Fort Bragg City Council
February 13, 2023

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2022

CITY OF FORT BRAGG

CALIFORNIA
www.city.fortbragg.com 416 N.Franklin Street, Fort Bragg, CA 95437
This page intentionally left blank.

City of Fort Bragg, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2022
Prepared by City of Fort Bragg Finance Director
Isaac Whippy
This page intentionally left blank.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Table of Contents
i
Page
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) .............................................. 4 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, 2022
Table of Contents
ii
Page
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 – Nonmajor Governmental Funds .................................................................. 103 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds .......................................................................... 104 Combining Balance Sheet – Nonmajor Special Revenue Funds ............................................................... 110 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Special Revenue Funds  ...................................................................... 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, 2022
Table of Contents
iii
Page
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
iv
This page intentionally left blank.
v
INTRODUCTORY SECTION
 Letter of Transmittal
 Organizational Chart, Elected and Appointed Officials vi
This page intentionally left blank.
vii
January 31, 2023
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, 2022, 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, 2022, 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 4‐20 and 49‐92, respectively.
viii
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 2021 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.

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 ix
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, 2022, 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 2021/22.

Current Economic Conditions 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 the bed tax, and sales tax are the two largest sources of revenue for the City's General Fund and, in FY 2021/22, together makeup 55% 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 2021, Fort Bragg experienced a rebound in tourism.

Fort  Bragg is within  driving  distance  of San Francisco and Sacramento,  so  shorter  trips  by  car appear  to  be preferred getaway during the pandemic.

In FY 21/22, General Fund Tax Revenues continued  the strong  trends  from  the prior year beating last year's numbers. Transient Occupancy Tax recorded a 3.5% increase, and the City's General Fund Bradley Burns sales tax for the fiscal year was up 9% over the prior year.  In the first quarter of FY 2022/23. TOT revenue receipts declined by 10% compared to the prior quarter. Sales tax revenues for the first quarter of FY 2022/23 were also down by 2%.
$‐  $1.00  $2.00  $3.00  $4.00  $5.00  $6.00  $7.00  $8.00 10/11
11/12
12/13
13/14
14/15
15/16
16/17
17/18
18/19
19/20
20/21
21/22
SALES, TRANSIENT OCCUPANCY & PROPERTY TAXES
(IN MILLIONS)
Sales Tax TOT Property Tax
x
As  of  writing  this  letter,  inflation  and  the  likelihood  of  a recession  make  the  outlook  for  Fort  Bragg  challenging  to predict. Like the rest of the country, supply chain issues, fuel price  increases,  staffing  shortages,  and  increased  housing costs continue to challenge the local economy. Despite signs that inflation has started  to  recede, economists still expect higher  interest  rates  to  push  the  U.S.  economy  into  a recession  in  2023,  according  to  the  Wall  Street  Journal's latest quarterly survey.

The Federal Reserve had initially hoped it could bring down inflation with only a slowing in economic growth rather than an outright contraction, an outcome dubbed a "soft landing." But three‐quarters of respondents said the Fed wouldn't achieve a soft landing this year. While economists don't think a recession can be avoided, they expect it to be relatively shallow and short‐lived, in line with recent surveys. On average, they expect the gross domestic product to expand at a 0.1% annual rate in the first quarter of 2023 and contract 0.4% in the second. They see no growth for the third quarter and a 0.6% growth rate for the fourth. Economists expect GDP to stagnate this year, posting growth of just 0.2% in the fourth quarter of 2023 compared with the fourth quarter of 2022. In the WSJ survey in October, economists forecast 0.4% GDP growth in 2023.

As  measured  by  the  year‐over‐year  change  in  the
consumer‐price  index,  inflation  has  eased  from  9.1%  last June to 6.5% in December, and economists expect it to fall to 3.1% by the end of 2023, a lower endpoint than the 3.3% they  expected  in  the  last  survey,  in  October.  They  see  it ending in 2024 at 2.4%.

The City continues  to look at opportunities  to diversify its economy.  Initiatives,  which  began  in  FY  2021/22  and  will continue into FY 2022/23, including 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 tourists to visit the CBD.

The Blue Economy Regional Coalition is the 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.

The pandemic highlighted the importance of affordable and reliable broadband to our community and other rural communities nationwide. 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 create 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 $1.75 million in American Rescue Plan Act (ARPA) funds in FY 21/22 xi
and has set aside those funds for the Municipal Broadband project. The City is also seeking additional funding from other grants and opportunities as part of the federal and government's emphasis on infrastructure and broadband.

Until March 2021, the City had experienced five years of strong employment trends and low unemployment rates. Due to the Pandemic, unemployment peaked in April 2021 at 14% but stabilized through FY 2020/21. As of November 2022, the unemployment rate for Fort Bragg had dropped to 3.3%, 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 3.7% as of December 2022.

The number of homes sold in the Fort Bragg 95437 zip code declined by 7% in FY 2021/22, and median home prices increased by 10%  for  the year‐end of  June 30, 2022. 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 sales have been made to individuals and families who have moved out of urban areas.
xii
The  median  home  price  in  June  of  2022  in  the
95437 zip code was $585,000. 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 increase remained flat in FY 2021/21 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 employer 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.

To increase workforce housing in our community, the City has incubated and is staffing a Community Land Trust (CLT). A CLT is a 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 aim to promote affordable housing and contain  legal  provisions  governing  ownership  and  transfer  to  keep  units  affordable  in  perpetuity.

Homeownership  provides  the  opportunity  for  working  families  and  individuals  to  build  wealth  and  create housing security.

Long‐term Financial Planning
A review of the City's Fiscal Policies, including Fund Balance & Reserve Policies, was conducted as part of the FY 2022/23 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 the Fiscal year‐end 2021/22, these reserves total $5,091,306.
 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  the General Fund's liquidity and adequate cash  flow  throughout  the year. This  reserve is necessary to accommodate fluctuations in the timing of expenditures and the receipt of revenues.

With  Council  authorization,  the  reserve  is  a  committed  fund  balance  and  may  be  used  for unforeseen operating or capital needs. At Fiscal Year‐end 2021/22, 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 2021/22, the reserve balance is $200,000. $‐
$20
$40
$60
$80
Median Price for Homes in 95437 Zip Code
(in thousands)
xiii
 Recession Reserve: The General Fund will maintain a Recession Reserve to stabilize the delivery of City services during periods of severe operational budget deficits and 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 2021/21, 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  2022/22  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.

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 2025/26.

The City's General Fund operated at a record surplus for FY 2020/21 and the 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, 2021, 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 2021 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  continue  to grow,  one  of  the  challenges  the  City  faces is  the  same as many  other employers – recruiting and retaining qualified staff.
xiv
In FY 21/22, General Fund Tax Revenues continued their strong performance from the prior year beating last year's numbers. The accumulated fund balance for the General Fund is $5,091,306. The City adopted a balanced General Fund budget for FY 2022/23 and projected a small surplus of $198k.

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 2021/22, which set records for both revenue sources.

A  major  project  for  FY  2021/22  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, 2022, is at $10.7 million. On November 10, 2022, 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 the acquisition  of  the  southern  portion  of  the former Timber Mill property. The $3.5 million funds were subsequently returned in FY 2022/23. 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 place the City in a better position to manage pension obligations. On June 30, 2022, CALPERS realized a ‐7.5% return which will add to the Unfunded Liability. The City Council approved the set‐up of a Section‐ 115 Trust in FY 22/23 to absorb down years losses by CALPERS.

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, inter‐fund 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  significantly  impacted  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; in other years (such as the current reporting period) they may have a relatively equal impact.

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, 2022. This was the tenth 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. xv
A  Certificate  of  Achievement  is  valid  for  a  period  of  one  year  only.  We  believe  that  our  current  Annual Comprehensive  Financial  Report  meets  the  Certificate  of  Achievement  Program's  requirements  and  will  be submitted to the GFOA to determine its eligibility for another certificate.

Acknowledgments
The preparation of this Annual Comprehensive Financial Report could not have been accomplished on a timely basis without the support and cooperation of many City of Fort Bragg staff members. Special recognition is given to  the  Finance  Department  staff.  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.

I would also like to thank the Mayor and members of the City Council for their attentiveness and support in planning and conducting the City's financial operations in a responsible and responsive manner.

Respectfully submitted,
Peggy Ducey
Isaac Whippy
Finance Director
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2022
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
xviii
This page intentionally left blank.

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
1 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City
Council City of Fort Bragg
Fort Bragg, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, 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, 2022, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, the aggregate remaining fund information and the budgetary comparison information of the City, as of June 30, 2022, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

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

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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

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

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

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 4–20, the Schedule of Changes in the Net OPEB Liability and Related Ratios on page 94, the Net OPEB Liability Schedule of Contributions on page 95, the City’s Schedules of Contributions, Pensions 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 is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 3 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements 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 is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. 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.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory and Statistical Sections but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. ]]TVcT? \ÇvA
January 31, 2023 JJACPA, Inc.

Dublin, CA
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Management’s Discussion and Analysis
4 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, 2022. It should be read in conjunction with the accompanying transmittal letter and basic financial statements.

FINANCIAL HIGHLIGHTS
 The City's Net Position increased by $4 million (assets exceeded liabilities) to $103 million as of June 30, 2022.
 The Net position for governmental activities ended the year at $41.4 million, while the net position for business activities was $61.7 million. Of the $41.4 million in total governmental net position, a negative $4 million was characterized as an 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.

The unrestricted position is now $5.3 million due to restructuring the City’s UAL with CALPERS.  General Fund revenues continued their strong performance from a year ago. Transient Occupancy Tax (TOT) recorded its best year to date at $3.4 million and Sales tax at $3.2 million.  General Fund expenditures were $10.3 million, $283k below budget estimates. The positive variance resulted from cost savings, particularly personnel costs, insurance, and retiree medical costs.  The City's General Fund recorded a surplus for FY 2021/22 and the fund balance improved by $910,288.  The City's governmental funds reported a combined fund balance of $8.6 million. Committed balances include an Operating Reserve of $1.9 million, a Recession Reserve of $489,929, a Litigation Reserve of $200,000, and $3.5 million of restricted funds. The unassigned fund balance increased to $2.4 million.  The  Water  enterprise  Net  Position  increased  by  $3  million  (16%),  the  Wastewater  enterprise  Net Position decreased by $385k, and the C.V. Starr Center Net Position also decreased by $323k. The most significant draw on C.V. Starr Center Net Position is the non‐cash item depreciation.  Total liabilities increased by $5.3 million to $28.7 million during the fiscal year.  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) 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. 3) 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, 2022
Management’s Discussion and Analysis
5 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, 2022
Management’s Discussion and Analysis
6 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, 2022, 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, 2022, 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, 2022
Management’s Discussion and Analysis
7 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, 2022
Management’s Discussion and Analysis
8 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, 2022, and June 30, 2021.

Govern‐ Business‐ Govern‐ Business‐
mental type mental type
Activities Activities Total Activities Activities Total Current and other assets 17,032,985 $  15,282,144 $  32,315,129 $    12,021,612 $  14,351,190 $  26,372,802 $ Noncurrent assets 41,405,840     54,120,425     95,526,265       41,685,886     52,286,470     93,972,356 Total assets 58,438,825     69,402,569     127,841,394     53,707,498     66,637,660     120,345,158 Deferred outflows of resources 9,975,152       445,703          10,420,855       2,515,812       473,927          2,989,739 Total assets and deferred outflows of
resources 68,413,977     69,848,272     138,262,249     56,223,310     67,111,587     123,334,897 Current and other liabilities 1,244,934       1,366,280       2,611,214         1,271,585       1,195,532       2,467,117 Long‐term liabilities 20,378,052     5,713,620       26,091,672       13,926,679     7,055,787       20,982,466 Total liabilities 21,622,986     7,079,900       28,702,886       15,198,264     8,251,319       23,449,583 Deferred inflows of resources 5,316,962       997,206          6,314,168         531,965          143,822          675,787 Total liabilities and deferred  inflows of
resources 26,939,948     8,077,106       35,017,054       15,730,229     8,395,141       24,125,370 Net position:

Net investment in
Capital Assets 30,092,089     48,678,202     78,770,291       41,685,886     46,331,468     88,017,354 Restricted 6,078,004       108,064          6,186,068         2,947,301       108,064          3,055,365 Unrestricted (deficit) 5,303,936       12,984,900     18,288,836       (4,140,106)      12,276,914     8,136,808 Total net position $  61,771,166 41,474,029 $  103,245,195 $  40,493,081 $  58,716,446 $  99,209,527 $ 2022 2021
Summary of Net Position
As of June 30, 2022, the City's net position was $103.2 million, an increase of $4 million. Year over year, assets increased by $7.5 million, and liabilities increased by $5.2 million with the issuance of 2021 Lease Revenue Bonds of $11.4 million. 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 $1.6 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, 2022
Management’s Discussion and Analysis
9 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 increased in FY 2021/22 by $1.5 million to a total of $95.5 million. The increase is attributed to infrastructure improvements for the Streets Project and Maple Street completion offset by retiring capital assets, particularly in the business type, by $331k. Citywide total assets placed in Service equaled $3.8 million, of which $2.5 million was transferred from Construction in Progress to Infrastructure for the Streets Rehabilitation and Maple Street Project.

Depreciation was $3.2 million.

The restricted net position of $6 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. In FY 21/22, $3.5 million of the remaining 2021 Lease Revenue Proceeds earmarked for property purchase contributed to the increased restricted net position.

The Unrestricted net position increased $4.8 million over the previous year and now stands at $18.2 million.

Governmental activities saw an increase of $9.4 million in unrestricted net position from the Debt issuance‐ $3.5 million, and business‐type activities also saw increases of $707,986. The negative unrestricted position of $4.1 million for governmental activities in FY 20/21 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 is $29.7 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 the City's OPEB liability, and a deferred outflow on reporting the City's pension plan liability. The City's deferred outflows increased by $7.4 million on a year‐over‐year basis from the issuance of debt to restructure the City’s Unfunded Liability with CALPERS.

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 the City's OPEB liability and a deferred inflow pertaining to reporting the City's pension plan liability. The City's deferred inflows decreased by $10.8 million.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Management’s Discussion and Analysis
10 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
The change in net position for the fiscal years ended June 30, 2022, and 2021, follows:

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

Program revenues:

Charges for services 3,908,237 $                   7,599,209 $            11,507,446 $                2,813,140 $                   7,677,502 $            10,490,642 $ Grants and contributions:

Operating 3,967,530                      ‐                                3,967,530                      3,973,620                      ‐                                3,973,620 Capital 186,554                         645,986                   832,540                         1,584,476                      ‐                                1,584,476 General revenues:

Property taxes and assessments 1,214,292                      268,596                   1,482,888                      1,151,947                      262,787                   1,414,734 Sales and use tax 3,426,543                      1,211,340               4,637,883                      3,127,059                      1,099,510               4,226,569 Transient occupancy taxes 3,444,990                      ‐                                3,444,990                      3,321,928                      ‐                                3,321,928 Other taxes 851,640                         ‐                                851,640                         810,652                         ‐                                810,652 Unrestricted investment earnings (7,606)                            104,244                   96,638                           (11,488)                          115,440                   103,952 Other general 387,255                         50,000                     437,255                         265,673                         ‐                                265,673 Total revenues 17,379,435                    9,879,375               27,258,810                    17,037,007                    9,155,239               26,192,246 Expenses:

Governmental activities:

General government 4,514,625                      ‐                                4,514,625                      3,580,513                      ‐                                3,580,513 Public safety 4,903,019                      ‐                                4,903,019                      4,385,869                      ‐                                4,588,899 Public works 3,551,490                      ‐                                3,551,490                      2,438,493                      ‐                                2,235,827 Community development 825,072                         ‐                                825,072                         4,104,663                      ‐                                4,104,663 Marketing and promotion 226,874                         226,874                         93,060                           93,060 Interest and fiscal charges 438,129                         ‐                                438,129                         37,964                           ‐                                37,964 Business‐type activities:

Water ‐                                      2,676,522               2,676,522                      ‐                                      1,687,603               1,687,603 Wastewater ‐                                      3,942,009               3,942,009                      ‐                                      3,043,007               3,043,007 C.V. Starr Center ‐                                      2,145,402               2,145,402                      ‐                                      1,228,892               1,228,892 Total expenses 14,459,209                    8,763,933               23,223,142                    14,640,562                    5,959,502               20,600,428 Excess (Deficiency) of revenues over
expenditures before transfers 2,920,226                      1,115,442               4,035,668                      2,396,445                      3,195,737               5,592,182 Transfers (1,939,278)                     1,939,278               ‐                                      (900,908)                        900,908                   ‐ Change in net position 980,948                         3,054,720               4,035,668                      1,495,537                      4,096,645               5,592,182 Net position:

Beginning of year 40,493,081                    58,716,446             99,209,527                    38,997,544                    54,619,801             93,617,345 End of year 41,474,029 $                61,771,166 $          103,245,195 $              40,493,081 $                58,716,446 $          99,209,527 $ 2022 2021
Changes in Net Position
The City's expenses for FY 21/22 totaled $23.2 million, increasing $2.6 million from FY 20/21. 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.

Overall, governmental expenses totaled nearly $14.4 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 $8.8 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, 2022
Management’s Discussion and Analysis
11 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Revenues
The City's total revenues for Governmental and Business‐type Activities were $27.2 million for the fiscal year that ended June 30, 2022, representing a 4 percent increase over the previous fiscal year. Governmental Activities increased by $342,428, and Business‐type Activities decreased by $724,136 or 8 percent. Significant revenues for the City for FY 2021/22 were derived from charges for services (42%), grants and contributions (14%), sales and use Tax (17%), transient occupancy tax (12%), and property tax (1%).

Following is a discussion of variances in key revenues for the FY 2021/22:

1. Charges for Service's overall revenue increased by 9 percent compared to the previous fiscal year, primarily due to governmental activities. Services include mostly salary, benefit, overhead charges to the Business‐type Activities, inter‐fund reimbursements, and charges to various grants for staff time and administrative costs reimbursements.

