Del Mar City Council
April 17, 2023

Table of Contents
2023-4-17 Regular Meeting Agenda.pdf
Item 1 - WildCoast Presentation 2023-04-17.pdf
Item 2 - San Dieguito River Park JPA Presentation 2023-04-17.pdf Item 3 - FY22 - MQ citizen oversight committee report.pdf Item 4 - Minutes.pdf
Item 5 - List of Demands.pdf
Item 7 - RBSP3 MOU with SANDAG.pdf
Item 8 - Agreement for Citation Processing Services FINAL.pdf Item 9 - FY 22 Financial Audit Report.pdf
Item 10 - CC Study Final Report_FINAL PACKET.pdf
28 29
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Del Mar City Council Meeting Agenda
City of Del Mar, Town Hall
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.

Regular Meeting
Monday, April 17, 2023 at 4:30 PM
Public Participation/Comment: Members of the public can participate in City Council meetings remotely and in-person.

Anyone may address the City Council for up to three minutes, at the Mayor’s discretion, on items on the agenda. Members of the public wishing to speak on items not on the agenda may do so under Public Oral Communications. Agenda items may be addressed in any order at the discretion of the Mayor. When addressing the Council, please state your name for the record. Any electronic presentations must be received before 9 a.m. on the date of the Council meeting. No PowerPoint presentations can be loaded during the meeting.

In-Person Participation: Please submit a completed “Speaker Slip”, including the item number you wish to speak on, to the City Clerk prior to the Mayor announcing the agenda item. The forms are located near the door at the rear of the Meeting Room. When called to speak, please approach the podium and state your name for the record.

Remote Participation: Members of the public can participate in the meeting remotely using the Zoom link and/or dial-in information provided below. 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
Written Comments: Members of the public can participate in the meeting by submitting a written red dot comment via email to [email protected]. 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.

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 Del Mar City Hall and the Del Mar Library during their business hours.

Assistance for Persons with Disabilities: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Administrative Services Department at 1050 Camino del Mar or by calling (858) 755-9313.

Notification of at least 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Tracy Martinez
Mayor
Dan Quirk
Deputy Mayor
Dave Druker
Council Member
Terry Gaasterland
Council Member
Dwight Worden
Council Member
Ashley Jones
City Manager
Leslie E. Devaney
City Attorney
Nestor Machado
Acting City Clerk
Del Mar City Council Regular Meeting April 17, 2023
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
Each person wishing to speak before the City Council on any matter not on the agenda shall submit a “Speaker Slip” to the City Clerk or raise their hand in Zoom when Public Oral Communication is announced. Each speaker will have up to three (3) minutes to speak at the discretion of the Mayor and may be asked clarifying questions. Information received during Public Oral Communication may be received, placed on a future agenda, or referred to the City Manager by the City Council. State law generally precludes the City Council from discussing or acting upon any topic presented during oral communications that is not described on the posted agenda.

Note: there is a time limit of 30 minutes for this section of public communications and each speaker will be heard in the order of the submission of their speaker slip. Speakers who have turned in a speaker slip prior to the time oral communications was called on the agenda, but were not heard during the initial time period shall be called to speak at the end of the agenda.

V. CITY COUNCIL COMMENTS
VI. COMMUNITY ANNOUCEMENTS
VII. CITY MANAGER’S REPORT
VIII. PRESENTATIONS

1. Presentation Regarding Wetland Restoration and Research at San Dieguito Lagoon and Gonzales Canyon in Del Mar
Recommended Action: Receive presentation from Angela Kemsley, Conservation Director from WILDCOAST.

Reference: Clerk’s File No. 1403-4, 1405-1, 1601-9

2. Presentation on River Park JPA Efforts
Recommended Action: Receive presentation from Leana Bulay, Senior Interpretive Ranger and Shawna Anderson, Executive Director from the San Dieguito River Park JPA.

Reference: Clerk’s File No. 1405-1

3. FY 2021-2022 Measure Q Citizen Oversight Committee Report Recommended Action: Receive presentation from Alan Lonbom, Chair of the Measure Q Citizen Oversight Committee.

Del Mar City Council Regular Meeting April 17, 2023
Agenda Page 3
1050 Camino del Mar, Del Mar, CA 92014 www.delmar.ca.us Reference: Clerk’s File No. 401-5
IX. 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 or the public so requests, in which event, the item will be pulled from the Consent Calendar and considered separately after the motion to approve the Consent Calendar. If you wish to remove an item from the Consent Calendar, please submit a “Speaker Slip” to the City Clerk or raise your hand in Zoom.

4. Approval of Minutes: April 3, 2023 Regular and Special Meeting Recommended Action: Approve Minutes.

Reference: Clerk’s Minutes Book

5. Ratification of List of Demands, dated April 17, 2023 Recommended Action: Ratify the List of Demands.

Reference: Clerk’s File No. 201-3

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

Reference: Clerk’s File No. 401-4

7. Approval of Memorandum of Understanding with SANDAG for Preliminary Studies Needed for a Future Regional Beach Sand Project and Related Funding
Recommended Action: Staff recommends the City Council: 1) Approve a Memorandum of Understanding (MOU) with the San Diego Association of Governments (SANDAG) (Attachment A) to complete preliminary studies for a future regional beach sand project as an adaptation strategy to minimize the risk of projected sea level rise impacts; 2) Authorize the City Manager to execute the MOU; and 3) Authorize the allocation of $13,800 for Del Mar’s proportionate share of the preliminary study work.

Reference: Clerk’s File No. 1506-1
Del Mar City Council Regular Meeting April 17, 2023
Agenda Page 4
1050 Camino del Mar, Del Mar, CA 92014 www.delmar.ca.us

8. Approval of Agreement for Parking and Administrative Citation Processing Services
Recommended Action: Staff recommends that the City Council: 1) Approve a professional services agreement with Phoenix Group Information Services (Attachment A) to provide parking and administrative citation processing services for an initial five-year period effective May 1, 2023 and ending May 1, 2028; and 2) Authorize the City Manager to execute the agreement.

Reference: Clerk’s File No. 406-1
X. COUNCIL MEETING RECESS
XI. CITY COUNCIL OTHER BUSINESS

9. Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2022 and Audited Financial Results
Recommended Action: Staff recommends that the City Council: 1) Receive the Annual Comprehensive Financial Report (ACFR) for Fiscal Year Ended June 30, 2022, and audited financial results; and 2) Approve the updated FY 2022-2023 Reserve Summary Report based on FY 2021-2022 final results.

Reference: Clerk’s File No. 202-5, 205-1

10. Coastal Connections Conceptual Planning Study Final Report, Public Feedback on Draft Design Concepts, and Recommendations for Further Evaluation
Recommended Action: Receive the Final Coastal Connections Conceptual Planning Study (Attachment A) and a presentation from the San Diego Association of Governments (SANDAG) on the public comment period for the draft design concepts and provide feedback regarding SANDAG’s proposal to advance the top three (3) concept designs for further evaluation.

Reference: Clerk’s File No. 1506-1, 1601-4, 1601-8, 1601-12 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/Quirk) D. Fire Governance Board, Solana Beach/Del Mar/Encinitas (Quirk/Martinez) Del Mar City Council Regular Meeting April 17, 2023
Agenda Page 5
1050 Camino del Mar, Del Mar, CA 92014 www.delmar.ca.us E. League of California Cities – San Diego Chapter (Martinez/Worden) F. North County Transit District (NCTD) (Druker/Gaasterland) G. Regional Solid Waste Association (Worden/Quirk)
H. San Diego Association of Governments Board (SANDAG)
(Gaasterland/Martinez/Druker
I. SANDAG Borders Committee (Druker)
J. SANDAG Regional Planning Committee (Gaasterland)
K. SANDAG Shoreline Preservation Working Group
(Worden/Gaasterland/Martinez)
L. San Diego Metropolitan Wastewater Commission/JPA (Worden/Quirk/Druker) 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. Arts Advisory Committee (Druker/Worden)
B. Clean Water Rate Project
C. Del Mar Community Connections (Martinez/Worden)
D. Del Mar Village Association (Gaasterland/Martinez)
E. Finance Committee (Druker/Worden)
F. Housing Subcommittee (Gaasterland/Martinez)
G. Human Resources Subcommittee (Druker/Worden)
H. Legislative Subcommittee (Druker/Gaasterland/Mayor Martinez end of 3rd Quarter)
I. Measure Q Citizen Oversight Committee (Gaasterland/Quirk) J. Parks and Recreation Committee (Martinez/Worden)
K. Del Mar Railroad Committee (Druker/Gaasterland)
L. Lagoon Committee (Quirk/Worden)
M. Sea-Level Rise Adaptation Plan Implementation Subcommittee (Gaasterland/Martinez)
N. Shores Advisory Committee
O. Sustainability Advisory Committee (Martinez/Worden)
P. Traffic and Parking Advisory Committee (Quirk/Worden) Q. Undergrounding Project Advisory Committee (Druker/Gaasterland) R. 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.

Del Mar City Council Regular Meeting April 17, 2023
Agenda Page 6
1050 Camino del Mar, Del Mar, CA 92014 www.delmar.ca.us May 1, 2023
2023 Legislative Update to City's Personnel Rules and Regulations Manual Authorization of Agreement for Professional Services for Water and Wastewater Utility Rate Studies Council Consideration of Proposed Council Subcommittee Mission/Purpose Statements XV. CERTIFICATION
I, Nestor Machado, Acting City Clerk for the City of Del Mar, hereby certify that a copy of this agenda was posted at City Hall on the 12th day of April, 2023 at approximately 5:20 p.m.
___________________________________________ 4/12/2023
Nestor Machado, Acting City Clerk
1 April 17, 2023 Item 01
MISSION: CONSERVE COASTAL AND

MARINE ECOSYSTEMS AND ADDRESS

CLIMATE CHANGE THROUGH

NATURAL SOLUTIONS
2 April 17, 2023 Item 01
3 April 17, 2023 Item 01

CORAL REEFS
SEA TURTLE NESTING BEACHES GRAY WHALE MIGRATORY COOR.

WILD BAJA
4 April 17, 2023 Item 01
MARINE

PROTECTED AREAS

COMMUNITY

ENGAGEMENT
MARINE
DEBRIS
5 April 17, 2023 Item 01

MARINE PROTECTED AREAS - COMPLIANCE
MAINTAINING 102 SIGNS IN SAN DIEGO COUNTY
6 April 17, 2023 Item 01
7 April 17, 2023 Item 01
8 April 17, 2023 Item 01
Laguna San Ignacio, BAHIA MAGDALENA, Baja California Sur BAJA CALIFORNIA SUR

CARBON CAPTURED AND STORED IN

COASTAL AND MARINE HABITATS

BLUE CARBON ECOSYSTEMS
9 April 17, 2023 Item 01

MANGROVE

FORESTS
SALT

MARSHES

SEAGRASS
BEDS

BLUE CARBON ECOSYSTEMS
10 April 17, 2023 Item 01

CARBON DRAWN FROM THE ATMOSPHERE INTO

PLANT MATTER IS BURIED IN ACCUMULATING

SEDIMENTS AND CAN REMAIN BURIED FOR

MILLENNIA GULF OF CALIFORNIA
11 April 17, 2023 Item 01
MEXICO

RESTORATIO
N

CARBON SEQUESTRATION STUDIES
12 April 17, 2023 Item 01

CALIFORNIA
CALIFORNIA HAS LOST UP TO 90% OF

COASTAL WETLANDS

SAN DIEGUITO LAGOON, DEL MAR CA
13 April 17, 2023 Item 01
14 April 17, 2023 Item 01
CASE STUDY:

SAN DIEGUITO RIVER VALLEY, DEL MAR
15 April 17, 2023 Item 01

RIVER PATH DEL MAR, DEL MAR CA
16 April 17, 2023 Item 01

GONZALES CANYON, DEL MAR CA
17 April 17, 2023 Item 01

RESEARCH

BATIQUITOS LAGOON, CARLSBAD/ENCINITAS CA
18 April 17, 2023 Item 01

BRIGANTINE BASIN - SAN DIEGUITO LAGOON
STORED CARBON: 12 +/- 6 TONS/ACRE
SEQUESTRATION RATE: .38 +/- .21 TONS/ACRE/YEAR

GRASSLAND
STORED CARBON: 2.5 TONS/ACRE
SEQUESTRATION RATE: .99 TONS/ACRE/YEAR

CHAPARRAL
STORED CARBON: 7 TONS/ACRE
SEQUESTRATION RATE: 2.43 TONS/ACRE/YEAR
19 April 17, 2023 Item 01

NEXT STEPS
● BLUE CARBON COLLABORATIVE
● BLUE CARBON ECOSYSTEM INVENTORY IN SOCAL
● EXPAND CARBON SEQUESTRATION STUDIES
● EXPAND RESTORATION
● 2022 DECADAL REVIEW OF MPAS
20 April 17, 2023 Item 01

ANGELA KEMSLEY
[email protected]

CONSERVATION DIRECTOR

CARLOS CALLADO
[email protected]

BLUE CARBON CONSERVATION COORDINATOR
21 April 17, 2023 Item 01

CREATION OF RECREATIONAL AND

EDUCATIONAL OPPORTUNITIES
1 April 17, 2023 Item 02
INTERPRETATIVE PROGRAMMING:

FIELD TRIPS, GUIDED TOURS, AND

COMMUNITY EVENTS
2 April 17, 2023 Item 02

BIRDWING OPEN AIR CLASSROOM
3 April 17, 2023 Item 02

FLORA & FAUNA OF THE PARK
4 April 17, 2023 Item 02

AQUATIC ANIMALS OF THE PARK

IN PARTNERSHIP WITH UCSB LAGOON

MONITORING TEAM
5 April 17, 2023 Item 02

SEED BALLS, ART PROJECTS AND POETRY
6 April 17, 2023 Item 02

BIRDS & BINOCULARS
7 April 17, 2023 Item 02

RANGER STATION PROGRAMS
8 April 17, 2023 Item 02

ART OF NATURE
9 April 17, 2023 Item 02

PARK AMBASSADORS
10 April 17, 2023 Item 02

POLLINATOR PROGRAMS
11 April 17, 2023 Item 02

GUIDED HIKES
12 April 17, 2023 Item 02

CONNECTING PEOPLE WITH
NATURE
13 April 17, 2023 Item 02

PROGRAMS AT SIKES ADOBE
14 April 17, 2023 Item 02

THE LIFE OF THE SIKES FAMILY
1870’S
15 April 17, 2023 Item 02

SENIOR CENTER PROGRAM
16 April 17, 2023 Item 02

HOUSE TOURS AND

WORKSHOPS
17 April 17, 2023 Item 02
18 April 17, 2023 Item 02

INTERPRETIVE GARDENS
19 April 17, 2023 Item 02

NURSERY AND FARMSTAND
20 April 17, 2023 Item 02

OFF SITE COMMUNITY EVENTS
21 April 17, 2023 Item 02

COMMUNITY OUTREACH EVENTS
22 April 17, 2023 Item 02

WATERSHED EXPLORER

PROGRAM
23 April 17, 2023 Item 02
24 April 17, 2023 Item 02

ESCONDIDO EXPLORES PROGRAM

FUNDED FROM OUTDOOR EQUITY PROGRAM GRANT
(CALIFORNIA DEPARTMENT OF PARK AND RECREATION)
• Targeting underserved youth in Escondido
• $261,435 awarded for a 3-year program
• 6 Community Engagement Programs: career pathways and internships, health and safety and volunteer recruitment and training • 6 Natural Trip Visits: Volcan Mountain, Ilan Leal Foundation, San Diego Archeological Center, Sikes Adobe Historic Farmstead, Lake Hodges, San Dieguito Lagoon and Surprise Farm Retreat Center
25 April 17, 2023 Item 02
26 April 17, 2023 Item 02
27 April 17, 2023 Item 02
Public
Outreach:

Volunteer
Programs
Research
Interpretive
Walks
28 April 17, 2023 Item 02

TRAIL MAINTENANCE
29 April 17, 2023 Item 02

HABITAT RESTORATION
30 April 17, 2023 Item 02

FAMILY EVENTS
31 April 17, 2023 Item 02

ROTARY PROJECTS
32 April 17, 2023 Item 02

CORPORATE VOLUNTEER
GROUPS
33 April 17, 2023 Item 02

TEENS IN ACTION & COUNTY VOLUNTEERS
34 April 17, 2023 Item 02
ANNUAL EVENTS: I LOVE A CLEAN SAN
DIEGO
35 April 17, 2023 Item 02
SCOUT PROJECTS: EAGLE SCOUT,

MERIT BADGES AND

COMMUNITY SERVICE
36 April 17, 2023 Item 02

LOCAL SCHOOLS AND INTERNS
37 April 17, 2023 Item 02

RESEARCH AT THE PARK
38 April 17, 2023 Item 02

WATER QUALITY TESTING
39 April 17, 2023 Item 02

MONTHLY BIRD SURVEYS
40 April 17, 2023 Item 02

CITIZEN SCIENCE PROGRAMS
41 April 17, 2023 Item 02

STUDENT RESEARCH PROJECTS
42 April 17, 2023 Item 02

CAMERA TRAPS
43 April 17, 2023 Item 02

MOBILE APP
44 April 17, 2023 Item 02

INTERPRETIVE CONTENT
45 April 17, 2023 Item 02

INTERPRETIVE WALKS AND QR
CODES
46 April 17, 2023 Item 02

BIRD AND PLANT GUIDES
47 April 17, 2023 Item 02

WATERSHED EDUCATION

PROGRAM
48 April 17, 2023 Item 02

IMPORTANCE OF OUR PARTNERS
49 April 17, 2023 Item 02

NON PROFIT PARTNERS
50 April 17, 2023 Item 02

VOLUNTEER ENRICHMENTS

AND TRAININGS
51 April 17, 2023 Item 02

ANNUAL VOLUNTEER

APPRECIATION PARTY
52 April 17, 2023 Item 02
53 April 17, 2023 Item 02
Questions or comments?
Suggestions for the future?
Thank you for your time!
Leana Bulay
Senior Interpretive Ranger
[email protected]
760-716-1214
54 April 17, 2023 Item 02
FY 2021-2022

MEASURE Q CITIZEN OVERSIGHT

COMMITTEE REPORT
APRIL 17, 2023
1 April 17, 2023 Item 03

MEASURE Q OVERVIEW
• Measure Q passed on November 8, 2016
• 1% sales tax for purpose of providing general city services and infrastructure projects • City Council committed to use Measure Q funds for:
• Downtown Streetscape Project
• Shores Park Development
• Citywide Utility Undergrounding
• Measure Q Citizen Oversight Committee established
• Verify revenues are properly set aside
• Verify expenditures are for approved projects and accurately tracked • Current Committee Members
• Alan Lonbom, Chair; Steven McDowell, Vice Chair; Tom McGreal, Secretary, and Michael Chiappetta • Current Council Liaisons
• Terry Gaasterland and Dan Quirk
2 April 17, 2023 Item 03

MEASURE Q REVENUES
Period FY
2016-17
FY
2017-18
FY
2018-19
FY
2019-20
FY
2020-21
FY
2021-22
3 rd Quarter $ - $937,163 $962,688 $875,978 $573,348 $946,200 4 th Quarter - 636,364 623,210 620,158 504,031 829,837
1 st Quarter - 435,072 476,618 323,015 523,066 743,618
2 nd Quarter 483,227 642,182 730,845 435,016 684,959 867,765 Accrual 251,117 67,209 41,970 26,139 20,049 -
Investments
Earnings (Loss)
- - 27,983 35,401 33,670 (89,422)*
Transfers - - 149,219 4,567 778 -
Total Revenue $734,344 $2,717,990 $3,012,533 $2,320,274 $2,339,901 $3,297,998 *Investment loss value includes $26,423 in investment earnings and ($115,845) in changes in fair market value
3 April 17, 2023 Item 03

MEASURE Q EXPENDITURES

PROJECT FY
2016-17
FY
2017-18
FY
2018-19
FY
2019-20
FY
2020-21
FY
2021-22
Downtown Streetscape $ - $- $3,815,990 $3,115,661 $- $- Shores Park - - - 767 11,402 -
Undergrounding - - 286,373 240,269 137,510 688,100
Roadway & Sidewalks
(MOE)*
- - - - - 150,000
Miscellaneous 6,648 - - - - -
Admin costs** - - 154,603 53,259 68,951
Total Expenditures $6,648 $- $4,102,363 $3,511,300 $202,171 $907,051 *Maintenance of Effort (MOE) – Measure Q portion of required street related expenditures based on General Fund revenue growth.
**Admin costs – Based on actual hours worked by City staff related to Measure Q projects. 4 April 17, 2023 Item 03

MEASURE Q FUND BALANCE

FISCAL YEAR ENDING FUND BALANCE
2016-2017 $727,696
2017-2018 3,445,686
2018-2019 2,355,856
2019-2020 1,164,830
2020-2021 3,302,560
2021-2022 5,693,507
5 April 17, 2023 Item 03

MEASURE Q COMMITTEE APPROACH

IDENTIFICATION OF POTENTIAL KEY RISKS
• Revenues – Potential key risks
• Measure Q revenue misstated by Taxing Authority
• Measure Q revenues applied to wrong account
• Expenditures – Potential key risks
• Measure Q funds used for non-City Council approved projects • Measure Q project expenditures not accurately tracked • Measure Q internal costs applied using inappropriate methodology • Other Potential key risks
• Measure Q loaned funds not repaid
6 April 17, 2023 Item 03

MEASURE Q COMMITTEE PROCEDURES

PROCEDURES TO ADDRESS IDENTIFIED POTENTIAL KEY RISKS
• Scope of work – Fiscal Year Ended June 30, 2022
• Revenues
• Compared historical trends/relationship to general sales tax revenues • Reconciled revenue reports to Revenue Summary
• Traced randomly selected periods to supporting source documents • Expenditures
• Reconciled expenditure reports to Expenditure Summary • Traced randomly selected transactions to supporting source documents • Reviewed process for approvals authorizing payment
• Reviewed internal personnel costs charged to Measure Q • Transfers
• No transfer activity in the reporting period
• Investment Earnings
• Reviewed investment calculations including fair market value adjustments 7 April 17, 2023 Item 03

MEASURE Q COMMITTEE CONCLUSIONS
• Revenues
• Measure Q revenues reasonable in relation to general sales tax revenues • Detailed selection of revenue agreed with supporting source documents • Expenditure analysis
• Detailed selection of expenditure agreed with supporting transaction documents and were for City Council authorized Measure Q projects
• Staff’s process for review and approval of expenditures appear appropriate • Method used to apply internal personnel costs charged to Measure Q appear appropriate and reasonable
• Transfers
• No transfer activity during reporting period
• Investment Earnings
• No exceptions noted in review of investment earnings
8 April 17, 2023 Item 03

DEL MAR CITY COUNCIL

SPECIAL MEETING MINUTES

CLOSED SESSION
APRIL 3, 2023
City of Del Mar Town Hall
1050 Camino del Mar, Del Mar, California

CALL TO ORDER
Mayor Martinez called the meeting to order at 3:30 P.M.

ROLL CALL

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

CLOSED SESSION
A. Conference with Legal Counsel – Existing Litigation
Sheryl White and Harvey White, et. al. v. City of Del Mar, et. al.

Case No. 37-2023-00004452-CU-TT-CTL
Authority: Govt. Code § 54956.9(d)(1)
Reportable Action: None.

B. Conference with Legal Counsel – Existing Litigation
Gina Mattern v. City of Del Mar
Case No. 37-2023-00010313-CL-JR-CTL
Authority: Govt. Code § 54956.9(d)(1)
Reportable Action: None. Councilmember Druker was recused due to living within 500 feet of the subject matter of that discussion.

C. Conference with Legal Counsel – Existing Litigation
Danielle Nicholas v City of Del Mar
Case No. 37-2023-00010328-CL-JR- CTL
Authority: Govt. Code § 54956.9(d)(1)
Reportable Action: None. Councilmember Druker was recused due to living within 500 feet of the subject matter of that discussion.

ADJOURNMENT
Mayor Martinez adjourned the meeting at 4:11 P.M.

Kseniia Izgarskaia, Associate Management Analyst/
Acting City Clerk
1 April 17, 2023 Item 04

CITY OF DEL MAR

CITY COUNCIL REGULAR MEETING MINUTES
APRIL 3, 2023
City of Del Mar Town Hall
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 Martinez called the Regular Meeting to order at 4:31 p.m.

ROLL CALL

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

CITY ATTORNEY CLOSED SESSION REPORT
City Attorney Leslie Devaney reported on the April 3, 2023, City Council Closed Session meeting. She reported that for Item A, there were no recusals and no reportable actions. For Items B and C, there were no reportable actions and Councilmember Druker was recused due to living within 500 feet of the subject matter for those items.

PLEDGE OF ALLEGIANCE
Mayor Martinez led the Pledge of Allegiance.

PUBLIC ORAL COMMUNICATIONS
Mayor Martinez opened Public Oral Communications and the following people spoke:
1) Ken Olson
2) Cole Reed
Mayor Martinez closed the item to public comment.

CITY COUNCIL COMMENTS & COMMUNITY ANNOUNCEMENTS
Councilmember Druker announced the grand opening of Tot Lot. Councilmember Worden reported on Model United Nations session and presented a PowerPoint presentation on the Monarch Butterfly Garden.

CITY MANAGER’S REPORT
City Manager Ashley Jones reported on launching the eTraKit online permitting portal, and Senate Bill 9 public outreach efforts in preparation to bring back a draft ordinance for the Planning Commission’s consideration in May 2023.
2 April 17, 2023 Item 04
City Council Regular Minutes
April 3, 2023

PRESENTATIONS
ITEM 1: PROCLAMATION HONORING JON EDELBROCK FOR 30 YEARS OF SERVICE TO THE CITY OF DEL MAR (CLERK’S FILE NO. 1201-5)
Mayor Martinez presented a proclamation honoring Community Services Director/Lifeguard Chief Jon Edelbrock for 30 years of service to the City of Del Mar. City Council and City Manager Jones thanked Jon Edelbrock for his service.

CONSENT CALENDAR
Associate Management Analyst Kseniia Izgarskaia, who served as City Clerk for the meeting, 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 WORDEN TO APPROVE THE CONSENT CALENDAR ITEMS 2 THROUGH 8 AND ITEMS 9 AND 10 THAT WERE MOVED TO THE CONSENT CALENDAR. (VOTE 5-0)
Ayes: Mayor Martinez, Deputy Mayor Quirk, and Councilmembers Druker, Gaasterland and Worden; Noes: 0; Absent: 0; Abstain: 0.

ITEM 2: APPROVAL OF MINUTES: MARCH 6, 2023 REGULAR MEETING, MARCH 20, 2023 REGULAR AND SPECIAL MEETING (CLERK’S MINUTES BOOK)
Council approved the minutes, on consent.

ITEM 3: RATIFICATION OF LIST OF DEMANDS, DATED APRIL 3, 2023 (CLERK’S FILE NO. 201-3)
Council approved the list of demands, on consent.

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

ITEM 5: SIXTH AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH KLEINFELDER, INC. FOR THE CAMINO DEL MAR BRIDGE REPLACEMENT PROJECT (CLERK’S FILE NO. 406-1)
Council approved the Sixth Amendment to extend the Professional Services Agreement with Kleinfelder, Inc. (Kleinfelder) for engineering design services for the Camino Del Mar Bridge Replacement Project; and authorized the City Manager to execute the Sixth Amendment, on consent.

ITEM 6: ACCEPTANCE OF A DONATION FROM THE DEL MAR FOUNDATION FOR PORTABLE LIGHTING (CLERK’S FILE NO. 201-16, 1202-11)
Council accepted a donation of $3,652 from the Del Mar Foundation to purchase a portable outdoor lighting system; and amended the Fiscal Year 2022-23 Operating and Capital Budget to reflect the donation, on consent.
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April 3, 2023

ITEM 7: APPROVAL OF EMERGENCY FUNDING FOR SAN DIEGUITO DRIVE EMBANKMENT FAILURE REPAIRS (CLERK’S FILE NO. 1101-1)
Council approved $135,000 in emergency funding for construction, traffic control and geotechnical engineering for the emergency work related to the San Dieguito Drive embankment failure; ratified any prior authorization by the City Manager to facilitate the emergency repairs as well as authorized execution of any documents necessary to complete the work; and amended the Fiscal Year (FY) 2022-2023 Operating and Capital Budget as described in the Fiscal Impact section of this report to fund the emergency repair work, on consent.

ITEM 8: SAN DIEGUITO DRIVE WATER PIPELINE EMERGENCY REPAIRS - TASK ORDER AMENDMENT (CLERK’S FILE NO. 406-1, 1103-1)
Council approved a $33,900 emergency time-and-materials task order amendment with Southland Paving, Inc. (Southland); authorized the City Manager to execute the task order amendment to fund the additional scope of necessary emergency repair work; and authorized the transfer of $25,000 in additional funds from the Water Infrastructure Improvement project to the San Dieguito Water Pipeline Repair project, on consent.

PUBLIC HEARING
ITEM 9: AMENDMENT TO TRANSNET LOCAL STREET IMPROVEMENT PROGRAM OF PROJECTS FOR FISCAL YEARS 2022-2023 THROUGH 2026-2027 (CLERK’S FILE NO. 1506-1)
The public hearing was opened and closed. There were no public speakers for this item.

The item was moved to the consent calendar for approval of Resolution 2023-9, “A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL MAR, CALIFORNIA,

APPROVING AN AMENDMENT TO THE TRANSNET LOCAL STREET IMPROVEMENT PROGRAM OF PROJECTS FOR FISCAL YEARS 2023 THROUGH 2027”, and to amend the Fiscal Year 2022-23 Operating and Capital Budget to reflect the utilization of current year TransNet funding, on consent.

ITEM 10: COOPERATION AGREEMENT WITH THE COUNTY OF SAN DIEGO FOR CONTINUED

PARTICIPATION IN THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CLERK’S FILE NO. 201-13)
The public hearing was opened and closed. There were no public speakers for this item.

The item was moved to the consent calendar for approval of Resolution 2023-10, “A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL MAR, CALIFORNIA,

APPROVING A THREE-YEAR EXTENSION OF AN EXISTING COOPERATION

AGREEMENT BETWEEN THE CITY OF DEL MAR AND THE COUNTY OF SAN DIEGO

FOR ADMINISTRATION OF THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM”, and to authorize the City Manager to execute the necessary documents, on consent.

ITEM 11: RESOLUTION TO ADOPT THE FINAL INITIAL STUDY/MITIGATED NEGATIVE

DECLARATION FOR THE CAMINO DEL MAR BRIDGE REPLACEMENT PROJECT (CLERK’S FILE NO. 803-3, 901-3)
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April 3, 2023

A presentation was provided by Principal Planner Amanda Lee.

Council questions focused on impacts to parking spaces and pedestrian access upgrades.

There were no public speakers for this item.

IT WAS MOVED BY COUNCILMEMBER DRUKER, SECONDED BY MAYOR MARTINEZ TO ADOPT RESOLUTION 2023-11, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL MAR,

CALIFORNIA, TO ADOPT A FINAL INITIAL STUDY/MITIGATED NEGATIVE DECLARATION PREPARED FOR THE CAMINO DEL MAR BRIDGE REPLACEMENT PROJECT”. (VOTE 5-0) Ayes: Mayor Martinez, Deputy Mayor Quirk, and Councilmembers Druker, Gaasterland and Worden; Noes: 0; Absent: 0; Abstain: 0.

ITEM 12: RE-ADOPTION OF THE 6TH CYCLE HOUSING ELEMENT – GENERAL PLAN AMENDMENT (GPA20-003) (CLERK’S FILE NO. 304-7)
An introduction to the item was provided by Planning & Community Development Director Karen Brindley.

A presentation was provided by Principal Planner Amanda Lee.

Council questions focused on Housing and Community Development’s (HCD) 60 days review and response timeline, solicitation of additional support letters from Del Mar’s State representatives, impacts of Programs 7G and 7F, related to seniors and students, in meeting the Regional Housing Needs Assessment’s (RHNA) numbers, HCD requirement to include 100 additional housing opportunities during the 6th Cycle, deadline for objective design standards, Chapter 2 Community Profile and homeless numbers, development of City-owned sites or an alternative strategy, and clarification regarding the Surplus Lands Act.

There were no public speakers for this item.

Council thanked staff for their hard work on the Housing Element and discussion focused on directing staff to request letters of support from State representatives; concerns over HCD’s requirement to include 100 additional housing opportunities in the Housing Element, and the City’s Community Plan.

IT WAS MOVED BY COUNCILMEMBER GAASTERLAND, SECONDED BY MAYOR MARTINEZ TO ADOPT AMENDED RESOLUTION 2023-12, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DEL MAR, CALIFORNIA, TO RE-ADOPT THE 6TH CYCLE HOUSING ELEMENT (GPA 20-003), WHICH IS THE CITY’S HOUSING PLAN COVERING THE YEARS 2021-2029, THAT CONSTITUTES

AN AMENDMENT TO THE CITY OF DEL MAR COMMUNITY PLAN (GENERAL PLAN), APPLICABLE

CITYWIDE WITHIN THE CITY OF DEL MAR, CALIFORNIA IN COMPLIANCE WITH STATE HOUSING ELEMENT LAW; AND AUTHORIZING STAFF TO SUBMIT THE RE-ADOPTED 6TH CYCLE HOUSING

ELEMENT TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (HCD) FOR CERTIFICATION”, WITH THE RED DOT AMENDMENT CLARIFYING THAT THE RESOLUTION WILL BE EFFECTIVE 30 DAYS FROM COUNCIL ACTION TO ADOPT, AND THAT

CITY STAFF WILL SUBMIT ADOPTED HOUSING ELEMENT PACKAGE TO HCD UPON COUNCIL ACTION. (VOTE 5-0)
Ayes: Mayor Martinez, Deputy Mayor Quirk, and Councilmembers Druker, Gaasterland and Worden; Noes: 0; Absent: 0; Abstain: 0.
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April 3, 2023

CITY COUNCIL OTHER BUSINESS
ITEM 13: PROPOSED NEXT STEPS FOR DEL MAR CIVIC CENTER SCULPTURE SELECTION PROCESS (CLERK’S FILE NO. 103-1, 103-4, 1202-5)
A presentation was provided by Special Projects & Programs Manager Michael Luna. Further, a presentation was provided by Art Advisory Committee Chair Bonnie Grossman.

Council questions focused on process to narrow the proposals down to top three recommended sculptures for consideration, potential to add fourth option “none of the above” or providing the public opportunity to weigh in on other art pieces not recommended by committee, potential use of a survey, extension of 30 days review period, story poles of the art pieces, and various outreach options.

Mayor Martinez opened the item to public comment and the following people spoke:
1) Betty Wheeler
2) Tim Bilash
Mayor Martinez closed the item to public comment.

Council thanked the Arts Advisory Committee for their work in bringing this item forward. Council discussion focused on extending the public comment period from 30 to 60 days, the Design Review Board’s (DRB) role, educational component to the outreach, cost and timing, allowing public to weigh in on other pieces not chosen by the committee but meet the art selection criteria included in the Art Policy, mockups showing dimensions and visual representation, and funding commitment by the Del Mar Foundation and private donor.

IT WAS MOVED BY COUNCILMEMBER DRUKER, SECONDED BY COUNCILMEMBER WORDEN

TO APPROVE NEXT STEPS FOR THE DEL MAR CIVIC CENTER SCULPTURE SELECTION PROCESS; INCREASING PUBLIC COMMENT PERIOD TO 60 DAYS; INCLUDING STORY POLES FOR THE THREE RECOMMENDED SCULPTURES; REFERENCE NONE OF THE ABOVE OPTION AND WEIGH IN ON OTHER ART PIECES NOT RECOMMENDED BY COMMITTEE. (VOTE 5-0) Ayes: Mayor Martinez, Deputy Mayor Quirk, and Councilmembers Druker, Gaasterland and Worden; Noes: 0; Absent: 0; Abstain: 0.

REGIONAL ORGANIZATION AND COUNCIL COMMITTEES/SUBCOMMITTEES/COMMUNITY

ORGANIZATION REPORTS
None.

ADJOURNMENT
Mayor Martinez adjourned the meeting at 6:35 p.m.
______
Kseniia Izgarskaia, Associate Management Analyst/
Acting City Clerk
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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: April 17, 2023
SUBJECT: Approval of Memorandum of Understanding with SANDAG for Preliminary Studies Needed for a Future Regional Beach Sand Project and Related Funding
REQUESTED ACTION/RECOMMENDATION:

Staff recommends the City Council: 1) Approve a Memorandum of Understanding (MOU) with the San Diego Association of Governments (SANDAG) (Attachment A) to complete preliminary studies for a future regional beach sand project as an adaptation strategy to minimize the risk of projected sea level rise impacts; 2) Authorize the City Manager to execute the MOU; and 3) Authorize the allocation of $13,800 for Del Mar’s proportionate share of the preliminary study work.

DISCUSSION/ANALYSIS:

SANDAG is seeking a City of Del Mar (City) funding contribution towards a large regional planning effort to complete preliminary studies for a future regional beach sand project (RBSP). The study findings will be used by SANDAG to supplement future work and permitting efforts to authorize the dredging of beach quality sand from offshore borrow sites and placement of that sand on beaches in the San Diego region. After obtaining the necessary approvals and securing funding, SANDAG’s ultimate goal is to carry out a beach sand replenishment project as a means to maintain wide beaches to protect coastal communities and critical infrastructure, transportation, and public facilities from impacts due to projected sea level rise.

