Agenda packet, regular meeting — Morro Bay City Council, June 25, 2024 (part 2 of 2)

Maximum Maturity: California Government Code Section 53601 lists the maximum maturity for any instrument as five (5) years. The exception to this time frame is made for investments with LAIF or collateralized deposits.

Minimum Credit Requirements: The City has chosen to follow the California Government Code Section 53601 that sets the minimum credit rating required for certain investment instruments as follows:

1. Short-term debt shall be rated at least ''A-1'' by Standard & Poor's Corporation, ''P-1'' by Moody's Investors Service, Inc., or ''F-1'' by Fitch Ratings. If the issuer of short-term debt has also issued long-term debt, this long-term debt rating shall be rated at least ''A," without regard to +/- or 1, 2, 3 modifiers, by Standard & Poor's Corporation, Moody's Investors Service, Inc., or Fitch Ratings.

2. Long-term debt shall be rated at least ''A," without regard to +/- or 1, 2, 3 modifiers, by Standard & Poor's Corporation, Moody's Investors Service, Inc., or Fitch Ratings.

Maximum Weighted Average Maturity of a Portfolio: As part of the quarterly portfolio performance report that is provided to the City Council, a weighted average maturity (WAM) of the portfolio is calculated.

While there are no requirements under state law for a maximum WAM of a portfolio, CDIAC's Local Agency Investment Guidelines suggest that local agencies include and monitor WAM to arrive at an acceptable range for future implementation of a maximum benchmark.

Social Responsibility: Priority will be given to investments that are in compliance with socially responsible goals, to the extent that such investments achieve equivalent safety, liquidity and yield compared to other investments that do not meet the City's socially responsible goals. When not impacting yield, safety and liquidity, priority will be given to investments that support community well-being through safe, environmentally sound, practices and fair labor practices. Investments are encouraged in entities that support combating climate change and equality of rights regardless of race, sex, religion, age, national or ethnic origin, sexual orientation, or disability.

PORTFOLIO MANAGEMENT ACTIVITY
Active or Passive Portfolio Management: In active portfolio management, treasurers buy and sell securities based on how to maximize portfolio values over a given timeframe. In passive portfolio management, the goal is to match a market rate of return (usually a benchmark). Weighing the pros and cons of each strategy in light of staff resources and investment, the City has chosen to follow a passive portfolio management strategy.

Competitive Bidding: Investments are purchased in the most cost effective and efficient manner utilizing approved brokers/dealers on all investment transactions.

Reviewing and Monitoring of the Portfolio: The portfolio requires monthly staff review to ensure the investments are being properly tracked and reported, and quarterly reporting to the Citizens Finance Advisory Committee.

Portfolio Adjustments: If the portfolio demonstrates non-compliance with the investment policy, the Treasurer, and designated staff, may hold the affected securities to maturity to avoid losses; however, the Treasurer may choose to rebalance the portfolio earlier to bring it back into compliance only if the portfolio will not suffer any losses for selling the investment prior to maturity.

Performance Standards: The objective of investing is to obtain a rate of return throughout budgetary and economic cycles, commensurate with investment risk constraints and cash flow needs.

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REPORTING
Reporting Methods: On a quarterly basis, the investment portfolio will be presented at a City Council meeting, along with the quarterly financial reports, and will list the following components:

1. types of investment;

2. issuer names;

3. dates of maturity;

4. par amounts;

5. dollar amounts;

6. market values;

7. descriptions of programs under the management of contracted parties;

8. a statement of compliance with the investment policy; and

9. a statement of the ability to meet cash flow needs for six months.

Governmental Accountings Standards Board (GASB) Statement No. 31 - Marking to Market: The City's portfolio is to be marked-to-market for the quarterly investment report provided to the City Council and at minimum, annually for the financial statements. Market values are to be obtained from a reputable and independent source and disclosed to the City Council in the quarterly written report. The independent source of pricing should not be one of the parties to the transaction being valued. Such an independent source could include a broker or other financial institution that was not counterparty to the transaction, the custodial bank if the bank was not a counterparty to the transaction, publicly available publications such as The Wall Street Journal, or other pricing services for which a separate fee would be paid.

This is consistent with GASB Statement No. 31, which requires that governmental entities report investments at fair value, and with the California Governmental Code, which also requires market values of investments be reported.

Calculation of Yield and Costs: All yield rates on investments will be presented at book value.

Investment Policy Adoption, Review, and Amendment: The investment policy will be reviewed, amended, and presented to the City Council annually with budget adoption. The review should· ensure that the policy is consistent with the overall objectives of preservation of principal, liquidity, and return, and is in conformance with the law, financial and economic trends, and the cash flow needs of the local agency.

Definitions or Glossary of Terms: This investment policy includes a definition section (Appendix A) in order to establish a common vocabulary between the Treasurer, and designated staff, the City Council, and the public.

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APPENDIX A - INVESTMENT POLICY TERMINOLOGY
The following are examples of terminology commonly found in California City investment policies. The inclusion of these sections provides clarity to investment policies and better enables readers to understand important concepts.

Authorized Financial Dealers and Institutions: A list of financial institutions authorized to provide investment services. May also include a list of approved security broker/dealers with which the City can do business. These institutions and broker/dealers are usually selected by their ability to add value to the investment process. Some criteria to consider when choosing an approved broker/dealer include creditworthiness, expertise, and the products in which the financial dealer or institution is familiar. GFOA suggests that all entities qualifying for investment transactions provide audited financial statements; proof of industry group (National Association of Securities Dealers [NASO]) certification; proof of state registration; completed broker/dealer questionnaire; and certification of having read, understood, and agreeing to comply with the investment policy.

Bankers' Acceptance: A draft, bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.

Certificate of Deposit: A time deposit with a specific maturity evidenced by a certificate.

Collateralization: Process by which a borrower pledges securities, property, or other deposits for the purpose of securing the repayment of a loan and/or security. California Government Code Section 53601 requires that all repurchase agreements be secured by eligible securities with a market value of 102 percent or greater of the funds borrowed. California Government Code requires public deposits to be collateralized at 110%.

Delegation of Authority: The granting of authority to manage the investment program to designated officials.

Such authority is usually derived from code sections, ordinance, charters, or statutes. Government Code Section 53607, for example, allows the City Council to delegate, for a one-year period, its authority to invest or reinvest funds or to sell or exchange securities held by the local government.

Delivery vs. Payment: A type of securities transaction in which the purchaser pays for the securities when they are delivered either to the purchaser or his/her custodian. It ensures that securities are deposited in an eligible financial institution prior to the release of funds. A third-party custodian as evidenced by safekeeping receipts should hold securities.

Diversification: A process of investing assets among a range of security types by sector, maturity, credit rating, and call type or structure. This reduces exposure to risk by combining a variety of investments, which are unlikely to all move in the same direction. GFOA suggests diversifying a city's investment portfolio by limiting investments to avoid exposure to a specific sector, limiting investment in securities with higher credit risks, investing in instruments with varying maturities, and continuously investing a portion of the portfolio in readily available funds such as a local government investment pool, money market funds, or overnight repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations.

Ethics and Conflicts of Interest: The California Political Reform Act of 1974 requires certain designated public officials at all levels of government to publicly disclose their private economic interests and requires all public officials to disqualify themselves from participating in decisions in which they have a financial interest.

As part of this requirement, local agencies are required to adopt and promulgate a Conflict- of - Interest Code, with certain required sections. To further promulgate this Code, investment policies sometimes include language requiring the ethical conduct of investment officers and statements regarding refraining from personal business activity that could conflict with the proper execution and management of the investment program or that could impair their ability to make impartial decisions. To avoid conflicts, GFOA recommends that investment officers disclose material interests in financial institutions with which they do business, disclose personal financial interests that could be related to the performance of the investment portfolio, and refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the local government.

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Exemption: Language that grandfathers prohibited investments into the investment policy because they may have been held in the portfolio prior to the prohibition. When these investments mature or are liquidated, the money should be reinvested as provided by the policy and the exemption language should be removed from the policy.

FDIC: Federal Deposit Insurance Corporation is a federal agency that insures bank deposits up to $250,000 per deposit.

General Objectives: The section of an investment policy that illustrates the three main objectives (safety, liquidity, and yield), in order of priority, of a good investment policy. In addition to these commonly included objectives, there are a myriad of other objectives for which an investment policy can strive. Safety is the preservation of principal. Liquidity is how easily an investment may be redeemed for cash. Yield is the current rate of return on a security generally expressed as a percentage of its current price. As per California Government Code Section 53600.5, safeguarding the principal of the funds under its control should be the primary objective of local agencies. Liquidity also should be a principal objective of a portfolio. The portfolio should maintain sufficient liquidity to meet operating requirements. To accomplish this, a local agency can structure a portfolio so that investments mature when cash is needed and also by investing in liquid securities with an active secondary market. Yield should be the last objective an investment portfolio should strive for, behind safety and liquidity. Since there are many different ways for yield to be calculated, the investment policy should specify how it is to be calculated.

