Fort Bragg City Council
January 24, 2022

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

PREPARED BY

ISAAC WHIPPY
For the Fiscal Year Ended
June 30, 2021

CITY OF FORT BRAGG

CALIFORNIA
City of Fort Bragg, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2021
Prepared by City of Fort Bragg Assistant Finance Director Isaac Whippy
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City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents
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Table of Contents ................................................................................................................................................. i Letter of Transmittal ........................................................................................................................................... vii Organization Chart ............................................................................................................................................ xvi GFOA Certificate of Achievement for Excellence in Financial Reporting ......................................................... xvii Independent Auditors’ Report ............................................................................................................................ 1 Management’s Discussion and Analysis (Required Supplementary Information) .............................................. 3 Basic Financial Statements:

Government‐Wide Financial Statements:

Statement of Net position .................................................................................................................... 23 Statement of Activities ......................................................................................................................... 24 Fund Financial Statements:

Governmental Funds:

Balance Sheet  ............................................................................................................................................. 28 Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position .................................................................................................................... 30 Reconciliation of Fund Basis Balance Sheet to Government‐wide Statement of Net Position – Governmental Activities ......................................................................... 31 Statement of Revenues, Expenditures, and Changes
in Fund Balances – Governmental Funds ............................................................................................. 32 Reconciliation of Fund Basis Statements to Government‐wide Statement of Activities ......................................................................................................................... 34 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................... 35 Statement of Revenues, Expenditures, and Changes in
Fund Balances ‐ Budget to Actual – General Fund and
Major Special Revenue Funds .............................................................................................................. 36 Proprietary Funds:

Statement of Net position – Proprietary Funds  ......................................................................................... 40 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds  ................................................................................................................................ 41 Statement of Cash Flows – Proprietary Funds  ........................................................................................... 42 INTRODUCTORY SECTION
FINANCIAL SECTION
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents
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Fiduciary Activities:

Statement of Fiduciary Net position – Fiduciary Activities ......................................................................... 45 Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds ....................................... 46 Notes to Basic Financial Statements ......................................................................................................... 49 Required Supplementary Information:

Schedule of Changes in Net OPEB Liability and Related Ratios .................................................................. 94 Schedule of Employer Contributions ‐ OPEB .............................................................................................. 95 Schedule of Contributions – Miscellaneous Plan ........................................................................................ 96 Schedule of Contributions – Safety Plan ..................................................................................................... 97 Schedule of City’s Proportionate Share of Net Pension Liability – Miscellaneous Plan ............................................................................................................................... 98 Schedule of City’s Proportionate Share of Net Pension Liability – Safety Plan ............................................................................................................................................ 99

Other Supplemental Information:

Combining and Individual Fund Financial Statements and Schedules:

Non‐major Governmental Funds:

Combining Balance Sheet  ........................................................................................................................ 110 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances  ................................................................................................................................ 114 Combining Balance Sheet – Federal and State Grant Special Revenue Funds  ........................................ 118 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Federal and State Grant Special Revenue Funds ................................................. 120 Combining Balance Sheet – Non‐major Capital Projects Funds ............................................................... 122 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐major Capital Projects Funds ....................................................................... 123 Internal Service Funds:

Combining Statement of Net position – Internal Service Funds  .............................................................. 125 Combining Statement of Revenues, Expenses, and Changes
in Net Position – Internal Service Funds  ............................................................................................ 126 Combining Statement of Cash Flows – Internal Service Funds  ................................................................ 127 City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Table of Contents
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Financial Trends
Net Position by Component ...................................................................................................................... 130 Change in Net Position .............................................................................................................................. 132 Fund Balances of Governmental Funds .................................................................................................... 136 Changes in Fund Balances of Governmental Funds .................................................................................. 138 Governmental Fund Tax Revenues by Source .......................................................................................... 140 Revenue Capacity
Principal Sales Tax Producers .................................................................................................................... 141 Historical Sales Tax Amounts by Benchmark Year .................................................................................... 142 Assessed Value and Estimated Actual Value of Taxable Property, City Wide .......................................... 144 Assessed Value of Property by Use Code, City Wide ................................................................................ 145 Direct and Overlapping Property Tax Rates .............................................................................................. 146 Principal Property Taxpayers .................................................................................................................... 148 Property Tax Levies and Collections ......................................................................................................... 149 Debt Capacity
Ratios of Outstanding Debt by Type ......................................................................................................... 150 Legal Debt Margin Information ................................................................................................................. 152 Direct and Overlapping Debt .................................................................................................................... 154 Pledged Revenue Coverage ...................................................................................................................... 156 Demographic and Economic Information
Demographic and Economic Statistics ...................................................................................................... 158 Principal Employers ................................................................................................................................... 159 Operating Information
Full‐Time and Part‐Time City Employees by Function (Full‐Time Equivalent) .......................................... 160 Operating Indicators by Function ............................................................................................................. 161 Capital Asset Statistics by Function .......................................................................................................... 162 Statistical Section
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INTRODUCTORY SECTION
 Letter of Transmittal
 Organizational Chart, Elected and Appointed Officials vi
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December 31, 2021
To the Citizens of the City of Fort Bragg, Honorable Mayor and Members of the City Council:

As  required by State and  federal law,  the Annual Comprehensive Financial Report  (ACFR) of  the City of Fort Bragg (City) for the fiscal year ended June 30, 2021, is hereby published.

Management assumes full responsibility for the completeness and reliability of the information contained in this report based upon a comprehensive framework of internal controls that are established for this purpose.

Because  the  cost  of  internal  control  should  not  exceed  anticipated  benefits,  the  objective  is  to  provide reasonable,  rather  than  absolute,  assurance  that  the  financial  statements  are  free  of  any  material misstatements.

The City’s basic financial statements have been audited by JJACPA, Inc., an accounting firm fully licensed and qualified to perform audits of local governments within the State of California. The financial statements included in this report were audited in accordance with generally accepted auditing standards and government auditing standards. The independent auditors concluded that there was a reasonable basis for rendering an unmodified (“clean”) opinion  that  the City’s basic  financial statements  for  the  fiscal year ended  June 30, 2021 are  fairly presented in  conformity with accounting  principles generally accepted in  the United States of America. The independent auditor’s report is presented as the first component of the financial section of this report.

The independent audit of the City’s basic financial statements is part of a broader, federally‐mandated Single Audit designed  to meet  the special needs of  federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the City’s fair presentation of the financial statements,  but  also  on  the  City’s  internal  controls  and  compliance  with  legal  requirements,  with  special emphasis on internal controls and legal requirements involving the administration of federal awards.

Management’s Discussion and Analysis  (MD&A) immediately  follows  the report of  the independent auditors and provides a narrative introduction, overview and analysis of the basic financial statements. The MD&A was designed to complement this letter of transmittal and should be read in conjunction with it.

This report combines the financial statements of the City, ‐ the Fort Bragg Redevelopment Successor Agency (Successor  Agency),  and  the  Fort  Bragg  Municipal  Improvement  District  No.  1  (MID)  in  accordance  with principles  defining  the  governmental  reporting  entity  adopted  by  the  Governmental  Accounting  Standards Board (GASB). The financial operations of the Successor Agency and MID, though legally separate from the City, are closely related to the City. The City Council members serve as the governing board for the MID, which is presented  as  a  blended  component  unit  in  the  financial  statements.  Component  units  are  legally  separate entities for which the primary government is financially accountable. For a more detailed overview of the City’s component units, see the Management Discussion and Analysis (MD&A) and the Notes to the Basic Financial Statements on pages 3‐19 and 49‐92, respectively.
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Profile of the Government
The City of Fort Bragg, incorporated in 1889, is located approximately 165 miles north of San Francisco and 188 miles west of Sacramento on the scenic coast of Mendocino County. The City occupies 2.7 square miles. Census 2020 places the City’s population at 6,983. Although it is quite small, Fort Bragg is the largest city on the coast between San Francisco and Eureka. The largest employment categories in the City include health care, public education,  local  government,  wholesale  and  retail  trade,  and  tourism.    The  mild  climate  and  picturesque coastline make Fort Bragg a popular tourist and recreational area.

Fort  Bragg  is  a  general  law  city  under  California  state  law  and  its  rights,  powers,  privileges,  authority,  and functions are established through the State constitution. The City operates under the Council‐Manager form of government. The five members of the Fort Bragg City Council are elected by the voters to serve overlapping four‐year  terms.  The Mayor is elected by, and  from,  the City Council  for a  two‐year  term. The City  Council appoints  the  City  Manager  who  serves  at  their  discretion.  The  City  Council  is  a  policy‐setting  body  that  is responsible  for, among other  things, enacting ordinances, adopting  the budget, and appointing committees.

Several boards, commissions, and committees assist the City Council and Administration in carrying out various aspects and functions of city government. The members of the City Council also serve as the governing board for the Fort Bragg Redevelopment Successor Agency and the Fort Bragg Municipal Improvement District No. 1.

The City Manager is responsible for directing and supervising the administration of all departments of the City to  ensure  that  laws,  ordinances,  orders,  resolutions,  contracts,  leases,  and  franchises  are  enforced  and executed, and for appointing all City employees.

The City  provides a wide  range of  services  to its  residents including  public  safety  services,  construction and maintenance  of  streets  and  infrastructure,  water  service,  wastewater  service,  community  development, financial management and administrative services. Special districts, agencies and Joint Power Authorities (JPAs) under the jurisdiction of the City provide services such as wastewater treatment and fire protection throughout the City. Other entities not under the City’s jurisdiction that provide services to the City’s population include the school district, hospital district, recreation district, harbor district, and other special districts.

The annual budget provides a comprehensive statement of the City’s organization, operations and resources and it expresses City Council and Municipal Improvement District Board policies and priorities in all areas of the City’s operations. The budget process is the vehicle through which the City establishes goals and objectives and prioritizes desired programs or services which can be financed by the City’s projected revenue for the budget year. The budget is prepared by fund, function (e.g., public safety), and department (e.g., police). It is the means through which policy decisions are made, effected, controlled and monitored. The City Manager is responsible for  submitting and  recommending an  operating  budget and a  capital improvements  budget  for  City  Council consideration and adoption. Throughout the year,  the budget serves as a  financial management tool and an operational plan for the delivery of City services and capital projects.

In  addition  to  the  budget  planning  process,  the  City  maintains  budgetary  controls.  The  City’s  objective  in maintaining  budgetary  control  is  to  ensure  compliance  with  legal  provisions  embodied  in  the  annual appropriated  budget  approved  by  the  City  Council.  The  City  Manager  is  authorized  to  transfer  budgeted amounts within funds as deemed necessary in order to meet the City’s needs subject to policy defined in the Fiscal Policies of the budget. The City Council may amend the budget by resolution during the fiscal year. ix
The City maintains an encumbrance accounting system as one technique of accomplishing budgetary control.

Purchase orders, contracts, and other commitments for expenditure of money are secured in order to reserve that  portion  of  the  applicable  appropriation.  Total  expenditures  of  each  fund  may  not  exceed  fund appropriations  and  total  expenditures  for  each  department  may  not  exceed  departmental  appropriations.

Encumbrances outstanding at year‐end are reported as committed fund balance. Unencumbered amounts lapse at year‐end and may be appropriated as part of the following year’s budget.

Spending Limitation
Article  XIIIB  of  the  California  Constitution,  also  known  as  the  Gann  spending  limit,  restricts  the  amount  of “proceeds of taxes” California governments may spend. As of June 30, 2021, the City was $4.9 million or 43% under the total Article XIHB (Gann) spending limitation. The City was not impacted by the spending limitation in FY 2020/21.

Citywide Achievements in FY 2020/21
 Closed the fiscal year with a General Fund surplus of $1.5 million or 18% of the expenditures for FY 2020/21.
 Developed and distributed City Evacuation Maps for both permanent residents and visiting tourist in order to prepare for possible emergency situations.
 Implemented new water conservation program and reduced water usage in spring and summer of 2021 by a record 30% in response to state‐wide water drought emergency.  Procured a Desalination‐Reverse Osmosis Treatment System so that the City could continue to pump water from the Noyo River during high tides when salinity levels cannot be processed by the City’s Water Treatment Plant.  Funding for system was provided through emergency state funding.  Incubated a Community Land Trust to facilitate workforce owned housing in Fort Bragg and along the Mendocino Coast.
 Launched Economic Development Incentives and outreach program for the Central Business District.  Issued a Request for Proposals for a Joint City/County Solid Waste Franchise Agreement compliant with new SB 1383 organic recycling and diversion reduction requirements.  Established a Citizens’ Committee to tackle the complex issues surrounding changing the name of Fort Bragg in order to disassociate the City with the Confederate Civil War General, Braxton Bragg.  Initiated a Blue Economy Regional Coalition effort to support sustainable use of ocean resources for economic growth, education, improved livelihoods and jobs, and a healthy marine ecosystem.  Completed a feasibility study on the viability of a municipal broadband utility.  Adopted a Formula Business ordinance to ensure that new businesses to Fort Bragg add to the economic diversity and vitality of the community.
 Developed a strategic pension obligation plan that included issuing Lease Revenue Bonds in November, 2021 and adopting a Pension Funding Policy.
  COVID‐19 related efforts:
o Successful tenant‐based rental assistance program utilizing HOME grant funds.  Assisted more than 60 families.
o Launched COVID utility assistance program.
o Continued with Temporary Waiver to provide businesses with the flexibility to adopt operations to comply with COVID restrictions.
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o Pivoted marketing campaign to focus on local restaurant and retail businesses and encourage residents to purchase locally.
o Developed and launched a marketing campaign strategically messaged to attract visitors from nearby urban areas as the state began reopening from pandemic shutdowns. o Established a business loan and micro‐loan program to provide financial assistance to local businesses hard hit by the pandemic.

Local Economy and Outlook
Fort Bragg’s economy relies heavily on tourism.  Like the overall City’s economy, the City of Fort Bragg is also heavily dependent on tourism for its revenues.  Transient Occupancy Tax (TOT), also known as bed tax, and sales tax are the two largest sources of revenue for the City’s General Fund and in FY 2020/21 together make up 54% of the City’s General Fund revenue.  Prior to the pandemic in FY 2018/19, TOT and sales tax accounted for 46% of the General Fund revenue.

Like most jurisdictions across our nation, the City of Fort Bragg’s tourism economy was essentially shut down in the early months of the pandemic.  The City’s TOT revenue for the last quarter of the prior fiscal year, from April through June, was down 66% compared to the FY 2018/19.  However, as the State and County health orders were eased to allow nonessential travel in the summer of 2020, Fort Bragg experienced a rebound of tourism.

Fort Bragg is within driving distance of San Francisco and Sacramento, so shorter trips by car appear to be a preferred get away during the pandemic. The TOT revenue for first quarter of the fiscal year (July to September) was up 8.4% over the prior year same quarter.  TOT revenue for fiscal year end 2020/21 was 26% higher than FY 2018/19, the best year ever.  The City’s General Fund Bradley Burns sales tax for the fiscal year was up 13% over the prior year.

These trends have continued into the first quarter of FY 2021/22.  TOT revenue receipts for the first quarter of FY 2021/22 are 25% higher  than  first quarter FY 2020‐21 and 35% more  than pre‐pandemic  first quarter FY 19/20.    Sales  tax  revenues  for  the  first  quarter  of  FY  2021/22  are  up  13%  over  first  quarter  of  FY  2020‐21.

However, like this time last year, the pandemic and the frequently changing stay at home orders will likely have the most consequential influence on the local economy into the near future.

As  of  writing  this  letter,  the  Delta  and Omicron  variants  of  COVID‐19  and  the  ramifications  on  the World’s economy continue to make the outlook for Fort Bragg difficult to predict. Like the rest of the country, supply chain issues, vaccination levels, staffing shortages and increased housing costs continue to challenge the local economy.  The City continues to look at opportunities to diversify its economy.  Initiatives, which began in FY 2020/21 and will continue into the FY 2021/22, include economic development incentives for small businesses in the City’s Central Business District (CBD), many of which were considered nonessential and as a result were harder  hit  by  the  pandemic  shutdowns.    The  incentives  include  water  and  sewer  capacity  fee  waivers  for restaurants and  food service,  façade improvement grants, downtown beautification programs, positive code enforcement outreach and programs and events to encourage locals and tourist to visit the CBD.

The Blue Economy Regional Coalition is a focus of the City’s most abundant natural resource – the ocean and coastline.  The initiative is to create new industries that take advantage of the ocean, the local Noyo Harbor, Noyo  Center  for  Marine  Science,  Mendocino  College  education  opportunities,  the  long  standing  fishing industries and ocean resiliency.    Protecting the coastline and ocean also protects the primary draw  for the City’s tourism industry.
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The pandemic highlighted the importance of affordable and reliable broadband to our community and other rural communities across  the nation.  Distance learning, working  from home and new start up industries all struggled  because  of  the  lack  of  sufficient  internet  access.    Fort  Bragg’s  limited  population  and  geographic isolation  creates little incentive for  private sector investment in broadband connectivity.  Completion of the Broadband  Utility  Feasibility  study  provides  a  viable  path  forward  for  a  municipal‐owned  utility  to  offer affordable connectivity to citizens and businesses.  The City received half of its $1.75 million in American Rescue Plan Act (ARPA) funds in June, 2021 and has set aside those funds plus the second half of the monies for the Municipal Broadband project.  The City is also seeking additional funding from other grants and opportunities available as part of the federal and governments’ emphasis on infrastructure and broadband.

Until March, 2020, the City had experienced five years of strong employment trends and low unemployment rates.   Unemployment peaked in April 2020 at 14.4% but stabilized through the FY 2020/21.    As of November, 2021 the unemployment rate for Fort Bragg had dropped to 4.3% and like many areas, Fort Bragg struggles to maintain workforce staffing to operate businesses and other organizations in our region.  The unemployment rate for California was 6.9% as of November, 2021.

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Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
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UNEMPLOYMENT RATE BY MONTH
Fort Bragg California
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The number of homes sold in the Fort Bragg 95437 zip code jumped by 56% in FY 2020‐21 and median home prices increased by 14% for the year end of June 30, 2021.  This appears to be part of a national trend.  The pandemic forced many workers to work from home and employers have increasingly allowed this to become the new norm.  Locally, many of these sales have been made to individuals and families who have moved out of urban areas.  The median home price in June of 2021 in 95437 zip code was $479,000 and by December, 2021 it increased 10% to $525,000.  Under California’s Proposition 13, approved by voters in 1978, assessed property values are only increased when there is new ownership or new construction. Proposition 8, approved after Prop 13 in 1978, allows for property values to be adjusted downward if an owner suffers from a decline in value.

Retroactive and delayed processing of Prop 8 adjustments reduce the impact of increased real estate values in Mendocino County.   The City’s property revenue increased remained flat in FY 2020/21 but is expected to grow in future years as home values are adjusted for the recent increase in price and number of sales.

The growth in residential home sales and prices continues to challenge the affordability of Fort Bragg to working families and individuals.  Like much of California, the scarcity and cost of residential housing makes it difficult and in some cases impossible for many families to have the opportunity of home ownership.  The shortage of affordable workforce housing goes further in limiting local employers’ ability to hire and retain qualified staff.

Every employer listed as principal employers on page 159 of the statistics section, which includes the hospital, medical  clinics  and  school  district,  has  publicly  voiced  the  difficulties  associated  with  lack  of  housing  in maintaining qualified staffing levels.

In an effort to increase workforce housing in our community, the City has incubated and is staffing a Community Land Trust (CLT).  A CLT is system in which the underlying land is owned by a mission‐driven entity, usually a nonprofit, where  the buildings on  the land are owned or leased by  residents. CLTs have  the explicit goal of promoting  affordable  housing  and  contain  legal  provisions  governing  ownership  and  transfer  to  keep  units affordable in perpetuity.  Home ownership provides the opportunity for working families and individuals to build wealth and create housing security.
$‐
$10
$20
$30
$40
$50
$60
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 MEDIAN PRICE FOR HOMES IN 95437
ZIP CODE
(IN THOUSANDS)
xiii
Long‐term Financial Planning
A review of the City’s Fiscal Policies, including Fund Balance & Reserve Policies was conducted as part of the FY 2021/22 budget process.  The City Council continued the commitment to the reserve levels established in prior annual  budget  reviews.  The  following  General  Fund  reserves  comprise  committed  fund  balance;  at  FY  end 2020/21 these reserves total $2,159,716.
 General Fund Operating Reserve:  The City will maintain an unrestricted fund balance of at least 15% to 20% of the annual operating expenditures in the General Fund, as an “Operating Reserve” to ensure liquidity of the General Fund and to ensure adequate cash flow throughout the year. This reserve is necessary to accommodate fluctuations in the timing of expenditures and the receipt of revenues. The reserve is committed fund balance and may be used, with Council authorization, for unforeseen operating or capital needs. At Fiscal Year‐end 2020/21, the reserve remains funded at $1,989,419.
 Litigation Reserve: The City will maintain a $200,000 Litigation Reserve to cover unforeseen legal expenses, including unbudgeted settlement costs that are not covered by the City’s insurance pool.

At Fiscal Year‐end 2020/21, the reserve balance is $200,000.  Recession  Reserve:  The  General  Fund  will  maintain  a  Recession  Reserve  for  the  purpose  of stabilizing the delivery of City services during periods of severe operational budget deficits and to mitigate  the  effects  of  major  unforeseen  changes  in  revenues  and/or  expenditures  as  typically experienced during times of recession.  The fund is established at an amount equivalent to 5% of the City’s annual operating budget.  City Council approval is required before expending any portion of this committed  fund balance. The reserve was established on July 1, 2019 at $489,929 and at Fiscal Year‐end 2020/21, the reserve balance remains at $489,929.

For  the  City,  as  with  governmental  jurisdictions  throughout  the  nation,  continuing  fiscal  challenges  have required a redoubling of efforts to address current and future budget shortfalls while working to prioritize and maintain the level of services that the residents of Fort Bragg have come to expect. Traditional funding sources for  parks,  public  safety,  and  community  development  are  shrinking  or  have  disappeared.  The  immediate challenges continue to be the dissolution of the Redevelopment Agency by the State and major cuts in revenues distributed through federal and State grant programs. Pension costs will continue to challenge the City in the coming years as well.

The City has worked hard  to address its  fiscal challenges and, overall, its efforts have been successful. In FY 2014/15 the City was in position to offer modest salary increases to all of its employee groups for the first time since  the  financial  downturn  of  2008.  Labor  agreements  for  FY  2019/20  thru  FY  2021/22  continued  the moderate cost of living adjustments begun earlier. The Fort Bragg City Council has implemented two policies aimed at the organization’s financial challenges.  Both policies have been described previously and include the newly established “Recession Reserve” and the “Pension funding Policy”.

With hard work, some difficult decisions and fiscal discipline the City Manager and City Council succeeded in passing a balanced FY 2018/19 budget as well as the FY 2019/20 budget.  These were the first balanced budgets in  many  years.    The  tradeoffs  in  balancing  the  budget  include,  a  decrease  in  services  (eliminated  and downgraded positions).  The Other Postemployment Benefits  (OPEB) trust  fund on the other hand has been diligently  pre‐funded  for  several  years  and  even  with  minimum  payments  the  City  appears  poised  to  start drawing from the fund in order to offset increasing costs in the years to come. xiv
Beginning with the FY 2017/18 budget the City’s Finance department has prepared a five year budget forecast for the General Fund. The five year forecast is updated each year prior to the mid‐year budget review meeting.

Beginning  with  the  FY  2019/20  budget  the  five  year  forecast  has  been  incorporated  into  the  main  budget document. The  five year  forecast indicates  that  recent improvements in  tax  revenues will  provide  balanced budgets in the midterm range.  However, in the longer term, the City’s General Fund is projected to operate at a deficit starting in FY 2023/24.

The City’s General Fund operated at a record surplus for FY 2020/21 and fund balance improved by nearly $1.5 million.  The surplus was the result of deep budget cuts early in the pandemic which reduced staff and services and the previously discussed increases in TOT and sales tax revenue as tourism rebounded.  In May, 2020, the City laid off  four  full‐time employees,  froze  two positions in the  Police Department and  furloughed another twelve employees 50% to 75% of their regular hours.  The furloughed staff was returned to full‐time status in August,  2020  but  several  of  the  laid  off  positions  remain  vacant.   In  addition,  the  City  did  not  replace  two positions  (Finance Director and Assistant City Engineer)  that became open in late  June.  As  the  reliance and demand  for City services continues  to grow, one of  the challenges  the City  faces is  the same as many other employers – recruiting and retaining qualified staff.

The City adopted a balanced General Fund budget for FY 2021/22 and projected a small surplus of $47k. While the  surplus  was  small,  the  budget  included  $150k  to  pay  down  pension  obligations  and  relatively  modest revenue  projections.    As  discussed  earlier  in  this  letter,  both  TOT  and  Sales  Tax  revenues  are  outpacing  FY 2020/21, which set records for both revenue sources.

A major  project  for  FY  2020/21 was  developing and adopting a  Pension  Funding  Policy.    Like most  cities  in California, Fort Bragg continues to experience double digit increases in its unfunded liability payments with little or no reduction in the overall unfunded liability.  As reported on page 80, the City’s net pension liability as of June 30, 2021 is at $10.7 million.  On November 10, 2021 the City issued $11.4 million in taxable Lease Revenue Bonds.  Proceeds in the amount of $7.5 million were used to reduce the City’s unfunded pension liability with an additional $3.5 million set aside for costs associated with acquisition of the southern portion of the former Timber Mill property.   The California Public Employees’ Retirement System (CalPERS) recognized a record 21.3% investment return for the fiscal year ending June 30, 2021.  The record CalPERS investment return and the $7.5 million liability payment places the City in a better position to manage pension obligations going forward.

Impact of Fiscal Policies on Financial Statements
The City of Fort Bragg’s fiscal policies are established to ensure that the finances of the City and the Municipal Improvement District No. 1 (collectively referred to as “the City”) are managed in a manner that will:
 Maintain a financially viable local government that provides adequate levels of municipal services to its citizens.
 Provide for financial flexibility in order to adapt to local and regional economic changes.  Preserve and enhance the sound fiscal condition of the City.

The City’s policies are maintained in the annual budget document and are reviewed and approved each year by the City Council.  The policies cover: budgeting, budgetary controls, revenues, expenditures, utility rates, capital budgeting, debt management, interfund loans,  fund balance and  reserves, investments, accounting auditing and  financial  reporting, asset  forfeiture expenditures, employment compensation, cost allocations, and debt service. The City’s fiscal policies are extensive and followed diligently so that it can be safely said that all of the policies have had a significant impact on the current period’s financial statements. In some years certain fiscal policies may stand out as having a more significant impact on the financial statements while in other years (such as the current reporting period) they may have a relatively equal impact. xv
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2020. This was the ninth year in a row that the City of Fort Bragg has achieved this prestigious award. In order  to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A  Certificate  of  Achievement  is  valid  for  a  period  of  one  year  only.  We  believe  that  our  current  Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program’s requirements and it will be submitted to the GFOA to determine its eligibility for another certificate.

Acknowledgements
Preparation of this Annual Comprehensive Financial Report could not have been accomplished on a timely basis without the support and cooperation of many members of the City of Fort Bragg staff. Special recognition is given to the Finance Department staff, especially Assistant Finance Director, Isaac Whippy, who has stepped up to fill the gaps left when the Finance Director position was frozen. Their efforts made it possible to continue to provide  quality  financial  information  for  the  citizens,  the  City  Council,  and  other  users  on  a  timely  basis.

Appreciation is also expressed to the Mayor and the City Council for their attentiveness and support in planning and conducting the financial activities of the City in a responsible and responsive manner.

I have had the opportunity to serve Fort Bragg as City Manager for nearly four years.  It has been an opportunity and a great pleasure.  I would like to thank Fort Bragg residents and businesses for making this community a unique treasure along the beautiful Mendocino Coast.

Respectfully submitted,
Tabatha Miller, CPA
City Manager
Isaac Whippy
Assistant Finance Director
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Organization Chart
xvi

Current City Council members and the dates upon which their respective terms expire are as follows:

Mayor Bernie Norvell          December 2024
Vice Mayor Jessica Morsell‐Haye      December 2022
Councilmember Tess Albin‐Smith      December 2022
Councilmember Lindy Peters        December 2022
Councilmember Marcia Rafanan      December 2022
RESIDENTS OF CITY OF FORT BRAGG
CITY COUNCIL
City Council
Committees
Planning
Commission
ADMIN

SERVICES
PUBLIC
WORKS

FINANCE
Bernie
Norvell
Mayor

COMMUNITY
DEV’PMT   POLICE
CITY

ATTORNEY
Jessica
Morsell‐ Haye
Vice ‐Mayor
CITY

MANAGER
Lindy Peters
Councilmember
Marcia Rafanan
Councilmember
Tess Albin‐Smith
Councilmember
xvii
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FINANCIAL SECTION
 Independent Auditor’s Report
 Management’s Discussion and Analysis
 Basic Financial Statements
 Notes to the Basic Financial Statements
 Required Supplementary Information
 Combining and Individual Fund Statements and Schedules This page intentionally left blank.
7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City
Council City of Fort Bragg
Fort Bragg, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, the aggregate remaining fund information, and the budgetary comparison information of the City of Fort Bragg, California (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

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

Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

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

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

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

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

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 3–19, the Schedule of Changes in Net OPEB Liability and Related Ratios on page 94, the Net OPEB Liability Schedule Contributions on page 95, the Pension Plan Schedule of Contributions on pages 96-97, and the Schedules of the City’s Proportionate Share of the Net Pension Liability on pages 98–99, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other 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 combining and individual nonmajor fund financial statements and the introductory section and statistical sections are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

The introductory section and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 29, 2021 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 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 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.
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December 29, 2021 JJACPA, Inc.

Dublin, CA
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Management’s Discussion and Analysis
3 This section provides a narrative overview and analysis of the financial activities of the City of Fort Bragg (City) for the fiscal year ended June 30, 2021. It should be read in conjunction with the accompanying transmittal letter and basic financial statements.