Beach adaptation through sand replenishment is a nature-based “Sustainable Communities Strategy” identified in SANDAG’s 2021 Regional Plan. Beach sand projects require preparation of a variety of studies (i.e., preliminary planning and feasibility studies, sediment sampling and analysis, and environmental studies), federal and state resource agency approvals, and engineering/construction and monitoring plans prior to implementation of an actual project. SANDAG previously implemented similar regional beach sand projects in 2001 (RBSP 1 - City participated) and 2012 (RBSP 2 - City did not participate due to budget concerns). Since 1996, the City has also participated in SANDAG’s Shoreline Monitoring 1 April 17, 2023 Item 07
City Council Agenda Report
RBSP 3 MOU
April 17, 2023

Program to collect regional shoreline data (i.e., beach width, sand volume, and erosion “hot spots”), which supports implementation of RBSPs and other adaptation strategies.

SANDAG is asking for City support to complete studies for the first phase of a third regional beach sand project (RBSP 3), which would involve dredging sand from a borrow site off the coast of Del Mar and placement of the sand on the Del Mar beach and other beaches in the San Diego region. SANDAG intends to hire a consultant to complete the Phase I studies as described in the MOU Scope of Work (Exhibit A to Attachment A). Following is a summary of the three main deliverables:
 Economic Analysis – Will include preliminary cost estimates of a range of project alternatives that may include one pilot sand retention strategy (e.g., City of Oceanside’s Phase II Sand Nourishment and Retention Pilot Project), a cost benefit analysis, and discussion of economic impacts.
 Feasibility Study – Will identify the problem, describe existing site conditions, explain how beach nourishment can protect critical infrastructure from sea level rise, identify the permits and approvals required and project alternatives, and include the economic analysis and methods to reduce costs (i.e., leverage other efforts including the United States Army Corps of Engineers San Diego Coastal Storm Reduction Project in Encinitas and Solana Beach, other beach sand projects in the region, and opportunities to use the new USACE west coast dredge).
 Survey of Offshore Borrow Sites – Identify prior RBSP borrow sites and any additional candidate borrow sites in the northern portion of San Diego County. Investigate and determine the outer boundaries for a minimum of three offshore borrow sites. Estimate the quantity of sand available for beach nourishment along the San Diego coastline.

SANDAG’s goal is to have at least five jurisdictions participate in the regional project. The Cities of Oceanside, Solana Beach, Encinitas, and Imperial Beach already adopted MOU commitments in January/February 2023 to contribute funding for the RBSP 3 preliminary studies. The City of Carlsbad City Council will consider the MOU at their May 9, 2023, meeting and the cities of San Diego and Coronado may also enter into MOUs for the regional project.

Councilmembers Worden (primary) and Gaasterland (alternate) represent the City on SANDAG’s Shoreline Preservation Working Group, which serves as a regional forum where elected officials are engaged in regional adaptation projects and provides an opportunity for the City to share its local adaptation goals and priorities as reflected in the City’s adopted Sea Level Rise Adaptation Plan (2018). Similar to the regional plan, Del Mar also has identified beach sand nourishment as a high priority goal to maintain a wide sandy beach, minimize bluff erosion, minimize flooding, and adapt to sea level rise.

SANDAG is requesting the City Council allocate funding in the amount of $13,800 to support completion of preliminary planning activities needed for implementation of RBSP 3. This 2 April 17, 2023 Item 07
City Council Agenda Report
RBSP 3 MOU
April 17, 2023

amount represents the City’s proportional share of a total cost of $200,000 as estimated by SANDAG for the pending preliminary planning activities. SANDAG confirmed that the City does not have any funds in the Coastal Commission Beach Sand Mitigation Account for use towards this MOU commitment. However, there are sufficient local funds currently available in the City’s Sand Compatibility Opportunistic Use Program (SCOUP) special project fund that could be used to cover the cost.

The MOU clarifies that it does not commit any of the parties to work on any portion of a beach sand replenishment project beyond the stage of preliminary planning activities. While SANDAG is asking the coastal jurisdictions to pay for the preliminary studies, their plan for future phases is to use the information collected to apply for state and federal grant opportunities (i.e., State Parks Division of Boating and Waterways). While the City has been unsuccessful in being selected for State grant funds for beach nourishment, SANDAG is of the opinion that the regional project application will be more competitive. Any grant funds awarded would be used to fund Phases II and III of RBSP 3. SANDAG provided the following cost estimate for future phases based on the cost of RBSP 2 (2012) as adjusted for inflation:

Phase II = $3 million and Phase III = $37 million.

FISCAL IMPACT:

Council approval of the recommended action for this agenda item includes the allocation of $13,800 from the City’s SCOUP special project fund to cover the City’s proportional share of the preliminary studies to be completed under the MOU. Sufficient funds are available in the FY 2022-2023 Operating and Capital Budget.

ENVIRONMENTAL IMPACT:

Pursuant to the California Environmental Quality Act (CEQA), the proposed City Council action is exempt from CEQA pursuant to the common-sense exemption (CEQA Guidelines Section 15061(b)(3)) because it can be seen with certainty that there is no possibility that authorization of the agreement with SANDAG in support of planning and feasibility studies may have a significant effect on the environment. The MOU does not commit the City or other parties to any work beyond the scope of the preliminary studies, which are intended to identify options for the most economically and biologically feasible plan to nourish San Diego’s coastline. Environmental documentation for future phases of a regional beach sand project will be determined based on the findings of the preliminary studies.

NEXUS TO CITY COUNCIL GOALS AND PRIORITIES:

This item relates to implementation of the City’s Sea Level Rise Adaptation Plan, which is a City Council priority. The City is in the process of obtaining federal and state approvals of its program-level Sand Compatibility Opportunistic Use Program (SCOUP), which are expected to be secured by June 2023.

ATTACHMENT:

Attachment A – SANDAG MOU
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MEMORANDUM OF UNDERSTANDING

BETWEEN SAN DIEGO ASSOCIATION OF GOVERNMENTS

AND THE CITY OF DEL MAR

REGARDING PRELIMINARY PLANNING ACTIVITIES FOR A

REGIONAL BEACH SAND PROJECT
SANDAG CONTRACT NO. S1207541
This Memorandum of Understanding (MOU) is made and entered into effective as of the last signature date below, by and between the San Diego Association of Governments (“SANDAG”) and the City of Del Mar.

RECITALS
WHEREAS, in 1996, SANDAG adopted the Shoreline Preservation Strategy (Strategy) that outlines an extensive beach building and maintenance program for the critical shoreline erosion areas in the region, containing a comprehensive set of recommendations on the beach building program and on financing and implementation; and
WHEREAS, in 2001, SANDAG successfully implemented a Regional Beach Sand Project (RBSP) that placed 2.1 million cubic yards of sand on 12 beaches in the San Diego region; and WHEREAS, in 2012, SANDAG successfully implemented a second Regional Beach Sand Project (RBSP II) that placed 1.5 million cubic yards of sand on 8 beaches in the San Diego region; and WHEREAS, in 2021, SANDAG adopted the 2021 Regional Plan, which includes a Sustainable Communities Strategy that promotes nature-based climate solutions as a climate adaption strategy; and WHEREAS, the State of California has identified beach nourishment as a type of nature-based climate solutions; and
WHEREAS, the San Diego region is committed to implementing the Strategy; and WHEREAS, the region’s coastal cities representatives on the SANDAG Shoreline Preservation Working Group have expressed an interest and desire to initiate a Regional Beach Sand Project III (RBSP III); and
WHEREAS, a number of benefits, including recreational, economic, and public safety enhancements, protection of infrastructure, and increases in habitat, would occur as a result of beach nourishment; and
WHEREAS, the first Phase of a RBSP III would be preliminary planning activities that include updating the Feasibility and Economic Analysis done in 2007 at an estimated cost of $200,000 in preliminary planning activities for the RBSP III, which is requested to be paid by the region; and WHEREAS, the preliminary planning activities as identified in attachments to this MOU include updating the feasibility study and economic analysis done in 2007, determining lessons learned, identifying streamlining and cost saving options, and estimating the total cost for engineering, environmental and construction for a RBSP III (Preliminary Planning Activities); and

ATTACHMENT A
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2 WHEREAS, the allocation of funds among the coastal cities (City of San Diego, City of Carlsbad, City of Encinitas, City of Imperial Beach, City of Oceanside, City of Del Mar and City of Solana Beach, together the “Coastal Cities”) should be based upon the number of miles of coastline within each city, which is a method used for the Regional Shoreline Monitoring Program that is currently funded by the Coastal Cities; and
WHEREAS, SANDAG requires a written funding commitment for each participating Coastal City prior to work beginning on the Preliminary Planning Activities; and WHEREAS, this MOU does not and is not intended to commit any of the parties to working on any portion of the RBSP III beyond the stage of Preliminary Planning Activities; and WHEREAS, the City of Del Mar has 3.0 miles of shoreline within San Diego County which is 6.90 percent of the region’s coastline equaling a total contribution of $13,800.00 (Proportional Share) for Preliminary Planning Activities necessary for the development of RBSP III; and WHEREAS, the parties wish to memorialize their agreement in this MOU to carry out the purposes set forth above;

AGREEMENT
NOW THEREFORE, in consideration of the mutual promises set forth herein, the parties agree as follows:

SANDAG AGREES:

1. To use the City of Del Mar’s Proportional Share solely to pay for Preliminary Planning Activities to evaluate the potential for RBSP III, which includes an investigation of offshore sand sources and preliminary project design for the preparation of a regional beach sand project. Funds will be kept by SANDAG in an interest-bearing account with interest credited to City of Del Mar prorated to reflect its contribution to the Preliminary Planning Activities as compared to each Coastal City’s contributions, until the completion of the Preliminary Planning Activities. Unused funds will be returned to each Coastal City on a similarly pro-rated basis.

2. To retain the original records for at least 5 years from the date of the Preliminary Planning Activities completion and make them available to the City of Del Mar upon request.

3. To not proceed beyond the first phase of Preliminary Planning Activities without assurances that each participating Coastal City has entered into a subsequent memorandum of understanding reflecting the jurisdiction’s desire and commitment to participate in the RBSP III, reflecting approvals of appropriations for the phases of the RBSP III after Preliminary Planning Activities, the aggregate of which will fund the RBSP III.

4. Neither City of Del Mar, nor any officer thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by SANDAG under or in connection with any work, authority, or jurisdiction delegated to SANDAG under this MOU. It is understood and agreed that, pursuant to Government Code Section 895.4, SANDAG shall fully defend, indemnify, and save harmless City of Del Mar, all officers, and employees from all claims, suits, or actions of every name, kind, and description brought for or on account of injury (as defined in Government Code Section 810.8) occurring by reason of anything done or omitted to be done by SANDAG under or in connection with any work, authority, or jurisdiction delegated to SANDAG under this MOU. 5 April 17, 2023 Item 07
3 CITY OF DEL MAR AGREES:

5. The City of Del Mar will approve an appropriation of $13,800.00, such amount being its Proportional Share to SANDAG for the Preliminary Planning Activities, which funds will be paid to SANDAG prior to the start date of the Preliminary Planning Activities.

6. The City of Del Mar understands and agrees that the proportionate amount may decrease or increase based upon the participation of other Coastal Cities in the Preliminary Planning Activities, but any increase beyond $13,800.00, will require and is subject to subsequent approval by the City Council or designee.

7. Neither SANDAG nor any officer thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by City of Del Mar under or in connection with any work, authority, or jurisdiction delegated to City of Del Mar under this MOU. It is understood and agreed that, pursuant to Government Code Section 895.4 as well as the terms of this MOU, City of Del Mar shall fully defend, indemnify, and save harmless SANDAG, its Board of Directors, all its officers, and all its employees from all claims, suits, or actions of every name, kind, and description brought for or on account of injury (as defined in Government Code Section 810.8) occurring by reason of anything done or omitted to be done by the City of Del Mar under or in connection with any work, authority, or jurisdiction delegated to City of Del Mar under this MOU.

THE PARTIES MUTUALLY AGREE:

1. That all obligations of SANDAG under the terms of this MOU are subject to the appropriation of the required resources by SANDAG and the approval of the SANDAG Board of Directors.

2. Any notice required or permitted under this MOU may be personally served on the other party, by the party giving notice, or may be served by certified mail, return receipt requested, to the following addresses:

For SANDAG For City of Del Mar
401 B Street, Suite 800 1050 Camino del Mar
San Diego, CA 92101 Del Mar, CA 92014
Attn: Courtney Pesce Attn: Amanda Lee

3. This MOU shall continue in effect unless and until a party to the MOU gives 60 (sixty) days written notice of its desire to withdraw from the MOU.

4. In accordance with Public Utilities Code section 132354.1(b)(4), all parties shall maintain and make available for inspection all books, documents, papers, accounting records, emails and other evidence pertaining to the performance of the Agreement, including but not limited to, the costs of administering the MOU to the SANDAG Independent Performance Auditor. All parties shall make such materials available at their respective offices at all reasonable times during the MOU period and for three years from the date of final payment under the MOU.

5. The indemnification and defense provisions of this MOU shall survive termination of the MOU. 6 April 17, 2023 Item 07
4 6. This MOU shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this MOU, the action shall be brought in a state or federal court situated in the County of San Diego, State of California.

7. All terms, conditions, and provisions hereof shall inure to and shall bind each of the parties hereto, and each of their respective heirs, executors, administrators, successors, and assigns.

8. For purposes of this MOU, the relationship of the parties is that of independent entities and not as agents of each other or as joint ventures or partners. The parties shall maintain sole and exclusive control over their personnel, agents, consultants, and operations.

9. No alteration or variation of the terms of this MOU shall be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein shall be binding on any of the parties hereto.

10. Nothing in the provisions of this MOU is intended to create duties or obligations to or rights in third parties to this MOU or affect the legal liability of the parties to this MOU.

11. Nothing in the provisions of this MOU commits either of the parties to working on and/or providing additional funding for any portion of the beach sand replenishment project beyond the stage of preliminary planning activities.

12. This MOU may be executed in any number of identical counterparts, each of which shall be deemed to be an original, and all of which together shall be deemed to be one and the same instrument when each party has signed one such counterpart.

13. This MOU may be executed and delivered by electronic signature.

IN WITNESS WHEREOF, the Parties hereto have executed this MOU effective as of the last date a party provides an electronic signature below.

SAN DIEGO ASSOCIATION OF

GOVERNMENTS

CITY OF DEL MAR

COLEEN CLEMENTSON
Chief Deputy Executive Director

ASHLEY JONES
City Manager
APPROVED AS TO FORM: APPROVED AS TO FORM:

Office of General Counsel Legal Counsel
MOU Exhibits: “A” Project Scope of Work; “B” Project Budget; “C” Project Schedule 7 April 17, 2023 Item 07
MOU Exhibits
Regional Beach Sand Project III (RBSPIII)
Feasibility Study & Economic Analysis
“Exhibit A” Scope of Work
INTRODUCTION:

SANDAG is the Metropolitan Planning Organization (MPO) for the San Diego region and plays a key role in the regional coordination of a variety of projects. The San Diego region has 19 jurisdictions, 10 of which are located in the coastal zone and collectively manage approximately 70 miles of coastline which can be accessed via transit, highways, roadways, and bicycle and pedestrian facilities. A number of these facilities are at risk from the impacts of rising seas, high tides, and strong storms. As such, access to beaches, residences, and public facilities may be impacted. This would be particularly impactful to disadvantaged populations living in the cities of Oceanside, Carlsbad, City of San Diego, National City, Chula Vista, and Imperial Beach which have populations that fall in the 70-100 percentile of the demographic index (source:

EJSCREEN).

SANDAG proposes to conduct a feasibility study for a regional beach sand nourishment project which would use information from SANDAG’s Round 1 SB 1 Caltrans Adaptation Planning Grant effort to identify transportation facilities that will be impacted by sea-level rise and may benefit from beach nourishment. Implementation of a regional beach sand project would involve dredging beach quality sand from offshore borrow sites and placing it on highly eroded beaches in the San Diego region. Beach nourishment is being considered as a sea-level rise adaptation strategy by a number of cities in the San Diego region who have updated their Local Coastal Programs to align with the California Coastal Commission’s Guidance on sea-level rise. Wide beaches can help protect coastal communities and coastal transportation facilities by acting as a buffer to alleviate some of the impacts from sea-level rise, strong storm events, and high tides. SANDAG has previously completed two regional beach sand nourishment projects in 2001 and 2012 (RBSP I and RBSP II, respectively), adding approximately 3.5 million cubic yards of sand to the region's local beaches. In addition, SANDAG has an established regional forum (the Shoreline Preservation Working Group) where elected officials are engaged in regional adaptation projects, such as beach nourishment.

SANDAG will coordinate closely with city staff, city council members who serve on SANDAG’s Shoreline Preservation Working Group (SPWG), and other technical advisors on this project.

Work efforts from this project will be summarized in two final deliverables: the feasibility study and the off-shore borrow site survey plan.

RESPONSIBLE PARTIES
SANDAG will require the assistance of a consulting team to complete this work. SANDAG has not yet selected which firm will provide this assistance, but will utilize the agency’s list of on-call consultants, selected through the established procurement procedures, to find the appropriate firm(s) to perform this work. Generally, SANDAG will be responsible for overall project management and administration and will play a role in coordinating with local jurisdictions as well as drafting and editing the feasibility study. The consultant will be responsible for the majority of other tasks including the review of existing monitoring data, completing the offshore borrow site survey plan, completing the economic analysis, and finalizing the feasibility study. 8 April 17, 2023 Item 07
Exhibit A – Scope of Work
OVERALL PROJECT OBJECTIVES:
 Identify beach erosion areas in the San Diego region that may impact coastal transportation infrastructure through review of existing data and coordination with coastal jurisdiction staff.
 Evaluate the economic costs and benefits of implementing a regional beach nourishment project and several alternatives to that project that may include one pilot sand retention strategy.
 Complete a feasibility study for a future regional beach nourishment project and alternatives.
 Create a plan for surveying offshore sand borrow sites to ensure adequate quantities of sand are available to nourish the San Diego region’s beaches.

1. Project Management and Administration
 SANDAG will hold a kick-off meeting to discuss procedures and project expectations, including invoicing, quarterly reporting, and other relevant project information. Meeting summary will be documented.
 Utilize an existing on-call agreement to select consultants using the proper procurement procedures.
 SANDAG will hold a kick-off meeting with the consultants to review the scope of work, timeline, communication protocols, and other relevant project information. Meeting summary will be documented.
 Coordinate with the consultants through regular communication (including in-person meetings and/or conference calls) to ensure project remains on time and within budget. Meeting notes will be documented.
 Consultant will invoice SANDAG and provide a brief summary of work efforts on a monthly basis.

Task 1 Deliverables
 Meeting Notes and Summaries
 Subcontractor Agreements
 Invoice Packages and Quarterly Reports

2. Economic Analysis
 Using actual costs from RBSP II, the consultant will prepare an economic analysis that will include the following components: preliminary cost estimates of a range of project alternatives that may include one pilot sand retention strategy, a benefit/cost analysis of the project alternatives, and a discussion of economic impacts. This economic analysis will be summarized in the feasibility study and included as an appendix to the final document.  The contractor will evaluate the Benefit Cost Analysis (BCA) prepared by the U.S. Army Corps of Engineers for the Encinitas-Solana Beach Coastal Storm Damage Reduction Project and the economic analysis conducted for the 2007 feasibility study (for RBSP II) provide a methodology for the analysis for approval by SANDAG.
 The BCA should be developed to allow federal agencies to evaluate the benefit to cost ratio of the project and various subsegments of the project (by littoral cell or jurisdiction). 9 April 17, 2023 Item 07
Exhibit A – Scope of Work
 The contractor should assume 3 rounds of comments in the preparation of the Draft Economic Analysis as follows, comments by SANDAG on the draft, comments from the members of the Shoreline Preservation Working Group on the draft, and comments from the public.

Task 2 Deliverables
 Methodology Approach for the Economic Analysis
 Draft Economic Analysis Technical Appendix
 Final Economic Analysis Technical Appendix

3. Regional Beach Sand Replenishment Project (RBSP III) Feasibility Study  Using information obtained from Tasks 2, consultant will draft a feasibility study for a future regional beach sand project (RBSPIII). The 2007 feasibility study that was prepared for RBSP II will be used as a template and the updated feasibility study will address the same major topics including, but not limited to: a statement of the problem, a description of existing site conditions, consideration of project alternatives, methods to reduce costs and leverage other efforts in southern California, and economic considerations.  The feasibility study will also include an explanation of how beach nourishment can be used to protect coastal critical infrastructure in the region from sea level rise. Example from other regions should be provided.
 The feasibility study will identify the various permits and approvals that would be needed for the implementation of this project.
 As part of the Feasibility Study, or a separate report, the consultant will address the lessons learn from prior RBSP I and II, opportunities that arise from other relevant nourishment efforts and address:

1. ways to streamline environmental clearance under CEQA/NEPA, and regulatory permits,

2. ways to leverage opportunities arising from the San Diego Coastal Storm Damage Reduction Project any other southern California beach nourishment or sand bypass projects, or use of the the Army Corps west coast hopper dredge,  The feasibility will also address the needs of the sand nourishment needs, if any, of jurisdictions fronting the San Diego Bay.
 A meeting will be scheduled with interested stakeholders (city staff, members of the SPWG, members of the public) to review the draft feasibility study and solicit feedback. SANDAG will likely use a scheduled SPWG meeting as the forum for this discussion. Comments from stakeholders may also be submitted in writing and revisions to the feasibility study will be made as needed.
 Consultant will incorporate comments from SANDAG staff and interested stakeholders into a final version of the feasibility study.

Task 3 Deliverables
 Draft Feasibility Study
 Host meetings to discuss draft Feasibility Study
 Finalize Feasibility Study

4. Off-Shore Borrow Site
10 April 17, 2023 Item 07
Exhibit A – Scope of Work
 Conduct a literature review of offshore investigations completed for Regional Beach Sand Projects I and II (RBSP I and RBSP II) to identify any additional candidate borrow sites in the northern portion of San Diego County that could be utilized to implement a future beach nourishment project.
 Prepare a plan and scope of work to conduct an investigation of a minimum of three offshore borrow sites to determine the outer boundaries of the two offshore borrow sites used for RBSP II (MB-1 and SO-5) and at least one new borrow site in the northern portion of San Diego County. Once completed, these surveys will help to estimate the quantity of sand available for beach nourishment on the San Diego coastline.

Task 4 Deliverable
 Perform Off-Shore Borrow Site existing data review
 Prepare Off-Shore Borrow Site Plan and Scope of Work for Three Sites 11 April 17, 2023 Item 07
Exhibit B – Budget Schedule
Regional Beach Sand Project III (RBSPIII) Feasibility Study & Economic Analysis Task Name Description Budget State Date End Date
1 Project Management and
Administration
SANDAG to monitor Project
Management and Administration $10,000.00
2 Economic Analysis Subconsultant to prepare an updated Economic Analysis $50,000.00
3 Regional Beach Sand
Replenishment Project (RBSP III)
Feasibility Study
Draft RBSP III Feasibility Study,
Review, and Finalize $100,000.00
4 Off-shore Borrow Site
Subconsultant will prepare an
Offshore Borrow Site Plan and Scope
of Work for Three Sites
$40,000.00
Total $200,000 NTP
12 April 17, 2023 Item 07
Exhibit C – Project Schedule
Regional Beach Sand Project III (RBSPIII) Feasibility Study & Economic Analysis Task Name Description State Date End Date
1 Project Management and
Administration
SANDAG to monitor Project
Management and Administration NTP
2 Economic Analysis Subconsultant to prepare an updated Economic Analysis NTP
3 Regional Beach Sand
Replenishment Project (RBSP III)
Feasibility Study
Draft RBSP III Feasibility Study,
Review, and Finalize NTP
4 Off-shore Borrow Site
Subconsultant will prepare an
Offshore Borrow Site Plan and Scope
of Work for Three Sites
NTP
13 April 17, 2023 Item 07
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:

TO: Honorable Mayor and City Council Members
FROM: Jon Edelbrock, Director of Community Services and Chief Lifeguard Via Ashley Jones, City Manager
DATE: April 17, 2023
SUBJECT: Approval of Agreement for Parking and Administrative Citation Processing Services
REQUESTED ACTION/RECOMMENDATION:

Staff recommends that the City Council: 1) Approve a professional services agreement with Phoenix Group Information Services (Attachment A) to provide parking and administrative citation processing services for an initial five-year period effective May 1, 2023 and ending May 1, 2028; and 2) Authorize the City Manager to execute the agreement.

DISCUSSION/ANALYSIS:

The City contracts with an outside third-party provider for municipal parking and administrative citation processing services, which is currently provided by Phoenix Group Information Systems (Phoenix Group).

Services provided under the contract include processing written and electronic parking and administrative citations; providing Registered Owner data retrieval services; provide payment processing via mail, phone, and the internet; corresponding both verbally and in written form with individuals in receipt of a citation; storage, back-up, and reporting of all City citation data; electronic handheld citation writing units including software, licensing fees, and support; adjudication services including appeal, review, hearings, and online protest capability; agency and public internet access; and collection services.

To ensure that the City continues to receive high quality services at competitive rates, the City issued a Request for Qualifications (RFQ 2023-01) on January 10, 2023, soliciting proposals from qualified firms to provide parking and administrative citation processing services. Five firms submitted proposals in response to the RFQ, including: Ace Parking (Ace); Data Ticket, Inc. (Data Ticket); IPS Group, Inc. (IPS); Phoenix Group Information Services (Phoenix Group); and T2 Systems (T2), Inc.
1 April 17, 2023 Item 08
City Council Agenda Report
Agreement for Parking and Administrative Citation Processing Services April 17, 2023

The proposals were carefully evaluated by City staff based on experience and qualifications. Proposed costs and fees were also evaluated to ensure they were in line with current market rates for the services to be provided and to provide a comparison of costs between firms that submitted proposals The new fee schedule includes no increased fees for services currently utilized by the City. Per request from the RFQ that was issued, Phoenix Group included additional costs and fees for optional services and equipment should the City wish to add those during the agreement term. For example, the City continues to evaluate mobile enforcement options like License Plate Readers (LPR). Costs related to LPR integration including software licensing and training are included in the agreement yet are optional to add.

Based on the review of the proposals submitted by the responsive firms, staff determined that Phoenix Group, the City’s current service provider, is the most qualified firm to meet the City’s current and future needs. Phoenix Group has a proven track record of providing a high level of service to the City of Del Mar and over 250 other clients. They offer highly competitive rates and continue to be industry experts with a unique understanding of the City’s operations. Additionally, City staff are well-versed in working with Phoenix Group’s technology and staff which eliminates the need for training on new systems and operations of a third-party vendor. Staff recommends that the City Council approve the Agreement (Attachment A) with Phoenix Group for an initial five-year period beginning May 1, 2023, and ending May 1, 2028, with the option to extend the agreement upon satisfactory service for an additional five-year period.

Staff will work closely with Phoenix Group to continue to evaluate the market, available technology, and parking related legislation to best determine needs that may arise during the duration of the agreement.

FISCAL IMPACT:

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

Sufficient funds for parking and administrative citation processing services are available in the adopted Fiscal Year 2022-2023 Operating and Capital Budget. Funds for these services will also be included in future fiscal year operating and capital budgets for Council consideration.

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 is not included in the City Council’s list of Goals & Priorities.
2 April 17, 2023 Item 08
City Council Agenda Report
Agreement for Parking and Administrative Citation Processing Services April 17, 2023

ATTACHMENTS:

Attachment A – Agreement with Phoenix Group Information Systems 3 April 17, 2023 Item 08

ATTACHMENT A

PROFESSIONAL SERVICES AGREEMENT BETWEEN

THE CITY OF DEL MAR AND PHOENIX GROUP INFORMATION SYSTEMS

FOR PARKING AND ADMINISTRATIVE CITATION PROCESSING SERVICES This Professional Services Agreement (“Agreement”) is made and entered into this 17th day of April, 2023 by and between the City of Del Mar, a Charter City and a municipal corporation (“City”), and Phoenix Group Information Systems (“Consultant”) (collectively “Parties”).

WHEREAS, the City desires to contract with an outside firm to provide parking and administrative citation processing services (“Consulting Services”). Said work is to be performed in accordance with the terms and conditions set forth below and as described in the scope of services, attached hereto as Exhibit “A” and incorporated herein; and WHEREAS, the City has determined that Consultant is qualified by experience and ability to perform the services desired by City, and Consultant is willing to perform such services; and WHEREAS, Consultant will conduct all the work as described and detailed in this Agreement to be provided to the City.

NOW, THEREFORE, the Parties hereto mutually covenant and agree with each other as follows:

1. CONSULTING SERVICES.

1.1 Scope of Services. The Consultant shall perform the Consulting Services as set forth in the written Scope of Services, attached hereto as Exhibit “A” and incorporated herein. Such services shall be provided at the direction of the City.

1.2. City Modification of Scope of Services. City may order changes to the Scope of Services within the general scope of this Agreement consisting of additions, deletions, or other revisions. If such changes cause a change in the Consultant’s cost of, or time required for, completion of the Scope of Services, an equitable adjustment to Consultant’s compensation and/or contract time shall be made, subject to the City’s approval. All such changes shall be authorized in writing, executed by Consultant and City. If such a change results in an extension of the term of this Agreement or increases the maximum amount to be paid under this Agreement, no such change shall have any force or effect unless an amendment to this Agreement is approved by the City Council.

2. DURATION OF AGREEMENT.

2.1 Term, Time for Performance. This Agreement shall be effective for a period of five (5) years beginning on May 1, 2023 and ending on May 1, 2028. The agreement may be extended for an additional five (5) year period, upon written approval of both parties.

Time is of the essence for this Agreement and each provision of this Agreement, unless otherwise specified in this Agreement.
4 April 17, 2023 Item 08

2.2 Delay. Any delay occasioned by causes beyond the control of Consultant may merit an extension of time for the completion of the Scope of Services. When such delay occurs, Consultant shall immediately notify the Project Coordinator in writing of the cause and the extent of the delay, whereupon the Project Coordinator shall ascertain the facts and the extent of the delay and grant an extension of time for the completion of the Consulting Services when justified by the circumstances provided that no extension of time shall be granted which would extend the time for performance beyond the date specified in section 2.1 above.

2.3 City’s Right to Terminate for Default. Should Consultant be in default of any covenant or condition hereof, City may immediately terminate this Agreement for cause if Consultant fails to cure the default within ten (10) calendar days of receiving written notice of the default.

2.4 City’s Right to Terminate without Cause. Without limiting its rights in the event of Consultant’s default, City may terminate this Agreement, without cause, by giving written notice to Consultant. Such termination shall be effective upon receipt of the written notice.

Consultant shall be compensated for all effort and material expended on behalf of City under the terms of this Agreement, up to the effective date of termination. All personal property remaining in City facilities or on City property thirty (30) days after the expiration or termination of this Agreement shall be, at City’s election, considered the property of City.

3. PERFORMANCE AFTER TERMINATION. Upon termination of this Agreement as provided herein, Consultant shall, within such reasonable time period as may be directed by City Manager, complete those items of work which are in various stages of completion and which City Manager determines are necessary to be completed by Consultant to allow the project to be completed in a timely, logical, and orderly manner. Upon termination, all finished or unfinished documents, data, studies, surveys, drawings, models, photographs, reports, and other materials prepared by Consultant shall be delivered to the City Manager, upon his request, as property of City.

4. COMPENSATION.

4.1 Total Amount. Compensation to Consultant shall be provided in accordance with the rates described in the Scope of Services contained in Exhibit “B” Consultant shall bill the City for work provided and shall present a written request for such payment monthly.

City shall pay all invoices in arrears and shall in no event be required to pay for any services provided by Consultant in advance. Consultant acknowledges that it is not guaranteed any particular amount of work.

4.2 Additional Services. City may, as the need arises or in the event of an emergency, request additional services of Consultant. Should such additional services be required, Compensation therefore shall be paid to the Consultant in accordance with Scope of Services contained in Exhibit “A.” City and Consultant shall agree to the costs prior to commencement of such work.

5. INDEPENDENT CONTRACTOR. Consultant is, for all purposes arising out of this Agreement, an independent contractor. The Consultant has and shall retain the right to exercise full control and supervision of all persons assisting the Consultant in the performance of said services hereunder, the City only being concerned with the finished results of the work being performed. Neither Consultant nor Consultant’s employees shall in any event be entitled to any 5 April 17, 2023 Item 08
benefits to which City employees are entitled, including, but not limited to, overtime, any retirement benefits, workers’ compensation benefits, any injury leave or other leave benefits, Consultant being solely responsible for all such matters, as well as, compliance with social security and income tax withholding and all other regulations and laws governing such matters.

6. STATEMENT OF EXPERIENCE. Consultant agrees that it has the financial resources, service experience, completion ability, personnel, and experience in dealing with public agencies necessary for performing the Scope of Services and that such performance shall be in accordance with the standards customarily adhered to by an experienced and competent Consultant using the degree of care and skill ordinarily exercised by reputable Consultants practicing in the same field of service in the State of California. By executing this Agreement, Consultant represents that it has demonstrated trustworthiness and possesses the quality, fitness, and capacity to perform the Agreement in a manner satisfactory to City. Additionally, Consultant and all of Consultant’s employees or agents shall secure and maintain in force such permits and licenses as are required by law in connection with the furnishing of services pursuant to this Agreement.

7. AUDIT OF RECORDS.

7.1 At any time during normal business hours and as often as may be deemed necessary, the Consultant shall make available to a representative of City for examination all of its records with respect to all matters covered by this Agreement and shall permit City to audit, examine, and/or reproduce such records. Consultant shall retain such financial and program service records for at least four (4) years after termination or final payment under this Agreement.

7.2 The Consultant shall include the City’s right to audit under this section in any and all of their subcontracts, and shall ensure that these sections are binding upon all subcontractors.

8. CONFIDENTIALITY. All Consulting services performed by Consultant, including, but not limited to, all drafts, data, correspondence, proposals, reports, research and estimates compiled or composed by Consultant, pursuant to this Agreement, are for the sole use of the City, its agents and employees. Neither the documents nor their contents shall be released to any third party without the prior written consent of the City. This provision does not apply to information that (a) was publicly known, or otherwise known to Consultant, at the time that it was disclosed to Consultant by the City, (b) subsequently becomes publicly known through no act or omission of Consultant or (c) otherwise becomes known to Consultant other than through disclosure by the City. Except for any subcontractors that may be allowed upon prior agreement, neither the documents nor their contents shall be released to any third party without the prior written consent of the City. The sole purpose of this section is to prevent disclosure of City’s confidential and proprietary information by Consultant or subcontractors.

9. CONFLICTS OF INTEREST.

9.1 Consultant shall at all times comply with all federal, state and local conflict of interest laws, regulations, and policies applicable to public contracts and procurement practices, including, but not limited to, California Government Code §§ 81000 et seq. (Political Reform Act) and §§ 1090 et seq. Consultant shall immediately disqualify itself and shall not use 6 April 17, 2023 Item 08
its official position to influence in any way any matter coming before the City in which the Consultant has a financial interest as defined in Government Code § 87103. Consultant represents that it has no knowledge of any financial interests, which would require it to disqualify itself from any matter on which it might perform services for the City.

9.2 Consultant shall comply with all of the reporting requirements of the Political Reform Act. The Consultant shall file a Fair Political Practices Commission Form 700 (Assuming Office Statement) within thirty (30) calendar days of the City’s determination that the Consultant is subject to a conflict of interest code, if applicable. The Consultant shall also file a Form 700 (Annual Statement) on or before April 1, disclosing any financial interests held during the previous calendar year for which the Consultant was subject to a conflict of interest code.

9.3 If, in performing the Consulting Services set forth in this Agreement, the Consultant makes, or participates in, a “governmental decision” as described in Title 2, section 18701(a)(2) of the California Code of Regulations, or performs the same or substantially all the same duties for the City that would otherwise be performed by a City employee holding a position specified in the department's conflict of interest code, the Consultant shall be subject to a conflict of interest code requiring the completion of one or more statements of economic interests disclosing the Consultant’s relevant financial interests.

10. OWNERSHIP OF DOCUMENTS. All documents, data, studies, drawings, maps, models, photographs and reports prepared by Consultant under this Agreement shall be considered the property of City. Consultant shall be permitted to reference and use said materials for use in future studies, work, and marketing so long as said materials are considered “public documents” and are not subject to attorney-client privilege, or the subject of pending closed or executive session discussions.

11. INSURANCE

11.1 Consultant shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Consultant, their agents, representatives, employees or subcontractors. Insurance shall be placed with insurers with a current A.M. Best’s rating of no less than “A” and “VII” and are admitted to do business in the State of California, unless otherwise approved in writing by the City’s Risk Manager.

11.2 Consultant’s liabilities, including but not limited to Consultant’s indemnity obligations, under this Agreement, shall not be deemed limited in any way to the insurance coverage required herein. All policies of insurance required hereunder must provide that the City is entitled to thirty (30) days prior written notice (ten (10) days for cancellation due to non-payment of premium) of cancellation or non-renewal of the policy or policies. Maintenance of specified insurance coverage is a material element of this Agreement.

