Methods of Issuance. The City will determine, on a case-by-case basis, whether to sell its bonds competitively or through negotiation.
Credit Quality. All City debt management activities will be conducted to receive the highest credit ratings possible, consistent with the City’s financing objectives and, at a minimum, to maintain current credit ratings assigned to the City's debt by the major credit rating agencies.
Debt Capacity. The City will carefully monitor its level of general purpose debt. Because the City’s general purpose debt capacity is limited, it is important that the City only use general purpose debt financing for highpriority projects where other financing methods cannot be used. In evaluating debt capacity, general purpose annual debt service payments shall not exceed 10% of General Fund revenues. The City’s Enterprise Fund debt capacity will be evaluated as an integral part of the City’s rate review and setting process. The City will set Enterprise Fund service rates at levels needed to fully cover debt service, operations, maintenance, administration and capital improvement requirements.
Financing Criteria
When the City determines that the use of debt is appropriate, the following criteria will be utilized to evaluate the type of debt to be issued:
Pay-As-You-Go Financing. The City will consider Pay-As-You-Go Financing if current revenues and adequate fund balances are available or project phasing can be accomplished. Other factors to be considered include:
current debt levels, the effect of additional debt on the City’s credit rating, anticipated difficulties in marketing debt, and stability of market conditions.
Long-Term Debt. The City may issue long-term debt when required capital improvements cannot be financed from current revenues or reserves without having an impact on the City’s financial stability and/or operating flexibility. Long-term borrowing should not be used to finance current operations or normal maintenance and repairs.
Variable Rate Debt. To maintain a predictable debt service burden and rate structure, the City may give preference to debt that carries a fixed interest rate. The City, however, may consider variable rate debt, especially in periods of high interest rates, or when the revenue stream for repayment is variable.
Interfund or Short-Term Debt. Interfund or short-term borrowing may be utilized for temporary funding of operational cash flow deficits or anticipated revenues. Short-term debt may be used when it provides an interest rate advantage or as interim financing until market conditions are more favorable.
Terms and Conditions of Bonds
The City shall establish all terms and conditions relating to the issuance of bonds, and will control, manage, and invest all bond proceeds. Unless otherwise authorized by the City Council, the following shall serve as bond requirements.
Maturity/Term. All capital improvements financed through the issuance of debt will be financed for a period not to exceed the useful life of the improvements, but in no event will the term exceed 40 years.
Debt Service Structure. Debt issuance shall be planned to achieve relatively rapid repayment of debt while still matching debt service to the useful life of facilities. The City shall avoid the use of bullet or balloon maturities except in those instances where these maturities serve to meet aggregate debt service structuring objectives.
Debt service should be structured primarily on an aggregate level annual basis, as opposed to on an escalating or deferred basis.
Coupon Structure. Debt may include par, discount, premium and capital appreciation bonds. Discount, premium, and capital appreciation bonds must be demonstrated to be advantageous relative to par bond structures.
City of Fort Bragg | Budget Book 2025 Page 346
Call Provisions. The City’s securities should include an optional call feature, which typically is no later than 10 years from the date of delivery of the bonds. The City will avoid the sale of non-callable bonds absent careful evaluation by the City and its financial advisor with respect to the value of the call option.
Bond Insurance / Credit Enhancement. The City shall have the authority to purchase bond insurance or credit enhancement when such purchase is deemed prudent and advantageous. The determination shall be based on the net present value debt service cost comparison of insured/enhanced bonds versus uninsured/unenhanced bonds.
Debt Service Reserves. A reserve fund shall be funded from the proceeds of each series of bonds, subject to federal tax regulations and in accordance with the requirements of credit enhancement providers, rating agencies, and investor demands. The reserve fund shall be treated as a Restricted Reserve as defined in the City Reserve Policy. The City shall have the authority to purchase reserve equivalents (i.e., the use of a reserve fund surety) when such purchase is deemed prudent and advantageous. Such equivalents shall be evaluated in comparison to cash funding of reserves on a net present value basis, taking into account the impact of investments and arbitrage rebate considerations.
Refinancing Outstanding Debt
The Finance Director shall analyze outstanding bond issues for refunding opportunities that may be presented by underwriting firms. The City will consider the following issues when analyzing possible refunding opportunities:
Debt Service Savings. The City will refund debt when it is in the best financial interest of the City to do so. The City shall evaluate each refunding opportunity based on net present value savings, which shall take into account foregone interest earnings, all costs related to the refinancing, and arbitrage implications (i.e., net-tonet savings).
Restructuring. The City will only consider restructuring when it can be demonstrated that a proposed structure will assist the City in meeting at least one of several goals, including: meeting unanticipated revenue expectations, achieving cost savings, mitigating irregular debt service payments, releasing reserve funds or removing restrictive bond covenants.
Term of Refunding Issues. The City will refund bonds within the term of the originally issued debt. However, the City may consider maturity extension when necessary to achieve a desired outcome, provided that such extension is legally permissible. The City may also consider shortening the term of the originally issued debt to realize greater savings. The remaining useful life of the financed facility and the concept of intergenerational equity should guide this decision.
Escrow Structuring. The City shall utilize the least costly securities available in structuring refunding escrows.