FINANCIAL HIGHLIGHTS
 The City's Net Position increased by $5.4 million (assets exceeded liabilities) to $99.2 million as of June 30, 2021.
 The Net Position for governmental activities ended the year at $40.5 million, while the net position for business activities was $58.8 million. Of the $40.5 million in total governmental net position, a negative $4  million  is  characterized  as  unrestricted  net  position.  In  FY  2016,  GASB  68  required  all  cities  to recognize their pension liability as a deficit in unrestricted net position on their financial statements.  General Fund revenues rebounded in Fiscal year 2020‐21. Transient Occupancy Tax (TOT) recorded its best year to date at $3.3 million and Sales tax at $3.1 million.  General  Fund  expenditures  came  in  at  $9.2  million,  $830k  below  budget  estimates.  The  positive variance is a result of significant budget cuts early in the pandemic which reduced staff and services.  The City’s General Fund operated at a record surplus for FY 2020/21 and fund balance improved by nearly $1.5 million.
 The City's governmental funds reported a combined fund balance of $7.7 million, a increase of $1.9 million compared to the prior fiscal year. Committed balances include an Operating Reserve of $1.9 million,  a  Recession  Reserve  of  $489,929,  and  a  Litigation  Reserve  of  $200,000.  Unassigned  fund balance increased to $1.5 million.
 The  Water  enterprise  Net  Position  increased  $1.9  million  (16%),  the  Wastewater  enterprise  Net Position  increased by $2 million (9%), and the C.V. Starr Center Net Position also increased by $145k (1%). The most significant draw on C.V. Starr Center Net Position is  the non‐cash item depreciation ($698k).
 Business activities saw revenue for charges of services rebound to pre‐covid levels after experiencing a dip during the onset of the pandemic. Revenues increased by $493k (16%) for water enterprise, $413k for wastewater enterprise except for the CV Starr which remained closed due to COVID restrictions in fiscal year 20/21.
 Total liabilities increased by $1.1 million to $23.4 million during the FY 2020/21.  Deferred inflows and  outflows  related  to  the  City's  unfunded accrued  pension liabilities  (UAL) with CalPERS  changed  from  the  prior  year  due  to  gains  and  losses  recognized  by  CalPERS,  including contributions made by the City.

OVERVIEW OF THE ANNUAL FINANCIAL REPORT
This Annual Comprehensive Financial Report is in three major parts:
1) Introductory section, which includes the Transmittal Letter and general information; and, 2)
3) Financial section, which includes the Management’s Discussion and Analysis (this part), the Basic Financial Statements, which include the Government‐wide and the Fund Financial Statements along with the notes to these financial statements, and Combining and Individual Fund Financial Statements and Schedules. 4) Statistical  section,  which  includes  detailed  information  as  a  context  for  understanding  what  the information in the financial statements, and footnotes says about the City's overall financial health City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Management’s Discussion and Analysis
4 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
The Basic Financial Statements
The Basic Financial Statements are comprised of the Government‐wide Financial Statements and the Fund Financial Statements; these two sets of financial statements provide two different views of the City’s financial activities and financial position.

Government‐wide Financial Statements
The Government‐wide Financial Statements provide a broad overview of the City’s activities as a whole and comprise the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information about the financial position of the City as a whole, including all of its capital assets and long‐term liabilities on the full accrual basis, similar to that used by corporations. The Statement of Activities provides information about all the City’s revenues and all its expenses, also on the full accrual basis, with the emphasis on measuring net revenues or expenses of each the City’s programs. The Statement of Activities explains in detail the change in Net Position for the year.

All of the City’s activities are grouped into Governmental Activities and Business‐type activities, as explained below. All the amounts in the Statement of Net position and the Statement of Activities are separated into Governmental Activities and Business‐type Activities in order to provide a summary of these two activities of the City as a whole.
♦ Governmental activities – All of the City’s basic services are considered to be governmental activities, including general government, community development, public safety, public works and administration.

These services are supported by general City revenues such as taxes and by specific program revenues such as developer fees.
♦ Business‐type activities – All the City’s enterprise activities are reported here, including Water, Wastewater (Sewer), and the C.V. Starr Community Center. Unlike governmental services, these services are supported by charges paid by users based on the amount of the service they use.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance‐related legal requirements. All of the funds of the City may be divided into two categories: governmental funds and proprietary funds.

Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the Government‐wide Financial Statements. However, unlike the Government‐ wide Financial Statements, Governmental Fund Financial Statements focus on 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.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Management’s Discussion and Analysis
5 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Because the focus of the Governmental Fund Financial Statements is narrower than that of the Government‐ wide Financial Statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the Government‐wide Financial Statement. By doing so, readers may better understand the long‐term impact of the government’s near‐term financial decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Governmental Fund Financial Statements provide detailed information about each of the City’s most significant funds, called major funds. The concept of major funds, and the determination of which are major funds, was established by GASB Statement No. 34 and replaces the concept of combining like funds and presenting them as one total. Instead, each major fund is presented individually, with all non‐major funds summarized and presented only in a single column.

Subordinate schedules present the detail of these non‐major funds. Major funds present the major activities of the City for the year, and may change from year to year as a result of changes in the pattern of the City’s activities.

For the fiscal year ended June 30, 2021, the City’s major funds are as follows:

GOVERNMENTAL FUNDS:
 General Fund
 CDBG Program Income Special Revenue
 Housing Successor Agency Special Revenue
 Street Sales Tax Special Revenue
 Street Resurfacing Capital Projects
For the fiscal year ended June 30, 2021, the City adopted annual appropriated budgets for all funds.

Budgetary comparison schedules have been provided for the general fund and major governmental funds to demonstrate compliance with this budget and may be found on beginning on page 36.

Proprietary funds. The City maintains enterprise‐type and Internal Service proprietary funds. enterprise funds are used to report the same functions presented as business‐type activities in the Government‐wide Financial Statements. The City uses enterprise funds to account for Water, Wastewater, and C.V. Starr Center activities.

Internal service funds are an accounting methodology used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its building maintenance, information technology assets, and its fleet of vehicles. 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 all of these operations.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Management’s Discussion and Analysis
6 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Fund Financial Statements, Continued
ENTERPRISE‐TYPE FUNDS:
 Water enterprise Fund
 Wastewater enterprise Fund
 CV Starr Center enterprise Fund
Notes to the Basic 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 may be found on pages 49‐92 of this report. Required Supplementary Information follows the notes on page 94.

Combining and Individual Fund Financial Statements and Schedules The combining statements referred to earlier in connection with non‐major governmental funds are presented on pages 103‐123 of this report.  Combining statements for internal services funds are presented on pages 125‐127.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Management’s Discussion and Analysis
7 GOVERNMENT‐WIDE FINANCIAL ANALYSIS
Net position may serve over time as a useful indicator of a government's financial position. The following table represents a comparative analysis of governmental and business‐type activities' net assets as of June 30, 2021, and June 30, 2020.

Govern‐ Business‐ Govern‐ Business‐
mental type mental type
Activities Activities Total Activities Activities Total Current and other assets 12,021,612 $    14,351,190 $    26,372,802 $    9,698,369 $      12,024,984 $    21,723,353 $ Noncurrent assets 41,685,886       52,286,470       93,972,356       42,101,657       52,267,148       94,368,805 Total assets 53,707,498       66,637,660       120,345,158     51,800,026       64,292,132       116,092,158 Deferred outflows of resources 2,515,812          473,927             2,989,739          2,766,120          367,749             3,133,869 Total assets and deferred outflows of
resources 56,223,310       67,111,587       123,334,897     54,566,146       64,659,881       119,226,027 Current and other liabilities 1,271,585          1,195,532          2,467,117          903,403             2,527,218          3,430,621 Long‐term liabilities 13,926,679       7,055,787          20,982,466       13,720,717       7,444,451          21,165,168 Total liabilities 15,198,264       8,251,319          23,449,583       14,624,120       9,971,669          24,595,789 Deferred inflows of resources 531,965             143,822             675,787             944,482             68,411               1,012,893 Total liabilities and deferred  inflows of
resources       8,395,141 15,730,229          24,125,370       15,568,602       10,040,080       25,608,682 Net position:

Net investment in
Capital Assets 41,685,886       46,331,468       88,017,354       42,101,657       45,807,368       87,909,025 Restricted 2,947,301          108,064             3,055,365          1,921,632          108,064             2,029,696 Unrestricted (deficit) (4,140,106)        12,276,914       8,136,808          (5,025,745)        8,704,369          3,678,624 Total net position $    58,716,446 40,493,081 $    99,209,527 $    38,997,544 $    54,619,801 $    93,617,345 $ 2021 2020
Summary of Net Position
As of June 30, 2021, the City's net position was $99.2 million, an increase of $5.6 million. Year over year, assets increased by $4.3 million, and liabilities decreased by $1.1 million with no new debt issued. The overall change in net position is largely due to the increase in investment in capital assets for both Governmental and business‐type activities, which increased by $4.6 million. The revenue and expense factors contributing to the year‐over‐year performance increase are discussed in further detail in this report's ensuing sections.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Management’s Discussion and Analysis
8 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, continued
A large portion (94%) of the City of Fort Bragg's net position reflects its investment in capital assets (e.g., land, easements, buildings, machinery, and infrastructure), less related outstanding debt used to acquire those assets. The City uses these capital assets to provide various services to its citizens; consequently, these assets are not available for future spending. The balance in net investment in capital assets decreased in FY 2020/21 by $396k to a total of $93 million. The decrease is attributed to retiring capital assets, particularly in the business type, by $531k. Citywide total assets placed in Service equaled $20.6 million, in which $17.7 million was a transfer from Construction in Progress to Infrastructure for the wastewater treatment plant. This was offset by $3.2 million in depreciation and a net decrease in related debt of $484k.

The restricted net position of $3 million primarily comprises revenues held for expenditure for specified purposes (special revenue) and amounts held for debt service. Examples of special revenues are street sales tax and Community Development Block Grants (CDBG) program income. The overall restricted net position increased year over year by approximately $1 million. It ended the fiscal year with a $3 million balance primarily due to the accumulation of special sales tax funds of $2.5 million, a 59% increase from the prior year.

The Unrestricted net position increased $4.4 million over the previous year and now stands at $8.1 million.

Governmental activities saw a decrease of $886k in unrestricted net position, whereas business‐type activities saw an increase of $3.8 million. The negative unrestricted position of $4.1 million for governmental activities includes cash and cash equivalents. It may be used to meet the City's ongoing obligations to citizens, creditors and City imposed designations (reserves, litigations, contingencies, and revenue programs). It is negative primarily due to the City's long‐term obligations related to net pension liabilities. The City's working capital to meet current operating and capital concerns are $23.9 million.

Deferred outflows are defined as a government's net position consumption that applies to a future reporting period. Although not entirely the same, deferred outflows are similar in nature to assets. The City currently has three deferred outflows: deferred losses on debt refunding, a deferred outflow related to reporting or the City's OPEB liability, and a deferred outflow pertaining to reporting the City's pension plan liability. The City's deferred outflows increased by $144k or 5% on a year‐over‐year basis.

Deferred inflows are defined as an acquisition of a net position by a government applicable to a  future reporting period. Although not entirely the same, deferred inflows are similar in nature to liabilities. The City currently has two deferred inflows: a deferred inflow related to reporting or the City's OPEB liability and a deferred inflow pertaining to reporting of the City's pension plan liability. The City's deferred inflows decreased by $337k or 33% on a year‐over‐year basis.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Management’s Discussion and Analysis
9 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
The change in net position for the fiscal years ended June 30, 2021, and 2020, follows:

Govern‐ Business‐ Govern‐ Business‐
mental type mental type
Activities Activities Total Activities Activities Total Revenues:

Program revenues:

Charges for services 2,813,140 $                   7,677,502 $             10,490,642 $                 3,150,327 $                   7,130,393 $             10,280,720 $ Grants and contributions:

Operating 3,973,620                       ‐                                3,973,620                       800,090                          ‐                                800,090 Capital 1,584,476                       ‐                                1,584,476                       1,344,933                       4,512,326                5,857,259 General revenues:

Property taxes and assessments 1,151,947                       262,787                   1,414,734                       1,156,765                       236,185                   1,392,950 Sales and use tax 3,127,059                       1,099,510                4,226,569                       2,742,568                       944,770                   3,687,338 Transient occupancy taxes 3,321,928                       ‐                                3,321,928                       2,204,151                       ‐                                2,204,151 Other taxes 810,652                          ‐                                810,652                          774,924                          ‐                                774,924 Use of money and property 112,479                          115,440                   227,919                          107,090                          178,095                   285,185 Unrealized gains and losses (123,967)                         ‐                                (123,967)                         228,487                          ‐                                228,487 Other general 265,673                          ‐                                265,673                          23,558                            95,356                     118,914 Total revenues 17,037,007                    9,155,239                26,192,246                    12,532,893                    13,097,125              25,630,018 Expenses:

Governmental activities:

General government 3,580,513                       ‐                                3,580,513                       2,622,995                       ‐                                2,622,995 Public safety 4,588,899                       ‐                                4,588,899                       5,374,187                       ‐                                5,374,187 Public works 2,235,827                       ‐                                2,235,827                       3,122,039                       ‐                                3,122,039 Community development 4,104,663                       ‐                                4,104,663                       875,959                          ‐                                875,959 Marketing and promotion 93,060                            93,060                            185,621                          185,621 Interest and fiscal charges 37,964                            ‐                                37,964                            5,106                              ‐                                5,106 Business‐type activities:

Water ‐                                       1,687,603                1,687,603                       ‐                                       1,675,501                1,675,501 Wastewater ‐                                       3,043,007                3,043,007                       ‐                                       2,302,137                2,302,137 C.V. Starr Center ‐                                       1,228,892                1,228,892                       ‐                                       2,080,808                2,080,808 Total expenses 14,640,926                    5,959,502                20,600,428                    12,185,907                    6,058,446                18,244,353 Excess (Deficiency) of revenues over
expenditures before transfers 2,396,081                       3,195,737                5,591,818                       346,986                          7,038,679                7,385,665 Transfers (900,908)                         900,908                   ‐                                       (1,573,283)                     1,573,283                ‐ Change in net position 1,495,173                       4,096,645                5,591,818                       (1,226,297)                     8,611,962                7,385,665 Net position:

Beginning of year 38,997,544                    54,619,801              93,617,345                    40,223,841                    46,007,839              86,231,680 End of year 40,492,717 $                 58,716,446 $          99,209,163 $                 38,997,544 $                 54,619,801 $          93,617,345 $ 2021 2020
Changes in Net Position
The City's expenses for FY 20/21 totaled $20.6 million, increasing $2.3 million from FY 19/20 totals. Much of this increase was related to restoring staff and other programs (return of furloughed employees), which were cut at the end of FY 19/20.

Governmental expenses totaled nearly $14.6 million, or 71 percent of total costs. Public safety costs represented most governmental costs, Community Development related to Grants, followed by public works and general government. Business‐type activities incurred $5.9 million during the fiscal year, 29 percent of all City expenses.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Management’s Discussion and Analysis
10 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Revenues
The City's total revenues for Governmental and Business‐type Activities were $26.1 million for the fiscal year ended June 30, 2021, representing a 15 percent increase over the previous fiscal year. Governmental Activities increased by $4.5 million, and Business‐type Activities decreased by $3.9 million. Significant revenues for the City for FY 2020/21 were derived from charges for services (40%), grants and contributions (21%), sales and use Tax (16%), transient occupancy tax (12%), and property tax (1%).

Following is a discussion of variances in key revenues for the FY 2020/21:

1. Charges for Service's overall revenue increased by 2 percent compared to the previous fiscal year.

Charges for governmental activities were down $337k or 11 percent. These services are mostly salary, benefit, overhead charges to the Business‐type Activities, interfund reimbursements, and charges to various grants for staff time and administrative costs reimbursements.

Cost allocation plan revenues decreased year over year, attributed to the new cost allocation plan's recalculation, which reduces the allocation to the general fund. Reimbursement for Community Service Officer (CSO) and Asset Forfeiture expenditures also decreased due to reduced funding available. Other charges for services, including Police Department fingerprinting, developer deposit (DDA) reimbursements, code enforcement, building permits, also recorded declines from the prior year.

Charges for services for Business‐type activities are almost entirely of user charges. This category was up $547k or 8 percent primarily due to revenues rebounding to pre‐COVID levels. Covid restrictions during the last quarter of the FY 2019/20 affected this revenue category. Many businesses were forced to close or reduce operations and, as a result, caused a reduction in water consumption for many top commercial account users.

Charges for
Services
Grants &
Contributions
Sales and Use
Tax
Transient
Occupancy Tax Property Tax
2021 10,491 5,558 4,227 3,322 1,415
2020 10,280 6,657 3,687 2,204 1,393
0 2,000
4,000
6,000
8,000
10,000
12,000
In Thousands
Significant Revenue Sources
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Management’s Discussion and Analysis
11 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued

2. Grants and  Contributions annual  receipts  for Operating Grants  decreased  by  $1.09 million. Grants include  Community  Development  Block  Grants  (CDBG),  which  consists  of  the  Code  enforcement program,  Business  Assistant  Loan  Program,  Fire  Station  Design  Rehab,  Utility  Business  Assistance Loans,  and  general  administration.  Often  operating  grants  fluctuate  yearly  depending  on  when program activities are implemented. The most significant capital grants in FY 19/20 were the  California State  Water  Resources  Control  Board  grant  ($4.5M)  and  the  US  Department  of  Agriculture  grant ($1.3M).  These  grants  provided  funding  for  the  City's  wastewater  treatment  facility  upgrade, completed and expended last fiscal year.

3. Sales and Use Tax Sales tax include the City's general sales tax, a special half‐cent sales tax for the C.V Starr Center, and a special half‐cent sales tax for street repairs. Despite the  COVID Pandemic, sales tax revenues recorded solid results and were up $539k or 15 percent compared to the prior year.

Construction, grocery stores, and internet sales categories all recorded best quarters at the onset of the pandemic. Other categories such as restaurants, transportation, and retail were the most hit by COVID restrictions rebounded during the fiscal year as vaccines rolled out and other COVID restrictions were lifted. Sales and use taxes increased by $201k or 6 percent. Sales and use taxes for Business‐type Activities are received for the C.V. Starr Center special sales tax ($1.09 million), up 16 percent or $154k from the previous fiscal year. The Tax is used to subsidize the operations and capital needs of the Center.

4. Transient Occupancy Tax (TOT)  is a local tax (12 percent) applied to the cost of the hotel or other lodging stays of less than 30 days. This revenue category was the most impacted due to the COVID pandemic in the last quarter of FY 19/20, down $436k or 17 percent compared to the prior year resulting in a General Fund deficit. In FY 20/21, TOT revenues rebounded and recorded its best year to date at $3.3 million, increasing $1.1 million or 51 percent from the prior year. International and domestic travel restrictions contributed to the strong results and the Visit Fort Bragg marketing efforts that continued during the Pandemic.

5. Property Tax increased by 2% in FY 2020/21 and is expected to grow at similar modest increases of 2‐3% per year due to the rise in the home for sale prices. The median home price in June of 2021 in the 95437 zip code was $419,000, an increase of 5% over June of 2020. Property taxes received are accounted for in the General Fund $1.2 million, C.V Starr Center $262k, and the Fire Equipment Fund $54k.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Management’s Discussion and Analysis
12 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Revenues by source for the fiscal years ended June 30, 2021, and 2020, are as follows:

Charges
for
Services
Capital
Grants
Sales &
Use Tax
Transient
Occupanc
y Tax
Operating
Grants
Property
Taxes
Other
Taxes
Interest &
other
2021 2,813 1,584 3,127 3,322 3,974 1,152 811 112
2020 3,150 1,345 2,743 2,204 800 1,157 775 107
0 500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
In Thousands
Revenue ‐ Governmental Activities
Charges for
Services Capital Grants Sales & Use Tax Property Taxes Interest & other 2021 7,678 0 1,100 263 115
2020 7,130 4,512 945 236 273
0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
In Thousands
Revenue ‐ Business‐type Activities
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Management’s Discussion and Analysis
13 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Expenses
The City's governmental and Business‐type Activity expenses for FY 2020/21 totaled $20 million, representing a 14 percent increase compared to the previous fiscal year. Governmental Activity expenses were $14.6 million or 67 percent of total expenses, while Business‐type Activities were $6 million or 33 percent of total expenses. Public safety costs represented 22 percent of citywide costs, followed by Community Development which includes Grants at 20 percent, General government at 17 percent, Wastewater at 14 percent, and Public Works at 17 percent.

Following is a discussion of significant variances in key expense categories for the fiscal year 2020/2021:

1. Public Safety costs decreased by $785k or 15 percent from the previous fiscal year. The decrease is mainly attributed to personnel costs by freezing two positions, voluntary pay reductions by sworn officers, and layoffs in response to the pandemic.

Public safety costs are expected to increase noticeably in the next fiscal year. In addition to the cost of living adjustments, rising pension costs, and substantial overtime work, each January, the City (City Ordinance 672)  is  required  to  perform a  Police Department  salary  survey and adjust  salaries if  the  City's  current salaries are not at least the average of the surveyed jurisdictions. The survey analyzes comparable positions in the City of Willits, Ukiah, and the Mendocino County Sheriff's Office. The City anticipates additional salary increases provided by the County Sheriff's, City of Ukiah, and the City of Willits for their law enforcement employees. Law enforcement positions nationwide have become much more competitive and difficult to recruit for in the last several years. One of the department's top operating expenses, Dispatch services, will also increase 5 percent or $33k annually.

Public Safety Public Works General
Government
Community
Development
Marketing
and
promotion
Interest and
Fiscal Charges
2021 4,589 2,236 3,580 4,105 93 38
2020 5,372 3,122 2,623 876 186 5
0 1,000
2,000
3,000
4,000
5,000
6,000
In Thousands
Expenses ‐ Governmental Activities
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Management’s Discussion and Analysis
14 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Expenses, Continued

2. Public Works  year‐over‐year  expenses  decreased  by  $886k  or  28  percent.  The  decrease  is  due  to  the elimination of a position upon the retirement of the Public Works Director at the end of the last fiscal year and the layoff of two maintenance workers in response to the pandemic. Additionally, the Special Projects Assistant position was previously accounted for in the Public works budget. Due to reorganization, these costs were moved to the Finance department (General government).

3. General  Government  expenses  increased  by  $957k  or  37  percent.  The  increase  is  attributed  to  the reorganization  of  the  Special  Project  Assistant  position  and  Housing  and  Economic  Development Coordinator  position  from  Public  works.  Additionally,  retiree  medical  costs  ($61k)  and  Insurance  costs ($99k) with REMIF also recorded increases compared to the previous year.

Additionally, in FY 2019/20, the City started making the minimum prepayment towards the OPEB trust. This caused a $210k positive year‐over‐year variance. The OPEB trust fund has been diligently pre‐funded for years, and even with the recent change in minimum payments, the City has the option to start drawing from the fund to offset increasing costs in the years to come.

4. Community Development expenses increased by $3.2 million from the prior year. Due to the increase in Grants  activity,  $3.04  million  HEAP  Grant,    SB‐2  Grants  $46k,  Community  Development  Block  Grants (CDBG).

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Management’s Discussion and Analysis
15 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Expenses, Continued
Following is a discussion of significant variances in key business‐type expense categories for the FY 2020/21:

1. Wastewater  enterprise  expenses  increased  by  $740k  or  32  percent.  The  in‐service  of  the  newly completed Wastewater Treatment  Plant increased  the  depreciation expense  of  the  fund  by  $512k.

Additionally, Insurance premiums of $53k, disposal of assets no longer in use of $91k, and an increase in personnel expenditures of $58k contributed to the year‐over‐year increases.

2. C.V. Starr Center expenses decreased by $851k or 41 percent. The CV Starr center was closed in mid‐ March 2020 in compliance with Shelter‐In‐Place orders in  response  to COVID. All but essential core staff were transitioned from furlough to layoff status in early May. The Center remained closed through the fourth quarter of the FY 2020/21. As a result, both personnel $597k and other operating costs of $272k recorded savings compared to the previous year. With lifting some of the COVID restrictions and the challengers with hiring back Staff in FY 21/22, the Center has reopened on a limited basis.

3. Water  enterprise  expenses  increased  by  $12k  or  1  percent,  with  increases  in  personnel  costs  and administration allocation, offset by savings in Utilities, professional services, Repairs, and maintenance.

Wastewater Enterprise C.V. Starr Center Water Enterprise 2021 3,043 1,229 1,688
2020 2,302 2,081 1,676
0 500
1,000
1,500
2,000
2,500
3,000
3,500
In Thousands
Expense ‐ Business‐Type Activities
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Management’s Discussion and Analysis
16 Net Program Costs
The following table shows each of the City's major programs and the programs' net cost.  Net cost is the total cost less fees and other direct revenue generated by the activities. The net cost reflects the financial burden placed on the City's taxpayers by each of the programs. The total cost of services and the net cost of services for the fiscal years ended June 30, 2021, and 2020 are as follows:

Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government $       2,089,303 3,508,168 $      2,622,995 $       1,511,471 $ Public safety          4,259,585 4,588,899         5,374,187          5,075,116 Public works          (769,768) 2,224,098           3,122,039          (579,485) Community development          531,267 4,160,458            875,959              692,728 Marketing and promotions                93,060 93,060              185,621              185,621 Interest and fiscal charges                37,964 37,964              5,106                  5,106 Total 14,612,647 $     6,241,411 $      12,185,907 $     6,890,557 $ 2021 2020
FUND FINANCIAL ANALYSIS
The City of Fort Bragg uses fund accounting to ensure and demonstrate compliance with finance‐related legal requirements. The fund financial statements focus on individual parts of the City government, reporting the City's operations in more detail than the government‐wide financial statements.

Governmental funds
The City's governmental funds provide information on near‐term inflows, outflows, and balances of spending resources. At the fiscal year ended June 30, 2021, the City's governmental funds reported combined fund balances of $7.7 million, an increase of $1.9 million or 34 percent over the previous year.

General Fund
The general fund is the chief operating fund of the City. Overall, the general fund balance increased by $1.49 million to $4.2 million at the end of FY 2020/21. General fund unassigned fund balance totaled $2 million.

This increase of $1.5 million results from a realized surplus budget of $1.5 million. The committed fund balance totals $2.2 million. It includes the operating reserve of $1.5 million, $200k in the litigation reserve, and the $490k in the Recession Reserve established this fiscal year.

Special Sales Tax – Streets
The Special Sales Tax for the street repairs fund increased $923k to $2.5 million in FY 2020/21. The Maple Street $1.8 million and Street Rehabilitation $2 million will be funded and undertaken in FY 2021/22.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Management’s Discussion and Analysis
17 FUND FINANCIAL ANALYSIS, Continued
Street Resurfacing Capital Projects
The Street Resurfacing Capital Projects fund is at zero. Funding is transferred from the Special Sales Tax for street repairs fund to the Street Resurfacing Capital Projects as projects are undertaken. Although funding was transferred and the FY 2018/19 Street Resurfacing project kicked off late in FY 2018/19, work will be completed in the current fiscal year.

Enterprise Funds
Enterprise funds increased the City's net position by $4 million. The City has three business‐type activities:

Water, Wastewater, and the C.V. Starr Center.

The Water enterprise net position increased $1.9 million or 16 percent to $13.6 million; the Wastewater enterprise net position increased $2 million or 9 percent to $24.4 million. The C.V. Starr Center enterprise net position also increased by 145k or 1 percent to $20.7 million.

The Water enterprise capitalized costs of $547k. Additionally, accounts payable decreased by $49k while long‐term liabilities decreased by $586k due to regularly scheduled debt payments. Lastly, Water operating revenues exceeded operating expenses by $2 million, contributing to the fund's net position. The utility generates sufficient revenue to cover operating expenses, maintain an operating reserve, and fund a capital reserve. Currently, the rate plan is designed to accumulate $1 million per year in a capital projects reserve, and the plan is working as designed.

The Wastewater enterprise completed the project to replace the aging wastewater treatment plant. The project cost $19.1 million and successfully came online in late March 2021. In FY 2020/21, $19.1 million of expenses were capitalized, and $439k of assets were disposed of as they were no longer in use. Accounts payable decreased by $1.3 million after the retention payment for the wastewater treatment plant project.

Current assets, particularly accounts receivable, declined by $622k due to the Wastewater Treatment Plant project being partially funded by reimbursement grants. The funds were received in this fiscal year. The Wastewater enterprise also realized $1.07 million in net income, which contributed to its net position growth.

The utility's user fees generate sufficient revenue to cover operating expenses, maintain an operating reserve and fund a capital reserve. Similar to the Water enterprise, the rate plan is designed to accumulate $1M per year in a capital project reserve, and the plan is working as designed.

The C. V. Starr Center's operation is contracted to the Mendocino Coast Recreation and Park District and is supported by property tax, sales tax, and user fees. The C.V. Starr Center's operating expenses exceeded operating revenue (user fees) by $1.2 million. The operating loss is subsidized with non‐operating revenue, including the tax revenue mentioned above, with the resulting change in Net Position increasing by $145k. As mentioned previously, the Center was closed in March 2021 to comply with shelter in place orders and has opened on a limited basis in the fiscal year 2021‐22.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Management’s Discussion and Analysis
18 General Fund Budgetary Highlights
A comparison of Budget to actual for major governmental funds is presented in the fund financial statements.

These statements and the notes are presented as additional information to show that appropriations are being spent as authorized by the City Council.

The original Budget estimated $7.9 million in revenues. The amended Budget was $9.5 million, and actual revenues of $9.8 million ended the fiscal year above budget estimates by $287k. The General Fund was the most impacted by the COVID Pandemic and economic shutdown in the last quarter of 2019/20. This is because it relies on TOT and Sales Tax Revenues, accounting for approximately 48 percent of the City's General Fund revenue. Both transient occupancy tax and sales tax recovered in fiscal year 20‐21 and ended with strong results.

Expenditures were held below the final amended Budget of $9.1 million by $830k, with savings across many categories primarily due to the COVID‐19 budget reduction plan approved by the Council in April 2021, which included an annualized decrease to General Fund expenditures of $1.4 million to offset the projected revenue shortfalls. These included Layoffs, furloughs, freezing open positions, and placing a hold on AA/AB funding. As revenues rebounded in the first quarter of the fiscal year, staff were brought back, and some positions were re‐hired during the course of the fiscal year.

The City of Fort Bragg Fund Balance and Reserve Policies, adopted by the City Council and incorporated in the Budget development policies, established an Operating Reserve ($1.5 million) of at least 15‐25 percent of the annual operating expenditures General Fund. Its purpose is to serve as a strategic reserve, ensure the General Fund's liquidity, and make adequate resources available to manage economic uncertainties. Additionally, the recession reserve of $489k, equivalent to 5 percent of the City's annual operating Budget, and the Litigation reserve remains at $200k.

