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City of Fort Bragg, California
Annual Comprehensive Financial Report
Fiscal Year Ended June 30, 2024
Prepared by City of Fort Bragg City Manager
Isaac Whippy
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City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Table of Contents
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Table of Contents ................................................................................................................................................. i Letter of Transmittal ........................................................................................................................................... vii Organization Chart ............................................................................................................................................ xvi GFOA Certificate of Achievement for Excellence in Financial Reporting ......................................................... xvii Independent Auditors’ Report ............................................................................................................................ 1 Management’s Discussion and Analysis (Required Supplementary Information) .............................................. 4 Basic Financial Statements:
Government‐Wide Financial Statements:
Statement of Net position .................................................................................................................... 21 Statement of Activities ......................................................................................................................... 22 Fund Financial Statements:
Governmental Funds:
Balance Sheet ............................................................................................................................................. 26 Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position .................................................................................................................... 28 Reconciliation of Fund Basis Balance Sheet to Government‐wide Statement of Net Position – Governmental Activities ......................................................................... 29 Statement of Revenues, Expenditures, and Changes
in Fund Balances – Governmental Funds ............................................................................................. 30 Reconciliation of Fund Basis Statements to Government‐wide Statement of Activities ......................................................................................................................... 32 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities ........................................... 33 Statement of Revenues, Expenditures, and Changes in
Fund Balances ‐ Budget to Actual – General Fund and
Major Special Revenue Funds .............................................................................................................. 34 Proprietary Funds:
Statement of Net position – Proprietary Funds ......................................................................................... 39 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds ................................................................................................................................ 40 Statement of Cash Flows – Proprietary Funds ........................................................................................... 41 INTRODUCTORY SECTION
FINANCIAL SECTION
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Table of Contents
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Fiduciary Activities:
Statement of Fiduciary Net position – Fiduciary Activities ......................................................................... 44 Statement of Changes in Fiduciary Net Position – Private Purpose Trust Funds ....................................... 45 Notes to Basic Financial Statements ......................................................................................................... 49 Required Supplementary Information:
Schedule of Changes in Net OPEB Liability and Related Ratios .................................................................. 92 Schedule of Employer Contributions ‐ OPEB .............................................................................................. 93 Schedule of Contributions – Miscellaneous Plan ........................................................................................ 94 Schedule of Contributions – Safety Plan ..................................................................................................... 95 Schedule of City’s Proportionate Share of Net Pension Liability – Miscellaneous Plan ............................................................................................................................... 96 Schedule of City’s Proportionate Share of Net Pension Liability – Safety Plan ............................................................................................................................................ 97
Other Supplemental Information:
Combining and Individual Fund Financial Statements and Schedules:
Non‐major Governmental Funds:
Combining Balance Sheet – Nonmajor Governmental Funds .................................................................. 101 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds .......................................................................... 102 Combining Balance Sheet – Nonmajor Special Revenue Funds ............................................................... 106 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Special Revenue Funds ...................................................................... 110 Combining Balance Sheet – Federal and State Grant Special Revenue Funds ........................................ 114 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Federal and State Grant Special Revenue Funds ................................................. 116 Combining Balance Sheet – Non‐major Capital Projects Funds ............................................................... 118 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non‐major Capital Projects Funds ....................................................................... 119 Internal Service Funds:
Combining Statement of Net position – Internal Service Funds .............................................................. 121 Combining Statement of Revenues, Expenses, and Changes
in Net Position – Internal Service Funds ............................................................................................ 122 Combining Statement of Cash Flows – Internal Service Funds ................................................................ 123 City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Table of Contents
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Financial Trends
Net Position by Component ...................................................................................................................... 126 Change in Net Position .............................................................................................................................. 128 Fund Balances of Governmental Funds .................................................................................................... 132 Changes in Fund Balances of Governmental Funds .................................................................................. 134 Governmental Fund Tax Revenues by Source .......................................................................................... 136 Revenue Capacity
Principal Sales Tax Producers .................................................................................................................... 137 Historical Sales Tax Amounts by Benchmark Year .................................................................................... 138 Assessed Value and Estimated Actual Value of Taxable Property, City Wide .......................................... 140 Assessed Value of Property by Use Code, City Wide ................................................................................ 141 Direct and Overlapping Property Tax Rates .............................................................................................. 142 Principal Property Taxpayers .................................................................................................................... 144 Property Tax Levies and Collections ......................................................................................................... 145 Debt Capacity
Ratios of Outstanding Debt by Type ......................................................................................................... 146 Legal Debt Margin Information ................................................................................................................. 148 Direct and Overlapping Debt .................................................................................................................... 150 Pledged Revenue Coverage ...................................................................................................................... 152 Demographic and Economic Information
Demographic and Economic Statistics ...................................................................................................... 154 Principal Employers ................................................................................................................................... 155 Operating Information
Full‐Time and Part‐Time City Employees by Function (Full‐Time Equivalent) .......................................... 156 Operating Indicators by Function ............................................................................................................. 157 Capital Asset Statistics by Function .......................................................................................................... 158 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With
Government Auditing Standards ............................................................................................... 159 Statistical Section
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INTRODUCTORY SECTION
Letter of Transmittal
Organizational Chart, Elected and Appointed Officials vi
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April 25, 2025
The Honorable City Council
City of Fort Bragg
Transmittal of the Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024 To the Citizens of the City of Fort Bragg, Honorable Mayor, and Members of the City Council:
We are pleased to present the Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2024. This report has been prepared in accordance with generally accepted accounting principles (GAAP) and the standards established by the Governmental Accounting Standards Board (GASB) to provide a complete and transparent view of the City’s financial position and operations.
Management is responsible for the accuracy, completeness, and fairness of the data presented in this report, as well as for establishing and maintaining a system of internal control designed to provide reasonable assurance regarding the integrity of the financial statements. These internal controls are structured to ensure that the City’s financial reporting is accurate and that assets are safeguarded from loss or misuse.
The City's financial statements have been audited by JJACPA, Inc., an independent firm of certified public accountants fully licensed and qualified to perform audits of California local governments. The audit was conducted in accordance with generally accepted auditing standards and Government Auditing Standards. The auditors have issued an unmodified (“clean”) opinion, stating that the City’s financial statements are fairly presented in conformity with U.S. GAAP. Their independent auditor’s report is included at the beginning of the Financial Section of this report.
Following the auditor’s report, the Management’s Discussion and Analysis (MD&A) provides a narrative overview and analysis of the City’s financial activities for the year. It is intended to complement this letter of transmittal and should be read in conjunction with the financial statements for a complete understanding of the City’s fiscal condition.
This report includes the financial activities of the City of Fort Bragg, the Fort Bragg Redevelopment Successor Agency, and the Fort Bragg Municipal Improvement District No. 1 (MID). Although the Successor Agency and MID are legally separate entities, they are included as blended component units due to the City Council’s role as their governing board and the close financial relationship they share with the City. A more detailed description of the City’s component units is provided in the MD&A and the Notes to the Financial Statements Discussion and Analysis (MD&A) and the Notes to the Basic Financial Statements on pages 4‐17 and 49‐90, respectively.
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Profile of the Government
Incorporated in 1889, the City of Fort Bragg is located on the scenic Mendocino Coast, approximately 165 miles north of San Francisco. With a population of 6,983 (Census 2023), it is the largest city along the Northern California coast between San Francisco and Eureka. The City spans 2.7 square miles and is known for its mild climate, historic charm, and oceanfront attractions, making it a popular destination for tourism and recreation.
Fort Bragg is a general law city governed under the Council‐Manager system. The five‐member City Council is elected at‐large to four‐year staggered terms, with the Mayor selected by the Council every two years. The City Council appoints the City Manager, who oversees daily operations, enforces City policy, and manages all municipal departments and personnel.
The City provides a broad range of services including police protection, water and wastewater services, street and infrastructure maintenance, community development, and administrative operations. It also operates the C.V. Starr Community Center, supporting recreation and wellness programs. The City participates in various special districts and Joint Powers Authorities (JPAs) that offer services such as wastewater treatment and fire protection. Other regional partners—such as the school district, hospital district, and harbor district— complement the City’s service network.
Fort Bragg's annual budget is a key policy and financial tool, aligning City resources with Council priorities. It guides the delivery of services and infrastructure investments, while maintaining compliance with state law and local fiscal policies. The City Manager is responsible for preparing and administering the budget, including capital improvement planning and year‐round budget monitoring. Internal controls and regular budget reviews ensure transparency and fiscal responsibility.
Key employment sectors include healthcare, public education, local government, retail, and tourism. The City is actively engaged in strategic initiatives focused on housing, broadband infrastructure, sustainability, and long‐term economic resilience.
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, 2024, 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 2023/24.
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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 2024, these two revenue streams collectively constitute 55% of the City's General Fund revenue.
In FY 22, General Fund Tax Revenues continued the strong trends from the prior year beating pre‐pandemic 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 2024. TOT revenue receipts declined by 10% compared to the prior quarter. Sales tax revenues for the first quarter of FY 2024/23 were also down by 2%.
U.S. Economy Overview
As of early 2025, the U.S. economy continues to demonstrate modest but stable growth. Real GDP grew at an annualized rate of 2.1% in Q4 2024, reflecting continued consumer spending, a gradual recovery in manufacturing, and moderate gains in business investment. Inflation, which had been a key economic pressure in recent years, has cooled, with the Consumer Price Index (CPI) hovering around 2.6% year‐over‐ year—a level more aligned with the Federal Reserve's long‐term targets.
Labor markets remain strong, though job growth is beginning to normalize. The national unemployment rate stands at approximately 3.9%, up slightly from earlier lows but still indicative of a healthy employment environment. The Federal Reserve has taken a cautious approach to interest rates, holding the federal funds rate steady at 4.75% as it monitors inflation trends and seeks to avoid triggering a recession.
However, growing uncertainty around international trade policy—particularly the threat of new tariffs on key imported goods—has introduced potential downside risk to the economic outlook. Heightened tensions with major trading partners have raised concerns about supply chain disruptions, cost pressures for businesses, and reduced consumer purchasing power. If implemented, these tariff measures could contribute to a slowdown in economic growth and increase the risk of recession in the latter half of 2025.
Consumer confidence has improved marginally, though household budgets remain tight due to persistent housing and energy costs. Housing affordability remains a top concern nationwide, with impacts felt across both urban and rural communities.
California Economy
California’s economy continues to outperform the national average in key sectors such as technology, entertainment, and clean energy. However, the state also faces several challenges, including high housing costs, a cooling real estate market, and ongoing outmigration from major metro areas. As of Q1 2025, California’s unemployment rate stands at approximately 4.6%, slightly above the national average, reflecting a diverse and evolving labor market.
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Wage growth remains solid, particularly in the healthcare, logistics, and professional services sectors.
However, the state’s fiscal outlook faces moderate pressure due to reduced capital gains tax revenues and the lingering financial impacts of pandemic‐era expenditures. Despite these headwinds, state and local investments in climate resilience, infrastructure, and affordable housing are expected to drive regional economic activity and strengthen long‐term competitiveness. Retail sales have modestly rebounded following a subdued holiday season, and tourism continues its steady recovery, with domestic travel playing a key role in supporting coastal and rural economies.
A growing area of concern is the impact of potential new federal tariffs, which pose risks to California’s trade‐ dependent sectors—especially agriculture, technology manufacturing, and port logistics. Escalating trade tensions could disrupt exports, increase input costs, and slow business investment. Given California's status as a global trade hub, these developments could have disproportionate economic effects across the state if such policies are implemented.
While drought conditions have eased compared to recent years, water infrastructure and long‐term supply planning remain critical challenges for both urban and agricultural regions.
Local Unemployment Rate
Until March 2020, the City experienced five consecutive years of strong employment growth and historically low unemployment rates. However, like much of the nation, Fort Bragg was significantly impacted by the COVID‐19 pandemic, with unemployment peaking at 14% in April 2020. Conditions gradually improved through FY 2021 as local businesses and services reopened.
As of January 2025, Fort Bragg's unemployment rate had declined to approximately 4.2%, signaling continued recovery. However, like many communities, Fort Bragg faces ongoing workforce challenges, particularly in maintaining adequate staffing levels across sectors such as hospitality, healthcare, and retail. The statewide unemployment rate for California stood at 5.2%, reflecting broader labor market shifts and regional disparities in job availability and cost of living.
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Real‐ Estate Market
Following a period of post‐pandemic highs marked by record median home prices and brisk sales activity, Fort Bragg's real estate market began a noticeable correction in late 2023. That downward trend continued through 2024, with year‐over‐year transaction volumes declining across most months.
The Federal Reserve’s ongoing efforts to curb inflation resulted in sustained higher interest rates throughout 2024, pushing mortgage rates to levels not seen in over a decade. This had a direct impact on buyer affordability and overall market activity.
According to data from the Coastal Mendocino Association of Realtors, as of June 2024, the median single‐ family home price had declined by 47% compared to June 2023. This sharp drop followed seven consecutive months of year‐over‐year price decreases, signaling a broader market reset. Additionally, properties are now remaining on the market longer. Whereas homes typically sold within 14 days during the 2021–2023 peak, the average time on market increased to approximately 30 days throughout 2023–2024. Inventory levels have also grown slightly, reflecting more cautious buyer behavior and affordability concerns. As of January 2025, the market remains cool but stable, with some signs of price stabilization emerging. Demand is expected to remain soft until interest rates moderate or broader economic conditions improve.
Economy
The City of Fort Bragg continues to pursue opportunities to diversify and strengthen its local economy through strategic initiatives that support business growth, resilience, and innovation. In July 2024, the City established a dedicated Economic Development Department, a significant step in institutionalizing long‐term strategies to attract investment, support local entrepreneurs, and revitalize key commercial corridors. This department now serves as a central hub for business support, coordination of grant and loan programs, and policy development to improve the City’s overall economic vitality. 0 50
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Total Home Sales in Zip Code 95437
Home Sales
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Building on efforts launched in FY 2021 and continuing into FY 2025, the City has expanded economic development incentives for small businesses, particularly in the Central Business District (CBD)—an area heavily impacted by pandemic‐related closures. These incentives include waivers for water and sewer capacity fees for food service establishments, façade improvement grants, downtown beautification programs, targeted code enforcement outreach, and curated events and promotions to draw both residents and visitors to the area.
The City has also strengthened its water resiliency through a series of forward‐thinking infrastructure investments. These include the the innovative Oneka desalination buoy system, construction of three new water reservoirs, and major upgrades to the City’s water treatment plant. These projects help ensure a reliable, drought‐resistant water supply for residents, businesses, meet future expansion demands and emergency needs—positioning Fort Bragg as a leader in climate adaptation and resource management on the North Coast.
In addition to physical infrastructure, the City reached a major organizational milestone with the completion of its 2024–2029 Strategic Plan. Developed through extensive community engagement and interdepartmental collaboration, the Strategic Plan outlines clear goals and priorities that will guide City operations, capital investments, and policy decisions over the next five years. This plan reinforces the City’s commitment to transparency, sustainability, fiscal responsibility, and community well‐being.
Fort Bragg has also made significant strides in addressing homelessness and mental health challenges through the expansion of its CARE (Community Assistance, Recovery, and Engagement) response unit. This program emphasizes compassionate, trauma‐informed care and provides coordinated outreach and support services for individuals experiencing homelessness, behavioral health crises, or substance use issues. The CARE unit works closely with law enforcement, health providers, and local nonprofits to connect individuals to housing, treatment, and long‐term support—offering an alternative to traditional emergency response models and helping reduce pressure on police and emergency medical services.
In parallel, the City has made transformative progress in addressing the digital divide through the development of a City‐run municipal broadband utility. The COVID‐19 pandemic underscored the urgent need for affordable, reliable internet access, particularly in rural communities. Residents, students, and businesses in Fort Bragg faced significant challenges in remote work, distance learning, and business operations due to outdated and underperforming private broadband infrastructure.
In response, the City completed a Broadband Utility Feasibility Study, which confirmed the viability of establishing a publicly owned broadband utility to ensure equitable access to high‐speed internet. In FY 2024, the City allocated $10.3 million in Build Back America Funds through the CPUC toward the development of this critical infrastructure. As of FY 2025, the City has begun implementing the municipal broadband project, including network design, initial construction, purchasing MCN and customer onboarding strategies.
Additional funding is being pursued through debt financing, state and federal infrastructure programs that prioritize broadband expansion in underserved areas.
Together, these initiatives reflect Fort Bragg’s commitment to building a resilient, inclusive, and forward‐ looking economy—one that honors its coastal heritage while embracing sustainability, innovation, and connectivity for the future.
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Long‐term Financial Planning
A review of the City's Fiscal Policies, including Fund Balance & Reserve Policies, was conducted as part of the FY 2024 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 2024, these reserves total $7,381,363.
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 2024, the reserve remains funded at $1,989,419. Litigation Reserve: The City will maintain a $200,000 Litigation Reserve to cover unforeseen legal expenses, including unbudgeted settlement costs that are not covered by the City's insurance pool. At Fiscal Year‐end 2024, 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 2024, the reserve balance remains at $489,929. In the Fiscal Year 2024 Budget Development, the reserve policy was increased to 10%.
Like many municipalities nationwide, the City of Fort Bragg continues to navigate fiscal challenges while striving to maintain essential services for its residents. Traditional funding sources for parks, public safety, and community development have diminished or disappeared, notably due to the dissolution of the Redevelopment Agency by the State and significant reductions in federal and state grant programs. Pension costs remain a substantial concern for the City's financial planning. In response, the City has implemented several measures to address these fiscal challenges. Notably, in FY 2014/15, the City was able to offer modest salary increases to all employee groups for the first time since the 2008 financial downturn. Labor agreements from FY 2019/20 through FY 2024 have continued these moderate cost‐of‐living adjustments. The City Council has also established two key financial policies: the "Recession Reserve" and the "Pension Funding Policy," aimed at enhancing the City's fiscal resilience.
Through diligent efforts and fiscal discipline, the City Manager and City Council successfully passed balanced budgets for FY 2018/19 and FY 2019/20, marking the first such achievements in many years. These balanced budgets were attained despite trade‐offs, including reductions in services and the elimination or downgrading of certain positions. Meanwhile, the Other Postemployment Benefits (OPEB) trust fund has been consistently pre‐funded, positioning the City to begin drawing from it to offset increasing costs in the coming years.
Since the FY 2017/18 budget, the City's Finance Department has prepared a five‐year budget forecast for the General Fund, updated annually prior to the mid‐year budget review. Beginning with the FY 2019/20 budget, this forecast has been incorporated into the main budget document. The forecast indicates that recent improvements in tax revenues will support balanced budgets in the midterm; however, the General Fund is projected to operate at a deficit starting in FY 2026/27. xiv
The City's General Fund experienced a record surplus in FY 2021, with the fund balance improving by nearly $1.5 million. This surplus resulted from early pandemic‐related budget cuts, which reduced staff and services, and increased transient occupancy tax (TOT) and sales tax revenues as tourism rebounded. In May 2023, the City laid off four full‐time employees, froze two positions in the Police Department, and furloughed another twelve employees to 50–75% of their regular hours. Furloughed staff returned to full‐time status in August 2023, but several laid‐off positions remain vacant. Additionally, the City did not replace two positions (Finance Director and Assistant City Engineer) that became open in late June. As the demand for City services continues to grow, Fort Bragg faces challenges similar to many other employers in recruiting and retaining qualified staff.
In FY 2022, General Fund tax revenues continued their strong performance from the prior year, surpassing previous figures. The accumulated fund balance for the General Fund reached $5,091,306. The City adopted a balanced General Fund budget for FY 2024, projecting a modest surplus of $198,000. While the surplus was small, the budget included $150,000 to pay down pension obligations and was based on relatively conservative revenue projections. Both TOT and sales tax revenues are outpacing FY 2023, which set records for both revenue sources.
A significant initiative in FY 2023 was the development and adoption of a Pension Funding Policy. Like many California cities, Fort Bragg continues to experience substantial increases in its unfunded liability payments with minimal reduction in the overall unfunded liability. As of June 30, 2024, the City's net pension liability stands at $5.6 million, reduced from $10.7 million. In 2023, the City issued $11.4 million in taxable Lease Revenue Bonds, allocating $7.5 million to reduce the City's unfunded pension liability. The California Public Employees' Retirement System (CalPERS) reported a preliminary net return of 9.3% on its investments for the 12‐month period ending June 30, 2024, surpassing the discount rate of 6.8% and improving the overall funded status to an estimated 75%.
To further mitigate pension‐related risks, the City Council approved the establishment of a Section 115 Trust in FY 2023, investing over $2 million to buffer against potential future losses by CalPERS. These proactive measures place the City in a stronger position to manage pension obligations and enhance long‐term fiscal stability.
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. xv
Certificate of Achievement
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024. 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.
Acknowledgments
The timely preparation of this Annual Comprehensive Financial Report would not have been possible without the support and collaboration of many dedicated City of Fort Bragg staff members. Special recognition is extended to the Finance Department staff, whose hard work and commitment have ensured the continued delivery of high‐quality financial information to our residents, the City Council, and other stakeholders.
I would also like to express my appreciation to the Mayor and City Council for their leadership, engagement, and consistent support in guiding the City’s financial operations with both responsibility and responsiveness.
Respectfully submitted,
Isaac Whippy
City Manager
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Organization Chart
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Current City Council members and the dates upon which their respective terms expire are as follows:
Mayor Jason Godeke December 2026
Vice Mayor Marcia Rafanan December 2026
Councilmember Tess Albin‐Smith December 2026
Councilmember Lindy Peters December 2028
Councilmember Scott Hockett December 2028
RESIDENTS OF CITY OF FORT BRAGG
CITY COUNCIL
City Council
Committees
Planning
Commission
ADMIN
SERVICES
PUBLIC
WORKS
FINANCE
Jason Godeke
Mayor
COMMUNITY
DEV’PMT POLICE
CITY
ATTORNEY
Marcia
Rafanan
Vice ‐Mayor
CITY
MANAGER
Lindy Peters
Councilmember
Scott Hockett
Councilmember
Tess Albin‐Smith
Councilmember
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FINANCIAL SECTION
Independent Auditor’s Report
Management’s Discussion and Analysis
Basic Financial Statements
Notes to the Basic Financial Statements
Required Supplementary Information
Combining and Individual Fund Statements and Schedules This page intentionally left blank.
