Business-Type Activities
Enterprise Funds
EXHIBIT A
70 FIDUCIARY FUND FINANCIAL STATEMENTS
Private-Purpose Trust Funds
The FORA Dissolution Administration Fund is used to account for the long-term debt and debt service issued by FORA prior to its dissolution which is administered by the City and held in Trust.
The Successor Agency Private Purpose Trust Funds includes the Successor Agency Obligation Retirement Fund and the Successor Agency Housing Assets Fund. The Successor Agency was created as a result of the State order to dissolve California Redevelopment Agencies. These funds are used to track the activities by the Successor Agency Oversight Board and the City’s Department of Finance in relation to the remaining assets and liabilities of the Successor Agency. The Housing Successor is governed by the City of Marina City Council and is obligated to use the Housing Successor Agency’s assets according to Redevelopment law for low and moderate-income housing.
EXHIBIT A
71 City of Marina
Statement of Net Position
Fiduciary Funds
June 30, 2025
Private
Purpose
Trust
Funds
ASSETS
Cash and investments 5,676,446$
Restricted cash and investments with fiscal agents 7,953,710 Accounts receivable 230,000
Interest receivable 44,694
Prepaid items 5,462
Capital assets, land 900,000
Total assets 14,810,312$
LIABILITIES
Accounts payable 251,124$
Accrued salaries and benefits 11,375
Interest payable 505,546
Deposits and other liabilities 1,993,396
Noncurrent liabilities:
Due within on year 2,595,000
Due in more than one year 56,189,633
Total liabilities 61,546,074$
NET POSITION
Held in trust for private purposes (46,735,762)$
The accompanying notes are an integral part of these financial statements.
EXHIBIT A
72 City of Marina
Statement of Changes in Net Position
Fiduciary Funds
For the Year Ended June 30, 2025
Private
Purpose
Trust
Funds
ADDITIONS
Property taxes 9,553,864$
Property tax in-lieu 29,139
Investment earnings 433,858
Total additions 10,016,861
DEDUCTIONS
Program costs 2,348,885
Legal and professional fees 66,999
Employee costs 204,470
Occupancy and operating costs 3,841
Payments to other agencies 2,061,615
Interest 2,121,809
Total deductions 6,807,619
Change in net position 3,209,242
Total net position - beginning (49,945,004)
Total net position - ending (46,735,762)$
The accompanying notes are an integral part of these financial statements.
EXHIBIT A
73 This page is intentionally blank
EXHIBIT A
74 NOTES TO THE BASIC
FINANCIAL STATEMENTS
EXHIBIT A
75 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Marina, California, (the City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies.
The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below.
A. Financial Reporting Entity
As required by GAAP, these basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City Council acts as the governing board. In addition, the City staff performs all administrative and accounting functions for these entities and these entities provide their services entirely to the City. Blended component units, although legally separate entities are, in substance, part of the City's operations and data from these units are combined with data of the City. Each blended component unit has a June 30 year-end. The following entities are reported as blended component units:
Abrams B Non-Profit Corporation
The Abrams B Non-Profit Corporation was formed to account for operations of a 192-unit multi-family housing development known as Abrams B Apartments under a 50-year ground lease from the City of Marina, the owners of the property. The ground lease is reported as a capital asset “leasehold interest” on the balance sheet of the Abrams B Housing Fund. Although a legally separate entity, the Corporation is reported on a blended basis as part of the primary government.
Preston Park Sustainable Community Non-Profit Corporation The Preston Park Sustainable Community Non-Profit Corporation (the Property) was formed to account for operations of a 354 unit multi-family apartment complex known as Preston Park. The Property is owned by the City of Marina. Although a legally separate entity, the Property is reported on a blended basis as part of the primary government.
The City applies all applicable GASB pronouncements for certain accounting and financial reporting guidance. In December of 2010, GASB issued Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements.
GASB 62 incorporates pronouncements issued on or before November 30, 1989 into GASB authoritative literature. In June of 2015, GASB issued Statement No. 76, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. GASB 76 supersedes Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments. GASB 76 also amends GASB 62 and AICPA Pronouncements paragraphs 64, 74, and 82. The GAAP hierarchy sets forth what constitutes GAAP for all state and local governmental entities. It establishes the order of priority of pronouncements and other sources of accounting and financial reporting guidance that a governmental entity should apply. The sources of authoritative GAAP are categorized in descending order of authority as follows:
a. Officially established accounting principles—Governmental Accounting Standards Board (GASB) Statements (Category A)
b. GASB Technical Bulletins; GASB Implementation Guides; and literature of the AICPA cleared by the GASB (Category B).
EXHIBIT A
76 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
If the accounting treatment for a transaction or other event is not specified by a pronouncement in Category A, a governmental entity should consider whether the accounting treatment is specified by a source in Category B.
B. Basis of Presentation, Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures or expenses, as appropriate. These funds are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regulations, restrictions, or limitations. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Government-Wide Financial Statements
The City's government-wide financial statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City. Fiduciary activities of the City are not included in these statements.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support.
These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, deferred inflows of resources, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The Statement of Activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those clearly identifiable with a specific function or segment. Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the fiduciary funds are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Certain eliminations have been made as prescribed by GASB Statement No. 34 in-regards-to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transactions have been eliminated; however, those transactions between governmental and business-type activities have not been eliminated. The following interfund activities have been eliminated:
Transfers in/Transfers out
EXHIBIT A
77 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The City has presented all major funds that met the applicable criteria.
All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (up to 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, taxpayer-assessed tax revenues (sales taxes, transient occupancy taxes, etc.), licenses, grant revenues and earnings on investments. Expenditures are recorded in the accounting period in which the related fund liability is incurred.
Unearned revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the unearned revenue is removed from the combined balance sheet and revenue is recognized.
The City reports the following funds as major funds:
General Fund
The General Fund is the City's primary operating fund. This 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 another fund. For the City, the general fund includes such activities such as public safety, public ways and facilities, parks and recreation services, and economic development services.
City Capital Projects Fund
This fund is used to account for the City's major capital projects.
Impact Fee Fund
The Impact Fee Fund accounts for impact fees imposed on new development as permitted by law, and related impact remediation costs. Remediation costs are not accounted for within this fund, but are recorded as transfers to the Capital Projects Fund, where remediation project costs are accumulated.
EXHIBIT A
78 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
FORA Dissolution Fund
The FORA Dissolution Fund is used to account for resources received from the Fort Ord Reuse Authority upon dissolution for Community Development and Habitat Management.
Abrams B Debt Service Fund
The Abrams B Debt Service Fund is used to account for resources restricted to retirement of Abrams B Bonds principal and interest and the payment of those debt obligations.
Additionally, the City reports the following nonmajor fund types of governmental funds:
Special Revenue Funds
Special revenue funds account for and report the proceeds of specific revenue sources that are restricted, committed or assigned to specific purposes other than debt service or capital projects.
Debt Service Funds
Debt service funds account for resources accumulated and restricted to pay debt service on long-term debt obligations.
Capital Project Funds
Capital project funds account for and report financial resources that are restricted, committed, or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other capital assets in governmental funds.
Proprietary Funds
In the fund financial statements, proprietary funds are presented using the accrual basis of accounting.
Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the “economic resources measurement focus”. This means all assets, deferred outflows of resources, liabilities (whether current or noncurrent) and deferred inflows of resources associated with their activities are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal value. Non-operating revenues, such as subsidies, taxes, and investment earnings result from nonexchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the proprietary fund financial statements.
The City has the following enterprise funds that have been reported as major:
Marina Municipal Airport Operating Fund
The Marina Municipal Airport Operating Fund is sued to account for all financial transactions relating to City's airport.
Preston Park Housing Fund
The Preston Park Housing Fund is used to account for the operations of the Preston Park apartments.
Abrams B Housing Fund
The Abrams B Housing Fund is used to account for the operations of the Abrams B apartments.
EXHIBIT A
79 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
Fiduciary Fund Financial Statements
Fiduciary fund financial statements consist of a Statement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. Fiduciary fund financial statements are presented using the “economic resources measurement focus” under the accrual basis of accounting.
The City reports the following fiduciary funds:
FORA Dissolution Administration Private Purpose Trust Fund The FORA Dissolution Administration Fund is used to account for the long-term debt and debt service issued by FORA prior to its dissolution which is administered by the City and held in Trust.
Successor Agency Private Purpose Trust Funds
The Successor Agency Private Purpose Trust Funds includes the Successor Agency Obligation Retirement Fund and the Successor Agency Housing Assets Fund. The Successor Agency was created as a result of the State order to dissolve California Redevelopment Agencies. These funds are used to track the activities by the Successor Agency Oversight Board and the City’s Department of Finance in relation to the remaining assets and liabilities of the Successor Agency. The Housing Successor is governed by the City of Marina City Council and is obligated to use the Housing Successor Agency’s assets according to Redevelopment law for low and moderate-income housing.
C. Cash, Cash Equivalents and Investments
The City pools cash resources from all funds in order to facilitate the management of cash. The balance in the pooled cash account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interest-bearing accounts and other investments for varying terms.
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. For the purpose of the statement of cash flows, the City considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non-pooled cash and investments (consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above.
Deposit and Investment Risk Disclosures - In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB Statement No. 3), certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas: Interest Rate Risk, Overall Credit Risk, Custodial Credit Risk, Concentrations of Credit Risk, and Foreign Currency Risk.
Other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures. The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to change in interest rates.
EXHIBIT A
80 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and Application. Accordingly, the change in fair value of investments is recognized as an increase or decrease to investment assets and investment income.
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction. In determining this amount, three valuation techniques are available:
Market approach - This approach uses prices generated for identical or similar assets or liabilities.
The most common example is an investment in a public security traded in an active exchange such as the NYSE.
Cost approach - This technique determines the amount required to replace the current asset. This approach may be ideal for valuing donations of capital assets or historical treasures. Income approach - This approach converts future amounts (such as cash flows) into a current discounted amount.
Each of these valuation techniques requires inputs to calculate a fair value. Observable inputs have been maximized in fair value measures, and unobservable inputs have been minimized.
D. Restricted Cash and Investments
Certain restricted cash and investments are held by fiscal agents for the redemption of bonded debt, for acquisition and construction of capital projects, and to meet bond indenture debt reserve requirements. Cash and investments are also restricted for deposits held for others within the enterprise funds. Amounts held in Trust for FORA Dissolution Administration and Successor Agency obligations are also reported as restricted cash and investments.
E. Interfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “due to/from other funds.” Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable government funds to indicate that they are not available for appropriation and are not expendable available financial resources. The City considers all trade and property tax receivables to be fully collectible and therefore no allowance for uncollectible accounts is considered necessary.
F. Receivables
Billed, but unpaid, services provided to individuals or non-governmental entities are recorded as accounts receivable. Revenues earned but not collected by year-end are accrued. No allowance for uncollectible accounts receivable has been provided as management has determined that uncollectible accounts have historically been immaterial and the direct write-off method does not result in a material difference from the allowance method.
EXHIBIT A
81 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
G. Loans Receivable
Repayments of outstanding loans are classified as a revenue source in the applicable funds when collected and expenditures in the years disbursed. The portion of loans receivable deemed to be unavailable have been offset by Unavailable Revenues in the accompanying financial statements, which is a part of deferred inflows of resources.
H. Lease Receivables
When applicable, the City’s lease receivables are measured at the present value of lease payments expected to be received during the lease term. A deferred inflow of resources is recorded for the lease.
The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable plus incentive payments received. The deferred inflow of resources is amortized on a straight-line basis over the term of the lease.
I. Prepaid Expenses and Inventory
The aviation fuel inventory held by the Airport is stated at cost using the first-in-first-out (FIFO) valuation method. Materials and supplies used by governmental funds are recorded as expenditures at the time they are purchased or obtained.
Prepaid expenses are also recognized under the consumption method. Payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid expenses in both government-wide and fund financial statements.
J. Capital Assets
Capital assets used in governmental fund operations, including infrastructure assets (i.e. roads, curbs, gutters, bridges, sidewalks, drainage systems, lighting systems, and other assets) are reflected in the government-wide financial statements, along with related depreciation. Capital assets are defined by the City as assets with an initial individual cost of more than $10,000 for equipment, $100,000 for buildings and improvements and $200,000 for infrastructure, and an estimated life in excess of 1 year. Purchased capital assets are valued at historical cost or estimated historical cost. Donated capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are valued at acquisition value on the date donated. Capital assets acquired under lease or purchase agreements are capitalized when the City accumulates an ownership equity in the assets acquired.
The purpose of depreciation is to spread the cost of capital assets equitably among all users over the life of these assets. The amount charged to depreciation expense each year represents that year’s pro rata share of the cost of capital assets. Major outlays for capital assets and improvements are capitalized as projects are constructed.
Intangible right-to-use assets are amortized over the shorter of the lease term or the useful life of the underlying asset, unless the lease contains a purchase option that the City has determined is reasonably certain of being exercised, then the lease asset is amortized over the useful life of the underlying asset. Intangible right-to-use subscription assets are amortized over the shorter of the subscription term or the useful life of the underlying asset.
EXHIBIT A
82 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
Depreciation and amortization is provided using the straight-line method whereby the cost of the asset is divided by its expected useful life in years and the result is charged to expense each year until the asset is fully depreciated or amortized. The City has assigned the useful lives of the assets which range from four to forty years. Abrams Housing and Preston Park Housing Proprietary Funds have 50-year leasehold interests in these housing developments. The leasehold is depreciated over those 50 years. The City of Marina remains the property owner of the Abrams and Preston Park Housing projects.
Depreciation is recorded on a straight-line basis over the useful lives of the assets as follows:
Buildings and improvements 20 Years
Infrastructure 40 Years
Runways 20 Years
Vehicles and equipment 4-20 Years
K. Deferred Outflows/Deferred Inflows
In addition to assets, the statement of financial position or balance sheet 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 or fund balance that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.
In addition to liabilities, the statement of financial position or balance sheet 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 or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.
L. Interest Payable
In the government-wide and proprietary fund financial statements, interest payable of long-term debt is recognized as an incurred liability for governmental fund types. The City has not allocated the interest on long-term debt to departments. In the fund financial statements, governmental fund types do not recognize the interest payable when the liability is incurred. Interest on long-term debt is recorded in the fund statements when payment is made.
M. Compensated Absences
The City recognizes a liability for compensated absences for leave time that (1) has been earned for services previously rendered by employees, (2) accumulates and is allowed to be carried over to subsequent years, and (3) is more likely than not to be used as time off or settled during or upon separation from employment. Based on the criteria listed, two types of leave qualify for liability recognition for compensated absences – vacation and sick leave. The liability for compensated absences is reported as incurred in the government-wide and proprietary fund financial statements. The liability for compensated absences includes salary-related taxes and benefits, where applicable.
Vacation
The City’s policy permits employees to accumulate earned but unused vacation benefits, which are eligible for payment at the employee’s current pay rate upon separation from employment.
Sick Leave
EXHIBIT A
83 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
Sick leave is paid in accordance with the applicable employee Memorandum of Understanding (MOU) or individual employment contract. A liability for estimated value of sick leave that will be used by employees as time off is included in the liability for compensated absences.
N. Long-Term Liabilities
In the government-wide financial statements and proprietary fund statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental or business -type activities.
Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Debt issuance costs are expensed in year incurred.
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 financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.
O. Subscription Based Information Technology Arrangements (SBITAs) The City recognizes subscription liabilities with an initial, individual value of $150,000 or more. The City uses its estimated incremental borrowing rate to measure subscription liabilities unless it can readily determine the interest rate in the arrangement. The City’s estimated incremental borrowing rate is based on its most recent public debt issuance.
P. Benefit Plans
Pension Expense
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (the Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS.
For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
Other Postemployment Benefit (OPEB) Expense
For purposes of measuring the Total 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 City’s Retiree Benefits Plan (the OPEB Plan) and additions to/deductions from the OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the OPEB Plan. For this purpose, the OPEB Plan recognizes benefit payments when 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, 2024
Measurement Period June 30, 2023 to June 30, 2024
EXHIBIT A
84 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
Q. Fund Balances
In accordance with Government Accounting Standards Board 54, Fund Balance Reporting and Governmental Fund Type Definitions, the City classifies governmental fund balances as follows:
Nonspendable
Nonspendable fund balance represents balances set aside to indicate items that do not represent available, spendable resources even though they are a component of assets. Fund balances required to be maintained intact, such as Permanent Funds, and assets not expected to be converted to cash, such as prepaids, notes receivable, and land held for redevelopment are included. However, if proceeds realized from the sale or collection of nonspendable assets are restricted, committed, or assigned, then Nonspendable amounts are required to be presented as a component of the applicable category.
Restricted
Restricted fund balances have external restrictions imposed by creditors, grantors, contributors, laws, regulations, or enabling legislation which requires the resources to be used only for specific purpose.
Encumbrances and nonspendable amounts subject to restrictions are included along with spendable resources.
Committed
Committed fund balances have constraints imposed by passage of a Resolution of the City Council which may be altered only by Resolution of the City Council. Encumbrances and nonspendable amounts subject to Council commitments are included along with spendable resources. The City considers Resolutions to be the highest level of action that can be taken by Council that constitutes the most binding constraint.
Assigned
Assigned fund balances are amounts constrained by the City’s intent to be used for a specific purpose, but are neither restricted nor committed. Intent is expressed by the City Council or its designee and may be changed at the discretion of the City Council or its designee. This category includes encumbrances; nonspendable amounts, when it is the City’s intent to use proceeds or collections for a specific purpose, and residual fund balances, if any, of Special Revenue, Capital Projects, and Debt Service Funds, which have not been restricted or committed. The City Council has delegated the authority to make assignments of fund balance to the City Manager and Finance Director.
Unassigned
Unassigned fund balance represents residual amounts that have not been restricted, committed, or assigned. This includes the residual general fund balance and residual fund deficits, if any, of other governmental funds.
Flow Assumption / Spending Order Policy
When expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to be spent first. When expenditures are incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to be spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City Council has directed otherwise.
EXHIBIT A
85 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
R. Net Position
In the government-wide financial statements, net position is classified in the following categories:
Net Investment in Capital Assets
This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that are attributed to the acquisition, construction, or improvement of the assets. In addition, deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt also are included in the net investment in capital assets component of net position.
Restricted Net Position
This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.
Unrestricted Net Position
This amount is all net position that does not meet the definition of "net investment in capital assets" or "restricted net position."
The detail of amounts reported for each of the above defined net position categories is reported in the government-wide Statement of Net Position.
Use of Restricted/Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first.
S. Interfund Transactions
Interfund services provided and used are accounted for as revenue, expenditures or expenses, as appropriate. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursed fund. All other interfund transactions, except for interfund services provided and used and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as transfers.
T. Property Taxes and Special Assessments
The County of Monterey levies, bills, and collects property taxes and special assessments for the City.
Property taxes levied are recorded as revenue when received.
Tax collections are the responsibility of the County Tax Collector. Taxes and assessments on secured and utility rolls constitute a lien against the property, may be paid in two installments the first is due November 1st of the fiscal year and is delinquent if not paid by December 10th and the second is due on February 1
st of the fiscal year and is delinquent if not paid by April 10th. Unsecured personal property taxes do not constitute a lien against real property unless the tax becomes delinquent.
Property valuations are established by the Assessor of the County of Monterey for the secured and unsecured property tax rolls. Under the provisions of Article XIIIA of the State Constitution, properties are assessed at 100% of purchase price or value in 1978 whichever is later. From this base assessment,
EXHIBIT A
86 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
subsequent annual increases in valuation are limited to a maximum of 2 percent. However, increases to full value are allowed for property improvements or upon change in ownership. Personal property is excluded from these limitations, and is subject to annual reappraisal.
Tax levy dates are attached annually on January 1st preceding the fiscal year for which the taxes are levied. The fiscal year begins July 1st and ends June 30th of the following year. Taxes are levied on both real and unsecured personal property, as it exists at that time. Liens against real estate, as well as the tax on personal property, are not relieved by subsequent renewal or change in ownership.
U. Budgetary Information
The City adopts a budget annually for all governmental fund types. This budget is effective July 1 for the ensuing fiscal year. From the effective date of the budget, which is adopted at the fund level, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The legal level of budgetary control is the fund level. The City Council may amend the budget by resolution during the fiscal year. The City Manager has the authority to make adjustments to the operating budget between departments within the same fund. Transfers of operating budgets between funds, use of unappropriated fund balances, and significant changes in capital improvement project budgets require the approval of the City Council. The City’s basis of budgeting is the same as GAAP.
V. Encumbrances
Under encumbrance accounting, purchase orders, contract and other commitments for expenditures are recorded in order to commit that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary integration in all funds. All appropriations and encumbrances lapse at year end, valid outstanding encumbrances (those for which performance under the executory contract is expected in the next year) are re-appropriated and become part of the subsequent year’s budget pursuant to state regulations.
W. Unearned Revenue
Unearned revenue arises when assets are received before revenue recognition criteria have been satisfied.
Grants and entitlements received before eligibility requirements are met are recorded as deferred inflows from unearned revenue. In the governmental fund financial statements, receivables associated with non- exchange transactions that will not be collected within the availability period have been recorded as deferred inflows from unavailable revenue.
X. Use of Estimates
The preparation of basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Y. Implementation of New Accounting Pronouncements
GASB Statement No. 102, Certain Risk Disclosures
This Statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the
EXHIBIT A
87 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
risk of a substantial impact. Additionally, this Statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued.
If a
government determines that those criteria for disclosure have been met for a concentration or constraint, it should disclose information in notes to financial statements in sufficient detail to enable users of financial statements to understand the nature of the circumstances disclosed and the government’s vulnerability to the risk of a substantial impact. The disclosure should include descriptions for (1) the concentration or constraint (2) each event associated with the concentration or constraint that could cause a substantial impact if the event had occurred or had begun to occur prior to the issuance of the financial statements (3) actions taken by the government prior to the issuance of the financial statements to mitigate the risk. The implementation of this standard did not have a material impact on the City’s financial statements and management determined there were no were concentrations or constraints that make the City vulnerable to the risk of substantial impact.
Z. Upc
oming New Accounting Pronouncements
The
City is currently analyzing its accounting practices to identify the potential impact on the financial statements of the following GASB Statements:
GAS
B Statement No. 103, Financial Reporting Model Improvements 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 establishes new accounting and financial reporting requirements or modifies existing requirements related to (a) Management’s discussion and analysis (MD&A) (b) Unusual or infrequent items (c) Presentation of the proprietary fund statement of revenues, expenses, and changes in fund net position (d) Information about major component units in basic financial statements (5) Budgetary comparison information (6) Financial trend information in the statistical section. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter.
GAS
B Statement No. 104, Disclosure of Certain Capital Assets Thi
s Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement 34. Lease assets recognized in accordance with Statement No. 87, Leases, and intangible right-to-use assets recognized in accordance with Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, should be disclosed separately by major class of underlying asset in the capital as-sets note disclosures. Subscription assets recognized in accordance with Statement No. 96, Subscription- Based Information Technology Arrangements, also should be separately disclosed. In addition, this Statement requires intangible assets other than those three types to be disclosed separately by major class.
Thi
s Statement also requires additional disclosures for capital assets held for sale. A capital asset is a capital asset held for sale if (a) the government has decided to pursue the sale of the capital asset and (b) it is probable that the sale will be finalized within one year of the financial statement date. Governments should consider relevant factors to evaluate the likelihood of the capital asset being sold within the established time frame. This Statement requires that capital assets held for sale be evaluated each reporting period. Governments should disclose (1) the ending balance of capital assets held for sale, with separate disclosure for historical cost and accumulated depreciation by major class of asset, and (2) the
EXHIBIT A
88 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
carrying amount of debt for which the capital assets held for sale are pledged as collateral for each major class of asset. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025, and all reporting periods thereafter.
NOTE 2 - CASH AND INVESTMENTS
As of June 30, 2025, cash and investments were reported in the financial statements as follows:
Governmental
Activities
Business-Type
Activities Total
Cash and investments 161,843,178$ 22,123,173$ 5,676,446$ 189,642,797$ Restricted cash and investments 15,773,379 - 7,953,710 23,727,089 Total cash and investments 177,616,557$ 22,123,173$ 13,630,156$ 213,369,886$ Government Wide
Statement of Net Position Fiduciary Funds
Statement of Net
Position
Cash and investments consisted of the following as of June 30, 2025:
Deposits:
Cash on hand 3,700$
Cash with fiscal agents 18,569,793
Cash in banks 6,217,440
Total deposits 24,790,933
Investments:
Local Agency Investment Fund 61,882,534
Money Market Cash 56,667
US Treasury 87,357,598
US Agency Bonds 10,992,649
Municipal Bonds 4,071,000
Certificate of Deposit 491,416
Total investments 164,851,864
Total City Treasury 189,642,797
Restricted cash and investments:
Investments 2,205,035
Cash in banks 2,252,571
Cash with fiscal agent 19,269,483
Total restricted cash and investments 23,727,089
Total cash and investments 213,369,886$
A. Cash Deposits
The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest, and places the City ahead of general creditors of the institution. The market value of pledged securities must equal at least 110 percent of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes that have a value of 150 percent of the City 's total cash deposits. The City has waived the collateral requirements for cash deposits which are fully insured to $250,000 by the Federal Deposit Insurance Corporation (FDIC).
EXHIBIT A
89 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
The bank balances before reconciling items totaled $8,638,734 at June 30, 2025 and were different from carrying amounts due to deposits in transit and outstanding checks. The amount uninsured was $8,388,734, which was collateralized by securities held by pledging financial institutions. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the period-end cash and investment balances.
Interest income from cash and investments with fiscal agents is credited directly to the related fund.
B. Fair Value Measurements
GASB 72 established a hierarchy of inputs to the valuation techniques with three levels:
Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are quoted market prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other than quoted prices that are not observable
Level 3 inputs are unobservable inputs, such as a property valuation or an appraisal.
Investment Policies
City Investment Policy
Under the provisions of the City's investment policy, and in accordance with California Government Code, the following investments are authorized:
Maximum
Maturity
Minimum
Credit
Quality
Maximum
Percentage of
Portfolio
Maximum Investment
in One Issuer
U.S. Treasury Bills, Notes and Bonds (A) N/A No Limit No Limit U.S. Government-Sponsored Enterprise Agencies:
Government National Mortgage Association 5 years N/A No Limit No Limit Federal National Mortgage Association 5 years N/A No Limit No Limit Federal Home Loan Mortgage 5 years N/A No Limit No Limit Corporation Federal Home Loan Bank 5 years N/A No Limit No Limit Banker's Acceptances 180 days N/A 30% One Commercial
Bank
Certificates of Deposit 5 years N/A 15% (B)
Commercial Paper 270 days N/A 15% Highest Rating
by an NRSRO*
Commercial Paper 31 days N/A 30% Highest Rating
by an NRSRO*
Corporate Notes 5 years N/A 30% No Limit
Mutual Funds N/A N/A 20% Highest Rating
by an NRSRO*
Reverse Repurchase Agreements 92 days N/A 20% No Limit
Repurchase Agreements 1 year N/A No Limit No Limit
California Local Agency Investment Fund N/A N/A No Limit $40,000,000 per account
(A) Maximum maturities of 5 years or greater with specific City Council approval (B) $250,000 unless collateralized by eligible securities as provided by California Governmental Code Sections 53651 and 53652.