11.3 Types and Amounts Required. Consultant shall maintain, at minimum, the following insurance coverage for the duration of this Agreement:

11.3.1 Commercial General Liability (CGL). Insurance written on an ISO Occurrence form CG 00 01 07 98 or equivalent providing coverage at least as broad which shall cover liability arising from any and all personal injury or property damage in the amount of $1,000,000 per occurrence and subject to an annual aggregate of $2,000,000. There shall be no 7 April 17, 2023 Item 08
endorsement or modification of the CGL limiting the scope of coverage for either insured vs. insured claims or contractual liability. All defense costs shall be outside the limits of the policy.

11.3.2 Commercial Automobile Liability. For all of the Consultant's automobiles including owned, hired and non-owned automobiles, automobile insurance written on an ISO form CA 00 01 12 90 or a later version of this form or an equivalent form providing coverage at least as broad for bodily injury and property damage for a combined single limit of $300,000 per occurrence. Insurance certificate shall reflect coverage for any automobile (any auto).

11.3.3 Workers' Compensation. For all of the Consultant's employees who are subject to this Agreement and to the extent required by applicable state or federal law, a Workers' Compensation policy providing at minimum $1,000,000 employers' liability coverage.

The Consultant shall provide an endorsement that the insurer waives the right of subrogation against the City and its respective elected officials, officers, employees, agents and representatives.

11.3.4 Consulting Liability. Consulting liability (errors and omissions) coverage with a limit of $1,000,000 per claim and $2,000,000 annual aggregate. The Consultant shall ensure both that (1) the policy retroactive date is on or before the date of commencement of the Scope of Services; and (2) the policy will be maintained in force for a period of three years after substantial completion of the Scope of Services or termination of this Agreement whichever occurs last. The Consultant agrees that for the time period defined above, there will be no changes or endorsements to the policy that increase the City's exposure to loss. All defense costs shall be outside the limits of the policy.

11.4 Deductibles and Self-Insured Retentions. Any deductibles or selfinsured retentions are the responsibility of the Consultant and must be declared to and approved by the City. At the option of the City, either (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, officials, employees, and volunteers, or (2) the Consultant shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses.

11.5 Additional Required Provisions. The commercial general liability and automobile liability policies shall contain, or be endorsed to contain, the following provisions:

11.5.1 The City, its officers, officials, employees, and representatives shall be named as additional insureds. The City's Additional Insured status must be reflected on additional insured endorsement form which shall be submitted to the City.

11.5.2 The policies are primary and non-contributory to any insurance that may be carried by the City, as reflected in an endorsement which shall be submitted to the City.

11.6 Verification of Coverage. Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this Section 11. The endorsement should be on forms provided by the City or on other than the City’s forms provided those endorsements conform to City requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time.
8 April 17, 2023 Item 08

12. DEFENSE AND INDEMNIFICATION.

12.1 Consultant agrees to indemnify, defend (with attorneys approved by City), and hold harmless the City, and its officers, officials, agents and employees (the “Indemnified Parties”) from any and all claims, demands, costs or liability that arise out of, or pertain to, or relate to the Consultant, its employees, agents, and subcontractors performance of services under this Agreement. Consultant’s duty to indemnify under this section shall not include liability for damages for death or bodily injury to persons, injury to property, or other loss, damage or expense arising from the sole negligence or willful misconduct by the City or its elected officials, officers, agents, and employees. Consultant's indemnification obligations shall not be limited by the insurance provisions of this Agreement. The Parties expressly agree that any payment, attorney's fees, costs or expense City incurs or makes to or on behalf of an injured employee under the City's self-administered workers' compensation is included as a loss, expense, or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement.

12.2 This indemnity is in addition to any other rights or remedies which City may have under the law or this Agreement. In the event of any claim or demand made against any party which is entitled to be indemnified hereunder, City may, at its sole discretion, reserve, retain or apply any monies due to Consultant under this Agreement for the purpose of resolving such claims; provided however, that City may release such funds if Consultant provides City with reasonable assurances of protection of the City's interest. The City shall, in its sole discretion determine whether such assurances are reasonable.

12.3 Consultant agrees that its duty to defend arises upon an allegation of liability based upon the performance of services under this Agreement by Consultant, its officers, agents, representatives, employees, sub-consultants, or anyone for whom Consultant is liable and that an adjudication of Consultant’s liability is not a condition precedent to Consultant's duty to defend.

13. SUBCONTRACTORS.

13.1 The Consultant’s hiring or retaining of third parties (i.e. subcontractors) to perform services related to the Project is subject to prior approval by the City.

13.2 All contracts entered into between the Consultant and its subcontractor shall also provide that each subcontractor shall obtain insurance policies, which shall be kept in full force and effect during any and all work on this Project and for the duration of this Agreement.

The Consultant shall require the subcontractor to obtain all policies described in section 11 of this Agreement in the amounts required by the City, which shall not be greater than the amounts required of the Consultant.

13.3 In any dispute between the Consultant and its subconsultants, the City shall not be made a party to any judicial or administrative proceeding to resolve the dispute. The Consultant agrees to defend and indemnify the City as described in section 12 of this Agreement should the City be made a party to any judicial or administrative proceeding to resolve any such dispute or should the City incur any costs in responding to third-party discovery requests. 9 April 17, 2023 Item 08

14. NON-DISCRIMINATION. Consultant shall not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, ancestry, physical or mental disability, medical condition, genetic information, marital status, military or veteran status, gender, gender identity, gender expression, sexual orientation, or any other class protected under state, federal, or local law. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to any class or category protected under state, federal, or local law and shall make reasonable accommodation to qualified individuals with disabilities. Such action shall include, but not be limited to, the following: employment, upgrading, demotion, transfer, recruitment, or recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship. Consultant agrees to post in conspicuous places available to employees and applicants for employment any notices provided by City setting forth the provisions of this non-discrimination clause.

15. NOTICES. All communications to either party by the other party shall be delivered to the persons listed below. Any such written communications by mail shall be conclusively deemed to have been received by the addressee five (5) calendar days after the deposit thereof in the United States Mail, postage prepaid and properly addressed as noted below.

If to City: If to Consultant:

City of Del Mar Phoenix Group Information Systems
City Clerk C/O Claire Murphy
1050 Camino del Mar 2677 N. Main Street, Suite 440
Del Mar, CA 92014 Santa Ana, CA 92705
16 ASSIGNABILITY. This Agreement and any portion thereof shall not be assigned or transferred, nor shall any of the Consultant’s duties be delegated or sub-contracted, without the express written consent of the City.

17. RESPONSIBILITY FOR EQUIPMENT. City shall not be responsible nor held liable for any damage to persons or property consequent upon the use, misuse, or failure of any equipment used by Consultant or any of Consultant’s employees or subcontractors, even if such equipment has been furnished, rented, or loaned to Consultant by City. The acceptance or use of any such equipment by Consultant, Consultant’s employees, or subcontractors shall be construed to mean that Consultant accepts full responsibility for and agrees to exonerate, indemnify and hold harmless City from and against any and all claims for any damage whatsoever resulting from the use, misuse, or failure of such equipment.

18. CALIFORNIA LAW; VENUE/MISC. This Agreement shall be construed and interpreted according to the laws of the State of California. Any action brought to enforce or interpret any portion of this Agreement shall be brought in the county of San Diego, California.

Consultant hereby waives any and all rights it might have pursuant to California Code of Civil Procedure section 394.

19. COMPLIANCE WITH LAWS. The Consultant shall comply with all laws, ordinances, regulations, and policies of the federal, state, and local governments applicable to this Agreement, including California Labor Code section 1720, et seq., relating to payment of prevailing wages for public works projects, if applicable. Consultant shall indemnify and defend the Indemnified Parties from and against any liability incurred due to any failure on the part of Consultant to comply with any applicable Laws.
10 April 17, 2023 Item 08
To the extent Consultant is required to comply with prevailing wage requirements, Consultant does hereby acknowledge that they are aware of, have read, and understand the terms and implications of SB 854 and Consultant and any subconsultants ensure that they are familiar with and comply with its requirements. Such requirements include, but are not limited to, the registration requirement with the Department of Industrial Relations, State of California (DIR), pursuant to Labor Code section 1725.5. As of March 1, 2015, in compliance with SB 854, the City requires all affected contractors and consultants to be registered with the DIR prior to submitting a bid or proposal on any eligible District project. As of April 1, 2015, failure to comply with the requirements of SB 854 by any contractor or consultant, including registration with the DIR pursuant to Labor Code section 1725.5, shall be a material breach of this Agreement which may be terminated by the City in its sole and absolute discretion. Where applicable, this project is subject to compliance monitoring and enforcement by the DIR.

20. CONSULTANT’S CERTIFICATION OF AWARENESS OF IMMIGRATION REFORM AND CONTROL ACT OF 1986. Consultant certifies that Consultant is aware of the requirements of the Immigration Reform and Control Act of 1986 (8 USC §§ 1101-1525) and has complied and will comply with these requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors, and consultants that are included in this Agreement.

21. ENTIRE AGREEMENT. This Agreement sets forth the entire understanding of the Parties with respect to the subject matters herein. There are no other understandings, terms or other agreements expressed or implied, oral or written, except as set forth herein.

22. AMENDMENTS. This Agreement may be modified or amended only by a written document executed by both Consultant and City and approved as to form by the City Attorney.

No change, alteration, or modification of the terms or conditions of this Agreement, and no verbal understanding of the Parties, their officers, agents, or employees shall be valid unless agreed to in writing by both Parties.

23. NO WAIVER. No failure of either the City or the Consultant to insist upon the strict performance by the other of any covenant, term or condition of this Agreement, nor any failure to exercise any right or remedy consequent upon a breach of any covenant, term, or condition of this Agreement shall constitute a waiver of any such breach of such covenant, term or condition.

24. SEVERABILITY. The unenforceability, invalidity, or illegality of any provision of this Agreement shall not render any other provision unenforceable, invalid, or illegal.

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

26. LEGAL FEES. In the event of the bringing of any action or suit by either party hereto against the other party hereunder to enforce or interpret any of the provisions, covenants or conditions of this Agreement, or arising out of any tortuous conduct by either party incident to this Agreement, the prevailing party in such action or suit shall be entitled to recover all costs and expenses of suit, including reasonable attorneys' fees. In any action or suit brought to enforce this 11 April 17, 2023 Item 08
Agreement, the damages available shall be limited to specific performance or other such equitable relief that the court may order.

27. CONFLICTS BETWEEN TERMS. If an apparent conflict or inconsistency exists between the main body of this Agreement and the Exhibits, the main body of this Agreement shall control. If a conflict exists between an applicable federal, state, or local law, rule, regulation, order, or code and this Agreement, the law, rule, regulation, order, or code shall control. Varying degrees of stringency among the main body of this Agreement, the Exhibits, and laws, rules, regulations, orders, or codes are not deemed conflicts, and the most stringent requirement shall control. Each Party shall notify the other immediately upon the identification of any apparent conflict or inconsistency concerning this Agreement.

28. EXHIBITS INCORPORATED. All Exhibits referenced in this Agreement are incorporated into the Agreement by this reference.

29. SIGNING AUTHORITY. The representative for each Party signing on behalf of a corporation, partnership, joint venture, or governmental entity hereby declares that authority has been obtained to sign on behalf of the corporation, partnership, joint venture, or entity and agrees to hold the other Party or Parties hereto harmless if it is later determined that such authority does not exist.
12 April 17, 2023 Item 08
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement the day and year first hereinabove written.

CITY OF DEL MAR,
a municipal corporation
By: ____________________________
Ashley Jones, City Manager

PHOENIX GROUP INFORMATION

SERVICES
By: _______________________
Robert Murphy, President

ATTEST:
________________________________
Nestor Machado, Acting City Clerk
APPROVED AS TO FORM:
_______________________________
Leslie E. Devaney, City Attorney
13 April 17, 2023 Item 08
EXHIBIT “A”

SCOPE OF SERVICES
Citation Processing Services:
 Data entry of manually entered citations performed within 24 hours of receipt.  Quality assurance verification of manually entered citations.  Scanning of all manually written citations into our network for storage and ease of retrieval.
 Bi-monthly shredding of manually written citations.
 Electronic transfer of all electronically written citations, recordings, videos, and photographs.

Delinquent Noticing:
 Semi-custom notice that is printed on an 8½” x 11” piece of paper with a perforated tear-off payment stub provided in a windowed envelope.
 All notices are attached to the citation online and are viewable via the web.  All notices sent via First-Class Mail®, postage included.  All notices include a return envelope in which the responsible party may submit payment.

Delinquent Collections:
 This fee will be assessed, assuming a First Notice has been sent to the responsible party and the citation is not on hold for any reason.
 All notices are sent via First-Class Mail and all notices are printed on an 8½” x 11” sheet of paper and folded into a windowed envelope; in addition, a windowed envelope is provided for the recipient to return payment.  All notices are attached to the citation online and are viewable via the web.  If PHX does not collect on a citation that is delinquent, the CITY does not owe this fee.  Notices will be sent via First-Class Mail, and PHX will be responsible for the cost incurred and all customer service.

Franchise Tax Board Processing:
 SSN Look-Up: This fee will be assessed to lookup a Social Security Number (SSN) associated with a particular responsible party and address. This charge is charged per unique SSN, not per citation
 FTB Collections: This fee is charged if a citation is paid at the Franchise Tax Board.  This charge is not combined with any other charge; for example, if a citation is rolled to delinquent status and paid at FTB, only the 15% of revenue collected will be charged.

Collections:
 This fee is charged if a citation is paid at collections  This charge is not combined with any other charge; for example, if a citation is rolled to delinquent status and paid at collections, only the 23% of revenue 14 April 17, 2023 Item 08
collected will be charged.

Adjudication Services:
 Scanning and scheduling of hearing.
 PHX will review all documentation received by the appellant and determine whether the request is received within the required timeframe.  If the request was received within the required timeframe, PHX’s Adjudication Department will place the citation on an Administrative Hearing Request Hold and scan all received documentation into the solution where it is displayed on the web for the CITY’s staff and the hearing officer.
 If the request is received outside the required timeframe, the CITY will have the option to proceed as
though the request was received within the timeframe or it may elect to have PHX send a “time expired letter” rejecting the appeal.
 PHX will work with the designated hearing officer to schedule the hearing based on either a pre- determined schedule or an ad hoc basis, depending on the CITY’s schedule.

Hearing Schedule & Disposition Letters:
 PHX will send a custom disposition letter to the appellant via First-Class Mail.  All letters are attached to the citation online and are viewable via the web.  Disposition letters will be sent Monday – Friday.

Online Access for the CITY’s customers/public:
 View real-time citation data.
 Pay for a single citation or multiple citations.
 Accept payment via VISA®, MasterCard®, Discover®, and American Express® credit/debit cards.
 Request a hearing online and attach up to three supporting documents.  Print a receipt.
 View pictures of the citation taken by the issuing officer (if the CITY allows).

Online Access for the CITY’s staff:
 Access to the CITY’s data based on unique usernames and passwords assigned to everyone who requires access to the system. PHX does not limit the number of individuals who have access to the system and the number and types of access can change at any point with a simple email request to PHX.  Our solution is setup to maintain a complete audit trail for each transaction in the system so that the username is displayed next to every transaction in the system, indicating who performed the transaction and when. Dependent on the access rights provided to each CITY staff member, the following capabilities are available:
 View real-time citation data, including pictures taken by the issuing officer.  Accept payment via VISA, MasterCard, Discover, and American Express credit/debit cards.
15 April 17, 2023 Item 08
 Accept payment via cash, check, or money order.
 Process NSFs, chargebacks, and refunds.
 Reduce or increase violation amounts, dismiss citations, void citations, and place a citation on hold.
 Change citation data, including violations, date, time, location, comments, and others.
 Generate a time expired or letter of non-responsibility for a citation in the adjudication process.
 View the complete reason for the hearing request and supporting documentation provided by the appellant directly online.  Edit appellant information.
 Upload disposition documents sent to the CITY via the United States Postal Service (USPS).
 Add a note to a citation and see all comments added to the citation.  View the reason for the Second-Level Administrative Hearing Request online and view the supporting documentation provided by the appellant, directly online.
 Print a receipt with or without responsible party information.

Reporting:
 PHX offers 24 reports online for our clients to generate, print, and re-print 24/7.

We provide real-time reports that can be generated for any timeframe required and we provide pre-processed and month-end reports that reflect the month-end view of data.
 All reports are available online through our WINCITE software solution.  All reports generated are available in both Portable Document Format (PDF) and Microsoft Excel®format.

Manual Payment Processing:
 Manually received payments (checks, cash, money orders, and credit card payments sent via USPS) are received at our Post Office Box in Santa Ana, where a bonded and insured courier picks up the mail daily and delivers it to our Santa Ana office.  On-site Mail Department opens, sorts, and batches the payments before providing them to our on-site Data Entry Department.
 After double-blind entry of each payment, the citations are updated by our Quality Assurance Team.
 Payments are then provided to our Accounting Department where daily deposit slips are completed and provided to a bonded, insured courier who takes them to the bank.

Customer Service:
 PHX provides a live, bilingual, on-site Customer Service Department that is fully trained to answer questions related to citation issuance, payment, adjudication, FTB, and collections.
16 April 17, 2023 Item 08
 All calls are recorded for quality assurance and recordings can be sent to the CITY at any time for review.
 PHX’s IVR is bilingual and accessible via several toll-free numbers; the IVR provides real-time information to the caller regarding current status, including the amount due.
 The IVR accepts VISA, MasterCard, Discover, and American Express.

Web Presence:
 PHX Solution is 100% web-based: paymycite.com/delmar; this is a custom website for the CITY for complete transparency. This website allows for the CITY and the CITY’s customers to access citations online.
 PCI complaint with a TLS1.2 encryption level. McAfee® Secure™, Trustwave®.  Web Content Accessibility Compliance: WCAG20- 20081211/ Level AA, Section 508. 17 April 17, 2023 Item 08
EXHIBIT “B”

FEE SCHEDULE
PARKING CITATION PROCESSING AND COLLECTIONS – PRICING
Item Description Cost
Monthly Fee
Parking citation cloud-based database access, custom website, live on-site bilingual customer service, reports, adjudication services, DMV Registered Owner Lookup, DMV holds and releases, payment plans, monthly revenue reconciliation, unlimited CITY user access, training (all sessions can be recorded) – INCLUDED!

FREE OF
CHARGE
Citation Processing Cost per electronic and handwritten parking citation processed. $0.40 Out-of-State Citations Out-of-State processing includes any costs charged by the state for the registered owner. The percentage is only for citations that are collected. $0.25 Notice of Violation /
Delinquent Notice
A notice of violation (delinquent notice) is sent after an individual receives an initial citation as a courtesy reminder. If applicable, a second notice of delinquency is sent if the payment is not made by the initial due date -

INCLUDED

FREE OF
CHARGE
Payment Processing Cost per payment processed. $0.40
Postage Current First-Class Mail® rates will be charged for all correspondence mailed. CITY will be notified of any postal increase.

First-Class Mail®
rates vary
Bank Management Includes all related costs for bank account and reconciliation of funds and supplies -INCLUDED

FREE OF
CHARGE
Credit Card Payments
A credit card processing fee of $4.95 or 4.25%, whichever is greater, will be charged to the individual at no cost to the CITY -

INCLUDED

FREE OF
CHARGE
Credit Card Chargebacks If a chargeback occurs, the citation is re-opened, and the administrative fee is added – pass though cost for the CITY.

Pass-Through
Cost to CITY
Special Custom Letter
Special letters are custom notices used as follow-ups for hearing dates, review results, hearing results, habitual violations (scofflaw), and preintercept letters. $1.00
Refunds
Bank account must be accessed and controlled by PHX. The CITY will approve in writing each refund in advanced of disbursement. (Optional Service)
$5.00
Preliminary Collections If bail amount is recovered after 90 days. 23% FTB Collections Activated based on age of collections. Percentage is based on bail amount collected.
15% + $1.75
Per SSN# Lookup
CBA Collections Collection Bureau of America for out-of-state collections. Percentage is based on bail amount collected. 35%
18 April 17, 2023 Item 08
Hearing Officer Hourly consulting fee for third-party adjudication services. $120.00/hr.

AB503 Compliance
Annual fee for the creation, processing, and monitoring of all payment plans in compliance with Assembly Bill 503 and online applications.

Payment plan setup, letter to indigent applicants, monitoring of plans, late fees in abatement, removed from DMV hold.
$10.00 per plan
Online Contesting Monthly service charge – includes database storage. $250.00 Training
Full training of WINCITE™ software for CITY staff. All training sessions can be digitally recorded and given to the CITY for future use and reference. A video will be provided for future training purposes -

INCLUDED

FREE OF
CHARGE
ADMINISTRATIVE CITATION PROCESSING AND COLLECTIONS – STRUCTURE OPTION 1 PRICING Item Description Cost
Monthly Fee
Includes all the following: web access, custom website payments and contesting (www.paymycite.com), customized toll-free phone number for payments & customer service, reports, payment plan setups. online contesting, adjudication services: adjudication holds and scanning, disposition entry, payment processing, credit card payments (the credit card convenience fee is charged to the public), and customer service.

Phoenix Group has toll-free numbers for both technical support and client/customer service support. We have a Help-Desk Line so our clients can reach us immediately and all of their concerns can be addressed.

Phoenix Group has a Live Chat in real-time accessible to the CITY through WINCITE.

FREE OF
CHARGE
Citation Processing Cost per electronic and handwritten parking citation processed. $8.00 Notice of Violation
A notice of violation (delinquent notice) is sent after an individual receives an initial citation as a courtesy reminder. If applicable, a second notice of delinquency is sent if the payment is not made by the initial due date - INCLUDED

FREE OF
CHARGE
Payment Processing Cost per payment processed. $0.40
Postage Current First-Class Mail® rates will be charged for all correspondence mailed. CITY will be notified of any postal increase.

First-Class Mail®
rates vary
Bank Management Includes all related costs for bank account and reconciliation of funds and supplies -INCLUDED

FREE OF
CHARGE
Credit Card Payments
A credit card processing fee of $4.95 or 4.25%, whichever is greater, will be charged to the individual at no cost to the CITY -

INCLUDED

FREE OF
CHARGE
Credit Card Chargebacks If a chargeback occurs, the citation is re-opened, and the administrative fee is added – pass though cost for the CITY.

Pass-Through
Cost to CITY
19 April 17, 2023 Item 08
Special Custom Letter
Special letters are custom notices used as follow-ups for hearing dates, review results, hearing results, habitual violations (scofflaw), and preintercept letters. $1.00
Refunds
Bank account must be accessed and controlled by PHX. The CITY will approve in writing each refund in advanced of disbursement. (Optional Service)
$5.00
Preliminary Collections Contingency fee only charged if bail amount is collected. 23% FTB Collections Activated based on age of collections. Percentage is based on bail amount collected.
15% + $1.75
Per SSN# Lookup
CBA Collections Collection Bureau of America for out-of-state collections. Percentage is based on bail amount collected. 35%
Hearing Officer Hourly consulting fee for third-party adjudication services. $120.00/hr.

MOBILE ENFORCEMENT - STRUCTURE OPTION 1 PRICING
Item Description Cost
Samsung® Galaxy™
Device
Smartphone device with Android® operating system, with militarygrade protective case. Cost per unit. TBD WICITE Mobile Pro™ Software
License Unlimited site license for parking enforcement, one-time charge per unit.
$695.00
WINCITE ACE™ Software
License
Unlimited site license for administrative code enforcement, onetime charge per unit. $695.00 Software Installation &
Configuration One-time charge per unit, per application. $100.00 TSC® ALPHA-3R™ Bluetooth® enabled thermal citation printer with protective environmental case and included 2-year warranty. Cost per unit. $780.00 Hardware & Software Support Monthly charge per unit. Can be optionally charged annually. $60.00 LPR Real-Time
Accessibility Monthly charge per unit - INCLUDED FREE OF CHARGE
License Plate Recognition
(LPR) Software License &
Activation
One-time fee per device. *This service charge of $3,995.00 per unit was waived and included at no cost.

FREE OF
CHARGE
Training
Full training of WINCITE Mobile Pro™ software for CITY staff. All training sessions can be digitally recorded and given to the CITY for future use and reference. A video will be provided for future training purposes.

FREE OF
CHARGE
20 April 17, 2023 Item 08
City of Del Mar
Agenda Report
TO: Honorable Mayor and City Council Members
FROM: Monica Molina, Finance Manager/Treasurer
Ashley Jones, City Manager
DATE: April 17, 2023
SUBJECT: Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2022 and Audited Financial Results
REQUESTED ACTION/RECOMMENDATION:

Staff recommends that the City Council: 1) Receive the Annual Comprehensive Financial Report (ACFR) for Fiscal Year Ended June 30, 2022, and audited financial results; and 2) Approve the updated FY 2022-2023 Reserve Summary Report based on FY 2021- 2022 final results.

DISCUSSION/ANALYSIS:

ANNUAL COMPREHENSIVE FINANCIAL REPORT
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, 2022. 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 consistent 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 1 April 17, 2023 Item 09
City Council Agenda Report
Fiscal Year 2021-2022 ACFR and Audited Financial Results April 17, 2023

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.

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 2021-2022 FINAL FINANCIAL REPORT
The FY 2021-2022 Budget was developed with the goal of maintaining essential services to the community, and limiting operating, capital and special project expenditures, while increasing expenditures in a slow and gradual manner as additional revenues became available. Although some economic recovery was expected to occur over the following year, revenues were not projected to reach pre-COVID levels during that time. In June 2021, the City Council approved the FY 2021-2022 Budget with a projected General Fund Contingency of 19.92% (73 days of operations). Fortunately, some revenues recovered quicker than anticipated and the final FY 2021-2022 amended budget presented to the City Council in June 2022, projected a General Fund Contingency of 27.12% (99 days of operations).

Attached is the Final Financial Report (Attachment E) for FY 2021-2022. The report reflects a total General Fund balance of $9,355,870, and a General Fund Contingency of $5,509,075, which represents 37.08%, or the equivalent of 135 days of operations. FY 2021-2022 Preliminary results were presented to the Finance Committee on December 1, 2022, and were included with the FY 2022-2023 Mid-Year Financial Report to the City Council on March 6, 2023.

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 some minor changes to the final financial report in comparison to preliminary results that were presented to the City Council in March 2023. The changes were related to the implementation of Governmental Accounting Standard Board pronouncement changes related to the reporting leases, which resulted in moving the reporting of the fire station lease cost from the Fire department program to the Non-departmental expenditure program, where all leases will be recorded in future years.
2 April 17, 2023 Item 09
City Council Agenda Report
Fiscal Year 2021-2022 ACFR and Audited Financial Results April 17, 2023

Also included in this report is the final General Fund cash flow report for FY 2021-2022 (Attachment F), which includes the final budget for the year (column D) that was approved on June 20, 2022; final results (column E); and the difference between the final budget and final results (column F).

As a result of the positive FY 2021-2022 financial results reported on March 6, 2023, the City Council approved transferring additional funds from the General Fund Contingency to other reserves. These transfers included an additional $500,000 to the Pension Reserve fund; $600,000 to the Housing Reserve Fund; and the creation of a Capital Improvement Reserve Fund with an initial $200,000 transfer. These approved transfers are reflected in the updated FY 2022-2023 Reserve Summary Report included as Attachment G.

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:

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.

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, 2022
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 2021-2022 Financial Report Attachment F - Fiscal Year 2021-2022 Cash Flow Report
Attachment G - Updated Fiscal Year 2022-2023 Reserve Summary Report 3 April 17, 2023 Item 09
CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
Honorable 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 City of Del Mar as of and for the year ended June 30, 2022, and have issued our report thereon dated March 27, 2023. We have previously communicated to you information about our responsibilities under auditing standards generally accepted in the United States of America and Government AuditingF Standards, as well as certain information related to the planned scope and timing of our audit in our engagement agreement dated June 15, 2022.

Professional standards also require that we communicate to you the following information related to our audit.

Significant audit findings or issues
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 City of Del Mar are described in Note 1 to the financial statements.

As described in Note 1, the City changed accounting policies related to leases by adopting Governmental Accounting Standards Board (GASB) Statement No. 87, Leases, effective July 1, 2021. Accordingly, the accounting change has been applied to the beginning of the period of adoption.

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 agent multiple employers defined benefit pension plans are based on actuarial valuations provided by California Public Employee Retirement System actuaries. We evaluated the key factors and assumptions used to develop the pension related estimates in determining that it is reasonable in relation to the financial statements taken as a whole. 4 April 17, 2023 Item 09
Honorable City Council
City of Del Mar, California

 Management’s estimate of the claims payable liabilities related to general liability and workers’ compensation claims are based on estimates by the claims administrators.

Financial statement disclosures
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 communication, a disagreement with management is a disagreement on 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 March 27, 2023.

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. 5 April 17, 2023 Item 09
Honorable City Council
City of Del Mar, California

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.

Required supplementary information
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.

Supplementary information in relation to the financial statements as a whole With respect to the combining fund financial statements, and the individual budgetary 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 March 27, 2023.

6 April 17, 2023 Item 09
Honorable City Council
City of Del Mar, California

Other information included in annual reports
Other information (financial or nonfinancial information other than the financial statements and our auditors’ report thereon) is being included in your annual report and is comprised of the introductory and statistical sections. Our responsibility for other information included in your annual report does not extend beyond the financial information identified in our opinion on the financial statements. We have no responsibility for determining whether such other information is properly stated and do not have an obligation to perform any procedures to corroborate other information contained in your annual report.

We are required by professional standards to read the other information included in your annual report and consider whether a material inconsistency exists between the other information and the financial statements because the credibility of the financial statements and our auditors’ report thereon may be undermined by material inconsistencies between the audited financial statements and other information.

If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Our auditors’ report on the financial statements includes a separate section, “Other Information,” which states we do not express an opinion or any form of assurance on the other information included in the annual report. We did not identify any material inconsistencies between the other information and the audited financial statements.
* * *
This communication is intended solely for the information and use of the City Council and management of 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
March 27, 2023
7 April 17, 2023 Item 09
Annual Comprehensive Financial Report
Fiscal Year Ended
June 30, 2022

CITY OF DEL MAR, CALIFORNIA
8 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

ANNUAL COMPREHENSIVE FINANCIAL REPORT

WITH REPORT ON AUDIT BY

INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
YEAR ENDED JUNE 30, 2022

PREPARED BY

ADMINISTRATIVE SERVICES DEPARTMENT

MONICA MOLINA

FINANCE MANAGER/TREASURER
9 April 17, 2023 Item 09
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10 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022

INTRODUCTORY SECTION

LETTER OF TRANSMITTAL I

CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL

REPORTING (GFOA) II

DIRECTORY OF OFFICIALS III

ORGANIZATIONAL CHART IV

FINANCIAL SECTION
INDEPENDENT AUDITORS’ REPORT 1
MANAGEMENT’S DISCUSSION AND ANALYSIS 8

FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS
STATEMENT OF NET POSITION 26
STATEMENT OF ACTIVITIES 27

FUND FINANCIAL STATEMENTS

GOVERNMENTAL FUNDS
BALANCE SHEET 32

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION 33

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 34

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES OF THE GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES 35

PROPRIETARY FUNDS
STATEMENT OF NET POSITION 36

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET
POSITION 37
STATEMENT OF CASH FLOWS 38

FIDUCIARY FUNDS
STATEMENT OF FIDUCIARY NET POSITION 39
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 40
NOTES TO FINANCIAL STATEMENTS 41
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CITY OF DEL MAR, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022

REQUIRED SUPPLEMENTARY INFORMATION

MISCELLANEOUS PENSION PLAN
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY 79 SCHEDULE OF CONTRIBUTIONS – DEFINED BENEFIT PENSION PLAN 81

SAFETY PENSION PLAN
SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY 83 SCHEDULE OF CONTRIBUTIONS – DEFINED BENEFIT PENSION PLAN 85 BUDGETARY COMPARISON SCHEDULE – GENERAL FUND 87
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION 89

SUPPLEMENTARY INFORMATION

GENERAL FUND
COMBINING BALANCE SHEET 93

COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 94

NONMAJOR GOVERNMENTAL FUNDS
COMBINING BALANCE SHEET 96

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES 98

BUDGETARY COMPARISON SCHEDULES
GASOLINE TAX SPECIAL REVENUE FUND 100
OPEN SPACE SPECIAL REVENUE FUND 101
SUPPLEMENTAL LAW ENFORCEMENT SPECIAL REVENUE FUND 102
REGIONAL COMMUNICATIONS SYSTEM SPECIAL REVENUE FUND 103 GRANTS SPECIAL REVENUE FUND 104
HOUSING SPECIAL REVENUE FUND 105
AB 939 SPECIAL REVENUE FUND 106
RMRA SPECIAL REVENUE FUND 107
TRANSNET II CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND 108 CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND – MAJOR FUND 109

CUSTODIAL FUNDS
COMBINING STATEMENT OF FIDUCIARY NET POSITION 111
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 112 12 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2022

STATISTICAL SECTION (UNAUDITED)
DESCRIPTION OF STATISTICAL CONTENTS 114

FINANCIAL TRENDS
NET POSITION BY COMPONENT 115
CHANGES IN NET POSITION 117
FUND BALANCES OF GOVERNMENTAL FUNDS 119
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS 121
GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE 124
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION 125

REVENUE CAPACITY
ASSESSED VALUE OF PROPERTY BY USER CODE 126
ESTIMATED VALUE OF TAXABLE PROPERTY 128
CONSTRUCTION PERMITS 130
PROPERTY TAX RATES – ALL OVERLAPPING GOVERNMENTS 131
TEN LARGEST PROPERTY TAXPAYERS 132
TOP 25 SALES TAX PRODUCERS 133
PROPERTY TAX LEVIES, TAX COLLECTIONS, AND DELINQUENCIES 134

DEBT CAPACITY
RATIO OF OUTSTANDING DEBT BY TYPE 135
PLEDGED-REVENUE COVERAGE 136
RATIO OF GENERAL BONDED DEBT OUTSTANDING 137
DIRECT AND OVERLAPPING BONDED DEBT 138
SCHEDULE OF LEGAL DEBT MARGIN 139

DEMOGRAPHIC AND ECONOMIC INFORMATION
DEMOGRAPHIC AND ECONOMIC STATISTICS 141
TOP TEN PRINCIPAL EMPLOYERS 143

OPERATING INFORMATION
FULL-TIME EMPLOYEES BY FUNCTION 144
OPERATING INDICATORS BY FUNCTION 145
CAPITAL ASSET STATISTICS BY FUNCTION 146
MISCELLANEOUS STATISTICS 147
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INTRODUCTORY SECTION
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March 27, 2023
Honorable Mayor, Councilmembers, and the Citizens of the City of Del Mar, California

LETTER OF TRANSMITTAL
FISCAL YEAR 2021-2022 ANNUAL COMPREHENSIVE FINANCIAL REPORT It is a pleasure to present the Fiscal Year 2021-2022 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, 2022.

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 3,929 residents, as reported on the Department of Finance population estimates as of January 1, 2022, 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, 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 2021-2022 and 2022-2023, on June 21, 2021. The budget process began with the City Council developing goals and priorities 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 as well. Due to the COVID-19 pandemic, the Fiscal Year 2021-2022 Operating Budget was developed with the goal of maintaining essential services to the community, and limiting operating, capital and special project expenditures, while increasing expenditures in a slow and gradual manner as additional revenues became available.

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. Semi-annual financial reports are presented and reviewed by the City’s Finance Committee before being presented to the Council at regularly scheduled meetings. 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 3.7% in Fiscal Year 2021-2022 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 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 18 April 17, 2023 Item 09
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 $263,067 in Fiscal Year 2021-2022. 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. Fortunately, in FY 2021-2022, TOT revenue recovered quicker than anticipated and exceeded pre-pandemic levels by 14.7% resulting in a total of $3.4 million in TOT revenue for the year.

The pandemic also had a major impact on sales tax revenues. Receipts for FY 2021-22 indicate that although sales tax revenue has not reached pre-pandemic levels, downtown activity has thrived and exceeded pre-Covid levels, with a lag in recovery only being shown at the Fairgrounds. Although we are starting to see a recovery in sales tax, revenues came in approximately $140,000 lower when compared to FY 2018-2019, the last full pre-pandemic 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 $3.4 million in Fiscal Year 2021-2022 revenues. To date, Measure Q has generated approximately $14 million in district tax revenues. Though no specific projects or uses were officially designated as part of the voterapproved general tax measure, subsequent to its passage, the City Council identified by resolution 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 Tewa Court Utility Undergrounding Project began its preliminary phase at the end of Fiscal Year 2020-2021, with construction being completed in FY 2022-2023. In Fiscal Year 2021-2022, the City Council established undergrounding districts 1A and X1A, which are currently under design and are anticipated to begin construction in early 2024.

In comparison to sales tax, due to the continuous practice of online shopping by Del Mar residents, Measure Q revenues recovered faster and exceeded pre-pandemic levels in FY 2021-2022. Receipts for the year indicate an increase of approximately $552,090, or 19.5%, when compared to Fiscal Year 2018-2019, which was the last full pre-pandemic year.

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 sales tax revenues are not yet at pre-pandemic levels, revenues came in higher than 19 April 17, 2023 Item 09
projected, and a total of $1.36 million was authorized to transfer to the Pension Reserve Fund in Fiscal Year 2021-2022. It is anticipated that the Pension Reserve will reach its anticipated prepandemic level by FY 2022-23.