Internal Controls: The system used to ensure that the local government assets are protected from loss, theft, or misuse. Such a system should provide a reasonable assurance that such loss, theft, or misuse can be prevented. Examples include separation of duties, delegation of authority, and documentation.

GFOA suggests that an internal control system address the following points: control of collusion, separation of transaction authority from accounting and recordkeeping, custodial safekeeping, avoidance of physical delivery of securities, clear delegation of authority to subordinate staff, written confirmation of transactions for investments and wire transfers, and development of a wire transfer agreement with the lead bank and third-party custodian.

Investment Parameters: Specified restrictions on investments to limit the amount of risk in a portfolio. These parameters may be specified in the California Government Code; however, the local agency may choose to further restrict investment options depending on its risk tolerance. Such parameters may include diversification of investment types, percentages, or dollar limits per issuer and setting maximum maturities.

Investment Types: A recitation of the investment types the local agency has been given authority in which to invest. This may be a list of securities allowable under California Government Code Section 53601 et seq., and may be further restricted by the agency itself. For a description of the allowable California local agency investment instruments, please see CDIAC's latest version of its Local Agency Investment Guidelines, available on its website at https://www.treasurer.ca.gov/cdiac/index.asp GFOA recommends the investment in the following types of securities: U.S. government securities and agency obligations; highlyrated certificates of deposit, bankers' acceptances, commercial paper; investment-grade state and local government obligations; repurchase agreements securitized by the previously-mentioned securities; SECregulated, dollar-denominated money market mutual funds; and local government investment pools.

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LAIF: Local Agency Investment Fund, the State of California's investment pool in which cities, counties and special districts may participate.

Liquidity: A liquid asset is one that can be quickly and easily converted into cash without loss in value.

Market Value: The price at which a security is trading at a point in time. Selling an investment at market value can result in a gain ($500,000 investment sold for $515,000 = $15,000 gain) or loss ($500,000 investment sold for $498,000 = $2,000 loss). Gains and losses are dependent on changes in the current rate of interest as compared to the interest rate of the investment that is being considered for sale.

Marking-to-Market: The act of recording the price or value of a security to reflect its current market value rather than its book value.

Maximum Maturities: Maturity is the date on which the security or obligation is redeemed by the issuer in exchange for cash. California law states that local governments cannot invest in instruments with terms remaining to maturity in excess of five years unless they receive express authority from their legislative bodies to do so. Local governments should attempt to match investment maturities with anticipated cash flow requirements. There is no requirement under California law for local governments to have a weighted average maturity (WAM) restriction for their portfolio, although CDIAC's Local Agency Investment Guidelines suggests that local agencies consider adopting a WAM restriction.

Performance Standards: The criteria by which a stated goal is measured. An investment portfolio's performance and risk exposure should be evaluated against appropriate benchmarks on a regular basis.

One standard that should be strived for should be a market rate of return in a given interest rate environment.

Policy Considerations: The local ordinances or other requirements that place restrictions on the policy.

Local governments should consider what should be exempted from the policy and also when, or under what circumstances, the policy should be amended.

Pooling of Funds: A statement in the investment policy that except for certain restricted or special funds, cash balances should be consolidated from all funds to maximize investment earnings.

Portfolio: The collection of investment instruments held.

Prudent Investor Standard: Legal maxim that all investments should be made with care, skill, prudence and diligence under the circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the professional management of their business affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.

Reporting: Presentation of evaluation data or other information to communicate processes, roles, and results. Investment policies should include reporting requirements such as methods of reporting investments, the standards against which investments should be reported, and the requirement for calculating market value.

Reporting Methods: Ways in which investment outcomes are reported including listing of instrument values, dollar value returns, percentage yields, etc. GFOA suggests that local governments prepare investment reports at least quarterly. In California, investment reports are no longer required to be submitted to legislative bodies. This requirement is now permissive. If a local government chooses to submit an investment report in accordance with California Government Code Section 53646 to their legislative bodies, they are still required to submit copies to CDIAC for the second and fourth quarter of every calendar year until January 1, 2007. GFOA goes on to list some suggested components of investment reports, including listing of securities, gains and losses, average weighted yield to maturity as compared to benchmarks, listing of investment by maturity date, and percentage of the total portfolio which each type of investment represents.

Repurchase Agreements: A repurchase agreement is a form of short-term borrowing for dealers in government securities, which are highly valued and thus considered a good source of collateral. The dealer sells the government securities to investors, usually on an overnight basis, and buys them back the following day. Investments in repurchase agreements may be made when the term of the agreement does not exceed one year.

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Risk: Two of the most common risks associated with local government portfolio investing are credit risk and interest rate risk. Credit risk is the risk to an investor that an issuer will default in the timely payment of interest and/or principal on a security. Interest rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. Limiting investment to the safest types of securities, pre-qualifying financial institutions, broker/dealers, and others with which the local agency will do business, and diversifying the number of issuers in an investment portfolio can minimize credit risk. Interest rate risk can be minimized by structuring the portfolio so that investments mature at the same time that cash is required or investing operating funds in highly liquid, shorter-term securities (e.g., U.S.

Treasury bills or notes).

Safekeeping and Custody: Rules derived to ensure the safety of an investment and within whose control the investment resides. Some examples include third-party safekeeping, developing lists of authorized financial dealers and institutions, developing internal controls, and using a delivery vs. payment standard for transactions. Local agencies should consider requiring securities to be held by third-party custodians, evidenced by timely statements illustrating the balance held by these custodians.

Scope: The types of funds that the policy covers (e.g., operating funds, bond proceeds, etc.). In general, investment policies cover short-term operating funds. Longer-term funds such as retirement funds are covered by other policies. The investment of bond funds usually is governed by the bond documents such as the trust indenture.

Standards of Care: The degree of care that a reasonably prudent person would exercise in the investment of local agency funds.

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RESOLUTION NO. 51-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,
ESTABLISHING THE ANNUAL PROPOSITION 4
APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2024-25

THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, Article XIIIB of the California Constitution restricts the appropriation of tax proceeds that the City receives in any given fiscal year; and WHEREAS, the City has calculated the FY 2024-25 appropriations limit, in accordance with the provisions of Article XIIIB of the California Constitution; and WHEREAS, in June 1990, the California voters approved Proposition 111, amending the Gann Initiative to provide local agencies with the option of using either the city or county population change percentage, whichever is greater. The City is calculating this limit using the San Luis Obispo County population change and the California Per Capita Personal Income, referred to as the Price Factor (outlined in Exhibit 3, attached hereto); and WHEREAS, the City has complied with Government Code 7910.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, to adopt Resolution No. 51-24, which accepts the calculation of the FY 2024- 25 appropriations limit, as prepared by the Morro Bay Finance Department, and establishes the FY 2024-25 appropriations limit at $35,461,193, based on the calculation detailed in Exhibits 1 and 2 attached hereto.

PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 25th day of June 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:
______________________________________
CARLA WIXOM, Mayor
ATTEST:
______________________________
DANA SWANSON, City Clerk

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001 003 051 052 250 260 201-206 280 282 303 302 019 430 450 General District State Road Maint. Traffic SLESF LTF LTF Information Risk Fund Trans Tax GFER GF Fac Maint Gas Tax & Rehab SB1 CDBG Safety COPS Roads Bikepaths ARPA Technology Management Property taxes 5,642,154 - - - - - - - - - - -
Intergovernmental Revenues 159,000 - - - 303,607 269,999 3,667 - ###### - 12,108 - - Other taxes:

Sales and Use Tax 2,632,000 4,313,735 - - - - - - - - - - Cannabis City Tax 490,000 - - - - - - - - - - -
Transient Occupancy Tax 4,500,000 - - - - - - - - - - - Franchise fees 747,380 - - - - - - - - - - -
Other - - - - - - - - - - - -
Licenses/permits 725,000 - - - - - - - - - - -
Revenues From Current Service 2,063,897 - - - - - - - - - - 80,000 Fines/Forfeitures 31,090 - - - - - 10,000 - - - - -
Other Revenues 533,840 - - - - - - - - - - - 1,750,722
Use of money and property:

Interest 275,000 - - - - - - - - - - - -
Rent 458,000 - - 62,592 - - - - - - - -
Revenue from other agencies: -
State - - - - - - - - - - - -
State/County grants - - - - - - - - - - - -
Federal grants - - - - - - - - - - -
18,257,361 4,313,735 - 62,592 303,607 269,999 3,667 10,000 ###### - 12,108 - 80,000 1,750,722 045 301 311 & 921 315 321 & 922 331 & 923 500 & 565 570 & 575 515-2430 900 907 925 924 941 All Funds Developer Transit Water Sewer Special Special TOTAL
Reimbursment Operating & Operating & Utility Operating & Harbor Ops Assessmt Assessmt LMD PEG Gov Economic Triangle Lot State Park Housing ESTIMATED Agreements Capital Imprv. Capital Imprv. Discount Capital Imprv. & Equipment Districts Cloisters Fees Impact Development Boat Yard Marina In-Lieu REVENUES Property taxes - - - - - - 8,477 148,944 - - - - - - 5,799,575 Intergovernmental Revenues - 562,693 - - 3,527,524 151,000 - - - - 117,806 - - - 5,257,404 Other taxes: -
Sales and Use Tax - - - - - - - - - - - - - 6,945,735
Cannabis City Tax - - - - - - - - - - - - 490,000
Transient Occupancy Tax - - - - - - - - - - - - 4,500,000 Franchise fees - - - - - - - - - - - - - 747,380
Other - - - - - - - - - - - - - -
Licenses/permits - - - - - - - - - - - - - 725,000
Revenues From Current Service - 17,000 7,649,200 - 9,460,000 2,467,766 - - - 105,946 - 95,000 10,000 21,948,809 Fines/Forfeitures - 55,000 - 30,000 2,518 - - - - - - - - 128,608 Other Revenues 220,000 19,200 - - - 500 - - - 35,000 - - - - 2,559,262 Use of money and property: -
Interest - 72,637 - 243,604 - - - - - - - - - 591,241
Rent - - - 20,000 - - - - - - 53,000 - 593,592
Revenue from other agencies: - -
State - - - - - - - - - - - - - -
State/County grants - - - - - - - - - - - - - -
Federal grants/loans - - - - - - - - - - - - - -
220,000 598,893 7,776,837 - 13,281,128 2,621,784 8,477 148,944 - 140,946 117,806 53,000 95,000 10,000 50,286,606

CITY OF MORRO BAY

APPROPRIATION LIMIT DOCUMENTATION
FISCAL YEAR 2024/25

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CITY OF MORRO BAY

APPROPRIATION LIMIT DOCUMENTATION
FISCAL YEAR 2024-25

PROCEEDS OF TAXES CALCULATION APPROPRIATION LIMIT CALCULATION [1] PROCEEDS TOTAL [2] [3]

PROCEEDS OTHER THAN ESTIMATED CALIFORNIA POPULATION

OF TAXES TAXES REVENUES YEAR PCPI CHANGE CHANGE LIMIT
PROPERTY TAXES $ 5,799,575 5,799,575 1978-79 BASE YEAR $ 3,046,393 INTERGOVERNMENTAL 5,257,404 5,257,404 1979-80 10.17% 1.38% 3,402,527 OTHER TAXES 11,935,735 747,380 12,683,115 1980-81 10.53% 0.26% 3,770,591 PERMITS 725,000 725,000 1981-82 9.12% 1.39% 4,171,660
REVENUE FROM AGENCIES - 1982-83 6.79% 2.04% 4,545,796
STATE - 1983-84 2.35% 1.81% 4,736,835
STATE/COUNTY GRANTS - 1984-85 4.74% 1.75% 5,048,185
FEDERAL GRANTS - 1985-86 3.74% 1.62% 5,321,826
USE OF MONEY & PROPERTY - 1986-87 2.30% 4.12% 5,668,530 INTEREST 591,241 591,241 1987-88 3.04% 2.93% 6,011,990
RENT 593,592 593,592 1988-89 3.93% 3.83% 6,487,570
FINES & FORFEITURES 128,608 128,608 1989-90 4.98% 3.92% 7,077,629 CHARGES FOR SERVICES 21,948,809 21,948,809 1990-91 4.21% 4.59% 7,714,137 OTHER REVENUES 2,559,262 2,559,262 1991-92 4.14% 3.04% 8,277,721 1992-93 -0.64% 1.00% 8,306,991
$ 17,735,310 $ 32,551,296 $ 50,286,606 1993-94 2.72% 1.86% 8,691,654 1994-95 0.71% 1.40% 8,875,912
TRUE 1995-96 4.72% 1.60% 9,443,573
1996-97 4.67% 2.31% 10,112,922
1997-98 4.67% 2.06% 10,803,250
1998-99 4.15% 2.70% 11,555,378
1999-2000 4.53% 2.28% 12,354,234
2000-01 4.91% 2.46% 13,279,663
2001-02 7.82% 1.60% 14,547,223
2002-03 -1.27% 1.80% 14,620,998
2003-04 2.31% 1.32% 15,156,198
2004-05 3.28% 1.15% 15,833,334
2005-06 5.26% 1.19% 16,864,495
2006-07 3.96% 0.73% 17,660,315
2007-08 4.42% 0.96% 18,617,934
2008-09 4.29% 1.12% 19,634,110
2009-10 0.62% 1.01% 19,955,375
2010-11 -2.54% 0.87% 19,617,710
2011-12 2.51% 1.09% 20,329,315
2012-13 3.77% 0.47% 21,194,880
2013-14 5.12% 0.52% 22,395,914
2014-15 -0.23% 0.09% 22,364,513
2015-16 3.82% 0.78% 23,399,944
2016-17 5.37% 0.77% 24,846,376
2017-18 3.69% 0.59% 25,915,210
2018-19 3.67% 0.35% 26,960,330
2019-20 3.85% 0.24% 28,065,499
2020-21 3.73% -0.42% 28,990,070
2021-22 5.73% -0.30% 30,559,247
2022-23 7.55% 0.28% 32,958,496
2023-24 4.44% -0.50% 34,249,744
2024-25 3.62% -0.08% 35,461,193
PROCEEDS OF TAXES 17,735,310

PROCEEDS OF TAXES
UNDER APPROPRIATION LIMIT $ 17,725,883

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April 30, 2024
Dear Fiscal Officer:

Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code section 2227 requires the Department of Finance to transmit an estimate of the percentage change in population to local governments.

Each local jurisdiction must use their percentage change in population factor for January 1, 2024, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2024-25. Attachment A provides the change in California’s per capita personal income and an example for utilizing the factors to calculate the 2024-25 appropriations limit. Attachment B provides the city and unincorporated county population percentage change. Attachment C provides the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations.

Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code section 2228 provides additional information regarding the appropriations limit. Article XIII B, section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits.

Population Certification
The population certification program applies only to cities and counties. California Revenue and Taxation Code section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller’s Office. Finance will certify the higher estimate to the State Controller by June 1, 2024. Please note: The prior year’s city population estimates may be revised. The per capita personal income change is based on historical data.

If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086.
/s Richard Gillihan

RICHARD GILLIHAN
Chief Operating Officer
Attachment

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May 2024
Attachment A
A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2024-25 appropriation limit is:

Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2024-25 3.62
B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2024-25 appropriation limit.
2024-25:

Per Capita Cost of Living Change = 3.62 percent
Population Change = 0.17 percent
Per Capita Cost of Living converted to a ratio: 3.62 + 100 = 1.0362 100
Population converted to a ratio: 0.17 + 100 = 1.0017
100
Calculation of factor for FY 2024-25: 1.0362 x 1.0017 = 1.0379

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Population Percent Change --- Population Minus Exclusions --- City 23-24 1-1-23 1-1-24 1-1-24
Alameda
Alameda 1.21 76,309 77,234 78,071
Albany -0.14 20,354 20,325 20,325
Berkeley 0.12 125,181 125,327 125,327
Dublin -0.03 71,600 71,575 72,917
Emeryville 4.95 12,686 13,314 13,314
Fremont -0.63 230,713 229,250 229,250
Hayward -0.58 160,699 159,770 159,770
Livermore -0.48 85,235 84,828 84,828
Newark -2.36 47,762 46,635 46,635
Oakland -0.52 427,085 424,873 425,093
Piedmont -0.88 10,878 10,782 10,782
Pleasanton -1.17 76,861 75,960 75,960
San Leandro -1.01 87,984 87,098 87,098
Union City -1.26 67,279 66,432 66,432
Unincorporated -1.18 147,743 146,006 146,067
County Total -0.54 1,648,369 1,639,409 1,641,869
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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1.42 -0.13
-0.77