Arbitrage. The City shall take all necessary steps to optimize escrows and to minimize negative arbitrage in a refunding escrow, including evaluating the risks and benefits of an economic versus legal defeasance.
Market Relationships
Rating Agencies and Investors. The Finance Director shall be responsible for maintaining the City’s relationships with rating agencies (i.e., Moody’s Investors Service, Standard & Poor’s and Fitch).
Continuing Disclosure. The City shall remain in compliance with Securities Exchange Commission (SEC) Rule 15c2-12 by filing its annual financial statements and other financial and operating data for the benefit of its bondholders within the deadlines imposed by Rule 15c-2-12. The City shall provide this information to the Municipal Securities Rulemaking Council (MSRB) Electronic Municipal Market Access Website (www.emma.msrb.org). The City will make this information available on its website.
Record Keeping/Reporting. The City shall maintain a repository for all debt-related records, which includes: all official statements, ordinances, indentures, trustee reports, leases, etc. for all City debt in electronic format. To the extent that official transcripts incorporate these documents, possession of a transcript will suffice.
Arbitrage Rebate. The City will account for all interest earnings in debt-related funds. The use of bond proceeds and their investments shall be monitored to ensure compliance with all debt covenants, legal requirements, and IRS arbitrage regulations. The City will endeavor to make investments that maximize the amount of the interest earnings it can retain (under IRS regulations) for all bond funds. The Finance Director shall ensure that proceeds and investments are tracked in a manner which facilitates accurate calculation and timely payment of rebates, if applicable.
Procurement and Selection of Financing Team
City of Fort Bragg | Budget Book 2025 Page 347
The City shall procure professional services as required to execute financing transactions and to provide advice on non-transaction related work. The City shall establish selection criteria for selecting its financing team members, which include financial advisor, bond counsel, and underwriter. The criteria may include, but are not limited to:
Professional excellence,
Demonstrated competence,
Specialized experience performing similar services for California agencies, Education and experience of key personnel to be assigned, Geographic proximity,
Staff capability,
Ability to meet schedules,
Nature and quality of similar completed work of the firm or individual, Reliability and continuity of the firm or individual.
Note: Definitions to financial terms used in this policy are found in the Glossary section of the budget.
City of Fort Bragg | Budget Book 2025 Page 348
Interfund Loan Policy
The purpose of the City’s Interfund Loan Policy is to specify the principles under which interfund loans may be considered and approved. The policy specifies the terms and conditions, it summarizes the due diligence necessary prior to the loan and provides guidance as to the repayment and accounting for these loans. This policy was designed to avoid the problems in interfund loans experienced in the past, facilitate future loans in a structured manner and set clear accounting rules for these loans. The principles of City’s Interfund Loan Policy are as follows:
a. The City Council shall act by resolution to approve any proposed interfund loan. All interfund loans must be documented by formal agreements that specify the terms and conditions. The loan amount shall be approved at the amount minimally necessary to ensure the completion of the project for which the funding is required. b. All interfund loans shall be interest bearing and the amount of interest to be paid on the loan must be at least equal to the investment earnings the fund making the loan would have received had the loan not occurred. c. The term of an interfund loan shall be established by the City Council and typically shall not exceed five years. d. All interfund loan proposals require a feasibility analysis demonstrating that:
The borrowing fund has the capacity to repay the debt;
The lending fund has the capacity to lend the funds, beyond its own operating and capital needs; and The loan does not violate any debt covenants or other provisions of the borrowing and lending funds. e. As part of the due diligence, each loan proposal must demonstrate that the loan can be repaid. It is important to avoid masking an operating deficiency in one fund with an interfund loan from another fund. This is the centerpiece of the policy, which seeks to avoid loans that fail the fundamental test of performance (repayment) under the contract.
f. If a feasibility analysis does not show that the loan can be safely repaid, the appropriate recommendation may be a revenue enhancement or another correction of the underlying reason for the funding deficiency. An alternative financing recommendation may be a fund balance donation. This requirement is also intended to identify conflicts with specific restrictions or requirements pertaining to certain funds. Such conflicts may arise from applicable debt covenants, fiduciary requirements on funds held by the City or legal hurdles that the funding needs to overcome. g. There is to be no prepayment penalty, the interest is to be paid quarterly, and principle payments are subject to the feasibility analysis cash projections.
h. The interest expense from interfund loans is to be treated as user fund expense, while the interest income is to be treated as interest revenue to the loaning fund.
City of Fort Bragg | Budget Book 2025 Page 349
GENERAL FUND: 2021 LEASE REVENUE BONDS
$11,440,000
City of Fort Bragg Joint Powers Authority
2014 Water Revenue Refunding Bond
110-4390-0611
Date: November 1, 2021
Interest: Semiannual each November and May, commencing November 1, 2022. The interest rate is 3.5% per annum.
Maturity: May 1, 2044
Rating: A+
Purpose: To refinance some or all of the unfunded accrued actuarial liability (UAL) owed by the City to the California Public Employees’ Retirement System (CALPERS)
Security: The Bond is secured by leasing the City Hall Building and the City’s Police Department Building.