* Nationally Recognized Statistical Rating Organization Authorized Investment Type
EXHIBIT A
90 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
Under the provisions of the City's investment policy, and in accordance with California Government Code, the following investments are authorized:
Under the terms of certain debt issuances, the City must maintain required amounts of cash and investments with trustees or fiscal agents. These funds are unexpended bond proceeds or are pledged as reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City ordinance, bond indentures or State statute. The table below identifies the investment types that are authorized for investments with fiscal agents. The bond indentures contain no limitations for the maximum investment in any one issuer or the maximum percentage of the portfolio that may be invested in any one investment type.
The table also identifies certain provisions of these debt agreements:
Maximum
Maturity
Minimum
Credit Quality
U.S. Treasury Obligations None N/A
U.S. Agency Obligations None N/A
U.S. Government-Sponsor ed Agency Obligations None N/A
State Obligations :
General Obligation None A
General Short-Term Obligation None A-1+
Special Revenue Bonds None AA
Pre-Refunded Municipal Obligation None AAA
Unsecured Certificates of Depos it 30 days A-1
FDIC-Insured Depos it None N/A
Repurchas e Agreements None A
Commercial Paper 270 days Three highes t categor ies
Bankers' Acceptances (A) A-1
Money Market Mutua l Funds None Three highes t categor ies Inves tment Agreement None N/A
Tax-Exempt Obligations None Three highes t categor ies
State of California- Local Agency Inves tment Fund None N/A (A) Maximum maturities of 5 years or greater with specific City Council approval Author ized Inves tment Type
The City’s portfolio value fluctuates in an inverse relationship to any change in interest rate. Accordingly, if interest rates rise, the portfolio value will decline. If interest rates fall, the portfolio value will rise. The portfolio for year-end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. These portfolio value changes are unrealized unless sold. Generally the City’s practice is to buy and hold investments until maturity dates. Consequently, the City’s investments are carried at fair value.
EXHIBIT A
91 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
C. External Investment Pool
The City's investments with LAIF at June 30, 2025, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:
Structured Notes
These are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.
Asset-Backed Securities
The bulk of asset-backed securities are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The approved investments policy is listed on the LAIF website, located at http://www.treasurer.ca.gov/pmia-laif/.
D. Risk Disclosures
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 term of an investment’s maturity, the greater the sensitivity to changes in market interest rates. One of the ways that the City's interest rate risk is mitigated 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
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of an investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. With the exception of U.S. Treasury obligations and authorized pools, no more than 50% of the City’s total investment portfolio will be invested in a single security type or with a single financial institution to reduce the City’s exposure to credit risks. As of June 30, 2025, the City’s investments were in compliance with the ratings required by the City’s investment policy and Government Code. U.S. Treasury obligations, bonds and commercial paper were rated AAA by S&P and amounts held by bond trustees in money market accounts were rated AAA my S&P and Aaa by Moody’s.
Concentrations of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. As of June 30, 2025, the City had no investments in any one issuer (other than U.S. Treasury obligations, bonds, and the external investment pools) that represented 5% or more of the total City investments.
Custodial Credit Risk
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or 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 investments.
With respect to investments, custodial credit risk generally applies only to direct investments in
EXHIBIT A
92 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF). As of June 30, 2025, the City’s investments had the following maturities:
12 Months
or Less 1-5 years Fair Value
Concen-
trations
Fair Value
Input Levels
Local Agency Investment Fund 61,882,534$ -$ 61,882,534$ 37.5% n/a Money Market Cash 56,667 - 56,667 0.0% n/a US Treasury 71,714,998 15,642,600 87,357,598 53.0% Level 1 US Agency Bonds - 10,992,649 10,992,649 6.7% Level 2 Municipal Bonds - 4,071,000 4,071,000 2.5% Level 2 Certificate of Deposit - 491,416 491,416 0.3% Level 2 Total Investments 133,654,199$ 31,197,665$ 164,851,864$ Investment Type
Maturity
NOTE 3 - NOTES RECEIVABLE
The City has engaged in programs designed to encourage construction or improvement of low-to- moderate income housing or other projects. Under these programs, grants or loans are provided under favorable terms to homeowners who agree to spend these funds in accordance with the City's terms. The balances of these loans arising from these business and housing programs at June 30, 2025 were $551,642. The loans have varying maturity dates and interest rates, depending on loan agreements. The balance of the notes receivable have been offset in the fund financial statements by deferred inflows of resources as they are not deemed measurable and available within 60 days, except for those loans that have current payment activity. The loans were fully reserved for in the Statement of Net Position. The City has a loan program for developers for impact fees and engineering fees imposed by the City. At June 30, 2025 the City had $20,710 in loans receivable outstanding. These loans are offset in the fund financial statements by deferred inflows of resources.
NOTE 4 - LEASES RECEIVABLE
Leases receivable for governmental activities consisted of the following as of June 30, 2025:
Lease Receivable Beginning Additions Reductions Ending
Buildings
Chapparral Country - Equestrian Center 44,458$ 10,944$ 15,297$ 40,105$ Land
GSM-1, Fort Ord Market 673,435 7,999 98,228 583,206 New Cingular AT&T 508,554 224,314 13,020 719,848 T-Mobile 1 Cell Tower Lease 41,029 4,971 21,937 24,063 VDP-1 Comcast Cell Tower 263,547 354,792 23,251 595,088 Total Lease Receivable 1,531,023$ 603,020$ 171,733$ 1,962,310$
EXHIBIT A
93 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
Related deferred inflows of resources for governmental activities consisted of the following as of June 30, 2025
Deferred Inflows of Resources Beginning Additions Reductions Ending Buildings
Chapparral Country - Equestrian Center 43,449$ 11,127$ 15,606$ 38,970$ Land
GSM-1, Fort Ord Market 453,327 184,499 103,852 533,974 New Cingular AT&T 508,554 217,634 29,361 696,827 T-Mobile 1 Cell Tower Lease 22,354 21,086 21,720 21,720 VDP-1 Comcast Cell Tower 163,506 438,151 34,380 567,277 Total Deferred Inflow of Resources 1,191,190$ 872,497$ 204,919$ 1,858,768$ The following summarizes future collections for governmental activities leases receivable:
Fiscal Year Ending June 30: Principal Interest Total
2026 177,861$ 84,565$ 262,426$
2027 161,912 76,509 238,421
2028 162,129 68,755 230,884
2029 162,480 60,881 223,361
2030 171,484 52,636 224,120
2031-2035 284,689 207,383 492,072
2036-2040 369,726 132,860 502,586
2041-2045 280,039 53,004 333,043 2046-2050 191,990 12,582 204,572 Total Governmental Activities 1,962,310$ 749,175$ 2,711,485$ Leases receivable for business-type activities consisted of the following as of June 30, 2025:
Lease Receivable Beginning Additions Reductions Ending
Buildings
A-504 Suddenlink Airport Building Lease 23,905$ 136,452$ 32,144$ 128,213$ A-507 CIRPAS Building Lease 138,346 85,575 148,019 75,902 A-507A Joby 507 526,181 177,763 149,080 554,864 A-510 Joby Bldg Lease - 427,020 67,532 359,488 A-521 Joby Bldg - 165,463 33,085 132,378 A-524A Joby Bldg 486,709 403,806 140,906 749,609 A-527A Joby 776,809 132,490 174,759 734,540 A-529 Joby Bldg 134,167 63,500 69,020 128,647 A-533 Skydive 638,918 180,724 70,237 749,405 A-535 Light and Motion 505,480 860,803 130,636 1,235,647 Land
A-515A ATT-Cingular Cell Tower Lease 35,918 1,156,478 31,471 1,160,925 A-515B Verizon Cell Tower Lease - 156,736 29,219 127,517 A-524B Pac Bell (T-Mobile) 56,858 10,936 32,050 35,744 A-524C DISH 475,093 76,404 9,944 541,553 A-528B Jim Selby 31,838 1,214 1,464 31,588 GL JA20 - Joby Ground-0 4,178,600 5,582,969 91,292 9,670,277 Total Lease Receivable 8,008,822$ 9,618,333$ 1,210,858$ 16,416,297$
EXHIBIT A
94 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
Related deferred inflows of resources for business-type activities consisted of the following as of June 30, 2025:
Deferred Inflows of Resources Beginning Additions Reductions Ending Buildings
A-504 Suddenlink Airport Building Lease 23,560$ 136,288$ 34,253$ 125,595$ A-507 CIRPAS Building Lease 132,747 86,388 146,090 73,045 A-507A Joby 507 503,365 186,466 159,192 530,639 A-510 Joby Bldg Lease - 426,398 78,681 347,717 A-521 Joby Bldg - 161,727 37,322 124,405 A-524A Joby Bldg 478,694 403,054 153,348 728,400 A-527A Joby 749,482 143,122 189,133 703,471 A-529 Joby Bldg 129,211 63,754 70,169 122,796 A-533 Skydive 630,808 183,113 86,129 727,792 A-535 Light and Motion 432,987 913,580 154,187 1,192,380 Land
A-515A ATT-Cingular Cell Tower Lease 35,618 1,156,442 44,842 1,147,218 A-515B Verizon Cell Tower Lease - 155,788 30,348 125,440 A-524B Pac Bell (T-Mobile) 25,718 37,003 31,361 31,360 A-524C DISH 456,388 85,949 22,753 519,584 A-528B Jim Selby 18,250 12,652 2,083 28,819 GL JA20 - Joby Ground-0 4,023,175 5,647,743 271,105 9,399,813 Total Deferred Inflow of Resources 7,640,003$ 9,799,467$ 1,510,996$ 15,928,474$ The following summarizes future collections for business-type activities leases receivable:
Fiscal Year Ending June 30: Principal Interest Total
2026 1,174,078$ 281,388$ 1,455,466$
2027 1,102,791 260,103 1,362,894
2028 1,103,171 240,739 1,343,910
2029 938,820 221,915 1,160,735
2030 591,661 208,324 799,985
2031-2035 1,851,648 896,387 2,748,035
2036-2040 1,333,414 758,760 2,092,174
2041-2045 1,706,130 624,891 2,331,021
2046-2050 2,060,239 455,589 2,515,828
2051-2055 2,113,706 289,960 2,403,666
2056-2060 2,440,639 99,858 2,540,497 Total Business-Type Activities 16,416,297$ 4,337,914$ 20,754,211$ NOTE 5 - INTERFUND TRANSACTIONS
Inter-fund Receivables and Payables
Amounts due to or due from other funds reflect inter-fund balances for services rendered or short-term loans expected to be repaid in the next fiscal year. Advances to or from other funds are long-term loans between funds that areto be repaid in their entirety over several years.
EXHIBIT A
95 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
On November 1, 2006, the Marina Joint Powers Financing Authority issued $14,360,000 revenue bonds for the purpose of financing a loan in the same amount to the Abrams-B Non-Profit Corporation.
Simultaneously, the corporation paid the entire $14,360,000 back to the City of Marina, to pay loan costs and to acquire a 50-year leasehold interest in the Abrams-B Apartments housing project. Also simultaneously, the City paid that cash to The Fort Ord Reuse Authority to purchase the Abrams-B property. Monthly note payments are made by the corporation to the City according to an original amortization schedule which was subsequently revised on November 15, 2016, at a lower interest rate, resulting is smaller monthly payments. Payments on the note are structured to be sufficient for the bond trustee to pay semi-annual principal and interest on the revenue bonds. Bond payments are made semiannually and will be fully re-paid in 2036. The balance of the loan was $7,390,417 at June 30, 2025.
As of June 30, 2025, inter-fund receivables and payables consisted of the following:
Advances to Advances from
Fund Other Funds Other Funds
General Fund 690 -$
Abrams B Debt Service Fund 7,390,417 -
Abrams B Housing Enterprise Fund - 7,390,417 Nonmajor Governmental Funds - 690
Total advances 7,391,107$ 7,391,107$
Transfers In/Out
With Council approval resources may be transferred from one fund to another. The following summarizes transfers between funds during the fiscal year ended June 30, 2025:
Fund Transfer in Transfer out
General Fund 429,002$ 2,658,769$
City Capital Projects 10,698,869 295,665
Impact Fee Fund 918 5, 172,000
FORA Dissolution Fund - 3,950,000
Nonmajor Governmental Funds 12,826,814 11,681,127 Marina Municipal Airport Fund 81,898 279,940 Total Transfers 24,037,501$ 24,037,501$
Transfers were made into the General Fund for services provided to the national park, airport, and nonmajor governmental funds, as well as on-going radio equipment costs. Transfers were made from the General Fund primarily for capital projects. Transfers into the City Capital Projects fund were for identified capital projects, while the transfers out were initiated to support annual radio equipment costs, rather than equipment purchases. Transfers out from the impact fee fund and the FORA dissolution fund were used to support projects that were consistent with funding. Transfers in and out of nonmajor funds were primarily for various capital projects.
EXHIBIT A
96 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
NOTE 6 - CAPITAL ASSETS
Capital assets for governmental activities consisted of the following as of June 30, 2025:
Beginning Transfers/ Ending
Governmental Activities Balance Additions Deletions Adjustments Balance Non-depreciable:
Land 22,080,651$ -$ -$ -$ 22,080,651$ Construction in Progress 12,798,963 26,308,580 (1,796) 3,133,964 42,239,711 Total Non-Depreciable 34,879,614 26,308,580 (1,796) 3,133,964 64,320,362 Depreciable and Amortizable:
Buildings and improvements 53,138,071 2,020,600$ - (301,398) 54,857,273 Equipment 7,562,325 424,843 - - 7,987,168 Infrastructure 44,736,771 - - (2,832,566) 41,904,205 Right of use assets - subscriptions 746,075 577,863 - - 1,323,938 Right of use assets - equipment 1,813,188 569,964 - - 2,383,152 Total Depreciable 107,996,430 3,593,270 - (3,133,964) 108,455,736 Less Accumulated Depreciation & Amortization for:
Buildings and improvements (23,170,320) (815,960)$ - (3,747) (23,990,027) Equipment (6,453,506) (133,047) - - (6,586,553) Infrastructure (9,548,380) (985,139) - 3,747 (10,529,772) Right of use assets - subscriptions (281,210) (253,901) - - (535,111) Right of use assets - equipment (1,241,630) (300,987) - - (1,542,617) Total Accum. Depr. & Amort. (40,695,046) (2,489,034) - - (43,184,080) Total Depreciable Capital Assets - Net 67,301,384 1,104,236 - (3,133,964) 65,271,656 Total Governmental Capital Assets 102,180,998$ 27,412,816$ (1,796)$ -$ 129,592,018$ Depreciation expense for governmental activities was charged to the following programs during the year:
General government 742,568$
Public safety 426,292
Public works 47,757
Economic & community development 981,393
Recreation & cultural services 291,024
Total depreciation expense 2,489,034$
EXHIBIT A
97 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
Capital assets for business-type activities consisted of the following as of June 30, 2025:
Beginning Transfers/ Ending
Business Type Activities Balance Additions Deletions Adjustments Balance Non Depreciable
Land 36,900,000$ -$ -$ -$ 36,900,000$ Construction in progress 49,156 131,003 - - 180,159 Total Non-Depreciable 36,949,156 131,003 - - 37,080,159 Depreciable:
Leasehold interest 48,783,242 - - - 48,783,242 Buildings 10,799,807 - - - 10,799,807 Improvements (airport and runway) 14,090,475 - (130,538) - 13,959,937 Equipment 368,818 37,723 - - 406,541 Total Depreciable 74,042,342 37,723 (130,538) - 73,949,527 Less Accumulated Depreciation
Leasehold interest (10,913,455) (975,665) - - (11,889,120) Buildings (6,618,110) (261,734) - - (6,879,844) Improvements (airport and runway) (10,402,406) (378,122) - - (10,780,528) Equipment (318,731) (5,640) - - (324,371) Total Accumulated Depreciation (28,252,702) (1,621,161) - - (29,873,863) Total Depreciable Capital Assets - Net 45,789,640 (1,583,438) (130,538) - 44,075,664 Total Business Type - Capital Assets 82,738,796$ (1,452,435)$ (130,538)$ -$ 81,155,823$ NOTE 7 - NONCURRENT LIABILITIES
The City's noncurrent liabilities consisted of the following as of June 30, 2025:
Due
Beginning Ending Within One
Long-term Liabilities Balance Additions Deletions Balance Year Governmental Activities:
2015 General Obligation Refunding Bonds 5,820,000$ -$ (340,000)$ 5,480,000$ 370,000$ 2016 Abrams B Housing Revenue Bonds 8,175,000 - (490,000) 7,685,000 505,000 Certificates of Participation 10,315,000 - (245,000) 10,070,000 260,000 COP Premiums 891,861 - (38,777) 853,084 38,777 Leases 571,560 396,784 (300,992) 667,352 250,094 Subscription Liabilities 398,217 568,732 (276,625) 690,324 244,205 Net Pension Liabilities 29,593,077 32,687,877 (33,009,366) 29,271,588 - Total OPEB Obligation 3,556,826 4,131,709 (3,871,024) 3,817,511 95,000 Compensated Absences 1,657,141 75,353 - 1,732,494 433,124 Total Governmental Activities 60,978,682$ 37,860,455$ (38,571,784)$ 60,267,353$ 2,196,200$ Due
Beginning Ending Within One
Long-term Liabilities Balance Additions Deletions Balance Year Business-Type Activities
Berkeley Capital Loan 35,950,000$ -$ -$ 35,950,000$ 35,950,000$ Total Business-Type Activities 35,950,000$ -$ -$ 35,950,000$ 35,950,000$
EXHIBIT A
98 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
Due
Beginning Ending Within One
Long-term Liabilities Balance Additions Deletions Balance Year Fiduciary Funds:
Tax Allocation Bonds:
FORA Series 2020 26,595,000$ -$ (1,460,000)$ 25,135,000$ 1,510,000$ RDA SA, Series 2000A 260,000 - (30,000) 230,000 35,000 RDA SA, Series 2018A 5,610,000 - (260,000) 5,350,000 275,000 RDA SA, Housing Series 2018B 5,345,000 - (250,000) 5,095,000 260,000 RDA SA, Series 2020A 4,605,000 - (100,000) 4,505,000 100,000 RDA SA, Housing Series 2020B 4,540,000 - (145,000) 4,395,000 155,000 RDA SA, Series 2023A 3,890,000 - (60,000) 3,830,000 65,000 RDA SA, Housing Series 2023B 8,795,000 - (185,000) 8,610,000 195,000 Subtotal Tax Allocation Bonds 59,640,000 - (2,490,000) 57,150,000 2,595,000 Bond discounts (167,172) - 11,941 (155,231) - Bond premiums 1,913,165 - (123,301) 1,789,864 - Total Fiduciary Funds 61,385,993$ -$ (2,601,360)$ 58,784,633$ 2,595,000$ 2015 General Obligation Refunding Bonds
In May 2015, the City issued $7,640,000 General Obligation Bonds for the purpose of refunding $7,885,000 of the City's General Obligation Bonds, Election of 2002, Series 2005 which was issued for the purpose of constructing and supplying a library facility in the City. The bonds bear interest at 1.5 % to 5%. The bonds mature in August 2035. Principal payments of $85,000 to $605,000 are due annually on August 1. Interest payments are due semi-annually on February 1 and August 1. The Bonds are subject to an early redemption at par at the option of the City after August 2025.
The City accounts for the bonds in its governmental activities and uses taxes and assessments reported in a debt service fund to fund the principal and interest payments. Future debt service payments are as follows:
Fiscal Year Ending June 30: Principal Interest Total
2026 370,000$ 182,581$ 552,581$
2027 400,000 163,332 563,332
2028 430,000 146,881 576,881
2029 455,000 133,606 588,606
2030 485,000 119,507 604,507
2031-2035 2,735,000 343,160 3,078,160 2036-2037 605,000 10,588 615,588 Total 5,480,000$ 1,099,655$ 6,579,655$
Remarketed 2016 Abrams B Housing Revenue Bonds
In November 2006, the City issued $14,360,000 Multi-family Housing Revenue Bonds for the purpose of financing the acquisition of the Abrams B Apartments. These bonds were remarketed in November 2016.
The bonds bear interest at 0.95% to 3.55%. The bonds mature in November 2036. Principal payments of $110,000 to $160,000 are due annually on November 1. Interest payments are due semi-annually on May 1 and November 1. Beginning on November 15, 2023, the bonds have an optional redemption price of 102%, declining to 101% on November 15, 2024, and at par on November 15, 2025 and thereafter.
EXHIBIT A
99 City of Marina
Notes to the Basic Financial Statements
June 30, 2025
The City accounts for the bonds in its governmental activities and accounts for the revenue debt service in the Abrams B Debt Service Fund. Future debt service payments are as follows:
Fiscal Year Ending June 30: Principal Interest Total
2026 505,000$ 247,813$ 752,813$
2027 790,000 235,505 1,025,505
2028 560,000 215,558 775,558
2029 580,000 196,913 776,913
2030 605,000 177,608 782,608
2031-2035 3,455,000 557,429 4,012,429 2036-2037 1,190,000 42,511 1,232,511 Total 7,685,000$ 1,673,335$ 9,358,335$
Certificates of Participation
In fiscal year 2023, the City issued certificates of participation totaling $10,870,000 at a $969,415 premium, bearing interest 5-5.25%. The following summarizes the future debt service payments:
Fiscal Year Ending June 30: Principal Interest Total
2026 260,000$ 518,325$ 778,325$
2027 275,000 505,325 780,325
2028 285,000 491,575 776,575
2029 300,000 477,325 777,325
2030 315,000 462,325 777,325
2031-2035 1,835,000 2,058,625 3,893,625 2036-2040 2,340,000 1,547,825 3,887,825 2041-2045 3,020,000 869,400 3,889,400 2046-2048 1,440,000 114,450 1,554,450 Total 10,070,000$ 7,045,175$ 17,115,175$
Leases
The City has entered into various leases for the right to use vehicles. Annual payments range from $5,246 to $24,869. The City accounts for its leases in its governmental activities and uses resources from the General Fund to pay the principal and interest payments.
Future debt service payments for the City’s leases are as follows:
Fiscal Year Ending June 30: Principal Interest Total
2026 250,094$ 62,766$ 312,860$
2027 198,016 56,584 254,600
2028 126,515 46,376 172,891
2029 76,787 18,392 95,179
2030 15,940 3,927 19,867
Total 667,352$ 188,045$ 855,397$
EXHIBIT A
100
City of Marina
Notes to the Basic Financial Statements
June 30, 2025
Equipment and related accumulated amortization under the financed purchases are as follows:
Leased Right of Use Assets 2,383,152$
Accumulated Depreciation (1,542,617)
Net Book Value 840,535$
Subscription Based Information Technology Agreements (SBITAs) The City recorded multiple contracts totaling $690,324 as liabilities with interest rates from 1.16-2.38%.
Annual payments range from $32,718 to $76,602. The combined value of the related right of use assets was $1,323,938 with accumulated amortization of $535,110. As of June 30, 2025, the future principal and interest payments for its SBITAs was as follows:
Fiscal Year Ending June 30: Principal Interest Total
2026 244,205$ 13,750$ 257,955$
2027 214,228 9,374 223,602
2028 114,581 5,521 120,102
2029 117,310 2,793 120,103
Total 690,324$ 31,438$ 721,762$
Business-Type Activities
Preston Park Loan
On January 7, 2016, the Preston Park Sustainable Community Non-profit Corporation entered into a loan agreement in the amount of $35,950,000 at 4.15% to finance the costs of acquisition of a leasehold interest in property of Preston Park Apartments. The loan is a full-term interest only loan with the entire principal balance due on February 1, 2026. Interest payments are made through January of 2026 without an early redemption option.
Future debt service payments are as follows:
Fiscal Year Ending June 30: Principal Interest Total
2026 35,950,000$ 1,011,194$ 36,961,194$ Fiduciary Fund Tax Allocation Bonds
Fort Ord Reuse Authority (FORA) Tax Allocation Bonds, Series 2020 In June 2020, the FORA issued $30,705,000 of tax allocation bonds, Series 2020. The proceeds of the Series 2020 bonds will be used to fund building removal costs for various public agencies related to property formerly included in the Fort Ord Military Base, provide funds to satisfy an obligation of the Authority to CalPERS, set-up debt service reserves, set-up administrative accounts, pay insurance premiums related to the bonds and cover bond issuance costs The bonds bear annual interest at 1.151% to
3.307%. Principal and interest is paid semi-annually on March 1st and September 1st. The bonds mature September 1, 2037 in amounts ranging from $1,260,000 to $1,765,000.
Tax Allocation Bonds, Neeson Road
In November 2000, the former RDA issued $700,000 of tax allocation bonds, Series A. The proceeds of the 2000 Series A bonds issued were used fund infrastructure redevelopment activities at the Marina Airport. The bonds bear annual interest at 4.75%. The bonds were issued in fully registered form without coupons in denominations of $5,000. Interest is paid semi-annually, on January 1st and July 1st. Principal
EXHIBIT A
101
City of Marina
Notes to the Basic Financial Statements
June 30, 2025
is paid in annual installments beginning January 1, 2018 and maturing January 1, 2031 in amounts ranging from $10,000 to $45,000.
Tax Allocation Bonds, 2018 Series A (Taxable) and Series B (Tax Exempt) In 2018, the former RDA issued $4,750,000 of tax allocation bonds, Series A (Taxable) and Series B (Tax Exempt). A total of $6,905,000 of Series A bonds were issued and $6,585,000 of Series B bonds. The proceeds of the 2018 Series A bonds issued were used to make payment on a promissory note and agreement, dated August 5, 2008 of the former Marina Redevelopment Agency for the benefit of Marina Community Partners.
The bonds bear annual interest at 5%. The bonds were issued in fully registered form without coupons in denominations of $5,000. Interest is annually, due on September 1st. Principal is paid in annual installments beginning September 1, 2018 and ending September 1, 2038 in amounts ranging from $165,000 to $515,000. The proceeds of the 2018 Series B bonds issued were used to repay a significant portion of the loans from the City of Marina to the Agency. The bonds bear annual interest at 5%. The bonds were issued in fully registered form without coupons in denominations of $5,000. Interest is annually, due on September 1st. Principal is paid in annual installments beginning September 1, 2018 and ending September 1, 2038 in amounts ranging from $165,000 to $515,000.
Tax Allocation Bonds, Series 2020A
In August 2020, the former RDA issued $4,790,000 of tax allocation bonds, Series 2020A. The proceeds of the 2020 Series A bonds issued were used to make payment on the aforementioned promissory note and agreement, dated August 5, 2008 of the former Marina Redevelopment Agency for the benefit of Marina Community Partners. The bonds bear annual interest at 4.00%. The bonds were issued in fully registered form without coupons in denominations of $5,000. Interest is paid semi-annually, on March 1st and September 1st. Principal is paid in annual installments beginning September 1, 2022 and maturing September 1, 2040.
Housing Tax Allocation Bonds, Series 2020B
In August 2020, the former RDA issued $4,950,000 of housing tax allocation bonds, Series 2020B. The proceeds of the 2020 Series B bonds issued were used to make payment on the aforementioned promissory note and agreement, dated August 5, 2008 of the former Marina Redevelopment Agency for the benefit of Marina Community Partners. The bonds bear annual interest at 4.00%. The bonds were issued in fully registered form without coupons in denominations of $5,000. Interest is paid semi- annually, on March 1st and September 1st. Principal is paid in annual installments beginning September 1, 2021 and maturing September 1, 2040.