2.85 0.71

3.74 1.81

1.04 0.55

0.67 -0.10

1.09 0.27
-0.11
-0.10

0.06 124,361
13,291
8,480
7,163
542,600
6,119
16,950
12,908
12,462
9,453
14,382
25,376
26,286
3,620
24,395
157,158
126,133
13,274
8,415
7,367
546,467
6,348
17,256
13,042
12,531
9,516
14,368
25,653
26,357
3,616
24,371
157,254
126,133
17,107
8,415
7,367
546,971
6,348
17,256
13,042
12,531
9,516
14,368
25,653
26,357
3,616
24,371
158,380
County Total 0.69 1,005,004 1,011,968 1,017,431
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 County
City
Percent Change
23-24
--- Population Minus Exclusions ---
1-1-23 1-1-24
Total
Population
1-1-24
Humboldt
Arcata
Blue Lake
Eureka
Ferndale
Fortuna
Rio Dell
Trinidad
Unincorporated
-1.54
-1.29
-0.80
-1.45
-1.11
-1.49
-1.34
-1.07
18,830
1,164
26,116
1,376
12,318
3,290
298
70,959
18,540
1,149
25,906
1,356
12,181
3,241
294
70,199
18,540
1,149
26,073
1,356
12,181
3,241
294
70,266
County Total -1.11 134,351 132,866 133,100
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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2.58 1.70

4.60 1.37

1.27 2.59

2.86 1.65
27,633
38,606
6,063
44,305
5,513
21,583
1,993
30,586
28,345
39,262
6,342
44,911
5,583
22,141
2,050
31,091
28,345
39,262
6,342
44,952
5,583
22,141
2,050
34,206
County Total 1.95 176,282 179,725 182,881
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.98 0.80

0.60 0.96

0.00 1.45

0.75 4.31

0.13 0.48

1.35 0.39
19,460
407,835
13,001
45,119
1,004
13,765
27,098
21,266
6,944
9,297
22,945
300,172
19,651
411,109
13,079
45,554
1,004
13,965
27,300
22,183
6,953
9,342
23,254
301,340
19,651
411,109
13,079
52,484
1,004
13,965
27,940
22,226
6,953
11,092
27,028
303,769
County Total 0.77 887,906 894,734 910,300
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Percent Change --- Population Minus Exclusions --- Population City 23-24 1-1-23 1-1-24 1-1-24
Los Angeles
Agoura Hills -0.44 19,928 19,841 19,841
Alhambra 0.05 81,753 81,790 81,811
Arcadia -0.13 55,855 55,783 55,783
Artesia -0.21 16,053 16,019 16,019
Avalon -0.57 3,332 3,313 3,313
Azusa -0.35 49,595 49,420 49,420
Baldwin Park -0.06 70,700 70,660 70,660
Bell -0.34 33,414 33,301 33,301
Bellflower -0.03 77,014 76,990 76,990
Bell Gardens -0.49 38,569 38,381 38,381
Beverly Hills -0.45 31,950 31,806 31,806
Bradbury -0.77 905 898 898
Burbank 0.11 105,484 105,603 105,603
Calabasas -0.50 22,857 22,742 22,742
Carson -0.52 92,399 91,920 91,924
Cerritos -0.53 48,063 47,806 47,806
Claremont 0.03 37,673 37,686 37,686
Commerce 0.57 12,055 12,124 12,124
Compton -0.37 94,016 93,671 93,671
Covina 0.19 50,390 50,485 50,485
Cudahy -0.52 22,327 22,210 22,210
Culver City 0.89 39,859 40,213 40,213
Diamond Bar -0.43 53,566 53,335 53,335
Downey -0.15 111,656 111,493 111,493
Duarte 3.04 22,958 23,656 23,656
El Monte 0.08 106,649 106,738 106,786
El Segundo -0.08 16,953 16,939 16,964
Gardena 0.22 59,896 60,028 60,028
Glendale -0.25 192,072 191,586 191,586
Glendora -0.32 51,374 51,209 51,209
Hawaiian Gardens -0.29 13,600 13,560 13,560
Hawthorne -0.37 85,886 85,566 85,566
Hermosa Beach -0.42 19,169 19,088 19,088
Hidden Hills 0.17 1,724 1,727 1,727
Huntington Park -0.31 53,374 53,209 53,219
Industry -0.23 427 426 426
Inglewood -0.53 106,628 106,065 106,065
Irwindale 0.74 1,488 1,499 1,499
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Percent Change --- Population Minus Exclusions --- Population City 23-24 1-1-23 1-1-24 1-1-24
La Canada Flintridge -0.20 20,089 20,048 20,048
La Habra Heights -0.45 5,513 5,488 5,488
Lakewood -0.25 80,365 80,162 80,162
La Mirada -0.40 48,271 48,077 48,077
Lancaster -0.10 169,939 169,776 172,631
La Puente -0.19 37,530 37,459 37,459
La Verne 0.06 31,678 31,697 31,697
Lawndale -0.55 31,026 30,855 30,855
Lomita -0.38 20,397 20,320 20,320
Long Beach -0.18 459,315 458,498 458,813
Los Angeles 0.27 3,800,438 3,810,548 3,814,318
Lynwood -0.23 66,424 66,271 66,271
Malibu -0.18 10,640 10,621 10,621
Manhattan Beach -0.50 34,367 34,195 34,195
Maywood -0.49 24,572 24,451 24,451
Monrovia 1.39 37,563 38,087 38,087
Montebello 0.32 61,730 61,930 61,930
Monterey Park -0.42 59,592 59,340 59,347
Norwalk -0.39 100,732 100,341 101,172
Palmdale -0.02 166,089 166,055 166,055
Palos Verdes Estates -0.44 13,031 12,974 12,974
Paramount -0.34 52,331 52,153 52,153
Pasadena 1.09 138,187 139,692 139,692
Pico Rivera -0.32 61,014 60,820 60,820
Pomona 0.68 151,132 152,166 152,166
Rancho Palos Verdes -0.50 41,106 40,902 40,919
Redondo Beach -0.27 68,424 68,239 68,239
Rolling Hills -0.53 1,686 1,677 1,677
Rolling Hills Estates 0.46 8,495 8,534 8,534
Rosemead 0.08 50,503 50,541 50,541
San Dimas -0.31 34,027 33,920 33,920
San Fernando 0.04 23,633 23,643 23,643
San Gabriel -0.09 38,648 38,613 38,613
San Marino 0.23 12,350 12,379 12,379
Santa Clarita -0.27 231,045 230,428 230,428
Santa Fe Springs -0.34 18,574 18,511 18,640
Santa Monica 0.34 92,598 92,912 92,912
Sierra Madre -0.15 10,925 10,909 10,909
Signal Hill -0.35 11,488 11,448 11,448
South El Monte -0.21 19,482 19,441 19,441
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.03 -0.37
-0.18
-0.36
-0.49
92,701
26,367
36,040
143,433
206
92,729
26,270
35,975
142,910
205
92,729
26,270
35,975
142,910
205
Walnut
West Covina
West Hollywood
Westlake Village
Whittier
Unincorporated
-0.10

0.65 -0.44
-0.45

0.22 -0.19
27,896
108,404
35,229
7,938
87,333
998,818
27,867
109,105
35,075
7,902
87,527
996,956
27,867
109,105
35,075
7,902
87,527
997,587
County Total 0.05 9,810,925 9,815,428 9,824,091
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.13 -0.44
-1.08
-0.26
-0.14
-0.45
-0.55
-0.36
-0.45
2,046
9,916
7,399
12,638
13,695
51,415
2,278
12,443
59,855
6,894
8,841
62,940
2,043
9,872
7,371
12,655
13,635
50,861
2,272
12,426
59,585
6,856
8,809
62,656
2,043
9,882
7,371
12,655
13,635
51,140
2,272
12,426
59,585
6,856
8,809
66,170
County Total -0.53 250,360 249,041 252,844
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Population Percent Change --- Population Minus Exclusions --- City 23-24 1-1-23 1-1-24 1-1-24
Merced
Atwater 0.02 31,390 31,397 31,397
Dos Palos -0.02 5,634 5,633 5,633
Gustine -0.07 5,940 5,936 5,936
Livingston 0.09 14,273 14,286 14,286
Los Banos 0.25 47,300 47,419 47,419
Merced 1.91 90,120 91,837 91,837
Unincorporated 0.23 89,424 89,630 90,795
County Total 0.72 284,081 286,138 287,303
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.55 0.64