WASTEWATER ENTERPRISE: TREATMENT FACILITY
$5,000,000
2018 Wastewater Certificates of Participation
717-4712
Date: October, 2018
Interest: Semiannual each October and April, commencing October 1, 1998. Interest rate is 2.00% per annum.
Maturity: 2058
Rating: TBD
Purpose: To acquire and construct the District’s Wastewater Treatment Facility.
City of Fort Bragg | Budget Book 2025 Page 350
Security: The Certificates of Participation are secured by an Installment Sale agreement between the City and the City of Fort Bragg Joint Powers Financing Authority with the JPFA as Seller and the City as Purchaser. The obligation is secured and payable from net revenues of the Wastewater Enterprise.
Fiscal Agent: US Bank Corporate Trust Services
Disclosures: TBD
City of Fort Bragg | Budget Book 2025 Page 351
CAPITAL IMPROVEMENTS
City of Fort Bragg | Budget Book 2025 Page 352
There are no submitted Capital Requests
City of Fort Bragg | Budget Book 2025 Page 353
Capital Improvement Program Overview
The City of Fort Bragg’s Five-Year Capital Improvement Program (CIP) outlines current and future infrastructure needs and capital funding priorities in the following areas:
i. Municipal Facilities,
ii. Parks & Community Services,
iii. Street Maintenance & Traffic Safety,
iv. Storm Drains,
v. Water Enterprise,
vi. Wastewater Enterprise.
The CIP is an important planning tool that identifies and prioritizes all major capital projects in the City. It helps determine funding sources and needs.
In general, the CIP provides funding for infrastructure construction and non-routine maintenance, while funding for routine infrastructure maintenance is appropriated in the operating budget and in other special revenue funds. CIP projects, including streets, buildings, recreational facilities, and parks are defined as assets with an initial individual cost of at least $50k and an estimated useful life of greater than two years. Acquisitions of other capital assets (such as machinery, furniture, and vehicles) are generally accounted for in an internal service fund or departmental account that is responsible for financing each expenditure. Cost estimates are prepared for each capital project using current year dollars.
The CIP shows detailed expenditures and funding for capital projects over the next five years, covering FY 2025 through FY 2029. “Prior Year” funding for projects which span multiple years is also shown. The CIP also includes a “Beyond CIP” category that recognizes the importance of planning for future significant capital projects beyond the five-year CIP time frame.
The projects planned for FY 2025 include expenditures that will be appropriated through the FY 2025 Budget adoption process. Projected expenditures shown for FY 2026 through FY 2029 and Beyond CIP are provided primarily for project planning and long-range financial planning purposes and do not reflect a commitment of funds. Expenditure approval will be sought for these projects during the appropriate fiscal year.
The CIP is comprised of projects with a total cost of approximately $146 million. For FY 2025, projects totaling approximately $21.3 million are recommended for appropriation. The FY 2024/25 priorities will focus largely on (FY23/24) the water system, including the design and permitting of the remaining portions of the raw water transmission main that are overdue for replacement. In addition, the raw water pond and water treatment plant are ready for rehabilitation. The 2022 Street projects include substantial rehabilitation to the Franklin Street corridor downtown, including installing bollards and rehabilitated stamped crosswalks and light poles.
The CIP is organized as follows:
1. FY 2025-2029 Five Year Capital Improvement Program – Expenditures by Category
2. FY 2025-2029 Five Year Capital Improvement Program – Expenditures by Source
3. FY 2025-2029 Capital Improvement Program Projects Detail City of Fort Bragg | Budget Book 2025 Page 354
City of Fort Bragg | Budget Book 2025 Page 355
Guest House Rehabilitation
City of Fort Bragg | Budget Book 2025 Page 356
Broadband Fiber
City of Fort Bragg | Budget Book 2025 Page 357
City Hall - Roof
City of Fort Bragg | Budget Book 2025 Page 358
City Hall - Siding Replace - South & East Side
City of Fort Bragg | Budget Book 2025 Page 359
Emergency Operations Center - Veterans Memorial
City of Fort Bragg | Budget Book 2025 Page 360
Resiliency Center - CV Starr Center
City of Fort Bragg | Budget Book 2025 Page 361
PD EV Charging Stations
City of Fort Bragg | Budget Book 2025 Page 362
E. City Hall Rehabilitation & Stabilization
City of Fort Bragg | Budget Book 2025 Page 363
City Hall Remodel + Door Replacement
City of Fort Bragg | Budget Book 2025 Page 364
Town Hall Rehab and Bathroom Remodel
City of Fort Bragg | Budget Book 2025 Page 365
