Fort Bragg City Council
February 12, 2024

ANNUAL COMPREHENSIVE

FINANCIAL REPORT

FISCAL YEAR ENDED
JUNE 30, 2023

CITY OF FORT BRAGG, CALIFORNIA
www.city.fortbragg.com
i
416 N. Franklin Street, Fort Bragg, CA
95437
City of Fort Bragg, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2023
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, 2023
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  ......................................................................................... 41 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds  ................................................................................................................................ 42 Statement of Cash Flows – Proprietary Funds  ........................................................................................... 43 INTRODUCTORY SECTION
FINANCIAL SECTION
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Table of Contents
ii
Page
Fiduciary Activities:

Statement of Fiduciary Net position – Fiduciary Activities ......................................................................... 46 Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds ....................................... 47 Notes to Basic Financial Statements ......................................................................................................... 51 Required Supplementary Information:

Schedule of Changes in Net OPEB Liability and Related Ratios .................................................................. 96 Schedule of Employer Contributions ‐ OPEB .............................................................................................. 97 Schedule of Contributions – Miscellaneous Plan ........................................................................................ 98 Schedule of Contributions – Safety Plan ..................................................................................................... 99 Schedule of City’s Proportionate Share of Net Pension Liability – Miscellaneous Plan ............................................................................................................................. 100 Schedule of City’s Proportionate Share of Net Pension Liability – Safety Plan .......................................................................................................................................... 101

Other Supplemental Information:

Combining and Individual Fund Financial Statements and Schedules:

Non‐major Governmental Funds:

Combining Balance Sheet – Nonmajor Governmental Funds .................................................................. 105 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds .......................................................................... 106 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, 2023
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, 2024
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, 2023, 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, 2023, 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 2022 places the City's population at 6,983. Although it is quite small, Fort Bragg is the largest City on the coast between San Francisco and Eureka. The largest employment categories in the City include health care, public education,  local  government,  wholesale  and  retail  trade,  and  tourism.  The  mild  climate  and  picturesque coastline make Fort Bragg a popular tourist and recreational area.

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

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

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

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

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

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

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

Encumbrances  outstanding at year‐end are  reported as  committed fund  balances. 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, 2023, 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 2022/23.

Economic Conditions and Fiscal Outlook
Tourism plays a pivotal role in fueling Fort Bragg's economy. Much like the broader city economy, Fort Bragg heavily  relies  on  tourism  to  generate  revenues.  The  City's  General  Fund,  crucial  for  various  initiatives,  is predominantly funded by the Transient Occupancy Tax (TOT), commonly referred to as the bed tax and sales tax. In the fiscal year 2023, these two revenue streams collectively constitute 55% of the City's General Fund revenue. To provide context, in the pre‐pandemic fiscal year 2018/19, TOT and sales tax comprised 46% of the General Fund revenue.

In  FY  22,  General  Fund  Tax  Revenues  continued  the  strong  trends  from  the  prior  year  beating  post‐covid 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 2023. TOT  revenue  receipts declined by 10% compared to the prior quarter. Sales tax revenues for the first quarter of FY 2023/23 were also down by 2%.
$‐  $1.00  $2.00  $3.00  $4.00  $5.00  $6.00  $7.00  $8.00 10/11
12/13
14/15
16/17
18/19
20/21
22/23
Sales, Transient Occupancy & Property Taxes
(in millions)
Sales Tax TOT Property Tax
x
Inflation
The U.S. economy continued to experience moderate inflation in December 2023, providing the Federal Reserve with  grounds  to  consider  the  timing  and  pace  of  interest  rate  reductions  later  in  2024.  According  to  the Commerce  Department's  report  on  Friday,  the  Fed's  preferred  inflation  gauge,  the  personal  consumption expenditures price index, increased by 2.6% in December compared to the previous year. This is notably lower than the 5.4% rise recorded at the end of 2022. Core prices, which exclude the impact of volatile food and energy costs, saw a year‐over‐year increase of 2.9%, representing the smallest rise since March 2021. In December, the annualized rates for core inflation over three and six months were 1.5% and 1.9%, respectively.

Investors are anticipating a spring rate cut by the Fed, partly due to the faster‐than‐expected decline in inflation.

While some Fed officials express concerns about potential rate hikes in case of a reacceleration of inflation, Evans acknowledged investors' nervousness, understanding their caution in navigating the delicate balance of monetary policy.

Unemployment
In December, the U.S. job market defied expectations, adding 216,000 jobs and concluding a year of consistent growth  despite  concerns about a slowing economy. The monthly gain exceeded November's and  surpassed expectations.  Throughout  2023,  a  total  of  2.7  million  jobs  were  added,  a  slowdown  from  2022  but  an improvement from pre‐pandemic levels. Wages experienced a robust 4.1% increase from the previous year, and the unemployment rate held steady at 3.7% in December. Although there was a slight uptick in the jobless rate later in the year, it started in 2023 at 3.4%, reaching lows not seen since the late 1960s. xi
Despite signs of a cooling economy, the labor
market  maintained  a  consistent  but
decelerating  pace  in  2023.  A  notable
slowdown  in  inflation  has  fueled  optimism
about  achieving  a  "soft  landing"  without
entering  a  recession.  Fueled  by  the  Fed's
interest  rate  hikes,  the job market  remained
resilient.  Strong  consumer  spending  and  an
increase  in  available  workers  supported  the
economy,  allowing  hiring  to  continue.

However,  there  are  signs  of  cooling,  with
revised job figures for October and November
showing  fewer  additions  than  initially
estimated.  Other  data  indicates  a  decline  in
open positions at the end of 2023, and service‐industry employment contracted in December. Despite these challenges, unemployment and layoffs remain low, and vacancies are higher than in 2019, suggesting continued solid demand for workers.

Local Unemployment Rate
Until March 2020, the City experienced five years of strong employment trends and low unemployment rates.

Due  to  the  Pandemic,  unemployment  peaked  in  April  2020  at  14%  but  stabilized  through  FY  2021.  As  of December 2023, the unemployment rate for Fort Bragg had dropped to 4.2%, 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 5.1%.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Nov
Dec
Jan
Feb
Mar
Jun
Jul
Aug
Sep
Oct
Nov
Dec
June
Dec
20 20 20 20 20 20 21 21 21 21 21 21 21 21 21 21 22 22 22 22 22 22 22 22 22 22 23 23 Unemployment Rate
Fort Bragg California
xii
The  real  estate  market,  once  vibrant  with  record‐high median  home  prices  post‐pandemic  and  rapid  sales, started  to decline in December 2022. Year‐over‐year  transactions decreased in most months, and  the  trend continued. The Federal Reserve's efforts to combat inflation led to a significant rise in interest rates over the past year, impacting mortgage  rates and  further affecting property sales. Data  from  the Coastal Mendocino Association of Realtors in June 2023 revealed a decline of 47% in the median single‐family home price compared to June 2022. However, this followed seven consecutive months of year‐over‐year price drops. Homes are now spending more time on the market, with an average of 30 days in 2022‐2023 compared to 14 days in 2021‐2022.

The City continues to look at opportunities to diversify its economy. Initiatives, which began in FY 2021 and will continue into FY 2024, 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 provided 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 22 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.
0 50
100
150
200
Total Home Sales in Zip Code 95437
Home Sales

IN TENS OF
xiii
The median home price in June of 2023 in the 95437 zip code was $581,000. 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 2023 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 2023  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 2023, these reserves total $5,975,337.
 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  2023,  the  reserve  remains  funded  at $1,651,438.
 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 2023, the reserve balance is $200,000.  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 2022/21, xiv
the reserve balance remains at $489,929. In the Fiscal year 2024 Budget Development, the reserve policy was increased to 10%.

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 2023 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 2026/27.

The City's General Fund operated at a record surplus for FY 2021 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, 2022, 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  2022  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.

In FY 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 2023 and projected a small surplus of $198k. xv
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 2022, which set records for both revenue sources.

A major project for FY 2022 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, 2023, is at $5.4 million  reduced  from $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 2023. The  California  Public Employees'  Retirement  System  (CalPERS)  recognized a  record  21.3%  investment return  for  the  fiscal year ending  June  30,  2022. 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, 2023, 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 23 investing $1.6 million 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 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 eleventh year in a row that the City of Fort Bragg has achieved this prestigious award. In order  to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements.

A  Certificate  of  Achievement  is  valid  for  a  period  of  one  year  only.  We  believe  that  our  current  Annual Comprehensive  Financial  Report  meets  the  Certificate  of  Achievement  Program's  requirements  and  will  be submitted to the GFOA to determine its eligibility for another certificate. xvi
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,
Isaac Whippy
Finance Director
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Organization Chart
xvii

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

Mayor Bernie Norvell          December 2024
Vice Mayor Jason Godeke        December 2026
Councilmember Tess Albin‐Smith      December 2026
Councilmember Lindy Peters        December 2024
Councilmember Marcia Rafanan      December 2026
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
Jason Godeke
Vice ‐Mayor
CITY

MANAGER
Lindy Peters
Councilmember
Marcia Rafanan
Councilmember
Tess Albin‐Smith
Councilmember
xviii
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, 2023, 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, 2023, 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 96, the Net OPEB Liability Schedule of Contributions on page 97, the City’s Schedules of Contributions, Pensions on pages 98-99, and the Schedules of the City’s Proportionate Share of the Net Pension Liability on pages 100-101, 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, 2023
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, 2023. It should be read in conjunction with the accompanying transmittal letter and basic financial statements.

FINANCIAL HIGHLIGHTS
 The City's Net Position increased by $1.9 million (assets exceeded liabilities) to $105 million as of June 30, 2023.
 The Net position for governmental activities ended the year at $44.8 million, while the net position for business activities was $60.2 million. Of the $44.8 million in total governmental net position, a negative $3.7 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 Tax revenues declined from the prior year down 7% in Transient Occupancy Tax, 3% in Sales Tax and 1.5% in Property Taxes. Transient Occupancy Tax (TOT) recorded its best year to date in the last fiscal year at $3.4 million and Sales tax at $3.2 million.  General  Fund  expenditures  were  $14.01  million,  $2.6  million  over  budget  estimates.  The  negative variance  resulted  from  the  return  of  the  $3.5  million  lease  Revenue  Bonds  offset  by  cost  savings, particularly personnel costs, insurance, and retiree medical costs.  The City's governmental funds reported a combined fund balance of $7.5 million. Committed balances include an Operating Reserve of $1.9 million, a Recession Reserve of $489,929, and a Litigation Reserve of $200,000. The unassigned fund balance increased to $1.3 million.  The  Water  enterprise  Net  Position  increased  by  $78k,  the  Wastewater  enterprise  Net  Position decreased by $1.1 million, and the C.V. Starr Center Net Position also decreased by $399k. The most significant draw on C.V. Starr Center Net Position is the non‐cash item depreciation.  Total liabilities decreased by $4.3 million to $24.4 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, 2023
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, 2023
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, 2023, the City’s major funds are as follows:

GOVERNMENTAL FUNDS:
 General Fund
 CDBG Program Income Special Revenue
 Special Sales Tax Special Revenue
 Permanent Local Housing Special Revenue
 CDBG Super NOFA Special Revenue
 Street Resurfacing Capital Projects
For the fiscal year ended June 30, 2023, 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, 2023
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 51‐93 of this report. Required Supplementary Information follows the notes on page 96.

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 105‐123 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, 2023
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, 2023, and June 30, 2022.

Govern‐ Business‐ Govern‐ Business‐
mental type mental type
Activities Activities Total Activities Activities Total Current and other assets 19,117,548 $    12,134,791 $    31,252,339 $      17,032,985 $    15,282,144 $    32,315,129 $ Noncurrent assets 42,156,106       55,382,819       97,538,925          41,405,840       54,120,425       95,526,265 Total assets 61,273,654       67,517,610       128,791,264       58,438,825       69,402,569       127,841,394 Deferred outflows of resources 7,773,576          145,891             7,919,467            9,975,152          445,703             10,420,855 Total assets and deferred outflows of
resources 69,047,230       67,663,501       136,710,731       68,413,977       69,848,272       138,262,249 Current and other liabilities 1,796,839          1,422,873          3,219,712            1,244,934          1,366,280          2,611,214 Long‐term liabilities 16,412,188       4,844,021          21,256,209          20,378,052       5,713,620          26,091,672 Total liabilities 18,209,027       6,266,894          24,475,921          21,622,986       7,079,900          28,702,886 Deferred inflows of resources 5,984,579          1,131,938          7,116,517            5,316,962          997,206             6,314,168 Total liabilities and deferred  inflows of
resources       7,398,832 24,193,606          31,592,438          26,939,948       8,077,106          35,017,054 Net position:

Net investment in
Capital Assets 42,156,106       50,401,819       92,557,925          30,092,089       48,678,202       78,770,291 Restricted 6,754,806          108,064             6,862,870            6,078,004          108,064             6,186,068 Unrestricted (deficit) (4,057,288)        9,754,786          5,697,498            5,303,936          12,984,900       18,288,836 Total net position $    60,264,669 44,853,624 $    105,118,293 $    41,474,029 $    61,771,166 $    103,245,195 $ 2023 2022
Summary of Net Position
As of June 30, 2023, the City's net position was $105.1 million, an increase of $1.8 million. Year over year, assets increased by $949,870, and liabilities decreased by $4.3 million with the return of the $3.5 million of 2022 Lease Revenue Bonds issued in FY 2022. 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 $1.8 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, 2023
Management’s Discussion and Analysis
9 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, continued
A large portion (88%) 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 2023 by $214.1 million to a total of $92.9 million. The increase is attributed to land purchase by the water enterprise of $2.5 million, fleet replacements of $545k, 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.

The restricted net position of $6.8 million primarily comprises revenues held for expenditure for specified purposes (special revenue) and amounts held for debt service. Examples of special revenues are street sales tax and Community Development Block Grants (CDBG) program income.

The Unrestricted net position decreased by $12.6 million over the previous year and now stands at $5.7 million, a 68% decrease, with the return of $3.5 million in Lease Revenue Bonds and the use of reserves to invest in infrastructure. Governmental activities saw a decrease of $1.5 million in unrestricted net position from the return of Debt Lease Revenue Bonds‐ $3.5 million, offsetted by the $2.2 million deficit realized in the current fiscal year. Business‐type activities also saw a decrease of $3.5 million primarily for the purchase of the Property on Highway 20 by the Water Enterprise Fund. The negative unrestricted position of $4.1 million for governmental activities in FY 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 decreased by $2.4 million on a year‐over‐year basis from the return of the Lease Revenue Bond.

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 increased by $802k.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis
10 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
The change in net position for the fiscal years ended June 30, 2023, and 2022, follows:

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

Program revenues:

Charges for services 4,170,768 $                   7,204,653 $            11,375,421 $                3,908,237 $                   7,599,209 $            11,507,446 $ Grants and contributions:

Operating 6,286,672                      ‐                                6,286,672                      3,967,530                      ‐                                3,967,530 Capital 2,400,000                      ‐                                2,400,000                      186,554                         645,986                   832,540 General revenues:

Property taxes and assessments 1,208,010                      305,258                   1,513,268                      1,214,292                      268,596                   1,482,888 Sales and use tax 3,322,453                      1,175,441               4,497,894                      3,426,543                      1,211,340               4,637,883 Transient occupancy taxes 3,192,486                      ‐                                3,192,486                      3,444,990                      ‐                                3,444,990 Other taxes 953,025                         ‐                                953,025                         851,640                         ‐                                851,640 Unrestricted investment earnings (277,728)                        312,426                   34,698                           (7,606)                            104,244                   96,638 Other general 831,900                         ‐                                831,900                         387,255                         50,000                     437,255 Total revenues 22,087,586                    8,997,778               31,085,364                    17,379,435                    9,879,375               27,258,810 Expenses:

Governmental activities:

General government 2,999,433                      ‐                                2,999,433                      4,514,625                      ‐                                4,514,625 Public safety 5,646,925                      ‐                                5,646,925                      4,903,019                      ‐                                4,903,019 Public works 3,578,966                      ‐                                3,578,966                      3,551,490                      ‐                                3,551,490 Community development 5,889,971                      ‐                                5,889,971                      825,072                         ‐                                825,072 Marketing and promotion 210,230                         210,230                         226,874                         226,874 Interest and fiscal charges 532,466                         ‐                                532,466                         438,129                         ‐                                438,129 Business‐type activities:

Water ‐                                      3,034,244               3,034,244                      ‐                                      2,676,522               2,676,522 Wastewater ‐                                      4,727,326               4,727,326                      ‐                                      3,942,009               3,942,009 C.V. Starr Center ‐                                      2,592,705               2,592,705                      ‐                                      2,145,402               2,145,402 Total expenses 18,857,991                    10,354,275             29,212,266                    14,459,209                    8,763,933               23,223,142 Excess (Deficiency) of revenues over
expenditures before transfers 3,229,595                      (1,356,497)              1,873,098                      2,920,226                      1,115,442               4,035,668 Transfers 150,000                         (150,000)                 ‐                                      (1,939,278)                     1,939,278               ‐ Change in net position 3,379,595                      (1,506,497)              1,873,098                      980,948                         3,054,720               4,035,668 Net position:

Beginning of year 41,474,029                    61,771,166             103,245,195                 40,493,081                    58,716,446             99,209,527 End of year 44,853,624 $                60,264,669 $          105,118,293 $              41,474,029 $                61,771,166 $          103,245,195 $ 2023 2022
Changes in Net Position
In Fiscal Year 2023, the City's expenses amounted to $29.2 million, a $5.9 million increase from the previous fiscal year. A significant portion of this increase was due to higher spending in public safety and community development grants, totaling $5.8 million. Governmental expenses made up 71% of the total costs, amounting to $18.8 million, with public safety and community development grants being the largest components, followed by public works and general government. Business‐type activities accounted for $10.2 million, or 29% of the City's total expenses for the fiscal year.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis
11 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Revenues
The City's total revenues for Governmental and Business‐type Activities were $31.9 million for the fiscal year that ended June 30, 2023, representing a 14 percent increase over the previous fiscal year. Governmental Activities increased by $4.71 million and Business‐type Activities decreased by $881,597 or 8 percent.

Significant revenues for the City for FY 2022/22 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 2022/22:

1. Charges for Service's overall revenue increased by 2 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 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
2023 11,375 6,287 4,498 3,192 1,513
2022 11,507 4,800 4,638 3,445 1,483
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, 2023
Management’s Discussion and Analysis
12 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued

2. Grants and Contributions annual receipts for Operating Grants increased by $2.32 million (13%) due to the completion of the Parents & Friends Facility, the HEAP Grant for the DANCO Housing project, $3 million. Grants also included the Crew Grant, 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.

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 and a slow down in the economy caused a decline in this revenue category by 3%.  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%. In FY 23, TOT revenues, were down 7 % or $252,504.