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 2021-2022, 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
Capital Improvement Project funding significantly recovered from the pandemic reductions required during Fiscal Year 2020-2021. The following Capital Improvement Program achievements occurred in Fiscal Year 2021-2022:
 Administered 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.  Completed the Preliminary Engineering Phase of the Camino del Mar Bridge Replacement Project.
 Continued design and construction work on the City’s multi-year program to systematically identify, prioritize, and implement water, wastewater, and roadway pavement rehabilitation projects.
 Continued preliminary engineering and environmental permitting activities for Riverpath Del Mar Phase 3, connecting the Grand Avenue Bridge to Crest Canyon Trailhead.  Completed the Powerhouse Park Walkway Lighting Project.  Completed essential building repairs to 17th Street/20th Street/25th Street Lifeguard Buildings.  Completed design of Tot Lot Replacement Project.
 Completed Penasquitos Lagoon Storm Drain Repair Project Habitat Restoration Phase.  Continued design of priority storm drain repairs for future Capital Improvement Project.  Continued facility maintenance program for City Hall, City buildings, various lifeguard towers, and public facilities throughout the City.
 Installed Storm Drain Capture Devices as required by the City’s Municipal Stormwater Permit issued by the California Regional Water Quality Control Board.  Completed comprehensive Risk Assessment of City sidewalks and removed all identified potential trip hazards.
 Completed annual major arterial bike lane repair program.  Completed construction of annual Water, Wastewater, and Paving Capital Improvement Project.  Continued the Citywide Pavement Rehabilitation Program based on a system-wide condition assessment and the prioritization program.
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 Completed resurfacing, restriping, and fence repairs at the Court Street tennis courts.  Completed restriping of Jimmy Durante Boulevard.
 Completed methacrylate treatment of Torrey Pines Bridge.

Planning and Community Development
The Planning and Community Development Department is responsible for five functional areas within the City, which include Long Range Planning, Current Planning, Building & Safety, Code Enforcement, and the Clean Water Program. 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.

Affordable Housing
The 6th Cycle Housing Element (planning period 2021-2029) was initially adopted by the City Council on March 25, 2021, and re-adopted by the City Council on December 13, 2021. The City is continuing to work with the State Department of Housing and Community Development (HCD) to obtain certification of the 6th Cycle Housing Element. Significant milestones accomplished include:
 In March 2022, the City was awarded Housing Acceleration Program (HAP) grant funding to facilitate affordable housing and Housing Element program implementation. In April 2022, the City Council approved the 2021 Annual Housing Element Progress Report and subsequently submitted the report to HCD.
 In May 2022, the City Council approved an extension to the Accessory Dwelling Unit (ADU) Pilot Program (Incentive Program) (6th Cycle Program 2A).  The City obtained Coastal Commission final certification of the Housing Element Implementation Overlay Zone (5th Cycle Program 2G), North Commercial Zone (6th Cycle Program 1A), and Professional Commercial Zone (6th Cycle Program 1B) Local Coastal Program Amendments.
 The City completed Phase I housing feasibility studies that demonstrated the feasibility of affordable housing on the State Fairgrounds property and on two vacant City-owned properties (10th Street and 28th Street) and identified financing strategies (6th Cycle Program 3B).  The City Council adopted a new Council Policy to require Housing Impact Statements in Agenda Reports to help inform land use planning decisions (6th Cycle Program 5B).  On April 19, 2022, the City approved an administrative Coastal Development Permit (CDP21- 005) for affordable housing on two vacant sites owned by Watermark LP, including 40 above moderate units, 6 low-income units, 2 very low-income units, and 2 extremely low-income units.  On August 10, 2022, the City Council adopted a Development Agreement (DA22-001) and associated Regulatory Agreement for a mixed-use commercial and residential development located at 941 Camino del Mar (APNs: 300-221-32 and -33) that includes two low-income units.

To facilitate economic recovery for local businesses, staff prepared and processed an ordinance with various parking-related changes and submitted the Parking LCPA application to the Coastal Commission for certification. Coastal Commission action is anticipated to occur by June 2023.

Technological & Administrative Enhancements
The City was able to continue to provide a very high level of service to the public while allowing remote teleworking, remote public meetings and transitioning to a hybrid work environment. 21 April 17, 2023 Item 09
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 2022-2023 include:
 Commence the Engineering Design Phase of the Camino del Mar Bridge Replacement Project.  Complete Preliminary Engineering, Environmental Permitting, Engineering Design and Construction Contract Procurement activities for Riverpath Del Mar Phase 3, connecting the Grand Avenue Bridge to Crest Canyon Trailhead.
 Continue essential building repairs to 17th Street/20th Street/25th Street Lifeguard Buildings.  Complete procurement and construction of Tot Lot Replacement Project.  Complete design and begin construction procurement activities of Priority Storm Drain Capital Improvement Repairs.
 Continue comprehensive City sidewalk risk hazard removal program.  Continue annual major arterial bike lane repair program.  Continue facility maintenance program for City Hall, City buildings, various lifeguard towers, and public facilities throughout the City.
 Commence 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 engineering assessment to develop private section of San Dieguito Drive.  Complete engineering Assessment of Hoska Alley Development Project.  Complete design and construction of Coast Boulevard Pedestrian Improvement Project.  Commence geotechnical studies and engineering design of Jimmy Durante Boulevard Bluff Development Project.
 Complete design and environmental permitting of 20th Street Beach Access Project.

Utility Undergrounding Project
The City Council authorized the restart of the utility undergrounding project in March 2021. The Tewa Court/10th Street Utility Undergrounding District was formed in May 2021, and construction was completed in September 2022. The next two projects consist of: Area 1A (Stratford Court), which will most likely qualify for an environmental categorical exemption and begin construction in early 2024; and Area X1A (Crest Canyon), which most likely will not qualify for an environmental categorical exemption because work will occur in environmentally sensitive areas, and is also expected to begin construction in 2024.

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 land leased from the City), community building 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. Timing to restart the Shores Park Master Planning effort is undetermined at this time. 22 April 17, 2023 Item 09
Affordable Housing and Housing Element Implementation
Staff will seek final City Council approval and HCD certification of the 6th Cycle Housing Element.

Staff will also continue to implement its adopted housing action programs, including completion of feasibility studies and financing strategies to demonstrate the feasibility of housing at the Fairgrounds and continued efforts to secure a housing agreement with the State 22nd District Agricultural Association to provide affordable housing opportunities at the Fairgrounds. The City is preparing updates to the City’s Community Plan (General Plan) including an update to the Safety Element and a new Environmental Justice Element to demonstrate the City’s commitment to affirmatively further fair housing.
“Harmonizing” and Implementation of Accessory Dwelling Unit (ADU) Regulations and State Law State laws applicable to ADUs continue to be amended and the interpretations of those laws at the State level has continued to evolve. The Planning and Community Development Department continues to coordinate with HCD and the Coastal Commission in an effort to “harmonize” State laws for implementation at the local level. A draft ordinance will be circulated for public review and comment prior to Planning Commission and City Council consideration. Submittal of the associated Local Coastal Program Amendment to the California Coastal Commission for certification will follow City Council action. Meanwhile, the Department continues to process submitted applications in accordance with State law.

California State Senate Bill 9 (SB 9) Implementation
A draft ordinance and objective design standards to locally implement and regulate development applications submitted in accordance with the provisions of SB-9 will be circulated for public review and comment prior to Planning Commission and City Council consideration in spring 2023.

Submittal of the associated Local Coastal Program Amendment to the California Coastal Commission will follow City Council action. Coastal Commission certification is needed to facilitate processing of permit applications for proposed duplex development and urban lot splits in single dwelling unit zones in accordance with the provisions of SB 9. The Planning and Community Development Department will commence processing applications for projects consistent with SB 9 upon Coastal Commission certification of the new ordinance.

Hazard Mitigation and Adaptation Planning
The City is continuing to seek federal and state agency permit approvals to implement a Sand Compatibility Opportunistic Use Program (SCOUP) and associated beach nourishment in accordance with the City’s priority adaptation strategy to minimize flood risk. The City submitted a grant application to the State Parks Division of Boating and Waterways in December 2021 requesting grant funds to facilitate a beach nourishment project in FY 2023-2024. The City is also continuing to coordinate with Southern California Edison on their required mitigation efforts to maintain the San Dieguito Lagoon and river inlet in accordance with the applicable performance standards and place beach quality sand on the Del Mar beach. In 2023, the City will initiate consultant work for 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.

Regulation of Short Term Rentals (STRs)
The City Council provided staff direction in May 2022 targeting mid-2023 to reengage on STRs including gathering data on the number of rentals and potential revenues from an STR Transient Occupancy Tax (TOT) or fee. Staff will process a two-year forbearance extension prior to the February 1, 2023, expiration of the existing forbearance period to extend the forbearance until new regulations are adopted and become effective. This will include allocation of budget for FY 2022- 23 April 17, 2023 Item 09
2023 and FY 2023-2024 for data collection (number of existing STRs in Del Mar) to establish a baseline and a Request for Qualifications (RFQ) process prior to May 1, 2023, to identify a consultant for data collection. On a separate track, the City must also bring forward an item for the Council to consider whether to prohibit STRs in the North Commercial zone in order to satisfy an action needed per the Referendum Withdrawal Agreement. If applicable, staff would process an ordinance for implementation per City Council direction.

Technological & Administrative Enhancements
Looking ahead, for Fiscal Year 2022-2023, other initiatives underway related to technological enhancements include the upgrade of the City’s Permitting software to allow for online permit applications, inspection scheduling, and payment of permit/project fees. The upgrade will also include enhancements to better integrate payments into the permitting software and financial system.

In addition, business license administration will be outsourced to a third party, which will improve customer service for businesses by providing an online portal for business license applications, renewals, and payments. Outsourcing business license administration will save a significant amount of staff resources and allow staff to redirect their efforts to higher priority projects.

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 was temporarily deferred until such time that the City has economically recovered. However, the FY 2022-23 Budget Update presented to the City Council in June 2022, reported a GFC of 24.04%.

In June 2021, based on financial projections and the uncertain economic impact the pandemic was going to continue to have on Del Mar’s revenue, the City Council approved a Fiscal Year 2021-2022 budget with the goal of maintaining essential services to the community, and limiting operating, capital and special project expenditures, while increasing expenditures in a slow and gradual manner as additional revenues became available. Fiscal Year 20201-2022 revenues came in higher than projected and expenditures remained at or below projections. The final GFC for year ending June 30, 2022, is 37.08% or 135 days of operations, which is well above the required minimum contingency reserve. Positive results allowed the City Council to approve a transfer of $1.1 million to other reserves in Fiscal Year 2022-2023, 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 continued to be deferred in FY 2021-2022 and no transfer was 24 April 17, 2023 Item 09
made to the CIP Reserve this year. However, based on positive results in FY 2021-2022, the creation of the Capital Improvement Reserve Fund with an initial transfer of $200,000 was approved by the City Council in FY 2022-2023.

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 25 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 Del Mar City Council and Executive Management 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
Monica Molina
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of DelMar
California
Annual Comprehensive For its
Financial Report
For the Fiscal Year Ended
June 30, 2021
Executive Director/CEO
(ii)
27 April 17, 2023 Item 09
Dwight Worden
Mayor
Tracy Martinez Dave Druker
Deputy Mayor Councilmember
Terry Gaasterland Dan Quirk
Councilmember Councilmember

CITY MANAGER
Ashley Jones

INTERIM ASSISTANT

CITY MANAGER

ADMINISTRATIVE SERVICES

MANAGER
Clement Brown* Sarah Krietor

DIRECTOR OF PLANNING AND FINANCE MANAGER/

COMMUNITY DEVELOPMENT TREASURER
Karen Brindley Monica Molina

PUBLIC WORKS

DIRECTOR

DIRECTOR OF COMMUNITY SERVICES

AND LIFEGUARD CHIEF
Joe Bride Jon Edelbrock

SHERIFF CAPTAIN FIRE CHIEF
Herbert Taft Mike Stein

CITY ATTORNEY
Leslie Devaney
*Interim appointment effective July 1, 2022

CITY COUNCIL

CITY OF DEL MAR, CALIFORNIA

DIRECTORY OF OFFICIALS
YEAR ENDED JUNE 30, 2022
(iii)
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CITY OF DEL MAR, CALIFORNIA

ORGANIZATIONAL CHART
YEAR ENDED JUNE 30, 2022
(iv)
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30 April 17, 2023 Item 09

FINANCIAL SECTION
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CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.

CliftonLarsonAllen LLP
CLAconnect.com
(1)
INDEPENDENT AUDITORS’ REPORT
City Council
City of Del Mar, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the businesstype 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, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the 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, 2022, 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.

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

Emphasis of Matter
As discussed in Note 1 to the financial statements, effective July 1, 2021, the City adopted new accounting guidance, GASB No. 87, Leases. Our opinions are not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
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City Council
City of Del Mar, California
(2)
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
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City of Del Mar, California
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Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison – 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 be presented to supplement the financial statements. Such information is the responsibility of management, and although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the required supplementary information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The individual fund schedules and combining financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the individual fund schedules and combining financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. 35 April 17, 2023 Item 09
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City Council
City of Del Mar, California
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report March 27, 2023, 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 City’s internal control over financial reporting and compliance.

CliftonLarsonAllen LLP
Irvine, California
March 27, 2023
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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, 2022. 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 property tax base, which continues to be very stable and 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. Although sales tax continues to reflect slightly lower than normal sales tax revenues due to the COVID-19 pandemic, TOT has recovered and exceeded prepandemic levels.

In Fiscal Year 2021-2022, the City received approximately $0.27 million (3.66%) more in property tax; $1.6 million more in TOT; $0.92 million (80.21%) more in sales tax; and $1.08 million (46.93%) more in Measure Q revenues in comparison to Fiscal Year 2020-21, which represents positive results as the City continues to recover from the economic downturn resulting from the COVID-19 pandemic. When compared to Fiscal Year 2018-2019, the last full pre-pandemic fiscal year, TOT revenue recovered during this year and exceeded pre-pandemic levels by $0.44 million (14.66%). Although sales tax came in at $0.92 million (80.21%) more than last year, revenues are still $0.14 million (6.33%) lower than the pre-pandemic Fiscal Year 2018-

19. Due to the increase in online purchases and vehicle purchases by Del Mar residents, the 1% District tax (Measure Q) revenues recovered quicker than sales tax and exceeded pre-pandemic Fiscal Year 2018-19 by $0.55 million (19.47%).

This year, the Governmental Accounting Standards Board (GASB) implemented Statement No. 87, Leases. This standard requires the recognition of lease assets to be based on the payment provisions of the contract. It establishes a single model for lease accounting based on the 40 April 17, 2023 Item 09
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foundational principle that leases are financings of the right to use an underlying asset. The City has implemented this Statement and it is discussed in Note 1 D of the Notes to Basic Financial Statements section of this report.

The discussion and analysis below compares Fiscal Year 2021-2022 (FY 21-22) to Fiscal Year 2020-2021 (FY 20-21). All variances are relative to FY 20-21 results. FY 21-22 financial highlights include the following:

Financial Highlights
• The City’s total assets in excess of its liabilities as of June 30, 2022, were $103.01 million.
• Citywide total net position increased by $5.44 million (5.58%) during the current fiscal year, indicating a consistent and stable financial condition. The change in net position is largely due to the increase in total cash and investments, which was a result of keeping expenses at or below projections and receiving more revenue than anticipated, as well as a decrease in total liabilities largely related to change in net pension liability.
 A net increase in total assets of $11.33 million (8.20%) is primarily due to the net of an increase of $11.84 million (53.47%) in current assets and a decrease in capital assets of $0.51 million (0.44%). The Citywide non-current asset loss is largely related to how capital assets are reported. In FY 21-22, some capital projects continued to be deferred, therefore the City had lower than usual capital expenses.  A net decrease in total liabilities of $1.69 million (3.93%) is primarily due to the net of an increase in current liabilities related to accounts payable and accrued liabilities of $4.67 million and a decrease in noncurrent liabilities related to long-term debt and net pension liability of $6.36 million.
 The deferred outflows/inflows of resources resulted in a net change of $7.7 million, largely related to the recognition of leases and increase in deferred inflows of resources from pension plans.
 As of June 30, 2022, the City’s governmental funds reported combined fund balances of $17.07 million, which is an increase of $5.45 million (46.87%) from June 30, 2021.

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 $17.07 million in fund balance, $0.002 million is non-spendable for prepaid items; $0.87 million is restricted; $0.36 million is committed ; $10.31 million is assigned for specific activities; and $5.53 million is unassigned.
 At the end of the current fiscal year, the fund balance for the General Fund is $15.49 million. This balance is available for spending at the City Council’s discretion, and is equal to 106.69% of the total fiscal year expenditures of $14.51 million, and 68.87% of total revenues of $22.48 million, before other financing sources (uses). The Capital Projects Fund has a fund balance of $0.36 million, and other non-major governmental funds have combined fund balances of $1.23 million, at June 30, 2022. 41 April 17, 2023 Item 09
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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.

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. 42 April 17, 2023 Item 09
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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 four 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; 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 financial section.

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.
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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 $103.01 million as of June 30, 2022.

This is an increase of $5.44 million (5.58%), compared to June 30, 2021. 2022 2021 2022 2021 2022 2021
Current assets $26,493,599 $15,214,972 $7,481,161 $6,922,637 $33,974,760 $22,137,609 Capital assets 89,216,204 89,820,875 26,211,537 26,117,711 115,427,741 115,938,586 Total assets 115,709,803 105,035,847 33,692,698 33,040,348 149,402,501 138,076,195 Deferred outflows of resources 2,275,036 2,181,463 581,765 592,551 2,856,801 2,774,014 Current liabilities 8,243,512 3,629,514 1,746,320 1,688,930 9,989,832 5,318,444 Non-current liabilities 24,116,978 28,700,149 7,233,187 9,012,133 31,350,165 37,712,282 Total liabilities 32,360,490 32,329,663 8,979,507 10,701,063 41,339,997 43,030,726 Deferred inflows of resources 6,339,344 202,563 1,573,002 49,655 7,912,346 252,218 Net investment in capital assets 71,521,446 72,058,048 20,926,230 20,447,077 92,447,676 92,505,125 Restricted 1,123,980 934,485 - - 1,123,980 934,485
Unrestricted 6,639,579 1,692,551 2,795,724 2,435,104 9,435,303 4,127,655 Total net position $79,285,005 $74,685,084 $23,721,954 $22,882,181 $103,006,959 $97,567,265 Governmental Activities Business-type Activities
TABLE 1

CITY OF DEL MAR

NET POSITION
Total
The largest component of the City’s net position, $92.45 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 $0.06 million (>0.01%) 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.
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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 $1.12 million. This had an increase of $0.17 million (18.32%) from the prior fiscal year amount of $0.95 million. The remaining unrestricted net position of $9.44 million, which reflects an increase of $5.32 million (129.45%) from the prior year, is largely due to recovery of some large revenues sources and exceeding expenditures for the current year.

As of June 30, 2022, 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 $4.60 million (6.15%) and the total net position in business-type activities increased by $0.84 million (3.67%).

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.
2022 2021 2022 2021 2022 2021
Revenues:

Program Revenues:

Charges for services $5,188,162 $5,015,265 $8,824,290 $8,512,229 $14,012,452 $13,527,494 Operating grants and contributions 426,084 553,325 57,316 29,148 483,400 582,473 Capital grants and contributions 484,867 707,085 - - 484,867 707,085 General Revenues:

Property taxes 7,771,396 7,496,882 - - 7,771,396 7,496,882 Sales and other taxes 9,562,416 5,799,852 - - 9,562,416 5,799,852 Intergovernmental/unrestricted 151,499 79,645 - - 151,499 79,645 Investment Income (139,964) 229,973 (112,089) 59,028 -252,053 289,001 Other 549,295 1,049,654 - - 549,295 1,049,654
Total revenues 23,993,755 20,931,681 8,769,517 8,600,405 32,763,272 29,532,086 Expenses:

General government 7,424,735 7,048,840 - - 7,424,735 7,048,840 Public safety 7,626,541 7,699,253 - - 7,626,541 7,699,253 Public works 2,644,194 2,514,209 - - 2,644,194 2,514,209 Parks and recreation 1,059,781 773,562 - - 1,059,781 773,562 Interest and long-term debt 550,712 485,322 - - 550,712 485,322 Enterprise operations - - 8,017,615 7,932,882 8,017,615 7,932,882 Total expenses 19,305,963 18,521,186 8,017,615 7,932,882 27,323,578 26,454,068 Transfers (87,871) 18,176 87,871 (18,176) - -
Change in net position 4,599,921 2,428,671 839,773 649,347 5,439,694 3,078,018 Net position - beginning of year 74,685,084 72,256,413 22,882,181 22,232,834 97,567,265 94,489,247 Net position - end of year $79,285,005 $74,685,084 $23,721,954 $22,882,181 $103,006,959 $97,567,265 TABLE 2
Governmental Activities Business-type Activities Total

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

The City’s net position from governmental activities increased by $4.60 million (6.15%) in the current fiscal year, accounting for 84.56% of the total $5.44 million increase in the City’s total net position. Total revenues from governmental activities of $23.99 million increased by $3.06 million (14.62%), compared to the prior fiscal year. The cost of all govermental activities in FY 21-22 was $19.31 million, an increase of $0.78 million (4.23%), over the prior fiscal year. Based on the quicker revenue recovery from the economic impact of the pandemic, the City was able to increase some services to pre-pandemic levels resulting in an increase in expenses in FY 21-22.

As shown in the Statement of Activities, governmental activities were financed in part by taxpayers at $5.19 million, which was generated by service revenues received from the performance of these activities, and had an increase of $0.17 million (3.44%) compared to FY 2020-21. Increase in this category was largly related to the Parks and Recreation program which included the first year of the in-house Jr. Lifeguard Program and an increase in permit fees due to the re-opening of private events at the Powerhouse Building. Another $0.43 million was received from other government agencies and other organizations that subsidized certain programs with operating grants and contributions. In addition, another $0.48 million in revenues came from capital grants and contributions, which decreased by $0.22 million (31.42%), compared to the prior fiscal year.

Overall, the City’s governmental program revenues amounted to $6.10 million, a decrease of $0.18 million (2.81%) compared to the prior fiscal year. General revenues of $17.89 million increased by $3.24 million (22.09%), in comparison to the prior fiscal year. The City had an increase in property taxes of $0.27 million (3.66%); an increase of sales and other taxes of $3.76 million (64.87%) largely related to recovery of sales tax, TOT, and district tax (Measure Q) revenue; and a decrease in other revenue of $0.79 million (58.74%) compared to the prior fiscal year.

In comparison to the prior fiscal year, the key elements contributing to the $0.78 million (4.24%) increase in expenditures from governmental activities are as follows:
 An increase of $0.38 million (5.33%) in general government costs largely due to restoring employee salaries by eliminating mandatory furloughs that were implemented in FY 20-21.
 An increase of $0.13 million (5.17%) in public works due to restoring a portion of city-wide landscaping and tree maintenance services that were reduced to essential only levels of service in the prior FY 20-21.
 An increase of $0.27 million (37.00%) in parks and recreation due to restoring a portion of parks landscaping and tree maintenance services that were reduced to essential only levels of service in the prior year.

Business-type Activities:

The City’s business-type activities increased in net position by $0.84 million (3.67%), for the fiscal year ended June 30, 2022. Business-type activities’ total revenue increased by $0.17 million (1.97%), during the current fiscal year to a total of $8.77 million in revenues. In 46 April 17, 2023 Item 09
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comparison to the prior fiscal year, charges for services increased by $0.31 million (3.67%).

Business-type activity costs also increased during the fiscal year by $0.08 million (1.07%), compared to the prior fiscal year. The increase in revenues and expenses, resulted in a change in net position of $0.84 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.

As of June 30, 2022, the City’s governmental funds reported a combined ending fund balance of $17.07 million, which is a $5.45 million (46.87%) increase, in comparison to the prior fiscal year of $11.63 million. The $17.07 million governmental fund balance is composed of $0.002 million in non-spendable; $0.87 million in restricted; $0.36 million in committed; $10.31 million in assigned (not available for new spending); and $5.53 million in unassigned funds (available for new spending).

Table 3 below shows the governmental fund balances for the fiscal years ended June 30, 2022 and June 30, 2021.
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Non-Major
Capital Governmental
FISCAL YEAR 2021-2022 General Improvement Funds Totals
Total revenues $22,483,491 $179,056 $1,301,181 $23,963,728 Total expenditures 14,514,881 1,668,692 2,243,642 18,427,215 Excess (deficiency) of
revenues over expenditures 7,968,610 (1,489,636) (942,461) 5,536,513 Total other financing
sources (uses) (2,954,583) 1,542,080 1,324,632 (87,871) Net change in fund balance 5,014,027 52,444 382,171 5,448,642 Fund balance - beginning 10,471,415 308,370 845,507 11,625,292 Fund balance - ended $15,485,442 $360,814 $1,227,678 $17,073,934 FISCAL YEAR 2020-21
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
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 TABLE 3

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

GOVERNMENTAL FUNDS
General Fund:

Total governmental funds includes the General Fund, the chief operating fund of the City, which has a fund balance of $15.49 million as of June 30, 2022. This is an increase of $5.01 million (47.88%), in comparison to the prior fiscal year. This increase is due to the net of an increase in total revenues of $2.77 million (14.07%) in total revenues; an increase of operating costs of $0.89 million (6.56%) and an increase in other financing uses of 1.08 million (57.65%).
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Increased revenues of $2.77 million (14.07%) were largely related to increases to property tax of $0.27 million (3.66%), an increase to sales tax of $0.92 million (80.21%), an increase of $1.63 million (90.83%) in TOT, and an increase in district tax (Measure Q) of $1.08 million (46.93%). Although most of these top revenue sources show a high percentage increase when compared to the prior year, TOT and district tax (Measure Q) fully recovered to precovid levels and sales tax did not reach pre-covid levels during FY 21-22.

Total expenditures increased by $0.89 million (6.56%) when compared to FY 20-21. The increase was largely related to the partial recovery of City-wide tree and landscaping services and the restoration of employee salaries that were furloughed and laid off in FY 20-

21. The ending fund balance is composed of less than $0.001 million of non-spendable funds for prepaid items; $9.95 million in assigned funds for specific expenditures; and $5.53 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 8 to the Basic Financial Statements.

Major Funds:

As of June 30, 2022, the Capital Improvement Program’s fund balance of $0.36 million, increased by $0.05 million (17.01%) from the prior fiscal year. Total revenues increased by $0.03 million (24.22%) largely due to receiving more local and federal grant funding for the Camino del Mar Bridge project. Total expenditures increased by $0.46 million (38.39%) largely due to more project expenditures in compared to the prior year including the Camino del Mar Bridge project and Pavement Rehabilitation.

Non-major Funds:

The fund balances for other governmental funds or non-major governmental funds increased $0.38 million (45.20%) from the FY 2020-21 balance of $0.85 million to $1.23 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 $1.23 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.

Enterprise Funds: The total net position in the enterprise funds, increased over the prior fiscal year by $0.84 million (3.67%). The City’s Water Fund increased by $0.26 million (2.03%), the Wastewater Fund increased by $0.48 million (4.90%), and the Clean Water Fund increased by $0.10 million (49.64%).

At the end of FY 21-22, the Internal Service fund reported a net position of $0.40 million, which is less than $0.01 million (1.70%) increase from last fiscal year, due to lower claims activity, offset by higher charges for services.
49 April 17, 2023 Item 09
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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 21-22 budget in June 2021, based on the assumption that revenues would gradually continue to recover throughout the fiscal year. Projections were also based with the assumption that revenues would fully recover by FY 23-24.

The City experienced the largest revenue losses in TOT, sales tax, and district tax (Measure Q) during the COVID-19 pandemic. The second half of FY 20-21 resulted in stronger than anticipated recovery of TOT and district tax (Measure Q) revenues, which continued through FY 21-22. By the end of the current year, both revenue sources exceeded prepandemic levels leading to a favorable budget variance in total revenue of $1.12 million.

This positive budget variance primarily reflects revenue realization greater than estimates due to higher tax revenues of $1.22 million; higher licenses, fees and permits of $0.04 million; higher intergovernmental revenue of $0.07 million; and higher fines and forfeitures of $0.19 million; which was offset by lower charges for services of $0.05 million and lower investment income of $0.36 million.

The actual expenditures were less than the fiscal year’s final appropriation by $2.67 million primarily due to less than anticipated expenditures in general government of $0.67 million; lower expenditures in public safety of $0.27 million; lower expenditures in public works of $0.31 million and lower capital outlay of $1.53 million, which was offset by an increase in debt service expenditures of $0.11 million. Lower capital outlay than projected was largely due to the appropriation for Undergrounding Districts 1A and X1A project which was approved in FY 21-22, but would be largely expensed in FY 22-23 and 23-24. 50 April 17, 2023 Item 09
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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, 2022, amounts to $115.43 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 $0.93 million (0.80%), compared to the prior fiscal year. Of the net decrease, $1.06 million decrease is related to governmental activities and $0.09 million increase in business-type activities. For capital assets by category, refer to Table 4.

In FY 20-21, 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. Based on recovery of some revenue sources, some deferred projects began in the current fiscal year resulting in some minor additions to capital assets. The largest capital asset additions for the year included costs related to the Utility Undergrounding projects of $0.76 million; Camino del Mar Bridge project of $0.38 million; Pavement Rehabilitation project of $0.30 million; Riverpath Del Mar project of $0.08 million; and Tot Lot project of $0.03 million. However, the total depreciation on current assets for the year was $2.81 million, which resulted in a net decrease of $1.06 million in governmental activities capital assets.

The same practice of spending was implemented for business-type activities, which resulted in a minimal increase of $0.09 million (0.35%) during the fiscal year. The largest capital asset expenditures for the year included water, storm drain and wastewater infrastructure improvements of $0.63 million. The total depreciation of the year was $0.54 million, resulting in a net increase of $0.09 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.
51 April 17, 2023 Item 09
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2022 2021 2022 2021 2022 2021
As restated As restated
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
Construction in progress 4,652,878 3,419,262 - - 4,652,878 3,419,262 Total non-depreciable assets 22,942,128 21,708,512 1,365,688 1,398,675 24,307,816 23,074,200 Capital assets, being depreciated:

Buildings/structures and improvements 21,926,539 22,727,884 5,174,572 5,387,113 27,101,111 28,114,997 Machinery and equipment 715,199 875,938 463,387 591,508 1,178,586 1,467,446 Right to Use Asset 339,710 452,946 - - 339,710 452,946
Streets 16,690,021 16,898,060 - - 16,690,021 16,898,060 Traffic signals 44,193 45,795 - - 44,193 45,795
Roadway network 2,874,331 2,921,141 - - 2,874,331 2,921,141 Bridge 21,613,794 22,476,728 - - 21,613,794 22,476,728
Storm drainage system 2,070,289 2,166,817 48,394 20,000 2,118,683 2,186,817 Water line system - - 8,478,981 7,920,336 8,478,981 7,920,336 Sewer line system - - 10,680,515 10,800,079 10,680,515 10,800,079 Total depreciable assets, net
of accumulated depreciation 66,274,076 68,565,309 24,845,849 24,719,036 91,119,925 93,284,345 Total capital assets $89,216,204 $90,273,821 $26,211,537 $26,117,711 $115,427,741 $116,358,545 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 7 of the financial statements in this report. As of June 30, 2022, the City had a total long-term outstanding debt of $24.46 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 $18.51 million (75.68%) of the City’s total long-term debt, as of June 30, 2022. Total long-term debt is comprised of loans through IBank, for the City Hall/Town Hall project of $14.32 million, San Diego Association of Governments (SANDAG) of $2.59 million, and County of San Diego of $0.19 million; compensated absences of $0.54 million; leases payable of $0.35 million; and claims payable of $0.52 million. All long-term debt in governmental activities is secured solely by specified revenue sources.
52 April 17, 2023 Item 09
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2022 2021 2022 2021 2022 2021
As restated As restated
Note payable 17,100,794 $ 17,602,114 $ 5,829,843 $ 6,233,225 $ 22,930,637 $ 23,835,339 $ Compensated absences 544,852 574,433 120,489 136,214 665,341 710,647 Claims payable 521,261 392,079 - - 521,261 392,079
Leases Payable 352,059 452,946 - - 352,059 452,946
$ 19,021,572 18,518,966 $ 5,950,332 $ 6,369,439 $ 24,469,298 $ 25,391,011 $ TABLE 5

CITY OF DEL MAR'S OUTSTANDING DEBT
Total

Governmental Activities Business-type Activities
For business-type activities, long-term debt accounts for $5.95 million (24.32%), of the City’s total long-term debt, as of June 30, 2022. The Wastewater fund has a note payable with a remaining balance of $3.20 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 $2.63 million.

Compensated absences in business-type activities accounts for $0.12 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 21-22. The City’s long-term debt decreased by $0.92 million (3.63%) compared to the prior fiscal year, largely due to required annual note principal payments of $0.90 million (3.80%), and compensated absences decreased by $0.05 million (6.38%). In addition, there was a slight increase of $0.13 million (32.95%) in claims payable. Also, during the current year, based on the GASB 87 requirement, lease payable was added to other long-term liabilities and reported a decrease of $0.10 million (22.27%) in the current year.

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, experienced the biggest financial losses during the COVID-19 pandemic. Although some indicators of economic recovery were beginning to occur, the FY 21- 22 adopted budget planned for a gradual return to providing City services at pre-pandemic levels and the restart of several important City capital and special projects. Recovery of some revenue sources returned and exceeded pre-pandemic levels at a faster pace than anticipated which allowed the City to adopt FY 22-23 budget to include restoring all City services to prepandemic levels as well as restoring most 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 anticipation that all revenue sources would reach pre-pandemic levels, management looked at the following key economic factors while preparing the adopted budget for FY 22-23:
53 April 17, 2023 Item 09
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Revenues:

The City’s projected revenues for FY 22-23 total $33.42 million, which is $1.31 million (4.07%) higher than final FY 21-22 projected revenues of $32.11 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 70% 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 although TOT recovered to prepandemic levels in FY 21-22, the FY 22-23 budget projects a full recovery of sales tax revenues to pre-pandemic levels by the end of FY 22-23, a year sooner than originally anticipated.

Expenditures:

The City’s FY 21-22 Operating and Capital Budget has expenditures of $33.42 million, which is $0.19 million (0.57%) higher than the prior fiscal year’s final adopted budget of $33.23 million.

Expenditures are based on anticipated operating needs, capital and special projects, and City Council identified goals and priorities. City staff approached the FY 22-23 budget process with the goal of restoring service levels to pre-pandemic levels and to begin working on capital and special projects that were deferred during the significant pandemic related economic downturn.

The FY 22-23 budget is comprised of the General Fund for $14.39 million (45.77%); Measure Q Fund of $0.08 million (0.25%); other governmental funds of $2.23 million (7.10%); Capital Project Funds of $3.74 million (11.90%); special projects of $0.79 million (2.51%); and the Workers’ Compensation Fund of $0.29 million (0.92%). The business-type funds account for $9.92 million (31.55%).

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 City’s budget is available online at: https://www.delmar.ca.us/132/Budget-Financial-Reports or can be obtained by contacting the City’s Finance Department.

