necessary for the City to maintain adequate sites at a density of 20 dwelling units per acre in order to meet the RHNA for lower income households in accordance with the 6th Cycle Housing Element.

The Housing Element relies on the NC and PC zones to create opportunities for multiple dwelling unit housing, including units for lower income households, as follows:
• 3 lower income units are projected for the PC zone (on two of the four total lots) • 32 lower income units are projected for the NC zone (on nine of sixteen total lots) A City Council decision to not proceed with introduction of the ordinance per the requested action would cause the City to have a shortfall of adequate sites for the 6th Cycle Housing 3 March 7, 2022 Item 05
City Council Agenda Report
Acceptance of CCC Mods to NC/PC LCPA
March 7, 2022

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Element and would trigger the “no net loss provisions” per State law. As a result, within 180 days of a decision that creates a shortfall of adequate sites, the City would need to identify an equivalent number of replacement sites to meet its RHNA. Based on the prior analysis done in preparation for the 6th Cycle Housing Element, the replacement sites would most likely need to include rezoning a combination of vacant parcels on the North Bluff (south of Border Avenue and west of Camino del Mar). Further, any replacement sites selected by the City Council would need to be rezoned to allow a density of 20-25 dwelling units per acre and development of housing “by right” as a penalty imposed pursuant to State housing law since the replacement sites needed for sufficient housing capacity would have to be created and relied upon during the current housing cycle (6th Cycle).

FISCAL IMPACT:

There is no fiscal impact associated with this agenda item.

ENVIRONMENTAL IMPACT:

Pursuant to the California Environmental Quality Act (CEQA), the proposed action has been the subject of prior environmental analysis and is consistent with the City Council’s prior determinations as the proposed action will not have a potential to result in a direct or indirect physical change in the environment. This includes action by the City Council on September 8, 2020, adopting Resolution 2020-47 that will apply to future proposed housing projects as covered by PC Zone General Plan Amendment Resolution 2020-48 (adopted September 8, 2020), PC Zoning Ordinance 971 (adopted September 21, 2020), NC Zone General Plan Amendment Resolution 2021-12 (adopted March 15, 2021), and NC Zoning Ordinance 973 (adopted October 19, 2020). The Council action on September 8, 2020 specifically included: 1) certifying a Final Program Environmental Impact Report (PEIR) for the Professional Commercial Zoning and North Commercial Zoning Code Amendments (SCH #2019029058) that analyzes and discloses the known potential impacts associated with the land use plan and code amendments; and 2) adopting a Mitigation, Monitoring, and Reporting Program (MMRP) that identifies a mitigation framework for future proposed housing projects in the NC Zone and PC Zone.

The prior determinations referenced also include action by the City Council on October 5, 2020, adopting Resolution 2020-52 for the 6th Cycle Housing Element Update certifying a Final PEIR (SCH No. 2020029064) and adopting a MMRP, which will apply to future proposed housing projects covered by Resolution 2020-48 (adopted September 8, 2020), Ordinance 971 (adopted September 21, 2020), Resolution 2021-12 (adopted March 15, 2021), and Ordinance 973 (adopted October 19, 2020). No new or substantially greater impacts would result from implementation of the LCPAs required per the 5th Cycle Housing Element Programs 2E (NC Zone) and 2F (PC Zone) or the 6th Cycle Housing Element Programs 1A (NC Zone) and 1B (PC Zone). As such, pursuant to CEQA Guidelines Sections 15162 and 15163, and based on the review of the entire record, 4 March 7, 2022 Item 05
City Council Agenda Report
Acceptance of CCC Mods to NC/PC LCPA
March 7, 2022

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including without limitation the Final PEIRs, the proposed action does not require further environmental review:
 Final 6th Cycle PEIR:
www.delmar.ca.us/DocumentCenter/View/7171/Final-PEIR-91020  Final NC/PC PEIR:
www.delmar.ca.us/Archive.aspx?ADID=1428
NEXUS TO CITY COUNCIL GOALS AND PRIORITIES:

The NC/PC LCPA is a City Council priority to complete required housing programs included in the City’s 5
th Cycle and 6th Cycle Housing Elements.

ATTACHMENTS:

Attachment A – Proposed Ordinance Accepting CCC Modifications Attachment B – Adopted Ordinance 971 (PC)
Attachment C – Adopted Ordinance 973 (NC)
Attachment D – Final CCC Modifications per February 10, 2022 CCC Action 5 March 7, 2022 Item 05
ORDINANCE NO. ____

AN ORDINANCE OF THE CITY OF DEL MAR, CALIFORNIA,

AMENDING DEL MAR MUNICIPAL CODE (DMMC) CHAPTER

30.24 (NORTH COMMERCIAL ZONE) AS ADOPTED BY
PROSPECTIVE ORDINANCE NO. 973; AMENDING DMMC
CHAPTER 30.25 (PROFESSIONAL COMMERCIAL ZONE) AS
ADOPTED BY PROSPECTIVE ORDINANCE NO. 971;
AMENDING THE CITY’S CERTIFIED LOCAL COASTAL

PROGRAM (LCP) BY ADDING A NEW EXHIBIT TO THE LCP
LAND USE PLAN TITLED “LOCATIONS IN NC ZONE WHERE
MULTIPLE DWELLING UNIT DEVELOPMENT IS PROHIBITED”;
AMENDING THE “LAND USE DESIGNATIONS/ALLOWED USES”
LIST IN THE LCP LAND USE PLAN MAP; AND AMENDING THE
“ZONE DESIGNATIONS/ALLOWED USES” LIST IN THE LCP

IMPLEMENTATION PLAN ALL RELATING TO AMENDMENTS

REQUIRED BY THE CALIFORNIA COASTAL COMMISSION
(CCC) AS A CONDITION OF APPROVAL FOR THE CITY TO

OBTAIN FINAL CERTIFICATION OF THE SUBMITTED NC/PC

LOCAL COASTAL PROGRAM AMENDMENT (LCPA) IN ORDER
FOR ORDINANCES NO. 971 (PC ZONE) AND NO. 973 (NC

ZONE) TO TAKE EFFECT IN THE CITY OF DEL MAR
WHEREAS, the City of Del Mar needs to obtain CCC certification of the NC/PC LCPA for compliance with State housing law and the City’s prior housing commitments for the 5th Cycle (years 2013-2021) and 6th Cycle (years 2021-2029) Housing Elements; and
WHEREAS, on September 8, 2020, the City Council adopted Resolution 2020-48 amending the General Plan land use designation applicable to the Professional Commercial (PC) Zone to implement the City’s 5th Cycle Housing Element Program 2F; and
WHEREAS, on September 21, 2020, the City Council adopted Ordinance No. 971 amending the PC Zone in the Del Mar Municipal Code (DMMC) and certified LCP to implement the City’s 5th Cycle Housing Element Program 2F; and WHEREAS, on October 19, 2020, the City Council adopted Ordinance No. 973 amending the North Commercial (NC) Zone in the DMMC and certified LCP to implement the City’s 5th Cycle Housing Element Program 2E; and
WHEREAS, on March 15, 2021, the City Council adopted Resolution 2021-12 amending the General Plan land use designation applicable to the NC Zone to implement the City’s 5th Cycle Housing Element Program 2E; and
WHEREAS, on March 25, 2021, the City Council adopted the 6th Cycle Housing Element including Housing Element Programs 1A (NC Zone) and 1B (PC Zone), which require the City obtain final certification approval from the CCC in order to maintain adequate sites in the NC Zone and PC Zone (as adopted by the City Council during the 6 March 7, 2022 Item 05
Ordinance No. ___

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5 th Cycle) to meet a portion of the City’s assigned 6th Cycle Regional Housing Needs Assessment (RHNA) allocation for lower income households; and WHEREAS, in September 2021, an agreement was reached to withdraw a Referendum that was filed on November 18, 2020, against the NC Zone Amendment/LCPA (Ordinance No. 973); and
WHEREAS, on December 13, 2021, the City Council re-adopted the 6th Cycle Housing Element to incorporate modifications required by the California Department of Housing and Community Development (HCD); and
WHEREAS, the adopted 6th Cycle Housing Element identifies June 2022 as the deadline for the City to obtain CCC final certification and complete 6th Cycle Housing Element Programs 1A and 1B in compliance with State housing law; and WHEREAS, on February 10, 2022, the CCC conditionally certified the NC/PC LCPA for Ordinances No. 971 and No. 973 on the condition that the City Council accept the required CCC modifications via ordinance and submit to CCC for final certification; and
WHEREAS, the City Council is required, pursuant to the Coastal Act, to adopt an ordinance accepting the required CCC modifications within 6 months of CCC conditional certification (by August 2022) in order to obtain CCC final certification prior to expiration of the submitted NC/PC LCPA application; and
WHEREAS, the required CCC modifications have been incorporated within this Ordinance; and
WHEREAS, pursuant to the California Environmental Quality Act (CEQA), the proposed action has been the subject of prior environmental analysis and is consistent with the City Council’s prior determinations as it will not have a potential to result in a direct or indirect physical change in the environment; no new or substantially greater impacts would result from implementation of the LCPA; and as such, pursuant to CEQA Guidelines Sections 15162 and 15163, the proposed action does not require further environmental review.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Del Mar, California, does hereby ordain as follows:

SECTION ONE:

That DMMC Section 30.24.030, applicable to the NC Zone, is amended to read as follows:

No changes to sub-sections A-B
7 March 7, 2022 Item 05
Ordinance No. ___

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C. Multiple dwelling unit residential up to a density of 20 dwelling units per acre subject to the following:

1. Proposed projects shall be consistent with the certified Local Coastal Program.

2. The density allowance of 20 dwelling units per acre may not be located on parcels adjacent to the San Dieguito River and Lagoon as depicted in the certified LCP Land Use Exhibit titled “Locations in NC Zone Where Multiple Dwelling Unit Development is Prohibited”.

3. During development permit review, the City shall consider the best available science on sea level rise projections (such as the California State Sea Level Rise Guidance (OPC 2018) and the table for La Jolla in Appendix G of the Coastal Commission’s 2018 Sea Level Rise Policy Guidance), the status of associated adaptation measures (planned and/or implemented), and analysis of how those adaptation measures minimize projected flood risk.

This should include consideration of how projected sea level rise and flooding could affect future provision of services to the site; whether the boundary between public land (tidelands) and private land is projected to shift onto the subject project with rising seas; whether the creation of new lots via subdivision should be limited; and whether additional adaptation strategies should be required as a condition of permit approval to address sea level rise and flooding consistent with the Coastal Act and certified LCP.

Page 4 of 7 ends

rights under Coastal Act Section 30235 and related LCP
policies to hard shoreline armoring to protect the
development.
c. Where necessary to ensure coastal resource protection and compliance with the Coastal Act based on the site-specific context, the notice required per Section 30.24.030(C)(4)(b) shall also reflect the following:
i. That sea level rise and flooding could render it difficult or impossible to provide services to the site.
ii. That the boundary between public land (tidelands) and private land may shift with rising seas and the development approval does not permit encroachment onto public trust land.
iii. That additional adaptation strategies may be required in the future to address sea level rise and flooding consistent with the Coastal Act and certified LCP.
d. The permittee shall acknowledge as a condition of permit approval that while the approved development meets all safety requirements applicable at the time of approval, the development may be required to be removed or relocated in accordance with the certified LCP if the Building Official determines the development becomes unsafe for occupancy due to future flood hazard conditions.

SECTION TWO:

That DMMC Section 30.24.070(A), applicable to the NC Zone, is amended to read as follows:

A. Density: Up to a maximum of 20 dwelling units per acre

1. All residential development or conversions shall provide affordable housing.

2. [No change]
SECTION THREE:

That DMMC Section 30.25.070(A), applicable to the PC Zone, is amended to read as follows:

A. Density: Up to a maximum of 20 dwelling units per acre

1. All residential development or conversions shall provide affordable housing.

2. [No change]
9 March 7, 2022 Item 05
Ordinance No. ___

Page 5 of 7 ends

SECTION FOUR:

That “Exhibit A” to this Ordinance titled “Locations in NC Zone Where Multiple Dwelling Unit Development is Prohibited” is hereby adopted and shall be incorporated into the certified LCP Land Use Plan.

SECTION FIVE:

That “Exhibit B” to this Ordinance, amending the existing list of Land Use Designations/Allowed Uses within the certified LCP Land Use Plan, is hereby adopted and shall replace the existing Exhibit in the certified LCP Land Use Plan.

SECTION SIX:

That “Exhibit C” to this Ordinance, amending the existing list of Zone Designations/Allowed Uses within the certified LCP Implementation Plan, is hereby adopted and shall replace the existing Map Exhibit in the certified LCP Implementation Plan.

SECTION SEVEN:

Pursuant to the California Environmental Quality Act (CEQA), the proposed action has been the subject of prior environmental analysis and is consistent with the City Council’s prior determinations as it will not have a potential to result in a direct or indirect physical change in the environment. This includes action by the City Council on September 8, 2020, adopting Resolution 2020-47 that will apply to future housing development as covered by PC Zone General Plan Amendment Resolution 2020-48 (adopted September 8, 2020), PC Zoning Ordinance 971 (adopted September 21, 2020), NC Zone General Plan Amendment Resolution 2021-12 (adopted March 15, 2021), and NC Zoning Ordinance 973 (adopted October 19, 2020). The Council action on September 8, 2020 specifically included: 1) certifying a Final Program Environmental Impact Report (PEIR) for the Professional Commercial Zoning and North Commercial Zoning Code Amendments (SCH #2019029058) that analyzes and discloses the known potential impacts associated with the land use plan and code amendments; and 2) adopting a Mitigation, Monitoring, and Reporting Program (MMRP) that identifies a mitigation framework for future housing development in the NC Zone and PC Zone.

It also includes action by the City Council on October 5, 2020, adopting Resolution 2020- 52 for the 6th Cycle Housing Element Update certifying a Final PEIR (SCH No. 2020029064) and adopting a MMRP, which will apply to future housing development covered by Resolution 2020-48 (adopted September 8, 2020), Ordinance 971 (adopted September 21, 2020), Resolution 2021-12 (adopted March 15, 2021), and Ordinance 973 (adopted October 19, 2020). No new or substantially greater impacts would result from implementation of the LCPAs required per the 5th Cycle Housing Element Programs 2E (NC Zone) and 2F (PC Zone) or the 6th Cycle Housing Element Programs 1A (NC Zone) and 1B (PC Zone). As such, pursuant to CEQA Guidelines Sections 15162 and 15163, and based on the review of the entire record, including without limitation the Final PEIRs, the proposed action does not require further environmental review. 10 March 7, 2022 Item 05
Ordinance No. ___

Page 6 of 7 ends

SECTION EIGHT:

This Ordinance was introduced by the City Council on March 7, 2022.

SECTION NINE:

The City Clerk is directed to prepare and have published a summary of this Ordinance no less than five days prior to the consideration of its adoption and again within 15 days following adoption indicating votes cast.

SECTION TEN:

Upon adoption, the Ordinance will be submitted to the California Coastal Commission for final certification as a Local Coastal Program Amendment. The Ordinance will take effect and be in force on the date that the Coastal Commission takes final action to unconditionally certify the Local Coastal Program Amendment.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council held on the 21st day of March, 2022.
______________________________
Dwight Worden, Mayor
City of Del Mar
APPROVED AS TO FORM:
____________________________
Leslie E. Devaney, City Attorney
City of Del Mar
11 March 7, 2022 Item 05
Ordinance No. ___

Page 7 of 7 ends

ATTEST AND CERTIFICATION

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

CITY OF DEL MAR
I, SARAH KRIETOR, Acting City Clerk of the City of Del Mar, California, DO HEREBY CERTIFY, that the foregoing is a true and correct copy of Ordinance No. ____, which has been published pursuant to law, and adopted by the City Council of the City of Del Mar, California, at a Regular Meeting held the 21st day of March, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________________
Sarah Krietor, Acting City Clerk
City of Del Mar
12 March 7, 2022 Item 05
ORDINANCE NO. 971

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DEL

MAR, CALIFORNIA, AMENDING THE DEL MAR MUNICIPAL
CODE CHAPTER 30.25 AND THE CITY’S CERTIFIED LOCAL
COASTAL PROGRAM CONSISTENT WITH PROGRAM 2-F
REQUIRED BY THE CITY’S EXISTING CERTIFIED HOUSING
ELEMENT RELATING TO A TOTAL OF 4 EXISTING PARCELS

LOCATED IN THE PROFESSIONAL COMMERCIAL ZONE IN

THE CITY OF DEL MAR, CALIFORNIA
WHEREAS, the Housing Element is a required component of the City’s Community Plan per State law; and
WHEREAS, the City’s existing certified Housing Element requires implementation of Program 2-F relating to the Professional Commercial Zone that requires the City amend its Community Plan, Del Mar Municipal Code (Zoning) Chapter 30.25, and Local Coastal Program to add residential as an allowed primary use up to a density of 20 dwelling units per acre; and
WHEREAS, 20 dwelling units per acre is the density required by the Housing Element because, per the State, it is the minimum density that is feasible to support the development of affordable housing in a small jurisdiction the size of Del Mar; and WHEREAS, “affordable housing” refers to units that are restricted for rent to households with an annual household income no greater than 80 percent of the area median income for the San Diego County region; and
WHEREAS, the City of Del Mar does not currently have any affordable housing units within the City and does not have any existing zones that allow sufficient residential density to accommodate the development of affordable housing; and WHEREAS, the City’s certified Housing Element for the 5th Cycle planning period (2013-2021) obligated the City to provide capacity for 22 affordable units for rent to low income households that factored in 12 affordable units from the regional housing needs allocation (RHNA) for the 5th Cycle and the shortfall of 10 affordable units that was a required carry over from the 4th Cycle; and
WHEREAS, the intent of Housing Element Program 2-F is to increase the City’s planned housing capacity sufficiently to accommodate its RHNA and more specifically to accommodate development of affordable housing; and
WHEREAS, the State Department of Housing and Community Development (HCD) emphasized in a July 31, 2020 letter to the City that the State law requirement to create adequate sites to accommodate the City’s RHNA is a fundamental component of Housing Element law and that HCD may revoke the certification status of the City’s Housing Element and trigger further enforcement if the City fails timely implementation of the Program; and
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WHEREAS, the State expected Housing Element Program 2-F to have been completed within 24 months of adoption of the 5th Cycle Housing Element; and WHEREAS, if the City does not complete implementation of Program 2-F, the City will be subject to a range of enforcement penalties set forth per State housing law that could negatively impact the City by court orders, lawsuits and fines by the State, legal action by the State Attorney General, fiscal impacts to the General Fund, potential loss of local control over new housing development and risk to State grants in process and ineligibility for future State grant funding; and
WHEREAS, in June 2016 the City received a “Notice of Intent to Sue the City of Del Mar” if the Housing Element programs related to North Commercial and Professional Commercial are not implemented by the City; and
WHEREAS, if the City does not implement Program 2-F it also puts the City at risk of not being able to gain certification of the 6th Cycle Housing Element Update in process because the program is needed to create a sufficient number of housing sites to accommodate affordable housing as required per State law; and WHEREAS, on August 11, 2020, the Planning Commission recommended certification of the PEIR and adoption of the Mitigation, Monitoring and Reporting Program, and adoption of amendments to the Del Mar Community Plan, DMMC Chapters

30.24 and 30.25, and Local Coastal Program; and
WHEREAS, on August 20, 2020, a notice of public hearing was posted and published and mailed notice was provided informing the public of the scheduled City Council public hearing on September 8, 2020; and
WHEREAS, on September 8, 2020, the City Council adopted a Resolution certifying a Program Environmental Impact Report (PEIR SCH No. 2019029058) and adopting a Mitigation, Monitoring and Reporting Program in accordance with the California Environmental Quality Act (CEQA) that analyzes and discloses the known potential impacts associated with the land use plan and code amendments covered by this Ordinance and identifies a mitigation framework that will apply to future housing development; and
WHEREAS, on September 8, 2020, the City Council adopted Resolution 2020-48 amending the City of Del Mar Community Plan consistent with Program 2-F in the City’s existing certified Housing Element that is a part of the existing Community Plan (General Plan) to amend the land use designation relating to a total of four existing parcels located in the Professional Commercial Zone; and
WHEREAS, on September 8, 2020, the City Council introduced the Ordinance; and
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WHEREAS, the proposed amendments constitute a Zone Code Amendment and Local Coastal Program Amendment and following City Council action will be subject to review and unconditional certification by the Coastal Commission.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Del Mar, California, does hereby ordain as follows:

SECTION ONE: That DMMC Section 30.25.010 (PC Zone) be amended to read as follows:

30.25.010 Purpose
The PC Zone is designed to allow office and residential use within the village center in a manner that will not detract from the area's predominantly retail character. Office and professional uses should be geographically concentrated so as to minimize retail parking problems, disruption of pedestrian-oriented shops, and to soften the transition from retail to medium and low density residential at the south end of the village center.

SECTION TWO: That DMMC Section 30.25.030 (PC Zone) be amended to read as follows:

30.25.030 Allowable Uses
The following uses are allowable in the PC Zone:

A. Offices, professional, medical, and dental.

B. Banks and financial institutions, exclusive of drive-thru facilities.

C. Parking lots and parking garages.

D. Multiple dwelling unit residential up to a density of 20 dwelling units per acre.

E. One dwelling unit as accessory to and on the same site as that of a permitted use, and conforming to the parking requirements of the R2 Zone.

F. Short term rental of a dwelling unit.

G. Any similar enterprise or business which conforms to the description and purpose of the PC Zone, and is not detrimental to the welfare of the community.

SECTION THREE: That DMMC Section 30.25.070 (PC Zone) be amended to read as follows:

30.25.070 Development Standards
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A. Density: Up to a maximum of 20 dwelling units per acre.

1. All residential development or conversions shall provide affordable housing pursuant to Chapter 24.21.

2. Notwithstanding Section 24.21.030, residential development or conversions of two, three, four or five units on one lot shall set-aside one unit for rental at below market rate to a low income household or donate one off-site unit, within the City's jurisdiction, of a like size and condition to the City or a City approved organization to be reserved for use as Affordable Housing. The option for payment of the In-Lieu Housing Mitigation Fee shall not be allowed. [No change to subsections B. (Lot Dimensions) through C. (Construction Standards)] SECTION FOUR: That the Chapter II Land Use Development “section B” policies in the Del Mar certified Local Coastal Program be amended to add a new Policy II-4 and amend existing Policy II-8 to read as follows:

Policy II-4: Increase the City’s overall housing capacity and capability to accommodate housing units in commercial zones while minimizing potential land use compatibility conflicts and assuring priority for coastal-dependent and coastal related development.

Policy II-8: Retain a pedestrian-oriented downtown which groups housing, retail services, and commercial services with facilities for civic and community activities.

SECTION FIVE: That the Chapter II Land Use Development “section C” policies in the Del Mar certified Local Coastal Program be amended to amend the Village District policies to read as follows:

9. Village Center District
This area is designated primarily as Central Commercial (CC) and is Del Mar’s principal commercial, visitor serving and professional area. It extends along both sides of Camino del Mar, beginning at 9th Street and reaching north to 15th Street. The District contains the site of the U.S. Post Office, City Hall, and City of Del Mar’s branch of the County of San Diego Library designated as PF (Public Facilities) on the Land Use Map.

Multiple specific plan areas are also included in the Village District. The Specific Plan for the Del Mar Hotel, (HSP west side of Camino del Mar at 15th Street) generally limits the uses on the site to a hotel, timeshare and short term rental units and associated retail uses. The Specific Plan for the Del Mar Plaza, (PSP east side of Camino del Mar at 15th Street) generally limits the uses on site to restaurant and retail uses with a small percentage allowed for office use. The 941 Camino del Mar Specific Plan (941SP east side of Camino del Mar at 10th Street) generally limits the uses to a combination of restaurant, retail, short term rental, and residential uses. Each of the Specific Plan areas 16 March 7, 2022 Item 05
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devotes a portion of the property to public and quasi-public use. Each of these specific plans was voter approved and requires a recorded Development Agreement between the City and the developer/property owner. Where a particular conflict arises between the provisions of a valid and recorded Development Agreement and any policies of this Land Use Plan subsequently adopted, the former shall continue to be binding and shall supersede the subsequently adopted policies of this Land Use Plan. Subsequent development agreements or amendments to existing Development Agreements shall be consistent with the Land Use Plan in effect at the time.

The CC (Central Commercial) designation encompasses the majority of land within the Village District. The CC designation allows for a variety of commercial uses aimed at serving the needs of both residents and visitors to the area. Due to the City’s popularity as a visitor-destination point, the majority of the property in the CC Zone has been developed with uses that serve both residents and visitors.

In order to facilitate the demand for more goods and services, the following policies have been developed to better utilize the commercially designated land in the Village Center District.

SECTION SIX: The City Council finds that approval of this ordinance is covered by the Program Environmental Impact Report (PEIR) document (SCH No. 2019029058) that was prepared and certified pursuant to the California Environmental Quality Act. The City Council bases this finding upon the record prepared by the City and the City’s analysis of the potential environmental effects of this ordinance.

SECTION SEVEN: This Ordinance was introduced by the City Council on September 8, 2020.

SECTION EIGHT: The City Clerk is directed to prepare and have published a summary of this Ordinance no less than five days prior to the consideration of its adoption and again within 15 days following adoption indicating votes cast.

SECTION NINE: Upon adoption, the Ordinance will be submitted to the California Coastal Commission for certification as a Local Coastal Program Amendment. The Ordinance will take effect and be in force on the date that the Coastal Commission takes action to unconditionally certify the Local Coastal Program Amendment.

SECTION TEN: The City shall file a copy of the adopted Ordinance with the State Department of Housing and Community Development.
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PASSED, APPROVED AND ADOPTED by the City Council of the City of Del Mar, California at the Regular Meeting held this 21st day of September, 2020. ______________________________
Ellie Haviland, Mayor
City of Del Mar
APPROVED AS TO FORM:
____________________________
Leslie E. Devaney, City Attorney
City of Del Mar

ATTEST AND CERTIFICATION

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

CITY OF DEL MAR
I, ASHLEY JONES, Administrative Services Director/City Clerk of the City of Del Mar, California, DO HEREBY CERTIFY, that the foregoing is a true and correct copy of Ordinance No. 971, which has been published pursuant to law, and adopted by the City Council of the City of Del Mar, California, at a Regular Meeting held the 21st day of September, 2020, by the following vote:

AYES: Mayor Haviland, Deputy Mayor Gaasterland, Council Members Druker, Parks and Worden
NOES: None
ABSENT: None
ABSTAIN: None
_____________________________________
Ashley Jones, Administrative Services
Director/City Clerk
City of Del Mar
18 March 7, 2022 Item 05
ORDINANCE NO. 973

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DEL

MAR, CALIFORNIA, AMENDING THE DEL MAR MUNICIPAL
CODE CHAPTERS 30.24 AND THE CITY’S CERTIFIED LOCAL
COASTAL PROGRAM CONSISTENT WITH PROGRAM 2-E
REQUIRED BY THE CITY’S EXISTING CERTIFIED HOUSING
ELEMENT RELATING TO A TOTAL OF 16 EXISTING PARCELS

LOCATED IN THE NORTH COMMERCIAL ZONE IN THE CITY

OF DEL MAR, CALIFORNIA
WHEREAS the Housing Element is a required component of the City’s Community Plan per State law; and
WHEREAS, the City’s existing certified Housing Element requires implementation of Program 2-E relating to the North Commercial Zone that requires the City amend its Community Plan, Del Mar Municipal Code (Zoning) Chapter 30.24, and Local Coastal Program to add residential as an allowed primary use up to a density of 20 dwelling units per acre; and
WHEREAS, 20 dwelling units per acre is the density required by the Housing Element because, per the State, it is the minimum density that is feasible to support the development of affordable housing in a small jurisdiction the size of Del Mar; and WHEREAS, “affordable housing” refers to units that are restricted for rent to households with an annual household income no greater than 80 percent of the area median income for the San Diego County region; and
WHEREAS, the City of Del Mar does not currently have any affordable housing units within the City and does not have any existing zones that allow sufficient residential density to accommodate the development of affordable housing; and WHEREAS, the City’s certified Housing Element for the 5th Cycle planning period (2013-2021) obligated the City to provide capacity for 22 affordable units for rent to low income households that factored in 12 affordable units from the regional housing needs allocation (RHNA) for the 5th Cycle and the shortfall of 10 affordable units that was a required carry over from the 4th Cycle; and
WHEREAS, the intent of Housing Element Program 2-E is to increase the City’s planned housing capacity sufficiently to accommodate its RHNA and more specifically to accommodate development of affordable housing; and
WHEREAS, the State Department of Housing and Community Development (HCD) emphasized in a July 31, 2020 letter to the City that the State law requirement to create adequate sites to accommodate the City’s RHNA is a fundamental component of Housing Element law and that HCD may revoke the certification status of the City’s Housing Element and trigger further enforcement if the City fails timely implementation of the Program; and
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WHEREAS, the State expected Housing Element Program 2-E to have been completed within 24 months of adoption of the 5th Cycle Housing Element; and WHEREAS, if the City does not complete implementation of Program 2-E, the City will be subject to a range of enforcement penalties set forth per State housing law that could negatively impact the City by court orders, lawsuits and fines by the State, legal action by the State Attorney General, fiscal impacts to the General Fund, potential loss of local control over new housing development and risk to State grants in process and ineligibility for future State grant funding; and
WHEREAS, in June 2016 the City received a “Notice of Intent to Sue the City of Del Mar” if the Housing Element programs related to North Commercial and Professional Commercial are not implemented by the City; and
WHEREAS, if the City does not implement Program 2-E it also puts the City at risk of not being able to gain certification of the 6th Cycle Housing Element Update in process because the program is needed to create a sufficient number of housing sites to accommodate affordable housing as required per State law; and WHEREAS, on August 11, 2020, the Planning Commission recommended certification of the PEIR and adoption of the Mitigation, Monitoring and Reporting Program, and adoption of amendments to the Del Mar Community Plan, DMMC Chapters

30.24 and 30.25, and Local Coastal Program; and
WHEREAS, on August 20, 2020, a notice of public hearing was posted and published and mailed notice was provided informing the public of the scheduled City Council public hearing on September 8, 2020; and
WHEREAS, on September 8, 2020, the City Council adopted a Resolution certifying a Program Environmental Impact Report (PEIR SCH No. 2019029058) and adopting a Mitigation, Monitoring and Reporting Program in accordance with the California Environmental Quality Act (CEQA) that analyzes and discloses the known potential impacts associated with the land use plan and code amendments covered by this Ordinance and identifies a mitigation framework that will apply to future housing development; and
WHEREAS, on September 21, 2020, a notice of public hearing was posted and published and mailed notice was provided informing the public of the scheduled City Council public hearing on October 5, 2020; and
WHEREAS, on September 30, 2020, the City received an enforcement letter from the California Department of Housing and Community Development indicating that the City’s existing Housing Element is out of substantial compliance with State law because the City had failed to implement program actions in the 5th Cycle Housing Element; and 20 March 7, 2022 Item 05
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WHEREAS, adoption of this Ordinance will directly address one of the identified program actions (Program 2-E North Commercial Zone) needed to bring the City into compliance with its existing Housing Element and State law; and WHEREAS, on October 5, 2020, the City Council introduced the Ordinance; and WHEREAS, the proposed amendments constitute a Zone Code Amendment and Local Coastal Program Amendment that is consistent with the Housing Element of the City’s Community (General) Plan and following City Council action will be subject to review and unconditional certification by the Coastal Commission.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Del Mar, California, does hereby ordain as follows:

SECTION ONE: That Del Mar Municipal Code (DMMC) Section 30.24.010 (NC Zone) be amended as follows:

30.24.010 Purpose
The NC Zone serves as a northerly gateway to the community south of the San Dieguito River and Lagoon. The NC Zone is designed to allow activities that provide a service to the community, including a range of commercial and light industrial uses, and residential where compatible with adjacent land uses. Development in the NC Zone shall be of low intensity profile, offering a lively open air environment with substantial open space.

SECTION TWO: That DMMC Section 30.24.030 (NC Zone) be amended to read as follows:

30.24.030 Allowable Uses
The following uses are allowable in the NC Zone:

A. Commercial uses provided that:

1. The use does not involve the sale of alcohol for on-site consumption between the hours of 11:00 p.m. and 6:00 a.m. and further provided that the use does not involve the provision of goods, food or beverages, or services in a drivein or drive-thru manner.

2. The retailing of goods, foods and beverages, the dispensing of services and light manufacturing from the following:
[No change to the listed uses]

3. Outdoor display areas located on the exterior of a structure housing a retail sales operation, where goods or commodities otherwise available for sale in 21 March 7, 2022 Item 05
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the associated retail sales operation are displayed but not sold; provided all of the following requirements are met:
a. The outdoor display area is located entirely on the same lot as the associated retail sales operation;
b. The area devoted to outdoor display does not encroach upon required parking or access areas;
c. The outdoor display area is contiguous and not more than four feet in width measured from a point perpendicular to the exterior wall of the adjacent structure housing the associated retail sale operation and not more than ten feet in length measured along the exterior wall of the adjacent structure housing the associated retail sale operation; and d. The display of goods or commodities and placement of display structures is limited to the hours of operation of the associated retail sales operation.

B. Any principal use permitted in the CC Zone (excludes those uses which, under CC Zone provisions, would require a conditional use permit).

C. Multiple dwelling unit residential up to a density of 20 dwelling units per acre.

D. Emergency shelters pursuant to Section 30.24.035.

E. One dwelling unit as accessory to and on the same site as that of a permitted use, and conforming to the parking requirements of the R2 Zone.

F. Short term rental of a dwelling unit.

G. Any similar enterprise or business which conforms to the description and purpose of the NC Zone, and is not detrimental to the welfare of the community.

SECTION THREE: That DMMC Section 30.24.070 (NC Zone) be amended to read as follows:

30.24.070 Development Standards
In the NC Zone, the following development standards apply:

A. Density: Up to a maximum of 20 dwelling units per acre

1. All residential development or conversions shall provide affordable housing pursuant to Chapter 24.21.
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2. Notwithstanding Section 24.21.030, residential development or conversions of two, three, four or five units on one lot shall set-aside one unit for rental at below market rate to a low income household or donate one off-site unit, within the City's jurisdiction, of a like size and condition to the City or a City approved organization to be reserved for use as Affordable Housing. The option for payment of the In-Lieu Housing Mitigation Fee shall not be allowed.
[No change to subsections B. (Lot Dimensions) through C. (Construction Standards)] SECTION FOUR: That the Chapter II Land Use Development “section B” policies in the Del Mar certified Local Coastal Program be amended to add a new Policy II-4 and amend existing Policy II-8 to read as follows:

Policy II-8: Retain a pedestrian-oriented downtown which groups housing, retail services, and commercial services with facilities for civic and community activities.

SECTION FIVE: That the Chapter II Land Use Development “section C” policies in the Del Mar certified Local Coastal Program be amended to amend the Valley District, North Hills District, and Village District policies to read as follows:

2. Valley District
This district is located in the northern section of the City and includes the San Dieguito River and Lagoon area, the majority of which is designated as Floodway (FW). It also contains an area designated as North Commercial (NC). Any future use of this district shall be consistent with this Land Use Plan. When reviewing future development proposals, special attention shall be given to the preservation of sensitive wetland habitat and its immediate uplands, and protection against and avoidance of seismic and flooding hazards.

Most of the property which comprises the 22nd District Agricultural Association lies within the overall boundaries of the Valley District. However, it is given its own separate designation on the Land Use Map and is assigned the corresponding land use policies in Section #3 below.

8. North Hills District
The majority of this district is designated for single-family residential development. The District also contains a small area designated as R2 with the same restrictions for such use as described in the South Beach District. The central portion of this district, as shown on Figure II-A, is designated for R1-10 (Low Density) with a maximum allowable density 23 March 7, 2022 Item 05
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of 4.3 du/ac. Any future development within this area shall be compatible and harmonious with the existing character of this single family-residential neighborhood.

A large portion within this district is located on steep hillside areas above the San Dieguito Lagoon and its watershed. This area is designated for larger lot single family development at R1-40 (Very Low 1 du/ac). Much of the area is also within the Bluff, Slope, and Canyon Overlay Zone. Accordingly, development within this area shall be designed to minimize the disruption of topography and to preserve the open space character of these highly visible and sensitive areas. All development shall be consistent with the Bluff, Slope and Canyon and Open Space Policies of this Land Use Plan, where applicable. Some of the area now assigned the designation of R1-40 has been acquired by public interests. The public acquisition of these areas, as shown on Figure V-A, may warrant the future reassignment of a corresponding land use designation.

That area within the district immediately adjacent to the Village Center District is designated as RM-Central (Medium Density Mixed-Central) where residential uses are allowed at a maximum density of 6.3 du/ac. This designation also allows for duplex development on parcels greater than 5,000 square feet with the receipt of a Conditional Use Permit.

The district also contains two commercially designated areas that allow for multipledwelling unit residential development at a maximum density of 20 du/ac, one located near Camino del Mar, south of 9th Street (Professional Commercial-PC) and one in the northern portion of the district adjacent to Jimmy Durante Boulevard (North CommercialNC). Because of its proximity to the adjacent wetlands and flood-prone areas of the San Dieguito River/Lagoon, development in the North Commercial area shall be carefully reviewed for its consistency with the provisions of Chapters III and VI of this Land Use Plan regarding the minimizing of hazards and the preservation of sensitive lands. Much of the northern section of this district also lies within the plan area of the San Dieguito River Valley Regional Open Space Park. All development proposals shall be reviewed for their consistency with the provisions of the San Dieguito River Valley Regional Open Space Park Plan.

SECTION SEVEN: This Ordinance was introduced by the City Council on October 5, 2020.

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SECTION TEN: The City shall file a copy of the adopted Ordinance with the State Department of Housing and Community Development.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Del Mar, California at the Regular Meeting held this 19th day of October, 2020. ______________________________
Ellie Haviland, Mayor
City of Del Mar
APPROVED AS TO FORM:
____________________________
Leslie E. Devaney, City Attorney
City of Del Mar
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ATTEST AND CERTIFICATION

STATE OF CALIFORNIA

COUNTY OF SAN DIEGO

CITY OF DEL MAR
I, ASHLEY JONES, Administrative Services Director/City Clerk of the City of Del Mar, California, DO HEREBY CERTIFY, that the foregoing is a true and correct copy of Ordinance No. 973, which has been published pursuant to law, and adopted by the City Council of the City of Del Mar, California, at a Regular Meeting held the 19th day of October, 2020, by the following vote:

AYES: Mayor Haviland, Council Members Parks and Worden
NOES: Deputy Mayor Gaasterland, Council Member Druker
ABSENT: None
ABSTAIN: None
______________________________________
Ashley Jones, Administrative Services
Director/City Clerk
City of Del Mar
26 March 7, 2022 Item 05
Attachment D
LCP-6-DMR-20-0079-3 (NC/PC Local Coastal Program Amendment) – Final Modifications Approved at the February 10, 2022 Coastal Commission Hearing 1 I. CCC MODIFICATIONS
A. Land Use Plan Modifications
The underlined sections represent language that the Commission suggests be added, and the struck-out sections represent language which the Commission suggests be deleted from the language as originally submitted.

1. Modify the Land Use Designations/Allowed Uses list of the LUP as follows:

NC Repair shops, Blueprinting, Manufacturing, Restaurants, Art and Technical studios, Offices, Warehouses, Multiple dwelling unit residential at a density of up to 20 d.u./acre, Emergency Shelters, Gasoline service stations*, Bars*, Cocktail lounges*, Theatres*, Hotel/Motel*, Vet clinics*, Kennel*, Refuse recycling centers*.

PC Offices; professional, medical, dental; banks and financial institutions (exclusive of drive through); Parking lots; Parking garages, Multiple dwelling unit residential at a density of up to 20 d.u./acre.

B. Implementation Program Modifications
The underlined sections represent language that the Commission suggests be added, and the struck-out sections represent language which the Commission suggests be deleted from the language as originally submitted.

2. Revise Section 30.24.030(C) as follows:

Multiple dwelling unit residential up to a density of 20 dwelling units per acre subject to the following:

1. Proposed projects shall be consistent with the certified Local Coastal Program;

2. The density allowance of 20 dwelling units per acre may not be located on parcels adjacent to the San Dieguito River and Lagoon as depicted in [incorporate LCP Exhibit reflecting detail from Exhibit 7of CCC Staff Report].
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Attachment D
LCP-6-DMR-20-0079-3 (NC/PC Local Coastal Program Amendment) – Final Modifications Approved at the February 10, 2022 Coastal Commission Hearing 2 3. During development permit review, the City shall consider the best available science on sea level rise projections (such as the California State Sea Level Rise Guidance (OPC 2018) and the table for La Jolla in Appendix G of the Coastal Commission’s 2018 Sea Level Rise Policy Guidance), the status of associated adaptation measures (planned and/or implemented), and analysis of how those adaptation measures minimize projected flood risk. This should include consideration of how projected sea level rise and flooding could affect future provision of services to the site; whether the boundary between public land (tidelands) and private land is projected to shift onto the subject project with rising seas; whether the creation of new lots via subdivision should be limited; and whether additional adaptation strategies should be required as a condition of permit approval to address sea level rise and flooding consistent with the Coastal Act and certified LCP.

4. If a proposed multiple dwelling unit project is located on a parcel that falls entirely or partially within the special flood hazard areas identified on the 2019 FEMA Flood Insurance Rate Map (FIRM), the following shall apply as a condition of Coastal Development Permit approval:
a. Development shall be sited and designed, including elevation and floodproofing, to minimize flood damage and avoid flood hazards including those from the impacts of projected sea level rise and flooding over the anticipated lifetime of the proposed structure using the best available science on sea level projections and in consideration of applicable adaptation measures;
b. The landowner shall record a notice on the property and notice all occupants that:
i. The development is located in the Floodplain Overlay Zone (2019 FEMA FIRM), which applies to flood prone properties that are subject to periodic inundation due to flooding, including projected sea level rise;
ii. The property owner and all successors in interest waive any rights under Coastal Act Section 30235 and related LCP policies to hard shoreline armoring to protect the development.
c. Where necessary to ensure coastal resource protection and compliance with the Coastal Act based on the site-specific context, the notice required per Section 30.24.030(C)(4)(b) shall also reflect the following:
i. That sea level rise and flooding could render it difficult or impossible to provide services to the site
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Attachment D
LCP-6-DMR-20-0079-3 (NC/PC Local Coastal Program Amendment) – Final Modifications Approved at the February 10, 2022 Coastal Commission Hearing 3 ii. That the boundary between public land (tidelands) and private land may shift with rising seas and the development approval does not permit encroachment onto public trust land.
iii. That additional adaptation strategies may be required in the future to address sea level rise and flooding consistent with the Coastal Act and certified LCP.
d. The permittee shall acknowledge as a condition of permit approval that while the approved development meets all safety requirements applicable at the time of approval, the development may be required to be removed or relocated in accordance with the certified LCP if the Building Official determines the development becomes unsafe for occupancy due to future flood hazard conditions.

3. Revise Section 30.24.070(A)(1) as follows:

A. Density: Up to a maximum of 20 dwelling units per acre

1. All residential development or conversions shall provide affordable housing. pursuant to Chapter 24.21

4. Revise Section 30.25.070(A)(1) as follows:

A. Density: Up to a maximum of 20 dwelling units per acre

1. All residential development or conversions shall provide affordable housing. pursuant to Chapter 24.21

5. Modify the Zone Designations/Allowed Uses list of the IP as follows:

PC Offices; professional, medical, dental; banks and financial institutions (exclusive of drive through); Parking lots, Parking garages, Multiple dwelling unit residential at a density of up to 20 d.u./acre.
29 March 7, 2022 Item 05
City of Del Mar
Agenda Report
___________________________________________________________________________________________________ City Council Action:

TO: Honorable Mayor and City Council Members
FROM: Clem Brown, Environmental Sustainability/Special Projects Manager Josh Gordon, Battalion Chief, Del Mar Fire Department
Mike Stein, Fire Chief, Del Mar Fire Department
Kristen M. Crane, Assistant City Manager
Via Ashley Jones, City Manager
DATE: March 7, 2022
SUBJECT: Crest Canyon Evacuation Plan
REQUESTED ACTION/RECOMMENDATION:

Staff recommends the City Council receive a presentation regarding the Crest Canyon Evacuation Plan (Attachment A) that was developed by Fire management staff in conjunction with the City of San Diego.

BACKGROUND
On September 28, 2021, the City of Del Mar executed an agreement with the Del Mar Hillside Community Group to facilitate the withdrawal of a Referendum that was filed against City Council Ordinance 973 in November 2020. Ordinance 973 was adopted on October 19, 2020, in order to meet the City’s 5th Cycle Housing Element obligations. In the Referendum Withdrawal Agreement (Agreement), the City agreed to produce a Wildfire Evacuation Plan (Plan) for the North Commercial Zone/San Dieguito Drive area of Del Mar.

The agreement stipulates that the City’s Fire Department would host a community workshop to provide information to residents on wildfire preparedness and solicit public input on a Plan for the North Commercial Zone/San Dieguito Drive area within three months from execution.

The Agreement further stipulates that the City would develop the Plan and present it to the City Council within nine months from execution of the agreement, which would be no later than June 28, 2022.

The Agreement also noted that the Plan is to include the quantitative and qualitative elements necessary to ensure public safety, including ensuring adequate ingress and egress during emergencies. Finally, the Plan is to be at least as comprehensive as the Olivenhain Wildfire Evacuation Plan (Attachment B), which was included with the Agreement as an example document.
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DISCUSSION/ANALYSIS
Between August and October 2021, the City’s Fire Department held three community workshops on wildfire preparedness and solicited feedback on the development of the Plan in accordance with the requirements in the Agreement. All three workshops were held virtually due to the COVID-19 pandemic. The first two workshops, held on August 17 and September 30, 2021, focused on wildfire preparedness and emergency planning. The third workshop, held on October 28, 2021, provided an update on development of the Plan and an opportunity for residents to ask questions and provide feedback.