The General Fund ended the year with a fund balance (of non‐spendable, committed, and unassigned amounts) of $4.1 million, representing an increase of $1.5 million for the year.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2021
Management’s Discussion and Analysis
19 Capital Assets
The City's investment in capital assets for its Governmental and Business‐type Activities as of June 30, 2021, amounts to $93.9 million. This investment in capital assets includes land, construction in progress costs, buildings, machinery and equipment, infrastructure, and land improvements as shown in the chart below:
2021 2020 2021 2020 2021 2020
Land 12,952,262 $      12,952,262 $      785,079 $            785,079 $            13,737,341 $      13,737,341 $ Construction in progress 2,536,221            2,291,055            933,150               18,118,805          3,469,371            20,409,860 Buildings 1,281,003            1,390,995            20,441,570          21,154,828          21,722,573          22,545,823 Machinery, equipment and vehicl 1,308,114            723,605               1,423,349            1,634,560            2,731,463            2,358,165 Infrastructure 23,608,286          24,743,740          28,653,610          10,469,934          52,261,896          35,213,674 Land improvements ‐                            ‐                            49,712                 103,942               49,712                 103,942 Total 41,685,886 $      42,101,657 $      52,286,470 $      52,267,148 $      93,972,356 $      94,368,805 $ Governmental Activities Totals Business‐type Activities There was a decrease in capital assets of approximately $396k (net of annual depreciation costs). Most notably,  Fleet equipment $672k, and disposal of assets $468k from the wastewater fund. Citywide total assets placed in Service equaled $2.9 million, offset by $3.2 million in depreciation. More detail of the capital assets and current activity may be found in the notes to the financial statements in the Summary of Significant Accounting Policies on page 55 and in Note 5 on Page 68 in the Capital Assets section.

Debt Administration
On June 30, 2021, the total City debt outstanding was $8 million. Overall, governmental debt decreased by $1 million to $1.6 million due to normally required payments, and Business‐type debt was also reduced by $484k to $6.4 million. Additional information about the City's outstanding debt and other long‐term liabilities is presented in Note 7 on pages 70 through 73.

Requests for Information
This financial report is designed to provide our citizens, taxpayers, creditors and government regulators with a general overview of the City’s finances and to demonstrate the City’s accountability for the money it receives.  Additional information may be found on our website at www.fortbragg.com.  Below is the contact address for questions about the report or requests for additional financial information.

City of Fort Bragg
Finance Department
416 No. Franklin St.

Fort Bragg, CA 95437
707‐961‐2825
20 This page intentionally left blank.

BASIC FINANCIAL STATEMENTS
21 This page intentionally left blank.
22 City of Fort Bragg, California
Statement of Net Position
June 30, 2021
Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments $ 12,987,452 7,391,263 $ 20,378,715 $ Restricted cash and investments 108,064 - 108,064
Receivables:

Accounts 1,198,515 2,086,219 3,284,734
Loans/Notes receivable - 2,539,965 2,539,965
Inventory 57,159 - 57,159
Prepaid items - 4,165 4,165
Total current assets 14,351,190 12,021,612 26,372,802
Capital assets:

Nondepreciable 15,488,483 1,718,229 17,206,712
Depreciable 50,568,241 26,197,403 76,765,644
Total noncurrent assets 52,286,470 41,685,886 93,972,356 Total assets 66,637,660 53,707,498 120,345,158

DEFERRED OUTFLOWS OF RESOURCES
Pension plan 383,821 1,927,083 2,310,904
OPEB, deferred outflow - 588,729 588,729
Deferred loss on debt refunding 90,106 - 90,106
Total deferred outflows of resources 473,927 2,515,812 2,989,739 Total assets and deferred outflows $ 67,111,587 56,223,310 $ 123,334,897 $

LIABILITIES
Accounts payable and accrued liabilities 542,649 783,166 1,325,815 Interest payable 16,386 395 16,781
Unearned revenue 6,466 - 6,466
Deposits payable 168,650 101,182 269,832
Compensated absences - current portion 7,492 60,756 68,248 Due within one year 453,889 326,086 779,975
Total current liabilities 1,195,532 1,271,585 2,467,117 Long-term liabilities:

Compensated absences 508,445 90,273 598,718
Landfill post-closure - 428,209 428,209
Due after one year 5,866,002 - 5,866,002
CalPERS side fund - 302,552 302,552
Net OPEB obligation 3,106,375 - 3,106,375
Net pension liability 1,099,512 9,581,098 10,680,610
Total noncurrent liabilities 7,055,787 13,926,679 20,982,466 Total liabilities 8,251,319 15,198,264 23,449,583

DEFERRED INFLOWS OF RESOURCES
Pension plan 143,822 321,384 465,206
OPEB - 210,581 210,581
Total deferred inflows of resources 143,822 531,965 675,787 Total liabilities and deferred inflows 8,395,141 15,730,229 24,125,370

NET POSITION
Net investment in capital assets 46,331,468 41,685,886 88,017,354 Restricted for:

Gas Tax - 54,668 54,668
State and Federal Grants - 1,334 1,334
Special Sales Tax - 2,496,346 2,496,346
Asset Forfeiture - 394,953 394,953
Debt Service 108,064 - 108,064
Unrestricted 12,276,914 (4,140,106) 8,136,808
Total net position 58,716,446 40,493,081 99,209,527
Total liabilities, deferred inflows and net position $ 67,111,587 56,223,310 $ 123,334,897 $ The accompanying notes are an integral part of these basic financial statements. 23 City of Fort Bragg, California
Statement of Activities
For the year ended June 30, 2021
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary government:

Governmental activities:

General government $ 978,066 3,580,513 $ 75,099 $ 365,700 $ Public safety 252,492 76,822 - 4,385,869
Public works 1,582,532 192,558 1,218,776 2,438,493
Community development 50 4,104,663 3,629,141 -
Marketing and promotions - 93,060 - -
Interest and fiscal charges - 37,964 - -
Total governmental activities 14,640,562 2,813,140 3,973,620 1,584,476 Business-type activities:

Water 3,660,268 1,687,603 - -
Wastewater 4,017,234 3,043,007 - -
CV Starr Center - 1,228,892 - -
Total business-type activities 5,959,502 7,677,502 - -
Total primary government $ 10,490,642 20,600,064 $ 3,973,620 $ 1,584,476 $ General revenues:

Taxes:

Property taxes, levied for general purposes
Sales and use taxes
Transient occupancy tax, levied for general purposes
Franchise taxes
Other taxes
Use of money and property
Unrealized gains and losses
Other general revenues
Transfers
Total general revenues and transfers
Change in net position
Net position:

Beginning of year
End of year
Program Revenues
The accompanying notes are an integral part of these basic financial statements. 24 Governmental Business-Type
Activities Activities Totals
$ - (2,161,648) $ (2,161,648) $
- (4,056,555) (4,056,555)
- 555,373 555,373
- (475,472) (475,472)
- (93,060) (93,060)
- (37,964) (37,964)
- (6,269,326) (6,269,326)
1,972,665 - 1,972,665
974,227 - 974,227
(1,228,892) - (1,228,892)
1,718,000 - 1,718,000
1,718,000 (6,269,326) (4,551,326)
1,151,947 262,787 1,414,734
3,127,059 1,099,510 4,226,569
3,321,928 - 3,321,928
625,997 - 625,997
184,655 - 184,655
112,479 115,440 227,919
- (123,967) (123,967)
- 265,673 265,673
900,908 (900,908) -
2,378,645 7,764,863 10,143,508
4,096,645 1,495,537 5,592,182
54,619,801 38,997,544 93,617,345
$ 58,716,446 40,493,081 $ 99,209,527 $
Net (Expense) Revenue and
Changes in Net Position
25 This page intentionally left blank.
26 Fund
Governmental Funds: Governmental funds are used for taxes and grants.

General
CDBG Program Income Special Revenue
Housing Successor Agency Special Revenue
Special Sales Tax - Street Repair Special
Revenue
Street Resurfacing Capital Projects

FUND FINANCIAL STATEMENTS
Description
Primary operating fund of the City; accounts for all activities except those legally or administratively required to be accounted for in other funds.

MAJOR FUNDS
Accounts for Street Resurfacing Capital Projects Performed on a Regular Basis with Special Sales Tax for Street and Alley Repairs.

Accounts for activities related to housing rehabilitation and business assistance loans provided with CDBG funding.

Accounts for activities related to housing activities of the former Fort Bragg Redevelopment Agency.

Accounts for the City’s Special Sales Tax for Street and Alley Repairs.
27 City of Fort Bragg, California
Balance Sheet
Governmental Funds
June 30, 2021
CDBG Housing
General Program Income Successor Agency
Fund Special Revenue Special Revenue
ASSETS
Cash and investments $ 61,319 2,726,091 $ 183,128 $
Receivables:

Taxes 1,386 - -
Intergovernmental - - -
Loans/Notes receivable 2,371 2,029,313 306,874
Other receivable 1,169,944 - -
Due from other funds 733,469 - -
Prepaid items 4,165 - -
Total assets $ 2,090,632 4,637,426 $ 490,002 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 352,029 $ - $ - $ Due to other funds - - -
Deposits payable 101,182 - -
Total liabilities - 453,211 -
Deferred inflows of resources:

Unavailable revenue - 2,065,376 306,875
Total deferred inflows of resources: 2,065,376 - 306,875 Total Liabilities and deferred inflows 2,065,376 453,211 306,875 Fund balances:

Nonspendable
Prepaids and inventory 4,165 - -
Loans/Notes receivable 2,371 - -
Restricted - - -
Committed:

Operating reserve 1,989,419 - -
Recession reserve 489,929 - -
Litigation reserve 200,000 - -
Assigned 25,256 - 183,127
Unassigned (deficit) 1,498,331 - -
Total fund balances 25,256 4,184,215 183,127
Total liabilities, deferred inflows and fund balances $ 2,090,632 4,637,426 $ 490,002 $ Major Funds
The accompanying notes are an integral part of these basic financial statements. 28 Special Street Nonmajor
Sales Tax Resurfacing Governmental
Special Revenue Capital Projects Funds Totals
$ - 2,268,781 $ 1,231,405 $ 6,470,724 $
- - - 1,386
227,565 - 687,324 914,889
- - 201,407 2,539,965
- - - 1,169,944
- - - 733,469
- - - 4,165
$ - 2,496,346 $ 2,120,136 $ 11,834,542 $
$ - - $ 376,895 $ 728,924 $
26,132 - 707,337 733,469
- - - 101,182
26,132 - 1,084,232 1,563,575
- - 201,407 2,573,658
- - 201,407 2,573,658
26,132 - 1,285,639 4,137,233
- - - 4,165
- - - 2,371
- 2,496,346 450,955 2,947,301
- - - 1,989,419
- - - 489,929
- - - 200,000
- - 605,482 813,865
(26,132) (221,940) - 1,250,259
(26,132) 2,496,346 834,497 7,697,309
$ - 2,496,346 $ 2,120,136 $ 11,834,542 $
Major Funds
29 City of Fort Bragg, California
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2021
Total fund balances - total governmental funds $ 7,697,309 40,427,116
Compensated absences (569,201) $
Landfill post-closure (639,804)
CalPERS side fund (417,043)
Net OPEB obligation (3,106,375)
Net pension liability (9,581,098) (14,313,521)
2,573,658
(395)
Deferred outflows, Pension 1,927,083
Deferred inflows, Pension (321,384)
Deferred outflows, OPEB 588,729
Deferred inflows, OPEB (210,581) 1,983,847
Current assets 920,539
Noncurrent assets 1,258,770
Accounts payable and accrued liabilities (54,242) 2,125,067 Net Position of governmental activities $ 40,493,081
The accompanying notes are an integral part of these basic financial statements.

Internal services funds are used by management to charge the costs of certain activities, such as fleet services, to individual funds. The assets and liabilities of the internal service funds are:

Capital assets used in governmental activities are not current financial resources and, therefore, are not reported in the governmental funds balance sheet.

Amounts reported for governmental activities in the Statement of Net Position are different because:

Interest payable on long-term debt does not require the use of current financial resources and, therefore, is not reported in the governmental funds.

Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the governmental funds balance sheet.

Governmental funds notes receivable from various loan programs are deferred under the current financial resources measurement focus. The notes receivable are recognized in the government-wide Statement of Net Position under the accrual basis of accounting.

Pension obligations result in deferred outflows and inflows of resouces associated with the actuarial value of contributions, assets, and liaiblities 30 City of Fort Bragg, California
Reconciliation of Fund Basis Balance Sheet to Government-wide Statement of Net Position Governmental Activities
June 30, 2021
Governmental Internal
Funds Changes Services Statement of
Balance Sheet Reclassifications in GAAP Balances Net Position ASSETS
Current assets:

Cash and investments $ - 6,470,724 $ - $ 920,539 $ 7,391,263 $ Receivables:

Taxes - 1,386 - - 1,386
Intergovernmental - 914,889 - - 914,889
Loans/Notes receivable - 2,539,965 - - 2,539,965
Other receivable - 1,169,944 - - 1,169,944
Due from other funds 733,469 - (733,469) - -
Prepaid items - 4,165 - - 4,165
Total current assets 11,834,542 - (733,469) 920,539 12,021,612 Noncurrent assets:

Capital assets, net - - 40,427,116 1,258,770 41,685,886 Total noncurrent assets - - 40,427,116 1,258,770 41,685,886

DEFERRED OUTFLOWS OF RESOURCES
Pension plan - - 1,927,083 - 1,927,083
OPEB - - 588,729 - 588,729
Deferred loss on refunding - - - - - Total assets and deferred outflows of resources $ 11,834,542 $ 42,942,928 (733,469) $ 2,179,309 $ 56,223,310 $

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities $ - 728,924 $ - $ 54,242 $ 783,166 $ Interest payable - - 395 - 395
Due to other funds 733,469 - (733,469) - -
Deposits payable - 101,182 - - 101,182
Compensated absences - current portion - - 60,756 - 60,756 Due within one year - - 326,086 - 326,086
Total current liabilities 1,563,575 387,237 (733,469) 54,242 1,271,585 Noncurrent liabilities:

Long-term liabilities:

Compensated absences - - 508,445 - 508,445
Landfill post-closure - - 428,209 - 428,209
CalPERS side fund - - 302,552 - 302,552
Net OPEB obligation - - 3,106,375 - 3,106,375 Net pension liability - - 9,581,098 - 9,581,098 Total noncurrent liabilities - - 13,926,679 - 13,926,679 Total liabilities 1,563,575 14,313,916 (733,469) 54,242 15,198,264

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 2,573,658 - (2,573,658) -
Pension Plan - - 321,384 - 321,384
OPEB, deferred inflow - - 210,581 - 210,581
Total liabities and deferred inflows: 4,137,233 12,272,223 (733,469) 54,242 15,730,229

FUND BALANCES/NET POSITION
Fund balances:

Nonspendable 6,536 - (6,536) - -
Restricted 2,947,301 - (2,947,301) - -
Committed 2,679,348 - (2,679,348) - -
Assigned 813,865 - (813,865) - -
Unassigned (deficit) 1,250,259 - (1,250,259) - - - Net position: - Net investment in capital assets - - 40,427,116 1,258,770 41,685,886 Restricted - - 2,947,301 - 2,947,301
Unrestricted 7,697,309 - 866,297 (12,703,712) (4,140,106) Total fund balances/net position - 7,697,309 30,670,705 2,125,067 40,493,081 Total liabilities, deferred inflows and net position $ 11,834,542 $ 42,942,928 (733,469) $ 2,179,309 $ 56,223,310 $ The accompanying notes are an integral part of these basic financial statements. 31 City of Fort Bragg, California
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2021
CDBG Housing
General Program Income Successor Agency
Fund Special Revenue Special Revenue
REVENUES:

Taxes and assessments $ - 7,246,123 $ - $
Licenses and permits - 91,566 -
Fines and forfeitures - 36,952 -
Intergovernmental - 169,567 -
Use of money and property 57,032 (75,200) 1,795
Charges for services - 47,329 -
Reimbursements - 2,246,723 -
Other revenues - 109,359 -
Total revenues 57,032 9,872,419 1,795
EXPENDITURES:

Current:

General government 2,223,656 - -
Public safety 3,907,671 - -
Public works 1,324,576 - -
Community development 301,984 - 250,000
Marketing and promotions 93,060 - -
Cost allocations 478,497 - -
Capital outlay - - -
Debt service:

Principal 37,626 - -
Interest and fiscal charges 338 - -
Total expenditures - 8,367,408 250,000

REVENUES OVER (UNDER)
EXPENDITURES 57,032 1,505,011 (248,205)
OTHER FINANCING SOURCES (USES):

Proceeds from sales of assets 8,624 - -
Transfers in 465,962 - -
Transfers out (486,624) - -
Total other financing sources (uses) - (12,038) -
Net change in fund balances 57,032 1,492,973 (248,205)
FUND BALANCES (DEFICITS):

Beginning of year 2,691,242 (31,776) 431,332
End of year $ 25,256 4,184,215 $ 183,127 $
Major Funds
The accompanying notes are an integral part of these basic financial statements. 32 Special Street Other
Sales Tax Resurfacing Governmental
Special Revenue Capital Projects Funds Totals
$ - 1,099,049 $ 66,414 $ 8,411,586 $
- - - 91,566
- - 66,488 103,440
- - 5,713,791 5,883,358
- 18,968 9,967 12,562
- - 110 47,439
- - - 2,246,723
138,733 16,127 - 264,219
138,733 1,118,017 5,872,897 17,060,893
- - 32,378 2,256,034
- - 186,069 4,093,740
- 195,231 327,050 1,846,857
- - 3,816,253 4,368,237
- - - 93,060
- - - 478,497
27,739 386,931 - 414,670
- - - 37,626
- - - 338
27,739 195,231 4,748,681 13,589,059
110,994 922,786 1,124,216 3,471,834
- - - 8,624
228,274 - 171,385 865,621
(118,400) - (1,798,443) (2,403,467)
109,874 - (1,627,058) (1,529,222)
220,868 922,786 (502,842) 1,942,612
(247,000) 1,337,339 1,573,560 5,754,697
$ (26,132) 2,496,346 $ 834,497 $ 7,697,309 $
Major Funds
33 City of Fort Bragg, California
Reconciliation of Fund Basis Statements to Government-wide Statement of Activities For the year ended June 30, 2021
Compensated Capital
Absences/ Asset GovernmentFund Based Debt Internal (Additions)/ Cost OPEB wide Functions/Programs Totals Service Service Depreciation Retirements Allocation Obligation Pension plan Totals Governmental activities:

General government $ 67,809 2,256,034 $ 685,090 $ 92,470 $ - $ 85,915 $ (176,869) $ 570,064 $ 3,580,513 $ Public safety - 4,093,740 - 136,231 - 155,898 - - 4,385,869 Public works (80,436) 1,846,857 - 1,136,182 (534,442) 70,332 - - 2,438,493 Community development (429,926) 4,368,237 - - - 166,352 - - 4,104,663 Marketing and promotions - 93,060 - - - - - - 93,060
Cost allocations - 478,497 - - - (478,497) - - -
Capital outlay 414,670 - - - (414,670) - - - -
Debt service/Interest 37,964 - - - - - - - 37,964
Total governmental activities $ (442,553) 13,589,059 $ 685,090 $ 1,364,883 $ (949,112) $ - $ (176,869) $ 570,064 $ 14,640,562 $ The accompanying notes are an integral part of these basic financial statements. 34 City of Fort Bragg, California
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the year ended June 30, 2021
Net change in fund balances - total governmental funds $ 1,942,612 Capital asset purchases capitalized $ 949,112
Proceeds from sale of capital assets (8,624)
Depreciation expense (1,364,883) (424,395)
(23,886)
Capital lease obligations
CalPERS side fund 80,436
Landfill closure liability 429,926
Change in compensated absences (67,809) 362,117
Net OPEB obligation 176,869
Net Pension obligation (570,064) (393,195)
(48,152)
Change in Net Position of governmental activities $ 1,495,537 Amounts reported for governmental activities in the Statement of Activities are different because:

Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds:

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

Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position:

Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets:

Certain notes receivable are reported in the governmental funds as expenditures and then offset by a deferred revenue as they are not available to pay current expenditures.

Likewise, when the note is collected it is reflected in revenue. This is the net change between notes receivable collected and issued.

Certain employee benefit obligations are recorded on a pay-as-you-go basis in the governmental funds, but are accrued as liabilities in the Statement of Net Position:

Internal services funds are used by management to charge the costs of certain activities, such as fleet services, to individual funds. The change in Net Position of the Internal Service Funds net of capital assets are included in the governmental activities in the government-wide Statement of Net Position.
35 City of Fort Bragg, California
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual - General and Major Special Revenue Funds For the year ended June 30, 2021
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Taxes and assessments 5,146,043 $ 6,350,835 $ 7,246,123 $ 895,288 $ Licenses and permits 89,792 89,792 91,566 1,774
Fines and forfeitures 24,142 24,142 36,952 12,810
Intergovernmental 266,363 426,564 169,567 (256,997)
Use of money and property 30,201 30,201 (75,200) (105,401) Charges for services 54,914 54,914 47,329 (7,585)
Reimbursements 2,277,993 2,312,993 2,246,723 (66,270)
Other revenues 35,095 295,465 109,359 (186,106)
Total revenues 9,584,906 7,924,543 9,872,419 287,513
EXPENDITURES:

Current:

General government:

City Council 150,247 173,140 131,495 41,645
Administrative services 655,008 856,520 751,316 105,204 Finance 456,495 483,691 468,474 15,217
Other - unclassified 871,458 1,174,443 872,371 302,072
Public safety:

Police Department 3,424,636 3,426,010 3,467,709 (41,699) Fire Department 441,871 441,871 439,962 1,909
Public works:

Administration and engineering 415,004 455,740 515,727 (59,987) Parks and facilities 40,775 68,775 31,927 36,848
Street maintenance 118,000 118,000 107,606 10,394
Storm drains 14,300 14,300 10,847 3,453
Corporation yard 671,316 680,314 634,446 45,868
Traffic and safety 23,800 23,800 24,023 (223)
Community development 203,936 380,156 301,984 78,172
Marketing and promotions - 111,700 93,060 18,640
Cost allocations 789,222 789,222 478,497 310,725
Debt service:

Principal - - 37,626 (37,626)
Interest and fiscal charges - - 338 (338)
Total expenditures 9,197,682 8,276,068 8,367,408 830,274

REVENUES OVER (UNDER)
EXPENDITURES 387,224 (351,525) 1,505,011 1,117,787
OTHER FINANCING SOURCES (USES):

Cost allocations
Proceeds from sales of assets 8,803 8,803 8,624 (179)
Transfers in 225,790 - 465,962 240,172
Transfers out - - (486,624) (486,624)
Total other financing sources (uses) 234,593 8,803 (12,038) (246,631) Net change in fund balances 621,817 (342,722) 1,492,973 871,156 FUND BALANCES (DEFICITS):

Beginning of year 2,691,242 2,691,242 2,691,242 -
End of year $ 3,313,059 2,348,520 $ 4,184,215 $ 871,156 $ General Fund
The accompanying notes are an integral part of these basic financial statements.

Budgeted Amounts
36 Variance w/Final Variance w/Final
Positive Positive
Original Final Actual (Negative) Original Final Actual (Negative) $ - - $ - $ - $ - $ - $ - $ - $
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - 57,032 57,032 8,772 8,772 1,795 (6,977)
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - 57,032 57,032 8,772 8,772 1,795 (6,977)
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - 57,032 57,032 8,772 8,772 1,795 (6,977)
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - 57,032 57,032 8,772 8,772 1,795 (6,977)
(31,776) (31,776) (31,776) - 431,332 431,332 431,332 -
$ (31,776) (31,776) $ 25,256 $ 57,032 $ 440,104 $ 440,104 $ 433,127 $ (6,977) $ (continued)
CDBG Program Income Special Revenue Fund Housing Successor Agency Special Revenue Fund Budgeted Amounts Budgeted Amounts
37 City of Fort Bragg, California
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual - General and Major Special Revenue Funds For the year ended June 30, 2021
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Taxes and assessments 636,903 $ 876,004 $ 1,099,049 $ 223,045 $ Licenses and permits - - - -
Fines and forfeitures - - - -
Intergovernmental - - - -
Use of money and property 28,096 28,096 18,968 (9,128)
Charges for services - - - -
Reimbursements - - - -
Other revenues - - - -
Total revenues 904,100 664,999 1,118,017 213,917
EXPENDITURES:

Current:

General government:

City Council - - - -
Administrative services - - - -
Finance - - - -
Other - unclassified - - - -
Public safety:

Police Department - - - -
Fire Department - - - -
Public works:

Administration and engineering - 3,000 195,231 (192,231) Parks and facilities - - - -
Street maintenance - - - -
Storm drains - - - -
Corporation yard - - - -
Traffic and safety - - - -
Community development - - - -
Marketing and promotions - - - -
Cost allocations - - - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 3,000 - 195,231 (192,231)

REVENUES OVER (UNDER)
EXPENDITURES 901,100 664,999 922,786 21,686
OTHER FINANCING SOURCES (USES):

Cost allocations
Transfer to Successor Agency - - - -
Transfers in - - - -
Transfers out 00 - -
Total other financing sources (uses) - - - -
Net change in fund balances 901,100 664,999 922,786 21,686 FUND BALANCES:

Beginning of year 1,573,560 1,573,560 1,573,560 -
End of year $ 2,474,660 2,238,559 $ 2,496,346 $ 21,686 $ (concluded)
Budgeted Amounts
Special Sales Tax Special Revenue
38 Fund
Major Funds:

Water Fund
Sewer Fund
CV Starr Center

ENTERPRISE FUNDS
Description
Accounts for the operation and maintenance of the City’s water treatment and distribution system.

Accounts for the operation and maintenance of the City’s wastewater treatment plant and collection facilities.

Accounts for activities related to the CV Starr Community Center. 39 City of Fort Bragg, California
Statement of Net Position
Proprietary Funds
June 30, 2021
Governmental
Activities
Water Sewer CV Starr Center Internal
Fund Fund Fund Totals Service Funds
ASSETS
Current assets:

Cash and investments 7,545,470 $ 3,813,608 $ 1,628,374 $ 12,987,452 $ 920,539 $ Restricted cash and investments 108,064 - - 108,064
Receivables:

Accounts 429,157 496,739 272,619 1,198,515 -
Inventory and prepaids 51,192 4,971 996 57,159 -
Total current assets 4,315,318 8,133,883 1,901,989 14,351,190 920,539 Noncurrent assets:

Capital assets, net 7,131,550 25,938,794 19,216,126 52,286,470 1,258 ,770 Total noncurrent assets 25,938,794 7,131,550 19,216,126 52,286,470 1,258,770 Total Assets 30,254,112 15,265,433 21,118,115 66,637,660 2,179,309

DEFERRED OUTFLOWS OF RESOURCES
Pension plan - 383,821 - 383,821 -
Deferred loss on debt refunding 90,106 - - 90,106 -
Total assets and defered outflows of resources $ 30,637,933 15,355,539 $ 21,118,115 $ 67,111,587 $ 2,179,309 $

LIABILITIES
Current liabilities:

Accounts payable 82,489 $ 78,233 $ 356,243 $ 516,965 $ 51,204 $ Accrued payroll - 25,684 - 25,684 3,038
Interest payable 16,386 - - 16,386 -
Unearned revenue - 6,466 - 6,466 -
Deposits payable 149,604 250 18,796 168,650 -
Compensated absences - current portion 2,417 3,553 1,522 7,492 - Due within one year 364,889 89,000 - 453,889 -
Total current liabilities 203,186 615,785 376,561 1,195,532 54,242 Noncurrent liabilities:

Compensated absences 21,561 32,290 36,422 90,273 -
Due after one year 1,128,002 4,738,000 - 5,866,002 -
Net pension liability - 1,099,512 - 1,099,512 -
Total noncurrent liabilities 5,869,802 1,149,563 36,422 7,055,787 - Total liabilities 6,072,988 1,765,348 412,983 8,251,319 54,242

DEFERRED INFLOWS OF RESOURCES
Pension Plan - 143,822 - 143,822 -
Total deferred inflows of resources 143,822 - - 143,822 -

NET POSITION
Net Position:

Net investment in capital assets 6,003,548 21,111,794 19,216,126 46,331,468 1,258,770 Restricted for debt service 108,064 - - 108,064 -
Unrestricted 7,478,579 3,309,329 1,489,006 12,276,914 866,297 Total net position 24,421,123 13,590,191 20,705,132 58,716,446 2,125,067 Total liabilities, deferred inflows and net position $ 30,637,933 15,355,539 $ 21,118,115 $ 67,111,587 $ 2,179,309 $ The accompanying notes are an integral part of these basic financial statements. 40 City of Fort Bragg, California
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2021
Governmental
Activities
Water Sewer CV Starr Center Internal
Fund Fund Fund Totals Service Funds
OPERATING REVENUES:

Charges for service 3,634,615 $ 3,896,767 $ - $ 7,531,382 $ - $ Other operating revenue 25,653 120,467 - 146,120 5,826
Interdepartmental charges - - - - 625,019
Total operating revenues 4,017,234 3,660,268 - 7,677,502 630,845 OPERATING EXPENSES:

Personnel services 452,486 686,111 264,720 1,403,317 314,860 Administration 470,943 693,735 4,404 1,169,082
Repairs and maintenance 36,517 60,669 40,252 137,438 63,385 Materials and supplies 149,769 272,529 24,103 446,401 291,452 Utilities 117,070 198,320 76,877 392,267 -
Contractual services 56,769 164,551 6,497 227,817 2,643 Insurance 17,230 53,032 52,515 122,777 -
Other operating 2,318 - 61,449 63,767 -
Depreciation 319,552 816,300 698,075 1,833,927 82,487
Total operating expenses 2,945,247 1,622,654 1,228,892 5,796,793 754,827 OPERATING INCOME 1,071,987 2,037,614 (1,228,892) 1,880,709 (123,982) NONOPERATING REVENUES (EXPENSES):

Property taxes - - 262,787 262,787 -
Sales taxes - - 1,099,510 1,099,510 -
Interest revenue 66,697 36,824 11,919 115,440 -
Interest expense (64,949) (97,760) - (162,709) -
Total non-operating revenues, net (60,936) 1,748 1,374,216 1,315,028 -

NET INCOME BEFORE
TRANSFERS 1,011,051 2,039,362 145,324 3,195,737 (123,982) Transfers in - 1,036,527 - 1,036,527 636,938
Transfers out (135,619) - - (135,619) -
Total transfers 1,036,527 (135,619) - 900,908 636,938
CHANGE IN NET POSITION 2,047,578 1,903,743 145,324 4,096,645 512,956 NET POSITION:

Beginning of year 11,686,448 22,373,545 20,559,808 54,619,801 1,612,111 End of year 13,590,191 $ 24,421,123 $ 20,705,132 $ 58,716,446 $ 2,125,067 $ The accompanying notes are an integral part of these basic financial statements. 41 City of Fort Bragg, California
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2021
Governmental
Activities
Water Sewer CV Starr Center Internal
Fund Fund Fund Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers/users for services provided 3,57 $ 4,639,187 2,866 $ - $ 8,212,053 $ - $ Cash received from interfund services provided - - - - 630,845 Cash payments to suppliers for goods and services (907,965) (2,722,323) (344,529) (3,974,817) (347,963) Cash payments to employees for services (455,863) (638,198) (245,163) (1,339,224) (313,477) Net cash provided by operating activities 1,278,666 2,209,038 (589,692) 2,898,012 (30,595)

CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:

Transfers received - 723,929 - 723,929 636,938
Transfers paid (135,619) - - (135,619) -
Taxes received - - 1,362,296 1,362,296 -
Net cash used by noncapital financing activities 723,929 (135,619) 1,362,296 1,950,606 636,938

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Acquisition and construction of capital assets (547,173) (1,306,075) - (1,853,248) (643,595) Principal paid on long term debt (379,742) (87,000) - (466,742) - Interest paid on long term debt (64,949) (97,760) - (162,709) - Net cash (used) by capital and related financing activities (1,490,835) (991,864) - (2,482,699) (643,595) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income received 66 36 ,697 11 ,824 115 ,919 - ,440 Net cash provided by investing activities 36,824 66,697 11,919 115,440 - Net increase (decrease) in cash and cash equivalents 548,584 1,148,252 784,523 2,481,359 (37,252) CASH AND CASH EQUIVALENTS:

Beginning of year 6,505,282 3,265,024 843,851 10,614,157 957,791 End of year 7,653,534 $ 3,813,608 $ 1,628,374 $ 13,095,516 $ 920,539 $ Presentation in Statement of Financial Position:

Cash and investments 7,545,470 $ 3,813,608 $ 1,628,374 $ 12,987,452 $ 920,539 $ Restricted cash and investments 108,064 - - 108,064 -
Total Cash and investments 7,653,534 $ 3,813,608 $ 1,628,374 $ 13,095,516 $ 920,539 $ Reconciliation of income from operations to net
cash provided by operating activities:

Operating income 2,037,614 $ 1,071,987 $ (1,228,892) $ 1,880,709 $ (123,982) $ Adjustments to reconcile operating income
to net cash provided by operating activities:

Depreciation 319,552 816,300 698,075 1,833,927 82,487
Pension - 43,975 - 43,975 -
(Increase) decrease in current assets:

Accounts receivable (86,832) 621,953 (59,394) 475,727 - Inventory and prepaids (7,976) 18 (18) (7,976) -
Increase (decrease) in liabilities: .