0.98 2.01

1.78 1.91

0.56 0.63

0.73 0.26

0.04 2.94

0.75 3,105
1,559
8,384
20,155
13,968
22,269
24,096
14,872
160,870
378
28,075
19,565
104,372
3,122
1,569
8,466
20,561
14,216
22,695
24,232
14,966
162,037
379
28,085
20,140
105,157
3,122
1,569
8,466
20,561
14,216
22,695
27,106
14,966
162,037
379
30,197
26,966
105,334
County Total 0.94 421,668 425,625 437,614
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Percent Change --- Population Minus Exclusions --- Population City 23-24 1-1-23 1-1-24 1-1-24
Orange
Aliso Viejo -0.43 50,284 50,068 50,068
Anaheim 0.29 339,105 340,090 340,160
Brea -0.34 47,886 47,725 47,725
Buena Park 0.07 82,632 82,689 82,689
Costa Mesa -0.31 109,765 109,423 109,423
Cypress 0.11 49,291 49,345 49,345
Dana Point -0.38 32,721 32,596 32,596
Fountain Valley 0.18 56,233 56,333 56,333
Fullerton -0.32 140,756 140,311 140,311
Garden Grove 1.17 169,024 171,002 171,024
Huntington Beach -0.30 193,078 192,503 192,503
Irvine 0.97 311,537 314,550 314,550
Laguna Beach 0.07 22,433 22,449 22,449
Laguna Hills -0.42 30,442 30,315 30,315
Laguna Niguel 0.67 63,865 64,291 64,291
Laguna Woods -0.43 17,222 17,148 17,148
La Habra -0.21 61,028 60,901 60,901
Lake Forest 0.70 86,311 86,917 86,917
La Palma -0.40 15,131 15,071 15,071
Los Alamitos -0.19 11,970 11,947 11,947
Mission Viejo 0.09 91,221 91,304 91,304
Newport Beach -0.35 82,707 82,419 82,419
Orange -0.16 138,842 138,621 138,621
Placentia 0.08 52,182 52,226 52,226
Rancho Santa Margarita -0.43 46,507 46,305 46,305
San Clemente -0.29 62,481 62,297 62,297
San Juan Capistrano 1.05 34,627 34,992 34,992
Santa Ana 0.89 308,041 310,797 310,797
Seal Beach -0.37 24,200 24,110 24,350
Stanton 3.55 38,914 40,297 40,297
Tustin 0.42 78,515 78,844 78,844
Villa Park -0.19 5,716 5,705 5,705
Westminster 0.10 89,400 89,490 89,490
Yorba Linda -0.27 66,268 66,087 66,087
Unincorporated 0.72 130,381 131,325 131,335
County Total 0.31 3,140,716 3,150,493 3,150,835
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Population Percent Change --- Population Minus Exclusions --- City 23-24 1-1-23 1-1-24 1-1-24
Placer
Auburn -0.94 13,344 13,218 13,218
Colfax -1.09 2,010 1,988 1,988
Lincoln 1.79 52,296 53,231 53,231
Loomis 0.06 6,597 6,601 6,601
Rocklin 0.26 71,420 71,609 71,609
Roseville 1.05 152,726 154,329 154,329
Unincorporated 0.16 111,692 111,868 111,868
County Total 0.67 410,085 412,844 412,844
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Percent Change --- Population Minus Exclusions --- Population City 23-24 1-1-23 1-1-24 1-1-24
Riverside
Banning 0.54 31,046 31,213 31,213
Beaumont 2.03 56,275 57,416 57,416
Blythe -0.33 12,566 12,524 17,378
Calimesa -0.39 10,909 10,867 10,867
Canyon Lake -0.13 10,846 10,832 10,832
Cathedral City -0.27 51,012 50,873 50,911
Coachella 2.36 42,179 43,173 43,173
Corona 0.22 156,268 156,615 156,615
Desert Hot Springs 0.85 32,380 32,654 32,654
Eastvale -0.35 69,123 68,884 68,884
Hemet 0.37 89,333 89,663 89,663
Indian Wells 1.35 4,733 4,797 4,797
Indio 0.78 89,978 90,680 90,680
Jurupa Valley 0.12 104,541 104,663 104,721
Lake Elsinore 0.14 71,351 71,452 71,452
La Quinta 1.44 37,824 38,370 38,370
Menifee 1.97 109,401 111,560 111,560
Moreno Valley 0.12 206,903 207,146 207,146
Murrieta -0.17 109,364 109,177 109,177
Norco -0.15 22,084 22,050 25,068
Palm Desert 1.22 50,274 50,889 50,889
Palm Springs -0.03 43,802 43,791 43,791
Perris 1.13 78,424 79,311 79,311
Rancho Mirage 0.74 16,868 16,992 16,992
Riverside 0.30 315,747 316,690 316,690
San Jacinto -0.39 53,746 53,538 53,538
Temecula 0.49 108,173 108,700 108,700
Wildomar 0.65 36,093 36,327 36,327
Unincorporated 0.95 399,653 403,438 403,563
County Total 0.55 2,420,896 2,434,285 2,442,378
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Population Percent Change --- Population Minus Exclusions --- City 23-24 1-1-23 1-1-24 1-1-24
Sacramento
Citrus Heights -0.58 86,056 85,554 85,554
Elk Grove 0.69 177,446 178,679 178,679
Folsom 2.41 81,478 83,443 88,023
Galt 0.69 25,608 25,785 25,785
Isleton -0.65 772 767 767
Rancho Cordova 0.62 81,604 82,109 82,109
Sacramento 0.18 519,466 520,407 520,407
Unincorporated -0.40 599,989 597,614 597,614
County Total 0.12 1,572,419 1,574,358 1,578,938
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 Total
County Percent Change --- Population Minus Exclusions --- Population City 23-24 1-1-23 1-1-24 1-1-24
San Bernardino
Adelanto -0.80 36,422 36,131 36,131
Apple Valley -0.24 74,500 74,322 74,322
Barstow -0.34 24,124 24,043 24,669
Big Bear Lake 0.20 4,948 4,958 4,958
Chino 0.57 88,580 89,088 92,585
Chino Hills -0.17 76,547 76,414 76,414
Colton -0.12 52,841 52,778 52,778
Fontana 0.68 212,772 214,223 214,223
Grand Terrace -0.17 12,793 12,771 12,771
Hesperia 0.75 99,338 100,087 100,087
Highland 0.12 55,612 55,676 55,676
Loma Linda -0.02 24,923 24,919 24,965
Montclair -0.09 37,246 37,211 37,211
Needles -0.23 4,780 4,769 4,769
Ontario 0.93 179,555 181,224 181,224
Rancho Cucamonga 0.56 172,344 173,316 173,316
Redlands 1.28 71,776 72,696 72,696
Rialto 0.71 102,367 103,097 103,097
San Bernardino 0.39 224,316 225,188 226,541
Twentynine Palms -1.12 15,397 15,224 25,346
Upland 0.56 77,849 78,285 78,285
Victorville 0.96 132,537 133,805 138,202
Yucaipa 0.33 53,635 53,810 53,810
Yucca Valley 0.40 21,509 21,594 21,594
Unincorporated 0.02 286,864 286,926 295,763
County Total 0.42 2,143,575 2,152,555 2,181,433
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.07 5.39

0.50 2.67

0.10 0.48

1.33 0.29
7,244
35,138
66,164
88,552
15,726
315,655
95,341
157,407
7,249
37,033
66,492
90,917
15,741
317,174
96,609
157,866
7,249
37,033
66,492
90,917
15,741
317,204
96,609
160,163
County Total 1.01 781,227 789,081 791,408
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.37 -0.49
-0.52
-0.29

0.90 -0.42
18,039
29,278
30,792
12,542
10,315
7,869
48,249
118,457
17,941
29,233
30,907
12,481
10,261
7,846
48,684
117,954
17,941
30,279
30,907
12,481
10,261
7,846
48,684
120,070
County Total -0.08 275,541 275,307 278,469
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.04 0.08

0.04 1.10
-0.06

0.35 0.84

0.05 -0.07
4,968
12,734
32,503
8,582
40,571
85,362
109,687
5,660
136,235
4,970
12,744
32,515
8,676
40,545
85,659
110,608
5,663
136,144
4,970
12,744
32,515
8,676
43,610
85,679
110,608
5,663
139,158
County Total 0.28 436,302 437,524 443,623
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.80 -0.19
-0.01
-0.41