Staff began working on the Plan with the City’s Fire Department in August 2021, and used the Olivenhain Evacuation Plan (Attachment B) as a model. The evacuation area for the Plan includes the neighborhoods immediately adjacent to Crest Canyon in the cities of Del Mar and San Diego. Because the evacuation area includes streets along the eastern and southern edges of Crest Canyon in the City of San Diego, the City’s Fire Department developed the Plan in cooperation with the City of San Diego Fire-Rescue Department. The draft plan was also reviewed by the City’s Sheriff Captain.

The Plan will be used as an emergency operations resource provided to the Incident Commander to use when making decisions that provide for the safe and orderly evacuation of residents and visitors who live and/or are visiting the neighborhoods that surround the Crest Canyon very high fire hazard severity zone in the event of a wildfire. It is important to note that the Plan is to be utilized by Fire and law enforcement personnel during an actual wildfire emergency. In other words, the Plan is operational, and therefore includes all the elements needed for Fire, law enforcement, and City staff to execute an evacuation. Portions of the plan contain non-public information and are for official use only. Accordingly, that information has been redacted in the public version of the Plan included as Attachment A.

The Plan includes a number of key operational elements for use by Fire, law enforcement, and City staff during an evacuation of the neighborhoods adjacent to Crest Canyon in the event of a wildfire, including:
 Description of the evacuation area and corresponding Public Safety Grids;  Estimates of the number of people/pets potentially needing evacuation;  Evacuation trigger points;
 Emergency shelter locations;
 Estimates for those individuals that may require special assistance/accommodations;  Estimates for evacuation times;
 Pre-identified evacuation routes;
 Key facilities in the evacuation area;
 Public alert and warning methods;
 Traffic control points;
 Necessary resources;
 Temporary refuge area(s);
 Location(s) for Incident Command;
 Potential staging areas for emergency operations;
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 Pre-identified actions for the Fire Department, County Sheriff’s Department, and City Public Works Department;
 Emergency contact numbers for key personnel (redacted);  Wildfire scenarios; and
 Repopulation guidelines.

The most technical and critical components of the Plan are the evacuation routes and estimated evacuation times, as well as the pre-identified and most likely wildfire scenarios.

To assist City staff and the Fire Department with calculating the estimated evacuation times for the various evacuation routes, the City’s traffic engineer prepared a detailed Evacuation Route and Travel Time Assessment (Attachment C) based on a geographic information system (GIS) analysis. The supporting traffic analysis included in the Plan provides realistic and conservative estimates on the total population in the evacuation area and estimated vehicular trips, travel times to the Plan’s evacuation areas, evacuation vehicle demand per route, and the evacuation routes and vehicle demand for the two most likely wildfire scenarios. Those scenarios include: 1) a wildfire approaching the neighborhoods along the southern and eastern edges of Crest Canyon from the west, and 2) a wildfire approaching the neighborhoods along the western and northern edges of Crest Canyon from the east.

It is important to note that the Plan, as is typical for these types of emergency operations documents, reflects the current conditions of the area. As conditions change, such as the construction of new housing units in the area, the Plan will be updated to reflect those changes in conditions and plans for evacuation, if any, will be updated accordingly.

FISCAL IMPACT:

There is no fiscal impact associated with the recommended action.

ENVIRONMENTAL REVIEW:

The proposed City Council action does not constitute a “project” under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Sections 15378 and 21065 because it is an organizational or administrative activity of government that will not have a potential to result in a direct or indirect physical change in the environment and is, therefore, not subject to CEQA. No further action under CEQA is required.

ATTACHMENTS:

Attachment A – Crest Canyon Evacuation Plan
Attachment B – Olivenhain Evacuation Plan
Attachment C – Del Mar Evacuation Route and Travel Time Assessment 3 March 7, 2022 Item 06
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Crest Canyon Evacuation Plan
City of Del Mar
Fire Department
Crest Canyon Evacuation Plan
I. EVACUATION DATA
Jurisdiction: City of Del Mar
Location: Northeast edge of the City of Del Mar and the northwest edge of the City of San Diego. (Figure 1)
San Diego County Public Safety Grids: 3919 and 4019.

San Diego County Public Safety Sub-Grids: 3919-B2, 3919-C2, 3919-A1, 3919-B1, 3919-C1, 3919-D1, 4019-A2, 4019-B2, 4019-C2, and 4019-D2.

Purpose Statement: The purpose of the Crest Canyon Evacuation Plan (Plan) is to provide for the safe and orderly evacuation of community members and visitors who live and/or are visiting the communities and neighborhoods that surround the Crest Canyon very high fire hazard severity zone. This Plan is to be utilized by Fire and Law Enforcement in conjunction with the incident action plan developed by the Incident Commander and those who are in Unified Command.

Decision to Evacuate: It is the responsibility of each affected jurisdiction within the San Diego County Operational Area (OA) to make the decision as to whether to issue an evacuation order for their residents in the event of a wildfire. The Incident Commander decides what neighborhoods to evacuate, and Law Enforcement carries out those orders and evacuation notifications utilizing the Wireless Emergency Alert (WEA) system and the AlertSanDiego mass notification system.

Estimated Number of People Threatened (“Exposed Population”):

The City of Del Mar’s traffic engineer prepared an Evacuation Route and Travel Time Assessment for the Plan (Attachment A). The assessment references the American Communities Survey (2015-2019) that determined an estimate of 2.2 persons per household and 1.5 persons per vehicle for the City of Del Mar. Based on GIS mapping, Figure 1 shows the total households within the evacuation areas based on six geographic areas. Table 1 summarizes the total traffic generated by each of the six geographic areas illustrated in Figure 1.

Attachment A 4 March 7, 2022 Item 06
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Figure 1 – Population Zones
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Table 1: Total Population in Evacuation Area and Estimated Vehicular Trips Population
Zone Description
Residential
Units Population
Trips
Generated
A
East of Mercado between Del
Mar Heights Road and
Lozana Road
172 375 250
B
West of Mercado between Del
Mar Heights Road and
Lozana
146 322 215
C North of Lozana to Crest
Canyon 360 792 528
D
East of Camino del Mar
between Del Mar Heights and
14th Street, and west of Crest
Road
762 1,675 1,117
E
East of Camino del Mar north
of 14th Street, and east of
Jimmy Durante
446 981 654
F
South of Jimmy Durante
along San Dieguito Drive and
Racetrack View
89 196 131
Total 1,975 4,341 2,895
Emergency Shelter Estimates: Relying upon standardized guidelines, this Plan estimates 20% of the displaced population will need shelter. The number of cats and dogs needing shelter is based on the Unified San Diego County OA Emergency Plan, Annex Q. Annex Q estimates that there are 1.49 dogs and 2.0 cats per household. Based on these assumption the numbers below estimate the number of dogs and cats needing shelter.
 868 persons (20% of displaced population)
 646 dogs (1.49 per household)
 789 cats (2.0 per household)
Estimated Number of People That May Require Transportation Assistance: General guidelines call for an estimate of 5%-10% of the threatened population that may require transportation assistance during an evacuation. Seven percent (7%) of the threatened population is used for this Plan until a refined estimate can be determined.  303 persons
Estimated Evacuation Time: The methodology used to calculate the estimated population per street, passenger vehicles, and evacuation times for the Plan are included in the Evacuation Route and Travel Time Assessment included in Appendix A. 6 March 7, 2022 Item 06 Attachement A
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Special Considerations: San Dieguito Drive, Racetrack View Drive, and Oribia Road border the bottom of Crest Canyon. These roads are one-way in and one-way out. The fuel moisture content, inconsistent fuel continuity, and the low height of the fuel pose little threat to the evacuation route. Additionally, the utilization of Law Enforcement to assist with evacuations and traffic control will increase efficiency, lowering evacuation times.

Other Threatened Areas in the Hazard Zone:

Highways and Thoroughfares
 San Diego Freeway – Interstate 5
 Del Mar Heights Road
 Camino Del Mar
Impacted Jurisdictions:
 City of Del Mar
 City of San Diego
 City of Solana Beach
 Rancho Santa Fe (County of San Diego)
Wildfire may result in a threat to the eastern portion of Del Mar and the northwest portion of the City of San Diego. The area most at risk includes structures west of Interstate 5 Freeway, east of Camino Del Mar, north of Del Mar Heights Road, and south of the San Dieguito Lagoon, as well as neighborhoods running on the east side of Interstate 5 Freeway in the City of San Diego.

Warning/Order Activation: In the event of a wildfire, the Incident Commander will advise Law Enforcement, Del Mar Fire Department, Public Works Department, and Del Mar Emergency Operations Center (EOC) to begin evacuation of the affected areas. The Incident Commander will advise Law Enforcement to begin evacuations away from the hazard areas, including unique institutions as indicated on the following page.

Evacuation activation shall be based upon current and predicted fire behavior and weather. Warnings or Orders (defined in Section II) will be initiated as follows:
 Fire and Sheriff, in Unified Command, will coordinate evacuations and notifications.
 The Fire Official will identify the areas (by map section/page) threatened and determine whether Warning and/or Order is to be issued.  The Sheriff’s representative executes the Evacuation Order in all facets, including notification of affected facilities, institutions, and agencies.  Emergency Operations Center (EOC) is to be activated as required by the City Emergency Operation Plan (EOP).
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 The Department of Public Works is to be advised of road closures and traffic control needs.

The Unified Command/Incident Commander (UC/IC) will notify the San Diego Humane Society Emergency Response Team, via the San Diego County Office of Emergency Services (County OES), of the nature of the emergency and request a representative to report to the Incident Command Post (ICP). During the initial notification, pertinent information, such as the nature of the emergency, location, type of animals involved, and anticipated number of animals, as well as the type and number of transportation vehicles needed, should be provided.

If large animals cannot be evacuated, determine whether they can be moved to a shelter or be allowed to remain in an enclosure, based on the type of disaster and the reliability of the location.

Note: The facilities listed below comprise only a partial listing of institutions/agencies that may be impacted in the event of local wildfire. It is the responsibility of each jurisdiction to notify all residents, schools, hospitals, businesses, and all other facilities/individuals within the affected areas of an evacuation order. The Public Safety Grid coordinates cited throughout this document are from the San Diego County Evacuation Planning Map Book.

Key Facilities and Unique Institutions with Evacuation Concerns:

City of Del Mar – Notifications to be made by the City of Del Mar (Refer to Emergency Telephone Numbers sheet for additional numbers):
 Households identified on the Homebound or Vulnerable Residents List or Map (maintained by Del Mar Community Connections)
Public Notification and Communications:

Initial Notification
The initial public notification shall provide basic information including:
 Whether to evacuate or shelter-in-place
 Areas to be evacuated
 Why and when residents should evacuate
 Designated evacuation routes
 Other information deemed appropriate
Public Alert and Warning Methods
 AlertSanDiego Mass Notification system (www.blackboardconnect.com/login) 8 March 7, 2022 Item 06 Attachement A
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o Username: (All Chief Officers & Emergency Managers have their own usernames)
o Password: (Each user has own password)
 Sheriff’s Emergency Notification System – Wireless Emergency Alert (WEA)  Local Emergency Override System (for Cox cable)

 Emergency Alert System (EAS) through County OES
o Television
o Radio
 Emergency vehicles equipped with public address (PA) systems, including lifeguard vehicles
 Sheriff’s ASTREA helicopter PA system
 Personnel equipped with bullhorns
 City website (activate static emergency page)
 City social media sites – Facebook, Twitter, Nextdoor  Door-to-door canvassing
o Emergency officials
o Volunteers (CERT, Senior Patrol)
 Programmable message signs (Public Works – 2 total)
 2-1-1 information line
Modes of Transportation: The primary mode of transportation that will be used during jurisdictional evacuation efforts will be privately owned automobiles. The Fire Department and Operational Area will use available resources, Memorandums of Understanding and Agreement (MOUs/MOAs) with public and private transportation agencies, and mutual aid to procure, coordinate, and provide adequate means of transportation for those people that do not own or have access to automobiles, have disabilities which limit their transportation options, or have other special needs.

Traffic Control Points: Table 2 identifies the traffic control points for the Plan.

Table 2 – Traffic Control Points
No. Location Public Safety
Sub Map
Agency Temporary
Evacuation
Point

1. Durango Dr & Del Mar
Heights Rd
3919-C2 SDPD Torrey Pines
HS/Torrey Pines
State Beach
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2. Recuerdo Dr & Del Mar
Heights Rd
3919-C2 SDPD Torrey Pines HS
Torrey Pines
State Beach

3. Mercado Dr & Del Mar
Heights Rd
3919-C2 SDPD Torrey Pines
HS/Torrey Pines
State Beach

4. Boquita Dr & Del Mar
Heights Rd
3919-D2 SDPD Torrey Pines
HS/Torrey Pines
State Beach

5. Mango Dr & Del Mar
Heights Rd
3919-D2 SDPD Torrey Pines
HS/Torrey Pines
State Beach

10. Crest Way & Del Mar
Heights Rd
3919-B2 SDPD Torrey Pines
HS/Torrey Pines
State Beach

11. Condesa Dr & Del Mar
Heights Rd
3919-D2 SDPD Torrey Pines
HS/Torrey Pines
State Beach

12. Nob Ave & Del Mar Heights
Rd
3819-B1 SDPD Torrey Pines
HS/Torrey Pines
State Beach

13. El Amigo & Camino Del Mar 3919-A2 SDSO Torrey Pines HS/Torrey Pines
State Beach

14. La Amatista Rd & Camino
Del Mar
3919-A2 SDSO Torrey Pines
HS/Torrey Pines
State Beach

15. Wesley Way & Camino Del
Mar
3919-A2 SDSO Torrey Pines
HS/Torrey Pines
State Beach

16. 8th St & Camino Del Mar 3919-A2 SDSO Torrey Pines
HS/Torrey Pines
State Beach

17. 9th Street & Camino Del
Mar
3919-A2 SDSO Torrey Pines
HS/Torrey Pines
State Beach

18. 10th Street & Camino Del
Mar
3919-A1 SDSO Torrey Pines
HS/Torrey Pines
State Beach

19. 11th Street & Camino Del
Mar
3919-A1 SDSO Torrey Pines
HS/Torrey Pines
State Beach

20. 12th Street & Camino Del
Mar
3919-A1 SDSO Torrey Pines
HS/Torrey Pines
State Beach

21. 13th Street & Camino Del
Mar
3919-A1 SDSO Del Mar
Fairgrounds

22. 14th Street & Camino Del
Mar
3918-D1 SDSO Del Mar
Fairgrounds
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23. 15th Street & Camino Del
Mar
4018-D2 SDSO Del Mar
Fairgrounds

24. Seaview Ave & Camino Del
Mar
4018-D2 SDSO Del Mar
Fairgrounds

25. David Way & Jimmy
Durante Blvd
4019-A1 SDSO Del Mar
Fairgrounds

26. Racetrack View Dr & San
Dieguito Dr
4019-B2 SDSO Del Mar
Fairgrounds
Evacuation Routes: Multiple roadways access each of the population areas identified in Figure 1. To estimate the travel time from the population areas to the evacuation centers, the length of the segment, speed and traffic control devices (all-way stops, side street stop, traffic signal, and roundabout) were identified along a total of 11 potential evacuation routes. This information was used to determine an uncongested travel time. Posted speed limits and existing traffic control devices within the City of Del Mar are illustrated in Figure 2. If the speed limit changes along a segment, the lowest posted speed for that segment is reflected in the figure. Figure 3 illustrates the 11 potential evacuation routes used to estimate the evacuation time under non-congested, typical condition.

Table 3 summarizes the estimated evacuation time along each route under an uncongested, typical condition.

Table 3: Estimated Travel Time to Evacuation Center
Evacuation
Route #
Neighborhood
Route Description
Neighborhood
Route
Travel Time
Evacuation
Center /
Primary
Route
Primary
Route
Travel
Time
Total
Travel
Time
1 Mango Drive from
Mango Way to Del Mar
Heights Road
4 minutes
(0.66 miles)
Torrey Pines
High School
via Del Mar
Heights Road
18 minutes
(1.28
miles)
22 minutes
2 Mercado Road from
Lozana Road to Del
Mar Heights Road
3 minutes
(0.50 miles)
Torrey Pines
High School
via Del Mar
Heights Road
19 minutes
(1.43
miles)
23 minutes
3 Recuerdo Drive from
El Amigo Road to Del
Mar Heights Road
2 minutes
(0.29 miles)
Torrey Pines
High School
via Del Mar
Heights Road
22 minutes
(1.55
miles)
24 minutes
4 La Amatista Road from
Crest Drive to Camino
del Mar
2 minutes
(0.36 miles)
Del Mar
Fairgrounds
via Camino
del Mar
15 minutes
(2.04
miles)
17 minutes
5 Hoska Drive to 9th
Street to Camino
Camino del Mar
3 minutes
(0.45 miles)
Del Mar
Fairgrounds
via Camino
del Mar
13 minutes
(1.81
miles)
17 minutes
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6 Kalamath Drive to
Amphitheater Drive to
Cuchara Drive to 9th
Street
3 minutes
(0.57 miles)
Del Mar
Fairgrounds
via Camino
del Mar
11 minutes
(1.66
miles)
14 minutes
7 15th Street from Crest
to Camino del Mar
4 minutes
(0.44 miles)
Del Mar
Fairgrounds
via Camino
del Mar
8 minutes
(1.36
miles)
13 minutes
8 Zapo Street to Culebra
Street to Seaview
Avenue
2 minutes
(0.43 miles)
Del Mar
Fairgrounds
via Camino
del Mar
6 minutes
(1.18
miles)
8 minutes
9 Luzon Avenue to
Seaview Avenue to
David Way
1 minutes
(0.43 miles)
Del Mar
Fairgrounds
via Camino
del Mar
4 minutes
(0.76
miles)
5 minutes
10 Oribia Road to San
Dieguito Drive
5 minutes
(1.07 miles)
Del Mar
Fairgrounds
via Camino
del Mar
2 minutes
(0.57
miles)
8 minutes
11 Racetrack View to San
Dieguito Drive
6 minutes
(1.22 miles)
Del Mar
Fairgrounds
via Camino
del Mar
2 minutes
(0.57
miles)
8 minutes
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Figure 2 – Average Speed Limits
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Figure 3 – Evacuation Routes
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Evacuation Scenarios: For the purpose of this Plan, once the decision to evacuate is made the cumulative percentage of traffic evacuating would likely result in the following pattern:
 15 minutes – 10% of traffic
 30 minutes – 25% of traffic
 60 minutes – 75 % of traffic
 One hour of more – remaining 25% distributed over a 1-hour period Two evacuation scenarios have been evaluated for the Plan. Scenario A represents a fire burning from the west and Scenario B represents a fire burning from the east. The areas evacuated under each scenario and their evacuation routes are illustrated in Figures 4 and 5. Using the distribution of traffic, the evacuation demands on each route over the initial 1-hour period are summarized in Tables 4 and 5 below.

Scenario “A”
Table 4: Scenario “A” Evacuation Routes and Demand over 1-Hour Period Evacuation
Route #
Neighborhood
Route
Description
Evacuatio
n Demand
on Routes
15 minutes
(10%)
30 minutes
(25%)
1 hour
(75%)
Cumulative
Demand
on Del Mar
Heights
(1 hour)
1 Mango Drive from
Mango Way to Del
Mar Heights Road
294 vehicles 29 74 221
745
(maximum
capacity =
600)
2 Mercado Road
from Lozana Road
to Del Mar Heights
Road
224 vehicles 22 56 168
3 Recuerdo Drive
from El Amigo
Road to Del Mar
Heights Road
27 vehicles 48 119 356
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Figure 4 – Scenario “A” Evacuation
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Scenario “B”
Table 5: Scenario “B” Evacuation Routes and Demands over 1-Hour Period Evacuation
Route #
Neighborhood
Route
Description
Evacuation
Demand
on Routes
15 minutes
(10%)
30 minutes
(25%)
1 hour
(75%)
Cumulative
Demand on
Camino Del
Mar
(1 hour)
4 La Amatista
Road from Crest
Drive to Camino
Del Mar
335 vehicles 34 84 251
1,343
(maximum
capacity =
600)
5 Hoska Drive to 9th
Street to Camino
Camino del Mar
335 vehicles 34 84 251
6 Kalamath Drive
to Amphitheater
Drive to Cuchara
Drive to 9th Street
335 vehicles 34 84 251
7 15th Street from
Crest to Camino
del Mar
327 vehicles 33 82 245
8 Zapo Street to
Culebra Street to
Seaview Avenue
164 vehicles 16 41 123
9 Luzon Avenue to
Seaview Avenue
to David Way
164 vehicles
16 41 123
10 Oribia Road to
San Dieguito
Drive
39 vehicles
4 10 29
11 Racetrack View
to San Dieguito
Drive
92 vehicles
9 23 69
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Figure 5 – Scenario “B” Evacuation
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Area Security: Access back into evacuated areas should be initially limited to:
 Emergency service and Public Works personnel
 Utility companies engaged in restoring utility services  Contractors restoring damaged buildings, clearing roads, and removing debris Potential Mass Care Centers/Full Shelters: Due to the unpredictability of wildfires and how they can spread rapidly, there will need to be flexibility in identifying shelters that are safely located outside the hazard zones.

Note: The need for activation to Mass Care Centers will be as recommended by local jurisdictions and as designated by the American Red Cross.

Facilities:
 Del Mar Fairgrounds
 Del Mar Surf Sports Park
Potential Transportation/Temporary Evacuation Points (used to collect and transport people without transportation resources to evacuation points) West: Del Mar Fairgrounds, 2260 Jimmy Durante Blvd, Del Mar, CA 92014 East: Torrey Pines High School, 3710 Del Mar Heights Rd, San Diego, CA 92130 South: Torrey Pines State Beach Parking lot (north), McGonigle Road, San Diego, CA Predetermined Initial Command Post Options:
 Del Mar Fairgrounds, 2260 Jimmy Durante Blvd, Del Mar, CA 92014  Del Mar Emergency Operations Center (EOC), 1050 Camino del Mar Del Mar, CA 92014
 Flower Hill Mall, 2720 Via De La Valle, Del Mar, CA 92014  Operational Area EOC, 5555 Overland Avenue, San Diego, CA 92123 858-565-3490 (2825 D-2)
Potential Fire and Law Enforcement Staging Areas:
 Surf Sports Park (formerly San Diego Polo Fields), 4989 Via De La Valle, Del Mar, CA 92014
 Mira Costa College, 3333 Manchester Avenue, Encinitas, CA 92007 (4519 B-2)  San Diego County Fairgrounds, 2260 Jimmy Durante Blvd, Del Mar, CA 92014 (Also, a potential mass care center)
 San Diego Police Department, 12592 El Camino Real, San Diego, CA 9213 19 March 7, 2022 Item 06 Attachement A
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II. EVENTS AND EMERGENCY STATUS
Event Status
Red Flag Warning Review Plans and Procedures
Wildfire progressing west or southwest from
Crest Canyon
Initiate Phased Evacuation or order an
Evacuation Warning or Shelter in
Place
Wildfire(s) in San Diego or Rancho Santa Fe Scenario A (refer to Figure X) Evacuation Order
Wildfire begins in Rancho Santa Fe (San
Dieguito Watershed)
Evacuation Order
Wildfire threat has ceased Repopulation
Definitions:

Red Flag Warning: Weather conditions in NWS Weather Zone 243 (Coastal Zone) of particular importance that may result in extreme burning. The following weather conditions have been established by the National Weather Service and must be met for the red flag criteria:
 Relative Humidity ≤ 15%
 Sustained winds ≥ 25 MPH
 Wind gusts > 35 MPH for ≥ 6 hours or
 Existing dry lightning activity
Evacuation Order: Requires the immediate movement of people out of an affected area due to an imminent threat to life.

Evacuation Warning: The alerting of people in an affected area(s) of potential threat to life and property. An Evacuation Warning considers the probability that an area will be affected within a given time frame and prepares people for a potential evacuation order.

Shelter-In-Place: Advises people to stay secure at their current location. This tactic shall only be used if an evacuation will cause a higher potential for loss of life Hard Road Closure: The closure of a road or street where only Fire and Law Personnel are permitted to enter.

Soft Road Closure: The closure of a road or street where Fire, Law Enforcement, and approved utility and services companies are permitted to enter.

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III. ACTIONS
City Actions:

Fire Department
 Duty Chief will verify that a wildfire affecting Crest Canyon is imminent or has occurred.
 Duty Chief will get in Unified Command with San Diego Fire.  Duty Chief will notify Law Enforcement and request traffic control and evacuation operations.
 Duty Chief will notify Public Works and request traffic control for the area and directional signage be placed along evacuation routes and stop signs bagged if needed.
 Duty Chief will notify the Fire Chief.
 Upon notification by Fire Chief, City Manager (or designee) will activate the Emergency Operations Center (EOC).
 If necessary, activate the Community Emergency Response Team (CERT) to assist Sheriffs with traffic control.
 If necessary, the Del Mar Fire Department and Lifeguards can assist the Sheriff’s Department with public notification and evacuation activities.

Public Works Department
 Institute traffic control measures. Deploy directional signage and message board.  Bag stop signs (stop signs are identified on Figures 4 and 5). Post signs on cross streets at four way stops indicating that through traffic does not stop.

Traffic Control by Law Enforcement and Fire Department
 Develop and implement traffic control plan.
 Monitor traffic flow.
 Notify the City of San Diego and the City of Solana Beach of potential traffic impacts.

Emergency Operations Center
 Activate the EOC if necessary.
 Notify the Operational Area of the activation.
 Utilize Alert San Diego Mass Notification System and the Wireless Emergency Alert (WEA) upon the issuance of an evacuation order and provide public information.
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Crest Canyon Evacuation Plan
 Post road closures on appropriate WebEOC status boards.  Contact special facilities such as nursing homes and hospitals that may be impacted and request that they review and be prepared to implement their evacuation plans.
 Contact the American Red Cross for potential and confirmed evacuation and shelter needs of displaced population.
 Contact the San Diego County Fairgrounds for potential and confirmed evacuation and shelter needs for large animals (particularly horses), if necessary.  Coordinate mutual aid necessary for evacuation.
 Establish inter-jurisdictional coordination with the City of San Diego.

Law Enforcement Actions: Law Enforcement agencies are responsible for providing security, traffic control and evacuation operations within their areas of responsibility. The Sheriff’s Department is responsible for directing evacuation activities within cities that have contracted with the Sheriff’s Department for law enforcement services, in the unincorporated areas in their jurisdictions and when mutual aid is requested from allied agencies.
 Provide evacuation notification and advisory to unsafe areas.  Identify transportation and evacuation points.
 Coordinate relocation of people to safe areas with other agencies.  Search vacated areas to ensure that all people have received warnings.  Provide initial field situation reports and updates from field units and aerial support to Regional Enforcement Agencies.
 Coordinate the provision of transportation resources to special needs populations.  Provide traffic control measures for the evacuation effort (including the use of Senior Patrol volunteers).
 Provide security and access control to vacated areas.  Coordinate information with Sheriff's Office, C.H.P. and San Diego Police Department concerning evacuation from affected areas, including unique institutions as indicated on previous pages.

County OES Actions
 Coordinate evacuation efforts with local jurisdictions that may be affected by the evacuation.
 Coordinate the release of warnings, instructions and other emergency public information related to the evacuation effort, including the use of the Alert San Diego and the Wireless Emergency Alert (WEA) Mass Notification systems to provide information on affected areas and the location of mass care centers, road closures, and exit/evacuation routes.
22 March 7, 2022 Item 06 Attachement A
For Official Use Only March 7, 2022
Crest Canyon Evacuation Plan
 Coordinate with the Humane Society to provide support with the transportation of large animals.
 Assist in re-entry, recovery operations, and planning with other agencies as requested.

IV. PROCEDURES AND RESPONSIBILITIES
Alerts and Warnings: In responding to a wildfire, precautionary alerts are made by telephone to the affected jurisdictions. Numbers below are confidential and are not to be given out to the public (refer to Emergency Telephone Numbers sheet for additional numbers):

Situation Analysis and Preliminary Hazard/Damage:

Report

1. As soon as possible, a situational analysis is done by the following agencies:
a. The San Diego Sheriff’s, Public Works, Fire, Planning, Development Services Departments, and the American Red Cross will perform ground damage surveys of the affected area within the city boundaries. b. Damage survey information is reported to the City EOC and the Operational Area.

2. The County OES coordinates the Situation Reports and the Hazard/Damage Assessment information with the affected agencies as listed under Section IV A, Alerts and Warnings.

Evacuation:

1. Evacuation is coordinated by the law enforcement agencies involved. CHP assists all agencies with routing and traffic control. For further information on evacuation procedures for the county area, San Diego County Operational Area Emergency Operations Plan, Annex Q.

2. Evacuation warning information may be disseminated via a variety of methods

NORTHCOMM
Sheriff’s Communications
Sheriff’s Watch Commander
CHP Communications
City of Del Mar
City of San Diego Police Headquarters
American Red Cross
San Diego Humane Society
Rancho Santa Fe Patrol
San Dieguito Union High School District
23 March 7, 2022 Item 06 Attachement A
For Official Use Only March 7, 2022
Crest Canyon Evacuation Plan
including, but not limited to: AlertSanDiego, WEA, 2-1-1, San Diego County OES, helicopters, patrol units, City social media sites, news media, etc.

Repopulation:

1. Repopulation efforts should be coordinated through the OA EOC and protocol effectively communicated with Law Enforcement and the National Guard.

IV. REFERENCES

1. Unified San Diego County OA Emergency Plan, Annex Q (Evacuation), September 2018

2. H.R. 2360, Department of Homeland Security Appropriations Act, 2006 Department of Homeland Security Preparedness Directorate No. 197 California Penal Code 409.5 (a) and (c)

3. Pets Evacuation and Transportation Standards Act of 2006 V. ATTACHMENTS
A. Del Mar Evacuation Route and Travel Time Assessment
24 March 7, 2022 Item 06 Attachement A
For Official Use Only CITY OF ENCINITAS

FIRE DEPARTMENT

OLIVENHAIN EVACUATION PLAN
I. EVACUATION DATA
JURISDICTION: City of Encinitas
LOCATION: North-eastern portion of Encinitas; (SDCO Evacuation Map P.157).

Note: Throughout the text, the acronym SDCO Evac Map is used to denote reference to the San Diego County Evacuation Planning Map Book
Sheriff Evacuation Zones 5050-5023,4920-4923, 4820-4823, 4720- 4723
CONTACTS: WEEKDAYS AFTER-HOURS
City of Encinitas: Refer to Emergency Telephone Numbers List DECISION TO EVACUATE:

It is the responsibility of each affected jurisdiction within the San Diego County Operational Area (OA) to make the decision as to whether to issue an evacuation order for their residents in the event of a wildfire. The Incident Commander decides what neighborhoods to evacuate and the Sheriff’s Department carries out those orders.

ESTIMATED NUMBER OF PEOPLE THREATENED (“exposed population”):

Evening and Weekend Population: 5866
Daytime Population: 5240 (based on SANDAG estimate and 2000 census data)

ESTIMATED NUMBER OF PEOPLE THAT MAY REQUIRE TRANSPORTATION ASSISTANCE (Approximately 7% of exposed population; Refer to Homebound Vulnerable Residents List for specific addresses):
411 persons
ESTIMATED EVACUATION TIME: (based on exposed population of 5866, estimated roadway capacity of 1,000 v.p.h. and an average occupancy of 1.5 persons per vehicle):

Evening and Weekend: 3 hours, 55 minutes
Daytime: 3 hours, 42 minutes
Attachment B 25 March 7, 2022 Item 06

Olivenhain Wildfire Evacuation Plan 2 Rev. 12/6/2019
OTHER THREATENED AREAS IN THE HAZARD ZONE:

1. Highways and Thoroughfares OPEN/CLOSED FROM/TO

a. Rancho Santa Fe Road
b. Lone Jack Road
c. Fortuna Ranch Road
d. El Camino Del Norte
AFFECTED JURISDICTIONS:

1. City of Encinitas

2. City of Carlsbad

3. County of San Diego (Elfin Forest, Harmony Grove, and Rancho Santa Fe) AFFECTED AREAS:

Wildfire would result in widespread damage to the eastern portion of Encinitas (Olivenhain). The affected area would include structures east of Ranch Santa Fe Road, north of Encinitas Blvd. and south of Olivenhain Rd., as well as neighborhoods running on either side of Manchester Avenue including Mira Costa College.

WARNING ACTIVATION:

In the event of a wildfire, advise the Sheriff’s Department, Encinitas Fire Department, Public Works Department, and Encinitas EOC to begin evacuation of the affected areas. City of Encinitas will advise the San Diego County Sheriff’s Department to begin evacuations away from the hazard areas, including unique institutions as indicated on the following page.

Note: The facilities listed below comprise only a partial listing of institutions/agencies that may be impacted in the event of local wildfire. It is the responsibility of each jurisdiction to notify all residents, schools, hospitals, businesses and all other facilities/individuals within the affected areas of an evacuation order. The Public Safety Grid coordinates cited throughout this document are from the San Diego County Evacuation Planning Map Book.

Attachment B 26 March 7, 2022 Item 06

Olivenhain Wildfire Evacuation Plan 3 Rev. 12/6/2019

KEY FACILITIES AND UNIQUE INSTITUTIONS WITHIN THE HAZARD AREA:

City of Encinitas - NOTIFICATIONS TO BE MADE BY CITY OF ENCINITAS (refer to Emergency Telephone Numbers sheet for additional numbers):

1. Olivenhain Guest Home (medically fragile patients), 350 Cole Ranch Road, Encinitas, (760) 753-5082 or 760-717-3117 (24 hour)

2. Mira Costa College (San Elijo Campus) 3333 Manchester Avenue, Encinitas (760) 795-6640 (MCPD Dispatch)

3. Olivenhain Municipal Water District, 1966 Olivenhain Rd., Encinitas (760)753-0155

4. Pilot Management (management company for homeowners association near Double LL Ranch /Lone Jack gate) (760) 635-1405

5. 4-Points Management Agency (management company for Wildflower Estates homeowners association) (760) 632-8661

6. San Elijo Lagoon County Park and Ecological Reserve 2710 Manchester Avenue, Encinitas (858) 495-5162

7. Olivenhain Pioneer Elementary School (Encinitas Union School District) 8000 Calle Acervo, Carlsbad, 92009 (760) 944-2000 or 518-6890

8. Households identified on the Homebound or Vulnerable Residents List or Map

PUBLIC NOTIFICATION AND COMMUNICATIONS
Initial Notification
The initial public notification shall provide basic information including:
 Whether to evacuate or shelter-in-place
 Areas to be evacuated
 Why and when residents should evacuate
 The time required for evacuation efforts
 Designated evacuation routes
 What residents should take from their homes
 How pets will be accommodated
 Other information deemed appropriate
Attachment B 27 March 7, 2022 Item 06

Olivenhain Wildfire Evacuation Plan 4 Rev. 12/6/2019
Public Alert and Warning Methods
 AlertSanDiego Mass Notification system
https://www.blackboardconnect.com/login
Username:(All Chief Officers & Emergency Managers have their own user names)
Password: (Each user has own password)
 Sheriff’s Emergency Notification System – Wireless Emergency Alert (WEA)  Local Emergency Override System (for Cox cable)
(760) 305-8912, access code 482, brief tone then press #  Emergency Alert System (EAS) through County OES
o Television
o Radio
 Emergency vehicles equipped with public address (PA) systems, including lifeguard vehicles
 Sheriff’s ASTREA helicopter PA system
 Personnel equipped with bullhorns
 City website (activate static emergency page)
 City social media sites – Facebook, Twitter, Nextdoor  Door-to-door canvassing
o Emergency officials
o Volunteers (CERT, Senior Patrol)
 Programmable message signs (Public Works—2 total)
 2-1-1 information line

MODES OF TRANSPORTATION
The primary mode of transportation that will be used during jurisdictional evacuation efforts will be privately owned automobiles. The City and OA will use available resources, Memorandums of Understanding and Agreement (MOUs/MOAs) with public and private transportation agencies, and mutual aid to procure, coordinate, and provide adequate means of transportation for those people that do not own or have access to automobiles, have disabilities which limit their transportation options, or have other special needs.

TRAFFIC CONTROL POINTS:

No. Location SDCO
Evac.

Map
Responsible Agency

1. Double LL Ranch Rd. & Paseo Esmerado 4921 A-1 Sheriff or Fire Department (open
gate)

2. Dove Hollow Road & Lone Hill Lane 4922 A-1 Public Works (directional signage)

3. Lone Jack Road & Double LL Ranch Road 4921 C-1 Public Works (directional signage)
Attachment B 28 March 7, 2022 Item 06

Olivenhain Wildfire Evacuation Plan 5 Rev. 12/6/2019

4. Lone Jack Road & Fortuna Ranch Road 4921 C-2 Public Works (directional signage)

5. Cole Ranch Road @ Lone Jack Road 4820 C-2 Public Works (directional signage)

6. Cole Ranch Road @ El Camino Del Norte 4820 C-2 Public Works (directional signage)

7. Rancho Santa Fe Rd. & Olivenhain Rd. (closed
to s/b traffic onto Rancho Santa Fe Road)
4920 B-2 Carlsbad PD

8. Rancho Santa Fe Rd. & Avenida La Posta
(traffic signal set to flash)
4820 C-2 Sheriff

9. Rancho Santa Fe Rd. & Lone Jack Road 4820 C-2 Sheriff

10. Rancho Santa Fe Rd. & El Camino Del Norte 4820 C-2 Sheriff

11. Rancho Santa Fe Rd. & Encinitas Blvd. (closed
to n/b traffic onto Rancho Santa Fe Road).

Traffic signal set to flash
4720 B-2 Sheriff

12. El Camino Del Norte and Val Sereno Drive 4821 A-2 Sheriff EVACUATION ROUTES:

Scenario “A” Event (wildfire is outside city limits, approaching east from Harmony Grove or Rancho Santa Fe)
Exposed population north of Dove Hollow Road/Double LL Ranch Road will be evacuated via the Double LL Ranch Rd. gate. Evacuation routes are as follows:

No. Location SDCO Evacuation
Planning Map(s)

1. S/B on Copper Crest Road (to Lone Jack Road) 4921 C-1

2. South-west on Lone Hill Lane (to Lone Jack Road) 4921 C-1

3. S/B on Lone Jack Road 4921 C-1

4. S/B on Lone Hill Lane (to Dove Hollow Rd.) 4921 C-1

5. W/B on Dove Hollow Road 4921 D-1

6. W/B on Double LL Ranch Road 4921 C-1
Exposed population south of Dove Hollow Road /Double LL Ranch Road will be evacuated via Lone Jack Road and El Camino Del Norte:

1. S/B on Rancho Summit Dr. (to Fortuna Ranch Road) 4922 B-1

2. W/B on Fortuna Ranch Road (to Lone Jack Road) 4921 C-2

3. S/B on Western Springs Road (to Fortuna Ranch Road) 4921 D-2

4. W/B on Bumann Road (to Fortuna Ranch Road) 4921 D-2

5. North on Wildflower Drive (to Fortuna Ranch Road) 4921 D-2

6. W/B on El Camino Del Norte 4722 A-1, B1

7. W/B Camino Del Rancho 4821 B-1

8. S/B on Rancho Santa Fe Rd. 4820 C-1, C-2
Attachment B 29 March 7, 2022 Item 06
Olivenhain Wildfire Evacuation Plan 6 Rev. 12/2/2019
Traffic exiting Lone Jack Road and streets to the north will be directed north (no left turn) using on Rancho Santa Fe Road.

Traffic exiting El Camino Del Norte and streets to the south will be directed south (no right turn) on Rancho Santa Fe Road.

If necessary, a utility access road from Morning Sun Drive to Village Park Way is available to direct traffic off Rancho Santa Fe Road.

Due to the narrow roadways and need to possibly deploy firefighting resources to the affected areas, contra flow operations is not an effective option for evacuating residents.

Attachment B 30 March 7, 2022 Item 06
Olivenhain Wildfire Evacuation Plan 7 Rev. 12/2/2019
Attachment B 31 March 7, 2022 Item 06
Olivenhain Wildfire Evacuation Plan 8 Rev. 12/2/2019
Scenario B Event (wildfire is in Escondido Creek in or near city limits and approaching from the south or east)
Exposed population north of 3000 block of Lone Jack Road will be evacuated via the Double LL Ranch Rd. gate. Evacuation routes are as follows:

No. Location Thomas Brother
Map(s)

1. S/B on Copper Crest Road (to Lone Jack Road) 4921 C-1

2. South-west on Lone Hill Lane (to Lone Jack Road) 4921 C-1

3. S/B on Lone Jack Road 4921 C-1

4. S/B on Lone Hill Lane (to Dove Hollow Rd.) 4921 C-1

5. W/B on Dove Hollow Road 4921 D-1

6. W/B on Double LL Ranch Road 4921 C-1

7. S/B on Rancho Summit Dr. (to Dove Hollow Road) 4922 B-1

8. W/B on Fortuna Ranch Road (to Lone Jack Road--North) 4921 C-2

9. North/North-west on Bumann Road (to Fortuna Ranch Rd) 4921 C-1

10. N/B on Wildflower Drive (to Bumann Road) 4921 C-1

11. East on Wildflower Valley Drive (to Lone Jack Road—North) 4821 C-1

12. N/B on Brookside Lane (to Lone Jack Road—North) 4821 B-1

13. N/B on Lone Jack Road (3000 block and higher) 4821 B-1,4921 C-2 Exposed population south of 3000 block of Lone Jack Road will be evacuated via Lone Jack Road and El Camino Del Norte:
1 S/B on Lone Jack Road (2900 block and lower) 4821 A-1

2. S/B on Val Sereno Drive (to El Camino Del Norte) 4721 A-1

3. W/B on El Camino Del Norte 4721 B-1, A-1

4. E/B on 9
th Street (to Rancho Santa Fe Road) 4820 C-2

5. S/B on Rancho Santa Fe Rd. 4720 C-1
Attachment B 32 March 7, 2022 Item 06
Olivenhain Wildfire Evacuation Plan 9 Rev. 12/2/2019
Attachment B 33 March 7, 2022 Item 06
Olivenhain Wildfire Evacuation Plan 10 Rev. 12/2/2019

RESOURCES
Type 2 Barricades
Solar panel signal board (2)
Sign bags

AREA SECURITY
Access back into evacuated areas should be initially limited to:
 Emergency service and public works personnel
 Utility companies engaged in restoring utility services  Contractors restoring damaged buildings, clearing roads and removing debris  Commercial vehicles

ACCESS CONTROL POINTS
Intersection S.D.County
Evacuation Maps
Rancho Santa Fe Rd. & Olivenhain Rd. (closed to s/b
traffic onto Rancho Santa Fe Road)
4920 A-1
Rancho Santa Fe Rd. & Encinitas Blvd. (closed to n/b
traffic onto Rancho Santa Fe Road). Traffic signal set
to flash
4720 B-2
SHELTER ESTIMATE (Approximately 20% of exposed population):
1173 persons
512 dogs (based on average 1.69 per household)
664 cats (based on average of 2.19 per household)
282 horses
Attachment B 34 March 7, 2022 Item 06
Olivenhain Wildfire Evacuation Plan 11 Rev. 12/2/2019
POTENTIAL MASS CARE CENTERS:

Due to the unpredictability of wildfires and how they can spread rapidly, there will need to be flexibility in identifying shelters that are safely located outside the hazard zones.

NOTE: The need for activation to Mass Care Centers will be as recommended by local jurisdictions and as designated by the American Red Cross.

Facility Capacity

1. Encinitas Community Center 318

2. Oak Crest Middle School 127

3. San Dieguito Academy 299

TEMPORARY HORSE/LIVESTOCK SHELTERS

1. Oakcrest Middle School (notify San Dieguito Union School District)

2. San Diego County Fairgrounds
POTENTIAL TRANSPORTATION/TEMPORARY EVACUATION POINTS (used to collect and transport people without transportation resources to evacuation points)

1. Olivenhain Town Hall, 423 Rancho Santa Fe Road, Encinitas (4720 C-2)

2. Little Oaks Park (Lone Jack Road at Crystal Ridge Road) (4821 A-1) INITIAL COMMAND POSTS:

1. Encinitas Sheriff’s Station, 175 N. El Camino Real, Encinitas, 760-966-3500 (4819 B2)

2. Encinitas Emergency Operations Center (EOC) 505 S. Vulcan Avenue, Encinitas, (4717 C-1)

3. Operational Area EOC, 5555 Overland Avenue, San Diego, (2825 D-2) POTENTIAL STAGING AREAS:

1. Oakcrest Park, 675 Balour Dr., Encinitas (4718 D-1)

2. San Dieguito High School, 800 Santa Fe Dr. (4718 B-2)* Attachment B 35 March 7, 2022 Item 06
Olivenhain Wildfire Evacuation Plan 12 Rev. 12/2/2019

3. Mira Costa College, 3333 Manchester Avenue (4519 B-2)

4. Paul Ecke Sports Park, 200 Saxony Rd. (4818 A-2)

5. Encinitas Community Center, 1140 Oakcrest Park Road* (4718 D-1) * Also a potential mass care center
II. EVENTS AND EMERGENCY STATUS

EVENT STATUS
Red Flag Warning Review Plans and Procedures
Wildfire progressing west from
Escondido, Poway or Rancho Bernardo Initiate Phased Evacuation or order a Voluntary Evacuation
Wildfire(s) in San Marcos, Harmony Grove,
Elfin Forest, Carlsbad or Rancho Santa Fe Scenario A (refer to map) Mandatory Evacuation
Wildfire begins in Olivenhain. Scenario B (refer to map) (Escondido Creek), Rancho Santa Fe Mandatory Evacuation Wildfire threat has ceased Repopulation
III. ACTIONS
A. CITY ACTIONS:

Fire Department
 Fire Duty Chief will verify that a wildfire affecting Olivenhain is imminent or has occurred.
 Duty Chief will notify the Sheriff’s and request traffic control and evacuation operations and request that both Double LL Ranch Road emergency access gates be opened and secured in an open position using the cellular access control or knox key. If Sheriff’s personnel are unavailable, Fire Prevention personnel or CBD #2216 can open both gates.