Accounts payable (49,373) (1,279,505) (19,020) (1,347,898) 9,517 Accrued liabilities - 7,567 - 7,567 1,383
Deposits payable (570) - - (570) -
Compensated absences (3,377) (3,629) 19,557 12,551 -
Net cash provided by operating activities $ 1,278,666 2,209,038 $ (589,692) $ 2,898,012 $ (30,595) $ There were no noncash investing, capital, or financing activities affecting recognized assets and liabilities for the year ended June 30, 2021.

The accompanying notes are an integral part of these basic financial statements. 42 This page intentionally left blank.
43 Fund
Private Purpose Trust Fund
Successor Agency - Fort Bragg Redevelopment Agency

FIDUCIARY ACTIVITIES
Accounts for funds collected and disbursed for the
dissolution of the former Fort Bragg Redevelopment
Agency related to Administration and Retirement of
enforceable obligations
Private Purpose Trust Funds are used for resources held for other individuals and entities in a manner similar to private enterprise.

Description
44 City of Fort Bragg, California
Statement of Fiduciary Net Position
Fiduciary Activities
June 30, 2021
Former Fort Bragg
Redevelopment
Agency

ASSETS AND DEFERRED OUTFLOWS
Current assets:

Cash and investments $ 153,184
Total current assets 153,184
Total assets 153,184
Deferred outflows of resources
Deferred loss on debt refunding 75,155
Total deferred outflows of resources 75,155
Total assets and deferred outflows of resources $ 228,339

LIABILITIES, DEFERRED INFLOWS AND NET POSITION
Current liabilities:

Accounts payable and accrued liabilities $ -
Interest payable 36,758
Due within one year 163,380
Total current liabilities 200,138
Long-term liabilities:

Due after one year 2,990,776
Total long-term liabilities 2,990,776
Deferred inflows of resources
Unavailable revenue 275,300
Total liabilities and deferred inflows of resources 3,466,214 Net Position (Deficit) (3,237,875)
Total liabilities and net position $ 228,339
Successor Agency
The accompanying notes are an integral part of these basic financial statements. 45 City of Fort Bragg, California
Statement of Changes in Fiduciary Net Assets
Private Purpose Trust Funds
For the year ended June 30, 2021
Former Fort Bragg
Redevelopment
Agency
ADDITIONS:

Property taxes $ 382,100
Total operating revenues 382,100
DEDUCTIONS:

Community development 126,732
Interest and trustee fees 101,508
Total operating expenses 228,240
CHANGE IN FIDUCIARY NET ASSETS 153,860
NET ASSETS (DEFICIT):

Beginning of year (3,391,735)
End of year $ (3,237,875)
Successor Agency
The accompanying notes are an integral part of these basic financial statements. 46 47

NOTES TO BASIC FINANCIAL STATEMENTS
City of Fort Bragg, California
Index to the Notes to the Basic Financial Statements
For the year ended June 30, 2021
48 Page
Note 1 ‐ Summary of Significant Accounting Policies ..................................................................................... 49 A. Description of Government‐Wide Financial Statements ....................................................................... 49 B. Reporting Entity ...................................................................................................................................... 49 C. Basis of Presentation .............................................................................................................................. 50 D. Measurement Focus ............................................................................................................................... 52 E. Budgetary Information ........................................................................................................................... 53 F. Unearned Revenue ................................................................................................................................. 54 G. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/ Fund Balance .......................................................................................................................................... 55 H. Revenues, Expenditures/Expenses ........................................................................................................ 60 I. Use of Estimates ...................................................................................................................................... 62 J. New and Closed Funds ............................................................................................................................ 62 K. Reclassifications ...................................................................................................................................... 62 L. Other Post‐Employment Benefits (OPEB) ............................................................................................... 62 Note 2 – Cash and Investments ........................................................................................................................ 63 Note 3 – Accounts Receivable .......................................................................................................................... 66 Note 4 – Loans and Notes Receivable .............................................................................................................. 67 Note 5 – Capital Assets ..................................................................................................................................... 68 Note 6 – Accounts Payable and Accrued Liabilities ......................................................................................... 70 Note 7 – Long‐term Liabilities .......................................................................................................................... 70 Note 8 – Net Position/Fund Balances .............................................................................................................. 74 Note 9 – Interfund Transactions ...................................................................................................................... 76 Note 10 – Risk Management ............................................................................................................................ 77 Note 11 – Public Employee Retirement System .............................................................................................. 79 Note 12 – Other Post‐Employment Benefits ................................................................................................... 84 Note 13 – Successor Agency for Trust for Assets of Former Redevelopment Agency ................................... 88 Note 14 – Commitments and Contingencies ................................................................................................... 90 Note 15 – New Accounting Pronouncements .................................................................................................. 91 Note 16 – Pandemic Effects ............................................................................................................................. 92 City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
49 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Fort Bragg (City) have been prepared in conformity with accounting principles (USGAAP) generally accepted in the United States of America as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant principles are described below.

A.   Description of Government‐wide Financial Statements The government‐wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non‐fiduciary activities of the primary government and its component units. All fiduciary activities are reported only in the fiduciary fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other non‐exchange transactions, are reported separately from business‐type activities, which rely to a significant extent on fees and charges to external customers for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.

B.   Reporting Entity
The City of Fort Bragg was incorporated August 5, 1889, under the applicable laws and regulations of the State of California. The City operates under a Council‐City Manager form of government and provides a variety of services including public safety (police and fire); streets and highways; wastewater collection, treatment, and disposal; water treatment; planning and zoning; public improvement and redevelopment; and general administrative services. The accompanying financial statements present the City and its component units, entities for which the City is considered to be financially accountable.

Blended Component Units
Because of their relationship with the City and the nature of their operations, component units are, in substance, part of the City’s operations and, accordingly, the activities of these component units are combined, or blended with the activities of the City for purposes of reporting in the accompanying basic financial statements. The basis for blending the component units is that their governing bodies are substantially the same as the City’s Council.

Fort Bragg Municipal Improvement District No. 1 (District) includes all of the funds and operations for the City’s wastewater collection and treatment processes. The District is governed by a Board of Directors comprised of the members of the Fort Bragg City Council. The City of Fort Bragg exercises significant financial and management control over the District. The activities of the District are reported as a major enterprise fund within the City’s financial statements.

Complete financial statements of the District can be obtained directly from the City of Fort Bragg, 416 N.

Franklin St., Fort Bragg, CA 95437.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
50 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C.   Basis of Presentation
The accounts of the City are organized and operated on the basis of funds, each of which is defined as a separate fiscal and accounting entity with a self‐balancing set of accounts. These funds are established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations.

In accordance with Governmental Accounting Standards Board Statement No. 34 (GASB 34), “Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments,” the financial statements consist of the following:
● Government‐wide financial statements,
● Fund financial statements, and
● Notes to the financial statements
Government‐wide Financial Statements
While separate government‐wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds and internal service funds, while business‐type activities incorporate data from the government’s enterprise funds. 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.

The Statement of Net Position and the Statement of Activities report information on all of the non‐fiduciary activities of the primary government (the City) and its component units. As a general rule, the effect of interfund activity has been eliminated from the government‐wide financial statements. Exceptions to this general rule are payments in lieu of taxes where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the City’s water and wastewater functions and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non‐exchange transactions.

The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the City’s governmental activities. Direct expenses are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational need of a particular program, and (c) fees, grants, and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
51 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C.   Basis of Presentation, Continued
Fund Financial Statements
The fund financial statements provide information about the City’s funds, including its fiduciary fund and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as non‐major funds.

The City reports the following major governmental funds:

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

The Community Development Block Grant (CDBG) Program Income Fund special revenue fund was established to account for program income generated by CDBG funded projects. The funds are used for activities that benefit low‐ and moderate‐income persons to ensure decent affordable housing and to create jobs through the expansion and retention of businesses.

The Housing Successor Agency special revenue fund was established to account for the housing assets, rights, power, duties, obligations and functions previously performed by the Redevelopment Agency in administering its Low and Moderate Income Housing Fund.

The Special Sales Tax Street Repair Fund special revenue fund is used to account for revenue received from local sales taxes restricted to street repairs.

The Street Resurfacing Project Fund is a capital project fund used to account for costs associated with the Street Resurfacing project and Street Structural Repair project. This project is funded with local sales taxes collected specifically for street maintenance and repair.

The City reports the following major proprietary funds:

The Water enterprise fund accounts for the activities of the City’s water treatment and distribution operations.

The Wastewater enterprise fund accounts for the activities of the Fort Bragg Municipal Improvement District No. 1 which provides the City’s wastewater collection, treatment, and disposal operations.

The C.V. Starr Center enterprise fund accounts for all operations of the C.V. Starr Center, including the local sales tax restricted to funding the operations of the C.V. Starr Center and the property taxes collected by the City as part of a Property Tax Exchange agreement.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
52 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C.   Basis of Presentation, Continued
Additionally, the City reports the following fund types:

Internal Service Funds account for maintenance and repair of City facilities, information technology, and vehicle operations that provide services to other departments of the City on a cost reimbursement basis.

The Private‐Purpose Trust Fund is a fiduciary fund type used by the City to report trust arrangements under which principal and income benefit other governments. This fund reports the assets, liabilities, and activities of the Fort Bragg Redevelopment Successor Agency (Successor Agency). The Successor Agency operates under the auspices of a legislatively formed Oversight Board comprised of representatives of the local agencies that serve the redevelopment project area. The Oversight Board, in its fiduciary capacity, has authority over the operations and the timely dissolution of the former RDA. It is tasked with fulfilling the obligations of the former RDA, and is also responsible for revenue collection, maintaining necessary bond reserves, and disposing of excess property.

During the course of operations the City has activity between funds for various purposes. Any residual balances outstanding at fiscal year‐end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government‐wide financial statements. Balances between the funds included in governmental activities (i.e., the governmental and internal service funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between the funds included in business‐type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business‐type activities column.

Further, certain activity occurs during the fiscal year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government‐wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances between the funds included in business‐type activities are eliminated so that only the net amount is included as transfers in the business‐type activities column.

D.   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. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
53 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D.   Measurement Focus and Basis of Accounting, continued The governmental fund financial statements are reported using the current financial resources measurement focus and 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. For this purpose, 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 expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long‐term debt and acquisitions under capital leases are reported as other financing sources.

Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of a fiscal year‐end). Expenditure‐driven grants are recognized as revenue when eligible expenditures have been incurred against a fully executed grant agreement. Such accrued revenue is considered available even if it is not received within 60 days of year‐end. This method provides improved reporting and control at the program level because it appropriately matches funding sources and uses. All other revenue items are considered to be measurable and available only when cash is received by the City.

Proprietary and private‐purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting. Proprietary funds distinguish operating revenues and expenses from non‐ operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Water and Wastewater enterprise funds and of the City’s internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation/amortization on capital assets. All revenues and expenses not meeting this definition are reported as non‐operating revenues and expenses.

E.   Budgetary Information
1) Budgetary basis of accounting
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for the general fund and enterprise funds. The capital projects funds are appropriated on a project‐length basis. Other special revenue funds do not have appropriated budgets since other means control the use of these resources (e.g., grant awards and endowment requirements) and sometimes span a period of more than one fiscal year.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
54 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E.   Budgetary Information, Continued
The City Council follows the following procedures in establishing the budgetary data reflected in the required supplementary information:
 Before the end of each fiscal year, the City Manager and Finance Director prepare and submit to the City Council a proposed budget for the subsequent fiscal year. The budget includes proposed expenditures and the means for financing them.
 The City Council reviews the proposed budget in public hearings which provides interested citizens opportunity to comment. The Council may add to, subtract from, or change appropriations, but may not change the form of the budget.
 Prior to July 1, or soon after, the budget is legally adopted by the City Council through resolution.

The appropriated budget is prepared by fund, function, and department. The City’s department heads may make transfers of appropriations within a department with City Manager approval.

Transfers of appropriations between departments require the approval of the Council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the department level.

Appropriations in all budgeted funds lapse at the end of the fiscal year unless they have related encumbrances. Encumbrances are commitments related to unperformed (executory) contracts for goods or services (i.e., purchase orders, contracts, and commitments). Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. Valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are brought forward and become part of the subsequent year’s budget pursuant to City policy.

F.  Unearned Revenue
Under both the accrual and modified accrual basis of accounting, revenue may be recognized only when earned. Therefore, the government‐wide statement of net position as well as governmental and enterprise funds defer revenue recognition in connection with resources that have been received as of fiscal year‐end, but not yet earned. Assets recognized in connection with a transaction before the earnings process is complete are offset by a corresponding liability for unearned revenue.

Under the modified accrual basis of accounting, it is not enough that revenue had been earned if it is to be recognized in the current period. Revenue must also be susceptible to accrual (i.e., measurable and available to finance expenditures of the current period). Governmental funds report unearned revenues, in connection with receivables for revenue not considered available to liquidate, as deferred inflows of resources.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
55 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G.  Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance 1)  Cash and cash equivalents
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short‐ term investments with original maturities of three months or less from the date of acquisition. 2)  Investments
Investments for the City and its component units are reported at fair value (generally based on quoted market prices).
3)  Inventories and prepaid items
Inventories for both governmental and proprietary funds consist principally of materials and supplies held for consumption and are valued at cost, approximating fair value, using the first‐in, first‐out (FIFO) method. The cost of such inventories is recorded as expenditures/expenses when consumed rather than when purchased. Inventories recorded in the governmental funds do not reflect current appropriable resources and thus, an equivalent portion of fund balance is shown as non‐spendable.

Certain payments to vendors represent costs applicable to future accounting periods and would be recorded as prepaid items in both the government‐wide and fund financial statements. The City had $960 in prepaid expenses in governmental activities as of June 30, 2021. 4)  Capital Assets
Capital assets, which include land, buildings, infrastructure (roads, sidewalks and similar items), and machinery and equipment, are reported in the applicable governmental or business‐type activities column in the governmental‐wide financial statements. Capital assets, except for infrastructure assets, are defined by the City as assets with an initial individual cost of more than $5,000 and an estimated useful life in excess of two years. For infrastructure assets the same estimated minimum useful life is used (in excess of two years), but only those infrastructure projects that cost more than $50,000 are reported as capital assets.

In the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities), the City chose to include all such items regardless of their acquisition date or amount. The City was able to estimate the historical cost for the initial reporting of these assets through back trending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price‐level index to deflate the cost to the acquisition year or estimated acquisition year). As the City constructs or acquires additional capital assets each period, including infrastructure assets, they are capitalized and reported at historical cost.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
56 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G.  Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance, Continued
The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or increase its estimated useful life.  Donated capital assets, donated works of art and similar items as well as capital assets received in a service concession arrangement are reported at acquisition value. During the current fiscal period, infrastructure projects that were incomplete are reported as “construction in progress.”
Interest is capitalized on the construction of major assets acquired with debt. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project with interest earned on invested proceeds over the same period. For the fiscal year ended June 30, 2021, there were no projects meeting the criteria for interest capitalization.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives of the related capital assets, as applicable. Capitalization thresholds are $5,000 for any single item.

Land and construction in progress are not depreciated. Property, plant, equipment, and infrastructure of the City are depreciated using the straight‐line method using the following estimated useful lives:

Capital Asset Class
Estimated
Useful Life
Buildings 40 ‐75 years
Infrastructure 10 ‐ 50 years
Utility Plant 10 ‐ 50 years
Machinery & Equipment 3 ‐ 40 years
Vehicles 5 ‐ 10 years
Improvements 5 ‐ 30 years
5) Net position flow assumption
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 assets 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 policy to consider restricted – net position to have been depleted before unrestricted – net position is applied, due to the nature of the restrictions.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
57 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G.  Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance, Continued
6) Deferred outflows/inflows of resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has three items reported as a deferred outflow of resources. The first item, deferred loss on refunding, is reported in the government‐wide statement of net position. A deferred loss on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt.  The second item is a deferred charge on OPEB Trust plan contributions in the government‐wide statement of net position.

The third item is a deferred charge on pension plan contributions in the government‐wide statement of net position.

In addition to liabilities, the statement of position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has three items reported as a deferred inflow of resources. The first item arises only under the modified accrual basis of accounting. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: sales taxes and grants. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second deferred inflow of resources is the net difference between projected and actual earnings on OPEB Trust plan investments and is reported in the government‐wide statement of net position. The third deferred inflow of resources is the net difference between projected and actual earnings on pension plan investments and is reported in the government‐wide statement of net position.
7)  Fund Balance flow assumptions
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
58 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G.  Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance, Continued
8) Net Position/Fund Balance
GASB Statement No. 63 adds the concept of Net Position, which is measured on the full accrual basis, to the concept of Fund Balance, which is measured on the modified accrual basis. Net Position represents the difference between assets and liabilities and are divided into three captions under GASB Statement No. 34. These captions apply only to Net Position as determined at the government‐ wide level, and are described below:

Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include debt service requirements and funds restricted for various purposes, such as low and moderate income housing, community development, streets and roads, and public safety.

Unrestricted describes the portion of Net Position which is not restricted as to use.

GASB Statement No. 54 establishes fund balance classifications for the Fund Financial Statements that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds.

Non‐spendable Fund Balance – This amount is comprised of net position that cannot be spent because of their form or must remain intact pursuant to legal or contractual requirements.

Restricted Fund Balance – This balance is comprised of net position that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation.

Committed Fund Balance – This balance includes amounts that can be used only for the specific purposes determined by a formal action of the City’s highest level of decision‐making authority. The City Council (Council) is the highest level of decision‐making authority for the City that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation.

Assigned Fund Balance – This balance is intended to be used by the City for specific purposes but do not meet the criteria to be classified as committed. The Council has City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
59 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G.  Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance, Continued
by resolution authorized the Finance Director to assign fund balance. The Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.

Unassigned Fund Balance – This balance represents residual net resources or total fund balance in the General Fund in excess of non‐spendable, restricted, committed and assigned fund balance (surplus). In other governmental funds the balance represents the excess of non‐spendable, restricted, and committed fund balance over total fund balance (deficit).

The City applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available.

Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. 9)  Restricted Assets
Certain cash and investments in the Water Fund are held by the City’s fiscal agents and classified as restricted assets on the statement of net position because their use is limited by applicable bond or other covenants.
10) Lease Obligations
The City leases various assets under both operating and capital lease agreements. In the government‐ wide and proprietary funds’ financial statements, capital leases and the related lease obligations are reported as liabilities in the applicable governmental activities or proprietary funds’ statement of net position.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
60 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G.  Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance, Continued
11) Encumbrances
Encumbrances resulting from issuing purchase orders as a result of normal purchasing activities approved by appropriate authorities as of June 30, 2021, are summarized below.

Fund Amount
DDA 38,044 $
General Fund 63,208
Water 62,804
Wastewater 494,878
IT 14,758
Fleet 6,274
Facilities 7,239
HEAP 3,000,000
COVID Related 103,845
$     3,791,050
12) Long‐Term Obligations
In the government‐wide financial statements, the proprietary fund financial statements, and the private‐purpose trust fund, long‐term debt and other long‐term obligations are reported as liabilities.

Initial‐issue bond premiums and discounts are deferred and amortized over the life of the bonds using the straight‐line method. Amortization of bond premiums or discounts is included as a component of interest expense.

H.   Revenues and expenditures/expenses
1) Program revenues
Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions (including special assessments) that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes (excluding those dedicated for specific purposes) and other internally dedicated resources are reported as general revenues rather than as program revenues.

The City only accrues revenues at fiscal year‐end and accrues only those revenues it deems collectible; as such the City has no allowance for uncollectible accounts. Management has determined that uncollectible receivables, if any, would be immaterial based on an analysis of historical trends.
2) Property taxes
Property taxes attach as an enforceable lien on real property and are levied as of July 1st. The City relies on the competency of the County of Mendocino Assessor’s and Auditor‐Controller’s (County) offices to properly assess, collect, and distribute property taxes.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
61 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued H.   Revenues and expenditures/expenses, Continued
The method of allocation used by the County is subject to review by the State of California. The City and the County have adopted the Alternative Method of Tax Apportionment – Teeter Plan. First enacted in 1949, the Teeter Plan provides California counties with an optional alternative method for allocating delinquent property tax revenues. Using the accrual method of accounting under the Teeter Plan, counties allocate property tax revenues based on the total amount of property taxes billed, but not yet collected. In exchange, the counties receive the penalties and interest on delinquent taxes when collected. Mendocino County assesses properties, bills for, and collects secured and unsecured property taxes as follows:

Secured Unsecured
Lien dates January 1 January 1
Levy dates July 1 July 1
Due dates 50% on November 1 July 1
50% on February 1
Delinquent as of December 10 (for November due date) August 31 April 10 (for February due date
3)  Compensated absences
Vacation
Earned vacation and a portion of accumulated sick‐leave payable upon termination or retirement are accrued as compensated absences. The accrual includes the City’s share of payroll taxes. Regular employees earn vacation hours based on the number of years of continuous service. No more than 240 hours (340 hours after 10 years of continuous service) may be accumulated.

Sick Leave
Regular employees are given credit for eight (8) hours sick‐leave for each month of employment with unlimited accumulation. Each employee who has two or more years of service with the City and who separates from City service for any reason, except discharge for cause, is entitled to payment of the monetary equivalent of 30% of unused sick‐leave accrued to a maximum of 1,000 hours. This 30% is included in the compensated absences accrual.
4) Proprietary funds operating and non‐operating revenues and expenses Proprietary funds distinguish operating revenues and expenses from non‐operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the water and wastewater funds are charges to customers for sales and services. The C.V. Starr Center fund has three sources of revenue: property taxes, district sales tax, and user fees.

The water and wastewater funds also recognize as
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
62 1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued H.   Revenues and expenditures/expenses, Continued
operating revenue the portion intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues not meeting this definition are reported as non‐operating revenues and expenses.  Although Internal Service Funds are proprietary in nature, they are funded entirely by internal customers and reported as governmental activities.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued 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.

I.  Use of Estimates
The  preparation  of  financial  statements  in  conformity with accounting  principles  generally accepted  in  the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates.

J.  New and Closed Funds
During the course of each fiscal year funds may be closed and new funds opened. In FY 2020/20 no funds were closed.  The SWRCB (State Water Resources Control Board) grant fund was opened.

K.  Reclassifications
Certain amounts have been reclassified to provide for comparable results on a year to year basis.

L.  Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Authority’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date      June 30, 2020
Measurement Date     June 30, 2020
Measurement Period     July 1, 2018 to June 30, 2020
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
63 2.  CASH AND INVESTMENTS
At  June 30, 2021,  the City’s pooled cash and investments, classified by maturity, consisted of  the  following stated at fair value:

Fair
<1 1 to 3 3 to 5 Deposits Market Value
Cash equivalents and investments pooled
Pooled cash, at fair value
Cash in bank  ‐ $                      ‐ $                   ‐ $                      2,769,052 $         2,769,052 Petty cash ‐                         ‐                         ‐                         1,098                    1,098 Total pooled items ‐                         ‐                         ‐                         2,770,150            2,770,150 Pooled investments, at fair value
Interest obligations
Par Rate
$       1.3% ‐ 3.35% Certificates of Deposits 2,246,553 7,682,000         2,585,621         ‐                         ‐                             4,832,174 Money Market Funds 108,064                108,064
State of California Local Agency Investment Fund ‐                         ‐                         ‐                         12,929,575          12,929,575 Total pooled investments ‐ interest obligations 2,246,553         2,585,621         ‐                         13,037,639          17,869,813 Total cash equivalents and investments pooled 2,246,553 $      2,585,621 $      ‐ $                      15,807,789 $       20,639,963 $ Amounts reported in:

Governmental activities  (unrestricted) 7,391,263 $
Business‐type activities (unrestricted) 12,987,452
Business‐type activities (restricted) 108,064
Fiduciary activities 153,184
Total  20,639,963 $
Maturities (in years)
Weighted Average
Investment Type Fair Value Maturity (Years)
Certificates of Deposit 4,832,174 $        1.03
Money market funds 108,064               ‐
LAIF 12,929,575         ‐
Total fair value 17,869,813 $
Portfolio weighted average maturity 0.28
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
64 2.  CASH AND INVESTMENTS, Continued
California statutes authorize cities to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code, Section 53600, Chapter 4 – Financial Affairs. The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. The table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code of the City’s investment policy. During the year ended June 30, 2021, the City’s permissible investments included the following instruments:

Maximum Maximum
Maximum Percentage Investment
Authorized Investment Type Maturity of Portfolio in One Issuer Local Agency Investment Fund (State Pool) N/A Unlimited $50 Million U.S. Treasury Obligations 5 years Unlimited None
U.S. Government Agency Issues 5 years Unlimited None
Repurchase Agreements 90 days 10% None
Bankers' Acceptances (must be dollar denominated) 270 days 40% None Commercial Paper ‐ A rated minimum 180 days 15% None
Certificates of Deposits ‐ FDIC insured 5 years 50% None General obligations of any State or Political subdivision ‐ AA rated minimum 5 years 30% None Money market mutual funds holding ‐ Cash and U.S. Government Obligations N/A None None Per the City’s investment policy, if special circumstances arise that necessitate the purchase of securities beyond the five year limitation, the requests must be approved by the Council prior to purchase.

Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustees is governed by provisions of the debt agreements. The table below identifies the investment types that are authorized for investments held by bond trustees. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment
Investments Authorized by Debt Agreements Maturity of Portfolio in One Issuer U.S. Treasury Obligations 5 years None None
U.S. Government Agency Securities 5 years None None
Bankers Acceptance 270 days 40% 15%
Commercial paper 180 days 15% 15%
Money market mutual funds None None None

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
65 2.  CASH AND INVESTMENTS, Continued
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. 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.

Credit risk – As of June 30, 2021, the City’s investments in money market funds were rated AAA by Standard & Poor’s and Fitch Ratings, and Aaa by Moody’s Investors Service. The State of California Local Agency Investment Fund is not rated.

Concentration of credit risk – The City’s investment policy does not allow for an investment in any one issuer that is in excess of five percent of the government’s total investments. The investments made by the City Treasurer are limited to those allowable under State statutes as incorporated into the City’s Investment Policy, which is accepted annually by the City Council. There were no concentrations in any one issuer for the year.

The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF). LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments
Custodial credit risk – deposits. Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City 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 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. At June 30, 2021, the carrying amount of the City’s cash deposits (including fiduciary funds) was $2,769,052 of which $250,000 was covered by federal depository insurance and $2,519,052 was collateralized as required by State law (Government Code Section 53630), by the pledging financial institution with assets held in a common pool for the City and other governmental agencies, but not in the name of the City.

The California Government Code (Government Code Section 53630) requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit).  The fair 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.

As of June 30, 2021, the City’s investments were held by the City’s custodial agent, but not in the City’s name, and were insured up to specified limits by the Securities Investor Protection Corporation (SIPC) and supplemental private insurance up to a limit of $150 million. Investment balances equaled $17,869,813.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
66 2.  CASH AND INVESTMENTS, Continued
Custodial credit risk – investments.  Custodial credit risk – investment generally applied only to direct investments in marketable securities.  Custodial credit risk – investment does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools (such as Local Agency Investment Fund).

Investment in LAIF
The City is a voluntary participant in California Local Agency Investment Fund (LAIF), which is regulated by California Government Code Section under the oversight of the Local Investment Advisory Board (Board).

The Board consists of five members as designated by state statute, and is chaired by the State Treasurer who is responsible for day to day administration of LAIF.  The total amount invested by all public agencies as of June 30, 2021 was $37,066,592,514 of which the City had a balance of $12,929,575.  LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2021 has a portfolio with market valuation including accrued interest of $193,463,490,764. 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 pro‐rata 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.

3.  ACCOUNTS RECEIVABLE
Accounts receivable consisted of the following at June 30, 2021:

These amounts resulted in the following concentrations in receivables:

Other Governments  28%   Individuals/Business  72%

Amounts do not indicate a significant concentration (greater than 25%) with any single individual, business or agency.