Main St. Fire Station Rehab
City of Fort Bragg | Budget Book 2025 Page 366
Main St. Fire Station Roof
City of Fort Bragg | Budget Book 2025 Page 367
Police Dept. Roof Replacement
City of Fort Bragg | Budget Book 2025 Page 368
Police Dept. Paint & Repairs- Exterior
City of Fort Bragg | Budget Book 2025 Page 369
Microgrid
City of Fort Bragg | Budget Book 2025 Page 370
Facilities Solar
City of Fort Bragg | Budget Book 2025 Page 371
Bainbridge Park Improvements
City of Fort Bragg | Budget Book 2025 Page 372
Pomo Bluffs Park- Parking Lot Rehab
City of Fort Bragg | Budget Book 2025 Page 373
Central Business District Parking Maintenance
City of Fort Bragg | Budget Book 2025 Page 374
Otis Johnson Trail Restoration
City of Fort Bragg | Budget Book 2025 Page 375
2025 Pavement Preservation Project
City of Fort Bragg | Budget Book 2025 Page 376
Rule 20 (Utility Underground)
City of Fort Bragg | Budget Book 2025 Page 377
Systematic Improvements at Unsignalized
City of Fort Bragg | Budget Book 2025 Page 378
2022/23 Streets Rehabilitation
City of Fort Bragg | Budget Book 2025 Page 379
CBD Coastal Trail Connection
City of Fort Bragg | Budget Book 2025 Page 380
CV Starr HVAC Air Intake Redesign
City of Fort Bragg | Budget Book 2025 Page 381
Facility Roof Repair/Skylights
City of Fort Bragg | Budget Book 2025 Page 382
CV Starr Water Slide Staircase Rehab
City of Fort Bragg | Budget Book 2025 Page 383
CV Starr Reception Desk Area Rehab
City of Fort Bragg | Budget Book 2025 Page 384
Madsen Hole Rainey- Design
City of Fort Bragg | Budget Book 2025 Page 385
Desalination- Ocean Intake- Pilot Project
City of Fort Bragg | Budget Book 2025 Page 386
Water Treatment Plant Overhaul
City of Fort Bragg | Budget Book 2025 Page 387
Pudding Creek Water Main Relocation
City of Fort Bragg | Budget Book 2025 Page 388
Raw Water Line- All Phases
City of Fort Bragg | Budget Book 2025 Page 389
Raw Water Reservoirs- 135 AF
City of Fort Bragg | Budget Book 2025 Page 390
Distribution System Rehabilitation
City of Fort Bragg | Budget Book 2025 Page 391
Water Meter Replacement
City of Fort Bragg | Budget Book 2025 Page 392
Pudding Creek Water Main Extension (See WW-5)
City of Fort Bragg | Budget Book 2025 Page 393
Recycled Water
City of Fort Bragg | Budget Book 2025 Page 394
Water Tank #1 Replacement
City of Fort Bragg | Budget Book 2025 Page 395
Collection System Rehabilitation
City of Fort Bragg | Budget Book 2025 Page 396
Pudding Creek Sewer Main Relocation
City of Fort Bragg | Budget Book 2025 Page 397
Onsite Sodium Hypochlorite Generator
City of Fort Bragg | Budget Book 2025 Page 398
Elm Street Pump Station
City of Fort Bragg | Budget Book 2025 Page 399
Dryer Building Reconstruction
City of Fort Bragg | Budget Book 2025 Page 400
Pudding Creek Sewer Main Extension (See WRT-9)
City of Fort Bragg | Budget Book 2025 Page 401
Biosolids Storage Structure
City of Fort Bragg | Budget Book 2025 Page 402
Trash Capture Device
City of Fort Bragg | Budget Book 2025 Page 403
Trash Cans City Wide (Art and Beautification Project)
City of Fort Bragg | Budget Book 2025 Page 404
STATISTICAL DATA
City of Fort Bragg | Budget Book 2025 Page 405
Land Use
City of Fort Bragg
Assessed Value of Property by Use Code, City Wide
Last Nine Fiscal Years
(In Thousands)
Category 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 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 Miscellaneous 698 701 735 1,120 31,285 31,187 33,043 33,941 35,200 37,333 Industrial 36,342 36,807 37,595 37,908 38,037 39,021 40,900 39,219 18,946 30,445 Professional 0 0 179 9,804 19,769 20,036 20,413 20,817 19,854 19,556 Agriculture 33 34 34 34 0 0 0 0 0 11,181
Vacant 18,931 18,682 18,963 21,162 21,817 23,423 24,116 22,554 22,866 12,354 Institution 4,024 4,285 4,513 4,515 3,761 2,691 3,926 4,429 3,740 4,889 Recreation 7,905 7,593 6,391 7,101 2,676 2,613 2,719 2,762 2,460 1,942 Unknown 1,149 1,178 1,192 0 0 0 0 0 4,031 0
Unitary 542 543 543 340 0 0 0 0 0 0
Net Secured Value 585,986 590,079 607,137 626,121 646,586 671,692 695,389 715,581 720,807 766,503 Unsecured 29,641 31,347 31,275 32,889 32,288 31,556 33,240 33,149 32,899 37,340 Net Taxable Value 615,627 621,426 638,412 659,009 678,874 703,249 728,629 748,730 753,706 803,843 City of Fort Bragg | Budget Book 2025 Page 406
Tax Rates
City of Fort Bragg | Budget Book 2025 Page 407
Principle Property Tax Payers
City of Fort Bragg
Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
2022-23 2013-14
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% 8,448,4841.37%
Georgia Pacific Llc 11,676,064 1.45% 31,081,1075.05%
Boatyard Associates Phase 10,990,643 1.37% 9,473,6081.54% Anderson Logging 7,714,818 0.96% 3,004,9340.49%
Safeway Inc 7,534,367 0.94% 7,095,8811.15%
North Coast Brewery 7,460,211 0.93% 3,836,8020.62%
Tenants Choice Llc 7,020,616 0.87%
Gp Investors Llc 5,145,477 0.64%