5. Property Tax decreased by 2% in FY 2023 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 2023 in the 95437 zip code was $419,000, an increase of 5% over June 2022. However, the number of home sales has declined, due to high interest rates. 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, 2023
Management’s Discussion and Analysis
13 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Revenues by source for the fiscal years ended June 30, 2023, and 2022, are as follows:

Charges
for
Services
Capital
Grants
Sales &
Use Tax
Transient
Occupanc
y Tax
Operating
Grants
Property
Taxes
Other
Taxes
Interest &
other
2023 4,171 2,400 3,322 3,192 6,287 1,208 213 231
2022 3,908 187 3,427 3,445 3,968 1,214 198 20
0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
In Thousands
Revenue ‐ Governmental Activities
Charges for
Services Capital Grants Sales & Use Tax Property Taxes Interest & other 2023 7,205 0 1,175 305 312
2022 7,599 646 1,211 269 154
0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
In Thousands
Revenue ‐ Business‐type Activities
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis
14 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Expenses
The City's Governmental and Business‐type Activity expenses for FY 2023 totaled $29.2 million, representing an 25 percent increase compared to the previous fiscal year. Governmental Activity expenses were $18.8 million or 62 percent of total costs, while Business‐type Activities were $10.3 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 2022/2023:

1. Public Safety costs increased by $744k or 15 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, 2022, Police Officer wages increased by 4.9% and 1% on January 1, 2023, 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  decreased  by  $27k.  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
2023 5,647 3,579 2,999 5,890 210 530
2022 4,903 3,551 4,515 825 227 438
0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
In Thousands
Expenses ‐ Governmental Activities
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis
15 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Expenses, Continued

3. General Government expenses decreased by $1.5 million. The decrease is attributed to the section 115‐ trust payment incurred in the prior year, in addition to one‐time professional service costs and a decrease in litigation 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 increased by $5.07 million from the prior year due to the redemption of the lease revenue bonds of $3.5 million, SB‐2 Grants $46k, and Community Development Block Grants (CDBG)  for  the  Parents  and  Friends  Project,  water  meter  replacement,  code  enforcement  grant  and business assistance loan program.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
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 2023:

1. Wastewater  Enterprise  expenses  increased  by  $785k  or  19  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 increased by $206k. In FY 21/22, there was an increased amount of staff time spent on Wastewater projects.

2. C.V. Starr Center expenses increased by $262k or 12 percent. The CV Starr center was closed in mid‐ March 2022 in compliance with Shelter‐In‐Place orders in response  to COVID. The Center remained closed  through  the  fourth quarter of FY 2022. In FY 2023, personnel increased by $299k and other operating  costs  increased  compared  to  the  previous  year  when  they  were  closed.  Utilities,  mainly propane, increased by $100k to $365k, up 72 percent from pre‐covid levels.

3. Water Enterprise expenses increased by 357k or 13 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, materials and supplies including insurance increased by $198k.

Wastewater Enterprise C.V. Starr Center Water Enterprise 2023 4,727 2,593 3,034
2022 3,942 2,145 2,677
0 500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
In Thousands
Expense ‐ Business‐Type Activities
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
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, 2023, and 2022 are as follows:

Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government $        229,199 2,999,433 $          4,514,625 $        1,964,633 $ Public safety           5,093,551 5,646,925         4,903,019           4,538,021 Public works           904,924 3,578,966             3,551,490           1,217,352 Community development           (969,819) 5,889,971           825,072              (1,988,121) Marketing and promotions              210,230 210,230             226,874              226,874 Interest and fiscal charges              532,466 532,466             438,129              438,129 Total 18,857,991 $     6,000,551 $      14,459,209 $     6,396,888 $ 2023 2022
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, 2023, the City's governmental funds reported combined fund balances of $14.7 million, an increase of $1.9 million over the previous year due to PLHA Grant for the Danco construction of housing units and increases in special sales tax collected, with the return of $3.5 million in Lease Revenue Bonds.

General Fund
The general fund is the chief operating fund of the City. Overall, the general fund balance decreased by $2.6 million to $5.9 million at the end of FY 2023. The general fund unassigned balance totaled $1.6 million— a decrease of $773k resulted from a realized deficit realized at fiscal year‐end, investment into Section 115 Trust funded from prior year surplus offset by the return of $3.5 million in restricted funds. 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.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis
18 FUND FINANCIAL ANALYSIS, Continued
Special Sales Tax – Streets
In Fiscal Year 2023, the Special Sales Tax allocated for street repairs in the City decreased by $453k, resulting in a total of $2.4 million. This decrease follows the funding of the Maple Street project ($1.8 million) and the 2020 Street Rehabilitation in the previous year. The 2023 Street Rehabilitation project, with a budget of $1.87 million, is scheduled to be funded and commenced in FY 2024.

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 $1.5 million (5%). The City has three business‐type activities:  Water, Wastewater, and the C.V. Starr Center.

The Water enterprise net position increased by $78k or 1 percent to $16.7 million; the Wastewater enterprise net position decreased by $1.19 or 8 percent to $22.8 million, and the C.V. Starr Center enterprise net position also recorded a decrease of $399k or 1 percent to $20.6 million.

The Water enterprise capitalized costs of $1.98 million largely due to the Highway 20 property purchase of $2.5 million, 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 $1,111,093 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. Materials and supplies category, recorded increase from cost allocation for fleet internal service fund contributions with the purchase of the Vac Truck of $607k. 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 sufficient funds to fund 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 $399,441. 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 2023 to comply with shelter‐in‐place orders and reopened in July 2022 on a limited basis. The Center was awarded a Grant of $602,160 in FY 22 as part of the COVID relief funds for districts. Operating Revenues rebounded to $600k almost the same membership levels as pre‐ pandemic.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
Management’s Discussion and Analysis
19 FUND FINANCIAL ANALYSIS, Continued
General Fund Budgetary Highlights
The fund financial statements detail a budget‐to‐actual comparison for the City's major governmental funds, illustrating compliance with City Council‐authorized appropriations. Initially, the budget projected revenues of $10.6 million, which was later revised to $10.8 million. The fiscal year concluded with actual revenues of $11.7 million, surpassing the budget by $894k. The General Fund, heavily reliant on Transient Occupancy Tax (TOT) and Sales Tax (48% of total revenue), was significantly affected by the 2019/20 pandemic and economic shutdown. However, TOT and Sales Tax revenues rebounded in FY 20/21 and 21/22, with the latter year marking record performance despite a 7.5% decrease in TOT and a 3.2% decrease in Sales Tax from the previous year. Property tax saw a modest 1.7% increase.

Reimbursements from Enterprise Funds to the General Fund increased by $1.3 million, attributed mainly to the end‐of‐year Cost Allocation adjustment, which was based on actual staff hours. A significant portion of these hours was allocated to Water and Wastewater Enterprise projects. Additionally, the departments being fully staffed throughout the fiscal year influenced the increase.

Expenditures were above the final amended Budget of $11.4 million by $2.6 million. Expenditure across many categories recorded savings except the Public Works Corporation Yard Department of $60,703 and Cost Allocations being over budgeted by $563k.

Other significant budget savings include Public Safety, $518k, Non‐Departmental of $431k, Administrative Services of $165k
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 expense category ended the year under Budget by $431k. The expenses of CIRA liability, property premium payments and retiree medical 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. As mentioned previously the trust as set‐up with an investment of $1.6 million during the fiscal year 2023.

The City of Fort Bragg's Fund Balance and Reserve Policies, as adopted by the City Council, established an Operating Reserve of $1.98 million, representing 15‐25% of the General Fund's annual operating expenditures. This reserve aims to provide strategic financial stability, maintain liquidity, and manage economic uncertainties. The City also maintains a recession reserve of $489k (5% of the annual operating budget) and a Litigation reserve at $200k.

The fiscal year saw a return of $3.5 million in Restricted Funds from the 2022 Lease Revenue Bonds.

Consequently, the General Fund's year‐end balance was $5.98 million, reflecting a $1.5 million decrease, offset by the bond return and an increase in revenues of $893k.

City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2023
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, 2023, amounts to $97.5 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:
2023 2022 2023 2022 2023 2022
Land 12,952,262 $       12,952,262 $       3,210,698 $         785,079 $            16,162,960 $       13,737,341 $ Construction in progress 1,639,441            214,292                4,228,017            3,623,852            5,867,458            3,838,144 Buildings 1,061,019            1,130,844            19,165,605          19,725,930          20,226,624          20,856,774 Machinery, equipment and vehicle            1,420,794 1,536,778            1,791,818            2,008,476            3,328,596            3,429,270 Infrastructure 24,966,606          25,687,648          26,986,681          27,860,326          51,953,287          53,547,974 Land improvements ‐                             ‐                             ‐                             ‐                             ‐                             ‐ Total 42,156,106 $       41,405,840 $       55,382,819 $       54,003,663 $       97,538,925 $       95,409,503 $ Governmental Activities Totals Business‐type Activities The City's capital assets experienced a net increase of $2.1 million after accounting for annual depreciation.

This includes a decrease in Infrastructure Improvements by $1.6 million, attributable to depreciation and asset retirements. The total value of assets disposed from the wastewater fund was $53,489. The total value of Citywide assets placed in service was $4.4 million, which is offset by $971k in depreciation expenses.

Additionally, the Water Enterprise's acquisition of Highway 20 land amounted to $2.5 million, along with ongoing Streets Rehab construction. For more comprehensive details on capital assets and related activities, refer to the Summary of Significant Accounting Policies on page 57 and Note 5 on page 70 in the Capital Assets section of the financial statements.

Debt Administration
As of June 30, 2023, the City's total outstanding debt was $13.6 million, a decrease from $18 million in the previous year. This reduction includes a $3.4 million decrease in governmental debt. In October 2022, the City issued Lease Revenue Bonds, utilizing $3.5 million for rehabilitating certain city properties, with this amount returned in the fiscal year 2023. The remaining $7.5 million from these bonds was allocated to reduce the Unfunded Liability as projected by CALPERS.

Business‐type debt also decreased by $834k to $4.9 million, mainly due to the Water Enterprise paying off the SDWRL loan. Detailed information on the City's outstanding debt and long‐term liabilities can be found in Note 7, pages 72‐75, of the financial statements.

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, 2023
Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments $ 11,059,372 12,184,149 $ 23,243,521 $ Restricted cash and investments 108,064 1,651,438 1,759,502 Receivables:

Accounts 873,453 2,637,478 3,510,931
Loans/Notes receivable - 2,628,240 2,628,240
Inventory 93,902 - 93,902
Prepaid items - 16,243 16,243
Total current assets 12,134,791 19,117,548 31,252,339
Capital assets:

Nondepreciable 14,591,703 7,438,715 22,030,418
Depreciable 47,944,104 27,564,403 75,508,507
Total noncurrent assets 55,382,819 42,156,106 97,538,925 Total assets 67,517,610 61,273,654 128,791,264

DEFERRED OUTFLOWS OF RESOURCES
Pension plan 115,856 7,070,674 7,186,530
OPEB, deferred outflow - 702,902 702,902
Deferred loss on debt refunding 30,035 - 30,035
Total deferred outflows of resources 145,891 7,773,576 7,919,467 Total assets and deferred outflows $ 67,663,501 69,047,230 $ 136,710,731 $

LIABILITIES
Accounts payable and accrued liabilities 811,138 1,341,510 2,152,648 Interest payable 10,394 171,568 181,962
Unearned revenue 13,844 - 13,844
Deposits payable 153,656 31,574 185,230
Compensated absences - current portion 8,841 57,187 66,028 Due within one year 425,000 195,000 620,000
Total current liabilities 1,422,873 1,796,839 3,219,712 Long-term liabilities:

Compensated absences 507,406 109,583 616,989
Landfill post-closure - 124,500 124,500
Due after one year 4,556,000 7,780,626 12,336,626
Net OPEB obligation 2,714,088 - 2,714,088
Net pension liability 178,438 5,285,568 5,464,006
Total noncurrent liabilities 4,844,021 16,412,188 21,256,209 Total liabilities 6,266,894 18,209,027 24,475,921

DEFERRED INFLOWS OF RESOURCES
Pension plan 1,131,938 5,949,922 7,081,860
OPEB - 34,657 34,657
Total deferred inflows of resources 1,131,938 5,984,579 7,116,517 Total liabilities and deferred inflows 7,398,832 24,193,606 31,592,438

NET POSITION
Net investment in capital assets 50,401,819 42,156,106 92,557,925 Restricted for:

Gas Tax - 540 540
State and Federal Grants - 1,919,816 1,919,816
Special Sales Tax - 2,479,302 2,479,302
Asset Forfeiture - 703,710 703,710
Debt Service 108,064 1,651,438 1,759,502
Unrestricted 9,754,786 (4,057,288) 5,697,498
Total net position 60,264,669 44,853,624 105,118,293
Total liabilities, deferred inflows and net position $ 67,663,501 69,047,230 $ 136,710,731 $ 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, 2023
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary government:

Governmental activities:

General government $ 1,873,666 2,999,433 $ 896,568 $ - $ Public safety 308,628 244,746 - 5,646,925
Public works 1,800,900 873,142 - 3,578,966
Community development 187,574 5,889,971 4,272,216 2,400,000 Marketing and promotions - 210,230 - -
Interest and fiscal charges - 532,466 - -
Total governmental activities 18,857,991 4,170,768 6,286,672 2,400,000 Business-type activities:

Water 3,043,241 3,034,244 - -
Wastewater 3,522,383 4,727,326 - -
CV Starr Center 639,029 2,592,705 - -
Total business-type activities 10,354,275 7,204,653 - - Total primary government $ 11,375,421 29,212,266 $ 6,286,672 $ 2,400,000 $ 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
Total general revenues
Transfers
Total general revenues and transfers
Change in net position
Net position:

Beginning of year
End of year
Program Revenues
The accompanying notes are an integral part of these basic financial statements. 24 Governmental Business-Type
Activities Activities Totals
$ - (229,199) $ (229,199) $
- (5,093,551) (5,093,551)
- (904,924) (904,924)
- 969,819 969,819
- (210,230) (210,230)
- (532,466) (532,466)
- (6,000,551) (6,000,551)
8,997 - 8,997
(1,204,943) - (1,204,943)
(1,953,676) - (1,953,676)
(3,149,622) - (3,149,622)
(3,149,622) (6,000,551) (9,150,173)
1,208,010 305,258 1,513,268
3,322,453 1,175,441 4,497,894
3,192,486 - 3,192,486
740,424 - 740,424
212,601 - 212,601
312,426 (277,728) 34,698
- 831,900 831,900
1,793,125 9,230,146 11,023,271
(150,000) 150,000 -
1,643,125 9,380,146 11,023,271
(1,506,497) 3,379,595 1,873,098
61,771,166 41,474,029 103,245,195
$ 60,264,669 44,853,624 $ 105,118,293 $
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
Special Sales Tax - Street Repair Special
Revenue
Permanent Local Housing Special Revenue
CDBG Super NOFA Special Revenue
Street Resurfacing Capital Projects

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

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

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

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.

Accounts for the City’s Special Sales Tax for Street and Alley Repairs.

Provides funding to local governments in California for housingrelated projects and programs that assist in addressing the unmet housing needs of their local communities. The City Council of Fort Bragg approved a resolution in 2021 to authorize the application for PLHA program to support the DANCO project.

The City received $2.4 million for this purpose, of which $2.28 million is allocated as a loan for the project, while the remaining funds cover the city's administrative expenses.
27 City of Fort Bragg, California
Balance Sheet
Governmental Funds
June 30, 2023
CDBG Special
General Program Income Sales Tax
Fund Special Revenue Special Revenue
ASSETS
Cash and investments $ 51,810 2,870,799 $ 2,269,419 $
Restricted cash and investments 1,651,438 - -
Receivables:

Taxes 1,227 - -
Intergovernmental - - 209,883
Loans/Notes receivable 1,885,050 - -
Other receivable 1,597,537 - -
Due from other funds 384,191 - -
Prepaid items 16,243 - -
Total assets $ 1,936,860 6,521,435 $ 2,479,302 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 514,524 $ - $ - $ Due to other funds - - -
Deposits payable 31,574 - -
Total liabilities - 546,098 -
Deferred inflows of resources:

Unavailable revenue - 1,818,164 -
Total deferred inflows of resources: 1,818,164 - -
Total Liabilities and deferred inflows 1,818,164 546,098 - Fund balances:

Nonspendable
Prepaids 16,243 - -
Restricted 1,651,438 - 2,479,302
Committed:

Operating reserve 1,989,419 - -
Recession reserve 489,929 - -
Litigation reserve 200,000 - -
Assigned 118,696 - -
Unassigned (deficit) 1,628,308 - -
Total fund balances 118,696 5,975,337 2,479,302
Total liabilities, deferred inflows and fund balances $ 1,936,860 6,521,435 $ 2,479,302 $ Major Funds
The accompanying notes are an integral part of these basic financial statements. 28 Permanent CDBG Street Nonmajor
Local Housing Super NOFA Resurfacing Governmental
Special Revenue Special Revenue Capital Projects Funds Totals $ 11,554 2,397,275 $ - $ 3,457,255 $ 11,058,112 $
- - - - 1,651,438
- - - - 1,227
- - - 797,813 1,007,696
- - - 743,190 2,628,240
- - - 31,018 1,628,555
- - - - 384,191
- - - - 16,243
$ 11,554 2,397,275 $ - $ 5,029,276 $ 18,375,702 $
$ 152,472 - $ - $ 217,944 $ 884,940 $
80,616 - 303,575 384,191
- - - - 31,574
152,472 - 80,616 521,519 1,300,705
- - 521,782 2,339,946
- - - 521,782 2,339,946
152,472 - 80,616 1,043,301 3,640,651
- - - - 16,243
- - - 2,624,066 6,754,806
- - - 1,989,419
- - - 489,929
- - - 200,000
- 2,397,275 - 1,432,419 3,948,390
(140,918) (80,616) - (70,510) 1,336,264
(140,918) 2,397,275 (80,616) 3,985,975 14,735,051
$ 11,554 2,397,275 $ - $ 5,029,276 $ 18,375,702 $
Major Funds
29 City of Fort Bragg, California
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2023
Total fund balances - total governmental funds $ 14,735,051 39,978,770
Compensated absences (564,593) $
Lease payable (7,780,626)
Landfill post-closure (124,500)
Net OPEB obligation (2,714,088)
Net pension liability (5,285,568) (16,469,375)
2,339,946
(171,568)
Deferred outflows, Pension 7,070,674
Deferred inflows, Pension (5,949,922)
Deferred outflows, OPEB 702,902
Deferred inflows, OPEB (34,657) 1,788,997
Current assets 1,126,037
Noncurrent assets 2,177,336
Accounts payable and accrued liabilities (456,570) 2,846,803 Net Position of governmental activities $ 45,048,624
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, 2023
Governmental Internal
Funds Changes Services Statement of
Balance Sheet Reclassifications in GAAP Balances Net Position ASSETS
Current assets:

Cash and investments $ - 11,058,112 $ - $ 1,126,037 $ 12,184,149 $ Restricted cash and investments - 1,651,438 - - 1,651,438 Receivables:

Taxes - 1,227 - - 1,227
Intergovernmental - 1,007,696 - - 1,007,696
Loans/Notes receivable - 2,628,240 - - 2,628,240
Other receivable - 1,628,555 - - 1,628,555
Due from other funds 384,191 - (384,191) - -
Prepaid items - 16,243 - - 16,243
Total current assets 18,375,702 - (384,191) 1,126,037 19,117,548 Noncurrent assets:

Capital assets, net - - 39,978,770 2,177,336 42,156,106 Total noncurrent assets - - 39,978,770 2,177,336 42,156,106

DEFERRED OUTFLOWS OF RESOURCES
Pension plan - - 7,070,674 - 7,070,674
OPEB - - 702,902 - 702,902
Deferred loss on refunding - - - - - Total assets and deferred outflows of resources $ 18,375,702 $ 47,752,346 (384,191) $ 3,303,373 $ 69,047,230 $

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities $ - 884,940 $ - $ 456,570 $ 1,341,510 $ Interest payable - - 171,568 - 171,568
Due to other funds 384,191 - (384,191) - - Deposits payable - 31,574 - - 31,574 Compensated absences - current portion - - 57,187 - 57,187 Due within one year - - 195,000 - 195,000 Total current liabilities 1,300,705 423,755 (384,191) 456,570 1,796,839 Noncurrent liabilities:

Long-term liabilities:

Compensated absences - - 507,406 - 507,406
Due after one year - - 7,780,626 - 7,780,626
Landfill post-closure - - 124,500 - 124,500
Net OPEB obligation - - 2,714,088 - 2,714,088
Net pension liability - - 5,285,568 - 5,285,568
Total noncurrent liabilities - - 16,412,188 - 16,412,188 Total liabilities 1,300,705 16,835,943 (384,191) 456,570 18,209,027

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 2,339,946 - (2,339,946) -
Pension Plan - - 5,949,922 - 5,949,922
OPEB, deferred inflow - - 34,657 - 34,657
Total liabities and deferred inflows: 3,640,651 20,480,576 (384,191) 456,570 24,193,606

FUND BALANCES/NET POSITION
Fund balances:

Nonspendable 16,243 - (16,243) - -
Restricted 6,754,806 - (6,754,806) - -
Committed 2,679,348 - (2,679,348) - -
Assigned 3,948,390 - (3,948,390) - -
Unassigned (deficit) 1,336,264 - (1,336,264) - - - Net position: - Net investment in capital assets - - 39,978,770 2,177,336 42,156,106 Restricted - - 6,754,806 - 6,754,806
Unrestricted 14,735,051 - 669,467 (19,461,806) (4,057,288) Total fund balances/net position - 14,735,051 27,271,770 2,846,803 44,853,624 Total liabilities, deferred inflows and net position $ 18,375,702 $ 47,752,346 (384,191) $ 3,303,373 $ 69,047,230 $ 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, 2023
CDBG Special
General Program Income Sales Tax
Fund Special Revenue Special Revenue
REVENUES:

Taxes
Taxes and assessments $ - 7,433,506 $ 1,175,478 $
Licenses and permits - 94,599 -
Fines and forfeitures - 53,799 -
Intergovernmental 90,000 583,811 -
Use of money and property 156,840 (374,589) 63,256
Charges for services - 91,900 -
Reimbursements - 3,764,941 -
Other revenues - 143,257 -
Total revenues 246,840 11,791,224 1,238,734
EXPENDITURES:

Current:

General government 2,809,566 - -
Public safety 4,050,604 - -
Public works 1,433,715 - 374,970
Community development 420,929 124,669 -
Marketing and promotions 210,230 - -
Cost allocations 1,222,680 - -
Capital outlay - - -
Debt service:

Principal - 3,425,000 -
Interest and fiscal charges - 438,815 -
Total expenditures 124,669 14,011,539 374,970

REVENUES OVER (UNDER)
EXPENDITURES 122,171 (2,220,315) 863,764
OTHER FINANCING SOURCES (USES):

Transfers in 154,641 - -
Transfers out (551,224) (48,285) (411,202)
Total other financing sources (uses) (48,285) (396,583) (411,202) Net change in fund balances 73,886 (2,616,898) 452,562

RESIDUAL EQUITY TRANSFERS IN - - -
FUND BALANCES (DEFICITS):

Beginning of year 8,592,235 44,810 2,026,740
End of year $ 118,696 5,975,337 $ 2,479,302 $
Major Funds
The accompanying notes are an integral part of these basic financial statements. 32 Permanent CDBG Street Other
Local Housing Super NOFA Resurfacing Governmental
Special Revenue Special Revenue Capital Projects Funds Totals $ - - $ - $ 66,990 $ 8,675,974 $
- - - - 94,599
- - - 103,905 157,704
2,400,000 2,950,837 25,000 2,645,353 8,695,001
- - - 43,184 (111,309)
- - - 110,262 202,162
- - - - 3,764,941
- - - - 143,257
2,950,837 2,400,000 25,000 2,969,694 21,622,329
- - - 713 2,810,279
- - - 338,252 4,388,856
- - - 415,659 2,224,344
3,072,334 2,725 - 1,059,571 4,680,228
- - - - 210,230
- - - - 1,222,680
465,650 279,484 745,134
- - - - 3,425,000
- - - - 438,815
3,072,334 2,725 279,484 2,279,845 20,145,566
(121,497) 2,397,275 (254,484) 689,849 1,476,763
200,000 48,285 1,062,426 1,465,352
- - - (288,271) (1,298,982)
48,285 - 200,000 774,155 166,370
(73,212) 2,397,275 (54,484) 1,464,004 1,643,133
- - -
(67,706) (26,132) - 2,521,971 13,091,918
$ (140,918) 2,397,275 $ (80,616) $ 3,985,975 $ 14,735,051 $ 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, 2023
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 $ 65,491 2,810,279 $ 55,857 $ 189,727 $ (922,832) $ 243,629 $ 557,282 $ 2,999,433 $ Public safety - 4,388,856 - 7,274 - 380,479 870,316 5,646,925 Public works - 2,224,344 720,699 - 192,833 441,090 3,578,966 Community development (124,091) 4,680,228 - - - 405,739 928,095 5,889,971 Marketing and promotions - 210,230 - - - - - 210,230
Cost allocations - 1,222,680 - - - (1,222,680) - -
Capital outlay 745,134 - - - (745,134) - - -
Debt service/Interest 3,863,815 (3,331,349) - - - - - 532,466 Total governmental activities $ (3,389,949) 20,145,566 $ 55,857 $ 917,700 $ (1,667,966) $ - $ 2,796,783 $ 18,857,991 $ 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, 2023
Net change in fund balances - total governmental funds $ 1,643,133 Capital asset purchases capitalized $ 1,667,966
Proceeds from sale of capital assets -
Depreciation expense (917,700) 750,266
142,484
Bonds payable 3,425,000
Change in interst payable (93,651)
Landfill closure liability 124,091
Change in compensated absences (65,491) (35,051)
Net OPEB obligation -
Net Pension obligation (2,796,783) (2,796,783)
(72,227)
Change in Net Position of governmental activities $ 3,056,822 Amounts reported for governmental activities in the Statement of Activities are different because:

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

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

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

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

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

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

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

Internal services funds are used by management to charge the costs of certain activities, such as fleet services, to individual funds. The change in Net Position of the Internal Service Funds net of capital assets are included in the governmental activities in the government-wide Statement of Net Position.
35 City of Fort Bragg, California
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget to Actual - General and Major Special Revenue Funds For the year ended June 30, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Taxes and assessments 7,557,831 $ 7,557,831 $ 7,433,506 $ (124,325) $ Licenses and permits 85,413 85,413 94,599 9,186
Fines and forfeitures 71,500 71,500 53,799 (17,701)
Intergovernmental 529,555 663,532 583,811 (79,721)
Use of money and property 54,000 54,000 (374,589) (428,589) Charges for services 30,846 30,846 91,900 61,054
Reimbursements 2,346,018 2,396,018 3,764,941 1,368,923
Other revenues 14,500 38,500 143,257 104,757
Total revenues 10,897,640 10,689,663 11,791,224 893,584 EXPENDITURES:

Current:

General government:

City Council 193,719 222,319 224,220 (1,901)
Administrative services 1,270,374 1,231,282 1,066,104 165,178 Finance 606,653 617,639 551,250 66,389
Other - unclassified 1,397,272 1,399,108 967,992 431,116 Public safety:

Police Department 3,805,178 4,247,969 3,619,849 628,120 Fire Department 439,962 439,962 430,755 9,207
Public works:

Administration and engineering 684,010 710,145 684,218 25,927 Parks and facilities 41,100 41,100 50,505 (9,405)
Street maintenance 122,000 137,000 119,863 17,137
Storm drains 19,500 19,500 13,415 6,085
Corporation yard 402,110 420,523 481,226 (60,703)
Traffic and safety 28,500 86,952 84,488 2,464
Community development 438,469 552,805 420,929 131,876
Marketing and promotions 220,500 220,500 210,230 10,270 Cost allocations 686,131 686,131 1,222,680 (536,549)
Debt service:

Principal 85,000 - 3,425,000 (3,425,000)
Interest and fiscal charges 514,703 364,381 438,815 (74,434) Total expenditures 11,397,316 10,955,181 14,011,539 (2,614,223)

REVENUES OVER (UNDER)
EXPENDITURES (499,676) (265,518) (2,220,315) (1,720,639) OTHER FINANCING SOURCES (USES):

Proceeds from sales of assets 5,000 5,000 - (5,000)
Transfers in 57,830 57,830 154,641 96,811
Transfers out (609,054) (57,830) (551,224) 57,830
Total other financing sources (uses) (546,224) 5,000 (396,583) 149,641 Net change in fund balances (1,045,900) (260,518) (2,616,898) (1,570,998) FUND BALANCES (DEFICITS):

Beginning of year 8,592,235 8,592,235 8,592,235 -
End of year $ 7,546,335 8,331,717 $ 5,975,337 $ (1,570,998) $ 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) $ - - $ - $ - $ 1,100,000 $ 1,100,000 $ 1,175,478 $ 75,478 $ - - - - - - - -
- - - - - - - -
- - 90,000 90,000 - - - -
78,337 78,337 156,840 78,503 13,000 13,000 63,256 50,256 - - - - - - - -
- - - - - - - -
- - - - - - - -
78,337 78,337 246,840 168,503 1,113,000 1,113,000 1,238,734 125,734 - - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - 70,720 374,970 (304,250)
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - 124,669 (124,669) - - - -
- - - - - - - -
- - - - - - -
- - - - - - - -
- - - - - - - -
- - 124,669 (124,669) - 70,720 374,970 (304,250)
78,337 78,337 122,171 43,834 1,113,000 1,042,280 863,764 (178,516) - - - - - - - -
- - - - - - - -
(78,337) (78,337) (48,285) 30,052 (1,270,595) (1,569,872) (411,202) 1,158,670 (78,337) (78,337) (48,285) 30,052 (1,270,595) (1,569,872) (411,202) 1,158,670 - - 73,886 73,886 (157,595) (527,592) 452,562 980,154
44,810 44,810 44,810 - 2,026,740 2,026,740 2,026,740 -
$ 44,810 44,810 $ 118,696 $ 73,886 $ 1,869,145 $ 1,499,148 $ 2,479,302 $ 980,154 $ (continued)
Budgeted Amounts
CDBG Program Income Special Revenue Fund Special Sales Tax Special Revenue 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, 2023
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:

Taxes and assessments - $ - $ - $ - $
Licenses and permits - - - -
Fines and forfeitures - - - -
Intergovernmental - - 2,400,000 2,400,000
Use of money and property - - - -
Charges for services - - - -
Reimbursements - - - -
Other revenues - - - -
Total revenues - - 2,400,000 2,400,000
EXPENDITURES:

Current:

General government:

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

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

Administration and engineering - - - -
Parks and facilities - - - -
Street maintenance - - - -
Storm drains - - - -
Corporation yard - - - -
Traffic and safety - - - -
Community development - - 2,725 (2,725)
Marketing and promotions - - - -
Cost allocations - - - -
Debt service:

Principal - - - -
Interest and fiscal charges - - - -
Total expenditures - - 2,725 (2,725)

REVENUES OVER (UNDER)
EXPENDITURES - - 2,397,275 2,397,275
OTHER FINANCING SOURCES (USES):

Proceeds from sales of assets - - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses) - - - -
Net change in fund balances - - 2,397,275 2,397,275
FUND BALANCES:

Beginning of year - - 0 -
End of year $ - - $ 2,397,275 $ 2,397,275 $
Permanent Local Housing Special Revenue
Budgeted Amounts
38 Variance w/Final
Positive
Original Final Actual (Negative)
$ - - $ - $ - $
- - - -
- - - -
2,991,010 2,950,837 2,991,010 (40,173)
- - - -
- - - -
- - - -
- - - -
2,991,010 2,991,010 2,950,837 (40,173)
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
3,114,417 5,737,127 3,072,334 2,664,793
- - - -
- - - -
- - - -
- - - -
5,737,127 3,114,417 3,072,334 2,664,793
(2,746,117) (123,407) (121,497) 2,624,620
- - - -
- - 48,285 48,285
- - - -
- - 48,285 48,285
(2,746,117) (123,407) (73,212) 2,672,905
(67,706) (67,706) (67,706) -
$ (2,813,823) (191,113) $ (140,918) $ 2,672,905 $
(concluded)
CDBG Super NOFA Special Revenue
Budgeted Amounts
39 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. 40 City of Fort Bragg, California
Statement of Net Position
Proprietary Funds
June 30, 2023
Governmental
Activities
Water Sewer CV Starr Center Internal
Fund Fund Fund Totals Service Funds
ASSETS
Current assets:

Cash and investments 4,643,200 $ 3,548,055 $ 2,868,117 $ 11,059,372 $ 1,126,037 $ Restricted cash and investments 108,064 - - 108,064
Receivables:

Accounts 312,220 383,384 177,849 873,453 -
Inventory and prepaids 84,799 8,107 996 93,902 -
Total current assets 3,939,546 5,148,283 3,046,962 12,134,791 1,126,037 Noncurrent assets:

Capital assets, net 12,203,023 24,992,579 18,187,217 55,382,819 2,17 7,336 Total noncurrent assets 24,992,579 12,203,023 18,187,217 55,382,819 2,177,336 Total Assets 28,932,125 17,351,306 21,234,179 67,517,610 3,303,373

DEFERRED OUTFLOWS OF RESOURCES
Pension plan - 115,856 - 115,856 -
Deferred loss on debt refunding 30,035 - - 30,035 -
Total assets and defered outflows of resources $ 29,047,981 17,381,341 $ 21,234,179 $ 67,663,501 $ 3,303,373 $

LIABILITIES
Current liabilities:

Accounts payable 122,471 $ 119,556 $ 545,699 $ 787,726 $ 449,042 $ Accrued payroll - 23,412 - 23,412 7,528
Due to other funds - - - - -
Interest payable 10,394 - - 10,394 -
Unearned revenue - 6,466 7,378 13,844 -
Deposits payable 148,020 250 5,386 153,656 -
Compensated absences - current portion 1,597 5,722 1,522 8,841 - Due within one year 332,000 93,000 - 425,000 -
Total current liabilities 248,406 614,482 559,985 1,422,873 456,570 Noncurrent liabilities:

Compensated absences 17,239 55,923 36,421 109,583 -
Due after one year 4,556,000 - 4,556,000 -
Net pension liability - 178,438 - 178,438 -
Total noncurrent liabilities 4,790,361 17,239 36,421 4,844,021 - Total liabilities 5,038,767 631,721 596,406 6,266,894 456,570

DEFERRED INFLOWS OF RESOURCES
Pension Plan - 1,131,938 - 1,131,938 -
Total deferred inflows of resources 1,131,938 - - 1,131,938 -

NET POSITION
Net Position:

Net investment in capital assets 11,871,023 20,343,579 18,187,217 50,401,819 2,177,336 Restricted for debt service 108,064 - - 108,064 -
Unrestricted 4,770,533 2,533,697 2,450,556 9,754,786 669,467 Total net position 22,877,276 16,749,620 20,637,773 60,264,669 2,846,803 Total liabilities, deferred inflows and net position $ 29,047,981 17,381,341 $ 21,234,179 $ 67,663,501 $ 3,303,373 $ The accompanying notes are an integral part of these basic financial statements. 41 City of Fort Bragg, California
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2023
Governmental
Activities
Water Sewer CV Starr Center Internal
Fund Fund Fund Totals Service Funds
OPERATING REVENUES:

Charges for service 3,006,137 $ 3,435,125 $ 600,471 $ 7,041,733 $ - $ Other operating revenue 37,104 87,258 38,558 162,920 16,546 Interdepartmental charges - - - - 1,829,514
Total operating revenues 3,522,383 3,043,241 639,029 7,204,653 1,846,060 OPERATING EXPENSES:

Personnel services 1,100,300 970,116 1,061,549 3,131,965 505,024 Administration 700,107 1,430,932 439,874 2,570,913
Repairs and maintenance 47,321 95,854 623 143,798 97,176 Materials and supplies 368,037 509,282 5,899 883,218 394,768 Utilities 174,940 305,844 365,941 846,725 -
Contractual services 129,287 446,764 4,136 580,187 1,797 Insurance 50,151 56,506 60,229 166,886 -
Other operating 6,416 1,284 2,257 9,957 -
Depreciation 364,563 816,894 650,590 1,832,047 133,272
Total operating expenses 4,633,476 2,941,122 2,591,098 10,165,696 1,132,037 OPERATING INCOME (1,111,093) 102,119 (1,952,069) (2,961,043) 714,023 NONOPERATING REVENUES (EXPENSES):

Property taxes - - 305,258 305,258 -
Sales taxes - - 1,175,441 1,175,441 -
Interest revenue 144,349 94,541 73,536 312,426 -
Refunds and rebates - - (1,607) (1,607) -
Interest expense (93,122) (93,850) - (186,972) -
Total non-operating revenues, net 691 51,227 1,552,628 1,604,546 -

NET INCOME BEFORE
TRANSFERS (1,110,402) 153,346 (399,441) (1,356,497) 714,023 Transfers in - - - - 183,630
Transfers out (75,000) (75,000) - (150,000) (200,000)
Total transfers (75,000) (75,000) - (150,000) (16,370)
CHANGE IN NET POSITION (1,185,402) 78,346 (399,441) (1,506,497) 697,653 NET POSITION:

Beginning of year 16,671,274 24,062,678 21,037,214 61,771,166 2,149,150 End of year 16,749,620 $ 22,877,276 $ 20,637,773 $ 60,264,669 $ 2,846,803 $ The accompanying notes are an integral part of these basic financial statements. 42 City of Fort Bragg, California
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2023
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 3,11 $ 3,591,721 7,634 $ 625,619 $ 7,334,974 $ - $ Cash received from interfund services provided - - - - 1,846,060 Cash payments to suppliers for goods and services (1,461,91 (2,754,013) 1) (754,554) (4,970,478) (84,235) Cash payments to employees for services (1,108,125) (645,124) (1,061,550) (2,814,799) (504,398) Net cash provided by operating activities 192,584 547,598 (1,190,485) (450,303) 1,257,427

CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:

Transfers received - - - - 183,630
Transfers paid (75,000) (75,000) - (150,000) (200,000)
Taxes received - - 1,480,699 1,480,699 -
Refunds paid - - (1,607) (1,607) -
Net cash used by noncapital financing activities (75,000) (75,000) 1,479,092 1,329,092 (16,370)

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Acquisition and construction of capital assets (2,882,899) (136,244) (75,298) (3,094,441) (903,152) Principal paid on long term debt (713,077) (91,000) - (804,077) - Interest paid on long term debt (99,114) (93,850) - (192,964) - Net cash (used) by capital and related financing activities (321,094) (3,695,090) (75,298) (4,091,482) (903,152) CASH FLOWS FROM INVESTING ACTIVITIES:

Investment income received 144 94 ,349 73 ,541 312 ,536 - ,426 Net cash provided by investing activities 94,541 144,349 73,536 312,426 - Net increase (decrease) in cash and cash equivalents (108,969) (3,078,143) 286,845 (2,900,267) 337,905 CASH AND CASH EQUIVALENTS:

Beginning of year 7,829,407 3,657,024 2,581,272 14,067,703 788,132 End of year 4,751,264 $ 3,548,055 $ 2,868,117 $ 11,167,436 $ 1,126,037 $ Presentation in Statement of Financial Position:

Cash and investments 4,643,200 $ 3,548,055 $ 2,868,117 $ 11,059,372 $ 1,126,037 $ Restricted cash and investments 108,064 - - 108,064 -
Total Cash and investments 4,751,264 $ 3,548,055 $ 2,868,117 $ 11,167,436 $ 1,126,037 $ Reconciliation of income from operations to net
cash provided by operating activities:

Operating income 102,119 $ (1,111,093) $ (1,952,069) $ (2,961,043) $ 714,023 $ Adjustments to reconcile operating income
to net cash provided by operating activities:

Depreciation 364,563 816,894 650,590 1,832,047 133,272
Pension - 314,960 - 314,960 -
(Increase) decrease in current assets:

Accounts receivable 72,689 69,338 101,346 243,373 -
Inventory and prepaids (363) 4,076 - 3,713 -
Increase (decrease) in liabilities: .