7080 Donlon Way, Suite 204, Dublin, CA 94568 ● phone (925) 556-6200 ● fax: (707) 232-6226 1102 South Main Street, #1, Fort Bragg, CA 95437 ● phone (707) 964-6325 www.jjacpa.com
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, 2024, 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, 2024, 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 and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 4–17, the Schedule of Changes in the Net OPEB Liability and Related Ratios on page 92, the Net OPEB Liability Schedule of Contributions on page 93, the City’s Schedules of Contributions, Pensions on pages 94-95, and the Schedules of the City’s Proportionate Share of the Net Pension Liability on pages 96-97, 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 April 25, 2025, 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
April 25, 2025 JJACPA, Inc.
Dublin, CA
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2024
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, 2024. It should be read in conjunction with the accompanying transmittal letter and basic financial statements.
FINANCIAL HIGHLIGHTS
The City's net position increased by $4.7 million (assets exceeded liabilities) to $110 million as of June 30, 2024.
The net position for governmental activities ended the year at $50.3 million, while the net position for business activities was $59.6 million. Of the $44.8 million in total governmental net position, a negative $424,308 was characterized as an unrestricted net position. The City's governmental funds reported a combined fund balance of $15.5 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 $4.6 million. General fund revenues grew by $2.7 million, reflecting positive trends in several key categories including intergovernmental revenue, reimbursements, and use of money and property. General fund expenditures decreased by $2.5 million from 2023 to 2024. This reduction is largely driven by significant decreases in debt principal payments, offset by significant increases in general government and public safety expenditures.
Additional information and analysis on the financial highlights follow in the sections and tables below.
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, 2024
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, 2024
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, 2024, 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, 2024, 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 34.
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, 2024
Management’s Discussion and Analysis
7 OVERVIEW OF THE ANNUAL FINANCIAL REPORT, Continued
Fund Financial Statements, Continued
ENTERPRISE‐TYPE FUNDS:
Water enterprise Fund
Wastewater enterprise Fund
CV Starr Center enterprise Fund
Notes to the Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the Government‐wide and Fund Financial Statements. The notes to the basic financial statements may be found on pages 49‐90 of this report. Required Supplementary Information follows the notes on page 92.
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 101‐119 of this report. Combining statements for internal services funds are presented on pages 121‐123.
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2024
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, 2024, and June 30, 2023.
Govern‐ Business‐ Govern‐ Business‐
mental type mental type
Activities Activities Total Activities Activities Total Current and other assets 22,128,295 $ 10,165,062 $ 32,293,357 $ 19,117,548 $ 12,134,791 $ 31,252,339 $ Noncurrent assets 44,879,778 56,606,370 101,486,148 42,156,106 55,382,819 97,538,925 Total assets 67,008,073 66,771,432 133,779,505 61,273,654 67,517,610 128,791,264 Deferred outflows of resources 5,684,493 467,809 6,152,302 7,773,576 145,891 7,919,467 Total assets and deferred outflows of
resources 72,692,566 67,239,241 139,931,807 69,047,230 67,663,501 136,710,731 Current and other liabilities 1,386,262 2,130,873 3,517,135 1,796,839 1,422,873 3,219,712 Long‐term liabilities 16,395,469 5,075,628 21,471,097 16,412,188 4,844,021 21,256,209 Total liabilities 17,781,731 7,206,501 24,988,232 18,209,027 6,266,894 24,475,921 Deferred inflows of resources 4,615,634 466,995 5,082,629 5,984,579 1,131,938 7,116,517 Total liabilities and deferred inflows of
resources 7,673,496 22,397,365 30,070,861 24,193,606 7,398,832 31,592,438 Net position:
Net investment in
Capital Assets 44,879,778 52,050,370 96,930,148 42,156,106 50,401,819 92,557,925 Restricted 5,839,731 108,064 5,947,795 6,754,806 108,064 6,862,870 Unrestricted (deficit) (424,308) 7,407,311 6,983,003 (4,057,288) 9,754,786 5,697,498 Total net position $ 59,565,745 50,295,201 $ 109,860,946 $ 44,853,624 $ 60,264,669 $ 105,118,293 $ 2024 2023
Summary of Net Position
Analysis of Net Position
As of June 30, 2024, the City's net position was $110 million, an increase of $4.7 million. The overall change in net position is largely due to the increase in investment in capital assets for both Governmental and business‐ type activities, which increased by $4.4 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.
Net investment in capital assets: The largest portion (88%) of the City of Fort Bragg's net position is invested 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 2024 by $4.4 million to a total of $97 million. The increase reflects capital outlay in multiple projects, including the infrastructure improvements for the Streets Project ($3.2 million), the Water Treatment Plant Upgrade project ($1.5 million), the Distribution System Rehabilitation ($366k).
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Management’s Discussion and Analysis
9 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, continued
The restricted net position of $4.1 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.
Unrestricted net position: The Unrestricted net position increased by $1.3 million over the previous year and now stands at $7 million, a 23% increase primary due to an increase in Governmental activities total assets.
Analysis of Assets and Liabilities
Total assets & liabilities: Year over year, assets increased by $5 million, and liabilities increased by $512,311.
The increase in total liabilities $25 million is mostly due to increases in net OPEB and pension obligations.
Deferred outflows: 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 two deferred outflows: 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 $1.8.
Deferred inflows: Deferred inflows are defined as an acquisition of a net position by a government applicable to a future reporting period. Although not entirely the same, deferred inflows are similar in nature to liabilities. The City currently has two deferred inflows: a deferred inflow related to reporting the City's OPEB liability and a deferred inflow pertaining to reporting the City's pension plan liability. The City's deferred inflows decreased by $2 million.
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Management’s Discussion and Analysis
10 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Analysis of Statement of Activities
Change in net position (net revenue) of the Primary Government (governmental and business‐type activities) increased 5% to $110 million from $105 million in prior year. The increase is largely driven by lower expenses for community development and waste water. The following table shows the revenue, expenses, and changes in net position for governmental and business‐type activities:
Govern ‐ Business‐ Govern‐ Business‐
mental type mental type
Activities Activities Total Activities Activities Total Revenues:
Program revenues:
Charges for services 5,737,381 $ 7, $ 13,139,629 402,248 $ 4,170,768 $ 7,204,653 $ 11, $ 375,421 Grants and contributions:
Operating 2,799,940 ‐ 2,799,940 6,286,672 ‐ 6, 286,672 Capital 1,674,319 350 1,674,669 2,400,000 ‐ 2, 400,000 General revenues:
Property taxes and assessments 1,272,386 1,582,213 309,827 1,208,010 305,258 1, 513,268 Sales and use tax 3,260,936 1, 4,430,518 169,582 3,322,453 1,175,441 4, 497,894 Transient occupancy taxes 3,092,214 ‐ 3,092,214 3,192,486 ‐ 3, 192,486 Other taxes 974,149 ‐ 974,149 953,025 ‐ 953,025 Unrestricted investment earnings 659,402 1,154,500 495,098 (277, 312,426 728) 34,698 Other general 1,172,214 ‐ 1,172,214 831,900 ‐ 831,900 Total revenues 20,642,941 9, 30,020,046 377,105 22,087,586 8,997,778 31, 085,364 Expenses:
Governmental activities:
General government 3,795,646 ‐ 3,795,646 2,999,433 ‐ 2, 999,433 Public safety 5,981,475 ‐ 5,981,475 5,646,925 ‐ 5, 646,925 Public works 3,927,091 ‐ 3,927,091 3,578,966 ‐ 3, 578,966 Community development 1,219,080 ‐ 1,219,080 5,889,971 ‐ 5, 889,971 Marketing and promotion 237,178 237,178 210,230 210,230 Interest and fiscal charges 244,957 ‐ 244,957 532,466 ‐ 532,466 Business‐type activities:
Water ‐ 3, 3,357,505 357,505 ‐ 3,034,244 3, 034,244 Wastewater ‐ 3, 3,639,203 639,203 ‐ 4,727,326 4, 727,326 C.V. Starr Center ‐ 2, 2,875,258 875,258 ‐ 2,592,705 2, 592,705 Total expenses 15,405,427 9, 25,277,393 871,966 18,857,991 10,354,275 29, 212,266 Excess (Deficiency) of revenues over
expenditures before transfers 5,237,514 ( 4,742,653 494,861) 3,229,595 (1,356, 1, 497) 873,098 Transfers 204,063 ( ‐ 204,063) 150,000 (150, ‐ 000) Change in net position 5,441,577 ( 4,742,653 698,924) 3,379,595 (1,506, 1, 497) 873,098 Net position:
Beginning of year 44,853,624 60, 264,669 41,474,029 105,118,293 61,771,166 103, 245,195 End of year 50,295,201 $ 59, $ 565,745 $ 44,853,624 109,860,946 $ 60,264,669 $ 105, $ 118,293 2024 2023
Changes in Net Position
Revenues
The City's total revenues for governmental and business‐type activities were $30 million for the fiscal year that ended June 30, 2024, representing a ‐3% decrease over the previous fiscal year. Revenues are divided into two categories: program revenues and general.
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Management’s Discussion and Analysis
11 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Program revenues had an overall decrease of $2.5 million or ‐12%, from the prior year. Charges for services increased by $1.8 million or 16% compared to the previous fiscal year, primarily due to governmental activities. Governmental activities charges for services include mostly salary, benefit, and overhead charges to the business‐type activities, inter‐fund reimbursements, and charges to various grants for staff time and administrative costs reimbursements. Operating grants and contributions decreased by $3.5 million, or ‐ 55% largely due to the Community Development Block Grant (CDBG) close out that funded the Parents & Friends Facility project.
Capital contributions and grants decreased by $725,331 or ‐30% due to close out of a Permanent Local Housing Allocation (PLHA) grant, offset by new funding for public work from the State Department of Water Resources.
General revenues had an overall increase of $1.4 million or 13%, from the prior year. This was largely driven by an increase in investment earnings.
Unrestricted investment earnings increased by $1,1 million showing a massive 3227% growth. This stemmed from improved investment strategies, and better market performance. Property taxes increased by $68,945, which is a 5% growth, which indicate stable and predictable revenue from property taxes.
Sales & use tax decreased by $67,376, reflecting a ‐1% decline, suggesting a slight dip in consumer spending or sales activities.
Transient occupancy tax (TOT) decreased by $100,272, marking a ‐3% decrease, pointing to a reduction in tourism.
Other taxes increased by $21,124, or 2%.
Other general revenue increased by $340,314, or 41%.
Revenues by source for the fiscal years ended June 30, 2024, and 2023, are as follows:
Charges for
Services
Capital
Grants
Sales & Use
Tax
Transient
Occupancy
Tax
Operating
Grants
Property
Taxes
Franchise
Taxes Other Taxes Interest &other
2024 5,737 1,674 3,261 3,092 2,800 1,272 762 213 1,832
2023 4,171 2,400 3,322 3,192 6,287 1,208 740 213 231
0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
In Thousands
Revenue ‐ Governmental Activities
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Management’s Discussion and Analysis
12 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Expenses
In fiscal year 2024, the City's governmental and business‐type activity expenses amounted to $25.3 million, a 13% or $3.9 million decrease from the previous fiscal year. The most notable reduction is in Community Development ($4.7 million) due to the conclusion of Parents & Friends Facility project that was funded by a Community Development Block Grant (CDBG). This decrease, outweighs the increases in general government, public safety, public works, water enterprise and CV Starr enterprise totaling $2.1 million. Governmental expenses made up 61% of the total costs, amounting to $15.4 million, with public safety and public works being the largest components, followed by general government and community development.
Business‐type activities accounted for $9.9 million, or 39% of the City's total expenses for the fiscal year.
Charges for Services Sales & Use Tax Property Taxes Interest & other 2024 7,402 1,170 310 495
2023 7,205 1,175 305 312
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, 2024
Management’s Discussion and Analysis
13 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
Expense by activity for the fiscal years ended June 30, 2024, and 2023, are as follows:
Public Safety Public Works General
Government
Community
Development
Marketing
and
promotion
Interest and
Fiscal Charges
2024 5,981 3,927 3,796 1,219 237 245
2023 5,647 3,579 2,999 5,890 210 530
0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
In Thousands
Expenses ‐ Governmental Activities
Wastewater Enterprise C.V. Starr Center Water Enterprise 2024 3,639 2,875 3,358
2023 4,727 2,593 3,034
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, 2024
Management’s Discussion and Analysis
14 GOVERNMENT‐WIDE FINANCIAL ANALYSIS, Continued
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, 2024, and 2023 are as follows:
Total Cost Net Cost Total Cost Net Cost
of Services of Services of Services of Services
General government $ 1,477,375 3,795,646 $ 2,999,433 $ 229,199 $ Public safety 5,080,108 5,981,475 5,646,925 5,093,551 Public works (1,025,345) 3,927,091 3,578,966 904,924 Community development (820,486) 1,219,080 5,889,971 (969,819) Marketing and promotions 237,178 237,178 210,230 210,230 Interest and fiscal charges 244,957 244,957 532,466 532,466 Total 15,405,427 $ 5,193,787 $ 18,857,991 $ 6,000,551 $ 2024 2023
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, 2024, the City's governmental funds reported combined fund balances of $15.5 million, an increase of $781,860 over the previous year due to increases in general fund reimbursement revenues, use of money and property and intergovernmental revenues, offset by the close out of the Permanent Local Housing (PLHA).
General Fund
The general fund is the chief operating fund of the City. Overall, the general fund balance increased by $3.2 million to $9.2 million at the end of FY 2024. The general fund unassigned balance totaled $4.7 million— an increase of $3.1 million from the previous year. This resulted from revenue growth of $2.7 million, reflected in several key categories including intergovernmental revenue, reimbursements, and use of money and property. Additionally, expenditures decreased by $2.5 million from 2023 to 2024. This reduction is largely driven by significant decreases in debt principal payments, offset by significant increases in general government and public safety expenditures.
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Management’s Discussion and Analysis
15 FUND FINANCIAL ANALYSIS, Continued
Special Sales Tax – Streets
In Fiscal Year 2024, 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 2022 Street Rehabilitation ($3.1 million).
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
The City has three business‐type activities: Water, Wastewater, and the C.V. Starr Center. Enterprise funds increased the City's net position by $698,924.
The Water Enterprise Fund's net position decreased by $82,000 to $16.6 million. In contrast, the Wastewater Enterprise Fund saw a decrease of $36,000, bringing its net position to $22.8 million. The C.V. Starr Center Enterprise Fund also recorded a decrease of $581,000, ending the year at $20 million.
The Water Enterprise capitalized $1.98 million in construction‐in‐progress costs, primarily related to the Water Treatment Plant project ($1.5 million), which is expected to be completed in FY 2024–25. Additional investments included $283,000 for the Raw Water Line Replacement and $365,000 for the Distribution System. These costs will be fully capitalized upon project completion. Long‐term liabilities declined by $332,000 due to debt payments, though this was partially offset by increased year‐end accounts payable related to contractor invoices. Operating expenditures exceeded revenues by $65,591, resulting in a modest decrease in net position. Nonetheless, the utility continues to generate sufficient revenue to cover operating expenses, maintain reserves, and fund future capital needs.
The Wastewater Enterprise Fund experienced a net operating loss of $581,150, with total expenditures, including depreciation, exceeding operating income. The fund’s long‐term liabilities were reduced due to the payoff of pension obligations. Despite the operating loss, current user fees remain sufficient to cover expenses, support reserves, and fund capital improvements. As with the Water Enterprise, the rate structure is designed to sustain long‐term capital funding and is functioning as intended.
The City of Fort Bragg assumed operational responsibility for the C.V. Starr Community Center in 2023, taking over from the Mendocino Coast Recreation and Park District. The Center is funded through a combination of property tax, sales tax, and user fees. During the fiscal year, operating expenses exceeded operating revenues (primarily membership fees) by $2,155,755. This shortfall was subsidized by non‐operating revenues, including the aforementioned tax support, resulting in a net position decrease to $20 million.
Despite this, operating revenues increased by 23% compared to the prior year, reflecting the highest membership activity to date—a strong indicator of the Center’s growing community engagement and recovery.
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Management’s Discussion and Analysis
16 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 $11.6 million. The fiscal year concluded with actual revenues of $11.7 million, surpassing the budget by $2.7 million. 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 21‐24, 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 1.2% increase.
Reimbursements from Enterprise Funds to the General Fund increased by $1.02 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 Enterprise projects. Additionally, the departments being fully staffed throughout the fiscal year influenced the increase. Reimbursements also included Grant Staff Time reimbursements which included CDBG Grants, CRU reimbursements.
Miscellaneous revenues exceeded the budget by $982k, largely due to a one‐time adjusting journal entry.
This entry was made to correct the City’s book balance as part of the transition from Excel‐based bank reconciliations to the City’s integrated ERP system. The correction, identified during the year‐end process, ensured accurate reporting of the City's financial position.
Expenditures and Fund Balance
General Fund expenditures came in below the final amended budget of $11.9 million by $450,374. Most departments recorded savings, with the exception of the Fire Department, which exceeded its budget by $106,706 due to the first‐quarter annual payment being processed in June 2024. Notable expenditure savings included $614,000 in Public Safety, $274,250 in Administrative and Engineering, and $65,986 in Administrative Services.
The Non‐Departmental category accounts for expenses not tied to a specific City department, such as retiree medical costs, insurance premiums, utilities, and OPEB funding. This category ended the fiscal year under budget by $12,722, primarily due to lower‐than‐expected CIRA liability and property insurance premiums, as well as reduced retiree medical expenses. Additionally, $150,000 was budgeted for a contribution to the Section 115 Trust to offset future pension cost increases. As previously noted, the City established this trust during FY 2023–24 with an initial investment of $1.6 million.
The City of Fort Bragg's Fund Balance and Reserve Policies, adopted by the City Council, require an Operating Reserve of $1.98 million—representing 15% to 25% of the General Fund’s annual operating expenditures.
This reserve provides financial stability, ensures adequate liquidity, and helps mitigate economic uncertainties. The City also maintains a Recession Reserve of $489,000 (5% of the annual operating budget) and a Litigation Reserve of $200,000.
At the close of the fiscal year, the General Fund’s balance stood at $9.5 million, with $1.98 million designated in the Section 115 Trust. This reflects a net increase in fund balance of $3.1 million over the prior year.
City of Fort Bragg, California
Annual Comprehensive Financial Report
For the year ended June 30, 2024
Management’s Discussion and Analysis
17 Capital Assets
The City's investment in capital assets for its Governmental and Business‐type Activities as of June 30, 2024, amounts to $101.5 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:
2024 2023 2024 2023 2024 2022
Land 12,952,262 $ 12,952,262 $ 3,210,698 $ 3,210,698 $ 16,162,960 $ 16,162,960 $ Construction in progress 4,671,669 1,639,441 6,577,339 4,228,017 11,249,008 5,867,458 Buildings 1,370,743 1,061,019 18,716,865 19,165,605 20,087,608 20,226,624 Machinery, equipment and vehicle 1,536,778 2,149,906 1,778,684 1,791,818 3,928,590 3,328,596 Infrastructure 23,735,198 24,966,606 26,322,784 26,986,681 50,057,982 51,953,287 Land improvements ‐ ‐ ‐ ‐ ‐ ‐ Total 44,879,778 $ 42,156,106 $ 56,606,370 $ 55,382,819 $ 101,486,148 $ 97,538,925 $ Governmental Activities Totals Business‐type Activities The City's capital assets experienced a net increase of $3.9 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 of from the wastewater fund was $53,489. The total value of Citywide assets placed in service was $3.03 million, which is offset by $931k 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 55 and Note 5 on page 69 in the Capital Assets section of the financial statements.