Attachment B 36 March 7, 2022 Item 06
Olivenhain Wildfire Evacuation Plan 13 Rev. 12/2/2019
 Duty Chief will notify Public Works and request traffic control for the area and directional signage be placed along evacuation routes and stop signs bagged.
 Duty Chief will notify the Fire Chief.
 Upon notification by Fire Chief, City Manager (or designee) will activate the Emergency Operations Center (EOC).
 If necessary, activate the Community Emergency Response Team (CERT) to assist Sheriff’s with traffic control.
 If necessary, the Encinitas Fire Department and Lifeguards can assist the Sheriff’s Department with public notification and evacuation activities. Fire engines (6), chief officer (4) and lifeguard vehicles (3) are equipped with vehicle public address systems.

Public Works Department
 Institute traffic control measures. Deploy directional signage and message boards.
 Bag stop signs (stop signs are identified on the maps). Post signs on cross streets at four way stops indicating that through traffic does not stop.
 Post road closures on appropriate Web EOC status boards.

Traffic Engineering
 Develop and implement traffic control plan.
 Monitor traffic flow.
 Notify the City of Carlsbad of potential traffic impacts.

Emergency Operations Center
 Notify the Operational Area of the activation.
 Utilize AlertSanDiego Mass Notification System upon the issuance of an evacuation order and provide public information.

Attachment B 37 March 7, 2022 Item 06
Olivenhain Wildfire Evacuation Plan 14 Rev. 12/2/2019
 Contact special facilities such as nursing homes and hospitals that may be impacted and request that they review and be prepared to implement their evacuation plans.
 Contact the American Red Cross for potential and confirmed evacuation and shelter needs of displaced population.
 Contact the San Diego County Fairgrounds for potential and confirmed evacuation and shelter needs for large animals (particularly horses), if necessary.
 Coordinate mutual aid necessary for evacuation.
 Establish Inter-jurisdictional coordination with the City of Carlsbad.

B. SHERIFF’S DEPARTMENT (LAW ENFORCEMENT) ACTIONS:

Law enforcement agencies are responsible for providing security, traffic control and evacuation operations within their areas of responsibility. The Sheriff’s Department is responsible for directing evacuation activities within cities that have contracted with the Sheriff’s Department for law enforcement services, in the unincorporated areas in their jurisdictions and when mutual aid is requested from allied agencies.
 Provide evacuation notification and advisory to unsafe areas.  Identify transportation and evacuation points.
 Coordinate relocation of people to safe areas with other agencies.  Search vacated areas to ensure that all people have received warnings.
 Provide initial field situation reports and updates from field units and Aerial Support to Regional Enforcement Agencies.
 Coordinate the provision of transportation resources to special needs populations.
 Provide traffic control measures for the evacuation effort (including the use of Senior Patrol volunteers).
 Provide security and access control to vacated areas.

Attachment B 38 March 7, 2022 Item 06
Olivenhain Wildfire Evacuation Plan 15 Rev. 12/2/2019
 Coordinate information with Sheriff's Office, C.H.P. and Carlsbad Police Departments concerning evacuation from affected areas, including unique institutions as indicated on previous pages.

C. COUNTY OES ACTIONS
 Coordinate evacuation efforts with local jurisdictions that may be affected by the evacuation.
 Coordinate the release of warnings, instructions and other emergency public information related to the evacuation effort, including the use of AlertSanDiego and Wireless Emergency Alert (WEA) Mass Notification systems to provide information on affected areas and the location of mass care centers, road closures, and exit/evacuation routes.
 Coordinate with the Humane Society and County Animal Services to provide support with the transportation of large animals.  Assist in re-entry, recovery operations and planning with other agencies as requested.

IV. PROCEDURES AND RESPONSIBILITIES
A. ALERTS AND WARNING
In responding to a wildfire, precautionary alerts are made by telephone to the affected jurisdictions. Numbers below are confidential and are not to be given out to the public (refer to Emergency
Telephone Numbers sheet for additional numbers):

NORTHCOMM
Sheriff’s Communications
Sheriff’s Watch Commander
CHP Communications
City of Encinitas
City of Carlsbad Police Department
American Red Cross
San Diego Humane Society
Rancho Santa Fe Patrol
San Dieguito Union High School District
Encinitas Union School District
Attachment B 39 March 7, 2022 Item 06
Olivenhain Wildfire Evacuation Plan 16 Rev. 12/2/2019
B. SITUATION ANALYSIS AND PRELIMINARY HAZARD/DAMAGE
REPORT

1. As soon as possible, a situational analysis is done by the following agencies:
a. The Encinitas Sheriff’s Station, Public Works, Fire, Engineering, Development Services Departments and the Red Cross will perform ground damage surveys of the affected area within the city boundaries.
b. Damage survey information is reported to the City EOC and the Operational Area.

2. The County OES coordinates the Situation Reports and the Hazard/Damage Assessment information with the affected agencies as listed under Section IV A, Alerts and Warnings.

C. EVACUATION

1. Evacuation is coordinated by the law enforcement agencies involved.

CHP assists all agencies with routing and traffic control. For further information on evacuation procedures for the county area, see Annex C, San Diego County Operational Area Emergency Operations Plan.

2. Evacuation warning information may be disseminated via a variety of methods including, but not limited to: AlertSanDiego, WEA, helicopter, patrol units, City social media sites, news media, etc.

D. REPOPULATION

1. Provide ample time for residents’ re-entry into evacuation area.

2. Repopulation efforts should be coordinated through the OA EOC and protocol effectively communicated with Law Enforcement and the National Guard.

IV. REFERENCES
Unified San Diego County OA Emergency Plan, Annex Q (Evacuation), September 2018 H.R. 2360, Department of Homeland Security Appropriations Act, 2006 Department of Homeland Security Preparedness Directorate No. 197 California Penal Code 409.5 (a) and (c)
Pets Evacuation and Transportation Standards Act of 2006 Attachment B 40 March 7, 2022 Item 06
5050 Avenida Encinas, Suite 260 | Carlsbad, CA 92008
MBAKERINTL.COM Office: 760.476.9193 | Fax: 760.476.9198 | mbakerintl.com February 22, 2022
Clem Brown | Environmental Sustainability & Special Projects Manager City of Del Mar | City Manager’s Office
1050 Camino del Mar
Del Mar, CA 92014
Subject: Del Mar Evacuation Route and Travel Time Assessment Mr. Brown,
Per the request of the City of Del Mar, Michael Baker International (Michael Baker) prepared this Evacuation Route and Travel Time assessment in support of the Crest Canyon Evacuation Plan.

Traffic Volumes
Consistent with the methodology outlined in the Crest Canyon Evacuation Plan, the American Communities Survey (2015-2019) determined 2.2 persons per household and 1.5 persons per vehicle.

Using GIS mapping, Figure 1 was generated to identify total households within the evacuation areas based on six geographic areas. Table 1 summarizes the total traffic generated by each of the six geographic areas illustrated in Figure 1.

Table 1: Total Population in Evacuation Area and Estimated Vehicular Trips Population
Zone Description
Residential
Units Population
Trips
Generated
A East of Mercado between Del Mar
Heights Road and Lozana 172 375 250
B West of Mercado between Del Mar
Heights Road and Lozana Road 146 322 215
C North of Lozana to Crest Canyon 360 792 528
D East of Camino del Mar between Del
Mar Heights and 14th Street 762 1,675 1,117
E East of Camino del Mar between 14th
Street and Jimmy Durante 446 981 654
F South of Jimmy Durante along San
Dieguito Drive and Racetrack View 89 196 131
Total 1,975 4,341 2,895
Attachment C 41 March 7, 2022 Item 06
2 | Page
Evacuation Routes and Evacuation Times
Multiple roadways access each of the population areas identified in Figure 1. To estimate the travel time from the population areas to the evacuation centers, the length of the segment, speed and traffic control devices (all-way stops, side street stop, traffic signal, and roundabout) were identified along a total of 11 potential evacuation routes. This information was used to determine an uncongested travel time. Posted speed limits and existing traffic control devices within the City of Del Mar are illustrated in Figure 2. If the speed limit changes along a segment, the lowest posted speed for that segment is reflected in the figure. Figure 3 illustrates the 11 potential evacuation routes used to estimate the evacuation time under non-congested, typical condition.

A delay factor of two seconds was applied for signalized intersections. All-way stops, roundabouts, and side street stop control intersections received a delay factor of one second. While the typical delay at these intersections is less than the estimated delay factor, the factor also accounts for travel time from the tributary roadways to access the evacuation routes and potential delays imposed due to an influx of traffic during an evacuation condition. Delay times will be significantly less than estimated if emergency responders control traffic at key locations.

Evacuation times along the routes include two segments of the route – the neighborhood route (shown in Figure 3 in orange), which leads from the neighborhood streets to the arterial roadways and the primary route (shown in Figure 3 in black), which connects the neighborhood route to the evacuation center. Table 2 provides a description of each of the evacuation routes, neighborhood and primary route travel times as identified in Figure 3.

Evacuation Route Traffic Demands
Table 2 summarizes the estimated evacuation time along each route under an uncongested, typical condition. During an evacuation, traffic congestion builds over time due to the influx of outbound trips, which can affect the overall travel time if the capacity of the roadways are exceeded by the demand.

To determine the capacity along an evacuation route, a per lane capacity of 600 to 1,000 vehicles per lane per hour was used in this analysis. The capacity assigned to a roadway depended on the type of roadway, speed limit and type of traffic control devices along the road. Wider roadways with highspeed limits can carry more traffic than a narrower neighborhood roadway with neighborhood stop signs and slower speed limits.

Table 3 summarizes the estimated capacity of the neighborhood and primary evacuation routes and the estimated traffic demand along those routes based on the data provided in the population zones.

Attachment C 42 March 7, 2022 Item 06
3 | Page
Table 2: Estimated Travel Time to Evacuation Center
Evacuation
Route #
Neighborhood Route
Description
Neighborhood
Route
Travel Time
Evacuation Center /
Primary Route
Primary Route
Travel Time
Total Travel
Time
1 Mango Drive from Mango Way
to Del Mar Heights Road
4 minutes
(0.66 miles)
Torrey Pines High
School via Del Mar
Heights Road
18 minutes
(1.28 miles) 22 minutes
2 Mercado Road from Lozana
Road to Del Mar Heights Road
3 minutes
(0.50 miles)
Torrey Pines High
School via Del Mar
Heights Road
19 minutes
(1.43 miles) 23 minutes
3 Recuerdo Drive from El Amigo
Road to Del Mar Heights Road
2 minutes
(0.29 miles)
Torrey Pines High
School via Del Mar
Heights Road
22 minutes
(1.55 miles) 24 minutes
4 La Amatista Road from Crest
Drive to Camino del Mar
2 minutes
(0.36 miles)
Del Mar Fairgrounds
via Camino del Mar
15 minutes
(2.04 miles) 17 minutes
5 Hoska Drive to 9th Street to
Camino Camino del Mar
3 minutes
(0.45 miles)
Del Mar Fairgrounds
via Camino del Mar
13 minutes
(1.81 miles) 17 minutes
6 Kalamath Drive to
Amphitheater Drive to
Cuchara Drive to 9th Street
3 minutes
(0.57 miles)
Del Mar Fairgrounds
via Camino del Mar
11 minutes
(1.66 miles) 14 minutes
7 15th Street from Crest to
Camino del Mar
4 minutes
(0.44 miles)
Del Mar Fairgrounds
via Camino del Mar
8 minutes
(1.36 miles) 13 minutes
8 Zapo Street to Culebra Street
to Seaview Avenue
2 minutes
(0.43 miles)
Del Mar Fairgrounds
via Camino del Mar
6 minutes
(1.18 miles) 8 minutes
9 Luzon Avenue to Seaview
Avenue to David Way
1 minutes
(0.43 miles)
Del Mar Fairgrounds
via Camino del Mar
4 minutes
(0.76 miles) 5 minutes
10 Oribia Road to San Dieguito
Drive
5 minutes
(1.07 miles)
Del Mar Fairgrounds
via Camino del Mar
2 minutes
(0.57 miles) 8 minutes
11 Racetrack View to San
Dieguito Drive
6 minutes
(1.22 miles)
Del Mar Fairgrounds
via Camino del Mar
2 minutes
(0.57 miles) 8 minutes
Attachment C 43 March 7, 2022 Item 06
4 | Page
Table 3: Evacuation Demand per Evacuation Route
Evacuation
Route #
Neighborhood Route Primary Route Population
Area
Served
(Zone)
Evacuation
Demand on
Routes
Total Demand
Description by Route
Roadway
Capacity
Evacuation Center /
Primary Route
Roadway
Capacity
Available
Capacity
(30%)
1 Mango Drive from Mango Way to Del
Mar Heights Road 800
Torrey Pines High School
via Del Mar Heights Road 2,000 600 A,B 294 vehicles
Del Mar
Heights:
993
2 Mercado Road from Lozana Road to
Del Mar Heights Road 800
Torrey Pines High School
via Del Mar Heights Road 2,000 600 A,B 224 vehicles
3 Recuerdo Drive from El Amigo Road to
Del Mar Heights Road 800
Torrey Pines High School
via Del Mar Heights Road 2,000 600 A,C 27 vehicles
4 La Amatista Road from Crest Drive to
Camino Del Mar 600
Del Mar Fairgrounds via
Camino del Mar 2,000 600 D 335 vehicles
Camino del
Mar:
1,790
5 Hoska Drive to 9th Street to Camino
Camino del Mar 600
Del Mar Fairgrounds via
Camino del Mar 2,000 600 D 335 vehicles
6 Kalamath Drive to Amphitheater Drive
to Cuchara Drive to 9th Street 600
Del Mar Fairgrounds via
Camino del Mar 2,000 600 D 335 vehicles
7 15th Street from Crest to Camino del
Mar 600
Del Mar Fairgrounds via
Camino del Mar 2,000 600 E 327 vehicles
8 Zapo Street to Culebra Street to
Seaview Avenue 600
Del Mar Fairgrounds via
Camino del Mar 2,000 600 E 164 vehicles
9 Luzon Avenue to Seaview Avenue to
David Way 600
Del Mar Fairgrounds via
Camino del Mar 2,000 600 E 164 vehicles
10 Oribia Road to San Dieguito Drive
600
Del Mar Fairgrounds via
Camino del Mar 2,000 600 F 39 vehicles
11 Racetrack View to San Dieguito Drive
800
Del Mar Fairgrounds via
Camino del Mar 2,000 600 F 92 vehicles
Attachment C 44 March 7, 2022 Item 06
5 | Page
Based on the routes identified, a total of 993 vehicles would travel toward Torrey Pines High School (Routes 1 through 3) and 1,790 would travel toward the Del Mar Fairgrounds (Routes 4 through 11).

The primary routes that serve these evacuation routes are assumed to carry approximately 1,000 vehicles per lane per hour per direction (2 lanes at 1,000 vehicles per lane = 2,000 vehicles per hour).

While the evacuation volumes are less than the available capacity, existing traffic along the roads will consume some of the available capacity. For the purpose of the evacuation scenarios in the following section, 50% of the total capacity is assumed to be available during the initial stages of an evacuation (first hour). This availability may be less if evacuations occur during the peak hour.

Congestion along a route typically occurs when the demand exceeds or approaches the available capacity. This typically occurs when 90% or more of the capacity is consumed (related to a LOS E condition). Therefore, the total available capacity before operational breakdown occurs is 30% (50% consumed by existing traffic, 30% consumed by evacuation traffic = 80% total capacity).

Therefore, it is reasonable to assume that while the neighborhood routes provide sufficient capacity to evacuate the neighborhoods, congestion will occur along the primary routes if evacuation times are not staggered.

Evacuation Scenarios
Research has shown that during an emergency the distribution of time it takes a household to evacuate ranges based on several factors including urgency and urban density. For the purpose of this study, we assume that once the decision to evacuate is made, the cumulative percentage of traffic evacuating would likely result in the following pattern:
15 minutes – 10% of traffic
30 minutes – 25% of traffic
60 minutes – 75 % of traffic
One hour of more – remaining 25% distributed over a 1-hour period Two evacuation scenarios have been evaluated in the Crest Canyon Evacuation Plan. Scenario A represents a fire burning from the west and Scenario B represents a fire burning from the east. The areas evacuated under each scenario and their evacuation routes are illustrated in Figures 4 and 5.

Using the distribution of traffic, the evacuation demands on each route over the initial 1-hour period are summarized in Tables 4 and 5 below.

Attachment C 45 March 7, 2022 Item 06
6 | Page
Table 4: Scenario A Evacuation Routes and Demands over a 1-Hour Period Evacuation
Route #
Neighborhood Route
Description
Evacuation
Demand on
Routes
15 minutes
(10%)
30 minutes
(25%)
1 hour
(75%)
Cumulative
Demand on Del
Mar Heights
(1 hour)
1 Mango Drive from
Mango Way to Del
Mar Heights Road
294 vehicles 29 74 221
745
(maximum
capacity = 600)
2 Mercado Road from
Lozana Road to Del
Mar Heights Road
224 vehicles 22 56 168
3 Recuerdo Drive from
El Amigo Road to Del
Mar Heights Road
27 vehicles 48 119 356
Table 5: Scenario B Evacuation Routes and Demands over a 1-Hour Period Evacuation
Route #
Neighborhood Route
Description
Evacuation
Demand on
Routes
15 minutes
(10%)
30 minutes
(25%)
1 hour
(75%)
Cumulative
Demand on
Camino Del Mar
(1 hour)
4 La Amatista Road from
Crest Drive to Camino
Del Mar
335 vehicles 34 84 251
1,343
(maximum
capacity = 600)
5 Hoska Drive to 9th
Street to Camino
Camino del Mar
335 vehicles 34 84 251
6 Kalamath Drive to
Amphitheater Drive to
Cuchara Drive to 9th
Street
335 vehicles 34 84 251
7 15th Street from Crest
to Camino del Mar 327 vehicles 33 82 245
8 Zapo Street to Culebra
Street to Seaview
Avenue
164 vehicles 16 41 123
9 Luzon Avenue to
Seaview Avenue to
David Way
164 vehicles
16 41 123
10 Oribia Road to San
Dieguito Drive 39 vehicles 4 10 29
11 Racetrack View to San
Dieguito Drive 92 vehicles 9 23 69
Attachment C 46 March 7, 2022 Item 06
7 | Page
Based on the analysis summarized above, Scenario A would need to be staggered to avoid congestion assuming 30% of the roadway capacity is available for evacuation along Del Mar Heights. Based on the analysis, 400 households (600 vehicles in an hour divided by 1.5 vehicles per household) could be evacuated before congestion would occur. Traffic control is recommended where the neighborhood streets intersect with Del Mar Heights to minimize queues and delays at the stop and signal controlled location to maximize the efficiency of the evacuations.

Similarly, the one-hour evacuation demand for Camino del Mar exceeds the assumed 30% available capacity. Therefore, evacuations within the neighborhoods would need to be staggered to minimize impacts. Approximately 400 households (600 vehicles in an hour divided by 1.5 vehicles per household) could be evacuated before the available capacity is exceeded. Traffic control is recommended at all signalized and all-way stop control locations to minimize delay. Based on the vehicular demand on Camino del Mar, this may require 3 phases of evacuation to minimize congestion.

Restricting the direction of travel (all traffic travels toward the fairgrounds) or splitting the traffic between the Del Mar Fairgrounds and Torrey Pines State Beach may reduce the delay on the neighborhood and primary evacuation routes and may be required if three phases of evacuation is not feasible.

Conclusions
Within the evacuation study area there are approximately 1,975 residential units, which could generate up to 2,895 vehicle trips during an evacuation scenario. The trips are distributed over two primary evacuation routes: Torrey Pines High School and Del Mar Fairgrounds. While the travel times to the Del Mar Fairgrounds are lower than those to Torrey Pines High School – primarily due to the traffic signals along Del Mar Heights Road and need to cross over the I-5 freeway – the traffic demand on the Del Mar Fairgrounds route may result in congested conditions if not managed with evacuation phasing and traffic control at key intersections.

The study suggests that in both Scenario A and Scenario B evacuations will need to be staggered to avoid congestion along arterial roadways and at key intersections. Traffic control is recommended along Del Mar Heights and Camino del Mar to minimize intersection delays and potential queuing exiting the residential neighborhoods. To further reduce the potential congestion along the Camino del Mar route to the Del Mar Fairgrounds, traffic may benefit from being routed south towards Torrey Pines State Beach.

Closure
We are happy to respond to any questions you may have regarding information provided in this report.

Sincerely,
Dawn L. Wilson, PE, TE
Associate Vice President | Transportation Planning Department Manager Attachment C 47 March 7, 2022 Item 06

CREST CANYON EVACUATION PLAN
° Population Zones 0 0.25 0.5
Miles
Source: ESRI, SanGIS
Pacific Ocean
Del Mar
Fairgrounds
Torrey Pines
High School
Torrey Pines State
Beach Parking
Lot (North)
Del Mar Surf
Sports Park
Evacuation Site
Population Zones
Zone A (172 Homes)
Zone B (146 Homes)
Zone C (360 Homes)
Zone D (762 Homes)
Zone E (446 Homes)
Zone F (89 Homes)
E?t
!"^$
!"^$
Del Mar Heights Rd
Camino Del Mar
Via De La Valle
Figure 1
San Dieguito
Lagoon
B A
C
D
E
F
Attachment C 48 March 7, 2022 Item 06

CREST CANYON EVACUATION PLAN
° Average Speed Limits 0 0.25 0.5
Miles
Source: ESRI, SanGIS
Pacific Ocean
Del Mar
Fairgrounds
Torrey Pines
High School
Torrey Pines State
Beach Parking
Lot (North)
Del Mar Surf
Sports Park
Evacuation Site
Traffic Control
All Way Stop
Roundabout
Side Street Stop
Signalized Intersection
Roads (Avg. Speed Limit)
Unknown
5 MPH
8 MPH
10 MPH
20 MPH
25 MPH
35 MPH
E?t
!"^$
!"^$
Del Mar Heights Rd
Camino Del Mar
Via De La Valle
Figure 2
Attachment C 49 March 7, 2022 Item 06

CREST CANYON EVACUATION PLAN
° Evacuation Routes 0 0.25 0.5
Miles
Source: ESRI, SanGIS
Pacific Ocean
Del Mar
Fairgrounds
Torrey Pines
High School
Torrey Pines State
Beach Parking
Lot (North)
Del Mar Surf
Sports Park
1 2
3 4
5 6 10
7 11
8 9
12 Evacuation Site
Evacuation Route
School
Traffic Control
All Way Stop
Roundabout
Side Street Stop
Signalized Intersection
Primary Route
Secondary Route
Neighborhood Route
E?t
!"^$
!"^$
Del Mar Heights Rd
Camino Del Mar
Via De La Valle
Figure 3
Attachment C 50 March 7, 2022 Item 06
5 Fire Approaching
from West
Through Crest
Canyon Park
Fire Approaching
from West
Through Crest
Canyon Park
1 3 2

CREST CANYON EVACUATION PLAN
Scenario A Evacuation
Source: ESRI, SanGIS
Evacuation Route Direction
Evacuation Site
Evacuation Route
School
Primary Route
Secondary Route
Neighborhood Route
Traffic Control
All Way Stop
Roundabout
Side Street Stop
Signalized Intersection
Recommended Routes
Route 1
Route 1 or 2
Routes 1, 2 or 3
°
Not to Scale
Figure 4
Attachment C 51 March 7, 2022 Item 06
Del Mar
Fairgrounds
9 8
5 Fire Approaching
from East
Through Crest
Canyon Park
Fire Approaching
from East
Through Crest
Canyon Park
7 6
5 4
10 11

CREST CANYON EVACUATION PLAN
Scenario B Evacuation
Source: ESRI, SanGIS
Evacuation Route Direction
Evacuation Site
Evacuation Route
School
Primary Route
Secondary Route
Neighborhood Route
Traffic Control
All Way Stop
Roundabout
Side Street Stop
Signalized Intersection
Route 10 & 11
Recommended Routes
Route 4
Route 5
Route 6
Route 7
Route 8
Route 9
°
Not to Scale
Figure 5
Attachment C 52 March 7, 2022 Item 06
City of Del Mar
Agenda Report
TO: Honorable Mayor and City Council Members
FROM: Monica Molina, Finance Manager/Treasurer
Ashley Jones, City Manager
DATE: March 7, 2022
SUBJECT: Fiscal Year 2020-2021 Annual Comprehensive Financial Report and Audited Financial Results
REQUESTED ACTION/RECOMMENDATION:

Staff recommends that the City Council receive the Fiscal Year (FY) 2020-2021 Annual Comprehensive Financial Report (ACFR) and audited financial results.

DISCUSSION/ANALYSIS:

The City’s audit firm, CliftonLarsonAllen, LLP (CLA), has completed its audit of the City’s financial statements and notes to the basic financial statements for the fiscal year ended June 30, 2021. Based on the results of their audit, CLA provided the City with an unmodified opinion on the financial statements, which means that the City’s financial statements are free of material misstatements and are in accordance with Generally Accepted Accounting Principles (GAAP). The auditor provided a report with information about the auditor’s responsibilities under generally accepted auditing standards and Government Auditing Standards and OMB Circular A-133 as well as certain communications related to their audit. These communications are contained in Attachment A.

The specific financial documents on which the auditor expresses an opinion are the basic financial statements, and notes to the basic financial statements. These documents, along with the auditor’s opinion letter and management’s discussion and analysis, are the core ACFR documents. Additional documents that make up the ACFR include the letter of transmittal from the City Manager and Finance Manager/Treasurer and a supplemental section, which includes a statistical section presenting detailed information to assist the reader in assessing the economic condition of the City. The ACFR is available on the City’s website at http://www.delmar.ca.us/acfr and is included as Attachment B.

CLA provided the Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and is provided in Attachment C. The purpose of this report is to describe the scope of the auditors’ testing of internal control over financial reporting and compliance, and the results of that testing. The City’s internal control over financial reporting was considered for the limited purpose of expressing an opinion on the financial statements. 1 March 7, 2022 Item 07
City Council Agenda Report
Fiscal Year 2020-2021 ACFR and Audited Financial Results March 7, 2022

Page 2 of 3 ends

Article XIII-B of the California State Constitution places limits on the amount of revenue that can be spent by the State and each local government entity. It is the responsibility of the City to calculate the annual appropriations limit. The City’s auditors are required to review and approve the appropriations calculation as part of their audit of the City. The auditor found no exceptions to the City’s calculation of the appropriations limit. The Independent Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheets No. 6 is included as Attachment D.

Fiscal Year 2020-2021 Financial Results Final Results
On November 1, 2021, staff presented FY 2020-2021 preliminary financial results to the City Council. Since then, the audit has been completed and the ACFR has been prepared and submitted to Government Finance Officers Association for the Certificate of Achievement for Excellence in Financial Reporting Program. There were a few changes to the final financial report in comparison to preliminary results that were previously presented to the City’s Finance Committee and the City Council in November 2021. The significant changes to the General Fund include:

1. A reduction in revenues and expenditures of $3.5 million for the claim settlement that was paid out and reimbursed by the insurance company. Since both the payout and the reimbursement was completed within the same fiscal year, the transaction was adjusted to offset each other in the same account. This item did not have a General Fund Contingency impact.

2. A reporting change was made in FY 2020-2021 in which revenues are considered to be available within 60 days of the end of the current fiscal year, instead of the previous 180-day reporting. This required a reduction of $33,480 in General Fund revenues to be classified as unearned revenue in the current year. Although this adjustment did have an impact on the General Fund Contingency, the revenue is not lost but instead will be recorded in FY 2021-2022.

3. An increase of $89,343 in General Fund expenditures was made to account for additional expenses that were incurred in FY 2020-2021 and recorded after the preliminary financial report was presented.

4. A net increase to transfers of $61,285 due to the Supplemental Law Enforcement unearned revenue that was received after the 60 days reporting period as described above, and not transferred to the General Fund to cover current year law enforcement expenditures.

Attachment E is a Reserve Summary Report with the June 30, 2021, final balances and includes a reconciliation worksheet that compares the preliminary General Fund Contingency to the Final results. In summary, total General Fund revenues for FY 2020- 2021, excluding Measure Q funds, were $17,124,096, and the total General Fund expenditures were $13,066,279. The General Fund contingency reserve balance at June 30, 2021, including encumbrances and continuing appropriations, was $4,408,817. The 2 March 7, 2022 Item 07
City Council Agenda Report
Fiscal Year 2020-2021 ACFR and Audited Financial Results March 7, 2022

Page 3 of 3 ends

General Fund contingency at June 30, 2021, was 31.19% and represents 114 days of operations which exceeds the City Council Contingency goal of 25%. This positive contingency for FY 2020-2021 was largely due to the significant reduction in spending and receiving more revenue than anticipated.

As a result of the positive FY 2020-2021 financial results, on November 1, 2021, the City Council approved staff’s recommendation of transferring additional funds from the General Fund Contingency to other reserves. These transfers include: an additional $822,500 to the Pension Reserves fund; $178,350 to the Equipment Replacement fund; and a $100,000 transfer to the Housing Reserve fund. These approved transfers will be reflected in the FY 2021-2022 Mid-Year Financial Reserve Summary report.

Finance Committee Feedback
On March 1, 2022, the Fiscal Year 2020-2021 ACFR and audited financial results were presented to the Finance Committee. The Committee complimented staff on the concise report and were pleased with the final results. The report was accepted as presented.

FISCAL IMPACT:

There is no fiscal action to be taken by the City Council related to this report.

NEXUS TO CITY COUNCIL PRIORITIES
This item is operational in nature and is not directly related to the City Council list of goals and priorities.

ENVIRONMENTAL IMPACT:

ATTACHMENTS:

Attachment A - Independent Auditors’ Report
Attachment B - Annual Comprehensive Financial Report with Report on Audit by Independent Certified Public Accountants for Year Ended June 30, 2021
Attachment C - Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
Attachment D - Independent Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations Limit Worksheet No. 6
Attachment E - Final Fiscal Year 2020-2021 Financial Report and Reconciliation Worksheet
3 March 7, 2022 Item 07
CLA is an independent member of Nexia International, a leading, global network of independent accounting and consulting firms. See nexia.com/member‐firm‐disclaimer for details.

CliftonLarsonAllen LLP
CLAconnect.com
To the Honorable Mayor and
Members of the City Council
of the City of Del Mar
Del Mar, California
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Del Mar (the City) as of and for the year ended June 30, 2021, and have issued our report thereon dated February 21, 2022.

We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. Professional standards also require that we communicate to you the following information related to our audit.

Significant audit findings
Qualitative aspects of accounting practices
Accounting policies
Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note I to the financial statements.

As described in Note 16 the City implemented the Statement of Governmental Accounting Standards (GASB Statement) No. 84, Fiduciary Activities, in fiscal year 2020-2021 by reclassifying agency funds to custodial funds. Accordingly, the cumulative effect of the accounting change as of the beginning of the year is reported in the Statement of Changes in Fiduciary Net Position as an increase in net position of $177,981.

We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were:
 The annual required contributions, pension expense, net pension liability, and corresponding deferred outflows of resources and deferred inflows of resources for the City’s public defined benefit plans are based on actuarial valuations provided by CalPERS, the plans’ administrator.
 Management’s estimate of the claims payable liabilities related to general liability and workers’ compensation claims are based on estimates by the claims administrators.
4 March 7, 2022 Item 07
City Council
City of Del Mar

Page 2 ends

We evaluated the key factors and assumptions used to develop these estimates in determining that they were reasonable in relation to the financial statements taken as a whole.

Financial statement disclosures
Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. There were no particularly sensitive financial statement disclosures.

The financial statement disclosures are neutral, consistent, and clear.

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

Uncorrected misstatements
Professional standards require us to accumulate all misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management.

Management did not identify and we did not notify them of any uncorrected financial statement misstatements.

Corrected misstatements
Management did not identify and we did not notify them of any financial statement misstatements detected as a result of audit procedures.

Disagreements with management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. No such disagreements arose during our audit.

Management representations
We have requested certain representations from management that are included in the management representation letter dated February 21, 2022.

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

Significant issues discussed with management prior to engagement We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to engagement as the entity’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our engagement.
5 March 7, 2022 Item 07
City Council
City of Del Mar

Page 3 ends

Other information in documents containing audited financial statements With respect to the required supplementary information (RSI) accompanying the financial statements, we made certain inquiries of management about the methods of preparing the RSI, including whether the RSI has been measured and presented in accordance with prescribed guidelines, whether the methods of measurement and preparation have been changed from the prior period and the reasons for any such changes, and whether there were any significant assumptions or interpretations underlying the measurement or presentation of the RSI. We compared the RSI for consistency with management’s responses to the foregoing inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Because these limited procedures do not provide sufficient evidence, we did not express an opinion or provide any assurance on the RSI.

With respect to the combining and individual non-major fund financial statements and schedules (collectively, the supplementary information) accompanying the financial statements, on which we were engaged to report in relation to the financial statements as a whole, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period or the reasons for such changes, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We have issued our report thereon dated February 21, 2022.

The introductory and statistical sections accompanying the financial statements, which are the responsibility of management, were prepared for purposes of additional analysis and are not a required part of the financial statements. Such information was not subjected to the auditing procedures applied in the audit of the financial statements, and, accordingly, we did not express an opinion or provide any assurance on it.
* * *
This communication is intended solely for the information and use of the City Council and management of the City of Del Mar and is not intended to be, and should not be, used by anyone other than these specified parties.

CliftonLarsonAllen LLP
Irvine, California
February 21, 2022
6 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

WITH REPORT ON AUDIT BY

INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
YEAR ENDED JUNE 30, 2021

PREPARED BY

ADMINISTRATIVE SERVICES DEPARTMENT

MONICA MOLINA

FINANCE MANAGER/TREASURER
7 March 7, 2022 Item 07
(This page intentionally left blank)
8 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021

INTRODUCTORY SECTION

LETTER OF TRANSMITTAL I

CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL

REPORTING (GFOA) III

DIRECTORY OF OFFICIALS IV

ORGANIZATIONAL CHART V

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
REQUIRED SUPPLEMENTARY INFORMATION:

MANAGEMENT’S DISCUSSION AND ANALYSIS 7

FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 11
STATEMENT OF ACTIVITIES 12

FUND FINANCIAL STATEMENTS

GOVERNMENTAL FUNDS
BALANCE SHEET 17

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION 18

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 19

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES 20

PROPRIETARY FUNDS
STATEMENT OF NET POSITION 21

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION 22
STATEMENT OF CASH FLOWS 23

FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION 24
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 25
NOTES TO FINANCIAL STATEMENTS 26
9 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021

REQUIRED SUPPLEMENTARY INFORMATION

MISCELLANEOUS PENSION PLAN
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY 60 SCHEDULE OF CONTRIBUTIONS – DEFINED BENEFIT PENSION PLAN 62

SAFETY PENSION PLAN
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY 64 SCHEDULE OF CONTRIBUTIONS – DEFINED BENEFIT PENSION PLAN 66 BUDGETARY COMPARISON SCHEDULE – GENERAL FUND 68
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 70

SUPPLEMENTARY INFORMATION

GENERAL FUND
COMBINING BALANCE SHEET 74

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 75

NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET 77

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 79

BUDGETARY COMPARISON SCHEDULES
GASOLINE TAX SPECIAL REVENUE FUND 81
OPEN SPACE SPECIAL REVENUE FUND 82
SUPPLEMENTAL LAW ENFORCEMENT SPECIAL REVENUE FUND 83
REGIONAL COMMUNICATIONS SYSTEM SPECIAL REVENUE FUND 84
GRANTS SPECIAL REVENUE FUND 85
HOUSING SPECIAL REVENUE FUND 86
AB 939 SPECIAL REVENUE FUND 87
RMRA SPECIAL REVENUE FUND 88
TRANSNET II CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND 89 CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND – MAJOR FUND 90

CUSTODIAL FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION 92
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 93
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CITY OF DEL MAR, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2021

STATISTICAL SECTION (UNAUDITED)
DESCRIPTION OF STATISTICAL CONTENTS 95

FINANCIAL TRENDS
NET POSITION BY COMPONENT 96
CHANGES IN NET POSITION 98
FUND BALANCES OF GOVERNMENTAL FUNDS 100
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 102
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE 105
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION 106

REVENUE CAPACITY
ASSESSED VALUE OF PROPERTY BY USER CODE 107
ESTIMATED VALUE OF TAXABLE PROPERTY 109
CONSTRUCTION PERMITS 111
PROPERTY TAX RATES – ALL OVERLAPPING GOVERNMENTS 112
TEN LARGEST PROPERTY TAXPAYERS 113
TOP 25 SALES TAX PRODUCERS 114
PROPERTY TAX LEVIES, TAX COLLECTIONS, AND DELINQUENCIES 115

DEBT CAPACITY
RATIO OF OUTSTANDING DEBT BY TYPE 116
PLEDGED-REVENUE COVERAGE 117
RATIO OF GENERAL BONDED DEBT OUTSTANDING 118
DIRECT AND OVERLAPPING BONDED DEBT 119
SCHEDULE OF LEGAL DEBT MARGIN 120

DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC AND ECONOMIC STATISTICS 122
TOP TEN PRINCIPAL EMPLOYERS 124

OPERATING INFORMATION
FULL-TIME EMPLOYEES BY FUNCTION 125
OPERATING INDICATORS BY FUNCTION 126
CAPITAL ASSET STATISTICS BY FUNCTION 127
MISCELLANEOUS STATISTICS 128
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INTRODUCTORY SECTION
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February 21, 2022
Honorable Mayor, Councilmembers, and the Citizens of the City of Del Mar, California

LETTER OF TRANSMITTAL
FISCAL YEAR 2020-2021 ANNUAL COMPREHENSIVE FINANCIAL REPORT It is a pleasure to present the Fiscal Year 2020-2021 Annual Comprehensive Financial Report (ACFR) for the City of Del Mar. These financial statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) and audited in accordance with generally accepted auditing standards. Responsibility for the accuracy of the data, the completeness and reliability of the presentation, including all disclosures, rests with City management.

To provide a reasonable basis for making the representations shown in this report and to compile sufficient reliable information for the preparation of the City’s financial statements, the management of the City has established a comprehensive internal control framework designed to protect the City’s assets from loss, theft, or misuse. Because the costs of internal controls should not exceed their benefits, the City’s internal controls have been designed to provide a reasonable, rather than absolute, assurance that the financial statements will be free from material misstatements.

The City’s financial statements have been audited by certified public accountants, CliftonLarsonAllen (CLA) LLP. The independent auditor concluded, based on the audit, that there was a reasonable basis for rendering an unmodified opinion on the City’s financial statements for the fiscal year ended June 30, 2021.

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. The MD&A complements this letter of transmittal and should be read in conjunction with it.

Profile of the City of Del Mar
Del Mar is a coastal charter City incorporated in 1959. Del Mar borders the City of San Diego on the south and the City of Solana Beach on the north, and the City is governed by a five-member City Council under the Council/Manager form of government. The City Council is elected at large with staggered four-year terms and the positions of Mayor and Deputy Mayor rotate amongst Council members annually.
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Del Mar is a small city of 4,258 residents, as reported on the Department of Finance population estimates as of January 1, 2021 and is primarily a residential community with substantial tourist appeal covering approximately 2.2 square miles and is known for its beautiful beaches. The City is predominantly built-out; however, redevelopment and revitalization opportunities exist in its commercial areas, and replacement of existing houses with updated and often larger and more elaborate dwellings is commonplace in its residential areas. The 22nd District Agricultural Association (DAA), which manages and operates the Del Mar Fairgrounds and is home to the Del Mar Thoroughbred Club, has a significant presence in the City, encompassing approximately onefifth of the City’s area. The 22nd DAA is a State of California agency and is managed by a board of directors appointed by the Governor.

This report includes financial statements for the City and the financial activity related to the Del Mar Public Facilities Corporation. As a full-service City, Del Mar provides its citizens and customers with fire; marine safety; parks; planning; public works; water, wastewater, and clean water services; and contracts for waste collection with Waste Management, cooperative fire management services with the cities of Encinitas and Solana Beach, and law enforcement services with the San Diego County Sheriff.

Budgetary Process
The Del Mar City Council (Council) adopted the City’s two-year Operating and Capital Budget for Fiscal Years 2019-2020 and 2020-2021, on June 17, 2019. The budget process began with the City Council developing priorities and initiatives which provided the framework around which staff resourced and proposed a budget for Council consideration. It is the City’s practice that a Budget Update is presented to the City Council for the second year of a two-year budget cycle, of which the Fiscal Year 2020-2021 Budget Update was presented to the City Council in June 2020. Due to the COVID-19 pandemic, the Fiscal Year 2020-2021 Budget Update was unique in that it included major revenue and expenditure reductions that will be explained further later in this transmittal letter.

The budget is monitored monthly by the City’s Finance Division staff and department directors using financial reports which compare actual revenues and expenditures to date with budgeted amounts. Typically, semi-annual financial reports are presented and reviewed by the City’s Finance Committee before being presented to the Council at regularly-scheduled meetings. However, as a result of the significant financial challenges for the City related to COVID-19, the frequency for financial reporting to the Finance Committee and City Council was increased to quarterly for Fiscal Year 2020-2021. Other financial management tools used in conjunction with the budget process are the City’s reserve policies, the ten-year Capital Improvement Program (CIP), and the 10-year financial forecast. This year, due to the significant financial effects of the COVID-19 pandemic, some financial management tools were deferred until resources were recovered and available.

Throughout each fiscal year, the Council may increase or decrease the budget, as needed, by resolution. The City Manager has the authority to move appropriations within a fund between programs; however, any adjustments between funds must be approved by the City Council.

Factors Affecting the City’s Financial Condition
Del Mar relies heavily on the local real estate market, specifically property tax revenues, and tourism, as major revenue sources. Over the last decade, Del Mar has continued to see increases in assessed valuations even during the sudden recessionary period triggered by the pandemic. Property taxes increased by 7.2% in Fiscal Year 2020-2021 compared to the previous year. The annual increase in assessed value is primarily attributable to home sales at a higher than previously assessed value; increases in value due to new construction; and up to a two-percent (2%) annual increases permitted 16 March 7, 2022 Item 07
under Proposition 13. Assessed valuation is projected to continue to increase as demand for coastal property remains quite strong. In addition, since Del Mar has been largely built-out for many years with properties occupied by long-time residents, many of Del Mar’s residential properties carry very low assessed values compared to current market value; and as these properties turn over, they are reassessed at higher values.

Tourism is a significant industry and a major source of revenue for the City. With its beautiful beaches and moderate climate, Del Mar is usually a popular destination for both local visitors and vacationing travelers. Starting in Fiscal Year 2016-2017, the City started contributing one-percent (1%) of Transient Occupancy Tax (TOT) to the Del Mar Village Association (DMVA) for destination marketing efforts. This amounted to $176,962 in Fiscal Year 2020-2021. This allows the City to foster and encourage broader efforts to market the Del Mar village, including hotels, as well as restaurants and retailers. An annual report is provided to the City Council on the status of these efforts.

Transient Occupancy Tax (TOT) collections was one of the largest revenue sources that was impacted by the COVID-19 pandemic. This revenue source decreased by approximately 40% during Fiscal Year 2020-2021, when compared to the FY 2018-2019 which was the last full pre-pandemic year. In November 2020, Governor Newsom issued a modified stay at home order to protect the health and well-being of all Californians. This impacted tourism for the City of Del Mar, as only essential business hotel stays were allowed. Between November 2020 and February 2021, the City received approximately $558,000 less in TOT revenue in comparison to the same four-month period the previous year (non-pandemic year).

The pandemic also had a major impact on sales tax revenues. Receipts for the last two quarters of the year (Jan-June 2021), indicate that sales tax activity especially in restaurants and hotels are starting to slowly recover. As a result of the lack of revenue generating event activity at the Fairgrounds and the Governor’s stay at home order, sales tax revenues for the year are approximately $1 million lower than Fiscal Year 2018-2019, which was the last full year not impacted by the pandemic. Although we are starting to see a recovery in sales tax, revenues came in $340,000 lower when compared to the previous year.

In November 2016, Del Mar voters approved Measure Q, a one-percent (1%) general sales tax measure. The new sales tax was implemented in April 2017, and amounted to $2.3 million in Fiscal Year 2020-2021 revenues. To date, Measure Q has generated approximately $11 million in district tax revenues. Though no specific projects or uses were officially designated as part of the voterapproved general tax measure, the City Council has identified use of the additional revenue for community reinvestment and infrastructure type projects such as the Downtown Streetscape Project, implementation of the Shores Park Master Plan, and the Utility Undergrounding Project. The Downtown Streetscape Project was finalized in Fiscal Year 2019-2020, and the Utility Undergrounding Project began its preliminary phase at the end of Fiscal Year 2020-2021.

Similar to sales tax, the COVID-19 pandemic had a major impact on Measure Q revenues. Receipts for the year indicate a decrease of approximately $644,000, or 21.7%, when compared to Fiscal Year 2018-2019, which was the full pre-pandemic year. Due to the financial crisis caused by the pandemic, the City Council directed staff to hold off in proceeding with any Measure Q projects. As the year progressed and Measure Q revenues started to stabilize, the City Council authorized staff to proceed with the first phase of the Undergrounding Project.

Since the beginning of the pandemic, until the end of Fiscal Year 2020-2021, Del Mar lost approximately $3 million in General Fund revenues, not including Measure Q funds. With the 17 March 7, 2022 Item 07
direction of the City Council to reduce Fiscal Year 2020-2021 expenditures to continue with only essential items only, Del Mar positioned itself well to weather the economic instability.

The City’s fiscally conservative strategic approach has been to identify new revenue sources while examining ways to reduce expenditures by considering alternatives to providing services and managing City operations. The City has always maintained a low level of fixed obligations and has adopted prudent reserve policies.

In Fiscal Year 2014-2015, the Pension Reserve Fund was established as a way to set-aside monies for future anticipated employee pension obligation costs. As a result of financial losses related to the pandemic, there was no budgeted transfer of funds to the Pension Reserve Fund in FY 2020-2021.

Although revenue for TOT and sales tax are not yet at pre-pandemic levels, revenues for Fiscal Year 2020-2021 came in higher than projected, and $1 million was authorized to transfer to the Pension Reserve Fund in Fiscal Year 2021-2022.