0.17 0.51

0.11 2.45
-0.21
-0.13
-0.26
-0.08

0.24 -0.53
43,191
59,656
60,419
31,316
8,477
33,368
81,635
3,564
46,333
84,463
68,093
970,772
132,386
30,845
157,187
90,063
43,095
59,471
60,904
31,255
8,476
33,230
81,773
3,582
46,384
86,535
67,953
969,491
132,048
30,819
157,566
89,584
43,095
59,471
61,033
31,255
8,476
33,230
81,773
3,582
46,384
86,535
67,973
969,491
132,048
30,819
157,566
90,467
County Total 0.02 1,901,768 1,902,166 1,903,198
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.67 -0.19
-0.18
838
1,658
667
676
1,202
3,211
872
2,692
7,820
23,794
836
1,651
665
674
1,199
3,203
870
2,710
7,805
23,750
836
1,651
665
674
1,199
3,203
870
2,710
7,805
23,796
County Total -0.15 43,430 43,363 43,409
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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1.80 0.32

0.35 1.04

0.10 -0.54
-0.52
26,255
19,060
115,266
9,969
28,543
96,096
122,220
17,392
26,033
19,403
115,632
10,004
28,840
96,192
121,558
17,301
26,033
19,403
120,339
10,004
28,840
102,173
121,558
18,076
County Total 0.04 434,801 434,963 446,426
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024 and Total Population, January 1, 2024 County
City
Percent Change
23-24
--- Population Minus Exclusions ---
1-1-23 1-1-24
Total
Population
1-1-24
Sonoma
Cloverdale
Cotati
Healdsburg
Petaluma
Rohnert Park
Santa Rosa
Sebastopol
Sonoma
Windsor
Unincorporated
-1.11
-1.06
-0.32
-0.02
-0.04
-0.07
-0.96
-0.98
-0.91
-0.40
8,808
7,381
11,020
58,457
43,838
175,013
7,366
10,636
25,628
130,333
8,710
7,303
10,985
58,445
43,821
174,890
7,295
10,532
25,394
129,812
8,710
7,303
10,985
58,445
43,821
174,890
7,295
10,532
25,394
130,777
County Total -0.27 478,480 477,187 478,152
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.58 2.28

0.52 0.15

0.29 1.49

1.59 0.55

0.08 0.16
49,035
7,539
216,734
12,103
22,942
24,426
24,614
70,885
9,103
108,372
49,319
7,711
217,862
12,121
23,008
24,790
25,006
71,273
9,110
108,544
49,319
7,711
217,862
12,121
23,008
24,790
25,006
71,273
9,110
108,544
County Total 0.55 545,753 548,744 548,744
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Page 316 of 441 ends

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Page 318 of 441 ends

0.45 0.08

1.78 1.07

0.70 1.77

1.10 0.17

0.42 25,458
10,171
10,146
12,461
62,320
69,565
142,821
7,700
133,652
25,573
10,179
10,327
12,594
62,758
70,799
144,385
7,713
134,219
25,573
10,179
10,327
12,594
62,934
70,799
144,532
7,713
134,267
County Total 0.90 474,294 478,547 478,918
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Page 320 of 441 ends

0.57 -0.49
-0.05
-0.10
-0.69
-0.20
-0.14
-0.11
-0.38
-0.44
69,256
16,965
35,286
7,537
197,737
19,168
107,723
31,400
124,165
123,111
89,813
69,014
17,061
35,114
7,533
197,536
19,036
107,512
31,355
124,029
122,643
89,421
69,014
17,061
35,114
7,533
197,536
20,916
107,569
31,355
124,029
122,643
91,093
County Total -0.23 822,161 820,254 823,863
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Page 323 of 441 ends

Fiscal Year 2024-25
Attachment C
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024
County Percent Change
23-24
--- Population
1-1-23
Minus Exclusions ---
1-1-24
Alameda
Incorporated
County Total
-0.48
-0.54
1,500,626
1,648,369
1,493,403
1,639,409
Alpine
Incorporated
County Total

0.00 -0.34
0 1,183
0 1,179
Amador
Incorporated
County Total
-0.80
-0.89
13,813
36,091
13,703
35,770
Butte
Incorporated
County Total

1.61 -0.32
144,871
206,579
147,197
205,928
Calaveras
Incorporated
County Total
-0.47
-0.15
3,604
44,853
3,587
44,786
Colusa
Incorporated
County Total
-0.18
-0.40
11,997
21,831
11,975
21,743
Contra Costa
Incorporated
County Total

0.11 0.12
971,251
1,145,274
972,337
1,146,626
Del Norte
Incorporated
County Total

0.52 -0.08
4,019
24,787
4,040
24,768
El Dorado
Incorporated
County Total

0.32 0.26
31,220
187,974
31,320
188,463
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.81 0.69
847,846
1,005,004
854,714
1,011,968
Glenn
Incorporated
County Total

2.77 1.43
14,458
28,330
14,858
28,736
Humboldt
Incorporated
County Total
-1.14
-1.11
63,392
134,351
62,667
132,866
Imperial
Incorporated
County Total

2.02 1.95
145,696
176,282
148,634
179,725
Inyo
Incorporated
County Total
-0.13
-0.16
3,853
18,826
3,848
18,796
Kern
Incorporated
County Total

0.96 0.77
587,734
887,906
593,394
894,734
Kings
Incorporated
County Total

0.15 0.04
108,741
133,516
108,903
133,575
Lake
Incorporated
County Total

0.90 0.47
21,343
66,619
21,535
66,933
Lassen
Incorporated
County Total
-0.22
-0.08
9,355
24,305
9,334
24,286
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.07 0.05
8,812,107
9,810,925
8,818,472
9,815,428
Madera
Incorporated
County Total

0.28 0.79
79,869
152,734
80,096
153,934
Marin
Incorporated
County Total
-0.55
-0.53
187,420
250,360
186,385
249,041
Mariposa
Incorporated
County Total

0.00 -0.04
0 16,912
0 16,905
Mendocino
Incorporated
County Total

0.27 -0.08
28,485
89,496
28,562
89,424
Merced
Incorporated
County Total

0.95 0.72
194,657
284,081
196,508
286,138
Modoc
Incorporated
County Total
-0.19
-0.20
2,664
8,501
2,659
8,484
Mono
Incorporated
County Total
-2.67
-2.53
7,305
13,097
7,110
12,765
Monterey
Incorporated
County Total

1.00 0.94
317,296
421,668
320,468
425,625
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.47 0.38
111,044
132,816
111,570
133,324
Nevada
Incorporated
County Total
-0.01
-0.30
33,530
100,421
33,525
100,115
Orange
Incorporated
County Total

0.29 0.31
3,010,335
3,140,716
3,019,168
3,150,493
Placer
Incorporated
County Total

0.87 0.67
298,393
410,085
300,976
412,844
Plumas
Incorporated
County Total
-1.14
-0.80
2,099
18,993
2,075
18,841
Riverside
Incorporated
County Total

0.48 0.55
2,021,243
2,420,896
2,030,847
2,434,285
Sacramento
Incorporated
County Total

0.44 0.12
972,430
1,572,419
976,744
1,574,358
San Benito
Incorporated
County Total

0.73 1.06
44,579
65,165
44,904
65,853
San Bernardino
Incorporated
County Total

0.48 0.42
1,856,711
2,143,575
1,865,629
2,152,555
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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0.03 0.07
2,756,900
3,235,324
2,757,771
3,237,699
San Francisco
Incorporated
County Total

0.11 0.11
841,745
841,745
842,644
842,644
San Joaquin
Incorporated
County Total

1.19 1.01
623,820
781,227
631,215
789,081
San Luis Obispo
Incorporated
County Total

0.17 -0.08
157,084
275,541
157,353
275,307
San Mateo
Incorporated
County Total
-0.49
-0.50
683,226
745,168
679,897
741,435
Santa Barbara
Incorporated
County Total

0.44 0.28
300,067
436,302
301,380
437,524
Santa Clara
Incorporated
County Total

0.05 0.02
1,811,705
1,901,768
1,812,582
1,902,166
Santa Cruz
Incorporated
County Total
-0.04
-0.29
135,179
263,282
135,121
262,509
Shasta
Incorporated
County Total

0.18 0.05
113,195
178,923
113,397
179,019
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment C
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024
County Percent Change
23-24
--- Population
1-1-23
Minus Exclusions ---
1-1-24
Sierra
Incorporated
County Total
-0.41
-0.50
727
3,187
724
3,171
Siskiyou
Incorporated
County Total
-0.12
-0.15
19,636
43,430
19,613
43,363
Solano
Incorporated
County Total

0.06 0.04
417,409
434,801
417,662
434,963
Sonoma
Incorporated
County Total
-0.22
-0.27
348,147
478,480
347,375
477,187
Stanislaus
Incorporated
County Total