Debt Administration
As of June 30, 2024, the City's total outstanding debt was $12.9 million, a decrease from $13.2 million in the previous year. This reduction includes a $374,812 decrease in governmental debt. In October 2023, the City issued Lease Revenue Bonds, utilizing $3.5 million for rehabilitating certain city properties, with this amount returned in the fiscal year 2024. 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 $425k to $4.5 million, mainly due to the Water Enterprise paying off the 2014 Water Revenue Refunding Bonds. Detailed information on the City's outstanding debt and long‐term liabilities can be found in Note 7, pages 70‐72, 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
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BASIC FINANCIAL STATEMENTS
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20 City of Fort Bragg, California
Statement of Net Position
June 30, 2024
Governmental Business-type
Activities Activities Total
ASSETS
Cash and investments $ 9,101,517 11,277,745 $ 20,379,262 $ Restricted cash and investments 108,064 1,787,887 1,895,951 Receivables:
Accounts 836,918 3,870,411 4,707,329
Loans/Notes receivable - 5,185,455 5,185,455
Inventory 118,563 - 118,563
Prepaid items - 6,797 6,797
Total current assets 10,165,062 22,128,295 32,293,357
Capital assets:
Nondepreciable 14,591,703 7,438,715 22,030,418
Depreciable 49,167,655 30,288,075 79,455,730
Total noncurrent assets 56,606,370 44,879,778 101,486,148 Total assets 66,771,432 67,008,073 133,779,505
DEFERRED OUTFLOWS OF RESOURCES
Pension plan 467,809 4,623,681 5,091,490
OPEB, deferred outflow - 1,060,812 1,060,812
Total deferred outflows of resources 467,809 5,684,493 6,152,302 Total assets and deferred outflows $ 67,239,241 72,692,566 $ 139,931,807 $
LIABILITIES
Accounts payable and accrued liabilities 1,851,499 802,856 2,654,355 Interest payable - 171,568 171,568
Unearned revenue 13,844 - 13,844
Deposits payable 159,627 163,369 322,996
Compensated absences - current portion 10,903 58,469 69,372 Due within one year 95,000 190,000 285,000
Total current liabilities 2,130,873 1,386,262 3,517,135 Long-term liabilities:
Compensated absences 526,221 97,987 624,208
Due after one year 4,461,000 7,592,501 12,053,501
Net OPEB obligation 3,170,429 - 3,170,429
Net pension liability 516,641 5,106,318 5,622,959
Total noncurrent liabilities 5,075,628 16,395,469 21,471,097 Total liabilities 7,206,501 17,781,731 24,988,232
DEFERRED INFLOWS OF RESOURCES
Pension plan 466,995 4,615,634 5,082,629
Total deferred inflows of resources 466,995 4,615,634 5,082,629 Total liabilities and deferred inflows 7,673,496 22,397,365 30,070,861
NET POSITION
Net investment in capital assets 52,050,370 44,879,778 96,930,148 Restricted for:
State and Federal Grants - 3,163,592 3,163,592
Special Sales Tax - 406,770 406,770
Asset Forfeiture - 481,482 481,482
Debt Service 108,064 1,787,887 1,895,951
Unrestricted 7,407,311 (424,308) 6,983,003
Total net position 59,565,745 50,295,201 109,860,946
Total liabilities, deferred inflows and net position $ 67,239,241 72,692,566 $ 139,931,807 $ The accompanying notes are an integral part of these basic financial statements. 21 City of Fort Bragg, California
Statement of Activities
For the year ended June 30, 2024
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Primary government:
Governmental activities:
General government $ 2,023,972 3,795,646 $ 153,416 $ 140,883 $ Public safety 287,699 613,668 - 5,981,475
Public works 2,857,183 668,673 1,426,580 3,927,091
Community development 568,527 1,219,080 1,364,183 106,856 Marketing and promotions - 237,178 - -
Interest and fiscal charges - 244,957 - -
Total governmental activities 15,405,427 5,737,381 2,799,940 1,674,319 Business-type activities:
Water 3,056,505 3,357,505 - 350
Wastewater 3,626,640 3,639,203 - -
CV Starr Center 719,103 2,875,258 - -
Total business-type activities 9,871,966 7,402,248 - 350 Total primary government $ 13,139,629 25,277,393 $ 2,799,940 $ 1,674,669 $ 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. 22 Governmental Business-Type
Activities Activities Totals
$ - (1,477,375) $ (1,477,375) $
- (5,080,108) (5,080,108)
- 1,025,345 1,025,345
- 820,486 820,486
- (237,178) (237,178)
- (244,957) (244,957)
- (5,193,787) (5,193,787)
(300,650) - (300,650)
(12,563) - (12,563)
(2,156,155) - (2,156,155)
(2,469,368) - (2,469,368)
(2,469,368) (5,193,787) (7,663,155)
1,272,386 309,827 1,582,213
3,260,936 1,169,582 4,430,518
3,092,214 - 3,092,214
761,576 - 761,576
212,573 - 212,573
495,098 659,402 1,154,500
- 1,172,214 1,172,214
1,974,507 10,431,301 12,405,808
(204,063) 204,063 -
1,770,444 10,635,364 12,405,808
(698,924) 5,441,577 4,742,653
60,264,669 44,853,624 105,118,293
$ 59,565,745 50,295,201 $ 109,860,946 $
Net (Expense) Revenue and
Changes in Net Position
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24 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.
25 City of Fort Bragg, California
Balance Sheet
Governmental Funds
June 30, 2024
CDBG Special
General Program Income Sales Tax
Fund Special Revenue Special Revenue
ASSETS
Cash and investments $ 161,944 5,331,521 $ 201,242 $
Restricted cash and investments 1,787,887 - -
Receivables:
Taxes 1,852 - -
Interest 795 - -
Intergovernmental 3,892 205,528 -
Loans/Notes receivable 2,153,204 - 2,311
Other receivable 1,705,048 - -
Due from other funds 667,821 - -
Prepaid items 6,797 - -
Total assets $ 2,319,835 9,503,237 $ 406,770 $
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 278,963 $ - $ - $ Due to other funds - - -
Deposits payable 45,916 - -
Total liabilities - 324,879 -
Deferred inflows of resources:
Unavailable revenue - 2,089,363 -
Total deferred inflows of resources: 2,089,363 - -
Total Liabilities and deferred inflows 2,089,363 324,879 - Fund balances:
Nonspendable
Prepaids 6,797 - -
Loans/Notes receivable 2,311 - -
Restricted 1,787,887 - 406,770
Committed:
Operating reserve 1,989,419 - -
Recession reserve 489,929 - -
Litigation reserve 200,000 - -
Assigned 230,472 - -
Unassigned (deficit) 4,702,015 - -
Total fund balances 230,472 9,178,358 406,770
Total liabilities, deferred inflows and fund balances $ 2,319,835 9,503,237 $ 406,770 $ Major Funds
The accompanying notes are an integral part of these basic financial statements. 26 Permanent CDBG Street Nonmajor
Local Housing Super NOFA Resurfacing Governmental
Special Revenue Special Revenue Capital Projects Funds Totals $ 34,496 224,131 $ 41,996 $ 4,349,812 $ 10,345,142 $
- - - - 1,787,887
- - - - 1,852
- - - - 795
- - - 1,943,235 2,152,655
- - - 3,029,940 5,185,455
- - - 10,061 1,715,109
- - - - 667,821
- - - - 6,797
$ 34,496 224,131 $ 41,996 $ 9,333,048 $ 21,863,513 $
$ - - $ 47,506 $ 291,048 $ 617,517 $
23,212 26,132 - 618,477 667,821
- - - 117,453 163,369
23,212 - 73,638 1,026,978 1,448,707
- - 2,808,532 4,897,895
- - - 2,808,532 4,897,895
23,212 - 73,638 3,835,510 6,346,602
- - - - 6,797
- - - - 2,311
11,284 - - 3,633,790 5,839,731
- - - - 1,989,419
- - - - 489,929
- - - - 200,000
- 224,131 - 1,907,417 2,362,020
- - (31,642) (43,669) 4,626,704
11,284 224,131 (31,642) 5,497,538 15,516,911
$ 34,496 224,131 $ 41,996 $ 9,333,048 $ 21,863,513 $
Major Funds
27 City of Fort Bragg, California
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position
June 30, 2024
Total fund balances - total governmental funds $ 15,516,911 42,599,501
Compensated absences (584,690) $
Lease payable (7,782,501)
Net OPEB obligation (3,170,429)
Net pension liability (5,106,318) (16,643,938)
4,897,895
(171,568)
Deferred outflows, Pension 4,623,681
Deferred inflows, Pension (4,615,634)
Deferred outflows, OPEB 1,060,812
Deferred inflows, OPEB - 1,068,859
Current assets 932,603
Noncurrent assets 2,280,277
Accounts payable and accrued liabilities (185,339) 3,027,541 Net Position of governmental activities $ 50,295,201
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 28 City of Fort Bragg, California
Reconciliation of Fund Basis Balance Sheet to Government-wide Statement of Net Position Governmental Activities
June 30, 2024
Governmental Internal
Funds Changes Services Statement of
Balance Sheet Reclassifications in GAAP Balances Net Position ASSETS
Current assets:
Cash and investments $ - 10,345,142 $ - $ 932,603 $ 11,277,745 $ Restricted cash and investments - 1,787,887 - - 1,787,887 Receivables:
Taxes - 1,852 - - 1,852
Interest - 795 - - 795
Intergovernmental - 2,152,655 - - 2,152,655
Other receivable - 1,715,109 - - 1,715,109
Loans/Notes receivable - 5,185,455 - - 5,185,455
Due from other funds 667,821 - (667,821) - -
Internal balances - - - - -
Prepaid items - 6,797 - - 6,797
Total current assets 21,863,513 - (667,821) 932,603 22,128,295 Noncurrent assets:
Capital assets, net - - 42,599,501 2,280,277 44,879,778 Total noncurrent assets - - 42,599,501 2,280,277 44,879,778
DEFERRED OUTFLOWS OF RESOURCES
Pension plan - - 4,623,681 - 4,623,681
OPEB - - 1,060,812 - 1,060,812 Total assets and deferred outflows of resources $ 21,863,513 $ 48,283,994 (667,821) $ 3,212,880 $ 72,692,566 $
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities $ - 617,517 $ - $ 185,339 $ 802,856 $ Interest payable - - 171,568 - 171,568
Due to other funds 667,821 - (667,821) - - Deposits payable - 163,369 - - 163,369 Compensated absences - current portion - - 58,469 - 58,469 Due within one year - - 190,000 - 190,000 Total current liabilities 1,448,707 420,037 (667,821) 185,339 1,386,262 Noncurrent liabilities:
Long-term liabilities:
Compensated absences - - 526,221 - 526,221
Due after one year - - 7,592,501 - 7,592,501
Landfill post-closure - - - - -
Net OPEB obligation - - 3,170,429 - 3,170,429
Net pension liability - - 5,106,318 - 5,106,318
Total noncurrent liabilities - - 16,395,469 - 16,395,469 Total liabilities 1,448,707 16,815,506 (667,821) 185,339 17,781,731
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue - 4,897,895 - (4,897,895) -
Pension Plan - - 4,615,634 - 4,615,634
OPEB, deferred inflow - - - - -
Total liabities and deferred inflows: 6,346,602 16,533,245 (667,821) 185,339 22,397,365
FUND BALANCES/NET POSITION
Fund balances:
Nonspendable 9,108 - (9,108) - -
Restricted 5,839,731 - (5,839,731) - -
Committed 2,679,348 - (2,679,348) - -
Assigned 2,362,020 - (2,362,020) - -
Unassigned (deficit) 4,626,704 - (4,626,704) - - - Net position: - Net investment in capital assets - - 42,599,501 2,280,277 44,879,778 Restricted - - 5,839,731 - 5,839,731
Unrestricted 15,516,911 - 747,264 (16,688,483) (424,308) Total fund balances/net position - 15,516,911 31,750,749 3,027,541 50,295,201 Total liabilities, deferred inflows and net position $ 21,863,513 $ 48,283,994 (667,821) $ 3,212,880 $ 72,692,566 $ The accompanying notes are an integral part of these basic financial statements. 29 City of Fort Bragg, California
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2024
CDBG Special
General Program Income Sales Tax
Fund Special Revenue Special Revenue
REVENUES:
Taxes and assessments $ - 7,436,640 $ 1,108,102 $
Licenses and permits - 85,223 -
Fines and forfeitures - 33,690 -
Intergovernmental - 871,995 -
Use of money and property 304,698 574,291 -
Charges for services - 87,920 -
Reimbursements - 4,383,346 -
Other revenues - 1,002,689 -
Total revenues 304,698 14,475,794 1,108,102
EXPENDITURES:
Current:
General government 3,234,288 - -
Public safety 4,510,841 - -
Public works 1,503,103 - 654,030
Community development 430,664 19,026 -
Marketing and promotions 237,178 - -
Cost allocations 1,130,070 - -
Capital outlay - - -
Debt service:
Principal - 195,000 -
Interest and fiscal charges - 244,957 -
Total expenditures 19,026 11,486,101 654,030
REVENUES OVER (UNDER)
EXPENDITURES 285,672 2,989,693 454,072
OTHER FINANCING SOURCES (USES):
Proceeds from sales of assets 25,377 - -
Transfers in 852,101 - -
Transfers out (664,150) (173,896) (2,526,604)
Total other financing sources (uses) (173,896) 213,328 (2,526,604) Net change in fund balances 111,776 3,203,021 (2,072,532) FUND BALANCES (DEFICITS):
Beginning of year 5,975,337 118,696 2,479,302
End of year $ 230,472 9,178,358 $ 406,770 $
Major Funds
The accompanying notes are an integral part of these basic financial statements. 30 Permanent CDBG Street Other
Local Housing Super NOFA Resurfacing Governmental
Special Revenue Special Revenue Capital Projects Funds Totals $ - - $ - $ 54,943 $ 8,599,685 $
- - - - 85,223
- - - 38,418 72,108
106,856 - - 4,261,638 5,240,489
- - - 64,474 943,463
- - - 75,815 163,735
- - - - 4,383,346
152,202 - - - 1,154,891
152,202 106,856 - 4,495,288 20,642,940
- - - 10,667 3,244,955
- - - 619,809 5,130,650
- - - 396,056 2,553,189
- - - 2,891,619 3,341,309
- - - - 237,178
- - - - 1,130,070
3,770,211 244,195 4,014,406
- - - - 195,000
- - - - 244,957
- - 244,195 7,688,362 20,091,714
152,202 106,856 (244,195) (3,193,074) 551,226
- - - - 25,377
293,169 - 6,419,986 7,565,256
- (2,280,000) - (1,715,349) (7,359,999)
- (2,280,000) 293,169 4,704,637 230,634
152,202 (2,173,144) 48,974 1,511,563 781,860
2,397,275 (140,918) (80,616) 3,985,975 14,735,051
$ 11,284 224,131 $ (31,642) $ 5,497,538 $ 15,516,911 $
Major Funds
31 City of Fort Bragg, California
Reconciliation of Fund Basis Statements to Government-wide Statement of Activities For the year ended June 30, 2024
Compensated Capital
Absences/ Asset GovernmentFund Based Debt Internal (Additions)/ Cost OPEB Unavailable wide Functions/Programs Totals Service Service Depreciation Retirements Allocation Obligation Pension plan Revenue Totals Governmental activities:
General government $ 20,097 3,244,955 $ (179,544) $ 177,128 $ - $ 256,973 $ 63,774 $ 212,263 $ - $ 3,795,646 $ Public safety - 5,130,650 - 108,908 - 406,304 - 335,613 - 5,981,475 Public works - 2,553,189 - 1,270,381 (265,683) 202,191 - 167,013 - 3,927,091 Community development (124,500) 3,341,309 - - - 264,603 - 218,566 (2,480,898) 1,219,080 Marketing and promotions - 237,178 - - - - - - - 237,178 Cost allocations - 1,130,070 - - - (1,130,070) - - - -
Capital outlay 4,014,406 - - - (4,014,406) - - - - -
Debt service/Interest 439,957 (195,000) - - - - - - - 244,957 Total governmental activities $ (299,403) 20,091,714 $ (179,544) $ 1,556,417 $ (4,280,089) $ 1 $ 63,774 $ 933,455 $ (2,480,898) $ 15,405,427 $ The accompanying notes are an integral part of these basic financial statements. 32 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, 2024
Net change in fund balances - total governmental funds $ 781,860 Capital asset purchases capitalized $ 4,280,089
Proceeds from sale of capital assets (25,377)
Depreciation expense (1,556,417) 2,698,295
2,480,898
Bonds payable 195,000
Landfill closure liability 124,500
Change in compensated absences (20,097) 104,403
Net OPEB obligation (63,774)
Net Pension obligation (933,455) (997,229)
178,350
Change in Net Position of governmental activities $ 5,441,577 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.
33 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, 2024
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Taxes and assessments 7,255,860 $ 7,255,860 $ 7,436,640 $ 180,780 $ Licenses and permits 94,293 94,293 85,223 (9,070)
Fines and forfeitures 50,100 50,100 33,690 (16,410)
Intergovernmental 742,362 824,262 871,995 47,733
Use of money and property 85,000 85,000 574,291 489,291 Charges for services 85,343 85,343 87,920 2,577
Reimbursements 3,290,622 3,290,622 4,383,346 1,092,724
Other revenues 20,200 20,200 1,002,689 982,489
Total revenues 11,705,680 11,623,780 14,475,794 2,770,114 EXPENDITURES:
Current:
General government:
City Council 185,315 217,203 198,857 18,346
Administrative services 1,037,505 1,127,160 1,061,174 65,986 Finance 635,769 597,769 558,258 39,511
Other - unclassified 1,397,574 1,428,280 1,415,558 12,722 Public safety:
Police Department 4,483,370 4,564,747 3,950,427 614,320 Fire Department 453,708 453,708 560,414 (106,706)
Public works:
Administration and engineering 934,011 1,070,406 796,156 274,250 Parks and facilities 40,000 40,000 51,945 (11,945)
Street maintenance 142,000 165,878 172,808 (6,930)
Storm drains 25,500 25,500 14,063 11,437
Corporation yard 380,482 400,482 434,327 (33,845)
Traffic and safety 41,500 42,578 33,804 8,774
Community development 445,897 452,794 430,664 22,130
Marketing and promotions 240,650 252,458 237,178 15,280 Cost allocations 656,999 656,999 1,130,070 (473,071)
Debt service:
Principal 195,000 195,000 195,000 -
Interest and fiscal charges 245,513 245,513 244,957 556 Total expenditures 11,936,475 11,540,793 11,486,101 450,374
REVENUES OVER (UNDER)
EXPENDITURES (230,795) 82,987 2,989,693 3,220,488
OTHER FINANCING SOURCES (USES):
Proceeds from sales of assets 1,000 1,000 25,377 24,377 Transfers in 664,150 664,150 852,101 187,951
Transfers out (664,150) (664,150) (664,150) -
Total other financing sources (uses) 1,000 1,000 213,328 212,328 Net change in fund balances (229,795) 83,987 3,203,021 3,432,816 FUND BALANCES (DEFICITS):
Beginning of year 5,975,337 5,975,337 5,975,337 -
End of year $ 5,745,542 6,059,324 $ 9,178,358 $ 3,432,816 $ General Fund
The accompanying notes are an integral part of these basic financial statements.