Cost allocation plan revenues increased year over year, attributed to the increase in reimbursements from the enterprise funds. During the fiscal year, there was significant work logged for Water Conservation in response to the drought, infrastructure improvements, and operating needs for the enterprise fund.  Other charges for services, including Police Department fingerprinting, developer deposit (DDA) reimbursements, code enforcement, and building permits, also recorded declines from the prior year. Charges for services for Business‐type activities are almost entirely user charges. This category was down 1 percent or $78,293, primarily due to the water emergency in FY 21/22 caused by the reduced flows of the City's water sources and a lack of rainfall. Additionally, the Enterprise Funds waived the last round of scheduled approved rate increases in FY 20/21, which would have increased Water rates by 5 percent and Wastewater rates by 3 percent.

Charges for
Services
Grants &
Contributions
Sales and Use
Tax
Transient
Occupancy Tax Property Tax
2022 11,507 4,800 4,638 3,445 1,483
2021 10,491 5,558 4,227 3,322 1,415
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
In Thousands
Significant Revenue Sources
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Management’s Discussion and Analysis
12 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued

2. Grants and Contributions annual receipts for Operating Grants decreased by $758,026 (13%) due to the  completion  of  the  Wastewater  Treatment  Plant  upgrade  funded  by  the  US  Department  of Agriculture grant  ($1.3M),  the HEAP Grant  for  the DANCO Housing project, $3 million. In FY 21/22, Grants  included  the  Community  Development  Block  Grants  (CDBG),  which  consist  of  the  Code enforcement program, Business Assistant Loan Program, Fire Station Design Rehab, Parents & Friends Facility, Utility Business Assistance Loans, and general administration. Often operating grants fluctuate yearly depending on when program activities are implemented. Additionally, the City received the 2nd trench  of America  Rescue  Plan Act  funds  (ARPA),  $872,081. These  funds  have  been earmarked  for Broadband.

3. Sales and Use 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 in FY 20/21. Construction, grocery stores, and internet sales categories all recorded the best quarters at the onset of the Pandemic. In FY 21/22, Sales tax continued the strong performance and recorded a $411,314 (9%) increase. Inflation remained in the economy at the end of the quarter; according to the U.S. Bureau of Labor Statistics, Consumer Price Index was 7.9%. High inflation rates didn’t affect consumer spending habits, but we could see this revenue category decline as the economy contracts in FY 22/23. Sales and use taxes for Business‐type Activities are received for the C.V. Starr Center special sales tax ($1.2 million), up 10 percent or $111,830 from the previous fiscal year. The Tax subsidizes 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 at $3.3 million. In FY 21/22, this revenue category continued its strong performance, beating last year’s record by $123,062 (3%). International and domestic travel restrictions contributed to the strong results, with travel being more local. Average Nightly Rates have also increased by 10%, with Occupancy Rates rising by 2%. Furthermore, Visit Fort Bragg's marketing efforts have contributed to the success of this revenue category.

5. Property Tax increased by 4% in FY 2021/22 and is expected to grow at similar modest increases of 2‐3% per year due to the rise in home‐for‐sale prices. The median home price in June of 2022 in the 95437 zip code was $419,000, an increase of 5% over June 2021. Property taxes received are accounted for in the General Fund, $1.2 million; C.V Starr Center, $269k; and the Fire Equipment Fund, $57k.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Management’s Discussion and Analysis
13 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Revenues by source for the fiscal years ended June 30, 2022, and 2021, are as follows:

Charges
for
Services
Capital
Grants
Sales &
Use Tax
Transient
Occupanc
y Tax
Operating
Grants
Property
Taxes
Other
Taxes
Interest &
other
2022 3,908 187 3,427 3,445 3,968 1,214 198 20
2021 2,813 1,584 3,127 3,322 3,974 1,152 811 112
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 2022 7,599 646 1,211 269 154
2021 7,678 0 1,100 263 115
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, 2022
Management’s Discussion and Analysis
14 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Expenses
The City's Governmental and Business‐type Activity expenses for FY 2021/22 totaled $23.2 million, representing an 11 percent increase compared to the previous fiscal year. Governmental Activity expenses were $14.6 million or 62 percent of total costs, while Business‐type Activities were $8.7 million or 38 percent of total expenses. Public safety costs represented 21 percent of citywide costs, followed by General Government at 19 percent, Wastewater at 17 percent, and Public Works at 15 percent.

Following is a discussion of significant variances in key expense categories for the fiscal year 2021/2022:

1. Public Safety costs increased by $517k or 11 percent from the previous fiscal year. Costs returned to pre‐ pandemic levels. A shortage of police officers locally and nationally has driven wages up yearly for the last several years. The Fort Bragg City Code Chapter 2.68 provides for an annual salary survey of Mendocino County law enforcement positions. It establishes that Fort Bragg's salaries will, at a minimum, be set at the average of the other local entities.  As of January 1, 2021, Police Officer wages increased by 4.9% and 1% on January 1, 2022, in addition to a Cost of Living Adjustment (COLA) of 3%. Fort Bragg  Dispatch services provided by the City of Ukiah increased by 5%. The Department was awarded a Social Service Liason Grant by the California Department of Health Care Services (DHCS) of $222k through March 2023.

2. Public Works year‐over‐year expenses increased by $1.1 million or 45 percent. The increase is due to an increase in Depreciation costs of $609k, Cost Allocation by $72k, and increases in personnel costs.

Public Safety Public Works General
Government
Community
Development
Marketing
and
promotion
Interest and
Fiscal Charges
2022 4,903 3,551 4,515 825 227 438
2021 4,589 2,236 3,580 4,105 93 38
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, 2022
Management’s Discussion and Analysis
15 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Expenses, Continued

3. General Government expenses increased by $934k or 26 percent. The increase is attributed  to  the net increase in pension costs of $363k and the increase in personnel costs. 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 can start drawing from the fund to offset increasing costs in the coming years.

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

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Management’s Discussion and Analysis
16 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Expenses, Continued
Following is a discussion of significant variances in key business‐type expense categories for the FY 2021/22:

1. Wastewater  Enterprise  expenses  increased  by  $899k  or  29  percent.  Contractual  expenditures increased by $196k due  to increased Bio‐solids  removal costs. Administration costs account  for  the allocation of indirect and direct costs charged to the enterprise per the Cost Allocation Cost True‐up.

In FY 21/22, there was an increased amount of staff time spent on Wastewater tasks.

2. C.V. Starr Center expenses increased by $851k or 74 percent. The CV Starr center was closed in mid‐ March 2021 in compliance with Shelter‐In‐Place orders in response  to COVID. The Center remained closed  through  the  fourth  quarter  of  FY  2021/22.  As a  result,  personnel and  other  operating  costs increased compared to the previous year when they were closed. Utilities, mainly propane, increased by $244k to $322k, up 72 percent from pre‐covid levels.

3. Water Enterprise expenses increased by 989k or 58 percent, with increases in personnel costs and administration allocation. This was the first year where salaries and benefits were accounted for in the water enterprise fund. Historically, personnel costs were recorded in the Wastewater Enterprise and allocated back to the water enterprise. This change in methodology would allow for better budgeting of the enterprise's operating costs. Additionally, the Arreage Grant required the City to waive late fees associated  with  customer  accounts.  This  amounted  to  $30k.  Professional  Services  also  recorded increases of $36k.

Wastewater Enterprise C.V. Starr Center Water Enterprise 2022 3,942 2,145 2,677
2021 3,043 1,229 1,688
0 500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
In Thousands
Expense ‐ Business‐Type Activities
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Management’s Discussion and Analysis
17 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, 2022, and 2021 are as follows:

Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government $        1,964,633 4,514,625 $      3,508,168 $        2,089,303 $ Public safety           4,538,021 4,903,019         4,588,899           4,259,585 Public works           1,217,352 3,551,490         2,224,098           (769,768) Community development              (1,988,121) 825,072        4,160,458           531,267 Marketing and promotions              226,874 226,874             93,060                93,060 Interest and fiscal charges              438,129 438,129             37,964                37,964 Total 14,459,209 $     6,396,888 $      14,612,647 $     6,241,411 $ 2022 2021
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 ending June 30, 2022, the City's governmental funds reported combined fund balances of $12.8 million, an increase of $5.1 million or 66 percent over the previous year due to the 2021 Lease Revenue Bonds proceeds and increases in Sales Tax and Transient Occupancy revenues compared to the prior year.

General Fund
The general fund is the chief operating fund of the City. Overall, the general fund balance increased by $4.4 million to $8.5 million at the end of FY 2021/21. The general fund unassigned balance totaled $2.4 million— this increase of $910k resulted from a realized surplus budget. The committed fund balance totals $2.7 million. It includes the operating reserve of $1.9 million, $200k in the litigation reserve, and $490k in the Recession Reserve established this fiscal year.

Special Sales Tax – Streets
The Special Sales Tax for the street repairs fund decreased by $469k to $2 million in FY 2021/22. The Maple Street $1.8 million and 2020 Street Rehabilitation was funded in the prior year. In FY 2022/23, the 2022 Street Rehabilitation of $1.87 million will be funded and undertaken in FY 2022/23.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Management’s Discussion and Analysis
18 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.

Enterprise Funds
Enterprise funds increased the City's net position by $3 million (5%). The City has three business‐type activities:  Water, Wastewater, and the C.V. Starr Center.

The Water enterprise net position increased $3 million or 22 percent to $16.6 million; the Wastewater enterprise net position decreased by $358k or 1 percent to $24 million, and the C.V. Starr Center enterprise net position also recorded an increase of $332k or 1 percent to $20.7 million.

The Water enterprise capitalized costs of $1.98 million largely due to the Water Meter Replacement Project of a little over $2 million and design costs for the Water Treatment Plant $188k, Raw Water Line Replacement $176k, and the Pudding Creek Water Main $67k. These costs are Construction in Progress and will be fully capitalized once completed. Long‐term liabilities decreased by $393k due to regularly scheduled debt payments. Lastly, Water's operating revenues exceeded expenses by $3 million, with $2  million attributed to Capital Grants received for the Water Meter Replacement Project, 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 recorded a net operating loss of $358,445 as expenditures, including Depreciation, exceeded operating income. The payoff of Pension Liability costs reduced the Long‐term liability for the fund. Accounts payable decreased by $47k. The utility's user fees generate sufficient revenue to cover operating expenses, maintain an operating reserve and fund a capital reserve. Like the Water enterprise, the rate plan is designed to accumulate $1M per year in a capital project reserve and works 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 $332k. As mentioned, the Center was closed in March 2022 to comply with shelter‐in‐place orders and reopened in July 2021 on a limited basis. The Center was awarded a Grant of $602,160 in FY 21/22 as part of the COVID relief funds for districts. Operating Revenues were only $382k, recording a decline of 48% from pre‐pandemic levels.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Management’s Discussion and Analysis
19 General Fund Budgetary Highlights
The fund financial statements compare the Budget to actual for major governmental funds. 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 $9.9 million in revenues. The amended Budget was $10.7 million, and actual revenues of $11.2 million ended the fiscal year above budget estimates by $539k. The General Fund was the most impacted by the 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 and sales tax recovered in FY 20/21 and continued the strong results into FY 21/22, recording its best year. Reimbursements also recorded a $629k increase due to the increase in reimbursements to the General Fund from the Enterprise Funds due to the Cost Allocation True done at the end of the fiscal year based on actual staff time hours.

Expenditures were held below the final amended Budget of $10.6 million by $283k. Expenditure across many categories recorded savings except Public Safety, $72k, and Public Works‐ Engineering, $60k. The Department sent three police recruits to the academy in January 2022. While the goal is to fill vacancies and eliminate the need to backfill positions, the normal duration for the academy and field training is approximately six months, requiring overtime to backfill until the recruits are ready to serve as sworn officers.

The Non‐ Departmental category records expenditures not associated with a specific department of the City.

These include Retiree Medical costs, Insurance costs, Utilities, and OPEB funding, to name a few. This revenue category ended the year under Budget by $260k. The expenses of CIRA liability and property premium payments were much lower than anticipated.

Additionally, a Budget of $150k was set aside to be contributed to the Section 115 Trust to absorb future pension cost increases.

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 ($1.98 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. Restricted Funds of $3.5 million from the 2021 Lease Revenue Bonds were to be used to rehabilitate and remediate certain properties in the City. These funds were subsequently returned.

The General Fund ended the year with a fund balance (of non‐spendable, committed, and unassigned amounts) of $5.01 million, representing an increase of $908k for the year.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2022
Management’s Discussion and Analysis
20 Capital Assets
The City's investment in capital assets for its Governmental and Business‐type Activities as of June 30, 2022, amounts to $95.4 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:
2022 2021 2022 2021 2022 2021
Land 12,952,262 $       12,952,262 $       785,079 $            785,079 $            13,737,341 $       13,737,341 $ Construction in progress 214,292                2,536,221            3,623,852            933,150                3,838,144            3,469,371 Buildings 1,130,844            1,281,003            19,725,930          20,441,570          20,856,774          21,722,573 Machinery, equipment and vehicle            1,308,114 1,420,794            2,008,476            1,423,349            3,429,270            2,731,463 Infrastructure 25,687,648          23,608,286          27,860,326          28,653,610          53,547,974          52,261,896 Land improvements ‐                             ‐                             ‐                             49,712                  ‐                             49,712 Total 41,405,840 $       41,685,886 $       54,003,663 $       52,286,470 $       95,409,503 $       93,972,356 $ Governmental Activities Totals Business‐type Activities Capital assets increased by $1.4 million (net of annual depreciation costs)—most notably,  Infrastructure Improvements of $3.8 million were capitalized. These were Street Resurfacing Project and Maple Street Improvements. Disposal of assets totaled $393k from the wastewater fund. Citywide total assets placed in Service equaled $4.3 million, offset by $3.3 million in Depreciation. More detail about 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, 2022, the total City Debt outstanding was $18 million. Overall, governmental debt increased by $11.4 million. The City issued Lease Revenue Bonds in October, 2021. Of the proceeds, $3.5 million was to be used to rehabilitate and remediate certain properties in the City. The remaining proceeds of $7.5 million were used to pay down a portion of the outstanding Unfunded Liability (UAL) projected by CALPERS.

Business‐type debt reduced by $497k to $5.9 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

BASIC FINANCIAL STATEMENTS
21 This page intentionally left blank.
22 City of Fort Bragg, California
Statement of Net Position
June 30, 2022
Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments $ 13,959,639 8,679,436 $ 22,639,075 $ Restricted cash and investments 108,064 3,500,000 3,608,064 Receivables:

Accounts 1,116,826 2,329,198 3,446,024
Loans/Notes receivable - 2,513,350 2,513,350
Inventory 97,615 - 97,615
Prepaid items - 11,001 11,001
Total current assets 15,282,144 17,032,985 32,315,129
Capital assets:

Nondepreciable 13,166,554 4,408,931 17,575,485
Depreciable 49,711,494 28,239,286 77,950,780
Total noncurrent assets 54,120,425 41,405,840 95,526,265 Total assets 69,402,569 58,438,825 127,841,394

DEFERRED OUTFLOWS OF RESOURCES
Pension plan 385,633 9,466,238 9,851,871
OPEB, deferred outflow - 508,914 508,914
Deferred loss on debt refunding 60,070 - 60,070
Total deferred outflows of resources 445,703 9,975,152 10,420,855 Total assets and deferred outflows $ 69,848,272 68,413,977 $ 138,262,249 $

LIABILITIES
Accounts payable and accrued liabilities 696,612 877,976 1,574,588 Interest payable 16,386 79,792 96,178
Unearned revenue 13,844 - 13,844
Deposits payable 165,362 123,935 289,297
Compensated absences - current portion 8,187 49,910 58,097 Due within one year 465,889 113,321 579,210
Total current liabilities 1,366,280 1,244,934 2,611,214 Long-term liabilities:

Compensated absences 449,192 96,410 545,602
Landfill post-closure - 220,270 220,270
Due after one year 5,349,223 11,313,751 16,662,974
Net OPEB obligation 2,314,096 - 2,314,096
Net pension liability 267,987 6,080,743 6,348,730
Total noncurrent liabilities 5,713,620 20,378,052 26,091,672 Total liabilities 7,079,900 21,622,986 28,702,886

DEFERRED INFLOWS OF RESOURCES
Pension plan 997,206 4,753,528 5,750,734
OPEB - 563,434 563,434
Total deferred inflows of resources 997,206 5,316,962 6,314,168 Total liabilities and deferred inflows 8,077,106 26,939,948 35,017,054

NET POSITION
Net investment in capital assets 48,678,202 30,092,089 78,770,291 Restricted for:

Gas Tax - 51,395 51,395
State and Federal Grants - 87,932 87,932
Special Sales Tax - 2,026,740 2,026,740
Asset Forfeiture - 411,937 411,937
Debt Service 108,064 3,500,000 3,608,064
Unrestricted 12,984,900 5,303,936 18,288,836
Total net position 61,771,166 41,474,029 103,245,195
Total liabilities, deferred inflows and net position $ 69,848,272 68,413,977 $ 138,262,249 $ 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, 2022
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary government:

Governmental activities:

General government $ 1,583,520 4,514,625 $ 891,072 $ 75,400 $ Public safety 318,837 46,161 - 4,903,019
Public works 2,005,830 217,154 111,154 3,551,490
Community development 50 825,072 2,813,143 -
Marketing and promotions - 226,874 - -
Interest and fiscal charges - 438,129 - -
Total governmental activities 14,459,209 3,908,237 3,967,530 186,554 Business-type activities:

Water 3,032,950 2,676,522 - 645,986
Wastewater 3,583,722 3,942,009 - -
CV Starr Center 982,537 2,145,402 - -
Total business-type activities 8,763,933 7,599,209 - 645,986 Total primary government $ 11,507,446 23,223,142 $ 3,967,530 $ 832,540 $ General revenues:

Taxes:

Property taxes, levied for general purposes
Sales and use taxes
Transient occupancy tax, levied for general purposes
Franchise taxes
Other taxes
Unrestricted investment earnings
Other general revenues
OPEB credit
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
$ - (1,964,633) $ (1,964,633) $
- (4,538,021) (4,538,021)
- (1,217,352) (1,217,352)
- 1,988,121 1,988,121
- (226,874) (226,874)
- (438,129) (438,129)
- (6,396,888) (6,396,888)
1,002,414 - 1,002,414
(358,287) - (358,287)
(1,162,865) - (1,162,865)
(518,738) - (518,738)
(518,738) (6,396,888) (6,915,626)
1,214,292 268,596 1,482,888
3,426,543 1,211,340 4,637,883
3,444,990 - 3,444,990
653,579 - 653,579
198,061 - 198,061
104,244 (7,606) 96,638
50,000 27,644 77,644
- 359,611 359,611
1,939,278 (1,939,278) -
3,573,458 7,377,836 10,951,294
3,054,720 980,948 4,035,668
58,716,446 40,493,081 99,209,527
$ 61,771,166 41,474,029 $ 103,245,195 $
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 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.