Kao Kuami 4,882,578 0.61% 4,209,6710.68%
Tanti Family Ii Llc 4,845,645 0.60%
Mendocino Railway 4,835,454 0.60%
Kashi Keshav Investments L 4,721,210 0.59% 4,173,0990.68% Snb Govind Corporation 4,660,843 0.58%
Grosvenor Van Ness Associa 4,500,960 0.56% 3,881,5200.63% Longs Drug Stores Californ 4,152,213 0.52% 3,857,2640.63% Ray Ronald R Ttee 4,146,400 0.52%
Fort Bragg Hotel Llc 3,511,176 0.44% 3,493,8500.57%
Comcast 3,123,383 0.39% 2,516,2850.41%
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% 4,936,5680.80% Moura Senior Housing 2,921,318 0.36%
Rbj & Associates Llc 2,848,813 0.35% 2,532,7550.41%
Taubold Timothy E Ttee 2,777,295 0.35% 2,392,1890.39%
Kemppe Liquid Gas Corporat 2,733,377 0.34% 2,437,2710.40% 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% Source: Mendocino County Assessor data, MuniServices, LLC / Avenu Insights & Analytics City of Fort Bragg | Budget Book 2025 Page 408
Principle Sales Tax Producers
City of Fort Bragg
Principal Sales Tax Producers
Last Fiscal Year and Nine Years Ago
2022-23 2013-14
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 HydrogardenFlorist/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 | Budget Book 2025 Page 409
Historical Sales Tax Amounts
City of Fort Bragg | Budget Book 2025 Page 410
Population Overview
TOTAL POPULATION
7,007
.6%
vs. 2021
GROWTH RANK
293 out of 498
Municipalities in California
DAYTIME POPULATION
8,213
Daytime population represents the effect of persons coming into or leaving a community for work, entertainment, shopping, etc. during the typical workday. An increased daytime population puts greater demand on host community services which directly impacts operational costs. * Data Source: American Community Survey 5-year estimates
POPULATION BY AGE GROUP
Aging affects the needs and lifestyle choices of residents. Municipalities must adjust and plan services accordingly. * Data Source: American Community Survey 5-year estimates * Data Source: U.S. Census Bureau American Community Survey 5-year Data and the 2020, 2010, 2000, and 1990 Decennial Censuses 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2… 6000
6250
6500
6750
7000
7250
7500
<5 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-59 60-64 65-74 75-84 >85 City of Fort Bragg | Budget Book 2025 Page 411
Household Analysis
TOTAL HOUSEHOLDS
3,059
Municipalities must consider the dynamics of household types to plan for and provide services effectively. Household type also has a general correlation to income levels which affect the municipal tax base.
* Data Source: American Community Survey 5-year estimates 44%
lower than state average
Family Households
28%
38%
lower than state average
Married Couples
31%
32%
higher than state average
Singles
31%
175%
higher than state average
Senior Living Alone
36%
City of Fort Bragg | Budget Book 2025 Page 412
Economic Analysis
Household income is a key data point in evaluating a community’s wealth and spending power. Pay levels and earnings typically vary by geographic regions and should be looked at in context of the overall cost of living.
HOUSEHOLD INCOME
Above $200,000
4%
79%
lower than state average
Median Income
$47,662
48%
lower than state average
Below $25,000
27%
105%
higher than state average
* Data Source: American Community Survey 5-year estimates Over $200,000
$150,000 to $200,000
$125,000 to $150,000
$100,000 to $125,000
$75,000 to $100,000
$50,000 to $75,000
$25,000 to $50,000
Below $25,000
City of Fort Bragg | Budget Book 2025 Page 413
Housing Overview
2022 MEDIAN HOME VALUE
$458,600
* Data Source: 2022 US Census Bureau (http:/ www.census.gov/data/developers/datasets.html), American Community Survey. Home value data includes all types of owner-occupied housing.
HOME VALUE DISTRIBUTION
* Data Source: 2022 US Census Bureau (http:/ www.census.gov/data/developers/datasets.html), American Community Survey. Home value data includes all types of owner-occupied housing.
HOME OWNERS VS RENTERS
Fort Bragg
63%
Rent
37%
Own
State Avg.
44%
Rent
56%
Own
* Data Source: 2022 US Census Bureau
(http:/ www.census.gov/data/developers/datasets.html), American Community Survey. Home value data includes all types of owner-occupied housing.
2009
2010
2011
20122013
2014
2015
2016
2017
2018
2019
2020
2021
2022
250k
300k
350k
400k
450k
500k
> $1,000,000
$750,000 to $999,999
$500,000 to $749,999
$400,000 to $499,999
$300,000 to $399,999
$250,000 to $299,999
$200,000 to $249,999
$150,000 to $199,999
$100,000 to $149,999
$50,000 to $99,999
< $49,999
City of Fort Bragg | Budget Book 2025 Page 414
Principal Employers
City of Fort Bragg
Principal Employers
Last Fiscal Year and Nine Years Ago
2023 2014
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: MuniServices, LLC / Avenu Insights & Analytics
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.