Budgeted Amounts
34 Variance w/Final Variance w/Final
Positive Positive
Original Final Actual (Negative) Original Final Actual (Negative) $ - - $ - $ - $ 1,111,100 $ 1,111,100 $ 1,108,102 $ (2,998) $ - - - - - - - -
- - - - - - - -
- - - - - - - -
244,398 244,398 304,698 60,300 10,000 10,000 - (10,000) - - - - - - - -
- - - - - - - -
- - - - - - - -
244,398 244,398 304,698 60,300 1,121,100 1,121,100 1,108,102 (12,998) - - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - 255,219 255,219 654,030 (398,811)
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - 19,026 (19,026) - - - -
- - - - - - - -
- - - - - - -
- - - - - - - -
- - - - - - - -
- - 19,026 (19,026) 255,219 255,219 654,030 (398,811)
244,398 244,398 285,672 41,274 865,881 865,881 454,072 (411,809) - - - - - - - -
- - - - - - - -
(226,398) (226,398) (173,896) 52,502 (2,526,604) (2,707,104) (2,526,604) 180,500 (226,398) (226,398) (173,896) 52,502 (2,526,604) (2,707,104) (2,526,604) 180,500 18,000 18,000 111,776 93,776 (1,660,723) (1,841,223) (2,072,532) (231,309) 118,696 118,696 118,696 - 2,479,302 2,479,302 2,479,302 - $ 136,696 136,696 $ 230,472 $ 93,776 $ 818,579 $ 638,079 $ 406,770 $ (231,309) $ (continued)
Budgeted Amounts
CDBG Program Income Special Revenue Fund Special Sales Tax Special Revenue Budgeted Amounts
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, 2024
Variance w/Final
Positive
Original Final Actual (Negative)
REVENUES:
Taxes and assessments - $ - $ - $ - $
Licenses and permits - - - -
Fines and forfeitures - - - -
Intergovernmental 106,856 106,856 106,856 -
Use of money and property - - - -
Charges for services - - - -
Reimbursements - - - -
Other revenues - - - -
Total revenues 106,856 106,856 106,856 -
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 106,856 106,856 - 106,856
Marketing and promotions - - - -
Cost allocations - - - -
Debt service:
Principal - - - -
Interest and fiscal charges - - - -
Total expenditures 106,856 106,856 - 106,856
REVENUES OVER (UNDER)
EXPENDITURES - - 106,856 106,856
OTHER FINANCING SOURCES (USES):
Proceeds from sales of assets - - - -
Transfers in - - - -
Transfers out - - (2,280,000) (2,280,000)
Total other financing sources (uses) - - (2,280,000) (2,280,000) Net change in fund balances - - (2,173,144) (2,173,144) FUND BALANCES:
Beginning of year 2,397,275 2,397,275 2,397,275 -
End of year $ 2,397,275 2,397,275 $ 224,131 $ (2,173,144) $ Permanent Local Housing Special Revenue
Budgeted Amounts
36 Variance w/Final
Positive
Original Final Actual (Negative)
$ - - $ - $ - $
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
(140,918) (140,918) (140,918) -
$ (140,918) (140,918) $ (140,918) $ - $
(concluded)
CDBG Super NOFA Special Revenue
Budgeted Amounts
37 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. 38 City of Fort Bragg, California
Statement of Net Position
Proprietary Funds
June 30, 2024
Governmental
Activities
Water Sewer CV Starr Center Internal
Fund Fund Fund Totals Service Funds
ASSETS
Current assets:
Cash and investments 3,566,705 $ 2,892,740 $ 2,642,072 $ 9,101,517 $ 932,603 $ Restricted cash and investments 108,064 - - 108,064
Receivables:
Accounts 327,594 439,612 69,712 836,918 -
Inventory and prepaids 104,750 12,314 1,499 118,563 -
Total current assets 3,344,666 4,107,113 2,713,283 10,165,062 932,603 Noncurrent assets:
Capital assets, net 14,028,565 24,644,030 17,933,775 56,606,370 2,28 0,277 Total noncurrent assets 24,644,030 14,028,565 17,933,775 56,606,370 2,280,277 Total Assets 27,988,696 18,135,678 20,647,058 66,771,432 3,212,880
DEFERRED OUTFLOWS OF RESOURCES
Pension plan - 414,562 53,247 467,809 -
Total assets and defered outflows of resources $ 28,403,258 18,135,678 $ 20,700,305 $ 67,239,241 $ 3,212,880 $
LIABILITIES
Current liabilities:
Accounts payable 1,273,388 $ 77,823 $ 497,140 $ 1,848,351 $ 184,797 $ Accrued payroll - 3,148 - 3,148 542
Unearned revenue - 6,466 7,378 13,844 -
Deposits payable 153,991 250 5,386 159,627 -
Compensated absences - current portion 4,048 4,659 2,196 10,903 - Due within one year - 95,000 - 95,000 -
Total current liabilities 187,346 1,431,427 512,100 2,130,873 185,339 Noncurrent liabilities:
Compensated absences 36,334 42,030 19,623 97,987 -
Due after one year 4,461,000 - 4,461,000 -
Net pension liability - 457,836 58,805 516,641 -
Total noncurrent liabilities 4,960,866 36,334 78,428 5,075,628 - Total liabilities 5,148,212 1,467,761 590,528 7,206,501 185,339
DEFERRED INFLOWS OF RESOURCES
Pension Plan - 413,841 53,154 466,995 -
Total deferred inflows of resources 413,841 - 53,154 466,995 -
NET POSITION
Net Position:
Net investment in capital assets 14,028,565 20,088,030 17,933,775 52,050,370 2,280,277 Restricted for debt service 108,064 - - 108,064 -
Unrestricted 2,531,288 2,753,175 2,122,848 7,407,311 747,264 Total net position 22,841,205 16,667,917 20,056,623 59,565,745 3,027,541 Total liabilities, deferred inflows and net position $ 28,403,258 18,135,678 $ 20,700,305 $ 67,239,241 $ 3,212,880 $ The accompanying notes are an integral part of these basic financial statements. 39 City of Fort Bragg, California
Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds
For the year ended June 30, 2024
Governmental
Activities
Water Sewer CV Starr Center Internal
Fund Fund Fund Totals Service Funds
OPERATING REVENUES:
Charges for service 2,971,409 $ 3,435,858 $ 677,012 $ 7,084,279 $ - $ Other operating revenue 85,096 190,782 42,091 317,969 361 Interdepartmental charges - - - - 1,569,968
Total operating revenues 3,626,640 3,056,505 719,103 7,402,248 1,570,329 OPERATING EXPENSES:
Personnel services 1,304,608 563,174 1,297,937 3,165,719 551,206 Administration 825,579 728,141 257,261 1,810,981
Repairs and maintenance 224,291 89,433 - 313,724 108,893 Materials and supplies 276,551 419,401 58,471 754,423 484,473 Utilities 192,471 351,532 354,859 898,862 -
Contractual services 95,547 427,623 2,227 525,397 63,004 Insurance 53,392 113,349 218,135 384,876 -
Other operating 5,289 38,034 10,049 53,372 -
Depreciation 353,968 816,971 675,919 1,846,858 207,185
Total operating expenses 3,547,658 3,331,696 2,874,858 9,754,212 1,414,761 OPERATING INCOME 78,982 (275,191) (2,155,755) (2,351,964) 155,568 NONOPERATING REVENUES (EXPENSES):
Property taxes - - 309,827 309,827 -
Sales taxes - - 1,169,582 1,169,582 -
Intergovernmental revenue - - 350 350
Interest revenue 235,409 164,443 95,246 495,098 26,364
Refunds and rebates - - (400) (400) -
Interest expense (25,809) (91,545) - (117,354) -
Total non-operating revenues, net 72,898 209,600 1,574,605 1,857,103 26,364
NET INCOME BEFORE
TRANSFERS 151,880 (65,591) (581,150) (494,861) 181,932
Transfers in - - - - 245,901
Transfers out (16,112) (187,951) - (204,063) (247,095)
Total transfers (187,951) (16,112) - (204,063) (1,194)
CHANGE IN NET POSITION (36,071) (81,703) (581,150) (698,924) 180,738 NET POSITION:
Beginning of year 16,749,620 22,877,276 20,637,773 60,264,669 2,846,803 End of year 16,667,917 $ 22,841,205 $ 20,056,623 $ 59,565,745 $ 3,027,541 $ The accompanying notes are an integral part of these basic financial statements. 40 City of Fort Bragg, California
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2024
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 3,04 $ 3,570,412 7,102 $ 719,103 $ 7,336,617 $ - $ Cash received from interfund services provided - - - - 1,570,329 Cash payments to suppliers for goods and services (542,154) (2,213,453) (783,215) (3,538,822) (920,615) Cash payments to employees for services (1,283,062) (1,335,799) (1,314,061) (3,932,922) (558,192) Net cash provided by operating activities 21,160 1,221,886 (1,378,173) (135,127) 91,522
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:
Transfers received - - - - 245,901
Transfers paid (16,112) (187,951) - (204,063) (247,095) Taxes received - - 1,479,409 1,479,409 -
Refunds paid - - (400) (400) -
Grants received - - 350 350
Net cash used by noncapital financing activities (187,951) (16,112) 1,479,359 1,275,296 (1,194)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition and construction of capital assets (2,179,510) (468,422) (422,477) (3,070,409) (310,126) Principal paid on long term debt (301,965) (93,000) - (394,965) - Interest paid on long term debt (36,203) (91,545) - (127,748) - Net cash (used) by capital and related financing activities (652,967) (2,517,678) (422,477) (3,593,122) (310,126) CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income received 235 164 ,409 95 ,443 495 ,246 26 ,098 ,364 Net cash provided by investing activities 164,443 235,409 95,246 495,098 26,364 Net increase (decrease) in cash and cash equivalents (655,315) (1,076,495) (226,045) (1,957,855) (193,434) CASH AND CASH EQUIVALENTS:
Beginning of year 4,751,264 3,548,055 2,868,117 11,167,436 1,126,037 End of year 3,674,769 $ 2,892,740 $ 2,642,072 $ 9,209,581 $ 932,603 $ Presentation in Statement of Financial Position:
Cash and investments 3,566,705 $ 2,892,740 $ 2,642,072 $ 9,101,517 $ 932,603 $ Restricted cash and investments 108,064 - - 108,064 -
Total Cash and investments 3,674,769 $ 2,892,740 $ 2,642,072 $ 9,209,581 $ 932,603 $ Reconciliation of income from operations to net
cash provided by operating activities:
Operating income (275,191) $ 78,982 $ (2,155,755) $ (2,351,964) $ 155,568 $ Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation 353,968 816,971 675,919 1,846,858 207,185
Pension - (737,405) 58,712 (678,693) -
(Increase) decrease in current assets:
Accounts receivable (15,374) (56,228) 108,137 36,535 -
Inventory and prepaids (19,951) (4,207) (503) (24,661) - Increase (decrease) in liabilities: .
Accounts payable 1,150,917 (41,733) (48,559) 1,060,625 (264,245) Accrued liabilities - (20,264) - (20,264) (6,986)
Deposits payable 5,971 - - 5,971 -
Compensated absences 21,546 (14,956) (16,124) (9,534) - Net cash provided by operating activities $ 21,160 1,221,886 $ (1,378,173) $ (135,127) $ 91,522 $ There were no noncash investing, capital, or financing activities affecting recognized assets and liabilities for the year ended June 30, 2024.
The accompanying notes are an integral part of these basic financial statements. 41 This page intentionally left blank.
42 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
43 City of Fort Bragg, California
Statement of Fiduciary Net Position
Fiduciary Activities
June 30, 2024
Former Fort Bragg
Redevelopment
Agency
ASSETS AND DEFERRED OUTFLOWS
Current assets:
Cash and investments $ 269,115
Other receivable 14,978
Total assets 284,093
Deferred outflows of resources
Deferred loss on debt refunding 59,608
Total deferred outflows of resources 59,608
Total assets and deferred outflows of resources $ 343,701
LIABILITIES, DEFERRED INFLOWS AND NET POSITION
Current liabilities:
Accounts payable and accrued liabilities $ -
Interest payable 28,283
Due within one year 175,000
Total current liabilities 203,283
Long-term liabilities:
Due after one year 2,484,502
Total long-term liabilities 2,484,502
Deferred inflows of resources
Unavailable revenue 278,263
Total liabilities and deferred inflows of resources 2,966,048 Net Position (Deficit) (2,622,347)
Total liabilities and net position $ 343,701
Successor Agency
The accompanying notes are an integral part of these basic financial statements. 44 City of Fort Bragg, California
Statement of Changes in Fiduciary Net Assets
Private Purpose Trust Funds
For the year ended June 30, 2024
Former Fort Bragg
Redevelopment
Agency
ADDITIONS:
Property taxes $ 452,782
Total operating revenues 452,782
DEDUCTIONS:
Community development 125,915
Interest and trustee fees 92,124
Total operating expenses 218,039
CHANGE IN FIDUCIARY NET ASSETS 234,743
NET ASSETS (DEFICIT):
Beginning of year (2,857,090)
End of year $ (2,622,347)
Successor Agency
The accompanying notes are an integral part of these basic financial statements. 45 This page intentionally left blank.
46 47
NOTES TO BASIC FINANCIAL STATEMENTS
City of Fort Bragg, California
Index to the Notes to the Basic Financial Statements
For the year ended June 30, 2024
48 Page
Note 1 ‐ Summary of Significant Accounting Policies ..................................................................................... 49 A. Description of Government‐Wide Financial Statements ....................................................................... 49 B. Reporting Entity ...................................................................................................................................... 49 C. Basis of Presentation .............................................................................................................................. 50 D. Measurement Focus ............................................................................................................................... 52 E. Budgetary Information ........................................................................................................................... 53 F. Unearned Revenue ................................................................................................................................. 54 G. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position/ Fund Balance .......................................................................................................................................... 55 H. Revenues, Expenditures/Expenses ........................................................................................................ 60 I. Use of Estimates ...................................................................................................................................... 62 J. New and Closed Funds ............................................................................................................................ 62 K. Reclassifications ...................................................................................................................................... 62 L. Other Post‐Employment Benefits (OPEB) ............................................................................................... 62 Note 2 – Cash and Investments ........................................................................................................................ 63 Note 3 – Accounts Receivable .......................................................................................................................... 66 Note 4 – Loans and Notes Receivable .............................................................................................................. 67 Note 5 – Capital Assets ..................................................................................................................................... 68 Note 6 – Accounts Payable and Accrued Liabilities ......................................................................................... 70 Note 7 – Long‐term Liabilities .......................................................................................................................... 70 Note 8 – Net Position/Fund Balances .............................................................................................................. 74 Note 9 – Interfund Transactions ...................................................................................................................... 75 Note 10 – Risk Management ............................................................................................................................ 76 Note 11 – Public Employee Retirement System .............................................................................................. 77 Note 12 – Other Post‐Employment Benefits ................................................................................................... 83 Note 13 – Successor Agency for Trust for Assets of Former Redevelopment Agency ................................... 87 Note 14 – Commitments and Contingencies ................................................................................................... 89 Note 15 – New Accounting Pronouncements .................................................................................................. 90 City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
49 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Fort Bragg (City) have been prepared in conformity with accounting principles (USGAAP) generally accepted in the United States of America as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant principles are described below.
A. Description of Government‐wide Financial Statements The government‐wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the non‐fiduciary activities of the primary government and its component units. All fiduciary activities are reported only in the fiduciary fund financial statements. Governmental activities, which normally are supported by taxes, intergovernmental revenues, and other non‐exchange transactions, are reported separately from business‐type activities, which rely to a significant extent on fees and charges to external customers for support. Likewise, the primary government is reported separately from certain legally separate component units for which the primary government is financially accountable.
B. Reporting Entity
The City of Fort Bragg was incorporated August 5, 1889, under the applicable laws and regulations of the State of California. The City operates under a Council‐City Manager form of government and provides a variety of services including public safety (police and fire); streets and highways; wastewater collection, treatment, and disposal; water treatment; planning and zoning; public improvement and redevelopment; and general administrative services. The accompanying financial statements present the City and its component units, entities for which the City is considered to be financially accountable.
Blended Component Units
Because of their relationship with the City and the nature of their operations, component units are, in substance, part of the City’s operations and, accordingly, the activities of these component units are combined, or blended with the activities of the City for purposes of reporting in the accompanying basic financial statements. The basis for blending the component units is that their governing bodies are substantially the same as the City’s Council.
Fort Bragg Municipal Improvement District No. 1 (District) includes all of the funds and operations for the City’s wastewater collection and treatment processes. The District is governed by a Board of Directors comprised of the members of the Fort Bragg City Council. The City of Fort Bragg exercises significant financial and management control over the District. The activities of the District are reported as a major enterprise fund within the City’s financial statements.
Complete financial statements of the District can be obtained directly from the City of Fort Bragg, 416 N.
Franklin St., Fort Bragg, CA 95437.
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
50 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Basis of Presentation
The accounts of the City are organized and operated on the basis of funds, each of which is defined as a separate fiscal and accounting entity with a self‐balancing set of accounts. These funds are established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions or limitations.
In accordance with Governmental Accounting Standards Board Statement No. 34 (GASB 34), “Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments,” the financial statements consist of the following:
● Government‐wide financial statements,
● Fund financial statements, and
● Notes to the financial statements
Government‐wide Financial Statements
While separate government‐wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds and internal service funds, while business‐type activities incorporate data from the government’s enterprise funds. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government‐wide financial statements.
The Statement of Net Position and the Statement of Activities report information on all of the non‐fiduciary activities of the primary government (the City) and its component units. As a general rule, the effect of interfund activity has been eliminated from the government‐wide financial statements. Exceptions to this general rule are payments in lieu of taxes where the amounts are reasonably equivalent in value to the interfund services provided and other charges between the City’s water and wastewater functions and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non‐exchange transactions.
The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the City’s governmental activities. Direct expenses are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational need of a particular program, and (c) fees, grants, and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
51 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Basis of Presentation, Continued
Fund Financial Statements
The fund financial statements provide information about the City’s funds, including its fiduciary fund and blended component units. Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as non‐major funds.
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government except those required to be accounted for in specialized funds.
The Community Development Block Grant (CDBG) Program Income Fund special revenue fund was established to account for program income generated by CDBG funded projects. The funds are used for activities that benefit low‐ and moderate‐income persons to ensure decent affordable housing and to create jobs through the expansion and retention of businesses.
The 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, 2024
52 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued C. Basis of Presentation, Continued
Additionally, the City reports the following fund types:
Internal Service Funds account for maintenance and repair of City facilities, information technology, and vehicle operations that provide services to other departments of the City on a cost reimbursement basis.
The Private‐Purpose Trust Fund is a fiduciary fund type used by the City to report trust arrangements under which principal and income benefit other governments. This fund reports the assets, liabilities, and activities of the Fort Bragg Redevelopment Successor Agency (Successor Agency). The Successor Agency operates under the auspices of a legislatively formed Oversight Board comprised of representatives of the local agencies that serve the redevelopment project area. The Oversight Board, in its fiduciary capacity, has authority over the operations and the timely dissolution of the former RDA. It is tasked with fulfilling the obligations of the former RDA, and is also responsible for revenue collection, maintaining necessary bond reserves, and disposing of excess property.
During the course of operations the City has activity between funds for various purposes. Any residual balances outstanding at fiscal year‐end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government‐wide financial statements. Balances between the funds included in governmental activities (i.e., the governmental and internal service funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between the funds included in business‐type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business‐type activities column.
Further, certain activity occurs during the fiscal year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government‐wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances between the funds included in business‐type activities are eliminated so that only the net amount is included as transfers in the business‐type activities column.
D. Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.
The government‐wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
53 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Measurement Focus and Basis of Accounting, continued The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long‐term debt and acquisitions under capital leases are reported as other financing sources.
Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of a fiscal year‐end). Expenditure‐driven grants are recognized as revenue when eligible expenditures have been incurred against a fully executed grant agreement. Such accrued revenue is considered available even if it is not received within 60 days of year‐end. This method provides improved reporting and control at the program level because it appropriately matches funding sources and uses. All other revenue items are considered to be measurable and available only when cash is received by the City.
Proprietary and private‐purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting. Proprietary funds distinguish operating revenues and expenses from non‐ operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Water and Wastewater enterprise funds and of the City’s internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include the cost of sales and services, administrative expenses, and depreciation/amortization on capital assets. All revenues and expenses not meeting this definition are reported as non‐operating revenues and expenses.
E. Budgetary Information
1) Budgetary basis of accounting
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for the general fund and enterprise funds. The capital projects funds are appropriated on a project‐length basis. Other special revenue funds do not have appropriated budgets since other means control the use of these resources (e.g., grant awards and endowment requirements) and sometimes span a period of more than one fiscal year.
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
54 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Budgetary Information, Continued
The City Council follows the following procedures in establishing the budgetary data reflected in the required supplementary information:
Before the end of each fiscal year, the City Manager and Finance Director prepare and submit to the City Council a proposed budget for the subsequent fiscal year. The budget includes proposed expenditures and the means for financing them.
The City Council reviews the proposed budget in public hearings which provides interested citizens opportunity to comment. The Council may add to, subtract from, or change appropriations, but may not change the form of the budget.
Prior to July 1, or soon after, the budget is legally adopted by the City Council through resolution.
The appropriated budget is prepared by fund, function, and department. The City’s department heads may make transfers of appropriations within a department with City Manager approval.
Transfers of appropriations between departments require the approval of the Council. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level.
Appropriations in all budgeted funds lapse at the end of the fiscal year unless they have related encumbrances. Encumbrances are commitments related to unperformed (executory) contracts for goods or services (i.e., purchase orders, contracts, and commitments). Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. Valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are brought forward and become part of the subsequent year’s budget pursuant to City policy.
F. Unearned Revenue
Under both the accrual and modified accrual basis of accounting, revenue may be recognized only when earned. Therefore, the government‐wide statement of net position as well as governmental and enterprise funds defer revenue recognition in connection with resources that have been received as of fiscal year‐end, but not yet earned. Assets recognized in connection with a transaction before the earnings process is complete are offset by a corresponding liability for unearned revenue.
Under the modified accrual basis of accounting, it is not enough that revenue had been earned if it is to be recognized in the current period. Revenue must also be susceptible to accrual (i.e., measurable and available to finance expenditures of the current period). Governmental funds report unearned revenues, in connection with receivables for revenue not considered available to liquidate, as deferred inflows of resources.
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
55 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance 1) Cash and cash equivalents
The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short‐ term investments with original maturities of three months or less from the date of acquisition. 2) Investments
Investments for the City and its component units are reported at fair value (generally based on quoted market prices).
3) Inventories and prepaid items
Inventories for both governmental and proprietary funds consist principally of materials and supplies held for consumption and are valued at cost, approximating fair value, using the first‐in, first‐out (FIFO) method. The cost of such inventories is recorded as expenditures/expenses when consumed rather than when purchased. Inventories recorded in the governmental funds do not reflect current appropriable resources and thus, an equivalent portion of fund balance is shown as non‐spendable.
Certain payments to vendors represent costs applicable to future accounting periods and would be recorded as prepaid items in both the government‐wide and fund financial statements. The City had $960 in prepaid expenses in governmental activities as of June 30, 2024. 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, 2024
56 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance, Continued
The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or increase its estimated useful life. Donated capital assets, donated works of art and similar items as well as capital assets received in a service concession arrangement are reported at acquisition value. During the current fiscal period, infrastructure projects that were incomplete are reported as “construction in progress.”
Interest is capitalized on the construction of major assets acquired with debt. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project with interest earned on invested proceeds over the same period. For the fiscal year ended June 30, 2024, 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, 2024
57 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance, Continued
6) Deferred outflows/inflows of resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items reported as a deferred outflow of resources. The first item is a deferred charge on the City’s port‐ employment benefits reported in the government‐wide statement of net position. The second item is a deferred charge on the City’s pension plan reported 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 two 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 on the City’s pension plan 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, 2024
58 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance, Continued
8) Net Position/Fund Balance
GASB Statement No. 63 adds the concept of Net Position, which is measured on the full accrual basis, to the concept of Fund Balance, which is measured on the modified accrual basis. Net Position represents the difference between assets and liabilities and are divided into three captions under GASB Statement No. 34. These captions apply only to Net Position as determined at the government‐ wide level, and are described below:
Net Investment in Capital Assets describes the portion of Net Position which is represented by the current net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these assets.
Restricted describes the portion of Net Position which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include debt service requirements and funds restricted for various purposes, such as low and moderate income housing, community development, streets and roads, and public safety.
Unrestricted describes the portion of Net Position which is not restricted as to use.
GASB Statement No. 54 establishes fund balance classifications for the Fund Financial Statements that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds.
Non‐spendable Fund Balance – This amount is comprised of net position that cannot be spent because of their form or must remain intact pursuant to legal or contractual requirements.
Restricted Fund Balance – This balance is comprised of net position that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation.
Committed Fund Balance – This balance includes amounts that can be used only for the specific purposes determined by a formal action of the City’s highest level of decision‐making authority. The City Council (Council) is the highest level of decision‐making authority for the City that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation.
Assigned Fund Balance – This balance is intended to be used by the City for specific purposes but do not meet the criteria to be classified as committed. The Council has City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
59 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance, Continued
by resolution authorized the Finance Director to assign fund balance. The Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.
Unassigned Fund Balance – This balance represents residual net resources or total fund balance in the General Fund in excess of non‐spendable, restricted, committed and assigned fund balance (surplus). In other governmental funds the balance represents the excess of non‐spendable, restricted, and committed fund balance over total fund balance (deficit).
The City applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available.
Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. 9) Restricted Assets
Certain cash and investments in the Water Fund are held by the City’s fiscal agents and classified as restricted assets on the statement of net position because their use is limited by applicable bond or other covenants.
10) Lease Obligations
Lease Liabilities represent the City’s obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement date based on the present value of future lease payments expected to be made during the lease term. The present value of lease payments is discounted based on a borrowing rate determined by the City.
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
60 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance, Continued
11) Encumbrances
Encumbrances resulting from issuing purchase orders as a result of normal purchasing activities approved by appropriate authorities as of June 30, 2024, are summarized below.
Fund Amount
General Fund $ 475,619
Asset Forfeiture 109,760
Main Street Fire Station 135,600
Fire Equipment 235,567
Facilities 13,294
IT 228,437
Fleet & Equipment Services 311,543
Other State Grants 358,490
Noyo Harbor Blue Economy 63,569
MCOG 49,510
Water Enterprise 107,291
Street Resurfacing Capital Project 110,697
Wastewater Enterprise 71,765
CV Starr 176,282
$ 2,447,424
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.
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
61 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued H. Revenues and expenditures/expenses, Continued
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.
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, 2024
62 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued H. Revenues and expenditures/expenses, Continued
operating revenue the portion intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues not meeting this definition are reported as non‐operating revenues and expenses. Although Internal Service Funds are proprietary in nature, they are funded entirely by internal customers and reported as governmental activities.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
I. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from those estimates.
J. New and Closed Funds
During the course of each fiscal year funds may be closed and new funds opened. In FY 2023/24 no funds were opened or closed.