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
27 City of Fort Bragg, California
Balance Sheet
Governmental Funds
June 30, 2022
CDBG Housing
General Program Income Successor Agency
Fund Special Revenue Special Revenue
ASSETS
Cash and investments $ 6,088 3,687,822 $ 184,418 $
Restricted cash and investments 3,500,000 - -
Receivables:

Taxes 1,670 - -
Intergovernmental - - -
Loans/Notes receivable 985 1,997,333 313,625
Other receivable 1,052,095 - -
Due from other funds 894,991 - -
Prepaid items 11,001 - -
Total assets $ 2,003,421 9,148,564 $ 498,043 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 432,394 $ - $ - $ Due to other funds - - -
Deposits payable 123,935 - -
Total liabilities - 556,329 -
Deferred inflows of resources:

Unavailable revenue - 1,958,611 313,625
Total deferred inflows of resources: 1,958,611 - 313,625 Total Liabilities and deferred inflows 1,958,611 556,329 313,625 Fund balances:

Nonspendable
Prepaids and inventory 11,001 - -
Loans/Notes receivable 985 - -
Restricted 3,500,000 - -
Committed:

Operating reserve 1,989,419 - -
Recession reserve 489,929 - -
Litigation reserve 200,000 - -
Assigned 44,810 - 184,418
Unassigned (deficit) 2,400,901 - -
Total fund balances 44,810 8,592,235 184,418
Total liabilities, deferred inflows and fund balances $ 2,003,421 9,148,564 $ 498,043 $ 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
$ - 1,806,524 $ 2,206,452 $ 7,891,304 $
- - - 3,500,000
- - - 1,670
220,216 - 1,051,477 1,271,693
- - 201,407 2,513,350
- - 3,740 1,055,835
- - - 894,991
- - - 11,001
$ - 2,026,740 $ 3,463,076 $ 17,139,844 $
$ - - $ 399,144 $ 831,538 $
26,132 - 868,859 894,991
- - - 123,935
26,132 - 1,268,003 1,850,464
- - 201,407 2,473,643
- - 201,407 2,473,643
26,132 - 1,469,410 4,324,107
- - - 11,001
- - - 985
- 2,026,740 551,264 6,078,004
- - - 1,989,419
- - - 489,929
- - - 200,000
- - 1,560,531 1,789,759
(26,132) (118,129) - 2,256,640
(26,132) 2,026,740 1,993,666 12,815,737
$ - 2,026,740 $ 3,463,076 $ 17,139,844 $
Major Funds
29 City of Fort Bragg, California
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2022
Total fund balances - total governmental funds $ 12,815,737 39,998,384
Compensated absences (499,102) $
Landfill post-closure (248,591)
CalPERS side fund (85,000)
Net OPEB obligation (2,314,096)
Net pension liability (6,080,743) (20,541,283)
2,473,643
(79,792)
Deferred outflows, Pension 9,466,238
Deferred inflows, Pension (4,753,528)
Deferred outflows, OPEB 508,914
Deferred inflows, OPEB (563,434) 4,658,190
Current assets 788,132
Noncurrent assets 1,407,456
Accounts payable and accrued liabilities (46,438) 2,149,150 Net Position of governmental activities $ 41,474,029
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, 2022
Governmental Internal
Funds Changes Services Statement of
Balance Sheet Reclassifications in GAAP Balances Net Position ASSETS
Current assets:

Cash and investments $ - 7,891,304 $ - $ 788,132 $ 8,679,436 $ Restricted cash and investments - 3,500,000 - - 3,500,000 Receivables:

Taxes - 1,670 - - 1,670
Intergovernmental - 1,271,693 - - 1,271,693
Loans/Notes receivable - 2,513,350 - - 2,513,350
Other receivable - 1,055,835 - - 1,055,835
Due from other funds 894,991 - (894,991) - -
Prepaid items - 11,001 - - 11,001
Total current assets 17,139,844 - (894,991) 788,132 17,032,985 Noncurrent assets:

Capital assets, net - - 39,998,384 1,407,456 41,405,840 Total noncurrent assets - - 39,998,384 1,407,456 41,405,840

DEFERRED OUTFLOWS OF RESOURCES
Pension plan - - 9,466,238 - 9,466,238
OPEB - - 508,914 - 508,914
Deferred loss on refunding - - - - - Total assets and deferred outflows of resources $ 17,139,844 $ 49,973,536 (894,991) $ 2,195,588 $ 68,413,977 $

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities $ - 831,538 $ - $ 46,438 $ 877,976 $ Interest payable - - 79,792 - 79,792
Due to other funds 894,991 - (894,991) - -
Deposits payable - 123,935 - - 123,935
Compensated absences - current portion - - 49,910 - 49,910 Due within one year - - 113,321 - 113,321 Total current liabilities 1,850,464 243,023 (894,991) 46,438 1,244,934 Noncurrent liabilities:

Long-term liabilities:

Compensated absences - - 449,192 - 449,192
Due after one year - - 11,313,751 - 11,313,751
Landfill post-closure - - 220,270 - 220,270
Net OPEB obligation - - 2,314,096 - 2,314,096
Net pension liability - - 6,080,743 - 6,080,743
Total noncurrent liabilities - - 20,378,052 - 20,378,052 Total liabilities 1,850,464 20,621,075 (894,991) 46,438 21,622,986

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 2,473,643 - (2,473,643) -
Pension Plan - - 4,753,528 - 4,753,528
OPEB, deferred inflow - - 563,434 - 563,434
Total liabities and deferred inflows: 4,324,107 23,464,394 (894,991) 46,438 26,939,948

FUND BALANCES/NET POSITION
Fund balances:

Nonspendable 11,986 - (11,986) - -
Restricted 6,078,004 - (6,078,004) - -
Committed 2,679,348 - (2,679,348) - -
Assigned 1,789,759 - (1,789,759) - -
Unassigned (deficit) 2,256,640 - (2,256,640) - - - Net position: - Net investment in capital assets - - 28,684,633 1,407,456 30,092,089 Restricted - - 6,078,004 - 6,078,004
Unrestricted 12,815,737 - 741,694 (8,253,495) 5,303,936 Total fund balances/net position - 12,815,737 26,509,142 2,149,150 41,474,029 Total liabilities, deferred inflows and net position $ 17,139,844 $ 49,973,536 (894,991) $ 2,195,588 $ 68,413,977 $ 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, 2022
CDBG Housing
General Program Income Successor Agency
Fund Special Revenue Special Revenue
REVENUES:

Taxes and assessments $ - 7,662,144 $ - $
Licenses and permits - 86,132 -
Fines and forfeitures - 97,331 -
Intergovernmental - 187,815 -
Use of money and property 125,509 (184,172) 1,291
Charges for services - 65,418 -
Reimbursements - 3,278,393 -
Other revenues - 22,540 -
Total revenues 125,509 11,215,601 1,291
EXPENDITURES:

Current:

General government 3,248,798 - -
Public safety 4,325,464 - -
Public works 1,372,529 - -
Community development 365,417 15,158 -
Marketing and promotions 226,874 - -
Cost allocations 789,399 - -
Capital outlay - - -
Debt service:

Bond issuance costs 358,337 - -
Total expenditures 15,158 10,686,818 -

REVENUES OVER (UNDER)
EXPENDITURES 110,351 528,783 1,291
OTHER FINANCING SOURCES (USES):

Proceeds from bonds issued 11,440,000 - -
Discount on bonds issued (41,249) - -
Payment to CalPERS (7,540,414) - -
Proceeds from sales of assets 15,700 - -
Transfers in 56,774 - -
Transfers out (51,574) (90,797) -
Total other financing sources (uses) (90,797) 3,879,237 - Net change in fund balances 19,554 4,408,020 1,291
FUND BALANCES (DEFICITS):

Beginning of year 4,184,215 25,256 183,127
End of year $ 44,810 8,592,235 $ 184,418 $
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
$ - 1,211,382 $ 63,939 $ 8,937,465 $
- - - 86,132
- - 49,040 146,371
- - 4,299,613 4,487,428
- 14,692 8,186 (34,494)
- - - 65,418
- - - 3,278,393
- - - 22,540
- 1,226,074 4,420,778 16,989,253
- - 70,178 3,318,976
- - 181,610 4,507,074
- 216,532 377,315 1,966,376
- - 753,760 1,134,335
- - - 226,874
- - - 789,399
- - 1,504,213 1,504,213
- - - 358,337
- 216,532 2,887,076 13,805,584
- 1,009,542 1,533,702 3,183,669
- - - 11,440,000
- - - (41,249)
- - - (7,540,414)
- - - 15,700
- - 1,731,186 1,787,960
- (1,479,148) (2,105,719) (3,727,238)
- (1,479,148) (374,533) 1,934,759
- (469,606) 1,159,169 5,118,428
(26,132) 834,497 2,496,346 7,697,309
$ (26,132) 2,026,740 $ 1,993,666 $ 12,815,737 $
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, 2022
Compensated Capital
Absences/ Asset GovernmentFund Based Debt Internal (Additions)/ Cost wide Functions/Programs Totals Service Service Depreciation Retirements Allocation Pension plan Totals Governmental activities:

General government $ (70,099) 3,318,976 $ 124,603 $ 175,616 $ (207,296) $ 239,777 $ 933,048 $ 4,514,625 $ Public safety - 4,507,074 - 70,333 - 325,612 - 4,903,019 Public works (302,552) 1,966,376 - 1,745,606 - 142,060 - 3,551,490 Community development (391,213) 1,134,335 - - - 81,950 - 825,072 Marketing and promotions - 226,874 - - - - - 226,874
Cost allocations - 789,399 - - - (789,399) - -
Capital outlay 1,504,213 - - - (1,504,213) - - -
Debt service/Interest 358,337 79,792 - - - - - 438,129
Total governmental activities $ (684,072) 13,805,584 $ 124,603 $ 1,991,555 $ (1,711,509) $ - $ 933,048 $ 14,459,209 $ 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, 2022
Net change in fund balances - total governmental funds $ 5,118,428 Capital asset purchases capitalized $ 1,711,509
Proceeds from sale of capital assets (15,700)
Depreciation expense (1,991,555) (295,746)
30,571
CalPERS side fund 302,552
Proceeds from bonds issued (11,440,000)
Discount on bonds issued 41,249
Payment to CalPERS 7,540,414 (3,858,337)
Change in interest payable (79,792)
Landfill closure liability 391,213
Change in compensated absences 70,099 381,520
Net OPEB obligation 359,611
Net Pension obligation (933,048) (573,437)
(124,603)
Change in Net Position of governmental activities $ 980,948 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 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.

The issuance of long-term debt (e.g., bonds) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. This amount is the net effect of these differences in the treatment of long-term debt and related items. 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, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Taxes and assessments 6,570,621 $ 7,170,621 $ 7,662,144 $ 491,523 $ Licenses and permits 93,702 93,702 86,132 (7,570)
Fines and forfeitures 48,950 48,950 97,331 48,381
Intergovernmental 524,213 617,586 187,815 (429,771)
Use of money and property 21,220 21,220 (184,172) (205,392) Charges for services 57,800 57,800 65,418 7,618
Reimbursements 2,637,450 2,648,650 3,278,393 629,743
Other revenues 18,500 18,500 22,540 4,040
Total revenues 10,677,029 9,972,456 11,215,601 538,572
EXPENDITURES:

Current:

General government:

City Council 176,632 292,807 214,277 78,530
Administrative services 956,385 1,222,410 1,225,661 (3,251) Finance 606,667 606,667 536,977 69,690
Other - unclassified 1,387,688 1,532,308 1,271,883 260,425 Public safety:

Police Department 3,751,472 3,794,972 3,891,041 (96,069) Fire Department 447,758 447,758 434,423 13,335
Public works:

Administration and engineering 558,107 619,107 679,782 (60,675) Parks and facilities 39,800 39,800 36,479 3,321
Street maintenance 117,000 133,200 124,497 8,703
Storm drains 16,000 16,000 12,680 3,320
Corporation yard 444,285 444,285 494,218 (49,933)
Traffic and safety 73,500 73,500 24,873 48,627
Community development 386,520 411,485 365,417 46,068
Marketing and promotions 230,000 230,000 226,874 3,126
Cost allocations 686,131 686,131 789,399 (103,268)
Debt service:

Principal - 37,834 - 37,834
Interest and fiscal charges - 130 358,337 (358,207)
Total expenditures 10,588,394 9,877,945 10,686,818 (98,424)

REVENUES OVER (UNDER)
EXPENDITURES 88,635 94,511 528,783 440,148
OTHER FINANCING SOURCES (USES):

Proceeds from bonds issued - - 11,440,000
Discount on bonds issued - - (41,249)
Payment to CalPERS - - (7,540,414)
Proceeds from sales of assets 5,000 5,000 15,700 10,700 Transfers in 230,284 230,284 56,774 (173,510)
Transfers out (268,248) (268,248) (51,574) 216,674
Total other financing sources (uses) (32,964) (32,964) 3,879,237 53,864 Net change in fund balances 55,671 61,547 4,408,020 494,012 FUND BALANCES (DEFICITS):

Beginning of year 4,184,215 4,184,215 4,184,215 -
End of year $ 4,239,886 4,245,762 $ 8,592,235 $ 494,012 $ 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) $ - - $ - $ - $ - $ - $ - $ - $
- - - - - - - -
- - - - - - - -
- - - - - - - -
94,500 94,500 125,509 31,009 5,345 5,345 1,291 (4,054)
- - - - - - - -
- - - - - - - -
- - - - - - - -
94,500 94,500 125,509 31,009 5,345 5,345 1,291 (4,054)
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - 15,158 (15,158) - 2,500 - 2,500
- - - - - - - -
- - - - - - -
- - - - - - - -
- - - - - - - -
- - 15,158 (15,158) - 2,500 - 2,500
94,500 94,500 110,351 15,851 5,345 2,845 1,291 (1,554)
- - - - - - - -
- - - - - - - -
(72,000) (72,000) (90,797) (18,797) - - - -
(72,000) (72,000) (90,797) (18,797) - - - -
22,500 22,500 19,554 (2,946) 5,345 2,845 1,291 (1,554)
25,256 25,256 25,256 - 183,127 183,127 183,127 -
$ 47,756 47,756 $ 44,810 $ (2,946) $ 188,472 $ 185,972 $ 184,418 $ (1,554) $ (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, 2022
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Taxes and assessments 948,704 $ 948,704 $ 1,211,382 $ 262,678 $ Licenses and permits - - - -
Fines and forfeitures - - - -
Intergovernmental - - - -
Use of money and property 19,500 19,500 14,692 (4,808)
Charges for services - - - -
Reimbursements - - - -
Other revenues - - - -
Total revenues 968,204 968,204 1,226,074 257,870
EXPENDITURES:

Current:

General government:

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

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

Administration and engineering - 11,200 216,532 (205,332) 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 11,200 - 216,532 (205,332)

REVENUES OVER (UNDER)
EXPENDITURES 957,004 968,204 1,009,542 52,538
OTHER FINANCING SOURCES (USES):

Transfer to Successor Agency - - - -
Transfers in - - - -
Transfers out (2,297,441) (2,297,441) (1,479,148) 818,293 Total other financing sources (uses) (2,297,441) (2,297,441) (1,479,148) 818,293 Net change in fund balances (1,340,437) (1,329,237) (469,606) 870,831 FUND BALANCES:

Beginning of year 2,496,346 2,496,346 2,496,346 -
End of year $ 1,155,909 1,167,109 $ 2,026,740 $ 870,831 $ (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, 2022
Governmental
Activities
Water Sewer CV Starr Center Internal
Fund Fund Fund Totals Service Funds
ASSETS
Current assets:

Cash and investments 7,721,343 $ 3,657,024 $ 2,581,272 $ 13,959,639 $ 788,132 $ Restricted cash and investments 108,064 - - 108,064
Receivables:

Accounts 384,909 452,722 279,195 1,116,826 -
Inventory and prepaids 84,436 12,183 996 97,615 -
Total current assets 4,121,929 8,298,752 2,861,463 15,282,144 788,132 Noncurrent assets:

Capital assets, net 9,684,687 25,673,229 18,762,509 54,120,425 1,407 ,456 Total noncurrent assets 25,673,229 9,684,687 18,762,509 54,120,425 1,407,456 Total Assets 29,795,158 17,983,439 21,623,972 69,402,569 2,195,588

DEFERRED OUTFLOWS OF RESOURCES
Pension plan - 385,633 - 385,633 -
Deferred loss on debt refunding 60,070 - - 60,070 -
Total assets and defered outflows of resources $ 30,180,791 18,043,509 $ 21,623,972 $ 69,848,272 $ 2,195,588 $