Accounts payable 14,711 88,377 23,059 126,147 409,506
Accrued liabilities - (11,621) - (11,621) 626
Deposits payable 1,704 - (13,410) (11,706) -
Compensated absences (7,825) 21,653 (1) 13,827 -
Net cash provided by operating activities $ 192,584 547,598 $ (1,190,485) $ (450,303) $ 1,257,427 $ There were no noncash investing, capital, or financing activities affecting recognized assets and liabilities for the year ended June 30, 2023.

The accompanying notes are an integral part of these basic financial statements. 43 This page intentionally left blank.
44 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
45 City of Fort Bragg, California
Statement of Fiduciary Net Position
Fiduciary Activities
June 30, 2023
Former Fort Bragg
Redevelopment
Agency

ASSETS AND DEFERRED OUTFLOWS
Current assets:

Cash and investments $ 192,894
Other receivable 8,169
Total assets 201,063
Deferred outflows of resources
Deferred loss on debt refunding 64,790
Total deferred outflows of resources 64,790
Total assets and deferred outflows of resources $ 265,853

LIABILITIES, DEFERRED INFLOWS AND NET POSITION
Current liabilities:

Accounts payable and accrued liabilities $ -
Interest payable 28,283
Due within one year 165,000
Total current liabilities 193,283
Long-term liabilities:

Due after one year 2,657,720
Total long-term liabilities 2,657,720
Deferred inflows of resources
Unavailable revenue 271,940
Total liabilities and deferred inflows of resources 3,122,943 Net Position (Deficit) (2,857,090)
Total liabilities and net position $ 265,853
Successor Agency
The accompanying notes are an integral part of these basic financial statements. 46 City of Fort Bragg, California
Statement of Changes in Fiduciary Net Assets
Private Purpose Trust Funds
For the year ended June 30, 2023
Former Fort Bragg
Redevelopment
Agency
ADDITIONS:

Property taxes $ 438,024
Total operating revenues 438,024
DEDUCTIONS:

Community development 128,304
Interest and trustee fees 86,999
Total operating expenses 215,303
CHANGE IN FIDUCIARY NET ASSETS 222,721
NET ASSETS (DEFICIT):

Beginning of year (3,079,811)
End of year $ (2,857,090)
Successor Agency
The accompanying notes are an integral part of these basic financial statements. 47 This page intentionally left blank.
48 49

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, 2023
50 Page
Note 1 ‐ Summary of Significant Accounting Policies ..................................................................................... 51 A. Description of Government‐Wide Financial Statements ....................................................................... 51 B. Reporting Entity ...................................................................................................................................... 51 C. Basis of Presentation .............................................................................................................................. 52 D. Measurement Focus ............................................................................................................................... 54 E. Budgetary Information ........................................................................................................................... 55 F. Unearned Revenue ................................................................................................................................. 56 G. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/ Fund Balance .......................................................................................................................................... 57 H. Revenues, Expenditures/Expenses ........................................................................................................ 62 I. Use of Estimates ...................................................................................................................................... 64 J. New and Closed Funds ............................................................................................................................ 64 K. Reclassifications ...................................................................................................................................... 64 L. Other Post‐Employment Benefits (OPEB) ............................................................................................... 64 Note 2 – Cash and Investments ........................................................................................................................ 65 Note 3 – Accounts Receivable .......................................................................................................................... 68 Note 4 – Loans and Notes Receivable .............................................................................................................. 69 Note 5 – Capital Assets ..................................................................................................................................... 70 Note 6 – Accounts Payable and Accrued Liabilities ......................................................................................... 72 Note 7 – Long‐term Liabilities .......................................................................................................................... 72 Note 8 – Net Position/Fund Balances .............................................................................................................. 76 Note 9 – Interfund Transactions ...................................................................................................................... 78 Note 10 – Risk Management ............................................................................................................................ 79 Note 11 – Public Employee Retirement System .............................................................................................. 81 Note 12 – Other Post‐Employment Benefits ................................................................................................... 86 Note 13 – Successor Agency for Trust for Assets of Former Redevelopment Agency ................................... 90 Note 14 – Commitments and Contingencies ................................................................................................... 92 Note 15 – New Accounting Pronouncements .................................................................................................. 93 City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
51 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, 2023
52 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, 2023
53 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 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 Permanent Local Housing Special Revenue Fund provides funding to local governments in California for housing‐related projects and programs that assist in addressing the unmet housing needs of their local communities. The City Council of Fort Bragg approved a resolution in 2021 to authorize the application for PLHA program to support the DANCO project. The City received $2.4 million for this purpose, of which $2.28 million is allocated as a loan for the project, while the remaining funds cover the city's administrative expenses.

The CDBG Super NOFA Special Revenue Fund is used 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.

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, 2023
54 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, 2023
55 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, 2023
56 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, 2023
57 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, 2023. 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, 2023
58 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, 2023, 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, 2023
59 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, 2023
60 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, 2023
61 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, 2023
62 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, 2023, are summarized below.

Fund Amount
General Fund 263,911 $
Asset Forfeiture 93,713
Fleet & Equipment Services 312,037
CDBG 2020 32,764
Developer Deposit Accounts 25,200
MCOG 67,690
Water Enterprise 888,398
Capital Projects 288,055
Wastewater Enterprise 394,947
CV Starr 300,140
$     2,666,855
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, 2023
63 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, 2023
64 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 2022/20 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, 2023
Measurement Date     June 30, 2023
Measurement Period     July 1, 2022 to June 30, 2023
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
65 2.  CASH AND INVESTMENTS
At  June 30, 2023,  the City’s pooled cash and investments, classified by maturity, consisted of  the  following stated at fair value:

Fair
<1 1 to 3 3 to 5 Deposits Market Value
Cash equivalents and investments pooled
Pooled cash, at fair value
Cash in bank  ‐ $                      ‐ $                   ‐ $                      4,122,079 $         4,122,079 Petty cash ‐                         ‐                         ‐                         1,989                    1,989 Total pooled items ‐                         ‐                         ‐                         4,124,068            4,124,068 Pooled investments, at fair value
Interest obligations
Par Rate
$       0.57% ‐ 1.00% Federal Agency Securities ‐ 1,000,000                         ‐                         900,795            ‐                             900,795 $     0.7% ‐ 5.15% Certificates of Deposits 488,911 12,879,000            7,680,407         4,199,176         ‐                             12,368,494 Money Market Funds ‐                         ‐                         ‐                         12,169                  12,169 State of California Local Agency Investment Fund ‐                         ‐                         ‐                         6,138,953            6,138,953 PARS Section 115 Pension Trust Fund ‐ Mutual Fund 1,651,438         ‐                         ‐                         ‐                             1,651,438 Total pooled investments ‐ interest obligations 2,140,349         7,680,407         5,099,971         6,151,122            21,071,849 Total cash equivalents and investments pooled 2,140,349 $      7,680,407 $      5,099,971 $      10,275,190 $       25,195,917 $ Amounts reported in:

Governmental activities (unrestricted) 12,184,149 $
Governmental activities (restricted) 1,651,438
Business‐type activities (unrestricted) 11,059,372
Business‐type activities (restricted) 108,064
Fiduciary activities 192,894
Total  25,195,917 $
Maturities (in years)
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, 2023, 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.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
66 2.  CASH AND INVESTMENTS, Continued
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
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, 2023, 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 concentration of credit risk is the risk of loss that may be caused by the City’s investment in a single issuer. The investment policy of the City contains no limitations on the amount that can be invested in any single issuer beyond that stipulated by the California government code. Investments in the securities of any individual issuers, other than U.S. Treasury Securities, mutual funds and the California Local Agency Investment Fund, that represent 5 percent or more of the City’s total investments are as follows as of June 30, 2023:

Investment Type Fair Value Concentration
Certificate of Deposits 12,368,494 $         49.09%
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.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
67 2.  CASH AND INVESTMENTS, Continued
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, 2023, the carrying amount of the City’s cash deposits (including fiduciary funds) was $4,122,079 of which $250,000 was covered by federal depository insurance and $3,997,063 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, 2023, 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.

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).

Fair Value of Investments
The City measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles (GAAP). These guidelines recognize a three‐tiered fair value hierarchy as follows:
 Level 1: Quoted prices for identical investments in active markets;  Level 2: Observable inputs other than those in Level 1; and  Level 3: Unobservable inputs.

Debt and equity securities classified as Level 1 are valued using prices quoted in active markets for those securities. Debt and equity securities classified in Level 2 are valued using the following approaches: debt securities are normally valued based on price data obtained from observed transactions and market price quotations from broker dealers and/or pricing vendors; equity  securities are valued using fair value per share for each fund. Certificates of deposit classified in level 2 are valued using broker quotes that utilize observable market inputs. Securities classified as Level  3 have limited trade information, these securities are priced or using the last trade price or estimated using recent trade prices.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
68 2.  CASH AND INVESTMENTS, Continued
Investments by Fair Value Level June 30, 2023 Level 1 Level 2 Level 3 Federal Agency Securities 900,795 $               900,795 $            ‐ $                         ‐ $ Certificates of Deposits 12,368,494             12,368,494         ‐                       ‐ Money market 12,169                     ‐                       12,169                 ‐ Total fair value 13,281,458             13,269,289         12,169                 ‐ Investments Exempt from Fair Value Hierarchy
Local Agency Investment Fund (LAIF) 6,138,953
PARS Section 115 Pension Trust Fund ‐ Mutual Funds 1,651,438 $         21,071,849
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, 2023 was $25,677,325,266 of which the City had a balance of $6,138,953.  LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2023 has a portfolio with market valuation including accrued interest of $177,045,532,801. 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, 2023:

These amounts resulted in the following concentrations in receivables:

Other Governments  29%   Individuals/Business  71%

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

Receivables
Governmental Activities
Taxes  1,227 $
Intergovernmental 1,007,696
Other  1,628,555
$                 2,637,478
Business‐type activities
Accounts Receivable 873,453 $
$                    873,453
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
69 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, 2023, consisted of the following:

Beginning Ending
June 30, 2022 Additions  Deletions  June 30, 2023
CDBG Revolving Loans 1,294,447 $      75,369 $        (216,244) $  1,153,572 $ Mendocino Coast Hospitality Center Loan             ‐ 904,293                  ‐                904,293 Rural Community Housing Development Corporation Loans             256,750 313,625         ‐                570,375 Employee Loans                     ‐ 985                  (985)              ‐ Total loans/notes receivable 2,513,350 $      332,119 $      (217,229) $  2,628,240 $ The following are descriptions of the loans and notes receivable outstanding as of June 30, 2023:

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.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
70 5.  CAPITAL ASSETS
Governmental capital asset activity for the year ended June 30, 2023, was as follows:

Balance Balance
June 30, 2022 Additions Deletions June 30, 2023
Governmental activities:

Nondepreciable assets:

Land 12,952,262 $    ‐ $                   ‐ $                   12,952,262 $ Construction in progress 214,292             1,425,149          ‐                      1,639,441 Total nondepreciable assets       1,425,149 13,166,554          ‐                      14,591,703 Depreciable assets:

Buildings 4,675,798          ‐                      ‐                      4,675,798 Machinery, equipment and vehicles 2,997,965          242,817             ‐                      3,240,782 Infrastructure 38,238,681       ‐                      ‐                      38,238,681 Total depreciable assets       242,817 45,912,444             ‐                      46,155,261 Total       1,667,966 59,078,998          ‐                      60,746,964 Accumulated depreciation:

Buildings (3,544,954)        (69,825)              ‐                      (3,614,779) Machinery, equipment and vehicles (1,577,171)        (126,833)            ‐                      (1,704,004) Infrastructure (12,551,033)      (721,042)            ‐                      (13,272,075) Total accumulated depreciation      (917,700) (17,673,158)            ‐                      (18,590,858) Net depreciable assets       (674,883) 28,239,286            ‐                      27,564,403 Total net capital assets $    750,266 41,405,840 $          ‐ $                   42,156,106 $ Depreciation expense for capital assets was charged to functions as follows:

General government 189,727 $
Public safety 7,274
Public works 720,699
$               917,700
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
71 5.  CAPITAL ASSETS, Continued
Business‐type capital asset activity for the year ended June 30, 2023, was as follows:

Balance Balance
June 30, 2022 Additions Deletions June 30, 2023
Business‐type activities:

Nondepreciable assets:

Land 785,079 $            2,425,619 $         ‐ $                     3,210,698 $ Construction in progress 3,623,852            604,165               ‐                        4,228,017 Total nondepreciable assets            3,029,784 4,408,931            ‐                        7,438,715 Depreciable assets:

Buildings 29,416,583          50,621                  ‐                        29,467,204 Machinery, equipment and vehicles 6,729,660            4,295                    (53,489)                6,680,466 Infrastructure 39,466,151          9,740                    ‐                        39,475,891 Land improvements 542,303               ‐                        ‐                        542,303 Total depreciable assets          64,656 76,037,935                  (53,489)                76,165,864 Total          3,094,440 80,446,866            (53,489)                83,604,579 Accumulated depreciation:

Buildings (9,573,891)           (727,708)              ‐                        (10,301,599) Machinery, equipment and vehicles (4,721,184)           (167,464)              ‐                        (4,888,648) Infrastructure (11,605,825)        (883,385)              ‐                        (12,489,210) Land improvements (542,303)              ‐                        ‐                        (542,303) Total accumulated depreciation        (1,778,557) (26,443,203)           ‐                        (28,221,760) Net depreciable assets          (1,713,901) 49,711,494           (53,489)                47,944,104 Total net capital assets $      1,315,883 54,120,425 $         (53,489) $             55,382,819 $ Depreciation expense for capital assets was charged to functions as follows:

Water 354,563 $
Sewer 773,404
CV Starr Center 650,590
$               1,778,557

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
72 6.  ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued payroll and related liabilities consisted of the following at June 30, 2023:

Governmental Business‐type
Activities Activities Total
Accounts payable 1,142,902 $        772,070 $           1,914,972 $ Accrued payroll and related liabilities 198,608               39,068                237,676 Total 1,341,510 $        811,138 $           2,152,648 $ These amounts resulted in the following concentrations in payables:

Vendors  89%
Employees  11%
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, 2023:

Balance Balance Due Within
July 1, 2022 Additions Retirements June 30, 2023 One Year Governmental Activities:

Compensated absences 499,102 $           115,401 $        (49,910) $           564,593 $           57,187 $ Landfill post‐closure 248,591               ‐                         (124,091)            124,500               124,500 2021 Lease revenue bonds 11,440,000         ‐                         (3,425,000)         8,015,000           195,000 2021 Lease revenue bonds discount (41,249)                ‐                         1,875                  (39,374)                ‐ Total governmental activities $      115,401 12,146,444 $        (3,597,126) $      8,664,719 $        376,687 $ Business‐type activities
Bonds payable:
2014 Water Revenue Refunding Bond 652,000               ‐                         (320,000)            332,000               332,000 2018 WW Plant Certificates of Participation 4,740,000           ‐                         (91,000)               4,649,000           93,000 Loans payable:

SDWRL 362,259               ‐                         (362,259)            ‐                            ‐ SDWRL discount 60,853                 ‐                         (60,853)               ‐                            ‐ Total business‐type activity debt           ‐ 5,815,112                         (834,112)            4,981,000           425,000 Compensated absences 104,597               35,005              (21,178)               118,424               8,841 Total business‐type activities $        35,005 5,919,709 $           (855,290) $         5,099,424 $        433,841 $ City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
73 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,  $7,540,414 were used to pay down a portion of the outstanding UAL projected by CalPERS.  On August 5, 2022 the City declared a portion of the bond proceeds to be surplus and redeemed $3,425,000 of bond principal. Interest is payable semi‐annually on May 1 and November 1 of each year, commencing November 1, 2023. 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 1.110% 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, 2023, 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, 2023, 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, 2023 was $332,000. $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, 2023
74 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, 2023 was $4,649,000.