The City continues to pursue grant opportunities and low-cost financing for its projects.

Additionally, the City has been able to fund certain projects through the generosity of its residents and community. We believe that the projects undertaken this fiscal year and the accomplishments highlighted as follows not only help the City better serve Del Mar residents and businesses, but they assist in building a solid foundation towards keeping the City fiscally sound and well positioned to sustain its financial health into the future.

Final results for FY 2020-2021, indicate that revenues came in higher, and expenditures came in lower than final projections, which is discussed in detail in the Management’s discussion and analysis section of this report.

Accomplishments
Based on direction by the City Council, highlighted below are the City’s accomplishments this fiscal year.

Capital Improvement Projects
Due to the unknown impact in revenues that pandemic was going to have to Fiscal Year 2020-2021 revenues, in June 2020, the City Council was presented with an Budget Update for the coming year which included deferring all capital projects that were not required or in the middle of being completed. However, several milestones were reached for capital improvement projects during Fiscal Year 2020-2021, including:
 Developed 10-year Capital Improvement Program for City’s infrastructure needs, comprised of Open Space, Facilities, Storm Drain, Streets, Bridges, Wastewater, and Water Projects. Also includes significant equipment purchases, planning schedules, and options for financing.

Reduced FY2019/2020 and FY2020/2021 CIP expenditure budgets and CIP staff to focus exclusively on critical/essential projects during COVID-19 budget crisis.  Completed several Preliminary Engineering Phases of the Camino del Mar Bridge Replacement Project including Geotechnical Borings, Hydraulic Analysis, and Bridge Alternative Selection.  Continued design and construction work on the City’s multi-year program to systematically identify, prioritize, and implement water and wastewater and roadway pavement rehabilitation projects.
 Completed emergency responses, geological studies, and temporary repair projects for the 2019 Jimmy Durante Boulevard Bluff Failure and the 2020 Camino del Mar Bluff Failure. 18 March 7, 2022 Item 07
 Completed the 21st Street Tennis Courts Drainage Ditch and Court Street Park Project.  Completed the 22nd Street, Camino del Mar, and Coast Boulevard Pedestrian, Vehicle, and Bicycle Improvements Project.
 Completed Seagrove Park Lighting Replacement and Pathway Improvements Project.  Completed Design and Construction of Powerhouse Walkway Lighting Project in collaboration with the Parks and Recreation Committee.
 Completed habitat restoration phase of the Torrey Pines Bridge Seismic Rehabilitation Project.

Planning and Community Development
The Planning and Community Development Department is responsible for four functional areas within the City, which include Long Range Planning, Current Planning, Building & Safety, and Code Enforcement. In response to ongoing changes in regulations and service needs applicable since March 2020 in response to the COVID-19 pandemic, the department continued to provide Planning and Building Services with options for 100% electronic and virtual meeting access in addition to limited in-person counter service. To facilitate economic recovery for local businesses, staff prepared and processed an ordinance with various parking-related changes. The City’s 5th Cycle Housing Element planning period (2013-2021) ended on April 15, 2021 and the 6th Cycle Housing Element (planning period 2021-2029) was adopted by the City Council on March 25, 2021. In 2021, the City of Del Mar City Council adopted actions to implement the outstanding housing program items for the 5th Cycle Housing Element (planning period 2013-2021) as necessary for compliance with State housing law; and adopted a Program Environmental Impact Report (PEIR) and 6th Cycle Housing Element (planning period 2021-2029) in consideration of recommendations made by the 6th Cycle Housing Element Ad Hoc Citizens’ Task Force. Staff also prepared and submitted permit applications for federal and state approvals of the Sand Compatibility and Opportunistic Program (SCOUP), which is a City Council priority in the plan to implement ongoing sand nourishment to minimize flood risk.

Technological & Administrative Enhancements
The City was able to maintain a high level of service to the public while allowing remote teleworking and streamlining processes for remote public meetings.

Looking Forward -- Citywide Planning Activities
Upcoming Capital Improvement Projects
As part of the City’s 10-year Capital Improvement Program (CIP), there will be continued reinvestment in Del Mar infrastructure. Several planned projects for Fiscal Year 2021-2022 include:
 Continue preliminary engineering and environmental permitting activities for River Path Del Mar Phase 3, connecting the Grand Avenue Bridge to Crest Canyon Trailhead.  Complete the Powerhouse Park Walkway Lighting Project.  Complete essential building repairs to 17th Street/20th Street/25th Street Lifeguard Buildings.  Complete Design and Procurement of Tot Lot Replacement Project.  Complete Penasquitos Lagoon Storm Drain Repair Project Habitat Restoration Phase.  Complete Design of Category 1 Storm Drain Repairs.
 Complete preliminary engineering phase of the Camino del Mar Bridge Replacement Project.  Complete the Clean Water Rate Study and commencement of a proactive Storm Drain Capital Improvement Program.
 Continue facility maintenance program for City Hall, City buildings, various lifeguard towers, and public facilities throughout the City.
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 Complete construction of annual Water, Wastewater, and Paving, Capital Improvement Projects.  Continue the Citywide Pavement Rehabilitation Program based on a system-wide condition assessment and the prioritization program.
 Complete Resurfacing and Restriping Court Street Tennis Courts.  Complete Restriping of Jimmy Durante Boulevard.
 Complete Methacrylate Treatment of Torrey Pines Bridge.

Utility Undergrounding Project
Although the citywide utility undergrounding project was originally put on hold in March 2020 by the City Council due to the financial impacts and uncertainty caused by the COVID-19 pandemic, the City Council voted March 15, 2021, to reinitiate the project, starting initially with taking over the design of a smaller resident-initiated project (Tewa Court/10th Street Utility Undergrounding District, officially formed May 17, 2021), and giving staff direction to bring back the formation steps of two larger areas, Area 1A (Stratford Court) and Area X1A (Crest Canyon), which occurred July 12, 2021. The Tewa Court/10th Street project is slated to begin construction in winter 2022, while design for Areas 1A and X1A is anticipated to take approximately 18-24 months.

Del Mar Shores Park Master Plan
In 2014, the City initiated the master planning process for the Del Mar Shores Park, located on 5.3 acres immediately south of downtown property, to help envision future activities for the site. The site currently is home to The Winston School (occupying buildings leased from the City), community offices used by two Del Mar nonprofit groups, and park land. The master plan process will determine a long-term vision for this prominent open space and develop a strategy to implement the community’s desires. All work on the Shores Park Master Plan was put on hold by the City Council due to the financial impacts and uncertainty caused by the COVID-19 pandemic.

Housing Element Implementation
The City’s 5th Cycle Housing Element planning period (2013-2021) ended on April 15, 2021. The 6th Cycle Housing Element (planning period 2021-2029) was adopted by the City Council on March 25, 2021. The City is awaiting certification of the 6th Cycle Housing Element by the State Department of Housing and Community Development (HCD) as re-adopted by the City Council on December 13, 2021. Staff is actively seeking grant funding to facilitate Housing Element program implementation and has already started implementing its housing action programs, including efforts to obtain feasibility studies and affordable housing consulting services/technical expertise as necessary to secure a housing agreement with the 22nd District Agricultural Association to provide affordable housing opportunities at the Del Mar Fairgrounds. The City is also in process of preparing a new Environmental Justice Element to demonstrate the City’s commitment to affirmatively further fair housing. The Environmental Justice Element will be processed as a new element within the City’s Community Plan (General Plan) with a target completion date of December 2022.

Hazard Mitigation and Adaptation Planning
The City is in process of preparing and processing an amendment to the General Plan Safety Element to identify its hazard mitigation strategies with a target completion date of December 2022. The City is continuing to seek grant funding and federal and state agency permit approvals to implement the associated Sand Compatibility Opportunistic Use Program (SCOUP) and associated beach nourishment in accordance with the City’s priority adaptation strategy to minimize flood risk. Staff also submitted an application for FEMA technical assistance to facilitate development of a conceptual plan for a living levee along the San Dieguito riverbanks as an adaptation measure to reduce the risk of river flooding in adjacent neighborhoods. 20 March 7, 2022 Item 07
California State Senate Bill 9 (SB 9) Implementation
In 2022, the Planning and Community Development Department will be preparing an ordinance and objective design standards for City Council consideration and approval and will process a Local Coastal Program Amendment with the California Coastal Commission certification in order begin processing applications for duplex development and urban lot splits in accordance with the provisions of SB 9.

Technological & Administrative Enhancements
Looking ahead, for Fiscal Year 2021-2022, other initiatives underway related to technological enhancements include the upgrade of the City’s Permitting and Licensing software to automate processes and provide online services to the public, including online payments.

Financial Policies
General Fund Contingency (GFC) Reserve
Historically, it has been the City’s policy and practice to establish a budget that is balanced and has a minimum contingency reserve of 10% of annual operating expenditures in the General Fund in order to ensure the City’s continuing financial health. However, during the preparation of the Fiscal Years 2019-2020 and 2020-2021 Operating and Capital Budget, the City Council established a goal to increase the GFC Reserve by one percent (1%) each year until it reaches a 25% reserve, or 90 days of operations. As a result of the economic impacts to the City’s related to the COVID-19 pandemic, the goal to reach a 25% General Fund Contingency has been temporarily deferred until such time that the City has economically recovered.

In June 2020, based on financial projections and the uncertain economic impact the pandemic was anticipated to have on Del Mar’s revenue, the City Council approved a Fiscal Year 2020-2021 updated budget that continued to maintain essential services with very limited spending. Although the City has not returned to pre-pandemic revenue levels, Fiscal Year 2020-2021 revenues came in higher than projected and expenditures remained at or below projections. As such, the City will not have to use any reserves during this fiscal year. The final GFC for year ending June 30, 2021, is

29.86% or 109 days of operations, which is well above the required minimum contingency reserve.

Positive results allowed the City Council to approve a transfer of $1.10 million to other reserves in Fiscal Year 2021-2022, to begin replenishing reserves that are underfunded since a deferral of transfers was required to deal with the economic impact of the COVID-19 pandemic.

Finnell Plan
In 2007, the City Council adopted a financial objective, referred to as the Finnell Plan, to provide funding for future capital projects. The Finnell Plan was created in order to provide an automatic funding mechanism for capital projects, by constraining the growth in operating expenditures to be below the growth in revenues. The difference is then transferred to the CIP Reserve to assist in funding the City’s capital projects. Due to the economic crisis caused by the pandemic, implementation of the Finnell Plan was deferred in FY 2020-2021 and no transfer was made to the CIP Reserve this year.
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Awards
The Government Finance Officers’ Association (GFOA) has awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Del Mar for its Comprehensive Annual Financial Report (CAFR) for 24 consecutive years. In order to be eligible to receive a GFOA award the City must publish an easily readable and comprehensive report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

Acknowledgments
We would like to thank the City Council of the City of Del Mar and the Executive Team for their continued leadership in the pursuit of excellence in financial reporting and for maintaining the highest level of professional standards in the management of Del Mar’s finances. We would also like to thank the City’s Finance Committee for their contributions to the City’s continued financial viability. This report could not have been accomplished without the professionalism and dedicated services of the entire Del Mar team.

Respectfully submitted,
____________________________ ________________________________ Ashley Jones Monica Molina
City Manager Finance Manager/Treasurer
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(iii)
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CITY OF DEL MAR, CALIFORNIA

DIRECTORY OF OFFICIALS
YEAR ENDED JUNE 30, 2021
(iv)

CITY COUNCIL
Ellie Haviland
Mayor
Terry Gaasterland Dave Druker
Deputy Mayor Councilmember
Sherryl Parks Dwight Worden
Councilmember Councilmember

CITY MANAGER
Christa (CJ) Johnson
Assistant City Manager City Attorney
Kristen M. Crane Leslie Devaney
Director of Planning and Administrative
Community Development Services Director
Joseph Smith Ashley Jones
Public Works Director of Community Services
Director and Lifeguard Chief
Joe Bride Jon Edelbrock
Sheriff Captain Fire Chief
Herbert Taft Mike Stein
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CITY OF DEL MAR, CALIFORNIA

ORGANIZATIONAL CHART
YEAR ENDED JUNE 30, 2021
(v)
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FINANCIAL SECTION
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CLA is an independent member of Nexia International, a leading, global network of independent accounting and consulting firms. See nexia.com/member‐firm‐disclaimer for details. (1)
CliftonLarsonAllen LLP
CLAconnect.com
INDEPENDENT AUDITORS’ REPORT
City Council
City of Del Mar, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, business-type activities, each major fund, and the aggregate remaining fund information of the City of Del Mar, California (the City), as of and for the year ended June 30, 2021, and the related notes to the basic financial statements, which collectively comprise the City’s financial statements as listed in the table of contents.

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

Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

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

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
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City Council
City of Del Mar, California
(2)
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter
As discussed in Note 16 to the financial statements, the City implemented the Statement of Governmental Accounting Standards (GASB Statement) No. 84, Fiduciary Activities, in fiscal year 2020-2021, which resulted in a restatement. Our opinions are not modified with respect to this matter.

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedule – general fund and related notes, and the miscellaneous and safety pension plans schedules of proportionate share of the net pension liability and schedules of contributions, as listed in the table of contents, be presented to supplement the financial statements. Such information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the 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 financial statements, and other knowledge we obtained during the audit of the financial statements. We do not express an opinion or provide any assurance on the required supplementary information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s financial statements. The introductory section, combining and individual fund financial statements and schedules (supplementary information), and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the financial statements.

The supplementary information, as listed in the table of contents, is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America.

In our opinion, the supplementary information is fairly stated in all material respects in relation to the financial statements taken as a whole.
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City Council
City of Del Mar, California
(3)
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 21, 2022, on our consideration of the City’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 the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
February 21, 2022
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MANAGEMENT’S DISCUSSION AND ANALYSIS
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MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Del Mar (City), we offer readers this discussion and analysis of the City’s financial performance for the fiscal year ended June 30, 2021. The accuracy of the data presented and the completeness and fairness of the presentation, including all disclosures in this report, are the responsibility of the City. The report has been prepared in accordance with Generally Accepted Accounting Principles (GAAP) as promulgated by the Governmental Accounting Standard Board (GASB). Readers are encouraged to consider the information presented here in conjunction with additional information, which can be found in the Introductory Section of this report, and the City’s financial statements, which follow this discussion.

FINANCIAL HIGHLIGHTS
Economic Background
The City of Del Mar continues to be in a stable financial position. The City’s largest revenue source is its very stable property tax base, which has increased each year since 1995. Due to the City’s highly desirable location on the coast, immediately north of the City of San Diego, its real estate market does not typically experience the downturns that the inland areas experience in periods of economic decline. As the San Diego region continues to develop, Del Mar has become increasingly desirable, and this is reflected in its property values. The two next largest revenues, transient occupancy tax (TOT) and sales and use tax (sales tax), are heavily tourist based, and reflect the decreased economic activity experienced in Del Mar, and throughout the nation, as a result of the COVID-19 pandemic.

In March of 2020, during Fiscal Year 2019-2020, Governor Newsom issued a stay at home order to protect the health and well-being of all Californians as a result of the Coronavirus. Similar orders were imposed throughout the country, and the rest of the world, which significantly reduced the volume of visitors that come to Del Mar each year. The economic loss that occurred in the last four months of that fiscal year, which is the beginning of the peak revenue generating period for Del Mar, was primarily in the areas of TOT and sales tax. Continuing on into Fiscal Year 2020-2021, the City Council prepared the City with the idea that the pandemic will continue to impact the first half of the year with the anticipation of a slight economic recovery in the second half of the year. Although the pandemic still continues to date, the conservative projections approved by the City Council for Fiscal Year 2020-2021, has helped the City continue to be in a stable financial position. Although revenues during Fiscal Year 2020-2021 have not recovered to pre-pandemic levels, the City did see positive revenue trends during the year.
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In Fiscal Year 2020-2021, the City received approximately $1.2 million less in TOT; $1.1 million less in sales tax; and $0.52 million less in Measure Q revenues in comparison to a Fiscal Year 2018-2019, which is the last full pre-pandemic fiscal year. On a positive note, the City gained approximately $0.44 million in property tax during the year, and another $0.83 million in parking violation and meter revenue when compared to Fiscal Year 2019-2020. In total, the current net loss for the year was approximately $1 million in General Fund revenues (not including Measure Q), which represents a 5.68% loss when compared to the last full prepandemic fiscal year in 2018-2019.

This year, the Governmental Accounting Standards Board (GASB) implemented Statement No. 84, which improves guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activieis should be reported. The City has implemented this Statement and is discussed on Note 17 of the Notes to Basic Financial Statements section of this report.

The discussion and analysis below compares Fiscal Year 2020-2021 (FY 20-21) to Fiscal Year 2019-2020 (FY 19-20). All variances are relative to FY 19-20 results. FY 20-21 financial highlights include the following:

Financial Highlights
• The City’s total assets in excess of its liabilities as of June 30, 2021, were $97.57 million.
• Citywide total net position increased by $3.08 million (3.26%) during the current fiscal year, indicating a consistent stable financial condition. The change in net position is largely due to the increase in total cash and investments and lower current liabilities at the end of the year, which was a result of keeping expenses at or below projections and receiving more revenue than anticipated.  A net increase in total assets of $1.78 million (1.3%) is primarily due to the net of an increase of $4.81 million (2.78%) in current assets and a decrease in capital assets of $3.03 million (2.62%). The Citywide non-current asset loss is largely related to how capital assets are reported. In Fiscal Year 2020-2021, most capital projects were deferred and therefore the City had lower than usual capital expenses. However, total depreciation on assets exceeded the added value of new assets leading to an overall capital asset loss for the year.
 As of June 30, 2021, the City’s governmental funds reported combined fund balances of $11.63 million, which is an increase of $4.14 million (55.34%) from June 30, 2020.

The increase in fund balance is mainly attributable to continuing to only provide essential services and the economy recovering at a faster pace than anticipated, which is reflected in the revenue received for the year. Of the $11.63 million in fund balance, $0.05 million is non-spendable for prepaid items; $0.70 million is restricted; $0.15 million is committed to the parks and community center; $3.13 million is assigned for specific activities; and $7.60 million is unassigned. 37 March 7, 2022 Item 07
 At the end of the current fiscal year, the fund balance for the General Fund is $10.47 million. This balance is available for spending at the City Council’s discretion, and is equal to 76.88% of the total fiscal year expenditures of $13.62 million, and 53.13% of total revenues of $19.71 million, before other financing sources (uses). The Capital Projects Fund has a fund balance of $0.31 million, and other non-major governmental funds have combined fund balances of $0.85 million, at June 30, 2021.

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements, which are made up of three components: 1) government-wide financial statements; 2) fund financial statements; and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves.

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.

The Statement of Net Position presents information on the City’s assets and deferred outflows of resources and total liabilities, and deferred inflows of resources, with the difference between the two reported as total 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.

The Statement of Activities presents information showing how the government'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., earned but unused vacation and compensated time leaves).

Both of the government-wide financial statements 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, public works, and parks and recreation.

The business-type activities (proprietary fund type) of the City include the Water, Wastewater, and Clean Water Funds.

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 City’s funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
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Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.

Unlike the government-wide financial statements, governmental fund financial statements focus on near-term 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. However, this information does not encompass the additional long-term focus of the government-wide statements, reconciliations that explain the relationship or differences between governmental funds and governmental activities following each of the governmental fund statements.

The City maintains twelve 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 two funds that are considered to be major funds. These two funds consist of the General Fund, and the Capital Improvement Program Fund. Data from the other ten governmental funds are combined into a single, aggregated presentation and are considered non-major funds.

A budgetary comparison statement has been provided for the funds that have an adopted budget to demonstrate compliance with this budget.

Proprietary Funds. The City of Del Mar maintains two different types of proprietary funds.

Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. Enterprise funds are used to account for the City’s Water, Wastewater, and Clean Water activities. Internal Service Funds are an accounting device used to accumulate and allocate costs internally among the City’s various functions. The City uses an internal service fund to account for its self-insured Workers’ Compensation activities. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for Water and Wastewater, which are considered to be major funds, and Clean Water, which is considered a non-major enterprise fund. Conversely, the Internal Service Fund is combined into a single, aggregated presentation in the proprietary fund financial statements.

Fiduciary Funds. The City maintains one type of fiduciary fund, the Custodial Funds. The fiduciary fund is used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, or other governments. The Custodial Funds account for five Assessment District (A.D.) bond issues, Stratford and Luneta Undergrounding A.D. 1989-01; Seawall Refinance A.D. 1999-01; Ocean View/Pines A.D. 2005-01; North Hills Undergrounding A.D. 2007-01; and Sunset Undergrounding A.D. 2007-02.

Since the resources of the fiduciary fund are not available to support the City’s own programs, they are not reflected in the government-wide and primary governmental fund financial statements but are reported in the fund financial statements. 39 March 7, 2022 Item 07
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. The notes to the basic financial statements can be found in this report.

Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain Required Supplementary Information concerning the City’s progress as compared to the budget. The Required Supplementary Information section can be found in this report.

GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position
The analysis that follows focuses on total net position (Table 1) and changes in net position (Table 2) of the City’s governmental and business-type activities. The City’s net position is made up of three components: net investment in capital assets; restricted net position; and unrestricted net position.

As noted earlier, net position may serve as a useful indicator of a government's financial position over time. In the case of the City of Del Mar, combined net position (governmental and business-type activities) totaled $97.57 million as of June 30, 2021. This is an increase of $3.08 million (3.26%), compared to June 30, 2020. 2021 2020 2021 2020 2021 2020
Current assets $15,214,972 $11,336,123 $6,922,637 $5,991,431 $22,137,609 $17,327,554 Capital assets 89,820,875 91,923,923 26,117,711 27,044,950 115,938,586 118,968,873 Total assets 105,035,847 103,260,046 33,040,348 33,036,381 138,076,195 136,296,427 Deferred outflows of resources 2,181,463 2,220,410 592,551 652,873 2,774,014 2,873,283 Current liabilities 3,629,514 3,266,785 1,688,930 1,713,207 5,318,444 4,979,992 Non-current liabilities 28,700,149 29,450,904 9,012,133 9,573,806 37,712,282 39,024,710 Total liabilities 32,329,663 32,717,689 10,701,063 11,287,013 43,030,726 44,004,702 Deferred inflows of resources 202,563 506,354 49,655 169,407 252,218 675,761 Net investment in capital assets 72,058,048 73,838,956 20,447,077 20,418,606 92,505,125 94,257,562 Restricted 949,920 679,422 - 563,791 949,920 1,243,213
Unrestricted 1,677,116 (2,261,965) 2,435,104 1,250,437 4,112,220 (1,011,528) Total net position $74,685,084 $72,256,413 $22,882,181 $22,232,834 $97,567,265 $94,489,247 Governmental Activities Business-type Activities
TABLE 1

CITY OF DEL MAR

NET POSITION
Total
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The largest component of the City’s net position, $92.51 million, is net investment in capital assets (e.g., land, buildings, improvements, equipment, construction in progress, and infrastructure), and is less any related debt, used to acquire those assets, that is outstanding. This decreased by $1.75 million (1.86%) from the prior fiscal year. As mentioned above this is related to the reporting of depreciation in capital assets in which the depreciation for the year exceeded the value of capital expenditures. The City uses these capital assets to provide services to citizens and they are not available for future spending.

The restricted portion of the City’s total net position, which represents resources subject to external restrictions on how they may be used by the City, is $0.95 million. This had a decrease of $0.29 million (24.83%) from the prior fiscal year’s amount of $1.24 million. The remaining unrestricted net position of $4.11 million, which reflects an increase of $5.12 million (508.06%) from the prior year, is largely due to revenues exceeding expenditures for the current year.

As of June 30, 2021, the City has positive balances in both categories of governmental and business-type net position. The total net position in the governmental activities increased by $2.43 million (3.36%) and the total net position in business-type activities increased by $0.65 million (2.92%).

Changes in Net Position
The analysis that follows in Table 2 focuses on the changes in net position of the City’s governmental and business-type activities.
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2021 2020 2021 2020 2021 2020
Revenues:

Program Revenues:

Charges for services $5,015,265 $4,009,868 $8,512,229 $7,600,466 $13,527,494 $11,610,334 Operating grants and contributions 553,325 467,683 29,148 - 582,473 467,683 Capital grants and contributions 707,085 955,619 - - 707,085 955,619 General Revenues:

Property taxes 7,496,882 6,993,953 - - 7,496,882 6,993,953 Sales and other taxes 5,799,852 6,679,239 - - 5,799,852 6,679,239 Intergovernmental/unrestricted 79,645 120,701 - - 79,645 120,701 Investment Income 229,973 387,953 59,028 112,833 289,001 500,786 Other / transfers 1,067,830 945,369 (18,176) 77,893 1,049,654 1,023,262 Total revenues 20,949,857 20,560,385 8,582,229 7,791,192 29,532,086 28,351,577 Expenses:

General government 7,048,840 9,079,633 - - 7,048,840 9,079,633 Public safety 7,699,253 7,955,624 - - 7,014,779 7,955,624 Public works 2,514,209 2,656,048 - - 2,514,209 2,656,048 Parks and recreation 773,562 1,162,397 - - 773,562 1,162,397 Interest and long-term debt 485,322 630,051 - - 485,322 630,051 Enterprise operations - - 7,932,882 8,296,172 7,932,882 8,296,172 Total expenses 18,521,186 21,483,753 7,932,882 8,296,172 25,769,594 29,779,925 Change in net position 2,428,671 (923,368) 649,347 (504,980) 3,078,018 (1,428,348) Net position - beginning of year, as restated* 72,256,413 73,179,781 22,232,834 22,737,814 94,489,247 95,917,595 Net position - end of year $74,685,084 $72,256,413 $22,882,181 $22,232,834 $97,567,265 $94,489,247 TABLE 2
Governmental Activities Business-type Activities Total

CITY OF DEL MAR'S CHANGES IN NET POSITION
Governmental Activities:

The City’s net position from governmental activities increased by $2.43 million (3.36%) in the current fiscal year, accounting for 78.90% of the total $3.08 million increase in the City’s total net position. Total revenues from governmental activities of $20.95 million increased by $0.39 million (1.89%), compared to the prior fiscal year. The cost of all govermental activities in FY 20-21 was $18.52 million, a decrease of $2.96 million (13.79%), over the prior fiscal year. Due to the unknown economic impact the pandemic was continuing to have on the City’s financials, only essential services were provided in FY 20-21, which resulted in the reduction of expenses.

As shown in the Statement of Activities, governmental activities were financed in part by taxpayers at $5.02 million, which was generated by service revenues received from the performance of these activities, and had an increase of $1.0 million (25.07%) compared to FY 19-20. Increase in this category were largly related to the increase in Building and Planning fees, parking meter revenue, and parking violation fees. Another $0.55 million was received 42 March 7, 2022 Item 07
from other government agencies and other organizations that subsidized certain programs with operating grants and contributions. In addition, another $0.71 million in revenues came from capital grants and contributions, which decreased by $0.25 million (26.01%), compared to the prior fiscal year.

Overall, the City’s governmental program revenues amounted to $6.28 million, an increase of $0.84 million (15.51%) compared to the prior fiscal year. General revenues of $14.67 million decreased by $0.45 million (3.0%), in comparison to the prior fiscal year. The City had an increase in property taxes of $0.50 million (7.19%); a decrease of sales and other taxes of $0.88 million (13.17%); and a decrease in other revenue of $0.04 million (2.60%) compared to the prior fiscal year.

In comparison to the prior fiscal year, the key elements contributing to the $2.96 million decrease in expenditures from governmental activities are as follows:
 A total decrease of $2.03 million in general government costs largely due to the the decrease of special projects; reduction in expenditures to only essential services; and the required 2.5% furlough salary and benefit reduction to all full time employees and layoffs made during FY 20-21.
 A decrease of $0.39 million in parks and recreation due to the closure of the Powerhouse Community Center for special events and rentals.  A decrease of $0.26 million in public safety costs largely due to the elimination of the park ranger program in FY 20-21.

Business-type Activities:

The City’s business-type activities increased in net position by $0.65 million (2.90%), for the fiscal year ended June 30, 2021. Business-type activities’ total revenue increased by $0.79 million (10.10%), during the current fiscal year to a total of $8.58 million in revenues. In comparison to the prior fiscal year, charges for services increased by $0.91 million (12.0%).

Business-type activity costs also decreased during the fiscal year by $0.36 million (4.38%), compared to the prior fiscal year. The increase in revenues and decrease in expenses, resulted in a change in net position of $0.65 million, from the prior fiscal year.

FINANCIAL ANALYSIS OF THE CITY’S FUNDS
As noted earlier, the City of Del Mar 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 spending resources. Such information is useful in assessing the City of Del Mar’s financing requirements. In particular, the unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.
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As of June 30, 2021, the City’s governmental funds reported a combined ending fund balance of $11.63 million, which is a $4.14 million (55.34%) increase, in comparison to the prior fiscal year of $7.48 million. The $11.63 million governmental fund balance is composed of $0.005 million in non-spendable; $0.70 million in restricted; $0.15 million in committed; $3.13 million in assigned (not available for new spending); and $7.60 million in unassigned funds (available for new spending).

Table 3 below shows the governmental fund balances for the fiscal years ended June 30, 2021 and June 30, 2020.

Non-Major
Capital Governmental
FISCAL YEAR 2020-2021 General Improvement Funds Totals
Total revenues $19,708,653 $144,140 $741,505 $20,594,298 Total expenditures 13,621,075 1,205,816 1,644,033 16,470,924 Excess (deficiency) of
revenues over expenditures 6,087,578 (1,061,676) (902,528) 4,123,374 Total other financing
sources (uses) (1,874,123) 1,091,981 800,318 18,176.00
Net change in fund balance 4,213,455 30,305 (102,210) 4,141,550 Fund balance - beginning 6,257,960 278,065 947,717 7,483,742 Fund balance - ended $10,471,415 $308,370 $845,507 $11,625,292 FISCAL YEAR 2019-2020
Total revenues $18,862,045 $656,854 $1,119,379 $20,638,278 Total expenditures 17,539,523 2,681,516 2,493,123 22,714,162 Excess (deficiency) of
revenues over expenditures 1,322,522 (2,024,662) (1,373,744) (2,075,884) Total other financing
sources (uses) (3,295,251) 1,982,234 1,235,124 (77,893) Net change in fund balance (1,972,729) (42,428) (138,620) (2,153,777) Fund balance - beginning 8,230,689 320,493 1,086,337 9,637,519 Fund balance - ended $6,257,960 $278,065 $947,717 $7,483,742 TABLE 3

CITY OF DEL MAR
SUMMARY STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCES

GOVERNMENTAL FUNDS
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General Fund:

Total governmental funds includes the General Fund, the chief operating fund of the City, which has a fund balance of $10.47 million as of June 30, 2021. This is a increase of $4.21 million (67.33%), in comparison to the prior fiscal year. This increase is due to the net of an increase in total revenues of $0.85 million (4.49%); a decrease in operating costs of $3.92 million (22.34%); and a decrease in other financing uses of $1.42 million (43.13%).

Increased revenues of $0.85 million (4.49%) were largely related to the net of an increase to parking meter and violation revenue of $0.83 million, an increase to property tax of $0.40 million, and an increase to planning and building fees of $0.36 million, offset by a decrease in transient occupancy tax of $0.51 million and a decrease in sales and use tax of $0.32 million.

Total expenditures decreased by $3.92 million (22.34%) when compared to FY 19-20. The decrease was largely related to a decrease in Measure Q project activity (which is accounted for in the General Fund) of $2.8 million, and large operating expenditure reductions such as legal fees of $0.60 million, when compared to FY 19-20 expenditures in the same categories.

The ending fund balance is composed of $0.05 million of non-spendable funds for prepaid items; $2.83 million in assigned funds for specific expenditures; and $7.59 million in unassigned funding, which is available for spending at the City’s discretion.

Additional detailed information regarding combined fund balance reserves is included in Note 7 to the Basic Financial Statements.

Major Funds:

As of June 30, 2021, the Capital Improvement Program’s fund balance of $0.31 million, increased by $0.03 million (10.90%) from the prior fiscal year. Total revenues decreased by $0.51 million (78.06%) largely due to a reduction of federal grant reimbursements for the Camino del Mar Bridge project. Total expenditures decreased by $1.48 million (55.03%) largely due to projects that were put on hold and deferred as a result of the pandemic.

Non-major Funds:

The fund balances for other governmental funds or non-major governmental funds decreased $0.10 million (10.70%) from the FY 19-20 balance of $0.95 million to $0.85 million at the end of the current fiscal year. The other non-major funds are composed of special revenue funds including Road Maintenance and Rehabilitation Account (RMRA); Gas Tax, Open Space; Supplemental Law Enforcement; Regional Communications System; Grants; Housing; AB 939; Regional Transportation; and Transnet II. The fund balance of $0.83 million is restricted or committed for specific purposes.

Proprietary Funds:

The City’s proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. 45 March 7, 2022 Item 07
Enterprise Funds: The total net position in the enterprise funds, increased over the prior fiscal year by $0.65 million (2.9%). The City’s Water Fund increased by $0.51 million (4.18%), the Wastewater Fund increased by $0.03 million (0.304%), and the Clean Water Fund increased by $0.11 million (122.37%).

At the end of FY 20-21, the Internal Service fund reported a net position of $0.39 million, which is a $0.05 million (15.56%) decrease from last fiscal year, due to higher claims activity, offset by lower charges for services.

General Fund Budgetary Highlights
The City adopts annual appropriated operating budgets for its governmental funds and reports the results of operations on a budget comparison basis.

In preparing its budgets, the City attempts to estimate its revenues using realistic, but conservative, methods so as to budget its expenditure appropriations and activities in a prudent manner. As a result, the City Council adopts budget adjustments during the course of the fiscal year to reflect both changed priorities and availability of revenues to allow for expansion of existing programs. Due to the unknown impact the pandemic was going to continue to have in the upcoming year, the City updated the FY 20-21 budget in June 2020, which was based on the concept that large revenue losses would continue in the first half of the year and gradually recover in the second half of the year. Projections were based with the idea that a revenue would have a full recovery in FY 23-24.

The City experienced the largest revenue loss in transient occupancy tax and sales tax between the months of November 2020 and February 2021. However, the months that followed had a stronger than anticipated recovery, leading to a favorable budget variance of $1.86 million when comparing actual excess revenues over expenditures. This positive budget variance primarily reflects revenue realization greater than estimates of $0.93 million due to higher tax revenues of $0.88 million; higher licenses, fees and permits of $0.01 million; higher charges for services of $0.15 million; higher fines and forfeitures of $0.13 million; and higher other revenue of $0.19 million; which was offset by lower intergovernmental revenue of $0.48 million and lower use of money and property of $0.05 million.

The actual expenditures were less than the fiscal year’s final appropriation by $0.93 million primarily due to less than anticipated expenditures in general government of $0.19 million; lower expenditures in public safety of $0.12 million; and lower capital outlay of $0.64 million, which was offset by an increase in public works expenditures of $0.02 million.

Lower capital outlay than projected was largely due to the appropriation for the Undergrounding project which was approved at the end of FY 20-21, but would be largely expensed in FY 21-22.
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CAPITAL ASSET and DEBT ADMINISTRATION
Capital Assets:

The City of Del Mar’s investment in capital assets for its governmental and business-type activities as of June 30, 2021, amounts to $115.91 million, net of accumulated depreciation.

Amounts invested in capital assets include land; buildings and improvements; machinery and equipment; bridges; roadway networks; water lines; and sewer and storm drainage systems.

The total decrease in the City’s capital assets, net of depreciation, for the current fiscal year was $3.04 million (2.56%), compared to the prior fiscal year. Of the decrease, $2.10 million is related to governmental activities and $0.93 million in business-type activities. For capital assets by category, refer to Table 4.

Due to the anticipated financial impact of the pandemic on the City’s financials, the City Council deferred most capital projects that were not contractually obligated or required to be completed for public safety reasons. The largest capital asset additions for the year included costs related to the Utility Undergrounding project of $0.19 million; Camino del Mar Bridge project of $0.17 million and Riverpath Del Mar project of $0.08 million. However, the total depreciation on current assets for the year was $2.72 million, which resulted in a net decrease of $2.10 million in governmental activities capital assets.

The same practice of spending was implemented for business-type activities, which resulted in a decrease of $0.93 million (3.0%) during the fiscal year. The largest capital asset expenditures for the year included the purchase of a sewer rodder and a grinder totaling $0.11 million and water and wastewater infrastructure improvements of $0.03 million. Similar to governmental activities, the total depreciation of the year of $1.07 million exceeded the addition in assets, resulting in a net decrease of $0.93 million in business-type activities capital assets.

Additional information on the City of Del Mar’s capital assets is located in Note 3 of the financial statements in this report.
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2021 2020 2021 2020 2021 2020
Non-depreciable assets:

Land $18,289,250 $18,289,250 $1,365,688 $1,365,688 $19,654,938 $19,654,938 Water Rights - - 32,987 $20,000
Construction in progress 3,419,262 3,024,228 - - 3,419,262 3,024,228 Total non-depreciable assets 21,708,512 21,313,478 1,398,675 1,385,688 23,074,200 22,679,166 Capital assets, being depreciated:

Buildings/structures and improvements 22,727,884 23,445,919 5,387,113 5,599,654 28,114,997 29,045,573 Machinery and equipment 875,938 1,019,016 591,508 601,537 1,467,446 1,620,553 Streets 16,898,060 17,488,316 - - 16,898,060 17,488,316 Traffic signals 45,795 47,397 - - 45,795 47,397
Roadway network 2,921,141 3,022,950 - - 2,921,141 3,022,950 Bridge 22,476,728 23,339,663 - - 22,476,728 23,339,663
Storm drainage system 2,166,817 2,247,184 20,000.00 - 2,186,817 2,247,184 Water line system - - 7,920,336 8,204,790 7,920,336 8,204,790 Sewer line system - - 10,800,079 11,253,281 10,800,079 11,253,281 Total depreciable assets, net
of accumulated depreciation 68,112,363 70,610,445 24,719,036 25,659,262 92,831,399 96,269,707 Total capital assets $89,820,875 $91,923,923 $26,117,711 $27,044,950 $115,905,599 $118,948,873 TABLE 4

CITY OF DEL MAR'S CAPITAL ASSETS
(Net of depreciation)
Governmental Activities Business-Type Activities Total

Debt Service Administration:

A complete detail of outstanding debt is shown in Note 6 of the financial statements in this report. As of June 30, 2021, the City had total long-term debt outstanding of $24.94 million made up of loan payable; note payable; compensated absences; and claims payable as shown in Table 5.

For governmental activities, long-term debt accounts for $18.57 million (74.46%) of the City’s total long-term debt, as of June 30, 2021. Total long-term debt is comprised of a loan through IBank, for the City Hall/Town Hall project of $14.72 million; loan through the San Diego Association of Governments (SANDAG) of $2.65 million; loan with the County of San Diego of $0.23 million; compensated absences of $0.57 million; and claims payable of $0.39 million. All long-term debt in governmental activities is secured solely by specified revenue sources. 48 March 7, 2022 Item 07
2021 2020 2021 2020 2021 2020
Note payable 17,602,114 $ 18,084,967 $ 6,233,225 $ 6,626,345 $ 23,835,339 $ 24,711,312 $ Compensated absences 574,433 489,587 136,214 120,353 710,647 609,940 Claims payable 392,079 779,706 - - 392,079 779,706
Capital leases - - - - - -
$ 19,354,260 18,568,626 $ 6,369,439 $ 6,746,698 $ 24,938,065 $ 26,100,958 $ TABLE 5

CITY OF DEL MAR'S OUTSTANDING DEBT
Total

Governmental Activities Business-type Activities
For business-type activities, long-term debt accounts for $6.37 million (25.54%), of the City’s total long-term debt, as of June 30, 2021. The Wastewater fund has a note payable with a remaining balance of $3.44 million with the State of California for the replacement of the 21st Street Pump Station, and a note with IBank with an outstanding balance of $2.79 million.

Compensated absences in business-type activities accounts for $0.14 million of the total business-type long-term debt. All long-term debt in business-type activities is pledged solely by operating revenues.

The City did not incur any new long-term debt during FY 20-21. The City’s long-term debt decreased by $1.16 million (4.46%) compared to the prior fiscal year, largely due to required annual note principal payments of $0.87 million (3.54%), and claims payable decreased by $0.39 million (49.72%). In addition, there was a slight increase of $0.10 million (16.51%) in compensated absences.

Economic Factors and Next Year’s Budget
Local governments throughout the State of California must continuously find new ways to survive economically in order to meet their obligation of serving their communities. Cities that rely on tourism, like Del Mar, have experienced the biggest financial losses during the COVID19 pandemic. As has been past practice, the City continues to take a conservative approach to budgeting revenues and expenditures. With some indicators of economic recovery over the next two fiscal years, the adopted FY 21-22 and FY 22-23 budget includes a gradual return to providing City services at pre-COVID levels and a restart of several important City capital and special projects. Management continues to take an active role in monitoring the budget during the fiscal year in order to address any economic changes that may occur resulting in necessary changes to projected revenues and/or appropriated expenditures.

In light of the potential impact that the COVID-19 pandemic may continue to have on revenues, management looked at the following key economic factors while preparing the adopted budget for Fiscal Year (FY) 2021-2022:
49 March 7, 2022 Item 07
Revenues:

The City’s projected revenues for FY 21-22 total $28.80 million, which is $0.61 million (2.17%) higher than final FY 20-21 projected revenues of $28.19 million.

The City’s three primary sources of revenues are property taxes, Transient Occupancy Tax (TOT), and Sales and Use Tax (sales tax), which make up approximately 68% percent of General Fund revenues. As we saw with COVID, TOT and sales tax revenues are vulnerable to substantial fluctuation as they are largely based on tourism. As such, a more conservative methodology is used when forecasting future revenues in these areas. These two sources of revenue were the hardest hit during the pandemic, and the two-year budget reflects a gradual recovery to these revenues with the anticipation to return to pre-COVID levels in FY 2023-2024.

Expenditures:

The City’s FY 20-21 Operating and Capital Budget has expenditures of $28.35 million, which is $0.33 million (1.17%) higher than the prior fiscal year’s final adopted budget of $28.02 million.

Expenditures are based on anticipated operating needs, capital and special projects, and City Council driven goals and priorities. City staff approached the two-year budget process with the goal of maintaining current funding and service levels, and requested increases were limited to areas that are needed to maintain services levels, increase operational efficiencies, or those that are required in order to remain compliant with state and federal laws. Due to the COVID-19 pandemic, expenditures in the previous year were reduced to “essential items” only and the two-year budget has maintained similar levels of service, with some items, including tree trimming and landscaping, gradually being increased over the two-year budget period to preCOVID levels.

The FY 21-22 budget is comprised of the General Fund for $13.72 million (48.39%); Measure Q Fund of $0.08 million (0.26%); other governmental funds of $1.99 million (7.03%); Capital Project Funds of $2.46 million (8.66%); special projects of $0.62 million (2.19%); and the Workers’ Compensation Fund of $0.26 million (0.91%). The business-type funds account for $9.23 million (32.56%).

The City’s Adopted Fiscal Years 2021-2022 and 2022-2023 Operating and Capital Budget is a reflection of the City’s commitment to the residents of Del Mar. A copy of the budget can be obtained by contacting the City’s Finance Department or can be found online at:
https://www.delmar.ca.us/132/Budget-Financial-Reports.

Request for Information
This financial report is designed to provide a general overview of the City of Del Mar’s finances for all those who may be interested. Questions concerning any of the information provided in this report or requests for additional financial information, should be addressed to the City of Del Mar, Finance Department, 1050 Camino Del Mar, Del Mar, California 92014, (858) 755-9354.