LIABILITIES
Current liabilities:

Accounts payable 107,760 $ 31,179 $ 522,640 $ 661,579 $ 39,536 $ Accrued payroll - 35,033 - 35,033 6,902
Interest payable 16,386 - - 16,386 -
Unearned revenue - 6,466 7,378 13,844 -
Deposits payable 146,316 250 18,796 165,362 -
Compensated absences - current portion 2,666 3,999 1,522 8,187 - Due within one year 372,889 93,000 - 465,889 -
Total current liabilities 169,927 646,017 550,336 1,366,280 46,438 Noncurrent liabilities:

Compensated absences 23,995 35,993 36,422 96,410 -
Due after one year 702,223 4,647,000 - 5,349,223 -
Net pension liability - 267,987 - 267,987 -
Total noncurrent liabilities 4,950,980 726,218 36,422 5,713,620 - Total liabilities 5,120,907 1,372,235 586,758 7,079,900 46,438

DEFERRED INFLOWS OF RESOURCES
Pension Plan - 997,206 - 997,206 -
Total deferred inflows of resources 997,206 - - 997,206 -

NET POSITION
Net Position:

Net investment in capital assets 8,982,464 20,933,229 18,762,509 48,678,202 1,407,456 Restricted for debt service 108,064 - - 108,064 -
Unrestricted 7,580,746 3,129,449 2,274,705 12,984,900 741,694 Total net position 24,062,678 16,671,274 21,037,214 61,771,166 2,149,150 Total liabilities, deferred inflows and net position $ 30,180,791 18,043,509 $ 21,623,972 $ 69,848,272 $ 2,195,588 $ 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, 2022
Governmental
Activities
Water Sewer CV Starr Center Internal
Fund Fund Fund Totals Service Funds
OPERATING REVENUES:

Charges for service 3,019,487 $ 3,484,719 $ - $ 6,504,206 $ - $ Other operating revenue 13,463 99,003 982,537 1,095,003 12,543 Interdepartmental charges - - - - 1,040,724
Total operating revenues 3,583,722 3,032,950 982,537 7,599,209 1,053,267 OPERATING EXPENSES:

Personnel services 1,039,333 684,922 766,339 2,490,594 360,035 Administration 683,736 1,225,605 - 1,909,341
Repairs and maintenance 54,839 118,562 5,451 178,852 69,553 Materials and supplies 201,326 292,573 - 493,899 513,436 Utilities 147,423 222,967 321,693 692,083 -
Contractual services 93,135 360,279 19,900 473,314 829
Insurance 31,351 49,798 60,096 141,245 -
Other operating 5,192 59,838 267,253 332,283 -
Depreciation 364,752 829,815 704,670 1,899,237 85,331
Total operating expenses 3,844,359 2,621,087 2,145,402 8,610,848 1,029,184 OPERATING INCOME (260,637) 411,863 (1,162,865) (1,011,639) 24,083 NONOPERATING REVENUES (EXPENSES):

Property taxes - - 268,596 268,596 -
Sales taxes - - 1,211,340 1,211,340 -
Intergovernmental revenue 645,986 - - 645,986
Other nonoperating revenues - 50,000 - 50,000 -
Interest revenue 56,690 32,543 15,011 104,244 -
Interest expense (55,435) (97,650) - (153,085) -
Total non-operating revenues, net (15,107) 647,241 1,494,947 2,127,081 -

NET INCOME BEFORE
TRANSFERS (275,744) 1,059,104 332,082 1,115,442 24,083
Transfers in 2,021,979 - - 2,021,979 -
Transfers out - (82,701) - (82,701) -
Total transfers (82,701) 2,021,979 - 1,939,278 -
CHANGE IN NET POSITION (358,445) 3,081,083 332,082 3,054,720 24,083 NET POSITION:

Beginning of year 13,590,191 24,421,123 20,705,132 58,716,446 2,125,067 End of year 16,671,274 $ 24,062,678 $ 21,037,214 $ 61,771,166 $ 2,149,150 $ 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, 2022
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 3,07 $ 3,627,739 3,910 $ 989,915 $ 7,691,564 $ - $ Cash received from interfund services provided - - - - 1,053,267 Cash payments to suppliers for goods and services (1,224,97 (2,383,888) 5) (514,572) (4,123,435) (595,486) Cash payments to employees for services (1,036,650) (651,377) (766,339) (2,454,366) (356,171) Net cash provided by operating activities 592,474 812,285 (290,996) 1,113,763 101,610

CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:

Transfers received 2,021,979 - - 2,021,979 -
Transfers paid - (82,701) - (82,701) -
Taxes received - - 1,479,936 1,479,936 -
Grants received 645,986 50,000 - 695,986 -
Loans received - - - -
Net cash used by noncapital financing activities (32,701) 2,667,965 1,479,936 4,115,200 -

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Acquisition and construction of capital assets (2,917,889) (564,250) (251,053) (3,733,192) (234,017) Principal paid on long term debt (387,743) (87,000) - (474,743) - Interest paid on long term debt (55,435) (97,650) - (153,085) - Net cash (used) by capital and related financing activities (748,900) (3,361,067) (251,053) (4,361,020) (234,017) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income received 56 32 ,690 15 ,543 104 ,011 - ,244 Net cash provided by investing activities 32,543 56,690 15,011 104,244 - Net increase (decrease) in cash and cash equivalents (156,584) 175,873 952,898 972,187 (132,407) CASH AND CASH EQUIVALENTS:

Beginning of year 7,653,534 3,813,608 1,628,374 13,095,516 920,539 End of year 7,829,407 $ 3,657,024 $ 2,581,272 $ 14,067,703 $ 788,132 $ Presentation in Statement of Financial Position:

Cash and investments 7,721,343 $ 3,657,024 $ 2,581,272 $ 13,959,639 $ 788,132 $ Restricted cash and investments 108,064 - - 108,064 -
Total Cash and investments 7,829,407 $ 3,657,024 $ 2,581,272 $ 14,067,703 $ 788,132 $ Reconciliation of income from operations to net
cash provided by operating activities:

Operating income 411,863 $ (260,637) $ (1,162,865) $ (1,011,639) $ 24,083 $ Adjustments to reconcile operating income
to net cash provided by operating activities:

Depreciation 364,752 829,815 704,670 1,899,237 85,331
Pension - 20,047 - 20,047 -
(Increase) decrease in current assets:

Accounts receivable 44,248 44,017 (6,576) 81,689 -
Inventory and prepaids (33,244) (7,212) - (40,456) -
Increase (decrease) in liabilities: .

Accounts payable 25,271 (47,054) 166,397 144,614 (11,668) Accrued liabilities - 9,349 - 9,349 3,864
Deposits payable (3,288) - - (3,288) -
Compensated absences 2,683 4,149 - 6,832 -
Net cash provided by operating activities $ 592,474 812,285 $ (290,996) $ 1,113,763 $ 101,610 $ There were no noncash investing, capital, or financing activities affecting recognized assets and liabilities for the year ended June 30, 2022.

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, 2022
Former Fort Bragg
Redevelopment
Agency

ASSETS AND DEFERRED OUTFLOWS
Current assets:

Cash and investments $ 153,658
Total current assets 153,658
Total assets 153,658
Deferred outflows of resources
Deferred loss on debt refunding 69,973
Total deferred outflows of resources 69,973
Total assets and deferred outflows of resources $ 223,631

LIABILITIES, DEFERRED INFLOWS AND NET POSITION
Current liabilities:

Accounts payable and accrued liabilities $ -
Interest payable 36,758
Due within one year 168,380
Total current liabilities 205,138
Long-term liabilities:

Due after one year 2,822,558
Total long-term liabilities 2,822,558
Deferred inflows of resources
Unavailable revenue 275,746
Total liabilities and deferred inflows of resources 3,303,442 Net Position (Deficit) (3,079,811)
Total liabilities and net position $ 223,631
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, 2022
Former Fort Bragg
Redevelopment
Agency
ADDITIONS:

Property taxes $ 383,125
Total operating revenues 383,125
DEDUCTIONS:

Community development 126,439
Interest and trustee fees 98,622
Total operating expenses 225,061
CHANGE IN FIDUCIARY NET ASSETS 158,064
NET ASSETS (DEFICIT):

Beginning of year (3,237,875)
End of year $ (3,079,811)
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, 2022
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, 2022
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, 2022
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, 2022
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, 2022
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, 2022
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, 2022
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 fund 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, 2022
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, 2022. 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, 2022
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, 2022, 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, 2022
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 assets 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 assets 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, 2022
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, 2022
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
Lease Liabilities represent the City’s obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments expected to be made during the lease term. The present value of lease payments is discounted based on a borrowing rate determined by the City.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2022
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, 2022, are summarized below.

Fund Amount
WASTEWATER 6,265 $
WATER 2,562,826
GENERAL FUND 50,000
IT 24,000
Streets                  88,500
CDBG- Grants            2,986,935
DDA 99,573
CV STARR                  15,996
$     5,834,096
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, 2022
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, 2022
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 2021/20 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, 2022
Measurement Date     June 30, 2022
Measurement Period     July 1, 2021 to June 30, 2022
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2022
63 2.  CASH AND INVESTMENTS
At  June 30, 2022,  the City’s pooled cash and investments, classified by maturity, consisted of  the  following stated at fair value:
<1 1 to 3 3 to 5 Deposits Fair Value
Cash equivalents and investments pooled
Pooled cash, at fair value
Cash in bank  ‐ $                      ‐ $                   ‐ $                      7,676,271 $         7,676,271 Petty cash ‐                         ‐                         ‐                         1,290                    1,290 Total pooled items ‐                         ‐                         ‐                         7,677,561            7,677,561 Pooled investments, at fair value
Interest obligations
Par Rate
$       0.57% ‐ 1.00% Federal Agency Securities ‐ 1,000,000                         ‐                         923,790            ‐                             923,790 $       0.7% ‐ 3.20% Certificates of Deposits 1,988,431 6,937,000         2,182,758         2,658,616         ‐                             6,829,805

0.850% ‐ 1.750% Corporate notes ‐ 1,540,000                         ‐                         ‐                         ‐                             ‐ Money Market Funds ‐                         ‐                         ‐                         5,732                    5,732 State of California Local Agency Investment Fund ‐                         ‐                         ‐                         10,963,909          10,963,909 Total pooled investments ‐ interest obligations 1,988,431         2,182,758         3,582,406         10,969,641          18,723,236 Total cash equivalents and investments pooled 1,988,431 $      2,182,758 $      3,582,406 $      18,647,202 $       26,400,797 $ Amounts reported in:

Governmental activities  (unrestricted) 8,679,436 $
Governmental activities (restricted) 3,500,000
Business‐type activities (unrestricted) 13,959,639
Business‐type activities (restricted) 108,064
Fiduciary activities 153,658
Total  26,400,797 $
Maturities (in years)
Weighted Average
Investment Type Fair Value Maturity (Years)
Federal agency securities 923,790 $            3.77
Certificates of Deposit 6,829,805            2.55
Money market funds 5,732                   ‐
LAIF 10,963,909         ‐
Total fair value 18,723,236 $
Portfolio weighted average maturity 2.69
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2022
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, 2022, 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, 2022
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, 2022, 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, 2022, the carrying amount of the City’s cash deposits (including fiduciary funds) was $4,230,302 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, 2022, 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 $18,723,236.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2022
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, 2022 was $35,761,173,309 of which the City had a balance of $10,963,909.  LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2022 has a portfolio with market valuation including accrued interest of $231,867,874,452. 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, 2022:

These amounts resulted in the following concentrations in receivables:

Other Governments  37%   Individuals/Business  63%

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

Receivables
Governmental Activities
Taxes  1,670 $
Intergovernmental 1,271,693
Other  1,055,835
$                 2,329,198
Business‐type activities
Accounts Receivable 1,116,826 $
$                 1,116,826
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2022
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, 2022, consisted of the following:

Beginning Ending
June 30, 2021 Additions  Deletions  June 30, 2022
CDBG Revolving Loans 1,326,427 $      88,567 $        (120,547) $  1,294,447 $ Mendocino Coast Hospitality Center Loan             ‐ 904,293                  ‐                904,293 Rural Community Housing Development Corporation Loans             6,750 306,875              ‐                313,625 Employee Loans                 ‐ 2,371                  (1,386)          985 Total loans/notes receivable 2,539,966 $      95,317 $        (121,933) $  2,513,350 $ The following are descriptions of the loans and notes receivable outstanding as of June 30, 2022:

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, 2022
68 5.  CAPITAL ASSETS
Governmental capital asset activity for the year ended June 30, 2022, was as follows:

Balance Transfers/ Balance
June 30, 2021 Additions Deletions Adjustments June 30, 2022 Governmental activities:

Nondepreciable assets:

Land 12,952,262 $   ‐ $                ‐ $          ‐ $                12,952,262 $ Construction in progress 2,536,221         180,084          ‐              (2,502,013)      214,292 Total nondepreciable assets       180,084 15,488,483          ‐              (2,502,013)      13,166,554 Depreciable assets:

Buildings 4,675,798         ‐                   ‐              ‐                   4,675,798 Machinery, equipment and vehicles 2,789,838         221,526          (13,399)      ‐                   2,997,965 Infrastructure 34,413,370       1,323,298       ‐              2,502,013       38,238,681 Total depreciable assets       1,544,824 41,879,006       (13,399)      2,502,013       45,912,444 Total       1,724,908 57,367,489       (13,399)      ‐                   59,078,998 Accumulated depreciation:

Buildings (3,394,795)        (150,159)         ‐              ‐                   (3,544,954) Machinery, equipment and vehicles (1,481,724)        (95,447)           ‐              ‐                   (1,577,171) Infrastructure (10,805,084)     (1,745,949)      ‐              ‐                   (12,551,033) Total accumulated depreciation     (1,991,555) (15,681,603)      ‐              ‐                   (17,673,158) Net depreciable assets       (446,731) 26,197,403         (13,399)      2,502,013       28,239,286 Total net capital assets $   (266,647) 41,685,886 $      (13,399) $  ‐ $                41,405,840 $ Depreciation expense for capital assets was charged to functions as follows:

General government 175,616 $
Public safety 70,333
Public works 1,745,606
$            1,991,555
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2022
69 5.  CAPITAL ASSETS, Continued
Business‐type capital asset activity for the year ended June 30, 2022, was as follows:

Balance Balance
June 30, 2021 Additions Deletions June 30, 2022
Business‐type activities:

Nondepreciable assets:

Land 785,079 $            ‐ $                     ‐ $                     785,079 $ Construction in progress 933,150               2,690,702            ‐                        3,623,852 Total nondepreciable assets            2,690,702 1,718,229            ‐                        4,408,931 Depreciable assets:

Buildings 29,299,821          116,762               ‐                        29,416,583 Machinery, equipment and vehicles 6,321,372            770,684               (362,396)              6,729,660 Infrastructure 39,278,577          187,574               ‐                        39,466,151 Land improvements 542,303               542,303
Total depreciable assets          1,075,020 75,442,073            (362,396)              76,154,697 Total          3,765,722 77,160,302            (362,396)              80,563,628 Accumulated depreciation:

Buildings (8,858,251)           (715,640)              ‐                        (9,573,891) Machinery, equipment and vehicles (4,898,023)           (190,417)              367,256               (4,721,184) Infrastructure (10,624,967)        (980,858)              ‐                        (11,605,825) Land improvements (492,591)              (49,712)                (542,303) Total accumulated depreciation        (1,886,915) (24,873,832)           367,256               (26,443,203) Net depreciable assets          (811,895) 50,568,241              4,860                    49,711,494 Total net capital assets $      1,878,807 52,286,470 $         4,860 $                 54,120,425 $ 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, 2022
70 6.  ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued payroll and related liabilities consisted of the following at June 30, 2022:

Governmental Business‐type
Activities Activities Total
Accounts payable 665,019 $           638,969 $           1,303,988 $ Accrued payroll and related liabilities 212,957               57,643                270,600 Total 877,976 $           696,612 $           1,574,588 $ These amounts resulted in the following concentrations in payables:

Vendors  82%
Employees  18%
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, 2022:

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

Compensated absences 569,201 $           298,979 $        (369,078) $         499,102 $           49,910 $ Landfill post‐closure 639,804               ‐                         (391,213)            248,591               28,321 CalPERS side fund 417,043               ‐                         (417,043)            ‐                       ‐ 2021 Lease revenue bonds ‐                            11,440,000      ‐                           11,440,000         85,000 2022 Lease revenue bonds discount ‐                            (41,249)             ‐                           (41,249)                ‐ Total governmental activities $        11,697,730 1,626,048 $   (1,177,334) $      12,146,444 $      163,231 $ Business‐type activities
Bonds payable:
2014 Water Revenue Refunding Bond 964,000               ‐                         (312,000)            652,000               320,000 2018 WW Plant Certificates of Participation 4,827,000           ‐                         (87,000)               4,740,000           93,000 Loans payable:

SDWRL 448,261               ‐                         (86,002)               362,259               44,826 SDWRL discount 80,630                 ‐                         (19,777)               60,853                 8,063 Total business‐type activity debt           ‐ 6,319,891                         (504,779)            5,815,112           465,889 Compensated absences 97,765                 56,941              (50,109)               104,597               8,187 Total business‐type activities $        56,941 6,417,656 $           (554,888) $         5,919,709 $        474,076 $ City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2022
71 7.  LONG‐TERM LIABILITIES, Continued
Governmental Activities
2021 Lease Revenue Bonds
On October 28, 2021 the City issued $11,440,000 in Lease Revenue Bonds. Of the proceeds, $3,500,000 will be used to rehabilitate and remediate certain real property located in the City. The remaining proceeds of $7,540,414 were used to pay down a portion of the outstanding UAL projected by CalPERS. Interest is payable semi‐annually on May 1 and November 1 of each year, commencing November 1, 2022. The bonds mature in 2044 and principal is payable on May 1 each year, commencing May 1, 2023. The interest rate for the bonds varies from 0.74% to 3.5%.