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, or by calling (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. 54 April 17, 2023 Item 09
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55 April 17, 2023 Item 09

GOVERNMENT-WIDE FINANCIAL STATEMENTS
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CITY OF DEL MAR, CALIFORNIA

STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(26)
Governmental Business-Type
Activities Activities Total
ASSETS
Current Assets:

Cash and Investments $ 22,766,332 $ 5,246,105 $ 28,012,437 Receivables:

Accounts, Net 443,182 1,561,125 2,004,307
Taxes 1,656,240 - 1,656,240
Leases 1,314,799 - 1,314,799
Accrued Interest 36,046 8,168 44,214
Inventory - 101,972 101,972
Due from Other Agencies 276,824 - 276,824
Prepaid Expenses 176 - 176
Restricted Cash and Investments - 563,791 563,791
Total Current Assets 26,493,599 7,481,161 33,974,760
Noncurrent Assets:

Capital Assets:

Not Being Depreciated 22,942,128 1,365,688 24,307,816
Being Depreciated (Net of Accumulated Depreciation) 66,274,076 24,845,849 91,119,925 Total Capital Assets 89,216,204 26,211,537 115,427,741
Total Noncurrent Assets 89,216,204 26,211,537 115,427,741 Total Assets 115,709,803 33,692,698 149,402,501

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amounts from Pension Plans 2,275,036 581,765 2,856,801

LIABILITIES
Current Liabilities:

Accounts Payable and Accrued Liabilities 2,331,545 1,131,349 3,462,894 Deposits Payable 704,903 72,623 777,526
Due to Other Agencies 6,236 - 6,236
Unearned Revenue 3,976,938 - 3,976,938
Retention Payable 9,401 19,255 28,656
Accrued Interest Payable 191,514 79,053 270,567
Long-Term Debt, Due Within One Year 1,022,975 444,040 1,467,015 Total Current Liabilities 8,243,512 1,746,320 9,989,832 Noncurrent Liabilities:

Long-Term Debt, Due in More Than One Year 17,495,991 5,506,292 23,002,283 Net Pension Liability 6,620,987 1,726,895 8,347,882
Total Noncurrent Liabilities 24,116,978 7,233,187 31,350,165 Total Liabilities 32,360,490 8,979,507 41,339,997

DEFERRED INFLOWS OF RESOURCES
Deferred Amounts from Leases 1,299,261 - 1,299,261
Deferred Amounts from Pension Plans 5,040,083 1,573,002 6,613,085 Total Deferred Inflow s of Resources 6,339,344 1,573,002 7,912,346

NET POSITION
Net Investment in Capital Assets 71,521,446 20,926,230 92,447,676 Restricted for:

Public Works 527,785 - 527,785
Public Safety 145,532 - 145,532
Community Development 450,663 - 450,663
Unrestricted 6,639,579 2,795,724 9,435,303
Total Net Position $ 79,285,005 $ 23,721,954 $ 103,006,959 58 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(27)
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental Activities:

General Government 7,424,735 $ 2,158,279 $ 83,719 $ $ - Public Safety 7,626,541 2,579,997 153,888 -
Public Works 2,644,194 2,636 188,477 484,867
Parks and Recreation 1,059,781 447,250 - -
Interest on Long-Term Debt 550,712 - - -
Total Governmental Activities 19,305,963 5,188,162 426,084 484,867 Business-Type Activities:

Water 4,043,288 4,363,056 - -
Wastewater 3,337,828 3,884,184 - -
Cleanwater 636,499 577,050 57,316 -
Total Business-Type Activities 8,017,615 8,824,290 57,316 - Total $ 27,323,578 $ 14,012,452 $ 483,400 $ 484,867

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
59 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

STATEMENT OF ACTIVITIES (CONTINUED)
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(28)
Governmental Business-Type
Activities Activities Total
$ - (5,182,737) $ $ (5,182,737)
(4,892,656) - (4,892,656)
(1,968,214) - (1,968,214)
(612,531) - (612,531)
(550,712) - (550,712)
(13,206,850) - (13,206,850)
- 319,768 319,768
- 546,356 546,356
- (2,133) (2,133)
- 863,991 863,991
(13,206,850) 863,991 (12,342,859)
7,771,396 - 7,771,396
3,419,866 - 3,419,866
404,226 - 404,226
282,187 - 282,187
5,456,137 - 5,456,137
151,499 - 151,499
(139,964) (112,089) (252,053)
549,295 - 549,295
(87,871) 87,871 -
17,806,771 (24,218) 17,782,553
4,599,921 839,773 5,439,694
74,685,084 22,882,181 97,567,265
$ 79,285,005 $ 23,721,954 $ 103,006,959
Net Revenue (Expense) and
Change in Net Position
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61 April 17, 2023 Item 09

FUND FINANCIAL STATEMENTS
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CITY OF DEL MAR, CALIFORNIA

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(32)
Capital
Projects Fund Nonmajor
Capital Governmental
General Fund Improvement Funds Total
ASSETS
Cash and Investments $ 16,748,590 $ 3,966,319 $ 1,328,484 $ 22,043,393 Receivables:

Taxes 1,656,240 - - 1,656,240
Accrued Interest 30,362 3,435 1,217 35,014
Accounts, Net 371,684 - 71,498 443,182
Leases 1,314,799 1,314,799
Due from Other Agencies 22,047 254,777 - 276,824
Due from Other Funds 26,481 - - 26,481
Prepaid Items 88 - 88 176
Total Assets $ 20,170,291 $ 4,224,531 $ 1,401,287 $ 25,796,109

LIABILITIES
Accounts Payable and Accrued Liabilities 2,091,560 $ $ 147,006 $ 92,979 $ 2,331,545 Deposits Payable 650,754 - 54,149 704,903
Due to Other Agencies 6,236 - - 6,236
Due to Other Funds - - 26,481 26,481
Unearned Revenue 520,654 3,456,284 - 3,976,938
Retention Payable 3,751 5,650 - 9,401
Total Liabilities 3,272,955 3,608,940 173,609 7,055,504

DEFERRED INFLOW OF RESOURCES
Leases 1,299,261 - - 1,299,261
Unavailable Revenues 112,633 254,777 - 367,410
Total Deferred Inflows of Resources 1,411,894 254,777 - 1,666,671

FUND BALANCES
Nonspendable 88 - 88 176
Restricted - - 869,203 869,203
Committed - - 358,387 358,387
Assigned 9,953,902 360,814 - 10,314,716
Unassigned 5,531,452 - - 5,531,452
Total Fund Balances 15,485,442 360,814 1,227,678 17,073,934 Total Liabilities, Deferred Inflow of
Resources and Fund Balances 20,170,291 $ $ 4,224,531 $ 1,401,287 $ 25,796,109 64 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(33)
Fund Balances of Governmental Funds $ 17,073,934
Amounts reported for governmental activities in the statement of net position are different because:

Capital assets, net of $21,500,052 of accumulated depreciation, used in governmental activities are not current financial resources and, therefore, are not included in the funds. 89,216,204 Interest expenditures are recognized when due, and therefore, interest payable is not recorded in the governmental funds. (191,514)
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 (17,100,794)
Lease Payable (352,059)
Claims Payable (196,649)
Compensated Absences (544,853)
Revenues are deferred in the fund statements due to lack of availability. In the statement of activities, the amounts are recognized as revenue. 367,410 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. 399,360 Net pension liabilities in 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 2,275,036
Deferred Inflows of Resources (5,040,083)
Pension Liability (6,620,987)
Net Position of Governmental Activities $ 79,285,005
65 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(34)
Capital
Projects Fund Nonmajor
Capital Governmental
General Fund Improvement Funds Total

REVENUES
Taxes 17,338,731 $ - $ $ 27,412 $ 17,366,143
Licenses, Fees, and Permits 1,268,257 424,487 1,692,744 - Intergovernmental 100,141 211,768 598,612 910,521
Charges for Services 2,492,438 - - 2,492,438
Fines and Forfeitures 1,066,270 - - 1,066,270
Investment Income (Loss) (90,411) (32,712) (16,841) (139,964) Contributions 43,719 - 40,000 83,719
Other 264,346 227,511 - 491,857
Total Revenues 22,483,491 179,056 1,301,181 23,963,728

EXPENDITURES
Current:

General Government 6,019,989 44,148 245,997 6,310,134
Public Safety 7,157,782 - 49,024 7,206,806
Public Works 318,618 586,208 - 904,826
Parks and Recreation - 1,016,920 - 1,016,920
Capital Outlay 907,054 763,030 160,311 1,830,395
Debt Service:

Principal 100,887 391,061 110,259 602,207
Interest 10,551 470,453 74,923 555,927
Total Expenditures 14,514,881 1,668,692 2,243,642 18,427,215

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 7,968,610 (1,489,636) (942,461) 5,536,513

OTHER FINANCING SOURCES (USES)
Transfers In 319,218 1,542,080 1,643,850 3,505,148
Transfers Out (3,273,801) (319,218) - (3,593,019)
Total Other Financing Sources (Uses) (2,954,583) 1,542,080 1,324,632 (87,871) NET CHANGE IN FUND BALANCES 5,014,027 52,444 382,171 5,448,642 Fund Balances - Beginning of Year 10,471,415 308,370 845,507 11,625,292 FUND BALANCES - END OF YEAR $ 360,814 15,485,442 $ $ 1,227,678 $ 17,073,934 66 April 17, 2023 Item 09

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, 2022
See accompanying Notes to Financial Statements.
(35)
Net Change in Fund Balances of Governmental Funds $ 5,448,642 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 1,805,032
Depreciation Expense (2,849,325)
Loss on Disposal (13,324)
Repayment of debt service principal is an expenditure in governmental funds, but the repayment reduces long-term liabilities in the statement of net position. 602,207 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 will be recorded in the fund statements. 30,027
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 29,580
Change in Claims Payable (157,190)
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. 5,215 Pension expenditures 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. (307,637) 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. 6,694 Change in Net Position of Governmental Activities $ 4,599,921 67 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

PROPRIETARY FUNDS

STATEMENT OF NET POSITION
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(36)
Governmental
Activities -
Nonmajor: Internal
Water Wastew ater Clean Water Total Service Fund
ASSETS
Current Assets:

Cash and Investments 2,609,296 $ 2,443,332 $ 193,477 $ $ 5,246,105 $ 722,939 Receivables:

Accounts 807,519 651,671 101,935 1,561,125 -
Interest 3,734 4,302 132 8,168 1,032
Inventory 90,905 11,067 - 101,972 -
Restricted Cash and Investments - 563,791 - 563,791 -
Total Current Assets 3,511,454 3,674,163 295,544 7,481,161 723,971 Noncurrent Assets:

Capital Assets:

Land and Water Rights 782,025 583,663 - 1,365,688 -
Water and Wastew ater System 15,523,906 19,000,377 49,000 34,573,283 - Buildings and Improvements 4,039,761 4,293,450 - 8,333,211 - Machinery and Equipment 291,928 1,769,774 36,467 2,098,169 - Less: Accumulated Depreciation (9,080,237) (11,056,229) (22,348) (20,158,814) - Total Capital Assets (Net of
Accumulated Depreciation) 11,557,383 14,591,035 63,119 26,211,537 - Total Noncurrent Assets 11,557,383 14,591,035 63,119 26,211,537 - Total Assets 15,068,837 18,265,198 358,663 33,692,698 723,971

DEFERRED OUTFLOWS OF RESOURCES
Deferred Amounts from Pension Plans 290,115 291,650 - 581,765 -

LIABILITIES
Current Liabilities:

Accounts Payable 443,567 642,701 45,081 1,131,349 -
Retention Payable 12,146 - 7,109 19,255 -
Customer Deposits 72,623 - - 72,623 -
Claims Payable - - - - 259,689
Accrued Interest Payable 44 79,009 - 79,053 -
Current Portion of Long-Term Liabilities 13,343 426,975 3,722 444,040 - Total Current Liabilities 541,723 1,148,685 55,912 1,746,320 259,689 Long-Term Liabilities:

Claims Payable - - - - 64,922
Compensated Absences 40,029 39,172 11,166 90,367 -
Notes Payable - 5,415,925 - 5,415,925 -
Net Pension Liability 861,169 865,726 - 1,726,895 -
Total Noncurrent Liabilities 901,198 6,320,823 11,166 7,233,187 64,922 Total Liabilities 1,442,921 7,469,508 67,078 8,979,507 324,611

DEFERRED INFLOWS OF RESOURCES
Deferred Amounts from Pension Plans 784,426 788,576 - 1,573,002 -

NET POSITION
Net Investment in Capital Assets 11,545,237 9,324,983 56,010 20,926,230 - Unrestricted 1,586,368 973,781 235,575 2,795,724 399,360 Total Net Position $ 13,131,605 $ 10,298,764 $ 291,585 $ 23,721,954 $ 399,360 Business-Type Activities - Enterprise Funds
68 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(37)
Governmental
Activities -
Nonmajor: Internal
Water Wastew ater Clean Water Total Service Fund

OPERATING REVENUES
Water Sales 4,203,924 $ - $ $ - $ 4,203,924 $ -
Clean Water Services - - 574,833 574,833 -
Sew er Service - 3,865,694 - 3,865,694 -
Charges for Services - - - - 249,995
Customer Penalties 12,855 11,787 2,217 26,859 -
Other 146,277 6,703 57,316 210,296 -
Total Operating Revenues 4,363,056 3,884,184 634,366 8,881,606 249,995

OPERATING EXPENSES
Source of Supply 1,647,167 - - 1,647,167 -
Water Treatment 445,740 - - 445,740 -
Maintenance and Operation - 34,672 92,114 126,786 -
General and Administrative 1,570,168 2,489,091 541,581 4,600,840 228,848 Depreciation 380,213 695,498 2,804 1,078,515 -
Total Operating Expenses 4,043,288 3,219,261 636,499 7,899,048 228,848 OPERATING INCOME (LOSS) 319,768 664,923 (2,133) 982,558 21,147

NONOPERATING REVENUES (EXPENSES)
Investment Income (Loss) (51,460) (58,638) (1,991) (112,089) (14,453) Interest Expense - (118,567) - (118,567) -
Total Nonoperating Revenues
(Expenses) (51,460) (177,205) (1,991) (230,656) (14,453) INCOME (LOSS) BEFORE TRANSFERS 268,308 487,718 (4,124) 751,902 6,694

TRANSFERS
Transfers In - - 100,845 100,845 -
Transfers Out (6,487) (6,487) - (12,974) -
Total Transfers (6,487) (6,487) 100,845 87,871 -
CHANGES IN NET POSITION 261,821 481,231 96,721 839,773 6,694 Net Position - Beginning of Year 12,869,784 9,817,533 194,864 22,882,181 392,666 NET POSITION - END OF YEAR $ 13,131,605 $ 10,298,764 $ 291,585 $ 23,721,954 $ 399,360 Business-Type Activities -
Enterprise Funds
69 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(38)
Governmental
Activities -
Nonmajor: Internal
Water Wastewater Clean Water Total Service Fund

CASH FLOWS FROM OP ERATING ACTIVITIES
Cash Received from Water, Sewer, and Clean Water Customers 4,134,781 $ 3,784,764 $ 577,402 $ 8,496,947 $ - $ Cash Received from Other Operating Receipts 146,277 6,703 57,316 210,296 249,995 Cash Payments for Water Purchases, Distribution, and Treatment (2,092,907) - (2,092,907) - - Cash Payments for Sewer Collection and M aintenance - (34,672) - (34,672) - Cash Payments for Services and Supplies (855,293) (1,791,725) (493,825) (3,140,843) (147,709) Cash Payment to Employees for Services (547,300) (630,741) (150,219) (1,328,260) (109,148) Net Cash Provided (Used) by Operating Activities 785,558 1,334,329 (9,326) 2,110,561 (6,862)

CASH FLOWS FROM NONCAP ITAL FINANCING ACTIVITIES
Cash Received (Paid) to/from Other Funds (6,487) (6,487) 100,845 87,871 - Net Cash Provided (Used) by Noncapital
Financing Activities (6,487) (6,487) 100,845 87,871 -

CASH FLOWS FROM CAP ITAL AND RELATED

FINANCING ACTIVITIES
Acquisition and Construction of Capital Assets (826,069) (317,272) (27,142) (1,170,483) - Interest Payments on Long-Term Debt (124,232) (10) - (124,242) - Principal Payments on Long-Term Debt - (390,324) - (390,324) - Net Cash Used by Capital and
Related Financing Activities (826,079) (831,828) (27,142) (1,685,049) -

CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received 14,278 13,044 596 27,918 3,666
Change in Fair Value (67,178) (73,806) (2,608) (143,592) (18,523) Net Cash Used by Investing Activities (52,900) (60,762) (2,012) (115,674) (14,857)

NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (99,908) 435,252 62,365 397,709 (21,719) Cash and Cash Equivalents - Beginning of Year 2,709,204 2,571,871 131,112 5,412,187 744,658 CASH AND CASH EQUIVALENTS - END OF YEAR $ 2,609,296 $ 3,007,123 $ 193,477 $ 5,809,896 $ 722,939

CASH AND CASH EQUIVALENTS
Cash and Investments $ 2,609,296 $ 2,443,332 $ 193,477 $ 5,246,105 $ 722,939 Restricted - Cash and Investments - 563,791 - 563,791 - $ 2,609,296 $ 3,007,123 $ 193,477 $ 5,809,896 $ 722,939

RECONCILIATION OF OP ERATING INCOM E (LOSS) TO

NET CASH P ROVIDED (USED) BY OP ERATING ACTIVITIES
Operating Income (Loss) $ 319,768 $ 664,923 $ (2,133) $ 982,558 $ 21,147 Adjustments to Reconcile Operating Income (Loss) to
Net Cash Provided (Used) by Operating Activities:

Depreciation 380,213 695,498 2,804 1,078,515 -
Changes in Operating Assets, Deferred Outflows of
Resources, Liabilities, and Deferred Inflows of Resources:
(Increase) Decrease in Accounts Receivable (59,983) (92,717) (152,348) 352 - (Increase) Decrease in Prepaid Expense 12,028 12,028 - 24,056 - (Increase) Decrease in Inventory (29,116) 178 - (28,938) - (Increase) Decrease in Deferred Outflows of Resources 5,379 5,407 - 10,786 - Increase (Decrease) in Claims Payable - - - - (28,009)
Increase (Decrease) in Accounts Payable 58,411 (13,500) (16,665) 28,246 - Increase (Decrease) in Retentions Payable 12,146 - 7,109 19,255 - Increase (Decrease) in Customer Deposits 7,101 - - 7,101 - Increase (Decrease) in Net Pension Liability (674,832) (678,402) - (1,353,234) - Increase (Decrease) in Compensated Absences (5,221) (22,769) (793) (28,783) - Increase (Decrease) in Deferred Inflows of Resources 759,664 763,683 - 1,523,347 - Total Adjustments 465,790 669,406 (7,193) 1,128,003 (28,009) Net Cash Provided (Used) by Operating Activities $ 785,558 $ 1,334,329 $ (9,326) $ 2,110,561 $ (6,862) Business-Type Activities - Enterprise Funds
70 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

FIDUCIARY FUNDS

STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2022
See accompanying Notes to Financial Statements.
(39)
Custodial
Fund
ASSETS
Account Receivable $ 284
Restricted Assets:

Cash and Investments 198,552
Total Assets 198,836

NET POSITION
Restricted for Bond Holders 198,836
Total Net Position $ 198,836
71 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

FIDUCIARY FUNDS

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Financial Statements.
(40)
Custodial
Fund

ADDITIONS
Investment Income (Loss) $ (4,041)
Special Assessments or Special Taxes Collected from Property Owners 52,970 Total Additions 48,929

DEDUCTIONS
Payment for Special Assessment or Special Tax Debt 58,873 Total Deductions 58,873
CHANGE IN NET POSITION (9,944)
Total Net Position - Beginning of Year 208,780
TOTAL NET POSITION - END OF YEAR $ 198,836
72 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(41)
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.
73 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(42)
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.
74 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(43)
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 the economic resources 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). 75 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(44)
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.
76 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(45)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) D. New Accounting Pronouncements
GASB Statement No. 87, Leases
In June 2017, the GASB issued GASB Statement No. 87, Leases. This standard requires the recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and as inflows of resources or outflows of resources recognized based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this standard, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources.

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. 77 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(46)
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. 78 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(47)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) K. Restricted Assets
Restricted assets consist of cash and investments held in the Wastewater Enterprise Fund related to debt and 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 assets that applies to future periods 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.

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 assets that applies to future periods 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 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.
 Deferred inflow 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.
 Deferred inflow related to leases are amortized on a straight line basis over the length of the lease agreement.
79 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(48)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Leased Property
Lessee
The City is a lessee for noncancellable lease of property. The City recognizes a lease liability and an intangible right-to-use lease asset (lease asset) in the applicable governmental activities or business-type activities in the government-wide and in the proprietary fund financial statements. The City recognizes lease liabilities with an initial individual value of $10,000 or more. At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life.

Lessor
The City recognizes a lease receivable and a deferred inflow of resources in the applicable governmental activities or business-type activities in the government-wide and in the governmental and proprietary fund financial statements. At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term.

N. 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
80 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(49)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. 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.

P. 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).

Q. 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.
81 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(50)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Q. 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, 2022
(51)
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Q. 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.

R. 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.

S. 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, 2022 are classified in the accompanying financial statements as follows:

Statement of Net Position:

Cash and Investments 28,012,437 $
Restricted Cash and Investments 563,791
Statement of Fiduciary Assets and Liabilities:

Restricted Cash and Investments 198,552
Total Cash and Investments $ 28,774,780
83 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(52)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Cash and investments as of June 30, 2022 consist of the following:

Cash and Deposits:

Petty Cash on Hand 900 $
Demand Deposits 1,977,690
Total Cash and Deposits 1,978,590
Investments:

Federal Agency Securities 184,880
State Investment Pool 19,657,799
Investment in County Pool 2,724,746
Negotiable Certificates of Deposit 4,228,765
Total Investments 26,796,190
Total Cash and Investments $ 28,774,780
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. 84 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(53)
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 - $ $ - $ 184,880 $ 184,880
State Investment Pool 19,657,799 - 19,657,799 -
Investment in County Pool 2,724,746 - 2,724,746 -
Negotiable Certificates of Deposit 735,811 696,145 2,796,809 4,228,765 Total $ 696,145 23,118,356 $ $ 2,981,689 $ 26,796,190
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 184,880 $ - $ 184,880 $ - $
State Investment Pool 19,657,799 N/A - - 19,657,799
Investment in County Pool 2,724,746 N/A 2,724,746 - -
Negotiable Certificates
of Deposit 4,228,765 N/A - - 4,228,765
Total $ 26,796,190 $ 2,724,746 $ 184,880 $ 23,886,564
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.
85 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(54)
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, 2022, 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.
86 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(55)
NOTE 2 CASH AND INVESTMENTS (CONTINUED)
Fair Value Measurement (Continued)
The City has the following recurring fair value measurements as of June 30, 2022:

Level 1 Level 2 Level 3 Total
Negotiable Certificates of Deposit - $ $ 4,228,765 $ - $ 4,228,765 Federal Agency Securities 184,880 - - 184,880
Total Leveled Investments $ - $ 4,413,645 $ - 4,413,645 State Investment Pool* 19,657,799
Investment in County Pool* 2,724,746
Total Investment Portfolio $ 26,796,190
* 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, 2022 is as follows:

Balance at
July 1, 2021 Balance at
As Restated Additions Deletions June 30, 2022
Governmental Activities
Capital Assets,
Not Being Depreciated:

Land $ - 18,289,250 $ $ - $ 18,289,250
Construction in Progress 3,419,262 1,481,908 (248,292) 4,652,878 Total Capital Assets, Not
Being Depreciated 21,708,512 1,481,908 (248,292) 22,942,128 Capital Assets, Being Depreciated:

Buildings and Improvements 28,824,442 74,109 (13,324) 28,885,227 Machinery and Equipment 2,417,154 44,016 (43,473) 2,417,697 Right to Use Asset 452,946 - 452,946 -
Infrastructure 55,564,967 453,291 - 56,018,258
Total Capital Assets,
Being Depreciated 87,259,509 571,416 (56,797) 87,774,128 Less Accumulated Depreciation for:

Buildings and Improvements (6,096,558) (862,130) - (6,958,688) Machinery and Equipment (1,541,216) (204,755) 43,473 (1,702,498) Right to Use Asset (113,236) - - (113,236)
Infrastructure (11,056,426) (1,669,204) - (12,725,630)
Total Accumulated
Depreciation (18,694,200) (2,849,325) 43,473 (21,500,052) Total Capital Assets,
Being Depreciated, Net 68,565,309 (2,277,909) (13,324) 66,274,076 Total Governmental Activities
Capital Assets, Net $ (796,001) 90,273,821 $ $ (261,616) $ 89,216,204 87 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(56)
NOTE 3 CAPITAL ASSETS (CONTINUED)
Depreciation expense was charged to functions for the fiscal year ended June 30, 2022 as follows:

Governmental Activities:

General Government 662,271 $
Public Safety 219,820
Public Works 1,705,168
Parks and Recreation 37,148
Community Services 224,918
Total Depreciation Expense $ 2,849,325
A summary of changes in the business-type activities capital assets for the year ended June 30, 2022 is as follows:

Balance at Balance at
July 1, 2021 Additions Deletions June 30, 2022
Business-Type Activities
Capital Assets,
Not Being Depreciated:

Land $ 1,365,688 $ - $ - $ 1,365,688
Construction in Progress 32,987 1,143,341 (1,176,328) - Total Capital Assets, Not
Being Depreciated 1,398,675 1,143,341 (1,176,328) 1,365,688 Capital Assets, Being Depreciated:

Buildings 4,080,948 - 4,080,948 -
Improvements 4,252,263 - 4,252,263 -
Machinery and Equipment 2,112,647 (14,478) 2,098,169
Water System 14,952,463 842,690 (271,247) 15,523,906
Storm Drains 20,000 29,000 49,000
Wastewater System 18,916,739 333,638 (250,000) 19,000,377 Total Capital Assets,
Being Depreciated 44,335,060 1,205,328 (535,725) 45,004,663 Less Accumulated Depreciation for:

Buildings (1,128,512) (121,967) - (1,250,479)
Improvements (1,817,586) (90,574) - (1,908,160)
Machinery and Equipment (1,521,139) (128,121) 14,478 (1,634,782) Water System (7,032,127) (284,045) 271,247 (7,044,925)
Storm Drains - (606) - (606)
Wastewater System (8,116,660) (453,202) 250,000 (8,319,862) Total Accumulated
Depreciation (19,616,024) (1,078,515) 535,725 (20,158,814) Total Capital Assets,
Being Depreciated, Net 24,719,036 126,813 - 24,845,849
Total Business-Type Activities
Capital Assets, Net $ 1,270,154 26,117,711 $ $ (1,176,328) $ 26,211,537 88 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(57)
NOTE 3 CAPITAL ASSETS (CONTINUED)
Depreciation expense was charged to functions for the fiscal year ended June 30, 2022 as follows:

Business-Type Activities:

Water $ 380,213
Wastewater 695,498
Clean Water 2,804
Total Depreciation Expense $ 1,078,515
NOTE 4 LEASE RECEIVABLE
The City, acting as lessor, leases a wireless celltower and land under long-term, noncancelable lease agreements. The leases expire at various dates through 2042 and do not provide for renewal options. During the year ended June 30, 2022, the City recognized $108,802 and $42,272 in lease revenue and interest revenue, respectively, pursuant to these contracts.

NOTE 5 INTERFUND RECEIVABLES AND PAYABLES
At June 30, 2022, interfund receivables and payables are as follows:

Due From Due To
General Fund $ 26,481 $ -
Nonmajor Governmental Funds:

Supplemental Law Enforcement Special Revenue Fund - 225 Regional Communications System - 12,276
RMRA Special Revenue Fund - 13,980
Total $ 26,481 $ 26,481
The above balances are primarily due to the reclassification of negative cash balances in the city-wide cash pool.
89 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(58)
NOTE 6 INTERFUND TRANSFERS
Interfund transfers for the fiscal year ended June 30, 2022 were as follows:

Nonmajor
General Governmental Water Wastewater
Transfers In Fund Funds Fund Fund Total
General Fund (B) - $ 319,218 $ - $ $ - $ 319,218
Capital Improvement Capital
Projects Fund (A) 1,542,080 - - 1,542,080 -
Nonmajor Governmental
Funds (B) 1,630,876 6,487 - 6,487 1,643,850
Nonmajor Enterprise Fund
Clear Water Fund (C) 100,845 - - 100,845 -
Total $ 3,273,801 $ 319,218 $ 6,487 $ 6,487 $ 3,605,993 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.

C. To fund current and future capital improvement projects. 90 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(59)
NOTE 7 CHANGES IN LONG-TERM LIABILITIES
A summary of changes in long-term liabilities for the fiscal year ended June 30, 2022 is as follows:

Balance
July 1, 2021 Balance Due Within
As Restated Additions Deletions June 30, 2022 One Year
Governmental Activities:

Direct Borrow ings:

Note Payable 2,653,750 $ - $ $ (66,250) $ 2,587,500 $ 70,000 Note Payable - City Hall 14,715,692 - (391,061) 14,324,631 403,731 Note Payable - Regional
Communications 232,672 - (44,009) 188,663 45,237
Other Long-Term Liabilities:

Compensated Absences 574,433 435,444 (465,025) 544,852 136,213 Leases Payable 452,946 - (100,887) 352,059 108,105
Claims Payable 392,079 313,435 (184,253) 521,261 259,689 Total Governmental
Activities $ 19,021,572 $ 748,879 $ (1,251,485) $ 1,022,975 18,518,966 $ Business-Type Activities:

Direct Borrow ings:

Notes Payable $ 6,233,225 $ - $ (403,382) $ 5,829,843 $ 413,918 Other Long-Term Liabilities:

Compensated Absences 136,214 104,975 (120,700) 120,489 30,122 Total Business-Type
Activities $ 6,369,439 $ 104,975 $ (524,082) $ 5,950,332 $ 444,040 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. 91 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(60)
NOTE 7 CHANGES IN LONG-TERM LIABILITIES (CONTINUED)
Governmental Long-Term Debt (Continued)
The future debt service requirements for this note are as follows:

Fiscal Year Ending Principal Interest Total
2023 70,000 65,173 135,173
2024 71,250 61,507 132,757
2025 76,250 58,369 134,619
2026 80,000 57,202 137,202
2027 81,250 55,833 137,083
2028 - 2032 481,250 249,836 731,086
2033 - 2037 617,500 184,103 801,603
2038 - 2042 785,000 103,203 888,203
2043 - 2044 325,000 22,938 347,938
Total $ 2,587,500 $ 858,164 $ 3,445,664
Note Payable – City Hall
Del Mar borrowed $16,161,000 for its City Hall Project. 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
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 458,653 401,765.00 860,418
2028 - 2032 2,526,038 1,772,287 4,298,325
2033 - 2037 2,962,647 1,328,605 4,291,252
2038 - 2042 3,474,720 807,636 4,282,356
2043 - 2046 3,207,454 211,984 3,419,438
Total $ 14,324,631 $ 6,271,093 $ 20,595,724
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.
92 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(61)
NOTE 7 CHANGES IN LONG-TERM LIABILITIES (CONTINUED)
Governmental Long-Term Debt (Continued)
The future debt service requirements for this note are as follows:

Fiscal Year Ending Principal Interest Total
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 $ 188,663 $ 13,341 $ 202,004
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
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 281,626 62,391 344,017
2028 - 2032 1,535,477 184,608 1,720,085
2033 334,322 9,695 344,017
Total $ 3,200,763 $ 583,424 $ 3,784,187
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, 2022 totaled $1,301,783 and total debt service (principal and interest) paid during the year was $309,568 for the note payable. 93 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(62)
NOTE 7 CHANGES IN LONG-TERM LIABILITIES (CONTINUED)
Business-Type Long-Term Debt (Continued)
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 2021-2022 is $218,082. The City’s net revenue in fiscal year 2021-2022 is $1,301,783 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.

The future debt service requirements for this note are as follows:

Fiscal Year Ending Principal Interest Total
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 177,314 40,536 217,850
2028 - 2032 945,981 142,624 1,088,606
2033 - 2036 833,398 36,655 870,053
Total $ 2,629,079 $ 419,230 $ 3,048,309
Leases
The City leases land under a long-term, noncancelable lease agreement. The lease expires at 2025 and does not have a renewal option.

Total future minimum lease payments are as follows:

Fiscal Year Ending June 30, Principal Interest Total
2023 $ 108,105 $ 8,905 $ 117,010
2024 117,104 5,758 122,862
2025 126,850 2,154 129,004
$ 352,059 $ 16,817 $ 368,876
94 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(63)
NOTE 8 FUND BALANCES
Capital
Improvement Nonmajor
General Capital Governmental
Fund Projects Fund Funds Total
Nonspendable:

Prepaid Items $ 88 $ - $ 88 $ 176
Total Nonspendable 88 - 88 176
Restricted for:

Public Safety - 145,532 - 145,532
Public Works - 262,409 - 262,409
Street Projects - - 10,599 10,599
Low-Income Housing - 450,663 - 450,663
Total Restricted - 869,203 - 869,203
Committed to:

Parks and Community Center - 358,387 - 358,387
Total Committed - 358,387 - 358,387
Assigned to:

Compensated Absences 100,000 - 100,000 -
Equipment Replacement 981,630 - 981,630 -
Public Television 3,435 - - 3,435
Self-Insurance 450,000 - 450,000 -
Pension Reserve 2,292,700 - 2,292,700 -
Special Projects 432,630 - 432,630 -
Measure Q 5,693,507 - 5,693,507
Capital Projects 360,814 - - 360,814
Total Assigned 9,953,902 360,814 - 10,314,716
Unassigned 5,531,452 - 5,531,452 -
Total Fund Balances $ 360,814 15,485,442 $ $ 1,227,678 $ 17,073,934 95 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(64)
NOTE 8 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 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.

Assigned to Measure Q are funds used for the acquisition and construction of major capital projects.
96 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
(65)
NOTE 9 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, 2022 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 7.80% 6.92% 7.00%
Required Employer Contribution Rates:

Normal Cost Rate 14.850% 8.970% 7.650%
Payment of Unfunded Liability $ 601,960 $ 2,652 $ 2,120 Miscellaneous
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NOTE 9 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 5057 5050
Monthly Benefits, as a Percentage
of Eligible Compensation 3.00% 2.70% 3.00% 2.70%
Required Employee Contribution Rates 8.99% 13.00% 8.95% 13.00% Required Employer Contribution Rates:

Normal Cost Rate 22.480% 13.130% 18.190% 13.130%
Payment of Unfunded Liability $ 342,474 $ 1,330 $ 93,150 $ 546 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, 2022 of $1,024,043 and $674,037, respectively.

B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2022, the City reported net pension liabilities for its proportionate shares of the net pension liability of all Plans as follows:

Proportionate
Share of
Net Pension
Liability
Miscellaneous 4,556,451 $
Safety 3,791,431
Total Net Pension Liability $ 8,347,882
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NOTE 9 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, 2021, 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, 2020 rolled forward to June 30, 2021 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, 2020 and 2021 was as follows:

Miscellaneous Safety
Proportion - June 30, 2020 0.19267 % 0.09021 %
Proportion - June 30, 2021 0.23996 0.09424
Change - Increase (Decrease) 0.04729 % 0.00403 %
For the year ended June 30, 2022, the City recognized pension expense of $2,186,615 ($1,501,349 – Miscellaneous Plan and $685,266 – Safety Plan). At June 30, 2022, 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 $ 1,024,043 $ 674,037 - $ $ -
Differences Between Expected
and Actual Experience 510,958 - 647,763 -
Change in Employer's Proportion
and Differences Between the
Employer's Contributions and the
Employer's Proportionate Share
of Contributions - (172,861) - (206,052)
Net Differences Between
Projected and Actual Earnings
on Plan Investments - (3,977,542) - (2,256,630)
Total $ 1,535,001 $ 1,321,800 (4,150,403) $ $ (2,462,682) Miscellaneous Safety
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NOTE 9 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
$1,698,080 ($1,024,043 – Miscellaneous Plan and $674,037 – 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, 2023. 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
2023 (792,885) $ (323,127) $
2024 (830,762) (379,973)
2025 (916,610) (490,825)
2026 (1,099,188) (620,994)
2027 - -
Thereafter - -
Actuarial Assumptions
The total pension liability for the June 30, 2021 measurement period was determined by an actuarial valuation as of June 30, 2020, with update procedures used to roll forward the total pension liability to June 30, 2021. The total pension liability was based on the following assumptions:

Miscellaneous Safety
Valuation Date June 30, 2020 June 30, 2020
Measurement Date June 30, 2021 June 30, 2021
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.
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NOTE 9 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
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NOTE 9 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 9,138,775 $ 4,556,451 $ 768,310 $ Miscellaneous
Current
1% Decrease Discount Rate 1% Increase
(6.15%) (7.15%) (8.15%)
City's Proportionate Share of the
Net Pension Liability 6,763,183 $ 3,791,431 $ 1,350,504 $ 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.
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NOTE 9 RETIREMENT PLANS (CONTINUED)
B. Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions (Continued)
Subsequent Events
On July 12, 2021, CalPERS reported a preliminary 21.3% net return on investments for fiscal year 2020-2021. Based on the thresholds specified in CalPERS Funding Risk Mitigation policy, the excess return of 14.3% prescribes a reduction in investment volatility that corresponds to a reduction in the discount rate used for funding purposes of 0.20%, from 7.00% to 6.80%. Since CalPERS was in the final stages of the four-year Asset Liability Management (ALM) cycle, the board elected to defer any changes to the asset allocation until the ALM process concluded, and the board could make its final decision on the asset allocation in November 2021.

On November 17, 2021, the board adopted a new strategic asset allocation. The new asset allocation along with the new capital market assumptions, economic assumptions and administrative expense assumption support a discount rate of 6.90% (net of investment expense but without a reduction for administrative expense) for financial reporting purposes. This includes a reduction in the price inflation assumption from

2.50% to 2.30% as recommended in the November 2021 CalPERS Experience Study and Review of Actuarial Assumptions. This study also recommended modifications to retirement rates, termination rates, mortality rates and rates of salary increases that were adopted by the board. These new assumptions will be reflected in the GASB 68 accounting valuation reports for the June 30, 2022, measurement date.

C. Payable to the Pension Plans
At June 30, 2022, the City had no outstanding amount of contributions to the pension plans required for the year ended June 30, 2022.

NOTE 10 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 $11,560 to the plan during fiscal year 2021- 2022.
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NOTE 11 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 12 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, 2022, construction contracts totaled $5,815,508 of which $2,868,726 has been expended. City commitments for outstanding encumbrances (purchase orders and contracts for goods and services not yet delivered) by major governmental funds is $2,709,245 for capital improvements in the City and is shown as committed, assigned or restricted.
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NOTE 13 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 14 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 $25,000,000 of pooled liability insurance for each occurrence is covered by PRISM, with an additional $25,000,000 of purchased liability for a total of $50,000,000. Specific coverage includes bodily injury, property damage, municipal errors and omissions and personal injury.

The City accounts for general liability as part of long-term debt in governmental activities. 105 April 17, 2023 Item 09

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NOTE 14 RISK MANAGEMENT (CONTINUED)
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, 2022:

General Workers'
Liability Compensation
Unpaid Claims - June 30, 2020 $ 431,040 $ 348,665
Incurred Claims (Including IBNR) 3,273,419 135,245
Claims Payments (3,665,000) (131,290)
Unpaid Claims - June 30, 2021 39,459 352,620
Incurred Claims (Including IBNR) 204,287 109,148
Claims Payments (47,097) (137,156)
Unpaid Claims - June 30, 2022 $ 196,649 $ 324,612
The general liability claims are recorded in the governmental activities. 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, 2022.