Additional information about the City’s finances can be found on the City’s website at:
https://www.delmar.ca.us/132/Budget-Financial-Reports.
50 March 7, 2022 Item 07
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51 March 7, 2022 Item 07

GOVERNMENT-WIDE FINANCIAL STATEMENTS
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53 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

STATEMENT OF NET POSITION
JUNE 30, 2021
See accompanying Notes to Financial Statements.
(11)
Governmental Business-Type
Activities Activities Total
ASSETS
Current Assets:

Cash and Investments 9,440,951 $ 4,848,396 $ 14,289,347 $ Receivables:

Accounts, Net 4,171,032 1,408,777 5,579,809
Taxes 1,324,329 - 1,324,329
Accrued Interest 7,961 4,583 12,544
Inventory 73,034 - 73,034
Due from Other Agencies 220,207 - 220,207
Prepaid Expenses 50,492 24,056 74,548
Restricted Cash and Investments - 563,791 563,791
Total Current Assets 15,214,972 6,922,637 22,137,609
Noncurrent Assets:

Capital Assets:

Not Being Depreciated 21,708,512 1,398,675 23,107,187
Being Depreciated (Net of Accumulated Depreciation) 68,112,363 24,719,036 92,831,399 Total Capital Assets 89,820,875 26,117,711 115,938,586
Total Noncurrent Assets 89,820,875 26,117,711 115,938,586 Total Assets 105,035,847 33,040,348 138,076,195

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amounts from Pension Plans 2,181,463 592,551 2,774,014

LIABILITIES
Current Liabilities:

Accounts Payable and Accrued Liabilities 1,862,099 1,101,245 2,963,344 Deposits Payable 638,676 65,522 704,198
Due to Other Agencies 6,236 - 6,236
Accrued Interest Payable 196,729 84,728 281,457
Long-Term Debt, Due Within One Year 925,774 437,435 1,363,209 Total Current Liabilities 3,629,514 1,688,930 5,318,444 Noncurrent Liabilities:

Long-Term Debt, Due in More Than One Year 17,642,852 5,932,004 23,574,856 Net Pension Liability 3,080,129 11,057,297 14,137,426
Total Noncurrent Liabilities 28,700,149 9,012,133 37,712,282 Total Liabilities 32,329,663 10,701,063 43,030,726

DEFERRED INFLOWS OF RESOURCES
Deferred Amounts from Pension Plans 202,563 49,655 252,218

NET POSITION
Net Investment in Capital Assets 72,058,048 20,447,077 92,505,125 Restricted for:

Public Works 437,792 - 437,792
Public Safety - 197,377 197,377
Community Development 314,751 - 314,751
Unrestricted 1,677,116 2,435,104 4,112,220
Total Net Position 74,685,084 $ 22,882,181 $ 97,567,265 $ 54 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(12)
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities:

General Government 7,048,840 $ 2,232,648 $ 219,734 $ - $ Public Safety 7,699,253 2,670,239 153,068 -
Public Works 2,514,209 2,584 180,523 707,085
Parks and Recreation 773,562 109,794 - -
Interest on Long-Term Debt 485,322 - - -
Total Governmental Activities 18,521,186 5,015,265 553,325 707,085 Business-Type Activities:

Water 3,779,243 4,262,987 - -
Wastewater 3,638,587 3,657,548 - -
Cleanwater 515,052 591,694 29,148 -
Total Business-Type Activities 7,932,882 8,512,229 29,148 - Total 26,454,068 $ 13,527,494 $ 582,473 $ 707,085 $

GENERAL REVENUES
Taxes:

Property Tax
Transient Occupancy Tax
Franchise Tax
Business License Tax
Intergovernmental - Unrestricted Shared Sales
Intergovernmental - Unrestricted Other
Investment Income
Other

TRANSFERS
Total General Revenues and Transfers

CHANGE IN NET POSITION
Net Position - Beginning of Year

NET POSITION - END OF YEAR
Program Revenues
and Use Tax
55 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(13)
Governmental Business-Type
Activities Activities Total
$ - (4,596,458) $ (4,596,458) $
- (4,875,946) (4,875,946)
- (1,624,017) (1,624,017)
- (663,768) (663,768)
- (485,322) (485,322)
- (12,245,511) (12,245,511)
483,744 - 483,744
18,961 - 18,961
105,790 - 105,790
608,495 - 608,495
608,495 (12,245,511) (11,637,016)
- 7,496,882 7,496,882
- 1,792,090 1,792,090
- 324,805 324,805
- 229,534 229,534
- 3,453,423 3,453,423
- 79,645 79,645
59,028 229,973 289,001
- 1,049,654 1,049,654
(18,176) 18,176 -
40,852 14,674,182 14,715,034
649,347 2,428,671 3,078,018
22,232,834 72,256,413 94,489,247
$ 22,882,181 74,685,084 $ 97,567,265 $
Net Revenue (Expense) and
Change in Net Position
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57 March 7, 2022 Item 07

FUND FINANCIAL STATEMENTS
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59 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2021
See accompanying Notes to Financial Statements.
(17)
Capital
Projects Fund Nonmajor
Capital Governmental
General Fund Improvement Funds Total
ASSETS
Cash and Investments 7,358,656 $ 366,184 $ 971,453 $ 8,696,293 $ Receivables:

Taxes 1,324,329 - - 1,324,329
Accrued Interest 6,621 - 712 7,333
Accounts, Net 4,007,697 54,634 108,701 4,171,032
Due from Other Agencies 128,144 30,778 61,285 220,207
Due from Other Funds 70,695 - - 70,695
Prepaid Items 50,415 - 77 50,492
Total Assets 12,946,557 $ 451,596 $ 1,142,228 $ 14,540,381 $

LIABILITIES
Accounts Payable and Accrued Liabilities 1,715,064 $ 57,814 $ 89,221 $ 1,862,099 $ Deposits Payable 603,156 - 35,520 638,676
Due to Other Agencies 6,236 - - 6,236
Due to Other Funds - - 70,695 70,695
Total Liabilities 2,324,456 57,814 195,436 2,577,706

DEFERRED INFLOW OF RESOURCES
Unavailable Revenues 150,686 85,412 101,285 337,383
Total Deferred Inflows of Resources 150,686 85,412 101,285 337,383

FUND BALANCES
Nonspendable 50,415 - 77 50,492
Restricted - - 698,223 698,223
Committed - - 147,207 147,207
Assigned 2,825,035 308,370 - 3,133,405
Unassigned 7,595,965 - - 7,595,965
Total Fund Balances 10,471,415 308,370 845,507 11,625,292 Total Liabilities, Deferred Inflow of
Resources and Fund Balances 12,946,557 $ 451,596 $ 1,142,228 $ 14,540,381 $ 60 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
See accompanying Notes to Financial Statements.
(18)
Fund Balances of Governmental Funds $ 11,625,292
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets, net of $18,694,200 of accumulated depreciation, used in governmental activities are not current financial resources and, therefore, are not included in the funds. 89,820,875 Interest expenditures are recognized when due, and therefore, interest payable is not recorded in the governmental funds. (196,729)
Long-term liabilities applicable to governmental activities are not due and payable in the current period, and accordingly, are not reported as fund liabilities.

Note Payable (17,602,114)
Claims Payable (39,459)
Compensated Absences (574,433)
Revenues are deferred in the fund statements due to lack of availability. In the statement of activities, the amounts are recognized as revenue. 337,383 An internal service fund is used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service fund is included in the governmental activities in the statement of net position. 392,666 Pension related debt applicable to the City's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities.

Deferred outflows of resources and deferred inflows of resources related to pensions are only reported in the statement of net position as the changes in these amounts effect only the government-wide statements for governmental activities:

Deferred Outflows of Resources 2,181,463
Deferred Inflows of Resources (202,563)
Pension Liability (11,057,297)
Net Position of Governmental Activities $ 74,685,084
61 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(19)
Capital
Projects Fund Nonmajor
Capital Governmental
General Fund Improvement Funds Total

REVENUES
Taxes 13,255,773 $ - $ 235,572 $ 13,491,345 $
Licenses, Fees, and Permits 1,220,534 - 209,526 1,430,060 Intergovernmental 247,463 144,140 244,735 636,338
Charges for Services 2,563,903 - - 2,563,903
Fines and Forfeitures 1,049,002 - - 1,049,002
Use of Money and Property 219,220 - 10,753 229,973
Contributions 214,996 - - 214,996
Other 937,762 - 40,919 978,681
Total Revenues 19,708,653 144,140 741,505 20,594,298

EXPENDITURES
Current:

General Government 6,029,236 45,621 175,510 6,250,367
Public Safety 7,059,446 - 65,110 7,124,556
Public Works 330,225 - 433,893 764,118
Parks and Recreation - - 773,085 773,085
Capital Outlay 202,168 298,818 84,348 585,334
Debt Service:

Principal - 378,452 104,401 482,853
Interest - 482,925 7,686 490,611
Total Expenditures 13,621,075 1,205,816 1,644,033 16,470,924

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,061,676) 6,087,578 (902,528) 4,123,374

OTHER FINANCING SOURCES (USES)
Transfers In 101,850 1,091,981 934,133 2,127,964
Transfers Out (1,975,973) - (133,815) (2,109,788)
Total Other Financing Sources (Uses) 1,091,981 (1,874,123) 800,318 18,176 NET CHANGE IN FUND BALANCES 30,305 4,213,455 (102,210) 4,141,550 Fund Balances - Beginning of Year 6,257,960 278,065 947,717 7,483,742 FUND BALANCES - END OF YEAR $ 308,370 10,471,415 $ 845,507 $ 11,625,292 $ 62 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES

IN FUND BALANCES OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(20)
Net Change in Fund Balances of Governmental Funds $ 4,141,550 Amount reported for governmental activities in the statement of activities that are different because:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over its estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation in the current period.

Capital Outlay Expense 612,465
Depreciation Expense (2,715,513)
Repayment of debt service principal is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the statement of net position. 482,853 Revenues deferred in the fund due to lack of availability are recognized in the statement of activities soon enough after year end to be considered available. The availability criteria does not apply to the government-wide statements and therefore, the revenue is not deferred. This amount represents revenue recorded in government-wide statements that be recorded in the fund statements in fiscal year 2021-2022. 337,383 Some expenses reported in the statement of activities do not require the use of current available resources and, therefore, are not reported as expenditures in the governmental funds:

Change in Compensated Absences (84,846)
Change in Claims Payable 391,581
Accrued interest on debt service is recorded as expense in the government-wide statements. Interest expense is not accrued in the fund statements but recorded when paid. This is the net change in accrued interest for the current period. 5,289 Pension expense reported in the governmental funds includes the annual required contributions. In the statement of activities, pension expense includes the change in the net pension liability, and related change in pension amounts for deferred outflows of resources and deferred inflows of resources. (695,809) An internal service fund is used by management to charge the cost of workers' compensation activities to individual funds. The net revenues (expenses) of the internal service fund are reported with governmental activities. (46,282) Change in Net Position of Governmental Activities 2,428,671 $ 63 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
JUNE 30, 2021
See accompanying Notes to Financial Statements.
(21)
Governmental
Activities -
Nonmajor: Internal
Water Wastewater Clean Water Total Service Fund
ASSETS
Current Assets:

Cash and Investments 2,709,204 $ 2,008,080 $ 131,112 $ 4,848,396 $ 744,658 $ Receivables:

Accounts 747,536 558,954 102,287 1,408,777 -
Interest 2,294 2,178 111 4,583 628
Prepaid Items 12,028 12,028 - 24,056 -
Inventory 11,245 61,789 - 73,034 -
Restricted Cash and Investments - 563,791 - 563,791 -
Total Current Assets 3,532,851 3,156,276 233,510 6,922,637 745,286 Noncurrent Assets:

Capital Assets:

Land and Water Rights 782,025 583,663 - 1,365,688 -
Construction in Progress 16,619 16,368 - 32,987 -
Water and Wastewater System 14,952,463 18,916,739 20,000 33,889,202 - Buildings and Improvements 4,039,761 4,293,450 - 8,333,211 - Machinery and Equipment 304,548 1,769,774 38,325 2,112,647 - Less: Accumulated Depreciation (8,983,889) (10,610,733) (21,402) (19,616,024) - Total Capital Assets (Net of
Accumulated Depreciation) 14,969,261 11,111,527 36,923 26,117,711 - Total Noncurrent Assets 14,969,261 11,111,527 36,923 26,117,711 - Total Assets 14,644,378 18,125,537 270,433 33,040,348 745,286

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amounts from Pension Plans 295,494 297,057 - 592,551 -

LIABILITIES
Current Liabilities:

Accounts Payable 385,156 656,201 59,888 1,101,245 -
Customer Deposits 65,522 - - 65,522 -
Claims Payable - - - - 282,096
Accrued Interest Payable 54 84,674 - 84,728 -
Current Portion of Long-Term Liabilities 14,648 418,867 3,920 437,435 - Total Current Liabilities 465,380 1,159,742 63,808 1,688,930 282,096 Long-Term Liabilities:

Claims Payable - - - - 70,524
Compensated Absences 43,945 46,455 11,761 102,161 -
Notes Payable - 5,829,843 - 5,829,843 -
Net Pension Liability 1,544,128 1,536,001 - 3,080,129 - Total Noncurrent Liabilities 1,579,946 7,420,426 11,761 9,012,133 70,524 Total Liabilities 2,045,326 8,580,168 75,569 10,701,063 352,620

DEFERRED INFLOWS OF RESOURCES
Deferred Amounts from Pension Plans 24,762 24,893 - 49,655 -

NET POSITION
Net Investment in Capital Assets 11,110,927 9,299,227 36,923 20,447,077 - Unrestricted 1,758,857 518,306 157,941 2,435,104 392,666 Total Net Position 12,869,784 $ 9,817,533 $ 194,864 $ 22,882,181 $ 392,666 $ Business-Type Activities - Enterprise Funds
64 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(22)
Governmental
Activities -
Nonmajor: Internal
Water Wastewater Clean Water Total Service Fund

OPERATING REVENUES
Water Sales 4,103,527 $ - $ - $ 4,103,527 $ - $
Clean Water Services - - 589,891 589,891 -
Sewer Service - 3,423,843 - 3,423,843 -
Charges for Services - - - - 231,771
Customer Penalties 9,556 8,320 1,803 19,679 -
Other 149,904 225,385 29,148 404,437 -
Total Operating Revenues 4,262,987 3,657,548 620,842 8,541,377 231,771

OPERATING EXPENSES
Source of Supply 1,607,704 - - 1,607,704 -
Water Treatment 346,427 - - 346,427 -
Sewer Collection - 216,719 - 216,719 -
Maintenance and Operation - - 9,326 9,326 -
General and Administrative 1,443,550 2,606,186 503,367 4,553,103 286,439 Depreciation 381,562 689,831 2,359 1,073,752 -
Total Operating Expenses 3,779,243 3,512,736 515,052 7,807,031 286,439 OPERATING INCOME (LOSS) 144,812 483,744 105,790 734,346 (54,668)

NONOPERATING REVENUES (EXPENSES)
Interest Income 32,961 24,622 1,445 59,028 8,386
Interest Expense - (125,851) - (125,851) -
Total Nonoperating Revenues
(Expenses) 32,961 (101,229) 1,445 (66,823) 8,386
INCOME (LOSS) BEFORE TRANSFERS 43,583 516,705 107,235 667,523 (46,282)

TRANSFERS
Transfers Out (9,088) (9,088) - (18,176) -
Total Transfers (9,088) (9,088) - (18,176) -
CHANGES IN NET POSITION 34,495 507,617 107,235 649,347 (46,282) Net Position - Beginning of Year 12,362,167 9,783,038 87,629 22,232,834 438,948 NET POSITION - END OF YEAR $ 9,817,533 12,869,784 $ 194,864 $ 22,882,181 $ 392,666 $ Business-Type Activities -
Enterprise Funds
65 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(23)
Governmental
Activities -
Nonmajor: Internal
Water Wastewater Clean Water Total Service Fund

CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Water, Sewer, and Clean Water Customers 4,055,217 $ 3,355,650 $ 585,427 $ 7,996,294 $ - $ Cash Received from Other Operating Receipts 149,904 225,385 29,148 404,437 231,771 Cash Payments for Water Purchases, Distribution, and Treatment (1,954,131) - - (1,954,131) - Cash Payments for Sewer Collection and Maintenance - (216,719) - (216,719) - Cash Payments for Services and Supplies (906,335) (2,362,474) (519,540) (3,788,349) (147,240) Cash Payment to Employees for Services (500,413) (543,713) 3,890 (1,040,236) (135,245) Net Cash Provided (Used) by Operating Activities 844,242 458,129 98,925 1,401,296 (50,714)

CASH FLOWS FROM CAPITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (16,620) (129,892) - (146,512) - Interest Payments on Long-Term Debt (755) (132,158) - (132,913) - Principal Payments on Long-Term Debt - (393,120) - (393,120) - Net Cash Used by Capital and
Related Financing Activities (17,375) (655,170) - (672,545) -

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 34,081 27,695 1,334 63,110 9,195
Net Cash Provided by Investing Activities 34,081 27,695 1,334 63,110 9,195

NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (178,434) 851,860 100,259 773,685 (41,519) Cash and Cash Equivalents - Beginning of Year 2,750,305 1,857,344 30,853 4,502,153 786,177 CASH AND CASH EQUIVALENTS - END OF YEAR $ 2,571,871 2,709,204 $ 131,112 $ 5,412,187 $ 744,658 $

CASH AND CASH EQUIVALENTS
Cash and Cash Equivalents 2,709,204 $ 2,008,080 $ 131,112 $ 4,848,396 $ 744,658 $ Restricted - Cash and Cash Equivalents - 563,791 - 563,791 - $ 2,709,204 $ 2,571,871 $ 131,112 $ 5,412,187 $ 744,658

RECONCILIATION OF OPERATING INCOME (LOSS) TO

NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating Income (Loss) 483,744 $ 144,812 $ 105,790 $ 734,346 $ (54,668) $ Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation 381,562 689,831 2,359 1,073,752 -
Changes in Operating Assets, Deferred Outflows of
Resources, Liabilities, and Deferred Inflows of Resources:
(Increase) Decrease in Accounts Receivable (76,513) (52,314) (6,267) (135,094) - (Increase) Decrease in Prepaid Expense (12,028) (11,908) - (23,936) - (Increase) Decrease in Inventory (934) (1,639) - (2,573) - (Increase) Decrease in Deferred Outflows of Resources 30,241 30,081 - 60,322 - Increase (Decrease) in Claims Payable - - - - 3,954
Increase (Decrease) in Accounts Payable (390,070) (53,821) (6,847) (450,738) - Increase (Decrease) in Customer Deposits - (3,913) - (3,913) - Increase (Decrease) in Net Pension Liability 126,843 126,178 - 253,021 - Increase (Decrease) in Compensated Absences 5,981 5,990 3,890 15,861 - Increase (Decrease) in Deferred Inflows of Resources (60,034) (59,718) - (119,752) - Total Adjustments 360,498 313,317 (6,865) 666,950 3,954 Net Cash Provided (Used) by Operating Activities 844,242 $ 458,129 $ 98,925 $ 1,401,296 $ $ (50,714)

NONCASH INVESTING, CAPITAL, AND FINANCING

RELATED ACTIVITY
Noncash Changes in Fair Value of Investments 7,196 $ 616 $ - $ 7,812 $ 752 $ Business-Type Activities - Enterprise Funds
66 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

FIDUCIARY FUNDS

STATEMENT OF FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(24)
Custodial
Fund
ASSETS
Account Receivable $ 179
Restricted Assets:

Cash and Investments 208,601
Total Assets 208,780

NET POSITION
Restricted for Bond Holders 208,780
Total Net Position $ 208,780
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CITY OF DEL MAR, CALIFORNIA

FIDUCIARY FUNDS

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Financial Statements.
(25)
Custodial
Fund

ADDITIONS
Interest Income $ 2,214
Special Assessments or Special Taxes Collected from Property Owners 47,093 Contribution from City 37,130
Total Additions 86,437

DEDUCTIONS
Payment for Special Assessment or Special Tax Debt 55,638 Total Deductions 55,638
CHANGE IN NET POSITION 30,799
Total Net Position - Beginning of Year, As Restated 177,981 TOTAL NET POSITION - END OF YEAR $ 208,780
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CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(26)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the City of Del Mar, California (the City) have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The significant City accounting policies are described below.

A. Reporting Entity
The City of Del Mar, California was incorporated in 1959 under the general laws of the state of California and enjoys all the rights and privileges pertaining to “Chartered” cities.

The City operates under an elected Council/City Manager form of government. The City provides basic government services to its citizens, including general government, public safety, public works, and parks and recreation.

As required by U.S. GAAP, these financial statements present the City of Del Mar and its blended component unit, an entity for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization’s governing body and the City is able to impose its will on that organization or there is a potential for that organization to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable for an organization if that organization is fiscally dependent (i.e. it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationships with the City are such that their exclusion would cause the City’s financial statements to be misleading or incomplete. A brief description of the City’s component unit is as follows:

The Del Mar Public Facilities Corporation (the Corporation) was formed on August 16, 1993, under the Nonprofit Public Benefit Corporation Law of the state of California to provide financial assistance to the City of Del Mar by acquiring, leasing, constructing or financing public sewer and/or water facilities and improvements. The financial activities of the Corporation have been aggregated and merged (termed “blending”) with those of the City in the accompanying financial statements, since the City Council serves as the governing board for the Corporation. The City does not produce separate financial statements for the Corporation.

B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e. the statement of net position and the statement of activities) report information on all the nonfiduciary activities of the primary government and its blended component unit. For the most part, the effect of interfund 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 user fees and charges for support.
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CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(27)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Government-Wide and Fund Financial Statements (Continued) The statement of activities demonstrates the degree to which the direct expenses for a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included as program revenues are reported as general revenues.

The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures or expenses, as appropriate.

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.

Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

C. Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources.

The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary funds. Under the economic resources measurement focus, all assets, deferred outflows of resources, liabilities and deferred inflows of resources (whether current or noncurrent) associated with their activity are included on their statements of net position. Operating statements present increases (revenues) and decreases (expenses) in total net position.

Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met.
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CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(28)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus and Basis of Accounting (Continued) The City’s fiduciary fund financial statements report custodial funds. Custodial funds are used to account for situations where the government’s role is purely custodial. Custodial funds are reported on the accrual basis of accounting and have no measurement focus.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, only current assets, deferred outflows of resources, current liabilities and deferred inflows of resources are generally included on their balance sheets. The reported fund balance is considered to be 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 fund balance. 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 due to governmental funds are reported on their balance sheets in spite of their spending measurement focus.

Under the modified accrual basis of accounting, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service payments (principal and interest), compensatory time and claims and judgments are recorded only when payment is due.

Property taxes, sales and use tax, transient occupancy tax (TOT), franchise taxes, vehicle license fees, highway user’s tax, interest associated with the current period, and some grants are all susceptible to accrual and have been recognized as revenue in the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government.

The City reports the following major governmental funds:
 The General Fund is the primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.
 The Capital Improvement Capital Projects Fund is used to account for the financial resources used for the acquisition or construction of major property, equipment, or facilities (other than those financed by the proprietary funds). 71 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(29)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus and Basis of Accounting (Continued) The City reports the following major proprietary funds:
 The Water Fund is used to account for the operation, maintenance, and capital facility financing of the City’s water system.
 The Wastewater Fund is used to account for the operation, maintenance, and capital facility financing of the City’s wastewater system.

Additionally, the City reports the following fund types:
 Special Revenue Funds are used to account for revenues derived from specific sources which are usually required by law or administrative regulation to be accounted for in a separate fund.
 Capital Project Funds are used to account for the financial resources to be used for the acquisition or construction of major capital facilities.  The Nonmajor Enterprise Fund accounts for the mandated costs of the City’s National Pollution Discharge Eliminations System (NPDES) permit.  The Internal Service Fund is used to account for the workers’ compensation services provided to other departments of the City.
 Fiduciary Funds are used to account for assets held by the City in a custodial capacity for individuals, private organizations, or other governments. The current City’s fiduciary funds include: Stratford and Luneta Undergrounding Assessment District 1989-01; Seawall Refinance Assessment District 1999-01; Ocean View/Pines Assessment District 2005-01; North Hills Undergrounding Assessment District 2007-01, and the Sunset Undergrounding Assessment District 2007-02.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services in connection with the funds principal ongoing operations. The principal operating revenues of the City’s enterprise funds and internal service fund are charges for sales and services. Operating expenses for enterprise funds include the cost of sales and services, general and administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
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CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(30)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. New Accounting Pronouncements
In fiscal year ended June 30, 2021, the City adopted the following accounting standard.

GASB Statement No. 84, Fiduciary Activities became effective for fiscal years beginning after December 15, 2019. The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The City has implemented this Statement. See Note 16 for detail on impact to the City.

E. Investments
Investments are reported in the accompanying financial statements at fair value which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Changes in fair value that occur during a fiscal year are recognized as investment income reported for the fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments. The City pools investments of all funds, except assets held by fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds on a quarterly basis, based on each fund’s average cash and investment balance.

F. Cash and Cash Equivalents
For purposes of the statement of cash flows, cash and cash equivalents have been defined as demand deposits and highly liquid investments purchased with an original maturity of 90 days or less.

G. Receivables and Payables
Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year is referred “due to/from other funds” (short-term interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.”
All accounts, taxes, and service receivables are shown net of an allowance for uncollectible accounts. The City’s fiscal year-end falls in the middle of a billing cycle for water, sewer, trash, and recycling revenue. In order to accrue the amount of the yearend receivables the City estimates the amount of unbilled receivables based on that portion of the billing cycle that has elapsed as of the fiscal year-end. 73 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(31)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) H. Capital Assets
Capital assets, which include land, buildings, buildings and improvements, machinery, equipment and infrastructure are depreciated (except for land) and are reported in the applicable governmental or business-type activities columns in the government-wide financial statements.

Capital assets are defined by the City as assets with an initial, individual cost of $5,000 and an estimated useful life greater than one year. Donated capital assets are recorded at acquisition value at the date of donation.

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.

Depreciation is charged to operations using the straight-line method based on the estimated useful life of an asset. Land and construction in progress are not depreciated.

Water System 40 to 50 Years
Wastewater System 40 Years
Structures 33 Years
Meters and Hydrants 25 Years
Machinery and Equipment 5 to 15 Years
Infrastructure 33 Years
I. Compensated Absences
Vacation pay is payable to employees at the time used or upon termination of employment. In the statement of net position, compensated absences are recorded as a liability. In the statement of activities, the cost of vacation is recorded when earned for both governmental and business-type activities. The City expects 25% of the compensated absence balance to be paid within the next 12 months and has accordingly recorded this portion as a current liability. The remaining portion is recorded as a noncurrent liability. For the enterprise funds, compensated absences, once exercised, are paid out of the same fund as they were originally accrued. For governmental activities, the General Fund is used primarily to pay the liability.

J. Inventory and Prepaids
The enterprise fund inventories are valued at average cost. The inventory consists of meters, pipes and other parts required providing water and wastewater services to customers. The City uses the consumption method which means that the inventory is expensed as the item is used.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. 74 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(32)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Restricted Assets
Restricted assets consist of cash and investments, and accounts receivable held in a fiduciary capacity for several assessment districts.

L. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position reports 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 and will not be recognized as an outflow of resources (expense) until that time.

The City has the following items that qualify for reporting in this category:
 Deferred outflow related to pensions equal to employer contributions made after the measurement date of the net pension liability.
 Deferred outflow related to pensions for differences between expected and actual experience. These amounts are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans.
 Deferred outflow related to pensions resulting from the net difference in projected and actual earnings on investments of the pension plans’ fiduciary net position.

These amounts are amortized over five years.

In addition to liabilities, the statement of net position and governmental funds balance sheet reports 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 and will not be recognized as an inflow of resources (revenue) until that time.

The City has the following items that qualify for reporting in this category:
 Deferred inflow from unavailable revenues, which is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from one source, which is grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available and eligibility requirements are met.
 Deferred inflows related to pensions for changes in assumptions, and changes in proportion and differences between the employer’s contributions and the employer’s proportionate share of contributions. These amounts are only recorded in the Statements of Net Position and are amortized over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the plans. 75 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(33)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Property Taxes
Under California law, property taxes are assessed and collected by the County of San Diego up to 1% of assessed value, plus other increases approved by the voters. The County bills and collects the taxes and remits them to the City in installments. The City of Del Mar accrues these taxes as a receivable and revenue as of the levy date.

Lien Date January 1
Levy Date June 30
Due Dates November 1 and February 1
Collection Dates December 10 and April 10
N. Long-Term Obligations
In the government-wide financial statements and the proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund statement of net position. Bond premiums and discounts are amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed when incurred.

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

O. 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. Small dollar claims and judgments are recorded as expenditures when paid. Depending on the nature of the claims, they may be paid out of a number of funds. General claims are paid from the General Fund, workers’ compensation claims are paid from the internal service fund, and claims specific to an enterprise fund are paid out of the respective enterprise fund (Water, Wastewater, or Clean Water).

P. Net Position and Fund Equity
The governmental and business-type activities in the government-wide financial statements and proprietary funds financial statements utilize a net position presentation.

Net position is classified in the following categories:

Net Investment in Capital Assets – this category of net position consists of capital assets net of accumulated depreciation and reduced by outstanding debt and capital related payables that are attributed to the acquisition, construction, or improvement of the assets.
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CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Net Position and Fund Equity (Continued)
Restricted Net Position – this category of net position is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.

Unrestricted Net Position – all net position that does not meet the definition of “net investment in capital assets” or “restricted net position.” Sometimes the City 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 City’s practice to consider restricted – net position to have been depleted before unrestricted – net position is applied.

Fund balances are reported in the fund statements in the following classifications:

Nonspendable Fund Balance – this includes amounts that cannot be spent because they are either not spendable in form or legally or contractually required to be maintained intact.

Restricted Fund Balance – this includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers, or through enabling legislation. If the Council action limiting the use of funds is included in the same action that created the funding source, then it is restricted.

Committed Fund Balance – this includes amounts that can be used only for the specific purposes determined by a formal action of the Council. It includes Council action that can only be overturned by new legislation requiring the same type of voting consensus that created the original action. Therefore, if the Council action limiting the use of the funds is separate from the action that created the funding source, then it is committed, not restricted. The City considers a resolution to constitute a formal action of City Council for the purposes of establishing committed fund balance.

Assigned Fund Balance – this includes amounts that are designated or expressed by the Council, but does not require a formal action like a resolution or ordinance. The Council may delegate the ability of an employee or committee to assign uses of specific funds, for specific purposes. Such delegation of authority has been granted to the City Manager by resolution of the City Council.

Unassigned Fund Balance – this classification includes the residual balance for the government’s general fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned.
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CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(35)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. Net Position and Fund Equity (Continued)
It is the City’s policy that restricted resources will be applied first, followed by (in order of application) committed, assigned, and unassigned resources, in the absence of a formal policy adopted by the Council.

Q. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (the Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The general fund, water enterprise fund and wastewater enterprise funds typically have been used in prior years to liquidate pension liabilities.

R. Use of Estimates
The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates and assumptions.

NOTE 2 CASH AND INVESTMENTS
Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments 14,289,347 $
Restricted Cash and Investments 563,791
Statement of Fiduciary Assets and Liabilities:

Restricted Cash and Investments 208,601
Total Cash and Investments 15,061,739 $
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CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(36)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Cash and investments as of June 30, 2021 consist of the following:

Cash and Deposits:

Petty Cash on Hand 900 $
Demand Deposits 1,027,489
Total Cash and Deposits 1,028,389
Investments:

Federal Agency Securities 198,525
State Investment Pool 7,961,359
Investment in County Pool 2,786,789
Negotiable Certificates of Deposit 3,086,677
Total Investments 14,033,350
Total Cash and Investments 15,061,739 $
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code and the City’s investment policy. The table also identifies certain provisions of the California Government Code (or the City’s investment policy, if more restrictive) that address interest rate risk and concentration of credit risk. The limits expressed below apply at the time of purchase of the investment (rather than at year-end).

This table does not address investments of debt proceeds held by bond trustee 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.

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity* of Portfolio* in One Issuer* U.S. Treasury Securities 5 years None None
U.S. Agency Securities 5 years None None
Commercial Paper 270 days 25% 5%
Negotiable Certificates of Deposit None None $250,000
Repurchase Agreements 1 year None None
Medium-Term Corporate Notes 5 years 30% None
Mutual Funds N/A 20% None
Supranationals 5 years 15% 5%
San Diego County Pooled
Investment Funds N/A 30% None
Local Agency Investment Fund (LAIF) N/A $75 million None * Excluding amounts held by bond trustees that are not subject to California Government Code restrictions
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. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. 79 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(37)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Disclosures Relating to Interest Rate Risk (Continued)
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 is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity.
12 Months 13 to 24 25 to 60
Investment Type or Less Months Months Total
Federal Agency Securities - $ - $ 198,525 $ 198,525 $
State Investment Pool 7,961,359 - - 7,961,359
Investment in County Pool 2,786,789 - - 2,786,789
Negotiable Certificates of Deposit 705,390 764,763 1,616,524 3,086,677 Total 11,453,538 $ 764,763 $ 1,815,049 $ 14,033,350 $
Remaining Maturity (in Months)
Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City held no investments, which were highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above).

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

Minimum
Legal Not
Investment Type Fair Value Rating AAA AA+ Rated
Federal Agency Securities 198,525 $ - $ 198,525 $ - $
State Investment Pool 7,961,359 N/A - - 7,961,359
Investment in County Pool 2,786,789 N/A 2,786,789 - -
Negotiable Certificates
of Deposit 3,086,677 N/A - - 3,086,677
Total 14,033,350 $ 2,786,789 $ 198,525 $ 11,048,036 $
Rating as of Year-End
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. There are no investments in any one issuer other than external investment pools that represent 5% or more of the City’s investments.
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CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(38)
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 a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party in the event of the failure of the counterparty (e.g., broker-dealer).

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 the 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 pledged 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. At June 30, 2021, the City deposits (bank balances) were either insured by the Federal Deposit Insurance Corporation or collateralized as described above.

Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the state of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s prorated share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

Investment in San Diego County Pool
The City is a voluntary participant in the San Diego County Investment Pool (the Pool). The Pool is not registered with the Securities and Exchange Commission (SEC) as an investment company and does not have any binding guarantees for share values. An oversight committee monitors the management of the Pool.

Fair Value Measurement
The City categorizes its fair value measurement within the fair value hierarchy established by U.S. GAAP. The hierarchy is based on the valuation inputs used to measure the fair value of the assets. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are quoted prices of similar assets in active markets, and Level 3 inputs are significant unobservable inputs.
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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(39)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurement (Continued)
The City has the following recurring fair value measurements as of June 30, 2021:

Level 1 Level 2 Level 3 Total
Negotiable Certificates of Deposit - $ 3,086,677 $ - $ 3,086,677 $ Federal Agency Securities - 198,525 - 198,525
Total Leveled Investments - $ 3,285,202 $ - $ 3,285,202 State Investment Pool* 7,961,359
Investment in County Pool* 2,786,789
Total Investment Portfolio 14,033,350 $
* Not subject to fair value measurement hierarchy.

NOTE 3 CAPITAL ASSETS
A summary of changes in the governmental activities capital assets for the year ended June 30, 2021 is as follows:

Balance at Balance at
July 1, 2020 Additions Deletions June 30, 2021
Governmental Activities
Capital Assets,
Not Being Depreciated:

Land 18,289,250 $ - $ - $ 18,289,250 $
Construction in Progress 3,024,228 504,494 (109,460) 3,419,262 Total Capital Assets, Not
Being Depreciated 21,313,478 504,494 (109,460) 21,708,512 Capital Assets, Being Depreciated:

Buildings and Improvements 28,720,004 137,030 (32,592) 28,824,442 Machinery and Equipment 2,402,141 49,992 (34,979) 2,417,154 Infrastructure 55,534,558 30,409 - 55,564,967
Total Capital Assets,
Being Depreciated 86,656,703 217,431 (67,571) 86,806,563 Less Accumulated Depreciation for:

Buildings and Improvements (5,274,085) (855,065) 32,592 (6,096,558) Machinery and Equipment (1,383,125) (193,070) 34,979 (1,541,216) Infrastructure (9,389,048) (1,667,378) - (11,056,426)
Total Accumulated
Depreciation (16,046,258) (2,715,513) 67,571 (18,694,200) Total Capital Assets,
Being Depreciated, Net 70,610,445 (2,498,082) - 68,112,363 Total Governmental Activities
Capital Assets, Net 91,923,923 $ (1,993,588) $ (109,460) $ 89,820,875 $ 82 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(40)
NOTE 3 CAPITAL ASSETS (CONTINUED)
Depreciation expense was charged to functions for the fiscal year ended June 30, 2021 as follows:

Governmental Activities:

General Government 659,106 $
Public Safety 93,351
Public Works 1,703,985
Parks and Recreation 34,153
Community Services 224,918
Total Depreciation Expense 2,715,513 $
A summary of changes in the business-type activities capital assets for the year ended June 30, 2021 is as follows:

Balance at Balance at
July 1, 2020 Additions Deletions June 30, 2021
Business-Type Activities
Capital Assets,
Not Being Depreciated:

Land 1,365,688 $ - $ - $ 1,365,688 $
Water Rights 20,000 32,987 (20,000) 32,987
Total Capital Assets, Not
Being Depreciated 1,385,688 32,987 (20,000) 1,398,675
Capital Assets, Being Depreciated:

Buildings 4,080,948 - - 4,080,948
Improvements 4,252,263 - - 4,252,263
Machinery and Equipment 1,999,121 113,526 - 2,112,647
Water System 14,952,463 - - 14,952,463
Storm Drains - 20,000 20,000
Wastewater System 18,916,739 - - 18,916,739
Total Capital Assets,
Being Depreciated 44,201,534 133,526 - 44,335,060
Less Accumulated Depreciation for:

Buildings (1,006,545) (121,967) - (1,128,512)
Improvements (1,727,012) (90,574) - (1,817,586)
Machinery and Equipment (1,397,584) (123,555) - (1,521,139) Water System (6,747,672) (284,455) - (7,032,127)
Wastewater System (7,663,459) (453,201) - (8,116,660)
Total Accumulated
Depreciation (18,542,272) (1,073,752) - (19,616,024)
Total Capital Assets,
Being Depreciated, Net 25,659,262 (940,226) - 24,719,036 Total Business-Type Activities
Capital Assets, Net 27,044,950 $ (907,239) $ (20,000) $ 26,117,711 $ 83 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(41)
NOTE 3 CAPITAL ASSETS (CONTINUED)
Depreciation expense was charged to functions for the fiscal year ended June 30, 2021 as follows:

Business-Type Activities:

Water 381,562 $
Wastewater 689,831
Clean Water 2,359
Total Depreciation Expense 1,073,752 $
NOTE 4 INTERFUND RECEIVABLES AND PAYABLES
At June 30, 2021, interfund receivables and payables are as follows:

Due From Due To
General Fund 70,695 $ - $
Nonmajor Governmental Funds:

Supplemental Law Enforcement Special Revenue Fund - 62,411 RMRA Special Revenue Fund - 8,284
Total 70,695 $ 70,695 $
The above balances are primarily due to the reclassification of negative cash balances in the city-wide cash pool.

NOTE 5 INTERFUND TRANSFERS
Interfund transfers for the fiscal year ended June 30, 2021 were as follows:

Nonmajor
General Governmental Water Wastewater
Transfers In Fund Funds Fund Fund Total
General Fund (B) - $ 101,850 $ - $ - $ 101,850 $
Capital Improvement Capital
Projects Fund (A) 1,091,981 - - - 1,091,981
Nonmajor Governmental
Funds (B) 883,992 31,965 9,088 9,088 934,133
Total 1,975,973 $ 133,815 $ 9,088 $ 9,088 $ 2,127,964 $ Transfers Out
Purpose of Interfund Transfers
Transfers were needed:

A. To cover costs related to roadway and sidewalk improvements.

B. To fund current and future capital improvement projects. 84 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(42)
NOTE 6 CHANGES IN LONG-TERM LIABILITIES
A summary of changes in long-term liabilities for the fiscal year ended June 30, 2021 is as follows:

Balance Balance Due Within
July 1, 2020 Additions Deletions June 30, 2021 One Year Governmental Activities:

Direct Borrowings:

Note Payable 2,715,000 $ - $ (61,250) $ 2,653,750 $ 65,000 $ Note Payable - City Hall 15,094,480 - (378,788) 14,715,692 391,061 Note Payable - Regional
Communications 275,487 - (42,815) 232,672 44,009
Other Long-Term Liabilities:

Compensated Absences 489,587 468,025 (383,179) 574,433 143,608 Claims Payable 779,706 3,408,663 (3,796,290) 392,079 282,096 Total Governmental
Activities 19,354,260 $ 3,876,688 $ (4,662,322) $ 18,568,626 $ 925,774 $ Business-Type Activities:

Direct Borrowings:

Notes Payable 6,626,345 $ - $ (393,120) $ 6,233,225 $ 403,383 $ Other Long-Term Liabilities:

Compensated Absences 120,353 119,728 (103,867) 136,214 34,052 Total Business-Type
Activities 6,746,698 $ 119,728 $ (496,987) $ 6,369,439 $ 437,435 $ Governmental Long-Term Debt
Note Payable
Del Mar borrowed $3,000,000 for its Sidewalk, Street, and Drainage Project. Part of the proceeds were used to refinance a previous loan from San Diego Association of Governments (SANDAG) through SANDAG’s debt financing program. Future principal and interest will be paid annually using the City’s annual TransNet revenue allocations received from SANDAG. The interest rate will be 3.85% per year.

The future debt service requirements for this note are as follows:

Fiscal Year Ending Principal Interest Total
2022 65,000 $ 68,897 $ 133,897 $
2023 70,000 65,173 135,173
2024 70,000 51,506 121,506
2025 75,000 58,369 133,369
2026 80,000 57,202 137,202
2027 - 2031 456,250 260,269 716,519
2032 - 2036 587,500 199,054 786,554
2037 - 2041 748,750 117,880 866,630
2042 - 2044 501,250 38,710 539,960
Total 2,653,750 $ 917,060 $ 3,570,810 $
85 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(43)
NOTE 6 CHANGES IN LONG-TERM LIABILITIES (CONTINUED)
Governmental Long-Term Debt (Continued)
Note Payable – City Hall
Del Mar borrowed $16,161,000 for its City Hall Project. Loan proceeds are requested as funds are expensed. Annual payments began on February 1, 2017, are to be paid through August 2045 at an interest rate of 3.24% per annum.

The future debt service requirements for this note are as follows:

Fiscal Year Ending Principal Interest Total
2022 391,061 $ 470,456 $ 861,517 $
2023 403,731 457,578 861,309
2024 416,812 444,284 861,096
2025 430,317 430,561 860,878
2026 444,259 416,393 860,652
2027 - 2031 2,446,763 1,852,846 4,299,609
2032 - 2036 2,869,669 1,423,089 4,292,758
2037 - 2041 3,365,673 918,751 4,284,424
2042 - 2046 3,947,407 327,593 4,275,000
Total 14,715,692 $ 6,741,551 $ 21,457,243 $
Note Payable – Regional Communication System
The City entered into a finance agreement in August 2016 with the County of San Diego for $435,436 plus accrued interest for its portion of the regional communication system upgrade. Annual payments began on June 30, 2017, are to be paid through June 2026 at an interest rate of 2.79% per annum.

The future debt service requirements for this note are as follows:

Fiscal Year Ending Principal Interest Total
2022 44,009 $ 6,492 $ 50,501 $
2023 45,237 5,264 50,501
2024 46,499 4,002 50,501
2025 47,797 2,704 50,501
2026 49,130 1,371 50,501
Total 232,672 $ 19,833 $ 252,505 $
86 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(44)
NOTE 6 CHANGES IN LONG-TERM LIABILITIES (CONTINUED)
Business-Type Long-Term Debt
Note Payable – 21st Street Sewer Pump Station
The City entered into a finance agreement in February 2010 with the state Water Resources Control Board and was approved for financial assistance in the amount of $5,000,000 plus accrued interest provided through the Clean Water State Revolving Fund. These funds were used for the replacement of the 21st Street Sewer Pump Station. This note is secured by net revenues and is secured on parity with existing 1993 Sewer System Improvements Certificates of Participation. Annual payments of $344,017, which began on August 1, 2013, are to be paid through August 2032 at an interest rate of 2.9% per annum.

The future debt service requirements for this note are as follows:

Fiscal Year Ending Principal Interest Total
2022 244,116 $ 99,901 $ 344,017 $
2023 251,195 92,822 344,017
2024 258,480 85,537 344,017
2025 265,975 78,042 344,017
2026 273,689 70,328 344,017
2027 - 2031 1,492,203 227,882 1,720,085
2032 - 2033 659,221 28,813 688,034
Total 3,444,879 $ 683,325 $ 4,128,204 $
This note payable is secured by the net revenues generated by the Wastewater Enterprise Fund. Net revenue is defined as all revenues received less operations and maintenance costs (excluding depreciation) for the fiscal year. Net revenues for the fiscal year ended June 30, 2021 totaled $859,265 and total debt service (principal and interest) paid during the year was $307,196 for the note payable.

Note Payable – San Elijo Joint Powers Authority (SEJPA) Pipeline The City entered into a finance agreement in June 2015 with the California Infrastructure and Economic Development Bank (IBank) and was approved for financial assistance in the amount of $3,535,354 plus accrued interest provided through the Infrastructure State Revolving Fund Program. These funds were used for the replacement of a sewage pipeline. This note is secured by net revenues which are required to be 1.2 times the maximum annual debt service payable which in fiscal year 2020-2021 is $218,082. The City’s net revenue in fiscal year 2020-2011 is $859,265 which exceeds the requirement.

Annual payments began on August 1, 2016, are to be paid through August 2035 at an interest rate of 2.17% per annum.
87 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(45)
NOTE 6 CHANGES IN LONG-TERM LIABILITIES (CONTINUED)
Business-Type Long-Term Debt (Continued)
Note Payable – San Elijo Joint Powers Authority (SEJPA) Pipeline (Continued) The future debt service requirements for this note are as follows:

Fiscal Year Ending Principal Interest Total
2022 159,267 $ 58,779 $ 218,046 $
2023 162,723 55,285 218,008
2024 166,254 51,716 217,970
2025 169,862 48,069 217,931
2026 173,548 44,343 217,891
2027 - 2031 925,889 162,934 1,088,823
2032 - 2036 1,030,803 56,881 1,087,684
Total 2,788,346 $ 478,007 $ 3,266,353 $
NOTE 7 FUND BALANCES
Capital
Improvement Nonmajor
General Capital Governmental
Fund Projects Fund Funds Total
Nonspendable:

Prepaid Items 50,415 $ - $ 77 $ 50,492 $
Total Nonspendable 50,415 - 77 50,492
Restricted for:

Public Safety - - 136,092 136,092
Public Works - - 219,261 219,261
Street Projects - - 93,119 93,119
Low-Income Housing - - 249,751 249,751
Total Restricted - - 698,223 698,223
Committed to:

Parks and Community Center - - 147,207 147,207
Total Committed - - 147,207 147,207
Assigned to:

Compensated Absences 100,000 - - 100,000
Equipment Replacement 724,850 - - 724,850
Public Television 10,993 - - 10,993
Economic Contingency 200,000 - - 200,000
Self-Insurance 500,000 - - 500,000
Pension Reserve 1,220,200 - - 1,220,200
Special Projects 68,992 - - 68,992
Capital Projects - 308,370 - 308,370
Total Assigned 2,825,035 308,370 - 3,133,405
Unassigned 7,595,965 - - 7,595,965 ` Total Fund Balances 10,471,415 $ 308,370 $ 845,507 $ 11,625,292 $ 88 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(46)
NOTE 7 FUND BALANCES (CONTINUED)
Nonspendable for Prepaid Items represents amounts that cannot be spent because they are not spendable in form.

Restricted for Public Safety accounts for grant funds received for public safety programs, equipment, or supplies, and represents funds to maintain the City’s portion of the San Diego County and Imperial County Regional Communications System.

Restricted for Public Works represents funds received through the City’s solid waste franchise agreement to implement the countywide integrated waste management plan and program.

Restricted for Street Projects are designated for the specific purposes as restricted by law or administrative action.

Restricted for Low-Income Housing represents funds to provide for low and moderate income housing as required by the state Housing Law. These funds are collected as a fee from developers when building permits are issued.