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, 2022, 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, 2022, 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, 2022 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.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2022
72 7.  LONG‐TERM LIABILITIES, Continued
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. 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, 2022 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, 2022, 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, 2022 was $569,201 with $60,756 expected to be paid within a year; The business‐type activities compensated absences balance at June 30, 2022 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, 2022. 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, 2022
73 7.  LONG‐TERM LIABILITIES, Continued
Debt Service, Continued
Future debt service for Business‐Type Activities at June 30, 2022, is as follows:

Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 2023 85,000 $                  514,703 $                  91,000 $                93,850 $              320,000 $              15,055 $ 2024 195,000                   348,322                     93,000                   92,010                 332,000                 5,080 2025 265,000                   346,158                     95,000                   90,130                 ‐                              ‐ 2026 335,000                   342,262                     97,000                   88,210                 ‐                              ‐ 2027 420,000                   336,835                     99,000                   86,250                 ‐                              ‐ 2028‐2032 2,560,000                1,                  525,000 529,193                 400,450               ‐                              ‐ 2033‐2037 2,820,000                1,                  577,000 127,670                 345,410               ‐                              ‐ 2038‐2042 3,290,000                614,425                     639,000                 284,650               ‐                              ‐ 2043‐2047 1,470,000                75,250                        704,000                 217,560               ‐                              ‐ 2048‐2052 ‐                                 ‐                                   777,000                 143,610               ‐                              ‐ 2053‐2057 ‐                                 ‐                                   859,000                 61,850                 ‐                              ‐ 2058‐2062 ‐                                 ‐                                   184,000                 1,820                    ‐                              ‐ Total 11,440,000 $          5,234,818 $               4,740,000 $          1,905,800 $         652,000 $              20,135 $ Due within one year 85,000 $                  514,703 $                  91,000 $                93,850 $              320,000 $              15,055 $ Due after one year 11,355,000              4,720,115                  4,649,000             1,811,950            332,000                 5,080 Total 11,440,000 $          5,234,818 $               4,740,000 $          1,905,800 $         652,000 $              20,135 $ Year Ending
June 30,
Principal Interest Principal Interest
2023 52,889 $                  ‐ $                                463,889 $              108,905 $ 2024 105,778                   ‐                                   530,778                 97,090 2025 105,778                   ‐                                   200,778                 90,130 2026 105,778                   ‐                                   202,778                 88,210 2027 52,889                      151,889                 86,250 2028‐2032 ‐                                 ‐                                   525,000                 400,450 2033‐2037 ‐                                 ‐                                   577,000                 345,410 2038‐2042 ‐                                 ‐                                   639,000                 284,650 2043‐2047 ‐                                 ‐                                   704,000                 217,560 2048‐2052 ‐                                 ‐                                   777,000                 143,610 2053‐2057 ‐                                 ‐                                   859,000                 61,850 2058‐2062 ‐                                 ‐                                   184,000                 1,820 Total 423,112 $                ‐ $                                5,815,112 $          1,925,935 $ Due within one year 52,889 $                  ‐ $                                463,889 $              108,905 $ Due after one year 370,223                   ‐                                   5,351,223             1,817,030 Total 423,112 $                ‐ $                                5,815,112 $          1,925,935 $ Safe Drinking Water
Revolving Loan
2014 Water Revenue
Refunding Bonds
Business‐Type Activities
Business‐Type Activities
Governmental Activities
2021 Lease Revenue Bonds
Total
2018 WW Plant Certificates
Of Participation
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2022
74 8.  NET POSITION/ FUND BALANCES
Net position (deficit)
Governmental Business-type
Activities Activities Total
Net investment in capital assets 30,092,089 $ 48,678,202 $ 78,770,291 $ Restricted 6,078,004 108,064 6,186,068
Unrestricted (deficit) 5,303,936 12,984,900 18,288,836
Total 41,474,029 $ 61,771,166 $ 103,245,195 $
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, 2022:

Nonspendable:

Prepaid & Inventory 11,001 $
Loans/ Notes Receivable 985
Total Nonspendable $            11,986
Restricted:

Governmental Funds:

Special Sales Tax 2,026,740 $
Asset Forfeiture 411,937
Gas tax 51,395
Federal & State Grant Funds  87,932
Total Restricted $      2,578,004
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, 2022
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, 2022
Major Funds:

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

Special Revenue Funds
MCOG Overall Work Plan (5,707)
Developer Deposit Accounts  (6,325)
Capital Project Funds:

Coastal Trail (106,097)
Total (144,261) $
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, 2022
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, 2022:

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

General Fund 894,991 $             ‐ $
Street Resurfacing Capital Projects ‐                             26,132 Total Major Funds 894,991                26,132
Nonmajor Funds:

Special Revenue Funds
Gas tax ‐                             19,745
RMRA  ‐                             3,123
MCOG Overall Work Plan ‐                             12,883 State and Federal Grant Funds:

CDBG Super NOFA ‐                             173,621
HCD HOME Grant ‐                             464,980
Other State Grants ‐                             5,100
CDBG Grant COVID ‐                             83,310
Capital Project Funds:

Coastal Trail  ‐                             106,097
Total Nonmajor Funds ‐                             868,859 Total $             894,991 894,991 $
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2022
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, 2022:

Transfers In Transfers Out
Governmental Funds
Major Funds:

General Fund 56,774 $ 51,574 $
CDBG Program Income Special Revenue Fund 90,797
Speical Sales Tax Special Revenue Fund 1,479,148 -
Total Major Funds 56,774 1,621,519
Non-major Funds:

Special Revenue Funds
RMRA 21,460 -
Developer Deposit Account - 5,198
State and Federal Grant Funds
STP D1 Streets and Highway Allocation - 78,541
CDBG Grant 90,797 2,021,980
Capital Projects Fund
Coastal Trail 1,618,929 -
Total Non-major Funds 1,731,186 2,105,719
Total Governmental Funds 1,787,960 3,727,238
Proprietary Funds
Major Enterprise Funds
Water 2,021,979 -
Sewer 82,701 -
Total Proprietary Funds 2,021,979 82,701
Total Transfers $ 3,809,939 $ 3,809,939

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 California Intergovernmental Risk Authority (CIRA), 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 CIRA for its general insurance and self‐insurance coverage. The joint powers formation agreement of the CIRA provides that the CIRA 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, 2022
78 10.  RISK MANAGEMENT, Continued
CIRA is a risk sharing, self‐funded pool which is a direct purchase program. The CIRA 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 CIRA cost sharing pool limits are covered by CIRA 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 CIRA 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 CIRA in   FY 2021/22 were as follows:

Insurance Program Premium
Workers' Compensation 173,882 $
Liability 207,090
Property, Flood & Earthquake 158,969
Auto Physical Damage 12,369
$                    552,310
Claims Paid by the City for the 2021/21 fiscal year:

Insurance Program Claims
Workers' Compensation ‐ $
Liability and Property 525
$                            525
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2022
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, 2022, 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 11.06% 7.73%
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 18.19% 13.13%
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, 2022
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, 2022, the contributions recognized as part of pension expense for each Plan were as follows:

Miscellaneous Plans Safety  Plans
Contributions ‐ employer 4,417,473 $                          $                         4,371,829 Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2022, the City reported net pension liabilities for its proportionate shares of the net pension liability of each Plan as follows
Proportionate Share
of Net Pension Liability
Miscellaneous Plans 3,153,761 $
Safety Plans 3,194,969
Total Net Pension Liability 6,348,730 $
The City's net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2021, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The City's 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, 2022 and 2021 was as follows:

Miscellaneous Safety Total
Proportion ‐ June 30, 2021 0.13012% 0.07793% 0.09816%
Proportion ‐ June 30, 2022 0.16609% 0.09104% 0.11739%
Change ‐ Increase/(Decrease) 0.03598% 0.01310% 0.01923% City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2022
81 11.  PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
For the year ended June 30, 2022, the City recognized pension expense of $1,028,169 for the Miscellaneous Plan and $684,949 for the Safety Plan. At June 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred Deferred Deferred Deferred Deferred
Outflows  Inflow  Outflows  Inflow  Outflows  Inflow
of Resources of Resources of Resources of Resources of Resources of Resources Changes in assumptions ‐ $                 ‐ $                ‐ $                 ‐ $                ‐ $                 ‐ $ Differences between expected and actual
experiences           ‐ 353,660                   545,858           ‐                   899,518           ‐ Differences between projected and actual
investment earnings ‐                    2,753,067       ‐                    1,901,620       ‐                    4,654,687 Differences between the employer's
contributions and proportionate share of the                     565,548 ‐           ‐                    501,956           ‐                    1,067,504 Change in employer's proportion           ‐ 146,586                   16,464              28,543             163,050           28,543 Pension contributions subsequent to
measurement date        ‐ 4,417,473                   4,371,829        ‐                   8,789,302        ‐ Total 4,917,719 $     3,318,615 $    4,934,151 $     2,432,119 $    9,851,870 $     5,750,734 $ Miscellaneous Plan Safety Plan Total
$8,789,303  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, 2023.    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
2023 (706,903) $          (450,565) $        (1,157,468) $ 2024 (704,471)             (469,290)           (1,173,761) 2025 (646,189)             (426,642)           (1,072,831) 2026 (760,806)             (523,299)           (1,284,105) 2027 ‐                       ‐                     ‐
Thereafter ‐                       ‐                     ‐ $      (1,869,796) (2,818,369) $     (4,688,165) $
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2022
82 11.  PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Actuarial Assumptions ‐The total pension liabilities in the June 30, 2022 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Safety ‐ Police
PEPRA ‐
Miscellaneous
PEPRA Safety ‐
Police Fire Safety
Valuation Date 30‐Jun‐20 30‐Jun‐20 30‐Jun‐20 30‐Jun‐20 30‐Jun‐20 Measurement  30‐Jun‐21 30‐Jun‐21 30‐Jun‐21 30‐Jun‐21 30‐Jun‐21 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, 2022 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 7.15 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 7.15 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 7.15 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, 2022
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 6,180,0              3,153,761 88          651,940 Employer's Net Pension Liability/(Asset) ‐ Safety 5,706,298              3,194,969          1,132,222 Employer's Net Pension Liability/(Asset) ‐ Total 11,886,386 $         6,348,730 $      1,784,162 $ 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, 2022
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, 2022, 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, 2022
85 12.  OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued Employees Covered by benefit terms
At June 30, 2022, 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, 2022, the City’s cash contributions were $5,000 in payments to the trust, $410,289 cash benefit payments, and the estimated implied subsidy was $39,000 resulting in total payments of $454,289.

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2021 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021 that was rolled forward to determine the June 30, 2022 total OPEB liability, based on the following actuarial methods and assumptions:

Actuarial Valuation Date June 30, 2021
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 6.25% at June 30, 2021

6.75% at June 30, 2020
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 2.50% 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 ‐ 6.50% for 2023, decreasing to an ultimate rate of 3.75% in 2076 and later years
Medicare ‐ 5.65% for 2023, decreasing to an ultimate rate of 3.75% 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, 2022
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 59% 4.56%
Fixed Income 25% 78.00%
TIPS 5% ‐0.08%
Commodities 3% 1.22%
REITs 8% 4.06%
100%
Expected Real
Rate of Return
Discount Rate
The discount rate used to measure the total OPEB liability was 6.25 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 6/30/2021* 5,792,793 $         2,686,418 $           3,106,375 $ Changes for the year
Service Cost 74,649                  ‐                                74,649 Interest 381,864                ‐                                381,864 Changes of benefit terms ‐                              ‐                                ‐ Actual vs. expected experience (63,893)                 ‐                                (63,893) Assumption changes (26,853)                 ‐                                (26,853) Contributions ‐ employer ‐                              420,407                  (420,407) Contributions ‐ employee ‐                              ‐                                ‐ Net investment income ‐                              738,656                  (738,656) Benefit payments (420,407)              (420,407)                ‐ Administrative expenses ‐                              (1,017)                     1,017 Net Changes (54,640)                 737,639                  (792,279) Balance at 6/30/2022** 5,738,153 $         3,424,057 $           2,314,096 $ *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, 2022
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 2022 is 6.25%. 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, 2022:
1% Decrease Current Rate 1% Increase
Change in Discount Rate 5.25% 6.25% 7.25%
Net OPEB Liability 2,932,372 $         2,314,096 $         1,791,297 $ 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, 2022 (Healthcare Cost Trend Rate was assumed to start at 6.5% and grade down to

3.75% for years 2076 and thereafter):

Change in Healthcare Cost Trend Rate 1% Decrease Current Trend 1% Increase Net OPEB Liability 1,771,120 $         2,314,096 $         2,956,245 $ 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, 2022)
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2022
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, 2022, the City recognized OPEB expense of $89,678. As of fiscal year ended June 30, 2022, 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 ‐ $                      112,899 $
Changes in assumptions 54,625                   55,092
Net difference between projected and actual
earnings on plan invesments ‐                          395,443 Employer contributions made subsequent to the
measurement date 454,289                 ‐
Total $             563,434 508,914 $
The $454,289 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2022 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 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
2023 (175,805) $
2024 (126,735)
2025 (94,796)
2026 (111,473)
2027 ‐
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, 2022
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, 2022:

Balance Balance Due Within
June 30, 2021 Additions Retirements June 30, 2022 One Year Trust Activities:
2015 Refunding Tax Allocation Bonds 3,180,000 $      ‐ $                  (165,000) $      3,015,000 $        170,000 $ 2015 Refunding Tax Allocation Bonds Discount (25,844)             ‐                     1,782               (24,062)                (1,620) Total trust fund debt $      ‐ 3,154,156 $                  (163,218) $      2,990,938 $        168,380 $ Deferred outflows:
2015 Refunding Tax Allocation Bonds Deferred
Loss 75,155               (5,182)              69,973                 5,182 City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2022
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, 2022 was $3,015,000.

Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 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 180,000                   70,100                        (1,620)                    ‐                             178,380                 70,100 2028‐2032 990,000                   264,400                     (8,100)                    ‐                             981,900                 264,400 2033‐2037 1,160,000                97,013                        (7,862)                    ‐                             1,152,138             97,013 2038‐2042 ‐                                 ‐                                   ‐                              ‐                             ‐                              ‐ Total 3,015,000 $             756,488 $                  (24,062) $               ‐ $                         2,990,938 $          756,488 $ Due within one year 170,000 $                86,550 $                    (1,620) $                 ‐ $                         168,380 $              86,550 $ Due after one year 2,845,000                669,938                     (22,442)                  ‐                             2,822,558             669,938 Total 3,015,000 $             756,488 $                  (24,062) $               ‐ $                         2,990,938 $          756,488 $ Discount Total
Fiduciary Activities
2015 Refunding
Bonds
2015 Refunding Bonds

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 2021/22 no claims were disallowed.

Commitments
The City’s unexpended contractual commitments as of June 30, 2022 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, 2022
91 15.  NEW ACCOUNTING PRONOUNCEMENTS
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. 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.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2022
92 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,
2022 2021 2020 2019 2018
Total OPEB Liability
Service Cost $ 81,253 74,649 $ 104,512 $ 111,530 $ 119,019 $ Interest on the total OPEB liability 383,562 381,864 378,816 366,137 353,775 Experience (Gains)/Losses - - (287,306) - -
Actual vs. expected experience - (63,893) - - -
Changes of assumptions (96,029) (26,853) 218,506 - -
Benefit payments (354,262) (420,407) (287,648) (277,993) (286,331) Net change in total OPEB liability (54,640) 14,524 126,880 199,674 186,463 Total OPEB liability ‐ beginning 5,778,269 5,792,793 5,651,389 5,451,715 5,265,252 Total OPEB liability ‐ ending (a) $ 5,792,793 5,738,153 $ 5,778,269 $ 5,651,389 $ 5,451,715 $ Plan fiduciary net position
Contributions ‐ employer $ 359,262 420,407 $ 292,648 $ 492,993 $ 534,256 $ Contributions ‐ employee - - - - -
Actual investment income 91,502 738,656 150,805 164,052 172,839 Administrative expense (1,266) (1,017) (522) (3,826) (883) Benefit payments (354,262) (420,407) (287,648) (277,993) (286,331) Net change in plan fiduciary net position 95,236 737,639 155,283 375,226 419,881 Plan fiduciary net position ‐ beginning 2,591,182 2,686,418 2,435,899 2,060,673 1,640,792 Plan fiduciary net position ‐ ending (b) $ 2,686,418 3,424,057 $ 2,591,182 $ 2,435,899 $ 2,060,673 $ Net OPEB liability ‐ ending (a) ‐ (b) $ 3,106,375 2,314,096 $ 3,187,087 $ 3,215,490 $ 3,391,042 $ Covered payroll $ 1,132,693 1,040,847 $ 1,834,372 $ 2,370,484 $ 2,197,777 $ Net OPEB liability as a percentage of
covered payroll 222.33% 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, 2022
Fiscal Year Ended June 30, 2022 2021 2020 2019 2018
Actuarially Determined Contribution (ADC) 343,213 $ 348,790 $ 374,658 $ 375,390 $ 559,726 $ Contributions in relation to the ADC 454,289 425,407 359,262 292,648 492,993 Contribution deficiency ( excess) (111,076) $ (76,617) $ 15,396 $ 82,742 $ 66,733 $ Covered payroll 1,040,847 1,132,693 1,893,338 1,834,372 2,730,484 Contributions as a percentage of covered payroll 43.65% 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*
2022 2021 2020 2019 2018 2017
Contractually required contribution (actuarially
determined) $ 540,516 628,487 $ 514,099 $ 455,093 $ 430,051 $ 392,300 $ Contributions in relation to the actuarially
determined contributions (540,516) (628,487) (514,099) (394,321) (430,051) 392,300 Contribution deficiency (excess) - $ - $ - $ 60,772 $ - $ 784,600 $ Covered payroll $ 2,327,258 2,614,508 $ 2,661,903 $ 2,833,921 $ 2,641,425 $ 2,598,675 $ Contribution as a percentage of covered payroll 24.04% 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*
2022 2021 2020 2019 2018 2017
Contractually required contribution (actuarially
determined) $ 558,561 620,401 $ 637,647 $ 471,193 $ 298,630 $ 387,206 $ Contributions in relation to the actuarially
determined contributions (558,561) (620,401) (637,647) (471,193) (298,630) (387,206) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ Covered payroll $ 1,071,290 1,119,662 $ 1,145,799 $ 1,048,497 $ 1,268,709 $ 1,245,549 $ Contribution as a percentage of covered payroll 55.41% 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*
2021 2020 2019 2018 2017 2016
Plan's Proportion of the Net Pension Liability/(Asset) 0.16609% 0.13012% 0.12508% 0.12037% 0.11653% 0.11210% Plan's Proportionate Share of the Net Pension
Liability/(Asset) $ 5,488,390 3,153,761 $ 5,008,648 $ 4,593,661 $ 4,593,661 $ 3,894,091 $ Plan's Covered Payroll $ 2,661,903 2,327,258 $ 2,833,921 $ 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 Payroll 135.51% 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 86.24% 74.96% 76.25% 76.38% 76.38% 82.66% Plan's Proportionate Share of Aggregate Employer
Contribution $ 734,213 777,490 $ 455,093 $ 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*
2021 2020 2019 2018 2017 2016
Plan's Proportion of the Net Pension Liability/(Asset) 0.09104% 0.07793% 0.07899% 0.07811% 0.08042% 0.08218% Plan's Proportionate Share of the Net Pension
Liability/(Asset) $ 5,192,221 3,194,968 $ 4,931,069 $ 4,667,131 $ 4,165,367 $ 3,320,431 $ Plan's Covered Payroll 1,071,290 $ 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 Payroll 298.24% 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 82.87% 69.95% 70.68% 69.76% 70.60% 75.04% Plan's Proportionate Share of Aggregate Employer
Contribution $ 625,589 826,040 $ 637,647 $ 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, 2022
Special Capital
Revenue Funds Projects Funds
ASSETS
Cash and investments $ - 2,206,452 $ 2,206,452 $
Receivables:

Intergovernmental - 1,051,477 1,051,477
Loans/Notes receivable 201,407 - 201,407
Total assets $ - 3,463,076 $ 3,463,076 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 399,144 $ - $ 399,144 $ Due to other funds 762,762 106,097 868,859
Total liabilities: 106,097 1,161,906 1,268,003
Deferred inflows of resources:

Unavailable revenue 201,407 - 201,407
Total deferred inflows of resources - 201,407 201,407
Total liabilities and deferred inflows 106,097 1,363,313 1,469,410 Fund Balances:

Restricted - 551,264 551,264
Assigned - 1,560,531 1,560,531
Unassigned (deficit) (12,032) (106,097) (118,129)
Total fund balances 2,099,763 1,993,666 (106,097)
Total liabilities, deferred inflows and fund balances $ - 3,463,076 $ 3,463,076 $ 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, 2022
Special Capital
Revenue Funds Projects Funds
REVENUES:

Taxes and assessments $ - 63,939 $ 63,939 $
Fines and forfeitures 49,040 - 49,040
Intergovernmental - 4,299,613 4,299,613
Use of money and property - 8,186 8,186
Total revenues - 4,420,778 4,420,778
EXPENDITURES:

Current:

General government - 70,178 70,178
Public safety - 181,610 181,610
Public works 377,315 - 377,315
Community development - 753,760 753,760
Capital outlay 1,504,213 - 1,504,213
Total expenditures 1,504,213 1,382,863 2,887,076
REVENUES OVER (UNDER) EXPENDITURES (1,504,213) 3,037,915 1,533,702 OTHER FINANCING SOURCES (USES):

Transfers in 1,618,929 112,257 1,731,186
Transfers out - (2,105,719) (2,105,719)
Total other financing
sources (uses) 1,618,929 (1,993,462) (374,533)

REVENUES AND OTHER FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND OTHER
FINANCING (USES) 114,716 1,044,453 1,159,169
FUND BALANCES:

Beginning of year (220,813) 1,055,310 834,497
End of year $ (106,097) 2,099,763 $ 1,993,666 $
Funds Totals
Non-Major
Governmental Funds
104
This page intentionally left blank.
105
Fund
General Plan Maintenance Fee
Housing Trust
Parking
Parkland Monitoring and Reporting
State Tobacco License Fee
State Disability Access Fee
Asset Forfeiture
(continued)
To account for monies obtained from seized assets of criminal activities. The funds are used solely to support law enforcement purposes.

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.

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 Georgia Pacific for monitoring and maintenance of the Coastal Trail remediation area.
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 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.

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.
107
Fund
Developer Deposits Accounts
Community Development Block Grant
Funds Unclassified Program Income
COPS AB1913
Bulletproof Vest Partnership Grant
CDBG Super NOFA
(continued)
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.

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
108
Fund
STP D1 Streets & Highways Allocation
State Parks Prop 84 Grant
HCD HOME Grant
Other State Grants
(concluded)
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.

NON-MAJOR SPECIAL REVENUE FUNDS, Continued
Description
109
City of Fort Bragg, California
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2022
General Plan
Maintenance
Fee Housing Parking
ASSETS
Cash and investments $ 75,644 139,061 $ 34,791 $
Receivables:

Intergovernmental - - -
Loans/Notes receivable - - -
Other receivable - - -
Total assets $ 75,644 139,061 $ 34,791 $

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 75,644 34,791 139,061
Unassigned (deficit) - - -
Total fund balances 75,644 139,061 34,791
Total liabilities deferred inflows and fund balances $ 75,644 139,061 $ 34,791 $ 110
Waste
Parkland State State Construction/ Management
Monitoring/ Tobacco Disability Asset Demolition Community Reporting License Fee Access Fee Forfeiture Ordinance Benefit Pymt Gas Tax $ 19,569 128,478 $ 19,107 $ 411,937 $ 598 $ 269 $ - $
- - 23 - - - 71,140
- - - - - - -
- - - - - - -
$ 19,569 128,478 $ 19,130 $ 411,937 $ 598 $ 269 $ 71,140 $ $ - - $ 4,100 $ - $ - $ - $ - $
- - - - - - 19,745
- - 4,100 - - - 19,745
- - - - - - -
- - - - - - -
- - 4,100 - - - 19,745
- - - - - - -
- - - 411,937 - - 51,395
128,478 19,569 15,030 - 598 269 -
- - - - - - -
19,569 128,478 15,030 411,937 598 269 51,395
$ 19,569 128,478 $ 19,130 $ 411,937 $ 598 $ 269 $ 71,140 $ (continued)
111
City of Fort Bragg, California
Combining Balance Sheet
Nonmajor Special Revenue Funds, continued
June 30, 2022
MCOG
Traffic & Fire Overall Work
RMRA Safety Equipment Plan
ASSETS
Cash and investments $ - - $ 212,855 $ - $
Receivables:

Intergovernmental 24,443 - - 7,176
Loans/Notes receivable - - - -
Other receivable - - 3,740 -
Total assets $ - 24,443 $ 216,595 $ 7,176 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable - $ - $ - $ - $
Due to other funds 3,123 - - 12,883
Total liabilities: - 3,123 - 12,883
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources: - - - -
Total liabilities and deferred inflows - 3,123 - 12,883 Fund Balances:

Nonspendable - - - -
Restricted - - - -
Assigned - 21,320 216,595 -
Unassigned (deficit) - - - (5,707)
Total fund balances - 21,320 216,595 (5,707)
Total liabilities deferred inflows and fund balances $ - 24,443 $ 216,595 $ 7,176 $ 112
OJ Park Developer Federal and
Maintenance Deposit State Grant
Fund Accounts Funds Total
$ 88,079 2,110 $ 1,073,954 $ 2,206,452 $
- - 948,695 1,051,477
- - 201,407 201,407
- - - 3,740
$ 88,079 2,110 $ 2,224,056 $ 3,463,076 $
$ 94,404 - $ 300,640 $ 399,144 $
- - 727,011 762,762
94,404 - 1,027,651 1,161,906
- - 201,407 201,407
- - 201,407 201,407
94,404 - 1,229,058 1,363,313
- - - -
- - 87,932 551,264
2,110 - 907,066 1,560,531
(6,325) - - (12,032)
(6,325) 2,110 994,998 2,099,763
$ 88,079 2,110 $ 2,224,056 $ 3,463,076 $
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, 2022
General Plan
Maintenance
Fee Housing Parking
REVENUES:

Taxes and assessments $ - - $ - $
Fines and forfeitures - - -
Intergovernmental - - -
Use of money and property 1,343 538 250
Total revenues 538 1,343 250
EXPENDITURES:

Current:

General government 70,022 - -
Public safety - - -
Public works - - -
Community development 1,500 - -
Total expenditures 1,500 70,022 -

REVENUES OVER (UNDER)
EXPENDITURES (962) (68,679) 250
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) (962) (68,679) 250
FUND BALANCES (DEFICITS):

Beginning of year 207,740 76,606 34,541
End of year $ 75,644 139,061 $ 34,791 $
114
Waste
Parkland State State Construction/ Management
Monitoring/ Tobacco Disability Asset Demolition Community Reporting License Fee Access Fee Forfeiture Ordinance Benefit Pymt Gas Tax $ - - $ - $ - $ - $ - $ 6,764 $
- - - 46,855 - - -
2,590 2,955 - - - - 206,401
899 130 122 2,833 - - 824
2,720 899 3,077 49,688 - - 213,989
- - 156 - - - -
- - - 32,704 - - -
- - - - - - 217,262
- - - - - - -
- - 156 32,704 - - 217,262
2,720 899 2,921 16,984 - - (3,273)
- - - - - - -
- - - - - - -
- - - - - - -
2,720 899 2,921 16,984 - - (3,273)
127,579 16,849 12,109 394,953 598 269 54,668
$ 19,569 128,478 $ 15,030 $ 411,937 $ 598 $ 269 $ 51,395 $ 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, 2022
MCOG
Traffic & Fire Overall Work
RMRA Safety Equipment Plan
REVENUES:

Taxes and assessments $ - - $ 57,175 $ - $
Fines and forfeitures - 2,185 - -
Intergovernmental 147,290 - - -
Use of money and property - - 1,247 -
Total revenues 2,185 147,290 58,422 -
EXPENDITURES:

Current:

General government - - - -
Public safety 2,185 - - -
Public works 147,430 - - 12,623
Community development - - - -
Total expenditures 2,185 147,430 - 12,623

REVENUES OVER (UNDER)
EXPENDITURES - (140) 58,422 (12,623)
OTHER FINANCING SOURCES (USES):

Transfers in 21,460 - - -
Transfers out - - - -
Total other financing
sources and uses - 21,460 - -

REVENUES AND OTHER FINANCING

SOURCES OVER (UNDER)

EXPENDITURES AND OTHER
FINANCING (USES) - 21,320 58,422 (12,623)
FUND BALANCES (DEFICITS):

Beginning of year - - 158,173 6,916
End of year $ - 21,320 $ 216,595 $ (5,707) $
116
OJ Park Developer Federal and
Maintenance Deposit State Grant
Fund Account Funds Totals
$ - - $ - $ 63,939 $
- - - 49,040
- - 3,940,377 4,299,613
- - - 8,186
- - 3,940,377 4,420,778
- - - 70,178
- 146,721 - 181,610
- - - 377,315
- - 752,260 753,760
- - 898,981 1,382,863
- - 3,041,396 3,037,915
- - 112,257 90,797
- (2,100,521) (5,198) (2,105,719)
(5,198) - (2,009,724) (1,993,462)
(5,198) - 1,031,672 1,044,453
2,110 (36,674) (1,127) 1,055,310
$ (6,325) 2,110 $ 994,998 $ 2,099,763 $
117
City of Fort Bragg, California
Combining Balance Sheet
Federal and State Grant Special Revenue Funds
June 30, 2022
CDBG
Unclassified CDBG
Program Income COPS Super NOFA
ASSETS
Cash and investments $ 15,861 7,025 $ 34,496 $
Restricted cash and investments - -
Receivables:

Intergovernmental - - 315,677
Loans/Notes receivable - - -
Total assets $ 15,861 7,025 $ 350,173 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable - $ - $ 244,258 $
Due to other funds - - 173,621
Total liabilities - - 417,879
Deferred inflows of resources:

Unavailable revenue
Total deferred inflows of resources: - - -
Total liabilities and deferred inflows - - 417,879
Fund Balances:

Restricted 7,025 15,861 -
Unassigned (deficit) - - (67,706)
Total fund balances 15,861 7,025 (67,706)
Total liabilities deferred inflows and fund balances $ 15,861 7,025 $ 350,173 $ 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 $ 5,799 $ 122,426 872,081 1,073,954 $ -
5,460 591 453,901 88,929 84,137 - 948,695
- - 201,407 - - 201,407
$ 591 6,726 $ 670,308 $ 94,728 $ 206,563 $ 872,081 $ 2,224,056 $ $ - - $ - $ 35,820 $ 14,407 $ 6,155 300,640 $
- - 464,980 5,100 - 83,310 727,011
- - 464,980 40,920 14,407 89,465 1,027,651
- - 201,407 - - - 201,407
- - 201,407 - - - 201,407
- - 666,387 40,920 14,407 89,465 1,229,058
591 6,726 3,921 53,808 - - 87,932
- - - - 192,156 782,616 907,066
591 6,726 3,921 53,808 192,156 782,616 994,998
$ 591 6,726 $ 670,308 $ 94,728 $ 206,563 $ 872,081 $ 2,224,056 $ (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, 2022
Bulletproof
Vest Partnership CDBG
COPS Grant Super NOFA
REVENUES:

Intergovernmental $ 1,297 161,285 $ 343,260
Total revenues 1,297 161,285 343,260
EXPENDITURES:

Current:

Public safety 145,424 1,297 -
Community development - - 381,808
Total expenditures 1,297 145,424 381,808

REVENUES OVER (UNDER)
EXPENDITURES - 15,861 (38,548)
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) - 15,861 (38,548)
FUND BALANCES (DEFICIT):

Beginning of year - - (29,158)
End of year $ - 15,861 $ (67,706) $
120
STP D1
Streets and Other
Highway State CDBG Grant
Allocation Grants CDBG Grant COVID Totals
$ 197,605 84,001 $ 2,280,848 $ 872,081 $ 3,940,377 $
197,605 84,001 2,280,848 872,081 3,940,377
- - - - 146,721
132,328 155,575 82,549 - 752,260
132,328 - 155,575 82,549 898,981
65,277 84,001 2,125,273 789,532 3,041,396
- - 90,797 - 90,797
- (78,541) (2,021,980) - (2,100,521)
- (78,541) (1,931,183) - (2,009,724)
65,277 5,460 194,090 789,532 1,031,672
1,266 (11,469) (1,934) (6,916) (36,674)
$ 53,808 6,726 $ 192,156 $ 782,616 $ 994,998 $
(concluded)
121
City of Fort Bragg, California
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2022
Coastal
Trail
ASSETS
Cash and investments $ -
Total assets $ -

LIABILITIES

AND FUND BALANCES
Liabilities:

Accounts payable - $
Due to other funds 106,097
Total liabilities: 106,097
Fund Balances:

Unassigned (deficit) (106,097)
Total fund balances (106,097)
Total liabilities and fund balances $ -
122
City of Fort Bragg, California
Nonmajor Capital Projects Fund
For the year ended June 30, 2022
Coastal
Trail
REVENUES:

Intergovernmental $ -
Other revenues -
Total revenues -
EXPENDITURES:

Current:

Community development -
Capital outlay 1,504,213
Total expenditures 1,504,213

REVENUES OVER (UNDER)
EXPENDITURES (1,504,213)
OTHER FINANCING SOURCES (USES):

Transfers in 1,618,929
Transfers out -
Total other financing
sources and uses 1,618,929

REVENUES AND OTHER FINANCING

SOURCES OVER (UNDER)

EXPENDITURES AND OTHER
FINANCING (USES) 114,716
FUND BALANCES (DEFICITS):

Beginning of year (220,813)
End of year $ (106,097)
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, 2022
Information
Building Technology Fleet
Maintenance Fund Services Totals
ASSETS
Current assets:

Cash and investments 680,261 $ 106,728 $ 1,143 $ 788,132 $ Total current assets 106,728 680,261 1,143 788,132
Noncurrent assets:

Capital assets, net 59,891 15,372 1,332,193 1,407,456
Total noncurrent assets 15,372 59,891 1,332,193 1,407,456 Total assets $ 122,100 740,152 $ 1,333,336 $ 2,195,588 $

LIABILITIES AND NET POSITION
Current liabilities:

Accounts payable 231 $ 21,320 $ 17,985 39,536 $
Accrued liabilities - 6,902 - 6,902
Total current liabilities 28,222 231 17,985 46,438
Noncurrent liabilities:

Compensated absences - - - -
Total liabilities 28,222 231 17,985 46,438
Net Position:

Net investment in capital assets 59,891 15,372 1,332,193 1,407,456 Unrestricted 680,030 78,506 (16,842) 741,694
Total net position 93,878 739,921 1,315,351 2,149,150
Total liabilities and net position $ 122,100 740,152 $ 1,333,336 $ 2,195,588 $ 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, 2022
Information
Building Technology Fleet
Maintenance Fund Services Totals
OPERATING REVENUES:

Interdepartmental charges 200,959 $ 497,457 $ 342,308 $ 1,040,724 $ Other 12,543 - - 12,543
Total operating revenues 497,457 213,502 342,308 1,053,267 OPERATING EXPENSES:

Personnel services 105,998 103,598 150,439 360,035
Repairs and maintenance 15,603 1,964 51,986 69,553
Materials and supplies - 413,880 99,556 513,436
Contractual services - 390 439 829
Depreciation - 15,450 69,881 85,331
Total operating expenses 535,282 121,601 372,301 1,029,184 OPERATING INCOME (LOSS) (37,825) 91,901 (29,993) 24,083 NET INCOME (LOSS) BEFORE TRANSFERS (37,825) 91,901 (29,993) 24,083 Transfers in - - - -
Transfers out - - - -
Total transfers - - - -
Change in net position (37,825) 91,901 (29,993) 24,083
NET POSITION (DEFICIT):

Beginning of year 648,020 131,703 1,345,344 2,125,067
End of year 739,921 $ 93,878 $ 1,315,351 $ 2,149,150 $
126
City of Fort Bragg, California
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2022
Information
Building Technology Fleet
Maintenance Fund Services Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from interfund services provided 213,502 $ 497,457 $ 342,308 $ 1,053,267 $ Cash paid to suppliers for goods and services (15,419) (426,835) (153,232) (595,486) Cash paid to employees for services (105,998) (99,734) (150,439) (356,171) Net cash provided (used) by operating activities (29,112) 92,085 38,637 101,610

CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:

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

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Acquisition and construction of capital assets (12,491) - (221,526) (234,017) Net cash (used) by capital and related financing activities - (12,491) (221,526) (234,017) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest on investments - - - -
Net cash provided by investing activities - - - -
Net increase (decrease) in cash and cash equivalents (29,112) 79,594 (182,889) (132,407) CASH AND CASH EQUIVALENTS:

Beginning of year 600,667 135,840 184,032 920,539
End of year 680,261 $ 106,728 $ 1,143 $ 788,132 $
Reconciliation of income from operations to net
cash provided (used) by operating activities:

Operating income (loss) 91,901 $ (37,825) $ (29,993) $ 24,083 $ Adjustments to reconcile operating income
to net cash provided by operating activities:

Depreciation - 15,450 69,881 85,331
(Increase) decrease in current assets:

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

Accounts payable 184 (10,601) (1,251) (11,668)
Accrued liabilities - 3,864 - 3,864
Net cash provided by operating activities $ (29,112) 92,085 $ 38,637 $ 101,610 $ 127
This page intentionally left blank.
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)
2013 2014 2015 2016
Governmental activities
Net investment in capital assets 30,444 $       31,944 $       35,914 $       38,647 $ Restricted 5,671            5,987            2,289            3,536 Unrestricted (deficit) 428               232               (203)              (399) Total governmental activities net position $       38,163 36,543 $       38,625 $       41,784 $ Business‐type activities
Net investment in capital assets 30,764 $       30,531 $       30,047 $       30,503 $ Restricted 72                  101               108               108 Unrestricted  (deficit) 4,294            3,603            3,649            4,232 Total business‐type activities net position $       34,235 35,130 $       33,804 $       34,843 $ Primary government
Net investment in capital assets 61,208 $       62,475 $       65,961 $       69,150 $ Restricted 5,743            6,088            3,022            3,644 Unrestricted (deficit) 4,722            3,835            3,466            3,833 Total primary government net position $       72,398 71,673 $       72,429 $       76,627 $ Source: City Finance Department
$‐
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
2013 2014 2015 2016 2017
Governmental activities Business‐type activities
130
2017 2018 2019 2020 2021 2022
$       42,293 39,523 $       41,400 $       42,102 $       41,686 $       30,092 $ 3,758 2,513            1,279            1,922            2,947            2,578 (5,115) (1,518)           (2,456)           (5,026)           (4,140)           5,304 $       40,935 40,518 $       40,223 $       38,998 $       40,493 $       37,974 $ $       33,572 31,597 $       37,806 $       45,807 $       46,331 $       48,678 $ 108 108               108               108               108               108 7,515 6,912            8,094            8,704            12,277          12,985 $       41,195 38,617 $       46,008 $       54,619 $       58,716 $       61,771 $ $       75,865 71,119 $       79,206 $       87,909 $       88,017 $       78,770 $ 3,866 2,621            1,387            2,030            3,055            2,686 2,400 5,395            5,638            3,678            8,137            18,289 $       82,131 79,135 $       86,231 $       93,617 $       99,209 $       99,745 $ 2018 2019 2020 2021 2022
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)
2013 2014 2015 2016
Expenses
Governmental activities:

General government 2,708 $      1,500 $        2,593 $        2,877 $ Public safety         3,851 3,399            3,663            4,187 Public works 1,874         2,176            2,435            2,108 Community development 1,529         3,485            840               1,700 Parks and recreation ‐                  ‐                    ‐                    ‐ Marketing and promotions ‐                  ‐                    ‐                    ‐ Interest and fiscal charges               42 49                 30                 26 Total governmental activities expenses 9,559         11,054         9,561            10,898 Business‐type activities:

Water  2,138         2,539            2,286            2,264 Sewer 3,063         3,095            2,801            2,897 C.V. Starr Center 2,236         2,262            2,382            2,292 Total business‐type activities expenses 7,437         7,896            7,469            7,453 Total primary government expenses 16,996       18,950         17,030         18,351 Program revenues
Governmental activities:

Charges for services:

General government 2,701         2,851            2,809            2,818 Public safety               72 40                 50                 289 Public works 5                 34                 102               344 Community development 100             58                 ‐                    30 Operating grants and contributions 1,572         1,567            4,702            725 Capital grants and contributions 303             1,818            2,383            3,762 Total governmental activities program revenues 4,721         6,400            10,046         7,968 Business‐type activities:

Charges for services:

Water  2,404         2,229            2,496            2,624 Wastewater 3,197         3,004            3,194            3,332 C.V. Starr Center 591             635               706               722 Operating grants and contributions ‐                  ‐                    ‐                    ‐ Capital grants and contributions ‐                  ‐                    ‐                    ‐ Total business‐type activities program revenues 6,192         5,868            6,396            6,678 Total primary government program revenues 10,913       12,268         16,442         14,646 Net (Expense)/Revenue
Governmental activities (4,838) (4,654) 485         (2,930) Business‐type activities (1,245)        (2,028)          (1,073)          (775) Total primary government net expense (6,083)        (6,682)          (588)              (3,705) 132
2017 2018 2019 2020 2021 2022
$        2,804 2,221 $        2,384 $        2,623 $        3,581 $        4,515 $ 4,461 4,388           4,338           5,374           4,386           4,903 2,873 2,750           2,979           3,122           2,438           3,551 1,208 1,018           1,056           876              4,105           825 ‐ 38                    ‐                    ‐                    ‐                    ‐ ‐ ‐                    ‐                    186              93                 227 53 21                 47                 5                   38                 438 11,399 10,434         10,804         12,186         14,641         14,459 2,034 2,158           1,920           1,676           1,688           2,677 2,569 2,847           2,674           2,302           3,043           3,942 2,386 2,320           2,722           2,081           1,229           2,145 6,989 7,325           7,316           6,059           5,960           8,764 18,388 17,760         18,120         18,245         20,601         23,223 1,324 1,967           1,108           880              978              1,584 365 299              371              290              252              319 1,049 558           1,155           1,980           1,583           2,006 520 232              293              ‐                    ‐                    0 2,259 1,251           765              800              3,974           3,968 3,324 922           3,296           1,345           1,584           187 8,840 5,227           6,988           5,295           8,371           8,062 2,909 2,683           3,077           3,181           3,660           3,033 3,495 3,305           3,599           3,484           4,017           3,584 743 696              711              466              ‐                    983 ‐ ‐                    ‐                    ‐                    ‐                    ‐ ‐ ‐                    ‐                    4,512           ‐                    646 7,147 6,683           7,387           11,643         7,677           8,245 15,987 11,911         14,375         16,938         16,048         16,308 (2,558) (5,207)          (3,817)          (6,891)          (6,270)          (6,397) 158 (642)              70                 5,584           1,718           (519) (2,400) (5,849)          (3,747)          (1,307)          (4,552)          (6,915) (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)
2013 2014 2015 2016
Governmental activities:

Taxes:

Property taxes 924             943               909               1,007 Sales and use tax 2,390         2,490            2,523            2,458 Transient lodging tax 1,536         1,667            1,858            1,948 Franchise taxes 482             496               493               491 Other taxes 203             411               435               403 Use of money and property             45 103                 87                 113 Unrealized gains and losses ‐                  ‐                    ‐                    ‐ Other general revenues 81               67 222                 120 Special Items
Transfer in (out) (17)              (1)                  (89)                (451) Extraordinary item: Redevelopment dissolution ‐                  ‐                    ‐                    ‐ Total governmental activities 5,702         6,273            6,283            6,089 Business‐type activities:

Property taxes 231             216               234               220 Sales and use tax 772             811               807               846 Use of money and property                 33 8                 42                 27 Other revenues 98               72                 161               271 Transfer in (out) 17               1                   89                 451 Total business‐type activities 1,126         1,133            1,333            1,815 Total primary government 6,828         7,406            7,616            7,904 Changes in Net Position
Governmental activities 864 1,619 6,768 3,159
Business‐type activities            (895) (119)              260               1,040 Total primary government 745 $          724 $            7,028 $        4,199 $ Source: City Finance Department
134
2017 2018 2019 2020 2021 2022
1,035 1,084           1,075           1,157           1,152           1,214 1,785 2,414           1,728           2,743           3,127           3,427 2,619 2,149           2,640           2,204           3,322           3,445 ‐ ‐                    ‐                    590              626              654 719 674              762              185              185              198 (110) (23)             66                 107              112              ‐ ‐ ‐                    195              228              (124)             (8) 61 151                 8                   24                 266              28 ‐ (507)                    ‐                    ‐                    ‐                    ‐ (898) (2,003)             (1,029)          (1,573)          (901)             (1,939) ‐ ‐                    ‐                    ‐                    ‐                    ‐ 5,210 3,940           5,445           5,665           7,765           7,018 236 234              249              236              263              269 915 881              879              945              1,100           1,211 98 56                 168              178              115              104 272 1,242              77                 95                 ‐                    50 898 2,003              1,029           1,573           901              1,939 2,420 4,416           2,402           3,027           2,379           3,573 7,630 8,356           7,847           8,692           10,144         10,592 (1,267) 2,652 1,628 (1,226) 1,495 622
2,578 3,774           2,472           8,611           4,097           3,055 $        5,230 2,507 $        4,100 $        7,385 $        5,592 $        3,676 $ (concluded)
135
2013 2014 2015 2016 2017
General Fund:

Nonspendable 248 $ 185 $ 205 $ $              4 66 $
Committed                     2,135 ‐
Unassigned 4,007 4,434 4,553               968 790
Total general fund 4,619 4,255 4,758               3,107 856 All Other Governmental Funds:

Restricted 4,590 4,598 2,914            2,530 3,536
Assigned - - 1,322            1,472 1,116
Unassigned (deficit) (299) (1,441) (1,157)              731 (331) Total all other governmental funds 3,157 4,291 3,079            4,733 4,321 Total all governmental funds $ 7,776 8,546 $ 7,837 $ $         7,839 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
12,000
14,000
2013 2014 2015 2016 2017 2018
General Fund All Other Governmental Funds:
136
2018 2019 2020 2021 2022
$              9 94 $                 3 $                 7 $                 12 $ 1,682 1,694            2,160            2,679            2,679 1,451 1,172            529               1,498            2,401 3,142 2,959            2,692            4,184            5,092 1,267 3,758            1,922            2,947            6,078 3,005 1,292            1,426            814               1,790 (16) (470)                (284)              (248)              (144) 4,256 4,580            3,064            3,513            7,724 $         7,398 7,539 $         5,756 $         7,697 $         12,816 $ 2019 2020 2021 2022
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: 2013 2014 2015 2016 2017
Taxes and assessments $              5,810 5,579 $              4,949 $              5,067 $              6,486 $ Intergovernmental                 2,946 1,897                 7,463                 5,219                 1,847 Charges for services                 2,907 2,564                 457                    242                    203 Fines, forfeitures and penalties                      28 23                      178                    162                    211 Licenses and permits                    234 260                    254                    273                    97 Use of money and property                    84 103                      120                    174                    55 Unrealized gains and losses                         ‐ ‐                         ‐                         ‐                         ‐ Reimbursements                         ‐ ‐                         2,930                 3,413                 2,345 Other                      240 80                    59                      127                    210 Total revenues               12,249 10,506               16,410               14,677               11,454 Expenditures:

Current:

General government                 1,549 2,179                 2,875                 2,685                 2,548 Public safety                 3,829 3,410                 3,581                 4,100                 4,233 Public works                 1,594 1,472                 3,469                 1,874                 1,902 Community development                 3,460 2,191                 834                    1,693                 1,011 Marketing and promotions                         ‐ ‐                         ‐                         ‐                         ‐ Cost allocations                         ‐ ‐                         ‐                         ‐                         ‐ Capital outlay 874                    2,431                 5,058                 1,725                 1,992 Debt Service:

Principal Retirement 107                    112                    116                    120                    127 Interest and fiscal charges 40                      36                      31                      26                      21 Total expenditures               13,011 10,273               15,964               12,223               11,834 Reconciliation of Governmental Revenues
Less Expenditures to Fund Equity:

Revenues over (under) expenditures 233 $                 $                446 (762) $                 2,454 $              (380) $ Other financing sources (uses):

Proceeds from sales of assets ‐                         ‐                         ‐                         ‐                         ‐ Extraordinary loss on dissolution of redevelopment ‐                         ‐                         ‐                         ‐                         ‐ Transfers in 1,950                 1,091                 5,683                 2,714                 3,775 Transfers out (1,966)                (1                (6,069) ,099)                (3                (5,266) ,292) Total other financing sources (uses) (16)                     (8)                       (386)                   (                   (1,491) 578) Net change in fund balances 217 $                 $                60 (770) $                   1,876 $              (1,871) $ Debt service as a percentage of noncapital expenditures 1.56% 1.40% 1.35% 1.39% 1.50% Source: City Finance Department
$(2,000)
$(1,500)
$(1,000)
$(500)
$‐
$500
$1,000
$1,500
$2,000
2013 2014 2015 2016 2017 2018
Net change in fund balances $217 $(770) $60 $1,876 $(1,871) $(300) CHANGE IN FUND BALANCE ‐ GOVERNMENTAL FUNDS
138
2018 2019 2020 2021 2022
$              7,138 7,131 $              6,878 $              8,412 $              8,937 $ 772 4,592                    2,702                 5,883                 4,487 128 139                    61                      47                      65 118 84                    112                    103                    146 128 132                    97                      92                      86 213 126                    409                    13                      (34) 195 ‐                    ‐                         ‐                         ‐ 2,453 2,691                 2,335                 2,247                 3,278 37 82                      22                      264                    23 11,182 14,976               12,616               17,061               16,989 2,522 2,881                 2,094                 2,256                 3,319 4,189 4,383                 5,029                 4,094                 4,507 1,968 1,947                 1,901                 1,847                 1,966 1,050 1,201                 846                    4,368                 1,134 ‐ ‐                         186                    93                      227 ‐ ‐                         475                    478                    789 282 3,780                    1,975                 415                    1,504 169 169                    180                    38                      ‐ 17 17                      5                         ‐                         358 10,197 14,378               12,691               13,589               13,806 $                 985 598 $                 (75) $                  3,472 $              3,184 $ ‐ ‐                         6                         9                         16 ‐ ‐                         ‐                         ‐                         ‐ 2,830 2,944                 616                    866                    1,788 (3,957) (3,843)                (2,190)                (2,403)                (3,727) (1,127) (898)                (1,568)                (1,528)                (1,924) $                (142) (300) $                (1,643) $            1,944 $              1,260 $