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, 2024
63 2. CASH AND INVESTMENTS
At June 30, 2024, the City’s pooled cash and investments, classified by maturity, consisted of the following stated at fair value:
Fair
<1 1 to 3 3 to 5 Deposits Market Value
Cash equivalents and investments pooled
Pooled cash, at fair value
Cash in bank ‐ $ ‐ $ ‐ $ 2,503,254 $ 2,503,254 Petty cash ‐ ‐ ‐ 1,290 1,290 Total pooled items ‐ ‐ ‐ 2,504,544 2,504,544 Pooled investments, at fair value
Interest obligations
Par Rate
$ 0.57% ‐ 1.00% Federal Agency Securities ‐ 1,000,000 ‐ 931,405 ‐ 931,405 $ 0.7% ‐ 5.15% Certificates of Deposits 4,425,831 13,876,000 7,037,049 2,178,374 ‐ 13,641,254 Money Market Funds ‐ ‐ ‐ (220,348) (220,348) State of California Local Agency Investment Fund ‐ ‐ ‐ 4,036,035 4,036,035 PARS Section 115 Pension Trust Fund ‐ Mutual Fund 1,651,438 ‐ ‐ ‐ 1,651,438 Total pooled investments ‐ interest obligations 6,077,269 7,037,049 3,109,779 3,815,687 20,039,784 Total cash equivalents and investments pooled 6,077,269 $ 7,037,049 $ 3,109,779 $ 6,320,231 $ 22,544,328 $ Amounts reported in:
Governmental activities (unrestricted) 11,277,745 $
Governmental activities (restricted) 1,787,887
Business‐type activities (unrestricted) 9,101,517
Business‐type activities (restricted) 108,064
Fiduciary activities 269,115
Total 22,544,328 $
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, 2024, 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, 2024
64 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, 2024, 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, 2024:
Investment Type Fair Value Concentration
Certificate of Deposits 13,641,254 $ 54.14%
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, 2024
65 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, 2024, the carrying amount of the City’s cash deposits (including fiduciary funds) was $2,283,030 of which $250,000 was covered by federal depository insurance and $2,033,030 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, 2024, 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, 2024
66 2. CASH AND INVESTMENTS, Continued
Investments by Fair Value Level June 30, 2024 Level 1 Level 2 Level 3 Federal Agency Securities 931,405 $ 931,405 $ ‐ $ ‐ $ Certificates of Deposits 13,641,254 13,641,254 ‐ ‐ Money market (220,348) ‐ (220,348) ‐ Total fair value 14,352,311 14,572,659 (220,348) ‐ Investments Exempt from Fair Value Hierarchy
Local Agency Investment Fund (LAIF) 4,036,035
PARS Section 115 Pension Trust Fund ‐ Mutual Funds 1,651,438 $ 20,039,784
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, 2024 was $21,974,159,650 of which the City had a balance of $4,036,035. LAIF is part of the California Pooled Money Investment Account (PMIA), which at June 30, 2024 has a portfolio with market valuation including accrued interest of $179,046,993,600. 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, 2024:
Receivables
Governmental Activities
Taxes 1,852
Interest 795
Intergovernmental 2,152,655
Other 1,715,109
$ 3,870,411
Business‐type Activities
Accounts reeceivable 836,918 $
$ 836,918
These amounts resulted in the following concentrations in receivables:
Other Governments 44% Individuals/Business 56%
Amounts do not indicate a significant concentration (greater than 25%) with any single individual, business or agency.
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
67 4. LOANS AND NOTES RECEIVABLE
The City periodically receives Community Development Block Grant (CDBG) funding through the State Housing and Community Development Department to provide housing and economic development loans to individuals and businesses. Repayment terms and interest rates vary depending on the borrower’s funding needs and ability to repay the loan. Interest is accrued on the loans that bear interest.
Loans and notes receivable for the year ended June 30, 2024, consisted of the following:
Beginning Ending
June 30, 2023 Additions Deletions Adjustments June 30, 2024 CDBG Revolving Loans 1,153,572 $ 553,000 $ (276,549) $ (8,297) $ 1,421,726 $ Mendocino Coast Hospitality Center Loan ‐ 904,293 ‐ ‐ 904,293 Rural Community Housing Development Corporation Loans 6,750 570,375 ‐ ‐ 577,125 Employee Loans 2,311 ‐ ‐ ‐ 2,311 PLHA Loan ‐ Permanent Local Housing Allocation 2,280,000 ‐ ‐ ‐ 2,280,000 Total loans/notes receivable 2,513,350 $ 2,842,061 $ (276,549) $ 5,185,455 $ The following are descriptions of the loans and notes receivable outstanding as of June 30, 2024:
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.
Permanent Local Housing Allocation Loan – This loan is a Promissory Note related to a Permanent Local Housing Allocation (PLHA) Loan issued by City of Fort Bragg to Fort Bragg South Street LP, a California limited partnership. The loan accrues interest at an annual rate of 3%, with a default rate of 6%, and matures 55 years from the issuance of a Certificate of Occupancy for the project.
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
68 5. CAPITAL ASSETS
Governmental capital asset activity for the year ended June 30, 2024, was as follows:
Balance Transfers/ Balance
June 30, 2023 Additions Deletions Adjustments June 30, 2024 Governmental activities:
Nondepreciable assets:
Land 12,952,262 $ ‐ $ ‐ $ ‐ $ 12,952,262 $ Construction in progress 1,639,441 3,883,564 (832,765) (18,571) 4,671,669 Total nondepreciable assets 3,883,564 14,591,703 (832,765) (18,571) 17,623,931 Depreciable assets:
Buildings 4,675,798 422,863 ‐ ‐ 5,098,661 Machinery, equipment and vehicles 3,240,782 886,554 (136,043) (24,117) 3,967,176 Infrastructure 38,238,681 ‐ ‐ ‐ 38,238,681 Total depreciable assets 1,309,417 46,155,261 (136,043) (24,117) 47,304,518 Total 5,192,981 59,078,998 (968,808) (42,688) 64,928,449 Accumulated depreciation:
Buildings (3,614,779) (113,139) ‐ ‐ (3,727,918) Machinery, equipment and vehicles (1,704,004) (211,870) 98,604 ‐ (1,817,270) Infrastructure (13,272,075) (1,231,408) ‐ ‐ (14,503,483) Total accumulated depreciation (1,556,417) (18,590,858) 98,604 ‐ (20,048,671) Net depreciable assets (247,000) 27,564,403 (37,439) (24,117) 27,255,847 Total net capital assets $ 3,636,564 42,156,106 $ (870,204) $ (42,688) $ 44,879,778 $ Depreciation expense for capital assets was charged to functions as follows:
General government 177,128 $
Public safety 108,908
Public works 1,270,381
$ 1,556,417
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
69 5. CAPITAL ASSETS, Continued
Business‐type capital asset activity for the year ended June 30, 2024, was as follows:
Balance Balance
June 30, 2023 Additions Deletions June 30, 2024
Business‐type activities:
Nondepreciable assets:
Land 3,210,698 $ ‐ $ ‐ $ 3,210,698 $ Construction in progress 4,228,017 2,546,250 (196,928) 6,577,339 Total nondepreciable assets 2,546,250 7,438,715 (196,928) 9,788,037 Depreciable assets:
Buildings 29,467,204 267,492 ‐ 29,734,696 Machinery, equipment and vehicles 6,680,466 189,644 (254,625) 6,615,485 Infrastructure 39,475,891 266,665 ‐ 39,742,556 Land improvements 542,303 ‐ ‐ 542,303 Total depreciable assets 723,801 76,165,864 (254,625) 76,635,040 Total 3,270,051 83,604,579 (451,553) 86,423,077 Accumulated depreciation:
Buildings (10,301,599) (716,232) ‐ (11,017,831) Machinery, equipment and vehicles (4,888,648) (200,063) 251,910 (4,836,801) Infrastructure (12,489,210) (930,562) ‐ (13,419,772) Land improvements (542,303) ‐ (542,303) Total accumulated depreciation (1,846,857) (28,221,760) 251,910 (29,816,707) Net depreciable assets (1,123,056) 47,944,104 (2,715) 46,818,333 Total net capital assets $ 1,423,194 55,382,819 $ (199,643) $ 56,606,370 $ Depreciation expense for capital assets was charged to functions as follows:
Water 353,968 $
Sewer 816,971
CV Starr Center 675,918
$ 1,846,857
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
70 6. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Accounts payable and accrued payroll and related liabilities consisted of the following at June 30, 2024:
Governmental Business‐type
Activities Activities Total
Accounts payable 760,216 $ 1,848,008 $ 2,608,224 $ Accrued payroll and related liabilities 42,640 3,491 46,131 Total 802,856 $ 1,851,499 $ 2,654,355 $ These amounts resulted in the following concentrations in payables:
Vendors 98.4%
Employees 1.6%
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, 2024:
Balance Balance Due Within
July 1, 2023 Additions Retirements June 30, 2024 One Year Governmental Activities:
Compensated absences 564,593 $ 77,284 $ (57,187) $ 584,690 $ 58,469 $ Landfill post‐closure 124,500 ‐ (124,500) ‐ ‐ 2021 Lease revenue bonds 8,015,000 ‐ (195,000) 7,820,000 190,000 2021 Lease revenue bonds discount (39,374) ‐ 1,875 (37,499) ‐ Total governmental activities $ 77,284 8,664,719 $ (374,812) $ 8,367,191 $ 248,469 $ Business‐type activities
Bonds payable:
2014 Water Revenue Refunding Bond 332,000 $ ‐ (332,000) ‐ ‐ 2018 WW Plant Certificates of Participation 4,649,000 ‐ (93,000) 4,556,000 95,000 Total business‐type activity debt ‐ 4,981,000 (425,000) 4,556,000 95,000 Compensated absences 118,424 8,890 (18,424) 108,890 10,903 Total business‐type activities $ 8,890 5,099,424 $ (443,424) $ 4,664,890 $ 105,903 $ City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
71 7. LONG‐TERM LIABILITIES, Continued
Governmental Activities
2021 Lease Revenue Bonds
On October 28, 2021 the City issued $11,440,000 in Lease Revenue Bonds. Of the proceeds, $7,540,414 were used to pay down a portion of the outstanding UAL projected by CalPERS. On August 5, 2023 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, 2024. The bonds mature in 2044 and principal is payable on May 1 each year, commencing May 1, 2024. 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, 2024, 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, 2024, 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, 2024. 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, 2024 was $0. $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, 2024
72 7. LONG‐TERM LIABILITIES, Continued
The City defeased the 2004 California Statewide Communities Development Authority Bonds by placing the proceeds of the 2014 Water Revenue Refunding Bonds in an irrevocable trust to provide for all future debt service payments on the 2004 California Statewide Communities Development Authority Bonds. Accordingly, the trust account assets and the liability of the defeased 2004 California Statewide Communities Development Authority Bonds are not included in the City’s financial statements. 2018 Wastewater Revenue Refunding Bonds
In 2018, the City issued $5,000,000 in Certificates of Participation as partial funding to acquire and construct the District’s Wastewater Treatment Facility. The Certificates of Participation are secured by an Installment Sale agreement between the City and City of Fort Bragg Joint Powers Financing Authority (JPFA) with the JPFA acting as seller and the City as purchaser. The obligation is secured and payable from net revenues of the Wastewater Enterprise. The outstanding principal balance as of June 30, 2024 was $4,556,000.
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, 2024 was $584,690 with $58,469 expected to be paid within a year; The business‐type activities compensated absences balance at June 30, 2024 was $108,890 with $10,903 expected to be paid within a year.
Future debt service for Governmental and Business‐Type Activities at June 30, 2024, is as follows:
Year Ending
June 30,
Principal Interest Principal Interest
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 340,000 224,381 103,000 82,210 2030‐2034 1,805,000 385,107 545,000 379,050 2035‐2039 2,125,000 667,265 601,000 321,850 2040‐2044 2,520,000 271,775 664,000 258,600 2045‐2049 ‐ ‐ 732,000 188,840 2050‐2054 ‐ ‐ 809,000 111,890 2055‐2059 ‐ ‐ 710,000 28,660 Total 7,820,000 $ 2, $ 4,556,000 500,751 $ 1,719,940 $ Due within one year 190,000 $ 243,348 $ 95,000 $ 90,130 $ Due after one year 7,630,000 2, 4,461,000 257,403 1,629,810 Total 7,820,000 $ 2, $ 4,556,000 500,751 $ 1,719,940 $ 2018 WW Plant Certificates
Of Participation
Governmental Activities
2021 Lease Revenue Bonds
Business‐Type Activities
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
73 8. NET POSITION/ FUND BALANCES
Net position (deficit)
Governmental Business‐type
Activities Activities Total
Net investment in capital assets 44,879,778 $ 52,050,370 $ 96,930,148 $ Restricted 5,839,731 108,064 5,947,795 Unrestricted (deficit) (424,308) 7,407,311 6,983,003 Total 50,295,201 $ 59,565,745 $ 109,860,946 $ 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, 2024:
Nonspendable:
Prepaid 6,797 $
Loans/ Notes Receivable 2,311
Total Nonspendable $ 9,108
Restricted:
Governmental Funds:
Restricted cash and investments 1,787,88 $ 7
Special Sales Tax 406,770
CDBG Super NOFA 11,284
Asset Forfeiture 481,482
Federal & State Grant Funds 3,152,30 8
Total Restricted $ 5,839,731
Committed:
Governmental Funds:
Operating reserve 1,989,41 $ 9
Recession reserve 489,92 9
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. Loans/nots receivable – represents non‐spendable amounts classified as loans/notes receivable.
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
74 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. CDBG Super NOFA – represents amounts restricted by Federal guidelines to support housing rehabilitation projects.
Asset Forfeiture – represents amounts restricted by State and Federal guidelines to support law enforcement.
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 $1,989,419 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, 2024
Major Funds:
Street Resurfacing Capital Projects Fund (31,642) $
Non-Major Funds:
Special Revenue Funds
Parking In-lieu Fees (5,137)
Gas Tax (31,525)
Traffic and Safety (682)
Developer Deposit Accounts (6,325)
Total (75,311) $
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, 2024
75 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, 2024:
Due from Due to
Other Funds Other Funds
Governmental Funds
Major Funds:
General Fund 667,821 $ ‐ $
CDBG Super NOFA Special Revenue ‐ 23,212 Street Resurfacing Capital Projects ‐ 26,132 Total Major Funds 667,821 49,344
Nonmajor Funds:
Special Revenue Funds
Parking In‐lieu Fees ‐ 5,137 Gas tax ‐ 91,274
Traffic & Safety ‐ 1,282
MCOG Overall Work Plan ‐ 35,592 Noyo Harbor Blue Economy 72,444
HCD HOME Grant ‐ 9,116
Other State Grants ‐ 120,989 CDBG Grant COVID ‐ 249,624
Capital Project Funds:
Coastal Trail ‐ 33,019
Total Nonmajor Funds ‐ 618,477 Total Governmental Funds 667,821 667,821 Total $ 667,821 667,821 $
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
76 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, 2024:
Transfers In Transfers Out
Governmental Funds
Major Funds:
General Fund 852,101 $ 664,150 $
CDBG Program Income Special Revenue Fund ‐ 173,896 Speical Sales Tax Special Revenue Fund ‐ 2,526,604 Permanent Local Housing Special Revenue ‐ 2,280,000 Street Resurfacing Capital Projects 293,169 ‐ Total Major Funds 1,145,270 5,644,650
Non‐major Funds:
Special Revenue Funds
Parking In‐lieu Fees 61,570 ‐
Asset Forfeiture ‐ 55,234
RMRA ‐ 696,907
MCOG Overall Work Plan ‐ 61,570 Housing Successor Agency 2,280,000
Other State Grants ‐ 434,052 CDBG Grant 190,009 193,468
CDBG Grant Covid ‐ 274,118
Capital Projects Fund
Coastal Trail 3,888,407 ‐
Total Non‐major Funds 6,419,986 1,715,349
Internal Service Funds
Building Maintenance ‐ 247,095 Fleet Services 245,901 ‐
Total Internal Service Funds 245,901 247,095 Total Governmental Funds 7,811,157 7,607,094 Proprietary Funds
Major Enterprise Funds
Water ‐ 16,112
Sewer ‐ 187,951
Total Proprietary Funds ‐ 204,063 Total Transfers $ 7,811,157 7,811,157 $
10. RISK MANAGEMENT
The City of Fort Bragg is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the Member entity obtains insurance coverage.
The City of Fort Bragg is a member of the California Intergovernmental Risk Authority (CIRA), a joint powers authority, which provides joint protection programs for public entities covering automobile, general liability, errors and omission losses, workers’ compensation, and property claims.
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
77 10. RISK MANAGEMENT, Continued
Under the General Liability program, the City of Fort Bragg has a $5,000 deductible, with CIRA responsible for losses above that amount up to $1 million. CIRA has additional coverage of $39 million in excess of its $1 million retention limit through affiliated risk management authorities. CIRA also provides $600 million aggregate property coverage to its members with such coverage provided by purchased insurance. Liabilities of the member entity are reported when it is probable that a loss has occurred, and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation, changes in legal doctrines, and damage awards.
Accordingly, claims are reevaluated periodically to consider the effects of economic and social factors. The estimate of the claims liability also includes amounts for incremental claim adjustment expenses related to specific claims and other claim adjustment expenses regardless of whether allocated to specific claims.
Estimated recoveries, for example, from salvage or subrogation, are another component of the claims liability estimate.
CIRA covers workers’ compensation claims for participating members up to its self‐insurance limit of $500,000. Safety National and Gray Insurance Company provide excess coverage to statutory limits. Financial Statements of CIRA may be obtained from its administrative office located at 2330 E. Bidwell Street, Suite 150, Folsom, CA 95630; www.cira‐jpa.org or by calling (916) 927‐7727.
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.
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
78 11. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
The Plans' provisions and benefits in effect at June 30, 2024, 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%
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, 2024, the contributions recognized as part of pension expense for each Plan were as follows:
Miscellaneous Plans Safety Plans
Contributions ‐ employer 339,772 $ $ 245,110 City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
79 11. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2024, 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 3,184,191 $
Safety Plans 2,438,768
Total Net Pension Liability 5,622,959 $
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, 2023, 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, 2022 rolled forward to June 30, 2023 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, 2024 and 2023 was as follows:
Miscellaneous Safety Total
Proportion ‐ June 30, 2023 0.06550% 0.03491% 0.04730%
Proportion ‐ June 30, 2024 0.06368% 0.03263% 0.04507%
Change ‐ Increase/(Decrease) ‐0.00182% ‐0.00228% ‐0.00223% City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
80 11. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
For the year ended June 30, 2024, the City recognized pension expense of $839,643. At June 30, 2024, 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 192,244 $ ‐ $ 142,330 $ ‐ $ 334,574 $ ‐ $ Differences between expected and actual
experiences ‐ 137,432 163,722 ‐ 301,154 ‐ Differences between projected and actual
investment earnings 515,549 ‐ 333,745 ‐ 849,294 ‐ Differences between the employer's
contributions and proportionate share of the 400,104 1,527,841 1,482,971 343,888 3,010,812 743,992 Change in employer's proportion 2,288,336 6,505 4,269 2,050,301 10,774 4,338,637 Pension contributions subsequent to
measurement date ‐ 339,772 245,110 ‐ 584,882 ‐ Total 2,719,343 $ 2,688,440 $ 2,372,147 $ 2,394,189 $ 5,091,490 $ 5,082,629 $ Miscellaneous Plan Safety Plan Total
$584,882 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, 2025. 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
2025 (332,836) $ (232,882) $ (565,718) $ 2026 (259,938) (186,150) (446,088) 2027 269,114 142,564 411,678
2028 14,793 9,315 24,108 2029 ‐ ‐ ‐
Thereafter ‐ ‐ ‐ $ (267,153) (308,867) $ (576,020) $
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
81 11. PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, Continued
Actuarial Assumptions ‐The total pension liabilities in the June 30, 2024 actuarial valuations were determined using the following actuarial assumptions:
Miscellaneous Safety ‐ Police
PEPRA ‐
Miscellaneous
PEPRA Safety ‐
Police Fire Safety
Valuation Date 30‐Jun‐22 30‐Jun‐22 30‐Jun‐22 30‐Jun‐22 30‐Jun‐22 Measurement 30‐Jun‐23 30‐Jun‐23 30‐Jun‐23 30‐Jun‐23 30‐Jun‐23 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, 2024 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, 2024
82 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 6,575,3 3,184,191 21 392,999 Employer's Net Pension Liability/(Asset) ‐ Safety 5,250,161 2,438,768 140,254 Employer's Net Pension Liability/(Asset) ‐ Total 11,825,482 $ 5,622,959 $ 533,253 $ 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, 2024
83 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, 2024, 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, 2024
84 12. OTHER POST EMPLOYMENT BENEFITS (OPEB), Continued Employees Covered by benefit terms
At June 30, 2024, the following employees were covered by the benefit terms:
Active employees 10
Inactive employees or beneficiaries currently receiving benefits 39 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, 2024, 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, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023 that was rolled forward to determine the June 30, 2024 total OPEB liability, based on the following actuarial methods and assumptions:
Actuarial Valuation Date June 30, 2023
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, 2023
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 ‐ 8.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076 and later years
Medicare ‐ 7.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076 and later years
Municipal Bond Rate N/A
Healthcare Participation at
Retirement
Tier 1‐3: 100% participate at retirement
Tier 4: No active participants remaining
Actuarial Assumptions:
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
85 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 6/30/2023* 5,683,156 $ 2,969,068 $ 2,714,088 $ Changes for the year
Service Cost 43,707 ‐ 43,707 Interest 343,631 ‐ 343,631 Changes of benefit terms ‐ ‐ ‐ Actual vs. expected experience 496,317 ‐ 496,317 Assumption changes 225,039 ‐ 225,039 Contributions ‐ employer ‐ 462,544 (462,544) Contributions ‐ employee ‐ ‐ ‐ Net investment income ‐ 190,672 (190,672) Benefit payments (457,544) (457,544) ‐ Administrative expenses ‐ (863) 863 Net Changes 651,150 194,809 456,341 Balance at 6/30/2024** 6,334,306 $ 3,163,877 $ 3,170,429 $ *Mea s urement da te 6/30/2022
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
86 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 2024 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, 2024:
1% Decrease Current Rate 1% Increase
Change in Discount Rate 5.25% 6.25% 7.25%
Net OPEB Liability 3,832,456 $ 3,170,429 $ 2,606,749 $ 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, 2024 (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 2,586,860 $ 3,170,429 $ 3,854,804 $ 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, 2024)
City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
87 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, 2024, the City recognized OPEB expense of $139,771. As of fiscal year ended June 30, 2024, 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 259,976 $ ‐ $
Changes in assumptions 117,878 ‐
Net difference between projected and actual
earnings on plan invesments 193,665 ‐
Employer contributions made subsequent to the
measurement date 489,293 ‐
Total $ ‐ 1,060,812 $
The $489,293 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2024 measurement date will be recognized as a reduction of the net OPEB liability during the fiscal year ending June 30, 2025. 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
2025 382,358 $
2026 56,531
2027 133,653
2028 (1,023)
2029 ‐
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, 2024
88 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, 2024:
Balance Balance Due Within
June 30, 2023 Additions Retirements June 30, 2024 One Year Trust Activities:
2015 Refunding Tax Allocation Bonds 2,845,000 $ ‐ $ (165,000) $ 2,680,000 $ 175,000 $ 2015 Refunding Tax Allocation Bonds Discount (22,280) ‐ 1,782 (20,498) Total trust fund debt $ ‐ 2,822,720 $ (163,218) $ 2,659,502 $ 175,000 $ Deferred outflows:
2015 Refunding Tax Allocation Bonds Deferred
Loss 64,790 (5,182) 59,608 5,182 City of Fort Bragg, California
Notes to the Basic Financial Statements
For the year ended June 30, 2024
89 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, 2024 was $3,015,000.