0.64 0.55
437,381
545,753
440,200
548,744
Sutter
Incorporated
County Total

1.90 1.90
78,432
98,248
79,924
100,110
Tehama
Incorporated
County Total
-0.50
-0.61
22,913
64,578
22,798
64,182
Trinity
Incorporated
County Total

0.00 -0.11
0 15,878
0 15,860
Tulare
Incorporated
County Total

1.08 0.90
340,642
474,294
344,328
478,547
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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Fiscal Year 2024-25
Attachment C
Annual Percent Change in Population Minus Exclusions*
January 1, 2023 to January 1, 2024
County Percent Change --- Population Minus Exclusions --- 23-24 1-1-23 1-1-24
Tuolumne
Incorporated 0.25 5,119 5,132
County Total -0.11 52,207 52,148
Ventura
Incorporated -0.21 732,348 730,833
County Total -0.23 822,161 820,254
Yolo
Incorporated 0.44 186,763 187,591
County Total 0.55 220,454 221,666
Yuba
Incorporated 0.93 16,492 16,645
County Total 1.25 80,672 81,679
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

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FY 2024-25 Budget Adoption
Morro Bay City Council
Item 9.a
June 25, 2024
1 Page 331 of 441
City Council Goals Foundation
2 Page 332 of 441
Budget Timeline
3 Feb 20
Midyear Budget
Presentation to
CFAC
Feb 27
Midyear
Budget &
Fiscal Update
to Council
Apr 17
PWAB
Review of
Capital
Projects
May 21
CFAC budget
review,
emphasis on
Measure E
May 28
Budget
Study
Session
#1
May 29
Budget
Study
Session
#2
June 25
Budget
Adoption

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Actions for Budget Adoption
4 1. Adopt the Fiscal Year (FY) 2024-25 Operating and
Capital Budgets

2. Approve the FY 2024-25, FY 2025-26, and FY 2026-27
Salary Schedules

3. Approve the Recreation Specialist and Assistant to the City Manager/Public Relations Manager Job
Classifications

4. Readopt the City’s Investment Policy

5. Set the FY 2024-25 GANN Appropriations Limit Page 334 of 441

1. Citywide Budget Adoption
5 • Authority to spend and to collect revenue
• Expenditure budget totals $60.6 million (net of transfers) • $41.6 million for Operations
• $19 million for Capital Projects (net of transfers)
• Revenue budget totals $50.3 million (net of transfers) • Difference between revenues and expenditures comes
from available fund balance to fund one-time capital needs and pension trust contributions
• Authority to carry forward unspent CIP budget and to complete transfers as required by adopted reserve policies Page 335 of 441

1. Citywide Budget Adoption (cont)
6 • Budget changes from Proposed Budget presented at Budget Study sessions
• Personnel Costs: Updated costs to align with revised salary schedule
• Added $1 million to Annual Pavement Management Program, plus CFAC recommended Measure E contributions
• Decreased Chamber of Commerce Contract
• Added revenue and expenditure budget to reflect Visit Morro Bay’s donation to the City’s 60th Anniversary celebrations • Other non-substantive corrections and updates Page 336 of 441

1. Citywide Budget Adoption (cont)
7 • Added carryforward budget in Measure E for the Standards of Cover Study in-progress (approved in the FY 2023-24 budget) • Decreased the Water Operating Fund budget for water and electricity costs, more in line with actuals
• Added budget for Utility Discount Program (equal to prior year)
• Added ARPA-funded Community Grants and Professional Goals Facilitator to City Council budget
• Updated IT Fund for needed software

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2. FY25-FY27 Salary Schedules
8 • FY 2024-25, FY 2025-26, and FY 2026-27 salary
schedules
• Reflect 3-year tentative agreements approved by
Council & built into budget
• Reflect 3-year authorized increases for
unrepresented groups

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3. New Job Classifications
9 • Council approval is required for new job classifications • One proposed new classification for Recreation (partially offset by part-time salary reduction)
• Recreation Specialist – two positions converted from parttime to full-time (Aquatics and Kids Club) • One proposed new classification for Assistant to the City Manager/Public Relations Manager (split between General Fund and Economic Development Fund)
• New positions are included in the Final FY 2024-25 Budget

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4. Readopt City Investment Policy
10 • Annual review required by State law
• Minor change in policy: update changed position titles for Finance Director and Accounting Manager
• Consistent with State law and industry best practices • Outlines safety, liquidity, and yield as key objectives • Identifies positions permitted to invest funds
• Identifies internal controls, standards of care
• Outlines allowable investment types (governed by State law) • All City fiscal policies are on the City’s website and referenced and summarized in the budget document

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5. Set GANN Limit
11 • Annual process required by State law
• Intent is to limit the appropriation of tax proceeds to limit the growth of tax-funded programs
• Figure is based on 1979 base year limit, adjusted for inflation since FY 2024-25 GANN Limit & Projected Tax Revenue
• Legal limit for taxes we can collect & spend: $35.6 million • Projected tax revenues: $17.7 million
• Well below the limit and consistent with State law (at 49.99% of limit)

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Recommendation
12 1. Adopt Resolution No. 47-24 adopting the Fiscal Year FY 2024-25 Operating and Capital Budgets

2. Adopt Resolution No. 48-24 approving the FY 2024-25, FY 2025-26, and FY 2026-27 Salary Schedules

3. Adopt Resolution No. 49-24 approving Recreation Specialist and Assistant to the City Manager/Public Relations Manager Job Classifications

4. Adopt Resolution No. 50-24 readopting the City’s Investment Policy

5. Adopt Resolution No. 51-24 setting the FY 2024-25 GANN Appropriations Limit at $35,461,193

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Presentation Outline
13  Citywide Budget Summary
 Departmental Goals/Objectives
 Personnel Changes
 Capital Projects
 Forecasts, Reserves, and Takeaways
 Discussion and Recommendation

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Citywide Revenue by Type
14 Page 344 of 441
Citywide Operating Revenues by Fund
15 Page 345 of 441
Citywide Operating Expenditures by Fund
16 Page 346 of 441
Expenditure Budget by Department
17 Page 347 of 441
18 Citywide Operating Budget to Actuals

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19 The City Budget at Work
Department Goals & Objectives

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20 City Council
• Maintain
Additional
Community
Grant funding
of $25,000
($60K total)
• New Council
Orientation
City Manager’s
Office
• Expand team
building and
training
opportunities
for staff
• Enhance
public
outreach
• Onboard new
Council
Administrative
Services
• In-House
Analysis:
• Business
License and
TOT Service
• Risk-Based
Reserves
• Business
Process
Automation

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21 Community
Development
• Continue to
Implement
Short-Term
Rental
Ordinance
• Large Scale
Projects • BESS • Offshore
Wind
Fire
Department
• Complete
Standard of
Cover Study/
Community
Risk
Assessment
• Invest in
Emergency
Preparedness
Harbor
Department
• Implement
new revenue
management
system
• Continue
work on
Offshore
Wind
regional
collaboration

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22 Police
Department
• Build
community
partnerships
and connect
resources to
the unhoused
• Continue to
promote
Citizen
engagement
programs
Public Works
• Complete
major
pavement
management
contract in Fall
2024
• Begin Council
Chambers
Upgrade
Recreation
Services
• Produce
Community
Activity Guide
• Support 60th
Anniversary
Celebration
• Continue to
Enhance
Community
Events and
Wellness
Programs

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Personnel Changes
23 Adding 4 full-time positions; 3 are conversions from PT to FT

Page 353 of 441 ends

Personnel Changes
24 Reducing overall part-time FTE count by 1.7

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Capital Projects: One-Year Plan
25 • Investing total of $19M in critical infrastructure - 12 projects

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26 Assumes • 33% minimum
reserves
•3-5% expenditure
increase
•2-4% revenue
increase
• COLAs/Equity
Adjustments per
tentative
agreements

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27 Assumes • 3-5% expenditure
increase
•2-3% revenue
increase
• COLAs/Equity
Adjustments per
tentative
agreements

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Declining but
positive
operating
balance

Page 358 of 441 ends

29 May require transfer out of Emergency Reserves
Combined
operating,
transfers, and
capital costs are
projected to
exceed
revenues and
reduce reserves