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 15 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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NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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NOTE 15 ASSESSMENT DISTRICT BOND ISSUES (CONTINUED)
At June 30, 2022, 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, 2022 were $240,000.
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REQUIRED SUPPLEMENTARY INFORMATION
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MISCELLANEOUS PLAN

SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (79)
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.

From fiscal year June 30, 2021 to June 30, 2022:

There were no changes in assumptions.
* Fiscal year 2015 was the first year of implementation and therefore only eight 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.
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MISCELLANEOUS PLAN

SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY (CONTINUED) LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (80)
June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 June 30, 2022 June 30, 2017 June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021

0.17671 % 0.18155 % 0.18627 % 0.19267 % 0.23996 %
$ 6,966,181 $ 6,842,255 $ 7,459,379 $ 8,126,992 $ 4,556,451 $ 3,198,271 $ 3,211,144 $ 3,595,869 $ 3,860,641 $ 3,735,541 217.81 % 213.08 % 207.44 % 210.51 % 121.98 %

73.31 % 75.26 % 75.26 % 75.24 % 86.87 %
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MISCELLANEOUS PLAN
SCHEDULE OF CONTRIBUTIONS – DEFINED BENEFIT PENSION PLAN LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (81)
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 eight years are shown. (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
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MISCELLANEOUS PLAN
SCHEDULE OF CONTRIBUTIONS – DEFINED BENEFIT PENSION PLAN (CONTINUED) LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (82)
June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 June 30, 2022 $ 617,792 $ 742,811 $ 848,836 $ 903,226 $ 1,024,043
(617,792) (742,811) (848,836) (903,226) (1,024,043)
$ - $ - $ - $ - $ -
$ 3,211,144 $ 3,595,869 $ 3,860,641 $ 3,735,541 $ 3,786,039

19.24 % 20.66 % 21.99 % 24.18 % 27.05 %
6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019
Entry age Entry age Entry age Entry age Entry age
(1) (1) (1) (1) (1)
Market Value Market Value Market Value Market Value Market Value

2.75 % 2.75 % 2.65 % 2.50 % 2.50 %
(2) (2) (2) (2) (2)

7.50% (3) 7.375% (3) 7.25% (3) 7.00% (3) 7.00% (3)
(4) (4) (4) (4) (4)
(5) (5) (5) (5) (5)
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SAFETY PLAN

SCHEDULE OF PROPORTIONATE SHARE OF NET PENSION LIABILITY LAST TEN FISCAL YEARS*
See accompanying Note to Required Supplementary Information. (83)
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.

From fiscal year June 30, 2021 to June 30, 2022:

There were no changes in assumptions.
* Fiscal year 2015 was the first year of implementation and therefore only eight 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.
115 April 17, 2023 Item 09

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. (84)
June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 June 30, 2022 June 30, 2017 June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021

0.08291 % 0.08578 % 0.08753 % 0.09021 % 0.09424 %
$ 5,033,469 4,953,802 $ 5,464,373 $ 6,010,435 $ 3,791,431 $ $ 1,225,539 1,289,037 $ $ 1,330,403 $ 1,434,515 $ 1,370,574 384.30 % 410.71 % 410.73 % 418.99 % 276.63 %

73.31 % 72.26 % 75.26 % 71.92 % 82.83 %
116 April 17, 2023 Item 09

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. (85)
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 eight years are shown. (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board.
117 April 17, 2023 Item 09

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. (86)
June 30, 2018 June 30, 2019 June 30, 2020 June 30, 2021 June 30, 2022 $ 399,196 $ 476,504 $ 569,914 $ 613,844 $ 674,037
(399,196) (476,504) (569,914) (613,844) (674,037)
$ - $ - $ - $ - $ -
$ 1,225,539 $ 1,330,403 $ 1,434,515 $ 1,370,574 $ 1,281,066

32.57% 35.82% 39.73% 44.79% 52.62%
6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019
Entry age Entry age Entry age Entry age Entry age
(1) (1) (1) (1) (1)
Market Value Market Value Market Value Market Value Market Value

2.75 % 2.75 % 2.65 % 2.50 % 2.50 %
(2) (2) (2) (2) (2)

7.50% (3) 7.375% (3) 7.275% (3) 7.00% (3) 7.00% (3)
(4) (4) (4) (4) (4)
(5) (5) (5) (5) (5)
118 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

GENERAL FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
See accompanying Note to Required Supplementary Information. (87)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 13,735,000 $ 16,117,230 $ 17,338,731 $ 1,221,501 $ Licenses, Fees, and Permits 1,224,350 1,224,350 1,268,257 43,907 Intergovernmental 546,000 31,000 100,141 69,141
Charges for Services 2,267,650 2,542,650 2,492,438 (50,212) Fines and Forfeitures 849,000 874,000 1,066,270 192,270 Investment Income (Loss) 256,300 271,300 (90,411) (361,711) Contributions - 43,720 43,719 (1)
Other 438,520 261,620 264,346 2,726
Total Revenues 19,316,820 21,365,870 22,483,491 1,117,621

EXPENDITURES
Current:

General Government 6,262,410 6,693,592 6,019,989 673,603 Public Safety 7,280,840 7,427,560 7,157,782 269,778
Public Works 577,080 631,680 318,618 313,062
Capital Outlay - 2,433,425 907,054 1,526,371
Debt Service:

Principal - 100,887 - (100,887)
Interest - - 10,551 (10,551)
Total Expenditures 14,120,330 17,186,257 14,514,881 2,671,376

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 5,196,490 4,179,613 7,968,610 3,788,997

OTHER FINANCING SOURCES (USES)
Transfers In 40,000 40,000 319,218 (279,218)
Transfers Out (3,085,770) (3,033,969) (3,273,801) (239,832) Total Other Financing Sources (Uses) (3,045,770) (2,993,969) (2,954,583) (519,050) NET CHANGE IN FUND BALANCE 2,150,720 1,185,644 5,014,027 3,269,947 Fund Balance - Beginning of Year 10,471,415 10,471,415 10,471,415 - FUND BALANCE - END OF YEAR $ 12,622,135 $ 11,657,059 $ 15,485,442 $ 3,269,947 Budgeted Amounts
119 April 17, 2023 Item 09
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120 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2022
(89)
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 $5,451,438 were made during the year ended June 30, 2022.

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. 121 April 17, 2023 Item 09
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122 April 17, 2023 Item 09

SUPPLEMENTARY INFORMATION
123 April 17, 2023 Item 09
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124 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

GENERAL FUND

COMBINING BALANCE SHEET
JUNE 30, 2022
(93)
Total
General Fund Measure Q General Fund
ASSETS
Cash and Investments $ 11,630,149 $ 5,118,441 $ 16,748,590 Receivables:

Taxes 983,196 673,044 1,656,240
Accrued Interest 23,036 7,326 30,362
Accounts, Net 371,684 - 371,684
Leases 1,314,799 - 1,314,799
Due from Other Agencies 22,047 - 22,047
Due from Other Funds 26,481 - 26,481
Prepaid Items 88 - 88
Total Assets $ 14,371,480 $ 5,798,811 $ 20,170,291

LIABILITIES
Accounts Payable and Accrued Liabilities $ 1,990,007 $ 101,553 $ 2,091,560 Deposits Payable 650,754 - 650,754
Due to Other Agencies 6,236 - 6,236
Unearned Revenue 520,654 - 520,654
Retention Payable - 3,751 3,751
Total Liabilities 3,167,651 105,304 3,272,955

DEFERRED INFLOWS OF RESOURCES
Leases 1,299,261 - 1,299,261
Unavailable Revenues 112,633 - 112,633
Total Deferred Inflows of Resources 1,411,894

FUND BALANCES
Nonspendable 88
Assigned 4,260,395 5,693,507
Unassigned 5,531,452
- 1,411,894
- 88
9,953,902
- 5,531,452
Total Fund Balances 9,791,935 5,693,507 15,485,442
Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 14,371,480 $ 5,798,811 $ 20,170,291 125 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

GENERAL FUND

COMBINING SCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2022
(94)
Total
General Fund Measure Q General Fund

REVENUES
Taxes 13,951,310 $ 3,387,421 $ 17,338,731 $
Licenses, Fees, and Permits 1,268,257 - 1,268,257
Intergovernmental 100,141 - 100,141
Charges for Services 2,492,438 - 2,492,438
Fines and Forfeitures 1,066,270 - 1,066,270
Investment Income (Loss) (988) (89,423) (90,411)
Contributions 43,719 - 43,719
Other 264,346 - 264,346
Total Revenues 19,185,493 3,297,998 22,483,491

EXPENDITURES
Current:

General Government 6,019,989 - 6,019,989
Public Safety 7,157,782 - 7,157,782
Public Works 318,618 - 318,618
Capital Outlay - 907,054 907,054
Debt Service:

Principal 100,887 - 100,887
Interest 10,551 - 10,551
Total Expenditures 13,607,827 907,054 14,514,881

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,390,944 5,577,666 7,968,610

OTHER FINANCING SOURCES (USES)
Transfers In 319,218 - 319,218
Transfers Out (3,273,801) - (3,273,801)
Total Other Financing Sources (Uses) (2,954,583) - (2,954,583) NET CHANGE IN FUND BALANCES 2,390,944 2,623,083 5,014,027 Fund Balances - Beginning of Year 7,168,852 3,302,563 10,471,415 FUND BALANCES - END OF YEAR $ 5,693,507 9,791,935 $ 15,485,442 $ 126 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
(95)

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.
127 April 17, 2023 Item 09
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128 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET
JUNE 30, 2022
(96)
Supplemental Regional
Law Communications
Gasoline Tax Open Space Enforcement System
ASSETS
Cash and Investments 15,178 $ $ 460,714 $ - $ 23,139
Receivables:

Accrued Interest - - 225 -
Accounts, Net 17,905 717 - -
Prepaids - 88 - -
Total Assets $ 33,083 $ 461,519 $ 225 $ 23,139

LIABILITIES
Accounts Payable and Accrued Liabilities 33,083 $ $ 48,895 $ - $ - Deposits Payable - 54,149 - -
Due to Other Funds - - 225 12,276
Total Liabilities 33,083 103,044 225 12,276

FUND BALANCES (DEFICIT)
Nonspendable - 88 - -
Restricted for:

Public Safety - - - 10,863
Low-Income Housing - - - -
Public Works - - - -
Street Projects - - - -
Committed to:

Parks and Recreation - 358,387 - -
Unassigned - - - -
Total Fund Balances (Deficits) - 358,475 - 10,863
Total Liabilities, Deferred Inflow of
Resources and Fund Balances $ 33,083 $ 461,519 $ 225 $ 23,139 Special Revenue Funds
129 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NONMAJOR GOVERNMENTAL FUNDS

COMBINING BALANCE SHEET (CONTINUED)
JUNE 30, 2022
(97)
Transnet II
Capital
Grants Housing AB 939 RMRA Improvements RTCIP Total
$ 95,963 $ 453,943 $ 268,989 $ - $ 2,726 $ 7,832 $ 1,328,484 137 220 384 210 30 11 1,217
39,106 - - 13,770 - - 71,498
- - - - - - 88
$ 135,206 $ 454,163 $ 269,373 $ 13,980 $ 2,756 $ 7,843 $ 1,401,287 $ 537 $ 3,500 $ 6,964 $ - $ - $ - $ 92,979
- - - - - - 54,149
- - - 13,980 - - 26,481
537 3,500 6,964 13,980 - 173,609 -
- - - - - - 88
134,669 - - - - 145,532 -
- 450,663 - - - 450,663 -
- 262,409 - - - 262,409 -
- - - - 2,756 7,843 10,599
- - - - - 358,387 -
- - - - - - -
134,669 450,663 262,409 - 2,756 7,843 1,227,678
$ 135,206 $ 454,163 $ 269,373 $ 13,980 $ 2,756 $ 7,843 $ 1,401,287 Special Revenue Funds Capital Projects Funds
130 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES
YEAR ENDED JUNE 30, 2022
(98)
Supplemental Regional
Law Communications
Gasoline Tax Open Space Enforcement System

REVENUES
Taxes - $ $ 27,412 $ - $ -
Licenses, Fees, and Permits - 358,561 - -
Intergovernmental 104,285 39,227 100,000 43,921
Investment Income (Loss) - 43 (3,359) 140
Contributions - 40,000 - -
Other - 51,226 61,285 -
Total Revenues 104,285 516,469 157,926 44,061

EXPENDITURES
Current:

General Government - - - -
Public Safety - - - 36,347
Public Works 586,208 - - -
Parks and Recreation - 1,016,920 - -
Capital Outlay - 137,311 - -
Debt Service:

Principal - - - 18,768
Interest - - - 6,492
Total Expenditures 586,208 1,154,231 - 61,607

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (481,923) (637,762) 157,926 (17,546)

OTHER FINANCING SOURCES (USES)
Transfers In 481,923 848,953 - 12,974
Transfers Out - (157,926) - -
Total Other Financing Sources (Uses) 481,923 848,953 (157,926) 12,974 NET CHANGE IN FUND BALANCES - 211,191 - (4,572)
Fund Balances - Beginning of Year - 147,284 - 15,435
FUND BALANCES - END OF YEAR $ - $ 358,475 $ - $ 10,863
Special Revenue Funds
131 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

NONMAJOR GOVERNMENTAL FUNDS

COMBINING STATEMENT OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES (CONTINUED)
YEAR ENDED JUNE 30, 2022
(99)
Transnet II
Capital
Grants Housing AB 939 RMRA Improvements RTCIP Total
$ - $ - $ - $ - $ - $ - $ 27,412
- - 63,291 - - 2,635 424,487
53,888 - 20,419 84,192 152,680 598,612 -
(1,958) (3,489) (5,164) (2,563) (334) (157) (16,841)
- - - - - - 40,000
- 115,000 - - - 227,511 -
51,930 (3,489) 193,546 81,629 152,346 2,478 1,301,181
- 95,599 150,398 - - 245,997 -
12,677 - - - - - 49,024
- - - - - 586,208 -
- - - - - 1,016,920 -
- - - - 18,000 5,000 160,311
25,241 - - - 66,250 110,259 -
- - - - 68,431 - 74,923
37,918 95,599 150,398 - 152,681 5,000 2,243,642
14,012 (99,088) 43,148 81,629 (335) (2,522) (942,461)
300,000 - - - 1,643,850 -
- - (161,292) - - (319,218) -
- 300,000 - (161,292) - 1,324,632 -
14,012 200,912 43,148 (79,663) (335) (2,522) 382,171
120,657 249,751 219,261 79,663 3,091 10,365 845,507
$ 134,669 $ 450,663 $ 262,409 $ - $ 2,756 $ 7,843 $ 1,227,678 Special Revenue Funds Capital Projects Funds
132 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

GASOLINE TAX SPECIAL REVENUE FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
(100)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 119,380 $ 119,380 $ $ 104,285 $ (15,095) Total Revenues 119,380 119,380 104,285 (15,095)

EXPENDITURES
Current:

Public Works 579,030 593,730 586,208 7,522
Total Expenditures 579,030 593,730 586,208 7,522

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (459,650) (474,350) (481,923) (7,573)

OTHER FINANCING SOURCES
Transfers In 459,650 474,350 481,923 7,573
Total Other Financing Sources 459,650 474,350 481,923 7,573

NET CHANGE IN FUND BALANCE - - - -
Fund Balance - Beginning of Year - - - -
FUND BALANCE - END OF YEAR $ - $ - $ - $ -
Budgeted Amounts
133 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

OPEN SPACE SPECIAL REVENUE FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
(101)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Taxes 6,000 $ $ 6,000 $ 27,412 $ 21,412
Licenses, Fees, and Permits 260,000 270,000 358,561 88,561 Intergovernmental 181,500 216,500 39,227 (177,273)
Investment Income (Loss) 500 500 43 (457)
Contributions - - 40,000 40,000
Other 42,360 42,360 51,226 8,866
Total Revenues 490,360 535,360 516,469 (18,891)

EXPENDITURES
Current:

Parks and Recreation 1,022,340 1,052,980 1,016,920 36,060 Capital Outlay 530,000 556,728 137,311 419,417
Total Expenditures 1,552,340 1,609,708 1,154,231 455,477

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,061,980) (1,074,348) (637,762) 436,586

OTHER FINANCING SOURCES
Transfers In 1,061,980 1,047,720 848,953 (198,767)
Total Other Financing Sources 1,061,980 1,047,720 848,953 (198,767) NET CHANGE IN FUND BALANCE (26,628) - 211,191 237,819
Fund Balance - Beginning of Year 147,284 147,284 147,284 - FUND BALANCE - END OF YEAR $ 147,284 $ 120,656 $ 358,475 $ 237,819 Budgeted Amounts
134 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

SUPPLEMENTAL LAW ENFORCEMENT SPECIAL REVENUE FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
(102)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 100,000 $ 100,000 $ $ 100,000 $ -
Investment Income (Loss) - - (3,359) (3,359)
Other 61,280 - 61,285 5
Total Revenues 100,000 161,280 157,926 (3,354)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 100,000 161,280 157,926 (3,354)

OTHER FINANCING USES
Transfers Out (100,000) (161,280) (157,926) 3,354
Total Other Financing Uses (100,000) (161,280) (157,926) 3,354

NET CHANGE IN FUND BALANCE - - - -
Fund Balance - Beginning of Year - - - -
FUND BALANCE (DEFICIT) - END OF YEAR $ - $ - $ - $ -
Budgeted Amounts
135 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

REGIONAL COMMUNICATIONS SYSTEM SPECIAL REVENUE FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
(103)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 48,000 $ $ 48,000 $ 43,921 $ (4,079)
Investment Income (Loss) - - 140 140
Total Revenues 48,000 48,000 44,061 (3,939)

EXPENDITURES
Current:

Public Safety 34,500 34,500 36,347 (1,847)
Debt Service:

Principal 22,010 22,010 18,768 3,242
Interest 3,250 3,250 6,492 (3,242)
Total Expenditures 59,760 59,760 61,607 (1,847)

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (11,760) (11,760) (17,546) (5,786)

OTHER FINANCING SOURCES
Issuance of Debt - - - -
Transfers In (11,760) 3,375 12,974 9,599
Total Other Financing Sources (11,760) 3,375 12,974 9,599 NET CHANGE IN FUND BALANCE (23,520) (8,385) (4,572) 3,813 Fund Balance - Beginning of Year 15,435 15,435 15,435 - FUND BALANCE - END OF YEAR $ (8,085) $ 7,050 $ 10,863 $ 3,813 Budgeted Amounts
136 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

GRANTS SPECIAL REVENUE FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
(104)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 51,470 $ $ 51,470 $ 53,888 $ 2,418
Investment Income (Loss) - - (1,958) (1,958)
Total Revenues 51,470 51,470 51,930 460

EXPENDITURES
Current:

Public Safety 28,729 28,729 12,677 16,052
Debt Service:

Principal 25,241 25,241 25,241 -
Total Expenditures 53,970 53,970 37,918 16,052
NET CHANGE IN FUND BALANCE (2,500) (2,500) 14,012 16,512 Fund Balance - Beginning of Year 120,657 120,657 120,657 - FUND BALANCE - END OF YEAR $ 118,157 $ 118,157 $ 134,669 $ 16,512 Budgeted Amounts
137 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

HOUSING SPECIAL REVENUE FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
(105)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Investment Income (Loss) 3,000 $ $ 3,000 $ (3,489) $ (6,489) Total Revenues 3,000 3,000 (3,489) (6,489)

EXPENDITURES
Current:

General Government 99,550 99,550 95,599 3,951
Total Expenditures 99,550 99,550 95,599 3,951

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (96,550) (96,550) (99,088) (2,538)

OTHER FINANCING SOURCES (USES)
Transfers In 300,000 - 300,000 -
Total Other Financing Sources (Uses) 300,000 - 300,000 - NET CHANGE IN FUND BALANCE (96,550) 203,450 200,912 (2,538) Fund Balance - Beginning of Year 249,751 249,751 249,751 - FUND BALANCE - END OF YEAR $ 153,201 $ 453,201 $ 450,663 $ (2,538) Budgeted Amounts
138 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA
AB 939 SPECIAL REVENUE FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
(106)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Licenses, Fees, and Permits 64,000 $ $ 64,000 $ 63,291 $ (709) Intergovernmental 20,400 - 20,419
Investment Income (Loss) 1,000 1,000 (5,164) (6,164)
Other 115,000 - 115,000
Total Revenues 65,000 200,400 193,546 (6,854)

EXPENDITURES
Current:

General Government 172,120 172,120 150,398 21,722
Total Expenditures 172,120 172,120 150,398 21,722
NET CHANGE IN FUND BALANCE (107,120) 28,280 43,148 14,868 Fund Balance - Beginning of Year 219,261 219,261 219,261 - FUND BALANCE - END OF YEAR $ 112,141 $ 247,541 $ 262,409 $ 14,868 Budgeted Amounts
139 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

ROAD MAINTENANCE AND REHABILITATION ACCOUNT (RMRA) SPECIAL REVENUE FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
(107)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 86,990 $ $ 86,990 $ 84,192 $ (2,798)
Investment Income (Loss) - - (2,563) (2,563)
Total revenues 86,990 86,990 81,629 (5,361)

OTHER FINANCING USES
Transfers Out (86,990) (166,653) (161,292) 5,361
Total Other Financing Uses (86,990) (166,653) (161,292) 5,361 NET CHANGE IN FUND BALANCE (79,663) - (79,663) -
Fund Balance - Beginning of Year 79,663 79,663 79,663 - FUND BALANCE - END OF YEAR $ 79,663 $ - $ - $ -
Budgeted Amounts
140 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

TRANSNET II CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
(108)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 205,000 $ 223,000 $ $ 152,680 $ (70,320) Investment Income (Loss) - - (334) (334)
Total Revenues 205,000 223,000 152,346 (70,654)

EXPENDITURES
Capital Outlay - - 18,000 (18,000)
Debt Service:

Principal 66,250 66,250 66,250 -
Interest 138,750 138,750 68,431 70,319
Total Expenditures 205,000 205,000 152,681 52,319
NET CHANGE IN FUND BALANCE 18,000 - (335) (18,335)
Fund Balance - Beginning of Year 3,091 3,091 3,091 -
FUND BALANCE - END OF YEAR $ 3,091 $ 21,091 $ 2,756 $ (18,335) Budgeted Amounts
141 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA
CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND – MAJOR FUND

BUDGETARY COMPARISON SCHEDULE
YEAR ENDED JUNE 30, 2022
(109)
Variance with
Final Budget -
Actual Positive
Original Final Amounts (Negative)

REVENUES
Intergovernmental 371,830 $ 744,790 $ $ 211,768 $ (533,022) Investment Income (Loss) - - (32,712) (32,712)
Total Revenues 371,830 744,790 179,056 (565,734)

EXPENDITURES
General Government 44,150 44,150 44,148 2
Capital Outlay 810,000 1,529,581 763,030 766,551
Debt Service:

Principal 391,060 391,061 391,061 -
Interest 470,460 470,460 470,453 7
Total Expenditures 1,715,670 2,435,252 1,668,692 766,560

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,343,840) (1,690,462) (1,489,636) 200,826

OTHER FINANCING SOURCES
Transfers In 1,343,840 1,382,092 1,542,080 159,988
Total Other Financing Sources 1,343,840 1,382,092 1,542,080 159,988 NET CHANGE IN FUND BALANCE (308,370) - 52,444 360,814
Fund Balance - Beginning of Year 308,370 308,370 308,370 - FUND BALANCE - END OF YEAR $ 308,370 $ 360,814 - $ $ 360,814 Budgeted Amounts
142 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

CUSTODIAL FUNDS
JUNE 30, 2022
(110)
Custodial funds are used to account for assets held by the City 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
 Sunset Undergrounding Assessment District 2007-02
143 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

CUSTODIAL FUNDS

COMBINING STATEMENT OF FIDUCIARY NET POSITION
JUNE 30, 2022
(111)
Stratford and
Luneta Seaw all Ocean View / Sunset
Undergrounding Refinance Pines Undergrounding
Assessment Assessment Assessment Assessment
District 1989-01 District 1999-01 District 2005-01 District 2007-02 Total ASSETS
Accounts Receivable 148 $ 35 $ 86 $ 15 $ 284 $
Restricted Assets:

Cash and Investments 103,962 24,237 60,138 10,215 198,552 Total Assets 104,110 24,272 60,224 10,230 198,836

NET POSITION
Restricted for Bond Holders 104,110 24,272 60,224 10,230 198,836 Total Net Position 104,110 $ $ 24,272 $ 60,224 $ 10,230 $ 198,836 144 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

CUSTODIAL FUNDS

COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION YEAR ENDED JUNE 30, 2022
(112)
Stratford and
Luneta Seaw all Ocean View / Sunset
Undergrounding Refinance Pines Undergrounding
Assessment Assessment Assessment Assessment
District 1989-01 District 1999-01 District 2005-01 District 2007-02 Total

ADDITIONS
Investment Income (Loss) $ (2,036) $ (473) $ (1,335) $ (197) $ (4,041) Special Assessments or
Special Taxes Collected
from Property Ow ners - 52,970 - - 52,970
Total Additions (2,036) (473) 51,635 (197) 48,929

DEDUCTIONS
Payment for Special
Tax Debt - 58,873 - - 58,873
Total Deductions - 58,873 - - 58,873
CHANGE IN NET POSITION (2,036) (473) (7,238) (197) (9,944) Total Net Position -
Beginning of Year 106,146 24,745 67,462 10,427 208,780

TOTAL NET POSITION -
END OF YEAR $ 104,110 $ 24,272 $ 60,224 $ 10,230 $ 198,836 145 April 17, 2023 Item 09
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146 April 17, 2023 Item 09
(114)

CITY OF DEL MAR, CALIFORNIA

STATISTICAL SECTION
FISCAL YEAR 2021-2022
This part of the City of Del Mar’s (the City) Annual Comprehensive Financial Report (ACFR) 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 115
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 124
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 135
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 141
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 145
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. 147 April 17, 2023 Item 09
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148 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA
NET POSITION BY COMPONENT(1)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(115)
2012-2013 (2) 2013-2014 (3) 2014-2015 2015-2016
Governmental Activities:

Net Investment in Capital Assets 55,606,641 $ 59,605,566 $ 59,266,263 $ 63,917,170 $ Restricted 965,813 980,148 795,930 706,189
Unrestricted 4,743,258 217,804 3,680,641 3,657,031
Total Governmental Activities $ 61,315,712 $ 60,803,518 $ 63,742,834 $ 68,280,390 Business-Type Activities:

Net Investment in Capital Assets $ 20,592,138 $ 18,867,190 $ 19,468,010 $ 21,145,247 Restricted - - - -
Unrestricted 2,697,664 2,730,948 2,532,915 1,565,516
Total Business-Type Activities $ 23,289,802 $ 21,598,138 $ 22,000,925 $ 22,710,763 Primary Government:

Net Investment in Capital Assets $ 76,198,779 $ 78,472,756 $ 78,734,273 $ 85,062,417 Restricted 965,813 980,148 795,930 706,189
Unrestricted 7,440,922 2,948,752 6,213,556 5,222,547
Total Primary Government $ 84,605,514 $ 82,401,656 $ 85,743,759 $ 90,991,153 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
149 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA
NET POSITION BY COMPONENT(1) (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(116)
2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 $ 70,478,246 70,677,865 $ 71,168,471 $ 73,838,956 $ 72,058,048 $ 71,521,446 $ 779,035 755,945 690,821 679,422 934,485 1,123,980
(1,945,483) 2,549,881 1,320,489 (1,830,925) 1,674,375 6,639,579 $ 69,511,417 $ 73,784,072 $ 73,179,781 $ 72,687,453 $ 74,666,908 $ 79,285,005 $ 21,782,050 $ 21,388,165 $ 20,887,789 $ 20,418,606 $ 20,447,077 $ 20,926,230 - - 563,791 - - -
1,425,671 1,219,695 1,850,025 1,250,437 2,453,280 2,795,724 $ 23,207,721 $ 22,607,860 $ 22,737,814 $ 22,232,834 $ 22,900,357 $ 23,721,954 $ 92,459,915 $ 91,866,411 $ 92,056,260 $ 94,257,562 $ 92,505,125 $ 92,447,676 779,035 755,945 690,821 1,243,213 934,485 1,123,980
(519,812) 3,769,576 3,170,514 (1,011,528) (1,011,528) 9,435,303 $ 92,719,138 $ 96,391,932 $ 95,917,595 $ 94,489,247 $ 92,428,082 $ 103,006,959 Fiscal Year
150 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

CHANGES IN NET POSITION

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(117)
2012-2013 (2) 2013-2014 2014-2015 2015-2016

EXPENSES
Governmental Activities:

General Government 4,577,084 $ $ 4,328,963 $ 4,748,943 $ 5,362,200 Public Safety 6,463,932 5,472,799 5,705,795 5,716,667
Public Works 923,784 943,013 1,649,191 1,410,511
Parks and Recreation 776,639 839,063 835,545 936,586
Interest on Long-Term Debt 15,813 8,438 158,679 155,143 Total Governmental Activities Expenses 12,757,252 11,592,276 13,098,153 13,581,107 Business-Type Activities:

Water 2,759,682 2,964,821 3,165,994 3,072,195
Wastewater 2,786,105 2,759,107 2,965,384 2,500,851
Clean Water 425,569 411,143 439,752 464,373
Total Business-Type Activities Expenses 5,971,356 6,135,071 6,571,130 6,037,419 Total Primary Government Expenses $ 18,728,608 $ 17,727,347 $ 19,669,283 $ 19,618,526

P ROGRAM REVENUES
Governmental Activities:

Charges for Services:

General Government 1,112,124 $ 1,117,178 $ 1,388,029 $ $ 1,646,441 Public Safety 1,382,429 1,312,948 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 2,477,171 2,711,877 2,861,908 2,822,138
Wastewater 2,874,751 2,998,521 3,048,006 3,675,632
Clean Water 382,709 404,313 395,404 408,037
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 (EXP ENSES) (1)
Governmental Activities $ (1,039,380) $ (1,109,185) $ (5,760,312) $ (8,830,261) Business-Type Activities (231,725) (20,360) (260,812) 873,388 Total Net Revenues (Expenses) $ (1,271,105) $ (1,129,545) $ (6,021,124) $ (7,956,873)

GENERAL REVENUE AND OTHER CHANGES

IN NET P OSITION
Governmental Activities:

Taxes:

Property Taxes $ 4,647,145 $ 4,971,265 $ 5,329,825 $ 5,291,352 Sales and Use Tax 1,628,442 1,674,709 1,700,688 1,998,279 Transient Occupancy Tax 1,805,475 1,939,699 2,101,634 2,444,275 Franchise Tax 421,518 384,220 373,589 367,471
Business License Tax 210,243 191,786 191,734 208,898
Intergovernmental - Unrestricted Other 117,062 205,319 209,226 278,081 Investment Income 83,424 161,140 190,457 239,734
Sale of Capital Assets 18,811 - - -
Other 424,070 412,954 228,085 493,914
Transfers (16,785) (108,563) (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 25,242 26,060 - -
Transfers 16,785 108,563 19,615 35,381
Total Business-Type Activities 55,286 159,018 25,206 63,110 Total Primary Government $ 9,394,691 $ 9,991,547 $ 10,330,829 $ 11,349,733

CHANGE IN NET P OSITION
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
151 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

CHANGES IN NET POSITION (CONTINUED)

LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
(118)
2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 $ 6,676,027 $ 6,360,890 $ 8,461,528 $ 9,079,633 $ 7,048,840 $ 7,424,735 6,676,661 6,861,913 7,104,779 7,955,624 7,699,253 7,626,541 1,892,772 1,889,260 5,895,910 2,656,048 2,514,209 2,644,194 951,289 894,067 776,548 1,162,397 773,562 1,059,781
719,263 668,368 653,705 630,051 485,322 550,712
16,916,012 16,674,498 22,892,470 21,483,753 18,521,186 19,305,963 3,286,281 3,323,365 3,375,306 3,666,650 3,779,243 4,043,288 2,530,107 2,996,746 3,217,465 4,029,879 3,638,587 3,337,828 532,792 498,076 559,551 599,643 515,052 636,499
6,349,180 6,818,187 7,152,322 8,296,172 7,932,882 8,017,615 $ 23,265,192 $ 23,492,685 $ 30,044,792 $ 29,779,925 $ 26,454,068 $ 27,323,578 $ 1,735,309 1,547,069 $ 1,894,634 $ 1,789,928 $ 1,913,924 $ 2,158,279 $ 1,382,501 1,405,751 1,778,983 1,868,370 1,870,581 2,579,997 - - 2,404 2,483 - 2,636
383,027 378,446 418,447 413,491 225,363 447,250
231,257 522,338 481,814 329,537 467,683 426,084
1,802,911 885,773 585,058 915,994 955,619 484,867
5,346,765 4,927,617 5,161,340 5,319,803 5,433,170 6,099,113 2,745,721 3,085,668 3,440,656 3,348,654 3,675,298 4,363,056 3,486,362 3,283,228 3,096,774 3,261,067 3,362,819 3,884,184 420,388 476,980 546,730 548,327 562,349 577,050
5,000 5,000 5,000 - - 57,316
6,657,471 6,850,876 7,089,160 7,158,048 7,600,466 8,881,606 $ 12,004,236 $ 11,778,493 $ 12,250,500 $ 12,477,851 $ 13,033,636 $ 14,980,719 $ (11,569,247) $ (11,746,881) $ (17,731,130) $ (16,163,950) $ (13,088,016) $ (13,206,850) 308,291 32,689 (63,162) (1,138,124) (332,416) 863,991
$ (11,260,956) $ (11,714,192) $ (17,794,292) $ (17,302,074) $ (13,420,432) $ (12,342,859) $ 5,640,285 $ 6,752,952 $ 6,491,063 $ 6,679,052 $ 6,993,953 $ 7,771,396 2,332,522 2,227,309 4,854,514 5,043,747 3,752,696 5,456,137 2,617,866 2,697,297 3,001,300 2,982,510 2,300,504 3,419,866 369,524 459,271 387,466 424,930 390,482 404,226
226,508 240,103 241,008 243,198 235,557 282,187
182,140 133,399 212,514 162,280 120,701 151,499
298,974 245,548 386,787 519,309 387,953 (139,964)
108,023 - - - - -
1,050,341 437,304 211,161 913,350 1,023,262 549,295
(54,285) 26,239 - - (77,893) (87,871)
12,771,898 13,219,422 15,785,813 16,968,376 15,127,215 17,806,771 35,501 21,501 34,566 124,228 112,833 (112,089)
- - - - - -
54,285 (26,239) - - 77,893 87,871
89,786 (4,738) 34,566 124,228 190,726 (24,218)
$ 12,861,684 $ 13,214,684 $ 15,820,379 $ 17,092,604 $ 15,317,941 $ 17,782,553 $ 4,537,556 $ 1,472,541 $ (1,945,317) $ 804,426 $ 2,039,199 $ 4,599,921 709,838 27,951 (28,596) (1,013,896) (141,690) 839,773
$ 5,247,394 $ 1,500,492 $ (1,973,913) $ (209,470) $ 1,897,509 $ 5,439,694 Fiscal Year
152 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(119)
2012-2013 2013-2014 2014-2015 2015-2016

GENERAL FUND
Nonspendable - $ $ - $ - $ -
Assigned 1,475,704 1,471,791 1,471,791 1,530,159
Unassigned 1,446,003 2,345,865 3,806,755 4,192,011
Total General Fund $ 2,921,707 $ 3,817,656 $ 5,278,546 $ 5,722,170

OTHER GOVERNMENTAL FUNDS
Nonspendable $ - $ - $ - $ -
Restricted 965,812 980,148 795,930 706,189
Committed 167,503 207,819 299,415 302,160
Assigned 1,535,486 2,729,399 4,451,680 3,737,345
Total Other Governmental Funds 2,668,801 $ $ 3,917,366 $ 5,547,025 $ 4,745,694 Fiscal Year
153 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(120)
2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 $ 23,338 $ 6,579 $ 2,877 $ 3,341 $ 50,415 $ 88
2,233,502 5,100,305 2,669,278 3,747,450 2,825,035 9,953,902 5,647,975 3,633,422 5,558,534 2,507,169 7,595,965 5,531,452 $ 7,904,815 $ 8,740,306 $ 8,230,689 $ 6,257,960 $ 15,485,442 10,471,415 $ $ - $ - $ - $ - $ 77 $ 88
779,035 755,945 690,821 679,422 698,223 869,203
299,688 193,395 395,516 268,295 147,207 358,387
(3,571,263) 805,635 320,493 278,065 308,370 360,814
$ (2,492,540) $ 1,754,975 $ 1,406,830 $ 1,225,782 $ 1,153,877 $ 1,588,492 Fiscal Year
154 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(121)
2012-2013 2013-2014 2014-2015 2015-2016

REVENUES
Taxes 9,284,503 $ 9,865,474 $ 10,469,129 $ 11,291,573 $ Licenses and Permits 1,036,973 1,320,317 1,432,809 1,313,261 Intergovernmental 7,638,143 4,165,489 1,167,061 2,049,910 Charges for Services 1,190,559 1,296,138 1,447,608 1,471,767 Fines and Forfeitures 669,665 586,367 633,259 579,364
Use of Money and Property 154,539 190,457 239,733 298,973 Contributions 36,921 17,368 26,100 13,612
Other Revenues 411,397 221,469 657,152 1,046,464
Total Revenues 20,422,700 17,663,079 16,072,851 18,064,924