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, 2023, 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, 2023 was $564,593 with $57,187 expected to be paid within a year; The business‐type activities compensated absences balance at June 30, 2023 was $118,424 with $8,841 expected to be paid within a year.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
75 7.  LONG‐TERM LIABILITIES, Continued
Debt Service, Continued
Future debt service for Business‐Type Activities at June 30, 2023, is as follows:

Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 2024 195,000 $                245,513 $                  93,000 $                92,010 $              332,000 $              5,080 $ 2025 190,000                   243,348                     95,000                   90,130                 ‐                              ‐ 2026 225,000                   240,555                     97,000                   88,210                 ‐                              ‐ 2027 285,000                   236,910                     99,000                   86,250                 ‐                              ‐ 2028 330,000                   231,410                     101,000                 84,250                 ‐                              ‐ 2029‐2033 1,770,000                1,                  535,000 034,982                 389,850               ‐                              ‐ 2034‐2038 2,030,000                737,120                     589,000                 333,750               ‐                              ‐ 2039‐2043 2,530,000                360,325                     651,000                 271,750               ‐                              ‐ 2044‐2048 460,000                   16,100                        718,000                 203,340               ‐                              ‐ 2049‐2053 ‐                                 ‐                                   793,000                 127,910               ‐                              ‐ 2054‐2058 ‐                                 ‐                                   878,000                 44,500                 ‐                              ‐ Total 8,015,000 $             3, $               4,649,000 346,263 $          1,811,950 $         332,000 $              5,080 $ Due within one year 195,000 $                245,513 $                  93,000 $                92,010 $              332,000 $              5,080 $ Due after one year 7,820,000                3,                  4,556,000 100,750             1,719,940            ‐                              ‐ Total 8,015,000 $             3, $               4,649,000 346,263 $          1,811,950 $         332,000 $              5,080 $ 2018 WW Plant Certificates
Of Participation
2014 Water Revenue
Refunding Bonds
Governmental Activities Business‐Type Activities
2021 Lease Revenue Bonds
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
76 8.  NET POSITION/ FUND BALANCES
Net position (deficit)
Governmental Business‐type
Activities Activities Total
Net investment in capital assets 42,156,106 $           50,401,819 $     92,557,925 $ Restricted 6,754,806                108,064              6,862,870 Unrestricted (deficit) (4,057,288)               9,754,786          5,697,498 Total 44,853,624 $           60,264,669 $     105,118,293 $ 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, 2023:

Nonspendable:

Prepaid  16,243 $
Total Nonspendable $            16,243
Restricted:

Governmental Funds:

Restricted cash and investments 1,651,438 $
Special Sales Tax 2,479,302
Asset Forfeiture 703,710
Gas tax 540
Federal & State Grant Funds  1,919,816
Total Restricted $      6,754,806
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
 Prepaids – represents non‐spendable amounts classified as prepaid expense.

City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
77 8.  NET POSITION/ FUND BALANCES, Continued
Restricted
 Restricted cash and investments – represents amounts restricted for pension costs.  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, 2023
Major Funds:

CDBG Super NOFA Special Revenue Fund (140,918) $
Street Resurfacing Capital Projects Fund (26,132)
Non‐Major Funds:

Special Revenue Funds
MCOG Overall Work Plan (3,640)
Developer Deposit Accounts  (6,325)
Capital Project Funds:

Coastal Trail (60,545)
Total (237,560) $
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, 2023
78 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, 2023:

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

General Fund 384,191 $             ‐ $
Street Resurfacing Capital Projects ‐                             80,616 Total Major Funds 384,191                80,616
Nonmajor Funds:

Special Revenue Funds
Parking In‐lieu Fees 1,157
Gas tax ‐                             83,574
RMRA  ‐                             81,287
MCOG Overall Work Plan ‐                             20,098 State and Federal Grant Funds 30,867
Capital Project Funds:

Coastal Trail  ‐                             86,592
Total Nonmajor Funds ‐                             303,575 Total $             384,191 384,191 $
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
79 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, 2023:

Transfers In  Transfers Out
Governmental Funds
Major Funds:

General Fund 154,641 $            551,224 $
CDBG Program Income Special Revenue Fund ‐                             48,285 Speical Sales Tax Special Revenue Fund ‐                             411,202 CDBG Super NOFA Special Revenue Fund 48,285                  ‐ Street Resurfacing Capital Projects 200,000                ‐ Total Major Funds 402,926                1,010,711
Non‐major Funds:

Special Revenue Funds
RMRA ‐                             100,000
Asset Forfeiture 551,224                108,230
MCOG Overall Work Plan ‐                             4,641 State and Federal Grant Funds 75,400
Coastal Trail 511,202                ‐
Total Non‐major Funds 1,062,426            288,271
Internal Service Funds
Building Maintenance ‐                             200,000 Information Technology Fund ‐                             ‐ Fleet Services 183,630                ‐
Total Internal Service Funds 183,630                200,000 Total Governmental Funds 1,648,982            1,498,982 Proprietary Funds
Major Enterprise Funds
Water ‐                             75,000
Sewer ‐                             75,000
Total Proprietary Funds ‐                             150,000 Total Transfers $         1,648,982 1,648,982 $

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, 2023
80 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 2022/22 were as follows:

Insurance Program Premium
Workers Compensation 206,307 $
General & Auto Liability 240,726
Property, Flood & Earthquake 269,105
$                 716,138
Claims Paid by the City for the 2022/21 fiscal year:

Insurance Program Claims
Workers' Compensation 31,958 $
Liability and Property 4,097
$                   36,055
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
81 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, 2023, 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% 7.76%
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 18.17% 12.78%
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, 2023
82 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, 2023, the contributions recognized as part of pension expense for each Plan were as follows:

Miscellaneous Plans Safety  Plans
Contributions ‐ employer 321,465 $                              $                             427,837 Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2023, 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 3,064,833 $
Safety Plans 2,399,173
Total Net Pension Liability 5,464,006 $
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, 2022, 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, 2021 rolled forward to June 30, 2022 using standard update procedures. The City's proportion of the net pension liability was based on a projection of the City's long‐term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. 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, 2023 and 2022 was as follows:

Miscellaneous Safety Total
Proportion ‐ June 30, 2022 0.16609% 0.09104% 0.09816%
Proportion ‐ June 30, 2023 0.06550% 0.03491% 0.11739%
Change ‐ Increase/(Decrease) ‐0.10059% ‐0.05613% 0.01923% City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
83 11.  PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
For the year ended June 30, 2023, the City recognized pension expense of $3,861,046. At June 30, 2023, 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 314,057 $        ‐ $                241,909 $        ‐ $                555,966 $        ‐ $ Differences between expected and actual
experiences              ‐ 20,326                   73,240              ‐                   93,566              ‐ Differences between projected and actual
investment earnings 561,396           ‐                   378,863           ‐                   940,259           ‐ Differences between the employer's
contributions and proportionate share of the         263,451 2,426,573           2,355,307        254,599           4,781,880        518,050 Change in employer's proportion              3,530,705 55,191       10,366              3,033,105       65,557              6,563,810 Pension contributions subsequent to
measurement date           ‐ 321,465                   427,837           ‐                   749,302           ‐ Total 3,699,008 $     3,794,156 $    3,487,522 $     3,287,704 $    7,186,530 $     7,081,860 $ Miscellaneous Plan Safety Plan Total
$7,081,860  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, 2024.    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 (345,247) $          (244,744) $        (589,991) $ 2024 (242,558)             (127,975)           (370,533) 2025 (172,178)             (86,410)              (258,588) 2026 343,369              231,111             574,480
2027 ‐                       ‐                     ‐
Thereafter ‐                       ‐                     ‐ $          (228,018) (416,614) $        (644,632) $
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
84 11.  PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Actuarial Assumptions ‐The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:

Miscellaneous Safety ‐ Police
PEPRA ‐
Miscellaneous
PEPRA Safety ‐
Police Fire Safety
Valuation Date 30‐Jun‐21 30‐Jun‐21 30‐Jun‐21 30‐Jun‐21 30‐Jun‐21 Measurement  30‐Jun‐22 30‐Jun‐22 30‐Jun‐22 30‐Jun‐22 30‐Jun‐22 Actuarial Cost Method
Actuarial Assumptions:

Discount Rate 6.90% 6.90% 6.90% 6.90% 6.90%
Inflation 2.30% 2.30% 2.30% 2.30% 2.30%
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, 2023 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 6.90 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 6.90 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 6.90 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, 2023
85 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.

Asset Class
Current Target
Allocation
Real Return
Years 1 ‐ 101,2
Global equity ‐ cap‐weighted 30.0% 4.45%
Global equity non‐cap‐weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage‐backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage ‐5.0% ‐0.59%
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%

5.90% 6.90% 7.90%
Employer's Net Pension Liability/(Asset) ‐ Miscellaneous 6,352,8              3,064,833 80          359,586 Employer's Net Pension Liability/(Asset) ‐ Safety 5,098,911              2,399,173          192,748 Employer's Net Pension Liability/(Asset) ‐ Total 11,451,791 $         5,464,006 $      552,334 $ 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, 2023
86 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, 2023, expenditures of $139,771 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, 2023
87 12.  OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued Employees Covered by benefit terms
At June 30, 2023, the following employees were covered by the benefit terms:

Active employees  10
Inactive employees or beneficiaries currently receiving benefits  37 Inactive employees entitled to, but not yet receiving benefits  ‐ Total Number of participants   47
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, 2023, the City’s cash contributions were $5,000 in payments to the trust, $420,544 cash benefit payments, and the estimated implied subsidy was $37,000 resulting in total payments of $462,544.

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2022 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2022 that was rolled forward to determine the June 30, 2023 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, 2022

6.25% at June 30, 2022
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‐2021 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, 2023
88 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 49% 4.56%
Fixed Income 23% 1.56%
TIPS 5% ‐0.08%
Commodities 3% 1.22%
REITs 20% 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 6/30/2022* 5,738,153 $         3,424,057 $           2,314,096 $ Changes for the year
Service Cost 46,774                  ‐                                46,774 Interest 347,518                ‐                                347,518 Changes of benefit terms ‐                              ‐                                ‐ Actual vs. expected experience ‐                              ‐                                ‐ Assumption changes ‐                              ‐                                ‐ Contributions ‐ employer ‐                              454,289                  (454,289) Contributions ‐ employee ‐                              ‐                                ‐ Net investment income ‐                              (459,120)                459,120 Benefit payments (449,289)              (449,289)                ‐ Administrative expenses ‐                              (869)                         869 Net Changes (54,997)                 (454,989)                399,992 Balance at 6/30/2022** 5,683,156 $         2,969,068 $           2,714,088 $ *Mea s urement da te 6/30/2021
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
89 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 2023 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, 2023:
1% Decrease Current Rate 1% Increase
Change in Discount Rate 5.25% 6.25% 7.25%
Net OPEB Liability 3,321,483 $         2,714,088 $         2,199,274 $ 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, 2023 (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 2,130,830 $         2,714,088 $         3,404,247 $ 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, 2023)
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
90 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, 2023, the City recognized OPEB expense of $139,771. As of fiscal year ended June 30, 2023, 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 ‐ $                      18,255 $
Changes in assumptions ‐                          16,402 Net difference between projected and actual
earnings on plan invesments 240,358                 ‐
Employer contributions made subsequent to the
measurement date 462,544                 ‐
Total $             34,657 702,902 $
The $462,544 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2023 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2024. Other amounts reported as deferred outflows of resources related to OPEB will be recognized as expense as follows:

Fiscal Year
Ended June 30,
Deferred
Outflow/(Inflows)
of Resources
2024 7,941 $
2025 39,880
2026 23,203
2027 134,677
2028 ‐
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, 2023
91 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, 2023:

Balance Balance Due Within
June 30, 2022 Additions Retirements June 30, 2023 One Year Trust Activities:
2015 Refunding Tax Allocation Bonds 3,015,000 $      ‐ $                  (170,000) $      2,845,000 $        165,000 $ 2015 Refunding Tax Allocation Bonds Discount (24,092)             ‐                     1,812               (22,280) Total trust fund debt $      ‐ 2,990,908 $                  (168,188) $      2,822,720 $        165,000 $ Deferred outflows:
2015 Refunding Tax Allocation Bonds Deferred
Loss 69,973               (5,183)              64,790                 5,182 City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2023
92 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, 2023 was $3,015,000.

Year Ending
June 30,
Principal Interest Principal Interest Principal Interest 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 190,000                   64,550                        (1,620)                    ‐                             188,380                 64,550 2029‐2033 1,015,000                234,056                     (8,100)                    ‐                             1,006,900             234,056 2034‐2038 945,000                   62,806                        (6,080)                    ‐                             938,920                 62,806 2039‐2043 ‐                                 ‐                                   ‐                              ‐                             ‐                              ‐ Total 2,845,000 $             669,937 $                  (22,280) $               ‐ $                         2,822,720 $          669,937 $ Due within one year 165,000 $                83,200 $                    (1,620) $                 ‐ $                         163,380 $              83,200 $ Due after one year 2,680,000                586,737                     (20,660)                  ‐                             2,659,340             586,737 Total 2,845,000 $             669,937 $                  (22,280) $               ‐ $                         2,822,720 $          669,937 $ 2015 Refunding Bonds
Discount Total
Fiduciary Activities
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 2022/23 no claims were disallowed.

Commitments
The City’s unexpended contractual commitments as of June 30, 2023 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, 2023
93 15.  NEW ACCOUNTING PRONOUNCEMENTS
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 implementation of this statement did not have an effect on the financial statements.

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 implementation of this statement did not have an effect on the financial statements.

The GASB has issued Statement No. 99, "Omnibus 2022." The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The requirements related to leases, PPPs, and SBITAs will take effect for financial statements starting with the fiscal year that ends June 30, 2023. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 will take effect for financial statements starting with the fiscal year that ends June 30, 2024.

The GASB has issued Statement No. 100, "Accounting Changes and Error Corrections—an amendment of GASB Statement No. 62." The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2024.

The GASB has issued Statement No. 101, "Compensated Absences." The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends December 31, 2024. 94 This page intentionally left blank.

REQUIRED SUPPLEMENTARY INFORMATION
95 City of Fort Bragg, California
for the Measurement Periods Ended June 30,
2022 2021 2020 2019 2018 2017
Total OPEB Liability
Service Cost $ 74,649 46,774 $ 81,253 $ 104,512 $ 111,530 $ 119,019 $ Interest on the total OPEB liability 381,864 347,518 383,562 378,816 366,137 353,775 Experience (Gains)/Losses - - - (287,306) - -
Actual vs. expected experience (63,893) - - - - -
Changes of assumptions (26,853) - (96,029) 218,506 - -
Benefit payments (420,407) (449,289) (354,262) (287,648) (277,993) (286,331) Net change in total OPEB liability (54,997) (54,640) 14,524 126,880 199,674 186,463 Total OPEB liability ‐ beginning 5,792,793 5,738,153 5,778,269 5,651,389 5,451,715 5,265,252 Total OPEB liability ‐ ending (a) $ 5,738,153 5,683,156 $ 5,792,793 $ 5,778,269 $ 5,651,389 $ 5,451,715 $ Plan fiduciary net position
Contributions ‐ employer $ 420,407 454,289 $ 359,262 $ 292,648 $ 492,993 $ 534,256 $ Contributions ‐ employee - - - - - -
Actual investment income 738,656 (459,120) 91,502 150,805 164,052 172,839 Administrative expense (1,017) (869) (1,266) (522) (3,826) (883) Benefit payments (420,407) (449,289) (354,262) (287,648) (277,993) (286,331) Net change in plan fiduciary net position 737,639 (454,989) 95,236 155,283 375,226 419,881 Plan fiduciary net position ‐ beginning 2,686,418 3,424,057 2,591,182 2,435,899 2,060,673 1,640,792 Plan fiduciary net position ‐ ending (b) $ 3,424,057 2,969,068 $ 2,686,418 $ 2,591,182 $ 2,435,899 $ 2,060,673 $ Net OPEB liability ‐ ending (a) ‐ (b) $ 2,314,096 2,714,088 $ 3,106,375 $ 3,187,087 $ 3,215,490 $ 3,391,042 $ Covered payroll $ 1,132,693 1,040,847 $ 1,893,338 $ 1,834,372 $ 2,730,484 $ 2,197,777 $ Net OPEB liability as a percentage of
covered payroll 260.70% 204.30% 164.07% 173.74% 117.76% 154.29% Notes to Schedule
Required Supplementary Information - Schedule of Changes in the Net OPEB Liability and Related Ratios 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. 96 City of Fort Bragg, California
Required Supplementary Information - Net OPEB Liability Schedule of Contributions June 30, 2023
Fiscal Year Ended June 30, 2023 2022 2021 2020 2019 2018 Actuarially Determined Contribution (ADC) 230,888 $ 343,213 $ 348,790 $ 374,658 $ 375,390 $ 559,726 $ Contributions in relation to the ADC 462,544 454,289 425,407 359,262 292,648 492,993 Contribution deficiency ( excess) (231,656) $ (111,076) $ (76,617) $ 15,396 $ 82,742 $ 66,733 $ Covered payroll 7,773,383 1,040,847 1,132,693 1,893,338 1,834,372 2,730,484 Contributions as a percentage of covered payroll 59.80% 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. 97 City of Fort Bragg, California
Required Supplementary Information - Schedule of Contributions Miscellaneous Plan
Last 10 Fiscal Years*
2023 2022 2021 2020 2019 2018 2017
Contractually required contribution (actuarially
determined) $ 628,487 321,465 $ 540,516 $ 514,099 $ 455,093 $ 430,051 $ 392,300 $ Contributions in relation to the actuarially
determined contributions (628,487) (321,465) (540,516) (514,099) (394,321) (430,051) 392,300 Contribution deficiency (excess) - $ - $ - $ - $ 60,772 $ - $ 784,600 $ Covered payroll $ 2,614,508 3,129,486 $ 2,327,258 $ 2,661,903 $ 2,833,921 $ 2,641,425 $ 2,598,675 $ Contribution as a percentage of covered payroll 10.27% 24.04% 23.23% 19.31% 16.06% 16.28% 15.10% Notes to Schedule
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. * 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 Contributions Safety Plan
Last 10 Fiscal Years*
2023 2022 2021 2020 2019 2018 2017
Contractually required contribution (actuarially
determined) $ 620,401 427,837 $ 558,561 $ 637,647 $ 471,193 $ 298,630 $ 387,206 $ Contributions in relation to the actuarially
determined contributions (620,401) (427,837) (558,561) (637,647) (471,193) (298,630) (387,206) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ Covered payroll $ 1,119,662 1,384,365 $ 1,071,290 $ 1,145,799 $ 1,048,497 $ 1,268,709 $ 1,245,549 $ Contribution as a percentage of covered payroll 30.90% 55.41% 52.14% 55.65% 44.94% 23.54% 31.09% Notes to Schedule
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. * 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 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*
2023 2022 2021 2019 2018 2017 2016
Plan's Proportion of the Net Pension Liability/(Asset) 0.06550% 0.16609% 0.13012% 0.12508% 0.12037% 0.11653% 0.11210% Plan's Proportionate Share of the Net Pension
Liability/(Asset) $ 3,153,761 3,064,833 $ 5,488,390 $ 5,008,648 $ 4,593,661 $ 4,593,661 $ 3,894,091 $ Plan's Covered Payroll $ 2,327,258 2,614,508 $ 2,661,903 $ 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 117.22% 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 87.29% 86.24% 74.96% 76.25% 76.38% 76.38% 82.66% Plan's Proportionate Share of Aggregate Employer
Contribution $ 777,490 1,092,169 $ 734,213 $ 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. 100
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*
2023 2021 2020 2019 2018 2017 2016
Plan's Proportion of the Net Pension Liability/(Asset) 0.03491% 0.09104% 0.07793% 0.07899% 0.07811% 0.08042% 0.08218% Plan's Proportionate Share of the Net Pension
Liability/(Asset) $ 3,194,968 2,399,174 $ 5,192,221 $ 4,931,069 $ 4,667,131 $ 4,165,367 $ 3,320,431 $ Plan's Covered Payroll 1,119,662 $ 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 214.28% 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 87.73% 82.87% 69.95% 70.68% 69.76% 70.60% 75.04% Plan's Proportionate Share of Aggregate Employer
Contribution $ 826,040 1,144,186 $ 625,589 $ 637,647 $ 578,574 $ 387,206 $ 315,525 $ 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. 101
This page intentionally left blank.
102

COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
103
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).
104
City of Fort Bragg, California
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2023
Special Capital
Revenue Funds Projects Funds
ASSETS
Cash and investments $ 48,039 3,409,216 $ 3,457,255 $
Receivables:

Intergovernmental - 797,813 797,813
Loans/Notes receivable 743,190 - 743,190
Total assets $ 48,039 4,981,237 $ 5,029,276 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable and accrued liabilities 195,952 $ 21,992 $ 217,944 $ Due to other funds 216,983 86,592 303,575
Total liabilities: 108,584 412,935 521,519
Deferred inflows of resources:

Unavailable revenue 521,782 - 521,782
Total deferred inflows of resources - 521,782 521,782
Total liabilities and deferred inflows 108,584 934,717 1,043,301 Fund Balances:

Restricted - 2,624,066 2,624,066
Assigned - 1,432,419 1,432,419
Unassigned (deficit) (9,965) (60,545) (70,510)
Total fund balances 4,046,520 3,985,975 (60,545)
Total liabilities, deferred inflows and fund balances $ 48,039 4,981,237 $ 5,029,276 $ Funds Totals
Non-Major
Governmental Funds
105
City of Fort Bragg, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2023
Special Capital
Revenue Funds Projects Funds
REVENUES:

Taxes and assessments $ - 66,990 $ 66,990 $
Fines and forfeitures 103,905 - 103,905
Intergovernmental - 2,645,353 2,645,353
Use of money and property - 43,184 43,184
Charges for services 110,262 - 110,262
Total revenues - 2,969,694 2,969,694
EXPENDITURES:

Current:

General government - 713 713
Public safety - 338,252 338,252
Public works 415,659 - 415,659
Community development - 1,059,571 1,059,571
Capital outlay 465,650 - 465,650
Total expenditures 465,650 1,814,195 2,279,845
REVENUES OVER (UNDER) EXPENDITURES (465,650) 1,155,499 689,849 OTHER FINANCING SOURCES (USES):

Transfers in 511,202 551,224 1,062,426
Transfers out - (288,271) (288,271)
Total other financing
sources (uses) 511,202 262,953 774,155

REVENUES AND OTHER FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND OTHER
FINANCING (USES) 45,552 1,418,452 1,464,004
FUND BALANCES:

Beginning of year (106,097) 2,628,068 2,521,971
End of year $ (60,545) 4,046,520 $ 3,985,975 $
Funds Totals
Non-Major
Governmental Funds
106
Fund
General Plan Maintenance Fee
Housing
Parking
Parking In-Lieu Fees
Parkland Monitoring and Reporting
State Tobacco License Fee
State Disability Access Fee
Asset Forfeiture
(continued)

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

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

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

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

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

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

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

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

To account for monies obtained from seized assets of criminal activities. The funds are used solely to support law enforcement purposes.
107
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
Developer Deposits Accounts
Casper JPA Transfer Station
(continued)
Description
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
To account for monies received from developers to cover City costs associated with development projects.

The Caspar transfer site is a joint city/county operation and is currently contracted to SWOW (solid waste of Willits) and overseen by the Caspar Coordinating Committee. This fund is the result of a $3 gate fee and has historically been dedicated to efforts around relocating and building a more permanent, regional transfer station.

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 the revenue received from traffic fines which is restricted to City street repairs and traffic safety.

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

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

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

To account for local transportation funds awarded for
transportation planning and technical assistance.
108
Fund
SB 1383
Noyo Harbor Blue Economy
Housign Successor Agency
Community Development Block Grant
Funds Unclassified Program Income
COPS AB1913
Bulletproof Vest Partnership Grant
STP D1 Streets & Highways Allocation
State Parks Prop 84 Grant
HCD HOME Grant
Other State Grants
(concluded)
Visioning, Resiliency and Implementation Plan (Noyo Harbor Plan) that will support a strategic climate resilience planning effort, and the findings will be integrated into an LCP update for both the City of Fort Bragg and County of Mendocino.

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

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.

Accounts for the SB 1383 regulatory reimbursements to the City of Fort Bragg from the Solid waste provider. The City shall use the reimbursements to offset expenses, including but not limited to, staffing costs related to City programs. Pilot studies, education and outreach and other activities involved in compliance with SB 1383 regulatory reimbursements.

Federal and State Grant Special Revenue Funds:

The Community Development Block Grant program provides
competitive grants to enables local government to undertake a wide range of activities intended to create suitable living environments, provide decent affordable house, and create economic opportunities, primarily for persons of low and moderate income.

NON-MAJOR SPECIAL REVENUE FUNDS, Continued
Description
To account for 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 Federal Funding to be used to re-establish a Housing Rehabilitation Loan program for qualified low- and moderate-income homeowners.

To account for all other State Grants. Includes grant monies recevied from the State of California for purchase of off highway vehicles for use by the City Police Department.
109
City of Fort Bragg, California
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2023
General Plan
Maintenance Parking
Fee Housing Parking In-lieu Fees
ASSETS
Cash and investments $ 76,233 147,081 $ 35,766 $ - $
Receivables:

Intergovernmental - - - -
Loans/Notes receivable - - - -
Other receivable - - - -
Total assets $ 76,233 147,081 $ 35,766 $ - $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable 636 $ - $ - $ 911 $
Due to other funds - - - 1,157
Total liabilities: - 636 - 2,068
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources: - - - -
Total liabilities and deferred inflows - 636 - 2,068
Fund Balances:

Restricted - - - -
Assigned 76,233 35,766 (2,068) 146,445
Unassigned (deficit) - - - -
Total fund balances 76,233 146,445 35,766 (2,068)
Total liabilities deferred inflows and fund balances $ 76,233 147,081 $ 35,766 $ - $ 110
Waste
Parkland State State Construction/ Management
Monitoring/ Tobacco Disability Asset Demolition Community Reporting License Fee Access Fee Forfeiture Ordinance Benefit Pymt Gas Tax $ 22,944 132,076 $ 22,936 $ 715,705 $ 95,091 $ 269 $ - $ - - 11 - - - 84,114
- - - - - - -
- - - - - - -
$ 22,944 132,076 $ 22,947 $ 715,705 $ 95,091 $ 269 $ 84,114 $ $ - - $ 3,850 $ 11,995 $ - $ - $ - $
- - - - - - 83,574
- - 3,850 11,995 - - 83,574
- - - - - - -
- - - - - - -
- - 3,850 11,995 - - 83,574
- - - 703,710 - - 540
132,076 22,944 19,097 - 95,091 269 -
- - - - - - -
22,944 132,076 19,097 703,710 95,091 269 540
$ 22,944 132,076 $ 22,947 $ 715,705 $ 95,091 $ 269 $ 84,114 $ (continued)
111
City of Fort Bragg, California
Combining Balance Sheet
Nonmajor Special Revenue Funds, continued
June 30, 2023
MCOG
Traffic & Fire Overall Work
RMRA Safety Equipment Plan
ASSETS
Cash and investments $ - - $ 273,277 $ - $
Receivables:

Intergovernmental 15,799 - - 16,458
Loans/Notes receivable - - - -
Other receivable - - 3,729 -
Total assets $ - 15,799 $ 277,006 $ 16,458 $

LIABILITIES, DEFERRED INFLOWS

AND FUND BALANCES
Liabilities:

Accounts payable - $ - $ - $ - $
Due to other funds 81,287 - - 20,098
Total liabilities: - 81,287 - 20,098
Deferred inflows of resources:

Unavailable revenue - - - -
Total deferred inflows of resources: - - - -
Total liabilities and deferred inflows - 81,287 - 20,098 Fund Balances:

Restricted - - - -
Assigned - (65,488) 277,006 -
Unassigned (deficit) - - - (3,640)
Total fund balances - (65,488) 277,006 (3,640)
Total liabilities deferred inflows and fund balance $ - 15,799 $ 277,006 $ 16,458 $ 112
OJ Park Developer Casper JPA Noyo Housing Federal and
Maintenance Deposit Transfer Habor Blue Successor State Grant Fund Accounts Station SB 1383 Economy Agency Funds Total $ 32,222 2,110 $ 332,908 39,705 - $ 189,552 $ 1,291,341 $ 3,409,216 $ - - - - - - 681,431 797,813
- - - - - 570,375 172,815 743,190
- - 17,723 - 9,566 - - 31,018
$ 32,222 2,110 $ 350,631 $ 39,705 $ 9,566 $ 759,927 $ 2,145,587 $ 4,981,237 $ $ 38,547 - $ - $ - $ 2,500 - 137,513 $ 195,952 $
- - - - - - 30,867 216,983
38,547 - - - 2,500 - 168,380 412,935
- - - - - 320,375 201,407 521,782
- - - - - 320,375 201,407 521,782
38,547 - - - 2,500 320,375 369,787 934,717
- - - - - - 1,919,816 2,624,066
2,110 - 350,631 39,705 7,066 439,552 (144,016) 1,432,419 (6,325) - - - - - - (9,965)
(6,325) 2,110 350,631 39,705 7,066 439,552 1,775,800 4,046,520 $ 32,222 2,110 $ 350,631 $ 39,705 $ 9,566 $ 759,927 $ 2,145,587 $ 4,981,237 $ (concluded)
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, 2023
General Plan
Maintenance Parking
Fee Housing Parking In-lieu Fees
REVENUES:

Taxes and assessments $ - - $ - $ - $
Fines and forfeitures - - - -
Intergovernmental - - - -
Use of money and property 4,214 2,089 975 -
Charges for services 3,720 - - -
Total revenues 2,089 7,934 975 -
EXPENDITURES:

Current:

General government 550 - - -
Public safety - - - -
Public works - - - -
Community development 1,500 - - 2,068
Total expenditures 1,500 550 - 2,068

REVENUES OVER (UNDER)
EXPENDITURES 589 7,384 975 (2,068)
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) 589 7,384 975 (2,068)
FUND BALANCES (DEFICITS):

Beginning of year 139,061 75,644 34,791 -
End of year $ 76,233 146,445 $ 35,766 $ (2,068) $
114
Waste
Parkland State State Construction/ Management
Monitoring/ Tobacco Disability Asset Demolition Community Reporting License Fee Access Fee Forfeiture Ordinance Benefit Pymt Gas Tax $ - - $ - $ - $ - $ - $ 13,715 $
- - - 5,087 94,493 - -
2,768 3,624 - - - - 190,913
3,598 607 606 17,619 - - 539
- - - - - - -
3,375 3,598 4,230 22,706 94,493 - 205,167
- - 163 - - - -
- - - 173,927 - - -
- - - - - - 256,022
- - - - - - -
- - 163 173,927 - - 256,022
3,375 3,598 4,067 (151,221) 94,493 - (50,855)
- - - 551,224 - - -
- - - (108,230) - - -
- - - 442,994 - - -
3,375 3,598 4,067 291,773 94,493 - (50,855)
128,478 19,569 15,030 411,937 598 269 51,395
$ 22,944 132,076 $ 19,097 $ 703,710 $ 95,091 $ 269 $ 540 $ (continued)
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, 2023
MCOG
Traffic & Fire Overall Work
RMRA Safety Equipment Plan
REVENUES:

Taxes and assessments $ - - $ 53,275 $ - $
Fines and forfeitures - 4,325 - -
Intergovernmental 172,829 - - 6,708
Use of money and property - - 7,136 -
Charges for services - - - -
Total revenues 4,325 172,829 60,411 6,708
EXPENDITURES:

Current:

General government - - - -
Public safety 4,325 - - -
Public works 159,637 - - -
Community development - - - -
Total expenditures 4,325 159,637 - -

REVENUES OVER (UNDER)
EXPENDITURES - 13,192 60,411 6,708
OTHER FINANCING SOURCES (USES):

Transfers in - - - -
Transfers out (100,000) - - (4,641)
Total other financing
sources and uses - (100,000) - (4,641)

REVENUES AND OTHER FINANCING

SOURCES OVER (UNDER)

EXPENDITURES AND OTHER
FINANCING (USES) - (86,808) 60,411 2,067
FUND BALANCES (DEFICITS):

Beginning of year - 21,320 216,595 (5,707)
End of year $ - (65,488) $ 277,006 $ (3,640) $
116
OJ Park Developer Casper JPA Noyo Housing Federal and
Maintenance Deposit Transfer Habor Blue Successor State Grant Fund Account Station SB 1383 Economy Agency Funds Totals $ - - $ - $ - $ - $ - $ - $ 66,990 $
- - - - - - - 103,905
- - - 45,172 9,566 250,000 1,963,773 2,645,353
- - 667 - - 5,134 - 43,184
- - 106,542 - - - - 110,262
- - 107,209 45,172 9,566 255,134 1,963,773 2,969,694
- - - - - - - 713
- - - - - - 160,000 338,252
- - - - - - - 415,659
- - 32,759 5,467 2,500 - 1,015,277 1,059,571
- - 32,759 5,467 2,500 - 1,175,277 1,814,195
- - 74,450 39,705 7,066 255,134 788,496 1,155,499
- - - - - - 551,224 -
- - - - - - (75,400) (288,271)
- - - - - - (75,400) 262,953
- - 74,450 39,705 7,066 255,134 713,096 1,418,452
2,110 276,181 - (6,325) - 184,418 1,062,704 2,628,068
$ (6,325) 2,110 $ 350,631 $ 39,705 $ 7,066 $ 439,552 $ 1,775,800 $ 4,046,520 $ (concluded)
117
City of Fort Bragg, California
Combining Balance Sheet
Federal and State Grant Special Revenue Funds
June 30, 2023
STP D1
CDBG Streets and State Parks
Unclassified Highway Prop 84
Program Income COPS Allocation Grant
ASSETS
Cash and investments $ 21,132 7,025 $ 1,266 $ - $
Restricted cash and investments - -
Receivables:

Intergovernmental 62,661 - 5,460 591
Loans/Notes receivable - - - -
Total assets $ 83,793 7,025 $ 6,726 $ 591 $

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:

Restricted 7,025 83,793 6,726 591
Unassigned (deficit) - - - -
Total fund balances 83,793 7,025 6,726 591
Total liabilities deferred inflows and fund balances $ 83,793 7,025 $ 6,726 $ 591 $ 118
HCD
HOME Other State CDBG Grant
Grant Grants CDBG Grant Covid Totals
$ (66,875) (390,521) $ 262,646 1,456,668 1,291,341 $
453,901 56,750 61,995 40,073 681,431
172,815 - - 172,815
$ (10,125) 236,195 $ 324,641 $ 1,496,741 $ 2,145,587 $
$ 133,891 - $ 2,030 $ 1,592 137,513 $
- 30,867 - - 30,867
133,891 30,867 2,030 1,592 168,380
201,407 - - - 201,407
- 201,407 - - 201,407
133,891 232,274 2,030 1,592 369,787
3,921 322,611 1,495,149 1,919,816
(144,016) - - - (144,016)
(144,016) 3,921 322,611 1,495,149 1,775,800
$ (10,125) 236,195 $ 324,641 $ 1,496,741 $ 2,145,587 $
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, 2023
STP D1
CDBG Streets and State Parks
Unclassified Highway Prop 84
Program Income COPS Allocation Grant
REVENUES:

Intergovernmental $ 227,932 - $ - $ - $
Total revenues 227,932 - - -
EXPENDITURES:

Current:

Public safety 160,000 - - -
Community development - - - -
Total expenditures 160,000 - - -

REVENUES OVER (UNDER)
EXPENDITURES 67,932 - - -
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) 67,932 - - -
FUND BALANCES (DEFICIT):

Beginning of year 7,025 15,861 6,726 591
End of year $ 83,793 7,025 $ 6,726 $ 591 $
120
HCD Other
HOME State CDBG Grant
Grant Grants CDBG Grant COVID Totals
$ 39,646 - $ 445,517 $ 1,250,678 $ 1,963,773 $
39,646 - 445,517 1,250,678 1,963,773
- - - - 160,000
162,070 315,062 538,145 - 1,015,277
162,070 - 315,062 538,145 1,175,277
(122,424) - 130,455 712,533 788,496
- - - - -
(75,400) - - - (75,400)
(75,400) - - - (75,400)
(197,824) - 130,455 712,533 713,096
3,921 192,156 53,808 782,616 1,062,704
$ (144,016) 3,921 $ 322,611 $ 1,495,149 $ 1,775,800 $
121
City of Fort Bragg, California
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2023
Coastal
Trail
ASSETS
Cash and investments $ 48,039
Total assets $ 48,039

LIABILITIES

AND FUND BALANCES
Liabilities:

Accounts payable 21,992 $
Due to other funds 86,592
Total liabilities: 108,584
Deferred inflows of resources:

Unavailable revenue -
Total deferred inflows of resources: -
Total liabilities and deferred inflows 108,584
Fund Balances:

Unassigned (deficit) (60,545)
Total fund balances (60,545)
Total liabilities and fund balances $ 48,039
122
City of Fort Bragg, California
Nonmajor Capital Projects Fund
For the year ended June 30, 2023
Coastal
Trail
REVENUES:

Intergovernmental $ -
Total revenues -
EXPENDITURES:

Current:

Community development -
Capital outlay 465,650
Total expenditures 465,650

REVENUES OVER (UNDER)
EXPENDITURES (465,650)
OTHER FINANCING SOURCES (USES):

Transfers in 511,202
Transfers out -
Total other financing
sources and uses 511,202

REVENUES AND OTHER FINANCING

SOURCES OVER (UNDER)

EXPENDITURES AND OTHER
FINANCING (USES) 45,552
FUND BALANCES (DEFICITS):

Beginning of year (106,097)
End of year $ (60,545)
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
June 30, 2023
Information
Building Technology Fleet
Maintenance Fund Services Totals
ASSETS
Current assets:

Cash and investments 568,926 $ 87,041 $ 470,070 $ 1,126,037 $ Total current assets 87,041 568,926 470,070 1,126,037
Noncurrent assets:

Capital assets, net 60,835 238,471 1,878,030 2,177,336
Total noncurrent assets 238,471 60,835 1,878,030 2,177,336 Total assets $ 325,512 629,761 $ 2,348,100 $ 3,303,373 $

LIABILITIES AND NET POSITION
Current liabilities:

Accounts payable 1,252 $ 154,671 $ 293,119 449,042 $
Accrued liabilities - 7,528 - 7,528
Total current liabilities 162,199 1,252 293,119 456,570 Noncurrent liabilities:

Compensated absences - - - -
Total liabilities 162,199 1,252 293,119 456,570
Net Position:

Net investment in capital assets 60,835 238,471 1,878,030 2,177,336 Unrestricted 567,674 (75,158) 176,951 669,467
Total net position 163,313 628,509 2,054,981 2,846,803
Total liabilities and net position $ 325,512 629,761 $ 2,348,100 $ 3,303,373 $ 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, 2023
Information
Building Technology Fleet
Maintenance Fund Services Totals
OPERATING REVENUES:

Interdepartmental charges 288,548 $ 577,972 $ 962,994 $ 1,829,514 $ Other 16,215 134 197 16,546
Total operating revenues 578,106 304,763 963,191 1,846,060 OPERATING EXPENSES:

Personnel services 186,906 178,926 139,192 505,024
Repairs and maintenance 22,469 1,862 72,845 97,176
Materials and supplies - 311,802 82,966 394,768
Contractual services - - 1,797 1,797
Depreciation 6,800 16,081 110,391 133,272
Total operating expenses 508,671 216,175 407,191 1,132,037 OPERATING INCOME (LOSS) 69,435 88,588 556,000 714,023
NET INCOME (LOSS) BEFORE TRANSFERS 69,435 88,588 556,000 714,023 Transfers in - - 183,630 183,630
Transfers out (200,000) - - (200,000)
Total transfers - (200,000) 183,630 (16,370)
Change in net position 69,435 (111,412) 739,630 697,653 NET POSITION (DEFICIT):

Beginning of year 739,921 93,878 1,315,351 2,149,150
End of year 628,509 $ 163,313 $ 2,054,981 $ 2,846,803 $ 126
City of Fort Bragg, California
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2023
Information
Building Technology Fleet
Maintenance Fund Services Totals
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from interfund services provided 304,763 $ 578,106 $ 963,191 $ 1,846,060 $ Cash paid to suppliers for goods and services (21,448) (180,313) 117,526 (84,235) Cash paid to employees for services (186,906) (178,300) (139,192) (504,398) Net cash provided (used) by operating activities 219,493 96,409 941,525 1,257,427

CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:

Transfers received - - 183,630 183,630
Transfers paid (200,000) - - (200,000)
Net cash provided (used) by noncapital financing activities - (200,000) 183,630 (16,370)

CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:

Acquisition and construction of capital assets (7,744) (239,180) (656,228) (903,152) Net cash (used) by capital and related financing activities (239,180) (7,744) (656,228) (903,152) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest on investments - - - -
Net cash provided by investing activities - - - -
Net increase (decrease) in cash and cash equivalents (19,687) (111,335) 468,927 337,905 CASH AND CASH EQUIVALENTS:

Beginning of year 680,261 106,728 1,143 788,132
End of year 568,926 $ 87,041 $ 470,070 $ 1,126,037 $
Reconciliation of income from operations to net
cash provided (used) by operating activities:

Operating income (loss) 88,588 $ 69,435 $ 556,000 $ 714,023 $ Adjustments to reconcile operating income
to net cash provided by operating activities:

Depreciation 6,800 16,081 110,391 133,272
(Increase) decrease in current assets:

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

Accounts payable 1,021 133,351 275,134 409,506
Accrued liabilities - 626 - 626
Net cash provided by operating activities $ 219,493 96,409 $ 941,525 $ 1,257,427 $ 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)
2014 2015 2016 2017
Governmental activities
Net investment in capital assets 31,944 $       35,914 $       38,647 $       39,523 $ Restricted 5,987            2,289            3,536            2,513 Unrestricted (deficit) 232               (203)              (399)              (1,518) Total governmental activities net position $       38,625 38,163 $       41,784 $       40,518 $ Business‐type activities
Net investment in capital assets 30,531 $       30,047 $       30,503 $       31,597 $ Restricted 101               108               108               108 Unrestricted  (deficit) 3,603            3,649            4,232            6,912 Total business‐type activities net position $       33,804 34,235 $       34,843 $       38,617 $ Primary government
Net investment in capital assets 62,475 $       65,961 $       69,150 $       71,119 $ Restricted 6,088            3,022            3,644            2,621 Unrestricted (deficit) 3,835            3,466            3,833            5,395 Total primary government net position $       72,429 72,398 $       76,627 $       79,135 $ Source: City Finance Department
$‐
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
2014 2015 2016 2017 2018
Governmental activities Business‐type activities
130
2018 2019 2020 2021 2022 2023
$       41,400 42,293 $       42,102 $       41,686 $       30,092 $         42,156 $ 1,279 3,758            1,922            2,947            2,578              6,755 (2,456) (5,115)           (5,026)           (4,140)           5,304              (4,057) $       40,223 40,935 $       38,998 $       40,493 $       37,974 $         44,854 $ $       37,806 33,572 $       45,807 $       46,331 $       48,678 $         50,402 $ 108 108               108               108               108                 108 8,094 7,515            8,704            12,277          12,985            9,755 $       46,008 41,195 $       54,619 $       58,716 $       61,771 $         60,265 $ $       79,206 75,865 $       87,909 $       88,017 $       78,770 $         92,558 $ 1,387 3,866            2,030            3,055            2,686              6,863 5,638 2,400            3,678            8,137            18,289            5,698 $       86,231 82,131 $       93,617 $       99,209 $       99,745 $         105,119 $ 2019 2020 2021 2022 2023
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)
2014 2015 2016 2017
Expenses
Governmental activities:

General government 1,500 $        2,593 $        2,877 $        2,221 $ Public safety            3,663 3,851            4,187           4,388 Public works 2,176            2,435            2,108           2,750 Community development 3,485            840               1,700           1,018 Parks and recreation ‐                    ‐                    ‐                    38 Marketing and promotions ‐                    ‐                    ‐                    ‐ Interest and fiscal charges                 30 42                 26                 21 Total governmental activities expenses 11,054         9,561            10,898         10,434 Business‐type activities:

Water  2,539            2,286            2,264           2,158 Sewer 3,095            2,801            2,897           2,847 C.V. Starr Center 2,262            2,382            2,292           2,320 Total business‐type activities expenses 7,896            7,469            7,453           7,325 Total primary government expenses 18,950         17,030         18,351         17,760 Program revenues
Governmental activities:

Charges for services:

General government 2,851            2,809            2,818           1,967 Public safety                 50 72                 289              299 Public works 34                 102               344              558 Community development 58                 ‐                    30                 232 Operating grants and contributions 1,567            4,702            725              1,251 Capital grants and contributions 1,818            2,383            3,762           922 Total governmental activities program revenues 6,400            10,046         7,968           5,227 Business‐type activities:

Charges for services:

Water  2,229            2,496            2,624           2,683 Wastewater 3,004            3,194            3,332           3,305 C.V. Starr Center 635               706               722              696 Operating grants and contributions ‐                    ‐                    ‐                    ‐ Capital grants and contributions ‐                    ‐                    ‐                    ‐ Total business‐type activities program revenues 5,868            6,396            6,678           6,683 Total primary government program revenues 12,268         16,442         14,646         11,911 Net (Expense)/Revenue
Governmental activities (4,654) 485          (5,207) (2,930) Business‐type activities (2,028)          (1,073)          (775)             (642) Total primary government net expense (6,682)          (588)              (3,705)          (5,849) 132
2018 2019 2020 2021 2022 2023
$        2,384 2,804 $        2,623 $        3,581 $        4,515 $         2,999 $ 4,338 4,461           5,374           4,386           4,903            5,647 2,979 2,873           3,122           2,438           3,551            3,579 1,056 1,208           876              4,105           825                5,890 ‐ ‐                    ‐                    ‐                    ‐                     ‐ ‐ ‐                    186              93                 227                210 47 53                 5                   38                 438                532 10,804 11,399         12,186         14,641         14,459          18,857 1,920 2,034           1,676           1,688           2,677            3,034 2,674 2,569           2,302           3,043           3,942            4,727 2,722 2,386           2,081           1,229           2,145            2,593 7,316 6,989           6,059           5,960           8,764            10,354 18,120 18,388         18,245         20,601         23,223          29,211 1,108 1,324           880              978              1,584            1,874 371 365              290              252              319                309 1,155 1,049           1,980           1,583           2,006            1,801 293 520              ‐                    ‐                    ‐                     188 765 2,259              800              3,974           3,968            6,287 3,296 3,324           1,345           1,584           187                2,400 6,988 8,840           5,295           8,371           8,064            12,857 3,077 2,909           3,181           3,660           3,033            3,043 3,599 3,495           3,484           4,017           3,584            3,522 711 743              466              ‐                    983                639 ‐ ‐                    ‐                    ‐                    ‐                     ‐ ‐ ‐                    4,512           ‐                    646                ‐ 7,387 7,147           11,643         7,677           8,246            7,205 14,375 15,987         16,938         16,048         16,310          20,062 (3,817) (2,558)          (6,891)          (6,270)          (6,397)           (6,000) 70 158                 5,584           1,718           (519)              (3,149) (3,747) (2,400)          (1,307)          (4,552)          (6,916)           (9,149) (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)
2014 2015 2016 2017
Governmental activities:

Taxes:

Property taxes 943               909               1,007           1,084 Sales and use tax 2,490            2,523            2,458           2,414 Transient lodging tax 1,667            1,858            1,948           2,149 Franchise taxes 496               493               491              ‐ Other taxes 411               435               403              674 Use of money and property                 87 45                 113              (23) Unrealized gains and losses ‐                    ‐                    ‐                    ‐ Other general revenues 222               67                 120              151 Special Items            (507)
Transfer in (out) (1)                  (89)                (451)             (2,003) Extraordinary item: Redevelopment dissolution ‐                    ‐                    ‐                    ‐ Total governmental activities 6,273            6,283            6,089           3,940 Business‐type activities:

Property taxes 216               234               220              234 Sales and use tax 811               807               846              881 Use of money and property                 42 33                 27                 56 Other revenues 72                 161               271              1,242 Transfer in (out) 1                   89                 451              2,003 Total business‐type activities 1,133            1,333            1,815           4,416 Total primary government 7,406            7,616            7,904           8,356 Changes in Net Position
Governmental activities 1,619 6,768 3,159 (1,267)
Business‐type activities              260 (895)               1,040           3,774 Total primary government 724 $            7,028 $        4,199 $        2,507 $ Source: City Finance Department
134
2018 2019 2020 2021 2022 2023
1,075 1,035           1,157           1,152           1,214            1,208 1,728 1,785           2,743           3,127           3,427            3,322 2,640 2,619           2,204           3,322           3,445            3,192 ‐ ‐                    590              626              654                740 762 719              185              185              198                213 66 (110)                 107              112              ‐                     ‐ 195 ‐              228              (124)             (8)                   (278) 8 61                   24                 266              28                  832 ‐ ‐                    ‐                    ‐                    ‐                     ‐ (1,029) (898)          (1,573)          (901)             (1,939)           150 ‐ ‐                    ‐                    ‐                    ‐                     ‐ 5,445 5,210           5,665           7,765           7,019            9,380 249 236              236              263              269                305 879 915              945              1,100           1,211            1,175 168 98              178              115              104                312 77 272                 95                 ‐                    50                  ‐ 1,029 898           1,573           901              1,939            (150) 2,402 2,420           3,027           2,379           3,573            1,643 7,847 7,630           8,692           10,144         10,592          11,023 2,652 1,628 (1,226) 1,495 622 3,381
2,472 2,578           8,611           4,097           3,054            (1,506) $        4,100 5,230 $        7,385 $        5,592 $        3,676 $         1,874 $ (concluded)
135
2014 2015 2016 2017 2018
General Fund:

Nonspendable 185 $ 205 $ $              4 66 $                 94 $ Committed                     2,135 ‐            1,694
Unassigned 4,434 4,553               968 790               1,172 Total general fund 4,758 4,619               3,107 856            2,959 All Other Governmental Funds:

Restricted 4,598 2,914            2,530 3,536            3,758 Assigned 1,322 -            1,472 1,116            1,292 Unassigned (deficit) (1,441) (1,157)              731 (331)               (470) Total all other governmental funds 3,079 3,157            4,733 4,321            4,580 Total all governmental funds $ 7,837 7,776 $ $         7,839 5,177 $         7,539 $ 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
16,000
2014 2015 2016 2017 2018 2019
General Fund All Other Governmental Funds:
136
2019 2020 2021 2022 2023
$                 3 9 $                 7 $                 12 $              16 $ 2,160 1,682            2,679            2,679            2,679 529 1,451               1,498            2,401            1,628 2,692 3,142            4,184            5,092            4,324 1,922 1,267            2,947            6,078            6,755 1,426 3,005            814               1,790            3,948 (284) (16)              (248)              (144)              (292) 3,064 4,256            3,513            7,724            10,411 $         5,756 7,398 $         7,697 $         12,816 $       14,735 $ 2020 2021 2022 2023
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: 2014 2015 2016 2017 2018
Taxes and assessments $              4,949 5,810 $              5,067 $              6,486 $              7,131 $ Intergovernmental                 7,463 2,946                 5,219                 1,847                 4,592 Charges for services                 457 2,907                    242                    203                    139 Fines, forfeitures and penalties                      178 28                    162                    211                    84 Licenses and permits                    254 234                    273                    97                      132 Use of money and property                      120 84                    174                    55                      126 Unrealized gains and losses                         ‐ ‐                         ‐                         ‐                         ‐ Reimbursements                         2,930 ‐                 3,413                 2,345                 2,691 Other                    59 240                      127                    210                    82 Total revenues               16,410 12,249               14,677               11,454               14,976 Expenditures:

Current:

General government                 2,875 1,549                 2,685                 2,548                 2,881 Public safety                 3,581 3,829                 4,100                 4,233                 4,383 Public works                 3,469 1,594                 1,874                 1,902                 1,947 Community development                 834 3,460                    1,693                 1,011                 1,201 Marketing and promotions                         ‐ ‐                         ‐                         ‐                         ‐ Cost allocations                         ‐ ‐                         ‐                         ‐                         ‐ Capital outlay 2,431                 5,058                 1,725                 1,992                 3,780 Debt Service:

Principal Retirement 112                    116                    120                    127                    169 Interest and fiscal charges 36                      31                      26                      21                      17 Total expenditures               15,964 13,011               12,223               11,834               14,378 Reconciliation of Governmental Revenues
Less Expenditures to Fund Equity:

Revenues over (under) expenditures (762) $                446 $                 2,454 $              $                598 (380) $ Other financing sources (uses):

Proceeds from sales of assets ‐                         ‐                         ‐                         ‐                         ‐ Extraordinary loss on dissolution of redevelopment ‐                         ‐                         ‐                         ‐                         ‐ Transfers in 1,091                 5,683                 2,714                 3,775                 2,944 Transfers out (1,099)                (6                (3,292) ,069)                (5                (3,843) ,266) Total other financing sources (uses) (8)                       (                   (578) 386)                   (1                (898) ,491) Net change in fund balances (770) $                60 $                   1,876 $              (1 $            (300) ,871) $ Debt service as a percentage of noncapital expenditures 1.40% 1.35% 1.39% 1.50% 1.75% Source: City Finance Department
$(2,000)
$(1,500)
$(1,000)
$(500)
$‐
$500
$1,000
$1,500
$2,000
$2,500
2014 2015 2016 2017 2018 2019
Net change in fund balances $(770) $60 $1,876 $(1,871) $(300) $(142) CHANGE IN FUND BALANCE ‐ GOVERNMENTAL FUNDS
138
2019 2020 2021 2022 2023
$              6,878 7,138 $              8,412 $              8,937 $              8,676 $ 2,702 772                 5,883                 4,487                 8,695 61 128                      47                      65                      202 112 118                    103                    146                    158 97 128                      92                      86                      95 409 213                    13                      (34)                     (111) ‐ 195                         ‐                         ‐                         ‐ 2,335 2,453                 2,247                 3,278                 3,765 22 37                      264                    23                      143 12,616 11,182               17,061               16,988               21,622 2,094 2,522                 2,256                 3,319                 2,810 5,029 4,189                 4,094                 4,507                 4,389 1,901 1,968                 1,847                 1,966                 2,224 846 1,050                    4,368                 1,134                 4,680 186 ‐                    93                      227                    210 475 ‐                    478                    789                    1,223 1,975 282                 415                    1,504                 745 180 169                    38                      ‐                         3,425 5 17                         ‐                         358                    ‐ 12,691 10,197               13,589               13,804               19,707 $                 (75) 985 $                  3,472 $              3,184 $              1,916 $ 6 ‐                         9                         16                      ‐ ‐ ‐                         ‐                         ‐                         ‐ 616 2,830                    866                    1,788                 1,465 (2,190) (3,957)                (2,403)                (3,727)                (1,299) (1,568) (1,127)                (1,528)                (1,923)                166 $                (1,643) (142) $            1,944 $              1,261 $              2,082 $