City of Fort Bragg | Budget Book 2025 Page 415
Top 15 RDA
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APPENDIX
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Glossary
Abatement: A reduction or elimination of a real or personal property tax, motor vehicle excise, a fee, charge, or special assessment imposed by a governmental unit. Granted only on application of the person seeking the abatement and only by the committing governmental unit.
Accounting System: The total structure of records and procedures that identify record, classify, and report information on the financial position and operations of a governmental unit or any of its funds, account groups, and organizational components.
Accrued Interest: The amount of interest that has accumulated on the debt since the date of the last interest payment, and on the sale of a bond, the amount accrued up to but not including the date of delivery (settlement date). (See Interest) Amortization: The gradual repayment of an obligation over time and in accordance with a predetermined payment schedule.
Appropriation: A legal authorization from the community's legislative body to expend money and incur obligations for specific public purposes. An appropriation is usually limited in amount and as to the time period within which it may be expended.
Arbitrage: As applied to municipal debt, the investment of tax-exempt bonds or note proceeds in higher yielding, taxable securities. Section 103 of the Internal Revenue Service (IRS) Code restricts this practice and requires (beyond certain limits) that earnings be rebated (paid) to the IRS.
Assessed Valuation: A value assigned to real estate or other property by a government as the basis for levying taxes.
Audit: An examination of a community's financial systems, procedures, and data by a certified public accountant (independent auditor), and a report on the fairness of financial statements and on local compliance with statutes and regulations. The audit serves as a valuable management tool in evaluating the fiscal performance of a community.
Audit Report: Prepared by an independent auditor, an audit report includes: (a) a statement of the scope of the audit; (b) explanatory comments as to application of auditing procedures; (c) findings and opinions. It is almost always accompanied by a management letter which contains supplementary comments and recommendations.
Available Funds: Balances in the various fund types that represent non-recurring revenue sources. As a matter of sound practice, they are frequently appropriated to meet unforeseen expenses, for capital expenditures or other one-time costs.
Balance Sheet: A statement that discloses the assets, liabilities, reserves and equities of a fund or governmental unit at a specified date.
Betterments (Special Assessments): Whenever a specific area of a community receives benefit from a public improvement (e.g., water, sewer, sidewalk, etc.), special property taxes may be assessed to reimburse the governmental entity for all or part of the costs it incurred. Each parcel receiving benefit from the improvement is assessed for its proportionate share of the cost of such improvements. The proportionate share may be paid in full or the property owner may request that the assessors apportion the betterment over 20 years. Over the life of the betterment, one year’s apportionment along with one year’s committed interest computed from October 1 to October 1 is added to the tax bill until the betterment has been paid.
Bond: A means to raise money through the issuance of debt. A bond issuer/borrower promises in writing to repay a specified sum of money, alternately referred to as face value, par value or bond principal, to the buyer of the bond on a specified future date (maturity date), together with periodic interest at a specified rate. The term of a bond is always greater than one year. (See Note)
Bond and Interest Record: (Bond Register) – The permanent and complete record maintained by a treasurer for each bond issue. It shows the amount of interest and principal coming due each date and all other pertinent information concerning the bond issue.
Bonds Authorized and Unissued: Balance of a bond authorization not yet sold. Upon completion or abandonment of a project, any remaining balance of authorized and unissued bonds may not be used for other purposes, but must be rescinded by the community's legislative body to be removed from community's books.
Bond Issue: Generally, the sale of a certain number of bonds at one time by a governmental unit.
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Bond Rating (Municipal): A credit rating assigned to a municipality to help investors assess the future ability, legal obligation, and willingness of the municipality (bond issuer) to make timely debt service payments. Stated otherwise, a rating helps prospective investors determine the level of risk associated with a given fixed-income investment. Rating agencies, such as Moody's and Standard and Poors, use rating systems, which designate a letter or a combination of letters and numerals where AAA is the highest rating and C1 is a very low rating.
Budget: A plan for allocating resources to support particular services, purposes and functions over a specified period of time. (See Performance Budget, Program Budget)
Capital Assets: All real and tangible property used in the operation of government, which is not easily converted into cash, and has an initial useful live extending beyond a single financial reporting period. Capital assets include land and land improvements; infrastructure such as roads, bridges, water and sewer lines; easements; buildings and building improvements; vehicles, machinery and equipment. Communities typically define capital assets in terms of a minimum useful life and a minimum initial cost. (See Fixed Assets)
Capital Budget: An appropriation or spending plan that uses borrowing or direct outlay for capital or fixed asset improvements. Among other information, a capital budget should identify the method of financing each recommended expenditure, i.e., tax levy or rates, and identify those items that were not recommended. (See Capital Assets, Fixed Assets) Cash: Currency, coin, checks, postal and express money orders and bankers’ drafts on hand or on deposit with an official or agent designated as custodian of cash and bank deposits.
Cash Management: The process of monitoring the ebb and flow of money in an out of municipal accounts to ensure cash availability to pay bills and to facilitate decisions on the need for short- term borrowing and investment of idle cash.
Certificate of Deposit (CD): A bank deposit evidenced by a negotiable or non-negotiable instrument, which provides on its face that the amount of such deposit plus a specified interest payable to a bearer or to any specified person on a certain specified date, at the expiration of a certain specified time, or upon notice in writing.