Receivables
Governmental Activities
Taxes  1,386 $
Intergovernmental 914,889
Other  1,169,944
$                 2,086,219
Business‐type activities
Accounts Receivable 1,198,515 $
$                 1,198,515
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
67 4.  LOANS AND NOTES RECEIVABLE
The City periodically receives Community Development Block Grant (CDBG) funding through the State Housing and Community Development Department to provide housing and economic development loans to individuals and  businesses. Repayment  terms and interest  rates vary  depending  on  the  borrower’s  funding  needs and ability to repay the loan. Interest is accrued on the loans that bear interest.

Loans and notes receivable for the year ended June 30, 2021, consisted of the following:

Beginning Ending
June 30, 2020 Additions  Deletions  June 30, 2021
CDBG Revolving Loans 1,380,868 $      1,526 $          (55,967) $     1,326,427 $ Mendocino Coast Hospitality Center Loan             ‐ 904,292                  ‐                904,292 Rural Community Housing Development Corporation Loans             6,750 300,125              ‐                306,875 Employee Loans                 625 1,746                 ‐                2,371 Wastewater Enterprise Capacity fee loan                      ‐ ‐                  ‐                ‐ Total loans/notes receivable 2,587,031 $      8,901 $          (55,967) $     2,539,965 $ The following are descriptions of the loans and notes receivable outstanding as of June 30, 2021:

CDBG Revolving Loans – These are loans issued from CDBG grant funds received by the City or issued from unrestricted CDBG Program Income on hand. Loans are provided from CDBG Economic Development funding to assist local business that will provide or retain jobs. Business loans require repayment of interest and principal. Loans are also provided from CDBG Community Development funds to income‐qualified home owners in order to rehabilitate their homes. Terms of housing loans vary depending upon the homeowners’ income and may require payments of interest and principal; or interest only; or loans may be fully deferred for up to 30 years.

Mendocino Coast Hospitality Center Loan – On January 12, 2016, the Fort Bragg City Council adopted a Resolution approving the use of 2015 Community Development Block Grant (CDBG) funds for acquisition and rehabilitation of the vacant Old Coast Hotel for the benefit of Mendocino Coast Hospitality Center, Inc. (MCHC). The facility accommodates a variety of homeless and mental health services including transitional housing. The facility is owned and operated by MCHC. This loan is deferred for a term of 20 years. If various conditions are met during the term of the loan, the loan will be forgiven at the end of the 20 year term.

Rural Community Housing Development Corporation Loans – These loans are to the Rural Community Housing Development Corporation (RCHDC), a non‐profit organization for housing rehabilitation projects within the City.

Employee Loans – Employees have the option of entering into equipment purchasing loan plans with the City, which may be utilized to assist the employee to purchase equipment that may be used both on and off duty to improve the employee’s job performance.

Capacity Fees Loans –The Fort Bragg City Council approved a deferred payment of capacity fees for a new local business, Overtime Brewing.  The loan has a repayment term of 24 months and includes principal repayment plus interest at a rate of 1.14%.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
68 5.  CAPITAL ASSETS
Governmental capital asset activity for the year ended June 30, 2021, was as follows:

Balance Balance
June 30, 2020 Additions Deletions June 30, 2021
Governmental activities:

Nondepreciable assets:

Land 12,952,262 $      ‐ $                     ‐ $                     12,952,262 $ Construction in progress 2,291,055            245,166               ‐                        2,536,221 Total nondepreciable assets          245,166 15,243,317               ‐                        15,488,483 Depreciable assets:

Buildings 4,675,798            ‐                        ‐                        4,675,798 Machinery, equipment and vehicles 2,162,624            705,828               (78,614)                2,789,838 Infrastructure 34,413,370          ‐                        ‐                        34,413,370 Total depreciable assets          705,828 41,251,792               (78,614)                41,879,006 Total          950,994 56,495,109               (78,614)                57,367,489 Accumulated depreciation:

Buildings (3,284,803)           (109,992)              ‐                        (3,394,795) Machinery, equipment and vehicles (1,439,019)           (119,437)              76,732                  (1,481,724) Infrastructure (9,669,630)           (1,135,454)           ‐                        (10,805,084) Total accumulated depreciation        (1,364,883) (14,393,452)           76,732                  (15,681,603) Net depreciable assets          (659,055) 26,858,340              (1,882)                   26,197,403 Total net capital assets $      (413,889) 42,101,657 $           (1,882) $               41,685,886 $ Depreciation expense for capital assets was charged to functions as follows:

General government 92,470 $
Public safety 136,231
Public works 1,136,182
$            1,364,883
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
69 5.  CAPITAL ASSETS, Continued
Business‐type capital asset activity for the year ended June 30, 2021, was as follows:

Balance Transfers/ Balance
June 30, 2020 Additions Deletions Adjustmetns June 30, 2021 Business‐type activities
Nondepreciable assets:

Land 785,079 $         ‐ $                  ‐ $                ‐ $                   785,079 $ Construction in progress 18,118,805       547,173            ‐                    (17,732,       933,150 828) Total nondepreciable assets       547,173 18,903,884            ‐                    (17,732,       1,718,229 828) Depreciable assets:

Buildings 29,299,821       ‐                     ‐                    ‐                       29,299,821 Machinery, equipment and vehicles 6,753,001         ‐                     (         5,933 437,562)                  6,321,372 Infrastructure 20,248,293       1,397,150         (93,761)            17,726,895        39,278,577 Land improvements 542,303             ‐                     ‐                    ‐                       542,303 Total depreciable assets       1,397,150 56,843,418         (         17,732,828 531,323)        75,442,073 Total       1,944,323 75,747,302         (         ‐ 531,323)                       77,160,302 Accumulated depreciation:

Buildings (8,144,993)        (713,258)           ‐                    ‐                       (8,858,251) Machinery, equipment and vehicles (5,118,441)        (147,845)                     (27, 396,146               (4,898,023) 883) Infrastructure (9,778,359)        (918,594)           71,986             ‐                       (10,624,967) Land improvements (438,361)           (54,             ‐ 230)                    ‐                       (492,591) Total accumulated depreciation      (1,833,927) (23,480,154)                  (27, 468,132               (24,873,832) 883) Net depreciable assets       (436,777) 33,363,264           (63,191)            17,704,945        50,568,241 Total net capital assets $    110,396 52,267,148 $         (63,191) $        (27, $           52,286,470 883) $ Depreciation expense for capital assets was charged to functions as follows:

Water 319,552 $
Sewer 816,300
CV Starr Center 698,075
$               1,833,927

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
70 6.  ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued payroll and related liabilities consisted of the following at June 30, 2021:

Governmental Business‐type
Activities Activities Total
Accounts payable 631,665 $           511,200 $           1,142,865 $ Accrued payroll and related liabilities 151,501               31,449                182,950 Total 783,166 $           542,649 $           1,325,815 $ These amounts resulted in the following concentrations in payables:

Vendors  86%
Employees  14%
There were no further significant concentrations (greater than 25%) with any single vendor or employee.

7.  LONG‐TERM LIABILITIES
The following is a summary of changes in long‐term liabilities for the year ended June 30, 2021:

Balance Balance Due Within
July 1, 2020 Additions Retirements June 30, 2021 One Year Governmental Activities:

Compensated absences 501,392 $           118,371 $      (50,562) $           569,201 $           60,756 $ Landfill post‐closure 1,069,730           ‐                      (429,926)            639,804              211,595 CalPERS side fund 497,479              ‐                      (80,436)              417,043              114,491 Total governmental activities $        118,371 2,068,601 $      (560,924) $         1,626,048 $        386,842 $ Business‐type activities
Bonds payable:
2014 Water Revenue Refunding Bond 1,268,000           ‐                      (304,000)            964,000              312,000 2018 WW Plant Certificates of Participation 4,914,000           ‐                      (87,000)              4,827,000           89,000 Loans payable:

SDWRL 537,913              ‐                      (89,652)              448,261              44,826 SDWRL discount 96,756                 ‐                      (16,126)              80,630                 8,063 Total business‐type activity debt           ‐ 6,816,669                      (496,778)            6,319,891           453,889 Compensated absences 85,214                 20,043           (7,492)                 97,765                 7,492 Total business‐type activities $        20,043 6,901,883 $        (504,270) $         6,417,656 $        461,381 $ City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
71 7.  LONG‐TERM LIABILITIES, Continued
Governmental Activities
Caspar Landfill Closure and Post‐Closure Cost
The Caspar Landfill site was closed in 1995. State and federal laws and regulations require that the City place a final cover on its landfill when closed, and perform certain maintenance and monitoring functions at the landfill site for thirty years after closure. These costs are shared equally by the City and County of Mendocino.

At June 30, 2021, the City’s estimated liability for its share of landfill closure and post‐closure care costs was $1,069,730. This estimated total cost of the landfill closure and post‐closure care is based on the amount that would be paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired as of June 30, 2021, as determined by the last engineering study performed. However, the actual cost of closure and post‐closure care may change due to inflation, changes in technology, or changes in landfill laws and regulations.

The City has made a pledge of future user surcharge revenues for anticipated remaining expected costs, future inflation costs, and any additional costs (including debt service) that might arise from changes in post‐ closure requirements (due to changes in technology or more rigorous environmental regulations, for example).

Business‐type Activities
2014 Water Revenue Refunding Bonds
On June 5, 2014, the City issued $2,962,000 of Water Revenue Refunding Bonds bearing interest of 3.06% and payable semi‐annually on October 1 and April 1, maturing on October 1, 2023. These bonds were used to advance refund the 2004 California Statewide Communities Development Authority Bonds, which were issued originally to advance refund the 1993 COP’s, which had been used for various capital improvements to the City’s water system. The outstanding principal balance as of June 30, 2021 was $1,268,000. $2,891,751 from the 2014 Water Revenue Refunding Bonds was placed in an irrevocable trust that was used to pay off the 2004 California Statewide Communities Development Authority Bonds on July 7, 2014. The funding resulted in an economic gain (difference between the present value of the debt service payments on the old and new debts) of $201,814. The aggregate difference in debt service between the 2004 California Statewide Communities Development Authority Bonds and the 2014 Water Revenue Refunding Bonds was $234,793. The outstanding amount of the defeased debt was $2,855,000 as of June 30, 2014.

The City defeased the 2004 California Statewide Communities Development Authority Bonds by placing the proceeds of the 2014 Water Revenue Refunding Bonds in an irrevocable trust to provide for all future debt service payments on the 2004 California Statewide Communities Development Authority Bonds. Accordingly, the trust account assets and the liability of the defeased 2004 California Statewide Communities Development Authority Bonds are not included in the City’s financial statements.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
72 7.  LONG‐TERM LIABILITIES, Continued
2018 Wastewater Revenue Refunding Bonds
In 2018, the City issued $5,000,000 in Certificates of Participation as partial funding to acquire and construct the District’s Wastewater Treatment Facility.  The Certificates of Participation are secured by an Installment Sale agreement between the City and City of Fort Bragg Joint Powers Financing Authority (JPFA) with the JPFA acting as seller and the City as purchaser. The obligation is secured and payable from net revenues of the Wastewater Enterprise. The outstanding principal balance as of June 30, 2021 was $4,827,000.

Safe Drinking Water Revolving Loan (SDWRL)
In FY 2004/05, the City entered into a non‐interest bearing loan agreement with the State of California Department of Water Resources to finance the construction of a project to meet safe drinking water standards. The maximum amount of the loan cannot exceed $2,325,500, of which the City had borrowed $2,141,532. At June 30, 2021, the balance of the loan payable was $549,604. Loan principal payments of $52,889 are required semi‐annually on January 1st and July 1st for twenty (20) years commencing January 1, 2007.

Compensated Absences
The City records employee absences, such as vacation, illness, and holidays, for which it is expected that employees will be paid as compensated absences. The governmental activities compensated absences balance at June 30, 2021 was $569,201 with $60,756 expected to be paid within a year; The business‐type activities compensated absences balance at June 30, 2021 was $84,413 with $7,492 expected to be paid within a year.

CalPERS Side Fund Debt
Under the City’s contract with CalPERS the City is obligated to make certain payments to CalPERS in respect to retired public safety and miscellaneous employees under the Side Fund program of CalPERS which amortizes such obligations over a fixed period of time. The current annual interest rate imputed by PERS to side funds is

7.5%.  Debt service will be funded from the revenue of the general fund. The initial side fund obligation amount was $497,479, with a retirement in the amount of $80,436 for the year end June 30, 2021. The amount is paid in July of each year as provided by CalPERS, therefore no maturity schedule is available for this debt.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
73 7.  LONG‐TERM LIABILITIES, Continued
Debt Service, Continued
Future debt service for Business‐Type Activities at June 30, 2021, is as follows:

Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 2022 89,000 $                    95,650 $                      $              24,725 312,000 $               52,889 $                 ‐ $ 2023 91,000                        93,850                                           15,055 320,000                                    ‐ 105,778 2024 93,000                        92,010                                           5,080 332,000                                       ‐ 105,778 2025 95,000                        90,130                          ‐                                    ‐                                                   ‐ 105,778 2026 97,000                        88,210                          ‐                                    ‐                                                  105,778 2027‐2031 515,000                                           ‐ 410,850                                    ‐                                  52,890                     ‐ 2032‐2036 566,000                                           ‐ 356,840                                    ‐                                  ‐                                    ‐ 2037‐2041 626,000                                           ‐ 297,300                                    ‐                                  ‐                                    ‐ 2042‐2046 691,000                                           ‐ 231,510                                    ‐                                  ‐                                    ‐ 2047‐2051 761,000                                           ‐ 158,990                                    ‐                                  ‐                                    ‐ 2052‐2056 842,000                     78,860                          ‐                                    ‐                                  ‐                                    ‐ 2057‐2061 361,000                     7,250                             ‐                                    ‐                                  ‐                                    ‐ Total 4,827,000 $            2, $               001,450 $              44,860 964,000 $               $              ‐ 528,891 $ Due within one year 89,000 $                    95,650 $                      $              24,725 312,000 $               52,889 $                 ‐ $ Due after one year 4,738,000                1,                   905,800                  20,135 652,000                                    ‐ 476,002 Total 4,827,000 $            2, $               001,450 $              44,860 964,000 $               $              ‐ 528,891 $ Year Ending
June 30,
Principal Interest
2022 453,889 $                 $                  120,375 2023 516,778                                          108,905 2024 530,778                     97,090
2025 200,778                     90,130
2026 202,778                     88,210
2027‐2031 567,890                                          410,850 2032‐2036 566,000                                          356,840 2037‐2041 626,000                                          297,300 2042‐2046 691,000                                          231,510 2047‐2051 761,000                                          158,990 2052‐2056 842,000                     78,860
2057‐2061 361,000                     7,250
Total 6,319,891 $            2, $               046,310 Due within one year 453,889 $                 $                  120,375 Due after one year 5,866,002                1,                   925,935 Total 6,319,891 $            2, $               046,310 Total
2018 WW Plant Certificates
Of Participation Revolving Loan
2014 Water Revenue
Refunding Bonds
Safe Drinking Water
Business‐Type Activities
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
74 8.  NET POSITION/ FUND BALANCES
Net position (deficit)
Governmental Business-type
Activities Activities Total
Net investment in capital assets 41,685,886 $ 46,331,468 $ 88,017,354 $ Restricted 2,947,301 108,064 3,055,365
Unrestricted (deficit) (4,140,106) 12,276,914 8,136,808 Total 40,493,081 $ 58,716,446 $ 99,209,527 $
Restricted  balances  are  for  the  same  purposes  as  fund  balance  restrictions  because  external  restriction requirements are the same. See descriptions of the restrictions below.

Fund Balance
Non‐spendable, Restricted and Committed fund balance consisted of the following at June 30, 2021:

Nonspendable:

Prepaid & Inventory 4,165 $
Loans/ Notes Receivable 2,371
Total Nonspendable $              6,536
Restricted:

Governmental Funds:

Special Sales Tax 2,496,346 $
Asset Forfeiture 394,953
Gas tax 54,668
Federal & State Grant Funds  1,334
Total Restricted $      2,947,301
Committed:

Governmental Funds:

Operating reserve 1,989,419 $
Recession reserve 489,929
Litigation reserve 200,000
Total Committed $      2,679,348
The following describe the purpose of each non‐spendable, restricted, and committed category used by the City:

Non‐spendable
 Inventory & Prepaids – represents non‐spendable amounts classified as inventory or a prepaid expense.
 Loans/Notes Receivable – represents loans to employees.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
75 8.  NET POSITION/ FUND BALANCES, Continued
Restricted
 Special Sales Tax – represents amounts restricted by voter approved ordinance for street repairs.  Asset Forfeiture – represents amounts restricted by State and Federal guidelines to support law enforcement.
 Gas Tax – represents amounts restricted for street maintenance purposes as defined in Sections 2105, 2106, 2107 and 2107.5 of the Streets and Highway Code as well as amounts from the Road Maintenance and Rehabilitation Account (RMRA).
 Federal and State Grants – represents restricted amounts received from State and Federal Grants for various city programs.

Committed
 Reserves – represents amounts  designated  by  the  City  Council  for  future  contingencies, which include a $1,469,787 operating  reserve, a $489,929  recession  reserve and a $200,000 litigation reserve.

Fund Balance Deficits
Deficit fund balances consisted of the following:

Funds June 30, 2021
Major Funds:

Street Resurfacing Capital Projects Fund (26,132) $
Non‐Major Funds:

Capital Project Funds:

Coastal Trail (220,813)
Total (246,945) $
The above deficit fund balances have occurred due to the spending of funds prior to the receipt of revenues (cost reimbursements). The Fund balances will be restored in the near future as revenues are received.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
76 9.  INTERFUND TRANSACTIONS
Due to and from balances result from the time lag between the dates that (1) interfund goods and services are provided or reimbursable expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made.

Due to and due from other funds consisted of the following as of June 30, 2021:

Due from Due to
Other Funds  Other Funds
Governmental Funds
Major Funds:

General Fund 733,469 $             ‐ $
Street Resurfacing Capital Projects ‐                             26,132 Total Major Funds 733,469                26,132
Nonmajor Funds:

Special Revenue Funds
RMRA  ‐                             44,549
MCOG Overall Work Plan ‐                             41,369 State and Federal Grant Funds:

CDBG Super NOFA ‐                             94,679
HCD HOME Grant ‐                             464,980
Other State Grants ‐                             18,861 CDBG Grant ‐                             17,093
CDBG Grant COVID ‐                             5,916
Capital Project Funds:

Coastal Trail  ‐                             19,890
Total Nonmajor Funds ‐                             707,337 Total $             733,469 733,469 $
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
77 9.  INTERFUND TRANSACTIONS, Continued
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them, and (2) use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.

Transfers consisted of the following at June 30, 2021:

Transfers In Transfers Out
Governmental Funds
Major Funds:

General Fund 465,962 $ 486,624 $
Street Resurfacing Capital Projects 228,274 118,400
Total Major Funds 694,236 605,024
Non-major Funds:

Special Revenue Funds
RMRA - 200,000
Developer Deposit Account - 17,302
State and Federal Grant Funds
STP D1 Streets and Highway Allocation - 81,259
Other State Grants - 1,499,882
Capital Projects Fund
Coastal Trail 171,385 -
Total Non-major Funds 171,385 1,798,443
Internal Service Funds
Fleet Services 636,938
Total Internal Service Funds 636,938 -
Total Governmental Funds 1,502,559 2,403,467
Proprietary Funds
Major Enterprise Funds
Water 135,619 -
Sewer - 1,036,527
Total Proprietary Funds 1,036,527 135,619
Total Transfers $ 2,539,086 $ 2,539,086

10.  RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City provides property, liability, and worker’s compensation insurance through the Redwood Empire Municipal Insurance Fund (REMIF), a public entity risk pool currently operating as a common risk management and self‐insurance program for fifteen Northern California municipalities. The City pays quarterly and annual contributions and premiums to REMIF for its general insurance and self‐insurance coverage. The joint powers formation agreement of the REMIF provides that the REMIF will self‐insure through member contributions and collect premiums for insurance and reinsurance for liability insurance and other coverage.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
78 10.  RISK MANAGEMENT, Continued
REMIF is a risk sharing, self‐funded pool which is a direct purchase program. The REMIF cost sharing pool provides coverage between the City’s deductible and $500,000 (liability program) and $1,000,000 (workers’ compensation program). Losses in excess of the REMIF cost sharing pool limits are covered by REMIF through the California Joint Powers Risk Management Authority for liability and commercial insurance policies for workers' compensation. Loss limits and deductibles are per occurrence as detailed on the table below. Losses exceeding these limits are the responsibility of the City. Settled claims resulting from these risks have not exceeded insurance coverage in any of the past three fiscal years.

Insurance Program Loss Limits Deductibles
Property 400,000,000 $           $5,000 ‐ $10,000
Boiler and Machinery 100,000,000              100,000
Liability 40,000,000                5,000 ‐ 25,000
Earthquake and Flood 20,000,000                100,000 or 5% of value of building
Auto Physical Damage Stated Value 5,000 ‐ 10,000
Workers' Compensation Statutory 5,000 ‐ 10,000
Participating members of REMIF do not have a refundable deposit, and no dividends are paid. No refunds were received by the City in the Liability program. The annual premiums paid to REMIF in   FY 2020/21 were as follows:

Insurance Program Premium
Workers' Compensation 252,082 $
Liability 195,865
Property, Flood & Earthquake 172,300
Auto Physical Damage 13,528
$                    633,775
Claims Paid by the City for the 2020/21 fiscal year:

Insurance Program Claims
Workers' Compensation 21,578 $
Liability and Property 9,461
$                       31,039
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
79 11.  PUBLIC EMPLOYEES’ RETIREMENT SYSTEM
General Information about the Pension Plans
Plan Descriptions ‐ All qualified permanent and probationary employees are eligible to participate in the City's separate Safety (police 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 (CaIPERS). 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 full time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non‐ duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law.

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

Miscellaneous PEPRA Miscellaneous
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2% @ 55 2% @ 62
Benefit vesting schedule 5 years service  5 years service Benefit payments monthly for life monthly for life
Retirement age 55 52 ‐ 67
Monthly benefits, as a % of eligible compensation 1.4% ‐ 2.0% 1.0% to 2.5% Required employee contribution rates 6.90% 6.50%
Required employer contribution rates 11.199% 7.874%
Safety ‐ Police PEPRA Safety ‐ Police
Hire date
Prior to
January 1, 2013
On or after
January 1, 2013
Benefit formula 2% @ 50 2.7% @ 57
Benefit vesting schedule 5 years service  5 years service Benefit payments monthly for life monthly for life
Retirement age 50 50 ‐ 57
Monthly benefits, as a % of eligible compensation 2% 2.0% to 2.7% Required employee contribution rates 8.94% 12.00%
Required employer contribution rates 18.152% 13.044%
Fire Safety
Hire date
Prior to
January 1, 2013
Benefit formula 3% @ 50
Benefit vesting schedule 5 years service
Benefit payments monthly for life
Retirement age 50
Monthly benefits, as a % of eligible compensation 2.00% Required employee contribution rates 0%
Required employer contribution rates 0%
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
80 11.  PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Contributions ‐ Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CaIPERS. 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.

For the year ended June 30, 2021, the contributions recognized as part of pension expense for each Plan were as follows:

Miscellaneous Plans Safety  Plans
Contributions ‐ employer 540,516 $                              $                             558,561 Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2021, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows
Proportionate Share
of Net Pension Liability
Miscellaneous Plans 5,488,390 $
Safety Plans 5,192,221
Total Net Pension Liability 10,680,611 $
The City's net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2020, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2018 rolled forward to June 30, 2020 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long‐term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. At June 30, 2016 CalPERS combined the Miscellaneous Plan and PEPRA Miscellaneous Plan for purposes of calculating net pension liability.  Likewise the Safety‐Police Plan, PEPRA Safety‐Police Plan and Safety‐Fire Plans were combined for purposes of calculating net pension liability. The City’s proportionate share of the net pension liability for each Plan as of June 30, 2020 and 2021 was as follows:

Mi scellaneous Sa fe ty ‐ Police Total
Proportion ‐ June 30, 2020 0.12508% 0.07899% 0.09700%
Proportion ‐ June 30, 2021 0.13012% 0.07793% 0.09816%
Change ‐ Increa se/(Decrea se ) 0.00504% ‐0.00106% 0.00116% City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
81 11.  PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
For the year ended June 30, 2021, the City recognized pension expense of $1,028,169 for the Miscellaneous Plan and $684,949 for the Safety Plan. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred Deferred Deferred Deferred Deferred
Outflows  Inflow  Outflows  Inflow  Outflows  Inflow
of Resources of Resources of Resources of Resources of Resources of Resources Changes in assumptions ‐ $                 39,145 $         ‐ $                 17,295 $         ‐ $                 56,440 $ Differences between expected and actual
experiences           ‐ 282,833                   402,630           ‐                   685,463           ‐ Differences between projected and actual
investment earnings 163,041           ‐                   112,849           ‐                   275,890           ‐ Differences between the employer's
contributions and proportionate share of the                     294,338 ‐          8,885                62,104             8,885                356,442 Change in employer's proportion           ‐ 241,588                   ‐                    52,323             241,588           52,323 Pension contributions subsequent to
measurement date           ‐ 540,516                   558,561           ‐                   1,099,077        ‐ Total 1,227,978 $     333,483 $       1,082,925 $     131,722 $       2,310,903 $     465,205 $ Miscellaneous Plan Safety Plan Total
$1,099,077  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 ended  June 30, 2022.    Contributions made  after  the measurement  date  of  the  net  pension/OPEB  liability  or  collective  net pension/OPEB liability but before the end of the City’s fiscal year will be recognized as a reduction of the net pension/OPEB liability/ or collective net pension/OPEB liability in the subsequent fiscal year rather than in the current  fiscal  year.    Other  amounts  reported  as  deferred  outflows  of  resources  and  deferred  inflows  of resources related to pensions will be recognized as pension expense as follows:

Fiscal Year Ending June 30: Miscellaneous Safety Total
2022 37,745 $             48,680 $       86,425 $
2023 127,178              164,957        292,135
2024 110,857              122,460        233,317
2025 78,199                56,544          134,743
2026 ‐                       ‐                ‐
Thereafter ‐                       ‐                ‐
$           392,641 353,979 $     746,620 $
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
82 11.  PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Actuarial Assumptions ‐The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Safety ‐ Police
PEPRA ‐
Miscellaneous
PEPRA Safety ‐
Police Fire Safety
Valuation Date 30‐Jun‐19 30‐Jun‐19 30‐Jun‐19 30‐Jun‐19 30‐Jun‐19 Measurement  30‐Jun‐20 30‐Jun‐20 30‐Jun‐20 30‐Jun‐20 30‐Jun‐20 Actuarial Cost Method
Actuarial Assumptions:

Discount Rate 7.15% 7.15% 7.15% 7.15% 7.15%
Inflation 2.625% 2.625% 2.625% 2.625% 2.625%
Projected Salary Increase Varies by entry age and service Mortality
Entry‐Age Normal Cost Method
Derived using CalPERS' Membership Data for all Funds
The underlying mortality table used was developed based on CalPERS’ specific data.  The table includes 20 years of mortality improvements  using Society  of Actuaries Scale BB.   For more  details,  please  refer  to  the  2014 experience study report.

All other actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial experience  study  for  the  fiscal  years  1997  to  2011,  including  updates  to  salary  increase,  mortality  and retirement rates.  The Experience Study can be obtained at CalPERS’ website under Forms and Publications.

Discount Rate ‐ The discount rate used to measure the total pension liability was 7.25 percent. To determine whether the municipal bond rate should be used in the calculation of the discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. Therefore, the current 7.25 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long‐term expected discount rate of 7.25 percent is applied to all plans in the Public Employees' Retirement Fund (PERF). The cash flows used in the testing were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. The stress test results are presented in a detailed report called "GASB Crossover Testing Report" that can be obtained at CalPERS website under the GASB 68 section.

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, staff took into account both short‐term and long‐term market  return  expectations  as  well  as  the  expected  pension  fund  (PERF)  cash  flows.  Taking  into  account historical returns of all the Public Employees Retirement Funds' asset classes (which includes the agent plan and two cost‐sharing plans or PERF A, B, and C funds), expected compound (geometric) returns were calculated over the short‐term (first 10 years) and the long‐term (11‐60 years) using a building‐block approach. Using the expected nominal returns for both short‐term and long‐term, the present value of benefits was calculated for each PERF fund.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
83 11.  PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
The expected rate of return was set by calculating the 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 rounded down to the nearest one quarter of one percent.

The table below reflects the long‐term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation.

The target allocation shown was adopted by the Board effective on July 1, 2014.

Asset Class
Current Target
Allocation
Real Return
Years 1 ‐ 101
Real Return
Year 11+2
Global Equity 47.0% 4.90% 5.38%
Global Fixed Income 19.0% 0.80% 2.27%
Inflation Sensitive 6.0% 0.60% 1.39%
Private Equity 12.0% 6.60% 6.63%
Real Estate 11.0% 2.80% 5.21%
Infrastructure and Forestland 3.0% 3.90% 5.36%
Liquidity 2.0% ‐0.55% ‐90.00%
(1) An expected inflation of 2.5% used for this period. (2) An expected inflation of 3.0% used for this period.

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:

Discount Rate
‐1%
Current
Discount Rate
Discount Rate
+1%

6.15% 7.15% 8.15%
Employer's Net Pension Liability/(Asset) ‐ Miscellaneous 8,405,5              5,488,390 69          3,078,016 Employer's Net Pension Liability/(Asset) ‐ Safety 7,538,685              5,192,221          3,266,725 Employer's Net Pension Liability/(Asset) ‐ Total 15,944,254 $         10,680,611 $    6,344,741 $ Pension Plan Fiduciary Net Position ‐ Detailed information about each pension plan's fiduciary net position is available in the separately issued CalPERS financial reports.

Note: At June 30, 2016 CalPERS combined the Miscellaneous Plan and PEPRA Miscellaneous Plan for purposes of calculating net pension liability.  Likewise the Safety‐Police Plan, PEPRA Safety‐Police Plan and Safety‐Fire Plans were combined for purposes of calculating net pension liability.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
84 12.  OTHER POST EMPLOYMENT BENEFITS (OPEB)
Plan Description
The City offers its employees a post‐retirement health program, a Single Employer plan, which includes medical and dental coverage. Upon retirement for service or disability, employees hired prior to July 1, 2011 (January 1, 2012 for Fort Bragg Police Officer Association members) retiring directly from service at age 50 or over with 10 years of service may continue coverage for themselves and their spouse’s (to whom they are married at retirement) as detailed below. Currently 19 employees meet those eligibility requirements.