EXPENDITURES
General Government 5,903,824 4,326,650 4,465,857 5,055,390 Public Safety 6,457,063 5,442,607 5,707,066 5,769,859
Public Works 767,200 486,619 565,436 589,870
Parks and Recreation 775,814 809,797 796,933 907,484
Capital Outlays 7,664,337 4,960,745 2,652,017 6,620,181 Debt Service:

Principal 155,000 165,000 886,500 50,000
Interest and Fiscal Charges 18,655 11,532 158,718 155,143 Cost of Issuance - - - -
Total Expenditures 21,741,893 16,202,950 15,232,527 19,147,927

EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (1,319,193) 1,460,129 840,324 (1,083,003)

OTHER FINANCING SOURCES (USES)
Proceeds from Capital Lease - - - 157,431
Issuance of Debt - 704,000 2,285,606 622,150
Sale of Capital Assets - - - -
Transfers In 1,779,347 2,180,793 2,739,389 3,642,313
Transfers Out (1,587,910) (2,200,408) (2,774,770) (3,696,598) Total Other Financing Sources (Uses) 191,437 684,385 2,250,225 725,296 NET CHANGE IN FUND BALANCES $ (1,127,756) $ 2,144,514 $ 3,090,549 $ (357,707) Debt Service as a Percentage
of Noncapital Expenditures 1.23 % (2) 1.57 % 8.31 % 1.64 % 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
155 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS (CONTINUED)

LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
(122)
2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 $ 15,119,862 12,483,838 $ 15,561,911 $ 13,865,011 $ 13,491,345 $ 17,366,143 $ 1,473,672 1,560,470 1,424,462 1,175,755 1,430,060 1,692,744 640,435 940,761 1,144,117 1,247,627 636,338 910,521
1,537,125 1,760,952 1,969,158 2,102,617 2,563,903 2,492,438 561,080 716,505 740,862 797,887 1,049,002 1,066,270
245,548 496,853 519,309 387,953 229,973 (139,964)
77,464 161,500 25,730 32,680 214,996 83,719
1,101,638 190,250 902,630 1,028,748 978,681 491,857
18,120,800 20,947,153 22,288,179 20,638,278 20,594,298 23,963,728 6,212,785 5,921,425 7,459,736 7,511,186 6,250,367 6,310,134 6,411,309 6,405,468 6,823,281 7,309,028 7,124,556 7,206,806 646,739 613,939 753,994 860,139 764,118 904,826
910,515 834,530 916,556 945,702 773,085 1,016,920
11,952,324 12,347,347 7,643,140 4,953,541 585,334 1,830,395 88,352 481,658 478,878 499,788 482,853 602,207
506,960 672,959 657,891 634,778 490,611 555,927
161,610 - - - - -
26,890,594 27,277,326 24,733,476 22,714,162 16,470,924 18,427,215 (8,769,794) (6,330,173) (2,445,297) (2,075,884) 4,123,374 5,536,513 - - - - - -
3,687,966 11,413,179 1,587,535 - - -
- - - - - -
2,156,104 6,491,721 3,452,909 3,390,584 2,127,964 3,505,148 (2,129,865) (6,491,721) (3,452,909) (3,468,477) (2,109,788) (3,593,019) 3,714,205 11,413,179 1,587,535 (77,893) 18,176 (87,871) $ (5,055,589) $ 5,083,006 $ (857,762) $ (2,153,777) $ 4,141,550 $ 5,448,642

3.99 % 7.73 % 6.65 % 6.39 % 6.13 % 6.98 %
Fiscal Year
156 April 17, 2023 Item 09
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157 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE

LAST TEN FISCAL YEARS
(124)
Transient Business
Fiscal Property Sales & Use District Occupancy Franchise License Year Taxes (1) Tax (2) Tax (3) Tax Tax Tax Total
2021-2022 7,771,396 $ $ 2,068,716 $ 3,387,421 $ 3,419,866 $ 404,226 $ 282,524 $ 17,334,150 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 Change from
Base Year 2013 56.33 % 23.53 % 100.00 % 76.31 % 5.21 % 47.31 % 89.20 % Notes:
(1) Includes Property Tax In-lieu of Vehicle License Fee (VLF) as part of the State's VLF for Property Tax Sw ap Adjustment. (3) Measure Q for 1% District tax w as 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.
158 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION(1)

LAST TEN FISCAL YEARS
(125)
Parks
Fiscal General Public Public and Capital Debt
Year Government Safety Works Recreation Outlay Service (2) Total 2021-2022 6,310,134 $ 7,206,806 $ 904,826 $ 1,016,920 $ 1,830,395 $ 1,158,134 $ 18,427,215 $ 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 Notes:
(1) These amounts include all governmental fund types and exclude other financing sources (uses). (2) These amounts include lease and bond payments tow ard debt service. 159 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

ASSESSED VALUE OF PROPERTY BY USER CODE

LAST TEN FISCAL YEARS
(126)
Category 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 Residential $ 2,580,568,065 $ 2,691,922,002 $ 2,873,316,023 $ 3,084,334,222 $ 3,253,273,422 Commercial 258,451,071 260,013,522 265,411,786 271,336,627 278,157,135 Industrial 2,956,947 2,970,364 3,014,195 3,048,474 3,199,522 Institutional 2,823,200 2,836,017 2,892,680 2,936,793 2,995,528 Recreational 9,364,269 9,689,662 11,214,206 11,767,616 13,338,452 Miscellaneous - - - - -
Total $ 2,854,163,552 $ 2,967,431,567 $ 3,155,848,890 $ 3,373,423,732 $ 3,550,964,059 Note:
(1) In 1978 the voters of the State of California passed Proposition 13 w hich 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 tw o percent. With few exemptions, the property is reassessed as a result of new construction or at the time it is sold to a new ow ner. 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 show n above represents the only data currently available w ith 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
160 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

ASSESSED VALUE OF PROPERTY BY USER CODE (CONTINUED)

LAST TEN FISCAL YEARS
(127)
2017-2018 2018-2019 2019-2020 2020-2021 2021-2022
$ 3,433,325,030 $ 3,643,775,875 $ 3,875,115,458 $ 4,024,078,136 $ 4,361,607,012 283,644,529 309,755,624 322,793,000 306,435,872 337,705,751 2,569,569 2,620,955 3,162,334 3,195,089 3,346,988
3,055,438 3,116,546 3,178,876 3,211,808 3,926,043
13,817,906 15,850,559 12,487,932 2,092,944 2,075,659
- - - - 26,600
$ 3,736,412,472 $ 3,975,119,559 $ 4,216,737,600 $ 4,339,013,849 $ 4,708,688,053 Fiscal Year
161 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA
ESTIMATED VALUE OF TAXABLE PROPERTY(1)

LAST TEN FISCAL YEARS
(128)
Fiscal Assessed Number Assessed Number Assessed Number
Year Value of Parcels Value of Parcels Value of Parcels 2021-2022 4,361,607,012 $ 4,203 $ 337,705,751 102 3,346,988 $ 7 2020-2021 4,024,078,136 4,203 306,435,872 3,195,089 103 7 2019-2020 3,875,115,458 4,202 322,793,000 3,162,334 101 7 2018-2019 3,643,775,875 4,203 309,755,624 2,620,955 101 7 2017-2018 3,433,325,030 4,202 283,644,529 2,569,569 102 7 2016-2017 3,253,273,422 4,200 278,157,135 3,199,522 101 8 2015-2016 3,084,334,222 4,199 271,336,627 3,048,474 102 8 2014-2015 2,873,316,023 4,198 265,411,786 3,014,195 102 9 2013-2014 2,691,922,002 4,199 260,013,522 2,970,364 102 9 2012-2013 2,580,568,065 4,199 258,451,071 2,956,947 102 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
162 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA
ESTIMATED VALUE OF TAXABLE PROPERTY(1) (CONTINUED)

LAST TEN FISCAL YEARS
(129)
Total
Direct
Assessed Number Assessed Number Assessed Number Assessed Number Tax Value of Parcels Value of Parcels Value of Parcels Value of Parcels Rate (%) (2) $ 1 3,926,043 2,075,659 $ 306 26,600 4,708,688,053 1 $ 4,620 0.14775 3,211,808 1 2,092,944 337 - 4,339,013,849 - 4,651 0.14775 3,178,876 1 12,487,932 340 - 4,216,737,600 - 4,651 0.14775 3,116,546 1 15,850,559 342 - 3,975,119,559 - 4,654 0.14775 3,055,438 1 13,817,906 342 - 3,736,412,472 - 4,654 0.14775 2,995,528 1 13,338,452 346 - 3,550,964,059 - 4,656 0.14775 2,936,793 1 11,767,616 350 - 3,373,423,732 - 4,660 0.14775 2,892,680 1 11,214,206 337 - 3,155,848,890 - 4,647 0.14775 2,836,017 1 9,689,662 234 - 2,967,431,567 - 4,545 0.14775 2,823,200 1 9,364,269 231 - 2,854,163,552 - 4,542 0.14775 Institutional Recreational Other Total
163 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

CONSTRUCTION PERMITS

LAST TEN FISCAL YEARS
(130)
Fiscal Number of Number of Number of Number of
Year Permits Valuation Permits Valuation Permits Valuation Permits Valuation 2021-2022 177 21,181,429 $ 19 912,000 $ - $ - 196 22,093,429 $ 2020-2021 173 19,649,957 12 3,761,147 27 48,209 23,459,313 212 2019-2020 129 16,153,000 17 1,931,000 31 80,666 18,164,666 177 2018-2019 181 10,456,000 300,000 9 62 114,653 252 10,870,653 2017-2018 105 15,674,999 278,000 5 41 124,514 151 27,588,507 2016-2017 90 13,885,482 13,700,850 24 2 2,175 27,588,507 116 2015-2016 75 10,798,630 17 572,000 29 568,000 121 11,938,630 2014-2015 101 12,075,924 338,000 3 17 692,481 121 13,106,405 2013-2014 73 10,921,237 951,835 12 29 128,831 114 12,001,903 2012-2013 64 7,771,721 11 112,926 34 771,850 109 8,656,497 Construction (1)
Residential Commercial Total
164 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA
PROPERTY TAX RATES(1) – ALL OVERLAPPING GOVERNMENTS

LAST TEN FISCAL YEARS
(RATE PER $100 OF TAXABLE VALUE)
(131)
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 2021-2022 - 0.85225 0.14775 1.00000 0.04271 0.00350 0.04621 1.04621 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 - 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
165 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

TEN LARGEST PROPERTY TAXPAYERS

CURRENT FISCAL YEAR AND TEN YEARS AGO
(132)
Percent of Percent of
Total City Total City
Assessed Assessed Assessed Assessed
Ow ner/Taxpayer Primary Use Valuation Valuation Valuation Valuation Lhoberge LP Property management 71,737,723 $ 1.65 % 21,253,099 $ 0.79 % The Northern Trust Company Property management 43,445,480 1.00 - - Brixton Del Mar Plaza T I C LLC Trust 41,500,000 0.95 - - Jacobs Family Trust Trust 40,814,611 0.94 31,348,296 1.17 KS Mattson Partners LP Trust 34,289,025 0.79 - -
Allred Family Living Survivors Trust Property management 33,977,747 0.78 47,246,841 1.76 Miyago Do LLC Horse racing club 27,567,676 0.63 - -
Del Mar Thoroughbred Club Trust 27,153,007 0.62 25,343,854 0.94 McCarthy Revocable Survivors Trust Trust 24,735,282 0.57 21,316,139 0.79 Delfina Del Mar Development LLC Trust 23,782,664 0.55 - - Marsha J Naify Living Trust Property management - 19,583,964 - 0.73 La Atalaya LLC Trust - 19,776,616 - 0.74
Madeleine A Pickens Trust Trust - 23,000,000 - 0.86
Stensrud Family Trust Property management - 29,084,962 - 1.08 GLL BVK Properties 2007 LP Property management - 42,906,512 - 1.60 Top Ten Totals (Secured and Unsecured) 369,003,215 8.47 280,860,283 10.44 All Others (Secured) 3,986,952,549 91.53 2,408,752,147 89.56 Total Assessed Valuation $ 100.00 2,689,612,430 4,355,955,764 $ 100.00 Fiscal Year 2021-2022 Fiscal Year 2012-2013
166 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA
TOP 25 SALES TAX PRODUCERS

CURRENT FISCAL YEAR AND TEN YEARS AGO
(133)
Taxpayers Business Type Taxpayers Business Type
1 Beeside Balcony Casual Dining Americana Casual Dining 2 Biddle Barton Interiors Business Services Banana Republic Family Apparel 3 Brigantine Casual Dining Board & Brew Casual Dining
4 Chicken Charlies Enterprises Quick-Service Restaurants Brigantine Casual Dining 5 Del Mar Blue Print Co Business Services Bully's Del Mar Casual Dining 6 Del Mar Car Care Auto Repair Shops Chicken Charlies Enterprises Quick-service Restauran 7 Del Mar Pizza & Pasta Casual Dining Del Mar Blue Print Co Business Services 8 Del Mar Thoroughbred Club Leisure/Entertainment Del Mar Rendezvous Casual Dining 9 Design Line Interiors Home Furnishings Del Mar Thoroughbred Club Leisure/Entertainment 10 Dexters Deli Specialty Stores Design Line Interiors Furniture/Appliances 11 En Fuego Cantina & Grill Casual Dining En Fuego Cantina & Grill Casual Dining 12 Il Fornaio Fine Dining Flavor Del Mar Fine Dining
13 Jakes Del Mar Fast-Casual Restaurants Il Fornaio Fine Dining 14 Juicys Quick-Service Restaurants Jakes Del Mar Fast-Casual Restaurants 15 L'Auberge Del Mar Hotels/Motels Jimmy Os Casual Dining 16 Mattress Firm Home Furnishings JR Resources Inc Business Services 17 Monarch Casual Dining L'Auberge Del Mar Hotels/Motels 18 Pacifica Del Mar Restaurant Fast-Casual Restaurants Miw all Corp Sporting Goods/Bike Stor 19 Poseidon On The Beach Fast-Casual Restaurants Nettle Creek Shop Home Furnishings 20 Premier Food Services Quick-Service Restaurants Pacifica Del Mar Fine Dining 21 Rusty Surfboards Del Mar Sporting Goods/Bike Stores Pinnacle Appliance Distributors Electronics/Appliance Sto 22 Sbicca Fine Dining Poseidon Restaurant Casual Dining 23 Shibashi Izakaya Casual Dining Premier Food Services Quick-Service Restauran 24 Tamarindo Casual Dining Prepkitchen Del Mar Casual Dining 25 View point Brew ing Co Casual Dining Sbicca Fine Dining Percentage of Total Sales Tax Collected: 69.55 % 62.56 % 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 2021-2022 Fiscal Year 2012-2013
167 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

PROPERTY TAX LEVIES, TAX COLLECTIONS, AND DELINQUENCIES

LAST TEN FISCAL YEARS
(134)
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 2021-2022 $ 6,219,718 $ 6,152,218 98.91 % 6,047 $ $ 6,158,265 99.01 % 2020-2021 6,009,313 5,943,768 98.91 3,807 5,947,575 98.97 2019-2020 5,672,610 5,588,352 98.51 5,345 5,593,697 98.61 2018-2019 5,331,918 5,283,191 99.09 3,785 5,286,976 99.16 2017-2018 5,065,306 5,019,360 99.09 5,290 5,024,650 99.20 2016-2017 4,816,554 4,771,416 99.06 5,426 4,776,842 99.18 2015-2016 4,487,604 4,449,392 99.15 4,285 4,453,677 99.24 2014-2015 4,216,164 4,165,840 98.81 4,230 4,170,070 98.91 2013-2014 4,046,271 3,999,623 98.85 7,804 4,007,427 99.04 2012-2013 3,779,401 3,732,226 98.75 1,785 3,734,011 98.80 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. 168 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

RATIO OF OUTSTANDING DEBT BY TYPE

LAST TEN FISCAL YEARS
(135)
Fiscal Certificates of Revenue Certificates of Capital
Year Participation Leases Loans Notes Total Bonds Participation Leases Notes Total 2021-2022 $ 352,059 - $ 17,100,794 $ - $ 17,452,853 $ - $ - $ - $ 5,829,843 $ 5,829,843 2020-2021 452,946 - 17,602,114 - 18,055,060 - - 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 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 2021-2022 3,929 $ 23,282,696 $ 4,355,955,764 0.53 % $ 5,926 $ 486,655 2.09 % 2020-2021 4,258 24,288,285 4,239,256,907 0.57 5,704 440,525 1.81 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 5.11 169 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

PLEDGED-REVENUE COVERAGE

LAST TEN FISCAL YEARS
(136)
Net Total
Fiscal Operating Available Debt Percent
Year Revenue (1) Expenses (1) Revenue Principal Interest Principal Interest Service Coverage 2021-2022 8,881,606 $ 7,899,048 $ 982,558 $ 244,116 $ 99,901 $ - $ $ - $ 344,017 285.61 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 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
170 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

RATIO OF GENERAL BONDED DEBT OUTSTANDING

LAST TEN FISCAL YEARS
(137)
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 2021-2022 3,929 $ - $ 4,355,955,764 - % $ - $ 486,655 - % 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 0.01 353,818 40 208.13 2012-2013 4,199 335,000 2,689,757,322 0.01 344,910 80 102.96 Outstanding General Bonded Debt
171 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

DIRECT AND OVERLAPPING BONDED DEBT
JUNE 30, 2022
(138)
Fiscal Year 2021-2022 Assessed Valuation
Fiscal Year 2021-2022 Population
$4,355,955,764
3,929
Percent City's Share
Total Debt Applicable of Debt
June 30, 2022 to City(1) June 30, 2022
Overlapping Tax and Assessment Debt:

San Diego County General Obligations $ 245,340,000 0.719 1,763,995 $ San Diego County Pension Obligations 340,825,000 0.719 2,450,532 San Diego County Superintendent of Schools:

General Fund Obligations 7,780,000 0.719 55,938
San Dieguito Union High School District:

General Fund Obligations 12,730,000 5.769 734,394
Total Overlapping General Fund Debt 606,675,000 5,004,859 Direct Debt and Overlapping Tax and Assessment Debt:

Direct Debt:

City of Del Mar 17,100,794 100.000 17,100,794
Subtotal Direct Debt 17,100,794 17,100,794
Overlapping Tax and Assessment Debt:

Metropolitan Water District 20,175,000 0.128 25,824
Mira Costa Community College District 291,380,000 3.496 10,186,645 San Dieguito Union High School District 424,285,000 5.769 24,477,002 Del Mar Union School District 108,635,000 20.173 21,914,939 Solana Beach School District School
Facilities Improvements District 90,570,000 0.463 419,339 City of Del Mar 1915 Act Bonds 195,000 100.000 195,000
Subtotal Overlapping Tax and Assessment Debt 935,240,000 57,218,749 Total Direct and Overlapping Tax and Assessment Debt 952,340,794 74,319,543 Subtotal Overlapping Tax 1,541,915,000 62,223,608
Combined Total Debt $ 79,324,402 1,559,015,794 $
(1) Percentage of overlapping agency's assessed valuation located within the boundaries of the City Ratios to Fiscal Year 2021-2022 Assessed Valuation: Per Capita City Direct Debt 100.00% $ 4,352
Total Overlapping Tax and Assessment Debt 1.31% 18,916
Combined Total Debt 1.43% 20,189
State School Building Aid Repayable as of June 30, 2022 $ - 172 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

SCHEDULE OF LEGAL DEBT MARGIN

LAST TEN FISCAL YEARS
(139)
2012-2013 2013-2014 2014-2015 2015-2016
Assessed Valuation $ 2,689,757,322 $ 2,873,455,956 $ 2,986,826,078 $ 3,176,435,084 Conversion Percentage 25 % 25 % 25 % 25 %
Adjusted Assessed Valuation $ 672,439,331 $ 718,363,989 $ 746,706,520 $ 794,108,771 Debt Limit Percentage 15 % 15 % 15 % 15 %
Debt Limit $ 100,865,900 $ 107,754,598 $ 112,005,978 $ 119,116,316 Total Net Debt Applicable to Limit:

General Obligation Bonds 335,000 170,000 - -
Legal Debt Margin $ 100,530,900 $ 107,584,598 $ 112,005,978 $ 119,116,316 Total Debt Applicable to the Limit
as a Percentage of Debt Limit 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. How ever, this provision w as enacted w hen assessed valuation w as based upon 25% of market value. Effective w ith Fiscal Year 1981-1982, each parcel is now assessed at 100% of market value as of the most recent change in ow nership for that parcel. The computations show n above reflect a conversion of assessed valuation data for each fiscal year from current full valuation perspective to the 25% level that w as in effect at the time the legal debt margin w as enacted by the State of California for local governments located w ithin the State. 173 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

SCHEDULE OF LEGAL DEBT MARGIN (CONTINUED)

LAST TEN FISCAL YEARS
(140)
2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 $ 3,395,888,687 $ 3,572,849,349 $ 3,759,707,107 $ 3,759,707,107 $ 4,239,256,907 $ 4,355,955,764 25 % 25 % 25 % 25 % 25 % 25 %
$ 848,972,172 $ 893,212,337 $ 939,926,777 $ 939,926,777 $ 1,059,814,227 $ 1,088,988,941 15 % 15 % 15 % 15 % 15 % 15 %
$ 127,345,826 $ 133,981,851 $ 140,989,017 $ 140,989,017 $ 158,972,134 $ 163,348,341 - - - - - -
$ 127,345,826 $ 133,981,851 $ 140,989,017 $ 140,989,017 $ 158,972,134 $ 163,348,341 - % -% -% - % -% -%
Fiscal Year
174 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

DEMOGRAPHIC AND ECONOMIC STATISTICS

LAST TEN CALENDAR YEARS
(141)
City of Average Average
Del M ar Annual Annual Personal Personal
Housing City of Percent County of Percent Income Per Income Per Year Units (1) Del M ar Change San Diego Change (in Thousands) Capita (in Thousands) Capita 2022 2,615 3,929 (7.73)% 3,287,306 (1.32)% 486,655 $ $ 123,862 $ - $ - 2021 2,615 4,258 (0.23) 3,331,279 (0.36) 440,525 103,458 - - 2020 2,613 4,268 (4.11) 3,343,355 (0.25) 429,278 100,580 220,825,596 66,266 2019 2,615 4,451 2.98 3,351,786 0.42 491,975 110,531 202,642,332 60,845 2018 2,612 4,322 0.58 3,337,685 0.65 440,691 101,964 195,679,529 58,719 2017 2,611 4,297 0.54 3,316,192 0.84 397,110 92,415 193,296,405 58,289 2016 2,542 4,274 1.26 3,288,612 1.89 372,669 87,194 183,032,418 55,656 2015 2,605 4,221 (0.31) 3,227,496 1.04 423,864 100,418 170,114,527 52,708 2014 2,605 4,234 0.83 3,194,362 1.40 553,818 83,566 167,931,419 52,571 2013 2,637 4,199 0.12 3,150,178 0.21 344,910 82,141 165,008,428 52,381 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 M ar County of San Diego
175 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

DEMOGRAPHIC AND ECONOMIC STATISTICS (CONTINUED)

LAST TEN CALENDAR YEARS
(142)
Enrollment
Del M ar
Labor Unemployment Labor Unemployment Union
Force Employed Rate Force Employed Rate Elementary (5)
2,200 2,200 3.60 % 1,587,400 1,534,200 3.40 % 3,895
2,000 1,900 3.60 % 1,517,500 1,415,400 6.70 % 3,853
2,300 2,200 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
3,100 3,000 3.10 1,588,500 1,491,600 6.10 4,376
3,100 3,000 3.80 1,611,200 1,492,300 7.40 4,384
Source:
(4) State of California, Employment Development Department (EDD) (5) State of California, Department of Education, Educational Demographics Unit City of Del M ar County of San Diego
Employment (4)
176 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

TOP TEN PRINCIPAL EMPLOYERS

CURRENT YEAR AND PRIOR YEAR
(143)
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)98-729 16.91% (3)95-656 18.60 % L'Auberge Del Mar Resort Spa Resorts 179 8.14 176 8.80
Jake's Del Mar Restaurant 205 9.31 113 5.63
Monarch Ocean Pub Restaurant 4.36 96 88 4.40
Brigantine Seafood Restaurant Restaurant 95 4.23 4.65 85 Pacifica Del Mar Restaurant 2.95 65 65 3.25
Poseidon Restaurant Restaurant 2.95 65 65 3.25
Il Fornaio Private School 2.86 63 60 3.00
Sbicca An American Bistro Restaurant 2.18 48 48 2.40
Tamarindo Restaurant 2.00 44 55 2.75
Total Top Ten Employers 1,589 1,411
Total City Employment (2) 2,200 2,000
Notes:
(1) Represents non-governmental employers.
2022 2021
(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. 177 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

FULL-TIME EMPLOYEES BY FUNCTION

LAST TEN FISCAL YEARS
(144)
Function 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 General Government 19 19 20 21 22 24 25 26 25 25
Public Safety (1) 17 16 16 16 16 15 15 15 14 9
Public Works 13 13 13 13 13 14 14 15 14 15
Parks and Recreation 55555555411
Total 54 53 54 55 56 58 59 61 57 60
Note:
(1) Police services are provided by the County of San Diego, Sheriff's Department. 178 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

OPERATING INDICATORS BY FUNCTION

LAST TEN FISCAL YEARS
(145)
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 (M iles) 0.50 1.00 1.00 1.00 1.50 2.00 2.00 2.00 Street Slurry (M iles) 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. 179 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

CAPITAL ASSET STATISTICS BY FUNCTION

LAST TEN FISCAL YEARS
(146)
Function 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-18 2018-2019 2019-2020 2020-2021 2021-2022 Fire:

Stations 1 1 1 1 1 1 1 1 1 1
Public Works:

Streets (M iles) 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 81 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 M ains (M iles)(1) 29.87 29.87 29.87 29.87 29.87 29.87 29.87 29.87 29.87 29.87 M aximum 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 (M iles)(1) 24.98 24.98 24.98 24.98 24.98 24.98 24.98 24.98 24.98 24.98 Storm Drainage (M iles) 13.59 13.59 13.70 13.70 13.70 13.70 13.70 13.70 13.70 13.70 M aximum Daily Treatment
Capacity (Thousands
of Gallons) 877 877 877 877 877 877 877 877 877 1,476
Note:
(1) The unit of measure has been updated using the GIS system which provides a more accurate calculation.

Fiscal Year
180 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

MISCELLANEOUS STATISTICS
JUNE 30, 2022
(147)
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 361
Emergency Medical Incident Responses 1154
Public Service Calls 107
Fire Inspections 435
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 2,905,796
Baseball Field 1
Tennis Courts 2
Library 1
Library Inventory 16,804
Hotels:

Major Hotel Rooms 355
Average Percent Occupancy 56%
Average Room Rate $403
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 1,889 meters
Fire Hydrants 350
Sanitary Sewer Lines 24.98 miles
181 April 17, 2023 Item 09
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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
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 City of Del Mar (the City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated March 27, 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control. Accordingly, we do not express an opinion on the effectiveness of 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 or significant deficiencies may exist that were not identified. 182 April 17, 2023 Item 09
Honorable Mayor and Members of the City Council
City of Del Mar
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed 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 entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

CliftonLarsonAllen LLP
Irvine, California
March 27, 2023
183 April 17, 2023 Item 09

CITY OF DEL MAR, CALIFORNIA

AGREED-UPON PROCEDURES
APPROPRIATIONS LIMIT WORKSHEET NO. 6
YEAR ENDED JUNE 30, 2022
184 April 17, 2023 Item 09
(1)
INDEPENDENT ACCOUNTANTS’ REPORT

ON AGREED-UPON PROCEDURES
APPLIED TO APPROPRIATIONS LIMIT WORKSHEET NO. 6
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, 2022. 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, 2022, 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.

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CLAconnect.com
185 April 17, 2023 Item 09
City Council
City of Del Mar
Del Mar, California
(2)
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 of Del Mar, California and is not intended to be, and should not be, used by anyone other than these specified parties.

CliftonLarsonAllen LLP
Irvine, California
September 8, 2022
186 April 17, 2023 Item 09

CITY OF DEL MAR
APPROPRIATIONS LIMIT WORKSHEET NO. 6
YEAR ENDED JUNE 30, 2022
See accompanying Notes to Appropriations Limit Worksheet No. 6. (3)
Appropriations Limit for Fiscal Year Ended June 30, 2021 (see Note 2) 29,663,921 $ Adjustments Factors for the Fiscal Year Ended June 30, 2022 (see Note 2):

Inflation Population
Factor Factor Combined
(Note 3) (Note 4) Factor

1.0573000 0.9970000 1.0541281 x 0.05412810
Adjustment for Inflation and Population 1,605,651
Other Adjustments (Note 5) -
Total Adjustments 1,605,651
Appropriations Limit for Fiscal Year Ended June 30, 2022 $ 31,269,572 187 April 17, 2023 Item 09

CITY OF DEL MAR
NOTES TO APPROPRIATIONS LIMIT WORKSHEET NO. 6
JUNE 30, 2022
(4)
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 an agreedupon 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 2021-2022 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 2021-2022 represents the annual percentage change in the population for the City.

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, 2022.
188 April 17, 2023 Item 09
189 April 17, 2023 Item 09

BEGINNING ENDING

BALANCE O & M CIP BALANCE
JUL 1, 2021 REVENUES EXPENDITURES EXPENDITURES IN (OUT) JUN 30, 2022 ACTUAL FY 2022 FY 2022 FY 2022 FY 2022 FY 2022 ACTUAL
CONTINGENCY 37.08% 18,859,932 4,408,817 (12,893,973) - 559,219 (5,424,920) $ 5,509,075 RESTRICTED: SELF-INSURANCE 500,000 130,493 (182,198) - 1,705 - 450,000 DESIGNATED:

ENCUMBRANCES - - - - 104,095 - 104,095
COASTAL PARKING REVENUE - 81,900 (81,900) - - - -
SIDEWALK CAFÉ 5,300 - (5,300) - - - -
COVID ECONOMIC UNCERTAINTY RESERVE 200,000 - - - - (200,000) - PENSION RESERVE 1,220,200 - - - 1,072,500 - 2,292,700
LEAVE LIABILITY 100,000 - - - - - 100,000
EQUIPMENT REPLACEMENT 724,850 - (65,687) - 240,837 - 900,000 TOTAL GENERAL FUND 7,153,867 19,077,624 (13,229,057) - 1,978,356 (5,624,920) 9,355,870 3,297,998 3,302,561 - (907,051) - (1,526,375) 4,167,133 ENCUMBRANCES - - - - 1,526,375 - 1,526,375
TOTAL MEASURE Q FUND 3,302,561 3,297,998 - (907,051) 1,526,375 (1,526,375) 5,693,508 81,628 79,664 - - - (161,292) -
104,286 - (586,208) - 481,923 - -
439,968 - (1,016,918) - 576,950 - -

DESIGNATE D
ENCUMBRANCES 26,628 - - (26,628) 236,320 - 236,320
CAPITAL IMPROVEMENT PROJECTS - 75,000 - (110,683) 35,683 - - OPEN SPACE ACQUISITION 86,388 - - - - - 86,388
TREE RESERVE 34,267 1,500 - - - - 35,767
TOTAL OPEN SPACE FUND 147,283 516,468 (1,016,918) (137,311) 848,953 - 358,475 157,926 - - - - (157,926) -
57,034 15,436 (61,607) - - - 10,863
51,930 120,657 (37,917) - - - 134,669

CITY OF DEL MAR

RESERVE SUMMARY
FISCAL YEAR 2021-2022
(April 17, 2023)

TRANSFERS

FINAL FINANCIAL REPORT

GENERAL FUNDMEASURE QROAD MAINTENANCE REHABILITATION ACCTGAS TAX FUNDOPEN SPACE FUNDSUPPLEMENTAL LAW ENFORCEMENT FUNDREGIONAL COMMUNICATIONS FUNDGRANTS FUND 190 April 17, 2023 Item 09

BEGINNING ENDING

BALANCE O & M CIP BALANCE
JUL 1, 2021 REVENUES EXPENDITURES EXPENDITURES IN (OUT) JUN 30, 2022 ACTUAL FY 2022 FY 2022 FY 2022 FY 2022 FY 2022 ACTUAL

CITY OF DEL MAR

RESERVE SUMMARY
FISCAL YEAR 2021-2022
(April 17, 2023)

TRANSFERS

FINAL FINANCIAL REPORT
(3,489) 249,751 (95,600) - - - 150,662
HOUSING RESERVE - - - - 300,000 300,000
(3,489) 249,751 (95,600) - 300,000 - 450,662
193,546 219,262 (150,398) - - - 262,410
42,868 10,993 (10,427) - - 3,435 (40,000)
179,056 - (454,660) 275,604 - -
ENCUMBRANCES 308,370 (308,370) 360,815 360,815

RESERVE FOR CAPITAL - -
DEBT SERVICE - - (905,661) - 905,661 - -
TOTAL CAPITAL IMPROVEMENT FUND 308,370 179,056 (905,661) (763,030) 1,542,080 - 360,815 65,000 3,992 - (368,344) 299,352 - -
ENCUMBRANCES - - - - 432,630 - 432,630
TOTAL SPECIAL PROJECT FUND 3,992 65,000 - (368,344) 731,982 - 432,630 152,346 3,090 (152,680) - - - 2,756
2,479 10,365 - (5,000) - - 7,844
235,541 392,666 (228,848) - - - 399,360
NET POSITION 1,331,985 4,311,597 (4,496,231) - - (815,082) 332,269 RESTRICTED:

CONTRIBUTED CAPITAL 4,028,272 - - - - - 4,028,272

DESIGNATED

ENCUMBRANCES - - - - - - -
SELF-INSURANCE 50,000 - - - - - 50,000
RATE STABILIZATION 200,000 - - - - - 200,000
CAPTIAL REPLACEMENT 197,621 - - - - - 197,621
NET PENSION LIABILITY (1,536,001) - - - 674,832 - (861,169) PENSION RESERVE 640,250 - - - 140,250 - 780,500
OPERATING RESERVE 475,000 - - - - - 475,000
EQUIPMENT REPLACEMENT 400,000 - - - - - 400,000
UTILITY PLANT IN SERVICE 7,082,655 - 446,456 - - - 7,529,111 TOTAL WATER FUND 12,869,782 4,311,597 (4,049,775) - 815,082 (815,082) 13,131,604 PEG FEE FUNDHOUSING FUNDAB 939 FUNDCAPITAL IMPROVEMENT FUNDSPECIAL PROJECT FUNDTRANSNET FUNDRTCIPWORKERS' COMPENSATION FUNDWATER FUND 191 April 17, 2023 Item 09

BEGINNING ENDING

BALANCE O & M CIP BALANCE
JUL 1, 2021 REVENUES EXPENDITURES EXPENDITURES IN (OUT) JUN 30, 2022 ACTUAL FY 2022 FY 2022 FY 2022 FY 2022 FY 2022 ACTUAL

CITY OF DEL MAR

RESERVE SUMMARY
FISCAL YEAR 2021-2022
(April 17, 2023)

TRANSFERS

FINAL FINANCIAL REPORT
NET POSITION 122,974 632,375 (609,395) - - (145,954) (0)

DESIGNATED
UTILITY PLANT IN SERVICE 20,000 36,010 - - 56,010
ENCUMBRANCES 51,890 - (63,114) 246,799 235,575

CAPITAL REPLACEMENT RESERVE - - - -
TOTAL CLEAN WATER FUND 194,864 632,375 (573,385) (63,114) 246,799 (145,954) 291,585 NET POSITION 282,127 3,884,184 (3,428,709) - 100,000 (826,902) 10,700 -

RESTRICTED
IBANK RESERVE 228,828 - - - - - 228,828
CONTRIBUTED CAPITAL 650,814 - - - - - 650,814
LOAN RESERVE-STATE REVOLVING 332,979 - - - - - 332,979

DESIGNATED

ENCUMBRANCES - - - - - - -
SELF-INSURANCE 50,000 - - - - - 50,000

CAPITAL REPLACEMENT - - - - - - -
NET PENSION LIABILITY (1,544,128) - - - 678,402 - (865,726) PENSION RESERVE 668,500 - - - 148,500 - 817,000
OPERATING RESERVE 200,000 - - - - - 200,000
EQUIPMENT REPLACEMENT 100,000 - - - (100,000) -
UTILITY PLANT IN SERVICE 8,648,413 - 25,756 - - - 8,674,169 RATE STABILIZATION 200,000 - - - - - 200,000
TOTAL WASTEWATER FUND 9,817,533 3,884,184 (3,402,953) - 926,902 (926,902) 10,298,764 TOTAL ENTERPRISE FUNDS 8,828,156 22,882,179 (8,026,113) (63,114) 1,988,783 (1,887,938) 23,721,953 TOTAL - ALL FUNDS 33,040,398 34,900,136 (24,501,435) (2,243,850) 9,398,452 (9,398,452) 41,195,250CLEANWATER FUND