RDA SA, Series 2023A
In fiscal year 2023, the former RDA issued $3,990,000 of tax allocation bonds, Series 2023A. The proceeds of the bonds issued were issued to (a) make a payment on a Promissory Note and Agreement, dated August 5, 2008, of the former Marina Redevelopment Agency for the benefit of Marina Community Partners, LLC, (b) fund a debt service reserve account for the Bonds, and (c) provide for the costs of issuing the Bonds.. The bonds bear annual interest at 5.00%. The bonds were issued in fully registered form without coupons in denominations of $5,000. Interest is paid semi-annually, on March 1st and September 1st. Principal is paid in annual installments beginning September 1, 2023 and maturing September 1, 2043.
EXHIBIT A
102
City of Marina
Notes to the Basic Financial Statements
June 30, 2025
RDA SA, Housing Series 2023B
In fiscal year 2023, the former RDA issued $9,090,000 of housing tax allocation bonds, Series 2023B.
The proceeds of the bonds were issued to (a) make a payment on a Promissory Note and Agreement, dated August 5, 2008, of the former Marina Redevelopment Agency for the benefit of Marina Community Partners, LLC, (b) fund a debt service reserve account for the Bonds, and (c) provide for the costs of issuing the Bonds. The bonds bear annual interest at 5.00%. The bonds were issued in fully registered form without coupons in denominations of $5,000. Interest is paid semi-annually, on March 1st and September 1st. Principal is paid in annual installments beginning September 1, 2023 and maturing September 1, 2043.
The annual debt service requirements for the Tax Allocation Bonds are as follows:
Fiscal Year Ending June 30: Principal Interest Total
2026 2,595,000$ 2,237,987$ 4,832,987$
2027 3,090,000 2,155,989 5,245,989
2028 3,135,000 2,054,954 5,189,954
2029 3,250,000 1,948,725 5,198,725
2030 3,355,000 1,836,029 5,191,029
2031-2035 16,990,000 7,306,658 24,296,658 2036-2040 14,990,000 4,049,845 19,039,845 2041-2044 9,745,000 981,825 10,726,825 Total 57,150,000$ 22,572,012$ 79,722,012$
The Successor Agency fiduciary funds account for activity of the Successor Agency of the Marina Redevelopment Agency. In 2012, the State of California dissolved Redevelopment Agencies and created Successor Agencies to extinguish debts of the Redevelopment Agencies. The Marina Successor Agency is required by a Development and Disposition Agreement (DDA) to issue debt to repay the Dunes Corporation amounts owed in the DDA. This debt is fully funded by a commitment from the State of California as specified in the Dissolution Act.
NOTE 8 - RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; and natural disasters for which the City obtains insurance coverages.
The City purchases liability, property, errors and omissions, and workers' compensation insurance from the Monterey Bay Area Self Insurance Authority (MBASIA), a risk-sharing program. Under this program, coverage is provided for up to a maximum of $33,500,000 for each general liability claim less the City's deductible of $10,000. Statutory coverage is provided for workers' compensation claims. The City is assessed a contribution to cover claims, operating costs, and claim settlement expenses based upon an actuarially determined rate for each coverage layer pool Additional cash contributions may be assessed on the basis of adverse loss experience. If the events of the year result in a negative risk position, the members' annual assessment may be increased in subsequent years. The City is unable to reasonably estimate the probability of MBASIA ending the year in a negative risk position. Refunds to members may be made if funds are determined to be surplus as a result of an actuarial study. The financial statements for the MBASIA can be found at https://www.mbasia.org/.
The City currently reports liability risk management activities in the general fund. Claims expenditures
EXHIBIT A
103
City of Marina
Notes to the Basic Financial Statements
June 30, 2025
and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. Workers compensation insurance costs are allocated to various departments proportionate to their total payroll. For the year ended June 30, 2025, the City paid a total of $1,694,328 to MBASIA for insurance coverage; $948,112 and $746,216 for liability and workers compensation insurance, respectively and did not receive a rebate from the program. There were no material unpaid and uninsured claims outstanding at the beginning or end of the last two fiscal years.
NOTE 9 - RETIREMENT PLANS
General Information about the Pension Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost- Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS). The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police and fire) and a miscellaneous risk pool (all other.) Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous risk pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68.
Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools. The City sponsors three miscellaneous rate plans. Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan 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 (age 52 for Miscellaneous Plan members if membership date is on or after January 1, 2013) with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 5 years of service. The death benefit is one of the following: the Special Death Benefit (Safety only), the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.
The Plans’ provisions and benefits in effect at June 30, 2025, are summarized as follows:
Tier 1 PEPRA Tier 1 PEPRA
Benefit formula 2% @ 55 2% @ 62 3.0% @ 50 2.7% @ 57
Benefit vesting schedule 5 Years 5 Years 5 Years 5 Years Benefit payments Monthly for Life Monthly for Life Monthly for Life Monthly for Life Retirement age 55 62 50 57
Monthly benefits as a
% of eligible compensation 2% 2% 3% 2.7%
Required employee contribution rates 7% 7.75% 9% 13.75% Required employer contribution rates 12.52% 7.87% 27.32% 13.76% Miscellaneous Safety
EXHIBIT A
104
City of Marina
Notes to the Basic Financial Statements
June 30, 2025
Employees Covered
At June 30, 2025, the following employees were covered by the benefit terms for the Plans:
Miscellaneous Safety Total
Active 53 48 101
Transferred 27 40 67 Separated 27 19 46
Retired 90 89 179
Total 197 196 393
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 the Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rates are 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, 2025, the City’s contributions were as follows:
Employer
Contributions
Miscellaneous 1,177,772$
Safety 2,967,310
Total Employer Contributions 4,145,082$
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2025, the City reported a net pension liability for its proportionate share of the net pension liabilities as follows:
Miscellaneous
Safety
Total
Proportionate Share of
Net Pension
Liability/(Asset)
$ 8,740,367
20,531,221
$ 29,271,588
The City’s net pension liability for the Plans is measured as the proportionate share of the net pension liability. The net pension liability of the Plans are measured as of June 30, 2024, and the total pension liability for the Plans used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 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.
EXHIBIT A
105
City of Marina
Notes to the Basic Financial Statements
June 30, 2025
The City’s proportionate share of the net pension liability for the Plans as of June 30, 2024 and 2024 was as follows:
Miscellaneous Safety Combined Plans
Proportion - June 30, 2023 0.17541% 0.27856% 0.23721%
Proportion - June 30, 2024 0.18071% 0.28160% 0.24137%
Change - Increase/(Decrease) -0.00530% -0.00304% -0.00416% For the year ended June 30, 2025, the City recognized pension expense of $6,264,675.
At June 30, 2025 , the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions 224,646$ -$
Differences between Expected and Actual Experience 755,685 29,486 Differences between Projected and Actual Investment Earnings 503,172 - Differences between Employer's Contributions and
Proportionate Share of Contributions 69,881 96,972 Change in Employer's Proportion 2,549 18,343 Pension Contributions Made Subsequent to Measurement Date 1,177,772 - Total 2,733,705$ 144,801$
Miscellaneous
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Changes of Assumptions 505,847$ -$
Differences between Expected and Actual Experience 1,675,530 54,479 Differences between Projected and Actual Investment Earnings 992,386 - Differences between Employer's Contributions and
Proportionate Share of Contributions 433,612 177,169 Change in Employer's Proportion 354,350 20,956 Pension Contributions Made Subsequent to Measurement Date 2,967,310 - Total 6,929,035$ 252,604$
Safety
The City reported $4,145,082 as deferred outflows of resources related to contributions subsequent to the measurement date that will be recognized as a reduction of the net pension liability in the year ended June 30, 2026.
EXHIBIT A
106
City of Marina
Notes to the Basic Financial Statements
June 30, 2025
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Miscellaneous Safety Total
811,093$ 1,133,609$ 1,944,702$
1,132,896 2,467,574 3,600,470
59 87,003 87,062
(172,431) (339,550) (511,981)
1,771,617$ 3,348,636$ 5,120,253$
2025
Total
2026
2027
2028
Deferred Outflows/(Inflows) of
ResourcesFiscal Year Ending
June 30:
Actuarial Assumptions
The total pension liabilities in the June 30, 2023 actuarial valuations were determined using the following actuarial assumptions:
Valuation Date June 30, 2023
Measurement Date June 30, 2023
Actuarial Cost Method Entry-Age
Normal Cost
Method
Actuarial Assumptions:
Discount Rate 6.90%
Inflation 2.30%
Payroll Growth 2.80%
Projected Salary Increase (1)
Investment Rate of Return 6.8% (2)
Mortality (3)
(1) Varies by entry age and service
(2) Net of pension plan investment expenses, including inflation (3) Derived using CalPERS' membership data for all funds Discount Rate
The discount rate used to measure the total pension liability was 6.9% for the Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the Plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 6.9 percent discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 6.9 percent will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.
The long-term expected rate of return on pension plan investments was determined using a building block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.
EXHIBIT A
107
City of Marina
Notes to the Basic Financial Statements
June 30, 2025
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound 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 fund. 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 equivalent 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. These rates of return are net of administrative expenses.
Assumed Long-Term
Asset Expected Real
Asset Class (a) Allocation Return (1)(2)
Global Equity Cap Weighted 30.00% 4.54%
Global Equity NonCap Weighted 12.00% 3.84%
Private Equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed Securities 5.00% 0.50%
Investment Grade Corporates 10.00% 1.56%
High Yield 5.00% 2.27%
Emerging Market Debt 5.00% 2.48%
Private Debt 5.00% 3.57%
Real Assets 15.00% 3.21%
Leverage -5.00% -0.59%
Total 100.00%
(1) An expected inflation of 2.3% used for this period. (2) Figures are based on the 2021-22 Asset Liability Study.
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 the Plans, calculated using the discount rate for the Plans, 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:
Miscellaneous Safety
1% Decrease 5.90% 5.90%
Net Pension Liability 13,320,594$ 31,343,626$
Current 6.90% 6.90%
Net Pension Liability 8,740,367$ 20,531,221
1% Increase 7.90% 7.90%
Net Pension Liability 4,970,166$ 11,688,194$
EXHIBIT A
108
City of Marina
Notes to the Basic Financial Statements
June 30, 2025
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 10 - OTHER POSTEMPLOYMENT BENEFITS PLAN
Plan Description
The City of Marina participates in the California Public Employees Retirement System (CalPERS), a cost-sharing multiple employer public employee defined benefit pension plan. CalPERS provides post- employment medical insurance benefits to retirees and their spouses who meet plan eligibility requirements in accordance with their labor agreement. The City provides health care benefits for all retired employees based on retirement age of 50 with 5 years of service. Retirees can enroll in any of the available CalPERS medical plans and the benefits continue for the life of the retiree and surviving spouse.
The City contributes the minimum amount provided under Government Code Section 22825 of the Public Employees Medical and Hospital Care Act. Retirees must pay any premium amounts in excess of the City's contribution. For each bargaining unit, the minimum amount the City contributes is pro-rated over the 20-year period starting from that unit's CalPERS coverage.
The City has authority to establish and amend the Plan's benefit terms and financing requirements to the City Council. No assets are accumulated in a trust that meets all of the criteria in GASB statement No. 75 Paragraph 4. There are no separate financial statements issued for the OPEB plan.
Employees Covered by Benefit Terms
At June 30, 2025, the benefit terms covered the following employees:
Active employees 68
Inactive employees 21
Dependents of Retirees 5
Total covered 94
Contributions
The City makes contributions based on a pay-as-you-go basis as approved by the authority of the City Council. Total benefit payments included in the measurement period were $ 87,574 while actual contributions for the fiscal year were $ 95,320. The City’s contributions were .94 % of covered employee payroll during the fiscal year ended June 30, 2025. Employees are not required to contribute to the plan. There have been no assets accumulated in a trust to provide for the benefits of this plan.
EXHIBIT A
109
City of Marina
Notes to the Basic Financial Statements
June 30, 2025
Actuarial Assumptions
The following summarized the actuarial assumptions for the OPEB plan included in this fiscal year:
Valuation Date: June 30, 2023
Measurement Date: June 30, 2024
Actuarial Cost Method: Entry-Age Normal Cost Method
Amortization Period: 20 years
Asset Valuation Method:
Actuarial Assumptions:
Discount Rate 3.97%
Inflation 2.50%
Salary Increases 3.25%
Healthcare Trend Rate
Mortality
Retirement:
Hired before January 1, 2013
Hired on or after January 1, 2013:
**Discount rate increased in 2023 from 3.86% to 3.97%
2% @55 Rates for Miscellaneous Employees
3% @50 for Police and Fire
2% @62 for Miscellaneous Employees.
2.7% @57 for Police and Fire.
Level percentage of payroll, closed
CalPERS 2021 Experience Study
4% to 7.84%
Discount Rate
The discount rate was based on the Bond Buyer 20-bond General Obligation Index.
Total OPEB Liability
The City's Total OPEB liability was measured as of June 30, 2024 (measurement date) and was determined by an actuarial valuation as of June 30, 2034 (valuation date) for the fiscal year ended June 30, 2025 (reporting date).
Changes in the Total OPEB Liability
The following summarizes the changes in the Total OPEB liability during the year ended June 30, 2025:
Fiscal Year Ended June 30, 2025
Total OPEB
Liability
Balance at June 30, 2024 3,556,826$
Service cost 267,364
Interest in Total OPEB Liability 145,939
Balance of changes in assumptions (65,044)
Benefit payments (87,574)
Net changes 260,685
Balance at June 30, 2025 3,817,511$
The City’s plan is nonfunded, meaning there have not been assets placed into an irrevocable trust, therefore the plan fiduciary net position is zero.
EXHIBIT A
110
City of Marina
Notes to the Basic Financial Statements
June 30, 2025
Deferred Inflows and Outflows of Resources
At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred
Outflows of
Resources
Deferred
Inflows of
Resources
Difference between actual and expected experience 116,688$ 1,939,872$ Change in assumptions 729,518 1,486,732
OPEB contribution subsequent to measurement date 95,320 - Totals 941,526$ 3,426,604$
Of the total amount reported as deferred outflows of resources related to OPEB, $95,320 resulting from City contributions subsequent to the measurement date and before the end of the fiscal year will be included as a reduction of the net OPEB liability in the year ended June 30, 2026.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:
Year Ended June 30,
2026 (474,272)$
2027 (344,455)
2028 (337,340)
2029 (411,249)
2030 (491,358)
Thereafter (521,724)
Total (2,580,398)$
OPEB Expense
The following summarizes the OPEB expense by source during the year ended June 30, 2025:
Service cost 267,364$
Interest in TOL 145,939
Difference between actual and expected experience (291,865) Change in assumptions (246,008)
OPEB Expense (124,570)$
EXHIBIT A
111
City of Marina
Notes to the Basic Financial Statements
June 30, 2025
The following summarizes changes in the Total OPEB liability as reconciled to OPEB expense during the year ended June 30, 2025:
3,817,511$
(3,556,826)
260,685
Changes in deferred outflows 224,530
Changes in deferred inflows (705,105)
Employer contributions and implicit subsidy 95,320
OPEB Expense (124,570)$
Total OPEB liability ending
Total OPEB liability beginning
Change in total OPEB liability
Sensitivity to Changes in the Discount Rate
The Total OPEB liability of the City, as well as what the City's Total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher, is as follows:
(1% Decrease ) 3.97% (1% Increase )
Total OPEB Liability 4,518,043$ 3,817,511$ 3,261,995$ Municipal Bond Rate
Sensitivity to Changes in the Healthcare Cost Trend Rates The Total OPEB liability of the City, as well as what the City's Total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower or one percentage point higher than current healthcare cost trend rates, is as follows:
(1% Decrease ) 4% to 7.84% (1% Increase )
Total OPEB Liability 3,173,100$ 3,817,511$ 4,660,402$ Trend Rate
NOTE 11 - COMMITMENTS AND CONTINGENCIES
Lawsuits
The City is subject to certain matters of litigation that may arise in the normal course of conducting City business. City management believes, based upon consultation with legal counsel, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize.
Federal and State Grant Programs
The City participates in Federal and State grant programs. These programs are audited by the City's independent accountants if required by and in accordance with the provisions of the Uniform Guidance and applicable State requirements. Expenditures which may be disallowed, if any, by the granting agencies, cannot be determined at this time. The City expects such amounts, if any, to be immaterial.
Deferred Compensation
The City offers its employees two deferred compensation plans created in accordance with California
EXHIBIT A
112
City of Marina
Notes to the Basic Financial Statements
June 30, 2025
Code Section 53212 and Internal Revenue Code Section 457 under which employees can defer a portion of their salary until future years. The deferred compensation plan money is a deduction from the employees' salary and is invested with independent retirement trustees. The trustees hold the amounts deferred and any related income on behalf of employees. The assets and liabilities of these plans have been excluded from the accompanying financial statements.
Commitments
The City had the following capital commitments as of June 30, 2025:
Capital Commitments Amount
Street Improvements (1) 9,446,577$
Facility Improvements 791,632
Park Improvements 10,631,498
Capital Improvements 2,560,193
General Government 3,271,637
Total 26,701,536$
(1) Includes a $7.4 million remaining contract balance that is funded through grant reimbursements.
NOTE 12 - SUBSEQUENT EVENTS
The City had the following events that occurred subsequent to year end:
General Fund/FORA Dissolution Fund
Recreation and Aquatics Sports Center
The City approved construction of a new $41.7 million Recreation and Aquatics Sports Center. T he estimated 75,000 square foot facility is planned to provide year-round health, fitness, and aquatics programs; gymnasiums space, community meeting rooms, and supporting amenities. The funding for this project will come from a $26.2 million contribution from the FOR A Dissolution Fund, $3.5 million in facility impact fees, $150,000 from the General Fund, and an $11.8 million loan from the General Fund.
The Fiscal Year 25/26 Adopted Budget included an $11.8 million commitment of the unallocated General Fund balance towards this effort, with a transfer of funds to the Recreation and Aquatics Center project taking place in Fiscal Year 26/27. It is anticipated that the interfund loan will be repaid over a seven-year period, commencing on July 1, 2027. Interest will be paid at a rate equivalent to the interest earnings on the City’s investment portfolio, with FOR A Dissolution Fund fees serving as the repayment source.
Preston Park Fund
Preston Park Loan
On January 7, 2016, the Preston Park Sustainable Community Non-Profit Corporation entered into a loan agreement in the amount of $35,950,000. The original loan was used to finance the acquisition of the Preston Park apartments. This obligation was a full-term interest only loan with the entire principal due on February 1, 2026. O n October 21, 2025, the City Council approved issuing 10-year bonds to refinance $29,450,000, while applying $6.5 million in reserves towards the principal. T he proposed bonds will include principal and interest payments, with the final interest rate to be determined based on the public offering.
EXHIBIT A
113
This page is intentionally blank
EXHIBIT A
114
REQUIRED SUPPLEMENTARY INFORMATION
EXHIBIT A
115
This page is intentionally blank
EXHIBIT A
116
City of Marina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
General Fund
For the Year Ended June 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes and assessments 28,172,159$ 30,564,000$ 31,691,708$ 1,127,708$ Licenses, permits and fees 885,200 813,000 909,281 96,281 Fines and forfeitures 64,600 85,100 111,925 26,825 Intergovernmental 312,700 1,159,200 734,868 (424,332) Charges for services 4,186,350 4,545,000 5,002,581 457,581 Investment earnings 650,000 1,978,000 4,650,253 2,672,253 Local contributions 16,000 93,265 113,079 19,814 Other revenue 57,600 82,001 228,841 146,840 Total Revenues 34,344,609 39,319,566 43,442,536 4,122,970
EXPENDITURES
Current:
General government 10,655,460 10,248,650 10,154,063 94,587 Public safety 14,897,351 15,549,178 15,339,985 209,193 Public works 2,696,851 2,686,001 2,698,856 (12,855) Economic & community development 3,640,109 4,488,362 4,114,115 374,247 Recreation & cultural services 1,402,201 1,574,299 1,576,600 (2,301) Capital outlay 1,575,199 3,521,701 2,578,274 943,427 Debt service
Principal 451,440 450,000 505,505 (55,505) Interest - - 64,287 (64,287) Total Expenditures 35,318,611 38,518,191 37,031,685 1,486,506 Excess (Deficiency) of Revenues over Expenditures (974,002) 801,375 6,410,851 5,609,476
OTHER FINANCING SOURCES (USES)
Transfers in 133,337 429,002 429,002 - Transfers out (1,706,898) (2,658,768) (2,658,769) (1) Leases and subscriptions - - 1,044,728 1,044,728 Total Other Financing Sources (Uses) (1,573,561) (2,229,766) (1,185,039) 1,044,727 Net Change in Fund Balance (2,547,563) (1,428,391) 5,225,812 6,654,203 Fund Balance Beginning 47,193,974 47,193,974 47,193,974 - Fund Balance Ending 44,646,411$ 45,765,583$ 52,419,786$ 6,654,203$ The City adopts a budget annually for all governmental fund types. This budget is effective July 1 for the ensuing fiscal year.
From the effective date of the budget, which is adopted at the fund level, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The legal level of budgetary control is the fund level. The City Council may amend the budget by resolution during the fiscal year. The City Manager has the authority to make adjustments to the operating budget between functions within the same fund. Transfers of operating budgets between funds, use of unappropriated fund balances, and significant changes in capital improvement project budgets require the approval of the City Council.
Expenditures in excess of appropriations were covered by budgets in other objects/functions or beginning fund balance.
EXHIBIT A
117
City of Marina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
FORA Dissolution Fund
For the Year Ended June 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Licenses, permits and fees 1,000,000$ 7,100,000$ 7,938,965$ 838,965$ Investment earnings 125,000 842,000 1,030,403 188,403 Other revenue - - 413 413 Total Revenues 1,125,000 7,942,000 8,969,781 1,027,781
EXPENDITURES
Current:
Economic & community development 2,010,000 1,810,000 1,858,589 (48,589) Total Expenditures 2,010,000 1,810,000 1,858,589 (48,589) Excess (Deficiency) of Revenues over Expenditures (885,000) 6,132,000 7,111,192 979,192
OTHER FINANCING SOURCES (USES)
Transfers out (2,600,000) (3,950,000) (3,950,000) - Total Other Financing Sources (Uses) (2,600,000) (3,950,000) (3,950,000) - Net Change in Fund Balance (3,485,000) 2,182,000 3,161,192 979,192 Fund Balance Beginning 20,068,663 20,068,663 20,068,663 - Fund Balance Ending 16,583,663$ 22,250,663$ 23,229,855$ 979,192$
EXHIBIT A
118
City of Marina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Impact Fee Fund
For the Year Ended June 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Charges for services 3,512,000$ 2,977,000$ 4,383,824$ 1,406,824$ Investment earnings 100,000 1,006,000 1,046,084 40,084 Total Revenues 3,612,000 3,983,000 5,429,908 1,446,908
OTHER FINANCING SOURCES (USES)
Transfers in - 918 918 - Transfers out (3,200,000) (5,172,000) (5,172,000) - Total Other Financing Sources (Uses) (3,200,000) (5,171,082) (5,171,082) - Net Change in Fund Balance 412,000 (1,188,082) 258,826 1,446,908 Fund Balance Beginning 23,356,691 23,356,691 23,356,691 - Fund Balance Ending 23,768,691$ 22,168,609$ 23,615,517$ 1,446,908$
EXHIBIT A
119
City of Marina
Schedule of Pension Contributions
June 30, 2025
(Last Ten Years)
Miscellaneous and Safety Plan
Fiscal Year Ended 2016 2017 2018 2019 2020
Contractually Required Contributions 2,069,732$ 2,385,218$ 2,524,388$ 2,050,095$ 2,739,136$ Contributions in Relation to Contractually
Required Contributions 2,069,732 2,385,218 2,524,388 2,050,095 2,739,136 Contribution Deficiency (Excess) -$ -$ -$ -$ -$ Covered Payroll 6,987,956$ 7,070,353$ 7,637,741$ 7,411,028$ 8,281,259$ Contributions as a % of Covered Payroll 29.62% 33.74% 33.05% 27.66% 33.08% Miscellaneous and Safety Plan
Fiscal Year Ended 2021 2022 2023 2024 2025
Contractually Required Contributions 2,885,118$ 3,140,753$ 3,374,756$ 3,638,057$ 4,145,082$ Contributions in Relation to Contractually
Required Contributions 2,885,118 3,140,753 3,374,756 3,638,057 4,145,082 Contribution Deficiency (Excess) -$ -$ -$ -$ -$ Covered Payroll 9,003,748$ 9,258,676$ 9,271,237$ 11,406,004$ 12,416,542$ Contributions as a % of Covered Payroll 32.04% 33.92% 36.40% 31.90% 33.38% Notes to Schedule:
Valuation Date: June 30, 2023
Assumptions Used: Entry Age Method used for Actuarial Cost Method Level Percentage of Payroll and Direct Rate Smoothing
Remaining Amortization Period no more than 29 years
Inflation Assumed at 2.30%
Investment Rate of Returns set at 6.8%
The CalPERS discount rate was increased from 7.50% to 7.65% in FY2016, to 7.15% in FY2018, and then decreased to 6.80% in FY2023.
The CalPERS mortality assumptions was adjusted in fiscal year 2023.
The mortality table was developed based on CalPERS-specific data. The rates incorporate Generational Mortality to capture ongoing morality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details, please refer to the 2021 experience study report that can be found on the CalPERS website.
EXHIBIT A
120
City of Marina
Schedule of Proportionate Share of Net Pension Liability June 30, 2025
(Last Ten Years)
Miscellaneous and Safety Plan
Plan Measurement Date 2015 2016 2017 2018 2019
Fiscal Year Ended 2016 2017 2018 2019 2020
Proportion of Net Pension
Liability (Safety and Misc) 0.17995% 0.18715% 0.19055% 0.19679% 0.20287% Proportionate Share of
Net Pension Liability 12,351,371$ 16,193,904$ 18,897,109$ 18,963,346$ 20,787,955$ Covered Payroll 7,233,320$ 6,987,956$ 7,070,353$ 7,637,741$ 7,411,028$ Proportionate Share of NPL
as a % of Covered Payroll 170.76% 231.74% 267.27% 248.28% 280.50% Plan's Fiduciary Net Position
as a % of the TPL 77.38% 75.77% 74.66% 76.15% 75.40%
Miscellaneous and Safety Plan
Plan Measurement Date 2020 2021 2022 2023 2024
Fiscal Year Ended 2021 2022 2023 2024 2025
Proportion of Net Pension
Liability (Safety and Misc) 0.21094% 0.24609% 0.23573% 0.23721% 0.24137% Proportionate Share of
Net Pension Liability 22,951,344$ 13,309,290$ 27,228,646$ 29,593,077$ 29,271,588$ Covered Payroll 8,281,259$ 9,003,748$ 9,258,676$ 9,271,237$ 11,406,004$ Proportionate Share of NPL
as a % of Covered Payroll 277.15% 147.82% 294.09% 319.19% 256.63% Plan's Fiduciary Net Position
as a % of the TPL 74.18% 85.74% 76.68% 76.21% 78.08%
The CalPERS discount rate was increased from 7.50% to 7.65% in FY2016, to 7.15% in FY2018, and then decreased to 6.80% in FY2023.
The CalPERS mortality assumptions was adjusted in fiscal year 2023.