Expenditures for these post‐retirement benefits are recognized as monthly premiums are paid. During the fiscal year ended June 30, 2021, expenditures of $269,166 were recognized for the cost of these post‐ retirement benefits. The OPEB plan does not issue a separate financial report.

The City pays portions of the premiums dependent on bargaining group and employee hire date as follows:

Tier 1: For retirees hired before January 1, 1992, the City pays the full cost of medical and dental premium for the former employee. In addition, the City pays a percentage of the spouse’s medical plan premium starting at the retiree’s age 60. The percentage is 10% for each year of service after 10 years, reaching 100% for those retiring with 19 or more years of service. In addition, the spouse may participate in the dental program‐but at their own cost.

Tier 2: For retirees hired after January 1, 1992 and before July 1, 2003 (July 1, 2004 for Fort Bragg Police Officer Association members), the City pays the full cost of medical and dental premiums for the former employee only.

Tier 3: For retirees hired after July 1, 2003 (July 1, 2004 for Fort Bragg Police Officer Association members) and before July 1, 2007, the City pays the full cost of medical and dental premiums for the former employee until age 65 when Medicare becomes payable. Thereafter, coverage is limited to a supplemental prescription drug plan, which is paid for by the City.

Tier 4: For retirees hired after July 1, 2007 and before July 1, 2011 (January 1, 2012 for Fort Bragg Police Officer Association members), the retiree only may remain in the City’s health and dental plan until age 65, but at their own cost.

Tier 5: For retirees hired on or after July 1, 2011 (January 1, 2012 for Fort Bragg Police Officer Association members), the retiree and spouse may not participate in the City’s health plans.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
85 12.  OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued Employees Covered by benefit terms
At June 30, 2021, the following employees were covered by the benefit terms:

Active employees  16
Inactive employees or beneficiaries currently receiving benefits  41 Inactive employees entitled to, but not yet receiving benefits  ‐ Total Number of participants   57
City Contribution to the Plan
The Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employee bargaining units and may be amended by agreements between the City and the bargaining units. The annual contribution is based on the actuarially determined contribution. For the fiscal year ended June 30, 2021, the City’s cash contributions were $5,000 in payments to the trust, $384,407 cash benefit payments, and the estimated implied subsidy was $36,000 resulting in total payments of $425,407.

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2020 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2020 that was rolled forward to determine the June 30, 2021 total OPEB liability, based on the following actuarial methods and assumptions:

Actuarial Valuation Date June 30, 2019
Contribution Policy Pay benefits and pre‐fund annual $5,000 minimum contribution and additional amounts subject to budgetary surplus from prior fiscal year through CERBT asset Allocation Strategy 1, subject to maximum ADC Discount Rate 6.75% at June 30, 2019

6.75% at June 30, 2018
Expected Long‐Term Rate of
Return on Investments
Same as discount rate. Plan assets projected to be sufficient to pay all benefits from trust
General Inflation 2.75% per annum
Mortality, Retirement,
Disability, Termination
CalPERS 1997‐2015 experience study
Mortality Improvement Mortality projected fully generational with Scale MP‐2018 Medical Trend Non‐Medicare ‐ 7.25% for 2021, decreasing to an ultimate rate of 4.0% in 2076 and later years
Medicare ‐ 6.3% for 2021, decreasing to an ultimate rate of 4.0% in 2076 and later years
Municipal Bond Rate N/A
Participation at Retirement
Tier 1‐3 Actives: 100% elect medical and dental
Tier 4 Actives: 75% elect medical and dental
Actuarial Assumptions:

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
86 12.  OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued The long‐term expected rate of return on OPEB plan investments was determined using a building‐ block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long‐term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Target Allocation
CERBT Strategy 1
Asset Class Component
Global Equity 57% 4.82%
Fixed Income 27% 1.47%
TIPS 5% 1.29%
Commodities 3% 0.84%
REITs 8% 3.76%
100%
Expected Real
Rate of Return
Discount Rate
The discount rate used to measure the total OPEB liability was 6.75 percent. The projection of cash flows used to determine the discount rate assumed that Authority contributions will be made at rates equal to the actuarially determined contribution rates. Based on those assumptions, the OPEB plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries. Therefore, the long‐term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability.

Changes in the OPEB Liability
The changes in the net OPEB liability for the Plan are as follows:

Total OPEB
Liability
Fiduciary Net
Position
Net OPEB
Liability
Balance at 6/30/2020* 5,778,269 $         2,591,182 $           3,187,087 $ Changes for the year
Service Cost 81,253                  ‐                                81,253 Interest 383,562                ‐                                383,562 Difference between actual
and expected experience ‐                              ‐                                ‐ Assumption changes (96,029)                 ‐                                (96,029) Contributions ‐ employer ‐                              359,262                  (359,262) Contributions ‐ employee ‐                              ‐                                ‐ Net investment income ‐                              91,502                    (91,502) Benefit payments (354,262)              (354,262)                ‐ Administrative expenses ‐                              (1,266)                     1,266 Net Changes 14,524                  95,236                    (80,712) Balance at 6/30/2021** 5,792,793 $         2,686,418 $           3,106,375 $ *Mea s urement da te 6/30/2019
** Mea s urement da te 6/30/2020
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
87 12.  OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The discount rate used for the fiscal year end 2021 is 6.75%. The following presents the net OPEB liability of the City if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020:
1% Decrease Current Rate 1% Increase
Change in Discount Rate 5.75% 6.75% 7.75%
Net OPEB Liability 3,772,590 $         3,106,375 $         2,547,047 $ Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the net OPEB liability of the City if it were calculated using health care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2020 (Healthcare Cost Trend Rate was assumed to start at 7.5% and grade down to 4% for years 2076 and thereafter):

Change in Healthcare Cost Trend Rate 1% Decrease Current Trend 1% Increase Net OPEB Liability 2,464,912 $         3,106,375 $         3,874,580 $ Recognition of Deferred Outflows and Deferred Inflows of Resources Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The recognition period differs depending on the source of the gain or loss:

Net difference between projected and
actual earnings on OPEB plan
investments
All other amounts
5 years
Expected average remaining service
lifetime (EARSL) (6.0 Years at June 30, 2020)
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
88 12.  OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2021, the City recognized OPEB expense of $289,198. As of fiscal year ended June 30, 2021, the City reported deferred outflows of resources related to OPEB from the following sources:

Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Differences between expected and actual
experience ‐ $                      143,652 $
Changes in assumptions 109,252                 66,929
Net difference between projected and actual
earnings on plan invesments 54,070                   ‐
Employer contributions made subsequent to the
measurement date 425,407                 ‐
Total $             210,581 588,729 $
The $425,407 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2020 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2022. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Fiscal Year
Ended June 30,
Deferred
Outflow/(Inflows)
of Resources
2022 (42,673)
2023 (31,925)
2024 10,664
2025 16,675
2026 ‐
Thereafter ‐

13.  SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY

On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Fort Bragg that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
89 13.  SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 9, 2012 the City Council elected to become the Successor Agency for the former Redevelopment Agency (RDA) in accordance with the Bill as part of City resolution number 3504‐2012.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011), all redevelopment agencies in the State of California were dissolved and ceased to operate as legal entities as of February 1, 2012. As allowed under Section 34176(a) of the Bill, the City elected to retain the housing functions previously performed by the former RDA. The assets and activities for the Successor Agency Housing fund continue to be reported in the City’s governmental fund financial statements.

The remaining assets, liabilities, and activities of the dissolved RDA, are reported in the Successor Agency fiduciary fund (private purpose trust fund) in the financial statements of the City.

The transfer of the assets and liabilities of the former RDA as of February 1, 2012 (effectively the same date as January 31, 2012) from governmental funds of the City to fiduciary funds was reported as an extraordinary item in the governmental fund financial statements in FY 2011/12.

Long‐term Liabilities
The following is a summary of changes in long‐term liabilities for the year ended June 30, 2021:

Balance Balance Due Within
June 30, 2020 Additions Retirements June 30, 2020 One Year Trust Activities:
2015 Refunding Tax Allocation Bonds 3,340,000 $      ‐ $                  (160,000) $      3,180,000 $        165,000 $ 2015 Refunding Tax Allocation Bonds Discount (27,541)             ‐                     1,697               (25,844)                (1,620) Total trust fund debt $      ‐ 3,312,459 $                  (158,303) $      3,154,156 $        163,380 $ Deferred outflows:
2015 Refunding Tax Allocation Bonds Deferred
Loss 80,090               (4,935)              75,155                 4,711 City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
90 13.  SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued 2015 Refunding Tax Allocation Bonds
In 2015 the former Fort Bragg Redevelopment Agency issued $4,040,000 of Tax Allocation Bonds for the purpose of refunding $4,005,000 of outstanding 2004 Tax Allocation Bonds and making funds available for future capital projects. The refunding took advantage of lower interest rates which were available. The refunding resulted in a difference between the reacquisition price and the carrying amount of the old debt, which has been deferred in accordance with GASB Statement No. 23. Deferred amounts for the loss on refunding and the original discount associated with the issuance of the 2015 Bonds are being amortized over the life of the 2015 issue using the straight line method.

The Bonds bear annual interest at rates varying between 2.00% and 3.25%. The Bonds were issued as a fully registered note in denominations of $5,000. Interest on the bonds are payable semi‐annually each September 1 and March 1. Principal is paid in annual installments each September 1, 2016, through the fiscal year 2037 in amounts ranging from $90,000 through $250,000. The outstanding principal balance as of June 30, 2021 was $3,335,000.

Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 2022 165,000                   89,900                        (1,620)                    ‐                             163,380                 89,900 2023 170,000                   86,550                        (1,620)                    ‐                             168,380                 86,550 2024 165,000                   83,200                        (1,620)                    ‐                             163,380                 83,200 2025 175,000                   79,800                        (1,620)                    ‐                             173,380                 79,800 2026 175,000                   75,425                        (1,620)                    ‐                             173,380                 75,425 2027‐2031 960,000                   293,650                     (8,100)                    ‐                             951,900                 293,650 2032‐2036 1,120,000                133,800                     (8,100)                    ‐                             1,111,900             133,800 2037‐2041 250,000                   4,063                          (1,544)                    ‐                             248,456                 4,063 Total 3,180,000 $             846,388 $                  (25,844) $               ‐ $                         3,154,156 $          846,388 $ Due within one year 165,000 $                89,900 $                    (1,620) $                 ‐ $                         163,380 $              89,900 $ Due after one year 3,015,000                756,488                     (24,224)                  ‐                             2,990,776             756,488 Total 3,180,000 $             846,388 $                  (25,844) $               ‐ $                         3,154,156 $          846,388 $ Fiduciary Activities
2015 Refunding
Bonds
2015 Refunding Bonds
Discount Total

14.  COMMITMENTS AND CONTINGENCIES
Litigation
The City is not involved in any active litigation at present.

Grants and Allocations
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal and state government. During the course of FY 2020/20 no claims were disallowed.

Commitments
The City’s unexpended contractual commitments as of June 30, 2021 are listed in note 1 on page 60.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
91 15.  NEW ACCOUNTING PRONOUNCEMENTS
The GASB has issued Statement No. 87, "Leases."  The requirements of this Statement are effective for reporting periods beginning after December 15, 2020. The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources 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 Statement, 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, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The City will implement this statement, as applicable, to its financial statements for the year ending June 30, 2022.

The GASB has issued Statement No. 89, "Accounting for Interest Cost Incurred before the End of a Construction Period."  The requirements of this Statement are effective for reporting periods beginning after December 15, 2020. Earlier application is encouraged. The objectives of this Statement are (1) to enhance the relevance and comparability of information about capital assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred before the end of a construction period. The City will implement this statement, as applicable, to its financial statements for the year ending June 30, 2022.

The GASB has issued Statement No. 91, "Conduit Debt Obligations." The requirements of this Statement are effective for reporting periods beginning after December 15, 2020. Earlier application is encouraged. The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This Statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. The City will implement this statement, as applicable, to its financial statements for the year ending June 30, 2023.

The GASB has issued statement No. 92, “Omnibus 2020”. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. The City will implement this statement, as applicable, to its financial statements for the year ending June 30, 2022.

The GASB has issued statement No. 93, “Replacement of Interbank Offered Rates”. The objective of this Statement is to address the accounting and financial reporting effects that result from the replacement of IBORs with other reference rates in order to preserve the reliability, relevance, consistency, and comparability of reported information. The City will implement this statement, as applicable, to its financial statements for the year ending June 30, 2022.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2021
92 15.  NEW ACCOUNTING PRONOUNCEMENTS, CONTINUED
The GASB has issued statement No. 94, “Public‐Private and Public‐Public Partnerships and Availability Payment Arrangements”. The objective of this Statement is to better meet the information needs of financial statement users by improving the comparability of financial statements among governments that enter into PPPs and APAs and by enhancing the understandability, reliability, relevance, and consistency of information about PPPs and APAs. The City will implement this statement, as applicable, to its financial statements for the year ending June 30, 2023.

The GASB has issued statement No. 96, “Subscription‐Based Information Technology Arrangements”. The objective of this Statement is to better meet the information needs of financial statement users by (a) establishing uniform accounting and financial reporting requirements for SBITAs; (b) improving the comparability of financial statements among governments that have entered into SBITAs; and (c) enhancing the understandability, reliability, relevance, and consistency of information about SBITAs. The City will implement this statement, as applicable, to its financial statements for the year ending June 30, 2023.

The GASB has issued statement No. 97, “Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans”. The primary objectives of this Statement are to (a) increase consistency and comparability related to the reporting of fiduciary component units in circumstances in which a potential component unit does not have a governing board and the primary government performs the duties that a governing board typically would perform; (b) mitigate costs associated with the reporting of certain defined contribution pension plans, defined contribution other postemployment benefit (OPEB) plans, and employee benefit plans other than pension plans or OPEB plans (other employee benefit plans) as fiduciary component units in fiduciary fund financial statements; and (c) enhance the relevance, consistency, and comparability of the accounting and financial reporting for Internal Revenue Code (IRC) Section 457 deferred compensation plans (Section 457 plans) that meet the definition of a pension plan and for benefits provided through those plans.

16.  PANDEMIC EFFECTS
The COVID‐19 pandemic, whose effects first became known in January 2020, is having a broad and negative impact on commerce and financial markets around the world. The United States and global markets experienced significant declines in value resulting from uncertainty caused by the pandemic. The City is closely monitoring its investment portfolio and its liquidity and is actively working to minimize the impact of these declines. The extent of the impact of COVID‐19 on the City’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak and its impacts on the City’s employees, and vendors, all of which at present, cannot be determined. Accordingly, the extent to which COVID‐19 may impact the City’s financial position and changes in net position, fund balance and cash flows is uncertain, and the accompanying financial statements include no adjustments relating to the effects of this pandemic.

REQUIRED SUPPLEMENTARY INFORMATION
93 City of Fort Bragg, California
for the Measurement Periods Ended June 30,
2021 2020 2019 2018
Total OPEB Liability
Service Cost $ 104,512 81,253 $ 111,530 $ 119,019 $
Interest on the total OPEB liability 378,816 383,562 366,137 353,775 Experience (Gains)/Losses (287,306) - - -
Changes of benefit terms - - - -
Changes of assumptions 218,506 (96,029) - -
Benefit payments (287,648) (354,262) (277,993) (286,331) Net change in total OPEB liability 14,524 126,880 199,674 186,463 Total OPEB liability ‐ beginning 5,651,389 5,778,269 5,451,715 5,265,252 Total OPEB liability ‐ ending (a) $ 5,778,269 5,792,793 $ 5,651,389 $ 5,451,715 $ Plan fiduciary net position
Contributions ‐ employer $ 292,648 359,262 $ 492,993 $ 534,256 $ Contributions ‐ employee - - - -
Actual investment income 91,502 150,805 164,052 172,839 Administrative expense (1,266) (522) (3,826) (883)
Benefit payments (354,262) (287,648) (277,993) (286,331) Net change in plan fiduciary net position 155,283 95,236 375,226 419,881 Plan fiduciary net position ‐ beginning 2,435,899 2,591,182 2,060,673 1,640,792 Plan fiduciary net position ‐ ending (b) $ 2,591,182 2,686,418 $ 2,435,899 $ 2,060,673 $ Net OPEB liability ‐ ending (a) ‐ (b) $ 3,187,087 3,106,375 $ 3,215,490 $ 3,391,042 $ Covered payroll 1,132,693 $ 1,834,372 $ 2,370,484 $ 2,197,777 $ Net OPEB liability as a percentage of
covered payroll 274.25% 173.74% 135.65% 154.29%
Notes to Schedule
1) GASB 75 requires presentation of the 10‐year history of changes in the Net OPEB Liability. Additional years will be added as they become available.

Required Supplementary Information - Schedule of Changes in the Net OPEB Liability and Related Ratios
94 City of Fort Bragg, California
Required Supplementary Information - Net OPEB Liability Schedule of Contributions June 30, 2021
Fiscal Year Ended June 30, 2021 2020 2019 2018
Actuarially Determined Contribution (ADC) 348,790 $ 374,658 $ 375,390 $ 559,726 $ Contributions in relation to the ADC 425,407 359,262 292,648 492,993 Contribution deficiency ( excess) (76,617) $ 15,396 $ 82,742 $ 66,733 $ Covered payroll 1,132,693 1,893,338 1,834,372 2,730,484 Contributions as a percentage of covered payroll 37.56% 18.98% 15.95% 18.06% Notes to Schedule
1) GASB 75 requires presentation of the 10‐year history of changes in the Net OPEB Liability. Additional years will be added as they become available.
95 City of Fort Bragg, California
Required Supplementary Information - Schedule of Contributions Miscellaneous Plan
Last 10 Fiscal Years*
2021 2020 2019 2018 2017
Contractually required contribution (actuarially
determined) $ 514,099 540,516 $ 455,093 $ 430,051 $ 392,300 $ Contributions in relation to the actuarially
determined contributions (514,099) (540,516) (394,321) (430,051) 392,300 Contribution deficiency (excess) - $ - $ 60,772 $ - $ 784,600 $ Covered payroll $ 2,661,903 2,327,258 $ 2,833,921 $ 2,641,425 $ 2,598,675 $ Contribution as a percentage of covered-employee
payroll 23.23% 19.31% 16.06% 16.28% 15.10%
Notes to Schedule
* At June 30, 2016 CalPERS combined the Miscellaneous Plan and PEPRA Miscellaneous Plan for purposes of calculating net pension liability. Due to the change in methodology, comparisons to prior years 2014 and 2015 have been removed.
1) Covered payroll represents compensation earnable and pensionable compensation. Only compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included. * Fiscal year 2014 was the first year of implementation, therefore only the first five years are available. 96 City of Fort Bragg, California
Required Supplementary Information - Schedule of Contributions Safety Plan
Last 10 Fiscal Years*
2021 2020 2019 2018 2017
Contractually required contribution (actuarially
determined) $ 637,647 558,561 $ 471,193 $ 298,630 $ 387,206 $ Contributions in relation to the actuarially
determined contributions (637,647) (558,561) (471,193) (298,630) (387,206) Contribution deficiency (excess) - $ - $ - $ - $ - $
Covered payroll $ 1,145,799 1,071,290 $ 1,048,497 $ 1,268,709 $ 1,245,549 $ Contribution as a percentage of covered-employee
payroll 52.14% 55.65% 44.94% 23.54% 31.09%
Notes to Schedule
* At June 30, 2016 CalPERS combined the Miscellaneous Plan and PEPRA Miscellaneous Plan for purposes of calculating net pension liability. Due to the change in methodology, comparisons to prior years 2014 and 2015 have been removed.
1) Covered payroll represents compensation earnable and pensionable compensation. Only compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included. * Fiscal year 2014 was the first year of implementation, therefore only the first five years are available. 97 City of Fort Bragg, California
Required Supplementary Information - Schedule of the City's Proportionate Share of the Net Pension Liability
Miscellaneous Plan
Last 10 Fiscal Years*
2020 2019 2018 2017 2016
Plan's Proportion of the Net Pension Liability/(Asset) 0.13012% 0.12508% 0.12037% 0.11653% 0.11210% Plan's Proportionate Share of the Net Pension
Liability/(Asset) $ 5,008,648 5,488,390 $ 4,593,661 $ 4,593,661 $ 3,894,091 $ Plan's Covered Payroll $ 2,833,921 2,661,903 $ 2,788,318 $ 2,641,425 $ 2,551,931 $ Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of its Covered-Employee Payroll 206.18% 176.74% 164.75% 173.91% 152.59%
Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 74.96% 76.25% 76.38% 76.38% 82.66% Plan's Proportionate Share of Aggregate Employer
Contribution $ 455,093 734,213 $ 394,321 $ 430,051 $ 392,300 $ Notes to Schedule
1) Covered employee payroll represents compensation earnable and pensionable compensation. Only compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included. * Fiscal year 2014 was the first year of implementation, therefore only the first five years are available. * At June 30, 2016 CalPERS combined the Miscellaneous Plan and PEPRA Miscellaneous Plan for purposes of calculating net pension liability. Due to the change in methodology, comparisons to prior years 2014 and 2015 have been removed. 98 City of Fort Bragg, California
Required Supplementary Information - Schedule of the City's Proportionate Share of the Net Pension Liability
Safety Plan
Last 10 Fiscal Years*
2020 2019 2018 2017 2016
Plan's Proportion of the Net Pension Liability/(Asset) 0.07793% 0.07899% 0.07811% 0.08042% 0.08218% Plan's Proportionate Share of the Net Pension
Liability/(Asset) $ 4,931,069 5,192,221 $ 4,667,131 $ 4,165,367 $ 3,320,431 $ Plan's Covered Payroll 1,145,799 $ 1,048,497 $ 1,268,709 $ 1,245,549 $ 1,188,962 $ Plan's Proportionate Share of the Net Pension
Liability/(Asset) as a Percentage of its Covered-Employee Payroll 453.15% 470.30% 367.86% 334.42% 353.81%
Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Plan’s Total Pension Liability 69.95% 70.68% 69.76% 70.60% 75.04% Plan's Proportionate Share of Aggregate Employer
Contribution $ 637,647 625,589 $ 578,574 $ 387,206 $ 315,525 $ Notes to Schedule
* Fiscal year 2014 was the first year of implementation, therefore only the first five years are available. 1) Covered employee payroll represents compensation earnable and pensionable compensation. Only compensation earnable and pensionable compensation that would possibly go into the determination of retirement benefits are included. * At June 30, 2016 CalPERS combined the Miscellaneous Plan and PEPRA Miscellaneous Plan for purposes of calculating net pension liability. Due to the change in methodology, comparisons to prior years 2014 and 2015 have been removed. 99 This page intentionally left blank.
100

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
101
Fund Type
Special Revenue
Capital Projects Funds

NON-MAJOR GOVERNMENTAL FUNDS
Description
These funds account for restricted revenues (for specified purposes).

These funds account for construction or acquisition of
governmental capital assets (capital outlay).
102
City of Fort Bragg, California
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
Special Capital
Revenue Funds Projects Funds
ASSETS
Cash and investments $ 13,408 1,217,997 $ 1,231,405 $
Receivables:

Intergovernmental - 687,324 687,324
Loans/Notes receivable 201,407 - 201,407
Total assets $ 13,408 2,106,728 $ 2,120,136 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 162,564 $ 214,331 $ 376,895 $ Due to other funds 687,447 19,890 707,337
Total liabilities: 234,221 850,011 1,084,232
Deferred inflows of resources:

Unavailable revenue 201,407 - 201,407
Total deferred inflows of resources - 201,407 201,407
Total liabilities and deferred inflows 234,221 1,051,418 1,285,639 Fund Balances:

Restricted - 450,955 450,955
Assigned - 605,482 605,482
Unassigned (deficit) (1,127) (220,813) (221,940)
Total fund balances 1,055,310 834,497 (220,813)
Total liabilities, deferred inflows and fund balances $ 13,408 2,106,728 $ 2,120,136 $ Funds Totals
Non-Major
Governmental Funds
103
City of Fort Bragg, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2021
Special Capital
Revenue Funds Projects Funds
REVENUES:

Taxes and assessments $ - 66,414 $ 66,414 $
Fines and forfeitures 66,488 - 66,488
Intergovernmental - 5,713,791 5,713,791
Use of money and property - 9,967 9,967
Charges for services 110 - 110
Other revenues 16,127 - 16,127
Total revenues - 5,872,897 5,872,897
EXPENDITURES:

Current:

General government - 32,378 32,378
Public safety - 186,069 186,069
Public works 327,050 - 327,050
Community development - 3,816,253 3,816,253
Capital outlay 386,931 - 386,931
Total expenditures 386,931 4,361,750 4,748,681
REVENUES OVER (UNDER) EXPENDITURES (386,931) 1,511,147 1,124,216 OTHER FINANCING SOURCES (USES):

Transfers in 171,385 - 171,385
Transfers out - (1,798,443) (1,798,443)
Total other financing
sources (uses) 171,385 (1,798,443) (1,627,058)

REVENUES AND OTHER FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND OTHER
FINANCING (USES) (215,546) (287,296) (502,842)
FUND BALANCES:

Beginning of year (5,267) 1,342,606 1,337,339
End of year $ (220,813) 1,055,310 $ 834,497 $
Funds Totals
Non-Major
Governmental Funds
104
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105
Fund
General Plan Maintenance Fee
Housing Trust
Parking
Parking In-Lieu Fees
Parkland Monitoring and Reporting
State Tobacco License Fee
State Disability Access Fee
Asset Forfeiture
(continued)

NON-MAJOR SPECIAL REVENUE FUNDS
Description
Special Revenue Funds account for the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital project and exclusive of resources held in trust for individual, private orgaizations, or other governments. The City has a number of different special revenue funds which are part of the non-operating budget. The City's non-major special revenue funds includ the following:

To account for funds received for the annual Tobacco Retail License to cover costs associated with administration of the licensing program and compliance checks.

To account for General Plan Maintenance fee revenue which is required to be used for costs related to the update of the City’s General Plan and zoning code.

To account for Inclusionary Housing In-Lieu fee revenue which is required to be used for affordable housing activities.

To account for parking permit revenues and the cost of
maintaining City owned public parking lots.

To account for payments made by downtown property owners in lieu of providing on-site parking. Accumulated funds must be used for activities related to providing off-street parking facilities in the central business district.

To account for payments made by Georgia Pacific for monitoring and maintenance of the Coastal Trail remediation area.

To account for funds received under California SB-1186 which mandates a state fee of $4 on any applicant for or renewal of a local business license. The purpose is to increase disability access and compliance with construction-related accessibility
requirements and to develop educational resources for businesses in order to facilitate compliance with federal and state disability laws.

To account for monies obtained from seized assets of criminal activities. The funds are used solely to support law enforcement purposes.
106
Fund
Construction/Demolition Ordinance
Revenue
Waste Management Community Benefit
Payment
Gas Tax
RMRA
Traffic & Safety
Fire Equipment
Mendocino Council of Governments
(MCOG) Overall Work Program (OWP)
Grants
OJ Park Maintenance Fund
(continued)
To account for local transportation funds awarded for
transportation planning and technical assistance.

To account for the City’s share of State of California’s Highway User Tax collected by the State that are legally restricted to the maintenance and improvement of City roads and streets.

NON-MAJOR SPECIAL REVENUE FUNDS, Continued
Description
To account for the revenue received from traffic fines which is restricted to City street repairs and traffic safety.

To account for property tax revenues designated for the purchase of equipment for the Fort Bragg Fire Department.

To account for the City’s share of the State of California’s Road Maintenance and Rehabilitation Account which is legally restricted to the maintenance and improvement of City roads and streets.

To account for monies received from the Johnson Family Trust for the maintenance of OJ Park.

To account for deposits that are made in accordance with the City's Construction & Demolition Ordinance. Deposit are refunded if recycling goals are met. Otherwise, the deposits are forfeited and retained in the special revenue fund. The funds will be used to improve construction and demolition waste recycling facilities, education, and programs within the City.

To account for contract extension fee received from Waste Management. The City Council has designated these funds for the community benefit purposes.
107
Fund
Developer Deposits Accounts
Community Development Block Grant
Funds Unclassified Program Income
COPS AB1913
Bulletproof Vest Partnership Grant
CDBG Super NOFA
(continued)
The Community Development Block Grant program provides
competitive grants to enables local government to undertake a wide range of activities intended to create suitable living environments, provide decent affordable house, and create economic opportunities, primarily for persons of low and moderate income.

NON-MAJOR SPECIAL REVENUE FUNDS, Continued
Description
To account for CDBG grants awarded under the 2009 Recovery Act allocation for a housing project rehabilitation and under the 2010 General Allocation for two housing programs, public facility improvements, and a public service program.

Federal and State Grant Special Revenue Funds:

To account for monies received from the State or law enforcement services under the Citizens Option for Public Safety (COPS) Program. [the CSO funding was expended long ago; future funding may be acquired]
To account for monies received under the Bulletproof Vest Partnership Grant Act. This program is designed to pay up to 50% of the cost of National Institute of Justice (NIJ) compliant armored vests purchases for local law enforcement.

To account for monies received from developers to cover City costs associated with development projects.
108
Fund
STP D1 Streets & Highways Allocation
State Parks Prop 84 Grant
HCD HOME Grant
Other State Grants
(concluded)
NON-MAJOR SPECIAL REVENUE FUNDS, Continued
Description
To account for Federal Funding to be used to re-establish a Housing Rehabilitation Loan program for qualified low- and moderate-income homeowners.

To account for the City’s share of highways users’ tax revenues that are legally restricted to the planning, construction, improvement, maintenance and operation of City roads and streets.

To account for monies received from the State of California for construction of the Fort Bragg Coastal Restoration and Trail project.