Year Ending
June 30,
Principal Interest Principal
2025 175,000 79,800 (1,620) 2026 175,000 75,425 (1,620) 2027 180,000 70,100 (1,620) 2028 190,000 64,550 (1,620) 2029 190,000 58,850 (1,620) 2030‐2034 1,050,000 202,263 (8,100) 2035‐2039 720,000 35,750 (4,298) 2040‐2044 ‐ ‐ ‐ Total 2,680,000 $ 586,738 $ (20,498) $ Due within one year 175,000 $ 79,800 $ (1,620) $ Due after one year 2,505,000 506,938 (18,878) Total 2,680,000 $ 586,738 $ (20,498) $ Fiduciary Activities
Bonds
2015 Refunding
Discount
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 2023/23 no claims were disallowed.
Commitments
The City’s unexpended contractual commitments as of June 30, 2024 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, 2024
90 15. NEW ACCOUNTING PRONOUNCEMENTS
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 ends4. 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 implementation of this statement did not have an effect on the financial statements.
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 implementation of this statement did not have an effect on the financial statements.
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.
The GASB has issued Statement No. 102, “Certain Risk Disclosures.” The requirements of this Statement will improve financial reporting by providing users of financial statements with essential information that currently is not often provided. The disclosures will provide users with timely information regarding certain concentrations or constraints and related events that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a result, users will have better information with which to understand and anticipate certain risks to a government’s financial condition. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2025.
The GASB has issued Statement No. 103, “Financial Reporting Model Improvements.” The objective of this Statement is to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement also addresses certain application issues. The requirements of this Statement will take effect for financial statements starting with the fiscal year that ends June 30, 2026.
REQUIRED SUPPLEMENTARY INFORMATION
91 City of Fort Bragg, California
for the Measurement Periods Ended June 30,
2024 2023 2021 2020 2019 2018 2017
Total OPEB Liability
Service Cost $ 46,774 43,707 $ 74,649 $ 81,253 $ 104,512 $ 111,530 $ 119,019 $ Interest on the total OPEB liability 347,518 343,631 381,864 383,562 378,816 366,137 353,775 Experience (Gains)/Losses - - - - (287,306) - -
Actual vs. expected experience - 496,317 (63,893) - - - - Changes of assumptions - 225,039 (26,853) (96,029) 218,506 - - Benefit payments (449,289) (457,544) (420,407) (354,262) (287,648) (277,993) (286,331) Net change in total OPEB liability 651,150 (54,997) (54,640) 14,524 126,880 199,674 186,463 Total OPEB liability ‐ beginning 5,738,153 5,683,156 5,792,793 5,778,269 5,651,389 5,451,715 5,265,252 Total OPEB liability ‐ ending (a) $ 5,683,156 6,334,306 $ 5,738,153 $ 5,792,793 $ 5,778,269 $ 5,651,389 $ 5,451,715 $ Plan fiduciary net position
Contributions ‐ employer $ 454,289 462,544 $ 420,407 $ 359,262 $ 292,648 $ 492,993 $ 534,256 $ Contributions ‐ employee - - - - - - -
Actual investment income (459,120) 190,672 738,656 91,502 150,805 164,052 172,839 Administrative expense (869) (863) (1,017) (1,266) (522) (3,826) (883) Benefit payments (449,289) (457,544) (420,407) (354,262) (287,648) (277,993) (286,331) Net change in plan fiduciary net position (454,989) 194,809 737,639 95,236 155,283 375,226 419,881 Plan fiduciary net position ‐ beginning 3,424,057 2,969,068 2,686,418 2,591,182 2,435,899 2,060,673 1,640,792 Plan fiduciary net position ‐ ending (b) $ 2,969,068 3,163,877 $ 3,424,057 $ 2,686,418 $ 2,591,182 $ 2,435,899 $ 2,060,673 $ Net OPEB liability ‐ ending (a) ‐ (b) $ 2,714,088 3,170,429 $ 2,314,096 $ 3,106,375 $ 3,187,087 $ 3,215,490 $ 3,391,042 $ Covered payroll $ 1,040,847 773,383 $ 1,132,693 $ 1,893,338 $ 1,834,372 $ 2,730,484 $ 2,197,777 $ Net OPEB liability as a percentage of
covered payroll 409.94% 260.76% 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. 92 City of Fort Bragg, California
Required Supplementary Information - Net OPEB Liability Schedule of Contributions June 30, 2024
Fiscal Year Ended June 30, 2024 2023 2022 2021 2020 2019 2018 Actuarially Determined Contribution (ADC) 228,498 $ 230,888 $ 343,213 $ 348,790 $ 374,658 $ 375,390 $ 559,726 $ Contributions in relation to the ADC 489,293 462,544 454,289 425,407 359,262 292,648 492,993 Contribution deficiency ( excess) (260,795) $ (231,656) $ (111,076) $ (76,617) $ 15,396 $ 82,742 $ 66,733 $ Covered payroll 847,173 773,383 1,040,847 1,132,693 1,893,338 1,834,372 2,730,484 Contributions as a percentage of covered payroll 57.76% 59.81% 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. 93 City of Fort Bragg, California
Required Supplementary Information - Schedule of Contributions Miscellaneous Plan
Last 10 Fiscal Years*
2024 2023 2022 2021 2020 2019 2018 2017
Contractually required contribution (actuarially
determined) $ 321,465 339,772 $ 628,487 $ 540,516 $ 514,099 $ 455,093 $ 430,051 $ 392,300 $ Contributions in relation to the actuarially
determined contributions (321,465) (339,772) (628,487) (540,516) (514,099) (394,321) (430,051) 392,300 Contribution deficiency (excess) - $ - $ - $ - $ - $ 60,772 $ - $ 784,600 $ Covered payroll $ 3,129,486 2,711,702 $ 2,614,508 $ 2,327,258 $ 2,661,903 $ 2,833,921 $ 2,641,425 $ 2,598,675 $ Contribution as a percentage of covered payroll 12.53% 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.
* Additional years will be presented as they become available. 94 City of Fort Bragg, California
Required Supplementary Information - Schedule of Contributions Safety Plan
Last 10 Fiscal Years*
2024 2023 2022 2021 2020 2019 2018 2017
Contractually required contribution (actuarially
determined) $ 427,837 245,110 $ 620,401 $ 558,561 $ 637,647 $ 471,193 $ 298,630 $ 387,206 $ Contributions in relation to the actuarially
determined contributions (427,837) (245,110) (620,401) (558,561) (637,647) (471,193) (298,630) (387,206) Contribution deficiency (excess) - $ - $ - $ - $ - $ - $ - $ - $ Covered payroll $ 1,384,365 1,853,718 $ 1,119,662 $ 1,071,290 $ 1,145,799 $ 1,048,497 $ 1,268,709 $ 1,245,549 $ Contribution as a percentage of covered payroll 13.22% 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.
* Additional years will be presented as they become available. 95 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 2020 2019 2018 2017 2016
Plan's Proportion of the Net Pension Liability/(Asset) 0.06368% 0.06550% 0.16609% 0.13012% 0.12508% 0.12037% 0.11653% 0.11210% Plan's Proportionate Share of the Net Pension
Liability/(Asset) $ 3,064,833 3,184,191 $ 3,153,761 $ 5,488,390 $ 5,008,648 $ 4,593,661 $ 4,593,661 $ 3,894,091 $ Plan's Covered Payroll $ 2,614,508 3,129,486 $ 2,327,258 $ 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 101.75% 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 87.30% 87.29% 86.24% 74.96% 76.25% 76.38% 76.38% 82.66% Plan's Proportionate Share of Aggregate Employer
Contribution $ 1,092,169 909,991 $ 777,490 $ 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. * Additional years will be presented as they become available. 96 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 2022 2021 2020 2019 2018 2017 2016
Plan's Proportion of the Net Pension Liability/(Asset) 0.03263% 0.03491% 0.09104% 0.07793% 0.07899% 0.07811% 0.08042% 0.08218% Plan's Proportionate Share of the Net Pension
Liability/(Asset) $ 2,399,174 2,438,768 $ 3,194,968 $ 5,192,221 $ 4,931,069 $ 4,667,131 $ 4,165,367 $ 3,320,431 $ Plan's Covered Payroll 1,384,365 $ 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 176.17% 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 88.10% 87.73% 82.87% 69.95% 70.68% 69.76% 70.60% 75.04% Plan's Proportionate Share of Aggregate Employer
Contribution $ 1,144,186 719,493 $ 826,040 $ 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.
* Additional years will be presented as they become available. 97 This page intentionally left blank.
98 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES 99 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).
100
City of Fort Bragg, California
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2024
Special Capital
Revenue Funds Projects Funds
ASSETS
Cash and investments $ 332,800 4,017,012 $ 4,349,812 $
Receivables:
Intergovernmental - 1,943,235 1,943,235
Loans/Notes receivable 3,029,940 - 3,029,940
Other receivable 10,061 - 10,061
Total assets $ 332,800 9,000,248 $ 9,333,048 $
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities 48,918 $ 242,130 $ 291,048 $ Due to other funds 585,458 33,019 618,477
Total liabilities: 275,149 751,829 1,026,978
Deferred inflows of resources:
Unavailable revenue 2,808,532 - 2,808,532
Total deferred inflows of resources - 2,808,532 2,808,532 Total liabilities and deferred inflows 275,149 3,560,361 3,835,510 Fund Balances:
Restricted - 3,633,790 3,633,790
Assigned 57,651 1,849,766 1,907,417
Unassigned (deficit) - (43,669) (43,669)
Total fund balances 57,651 5,439,887 5,497,538
Total liabilities, deferred inflows and fund balances $ 332,800 9,000,248 $ 9,333,048 $ Funds Totals
Non-Major
Governmental Funds
101
City of Fort Bragg, California
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds
For the year ended June 30, 2024
Special Capital
Revenue Funds Projects Funds
REVENUES:
Taxes and assessments $ - 54,943 $ 54,943 $
Fines and forfeitures 38,418 - 38,418
Intergovernmental - 4,261,638 4,261,638
Use of money and property - 64,474 64,474
Charges for services 75,815 - 75,815
Total revenues - 4,495,288 4,495,288
EXPENDITURES:
Current:
General government - 10,667 10,667
Public safety - 619,809 619,809
Public works 396,056 - 396,056
Community development - 2,891,619 2,891,619
Capital outlay 3,770,211 - 3,770,211
Total expenditures 3,770,211 3,918,151 7,688,362
REVENUES OVER (UNDER) EXPENDITURES (3,770,211) 577,137 (3,193,074) OTHER FINANCING SOURCES (USES):
Transfers in 3,888,407 2,531,579 6,419,986
Transfers out - (1,715,349) (1,715,349)
Total other financing
sources (uses) 3,888,407 816,230 4,704,637
REVENUES AND OTHER FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND OTHER
FINANCING (USES) 118,196 1,393,367 1,511,563
FUND BALANCES:
Beginning of year (60,545) 4,046,520 3,985,975
End of year $ 57,651 5,439,887 $ 5,497,538 $
Funds Totals
Non-Major
Governmental Funds
102
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.
103
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.
104
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.
105
City of Fort Bragg, California
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2024
General Plan
Maintenance Parking
Fee Housing Parking In-lieu Fees
ASSETS
Cash and investments $ 80,181 175,227 $ 37,618 $ - $
Receivables:
Intergovernmental - - - -
Loans/Notes receivable - - - -
Other receivable - - - -
Total assets $ 80,181 175,227 $ 37,618 $ - $
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable - $ - $ - $ - $
Due to other funds - - - 5,137
Deposits payable - - - -
Total liabilities: - - - 5,137
Deferred inflows of resources:
Unavailable revenue - - - -
Total deferred inflows of resources: - - - -
Total liabilities and deferred inflows - - - 5,137
Fund Balances:
Restricted - - - -
Assigned 80,181 37,618 - 175,227
Unassigned (deficit) - - - (5,137)
Total fund balances 80,181 175,227 37,618 (5,137)
Total liabilities deferred inflows and fund balances $ 80,181 175,227 $ 37,618 $ - $ 106
Waste
Parkland State State Construction/ Management
Monitoring/ Tobacco Disability Asset Demolition Community Reporting License Fee Access Fee Forfeiture Ordinance Benefit Pymt Gas Tax $ 26,972 138,163 $ 23,980 $ 482,676 $ 113,967 $ 269 $ - $ - - 19 - - - 59,749
- - - - - - -
- - - - - - -
$ 26,972 138,163 $ 23,999 $ 482,676 $ 113,967 $ 269 $ 59,749 $ $ - - $ 2 $ 1,194 $ - $ - $ - $
- - - - - - 91,274
- - - - - - -
- - 2 1,194 - - 91,274
- - - - - - -
- - - - - - -
- - 2 1,194 - - 91,274
- - - 481,482 - - -
138,163 26,972 23,997 - 113,967 269 -
- - - - - - (31,525)
26,972 138,163 23,997 481,482 113,967 269 (31,525)
$ 26,972 138,163 $ 23,999 $ 482,676 $ 113,967 $ 269 $ 59,749 $ (continued)
107
City of Fort Bragg, California
Combining Balance Sheet
Nonmajor Special Revenue Funds, continued
June 30, 2024
MCOG
Traffic & Fire Overall Work
RMRA Safety Equipment Plan
ASSETS
Cash and investments $ - 27,086 $ 95,172 $ - $
Receivables:
Intergovernmental 33,324 600 - 36,687
Loans/Notes receivable - - - -
Other receivable - - 3,729 -
Total assets $ 600 60,410 $ 98,901 $ 36,687 $
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable - $ - $ - $ - $
Due to other funds - 1,282 - 35,592
Deposits payable - - - -
Total liabilities: 1,282 - - 35,592
Deferred inflows of resources:
Unavailable revenue - - - -
Total deferred inflows of resources: - - - -
Total liabilities and deferred inflows 1,282 - - 35,592 Fund Balances:
Restricted - - - -
Assigned - 60,410 98,901 1,095
Unassigned (deficit) - (682) - -
Total fund balances (682) 60,410 98,901 1,095
Total liabilities deferred inflows and fund balance $ 600 60,410 $ 98,901 $ 36,687 $ 108
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 $ 111,128 2,110 $ 388,834 $ 135,006 $ - $ 199,047 $ 1,979,576 $ 4,017,012 $ - - - - 81,990 - 1,730,866 1,943,235
- - - - - 2,857,125 172,815 3,029,940
- - 6,332 - - - - 10,061
$ 111,128 2,110 $ 395,166 $ 135,006 $ 81,990 $ 3,056,172 $ 3,883,257 $ 9,000,248 $ $ - - $ - $ - $ - $ - $ 47,722 $ 48,918 $
- - - - 72,444 - 379,729 585,458
117,453 - - - - - - 117,453
117,453 - - - 72,444 - 427,451 751,829
- - - - - 2,607,125 201,407 2,808,532
- - - - - 2,607,125 201,407 2,808,532
117,453 - - - 72,444 2,607,125 628,858 3,560,361
- - - - - - 3,152,308 3,633,790
2,110 - 395,166 135,006 9,546 449,047 102,091 1,849,766 (6,325) - - - - - - (43,669)
(6,325) 2,110 395,166 135,006 9,546 449,047 3,254,399 5,439,887 $ 111,128 2,110 $ 395,166 $ 135,006 $ 81,990 $ 3,056,172 $ 3,883,257 $ 9,000,248 $ (concluded)
109
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, 2024
General Plan
Maintenance Parking
Fee Housing Parking In-lieu Fees
REVENUES:
Taxes and assessments $ - - $ - $ - $
Fines and forfeitures - - - -
Intergovernmental - - - -
Use of money and property 8,325 3,948 1,852 -
Charges for services 30,974 - - -
Total revenues 3,948 39,299 1,852 -
EXPENDITURES:
Current:
General government 10,517 - - -
Public safety - - - -
Public works - - - -
Community development - - - 64,639
Total expenditures - 10,517 - 64,639
REVENUES OVER (UNDER)
EXPENDITURES 3,948 28,782 1,852 (64,639)
OTHER FINANCING SOURCES (USES):
Transfers in - - - 61,570
Transfers out - - - -
Total other financing
sources and uses - - - 61,570
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES) 3,948 28,782 1,852 (3,069)
FUND BALANCES (DEFICITS):
Beginning of year 146,445 76,233 35,766 (2,068)
End of year $ 80,181 175,227 $ 37,618 $ (5,137) $
110
Waste
Parkland State State Construction/ Management
Monitoring/ Tobacco Disability Asset Demolition Community Reporting License Fee Access Fee Forfeiture Ordinance Benefit Pymt Gas Tax $ - - $ - $ - $ - $ - $ 1,668 $
- - - 17,657 18,876 - -
2,704 3,861 - - - - 173,217
6,816 1,324 1,189 26,794 - - -
- - - - - - -
4,028 6,816 5,050 44,451 18,876 - 174,885
- - 150 - - - -
- - - 211,445 - - -
- 729 - - - - 206,950
- - - - - - -
- 729 150 211,445 - - 206,950
4,028 6,087 4,900 (166,994) 18,876 - (32,065)
- - - - - - -
- - - (55,234) - - -
- - - (55,234) - - -
4,028 6,087 4,900 (222,228) 18,876 - (32,065)
132,076 22,944 19,097 703,710 95,091 269 540
$ 26,972 138,163 $ 23,997 $ 481,482 $ 113,967 $ 269 $ (31,525) $ (continued)
111
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, 2024
MCOG
Traffic & Fire Overall Work
RMRA Safety Equipment Plan
REVENUES:
Taxes and assessments $ - - $ 53,275 $ - $
Fines and forfeitures - 1,885 - -
Intergovernmental 1,005,734 - - 71,753
Use of money and property - - 4,188 -
Charges for services - - - -
Total revenues 1,885 1,005,734 57,463 71,753
EXPENDITURES:
Current:
General government - - - -
Public safety 2,567 235,568 - -
Public works 182,929 - - 5,448
Community development - - - -
Total expenditures 2,567 182,929 235,568 5,448
REVENUES OVER (UNDER)
EXPENDITURES (682) 822,805 (178,105) 66,305
OTHER FINANCING SOURCES (USES):
Transfers in - - - -
Transfers out (696,907) - - (61,570)
Total other financing
sources and uses - (696,907) - (61,570)
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES) (682) 125,898 (178,105) 4,735
FUND BALANCES (DEFICITS):
Beginning of year - (65,488) 277,006 (3,640)
End of year $ (682) 60,410 $ 98,901 $ 1,095 $
112
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 $ - - $ - $ - $ - $ - $ - $ 54,943 $
- - - - - - - 38,418
- - - 95,551 98,179 - 2,810,639 4,261,638
- - 543 - - 9,495 - 64,474
- - 44,841 - - - - 75,815
- - 45,384 95,551 98,179 9,495 2,810,639 4,495,288
- - - - - - - 10,667
- - - - - - 170,229 619,809
- - - - - - - 396,056
- - 849 250 95,699 2,280,000 450,182 2,891,619
- - 849 250 95,699 2,280,000 620,411 3,918,151
- - 44,535 95,301 2,480 (2,270,505) 2,190,228 577,137
- - - - - 2,280,000 2,531,579 190,009
- - - - - - (901,638) (1,715,349)
- - - - - 2,280,000 (711,629) 816,230
- - 44,535 95,301 2,480 9,495 1,478,599 1,393,367
2,110 350,631 39,705 7,066 439,552 (6,325) 1,775,800 4,046,520 $ (6,325) 2,110 $ 395,166 $ 135,006 $ 9,546 $ 449,047 $ 3,254,399 $ 5,439,887 $ (concluded)
113
City of Fort Bragg, California
Combining Balance Sheet
Federal and State Grant Special Revenue Funds
June 30, 2024
STP D1
CDBG Streets and State Parks
Unclassified Highway Prop 84
Program Income COPS Allocation Grant
ASSETS
Cash and investments $ 37,062 7,025 $ 1,266 $ - $
Restricted cash and investments - -
Receivables:
Intergovernmental - - 5,460 1,348,925
Loans/Notes receivable - - - -
Total assets $ 37,062 7,025 $ 6,726 $ 1,348,925 $
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 37,062 6,726 1,348,925
Unassigned (deficit) - - - -
Total fund balances 37,062 7,025 6,726 1,348,925
Total liabilities deferred inflows and fund balances $ 37,062 7,025 $ 6,726 $ 1,348,925 $ 114
HCD
HOME Other State CDBG Grant
Grant Grants CDBG Grant Covid Totals
$ 29,659 43,592 $ 390,396 $ 1,470,576 $ 1,979,576 $
240,145 136,336 - - 1,730,866
172,815 - - - 172,815
$ 269,804 216,407 $ 526,732 $ 1,470,576 $ 3,883,257 $
$ 46,724 - $ 467 $ 531 47,722 $
120,989 9,116 - 249,624 379,729