Committed to Parks and Community Center represents funds received from facility use permits of the community center designated for park and beach maintenance, and Powerhouse Community Center maintenance and operations.

Assigned to Compensated Absences are funds set aside for unpaid vacation time due to employees.

Assigned to Equipment Replacement are funds set aside to provide for the replacement of capital equipment currently owned.

Assigned to Public Television represents funds received through the City’s local cable company agreement to provide television production equipment, airtime on local cable system, and to televise public information and meetings.

Assigned to Economic Contingency represents funds set aside to cover any unanticipated costs that arise during the COVID-19 pandemic.

Assigned to Self-Insurance are funds established for payment of the deductible portions of claims not covered by insurance policies.

Assigned to Pension Reserve are funds set aside to pay for unfunded accrued pension liability or current pension obligations.

Assigned to Special Projects are funds set aside from a voter’s approved 1% sales tax measure that are set aside for community reinvestment/infrastructure types of projects Assigned to Capital Projects are funds used for the acquisition and construction of major capital facilities.
89 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(47)
NOTE 8 RETIREMENT PLANS
A. General Information about the Pension Plans
Plan Descriptions
All qualified permanent and probationary employees are eligible to participate in the City’s separate Safety (lifeguard and fire) and Miscellaneous (all other) Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS).

Benefit provisions under the Plans are established by state statute and City resolution.

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

Benefits Provided
CalPERS provides service 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 fulltime employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least 5 years of services.

PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least five years of service. All members are eligible for nonduty disability benefits after five 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. Safety members can receive a special death benefit if the member dies while actively employed and the death is job related. Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost of living adjustments for each plan are applied as specified by the California Public Employees’ Retirement Law.

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

Classic Members Classic Members New Members
Prior to On or After On or After
January 1, 2013 January 1, 2013 January 1, 2013
Benefit Formula - Active 3% @ 60 2% @ 60 2% @ 62
Benefit Formula - Inactive 2% @ 55 N/A N/A
Benefit Vesting Schedule 5 years of service 5 years of service 5 years of service Benefit Payments monthly for life monthly for life monthly for life Retirement Age 50 - 60 50 - 63 52 - 67
Monthly Benefits, as a Percentage
of Eligible Compensation 2.0% to 3.0% 1.0% to 2.5% 1.0% to 2.5% Required Employee Contribution Rates 7.79% 6.92% 7.00%
Required Employer Contribution Rates:

Normal Cost Rate 15.045% 9.114% 7.794%
Payment of Unfunded Liability 508,647 $ 2,274 $ 1,909 $ Miscellaneous
90 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(48)
NOTE 8 RETIREMENT PLANS (CONTINUED)
A. General Information about the Pension Plans (Continued) Benefits Provided (Continued)
Prior to After Prior to After to
January 1, 2013 January 1, 2013 January 1, 2013 January 1, 2013 Benefit Formula 3% @ 50 2.7% @ 57 3% @ 50 2.7% @ 57
Benefit Vesting Schedule 5 years 5 years 5 years 5 years of service of service of service of service
Benefit Payments monthly for life monthly for life monthly for life monthly for life Retirement Age 50 57 50 50
Monthly Benefits, as a Percentage
of Eligible Compensation 3.00% 2.70% 3.00% 2.70%
Required Employee Contribution Rates 8.99% 13.00% 8.94% 13.00% Required Employer Contribution Rates:

Normal Cost Rate 22.437% 13.044% 18.152% 13.044%
Payment of Unfunded Liability 293,096 $ 1,247 $ 77,725 $ 505 $ Safety
Fire Lifeguard
Contributions
Section 20814(c) of the California Public Employees’ Retirement Law 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 City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. City 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 contributions requirements are classified as plan member contributions. The City made contributions to the Miscellaneous and Safety Plans during the fiscal year ended June 30, 2021 of $903,226 and $613,844, respectively.

B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2021, the City reported net pension liabilities for its proportionate shares of the net pension liability of all Plans as follows:

Proportionate
Share of
Net Pension
Liability
Miscellaneous 8,126,992 $
Safety 6,010,434
Total Net Pension Liability 14,137,426 $
91 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(49)
NOTE 8 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
The City’s net pension liability for each plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2020, and the total pension liability for each plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The City’s proportionate share 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 each plan as of the measurement date ended June 30, 2019 and 2020 was as follows:

Miscellaneous Safety
Proportion - June 30, 2019 0.18267 % 0.08753 %
Proportion - June 30, 2020 0.19267 0.09021
Change - Increase (Decrease) 0.01000 % 0.00268 %
For the year ended June 30, 2021, the City recognized pension expense of $2,406,470 ($1,414,029 – Miscellaneous Plan and $992,441 – Safety Plan). At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred Deferred Deferred
Outflows Inflows Outflows Inflows
of Resources of Resources of Resources of Resources
Pension Contributions Subsequent
to Measurement Date 903,226 $ - $ 613,844 $ - $
Differences Between Expected
and Actual Experience 418,809 - 466,078 -
Change in Assumptions - (57,965) - (20,021)
Change in Employer's Proportion
and Differences Between the
Employer's Contributions and the
Employer's Proportionate Share
of Contributions - (73,050) - (101,182)
Net Differences Between
Projected and Actual Earnings
on Plan Investments 241,425 - 130,632 -
Total 1,563,460 $ (131,015) $ 1,210,554 $ (121,203) $
Miscellaneous Safety
92 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(50)
NOTE 8 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
$1,517,070 ($903,226 – Miscellaneous Plan and $613,844 – Safety Plan) reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Year Ending June 30, Miscellaneous Safety
2022 44,849 $ 92,455 $
2023 197,767 180,568
2024 170,808 137,030
2025 115,795 65,454
2026 - -
Thereafter - -
Actuarial Assumptions
The total pension liability for the June 30, 2020 measurement period was determined by an actuarial valuation as of June 30, 2019, with update procedures used to roll forward the total pension liability to June 30, 2020. The total pension liability was based on the following assumptions:

Miscellaneous Safety
Valuation Date June 30, 2019 June 30, 2019
Measurement Date June 30, 2020 June 30, 2020
Actuarial Cost Method Entry-Age Normal Entry-Age Normal Cost Method Cost Method
Actuarial Assumptions:

Discount Rate 7.15% 7.15%
Inflation 2.50% 2.50%
Salary Increases (1) (1)
Mortality Rate Table (2) (2)
Post Retirement Benefit Increase (3) (3)
(1) Varies by entry age and service
(2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Preretirement and Post-retirement mortality rates includes 15 years of projected mortality improvement using 90% of Scale MP-2016 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 December 2017 that can be found on the CalPERS website. (3) The less of contract COLA or 2.50% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.50% thereafter.
93 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(51)
NOTE 8 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
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 short-term and long-term market return expectations, as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short term (first 10 years) and the long-term (11+ years) using a building block approach. Using the expected nominal returns for both short term and long term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short term and long term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses.

The expected real rates of return by asset class are as follows:

New Real Return Real Return
Strategic Years Years
Asset Class (a) Allocation 1 - 10 (b) 11+ (c)
Global Equity 50.00 % 4.80 % 5.98 %
Fixed Income 28.00 1.00 2.62
Inflation Assets - 0.77 1.81
Private Equity 8.00 6.30 7.23
Real Assets 13.00 3.75 4.93
Liquidity 1.00 - (0.92)
Total 100.00 %
(b) An expected inflation of 2.0% used for this period
(c) An expected inflation of 2.92% used for this period (a) In the CalPERS ACFR, Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments; Inflation Assets are included in both Global Equity Securities and Global Debt Securities
94 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(52)
NOTE 8 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.15% 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.

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

Current
1% Decrease Discount Rate 1% Increase
(6.15%) (7.15%) (8.15%)
City's Proportionate Share of the
Net Pension Liability 12,495,459 $ 8,126,992 $ 4,517,465 $ Miscellaneous
Current
1% Decrease Discount Rate 1% Increase
(6.15%) (7.15%) (8.15%)
City's Proportionate Share of the
Net Pension Liability 8,917,601 $ 6,010,435 $ 3,624,830 $ Safety
Pension Plans Fiduciary Net Position
Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

C. Payable to the Pension Plans
At June 30, 2021, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2021.
95 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(53)
NOTE 9 DEFERRED COMPENSATION
The City offers its employees a deferred compensation plan created in accordance with Internal Revenue Code (IRC) Section 457 whereby employees authorize the City to withhold funds from their salary to be invested in the plan’s investment options. The plan, organized as a trust for the exclusive benefit of the participants and available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. The assets of this plan are not the property of the City and are not subject to the claims of the City’s general creditors. As a result, the assets of this plan are not reported in the financial statements. The City contributed $38,099 to the plan during fiscal year 2020- 2021.

NOTE 10 GOVERNMENTAL MONEY PURCHASE PLAN
On November 15, 1999, the City adopted a money purchase pension plan. The plan was created in accordance with IRC Section 401(a). The plan is organized as a trust for the exclusive benefit of the participants and is available to the City’s management employees.

The plan allows the participants to defer a portion of their salary to future years. The City does not require participants to contribute a minimum percentage of participant earnings.

The participants have the option to determine a percentage of earnings to contribute into the plan.

Contributions are paid for by the employees. The plan allows the participants to become immediately fully vested in their accounts and has a normal retirement age of 60. The participants will not have access to funds until termination, retirement, or death. Plan assets are held by a trustee on behalf of City employees. The assets of this plan are not reported in the financial statements.

NOTE 11 LITIGATION AND COMMITMENTS
Litigation
The City is presently involved in other matters of litigation that have arisen in the normal course of the City’s business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to have a material adverse financial impact on the City. Additionally, City management believes that sufficient reserves are available to the City to cover any potential losses, should an unfavorable outcome materialize. See Note 13 for additional information regarding the City’s risk management and Note 7 for the amount of fund balance assigned to self-insurance.

Construction Contracts and Commitments
As of June 30, 2021, construction contracts totaled $48,395 of which $48,395 has been expended. City commitments for outstanding encumbrances (purchase orders and contracts for goods and services not yet delivered) by major governmental funds is $1,417,988 for capital improvements in the City and is shown as committed or restricted. 96 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(54)
NOTE 11 LITIGATION AND COMMITMENTS (CONTINUED)
Other
The City has a 25-year lease with the state of California’s 22nd District Agricultural Association for use of the City’s fire station that ends on June 30, 2025. The annual rent is payable every July 1st and is the greater of a) $40,000 multiplied by the percentage which the Consumer’s Price Index (CPI) for the preceding April increased compared to the base period in April 2000; or 5% annum. The annual rental increase may not exceed 10%. For fiscal year 2020-2021, the fire lease payment was $106,132.

NOTE 12 POSTEMPLOYMENT HEALTH CARE BENEFITS
The City has no obligation to provide postemployment health care benefits for retirees.

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), eligible employees may elect to pay for a continuation of insurance to provide healthcare benefits. Certain requirements are outlined by the federal government for this coverage. The premium plus a 2% administration fee is paid in full by the insured on or before the tenth day of the month for the actual month covered. This program is offered for a duration of 18 months after the termination date. There is no associated cost to the City under this program.

During fiscal year 2018-2019, the Del Mar Firefighters Association (DMFA) approved the creation of VantageCare Retirement Health Savings Program (RHS) through the International City/County Management Association Retirement Corporation (ICMA-RC). The RHS will provide tax-free assets to members of DMFA for a wide range of medical expenses. DMFA members will contribute 1% of earnings for firefighter and paramedic classifications and 3% of earnings for fire captain and engineer classifications. The City has no obligation to provide any assistance for costs associated with the plan.

NOTE 13 RISK MANAGEMENT
The City is a member of the California State Association of Counties-Excess Insurance Authority (CSAC-EIA) beginning July 2015. CSAC-EIA is a consortium of other agencies in California who have joined together to achieve savings on insurance premiums through volume purchasing and risk management consulting. Each member pays for its proportionate share of its individually contracted insurance coverage. The City does not own an equity interest in CSAC-EIA and separate financial statements are prepared for CSACEIA. Copies of CSAC-EIA’s annual financial report may be obtained by writing to 75 Iron Point Circle, Suite 200, Folsom, CA 95630.

General Liability
As a member of Public Risk Innovation, Solutions, and Management (PRISM), the City is self-insured for the first $100,000 of each occurrence. The difference between the City’s $100,000 self-insurance retention and $5,000,000 of pooled liability insurance for each occurrence is covered by PRISM, with an additional $45,000,000 of purchased liability for a total of $50,000,000. Specific coverage includes bodily injury, property damage, municipal errors and omissions and personal injury.
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CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(55)
NOTE 13 RISK MANAGEMENT (CONTINUED)
General Liability (Continued)
The City accounts for general liability as part of long-term debt in governmental activities.

Workers’ Compensation
The City uses a risk management self-insurance workers’ compensation fund (an internal service fund) to account for and finance its uninsured risk of loss. All funds of the City make payments based on actuarial estimates of the amounts needed to pay prior and current year claims and to establish appropriate reserves. The City is self-insured for the first $125,000 for each occurrence and has excess insurance up to $50,000,000.

General liability and workers’ compensation claims were as follows for June 30, 2021:

General Workers'
Liability Compensation
Unpaid Claims - June 30, 2019 - $ 279,767 $
Incurred Claims (Including IBNR) 725,351 190,608
Claims Payments (294,311) (121,709)
Unpaid Claims - June 30, 2020 431,040 348,666
Incurred Claims (Including IBNR) 3,273,419 135,245
Claims Payments (3,665,000) (131,291)
Unpaid Claims - June 30, 2021 39,459 $ 352,620 $
The general liability claims are recorded in the general fund accounts payable and accrued liabilities. The workers’ compensation claims are recorded in the internal service fund.

Settled claims have not exceeded any of the City’s coverage amounts in any of the last three years and there were no reductions in the City’s insurance coverage during the fiscal year ended June 30, 2021.

Other Insurance Policies
The City maintains insurance coverage in the following specific areas: real and personal property damage with loss of revenue and increased expenses, auto-physical damage, machinery damage, faithful performance bonds, cyber-attacks, and pollution.

NOTE 14 ASSESSMENT DISTRICT BOND ISSUES
The City has issued Special Assessment Bonds as allowed under the state of California Special Improvement Act. The City has no obligation beyond the balances in the designated Agency fund for any delinquent assessment district bond payments. The City acts solely as an agent for those paying assessments and the bondholders of the obligations outstanding.

If delinquencies occur beyond the amounts held in the reserve funds created from bond proceeds, the City has no duty to pay the delinquency out of any available funds of the City.

Neither the faith, credit, nor taxing power of the City is pledged to the payment of the bonds.

Therefore, such bonds are not an appropriate liability of the City and are not included in the accompanying financial statements.
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CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
(56)
NOTE 14 ASSESSMENT DISTRICT BOND ISSUES (CONTINUED)
At June 30, 2021, the outstanding special assessment district bond is as follows:
 The Ocean View/Pines Assessment District No. 2005-0l Bonds of $932,201 were issued October 1, 2005, to finance the removal of overhead utilities in the Ocean View Pines neighborhood area. The bonds outstanding at June 30, 2021 were $240,000.

NOTE 15 EXPENDITURES EXCEEDING APPROPRIATIONS
The nonmajor Regional Communications System and AB 939 Special Revenue Funds exceeded budgets by $1,293 and $28,074, respectively. These funds have adequate resources to cover the budget overage.

NOTE 16 RESTATEMENT
The City adopted the provisions of the Governmental Accounting Standard Board (GASB) Statement No. 84, Fiduciary Activities, which became effective during the year ended June 30, 2021. The intention of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported.

The implementation of the Statement required the City to record prior period adjustments.

As a result, the beginning net positions of Custodial Funds were restated and increased by $177,981.
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REQUIRED SUPPLEMENTARY INFORMATION
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CITY OF DEL MAR, CALIFORNIA

MISCELLANEOUS PLAN

SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (60)
June 30, 2015 June 30, 2016 June 30, 2017
Measurement Period June 30, 2014 June 30, 2015 June 30, 2016 Plan's Proportion of the Net Pension Liability 0.15975 % 0.16365 % 0.17212 % Plan's Proportionate Share of the Net Pension Liability 3,948,228 $ 4,489,625 $ 5,979,285 $ Plan's Covered Payroll 2,825,926 $ 2,850,725 $ 3,083,838 $ Plan's Proportionate Share of the Net Pension
Liability as a Percentage of Covered Payroll 139.71 % 157.49 % 193.89 % Plan's Proportionate Share of the
Fiduciary Net Position as a Percentage
of the Plan's Total Pension Liability 83.03 % 81.70 % 74.06 %

NOTES TO SCHEDULE
Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2019:

There were no changes in assumptions.

From fiscal year June 30, 2019 to June 30, 2020:

There were no changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021:

There were no changes in assumptions.
* Fiscal year 2015 was the first year of implementation and therefore only seven years are shown.

GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.50% used for the June 30, 2014 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2015 measurement date is without reduction of pension plan administrative expense. 103 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

MISCELLANEOUS PLAN

SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY (CONTINUED) LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (61)
June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 June 30, 2017 June 30, 2018 June 30, 2019 June 30, 2020

0.17671 % 0.18155 % 0.18627 % 0.19267 %
$ 6,842,255 6,966,181 $ 7,459,379 $ 8,126,992 $
$ 3,211,144 3,198,271 $ 3,595,869 $ 3,860,641 $
217.81 % 213.08 % 207.44 % 210.51 %

73.31 % 75.26 % 75.26 % 75.24 %
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CITY OF DEL MAR, CALIFORNIA

MISCELLANEOUS PLAN
SCHEDULE OF CONTRIBUTIONS – DEFINED BENEFIT PENSION PLAN LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (62)
June 30, 2015 June 30, 2016 June 30, 2017
Contractually Required Contribution
(Actuarially Determined) 411,954 $ 529,486 $ 579,144 $
Contributions in Relation to the Actuarially
Determined Contributions (411,954) (529,486) (579,144)
Contribution Deficiency (Excess) - $ - $ - $
Covered Payroll 2,850,725 $ 3,083,838 $ 3,198,271 $
Contributions as a Percentage of Covered Payroll 14.45 % 17.17 % 18.11 %

NOTES TO SCHEDULE
Valuation Date 6/30/2012 6/30/2013 6/30/2014
Methods and Assumptions Used to Determine Contribution Rates:

Actuarial Cost Method Entry age Entry age Entry age
Amortization Method (1) (1) (1)
Asset Valuation Method 15 Year Market Value Market Value Smoothed
Market Method
Inflation 2.75 % 2.75 % 2.75 %
Salary Increases (2) (2) (2)
Investment Rate of Return 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4)
Mortality (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 50 years for 3.00%@60 and 2.0%@60, 52 years for 2.0%@62** * Fiscal year 2015 was the first year of implementation and therefore only seven years are shown. (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
105 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

MISCELLANEOUS PLAN
SCHEDULE OF CONTRIBUTIONS – DEFINED BENEFIT PENSION PLAN (CONTINUED) LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (63)
June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 $ 742,811 617,792 $ 848,836 $ 903,226 $
(742,811) (617,792) (848,836) (903,226)
$ - - $ - $ - $
$ 3,595,869 3,211,144 $ 3,860,641 $ 3,735,541 $

19.24 % 20.66 % 21.99 % 24.18 %
6/30/2015 6/30/2016 6/30/2017 6/30/2018
Entry age Entry age Entry age Entry age
(1) (1) (1) (1)
Market Value Market Value Market Value Market Value

2.75 % 2.75 % 2.65 % 2.50 %
(2) (2) (2) (2)

7.50% (3) 7.375% (3) 7.25% (3) 7.00% (3)
(4) (4) (4) (4)
(5) (5) (5) (5)
106 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

SAFETY PLAN

SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (64)
June 30, 2015 June 30, 2016 June 30, 2017
Measurement Period June 30, 2014 June 30, 2015 June 30, 2016 Plan's Proportion of the Net Pension Liability 0.07501 % 0.08038 % 0.08286 % Plan's Proportionate Share of the Net Pension Liability 2,814,100 $ 3,311,865 $ 4,291,288 $ Plan's Covered Payroll 1,271,501 $ 1,305,573 $ 1,336,570 $ Plan's Proportionate Share of the Net Pension Liability as as a Percentage of Covered Payroll 221.32 % 253.67 % 321.07 % Plan's Proportionate Share of the Fiduciary Net Position as as a Percentage of the Plan's Total Pension Liability 81.74 % 79.38 % 74.06 %

NOTES TO SCHEDULE
Benefit Changes:

There were no changes in benefits.

Changes in Assumptions:

From fiscal year June 30, 2015 to June 30, 2016:

From fiscal year June 30, 2016 to June 30, 2017:

There were no changes in assumptions.

From fiscal year June 30, 2017 to June 30, 2018:

The discount rate was reduced from 7.65% to 7.15%.

From fiscal year June 30, 2018 to June 30, 2019:

There were no changes in assumptions.

From fiscal year June 30, 2019 to June 30, 2020:

There were no changes in assumptions.

From fiscal year June 30, 2020 to June 30, 2021:

There were no changes in assumptions.
* Fiscal year 2015 was the first year of implementation and therefore only seven years are shown.

CITY OF DEL MAR, CALIFORNIA

SAFETY PLAN

SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY (CONTINUED) LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (65)
June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 June 30, 2017 June 30, 2018 June 30, 2019 June 30, 2020

0.08291 % 0.08578 % 0.08753 % 0.09021 %
$ 5,033,469 4,953,802 $ 5,464,373 $ 6,010,435 $
$ 1,225,539 1,289,037 $ 1,330,403 $ 1,434,515 $
384.30 % 410.71 % 410.73 % 418.99 %

73.31 % 72.26 % 75.26 % 71.92 %
108 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

SAFETY PLAN
SCHEDULE OF CONTRIBUTIONS – DEFINED BENEFIT PENSION PLAN LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (66)
June 30, 2015 June 30, 2016 June 30, 2017
Contractually Required Contribution
(Actuarially Determined) 303,598 $ 336,247 $ 370,167 $
Contributions in Relation to the Actuarially
Determined Contributions (303,598) (336,247) (370,167)
Contribution Deficiency (Excess) - $ - $ - $
Covered Payroll 1,305,573 $ 1,336,570 $ 1,289,037 $
Contributions as a Percentage of Covered Payroll 23.25% 25.16% 28.72%

NOTES TO SCHEDULE
Valuation Date 6/30/2012 6/30/2013 6/30/2014
Methods and Assumptions Used to Determine Contribution Rates:

Actuarial Cost Method Entry age Entry age Entry age
Amortization Method (1) (1) (1)
Asset Valuation Method 15 Year Market Value Market Value Smoothed
Market Method
Inflation 2.75 % 2.75 % 2.75 %
Salary Increases (2) (2) (2)
Investment Rate of Return 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4)
Mortality (5) (5) (5)
(1) Level percentage of payroll, closed
(2) Depending on age, service, and type of employment
(3) Net of pension plan investment expense, including inflation (4) 50 years for 3.00%@50 and 2.0%@50
* Fiscal year 2015 was the first year of implementation and therefore only seven years are shown. (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
109 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

SAFETY PLAN
SCHEDULE OF CONTRIBUTIONS – DEFINED BENEFIT PENSION PLAN (CONTINUED) LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (67)
June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 $ 476,504 399,196 $ 569,914 $ 613,844 $
(476,504) (399,196) (569,914) (613,844)
$ - - $ - $ - $
$ 1,330,403 1,225,539 $ 1,434,515 $ 1,370,574 $

32.57% 35.82% 39.73% 44.79%
6/30/2015 6/30/2016 6/30/2017 6/30/2018
Entry age Entry age Entry age Entry age
(1) (1) (1) (1)
Market Value Market Value Market Value Market Value

2.75 % 2.75 % 2.65 % 2.50 %
(2) (2) (2) (2)

7.50% (3) 7.375% (3) 7.275% (3) 7.00% (3)
(4) (4) (4) (4)
(5) (5) (5) (5)
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CITY OF DEL MAR, CALIFORNIA

GENERAL FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2021
See accompanying Note to Required Supplementary Information. (68)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 12,015,490 $ 12,377,140 $ 13,255,773 $ 878,633 $
Licenses, Fees, and Permits 915,520 1,108,120 1,220,534 112,414 Intergovernmental 35,540 740,515 247,463 (493,052)
Charges for Services 2,010,340 2,410,340 2,563,903 153,563 Fines and Forfeitures 717,000 922,000 1,049,002 127,002 Use of Money and Property 266,710 266,930 219,220 (47,710) Contributions - 207,440 214,996 7,556
Other 302,000 747,170 937,762 190,592
Total Revenues 16,262,600 18,779,655 19,708,653 928,998

EXPENDITURES
Current:

General Government 5,674,870 6,217,041 6,029,236 187,805 Public Safety 7,014,900 7,186,630 7,059,446 127,184
Public Works 304,930 306,812 330,225 (23,413)
Capital Outlay - 843,500 202,168 641,332
Total Expenditures 12,994,700 14,553,983 13,621,075 932,908

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 4,225,672 3,267,900 6,087,578 1,861,906

OTHER FINANCING SOURCES (USES)
Transfers In 323,620 85,631 101,850 (16,219)
Transfers Out (1,704,270) (2,148,410) (1,975,973) 172,437 Total Other Financing Sources (Uses) (1,380,650) (2,062,779) (1,874,123) 156,218 NET CHANGE IN FUND BALANCE 2,162,893 1,887,250 4,213,455 2,018,124 Fund Balance - Beginning of Year 6,257,960 6,257,960 6,257,960 - FUND BALANCE - END OF YEAR $ 8,420,853 8,145,210 $ 10,471,415 $ 2,018,124 $ Budgeted Amounts
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CITY OF DEL MAR, CALIFORNIA

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2021
(70)
NOTE 1 BUDGET AND BUDGETARY ACCOUNTING
The City follows these procedures in establishing the City’s budget:

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 City expenditures in the General, Special Revenue, and Capital Projects Funds. The legal level of budgetary control is at the fund level. The City Manager is authorized to transfer budgeted amounts between individual accounts within a fund. Supplemental budgetary increases in appropriations for the General, Special Revenue, and Capital Project Funds in the amount of $2,824,112 were made during the year ended June 30, 2021.

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.

Unencumbered appropriations at year-end automatically lapse. Those appropriations may be re-encumbered in the following year only after reconsideration.

4. Budgets for the General, Special Revenue, Debt Service and Capital Projects Funds (for which annual budgets were adopted) are adopted on a basis substantially consistent with accounting principles generally accepted in the United States of America. Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items. No budgetary comparisons are presented for the Regional Transportation Congestion Improvement Program (RTCIP) capital project fund and 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 certain proceeds of taxes. If proceeds of taxes exceed allowed appropriations, the excess must be either refunded to the State Controller or returned to the taxpayers through revised tax rates, revised fee schedules, or other refund arrangements. 113 March 7, 2022 Item 07
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114 March 7, 2022 Item 07

SUPPLEMENTARY INFORMATION
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CITY OF DEL MAR, CALIFORNIA

GENERAL FUND

COMBINING BALANCE SHEET
JUNE 30, 2021
(74)
Total
General Fund Measure Q General Fund
ASSETS
Cash and Investments $ 2,837,823 4,520,833 $ $ 7,358,656 Receivables:

Taxes 561,087 763,242 1,324,329
Accrued Interest 2,440 4,181 6,621
Accounts, Net - 4,007,697 4,007,697
Due from Other Agencies - 128,144 128,144
Due from Other Funds - 70,695 70,695
Prepaid Items - 50,415 50,415
Total Assets $ 3,401,350 9,545,207 $ 12,946,557 $

LIABILITIES
Accounts Payable and Accrued Liabilities $ 98,787 1,616,277 $ $ 1,715,064 Deposits Payable - 603,156 603,156
Due to Other Agencies - 6,236 6,236
Total Liabilities 98,787 2,225,669 2,324,456

DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues 150,686 - 150,686
Total Deferred Inflows of Resources - 150,686 150,686

FUND BALANCES
Nonspendable - 50,415 50,415
Assigned 2,825,035 2,825,035 -
Unassigned 4,293,402 7,595,965 3,302,563
Total Fund Balances 3,302,563 7,168,852 10,471,415
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 3,401,350 9,545,207 $ 12,946,557 $ 117 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

GENERAL FUND

COMBINING SCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2021
(75)
Total
General Fund Measure Q General Fund

REVENUES
Taxes 10,950,320 $ 2,305,453 $ $ 13,255,773
Licenses, Fees, and Permits 1,220,534 - 1,220,534
Intergovernmental 247,463 - 247,463
Charges for Services 2,563,903 - 2,563,903
Fines and Forfeitures 1,049,002 - 1,049,002
Use of Money and Property 185,550 33,670 219,220
Contributions 214,996 - 214,996
Other 936,984 778 937,762
Total Revenues 2,339,901 17,368,752 19,708,653

EXPENDITURES
Current:

General Government 6,029,236 - 6,029,236
Public Safety 7,059,446 - 7,059,446
Public Works 330,225 - 330,225
Capital Outlay - 202,168 202,168
Total Expenditures 202,168 13,418,907 13,621,075

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,137,733 3,949,845 6,087,578

OTHER FINANCING SOURCES (USES)
Transfers In 101,850 - 101,850
Transfers Out (1,975,973) - (1,975,973)
Total Other Financing Sources (Uses) - (1,874,123) (1,874,123) NET CHANGE IN FUND BALANCES 2,137,733 2,075,722 4,213,455 Fund Balances - Beginning of Year 1,164,830 5,093,130 6,257,960 FUND BALANCES - END OF YEAR $ 3,302,563 7,168,852 $ 10,471,415 $ 118 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
(76)

SPECIAL REVENUE FUNDS
The Gasoline Tax Special Revenue Fund is used to account for state gasoline taxes received by the City. These funds may be used for street maintenance, right-of-way acquisition, and street construction.

The Open Space Special Revenue Fund accounts for park and beach maintenance, and the Powerhouse Community Center maintenance and operations. It is partially funded by facility use permits for the community center.

The Supplemental Law Enforcement Special Revenue Fund is used to account for grant revenue received by the City from the state of California for supplemental law enforcement expenditures.

The Regional Communications System Special Revenue Fund is used to account for revenue received by the City to maintain its portion of the San Diego County and Imperial County Regional Communications System.

The Grants Special Revenue Fund accounts for federal, state and local grants received by the City and the expenditure of those funds.

The Housing Special Revenue Fund accounts for in-lieu payments from developers and expenditures in support of low-income housing.

The AB 939 Special Revenue Fund accounts for the costs of implementing the countywide integrated waste management plan and programs.

The Road Maintenance and Rehabilitation Account (RMRA) Special Revenue Fund accounts for the City’s share of gas tax monies for the purpose of construction, reconstruction, maintenance, and right-of-way acquisition relating to streets and highways.

CAPITAL PROJECTS FUNDS
The Transnet II Capital Improvement Capital Projects Fund is used to account for the financial resources for the City’s Sidewalk, Street, and Drainage Project.

The Regional Transportation Congestion Improvement Program (RTCIP) Capital Projects Fund accounts for fees received on new development used to mitigate the impacts of residential development.
119 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
JUNE 30, 2021
(77)
Supplemental Regional
Law Communications
Gasoline Tax Open Space Enforcement System
ASSETS
Cash and Investments 24,089 $ 202,558 $ 62,282 $ 15,435 $ Receivables:

Accrued Interest - - 129 -
Accounts, Net 11,674 53,824 - -
Due from Other Agencies - - 61,285 -
Prepaids - 77 - -
Total Assets 35,763 $ 256,459 $ 123,696 $ 15,435 $

LIABILITIES
Accounts Payable and Accrued Liabilities 35,763 $ 33,655 $ - $ - $ Deposits Payable - 35,520 - -
Due to Other Funds - - 62,411 -
Total Liabilities 35,763 69,175 62,411 -

DEFERRED INFLOW OF RESOURCES
Unavailable Revenues - 40,000 61,285 -
Total Deferred Inflow of Resources - 40,000 61,285 -

FUND BALANCES (DEFICIT)
Nonspendable - 77 - -
Restricted for:

Public Safety - - - 15,435
Low-Income Housing - - - -
Public Works - - - -
Street Projects - - - -
Committed to:

Parks and Recreation - 147,207 - -
Unassigned - - - -
Total Fund Balances (Deficits) - 147,284 - 15,435
Total Liabilities, Deferred Inflow of
Resources and Fund Balances $ 256,459 35,763 $ 123,696 $ 15,435 $ Special Revenue Funds
120 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2021
(78)
Transnet II
Capital
Grants Housing AB 939 RMRA Improvements RTCIP Total
$ 253,037 106,647 $ 220,497 $ 73,464 $ 3,088 $ 10,356 $ 971,453 $ 214 106 186 65 3 9 712
- 14,212 14,573 14,418 - - 108,701
- - - - - - 61,285
- - - - - - 77
$ 253,251 120,965 $ 235,256 $ 87,947 $ 3,091 $ 10,365 $ 1,142,228 $ $ 3,500 308 $ 15,995 $ - $ - $ - $ 89,221 $
- - - - - - 35,520
- - - 8,284 - - 70,695
3,500 308 15,995 8,284 - - 195,436
- - - - - - 101,285
- - - - - - 101,285
- - - - - - 77
- 120,657 - - - - 136,092
249,751 - - - - - 249,751
- - 219,261 - - - 219,261
- - - 79,663 3,091 10,365 93,119
- - - - - - 147,207
- - - - - - -
249,751 120,657 219,261 79,663 3,091 10,365 845,507
$ 253,251 120,965 $ 235,256 $ 87,947 $ 3,091 $ 10,365 $ 1,142,228 $ Special Revenue Funds Capital Projects Funds
121 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2021
(79)
Supplemental Regional
Law Communications
Gasoline Tax Open Space Enforcement System

REVENUES
Taxes 101,400 $ 10,958 $ - $ 44,091 $
Licenses, Fees, and Permits - 109,794 - -
Intergovernmental - 1,612 100,000 -
Use of Money and Property - 476 1,850 95
Other - 39,191 - -
Total Revenues 101,400 162,031 101,850 44,186

EXPENDITURES
Current:

General Government - - - -
Public Safety - - - 35,802
Public Works 433,893 - - -
Parks and Recreation - 773,085 - -
Capital Outlay - 84,348 - -
Debt Service:

Principal - - - 42,815
Interest - - - 7,686
Total Expenditures 433,893 857,433 - 86,303

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (695,402) (332,493) 101,850 (42,117)

OTHER FINANCING SOURCES (USES)
Transfers In 309,241 574,391 - 50,501
Transfers Out - - (101,850) -
Total Other Financing Sources (Uses) 574,391 309,241 (101,850) 50,501 NET CHANGE IN FUND BALANCES (121,011) (23,252) - 8,384
Fund Balances - Beginning of Year 23,252 268,295 - 7,051

FUND BALANCES (DEFICITS) - END OF
YEAR $ 147,284 - $ - $ 15,435 $
Special Revenue Funds
122 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

NONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2021
(80)
Transnet II
Capital
Grants Housing AB 939 RMRA Improvements RTCIP Total
$ - - $ - $ 79,123 $ - $ - $ 235,572 $
48,515 - 48,633 - - 2,584 209,526
- 68,264 - - 74,859 - 244,735
3,105 1,523 2,841 540 191 132 10,753
- - - - 1,728 - 40,919
51,620 69,787 51,474 79,663 76,778 2,716 741,505
87,034 - 88,476 - - - 175,510
- 29,308 - - - - 65,110
- - - - - - 433,893
- - - - - - 773,085
- - - - - - 84,348
- - - - 61,586 - 104,401
- - - - - - 7,686
87,034 29,308 88,476 - 61,586 - 1,644,033
(35,414) 40,479 (37,002) 79,663 15,192 2,716 (902,528)
- - - - - - 934,133
- - - - (31,965) - (133,815)
- - - - (31,965) - 800,318
(35,414) 40,479 (37,002) 79,663 (16,773) 2,716 (102,210) 285,165 80,178 256,263 - 19,864 7,649 947,717
$ 249,751 120,657 $ 219,261 $ 79,663 $ 3,091 $ 10,365 $ 845,507 $ Special Revenue Funds Capital Projects Funds
123 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

GASOLINE TAX SPECIAL REVENUE FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2021
(81)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 110,780 $ 110,780 $ 101,400 $ (9,380) $
Other - - - -
Total Revenues 110,780 110,780 101,400 (9,380)

EXPENDITURES
Current:

Public Works 434,090 471,642 433,893 37,749
Total Expenditures 434,090 471,642 433,893 37,749

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (360,862) (323,310) (332,493) 28,369

OTHER FINANCING SOURCES
Transfers In 323,310 337,610 309,241 (28,369)
Total Other Financing Sources 323,310 337,610 309,241 (28,369) NET CHANGE IN FUND BALANCE (23,252) - (23,252) -
Fund Balance - Beginning of Year 23,252 23,252 23,252 - FUND BALANCE - END OF YEAR $ - 23,252 $ - $ - $
Budgeted Amounts
124 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

OPEN SPACE SPECIAL REVENUE FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2021
(82)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 2,070 $ 4,550 $ 10,958 $ 6,408 $
Licenses, Fees, and Permits 205,000 70,950 109,794 38,844 Intergovernmental 2,000 10 1,612 1,602
Use of Money and Property 500 500 476 (24)
Contributions - 40,000 - (40,000)
Other 40,800 41,160 39,191 (1,969)
Total Revenues 250,370 157,170 162,031 4,861

EXPENDITURES
Current:

Parks and Recreation 834,570 874,033 773,085 100,948
Capital Outlay - 110,707 84,348 26,359
Total Expenditures 834,570 984,740 857,433 127,307

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (827,570) (584,200) (695,402) 132,168

OTHER FINANCING SOURCES
Transfers In 584,200 718,820 574,391 (144,429)
Total Other Financing Sources 584,200 718,820 574,391 (144,429) NET CHANGE IN FUND BALANCE (108,750) - (121,011) (12,261) Fund Balance - Beginning of Year 268,295 268,295 268,295 - FUND BALANCE - END OF YEAR $ 159,545 268,295 $ 147,284 $ (12,261) $ Budgeted Amounts
125 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

SUPPLEMENTAL LAW ENFORCEMENT SPECIAL REVENUE FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2021
(83)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 100,000 $ 100,000 $ 100,000 $ - $
Use of Money and Property - - 1,850 1,850
Total Revenues 100,000 100,000 101,850 1,850

OTHER FINANCING USES
Transfers Out (100,000) (100,000) (101,850) (1,850)
Total Other Financing Uses (100,000) (100,000) (101,850) (1,850)

NET CHANGE IN FUND BALANCE - - - -
Fund Balance - Beginning of Year - - - -
FUND BALANCE (DEFICIT) - END OF YEAR $ - - $ - $ - $
Budgeted Amounts
126 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

REGIONAL COMMUNICATIONS SYSTEM SPECIAL REVENUE FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2021
(84)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 45,000 $ 45,000 $ 44,091 $ (909) $
Use of Money and Property - - 95 95
Total Revenues 45,000 45,000 44,186 (814)

EXPENDITURES
Current:

Public Safety 34,500 34,500 35,802 (1,302)
Debt Service:

Principal 42,820 42,820 42,815 5
Interest 7,690 7,690 7,686 4
Total Expenditures 85,010 85,010 86,303 (1,293)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (40,010) (40,010) (42,117) (2,107)

OTHER FINANCING SOURCES
Transfers In (40,010) 40,010 50,501 10,491
Total Other Financing Sources (40,010) 40,010 50,501 10,491 NET CHANGE IN FUND BALANCE - (80,020) 8,384 8,384
Fund Balance - Beginning of Year 7,051 7,051 7,051 -
FUND BALANCE (DEFICIT) - END OF YEAR $ 7,051 (72,969) $ 15,435 $ 8,384 $ Budgeted Amounts
127 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

GRANTS SPECIAL REVENUE FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2021
(85)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 48,470 $ 48,470 $ 68,264 $ 19,794 $
Use of Money and Property 3,000 3,000 1,523 (1,477)
Total Revenues 51,470 51,470 69,787 18,317

EXPENDITURES
Current:

Public Safety 60,740 60,740 29,308 31,432
Total Expenditures 60,740 60,740 29,308 31,432
NET CHANGE IN FUND BALANCE (9,270) (9,270) 40,479 49,749 Fund Balance - Beginning of Year 80,178 80,178 80,178 - FUND BALANCE - END OF YEAR $ 70,908 70,908 $ 120,657 $ 49,749 $ Budgeted Amounts
128 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

HOUSING SPECIAL REVENUE FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2021
(86)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Licenses, Fees, and Permits - $ 44,960 $ 48,515 $ 3,555 $ Use of Money and Property 3,000 3,000 3,105 105
Total Revenues 3,000 47,960 51,620 3,660

EXPENDITURES
Current:

General Government 73,640 87,640 87,034 606
Total Expenditures 73,640 87,640 87,034 606
NET CHANGE IN FUND BALANCE (39,680) (70,640) (35,414) 4,266 Fund Balance - Beginning of Year 285,165 285,165 285,165 - FUND BALANCE - END OF YEAR $ 245,485 214,525 $ 249,751 $ 4,266 $ Budgeted Amounts
129 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA
AB 939 SPECIAL REVENUE FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2021
(87)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Licenses, Fees, and Permits 58,710 $ 58,710 $ 48,633 $ (10,077) $ Use of Money and Property 3,000 3,000 2,841 (159)
Total Revenues 61,710 61,710 51,474 (10,236)

EXPENDITURES
Current:

General Government 58,750 60,402 88,476 (28,074)
Total Expenditures 58,750 60,402 88,476 (28,074)
NET CHANGE IN FUND BALANCE 1,308 2,960 (37,002) (38,310) Fund Balance - Beginning of Year 256,263 256,263 256,263 - FUND BALANCE - END OF YEAR $ 257,571 259,223 $ 219,261 $ (38,310) $ Budgeted Amounts
130 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

ROAD MAINTENANCE AND REHABILITATION ACCOUNT (RMRA) SPECIAL REVENUE FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2021
(88)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 76,400 $ 76,400 $ 79,123 $ 2,723 $
Use of Money and Property - - 540 540
Total revenues 76,400 76,400 79,663 3,263

OTHER FINANCING USES
Transfers Out (76,400) (76,400) - (76,400)
Total Other Financing Uses (76,400) (76,400) - (76,400) NET CHANGE IN FUND BALANCE - - 79,663 (73,137)
Fund Balance - Beginning of Year - - - -
FUND BALANCE - END OF YEAR $ - - $ 79,663 $ 79,663 $
Budgeted Amounts
131 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

TRANSNET II CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2021
(89)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 205,000 $ 205,000 $ 74,859 $ (130,141) $ Use of Money and Property - - 191 191
Total Revenues 205,000 205,000 76,778 (128,222)

EXPENDITURES
Debt Service:

Principal 60,000 60,000 61,586 (1,586)
Interest 145,000 145,000 - 145,000
Total Expenditures 205,000 205,000 61,586 143,414

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES - - 15,192 15,192

OTHER FINANCING USES
Transfers Out - - (31,965) (31,965)
Total Other Financing Uses - - (31,965) (31,965)
NET CHANGE IN FUND BALANCE - - (16,773) (16,773)
Fund Balance - Beginning of Year 19,864 19,864 19,864 - FUND BALANCE - END OF YEAR $ 19,864 19,864 $ 3,091 $ (16,773) $ Budgeted Amounts
132 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND – MAJOR FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2021
(90)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 460,350 $ 460,350 $ 144,140 $ (316,210) $ Total Revenues 460,350 460,350 144,140 (316,210)

EXPENDITURES
General Government 45,280 45,280 45,621 (341)
Capital Outlay 740,000 1,048,065 298,818 749,247
Debt Service:

Principal 378,790 378,790 378,452 338
Interest 482,930 482,930 482,925 5
Total Expenditures 1,647,000 1,955,065 1,205,816 749,249

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,494,715) (1,186,650) (1,061,676) 433,039

OTHER FINANCING SOURCES
Transfers In 1,186,650 1,216,650 1,091,981 (124,669)
Total Other Financing Sources 1,186,650 1,216,650 1,091,981 (124,669) NET CHANGE IN FUND BALANCE (278,065) - 30,305 308,370
Fund Balance - Beginning of Year 278,065 278,065 278,065 - FUND BALANCE - END OF YEAR $ - 278,065 $ 308,370 $ 308,370 $ Budgeted Amounts
133 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

CUSTODIAL FUNDS
JUNE 30, 2021
(91)
Custodial funds are used to account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governments, and/or other funds.

The City of Del Mar has the following custodial funds:
 Stratford and Luneta Undergrounding Assessment District 1989-01  Seawall Refinance Assessment District 1999-01
 Ocean View/Pines Assessment District 2005-001
 North Hills Undergrounding Assessment District 2007-01  Sunset Undergrounding Assessment District 2007-02
134 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

CUSTODIAL FUNDS

COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2021
(92)
Stratford and
Luneta Seawall Ocean View/ North Hill Sunset
Undergrounding Refinance Pines Undergrounding Undergrounding Assessment Assessment Assessment Assessment Assessment
District 1989-01 District 1999-01 District 2005-01 District 2007-01 District 2007-02 Total ASSETS
Accounts Receivable 90 $ 21 $ 59 $ - $ 9 $ 179 $
Restricted Assets:

Cash and Investments 106,056 24,724 67,403 - 10,418 208,601 Total Assets 106,146 24,745 67,462 - 10,427 208,780

NET POSITION
Restricted for Bond Holders 106,146 24,745 67,462 - 10,427 208,780 Unrestricted - - - - - -
Total Net Position 106,146 $ 24,745 $ 67,462 $ - $ 10,427 $ 208,780 $ 135 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

CUSTODIAL FUNDS

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2021
(93)
Stratford and
Luneta Seawall Ocean View/ North Hill Sunset
Undergrounding Refinance Pines Undergrounding Undergrounding Assessment Assessment Assessment Assessment Assessment
District 1989-01 District 1999-01 District 2005-01 District 2007-01 District 2007-02 Total

ADDITIONS
Interest Income $ 293 1,249 $ 547 $ - $ 125 $ 2,214 $
Special Assessments or
Special Taxes Collected
from Property Owners - - 47,093 - - 47,093
Contribution from City - - - 37,130 - 37,130
Total Additions 293 1,249 47,640 37,130 125 86,437

DEDUCTIONS
Payment for Special
Assessment or Special
Tax Debt - - 55,638 - - 55,638
Total Deductions - - 55,638 - - 55,638
CHANGE IN NET POSITION 293 1,249 (7,998) 37,130 125 30,799 Total Net Position (Deficit) -
Beginning of Year, as
Restated 104,897 24,452 75,460 (37,130) 10,302 177,981

TOTAL NET POSITION
(DEFICIT) - END OF YEAR $ 24,745 106,146 $ 67,462 $ - $ 10,427 $ 208,780 $ 136 March 7, 2022 Item 07
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137 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

STATISTICAL SECTION
FISCAL YEAR 2020-2021
(95)
This part of the City of Del Mar’s (the City) Comprehensive Annual Financial Report (CAFR) presents detailed information as a context for understanding what the information in the financial statements, notes to the basic financial statements, and required supplementary information report about the City’s overall financial health.