To account for all other State Grants. Includes grant monies recevied from the State of California for purchase of off highway vehicles for use by the City Police Department.
109
City of Fort Bragg, California
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2021
General Plan
Maintenance Parking
Fee Housing Parking In-lieu Fees
ASSETS
Cash and investments $ 76,606 207,740 $ 34,541 $ - $
Receivables:

Intergovernmental - - - -
Loans/Notes receivable - 0 - -
Total assets $ 76,606 207,740 $ 34,541 $ - $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable - $ - $ - $ - $
Due to other funds - - - -
Total liabilities: - - - -
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources: - - - -
Total liabilities and deferred inflows - - - -
Fund Balances:

Nonspendable - - - -
Restricted - - - -
Assigned 76,606 34,541 - 207,740
Unassigned (deficit) - - - -
Total fund balances 76,606 207,740 34,541 -
Total liabilities deferred inflows and fund balances $ 76,606 207,740 $ 34,541 $ - $ 110
Waste
Parkland State State Construction/ Management
Monitoring/ Tobacco Disability Asset Demolition Community Reporting License Fee Access Fee Forfeiture Ordinance Benefit Pymt Gas Tax $ 16,849 127,579 $ 15,963 $ 394,953 $ 598 $ 269 $ 8,444 $ - - 19 - - - 46,224
- - - - - - -
$ 16,849 127,579 $ 15,982 $ 394,953 $ 598 $ 269 $ 54,668 $ $ - - $ 3,873 $ - $ - $ - $ - $
- - - - - - -
- - 3,873 - - - -
- - - - - - -
- - - - - - -
- - 3,873 - - - -
- - - - - - -
- - - 394,953 - - 54,668
127,579 16,849 12,109 - 598 269 -
- - - - - - -
16,849 127,579 12,109 394,953 598 269 54,668
$ 16,849 127,579 $ 15,982 $ 394,953 $ 598 $ 269 $ 54,668 $ (continued)
111
City of Fort Bragg, California
Combining Balance Sheet
Nonmajor Special Revenue Funds, continued
June 30, 2021
MCOG
Traffic & Fire Overal Work
RMRA Safety Equipment Plan
ASSETS
Cash and investments $ - - $ 158,173 $ - $
Receivables:

Intergovernmental 44,549 - - 48,285
Loans/Notes receivable - - - -
Total assets $ - 44,549 $ 158,173 $ 48,285 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable - $ - $ - $ - $
Due to other funds 44,549 - - 41,369
Total liabilities: - 44,549 - 41,369
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources: - - - -
Total liabilities and deferred inflows - 44,549 - 41,369 Fund Balances:

Nonspendable - - - -
Restricted - - - -
Assigned - - 158,173 6,916
Unassigned (deficit) - - - -
Total fund balances - - 158,173 6,916
Total liabilities deferred inflows and fund balances $ - 44,549 $ 158,173 $ 48,285 $ 112
OJ Park Developer Federal and
Maintenance Deposit State Grant
Fund Accounts Funds Total
$ 116,385 2,110 $ 57,787 $ 1,217,997 $
-
- - 548,247 687,324
- - 201,407 201,407
$ 116,385 2,110 $ 807,441 $ 2,106,728 $
$ 117,512 - $ 41,179 $ 162,564 $
- - 601,529 687,447
117,512 - 642,708 850,011
- - 201,407 201,407
- - 201,407 201,407
117,512 - 844,115 1,051,418
- - - -
- - 1,334 450,955
2,110 - (38,008) 605,482
(1,127) - - (1,127)
(1,127) 2,110 (36,674) 1,055,310
$ 116,385 2,110 $ 807,441 $ 2,106,728 $
113
City of Fort Bragg, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds
For the year ended June 30, 2021
General Plan
Maintenance Parking
Fee Housing Parking In-lieu Fees
REVENUES:

Taxes and assessments $ - - $ - $ - $
Fines and forfeitures - - - -
Intergovernmental - - - -
Use of money and property 2,159 758 339 -
Charges for services 110 - - -
Other revenues - - - -
Total revenues 758 2,269 339 -
EXPENDITURES:

Current:

General government 32,230 - - -
Public safety - - - -
Public works - - - -
Community development 3,000 - - -
Total expenditures 3,000 32,230 - -

REVENUES OVER (UNDER)
EXPENDITURES (2,242) (29,961) 339 -
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out - - - -
Total other financing
sources and uses - - - -

REVENUES AND OTHER FINANCING

SOURCES OVER (UNDER)

EXPENDITURES AND OTHER
FINANCING (USES) (2,242) (29,961) 339 -
FUND BALANCES (DEFICITS):

Beginning of year 237,701 78,848 34,202 -
End of year $ 76,606 207,740 $ 34,541 $ - $
114
Waste
Parkland State State Construction/ Management
Monitoring/ Tobacco Disability Asset Demolition Community Reporting License Fee Access Fee Forfeiture Ordinance Benefit Pymt Gas Tax $ - - $ - $ - $ - $ - $ 12,907 $
- - - 62,657 - - -
2,632 2,811 - - - - 167,188
1,250 151 138 3,469 - - 466
- - - - - - -
- - - 16,127 - - -
2,783 1,250 2,949 82,253 - - 180,561
- - 148 - - - -
- - - 25,496 - - -
- - - - - - 128,744
- - - - - - -
- - 148 25,496 - - 128,744
2,783 1,250 2,801 56,757 - - 51,817
- - - - - - -
- - - - - - -
- - - - - - -
2,783 1,250 2,801 56,757 - - 51,817
126,329 14,066 9,308 338,196 598 269 2,851
$ 16,849 127,579 $ 12,109 $ 394,953 $ 598 $ 269 $ 54,668 $ 115
City of Fort Bragg, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds, continued
For the year ended June 30, 2021
MCOG
Traffic & Fire Overall Work
RMRA Safety Equipment Plan
REVENUES:

Taxes and assessments $ - - $ 53,507 $ - $
Fines and forfeitures - 3,831 - -
Intergovernmental 157,145 - - 41,362
Use of money and property - - 1,237 -
Charges for services - - - -
Other revenues - - - -
Total revenues 3,831 157,145 54,744 41,362
EXPENDITURES:

Current:

General government - - - -
Public safety 3,831 - - -
Public works 162,247 - - 36,059
Community development - - - -
Total expenditures 3,831 162,247 - 36,059

REVENUES OVER (UNDER)
EXPENDITURES - (5,102) 54,744 5,303
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out (200,000) - - -
Total other financing
sources and uses - (200,000) - -

REVENUES AND OTHER FINANCING

SOURCES OVER (UNDER)

EXPENDITURES AND OTHER
FINANCING (USES) - (205,102) 54,744 5,303
FUND BALANCES (DEFICITS):

Beginning of year 205,102 - 103,429 1,613
End of year $ - - $ 158,173 $ 6,916 $
116
OJ Park Developer Federal and
Maintenance Deposit State Grant
Fund Account Funds Totals
$ - - $ - $ 66,414 $
- - - 66,488
- - 5,342,653 5,713,791
- - - 9,967
- - - 110
- - - 16,127
- - 5,342,653 5,872,897
- - - 32,378
- 156,742 - 186,069
- - - 327,050
- - 3,813,253 3,816,253
- - 3,969,995 4,361,750
- - 1,372,658 1,511,147
- - - -
- (1,581,141) (17,302) (1,798,443)
(17,302) - (1,581,141) (1,798,443)
(17,302) - (208,483) (287,296)
2,110 16,175 1,342,606 171,809
$ (1,127) 2,110 $ (36,674) $ 1,055,310 $
117
City of Fort Bragg, California
Combining Balance Sheet
Federal and State Grant Special Revenue Funds
June 30, 2021
CDBG
Unclassified CDBG
Program Income COPS Super NOFA
ASSETS
Cash and investments $ - 7,025 $ 34,496 $
Restricted cash and investments - -
Receivables:

Intergovernmental - - 31,385
Loans/Notes receivable - - -
Total assets $ - 7,025 $ 65,881 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable - $ - $ 360 $
Due to other funds - - 94,679
Total liabilities - - 95,039
Deferred inflows of resources:

Unavailable revenue
Total deferred inflows of resources: - - -
Total liabilities and deferred inflows - - 95,039
Fund Balances:

Restricted 7,025 - -
Unassigned (deficit) - - (29,158)
Total fund balances - 7,025 (29,158)
Total liabilities deferred inflows and fund balances $ - 7,025 $ 65,881 $ 118
STP D1
Streets and State Parks HCD
Highway Prop 84 HOME Other State CDBG Grant
Allocation Grant Grant Grants CDBG Grant Covid Totals
$ - 1,266 $ 15,000 $ - $ - $ - $ 57,787 $
-
591 453,901 47,211 15,159 - - 548,247
- - 201,407 - - 201,407
$ 591 1,266 $ 670,308 $ 47,211 $ 15,159 $ - $ 807,441 $ $ - - $ - $ 39,819 $ - $ 1,000 41,179 $
- - 464,980 18,861 17,093 5,916 601,529
- - 464,980 58,680 17,093 6,916 642,708
- - 201,407 - - - 201,407
- - 201,407 - - - 201,407
- - 666,387 58,680 17,093 6,916 844,115
591 1,266 3,921 (11,469) - - 1,334
- - - - (1,934) (6,916) (38,008)
591 1,266 3,921 (11,469) (1,934) (6,916) (36,674)
$ 591 1,266 $ 670,308 $ 47,211 $ 15,159 $ - $ 807,441 $ (concluded)
119
City of Fort Bragg, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Federal and State Grant Special Revenue Funds
For the year ended June 30, 2021
CDBG
Unclassified CDBG
Program Income COPS Super NOFA
REVENUES:

Intergovernmental $ 156,742 - $ 134,852
Total revenues 156,742 - 134,852
EXPENDITURES:

Current:

Public safety 156,742 - -
Community development - - 146,655
Total expenditures 156,742 - 146,655

REVENUES OVER (UNDER)
EXPENDITURES - - (11,803)
OTHER FINANCING SOURCES (USES):

Transfers in - - -
Transfers out - - -
Total other financing sources and uses - - -

REVENUES AND OTHER FINANCING SOURCES

OVER (UNDER) EXPENDITURES AND OTHER
FINANCING (USES) - - (11,803)
FUND BALANCES (DEFICIT):

Beginning of year 7,025 - (17,355)
End of year $ - 7,025 $ (29,158) $
120
STP D1
Streets and State Parks HCD Other
Highway Prop 84 HOME State CDBG Grant
Allocation Grant Grant Grants CDBG Grant COVID Totals
$ - 81,259 $ 453,901 $ 4,500,740 $ 15,159 $ - $ 5,342,653 $ - 81,259 453,901 4,500,740 15,159 - 5,342,653
- - - - - - 156,742
- - 473,267 3,169,322 17,093 6,916 3,813,253
- - 473,267 3,169,322 17,093 6,916 3,969,995
- 81,259 (19,366) 1,331,418 (1,934) (6,916) 1,372,658
- - - - - - -
- (81,259) - (1,499,882) - - (1,581,141)
- (81,259) - (1,499,882) - - (1,581,141)
- - (19,366) (168,464) (1,934) (6,916) (208,483)
1,266 591 23,287 156,995 - - 171,809
$ 591 1,266 $ 3,921 $ (11,469) $ (1,934) $ (6,916) $ (36,674) $ (concluded)
121
City of Fort Bragg, California
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2021
Coastal
Trail
ASSETS
Cash and investments $ 13,408
Total assets $ 13,408

LIABILITIES

AND FUND BALANCES
Liabilities:

Accounts payable 214,331 $
Due to other funds 19,890
Total liabilities: 234,221
Fund Balances:

Unassigned (deficit) (220,813)
Total fund balances (220,813)
Total liabilities and fund balances $ 13,408
122
City of Fort Bragg, California
Nonmajor Capital Projects Fund
For the year ended June 30, 2021
Coastal
Trail
REVENUES:

Intergovernmental $ -
Other revenues -
Total revenues -
EXPENDITURES:

Current:

Community development -
Capital outlay 386,931
Total expenditures 386,931

REVENUES OVER (UNDER)
EXPENDITURES (386,931)
OTHER FINANCING SOURCES (USES):

Transfers in 171,385
Transfers out -
Total other financing
sources and uses 171,385

REVENUES AND OTHER FINANCING

SOURCES OVER (UNDER)

EXPENDITURES AND OTHER
FINANCING (USES) (215,546)
FUND BALANCES (DEFICITS):

Beginning of year (5,267)
End of year $ (220,813)
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
123
Fund Type
Building Maintenance
Information Technology Fund
Fleet Services

INTERNAL SERVICE FUNDS
Description
Accounts for all activities of the City's central garage operations, the costs of which are distributed among designated user departments.

Accounts for all activities of the City's computer networks, the costs of which are distributed among user departments using equitable formulas.

Accounts for the maintenance of all City owned buildings 124
City of Fort Bragg, California
Combining Statement of Net Position
Internal Service Funds
For the year ended June 30, 2021
Information
Building Technology Fleet
Maintenance Fund Services Totals
ASSETS
Current assets:

Cash and investments 600,667 $ 135,840 $ 184,032 $ 920,539 $ Total current assets 135,840 600,667 184,032 920,539
Noncurrent assets:

Capital assets, net 47,400 30,822 1,180,548 1,258,770
Total noncurrent assets 30,822 47,400 1,180,548 1,258,770 Total assets $ 166,662 648,067 $ 1,364,580 $ 2,179,309 $

LIABILITIES AND NET POSITION
Current liabilities:

Accounts payable 47 $ 31,921 $ 19,236 51,204 $
Accrued liabilities - 3,038 - 3,038
Total current liabilities 34,959 47 19,236 54,242
Noncurrent liabilities:

Compensated absences - - - -
Total liabilities 34,959 47 19,236 54,242
Net Position:

Net investment in capital assets 47,400 30,822 1,180,548 1,258,770 Unrestricted 600,620 100,881 164,796 866,297
Total net position 131,703 648,020 1,345,344 2,125,067
Total liabilities and net position $ 166,662 648,067 $ 1,364,580 $ 2,179,309 $ 125
City of Fort Bragg, California
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the year ended June 30, 2021
Information
Building Technology Fleet
Maintenance Fund Services Totals
OPERATING REVENUES:

Interdepartmental charges 97,147 $ 272,450 $ 255,422 $ 625,019 $ Other 5,826 - - 5,826
Total operating revenues 272,450 102,973 255,422 630,845 OPERATING EXPENSES:

Personnel services 78,810 91,506 144,544 314,860
Repairs and maintenance 19,738 - 43,647 63,385
Materials and supplies - 194,562 96,890 291,452
Contractual services - 24 2,619 2,643
Depreciation - (11,734) 94,221 82,487
Total operating expenses 274,358 98,548 381,921 754,827 OPERATING INCOME (LOSS) (1,908) 4,425 (126,499) (123,982) NET INCOME (LOSS) BEFORE TRANSFERS (1,908) 4,425 (126,499) (123,982) Transfers in - - 636,938 636,938
Transfers out - - - -
Total transfers - - 636,938 636,938
Change in net position (1,908) 4,425 510,439 512,956
NET POSITION (DEFICIT):

Beginning of year 643,595 133,611 834,905 1,612,111
End of year 648,020 $ 131,703 $ 1,345,344 $ 2,125,067 $ 126
City of Fort Bragg, California
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2021
Information
Building Technology Fleet
Maintenance Fund Services Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from interfund services provided 102,973 $ 272,450 $ 255,422 $ 630,845 $ Cash paid to suppliers for goods and services (21,872) (193,721) (132,370) (347,963) Cash paid to employees for services (78,810) (90,123) (144,544) (313,477) Net cash provided (used) by operating activities (11,394) 2,291 (21,492) (30,595)

CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:

Transfers received - - 636,938 636,938
Transfers paid - - - -
Net cash provided (used) by noncapital financing activities - - 636,938 636,938

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Acquisition and construction of capital assets 1,402 1 (644,998) (643,595) Net cash (used) by capital and related financing activities 1 1,402 (644,998) (643,595) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest on investments - - - -
Net cash provided by investing activities - - - -
Net increase (decrease) in cash and cash equivalents (11,393) 3,693 (29,552) (37,252) CASH AND CASH EQUIVALENTS:

Beginning of year 596,974 147,233 213,584 957,791
End of year 600,667 $ 135,840 $ 184,032 $ 920,539 $
Reconciliation of income from operations to net
cash provided (used) by operating activities:

Operating income (loss) 4,425 $ (1,908) $ (126,499) $ (123,982) $ Adjustments to reconcile operating income
to net cash provided by operating activities:

Depreciation - (11,734) 94,221 82,487
(Increase) decrease in current assets:

Accounts receivable - - - -
Increase (decrease) in liabilities:

Accounts payable (2,134) 865 10,786 9,517
Accrued liabilities - 1,383 - 1,383
Net cash provided by operating activities $ (11,394) 2,291 $ (21,492) $ (30,595) $ 127
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128
Page(s)
Financial Trends
130-140
Revenue Capacity
141-149
Debt Capacity
150-156
Demographic and Economic Information
158-159
Operating Information
160-162
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place.

These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs.

STATISTICAL SECTION
This part of the City of Fort Bragg's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, footnotes, and required supplementary information says about the City's overall financial health.

Contents
These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. generate revenues. Property taxes, sales and use taxes, charges for services, licenses, permits and fees and intergovernmental revenue are the City's most significant revenue sources.

These schedules contain information to help the reader assess the affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt 129
City of Fort Bragg, California
Net Position by Component
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Accrual basis of accounting)
(In Thousands)
2012 2013 2014
Governmental activities
Net investment in capital assets 30,664 $       30,444 $       31,944 $ Restricted 4,776            5,671            5,987
Unrestricted (deficit) 1,356            428               232 Total governmental activities net position $       36,543 36,796 $       38,163 $ Business‐type activities
Net investment in capital assets 31,319 $       30,764 $       30,531 $ Restricted 108               72                  101
Unrestricted  (deficit) 3,709            4,294            3,603 Total business‐type activities net position $       35,130 35,136 $       34,235 $ Primary government
Net investment in capital assets 61,983 $       61,208 $       62,475 $ Restricted 4,884            5,743            6,088
Unrestricted (deficit) 5,065            4,722            3,835 Total primary government net position $       71,673 71,932 $       72,398 $ Source: City Finance Department
0 0.2

0.4 0.6

0.8 1
Governmental activities
$‐
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
2012 2013 2014 2015 2016
Governmental activities Business‐type activities
130
2015 2016 2017 2018 2019 2020 2021
$       38,647 35,914 $       39,523 $       42,293 $       41,400 $       42,102 $       41,686 $ 3,536 2,289            2,513            3,758            1,279            1,922            2,947 (399) (203)              (1,518)           (5,115)           (2,456)           (5,026)           (4,140) $       41,784 38,625 $       40,518 $       40,935 $       40,223 $       38,998 $       40,493 $ $       30,503 30,047 $       31,597 $       33,572 $       37,806 $       45,807 $       46,331 $ 108 108               108               108               108               108               108 4,232 3,649            6,912            7,515            8,094            8,704            12,277 $       34,843 33,804 $       38,617 $       41,195 $       46,008 $       54,619 $       58,716 $ $       69,150 65,961 $       71,119 $       75,865 $       79,206 $       87,909 $       88,017 $ 3,644 3,022            2,621            3,866            1,387            2,030            3,055 3,833 3,466            5,395            2,400            5,638            3,678            8,137 $       76,627 72,429 $       79,135 $       82,131 $       86,231 $       93,617 $       99,209 $ 2017 2018 2019 2020 2021
131
City of Fort Bragg, California
Changes in Net Position
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Accrual basis of accounting)
(In Thousands)
2012 2013 2014
Expenses
Governmental activities:

General government 2,540 $       2,708 $       1,500 $
Public safety 3,493           3,399          3,851
Public works 1,532           1,874          2,176
Community development 1,877           1,529          3,485 Parks and recreation ‐                    ‐                   ‐ Marketing and promotions                    ‐ ‐                   ‐ Interest and fiscal charges              49 177                42 Total governmental activities expenses 9,619           9,559          11,054 Business‐type activities:

Water  2,107           2,138          2,539
Sewer 2,983           3,063          3,095
C.V. Starr Center              2,236 183          2,262 Total business‐type activities expenses 5,273           7,437          7,896 Total primary government expenses 14,892        16,996        18,950 Program revenues
Governmental activities:

Charges for services:

General government 2,718          2,851 2,701
Public safety 29                72 40
Public works 4                  34 5
Community development 349              100             58 Operating grants and contributions              1,572 684          1,567 Capital grants and contributions           303 1,096             1,818 Total governmental activities program revenues 4,880           4,721          6,400 Business‐type activities:

Charges for services:

Water  2,194           2,404          2,229
Wastewater 2,945           3,197          3,004
C.V. Starr Center                    591 ‐             635 Operating grants and contributions                    ‐ ‐                   ‐ Capital grants and contributions        ‐ 25,132                   ‐ Total business‐type activities program revenues 30,271        6,192          5,868 Total primary government program revenues        10,913 35,151        12,268 Net (Expense)/Revenue
Governmental activities (4,739) (4,838) (4,654)
Business‐type activities 24,998        (1,245)         (2,028) Total primary government net expense 20,259        (6,083)         (6,682) 132
2015 2016 2017 2018 2019 2020 2021
$         2,877 2,593 $        2,221 $        2,804 $        2,384 $        2,623 $        3,581 $ 4,187 3,663            4,388            4,461            4,338            5,374            4,386 2,108 2,435            2,750            2,873            2,979            3,122            2,438 1,700 840            1,018            1,208            1,056            876               4,105 ‐ ‐                    38                 ‐                    ‐                    ‐                    ‐ ‐ ‐                    ‐                    ‐                    ‐                    186               93 26 30                 21                 53                 47                 5                    38 10,898 9,561         10,434         11,399         10,804         12,186         14,641 2,264 2,286            2,158            2,034            1,920            1,676            1,688 2,897 2,801            2,847            2,569            2,674            2,302            3,043 2,292 2,382            2,320            2,386            2,722            2,081            1,229 7,453 7,469            7,325            6,989            7,316            6,059            5,960 18,351 17,030         17,760         18,388         18,120         18,245         20,601 2,818 2,809            1,967            1,324            1,108            880               978 289 50               299               365               371               290               252 344 102               558               1,049            1,155            1,980            1,583 30 ‐                 232               520               293               ‐                    0 725 4,702               1,251            2,259            765               800               3,974 3,762 2,383            922               3,324            3,296            1,345            1,584 7,968 10,046            5,227            8,840            6,988            5,295            8,371 2,624 2,496            2,683            2,909            3,077            3,181            3,660 3,332 3,194            3,305            3,495            3,599            3,484            4,017 722 706               696               743               711               466               ‐ ‐ ‐                    ‐                    ‐                    ‐                    ‐                    ‐ ‐ ‐                    ‐                    ‐                    ‐                    4,512            ‐ 6,678 6,396            6,683            7,147            7,387            11,643         7,678 14,646 16,442         11,911         15,987         14,375         16,938         16,049 485          (5,207) (2,930)          (2,558)          (3,817)          (6,891)          (6,270) (775) (1,073)              (642)              158               70                 5,584            1,718 (3,705) (588)          (5,849)          (2,400)          (3,747)          (1,307)          (4,552) (continued)
133
City of Fort Bragg, California
Changes in Net Position
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Accrual basis of accounting)
(In Thousands)
2012 2013 2014
Governmental activities:

Taxes:

Property taxes 1,413           924             943
Sales and use tax           2,390 2,271          2,490
Transient lodging tax           1,536 1,411          1,667 Franchise taxes 470              482             496
Other taxes 225              203             411
Use of money and property                103 91             45 Unrealized gains and losses ‐                    ‐                   ‐ Other general revenues 399              81               222 Special Items
Transfer in (out) (2)                 (17)              (1) Extraordinary item: Redevelopment dissolution 3,070           ‐                   ‐ Total governmental activities 9,348           5,702          6,273 Business‐type activities:

Property taxes 19                231             216
Sales and use tax             811 772
Use of money and property                8 16                  33 Other revenues 97                98                72
Transfer in (out) 2                   17                1 Total business‐type activities 134              1,126          1,133 Total primary government 9,482           6,828          7,406 Changes in Net Position
Governmental activities 4,609 864 1,619
Business‐type activities        (119) 25,132            (895) Total primary government 29,741 $     745 $          724 $ Source: City Finance Department
134
2015 2016 2017 2018 2019 2020 2021
1,007 909            1,084            1,035            1,075            1,157            1,152 2,458 2,523            2,414            1,785            1,728            2,743            3,127 1,948 1,858            2,149            2,619            2,640            2,204            3,322 491 493               ‐                    ‐                    ‐                    590               626 403 435               674               719               762               185               185 113 87               (23)                (110)              66                 107               112 ‐ ‐                    ‐                    ‐                    195               228               (124) 120 67               151               61                 8                    24                 266 ‐ (507)                    ‐                    ‐                    ‐ (451) (89)              (2,003)          (898)              (1,029)          (1,573)          (901) ‐ ‐                    ‐                    ‐                    ‐                    ‐                    ‐ 6,089 6,283            3,940            5,210            5,445            5,665            7,765 220 234               234               236               249               236               263 846 807               881               915               879               945               1,100 27 42                 56                 98                 168               178               115 271 161               1,242            272               77                 95                 ‐ 451 89               2,003            898               1,029            1,573            901 1,815 1,333            4,416            2,420            2,402            3,027            2,379 7,904 7,616            8,356            7,630            7,847            8,692            10,144 6,768 3,159 (1,267) 2,652 1,628 (1,226) 1,495
1,040 260            3,774            2,578            2,472            8,611            4,096 $         4,199 7,028 $        2,507 $        5,230 $        4,100 $        7,385 $        5,591 $ (concluded)
135
2012 2013 2014 2015 2016
General Fund:

Nonspendable 211 $ 248 $ 185 $ 205 $ $             66
Committed                    ‐
Unassigned 3,775 4,007 4,434 4,553              790
Total general fund 4,255 3,986 4,619 4,758              856 All Other Governmental Funds:

Restricted 4,530 4,598 4,590 2,914           3,536
Assigned - - - 1,322           1,116
Unassigned (deficit) (187) (299) (1,441) (1,157)             (331) Total all other governmental funds 4,291 4,343 3,157 3,079           4,321 Total all governmental funds $ 8,546 8,329 $ 7,776 $ 7,837 $ $        5,177 Source: City Finance Department
(In Thousands)
City of Fort Bragg, California
Fund Balances of Governmental
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Modified accrual basis of accounting)
‐
2,000
4,000
6,000
8,000
10,000
2012 2013 2014 2015 2016 2017
General Fund All Other Governmental Funds:
136
2017 2018 2019 2020 2021
$                 94 4 $              9 $                 3 $                 7 $ 1,694 2,135            1,682            2,160            2,679 1,172 968            1,451            529               1,498 2,959 3,107            3,142            2,692            4,184 3,758 2,530            1,267            1,922            2,947 1,292 1,472            3,005            1,426            814 (470) 731              (16)                (284)              (248) 4,580 4,733            4,256            3,064            3,513 $         7,539 7,839 $         7,398 $         5,756 $         7,697 $ 2018 2019 2020 2021
137
City of Fort Bragg, California
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Modified accrual basis of accounting)
(In Thousands)
Revenues: 2012 2013 2014 2015 2016
Taxes and assessments $              5,579 5,790 $              5,810 $              4,949 $              5,067 $ Intergovernmental                 1,897 1,773                 2,946                 7,463                 5,219 Charges for services                 2,564 2,854                 2,907                 457                    242 Fines, forfeitures and penalties                      23 13                      28                      178                    162 Licenses and permits                    260 241                    234                    254                    273 Use of money and property                      103 84                    84                      120                    174 Unrealized gains and losses                         ‐ ‐                         ‐                         ‐                         ‐ Reimbursements                         ‐ ‐                         ‐                         2,930                 3,413 Other                    80 410                      240                    59                      127 Total revenues               10,506 11,165               12,249               16,410               14,677 Expenditures:

Current:

General government                 2,179 1,252                 1,549                 2,875                 2,685 Public safety                 3,410 3,351                 3,829                 3,581                 4,100 Public works                 1,472 1,386                 1,594                 3,469                 1,874 Community development                 2,191 1,975                 3,460                 834                    1,693 Marketing and promotions                         ‐ ‐                         ‐                         ‐                         ‐ Cost allocations                         ‐ ‐                         ‐                         ‐                         ‐ Capital outlay 1,983 874                    2,431                 5,058                 1,725 Debt Service:

Principal Retirement 113 107                    112                    116                    120 Interest and fiscal charges 161                    40                      36                      31                      26 Total expenditures               10,273 10,221               13,011               15,964               12,223 Reconciliation of Governmental Revenues
Less Expenditures to Fund Equity:

Revenues over (under) expenditures 944 $                 233 $                 (762) $                446 $                 2,454 $ Other financing sources (uses):

Proceeds from sales of assets ‐                         ‐                         ‐                         ‐                         ‐ Extraordinary loss on dissolution of redevelopment (1,039)                ‐                         ‐                         ‐                         ‐ Transfers in 1,910                 1,950                 1,091                 5,683                 2,714 Transfers out (1,912)                (1                (1,099) ,966)                (6                (3,292) ,069) Total other financing sources (uses) (1,041)                (16)                     (8)                       (                   (578) 386) Net change in fund balances (97) $                  217 $                 (770) $                60 $                   1,876 $ Debt service as a percentage of noncapital expenditures 3.33% 1.56% 1.40% 1.35% 1.39% Source: City Finance Department
$(2,000)
$(1,500)
$(1,000)
$(500)
$‐
$500
$1,000
$1,500
$2,000
2012 2013 2014 2015 2016 2017
Net change in fund balances $(97) $217 $(770) $60 $1,876 $(1,871) CHANGE IN FUND BALANCE ‐ GOVERNMENTAL FUNDS
138
2017 2018 2019 2020 2021
$              7,131 6,486 $              7,138 $              6,878 $              8,412 $ 4,592 1,847                 772                    2,702                 5,883 139 203                    128                    61                      47 84 211                      118                    112                    103 132 97                    128                    97                      92 126 55                    213                    409                    13 ‐ ‐                         195                    ‐                         ‐ 2,691 2,345                 2,453                 2,335                 2,247 82 210                      37                      22                      264 14,976 11,454               11,182               12,616               17,061 2,881 2,548                 2,522                 2,094 $              2,256 4,383 4,233                 4,189                 5,029                 4,094 1,947 1,902                 1,968                 1,901                 1,847 1,201 1,011                 1,050                 846                    4,368 ‐ ‐                         ‐                         186                    93 ‐ ‐                         ‐                         475                    478 3,780 1,992                 282                    1,975                 415 169 127                    169                    180                    38 17 21                      17                      5                         0 14,378 11,834               10,197               12,691               13,589 $                598 (380) $                 985 $                 (75) $                  3,472 $ ‐ ‐                         ‐                         6                         9 ‐ ‐                         ‐                         ‐                         ‐ 2,944 3,775                 2,830                 616                    866 (3,843) (5,266)                (3,957)                (2,190)                (2,403) (898) (1,491)                   (1,127)                (1,568)                (1,529) $            (300) (1,871) $                (142) $                (1,643) $            1,943 $