Classification of Real Property: Assessors are required to classify all real property according to use into one of four classes:
residential, open space, commercial, and industrial. Having classified its real properties, local officials are permitted to determine locally, within limitations established by statute and the Commissioner of Revenue, what percentage of the tax burden is to be borne by each class of real property and by personal property owners.
Collective Bargaining: The process of negotiating workers' wages, hours, benefits, working conditions, etc., between an employer and some or all of its employees, who are represented by a recognized labor union. regarding wages, hours and working conditions.
Consumer Price Index: The statistical measure of changes, if any, in the overall price level of consumer goods and services. The index is often called the "cost-of-living index."
Cost-Benefit Analysis: A decision-making tool that allows a comparison of options based on the level of benefit derived and the cost to achieve the benefit from different alternatives.
Debt Burden: The amount of debt carried by an issuer usually expressed as a measure of value (i.e., debt as a percentage of assessed value, debt per capita, etc.). Sometimes debt burden refers to debt service costs as a percentage of the total annual budget.
Debt Service: The repayment cost, usually stated in annual terms and based on an amortization schedule, of the principal and interest on any particular bond issue.
Encumbrance: A reservation of funds to cover obligations arising from purchase orders, contracts, or salary commitments that are chargeable to, but not yet paid from, a specific appropriation account.
Enterprise Funds: An enterprise fund is a separate accounting and financial reporting mechanism for municipal services for which a fee is charged in exchange for goods or services. It allows a community to demonstrate to the public the portion of total costs of a service that is recovered through user charges and the portion that is subsidized by the tax levy, if any. With an enterprise fund, all costs of service delivery--direct, indirect, and capital costs—are identified. This allows the community to recover total service costs through user fees if it chooses. Enterprise accounting also enables communities to reserve the City of Fort Bragg | Budget Book 2025 Page 419
"surplus" or net assets unrestricted generated by the operation of the enterprise rather than closing it out to the general fund at year-end. Services that may be treated as enterprises include, but are not limited to, water, sewer, hospital, and airport services.
Equalized Valuations (EQVs): The determination of the full and fair cash value of all property in the community that is subject to local taxation.
Estimated Receipts: A term that typically refers to anticipated local revenues often based on the previous year's receipts and represent funding sources necessary to support a community's annual budget. (See Local Receipts) Exemptions: A discharge, established by statute, from the obligation to pay all or a portion of a property tax. The exemption is available to particular categories of property or persons upon the timely submission and approval of an application to the assessors. Properties exempt from taxation include hospitals, schools, houses of worship, and cultural institutions. Persons who may qualify for exemptions include disabled veterans, blind individuals, surviving spouses, and seniors.
Expenditure: An outlay of money made by municipalities to provide the programs and services within their approved budget.
Fiduciary Funds: Repository of money held by a municipality in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and other funds. These include pension (and other employee benefit) trust funds, investment trust funds, private- purpose trust funds, and agency funds.
Fixed Assets: Long-lived, assets such as buildings, equipment and land obtained or controlled as a result of past transactions or circumstances.
Fixed Costs: Costs that are legally or contractually mandated such as retirement, FICA/Social Security, insurance, debt service costs or interest on loans.
Float: The difference between the bank balance for a local government’s account and its book balance at the end of the day.
The primary factor creating float is clearing time on checks and deposits. Delays in receiving deposit and withdrawal information also influence float.
Full Faith and Credit: A pledge of the general taxing powers for the payment of governmental obligations. Bonds carrying such pledges are usually referred to as general obligation or full faith and credit bonds.
Fund: An accounting entity with a self-balancing set of accounts that are segregated for the purpose of carrying on identified activities or attaining certain objectives in accordance with specific regulations, restrictions, or limitations.
Fund Accounting: Organizing financial records into multiple, segregated locations for money. A fund is a distinct entity within the municipal government in which financial resources and activity (assets, liabilities, fund balances, revenues, and expenditures) are accounted for independently in accordance with specific regulations, restrictions or limitations. Examples of funds include the general fund and enterprise funds. Communities whose accounting records are organized according to the Uniform Municipal Accounting System (UMAS) use multiple funds.
GASB 34: A major pronouncement of the Governmental Accounting Standards Board that establishes new criteria on the form and content of governmental financial statements. GASB 34 requires a report on overall financial health, not just on individual funds. It requires more complete information on the cost of delivering value estimates on public infrastructure assets, such as bridges, road, sewers, etc. It also requires the presentation of a narrative statement the government's financial performance, trends and prospects for the future.
GASB 45: This is another Governmental Accounting Standards Board major pronouncement that each public entity account for and report other postemployment benefits in its accounting statements. Through actuarial analysis, municipalities must identify the true costs of the OPEB earned by employees over their estimated years of actual service.
General Fund: The fund used to account for most financial resources and activities governed by the normal appropriation process.
General Obligation Bonds: Bonds issued by a municipality for purposes allowed by statute that are backed by the full faith and credit of its taxing authority.
Governing Body: A board, committee, commission, or other executive or policymaking bodyof a municipality or school district.