1.88% 1.73% 0.29% 2.91% 18.06%
2020 2021 2022 2023
$(1,643) $1,944 $1,261 $2,082
139
(In Thousands)
Fiscal
Year
Ended Sales & Transient Other
June 30, Property (1) Use Tax Occupancy Tax Taxes Total 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 6,879
2023 1,208 3,322 3,192 953 8,676
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
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
TAX REVENUES BY SOURCE ‐
GOVERNMENTAL FUNDS
Property (1)  Sales &   Use Tax  Transient   Occupancy Tax  Other   Taxes 140
Taxpayer Business Type Taxpayer Business Type
Boatyard Tobacco Miscellaneous Retail Boatyard Tobacco Miscellaneous Retail Canclini TV & Appliance Furniture/Appliance Canclini TV & Appliance Furniture/Appliance Chevron Service Stations Service Stations Chevron Service Stations Service Stations CVS Pharmacy Drug Stores Cliff House Restaurant Restaurants David's Deli Restaurants Coast To Coast Hardware Bldg.Matls‐Retail Denny's Restaurants Restaurants CVS Pharmacy Drug Stores Dollar Tree Stores Department Stores Denny's Restaurants Restaurants Emerald Triangle Cannabis ‐ MMD Drug Stores Eel River Fuels Energy Sales Geo Aggregates Bldg.Matls‐Whsle Fort Bragg Feed & Pet Miscellaneous Retail 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 Noyo Harbor Inn Restaurants Mendocino County Hydrogarden Florist/Nursery O'Reilly Auto Parts Auto Parts/Repair North Coast Brewery Restaurants Redwood Coast Fuels Energy Sales O'Reilly Auto Parts Auto Parts/Repair Restaurante Los Gallitos Restaurants Rite Aid Drug Stores Drug Stores Rino Service Stations Service Stations Rossi 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 Two Short Sales Bldg.Matls‐Whsle Taco Bell Restaurants Union 76 Service Stations Service Stations The Brewery Shop Restaurants 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
2022‐23 2013‐14
141
CDTFA NAICS SECTOR 2023Q1 2022Q1 2021Q1 2020Q1
Accommodation and Food Services 297,198 310,562 219,712 261,645 Agriculture, Forestry, Fishing and Hunting 10,561 10,175 6,569 11,023 Arts, Entertainment, and Recreation 8,673 8,183 189 5,903 Educational Services 57 881 866 1,331
Information 11,936 12,478 7,167 7,675
Manufacturing 9,909 4,086 5,144 8,705
Mining, Quarrying, and Oil and Gas Extraction 87,936 93,131 68,023 90,299 Other Services (except Public Administration) 30,728 31,829 27,773 31,619 Professional, Scientific, and Technical Services 3,278 3,826 3,254 4,980 Real Estate and Rental and Leasing 2,703 3,276 4,114 2,239 Retail Trade 1,190,494 1,190,415 1,045,074 1,050,208
Utilities 60,081 55,488 45,953 52,095
All Other NAICS Sectors 27,609 23,559 23,324 21,707
TOTAL 1,741,163 1,747,890 1,457,163 1,549,429
Source:  MuniServices, LLC / Avenu Insights & Analytics Historical Sales Tax Amounts by Benchmark Year
Last Ten Fiscal Years
City of Fort Bragg, California
142
2019Q1 2018Q1 2017Q1 2016Q1 2015Q1 2014Q1
270,483 282,205 261,139 233,034 218,376 201,158
9,955 3,547 7,404 11,516 6,866 2,625
5,394 3,516 3,469 3,454 4,002 4,407
2,082 7,876 7,499 8,318 6,932 7,927
9,327 5,569 4,825 4,031 6,163 7,182
8,337 7,222 6,312 4,704 4,951 4,444
86,275 73,796 56,363 62,526 80,000 113,954
31,125 30,343 31,197 31,897 31,049 27,496
5,892 7,944 7,989 8,627 8,693 7,599
2,712 2,455 2,525 2,525 2,944 2,893
1,045,335 1,056,217 987,423 990,177 983,868 980,587
56,097 39,686 39,438 40,014 37,326 32,788
21,418 21,025 18,791 18,414 8,834 5,016
1,554,432 1,541,401 1,434,374 1,419,237 1,400,004 1,398,075 143
(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)
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 2022‐23 766,503 $                 37,340 $                       803,843 $             7.4% 1.185000 965,275 1.200826 (1.) Total tax rate is represented by TRA 001‐001.
(2.) Sales Price not available. Average Sales Factor applied. *Secured Property is net of all exemptions.

City of Fort Bragg, California
Assessed Value and Estimated Actual Value of Taxable Property, City Wide Last Ten Fiscal Years
Source:  Mendocino County Assessor/Auditor data, MuniServices, LLC / Avenu Insights & Analytics $‐
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Assessed Value Of Taxable Property
144
Assessed Value of Property by Use Code, City Wide
(In Thousands)
Category 2013‐14 2014‐15 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 2022‐22 2022‐23 Residential 351,259 357,224 369,852 393,470 375,474 395,888 410,229 428,620 448,738 480,401 Commercial 165,103 163,032 167,141 150,666 153,767 156,832 160,042 163,238 164,973 168,401 Industrial 36,342 36,807 37,595 37,908 38,037 39,021 40,900 39,219 35,200 37,333 Miscellaneous 698 701 735 1,120 31,285 31,187 33,043 33,941 22,866 30,445 Vacant 18,931 18,682 18,963 21,162 21,817 23,423 24,116 22,554 19,854 19,556 Professional 0 0 179 9,804 19,769 20,036 20,413 20,817 18,946 11,181 Institution 4,024 4,285 4,513 4,515 3,761 2,691 3,926 4,429 4,031 12,354 Recreation 7,905 7,593 6,391 7,101 2,676 2,613 2,719 2,762 3,740 4,889 Agriculture 33 34 34 34 0 0 0 0 2,460 1,942
Unitary 542 543 543 340 0 0 0 0 0 0
Unknown 1,149 1,178 1,192 0 0 0 0 0 00
Net Secured Value 233,578 590,079 607,137 626,121 646,586 671,692 695,389 715,581 720,807 766,503 Unsecured 29,641 31,347 31,275 32,889 32,288 31,556 33,240 33,149 32,899 37,340 Net Taxable Value 263,219 621,426 638,412 659,009 678,874 703,249 728,629 748,730 753,706 803,843 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, Califor
Last Nine Fiscal Years
Residential
63%
Commercial
22%
Miscellaneous
5%
Industrial
4%
Professional
2%
Agriculture
1% Vacant
2% Institution
1% Recreation
0%
2022‐23 Assessed Value
Residential Commercial Miscellaneous Industrial Professional Agriculture Vacant Institution Recreation
145
Direct and Overlapping Property Tax Rates
2013‐14 2014‐15 2015‐16 2016‐17
COUNTY GENERAL FUND 0.745000 0.745000 0.745000 0.745000 CITY OF FORT BRAGG 0.255000 0.255000 0.255000 0.255000
TOTAL 1.000000 1.000000 1.000000 1.000000
Override Assessments
LOCAL SPECIAL DISTRICSTS 0.011000 0.026000 0.025000 0.018000 SCHOOLS 0.114000 0.101000 0.107000 0.115000
TOTAL 0.125000 0.127000 0.132000 0.133000
TOTAL TAX RATE 1.125000 1.127000 1.132000 1.133000
Source:  Mendocino County Auditor/Controller data, MuniServices, LLC / Avenu Insights & An 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 2022‐22 2022‐23

0.745000 0.745000 0.745000 0.745000 0.745000 0.745000

0.255000 0.255000 0.255000 0.255000 0.255000 0.255000

1.000000 1.000000 1.000000 1.000000 1.000000 1.000000

0.026000 0.024000 0.024000 0.023000 0.023000 0.023000

0.107000 0.114000 0.107000 0.101000 0.114000 0.162000

0.133000 0.138000 0.131000 0.124000 0.137000 0.185000

1.133000 1.138000 1.131000 1.124000 1.137000 1.185000
nalytics
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 12,098,933            1.51% 8,448,484 1.37% Georgia Pacific Llc 11,676,064            1.45% 31,081,107 5.05% Boatyard Associates Phase 10,990,643            1.37% 9,473,608 1.54% Anderson Logging 7,714,818              0.96% 3,004,934 0.49% Safeway Inc 7,534,367              0.94% 7,095,881 1.15% North Coast Brewery 7,460,211              0.93% 3,836,802 0.62% Tenants Choice Llc 7,020,616              0.87%
Gp Investors Llc 5,145,477              0.64%
Kao Kuami 4,882,578              0.61% 4,209,671 0.68%
Tanti Family Ii Llc 4,845,645              0.60%
Mendocino Railway 4,835,454              0.60%
Kashi Keshav Investments L              0.59% 4,173,099 0.68% 4,721,210 Snb Govind Corporation 4,660,843              0.58%
Grosvenor Van Ness Associa 4,500,960              0.56% 3,881,520 0.63% Longs Drug Stores Californ 4,152,213              0.52% 3,857,264 0.63% Ray Ronald R Ttee 4,146,400              0.52%
Fort Bragg Hotel Llc 3,511,176              0.44% 3,493,850 0.57% Comcast 3,123,383              0.39% 2,516,285 0.41%
Fort Bragg Investments Llc 3,091,700              0.38% Noyo Harbor Inn Llc 3,089,340              0.38%
Colombi Jeanette Succttee 3,020,628              0.38% 4,936,568 0.80% Moura Senior Housing 2,921,318              0.36%
Rbj & Associates Llc 2,848,813              0.35% 2,532,755 0.41% Taubold Timothy E Ttee 2,777,295              0.35% 2,392,189 0.39% Kemppe Liquid Gas Corporat 2,733,377              0.34% 2,437,271 0.40% Savings Bank Of Mendocino Coun 7,417,342            1.20% Hurst Jason S 4,493,571            0.73%
North Otown Industrial Center 3,573,637            0.58% Moura Joe P Ttee 3,394,063            0.55%
Keaton Richard J & Julie 3,011,074            0.49%
Noyo Vista Inc 2,957,263            0.48%
Miller Helen Centeno 2,436,877            0.40%
Whitteaker Donald E & Dorothy 2,318,649            0.38% Lee Michael V & Dona H Ttees 2,290,109            0.37% Total Top 25 Taxpayers 133,503,462 16.61% 129,263,873 21.00% Total Taxable Value 803,842,909 100.00% 615,634,319 100.00% 2022‐23 2013‐14
Source:  Mendocino County Assessor data, MuniServices, LLC / Avenu Insights & Analytics 148
Fiscal
Year Taxes Levied
Ended for the Percentage
June 30, Fiscal Year Amount of Levy
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
2022 N/A N/A N/A
2023 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
$225,000
$230,000
$235,000
$240,000
$245,000
$250,000
$255,000
$260,000
$265,000
$270,000
$275,000
$280,000
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 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
2023 7,781 - 7,781 4,981 - -
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)
$ 5,675 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
12,762 4,981 5.6% 1,784
151
Legal Debt Margin Information
2014 2015 2016 2017
Assessed Value 585,992 $ 590,079 $ 607,137 $ 626,121 $
Conversion Percentage 25% 25% 25% 25%
Adjusted Assessed Value 146,498 147,520 151,784 156,530 Debt Limit Percentage 15% 15% 15% 15%
Debt limit 21,975 22,128 22,768 23,480
Total net debt applicable to limit - - - -
Legal debt margin 21,975 $ 22,128 $ 22,768 $ 23,480 $
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, Califo
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
2018 2019 2020 2021 2022 2023
$ 671,692 646,586 $ 695,389 $ 715,581 $ 720,807 $ 720,807 $ 25% 25% 25% 25% 25% 25%
147,520 161,647 173,847 178,895 180,202 180,202
15% 15% 15% 15% 15% 15%
22,128 24,247 26,077 26,834 27,030 27,030
- - - 11,440 11,355
$ 22,128 24,247 $ 26,077 $ 26,834 $ 15,590 $ 15,675 $
0% 0% 0% 0% 73% 72%
153
2022-23 Assessed Valuation: $ 811,118,845
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2023 % Applicable (1) Debt 6/30/2023 Redwoods Joint Community College District $ 20,260,000 3.670% 743,542 $ Fort Bragg Unified School District 48,433,024 37.574% 18,198,224 Mendocino Coast Hospital District 3,869,667 20.956% 810,927 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 19,752,693 $
OVERLAPPING GENERAL FUND DEBT:

Mendocino County Certificates of Participation 20,885,000 6.012% 1,253,803 $ Mendocino County Pension Obligation Bonds 27,860,000 6.012% 1,674,943 City of Fort Bragg General Fund Obligations 11,355,000 100.000% 11,355,000 TOTAL OVERLAPPING GENERAL FUND DEBT 14,283,746 $
OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 100.000% 2,845,000 2,845,000 DIRECT DEBT $ 11,355,000
TOTAL OVERLAPPING DEBT $ 25,526,439
COMBINED TOTAL DEBT $ 36,881,439 (2)
Ratios to 2022-23 Assessed Valuation:

Direct Debt 2.44%
Total Overlapping Tax and Assessment Debt 1.40%
Combined Total Debt 4.55%
Ratios to Redevelopment Successor Agency Incremental Valuation ($214,357,696):

Total Overlapping Tax Increment Debt 1.21%
Source: Avenu Insights & Analytics
California Municipal Statistics, Inc.

City of Fort Bragg, California
Direct and Overlapping Debt
Current Year
June 30, 2023
(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
2023 2,577 3,043 467 743 93 836 0.6
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
3,817 3,522 (295) 91 94 185 (1.6)
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)
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%
2022‐22 7,153 227,323 31,780 43.0 1,756 2.3%
2022‐23 7,014 259,996 37,068 41.3 1,764 3.4%
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
$40,000 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
(%)
Fort Bragg Unified School District* 275 11.85% 270 7.89% Mendocino Coast District Hospital 255 10.99% 300 8.77%
Parents & Friends Inc 163 7.03%
Safeway 131 5.65% 115 3.36%
Mendocino Coast Clinics Inc 120 5.17% 120 3.51%
Mendocino County** 101 4.35% 65 1.90%
North Coast Brewing CO Inc (1) 94 4.05% 107 3.13%
Anderson Logging Inc 83 3.58% 92 2.69%
The Wharf & Anchor Lodge 70 3.02%
City of Fort Bragg 67 2.89% 57 1.67%
Sherwood Oaks Health Center 100 2.92%
Fort Bragg Recreation Center 85 2.49%
Total Top Employers 1,359 58.58% 1,311 38.33%
Total City Employment (2) 2,320 3,420
Source: 2014, 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
2023 2014
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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General Government
Administrative Services 6.00 6.00 6.50 6.50 7.00 7.00 6.50 6.00 6.00 6.00 Finance 4.00 4.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 5.00 Public Safety
Police 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 Community Services
Community Development 4.00 4.30 4.30 4.50 4.80 4.80 4.30 4.00 4.00 4.00 Public works 12.60 13.60 12.80 12.80 14.00 14.00 12.80 13.00 13.00 13.00 Enterprise Funds 8.00 8.00 8.00 8.00 8.00 8.00 8.00 7.00 7.00 7.00 Total 57.90 56.60 57.60 57.80 59.80 59.80 57.60 57.00 57.00 57.00 Source: City Finance Department
Administrative
Services

6.00 10% Finance

5.00 9%
Police

22.00 39%
Community
Development

4.00 7%
Public works

13.00 23%
Enterprise
Funds

7.00 12%
Full-time and Part-time City Employees
by Function (Full Time Equivalent) FY
2023
160
City of Fort Bragg, California
Operating Indicators by Function
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Building Permits Issued 272 192 141 122 162 194 141 99 146 146 New Construction 2 7 6 4 9 12 N/A 888
Single Family Residential 00 2 0 5 42666
Second Unit 1 1344 83888
Mixed Use, Commercial & Residential 02 1 0 0 41000
Multi-Family Residential 10 0 0 0 20111
Low Income Residential 04 0 0 0 00111
City Clerk
Council/Agency Resolutions Passed 127 87 98 122 121 92 98 134 148 148 Number of Ordinances Passed 4 3 5 6 8 9 5 6 13 13
Number of Contracts Approved 30 31 69 74 105 71 69 45 97 97 Number of PRA Requests Processed 35 74 73 79 146 145 N/A 294 280 294 Public Safety
Traffic Accidents 174 172 221 160 145 147 221 146 122 122 Traffic Violations - DUI 45 26 28 45 49 40 28 26 48 48
Bookings 689 737 668 619 795 625 668 523 162 162
Moving Cites 1,614 949 498 344 428 368 498 429 122 122
Parking Cites 833 484 835 842 941 869 835 416 416 416
Field Interviews and Information Cases 2,211 1,301 1,217 1,403 1,936 1,289 1,217 4,065 3,191 3,191 Crime Reports 1,576 1,317 1,501 1,496 1,554 1,262 1,501 1,193 1,098 1,098 Fire 1
Total Number of Calls 525 617 579 665 626 752 579 579 579 579 Structure Fires 29 21 29 38 10 37 29 29 29 29
Vehicle Fires 17 9 3 16 5 4 3 3 3 3
Vegetation Fires 40 41 31 33 23 40 31 31 31 31
Misc Fires (Chimney, Debris, Electronically, etc.) 17 24 36 18 81 80 36 36 36 36 Medical Aid 163 142 150 199 197 248 150 150 150 150
Rescue 13 10 22 16 11 7 22 22 22 22
Hazardous Condition/Materials Calls 48 41 70 75 58 73 70 70 70 70 Mutual Aid/Agency Assist 9 3 12 18 23 18 12 12 12 12
Traffic Accidents 89 98 133 98 115 100 133 133 133 133
Services Call 117 96 91 80 99 126 91 91 91 91
Other Calls & Incidents 2 113 2 74 4 19 2 2 2 2
Water
Number of customer accounts billed 33 32,300 33 ,716 33 ,671 34 ,873 33 ,146 33 ,339 33 ,671 33 ,508 33 ,508 ,508 Water annual demand in thousand gallons 2 2 ,245 189 ,044 197 ,500 210 ,600 208 ,200 1 ,015 23 ,895 23 ,055 23 ,055 ,055 Available supply of water in thousand gallons 2 2,490 2 ,398 21 ,080 21 ,300 22 ,300 20 ,400 25 ,800 25 ,877 25 ,877 ,877 total Customer service calls 1 1 ,254 1 ,177 1 ,253 1 ,253 1 ,193 1 ,488 785 ,253 785 785 Meter installs/removals/change outs 11 14 16 14 24 13 16 51 51 51 Meter repairs 1 8 1 34 5 23 1 - - -
Leak investigations 6 3 11 34 29 61 11 36 36 36
Service profiles 52 57 65 31 63 61 65 48 48 48
Turn on/off 508 139 669 878 891 1 669 ,099 545 545 545
Manual Reads 513 453 416 444 126 111 416 592 592 592
Misc. 49 60 75 53 55 68 75 100 100 100
Wastewater
Customer service calls, wastewater 71 41 52 43 33 36 52 44.2 44.2 44.2 New customer sewer lines installed 2 3 1 4 0 2 1 1.8 1.8 1.8 Sewer mains cleaned/flushed in miles 14 15.5 15 17.38 16 18 15 16.688 16.688 16.688 Sewer mains and laterals repaired in number of jobs 8 16 11 12 9 8 11 17.5 17.5 17.5 Sewer manholes inspected 362 363 363 374 374 374 363 369.5 369.5 369.5 Sewer manholes installed 0 0000 00000
Sewer spill responses 7 7 5 1 1 2 5 3.4 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Police :

Stations 1111111111
Public works
Streets (miles) 26.4 26.4 26.4 26.4 27.2 27.2 26.4 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 725 725 725 725 744 744 725 725 725 725
Sidewalks 40 40 40 40 40 40 40 40 40 40
Water
Water treatment plant 1111111111
Water mains (miles) 30 30 30 30 30.5 30.5 30 30 30 30
Raw water transmission line (miles) 5.75 5.75 5.75 5.75 5.85 5.85 5.75 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 3444524444
Recreational/Guest Facilities 3333333333
Government Facilities 2222222222
Source: City Finance, Public Works and Planning Departments 162
This page intentionally left blank.
163