1.50% 1.75% 1.88% 1.73% 0.29%
2018 2019 2020 2021
$(300) $(142) $(1,643) $1,943
139
(In Thousands)
Fiscal
Year
Ended Sales & Transient Other
June 30, Property (1) Use Tax Occupancy Tax Taxes Total 2012 1,413 2,271 1,411 859 5,954
2013 924 2,409 1,561 685 5,579
2014 943 2,445 1,668 754 5,810
2015 909 2,523 1,858 928 6,218
2016 1,007 2,458 1,948 894 6,307
2017 1,084 2,414 2,149 674 6,321
2018 1,035 2,705 2,619 719 7,078
2019 1,075 2,607 2,640 762 7,085
2020 1,157 2,743 2,204 775 6,879
2021 1,152 3,127 3,322 811 8,412
Source: City Finance Department
City of Fort Bragg, California
Governmental Fund Tax Revenue By Source
Last Ten Fiscal Years
(Modified accrual basis of accounting)
(1) Decrease in property taxes beginning in fiscal year 2012 relates to the dissolution of the Redevelopment Agency. Upon the dissolution of the Redevelopment Agency on February 1, 2012, property taxes received by the Redevelopment Successor Agency are reported in a private-purpose trust fund and therefore are excluded from the activities of the primary government. ‐
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
TAX REVENUES BY SOURCE ‐
GOVERNMENTAL FUNDS
Property (1)  Sales &   Use Tax  Transient   Occupancy Tax  Other   Taxes 140
Taxpayer Business Type Taxpayer Business Type
Arco Am/Pm Mini Marts Service Stations Amerigas Propane Energy Sales Canclini TV & Appliance Furniture/Appliance Canclini TV & Appliance Furniture/Appliance Chevron Service Stations Service Stations Chevron Service Stations Service Stations CVS Pharmacy Drug Stores Coast To Coast Hardware Bldg.Matls‐Retail Dollar Tree Stores Department Stores CVS Pharmacy Drug Stores Geo Aggregates Bldg.Matls‐Whsle Denny's Restaurant Restaurants Harvest Market Food Markets Fort Bragg Feed & Pet Miscellaneous Retail Kemppe Liquid Gas Energy Sales Harvest Market Food Markets Mcdonald's Restaurants Restaurants Kemppe Liquid Gas Energy Sales Mendo Mill & Lumber Company Bldg.Matls‐Retail Mcdonald's Restaurants Restaurants Mendocino County Horticulture Supply Florist/Nursery Mendo Mill & Lumber Company Bldg.Matls‐Retail O'Reilly Auto Parts Auto Parts/Repair Mendocino Coast Petroleum Energy Sales Purity Supermarket Food Markets Mendocino County Hydrogarden Florist/Nursery Redwood Coast Fuels Energy Sales O'Reilly Auto Parts Auto Parts/Repair Rino Service Stations Service Stations Rhoads Auto Parts Auto Parts/Repair Rite Aid Drug Stores Drug Stores Rite Aid Drug Stores Drug Stores Rossi Building Materials Bldg.Matls‐Retail Rossi Building Materials Bldg.Matls‐Retail Safeway Stores Food Markets Safeway Stores Food Markets Sinclair Service Stations Service Stations Sears Hometown Stores Furniture/Appliance Sport Chrysler‐Jeep‐Dodge Auto Sales ‐ New Speedex Service Station Service Stations Taco Bell Restaurants Sport Chrysler Jeep Dodge Auto Sales ‐ New The Brewery Shop Restaurants The Brewery Shop Restaurants True Value Hardware Bldg.Matls‐Retail Two Short Sales Bldg.Matls‐Whsle Two Short Sales Bldg.Matls‐Whsle Union 76 Service Stations Service Stations US Cellular Miscellaneous Retail Walsh Oil Company Energy Sales Source:  MuniServices, LLC / Avenu Insights & Analytics City of Fort Bragg, California
Last Fiscal Year and Nine Years Ago
Principal Sales Tax Producers
2020‐21 2011‐12
141
CDTFA NAICS SECTOR 2021Q1 2020Q1 2019Q1 2018Q1
Accommodation and Food Services 218,812 260,642 268,897 282,205 Agriculture, Forestry, Fishing and Hunting 5,009 10,830 9,978 3,608 Arts, Entertainment, and Recreation 189 5,903 5,394 3,516 Construction 39,062 47,775 51,700 35,262
Educational Services 866 1,310 2,082 7,876
Information 7,167 7,601 9,327 5,569
Manufacturing 7,990 8,735 8,236 7,647
Mining, Quarrying, and Oil and Gas Extraction 63,955 82,665 86,275 73,796 Other Services (except Public Administration) 27,701 31,619 31,125 30,343 Professional, Scientific, and Technical Services 4,443 5,929 5,880 7,944 Real Estate and Rental and Leasing 4,056 2,239 2,712 2,455 Retail Trade 1,031,320 1,049,729 1,041,404 1,054,885
Utilities 3,129 5,050 5,121 4,702
All Other NAICS Sectors 23,238 21,472 21,428 21,025
TOTAL 1,436,936 1,541,499 1,549,559 1,540,834
Source:  MuniServices, LLC / Avenu Insights & Analytics Historical Sales Tax Amounts by Benchmark Year
Last Ten Fiscal Years
City of Fort Bragg, California
142
2017Q1 2016Q1 2015Q1 2014Q1 2013Q1 2012Q1
261,139 233,034 218,376 201,158 199,988 188,756
7,451 11,516 6,866 2,625 2,972 1,293
3,469 3,454 4,002 4,407 3,829 3,702
34,305 36,459 34,464 30,004 26,029 21,042
7,499 8,318 6,932 7,927 3,006 844
4,825 4,031 6,163 7,182 7,828 8,571
6,312 4,704 4,951 4,444 6,102 11,320
56,363 62,526 80,000 113,954 112,609 122,744
31,197 31,897 31,049 27,496 27,573 26,934
7,989 8,627 8,693 7,599 7,836 9,433
2,525 2,525 2,944 2,893 3,394 2,795
987,126 989,036 982,987 979,802 989,267 991,459
5,430 4,696 3,743 3,570 4,800 5,370
18,791 18,414 8,834 5,016 4,953 1,184
1,434,421 1,419,237 1,400,004 1,398,075 1,400,186 1,395,447 143
(In Thousands)
Fiscal Year
End Secured Property* Unsecured Property
Taxable
Assessed Value % Change
Total
Direct Tax
Rate (1)
Estimated Actual
Taxable Value (2)
Factor of Taxable
Assessed Value
(2)
2011‐12 603,272 $                 29,066 $                       632,338 $             ‐8.5% 1.123000 710,404 1.123456 2012‐13 579,450 $                 31,513 $                       610,963 $             ‐3.4% 1.113100 611,333 1.000606 2013‐14 585,992 $                 29,641 $                       615,633 $             0.8% 1.125000 624,469 1.014352 2014‐15 590,079 $                 31,347 $                       621,426 $             0.9% 1.127000 689,061 1.108838 2015‐16 607,137 $                 31,275 $                       638,412 $             2.7% 1.132000 702,975 1.101131 2016‐17 626,121 $                 32,889 $                       659,009 $             3.2% 1.133000 852,603 1.293765 2017‐18 646,586 $                 32,288 $                       678,874 $             6.3% 1.133000 902,380 1.329231 2018‐19 671,692 $                 31,556 $                       703,249 $             6.7% 1.138000 918,610 1.306238 2019‐20 695,389 $                 33,240 $                       728,629 $             7.3% 1.131000 1,021,566 1.402039 2020‐21 715,581 $                 33,149 $                       748,730 $             6.5% 1.124000 805,819 1.076248 (1.) Total tax rate is represented by TRA 001‐001.
*Secured Property is net of all exemptions and includes Unitary value. (2.) Estimated Actual Value is derived from a series of calculations comparing median assessed values from 1940 to current median sale prices.  Based on these calculations a multiplier value was extrapolated and applied to current assessed values.

City of Fort Bragg, California
Assessed Value and Estimated Actual Value of Taxable Property, City Wide Last Ten Fiscal Years
Source:  Mendocino County Assessor data, MuniServices, LLC / Avenu Insights & Analytics 0 100000
200000
300000
400000
500000
600000
700000
800000
Assessed Value Of Taxable Property
144
Assessed Value of Property by Use Code, City Wide
(In Thousands)
Category 2012‐13 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 Residential 347,694 351,259 357,224 369,852 393,470 375,474 395,888 410,229 Commercial 164,165 165,103 163,032 167,141 150,666 153,767 156,832 160,042 Industrial 30,593 36,342 36,807 37,595 37,908 38,037 39,021 40,900 Miscellaneous 689 698 701 735 1,120 31,285 31,187 33,043 Vacant 21,552 18,931 18,682 18,963 21,162 21,817 23,423 24,116 Professional 0 0 0 179 9,804 19,769 20,036 20,413
Institution 3,931 4,024 4,285 4,513 4,515 3,761 2,691 3,926 Recreation 9,119 7,905 7,593 6,391 7,101 2,676 2,613 2,719 Agriculture 34 33 34 34 34 0 0 0
Unitary 543 542 543 543 340 0 0 0
Unknown 1,130 1,149 1,178 1,192 0000
Net Secured Value 230,626 233,578 590,079 607,137 626,121 646,586 671,692 695,389 Unsecured 31,513 29,641 31,347 31,275 32,889 32,288 31,556 33,240 Net Taxable Value 262,139 263,219 621,426 638,412 659,009 678,874 703,249 728,629 Source: Mendocino County Assessor data, MuniServices, LLC / Avenu Insights & Analytics Use code categories are based on Mendocino County Assessor's data

City of Fort Bragg, California
Last Nine Fiscal Years
Residential,
Commercial,  428,620
163,238
Industrial, 39,219
Miscellaneous,
33,941
Vacant, 22,554
Professional,
20,817 Institution, 4,429
Recreation, 2,762
2020‐21 Assessed Value
145
2011‐12 2012‐13 2013‐14 2014‐15 2015‐16 2016‐17
COUNTY GENERAL FUND 0.745000 0.745000 0.745000 0.745000 0.745000 0.745000 CITY OF FORT BRAGG 0.255000 0.255000 0.255000 0.255000 0.255000 0.255000 TOTAL 1.000000 1.000000 1.000000 1.000000 1.000000 1.000000 Override Assessments
LOCAL SPECIAL DISTRICSTS 0.012000 0.012000 0.011000 0.026000 0.025000 0.018000 SCHOOLS 0.111000 0.119000 0.114000 0.101000 0.107000 0.115000 TOTAL 0.123000 0.131000 0.125000 0.127000 0.132000 0.133000 TOTAL TAX RATE 1.123000 1.131000 1.125000 1.127000 1.132000 1.133000 Source:  Mendocino County Auditor/Controller data, MuniServices, LLC / Avenu Insights & Analytics Source: 2010‐11 and prior, previously published CAFR Report TRA 001‐001 is represented for this report
Rates are not adjusted for ERAF
Last Ten Fiscal Years
City of Fort Bragg
Direct and Overlapping Prope
146
2017‐18 2018‐19 2019‐20 2020‐21

0.745000 0.745000 0.745000 0.745000

0.255000 0.255000 0.255000 0.255000

1.000000 1.000000 1.000000 1.000000

0.026000 0.024000 0.024000 0.023000

0.107000 0.114000 0.107000 0.101000

0.133000 0.138000 0.131000 0.124000

1.133000 1.138000 1.131000 1.124000
147
City of Fort Bragg, California
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
Taxpayer Taxable Value ($)
Percent of Total
City Taxable
Value (%)
Taxable Value
($)
Percent of
Total City
Taxable Value
(%)
Mendocino Railway 17,067,924            2.28%
RAP Investors LP 11,727,177            1.57% 5,390,174           0.86% Boatyard Associates Phase II The 10,666,731            1.42% 9,105,795           1.45% Georgia Pacific LLC 8,856,946              1.18% 31,018,142 4.95% Safeway Inc 7,148,356              0.95% 7,175,871           1.15% North Coast Brewery 7,021,402              0.94% 2,716,933 0.43% Anderson Logging 5,447,561              0.73% 3,315,398 0.53% Colombi Jeanette Succttee 5,167,228              0.69%
Hurst Jason S 5,003,053              0.67%
Tanti Family II LLC 4,737,667              0.63%
Kao Kuami 4,684,566              0.63% 4,063,335           0.65% Ansari Ghulam Murtaza & Tenzila 4,534,135              0.61% Kashi Keshav Investments LLC 4,443,280              0.59% 4,289,706           0.68% Grosvenor Van Ness Associates 4,370,400              0.58% 3,730,800 0.60% Longs Drug Stores California LLC 4,073,878              0.54% 3,825,816           0.61% Ray Ronald R Ttee 4,023,757              0.54%
Fort Bragg Hotel LLC 3,773,139              0.50%
Keaton Richard J & Julie 3,379,927              0.45% 2,886,371 0.46% Fort Bragg Investments LLC 3,227,961              0.43% Moura Senior Housing 2,846,694              0.38% 2,406,352           0.38% Kemppe Liquid Gas Corporation 2,815,632              0.38% RBJ & Associates LLC 2,764,254              0.37% 2,434,435 0.39% Taubold Timothy E Ttee 2,694,373              0.36%
Miller Helen TTEE 2,678,667              0.36% 2,291,250 0.37% Country Properties LLC 2,604,949              0.35%
Affinito Dominic J Juliette C 3,221,582           0.51% Bell Ila Lynn Ttee 3,019,943           0.48%
Braxton Senior Living Property 3,351,253           0.53% Colombi Robert Ttee 4,294,241           0.69%
Comcast 4,142,833           0.66%
Federal National Mortgage Asso 2,288,442           0.37% Feil Scott E Diana E 5,955,220           0.95%
Hurst James C Barbara J Ttees 4,328,228           0.69% North Otown Industrial Center 3,434,886           0.55% Noyo Vista Inc. 2,846,204           0.45%
Tradewinds Lodge 7,190,604           1.15%
Total Top 25 Taxpayers 135,759,657 18.13% 128,723,814 20.54% Total Taxable Value 748,729,937 100.00% 626,654,379 100.00% Source:  Mendocino County Assessor data, MuniServices, LLC / Avenu Insights & Analytics 2020‐21 2011‐12
148
Fiscal
Year Taxes Levied
Ended for the Percentage
June 30, Fiscal Year Amount of Levy
2011 299,429 $ 287,121 $ 95.9%
2012 294,235 283,594 96.4%
2013 251,307 243,397 96.9%
2014 253,017 245,915 97.2%
2015 257,387 250,358 97.3%
2016 265,826 258,276 97.2%
2017 268,987 264,012 98.2%
2018 275,316 267,695 97.2%
2019 N/A N/A N/A
2020 N/A N/A N/A
Note: Mendocino County does not track collections of delinquent taxes by year in subsequent years.

Source: Mendocino County Auditor-Controller's Office
Collected within the
Fiscal Year of the Levy
City of Fort Bragg, California
Property Tax Levies and Collections
For the last ten fiscal years
$‐
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
2011 2012 2013 2014 2015 2016 2017 2018
Taxes Levied Taxes Collected
149
Fiscal
Year Total
Ended Certificates of Capital Governmental Certificates of Notes Capital June 30, Participation Leases Activities Participation Payable Leases 2012 (2) $ - 943 $ 943 $ 3,237 $ 1,481 $ 626 $
2013 - 842 842 3,013 1,375 457
2014 - 777 777 3,217 1,314 367
2015 - 660 660 2,896 1,207 240
2016 539 539 2,578 1,102 123
2017 - 412 412 2,252 975 -
2018 - 280 280 1,913 846 -
2019 - 143 143 6,568 741 -
2020 - - - 6,182 633 -
2021 - - - 5,791 529 -
N/A indicates information is not available
(1) See Schedule of Demographic and Economic Statistics for personal and per capita data.

Source: City Finance Department
(2) RDA bonds included from 2006 to 2011 are not included in 2012 and after due to the dissolution of the Redevelopment Agency.

Governmental Activities Business-type Activities
City of Fort Bragg, California
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(In Thousands, Except Per Capita Amount)
150
Total Total Percentage
Business-type Primary of Personal Per
Activities Government Income (1) Capita (1)
$ 6,287 5,344 $ 4.4% 867 $
5,687 4,845 3.9% 778
5,675 4,898 3.7% 772
5,003 4,343 3.2% 681
4,342 3,803 2.7% 566
3,639 3,227 2.1% 474
3,039 2,759 1.7% 405
7,452 7,309 4.2% 992
6,815 6,815 3.6% 918
6,320 6,320 3.1% 853
151
Legal Debt Margin Information
2012 2013 2014 2015 2016
Assessed Value 603,272 $ 579,450 $ 585,992 $ 590,079 $ 607,137 $ Conversion Percentage 25% 25% 25% 25% 25%
Adjusted Assessed Value 150,818 144,863 146,498 147,520 151,784 Debt Limit Percentage 15% 15% 15% 15% 15%
Debt limit 22,623 21,729 21,975 22,128 22,768
Total net debt applicable to limit - - - - -
Legal debt margin 22,623 $ 21,729 $ 21,975 $ 22,128 $ 22,768 $ Total net debt applicable to the limit
as a percentage of debt limit 0% 0% 0% 0% 0%
Source: City Finance Department
The City does not have any outstanding general obligation debt subject to the limit.

City of Fort Bragg, California
Last Ten Fiscal Years
(Dollars in thousands)
(Fiscal year ended June 30)
Notes: The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed secured tax valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of the assessed value for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state. 152
2017 2018 2019 2020 2021
$ 646,586 626,121 $ 671,692 $ 695,389 $ 715,581 $
25% 25% 25% 25% 25%
161,647 156,530 147,520 173,847 178,895
15% 15% 15% 15% 15%
24,247 23,480 22,128 26,077 26,834
- - - -
$ 24,247 23,480 $ 22,128 $ 26,077 $ 26,834 $
0% 0% 0% 0% 0%
153
2020-21 Assessed Valuation: $ 748,746,723
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2021 % Applicable (1) Debt 6/30/2021 Redwoods Joint Community College District $ 23,865,000 4.059% 968,680 $ Fort Bragg Unified School District 40,687,337 37.771% 15,368,014 Mendocino Coast Hospital District 4,130,746 20.611% 851,388 City of Fort Bragg - 100% -
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 17,188,082 $
OVERLAPPING GENERAL FUND DEBT:

Mendocino County Certificates of Participation 14,710,000 5.925% 871,568 $ Mendocino County Pension Obligation Bonds 39,655,000 5.925% 2,349,559 TOTAL OVERLAPPING GENERAL FUND DEBT 3,221,127 $
OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 100.000% 3,180,000 3,180,000 DIRECT DEBT $ -
TOTAL OVERLAPPING DEBT $ 23,589,209
COMBINED TOTAL DEBT $ 23,589,209 (2)
Ratios to 2020-20 Assessed Valuation:

Direct Debt 0.00%
Total Overlapping Tax and Assessment Debt 2.30%
Combined Total Debt 3.15%
Ratios to Redevelopment Successor Agency Incremental Valuation ($226,369,919):

Total Overlapping Tax Increment Debt 1.40%
Source: MuniServices, LLC/ Avenu Insights & Analytics
City of Fort Bragg, California
Direct and Overlapping Debt
Current Year
June 30, 2021
(1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value.

Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations.
154
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155
Fiscal
Year Less: Net Total
Ended Revenues Operating Available Debt
June 30, & Transfers Expenses
1 Revenue Principal Interest Service Coverage
2012 $ 1,585 2,044 $ 459 $ 360 $ 158 $ 518 $ 0.9
2013 1,623 2,420 797 327 151 478 1.7
2014 1,953 2,172 219 369 171 540 0.4
2015 1,806 2,595 789 493 147 640 1.2
2016 1,834 3,085 1,251 490 132 622 2.0
2017 1,378 3,534 2,156 505 75 580 3.7
2018 1,592 2,909 1,317 390 62 452 2.9
2019 1,480 3,077 1,597 395 53 449 3.6
2020 1,275 3,181 1,905 406 74 480 4.0
2021 1,303 3,660 2,357 410 65 475 5.0
1 Operating expenses exclude depreciation
Source: City Finance Department
Water Fund Debt
Debt Service
City of Fort Bragg, California
Pledged Revenue Coverage
For the Last Ten Fiscal Years
(Dollars in Thousands)
Business-type Activities
156
Less: Net Total
Revenues Operating Available Debt
& Transfers Expenses
1 Revenue Principal Interest Service Coverage
$ 2,637 2,943 $ 306 $ 40 $ 19 $ 59 $ 5.2
2,733 3,263 530 40 17 57 9.3
2,633 2,985 352 45 17 62 5.7
2,470 3,184 714 45 16 61 11.7
2,568 3,322 754 50 12 62 12.2
2,189 4,457 2,268 50 9 59 38.4
2,270 3,495 1,225 55 6 61 20.1
2,321 5,938 3,617 55 13 68 53.2
1,913 8,128 6,215 86 85 181 36.3
2,129 4,017 1,888 87 98 185 10.2
Sewer Fund Debt
Debt Service
Business-type Activities
157
Fiscal Year Population (1)
Personal Income
(in thousands)
Per Capita Personal
Income (2) Median Age (3)
Public School
Enrollment
City Unemployment Rate (%)
(4)
2011‐12 7,255 143,775 19,817 40.5 1,904 10.8%
2012‐13 7,311 146,997 20,106 37.4 1,917 10.8%
2013‐14 7,350 153,410 20,872 36.8 1,870 8.7%
2014‐15 7,343 154,002 20,973 38.2 1,873 4.2%
2015‐16 7,672 160,798 20,959 38.5 1,934 4.5%
2016‐17 7,772 170,733 21,968 36.6 1,891 4.0%
2017‐18 7,512 175,523 23,366 40.0 1,920 3.0%
2018‐19 7,478 184,300 24,646 39.2 1,884 2.4%
2019‐20 7,427 190,379 25,633 39.8 1,911 13.0%
2020‐21 7,409 204,996 27,668 39.0 1,779 8.1%
City of Fort Bragg, California
Demographic and Economic Statistics
Last Ten Fiscal Years

4.) Unemployment Data are provided by the EDD's Bureau of Labor Statistics Department.

3.) Public School Enrollment is for the Fort Bragg Unified School District.

Source: MuniServices, LLC / Avenu Insights & Analytics
Source: The California Department of Finance demographics estimates now incorporate 2010 Census counts as the benchmark

1.) Population Projections are provided by the California Department of Finance Projections.

2.) Income Data is provided by the U.S. Census Bureau, 2010 American Community Survey. 6830
6950
7070
7190
7310
7430
7550
7670
7790
Population
$15,000
$17,000
$19,000
$21,000
$23,000
$25,000
$27,000
$29,000 Per Capita Personal Income
1700
1750
1800
1850
1900
1950
K‐12 Public School Enrollment

0.02 0.04

0.06 0.08

0.1 0.12

0.14 Average Unemployment Rate
158
Business Name
Number of
Employees
Percent of
Total
Employment
(%)
Number of
Employees
Percent of
Total
Employment
(%)
Mendocino Coast District Hospital 348 11.72% 350 11.74% Mendocino Coast Clinics Inc 120 4.04% 114 3.83%
Mendocino County** 108 3.64%
Sherwood Oaks Health Ctr 90 3.03% 92 3.09%
Fort Bragg Unified School District* 256 8.62%
Parents & Friends Inc 152 5.12%
Safeway 128 4.31%
North Coast Brewing CO Inc (1) 106 3.57% 85 2.85%
Anderson Logging Inc 77 2.59% 87 2.92%
Silver At The Wharf (Anchor Lodge) 73 2.46% 55 1.85%
City of Fort Bragg 53 1.78%
Ocean Fresh Seafood Products 90 3.02%
Caito Fisheries 90 3.02%
Skunk Train 44 1.48%
Total Top Employers 1,458 49.09% 1,060 35.57%
Total City Employment (2) 2,970 2,980
Source: 2011‐12, previously published ACFR
Results based on direct correspondence with city’s local businesses. (1) Includes summer and seasonal employees
(2) Total City Labor Force provided by EDD Labor Force Data *Excludes non‐bargaining on call subs or sports coaches. **Includes satellite offices of county departments.

Source: MuniServices, LLC / Avenu Insights & Analytics
City of Fort Bragg, California
Principal Employers
Last Fiscal Year and Seven Years Ago
2020‐21 2011‐12
159
City of Fort Bragg, California
Full-time and Part-time City Employees by Function (Full-Time Equivalent) Last Ten Fiscal Years
(Fiscal year ended June 30)
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General Government
Administrative Services 6.00 4.80 6.00 6.00 6.50 6.50 7.00 7.00 6.50 6.00 Finance 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 5.00 Public Safety
Police 21.00 21.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 Community Services
Community Development 3.80 3.80 4.30 4.00 4.30 4.50 4.80 4.80 4.30 4.00 Public works 12.60 12.60 13.60 12.60 12.80 12.80 14.00 14.00 12.80 13.00 Enterprise Funds 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 7.00 Total 54.20 55.40 57.90 56.60 57.60 57.80 59.80 59.80 57.60 57.00 Source: City Finance Department
Administrative
Services

6.50 11% Finance

4.00 7%
Police

22.00 38%
Community
Development

4.30 8%
Public works

12.80 22%
Enterprise Funds

8.00 14%
Full-time and Part-time City Employees by
Function (Full Time Equivalent) FY 2021
160
City of Fort Bragg, California
Operating Indicators by Function
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function/Program 2012 2013 2014 2015 2016 2017 2018 2019 2020 Building Permits Issued 210 125 272 192 141 122 162 194 141 New Construction 3 27 2 7 6 4 9 12 N/A
Single Family Residential 2000 2 0 5 42
Second Unit 1111 3 4 4 83
Mixed Use, Commercial & Residential 0002 1 0 0 41
Multi-Family Residential 0010 0 0 0 20
Low Income Residential 0004 0 0 0 00
City Clerk
Council/Agency Resolutions Passed 93 108 87 127 98 122 121 92 98 Number of Ordinances Passed 9 2 4 3 5 6 8 9 5
Number of Contracts Approved 29 32 31 30 69 74 105 71 69 Number of PRA Requests Processed 26 33 35 74 73 79 146 145 N/A Public Safety
Traffic Accidents 139 163 174 172 221 160 145 147 221
Traffic Violations - DUI 33 62 45 26 28 45 49 40 28
Bookings 608 744 689 737 668 619 795 625 668
Moving Cites 841 1,001 1,614 949 498 344 428 368 498
Parking Cites 374 355 833 484 835 842 941 869 835
Field Interviews and Information Cases 1,450 2,211 1,301 1,217 1,403 1,936 1,289 1,217 Crime Reports 1,454 1,610 1,576 1,317 1,501 1,496 1,554 1,262 1,501 Fire 1
Total Number of Calls 500 632 525 617 579 665 626 752 579 Structure Fires 27 29 29 21 29 38 10 37 29
Vehicle Fires 9 9 17 9 3 16 5 4 3
Vegetation Fires 25 29 41 40 31 33 23 40 31
Misc Fires (Chimney, Debris, Electronically, etc.) 24 17 17 36 18 81 80 36 Medical Aid 110 209 142 163 150 199 197 248 150
Rescue 129 11 13 10 22 16 11 7 22
Hazardous Condition/Materials Calls 73 46 48 41 70 75 58 73 70 Mutual Aid/Agency Assist 3 6 9 12 18 23 18 12
Traffic Accidents 89 88 98 133 98 115 100 133
Services Call 128 115 117 96 91 80 99 126 91
Other Calls & Incidents 68 4 2 113 2 74 4 19 2
Water
Number of customer accounts billed 33 32,523 32 ,924 33 ,300 33 ,716 33 ,671 34 ,873 33 ,146 33 ,339 ,671 Water annual demand in thousand gallons 2 2,312 2 ,255 2 ,245 189 ,044 197 ,500 210 ,600 208 ,200 1 ,015 ,895 Available supply of water in thousand gallons 2 3,066 2 ,574 2 ,490 2 ,398 21 ,080 21 ,300 22 ,300 20 ,400 ,800 total Customer service calls 1 1,448 1 ,439 1 ,254 1 ,177 1 ,253 1 ,253 1 ,193 1 ,488 ,253 Meter installs/removals/change outs 2 40 11 14 16 14 24 13 16 Meter repairs 2 44 1 8 1 34 5 23 1
Leak investigations 21 16 3 6 11 34 29 61 11
Service profiles 93 81 52 57 65 31 63 61 65
Turn on/off 1 1,267 139 ,248 508 669 878 891 1 669 ,099 Manual Reads 565 527 513 453 416 444 126 111 416
Misc. 36 33 49 60 75 53 55 68 75
Wastewater
Customer service calls, wastewater 37 52 71 41 52 43 33 36 52 New customer sewer lines installed 0223 1 4 0 21
Sewer mains cleaned/flushed in miles 19 18 14 15.5 15 17.38 16 18 15 Sewer mains and laterals repaired in number of jobs 34 0 8 16 11 12 9 8 11 Sewer manholes inspected 373 371 362 363 363 374 374 374 363 Sewer manholes installed 1000 0 0 0 00
Sewer spill responses 1377 5 1 1 25
2 In some categories historical information is not available Source: Operating indicators were provided by the various operating departments. 1 The governing agency offer the Fort Bragg Volunteer Fire Department is the Fort Bragg Fire Protection Authority Joint Powers Agreement (JPA). The JPA is a board of directors formed in the 1989-90 fiscal year. It consists of two members from the Fort Bragg City Council appointed by the City's mayor, two members from the Fort Bragg Rural Fire District Board appointed by their chairman, and an "At Large" member appointed by the other four members. The City of Fort Bragg is responsible for 50% of the Fire Department budget.
161
City of Fort Bragg, California
Capital Asset Statistics by Function
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Police :

Stations 1111111111
Public works
Streets (miles) 26.4 26.4 26.4 26.4 26.4 26.4 27.2 27.2 26.4 26.4 Alleys (miles) 19 19 19 19 19 19 19 19 19 19
Storm drains (miles) 10 10 10 10 10 10 10 10 10 10
Streetlights 725 725 725 725 725 725 744 744 725 725
Sidewalks 40 40 40 40 40 40 40 40 40 40
Water
Water treatment plant 1111111111
Water mains (miles) 30 30 30 30 30 30 30.5 30.5 30 30
Raw water transmission line (miles) 5.75 5.75 5.75 5.75 5.75 5.75 5.85 5.85 5.75 5.75 Wastewater
Wastewater treatment plant 1111111111
Sanitary sewers (miles) 27 27 27 27 27 27 27 27 27 27
Parks and Facilities
Parks 3334445244
Recreational/Guest Facilities 3333333333
Government Facilities 2222222222
Source: City Finance, Public Works and Planning Departments 162
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