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Indirect Cost: Costs of a service not reflected in the operating budget of the entity providing the service. An example of an indirect cost of providing water service would be the value of time spent by non-water department employees processing water bills. A determination of these costs is necessary to analyze the total cost of service delivery. The matter of indirect costs arises most often in the context of enterprise funds.
Interest: Compensation paid or to be paid for the use of money, including amounts payable at periodic intervals or discounted at the time a loan is made. In the case of municipal bonds, interest payments accrue on a day-to-day basis, but are paid every six months.
Interest Rate: The interest payable, expressed as a percentage of the principal available for use during a specified period of time. It is always expressed in annual terms.
Investments: Securities and real estate held for the production of income in the form of interest, dividends, rentals or lease payments. The term does not include fixed assets used in governmental operations.
Line Item Budget: A budget that separates spending into categories, or greater detail, such as supplies, equipment, maintenance, or salaries, as opposed to a program budget.
Local Aid: Revenue allocated by the state or counties to municipalities and school districts.
Maturity Date: The date that the principal of a bond becomes due and payable in full.
Municipal(s): (As used in the bond trade) "Municipal" refers to any state or subordinate governmental unit. "Municipals" (i.e., municipal bonds) include not only the bonds of all political subdivisions, such as cities, towns, school districts, special districts, counties but also bonds of the state and agencies of the state.
Note: A short-term loan, typically with a maturity date of a year or less.
Objects of Expenditures: A classification of expenditures that is used for coding any department disbursement, such as “personal services,” “expenses,” or “capital outlay.”
Official Statement: A document prepared for potential investors that contains information about a prospective bond or note issue and the issuer. The official statement is typically published with the notice of sale. It is sometimes called an offering circular or prospectus.
Operating Budget: A plan of proposed expenditures for personnel, supplies, and other expenses for the coming fiscal year.
Overlapping Debt: A community's proportionate share of the debt incurred by an overlapping government entity, such as a regional school district, regional transit authority, etc.
Performance Budget: A budget that stresses output both in terms of economy and efficiency.
Principal: The face amount of a bond, exclusive of accrued interest.
Program: A combination of activities to accomplish an end.
Program Budget: A budget that relates expenditures to the programs they fund. The emphasis of a program budget is on output.
Purchased Services: The cost of services that are provided by a vendor.
Refunding of Debt: Transaction where one bond issue is redeemed and replaced by a new bond issue under conditions generally more favorable to the issuer.
Reserve Fund: An amount set aside annually within the budget of a town to provide a funding source for extraordinary or unforeseen expenditures.
Revaluation: The assessors of each community are responsible for developing a reasonable and realistic program to achieve the fair cash valuation of property in accordance with constitutional and statutory requirements. The nature and extent of that program will depend on the assessors’ analysis and consideration of many factors, including, but not limited to, the status of City of Fort Bragg | Budget Book 2025 Page 421
the existing valuation system, the results of an in-depth sales ratio study, and the accuracy of existing property record information.
Revenue Anticipation Note (RAN): A short-term loan issued to be paid off by revenues, such as tax collections and state aid.
RANs are full faith and credit obligations.
Revenue Bond: A bond payable from and secured solely by specific revenues and thereby not a full faith and credit obligation.
Revolving Fund: Allows a community to raise revenues from a specific service and use those revenues without appropriation to support the service.
Sale of Real Estate Fund: A fund established to account for the proceeds of the sale of municipal real estate other than proceeds acquired through tax title foreclosure.
Stabilization Fund: A fund designed to accumulate amounts for capital and other future spending purposes, although it may be appropriated for any lawful purpose.
Surplus Revenue: The amount by which cash, accounts receivable, and other assets exceed liabilities and reserves.
Tax Rate: The amount of property tax stated in terms of a unit of the municipal tax base; for example, $14.80 per $1,000 of assessed valuation of taxable real and personal property.
Tax Title Foreclosure: The procedure initiated by a municipality to obtain legal title to real property already in tax title and on which property taxes are overdue.
Trust Fund: In general, a fund for money donated or transferred to a municipality with specific instructions on its use. As custodian of trust funds, the treasurer invests and expends such funds as stipulated by trust agreements, as directed by the commissioners of trust funds or by the community's legislative body. Both principal and interest may be used if the trust is established as an expendable trust. For nonexpendable trust funds, only interest (not principal) may be expended as directed.
Uncollected Funds: Recently deposited checks included in an account’s balance but drawn on other banks and not yet credited by the Federal Reserve Bank or local clearinghouse to the bank cashing the checks. (These funds may not be loaned or used as part of the bank’s reserves and they are not available for disbursement.) Undesignated Fund Balance: Monies in the various government funds as of the end of the fiscal year that are neither encumbered nor reserved, and are therefore available for expenditure once certified as part of free cash.
Unreserved Fund Balance (Surplus Revenue Account): The amount by which cash, accounts receivable, and other assets exceed liabilities and restricted reserves. It is akin to a "stockholders’ equity" account on a corporate balance sheet. It is not, however, available for appropriation in full because a portion of the assets listed as "accounts receivable" may be taxes receivable and uncollected. (See Free Cash)
Valuation (100 Percent): The legal requirement that a community’s assessed value on property must reflect its market, or full and fair cash value.
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