EXHIBIT A
121
City of Marina
Schedule of Changes in Total OPEB Liability
June 30, 2025
(Last Ten Years)
Fiscal Year Ended 2018 2019 2020 2021
Total OPEB liability
Service cost 271,072$ 200,224$ 195,708$ 264,281$ Interest 157,957 153,199 168,281 177,174 Differences exp. and act. exp. (4,684) (27,347) 371,094 (5,518) Changes of assumptions (1,590,885) (200,100) (14,726) 1,466,447 Benefit payments (22,911) (28,444) (76,872) (73,360) Net change in Total OPEB Liability (1,189,451) 97,532 643,485 1,829,024 Total OPEB Liability - beginning 5,282,625 4,093,174 4,190,706 4,834,191 Total OPEB Liability - ending 4,093,174$ 4,190,706$ 4,834,191$ 6,663,215$ Covered Employee Payroll 7,387,760$ 7,635,928$ 7,725,967$ 8,315,617$ Total OPEB liability as a %
of covered employee payroll 55.40% 54.88% 62.57% 80.13% Fiscal Year Ended 2022 2023 2024 2025
Total OPEB liability
Service cost 394,958$ 503,081$ 347,235$ 267,364$ Interest 155,100 143,021 198,892 145,939 Changes of benefit terms - - - - Differences exp. and act. exp. (1,155,928) - (1,704,374) - Changes of assumptions 190,330 (1,619,123) (274,622) (65,044) Benefit payments (80,621) (98,138) (106,200) (87,574) Implicit subsidy fulfilled - - - - Net change in Total OPEB Liability (496,161) (1,071,159) (1,539,069) 260,685 Total OPEB Liability - beginning 6,663,215 6,167,054 5,095,895 3,556,826 Total OPEB Liability - ending 6,167,054$ 5,095,895$ 3,556,826$ 3,817,511$ Covered Employee Payroll 9,361,845$ 9,666,105$ 10,166,744$ 11,472,200$ Net OPEB liability as a percentage
of covered employee payroll 65.87% 52.72% 34.98% 33.28% Total OPEB liability as a %
of covered employee payroll 65.87% 52.72% 34.98% 33.28% Other Notes
There were no changes in benefit terms.
There were no changes in trend rates.
GASB 75 requires a schedule of contributions for the last ten fiscal years, or for as many years as are available if less than ten years are available. GASB 75 was adopted as of June 30, 2018.
There were no assets accumulated in a trust to pay benefits related to this plan.
Discount rates decreased from 3.87% to 3.5% in 2020, 2.21% in 2021, 2.16% in 2022, and then increased to 3.69% in 2023, 3.86% in 2024 and 3.97% in 2025.
EXHIBIT A
122
SUPPLEMENTARY INFORMATION
EXHIBIT A
123
This page is intentionally blank
EXHIBIT A
124
City of Marina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
City Capital Projects Fund
For the Year Ended June 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Intergovernmental -$ 12,296,460$ 11,145,890$ (1,150,570)$ Charges for services 50,000 - 106,029 106,029 Local contributions - 275,000 275,000 - Total Revenues 50,000 12,571,460 11,526,919 (1,044,541)
EXPENDITURES
Capital outlay 47,140,017 12,652,753 22,542,404 (9,889,651) Debt service
Principal - - 72,112 (72,112) Interest and fiscal charges - - 4,490 (4,490) Total Expenditures 47,140,017 12,652,753 22,619,006 (9,966,253) Excess (Deficiency) of Revenues over Expenditures (47,090,017) (81,293) (11,092,087) (11,010,794)
OTHER FINANCING SOURCES (USES)
Transfers in 6,425,000 11,083,235 10,698,869 (384,366) Transfers out - (680,030) 295,665 975,695 Total Other Financing Sources (Uses) 6,425,000 10,403,205 10,994,534 591,329 Net Change in Fund Balance (40,665,017) 10,321,912 (97,553) (10,419,465) Fund Balance Beginning 46,311,009 46,311,009 46,311,009 - Fund Balance Ending 5,645,992$ 56,632,921$ 46,213,456$ (10,419,465)$
EXHIBIT A
125
City of Marina
Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual (GAAP Basis)
Abrams B Debt Service Fund
For the Year Ended June 30, 2025
Variance with
Budgeted Amounts Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Investment earnings 9,000$ 20,000$ 21,271$ 1,271$ Other revenue 688,000 755,000 822,461 67,461 Total Revenues 697,000 775,000 843,732 68,732
EXPENDITURES
Debt service
Principal 480,000 490,000 490,000 - Interest 270,000 265,000 258,888 6,112 Total Expenditures 750,000 755,000 748,888 6,112 Net Change in Fund Balance (53,000) 20,000 94,844 74,844 Fund Balance Beginning 450,371 450,371 450,371 - Fund Balance Ending 397,371$ 470,371$ 545,215$ 74,844$
EXHIBIT A
126
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
CDBG: Accounts for various U.S. Housing and Urban Development Department, Community Development Block Grant, non-housing programs, including grant revenues, grant expenditures and program income.
CDBG Housing: Accounts for various U.S. Housing and Urban Development Department, Community Development Block Grant, housing programs.
Public Education Government: Accounts for franchise tax fees collected with cable television bills.
Fees collected through the cable provider finance the operating and capital costs of broadcasting City Council and other meetings of public interest over a dedicated TV channel.
Gas Tax Streets: Accounts for State gas tax revenues and occasional City cash and staffing contributions, and the costs of allowable streets maintenance and repair projects.
Road Maintenance and Rehabilitation (SB1): Accounts for funds received and expended specific to road maintenance and repairs.
Transportation Safety and Investment: Accounts for funds received and expended from sales tax Measure X to invest in roads throughout the County.
National Parks Recreation Services: Accounts for revenues generated by land and antenna rentals, and from various recreation activities conducted on the site, as well as costs for facilities improvements, repairs, maintenance, staffing and support costs related to recreational activities. All activities are conducted on property granted to the City upon Fort Ord Army Base Closure. Use of these resources is limited to recreation activities conducted on these premises.
Seabreeze Assessment District: Accounts for assessments collected from property owners within the boundaries of the District, and related landscape maintenance costs.
Monterey Bay Estates Assessment District: Accounts for assessments collected from property owners within the boundaries of the District, and related landscape maintenance costs.
Cypress Cove II Assessment District: Accounts for assessments collected from property owners within the boundaries of the District, and related landscape maintenance costs.
CFD 2007-2 Locke-Paddon: A Community Facilities District (CFD) accounts for annual assessments against property owners within the boundaries of the District and related improvement and maintenance costs.
CFD 2015-1 Dunes: A Community Facilities Districts (CFD) accounts for annual assessments against property owners within the boundaries of the District and related improvement and maintenance costs.
Housing Assistance Fund: Accounts for funds received and expended as part of Below Market Rate Housing Implementation Agreements. Use of these resources is limited to city-wide homebuyer assistance as well as administrative costs associated with the establishment and implementation of a homebuyer assistance program.
EXHIBIT A
127
NONMAJOR GOVERNMENTAL FUNDS
Debt Service Funds
2015 GO Refunding Bonds: Accounts for tax revenues that provide resources to make bond principal and interest payments, and to pay costs of administering the 2015 general obligation refunding bonds, which refinanced the 2005 library construction general obligation bonds.
Marina Landing Bonds: Accounted for special assessment revenues, bond principal and interest payments, and debt administration costs. Bonds were originally issued to finance certain infrastructure improvements to properties in the Marina Landing Assessment. All bonds have been liquidated but the fund has a residual cash balance which will be disbursed and the fund deactivated when appropriate.
Marina Greens Bonds: Accounted for special assessment revenues, bond principal and interest payments, and debt administration costs. Bonds were originally issued to finance certain infrastructure improvements to properties in the Marina Greens Assessment District. All bonds have been liquidated but the fund has a residual cash balance which will be disbursed and the fund deactivated when appropriate.
Measure X Certificates of Participation Debt Service Fund: Accounts for proceeds and debt service related to Certificates of Participation issued for street improvements. Debt will be repaid using Measure X tax revenue received by the City.
Capital Projects Funds
Airport: This fund accounts for federal and state grant revenues, city-match and other resources that are dedicated and/or restricted to creating, expanding or otherwise improving infrastructure and other long- lived assets at the Marina Municipal Airport.
Park Facilities: Over a period of time, this fund has accounted for residential park development taxes, park facility improvement fees, park facility use fees, mitigation fees for new development, parks in-lieu fees, grant revenues, private and public donations, antenna rents and other resources dedicated or restricted to the acquisition, construction and/or improvement of park and recreational facilities.
Resources in this fund were expended for their required purposes, and since implementation of Parks Impact Fees (accounted for in the Impact Fee Fund) the fund has become inactive. The small remaining cash balance will be transferred to the appropriate successor fund.
EXHIBIT A
128
City of Marina
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
Public
CDBG Education Gas
CDBG Housing Government Tax
Fund Fund Fund Fund
ASSETS
Cash and investments 395,368$ 1,436$ 118,653$ 1,526$ Restricted cash and investments - - - - Accounts receivable - - 23,181 52,308 Interest receivable 2,434 6 - - Notes receivable 491,642 60,000 - - Total assets 889,444$ 61,442$ 141,834$ 53,834$
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable -$ -$ 96,422$ 30,083$ Deposits and other liabilities - - - - Advances from other funds - - - - Total liabilities - - 96,422 30,083 Deferred Inflows of Resources:
Unavailable revenues 491,642 60,000 - - Fund Balances:
Restricted:
Transportation and streets - - - - Special districts - - - 23,751 Housing - - - - Community development 397,802 1,442 - - Recreation - - - - Capital projects - - - - Debt service - - - - Committed
Public education - - 45,412 - Unassigned - - - - Total fund balances 397,802 1,442 45,412 23,751 Total liabilities, deferred inflows of
resources and fund balances 889,444$ 61,442$ 141,834$ 53,834$ Cont'd
Special Revenue Funds
EXHIBIT A
129
City of Marina
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Restricted cash and investments
Accounts receivable
Interest receivable
Notes receivable
Total assets
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable
Deposits and other liabilities
Advances from other funds
Total liabilities
Deferred Inflows of Resources:
Unavailable revenues
Fund Balances:
Restricted:
Transportation and streets
Special districts
Housing
Community development
Recreation
Capital projects
Debt service
Committed
Public education
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
National
Road Transportation Parks Seabreeze
Maintenance & Safety & Recreation Assessment
Rehabilitation Investment Services District
Fund Fund Fund Fund
764,267$ 652,337$ 520,654$ -$ - - - - 51,906 535,969 1,378 - 4,403 2,027 3,024 - - - - - 820,576$ 1,190,333$ 525,056$ -$ -$ -$ -$ 2,815$ - - 6,400 - - - - 690 - - 6,400 3,505 - - - - 820,576 1,190,333 - - - - - - - - - - - - - - - - 518,656 - - - - - - - - - - - - - - - - (3,505) 820,576 1,190,333 518,656 (3,505) 820,576$ 1,190,333$ 525,056$ -$ Cont'd
Special Revenue Funds
EXHIBIT A
130
City of Marina
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Restricted cash and investments
Accounts receivable
Interest receivable
Notes receivable
Total assets
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable
Deposits and other liabilities
Advances from other funds
Total liabilities
Deferred Inflows of Resources:
Unavailable revenues
Fund Balances:
Restricted:
Transportation and streets
Special districts
Housing
Community development
Recreation
Capital projects
Debt service
Committed
Public education
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Monterey Cypress CFD
Bay Estates Cove II 2007-2 CFD
Assessment Assessment Locke- 2015-1 Housing
District District Paddon Dunes Assistance
Fund Fund Fund Fund Fund
16,945$ 2,286$ 34,976$ 1,885,061$ 1,783,101$ - - - - - - - - - - 101 - 171 11,625 11,032 - - - - - 17,046$ 2,286$ 35,147$ 1,896,686$ 1,794,133$ 4,684$ 4,208$ 3,006$ 3,575$ -$ - - - - - - - - - - 4,684 4,208 3,006 3,575 - - - - - - - - - - - 12,362 - 32,141 1,893,111 - - - - - 1,794,133 - - - - - - - - - - - - - - - - - - - - - - - - - - (1,922) - - - 12,362 (1,922) 32,141 1,893,111 1,794,133 17,046$ 2,286$ 35,147$ 1,896,686$ 1,794,133$ Cont'd
Special Revenue Funds
EXHIBIT A
131
City of Marina
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Restricted cash and investments
Accounts receivable
Interest receivable
Notes receivable
Total assets
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable
Deposits and other liabilities
Advances from other funds
Total liabilities
Deferred Inflows of Resources:
Unavailable revenues
Fund Balances:
Restricted:
Transportation and streets
Special districts
Housing
Community development
Recreation
Capital projects
Debt service
Committed
Public education
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
2015 Marina Marina Measure X
GO Landing Greens Certificate of
Refunding Improvement Improvement Participation
Bonds Bonds Bonds Debt Service
Fund Fund Fund Fund
4,339$ -$ -$ 7,516$ 639,206 7,546 1,824 - - - - - 3,568 - - - - - - - 647,113$ 7,546$ 1,824$ 7,516$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7,516 647,113 7,546 1,824 - - - - - - - - - 647,113 7,546 1,824 7,516 647,113$ 7,546$ 1,824$ 7,516$ Cont'd
Debt Service Funds
EXHIBIT A
132
City of Marina
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2025
ASSETS
Cash and investments
Restricted cash and investments
Accounts receivable
Interest receivable
Notes receivable
Total assets
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable
Deposits and other liabilities
Advances from other funds
Total liabilities
Deferred Inflows of Resources:
Unavailable revenues
Fund Balances:
Restricted:
Transportation and streets
Special districts
Housing
Community development
Recreation
Capital projects
Debt service
Committed
Public education
Unassigned
Total fund balances
Total liabilities, deferred inflows of
resources and fund balances
Measure X Airport Total
Road and Capital Park Nonmajor
Transportation Projects Facilities Governmental
Fund Fund Fund Funds
10,210,501$ 2,740,703$ -$ 19,139,669$ 9,170,558 - - 9,819,134 - - - 664,742 62,764 - - 101,155 - - - 551,642 19,443,823$ 2,740,703$ -$ 30,276,342$ 3,549,418$ 41,292$ -$ 3,735,503$ - - - 6,400 - - - 690 3,549,418 41,292 - 3,742,593 - - - 551,642 - - - 2,010,909 - - - 1,961,365 - - - 1,794,133 - - - 399,244 - - - 518,656 15,894,405 2,699,411 - 18,601,332 - - - 656,483 - - - 45,412 - - - (5,427) 15,894,405 2,699,411 - 25,982,107 19,443,823$ 2,740,703$ -$ 30,276,342$ Concluded
Capital Projects Funds
EXHIBIT A
133
City of Marina
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Public
CDBG Education Gas
CDBG Housing Government Tax
Fund Fund Fund Fund
REVENUES
Taxes and assessments -$ -$ 96,425$ 616,344$ Intergovernmental - - - - Charges for services - - - - Investment earnings 18,452 483 - (241) Total Revenues 18,452 483 96,425 616,103
EXPENDITURES
Current:
General government - - - - Public works - - - 575,824 Economic & community development - - 96,424 - Recreation & cultural services - - - - Capital outlay - - - - Debt service
Principal - - - - Interest - - - - Total Expenditures - - 96,424 575,824 Excess (Deficiency) of Revenues over Expenditures 18,452 483 1 40,279
OTHER FINANCING SOURCES (USES)
Transfers in - - - - Transfers out - - - (62,400) Total Other Financing Sources (Uses) - - - (62,400) Net Change in Fund Balances 18,452 483 1 (22,121) Fund Balances Beginning 379,350 959 45,411 45,872 Fund Balances Ending 397,802$ 1,442$ 45,412$ 23,751$ Cont'd
Special Revenue Funds
EXHIBIT A
134
City of Marina
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Total Revenues
EXPENDITURES
Current:
General government
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
National
Road Transportation Parks Seabreeze
Maintenance & Safety & Recreation Assessment
Rehabilitation Investment Services District
Fund Fund Fund Fund
615,406$ 1,093,808$ -$ 6,733$ - - - - - - 81,126 - 24,337 6,808 22,753 8 639,743 1,100,616 103,879 6,741 - - - - - 9,877 - 8,349 - - - - - - 3,215 - - - - - - - - - - - - - - 9,877 3,215 8,349 639,743 1,090,739 100,664 (1,608) - - - - (525,000) (945,575) (18,917) (1,740) (525,000) (945,575) (18,917) (1,740) 114,743 145,164 81,747 (3,348) 705,833 1,045,169 436,909 (157) 820,576$ 1,190,333$ 518,656$ (3,505)$ Cont'd
Special Revenue Funds
EXHIBIT A
135
City of Marina
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Total Revenues
EXPENDITURES
Current:
General government
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Monterey Cypress CFD
Bay Estates Cove II 2007-2 CFD
Assessment Assessment Locke- 2015-1 Housing
District District Paddon Dunes Assistance
Fund Fund Fund Fund Fund
12,465$ 19,779$ 16,514$ 300,281$ -$ - - - - - - - - - - 645 223 1,294 85,696 81,986 13,110 20,002 17,808 385,977 81,986 - - - - - 10,291 25,000 14,067 114,026 5,697 - - - - - - - - - - - - - - 277,049 - - - - - - - - - - 10,291 25,000 14,067 114,026 282,746 2,819 (4,998) 3,741 271,951 (200,760) - - - - - (2,870) (2,750) (5,235) (2,770) - (2,870) (2,750) (5,235) (2,770) - (51) (7,748) (1,494) 269,181 (200,760) 12,413 5,826 33,635 1,623,930 1,994,893 12,362$ (1,922)$ 32,141$ 1,893,111$ 1,794,133$ Cont'd
Special Revenue Funds
EXHIBIT A
136
City of Marina
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Total Revenues
EXPENDITURES
Current:
General government
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
2015 Marina Marina Measure X
GO Landing Greens Certificate of
Refunding Improvement Improvement Participation
Bonds Bonds Bonds Debt Service
Fund Fund Fund Fund
624,157$ -$ -$ -$ - - - - - - - - 16,484 (54) - 349,389 640,641 (54) - 349,389 1,236 - - - - - - - - - - - - - - - - - - - 340,000 - - 245,000 200,331 - - 533,575 541,567 - - 778,575 99,074 (54) - (429,186) - - - 775,577 (14,855) - - (10,098,097) (14,855) - - (9,322,520) 84,219 (54) - (9,751,706) 562,894 7,600 1,824 9,759,222 647,113$ 7,546$ 1,824$ 7,516$ Cont'd
Debt Service Funds
EXHIBIT A
137
City of Marina
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Total Revenues
EXPENDITURES
Current:
General government
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Measure X Airport Total
Road and Capital Park Nonmajor
Transportation Projects Facilities Governmental
Fund Fund Fund Funds
-$ -$ -$ 3,401,912$ - 78,674 - 78,674 - - - 81,126 491,933 (17,942) - 1,082,254 491,933 60,732 - 4,643,966 - - - 1,236 - - - 763,131 - - - 96,424 - - - 3,215 5,009,674 131,004 - 5,417,727 - - - 585,000 - - - 733,906 5,009,674 131,004 - 7,600,639 (4,517,741) (70,272) - (2,956,673) 11,793,097 258,140 - 12,826,814 - - (918) (11,681,127) 11,793,097 258,140 (918) 1,145,687 7,275,356 187,868 (918) (1,810,986) 8,619,049 2,511,543 918 27,793,093 15,894,405$ 2,699,411$ -$ 25,982,107$ Concluded
Capital Projects Funds
EXHIBIT A
138
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Taxes and assessments -$ -$ -$ -$ Intergovernmental - - - - Charges for services - - - - Investment earnings 6,000 - 18,452 18,452 Other revenue 5,000 - - - Total Revenues 11,000 - 18,452 18,452
EXPENDITURES
Current:
Public works - - - - Economic & community development - - - - Recreation & cultural services - - - - Capital outlay - - - - Debt service
Principal - - - - Interest - - - - Total Expenditures - - - - Excess (Deficiency) of Revenues over Expenditures 11,000 - 18,452 18,452
OTHER FINANCING SOURCES (USES)
Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 11,000 - 18,452 18,452 Fund Balances Beginning 379,350 379,350 379,350 - Fund Balances Ending 390,350$ 379,350$ 397,802$ 18,452$ Cont'd
Budgeted Amounts
CDBG Fund
EXHIBIT A
139
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$ - - - - - - - - - - 483 483 - - - - - - 483 483 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 483 483 - - - - - - - - - - - - - - 483 483 959 959 959 - 959$ 959$ 1,442$ 483$ Cont'd
CDBG Housing Fund
Budgeted Amounts
EXHIBIT A
140
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
110,000$ 98,000$ 96,425$ (1,575)$ - - - - - - - - - - - - - - - - 110,000 98,000 96,425 (1,575) - - - - 110,000 97,000 96,424 576 - - - - - - - - - - - - - - - - 110,000 97,000 96,424 576 - 1,000 1 (999) - - - - - - - - - - - - - 1,000 1 (999) 45,411 45,411 45,411 - 45,411$ 46,411$ 45,412$ (999)$ Cont'd
Public Education Government Fund
Budgeted Amounts
EXHIBIT A
141
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
567,000$ 620,000$ 616,344$ (3,656)$ - - - - - - - - - - (241) (241) - - - - 567,000 620,000 616,103 (3,897) 459,272 573,800 575,824 (2,024) - - - - - - - - - - - - - - - - - - - - 459,272 573,800 575,824 (2,024) 107,728 46,200 40,279 (5,921) - - - - (62,400) (62,400) (62,400) - (62,400) (62,400) (62,400) - 45,328 (16,200) (22,121) (5,921) 45,872 45,872 45,872 - 91,200$ 29,672$ 23,751$ (5,921)$ Cont'd
Budgeted Amounts
Gas Tax Fund
EXHIBIT A
142
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
510,000$ 573,000$ 615,406$ 42,406$ - - - - - - - - 1,500 12,000 24,337 12,337 - - - - 511,500 585,000 639,743 54,743 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 511,500 585,000 639,743 54,743 - - - - (525,000) (525,000) (525,000) - (525,000) (525,000) (525,000) - (13,500) 60,000 114,743 54,743 705,833 705,833 705,833 - 692,333$ 765,833$ 820,576$ 54,743$ Cont'd
Road Maintenance & Rehabilitation Fund
Budgeted Amounts
EXHIBIT A
143
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
950,000$ 1,000,000$ 1,093,808$ 93,808$ - - - - - - - - 1,000 2,000 6,808 4,808 - - - - 951,000 1,002,000 1,100,616 98,616 - 5,100 9,877 (4,777) - - - - - - - - - - - - - - - - - - - - - 5,100 9,877 (4,777) 951,000 996,900 1,090,739 93,839 - - - - (945,575) (945,575) (945,575) - (945,575) (945,575) (945,575) - 5,425 51,325 145,164 93,839 1,045,169 1,045,169 1,045,169 - 1,050,594$ 1,096,494$ 1,190,333$ 93,839$ Cont'd
Transportation Safety & Investment Fund
Budgeted Amounts
EXHIBIT A
144
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$ - - - - 75,000 86,700 81,126 (5,574) 3,000 18,000 22,753 4,753 - - - - 78,000 104,700 103,879 (821) - - - - - - - - 11,950 4,800 3,215 1,585 - - - - - - - - - - - - 11,950 4,800 3,215 1,585 66,050 99,900 100,664 764 - - - - (18,917) (18,917) (18,917) - (18,917) (18,917) (18,917) - 47,133 80,983 81,747 764 436,909 436,909 436,909 - 484,042$ 517,892$ 518,656$ 764$ Cont'd
National Parks Recreation Services Fund
Budgeted Amounts
EXHIBIT A
145
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
6,750$ 6,750$ 6,733$ (17)$ - - - - - - - - - - 8 8 - - - - 6,750 6,750 6,741 (9) 4,434 4,435 8,349 (3,914) - - - - - - - - - - - - - - - - - - - - 4,434 4,435 8,349 (3,914) 2,316 2,315 (1,608) (3,923) - - - - (1,740) (1,740) (1,740) - (1,740) (1,740) (1,740) - 576 575 (3,348) (3,923) (157) (157) (157) - 419$ 418$ (3,505)$ (3,923)$ Cont'd
Seabreeze Assessment District Fund
Budgeted Amounts
EXHIBIT A
146
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
12,500$ 12,500$ 12,465$ (35)$ - - - - - - - - 100 300 645 345 - - - - 12,600 12,800 13,110 310 8,728 8,728 10,291 (1,563) - - - - - - - - - - - - - - - - - - - - 8,728 8,728 10,291 (1,563) 3,872 4,072 2,819 (1,253) - - - - (2,870) (2,870) (2,870) - (2,870) (2,870) (2,870) - 1,002 1,202 (51) (1,253) 12,413 12,413 12,413 - 13,415$ 13,615$ 12,362$ (1,253)$ Cont'd
Monterey Bay Estates Assessment District Fund
Budgeted Amounts
EXHIBIT A
147
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
19,886$ 19,886$ 19,779$ (107)$ - - - - - - - - 100 100 223 123 - - - - 19,986 19,986 20,002 16 16,355 22,250 25,000 (2,750) - - - - - - - - - - - - - - - - - - - - 16,355 22,250 25,000 (2,750) 3,631 (2,264) (4,998) (2,734) - - - - (2,750) (2,750) (2,750) - (2,750) (2,750) (2,750) - 881 (5,014) (7,748) (2,734) 5,826 5,826 5,826 - 6,707$ 812$ (1,922)$ (2,734)$ Cont'd
Cypress Cove II Assessment District Fund
Budgeted Amounts
EXHIBIT A
148
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
16,500$ 16,500$ 16,514$ 14$ - - - - - - - - 100 1,500 1,294 (206) - - - - 16,600 18,000 17,808 (192) 6,916 12,023 14,067 (2,044) - - - - - - - - - - - - - - - - - - - - 6,916 12,023 14,067 (2,044) 9,684 5,977 3,741 (2,236) - - - - (5,235) (5,235) (5,235) - (5,235) (5,235) (5,235) - 4,449 742 (1,494) (2,236) 33,635 33,635 33,635 - 38,084$ 34,377$ 32,141$ (2,236)$ Cont'd
CFD 2007-2 Locke- Paddon Fund
Budgeted Amounts
EXHIBIT A
149
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
298,156$ 298,156$ 300,281$ 2,125$ - - - - - - - - 8,000 60,000 85,696 25,696 - - - - 306,156 358,156 385,977 27,821 363,081 105,966 114,026 (8,060) - - - - - - - - - - - - - - - - - - - - 363,081 105,966 114,026 (8,060) (56,925) 252,190 271,951 19,761 - - - - (2,770) (2,770) (2,770) - (2,770) (2,770) (2,770) - (59,695) 249,420 269,181 19,761 1,623,930 1,623,930 1,623,930 - 1,564,235$ 1,873,350$ 1,893,111$ 19,761$ Cont'd
CFD 2015-1 Dunes Fund
Budgeted Amounts
EXHIBIT A
150
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$ - - - - - - - - 15,000 62,000 81,986 19,986 - - - - 15,000 62,000 81,986 19,986 150,000 - 5,697 (5,697) - - - - - - - - - - 277,049 (277,049) - - - - - - - - 150,000 - 282,746 (282,746) (135,000) 62,000 (200,760) (262,760) - - - - - - - - - - - - (135,000) 62,000 (200,760) (262,760) 1,994,893 1,994,893 1,994,893 - 1,859,893$ 2,056,893$ 1,794,133$ (262,760)$ Cont'd
Housing Assistance Fund
Budgeted Amounts
EXHIBIT A
151
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
582,200$ 621,300$ 624,157$ 2,857$ - - - - - - - - 1,500 9,000 16,484 7,484 - - - - 583,700 630,300 640,641 10,341 - - - - - - - - - - - - - - - - 305,000 340,000 340,000 - 225,000 200,332 200,331 1 530,000 540,932 541,567 (635) 53,700 89,368 99,074 9,706 - - - - (14,855) (14,855) (14,855) - (14,855) (14,855) (14,855) - 38,845 74,513 84,219 9,706 562,894 562,894 562,894 - 601,739$ 637,407$ 647,113$ 9,706$ Cont'd
2015 GO Refunding Bonds Fund
Budgeted Amounts
EXHIBIT A
152
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$ - - - - - - - - - - (54) (54) - - - - - - (54) (54) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (54) (54) - - - - - - - - - - - - - - (54) (54) 7,600 7,600 7,600 - 7,600$ 7,600$ 7,546$ (54)$ Cont'd
Budgeted Amounts
Marina Landing Improvement Bonds Fund
EXHIBIT A
153
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,824 1,824 1,824 - 1,824$ 1,824$ 1,824$ -$ Cont'd
Marina Greens Improvement Bonds Fund
Budgeted Amounts
EXHIBIT A
154
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$ - - - - - - - - 100,000 550,000 349,389 (200,611) - - - - 100,000 550,000 349,389 (200,611) - - - - - - - - - - - - - - - - 320,000 245,000 245,000 - 455,575 533,575 533,575 - 775,575 778,575 778,575 - (675,575) (228,575) (429,186) (200,611) 775,575 775,575 775,577 2 (2,820,000) (10,098,097) (10,098,097) - (2,044,425) (9,322,522) (9,322,520) 2 (2,720,000) (9,551,097) (9,751,706) (200,609) 9,759,222 9,759,222 9,759,222 - 7,039,222$ 208,125$ 7,516$ (200,609)$ Cont'd
Measure X Certificate of Participation Debt Service Fund Budgeted Amounts
EXHIBIT A
155
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$ - - - - - - - - 40,000 300,000 491,933 191,933 - - - - 40,000 300,000 491,933 191,933 - - - - - - - - - - - - 7,365,000 1,257,441 5,009,674 (3,752,233) - - - - - - - - 7,365,000 1,257,441 5,009,674 (3,752,233) (7,325,000) (957,441) (4,517,741) (3,560,300) 4,515,000 11,793,097 11,793,097 -
- - - - 4,515,000 11,793,097 11,793,097 -
(2,810,000) 10,835,656 7,275,356 (3,560,300) 8,619,049 8,619,049 8,619,049 - 5,809,049$ 19,454,705$ 15,894,405$ (3,560,300)$ Cont'd
Measure X Road and Transportation Fund
Budgeted Amounts
EXHIBIT A
156
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$ - 78,674 78,674 - - - - - 10,000 - (17,942) (17,942) - - - - 10,000 78,674 60,732 (17,942) - - - - - - - - - - - - 250,000 87,434 131,004 (43,570) - - - - - - - - 250,000 87,434 131,004 (43,570) (240,000) (8,760) (70,272) (61,512) 250,000 258,140 258,140 - - - - - 250,000 258,140 258,140 - 10,000 249,380 187,868 (61,512) 2,511,543 2,511,543 2,511,543 - 2,521,543$ 2,760,923$ 2,699,411$ (61,512)$ Cont'd
Airport Capital Projects Fund
Budgeted Amounts
EXHIBIT A
157
City of Marina
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances
Budget and Actual (GAAP Basis)
Nonmajor Governmental Funds
For the Year Ended June 30, 2025
REVENUES
Taxes and assessments
Intergovernmental
Charges for services
Investment earnings
Other revenue
Total Revenues
EXPENDITURES
Current:
Public works
Economic & community development
Recreation & cultural services
Capital outlay
Debt service
Principal
Interest
Total Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances Beginning
Fund Balances Ending
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (918) (918) - - (918) (918) - - (918) (918) - 918 918 918 - 918$ -$ -$ -$ Concluded
Park Facilities Fund
Budgeted Amounts
EXHIBIT A
158
City of Marina
Combining Statement of Net Position
Fiduciary Funds
Private Purpose Trust Funds
June 30, 2025
Successor Successor
FORA Agency Agency
Dissolution Obligation Housing
Administration Retirement Assets
Fund Fund Fund Total
ASSETS
Cash and investments -$ 5,475,573$ 200,873$ 5,676,446$ Restricted cash and investments with fiscal agents 4,460,288 3,493,422 - 7,953,710 Accounts receivable - 230,000 - 230,000 Interest receivable - 42,775 1,919 44,694 Prepaid items - 5,462 - 5,462 Capital assets, land - - 900,000 900,000 Total assets 4,460,288$ 9,247,232$ 1,102,792$ 14,810,312$
LIABILITIES
Accounts payable 244,437$ 6,687$ -$ 251,124$ Accrued salaries and benefits - 11,375 - 11,375 Interest payable - 505,546 - 505,546 Deposits and other liabilities - 1,993,396 - 1,993,396 Noncurrent liabilities:
Due within on year 1,510,000 1,085,000 - 2,595,000 Due in more than one year 23,469,769 32,719,864 - 56,189,633 Total liabilities 25,224,206$ 36,321,868$ -$ 61,546,074$
NET POSITION
Held in trust for private purposes (20,763,918)$ (27,074,636)$ 1,102,792$ (46,735,762)$ The accompanying notes are an integral part of these financial statements.