WASTEWATER FUND
192 April 17, 2023 Item 09
ACTUAL ACTUAL ACTUAL FINAL FINAL ACTUAL % PROJECTED

REVENUE REVENUE REVENUE ADOPTED AMENDED REVENUE RECV'D REVENUE

FINAL FINAL FINAL BUDGET BUDGET FINAL FY
SOURCE OF FUNDS FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2021-22 FY 2021-22 2021-22 FY 2021-22GENERAL FUNDTAXES PROPERTY TAX 5,983,399 5,662,270 6,384,954 6,472,770 6,610,000 6,615,450 100.1% 6,610,000 VLF IN LIEU OF PROPERTY TAX 641,659 603,682 680,800 701,060 701,060 699,411 99.8% 699,380 SALES AND USE TAX 1,472,389 2,208,416 1,147,970 1,340,000 1,850,000 2,068,716 111.8% 1,850,000 TRANSIENT OCCUPANCY TAX 2,300,504 2,982,510 1,792,090 2,100,000 3,200,000 3,419,866 106.9% 3,200,000 BUSINESS LICENSE TAX 235,557 243,198 229,534 225,000 225,000 282,187 125.4% 260,000 FRANCHISE TAX 390,482 424,931 324,804 375,000 375,000 404,226 107.8% 369,000 REAL PROPERTY TRANSFER TAX 160,983 202,674 220,962 150,000 150,000 274,365 182.9% 220,000 TOTAL 11,184,973 12,327,680 10,781,114 11,363,830 13,111,060 13,764,222 105.0% 13,208,380LICENSES & PERMITS LICENSES & PERMITS 5,778 21,786 10,096 5,000 5,000 352 7.0% 2,000 JUNIOR LIFEGUARD 39,651 52,103 - 97,800 97,800 88,689 90.7% 87,980 PARKING PERMITS 29,465 34,755 21,315 25,000 25,000 31,333 125.3% 27,000 TOTAL 74,894 108,644 31,411 127,800 127,800 120,374 94.2% 116,980FINES & FORFEITURES MOVING VIOLATIONS/VEHICLE CODE FINES 78,894 90,538 47,019 70,000 70,000 42,640 60.9% 40,000 PARKING VIOLATIONS 593,192 508,842 896,374 675,000 700,000 903,237 129.0% 750,000 PENALTIES 13,257 13,119 12,106 12,000 12,000 23,939 199.5% 15,000 ADMINISTRATIVE CITATIONS 23,893 26,245 27,600 22,000 22,000 43,595 198.2% 38,000 RED LIGHT ENFORCEMENT 88,651 102,118 65,903 70,000 70,000 52,859 75.5% 55,000 TOTAL 797,887 740,862 1,049,003 849,000 874,000 1,066,270 122.0% 898,000REVENUE FROM USE OF ASSETS INTEREST EARNINGS 135,117 229,761 48,673 60,000 60,000 42,271 70.5% 50,000 INTEREST EARNINGS - FMV - - - - - (225,484) 100.0% - RENTAL INCOME 195,857 221,258 133,190 190,000 190,000 199,944 105.2% 190,000 LEASE INCOME/LOSS - - - - - (23,315) 100.0% - PARKING METER INCOME 1,072,694 1,127,508 1,600,304 1,200,000 1,475,000 1,513,143 102.6% 1,475,000 SIDEWALK CAFÉ USER FEE 5,194 10,424 2,940 5,300 5,300 6,339 119.6% 5,300 TOTAL 1,408,862 1,588,951 1,785,107 1,455,300 1,730,300 1,512,898 87.4% 1,720,300REVENUE FROM OTHER AGENCIES MOTOR VEHICLE LICENSE FEE 3,523 2,075 3,130 3,530 3,530 4,919 139.4% 4,920 PUBLIC SAFETY AUGMENTATION FUND 81,422 83,629 85,433 83,900 83,900 102,840 122.6% 90,000 HOMEOWNER EXEMPT 37,492 36,175 36,737 38,740 38,740 35,718 92.2% 35,700 STATE MANDATED COST REIMB 6,583 215 - 3,000 3,000 - 0.0% 1,500 FEDERAL/STATE GRANTS - 24,363 21,325 - - - 0.0% - CONTRACT SOLANA BEACH 2,925 18,975 - - - - 0.0% - OFF-TRACK PARIMUTUEL 5,026 19,208 2,417 - - 7,380 100.0% 4,450 SOLID WASTE 30,369 29,807 23,853 28,000 28,000 27,761 99.1% 27,760 TOTAL 167,341 214,447 172,895 157,170 157,170 178,619 113.6% 164,330

CITY OF DEL MAR
FISCAL YEAR 2021-2022

FINAL FINANCIAL REPORT

REVENUE SUMMARIES
193 April 17, 2023 Item 09
ACTUAL ACTUAL ACTUAL FINAL FINAL ACTUAL % PROJECTED

REVENUE REVENUE REVENUE ADOPTED AMENDED REVENUE RECV'D REVENUE

FINAL FINAL FINAL BUDGET BUDGET FINAL FY
SOURCE OF FUNDS FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2021-22 FY 2021-22 2021-22 FY 2021-22

CITY OF DEL MAR
FISCAL YEAR 2021-2022

FINAL FINANCIAL REPORT

REVENUE SUMMARIES
CHARGES - PLANNING SERVICES PLANNING SERVICES 364,135 424,409 505,823 480,000 480,000 541,624 112.8% 520,000 ENGINEERING SERVICES 128,420 114,511 170,688 155,000 155,000 151,057 97.5% 158,000 BUILDING SERVICES 325,694 323,506 504,913 460,000 460,000 435,382 94.6% 410,000 TOTAL 818,249 862,426 1,181,424 1,095,000 1,095,000 1,128,062 103.0% 1,088,000OTHER REVENUE SOURCES PARKING IN-LIEU FEE - 5,253 1,554 1,550 1,550 8,510 549.1% 2,790 SALE OF PROPERTY - 18,723 - - 28,600 28,600 100.0% 28,600 ADMINISTRATIVE CHARGE 875,320 841,650 910,340 937,650 937,650 910,344 97.1% 937,650 CONTRIBUTIONS 17,939 2,831 214,996 - 43,720 43,719 100.0% 45,430 CORONAVIRUS RELIEF FUNDS (CSLFRF) 515,000 - - - 0.0% - ADMINISTRATIVE CHARGE-MEASURE Q 154,603 - 53,259 130,000 130,000 68,951 53.0% 65,000 WC/STD REIMBURSEMENTS 43,456 54,871 39,320 - 20,500 35,709 174.2% 36,000 INSURANCE CLAIM REIMBURSEMENT 596,159 577,174 682,619 360,000 134,000 130,493 97.4% 134,290 EXPENDITURE REIMBURSEMENT 210,622 40,111 55,042 5,170 5,170 25,305 489.5% 26,000 MISCELLANEOUS 65,590 89,135 166,013 73,350 73,350 55,548 75.7% 42,800 TOTAL 1,963,690 1,629,748 2,123,143 2,022,720 1,374,540 1,307,179 95.1% 1,318,560TOTAL GENERAL FUND 16,415,896 17,472,758 17,124,097 17,070,820 18,469,870 19,077,624 103.3% 18,514,550MEASURE Q FUND 2,320,275 2,863,314 2,339,901 2,200,000 2,850,000 3,297,998 115.7% 2,850,000EMERGENCY EXPENDITURE FUND 77,494 - 53,167 - - - -ROAD MAINTENANCE REHAB ACCOUNT 78,438 80,755 79,664 86,990 86,990 81,628 93.8% 88,200GAS TAX FUND 108,677 94,697 101,400 119,380 119,380 104,286 87.4% 117,000OPEN SPACE FUND TAXES 2,528 12,636 10,958 6,000 6,000 27,412 456.9% 24,000 LICENSE & PERMITS 185,712 361,938 109,794 260,000 270,000 358,560 132.8% 290,000 FEDERAL/STATE GRANTS - - - 180,000 215,000 35,000 16.3% 215,000 OFF-TRACK PARIMUTUEL 3,351 7,427 1,612 1,500 1,500 4,227 281.8% 3,100 CONTRIBUTIONS 15,000 23,230 - - - 40,000 0.0% - MISCELLANEOUS 51,900 45,235 39,667 42,860 42,860 51,268 119.6% 49,460TOTAL OPEN SPACE FUND 258,491 450,467 162,031 490,360 535,360 516,468 96.5% 581,560 194 April 17, 2023 Item 09
ACTUAL ACTUAL ACTUAL FINAL FINAL ACTUAL % PROJECTED

REVENUE REVENUE REVENUE ADOPTED AMENDED REVENUE RECV'D REVENUE

FINAL FINAL FINAL BUDGET BUDGET FINAL FY
SOURCE OF FUNDS FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2021-22 FY 2021-22 2021-22 FY 2021-22

CITY OF DEL MAR
FISCAL YEAR 2021-2022

FINAL FINANCIAL REPORT

REVENUE SUMMARIES
SUPPLEMENTAL LAW FUND 156,727 155,948 101,850 100,000 161,280 157,926 97.9% 161,280REGIONAL COMMUNICATION 48,001 44,702 44,186 48,000 48,000 57,034 118.8% 48,000GRANTS FUND 149,340 44,914 69,787 51,470 58,920 51,930 88.1% 59,700HOUSING FUND 31,413 33,467 51,620 3,000 3,000 (3,489) 0.0% 1,000AB 939 71,308 66,108 51,475 65,000 200,400 193,546 96.6% 199,680PEG FEE FUND 45,479 47,946 44,183 46,000 46,000 42,868 93.2% 44,000CAPITAL IMPROVEMENT FUND FEDERAL/STATE GRANTS 656,854 702,155 144,140 371,830 744,788 211,768 28.4% 744,788 CONTRIBUTIONS - 2,500 - - - - 0.0% - LOAN PROCEEDS - 1,587,535 - - - - 0.0% - MISCELLANEOUS - 25,739 - - - (32,712) 0.0% -TOTAL CAPITAL IMPROVEMENT FUND 656,854 2,317,929 144,140 371,830 744,788 179,056 24.0% 744,788TRANSNET FUND 214,328 196,019 75,050 205,000 223,000 152,346 68.3% 223,000RTCIP FUND 2,658 2,565 2,715 - 2,600 2,479 2,680SPECIAL PROJECTS FUND - - 147,170 - - 65,000 -TOTAL GENERAL GOVERNMENTAL FUNDS 20,635,377 23,871,589 20,592,435 20,857,850 23,549,588 23,976,701 101.8% 23,635,438WORKERS' COMPENSATION FUND 273,518 262,053 240,157 266,500 266,500 235,541 88.4% 244,200WATER UTILITY FUND WATER SALES 2,049,166 1,911,396 2,394,497 2,063,820 2,250,000 2,393,663 106.4% 2,250,000 READY TO SERVE CHARGE 1,533,110 1,376,898 1,644,154 1,471,600 1,600,000 1,747,817 109.2% 1,550,000 OTHER CONNECTION FEES 72,400 27,178 64,876 31,400 31,400 62,444 198.9% 60,000 MISCELLANEOUS 64,133 76,547 192,421 80,320 176,260 107,673 61.1% 165,000 TOTAL OPERATING REVENUE 3,718,809 3,392,019 4,295,948 3,647,140 4,057,660 4,311,597 106.3% 4,025,000 195 April 17, 2023 Item 09
ACTUAL ACTUAL ACTUAL FINAL FINAL ACTUAL % PROJECTED

REVENUE REVENUE REVENUE ADOPTED AMENDED REVENUE RECV'D REVENUE

FINAL FINAL FINAL BUDGET BUDGET FINAL FY
SOURCE OF FUNDS FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2021-22 FY 2021-22 2021-22 FY 2021-22

CITY OF DEL MAR
FISCAL YEAR 2021-2022

FINAL FINANCIAL REPORT

REVENUE SUMMARIES
CLEAN WATER PROGRAM SERVICE CHARGE 559,754 545,045 589,891 560,000 560,000 632,149 112.9% 560,000 MISCELLANEOUS 2,839 4,128 32,396 2,000 37,550 226 0.6% 53,650 TOTAL CLEAN WATER PROGRAM 562,593 549,173 622,287 562,000 597,550 632,375 105.8% 613,650WASTEWATER FUND SERVICE CHARGES 1,592,732 1,473,337 1,677,265 1,700,000 1,700,000 1,767,441 104.0% 1,720,000 USAGE CHARGES 1,647,404 1,754,980 1,672,477 1,650,000 1,800,000 2,008,043 111.6% 1,800,000 OTHER SEWER FEES 99,875 19,331 74,101 55,000 75,000 90,210 120.3% 80,000 MISCELLANEOUS 91,887 93,437 258,327 65,000 65,000 18,490 28.4% 33,100 TOTAL WASTEWATER FUND 3,431,897 3,341,084 3,682,170 3,470,000 3,640,000 3,884,184 106.7% 3,633,100TOTAL ENTERPRISE FUNDS 7,713,299 7,282,276 8,600,405 7,679,140 8,295,210 8,828,156 106.4% 8,271,750TOTAL ALL FUNDS 28,622,194 31,415,918 29,432,997 28,803,490 32,111,298 33,040,398 102.9% 32,151,388 196 April 17, 2023 Item 09
ACTUAL ACTUAL ACTUAL FINAL ACTUAL % PROJECTED

EXP EXP EXP ADOPTED AMENDED EXP EXPENSED EXP

FINAL FINAL FINAL BUDGET BUDGET FINAL
DEPARTMENT FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2021-22 FY 2021-22 FY 2021-22 FY 2021-22GENERAL FUNDGENERAL GOVERNMENT CITY COUNCIL 71,543 84,861 22,669 22,780 22,780 22,010 96.6% 22,370 LEGAL SERVICES 1,047,924 1,204,636 569,951 768,450 542,450 432,042 79.6% 530,000 CITY MANAGER 1,049,395 919,151 971,234 886,660 886,660 850,489 95.9% 850,000 HUMAN RESOURCES 186,593 169,371 191,669 188,450 188,450 168,257 89.3% 174,860 CITY CLERK 283,423 277,157 252,426 264,640 264,640 247,843 93.7% 260,000 INFORMATION SYSTEMS 457,784 432,371 392,818 468,190 468,190 449,278 96.0% 460,000 FINANCE SERVICES 718,672 761,238 715,272 743,220 770,580 781,332 101.4% 790,000 RISK MANAGEMENT 328,290 196,567 416,184 241,900 274,500 286,591 104.4% 281,900 PLANNING SERVICES 1,102,865 1,057,049 954,394 1,194,290 1,194,290 1,124,971 94.2% 1,180,000 CODE ENFORCEMENT 124,211 91,341 129,128 126,950 126,950 140,177 110.4% 147,000 BUILDING SERVICES 287,513 309,959 423,102 369,350 369,350 349,196 94.5% 365,000 TOTAL 5,658,213 5,503,701 5,038,847 5,274,880 5,108,840 4,852,186 95.0% 5,061,130PUBLIC SAFETY LAW ENFORCEMENT 2,545,856 2,409,932 2,647,355 2,667,210 2,667,210 2,635,662 98.8% 2,662,180 LIFEGUARD SERVICES 1,141,311 1,066,742 1,125,842 1,219,800 1,241,520 1,267,016 102.1% 1,240,000 PARKING ENFORCEMENT 689,980 817,868 742,191 839,620 839,620 826,516 98.4% 845,220 FIRE PROTECTION 2,328,292 2,153,420 2,373,982 2,421,880 2,546,880 2,288,940 89.9% 2,500,000 HAZARDOUS WASTE MANAGEMENT 16,417 15,185 17,648 20,250 20,250 17,629 87.1% 20,250 SOLID WASTE 2,845 4,060 4,207 5,000 5,000 4,647 92.9% 5,000 EMERGENCY PREPAREDNESS 2,878 2,010 1,318 4,550 4,550 1,314 28.9% 4,350 TOTAL 6,727,579 6,469,217 6,912,543 7,178,310 7,325,030 7,041,723 96.1% 7,277,000PUBLIC WORKS ENGINEERING SERVICES 238,745 252,122 174,469 205,000 220,000 145,511 66.1% 210,000 STORM DRAIN 104,104 79,060 91,273 130,890 130,890 134,225 102.5% 132,210 FACILITIES 196,114 168,492 238,954 222,690 277,290 184,408 66.5% 270,000 TOTAL 538,963 499,674 504,696 558,580 628,180 464,144 73.9% 612,210NON-DEPARTMENTAL COMMUNITY SUPPORT 302,690 313,847 274,573 252,100 358,330 390,627 109.0% 358,330 TV STUDIO 101,613 87,902 80,574 111,170 111,170 82,855 74.5% 102,000 CITY MEMBERSHIPS 89,063 80,029 88,191 91,640 91,640 90,754 99.0% 91,380 LEASE PRINCIPAL & INTEREST - - - - - 111,438 100.0% - CITY HALL - GENERAL 125,338 169,953 111,432 147,450 129,645 147,450 87.9% 143,000 TOTAL 618,704 651,731 554,770 602,360 708,590 805,319 113.7% 694,710

CITY OF DEL MAR
FISCAL YEAR 2021-2022

FINAL FINANCIAL REPORT

EXPENDITURE SUMMARIES
197 April 17, 2023 Item 09
ACTUAL ACTUAL ACTUAL FINAL ACTUAL % PROJECTED

EXP EXP EXP ADOPTED AMENDED EXP EXPENSED EXP

FINAL FINAL FINAL BUDGET BUDGET FINAL
DEPARTMENT FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2021-22 FY 2021-22 FY 2021-22 FY 2021-22

CITY OF DEL MAR
FISCAL YEAR 2021-2022

FINAL FINANCIAL REPORT

EXPENDITURE SUMMARIES
TOTAL GENERAL FUND BEFORE EQUIPMENT REPLACEMENT 13,543,459 13,124,320 13,010,855 13,614,130 13,770,640 13,163,371 95.6% 13,645,050 EQUIPMENT REPLACEMENT 75,149 137,517 55,423 103,200 165,200 65,687 39.8% 165,200TOTAL GENERAL FUND INCLUDING EQUIPMENT REPLACEMENT 13,618,608 13,261,837 13,066,278 13,717,330 13,935,840 13,229,057 94.9% 13,810,250 MEASURE Q FUND 3,009,140 4,102,363 202,171 75,000 2,433,425 907,051 37.3% 2,395,125EMERGENCY EXPENDITURE FUND 65,693 - 30,316 - - - 0% -ROAD MAINTENANCE REHAB ACCOUNT - - - - - - 0% -GAS TAX FUND STREET MAINTENANCE 175,828 129,560 132,780 232,690 212,690 182,099 85.6% 195,000 STREET LIGHTS/SIGNS 141,233 126,611 101,422 124,610 130,610 125,632 96.2% 132,000 STREET LANDSCAPING 242,857 250,266 199,692 221,730 250,430 278,477 111.2% 260,590TOTAL GAX TAX FUND 559,918 506,437 433,894 579,030 593,730 586,208 98.7% 587,590OPEN SPACE FUND POWERHOUSE OPERATIONS 373,555 384,173 240,099 389,900 389,900 371,958 95.4% 380,000 BEACH MAINTENANCE 312,320 302,391 310,229 349,880 356,380 337,950 94.8% 352,810 PARK MAINTENANCE 256,872 229,995 222,509 282,560 306,700 307,011 100.1% 305,000TOTAL OPEN SPACE FUND 942,747 916,559 772,837 1,022,340 1,052,980 1,016,918 96.6% 1,037,810SUPPLEMENTAL LAW ENFORCEMENT 252,745 223,155 - - - - 0% -REGIONAL COMMUNICATION FUND 79,273 72,217 86,302 59,760 59,760 61,607 103.1% 59,760GRANTS FUND 127,277 23,895 29,309 53,970 53,970 37,917 70.3% 53,970HOUSING FUND 102,908 109,232 87,035 99,550 99,550 95,600 96.0% 97,740AB 939 47,158 16,567 88,477 172,120 172,120 150,398 87.4% 122,000PEG FEE FUND 5,780 5,663 6,949 6,500 6,500 10,427 160.4% 10,500TOTAL GENERAL O&M FUNDS 18,811,247 19,237,925 14,803,570 15,785,600 18,407,875 16,095,184 87.4% 18,174,745 198 April 17, 2023 Item 09
ACTUAL ACTUAL ACTUAL FINAL ACTUAL % PROJECTED

EXP EXP EXP ADOPTED AMENDED EXP EXPENSED EXP

FINAL FINAL FINAL BUDGET BUDGET FINAL
DEPARTMENT FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2021-22 FY 2021-22 FY 2021-22 FY 2021-22

CITY OF DEL MAR
FISCAL YEAR 2021-2022

FINAL FINANCIAL REPORT

EXPENDITURE SUMMARIES
CAPITAL IMPROVEMENT FUNDS OPEN SPACE CIP 188,091 101,557 84,595 530,000 556,728 137,311 24.7% 556,728 GENERAL FUND CIP 1,759,265 4,064,322 298,818 810,000 1,529,580 763,030 49.9% 1,529,580 DEBT SERVICE-CITY HALL 922,153 909,542 906,996 905,670 905,670 905,661 100.0% 905,670 TRANSNET II CIP 193,004 196,019 59,859 205,000 205,000 152,680 74.5% 205,000 RTCIP FUND - - - 5,000 5,000 5,000 100.0% 5,000TOTAL CAPITAL IMPROVEMENT FUNDS 3,062,513 5,271,440 1,350,268 2,455,670 3,201,978 1,963,682 61.3% 3,201,978SPECIAL PROJECT FUND 840,409 228,213 297,055 621,500 810,492 368,344 45.4% 810,492TOTAL GENERAL GOVERNMENTAL FUNDS 22,714,169 24,737,578 16,450,893 18,862,770 22,420,345 18,427,211 82.2% 22,187,215WORKERS' COMPENSATION FUND 354,414 275,226 286,439 258,000 258,000 228,848 88.7% 258,000WATER FUND GENERAL ADMINISTRATION 1,685,804 1,655,909 1,739,596 1,843,010 1,843,010 1,773,437 96.2% 1,805,110 RISK MANAGEMENT 65,813 52,789 94,604 108,450 108,450 153,582 141.6% 106,000 RAW WATER SUPPLY 1,440,942 1,398,376 1,607,704 1,651,560 1,651,560 1,647,167 99.7% 1,697,000 TREATMENT/DELIVERY 299,852 277,414 346,427 392,250 392,250 445,740 113.6% 390,000TOTAL WATER FUND O&M 3,492,411 3,384,488 3,788,331 3,995,270 3,995,270 4,019,926 100.6% 3,998,110 WATER CAP IMPROVEMENT 127,379 832,312 16,619 140,000 1,053,000 29,848 2.8% 1,053,000TOTAL WATER FUND 3,619,790 4,216,800 3,804,950 4,135,270 5,048,270 4,049,775 80.2% 5,051,110CLEAN WATER FUND PLANNING 58,320 49,620 48,032 47,770 47,770 59,593 124.7% 60,000 CODE ENFORCEMENT 30,425 25,083 32,856 34,320 34,320 35,490 103.4% 35,650 CLEAN WATER MANAGEMENT 235,516 254,781 211,351 299,500 299,500 266,563 89.0% 280,000 PUBLIC WORKS 231,490 231,990 201,981 242,940 250,300 211,739 84.6% 250,300TOTAL CLEAN WATER O & M 555,751 561,474 494,220 624,530 631,890 573,385 90.7% 625,950 CLEAN WATER CAP IMPROVEMENT 62,607 - 20,832 273,000 334,890 63,114 18.8% 334,890TOTAL CLEAN WATER FUND 618,358 561,474 515,052 897,530 966,780 636,499 65.8% 960,840 199 April 17, 2023 Item 09
ACTUAL ACTUAL ACTUAL FINAL ACTUAL % PROJECTED

EXP EXP EXP ADOPTED AMENDED EXP EXPENSED EXP

FINAL FINAL FINAL BUDGET BUDGET FINAL
DEPARTMENT FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2021-22 FY 2021-22 FY 2021-22 FY 2021-22

CITY OF DEL MAR
FISCAL YEAR 2021-2022

FINAL FINANCIAL REPORT

EXPENDITURE SUMMARIES
WASTEWATER FUND RISK MANAGEMENT 175,772 115,154 98,838 153,450 153,450 138,316 90.1% 106,000 WASTEWATER TRANSPORTATION 335,446 79,619 216,715 164,400 164,400 16,540 10.1% 160,000 WASTEWATER TREATMENT 709,837 814,173 736,349 912,500 912,500 703,746 77.1% 885,000 DEBT SERVICE 565,740 573,560 564,625 570,440 570,440 161,382 28.3% 570,440 WASTEWATER PROGRAM 2,532,350 2,188,037 2,014,779 2,271,240 2,271,240 2,382,970 104.9% 2,280,000TOTAL WASTEWATER FUND O&M 4,319,145 3,770,543 3,631,306 4,072,030 4,072,030 3,402,953 83.6% 4,001,440 WASTEWATER CAPITAL IMPROVEMENT 62,848 484,222 16,368 125,000 462,470 - 0.0% 462,470TOTAL WASTEWATER FUND 4,381,993 4,254,765 3,647,674 4,197,030 4,534,500 3,402,953 75.0% 4,463,910TOTAL ENTERPRISE FUNDS 8,620,141 9,033,039 7,967,676 9,229,830 10,549,550 8,089,227 76.7% 10,475,860TOTAL EXPENDITURES 34,045,843 31,688,724 24,705,007 28,350,600 33,227,895 26,745,285 80.5% 32,921,075 200 April 17, 2023 Item 09
City of Del Mar
Cash Flow Report
General Fund
Fiscal Year 2021-22
Revised Final
Adopted Budget Mid-Year 3rd Qtr Results Difference
FY 2022 FY 2022 FY 2022 FY 2022 FY 2022 (Final vs
Jun 2021 Nov 2021 Mar 2022 Jun 2022 Apr 2023 3rd Qtr)
(A) (B) (C) (D) (E) (F=E-D)
Total Revenue 17,075,540 17,070,820 18,673,640 18,469,870 19,077,624 607,754 Total Expenditures 13,734,050 13,717,330 14,144,840 13,935,840 13,229,057 (706,783) Transfers
Measure Q Loan - - - - - -
Emergency Fund - - - - - -
Gas Tax 459,650 459,650 474,350 474,350 481,923 7,573
Open Space 531,980 531,980 552,620 732,620 576,950 (155,670) SLESF (100,000) (100,000) (161,280) (161,280) (157,926) 3,354 Regional Comm 11,760 3,375 3,375 3,375 - (3,375)
Housing Fund Transfer 100,000 200,000 300,000 300,000 300,000 - Clean Water (non-CIP) 62,530 - - - - -
RMRA Reimb (86,990) (86,990) (166,654) (166,654) (161,292) 5,362 PEG Fee Reimb (40,000) (40,000) (40,000) (40,000) (40,000) - Total Transfers 938,930 968,015 962,411 1,142,411 999,655 (142,756) City Hall Debt 905,670 905,670 905,670 905,670 905,661 (9) Cash Flow (before CIP & SP) 1,508,890 $ 1,467,805 $ 2,660,719 $ 2,485,949 $ 3,943,251 $ 1,457,302 $ Transfer to CIP
Open Space 530,000 530,100 530,100 315,100 272,003 (43,097) General Fund 438,170 390,000 476,422 476,422 636,419 159,997 Clean Water 273,000 276,000 194,366 194,366 100,844 (93,522) Total CIP 1,241,170 1,196,100 1,200,888 985,888 1,009,266 23,378 Transfer to Special Projects 621,500 621,500 617,508 806,500 731,982 (74,518) Cash Flow (after CIP & SP) (353,780) $ (349,795) $ 842,323 $ 693,561 $ 2,202,003 $ 1,508,442 $ Reserves
Contingency Reserve %
Contingency Reserve $ 2,986,154 3,379,834 4,325,043 4,176,281 5,509,075 1,332,794 Encumbrance - - - - 104,095 104,095
Self-Insurance 300,000 378,447 378,447 378,447 450,000 71,553 Pension Reserve 1,470,200 2,292,700 2,292,700 2,292,700 2,292,700 - Leave Liability 63,123 100,000 100,000 100,000 100,000 - Equipment Replecement 721,650 900,000 900,000 900,000 900,000 - 7,050,981 5,541,127 7,996,190 7,847,428 9,355,870 1,508,442 201 April 17, 2023 Item 09

BEGINNING ENDING

BALANCE O & M CIP BALANCE
JUL 1, 2022 REVENUES EXPENDITURES EXPENDITURES IN (OUT) JUN 30, 2023 ACTUAL FY 2023 FY 2023 FY 2023 FY 2023 FY 2023 ESTIMATE CONTINGENCY 29.60% 19,637,485 5,509,075 (13,930,835) - 280,670 (6,684,758) $ 4,811,637 RESTRICTED: SELF-INSURANCE 450,000 - (398,450) - 320,003 - 371,553 DESIGNATED:

ENCUMBRANCES 104,095 - (104,095) - - - -
COASTAL PARKING REVENUE - 81,900 (81,900) - - - -
SIDEWALK CAFÉ 5,300 - (5,300) - - - -
PENSION RESERVE 2,292,700 - - - 1,107,300 - 3,400,000
LEAVE LIABILITY 100,000 - - - - - 100,000
EQUIPMENT REPLACEMENT 900,000 871,000 (885,600) - 100,000 - 985,400 TOTAL GENERAL FUND 9,355,870 20,595,685 (15,406,180) - 1,807,973 (6,684,758) 9,668,590 3,300,000 4,167,133 - (75,000) - - 7,392,133
ENCUMBRANCES 1,526,375 - - (1,526,375) - - -
TOTAL MEASURE Q FUND 5,693,508 3,300,000 - (1,601,375) - - 7,392,133 85,400 - - - - (85,400) -
107,000 - (870,410) - 763,410 - -
556,860 - (1,201,110) - 644,250 - -

DESIGNATE D

ENCUMBRANCES - - - - - - -
CAPITAL IMPROVEMENT PROJECTS 236,320 180,000 - (747,720) 331,400 - - OPEN SPACE ACQUISITION 86,388 - - - - - 86,388
TREE RESERVE 35,767 - - - - - 35,767
TOTAL OPEN SPACE FUND 358,475 736,860 (1,201,110) (747,720) 975,650 - 122,155 165,270 - - - - (165,270) -
48,000 10,864 (59,760) - 11,760 - 10,864

CITY OF DEL MAR

RESERVE SUMMARY
FISCAL YEAR 2022-2023
(Updated: April 17, 2023)

TRANSFERS

MID-YEAR FINANCIAL REPORT

GENERAL FUNDMEASURE QROAD MAINTENANCE REHABILITATION ACCTGAS TAX FUNDOPEN SPACE FUNDSUPPLEMENTAL LAW ENFORCEMENT FUNDREGIONAL COMMUNICATIONS FUND 202 April 17, 2023 Item 09

BEGINNING ENDING

BALANCE O & M CIP BALANCE
JUL 1, 2022 REVENUES EXPENDITURES EXPENDITURES IN (OUT) JUN 30, 2023 ACTUAL FY 2023 FY 2023 FY 2023 FY 2023 FY 2023 ESTIMATE

CITY OF DEL MAR

RESERVE SUMMARY
FISCAL YEAR 2022-2023
(Updated: April 17, 2023)

TRANSFERS

MID-YEAR FINANCIAL REPORT
58,704 134,669 (61,204) - - - 132,169
3,000 150,662 (99,550) - - - 54,112
HOUSING RESERVE 300,000 - - - 800,000 1,100,000
TOTAL HOUSING FUND 450,662 3,000 (99,550) - 800,000 - 1,154,112 150,000 262,410 (77,090) - - - 335,320
46,000 3,435 (15,300) - - 4,135 (30,000)
1,987,335 - (2,511,335) 524,000 - -
ENCUMBRANCES 360,815 - (360,815) 200,000 200,000

RESERVE FOR CAPITAL - -
DEBT SERVICE - - (904,290) - 904,290 - -
TOTAL CAPITAL IMPROVEMENT FUND 360,815 1,987,335 (904,290) (2,872,150) 1,628,290 - 200,000 225,000 432,630 - (1,371,130) 713,500 - -
417,700 2,756 - (417,700) - - 2,756
23,720 7,844 - - - - 31,564
271,500 399,360 (290,000) - - - 380,860
NET POSITION 332,269 4,270,460 (4,017,880) - 381,100 (538,807) 427,142 RESTRICTED:

CONTRIBUTED CAPITAL 4,028,272 - - - - - 4,028,272

DESIGNATED

ENCUMBRANCES - - - - - - -
SELF-INSURANCE 50,000 - - - - - 50,000
RATE STABILIZATION 200,000 - - - - - 200,000
CAPTIAL REPLACEMENT 197,621 - - (487,080) 319,307 - 29,848 NET PENSION LIABILITY (861,169) - - - - - (861,169)
PENSION RESERVE 780,500 - - - 219,500 - 1,000,000
OPERATING RESERVE 475,000 - - - - (200,000) 275,000
EQUIPMENT REPLACEMENT 400,000 - (18,900) - - (181,100) 200,000 UTILITY PLANT IN SERVICE 7,529,111 - (370,000) - - - 7,159,111 TOTAL WATER FUND 13,131,604 4,270,460 (4,406,780) (487,080) 919,907 (919,907) 12,508,204 PEG FEE FUNDGRANTS FUNDHOUSING FUNDAB 939 FUNDCAPITAL IMPROVEMENT FUNDSPECIAL PROJECT FUNDTRANSNET FUNDRTCIPWORKERS' COMPENSATION FUNDWATER FUND 203 April 17, 2023 Item 09

BEGINNING ENDING

BALANCE O & M CIP BALANCE
JUL 1, 2022 REVENUES EXPENDITURES EXPENDITURES IN (OUT) JUN 30, 2023 ACTUAL FY 2023 FY 2023 FY 2023 FY 2023 FY 2023 ESTIMATE

CITY OF DEL MAR

RESERVE SUMMARY
FISCAL YEAR 2022-2023
(Updated: April 17, 2023)

TRANSFERS

MID-YEAR FINANCIAL REPORT
NET POSITION - 692,000 (681,030) - (10,970) -
-

DESIGNATED -
UTILITY PLANT IN SERVICE 56,010 - 56,010
ENCUMBRANCES 235,575 - (243,173) 7,598 -
CAPITAL REPLACEMENT RESERVE - (268,218) 268,218 -
TOTAL CLEAN WATER FUND 291,585 692,000 (681,030) (511,391) 264,846 - 56,010 NET POSITION 10,700 3,810,000 (3,654,460) - 200,000 (332,100) 34,140 -

RESTRICTED
IBANK RESERVE 228,828 - - - - - 228,828
CONTRIBUTED CAPITAL 650,814 - - - - - 650,814
LOAN RESERVE-STATE REVOLVING 332,979 - - - - - 332,979

DESIGNATED

ENCUMBRANCES - - - - - - -
SELF-INSURANCE 50,000 - - - - - 50,000
CAPITAL REPLACEMENT - - - (270,200) 270,200 - -
NET PENSION LIABILITY (865,726) - - - - - (865,726)
PENSION RESERVE 817,000 - - - - - 817,000
OPERATING RESERVE 200,000 - - - - (200,000) -
EQUIPMENT REPLACEMENT - - (61,900) - 61,900 - -
UTILITY PLANT IN SERVICE 8,674,169 - (695,000) - - - 7,979,169 RATE STABILIZATION 200,000 - - - - - 200,000
TOTAL WASTEWATER FUND 10,298,764 3,810,000 (4,411,360) (270,200) 532,100 (532,100) 9,427,204 TOTAL ENTERPRISE FUNDS 8,772,460 23,721,953 (9,499,170) (1,268,671) 1,716,853 (1,452,007) 21,991,418 TOTAL - ALL FUNDS 36,993,634 41,195,251 (28,484,063) (8,278,746) 8,417,435 (8,417,435) 41,426,076CLEANWATER FUND

WASTEWATER FUND
204 April 17, 2023 Item 09
City of Del Mar
Agenda Report
________________________________________________________________________________________________________ City Council Action:

TO: Honorable Mayor and City Council Members
FROM: Clem Brown, Assistant City Manager
Via Ashley Jones, City Manager
DATE: April 17, 2023
SUBJECT: Coastal Connections Conceptual Planning Study Final Report, Public Feedback on Draft Design Concepts, and Recommendations for Further Evaluation
REQUESTED ACTION/RECOMMENDATION:

Receive the Final Coastal Connections Conceptual Planning Study (Attachment A) and a presentation from the San Diego Association of Governments (SANDAG) on the public comment period for the draft design concepts and provide feedback regarding SANDAG’s proposal to advance the top three (3) concept designs for further evaluation.

BACKGROUND
In January 2021, the City Council executed a Memorandum of Understanding (MOU) with SANDAG and North County Transit District (NCTD) to implement a feasibility study of potential pedestrian access improvements in the coastal railroad corridor along the Del Mar Bluffs.

The Coastal Connections Conceptual Planning Study (Planning Study) began in June 2021 and was led by SANDAG and lead consultant WSP in close coordination with the City of Del Mar, NCTD and the California Coastal Commission (Coastal Commission). The purpose of the study is to assess the opportunities and constraints of potential pedestrian access improvements between Coast Boulevard and Torrey Pines State Beach, a 1.6-mile section of the Los Angeles-San Diego-San Luis Obispo (LOSSAN) rail corridor situated among the coastal bluffs.

The Planning Study objectively evaluates the opportunities and constraints of a range of potential pedestrian access improvements including lateral trails, rail crossings, and beach access points at several possible locations.

On December 5, 2022, the City Council received a detailed briefing from SANDAG and lead consultant WSP on a draft of the Planning Study (Attachment B). The presentation included information on the study’s stakeholder engagement efforts, mitigation requirements for the Del Mar Bluffs Stabilization Project 5, SANDAG’s long-term plan to relocate the railroad off 1 April 17, 2023 Item 10
City Council Agenda Report
Final Coastal Connections Conceptual Planning Study
April 17, 2023