Contents Page

Financial Trends 96
These tables contain trend information that may assist the reader in the City’s current financial performance by placing it in historical perspective.

Revenue Capacity 107
These tables contain information that may help in assessing the viability of the City’s most significant revenue sources – property taxes, transient occupancy tax (TOT), and sales and use tax.

Debt Capacity 116
These tables present information that may assist the reader in analyzing the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information 122
These tables offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information 125
These tables contain service and infrastructure indicators that may inform one’s understanding on how the information in the City’s financial statements relate to the services that the City provides and the activities it performs.

138 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA
NET POSITION BY COMPONENT(1)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(96)
2011-2012 2012-2013 (2) 2013-2014 (3) 2014-2015
Governmental Activities:

Net Investment in Capital Assets 47,943,072 $ 55,606,641 $ 59,605,566 $ 59,266,263 $ Restricted 2,143,980 965,813 980,148 795,930
Unrestricted 5,025,740 4,743,258 217,804 3,680,641
Total Governmental Activities 55,112,792 $ 61,315,712 $ 60,803,518 $ 63,742,834 $ Business-Type Activities:

Net Investment in Capital Assets 19,876,130 $ 20,592,138 $ 18,867,190 $ 19,468,010 $ Restricted - - - -
Unrestricted 3,845,994 2,697,664 2,730,948 2,532,915
Total Business-Type Activities 23,722,124 $ 23,289,802 $ 21,598,138 $ 22,000,925 $ Primary Government:

Net Investment in Capital Assets 67,819,202 $ 76,198,779 $ 78,472,756 $ 78,734,273 $ Restricted 2,143,980 965,813 980,148 795,930
Unrestricted 8,871,734 7,440,922 2,948,752 6,213,556
Total Primary Government 78,834,916 $ 84,605,514 $ 82,401,656 $ 85,743,759 $ Notes:
(b) enabling legislation is enacted by the City.

Fiscal Year
(1) Accounting standards require that the net position be reported in three components in the financial statements:
investment in capital assets, net of related debt, restricted, and unrestricted.

The net position is considered restricted only when -
(2) Fiscal Year 2012-2013 amounts were restated to record expense related to the pension debt for CalPERS side fund, and to remove unamortized bond issuance costs for the implementation of GASB Statement 65. (3) Fiscal Year 2013-2014 amounts were restated to measure and recognize pension liabilities for the implementation of GASB 68 and GASB 71.
(a) an external party, such as the State of California or the federal government, places a restriction on how the revenues may be used, or
139 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA
NET POSITION BY COMPONENT(1) (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(97)
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 $ 70,677,865 63,917,170 $ 70,478,246 $ 71,168,471 $ 73,838,956 $ 72,058,048 $ 779,035 706,189 755,945 690,821 679,422 949,920
(1,945,483) 3,657,031 2,549,881 1,320,489 (1,830,925) 1,677,116 $ 69,511,417 68,280,390 $ 73,784,072 $ 73,179,781 $ 72,687,453 $ 74,685,084 $ $ 21,782,050 21,145,247 $ 21,388,165 $ 20,887,789 $ 20,418,606 $ 20,447,077 $ - - - - 563,791 -
1,425,671 1,565,516 1,219,695 1,850,025 1,250,437 2,435,104 $ 23,207,721 22,710,763 $ 22,607,860 $ 22,737,814 $ 22,232,834 $ 22,882,181 $ $ 92,459,915 85,062,417 $ 91,866,411 $ 92,056,260 $ 94,257,562 $ 92,505,125 $ 779,035 706,189 755,945 690,821 1,243,213 949,920
(519,812) 5,222,547 3,769,576 3,170,514 (1,011,528) 4,112,220 $ 92,719,138 90,991,153 $ 96,391,932 $ 95,917,595 $ 94,489,247 $ 97,567,265 $ Fiscal Year
140 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(98)
2011-2012 2012-2013 (2) 2013-2014 2014-2015

EXPENSES
Governmental Activities:

General Government 4,817,999 $ 4,577,084 $ 4,328,963 $ 4,748,943 $ Public Safety 6,463,932 5,365,983 5,472,799 5,705,795
Public Works 491,439 923,784 943,013 1,649,191
Parks and Recreation 732,882 776,639 839,063 835,545
Interest on Long-Term Debt 22,603 15,813 8,438 158,679
Total Governmental Activities Expenses 11,430,906 12,757,252 11,592,276 13,098,153 Business-Type Activities:

Water 2,759,682 2,544,512 2,964,821 3,165,994
Wastewater 2,786,105 2,608,785 2,759,107 2,965,384
Clean Water 425,569 416,849 411,143 439,752
Total Business-Type Activities Expenses 5,570,146 5,971,356 6,135,071 6,571,130 Total Primary Government Expenses 17,001,052 $ 18,728,608 $ 17,727,347 $ 19,669,283 $

PROGRAM REVENUES
Governmental Activities:

Charges for Services:

General Government 1,112,124 $ 1,117,178 $ 1,388,029 $ 1,646,441 $ Public Safety 1,312,948 1,382,429 1,318,815 1,457,029
Public Works 2,165 - 2,209 -
Parks and Recreation 466,632 414,556 443,169 410,206
Operating Grants and Contributions 282,071 277,781 311,393 285,416 Capital Grants and Contributions 8,474,616 7,358,463 3,874,226 951,754 Total Governmental Activities Program Revenues 11,717,872 10,483,091 7,337,841 4,750,846 Business-Type Activities:

Charges for Services:

Water 2,711,877 2,477,171 2,861,908 2,822,138
Wastewater 2,998,521 2,874,751 3,048,006 3,675,632
Clean Water 404,313 382,709 395,404 408,037
Capital Grants and Contributions 5,000 - 5,000 5,000
Total Business-Type Activities Program Revenues 5,739,631 6,114,711 6,310,318 6,910,807 Total Primary Government Revenues 17,457,503 $ 16,597,802 $ 13,648,159 $ 11,661,653 $ NET REVENUES (EXPENSES) (1)
Governmental Activities 286,966 $ (2,274,161) $ (4,254,435) $ (8,347,307) $ Business-Type Activities 169,485 143,355 175,247 339,677 Total Net Revenues (Expenses) $ 456,451 $ (2,130,806) $ (4,079,188) $ (8,007,630)

GENERAL REVENUE AND OTHER CHANGES

IN NET POSITION
Governmental Activities:

Taxes:

Property Taxes 4,647,145 $ 4,971,265 $ 5,329,825 $ 5,291,352 $ Sales and Use Tax 1,674,709 1,628,442 1,700,688 1,998,279 Transient Occupancy Tax 1,805,475 1,939,699 2,101,634 2,444,275 Franchise Tax 384,220 421,518 373,589 367,471
Business License Tax 191,786 210,243 191,734 208,898
Intergovernmental - Unrestricted Other 205,319 117,062 209,226 278,081 Investment Income 83,424 161,140 190,457 239,734
Sale of Capital Assets 18,811 - - -
Other 412,954 424,070 228,085 493,914
Transfers (108,563) (16,785) (19,615) (35,381)
Total Governmental Activities 9,339,405 9,832,529 10,305,623 11,286,623 Business-Type Activities:

Unrestricted Investment Earnings 13,260 24,395 5,591 27,729 Other 26,060 25,242 - -
Transfers 108,563 16,785 19,615 35,381
Total Business-Type Activities 55,287 159,017 25,206 63,110 Total Primary Government 9,394,692 $ 9,991,546 $ 10,330,829 $ 11,349,733 $

CHANGE IN NET POSITION
Governmental Activities 9,626,371 $ 7,558,368 $ 6,051,188 $ 2,939,316 $ Business-Type Activities 224,772 323,493 200,453 402,787 Total Primary Government 9,851,143 $ 7,881,861 $ 6,251,641 $ 3,342,103 $ NOTE
- Amounts without parentheses are net revenues, meaning that program revenues were more than sufficient to cover expenses. (2) Fiscal Year 2012-2013 amounts were restated to remove unamortized bond issuance costs for the implementation of GASB Statement 65.

Fiscal Year
(1) Net revenues (expenses) is the difference between program revenues and expenses of a function or program. It indicates the degree to which a function or program is supported with its own fees and program specific grants versus its reliance upon funding from taxes and other general revenues. - Amounts in parentheses are net expenses, indicating that expenses were greater than program revenues, and therefore, general revenues were needed to finance that
141 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(99)
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 $ 6,676,027 5,362,200 $ 6,360,890 $ 8,461,528 $ 9,079,633 $ 7,048,840 $ 6,676,661 5,716,667 6,861,913 7,104,779 7,955,624 7,699,253 1,892,772 1,410,511 1,889,260 5,895,910 2,656,048 2,514,209 951,289 936,586 894,067 776,548 1,162,397 773,562
719,263 155,143 668,368 653,705 630,051 485,322
16,916,012 13,581,107 16,674,498 22,892,470 21,483,753 18,521,186 3,286,281 3,072,195 3,323,365 3,375,306 3,666,650 3,779,243 2,530,107 2,500,851 2,996,746 3,217,465 4,029,879 3,638,587 532,792 464,373 498,076 559,551 599,643 515,052
6,349,180 6,037,419 6,818,187 7,152,322 8,296,172 7,932,882 $ 23,265,192 19,618,526 $ 23,492,685 $ 30,044,792 $ 29,779,925 $ 26,454,068 $ $ 1,735,309 1,547,069 $ 1,894,634 $ 1,789,928 $ 1,913,924 $ 2,232,648 $ 1,405,751 1,382,501 1,778,983 1,868,370 1,870,581 2,670,239 - - 2,404 2,483 - 2,584
378,446 383,027 418,447 413,491 225,363 109,794
522,338 231,257 481,814 329,537 467,683 553,325
885,773 1,802,911 585,058 915,994 955,619 707,085
4,927,617 5,346,765 5,161,340 5,319,803 5,433,170 6,275,675 3,085,668 2,745,721 3,440,656 3,348,654 3,675,298 4,262,987 3,283,228 3,486,362 3,096,774 3,261,067 3,362,819 3,657,548 476,980 420,388 546,730 548,327 562,349 591,694
5,000 5,000 5,000 - - 29,148
6,850,876 6,657,471 7,089,160 7,158,048 7,600,466 8,541,377 $ 11,778,493 12,004,236 $ 12,250,500 $ 12,477,851 $ 13,033,636 $ 14,817,052 $ $ (11,988,395) (8,234,342) $ (11,513,158) $ (17,572,667) $ (16,050,583) $ (12,245,511) $ 501,696 620,052 270,973 5,726 (695,706) 608,495
$ (7,614,290) $ (11,486,699) $ (11,242,185) $ (17,566,941) $ (16,746,289) $ (11,637,016) $ 6,752,952 5,640,285 $ 6,491,063 $ 6,679,052 $ 6,993,953 $ 7,496,882 $ 2,227,309 2,332,522 4,854,514 5,043,747 3,752,696 3,453,423 2,697,297 2,617,866 3,001,300 2,982,510 2,300,504 1,792,090 459,271 369,524 387,466 424,930 390,482 324,805
240,103 226,508 241,008 243,198 235,557 229,534
133,399 182,140 212,514 162,280 120,701 79,645
245,548 298,974 386,787 519,309 387,953 229,973
- 108,023 - - - -
437,304 1,050,341 211,161 913,350 1,023,262 1,049,654
26,239 (54,285) - - (77,893) 18,176
13,219,422 12,771,898 15,785,813 16,968,376 15,127,215 14,674,182 21,501 35,501 34,566 124,228 112,833 59,028
- - - - - -
(26,239) 54,285 77,893 (18,176)
(4,738) 89,786 34,566 124,228 190,726 40,852
$ 13,214,684 12,861,684 $ 15,820,379 $ 17,092,604 $ 15,317,941 $ 14,715,034 $ $ 1,231,027 4,537,556 $ 4,272,655 $ (604,291) $ (923,368) $ 2,428,671 $ 496,958 709,838 305,539 129,954 (504,980) 649,347
$ 1,727,985 5,247,394 $ 4,578,194 $ $ (474,337) $ 3,078,018 (1,428,348) $ Fiscal Year
142 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(100)
2011-2012 2012-2013 2013-2014 2014-2015

GENERAL FUND
Nonspendable 525,151 $ - $ - $ - $
Assigned 1,470,192 1,475,704 1,471,791 1,471,791
Unassigned 2,384,635 1,446,003 2,345,865 3,806,755
Total General Fund 4,379,978 $ 2,921,707 $ 3,817,656 $ 5,278,546 $

OTHER GOVERNMENTAL FUNDS
Nonspendable - $ - $ - $ - $
Restricted 976,276 965,812 980,148 795,930
Committed 181,806 167,503 207,819 299,415
Assigned 1,180,204 1,535,486 2,729,399 4,451,680
Total Other Governmental Funds 2,338,286 $ 2,668,801 $ 3,917,366 $ 5,547,025 $ Fiscal Year
143 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(101)
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 $ 23,338 - $ 6,579 $ 2,877 $ 3,341 $ 50,415 $
2,233,502 1,530,159 5,100,305 2,669,278 3,747,450 2,825,035 5,647,975 4,192,011 3,633,422 5,558,534 2,507,169 7,595,965 $ 7,904,815 5,722,170 $ 8,740,306 $ 8,230,689 $ 6,257,960 $ 10,471,415 $ $ - - $ - $ - $ - $ 77 $
779,035 706,189 755,945 690,821 679,422 698,223
299,688 302,160 193,395 395,516 268,295 147,207
(3,571,263) 3,737,345 805,635 320,493 278,065 308,370
$ (2,492,540) 4,745,694 $ 1,754,975 $ 1,406,830 $ 1,225,782 $ 1,153,877 $ Fiscal Year
144 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(102)
2011-2012 2012-2013 2013-2014 2014-2015

REVENUES
Taxes 8,858,700 $ 9,284,503 $ 9,865,474 $ 10,469,129 $
Licenses and Permits 1,047,420 1,036,973 1,320,317 1,432,809 Intergovernmental 8,077,378 7,638,143 4,165,489 1,167,061 Charges for Services 1,098,148 1,190,559 1,296,138 1,447,608 Fines and Forfeitures 815,617 669,665 586,367 633,259
Use of Money and Property 79,311 154,539 190,457 239,733 Contributions 657,875 36,921 17,368 26,100
Other Revenues 416,689 411,397 221,469 657,152
Total Revenues 21,051,138 20,422,700 17,663,079 16,072,851

EXPENDITURES
General Government 4,848,423 5,903,824 4,326,650 4,465,857 Public Safety 5,380,136 6,457,063 5,442,607 5,707,066
Public Works 544,546 767,200 486,619 565,436
Parks and Recreation 734,815 775,814 809,797 796,933
Capital Outlays 9,796,937 7,664,337 4,960,745 2,652,017 Debt Service:

Principal 150,000 155,000 165,000 886,500
Interest and Fiscal Charges 25,290 18,655 11,532 158,718 Cost of Issuance - - - -
Total Expenditures 21,480,147 21,741,893 16,202,950 15,232,527

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,319,193) (429,009) 1,460,129 840,324

OTHER FINANCING SOURCES (USES)
Proceeds from Capital Lease - - - -
Issuance of Debt - - 704,000 2,285,606
Sale of Capital Assets 18,811 - - -
Transfers In 1,183,682 1,779,347 2,180,793 2,739,389
Transfers Out (1,200,466) (1,587,910) (2,200,408) (2,774,770) Total Other Financing Sources (Uses) 2,027 191,437 684,385 2,250,225 NET CHANGE IN FUND BALANCES $ (1,127,756) (426,982) $ 2,144,514 $ 3,090,549 $ Debt Service as a Percentage
of Noncapital Expenditures 1.50 % 1.23 % (2) 1.57 % 8.31 % NOTE
(1) The increased debt service percentage is due to the payoff of the loan on the Shores Property which came from the sale of the Balboa lot.
(2) The increase in expenditures is due to the payoff of the California Employees' Retirement System (CalPERS) Side Fund liability.

Fiscal Year
145 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(103)
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 $ 12,483,838 11,291,573 $ 15,119,862 $ 15,561,911 $ 13,865,011 $ 13,491,345 $ 1,473,672 1,313,261 1,560,470 1,424,462 1,175,755 1,430,060 640,435 2,049,910 940,761 1,144,117 1,247,627 636,338
1,537,125 1,471,767 1,760,952 1,969,158 2,102,617 2,563,903 561,080 579,364 716,505 740,862 797,887 1,049,002
245,548 298,973 496,853 519,309 387,953 229,973
77,464 13,612 161,500 25,730 32,680 214,996
1,101,638 1,046,464 190,250 902,630 1,028,748 978,681
18,120,800 18,064,924 20,947,153 22,288,179 20,638,278 20,594,298 6,212,785 5,055,390 5,921,425 7,459,736 7,511,186 6,250,367 6,411,309 5,769,859 6,405,468 6,823,281 7,309,028 7,124,556 646,739 589,870 613,939 753,994 860,139 764,118
910,515 907,484 834,530 916,556 945,702 773,085
11,952,324 6,620,181 12,347,347 7,643,140 4,953,541 585,334 88,352 50,000 481,658 478,878 499,788 482,853
506,960 155,143 672,959 657,891 634,778 490,611
161,610 - - - - -
26,890,594 19,147,927 27,277,326 24,733,476 22,714,162 16,470,924 (8,769,794) (1,083,003) (6,330,173) (2,445,297) (2,075,884) 4,123,374 - 157,431 - - - -
3,687,966 622,150 11,413,179 1,587,535 - -
- - - - - -
2,156,104 3,642,313 6,491,721 3,452,909 3,390,584 2,127,964 (2,129,865) (3,696,598) (6,491,721) (3,452,909) (3,468,477) (2,109,788) 3,714,205 725,296 11,413,179 1,587,535 (77,893) 18,176
$ (5,055,589) (357,707) $ 5,083,006 $ (857,762) $ (2,153,777) $ 4,141,550 $

1.64 % 3.99 % 7.73 % 6.65 % 6.39 % 6.13 %
Fiscal Year
146 March 7, 2022 Item 07
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147 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE

LAST TEN FISCAL YEARS
(105)
Transient Business
Fiscal Property Sales & Use District Occupancy Franchise License Year Taxes (1) Tax (2) Tax (3) Tax Tax Tax Total
2020-2021 7,496,882 $ 1,147,970 $ 2,305,453 $ 1,792,090 $ 324,805 $ 229,534 $ 13,296,734 $ 2019-2020 6,993,953 1,472,389 2,280,307 2,300,504 390,482 235,557 13,673,192 2018-2019 6,679,052 2,208,416 2,835,331 2,982,510 424,930 243,198 15,373,438 2017-2018 6,491,063 2,136,523 2,717,991 3,001,300 387,466 241,008 14,975,351 2016-2017 6,752,952 1,492,965 734,344 2,697,297 459,271 240,103 12,376,932 2015-2016 5,640,285 2,332,522 - 2,617,866 369,524 226,508 11,186,705 2014-2015 5,291,352 1,998,279 - 2,444,275 367,471 208,898 10,310,275 2013-2014 5,329,825 1,700,688 - 2,101,634 373,589 191,734 9,697,470 2012-2013 4,971,265 1,674,709 - 1,939,699 384,220 191,786 9,161,679 2011-2012 4,647,145 1,628,442 - 1,805,475 421,518 210,243 8,712,823 Change from
Base Year 2011 55.06 % (5.10)% 100.00 % 34.95 % (3.03)% 19.19 % 63.42 % Notes:
(1) Includes Property Tax In-lieu of Vehicle License Fee (VLF) as part of the State's VLF for Property Tax Swap Adjustment. (3) Measure Q for 1% District tax was passed in Fiscal year 2016-17. (2) Includes Property Tax In-Lieu of Sales Tax as part of the State's Sales and Use Tax Triple Flip Adjustment. The triple flip sales tax adjustment ended in Fiscal year 2015-16.
148 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION(1)

LAST TEN FISCAL YEARS
(106)
Parks
Fiscal General Public Public and Capital Debt
Year Government Safety Works Recreation Outlay Service (2) Total 2020-2021 6,250,367 $ 7,124,556 $ 764,118 $ 773,085 $ 585,334 $ 973,464 $ 16,470,924 $ 2019-2020 7,511,186 7,309,028 860,139 945,702 4,953,541 1,134,566 22,714,162 2018-2019 7,459,736 6,823,281 753,994 916,556 7,643,140 1,136,769 24,733,476 2017-2018 5,921,425 6,405,468 613,939 834,530 12,347,347 1,154,617 27,277,326 2016-2017 6,212,785 6,411,309 646,739 910,515 11,952,324 756,922 26,890,594 2015-2016 5,055,390 5,769,859 589,870 907,484 6,620,181 205,143 19,147,927 2014-2015 4,465,857 5,707,066 565,436 796,933 2,652,017 1,045,218 15,232,527 2013-2014 4,326,650 5,442,607 486,619 809,797 4,960,745 176,532 16,202,950 2012-2013 5,903,824 6,457,063 767,200 775,814 7,664,337 173,655 21,741,893 2011-2012 4,848,423 5,380,136 544,546 734,815 9,796,937 175,290 21,480,147 Notes:
(1) These amounts include all governmental fund types and exclude other financing sources (uses). (2) These amounts include lease and bond payments toward debt service. 149 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

ASSESSED VALUE OF PROPERTY BY USER CODE

LAST TEN FISCAL YEARS
(107)
Category 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 Residential 2,455,807,004 $ 2,580,568,065 $ 2,691,922,002 $ 2,873,316,023 $ 3,084,334,222 $ Commercial 199,024,611 258,451,071 260,013,522 265,411,786 271,336,627 Industrial 2,516,402 2,956,947 2,970,364 3,014,195 3,048,474 Institutional 2,767,844 2,823,200 2,836,017 2,892,680 2,936,793 Recreational 8,765,703 9,364,269 9,689,662 11,214,206 11,767,616 Total 2,668,881,564 $ 2,854,163,552 $ 2,967,431,567 $ 3,155,848,890 $ 3,373,423,732 $ Note:
(1) In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of one percent 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 of two percent. With few exemptions, the property is reassessed as a result of new construction or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value 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 limitation just mentioned. - The amounts represent total assessed value of real property, excluding personal property and fixtures, prior to exemptions.

Fiscal Year
150 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

ASSESSED VALUE OF PROPERTY BY USER CODE (CONTINUED)

LAST TEN FISCAL YEARS
(108)
2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
$ 3,433,325,030 3,253,273,422 $ 3,643,775,875 $ 3,875,115,458 $ 4,024,078,136 $ 283,644,529 278,157,135 309,755,624 322,793,000 306,435,872 2,569,569 3,199,522 2,620,955 3,162,334 3,195,089
3,055,438 2,995,528 3,116,546 3,178,876 3,211,808
13,817,906 13,338,452 15,850,559 12,487,932 2,092,944
$ 3,736,412,472 3,550,964,059 $ 3,975,119,559 $ 4,216,737,600 $ 4,339,013,849 $ Fiscal Year
151 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA
ESTIMATED VALUE OF TAXABLE PROPERTY(1)

LAST TEN FISCAL YEARS
(109)
Fiscal Assessed Number Assessed Number Assessed Number
Year Value of Parcels Value of Parcels Value of Parcels 2020-2021 4,024,078,136 $ 4,203 306,435,872 $ 103 3,195,089 $ 7 2019-2020 3,875,115,458 4,202 322,793,000 101 3,162,334 7 2018-2019 3,643,775,875 4,203 309,755,624 101 2,620,955 7 2017-2018 3,433,325,030 4,202 283,644,529 102 2,569,569 7 2016-2017 3,253,273,422 4,200 278,157,135 101 3,199,522 8 2015-2016 3,084,334,222 4,199 271,336,627 102 3,048,474 8 2014-2015 2,873,316,023 4,198 265,411,786 102 3,014,195 9 2013-2014 2,691,922,002 4,199 260,013,522 102 2,970,364 9 2012-2013 2,580,568,065 4,199 258,451,071 102 2,956,947 9 2011-2012 2,455,807,004 4,197 199,024,611 101 2,516,402 9 Notes:
(1) Report formatting changes have been made to comply with the GASB Number 44 standard reporting requirement. Public utility values are not included in this report. (2) The total direct tax rate is the weighted average of all individual direct rates applied by the government providing the statistical information.

Residential Commercial Industrial
152 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA
ESTIMATED VALUE OF TAXABLE PROPERTY(1) (CONTINUED)

LAST TEN FISCAL YEARS
(110)
Total
Direct
Assessed Number Assessed Number Assessed Number Tax
Value of Parcels Value of Parcels Value of Parcels Rate (%) (2) $ 1 3,211,808 2,092,944 $ 337 4,339,013,849 $ 4,651 0.14775 1 3,178,876 12,487,932 340 4,216,737,600 4,651 0.14775
1 3,116,546 15,850,559 342 3,975,119,559 4,654 0.14775
1 3,055,438 13,817,906 342 3,736,412,472 4,654 0.14775
1 2,995,528 13,338,452 346 3,550,964,059 4,656 0.14775
1 2,936,793 11,767,616 350 3,373,423,732 4,660 0.14775
1 2,892,680 11,214,206 337 3,155,848,890 4,647 0.14775
1 2,836,017 9,689,662 234 2,967,431,567 4,545 0.14775
1 2,823,200 9,364,269 231 2,854,163,552 4,542 0.14775
1 2,767,844 8,765,703 241 2,668,881,564 4,549 0.14775
Institutional Recreational Total
153 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

CONSTRUCTION PERMITS

LAST TEN FISCAL YEARS
(111)
Fiscal Number of Number of Number of Number of
Year Permits Valuation Permits Valuation Permits Valuation Permits Valuation 2020-2021 173 19,649,957 $ 12 3,761,147 $ 27 48,209 $ 212 23,459,313 $ 2019-2020 129 16,153,000 17 1,931,000 31 80,666 177 18,164,666 2018-2019 181 10,456,000 9 300,000 62 114,653 252 10,870,653 2017-2018 105 15,674,999 5 278,000 41 124,514 151 16,077,513 2016-2017 90 13,885,482 24 13,700,850 2 2,175 116 27,588,507 2015-2016 75 10,798,630 17 572,000 29 568,000 121 11,938,630 2014-2015 101 12,075,924 3 338,000 17 692,481 121 13,106,405 2013-2014 73 10,921,237 12 951,835 29 128,831 114 12,001,903 2012-2013 64 7,771,721 11 112,926 34 771,850 109 8,656,497 2011-2012 59 6,784,857 13 2,293,192 28 419,202 100 9,497,251 Construction (1)
Residential Commercial Total
154 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA
PROPERTY TAX RATES(1) – ALL OVERLAPPING GOVERNMENTS

LAST TEN FISCAL YEARS
(RATE PER $100 OF TAXABLE VALUE)
(112)
San Diego
Total City of Total County Water Total
Fiscal Del Mar San Diego Del Mar County School Authority Special Year Debt Service County Direct Tax Base Districts (2) (SDCWA) Districts Total 2020-2021 - 0.85225 0.14775 1.00000 0.06302 0.00350 0.06652 1.06652 2019-2020 - 0.85225 0.14775 1.00000 0.06291 0.00350 0.06641 1.06641 2018-2019 - 0.85225 0.14775 1.00000 0.03592 0.00350 0.03942 1.03942 2017-2018 - 0.85225 0.14775 1.00000 0.03672 0.00350 0.04022 1.04022 2016-2017 - 0.85225 0.14775 1.00000 0.02275 0.00350 0.02625 1.02625 2015-2016 - 0.85225 0.14775 1.00000 0.02272 0.00350 0.02622 1.02622 2014-2015 - 0.85225 0.14775 1.00000 0.02147 0.00350 0.02497 1.02497 2013-2014 0.00635 0.85225 0.14775 1.00000 0.03781 0.00350 0.04131 1.04766 2012-2013 0.00705 0.85225 0.14775 1.00000 - 0.00350 0.00350 1.01055 2011-2012 0.00600 0.85225 0.14775 1.00000 - 0.00370 0.00370 1.00970 Note:
(1) Tax Rate Area: TRA 11-001
(2) FY 2019-2020 is the first year of collection for Del Mar Union School District Measure MM.

County Special Districts
155 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

TEN LARGEST PROPERTY TAXPAYERS

CURRENT FISCAL YEAR AND TEN YEARS AGO
(113)
Percent of Percent of
Total City Total City
Assessed Assessed Assessed Assessed
Owner/Taxpayer Primary Use Valuation Valuation Valuation Valuation Lhoberge LP Property management 82,168,153 $ 1.94 % - $ - % Brixton Del Mar Plaza T IC LLC Property management 49,054,860 1.16 - - Jacobs Family Trust Trust 40,396,110 0.95 30,733,629 1.17 KS Mattson Partners LP Trust 33,937,441 0.80 - -
Allred Family Living Survivors Trust Trust 33,629,348 0.79 46,320,435 1.77 Del Marl LLC Property management 32,500,000 0.77 - -
Del Mar Thoroughbred Club Horse racing club 28,557,288 0.67 25,403,085 0.97 Jennifer A. Moores Trust 27,133,963 0.64 - -
Folding Door Trust Trust 25,105,933 0.59 - -
McCarthy Revocable Survivors Trust Trust 24,481,656 0.58 20,898,179 0.80 GLL BVK Properties 2007 LP Property management - - 41,913,248 1.60 Madeleine A Pickens Trust Trust - - 36,601,245 1.40
Stensrud Fmily Trust Trust - - 28,514,670 1.09
L-O Delmar Holding Inc Property management - - 25,626,097 0.98 La Atalaya LLC Property management - - 19,388,844 0.74
Marsha J Naify Living Trust Trust - - 19,199,965 0.73
Top Ten Totals (Secured and Unsecured) 376,964,752 8.90 294,599,397 11.24 All Others (Secured) 3,856,230,155 91.10 2,327,225,356 88.76 Total Assessed Valuation 4,233,194,907 $ 100.00 2,621,824,753 $ 100.00 Fiscal Year 2020-2021 Fiscal Year 2011-2012
156 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA
TOP 25 SALES TAX PRODUCERS

CURRENT FISCAL YEAR AND TEN YEARS AGO
(114)
Taxpayers Business Type Taxpayers Business Type
1 Americana Casual Dining Americana Casual Dining
2 Banana Republic Family Apparel Banana Republic Family Apparel 3 Beeside Balcony Casual Dining Board & Brew Casual Dining 4 Brigantine Casual Dining Brigantine Casual Dining
5 Chinese Double Happiness Restaurant Casual Dining Bully's Del Mar Casual Dining 6 Del Mar Blue Print Co Business Services Chicken Charlies Enterprises Quick-Service Restaurants 7 Del Mar Café Quick-Service Restaurants Del Mar Blue Print Company Business Services 8 Del Mar Car Care Auto Repair Shops Del Mar Rendezvous Casual Dining 9 Del Mar Liquor & Deli Convenicent Stores/Liquor Del Mar Thoroughbred Club Leisure/Entertainment 10 Del Mar Pizza & Pasta Casual Dining Design Line Interiors Home Furnishings 11 Del Mar Rendezvous Casual Dining En Fuego Cantina & Grill Casual Dining 12 Del Mar Thoroughbred Club Leisure/Entertainment Flavor Del Mar Fine Dining 13 Dexters Deli Specialty Stores Garys & Company Men's Apparel 14 El Agave Del Mar Casual Dining Il Fornaio Fine Dining 15 En Fuego Cantina & Grill Casual Dining Jakes Del Mar Casual Dining 16 Exquisite Kitchen Designe Home Furnishings Jimmy Os Casual Dining 17 Il Fornaio Fine Dining L'Auberge Del Mar Hotels-Liquor 18 Jakes Del Mar Casual Dining McDonalds Quick-Service Rest. 19 L'Auberge Del Mar Hotels-Liquor Miwall Corp Sporting Goods/Bike Store 20 Pacifica Del Mar Restaurant Casual Dining Nettle Creek Shop Home Furnishings 21 Poseidon on The Beach Casual Dining Pacific Del Mar Fine Dining 22 Rusty Surfboards Del Mar Sporting Goods/Bike Stores Poseidon Restaurant Casual Dining 23 Sbicca Fine Dining Premier Food Services Quick-Service Restaurants 24 Shinbashi Izakaya Casual Dining Sbicca Fine Dining
25 Viewpoint Brewing Co Casual Dining State of California Government/Social Org.

Percentage of Total Sales Tax Collected: 70.74 % 64.25 % Note: The names are listed in alphabetical order and not by sales tax volume. * These sales tax producers are intermittently conducting business in the Del Mar Fairgrounds.

Fiscal Year 2019-2020 Fiscal Year 2010-2011
157 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

PROPERTY TAX LEVIES, TAX COLLECTIONS, AND DELINQUENCIES

LAST TEN FISCAL YEARS
(115)
Secured Percentage of Collections in
Fiscal Taxes Collections Collections Subsequent Total Percentage of Year Charge (1) at Year-End at Year-End Years Collections Levy 2020-2021 $ 5,943,768 6,009,313 $ 98.91 % 3,807 $ 5,947,575 $ 98.97 % 2019-2020 5,588,352 5,672,610 98.51 5,345 5,593,697 98.61 2018-2019 5,283,191 5,331,918 99.09 3,785 5,286,976 99.16 2017-2018 5,019,360 5,065,306 99.09 5,290 5,024,650 99.20 2016-2017 4,771,416 4,816,554 99.06 5,426 4,776,842 99.18 2015-2016 4,449,392 4,487,604 99.15 4,285 4,453,677 99.24 2014-2015 4,165,840 4,216,164 98.81 4,230 4,170,070 98.91 2013-2014 3,999,623 4,046,271 98.85 7,804 4,007,427 99.04 2012-2013 3,732,226 3,779,401 98.75 1,785 3,734,011 98.80 2011-2012 3,586,085 3,646,327 98.35 1,267 3,587,352 98.38 Note:
(1) Article XIII-A of the Constitution of the state of California adopted by the electorate in June 1978, precludes the City from a local property tax levy. All general-purpose property taxes are levied by the County and allocated to other governmental entities on a predetermined formula.
158 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

RATIO OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(116)
Fiscal Certificates of Capital Revenue Certificates of Capital Year Participation Leases Loans Notes Total Bonds Participation Leases Notes Total 2020-2021 - $ - $ 17,602,114 $ - $ 17,602,114 $ - $ - $ - $ 6,233,225 $ 6,233,225 $ 2019-2020 - - 18,084,967 - 18,084,967 - - - 6,626,345 6,626,345 2018-2019 - 28,734 18,556,021 - 18,584,755 - - - 7,009,468 7,009,468 2017-2018 - 56,704 17,419,394 - 17,476,098 - - - 6,037,965 6,037,965 2016-2017 - 99,707 6,444,870 - 6,544,577 - - - 4,667,547 4,667,547 2015-2016 - - 2,845,256 - 2,845,256 - - - 4,566,055 4,566,055 2014-2015 - - 2,273,106 - 2,273,106 - 440,000 - 4,771,694 5,211,694 2013-2014 170,000 - 704,000 - 874,000 - 855,000 - 4,971,536 5,826,536 2012-2013 335,000 - - - 335,000 - 1,250,000 - 5,168,672 6,418,672 2011-2012 490,000 - - - 490,000 - 1,625,000 - 4,577,583 6,202,583 Governmental Activities Business-type Activities
Percent of
Total Taxable Taxable Debt Percent of
Fiscal Outstanding Assessed Assessed Per Personal Personal Year Population (1) Debt Value Value Capita Income Income 2020-2021 4,258 23,835,339 $ 4,239,256,907 $ 0.56 % 5,598 $ 440,525 $ 1.85 % 2019-2020 4,268 24,711,312 3,995,693,508 0.62 5,790 429,278 1.74 2018-2019 4,451 25,594,223 3,572,859,349 0.72 5,750 491,975 1.92 2017-2018 4,322 23,514,063 3,395,888,687 0.69 5,441 440,691 1.87 2016-2017 4,297 11,212,124 3,176,435,084 0.35 2,609 397,110 3.54 2015-2016 4,274 7,411,311 2,986,826,078 0.25 1,734 372,669 5.03 2014-2015 4,221 7,484,800 2,873,455,956 0.26 1,773 423,864 5.66 2013-2014 4,234 6,700,536 2,689,757,322 0.25 1,583 353,818 5.28 2012-2013 4,199 6,753,672 2,621,983,721 0.26 1,608 344,910 5.11 2011-2012 4,194 6,692,583 2,553,693,794 0.26 1,596 338,707 5.06 Notes:
(1) The Fiscal Year 2010-2011 amount was adjusted to the 2010 Census results. 159 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

PLEDGED-REVENUE COVERAGE

LAST TEN FISCAL YEARS
(117)
Net Total
Fiscal Operating Available Debt Percent
Year Revenue (1) Expenses (1) Revenue Principal Interest Principal Interest Service Coverage 2020-2021 8,541,377 $ 7,807,031 $ 734,346 $ 237,236 $ 106,781 $ - $ - $ 344,017 $ 213.46 2019-2020 7,600,466 8,161,847 (561,381) 230,550 113,467 - - 344,017 (163.18) 2018-2019 7,158,048 7,113,464 44,584 224,052 119,965 - - 344,017 12.96 2017-2018 7,089,160 6,818,187 270,973 217,738 126,279 - - 344,017 78.77 2016-2017 6,850,876 6,349,180 501,696 211,601 132,416 - - 344,017 145.83 2015-2016 6,657,471 5,875,267 782,204 205,638 138,379 - - 344,017 227.37 2014-2015 6,910,807 6,406,810 503,997 199,848 144,169 415,000 32,375 791,392 63.68 2013-2014 6,310,318 5,943,962 366,356 197,136 146,881 395,000 191,109 930,126 39.39 2012-2013 6,140,771 5,769,776 370,995 - - 375,000 191,020 566,020 65.54 2011-2012 5,764,873 5,365,943 398,930 - - 355,000 204,203 559,203 71.34 Notes:
(1) Revenue and expenses exclude financing sources/(uses). (2) Details regarding the City's outstanding debt can be found in the Notes to the Basic Financial Statements.

Business-type Activities
Debt Service (2)
Clean Water Certificates of
State Revolving Participation
160 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

RATIO OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS
(118)
Percent of
Taxable Taxable Debt Personal Percent of
Fiscal Certificates of Assessed Assessed Per Income (2) Personal Year Population (1) Participation Value Value Capita (in Thousands) Income 2020-2021 4,258 - $ 4,239,256,907 $ - % - $ 440,525 $ - % 2019-2020 4,268 - 3,995,693,508 - - 429,278 -
2018-2019 4,451 - 3,759,707,107 - - 491,975 -
2017-2018 4,322 - 3,572,859,349 - - 440,691 -
2016-2017 4,297 - 3,395,888,687 - - 397,110 -
2015-2016 4,274 - 3,176,435,084 - - 372,669 -
2014-2015 4,221 - 2,986,826,078 - - 423,864 -
2013-2014 4,234 170,000 2,873,455,956 0.01 40 353,818 208.13 2012-2013 4,199 335,000 2,689,757,322 0.01 80 344,910 102.96 2011-2012 4,194 490,000 2,621,983,721 0.02 117 338,707 69.12 Outstanding General Bonded Debt
161 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

DIRECT AND OVERLAPPING BONDED DEBT
JUNE 30, 2021
(119)
Fiscal Year 2020-2021 Assessed Valuation $4,239,256,907 Fiscal Year 2020-2021 Population 4,258
Percent City's Share
Total Debt Applicable of Debt
June 30, 2021 to City(1) June 30, 2021
Overlapping Tax and Assessment Debt:

San Diego County General Obligations $ 211,585,000 0.724 1,531,875 $ San Diego County Pension Obligations 400,125,000 0.724 2,896,905 San Diego County Superintendent of Schools:

General Fund Obligations 8,585,000 0.724 62,155
San Dieguito Union High School District:

General Fund Obligations 12,730,000 5.832 742,414
Total Overlapping General Fund Debt 633,025,000 5,233,349 Direct Debt and Overlapping Tax and Assessment Debt:

Direct Debt:

City of Del Mar 17,602,114 100.000 17,602,114
Subtotal Direct Debt 17,602,114 17,602,114
Overlapping Tax and Assessment Debt:

Metropolitan Water District 26,830,000 0.130 34,879
Mira Costa Community College District 306,265,000 3.536 10,829,530 San Dieguito Union High School District 431,325,000 5.832 25,154,874 Del Mar Union School District 50,060,000 20.130 10,077,078 Solana Beach School District School
Facilities Improvements District 93,095,000 0.473 440,339 City of Del Mar 1915 Act Bonds 240,000 100.000 240,000
Subtotal Overlapping Tax and Assessment Debt 907,815,000 46,776,700 Total Direct and Overlapping Tax and Assessment Debt 925,417,114 64,378,814 Subtotal Overlapping Tax 1,540,840,000 52,010,049
Combined Total Debt 1,558,442,114 $ 69,612,163 $
(1) Percentage of overlapping agency's assessed valuation located within the boundaries of the City Ratios to Fiscal Year 2020-2021 Assessed Valuation: Per Capita City Direct Debt 0.42% $ 4,134
Total Overlapping Tax and Assessment Debt 1.52% 15,119
Combined Total Debt 1.64% 16,349
State School Building Aid Repayable as of June 30, 2021 - $ 162 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

SCHEDULE OF LEGAL DEBT MARGIN

LAST TEN FISCAL YEARS
(120)
2011-2012 2012-2013 2013-2014 2014-2015
Assessed Valuation 2,621,983,721 $ 2,689,757,322 $ 2,873,455,956 $ 2,986,826,078 $ Conversion Percentage 25 % 25 % 25 % 25 %
Adjusted Assessed Valuation 655,495,930 $ 672,439,331 $ 718,363,989 $ 746,706,520 $ Debt Limit Percentage 15 % 15 % 15 % 15 %
Debt Limit 98,324,390 $ 100,865,900 $ 107,754,598 $ 112,005,978 $ Total Net Debt Applicable to Limit:

General Obligation Bonds 490,000 335,000 170,000 -
Legal Debt Margin 97,834,390 $ 100,530,900 $ 107,584,598 $ 112,005,978 $ Total Debt Applicable to the Limit
as a Percentage of Debt Limit 0.50 % 0.33 % 0.16 % - %
Note:

Fiscal Year
(1) Section 43605 of the Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation.

However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with Fiscal Year 1981- 1982, 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 for each fiscal year from current full valuation perspective to the 25% level that was in effect at the time the legal debt margin was enacted by the State of California for local governments located within the State.
163 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

SCHEDULE OF LEGAL DEBT MARGIN (CONTINUED)

LAST TEN FISCAL YEARS
(121)
2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 $ 3,395,888,687 3,176,435,084 $ 3,572,849,349 $ 3,759,707,107 $ 3,759,707,107 $ 4,239,256,907 $ 25 % 25 % 25 % 25 % 25 % 25 %
$ 848,972,172 794,108,771 $ 893,212,337 $ 939,926,777 $ 939,926,777 $ 1,059,814,227 $ 15 % 15 % 15 % 15 % 15 % 15 %
$ 127,345,826 119,116,316 $ 133,981,851 $ 140,989,017 $ 140,989,017 $ 158,972,134 $ - - - - - -
$ 127,345,826 119,116,316 $ 133,981,851 $ 140,989,017 $ 140,989,017 $ 158,972,134 $ -% -% -% -% -% -%
Fiscal Year
164 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
(122)
City of Average Average
Del Mar Annual Annual Personal Personal
Housing City of Percent County of Percent Income Per Income Per Year Units (1) Del Mar Change San Diego Change (in Thousands) Capita (in Thousands) Capita 2021 2,646 (0.23)% 3,331,279 4,258 (0.36)% 440,525 $ 103,458 $ - $ - $ 2020 2,613 (4.11) 3,343,355 4,268 (0.25) 429,278 100,580 220,825,596 66,266 2019 2,615 2.98 3,351,786 4,451 0.42 491,975 110,531 202,642,332 60,845 2018 2,612 0.58 3,337,685 4,322 0.65 440,691 101,964 195,679,529 58,719 2017 2,611 0.54 3,316,192 4,297 0.84 397,110 92,415 193,296,405 58,289 2016 2,542 1.26 3,288,612 4,274 1.89 372,669 87,194 183,032,418 55,656 2015 2,605 (0.31) 3,227,496 4,221 1.04 423,864 100,418 170,114,527 52,708 2014 2,605 0.83 3,194,362 4,234 1.40 553,818 83,566 167,931,419 52,571 2013 2,637 0.12 3,150,178 4,199 0.21 344,910 82,141 165,008,428 52,381 2012 2,637 (10.00) 3,143,429 4,194 0.79 338,707 80,760 160,914,306 51,191 Note:
* This information is not available.