EXHIBIT A
159
City of Marina
Combining Statement of Changes in Net Position
Fiduciary Funds
Private Purpose Trust Funds
For the Year Ended June 30, 2025
Successor Successor
FORA Agency Agency
Dissolution Obligation Housing
Administration Retirement Assets
Fund Fund Fund Total
ADDITIONS
Property taxes 4,767,823$ 4,786,041$ -$ 9,553,864$ Property tax in-lieu - 29,139 - 29,139 Investment earnings 94,230 330,636 8,992 433,858 Total additions 4,862,053 5,145,816 8,992 10,016,861
DEDUCTIONS
Program costs 11,938 2,336,947 - 2,348,885 Legal and professional fees - 66,999 - 66,999 Employee costs - 204,470 - 204,470 Occupancy and operating costs - 3,841 - 3,841 Payments to other agencies 2,060,970 645 - 2,061,615 Interest 737,647 1,384,162 - 2,121,809 Total deductions 2,810,555 3,997,064 - 6,807,619 Change in net position 2,051,498 1,148,752 8,992 3,209,242 Total net position - beginning (22,815,416) (28,223,388) 1,093,800 (49,945,004) Total net position - ending (20,763,918)$ (27,074,636)$ 1,102,792$ (46,735,762)$ The accompanying notes are an integral part of these financial statements.
EXHIBIT A
160
GENERAL FUND COMBINING SCHEDULES
The General Fund is the City's primary operating fund. This 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 another fund. For the City, the general fund includes such activities as public safety, public ways and facilities, parks and recreation services, and economic development services.
EXHIBIT A
161
City of Marina
Combining Balance Sheet
General Fund
June 30, 2025
Vehicle & Groundwater
Equipment Litigation OPEB Pension Library Total
General Replacement Stabilization Obligation Stabilization Maintenance General Fund Fund Fund Fund Fund Fund Fund
ASSETS
Cash and investments 38,780,217$ 5,152,562$ 1,500,000$ 200,000$ 5,000,000$ 209,160$ 50,841,939$ Restricted cash and investments 604,001 - - - - - 604,001 Accounts receivable 4,731,595 - - - - - 4,731,595 Advances to other funds 690 - - - - - 690 Prepaid items 231,404 - - - - - 231,404 Notes receivable 20,710 - - - - - 20,710 Leases receivable 1,962,310 - - - - - 1,962,310 Total assets 46,330,927$ 5,152,562$ 1,500,000$ 200,000$ 5,000,000$ 209,160$ 58,392,649$
LIABILITIES, DEFERRED INFLOWS
AND FUND BALANCES
Liabilities:
Accounts payable 1,577,853$ -$ -$ -$ -$ 8,899$ 1,586,752$ Accrued payroll and benefits 1,064,547 - - - - - 1,064,547 Deposits and other liabilities 1,215,324 - - - - - 1,215,324 Total liabilities 3,857,724 - - - - 8,899 3,866,623 Deferred Inflows of Resources:
Leases receivable 1,858,768 - - - - - 1,858,768 Unavailable revenues 247,472 - - - - - 247,472 Total deferred inflows of resources 2,106,240 - - - - - 2,106,240 Fund Balances:
Nonspendable:
Leases receivable 103,542 - - - - - 103,542 Prepaid items 231,404 - - - - - 231,404 Restricted:
Habitat Restoration 462,386 - - - - - 462,386 Opioid Settlements 141,615 - - - - - 141,615 Public Safety 237,191 - - - - - 237,191 FAA Military Airport Program 750,000 - - - - - 750,000 Committed:
Emergency Reserve 7,185,506 - - - - - 7,185,506 Compensated Absences 400,000 - - - - - 400,000 Fire Truck Purchase 1,007,482 - - - - - 1,007,482 Vehicle & Equipment Replacement - 5,152,562 - - - - 5,152,562 OPEB - - - 200,000 - - 200,000 Groundwater Litigation Stabilization - - 1,500,000 - - - 1,500,000 Pension Stabilization - - - - 5,000,000 - 5,000,000 Library Maintenance - - - - - 200,261 200,261 Unassigned 29,847,837 - - - - - 29,847,837 Total fund balances 40,366,963 5,152,562 1,500,000 200,000 5,000,000 200,261 52,419,786 Total liabilities, deferred inflows of
resources and fund balances 46,330,927$ 5,152,562$ 1,500,000$ 200,000$ 5,000,000$ 209,160$ 58,392,649$
EXHIBIT A
162
City of Marina
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances
General Fund
For the Year Ended June 30, 2025
Vehicle & Groundwater
Equipment Litigation OPEB Pension Library Total
General Replacement Stabilization Obligation Stabilization Maintenance General Fund Fund Fund Fund Fund Fund Eliminations Fund
REVENUES
Taxes and assessments 31,691,708$ -$ -$ -$ -$ -$ -$ 31,691,708$ Licenses, permits and fees 909,281 - - - - - - 909,281 Fines and forfeitures 111,925 - - - - - - 111,925 Intergovernmental 734,868 - - - - - - 734,868 Charges for services 5,002,581 - - - - - - 5,002,581 Investment earnings 4,650,253 - - - - - - 4,650,253 Local contributions 113,079 - - - - - - 113,079 Other revenue 228,841 - - - - - - 228,841 Total Revenues 43,442,536 - - - - - - 43,442,536
EXPENDITURES
Current:
General government 10,151,833 2,230 - - - - - 10,154,063 Public safety 15,339,985 - - - - - - 15,339,985 Public works 2,657,869 - - - - 40,987 - 2,698,856 Economic & community development 4,114,115 - - - - - - 4,114,115 Recreation & cultural services 1,576,600 - - - - - - 1,576,600 Capital outlay 1,966,673 611,601 - - - - - 2,578,274 Debt service
Principal 240,561 264,944 - - - - - 505,505 Interest 4,683 59,604 - - - - - 64,287 Total Expenditures 36,052,319 938,379 - - - 40,987 - 37,031,685 Excess (Deficiency) of
Revenues over Expenditures 7,390,217 (938,379) - - - (40,987) - 6,410,851
OTHER FINANCING SOURCES (USES)
Transfers in 633,337 1,045,665 - - - - (1,250,000) 429,002 Transfers out (3,408,769) - (500,000) - - - 1,250,000 (2,658,769) Leases and subscriptions 568,732 475,996 - - - - - 1,044,728 Total Other Financing Sources (Uses) (2,206,700) 1,521,661 (500,000) - - - - (1,185,039) Net Change in Fund Balances 5,183,517 583,282 (500,000) - - (40,987) - 5,225,812 Fund Balances Beginning 35,183,446 4,569,280 2,000,000 200,000 5,000,000 241,248 - 47,193,974 Fund Balances Ending 40,366,963$ 5,152,562$ 1,500,000$ 200,000$ 5,000,000$ 200,261$ -$ 52,419,786$
EXHIBIT A
163
This page is intentionally blank
EXHIBIT A
164
STATISTICAL SECTION
EXHIBIT A
165
Page Intentionally Left Blank
EXHIBIT A
166
Contents Pages
Financial Trends
These tables contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. 150-157 Revenue Capacity
These tables contain information to help the reader assess the city's most significant local revenue source, which is property tax. 158-165
Debt Capacity
These tables present 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 in the future. 166-170 Demographic and Economic Information
These tables offer demographic and economic indicators to help the reader understand the environment in which the city's financial activities take place. 171-172 Operating Information
These tables 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 173-175 Sources:
Unless otherwise noted, the information in these tables is derived from the annual comprehensive financial reports for the relevant year.
STATISTICAL SECTION
(UNAUDITED)
EXHIBIT A
167
City of Marina TABLE 1
Net Position
Last Ten Fiscal Years
2016 2017 2018 2019 2020
Governmental activities:
Net investment in capital assets 61,460,494$ 64,902,023$ 74,531,326$ 74,955,690$ 76,644,586$ Restricted 6,559,194 9,355,317 12,369,283 14,377,743 32,932,269 Unrestricted 12,018,477 11,101,690 1,153,328 5,397,539 8,141,549 Total governmental activities net position 80,038,165$ 85,359,030$ 88,053,937$ 94,730,972$ 117,718,404$ Business-type activities:
Net investment in capital assets 42,332,248$ 42,448,410$ 41,999,782$ 41,393,300$ 42,711,663$ Unrestricted 7,457,704 7,987,512 8,317,449 10,759,921 11,561,226 Total business-type activities net position 49,789,952$ 50,435,922$ 50,317,231$ 52,153,221$ 54,272,889$ Primary government:
Net investment in capital assets 103,792,742$ 107,350,433$ 116,531,108$ 116,348,990$ 119,356,249$ Restricted 6,559,194 9,355,317 12,369,283 14,377,743 32,932,269 Unrestricted 19,476,181 19,089,202 9,470,777 16,157,460 19,702,775 Total primary government net position 129,828,117$ 135,794,952$ 138,371,168$ 146,884,193$ 171,991,293$ Continued
Fiscal Year
EXHIBIT A
168
City of Marina TABLE 1
Net Position
Last Ten Fiscal Years
2021 2022 2023 2024 2025
Governmental activities:
Net investment in capital assets 77,649,251$ 78,193,840$ 71,602,733$ 94,549,610$ 116,858,407$ Restricted 36,675,399 49,490,708 67,645,647 65,889,151 68,105,288 Unrestricted 10,374,278 41,188,811 49,112,851 62,542,869 69,995,702 Total governmental activities net position 124,698,928$ 168,873,359$ 188,361,231$ 222,981,630$ 254,959,397$ Business-type activities:
Net investment in capital assets 41,902,328$ 41,330,576$ 40,047,291$ 38,899,629$ 37,815,406$ Unrestricted 13,231,995 14,596,097 17,250,971 18,902,544 21,999,002 Total business-type activities net position 55,134,323$ 55,926,673$ 57,298,262$ 57,802,173$ 59,814,408$ Primary government:
Net investment in capital assets 119,551,579$ 119,524,416$ 111,650,024$ 133,449,239$ 154,673,813$ Restricted 36,675,399 49,490,708 67,645,647 65,889,151 68,105,288 Unrestricted 23,606,273 55,784,908 66,363,822 81,445,413 91,994,704 Total primary government net position 179,833,251$ 224,800,032$ 245,659,493$ 280,783,803$ 314,773,805$ Concluded
Notes:
Source: City of Marina Audited Financial Statements
In Fiscal 2015/16, the City acquired two significant capital assets; Preston Park Housing Project $35.1 million and Dunes infrastructure $2.9 million
Fiscal Year
$-
$50
$100
$150
$200
$250
$300
$350
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Total Primary Government Net Position
EXHIBIT A
169
City of Marina TABLE 2
Changes in Net Position
Last Ten Fiscal Years
2016 2017 2018 2019 2020
Expenses
Governmental activities:
General government 3,480,230$ 4,692,664$ 5,513,745$ 5,858,902$ 7,628,497$ Public safety 9,854,516 11,351,326 10,668,593 10,604,157 14,422,863 Public works 1,873,600 1,908,465 1,915,307 2,216,656 2,689,673 Economic & Community Development 2,441,492 1,927,976 2,259,928 2,803,220 3,956,676 Recreation & cultural services 1,179,699 1,173,364 1,197,500 1,169,832 1,244,526 Public Inprovements 1,505,639 1,689,946 1,883,898 2,177,696 - Interest 796,761 667,627 553,256 558,500 591,768 - - - - - Total governmental activities expenses 21,131,937 23,411,368 23,992,227 25,388,963 30,534,003 Business-type activities:
Airport 1,578,540 1,608,413 1,702,082 1,485,600 1,653,799 Preston Park Housing 3,940,705 6,435,459 6,622,148 2,594,187 6,083,395 Abrams-B Housing 3,224,211 3,106,604 3,394,698 5,974,685 4,128,113 Total business-type activities expenses 8,743,456 11,150,476 11,718,928 10,054,472 11,865,307 Total primary government expenses 29,875,393$ 34,561,844$ 35,711,155$ 35,443,435$ 42,399,310$ Program Revenues
Governmental activities:
Charges for services & program revenues:
General government 2,494,834$ 2,499,202$ 3,932,540$ 4,020,638$ 4,232,396$ Public safety 786,543 733,781 909,599 218,953 196,284 Public works - 599 440 - - Economic & Community Development 1,252,538 1,685,111 1,473,747 1,430,281 3,801,226 Recreation & cultural services 81,713 77,361 94,627 92,731 172,209 Public Inprovements 1,929,360 2,306,877 2,295,007 1,776,845 - Debt Service - - - - - Operating grants and contributions 380,876 - 397,385 846,776 1,018,974 Capital grants and contributions 4,585,380 - 1,197,861 1,517,506 11,212,794 Total governmental activities program revenues 11,511,244 7,302,931 10,301,206 9,903,730 20,633,883 Business-type activities:
Charges for services:
Airport 1,135,525 1,157,167 1,078,147 1,331,552 1,340,046 Preston Park Housing 4,934,125 6,328,162 6,469,476 3,455,449 6,843,782 Abrams-B Housing 3,197,353 3,264,067 3,324,176 6,687,941 3,495,394 Operating grants and contributions 10,000 390,351 10,000 - - Capital grants and contributions - 3,986,805 696,860 - 2,530,886 Total business-type activities program revenues 9,277,003 15,126,552 11,578,659 11,474,942 14,210,108 Total primary government program revenues 20,788,247 22,429,483 21,879,865 21,378,672 34,843,991 Net (expense)/revenue:
Governmental activities (9,620,693) (16,108,437) (13,691,021) (15,485,233) (9,900,120) Business-type activities 533,547 3,976,076 (140,269) 1,420,470 2,344,801 Total primary government net (expense)/revenue (9,087,146)$ (12,132,361)$ (13,831,290)$ (14,064,763)$ (7,555,319)$ General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes 2,719,013$ 3,018,698$ 3,261,967$ 3,796,881$ 3,724,035$ Sales and use taxes 5,210,921 5,366,144 5,929,585 6,862,925 8,420,971 Franchise taxes 1,007,012 1,084,574 1,173,881 1,976,778 1,225,160 Transient occupancy taxes 2,549,531 2,680,928 3,297,828 4,008,179 3,472,430 Gas taxes - - - - 946,422 Motor vehicle taxes 2,685,134 2,934,743 3,252,508 3,649,318 4,012,763 Other taxes - - - - 142,225 Grants not restricted to a program - - - - 2,149,827 Investment earnings 75,584 149,622 402,805 613,259 973,856 Transfers, Miscellaneous & One-time revenues 730,262 1,817,437 2,466,111 1,254,928 1,536,863 Special items 37,062,047 - (3,398,757) - 6,283,000 Total governmental activities 52,039,504 17,052,146 16,385,928 22,162,268 32,887,552 Business-type activities:
Other revenue - - - - 274,299 Investment earnings 6,954 10,824 21,578 76,494 87,568 Contributed capital assets 1,036,227 - 324,720 - Transfers In(Out) Net - - - 14,306 (587,000) Total business-type activities 6,954 1,047,051 21,578 415,520 (225,133) Total primary government 52,046,458$ 18,099,197$ 16,407,506$ 22,577,788$ 32,662,419$ Change in Net Position
Governmental activities 42,418,811$ 943,709$ 2,694,907$ 6,677,035$ 22,987,432$ Business-type activities 540,501 5,023,127 (118,691) 1,835,990 2,119,668 Total primary government 42,959,312$ 5,966,836$ 2,576,216$ 8,513,025$ 25,107,100$ Continued
Source: City of Marina Audited Financial Statements
EXHIBIT A
170
City of Marina
Changes in Net Position
Last Ten Fiscal Years
Expenses
Governmental activities:
General government
Public safety
Public works
Economic & Community Development
Recreation & cultural services
Public Inprovements
Interest
Total governmental activities expenses
Business-type activities:
Airport
Preston Park Housing
Abrams-B Housing
Total business-type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services & program revenues:
General government
Public safety
Public works
Economic & Community Development
Recreation & cultural services
Public Inprovements
Debt Service
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business-type activities:
Charges for services:
Airport
Preston Park Housing
Abrams-B Housing
Operating grants and contributions
Capital grants and contributions
Total business-type activities program revenues
Total primary government program revenues
Net (expense)/revenue:
Governmental activities
Business-type activities
Total primary government net (expense)/revenue
General Revenues and Other Changes in Net Position
Governmental activities:
Taxes
Property taxes
Sales and use taxes
Franchise taxes
Transient occupancy taxes
Gas taxes
Motor vehicle taxes
Other taxes
Grants not restricted to a program
Investment earnings
Transfers, Miscellaneous & One-time revenues
Special items
Total governmental activities
Business-type activities:
Other revenue
Investment earnings
Contributed capital assets
Transfers In(Out) Net
Total business-type activities
Total primary government
Change in Net Position
Governmental activities
Business-type activities
Total primary government
Source: City of Marina Audited Financial Statements
TABLE 2
2021 2022 2023 2024 2025
8,897,835$ 8,136,329$ 10,144,291$ 11,417,692$ 11,208,086$ 13,666,296 14,228,442 14,912,300 15,514,681 17,476,222 2,405,492 2,132,980 2,244,348 2,890,198 3,687,527 5,247,962 4,980,771 10,030,796 7,259,041 7,270,452 940,929 1,050,440 974,459 1,640,425 1,987,154 - - - - - 639,390 561,904 1,487,548 1,037,825 921,964 - - - - - 31,797,904 31,090,866 39,793,742 39,759,862 42,551,405 1,892,873 1,968,765 2,023,224 2,125,687 1,851,118 6,317,011 7,304,452 6,687,201 7,091,193 7,155,670 3,167,489 2,989,874 2,999,833 3,415,387 4,053,647 11,377,373 12,263,091 11,710,258 12,632,267 13,060,435 43,175,277$ 43,353,957$ 51,504,000$ 52,392,129$ 55,611,840$ 3,763,108$ 3,932,646$ 4,967,751$ 2,887,852$ 3,003,935$ 289,185 359,321 356,363 331,306 321,594 - - - - - 6,584,030 20,970,137 13,214,227 11,914,948 14,974,341 81,644 128,622 118,473 160,462 302,771 - - - - - - - - - - 1,788,253 5,145,614 3,288,535 958,727 807,806 383,039 8,178,443 3,020,487 7,406,021 11,513,156 12,889,259 38,714,783 24,965,836 23,659,316 30,923,603 1,790,543 1,805,219 2,154,934 1,814,540 2,120,269 7,058,160 7,190,772 7,388,417 7,555,990 7,886,235 3,477,132 3,662,562 3,779,079 3,748,785 3,891,107 - - - - - 462,750 669,523 489,473 41,671 131,004 12,788,585 13,328,076 13,811,903 13,160,986 14,028,615 25,677,844 52,042,859 38,777,739 36,820,302 44,952,218 (18,908,645) 7,623,917 (14,827,906) (16,100,546) (11,627,802) 1,411,212 1,064,985 2,101,645 528,719 968,180 (17,497,433)$ 8,688,902$ (12,726,261)$ (15,571,827)$ (10,659,622)$ 3,919,415$ 4,502,513$ 5,182,526$ 5,585,707$ 5,613,575$ 9,640,663 11,207,575 11,111,996 11,027,617 11,734,454 1,238,550 1,379,811 1,349,123 1,348,548 1,296,866 3,501,246 4,631,337 4,584,644 5,527,793 6,624,200 986,884 946,041 1,015,025 1,141,202 1,231,751 4,360,659 4,756,478 5,241,930 5,765,438 6,206,513 101,780 211,466 567,023 2,525,437 2,386,256 139,197 69,807 254,442 - - 679,275 319,032 2,881,166 7,363,190 7,830,265 1,597,893 1,423,504 2,127,903 2,009,490 681,689 - 6,323,477 - 8,426,523 - 26,165,562 35,771,041 34,315,778 50,720,945 43,605,569 226,507 252,874 232,584 123,656 166,736 55,758 171,877 367,665 746,044 1,075,361 - - - - - (832,043) (864,575) (1,330,305) (894,508) (198,042) (549,778) (439,824) (730,056) (24,808) 1,044,055 25,615,784$ 35,331,217$ 33,585,722$ 50,696,137$ 44,649,624$ 7,256,917$ 43,394,958$ 19,487,872$ 34,620,399$ 31,977,767$ 861,434 625,161 1,371,589 503,911 2,012,235 8,118,351$ 44,020,119$ 20,859,461$ 35,124,310$ 33,990,002$ Continued
EXHIBIT A
171
City of Marina TABLE 3
Fund Balances of Governmental Funds
Last Ten Fiscal Years
2016 2017 2018 2019 2020
General Fund
Nonspendable 543,713$ 530,713$ 530,713$ -$ -$ Restricted 446,329 211,371 511,371 239,497 595,729 Committed 570,730 7,027,012 7,367,012 9,644,438 10,597,489 Unassigned 6,340,666 1,318,952 4,157,087 7,549,288 13,313,018 Total General Fund 7,901,438$ 9,088,048$ 12,566,183$ 17,433,223$ 24,506,236$ All other governmental funds
Restricted -
Recreation & Social Service Programs 396,963$ 456,117$ 529,410$ 603,788$ 641,522$ Transportation and Streets - - - - 1,655,668 Economic & Community Development 5,094,894 8,270,438 10,318,250 13,121,425 25,464,987 Capital Improvements & Maintenance 59,329 256,727 950,955 1,500,191 3,613,719 Debt service 561,680 859,522 884,213 889,834 960,644 Committed 8,159,831 5,411,834 6,617,787 5,960,566 6,966,622 Unassigned - - - (376) (1,561) Total all other governmental funds 14,272,697$ 15,254,638$ 19,300,615$ 22,075,428$ 39,301,601$ Fund Balance - All Governmental Funds 22,174,135$ 24,342,686$ 31,866,798$ 39,508,651$ 63,807,837$ Continued
Source: City of Marina audited financial statements
EXHIBIT A
172
City of Marina
Fund Balances of Governmental Funds
Last Ten Fiscal Years
General Fund
Nonspendable
Restricted
Committed
Unassigned
Total General Fund
All other governmental funds
Restricted
Recreation & Social Service Programs
Transportation and Streets
Economic & Community Development
Capital Improvements & Maintenance
Debt service
Committed
Unassigned
Total all other governmental funds
Fund Balance - All Governmental Funds
Source: City of Marina audited financial statements
TABLE 3
2021 2022 2023 2024 2025
-$ 403,700$ 309,169$ 339,833$ 334,946$ 235,609 241,408 235,038 1,466,436 1,591,192 11,457,490 13,498,251 15,080,252 21,416,452 20,645,811 15,435,737 18,522,687 28,709,129 23,971,253 29,847,837 27,128,836$ 32,666,046$ 44,333,588$ 47,193,974$ 52,419,786$ 263,153$ 309,681$ 364,363$ 436,909$ 518,656$ 2,130,397 2,449,778 2,918,571 3,472,678 3,972,274 28,452,169 41,488,214 47,465,962 45,800,556 49,038,749 4,639,733 8,340,525 6,700,604 14,581,744 21,806,361 954,338 925,612 12,733,230 10,781,911 1,201,698 8,522,887 29,502,879 27,337,841 42,906,186 42,462,509 (2,296) (276) (477) (157) (5,427) 44,960,381$ 83,016,413$ 97,520,094$ 117,979,827$ 118,994,820$ 72,089,217$ 115,682,459$ 141,853,682$ 165,173,801$ 171,414,606$ Concluded
EXHIBIT A
173
City of Marina TABLE 4
Last Ten Fiscal Years
(i) (ii)
2016 2017 2018 2019 2020
Revenues
Taxes & assessments 14,776,278$ 15,622,866$ 17,513,555$ 21,359,063$ 21,944,005$ Licenses, Permits & Fees 545,288 672,613 2,127,179 2,346,192 1,962,170 Fines and penalties 144,598 146,415 106,116 102,543 60,958 Intergovernmental revenues 2,649,113 3,224,446 2,252,459 2,069,412 15,455,706 Charges for services 5,315,358 5,203,312 6,074,165 5,136,602 6,378,832 Investment Earnings 75,584 149,622 402,532 613,259 973,856 Local contributions - - - - - Other revenues 39,664,858 2,893,492 1,169,157 839,396 979,403 Total revenues 63,171,077 27,912,766 29,645,163 32,466,467 47,754,930 Expenditures
General government 2,765,874 3,350,106 4,334,089 4,664,354 5,310,952 Public safety 10,425,058 10,581,491 10,127,912 10,300,132 11,281,745 Public works 1,784,937 1,798,782 1,821,925 1,868,424 2,109,907 Economic & community development 2,441,977 1,923,875 2,254,588 2,641,074 2,439,900 Recreation & cultural services 964,613 950,754 1,002,449 994,789 950,128 Public improvements/capital outlay 41,314,503 6,281,854 2,042,472 3,678,333 6,850,668 Debt Service
Principal 1,284,007 889,686 625,200 765,000 809,692 Interest and fiscal charges 734,155 719,354 641,193 561,358 572,752 Total expenditures 61,715,124 26,495,902 22,849,828 25,473,464 30,325,744 Excess of revenues over(under) expenditures 1,455,953 1,416,864 6,795,335 6,993,003 17,429,186 Other financing sources (uses)
Transfers in 4,669,312 2,156,862 1,312,011 4,298,165 6,421,672 Transfers out (4,543,717) (1,405,176) (583,234) (4,312,471) (5,834,672) Sale of capital assets - - - - 6,283,000 Issuance of long-term debt - - - 663,156 - Total other financing sources (uses) 125,595 751,686 728,777 648,850 6,870,000 Net change in fund balances 1,581,548 2,168,550 7,524,112 7,641,853 24,299,186 Beginning Fund Balances 20,592,588 22,174,136 24,342,686 31,866,798 39,508,651 Prior-period restatement - - - - - Ending Fund Balances 22,174,136$ 24,342,686$ 31,866,798$ 39,508,651$ 63,807,837$ Continued
Source: City of Marina Audited Financial Statements
Changes in Fund Balances of Governmental Funds
(ii) - During fiscal 2016/17 The City recorded a one-time revenue of almost $2 from donation of infrastructure at the Dunes development. In addition, significant extraordinary grants for capital improvements were received.