167,713 9,116 467 250,155 427,451
201,407 - - - 201,407
- 201,407 - - 201,407
167,713 210,523 467 250,155 628,858
5,884 526,265 1,220,421 3,152,308
102,091 - - - 102,091
102,091 5,884 526,265 1,220,421 3,254,399
$ 269,804 216,407 $ 526,732 $ 1,470,576 $ 3,883,257 $
115
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, 2024
STP D1
CDBG Streets and State Parks
Unclassified Highway Prop 84
Program Income COPS Allocation Grant
REVENUES:
Intergovernmental $ 123,498 - $ - $ 1,348,334 $
Total revenues 123,498 - - 1,348,334
EXPENDITURES:
Current:
Public safety 170,229 - - -
Community development - - - -
Total expenditures 170,229 - - -
REVENUES OVER (UNDER)
EXPENDITURES (46,731) - - 1,348,334
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) (46,731) - - 1,348,334
FUND BALANCES (DEFICIT):
Beginning of year 7,025 83,793 6,726 591
End of year $ 37,062 7,025 $ 6,726 $ 1,348,925 $
116
HCD Other
HOME State CDBG Grant
Grant Grants CDBG Grant COVID Totals
$ 738,139 1,963 $ 589,917 $ 8,788 $ 2,810,639 $
738,139 1,963 589,917 8,788 2,810,639
- - - - 170,229
57,980 382,804 9,398 - 450,182
57,980 - 382,804 9,398 620,411
680,159 1,963 207,113 (610) 2,190,228
- - 190,009 - 190,009
(434,052) - (193,468) (274,118) (901,638)
(434,052) - (3,459) (274,118) (711,629)
246,107 1,963 203,654 (274,728) 1,478,599
3,921 322,611 (144,016) 1,495,149 1,775,800
$ 102,091 5,884 $ 526,265 $ 1,220,421 $ 3,254,399 $
117
City of Fort Bragg, California
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2024
Coastal
Trail
ASSETS
Cash and investments $ 332,800
Total assets $ 332,800
LIABILITIES
AND FUND BALANCES
Liabilities:
Accounts payable 242,130 $
Due to other funds 33,019
Total liabilities: 275,149
Deferred inflows of resources:
Unavailable revenue -
Total deferred inflows of resources: -
Total liabilities and deferred inflows 275,149
Fund Balances:
Assigned 57,651
Total fund balances 57,651
Total liabilities and fund balances $ 332,800
118
City of Fort Bragg, California
Nonmajor Capital Projects Fund
For the year ended June 30, 2024
Coastal
Trail
REVENUES:
Intergovernmental $ -
Total revenues -
EXPENDITURES:
Current:
Community development -
Parks and recreation
Capital outlay 3,770,211
Total expenditures 3,770,211
REVENUES OVER (UNDER)
EXPENDITURES (3,770,211)
OTHER FINANCING SOURCES (USES):
Transfers in 3,888,407
Transfers out -
Total other financing
sources and uses 3,888,407
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER
FINANCING (USES) 118,196
FUND BALANCES (DEFICITS):
Beginning of year (60,545)
End of year $ 57,651
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
119
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 120
City of Fort Bragg, California
Combining Statement of Net Position
Internal Service Funds
June 30, 2024
Information
Building Technology Fleet
Maintenance Fund Services Totals
ASSETS
Current assets:
Cash and investments 407,891 $ 74,574 $ 450,138 $ 932,603 $ Total current assets 74,574 407,891 450,138 932,603
Noncurrent assets:
Capital assets, net 53,752 246,172 1,980,353 2,280,277
Total noncurrent assets 246,172 53,752 1,980,353 2,280,277 Total assets $ 320,746 461,643 $ 2,430,491 $ 3,212,880 $
LIABILITIES AND NET POSITION
Current liabilities:
Accounts payable 6,838 $ 169,026 $ 8,933 184,797 $
Accrued liabilities - 542 - 542
Total current liabilities 169,568 6,838 8,933 185,339
Noncurrent liabilities:
Compensated absences - - - -
Total liabilities 169,568 6,838 8,933 185,339
Net Position:
Net investment in capital assets 53,752 246,172 1,980,353 2,280,277 Unrestricted 401,053 (94,994) 441,205 747,264
Total net position 151,178 454,805 2,421,558 3,027,541
Total liabilities and net position $ 320,746 461,643 $ 2,430,491 $ 3,212,880 $ 121
City of Fort Bragg, California
Combining Statement of Revenues, Expenses, and Changes in Net Position Internal Service Funds
For the year ended June 30, 2024
Information
Building Technology Fleet
Maintenance Fund Services Totals
OPERATING REVENUES:
Interdepartmental charges 281,958 $ 645,745 $ 642,265 $ 1,569,968 $ Other 135 226 - 361
Total operating revenues 645,971 282,093 642,265 1,570,329 OPERATING EXPENSES:
Personnel services 199,590 225,064 126,552 551,206
Repairs and maintenance 20,342 1,834 86,717 108,893
Materials and supplies - 340,667 143,806 484,473
Contractual services 8,050 54,526 428 63,004
Depreciation 7,084 36,015 164,086 207,185
Total operating expenses 658,106 235,066 521,589 1,414,761 OPERATING INCOME (LOSS) (12,135) 47,027 120,676 155,568 NONOPERATING REVENUES (EXPENSES):
Interest revenue 26,364 - - 26,364
Total non-operating revenues (expenses) - 26,364 - 26,364 NET INCOME (LOSS) BEFORE TRANSFERS (12,135) 73,391 120,676 181,932 Transfers in - - 245,901 245,901
Transfers out (247,095) - - (247,095)
Total transfers - (247,095) 245,901 (1,194)
Change in net position (12,135) (173,704) 366,577 180,738 NET POSITION (DEFICIT):
Beginning of year 628,509 163,313 2,054,981 2,846,803
End of year 454,805 $ 151,178 $ 2,421,558 $ 3,027,541 $ 122
City of Fort Bragg, California
Combining Statement of Cash Flows
Internal Service Funds
For the year ended June 30, 2024
Information
Building Technology Fleet
Maintenance Fund Services Totals
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from interfund services provided 282,093 $ 645,971 $ 642,265 $ 1,570,329 $ Cash paid to suppliers for goods and services (22,806) (382,672) (515,137) (920,615) Cash paid to employees for services (199,590) (232,050) (126,552) (558,192) Net cash provided (used) by operating activities 31,249 59,697 576 91,522
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:
Transfers received - - 245,901 245,901
Transfers paid (247,095) - - (247,095)
Net cash provided (used) by noncapital financing activities - (247,095) 245,901 (1,194)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition and construction of capital assets (1) (43,716) (266,409) (310,126) Net cash (used) by capital and related financing activities (43,716) (1) (266,409) (310,126) CASH FLOWS FROM INVESTING ACTIVITIES:
Interest on investments 26,364 - - 26,364
Net cash provided by investing activities - 26,364 - 26,364 Net increase (decrease) in cash and cash equivalents (12,467) (161,035) (19,932) (193,434) CASH AND CASH EQUIVALENTS:
Beginning of year 568,926 87,041 470,070 1,126,037
End of year 407,891 $ 74,574 $ 450,138 $ 932,603 $
Reconciliation of income from operations to net
cash provided (used) by operating activities:
Operating income (loss) 47,027 $ (12,135) $ 120,676 $ 155,568 $ Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation 7,084 36,015 164,086 207,185
(Increase) decrease in current assets:
Accounts receivable - - - -
Increase (decrease) in liabilities:
Accounts payable 5,586 14,355 (284,186) (264,245)
Accrued liabilities - (6,986) - (6,986)
Net cash provided by operating activities $ 31,249 59,697 $ 576 $ 91,522 $ 123
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124
Page(s)
Financial Trends
126-136
Revenue Capacity
137-145
Debt Capacity
146-153
Demographic and Economic Information
154-155
Operating Information
156-158
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 125
City of Fort Bragg, California
Net Position by Component
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Accrual basis of accounting)
(In Thousands)
2015 2016 2017 2018
Governmental activities
Net investment in capital assets 35,914 $ 38,647 $ 39,523 $ 42,293 $ Restricted 2,289 3,536 2,513 3,758 Unrestricted (deficit) (203) (399) (1,518) (5,115) Total governmental activities net position $ 41,784 38,625 $ 40,518 $ 40,935 $ Business‐type activities
Net investment in capital assets 30,047 $ 30,503 $ 31,597 $ 33,572 $ Restricted 108 108 108 108 Unrestricted (deficit) 3,649 4,232 6,912 7,515 Total business‐type activities net position $ 34,843 33,804 $ 38,617 $ 41,195 $ Primary government
Net investment in capital assets 65,961 $ 69,150 $ 71,119 $ 75,865 $ Restricted 3,022 3,644 2,621 3,866 Unrestricted (deficit) 3,466 3,833 5,395 2,400 Total primary government net position $ 76,627 72,429 $ 79,135 $ 82,131 $ Source: City Finance Department
$‐
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
2015 2016 2017 2018 2019
Governmental activities Business‐type activities
126
2019 2020 2021 2022 2023 2024
$ 42,102 41,400 $ 41,686 $ 30,092 $ 42,156 $ 44,880 $ 1,922 1,279 2,947 2,578 6,755 5,840 (5,026) (2,456) (4,140) 5,304 (4,057) (424) $ 38,998 40,223 $ 40,493 $ 37,974 $ 44,854 $ 50,296 $ $ 45,807 37,806 $ 46,331 $ 48,678 $ 50,402 $ 52,050 $ 108 108 108 108 108 108 8,704 8,094 12,277 12,985 9,755 7,407 $ 54,619 46,008 $ 58,716 $ 61,771 $ 60,265 $ 59,565 $ $ 87,909 79,206 $ 88,017 $ 78,770 $ 92,558 $ 96,930 $ 2,030 1,387 3,055 2,686 6,863 5,948 3,678 5,638 8,137 18,289 5,698 6,983 $ 93,617 86,231 $ 99,209 $ 99,745 $ 105,119 $ 109,861 $ 2020 2021 2022 2023 2024
127
City of Fort Bragg, California
Changes in Net Position
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Accrual basis of accounting)
(In Thousands)
2015 2016 2017 2018 2019
Expenses
Governmental activities:
General government 2,593 $ 2,877 $ 2,221 $ 2,804 $ 2,384 $ Public safety 4,187 3,663 4,388 4,461 4,338 Public works 2,435 2,108 2,750 2,873 2,979 Community development 840 1,700 1,018 1,208 1,056 Parks and recreation ‐ ‐ 38 ‐ ‐ Marketing and promotions ‐ ‐ ‐ ‐ ‐ Interest and fiscal charges 26 30 21 53 47 Total governmental activities expenses 9,561 10,898 10,434 11,399 10,804 Business‐type activities:
Water 2,286 2,264 2,158 2,034 1,920 Sewer 2,801 2,897 2,847 2,569 2,674 C.V. Starr Center 2,382 2,292 2,320 2,386 2,722 Total business‐type activities expenses 7,469 7,453 7,325 6,989 7,316 Total primary government expenses 17,030 18,351 17,760 18,388 18,120 Program revenues
Governmental activities:
Charges for services:
General government 2,809 2,818 1,967 1,324 1,108 Public safety 289 50 299 365 371 Public works 102 344 558 1,049 1,155 Community development ‐ 30 232 520 293 Operating grants and contributions 4,702 725 1,251 2,259 765 Capital grants and contributions 2,383 3,762 922 3,324 3,296 Total governmental activities program revenues 10,046 7,968 5,227 8,840 6,988 Business‐type activities:
Charges for services:
Water 2,496 2,624 2,683 2,909 3,077 Wastewater 3,194 3,332 3,305 3,495 3,599 C.V. Starr Center 706 722 696 743 711 Operating grants and contributions ‐ ‐ ‐ ‐ ‐ Capital grants and contributions ‐ ‐ ‐ ‐ ‐ Total business‐type activities program revenues 6,396 6,678 6,683 7,147 7,387 Total primary government program revenues 16,442 14,646 11,911 15,987 14,375 Net (Expense)/Revenue
Governmental activities 485 (5,207) (2,930) (2,558) (3,817) Business‐type activities (1,073) (775) (642) 158 70 Total primary government net expense (588) (3,705) (5,849) (2,400) (3,747) 128
2020 2021 2022 2023 2024
$ 3,581 2,623 $ 4,515 $ 2,999 $ 3,796 $ 4,386 5,374 4,903 5,647 5,981 2,438 3,122 3,551 3,579 3,927 4,105 876 825 5,890 1,219 ‐ ‐ ‐ ‐ ‐ 93 186 227 210 237 38 5 438 532 245 14,641 12,186 14,459 18,857 15,405 1,688 1,676 2,677 3,034 3,358 3,043 2,302 3,942 4,727 3,639 1,229 2,081 2,145 2,593 2,875 5,960 6,059 8,764 10,354 9,872 20,601 18,245 23,223 29,211 25,277 978 880 1,584 1,874 2,024 252 290 319 309 288 1,583 1,980 2,006 1,801 2,857 ‐ ‐ ‐ 188 569 3,974 800 3,968 6,287 2,800 1,584 1,345 187 2,400 1,674 8,371 5,295 8,064 12,857 10,212 3,660 3,181 3,033 3,043 3,057 4,017 3,484 3,584 3,522 3,627 ‐ 466 983 639 719 ‐ ‐ ‐ ‐ ‐ ‐ 4,512 646 ‐ 0 7,677 11,643 8,246 7,205 7,403 16,048 16,938 16,310 20,062 17,614 (6,270) (6,891) (6,397) (6,000) (5,193) 1,718 5,584 (519) (3,149) (2,469) (4,552) (1,307) (6,916) (9,149) (7,663) (continued)
129
City of Fort Bragg, California
Changes in Net Position
Last Ten Fiscal Years
(Fiscal year ended June 30)
(Accrual basis of accounting)
(In Thousands)
2015 2016 2017 2018 2019
Governmental activities:
Taxes:
Property taxes 909 1,007 1,084 1,035 1,075 Sales and use tax 2,523 2,458 2,414 1,785 1,728 Transient lodging tax 1,858 1,948 2,149 2,619 2,640 Franchise taxes 493 491 ‐ ‐ ‐ Other taxes 435 403 674 719 762 Use of money and property 113 87 (23) (110) 66 Unrealized gains and losses ‐ ‐ ‐ ‐ 195 Other general revenues 67 120 151 61 8 Special Items (507) ‐ ‐
Transfer in (out) (89) (451) (2,003) (898) (1,029) Extraordinary item: Redevelopment dissolution ‐ ‐ ‐ ‐ ‐ Total governmental activities 6,283 6,089 3,940 5,210 5,445 Business‐type activities:
Property taxes 234 220 234 236 249 Sales and use tax 807 846 881 915 879 Use of money and property 27 42 56 98 168 Other revenues 161 271 1,242 272 77 Transfer in (out) 89 451 2,003 898 1,029 Total business‐type activities 1,333 1,815 4,416 2,420 2,402 Total primary government 7,616 7,904 8,356 7,630 7,847 Changes in Net Position
Governmental activities 6,768 3,159 (1,267) 2,652 1,628 Business‐type activities 1,040 260 3,774 2,578 2,472 Total primary government 7,028 $ 4,199 $ 2,507 $ 5,230 $ 4,100 $ Source: City Finance Department
130
2020 2021 2022 2023 2024
1,152 1,157 1,214 1,208 1,272 3,127 2,743 3,427 3,322 3,261 3,322 2,204 3,445 3,192 3,092 626 590 654 740 762 185 185 198 213 213 112 107 ‐ ‐ ‐ (124) 228 (8) (278) 659 266 24 28 832 1,172 ‐ ‐ ‐ ‐ ‐ (901) (1,573) (1,939) 150 204 ‐ ‐ ‐ ‐ ‐ 7,765 5,665 7,019 9,380 10,635 263 236 269 305 310 1,100 945 1,211 1,175 1,170 115 178 104 312 495 ‐ 95 50 ‐ ‐ 901 1,573 1,939 (150) (204) 2,379 3,027 3,573 1,643 1,770 10,144 8,692 10,592 11,023 12,406 (1,226) 1,495 622 3,381 5,442
4,097 8,611 3,054 (1,506) (699) $ 5,592 7,385 $ 3,676 $ 1,874 $ 4,743 $ (concluded)
131
2015 2016 2017 2018 2019
General Fund:
Nonspendable 205 $ $ 4 66 $ 94 $ 9 $ Committed 2,135 ‐ 1,694 1,682 Unassigned 4,553 968 790 1,172 1,451 Total general fund 4,758 3,107 856 2,959 3,142 All Other Governmental Funds:
Restricted 2,914 2,530 3,536 3,758 1,267 Assigned 1,322 1,472 1,116 1,292 3,005 Unassigned (deficit) (1,157) 731 (331) (470) (16) Total all other governmental funds 3,079 4,733 4,321 4,580 4,256 Total all governmental funds $ 7,837 $ 7,839 5,177 $ 7,539 $ 7,398 $ 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
2015 2016 2017 2018 2019 2020
General Fund All Other Governmental Funds:
132
2020 2021 2022 2023 2024
$ 7 3 $ 12 $ 16 $ 9 $ 2,679 2,160 2,679 2,679 2,679 1,498 529 2,401 1,628 4,702 4,184 2,692 5,092 4,324 7,390 2,947 1,922 6,078 6,755 5,840 814 1,426 1,790 3,948 2,362 (248) (284) (144) (292) (75) 3,513 3,064 7,724 10,411 8,126 $ 7,697 5,756 $ 12,816 $ 14,735 $ 15,517 $ 2021 2022 2023 2024
133
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: 2015 2016 2017 2018 2019
Taxes and assessments $ 5,067 4,949 $ 6,486 $ 7,131 $ 7,138 $ Intergovernmental 5,219 7,463 1,847 4,592 772 Charges for services 242 457 203 139 128 Fines, forfeitures and penalties 162 178 211 84 118 Licenses and permits 273 254 97 132 128 Use of money and property 174 120 55 126 213 Unrealized gains and losses ‐ ‐ ‐ ‐ 195 Reimbursements 3,413 2,930 2,345 2,691 2,453 Other 127 59 210 82 37 Total revenues 14,677 16,410 11,454 14,976 11,182 Expenditures:
Current:
General government 2,685 2,875 2,548 2,881 2,522 Public safety 4,100 3,581 4,233 4,383 4,189 Public works 1,874 3,469 1,902 1,947 1,968 Community development 1,693 834 1,011 1,201 1,050 Marketing and promotions ‐ ‐ ‐ ‐ ‐ Cost allocations ‐ ‐ ‐ ‐ ‐ Capital outlay 5,058 1,725 1,992 3,780 282 Debt Service:
Principal Retirement 116 120 127 169 169 Interest and fiscal charges 31 26 21 17 17 Total expenditures 12,223 15,964 11,834 14,378 10,197 Reconciliation of Governmental Revenues
Less Expenditures to Fund Equity:
Revenues over (under) expenditures 446 $ 2,454 $ (380) $ 598 $ 985 $ Other financing sources (uses):
Proceeds from sales of assets ‐ ‐ ‐ ‐ ‐ Extraordinary loss on dissolution of redevelopment ‐ ‐ ‐ ‐ ‐ Transfers in 5,683 2,714 3,775 2,944 2,830 Transfers out (6,069) (3 (5,266) ,292) (3,843) (3,957) Total other financing sources (uses) (386) ( (1,491) 578) (898) (1,127) Net change in fund balances 60 $ 1,876 $ (1,871) $ (300) $ (142) $ Debt service as a percentage of noncapital expenditures 1.35% 1.39% 1.50% 1.75% 1.88% Source: City Finance Department
$(2,000)
$(1,500)
$(1,000)
$(500)
$‐
$500
$1,000
$1,500
$2,000
$2,500
2015 2016 2017 2018 2019 2020
Net change in fund balances $60 $1,876 $(1,871) $(300) $(142) $(1,643) CHANGE IN FUND BALANCE ‐ GOVERNMENTAL FUNDS
134
2020 2021 2022 2023 2024
$ 8,412 6,878 $ 8,937 $ 8,676 $ 8,600 $ 5,883 2,702 4,487 8,695 5,240 47 61 65 202 164 103 112 146 158 72 92 97 86 95 85 13 409 (34) (111) 943 ‐ ‐ ‐ ‐ ‐ 2,247 2,335 3,278 3,765 4,383 264 22 23 143 1,155 17,061 12,616 16,988 21,622 20,643 2,256 2,094 3,319 2,810 3,245 4,094 5,029 4,507 4,389 5,131 1,847 1,901 1,966 2,224 2,553 4,368 846 1,134 4,680 3,341 93 186 227 210 237 478 475 789 1,223 1,130 415 1,975 1,504 745 4,014 38 180 ‐ 3,425 195 ‐ 5 358 ‐ ‐ 13,589 12,691 13,804 19,707 19,847 $ 3,472 (75) $ 3,184 $ 1,916 $ 796 $ 9 6 16 ‐ 25 ‐ ‐ ‐ ‐ ‐ 866 616 1,788 1,465 7,565 (2,403) (2,190) (3,727) (1,299) (7 ,360) (1,528) (1,568) (1,923) 166 231 $ 1,944 (1,643) $ 1,261 $ 2,082 $ 1,027 $
1.73% 0.29% 2.91% 18.06% 1.23%
2021 2022 2023 2024
$1,944 $1,261 $2,082 $1,027
135
(In Thousands)
Fiscal
Year
Ended Sales & Transient Other
June 30, Property (1) Use Tax Occupancy Tax Taxes Total 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 7,084
2020 1,157 2,743 2,204 775 6,879
2021 1,152 3,127 3,322 811 8,412
2022 1,214 3,427 3,445 852 8,938
2023 1,208 3,322 3,192 953 8,675
2024 1,272 3,261 3,092 974 8,599
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
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
TAX REVENUES BY SOURCE ‐
GOVERNMENTAL FUNDS
Property (1) Sales & Use Tax Transient Occupancy Tax Other Taxes 136
Taxpayer Business Type Taxpayer Business Type
Arco AM/PM Mini Marts Service Stations Arco AM/PM Mini Marts Service Stations Chevron Service Stations Service Stations Boatyard Tobacco Miscellaneous Retail CVS/Pharmacy Drug Stores Chevron Service Stations Service Stations David's Deli Restaurants Cliff House Restaurant Restaurants 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 Florist/Nursery Harvest Market Food Markets Geo Aggregates Bldg.Matls-Whsle Kemppe Liquid Gas Energy Sales Harvest Market Food Markets McDonald's Restaurants Restaurants Kemppe Liquid Gas Energy Sales Mendo Mill & Lumber Company Bldg.Matls-Retail Laurel Deli & Desserts Restaurants Noyo Harbor Inn Restaurants McDonald's Restaurants Restaurants Noyo River Grill Restaurants Mendo Mill & Lumber Company Bldg.Matls-Retail O'Reilly Auto Parts Auto Parts/Repair Mendocino County Horticulture Supply Florist/Nursery Redwood Coast Fuels Energy Sales O'Reilly Auto Parts Auto Parts/Repair Restaurante Los Gallitos Restaurants Rino Service Stations Service Stations Rino Service Stations Service Stations Rite Aid Drug Stores Drug Stores Rite Aid Drug Stores Drug Stores Rossi Building Materials Bldg.Matls-Retail Rossi Building Materials Bldg.Matls-Retail Safeway Stores Food Markets Safeway Stores Food Markets Sears Roebuck & Company Department Stores Sinclair Service Stations Service Stations Sinclair Service Stations Service Stations Sport Chrysler-Jeep-Dodge Auto Sales - New Sport Chrysler-Jeep-Dodge Auto Sales - New Taco Bell Restaurants The Brewery Shop Restaurants