Source:
(1) SANDAG
(2) State of California, Finance Department
(3) United States Bureau of Economic Analysis; HDL, Coren & Cone Demographic and Economic Statistics Population (2) Personal Income(3)
City of Del Mar County of San Diego
165 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

DEMOGRAPHIC AND ECONOMIC STATISTICS (CONTINUED)

LAST TEN CALENDAR YEARS
(123)
Enrollment
Del Mar
Labor Unemployment Labor Unemployment Union
Force Employed Rate Force Employed Rate Elementary (5)
1,900 2,000 3.60 % 1,517,500 1,415,400 6.70 % 3,853
2,200 2,300 5.60 1,610,900 1,486,400 7.70 4,132
2,500 2,500 1.50 1,609,400 1,563,600 2.80 4,263
2,500 2,500 2.20 1,620,100 1,568,300 3.20 4,453
2,700 2,700 0.03 1,584,700 1,533,200 3.30 4,413
2,700 2,700 0.04 1,597,600 1,528,200 4.30 4,334
2,600 2,600 0.50 1,572,600 1,496,700 4.80 4,399
3,000 3,100 3.10 1,588,500 1,491,600 6.10 4,376
3,000 3,100 3.80 1,611,200 1,492,300 7.40 4,384
2,900 3,100 4.90 1,593,800 1,441,700 9.50 4,387
Source:
(4) State of California, Employment Development Department (EDD) (5) State of California, Department of Education, Educational Demographics Unit City of Del Mar County of San Diego
Employment (4)
166 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

TOP TEN PRINCIPAL EMPLOYERS

CURRENT YEAR AND PRIOR YEAR
(124)
Number Percent of Number Percent of
Business of Total of Total
Employer (1) Type Employees Employment Employees Employment Del Mar Thoroughbred Club (3) Horse Racing Club (3)95-656 18.60% (3)45 - 372 16.17 % L'Auberge Del Mar Resort Spa Resorts 176 8.80 105 4.57
Jake's Del Mar Restaurant 113 5.63 40 1.74
Monarch Ocean Pub Restaurant 88 4.40 - -
Brigantine Seafood Restaurant Restaurant (3)85 4.65 89-93 4.04 Poseidon Restaurant Restaurant 65 3.25 63 2.74
Il Fornaio Restaurant 60 3.00 55 2.39
Pacifica Del Mar Private School 65 3.25 50 2.17
Tamarindo Restaurant 55 2.75 - -
Sbicca An American Bistro Restaurant 48 2.40 30 1.30
Total Top Ten Employers 1,022 1,246
Total City Employment (2) 2,300 2,000
Notes:
(1) Represents non-governmental employers.
2021 2020
(2) Total City employment provided by the State Employment Development Department (EDD) - Labor Market Information Division.
(3) Total number of employees fluctuates due to seasonal employees hired during the Horse Racing season. Calculation was based on the highest number from the range.
167 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

FULL-TIME EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
(125)
Function 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 General Government 19 19 19 20 21 22 24 25 26 25
Public Safety (1) 17 17 16 16 16 16 15 15 15 14
Public Works 13 13 13 13 13 13 14 14 15 14
Parks and Recreation 5555555554
Total 54 54 53 54 55 56 58 59 61 57
Note:
(1) Police services are provided by the County of San Diego, Sheriff's Department. 168 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
(126)
Function 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 Police:

Arrests (1) N/A N/A N/A N/A N/A N/A N/A N/A N/A
Parking Citations Issued 19,060 18,000 15,694 11,818 13,074 19,672 18,777 18,097 28,480 Fire:

Emergency Calls 1,112 1,130 1,468 1,309 806 881 849 1,033 861 Inspections 473 598 459 394 93 62 285 394 443
Public Works:

Street Resurfacing (Miles) 0.50 1.00 1.00 1.00 1.50 2.00 2.00 2.00 Street Slurry (Miles) 0.50 - - - - - - - -
Parks and Recreation:

Number of Recreational Classes 500 468 347 485 222 287 281 192 - Number of Facility Rentals 115 185 175 143 93 186 216 139 26 Water:

New Construction - - - - - - - - -
Average Daily Consumption 1,024 969 858 803 838 962 859 852 934 (in Thousands of Gallons)
Sewer:

New Construction - - - - - - - - -
Average Daily Sewage Treatment 540 520 534 499 523 448 421 444 369 (in Thousands of Gallons)
Notes:
(1) Police services are provided by the County of San Diego, Sheriff's Department. 169 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
(127)
Function 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-18 2018-2019 2019-2020 2020-2021 Fire:

Stations 1 1 1 1 1 1 1 1 1 1
Public Works:

Streets (Miles) 22.5 22.5 22.5 22.5 22.5 22.5 22.5 22.5 22.5 22.5 Street Lights 74 74 74 74 74 74 81 81 81 81
Traffic Signals 7 7 7 7 7 7 7 7 7 7
Parks and Recreation:

Parks 5 5 5 5 5 5 5 5 5 5
Community Centers 1 1 1 1 1 1 1 1 1 1
Water:

Water Mains (Miles)(1) 29.87 29.87 29.87 29.87 29.87 29.87 29.87 29.87 29.87 29.87 Maximum Daily Capacity 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 1,250 (Thousands of Gallons)
Sewer/Storm Drains:

Sanitary Sewers (Miles)(1) 24.98 24.98 24.98 24.98 24.98 24.98 24.98 24.98 24.98 24.98 Storm Drainage (Miles) 13.59 13.59 13.59 13.70 13.70 13.70 13.70 13.70 13.70 13.70 Maximum Daily Treatment
Capacity (Thousands
of Gallons) 877 877 877 877 877 877 877 877 877 877
Note:
(1) The unit of measure has been updated using the GIS system which provides a more accurate calculation.

Fiscal Year
170 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA

MISCELLANEOUS STATISTICS
JUNE 30, 2021
(128)
Date of Incorporation July 15, 1959
Form of Government Council/Manager
Area 2 square miles
Climate:

Average Annual High Temperature 70.42o F
Average Annual Low Temperature 57.33o F
Annual Precipitation 11.5 inches
Fire Protection:

Station 1
Firefighters and Officers 9
Fire Incident Responses 20
Emergency Medical Incident Responses 491
Public Service Calls 69
Fire Inspections 443
Culture and Leisure:

Parks 5
Park Areas 9.69 acres
Passive/Active Recreation Areas 300.38 acres
Including Fairground/Racetrack 200 acres
Miles of Beaches 2.2 miles
Number of Beach Attendances 2,637,441
Baseball Field 1
Tennis Courts 2
Library 1
Library Inventory 16
Hotels:

Major Hotel Rooms 355
Average Percent Occupancy 45%
Average Room Rate $257
Average Group Size Per Stay 2.5 persons*
Average Length of Stay 3.5 days*
* Information from San Diego County Profile
Education:

Private School 1
School District 1
Street Miles 22.5 miles
Street Lights 81
Water System:

Service Connection 1,888 meters
Fire Hydrants 350
Sanitary Sewer Lines 24.98 miles
171 March 7, 2022 Item 07
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CliftonLarsonAllen LLP
CLAconnect.com
INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Honorable Mayor and
Members of the City Council
of the City of Del Mar
Del Mar, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Del Mar (the City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon dated February 21, 2022.

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

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

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
172 March 7, 2022 Item 07
City Council
City of Del Mar
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

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

CliftonLarsonAllen LLP
Irvine California
February 21, 2022
173 March 7, 2022 Item 07

CITY OF DEL MAR, CALIFORNIA
APPROPRIATIONS LIMIT WORKSHEET NO. 6
INDEPENDENT ACCOUNTANTS’ REPORT

ON AGREED-UPON PROCEDURES APPLIED TO
APPROPRIATIONS LIMIT WORKSHEET NO. 6
YEAR ENDED JUNE 30, 2021
174 March 7, 2022 Item 07
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CliftonLarsonAllen LLP
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INDEPENDENT ACCOUNTANTS’ REPORT

ON APPLYING AGREED-UPON PROCEDURES
Honorable City Council
of the City of Del Mar
Del Mar, California
We have performed the procedures enumerated below on the accompanying Appropriations Limit Worksheet No. 6 of the City of Del Mar, California, (the “City”) for the year ended June 30, 2021. The City’s management is responsible for the Appropriations Limit Worksheet No. 6.

The City and the League of California Cities (as presented in the League publication entitled "Article XIII-B Appropriations Limit Uniform Guidelines") have agreed to and acknowledged that the procedures performed are appropriate to meet the intended purpose of meeting the requirements of Section 1.5 of Article XIII-B of the California Constitution. This report may not be suitable for any other purpose. The procedures performed may not address all the items of interest to a user of this report and may not meet the needs of all users of this report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes.

The procedures and the associated findings are as follows:
a. We obtained the completed Appropriations Limit Worksheet No. 6 for the year ended June 30, 2021, and compared the limit and annual adjustment factors included in that worksheet to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheet to those that were selected by a recorded vote of the City Council.

No exceptions were noted as a result of our performing this procedure. b. For the Appropriations Limit Worksheet No. 6, we added last year’s limit to the total adjustments, and compared the resulting amount to this year’s limit. We also recalculated the adjustment factor and the adjustment for inflation and population, and compared the results to the amounts on Worksheet No. 6.

No exceptions were noted as a result of our performing this procedure. c. We compared the prior year appropriations limit presented in the accompanying Appropriations Limit Worksheet No. 6 to the prior year appropriations limit adopted by the City Council for the prior year.

No exceptions were noted as a result of our performing this procedure. 175 March 7, 2022 Item 07
City Council
City of Del Mar
Del Mar, California
(3)
We were engaged by the City to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants. We were not engaged to and did not conduct an examination or review engagement, the objective of which would be the expression of an opinion or conclusion, respectively, on the accompanying Appropriations Limit Worksheet No. 6. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

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

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

CliftonLarsonAllen LLP
Irvine, California
February 21, 2022
176 March 7, 2022 Item 07

CITY OF DEL MAR
APPROPRIATIONS LIMIT WORKSHEET NO. 6
YEAR ENDED JUNE 30, 2021
See accompanying Notes to Appropriations Limit Worksheet No. 6. (4)
Appropriations Limit for Fiscal Year Ended June 30, 2020 (see Note 2) 28,520,239 $ Adjustments Factors for the Fiscal Year Ended June 30, 2021 (see Note 2):

Inflation Population
Factor Factor Combined
(Note 3) (Note 4) Factor

1.0373000 1.0027000 1.0401007 x 0.04010071
Adjustment for Inflation and Population 1,143,682
Other Adjustments (Note 5) -
Total Adjustments 1,143,682
Appropriations Limit for Fiscal Year Ended June 30, 2021 29,663,921 $ 177 March 7, 2022 Item 07

CITY OF DEL MAR
NOTES TO APPROPRIATIONS LIMIT WORKSHEET NO. 6
JUNE 30, 2021
(5)
NOTE 1 PURPOSE OF LIMITED PROCEDURES REVIEW
Under Article XIIIB of the California Constitution (the Gann Spending Limitation Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section

1.5 of Article XIIIB, the annual calculation of the appropriations limit is subject to a limited procedures review in connection with the annual audit.

NOTE 2 METHOD OF CALCULATION
Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July 1, 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed at Notes 3 and 4 below.

NOTE 3 INFLATION FACTORS
A California governmental agency may adjust its appropriations limit by either the percentage change in California per capita personal income from the preceding year (which is supplied by the State Department of Finance), or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City of Del Mar (the “City”) for fiscal year 2020-2021 represents the percentage change in California per capita personal income from the preceding year.

NOTE 4 POPULATION FACTORS
A California governmental agency may adjust its appropriations limit by either the annual percentage change of the jurisdiction’s own population, or the annual percentage change in population in the County where the jurisdiction is located. The factor adopted by the City for fiscal year 2020-2021 represents the annual percentage change in the population in the County where the City is located.

NOTE 5 OTHER ADJUSTMENTS
A California governmental agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another governmental agency or private entity. The City had no such adjustments for the year ended June 30, 2021.
178 March 7, 2022 Item 07
179 March 7, 2022 Item 07

BEGINNING ENDING

BALANCE O & M CIP BALANCE
JUL 1, 2020 REVENUES EXPENDITURES EXPENDITURES IN (OUT) JUN 30, 2021 ACTUAL FY 2021 FY 2021 FY 2021 FY 2021 FY 2021 ACTUAL
CONTINGENCY 31.19% 16, 2,498,712 (12,301,802) 354,277 - (2,3 235,467 $ 4,408,817 77,837)RESTRICTED: SELF-INSURANCE 245,553 ( 682,619 - 437,151) 8,979 - 500,000DESIGNATED:

ENCUMBRANCES 5,348 - (5 - ,348) - - -COASTAL PARKING REVENUE - 81,900 ( - 81,900) - - -SIDEWALK CAFÉ 5,300 - (5 - ,300) - - - COVID ECONOMIC UNCERTAINTY RESERVE 213,808 - - - 13,192 ( 200,000 27,000) PENSION RESERVE 1,220,200 - - - - - 1,220,200LEAVE LIABILITY 80,000 - ( - 179,355) - 199,355 100,000EQUIPMENT REPLACEMENT 724,850 - ( - 55,423) 55,423 - 724,850 TOTAL GENERAL FUND 4,988,471 17, (13,066,279) 124,096 - (2,4 512,416 7,153,867 04,837) 2, 1,164,831 - 339,901 ( - 202,171) - 3,302,561
53,167 11,801 ( - 30,316) - ( - 34,652)
79,664 - - - - - 79,664
23,253 ( 101,400 - 433,894) - 309,241 -
3,570 ( 160,921 - 732,837) - 568,346 -

DESIGNATED
ENCUMBRANCES 105,180 - - (84,595) 6,043 - 26,628CAPITAL IMPROVEMENT PROJECTS - - - - - - -OPEN SPACE ACQUISITION 126,388 - ( - 40,000) - - 86,388TREE RESERVE 33,157 1,110 - - - - 34,267 TOTAL OPEN SPACE FUND 268,295 ( 162,031 (84,595) 772,837) - 574,389 147,283 - - 101,850 - - (1 - 01,850)
44,186 7,051 ( - 86,302) 50,501 - 15,436

MEASURE QEMERGENCY EXPENDITURE FUNDROAD MAINTENANCE REHABILITATION ACCTGAS TAX FUNDOPEN SPACE FUNDSUPPLEMENTAL LAW ENFORCEMENT FUNDREGIONAL COMMUNICATIONS FUNDGENERAL FUND

CITY OF DEL MAR

FINAL RESERVE SUMMARY REPORT
FISCAL YEAR 2020-2021

TRANSFERS
180 March 7, 2022 Item 07

BEGINNING ENDING

BALANCE O & M CIP BALANCE
JUL 1, 2020 REVENUES EXPENDITURES EXPENDITURES IN (OUT) JUN 30, 2021 ACTUAL FY 2021 FY 2021 FY 2021 FY 2021 FY 2021 ACTUAL

CITY OF DEL MAR

FINAL RESERVE SUMMARY REPORT
FISCAL YEAR 2020-2021

TRANSFERS
69,787 80,179 ( - 29,309) - - 120,657
51,620 285,166 ( - 87,035) - - 249,751
51,475 256,264 ( - 88,477) - - 219,262 44,183 13,759 (6 - ,949) - 10,993 (40,000) - - 144,140 (298,818) - 154,678 -
ENCUMBRANCES 278,064 - - - 30,306 - 308,370RESERVE FOR CAPITAL - - - DEBT SERVICE - - ( - 906,996) - 906,996 -
TOTAL CAPITAL IMPROVEMENT FUND 278,064 ( 144,140 ( 906,996) 1, 298,818) - 091,980 308,370 79,100 - 147,170 ( 74,777 297,055) - 3,992
75,050 19,864 ( - 59,859) - ( 3,090 31,965)
2,715 7,650 - - - - 10,365
438,948 ( 240,157 - 286,439) - - 392,666
NET POSITION 672,899 4, (3,422,790) 295,948 - (3 126,178 1,331,985 40,250)RESTRICTED:

CONTRIBUTED CAPITAL 4,028,272 - - - - - 4,028,272

DESIGNATED

ENCUMBRANCES - - - - - - -
SELF-INSURANCE 50,000 - - - - - 50,000RATE STABILIZATION 200,000 - - - - - 200,000 CAPTIAL REPLACEMENT 197,621 - - - - 197,621
NET PENSION LIABILITY (1,409,823) - - - - (1 (1,5 26,178) 36,001)PENSION RESERVE 500,000 - - - - 140,250 640,250 OPERATING RESERVE 475,000 - - - - - 475,000
EQUIPMENT REPLACEMENT 200,000 - - - - 200,000 400,000UTILITY PLANT IN SERVICE 7,448,196 - ( - 365,541) - - 7,082,655 TOTAL WATER FUND 12,362,165 4,295,948 (3,788,331) - (4 466,428 12,869,782 66,428) SPECIAL PROJECT FUNDTRANSNET FUNDRTCIPWORKERS' COMPENSATION FUNDWATER FUNDCAPITAL IMPROVEMENT FUNDGRANTS FUNDHOUSING FUNDAB 939 FUNDPEG FEE FUND 181 March 7, 2022 Item 07

BEGINNING ENDING

BALANCE O & M CIP BALANCE
JUL 1, 2020 REVENUES EXPENDITURES EXPENDITURES IN (OUT) JUN 30, 2021 ACTUAL FY 2021 FY 2021 FY 2021 FY 2021 FY 2021 ACTUAL

CITY OF DEL MAR

FINAL RESERVE SUMMARY REPORT
FISCAL YEAR 2020-2021

TRANSFERS
NET POSITION - ( 622,287 - 494,220) (5 122,974 ,093)
-

DESIGNATED -
UTILITY PLANT IN SERVICE 20,000 20,000
ENCUMBRANCES 67,629 - (20,832) 5,093 51,890CAPITAL REPLACEMENT - - - TOTAL CLEAN WATER FUND 87,629 ( 622,287 (20,832) 494,220) 5,093 (5 194,864 ,093) NET POSITION 252,957 3, (3,914,153) 682,170 - (3 582,627 282,127 21,474) -

RESTRICTED
IBANK RESERVE 228,828 - - - - - 228,828
CONTRIBUTED CAPITAL 650,814 - - - - - 650,814LOAN RESERVE-STATE REVOLVING 332,979 - - - - - 332,979

DESIGNATED

ENCUMBRANCES - - - - - - -
SELF-INSURANCE 50,000 - - - - - 50,000CAPITAL REPLACEMENT 287,152 - - (16,368) - (2 - 70,784) NET PENSION LIABILITY (1,417,285) - - - - (1 (1,5 26,843) 44,128)PENSION RESERVE 520,000 - - - - 148,500 668,500OPERATING RESERVE 385,000 - - - - (1 200,000 85,000)EQUIPMENT REPLACEMENT 40,550 - ( - 113,524) - 172,974 100,000UTILITY PLANT IN SERVICE 8,252,042 - - 396,371 - - 8,648,413RATE STABILIZATION 200,000 - - - - - 200,000 TOTAL WASTEWATER FUND 9,783,037 3, (3,631,306) 682,170 (16,368) (9 904,101 9,817,533 04,101) TOTAL ENTERPRISE FUNDS 22,232,831 8,600,405 (7,913,857) (37,200) 1, (1,3 375,622 22,882,179 75,622)TOTAL - ALL FUNDS 30,155,527 29,432,997 (23,768,549) ( 3, 919,839) (3,9 988,926 34,900,136 88,926)

WASTEWATER FUNDCLEANWATER FUND
182 March 7, 2022 Item 07
ACTUAL %

ACTUAL ACTUAL FINAL REVENUE RECV'D

REVENUE REVENUE BUDGET (AUDITED)
SOURCE OF FUNDS 2018-2019 FY 2019-20 FY 2020-21 FY 2020-21 FY 2020-21

GENERAL FUND
TAXES
PROPERTY TAX 5,983,399 5,662,270 6,284,250 6, 384,954 101.6% VLF IN LIEU OF PROPERTY TAX 603,682 641,659 665,520 680,800 102.3% SALES AND USE TAX 1,472,389 2,208,416 988,000 1, 147,970 116.2% TRANSIENT OCCUPANCY TAX 2,300,504 2,982,510 1,500,000 1, 792,090 119.5% FRANCHISE TAX 424,930 390,482 396,200 82.0% 324,805
BUSINESS LICENSE TAX 243,198 235,557 220,000 229,533 104.3% REAL PROPERTY TRANSFER TAX 202,674 160,983 150,000 220,962 147.3% TOTAL 11,184,973 12,327,680 10,203,970 10,781,114 105.7%

LICENSES & PERMITS
LICENSES & PERMITS 5,778 21,786 7,000 10,096 144.2%
JUNIOR LIFEGUARD 39,651 52,103 - - 0.0%
PARKING PERMITS 29,465 34,755 32,000 21,315 66.6%
TOTAL 74,894 108,644 39,000 31,411 80.5%

FINES & FORFEITURES
MOVING VIOLATIONS/VEHICLE CODE FINES 78,894 90,538 85,000 47,019 55.3% PENALTIES 13,257 13,119 12,000 12,106 100.9%
PARKING VIOLATIONS 508,842 593,192 750,000 896,374 119.5% ADMINISTRATIVE CITATIONS 23,893 26,245 20,000 27,600 138.0% RED LIGHT ENFORCEMENT 88,651 102,118 55,000 65,903 119.8% TOTAL 740,862 797,887 1, 922,000 049,002 113.8%

REVENUE FROM USE OF ASSETS
INV EARN-GENERAL 229,761 57,830 135,117 48,673 84.2%
SIDEWALK CAFÉ USER FEE 5,194 10,424 5,300 2,940 55.5%
RENTAL INCOME 221,258 195,857 201,840 66.0% 133,190
PARKING METER INCOME 1,072,694 1,127,508 1,500,000 1, 600,304 106.7% TOTAL 1,408,862 1,588,951 1,764,970 1, 785,107 101.1%

REVENUE FROM OTHER AGENCIES
MOTOR VEHICLE LICENSE FEE 3,523 2,075 3,530 3,130 88.7% PUBLIC SAFETY AUGMENTATION FUND 81,422 83,629 83,900 85,433 101.8% HOMEOWNER EXEMPT 37,493 36,175 38,740 36,737 94.8%
FEDERAL GRANTS - - 21,345 21,325 99.9%
CORONAVIRUS RELIEF FUND (CSLFRF) - - - 400,000 0.0%
STATE MANDATED COST REIMB 6,583 215 3,000 - 0.0%
CONTRACT SOLANA BEACH 2,925 18,975 - - 0.0%
ON-TRACK PARIMUTUEL - - - - 0.0%
OFF-TRACK PARIMUTUEL 5,026 19,208 20 2,417 12085.0%
SOLID WASTE 30,369 29,807 27,540 23,853 86.6%
TOTAL 214,447 167,341 578,075 29.9% 172,895

CHARGES - PLANNING SERVICES
PLANNING SERVICES 424,409 364,135 477,070 505,823 106.0% ENGINEERING SERVICES 114,511 128,420 137,500 170,688 124.1% BUILDING SERVICES 323,506 325,694 453,000 504,913 111.5% TOTAL 862,426 1, 818,249 1, 067,570 181,424 110.7%

FINAL REPORT

CITY OF DEL MAR
FISCAL YEAR 2020-2021

REVENUE SUMMARIES
183 March 7, 2022 Item 07
ACTUAL %

ACTUAL ACTUAL FINAL REVENUE RECV'D

REVENUE REVENUE BUDGET (AUDITED)
SOURCE OF FUNDS 2018-2019 FY 2019-20 FY 2020-21 FY 2020-21 FY 2020-21

FINAL REPORT

CITY OF DEL MAR
FISCAL YEAR 2020-2021

REVENUE SUMMARIES

OTHER REVENUE SOURCES
PARKING IN-LIEU FEE - 5,253 1,550 1,554 100.3%
SALE OF PROPERTY - 18,723 - - 0.0%
ADMINISTRATIVE CHARGE 841,650 875,320 910,340 910,340 100.0% CONTRIBUTIONS 17,939 - 207,440 214,996 103.6%
ADMINISTRATIVE CHARGE-MEASURE Q - - 154,603 53,259 0.0% NUISANCE ALARM REIMBURSEMENT 2,250 1,855 2,000 - 0.0%
WC/STD REIMBURSEMENTS 37,640 45,409 - 39,320 0.0%
INSURANCE CLAIM REIMBURSEMENT 577,174 596,159 690,000 98.9% 682,619 EXPENDITURE REIMBURSEMENT 40,111 5,170 210,622 55,042 1064.6% MISCELLANEOUS 69,157 99,573 50,000 166,013 332.0%
TOTAL 1, 1,629,748 1, 963,690 2, 866,500 123,143 113.7% TOTAL GENERAL FUND 16,415,896 17,472,758 16,442,085 17, 124,096 104.1% MEASURE Q FUND 2, 2,863,314 2, 320,275 2, 000,000 339,901 117.0% EMERGENCY EXPENDITURE FUND 77,494 - 63,830 53,167 83.3% ROAD MAINTENANCE REHAB ACCOUNT 78,438 80,755 76,400 79,664 104.3% GAS TAX FUND 94,697 108,677 110,780 91.5% 101,400

OPEN SPACE FUND
TAXES 2,528 12,637 4,550 10,958 240.8%
LICENSE & PERMITS 361,938 5,950 136,545 30,275 508.8%
SURF CAMP PERMITS 49,167 - 65,000 79,519 122.3%
INVESTMENT EARNINGS 680 392 500 477 95.4%

STATE GRANTS -
ON-TRACK PARIMUTUEL - - - - 0.0%
OFF-TRACK PARIMUTUEL 3,351 7,427 10 1,611 16110.0%
CONTRIBUTIONS 15,000 23,230 40,000 - 0.0%
TREE MITIGATION 6,000 800 360 1,110 308.3%
MISCELLANEOUS 45,220 44,043 40,800 38,081 93.3%
OPEN SPACE FUND 450,467 258,491 157,170 162,031 103.1%
SUPPLEMENTAL LAW FUND 155,948 156,727 100,000 101,850 101.9% REGIONAL COMMUNICATION 48,001 44,702 45,000 44,186 98.2% GRANTS FUND 44,914 51,470 149,340 69,787 135.6%
HOUSING FUND 31,413 33,467 47,960 51,620 107.6%
AB 939 71,308 66,108 61,710 51,475 83.4%
PEG FEE FUND 45,479 47,946 48,740 44,183 90.7%
184 March 7, 2022 Item 07
ACTUAL %

ACTUAL ACTUAL FINAL REVENUE RECV'D

REVENUE REVENUE BUDGET (AUDITED)
SOURCE OF FUNDS 2018-2019 FY 2019-20 FY 2020-21 FY 2020-21 FY 2020-21

FINAL REPORT

CITY OF DEL MAR
FISCAL YEAR 2020-2021

REVENUE SUMMARIES

CAPITAL IMPROVEMENT FUND

STATE GRANTS - - -
FEDERAL GRANTS 702,155 656,854 460,350 29.3% 134,937
LOCAL GRANTS - - - 9,203 100.0%
INVESTMENT EARNINGS - 12,045 - - 0.0%
CONTRIBUTIONS - CIVIC CENTER PROJ - 2,500 - - 0.0%
LOAN PROCEEDS - 1,587,535 - - 0.0%
MISCELLANEOUS - 13,694 - - 0.0%
TOTAL CAPITAL IMPROVEMENT FUND 2,317,929 656,854 460,350 31.3% 144,140 TRANSNET FUND 196,019 214,328 75,050 205,000 36.6%
RTCIP FUND 2,658 2,565 - 2,715 100.0%
SPECIAL PROJECTS FUND - 225,000 65.4% 147,170
TOTAL GENERAL GOVERNMENTAL FUNDS 20,635,379 23,871,589 20,095,495 20, 592,435 102.5%

WORKERS' COMPENSATION FUND
SERVICE CHARGES 243,624 256,055 245,000 94.6% 231,771
INVESTMENT EARNINGS 17,462 18,429 5,000 8,386 167.7%
TOTAL WORKERS' COMPENSATION 262,053 273,517 250,000 96.1% 240,157

WATER UTILITY FUND
PENALTIES 7,275 9,846 10,500 9,556 91.0%
INVESTMENT EARNINGS 43,510 43,365 26,260 32,206 122.6%
WATER SALES 2, 1,911,396 2, 049,166 2, 163,820 394,497 110.7% READY TO SERVE CHARGE 1, 1,376,898 1, 533,110 1, 571,600 644,154 104.6% WATER CONNECTION FEES 54,145 10,480 6,980 45,413 650.6% BACKFLOW DEVICE FEES 18,255 16,698 16,400 19,463 118.7% MISCELLANEOUS 13,347 23,336 140,000 150,659 107.6%
TOTAL OPERATING REVENUE 3, 3,392,019 3, 718,808 4, 935,560 295,948 109.2%

CLEAN WATER PROGRAM
PENALTIES 1,545 2,182 1,000 1,803 180.3%
ADMINISTRATIVE CITATIONS 1,050 1,100 - - 0.0%
INVESTMENTS 244 846 500 1,445 289.0%
SERVICE CHARGE 545,045 559,754 560,000 619,039 110.5%
STATE GRANTS - - - - 0.0%
TOTAL CLEAN WATER PROGRAM 549,173 562,593 561,500 622,287 110.8% 185 March 7, 2022 Item 07
ACTUAL %

ACTUAL ACTUAL FINAL REVENUE RECV'D

REVENUE REVENUE BUDGET (AUDITED)
SOURCE OF FUNDS 2018-2019 FY 2019-20 FY 2020-21 FY 2020-21 FY 2020-21

FINAL REPORT

CITY OF DEL MAR
FISCAL YEAR 2020-2021

REVENUE SUMMARIES

WASTEWATER FUND
PENALTIES 6,611 9,281 10,000 8,320 83.2%
INVESTMENT EARNINGS 69,079 84,156 35,000 24,622 70.3%
SERVICE CHARGES 1, 1,473,337 1, 592,732 1, 605,600 677,265 104.5% USAGE CHARGES 1, 1,754,980 1, 647,404 1, 622,500 672,478 103.1% SEWER INCLUSION FEES 99,875 19,331 54,770 74,100 135.3% MISCELLANEOUS 16,197 - 20,000 225,385 1126.9%
TOTAL WASTEWATER FUND 3, 3,341,085 3, 431,898 3, 347,870 682,170 110.0% TOTAL ENTERPRISE FUNDS 7,713,299 7,282,277 7,844,930 8, 600,405 109.6% TOTAL ALL FUNDS 28,622,195 31,415,919 28,190,425 29,432,997 104.4% 186 March 7, 2022 Item 07
ACTUAL
ACTUAL ACTUAL FINAL EXP %

EXP EXP BUDGET (AUDITED) EXPENSED
DEPARTMENT 2018-2019 FY 2019-20 FY 2020-21 FY 2020-21 FY 2020-21

GENERAL FUND

GENERAL GOVERNMENT
CITY COUNCIL 71,543 84,861 22,740 22,669 99.7%
LEGAL SERVICES 1, 1,204,636 821, 047,924 952 69.3% 569,951 CITY MANAGER 1, 919,151 931, 049,395 390 971,234 104.3% HUMAN RESOURCES 169,371 186,593 228,350 83.9% 191,669
CITY CLERK 277,157 283,423 265,030 95.2% 252,426
INFORMATION SYSTEMS 432,371 457,784 412,990 95.1% 392,818 FINANCE SERVICES 761,238 718,672 707,794 715,272 101.1% RISK MANAGEMENT 196,567 328,290 360,000 416,184 115.6%
PLANNING SERVICES 1, 1,057,049 975, 102,865 730 97.8% 954,394 CODE ENFORCEMENT 91,341 124,211 119,420 129,128 108.1%
BUILDING SERVICES 309,959 287,513 306,900 423,102 137.9% TOTAL 5, 5,503,701 5, 658,213 5, 152,296 97.8% 038,847

PUBLIC SAFETY
LAW ENFORCEMENT 2, 2,409,932 2, 545,856 2, 656,180 99.7% 647,355 LIFEGUARD SERVICES 1, 1,066,742 1, 141,311 1, 102,845 125,842 102.1% PARKING ENFORCEMENT 817,868 689,980 850,850 87.2% 742,191 FIRE PROTECTION 2, 2,153,420 2, 328,292 2, 405,000 98.7% 373,982 HAZARDOUS WASTE MANAGEMENT 16,417 15,185 19,160 17,648 92.1% SOLID WASTE 2,845 4,060 2,500 4,207 168.3%
EMERGENCY PREPAREDNESS 2,878 2,010 7,355 1,318 17.9%
TOTAL 6, 6,469,217 7, 727,579 6, 043,890 98.1% 912,543

PUBLIC WORKS
ENGINEERING SERVICES 252,122 238,745 165,000 174,469 105.7% STORM WATER 79,060 104,104 91,273 101,482 89.9%
FACILITIES 168,492 196,114 205,330 238,954 116.4%
TOTAL 499,674 538,963 471,812 504,696 107.0%

NON-DEPARTMENTAL
COMMUNITY SUPPORT 313,847 302,690 247,635 274,573 110.9% TV STUDIO 87,902 96,470 101,613 80,574 83.5%
CITY MEMBERSHIPS 89,063 80,029 87,750 88,191 100.5%
CITY HALL - GENERAL 169,953 125,338 135,030 82.5% 111,432 TOTAL 651,731 618,704 566,885 97.9% 554,770

TOTAL GENERAL FUND BEFORE
EQUIPMENT REPLACEMENT 13,543,459 13,124,320 13,234,883 13,010,856 98.3% EQUIPMENT REPLACEMENT 75,149 137,517 54,800 55,423 101.1%

TOTAL GENERAL FUND INCLUDING
EQUIPMENT REPLACEMENT 13,618,608 13,261,837 13,289,683 13,066,279 98.3% MEASURE Q FUND 3, 4,102,363 805, 009,140 630 25.1% 202,171 EMERGENCY EXPENDITURE FUND - 30,000 65,693 30,316 101.1% ROAD MAINTENANCE REHAB ACCOUNT - - - - 0.0%

CITY OF DEL MAR

FINAL REPORT
FISCAL YEAR 2020-2021

EXPENDITURE SUMMARIES
187 March 7, 2022 Item 07
ACTUAL
ACTUAL ACTUAL FINAL EXP %

EXP EXP BUDGET (AUDITED) EXPENSED
DEPARTMENT 2018-2019 FY 2019-20 FY 2020-21 FY 2020-21 FY 2020-21

CITY OF DEL MAR

FINAL REPORT
FISCAL YEAR 2020-2021

EXPENDITURE SUMMARIES

GAS TAX FUND
STREET MAINTENANCE 129,560 175,828 175,093 75.8% 132,780 STREET LIGHTS/SIGNS 126,611 141,233 117,310 86.5% 101,422 STREET LANDSCAPING 250,266 242,857 179,240 199,692 111.4% TOTAL GAX TAX FUND 506,437 559,918 471,643 92.0% 433,894

OPEN SPACE FUND
POWERHOUSE OPERATIONS 384,173 373,555 299,800 80.1% 240,099 BEACH MAINTENANCE 302,391 312,320 328,770 94.4% 310,229 PARK MAINTENANCE 229,995 256,872 221,190 222,509 100.6% TOTAL OPEN SPACE FUND 916,559 942,747 849,760 90.9% 772,837 SUPPLEMENTAL LAW ENFORCEMENT 223,155 - 252,745 - 0.0%
REGIONAL COMMUNICATION FUND 79,273 72,217 85,010 86,302 101.5% GRANTS FUND 23,895 60,740 127,277 29,309 48.3%
HOUSING FUND 109,232 87,640 102,908 87,035 99.3%
AB 939 47,158 16,567 60,402 88,477 146.5%
PEG FEE FUND 5,780 5,663 6,300 6,949 110.3%
TOTAL GENERAL O&M FUNDS 18,811,247 19,237,925 15,746,808 14,803,569 94.0%

CAPITAL IMPROVEMENT FUNDS
OPEN SPACE CIP 101,557 188,091 84,595 134,980 62.7%
GENERAL FUND CIP 1, 4,064,322 1, 759,265 048,064 28.5% 298,818 DEBT SERVICE-CITY HALL 909,542 922,153 907,000 906,996 100.0% TRANSNET II CIP 196,019 193,004 59,859 205,000 29.2%
RTCIP FUND - - 0.0%
TOTAL CAPITAL IMPROVEMENT FUNDS 3, 5,271,440 2, 062,513 1, 295,044 58.8% 350,268 SPECIAL PROJECT FUND 228,213 840,409 384,500 77.3% 297,055 TOTAL GENERAL GOVERNMENTAL FUNDS 22,714,169 24,737,578 18,426,352 16,450,892 89.3% WORKERS' COMPENSATION FUND 275,226 354,414 288,750 99.2% 286,439 188 March 7, 2022 Item 07
ACTUAL
ACTUAL ACTUAL FINAL EXP %

EXP EXP BUDGET (AUDITED) EXPENSED
DEPARTMENT 2018-2019 FY 2019-20 FY 2020-21 FY 2020-21 FY 2020-21

CITY OF DEL MAR

FINAL REPORT
FISCAL YEAR 2020-2021

EXPENDITURE SUMMARIES

WATER FUND
GENERAL ADMINISTRATION 1, 1,655,909 1, 685,804 1, 711,170 739,596 101.7% RISK MANAGEMENT 65,813 52,789 94,604 103,500 91.4%
RAW WATER SUPPLY 1, 1,398,376 1, 440,942 1, 601,560 607,704 100.4% TREATMENT/DELIVERY 277,414 299,852 332,250 346,427 104.3% TOTAL WATER FUND O&M 3, 3,384,488 3, 492,411 3, 748,480 788,331 101.1% WATER CAP IMPROVEMENT 832,312 127,379 16,619 849,290 2.0% TOTAL WATER FUND 3, 4,216,800 4, 619,790 3, 597,770 82.8% 804,950

CLEAN WATER FUND
PLANNING 58,320 49,620 43,840 48,032 109.6%
CODE ENFORCEMENT 30,425 25,083 32,220 32,856 102.0%
CLEAN WATER MANAGEMENT 254,781 235,516 276,000 76.6% 211,351 PUBLIC WORKS 231,990 231,490 297,530 67.9% 201,981
TOTAL CLEAN WATER O & M 561,474 555,751 649,590 76.1% 494,220 CLEAN WATER CAP IMPROVEMENT - 76,890 62,607 20,832 27.1% TOTAL CLEAN WATER FUND 561,474 618,358 726,480 70.9% 515,052

WASTEWATER FUND
RISK MANAGEMENT 115,154 175,772 98,838 142,500 69.4%
WASTEWATER TRANSPORTATION 79,619 25,000 335,446 216,715 866.9% WASTEWATER TREATMENT 814,173 709,837 928,670 79.3% 736,349 DEBT SERVICE 573,560 565,740 570,960 98.9% 564,625
WASTEWATER PROGRAM 2, 2,188,037 2, 532,350 2, 363,260 85.3% 014,779 TOTAL WASTEWATER FUND O&M 4, 3,770,543 4, 319,145 3, 030,390 90.1% 631,306 WASTEWATER CAPITAL IMPROVEMENT 62,848 484,222 16,368 586,650 2.8% TOTAL WASTEWATER FUND 4, 4,254,765 4, 381,993 3, 617,040 79.0% 647,674 TOTAL ENTERPRISE FUNDS 8, 9,033,039 9, 620,141 7, 941,290 80.1% 967,676 TOTAL EXPENDITURES 34,045,843 31,688,724 28,656,392 24,705,007 86.2% 189 March 7, 2022 Item 07
City of Del Mar
General Fund Cash Flow ReportFiscal Year 2020-21
Amended First Second Third Difference Difference
Adopted Adopted Quarter Quarter Quarter Final Final vs Final vs FY 2021 FY 2021 FY 2021 FY 2021 FY 2021 FY 2021 Pre-COVID Amended Jun 2019 Jun 2020 Oct 2020 Feb 2021 May 2021 Mar 2022 (G=F-A) (H=F-B) (A) (B) (C) (D) (E) (F) (G) (H)
Total Revenue 14,725,510 18,218,680 14,930,105 15,321,260 16,442,085 17,124,096 (1,094,584) 2,398,586 Total Expenditures 12,797,000 13,511,970 13,131,543 13,258,828 13,286,838 13,066,279 (445,691) 269,279 TransfersMeasure Q Loan - (283,620) (283,620) (283,620) - - - 283,620 Emergency Fund - - - (45,631) (45,631) (34,652) (34,652) (34,652) Gas Tax 434,710 323,310 335,710 337,610 337,610 309,241 (125,469) (14,069) Open Space 584,180 584,200 587,200 669,820 669,820 568,346 (15,834) (15,854) SLESF 271,190 (100,000) (100,000) (100,000) (100,000) (101,850) (373,040) (1,850) Regional Comm 40,010 40,010 40,010 40,010 40,010 50,501 10,491 10,491 Housing Fund Transfer 347,000 - - - - - (347,000) -
Clean Water (non-CIP) - 15,620 15,620 88,090 88,090 - - (15,620) RMRA Reimb (77,940) (76,400) (76,400) (76,400) (76,400) - 77,940 76,400 PEG Fee Reimb (40,000) (40,000) (40,000) (40,000) (40,000) (40,000) - - Total Transfers 1,559,150 463,120 478,520 589,879 873,499 751,586 (807,564) 288,466 City Hall Debt 907,000 907,000 907,000 907,000 907,000 906,996 (4) (4) Cash Flow (before CIP & SP) 2,240,560 $ 558,390 $ 413,042 $ 565,553 $ 1,374,748 $ 2,399,235 $ 158,675 $ 1,840,845 $ Transfer to CIPOpen Space 210,000 - 50,000 90,000 49,000 6,043 (203,957) 6,043 General Fund 775,000 279,650 309,651 309,651 309,651 184,984 (590,016) (94,666) Clean Water 121,180 54,500 54,498 54,261 9,261 - (121,180) (54,500) Total CIP 1,106,180 334,150 414,149 453,912 367,912 191,027 (915,153) (143,123) Transfer to Special Projects 191,400 524,380 193,900 8,900 80,400 74,777 (449,603) (116,623) Cash Flow (after CIP & SP) 610,000 $ 32,840 $ (195,007) $ 102,741 $ 926,436 $ 2,133,431 $ 1,523,431 $ 2,100,591 $ Reserves
Contingency Reserves 3,403,025 1,926,237 2,087,673 2,317,331 3,285,181 4,408,817 1,005,792 2,482,580 Self-Insurance 400,000 410,000 421,553 421,553 421,553 500,000 100,000 90,000 Encumbrances - - - - - - - -
Economic Contingency - 125,000 300,000 200,000 200,000 200,000 200,000 75,000 Pension Reserves 2,292,694 1,220,200 1,220,200 1,220,200 1,220,200 1,220,200 (1,072,494) - Leave Liability 100,000 42,650 107,278 207,278 63,123 100,000 - 57,350 Equipment Replecement 546,995 724,850 724,850 724,850 724,850 724,850 177,855 - 4,448,937 6,742,714 4,861,554 5,091,212 5,914,907 7,153,867 411,153 2,704,930 190 March 7, 2022 Item 07
City of Del Mar
FY 2020-2021 General Fund Contingency
Preliminary vs Final Reconciliation Worksheet
Preliminary Final Staff Report
Results Results Difference Note
General Fund Contingency % 32.86% 31.19% ‐1.67%
Revenues $ 17,124,096 20,657,576 $ (3,533,480) $ (#1, #2) O&M Expenditures (13,066,279) (16,476,936) 3,410,657 (#1, #3) Transfer In/Out (1,892,421) (1,831,136) (61,285) (#4) Ending General Fund Contingency 4,408,817 4,592,925 (184,108) Total General Fund Balance 7,153,867 7,337,975 (184,108) 191 March 7, 2022 Item 07
City of Del Mar
Agenda Report
TO: Honorable Mayor and City Council Members
FROM: Monica Molina, Finance Manager/Treasurer
Ashley Jones, City Manager
DATE: March 7, 2022
SUBJECT: Fiscal Year 2021-22 Mid-Year Financial Report
REQUESTED ACTION/RECOMMENDATION:

Staff recommends that the City Council review the Fiscal Year (FY) 2021-22 Mid-Year Financial Report and: 1) Authorize revenue adjustments totaling $2,689,050, and expenditure adjustments totaling $473,490 as included in Exhibit A of Attachment A; and 2) Authorize the transfer of $100,000 to the Housing Reserve Fund from the General Fund Contingency.

DISCUSSION/ANALYSIS:

On June 21, 2021, the City Council approved the Fiscal Years 2021-22 and 2022-23 Operating and Capital Budget (Budget). At that time, the pandemic continued to have significant impacts on the City’s financial position, and although some economic recovery was expected over the next two years, revenues were not projected to reach pre-COVID levels during the two-year budget cycle. The Budget was developed with the goal of maintaining essential services to the community, and limiting operating, capital and special project expenditures, which are envisioned to be increased in a slow and gradual manner as additional revenues become available.

The Budget reflected an Operating and Capital Budget of $28.4 million in FY 2021-22 and a General Fund Contingency of 19.92% (73 days of operation) and included transfers of $250,000 to the Pension Reserve Fund, $100,000 to the Equipment Reserve Fund, $100,000 to the Housing Reserve Fund and the elimination of the COVID-19 Economic Uncertainty Reserve Fund of $200,000, which was transferred to the General Fund Contingency.

On November 1, 2021, staff presented the FY 2020-21 Preliminary Financial Report to the City Council, which indicated positive results. Based on those results, the City Council authorized additional allocations in FY 2021-22 from the General Fund Contingency totaling $822,500 to the Pension Reserve Fund, $178,350 to the Equipment Replacement Fund, and $100,000 to the Housing Reserve Fund. As reported in the FY 2020-21 Annual Comprehensive Financial Report and Audited Financial Results, a few changes were made to the preliminary report and the new FY 2020-21 ending balances are used as the new FY 2021-22 beginning fund balances, and are reflected in the Mid-Year Financial Summary Reports included as Attachment A.

After a thorough review of the mid-year financial data, which is discussed in detail below, staff is recommending increasing General Fund revenues by $1,581,100 and General Fund expenditures by $410,790, resulting in an adjusted June 30, 2022 General Fund Contingency of $4,325,043, which is a 28.12% contingency (103 days of operation).
1 March 7, 2022 Item 08
City Council Agenda Report
FY 2021-22 Mid-Year Financial Report
March 7, 2022

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Del Mar City CouncilMarch 7, 2022

Del Mar City Council
March 7, 2022