(i) - during FY 2015/2016 the City recorded a one-time revenue resulting from sale of a 50- year leasehold interest in the Preston Park Housing development to the Preston Park Corporation. An extraordinay capital outlay cost was recorded for the acquisition of that asset.In addition, the developer of the former University Villages donated almost $3 Million infrastructure which was recognized as one-time revenue. Other one-time capital asset-related revenues totalled $1.3 Million.
EXHIBIT A
174
City of Marina
Last Ten Fiscal Years
Revenues
Taxes & assessments
Licenses, Permits & Fees
Fines and penalties
Intergovernmental revenues
Charges for services
Investment Earnings
Local contributions
Other revenues
Total revenues
Expenditures
General government
Public safety
Public works
Economic & community development
Recreation & cultural services
Public improvements/capital outlay
Debt Service
Principal
Interest and fiscal charges
Total expenditures
Excess of revenues over(under) expenditures
Other financing sources (uses)
Transfers in
Transfers out
Sale of capital assets
Issuance of long-term debt
Total other financing sources (uses)
Net change in fund balances
Beginning Fund Balances
Prior-period restatement
Ending Fund Balances
Source: City of Marina Audited Financial Statements
Changes in Fund Balances of Governmental Funds
TABLE 4
2021 2022 2023 2024 2025
23,749,197$ 27,906,373$ 29,052,266$ 32,921,745$ 35,093,620$ 2,446,456 10,878,675 7,382,359 5,120,288 8,848,246 95,186 109,348 100,419 83,689 111,925 2,530,786 5,759,109 4,282,955 7,680,204 11,959,432 8,064,882 14,357,935 11,010,300 10,029,890 9,573,560 679,275 319,032 2,881,166 7,363,190 7,830,265 - 7,500,523 2,764,985 1,120,645 388,079 1,224,019 1,079,380 961,336 1,255,937 1,051,715 38,789,801 67,910,375 58,435,786 65,575,588 74,856,842 6,690,092 7,003,641 9,273,919 10,279,864 10,155,299 12,046,544 12,800,633 13,228,179 13,351,348 15,339,985 2,206,588 1,935,452 2,085,003 2,575,811 3,461,987 4,052,730 3,694,361 8,441,084 6,094,068 6,069,128 812,409 926,437 865,526 1,257,871 1,579,815 3,994,336 4,200,899 8,582,716 15,591,810 30,538,405 888,516 991,695 1,600,664 1,400,014 1,652,617 649,249 572,916 1,357,192 1,086,310 1,061,571 31,340,464 32,126,034 45,434,283 51,637,096 69,858,807 7,449,337 35,784,341 13,001,503 13,938,492 4,998,035 5,821,845 22,344,337 13,794,033 32,226,207 23,955,603 (4,989,802) (21,479,762) (12,463,728) (31,331,699) (23,757,561) - 6,323,477 - 8,426,523 - - 275,212 11,839,415 60,596 1,044,728 832,043 7,463,264 13,169,720 9,381,627 1,242,770 8,281,380 43,247,605 26,171,223 23,320,119 6,240,805 63,807,837 72,089,217 115,682,459 141,853,682 165,173,801 - 345,637 - - - 72,089,217$ 115,682,459$ 141,853,682$ 165,173,801$ 171,414,606$ Concluded
EXHIBIT A
175
City of Marina TABLE 5
General Fund Tax Revenues
Last Ten Fiscal Years
Franchise & Transient Motor Vehicle.
Property Sales Cardroom Occupancy In-Lieu Total
2,252,005$ 5,210,921$ 1,037,816$ 2,549,531$ 2,685,134$ 13,735,407$ 2,462,394 5,288,097 983,741 2,680,927 2,934,017 14,349,176 2,616,657 5,847,182 1,057,654 3,297,828 3,252,508 16,071,829 3,079,361 6,862,925 1,259,574 4,008,180 3,649,318 18,859,358 3,044,638 7,740,865 1,249,755 3,472,431 4,012,763 19,520,452 3,111,184 8,793,254 1,221,904 3,501,246 4,360,659 20,988,247 3,790,110 10,365,252 1,591,277 4,631,337 4,756,478 25,134,454 4,271,735 10,110,214 1,801,654 4,584,644 5,241,930 26,010,177 4,606,834 10,027,067 3,768,645 5,527,793 5,765,438 29,695,777 4,633,648 10,640,647 3,586,700 6,624,200 6,206,513 31,691,708 Source: City of Marina Financial Statements
2021
2022
2023
2025
Fiscal Year
Ended
June 30,
2016
2017
2018
2024
2019
2020
$-
$5
$10
$15
$20
$25
$30
$35
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
Year
General Fund Tax Revenue by Fiscal Year
EXHIBIT A
176
City of Marina TABLE 6
General Fund Revenues
Last Ten Fiscal Years
Fiscal Year Ended
June 30, Taxes
Licenses, Permits
& Fees
Fines, Penalties
and Forfeitures
Chrg for Svcs
Grants & Program
Income
Investment
Earnings Other Total *
2016 ** 13,735,407$ 545,288$ 144,598$ 4,311,415$ 41,376$ 145,502$ 18,923,586$ 2017 *** 14,349,176 672,613 146,415 3,719,176 96,574 429,215 19,413,169 2018 16,071,829 2,127,179 106,116 3,455,823 242,670 1,531,133 23,534,750 2019 18,859,358 2,346,192 102,543 3,313,868 334,220 881,440 25,837,621 2020 19,502,452 1,962,170 60,957 4,045,957 552,780 1,445,811 27,570,127 2021 20,988,247 2,446,456 95,186 5,429,334 323,971 466,679 29,749,873 2022 25,134,454 2,721,385 109,348 5,861,947 164,114 349,519 34,340,767 2023 26,010,177 4,383,208 100,419 5,493,721 1,350,285 223,294 37,561,104 2024 29,695,777 937,002 83,689 5,298,402 3,971,343 190,775 40,176,988 2025 31,691,708 909,281 111,925 5,737,449 4,650,253 341,937 43,442,553 Source: City of Marina Financial Statements
* Excludes transfers in from other funds
** Other excludes $37.9 million non-cash capital assets transactions for consistency *** Other excludes $1.6 million non-cash capital assets transactions for consistency $-
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50Millions
Total General Fund Revenue by Fiscal Year
EXHIBIT A
177
City of Marina TABLE 7
All Governmental Funds Revenues
Last Ten Fiscal Years
Fiscal Year
Ended
June 30,
Taxes &
Assessments
Licenses,
Permits & Fees
Fines, Penalties
and Forfeitures
Intergov't
Revenues
Chrg for
Services
Investment
Earnings Other Total *
2016 ** 14,776,278$ 545,288$ 144,598$ 2,649,113$ 5,315,358$ 75,584$ 1,751,986$ 25,258,205$ 2017 *** 15,622,866 672,613 146,415 3,224,446 5,203,312 149,622 546,503 25,565,777 2018 17,513,555 2,127,179 106,116 2,252,459 6,074,165 402,532 3,421,616 31,897,622 2019 **** 21,359,063 2,346,192 102,543 2,069,412 5,136,602 613,259 2,908,808 34,535,879 2020 21,944,005 1,962,170 60,958 15,455,706 6,378,832 973,856 979,403 47,754,930 2021 23,749,197 2,446,456 95,186 2,530,786 8,064,882 679,275 1,224,019 38,789,801 2022 27,906,373 10,878,675 109,348 5,759,109 14,357,935 319,032 8,579,903 67,910,375 2023 29,052,266 7,382,359 100,419 4,282,955 11,010,300 2,881,166 3,726,321 58,435,786 2024 32,921,745 5,120,288 83,689 7,680,204 10,029,890 7,363,190 2,376,582 65,575,588 2025 35,093,620 8,848,246 111,925 11,959,432 9,573,560 7,830,265 1,439,794 74,856,842 Source: City of Marina Financial Statements
* Excludes interfund transfers in
** Other excludes $37.9 million non-cash capital lease transactions for consistency *** Other excludes $1.6 million non-cash capital assets transactions for consistency **** Other excludes $.66 million non-cash lease transaction for consistency $-
$10
$20
$30
$40
$50
$60
$70
$80Millions
Total Governmental Funds Revenue by Fiscal Year
EXHIBIT A
178
City of Marina
City-Wide Net Assessed Taxable Value of Property by Category (1) Table 8
Last Ten Fiscal Years
Fiscal
Year
Ended
June 30,
Residential
Property
Commercial
Property
Other
Property
Total Secured
Property
Unsecured
Property
Net Assessed
Taxable
Value
Total
Direct Tax
Rate (2)
2016 1,136,409,850$ 262,253,554$ 197,061,639$ 1,595,725,043$ 60,055,774$ 1,655,780,817$ 0.1724 2017 1,288,383,516 283,283,667 176,181,865 1,747,849,048 68,005,667 1,815,854,715 0.1732 2018 1,357,236,335 328,996,908 182,966,663 1,869,199,906 68,051,914 1,937,251,820 0.1717 2019 1,534,763,376 365,013,646 214,926,299 2,114,703,321 64,282,886 2,178,986,207 0.1733 2020 1,726,084,925 365,338,313 235,741,202 2,327,164,440 73,146,560 2,400,311,000 0.1697 2021 1,925,604,506 388,937,035 225,250,080 2,539,791,621 74,243,355 2,614,034,976 0.1723 2022 2,060,649,760 395,340,083 304,310,101 2,760,299,944 92,871,390 2,853,171,334 0.1668 2023 2,357,478,482 402,041,644 281,182,353 3,040,702,479 113,209,406 3,153,911,885 0.1675 2024 2,710,431,354 426,084,080 279,857,768 3,416,373,202 134,090,219 3,550,463,421 0.1676 2025 2,949,136,939 447,585,993 273,321,482 3,670,044,414 148,057,572 3,818,101,986 0.1646
of the 1% County levy in the amount of 0.1501%. See table 9 for additional information.
Source: Monterey County Assessor Combined Tax Rolls; and HdL, Coren & Cone (2) Total direct tax rate is represented by TRA 12-004. This rate includes voter-approved bonded debt of .0175% and the City's share (1) References all tax rates within the City, including the General Fund and RDA. The General Fund allocation is provided in Table 10. $0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Billions
Taxable Assessed
Value
EXHIBIT A
179
City of Marina TABLE 9
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Basic City and County Levy
Monterey County-Wide 0.13910 0.13910 0.13910 0.13910 0.13910 0.13910 0.13910 0.13910 0.13910 0.13910 County Library 0.02272 0.02272 0.02272 0.02272 0.02272 0.02272 0.02272 0.02272 0.02272 0.02272 City of Marina 0.15010 0.15010 0.15010 0.15010 0.15010 0.15010 0.15010 0.15010 0.15010 0.15010 Monterey County Office of Education 0.02666 0.02666 0.02666 0.02666 0.02666 0.02666 0.02666 0.02666 0.02666 0.02666 Monterey Pen Unified School District 0.43798 0.43798 0.43798 0.43798 0.43798 0.43798 0.43798 0.43798 0.43798 0.43798 Monterey Pen College 0.04730 0.04730 0.04730 0.04730 0.04730 0.04730 0.04730 0.04730 0.04730 0.04730 MCWRA Dist 0.00139 0.00139 0.00139 0.00139 0.00139 0.00139 0.00139 0.00139 0.00139 0.00139 Monterey Regional Park Dist 0.01159 0.01159 0.01159 0.01159 0.01159 0.01159 0.01159 0.01159 0.01159 0.01159 North Salinas Valley Mosquito Abatement 0.00835 0.00835 0.00835 0.00835 0.00835 0.00835 0.00835 0.00835 0.00835 0.00835 Moss Landing Harbor Dist 0.00209 0.00209 0.00209 0.00209 0.00209 0.00209 0.00209 0.00209 0.00209 0.00209 Educational Revenue Aug. Fund (ERAF)(3)
0.15272 0.15272 0.15272 0.15272 0.15272 0.15272 0.15272 0.15272 0.15272 0.15272 Total 1% 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 Overlapping Assessment
City of Marina debt service - - - - - - - - - - Marina Library 2002 Election Series 2005 - - - - - - - - - - MPCCD 2013 Refund (1) 0.02304 - - - - - - - - - MPUSD 2010 Ser A, 2012 Election (2) - - - - - - - - - - Marina 2015 GO Refunding Bonds 0.02235 0.02307 0.02161 0.02320 0.01964 0.02218 0.01674 0.01742 0.01748 0.01604 MPCCD 2002 B,C; 2013 Ref A,B; 2016 Ref (1) - 0.02234 0.02166 0.02119 0.02048 0.02017 0.03201 0.03034 0.02887 0.02193 MPUSD 2010 Series A,B (2) 0.03000 0.03000 0.02890 0.09196 0.11707 0.04145 0.06042 0.05654 0.05162 0.04821 Total Overlapping Rate 0.07539 0.07540 0.07217 0.13634 0.15720 0.08380 0.10917 0.10430 0.09797 0.08619 Total Tax Rate 1.07539 1.07541 1.07217 1.13635 1.15720 1.08380 1.10917 1.10430 1.09797 1.08619 City share of 1% tax levy (3)
0.15010 0.15010 0.15010 0.15010 0.15010 0.15010 0.15010 0.15010 0.15010 0.15010 Voter approved City Debt Rate 0.02235 0.02307 0.02161 0.02320 0.01964 0.02218 0.01674 0.01742 0.01748 0.01453 Total Direct Rate 0.17245 0.17317 0.17171 0.17330 0.16974 0.17228 0.16684 0.16752 0.16758 0.16463
Notes:
(1) Monterey Peninsula Community College District (MPCCD) (2) Monterey Peninsula Unified Schoold District (MPUSD) (3) This amount includes the City of Marina's share of the Educational Revenue Augmentation Funds (ERAF) in the amount of 0.04558; and the County of Monterey at 0.10714. The City does not receive the ERAF funds.
Source: County Auditor/Controller data; and MuniServices, LLC /Avenu Insights & Analytics; and HdL, Coren & Cone TRA 12-004 is represented for this report
Fiscal Year Ended June 30,
EXHIBIT A
180
City of Marina TABLE 10
Allocation of City-Wide Net Assessed Property Tax Values Last Ten Fiscal Years
Combined
Fiscal
Year
Ended
June 30,
Assessed
Value
Reduced by
Base Year
(BY) Value
Successor
Agency
Incremental AV
General Fund
Assessed Value
Add Successor
Agency Base
Year AV
General Fund
AV and BY
Value
Total City Net
Assessed Value
2016 400,548,045$ 39,738,135$ 360,809,910$ 1,255,232,772$ 39,738,135$ 1,294,970,907$ 1,655,780,817$ 2017 501,133,467 39,738,135 461,395,332 1,314,721,248 39,738,135 1,354,459,383 1,815,854,715 2018 546,452,570 39,738,135 506,714,435 1,390,799,250 39,738,135 1,430,537,385 1,937,251,820 2019 688,531,479 39,738,135 648,793,344 1,490,454,728 39,738,135 1,530,192,863 2,178,986,207 2020 831,012,283 39,738,135 791,274,148 1,569,298,717 39,738,135 1,609,036,852 2,400,311,000 2021 952,072,669 39,738,135 912,334,534 1,661,962,307 39,738,135 1,701,700,442 2,614,034,976 2022 1,129,358,534 39,738,135 1,089,620,399 1,723,812,800 39,738,135 1,763,550,935 2,853,171,334 2023 1,327,206,567 39,738,135 1,287,468,432 1,826,705,318 39,738,135 1,866,443,453 3,153,911,885 2024 1,623,336,691 39,738,135 1,583,598,556 1,927,126,730 39,738,135 1,966,864,865 3,550,463,421 2025 1,815,957,549 39,738,135 1,776,219,414 2,002,144,437 39,738,135 2,041,882,572 3,818,101,986 Sources: Monterey County Assessor Combined Tax Rolls; and HdL, Coren & Cone Successor Agency Net Assessed Value (AV) General Fund Net Assessed Value $0.0
$0.5
$1.0
$1.5
$2.0
$2.5
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Billions
Net Assessed Values
General Fund and Successor Agency
Successor Agency Incremental AV General Fund AV and BY Value
EXHIBIT A
181
City of Marina TABLE 11
General Fund Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the Fiscal Year of Levy
Percent Supplemental Delinquent
Total Tax Current Tax of Levy Tax Tax Total
Levy1 Collections 2 Collected Collections 3 Collections 4 Collections 1,938,783 1,916,414 98.8% 97,657 31,520 2,045,591 2,027,847 2,000,354 98.6% 98,343 29,248 2,127,945 2,141,749 2,118,463 98.9% 110,699 26,704 2,255,866 2,290,949 2,256,347 98.5% 129,421 33,321 2,419,089 2,408,991 2,353,299 97.7% 110,395 24,840 2,488,534 2,547,724 2,537,148 99.6% 137,913 33,337 2,708,398 2,640,324 2,616,373 99.1% 168,171 32,616 2,817,160 2,794,371 2,776,555 99.4% 193,072 21,930 2,991,557 2,944,718 2,910,305 98.8% 202,314 48,023 3,160,642 3,057,032 3,032,953 99.2% 166,570 30,401 3,229,923 Notes:
(1)
(2)
(3)
(4)
Sources: County of Monterey Assessor Combined Tax Rolls; and HdL, Coren & Cone; and City of Marina Finance Department The amounts listed in this column represent prior year secured, prior year secured, unsecured, and unitary taxes. 2017
2018
2019
2020
2021
2022
2023
2024
2025
2016
Includes supplemental tax assessments.
Fiscal
Year
Ended
June 30
The Monterey County Auditor-Controller's Office does not provide the total levy. This amount is calculated referencing the assessed values of properties and the weighted values of the tax rate established for the General Fund and the Successor Agency base values. The weighted percentage is 0.1497%.
This represents the secured and unsecured current year property tax receipts that correspond to the property tax valuations.
This excludes FORA and Successory Agency surplus property tax receipts and CSUMB property tax receipts. $0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Millions
General Fund
Property Tax Collections
EXHIBIT A
182
City of Marina TABLE 12
City-Wide Principal Property Tax Payers
Last Fiscal Year and Nine Years Ago
Taxpayer Taxable Value
% of Total City
Taxable Value Taxable Value
% of Total City
Taxable Value
Hamstra-Appleton LLC 56,630,276$ 1.48% -$ - Joby Aviation 52,253,568 1.37% - - LV44 LP 48,023,614 1.26% 29,523,742 1.78%
Gates at Marina Owner LLC 41,859,533 1.10% - - Pacific Coast Highway Property LLC 39,557,143 1.04% - - HHLP Sanctuary Associates LLC 33,296,450 0.87% 20,688,670 1.25% Target Corporation 31,566,000 0.83% 22,299,030 1.35% MHC Marina Dunes LP 30,274,732 0.79% - - MRP California 30,269,316 0.79% - - Walmart Real Estate Business Trust 30,081,979 0.79% 26,073,895 1.57% Shea Marina Village LLC - - 42,357,043 2.56% Community Hospital Properties Inc - - 23,399,525 1.41% Cypress Marina Heights LLP - - 21,870,008 1.32% AMCAL Monterey Bay Inc - - 21,847,962 1.32% Cemex Inc - - 17,349,315 1.05% Michael J Tate Trust - - 16,667,691 1.01% Total Top 10 Taxpayers 393,812,611$ 10.3% 242,076,881$ 14.6% Total Taxable Value 3,818,101,986$ 100.00% 1,655,780,817 100.00% Source: Monterey County Assessor; and HdL, Coren & Cone. 2024-25 2015-16
EXHIBIT A
183
City of Marina TABLE 13
Total Outstanding Debt
Last Ten Fiscal Years
2016 2017 2018 2019 2020
Governmental Activities:
General obligation library refunding bonds 7,640,000$ 7,555,000$ 7,390,000$ 7,195,000$ 6,970,000$ Pension obligation bonds 900,000 275,000 145,000 - - Total General Obligation Bonds 8,540,000 7,830,000 7,535,000 7,195,000 6,970,000 Revenue bonds - Abrams-B Housing 11,465,000 11,275,000 10,860,000 10,435,000 10,005,000 Total Bonded Indebtedness 20,005,000 19,105,000 18,395,000 17,630,000 16,975,000 Certificates of participation - Measure X - - - - - Leases 18,767 - - 663,156 508,464 Subscription liabilities - - - - - Total Governmental Activities 21,246,978 20,394,557 19,629,374 19,667,450 19,027,941 Business-type Activities:
Promissory note - Preston Park Housing 35,950,000 35,950,000 35,950,000 35,950,000 35,950,000 Total Debt 57,196,978$ 56,344,557$ 55,579,374$ 55,617,450$ 54,977,941$ Per Capita income1 25,327$ 26,525$ 28,168$ 29,705$ 30,895$ Personal income1 (in thousands) 546,937$ 587,343$ 631,639$ 681,936$ 689,608$ Debt as percentage of personal income 10.46% 9.59% 8.80% 8.16% 7.97% Population2 21,595 22,143 22,424 22,957 22,321 Total debt per capita 2,649 2,545 2,479 2,423 2,463 Taxable Assessed value3 1,655,780,817 1,815,854,715 1,937,251,820 2,178,986,207 2,400,311,000 Total Debt as % of assessed value 3.48% 3.12% 2.89% 2.57% 2.30% Continued
EXHIBIT A
184
City of Marina
Total Outstanding Debt
Last Ten Fiscal Years
Governmental Activities:
General obligation library refunding bonds
Pension obligation bonds
Total General Obligation Bonds
Revenue bonds - Abrams-B Housing
Total Bonded Indebtedness
Certificates of participation - Measure X
Leases
Subscription liabilities
Total Governmental Activities
Business-type Activities:
Promissory note - Preston Park Housing
Total Debt
Per Capita income1
Personal income1 (in thousands)
Debt as percentage of personal income
Population2
Total debt per capita
Taxable Assessed value3
Total Debt as % of assessed value
TABLE 13
2021 2022 2023 2024 2025
6,710,000$ 6,430,000$ 6,135,000$ 5,820,000$ 5,480,000$ - - - - - 6,710,000 6,430,000 6,135,000 5,820,000 5,480,000 9,565,000 9,115,000 8,650,000 8,175,000 7,685,000 16,275,000 15,545,000 14,785,000 13,995,000 13,165,000 - - 11,480,638 11,206,861 10,923,084 596,341 609,858 759,644 571,560 667,352 - - 636,214 398,217 690,324 18,452,621 16,154,858 27,661,496 26,171,638 25,445,760 35,950,000 35,950,000 35,950,000 35,950,000 35,950,000 54,402,621$ 52,104,858$ 63,611,496$ 62,121,638$ 61,395,760$ 33,348$ 38,304$ 44,678$ 50,025$ 38,081$ 730,984$ 821,890$ 985,949$ 1,135,320$ 879,156$
7.44% 7.92% 0.00% 5.47% 6.98%
21,920 21,457 22,068 22,695 23,086 2,482 3,033 2,883 2,737 2,659 2,614,034,976 2,853,171,334 3,153,911,885 3,550,463,421 3,818,101,986
2.09% 2.29% 0.00% 1.75% 1.61%
Concluded
Source: City of Marina Audited Financial Statements
Notes:
(-) No data available
1 MuniServices LLC (for 2018 estimated 2% increase from prior year) - Personal Income calculated by multiplying per capita income by total population (see 2) 2 California Department of Finance
3 Monterey County Tax Rate Books, as detailed by MuniServices LLC (see Table 11)
EXHIBIT A
185
City of Marina TABLE 14
Bonded Debt
Last Ten Fiscal Years
3 3 3
Less:
Fiscal Restricted Net G.O. Debt
Year Total Cash and General as a % G.O. Debt Taxable
Ended Bonded Revenue Obligation of Assessed Per Assessed June 30 Debt Bonds Bonded Debt Value Capita Value1
Population2
2016 20,005,000$ 11,465,000$ 8,540,000$ 0.52% 395 1,642,092,991$ 21,595 2017 19,105,000 11,275,000 7,830,000 0.43% 354 1,803,719,945 22,143 2018 18,395,000 11,226,325 7,168,675 0.37% 320 1,924,857,463 22,424 2019 17,630,000 10,854,768 6,775,232 0.31% 295 2,168,132,130 22,957 2020 16,975,000 10,418,458 6,556,542 0.28% 294 2,385,745,200 22,321 2021 16,275,000 10,055,836 6,219,164 0.24% 284 2,599,147,176 21,920 2022 15,545,000 9,568,259 5,976,741 0.21% 279 2,838,045,534 21,457 2023 14,785,000 9,122,393 5,662,607 0.18% 257 3,153,911,885 22,068 2024 13,995,000 8,724,404 5,270,596 0.15% 232 3,550,463,421 22,695 2025 13,165,000 8,324,206 4,840,794 0.13% 210 3,818,101,986 23,086 Source: 1 Monterey County Auditor-Controller Tax Rate Book 2 California Department of Finance mid-fiscal year (e.g. 2008 population @ 1/1/2008) 3 City of Marina Audited Financial Statements
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
General Obligation Bonded Debt Outstanding
EXHIBIT A
186
City of Marina TABLE 15
Direct and Overlapping Debt
Fiscal Year 2024-25
2024-245Assessed Valuation: 3,818,101,986$
City’s Share
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: Total Debt % Applicable (1) of Debt Monterey County Water Resources Agency, Zone No. 2 C 16,990,000$ 4.126% 701,007$ Hartnell Joint Community College District 233,349,103 0.070% 163,344 Monterey Peninsula Community College District 170,860,629 7.332% 12,527,501 Monterey Peninsula Unified School District 310,691,406 20.101% 62,452,080 North Monterey County Unified School District 24,410,000 0.290% 70,789 City of Marina 5,480,000 100.000% 5,480,000
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT 81,394,722$ DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Monterey County General Fund Obligations 100,145,000$ 4.13% 4,131,983$ Monterey County Office of Education General Fund Obligations 36,301,000 4.13% 1,497,779 North Monterey County Unified School District Certificates of Participation 3,429,257 0.29% 9,945 City of Marina Long-Term Debt (Gov't Activities) 19,965,760 100.00% 19,965,760 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 25,605,467$ OVERLAPPING TAX INCREMENT DEBT (Successor Agencies): 57,150,000$ 70.437 - 100% 49,719,340$ TOTAL DIRECT DEBT 25,445,760$
TOTAL OVERLAPPING DEBT 131,273,768$
COMBINED TOTAL DEBT 156,719,528$ (2)
Ratios to 2024-25 Assessed Valuation:
Direct Debt 0.14%
Total Direct and Overlapping Tax and Assessment Debt 2.13% Total Direct Debt 0.67%
Net Combined Total Debt 4.10%
Ratios to Redevelopment Successor Agency Incremental Valuation:
Total Overlapping Tax Increment Debt 2.80%
Source: Muniservices, LLC / Neumo
California Municipal Statistics, Inc.