The Brewery Shop Restaurants True Value Hardware Bldg.Matls-Retail Source: MuniServices, LLC / Avenu Insights & Analytics City of Fort Bragg, California
Last Fiscal Year and Nine Years Ago
Principal Sales Tax Producers
2023-24 2014-15
137
CDTFA NAICS SECTOR 2024Q1 2023Q1 2022Q1 2021Q1
Accommodation and Food Services 335,257 299,719 311,726 219,712 Agriculture, Forestry, Fishing and Hunting 14,459 10,246 10,635 6,187 Arts, Entertainment, and Recreation 10,644 8,673 8,183 189 Construction 46,484 52,546 49,711 42,824
Educational Services 463 216 881 866
Information 15,151 11,995 12,478 7,167
Manufacturing 11,949 9,899 4,086 5,144
Mining, Quarrying, and Oil and Gas Extraction 64,581 86,125 93,131 68,023 Other Services (except Public Administration) 33,377 30,456 31,829 27,773 Professional, Scientific, and Technical Services 2,818 3,278 3,826 3,254 Real Estate and Rental and Leasing 2,588 2,703 3,276 4,114 Retail Trade 1,130,753 1,198,078 1,190,475 1,044,523
Utilities 4,592 5,016 5,000 3,129
All Other NAICS Sectors 35,653 27,690 24,709 23,374
Grand Total 1,708,767 1,746,640 1,749,947 1,456,280
Source: MuniServices, LLC / Avenu Insights & Analytics Historical Sales Tax Amounts by Benchmark Year
Last Ten Fiscal Years
City of Fort Bragg, California
138
2020Q1 2019Q1 2018Q1 2017Q1 2016Q1 2015Q1
261,645 270,483 282,222 261,139 233,034 218,376
11,023 9,955 3,547 7,404 11,516 6,866
5,903 5,394 3,516 3,469 3,454 4,002
47,581 50,973 35,283 34,009 35,318 33,583
1,331 2,082 7,876 7,499 8,318 6,932
7,675 9,327 5,569 4,825 4,031 6,163
8,727 8,337 7,222 6,312 4,704 4,951
90,412 86,275 73,796 56,363 62,526 80,000
31,619 31,125 30,343 31,197 31,897 31,049
4,980 5,892 7,944 7,989 8,627 8,693
2,239 2,712 2,455 2,525 2,525 2,944
1,050,886 1,045,425 1,056,982 987,423 990,177 983,868
4,514 5,124 4,588 5,430 4,696 3,743
21,707 21,418 21,025 18,791 18,414 8,834
1,550,243 1,554,521 1,542,367 1,434,374 1,419,237 1,400,004 139
(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)
2014‐15 590,079 $ 31,347 $ 621,426 $ #REF! 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 2023‐23 766,503 $ 37,340 $ 803,843 $ 7.4% 1.185000 965,275 1.200826 2023‐24 833,186 $ 35,150 $ 868,336 $ 8.0% 1.169000 1,060,711 1.221545 (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
140
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 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 - - 179 9,804 19,769 20,036 20,413 20,817 19,854 19,556 Agriculture 33 34 34 34 - - - - - 11,181
Vacant 18,931 18,682 18,963 21,162 21,817 23,423 24,116 22,554 22,866 12,354 Unitary 542 543 543 340 - - - - - -
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 - - - - - 4,031 -
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 $ 621,426 615,627 $ 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, Califo
Last Nine Fiscal Years
Residential
62%
Commercial
24%
Miscellaneous
5%
Industrial
3%
Professional
2%
Agriculture
1% Vacant
1% Unitary
1%
Institution
1%
2023‐24 Assessed Value
Residential Commercial Miscellaneous Industrial Professional Agriculture Vacant Unitary Institution
141
Direct and Overlapping Property Tax Rates
2014‐15 2015‐16 2016‐17 2017‐18 2018‐19
COUNTY GENERAL FUND 0.745000 0.745000 0.745000 0.745000 0.745000 CITY OF FORT BRAGG 0.255000 0.255000 0.255000 0.255000 0.255000 TOTAL 1.000000 1.000000 1.000000 1.000000 1.000000
Override Assessments
LOCAL SPECIAL DISTRICSTS 0.026000 0.025000 0.018000 0.026000 0.024000 SCHOOLS 0.101000 0.107000 0.115000 0.107000 0.114000
TOTAL 0.127000 0.132000 0.133000 0.133000 0.138000
TOTAL TAX RATE 1.127000 1.132000 1.133000 1.133000 1.138000 Source: Mendocino County Auditor/Controller data, MuniServices, LLC / Avenu Insights & Analytics TRA 001‐001 is represented for this report
Rates are not adjusted for ERAF
Last Ten Fiscal Years
City of Fort Bragg
142
2019‐20 2020‐21 2023‐22 2023‐23 2023‐24
0.745000 0.745000 0.745000 0.745000 0.745000
0.255000 0.255000 0.255000 0.255000 0.255000
1.000000 1.000000 1.000000 1.000000 1.000000
0.024000 0.023000 0.023000 0.023000 0.022000
0.107000 0.101000 0.114000 0.162000 0.147000
0.131000 0.124000 0.137000 0.185000 0.169000
1.131000 1.124000 1.137000 1.185000 1.169000
143
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
(%)
Georgia Pacific LLC 15,190,147 1.75% 31,215,167 5.02%
Rap Investors LP 12,335,745 1.42% 10,653,995 1.71%
Boatyard Associates Phase 11,210,452 1.29% 9,516,557 1.53% Tenants Choice LLC 9,670,610 1.11%
Safeway Inc 0.93% 7,020,082 8,049,843 1.13%
North Coast Brewery 0.81% 4,854,758 7,035,860 0.78%
GP Investors LLC 6,917,068 0.80%
Sierra Northern Railway 0.78% 6,742,743
Colombi Jeanette Succttee 6,075,811 0.70% 4,951,442 0.80% Anderson Logging 0.64% 3,308,036 5,588,756 0.53%
Fort Bragg Hospitality LLC 5,477,200 0.63%
Tanti Family II LLC 5,013,028 0.58% 4,368,451 0.70%
Kao Kuami 4,970,063 0.57% 4,226,779 0.68%
Kashi Keshav Investments 4,826,407 0.56% 4,104,730 0.66% SNB Govind Corporation 4,749,269 0.55%
Grosvenor Van Ness Associa 4,590,912 0.53% 3,899,088 0.63% Longs Drug Stores California 0.49% 3,856,470 4,234,502 0.62% Ray Ronald R Ttee 4,229,325 0.49%
Comcast 0.43% 2,693,172 3,721,093 0.43%
DFA Walnut Associates LP 3,672,000 0.42%
Fort Bragg Hotel LLC 3,566,631 0.41% 3,453,696 0.56%
Kemppe Liquid Gas Corporation 3,309,969 0.38% 2,611,640 0.42% Glassbeach Estates LLC 3,167,127 0.36%
Noyo Harbor Inn LLC 3,076,890 0.35%
Fort Bragg Investments LLC 0.35% 3,007,867
Hurst Jason S 4,518,331 0.73%
North Otown Industrial Center 0.58% 3,589,852
Keaton Richard J Julie 3,024,356 0.49%
Noyo Vista Inc. 2,966,777 0.48%
RBJ Assoc LLC 2,544,238 0.41%
Moura Senior Housing 2,521,775 0.41%
Miller Helen Centeno 2,430,465 0.39%
Taubold Timothy E Ttee 2,403,069 0.39%
Whitteaker Donald E Dorothy C 2,331,790 0.38%
Lee Michael V Dona H Ttees 2,300,132 0.37%
Total Top 25 Taxpayers 150,429,318 17.32% 129,364,848 20.82% Total Taxable Value 868,335,808 100.00% 621,426,140 100.00% 2023-24 2014-15
Source: Mendocino County Assessor data, MuniServices, LLC / Avenu Insights & Analytics 144
Fiscal
Year Taxes Levied
Ended for the Percentage
June 30, Fiscal Year Amount of Levy
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
2023 N/A N/A N/A
2024 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
$230,000
$235,000
$240,000
$245,000
$250,000
$255,000
$260,000
$265,000
$270,000
$275,000
$280,000
2014 2015 2016 2017 2018
Taxes Levied Taxes Collected
145
Fiscal
Year Lease Total
Ended Certificates of Revenue Governmental Certificates of Notes Capital June 30, Participation Bond Activities Participation Payable Leases 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 7,593 - 7,593 4,981 - -
2024 7593 7,593 - 4,556 - -
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)
146
Total Total Percentage
Business-type Primary of Personal Per
Activities Government Income (1) Capita (1)
$ 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 3.3% 920
6,320 6,320 2.8% 884
12,574 4,981 4.8% 1,793
12,149 4,556 4.0% 1,692
147
Legal Debt Margin Information
2015 2016 2017 2018 2019
Assessed Value 590,079 $ 607,137 $ 626,121 $ 646,586 $ 671,692 $ Conversion Percentage 25% 25% 25% 25% 25%
Adjusted Assessed Value 147,520 151,784 156,530 161,647 167,923 Debt Limit Percentage 15% 15% 15% 15% 15%
Debt limit 22,128 22,768 23,480 24,247 25,188
Total net debt applicable to limit - - - - -
Legal debt margin 22,128 $ 22,768 $ 23,480 $ 24,247 $ 25,188 $ Total net debt applicable to the limit
as a percentage of debt limit 0% 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. 148
2020 2021 2022 2023 2024
$ 715,581 695,389 $ 720,807 $ 766,503 $ 833,186 $
25% 25% 25% 25% 25%
178,895 173,847 180,202 191,626 208,297
15% 15% 15% 15% 15%
26,834 26,077 27,030 28,744 31,244
- - - - -
$ 26,834 26,077 $ 27,030 $ 28,744 $ 31,244 $
0% 0% 0% 0% 0%
149
2023-24 Assessed Valuation: $ 874,214,142
Total Debt City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2024 % Applicable (1) Debt 6/30/2024 Redwoods Joint Community College District $ 18,005,000 3.731% 671,767 $ Fort Bragg Unified School District 46,453,919 38.051% 17,676,181 Mendocino Coast Hospital District 3,600,000 21.396% 770,256 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 19,118,204 $
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Mendocino County Certificates of Participation 19,205,000 6.171% 1,185,141 $ Mendocino County Pension Obligation Bonds 21,470,000 6.171% 1,324,914 Redwoods Joint Community College District General Fund Obligations 7,410,000 3.731% 276,467 City of Fort Bragg General Fund Obligations 100.000% 7,820,000 7,820,000 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 10,606,522 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 100.000% 2,680,000 2,680,000 DIRECT DEBT $ 7,820,000
TOTAL OVERLAPPING DEBT $ 24,584,726
COMBINED TOTAL DEBT $ 32,404,726 (2)
Ratios to 2023-24 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 2.19%
Total Direct Debt ($7,820,000) 0.89%
Combined Total Debt 3.71%
Ratios to Redevelopment Successor Agency Incremental Valuation ($266,380,936):
Total Overlapping Tax Increment Debt 1.01%
Source: Avenu Insights & Analytics
California Municipal Statistics, Inc
City of Fort Bragg, California
Direct and Overlapping Debt
Current Year
June 30, 2024
(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.
150
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151
Fiscal
Year Less: Net Total
Ended Revenues Operating Available Debt
June 30, & Transfers Expenses
1 Revenue Principal Interest Service Coverage
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 1,597 396 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
2024 2,978 3,057 79 332 26 358 0.2
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
152
Less: Net Total
Revenues Operating Available Debt
& Transfers Expenses
1 Revenue Principal Interest Service Coverage
$ 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)
2,731 3,627 896 93 92 185 4.8
Sewer Fund Debt
Debt Service
Business-type Activities
153
Fiscal Year Population (1)
Personal Income
(in thousands)
Per Capita Personal
Income (2) Median Age (3)
Public School
Enrollment
City Unemployment Rate (%)
(4)
2014-15 7,343 154,002 20,973 38.2 1,873 4.2%
2015-16 7,672 160,798 20,959 38.5 1,934 4.5%
2016-17 7,772 170,733 21,968 36.6 1,891 4.0%
2017-18 7,512 175,523 23,366 40.0 1,920 3.0%
2018-19 7,478 184,300 24,646 39.2 1,884 2.4%
2019-20 7,427 190,379 25,633 39.8 1,911 13.0%
2020-21 7,409 204,996 27,668 39.0 1,779 8.1%
2021-22 7,153 227,323 31,780 43.0 1,756 2.3%
2022-23 7,014 259,996 37,068 41.3 1,764 3.4%
2023-24 7,179 297,373 41,423 50.4 1,758 3.2%
City of Fort Bragg, California
Demographic and Economic Statistics
Last Ten Fiscal Years
4.) Unemployment Data are provided by the EDD, Bureau of Labor Statistics Department.
Source: MuniServices, LLC / Avenu Insights & Analytics
1.) Population Projections are provided by the California Department of Finance Projections.
2.) Income Data and Median Age is provided by the U.S. Census Bureau.
3.) Public School Enrollment is for the Fort Bragg Unified School District. 1,700
1,750
1,800
1,850
1,900
1,950
K‐12 Public School Enrollment
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Average Unemployment Rate
6,830
6,950
7,070
7,190
7,310
7,430
7,550
7,670
7,790
Population
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000 Per Capita Personal Income
154
Business Name
Number of
Employees
Percent of
Total
Employment
(%)
Number of
Employees
Percent of
Total
Employment
(%)
Adventist Health Mendocino Coast Medical Center 335 13.96% 320 8.82% Fort Bragg Unified School District* 296 12.33% 250 6.89% Parents & Friends Inc 186 7.75% 125 3.44%
Safeway 128 5.33% 126 3.47%
Mendocino Coast Clinics Inc 126 5.25% 125 3.44%
North Coast Brewing CO Inc 94 3.92% 104 2.87%
Mendocino County** 92 3.83% 79 2.18%
Anderson Logging Inc 86 3.58%
City of Fort Bragg 67 2.79%
The Wharf & Anchor Lodge 35 1.46% 65 1.79%
Sherwood Oaks Health Center 94 2.59%
CV Starr Community Center 89 2.45%
Total Top Employers 1,445 60.21% 1,377 37.93%
Total City Employment (1) 2,400 3,630
Source: City of Fort Bragg - ACFR Fiscal Year Ended June 30, 2015 Publication (1) Total City Labor Force provided by EDD Labor Force Data Notes:
Results based on direct correspondence with city’s local businesses. *Excludes non-bargaining on call subs or sports coaches.
Source: MuniServices, LLC / Avenu Insights & Analytics
City of Fort Bragg, California
Principal Employers
Last Fiscal Year and Seven Years Ago
2024 2015
155
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General Government
Administrative Services 6.50 6.00 6.50 7.00 7.00 6.50 6.00 6.00 7.00 5.00 Finance 4.00 4.00 4.00 4.00 4.00 4.00 5.00 5.00 5.00 4.00 Public Safety
Police 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 22.00 24.00 Community Services
Community Development 4.30 4.00 4.50 4.80 4.80 4.30 4.00 4.00 4.00 3.50 Public works 12.80 12.60 12.80 14.00 14.00 12.80 13.00 13.00 13.00 20.50 Enterprise Funds 8.00 8.00 8.00 8.00 8.00 8.00 7.00 7.00 7.00 18.50 Total 56.60 57.60 57.80 59.80 59.80 57.60 57.00 57.00 58.00 75.50 Source: City Finance Department
Administrative
Services
5.00 7%
Finance
4.00 5%
Police
24.00 32%
Community
Development
3.50 5%
Public works
20.50 27%
Enterprise
Funds
18.50 24%
Full-time and Part-time City Employees
by Function (Full Time Equivalent) FY
2024
156
City of Fort Bragg, California
Operating Indicators by Function
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function/Program 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Building Permits Issued 192 141 122 162 194 141 99 146 146 146 New Construction 7 6 4 9 12 N/A 8888
Single Family Residential 02 0 5 4 26666
Second Unit 1 3448 38888
Mixed Use, Commercial & Residential 21 0 0 4 10000
Multi-Family Residential 00 0 0 2 01111
Low Income Residential 40 0 0 0 01111
City Clerk
Council/Agency Resolutions Passed 98 127 122 121 92 98 134 148 148 116 Number of Ordinances Passed 3 5 6 8 9 5 6 13 13 9
Number of Contracts Approved 69 30 74 105 71 69 45 97 97 117 Number of PRA Requests Processed 74 73 79 146 145 N/A 294 280 294 116 Public Safety
Traffic Accidents 172 221 160 145 147 221 146 122 122 84 Traffic Violations - DUI 26 28 45 49 40 28 26 48 48 92
Bookings 737 668 619 795 625 668 523 162 162 568
Moving Cites 949 498 344 428 368 498 429 122 122 340
Parking Cites 484 835 842 941 869 835 416 416 416 141
Field Interviews and Information Cases 1,301 1,217 1,403 1,936 1,289 1,217 4,065 3,191 3,191 1,433 Crime Reports 1,317 1,501 1,496 1,554 1,262 1,501 1,193 1,098 1,098 921 Fire 1
Total Number of Calls 617 579 665 626 752 579 579 579 579 627 Structure Fires 21 29 38 10 37 29 29 29 29 34
Vehicle Fires 9 3 16 5 4 3 3 3 3 6
Vegetation Fires 31 40 33 23 40 31 31 31 31 27
Misc Fires (Chimney, Debris, Electronically, etc.) 36 17 18 81 80 36 36 36 36 29 Medical Aid 150 163 199 197 248 150 150 150 150 163
Rescue 10 22 16 11 7 22 22 22 22 9
Hazardous Condition/Materials Calls 41 70 75 58 73 70 70 70 70 139 Mutual Aid/Agency Assist 12 9 18 23 18 12 12 12 12 14
Traffic Accidents 98 133 98 115 100 133 133 133 133 98
Services Call 96 91 80 99 126 91 91 91 91 105
Other Calls & Incidents 113 2 74 4 19 2 2 2 2 3
Water
Number of customer accounts billed 33 33,716 33 ,671 34 ,873 33 ,146 33 ,339 34 ,671 34 ,290 34 ,426 33 ,381 ,811 Water annual demand in thousand gallons 204 189 ,900 197 ,530 209 ,568 210 ,982 200 ,152 190 ,164 176 ,158 173 ,458 173 ,562 ,231 Available supply of water in thousand gallons 218 239,356 223 ,851 241 ,022 261 ,805 259 ,102 230 ,590 199 ,547 200 ,143 216 ,321 ,995 total Customer service calls 1 1 ,177 1 ,253 1 ,253 1 ,193 1 ,488 838 ,253 990 1 2 ,742 ,336 Meter installs/removals/change outs 14 16 14 24 13 16 88 34 732 1 ,468 Meter repairs 8 1 34 5 23 1 - - - -
Leak investigations 11 6 34 29 61 11 43 51 73 85
Service profiles 57 65 31 63 61 65 47 45 23 24
Turn on/off 669 508 878 891 1 669 ,099 542 592 656 636
Manual Reads 453 416 444 126 111 416 543 806 1 3 ,795 ,810 Misc. 60 75 53 55 68 75 206 302 990 1,591
Wastewater
Customer service calls, wastewater 41 52 43 33 36 52 44 44 44 33 New customer sewer lines installed 31 4 0 2 12222
Sewer mains cleaned/flushed in miles 15.5 15 17.38 16 18 15 17 17 17 11 Sewer mains and laterals repaired in number of jobs 16 11 12 9 8 11 18 18 18 10 Sewer manholes inspected 363 363 374 374 374 363 370 370 370 186 Sewer manholes installed 0 0000 00000
Sewer spill responses 7 5112 53332
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. 157
City of Fort Bragg, California
Capital Asset Statistics by Function
Last Ten Fiscal Years
(Fiscal year ended June 30)
Function 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Police :
Stations 1111111111
Public works
Streets (miles) 26.4 26.4 26.4 26.4 26.4 26.4 26.4 26.4 26.4 27.5 Alleys (miles) 19 19 19 19 19 19 19 19 19 19
Storm drains (miles) 10 10 10 10 10 10 10 10 10 10
Streetlights 725 725 725 725 725 725 725 725 725 725
Sidewalks 40 40 40 40 40 40 40 40 40 40
Water
Water treatment plant 1111111111
Water mains (miles) 30 30 30 30 30 30 30 30 30 30
Raw water transmission line (miles) 5.75 5.75 5.75 5.75 5.75 5.75 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 30
Parks and Facilities
Parks 4445244444
Recreational/Guest Facilities 3333333333
Government Facilities 2222222222
Source: City Finance, Public Works and Planning Departments 158
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
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING
STANDARDS
Independent Auditor’s Report
The Honorable City Council
City of Fort Bragg
Fort Bragg, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Fort Bragg, California (City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated April 25, 2025.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
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April 25, 2025 JJACPA, Inc.
Dublin, CA