Page 359 of 441 ends

30 Assumes
• $1-3M in CIP
spending each
year
• 33% reserves

Page 360 of 441 ends

31 Assumes • 3-5% expenditure
increase
•2-3% revenue
increase
• COLAs/Equity
Adjustments per
tentative
agreements

Page 361 of 441 ends

32 Assumes • 3% expenditure
increase
• 0% revenue
increase
• COLAs/Equity
Adjustments per
tentative
agreements

Page 362 of 441 ends

33 Assumes • 3% expenditure
increase
• 0% revenue
increase
• COLAs/Equity
Adjustments per
tentative
agreements

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Citywide Reserve Levels
34 General Fund (001) [includes Measure E Fund (003)] $3.9 million General Government Compensable Leave Fund (005) $0.3 million General Fund Vehicle Replacement Fund (050) $0.6 million General Fund Emergency Reserve Fund (051) $7.2 million
General Fund Facility Maintenance Fund (052) $0.1 million General Fund Capital Accumulation Fund (460) $0.1 million Total General Fund Reserves Projected at FY 2023-24 Year-End $12.2 million Risk Management Fund (minimum level) $0.7 million
Information Technology Fund (minimum level) $0.2 million Water Fund (minimum level) $1.4 million
Sewer Fund (minimum level) $1.7 million
Harbor Fund (minimum level) $0.3 million
Citywide Estimated FY 2023-24 Year-End Reserves Total $16.5 million Total
equates to
40% of the
Citywide
Operating
Budget
Meets
General
Fund
Emergency
Reserve
Policy

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Key Budget Takeaways
35 Pandemic travel
surge over
(plateauing tax
revenues)
Expenditure
growth outpacing
revenue growth
(inflation)
Measure E
helping maintain
services, address
some capital
Significant
unfunded capital
needs
Ongoing revenues
needed to support
near & long-term
CIP
Looming pension
challenges
Decreasing
reserves in outyears

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Discussion
36 Page 366 of 441
Recommendation
37 1. Adopt Resolution No. 47-24 adopting the Fiscal Year FY 2024-25 Operating and Capital Budgets

2. Adopt Resolution No. 48-24 approving the FY25-FY27 Salary Schedules

3. Adopt Resolution No. 49-24 approving Recreation Specialist and Assistant to the City Manager/Public Relations Manager Job Classification

4. Adopt Resolution No. 50-24 readopting the City’s Investment Policy

5. Adopt Resolution No. 51-24 setting the FY 2024-25 GANN Appropriations Limit at $35,461,193

Page 367 of 441 ends

Prepared By: AC Dept Review: GK
City Manager Review: _YK______ City Attorney Review: _CFN_ ____ Staff Report
TO: Honorable Mayor and City Council DATE: June 18, 2024 FROM: Greg Kwolek – Public Works Director
SUBJECT: Council Consideration to Affirm Staff Authority to Execute Amendment to State Revolving Fund (SRF) Construction Loan Agreement

RECOMMENDED ACTION
Affirm Staff Authorization to execute an amendment to the SRF Construction Loan Agreement (Loan Amendment) with the State Water Resources Control Board for a needed extension of the Construction Completion Date and SRF loan repayment dates, as well as providing for additional budget for WTTP decommissioning and demolition. This Amendment is required to be executed by June 30, 2024, by the State Water Board.

ESTIMATED FISCAL IMPACT
The budgetary breakdown of the Loan Amendment is shown in Table 1 below.

Table 1. SRF Construction Loan Amendment Budgetary Breakdown Project Component Budget
Water Reclamation Facility $6,056,485
Recycled Water Facilities $4,781,372
Former WWTP Demolition and Decommissioning $4,543,212
Contingencies (Includes Construction Change Orders) $5,790,931 Total $21,172,000
The drawdown of an additional $21,172,000 of 0.9% low interest financing through the Loan Amendment will defer the 37-month deferral of debt service payments and would increase available cash and reserves in the Water and Sewer Funds by the equivalent amount. This would defer the need to increase water and sewer rates in the short-term. However, it would also commit the City to 30 years of additional debt service @ 0.9% interest rate and a payment of up to approximately $806,000 depending on the final loan amount, the availability of grant funding, and debt service calculations.

DISCUSSION
At the regular meeting on August 23, 2022, the City Council authorized City staff to apply for and execute, once finalized, the Loan Amendment through passage of Resolution 81-22. Prior to this action, the Loan Amendment concept was reviewed by the Citizen’s Finance Advisory Committee (CFAC) during their meeting on August 16, 2022. The CFAC ultimately recommended the City AGENDA NO: 9.b
MEETING DATE: June 25, 2024

Page 368 of 441 ends

01181.0024/899839.1
Council pursue the Loan Amendment. The purpose of the Loan Amendment was to finance increased Water Reclamation Facility (WRF) program costs by taking further advantage of inexpensive 0.9% financing available through the SRF Construction Loan.

The Loan Amendment application subsequently submitted to SRF requested:
 deferral of the start of loan repayment to September 2027,  an extension to the project completion date to September 30, 2026,  $21,172,000 of financing at 0.9% for additional WRF program costs,  new project scope to include costs associated with the WWTP Decommissioning and Demolition project.

Staff submitted the loan amendment application to SRF staff in October 2022, and since that time staff has been in regular communication with SRF staff regarding the status of this application as well as negotiating favorable adjustments on the SRF Planning Loan. In the later part of May of this year, the City received the Loan Amendment document from SRF. Staff review of the Amendment document, which included review by City Staff, the City Attorney’s Office, and Carollo, revealed some minor discrepancies that SRF staff is now reviewing.

Staff recommends the City Council vote to affirm staff’s authorization to execute the Loan Amendment, after requested minor corrections by the State are made, for the following reasons:

1. The Loan Amendment extends the construction completion date in the loan agreement to September 2026, which based on current schedules offers the City enough time to complete the remaining components of the WRF program. The current project deadline passed on August 31, 2023, which SRF has waived for the time being.

2. The Loan Amendment defers the start of loan repayments 37 months to September 2027, which would otherwise have to begin in August 2024. This deference allows the City to retain cash over the next three years to fund other water and sewer capital projects and delaying the need for water and sewer rate increases for at least one year.

3. The Loan Amendment makes the City eligible for $16.2M of reimbursement for FBV and Anvil expenses that were already cash paid. Again, reimbursement of these funds in to the water and sewer funds would give the City flexibility to potentially defer raising water and sewer rates and/or invest in capital projects.

4. The Loan Amendment would allow for financing of up to $4.5M for the Wastewater Treatment Plan Decommissioning and Demolition project. Currently the project would be funded either through the WIFIA loan or by cash from the Sewer Fund.

5. The pending execution of a SRF Planning Loan Amendment is tied to the execution of the SRF Construction Loan Amendment. The Planning Loan Amendment repayment will not start until September 2027 (versus August 2024 if City does not execute the Amendments). The Planning Loan Amendment would reduce the interest rate of the Planning Loan from 1.7% to

0.9%, and would extend the term of the repayment from 10 years to 30 years.

6. The City is not required to draw down on the full $21M of the Loan Amendment. City staff plans to propose a funding and financing strategy at a future meeting to decide which funding sources should be prioritized for which WRF related projects.

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01181.0024/899839.1
Table 2 below lists the total financing the City currently has in place as well as the Loan Amendment amount. This does not include anticipated grant funding. City staff plans to bring financing and funding scenarios and strategies to a future meeting of the City Council for review. This review will also include scenarios involving potential grant funding of up to $10.5M, which has already been awarded to the City. City staff is working diligently with the granting agencies to secure grant agreements that will “lock in” the funding.

Table 2. Currently Available Project Financing 1
Financing Source Financing
Amount
Financing Spent
or Allocated
Financing
Remaining
Intended
Use
Original SRF Construction Loan $66,604,638 $66,604,638 $0 SRF Construction Loan Amendment $21,172,000 $16,237,000 $4,935,000 Note 2 SRF Planning Loan $10,300,000 $10,300,000 $0
SRF Recycled Water Planning Grant $(5,000,000) $(5,000,000) $0 EPA WIFIA Loan $61,700,336 $46,259,157 $15,441,179 Note 3 Total Project Funding $154,776,974 $134,400,795 $20,376,179 Notes:

1. Currently available financing from executed agreements and this SRF Construction Loan Amendment pending City Council approval and City execution.

2. Remaining budget of SRF Construction Loan Amendment is anticipated for the WWTP Demolition and Decommissioning Project.

3. Remaining budget of EPA WIFIA Loan is anticipated for any additional WWTP Demolition and Decommissioning Project costs, City Administration costs not yet reimbursed, and Recycled Water Facilities costs not yet reimbursed.

CONCLUSION
The SRF Construction Loan Amendment provides the City a needed extension of the Construction Completion Date and SRF loan repayment dates, as well as provides additional budget for WTTP decommissioning and demolition and reimbursement of $16.2M in costs already incurred and paid for by the City.

ATTACHMENTS

1. SRF Loan Amendment (Not Final)

2. Resolution No. 81-22

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Morro Bay City CouncilJune 25, 2024

Morro Bay City Council
June 25, 2024