Notes:
(2) Excludes tax and revenue anticipation notes, enterprise revenue, and mortgage revenue. (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.
EXHIBIT A
187
City of Marina TABLE 16
Legal Debt Margin Information
Last Ten Fiscal Years
Fiscal Year Taxable Property
Assessed Value (1)
Legal Debt
Limit (2)
Total Net Debt
Applicable to
Limit
Legal Debt
Margin
Total Net Debt
Applicable to Limit as a
Percentage of Limit
2016 1,655,780,817 248,367,123 8,540,000 239,827,123 3.44% 2017 1,815,854,715 272,378,207 7,830,000 264,548,207 2.87% 2018 1,937,251,820 290,587,773 7,168,675 283,419,098 2.47% 2019 2,178,986,207 326,847,931 6,775,232 320,072,699 2.07% 2020 2,400,311,000 360,046,650 6,556,542 353,490,108 1.82% 2021 2,614,034,976 392,105,246 6,219,164 385,886,082 1.59% 2022 2,853,171,334 427,975,700 5,976,741 421,998,959 1.40% 2023 3,153,911,885 473,086,783 5,662,607 467,424,176 1.20% 2024 3,550,463,421 532,569,513 5,270,596 527,298,917 0.99% 2025 3,818,101,986 572,715,298 4,840,794 567,874,504 0.85% (1) Sources: Monterey County Assessor data; and HdL, Coren & Cone (2) 15% of the Property Assessed Value per California Governmental Code Section 43605
EXHIBIT A
188
City of Marina TABLE 17
Demographic and Economic Statistics
Last Ten Fiscal Years
Fiscal Year
Ended
June 30,
Population
(1)
Personal
Income (2)
(in thousands)
Per Capita
Personal
Income (2)
Median
Age (4)
Public School
Enrollment (5)
County
Unemployment
Rate (3)
City
Unemployment
Rate (3)
County
Population
(1)
2016 20,982 500,362 23,847 36.5 10,633 8.1% 6.1% 425,413 2017 21,528 520,135 24,160 36.9 10,732 7.6% 5.7% 442,365 2018 22,424 552,147 24,623 36.9 10,685 9.4% 3.1% 443,281 2019 22,957 577,618 25,160 36.8 10,658 4.7% 2.6% 445,414 2020 22,321 641,463 28,738 34.9 10,526 16.8% 19.3% 441,143 2021 21,920 666,795 30,419 33.9 9,994 10.8% 10.2% 437,318 2022 21,457 717,077 33,419 34.4 9,909 4.4% 2.1% 433,716 2023 22,068 769,247 34,858 34.9 9,809 6.3% 3.1% 430,368 2024 22,695 863,551 38,050 36.0 9,836 5.7% 3.3% 437,614 2025 23,086 879,156 38,081 36.7 9,949 7.3% 4.0% 439,035 (5) Student Enrollment reflects the total number of students enrolled in the Monterey Peninsula Unified School District.
Other school districts within the City are not accounted for in this statistic. (3) Unemployment Data is provided by the EDD's Bureau of Labor Statistics Department. (4) Data provided by the United States Census Data Sets Tables.
Source: HdL Companies and additional resources listed below. (1) Population Projections are provided by the California Department of Finance Projections. (2) US Census Bureau, American Community Survey (restated from prior year for updated census projections and HdL data) -
5,000
10,000
15,000
20,000
25,000
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Population Trends
EXHIBIT A
189
City of Marina TABLE 18
Principal Employers
Last Fiscal Year and Nine Years Ago (1)
Business Name
Number of
Employees
Percent of
Total
Employment
Number of
Employees
Percent of
Total
Employment
Monterey Peninsula Unified School District - Marina Locations 315 2.19% 183 1.51% Walmart Supercenter 238 1.65% 189 1.56%
Target Store 147 1.02% - -
Monterey Regional Waste Management District 131 0.91% 130 1.07% City of Marina (2)
126 0.88% 80 0.66%
Monterey One Water Treatment Plant (3)
102 0.71% 76 0.63%
Scudder Roofing Company 100 0.69% 74 0.61%
REI - Recreational Equipment Inc. 41 0.28% 12 0.10%
Kohl's 39 0.27% 72 0.60%
Montage Medical Group - Marina 30 0.21% - - Del Monte Meat CO - - 53 0.44% Michaels Catering and Wildtime Deli (aka Chef's Fancy LLC) - - 50 0.41% Total Top 10 Employers 1,269 8.81% 919 7.60%
Total City Labor Force (4)
14,400 12,100
Notes:
(1) Fiscal Year 2016-17 was the first year the City prepared a Statistical Section. Data for 2015-16 is not available. (2) The amount reflects the authorized full-time equivalent positions; and includes City Council members. (3) Includes Marina and Monterey location.
(4) Total City Labor Force provided by EDD Labor Force Data. 2016-17 (1) 2024-25
Source: MuniServices, LLC / Avenu Insights & Analytics Results based on direct correspondence with city’s local businesses.
EXHIBIT A
190
City of Marina TABLE 19
Number of City Employees by Department (1)
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Departments:
General Government (2) 15.3 16.8 17.0 17.0 17.0 17.0 17.0 19.0 20.0 20.0 Public Safety 51.0 51.0 51.0 51.0 56.0 56.0 57.0 57.0 60.0 63.0 Public Works 14.0 14.0 16.0 16.0 18.0 18.0 18.0 19.0 23.0 24.0 Recreation 6.0 6.0 6.0 6.0 6.0 6.0 6.5 6.5 6.5 7.0
Community Development 6.8 7.8 8.3 8.5 10.0 10.0 10.0 10.0 10.0 10.0 Business-type Activities:
Airport 2.0 1.0 1.0 1.0 1.0 1.0 1.0 2.0 2.0 2.0
Total 95.1 96.6 99.3 99.5 108.0 108.0 109.5 113.5 121.5 126.0 (1) References authorized and funded full-time equivalent (FTE) regular positions. (2) Includes four Council Members and Mayor.
0.0 20.0
40.0 60.0
80.0 100.0
120.0
140.0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Total Number of City Employ ees
EXHIBIT A
191
City of Marina TABLE 20
Capital Asset Statistics By Function
Last Ten Fiscal Years
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function:
General government facilities
City Hall 1 1 1 1 1 1 1 1 1 1 City Hall Annex 1 1 1 1 1 1 1 1 1 1 Council Chambers 1 1 1 1 1 1 1 1 1 1 Public Safety
Police stations 1 1 1 1 1 1 1 1 1 1 Fire stations 2 2 2 2 2 2 2 2 2 2 Public Works
Miles of paved streets 140 140 140 140 140 140 140 140 140 150 Parking lots 5 5 5 5 5 5 5 5 5 5 Street lights (1) 1,076 1,079 1,079 1,079 1,079 1,079 1,201 1,252 1,252 1,209 Fleet vehicles (city-wide) 55 56 60 66 61 65 66 68 68 70 Fueling Station 1 1 1 1 1 1 1 1 1 1 Electric Charging Station - - - - - - - - - 1 Recreation
Parks 4 4 4 4 4 4 4 4 4 5 Playgrounds 4 4 4 4 4 4 4 4 4 4 Community centers/facilities 3 3 3 3 3 3 3 3 3 3 Equestrian Center 1 1 1 1 1 1 1 1 1 1 Airport
Number of buildings 1 1 1 1 1 1 1 1 1 1 Fueling Station 1 1 1 1 1 1 1 1 1 1 Runways 2 2 2 2 2 2 2 2 2 2 Hangers 40 40 40 40 40 40 40 40 40 40 Source: City of Marina Departments
(1) Reflects the number of street lights listed on the City's electricity statements.
For Fiscal Year Ended June 30
EXHIBIT A
192
City of Marina TABLE 21
Operating Indicators By Function
Last Ten Fiscal Years (1)
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Function:
General Government
Number of approved resolutions - - - 150 162 148 153 139 149 182 Number of approved ordinances - - - 7 5 9 3 10 13 15 Police (2)
Calls for service - - - 26,508 23,505 27,483 - 25,455 25,816 22,789 Fire
Calls for Service - Fires - - - 65 58 65 60 80 43 61 Calls for Service - Medical Aid - - - 1,642 1,646 1,754 1,843 2,037 1,566 2,215 Calls for Service - Other - - - 727 972 673 729 916 1,180 858 Recreation (3)
Park & facility rentals - - - - - - - - 52 79 Recreation memberships - - - - - - - - 272 438 Special events - - - - - - - - 8 10 Public Works (4)
Work orders - routine maintenance - - - - - - - - 711 900 Work orders - special assignments - - - - - - - - 53 150 Community Development
Building Permits - New Construction - - - - 63 135 270 171 127 148 Building Permits - Other - - - - 195 645 755 621 410 731 Airport
Active building leases - - - - 14 15 14 12 10 10 Active hangar leases - - - - 21 18 42 42 42 40 Active ground and tie-down leases - - - - 5 7 5 6 17 25 Notes:
(1) This is the first year that the City is preparing this table. Five years of data provided, unless noted. Additional years and metrics to be added in the next fiscal year.
(2) The Police Department recently implemented new software. Additional implementation processes are pending.
The data represents historical reports; and information from the County 9-1-1 Center, which has a limited retention policy. (3) In Fiscal Year 23/24, the City implemented CivicRec recreation software. The 2024 statistics reflect manually tracked data, as well as as general ledger recreation activity.
(4) The Public Works Department is in the process of implementing an asset management/work order software. The data represents manually tracked work orders. Stronger metrics will be available in Fiscal Year 2026.
Source: City of Marina Departments
For Fiscal Year Ended June 30
EXHIBIT A
193
This page is intentionally blank
EXHIBIT A
194
INDEPENDENT AUDITORS REPORT
IN ACCORDANCE WITH
GENERALY ACCEPTED GOVERNMENTAL
AUDITING STANARDS
EXHIBIT A
195
16450 Monterey Road, Ste. 5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S 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
To the Honorable Mayor and Members of the City Council
of the City of Marina
Marina, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the City of Marina (the “City”) as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 10, 2025.
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) to determine the 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 over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses and significant deficiencies may exist that were not identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free of 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 determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not
EXHIBIT A
196
16450 Monterey Road, Ste. 5, Morgan Hill, CA 95037
Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
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.
Morgan Hill, California
December 10, 2025
EXHIBIT A
197
Chavan & Associates, LLP
Certified Public Accountants
16450 Monterey Rd, Suite 5
Morgan Hill, CA 95037
CITY OF MARINA
TRANS
PORTATION SAFETY AND
INVESTMENT PLAN ACCOUNT FUNDS
WIT
H INDEPENDENT
AUDITORS’ REPORT
JUNE
30, 2025
* *
*
EXHIBIT B
198
CITY OF MARINA
Transportation Safety and Investment Plan Account Funds June 30, 2025
Table of Contents
Page No.
FINANCIAL SECTION:
Independent Auditors’ Report ........................................................................................... 1 - 3 Financial Statements:
Balance Sheet .............................................................................................................. 4 Statement of Revenue, Expenditures and Changes in Fund Balance ......................... 5 Notes to the Financial Statements ............................................................................... 6 - 8
SUPPLEMENTARY INFORMATION:
Statement of Revenues, Expenditures, and
Changes in Fund Balance – Budget and Actual .......................................................... 9
OTHER INDEPENDENT AUDITORS’ REPORT:
Independent Auditors' on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statement Performed in Accordance with Government Auditing Standards ............................... 10 - 11
Independent Auditor’s Report on Compliance with TAMC Ordinance No. 2016-01 and the Measure X Master Programs Funding Agreement ................... 12 - 13
FINDINGS AND RECOMMENDATIONS:
Schedule of Findings and Recommendations ................................................................... 14
EXHIBIT B
199
FINANCIAL SECTION
EXHIBIT B
200
Page | 1 16450 Monterey Rd , Suite 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITORS’ REPORT
City Council
City of Marina
Marina, California
Report on the Financial Statements
Opinions
We have audited the accompanying financial statements of the City of Marina Transportation Safety and Investment Plan Account Funds (Measure X Funds) , as of and for the fiscal year ended June 30, 2025, and the related notes to the financial statements, as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the City’s Transportation Safety and Investment Plan Account Funds , as of June 30, 2025, and the changes in financial position 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.
Other Matters
As discussed in Note 1, the financial statements present only the Transportation Safety and Investment Plan Account Funds and do not purport to, and do not, present fairly the financial position of the City of Marina , as of June 30, 2025, the changes in its financial position, or, where applicable, its cash flows for the fiscal year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
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.
EXHIBIT B
201
Page | 2 16450 Monterey Rd , Suite 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
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.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements 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 GAS, 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.
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.
Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the Transportation Safety and Investment Plan Account Funds financial statements that collectively comprise the City of Marina Transportation Safety and Investment Plan Account Funds financial statements. The accompanying supplemental information – Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual on page 9 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental schedule is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the
EXHIBIT B
202
Page | 3 16450 Monterey Rd , Suite 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the City’s Transportation Safety and Investment Plan Account Funds 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 supplemental schedule – Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 5, 2025, on our consideration of the City of Marina Traffic Safety and Investment Plan Account Funds’ internal control over financial reporting and on our tests of its compliance with the requirements described in the TAMC’s Ordinance No. 2016 -01 and in the Agreement between TAMC and the City and other matters for the fiscal year ended June 30, 2025. The purpose of that report is solely to report our opinion on compliance and to describe the scope of our testing of internal control over financial reporting and the results of that testing, and not to provide an opinion on the effectiveness of the City of Marina Traffic Safety and Investment Plan Account Funds’ internal control over financial reporting.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Marina Traffic Safety and Investment Plan Account Funds ’ compliance.
December 5, 2025
Morgan Hill, California
EXHIBIT B
203
City of Marina
Transportation Safety and Investment Plan Accounting Fund Balance Sheet
June 30, 2025
4 Total
ASSETS
Cash and Investments 652,337$ 10,210,501$ 10,862,838$ Restricted Cash and Investments - 9,170,558 9,170,558 Receivables:
Accounts 535,969 - 535,969 Interest 2,027 62,764 64,791 Total Assets 1,190,333$ 19,443,823$ 20,634,156$
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts Payable -$ 3,549,418$ 3,549,418$ Total Liabilities - 3,549,418 3,549,418 Fund Balance:
Restricted 1,190,333 15,894,405 17,084,738 Total Fund Balances 1,190,333 15,894,405 17,084,738 Total Liabilities and Fund Balance 1,190,333$ 19,443,823$ 20,634,156$ The accompanying notes are an integral part of these financial statements Transportation
Safety and
Investment Fund
Measure X -
Capital Projects
Fund
EXHIBIT B
204
City of Marina
Transportation Safety and Investment Plan Accounting Fund Statement of Revenues, Expenditures
and Changes in Fund Balance
June 30, 2025
5 Transportation
Safety and
Investment
Measure X -
Capital Projects
Fund Total
REVENUES
Transportation Safety and Investment Plan Account Revenue 1,093,808$ -$ 1,093,808$ Use of Money and Property 6,808 491,933 498,741 Total Revenues 1,100,616 491,933 1,592,549
EXPENDITURES
Current:
Public Works 9,877 - 9,877
Capital Outlay - 5,009,674 5,009,674
Total Expenditures 9,877 5,009,674 5,019,551 Excess (Deficiency) of Revenues over Expenditures 1,090,739 (4,517,741) (3,427,002)
OTHER FINANCING SOURCES (USES)
Transfers In - 11,793,097 11,793,097 Transfers Out (945,575) - (945,575) Total Other Financing Sources (Uses) (945,575) 11,793,097 10,847,522 Net Change in Fund Balances 145,164 7,275,356 7,420,520 Fund Balance Beginning 1,045,169 8,619,049 9,664,218 Fund Balance Ending 1,190,333$ 15,894,405$ 17,084,738$ The accompanying notes are an integral part of these financial statements
EXHIBIT B
205
City of Marina
Transportation Safety and Investment Plan Account Fund
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2025
6 NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The Transportation Safety and Investment Plan Account Funds of the City of Marina (the City) is a governmental fund type. Governmental funds are accounted for using a current financial resources measurement focus. The application of this measurement focus provides that, in general, only current assets and current liabilities are present on the balance sheet. Operating statements of these funds present revenues and expenditures.
The modified accrual basis of accounting is used for the Transportation Safety and Investment Plan Account Funds . Under the modified accrual basis of accounting, revenues are recognized when they become susceptible to accrual (i.e., both measurable and available). Measurable means that the amount of the transaction can be determined. Available means the funds are collectible within the current period or soon enough thereafter to be used 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 of governmental funds are generally recognized when the related fund liability is incurred.
Reporting Entity
The Transportation Safety and Investment Plan Account Fund s from the Transportation Agency for Monterey County was approved on November 8, 2016. The revenue from the sales tax measure will be used to fund transportation safety and mobility projects in Monterey County. Expenditures are restricted to road improvements, pothole repairs, street and road maintenance, traffic deduction and regional safety, mobility and walkability.
The Transportation Safety and Investment Plan Fund financial statements and related accounting policies of the City conform with generally accepted accounting principles applicable to governments in the United States of America. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.
The Transportation Safety and Investment Fund accounts for the City’s Measure X sales tax funds received and expended to invest in roads throughout Monterey County. The Measure X Capital Projects Fund is used to account for major capital projects related to transportation and safety. The financial statements present only the Transportation Safety and Investment Plan Account Fund and Measure X Capital Projects Fund and do not purport to, and do not present, the City’s financial position and changes in financial position. The City’s basic financial statements are available from the Finance Department at City’s address and website.
NOTE 2 – CASH DEPOSITS
The City follows the practice of pooling cash and investments for all funds (including the Transportation Safety and Investment Plan Account Fund) under its direct daily control. Interest earned on pooled cash and investments is allocated periodically to the various funds based on average cash balances. Detailed disclosure regarding the City’s investments of cash is included in the notes to City’s basic financial statements.
EXHIBIT B
206
City of Marina
Transportation Safety and Investment Plan Account Fund
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2025
7 NOTE 3 – MAINTENANCE OF EFFORT
The Measure X Master Programs Funding Agreement between the City and the Transportation Agency for Monterey County , as amended, requires that the City must expend each fiscal year from its general fund for street and highway purposes an amount not less than the annual average of its expenditures from its general fund during the 2009- 10, 2010- 11, and 2011- 12 fiscal years, but not less than what was expended in 2016- 17 (when Measure X passed), as reported to the Controller pursuant to Streets and Highways Code section 2151 (“Maintenance of Effort”). This baseline amount will be indexed annually to the Engineering News Record construction index.
The following eligible expenditures were made:
Total expenditures from the general fund for street and highway purposes for the fiscal year ended June 30, 2025 was $1,356,089. The City was in compliance with the Maintenance of Effort requirement of the Measure X Master Programs Funding Agreement between the City of Marina and the Transportation Agency for Monterey County.
Fiscal year ended June 30:
2010 262,149$
2011 201,
648
2012 265,396
Total 729,193$
Three-year average 243,064$
Fiscal year ended June 30, 2017 457,181$
Maintenance of effort baseline 457,181$
Engineering News Record construction index FY 2019/20 1.37% Engineering News Record construction index FY 2020/21 1.27% Engineering News Record construction index FY 2021/22 2.05% Engineering News Record construction index FY 2022/23 7.34% Engineering News Record construction index FY 2023/24 4.93% Engineering News Record construction index FY 2024/25 2.58% Index-adjusted maintenance of effort requirement 553,395$ Current year eligible expenditures 1,356,089$
Compliant (Yes or No) Yes
** Current expenditures must be >= 3 year avg or FY17 (year of inception)
EXHIBIT B
207
City of Marina
Transportation Safety and Investment Plan Account Fund
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2025
8 NOTE 4 – TRANSFERS TO/FROM OTHER FUNDS AND THE CITY
Transfers into the Measure X Capital Projects Fund during the fiscal year ended June 30, 2025:
Transfers From/To Description of Transfer Amo unt
Transportation Safety and Investment Fund XCCIP - XAPR1801 Project 170,000$ From the City:
General Fund XCCIP - XAPR1801 Project 1,000,000
RMRA
- SB1 Fund XCCIP - XAPR1801 Project 525,000
C.O.P Debt Services Fund XCCIP - XAPR1801 Project 10,098,097 To the City:
C.O.P Debt Services Fund COP Trust Transactions (775,575) Capital Projects Fund XCCIP - XAPR1801 Project (170,000) Total Transfers 10,847,522$
EXHIBIT B
208
SUPPLEMENTARY
INFORMATION
EXHIBIT B
209
City of Marina
Transportation Safety and Investment Plan Account Fund
Statement of Revenues, Expenditures, and
Changes in Fund Balance
Budget and Actual (GAAP Basis)
For the Fiscal Year Ended June 30, 2025
9 Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES
Transportation Safety and Investment Plan Account Revenue 950,000$ 1,000,000$ 1,093,808$ 93,808$ Use of Money and Property 1,000 2,000 6,808 4,808 Total Revenues 951,000 1,002,000 1,100,616 98,616
EXPENDITURES
Current:
Public Works - 5,100 9,877 (4,777) Total Expenditures - 5,100 9,877 (4,777) Excess (Deficiency) of Revenues over Expenditures 951,000 996,900 1,090,739 93,839
OTHER FINANCING SOURCES (USES)
Transfers in - - - - Transfers Out (945,575) (945,575) (945,575) - Total Other Financing Sources (Uses) (945,575) (945,575) (945,575) - Net Change in Fund Balance 5,425 51,325 145,164 93,839 Fund Balance Beginning 1,045,169 1,045,169 1,045,169 - Fund Balance Ending 1,050,594 $ 1,096,494$ 1,190,333$ 93,839$ Budgeted Amounts
The City employs budget control by object codes and by individual appropriation accounts. Budgets are prepared on the modified accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America as prescribed by the Governmental Accounting Standards Board. The budgets are revised during the year by the City Council to provide for revised priorities. Expenditures cannot legallyexceed appropriations by major object code. The originally adopted and final revised budgets for the Measure X Special Revenue Fund are presented as Required Supplementary Information. The basis of budgeting is the same as GAAP. The expenditures noted above in excess of appropriations were covered by fund balance, appropriations available in other categories, or revenues in excess of budget.
EXHIBIT B
210
OTHER INDEPENDENT
AUDITORS REPORT
EXHIBIT B
211
Page | 10 16450 Monterey Rd, Suite 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER
MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENT PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
City Council
City of Marina
Marina, California
We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Transportation Safety and Investment Plan Account Funds (Measure X Funds) of City of Marina (the “City”) as of and for the fiscal year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise City of Marina’s Measure X Funds financial statements, and have issued our report thereon dated December 5, 2025.
Report on Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City of Marina ’s internal control over financial reporting (internal control) as a basis for designing 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 of Marina ’s internal control.
Accordingly, we do not express an opinion on the effectiveness of the City of Marina ’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 misstatement 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 City’s financial statement 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 over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting 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 of Marina ’s Measure X Fund 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
EXHIBIT B
212
Page | 11 16450 Monterey Rd, Suite 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
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 City’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 City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
December 5, 2025
Morgan Hill, California
EXHIBIT B
213
Page | 12 16450 Monterey Rd, Suite 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH
TAMC ORDINANCE NO. 2016-01 AND THE MEASURE X
MASTER PROGRAMS FUNDING AGREEMENT
City Council
City of Marina
Marina, California
Report on Compliance with the TAMC Ordinance No. 2016-01
Opinion
We have audited the City of Marina ’s (the “City”) Transportation Safety and Investment Plan Account Funds ’ (the City’s Measure X Fund s) compliance with the types of compliance requirements described in the Transportation Agency’s for Monterey County’s (TAMC) Ordinance No. 2016-01 and the Measure X Master Programs Funding Agreement (the Agreement) between TAMC and the City, applicable for the fiscal year ended June 30, 2025.