1.75% 1.88% 1.73% 0.29% 2.91%
2019 2020 2021 2022
$(142) $(1,643) $1,944 $1,260
139
(In Thousands)
Fiscal
Year
Ended Sales & Transient Other
June 30, Property (1) Use Tax Occupancy Tax Taxes Total 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 6,879
2022 1,214 3,427 3,445 852 8,937
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
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
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 Boatyard Tobacco Miscellaneous Retail Canclini TV & Appliance Furniture/Appliance Canclini TV & Appliance Furniture/Appliance Chevron Service Stations Service Stations Chevron Service Stations Service Stations Coast to Coast Hardware Bldg.Matls‐Retail CVS Pharmacy Drug Stores CVS Pharmacy Drug Stores
Denny's Restaurants Restaurants Denny's Restaurant Restaurants Dollar Tree Stores Department Stores Fort Bragg Feed & Pet Miscellaneous Retail Geo Aggregates Bldg.Matls‐Whsle Harvest Market Food Markets Harvest Market Food Markets Kemppe Liquid Gas Energy Sales Kemppe Liquid Gas Energy Sales Mcdonald's Restaurants Restaurants Mcdonald's Restaurants Restaurants Mendo Mill & Lumber Company Bldg.Matls‐Retail Mendo Mill & Lumber Company Bldg.Matls‐Retail Mendocino Coast Petroleum Energy Sales Noyo Harbor Inn Restaurants Mendocino County Hydrogarden Florist/Nursery O'Reilly Auto Parts Auto Parts/Repair O'Reilly Auto Parts Auto Parts/Repair Redwood Coast Fuels Energy Sales Rhoads Auto Parts Auto Parts/Repair Restaurante Los Gallitos Restaurants Rite Aid Drug Stores Drug Stores Rino Service Stations Service Stations Rossi's Building Materials Bldg.Matls‐Retail Rite Aid Drug Stores Drug Stores Safeway Stores Food Markets Rossi Building Materials Bldg.Matls‐Retail Sears Hometown Stores Furniture/Appliance Safeway Stores Food Markets Speedex Service Station Service Stations Sinclair Service Stations Service Stations Sport Chrysler Jeep Dodge Auto Sales ‐ New Sport Chrysler‐Jeep‐Dodge Auto Sales ‐ New The Brewery Shop Restaurants Taco Bell Restaurants Two Short Sales Bldg.Matls‐Whsle
The Brewery Shop Restaurants Union 76 Service Stations Service Stations True Value Hardware Bldg.Matls‐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
2021‐22 2012‐13
141
CDTFA NAICS SECTOR 2022Q1 2021Q1 2020Q1 2019Q1
Accommodation and Food Services 309,030 219,572 261,579 270,483 Agriculture, Forestry, Fishing and Hunting 9,847 6,929 11,023 9,978 Arts, Entertainment, and Recreation 8,183 189 5,903 5,394 Educational Services 617 866 1,331 2,082
Information 12,475 7,167 7,675 9,327
Manufacturing 4,092 5,144 8,677 8,236
Mining, Quarrying, and Oil and Gas Extraction 92,471 68,020 82,665 86,275 Other Services (except Public Administration) 31,829 27,773 31,619 31,125 Professional, Scientific, and Technical Services 4,799 4,443 5,929 5,892 Real Estate and Rental and Leasing 3,276 4,114 2,239 2,712 Retail Trade 1,180,435 1,044,381 1,051,144 1,044,560
Utilities 55,570 45,615 52,631 56,094
All Other NAICS Sectors 27,830 23,324 21,707 21,418
TOTAL 1,740,455 1,457,538 1,544,122 1,553,576
Source:  MuniServices, LLC / Avenu Insights & Analytics Historical Sales Tax Amounts by Benchmark Year
Last Ten Fiscal Years
City of Fort Bragg, California
142
2018Q1 2017Q1 2016Q1 2015Q1 2014Q1 2013Q1
282,205 261,139 233,034 218,376 201,158 200,023
3,547 7,404 11,516 6,866 2,625 2,972
3,516 3,469 3,454 4,002 4,407 3,829
7,876 7,499 8,318 6,932 7,927 3,006
5,569 4,825 4,031 6,163 7,182 7,828
7,106 6,312 4,704 4,951 4,444 6,102
73,796 56,363 62,526 80,000 113,954 112,609
30,343 31,197 31,897 31,049 27,496 27,573
7,944 7,989 8,627 8,693 7,599 7,836
2,455 2,525 2,525 2,944 2,893 3,394
1,055,670 987,423 990,177 983,868 980,587 989,808
39,654 39,438 40,014 37,326 32,788 30,289
21,025 18,791 18,414 8,834 5,016 4,953
1,540,707 1,434,374 1,419,237 1,400,004 1,398,075 1,400,221 143
(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)
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 2021‐22 720,807 $                 32,899 $                       753,706 $             3.4% 1.137000 886,049 1.175590 (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 $‐
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
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 2020‐21 2021‐22 Residential 347,694 351,259 357,224 369,852 393,470 375,474 395,888 410,229 428,620 448,738 Commercial 164,165 165,103 163,032 167,141 150,666 153,767 156,832 160,042 163,238 164,973 Industrial 30,593 36,342 36,807 37,595 37,908 38,037 39,021 40,900 39,219 35,200 Miscellaneous 689 698 701 735 1,120 31,285 31,187 33,043 33,941 22,866 Vacant 21,552 18,931 18,682 18,963 21,162 21,817 23,423 24,116 22,554 19,854 Professional 0 0 0 179 9,804 19,769 20,036 20,413 20,817 18,946 Institution 3,931 4,024 4,285 4,513 4,515 3,761 2,691 3,926 4,429 4,031 Recreation 9,119 7,905 7,593 6,391 7,101 2,676 2,613 2,719 2,762 3,740 Agriculture 34 33 34 34 34 0 0 0 0 2,460
Unitary 543 542 543 543 340 0 0 0 0 0
Unknown 1,130 1,149 1,178 1,192 0000 00
Net Secured Value 230,626 233,578 590,079 607,137 626,121 646,586 671,692 695,389 715,581 720,807 Unsecured 31,513 29,641 31,347 31,275 32,889 32,288 31,556 33,240 33,149 32,899 Net Taxable Value 262,139 263,219 621,426 638,412 659,009 678,874 703,249 728,629 748,730 753,706 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,
448,738 Commercial,
164,973
Industrial, 35,200
Miscellaneous,
22,866
Vacant, 19,854
Professional,
18,946
Institution, 4,031
Recreation,
3,740
Agriculture, 2,460
2021‐22 Assessed Value
145
Direct and Overlapping Property Tax Rates
2012‐13 2013‐14 2014‐15 2015‐16 2016‐17
COUNTY GENERAL FUND 0.745000 0.745000 0.745000 0.745000 0.745000 CITY OF FORT BRAGG 0.255000 0.255000 0.255000 0.255000 0.255000 TOTAL 1.000000 1.000000 1.000000 1.000000 1.000000
Override Assessments
LOCAL SPECIAL DISTRICSTS 0.012000 0.011000 0.026000 0.025000 0.018000 SCHOOLS 0.119000 0.114000 0.101000 0.107000 0.115000
TOTAL 0.131000 0.125000 0.127000 0.132000 0.133000
TOTAL TAX RATE 1.131000 1.125000 1.127000 1.132000 1.133000 Source:  Mendocino County Auditor/Controller data, MuniServices, LLC / Avenu Insights & Analytics TRA 001‐001 is represented for this report
Rates are not adjusted for ERAF
Last Ten Fiscal Years
City of Fort Bragg
146
2017‐18 2018‐19 2019‐20 2020‐21 2021‐22

0.745000 0.745000 0.745000 0.745000 0.745000

0.255000 0.255000 0.255000 0.255000 0.255000

1.000000 1.000000 1.000000 1.000000 1.000000

0.026000 0.024000 0.024000 0.023000 0.023000

0.107000 0.114000 0.107000 0.101000 0.114000

0.133000 0.138000 0.131000 0.124000 0.137000

1.133000 1.138000 1.131000 1.124000 1.137000
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
(%)
Rap Investors Lp 11,843,301            1.57% 8,284,562           1.36% Boatyard Associates Phase 10,775,144            1.43% 9,287,877           1.52% Safeway Inc 7,245,159              0.96% 7,143,415           1.17% Colombi Jeanette Succttee 5,221,623              0.69% 4,834,956 0.79% Hurst Jason S Ttee 5,037,971              0.67% 4,412,754           0.72% Georgia Pacific Corporation 4,778,965              0.63% 25,132,882 4.11% Tanti Family Ii Llc 4,774,830              0.63%
Kao Kuami 4,750,608              0.63% 4,135,783 0.68%
Ansari Ghulam Murtaza & Te 4,717,607              0.63% Kashi Keshav Investments L 4,640,047              0.62% 4,165,017 0.68% Grosvenor Van Ness Associa 4,412,736              0.59% 3,805,392           0.62% Longs Drug Stores Californ 4,096,114              0.54% 3,816,173           0.62% Ray Ronald R Ttee 4,065,101              0.54%
Fort Bragg Hotel Llc 3,747,141              0.50%
Snb Govind Corporation 3,412,886              0.45%
Fort Bragg Investments Llc 3,262,530              0.43% Mendocino Railway 3,141,922              0.42%
Noyo Harbor Inn Llc 3,002,229              0.40%
Moura Senior Housing 2,868,570              0.38% 3,333,408           0.55% Rbj & Associates Llc 2,792,955              0.37% 2,483,104           0.41% Kemppe Liquid Gas Corporat 2,727,353              0.36% 2,427,248           0.40% Taubold Timothy E Ttee 2,722,713              0.36%
Miller Helen Ttee 2,706,046              0.36% 2,409,977 0.39% Communities Moving Forward 2,673,967              0.35% I Lodge Properties Group L 2,606,158              0.35% Tradewinds Lodge 7,330,660           1.20%
Feil Scott E Diana E 5,955,220           0.97%
Comcast 3,880,723           0.64%
Affinito Dominic J Juliette C 3,547,598           0.58% North Otown Industrial Center 3,503,576           0.57% Braxton Senior Living Property 3,418,263           0.56% North Coast Brewery 3,151,272           0.52%
Anderson Logging Inc. 3,076,905           0.50%
Keaton Richard J Julie 2,948,159           0.48%
Noyo Vista Inc. 2,903,543           0.48%
De Lage Landen Operational Ser 2,529,981           0.41% Total Top 25 Taxpayers 112,023,676 14.86% 127,918,448 20.94% Total Taxable Value 753,705,828 100.00% 610,963,006 100.00% Source:  Mendocino County Assessor data, MuniServices, LLC / Avenu Insights & Analytics 2021‐22* 2012‐13
148
Fiscal
Year Taxes Levied
Ended for the Percentage
June 30, Fiscal Year Amount of Levy
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
2021 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
2012 2013 2014 2015 2016 2017 2018
Taxes Levied Taxes Collected
149
Fiscal
Year Lease Total
Ended Certificates of Revenue Governmental Certificates of Notes Capital June 30, Participation Bond Activities Participation Payable Leases 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 -
2022 11,399 - 11,399 5,392 423 -
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
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)
$ 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
17,214 5,815 7.6% 2,407
151
Legal Debt Margin Information
2013 2014 2015 2016
Assessed Value 579,450 $ 585,992 $ 590,079 $ 607,137 $
Conversion Percentage 25% 25% 25% 25%
Adjusted Assessed Value 144,863 146,498 147,520 151,784 Debt Limit Percentage 15% 15% 15% 15%
Debt limit 21,729 21,975 22,128 22,768
Total net debt applicable to limit - - - -
Legal debt margin 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%
Source: City Finance Department
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 2022
$ 646,586 626,121 $ 671,692 $ 695,389 $ 715,581 $ 720,807 $ 25% 25% 25% 25% 25% 25%
161,647 156,530 147,520 173,847 178,895 180,202
15% 15% 15% 15% 15% 15%
24,247 23,480 22,128 26,077 26,834 27,030
- - - - 11,440
$ 24,247 23,480 $ 22,128 $ 26,077 $ 26,834 $ 15,590 $
0% 0% 0% 0% 0% 73%
153
2021-22 Assessed Valuation: $ 759,543,386
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2022 % Applicable (1) Debt 6/30/2022 Redwoods Joint Community College District $ 22,115,000 3.608% 797,909 $ Fort Bragg Unified School District 38,821,009 37.301% 14,480,625 Mendocino Coast Hospital District 4,002,424 20.458% 818,816 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 16,097,350 $
OVERLAPPING GENERAL FUND DEBT:

Mendocino County Certificates of Participation 13,430,000 5.860% 786,998 $ Mendocino County Pension Obligation Bonds 33,915,000 5.860% 1,987,419 City of Fort Bragg General Fund Obligations 11,440,000 100.000% 11,440,000 TOTAL OVERLAPPING GENERAL FUND DEBT 14,214,417 $
OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 100.000% 3,015,000 3,015,000 DIRECT DEBT $ 11,440,000
TOTAL OVERLAPPING DEBT $ 21,886,767
COMBINED TOTAL DEBT $ 33,326,767 (2)
Ratios to 2021-22 Assessed Valuation:

Direct Debt 2.12%
Total Overlapping Tax and Assessment Debt 1.51%
Combined Total Debt 4.39%
Ratios to Redevelopment Successor Agency Incremental Valuation ($214,357,696):

Total Overlapping Tax Increment Debt 1.41%
Source: Avenu Insights & Analytics
California Municipal Statistics, Inc.

City of Fort Bragg, California
Direct and Overlapping Debt
Current Year
June 30, 2022
(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
This page intentionally left blank.
155
Fiscal
Year Less: Net Total
Ended Revenues Operating Available Debt
June 30, & Transfers Expenses
1 Revenue Principal Interest Service Coverage
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
2022 2,256 3,033 777 418 55 473 1.6
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
$ 2,733 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
3,015 3,584 569 87 98 185 3.1
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%
2021‐22 7,153 227,323 31,780 43.0 1,756 2.3%
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
$20,000
$25,000
$30,000
$35,000 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 294 10.54% 296 8.78%
Fort Bragg Unified School District* 263 9.43% 268 7.95% Parents & Friends Inc 152 5.45%
Safeway 131 4.70% 120 3.56%
Mendocino Coast Clinics Inc 122 4.37% 110 3.26%
Mendocino County** 110 3.94% 51 1.51%
North Coast Brewing CO Inc (1) 97 3.48% 106 3.15%
Anderson Logging Inc 81 2.90% 87 2.58%
Sherwood Oaks Health Center 79 2.83% 100 2.97%
Silver At The Wharf (Anchor Lodge) 70 2.51%
Fort Bragg Recreation Center 68 2.02%
City of Fort Bragg 60 1.78%
Total Top Employers 1,399 50.14% 1,266 37.57%
Total City Employment (2) 2,790 3,370
Source: 2013, 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
2022 2013
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 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 General Government
Administrative Services 6.00 6.00 6.00 6.50 6.50 7.00 7.00 6.50 6.00 6.00 Finance 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 Public Safety
Police 22.00 21.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 Community Services
Community Development 4.30 3.80 4.00 4.30 4.50 4.80 4.80 4.30 4.00 4.00 Public works 13.60 12.60 12.60 12.80 12.80 14.00 14.00 12.80 13.00 13.00 Enterprise Funds 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 7.00 7.00 Total 55.40 57.90 56.60 57.60 57.80 59.80 59.80 57.60 57.00 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 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Building Permits Issued 125 272 192 141 122 162 194 141 99 146 New Construction 27 2 7 6 4 9 12 N/A 88
Single Family Residential 000 2 0 5 4266
Second Unit 1 1 1344 8388
Mixed Use, Commercial & Residential 002 1 0 0 4100
Multi-Family Residential 010 0 0 0 2011
Low Income Residential 004 0 0 0 0011
City Clerk
Council/Agency Resolutions Passed 87 93 127 98 122 121 92 98 134 148 Number of Ordinances Passed 2 4 3 5 6 8 9 5 6 13
Number of Contracts Approved 31 29 30 69 74 105 71 69 45 97 Number of PRA Requests Processed 26 35 74 73 79 146 145 N/A 294 280 Public Safety
Traffic Accidents 163 174 172 221 160 145 147 221 146 122 Traffic Violations - DUI 62 45 26 28 45 49 40 28 26 48
Bookings 744 689 737 668 619 795 625 668 523 162
Moving Cites 1,001 1,614 949 498 344 428 368 498 429 122 Parking Cites 355 833 484 835 842 941 869 835 416 416
Field Interviews and Information Cases 1,450 2,211 1,301 1,217 1,403 1,936 1,289 1,217 4,065 3,191 Crime Reports 1,610 1,576 1,317 1,501 1,496 1,554 1,262 1,501 1,193 1,098 Fire 1
Total Number of Calls 500 525 617 579 665 626 752 579 579 579 Structure Fires 29 29 21 29 38 10 37 29 29 29
Vehicle Fires 9 17 9 3 16 5 4 3 3 3
Vegetation Fires 41 25 40 31 33 23 40 31 31 31
Misc Fires (Chimney, Debris, Electronically, etc.) 24 17 17 36 18 81 80 36 36 36 Medical Aid 142 110 163 150 199 197 248 150 150 150
Rescue 11 13 10 22 16 11 7 22 22 22
Hazardous Condition/Materials Calls 73 48 41 70 75 58 73 70 70 70 Mutual Aid/Agency Assist 3 6 9 12 18 23 18 12 12 12
Traffic Accidents 88 89 98 133 98 115 100 133 133 133
Services Call 128 117 96 91 80 99 126 91 91 91
Other Calls & Incidents 4 2 113 2 74 4 19 2 2 2
Water
Number of customer accounts billed 32 33,924 33 ,300 33 ,716 33 ,671 34 ,873 33 ,146 33 ,339 33 ,671 33 ,508 ,508 Water annual demand in thousand gallons 2 2 ,255 2 ,245 189 ,044 197 ,500 210 ,600 208 ,200 1 ,015 23 ,895 23 ,055 ,055 Available supply of water in thousand gallons 2 2,574 2 ,490 2 ,398 21 ,080 21 ,300 22 ,300 20 ,400 25 ,800 25 ,877 ,877 total Customer service calls 1 1 ,439 1 ,254 1 ,177 1 ,253 1 ,253 1 ,193 1 ,488 785 ,253 785 Meter installs/removals/change outs 2 11 14 16 14 24 13 16 51 51 Meter repairs 44 1 8 1 34 5 23 1 - -
Leak investigations 3 21 6 11 34 29 61 11 36 36
Service profiles 93 52 57 65 31 63 61 65 48 48
Turn on/off 139 1,248 508 669 878 891 1 669 ,099 545 545 Manual Reads 527 513 453 416 444 126 111 416 592 592
Misc. 33 49 60 75 53 55 68 75 100 100
Wastewater
Customer service calls, wastewater 52 71 41 52 43 33 36 52 44.2 44.2 New customer sewer lines installed 2 2 3 1 4 0 2 1 1.8 1.8 Sewer mains cleaned/flushed in miles 18 14 15.5 15 17.38 16 18 15 16.688 16.688 Sewer mains and laterals repaired in number of jobs 0 8 16 11 12 9 8 11 17.5 17.5 Sewer manholes inspected 371 362 363 363 374 374 374 363 369.5 369.5 Sewer manholes installed 0 0 0000 0000
Sewer spill responses 3 7 7 5 1 1 2 5 3.4 3.4
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 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Police :

Stations 1111111111
Public works
Streets (miles) 26.4 26.4 26.4 26.4 26.4 27.2 27.2 26.4 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 725 725 725 725 725 744 744 725 725 725
Sidewalks 40 40 40 40 40 40 40 40 40 40
Water
Water treatment plant 1111111111
Water mains (miles) 30 30 30 30 30 30.5 30.5 30 30 30
Raw water transmission line (miles) 5.75 5.75 5.75 5.75 5.75 5.85 5.85 5.75 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 3344452444
Recreational/Guest Facilities 3333333333
Government Facilities 2222222222
Source: City Finance, Public Works and Planning Departments 162