In our opinion, the funds allocated to and received by the City’s Measure X Funds, complied, in all material respects, with the compliance requirements referred to above that are applicable in accordance to the compliance requirements described in the Transportation Agency for Monterey County’s (TAMC) Ordinance No. 2016-01 and in the Measure X Master Programs Funding Agreement between TAMC and the City for the fiscal year ended June 30, 2025.
Basis for Opinion on Compliance with the TAMC Ordinance No. 2016-01 Requirements
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, and in accordance with the compliance requirements described in the Transportation Agency for Monterey County’s (TAMC) Ordinance No. 2016 -01 and in the Measure X Master Programs Funding Agreement (the Agreement) between TAMC and the City. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of Compliance 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 opinion on compliance with the compliance requirements referred to above. However, our audit does not provide a legal determination of the City’s compliance.
Management’s Responsibility for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to the Transportation Safety and Investment Plan Account Funds.
EXHIBIT B
214
Page | 13 16450 Monterey Rd, Suite 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Auditor’s Responsibilities for the Audit of Compliance
Our responsibility is to express an opinion on the City’s compliance based on our audit in accordance with the compliance requirements described in the Transportation Agency for Monterey County’s (TAMC) Ordinance No. 2016-01 and in the Measure X Master Programs Funding Agreement (the Agreement) between TAMC and the City. The Measure X Master Programs Funding Agreement requires that the independent auditor shall perform at least the following tasks:
(1) determine whether the recipient expended all Measure X funds received in compliance with Measure X, the Measure X Investment Plan, and the Policies & Project Descriptions, as they may be adopted or amended by TAMC from time to time, and the Agreement, (2) determine whether the Measure X revenues received and expended were accounted for and tracked in its own separate budget and fund titled “Transportation Safety & Investment Plan Account” and were not be comingled with any other funds and that the accounting system provides adequate internal controls and audit trails to facilitate an annual compliance audit for each fund type and the respective usage and application of said funds, and (3) determine whether the City met the Maintenance of Effort requirements imposed by Measure X and State law. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the compliance requirements referred to above that could have a direct and material effect on the state laws and regulations applicable to the City occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
Purpose of this Report
The purpose of this report is solely to report our opinion on compliance with the TAMC Ordinance No. 2016-01 and to describe the scope of our testing over compliance and the results of that testing.
This report is intended solely for the information and use of City Council, management of the Transportation Agency for Monterey County and for filing with the appropriate regulatory agencies and is not intended to be and should not be used by anyone other than these specified parties.
December 5, 2025
Morgan Hill, California
EXHIBIT B
215
FINDINGS AND
RECOMMENDATIONS
EXHIBIT B
216
City of Marina
Transportation Safety and Investment Plan Account Fund
Schedule of Findings and Recommendations
For the Fiscal Year Ended June 30, 2025
14 None reported.
EXHIBIT B
217
Page | 1 16450 Monterey Road, Ste 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Governance Audit Letter
Fiscal Year Ended June 30, 2025
To the City Council of the
City of Marina
We have audited the basic financial statements of the City of Marina as of and for the year ended June 30, 2025, and have issued our report thereon dated December 10, 2025. Professional standards require that we advise you of the following matters relating to our audit.
Our Responsibility under Generally Accepted Auditing Standards and Government Auditing Standards
As communicated in our engagement letter, our responsibility, as described by professional standards, is to form and express an opinion(s) about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America.
Our audit of the financial statements does not relieve you or management of your respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing 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 over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City of Marina solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.
Other Information in Documents Containing Audited Financial Statements Pursuant to professional standards, our responsibility as auditors for other information in documents containing City of Marina’s audited financial statements does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact.
Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.
EXHIBIT C
218
Page | 2 16450 Monterey Road, Ste 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated with management.
Compliance with All Ethics Requirements Regarding Independence The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence.
Significant Risks Identified
We did not identify any significant risks that required special audit consideration.
Qualitative Aspects of the City’s Significant Accounting Practices Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City of Marina is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during June 30, 2025. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.
The most sensitive accounting estimates affect ing the financial statements include accumulated depreciation, depreciation expense, market value adjustments related to investments, actuarial assumptions included in employee retirement plans that impact pension and other postemployment balances reported in the financial statements, and net present value calculations for right of use assets and leases.
EXHIBIT C
219
Page | 3 16450 Monterey Road, Ste 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
We evaluated the key factors and assumptions used to develop the identified estimates and determined that it is reasonable in relation to the basic financial statements taken as a whole and in relation to the applicable opinion units.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting City of Marina’s financial statements relate to cash and investments, capital assets, pensions and long-term liabilities.
Significant Unusual Transactions
For purposes of this communication, professional standards require us to communicate to you significant unusual transactions identified during our audit. No significant unusual transactions were identified as a result of our audit procedures that required the attention of management.
Identified or Suspected Fraud
We did not identify nor obtain information that indicates that fraud may have occurred.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit. There were no uncorrected financial statement misstatements identified.
In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. There were no material misstatements that we identified as a result of our audit procedures.
EXHIBIT C
220
Page | 4 16450 Monterey Road, Ste 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City of Marina’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.
Circumstances that Affect the Form and Content of the Auditor’s Report For purposes of this letter, professional standards require that we communicate any circumstances that affect the form and content of our auditor’s report. There were no circumstances that affect the form and content of our auditor’s report.
Representations Requested from Management
We have requested certain written representations from management, which are included in the attached letter dated December 10, 2025.
Management’s Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City of Marina, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the City, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the City of Marina’s auditors.
This report is intended solely for the information and use of the Board and management of the City of Marina and is not intended to be and should not be used by anyone other than these specified parties.
December 10, 2025
Morgan Hill, California
EXHIBIT C
221
City of Marina
211 HILLCREST AVENUE
December 10, 2025
Chavan & Associates, LLP
16450 Monterey Road, Suite 5
Morgan Hill, CA 95037
This representation letter is provided in connection with your audit of the basic financial statements of the City of Marina (the City) as of June 30, 2025 and for the year then ended, and the related notes to the financial statements, for the purpose of expressing opinions on whether the basic financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows, where applicable, of the various opinion units of the City of Marina in accordance with accounting principles generally accepted for governments in the United States of America (U.S. GAAP).
Certain representations in this letter are described as being limited to matters that are material. Items are considered material, regardless of size, if they involve an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would be changed or influenced by the omission or misstatement.
We confirm that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves as of December 10, 2025:
Financial Statements
• We have fulfilled our responsibilities, as set out in the terms of the audit engagement letter, for the preparation and fair presentation of the financial statements of the various opinion units referred to above in accordance with U.S. GAAP.
• We acknowledge our responsibility 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. • We acknowledge our responsibility for the design, implementation, and maintenance of internal control to prevent and detect fraud.
• We acknowledge our responsibility for compliance with the laws, regulations, and provisions of contracts and grant agreements.
• We have reviewed, approved, and taken responsibility for the financial statements and related notes.
• We have a process to track the status of audit findings and recommendations, as applicable.
EXHIBIT C
222
• We have identified and communicated to you all previous audits, attestation engagements, and other studies related to the audit objectives and whether related recommendations have been implemented.
• Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable.
• Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of U.S. GAAP, as applicable. • All events subsequent to the date of the financial statements and for which U.S. GAAP requires adjustment or disclosure have been adjusted or disclosed. • We have reviewed and approved the various adjusting journal entries that were proposed by you for recording in our books and records and reflected in the financial statements. • The effects of uncorrected misstatements summarized and aggregated by you during the current engagement are immaterial, both individually and in the aggregate, to the applicable opinion units and to the financial statements as a whole. o There were no uncorrected misstatements to be evaluated. • The effects of all known actual or possible litigation and claims have been accounted for and disclosed in accordance with U.S. GAAP, if applicable.
• All component units, as well as joint ventures with an equity interest, are included and other joint ventures and related organizations are properly disclosed, if applicable. • All funds and activities are properly classified.
• All funds that meet the quantitative criteria in GASB Statement No. 34, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments, GASB Statement No. 37, Basic Financial Statements—and Management's Discussion and Analysis—for State and Local Governments: Omnibus as amended, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, for presentation as major are identified and presented as such and all other funds that are presented as major are considered important to financial statement users.
• All components of net position, nonspendable fund balance, and restricted, committed, assigned, and unassigned fund balance are properly classified and, if applicable, approved. • Our policy regarding whether to first apply restricted or unrestricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position/fund balance are available is appropriately disclosed and net position/fund balance is properly recognized under the policy.
• All revenues within the statement of activities have been properly classified as program revenues, general revenues, contributions to term or permanent endowments, or contributions to permanent fund principal.
• All expenses have been properly classified in or allocated to functions and programs in the statement of activities, and allocations, if any, have been made on a reasonable basis. • All interfund and intra-entity transactions and balances have been properly classified and reported.
EXHIBIT C
223
• Special items and extraordinary items have been properly classified and reported, if applicable.
• Deposit and investment risks have been properly and fully disclosed. • Capital assets, including infrastructure assets, are properly capitalized, reported, and if applicable, depreciated.
• All required supplementary information is measured and presented within the prescribed guidelines.
• With regard to investments and other instruments reported at fair value:
o The underlying assumptions are reasonable and they appropriately reflect management’s intent and ability to carry out its stated courses of action. o The measurement methods and related assumptions used in determining fair value are appropriate in the circumstances and have been consistently applied. o The disclosures related to fair values are complete, adequate, and in accordance with U.S. GAAP.
o There are no subsequent events that require adjustments to the fair value measurements and disclosures included in the financial statements. • With respect to the nonattest service(s), we have performed the following:
o Made all management decisions and performed all management functions; o Assigned a competent individual to oversee the services; o Evaluate the adequacy of the services performed;
o Evaluated and accepted responsibility for the result of the service performed; and o Established and maintained internal controls, including monitoring ongoing activities. • Arrangements with financial institutions involving compensating balances or other arrangements involving restrictions on cash balances, line of credit, or similar arrangements have been properly disclosed.
• We believe that the actuarial assumptions and methods used to measure pension and other postemployment benefit liabilities and costs for financial accounting purposes are appropriate in the circumstances.
Supplementary Information in Relation to the Financial Statements as a Whole With respect to the supplementary information accompanying the financial statements (as identified in the audit report table of contents):
• We acknowledge our responsibility for the presentation of the supplementary information in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), Governmental Accounting Standards Board (GASB) and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Regulations, Cost Principles, and Audit Requirements for Federal Awards.
• We believe the supplementary information including its form and content, is fairly presented in accordance with U.S. GAAP, GASB, federal guidelines, and state guidelines.
EXHIBIT C
224
• The methods of measurement or presentation have not changed from those used in the prior period except for the effects from the implementation of new GASB statements as noted in the audit report and disclosures.
• When the supplementary information is not presented with the audited financial statements, management will make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by the entity of the supplementary information and the auditor’s report thereon. • We acknowledge our responsibility to include the auditor’s report on the supplementary information in any document containing the supplementary information and that indicates the auditor reported on such supplementary information.
• We acknowledge our responsibility to present the supplementary information with the audited financial statements or, if the supplementary information will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the supplementary information no later than the date of issuance by the entity of the supplementary information and the auditor’s report thereon.
Required Supplementary Information
With respect to the required supplementary information accompanying the financial statements (as identified in the audit report table of contents):
• We acknowledge our responsibility for the presentation of the required supplementary information in accordance with U.S. GAAP and GASB.
• We believe the required supplementary information, including its form and content, is measured and fairly presented in accordance with U.S. GAAP and GASB. • The methods of measurement or presentation have not changed from those used in the prior period except for the effects from the implementation of new GASB statements. • We believe the following significant assumptions or interpretations underlying the measurement or presentation of the pension and OPEB schedules, and the basis for our assumptions and interpretations, are reasonable and appropriate in the circumstances:
o Pension required supplementary information:
▪ Significant assumptions include the actuarial cost method, amortization method, amortization period, inflation rates, investment rate of return and mortality tables.
▪ The basis for these assumptions comes from information provided by CalPERS in their audited GASB 68 Accounting Valuation Reports and annual valuation reports used to determine the annual required contributions. o Other post-employment benefits required supplementary information:
▪ Significant assumptions include the actuarial cost method, amortization method, amortization period, inflation rates, investment rate of return, mortality tables, and healthcare cost trends rate.
▪ The basis for these assumptions comes from information provided by a consultants actuarial valuation report.
EXHIBIT C
225
Information Provided
• We have provided you with:
o Access to all information, of which we are aware that is relevant to the preparation and fair presentation of the financial statements of the various opinion units referred to above, such as records, documentation, meeting minutes, and other matters; o Additional information that you have requested from us for the purpose of the audit; and
o Unrestricted access to persons within the City from whom you determined it necessary to obtain audit evidence.
• All transactions have been recorded in the accounting records and are reflected in the financial statements.
• We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. • We have no knowledge of any fraud or suspected fraud that affects the City and involves:
o Management;
o Employees who have significant roles in internal control; or o Others where the fraud could have a material effect on the financial statements. • We have no knowledge of any allegations of fraud, or suspected fraud, affecting the City’s financial statements communicated by employees, former employees, vendors, regulators, or others.
• We are not aware of any pending or threatened litigation and claims whose effects should be considered when preparing the financial statements.
• We have disclosed to you the identity of the City’s related parties and all the related party relationships and transactions of which we are aware, as applicable. • There have been no communications from regulatory agencies concerning noncompliance with or deficiencies in accounting, internal control, or financial reporting practices. • The City of Marina has no plans or intentions that may materially affect the carrying value or classification of assets and liabilities.
• We have disclosed to you all guarantees, whether written or oral, under which the City of Marina is contingently liable, as applicable.
• We have disclosed to you all nonexchange financial guarantees, under which we are obligated and have declared liabilities and disclosed properly in accordance with GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, for those guarantees where it is more likely than not that the City will make a payment on any guarantee.
• For nonexchange financial guarantees where we have declared liabilities, the amount of the liability recognized is the discounted present value of the best estimate of the future outflows expected to be incurred as a result of the guarantee. Where there was no best estimate but a range of estimated future outflows has been established, we have recognized the minimum amount within the range.
EXHIBIT C
226
• We have disclosed to you all significant estimates and material concentrations known to management that are required to be disclosed in accordance with GASB Statement No. 62 (GASB-62), Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. Significant estimates are estimates at the balance sheet date that could change materially within the next year.
Concentrations refer to volumes of business, revenues, available sources of supply, or markets or geographic areas for which events could occur that would significantly disrupt normal finances within the next year.
• We have identified and disclosed to you the laws, regulations, and provisions of contracts and grant agreements that could have a direct and material effect on financial statement amounts, including legal and contractual provisions for reporting specific activities in separate funds. • There are no:
o Violations or possible violations of laws or regulations, or provisions of contracts or grant agreements whose effects should be considered for disclosure in the financial statements or as a basis for recording a loss contingency, including applicable budget laws and regulations.
o Unasserted claims or assessments that our lawyer has advised are probable of assertion and must be disclosed in accordance with GASB-62. o Other liabilities or gain or loss contingencies that are required to be accrued or disclosed by GASB-62.
o Continuing disclosure consent decree agreements or filings with the Securities and Exchange Commission and we have filed updates on a timely basis in accordance with the agreements (Rule 240, 15c2-12).
• The City of Marina has satisfactory title to all owned assets, and there are no liens or encumbrances on such assets nor has any asset or future revenue been pledged as collateral, except as disclosed to you.
• We have complied with all aspects of grant agreements and other contractual agreements that would have a material effect on the financial statements in the event of noncompliance.
Single Audit
With respect to federal awards:
• We are responsible for understanding and complying with and have complied with the requirements of Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (the Uniform Guidance), including requirements relating to preparation of the schedule of expenditures of federal awards, or we acknowledge our responsibility for presenting the schedule of expenditures of federal awards (SEFA) in accordance with the requirements of the Uniform Guidance and we believe the SEFA, including its form and content, is fairly presented in accordance with the Uniform Guidance. The methods of measurement or presentation of the SEFA have not changed from those used in the prior period and we have disclosed to you any significant assumptions and interpretations underlying the measurement or presentation of the SEFA.
EXHIBIT C
227
• If the SEFA is not presented with the audited financial statements, we will make the audited financial statements readily available to the intended users of the SEFA no later than the date we issue the SEFA and the auditor’s report thereon.
• We have identified and disclosed to you all of our government programs and related activities subject to the Uniform Guidance and included in the SEFA made during the audit period for all awards provided by federal agencies in the form of grants, federal cost-reimbursement contracts, loans, loan guarantees, property (including donated surplus property), cooperative agreements, interest subsidies, insurance, food commodities, direct appropriations, and other direct assistance.
• We are responsible for understanding and complying with, and have complied with, the requirements of laws, regulations, and the provisions of contracts and grant agreements related to each of our federal programs and have identified and disclosed to you the requirements of laws, regulations, and the provisions of contracts and grant agreements that are considered to have a direct and material effect on each major program. • We are responsible for establishing and maintaining, and have established and maintained, effective internal control over compliance requirements applicable to federal programs that provides reasonable assurance that we are managing our federal awards in compliance with laws, regulations, and the provisions of contracts and grant agreements that could have a material effect on our federal programs. We believe the internal control system is adequate and is functioning as intended.
• We have made available to you all contracts and grant agreements (including amendments, if any) and any other correspondence with federal agencies or pass-through entities relevant to federal programs and related activities.
• We have received no requests from a federal agency to audit one or more specific programs as a major program.
• We have complied with the direct and material compliance requirements (except for noncompliance disclosed to you), including when applicable, those set forth in the OMB Compliance Supplement, relating to federal awards and have identified and disclosed to you all amounts questioned and all known noncompliance with the requirements of federal awards.
• We have disclosed any communications from grantors and pass-through entities concerning possible noncompliance with the direct and material compliance requirements, including communications received from the end of the period covered by the compliance audit to the date of the auditor’s report.
• We have disclosed to you the findings received and related corrective actions taken for previous audits, attestation engagements, and internal or external monitoring that directly relate to the objectives of the compliance audit, including findings received and corrective actions taken from the end of the period covered by the compliance audit to the date of the auditor’s report.
• Amounts claimed or used for matching were determined in accordance with relevant guidelines in the Uniform Guidance.
• We have disclosed to you our interpretation of compliance requirements that may have varying interpretations.
EXHIBIT C
228
• We have made available to you all documentation related to compliance with the direct material compliance requirements, including information related to federal program financial reports and claims for advances and reimbursements.
• We have disclosed to you the nature of any subsequent events that provide additional evidence about conditions that existed at the end of the reporting period affecting noncompliance during the reporting period.
• There are no such known instances of noncompliance with direct and material compliance requirements that occurred subsequent to the period covered by the auditor’s report. • No changes have been made in internal control over compliance or other factors that might significantly affect internal control, including any corrective action we have taken regarding significant deficiencies in internal control over compliance (including material weaknesses in internal control over compliance), subsequent to the date as of which compliance was audited.
• Federal program financial reports and claims for advances and reimbursements are supported by the books and records from which the financial statements have been prepared. • The copies of federal program financial reports provided you are true copies of the reports submitted, or electronically transmitted, to the respective federal agency or pass-through entity, as applicable.
• We have monitored subrecipients to determine that they have expended pass-through assistance in accordance with applicable laws and regulations and have met the requirements of the Uniform Guidance.
• We have taken appropriate action, including issuing management decisions, on a timely basis after receipt of subrecipients’ auditor’s reports that identified noncompliance with laws, regulations, or the provisions of contracts or grant agreements and have ensured that subrecipients have taken the appropriate and timely corrective action on findings. • We have considered the results of subrecipient audits and have made any necessary adjustments to our books and records.
• We have charged costs to federal awards in accordance with applicable cost principles. • We are responsible for and have accurately prepared the summary schedule of prior audit findings to include all findings required to be included by the Uniform Guidance and we have provided you with all information on the status of the follow-up on prior audit findings by federal awarding agencies and pass-through entities, including all management decisions, if applicable.
• We are responsible for and have accurately prepared the auditee section of the Data Collection Form as required by the Uniform Guidance.
• We are responsible for preparing and implementing a corrective action plan for each audit finding, if applicable.
(First & Last Name, Title)
Tori A. Hannah, Finance Director
EXHIBIT C
229
Page | 1 16450 Monterey Road, Ste 5, Morgan Hill, CA 95037 Tel: 408-217-8749 • E-Fax: 408-872-4159
[email protected] • www.cnallp.com
Management Letter
Fiscal Year Ended June 30, 2025
City of Marina
City Council and Management
Marina, California
In planning and performing our audit of the financial statements of City of Marina as of and for the year ended June 30, 2025, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, we considered City of Marina’s internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Marina’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of Marina’s internal control over financial reporting.
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 over financial reporting, 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 reasonable possibility exists when the likelihood of an event occurring is either reasonably possible or probable as defined as follows:
Reasonably possible: The chance of the future event or events occurring is more than remote but less than likely.
Probable: The future event or events are likely to occur.
Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
The purpose of this communication, which is an integral part of our audit, is to describe, for management and those charged with governance, the scope of our testing of internal control and the results of that testing. Accordingly, this communication is not intended to be and should not be used for any other purpose.
Respectfully,
December 10, 2025
Morgan Hill, California
EXHIBIT D
230
January 13, 2026 Item No. 10k(1)
Honorable Mayor and Members City Council Meeting
of the Marina City Council of January 21, 2026
CITY COUNCIL CONSIDER ADOPTING RESOLUTION NO. 20 26-,
APPROVING A FUND TRANSFER AND APPROPRIATION OF $6,106 FROM
EACH OF THE IMPACT FEE ACCOUNTS TO THE PUBLIC FACILITIES
IMPACT FEE STUDY UPDATE AND AUTHORIZING THE FINANCE
DIRECTOR TO MAKE NECESSARY ACCOUNTING AND BUDGETARY
ENTRIES
REQUEST:
It is requested that the City Council:
1. Consider adopting Resolution No. 20 26-, approving a fund transfer and appropriation of $6,106 from each of the Impact Fee accounts to the Public Facilities Impact Fee Study Update and authorizing the Finance Director to make necessary accounting and budgetary entries.
BACKGROUND:
At the regular meeting of April 19, 2016, the City Council adopted Resolution 2016 -50, making available the Development Impact Fee Study in accordance with Marina Municipal Code Chapter
3.26. At the regular meeting of July 19, 2016, the City Council passed and adopted Ordinance No. 2016- 04, amending Chapter 3.26 of the Marina Municipal Code regarding mitigation fees for new development.
At the regular meeting of May 16, 2023 the City Council passed and adopted Resolution No. 2023- 47, approving a fund transfer and appropriation of $40,000 from each of the Impact Fee accounts to the Public Facilities Impact Fee Study Update.
At the regular meeting of June 24, 2025, the City Council passed and adopted Resolution No. 2025-67, approving a fund transfer and appropriation of $ 17,400 from each of the Impact Fee accounts to the Public Facilities Impact Fee Study Update.
ANALYSIS:
The Public Facilities Impact Fee Study (Study) report updates all five (5) City public facilities impact fee programs for public building facilities, public safety facilities, roadways, intersections and parks. This Study is updated on approximately a 5-year cycle. This Study was completed and adopted on October 7, 2025.
The on-call Traffic Engineering consultant firm Kimley Horn & Associates provided continuous engineering and financing support through the various iterations and models reviewed during the Study process. Land use updates, fee adjustments, project scope and cost estimate updates, and coordination with the City’s legal counsel fo r consistency and clarifications were added to the consultant’s scope without revision or updates to their proposal. Staff has reviewed the proposed request for compensation and finds the scope of work was necessary to complete the Study in the time frame requested by the City.
1 FISCAL IMPACT:
Due to the requirements added by the City, an additional $6,106 will be required from each of the impact fee accounts to complete the updated Study.
Should the Council approve this request, the City Finance Director will make all necessary accounting and budgetary entries to facilitate a fund transfer from each of the Impact Fee accounts to the Capital Improvement Program Project EDC2124 – Public Facil ities Impact Fee Study Update.
CONCLUSION:
This request is submitted for City Council’s approval.
Respectfully submitted,
_____________________________
Edrie Delos Santos, P.E.
Engineering Division
Public Works Department
REVIEWED/CONCUR:
____________________________
Ismael Hernandez
Public Works Director
City of Marina
_____________________________
Layne P. Long
City Manager
City of Marina
2 RESOLUTION NO. 2026-
A RESOLUTION OF CITY COUNCIL OF THE CITY OF MARINA
APPROVING A FUND TRANSFER AND APPROPRIATION OF $6,106
FROM EACH OF THE IMPACT FEE ACCOUNTS TO THE PUBLIC
FACILITIES IMPACT FEE STUDY UPDATE AND AUTHORIZING THE
FINANCE DIRECTOR TO MAKE NECESSARY ACCOUNTING AND
BUDGETARY ENTRIES
WHEREAS, at the regular meeting of April 19, 2016, the City Council adopted Resolution 2016- 50, making available the Development Impact Fee Study in accordance with Marina Municipal Code Chapter 3.26, and;
WHEREAS, a t the regular meeting of July 19, 2016, the City Council passed and adopted Ordinance No. 2016 -04, amending Chapter 3.26 of the Marina Municipal Code regarding mitigation fees for new development, and;
WHEREAS, at the regular meeting of May 16, 2023 the City Council passed and adopted Resolution No. 2023-47, approving a fund transfer and appropriation of $40,000 from each of the Impact Fee accounts to the Public Facilities Impact Fee Study Update, and;
WHEREAS, at the regular meeting of June 24, 2025, the City Council passed and adopted Resolution No. 2025-67, approving a fund transfer and appropriation of $17,400 from each of the Impact Fee accounts to the Public Facilities Impact Fee Study Update.
WHEREAS, the Public Facilities Impact Fee Study (Study) report updates all five (5) City public facilities impact fee programs for public building facilities, public safety facilities, roadways, intersections and parks. This Study is updated on approximately a 5 -year cycle. This Study was completed and adopted on October 7, 2025.
WHEREAS, the on-call Traffic Engineering consultant firm Kimley Horn & Associates provided continuous engineering and financing support through the various iterations and models reviewed during the Study process. Land use updates, fee adjustments, project scope and cost estimate updates, and coordination with the City’s legal counsel fo r consistency and clarifications were added to the consultant’s scope without revision or updates to their proposal. Staff has reviewed the proposed request for compensation and finds the scope of work was necessary to complete the Study in the time frame requested by the City.
WHEREAS, due to the requirements added by the City, an additional $6,106 will be required from each of the impact fee accounts to complete the updated Study, and;
WHEREAS, s hould the Council approve this request, the City Finance Director will make all necessary accounting and budgetary entries to facilitate a fund transfer from each of the Impact Fee accounts to the Capital Improvement Program Project EDC2124 – Public Facilities Impact Fee Study Update.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Marina approves a fund transfer and appropriation of $6,106 from each of the Impact Fee accounts to the Public Facilities Impact Fee Study Update and authorizing the Finance Director to make necessary accounting and budgetary entries.
3 Resolution No. 2026-
Page Two
PASSED AND ADOPTED by the City Council of the City of Marina at a re gular meeting duly held on the 21st day of January 2026, by the following vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
___________________________
Bruce C. Delgado, Mayor
ATTEST:
________________________________
Anita Sharp, Deputy City Clerk
4